SECURITIES AND EXCHANGE COMMISSION
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)
April 18, 1997
SWVA BANCSHARES, INC.
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(Exact name of Registrant as specified in its Charter)
Virginia 0-24674 54-1721629
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(State or other jurisdiction (SEC File No.) (IRS Employer
of incorporation) Identification
Number)
302 Second Street, S.W., Roanoke, Virginia 24011
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (540) 343-0135
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Not Applicable
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(Former name or former address, if changed since last Report)
<PAGE>
SWVA BANCSHARES, INC.
INFORMATION TO BE INCLUDED IN REPORT
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
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Exhibit 99 -- Press Release dated April 18, 1997.
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<PAGE>
SIGNATURES
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 April 25, 1997 By /s/ Barbara C. Weddle
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Barbara C. Weddle
(Duly authorized representative)
Exhibit 99
<PAGE>
NEWS RELEASE
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Contact: B.L. Rakes, President & CEO
Mary G. Staples, PFO
(540) 343-0135
Date: April 18, 1997
FOR IMMEDIATE RELEASE
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SWVA BANCSHARES, INC. ANNOUNCES THIRD QUARTER EARNINGS
AND STOCK REPURCHASE PROGRAM
Roanoke, Virginia, April 18, 1997: SWVA Bancshares, Inc., the holding
company of Southwest Virginia Savings Bank, FSB, Roanoke, Virginia, announced
earnings for the third quarter of fiscal year 1997.
Net income for the nine months ended March 31, 1997 was $172,000 or
$0.35 per share. Income for the nine months was affected by a one-time
assessment by the FDIC to recapitalize the Savings Association Insurance Fund
(SAIF). Without the $355,000 assessment, SWVA Bancshares, Inc. net income for
the nine months ended March 31, 1997 would have been $392,378 or $0.81 per share
with return on average assets of .75% and return on average equity of 6.20%.
Net income increased $44,000 or 44.89%, from $98,000 for the three
months ended March 31, 1996 to $142,000 for the three months ended March 31,
1997. The increase in net income was due to increased net interest income offset
by a decrease in noninterest income.
Interest income increased $115,000, or 9.38% from $1.2 million for the
three months ended March 31, 1996 to $1.3 million for the three months ended
March 31, 1997. The increase was mainly a result of additional mortgage loans
put in the Bank's portfolio and an increase in funds invested.
Interest expense increased $9,000 or 1.37% from $655,000 for the three
months ended March 31, 1996 to $664,000 for the three months ended March 31,
1997. The increase was due mainly to an increase in interest paid on borrowed
funds offset by a decrease in interest paid on deposits.
Net interest income increased by $106,000 from $571,000 for the three
months ended March 31, 1996 to $677,000 for the three months ended March 31,
1997, due mainly to additional interest earned on mortgage loans and
investments.
The Bank made no provision for credit losses for the three months ended
March 31, 1997. 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 March 31, 1997.
Non-interest income decreased by $56,000, or 42.42% from $132,000 for
the three months ended March 31, 1996 to $76,000 for the three months ended
March 31, 1997. This was mainly the result of a $51,000 reduction in income on
loans sold in the secondary market for the three months ended March 31, 1997.
Non-interest expense decreased by $14,000, or 2.57% from $543,000 for
the three months ended March 31, 1996 to $529,000 for the three months ended
March 31, 1997, mainly due to a reduction in Federal Deposit Insurance Premiums,
decreased office occupancy and equipment expense offset by an increase in data
processing expenses and other noninterest expenses.
<PAGE>
The Company's assets and stockholders' equity amounted to $68.9 million
and $8.4 million, respectively, at March 31, 1997.
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., "the Company" has received regulatory approval to
implement its 5% stock repurchase program. Mr. B.L. Rakes, President, said the
Company has been authorized by its Board of Directors to repurchase up to 26,021
shares or 5% of its outstanding shares of common stock.
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, 1997, at which time the Company may terminate or continue the
program.
SWVA Bancshares, Inc.'s common stock shares are listed over-the-counter
through the National Daily Quotation System "Pink Sheets" under the symbol
"SWVB".
<PAGE>
SWVA BANCSHARES, INC.
(Dollars in thousands, except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
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1997 1996
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(unaudited)
<S> <C> <C>
Interest income $ 3,942 $ 3,688
Interest expense 1,992 1,987
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Net interest income 1,950 1,701
Provision for credit losses 0 0
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Net interest income after
provision for credit losses 1,950 1,701
Noninterest income 293 351
Noninterest expense 1,959 1,682
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Income before income taxes 284 370
Provision for income taxes 112 144
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Net Income $ 172 $ 226
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Earnings per common share $ 0.35 $ 0.52
Return on average assets 0.33% .45%
Return on average equity 2.70% 3.72%
Interest rate spread 3.58% 3.24%
Net interest margin 3.99% 3.65%
Noninterest expense to average assets 3.77% 3.37%
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31 June 30
1997 1996
----------- ------------
(unaudited)
<S> <C> <C>
Cash and investments $ 8,347 $ 9,103
Mortgage-backed and related securities 6,568 7,939
Loans held for sale 793 985
Loans receivable, net 50,946 46,757
Property and equipment, net 1,641 1,662
Other assets 578 541
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Total assets $68,873 $66,987
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Deposits $58,512 $57,643
Advances FHLB 1,000 0
Accrued expenses and other liabilities 933 669
Stockholders' Equity 8,428 8,675
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Total liabilities and stockholders' equity $68,873 $66,987
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Nonaccrual and 90 days past due loans $ 6 $ 0
Total nonperforming assets $ 0 $ 0
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Allowance for credit losses
to nonperforming assets .00% .00%
Nonperforming loans to total loans .00% .00%
Nonperforming assets to total assets .00% .00%
Book value per share $16.19(1) 15.97(1)
</TABLE>
(1) Book value per share has been calculated by taking Stockholder's Equity
and dividing by the number of shares outstanding. Shares outstanding on
June 30, 1996 were 543,190. Shares outstanding on March 31, 1997 were
520,434.
