Heritage Financial Group Reports Third Quarter Results
Heritage Financial Group (NASDAQ: HBOS), the holding company for HeritageBank of the South, today announced financial results for the third quarter and nine months ended September 30, 2010. The Company reported a net loss of $443,000 or $0.04 per diluted share for the third quarter compared with a net loss of $467,000 or $0.05 per diluted share for the year-earlier quarter. For the first nine months of 2010, the Company's net income increased to $484,000 or $0.05 per diluted share compared with $83,000 or $0.01 per diluted share in the year-earlier period.
As previously announced, results for the third quarter of 2010 included a one-time, noncash pre-tax charge of $1,000,000 to write-off an intangible asset related to the Company's expansion into Florida in 2006, which became impaired with the elimination of barriers to interstate branching as a result of the recent passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Excluding this charge, net income for the third quarter of 2010 was $266,000 or $0.03 per diluted share, and net income for the first nine months of 2010 was $1,193,000 or $0.12 per diluted share (see reconciliation of net income and net income per diluted share to these non-GAAP amounts later in this release).
Other financial highlights of the quarter included significant growth in loans and deposits, primarily reflecting the acquisition of eight branch locations during the past year, but also including follow-on organic growth in newly entered markets, particularly Statesboro, and the Bank's de novo entry into the Valdosta, Georgia, market.
Commenting on the results, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, said, "We are pleased with our growth as we have successfully consolidated the branch acquisitions we made during the past year, seized the opportunity to enter Valdosta, and continued to build on those moves with organic loan and deposit growth. Additionally, we note that our net interest margin remained relatively stable in the third quarter. The economy continues to be somewhat uncertain and significant pressures remain on borrowers and real estate values. However, we believe the expansion of our branch footprint in Georgia and Florida, along with our ability to successfully extend our customer relationships in these new markets, enhances our future prospects and provides a solid foundation for our expansion efforts."
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