MCLEAN, Va., Jan. 24, 2019 /PRNewswire/ -- Southern
National Bancorp of Virginia, Inc.
(NASDAQ: SONA) ("Southern National" or the "Company"), and its
wholly-owned subsidiary Sonabank (the "Bank"), today announced net
income of $7.7 million and
$33.7 million for the three and
twelve months ended December 31,
2018, respectively. That compares to a net loss of
($1.2) million and net income of
$2.4 million for the three and twelve
months ended December 31, 2017,
respectively. Earnings per share for the three and twelve
months ended December 31, 2018 was
$0.32 basic and diluted, and
$1.40 basic and $1.39 diluted, respectively, compared to
($0.05) basic and diluted, and
$0.13 basic and diluted per share for
the same periods in 2017, respectively. For comparative purposes,
the Company's 2017 earnings were impacted by $9.4 million of merger related expenses and a
$7.2 million deferred tax asset
write-down related to the Tax Cuts and Jobs Act of 2017.
The Board of Directors is pleased to announce and declare a
$0.01 increase in the dividend from
$0.08 to $0.09 per share payable on February 22, 2019 to shareholders of record on
February 11, 2019. The dividend
increase is a direct result of our very strong performance and an
appropriate return to our shareholders. This is Southern National's
twenty-ninth consecutive quarterly dividend.
The Company, just over a year and a half after its 2017
merger-of-equals with Eastern Virginia Bankshares, Inc. ("EVBS"),
has completed its integration and assimilation of the two banks
into one. Management is now focused on increasing loans and
deposits, increasing profitability and increasing franchise
value.
Highlights for the three and twelve months ended December 31, 2018 include:
- 2018 has been a great year for the Company with record income
of $33.7 million, a Return on Average
Assets ("ROA") of 1.25%, and a Return on Average Equity ("ROE") of
9.99%;
- Loans outstanding of $2.18
billion at December 31, 2018
are up $116.5 million, or 5.65%,
since December 31, 2017. Loan
sales have totaled $11.9 million and
loan participations sold are $4.0
million for the twelve months ended December 31, 2018;
- Loan growth was carefully managed to keep pace with volume and
cost of deposit funding.
- Asset quality remains high as demonstrated by the 0.28% ratio
of nonperforming assets, net of SBA guarantees, to total assets at
December 31, 2018;
- Deposit growth continues to be challenging due to a very
competitive market. Total deposits of $2.10 billion at December
31, 2018 have increased $232.4
million since December 31,
2017;
- The Bank is experiencing intense competition for rates on Money
Market accounts which may impact net interest margin in the
future;
- The Bank's net loan-to-deposit ratio improved to 103.29% down
from 110.07% a year ago.
- Tangible book value per share of $9.88 at December 31,
2018 has increased 11.51% since December 31, 2017;
- With a closing stock price of $13.22 on December 31,
2018, the Company's Price to Earning ("P/E") ratio is
9.51.
- Southern National was well capitalized at December 31, 2018 with an estimated tier 1
risk-based capital ratio of 12.06%;
- Net interest income remains strong at $22.8 million and $91.1
million for the quarter and twelve months ended December 31, 2018, respectively;
- Net interest margin for the twelve months ended December 31, 2018 was 3.72% compared to 3.87% for
the same period in 2017, which is a reflection of rising costs of
funds.
- Provision for loans losses totaled $0.5
million and $4.2 million for
the three and twelve months ended December
31, 2018, respectively;
- A loss on our investment in Southern Trust Mortgage, LLC
("STM") increased to ($894) thousand
for the twelve months ended December 31,
2018 compared to a loss of ($345)
thousand the year before due to rising interest rates and
operational changes within STM;
- Full time equivalent ("FTE") staffing has been reduced by 27.5
FTE in 2018, primarily in retail banking and operations; and
- Continued strong operating performance as evidenced by the
53.29% and 54.15% operating efficiency ratio during the fourth
quarter and year of 2018, respectively, compared to 52.85% and
54.20% for the same periods in 2017, respectively.
Net Interest Income
Net interest income was $22.8
million for the quarter ended December 31, 2018 compared to $23.0 million for the fourth quarter of 2017,
which is a direct result of the rising costs of funds.
Southern National's net interest margin was 3.66% and 3.72% for
the three and twelve months ended December
31, 2018, respectively, compared to 3.86% and 3.87% for the
three and twelve months ended December 31,
2017. The Company's cost of funds increased 53 basis points
to 1.41% since December 31, 2017. The
acquired loan discount accretion on loans acquired in the
acquisitions of EVBS, Greater Atlantic Bank, HarVest and Prince
Georges Federal Savings Bank contributed $1.4 million and $4.5
million to net interest income during the three and twelve
months ended December 31, 2018,
respectively.
Noninterest Income
During the fourth quarter of 2018, Southern National had
noninterest income of $1.9 million
compared to $2.3 million during the
fourth quarter of 2017. Income from bank-owned life insurance
has increased due to death benefit payouts in 2018 as well as the
income from the purchase of an additional $12.0 million in bank-owned life insurance during
2018. Loss on our investment in STM increased to ($894) thousand for the twelve months ended
December 31, 2018 compared to a loss
of ($345) thousand the year before
due to rising interest rates and operational changes within STM.
For the twelve months ended December 31,
2018, other noninterest income has benefited from
$2.5 million of recoveries of legacy
investment securities and loans charged off by EVBS before Southern
National merged with EVBS during the late second quarter of
2017.
Noninterest income was $10.2
million for the twelve months of 2018, compared to
$5.4 million for the twelve months of
2017. Generally, differences for the twelve months end
December 31, 2018 and 2017 are not
comparable due to the merger of EVBS into Southern National.
Noninterest Expense
Noninterest expense was $13.4
million during the fourth quarter of 2018, respectively,
compared to $13.8 million during the
same period in 2017. Employee compensation and benefits
expense totaled $6.8 million for the
fourth quarter of 2018, as compared to $6.5
million for the same period of 2017. Occupancy and equipment
expenses remain flat.
The Company recognized a $300
thousand of write-downs on other real estate owned ("OREO")
offset by $1 thousand gain on the
sale of OREO during the fourth quarter of 2018, bringing
write-downs to $650 thousand offset
by gain on sale of $290 thousand for
a net loss of $360 thousand for
the year. No merger expenses were recorded for 2018. Other
noninterest expenses have declined due to the consolidation process
and overhead control.
Noninterest expense was $53.8
million for the twelve months of 2018. Noninterest
expenses post-merger are in-line with Management's pre-merger
expectations. Noninterest expense for the twelve months of
2017 were $49.1 million and included
$9.4 million of merger expenses and
are generally not comparable to 2018 due to the merger of EVBS into
Southern National.
Income Tax Expense
Income tax expense for the fourth quarter of 2018 was affected
by the reassessment of $5 million net
operating loss carryforward related to an EVBS premerger
acquisition from 2014. Income tax expense for the fourth
quarter of 2017 was affected by a $7.2
million write-down of the Company's deferred tax assets
related to the Tax Cuts and Jobs Act of 2017.
Securities Portfolio
Investment securities totaled $235.8
million at December 31, 2018
and represent 8.72% of total assets. Southern National
utilizes its securities portfolio to augment income and manage its
interest rate risk while serving as a source of liquidity. In 2017,
at the time of the merger, the securities portfolio was
restructured to meet the future needs of the Company. As a
result, no securities have been purchased or sold during 2018.
Loan Portfolio
Loan demand remains elevated in the Company's markets.
Loan growth in 2018 was $116.5
million, or 5.65%, bringing loans receivable, net of
deferred fees to $2.18 billion at
December 31, 2018.
Additionally, loan sales have totaled $11.9
million and loan participations sold are $4.0 million for the twelve months ended
December 31, 2018.
The composition of our loan portfolio consisted of the following
at December 31, 2018 and 2017 (in
thousands):
|
December 31,
2018
|
|
December 31,
2017
|
Loans secured
by real estate:
|
|
|
|
Commercial real estate - owner occupied
|
$
399,993
|
|
$
401,847
|
Commercial real estate - non-owner occupied
|
484,306
|
|
440,700
|
Secured by farmland
|
20,966
|
|
23,038
|
Construction and land loans
|
210,084
|
|
197,972
|
Residential 1-4 family (1)
|
565,083
|
|
483,006
|
Multi-family residential
|
82,516
|
|
70,892
|
Home equity lines of credit (1)
|
128,225
|
|
152,829
|
Total real estate
loans
|
1,891,173
|
|
1,770,284
|
|
|
|
|
Commercial
loans
|
255,441
|
|
253,258
|
Consumer
loans
|
32,347
|
|
39,374
|
Gross
loans
|
2,178,961
|
|
2,062,916
|
|
|
|
|
Less deferred
fees on loans
|
(137)
|
|
(588)
|
Loans
receivable, net of deferred fees
|
$
2,178,824
|
|
$
2,062,328
|
|
|
|
|
(1) Includes
covered loans totaling $18.3 million and $23.3 million as of
December 31, 2018 and
|
|
|
December 31,
2017, respectively. Covered loans were acquired in the acquistion
of Greater Atlantic Bank
|
and are covered
under a FDIC loss-share agreement. The agreement expires in
December 2019.
|
|
Loan Loss Provision/Asset Quality
Asset quality remained high during the twelve months of
2018. For the twelve months ended December 31, 2018, the provision for loan losses
was $4.2 million compared to
$8.6 million for the same period last
year. Net charge offs (recoveries) for the three and twelve months
ended December 31, 2018 were
($332) thousand and $1.3 million, respectively, compared to
$5.2 million and $6.3 million for the same periods in 2017,
respectively. Southern National's allowance for loan losses
as a percentage of total non-covered loans at December 31, 2018 was 0.57%, compared to 0.46% at
the end of 2017. The allowance for loan losses as a
percentage of non-covered non-acquired loans was 0.85% and 0.77% at
December 31, 2018 and 2017,
respectively.
Non-covered nonaccrual loans were $2.5
million (excluding $3.4
million of loans fully covered by SBA guarantees) at
December 31, 2018 compared to
$12.3 million (excluding $4.7 million of loans fully covered by SBA
guarantees) as of December 31,
2017. During 2018, a $9.9
million loan that had been on nonaccrual status since the
third quarter of 2017 was fully paid off, which resulted in
$732 thousand of recovered interest
being recognized. The ratio of non-covered nonperforming assets
(excluding the SBA guaranteed loans) to total assets decreased from
0.77% at the end of 2017 to 0.28% at December 31, 2018.
OREO at December 31, 2018 was
$5.1 million compared to $7.6 million at December
31, 2017. The decline has been a result of a
combination of OREO sales and write-downs.
Deposits
The competition for deposits in the Company's markets continues
to climb, as so do the rates being paid on deposits. Total deposits
were $2.10 billion at December 31, 2018 compared to $1.87 billion at December
31, 2017, an increase of $232.4
million, or 12.46%. During the twelve months ended
December 31, 2018, demand deposits
increased by $0.9 million, or 0.27%,
NOW accounts increased by $15.7
million, or 4.77%, while money market accounts increased
$0.4 million or 0.11%. Savings
accounts decreased to $151.1 million
or (6.73%) at December 31, 2018 from
a balance of $161.9 million at
December 31, 2017, and time deposits
increased $226.4 million, or 32.38%,
from $699.0 million at December 31, 2017, to $925.4 million at December
31, 2018.
Stockholders' Equity
Total stockholders' equity increased from $322.8 million at December
31, 2017 to $348.3 million at
December 31, 2018. Our estimated tier
1 risk-based capital ratios were 12.06% and 13.83% for Southern
National and Sonabank, respectively, as of December 31, 2018.
About Southern National Bancorp of Virginia, Inc.
As of December 31, 2018, Southern
National had $2.70 billion in total
assets, $2.18 billion in total loans
and $2.10 billion in total deposits.
Sonabank provides a range of financial services to individuals and
small and medium sized businesses. At December 31, 2018, Sonabank had forty-five
full-service branches. Thirty-eight full-service retail branches
are in Virginia, located in the
counties of Chesterfield (2),
Essex (2), Fairfax (Reston, McLean and Fairfax), Gloucester (2), Hanover (3), King
William, Lancaster,
Middlesex (3), New Kent, Northumberland (3), Southampton, Surry, Sussex, and in Charlottesville, Clifton Forge, Colonial Heights, Front Royal, Hampton, Haymarket, Leesburg, Middleburg, New
Market, Newport News,
Richmond, South Riding, Warrenton, and Williamsburg, and seven full-service retail
branches in Maryland, in
Rockville, Shady Grove,
Bethesda, Upper Marlboro, Brandywine, Owings and Huntingtown.
Non-GAAP Measures
Statements included in this press release include non-GAAP
financial measures and should be read along with the accompanying
tables. Southern National uses non-GAAP financial measures to
analyze its performance.
Management believes that non-GAAP financial measures provide
additional useful information that allows readers to evaluate the
ongoing performance of Southern National and provide meaningful
comparison to its peers. Non-GAAP financial measures should not be
considered as an alternative to any measure of performance or
financial condition as promulgated under GAAP, and investors should
consider Southern National's performance and financial condition as
reported under GAAP and all other relevant information when
assessing the performance or financial condition of Southern
National.
Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
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. 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 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, and Registration Statements on Form S-4) filed by
Southern National. You should consider such factors and not place
undue reliance on such forward-looking statements. No obligation is
undertaken by Southern National to update such forward-looking
statements to reflect events or circumstances occurring after the
issuance of this press release.
Contacts:
|
Addresses:
|
Joe A. Shearin,
CEO
|
Southern National
Bancorp of Virginia, Inc.
|
Phone:
804-528-4752
|
6830 Old Dominion
Drive
|
|
McLean, VA
22101
|
Georgia S. Derrico,
Executive Chairman
|
|
Phone: 202-464-1130
ext. 2405
|
Sonabank
|
|
10900 Nuckols Road,
Suite 325
|
R. Roderick Porter,
Executive Vice Chairman
|
Glen Allen, VA
23060
|
Phone: 202-464-1130
ext. 2406
|
|
|
Southern National
Bancorp of Virginia, Inc., NASDAQ Symbol SONA
|
Website:
www.sonabank.com
|
Southern National
Bancorp of Virginia, Inc.
|
McLean,
Virginia
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2018
|
|
2017
(1)
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
28,611
|
|
$
25,463
|
|
Investment
securities-available for sale
|
|
143,377
|
|
160,673
|
|
Investment
securities-held to maturity
|
|
92,462
|
|
98,912
|
|
Stock in Federal
Reserve Bank and Federal Home Loan Bank
|
|
19,522
|
|
26,775
|
|
Loans receivable, net
of deferred fees
|
|
2,178,824
|
|
2,062,328
|
|
Allowance for loan
losses
|
|
(12,283)
|
|
(9,397)
|
|
Net loans
|
|
2,166,541
|
|
2,052,931
|
|
Intangible
assets
|
|
110,563
|
|
110,660
|
|
Bank premises and
equipment, net
|
|
32,352
|
|
35,788
|
|
Bank-owned life
insurance
|
|
62,495
|
|
50,790
|
|
Deferred tax assets,
net
|
|
14,104
|
|
16,903
|
|
Other
assets
|
|
31,267
|
|
35,357
|
|
Total assets
|
|
$
2,701,294
|
|
$
2,614,252
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Demand
deposits
|
|
$
320,043
|
|
$
319,189
|
|
NOW
accounts
|
|
345,597
|
|
329,878
|
|
Money market
accounts
|
|
355,469
|
|
355,084
|
|
Savings
accounts
|
|
151,050
|
|
161,947
|
|
Time
deposits
|
|
925,441
|
|
699,058
|
|
Total
deposits
|
|
2,097,600
|
|
1,865,156
|
|
Federal Home Loan
Bank advances-short term
|
|
163,340
|
|
335,615
|
|
Subordinated
notes
|
|
56,673
|
|
56,662
|
|
Other
liabilities
|
|
35,392
|
|
34,047
|
|
Total
liabilities
|
|
2,353,005
|
|
2,291,480
|
|
Stockholders'
equity
|
|
348,290
|
|
322,772
|
|
Total liabilities and
stockholders' equity
|
|
$
2,701,294
|
|
$
2,614,252
|
|
|
|
|
|
|
|
|
(1) Derived from
audited financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Interest and dividend
income
|
|
$
31,150
|
|
$
27,965
|
|
$
118,907
|
|
$
83,570
|
Interest
expense
|
|
8,345
|
|
4,995
|
|
27,840
|
|
15,653
|
|
Net interest
income
|
|
22,804
|
|
22,970
|
|
91,066
|
|
67,917
|
Provision for loan
losses
|
|
500
|
|
1,775
|
|
4,200
|
|
8,625
|
|
Net interest income
after provision for loan losses
|
|
22,304
|
|
21,195
|
|
86,866
|
|
59,292
|
Account maintenance
and deposit service fees
|
|
1,762
|
|
1,466
|
|
5,960
|
|
3,564
|
Income from
bank-owned life insurance
|
|
520
|
|
298
|
|
1,983
|
|
929
|
Equity (loss) from
mortgage affiliate
|
|
(696)
|
|
106
|
|
(894)
|
|
(345)
|
Gain on sales of
investment securities
|
|
-
|
|
-
|
|
-
|
|
255
|
Other
|
|
345
|
|
462
|
|
3,152
|
|
1,026
|
|
Noninterest
income
|
|
1,929
|
|
2,332
|
|
10,199
|
|
5,429
|
Employee compensation
and benefits
|
|
6,847
|
|
6,535
|
|
27,706
|
|
20,285
|
Occupancy and
equipment expenses
|
|
2,328
|
|
2,298
|
|
9,424
|
|
7,037
|
Amortization of core
deposit intangible
|
|
361
|
|
362
|
|
1,445
|
|
845
|
FDIC
assessments
|
|
251
|
|
411
|
|
1,065
|
|
802
|
Amortization of FDIC
indemnification asset
|
|
237
|
|
201
|
|
764
|
|
741
|
Net loss on other
real estate owned
|
|
299
|
|
307
|
|
360
|
|
520
|
Merger
expenses
|
|
-
|
|
332
|
|
-
|
|
9,426
|
Other
expenses
|
|
3,086
|
|
3,390
|
|
12,996
|
|
9,493
|
|
Noninterest
expense
|
|
13,409
|
|
13,836
|
|
53,760
|
|
49,149
|
|
Income before income
taxes
|
|
10,824
|
|
9,691
|
|
43,305
|
|
15,572
|
Income tax
expense
|
|
3,120
|
|
10,852
|
|
9,614
|
|
13,147
|
|
Net
income (loss)
|
|
$
7,704
|
|
$
(1,161)
|
|
$
33,691
|
|
$
2,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Highlights
|
(Unaudited)
|
(Dollars in
thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Per Share
Data:
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share - Basic
|
|
$
0.32
|
|
$
(0.05)
|
|
$
1.40
|
|
$
0.13
|
Earnings (loss) per
share - Diluted
|
|
$
0.32
|
|
$
(0.05)
|
|
$
1.39
|
|
$
0.13
|
Book value per
share
|
|
$
14.48
|
|
$
13.48
|
|
$
14.48
|
|
$
13.48
|
Tangible book value
per share (1)
|
|
$
9.88
|
|
$
8.86
|
|
$
9.88
|
|
$
8.86
|
Weighted average
shares outstanding - Basic
|
|
24,050,541
|
|
23,923,410
|
|
24,025,155
|
|
18,390,810
|
Weighted average
shares outstanding - Diluted
|
|
24,265,885
|
|
24,228,054
|
|
24,272,617
|
|
18,685,427
|
Shares outstanding at
end of period
|
|
24,052,253
|
|
23,936,453
|
|
24,052,253
|
|
23,936,453
|
|
|
|
|
|
|
|
|
|
|
Selected
Performance Ratios (2):
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.12%
|
|
-0.18%
|
|
1.25%
|
|
0.13%
|
Return on average
equity
|
|
8.84%
|
|
-1.40%
|
|
9.99%
|
|
1.02%
|
Return on average
tangible equity (3)
|
|
13.01%
|
|
-1.57%
|
|
14.87%
|
|
1.39%
|
Yield on earning
assets
|
|
5.00%
|
|
4.69%
|
|
4.86%
|
|
4.76%
|
Cost of
funds
|
|
1.41%
|
|
0.88%
|
|
1.19%
|
|
0.94%
|
Net interest
margin
|
|
3.66%
|
|
3.86%
|
|
3.72%
|
|
3.87%
|
Net loans to
deposits
|
|
103.29%
|
|
110.07%
|
|
103.29%
|
|
110.07%
|
Operating efficiency
ratio (4)
|
|
53.29%
|
|
52.85%
|
|
54.15%
|
|
54.20%
|
Net charge-offs
(recoveries) to average loans
|
|
-0.02%
|
|
0.08%
|
|
0.06%
|
|
0.51%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
to total assets
|
|
12.89%
|
|
12.35%
|
|
|
|
|
Tier 1 risk-based
capital ratio (estimated for December 31, 2018)
|
12.06%
|
|
10.70%
|
|
|
|
|
Intangible
assets:
|
|
|
|
|
|
|
|
|
Goodwill
|
|
$
101,954
|
|
$
100,606
|
|
|
|
|
Core deposit
intangible, net
|
|
8,609
|
|
10,054
|
|
|
|
|
Total
|
|
$
110,563
|
|
$
110,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and other real
estate owned (5):
|
|
|
|
|
|
|
|
|
Nonaccrual loans
(6)
|
|
$
5,916
|
|
$
16,963
|
|
|
|
|
Loans past due 90
days and accruing interest
|
|
-
|
|
-
|
|
|
|
|
Other real estate
owned
|
|
5,077
|
|
7,577
|
|
|
|
|
Total nonperforming
assets
|
|
$
10,993
|
|
$
24,540
|
|
|
|
|
Allowance for loan
losses to total non-covered loans
|
|
0.57%
|
|
0.46%
|
|
|
|
|
Nonperforming assets
excluding SBA guaranteed loans to
|
|
|
|
|
|
|
|
|
total assets
|
|
0.28%
|
|
0.77%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measure
defined as stockholders' equity less goodwill and other
intangibles divided by common shares outstanding.
|
(2) Selected
performance ratios are annualized except the operating efficiency
ratio and net charge-offs to average loans.
|
(3) Non-GAAP measure
defined as average stockholders' equity less average goodwill and
other intangibles.
|
(4) Non-GAAP measure
excludes gains/losses and write-downs on OREO, gains/losses on sale
of loans, gains/losses on sale of
securities,
|
merger expenses, and
recoveries related to acquired charged-off loans and securities
that are recognized in other noninterest income.
|
(5) Applies only to
non-covered loans and other real estate owned.
|
(6) Nonaccrual loans
include SBA guaranteed amounts totaling $3.4 million and $4.7
million at December 31, 2018 and
|
December
31, 2017, respectively.
|
|
Reconciliation of
Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
(Dollars in
thousands)
|
December
31,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income
excluding merger expenses and
|
|
|
|
|
|
|
|
|
|
DTA revaluation
adjustment (Non-GAAP)
|
|
|
|
|
|
|
|
|
Net (loss) income
(GAAP)
|
|
$
7,704
|
|
$
(1,161)
|
|
$
33,691
|
|
$
2,425
|
Merger
expenses
|
|
-
|
|
332
|
|
-
|
|
9,426
|
Income tax effect of
adjustment for merger expenses
|
|
-
|
|
(79)
|
|
-
|
|
(2,680)
|
Additional estimated
income tax expense related to the DTA revaluation
|
-
|
|
7,210
|
|
-
|
|
7,210
|
Net income excluding
merger expenses and DTA revaluation adjustment
(Non-GAAP)
|
$
7,704
|
|
$
6,302
|
|
$
33,691
|
|
$
16,381
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets excluding merger expenses and
|
|
|
|
|
|
|
|
|
DTA revaluation
adjustment (Non-GAAP)
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.12%
|
|
-0.18%
|
|
1.25%
|
|
0.13%
|
Effect to adjust for
merger expenses and additional estimated
|
|
|
|
|
|
|
|
|
income tax
expense related to the DTA revaluation
|
|
0.00%
|
|
1.14%
|
|
0.00%
|
|
0.72%
|
Return on average
assets excluding merger expenses and
|
|
|
|
|
|
|
|
|
|
DTA revaluation
adjustment (Non-GAAP)
|
|
1.12%
|
|
0.96%
|
|
1.25%
|
|
0.85%
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity excluding merger expenses and
|
|
|
|
|
|
|
|
|
DTA revaluation
adjustment (Non-GAAP)
|
|
|
|
|
|
|
|
|
Return on average
equity
|
|
8.84%
|
|
-1.40%
|
|
9.99%
|
|
1.02%
|
Effect to adjust for
merger expenses and additional estimated
|
|
|
|
|
|
|
|
|
income tax
expense related to the DTA revaluation
|
|
0.00%
|
|
8.97%
|
|
0.00%
|
|
5.86%
|
Return on average
equity excluding merger expenses and
|
|
|
|
|
|
|
|
|
|
DTA revaluation
adjustment (Non-GAAP)
|
|
8.84%
|
|
7.57%
|
|
9.99%
|
|
6.88%
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/for-the-first-full-year-following-its-merger-of-equals-southern-national-bancorp-of-virginia-inc-announces-record-earnings-of-33-7-million-for-2018--compared-to-2-4-million-for-2017--300783327.html
SOURCE Southern National Bancorp of Virginia, Inc.