Less than a month after taking over a failed Maryland bank, Sonabank in McLean, Va., has unloaded the bulk of the problem loans it inherited in the deal.
Sonabank, the sole banking subsidiary of Southern National Bancorp of Virginia (SONA), assumed the deposits and certain assets of HarVest Bank of Maryland in Rockville after the Federal Deposit Insurance Corp. seized the $164 million-asset HarVest on April 27.
On Tuesday, Sonabank announced that it has sold $19 million of HarVest's nonperforming loans — or roughly 20% of the total loans it inherited — to Garrison Investment Group of New York. A sale price was not disclosed.
Sonabank's takeover of HarVest did not include a loss-sharing agreement with the FDIC so the bank was motivated to sell off the problem assets quickly. "After closing the bulk sale, we can focus on integrating and growing our Maryland franchise," Sonabank Chief Executive Georgia Derrico said in a news release.
The buyer, Garrison, is a leading investor in distressed loans. The firm has about $3 billion of assets under management.