Heritage Bankshares, Inc. Announces Preliminary Results for Second Quarter, 2005
10 Agosto 2005 - 6:20PM
PR Newswire (US)
NORFOLK, Va., Aug. 10 /PRNewswire-FirstCall/ -- Heritage
Bankshares, Inc. ("Heritage") (HBKS) announced today certain
unaudited, preliminary financial results for the second quarter of
2005. Net income, after tax, for the quarter ended June 30, 2005
was $286,000. Net interest income for the second quarter was $1.6
million. No additional provision for loan loss was recorded for the
quarter ended June 30, 2005. Noninterest expense for the quarter
was $1.6 million, which included compensation expense of $787,000.
Results for the second quarter were affected by the following
items: a pretax gain of $151,000 on the sale of one former REO
(Real Estate Owned) property, offset by $43,000 of pretax legal
expenses related to various securities and general banking matters
and pretax expense of $103,000 largely related to contract
accounting services. Net income, after tax, for the six months
ended June 30, 2005 was $839,000, or $0.49 per basic share. Net
interest income for the six months ended June 30, 2005 was $3.3
million. Provision for loan losses was $30,000 for the six month
period. Noninterest expense for the six months ended June 30, 2005
was $2.8 million, which included compensation expense of $1.3
million. Pretax expenses of $137,000 related primarily to contract
accounting services, together with $116,000 in various legal
expenses, largely offset a $309,000 gain on the sale of REO during
the first six months of 2005. At June 30, 2005 Heritage had
1,707,850 shares outstanding. In addition, Heritage announced that
total assets at June 30, 2005 grew to $183 million, an increase of
$29 million from $154 million in assets at December 31, 2004. Net
loans held for investment at June 30, 2005 decreased by $4 million
to $121 million, compared to $125 million at December 31, 2004. REO
was $126,000 at June 30, 2005. Total deposits at June 30, 2005 were
$152 million, compared to total deposits of $133 million at
December 31, 2004, an increase of $19 million; furthermore,
noninterest bearing deposits have increased by $4 million in the
first six months of 2005, from $26 million at December 31, 2004 to
$30 million at June 30, 2005. Total transaction deposits have also
increased in the first six months of 2005, growing by $9 million in
the period, from $67 million at December 31, 2004 to $76 million at
June 30, 2005. Michael S. Ives, President and Chief Executive
Officer of Heritage, commented, "In many ways, Heritage is like a
new bank. In order to expand quickly, we are incurring substantial
expenses to recruit highly experienced personnel, to install the
latest commercial banking technology, and to commence our branch
expansion into Virginia Beach. We expect to continue these
expansion activities for the remainder of this year and throughout
2006. These initiatives will enable us to offer superior commercial
banking services and thereby serve a greater range of small
business and professional and executive customers than Heritage had
served previously." Ives continued, "Our core deposit growth is an
early indicator of the likely success of our initiatives. We are
well on our way to achieving our initial expansion objectives." As
previously announced, Heritage is in the process of restating its
unaudited quarterly financial statements for the quarters ended
March 31, 2004, June 30, 2004 and September 30, 2004, as well as
revising financial information for the quarter and year ended
December 31, 2004 included in Heritage's Form 8-K filed on January
31, 2005, for reasons related to the treatment of outstanding stock
options and certain stock options exercised in 2004. As a result of
its discovery of the need to restate those financial statements and
its continuing review of financial statements for years prior to
2004, Heritage has not yet filed its Annual Report on Form 10-KSB
for the year ended December 31, 2004 or its Form 10-QSB for the
quarter ended March 31, 2005, and anticipates filing with the
Securities and Exchange Commission a Form 12b-25 reporting that it
will not be able to complete and file its Quarterly Report on Form
10-QSB for the current quarter within the prescribed time period.
Furthermore, due to the continuing review of its financial
statements and results for previous periods, the preliminary,
unaudited financial information contained in this release may be
adjusted. Heritage anticipates completing the review of its
financial statements by the end of the third quarter of this year.
Heritage is the parent company of Heritage Bank & Trust
(http://www.heritagenorfolk.com/). Heritage Bank & Trust has
four full-service branches in the City of Norfolk and one branch in
the City of Chesapeake. Heritage Bank & Trust provides a full
range of financial services including business, personal and
mortgage loans, insurance, and annuities. Forward Looking
Statements The press release contains statements that constitute
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Heritage's actual
results, performance, achievements, and business strategy to differ
materially from the anticipated results, performance, achievements
or business strategy expressed or implied by such forward-looking
statements. Factors that could cause such actual results,
performance, achievements and business strategy to differ
materially from anticipated results, performance, achievements and
business strategy include: general and local economic conditions,
competition, capital requirements of the planned expansion,
customer demand for Heritage's banking products and services, and
the risks and uncertainties described in Heritage's most recent
Form 10-KSB filed with the Securities and Exchange Commission.
Heritage disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise DATASOURCE: Heritage
Bankshares, Inc. CONTACT: Michael S. Ives of Heritage Bankshares,
Inc., +1-757-523-2651 Web site: http://www.heritagenorfolk.com/
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