PRESS RELEASE

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SWVA Bancshares, Inc.   Contact:    B.L. Rakes, President
(Over-the-Counter:  SWVB)           540-343-0135

302 Second Street, S.W.
Roanoke, Virginia 24011

                                                          For Immediate Release
                                                               June 14, 1996

                              SWVA BANCSHARES, INC.
               Authorization of Stock Repurchase Program by Board

      Roanoke,  Virginia  --  June  14,  1996  --  SWVA  Bancshares,  Inc.  (the
"Company") (Over- the-Counter:  SWVB), the holding company of Southwest Virginia
Savings Bank, FSB, has announced its intention to repurchase up to 27,160 shares
of the Company's common stock. Mr. B.L. Rakes,  President,  said the Company has
been  authorized  by its Board of Directors to repurchase up to 27,160 shares or
5% of its 543,190  outstanding shares of common stock. The Company has filed the
necessary  regulatory  application  for  permission  to initiate the  repurchase
program. There is no assurance that the application will be approved or that the
full 5% will be repurchased.

      The  repurchases  are  expected  to be made in  open-market  transactions,
subject to the availability of stock,  market  conditions,  the trading price of
the stock and the Company's financial performance.  Such repurchased shares will
become authorized but unissued shares and will be utilized for general corporate
and other  purposes,  including  the issuance of shares in  connection  with the
exercise of stock options. The repurchase program is expected to be completed by
October 7,  1996,  at which time the  Company  may  terminate  or  continue  the
program.  As of June 4, 1996,  the last reported  trade of the Company's  common
stock was at a price of $15.40 per share.

      At March 31, 1996,  the Company  reported  total  consolidated  assets and
consolidated   stockholders'   equity  of  $66.7   million  and  $8.5   million,
respectively.  Southwest  Virginia  Savings Bank, FSB operates  through its main
office  located in Roanoke and through  four full  service  branches  located in
Roanoke,  Vinton and Salem and one loan production office in Roanoke. The Bank's
deposits are insured up to legal maximum limits by the Federal Deposit Insurance
Corporation.

302 Second Street, S.W.    Roanoke, Virginia  24011-1597    (703) 343-0135