The Charlotte Observer from Charlotte, North Carolina • 33

11 2008 toNASDAQ 1889 222870 Crude Oil futures $10258barrel 6 S81 500 753 123204 cf Gold $76250 Money Markets Lower oil prices could reduce production costs for coal 4D 00 S87P53500 11 2008 II 0 0 SE ON El ass I Money Markets 6 6 222870 123204 Banes Lower oil prices could reduce production a 50 1 9 Crude Oil futures cf Gold Insida costs for coal 4D $10258barrel $76250 0 charlotteobservencomibusines NS Yadkin Valley Financial buys Charlotte bank yadl buys i Bob2A buy bach trrottli o'd securities Thursday September DOW 3819 1126892 t10-Year note tt 005 364 I Thursday Septerr tie DOW 3819 1126892 1-t 10-Year note 005 364 gle Thursday September 6 o8w D319 1126892 10-Year note tt 005 364 The $92 million transaction makes American Community Bancshares the 3rd area bank to sell to out-of-market institution since last August The $92 million American Corm 3rd area bank institution sincl Details of the latest deal Transaction value: $92 million Seller: Charlotte-based American Community Bancshares Has $530 million in assets and 13 offices in Mecklenburg Union York (SC) and Cherokee (SC) counties Buyer: Elkin-based Yadkin Valley Financial Corp Has $14 billion in assets and 29 branches in 12 NC counties including Mecklenburg and Iredell Operates banks under the Yadkin Valley Piedmont Bank High Country Bank and Cardinal State Bank names Deal climate: Nationally there have been 100 deals worth $18 billion this year involving banks with assets of $1 billion or less according to SNL Financial That compares with 251 deals worth $83 billion in all of 2007 American Community is the third Charlotte bank to sell to an out-of-market bank since last August It's also the second of three area community banks founded in the late 1990s to be snapped up in that span Experts said it's a natural life cycle for community banks to be sold after a decade or so as growth slows and shareholders look for a return on their investment While community bank deals have declined in the past year industry observers expect the pace to pick up eventually as smaller banks wrestle with rising loan losses and depleted capital big question is whether there will be enough healthy buyers they said "I think we will see a wave of small-bank acquisitions" said UNC Charlotte professor Tony Plath "Everyone will be looking to pair up to pool resources" SEE BANK 2D BY RICK ROTHACKER rrothkkercharlotteobservercom Despite tough times for the financial services industry another Charlotte community bank is selling for a premium Ten-year-old American Community Bancshares Inc on Wednesday said it was selling to Elkin-based Yadldn Valley Financial Corp in a transaction valued at about $92 million The deal creates a bank with about $2 billion in assets and 42 branches stretching from Cherokee County in South Carolina to the NC foothills to the BY RI rrothkken Despite tough th industry another selling for a premiu Ten-year-old A shares Inc on Wed' kin-based Yadldn action valued at ab ates a bank with ab branches stretchin South Carolina to In settlement bank will pay $48 billion to investors whose funds were frozen in the February credit crunch SI More than 20000 fans Sold-out hotels Tourism officials expect a $13 million weekend from the first races at the Concord dragway BY RICK ROTHACKER rrothackercharlotteobservercom After protracted negotiations Bank of America Corp on Wednesday agreed to buy back $48 billion in troubled securities held by its customers becoming the latest bank to settle with regulators In a pact with Massachusetts securities regulators the Charlotte bank will purchase auction-rate securities held by retail investors small businesses and charitable organizations nationwide The Securities and Exchange Commission on Wednesday also said it was close to resolving its probe The banking giant is one of many financial institutions to come under scrutiny for the sale of a type of bond with resetting interest rates The market for auction-rate securities froze in February amid the credit crunch leaving individual and institutional investors unable to access their money Massachusetts Secretary of the Commonwealth William Galvin said his investigation was spurred by a wave of consumer complaints after the market's collapse The state's inquiry found that Bank of America sold the securities as safe liquid and SEE SECURITIES 2D ate e-s-a-a u-n-th irnk ad 2D Revving economic engine MORE BANKING NEWS Countrywide customers learn of information breach 2D that felt Uwe( e- 010104 1 3 1444i tAO 1mmP 4 low 'w04 V4r0111 11:4 r- -Mt 9 fi i 1 4 4 imit-00-1- At a liar" i4 LattmolIP tr fl'y-1 ---1 11 4 of -4-0 4 y- -I 4 1 'V ''1 it ri 1 PI 'l dip i'''' 7' 'i L1v: 'Q gL-----4 77 '4--- ir 7- 7 ---7--- dorl'- 41 1 741 --7 7 4 i -1 a fic 1 --71 Akyrkursg 141 i 4 or titit't '4: I 47 s'1' P'441410 cocitr 41' -60 l' ch 0 131 i21' i t'rtit eLt 4-- tff 00 71yoritti I 1 11441 1 toontille 1 FI' telmirertlitio4 all tlif jrzira ismo -e-''-' i Blue Cross actuary: Help health care by reallocating money He wants to reduce tax deductions for employers' 'rich benefit plans' add incentives to back healthy lifestyles DIEDRA LAIRD dlairdcharlotteobservercom Concord Mayor Scott Padgett (right) takes the lead as he drag races Cabarrus County Commissioners Chairman Jay White during Saturday's open house for the zMAX Dragway Concord Concord during Satt BY JEFFERSON GEORGE jgeorgecharlotteobserveccom It's no Sprint Cup weekend but the inaugural NHRA Carolinas Nationals starting today in Concord likely will bring a welcome burst of visitor spending to the Charlotteregion From staying in hotels to dining in restaurants drag racing fans are expected to spend about $13 million during the four days of the National Hot Rod Association event at the new zMAX Dragway Concord according to Cabarrus County tourism officials and Lowe's Motor Speedway home of the dmgway The infusion comes as the Charlotte area has endured a rise It's no Sr nas Nation come burst From sta fans are ex days of th( zMAX Drz tourism of dmgway The infu in empty rooms this year Although the region's average room rate was up almost 8 percent in the first half of 2008 occupancy was down almost 5 percent from the same period last year including a 10 percent swoon in June At the Comfort Suites off Interstate 85 about two miles from the dragway general manager Lynn McCormack said that all rooms are sold out until Sunday and that nearby hotels also are full "It's been a much bigger event than anyone anticipated" she said Cabarrus tourism officials expect more than 20000 spec-SEE RACING 2D BY KAREN GARLOCH kgarlochcharlotteobservercom US politicians have grappled for years with what to do about rising health care costs and the growing number of uninsured Americans But in an hour Wednesday morning John Friesen an actuary with Blue Cross and Blue Shield of North Carolina laid out some simple concepts that don't require reorganizing the entire system or throwing out the parts that work "We can solve this problem if we put our minds to it" Friesen told about 150 people at a conference sponsored by the Charlotte Chamber "We have over-insured people" he said as well as uninsured people "It's a question of redistributing the dollars" Friesen who said his ideas are not necessarily backed by Blue Cross suggested that the federal govermuent should provide coverage for those who make less than double the federal poverty lev el which is $21000 for a family of four Part of that expense could be offset he said by reducing the tax deduction for employers who provide "rich benefit plans" Friesen said any health plan with a deductible of less than $1000 should be considered a "very rich plan" If people have to buy their own health insurSEE HEALTH CARE 3D TYPE OF PERCENT AVERAGE DAILY TOTAL VISITOR OF CROWD SPENDING SPENI Hotel guests 50 $252 $9324 Campers 20 $145 $2146 Daytrippers 10 $125 $9250 In addition race team members will spend an estimated $769920 TOTAL SPENDING $9324000 $2146000 $925000 Visitor spending Cabarrus County toitrism officials and Lowe's Motor Speedway calculated different spending amounts for different types of visitors fi)r this weekend's MIRA drag racing event About 20 percent of spectators will be from the Charlotte region and aren't counted in visitor spending Visitor Cabarrus tor Speedy for differer MIRA dm tators will counted in I insider 1 THE CHARLOTTE BUSINESS SCOOP Insider THE Steel left a good early impression Steel early this season Oh and a spokeswoman for the promotion said contestants got a 10-minute restroom break every three hours That's a relief Odds and ends Fastest Items in Charlotte financial adviser John Gugle of Alpha Financial Advisors is a contributor to a new parenting book "The Twin Set" from Three Rivers Press It's a subject he knows: He has 4-year-old twin boys and his wife Ann is a former board member of Charlotte Mothers of Multiples Rain forced the developers of Kannapolis' water project to cancel a road openitig event where they plannedto donate $5000 to Cannon Memorial YN to emphasize their focus on community Not to worry The Y's Kimberly Cousineau was called to the Kellswator Bridge Development office later to accept a check from Kellswater's George Kiser Jr and Don Wagstaff and Muni-field Partners' Jim Merrifield -STAFF REPORTS than per share following the government's takeover of the mortgage giant and its sister hmnie Mae The bank has said it will use that money to maintain a consistent level of giving through various economic cycles Halloween masks: Pa lin trails badly Barack Obama has nothing to fear from Sarah Pa lin at least not over at Morris Costumes on Monroe Road in Charlotte A staffer there says the store has an array of political masks for Halloween including Oban-ia John McCain and Hillary Clinton but that it doesn't expect any Palins A bigger threat to Obama: Indiana Jones Bigfoot and Batman "Po- litical masks are not as popular as you would think" the staffer says Batman "People go for movies TV characters stuff like that" Panthers signature sandwiches Insert a "tackle your hunger" joke here: Charlotte-area Harris Teeter stores and Carolina Panthers Wen stores and Carolina I)anthers sive tackle Jordan Gross are serving up the first of this season's three Panthers signature sandwiches Called "the Big Block" Gross' pick is a turkey sandwich with onions sprouts banana peppers cucumbers provolone cheese light mayonnaise oil and vinegar on whole grain bread The Teeter is mum on which players are involved with the forthcoming sandwiches So could we see Julius Peppers' "sack John Kasay's "kickint cold Stay tuned NFL fans get touchy to get tickets Speaking of the Panthers fans this week got to prove their loyalty and win season tickets by doing one simple thing: touch a giant inflatable football jersey for a really long time As part of a Bank of America promotion several fans tried to outlast each other by keeping a hand foot or other body part in continuous contact with the 20-foot-tall jersey The contest started at noon Tuesday at Trade and Tryon streets and as of 3 pm Wednesday 27 hours later three people were still standing The reward for the last to let go: tickets to every Panthers home game tickets to every 1)arithets home game "I didn't know at the time he was going to be coming to Charlotte" James said last week in an interview with the Observer "I'm sure he didn't either" James says he hasn't talked to the other Bob since he became Wachovia's head honcho "But" he added "I'm sure he'll do a great job" A gift from Golden West In 2006 Wachovia's charitable foundation received an unusual gift of $370 million in Freddie Mac stock from Golden West Financial the mortgage company it was buying Luckily the bank made a smart move and sold it soon after Freddie Mac's stock is now trading 101'4 less Mac's striek is now trodinc! 1)r4 ICS'S Talk about foreshadowing Wachovia CEO Bob Steel addressed a whole contingent of Tar I led bankers back in February when the NC Bankers Association took a trip C41A to the nation's capital Steel was working for HIN the Treasury Depart- ment then It was a few months before Wacho- via dismissed Ken Lisl Steel Thompson and persuaded Steel to return home to the Old North State Bob James the chief exec of Fifth Third Bancorp's NC operations was chairman of the NC Bankers Association at the time He says Steel was one of the c-rn'it'n sneakers' one of the tyl 1- Talk about foresh via CEO Bob Steel a( contingent of Tar II in February when Associ to the rSteel I fok the ment month via Steel Thom ed Stel to the Old North St Bob James the ci Third Bancorp's N( chairman of the N0 ation at the time I one of the Coming Sunday in On The Boss's Mind: Lending Tree founder Doug lebda talks about working with frIrmnr GE chipf Lirk 'Irk WfAch working with fnrmnr chipf I t'll.