Heritage Financial announces 1st quarter results

ALBANY — Heritage Financial Group Inc. (NASDAQ: HBOS), holding company for HeritageBank of the South, has announced unaudited financial results for the quarter that ended March 31. Key aspects of the Company’s results for the first quarter of 2014 include:

— Net income of $1.3 million, or 18 cents per diluted share, down 61 percent from $3.4 million (45 cents per diluted share) for the linked quarter and down 66 percent from $3.9 million (52 cents per diluted share) for the year-earlier quarter;

— Excluding special items for each quarter, net income of $1.8 million (24 cents per diluted share), down 55 percent from $4 million (53 cents per diluted share) for the linked quarter and down 11 percent from $2 million (27 cents per diluted share) for the year-earlier quarter;

— Loan growth, excluding loans acquired through FDIC-assisted acquisitions, of $18 million, or 3 percent, on a linked-quarter basis, and $98.8 million, or 16 percent, compared with the year-earlier quarter;

— A decline in nonperforming loans, excluding FDIC-acquired loans, of 2 percent on a linked-quarter basis and 28 percent compared with the year-earlier quarter;

— A decrease in the provision for loan losses, excluding FDIC-acquired loans, to $65,000, down 70 percent from $220,000 for the linked quarter and down 86 percent compared with $450,000 for the year-earlier quarter; and

— An increase in the provision for FDIC-acquired loan losses to $105,000, up from $12,000 for the linked quarter (there was no provision for FDIC-acquired loan losses in the year-earlier quarter).

The Board of Directors has declared a regular quarterly cash dividend of 7 cents per share, which will be paid on May 23 to stockholders of record as of May 9. The board of Directors also has extended the current stock repurchase plan for one year. The plan, which has approximately 340,000 shares authorized for repurchase, expires in May 2015 unless otherwise completed or extended.