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EXHIBIT 99.1

Southern National Bancorp of Virginia Inc. Reports Earnings of $1.6 Million for the Second Quarter and $3.1 million for the First Half of 2013 and Increases Dividend to $.07

MCLEAN, Va., July 25, 2013 (GLOBE NEWSWIRE) -- Southern National Bancorp of Virginia Inc. (Nasdaq:SONA), the holding company for Sonabank, announced today that net income for the quarter ended June 30, 2013 was $1.6 million and $3.1 million for the first half of 2013. That compares to $2.2 million and $4.1 million for the three and six months ended June 30, 2012. The second quarter of 2012 benefitted from a bargain purchase gain in conjunction with the HarVest acquisition which was partially offset by a writedown of other real estate owned ("OREO").

The Board of Directors declared a dividend of $.07 per share payable August 23, 2013 to shareholders of record on August 12, 2013. This was Southern National's seventh consecutive quarterly dividend and the fifth consecutive increase.

Overview

U.S. Treasury yields hit a cyclical low at the beginning of May 2013 with the 10 year U.S. Treasury yield hitting 1.6%. Since then it has risen over a percentage point to over 2.6%. That is a huge increase. It has resulted in a diminution in the fierce competition for refinancing loans which we wrote about last quarter, perhaps as a sense of reality began to pervade the market. Even so, we had payoffs of large loans of approximately $8.3 million during the quarter. However, that was offset this quarter by very strong loan closings of $36.0 million most of which closed near quarter-end.

Net Interest Income

Net interest income was $7.4 million in the quarter ended June 30, 2013 down from $7.8 million during the same period last year. The accretion of the discount on Greater Atlantic Bank's loans contributed $361 thousand to second quarter 2013 net interest income compared to $705 thousand during the second quarter of 2012. The accretion of the discount on HarVest's loans contributed $440 thousand in the second quarter of 2013 compared to $172 thousand during the second quarter of 2012. The cost of funds decreased from 1.16% for the quarter ended June 30, 2012, to 0.84% for the second quarter of 2013. Sonabank's net interest margin was 4.57% in the second quarter of 2013 compared to 5.07% during the comparable quarter last year and 4.94% during the first quarter of 2013.

Net interest income was $15.1 million during the six months ended June 30, 2013, compared to $15.5 million during the comparable period in the prior year. Approximately $805 thousand of the 2012 net interest income resulted from the recovery of discount recognized in purchase accounting during the first quarter of 2012 for two impaired loans acquired in the Greater Atlantic Bank acquisition following the receipt of payment from the borrowers. The total accretion of the discount on the Greater Atlantic Bank loan portfolio, including the aforementioned $805 thousand, amounted to $2.2 million in the first six months of 2012, compared to $808 thousand in the first half of 2013. The cost of funds decreased from 1.19% for the six months ended June 30, 2012, to 0.89% for the six months ended June 30, 2013. Sonabank's net interest margin was 4.76% in the first six months of 2013 compared to 5.32% during the same period last year.

Noninterest Income

During the second quarter of 2013 Sonabank had noninterest income of $448 thousand compared to noninterest income of $3.9 million during the second quarter of 2012. The decrease resulted primarily from the bargain purchase gain of $3.5 million from the HarVest transaction in the second quarter of 2012. In addition, there was an other than temporary impairment ("OTTI") of $235 thousand in one trust preferred security during the second quarter of 2012 compared to no OTTI charges during the second quarter of 2013. Income from bank owned life insurance ("BOLI") contributed $148 thousand during the second quarter of 2013 compared to $347 thousand the prior year quarter. The second quarter of 2012 was affected by a death benefit.

Noninterest income decreased from $4.9 million in the first six months of 2012 to $984 thousand in the first six months of 2013. The drivers of the decrease from the first half of 2012 were largely the same as the quarter except that during the first quarter of 2012 the bank sold the guaranteed portions of SBA loans and realized a $657 thousand gain.

Noninterest Expense

Noninterest expenses were $4.8 million and $9.7 million during the second quarter and the first half of 2013, respectively, compared to $7.2 million and $11.7 million during the same periods in 2012. Noninterest expenses for the second quarter of 2012 included the recognition of impairment in the values of five OREO properties in the Charlottesville market and one in the Culpeper market in the amount of $2.2 million. Also affecting the second quarter of 2012 were merger expenses relating to the HarVest transaction totaling $349 thousand, and other noninterest expenses related to the HarVest branches were $245 thousand. Occupancy and furniture and equipment expenses were $1.8 million during the first six months of 2013, compared to $1.6 million during 2012. Of this increase, $310 thousand resulted from operating five additional branches, four from the HarVest acquisition and one denovo. In addition, salaries and benefits expense has increased $627 thousand during the six months ended June 30, 2013, compared to 2012 due to the HarVest acquisition and other additional personnel. Full-time equivalent employees have increased from 137 at June 30, 2012, to 144 at June 30, 2013. Audit and accounting fees have decreased from $569 thousand during the six months ended June 30, 2012 to $251 thousand during the first six months of 2013. These fees were abnormally high in 2012 because of the restatement of 2010 and 2009 financial statements.

Loan Portfolio

The composition of Sonabank's loan portfolio consisted of the following at June 30, 2013 and December 31, 2012:

             
  Covered  Non-covered Total  Covered  Non-covered Total 
   Loans (1)  Loans  Loans  Loans (1)  Loans  Loans
  June 30, 2013 December 31, 2012
 Loans secured by real estate:             
Commercial real estate - owner-occupied   $ 3,662  $ 93,837  $ 97,499  $ 4,143  $ 93,288  $ 97,431
Commercial real estate - non-owner-occupied   6,028  140,929  146,957  10,246  130,152  140,398
Secured by farmland   103  517  620  --   1,479  1,479
Construction and land loans   52  31,076  31,128  1,261  44,946  46,207
Residential 1-4 family   19,067  62,544  81,611  21,005  61,319  82,324
Multi- family residential   598  21,924  22,522  614  18,774  19,388
Home equity lines of credit   28,954  7,776  36,730  31,292  9,178  40,470
Total real estate loans   58,464  358,603  417,067  68,561  359,136  427,697
             
 Commercial loans   1,261  105,752  107,013  2,672  99,081  101,753
 Consumer loans   87  1,338  1,425  88  1,623  1,711
Gross loans   59,812  465,693  525,505  71,321  459,840  531,161
             
 Less deferred fees on loans   7  (1,228)  (1,221)  7  (1,017)  (1,010)
 Loans, net of deferred fees   $ 59,819  $ 464,465  $ 524,284  $ 71,328  $ 458,823  $ 530,151
             
(1) Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement.

Loans, net of deferred fees, decreased $5.9 million from $530.2 million at the end of 2012 to $524.3 million at June 30, 2013, but increased $14.3 million from March 31, 2013. We had payoffs of large loans of approximately $8.3 million and $3.5 million in foreclosures during the quarter. However, that was offset this quarter by very strong loan closings of $36.0 million most of which closed near quarter-end.

Loan Loss Provision/Asset Quality

Non-covered OREO as of June 30, 2013 was $12.1 million compared to $13.2 million as of the end of the previous year. During the three months ended June 30, 2013 we had two foreclosures in the non-covered portfolio in the amount of $1.3 million and OREO sales of $617 thousand. For the six months ended June 30, 2013 we had four foreclosures in the non-covered portfolio totaling $1.6 million and OREO sales of $2.6 million. In the covered portfolio we had one foreclosure during the three months ended June 30, 2013 in the amount of $2.2 million and during the six months had two foreclosures totaling $4.0 million. In the second quarter of 2013, we sold the property foreclosed on in the first quarter of 2013 for $1.9 million which resulted in a small gain.  

Non-covered nonaccrual loans were $4.6 million (excluding $1.6 million of loans fully covered by SBA guarantees) at June 30, 2013 compared to $5.0 million (excluding $2.6 million of loans fully covered by SBA guarantees) at the end of last year. The ratio of non-covered non-performing assets (excluding the SBA guaranteed loans) to non-covered assets decreased from 2.80% at the end of 2012 to 2.60% at June 30, 2013. The portions of these SBA loans that were unguaranteed were charged off.

Southern National Bancorp of Virginia's allowance for loan losses as a percentage of non-covered loans at June 30, 2013 was 1.55%, compared to 1.52% at the end of 2012. Management believes the allowance is adequate at this time but monitors trends in past due and non-performing loans to determine whether the allowance should be increased.

Securities Portfolio

Investment securities, available for sale and held to maturity, were $85.4 million at June 30, 2013 and $86.4 million at December 31, 2012.

Investment activity during the first six months of 2013 was concentrated on municipal bonds (as it was in the fourth quarter of 2012) and to a lesser extent on callable agencies. The yields available on FNMA and FHLMC mortgage pass through securities where we have historically invested excess cash have been adversely affected by the Federal Reserve Board's third round of quantitative easing and its purchases of $40 billion a month in mortgage-backed securities. The yields on higher quality, bank qualified municipal bonds have been significantly higher on a taxable equivalent basis although they do entail some extension risk. We went into the strategy of investing in municipals with an overall asset sensitive balance sheet and are monitoring it to ensure we do not get outside our risk tolerance level. Through the end of the second quarter of 2013, we had assembled a portfolio of $13.0 million with a taxable equivalent yield of 3.02% and ratings as follows:

Rating   Amount
Service Rating (in thousands)
Moody's Aaa  $ 505
Moody's Aa2  3,208
Moody's Aa3  724
Standard & Poor's AAA  2,682
Standard & Poor's AA  3,690
Standard & Poor's AA-  2,237
     $ 13,046

As of June 30, 2013 we owned pooled trust preferred securities as follows:

                     Previously   
                  % of Current  Recognized   
                  Defaults and  Cumulative   
    Ratings         Estimated Deferrals to  Other   
  Tranche When Purchased Current Ratings   Fair Total  Comprehensive   
Security Level Moody's Fitch Moody's Fitch Par Value Book Value Value Collateral  Loss (1)   
            (in thousands)      
ALESCO VII A1B Senior Aaa AAA Baa3 BB  $ 6,777  $ 6,124  $ 4,097 24%  $ 281  
MMCF III B Senior Sub A3 A- Ba1 CC  421  413  255 30%  8  
             7,198  6,537  4,352    $ 289  
                       
                    Cumulative Other Cumulative
                     Comprehensive  OTTI Related to 
Other Than Temporarily Impaired:                   Loss (2)  Credit Loss (2) 
TPREF FUNDING II Mezzanine A1 A- Caa3 C  1,500  515  520 44% $ 626  $ 359
TRAP 2007-XII C1 Mezzanine A3 A C C  2,132  56  140 39%  783  1,293
TRAP 2007-XIII D Mezzanine NR A- NR C  2,039  --   103 29%  7  2,032
MMC FUNDING XVIII Mezzanine A3 A- Ca C  1,081  27  254 30%  363  691
ALESCO V C1 Mezzanine A2 A C C  2,150  475  548 23%  1,014  661
ALESCO XV C1 Mezzanine A3 A- C C  3,210  30  152 35%  621  2,559
ALESCO XVI C Mezzanine A3 A- C C  2,136  119  576 16%  837  1,180
             14,248  1,222  2,293    $ 4,251  $ 8,775
                       
Total            $ 21,446  $ 7,759  $ 6,645      
                       
                       
(1) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion
(2) Pre-tax

Each of these securities has been evaluated for potential impairment under Accounting Standards Codification Topic 325. In performing a detailed cash flow analysis of each security, Sonabank works with independent third parties to identify the most reflective estimate of the cash flow estimated to be collected. If this estimate results in a present value of expected cash flows that is less than the amortized cost basis of a security (that is, credit loss exists), an OTTI is considered to have occurred. If there is no credit loss, any impairment is considered temporary.

The analyses resulted in no OTTI charges related to credit on the trust preferred securities during the second quarter of 2013, compared to OTTI charges related to credit on the trust preferred securities totaling $235 thousand for three months ended June 30, 2012. During the six months ended June 30, 2013 there were OTTI charges totaling $3 thousand, compared to $237 thousand during the same period last year.

Deposits

Total deposits were $545.6 million at June 30, 2013 compared to $551.0 million at December 31, 2012. Certificates of deposit increased $14.0 million during the six months. There was a decrease in money market accounts of $16.8 million during the six months ended June 30, 2013. Noninterest-bearing deposits were $45.3 million at June 30, 2013 and $49.6 million at December 31, 2012. Noninterest-bearing deposits were historically high at December 31, 2012, primarily because of large balances held by title companies.

Stockholders' Equity

Total stockholders' equity increased from $103.2 million at December 31, 2012 to $104.9 million at June 30, 2013 as a result of the retention of earnings. Our Tier 1 Risk Based Capital Ratios were 18.84% and 18.73% for Southern National Bancorp of Virginia, Inc. and Sonabank, respectively, as of June 30, 2013.

Southern National Bancorp of Virginia, Inc. is a bank holding company with assets of $706.7 million at June 30, 2013. Sonabank provides a range of financial services to individuals and small and medium sized businesses. Sonabank has fifteen 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, and five branches in Maryland, in Rockville, Shady Grove, Germantown, Frederick and Bethesda. In the first quarter of 2013, the former HarVest Bank branch in Bethesda was relocated to a far superior location on Wisconsin Avenue.

Forward-Looking Statements

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.

     
Southern National Bancorp of Virginia, Inc.    
McLean, Virginia    
         
Condensed Consolidated Balance Sheets    
(Unaudited)    
(in thousands)        
  June 30, December 31,    
  2013 2012    
Assets        
Cash and cash equivalents  $ 28,545  $ 39,200    
Investment securities-available for sale  2,034  2,391    
Investment securities-held to maturity  83,354  84,051    
Stock in Federal Reserve Bank and Federal Home Loan Bank  5,240  6,212    
Loans receivable, net of unearned income  524,284  530,151    
Allowance for loan losses  (7,296)  (7,066)    
Net loans  516,988  523,085    
Intangible assets  10,195  10,440    
Bank premises and equipment, net  6,286  6,552    
Bank-owned life insurance  18,079  17,782    
FDIC indemnification asset  6,308  6,735    
Other assets  29,695  27,364    
Total assets  $ 706,724  $ 723,812    
         
Liabilities and stockholders' equity        
Demand deposits  $ 67,347  $ 72,418    
Money market accounts  146,461  163,233    
Savings accounts  12,148  9,618    
Time deposits  319,682  305,708    
Securities sold under agreements to repurchase and other  short-term borrowings  20,530  33,411    
Federal Home Loan Bank advances  30,250  30,250    
Other liabilities  5,370  5,998    
Total liabilities  601,788  620,636    
Stockholders' equity  104,936  103,176    
Total liabilities and stockholders' equity  $ 706,724  $ 723,812    
     
     
         
Condensed Consolidated Statements of Income
(Unaudited)
 (in thousands)        
  For the Quarters Ended For the Six Months Ended
  June 30, June 30,
  2013 2012 2013 2012
         
Interest and dividend income  $ 8,549  $ 9,361  $ 17,572  $ 18,435
Interest expense  1,175  1,528  2,428  2,962
Net interest income  7,374  7,833  15,144  15,473
Provision for loan losses  725  1,325  1,818  2,775
Net interest income after provision for loan losses  6,649  6,508  13,326  12,698
Account maintenance and deposit service fees  203  206  396  402
Income from bank-owned life insurance  148  347  297  500
Bargain purchase gain on acquisition  --   3,484  --   3,484
Gain on sale of loans  --   --   --   657
Net impairment losses recognized in earnings  --   (235)  (3)  (237)
Net gain (loss) on sale of available for sale securities  --   (13)  142  (13)
Gain on other assets  13  --   13  14
Other   84  81  139  121
Noninterest income   448  3,870  984  4,928
Employee compensation and benefits  2,176  1,970  4,422  3,795
Occupancy expenses  923  848  1,839  1,586
FDIC assessment  225  142  458  271
Change in FDIC indemnification asset  107  253  237  239
Loss on other real estate owned, net  62  2,201  118  2,386
Other expenses  1,305  1,749  2,675  3,384
Noninterest expense  4,798  7,163  9,749  11,661
Income before income taxes  2,299  3,215  4,561  5,965
Income tax expense   744  1,000  1,480  1,907
Net income  $ 1,555  $ 2,215  $ 3,081  $ 4,058
 
 
 
 
Financial Highlights
(Unaudited)
(Dollars in thousands except per share data)        
         
         
         
  For the Quarters Ended For the Six Months Ended
  June 30, June 30,
  2013 2012 2013 2012
         
Per Share Data :        
Earnings per share - Basic  $ 0.13  $ 0.19  $ 0.27  $ 0.35
Earnings per share - Diluted  $ 0.13  $ 0.19  $ 0.27  $ 0.35
Book value per share      $ 9.05  $ 8.89
Tangible book value per share      $ 8.17  $ 7.95
Weighted average shares outstanding - Basic  11,590,212  11,590,212  11,590,212  11,590,212
Weighted average shares outstanding - Diluted  11,634,525  11,594,033  11,623,422  11,592,747
Shares outstanding at end of period      11,590,212  11,590,212
         
Selected Performance Ratios and Other Data:        
Return on average assets 0.88% 1.30% 0.88% 1.26%
Return on average equity 5.95% 8.76% 5.96% 8.08%
Yield on earning assets 5.30% 6.07% 5.52% 6.33%
Yield on earning assets excluding discount accretion on loans acquired in GAB and HarVest acquisitions 4.80% 5.50% 5.01% 5.59%
Cost of funds 0.84% 1.16% 0.89% 1.19%
Cost of funds including non-interest bearing deposits 0.78% 1.07% 0.82% 1.10%
Net interest margin 4.57% 5.07% 4.76% 5.32%
Net interest margin excluding discount accretion on loans acquired in GAB and HarVest acquisitions 4.07% 4.51% 4.25% 4.57%
Efficiency ratio (1) 60.65% 59.99% 60.28% 56.90%
Net charge-offs (recoveries) to average loans 0.13% 0.28% 0.31% 0.46%
Amortization of intangibles  $ 123  $ 228  $ 246  $ 458
 
         
      As of
      June 30, December 31,
      2013 2012
         
Stockholders' equity to total assets     14.85% 14.25%
Tier 1 risk-based captial ratio     18.84% 18.33%
Intangible assets:        
Goodwill      $ 9,160  $ 9,160
Core deposit intangible      1,035  1,280
Total      $ 10,195  $ 10,440
         
Non-covered loans and other real estate owned (2):        
Nonaccrual loans (3)      $ 6,275  $ 7,628
Loans past due 90 days and accruing interest      --   -- 
Other real estate owned      12,119  13,200
Total nonperforming assets       $ 18,394  $ 20,828
Allowance for loan losses to total non-covered loans     1.55% 1.52%
Nonperforming assets excluding SBA guaranteed loans to total non-covered assets     2.60% 2.80%
         
(1) Excludes gains and write-downs on OREO, gains on sale of loans, gains/losses on sale of securities and impairment losses recognized in earnings.
(2) Applies only to non-covered Sonabank loans and other real estate owned.
(3) Nonaccrual loans include SBA guaranteed amounts totaling $1.6 million and $2.6 million at June 30, 2013 and December 31, 2012, respectively.
CONTACT: R. Roderick Porter, President
         Phone: 202-464-1130 ext. 2406
         Fax: 202-464-1134
         Southern National Bancorp of Virginia Inc.
         NASDAQ Symbol SONA
         Website: www.sonabank.com