CFS Financial Corp., the holding company for a thrift that operates 25 Continental Federal Savings Bank offices throughout Northern Virginia, said its profit fell 28 percent in the fiscal year ended June 30.

The Fairfax-based thrift earned $3.6 million ($1.20 a share) in fiscal 1990, compared with $5 million ($1.66) in fiscal 1989.

CFS linked the drop to additions to its reserve for possible loan losses and to the $1.1 million one-time gain in fiscal 1989 from a subsidiary's sale of two real estate projects. The company added $2.9 million to its reserve for loan losses in fiscal 1990, compared with $1.4 million in fiscal 1989. Offsetting that, CFS realized $1.3 million in pretax gains from the sale of Federal Home Loan Mortgage Corp. stock.

For the fourth quarter, CFS said, its earnings rose 6 percent, to $1.7 million (56 cents), compared with $1.6 million (53 cents) in the fiscal 1989 fourth quarter. Total assets stood at $1.1 billion as of June 30.

Allan R. Plumley, CFS president and chief executive officer, said the thrift exceeds capital and asset requirements for savings and loans, and it passed a recent Office of Thrift Supervision examination "with flying colors."

Besides its 25 Northern Virginia offices, Continental Federal also has two loan production offices in Tidewater Virginia, a recreational marine financing company based in Forestville and real estate and insurance brokerage subsidiaries.

Waverly Inc., a Baltimore-based printing and publishing company, said its profit increased 35 percent in the second quarter, to $1.1 million (27 cents a share) from $790,000 (22 cents) a year ago. Revenue increased 16 percent, to $29.6 million from $25.6 million last year.

In the first six months of the year, Waverly earned $2.2 million (59 cents), more than triple the $726,000 (20 cents) it earned a year ago. Revenue in the half increased 17 percent, to $54.8 million from $46.8 million.