Southern National Bancorp Of Virginia Inc. Reports Earnings Of $1.0 Million For The Second Quarter And $2.1 Million For The First Half Of 2010, And Announces Appointment Of New Chief Credit Officer
MCLEAN, Va., July 22, 2010 (GLOBE NEWSWIRE) -- Southern National Bancorp of Virginia Inc. (Nasdaq:SONA), the holding company for Sonabank, announced today that net income for the quarter ended June 30, 2010 was $1.0 million and $2.1 million for the six months ended June 30, 2010 compared to $23 thousand and $549 thousand during the second quarter and the first six months of 2009. Earnings in the second quarter and first half of 2009 were adversely impacted by other than temporary impairment ("OTTI") charges of $863 thousand before tax on several of Sonabank's trust preferred securities. There were no OTTI charges on the trust preferred securities this quarter.
Net Interest Income
Net interest income was $6.4 million in the quarter ended June 30, 2010 up from $3.5 million during the same period last year. The accretion of the discount on Greater Atlantic Bank's loans contributed $635 thousand to second quarter net interest income. Sonabank's net interest margin was 4.70% in the second quarter compared to 3.51% during the comparable quarter last year and 4.62% during the first quarter of 2010. The cost of funds decreased from 1.81% in the first quarter of 2010 to 1.79% in the second quarter despite the implementation of a strategy of extending the terms of certificates of deposit as they matured to protect against possible future rises in interest rates. Certificates of deposit issued in the second quarter of 2010 had a weighted average maturity of 1 year and 11 months and a weighted average rate of 1.37%.Net interest income was $12.7 million during the six months ended June 30, 2010, compared to $6.5 million during the comparable period in the prior year. Average loans during the first six months of 2010 were $460.5 million compared to $315.1 million during the same period last year. The Greater Atlantic Bank loan discount accretion contributed $1.3 million during the first half of 2010.
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