FIG Has Now Advised On 30 Whole Bank Transactions Nationwide
Totaling Over $2.0 Billion Since 2015
ATLANTA, December 13, 2016 — Southern National Bancorp of Virginia Inc. (NASDAQ:SONA) (Southern National), the holding company for Sonabank, and Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS) (Eastern Virginia), the holding company for EVB, have announced the signing of a definitive merger agreement.
Upon completion of the transaction, the combined company will have approximately $2.4 billion in total assets, $2.0 billion in total deposits, and $1.8 billion in total loans.
The company, which will assume the Southern National Bancorp of Virginia, Inc. name for the holding company and the Sonabank name for all banking operations, will maintain its corporate headquarters in McLean, Virginia and the headquarters of the bank in Richmond, Virginia. The company will have 47 branch locations covering markets in both Maryland and Virginia, including the Washington, D.C. and Richmond, Virginia MSAs.
Eastern Virginia common and preferred shareholders will receive a fixed exchange ratio equal to 0.6313 shares of Southern National common stock for each share of Eastern Virginia common stock or preferred stock owned. Based on the average closing price of Southern National’s common stock for the ten trading days ended December 12, 2016, the transaction is valued at approximately $178.3 million, or $9.72 per share of Eastern Virginia common and preferred stock. Southern National shareholders will own approximately 51.4 percent of the combined company and Eastern Virginia shareholders will own approximately 48.6 percent.
The management team of the combined company will be comprised of Joe A. Shearin, currently President and CEO of Eastern Virginia, as President and CEO, Georgia S. Derrico, currently Chairman and CEO of Southern National, as Executive Chairman, and R. Roderick Porter, currently Vice Chairman and President of Southern National, as Executive Vice Chairman. The board of directors of the combined company will be fixed at eleven directors, consisting of six members of the current Southern National board of directors, including Ms. Derrico and Mr. Porter, and five members of the current Eastern Virginia board of directors, including Mr. Shearin.
“We believe this is a unique opportunity to combine two very different organizations in order to become an even stronger Virginia based organization with a diverse retail franchise and a dynamic lending based platform,” said Derrico. “We have known Joe Shearin for over nine years. Through our mutual investment in Southern Trust Mortgage, which has been a tremendous success, we have developed a strong confidence in one another’s judgement and banking capabilities. We look forward to operating a much larger organization in a cost effective way to increase profitability and shareholder value.”
“This is the opportunity of a career to combine the best elements of two successful, distinctive but complementary banks into a single strong institution,” said Porter. “In the coming months, we will continue to put together the best processes and the best people of the two institutions to create a streamlined bank with the strongest risk controls which adds to efficiency without sacrificing customer service.”
The transaction is expected to close during the second quarter of 2017 and EVB will merge with and into Sonabank immediately after the merger of Eastern Virginia with and into Southern National.
FIG Partners served as financial advisor to Southern National Bancorp of Virginia. The FIG team included Matthew Veneri, Managing Principal and Co-Head of Investment Banking, and Jerad Comarda, Associate.
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