Heritage Financial Group Second Quarter Net Income Increases 93% To $297,000 Or $0.03 Per Diluted Share
Heritage Financial Group (NASDAQ: HBOS), the holding company for HeritageBank of the South, today announced improved financial results for the second quarter and six months ended June 30, 2010. The Company's second quarter net income increased 93% to $297,000 or $0.03 per diluted share compared with net income of $154,000 or $0.02 per diluted share for the year-earlier quarter. For the six months ended June 30, 2010, net income increased 99% to $1,096,000 or $0.11 per diluted share compared with $549,000 or $0.05 per diluted share in the year-earlier period.
Other financial highlights of the quarter included significant growth in loans and deposits, largely reflecting the acquisition of eight branch locations during the past year. Concurrent with this growth, credit quality, as indicated by the level of nonperforming assets, has remained relatively stable since year end and has improved significantly from the year-earlier period.
Operationally, the Company continued to take advantage of prudent expansion opportunities in the second quarter and to build its management team to lead its growth in new markets. In May, the Company completed the purchase of five Park Avenue Bank branches in Georgia and named a new market executive for its Southeast Georgia region. The bank opened another new market in Georgia by establishing a new loan production office in Valdosta, after attracting a seasoned and locally experienced team of commercial and retail bankers in that market. This loan production office officially became a branch of HeritageBank of the South on July 5, 2010.
Commenting on the results, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, said, "We are pleased to report continued momentum in our operations and expansion activities, which have translated into earnings growth for the second quarter and first half of 2010. These solid results, which are especially gratifying considering the ongoing weakness that we see in so many aspects of the economy, also reflect continuing stability in credit quality after nonperforming loans and assets peaked in 2009. Obviously, we recognize the risk of deteriorating credit quality remains until employment and home prices begin to improve and, as a result, credit costs likely will continue at elevated levels for at least the near term. Still, we are pleased with the overall trends we are seeing in our loan portfolio.
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