Southern National Bancorp of Virginia, Inc. announces earnings of $9.6 million for the quarter ended September 30, 2020, compared to $8.9 million for the quarter ended September 30, 2019
Southern National Bancorp of Virginia (NASDAQ: SONA) reported net income of $9.6 million for Q3 2020, up from $8.9 million in Q3 2019. The earnings per share rose to $0.40 basic. However, earnings for the first nine months of 2020 decreased to $14.3 million from $24.2 million year-over-year. Total revenue was $29.3 million, marking a 22% increase from last year. The dividend declared is $0.10 per share, indicating the 36th consecutive quarterly dividend. The company achieved a significant reduction in deferred loans, illustrating improved credit quality.
- Net income for Q3 2020 is $9.6 million, up 7.9% from $8.9 million YoY.
- Total revenue increased by 22% YoY to $29.3 million.
- Earnings per share increased to $0.40 basic, up from $0.37 YoY.
- Achieved a substantial reduction in deferred loans from $707.8 million to approximately $115 million.
- Declared a dividend of $0.10 per share for shareholders.
- Earnings for the first nine months decreased to $14.3 million from $24.2 million YoY.
- Net interest margin declined to 3.18% from 3.37% YoY.
- Noninterest expense increased to $15.3 million from $12.6 million YoY.
MCLEAN, Va., Oct. 26, 2020 /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
Earnings for the nine months ended September 30, 2020 were
The Board of Directors also announces and declares a dividend of
Commenting on the quarter, President and CEO Dennis J. Zember, Jr. said, "We finished an outstanding quarter with record net income and a substantially improved picture on deferrals. Compared to last year, we are seeing higher levels of pre-tax, pre-provision earnings thanks to modestly higher net interest income, solid results in fee income and an impressive efficiency ratio. Our credit team has worked diligently with each of our deferred loan customers, moving our current level of deferred loans down dramatically. As we work to finish out the year, we are going to stay focused on credit quality and credit trends and build an impressive story for loan and deposit growth in 2021."
Highlights for the three months ended September 30, 2020 include:
- Loans on deferral declined significantly. Management estimates that deferrals at the end of October, 2020 (end of our initial round of six month deferrals) to be approximately
$115 million , or4.2% of loans, compared to$707.8 million at the end of the second quarter and$429.7 million at the end of the third quarter. - Total revenue of
$29.3 million , up22% against same quarter in 2019. - Total deposits increased
$37.7 million despite a$300.2 million decline in CD over the last 12 months. - Demand deposits (NIB, NOW, MMDA) increased to
66.6% of total deposits compared to53.7% at same time in 2019. - Cost of deposits declined to
0.80% at the end of the third quarter of 2020 compared to1.47% - The Company booked its first Panacea customers, a treasury deposit account.
- Our operating efficiency ratio of
52.79% for the third quarter of 2020 compared to52.76% in the same quarter of 2019. - Another sizable contribution from our mortgage investment of
$3.8 million for the quarter. - Pretax preprovision (PTPP) earnings of
$14.0 million or1.78% of average assets for the quarter compared to$11.4 or1.65% in the same quarter in 2019. - Total assets increased to approximately
$3.2 billion at September 30, 2020. - Successful completion of a
$60 million subordinated debt offering during the quarter. - Tangible book value per share of
$11.53 at September 30, 2020 has increased6.68% since a year ago despite significant build in loan loss reserves and steady dividends.
Net Interest Income
Net interest income increased to
September 30, 2019. The Company's reported net interest margin for the current quarter declined to
Loan yields in the current quarter were
Commenting on the trends around net interest margin, Mr. Zember stated "We recognize that our deposit costs are higher than our peers and are using this in the short-term to continue shifting our deposit mix away from CDs. We expect that early in 2021, we will have moved time deposits to below
Noninterest Income
During the three months ended September 30, 2020, Southern National had non-interest income of
Noninterest Expense
Noninterest expense was
Loan Portfolio
Loans outstanding grew to
The Company ended the third quarter of 2020 with a concentration in hotels totaling
Credit Loss Provision and Asset Quality
The Allowance for Loan Losses (incurred loss model) increased to
During the third quarter, and through October 23, 2020, the Company saw a substantial amount of deferred loans go back to traditional loan terms. As of October 23, 2020, loans on any form of deferral totaled
(000's) | Entire Portfolio | |||||||
2Q 2020 | % of loans | 3Q 2020 | % of loans | Est 10/2020 | % of loans | |||
Balances not modified | ||||||||
Modified | 707,841 | 429,671 | 115,113 | |||||
Total | ||||||||
Hotels | ||||||||
2Q 2020 | % of loans | 3Q 2020 | % of loans | Est 10/2020 | % of loans | |||
Balances not modified | ||||||||
Modified | 219,673 | 133,933 | 41,492 | |||||
Total | ||||||||
Restaurants | ||||||||
2Q 2020 | % of loans | 3Q 2020 | % of loans | Est 10/2020 | % of loans | |||
Balances not modified | ||||||||
Modified | 68,727 | 60,824 | 1,390 | |||||
Total |
Nonperforming assets, excluding portions guaranteed by the SBA, were
Deposits
Total deposits increased to
Stockholders' Equity
Tangible common book value at the end of the third quarter of 2020 was
About Southern National Bancorp of Virginia, Inc.
As of September 30, 2020, Southern National had
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.
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Condensed Consolidated Balance Sheets (unaudited) | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Assets | ||||||||||||
Cash and cash equivalents | $ 149,272 | $ 82,586 | $ 55,865 | $ 31,928 | $ 48,572 | $ 149,272 | $ 48,572 | |||||
Investment securities-available for sale | 157,896 | 160,979 | 168,520 | 164,820 | 163,344 | 157,896 | 163,344 | |||||
Investment securities-held to maturity | 49,323 | 53,958 | 59,234 | 72,448 | 78,790 | 49,323 | 78,790 | |||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 16,927 | 16,927 | 21,396 | 17,832 | 14,602 | 16,927 | 14,602 | |||||
Loans receivable, net of deferred fees | 2,523,709 | 2,511,504 | 2,212,538 | 2,186,047 | 2,141,385 | 2,523,709 | 2,141,385 | |||||
Allowance for loan losses | (25,779) | (23,627) | (12,722) | (10,261) | (11,201) | (25,779) | (11,201) | |||||
Net loans | 2,497,930 | 2,487,877 | 2,199,816 | 2,175,786 | 2,130,184 | 2,497,930 | 2,130,184 | |||||
Loans held for sale | - | - | - | - | - | - | - | |||||
Intangible assets | 108,122 | 108,463 | 108,804 | 109,145 | 109,486 | 108,122 | 109,486 | |||||
Operating lease right-of-use assets | 7,033 | 7,111 | 7,664 | 8,013 | 8,374 | 7,033 | 8,374 | |||||
Bank premises and equipment, net | 30,679 | 31,087 | 31,079 | 31,184 | 31,265 | 30,679 | 31,265 | |||||
Bank-owned life insurance | 65,015 | 64,622 | 64,236 | 63,850 | 63,452 | 65,015 | 63,452 | |||||
Deferred tax assets, net | 14,477 | 11,087 | 11,154 | 11,788 | 14,319 | 14,477 | 14,319 | |||||
Other assets | 57,899 | 47,474 | 34,795 | 35,376 | 36,527 | 57,899 | 36,527 | |||||
Total assets | $ 3,154,573 | $ 3,072,171 | $ 2,762,563 | $ 2,722,170 | $ 2,698,915 | $ 3,154,573 | $ 2,698,915 | |||||
Liabilities and stockholders' equity | ||||||||||||
Demand deposits | $ 467,581 | $ 447,605 | $ 338,095 | $ 339,153 | $ 343,686 | $ 467,581 | $ 343,686 | |||||
NOW accounts | 472,553 | 424,096 | 380,977 | 391,172 | 368,354 | 472,553 | 368,354 | |||||
Money market accounts | 534,899 | 488,229 | 477,660 | 466,867 | 458,737 | 534,899 | 458,737 | |||||
Savings accounts | 179,756 | 171,681 | 151,406 | 144,486 | 146,119 | 179,756 | 146,119 | |||||
Time deposits | 561,685 | 619,918 | 727,216 | 783,040 | 861,842 | 561,685 | 861,842 | |||||
Total deposits | 2,216,474 | 2,151,529 | 2,075,354 | 2,124,718 | 2,178,738 | 2,216,474 | 2,178,738 | |||||
Federal Home Loan Bank advances | 100,000 | 100,000 | 205,140 | 121,640 | 45,640 | 100,000 | 45,640 | |||||
PPPLF Advances | 283,906 | 333,574 | - | - | - | 283,906 | - | |||||
Subordinated notes | 115,378 | 56,689 | 56,686 | 56,683 | 56,681 | 115,378 | 56,681 | |||||
Operating lease liabilities | 7,800 | 7,896 | 8,509 | 8,469 | 8,830 | 7,800 | 8,830 | |||||
Other liabilities | 42,032 | 40,814 | 38,052 | 33,419 | 38,396 | 42,032 | 38,396 | |||||
Total liabilities | 2,765,590 | 2,690,502 | 2,383,741 | 2,344,929 | 2,328,285 | 2,765,590 | 2,328,285 | |||||
Stockholders' equity | 388,983 | 381,669 | 378,822 | 377,241 | 370,630 | 388,983 | 370,630 | |||||
Total liabilities and stockholders' equity | $ 3,154,573 | $ 3,072,171 | $ 2,762,563 | $ 2,722,170 | $ 2,698,915 | $ 3,154,573 | $ 2,698,915 | |||||
Tangible common equity | $ 280,861 | $ 273,206 | $ 270,018 | $ 268,096 | $ 261,144 | $ 280,861 | $ 261,144 | |||||
Tangible common equity to tangible assets | ||||||||||||
Tangible book value | 11.53 | 11.21 | 11.11 | 11.09 | 10.80 | 11.53 | 10.80 |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Condensed Consolidated Statement of Operations (unaudited) | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Interest and dividend income | $ 28,707 | $ 28,672 | $ 28,481 | $ 29,354 | $ 30,474 | $ 85,860 | $ 91,170 | |||||
Interest expense | 5,709 | 6,199 | 7,966 | 8,685 | 9,459 | 19,874 | 28,239 | |||||
Net interest income | 22,998 | 22,473 | 20,515 | 20,669 | 21,015 | 65,986 | 62,931 | |||||
Provision for credit losses | 2,000 | 10,899 | 3,450 | - | 150 | 16,349 | 350 | |||||
Net interest income after provision for loan losses | 20,998 | 11,574 | 17,065 | 20,669 | 20,865 | 49,637 | 62,581 | |||||
Account maintenance and deposit service fees | 1,633 | 1,489 | 1,698 | 1,847 | 1,837 | 4,820 | 5,312 | |||||
Income from bank-owned life insurance | 394 | 385 | 386 | 399 | 392 | 1,165 | 1,300 | |||||
Equity gain from mortgage affiliate | 3,826 | 4,161 | 231 | 16 | 599 | 8,218 | 1,175 | |||||
Recoveries related to acquired charged-off | ||||||||||||
loans and investment securities | 288 | 2,235 | 184 | 477 | 145 | 2,707 | 1,060 | |||||
Other | 130 | 123 | 321 | 620 | 1 | 574 | 380 | |||||
Noninterest income | 6,271 | 8,393 | 2,820 | 3,359 | 2,974 | 17,484 | 9,227 | |||||
Employee compensation and benefits | 7,817 | 7,338 | 12,309 | 6,738 | 6,567 | 27,464 | 19,523 | |||||
Occupancy and equipment expenses | 2,151 | 2,044 | 2,558 | 2,389 | 1,482 | 6,753 | 6,534 | |||||
Amortization of core deposit intangible | 341 | 341 | 341 | 341 | 352 | 1,023 | 1,077 | |||||
Virginia franchise tax expense | 615 | 659 | 570 | 562 | 563 | 1,844 | 1,689 | |||||
Data processing expense | 701 | 956 | 707 | 677 | 622 | 2,364 | 1,704 | |||||
Telecommunication and communication expense | 382 | 369 | 368 | 357 | 477 | 1,119 | 1,258 | |||||
Net (gain) loss on other real estate owned | (16) | - | 71 | - | - | 55 | (38) | |||||
Professional fees | 1,494 | 873 | 1,193 | 1,036 | 673 | 3,560 | 2,576 | |||||
Other expenses | 1,779 | 1,490 | 1,735 | 1,696 | 1,878 | 5,004 | 8,473 | |||||
Noninterest expense | 15,264 | 14,070 | 19,852 | 13,796 | 12,614 | 49,186 | 42,796 | |||||
Income before income taxes | 12,005 | 5,897 | 33 | 10,232 | 11,225 | 17,935 | 29,012 | |||||
Income tax expense | 2,417 | 1,188 | 6 | 1,268 | 2,361 | 3,611 | 4,809 | |||||
Net income | $ 9,588 | $ 4,709 | $ 27 | $ 8,964 | $ 8,864 | $ 14,324 | $ 24,203 | |||||
Non-GAAP adjustments to Net Income | ||||||||||||
Management Restructure | $ - | $ - | $ 4,899 | $ - | $ - | $ 4,899 | $ - | |||||
Branch Closures | - | - | 479 | - | - | 479 | - | |||||
Other loss and related legal expenses | - | - | - | - | - | - | 3,702 | |||||
Income tax effect | - | - | (1,076) | - | - | (1,076) | (777) | |||||
Total Net Income adjusted for nonrecurring expenses | $ 9,588 | $ 4,709 | $ 4,329 | $ 8,964 | $ 8,864 | $ 18,626 | $ 27,128 | |||||
Pretax preprovision earnings | $ 14,005 | $ 16,796 | $ 8,861 | $ 10,232 | $ 11,375 | $ 38,586 | $ 32,287 | |||||
Pretax preprovision earnings to average assets |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Per Share Data: | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Earnings per share - Basic | $ 0.40 | $ 0.19 | $ 0.00 | $ 0.37 | $ 0.37 | $ 0.59 | $ 1.01 | |||||
Earnings per share - Diluted | $ 0.39 | $ 0.19 | $ 0.00 | $ 0.37 | $ 0.36 | $ 0.59 | $ 0.99 | |||||
Book value per share | $ 15.96 | $ 15.67 | $ 15.59 | $ 15.60 | $ 15.33 | $ 15.96 | $ 15.33 | |||||
Tangible book value per share | $ 11.53 | $ 11.21 | $ 11.11 | $ 11.09 | $ 10.80 | $ 11.53 | $ 10.80 | |||||
Weighted average shares outstanding - Basic | 24,270,455 | 24,246,355 | 24,168,359 | 24,092,534 | 24,071,925 | 24,228,543 | 24,035,716 | |||||
Weighted average shares outstanding - Diluted | 24,375,383 | 24,352,708 | 34,388,085 | 24,411,147 | 24,374,163 | 24,349,995 | 24,334,789 | |||||
Shares outstanding at end of period | 24,368,853 | 24,361,603 | 24,297,703 | 24,181,534 | 24,171,776 | 24,368,853 | 24,171,776 | |||||
Selected Performance Ratios: | ||||||||||||
Return on average assets | ||||||||||||
Return on average equity | ||||||||||||
Return on average tangible equity | ||||||||||||
Yield on earning assets | ||||||||||||
Cost of funds on interest bearing liabilities | ||||||||||||
Net interest margin | ||||||||||||
Net loans to deposits | ||||||||||||
Operating efficiency ratio | ||||||||||||
Overhead ratio | ||||||||||||
Net charge-offs to average loans | - | |||||||||||
Reconciliation of Non-GAAP items: | ||||||||||||
Return on average assets | ||||||||||||
Effect of adjustment for the nonrecurring expenses | ||||||||||||
Return on average assets excluding the nonrecurring expenses (Non-GAAP) | ||||||||||||
Return on average equity | ||||||||||||
Effect of adjustment for the nonrecurring expenses | ||||||||||||
Return on average equity excluding the nonrecurring expenses (Non-GAAP) | ||||||||||||
Operating efficiency ratio | ||||||||||||
Effect of adjustment for the nonrecurring expenses | - | - | - | |||||||||
Operating efficiency ratio excluding the nonrecurring expenses (Non-GAAP) | ||||||||||||
Tangible book value | $ 11.53 | $ 11.21 | $ 11.11 | $ 11.09 | $ 10.80 | $ 11.53 | $ 10.80 | |||||
Effect of adjustment for the nonrecurring expenses | - | - | 0.18 | - | - | 0.18 | 0.12 | |||||
Tangible book value excluding the nonrecurring expenses (Non-GAAP) | $ 11.53 | $ 11.21 | $ 11.29 | $ 11.09 | $ 10.80 | $ 11.71 | $ 10.92 |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||
Asset Quality Information: | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||
Loans secured by real estate: | ||||||||||
Commercial real estate - owner occupied | $ 416,717 | $ 412,916 | $ 409,739 | $ 414,479 | $ 399,105 | $ 416,717 | $ 399,105 | |||
Commercial real estate - non-owner occupied | 605,053 | 591,229 | 599,987 | 559,195 | 542,909 | 605,053 | 542,909 | |||
Secured by farmland | 16,608 | 16,845 | 16,608 | 17,622 | 17,504 | 16,608 | 17,504 | |||
Construction and loan loans | 120,066 | 122,086 | 115,144 | 150,750 | 162,458 | 120,066 | 162,458 | |||
Residential 1-4 family | 581,237 | 612,247 | 624,119 | 604,777 | 574,935 | 581,237 | 574,935 | |||
Multi-family residential | 107,672 | 100,685 | 90,652 | 82,055 | 82,626 | 107,672 | 82,626 | |||
Home equity lines of credit | 97,727 | 101,218 | 106,820 | 109,006 | 112,801 | 97,727 | 112,801 | |||
Total real estate loans | 1,945,080 | 1,957,226 | 1,963,069 | 1,937,884 | 1,892,338 | 1,945,080 | 1,892,338 | |||
Commercial loans | 216,711 | 204,160 | 223,433 | 221,447 | 220,707 | 216,711 | 220,707 | |||
SBA Paycheck Protection Program loans | 348,022 | 335,612 | - | - | - | 348,022 | - | |||
Consumer loans | 23,078 | 24,733 | 25,708 | 26,304 | 28,075 | 23,078 | 28,075 | |||
Gross loans | 2,532,891 | 2,521,731 | 2,212,210 | 2,185,635 | 2,141,120 | 2,532,891 | 2,141,120 | |||
Plus (less) deferred costs (fees) on loans | (9,182) | (10,227) | 328 | 412 | 265 | (9,182) | 265 | |||
Loan receivable, net of deferred costs (fees) | $ 2,523,709 | $ 2,511,504 | $ 2,212,538 | $ 2,186,047 | $ 2,141,385 | $ 2,523,709 | $ 2,141,385 | |||
Allowance for Loan Losses (Incurred Loss Model): | ||||||||||
Balance at beginning of period | $ (23,626) | $ (12,721) | $ (10,260) | $ (11,200) | $ (11,613) | $ (10,260) | $ (12,283) | |||
Provision for loan losses | (2,000) | (10,900) | (3,450) | - | (150) | (16,350) | (350) | |||
Charge-offs | 86 | 34 | 1,098 | 974 | 648 | 1,218 | 2,305 | |||
Recoveries | (239) | (39) | (109) | (34) | (85) | (387) | (872) | |||
Net charge-offs | (153) | (5) | 989 | 940 | 563 | 831 | 1,433 | |||
Ending balance | $ (25,779) | $ (23,626) | $ (12,721) | $ (10,260) | $ (11,200) | $ (25,779) | $ (11,200) | |||
Cummulative reconciliation to CECL (Not yet adopted): | ||||||||||
CECL adoption impact on acquired loans | $ (1,997) | $ (1,997) | $ (1,997) | $ (1,997) | ||||||
CECL adoption impact on retained earnings | (5,429) | (5,429) | (5,429) | (5,429) | ||||||
CECL adoption impact on deferred tax assets | (1,495) | (1,495) | (1,495) | (1,495) | ||||||
Cummulative additional provision for loan losses | (1,649) | (3,191) | (11,016) | (1,649) | ||||||
Ending balance | $ (36,349) | $ (35,738) | $ (32,658) | $ (36,349) | ||||||
Allowance for Unfunded Commitments (Incurred Loss Model): | ||||||||||
Balance at beginning of period | $ (55) | $ (55) | $ (55) | $ (55) | $ (55) | $ (55) | $ (55) | |||
Cummulative reconciliation to CECL (Not yet adopted): | ||||||||||
CECL adoption impact on retained earnings | $ (239) | $ (239) | $ (239) | $ (239) | ||||||
CECL adoption impact on deferred tax assets | (66) | (66) | (66) | (66) | ||||||
Cummulative additional provision for unfunded commitments | (1,224) | (817) | (425) | (1,224) | ||||||
Ending balance | $ (1,584) | $ (1,177) | $ (785) | $ (1,584) |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Net Charge-off Information: | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Charge-offs | ||||||||||||
Commercial, financial and agricultural | $ 13 | $ - | $ 821 | $ 188 | $ 267 | $ 834 | $ 434 | |||||
Real estate - construction and development | - | - | - | - | - | - | - | |||||
Real estate - commercial and farmland | - | - | - | 403 | - | - | 1,244 | |||||
Real estate - residential | 47 | - | 245 | 336 | 316 | 292 | 406 | |||||
Consumer installment | 26 | 34 | 32 | 47 | 65 | 92 | 221 | |||||
Total charge-offs | 86 | 34 | 1,098 | 974 | 648 | 1,218 | 2,305 | |||||
Recoveries | ||||||||||||
Commercial, financial and agricultural | (1) | (18) | (66) | (14) | (65) | (85) | (337) | |||||
Real estate - construction and development | - | - | - | - | - | - | - | |||||
Real estate - commercial and farmland | (4) | (3) | (6) | (3) | (4) | (13) | (210) | |||||
Real estate - residential | (225) | (6) | (31) | (6) | (8) | (262) | (300) | |||||
Consumer installment | (9) | (12) | (6) | (11) | (8) | (27) | (25) | |||||
Total recoveries | (239) | (39) | (109) | (34) | (85) | (387) | (872) | |||||
Net charge-offs | $ (153) | $ (5) | $ 989 | $ 940 | $ 563 | $ 831 | $ 1,433 | |||||
Non-Performing Assets: | ||||||||||||
Accruing loans delinquent 90 days or more | $ - | $ - | $ - | $ - | $ - | $ - | $ - | |||||
Nonaccrual loans | 15,270 | 14,930 | 8,941 | 8,900 | 3,842 | 15,270 | 3,842 | |||||
Other real estate owned | 5,388 | 6,006 | 5,876 | 6,224 | 5,835 | 5,388 | 5,835 | |||||
Total non-performing assets | $ 20,658 | $ 20,936 | $ 14,817 | $ 15,124 | $ 9,677 | $ 20,658 | $ 9,677 | |||||
SBA guaranteed portion of non-performing loans | $ 4,076 | $ 3,513 | $ 2,889 | $ 4,129 | $ 3,309 | $ 4,076 | $ 3,309 | |||||
Troubled debt restructuring | $ 1,629 | $ 1,667 | $ 694 | $ 697 | $ 679 | $ 1,629 | $ 679 | |||||
Loans deferred under COVID-19 modifications | $ 436,591 | $ 707,841 | $ 24,308 | $ - | $ - | $ 436,591 | $ - | |||||
Asset Quality Ratios: | ||||||||||||
Non-performing assets as a percent of total assets, excluding SBA guarantees | ||||||||||||
Net charge-offs as a percent of average loans (annualized) | - | |||||||||||
Allowance for loan losses to total loans | ||||||||||||
Loans by Risk Grade: | ||||||||||||
Pass, not graded | $ 574,954 | $ 653,943 | $ 630,827 | $ 611,160 | $ 568,101 | $ 574,954 | $ 568,101 | |||||
Pass Grade 1 - Highest Quality | 891 | 306 | 538 | 374 | 271 | 891 | 271 | |||||
Pass Grade 2 - Good Quality | 375,861 | 323,512 | 28,583 | 27,855 | 25,852 | 375,861 | 25,852 | |||||
Pass Grade 3 - Satisfactory Quality | 878,031 | 837,606 | 866,316 | 871,463 | 856,087 | 878,031 | 856,087 | |||||
Pass Grade 4 - Pass | 660,630 | 662,534 | 664,124 | 652,464 | 666,958 | 660,630 | 666,958 | |||||
Pass Grade 5 - Special Mention | 14,132 | 14,006 | 11,622 | 12,235 | 13,093 | 14,132 | 13,093 | |||||
Grade 6 - Substandard | 19,210 | 19,597 | 10,528 | 10,496 | 11,023 | 19,210 | 11,023 | |||||
Grade 7 - Doubtful | - | - | - | - | - | - | - | |||||
Grade 8 - Loss | - | - | - | - | - | - | - | |||||
Total loans | $ 2,523,709 | $ 2,511,504 | $ 2,212,538 | $ 2,186,047 | $ 2,141,385 | $ 2,523,709 | $ 2,141,385 |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Average Balances: | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Assets | ||||||||||||
Interest-earning assets: | ||||||||||||
Loans, net of deferred fees | $ 2,501,614 | $ 2,401,620 | $ 2,200,926 | $ 2,156,174 | $ 2,165,717 | $ 2,368,541 | $ 2,160,863 | |||||
Investment securities | 213,039 | 222,124 | 231,794 | 238,563 | 242,916 | 222,285 | 242,891 | |||||
Other earning assets | 163,159 | 91,230 | 54,800 | 54,826 | 65,707 | 103,283 | 70,543 | |||||
Total earning assets | 2,877,812 | 2,714,974 | 2,487,520 | 2,449,563 | 2,474,340 | 2,694,109 | 2,474,297 | |||||
Other assets | 256,284 | 250,897 | 252,700 | 255,916 | 254,550 | 253,304 | 251,232 | |||||
Total assets | $ 3,134,096 | $ 2,965,871 | $ 2,740,220 | $ 2,705,479 | $ 2,728,890 | $ 2,947,413 | $ 2,725,529 | |||||
Liabilities and stockholders' equity | ||||||||||||
Demand deposits | $ 452,500 | $ 418,382 | $ 333,408 | $ 345,191 | $ 334,435 | $ 401,616 | $ 328,790 | |||||
Interest-bearing liabilities: | ||||||||||||
NOW and other demand accounts | 451,583 | 404,700 | 379,531 | 374,328 | 362,564 | 412,083 | 355,511 | |||||
Money market accounts | 504,887 | 488,648 | 469,651 | 464,471 | 456,492 | 487,791 | 430,546 | |||||
Savings accounts | 176,305 | 163,574 | 147,697 | 145,532 | 144,266 | 162,575 | 145,964 | |||||
Time deposits | 590,263 | 710,483 | 756,055 | 832,246 | 867,533 | 685,253 | 880,610 | |||||
Total Deposits | 2,175,538 | 2,185,787 | 2,086,342 | 2,161,768 | 2,165,290 | 2,149,318 | 2,141,421 | |||||
Borrowings | 547,182 | 371,836 | 251,830 | 144,664 | 173,867 | 390,856 | 203,469 | |||||
Total Funding | 2,722,720 | 2,557,623 | 2,338,172 | 2,306,432 | 2,339,157 | 2,540,174 | 2,344,890 | |||||
Other Liabilities | 25,869 | 24,495 | 21,781 | 34,398 | 22,385 | 24,055 | 21,347 | |||||
Stockholders' equity | 385,507 | 383,753 | 380,267 | 374,649 | 367,349 | 383,184 | 359,292 | |||||
Total liabilities and stockholders' equity | $ 3,134,096 | $ 2,965,871 | $ 2,740,220 | $ 2,705,479 | $ 2,728,890 | $ 2,947,413 | $ 2,725,529 | |||||
Memo: SBA PPP loans | $ 335,653 | $ 192,751 | $ - | $ - | $ - | $ 176,717 | $ - |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Net Interest Margin: | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Loans | $ 27,266 | $ 27,044 | $ 26,741 | $ 27,489 | $ 28,340 | $ 81,051 | $ 84,692 | |||||
Investment securities | 1,129 | 1,247 | 1,361 | 1,496 | 1,520 | 3,737 | 4,728 | |||||
Other earning assets | 312 | 381 | 379 | 370 | 614 | 1,072 | 1,750 | |||||
Total Earning Assets | 28,707 | 28,672 | 28,481 | 29,355 | 30,474 | 85,860 | 91,170 | |||||
NIB DDA | ||||||||||||
NOW and other demand accounts | 807 | 745 | 786 | 792 | 783 | 2,338 | 2,198 | |||||
Money market accounts | 800 | 830 | 1,575 | 1,779 | 2,080 | 3,204 | 5,966 | |||||
Savings accounts | 130 | 107 | 116 | 116 | 115 | 353 | 345 | |||||
Time deposits | 2,620 | 3,464 | 4,026 | 4,799 | 5,023 | 10,111 | 14,608 | |||||
Total Deposit Costs | 4,357 | 5,146 | 6,503 | 7,486 | 8,001 | 16,006 | 23,117 | |||||
Other Borrowings | 1,352 | 1,053 | 1,463 | 1,200 | 1,458 | 3,868 | 5,122 | |||||
Total Funding | 5,709 | 6,199 | 7,966 | 8,686 | 9,459 | 19,874 | 28,239 | |||||
Net Interest Income | $ 22,998 | $ 22,473 | $ 20,515 | $ 20,669 | $ 21,015 | $ 65,986 | $ 62,931 | |||||
Memo: SBA PPP loan interest and fee income | $ 2,233 | $ 512 | $ - | $ - | $ - | $ 2,745 | $ - |
Southern National Bancorp of Virginia, inc. (000's, except share data) | For the Three Month Period: | Year to date Period: | ||||||||||
Asset and Liability Yields | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | 3Q 2019 | 3Q 2020 | 3Q 2019 | |||||
Loans | ||||||||||||
Investments | ||||||||||||
Short term assets | ||||||||||||
Total Earning Assets | ||||||||||||
NOW | ||||||||||||
MMDA | ||||||||||||
Savings | ||||||||||||
CDs | ||||||||||||
Interest Bearing Deposits | ||||||||||||
(total cost of deposits) | ||||||||||||
Other Funding | ||||||||||||
Total Cost of Funding | ||||||||||||
Net Interest Margin | ||||||||||||
Net Interest Spread | ||||||||||||
Memo: Yields without SBA PPP loans | ||||||||||||
Loans | ||||||||||||
Total Earning Assets | ||||||||||||
Net Interest Margin | ||||||||||||
Net Interest Spread |
Contacts:
Dennis J. Zember, Jr., President and CEO
Phone: 804-997-2406
Jeffrey L. Karafa, EVP and CFO
Phone: 804-997-2404
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SOURCE Southern National Bancorp of Virginia, Inc.
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