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 4, 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 July 27, 2000 its financial results
for the period ended June 30, 2000. The financial results are detailed in the
Company's Press Release dated July 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: August 4, 2000 /s/ A. Wayne Lewis
------------------------------------
A. Wayne Lewis, Executive Vice President
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<PAGE>
FOR RELEASE 5:00 p.m. July 27, 2000
-----------------------------------
VALLEY FINANCIAL CORPORATION EXHIBIT A
---------
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 EARNINGS
ROANOKE, VIRGINIA. July 27, 2000 -- Roanoke-based Valley Financial Corporation
announced today its consolidated financial results. For the three months ended
June 30, 2000 Valley Financial reported net income of $360,000 or $.36 per share
compared with $213,000 or $.21 per share for the same three months of 1999, a
69% increase. The Company's return on average total assets was 1.00% for 2000's
second quarter, and its return on average shareholders' equity was 13.71%. These
profitability ratios represent significant increases from the 0.73% and 9.18%,
respectively, reported for the three months ended June 30, 1999.
At June 30, 2000 the Company's total assets were $151,953,000, total deposits
were $121,507,000, total loans stood at $106,934,000 and total shareholders'
equity was $10,717,000 (exclusive of unrealized gains/losses on investment
securities). Compared with June 30, 1999 the Company experienced increases of
$29,358,000 or 24% in total assets, $23,331,000 or 24% in total deposits and
$23,250,000 or 28% in total loans over the twelve-month period. With total
capital at June 30, 2000 representing 12.1% of risk-adjusted total assets, the
Company exceeds the regulatory minimums to be considered "well capitalized."
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<PAGE>
Press Release
Valley Financial Corporation
July 27, 2000
Page 2
Earnings for the first half of 2000 showed significant growth as well. Net
income was $684,000 or basic earnings per share of $.68 compared with $414,000
or $.41 per share for the same period in 1999, a 65% increase. Return on average
total assets was 0.97% in 2000's first six months versus 0.74% in 1999, and
return on average total equity was 13.22% in 2000 against 9.07% in 1999.
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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<PAGE>
VALLEY FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30 December 31 June 30
2000 1999 1999
---------- -------------- -----------
(in thousands, except share data)
<S> <C> <C> <C>
Assets
Cash and due from banks $5,147 $4,027 $3,243
Money market investments 1,384 6,105 82
Securities available-for-sale 34,910 31,964 32,152
Loans 106,934 91,390 83,684
Less allowance for loan losses and unearned fees (1,106) (942) (869)
------- ----- -----
Total net loans 105,828 90,448 82,815
Premises and equipment 2,559 2,629 2,593
Other assets 2,125 1,983 1,710
------ ------ -----
Total assets $151,953 $137,156 $122,595
========= ========= ========
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $19,382 $14,328 $12,832
Interest bearing demand, savings & money maket deposits 30,689 32,958 31,632
Time deposits greater than $100,000 14,157 12,974 10,484
Other deposits 57,279 55,217 43,228
------- ------- ------
Total deposits 121,507 115,477 98,176
Short term borrowings 3,000 0 4,597
Securities sold under agreements to repurchase 4,167 992 0
Subordinated Capital Note 2,300 0 0
Federal Home Loan Bank advances 10,000 10,000 10,000
Other liabilities 1,245 1,632 961
------ ------ -----
Total liabilities 142,219 128,101 113,734
------- -------- -------
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 June 30, 2000,
1,013,207 at December 31, 1999 and 1,013,207
at June 30, 1999 9,099 9,099 9,099
Accumulated retained earnings 1,618 934 306
Accumulated other comprehensive loss (983) (978) (544)
----- ----- ------
Total shareholders' equity 9,734 9,055 8,861
------ ------ ------
Total liabilities and shareholders' equity $151,953 $137,156 $122,595
========= ========= ========
Balance Sheet Ratios:
Nonperforming loans/total loans 0.38% 0.10% 0.27%
Loans past due > 90 days/total loans 0.00% 0.00% 0.00%
Allowance for loan losses/loans, net 1.01% 1.01% 1.01%
Book value per share, exclusive of accumulated other $10.58 $9.90 $9.28
comprehensive loss
</TABLE>
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<PAGE>
VALLEY FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended Ended
June 30 June 30
--------------------------------------------------------------------------
2000 1999 2000 1999
---------- --------- ------- -------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Interest Income $2,888 $2,097 $5,505 $4,022
Interest Expense 1,494 1,064 2,810 2,022
----- ----- ----- -----
Net interest income 1,394 1,033 2,695 2,000
Provision for loan losses 99 54 163 127
-- -- --- ---
Net interest income after provision for loan losses 1,295 979 2,532 1,873
Noninterest income 111 72 195 146
Noninterest Expense 901 763 1,773 1,458
--- --- ----- -----
Net income before taxes $505 $288 $954 $561
---- ---- ---- ----
Provision for income taxes $145 $75 $270 $147
---- --- ---- ----
Net income $360 $213 $684 $414
==== ==== ==== ====
Net income per share $0.36 $0.21 $0.68 $0.41
===== ===== ===== =====
Performance Ratios:
Return on average total assets 1.00% 0.73% 0.97% 0.74%
Return on average total shareholders' equity 13.71% 9.18% 13.22% 9.07%
Yield on average earning assets (TEY) 8.45% 7.72% 8.30% 7.77%
Cost of funds 4.47% 3.98% 4.33% 4.00%
Net interest margin 4.16% 3.88% 4.14% 3.94%
Overhead efficiency ratio 57.94% 66.52% 59.26% 65.47%
</TABLE>
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