Sonabank, Southern Trust Mortgage Management and EVB Enter Into Agreement to
Purchase Middleburg Bank's Interests in Southern Trust Mortgage
MCLEAN, Va., March 26, 2014 (GLOBE NEWSWIRE) -- Southern National Bancorp of
Virginia Inc. (Nasdaq:SONA), the holding company for Sonabank, Jerry Flowers
of Southern Trust Mortgage (STM), and Eastern Virginia Bankshares
(Nasdaq:EVBS) the holding company for EVB announced today that the two banks
and Jerry Flowers have reached an agreement to purchase the 62 percent of STM
currently owned by Middleburg Bank. Upon the closing of the transaction, Jerry
Flowers and other STM executives will own 51.1 percent of STM, Sonabank will
own 44 percent and EVB will own 4.9 percent.
STM is a mortgage banking company headquartered in Virginia Beach. It was
founded in 1998 by Jerry Flowers, and has mortgage banking originators in
Virginia, Maryland, North Carolina and South Carolina. Southern Trust Mortgage
only originates retail mortgage production.
STM is an approved Fannie Mae, Freddie Mac, VA and FHA lender. In addition
Southern Trust Mortgage is one of a select few lenders to have received
approval from Ginnie Mae to issue securities on its behalf. Having all agency
approvals greatly expands the mortgage products and therefore expands
Sonabank's ability to positively impact the lives of our customer base with
mortgage products suited to every economic spectrum.Southern Trust Mortgage
is experienced in originating FHLB first time homebuyer grants for low to
moderate income borrowers in their lending footprint. Sonabank is
particularly excited about the future of FHLB programs for underserved markets
and low income borrowers.
This relationship will provide us a partnership in which to expand our
consumer real estate services with STM loan officers assigned to various
Sonabank branches.STM will originate non-conforming residential mortgage
loans for Sonabank's portfolio in its footprint in accordance with credit
criteria provided by Sonabank. Southern Trust Mortgage has a history of
originating portfolio loans for their banking partners with a focus on
compliance and risk management.This is similar to arrangements already in
place with Middleburg Bank.
Georgia Derrico, CEO of Sonabank commented: "Since its inception, Sonabank has
been oriented towards small and medium sized business lending. That will
continue. However, now we will be able to provide our customers with a full
array of residential mortgage products through our STM relationship. In
addition, the investment in STM will allow Sonabank to use its very strong
capital position, combined with the expertise of STM and its extraordinary
team to expand in an entirely new direction at a time when the rules on
residential mortgage lending have been rewritten to the benefit of bank
affiliated mortgage lenders."
Jerry Flowers, President of STM commented:"We are very excited to have
Sonabank as our new Banking partner along with EVB who we have been doing
business with for the past 7 years. Having Sonabank and EVB as partners will
allow us to expand in their market areas and gives us a banking partner that
not only wants to be a part of STM's existing model but would like for us to
expand our mortgage footprint."
The investment by Sonabank is subject to regulatory approval.
Southern National Bancorp of Virginia, Inc. is a bank holding company with
assets of $716 million at year end.Sonabank provides a range of financial
services to individuals and small and medium sized businesses. Sonabank has a
total of twenty branches, with fifteen of those branches in Virginia, located
in Fairfax County (Reston, McLean and Fairfax), in Charlottesville, Warrenton
(2), Middleburg, Leesburg (2), South Riding, Front Royal, New Market,
Haymarket, Richmond and Clifton Forge. Sonabank's other five branches are in
Maryland, in Rockville, Shady Grove, Germantown, Frederick and Bethesda.
In January 2014, Southern National Bancorp signed a definitive agreement to
acquire Prince George's Federal Savings Bank which is to be merged into its
subsidiary, Sonabank. The merger will give Sonabank four additional branches
in Upper Marlboro, Dunkirk, Brandywine and Huntingtown.
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that relate to future
events or the future performance of Southern National Bancorp of Virginia,
Inc. Forward-looking statements are not guarantees of performance or results.
These forward-looking statements are based on the current beliefs and
expectations of the respective management of Southern National Bancorp of
Virginia, Inc. and Sonabank and are inherently subject to significant
business, economic and competitive uncertainties and contingencies, many of
which are beyond their respective control. In addition, these forward-looking
statements are subject to assumptions with respect to future business
strategies and decisions that are subject to change. Actual results may differ
materially from the anticipated results discussed or implied in these
forward-looking statements because of numerous possible uncertainties. Words
like "may," "plan," "contemplate," "anticipate," "believe," "intend,"
"continue," "expect," "project," "predict," "estimate," "could," "should,"
"would," "will," and similar expressions, should be considered as identifying
forward-looking statements, although other phrasing may be used. Such
forward-looking statements involve risks and uncertainties and may not be
realized due to a variety of factors. Additional factors that could cause
actual results to differ materially from those expressed in the
forward-looking statements are discussed in the reports (such as Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q) filed by Southern
National Bancorp of Virginia, Inc. You should consider such factors and not
place undue reliance on such forward-looking statements. No obligation is
undertaken by Southern National Bancorp of Virginia, Inc. to update such
forward-looking statements to reflect events or circumstances occurring after
the issuance of this press release.
CONTACT: R. Roderick Porter, President
Phone: 202-464-1130 ext. 2406
Southern National Bancorp of Virginia Inc.
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