<PAGE>
 
                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                             ---------------------

                                   FORM 10-Q

                             ---------------------


    (Mark one)
       [X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                 For the quarterly period ended September 30, 1997

                                      OR

       [ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                     For the transition period from      to


                         Commission File Number 1-6964


                        BELL ATLANTIC - VIRGINIA, INC.


A Virginia Corporation             I.R.S. Employer Identification No. 54-0167060


                600 East Main Street, Richmond, Virginia  23219


                        Telephone Number (804) 225-6300

                           -------------------------



THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF BELL ATLANTIC CORPORATION, MEETS
THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL
INSTRUCTION H(2).


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X    No 
                                        -----     -----               
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                        PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 STATEMENTS OF INCOME AND REINVESTED EARNINGS
                                  (Unaudited)
                            (Dollars in Thousands)
<TABLE>
<CAPTION>


                                                                                Three months ended     Nine months ended   
                                                                                  September 30,          September 30,     
                                                                               --------------------  ---------------------
                                                                                 1997       1996        1997        1996   
                                                                               ---------  ---------  ----------  --------- 
<S>                                                                            <C>        <C>        <C>         <C>       
OPERATING REVENUES (including $3,111, $4,308, $7,957 and $7,564 
     from affiliates).......................................................   $509,768   $545,602  $1,542,875  $1,622,106
                                                                               --------   --------  ----------  ----------
 
OPERATING EXPENSES
     Employee costs, including benefits and taxes...........................     89,860     97,016     257,200     278,046
     Depreciation and amortization..........................................    131,917    104,654     346,830     309,499
     Taxes other than income................................................     14,955     14,859      43,602      43,664
     Other (including $125,980, $130,173, $374,165 and $375,843 
       to affiliates).......................................................    183,171    193,920     532,724     554,986
                                                                               --------   --------  ----------  ----------
                                                                                419,903    410,449   1,180,356   1,186,195
                                                                               --------   --------  ----------  ----------
 
OPERATING INCOME............................................................     89,865    135,153     362,519     435,911
 
OTHER INCOME, NET (including $2, $0, $123 and $356 
     from affiliate)........................................................        410        274       1,526       1,197
 
INTEREST EXPENSE (including $822, $659, $1,757 and $1,268 to affiliate).....     16,508     16,158      48,867      46,503
                                                                               --------   --------  ----------  ----------
 
Income Before Provision for Income Taxes and Cumulative Effect of 
     Change in Accounting Principle.........................................     73,767    119,269     315,178     390,605
PROVISION FOR INCOME TAXES..................................................     28,690     45,013     119,622     148,556
                                                                               --------   --------  ----------  ----------
 
Income Before Cumulative Effect of Change in Accounting Principle...........     45,077     74,256     195,556     242,049
 
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
     Directory Publishing, Net of Tax.......................................        ---        ---         ---      16,423
                                                                               --------   --------  ----------  ----------
 
NET INCOME..................................................................   $ 45,077   $ 74,256  $  195,556  $  258,472
                                                                               ========   ========  ==========  ==========
 
 
REINVESTED EARNINGS
     At beginning of period.................................................   $193,077   $237,541  $  204,789  $  166,070
     Add:  net income.......................................................     45,077     74,256     195,556     258,472
                                                                               --------   --------  ----------  ----------
                                                                                238,154    311,797     400,345     424,542
     Deduct:  dividends.....................................................    103,800     80,000     252,800     192,466
              other changes.................................................        158         10      13,349         289
                                                                               --------   --------  ----------  ----------
     At end of period.......................................................   $134,196   $231,787  $  134,196  $  231,787
                                                                               ========   ========  ==========  ==========
 
</TABLE>
                       See Notes to Financial Statements.

                                       1
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                                 BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Thousands)
                                        

                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
 
                                                   September 30,  December 31,
                                                       1997           1996
                                                   -------------  ------------
<S>                                                <C>            <C>
 
CURRENT ASSETS
Short-term investments...........................     $   10,674    $   32,651
Accounts receivable:
     Trade and other, net of allowances for
          uncollectibles of $30,000 and $30,778..        422,803       464,852
     Affiliates..................................         40,298        32,383
Material and supplies............................         16,657         9,927
Prepaid expenses.................................         16,466        45,188
Deferred income taxes............................          6,066           ---
Other............................................            356           323
                                                      ----------    ----------
                                                         513,320       585,324
                                                      ----------    ----------
 
PLANT, PROPERTY AND EQUIPMENT....................      5,853,537     5,636,757
Less accumulated depreciation....................      3,172,439     2,970,105
                                                      ----------    ----------
                                                       2,681,098     2,666,652
                                                      ----------    ----------
 
OTHER ASSETS.....................................         49,139        45,690
                                                      ----------    ----------
 
TOTAL ASSETS.....................................     $3,243,557    $3,297,666
                                                      ==========    ==========
 
</TABLE>



                       See Notes to Financial Statements.

                                       2
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                                 BALANCE SHEETS
                                  (Unaudited)
                             (Dollars in Thousands)
                                        

                    LIABILITIES AND SHAREOWNER'S INVESTMENT
                    ---------------------------------------
<TABLE>
<CAPTION>
 
                                                     September 30,  December 31,
                                                         1997           1996
                                                     -------------  ------------
<S>                                                  <C>            <C>
 
CURRENT LIABILITIES
Debt maturing within one year:
     Note payable to affiliate.....................     $   67,552    $   52,715
     Other.........................................          1,156           968
Accounts payable and accrued liabilities:
     Affiliates....................................        218,262       232,529
     Other.........................................        360,778       316,473
Other liabilities..................................         62,430        67,120
                                                        ----------    ----------
                                                           710,178       669,805
                                                        ----------    ----------
 
LONG-TERM DEBT.....................................        945,930       945,987
                                                        ----------    ----------
 
EMPLOYEE BENEFIT OBLIGATIONS.......................        395,627       410,666
                                                        ----------    ----------
 
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes..............................        103,039       108,012
Unamortized investment tax credits.................         17,920        20,405
Other..............................................         62,982        64,317
                                                        ----------    ----------
                                                           183,941       192,734
                                                        ----------    ----------
SHAREOWNER'S INVESTMENT
Common stock - one share, without par value, 
     owned by parent...............................        873,685       873,685
Reinvested earnings................................        134,196       204,789
                                                        ----------    ----------
                                                         1,007,881     1,078,474
                                                        ----------    ----------
 
TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT......     $3,243,557    $3,297,666
                                                        ==========    ==========
 
</TABLE>



                       See Notes to Financial Statements.

                                       3
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                             (Dollars in Thousands)

<TABLE> 
<CAPTION> 
                                                                 Nine months ended     
                                                                   September 30,       
                                                             ------------------------  
                                                                1997           1996    
                                                             ---------      ---------  
<S>                                                          <C>            <C>           
NET CASH PROVIDED BY OPERATING ACTIVITIES...............     $ 593,870      $ 533,491   
                                                             ---------      ---------   
                                                                                        
CASH FLOWS FROM INVESTING ACTIVITIES                                                    
Net change in short-term investments....................        21,977         (3,580)  
Additions to plant, property and equipment..............      (373,083)      (302,018)  
Other, net..............................................        11,464         11,821   
                                                             ---------      ---------   
Net cash used in investing activities...................      (339,642)      (293,777)   
                                                             ---------      ---------  
                                                                                       
CASH FLOWS FROM FINANCING ACTIVITIES                                                   
Principal repayments of capital lease obligations.......          (806)        (1,853) 
Net change in note payable to affiliate.................        14,837        (51,218) 
Dividends paid..........................................      (252,800)      (192,466) 
Net change in outstanding checks drawn                                                 
     on controlled disbursement accounts................       (15,459)         5,823  
                                                              --------       --------  
Net cash used in financing activities...................      (254,228)      (239,714) 
                                                              --------       --------  
                                                                                       
NET CHANGE IN CASH......................................           ---            ---  

                                                                                       
CASH, BEGINNING OF PERIOD...............................           ---            ---  
                                                              --------       --------  
                                                                                       
CASH, END OF PERIOD.....................................      $    ---       $    ---  
                                                              ========       ========   
</TABLE> 

                       See Notes to Financial Statements.

                                       4
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)
                                        
1.   Basis of Presentation

     Bell Atlantic - Virginia, Inc. (the Company) is a wholly owned subsidiary
of Bell Atlantic Corporation (Bell Atlantic). The accompanying unaudited
condensed financial statements have been prepared based upon Securities and
Exchange Commission rules that permit reduced disclosure for interim periods.
These financial statements include certain reclassifications in presentation and
certain retroactive adjustments to conform accounting methodologies as a result
of the merger of Bell Atlantic and NYNEX Corporation (NYNEX) (see Note 2). These
financial statements reflect all adjustments which are necessary for a fair
presentation of results of operations and financial position for the interim
periods shown including normal recurring accruals and other items (see Note 2).
The results for the interim periods are not necessarily indicative of results
for the full year. For a more complete discussion of significant accounting
policies and certain other information, refer to the financial statements filed
with the Company's 1996 Form 10-K.

2.   Bell Atlantic - NYNEX Merger

     On August 14, 1997, Bell Atlantic and NYNEX completed a merger of equals
under a definitive merger agreement entered into on April 21, 1996 and amended
on July 2, 1996.  The stockholders of each company approved the merger at
special meetings held in November 1996.  Under the terms of the amended
agreement, NYNEX became a wholly owned subsidiary of Bell Atlantic.  The merger
has been accounted for as a pooling of interests.

     As a result of conforming the accounting methodologies of Bell Atlantic and
NYNEX, the Company has recorded an after-tax charge of $3,559,000 to reinvested
earnings to recognize its liability for carryover vacation pay as if the merger
had occurred as of the beginning of the earliest period presented.

Merger-Related Costs

     Results of operations for the third quarter of 1997 include merger-related
pre-tax costs totaling approximately $13,800,000, consisting of $3,200,000 for
direct incremental costs and $10,600,000 for employee severance costs. A small
portion of costs for transition and integration were also incurred by the
Company.  These costs include the Company's allocated share of merger-related
costs from Bell Atlantic Network Services, Inc. (NSI), an affiliate which
provides centralized services on a contract basis.

     Direct incremental costs consist of expenses associated with compensation
arrangements related to completing the merger transaction.  Employee severance
costs represent the Company's proportionate share of benefit costs for the
separation by the end of 1999 of management employees who are entitled to
benefits under preexisting Bell Atlantic separation pay plans.  Transition and
integration costs consist of the Company's proportionate share of costs
associated with integrating the operations of Bell Atlantic and NYNEX.

Additional Charges

     In the third quarter of 1997, the Company recorded pre-tax charges of
approximately $38,300,000 in connection with consolidating operations and 
combining organizations and for special items arising in the quarter.  These
charges include the Company's allocated share of charges from NSI.  A discussion
of these charges follows:

     The Company recognized pre-tax charges of approximately $22,800,000 for the
write-down of obsolete fixed assets ($21,700,000) and for the cost of
consolidating certain redundant real estate properties ($1,100,000).

     The Company also recognized pre-tax charges of approximately $14,400,000
for contingencies associated with various regulatory and legal matters and
approximately $1,100,000 for other miscellaneous expense items.

3.   Dividend

     On November 3, 1997, the Company declared and paid a dividend in the amount
of $78,800,000 to Bell Atlantic.

                                       5
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

4.   Transfer of Directory Publishing Activities

     On January 1, 1997, the Company transferred, at net book value without gain
or loss, certain assets and liabilities associated with its directory publishing
activities to a newly formed, wholly owned subsidiary.  The stock of the
subsidiary was immediately distributed to Bell Atlantic.  The transfer of such
assets and liabilities was completed as part of Bell Atlantic's and the
Company's response to the requirements of the Telecommunications Act of 1996,
which prohibits the Company from engaging in electronic publishing or joint
sales and marketing of electronic products.

     Net assets transferred by the Company totaled approximately $12,700,000,
and consisted of deferred directory production costs (included in prepaid
expenses), fixed assets, and related deferred tax liabilities.

     Revenues and direct expenses related to the Company's directory publishing
activities transferred were approximately $141,100,000 and $64,500,000,
respectively, for the nine month period ended September 30, 1996.  The Company
does not separately identify indirect expenses attributable to the directory
publishing activities, including expenses related to billing and data management
and processing services, legal, external affairs, depreciation, interest expense
and any corresponding tax expense.

5.   Litigation and Other Contingencies

     Various legal actions and regulatory proceedings are pending to which the
Company is a party.  The Company has established reserves for liabilities in
connection with regulatory and legal matters which it currently deems to be
probable and estimable.  The Company does not expect that the ultimate
resolution of these matters in future periods will have a material effect on the
Company's financial position, but it could have a material effect on results of
operations.

                                       6
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

Item 2.  Management's Discussion and Analysis of Results of Operations
         (Abbreviated pursuant to General Instruction H(2).)

     This discussion should be read in conjunction with the Financial Statements
and Notes to Financial Statements.

RESULTS OF OPERATIONS
---------------------

     The Company reported net income of $195,556,000 for the nine month period
ended September 30, 1997, compared to net income of $258,472,000 for the same
period in 1996.

Bell Atlantic - NYNEX Merger

     On August 14, 1997, Bell Atlantic and NYNEX completed a merger of equals
under a definitive merger agreement entered into on April 21, 1996 and amended
on July 2, 1996.  The stockholders of each company approved the merger at
special meetings held in November 1996.  Under the terms of the amended
agreement, NYNEX became a wholly owned subsidiary of Bell Atlantic.  The merger
has been accounted for as a pooling of interests.

     As a result of conforming the accounting methodologies of Bell Atlantic and
NYNEX, the Company has recorded an after-tax charge of $3,559,000 to reinvested
earnings to recognize its liability for carryover vacation pay as if the merger
had occurred as of the beginning of the earliest period presented.

     Merger-Related Costs

     Results of operations for the third quarter of 1997 include merger-related
pre-tax costs totaling approximately $13,800,000, consisting of $3,200,000 for
direct incremental costs and $10,600,000 for employee severance costs. A small
portion of costs for transition and integration were also incurred by the
Company.  These costs include the Company's allocated share of merger-related
costs from Bell Atlantic Network Services, Inc. (NSI), an affiliate which
provides centralized services on a contract basis.

     Direct incremental costs consist of expenses associated with compensation
arrangements related to completing the merger transaction.  Employee severance
costs represent the Company's proportionate share of benefit costs for the
separation by the end of 1999 of management employees who are entitled to
benefits under preexisting Bell Atlantic separation pay plans.  Transition and
integration costs consist of the Company's proportionate share of costs
associated with integrating the operations of Bell Atlantic and NYNEX.

     Bell Atlantic expects to incur between $400 million and $500 million (pre-
tax) in additional transition and integration merger-related expenses over the
three years following the closing of the merger.  It is anticipated that the
Company will recognize a portion of these costs.

Additional Charges

     In the third quarter of 1997, the Company recorded pre-tax charges of
approximately $38,300,000 in connection with consolidating operations and 
combining organizations and for special items arising in the quarter.  These
charges include the Company's allocated share of charges from NSI.  A discussion
of these charges follows:

     The Company recognized pre-tax charges of approximately $22,800,000 for the
write-down of obsolete fixed assets ($21,700,000) and for the cost of
consolidating certain redundant real estate properties ($1,100,000).

     The Company also recognized pre-tax charges of approximately $14,400,000
for contingencies associated with various regulatory and legal matters and
approximately $1,100,000 for other miscellaneous expense items.

Transfer of Directory Publishing Activities

     On January 1, 1997, the Company transferred, at net book value without gain
or loss, certain assets and liabilities associated with its directory publishing
activities to a newly formed, wholly owned subsidiary.  The stock of the
subsidiary was immediately distributed to Bell Atlantic.  The transfer of such
assets and liabilities was completed as part of Bell Atlantic's and the
Company's response to the requirements of the Telecommunications Act of 1996,
which prohibits the Company from engaging in electronic publishing or joint
sales and marketing of electronic products.

                                       7
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

     Net assets transferred by the Company totaled approximately $12,700,000,
and consisted of deferred directory production costs (included in prepaid
expenses), fixed assets, and related deferred tax liabilities.

     Revenues and direct expenses related to the Company's directory publishing
activities transferred were approximately $141,100,000 and $64,500,000,
respectively, for the nine month period ended September 30, 1996. The Company
does not separately identify indirect expenses attributable to the directory
publishing activities, including expenses related to billing and data management
and processing services, legal, external affairs, depreciation, interest expense
and any corresponding tax expense.

     Effective January 1, 1997, revenues from directory publishing activities
transferred are no longer earned, and the related expenses are no longer
incurred, by the Company.  Certain other revenues, primarily fees for non-
publication of telephone numbers and multiple white page listings continue to be
earned by the Company.  Additionally, contracts between the Company and another
affiliate of Bell Atlantic for billing and collection services related to the
directory activities, use of directory listings, and rental charges have created
new revenue sources for the Company.

Cumulative Effect of Change in Accounting - Directory Publishing

     The Company changed its method of accounting for directory publishing
revenues and expenses, effective January 1, 1996. The Company adopted the point-
of-publication method, which requires directory revenues and expenses to be
recognized upon publication rather than over the lives of the directories.  The
Company recorded an after-tax increase in income of $16,423,000 in the first
quarter of 1996, representing the cumulative effect of this accounting change.
Results of operations for the first three quarters of 1996 were restated to
reflect the impact of this change.

--------------------------------------------------------------------------------

     These and other items affecting the comparison of the Company's results of
operations for the nine month periods ended September 30, 1997 and 1996 are
discussed in the following sections.  This Management's Discussion and Analysis
should also be read in conjunction with the Company's 1996 Annual Report on Form
10-K.

<TABLE> 
<CAPTION> 

OPERATING REVENUE STATISTICS
----------------------------
 
                                                   1997        1996    % Change 
--------------------------------------------------------------------------------
<S>                                              <C>         <C>       <C>     
                                                                           
At September 30                                                            
---------------                                                            
  Access Lines in Service (in thousands)                                   
     Residence................................    2,046       1,960         4.4%
     Business.................................    1,219       1,160         5.1 
     Public...................................       42          41         2.4 
                                                  -----       -----             
                                                  3,307       3,161         4.6 
                                                  =====       =====             
                                                                    
                                                                    
Nine Month Period Ended September 30                                
------------------------------------                                
  Access Minutes of Use (in millions).........   11,319      10,654         6.2
                                                 ======      ======       
                                                                    
  Toll Messages (in thousands)................   75,039      85,216       (11.9)
                                                 ======      ======
</TABLE> 

                                       8
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

<TABLE> 
<CAPTION> 

OPERATING REVENUES
------------------
(Dollars in Thousands)

Nine Month Period Ended September 30             1997        1996      % Change
--------------------------------------------------------------------------------
<S>                                        <C>         <C>              <C>
                                                                   
Local service..........................    $  844,436  $  789,463          7.0%
Network access.........................       461,186     455,347          1.3
Long distance services.................        56,003      67,760        (17.4)
Ancillary services.....................       172,175     160,542          7.2
Directory and information services.....         9,075     148,994        (93.9)
                                           ----------  ----------             
Total..................................    $1,542,875  $1,622,106         (4.9)
                                           ==========  ==========              
</TABLE>

LOCAL SERVICE REVENUES

     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $54,973             7.0%
--------------------------------------------------------------------------------

     Local service revenues are earned by the Company from the provision of
local exchange, local private line, public telephone (pay phone) and value-added
services. Value-added services are a family of services which expand the
utilization of the network. These services include products such as Caller ID,
Call Waiting and Return Call.

     Higher usage of the Company's network facilities was the primary reason for
the increase in local service revenues in the nine months ended September 30,
1997.  This growth was generated by an increase in access lines in service of
4.6% from September 30, 1996.  This access line growth primarily reflects higher
demand for Centrex services and an increase in additional residential lines.
Higher revenues from private line and switched data services, and stronger
business message volumes also contributed to the revenue growth in 1997.

     Revenue growth in 1997 was boosted by increased revenues from value-added
services.  This increase was principally the result of higher customer demand
and usage, fueled in part by the introduction of new and enhanced optional
features.

     The increases in local services revenues were partially offset by the
impact of a settlement of issues in June 1996 related to a review of the
Company's results by the Virginia State Corporation Commission (SCC). See
"Factors That May Impact Future Results - Other State Regulatory Matters" on
page 16 for a brief discussion of this issue.

     For a discussion of the Telecommunications Act of 1996, which will open the
local exchange market to competition, see "Factors That May Impact Future
Results" beginning on page 13.


NETWORK ACCESS REVENUES

     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $5,839              1.3%
--------------------------------------------------------------------------------

     Network access revenues are earned from long distance carriers for their
use of the Company's local exchange facilities in providing long distance
services to their customers, and from end-user subscribers. Switched access
revenues are derived from usage-based charges paid by long distance carriers for
access to the Company's network. Special access revenues arise from access
charges paid by long distance carriers and end-users who have private networks.
End-user access revenues are earned from the Company's customers who pay for
access to the network.

     Network access revenues increased in the first nine months of 1997
principally due to higher customer demand as reflected by growth in access
minutes of use of 6.2% in the nine month period of 1997 over the same period
last year. Volume growth was boosted by the expansion of the business market,
particularly for high capacity services. Higher end-user revenues attributable
to an increase in access lines in service also contributed to revenue growth in
1997.

                                       9
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

     Volume-related growth was partially offset by the effect of price
reductions mandated by the Federal Communications Commission (FCC). Effective
July 1, 1997, the Company implemented price decreases of approximately
$39,500,000 on an annual basis for interstate access services, in connection
with the FCC's price cap plan. Revenues also were reduced by special charges for
contingencies associated with regulatory matters, as previously discussed.

     It is expected that the impact of price decreases, in connection with the
FCC's price cap plan effective July 1, 1997, will be more than offset by volume
increases and the effect of prior year accruals. For a further discussion of FCC
rulemakings concerning price caps, access charges and universal service, see
"Factors That May Impact Future Results - Recent Developments - FCC Orders"
beginning on page 14.


LONG DISTANCE SERVICES REVENUES

     1997-1996                        (Decrease)
--------------------------------------------------------------------------------
     Nine Months             $(11,757)         (17.4)%
--------------------------------------------------------------------------------

     Long distance services revenues are earned primarily from calls made
outside a customer's local calling area, but within the same service area of the
Company (intraLATA toll). Other long distance services include 800 services and
Wide Area Telephone Service (WATS).

     The effects of extended local calling areas and increased competition for
intraLATA toll, WATS and private line services contributed substantially to the
reduction in long distance services revenues in 1997. Toll message volumes
declined 11.9% in the first nine months of 1997 as compared to the same period
in 1996, reflecting the impact of the extended local calling areas.

     The Company believes that competition for long distance services will
continue to impact future revenue trends. See "Factors That May Impact Future
Results - Competition - IntraLATA Toll Services" beginning on page 15 for a
discussion of presubscription.


ANCILLARY SERVICES REVENUES


     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $11,633             7.2%
--------------------------------------------------------------------------------

     The Company provides ancillary services which include billing and
collection services for long distance carriers and affiliates, customer premises
equipment (CPE) services, facilities rental services for affiliates and non-
affiliates, voice messaging, sales of materials and supplies to affiliates, ISDN
and other high bandwidth services.

     Higher ancillary services revenues in 1997 resulted primarily from
increased demand for CPE services contracted with the federal government.
Revenue growth from voice messaging services, principally Answer Call, and
nonperformance fees received from a vendor also contributed to the growth in
ancillary services revenues. These increases in ancillary services revenues were
partially offset by lower facilities rental revenues.

                                       10
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

DIRECTORY AND INFORMATION SERVICES REVENUES

     1997-1996                        (Decrease)
--------------------------------------------------------------------------------
     Nine Months             $(139,919)        (93.9)%
--------------------------------------------------------------------------------

     As described earlier, the Company transferred certain assets and
liabilities associated with its directory publishing activities to a newly
formed, wholly owned subsidiary, effective January 1, 1997. As a result,
revenues associated with directory publishing activities transferred are no
longer earned by the Company. The Company's directory and information services
revenues in 1997 are earned primarily from fees for non-publication of telephone
numbers, multiple white page listings and usage of directory listings.

     The decrease in directory and information services revenues in 1997 was
principally due to the effect of the transfer of directory publishing
activities.

<TABLE>
<CAPTION>
 
OPERATING EXPENSES
------------------
(Dollars in Thousands)
 
Nine Month Period Ended September 30             1997         1996     % Change
--------------------------------------------------------------------------------
<S>                                          <C>          <C>          <C> 
Employee costs, including benefits and
 taxes....................................   $  257,200   $  278,046      (7.5)%
Depreciation and amortization.............      346,830      309,499      12.1
Taxes other than income...................       43,602       43,664       (.1)
Other operating expenses..................      532,724      554,986      (4.0)
                                             ----------   ----------
Total                                        $1,180,356   $1,186,195       (.5)
                                             ==========   ==========
</TABLE>

EMPLOYEE COSTS

     1997-1996                        (Decrease)
--------------------------------------------------------------------------------
     Nine Months             $(20,846)          (7.5)%
--------------------------------------------------------------------------------

     Employee costs consist of salaries, wages and other employee compensation,
employee benefits and payroll taxes paid directly by the Company.  Similar costs
incurred by employees of Bell Atlantic Network Services, Inc. (NSI), who provide
centralized services on a contract basis, are allocated to the Company and are
included in other operating expenses.

     The decrease in employee costs was primarily due to a reduction in benefit
costs caused by a number of factors, including an increase in the discount rate
used to develop pension and postretirement benefit costs, favorable pension plan
asset returns and lower than expected medical claims.  A decline in the level of
employee costs incurred for repair and maintenance activity also contributed to
the expense reduction in 1997.  This decline was partially due to the impact of
the severe weather experienced in the first quarter of 1996 which caused a
higher level of costs to be expensed during that period.

     These cost reductions were partially offset by annual salary and wage
increases, the effect of increased work force levels principally as a result of
higher business volumes, and merger-related costs recorded in the third quarter
of 1997.  As described earlier, the Company recognized approximately $3,300,000
in benefit costs for the separation by the end of 1999 of management employees
who are entitled to benefits under preexisting Bell Atlantic separation pay
plans.  The Company also recorded approximately $500,000 for direct incremental
merger-related costs associated with compensation arrangements.  Merger-related
costs associated with employees of NSI were allocated to the Company and are
included in other operating expenses.

                                       11
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

DEPRECIATION AND AMORTIZATION

     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $37,331            12.1%
--------------------------------------------------------------------------------

     Depreciation and amortization increased in the first nine months of 1997 as
a result of the recording of approximately $21,600,000 for the write-down of
obsolete fixed assets in the third quarter of 1997, as previously mentioned.
Charges associated with the write-down of obsolete fixed assets of NSI were
allocated to the Company and are included in other operating expenses. Higher
depreciation expense was also caused by growth in depreciable telephone plant.
These expense increases were partially offset by the effect of lower rates of
depreciation and amortization.


TAXES OTHER THAN INCOME

     1997-1996                        (Decrease)
--------------------------------------------------------------------------------
     Nine Months             $(62)               (.1)%
--------------------------------------------------------------------------------

     Taxes other than income consist of taxes for gross receipts, property,
capital stock and other nonincome-based items.

     The decrease in taxes other than income was largely attributable to prior
period adjustments to the federal superfund tax recorded in 1997.  This decrease
was  substantially offset by additional expense resulting from higher property
tax rates.


OTHER OPERATING EXPENSES

     1997-1996                         (Decrease)
--------------------------------------------------------------------------------
     Nine Months             $(22,262)          (4.0)%
--------------------------------------------------------------------------------

     Other operating expenses consist of contract services including centralized
services expenses allocated from NSI, rent, network software costs, the
provision for uncollectible accounts receivable, and other costs.

     As a result of the transfer of directory publishing activities, certain
direct and allocated expenses related to the activities transferred are no
longer incurred by the Company.

     The decrease in other operating expenses was largely attributable to the
effect of the transfer of directory publishing activities and the timing of
network software purchases.  These decreases were partially offset by higher
costs for materials, rent and contract services.  Other items affecting the nine
month period, but to a lesser extent, were merger-related costs and other
special items recorded in the third quarter of 1997.  These charges were
comprised of costs to consolidate certain redundant real estate properties, the
Company's allocated share of employee severance costs, direct incremental and
transition merger-related costs and charges associated with the write-down of
obsolete fixed assets incurred by NSI, and other miscellaneous expense items.


OTHER INCOME, NET

     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $329               27.5%
--------------------------------------------------------------------------------

     The change in other income, net was attributable to additional interest
income primarily resulting from the purchase of short-term investments in
December 1996 to prefund a trust for the payment of certain employee benefits.
This change was partially offset by lower interest income associated with a note
receivable from an affiliate.

                                       12
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

INTEREST EXPENSE


     1997-1996                         Increase
--------------------------------------------------------------------------------
     Nine Months             $2,364              5.1%
--------------------------------------------------------------------------------

     Interest expense increased principally due to the effect of a settlement of
certain issues related to a review of the Company's financial results by the
SCC.  In December 1995, the Company recognized interest costs associated with a
revenue refund in connection with this review.  As a result of the settlement, a
portion of these costs was reversed in June 1996.  See "Factors That May Impact
Future Results - Other State Regulatory Matters" on page 16 for a brief
discussion of this issue.


EFFECTIVE INCOME TAX RATES

     Nine Months Ended September 30
--------------------------------------------------------------------------------
     1997                               37.9%
--------------------------------------------------------------------------------
     1996                               38.0%
--------------------------------------------------------------------------------

     The effective income tax rate is the provision for income taxes as a
percentage of income before provision for income taxes and cumulative effect of
change in accounting principle.  The Company's effective income tax rate was
lower in the first nine months of 1997 principally due to the effect of prior
period adjustments recorded in 1996.


FINANCIAL CONDITION
-------------------

     The Company uses the net cash generated from operations and from external
financing to fund capital expenditures for network expansion and modernization,
and pay dividends.  While current liabilities exceeded current assets at
September 30, 1997, September 30, 1996 and December 31, 1996, the Company's
sources of funds, primarily from operations and, to the extent necessary, from
readily available financing arrangements with an affiliate, are sufficient to
meet ongoing operating requirements. Management expects that presently
foreseeable capital requirements will continue to be financed primarily through
internally generated funds. Additional long-term debt may be needed to fund
development activities or to maintain the Company's capital structure to ensure
financial flexibility.

     As of September 30, 1997, the Company had $132,448,000 of an unused line of
credit with an affiliate, Bell Atlantic Network Funding Corporation.  In
addition, the Company had $100,000,000 remaining under a shelf registration
statement filed with the Securities and Exchange Commission for the issuance of
unsecured debt securities.

     The Company's debt ratio was 50.2% as of September 30, 1997, compared to
46.2% as of September 30, 1996 and 48.1% as of December 31, 1996.

     On November 3, 1997, the Company declared and paid a dividend in the amount
of $78,800,000 to Bell Atlantic.


FACTORS THAT MAY IMPACT FUTURE RESULTS
--------------------------------------

Bell Atlantic - NYNEX Merger

     The merger of Bell Atlantic and NYNEX was completed on August 14, 1997. 
Bell Atlantic expects to recognize recurring expense savings following 
completion of the merger as a result of consolidating operating systems and 
other administrative functions and reducing management positions. It is 
anticipated that the Company will recognize a portion of these savings.

Telecommunications Industry Changes

     The telecommunications industry is undergoing substantial changes as a
result of the Telecommunications Act of 1996 (the Act), other public policy
changes and technological advances. These changes are likely to bring increased
competitive pressures in the Company's current business, but will also open new
markets to Bell Atlantic.


                                       13
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

     The Act became law on February 8, 1996 and replaced the Modification of
Final Judgment (MFJ). In general, the Act includes provisions that open local
exchange markets to competition and permit Bell Atlantic to provide interLATA
(long distance) services and to engage in manufacturing, previously prohibited
by the MFJ. However, the ability of Bell Atlantic to provide in-region long
distance service is largely dependent on satisfying certain conditions contained
in the Act. The requirements include a 14-point "competitive checklist" of steps
the Company must take which will help competitors offer local service, through
resale, the purchase of unbundled network elements, or through their own
networks. Bell Atlantic must also demonstrate to the FCC that its entry into the
in-region long distance market would be in the public interest.

     Bell Atlantic expects to petition the FCC for permission to enter the in-
region long distance market in New York by early 1998 and one or more other
states during the first half of 1998, and anticipates entering the long distance
market in at least one jurisdiction during the second half of 1998.  The timing
of Bell Atlantic's long distance entry in each of its 14 jurisdictions depends
on the receipt of FCC approval.  There can be no assurance that any approval
will be forthcoming in time to permit Bell Atlantic to enter the in-region long
distance market on this schedule.

     A U.S. Court of Appeals recently found that the FCC unlawfully attempted to
preempt state authority in implementing key provisions of the Act.  It also
found that several particularly objectionable provisions of the FCC's rules
were inconsistent with the statutory requirements.  In particular, it affirmed
that states have exclusive jurisdiction over the pricing of interconnection
elements and that the FCC could not lawfully allow competitors to "pick and
choose" isolated terms out of negotiated interconnection agreements.  This
decision should not delay the advent of local competition, since, under the
previous stay of the FCC's rules, a number of interconnection agreements have
been concluded and the SCC has proceeded to address pricing and other standards
for local interconnection.

     Pursuant to the Act, the Company filed its "Statement of Generally
Available Terms and Conditions for Interconnection, Unbundled Network Elements,
Ancillary Services and Resale of Telecommunications Services" with the SCC. This
filing is still under review by the SCC.

     The Company is unable to predict definitively the impact that the Act will
ultimately have on its business, results of operations or financial condition.
The financial impact will depend on several factors, including the timing,
extent and success of competition in the Company's markets, and the timing,
extent and success of Bell Atlantic's pursuit of new opportunities resulting
from the Act.

     The Company anticipates that these industry changes, together with the
rapid growth, enormous size and global scope of these markets, will attract new
entrants and encourage existing competitors to broaden their offerings. Current
and potential competitors in telecommunication services include long distance
companies, other local telephone companies, cable companies, wireless service
providers, and other companies that offer network services. Some of these
companies have a strong market presence, brand recognition and existing customer
relationships, all of which contribute to intensifying competition and may
affect the Company's future revenue growth. See the "Competition" section below
for additional information.

Recent Developments - FCC Orders

     On May 7, 1997, the FCC adopted orders to reform the interstate access
charge system, to modify its price cap system and to implement the "universal
service" requirements of the Act. While there are additional decisions pending
on Universal Service and Access Reform, based on the decisions to date the
Company does not believe that these proceedings will result in a material
adverse impact on its results of operations or financial condition.

     Access Charges

     Interstate access charges are the rates long distance carriers pay for use
and availability of the Company's facilities for the origination and termination
of interstate interLATA service.  On May 7, 1997, the FCC adopted changes to the
tariff structures it has prescribed for such charges in order to permit the
Company to recover a greater portion of its costs through rates which reflect
the manner in which those costs are incurred.  Beginning in January 1998, the
FCC will require a phased restructuring of access charges, so that interstate
costs of the Company which do not vary based on usage will be recovered from
long distance carriers through flat rate charges, and those interstate costs
that do vary based on usage be recovered from long distance carriers through
usage-based rates.  In addition, the FCC will require establishment of separate
usage-based charges for originating and for terminating interstate interLATA
traffic.


                                       14
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

     A portion of the Company's interstate costs are also recovered through flat
monthly charges to subscribers (subscriber line charges). Under the FCC's order,
subscriber line charges for primary residential and single line businesses will
remain unchanged initially, but such charges for additional residential lines
and multi-line businesses will rise.

     Price Caps

     The FCC also adopted modifications to its price cap rules that affect
access rate levels. Under the FCC's price cap rules, the Company's price cap
index is adjusted annually by an inflation index (GDP-PI) less a fixed
percentage intended to reflect increases in productivity (Productivity Factor).
In the prior year, the Company's Productivity Factor was 5.3%. Effective July 1,
1997, the FCC created a single Productivity Factor of 6.5% for all price cap
companies, and eliminated requirements to share a portion of future interstate
earnings. The FCC required that rates be set as if the higher Productivity
Factor had been in effect since July 1996. Any local exchange company that earns
a rate of return on its interstate services of less than 10.25% in any calendar
year will be permitted to increase its interstate rates in the following year.
The FCC also ordered elimination of recovery for amortized costs associated with
the Company's implementation of equal access to all long distance carriers.

     On June 30, 1997, Bell Atlantic made its Annual Access Tariff Filing of
Interstate Rates, which became effective on July 1, 1997.  The rates included in
the filing resulted in annual price decreases for the Company totaling
approximately $39,500,000, of which $9,300,000 is a result of one-time
adjustments which will only be in effect until July 1998.

     The FCC is expected to adopt an order in 1998 to address the conditions
under which the FCC would relax or remove existing access rate structure
requirements and price cap restrictions as increased local market competition
develops. The Company is unable to predict the results of this further
proceeding.

     Universal Service

     The FCC also adopted rules designed to preserve "universal service" by
ensuring that a basket of designated services is widely available and affordable
to all customers, including low-income customers and customers in areas that are
expensive to serve.  The FCC's universal service support will approximate $1.5
billion for high cost areas pending completion of further FCC proceedings.  The
FCC, in conjunction with the Federal-State Joint Board on Universal Service,
will determine the methodology for determining high cost areas for non-rural
carriers, and the proper amount of federal universal service support for high
cost areas.  A new federal high cost universal service support mechanism will
become effective January 1, 1999.

     The FCC also adopted rules to implement the Act's requirements to provide
discounted telecommunications services to schools and libraries, beginning
January 1, 1998, and to ensure that not-for-profit rural health care providers
have access to such services at rates comparable to those charged their urban
counterparts.

     All telecommunications carriers will be required to contribute funding for
these universal service programs.  The federal universal service funding needs
as of January 1, 1998 will require the Company to contribute approximately 2% of
its interstate retail revenues for high cost and low income subsidies.  The
Company will also be contributing a portion of its total retail revenues for
schools, libraries and not-for-profit health care.  The Company will recover its
contributions through interstate charges to long distance carriers and end
users.

Competition

     IntraLATA Toll Services

     IntraLATA toll services are calls that originate and terminate within the
same LATA, but cover a greater distance than a local call.  These services are
generally regulated by the SCC rather than federal authorities.  The SCC permits
other carriers to offer intrastate intraLATA toll services in the Company's
jurisdiction.

     Until the implementation of "presubscription," intraLATA toll calls are
completed by the Company unless the customer dials a code to access a competing
carrier.  Presubscription changes this dialing method and enables customers to
make these toll calls using another carrier without having to dial an access
code.


                                       15
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

     The Act addressed the issue of presubscription for intraLATA toll calls by
prohibiting a state from requiring presubscription or "dialing parity" until the
earlier of such time as an operating telephone company is authorized to provide
long distance services originating in the state or three years from the
effective date of the Act.  This prohibition does not apply to a final order
requiring presubscription that was issued on or prior to December 19, 1995 or to
states consisting of a single LATA.

     In Virginia, the SCC issued an order on July 24, 1995 denying intraLATA
toll presubscription. The Company expects to offer intraLATA presubscription
coincident with Bell Atlantic's offering of long distance services within the
state, as required by the Act. The adverse impact on intraLATA toll services
revenues is expected to be partially offset by an increase in intraLATA access
revenues.

     Local Exchange Services

     Local exchange services have historically been subject to regulation by the
SCC.  Since April 1996, several telephone service providers have been certified
by the SCC to provide local exchange services in Virginia, pending SCC approval
of their tariffs. Applications from other competitors to provide and resell
local exchange services are currently pending and the SCC has set several
hearings to resolve issues raised by companies that desire to provide local
exchange services pursuant to the Act.

     The Act is expected to significantly increase the level of competition in
the Company's local exchange market.

Other State Regulatory Matters

     The communications services of the Company are subject to regulation by the
SCC with respect to intrastate rates and services and certain other matters.

     As required under its regulatory plan, the Company filed financial results
with the SCC for the years 1989 through 1994. The SCC issued orders making the
Company's rates final and no longer subject to refund for the years 1989, 1990,
1991, 1993 and 1994.

     With respect to the 1992 review period, the SCC staff issued its report in
January 1996 and presented alternative treatment for two issues concerning
expenses to be recognized in 1992.  Following consideration of all comments, the
SCC ordered the Company on June 11, 1996 to refund to customers $10,200,000 plus
interest for the 1992 review period.  The Company completed the refund to
customers during the fourth quarter of 1996.


OTHER MATTERS
-------------

     Cautionary Statement Concerning Forward-Looking Statements

     Information contained above with respect to expected financial results and
future events and trends in this Management's Discussion and Analysis is
forward-looking, based on the Company's estimates and assumptions and subject to
risks and uncertainties.  For those statements, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995.

     The following important factors could affect the future results of the
Company and could cause those results to differ materially from those expressed
in the forward-looking statements: (i) materially adverse changes in economic
conditions in the markets served by the Company; (ii) the final outcome of FCC
rulemakings with respect to interconnection agreements, access charge reform and
universal service; (iii) the timing of presubscription for intraLATA toll
services; (iv) future state regulatory actions and economic conditions in the
Company's operating area; and (v) the extent, timing and success of competition
from others in the local telephone and intraLATA toll service markets.

                                       16
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                          PART II - OTHER INFORMATION
                                        
Item 1.    Legal Proceedings

           For background concerning the Company's contingent liabilities under
           the Plan of Reorganization governing the divestiture by AT&T Corp.
           (formerly American Telephone and Telegraph Company) of certain assets
           of the former Bell System Operating Companies with respect to private
           actions relating to pre-divestiture events, see Item 3 of the
           Company's Annual Report on Form 10-K for the year ended December 31,
           1996.


Item 6.    Exhibits and Reports on Form 8-K


           (a)  Exhibits:

                Exhibit Number

                27 Financial Data Schedule.


           (b)  Report on Form 8-K filed during the quarter ended September 30,
                1997:

                A Current Report on Form 8-K, dated August 14, 1997, was filed
                regarding the consummation of the merger of a wholly owned
                subsidiary of Bell Atlantic Corporation with and into NYNEX
                Corporation.

                                       17
<PAGE>
 
                        Bell Atlantic - Virginia, Inc.

                                  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, thereunto duly authorized.



                                    BELL ATLANTIC - VIRGINIA, INC.



Date:  November 13, 1997            By  /s/ Edwin F. Hall
                                       ---------------------------
                                            Edwin F. Hall
                                            Controller



    UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF NOVEMBER 10, 1997.

                                       18