[SWVA BANCSHARES, INC. LETTERHEAD]

                                  NEWS RELEASE

SWVA Bancshares, Inc.                     Subject:    Annual Meeting of
302 Second St., SW                                    Stockholders
Roanoke, VA 24011-1597

                                          Contact:    B. L. Rakes
                                                      President
                                                      (540) 343-0135

                                          October 23, 1996

FOR IMMEDIATE RELEASE
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Roanoke, Virginia -- (NDQS "pink sheets" trading symbol: SWVB)

SWVA Bancshares,  Inc., the parent savings and loan holding company of Southwest
Virginia Savings Bank, FSB,  Roanoke,  Virginia,  announced that its 1996 Annual
Meeting of Stockholders was held today. At the meeting,  James H. Brock, Glen C.
Combs,  and Michael M.  Kessler  were elected as  directors.  Stockholders  also
ratified the appointment of Cherry Bekaert & Holland L.L.P., as auditors for the
Company for the June 30, 1997 fiscal year.

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