Exhibit 99
Heritage Financial Group Reports Fourth Quarter Results
Management to Participate in Upcoming Investor Meetings Surrounding the Sterne Agee Financial Services Conference
ALBANY, Ga.--(BUSINESS WIRE)--February 5, 2010--Heritage Financial Group (NASDAQ: HBOS), the holding company for HeritageBank of the South, today reported financial results for the fourth quarter and year ended December 31, 2009. Even though high credit costs related to recessionary conditions continue to pressure earnings, the Company's announced fourth quarter results highlighted a number of fundamental improvements that will have a positive effect on future operations, including a significant increase in net interest margin versus the year-earlier period, as well as substantial loan and deposit growth attributable largely to fourth quarter 2009 acquisition activity.
For the fourth quarter, the Company's net loss totaled $418,000 or $0.04 per diluted share, improving on a sequential quarter basis from a net loss of $467,000 or $0.05 per diluted share in the third quarter of 2009. In the fourth quarter of 2008, the Company reported net income of $232,000 or $0.02 per diluted share. For 2009, the Company's net loss totaled $336,000 or $0.03 per diluted share compared with a net loss of $262,000 or $0.03 per diluted share for 2008.
Separately, Heritage Financial Group announced that its management will participate in a series of meetings with institutional investors and others in connection with the Sterne Agee Financial Services Conference on February 9-10, 2010. The Company's presentation to these investors will be available at the investor relations section of the Company's website on Tuesday, February 9, 2010.
Commenting on the results, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, said, "Although we are disappointed to report a loss for the fourth quarter and full year 2009, we know the severity of the economic downturn of the past year and acknowledge the challenges that it has presented for the banking industry and our borrowers. With declining real estate values, extraordinarily high unemployment and tough business conditions all around, it is difficult to avoid the higher credit losses for 2009 that most banks face. Nevertheless, we are beginning to see increasing signs of stability in our loan portfolio – indications that problem loans have leveled off or are nearing a peak, as evidenced by trends in our criticized and classified loans. Although we have more work to do to resolve problem loans in our portfolio, we are cautiously optimistic that the credit cycle is approaching a trough for the Company and that credit costs will stabilize and begin to improve in 2010.
"Additionally, given an improving net interest margin going into the new year, accompanied by significant loan and deposit growth from new market expansion and ongoing solid market share in Albany and Ocala, we believe the Company is well positioned as we enter 2010," Dorminey continued. "Our efforts to hold down expenses also should contribute to improved results in the coming year."
At the end of the fourth quarter of 2009, Heritage Financial Group's capital levels remained significantly above the levels required to be considered "well-capitalized" under regulatory standards – the highest capital rating category a financial institution can achieve. The Company's total risk-based capital ratio at December 31, 2009, was 17.0%, significantly exceeding the required minimum of 10% to be considered a well-capitalized institution. The ratio of tangible common equity to total tangible assets (both non-GAAP measures – see reconciliation to closest GAAP measures later in this release) was 10.6% as of December 31, 2009. The Company provides this ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.
Dorminey noted that the Company's strong capital position has enabled it to take advantage of attractive expansion opportunities. Recently, the Company purchased a branch office in Lake City, adding a second market in Florida to complement the Company's 2006 expansion into the state with de novo branching in Ocala. Lake City is expected to fill in the Company's footprint between Albany and Ocala, and added approximately $10 million in loans and $41 million in deposits to the Bank. In December 2009, the Company also entered into a definitive whole-bank purchase and assumption agreement with the Federal Deposit Insurance Corporation to acquire The Tattnall Bank, a $60 million full-service bank based in Reidsville, Georgia, with a second location in Collins, Georgia. As a result of that acquisition, HeritageBank of the South acquired $39 million in loans and other real estate and assumed approximately $54 million in deposits. This transaction did not involve a loss-share agreement, but was subject to a purchase discount by the FDIC totaling $15 million. "We believe we are well positioned to take advantage of additional opportunities as they arise in this turbulent environment," Dorminey added, "and we continue to consider FDIC-assisted and other bank and branch acquisitions that present acceptable credit risk characteristics and make sense from a business and market expansion standpoint."
Net interest income for the fourth quarter increased 15% to $3,921,000 from $3,416,000 in the same quarter last year, primarily reflecting an improvement in net interest margin. The Company's net interest margin increased 63 basis points to 3.72% in the fourth quarter of 2009 compared with 3.09% in the year-earlier period as the Company's cost of funds have re-priced to more fully reflect the year-long decline in interest rates. On a linked-quarter basis, net interest margin increased four basis points in the fourth quarter from 3.68% in the third quarter of 2009. Net interest income for 2009 declined 1% to $14,607,000 from $14,701,000 for 2008 primarily because of a lower level of interest-earning assets. The Company's net interest margin was 3.49% for 2009, reflecting an increase of six basis points from 3.43% for 2008.
Nonperforming assets and nonperforming loans totaled $13,358,000 and $11,563,000, respectively, at December 31, 2009, and included nonperforming assets and nonperforming loans of $1,831,000 and $1,226,000, respectively, associated with the Company's FDIC acquired portfolio that was acquired in December 2009. The acquired portfolio was not covered by a loss-share agreement, but was subject to a purchase discount totaling $15 million. In order to provide a comparable analysis of credit quality issues, the Company excludes the FDIC acquired loan portfolio from the following discussion in order to focus on its core loan portfolio, which is equivalent to prior reported periods.
Nonperforming assets in the core portfolio declined to $11,527,000 at December 31, 2009, from $13,888,000 at September 30, 2009, primarily reflecting charge-offs in the fourth quarter of 2009 and a moderation in the rate at which loans are entering non-performing status. Nonperforming loans in the core portfolio at the end of the fourth quarter declined to $10,337,000 from $12,990,000 in the third quarter of 2009, again reflecting loan charge-offs during the fourth quarter. Other real estate owned (OREO) and repossessed assets increased to $1,190,000 at the end of the fourth quarter from $898,000 at the end of the third quarter of 2009, reflecting the migration of certain property to OREO status. Nonperforming loans were 3.30% of total loans as of December 31, 2009, versus 4.34% of total loans at September 30, 2009. Net charge-offs to average outstanding loans in the total portfolio, on an annualized basis, were 3.36% for the fourth quarter of 2009 versus 0.29% for the third quarter of 2009 and 1.58% in the year-earlier period.
Even though the Company has relatively little exposure to acquisition, construction and development loans, with those representing only 10% of its core portfolio at December 31, 2009, and with criticized and classified loans remaining relatively stable over the past several months, management believes that nonperforming assets and net charge-offs will likely remain at elevated levels, at least in the near term, because of the continued weakness in the economy. Management continues to work to identify problem credits and has been increasing specific reserves for loan losses in anticipation of further credit quality issues, and to adjust the values of several large loans, previously classified as nonperforming, that are anticipated to reach some form of resolution in the coming months. Because of this ongoing and proactive process, the Company's provision for loan losses increased to $1,700,000 for the fourth quarter of 2009 from $950,000 in the year-earlier period, but was down from $2,500,000 in the third quarter of 2009. For 2009, the provision for loan losses was $5,500,000 versus $3,350,000 for 2008. At December 31, 2009, the allowance for loan losses represented 2.12% of total loans outstanding, down from 2.68% of total loans outstanding at September 30, 2009, but up from 1.64% of total loans outstanding at December 31, 2008.
Noninterest income declined 3% to $1,859,000 for the fourth quarter of 2009 from $1,923,000 in the year-earlier quarter. The current-year amount included gains on the sale of securities totaling $73,000 resulting from the sale of longer-term securities, as the Company essentially completed the repositioning of its investment portfolio in preparation for rising interest rates, while the prior-year period reflected gains on the sale of securities of $215,000, which more than offset impairment losses on securities of $100,000 in the year-earlier quarter. Noninterest income for 2009 increased 70% to $7,787,000 from $4,588,000 for 2008, with 2009 including gains of $909,000 on the sale of securities versus similar gains of $235,000 in 2008. The prior year amount also included impairment losses on securities of $3,119,000.
Noninterest expense for the fourth quarter of 2009 increased 18% to $4,965,000 from $4,207,000 in the fourth quarter of 2008, resulting primarily from higher FDIC insurance premiums in the current year. The increase also reflected an impairment charge of $502,000 on a corporate building that is under contract for sale, as well as an ongoing high level of OREO-related write-downs and expenses. Noninterest expense rose 5% to $18,271,000 for 2009 from $17,429,000 for 2008. This increase primarily also reflected higher regulatory fees and the previously mentioned impairment of a corporate building. The Company's efficiency ratio was 81.59% for 2009 versus 90.36% for 2008.
The Company's total assets increased 14% to $573,247,000 at December 31, 2009, from $502,058,000 at December 31, 2008, reflecting the Company's recent acquisition activities. Gross loans increased 11% to $337,239,000 at December 31, 2009, from $302,488,000 at December 31, 2008. Deposits rose 26% to $426,607,000 at December 31, 2009, from $338,546,000 at the end of 2008. Total stockholders' equity of $62,133,000 at December 31, 2009, was down slightly from $62,213,000 at December 31, 2008.
Heritage Financial Group is the mid-tier holding company for HeritageBank of the South, a community-oriented bank serving primarily South Georgia and North Central Florida through 10 full-service banking offices. As of December 31, 2009, the Company reported total assets of approximately $573.2 million and total stockholders' equity of approximately $62.1 million. For more information about the Company, visit HeritageBank of the South on the Web at www.eheritagebank.com, and see Investor Relations under About Us.
Heritage, MHC, a mutual holding company formed in 2002, holds approximately 76% of the shares of Heritage Financial Group. The remaining 24% of Heritage Financial Group's shares are held by public stockholders.
Except for historical information contained herein, the matters included in this news release and other information in the Company's filings with the Securities and Exchange Commission may contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995 and include this statement for purposes of these safe harbor provisions. Further information concerning the Company and its business, including additional factors that could materially affect our financial results, is included in our other filings with the SEC.
HERITAGE FINANCIAL GROUP Tangible Common Equity Ratio (Unaudited) (Dollars in thousands, except per share amounts) |
|
| | | Dec. 31, 2009 | | | Sept. 30, 2009 | | | Dec. 31, 2008 |
| Total stockholders' equity | | | $ | 62,133 | | | | $ | 62,823 | | | | $ | 62,213 | |
| Less intangible assets | | | | 1,571 | | | | | 1,000 | | | | | 1,000 | |
| Tangible common equity | | | | 60,562 | | | | | 61,823 | | | | | 61,213 | |
| | | | | | | | | |
| Total assets | | | | 573,247 | | | | | 470,458 | | | | | 502,058 | |
| Less intangible assets | | | | 1,571 | | | | | 1,000 | | | | | 1,000 | |
| Tangible assets | | | | 571,676 | | | | | 469,458 | | | | | 501,058 | |
| | | | | | | | | |
| Total stockholders' equity to total assets | | | | 10.8 | % | | | | 13.4 | % | | | | 12.4 | % |
| Tangible common equity ratio | | | | 10.6 | % | | | | 13.2 | % | | | | 12.2 | % |
| |
HERITAGE FINANCIAL GROUP Unaudited Financial Highlights (In thousands, except per share amounts) |
| |
| | | Fourth Quarter Ended December 31, | | | Year Ended December 31, |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Interest income | | | $ | 5,835 | | | | $ | 6,548 | | | | $ | 23,401 | | | | $ | 27,195 | |
| Interest expense | | | | 1,914 | | | | | 3,132 | | | | | 8,794 | | | | | 12,494 | |
| Net interest income | | | | 3,921 | | | | | 3,416 | | | | | 14,607 | | | | | 14,701 | |
| Provision for loan losses | | | | 1,700 | | | | | 950 | | | | | 5,500 | | | | | 3,350 | |
| Net interest income after provision for loan losses | | | | 2,221 | | | | | 2,466 | | | | | 9,107 | | | | | 11,351 | |
| Noninterest income | | | | 1,859 | | | | | 1,923 | | | | | 7,787 | | | | | 4,588 | |
| Noninterest expense | | | | 4,965 | | | | | 4,207 | | | | | 18,271 | | | | | 17,429 | |
| Loss before income taxes | | | | (885 | ) | | | | 182 | | | | | (1,377 | ) | | | | (1,490 | ) |
| Income tax benefit | | | | (467 | ) | | | | (50 | ) | | | | (1,041 | ) | | | | (1,228 | ) |
| Net income (loss) | | | $ | (418 | ) | | | $ | 232 | | | | $ | (336 | ) | | | $ | (262 | ) |
| Net income (loss) per share: | | | | | | | | | | | | |
| Basic | | | $ | (0.04 | ) | | | $ | 0.02 | | | | $ | (0.03 | ) | | | $ | (0.03 | ) |
| Diluted | | | $ | (0.04 | ) | | | $ | 0.02 | | | | $ | (0.03 | ) | | | $ | (0.03 | ) |
| Weighted average shares outstanding: | | | | | | | | | | | | |
| Basic | | | | 10,079 | | | | | 10,128 | | | | | 10,055 | | | | | 10,209 | |
| Diluted | | | | 10,079 | | | | | 10,128 | | | | | 10,055 | | | | | 10,209 | |
| Dividends declared per share | | | $ | 0.08 | | | | $ | 0.07 | | | | $ | 0.32 | | | | $ | 0.28 | |
| |
| | | Dec. 31, 2009 | | | Sept. 30, 2009 | | | Dec. 31, 2008 |
| Total assets | | | $ | 573,247 | | | | $ | 470,458 | | | | $ | 502,058 | |
| Cash and cash equivalents | | | | 13,629 | | | | | 12,680 | | | | | 10,160 | |
| Interest-bearing deposits in banks | | | | 44,529 | | | | | 5,075 | | | | | 746 | |
| Securities available for sale | | | | 120,527 | | | | | 101,338 | | | | | 116,141 | |
| Loans receivable | | | | 337,239 | | | | | 299,296 | | | | | 302,488 | |
| Allowance for loan losses | | | | 7,160 | | | | | 8,028 | | | | | 4,951 | |
| Total deposits | | | | 426,607 | | | | | 322,311 | | | | | 338,546 | |
| Federal Home Loan Bank advances | | | | 42,500 | | | | | 42,500 | | | | | 52,500 | |
| Stockholders' equity | | | | 62,133 | | | | | 62,823 | | | | | 62,213 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | Fourth Quarter Ended | | | Year Ended |
| | | December 31, | | | December 31, |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Income Statement Data | | | | | | | | | | | | |
Interest income | | | | | | | | | | | | |
| Loans | | | $ | 4,834 | | | | $ | 4,935 | | | | $ | 18,555 | | | | $ | 20,882 | |
| Securities - taxable | | | | 682 | | | | | 1,267 | | | | | 3,604 | | | | | 4,890 | |
| Securities - nontaxable | | | | 292 | | | | | 273 | | | | | 1,174 | | | | | 1,176 | |
| Federal funds sold | | | | 14 | | | | | 72 | | | | | 54 | | | | | 232 | |
| Interest bearing deposits in banks | | | | 13 | | | | | 1 | | | | | 14 | | | | | 15 | |
| Total interest income | | | | 5,835 | | | | | 6,548 | | | | | 23,401 | | | | | 27,195 | |
Interest expense | | | | | | | | | | | | |
| Deposits | | | | 1,422 | | | | | 2,289 | | | | | 6,472 | | | | | 9,043 | |
| Other borrowings | | | | 492 | | | | | 843 | | | | | 2,322 | | | | | 3,451 | |
| Total interest expense | | | | 1,914 | | | | | 3,132 | | | | | 8,794 | | | | | 12,494 | |
| Net interest income | | | | 3,921 | | | | | 3,416 | | | | | 14,607 | | | | | 14,701 | |
| Provision for loan losses | | | | 1,700 | | | | | 950 | | | | | 5,500 | | | | | 3,350 | |
| Net interest income after provision for loan losses | | | | 2,221 | | | | | 2,466 | | | | | 9,107 | | | | | 11,351 | |
Non-interest income | | | | | | | | | | | | |
| Service charges on deposit accounts | | | | 952 | | | | | 1,008 | | | | | 3,547 | | | | | 3,958 | |
| Other service charges, fees & commissions | | | | 345 | | | | | 298 | | | | | 1,406 | | | | | 1,272 | |
| Brokerage fees | | | | 252 | | | | | 259 | | | | | 914 | | | | | 1,030 | |
| Mortgage origination fees | | | | 69 | | | | | 85 | | | | | 344 | | | | | 400 | |
| Bank owned life insurance | | | | 156 | | | | | 151 | | | | | 621 | | | | | 495 | |
| Gain (loss) on sale of securities | | | | 73 | | | | | 215 | | | | | 909 | | | | | 235 | |
| Impairment loss on securities | | | | - | | | | | (100 | ) | | | | - | | | | | (3,119 | ) |
| Other | | | | 12 | | | | | 7 | | | | | 46 | | | | | 317 | |
| Total non-interest income | | | | 1,859 | | | | | 1,923 | | | | | 7,787 | | | | | 4,588 | |
Non-interest expense | | | | | | | | | | | | |
| Salaries and employee benefits | | | | 2,179 | | | | | 2,109 | | | | | 8,899 | | | | | 8,988 | |
| Equipment | | | | 225 | | | | | 303 | | | | | 985 | | | | | 1,217 | |
| Occupancy | | | | 296 | | | | | 337 | | | | | 1,198 | | | | | 1,204 | |
| Advertising & marketing | | | | 94 | | | | | 153 | | | | | 439 | | | | | 496 | |
| Legal & accounting | | | | 102 | | | | | 130 | | | | | 493 | | | | | 528 | |
| Consulting & other professional fees | | | | 75 | | | | | 65 | | | | | 297 | | | | | 318 | |
| Director fees & retirement | | | | 93 | | | | | 92 | | | | | 553 | | | | | 552 | |
| Telecommunications | | | | 70 | | | | | 59 | | | | | 239 | | | | | 258 | |
| Supplies | | | | 46 | | | | | 30 | | | | | 177 | | | | | 177 | |
| Data processing fees | | | | 461 | | | | | 325 | | | | | 1,606 | | | | | 1,300 | |
| Loss on sale and write-downs | | | | | | | | | | | | |
| of other real estate owned | | | | 38 | | | | | 115 | | | | | 422 | | | | | 386 | |
| Foreclosed asset expenses | | | | 85 | | | | | 64 | | | | | 257 | | | | | 229 | |
| FDIC insurance and other regulatory fees | | | | 371 | | | | | 71 | | | | | 872 | | | | | 267 | |
| Impairment loss on premises held for sale | | | | 502 | | | | | - | | | | | 502 | | | | | - | |
| Other operating | | | | 328 | | | | | 354 | | | | | 1,332 | | | | | 1,509 | |
| Total non-interest expense | | | | 4,965 | | | | | 4,207 | | | | | 18,271 | | | | | 17,429 | |
| Income (loss) before taxes | | | | (885 | ) | | | | 182 | | | | | (1,377 | ) | | | | (1,490 | ) |
| Applicable income tax (benefit) | | | | (467 | ) | | | | (50 | ) | | | | (1,041 | ) | | | | (1,228 | ) |
| Net income (loss) | | | $ | (418 | ) | | | $ | 232 | | | | $ | (336 | ) | | | $ | (262 | ) |
| | | | | | | | | | | | |
| Weighted average shares - basic | | | | 10,079 | | | | | 10,128 | | | | | 10,055 | | | | | 10,209 | |
| Weighted average shares - diluted | | | | 10,079 | | | | | 10,128 | | | | | 10,055 | | | | | 10,209 | |
| | | | | | | | | | | | |
| Basic earnings (loss) per share | | | $ | (0.04 | ) | | | $ | 0.02 | | | | $ | (0.03 | ) | | | $ | (0.03 | ) |
| Diluted earnings (loss) per share | | | | (0.04 | ) | | | | 0.02 | | | | | (0.03 | ) | | | | (0.03 | ) |
| Cash dividend declared per share | | | | 0.08 | | | | | 0.07 | | | | | 0.32 | | | | | 0.28 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | | | | | | | Year Ended |
| | | | | | | | | December 31, |
| | | | | | | | | 2009 | | | 2008 |
| Balance Sheet Data (at period end) | | | | | | |
| Total loans | | | $ | 337,239 | | | | $ | 302,488 | |
| Allowance for loan losses | | | | 7,160 | | | | | 4,951 | |
| Intangible assets | | | | 1,571 | | | | | 1,000 | |
| Total assets | | | | 573,247 | | | | | 502,058 | |
| Non-interest bearing deposits | | | | 28,882 | | | | | 19,100 | |
| Interest bearing deposits | | | | 397,725 | | | | | 319,446 | |
| Federal home loan bank advances | | | | 42,500 | | | | | 52,500 | |
Federal funds purchased and securities sold under agreement to repurchase | | | | 32,843 | | | | | 41,497 | |
| Stockholders' equity | | | | 62,133 | | | | | 62,213 | |
| | | | | | | | | | | | |
| Total shares outstanding | | | | 11,454 | | | | | 11,452 | |
| Less treasury shares | | | | 1,055 | | | | | 993 | |
| Net shares outstanding | | | | 10,399 | | | | | 10,459 | |
| | | | | | | | | | | | |
| Shares held by Heritage, MHC | | | | 7,869 | | | | | 7,869 | |
| Unearned ESOP shares | | | | 242 | | | | | 286 | |
| | | | | | | | | | | | |
| Book value per share | | | $ | 6.12 | | | | $ | 6.12 | |
| Tangible book value per share (non-GAAP) | | | | 5.96 | | | | | 6.02 | |
| Market value per share | | | | 7.25 | | | | | 8.67 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Fourth Quarter Ended | | | Year Ended |
| | | December 31, | | | December 31, |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Average Balance Sheet Data | | | | | | | | | | | | |
| Average interest bearing deposits in banks | | | $ | 5,968 | | | | $ | 511 | | | | $ | 1,931 | | | | $ | 630 | |
| Average federal funds sold | | | | 21,607 | | | | | 31,031 | | | | | 21,102 | | | | | 14,295 | |
| Average investment securities | | | | 103,411 | | | | | 120,891 | | | | | 114,338 | | | | | 120,061 | |
| Average loans | | | | 305,728 | | | | | 305,979 | | | | | 299,399 | | | | | 310,985 | |
| Average earning assets | | | | 436,714 | | | | | 458,412 | | | | | 436,770 | | | | | 445,971 | |
| Average assets | | | | 494,903 | | | | | 507,673 | | | | | 491,275 | | | | | 490,668 | |
| Average noninterest bearing deposits | | | | 23,208 | | | | | 17,810 | | | | | 20,875 | | | | | 18,473 | |
| Average interest bearing deposits | | | | 325,547 | | | | | 325,151 | | | | | 313,445 | | | | | 308,260 | |
| Average total deposits | | | | 348,755 | | | | | 342,961 | | | | | 334,320 | | | | | 326,733 | |
Average federal funds purchased and securities sold under agreement to repurchase | | | | 33,827 | | | | | 39,161 | | | | | 40,113 | | | | | 32,504 | |
| Average Federal Home Loan Bank advances | | | | 42,572 | | | | | 56,317 | | | | | 47,268 | | | | | 60,800 | |
| Average interest bearing liabilities | | | | 401,946 | | | | | 420,629 | | | | | 400,826 | | | | | 401,564 | |
| Average stockholders' equity | | | | 63,081 | | | | | 61,464 | | | | | 63,087 | | | | | 63,990 | |
| | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | |
| Annualized return on average assets | | | | -0.34 | % | | | | 0.18 | % | | | | -0.07 | % | | | | -0.05 | % |
| Annualized return on average equity | | | | -2.65 | % | | | | 1.51 | % | | | | -0.53 | % | | | | -0.41 | % |
| Net interest margin | | | | 3.72 | % | | | | 3.09 | % | | | | 3.49 | % | | | | 3.43 | % |
| Net interest spread | | | | 3.57 | % | | | | 2.85 | % | | | | 3.31 | % | | | | 3.12 | % |
| Efficiency ratio | | | | 85.90 | % | | | | 78.80 | % | | | | 81.59 | % | | | | 90.36 | % |
| | | | | | | | | | | | |
| Capital Ratios | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | | 12.7 | % | | | | 12.1 | % | | | | 12.8 | % | | | | 13.0 | % |
| Tangible equity to tangible assets (non-GAAP) | | | | 10.6 | % | | | | 12.2 | % | | | | 10.6 | % | | | | 12.2 | % |
| Tier 1 leverage ratio | | | | 12.7 | % | | | | 12.6 | % | | | | 12.7 | % | | | | 12.6 | % |
| Tier 1 risk-based capital ratio | | | | 15.7 | % | | | | 17.0 | % | | | | 15.7 | % | | | | 17.0 | % |
| Total risk-based capital ratio | | | | 17.0 | % | | | | 18.4 | % | | | | 17.0 | % | | | | 18.4 | % |
| | | | | | | | | | | | |
| Other Information | | | | | | | | | | | | |
| Full-time equivalent employees | | | | 134 | | | | | 120 | | | | | 134 | | | | | 120 | |
| Number of full-service offices | | | | 10 | | | | | 8 | | | | | 10 | | | | | 8 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Income Statement Data | | | | | | | | | | | | | | | |
Interest income | | | | | | | | | | | | | | | |
| Loans | | | $ | 4,935 | | | | $ | 4,593 | | | | $ | 4,528 | | | $ | 4,600 | | | | $ | 4,834 | |
| Securities - taxable | | | | 1,267 | | | | | 1,226 | | | | | 915 | | | | 781 | | | | | 682 | |
| Securities - nontaxable | | | | 273 | | | | | 292 | | | | | 293 | | | | 296 | | | | | 292 | |
| Federal funds sold | | | | 72 | | | | | 17 | | | | | 16 | | | | 7 | | | | | 14 | |
| Interest bearing deposits in banks | | | | 1 | | | | | - | | | | | - | | | | 1 | | | | | 13 | |
| Total interest income | | | | 6,548 | | | | | 6,128 | | | | | 5,752 | | | | 5,685 | | | | | 5,835 | |
Interest expense | | | | | | | | | | | | | | | |
| Deposits | | | | 2,289 | | | | | 1,888 | | | | | 1,683 | | | | 1,479 | | | | | 1,422 | |
| Other borrowings | | | | 843 | | | | | 684 | | | | | 645 | | | | 500 | | | | | 492 | |
| Total interest expense | | | | 3,132 | | | | | 2,572 | | | | | 2,328 | | | | 1,979 | | | | | 1,914 | |
| Net interest income | | | | 3,416 | | | | | 3,556 | | | | | 3,424 | | | | 3,706 | | | | | 3,921 | |
| Provision for loan losses | | | | 950 | | | | | 800 | | | | | 500 | | | | 2,500 | | | | | 1,700 | |
| Net interest income after provision for loan losses | | | | 2,466 | | | | | 2,756 | | | | | 2,924 | | | | 1,206 | | | | | 2,221 | |
Non-interest income | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | | 1,008 | | | | | 808 | | | | | 837 | | | | 951 | | | | | 952 | |
| Other service charges, fees & commissions | | | | 298 | | | | | 360 | | | | | 362 | | | | 338 | | | | | 345 | |
| Brokerage fees | | | | 259 | | | | | 194 | | | | | 216 | | | | 252 | | | | | 252 | |
| Mortgage origination fees | | | | 85 | | | | | 106 | | | | | 104 | | | | 66 | | | | | 69 | |
| Bank owned life insurance | | | | 151 | | | | | 150 | | | | | 159 | | | | 155 | | | | | 156 | |
| Gain (loss) on sale of securities | | | | 215 | | | | | 21 | | | | | 345 | | | | 470 | | | | | 73 | |
| Impairment loss on securities | | | | (100 | ) | | | | - | | | | | - | | | | - | | | | | - | |
| Other | | | | 7 | | | | | 6 | | | | | 16 | | | | 12 | | | | | 12 | |
| Total non-interest income | | | | 1,923 | | | | | 1,645 | | | | | 2,039 | | | | 2,244 | | | | | 1,859 | |
Non-interest expense | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | | 2,109 | | | | | 2,198 | | | | | 2,227 | | | | 2,296 | | | | | 2,179 | |
| Equipment | | | | 303 | | | | | 273 | | | | | 266 | | | | 221 | | | | | 225 | |
| Occupancy | | | | 337 | | | | | 292 | | | | | 297 | | | | 312 | | | | | 296 | |
| Advertising & marketing | | | | 153 | | | | | 87 | | | | | 111 | | | | 147 | | | | | 94 | |
| Legal & accounting | | | | 130 | | | | | 118 | | | | | 155 | | | | 118 | | | | | 102 | |
| Consulting & other professional fees | | | | 65 | | | | | 62 | | | | | 91 | | | | 70 | | | | | 75 | |
| Director fees & retirement | | | | 92 | | | | | 153 | | | | | 153 | | | | 155 | | | | | 93 | |
| Telecommunications | | | | 59 | | | | | 62 | | | | | 54 | | | | 53 | | | | | 70 | |
| Supplies | | | | 30 | | | | | 38 | | | | | 46 | | | | 46 | | | | | 46 | |
| Data processing fees | | | | 325 | | | | | 330 | | | | | 383 | | | | 431 | | | | | 461 | |
Loss on sale and write-downs of other real estate owned | | | | 115 | | | | | 49 | | | | | 255 | | | | 80 | | | | | 38 | |
| Foreclosed asset expenses | | | | 64 | | | | | 45 | | | | | 48 | | | | 78 | | | | | 85 | |
| FDIC insurance and other regulatory fees | | | | 71 | | | | | 81 | | | | | 284 | | | | 136 | | | | | 371 | |
| Impairment loss on premises held for sale | | | | - | | | | | - | | | | | - | | | | - | | | | | 502 | |
| Other operating | | | | 354 | | | | | 326 | | | | | 372 | | | | 307 | | | | | 328 | |
| Total non-interest expense | | | | 4,207 | | | | | 4,114 | | | | | 4,742 | | | | 4,450 | | | | | 4,965 | |
| Income (loss) before taxes | | | | 182 | | | | | 287 | | | | | 221 | | | | (1,000 | ) | | | | (885 | ) |
| Applicable income tax (benefit) | | | | (50 | ) | | | | (108 | ) | | | | 66 | | | | (533 | ) | | | | (467 | ) |
| Net income (loss) | | | $ | 232 | | | | $ | 395 | | | | $ | 155 | | | $ | (467 | ) | | | $ | (418 | ) |
| | | | | | | | | | | | | | | |
| Weighted average shares - basic | | | | 10,128 | | | | | 10,026 | | | | | 10,040 | | | | 10,072 | | | | | 10,079 | |
| Weighted average shares - diluted | | | | 10,128 | | | | | 10,026 | | | | | 10,040 | | | | 10,072 | | | | | 10,079 | |
| | | | | | | | | | | | | | | |
| Basic earnings (loss) per share | | | $ | 0.02 | | | | $ | 0.04 | | | | $ | 0.02 | | | $ | (0.05 | ) | | | $ | (0.04 | ) |
| Diluted earnings (loss) per share | | | | 0.02 | | | | | 0.04 | | | | | 0.02 | | | | (0.05 | ) | | | | (0.04 | ) |
| Cash dividend declared per share | | | | 0.07 | | | | | 0.08 | | | | | 0.08 | | | | 0.08 | | | | | 0.08 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Balance Sheet Data (at period end) | | | | | | | | | | | | | | | |
| Total loans | | | $ | 302,488 | | | | $ | 298,151 | | | | $ | 295,881 | | | | $ | 299,296 | | | | $ | 337,239 | |
| Allowance for loan losses | | | | 4,951 | | | | | 5,435 | | | | | 5,747 | | | | | 8,028 | | | | | 7,160 | |
| Intangible assets | | | | 1,000 | | | | | 1,000 | | | | | 1,000 | | | | | 1,000 | | | | | 1,571 | |
| Total assets | | | | 502,058 | | | | | 490,992 | | | | | 470,985 | | | | | 470,458 | | | | | 573,247 | |
| Non-interest bearing deposits | | | | 19,100 | | | | | 18,721 | | | | | 18,747 | | | | | 18,811 | | | | | 28,882 | |
| Interest bearing deposits | | | | 319,446 | | | | | 302,771 | | | | | 305,177 | | | | | 303,500 | | | | | 397,725 | |
| Federal home loan bank advances | | | | 52,500 | | | | | 52,500 | | | | | 42,500 | | | | | 42,500 | | | | | 42,500 | |
Federal funds purchased and securities sold under agreement to repurchase | | | | 41,497 | | | | | 47,113 | | | | | 34,745 | | | | | 35,211 | | | | | 32,843 | |
| Stockholders' equity | | | | 62,213 | | | | | 62,421 | | | | | 62,132 | | | | | 62,823 | | | | | 62,133 | |
| | | | | | | | | | | | | | | |
| Total shares outstanding | | | | 11,452 | | | | | 11,452 | | | | | 11,452 | | | | | 11,452 | | | | | 11,454 | |
| Less treasury shares | | | | 993 | | | | | 1,041 | | | | | 1,042 | | | | | 1,042 | | | | | 1,055 | |
| Net shares outstanding | | | | 10,459 | | | | | 10,411 | | | | | 10,410 | | | | | 10,410 | | | | | 10,399 | |
| | | | | | | | | | | | | | | |
| Shares held by Heritage, MHC | | | | 7,869 | | | | | 7,869 | | | | | 7,869 | | | | | 7,869 | | | | | 7,869 | |
| Unearned ESOP shares | | | | 286 | | | | | 275 | | | | | 264 | | | | | 253 | | | | | 242 | |
| | | | | | | | | | | | | | | |
| Book value per share | | | $ | 6.12 | | | | $ | 6.16 | | | | $ | 6.12 | | | | $ | 6.19 | | | | $ | 6.12 | |
| Tangible book value per share (non-GAAP) | | | | 6.02 | | | | | 6.06 | | | | | 6.03 | | | | | 6.09 | | | | | 5.96 | |
| Market value per share | | | | 8.67 | | | | | 7.97 | | | | | 8.57 | | | | | 8.28 | | | | | 7.25 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Average Balance Sheet Data | | | | | | | | | | | | | | | |
| Average interest bearing deposits in banks | | | $ | 511 | | | | $ | 536 | | | | $ | 468 | | | | $ | 751 | | | | $ | 5,968 | |
| Average federal funds sold | | | | 31,031 | | | | | 26,693 | | | | | 24,362 | | | | | 11,746 | | | | | 21,607 | |
| Average investment securities | | | | 120,891 | | | | | 126,789 | | | | | 117,813 | | | | | 109,338 | | | | | 103,411 | |
| Average loans | | | | 305,979 | | | | | 298,705 | | | | | 296,363 | | | | | 296,800 | | | | | 305,728 | |
| Average earning assets | | | | 458,412 | | | | | 452,723 | | | | | 439,006 | | | | | 418,635 | | | | | 436,714 | |
| Average assets | | | | 507,673 | | | | | 504,814 | | | | | 493,868 | | | | | 471,517 | | | | | 494,903 | |
| Average noninterest bearing deposits | | | | 17,810 | | | | | 18,723 | | | | | 20,355 | | | | | 21,212 | | | | | 23,208 | |
| Average interest bearing deposits | | | | 325,151 | | | | | 319,283 | | | | | 306,540 | | | | | 302,408 | | | | | 325,547 | |
| Average total deposits | | | | 342,961 | | | | | 338,006 | | | | | 326,895 | | | | | 323,620 | | | | | 348,755 | |
Average federal funds purchased and securities sold under agreement to repurchase | | | | 39,161 | | | | | 44,793 | | | | | 45,927 | | | | | 35,903 | | | | | 33,827 | |
| Average Federal Home Loan Bank advances | | | | 56,317 | | | | | 52,500 | | | | | 51,500 | | | | | 42,500 | | | | | 42,572 | |
| Average interest bearing liabilities | | | | 420,629 | | | | | 416,576 | | | | | 403,967 | | | | | 380,811 | | | | | 401,946 | |
| Average stockholders' equity | | | | 61,464 | | | | | 62,879 | | | | | 63,413 | | | | | 62,975 | | | | | 63,081 | |
| | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | |
| Annualized return on average assets | | | | 0.18 | % | | | | 0.31 | % | | | | 0.13 | % | | | | -0.40 | % | | | | -0.34 | % |
| Annualized return on average equity | | | | 1.51 | % | | | | 2.51 | % | | | | 0.98 | % | | | | -2.97 | % | | | | -2.65 | % |
| Net interest margin | | | | 3.09 | % | | | | 3.31 | % | | | | 3.27 | % | | | | 3.68 | % | | | | 3.72 | % |
| Net interest spread | | | | 2.85 | % | | | | 3.10 | % | | | | 3.09 | % | | | | 3.49 | % | | | | 3.57 | % |
| Efficiency ratio | | | | 78.80 | % | | | | 79.10 | % | | | | 86.80 | % | | | | 74.79 | % | | | | 85.90 | % |
| | | | | | | | | | | | | | | |
| Capital Ratios | | | | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | | 12.1 | % | | | | 12.5 | % | | | | 12.8 | % | | | | 13.4 | % | | | | 12.7 | % |
| Tangible equity to tangible assets (non-GAAP) | | | | 12.2 | % | | | | 12.5 | % | | | | 13.0 | % | | | | 13.2 | % | | | | 10.6 | % |
| Tier 1 leverage ratio | | | | 12.6 | % | | | | 12.7 | % | | | | 12.9 | % | | | | 13.2 | % | | | | 12.7 | % |
| Tier 1 risk-based capital ratio | | | | 17.0 | % | | | | 17.8 | % | | | | 18.6 | % | | | | 18.0 | % | | | | 15.7 | % |
| Total risk-based capital ratio | | | | 18.4 | % | | | | 19.0 | % | | | | 19.8 | % | | | | 19.3 | % | | | | 17.0 | % |
| | | | | | | | | | | | | | | |
| Other Information | | | | | | | | | | | | | | | |
| Full-time equivalent employees | | | | 120 | | | | | 117 | | | | | 118 | | | | | 117 | | | | | 134 | |
| Number of full-service offices | | | | 8 | | | | | 8 | | | | | 8 | | | | | 8 | | | | | 10 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | | | | Fourth Quarter Ended | | | Twelve Months Ended |
| Total Portfolio | | | December 31, | | | December 31, |
| | | | | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Loans by Type | | | | | | | | | | | | |
| Construction and land loans | | | $ | 34,573 | | | | $ | 43,296 | | | | $ | 34,573 | | | | $ | 43,296 | |
| Farmland loans | | | | 16,387 | | | | | 11,093 | | | | | 16,387 | | | | | 11,093 | |
| Permanent 1 - 4 | | | | 86,511 | | | | | 74,203 | | | | | 86,511 | | | | | 74,203 | |
| Permanent 1 - 4 - junior liens and revolving | | | | 25,930 | | | | | 23,869 | | | | | 25,930 | | | | | 23,869 | |
| Multifamily | | | | 12,257 | | | | | 10,719 | | | | | 12,257 | | | | | 10,719 | |
| Nonresidential | | | | 81,047 | | | | | 52,477 | | | | | 81,047 | | | | | 52,477 | |
| Commercial business loans | | | | 48,578 | | | | | 37,489 | | | | | 48,578 | | | | | 37,489 | |
| Consumer and other loans | | | | 39,184 | | | | | 49,342 | | | | | 39,184 | | | | | 49,342 | |
| Fair market value adjustments | | | | (7,228 | ) | | | | - | | | | | (7,228 | ) | | | | - | |
| | | | | | | 337,239 | | | | | 302,488 | | | | | 337,239 | | | | | 302,488 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | 2.12 | % | | | | 1.64 | % | | | | 2.12 | % | | | | 1.64 | % |
| Allowance for loan losses to average loans | | | | 2.39 | % | | | | 1.59 | % | | | | 2.39 | % | | | | 1.59 | % |
| Allowance for loan losses to non-performing loans | | | | 61.92 | % | | | | 68.00 | % | | | | 61.92 | % | | | | 68.00 | % |
| Accruing past due loans | | | $ | 3,247 | | | | $ | 4,454 | | | | $ | 3,247 | | | | $ | 4,454 | |
| Nonaccrual loans | | | | 11,563 | | | | | 7,281 | | | | | 11,563 | | | | | 7,281 | |
| Loans - 90 days past due & still accruing | | | | - | | | | | - | | | | | - | | | | | - | |
| Total non-performing loans | | | | 11,563 | | | | | 7,281 | | | | | 11,563 | | | | | 7,281 | |
| OREO and repossessed assets | | | | 1,795 | | | | | 2,120 | | | | | 1,795 | | | | | 2,120 | |
| Total non-performing assets | | | | 13,358 | | | | | 9,401 | | | | | 13,358 | | | | | 9,401 | |
| Non-performing loans to total loans | | | | 3.43 | % | | | | 2.41 | % | | | | 3.43 | % | | | | 2.41 | % |
| Non-performing assets to total assets | | | | 2.33 | % | | | | 1.87 | % | | | | 2.33 | % | | | | 1.87 | % |
| Net charge-offs to average loans (annualized) | | | | 3.36 | % | | | | 1.58 | % | | | | 1.10 | % | | | | 0.91 | % |
| Net charge-offs | | | $ | 2,568 | | | | $ | 1,205 | | | | $ | 3,290 | | | | $ | 2,815 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Loans by Type | | | | | | | | | | | | | | | |
| Construction and land loans | | | $ | 43,296 | | | | $ | 36,926 | | | | $ | 31,414 | | | | $ | 31,762 | | | | $ | 34,573 | |
| Farmland loans | | | | 11,093 | | | | | 5,686 | | | | | 5,743 | | | | | 7,101 | | | | | 16,387 | |
| Permanent 1 - 4 | | | | 74,203 | | | | | 73,606 | | | | | 74,676 | | | | | 75,182 | | | | | 86,511 | |
| Permanent 1 - 4 - junior liens and revolving | | | | 23,869 | | | | | 23,677 | | | | | 23,697 | | | | | 23,556 | | | | | 25,930 | |
| Multifamily | | | | 10,719 | | | | | 10,637 | | | | | 10,596 | | | | | 10,899 | | | | | 12,257 | |
| Nonresidential | | | | 52,477 | | | | | 59,169 | | | | | 64,915 | | | | | 67,771 | | | | | 81,047 | |
| Commercial business loans | | | | 37,489 | | | | | 42,882 | | | | | 43,345 | | | | | 44,778 | | | | | 48,578 | |
| Consumer and other loans | | | | 49,342 | | | | | 45,568 | | | | | 41,494 | | | | | 38,424 | | | | | 39,184 | |
| Fair market value adjustments | | | | - | | | | | - | | | | | - | | | | | - | | | | | (7,228 | ) |
| | | | 302,488 | | | | | 298,151 | | | | | 295,880 | | | | | 299,473 | | | | | 337,239 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | 1.64 | % | | | | 1.82 | % | | | | 1.94 | % | | | | 2.68 | % | | | | 2.12 | % |
| Allowance for loan losses to average loans | | | | 1.62 | % | | | | 1.82 | % | | | | 1.94 | % | | | | 2.70 | % | | | | 2.34 | % |
| Allowance for loan losses to non-performing loans | | | | 68.00 | % | | | | 68.66 | % | | | | 47.48 | % | | | | 61.80 | % | | | | 61.92 | % |
| Accruing past due loans | | | $ | 4,454 | | | | $ | 4,054 | | | | $ | 1,275 | | | | $ | 1,277 | | | | $ | 3,247 | |
| Nonaccrual loans | | | | 7,281 | | | | | 7,916 | | | | | 12,105 | | | | | 12,990 | | | | | 11,563 | |
| Loans - 90 days past due & still accruing | | | | - | | | | | - | | | | | - | | | | | - | | | | | - | |
| Total non-performing loans | | | | 7,281 | | | | | 7,916 | | | | | 12,105 | | | | | 12,990 | | | | | 11,563 | |
| OREO and repossessed assets | | | | 2,120 | | | | | 1,403 | | | | | 907 | | | | | 898 | | | | | 1,795 | |
| Total non-performing assets | | | | 9,401 | | | | | 9,319 | | | | | 13,012 | | | | | 13,888 | | | | | 13,358 | |
| Non-performing loans to total loans | | | | 2.41 | % | | | | 2.66 | % | | | | 4.09 | % | | | | 4.34 | % | | | | 3.43 | % |
| Non-performing assets to total assets | | | | 1.87 | % | | | | 1.90 | % | | | | 2.76 | % | | | | 2.95 | % | | | | 2.33 | % |
| Net charge-offs to average loans (annualized) | | | | 1.58 | % | | | | 0.42 | % | | | | 0.26 | % | | | | 0.29 | % | | | | 3.36 | % |
| Net charge-offs | | | $ | 1,205 | | | | $ | 315 | | | | $ | 189 | | | | $ | 219 | | | | $ | 2,568 | |
| |
Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | | | | Fourth Quarter Ended | | | Twelve Months Ended |
| Core Portfolio | | | December 31, | | | December 31, |
| | | | | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Loans by Type | | | | | | | | | | | | |
| Construction and land loans | | | $ | 31,484 | | | | $ | 43,296 | | | | $ | 31,484 | | | | $ | 43,296 | |
| Farmland loans | | | | 9,013 | | | | | 11,093 | | | | | 9,013 | | | | | 11,093 | |
| Permanent 1 - 4 | | | | 81,055 | | | | | 74,203 | | | | | 81,055 | | | | | 74,203 | |
| Permanent 1 - 4 - junior liens and revolving | | | | 25,192 | | | | | 23,869 | | | | | 25,192 | | | | | 23,869 | |
| Multifamily | | | | 12,135 | | | | | 10,719 | | | | | 12,135 | | | | | 10,719 | |
| Nonresidential | | | | 71,159 | | | | | 52,477 | | | | | 71,159 | | | | | 52,477 | |
| Commercial business loans | | | | 45,836 | | | | | 37,489 | | | | | 45,836 | | | | | 37,489 | |
| Consumer and other loans | | | | 36,575 | | | | | 49,342 | | | | | 36,575 | | | | | 49,342 | |
| Fair market value adjustments | | | | 370 | | | | | - | | | | | 370 | | | | | - | |
| | | | | | $ | 312,819 | | | | $ | 302,488 | | | | | 312,819 | | | | | 302,488 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Accruing past due loans | | | $ | 1,826 | | | | $ | 4,454 | | | | $ | 1,826 | | | | $ | 4,454 | |
| Nonaccrual loans | | | | 10,337 | | | | | 7,281 | | | | | 10,337 | | | | | 7,281 | |
| Loans - 90 days past due & still accruing | | | | - | | | | | - | | | | | - | | | | | - | |
| Total non-performing loans | | | | 10,337 | | | | | 7,281 | | | | | 10,337 | | | | | 7,281 | |
| OREO and repossessed assets | | | | 1,190 | | | | | 2,120 | | | | | 1,190 | | | | | 2,120 | |
| Total non-performing assets | | | | 11,527 | | | | | 9,401 | | | | | 11,527 | | | | | 9,401 | |
| Non-performing loans to total loans | | | | 3.30 | % | | | | 2.41 | % | | | | 3.30 | % | | | | 2.41 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net charge-offs | | | $ | 2,568 | | | | $ | 1,205 | | | | $ | 3,290 | | | | $ | 2,815 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Loans by Type | | | | | | | | | | | | | | | |
| Construction and land loans | | | $ | 43,296 | | | | $ | 36,926 | | | | $ | 31,414 | | | | $ | 31,762 | | | | $ | 31,484 | |
| Farmland loans | | | | 11,093 | | | | | 5,686 | | | | | 5,743 | | | | | 7,101 | | | | | 9,013 | |
| Permanent 1 - 4 | | | | 74,203 | | | | | 73,606 | | | | | 74,676 | | | | | 75,182 | | | | | 81,055 | |
| Permanent 1 - 4 - junior liens and revolving | | | | 23,869 | | | | | 23,677 | | | | | 23,697 | | | | | 23,556 | | | | | 25,192 | |
| Multifamily | | | | 10,719 | | | | | 10,637 | | | | | 10,596 | | | | | 10,899 | | | | | 12,135 | |
| Nonresidential | | | | 52,477 | | | | | 59,169 | | | | | 64,915 | | | | | 67,771 | | | | | 71,159 | |
| Commercial business loans | | | | 37,489 | | | | | 42,882 | | | | | 43,345 | | | | | 44,778 | | | | | 45,836 | |
| Consumer and other loans | | | | 49,342 | | | | | 45,568 | | | | | 41,494 | | | | | 38,424 | | | | | 36,575 | |
| Fair market value adjustments | | | | - | | | | | - | | | | | - | | | | | - | | | | | 370 | |
| | | | 302,488 | | | | | 298,151 | | | | | 295,880 | | | | | 299,473 | | | | | 312,819 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Accruing past due loans | | | $ | 4,454 | | | | $ | 4,054 | | | | $ | 1,275 | | | | $ | 1,277 | | | | $ | 1,826 | |
| Nonaccrual loans | | | | 7,281 | | | | | 7,916 | | | | | 12,105 | | | | | 12,990 | | | | | 10,337 | |
| Loans - 90 days past due & still accruing | | | | - | | | | | - | | | | | - | | | | | - | | | | | - | |
| Total non-performing loans | | | | 7,281 | | | | | 7,916 | | | | | 12,105 | | | | | 12,990 | | | | | 10,337 | |
| OREO and repossessed assets | | | | 2,120 | | | | | 1,403 | | | | | 907 | | | | | 898 | | | | | 1,190 | |
| Total non-performing assets | | | | 9,401 | | | | | 9,319 | | | | | 13,012 | | | | | 13,888 | | | | | 11,527 | |
| Non-performing loans to total loans | | | | 2.41 | % | | | | 2.66 | % | | | | 4.09 | % | | | | 4.34 | % | | | | 3.30 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net charge-offs | | | $ | 1,205 | | | | $ | 315 | | | | $ | 189 | | | | $ | 219 | | | | $ | 2,568 | |
| |
| Heritage Financial Group |
| Fourth Quarter 2009 Earnings Release Supplement |
| (Dollars in thousands) |
| |
| | | | | | | | | | | | Twelve Months Ended |
FDIC Acquired Portfolio | | | December 31, |
| | | | | | | | | | | | 2009 | | | 2008 |
| Loans by Type | | | | | | |
| Construction and land loans | | | $ | 3,089 | | | | $ | - | |
| Farmland loans | | | | 7,374 | | | | | - | |
| Permanent 1 - 4 | | | | 5,456 | | | | | - | |
| Permanent 1 - 4 - junior liens and revolving | | | | 738 | | | | | - | |
| Multifamily | | | | 122 | | | | | - | |
| Nonresidential | | | | 9,888 | | | | | - | |
| Commercial business loans | | | | 2,742 | | | | | - | |
| Consumer and other loans | | | | 2,609 | | | | | - | |
| Fair market value adjustments | | | | (7,598 | ) | | | | - | |
| | | | | | | | | | | | | 24,420 | | | | | - | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Accruing past due loans | | | $ | 1,421 | | | | $ | - | |
| Nonaccrual loans | | | | 1,226 | | | | | - | |
| Loans - 90 days past due & still accruing | | | | - | | | | | - | |
| Total non-performing loans | | | | 1,226 | | | | | - | |
| OREO and repossessed assets | | | | 605 | | | | | - | |
| Total non-performing assets | | | | 1,831 | | | | | - | |
| Non-performing loans to total loans | | | | 7.50 | % | | | | - | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net charge-offs | | | $ | - | | | | | - | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | Five Quarter Comparison |
| | | 12/31/08 | | | 3/31/09 | | | 6/30/09 | | | 9/30/09 | | | 12/31/09 |
| Loans by Type | | | | | | | | | | | | | | | |
| Construction and land loans | | | - | | | - | | | - | | | | - | | | | $ | 3,089 | |
| Farmland loans | | | - | | | - | | | - | | | | - | | | | | 7,374 | |
| Permanent 1 - 4 | | | - | | | - | | | - | | | | - | | | | | 5,456 | |
| Permanent 1 - 4 - junior liens and revolving | | | - | | | - | | | - | | | | - | | | | | 738 | |
| Multifamily | | | - | | | - | | | - | | | | - | | | | | 122 | |
| Nonresidential | | | - | | | - | | | - | | | | - | | | | | 9,888 | |
| Commercial business loans | | | - | | | - | | | - | | | | - | | | | | 2,742 | |
| Consumer and other loans | | | - | | | - | | | - | | | | - | | | | | 2,609 | |
| Fair market value adjustments | | | - | | | - | | | - | | | | - | | | | | (7,598 | ) |
| | | - | | | - | | | - | | | | - | | | | | 24,420 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Accruing past due loans | | | - | | | - | | | - | | | | - | | | | $ | 1,421 | |
| Nonaccrual loans | | | - | | | - | | | - | | | | - | | | | | 1,226 | |
| Loans - 90 days past due & still accruing | | | - | | | - | | | - | | | | - | | | | | - | |
| Total non-performing loans | | | - | | | - | | | - | | | | - | | | | | 1,226 | |
| OREO and repossessed assets | | | - | | | - | | | - | | | | - | | | | | 605 | |
| Total non-performing assets | | | - | | | - | | | - | | | | - | | | | | 1,831 | |
| Non-performing loans to total loans | | | - | | | - | | | - | | | | - | | | | | 7.50 | % |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Net charge-offs | | | - | | | - | | | - | | | | - | | | | | 0.00 | % |
| | | | | | | | | | | | | | | |
Note: |
| Certain prior-period amounts have been reclassified to conform with current presentation. |
| For non-GAAP measures see reconciliation to closest GAAP measures contained in this press release. |
CONTACT:
Heritage Financial Group
T. Heath Fountain, 229-878-2055
Senior Vice President and Chief Financial Officer
