Heritage Financial Group Announces Agreement To Dispose Of Its Largest Nonperforming Asset
Because of the timing of these developments, the pending sale of the property and the work needed to revise the Company's financial statements for filing with the 2009 Annual Report on Form 10-K, the Company today will file a Form 12b-25 – Notification of Late Filing for its Form 10-K.
As a result of the additional amount, the total provision for loan losses for the fourth quarter of 2009 will be $3.7 million compared with a previously reported provision of $1.7 million. The total provision for the full year 2009 will be $7.5 million compared with a previously reported provision of $5.5 million. The net loss for the fourth quarter of 2009 will be $1.7 million or $0.17 per diluted share, up from the previously reported net loss of $418,000 or $0.04 per diluted share. The net loss for the full year 2009 will be $1.7 million or $0.16 per diluted share, up from the previously reported net loss of $336,000 or $0.03 per diluted share. Total assets as of December 31, 2009, will be $571.9 million versus the previously reported $573.2 million, and total stockholders' equity will be $60.8 million compared with the previously reported $62.1 million. The full effects of the subsequent event on the Company's financial condition and results of operations as of and for the year ended December 31, 2009, will be described in the Form 10-K, when filed. Highlights of the Company's financial condition and results of operations, as revised, are included in tables at the end of this news release.
Commenting on the announcement, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, said, "Although we regret the need to revise our previously reported results, this subsequent event reflects the ongoing difficult and very fluid nature of any effort to establish values on certain acquisition and development loans in the current environment. We have worked steadily to reduce our exposure to acquisition and development loans, which accounted for only 9% of our core loan portfolio – down from 17% two years earlier. With respect to this specific loan, our most significant nonperforming asset, we have moved aggressively to take possession of the property through foreclosure, identify a buyer and execute an agreement to sell the property, which we believe essentially brings this process to a conclusion and puts this nonperforming loan behind us."
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