This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Heritage Financial Group Second Quarter Net Income Increases 93% To $297,000 Or $0.03 Per Diluted Share

Net charge-offs to average outstanding loans in the total portfolio, on an annualized basis, were 0.48% for the second quarter of 2010 versus 0.88% for the first quarter of 2010 and 0.26% in the year-earlier period. 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. Accordingly, the Company increased its provision for loan losses to $650,000 for the second quarter of 2010 from $500,000 in both the first quarter of 2010 and the year-earlier quarter. At June 30, 2010, the allowance for loan losses represented 1.54% of total loans outstanding versus 1.70% of total loans outstanding at March 31, 2010, and 1.94% of total loans outstanding at June 30, 2009.

Noninterest income declined 4% to $1,955,000 for the second quarter of 2010 from $2,039,000 in the year-earlier quarter, primarily reflecting reduced gains on the sale of available-for-sale securities, which more than offset increases in account charges and fees. Noninterest income for the first half of 2010 increased 2% to $3,766,000 from $3,684,000 in the year-earlier period, with the increase reflecting higher account charges and fees, as well as increased brokerage commissions, which together were partially offset by reduced gains on the sale of securities and lower mortgage origination fees.

Noninterest expense for the second quarter of 2010 increased 21% to $5,745,000 from $4,742,000 in the second quarter of 2009, as salaries and employee benefits increased from the year-earlier quarter due to the Company's expansion and the net acquisition of eight branch locations during the past year. Additionally, the Company incurred one-time conversion expenses of approximately $267,000 in the second quarter related to its acquisition of five Park Avenue Bank branches in May 2010. These higher expenses were offset partially by a swing to gains on the sale of OREO during the quarter from losses and write-downs on OREO in the year-earlier quarter. Noninterest expense for the six months ended June 30, 2010, rose 18% to $10,449,000 compared with $8,856,000 for the year-earlier period. Again, this increase reflected higher year-over-year personnel costs related to expansion, gains on the sale of OREO versus losses and write-downs in the first half of 2009, and conversion costs related to acquired branches. The Company's efficiency ratio was 86.38% and 81.18%, respectively, for the second quarter and six months ended June 30, 2010, versus 86.80% and 83.03%, respectively, in the year-earlier periods.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HBOS $27.00 1.00%
AAPL $123.44 -0.64%
FB $83.48 0.57%
GOOG $551.35 -0.69%
TSLA $184.10 -3.30%


DOW 17,693.38 +15.15 0.09%
S&P 500 2,058.59 +2.44 0.12%
NASDAQ 4,877.2240 +13.8620 0.28%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs