Valley Financial Corporation

Exhibit 99.1

FOR RELEASE 8:30 a.m. October 25, 2013

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
(540) 342-2265

VALLEY FINANCIAL CORPORATION REPORTS 20% INCREASE IN EARNINGS PER SHARE; DECLARES QUARTERLY CASH DIVIDEND ROANOKE, VIRGINIA (October 25, 2013) -- Valley Financial Corporation (NASDAQ Capital Market- VYFC) announced today its consolidated financial results for the third quarter of 2013 and reported net income for the three months ended September 30, 2013 of $1,929,000, which is on par with the record net income reported for the second quarter of 2013 of $1,928,000. The third quarter results represent an increase of $232,000 or 14% over the $1,697,000 net income reported for the same quarter last year.

After deducting dividends and discount accretion on preferred stock from net income, net income available to common shareholders increased 21% to $1,762,000 as compared to $1,452,000 for the prior year's third quarter while diluted earnings per share increased 20% to $0.36 as compared to $0.30. In comparison to the linked quarter, net income available to common shareholders increased 2% from
$1,730,000 to $1,762,000. The Company's earnings for the three-month period produced an annualized return on average total assets of 0.96% and an annualized return on average shareholder's equity of
11.99% as compared to 0.86% and 10.54% for the prior year's quarter.

Select highlights:

• Net income of $1.9 million and $0.36 per diluted share, producing a return on average total assets of 0.96% and annualized return on average shareholder's equity of 11.99%.
• Increase in net interest margin of 15 basis points to 3.73% as compared to the 3.58% reported for the same quarter last year.
• Nonperforming assets ("NPAs") decreased $2.4 million, from $30.6 million at June 30, 2013 to
$28.2 million. This resulted in a 26 basis point reduction in the Company's NPAs as a percentage of total assets, from 3.80% at June 30, 2013 to 3.54% at September 30, 2013.
• The Company's Allowance for Loan and Lease Losses ("ALLL") to total loans decreased from
1.45% at June 30, 2013 to 1.33% at September 30, 2013.
• Loan demand continued to improve with an increase in average loans outstanding of $16.2 million or 3% from the same period last year and $5.9 million in comparison to the linked quarter.
www .my valleybank .com

Mailing Address: PO Box 2740