Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 29, 1994 TAG: 9407290070
SECTION: BUSINESS PAGE: A11 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The Matzes were among about a dozen potential investors in Valley Bank who attended an informational meeting Thursday afternoon at the offices of Scott & Stringfellow Inc. Another eight or nine people attended a session Wednesday morning.
"It's really exciting," Dody Matze, a well-known musician, said of the plans to establish Roanoke's only locally owned bank, hopefully by the end of this year. She also said the suburban branch at Starkey Road and Fallowater Lane will be convenient to her home.
"It's quite an endeavor," said Calvin Lilly, who also indicated he plans to buy shares in the new bank. A Roanoke-based bank "is very important to the valley," said Lilly, a business consultant who worked several years ago as a commercial loan officer for the former Dominion Bank.
James B. Massey III, a Roanoke lawyer, said he attended Thursday's meeting to gather information for some clients who are interested in buying stock. But he said he was there in two other capacities as well. Massey may invest himself and he could become a customer.
The meeting lasted about 45 minutes. Scott & Stringfellow has scheduled six more presentations through Aug. 17.
William Nash, manager of the Roanoke office of Scott & Stringfellow, emphasized that the stock in the proposed bank's parent, Valley Financial Corp., is a growth-oriented investment because the bank has no plans to pay dividends in the foreseeable future.
The stock is meant for people who are looking for long-term capital appreciation because it will take time for the bank to pay off, he said.
Invested money will be held in escrow by Wachovia Bank of Winston-Salem, N.C., until the minimum subscription of 800,000 shares or $8 million is reached. At that point, Nash said, the bank will be established, but stock sales will continue in hopes of issuing 1.2 million shares or raising $120 million.
Minimum subscription is 100 shares at $10 a share. The maximum for any one person is five percent of the shares sold.
Nash said the bank's 14 founders are seeking small investors who will also become customers. They want as broad-based ownership in the valley as possible, he said.
The company's founders have pledged to buy a total of 301,750 shares worth more than $3 million. They would then own a quarter of the bank if the $120 million goal is reached.
Guy W. Byrd Jr., president of Valley Financial, stressed the experience of the management even though the bank will be new. And he said many talented bankers live in the Roanoke Valley and are looking for work.
by CNB