EXHIBIT 99.1

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SWVA [LOGO]
Bancshares, Inc.

                                  NEWS RELEASE
                                  ------------


Contact:          B. L. Rakes, President & CEO
                  540-343-0135

Date:             May 1, 1998


                              FOR IMMEDIATE RELEASE
                              ---------------------

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


             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".


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                              SWVA BANCSHARES, INC.
                  (Dollars in thousands, except per share data)

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                                   Nine Months Ended
                                                         Mar 31
                                                         ------
                                                      1998      1997
                                                      ----      ----
                                                      (unaudited)
Interest income                                      4,337      3,942
Interest expense                                     2,357      1,992
                                                   -------    -------

      Net interest income                            1,980      1,950
Provision for credit losses                             30          0
                                                   -------    -------

      Net interest income after
       provision for credit losses                   1,950      1,950
Noninterest income                                     291        293
Noninterest expense                                  1,628      1,959
                                                   -------    -------

      Income before income taxes                       613        284
Provision for income taxes                             229        112
                                                   -------    -------

Net Income                                         $   384    $   172
                                                   =======    =======

     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
                                                   ------------------
                                                      1998       1997
                                                      ----       ----
                                                       (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
                                                   -------    -------
      Total assets                                 $81,464    $70,753
                                                   =======    =======

Deposits                                           $68,666    $57,933
Advances FHLB                                        3,500      3,500
Accrued expenses and other liabilities                 911        718
Stockholders' Equity                                 8,387      8,602
                                                   -------    -------

      Total liabilities and stockholders' equity   $81,464    $70,753
                                                   =======    =======

Nonaccrual and 90 days past due loans              $     0    $    60

Total nonperforming assets                         $     0    $    60
                                                   =======    =======

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.