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: August 6, 1998
VALLEY FINANCIAL CORPORATION
VIRGINIA 33-77568 54-1702380
(State of Incorporation) (Commission (I.R.S. Employer
File Number) Identification Number)
36 CHURCH AVENUE, S.W.
ROANOKE, VIRGINIA 24011
(Address of principal executive offices)
(540) 342-2265
(Issuer's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
Valley Financial Corporation (the "Company"), the holding company for
Roanoke, VA-based Valley Bank, announced on July 23, 1998 its financial results
for the period ended June 30, 1998. The financial results are detailed in the
Company's Press Release dated July 23, 1998 filed as Exhibit A to this Form 8-K
and incorporated by reference herein.
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: August 6, 1998 /s/ A. Wayne Lewis
----------------------------------
A. Wayne Lewis, Executive Vice President
EXHIBIT A
FOR RELEASE 6:00 P.M. JULY 23, 1998
VALLEY FINANCIAL CORPORATION
36 Church Avenue, S.W.
Roanoke, Virginia 24011
For Further Information Contact:
Ellis L. Gutshall, President and Chief Executive Officer
A. Wayne Lewis, Executive Vice President and Chief Operating Officer
(540) 342-2265
VALLEY FINANCIAL CORPORATION EARNINGS UP SIGNIFICANTLY
ROANOKE, VIRGINIA. July 23, 1998 -- Roanoke-based Valley Financial Corporation
announced today its consolidated financial results. For the six months ended
June 30, 1998, Valley Financial reported operating earnings of $368,000 or $.38
per share compared with $129,000 or $.13 per share for the first half of 1997, a
185% increase. Net income after provision for income taxes of $108,000 was
$260,000 or $.27 per share for the first six months of 1998, a 102% increase
over the net income of $129,000 or $.13 per share reported for the same period
in 1997 when the Company was not in a tax-paying position. The Company's return
on average total assets was 0.64% for 1998's first half, and its return on
average shareholders' equity was 6.26%. These profitability ratios represent
significant increases from the 0.45% and 3.53%, respectively, reported for the
six months ended June 30, 1997.
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For the three months ended June 30, 1998, Valley Financial reported operating
earnings of $175,000 or $.18 per share compared with $102,000 or $.11 per share
for the second quarter of 1997, a 72% increase. Net income after provision for
income taxes of $45,000 was $130,000 or $.13 per share for the second quarter of
1998, a 28% increase over the net income of $102,000 or $.11 per share reported
in the second quarter of 1997 when the Company was not in a tax-paying position.
The Company's return on average total assets was 0.60% for 1998's second
quarter, and its return on average shareholders' equity was 6.16%.
At June 30, the Company's total assets were $90,386,000, total deposits were
$72,553,000, total loans stood at $60,742,000 and total shareholders' equity was
$8,497,000. Compared with June 30, 1997, the Company experienced increases of
$26,694,000 or 42% in total assets, $17,585,000 or 32% in total deposits and
$19,177,000 or 46% in total loans over the twelve-month period. With capital at
June 30, 1998 representing over 9% of total assets, the Company easily exceeds
the regulatory minimum to be considered "well capitalized."
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Valley Financial Corporation is the holding company for Valley Bank, which
opened for business May 15, 1995 and engages in a general commercial and retail
banking business in the Roanoke Valley, emphasizing the needs of small
businesses, professional concerns and individuals. Valley Bank operates from
three full-service offices at 36 Church Avenue, SW and 2203 Crystal Spring
Avenue, SW in Roanoke City, and 4467 Starkey Road, SW in Roanoke County.
Additionally, it recently opened a loan production office at 302 East Main
Street in the City of Salem and announced plans to open a full service branch at
8 East Main Street in Salem.
The Common Stock of Valley Financial Corporation is traded over the counter
under the symbol VYFC, and is quoted on the OTC Bulletin Board, an electronic
quotation and trade reporting service of the National Association of Securities
Dealers.
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VALLEY FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31 JUNE 30
1998 1997 1997
------------- -------------- -------------
(IN THOUSANDS, EXCEPT SHARE DATA)
<S> <C>
ASSETS
Cash and due from banks $3,234 $3,324 $1,722
Money market investments 8 1,473 869
Securities
available-for-sale 24,499 21,144 17,773
Loans 60,742 46,647 41,565
Less allowance for loan losses and unearned
fees (631) (497) (448)
----- ----- -----
Total net
loans 60,111 46,150 41,117
Premises and equipment 1,283 1,315 1,388
Organizational costs 107 134 164
Other
assets 1,144 1,137 659
------ ------ ---
Total assets $90,386 $74,677 $63,692
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing demand deposits $8,251 $7,956 $5,104
Interest bearing demand, savings & money maket
deposits 21,010 19,048 13,295
Time deposits greater than $100,000 7,074 6,481 5,580
Other
deposits 36,218 32,103 30,989
------- ------- ------
Total
deposits 72,553 65,588 54,968
Short term borrowings 3,479 0 318
Federal Home Loan Bank advances 5,000 0 0
Other
liabilities 857 810 939
---- ---- ---
Total
liabilities 81,889 66,398 56,225
------- ------- ------
Preferred stock, no par value. Authorized
10,000,000 shares; none issued and outstanding
Common stock, no par value. Authorized
10,000,000 shares; issued and outstanding 964,040 at September
30, 1997 and December 31, 1996 9,089 9,089 9,089
Accumulated deficit (606) (866) (1,620)
Unrealized gains (losses) on securities
available-for-sale, net of deferred tax expense (benefit) 14 56 (2)
--- --- ---
Total shareholders'
equity 8,497 8,279 7,467
------ ------ -----
Total liabilities and shareholders'
equity $90,386 $74,677 $63,692
BALANCE SHEET RATIOS:
Nonperforming loans/total loans 0.00% 0.00% 0.00%
Loans past due > 90 days/total loans 0.00% 0.00% 0.00%
Allowance for loan losses/loans, net 0.98% 0.99% 1.00%
Book value per share $8.81 $8.59 $7.75
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