Continental Federal Savings Bank of Fairfax has completed its conversion from a mutual to a stock institution.

The conversion, which became effective May 22, will have no effect on deposit accounts or loans at the bank, and deposits will continue to be insured by the Federal Savings and Loan Insurance Corp.

Continental Federal, which is a subsidiary of CFS Financial Corp., a Fairfax holding company, completed the conversion after raising $19.6 million in new capital, through a public sale of stock. The underwriting was co-managed by E.F. Hutton and Alex Brown & Sons.

New capital raised from the stock offering will be used for continuing expansion of the bank's business, including real estate, and corporate and consumer lending, said Allan R. Plumley Jr., president and chief executive officer.

The bank, which operated previously as Continental Federal Savings and Loan Association before converting to a mutual savings bank, owns and operates insurance, construction and real estate subsidiaries.

Formed in 1982 by a merger of Arlington-Fairfax Savings and Loan and First Federal Savings and Loan of Arlington, Continental Federal is Virginia's third largest thrift institution. It has assets of $928 million at the end of last year and operates 24 full-service offices in Northern Virginia and a loan production office in the Tidewater area of the state.

Continental Federal recently acquired land in the Chantilly area, where it will build a new operations center.