Southern National Bancorp of Virginia In (SONA, Financial) filed Quarterly Report for the period ended 2009-06-30.
Headquartered in Charlottesville Virginia Sonabank is a new regional bank founded by an experienced banking team with close to hundred years of banking experience. They offer a full line of products and services for personal and business banking. Sonabank specializes in small to medium sized business banking. They have extensive experience in Small Business Administration loans as well as other types of financing suited for businesses. Southern National Bancorp of Virginia In has a market cap of $55.8 million; its shares were traded at around $8.215 with a P/E ratio of 164.3 and P/S ratio of 2.3.
Net interest income for the three months ended June 30, 2009 was $3.5 million compared to $2.9 million for the same period last year. Average interest-earning assets for the three months ended June 30, 2009 increased $30.5 million over the same period in 2008. Average loans outstanding increased by $38.1 million in the second quarter of 2009 compared to the second quarter of 2008. Average investment securities decreased by $14.4 million in the quarter ended June 30, 2009, compared to the same period last year. The average balance of other earning assets, primarily interest-earning accounts at the Federal Reserve Bank of Richmond (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), increased from $7.6 million during the second quarter of 2008 to $14.5 million during the second quarter of 2009. The average yield on interest-earning assets decreased from 6.40% in 2008 to 5.60% in 2009 primarily because of the prime rate decreases of 400 basis points during 2008 which accompanied the Federal Reserve Boards reductions in its federal funds target rate. Average interest-bearing liabilities for the three months ended June 30, 2009 increased $29.7 million compared to the same period in 2008. Average interest-bearing deposits increased by $26.0 million, while average borrowings increased by $3.8 million compared to the second quarter of 2008. The average cost of interest-bearing liabilities decreased from 3.78% in 2008 to 2.44% in 2009. The interest rate spread for the three months ended June 30, 2009 increased from 2.62% to 3.16% compared to the same period last year. The net interest margin for the three months ended June 30, 2009 increased to 3.51% from 3.20% compared to the same period last year.
Net interest income for the six months ended June 30, 2009 was $6.5 million compared to $6.2 million for the same period last year. Average interest-earning assets for the six months ended June 30, 2009 increased $36.4 million over the same period in 2008. Average loans outstanding increased by $38.2 million in the first six months of 2009 compared to the same period in 2008. Average investment securities decreased by $11.5 million in the six months ended June 30, 2009, compared to the same period last year. The average balance of other earning assets, primarily
interest-earning accounts at the Federal Reserve Bank of Richmond (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), increased from $6.8 million during the first six months of 2008 to $16.5 million during the first six months of 2009. The average yield on interest-earning assets decreased from 6.84% in 2008 to 5.58% in 2009 primarily because of the prime rate decreases of 400 basis points during 2008 which accompanied the Federal Reserve Boards reductions in its federal funds target rate. Average interest-bearing liabilities for the six months ended June 30, 2009 increased $34.7 million compared to the same period in 2008. Average interest-bearing deposits increased by $29.4 million, while average borrowings increased by $5.3 million compared to the first six months of 2008. The average cost of interest-bearing liabilities decreased from 4.03% in 2008 to 2.64% in 2009. The interest rate spread for the six months ended June 30, 2009 increased from 2.82% to 2.94% compared to the same period last year. The net interest margin for the six months ended June 30, 2009 decreased to 3.32% from 3.43% compared to the same period last year.
Our commercial loans (non-real estate), acquisition and development loans, construction loans and SBA loans are predominately priced to a spread over the prime rate, and these loans reprice virtually immediately. Commercial real estate loans are generally priced at a spread over the one, three or five year constant maturity treasury yield (CMT) or our marginal cost of funds and fixed for one, three or five years. On the liability side of the balance sheet we have a large segment of our funding which floats; but certificates of deposit (CDs) reprice only at maturity resulting in a lag which can adversely affect net interest income and the net interest margin when interest rates decline. We have seen substantial improvements during the first six months of 2009. We had CDs mature during the first six months in an amount of $133.0 million with a weighted average rate of 3.31%. During the same period we issued $144.2 million in new CDs at an average rate of 1.40%.
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Headquartered in Charlottesville Virginia Sonabank is a new regional bank founded by an experienced banking team with close to hundred years of banking experience. They offer a full line of products and services for personal and business banking. Sonabank specializes in small to medium sized business banking. They have extensive experience in Small Business Administration loans as well as other types of financing suited for businesses. Southern National Bancorp of Virginia In has a market cap of $55.8 million; its shares were traded at around $8.215 with a P/E ratio of 164.3 and P/S ratio of 2.3.
Highlight of Business Operations:
Net income for the quarter ended June 30, 2009 was $23 thousand and $549 thousand for the six months ended June 30, 2009 compared to $450 thousand and $951 thousand during the second quarter and the first six months of 2008. Earnings were adversely impacted by OTTI charges of $863 thousand before tax on three of our trust preferred securities which experienced significant incremental deferrals during the quarter. Earnings for the second quarter and the six months were also adversely impacted by the FDIC special assessment of $190 thousand before tax as well as increases in the regular assessment which amounted to $123 thousand during the second quarter of 2009 compared to $50 thousand during the second quarter of 2008.Net interest income for the three months ended June 30, 2009 was $3.5 million compared to $2.9 million for the same period last year. Average interest-earning assets for the three months ended June 30, 2009 increased $30.5 million over the same period in 2008. Average loans outstanding increased by $38.1 million in the second quarter of 2009 compared to the second quarter of 2008. Average investment securities decreased by $14.4 million in the quarter ended June 30, 2009, compared to the same period last year. The average balance of other earning assets, primarily interest-earning accounts at the Federal Reserve Bank of Richmond (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), increased from $7.6 million during the second quarter of 2008 to $14.5 million during the second quarter of 2009. The average yield on interest-earning assets decreased from 6.40% in 2008 to 5.60% in 2009 primarily because of the prime rate decreases of 400 basis points during 2008 which accompanied the Federal Reserve Boards reductions in its federal funds target rate. Average interest-bearing liabilities for the three months ended June 30, 2009 increased $29.7 million compared to the same period in 2008. Average interest-bearing deposits increased by $26.0 million, while average borrowings increased by $3.8 million compared to the second quarter of 2008. The average cost of interest-bearing liabilities decreased from 3.78% in 2008 to 2.44% in 2009. The interest rate spread for the three months ended June 30, 2009 increased from 2.62% to 3.16% compared to the same period last year. The net interest margin for the three months ended June 30, 2009 increased to 3.51% from 3.20% compared to the same period last year.
Net interest income for the six months ended June 30, 2009 was $6.5 million compared to $6.2 million for the same period last year. Average interest-earning assets for the six months ended June 30, 2009 increased $36.4 million over the same period in 2008. Average loans outstanding increased by $38.2 million in the first six months of 2009 compared to the same period in 2008. Average investment securities decreased by $11.5 million in the six months ended June 30, 2009, compared to the same period last year. The average balance of other earning assets, primarily
interest-earning accounts at the Federal Reserve Bank of Richmond (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), increased from $6.8 million during the first six months of 2008 to $16.5 million during the first six months of 2009. The average yield on interest-earning assets decreased from 6.84% in 2008 to 5.58% in 2009 primarily because of the prime rate decreases of 400 basis points during 2008 which accompanied the Federal Reserve Boards reductions in its federal funds target rate. Average interest-bearing liabilities for the six months ended June 30, 2009 increased $34.7 million compared to the same period in 2008. Average interest-bearing deposits increased by $29.4 million, while average borrowings increased by $5.3 million compared to the first six months of 2008. The average cost of interest-bearing liabilities decreased from 4.03% in 2008 to 2.64% in 2009. The interest rate spread for the six months ended June 30, 2009 increased from 2.82% to 2.94% compared to the same period last year. The net interest margin for the six months ended June 30, 2009 decreased to 3.32% from 3.43% compared to the same period last year.
Our commercial loans (non-real estate), acquisition and development loans, construction loans and SBA loans are predominately priced to a spread over the prime rate, and these loans reprice virtually immediately. Commercial real estate loans are generally priced at a spread over the one, three or five year constant maturity treasury yield (CMT) or our marginal cost of funds and fixed for one, three or five years. On the liability side of the balance sheet we have a large segment of our funding which floats; but certificates of deposit (CDs) reprice only at maturity resulting in a lag which can adversely affect net interest income and the net interest margin when interest rates decline. We have seen substantial improvements during the first six months of 2009. We had CDs mature during the first six months in an amount of $133.0 million with a weighted average rate of 3.31%. During the same period we issued $144.2 million in new CDs at an average rate of 1.40%.
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