EXHIBIT 99
Press Releases
SWVA Bancshares, Inc
(Over-the Counter: SWVB) Contact: B. L. Rakes, President
302 Second St., SW 540-343-0135
Roanoke, VA 24011
For Immediate Release
July 26, 1996
SWVA BANCSHARES, INC.
REGULATORY APPROVAL FOR STOCK REPURCHASE
Roanoke, Virginia--July 26, 1996--B. L. Rakes, President of
SWVA Bancshares, Inc., the holding company of Southwest
Virginia Savings Bank, FSB, announced today that it had
received the necessary approval from the Office of Thrift
Supervision ("OTS") to repurchase up to 5% (27,160 shares) of
the Corporation's Common Stock. It is anticipated that such
shares of Common Stock will be purchased in open market
transactions between now and October 7, 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 exceeds all current regulatory capital ratio
requirements and continues to meet the "well capitalized"
regulatory definition, the highest such rating.
The Corporation's Common Stock is traded over-the-counter
through the National Daily Quotation System "Pinksheet"
published by the National Quotation Bureau, Inc.
NEWS RELEASE
Contact: B. L. Rakes, President & CEO
Mary G. Staples, PFO
(540) 343-0135
Date: July 25, 1996
FOR IMMEDIATE RELEASE
SWVA BANCSHARES, INC. ANNOUNCES FOURTH QUARTER EARNINGS
Roanoke, Virginia, July 25, 1996: SWVA Bancshares, Inc., the
holding company of Southwest Virginia Savings Bank, FSB, Roanoke,
Virginia, announced earnings for the fourth quarter of fiscal year
1996.
The net income for the twelve months ended June 30, 1996 was
$306,000 or $0.60 per share.
Net income increased $49,000 or 158.06% from $31,000 for the
three months ended June 30, 1995 to $80,000 for the three months
ended June 30, 1996. The increase was due to nonrecurring gain on
sale of loans and increased net interest income less increased tax
provision.
Interest income increased $13,000, or 1.08% from $1,205,000
for the three months ended June 30, 1995 to $1,218,000 for the
three months ended June 30, 1996. The increase was mainly a result
of the increase in the interest rates earned on adjustable rate
mortgages.
Interest expense decreased $26,000 or 3.93% from $661,000 for
the three months ended June 30, 1995 to $635,000 for the three
months ended June 30, 1996. The decrease was due mainly to the
payoff of advances with the Federal Home Loan Bank.
Net interest income increased by $39,000 from $544,000 for the
three months ended June 30, 1995 to $583,000 for the three months
ended June 30, 1996 due mainly to an increase in interest rates
earned on adjustable rate mortgages and the payoff of borrowed
funds.
The Bank made no provision for credit losses for the three
months ended June 30, 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 were no non-
performing loans on June 30, 1996.
Non-interest income increased by $19,000, or 22.35% from
$85,000 for the three months ended June 30, 1995 to $104,000 for
the three months ended June 30, 1996. This was mainly the result
of an increase of $20,000 on gains on loans sold in the secondary
market for the three months ended June 30, 1996.
Non-interest expense increased by $2,000, or .36% from
$558,000 for the three months ended June 30, 1995 to $560,000 for
the three months ended June 30, 1996.
The Company's assets and stockholders' equity amounted to
$67.0 million and $8.7 million, respectively, at June 30, 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
For Years Ended
June 30
1996 1995
(unaudited)
Interest income 4,906 4,539
Interest expense 2,622 2,314
------ ------
Net interest income 2,284 2,225
Provision for credit losses 0 1
------ ------
Net interest income after
provision for credit losses 2,284 2,224
Noninterest income 455 315
Noninterest expense 2,242 2,045
------ ------
Income before income taxes 497 494
Provision for income taxes 191 190
------ ------
Net Income $ 306 304
====== ======
Earnings per common share $ 0.60 0.57 (1)
Return on average assets .46% .47%
Return on average equity 3.51% 3.83%
Interest rate spread 3.27% 3.37%
Net interest margin 3.68% 3.65%
Noninterest expense to average assets 3.36% 3.12%
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30 June 30
1996 1995
(unaudited)
Cash and investments $ 9,103 $ 3,891
Mortgage-backed and related securities 7,939 8,086
Loans held for sale 985 859
Loans receivable, net 46,757 51,064
Property and equipment, net 1,662 1,714
Other assets 541 651
------ ------
Total assets $66,997 66,265
====== ======
Deposits $57,643 $54,642
Advances FHLB 0 1,800
Accrued expenses and other liabilities 669 510
Stockholders' Equity 8,675 9,313
------ ------
Total liabilities and stockholders' equity $66,987 $66,265
====== ======
Nonaccrual and 90 days past due loans $ 0 $ 60
Total nonperforming assets $ 0 $ 60
====== ======
Allowance for credit losses
to nonperforming assets .00% 323.33%
Nonperforming loans to total loans .00% .12%
Nonperforming assets to total assets .00% .09%
Book value per share $15.97 (2) 16.32 (2)(3)
(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.
(2) Book value per share has been calculated by taking Stockholders' Equity
and dividing by the number of shares outstanding. Share outstanding on
June 30, 1995 were 570,590. Shares outstanding on June 30, 1996 were
543,190.
(3) Book value per share was reported on periods prior to March, 1996 by
taking Stockholders' Equity and dividing by the number of shares
outstanding less unallocated ESOP shares. Using this calculation, the
book value was $17.59 on June 30, 1995.