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: May 3, 2000
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)
<PAGE>
ITEM 5. OTHER EVENTS.
Valley Financial Corporation (the "Company"), the holding company for
Roanoke, VA-based Valley Bank, announced on April 27, 2000 its financial results
for the period ended March 31, 2000. The financial results are detailed in the
Company"s Press Release dated April 27, 2000 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: May 3, 2000 /s/ A. Wayne Lewis
----------------------------------------
A. Wayne Lewis, Executive Vice President
<PAGE>
FOR RELEASE 6:00 P.M. APRIL 27, 2000 EXHIBIT A
- ------------------------------------
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 INCREASE 61%
ROANOKE, VIRGINIA. April 27, 2000 -- Roanoke-based Valley Financial Corporation
announced today its consolidated financial results. For the three months ended
March 31, 2000 Valley Financial reported net income of $324,000 or $.32 per
share compared with $201,000 or $.20 per share for the same three months of
1999, a 61% increase. The Company"s return on average total assets was 0.95% for
2000's first three months, and its return on average shareholders" equity was
12.70%. These profitability ratios represent significant increases from the
0.76% and 8.95%, respectively, reported for the three months ended March 31,
1999.
At March 31, 2000 the Company's total assets were $141,055,000, total deposits
were $113,297,000, total loans stood at $98,745,000 and total shareholders'
equity was $9,368,000. Compared with March 31, 1999 the Company experienced
increases of $22,996,000 or 19% in total assets, $10,486,000 or 10% in total
deposits and $21,096,000 or 27% in total loans over the twelve-month period.
With total capital at March 31, 2000 representing 10.4% of risk-adjusted total
assets, the Company exceeds the regulatory minimums to be considered "well
capitalized."
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VALLEY FINANCIAL CORPORATION
PRESS RELEASE
APRIL 27, 2000
PAGE 2
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
four full-service offices at 36 Church Avenue, SW and 2203 Crystal Spring
Avenue, SW in Roanoke City, 4467 Starkey Road, SW in Roanoke County and 8 East
Main Street in the City of Salem.
Valley Bank recently entered into a contract with First Union National Bank to
acquire First Union's existing branch office location at 1518 Hershberger Road,
NW in the City of Roanoke. Valley Bank expects to complete the purchase in late
summer and reopen the facility under the Valley Bank name in early 2001.
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>
March 31 December 31 March 31
2000 1999 1999
---------------- ------------------ -----------------
(in thousands, except share data)
<S> <C> <C> <C>
Assets
Cash and due from banks $3,533 $4,027 $2,705
Money market investments 30 6,105 10,523
Securities available-for-sale 35,137 31,964 24,623
Loans 98,745 91,390 77,649
Less allowance for loan losses and unearned fees (1,007) (942) (817)
Total net loans 97,738 90,448 76,832
Premises and equipment 2,597 2,629 2,177
Other assets 2,020 1,983 1,199
-------- -------- --------
Total assets $141,055 $137,156 $118,059
======== ======== ========
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $15,532 $14,328 $24,143
Interest bearing demand, savings & money maket deposits 31,929 32,958 33,396
Time deposits greater than $100,000 12,358 12,974 8,593
Other deposits 53,478 55,217 36,679
-------- -------- --------
Total deposits 113,297 115,477 102,811
Short term borrowings 3,589 0 0
Securities sold under agreements to repurchase 3,264 992 0
Federal Home Loan Bank advances 10,000 10,000 5,000
Other liabilities 1,537 1,632 996
-------- -------- --------
Total liabilities 131,687 128,101 108,807
-------- -------- --------
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 1,013,207 at March 31, 2000, 1,013,207 at
December 31, 1999, and 1,013,207 at March 31, 1999 9,099 9,099 9,099
Accumulated retained earnings 1,258 934 93
Accumulated other comprehensive income (loss) (989) (978) 60
-------- -------- --------
Total shareholders' equity 9,368 9,055 9,252
-------- -------- --------
Total liabilities and shareholders' equity $141,055 $137,156 $118,059
======== ======== ========
Balance Sheet Ratios:
Nonperforming loans/total loans 0.93% 0.10% 0.00%
Loans past due > 90 days/total loans 0.00% 0.00% 0.00%
Allowance for loan losses/loans, net 1.00% 1.01% 1.02%
Book value per share, exclusive of accumulated other $10.22 $9.90 $9.07
comprehensive income (loss)
<CAPTION>
VALLEY FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months
Ended
2000 1999
----------------- ----------------
<S> <C> <C>
Interest Income $2,617 $1,925
Interest Expense 1,316 958
----- -----
Net interest income 1,301 967
Provision for loan losses 64 73
----- -----
Net interest income after provision for loan losses 1,237 894
Noninterest income $84 $74
Noninterest Expense 872 695
----- -----
Net income before taxes $449 $273
----- -----
Provision for income taxes $125 $72
----- -----
Net income $324 $201
----- -----
Net income per share $0.32 $0.20
----- -----
Performance Ratios:
Return on average total assets 0.95% 0.76%
Return on average total shareholders' equity 12.70% 8.95%
Yield on average earning assets (TEY) 8.13% 7.84%
Cost of funds 4.19% 4.01%
Net interest margin 4.12% 4.01%
Overhead efficiency ratio 60.72% 66.76%
</TABLE>
