{"id":8325,"date":"2020-04-30T11:40:00","date_gmt":"2020-04-30T11:40:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/?p=2536978"},"modified":"2020-04-30T11:40:00","modified_gmt":"2020-04-30T11:40:00","slug":"southern-national-bancorp-of-virginia-inc-announces-earnings-of-27-thousand-for-the-quarter-ended-march-31-2020","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2020\/04\/30\/southern-national-bancorp-of-virginia-inc-announces-earnings-of-27-thousand-for-the-quarter-ended-march-31-2020\/","title":{"rendered":"Southern National Bancorp of Virginia, Inc. announces earnings of $27 thousand for the quarter ended March 31, 2020"},"content":{"rendered":"

Southern National Bancorp of Virginia<\/span>, Inc. (NASDAQ: SONA) (“Southern National” or the “Company”), and its wholly-owned subsidiary Sonabank (the “Bank”), today announced net income of $27 thousand<\/span> for the quarter ended March 31, 2020<\/span>, compared to $6.0 million<\/span> for the quarter ended March 31, 2019<\/span>.  Earnings per share for the three months ended March 31, 2020<\/span> were $0.00<\/span> basic and diluted compared to $0.25<\/span> basic and diluted for the three months ended March 31<\/span>, 2019.  <\/p>\n

Earnings for the three months ended March 31, 2020<\/span> include a pre-tax one-time charge of $5.3 million<\/span> of salary and benefits expense related to the restructuring of executive management and a $479 thousand<\/span> pre-tax one-time charge to occupancy for the pending closure of three underperforming branch offices.  Earnings for the three months ended March 31, 2019<\/span> include a pre-tax one-time operational loss of $3.2 million<\/span> and related legal expense of $502 thousand<\/span>.<\/p>\n

The following is a summary of our recurring earnings at March 31, 2020<\/span> and 2019:<\/p>\n

\n
\n
\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/td>\n <\/td>\n <\/td>\n\n

For the Three Months Ended<\/strong><\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n\n

(Dollars in thousands)<\/em><\/span><\/p>\n<\/td>\n

\n

March 31,<\/strong><\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\n\n

2020<\/strong><\/span><\/p>\n<\/td>\n

 <\/td>\n\n

2019<\/strong><\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
\n

Net income excluding the nonrecurring expenses (Non-GAAP)<\/strong><\/span><\/p>\n<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n\n

Net income (GAAP)<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

$               27<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

$           6,020<\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n\n

Nonrecurring other loss and related legal expenses<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

–<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

3,702<\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n\n

Nonrecurring management restructure and branch closing expenses<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

5,378<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

–<\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n\n

Income tax effect of adjustment for the nonrecurring expenses<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

(1,076)<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

(777)<\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
\n

Net income excluding the nonrecurring expenses (Non-GAAP)<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

$           4,329<\/span><\/p>\n<\/td>\n

 <\/td>\n\n

$           8,945<\/span><\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n

The Board of Directors also announces and declares a dividend of $0.10<\/span> per share payable on May 22, 2020<\/span> to shareholders of record on May 11<\/span>, 2020.  This is Southern National’s thirty-fourth consecutive quarterly dividend. <\/p>\n

Commenting on the quarter, President and CEO Dennis J. Zember, Jr.<\/span> said, “I am very proud of the Company and our employees for the tireless work in the first quarter.  We made so many rapid decisions to continue serving our clients and our staff responded with so much enthusiasm.  We are taking advantage of the rapid decline in interest rates to quickly shift our focus on funding away from time deposits, improving our funding costs and making real improvements to our balance sheet that will drive long-term value.  On the loan side, we are working with customers to provide certain modifications as needed and to process more than 3,000 applications for the SBA’s Payroll Protection Program.”<\/p>\n

Highlights for the three months ended March 31, 2020<\/span> include:<\/strong><\/p>\n