Primis Financial Corp. · NASDAQ:FRST
Primis Financial — Southern National Bancorp of Virginia — IPO Roadshow (October 2009)
34 slides from Primis Financial's IPO roadshow presentation, Oct 26, 2009
Slide 1: Southern National Bancorp of Virginia, Inc. Common Stock Offering
Exhibit 99.1 Southern National Bancorp of Virginia, Inc. The Holding Company For Common Stock Offering October 2009 Presented By:
Slide 2: Important Information Regarding This Presentation
Southern National Bancorp of Virginia IMPORTANT INFORMATION REGARDING THIS PRESENTATION All information contained in this presentation is obtained from sources believed to be accurate and reliable. However, such information is presented “as is” without warranty of any kind, and the company makes no
Slide 3: Forward-Looking Statements
Southern National Bancorp of Virginia FORWARD-LOOKING STATEMENTS This presentation contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1
Slide 4: Use of Non-GAAP Financial Measures
Southern National Bancorp of Virginia USE OF NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures determined by methods other than in accordance with U.S. generally accepted accounting principles. Such non-GAAP financial measures may include the following, among
Slide 5: Offering Term Summary
Southern National Bancorp of Virginia Offering Term Summary Issuer: Southern National Bancorp of Virginia, Inc. Ticker / Exchange: SONA / NASDAQ Type of Security: Common Stock Trading Price: $7.30 as of 10/22/2009 Pre-Offering Shares Outstanding: 6,798,547 as of 10/22/2009 Transaction Size: $25 mill
Slide 6: Company Summary
Southern National Bancorp of Virginia Company Summary Southern National is the holding company for the $462-million-asset Sonabank (as of September 30, 2009), headquartered in McLean, Virginia, which opened for business in 2005. Southern National exceeded $400 million in assets in 4 years by utilizi
Slide 7: Offering Rationale: Position The Company To Take Advantage Of Market Opportunities
Southern National Bancorp of Virginia Offering Rationale: Position The Company To Take Advantage Of Market Opportunities The capital raised in the offering will: Strengthen the capital position of the company. Support the expected organic growth of the company and allow it to take advantage of oppor
Slide 8: Management Team
Southern National Bancorp of Virginia Management Team Georgia S. Derrico, Chairman & Chief Executive Officer Georgia S. Derrico is the Chairman of the Board and Chief Executive Officer of Southern National and Sonabank. Prior to co- founding Southern National in July 2004, she was the Chairman of th
Slide 9: Southern National Branches
Southern National Bancorp of Virginia Southern National Branches 6/30/09 Bank Level Deposits (1) Address City Zip ($000) (2) 1770 Timberwood Blvd # 100 Charlottesville 22911-7501 110,152 (2) 6830 Old Dominion Dr McLean 22101-6035 76,644 511 Main St Clifton Forge 24422-1166 47,813 (3) 11A Main St War
Slide 10: Summary Demographic Information
Southern National Bancorp of Virginia Summary Demographic Information – By MSA/County Population Projected Median Household Projected Number Total Change 2000 Population Household Income Household Market of Population 2009 Change 2009-2014 Income 2009 Change 2000- Income Change MSA Rank Branches 200
Slide 11: Economic Drivers
Southern National Bancorp of Virginia Economic Drivers Washington MSA: Stable and diverse economy; primary economic driver is the federal government and the numerous government agencies and government contractors located in the MSA. Additionally, many trade unions, non-profit organizations, law firm
Slide 12: Economic Drivers
Southern National Bancorp of Virginia Economic Drivers Charlottesville MSA: University of Virginia is the major economic driver for the area. UV’s payroll exceeds 20,000 people and the student population is 24,500. A variety of commercial and non-profit enterprises and the presence of the federal go
Slide 13: Demonstrated Ability To Generate Growth Over The Past 3.5 Years
Southern National Bancorp of Virginia Southern National Has Demonstrated An Ability To Generate Growth Over The Past 3.5 Years 3.5-Year CAGR (2005-2Q09): $433 $450 $432 Net Loans 52.2% $400 Total Deposits 49.4% $377 Total Assets 43.3% $315 $350 $322 $309 $291 $298 $300 $258 $265 $250 $216 $202 $200
Slide 14: Loan Portfolio Mix
Southern National Bancorp of Virginia Loan Portfolio Mix Sonabank Loan Portfolio Composition June 30, 2009 Residential Constr Farm, 1.9% & Dev, 6.3% Consumer, 1.0% Other Constr & Dev, 7.8% C&I, 20.8% 1-4 Family, Non-Owner 23.1% Occupied CRE, 15.7% Owner Occupied CRE, 21.4% Multifamily, 2.3% Note: Th
Slide 15: SBA Rankings
Southern National Bancorp of Virginia SBA Rankings Washington, DC District Richmond, VA District SBA Loans Statitistics - 10/01/2008 to 09/30/2009 SBA Loans Statitistics - 10/01/2008 to 09/30/2009 Ranking by Loan Volume Ranking by Loan Volume Rank Lender Loans Amount ($) Rank Lender Loans Amount ($)
Slide 16: Credit Quality Details
Southern National Bancorp of Virginia Credit Quality Details 2005 Y 2006 Y 2007 Y 2008 Y 1Q09 2Q09 Nonperforming Assets ($000) Nonaccrual Loans 0 0 371 1,078 1,190 2,244 90+ Days Delinquent 0 0 0 135 0 0 OREO 0 0 3,648 3,434 3,476 3,415 Nonperforming Assets 0 0 4,019 4,647 4,666 5,659 Loan Loss Rese
Slide 17: Credit Quality – Southern National Vs. Peers
Southern National Bancorp of Virginia Credit Quality – Southern National Vs. Peers NPAs / Assets Net Charge-offs / Average Loans 2.50% 1.05% 2.10% 0.86% 2.00% 0.84% 0.73% 1.55% 1.50% 1.31% 0.63% 1.07% 1.08% 0.43% 1.00% 0.42% 0.74% 0.32% 0.24% 0.21% 0.50% 0.21% 0.14% 0.19% 0.10% 0.04% 0.02% 0.00% 0.0
Slide 18: Deposit Portfolio Mix
Southern National Bancorp of Virginia Deposit Portfolio Mix Sonabank Deposit Composition June 30, 2009 NOW, 2.3% Savings+ MMDAs, 8.1% Brokered MMDAs, 8.5% Demand, 8.7%* Retail CDs, 15.8% Jumbo CDs, 32.1% Brokered CDs, 24.5% Non-interest bearing deposits represent 8.7% of total deposits* * Non-intere
Slide 19: Securities Portfolio Overview
Southern National Bancorp of Virginia Securities Portfolio Overview Sonabank owns a portfolio of trust preferred securities. These securities have been adversely affected by the continued deterioration of some sectors of the banking system which have resulted in increased deferrals and defaults in t
Slide 20: Securities Portfolio Overview – cont.
Southern National Bancorp of Virginia Securities Portfolio Overview – cont. At the end of the second quarter of 2009, management’s analysis deemed three of the ten securities owned were other than temporarily impaired. The cash flow analysis in the second quarter indicated that one security, ALESCO
Slide 21: Securities Portfolio Overview – cont.
Southern National Bancorp of Virginia Securities Portfolio Overview – cont. rd Subsequent to the Initial Report of the Company’s 3 quarter earnings on October 20, 2009, the Company learned of additional deferrals made in the fourth quarter of 2009 on three of the trust preferred securities it owns.
Slide 22: Net Income & Revenues
Southern National Bancorp of Virginia Net Income & Revenues Operating Revenues Net Income 20,000 15,000 10,000 5,000 0 2005 2006 2007 2008 1Q09* 2Q09* -5,000 Note: Operating revenue refers to net interest income plus noninterest income. Noninterest income excludes gain/loss on sale of securities and
Slide 23: Solid Core Profitability
Southern National Bancorp of Virginia Solid Core Profitability Pre-Tax Pre-Provision ROAA * 1.60% 1.40% 1.27% 1.17% 1.20% 1.11% 1.07% 1.01% 1.00% 0.79% 0.80% 0.57% 0.57% 0.60% 0.44% 0.40% 0.20% 0.00% -0.06% -0.20% 2005 2006 2007 2008 6/30/2009 SONA Peer Average * See Pages 30-32 for non-GAAP reconci
Slide 24: Net Interest Margin And Operating Revenue Breakdown
Southern National Bancorp of Virginia Net Interest Margin And Operating Revenue Breakdown Net Interest Margin (%) Operating Revenue Breakdown ($000) 4.50 4.01 4.00 3.65 3.51 3.50 3.26 3.12 3.00 2.50 2.00 1.50 1.00 0.50 Noninterest Income as % of Operating Revenue 0.00 2005 2006 2007 2008 1Q09* 2Q09*
Slide 25: Strong Capital Ratios
Southern National Bancorp of Virginia Strong Capital Ratios Tier 1 Leverage Ratio Total Risk-Based Capital Ratio 40.00% 40.00% 35.38% 33.96% 35.00% 35.00% 30.00% 28.46% 30.00% 25.94% 25.00% 25.00% 19.63% 18.71% 20.00% 20.00% 17.26% 16.30% 16.03% 16.21% 15.44% 13.71% 14.04% 13.05% 15.00% 11.84% 11.97
Slide 26: Third Quarter Update
Southern National Bancorp of Virginia Third Quarter Update Southern National reported 3Q09 net income of $88 thousand. Net Interest Margin expanded to 3.89%, up 38bps from the 3.51% in 2Q09. Net Interest Income for the quarter was $3.95 million, an increase of 13.2% over the preceding quarter. Credi
Slide 27: Pro Forma Capital Ratios
Southern National Bancorp of Virginia Pro Forma Capital Ratios Assumptions $000s Offering Size 25,000 Capital Raised, Including Over-Allotment 28,750 (1) Net Capital Raised 26,939 Risk Weighing Of New Capital 20% (2) SONA Peer Average 2Q09 3Q09 3Q09 Consolidated Capital Ratios Actual Actual Pro Form
Slide 28: Current Market Valuation
Southern National Bancorp of Virginia Current Market Valuation Peer Group Pricing Ratios (1) SONA Average (2) Price / Book Value Per Share (%) 74.7% 93.9% Price / Tangible Book Value Per Share (%) 90.5% 97.4% Price / Pre-Tax Pre-Provision Earnings (x) 7.5x * 9.1x * See Pages 30-32 for non-GAAP recon
Slide 29: Investment Highlights
Southern National Bancorp of Virginia Investment Highlights An opportunity to be part of a growing company that will be positioned to take advantage of strategic growth opportunities that arise out of the turmoil caused by the current economic crisis. Earnings Potential In An Attractive Market Washi
Slide 30: Appendix A
Southern National Bancorp of Virginia Appendix A 30
Slide 31: Non-GAAP Reconciliation Tables
Southern National Bancorp of Virginia Non-GAAP Reconciliation Tables Amounts In $000s, Except Percentages Gross Proceeds From Offering 25,000 Gross Proceeds From Offering, Including Overallotment 28,750 Less Underwriting Fees & Commission 1,366 Less Legal, Printing, & Other Expenses 445 Net Proceeds
Slide 32: Non-GAAP Reconciliation Tables
Southern National Bancorp of Virginia Non-GAAP Reconciliation Tables Amounts In $000s, Except Percentages 6/30/2009 YTD 9/30/2009 YTD Pre-Tax Pre-Provision ROAA Actual Actual Net Income 549 637 Income Taxes 147 126 Loan Loss Provisions 1,025 2,203 Adjusted for the following: Securities Gains/Losses
Slide 33: Non-GAAP Reconciliation Tables
Southern National Bancorp of Virginia Non-GAAP Reconciliation Tables As Of 6/30/2009 YTD - Amounts In $000s, Except Percentages Burke & Greater Access Alliance Herbert Bank Cardinal Eagle Fauquier Atlantic Middleburg Millennium United Financial Virginia Southern Nationa National Bankshares & Trust F
Slide 34: Southern National Bancorp of Virginia
Southern National Bancorp of Virginia Presented By: 34
Southern National Bancorp of Virginia — IPO Roadshow (October 2009) on 6ix