Eastern Virginia Bankshares, Inc., Sonabank, Southern Trust Mortgage
management enter into agreement with Middleburg Bank to purchase Middleburg
Bank's interests in Southern Trust Mortgage
TAPPAHANNOCK, Va., March 27, 2014
TAPPAHANNOCK, Va., March 27, 2014 /PRNewswire/ -- Eastern Virginia Bankshares,
Inc. (NASDAQ: EVBS), the holding company for EVB, Southern National Bancorp of
Virginia Inc. (NASDAQ: SONA), the holding company for Sonabank, and Jerry
Flowers of Southern Trust Mortgage (STM), announced today that the two banks
and Jerry Flowers have reached an agreement with Middleburg Bank 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 EVB's
ability to positively impact the lives of our customer base with mortgage
products suited to every economic spectrum.
The continuation of our seven year relationship will help expand our consumer
real estate services with additional STM loan officers in more of our EVB
branch locations. STM will originate non-conforming residential mortgage loans
for EVB's residential mortgage loan portfolio in their markets in accordance
with credit criteria provided by EVB.
Joe Shearin, CEO of Eastern Virginia Bankshares, Inc, and EVB stated "We have
worked with Southern Trust Mortgage for many years and are excited to build
upon this relationship which will help to expand our existing mortgage
products while continuing to provide high quality service to our customers.
Southern Trust is a well managed company that has come through many mortgage
industry business cycles with a solid reputation for quality and customer
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 seven years. Having EVB and Sonabank as partners,
will allow us to expand in their market areas and will give us banking
partners that not only want to be a part of STM's existing model but would
like for us to expand our mortgage footprint."
Eastern Virginia Bankshares, Inc. is a bank holding company with assets of
$1.0 billion at December 31, 2013. The Company's banking subsidiary, EVB,
operates twenty-one full service branches in eastern Virginia located in the
counties of Essex, Gloucester, Hanover, Henrico, King William, Lancaster,
Middlesex, New Kent, Northumberland, Southampton, Surry and Sussex and the
City of Colonial Heights.
Certain statements contained in this release that are not historical facts may
constitute "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Examples of forward-looking statements
contained in this release include, but are not limited to: (i) the anticipated
closing of the transaction described in this release, (ii) statements of
expectations of Eastern Virginia Bankshares, Inc. (the "Company") or its
management or Board of Directors with respect to the future business
relationship with Southern Trust Mortgage; (iii) the future impact of the
transaction on the business of the Company and EVB; and (iv) statements of
assumptions underlying such statements.
Words such as "believes," "anticipates," "expects," "intends," "targeted,"
"continue," "remain," "will," "should," "may" and other similar expressions
are intended to identify forward-looking statements but are not the exclusive
means of identifying such statements.
Forward-looking statements involve risks and uncertainties that may cause
actual results to differ materially from those discussed in or implied by such
statements. Factors that could cause actual results to differ from those
discussed in or implied by the forward-looking statements include, but are not
limited to (a) changes in interest rates or other factors that adversely
affect the mortgage market; (b) changes in governmental regulation; (c) other
circumstances that may be out of the Company's control; and (d) other risk
factors disclosed on the Company's filings with the Securities and Exchange
Although the Company believes that its expectations with respect to the
forward-looking statements are based upon reliable assumptions and projections
within the bounds of its knowledge of its business and operations, there can
be no assurance that actual results, performance, actions or achievements of
the Company will not differ materially from any future results, performance,
actions or achievements expressed or implied by such forward-looking
statements. Readers should not place undue reliance on such statements, which
speak only as of the date of this report. The Company does not undertake any
steps to update any forward-looking statement that may be made from time to
time by it or on its behalf.
Contact: Joe A. Shearin, President/CEO
Eastern Virginia Bankshares, Inc.
NASDAQ Symbol: EVBS
SOURCE Eastern Virginia Bankshares, Inc.
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