Item 2.02. Disclosure of Results of Operations and Financial Condition
Elkin, NC - November 7, 2008 - Yadkin Valley Financial Corporation (NASDAQ:
YAVY), the holding company for Yadkin Valley Bank and Trust Company, announced financial results for the third quarter ending September 30, 2008. Net income was $1.8 million or $0.15 per diluted share, compared to net income of $3.9 million or $0.37 per diluted share in the third quarter of 2007. Included in the third quarter 2008 results was a $972,800 pretax other than temporary impairment charge on investments in Federal Home Loan Mortgage ("Freddie Mac") perpetual preferred securities. Excluding this charge, diluted earnings per share were $0.21.
Item 9.01(d): Exhibits
(a) Financial statements:

None

(b) Pro forma financial information:

None

(c) Shell company transactions:

None

(d) Exhibits:

Exhibit 99.1: Press Release of Yadkin Valley Financial Corporation dated November 7, 2008