EXHIBIT 99.1
SWVA [LOGO]
Bancshares, Inc.
NEWS RELEASE
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Contact: B. L. Rakes, President & CEO
540-343-0135
Date: May 1, 1998
FOR IMMEDIATE RELEASE
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SWVA Bancshares, Inc. the holding company of Southwest Virginia Savings Bank,
FSB, Roanoke, Virginia, is pleased to announce that Mr. Don Shilling has become
affiliated with the Savings Bank as Executive Vice President and Chief
Operations Officer. In this capacity he will oversee the operations of the Bank.
Mr. Shilling has been in banking twenty-seven (27) years. For the past ten (10)
years he has been affiliated with Central Fidelity Bank having worked in the
Roanoke, Bedford and Martinsville areas since January 1995 serving as Senior
Vice President and Area Manager.
Bill Rakes, President & CEO, stated that he was pleased to have Mr. Shilling
join the Bank's management team. Mr. Rakes further stated that Southwest
Virginia Savings Bank, FSB, is an independent community bank and Mr. Shilling's
experience will aid the bank in taking advantage of the opportunities becoming
available as larger institutions are sold or consolidated in our market area.
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 with assets of $82 million 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.
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302 Second Street, S.W. - Roanoke, Virginia 24011-1597 - Telephone:(540)343-0135
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SWVA [LOGO]
Bancshares, Inc.
NEWS RELEASE
------------
Contact: B. L. Rakes, President & CEO
Mary G. Staples, PFO
(540) 343-0135
Date: May 1, 1998
FOR IMMEDIATE RELEASE
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SWVA BANCSHARES, INC. ANNOUNCES THIRD QUARTER EARNINGS
Roanoke, Virginia, May 1, 1998: SWVA Bancshares, Inc., the holding
company of Southwest Virginia Savings Bank, FSB, Roanoke, Virginia, announced
earnings for the third quarter of fiscal year 1998.
Net income for the nine months ended March 31, 1998 was $384,000 or
$0.80 per share. Net income for the nine months ended March 31, 1997 was
$172,000. This was an increase of $212,000 or 123.26%. At March 31, 1998, the
return on average assets was .69% and return on average equity was 6.02%.
Net income increased $11,000 or 7.75%, from $142,000 for the three
months ended March 31, 1997 to income of $153,000 for the three months ended
March 31, 1998. The increase in net income was mainly due to an increase in gain
on sale of mortgage loans offset by increased non-interest expenses.
Interest income increased $179,000, or 13.35% from $1.3 million for the
three months ended March 31, 1997 to $l.5 million for the three months ended
March 31, 1998. The increase was mainly a result of interest earned on funds
invested offset by a decrease in the interest received on loans.
Interest expense increased $186,000 or 28.01% from $664,000 for the
three months ended March 31, 1997 to $850,000 for the three months ended March
31, 1998. The increase was due mainly to an
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302 Second Street, S.W. - Roanoke, Virginia 24011-1597 - Telephone:(540)343-0135
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increase in interest paid on deposits and an increase in interest
paid on borrowed funds.
Net interest income decreased by $7,000 or 1.03% from $677,000 for the
three months ended March 31, 1997 to $670,000 for the three months ended March
31, 1998.
The Bank made an addition of $3,000 to the provision for credit losses
for the three months ended March 31, 1998. The allowance for credit losses is
$203,000. No provision for credit losses was made during the quarter ended March
31, 1997. There were no non-performing loans on March 31, 1998.
Non-interest income increased by $45,000, or 59.21% from $76,000 for
the three months ended March 31, 1997 to $121,000 for the three months ended
March 31, 1998. This was mainly the result of an increase in income on loans
sold in the secondary market for the three months ended March 31, 1998.
Non-interest expense increased by $18,000, or 3.40% from $529,000 for
the three months ended March 31, 1997 to $547,000 for the three months ended
March 31, 1998, mainly due to an increase in data processing expenses and
personnel expenses.
The Company's assets and stockholders' equity amounted to $81.5 million
and $8.4 million, respectively, at March 31, 1998.
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
Mar 31
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1998 1997
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(unaudited)
Interest income 4,337 3,942
Interest expense 2,357 1,992
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Net interest income 1,980 1,950
Provision for credit losses 30 0
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Net interest income after
provision for credit losses 1,950 1,950
Noninterest income 291 293
Noninterest expense 1,628 1,959
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Income before income taxes 613 284
Provision for income taxes 229 112
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Net Income $ 384 $ 172
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Basic earnings per common share $ 0.80 0.37
Diluted earnings per common share $ 0.79 0.37
Return on average assets .69% .33%
Return on average equity 6.02% 2.70%
Interest rate spread 3.21% 3.58%
Net interest margin 3.68% 3.99%
Noninterest expense to average assets 2.91% 3.77%
CONDENSED CONSOLIDATED BALANCE SHEETS
Mar 31 June 30
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1998 1997
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(unaudited)
Cash and Interest-bearing deposits $ 7,727 $ 6,580
Investments & Mortgage Backed Securities 21,471 10,074
Loans held for sale 1,780 727
Loans receivable, net 47,891 50,982
Property and equipment, net 1,626 1,666
Other assets 969 724
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Total assets $81,464 $70,753
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Deposits $68,666 $57,933
Advances FHLB 3,500 3,500
Accrued expenses and other liabilities 911 718
Stockholders' Equity 8,387 8,602
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Total liabilities and stockholders' equity $81,464 $70,753
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Nonaccrual and 90 days past due loans $ 0 $ 60
Total nonperforming assets $ 0 $ 60
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Allowance for credit losses
to nonperforming assets .00% 416.99%
Nonperforming loans to total loans .00% .10%
Nonperforming assets to total assets .00% .08%
Book value per share $ 16.56 (1) 16.83 (1)
(1) Book value per share has been calculated by taking Stockholders' Equity
and dividing by the number of shares outstanding. Shares outstanding on
March 31, 1998 were 506,284 and on June 30, 1997 were 510,984.