A former Prince William County bank executive was indicted by a federal grand jury in Alexandria yesterday on 10 counts of embezzlement and making false entries in bank records.

Wayne Shiflett, 21, former vice president of the State Bank of Prince William County, and son of former bank president Cecil Shiflett, was charged with the theft, embezzlement and misapplication of bank funds totaling more than $60,000 between March and July of 1980. Each count in the indictment carries a maximum penalty of five years' imprisonment and a $5,000 fine.

The indictment follows the resignation of both Wayne Shiflett and his father, who disclosed in the bank's annual report earlier this year that "In July of 1980 my son granted himself an unauthorized loan . . . . "

In July of this year Cecil Shiflett gave up the presidency of the state-chartered bank and resigned from its board. Shareholders were informed of the criminal investigation at a September meeting.

"What can we say?" bank president P. Richard Malloy said yesterday. "He Wayne Shiflett hasn't been associated with the bank in a long time."

The younger Shiflett began his career at the bank as a runner, was promoted to loan officer and then manager of the bank's Manassas branch before becoming a bank vice president, according to those familiar with the investigation. Assistant U.S. Attorney Nash W. Schott said the younger Shiflett was dismissed from the bank in August 1980.