-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, G0Wa+1valkQM+Lo8g1EqWq1i+Yk7I4SEC0mxQJeTCK3iHWOB3OjXBQd/A+zlYdxJ BHLhsG6kD2LSyFUWJpForA== 0000950168-02-002972.txt : 20021018 0000950168-02-002972.hdr.sgml : 20021018 20021018145108 ACCESSION NUMBER: 0000950168-02-002972 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021018 ITEM INFORMATION: Other events FILED AS OF DATE: 20021018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VALLEY FINANCIAL CORP /VA/ CENTRAL INDEX KEY: 0000921590 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 541702380 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28342 FILM NUMBER: 02792566 BUSINESS ADDRESS: STREET 1: 36 CHURCH AVENUE SW CITY: ROANOKE STATE: VA ZIP: 24011 BUSINESS PHONE: 5403422265 MAIL ADDRESS: STREET 1: 36 CHURCH AVENUE SW CITY: ROANOKE STATE: VA ZIP: 24001 8-K 1 d8k.txt FORM 8-K 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: October 18, 2002 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) Item 5. Other Events. Valley Financial Corporation (the "Company"), the holding company for Roanoke, VA-based Valley Bank, announced on October 17, 2002 its financial results for the period ended September 30, 2002. The financial results are detailed in the Company's Press Release dated October 17, 2002 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: October 18, 2002 /s/ A. Wayne Lewis ---------------------------------------- A. Wayne Lewis, Executive Vice President FOR RELEASE 5:00 p.m. October 17, 2002 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 REPORTS RECORD QUARTERLY EARNINGS ROANOKE, VIRGINIA. October 17, 2002 -- Roanoke-based Valley Financial Corporation announced today its consolidated financial results, including the highest quarterly net income in its history. For the three months ended September 30, 2002 Valley Financial reported net income of $578,000 compared with $455,000 for the same three months of 2001, a 27% increase. Fully diluted earnings per share were $.30 in 2002's third quarter versus $.24 in 2001. The Company's return on average total assets was 1.00% for the third quarter and its return on average shareholders' equity was 12.91%, compared with 1.05% and 11.59%, respectively, reported for the same period in 2001. At September 30, 2002 Valley Financial's total assets were $239,747,000, total deposits were $171,804,000, total loans stood at $173,456,000 and total shareholders' equity was $18,466,000. Compared with September 30, 2001 the Company experienced increases of $66,038,000 or 38% in total assets, $36,621,000 or 27% in total deposits and $37,287,000 or 27% in total loans over the twelve-month period. With total capital representing over 10% of risk-adjusted total assets, the Company meets the regulatory minimum to be considered "well capitalized." - MORE - Press Release Valley Financial Corporation October 17, 2002 Page 2 Net income for the first nine months of 2002 was $1,567,000 compared with $1,142,000 for the same period in 2001, an increase of 37%. Fully diluted earnings per share were $.83 year to date versus $.61 for the same period in 2001. Return on average total assets was 0.98% in the nine months ended September 30, 2002 versus 0.91% in 2001, and return on average total equity was 12.16% in 2002 against 10.00% in 2001. Ellis L. Gutshall, President and Chief Executive Officer of Valley Financial, stated "The quarter ended September 30 was the third consecutive quarter in 2002 that we reported outstanding increases in earnings and assets. This exceptional financial performance is driven in large part by continued strong growth in earning assets, coupled with a relatively stable interest rate environment compared to last year. The net interest margin for the third quarter was 3.94%, up from 3.88% for the same time last year, and year to date was 4.14% versus 3.75% last year" Noting that the national economy remains fragile, Gutshall said "We have seen some economic slowdown this year in the local economy, but not to the same extent as nationally. The Roanoke Valley economy typically does not see the same growth rates relative to the nation or other areas in Virginia in an expanding economy, but on the other hand we tend to experience less slowdown in an economic contraction. This is reflected in our asset quality ratios, which have improved markedly from their very respectable levels of a year ago, and compare quite favorably to peers. As of September 30, 2002 non-performing loans were only 0.11% of net loans, and 0% of our loans were past due more than ninety days." - MORE - Press Release Valley Financial Corporation October 17, 2002 Page 3 Valley Financial Corporation is the holding company for Valley Bank, which opened in 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 currently operates from six full-service offices at 36 Church Avenue, 2203 Crystal Spring Avenue and 1518 Hershberger Road in Roanoke City, 4467 Starkey Road in Roanoke County, 8 East Main Street in the City of Salem and 1003 Hardy Road in the Town of Vinton. Construction is expected to begin soon on a seventh full-service office at the intersection of Route 419 and Keagy Road, next to Lewis-Gale Hospital in the City of Roanoke. The bank's Internet site at www.myvalleybank.com is available for online banking and corporate information. 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. Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially including, without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Valley Financial Corporation's recent filings with the Securities and Exchange Commission, included but not limited to its Annual Report on Form 10-KSB and its other periodic reports. - END - Press Release Valley Financial Corporation October 17, 2002 Page 4 VALLEY FINANCIAL CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share amounts) September 30 December 31 September 30 2002 2001 2001 ---- ---- ---- Total assets $239,747 $193,868 $173,709 Total loans 173,456 147,573 136,169 Investments 51,726 33,265 26,650 Deposits 171,804 138,866 135,183 Borrowed funds 47,914 37,171 20,387 Stockholders' equity 18,466 16,304 16,052 Non-performing assets to net loans 0.11% 0.37% 1.09% and foreclosed properties Loans past due more than 90 days to 0.00% 0.02% 0.73% total loans Allowance for loan losses to net loans 1.12% 1.00% 1.02% Book value per share, exclusive of 9.88 9.02 8.71 accumulated other comprehensive income (loss)* * Adjusted as necessary to reflect the 3 - for - 2 stock split effective May 30, 2002 Press Release Valley Financial Corporation October 17, 2002 Page 5 VALLEY FINANCIAL CORPORATION CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------ ------------------ 2002 2001 2002 2001 ---- ---- ---- ---- Interest income 3,547 3,293 $10,132 $9,695 Interest expense 1,454 1,726 4,036 5,320 Net interest income 2,093 1,567 6,096 4,375 Provision for loan losses 118 74 516 194 Net interest income after 1,975 1,493 5,580 4,181 provision for loan losses Noninterest income 191 176 554 444 Noninterest expense 1,357 1,015 3,936 3,035 Net income before taxes 809 654 2,198 1,590 Provision for income taxes 231 199 631 448 Net income $578 $455 $1,567 $1,142 Basic net income per share* $0.32 $0.25 $0.86 $0.63 Diluted net income per share* $0.30 $0.24 $0.83 $0.61 Return on average total assets 1.00% 1.05% 0.98% 0.91% Return on average total equity 12.91% 11.59% 12.16% 10.00% Yield on earning assets (TEY) 6.62% 8.03% 6.82% 8.18% Cost of funds 2.73% 4.42% 2.75% 4.70% Net interest margin 3.94% 3.88% 4.14% 3.75% Overhead efficiency ratio 58.22% 56.80% 58.08% 61.18% * Adjusted as necessary to reflect the 3 - for - 2 stock split effective May 30, 2002 -----END PRIVACY-ENHANCED MESSAGE-----