Southern National Bancorp
Jul 19, 2007

Southern National Bancorp of Virginia Inc. reports record earnings for the second quarter and the first half of 2007

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--

Southern National Bancorp of Virginia Inc. (NASDAQ:SONA) announced today that net income for the quarter ended June 30, 2007 was $647 thousand and $1.1 million for the first half of 2007, both records.

Until the second quarter of 2007 the Company maintained a valuation allowance against its deferred tax assets. As of the current quarter, however, management concluded that the valuation allowances on the net deferred tax assets were no longer necessary given the Company's sustained income and growth over the past six calendar quarters. The tax valuation allowance reversal of $1.9 million related to the net deferred tax assets obtained in the 1st Service Bank acquisition was recognized as an adjustment to goodwill. The Company recorded a tax benefit of $384 thousand related to the reversal of the remaining tax valuation allowance on the deferred tax assets. The tax benefit was offset by tax expense totaling $331 thousand.

Net income was $647 thousand during the quarter ended June 30, 2007 compared to $239 thousand during the quarter ended June 30, 2006 and $474 thousand last quarter. Net income for the current quarter includes a tax benefit of $53 thousand.

Net interest income was $2.6 million for the second quarter of 2007, approximately double the $1.3 million in the second quarter of 2006. Non-interest income was $199 thousand during the second quarter of 2007, compared to $66 thousand during the same quarter of the prior year. The growth in non-interest income was largely attributable to three factors. First, account maintenance and deposit service fees grew from $42 thousand during the second quarter of 2006 to $76 thousand in the second quarter of 2007. Second, loan servicing income on the serviced loan portfolio acquired in the 1st Service Bank acquisition was $58 thousand during the second quarter of 2007. There was no loan servicing income the prior year quarter. Third, Sonabank purchased a bank owned life insurance policy during the first quarter of 2007 which generated income of $56 thousand during the second quarter of 2007.

For the six months ended June 30, 2007 net income was $1.1 million, up 250% from $321 thousand for the first half of 2006.

Net interest income was $5.1 million during the six months ended June 30, 2007 compared to $2.6 million during the comparable period the prior year. Non- interest income trebled from $119 thousand in the first half of 2006 to $382 thousand in the first half of 2007.

Despite the 1st Service Bank acquisition and the organic growth of the Bank, the Company's operating expenses were well controlled and rose 82% from $2.1 million to $3.9 million during the six month period. As a result, the efficiency ratio benefited by declining to 70.08% during the first half of 2007 from 77.72% during the first half of 2006.

Total assets of Southern National Bancorp of Virginia were $316.6 million as of June 30, 2007 up from $290.6 million as of December 31, 2006. Net loans grew from $201.8 million at the end of 2006 to $211.2 million at June 30, 2007. Investment securities, available for sale and held to maturity, grew to $64.4 million at June 30, 2007 compared to $56.5 million at December 31, 2006. Both the growth in the net loans and the growth in the securities portfolio were a result of originations and purchases outpacing very heavy prepayments of residential mortgages and residential mortgage-backed securities.

Loan Portfolio

In the loan portfolio, repayments in the hybrid adjustable rate (ARM) residential mortgage portfolio acquired in the 1st Service Bank acquisition were heavy as expected. Prepayments in the residential mortgage portfolio acquired from 1st Service Bank were $7.4 million during the second quarter and were $9.1 million for the first half. As a result the single family portfolio fell 11.7% to $55.7 million. With the exception of home equity lines of credit (largely acquired from 1st Service Bank) and loans to individuals, all other loan categories were up strongly. The commercial and industrial loan category grew the fastest at 34.7%, rising from $19.6 million at year-end to $26.4 million at June 30, 2007. The construction and development loan category rose 19.9% to $42.9 million, and commercial real estate was up 3.0% to $71.4 million.

During the quarter two loans to the borrower who were placed on non-accrual last quarter were transferred to other real estate owned (OREO) as the Bank accepted deeds in lieu of foreclosure. The OREO is comprised of 32 finished lots in Culpeper, Virginia and a single family home in Warrenton, Virginia. The Bank is actively marketing both properties.

Sonabank categorized all of its loans according to the industry in which the borrower operates. Management and the Board review credit concentrations quarterly. As of June 30, 2007 the five largest concentrations were as follows:

Land subdivision                               $24.3 million
Lessors of non-residential, buildings          $17.7 million
Lessors of residential buildings and dwellings $7.3 million
Site preparation contractors                   $5.4 million
Full service restaurants                       $5.0 million

The largest concentration is $24.3 million in land subdivision. Of that, $5.5 million is risk rated 2, which are considered to be among the bank's highest quality loans. The remainder is diversified among three different markets as follows:

Charlottesville and adjacent Counties $12.0 millionRichmond and adjacent Counties        $4.0 millionWest Virginia$2.8 million

Southern National Bancorp of Virginia's allowance for loan losses as a percentage of total loans at June 30, 2007 was 1.35%, compared to 1.33% at the end of 2006 and 1.41% at June 30, 2006.

Securities Portfolio

In the securities portfolio the Bank experienced prepayments similar to those in the residential mortgage loan portfolio on those securities where the underlying collateral is hybrid ARMs. Principal repayments on the hybrid ARM mortgage-backed securities were $4.3 million during the first half of 2007 and $3.3 million on collateralized mortgage obligations during the same period. These prepayments were partially offset by purchases of floating rate trust preferred securities totaling $7 million during the first half. In June when the yield curve steepened and yields improved on intermediate term securities the Bank also purchased $6.9 million of conventional 15 year Fannie Mae and Freddie Mac pass-through securities to offset anticipated accelerating prepayments on the hybrid ARM securities in the portfolio. As a result the securities portfolio grew 13.9% from $56.5 million as of year end 2006 to $64.4 million as of June 30, 2007. The average yield in the securities portfolio as of June 30, 2007 was 5.66% compared to 5.19% at the end of 2006.

Non-interest bearing deposits were up at June 30, 2007 to $19.3 million from $19.2 million at December 31, 2006.

Interest bearing deposits rose from $196.6 million as of December 31, 2006 to $217.6 million at June 30, 2007.

Total stockholders' equity increased from $68.2 million as of December 31, 2006 to $69.4 million at June 30, 2007 as a result of the retention of earnings.

Richmond Loan Production Office

As previously announced, Southern National Bancorp's subsidiary Sonabank N.A. announced that it had opened a Loan Production Office in Richmond, Virginia. Mr. Aidan Harland, Vice President, heads the office. Mr. Harland and other Sonabank officers are very familiar with the Richmond market and look forward to increased involvement there.

Southern National Bancorp of Virginia is the holding company for Sonabank N.A.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that relate to future events or the future performance of Southern National Bancorp of Virginia, Inc. Forward-looking statements are not guarantees of performance or results. These forward-looking statements are based on the current beliefs and expectations of the respective management of Southern National Bancorp and SonaBank and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond their respective control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed or implied in these forward-looking statements because of numerous possible uncertainties. Words like "may," "plan," "contemplate," "anticipate," "believe," "intend," "continue," "expect," "project," "predict," "estimate," "could," "should," "would," "will," and similar expressions, should be considered as identifying forward-looking statements, although other phrasing may be used. Such forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q) filed by Southern National Bancorp. You should consider such factors and not place undue reliance on such forward-looking statements. No obligation is undertaken by Southern National Bancorp to update such forward-looking statements to reflect events or circumstances occurring after the issuance of this press release.

             Southern National Bancorp of Virginia, Inc.
                      Charlottesville, Virginia
----------------------------------------------------------------------

                Condensed Consolidated Balance Sheets
                             (Unaudited)
----------------------------------------------------------------------
(Dollars in thousands)

                                               June 30,   December 31,
                                                 2007         2006
                                             ------------ ------------
Assets
Cash and cash equivalents                    $     6,583  $     8,126
Investment securities-available for sale          27,786       20,882
Investment securities-held to maturity            36,596       35,623
Other earning assets                               2,467        2,446
Loans, net of unearned income                    214,061      204,544
Allowance for loan losses                         (2,899)      (2,726)
                                             ------------ ------------
  Net loans                                      211,162      201,818
Intangible assets                                 13,426       15,718
Bank premises and equipment, net                   3,693        3,499
Bank-owned life insurance                          5,081            -
Other real estate owned                            3,993            -
Deferred tax assets                                2,545           12
Other assets                                       3,238        2,450
                                             ------------ ------------
  Total assets                               $   316,570  $   290,574
                                             ============ ============

Liabilities and stockholders' equity
Noninterest-bearing deposits                 $    19,299  $    19,216
Interest-bearing deposits                        217,630      196,588
Borrowings                                         8,205        5,033
Other liabilities                                  2,003        1,510
                                             ------------ ------------
  Total liabilities                              247,137      222,347
Stockholders' equity                              69,433       68,227
                                             ------------ ------------
  Total liabilities and stockholders' equity $   316,570  $   290,574
                                             ============ ============

Condensed Consolidated Statements of Income (Unaudited) ---------------------------------------------------------------------- (Dollars in thousands)

For the Quarters For the Six Months Ended Ended June 30, June 30, 2007 2006 2007 2006 --------- -------- --------- --------

Interest and dividend income $ 5,248 $ 2,363 $ 10,102 $ 4,448 Interest expense 2,601 1,018 4,989 1,843 --------- -------- --------- -------- Net interest income 2,647 1,345 5,113 2,605 Provision for loan losses 325 136 575 286 --------- -------- --------- -------- Net interest income after provision for loan losses 2,322 1,209 4,538 2,319 --------- -------- --------- -------- Account maintenance and deposit service fees 76 42 150 87 Loan servicing income 58 - 120 - Income from bank-owned life insurance 56 - 80 - Other loan fees 9 24 32 32 --------- -------- --------- -------- Noninterest income 199 66 382 119 --------- -------- --------- -------- Employee compensation and benefits 759 504 1,591 1,029 Occupancy and equipment 376 168 747 327 Other expenses 792 364 1,513 761 --------- -------- --------- -------- Noninterest expense 1,927 1,036 3,851 2,117 --------- -------- --------- -------- Net income before income taxes 594 239 1,069 321 Income tax benefit (53) - (53) - --------- -------- --------- -------- Net income $ 647 $ 239 $ 1,122 $ 321 ========= ======== ========= ========
                         Financial Highlights
                             (Unaudited)
----------------------------------------------------------------------
(Dollars in thousands except per share data)



                          For the Quarters       For the Six Months
                                Ended                   Ended
                              June 30,                June 30,
                          2007        2006        2007        2006
                       ----------- ----------- ----------- -----------

Per Share Data (1):
Earnings per share -
 Basic                 $     0.10  $     0.06  $     0.17  $     0.08
Earnings per share -
 Diluted               $     0.09  $     0.06  $     0.16  $     0.08
Book value per share                           $    10.21  $     8.46
Tangible book value
 per share                                     $     8.24  $     7.74
Weighted average
 shares outstanding -
 Basic                  6,798,494   3,850,000   6,798,494   3,850,000
Weighted average
 shares outstanding -
 Diluted                6,890,969   3,925,390   6,891,242   3,925,390
Shares outstanding at
 end of period                                  6,798,494   3,850,000

Selected Performance
 Ratios and Other
 Data:
Return on average
 assets                      0.85%       0.69%       0.76%       0.49%
Return on average
 equity                      3.76%       2.95%       3.29%       1.99%
Yield on earning
 assets                      7.59%       7.18%       7.48%       7.09%
Cost of funds                4.82%       4.17%       4.80%       3.99%
Cost of funds
 including non-
 interest bearing
 deposits                    4.47%       3.88%       4.44%       3.71%
Net interest margin          3.83%       4.09%       3.79%       4.15%
Efficiency ratio            67.71%      73.48%      70.08%      77.72%
Net charge-offs to
 average loans               0.14%       0.00%       0.19%       0.00%
Amortization of
 intangibles           $      198  $      108  $      398  $      218
As of June 30, December 31, 2007 2006 ------------------------

Nonaccrual loans $ - $ - Other real estate owned 3,993 - ----------- ------------ Total nonperforming assets $ 3,993 $ - Allowance for loan losses to total loans 1.35% 1.33% Nonperforming assets to allowance for loan losses 137.74% 0.00% Nonperforming assets to total assets 1.26% 0.00% Stockholders' equity to total assets 21.93% 23.48% Stockholders' equity to total tangible assets 18.65% 19.10% Intangible assets: Goodwill $ 8,530 $ 10,423 Core deposit intangible 4,231 4,594 Servicing rights 665 701 ----------- ------------ Total $ 13,426 $ 15,718

(1) Reflects 10% stock dividend declared April 19, 2007.

Source: Southern National Bancorp of Virginia Inc.


Contact: Southern National Bancorp R. Roderick Porter President 202-464-1130 ext. 2406 Fax: 202-464-1134 www.sonabank.com rporter@sonabank.com