UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: July 19, 1996
VALLEY FINANCIAL CORPORATION
VIRGINIA 33-77568 54-1702380
(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
36 Church Avenue, S.W.
Roanoke, Virginia 24011
(Address of principal executive offices)
(540) 342-2265
(Issuer's telephone number, including area code)
Item 5. Other Events.
Valley Financial Corporation (the "Company"), the holding
company for Roanoke, VA-based Valley Bank (the "Bank"),
previously announced on June 21, 1996, the resignation of Guy W.
Byrd, Jr. as a director, President and Chief Executive Officer of
the Company and the Bank. Since that time, the Company has
identified the extent of its severance obligation to Mr. Byrd.
Pursuant to an Employment Agreement between Mr. Byrd and the
Company dated April 8, 1994 (the "Agreement"), the Company is
obligated to pay to Mr. Byrd his base salary in effect at the
time of the termination of his employment through the remaining
term of the Agreement. Payments to Mr. Byrd pursuant to the
Agreement will total approximately $340,000 through January 31,
1999, the remaining term of the Agreement. The Company will
recognize approximately $312,000 as an expense in the second
quarter of 1996, representing the estimated present value of
these future payments.
The Company's common stock is traded over the counter under
the symbol VYFC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
VALLEY FINANCIAL CORPORATION
Date: July 19, 1996 /s/ A. Wayne Lewis
A. Wayne Lewis
Executive Vice President
