MCLEAN, Va., Oct. 28, 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 September 30, 2010 was $1.1 million and $3.2 million for the nine months ended September 30, 2010 compared to $88 thousand and $637 thousand during the third quarter and the first nine months of 2009. The earnings for the quarter and the nine months were reasonably good as we continued to slog through a difficult environment. Our loan pipeline appears strong, but in more and more cases we are finding serious problems during the underwriting process where the potential borrower is in default or on the edge of default with other lenders. As a result, and with payoffs in the Greater Atlantic FDIC covered portfolio, loan growth has slowed.
Net Interest Income
Net interest income was $6.1 million in the quarter ended September 30, 2010 up from $4.0 million during the same period last year. The accretion of the discount on Greater Atlantic Bank's loans contributed $604 thousand to third quarter net interest income. Sonabank's net interest margin was 4.38% in the third quarter, down from 4.70% in the second quarter of 2010. This decline is attributable to repricing of loans that had fixed rates which expired and converted to floating rates during the third quarter of 2010. The net interest margin was 3.89% during the third quarter of last year.Net interest income was $18.8 million during the nine months ended September 30, 2010, compared to $10.5 million during the comparable period in the prior year. Average loans during the first nine months of 2010 were $462.5 million compared to $321.5 million during the same period last year. The Greater Atlantic Bank loan discount accretion contributed $2.1 million during the first nine months of 2010.