Primis Financial (FRST) 8-K/A Results of Operations and Financial Condition

Exhibit 99.1

Southern National Bancorp of Virginia, Inc.

McLean, Virginia

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands)	September 30, 2009			December 31, 2008
Assets
Cash and cash equivalents	$	17,056		$	14,762
Investment securities-available for sale		5,133			15,633
Investment securities-held to maturity		51,654			59,326
Stock in Federal Reserve Bank and Federal Home Loan Bank		4,427			4,041
Loans receivable, net of unearned income		346,232			302,266
Allowance for loan losses		(4,871	)		(4,218	)
Net loans		341,361			298,048
Intangible assets		11,552			11,854
Bank premises and equipment, net		3,328			3,598
Bank-owned life insurance		13,867			13,435
Other assets		13,628			11,227
Total assets	$	462,006		$	431,924
Liabilities and stockholders’ equity
Noninterest-bearing deposits	$	27,592		$	23,219
Interest-bearing deposits		313,096			286,241
Securities sold under agreements to repurchase and other short-term borrowings		23,001			20,890
Federal Home Loan Bank advances		30,000			30,000
Other liabilities		1,986			2,798
Total liabilities		395,675			363,148
Stockholders’ equity		66,331			68,776
Total liabilities and stockholders’ equity	$	462,006		$	431,924

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands)	For the Quarters Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
Interest and dividend income	$	5,778		$	6,039		$	16,775		$	18,315
Interest expense		1,827			2,989			6,288			9,114
Net interest income		3,951			3,050			10,487			9,201
Provision for loan losses		1,178			500			2,203			1,207
Net interest income after provision for loan losses		2,773			2,550			8,284			7,994
Account maintenance and deposit service fees		171			133			441			367
Income from bank-owned life insurance		144			148			432			438
Gain on sale of loans		155			107			155			107
Net gain (loss) on other assets		479			39			596			(136	)
Net impairment losses recognized in earnings		(1,213	)		(1,345	)		(2,076	)		(1,469	)
Gain on sale of securities		148			111			371			111
Other		24			31			81			73
Noninterest income (loss)		(92	)		(776	)		—			(509	)
Salaries and benefits		1,098			1,045			3,097			2,963
Occupancy expenses		515			507			1,535			1,475
FDIC assessments		151			54			448			153
FDIC special assessment		—			—			190			—
Other		850			694			2,251			2,142
Noninterest expense		2,614			2,300			7,521			6,733
Income (loss) before income taxes		67			(526	)		763			752
Income tax expense (benefit)		(21	)		231			126			558
Net income (loss)	$	88		$	(757	)	$	637		$	194

Financial Highlights

(Unaudited)

(Dollars in thousands except per share data)	For the Quarters Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
Per Share Data:
Earnings per share - Basic	$	0.01		$	(0.11	)	$	0.09		$	0.03
Earnings per share - Diluted	$	0.01		$	(0.11	)	$	0.09		$	0.03
Book value per share							$	9.76		$	9.95
Weighted average shares outstanding - Basic		6,798,547			6,798,547			6,798,547			6,798,547
Weighted average shares outstanding - Diluted		6,800,126			6,798,547			6,798,547			6,798,547
Shares outstanding at end of period								6,798,547			6,798,547
Selected Performance Ratios and Other Data:
Return on average assets		0.08	%		-0.71	%		0.20	%		0.06	%
Return on average equity		0.51	%		-4.37	%		1.23	%		0.37	%
Yield on earning assets		5.69	%		6.17	%		5.62	%		6.61	%
Cost of funds		2.08	%		3.54	%		2.45	%		3.85	%
Cost of funds including non-interest bearing deposits		1.96	%		3.35	%		2.30	%		3.63	%
Net interest margin		3.89	%		3.12	%		3.51	%		3.32	%
Efficiency ratio (1)		60.93	%		68.41	%		65.47	%		66.80	%
Net charge-offs (recoveries) to average loans		0.26	%		0.13	%		0.48	%		0.20	%
Amortization of intangibles	$	182		$	182		$	545		$	545

	As of
	September 30, 2009			December 31, 2008
Nonaccrual loans	$	2,913		$	1,078
Loans past due 90 days and accruing interest		—			135
Other real estate owned		3,744			3,434
Total nonperforming assets	$	6,657		$	4,647
Allowance for loan losses to total loans		1.41	%		1.40	%
Nonperforming assets to total assets		1.44	%		1.08	%
Nonperforming assets to total loans		1.92	%		1.54	%
Stockholders’ equity to total assets		14.36	%		15.92	%
Tier 1 risk-based captial ratio		14.87	%		17.46	%
Intangible assets:
Goodwill	$	8,713		$	8,713
Core deposit intangible		2,839			3,141
Total	$	11,552		$	11,854

(1) Excludes gains and write-downs on OREO, gains on sale of loans, gains/losses on sale of securities and impairment losses recognized in earnings.

Securities Portfolio Overview

At the end of the second quarter of 2009, management’s analysis deemed three of the ten securities owned were other than temporarily impaired. The cash flow analysis in the second quarter indicated that one security, ALESCO XV C1 would probably experience significant credit losses. Two others, ALESCO V C1 and ALESCO XVI C, would probably experience minor credit losses. Southern National booked second quarter OTTI charges accordingly. In the third quarter of 2009 analysis indicated that Southern National would incur OTTI charges on three additional securities: MMC Funding XVIII, TRAP 2007 – XIII D and TPREF Funding II and additional OTTI charges on three other securities: ALESCO V C1, ALESCO XV C1 and ALESCO XVI C.

As of September 30, 2009, the results were as follows (in thousands):

Security	Tranche Level	Ratings When Purchased		Current Ratings		Par Value		Book Value		Estimated Fair Value		Current Defaults and Deferrals (4)		% of Current Defaults and Deferrals to Current Collateral		Sandler O'Neill (a) Sterne Agee (b) Estimated Incremental Defaults Required to Break Yield (1)			Previously Recognized Cumulative Other Comprehensive Loss (2)
		Moody's	Fitch	Moody's	Fitch
						(in thousands)
Investment Grade:
ALESCO VII A1B	Senior	Aaa	AAA	A3	AA	$	8,792	$	7,802	$	6,506	$	132,556	21	%	$	288,348	b	$	332
MMCF II B	Senior Sub	A3	AA-	Baa2	BBB		583		533		484		34,000	26	%		16,900	a		50
MMCF III B	Senior Sub	A3	A-	Baa3	B		709		692		369		10,000	8	%		30,200	a		17
							10,084		9,027		7,359								$	399
Other:
TRAP 2007-XII C1	Mezzanine	A3	A	Ca	CC		2,012		1,422		282		118,250	24	%		40,860	b	$	590
																			Cumulative Other Comprehensive Loss (3)		Previously Recognized OTTI Related to Credit Loss (3)		Current Quarter OTTI Related to Credit Loss (3)
Other Than Temporarily Impaired:
TPREF FUNDING II	Mezzanine	A1	A-	Caa3	CC		1,500		522		522		114,000	33	%		2,200	a	$	922	$	—	$	56
TRAP 2007-XIII D	Mezzanine	NR	A-	NR	C		2,023		142		142		158,250	21	%		—	b		1,800		—		81
MMC FUNDING XVIII	Mezzanine	A3	A-	Ca	C		1,025		99		99		100,500	30	%		—	a		605		—		321
ALESCO V C1	Mezzanine	A2	A	Ca	CC		2,000		534		534		70,942	21	%		—	b		1,273		3		191	(5)
ALESCO XV C1	Mezzanine	A3	A-	Ca	CC		3,032		212		212		180,250	27	%		—	b		1,577		799		444
ALESCO XVI C	Mezzanine	A3	A-	Ca	CC		2,021		424		424		126,250	25	%		—	b		1,416		61		120
							11,601		1,933		1,933								$	7,593	$	863	$	1,213
Total						$	23,697	$	12,382	$	9,574

(1) A break in yield for a given tranche means that defaults/deferrals have reached such a level that the tranche would not receive all of its contractual cash flows (principal and interest) by maturity (so not just a temporary interest shortfall, but an actual loss in yield on the investment). In other words, the magnitude of the defaults/deferrals has depleted all of the credit enhancement (excess interest and over-collateralization) beneath the given tranche. This represents additional defaults beyond those currently existing.

(2) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity

(3) Pre-tax

(4) Includes known defaults and deferrals at September 30, 2009. Subsequent to quarter end, we received notification of additional deferrals totaling $10.5 million, $5.5 million and $4.55 million on ALESCO V, ALESCO VII and ALESCO XV, respectively. The deferrals on ALESCO VII and ALESCO XV did not result in OTTI for the quarter.

(5) The deferral which resulted in the incremental OTTI occurred after September 30, 2009.