Heritage Financial 8-K Heritage Financial Group, Inc. to Present at the Sterne Agee 2012 Financial Institutions Investor Conference

Exhibit 99.1

Sterne Agee 2012 Financial Institutions
Investor Conference

Orlando - February 12-14, 2012

O. Leonard Dorminey
Chief Executive Officer

T. Heath FountainChief Financial Officer

1

CAUTIONARY STATEMENTS

This presentation contains forward-looking statements
about future financial performance, business plans and
strategies of Heritage Financial Group, Inc.Because
forward-looking statements involve risks and
uncertainties, actual results may differ materially from
those expressed or implied.Investors are cautioned not
to place undue reliance on these forward-looking
statements and are advised to carefully review the
discussion of forward-looking statements and risk factors
in documents that the Company files with the Securities
and Exchange Commission, including the Company’s
most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q.

2

EXECUTIVE MANAGEMENT TEAM

Name	Position	Years in Banking	Years with HBOS
O. Leonard Dorminey	Chief Executive Officer	34	10
T. Heath Fountain	Chief Financial Officer and Chief Administrative Officer	11	8
David A. Durland	Chief Banking Officer	29	1
Carol W. Slappey	President - Albany Region & Chief Retail Administration Officer	38	18
O. Mitchell Smith	Chief Credit Officer	34	6

3

MARKET FOOTPRINT

AL

GA

FL

ALBANY

OCALA

LAKE CITY

Banking

Mortgage

Investments

4

DISCIPLINED APPROACH TO GROWTH

lCompany began looking at merger and acquisition
opportunities after the capital raise in 2005

lIn-house due diligence team with experience at other
acquisitive institutions

lRigorous due diligence process

lFrom 2006 - 2008, walked away from many M&A
opportunities, primarily due to pricing and credit quality

lDuring that time period, the company opted to use
dividends and stock buybacks as a better method to
deploy capital

lIn 2009, started M&A activity due to attractive pricing on
branch purchases and FDIC-assisted opportunities

5

EXPANDING FRANCHISE 2006-2009

lExpanded into Ocala, Florida in 2006 with de novo
branch

Ø$47.0 million in loans

Ø$62.9 million in deposits

lFDIC-assisted acquisition of The Tattnall Bank in
December 2009

ØNo loss-share - $15 million discount

Ø$37 million in loans and OREO

Ø$56 million in deposits

lLake City, Florida branch purchase in December 2009

Ø$10 million in loans

Ø$41 million in deposits

6

EXPANDING FRANCHISE 2010-2011

lFive branches in Georgia in May 2010

Ø$52 million in loans

Ø$98 million in deposits (only $21 million in CDs)

lExpanded into Valdosta in June 2010 with de novo branch

Ø$46.3 million in loans

Ø$19.2 million in deposits

lMortgage origination expansion

ØHistorically in Albany and Statesboro as a broker

ØHired an experienced back office team to originate as a correspondent
in January 2011

ØHave 20 originators in 11 offices in Georgia and Florida

ØAbility to recruit experienced mortgage lenders

ØOriginated $93.9 million in loans

ØRevenue of $2.6 million in 2011

7

EXPANDING FRANCHISE 2011

lFDIC-assisted acquisition of Citizens Bank of Effingham
on February 18

Ø3 branches in Effingham county and one branch in Chatham
county (Savannah)

Ø$139 million in loans

Ø$156 million in core deposits

lFDIC-assisted acquisition of First Southern National
Bank on August 19

ØOne branch in Statesboro (in market acquisition)

Ø$108 million in loans

Ø$118 million in core deposits

8

EXECUTING OUR PLAN

lRaised capital in November 2010 primarily to expand
through FDIC-assisted acquisitions

lSuccessfully completed two FDIC-assisted
acquisitions in 2011

lBoth acquisitions have been fully integrated into
HeritageBank of the South

lContinued focus on core business

ØImproving credit quality

ØGrowing core loan portfolio

ØIncreasing mortgage and investment business

9

FINANCIAL HIGHLIGHTS

For the Quarter Ended
December 31, 2011

lNet income of $1.4
million or $0.16 per
diluted share

lNet interest margin of
4.19%

lAccretable discount
increased $4.0 million to
$12.8 million

For the Year Ended
December 31, 2011

lNet income of $3.8
million or $0.47 per
diluted share

lNet interest margin of
3.62%

lOrganic loan growth of
$36.8 million or 9%

10

2012 INITIATIVES

lPursue FDIC-assisted acquisition opportunities

ØCompany has identified 17 banks with total assets of $4.9
billion as potential FDIC-assisted acquisition opportunities

lExpand mortgage and investment platform within
our footprint

lImprove operating efficiency in our branch network
and back office operations

lDiversified capital management strategy

ØDividends

ØBuybacks

ØGrowth

11

KEY INVESTMENT POINTS

lGrowth opportunities

ØFDIC-assisted acquisitions

ØBranch and open bank acquisitions

ØAbility to attract and hire talented bankers

lAcquirer with a proven ability to do deals

lDisciplined approach to acquisitions and growth

lStrong asset quality in a difficult environment

lExperienced management team and market leaders

lDiversified loan portfolio

lSolid core deposit franchise

RECENT
ACQUISITION DATA

13

CITIZENS ACQUISITION

l$139 million in loans

l$156 million in core deposits

l80/20 loss-share agreement

l$25.1 million discount

l$2.2 million bargain purchase gain

lFour branches between Savannah and Statesboro,
Georgia

lProvides entry into the Savannah MSA

lMarket is home to the Savannah port

14

CITIZENS ACQUISITION

(dollars in millions)	At Acquisition	As of Dec. 31, 2011
Unpaid principal balance of loans	$139.9	$109.0
Fair value as recorded	$72.7	$50.0
HBOS value as a % of unpaid principal balance	52%	46%
OREO at acquired book value	$21.7	$19.1
Fair value as recorded	$7.5	$13.0
HBOS value as a % of acquired book value	35%	68%

15

FIRST SOUTHERN ACQUISITION

l$108 million in loans

l$118 million in core deposits

l80/20 loss-share agreement

l$16.3 million discount

l$2.0 million bargain purchase gain

lSingle location in Statesboro, Georgia

lSignificant cost savings by combining branches

lBoosts the Bank’s marketing ranking, in terms of
deposit market share, into the top four banks in
Statesboro

16

FIRST SOUTHERN ACQUISITION

(dollars in millions)	At Acquisition	As of Dec. 31, 2011
Unpaid principal balance of loans	$108.0	$99.5
Fair value as recorded	$68.1	$61.0
HBOS value as a % of unpaid principal balance	63%	61%
OREO at acquired book value	$8.7	$7.9
Fair value as recorded	$4.7	$3.9
HBOS value as a % of acquired book value	54%	49%

FINANCIAL DATA

18

LOAN PORTFOLIO

Total Portfolio - $434.4 million

As of December 31, 2011

As of December 31, 2008

Commercial
Business

12%

Consumer

16%

Real Estate

One- to Four-Family

25%

Real Estate
Commercial
17%

Real Estate

Multi-Family
4%

Real Estate

Farmland

4%

Real Estate

Construction
and Land Loans

14%

Real Estate

One- to

Four-Family

Junior Liens

and Revolving

8%

Total Portfolio - $302.5 million

Excludes loans acquired in FDIC-assisted acquisitions.

19

ASSET & CREDIT QUALITY TRENDS

Accruing Criticized Loans

Accruing Classified Loans

Nonaccrual Loans

Past Due Loans (30-89 days)

$9.5

$9.7

$12.2

$0.8

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

$4.8

$13.9

$9.9

$1.9

$7.3

$13.7

$9.1

$1.2

$5.8

$13.1

$8.6

$0.7

$6.4

$13.1

$8.0

$1.5

$9.4

$13.5

$7.0

$0.4

Excludes loans acquired in FDIC-assisted acquisitions.

($ in millions)

20

SECURITIES PORTFOLIO

Municipals
18%

GSE
18%

Corporate

and other
1%

December 31, 2011

GSE MBS

58%

Total Portfolio - $259.0 million

SBA
5%

21

DEPOSIT PORTFOLIO

Noninterest-
Bearing Demand
9%

Interest-

Bearing

Demand
17%

Savings and

Money-markets
39%

As of December 31, 2011

As of December 31, 2008

Time
Deposits

35%

Noninterest-
Bearing Demand
6%

Interest-
Bearing
Demand
14%

Savings and Money
-markets
31%

Total Deposits - $338.5 million

Total Deposits - $884.2 million

22

BALANCE SHEET TRENDS

Net Loans

2005

2006

2007

2008

2009

2010

2011

$560.6

$419.0

$328.1

$297.5

$300.3

$272.7

$250.5

Total Deposits

2005

2006

2007

2008

2009

2010

2011

$884.2

$534.2

$426.6

$338.5

$330.6

$299.2

$238.6

Total Assets

2005

2006

2007

2008

2009

2010

2011

$1,089.9

$755.4

$571.9

$502.1

$468.7

$413.3

$363.8

($ in millions)

23

CAPITAL RATIOS

22.1%

20.9%

10.9%

10.0%

6.0%

5.0%

12.1%

14.9%

5.9%

Tier 1 Leverage

Tier 1 Risk-based

Total Risk-based

Heritage Financial Group, Inc.

To be well-capitalized

Excess

December 31, 2011

NASDAQ: HBOS