UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
________________________
Form
8-K
________________________
Current
Report Pursuant to Section 13 or 15(d) of
The
Securities Act of 1934
Date
of Report (Date of earliest event
reported): September 12, 2008
________________________
SOUTHERN
NATIONAL BANCORP OF VIRGINIA, INC.
(Exact
name of registrant as specified in its charter)
________________________
| Virginia |
001-33037 |
20-1417448 |
| (State or
other jurisdiction of |
(Commission |
(I.R.S.
Employer |
| incorporation
or organization) |
File
Number) |
Identification
No.) |
1770
Timberwood Boulevard
Suite
100
Charlottesville,
Virginia 22911
(Address
of principal executive offices, including zip code)
________________________
Registrant’s
telephone number, including area code: (434)
973-5242
________________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
[
]
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)
|
|
|
Pre-commencement
communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR
240.13c-4(c))
|
Item
8.01 Other Events
On
September 7, 2008, the U.S. Treasury, the Federal Reserve and the Federal
Housing Finance Agency (FHFA) announced that FHFA was placing the Federal
National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac) under conservatorship and would eliminate dividends on
Fannie Mae and Freddie Mac common and preferred stock. These preferred stocks
were also downgraded by the rating agencies to below investment grade. Southern
National Bancorp of Virginia, Inc. (SNBV) believes that these government actions
have adversely impacted the value of the Freddie Mac preferred stock held by
SNBV and on September 12, 2008, determined that a charge would be
required.
At June
30, 2008, SNBV held $1.4 million of Freddie Mac preferred stock. The impact of
the above-described actions and concerns in the marketplace about the future
value of Freddie Mac securities have caused the value of these investments to
decrease materially. It is unclear when and if the value of the investment will
improve. Based on these developments, SNBV expects to record an
other-than-temporary impairment charge of the entire investment or $1.4 million
to its income statement for the quarter ending September 30, 2008. The estimated
after tax charge is $948 thousand. The company expects to be able to record a
tax benefit for the impairment charge based on its evaluation of tax planning
strategies.
SNBV
expects to remain “well-capitalized” under regulatory standards with a Tier 1
capital ratio estimated to be in excess of 17% after the impairment
charge.
SNBV does
not hold any common or any other equity securities issued by Fannie Mae or
Freddie Mac.
Forward-Looking-Statements
This
document contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that relate to future events or the
future performance of Southern National Bancorp of Virginia, Inc.
Forward-looking statements are not guarantees of performance or results. These
forward-looking statements are based on the current beliefs and expectations of
the respective management of Southern National Bancorp and Sonabank and are
inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond their respective
control. In addition, these forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change. Actual results may differ materially from the anticipated
results discussed or implied in these forward-looking statements because of
numerous possible uncertainties. Words like "may," "plan," "contemplate,"
"anticipate," "believe," "intend," "continue," "expect," "project," "predict,"
"estimate," "could," "should," "would," "will," and similar expressions, should
be considered as identifying forward-looking statements, although other phrasing
may be used. Such forward-looking statements involve risks and uncertainties and
may not be realized due to a variety of factors. Additional factors that could
cause actual results to differ materially from those expressed in the
forward-looking statements are discussed in the reports (such as Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q) filed by Southern National
Bancorp. You should consider such factors and not place undue reliance on such
forward-looking statements. No obligation is undertaken by Southern National
Bancorp to update such forward-looking statements to reflect events or
circumstances occurring after the issuance of this press release.
SIGNATURE
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
SOUTHERN NATIONAL BANCORP OF VIRGINIA,
INC.
Date:
September 12,
2008 By: /s/ William H.
Lagos
William H. Lagos
Senior
Vice President and
Chief Financial Officer