Valley Financial Corporation▲
FOR RELEASE 4:00 p.m. March 12, 2010
VALLEY FINANCIAL CORPORATION
36 Church Avenue, S.W.
Roanoke, Virginia 24011
For Further Information Contact:
Ellis L. Gutshall, President and Chief Executive Officer
Kimberly B. Snyder, Executive Vice President and Chief Financial Officer
VALLEY FINANCIAL CORPORATION REVISES 2009 FOURTH QUARTER LOAN LOSS PROVISION
ROANOKE, VIRGINIA (March 12, 2010) -- Valley Financial Corporation (NASDAQ Capital Market-VYFC) today announced that it revised its fourth quarter loan loss provision to $5.3 million from the previously announced $2.6 million. After the revision, the Company’s total allowance for loan losses stood at $14.6 million and 2.56% of total loans, as compared to $14.6 million and 2.54% of total loans previously announced. The Company increased its loan loss provision for general reserves by a total of $2.7 million; $1.2 million as a result of the impact from additional charge-offs totaling $2.7 million of previously recognized collateral impairments in its residential and commercial real estate categories and $1.5 million as the result of a new environmental factor to account for concentration risk for its large borrower relationships. These revisions are in response to the more conservative approach regulators are taking towards loan loss reserves in this difficult economic environment.
As a result of the revisions, the Company’s ratio of non-performing assets as a percentage of total assets decreased to 4.36% as compared to 5.10% previously reported. This compares to 1.48% reported at December 31, 2008. Net charge-offs as a percentage of average loans receivable for the year ended December 31, 2009 was 1.41% compared to 0.94% previously reported and 0.12% for last year. Net charge-offs for the year ended December 31, 2009 totaled $8.2 million as compared to $614,000 for 2008.
Ellis L. Gutshall, President and CEO commented, “The current economic environment has severely impacted businesses and financial institutions throughout the country. While today’s environment continues to require stringent measures, we are confident in our ability to navigate through the effects of this difficult economic environment. Pre-provision earnings remain strong, core deposits continue to experience double-digit annualized growth rates and our capital levels remain well above the levels deemed well-capitalized by the regulatory agencies.”
The following information was filed by Valley Financial Corp (VYFC) on Friday, March 12, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.