Eastern Virginia Bankshares, Inc., Sonabank, Southern Trust Mortgage Management Enter Into Agreement With Middleburg Bank To Purchase Middleburg Bank's Interests In Southern Trust Mortgage
TAPPAHANNOCK, Va., March 27, 2014 /PRNewswire/ -- Eastern Virginia Bankshares, Inc. (NASDAQ: EVBS), the holding company for EVB, Southern National Bancorp of Virginia Inc. (NASDAQ: SONA), the holding company for Sonabank, and Jerry Flowers of Southern Trust Mortgage (STM), announced today that the two banks and Jerry Flowers have reached an agreement with Middleburg Bank to purchase the 62 percent of STM currently owned by Middleburg Bank. Upon the closing of the transaction, Jerry Flowers and other STM executives will own 51.1 percent of STM, Sonabank will own 44 percent and EVB will own 4.9 percent.
STM is a mortgage banking company headquartered in Virginia Beach. It was founded in 1998 by Jerry Flowers, and has mortgage banking originators in Virginia, Maryland, North Carolina and South Carolina. Southern Trust Mortgage only originates retail mortgage production.
STM is an approved Fannie Mae, Freddie Mac, VA and FHA lender. In addition, Southern Trust Mortgage is one of a select few lenders to have received approval from Ginnie Mae to issue securities on its behalf. Having all agency approvals greatly expands the mortgage products and, therefore, expands EVB's ability to positively impact the lives of our customer base with mortgage products suited to every economic spectrum.
The continuation of our seven year relationship will help expand our consumer real estate services with additional STM loan officers in more of our EVB branch locations. STM will originate non-conforming residential mortgage loans for EVB's residential mortgage loan portfolio in their markets in accordance with credit criteria provided by EVB.Joe Shearin, CEO of Eastern Virginia Bankshares, Inc, and EVB stated "We have worked with Southern Trust Mortgage for many years and are excited to build upon this relationship which will help to expand our existing mortgage products while continuing to provide high quality service to our customers. Southern Trust is a well managed company that has come through many mortgage industry business cycles with a solid reputation for quality and customer service." Jerry Flowers, President of STM commented: "We are very excited to have Sonabank as our new Banking partner along with EVB who we have been doing business with for the past seven years. Having EVB and Sonabank as partners, will allow us to expand in their market areas and will give us banking partners that not only want to be a part of STM's existing model but would like for us to expand our mortgage footprint." Eastern Virginia Bankshares, Inc. is a bank holding company with assets of $1.0 billion at December 31, 2013. The Company's banking subsidiary, EVB, operates twenty-one full service branches in eastern Virginia located in the counties of Essex, Gloucester, Hanover, Henrico, King William, Lancaster, Middlesex, New Kent, Northumberland, Southampton, Surry and Sussex and the City of Colonial Heights. Forward-Looking Statements Certain statements contained in this release that are not historical facts may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements contained in this release include, but are not limited to: (i) the anticipated closing of the transaction described in this release, (ii) statements of expectations of Eastern Virginia Bankshares, Inc. (the "Company") or its management or Board of Directors with respect to the future business relationship with Southern Trust Mortgage; (iii) the future impact of the transaction on the business of the Company and EVB; and (iv) statements of assumptions underlying such statements.
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