Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 18, 1995 TAG: 9507180058
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Short
Guy W. Byrd Jr., president of Valley Bank, called the sale "a very strong performance."
The sale at $10 a share ended Saturday, and the stock now is available on the open market from someone who already owns shares. It trades over the counter. For such thinly traded stocks, prices are quoted on the paper "pink slips" distributed by the National Association of Securities Dealers, rather than on electronic exchanges.
Scott & Stringfellow Inc. was the lead broker making a market in the stock during the initial sale, but now shares will be traded freely by any broker.
Under banking regulations, a bank with a national charter must raise capital of at least $4 million in order to open one office and more than that to open two branches, as Valley Bank plans.
The bank has an office at 36 Church Ave. S.W. in downtown Roanoke. A branch on Starkey Road in Roanoke County is scheduled to open in September.
A spokesman for Wheat First Butcher Singer, a Roanoke broker dealing in numerous locally based companies, said no shares were traded on the opening day for the stock Monday. Brokers were quoting a spread of $9.50 a share to sell and $10.25 a share to buy.
Byrd said the value now is the price at which a willing seller and a willing buyer can reach agreement.
by CNB