8-K, 1996-05-10
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                            Washington, D.C.  20549

                                   FORM 8-K

                                Current Report

                    Pursuant to Section 13 or 15(d) of the

                        Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported) May 3, 1996

                              SWVA Bancshares, Inc.
              (Exact Name of Registrant as Specified in Charter)

             Virginia                 0-24674                 54-1721629
(State or Other Jurisdiction   (Commission File Number)   (IRS Employer No.)
     of Incorporation)

 302 Second Street, S.W., Roanoke, Virginia                   24011-1597
     (Address of Principal Executive Offices)                 (Zip Code)

       Registrant's telephone number, including area code (703) 343-0135


Item 5. Other Events

      On May 3,  1996,  the  registrant  issued a press  release  regarding  its
earnings for the quarter  ended March 31,  1996. A copy of the press  release is
attached as Exhibit 99 hereto.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

      (c)  Exhibits.

            99    Press release related to earnings.



      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                          SWVA BANCSHARES, INC.

Date May 3, 1996                          By  /s/ B.L. Rakes
                                             B.L. Rakes
                                             (Duly authorized representative)


                                  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


      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

      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

      SWVA  Bancshares,  Inc's common  stock shares are listed  over-the-counter
through the  National  Daily  Quotation  System "Pink  Sheets"  under the symbol


                             SWVA BANCSHARES, INC.

                 (Dollars in thousands, except per share data)


                                                           Nine Months Ended
                                                                March 31
                                                            1996         1995
                                                           -----        -----  

<S>                                                        <C>          <C>  
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%


                                                           Mar 31      June 30
                                                             1996        1995
                                                           ------      -------

<S>                                                      <C>         <C>     
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.

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