Southern National Bancorp of Virginia In (SONA, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $42.8 million; its shares were traded at around $6.3 with a P/E ratio of 33.1 and P/S ratio of 1.8.
Earnings were adversely impacted by OTTI charges of $1.2 million before tax on six of our trust preferred securities which experienced significant incremental deferrals during the third quarter of 2009. Earnings for the nine months ended September 30, 2009, were adversely impacted by OTTI charges of $2.1 million related to trust preferred securities. Earnings for the three and nine months ended September 30, 2008, were adversely impacted by OTTI charges on FHLMC preferred stock in the amounts of $1.3 million and $1.5 million, respectively.
Earnings for the nine months ended September 30, 2009 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 $448 thousand during the first nine months of 2009 compared to $153 thousand during the same period in 2008.
Net interest income for the three months ended September 30, 2009 was $4.0 million compared to $3.0 million for the same period last year. Average interest-earning assets for the three months ended September 30, 2009 increased $13.8 million over the same period in 2008. Average loans outstanding increased by $40.0 million in the third quarter of 2009 compared to the third quarter of 2008. Average investment securities decreased by $19.7 million in the quarter ended September 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), decreased from $19.1 million during the third quarter of 2008 to $12.7 million during the third quarter of 2009. The average yield on interest-earning assets decreased from 6.17% in 2008 to 5.69% 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 September 30, 2009 increased $12.4 million compared to the same period in 2008. Average interest-bearing deposits increased by $7.5 million, while average borrowings increased by $4.9 million compared to the third quarter of 2008. The average cost of interest-bearing liabilities decreased from 3.54% in 2008 to 2.08% in 2009. The interest rate spread for the three months ended September 30, 2009 increased from 2.62% to 3.61% compared to the same period last year. The net interest margin for the three months ended September 30, 2009 increased to 3.89% from 3.12% compared to the same period last year.
the improvement in the net interest margin is the reduction in balances held in interest-bearing accounts at the FRB and the FHLB. The average balance in those accounts during the third quarter of 2009 was $8.2 million compared to $10.1 during the second quarter of 2009. The yield on earning assets increased from 5.60% during the second quarter to 5.69% during the third quarter. As discussed below, we were able to reduce our cost of funds.
Net interest income for the nine months ended September 30, 2009 was $10.5 million compared to $9.2 million for the same period last year. Average interest-earning assets for the nine months ended September 30, 2009 increased $28.8 million over the same period in 2008. Average loans outstanding increased by $38.8 million in the first nine months of 2009 compared to the same period in 2008. Average investment securities decreased by $14.3 million in the nine months ended September 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 $10.9 million during the first nine months of 2008 to $15.2 million during the first nine months of 2009. The average yield on interest-earning assets decreased from 6.61% in 2008 to 5.62% 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 nine months ended September 30, 2009 increased $27.2 million compared to the same period in 2008. Average interest-bearing deposits increased by $22.0 million, while average borrowings increased by $5.2 million compared to the first nine months of 2008. The average cost of interest-bearing liabilities decreased from 3.85% in 2008 to 2.45% in 2009. The interest rate spread for the nine months ended September 30, 2009 increased from 2.75% to 3.17% compared to the same period last year. The net interest margin for the nine months ended September 30, 2009 increased to 3.51% from 3.32% compared to the same period last year.
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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 $42.8 million; its shares were traded at around $6.3 with a P/E ratio of 33.1 and P/S ratio of 1.8.
Highlight of Business Operations:
Net income for the quarter ended September 30, 2009 was $88 thousand and $637 thousand for the nine months ended September 30, 2009 compared to a loss of $757 thousand during the third quarter of 2008 and net income of $194 thousand during the first nine months of 2008.Earnings were adversely impacted by OTTI charges of $1.2 million before tax on six of our trust preferred securities which experienced significant incremental deferrals during the third quarter of 2009. Earnings for the nine months ended September 30, 2009, were adversely impacted by OTTI charges of $2.1 million related to trust preferred securities. Earnings for the three and nine months ended September 30, 2008, were adversely impacted by OTTI charges on FHLMC preferred stock in the amounts of $1.3 million and $1.5 million, respectively.
Earnings for the nine months ended September 30, 2009 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 $448 thousand during the first nine months of 2009 compared to $153 thousand during the same period in 2008.
Net interest income for the three months ended September 30, 2009 was $4.0 million compared to $3.0 million for the same period last year. Average interest-earning assets for the three months ended September 30, 2009 increased $13.8 million over the same period in 2008. Average loans outstanding increased by $40.0 million in the third quarter of 2009 compared to the third quarter of 2008. Average investment securities decreased by $19.7 million in the quarter ended September 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), decreased from $19.1 million during the third quarter of 2008 to $12.7 million during the third quarter of 2009. The average yield on interest-earning assets decreased from 6.17% in 2008 to 5.69% 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 September 30, 2009 increased $12.4 million compared to the same period in 2008. Average interest-bearing deposits increased by $7.5 million, while average borrowings increased by $4.9 million compared to the third quarter of 2008. The average cost of interest-bearing liabilities decreased from 3.54% in 2008 to 2.08% in 2009. The interest rate spread for the three months ended September 30, 2009 increased from 2.62% to 3.61% compared to the same period last year. The net interest margin for the three months ended September 30, 2009 increased to 3.89% from 3.12% compared to the same period last year.
the improvement in the net interest margin is the reduction in balances held in interest-bearing accounts at the FRB and the FHLB. The average balance in those accounts during the third quarter of 2009 was $8.2 million compared to $10.1 during the second quarter of 2009. The yield on earning assets increased from 5.60% during the second quarter to 5.69% during the third quarter. As discussed below, we were able to reduce our cost of funds.
Net interest income for the nine months ended September 30, 2009 was $10.5 million compared to $9.2 million for the same period last year. Average interest-earning assets for the nine months ended September 30, 2009 increased $28.8 million over the same period in 2008. Average loans outstanding increased by $38.8 million in the first nine months of 2009 compared to the same period in 2008. Average investment securities decreased by $14.3 million in the nine months ended September 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 $10.9 million during the first nine months of 2008 to $15.2 million during the first nine months of 2009. The average yield on interest-earning assets decreased from 6.61% in 2008 to 5.62% 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 nine months ended September 30, 2009 increased $27.2 million compared to the same period in 2008. Average interest-bearing deposits increased by $22.0 million, while average borrowings increased by $5.2 million compared to the first nine months of 2008. The average cost of interest-bearing liabilities decreased from 3.85% in 2008 to 2.45% in 2009. The interest rate spread for the nine months ended September 30, 2009 increased from 2.75% to 3.17% compared to the same period last year. The net interest margin for the nine months ended September 30, 2009 increased to 3.51% from 3.32% compared to the same period last year.
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