Primis Financial (FRST) 8-K Important Information Regarding This Presentation

October 2009

Presented By:

Southern National Bancorp of Virginia, Inc.

The Holding Company

For

Common Stock Offering

Exhibit 99.1

2

Southern National Bancorp of Virginia

IMPORTANT INFORMATION REGARDING THIS PRESENTATION

All information contained in this presentation is obtained from sources believed to be accurate and reliable.

However, such information is presented “as is” without warranty of any kind, and the company makes no

representation or warranty, express or implied, as to the accuracy, timeliness, or completeness of any such

information or with regard to the results to be obtained from its use. While the company has attempted to

make the information current at the time of its release, it may well be or become outdated, stale or otherwise

subject to a variety of legal qualifications by the time you actually read it. No representation is made that the

company will or is likely to achieve results comparable to those shown.

3

Southern National Bancorp of Virginia

FORWARD-LOOKING STATEMENTS

This presentation contains statements that constitute “forward-looking statements” within the meaning of the

Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation

Reform Act of 1995.  These forward-looking statements include, among others, the company’s statements

regarding (1) management’s expertise and ability, (2) estimated proceeds of the offering, (3) expectations that

capital raised in the offering will position the company to take advantage of market opportunities, (4) projected

demographic information, (5) the economic outlook in the company’s metropolitan statistical areas, (6) the

assumptions underlying the company’s expectations, (7) pro forma capital position and ratios following the

execution of the company’s capital plan, (8) the assumptions used in the company’s capital analysis, (9) market

valuation, (10) expectations regarding growth of the company, and (11) the company’s potential earnings. 

Prospective investors are cautioned that any such forward-looking statements speak only as of the date hereof

and are not guarantees of future performance and involve risks and uncertainties, and that actual results may

differ materially from those contemplated by such forward-looking statements.  A number of important factors

could cause actual results to differ materially from those contemplated by the forward-looking statements in this

presentation, including, without limitation, the risks, uncertainties and factors set forth in the company’s (i)

Registration Statement on Form S-1 filed with the SEC on October 14, 2009  and Amendment No. 1 to the 

Form S-1 Registration Statement filed on October 26, 2009, (ii) Annual Report on Form 10-K for the year ended

December 31, 2008, (iii) Quarterly Reports on Form 10-Q for the quarter ended June 30, 2009, (iv) Current

Reports on Form 8-K, and (v) other filings with the SEC.  Many of these factors are beyond the company’s

ability to control or predict.  The Company does not assume any obligation to update any forward-looking

statements as a result of new information, future developments or otherwise.  

4

Southern National Bancorp of Virginia

USE OF NON-GAAP FINANCIAL MEASURES

This presentation contains certain non-GAAP financial measures determined by methods other than in

accordance

with

U.S.

generally

accepted

accounting

principles.

Such

non-GAAP

financial

measures

may

include the following, amongst others: pre-tax, pre-provision return on average assets; and pro forma tangible

common

equity

to

tangible

assets

ratio.

The

most

comparable

GAAP

measures

to

these

measures

are

net

income and the ratio

of

total

equity

to

total

assets,

respectively.

The

company

believes

that

these

non-

GAAP

financial measures provide meaningful additional information about the company to assist investors in

evaluating the company’s operating results, financial strength and capitalization. These non-GAAP financial

measures should not be considered as a substitute for operating results determined in accordance with GAAP

and may not be comparable to other similarly titled measures of other companies. The computations of the

non-GAAP financial measures used in this presentation are set forth in Appendix A to this presentation.

The company has filed a registration statement (including a prospectus) with the SEC for the offering to

which this communication relates. Before you invest, you should read the prospectus in that registration

statement

and

other

documents

the

company

has

filed

with

the

SEC

for

more

complete

information

about

the company and this offering. You may get these documents for free by visiting EDGAR on the SEC Web

site at www.sec.gov. Alternatively, the issuer, the underwriter or any dealer participating in the offering will

arrange to send you the prospectus if you request it from FIG Partners, LLC, Capital Markets Department,

Attention Greg Gersack, 1175 Peachtree Street NE, 100 Colony Square, Suite 2250 Atlanta, GA 30361 or at

404-601-7241.

5

Southern National Bancorp of Virginia

Offering Term Summary

Offering Term Summary

Issuer:

Southern National Bancorp of Virginia, Inc.

Ticker / Exchange:

SONA / NASDAQ

Type of Security:

Common Stock

Trading Price:

$7.30 as of 10/22/2009

Pre-Offering Shares Outstanding:

6,798,547

as of 10/22/2009

Transaction Size:

$25 million (excluding over-allotment option)

Over-Allotment Option:

15%

Expected Pricing:

October 29, 2009

Use of Proceeds:

1) To provide capital to Sonabank to support its

anticipated organic growth;

2) To support potential future acquisitions of

branches or whole banks, including possible

acquisitions of failed financial institutions in

FDIC assisted transactions; and

3) For other general corporate purposes.

Sole Book Running Manager:

FIG Partners LLC

6

Southern National Bancorp of Virginia

Company Summary

Company Summary

Southern National is the holding company for the $462-million-asset Sonabank (as of

September 30, 2009), headquartered in McLean, Virginia, which opened for business in

2005. Southern National exceeded $400 million in assets in 4 years by utilizing a balanced

mixture of organic growth and selected acquisitions.

Southern National now operates 9 full service branches, all in the Commonwealth of

Virginia – 2 in Warrenton, 2 in Leesburg, and 1 each in Charlottesville, McLean, Fairfax,

Reston, and Clifton Forge.

Experienced management team – The executive officers of Southern National/Sonabank

have worked together for more than 20 years. The team previously ran Southern Financial

Bancorp, the publicly traded holding company of Southern Financial Bank. Southern

Financial had $1.5 billion in assets and operated 34 full-service banking offices at the time

of its sale to Provident Bancshares in 2004.

Southern National has the expertise and capability to select, acquire and integrate banks

and bank branches and has a proven track record in doing so. The company has completed

one whole bank acquisition, two separate bank branch acquisitions and the purchase of 

certain assets and liabilities associated with its Leesburg location.

Small business oriented, relationship-based loan portfolio.  Southern National is one of the

leading SBA lenders in the Washington, DC and Richmond districts.

7

Southern National Bancorp of Virginia

Offering Rationale:

Offering Rationale:

Position The Company To Take Advantage Of Market Opportunities

Position The Company To Take Advantage Of Market Opportunities

The capital raised in the offering will:

Strengthen the capital position of the company.

Support the expected organic growth of the company and allow it to take advantage of

opportunities created due to the credit climate.

Support future acquisition opportunities of whole banks, bank branches, and/or FDIC

assisted transactions.

Solidify the company’s position in the community and will help bring additional business

to the bank.

Allow the company to further leverage its management experience.

8

Southern National Bancorp of Virginia

Management Team

Management Team

Georgia S. Derrico, Chairman & Chief Executive Officer

Georgia S. Derrico is the Chairman of the Board and Chief Executive Officer of Southern National and Sonabank. Prior to co-

founding Southern National in July 2004, she was the Chairman of the Board and Chief Executive Officer of Southern Financial

Bancorp, Inc. from 1986 until April 2004. Southern Financial Bancorp, Inc. was the Nasdaq National Market System-listed bank

holding company for the $1.5 billion (assets) Southern Financial Bank, Warrenton, Virginia, which was acquired by Provident

Bankshares, Inc. in April 2004. She founded Southern Financial Bank in 1986. Prior to that, she served as Senior Vice President,

Chief Administrative and Credit Officer of the Multinational Division of Chemical Bank in New York City. She also served at

Chemical Bank as the Vice President and District Head of the Mid-Atlantic region of the United States for the Corporate Banking

Division. From 1993 to 2004, Ms. Derrico was a director of Oneida, Ltd. She is the wife of Mr. R. Roderick Porter.

R. Roderick Porter, President & Chief Operating Officer

R. Roderick Porter is the President of Southern National and Sonabank. Prior to co-founding Southern National in July 2004, he was

the President and Chief Operating Officer of Southern Financial Bancorp, Inc. from April 1998 until April 2004. From 1994 to 1998,

he was President of FX Concepts, Ltd., an international money management firm located in New York City. Prior to that, he served as

a Principal of Morgan Stanley. Mr. Porter spent 15 years at Chemical Bank, including as a Senior Vice President in Chemical Bank’s

treasury department where he was responsible for asset/liability management, the U.S. government and municipal securities portfolio,

all U.S. dollar-denominated funding for the bank and the holding company, money market trading and the discount brokerage

operation. Prior experience at Chemical Bank included tours as Vice President and General Manager for northern Europe, based in

London, and for Chemical Japan, based in Tokyo. Mr. Porter is the husband of Ms. Georgia S. Derrico.

William H. Lagos, Senior Vice President & Chief Financial Officer

William H. Lagos is a Senior Vice President and Chief Financial Officer of Southern National and Sonabank. From 1986 until April

2004, he served as Senior Vice President and Controller of Southern Financial Bank, the operating subsidiary of Southern Financial

Bancorp, Inc., which was acquired by Provident Bankshares, Inc. in April 2004. Mr. Lagos participated in Southern National’s

organization commencing in November 2004.

9

Southern National Bancorp of Virginia

Southern National Branches

Southern National Branches

(1)

Bank

level

deposit

information

includes

a

Holding

Company

account

of

$2.3

million

that

is

eliminated

in

consolidated

financials.

(2)

Includes

$77.9

million

of

brokered

CDs

in

Charlottesville

branch

and

$27.0

million

in

brokered

MMDAs

in

McLean

branch.

(3)

Branch

acquired

from

Millennium

Bankshares,

Inc.

on

September

28, 2009.

Source:

FIG

Partners,

Southern

National,

SNL

Financial

LLC,

2009

FDIC

Summary

of

Deposits.

Address

City

Zip

6/30/09 Bank

Level

Deposits

($000)

(1)

1770 Timberwood

Blvd # 100

Charlottesville

22911-7501

110,152

(2)

6830 Old Dominion Dr

McLean

22101-6035

76,644

(2)

511 Main St

Clifton Forge

24422-1166

47,813

11A Main St

Warrenton

20186-3419

NA

(3)

11527 Sunrise Valley Dr

Reston

20191

25,967

1 E Market St

Leesburg

20176-3014

21,948

550 Broadview Ave

Warrenton

20186-2036

19,815

10855 Fairfax Blvd

Fairfax

22030-4300

14,980

10 W Market St

Leesburg

20176-2805

Drive -thru

10

Southern National Bancorp of Virginia

Summary

Summary

Demographic

Demographic

Information

Information

–

–

By

By

MSA/County

MSA/County

Summary

Summary

Demographic

Demographic

Information

Information

–

–

By

By

Zip

Zip

Code

Code

Zip Code

Sonabank

Branches

Total

Population

2009      

Population

Change 2000-

2009

(%)

Projected

Population

Change 2009-

2014 (%)

Total

Households

2009

Median

Household

Income 2009

($)

Household

Income Change

2000-2009 (%)

Projected

Household

Income Change

2009-2014 (%)

Per Capita

Income 2009

($)

20176

2

42,210

117.03

26.86

15,278

108,437

52.38

6.47

49,377

20186

2

14,902

31.61

9.99

5,634

80,174

31.16

5.90

35,096

20191

1

28,623

(0.89)

(0.79)

11,330

105,930

34.38

5.22

52,020

22030

1

48,425

22.89

7.78

16,957

106,727

36.78

4.83

46,854

22101

1

28,014

(0.08)

0.04

10,542

159,200

27.63

6.26

79,494

22911

1

16,050

32.13

11.03

5,995

77,920

25.89

2.55

34,630

24422

1

6,970

(4.79)

(1.92)

3,016

38,645

27.62

4.79

20,456

Sonabank Footprint

9

185,194

28.27

7.57

68,752

96,719

33.69

5.15

45,418

State of Virginia

9

7,895,075

11.54

4.74

3,032,884

61,855

32.37

5.01

30,912

US

9

309,731,508

10.06

4.63

116,523,156

54,719

29.78

4.06

27,277

Source: FIG Partners, SNL Financial LLC, ESRI, US Census Data.

MSA

Market 

Rank

Number

of

Branches

Total

Population

2009       

Population

Change 2000

2009

(%)

Projected

Population

Change 2009-2014

(%)

Median

Household

Income 2009

($)

Household

Income

Change 2000-

2009 (%)

Projected

Household

Income Change

2009-2014 (%)

Charlottesville MSA

7

1

197,869

13.70

5.79

57,140

30.69

6.85

Washington-Arlington-Alexandria, DC-VA-MD-WV

50

7

5,448,329

13.60

5.21

82,080

30.35

3.41

Alleghany County

2

1

16,886

(1.91)

(1.12)

44,386

25.82

4.52

Sonabank Footprint

9

5,663,084

11.87

4.76

65,807

29.99

5.18

Virginia

48

9

7,895,075

11.54

4.74

61,855

32.37

5.01

Aggregate: National

309,731,508

10.06

4.63

54,719

29.78

4.06

11

Southern National Bancorp of Virginia

Economic Drivers

Economic Drivers

Washington MSA:

Stable

and

diverse

economy;

primary

economic

driver

is

the

federal

government

and

the

numerous

government

agencies

and

government

contractors located in the MSA.

Additionally,

many

trade

unions,

non-profit

organizations,

law

firms,

and

lobbying firms are headquartered in the Washington DC area.

Low

unemployment

rate

of

6%,

significantly

below

the

national

average

of 9.7%.

One

of

top

10

most

populous

MSAs

in

the

nation

with

a

population

of

5.4

million (2009 estimate).

Source: FIG Partners, SNL Financial LLC, ESRI, US Census Data.

12

Southern National Bancorp of Virginia

Economic Drivers

Economic Drivers

Charlottesville MSA:

University of Virginia is the major economic driver for the area. UV’s

payroll exceeds 20,000 people and the student population is 24,500.

A variety of commercial and non-profit enterprises and the presence of the

federal government are also vital for the local economy.

Very low unemployment rate of 5.6%, significantly below the national

average.

Population of 197,869.

Alleghany County:

The major economic driver for the area is a paper processing plant

operated

by

MeadWestvaco.

The

plant

is

also

the

biggest

employer

in

the

area.

Population of the county is 16,886.

The unemployment rate is 8.8%, which, while higher than the other two

Southern National markets, is still below the national average.

Source: FIG Partners, SNL Financial LLC, ESRI, US Census Data.

13

Southern National Bancorp of Virginia

52.2%

49.4%

43.3%

3.5-Year CAGR (2005-2Q09):

Southern

Southern

National

National

Has

Has

Demonstrated

Demonstrated

An

An

Ability

Ability

To

To

Generate

Generate

Growth

Growth

Over

Over

The Past 3.5 Years

The Past 3.5 Years

Source: FIG Partners, SNL Financial LLC, Company Filings.

$74

$77

$123

$202

$216

$291

$258

$265

$377

$298

$309

$432

$322

$315

$433

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2005

2006

2007

2008

2Q09

Net

Loans

Total Deposits

Total Assets

14

Southern National Bancorp of Virginia

Loan Portfolio Mix

Loan Portfolio Mix

Note: The chart does not exclude 0.17% of unearned interest.

Source: FIG Partners, SNL Financial LLC, Regulatory Filings.

Residential Constr

& Dev, 6.3%

Other Constr &

Dev, 7.8%

1-4 Family,

23.1%

Multifamily, 2.3%

Owner Occupied

CRE, 21.4%

Non-Owner

Occupied

CRE, 15.7%

C&I, 20.8%

Consumer, 1.0%

Farm, 1.9%

Sonabank Loan Portfolio Composition

June 30, 2009

15

Southern National Bancorp of Virginia

SBA Rankings

SBA Rankings

SBA Loans Statitistics - 10/01/2008 to 09/30/2009

SBA Loans Statitistics - 10/01/2008 to 09/30/2009

Ranking by Loan Volume

Ranking by Loan Volume

Rank

Lender

Loans

Amount ($)

Rank

Lender

Loans

Amount ($)

1

Branch Banking & Trust (BB&T)

73

$14,448,500

1

Branch Banking & Trust (BB&T)

89

$17,624,900

2

Business Finance Group

65

$45,114,000

2

Superior Financial Group, Llc

85

$825,000

3

M & T Bank

42

$3,380,000

3

Suntrust Bank

52

$4,997,600

4

Superior Financial Group, Llc

41

$420,000

4

Sonabank N.A.

32

$12,599,400

5

Suntrust Bank

24

$3,647,800

5

StellarOne Bank

29

$4,201,800

6

Access National Bank

23

$10,143,000

6

Borrego Spring Bank, N.A.

24

$795,000

7

Sandy Spring Bank

19

$3,235,000

7

Bank of the Commonwealth

22

$5,254,700

8

United Central Bank

18

$3,746,500

8

Wachovia Bank

15

$9,673,700

9

Innovative Bank

17

$425,000

9

Manufacturers & Traders Trtust Co.

14

$2,586,500

10

Sonabank N.A.

16

$4,633,000

10

Virginia Company Bank

14

$921,500

Ranking by Total Dollar Amount

Ranking by Total Dollar Amount

Rank

Lender

Loans

Amount ($)

Rank

Lender

Loans

Amount ($)

1

Business Finance Group

65

$45,114,000

1

Branch Banking & Trust (BB&T)

89

$17,624,900

2

Branch Banking & Trust (BB&T)

73

$14,448,500

2

Sonabank N.A.

32

$12,599,400

3

Access National Bank

23

$10,143,000

3

Wachovia Bank

15

$9,673,700

4

Sonabank N.A.

16

$4,633,000

4

Townebank

11

$6,605,000

5

Wilshire State Bank

10

$4,360,800

5

Excel National Bank

6

$6,047,800

6

Compass Bank

5

$3,774,500

6

Bank of the Commonwealth

22

$5,254,700

7

United Central Bank

18

$3,746,500

7

Wells Fargo Bank, N.A.

9

$5,233,500

8

Suntrust Bank

24

$3,647,800

8

Suntrust Bank

52

$4,997,600

9

M & T Bank

42

$3,380,000

9

Union Bank and Trust Company

13

$4,535,000

10

Chesapeake Business Fin. Corp

2

$3,250,000

10

StellarOne Bank

29

$4,201,800

Community Banks Ranking

Community Banks Ranking

Rank

Lender

Loans

Amount ($)

Rank

Lender

Loans

Amount ($)

1

Access National Bank

23

$10,143,000

1

Sonabank N.A.

32

$12,599,400

2

Sonabank N.A.

16

$4,633,000

2

Borrego Spring Bank, N.A.

24

$795,000

3

Cardinal Bank, N.A.

5

$975,000

3

Virginia Company Bank

14

$921,500

4

Virginia Commerce Bank

3

$830,000

4

Surrey Bank & Trust

3

$422,700

5

Capital Bank, N.A.

3

$820,000

5

Heritage Bank & Trust

8

$1,090,000

Washington, DC District

Richmond, VA District

Source: FIG Partners, U.S. Small Business Administration.

16

Southern National Bancorp of Virginia

Credit Quality Details

Credit Quality Details

Source: FIG Partners, SNL Financial LLC, Company Filings.

2005 Y

2006 Y

2007 Y

2008 Y

1Q09

2Q09

Nonperforming Assets ($000)

Nonaccrual Loans

0

0

371

1,078

1,190

2,244

90+ Days Delinquent

0

0

0

135

0

0

OREO

0

0

3,648

3,434

3,476

3,415

Nonperforming Assets

0

0

4,019

4,647

4,666

5,659

Loan Loss Reserve ($000)

Loan Loss Reserve -

Beginning

0

1,020

2,726

3,476

4,218

4,460

Net Charge-offs

0

214

540

915

238

434

Provision

1,020

546

1,290

1,657

480

545

Acquired

0

1,374

0

0

0

0

Loan Loss Reserve -

Ending

1,020

2,726

3,476

4,218

4,460

4,571

Asset Quality Ratios (%)

NPAs/ Assets

0.00

0.00

1.07

1.08

1.09

1.31

NPAs/ Loans & OREO

0.00

0.00

1.52

1.52

1.45

1.72

NPLs/ Loans

0.00

0.00

0.14

0.40

0.37

0.69

Reserves/ NPLs

NM

NM

936.93

347.73

374.79

203.70

Reserves/ Gross Loans

1.36

1.33

1.33

1.40

1.40

1.40

Reserves/ NPAs

NM

NM

86.49

90.77

95.59

80.77

NCOs/ Avg

Loans

0.00

0.21

0.24

0.32

0.31

0.54

Loan Loss Provision/ NCO

NM

255.14

238.89

181.09

201.68

125.58

17

Southern National Bancorp of Virginia

Credit

Credit

Quality

Quality

–

–

Southern

Southern

National

National

Vs.

Vs.

Peers

Peers

Peer group includes all public banks and thrifts in Virginia and the Washington-Arlington-Alexandria MSA with assets between $200 million and $2

billion – ANCX, ABVA, BHRB, CFNL, EFSI, FBSS, GAFC, MNSB, MBRG, MBVA, UFBC, VCBI, VBGK, and WFBI.

Source: FIG Partners, SNL Financial LLC, Company Filings. 

0.00%

0.00%

1.07%

1.08%

1.31%

0.10%

0.19%

0.74%

1.55%

2.10%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2005

2006

2007

2008

6/30/2009

NPAs / Assets

SONA

Peer Average

0.00%

0.21%

0.24%

0.32%

0.43%

0.04%

0.02%

0.14%

0.73%

0.86%

0.00%

0.21%

0.42%

0.63%

0.84%

1.05%

2005

2006

2007

2008

6/30/2009

Net Charge-offs / Average Loans

SONA

Peer Average

1.36%

1.33%

1.33%

1.40%

1.40%

1.06%

1.05%

1.19%

1.44%

1.42%

0.00%

0.50%

1.00%

1.50%

2.00%

2005

2006

2007

2008

6/30/2009

Reserves / Loans

SONA

Peer Average

18

Southern National Bancorp of Virginia

Deposit Portfolio Mix

Deposit Portfolio Mix

Non-interest bearing deposits represent 8.7% of total deposits*

Non-interest bearing deposits represent 8.7% of total deposits*

Source: FIG Partners, SNL Financial LLC, Regulatory Filings.

Demand,

8.7%*

NOW, 2.3%

Savings+

MMDAs, 8.1%

Brokered

MMDAs, 8.5%

Retail

CDs, 15.8%

Brokered

CDs, 24.5%

Jumbo

CDs, 32.1%

Sonabank

Deposit Composition

June 30, 2009

* Non-interest bearing deposits include Holding Company account comprising 0.7% of deposits.

19

Southern National Bancorp of Virginia

Securities Portfolio Overview

Securities Portfolio Overview

Sonabank owns a portfolio of trust preferred securities. These securities have been adversely

affected by the continued deterioration of some sectors of the banking system which have resulted

in increased deferrals and defaults in the underlying collateral. 

In performing a detailed cash flow analysis of each security, Sonabank works with independent

third parties to identify its best estimate of the cash flow estimated to be collected. If this estimate

results in a present value of expected cash flows that is less than the amortized cost basis of a

security (that is, credit loss exists), an OTTI is considered to have occurred. If there is no credit

loss, any impairment is considered temporary. The cash flow analysis performed by Sonabank

included the following assumptions:

  Assume that all of the issuers rated 1 by IDC Financial Publishing that have not already defaulted or deferred will

default or defer immediately with 100% loss, except for one issuer that has received TARP funding. On one

security, TPREF Funding II which has a minimal cushion, Sonabank assumed an additional $10 million in defaults

which results in an OTTI. 

  Assume that annual defaults for the remaining life of each security will be 37.5 basis points. According to FTN

Financial: “The FDIC lists the number of bank failures each year from 1934-2008. Comparing bank failures to the

number of FDIC institutions produces an annual average default rate of 36 basis points.”

  Assume recoveries ranging from 0% to 75% on deferrals after two years depending on the IDC rating of the

deferring entity.

  Assume no prepayments for 10 years and then 1% per annum for the remaining life of the security. According to

FTN Financial: “Prepayments were common in 2006 and 2007 when issuers were able to refinance into lower cost

borrowings. That was a much different environment than today and most parties expect prepayments to be very

low absent a change in credit conditions.” 

  Securities have been modeled using the above assumptions by Sandler O’Neill or Sterne Agee using the forward

LIBOR curve plus original spread to discount projected cash flows to present values.  

20

Southern National Bancorp of Virginia

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): 

Securities

Securities

Portfolio

Portfolio

Overview

Overview

–

–

cont.

cont.

Source:

Southern

National

3

rd

Quarter

Earnings

Release

10/20/09, as updated on 10/26/09.

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

Sandler O'Neill (a)

Sterne Agee (b)

Previously

% of Current

Estimated

Recognized

Defaults and

Incremental

Cumulative

Estimated

Current

Deferrals

Defaults

Other

Tranche

Fair

Defaults and

to Current

Required to

Comprehensive

Security

Level

Moody's

Fitch

Moody's

Fitch

Par Value

Book Value

Value

Deferrals (4)

Collateral

Break Yield (1)

Loss (2)

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

$                              

Previously

Current

Cumulative

Recognized

Quarter

Other Comprehensive

OTTI Related to

OTTI Related to

Other Than Temporarily Impaired:

Loss (3)

Credit Loss (3)

Credit Loss (3)

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

-

MMC FUNDING XVIII

Mezzanine

A3

A-

Ca

C

1,025

99

99

100,500

30%

-

a

605

-

ALESCO V C1

Mezzanine

A2

A

Ca

CC

2,000

534

534

70,942

21%

b

1,273

3

ALESCO XV C1

Mezzanine

A3

A-

Ca

CC

3,032

212

212

180,250

27%

-

b

1,577

799

ALESCO XVI  C

Mezzanine

A3

A-

Ca

CC

2,021

424

424

126,250

25%

-

b

1,416

61

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)

Ratings

When Purchased

Current Ratings

(in thousands)

81

321

444

120

191(5)

(4)

Includes

known

defaults

and

deferrals

at

September

30,

2009.

Subsequent

to

quarter

end,

we

received

notification

of

additional

deferrals

totalling

$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.

-

21

Southern National Bancorp of Virginia

Subsequent

to

the

Initial

Report

of

the

Company’s

3

quarter

earnings

on

October

20,

2009,

the

Company learned of additional deferrals made in the fourth quarter of 2009 on three of the trust

preferred securities it owns.

The deferral on one of the trust preferred securities resulted in an

additional other than temporary impairment charge of approximately $191,000 pre-tax ($126,000

after

tax)

for

the

three

months

ended

September

30,

2009,

and

an

aggregate

other

than

temporary

impairment charge of $1.2 million for the quarter.  Recently issued accounting standards (ASC

855-10) require the Company to consider events occurring after the reporting period up until the

time its financial statements are issued.  If such events provide evidence about a condition that

existed at the reporting period, it should be recorded in that period. Southern National evaluated

these new deferrals and determined that the additional charges should be recorded as of September

30, 2009 in accordance with this standard.

Securities

Securities

Portfolio

Portfolio

Overview

Overview

–

–

cont.

cont.

rd

22

Southern National Bancorp of Virginia

Net Income & Revenues

Net Income & Revenues

Note: Operating revenue refers to net interest income plus noninterest income.

Noninterest income excludes gain/loss on sale of securities and OTTI and OREO charges.

* 1Q09 & 2Q09 annualized

Source: FIG Partners, SNL Financial LLC, Company Filings.

-5,000

0

5,000

10,000

15,000

20,000

2005

2006

2007

2008

1Q09*

2Q09*

Operating Revenues

Net Income

23

Southern National Bancorp of Virginia

Solid Core Profitability

Solid Core Profitability

* See Pages 30-32 for non-GAAP reconciliation tables.

Note: Peer group includes all public banks and thrifts in Virginia and the Washington-Arlington-Alexandria MSA with assets between $200 million and

$2

billion

–

ANCX,

ABVA,

BHRB,

CFNL,

EFSI,

FBSS,

GAFC,

MNSB,

MBRG,

MBVA,

UFBC,

VCBI,

VBGK,

and

WFBI.

Source: FIG Partners, SNL Financial LLC, Company Fillings

-0.06%

1.01%

1.11%

1.07%

1.17%

1.27%

0.79%

0.57%

0.44%

0.57%

-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2005

2006

2007

2008

6/30/2009

Pre-Tax Pre-Provision ROAA *

SONA

Peer Average

24

Southern National Bancorp of Virginia

Operating Revenue Breakdown ($000)

Net Interest Margin (%)

Noninterest Income as % of Operating Revenue

2005       2006         2007        2008               1Q09*   

2Q09*     

2.8%      4.0%        6.8%       9.9%               8.5%      8.7%

Net Interest Margin And Operating Revenue Breakdown

Net Interest Margin And Operating Revenue Breakdown

Source: FIG Partners, SNL Financial LLC, Company Filings.

Note: Noninterest income excludes gain/loss on sale of securities and OTTI and

OREO charges.

* 1Q09 & 2Q09 annualized

4.01

3.65

3.26

3.12

3.51

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2006

2007

2008

1Q09

2Q09

25

Southern National Bancorp of Virginia

Strong Capital Ratios

Strong Capital Ratios

*See Pages 30-32 for non-GAAP reconciliation tables.

Peer

group

includes

all

public

banks

and

thrifts

in

Virginia

and

the

Washington-Arlington-Alexandria

MSA

with

assets

between

$200

million

and

$2

billion –

ANCX, ABVA, BHRB, CFNL, EFSI, FBSS, GAFC, MNSB, MBRG, MBVA, UFBC, VCBI, VBGK, and WFBI.

Source: FIG Partners, SNL Financial LLC, Company Filings.

35.38%

28.46%

16.03%

13.71%

14.04%

11.84%

11.97%

11.52%

10.05%

9.86%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2005

2006

2007

2008

6/30/2009

Tier 1 Leverage Ratio

SONA

Peer Average

33.96%

25.94%

19.63%

18.71%

16.30%

16.21%

17.26%

15.44%

13.05%

12.75%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2005

2006

2007

2008

6/30/2009

Total Risk-Based Capital Ratio

SONA

Peer Average

24.43%

19.31%

15.55%

13.55%

13.31%

9.50%

9.86%

9.72%

7.54%

6.95%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2005

2006

2007

2008

6/30/2009

Tangible Common Equity / Tangible Assets

SONA

Peer Average

6.95%

13.31%

12.16%

17.12%

0.00%

5.00%

10.00%

15.00%

20.00%

Peers 6/30/09

SONA 6/30/09

SONA 9/30/09

SONA 9/30/09 Pro

Forma

Pro Forma Tangible Common Equity / Tangible Assets *

26

Southern National Bancorp of Virginia

Third Quarter Update

Third Quarter Update

Southern National reported 3Q09 net income of $88 thousand.

Net Interest Margin expanded to 3.89%, up 38bps from the 3.51% in 2Q09.

Net Interest Income for the quarter was $3.95 million, an increase of 13.2% over the

preceding quarter.

Credit

quality

remains

stable

–

Nonperforming

assets

(NPAs)

increased

to

$6.66

million,

up $1

million

from

the

preceding

quarter.

NPAs

as

a

percentage

of

assets

were

1.44%,

an

increase of 13bps from 1.31% in 2Q09. Net charge-offs were 0.26% of average loans vs.

0.16% in the second quarter. Provision for loan losses exceeded the net charge-offs by

$300 thousand and the allowance for loan losses increased to $4.87 million, or 1.41% of

loans.

The company recorded an OTTI charge of $1.21 million (pre-tax) on its trust preferred

securities portfolio due to continued deterioration of the underlying collateral in six trust

preferred securities.

27

Southern National Bancorp of Virginia

Pro Forma Capital Ratios

Pro Forma Capital Ratios

* See Pages 30-32 for non-GAAP reconciliation tables.

(1) After deducting underwriting discount and commission and estimated expenses.

(2)

Peer

group

includes

all

public

banks

and

thrifts

in

Virginia

and

the

Washington-Arlington-Alexandria

MSA

with

assets

between

$200

million

and

$2 billion –

ANCX, ABVA, BHRB, CFNL, EFSI, FBSS, GAFC, MNSB, MBRG, MBVA, UFBC, VCBI, VBGK, and WFBI.

Source: FIG Partners, SNL Financial LLC, Company Filings.

Assumptions

$000s

Offering Size

25,000

Capital Raised, Including Over-Allotment

28,750

Net Capital Raised

(1)

26,939

Risk

Weighing

Of

New

Capital

20%

Peer Average

(2)

Consolidated Capital Ratios

2Q09

Actual

3Q09

Actual

3Q09

Pro Forma*

2Q09 Actual

Tangible Common Equity / Tangible Assets*

13.31%

12.16%

17.12%

6.95%

Tier 1 Leverage Ratio

14.04%

13.91%

19.01%

9.86%

Total Risk-Based Capital Ratio

16.30%

16.09%

22.51%

12.75%

SONA

28

Southern National Bancorp of Virginia

Current Market Valuation

Current Market Valuation

* See Pages 30-32 for non-GAAP reconciliation tables.

(1) As of 10/22/2009.

(2)

Peer

group

includes

all

public

banks

and

thrifts

in

Virginia

and

the

Washington-Arlington-Alexandria

MSA

with

assets

between

$200

million

and

$2 billion

–

ANCX,

ABVA,

BHRB,

CFNL,

EFSI,

FBSS,

GAFC,

MNSB,

MBRG,

MBVA,

UFBC,

VCBI,

VBGK,

and

WFBI.

Source: FIG Partners, SNL Financial LLC, Company Filings.

Pricing Ratios

(1)

SONA

Peer Group

Average

(2)

Price / Book Value Per Share (%)

74.7%

93.9%

Price / Tangible Book Value Per Share (%)

90.5%

97.4%

Price / Pre-Tax Pre-Provision Earnings (x)

7.5x *

9.1x

29

Southern National Bancorp of Virginia

Investment Highlights

Investment Highlights

An opportunity to be part of a growing company that will be positioned to take

advantage of strategic growth opportunities that arise out of the turmoil

caused by the current economic crisis.

Earnings Potential In An Attractive Market

Washington, DC MSA performing at a higher level than U.S. economy as a whole.

Poised

to

take

market

share

and

quality

customers

due

to

current

market

conditions.

Strong Asset Quality

Solid underwriting standards.

Conservative credit culture.

Well Positioned To Capitalize On Expansion Opportunities

Management has excess capacity and depth.

Significant

integration

experience

–

completed

one

whole

bank

and

two

branch

acquisitions since inception.

Strong balance sheet puts the company in a position to acquire weaker institutions.

30

Southern National Bancorp of Virginia

Appendix A

31

Southern National Bancorp of Virginia

Non-GAAP Reconciliation Tables

Non-GAAP Reconciliation Tables

Source: FIG Partners, SNL Financial LLC, Company Filings.

Gross Proceeds From Offering

25,000

Gross Proceeds From Offering, Including Overallotment

28,750

Less Underwriting Fees & Commission

1,366

Less Legal, Printing, & Other Expenses

445

Net Proceeds From Offering, Including Overallotment

26,939

Tangible Common Equity / Tangible Assets

3Q09

Actual

3Q09

Pro Forma

Total Shareholders' Equity

66,331

66,331

Less Preferred Stock

0

0

Less Intangible Assets

11,552

11,552

Tangible Common Equity

54,779

54,779

Plus Net Proceeds From Offering, incl. Overallotment

26,939

Pro Forma Tangible Common Equity

81,718

Total Assets

462,006

462,006

Less Intangible Assets

11,552

11,552

Total Tangible Assets

450,454

450,454

Plus Net Proceeds From Offering

26,939

Pro Forma Tangible Assets

477,393

Tangible Common Equity / Tangible Assets

12.16%

17.12%

Amounts In $000s, Except Percentages

32

Southern National Bancorp of Virginia

Non-GAAP Reconciliation Tables

Non-GAAP Reconciliation Tables

Source: FIG Partners, SNL Financial LLC, Company Filings.

Pre-Tax Pre-Provision ROAA

6/30/2009 YTD

Actual

9/30/2009 YTD

Actual

Net Income

549

637

Income Taxes

147

126

Loan Loss Provisions

1,025

2,203

Amounts In $000s, Except Percentages

Securities Gains/Losses & OTTI Charges

640

1,705

Other Nonrecurring Revenue

0

0

Other One-Time Expenses

190

283

FTE Adjustment

0

0

Pre-Tax Pre Provision Earnings

2,551

4,954

Annualized Pre-Tax Pre Provision Earnings

5,102

6,605

Average Assets

434,703

436,722

Pre-Tax Pre-Provision ROAA

1.17%

1.51%

Adjusted for the following:

33

Southern National Bancorp of Virginia

Non-GAAP Reconciliation Tables

Non-GAAP Reconciliation Tables

Company Name

Access

National

Corporation

Alliance

Bankshares

Corporation

Burke &

Herbert Bank

& Trust

Company

Cardinal

Financial

Corporation

Eagle

Financial

Services, Inc.

Fauquier

Bankshares,

Inc.

Greater

Atlantic

Financial

Corp.

MainStreet

Bank

Middleburg

Financial

Corporation

Millennium

Bankshares

Corporation

United Financial

Banking

Companies, Inc.

Virginia

Commerce

Bancorp, Inc.

Virginia

Heritage Bank

WashingtonFirst

Bankshares, Inc.

Southern Nationa

Bancorp of

Virginia, Inc.

Ticker

ANCX

ABVA

BHRB

CFNL

EFSI

FBSS

GAFC

MNSB

MBRG

MBVA

UFBC

VCBI

VGBK

WFBI

SONA

Net Income

5,434

-972

15,599

4,311

1,859

1,647

-6,261

138

3,078

-5,773

616

-7,593

482

37

549

  Plus Income Taxes

3,702

-519

7,558

1,836

591

613

0

0

161

0

267

-4,303

0

21

147

  Plus Loan Loss Provisions

3,429

1,274

1,550

2,700

1,850

560

953

258

2,620

1,965

165

31,813

833

919

1,025

  Less Securities Gains/Losses & OTTI Charges

649

863

50

552

0

-166

0

365

891

-55

0

-138

221

417

-640

  Less Other Nonrecurring Revenue

0

0

0

0

0

0

0

0

0

8

0

0

0

35

0

  Plus Nonrecurring Expense

300

299

853

850

241

240

100

93

481

0

0

1,200

130

149

190

  Plus FTE Adjustment

0

138

475

241

369

160

0

5

760

87

37

0

0

0

0

Pre-Tax Pre-Provision Earnings

12,216

-643

25,985

9,386

4,910

3,386

-5,208

129

6,209

-3,674

1,085

21,255

1,224

674

2,551

Annualized Pre-Tax Pre Provision Earnings

24,432

-1,286

51,970

18,772

9,820

6,772

-10,416

258

12,418

-7,348

2,170

42,510

2,448

1,348

5,102

Average Assets

736,795

597,501

1,784,401

1,748,555

527,880

521,794

212,806

200,542

1,013,977

299,734

244,288

2,731,733

266,327

313,998

434,703

Pre-Tax Pre-Provision ROAA

3.32%

-0.22%

2.91%

1.07%

1.86%

1.30%

-4.89%

0.13%

1.22%

-2.45%

0.89%

1.56%

0.92%

0.43%

1.17%

Peer Average

0.57%

As Of 6/30/2009 YTD - Amounts In $000s, Except Percentages

Peer group includes all public banks and thrifts in Virginia and the Washington-Arlington-Alexandria MSA with assets between $200 million and $2

billion – ANCX, ABVA, BHRB, CFNL, EFSI, FBSS, GAFC, MNSB, MBRG, MBVA, UFBC, VCBI, VBGK, and WFBI.

Source: FIG Partners, SNL Financial LLC, Company Filings. 

34

Southern National Bancorp of Virginia

Presented By: