Heritage Bankshares, Inc. Announces Closing Of Ocean View And Military Highway Branches
NORFOLK, Va., April 18, 2013 /PRNewswire/ -- Heritage Bankshares, Inc. ("Heritage"; the "Company") (OTCQB: HBKS), the parent of Heritage Bank (the "Bank"), today announced that it will permanently close its Ocean View (" Ocean View") and Military Highway ("Military Highway") branches. Ocean View, located at 735 East Ocean View Avenue, Norfolk, Va. will close at 4:00 pm on July 31, 2013 and Military Highway, located at 841 North Military Highway, Norfolk, Va. will close at 5:00 pm on July 31, 2013. Customer accounts will be automatically transferred to nearby branches and all five remaining branches will remain open to provide customer banking services.
The Company owns both of these facilities. Based on the current city tax assessments for these facilities, the Company does not expect to incur any material overall net loss on the final closing and disposition of these facilities. However, under generally accepted accounting principles, upon making the decision to close these offices, the Company is required to charge-off the furniture, fixtures and equipment ("F,F&E") in these facilities that will not be used by the Company in the future. Furthermore, until their disposition, the Company will place these facilities in real estate owned at the net book value of the land and improvements.
Accordingly, for the quarter ending March 31, 2013, the Company will incur a pre-tax loss of $136,000 from the charge-off of the F,F&E in these facilities and will place these facilities in real estate owned at $1.1 million , their combined net book value.
Michael S. Ives, President and CEO of the Company and the Bank, commented:"The announcement today of the closing of these two branches is an important step for the Company. There will be cost savings from these closings, but that is not the primary basis for this decision.
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