EXHIBIT 99
Press Release
NEWS RELEASE
Contact: B. L. Rakes, President & CEO
Mary G. Staples, PFO
(540) 343-0135
Date: May 3, 1996
FOR IMMEDIATE RELEASE
SWVA BANCSHARES, INC. ANNOUNCES THIRD QUARTER EARNINGS
Roanoke, Virginia, May 3, 1996: SWVA Bancshares, Inc., the holding company
of Southwest Virginia Savings Bank, FSB, Roanoke, Virginia, announced earnings
for the third quarter of fiscal year 1996.
The net income for the nine months ended March 31, 1996 was $226,000 or
$0.44 per share.
Net income increased $20,000 or 25.64% from $78,000 for the three months
ended March 31, 1995 to $98,000 for the three months ended March 31, 1996. The
increase was due to nonrecurring gain on sale of loans partially offset by
reduced net interest income, noninterest expense and tax provision.
Interest income increased $62,000, or 5.33% from $1,164,000 for the three
months ended March 31, 1995 to $1,226,000 for the three months ended March 31,
1996. The increase was mainly a result of the increase in the interest rates
earned on adjustable rate mortgages.
Interest expense increased $73,000 or 12.54% from $582,000 for the three
months ended March 31, 1995 to $655,000 for the three months ended March 31,
1996. The increase was due mainly to an increase in the cost of deposits.
Net interest income decreased by $11,000 from $582,000 for the three
months ended March 31, 1995 to $571,000 for the three months ended March 31,
1996 due mainly to an increase in deposits and a decrease in loans receivable.
The Bank made no provision for credit losses for the three months ended
March 31, 1996. The allowance for credit losses is $194,000. Management reviews
the Bank's loan portfolio and future additions may become necessary based upon
changing economic conditions, increases in the loan portfolio or changes in the
underlying collateral of the loan portfolio.
There was one non-performing loan on a single family home on March 31, 1996 in
the amount of $95,000. This loan was sold at foreclosure to a third party and as
of March 31, 1996, final settlement had not been made.
Non-interest income increased by $69,000, or 109.52% from $63,000 for the
three months ended March 31, 1995 to $132,000 for the three months ended March
31, 1996. This was mainly the result of an increase of $66,000 on gains on loans
sold in the secondary market for the three months ended March 31, 1996.
Non-interest expense increased by $12,000, or 2.26% from $531,000 for the
three months ended March 31, 1995 to $543,000 for the three months ended March
31, 1996, mainly due to an increase in personnel expenses associated with the
MSBP.
The Company's assets and stockholders' equity amounted to $66.7 million
and $8.5 million, respectively, at March 31, 1996.
Southwest Virginia Savings Bank, FSB is a federally chartered savings bank,
the deposits of which are insured by the FDIC to the fullest extent provided by
law. The Bank is headquartered in Roanoke, Virginia and operates 5 full-service
banking facilities and a mortgage origination office serving Roanoke City,
Roanoke County, Salem City and adjacent counties. The Bank has served the
community since 1927.
The Bank exceeds all current regulatory capital ratio requirements and
continues to meet the "well capitalized" regulatory definition, the highest such
rating.
SWVA Bancshares, Inc's common stock shares are listed over-the-counter
through the National Daily Quotation System "Pink Sheets" under the symbol
"SWVB".
SWVA BANCSHARES, INC.
(Dollars in thousands, except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Nine Months Ended
March 31
1996 1995
----- -----
(unaudited)
Interest income 3,688 3,334
Interest expense 1,987 1,653
----- -----
Net interest income 1,701 1,681
Provision for credit losses 0 0
----- -----
Net interest income after
provision for credit losses 1,701 1,681
Noninterest income 351 230
Noninterest expense 1,682 1,487
----- -----
Income before income taxes 370 424
Provision for income taxes 144 151
----- -----
Net Income $ 226 $ 273
===== =====
Earnings per common share $ 0.44 0.52 (1)
Return on average assets .45% .58%
Return on average equity 3.27% 5.34%
Interest rate spread 3.24% 3.66%
Net interest margin 3.65% 3.86%
Noninterest expense to average assets 3.37% 3.18%
CONDENSED CONSOLIDATED BALANCE SHEETS
Mar 31 June 30
1996 1995
------ -------
(unaudited)
Cash and investments $ 6,669 $ 3,891
Mortgage-backed and related securities 7,951 8,086
Loans held for sale 1,333 859
Loans receivable, net 48,545 51,064
Property and equipment, net 1,674 1,714
Other assets 550 651
------- -------
Total assets $66,722 $66,265
====== ======
Deposits $57,448 $54,642
Advances FHLB 0 1,800
Accrued expenses and other liabilities 747 510
Stockholders' Equity 8,527 9,313
------ ------
Total liabilities and stockholders' equity $66,722 $66,265
====== ======
Nonaccrual and 90 days past due loans $ 95 $ 60
Total nonperforming assets $ 95 $ 60
====== ======
Allowance for credit losses
to nonperforming assets 204.21% 323.33%
Nonperforming loans to total loans .19% .12%
Nonperforming assets to total assets .14% .09%
Book value per share $15.70 17.59
(1) Earnings per share have been determined by the weighted number of shares
which would have been outstanding if the conversion had occurred on the first
day of the fiscal year rather than on October 7, 1994.