DURHAM, N.C., Nov. 19 /PRNewswire-FirstCall/ -- Cardinal State Bank , a North Carolina state chartered bank headquartered in Durham, North Carolina, announced today that it received a Staff Determination from NASDAQ on November 14, 2007 regarding its noncompliance with the filing requirements for its Form 10-QSB for the third quarter ended September 30, 2007. In not meeting these filing requirements for continued listing, the Bank's common stock is therefore subject to delisting from the NASDAQ Capital Market until regulatory compliance is satisfied.
John W. Mallard, Jr., President and CEO of Cardinal State Bank noted, "In connection with our pending merger with Yadkin Valley Bank and Yadkin Valley Financial Corporation, we have identified certain accounting issues relative to an unrecorded liability for post retirement health care benefits and the positive effect of recording the deferred tax asset that relates to the Bank's operating loss carryforwards, the net effect of which would be positive. We are in the process of addressing these issues with the FDIC and the Securities and Exchange Commission. We are moving swiftly with our external and internal accounting team members to resolve these issues and bring our filings current with NASDAQ."
Mallard further noted "Our pending merger is well underway and we anticipate having our Shareholders' Meeting to approve the transaction early in the first quarter of 2008 with closing shortly thereafter."
Cardinal State Bank is a full-service community bank. Founded in 2001, the Bank has three offices in Durham: Homestead Market, Independence Park and Westgate Drive and one office in Hillsborough at 100 S. Churton Street.
This news release may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of Cardinal State Bank's goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", "projects", "outlook" or similar expressions. These statements are based upon the current beliefs and expectations of Cardinal State Bank's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond Cardinal State Bank's control).
