Southern National Bancorp of Virginia Inc. Signs an Agreement to Purchase
Certain Assets and Assume a Lease Agreement of Founders Corporation in Leesburg,
Virginia
CHARLOTTESVILLE, Va., Dec. 19, 2007 (PRIME NEWSWIRE) -- Southern National
Bancorp of Virginia Inc. (Nasdaq:SONA) announced today that it has executed an
agreement with Founders Corporation in Leesburg, Virginia to purchase certain
assets and assume a lease agreement on the ground floor of 1 East Market Street
in Leesburg, Virginia. This is the historic banking center in the heart of
Leesburg, in the old Loudoun National Bank which dates back to the 1800s. The
banking floor has been completely renovated and Sonabank will open a branch
there as soon as its branch application is approved by its regulator, the Office
of the Comptroller of the Currency (the "OCC").
Founders Corporation had received both FDIC and Federal Reserve approval, as
well as a Conditional Charter from the OCC to open a bank subject to certain
conditions including the raising of $29 million in net capital. Given the
current turmoil in the financial markets, Founders was unable to raise the
minimum amount of capital it was expecting from institutional investors. As a
consequence, it has returned to its local investors the funds which were in
escrow.
Going forward, Brad Gable and Ed Wetherell of Founders Corporation will become
Chairman and Vice Chairman, respectively, of Sonabank's Advisory Board for
Leesburg and Loudoun County. Other members of that Board will be comprised of
Board Members of Founders as well as the Organizing Investors of Founders
Corporation. In addition, the Organizing Investors of Founders Corporation will
receive warrants to purchase shares of SONA.
"We are so pleased to be working with a high quality, fast growing, community
bank -- with a fantastic track record," said Gable, Chairman of the local
advisory board.
Georgia Derrico, Chairman and CEO of Southern National Bancorp (SONA) commented,
"This is a wonderful market, with a great team working to provide the best
community banking has to offer in Leesburg and Loudoun County."
Southern National Bancorp of Virginia is the holding company for Sonabank N.A.
Sonabank has branches in McLean, Reston, Fairfax, Warrenton, Charlottesville and
Clifton Forge, Virginia. As of September 30, 2007, Sonabank had total assets of
$345.3 million and total capital of $69.5 million. For the first nine months of
2007 Sonabank had net income of $1.6 million. It had a risk based capital ratio
of 21.57% and a legal lending limit of over $7 million.
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 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. You should consider such factors and not place undue reliance on such
forward-looking statements. No obligation is undertaken by Southern National
Bancorp to update such forward-looking statements to reflect events or
circumstances occurring after the issuance of this press release.
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CONTACT: Southern National Bancorp
R. Roderick Porter, President
202-464-1130 ext. 2406
Fax: 202-464-1134
www.sonabank.com
