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: April 20, 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 April 16, 1998 its financial results
for the period ended March 31, 1998. The financial results are detailed in the
Company's Press Release dated April 16, 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: April 20, 1998 /s/ A. Wayne Lewis
----------------------------------------
A. Wayne Lewis, Executive Vice President
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EXHIBIT A
FOR RELEASE 6:00 p.m. April 16, 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 ANNOUNCES
RECORD QUARTERLY OPERATING EARNINGS
ROANOKE, VIRGINIA. April 16, 1998 -- Roanoke-based Valley Financial
Corporation announced today its consolidated financial results for the quarter
ended March 31, 1998. At March 31, the Company's total assets were $83,755,000,
total deposits were $69,559,000, total loans stood at $51,424,000 and total
shareholders' equity was $8,343,000. Compared with March 31, 1997, the Company
experienced increases of $25,352,000 or 43% in total assets, $19,351,000 or 39%
in total deposits and $14,048,000 or 38% in total loans over the twelve-month
period. With capital at March 31, 1998 representing 10% of total assets, the
Company easily exceeds the regulatory minimum to be considered "well
capitalized."
For the three months ended March 31, 1998, Valley Financial reported operating
earnings of $193,000 or $.20 per share compared with $27,000 or $.03 per share
for the first quarter of 1997. Net income, after provision for income taxes of
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$63,000, was $130,000 or $.13 per share for the first quarter of 1998 and also
compares favorably with the net income of $27,000 or $.03 per share reported in
the first quarter of 1997 when the Company was not in a tax-paying position.
The Company's return on average total assets was 0.69% for 1998's first quarter,
and its return on average shareholders' equity was 6.37%. These profitability
ratios represent significant increases from the 0.20% and 1.49%, respectively,
reported for the three months ended March 31, 1997.
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.
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.
- END -
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<TABLE>
<CAPTION>
VALLEY FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31 December 31
1998 1997
-------- -----------
(in thousands, except share data)
<S> <C> <C>
Assets
Cash and due from banks $ 2,249 $ 3,324
Money market investments 196 1,473
Securities available-for-sale 28,034 21,144
Loans 51,424 46,647
Less allowance for loan losses and
unearned fees (525) (497)
-------- --------
Total net loans 50,899 46,150
Premises and equipment 1,290 1,315
Other assets 1,087 1,271
-------- --------
Total assets $ 83,755 $ 74,677
======== ========
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $ 8,640 $ 7,956
Interest bearing demand, savings & money
market deposits 22,386 19,048
Time deposits greater than $100,000 6,769 6,481
Other time deposits 31,764 32,103
-------- --------
Total deposits 69,559 65,588
Short term borrowings 56 0
Federal Home Loan Bank advances 5,000 0
Other liabilities 797 810
-------- --------
Total liabilities 75,412 66,398
-------- --------
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 December 31, 1997 and 1996 9,089 9,089
Accumulated deficit (736) (866)
Unrealized gains (losses) on securities
available-for-sale, net of tax (10) 56
Total shareholders' equity 8,343 8,279
-------- --------
Total liabilities and shareholders'
equity $ 83,755 $ 74,677
======== ========
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31
-------------------------
1998 1997
------- -------
(in thousands, except per share data)
<S> <C> <C>
Interest Income $ 1,433 $ 997
Interest Expense 730 524
------- ------
Net interest income 703 473
Provision for loan losses 31 36
------- ------
Net interest income after provision for
loan losses 672 437
Noninterest income 68 39
Noninterest expense 547 449
------- ------
Net income before taxes $ 193 $ 27
------- ------
Provision for income taxes 63 0
------- ------
Net income $ 130 $ 27
======= ======
Net income per share $ 0.13 $ 0.03
======= ======
Selected Financial Ratios:
Return on average total assets 0.69% 0.20%
Return on average total shareholders' equity 6.37% 1.49%
Yield on average earning assets 8.01% 7.83%
Cost of funds 4.38% 4.56%
Net interest margin 3.93% 3.72%
Overhead efficiency ratio 71.41% 87.64%
Nonperforming loans/total loans 0.00% 0.00%
Loans past due > 90 days/total loans 0.00% 0.00%
Allowance for loan losses/loans, net 0.96% 0.99%
Book value per share $ 8.65 $ 8.59
</TABLE>
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