
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 15, 1995                   TAG: 9504170104
SECTION: BUSINESS                    PAGE: A-6   EDITION: METRO 
SOURCE: MAG POFF
DATELINE:                                 LENGTH: Short

BANK SHAREHOLDERS PLAN INITIAL MEETING

Shareholders of Valley Financial Corp. will hold their first annual meeting Thursday - at a hotel across the street from where ground was broken Friday for the bank's first branch.

The 750 to 800 shareholders of the new Valley Bank are to meet at 6 p.m. at Holiday Inn-Tanglewood. The uncontroversial agenda includes voting for a slate of directors and a reception.

Grading work began Friday on the Starkey Road site where Valley Bank plans to build its branch.

Valley Bank will open in May at the former CorEast Savings Bank building at Church Avenue and First Street in downtown Roanoke. The branch is expected to open in late summer at 4467 Starkey Road.

Because it is still in organization, the bank has not issued an annual report to shareholders. But its annual report to the Securities and Exchange Commission said it had issued 815,352 shares of common stock at $10 per share through March. Of that number, 443,752 shares were held by people outside of the board of directors.

The report said the bank expects to have a deficit of $434,000 when it opens and then operate at a loss for an unknown period. It reported the annual rent at the downtown location at $82,370 a year. It estimated it will spend $260,000 on the renovation and $344,000 on furniture and equipment.

Valley Bank said it paid $272,250 for the one-acre tract off Virginia 419. It projects spending $425,000 on construction and $200,500 on equipment for the branch..

Year-end assets totaled $577,227, but that was prior to the bank's access to the stock purchase funds.

by CNB