NasdaqGM:SONA

Stock Analysis Report

Southern National Bancorp of Virginia

Executive Summary

Southern National Bancorp of Virginia, Inc.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Southern National Bancorp of Virginia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SONA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

SONA

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-5.7%

SONA

10.3%

US Banks

17.9%

US Market

Return vs Industry: SONA underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: SONA underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

SONAIndustryMarket
7 Day-4.3%-1.2%-1.1%
30 Day-1.0%-0.3%1.4%
90 Day-3.9%-0.9%6.9%
1 Year-3.5%-5.7%13.5%10.3%20.3%17.9%
3 Year-4.3%-10.2%24.0%15.1%47.8%38.3%
5 Year44.0%26.1%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Southern National Bancorp of Virginia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Southern National Bancorp of Virginia undervalued compared to its fair value and its price relative to the market?

11.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SONA ($15.25) is trading above our estimate of fair value ($14.76)

Significantly Below Fair Value: SONA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SONA is good value based on its PE Ratio (11.1x) compared to the Banks industry average (12.6x).

PE vs Market: SONA is good value based on its PE Ratio (11.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SONA is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SONA is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Southern National Bancorp of Virginia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SONA's forecast earnings growth (2.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SONA's earnings (2.4% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: SONA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SONA's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: SONA's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SONA's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Southern National Bancorp of Virginia performed over the past 5 years?

35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONA has high quality earnings.

Growing Profit Margin: SONA's current net profit margins (34.6%) are lower than last year (34.8%).


Past Earnings Growth Analysis

Earnings Trend: SONA's earnings have grown significantly by 35.8% per year over the past 5 years.

Accelerating Growth: SONA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SONA had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the Banks industry average (12.2%).


Return on Equity

High ROE: SONA's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Southern National Bancorp of Virginia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SONA has a low level of unsold assets or inventory.

Debt Coverage by Assets: SONA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: SONA's level of assets compared to its equity is low.

Allowance for Bad Loans: SONA has a sufficient allowance for bad loans.

Low Risk Liabilities: SONA's liabilities are made up of primarily low risk sources of funding.

Loan Level: SONA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SONA's loans are broadly funded by customer deposits.

Level of Bad Loans: SONA has an appropriate level of bad loans (0.41%)


Next Steps

Dividend

What is Southern National Bancorp of Virginia's current dividend yield, its reliability and sustainability?

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: SONA's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SONA's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: SONA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SONA's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), SONA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SONA's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Dennis Zember (49yo)

0

Mr. Dennis J. Zember, Jr., serves as President, Chief Executive Officer and Directors of Southern National Bancorp of Virginia, Inc. and its wholly-owned subsidiary, Sonabank since February 19, 2020. He se ...


Leadership Team

NamePositionTenureCompensationOwnership
Georgia Derrico
Co-Founder & Executive Chairman15.6yrsUS$1.38m1.7% $6.3m
R. Porter
Co-Founder & Executive Vice Chairman15.6yrsUS$1.05m1.28% $4.7m
Jeffrey Karafa
Executive VP & CFO1.4yrsUS$324.04k0.027% $97.8k
Joe Shearin
Consultant0yrsUS$1.10m0.36% $1.3m
Dennis Zember
President0yrsno data0.083% $305.0k
George Sheflett
Executive VP0.9yrsno data0.043% $160.1k
William Stevens
Chief Credit Risk Officer14.8yrsUS$217.42k0.085% $313.6k
Douglas Taylor
Chief Risk Officer2.7yrsno datano data
R. Porter
Secretary0yrsno datano data
Robyn Reid
VP, Treasurer & Controller0yrsno datano data

2.7yrs

Average Tenure

63yo

Average Age

Experienced Management: SONA's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Georgia Derrico
Co-Founder & Executive Chairman15.6yrsUS$1.38m1.7% $6.3m
R. Porter
Co-Founder & Executive Vice Chairman15.6yrsUS$1.05m1.28% $4.7m
Dennis Zember
President0yrsno data0.083% $305.0k
F. Garrett
Independent Director2.7yrsUS$47.55k0.10% $371.1k
William Cook
Independent Director2.7yrsUS$49.40k0.080% $294.4k
Eric Johnson
Independent Director2.7yrsUS$50.00k0.10% $386.2k
Charles Kabbash
Independent Director14.8yrsUS$48.00k0.52% $1.9m
John Biagas
Independent Director2.7yrsUS$62.75k0.20% $727.0k
W. Jennings
Independent Director8.3yrsUS$47.55k0.16% $588.9k
Robert Clagett
Independent Director5.5yrsUS$50.75k0.11% $416.3k

5.5yrs

Average Tenure

71yo

Average Age

Experienced Board: SONA's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SONA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Southern National Bancorp of Virginia, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southern National Bancorp of Virginia, Inc.
  • Ticker: SONA
  • Exchange: NasdaqGM
  • Founded: 2004
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$368.768m
  • Shares outstanding: 24.18m
  • Website: https://www.sonabank.com

Number of Employees


Location

  • Southern National Bancorp of Virginia, Inc.
  • 6830 Old Dominion Drive
  • McLean
  • Virginia
  • 22101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2006

Biography

Southern National Bancorp of Virginia, Inc. operates as the bank holding company for Sonabank that provides commercial banking services to middle market corporate clients and retail clients in the United States. Its deposit products include noninterest-bearing and interest-bearing checking, commercial checking, money market, and savings accounts, as well as certificates of deposit. The company’s loan portfolio comprises commercial mortgage and non-mortgage loans, including commercial real estate loans, construction to permanent loans, development and builder loans, accounts receivable financing, lines of credit, equipment and vehicle loans, leasing, and commercial overdraft protection; construction loans for commercial, multifamily, and other non-residential properties; commercial business loans, such as lines of credit, revolving credit facilities, demand loans, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; residential mortgage lending; and secured and unsecured consumer loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, lockbox, depository transfer, merchant, ACH origination, check 21 processing, asset based lending, and mobile banking application services. In addition, the company provides other consumer/retail products and services that include debit and credit cards, ATM services, travelers’ checks, notary services, and online banking services. As of December 31, 2018, it had 38 full-service retail branches in Virginia and 7 full-service retail branches in Maryland. The company was founded in 2004 and is headquartered in McLean, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:30
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.