RICHMOND, Va. -- In a move that caught analysts by surprise, William F. Shumadine resigned Thursday as president of Central Fidelity Bank, Virginia's fourth largest.

Mr. Shumadine, 49, said he simply got fed up with regulatory "overkill" and wanted to get into another line of work.

"The fun is gone," Mr. Shumadine said in a telephone interview. "The regulatory environment is such now that you really have to go by the book."

Learning to |Investment Side'

The 27-year bank veteran had long been considered a contender to succeed Carroll L. Saine as chairman and chief executive of the parent Central Fidelity Banks Inc. That changed in May when, in an unusual step, the $9.1 billion-asset holding company named its president, Lewis N. Miller Jr., as co-CEO.

Mr. Shumadine said that development had no effect on his decision to leave the bank. He also said there were no disagreements in the executive suite.

The company has been performing well. Earnings for the first nine months of 1993 were $77.2 million, up 37% from the year-ago period, despite an uptick in nonperforming real estate. Most of those profits were generated by the lead bank.

Mr. Shumadine said he had no immediate plans, but would spend the next few weeks mulling over his options. "My inclination is toward the investment side," he said, adding that he had no intention of returning to commercial banking.

Mr. Shumadine's direct responsibilities will be assumed by Jay O. Livingston, 46, an executive vice president running Central Fidelity's operations facility in Lynchburg. However, the company said Mr. Miller will serve as president of the bank.

|Took Everybody by Surprise'

Mr. Shumadine is also giving up his seat on the holding company's board of directors.

Analysts said they had no warning of the departure. "It was an announcement that kind of took everybody by surprise," said David M. West, with Davenport & Co. in Richmond.

In late trading Thursday, Central Fidelity's stock was up $1, to $27.50. Analysts said shares were regaining ground had lost earlier on concerns about a drop in the prime interest rate.

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