Southern Financial Bancorp Reports First Quarter Earnings Increase of 35.9%

Apr 26, 2001, 01:00 ET from Southern Financial Bancorp, Inc.

    WARRENTON, Va., April 26 /PRNewswire/ -- The Board of Directors of
 Southern Financial Bancorp, Inc. (Nasdaq:   SFFB) reported net income of $1.6
 million ($.52 diluted earnings per share) for the quarter ended March 31,
 2001, an increase of 35.9% over the $1.2 million ($.44 diluted earnings per
 share) earned for the quarter ended March 31, 2000.  The increase in net
 income was primarily due to growth in interest earning assets, income from
 sales of securities, and increased fee income.
     Georgia S. Derrico, Chairman and CEO, stated, "We are very pleased with
 our performance during the first quarter of 2001.  We are committed to
 building a strong franchise which enhances shareholder value and provides
 valuable services to our customers."
     Net interest income for the quarter was $5.2 million, an increase of 24.7%
 over the same quarter in the prior year.  The increase in net interest income
 was due to the growth in earning assets resulting from purchases of investment
 securities, increased commercial loan originations as well as the acquisition
 of $71 million in First Savings Bank's assets. Average earning assets
 increased 49.3% to $583.5 million compared with the first quarter of 2000.
 Deposits and borrowings, including $13 million of trust-preferred securities
 issued in 2000, funded the earning asset growth.   The net interest margin was
 3.59% in the first quarter of 2001 compared to 4.30% in the first quarter of
 2000 and 3.51% in the fourth quarter of 2000.  This change is primarily due to
 a higher than normal investment to loan ratio resulting from the immediate
 deployment of the trust preferred securities proceeds. As the loan portfolio
 continues to grow, this ratio is expected to decline.  Additionally, the
 purchase of $15 million of bank owned life insurance (BOLI) in the fourth
 quarter of 2000, which generates a tax-equivalent yield of almost 10%, is
 recorded in other income as opposed to interest income, consistent with
 industry practice.
     Total non-interest income increased 55.7% to $1.6 million for the quarter
 ended March 31, 2001 compared with $1.0 million in the first quarter of 2000.
 During the quarter ended March 31, 2001, Southern Financial sold $27.0 million
 of primarily fixed rate securities and generated net gains of $200 thousand.
 In addition, income totaling $232 thousand representing the increase in the
 current value of the BOLI is included in other income. Non-interest income
 also includes the traditional deposit fees, electronic banking fees, and fees
 generated from commercial service products, all of which contributed to the
 increased non-interest income.
     Non-interest expenses for the quarter were $4.0 million, an increase of
 28.6% when compared to the first quarter of 2000.  Increased expenses
 resulting from the acquisition of First Savings Bank, including goodwill
 amortization, accounted for a substantial portion of the increase. Other
 expenses, including employee compensation, also increased primarily due to
 normal pay increases and a larger employee base.  Overall, the efficiency
 ratio improved to 57.7% for the quarter ended March 31, 2001 from 59.4% for
 the quarter ended March 31, 2000.
     Total assets increased to $676.2 million at March 31, 2001, an increase of
 10.9% from $609.9 million at December 31, 2000. The increase in investment
 securities of $48 million resulted from purchases of residential fixed-rate
 mortgage-backed securities and corporate bonds. Loans receivable increased
 $11.6 million due primarily to commercial loan originations. The allowance for
 loan losses increased to 1.63% of total loan receivables at March 31, 2001
 from 1.54% at December 31, 2000.  Deposits increased 8.1% to $556.6 million at
 March 31, 2001 from December 31, 2000, which together with borrowings funded
 most of the asset growth.
     In April, Southern Financial announced its intention to open a new branch
 in Georgetown.  Southern Financial has received approvals from the Federal
 Reserve Bank and the Virginia Bureau of Financial Institutions, and it is
 awaiting approval from the District of Columbia. The branch opening is
 targeted for early August.
     Southern Financial will host a conference call for investors tomorrow,
 April 27, 2001, at 9:00 a.m. Eastern Standard Time to discuss the Company's
 financial results.  To participate in the conference call, dial 800-218-0530
 approximately five minutes before the scheduled start time.  You will be asked
 to identify yourself to the operator and reference the Southern Financial
 conference call.
      Southern Financial Bancorp, Inc. is the holding company of Southern
 Financial Bank, a bank operating nineteen branch offices throughout Northern
 Virginia.
 
     Statements contained in this press release that state that certain results
 are expected or anticipated to occur or otherwise state the company's
 predictions for the future, are forward-looking statements.  These particular
 forward-looking statements and all other statements that are not historical
 facts are subject to a number of risks and uncertainties and actual results
 may differ materially.  Such factors include but are not limited to: general
 economic conditions in the company's markets; major slowdowns in the
 commercial lending markets that impact credit quality; the impact of
 competitive products and pricing; significant fluctuations in interest rates
 that could reduce net interest margin; difficulties or delays in the
 development, production, and marketing of new products; a reduction in fee
 revenue from existing products and services due to the economy and/or
 competition; and the amount and rate of growth of the company's general and
 administrative expenses.  Consequently, all forward-looking statements made
 herein are qualified by these cautionary statements and cautionary language in
 the company's most recent form 10-K report and other documents filed with the
 Securities and Exchange Commission.
 
                                              Southern Financial Bancorp, Inc.
 
                                                    FINANCIAL HIGHLIGHTS
 
                                                        Quarters Ended
                                                    March 31,      December 31,
     (dollars in thousands,
     except per share data)                     2001        2000        2000
 
     Earnings Data:
     Interest Income                          $12,345      $8,039     $11,747
     Interest Expense                           7,112       3,841       6,988
     Net Interest Income                        5,233       4,198       4,759
     Provision for Loan Losses                    520         350         360
     Noninterest Income                         1,593       1,023       1,419
     Noninterest Expense before
      Amortization                              3,938       3,102       3,729
     Amortization of Intangible Assets             76          19          76
     Net Income before Income Taxes             2,292       1,750       2,014
     Provision for Income Taxes                   694         574         600
     Net income                                $1,598      $1,176      $1,414
 
     Per Share Data:
     Basic Earnings per Share                   $0.53       $0.44       $0.46
     Diluted Earnings per Share                 $0.52       $0.44       $0.46
     Cash Basis Diluted Earnings per Share      $0.54       $0.44       $0.48
     Book Value per Share (Period End)         $14.37      $11.22      $13.17
     Tangible Book Value per Share (Period
      End)                                     $13.16      $11.07      $11.96
     Diluted Tangible Book Value per Share
      (Period End)                             $12.88      $10.98      $11.80
     Average Shares Outstanding (Basic)     3,014,710   2,666,196   3,036,610
     Average Shares Outstanding (Diluted)   3,080,519   2,688,171   3,077,503
     Shares Outstanding (Period End)        3,014,710   2,666,196   3,014,710
 
     Period End Balances:
     Total Assets                            $676,176    $427,739    $609,936
     Total Loans, net of deferred fees        331,416     240,533     318,912
     Allowance for Loan Losses                  5,395       3,601       4,921
     Investment Securities                    277,974     139,671     230,023
     Total Earning Assets                     621,792     400,108     546,492
     Total Intangible Assets                    3,631         409       3,639
     Total Non-interest Bearing Deposits       68,175      52,271      66,878
     Total Interest Bearing Deposits          488,436     335,481     448,234
     Total Deposits                           556,611     387,752     515,112
     Capital Trust Borrowings                  13,000         -        13,000
     Total Interest-Bearing Liabilities       556,436     340,481     495,234
     Total Liabilities                        632,861     397,812     570,247
     Total Stockholders' Equity                43,314      29,927      39,689
     Total Liabilities and Equity             676,176     427,739     609,936
 
 
     Selected Key Data:
     Yield on Earning Assets                    8.46%       8.34%       8.66%
     Cost of Funds                              5.50%       4.75%       5.85%
     Cost of Funds including non-interest
      bearing deposits                          4.89%       4.10%       5.14%
     Net interest Margin                        3.59%       4.30%       3.51%
     Efficiency Ratio (including
      amortization of intangibles)             58.80%      59.79%      61.58%
     Efficiency Ratio (excluding
      amortization of intangibles)             57.69%      59.42%      60.35%
     Return on Average Assets                   0.99%       1.14%       0.96%
     Return on Average Equity                  15.64%      16.23%      14.88%
     Stockholders' Equity to Tangible
      Assets (Period End)                       5.90%       6.91%       5.95%
 
 
     Selected Average Balances:
     Loans                                   $320,980    $238,842    $317,017
     Investment Securities-Available for
      Sale                                    258,821     144,252     221,488
     Overnight Deposits                         3,743       2,669       4,133
     Earning Assets                           583,544     385,762     542,638
     Total Assets                             645,645     413,221     587,035
     Interest Bearing Deposits                439,111     305,510     405,070
     Borrowings                                78,204      18,185      72,705
     Total Interest Bearing Liabilities       517,315     323,695     477,775
     Noninterest Bearing Deposits              64,323      50,768      65,511
     Total Deposits                           503,434     356,278     470,581
     Total Liabilities                        604,782     384,245     549,013
     Stockholders' Equity                      40,863      28,976      38,022
 
     Allowance for Loan Losses:
     Balance-Beginning of Period               $4,921      $3,452      $4,775
     Provision for Loan Losses                    520         350         360
     Charge-offs                                 (136)       (207)       (347)
     Recoveries                                    90           6         133
     Balance-End of Period                     $5,395      $3,601      $4,921
 
     Asset Quality
     Nonaccrual Loans                          $1,901        $534      $1,872
     90 Days Past Due                              42         108           9
     Other Real Estate Owned                       38       2,296          17
     Total Nonperforming Assets                 1,981       2,938       1,898
     Provision for Loan Losses to net
      charge-offs                               1130%        174%        168%
     Nonperforming Assets to Total Assets       0.29%       0.69%       0.31%
     Allowance for Loan Losses to
      Nonperforming Assets                    272.34%     122.54%     259.27%
     Allowance for Loan Losses to Total
      Loans                                     1.63%       1.50%       1.54%
 
 
                         Southern Financial Bancorp, Inc.
                                37 East Main Street
                            Warrenton, Virginia  20186
 
                            CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)
 
                                                  March 31,        December 31,
                                                    2001              2000
     Assets
     Cash and overnight deposits                $29,318,940       $24,516,252
     Investments                                277,973,893       230,022,663
     Loans receivable                           325,369,588       313,770,584
     Loans held for sale                            651,400           220,000
     Bank premises & equipment, net               6,734,667         6,687,190
     Other assets                                36,127,449        34,719,397
 
         Total assets                          $676,175,937      $609,936,086
 
     Liabilities
     Deposits                                   556,611,400       515,111,665
     Borrowings from FHLB                        55,000,000        34,000,000
     Capital trust borrowings                    13,000,000        13,000,000
     Other liabilities                            8,250,087         8,135,260
         Total liabilities                      632,861,487       570,246,925
 
     Stockholders' equity                        43,314,450        39,689,161
         Total liabilities and
           stockholders' equity                $676,175,937      $609,936,086
 
 
                       CONSOLIDATED STATEMENT OF OPERATIONS
                                    (Unaudited)
 
                                                     For the Three Months
                                                           March 31,
                                                    2001              2000
 
     Interest income                            $12,344,828        $8,038,559
     Interest expense                             7,111,715         3,840,932
 
     Net interest income                          5,233,113         4,197,627
     Provision for loan losses                      520,000           350,000
 
     Net interest income after
       provision for loan losses                  4,713,113         3,847,627
 
     Gain on sale of loans                          316,727           333,378
     Fee income                                     843,029           658,614
     Gain (loss) on sale of investment
      securities, net                               200,307               -
     Other income                                   232,600            31,228
 
     Non interest income                          1,592,663         1,023,220
 
     Employee compensation and benefits           2,014,684         1,658,386
     Premises, equipment and data
      processing                                  1,063,733           890,792
     Other expenses                                 935,362           572,119
 
     Non interest expense                         4,013,779         3,121,297
 
     Net income before taxes                      2,291,997         1,749,550
 
     Provision for income taxes                     694,300           574,000
 
     Net income                                  $1,597,697        $1,175,550
 
     BASIC EARNINGS PER SHARE                         $0.53             $0.44
     DILUTED EARNINGS PER SHARE                       $0.52             $0.44
     DIVIDENDS PER SHARE                              $0.12             $0.12
 
     WEIGHTED AVERAGE SHARES OUTSTANDING:
         BASIC                                    3,014,710         2,666,196
         DILUTED                                  3,080,519         2,688,171
     ACTUAL SHARES OUTSTANDING                    3,014,710         2,666,196
 
     CONTACT:  Patricia A. Ferrick, Senior VP and CFO of Southern Financial
 Bancorp. Inc., 540-349-3900, or fax, 540-349-3904.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32126636
 
 

SOURCE Southern Financial Bancorp, Inc.
    WARRENTON, Va., April 26 /PRNewswire/ -- The Board of Directors of
 Southern Financial Bancorp, Inc. (Nasdaq:   SFFB) reported net income of $1.6
 million ($.52 diluted earnings per share) for the quarter ended March 31,
 2001, an increase of 35.9% over the $1.2 million ($.44 diluted earnings per
 share) earned for the quarter ended March 31, 2000.  The increase in net
 income was primarily due to growth in interest earning assets, income from
 sales of securities, and increased fee income.
     Georgia S. Derrico, Chairman and CEO, stated, "We are very pleased with
 our performance during the first quarter of 2001.  We are committed to
 building a strong franchise which enhances shareholder value and provides
 valuable services to our customers."
     Net interest income for the quarter was $5.2 million, an increase of 24.7%
 over the same quarter in the prior year.  The increase in net interest income
 was due to the growth in earning assets resulting from purchases of investment
 securities, increased commercial loan originations as well as the acquisition
 of $71 million in First Savings Bank's assets. Average earning assets
 increased 49.3% to $583.5 million compared with the first quarter of 2000.
 Deposits and borrowings, including $13 million of trust-preferred securities
 issued in 2000, funded the earning asset growth.   The net interest margin was
 3.59% in the first quarter of 2001 compared to 4.30% in the first quarter of
 2000 and 3.51% in the fourth quarter of 2000.  This change is primarily due to
 a higher than normal investment to loan ratio resulting from the immediate
 deployment of the trust preferred securities proceeds. As the loan portfolio
 continues to grow, this ratio is expected to decline.  Additionally, the
 purchase of $15 million of bank owned life insurance (BOLI) in the fourth
 quarter of 2000, which generates a tax-equivalent yield of almost 10%, is
 recorded in other income as opposed to interest income, consistent with
 industry practice.
     Total non-interest income increased 55.7% to $1.6 million for the quarter
 ended March 31, 2001 compared with $1.0 million in the first quarter of 2000.
 During the quarter ended March 31, 2001, Southern Financial sold $27.0 million
 of primarily fixed rate securities and generated net gains of $200 thousand.
 In addition, income totaling $232 thousand representing the increase in the
 current value of the BOLI is included in other income. Non-interest income
 also includes the traditional deposit fees, electronic banking fees, and fees
 generated from commercial service products, all of which contributed to the
 increased non-interest income.
     Non-interest expenses for the quarter were $4.0 million, an increase of
 28.6% when compared to the first quarter of 2000.  Increased expenses
 resulting from the acquisition of First Savings Bank, including goodwill
 amortization, accounted for a substantial portion of the increase. Other
 expenses, including employee compensation, also increased primarily due to
 normal pay increases and a larger employee base.  Overall, the efficiency
 ratio improved to 57.7% for the quarter ended March 31, 2001 from 59.4% for
 the quarter ended March 31, 2000.
     Total assets increased to $676.2 million at March 31, 2001, an increase of
 10.9% from $609.9 million at December 31, 2000. The increase in investment
 securities of $48 million resulted from purchases of residential fixed-rate
 mortgage-backed securities and corporate bonds. Loans receivable increased
 $11.6 million due primarily to commercial loan originations. The allowance for
 loan losses increased to 1.63% of total loan receivables at March 31, 2001
 from 1.54% at December 31, 2000.  Deposits increased 8.1% to $556.6 million at
 March 31, 2001 from December 31, 2000, which together with borrowings funded
 most of the asset growth.
     In April, Southern Financial announced its intention to open a new branch
 in Georgetown.  Southern Financial has received approvals from the Federal
 Reserve Bank and the Virginia Bureau of Financial Institutions, and it is
 awaiting approval from the District of Columbia. The branch opening is
 targeted for early August.
     Southern Financial will host a conference call for investors tomorrow,
 April 27, 2001, at 9:00 a.m. Eastern Standard Time to discuss the Company's
 financial results.  To participate in the conference call, dial 800-218-0530
 approximately five minutes before the scheduled start time.  You will be asked
 to identify yourself to the operator and reference the Southern Financial
 conference call.
      Southern Financial Bancorp, Inc. is the holding company of Southern
 Financial Bank, a bank operating nineteen branch offices throughout Northern
 Virginia.
 
     Statements contained in this press release that state that certain results
 are expected or anticipated to occur or otherwise state the company's
 predictions for the future, are forward-looking statements.  These particular
 forward-looking statements and all other statements that are not historical
 facts are subject to a number of risks and uncertainties and actual results
 may differ materially.  Such factors include but are not limited to: general
 economic conditions in the company's markets; major slowdowns in the
 commercial lending markets that impact credit quality; the impact of
 competitive products and pricing; significant fluctuations in interest rates
 that could reduce net interest margin; difficulties or delays in the
 development, production, and marketing of new products; a reduction in fee
 revenue from existing products and services due to the economy and/or
 competition; and the amount and rate of growth of the company's general and
 administrative expenses.  Consequently, all forward-looking statements made
 herein are qualified by these cautionary statements and cautionary language in
 the company's most recent form 10-K report and other documents filed with the
 Securities and Exchange Commission.
 
                                              Southern Financial Bancorp, Inc.
 
                                                    FINANCIAL HIGHLIGHTS
 
                                                        Quarters Ended
                                                    March 31,      December 31,
     (dollars in thousands,
     except per share data)                     2001        2000        2000
 
     Earnings Data:
     Interest Income                          $12,345      $8,039     $11,747
     Interest Expense                           7,112       3,841       6,988
     Net Interest Income                        5,233       4,198       4,759
     Provision for Loan Losses                    520         350         360
     Noninterest Income                         1,593       1,023       1,419
     Noninterest Expense before
      Amortization                              3,938       3,102       3,729
     Amortization of Intangible Assets             76          19          76
     Net Income before Income Taxes             2,292       1,750       2,014
     Provision for Income Taxes                   694         574         600
     Net income                                $1,598      $1,176      $1,414
 
     Per Share Data:
     Basic Earnings per Share                   $0.53       $0.44       $0.46
     Diluted Earnings per Share                 $0.52       $0.44       $0.46
     Cash Basis Diluted Earnings per Share      $0.54       $0.44       $0.48
     Book Value per Share (Period End)         $14.37      $11.22      $13.17
     Tangible Book Value per Share (Period
      End)                                     $13.16      $11.07      $11.96
     Diluted Tangible Book Value per Share
      (Period End)                             $12.88      $10.98      $11.80
     Average Shares Outstanding (Basic)     3,014,710   2,666,196   3,036,610
     Average Shares Outstanding (Diluted)   3,080,519   2,688,171   3,077,503
     Shares Outstanding (Period End)        3,014,710   2,666,196   3,014,710
 
     Period End Balances:
     Total Assets                            $676,176    $427,739    $609,936
     Total Loans, net of deferred fees        331,416     240,533     318,912
     Allowance for Loan Losses                  5,395       3,601       4,921
     Investment Securities                    277,974     139,671     230,023
     Total Earning Assets                     621,792     400,108     546,492
     Total Intangible Assets                    3,631         409       3,639
     Total Non-interest Bearing Deposits       68,175      52,271      66,878
     Total Interest Bearing Deposits          488,436     335,481     448,234
     Total Deposits                           556,611     387,752     515,112
     Capital Trust Borrowings                  13,000         -        13,000
     Total Interest-Bearing Liabilities       556,436     340,481     495,234
     Total Liabilities                        632,861     397,812     570,247
     Total Stockholders' Equity                43,314      29,927      39,689
     Total Liabilities and Equity             676,176     427,739     609,936
 
 
     Selected Key Data:
     Yield on Earning Assets                    8.46%       8.34%       8.66%
     Cost of Funds                              5.50%       4.75%       5.85%
     Cost of Funds including non-interest
      bearing deposits                          4.89%       4.10%       5.14%
     Net interest Margin                        3.59%       4.30%       3.51%
     Efficiency Ratio (including
      amortization of intangibles)             58.80%      59.79%      61.58%
     Efficiency Ratio (excluding
      amortization of intangibles)             57.69%      59.42%      60.35%
     Return on Average Assets                   0.99%       1.14%       0.96%
     Return on Average Equity                  15.64%      16.23%      14.88%
     Stockholders' Equity to Tangible
      Assets (Period End)                       5.90%       6.91%       5.95%
 
 
     Selected Average Balances:
     Loans                                   $320,980    $238,842    $317,017
     Investment Securities-Available for
      Sale                                    258,821     144,252     221,488
     Overnight Deposits                         3,743       2,669       4,133
     Earning Assets                           583,544     385,762     542,638
     Total Assets                             645,645     413,221     587,035
     Interest Bearing Deposits                439,111     305,510     405,070
     Borrowings                                78,204      18,185      72,705
     Total Interest Bearing Liabilities       517,315     323,695     477,775
     Noninterest Bearing Deposits              64,323      50,768      65,511
     Total Deposits                           503,434     356,278     470,581
     Total Liabilities                        604,782     384,245     549,013
     Stockholders' Equity                      40,863      28,976      38,022
 
     Allowance for Loan Losses:
     Balance-Beginning of Period               $4,921      $3,452      $4,775
     Provision for Loan Losses                    520         350         360
     Charge-offs                                 (136)       (207)       (347)
     Recoveries                                    90           6         133
     Balance-End of Period                     $5,395      $3,601      $4,921
 
     Asset Quality
     Nonaccrual Loans                          $1,901        $534      $1,872
     90 Days Past Due                              42         108           9
     Other Real Estate Owned                       38       2,296          17
     Total Nonperforming Assets                 1,981       2,938       1,898
     Provision for Loan Losses to net
      charge-offs                               1130%        174%        168%
     Nonperforming Assets to Total Assets       0.29%       0.69%       0.31%
     Allowance for Loan Losses to
      Nonperforming Assets                    272.34%     122.54%     259.27%
     Allowance for Loan Losses to Total
      Loans                                     1.63%       1.50%       1.54%
 
 
                         Southern Financial Bancorp, Inc.
                                37 East Main Street
                            Warrenton, Virginia  20186
 
                            CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)
 
                                                  March 31,        December 31,
                                                    2001              2000
     Assets
     Cash and overnight deposits                $29,318,940       $24,516,252
     Investments                                277,973,893       230,022,663
     Loans receivable                           325,369,588       313,770,584
     Loans held for sale                            651,400           220,000
     Bank premises & equipment, net               6,734,667         6,687,190
     Other assets                                36,127,449        34,719,397
 
         Total assets                          $676,175,937      $609,936,086
 
     Liabilities
     Deposits                                   556,611,400       515,111,665
     Borrowings from FHLB                        55,000,000        34,000,000
     Capital trust borrowings                    13,000,000        13,000,000
     Other liabilities                            8,250,087         8,135,260
         Total liabilities                      632,861,487       570,246,925
 
     Stockholders' equity                        43,314,450        39,689,161
         Total liabilities and
           stockholders' equity                $676,175,937      $609,936,086
 
 
                       CONSOLIDATED STATEMENT OF OPERATIONS
                                    (Unaudited)
 
                                                     For the Three Months
                                                           March 31,
                                                    2001              2000
 
     Interest income                            $12,344,828        $8,038,559
     Interest expense                             7,111,715         3,840,932
 
     Net interest income                          5,233,113         4,197,627
     Provision for loan losses                      520,000           350,000
 
     Net interest income after
       provision for loan losses                  4,713,113         3,847,627
 
     Gain on sale of loans                          316,727           333,378
     Fee income                                     843,029           658,614
     Gain (loss) on sale of investment
      securities, net                               200,307               -
     Other income                                   232,600            31,228
 
     Non interest income                          1,592,663         1,023,220
 
     Employee compensation and benefits           2,014,684         1,658,386
     Premises, equipment and data
      processing                                  1,063,733           890,792
     Other expenses                                 935,362           572,119
 
     Non interest expense                         4,013,779         3,121,297
 
     Net income before taxes                      2,291,997         1,749,550
 
     Provision for income taxes                     694,300           574,000
 
     Net income                                  $1,597,697        $1,175,550
 
     BASIC EARNINGS PER SHARE                         $0.53             $0.44
     DILUTED EARNINGS PER SHARE                       $0.52             $0.44
     DIVIDENDS PER SHARE                              $0.12             $0.12
 
     WEIGHTED AVERAGE SHARES OUTSTANDING:
         BASIC                                    3,014,710         2,666,196
         DILUTED                                  3,080,519         2,688,171
     ACTUAL SHARES OUTSTANDING                    3,014,710         2,666,196
 
     CONTACT:  Patricia A. Ferrick, Senior VP and CFO of Southern Financial
 Bancorp. Inc., 540-349-3900, or fax, 540-349-3904.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X32126636
 
 SOURCE  Southern Financial Bancorp, Inc.