FORM 10-QSB

                     U.S. SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549


(X)     QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
          OF THE SECURITIES EXCHANGE ACT OF 1934



        For the quarterly period ended September 30, 2000
                                       ------------------

                                       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 0-24674
                                                -------


                              SWVA BANCSHARES, INC
                              --------------------

    VIRGINIA                                                  54-1721629
----------------                                           -----------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                           Identification No.)

302 Second Street, SW, Roanoke Virginia                       24011-1597
---------------------------------------                     --------------
(Address of Principal executive offices)                      (Zip Code)

Registrant's telephone number, including area code  (540) 343-0135
                                                    --------------


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by  Section  13 and 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
    ------       ------

The  number of shares  outstanding  of each of the  issuer's  classes  of common
stock, as of November 10, 2000: $0.10 par value - 423,612 common shares.

Transitional Small Business Disclosure Format (check one):

Yes           No    X
    ------       ------


<PAGE>



                      SWVA BANCSHARES, INC. & SUBSIDIARIES


                                      INDEX

        ================================================================



PART I.           FINANCIAL INFORMATION                                     PAGE
                  =====================                                     ====



Item 1.  Financial Statements

                  Consolidated Statements of Financial Condition
                  at September 30, 2000 (unaudited)  and June 30, 2000         1

                  Consolidated Statements of Income for the
                  Three Months Ended September 30, 2000 and
                  September 30, 1999 (unaudited)                               2

                  Consolidated Statements of Comprehensive Income
                  for the Three Months Ended September 30, 2000 and
                  September 30, 1999 (unaudited)                               3

                  Consolidated Statements of Cash Flows for the
                  Three Months Ended September 30, 2000 and
                  September 30, 1999 (unaudited)                               4

                  Notes to Unaudited Interim Consolidated
                  Financial Statements                                         5



Item 2.  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                          7


PART II.          OTHER INFORMATION                                           11
                  =================


<PAGE>

                       SWVA BANCSHARES, INC & SUBSIDIARIES
                 Consolidated Statements of Financial Condition
                                 (In thousands)

                                     Assets
<TABLE>
<CAPTION>
                                                                    Sept 30    June 30
                                                                     2000        2000
                                                                   --------    --------
                                                                       (Unaudited)
<S>                                                              <C>         <C>
Cash and cash equivalents                                          $  1,917    $  2,060
Interest-bearing deposits                                               298       1,685
Investment & Mortgage Backed Securities:
  Held to Maturity, at amortized cost                                   230         254
  Available for Sale, at fair value                                  21,489      21,517
  Restricted at cost                                                    585         585
Loans held for sale                                                     774         857
Loans receivable, net                                                55,129      53,610
Foreclosed property                                                     200         186
Property and equipment, net                                           1,664       1,681
Accrued interest receivable                                             659         607
Prepaid expenses and other assets                                       881         919
                                                                   --------    --------

    Total assets                                                   $ 83,826    $ 83,961
                                                                   ========    ========

                      Liabilities and Stockholders' Equity
Deposits                                                           $ 66,634    $ 64,748
Advances from Federal Home Loan Bank                                  9,450      11,700
Advances from borrowers
  for taxes and insurance                                               368         208
Other liabilities and deferred income                                   520         563
                                                                   --------    --------

    Total liabilities                                                76,972      77,219
                                                                   --------    --------

Stockholders' Equity
Preferred Stock, 275,000 shares
   authorized, no shares issued or
   outstanding
Common stock, $.10 par value, 2,225,000
   shares authorized, 423,612 outstanding
   as of September 30, 2000 and as of June 30, 2000                      42          42
Additional paid-in capital                                            2,832       2,824
Dividends declared and paid                                             (81)       (152)
Less unearned ESOP shares (18,258 shares)                              (182)       (182)
Less unearned MSBP shares (11,767 shares)                              (199)       (199)
Retained earnings
 (substantially restricted)                                           5,172       5,304
Valuation allowance
  marketable equity securities                                         (730)       (895)
                                                                   --------    --------

  Total Stockholders' Equity                                          6,854       6,742
                                                                   --------    --------

  Total Liabilities
        and Stockholders' Equity                                   $ 83,826    $ 83,961
                                                                   ========    ========

Book Value Per Share (not in thousands)                            $  16.18    $  15.91
                                                                   ========    ========
</TABLE>
                                        1
<PAGE>
                     SWVA BANCSHARES, INC. AND SUBSIDIARIES
                        Consolidated Statements of Income
                      (In thousands except per share data)

                                                   Three Months Ended
                                                        Sept 30
                                                   -------------------
                                                     2000     1999
                                                     ----     ----
                                                      (Unaudited)
Interest income
  Loans                                             $1,174   $  930
  Mortgage-backed and related securities               146      161
  U. S. Government obligations including agencies      206      207
  Municipal Bonds                                       30       30
  Other investments, including overnight deposits       46      123
                                                    ------   ------
Total interest income                                1,602    1,451
                                                    ------   ------

Interest expense
  Deposits                                             788      632
  Borrowed funds                                       146      157
                                                    ------   ------
         Total interest expense                        934      789
                                                    ------   ------

         Net interest income                           668      662

Provision for credit losses                             14        3
                                                    ------   ------

         Net interest income after
           provision for credit losses                 654      659
                                                    ------   ------

Noninterest income
  Loan and other customer service fees                  63       57
  Gain on sale of mortgage loans                        23       49
  Gross rental income                                   26       25
  Loss (gain) on Available for Sale Investments          -        -
  Other                                                  -        -
                                                    ------   ------
         Total noninterest income                      112      131
                                                    ------   ------

Noninterest expenses
  Personnel                                            368      349
  Office occupancy and equipment                        85       86
  Data processing                                       68       58
  Federal insurance of accounts                          3        9
  Cost associated with pending merger                  124        -
  Other                                                 91      106
                                                    ------   ------
         Total noninterest expenses                    739      608
                                                    ------   ------

         Income before income taxes                     27      182
         Provision for income taxes                      7       58
                                                    ------   ------

         Net income                                 $   20   $  124
                                                    ======   ======

Basic earnings per share                            $  .05   $  .31
Diluted earnings per share                          $  .05   $  .31
Cash dividends per share                            $  .20   $  .20

                                        2

<PAGE>




                     SWVA BANCSHARES, INC. AND SUBSIDIARIES
                 Consolidated Statements of Comprehensive Income
                                 (In thousands)

                                                  Three Months Ended
                                                        Sept 30
                                                 ---------------------
                                                 2000             1999
                                                 ----             ----
                                                     (Unaudited)
Net Income                                       $ 20             $124

Other comprehensive income, net of tax

         Unrealized gains (losses) on securities  165             (153)
                                                 ----            ------

Comprehensive Income (Loss)                      $185            ($ 29)
                                                 ====            =====

                                        3

<PAGE>



                      SWVA BANCSHARES, INC. & SUBSIDIARIES
                      Consolidated Statements of Cash Flow
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                                                             Sept 30
                                                                        2000         1999
                                                                        ----         -----
                                                                           (Unaudited)
<S>                                                                 <C>             <C>
Operating Activities
    Net Income                                                         $ 20            $124
Adjustments to Reconcile Net Income to Net Cash
        Provided by operating activities
        MSBP Shares Allocated                                             -              13
        Provision for credit losses                                      14               3
        Provision for depreciation and amortization                      28              29
        Provision for Deferred Income Tax                                 -               -
        Loans Originated for Sale                                    (2,003)         (3,998)
        Proceeds from sales of loans originated for sale              2,109           3,710
        Gain on Sale of Loans, from fees                                (23)            (49)
        Gain on Sale of Real Estate                                       -               -
        Gain on Disposal of Property and Equipment                        -               -
        Net gain on sale of investments, available for sale               -               -
        Net (increase) decrease in Other Assets                         (96)             40
        Net increase in Other Liabilities                               125             167
                                                                     -------         -------
      Net cash provided by operating activities                         174              39
                                                                    --------        --------

Investing activities
    Proceeds from sale of property and equipment                          -               -
    Proceeds from sale of FHLB Stock                                      -             109
    Proceeds from maturity of investments
        and interest-bearing deposits                                 1,387           1,856
    Proceeds from sale of available for sale investments                  -               -
    Purchase of investments and interest-bearing deposits                 -          (1,487)
    Purchase of available for sale investments                            -               -
    Proceeds from sale of foreclosed real estate                          -               -
    Purchase of FHLB Stock                                                -               -
    Purchase of foreclosed real estate                                    -               -
    Purchase of property and equipment                                  (11)            (23)
    Net increase in loans                                            (1,547)         (1,169)
    Purchase of loans                                                     -            (600)
    Principal repayments on Mortgage Backed Securities                  300             271
                                                                     ------         -------
        Net cash provided by (used in) investing activities             129          (1,068)
                                                                     ------         -------

Financing activities
    Curtailment of advances and other borrowings                     (3,750)         (4,000)
    Proceeds from advances and other borrowings                       1,500           1,000
    Net increase in savings deposits                                  1,886           3,786
    Repurchase of stock                                                   -               -
    Dividends paid                                                      (81)            (76)
                                                                     -------          ------
    Net cash used in financing activities                              (445)            710
                                                                      -----           ------

Decrease in cash and cash equivalents                                  (142)           (319)

Cash and cash equivalents at beginning of period                      2,059           2,454
                                                                    -------         -------

Cash and cash equivalents at end of period                          $ 1,917         $ 2,135
                                                                    =======         =======
</TABLE>

                                        4
<PAGE>

                      SWVA BANCSHARES, INC. & SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

The accompanying  unaudited interim consolidated  financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions  to Form 10-QSB.  Accordingly,
they do not include all of the information  and footnotes  required by generally
accepted accounting principles for complete financial statements.

The accompanying  consolidated financial statements include the accounts of SWVA
Bancshares,  Inc.  ("Company")  and  its  wholly-  owned  subsidiary,  Southwest
Virginia Savings Bank, FSB ("Bank") and its wholly-owned  subsidiary,  Southwest
Virginia  Service  Corporation.   All  significant   intercompany  balances  and
transactions have been eliminated in consolidation.

In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for  fair  presentation  have  been  included.
Operating  results  for the  three  months  ended  September  30,  2000  are not
necessarily  indicative  of the results that may be expected for the year ending
June 30, 2001.

NOTE 2 -- EARNINGS PER SHARE

The  following  table  sets  forth  the  reconciliation  of the  numerators  and
denominators of the basic and diluted earnings per share (EPS) computations:

<TABLE>
<CAPTION>
                                                                  Three Months Ended
                                                                 ---------------------
                                                                      September 30,
                                                                 ---------------------
                                                                    2000        1999
                                                                 ---------    --------
                                                                      (Unaudited)
                                                        (Dollars in thousands except per share data)
<S>                                                             <C>         <C>
         Numerator:
(a) Net income available to shareholders                         $      20   $     124
                                                                 =========   =========

         Denominator:
         Weighted-average shares outstanding                       423,612     423,612
         Less: ESOP weighted-average shares outstanding            (18,258)    (22,819)
                                                                 ---------   ---------

(b) Basic EPS weighted-average shares outstanding                  405,354     400,793

         Effect of dilutive securities:
           Incremental shares attributable to the Stock Option           -           -
           Plan and Management Stock Bonus Plan                          -           -
                                                                 ---------   ---------

(c) Diluted EPS weighted-average shares outstanding                405,354     400,793
                                                                 =========   =========

         Basic earnings per share (a/b)                          $     .05   $     .31
                                                                 =========   =========

         Diluted earnings per share (a/c)                        $     .05   $     .31
                                                                 =========   =========
</TABLE>


                                        5

<PAGE>



NOTE 3 -- FASB Statement on Reporting Comprehensive Income

Effective July 1, 1998, the Company  adopted FASB Statement No. 130,  "Reporting
Comprehensive Income." Statement No. 130 requires the reporting of comprehensive
income in addition to net income from operations. Comprehensive income is a more
inclusive  financial  reporting  methodology that includes certain disclosure of
certain  financial  information that has historically not been recognized in the
calculation of net income.

The Company had an unrealized  gain on securities held as available for sale for
the three  months  ended  September  30,  2000 of  $165,000  after tax versus an
unrealized  loss of $153,000 after tax for the three months ended  September 30,
1999. The before tax and after tax amount,  as well as the tax (expense) benefit
is summarized below.

                                                              Tax
                                             Before         (Expense)    After
                                              Tax            Benefit      Tax
                                              ---            -------      ---

Three months ended September 30, 2000:         $250           ($85)       $165
         Unrealized gains on securities

Three months ended September 30, 1999:
         Unrealized gains on securities       ($232)           $79       ($153)



NOTE 4 - Proposed Merger

On August 8, 2000, the Company  announced a proposed merger with FNB Corporation
of Christiansburg, Virginia. Terms of the agreements require the stockholders of
the Company to receive  consideration  valued at $20.25,  consisting of cash and
stock  in  FNB  Corporation,  subject  to  certain  restrictions  regarding  the
allocation  of cash and  stock  consideration.  Consummation  of the  merger  is
contingent upon the approval of the Company's stockholders and state and federal
regulators, as well as the conditions under the merger agreement.


                                        6

<PAGE>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Comparison of Financial Condition at September 30, 2000 and June 30, 2000
-------------------------------------------------------------------------

Total assets decreased  $135,000 or 0.16% from $83.9 million at June 30, 2000 to
$83.8 million at September 30, 2000. Net loans receivable increased $1.5 million
or 2.86% to $55.1  million at September  30, 2000 from $53.6 million at June 30,
2000 due to increased  activity in small business loans and greater retention of
mortgage production in the loan portfolio.

Interest-bearing  deposits representing  investment in other Bank' certificates,
decreased  $1.4 million or 82.31% from $1.7 million at June 30, 2000 to $298,000
at September  30, 2000.  The decrease was mainly due to a decision by management
to use funds to fund mortgage loans instead of placing them in  certificates  of
deposits with other financial institutions.  Cash and cash equivalents decreased
$143,000  or 6.94%  from  $2.1  million  at June  30,  2000 to $1.9  million  at
September 30, 2000 due mainly to increased cash needed for funding  loans.  Held
to Maturity  Investments  decreased  $24,000  from  $254,000 at June 30, 2000 to
$230,000 at September 30, 2000. Available for Sale Investments decreased $28,000
from $21.5  million at June 30, 2000 to $21.4  million at September 30, 2000 due
to principal paybacks on Mortgage Backed Securities.

At June 30,  2000,  three loans were added to  foreclosed  property due to their
delinquency  status.  The delinquent  interest due on these loans  increased the
balance by $14,000 from  $186,000 at June 30, 2000 to $200,000 at September  30,
2000. The foreclosed properties consist of three loans, each of which is secured
by single family real estate. No loss is anticipated.

Classified  assets  totaled  $365,000,  of  which  $354,000  was  classified  as
substandard,  $9,000 as doubtful and $2,000 as loss. Of the $354,000  classified
as  substandard,  $334,000  single family  mortgage  loans and $20,000  consumer
loans.  The loan  classified  as  doubtful  is a secured  auto loan and the loan
classified as loss is an unsecured consumer loan.

Deposits increased $1.9 million, or 2.91% from $64.7 million at June 30, 2000 to
$66.6  million at  September  30,  2000 due mainly to special  rates  offered on
certificates of deposits.  The funds received on these  certificates was used to
fund loans and to decrease  the amount of borrowed  funds.  Core  deposits  were
$19.9 million or 29.98% of total savings.

At September 30, 2000,  there was $9.5 million  outstanding in advances from the
Federal Home Loan Bank of Atlanta as compared to $11.7  million  outstanding  at
June 30, 2000.

Advances from borrowers for taxes and insurance increased $160,000 or 76.92% due
to the  accumulation  of escrow  for real  estate  taxes to be paid  during  the
quarter  ending  December  31,  2000.  Other  liabilities  and  deferred  income
decreased $43,000 or 7.64%.

Results of Operations for the Three Months ended September 30, 2000
-------------------------------------------------------------------
and September 30, 1999
----------------------

         Net Income  decreased  $104,000 or 83.87%,  from $124,000 for the three
months ended  September 30, 1999 to $20,000 for the three months ended September
30, 2000. The decrease was due to costs  associated  with the Company's  pending
merger with FNB Corporation.

         Interest Income increased  $151,000,  or 10.41%,  from $1.5 million for
the three months ended  September  30, 1999 to $1.6 million for the three months
ended  September  30, 2000.  The  increase  was mainly due to  increased  income
resulting from an increase in small  business  loans and increased  retention of
mortgage loans in our portfolio.

         Interest  Expense  increased  $145,000 or 18.38% from  $789,000 for the
three  months  ended  September  30, 1999 to $934,000 for the three months ended
September  30, 2000.  The increase was due mainly to an increase in deposits due
to special certificates of deposit promotions and partially offset by a decrease
in borrowed funds.

         Net Interest Income  increased by $6,000 or 0.91% from $662,000 for the
three  months  ended  September  30, 1999 to $668,000 for the three months ended
September 30, 2000.

         Provision  for Credit  Losses.  The Bank made an addition of $14,000 to
the provision  for credit  losses for the quarter  ended  September 30, 2000, an
increase of $11,000 over the quarter  ending  September 30, 1999.  The allowance
for credit  losses was $232,000 at  September  30,  2000.  Attributable  to this
increase is the new emphasis on commercial  and consumer  loans which add credit
risk to the loan  portfolio  due to the risk  inherent  nature  of these  loans.
Policies and procedures and proper monitoring are in

                                        7

<PAGE>
Results  of  Operations  for the  three  months  ended  September  30,  2000 and
--------------------------------------------------------------------------------
September 30, 1999, cont.
-------------------------

place to insure quality extension of credit in order to minimize potential loss.

         Non-interest  Income decreased by $19,000,  or 14.50% from $131,000 for
the three months ended September 30, 1999 to $112,000 for the three months ended
September  30, 2000.  The decrease was mainly due to an decrease in gains on the
sale of mortgage loans during the quarter ended September 30, 2000 as more loans
were retained in the Bank's loan portfolio.

         Non-interest Expense increased by $131,000, or 21.55% from $608,000 for
the three months ended September 30, 1999 to $739,000 for the three months ended
September 30, 2000. The increase was due to costs  associated with the Company's
pending merger with FNB Corporation.

         Provision for income taxes The provision for income taxes for the three
months  ended  September  30, 2000 was $7,000  compared to $58,000 for the three
months ended  September 30, 1999.  The decrease was due to decreased  income for
the quarter ended September 30, 2000.

Regulatory Capital Requirements

OTS capital  regulations  require  savings  institutions  to meet three  capital
standards:  (1) tangible capital equal to 1.5% of total adjusted  assets,  (2) a
leverage ratio (core  capital)  equal to at least 3.0% of total adjusted  assets
and (3) a risk-based  capital  requirement equal to 8.0% of total  risk-weighted
assets.

As shown below, the Bank's tangible,  core and risk-based capital  significantly
exceed all applicable  regulatory  capital  requirements of the OTS at September
30, 2000:
                                                                      Percent of
                                                            Amount      Assets

                  GAAP Capital............................. $7,404       8.68%
                                                            ======       ====

                  Tangible Capital......................... $7,404       8.68%
                  Tangible Capital Requirement.............  1,280       1.50%
                                                            ------       ----
                  Excess................................... $6,124       7.18%
                                                            ======       ====

                  Core Capital............................. $7,404       8.68%
                  Core Capital Requirement.................  2,559       3.00%
                                                            ------       ----
                  Excess................................... $4,845       5.68%
                                                            ======       ====

                  Total Risk-Based Capital................. $7,636      15.27%
                  Risk-Based Capital Requirement...........  4,001       8.00%
                                                            ------      -----
                  Excess................................... $3,635       7.27%
                                                            ======      =====

Management  believes that under current  regulations,  the Bank will continue to
meet its minimum capital  requirements in the foreseeable future.  Events beyond
the control of the Bank,  such as  increased  interest  rates or downturn in the
economy  in areas in which  the Bank  operates  could  adversely  affect  future
earnings  and as a result,  the  ability of the Bank to meet its future  minimum
capital requirements.

Liquidity

The Bank's  liquidity is a measure of its ability to fund loans,  withdrawals of
deposits and other cash outflows in a cost effective manner.  The Bank's primary
sources of funds are deposits and proceeds from principal and interest  payments
on loan and mortgage backed  securities.  The Bank also obtains funds from sales
and maturities of investment securities,  short-term investments and borrowings,
namely advances from the FHLB of Atlanta.  The Bank uses such funds primarily to
meet commitments on existing and continuing loan  commitments,  to fund maturing
time  deposits and savings  withdrawals  and to maintain  liquidity.  While loan
payments,  maturing investments and mortgage-backed  securities are a relatively
predictable source of funds, deposit flows and loan prepayments

                                        8
<PAGE>

are greatly  influenced  by general  interest  rates,  economic  conditions  and
competition.  The Bank's liquidity is also influenced by the level of demand for
funding loan originations.

The Bank is required  under federal  regulations to maintain  certain  specified
levels of "liquid  investments,"  which include certain United States government
obligations and other approved investments. Current regulations require the Bank
to maintain liquid assets of not less than 4% of its net  withdrawable  accounts
plus short term borrowings. Those levels may be changed from time to time by the
regulators  to  reflect  current  economic  conditions.  The  Bank's  regulatory
liquidity was 24.38% at September 30, 2000 and 36.58% as of June 30, 2000.


Impact of Inflation and Changing Prices

The  consolidated  financial  statements  of  the  Company  and  notes  thereto,
presented  elsewhere  herein,  have been prepared in accordance with GAAP, which
require the measurement of financial  position and operating results in terms of
historical  dollars without  considering  the change in the relative  purchasing
power of money over time due to inflation.  The impact of inflation is reflected
in the  increased  cost of the  Company's  operations.  Unlike  most  industrial
companies,  nearly all the assets and  liabilities of the Company are financial.
As a result,  interest rates have a greater impact on the Company's  performance
than do the  effects  of  general  levels of  inflation.  Interest  rates do not
necessarily  move in the same  direction  or to the same extent as the prices of
goods and services.




                                        9

<PAGE>



                      SWVA BANCSHARES, INC. & SUBSIDIARIES


                                     PART II

Item 1.  Legal Proceedings

                  Not applicable.

Item 2.  Changes in Securities and Use of Proceeds

                  Not applicable.

Item 3.  Defaults upon Senior Securities

                  Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders.

                  Not applicable.

Item 5.  Exhibits and Reports on Form 8-K.

         During the quarter  ended  September  30,  2000,  the  Company  filed a
Current  Report on Form 8-K dated  August 7, 2000 to report  that it had entered
into a merger agreement with FNB Corporation. (Items 5 and 7).



                                       10

<PAGE>


                      SWVA BANCSHARES, INC. & SUBSIDIARIES

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant has duly caused this report to be signed by the undersigned thereunto
duly authorized.

                              SWVA Bancshares, Inc.


Date:    November 10, 2000           By:   /s/ D. W. Shilling
                                          --------------------------------------
                                     D. W. Shilling
                                     President, Chief Executive Officer,
                                     Chief Financial Officer, and Director


Date:    November 10, 2000           By:   /s/  Mary G. Staples
                                          --------------------------------------
                                     Mary G. Staples
                                     Controller/Treasurer
                                     Principal Financial Officer



                                       11