Heritage Bankshares, Inc. Announces Restatement of Previous Financial Statements to Correct Certain Errors
09 Noviembre 2005 - 3:09PM
PR Newswire (US)
NORFOLK, Va., Nov. 9 /PRNewswire-FirstCall/ -- Heritage Bankshares,
Inc. (Pinksheets: HBKS), today provided an update on its previously
announced review of its financial statements for prior periods.
Management concluded on November 3, 2005 that due to certain
accounting errors Heritage's financial statements for the years
ended December 31, 2003 and December 31, 2002 should be restated
and no longer be relied upon. The company's Audit Committee of the
Board of Directors concurred with management's conclusion as of
November 8, 2005. Management expects the 2002 restatement will
increase net income for the year ended December 31, 2002 by six and
a half percent (6.5%) from $1.365 million to $1.454 million. This
change is the net result of various adjustments having both
positive and negative effects. Heritage also believes that it will
restate its previously issued financial results for the years ended
December 31, 2003; Heritage has previously announced that it will
restate its financial results for 2004. Heritage is unable to
announce the effect of those 2003 and 2004 restatements today
because it has not finalized its detailed review for those years,
although management now believes such review will be completed
within two weeks. At this time, management expects that these
restatements will have only a small effect on net income in 2003
but will result in a material decrease in net income in 2004. It is
expected that the largest such downward adjustments to 2004 net
income will be the previously announced $452,000 increase in tax
expense due to the treatment of exercised stock options and the
previously announced pre-tax impaired loan charge of $369,000.
Management is also in the process of reviewing periods prior to
January 1, 2002. As soon as its analysis is complete, Heritage
intends to file its annual report on Form 10-KSB for the year ended
December 31, 2004 with the Securities and Exchange Commission. The
report will include restated annual financial statements for 2003
and 2002. 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 those anticipated. Forward looking
statements often contain a word such as "expect," "believe,"
"estimate" or "anticipate." For example, our forward-looking
statements include statements regarding our expectations for
on-going review of accounting matters, the expected or estimate
results of that review, and our current analysis of the results of
that review. Factors that could cause such actual results,
performance, achievements and business strategy to differ
materially from those anticipated include: discovery of further
accounting errors, 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 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: John O. Guthrie of Heritage Bankshares, Inc.,
+1-757-523-2600 Web site: http://www.heritagenorfolk.com/
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