Attached files
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| 8-K - HERITAGE FINANCIAL GROUP INC 8-K 3-14-2011 - Heritage Financial Group Inc | form8k.htm |
Exhibit 99
FDIC-Assisted Acquisition of
Citizens Bank of Effingham
O. Leonard Dorminey - President & Chief Executive Officer
O. Mitchell Smith - EVP & Chief Credit Officer
T. Heath Fountain - EVP & Chief Financial Officer
1
CAUTIONARY STATEMENTS
This presentation contains forward-looking statements about future
financial performance, business plans and strategies of Heritage
Financial Group. Because forward-looking statements involve risks
and uncertainties, actual results may differ materially from those
expressed or implied. Investors are cautioned not to place undue
reliance on these forward-looking statements and are advised to
carefully review the discussion of forward-looking statements and
risk factors in documents that the Company files with the Securities
and Exchange Commission, including the Company’s most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
financial performance, business plans and strategies of Heritage
Financial Group. Because forward-looking statements involve risks
and uncertainties, actual results may differ materially from those
expressed or implied. Investors are cautioned not to place undue
reliance on these forward-looking statements and are advised to
carefully review the discussion of forward-looking statements and
risk factors in documents that the Company files with the Securities
and Exchange Commission, including the Company’s most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
2
Transaction Summary
§ On February 18, 2011, Springfield, GA based Citizens Bank of Effingham was closed
by the Georgia Department of Banking and Finance
by the Georgia Department of Banking and Finance
§ HeritageBank of the South assumed all the deposits of Citizens Bank of Effingham
($206.5 million at 12/31/10) at a premium of 1.0% of core deposits ($1.3 million)
($206.5 million at 12/31/10) at a premium of 1.0% of core deposits ($1.3 million)
§ HeritageBank of the South purchased essentially all the assets of Citizens Bank of
Effingham ($214.3 million at 12/31/10) at a discount of $25.1 million (11.7%
discount on assets acquired, approximately 16.4% discount to covered assets)
Effingham ($214.3 million at 12/31/10) at a discount of $25.1 million (11.7%
discount on assets acquired, approximately 16.4% discount to covered assets)
§ 80% / 20% loss sharing on approximately $152.9 million of covered assets
3
Citizens Bank of Effingham Overview
§ Headquartered in Springfield, GA
§ Established in 1998
§ Three branches in Effingham and one branch in Chatham county
§ 8th ranked deposit market share in Savannah, GA MSA
Ø 4th ranked Georgia MSA by population and projected household income growth (1)
Ø 5th ranked Georgia MSA by 2010 median household income (1)
§ At December 31, 2010 - $214 million in assets, $145 million in loans, and $206
million in deposits
million in deposits
§ NPAs/ Assets of 17.20%
§ Tangible Equity/ Tangible Assets of 1.02%
§ 42 FTE employees
§ Cease & desist order issued on May 4, 2010
(1) Source: ESRI
4
Pro Forma Financial Benefits
§ Highly accretive to 2011 EPS
§ IRR estimates exceed 25%
§ Accretive to tangible book value per share
§ Strong pro forma capital ratios
Ø Estimated pro forma 12/31/10 TE/TA of 12.5%
and Total RBC Ratio of 25.4%
and Total RBC Ratio of 25.4%
5
Strategic Benefits
§ Entry into attractive Savannah market
§ Economies of scale and improved efficiencies
§ Opportunities for cross sales and account acquisition
based on enhanced platform and capital base
based on enhanced platform and capital base
§ Significant opportunity to lower deposit costs
§ Natural market extension east from our existing
Statesboro footprint
Statesboro footprint
6
Expanding Our Regional Franchise
Source: SNL Financial
Data as of June 30, 2010
HBOS Branches
Citizens Bank of
Effingham Branches
Effingham Branches
7
Desirable Expansion
Source: SNL Financial
Data as of June 30, 2010
8
Acquired Branches
Source: SNL Financial
Data as of June 30, 2010
9
Acquired Branches
Source: SNL Financial
Data as of June 30, 2010
10
HBOS Summary
§ Strong balance sheet with significant capital surplus
§ Executing strategic plan
Ø FDIC-assisted acquisitions
§ Citizens Bank of Effingham - 2/18/11
§ Tattnall Bank - 12/4/09
Ø Branch acquisitions
§ 5 Branches from PAB Bankshares, Inc. - 5/24/10
§ 1 Branch from Atlantic Coast Federal Corp. - 12/31/09
Ø Attracting talented bankers
§ Acquirer with a proven ability to execute transactions
§ Disciplined approach to acquisitions and growth
NASDAQ: HBOS