Exhibit 99.1

	For additional information, contact:
	T. Heath Fountain
	Senior Vice President and
	Chief Financial Officer
	(229) 878-2055

HERITAGE FINANCIAL GROUP REPORTS THIRD QUARTER RESULTS

ALBANY, Ga. (November 10, 2010) – Heritage Financial Group (NASDAQ: HBOS), the holding company for HeritageBank of the South, today announced financial results for the third quarter and nine months ended September 30, 2010. The Company reported a net loss of $443,000 or $0.04 per diluted share for the third quarter compared with a net loss of $467,000 or $0.05 per diluted share for the year-earlier quarter. For the first nine months of 2010, the Company's net income increased to $484,000 or $0.05 per diluted share compared with $83,000 or $0.01 per diluted share in the year-earlier period.

As previously announced, results for the third quarter of 2010 included a one-time, noncash pre-tax charge of $1,000,000 to write-off an intangible asset related to the Company's expansion into Florida in 2006, which became impaired with the elimination of barriers to interstate branching as a result of the recent passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Excluding this charge, net income for the third quarter of 2010 was $266,000 or $0.03 per diluted share, and net income for the first nine months of 2010 was $1,193,000 or $0.12 per diluted share (see reconciliation of net income and net income per diluted share to these non-GAAP amounts later in this release).

Other financial highlights of the quarter included significant growth in loans and deposits, primarily reflecting the acquisition of eight branch locations during the past year, but also including follow-on organic growth in newly entered markets, particularly Statesboro, and the Bank's de novo entry into the Valdosta, Georgia, market.

Commenting on the results, Leonard Dorminey, President and Chief Executive Officer of Heritage Financial Group, said, "We are pleased with our growth as we have successfully consolidated the branch acquisitions we made during the past year, seized the opportunity to enter Valdosta, and continued to build on those moves with organic loan and deposit growth. Additionally, we note that our net interest margin remained relatively stable in the third quarter. The economy continues to be somewhat uncertain and significant pressures remain on borrowers and real estate values. However, we believe the expansion of our branch footprint in Georgia and Florida, along with our ability to successfully extend our customer relationships in these new markets, enhances our future prospects and provides a solid foundation for our expansion efforts."

Dorminey noted that in May the Bank completed the purchase of five Park Avenue Bank branches in Georgia. Early in the third quarter, the Bank also opened a branch in Valdosta, after attracting a seasoned and locally experienced team of commercial and retail bankers in that market. While the de novo branch in Valdosta added start-up expenses in the third quarter disproportionate to its revenues, it is seen as a strategically attractive addition to the Bank's presence in South Georgia.

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HBOS Reports Third Quarter 2010 Results

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November 10, 2010

Speaking to asset quality, Dorminey commented, "Although we witnessed an uptick in nonperforming loans in the third quarter on a linked-quarter basis, we believe we will not exceed the top reached in the third quarter last year, as we continue to work through and aggressively write-off problem loans. However, we recognize that the risk of deteriorating credit quality remains so long as unemployment remains high and until real estate values stabilize. As a result, credit costs likely will continue at elevated levels for at least the near term."

Concluding, Dorminey added, "Although it was unfortunate that we were required to write-off our intangible asset because of recent legislative action in Congress, which clearly had an adverse effect on our third quarter results, we believe the fundamentals of our operations remain strong. We have expanded our branch footprint considerably over the past year, entering several attractive new markets, and we have built on those new-market entries with follow-on organic growth in both loans and deposits. We continue to absorb new start-up costs associated with this expansion; however, we expect to see growth in these markets, which should enhance our overall future prospects for revenue and earnings growth."

At the end of the third quarter of 2010, Heritage Financial Group's capital levels remained significantly above the levels required to be considered "well-capitalized" under regulatory standards – the highest capital rating category a financial institution can achieve. The Company's total risk-based capital ratio at September 30, 2010, was 14.5%, significantly exceeding the required minimum of 10% to be considered a well-capitalized institution. The ratio of tangible common equity to total tangible assets was 9.0% as of September 30, 2010 (see reconciliation of GAAP and non-GAAP capital measures later in this release).

As previously announced, Heritage Financial Group and its affiliates have adopted a plan to reorganize from a two-tier mutual holding company to a full stock holding company and will undertake a "second-step" offering of shares of the new holding company's common stock in subscription, community and syndicated offerings. A proxy statement has been mailed to shareholders and depositors, who will vote to approve the plan of conversion on November 23, 2010. The conversion and offering is expected to be completed in the fourth quarter, subject to shareholder, depositor and regulatory approvals. Keefe Bruyette & Woods will manage the subscription and community offerings and will serve as the sole book-running manager for the offering. Sterne Agee & Leach will serve as co-manager for the syndicated offering.

Net interest income for the third quarter increased 38% to $5,106,000 from $3,706,000 in the same quarter last year, primarily reflecting a higher level of interest-earning assets as lower yields on interest-earning assets were offset by reduced rates on interest-bearing liabilities. The Company's net interest margin declined 18 basis points to 3.50% in the third quarter of 2010 from 3.68% in the year-earlier period due primarily to lower loan yields. On a linked-quarter basis, net interest margin decreased five basis points to 3.50% in the third quarter from 3.55% in the second quarter of 2010. Net interest income for the first nine months of 2010 increased 33% to $14,211,000 from $10,687,000 for the year-earlier period, again reflecting the impact of a higher level of interest-earning assets. The Company's net interest margin was 3.57% for the first nine months of 2010, reflecting an increase of 16 basis points from 3.41% in the comparable period last year.

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HBOS Reports Third Quarter 2010 Results

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November 10, 2010

Total nonperforming loans and nonperforming assets were $12,199,000 and $14,986,000, respectively, at September 30, 2010, up from $7,514,000 and $10,533,000, respectively, at June 30, 2010, but only slightly changed from $12,990,000 and $13,888,000, respectively, at September 30, 2009. Although nonperforming loans to total loans increased during the third quarter versus the second quarter of 2010, rising to 2.95% as of September 30, 2010, versus 1.93% at June 30, 2010, the relative amount of nonperforming loans declined significantly from 4.34% at September 30, 2009, primarily due to the growth in the loan portfolio from acquisition activity and internal growth. The increase in nonperforming loans during the quarter was primarily due to the addition of one relationship totaling $4.0 million. This loan is secured by various residential rental properties located in Southwest Georgia, and has been on the Bank's watch list since the first quarter of 2010 due to deteriorating cash flow. The Bank expects to restructure this loan during the fourth quarter, and believes it is adequately reserved at this time. Additionally, the Company has continued to reduce its exposure to acquisition, construction and development loans, with those declining to only 7% of its core portfolio at September 30, 2010, from 11% at the end of the third quarter of 2009. Net charge-offs to average outstanding loans in the total portfolio, on an annualized basis, were 0.45% for the third quarter of 2010 versus 0.48% for the second quarter of 2010 and 0.29% in the year-earlier period. Management believes that nonperforming assets and net charge-offs will likely remain at elevated levels, at least in the near term, because of the continued weakness in the economy.

On a linked-quarter basis, the Company increased its provision for loan losses to $950,000 for the third quarter of 2010 from $650,000 in the second quarter of 2010 due primarily to the increase in nonperforming loans during the third quarter. However, the provision was down considerably from the $2,500,000 in the year-earlier quarter, primarily as a result of the significant decline in the relative amount of nonperforming loans versus total loans in the third quarter of 2010 compared with the year-earlier quarter. For the first nine months of 2010, the provision for loan losses was $2,100,000 versus $3,800,000 in the first nine months of 2009. At September 30, 2010, the allowance for loan losses represented 1.58% of total loans outstanding versus 1.55% of total loans outstanding at June 30, 2010, and 2.68% of total loans outstanding at September 30, 2009.

Noninterest income increased 10% to $2,478,000 for the third quarter of 2010 from $2,244,000 in the year-earlier quarter, primarily reflecting increases in service charges, fees and commissions as well as mortgage origination fees, in part related to the Company's acquisition of eight branch offices during the past year. These increases were partially offset by a reduction in gains on sale of securities. Noninterest income for the first nine months of 2010 increased 5% to $6,245,000 from $5,928,000 in the year-earlier period, reflecting similar trends.

Noninterest expense for the third quarter of 2010 increased 75% to $7,779,000 from $4,450,000 in the third quarter of 2009 and primarily reflected the addition of personnel and occupancy expenses associated with eight branch offices acquired during the past year, as well as those related to the opening of a de novo branch in Valdosta. In addition, the previously mentioned $1,000,000 impairment, as well as acquisition related data processing conversion expenses of $257,000, added to noninterest expense for the quarter. Noninterest expense for the nine months ended September 30, 2010, rose 39% to $18,508,000 compared with $13,307,000 for the year-earlier period. The Company's efficiency ratio was 102.57% and 90.48%, respectively, for the third quarter and nine months ended September 30, 2010, versus 74.79% and 80.09%, respectively, in the year-earlier period.

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HBOS Reports Third Quarter 2010 Results

Page 4

November 10, 2010

The Company's total assets at September 30, 2010, increased 45% to $683,324,000 from $470,458,000 at September 30, 2009. Gross loans were $413,980,000 at September 30, 2010, up 38% from $299,296,000 in the year-earlier quarter. Deposits rose 66% to $535,392,000 at September 30, 2010, from $322,311,000 at September 30, 2009. Total shareholders' equity was $63,085,000 at September 30, 2010, versus $62,823,000 at the end of the third quarter of 2009.

Heritage Financial Group is the mid-tier holding company for HeritageBank of the South, a community-oriented bank serving primarily South Georgia and North Central Florida through 16 full-service banking offices. As of September 30, 2010, the Company reported total assets of approximately $683 million and total stockholders' equity of approximately $63 million. For more information about the Company, visit HeritageBank of the South on the Web at www.eheritagebank.com and see Investor Relations under About Us.

Heritage, MHC, a mutual holding company formed in 2002, holds approximately 76% of the shares of Heritage Financial Group. The remaining 24% of Heritage Financial Group's shares are held by public stockholders.

Except for historical information contained herein, the matters included in this news release and other information in the Company's filings with the Securities and Exchange Commission may contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995 and include this statement for purposes of these safe harbor provisions. Further information concerning the Company and its business, including additional factors that could materially affect our financial results, is included in our other filings with the SEC.

A registration statement relating to the securities being offered in the second-step offering of the Company has been filed with the SEC. This news release is not an offer to sell or the solicitation of an offer to buy common stock, which is made only pursuant to a prospectus, nor shall there be any sale of common stock in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the securities laws of any such state.

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HBOS Reports Third Quarter 2010 Results

Page 5

November 10, 2010

HERITAGE FINANCIAL GROUP

Unaudited Reconciliation of Net Income to Adjusted Net Income

(In thousands, except per share amounts)

	Third Quarter Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010		2009
Net income (loss) as reported	$	(443	)	$	(467	)	$	484	$	82
Impairment of intangible asset (Florida bank charter), net of tax		709			--			709		--
Adjusted earnings	$	266		$	(467	)	$	1,193	$	82

Diluted earnings per share	$	(0.04	)	$	(0.05	)	$	0.05	$	0.01
Impairment of intangible asset (Florida bank charter), net of tax		0.07			--			0.07		--
Adjusted earnings per diluted share	$	0.03		$	(0.05	)	$	0.12	$	0.01

Net Income and Diluted Earnings Per Share are presented in accordance with Generally Accepted Accounting Principles (GAAP). Adjusted Net Income and Adjusted Diluted Earnings Per Share are non-GAAP financial measures. The Company believes that these non-GAAP measures aid in understanding and comparing current-year and prior-year results, both of which include unusual items of different natures. These non-GAAP measures should be viewed in addition to, and not as a substitute for, the Company’s reported results.

Reconciliation of Shareholders' Equity and Total Assets to Tangible Common Equity

and Tangible Assets, Including Calculation of Tangible Common Equity Ratio (Unaudited)

(Dollars in thousands)

	Sept. 30, 2010			Dec. 31, 2009			Sept. 30, 2009
Total shareholders' equity	$	63,085		$	60,817		$	62,823
Less intangible assets		1,489			1,571			1,000
Tangible common equity	$	61,596		$	59,246		$	61,823
Total assets	$	683,324		$	571,948		$	470,458
Less intangible assets		1,489			1,571			1,000
Tangible assets	$	681,835		$	570,377		$	469,458
Total shareholders' equity to total assets		9.2	%		10.6	%		13.4	%
Tangible common equity to tangible assets		9.0	%		10.4	%		13.2	%

Total Shareholders' Equity and Total Assets are presented in accordance with Generally Accepted Accounting Principles (GAAP). Tangible Common Equity and Tangible Assets are non-GAAP financial measures. The Company provides these balances and resulting Tangible Common Equity Ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

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HBOS Reports Third Quarter 2010 Results

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November 10, 2010

Unaudited Financial Highlights

(In thousands, except per share amounts)

	Third Quarter Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Interest income	$	7,396		$	5,685		$	20,699		$	17,566
Interest expense		2,290			1,979			6,488			6,879
Net interest income		5,106			3,706			14,211			10,687
Provision for loan losses		950			2,500			2,100			3,800
Net interest income after provision for loan losses		4,156			1,206			12,111			6,887
Noninterest income		2,478			2,244			6,245			5,928
Noninterest expense		7,779			4,450			18,508			13,307
Income before income taxes		(1,145	)		(1,000	)		(152	)		(492	)
Income tax (benefit) expense		(702	)		(533	)		(636	)		(574	)
Net income	$	(443	)	$	(467	)	$	484		$	82
Net income per share:
Basic	$	(0.04	)	$	(0.05	)	$	0.05		$	0.01
Diluted	$	(0.04	)	$	(0.05	)	$	0.05		$	0.01
Weighted average shares outstanding:
Basic		10,139			10,072			10,073			10,046
Diluted		10,141			10,072			10,075			10,046
Dividends declared per share	$	0.09		$	0.08		$	0.27		$	0.24

	Sept. 30, 2010		Dec. 31, 2009		Sept. 30, 2009
Total assets	$	683,324	$	571,948	$	470,458
Cash and cash equivalents		33,275		14,922		12,680
Interest-bearing deposits in banks		10,579		43,236		5,075
Securities available for sale		161,798		120,527		101,338
Loans		413,980		334,139		299,296
Allowance for loan losses		6,534		6,060		8,028
Total deposits		535,392		426,607		322,311
Federal Home Loan Bank advances		42,500		42,500		42,500
Shareholders' equity		63,085		60,817		62,823

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Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Third Quarter Ended						For the nine months ended
	September 30,						September 30,
	2010			2009			2010			2009
Income Statement Data
Interest income
Loans	$	6,142		$	4,600		$	17,225		$	13,722
Securities - taxable		1,006			781			2,572			2,921
Securities - nontaxable		212			296			749			882
Federal funds sold		11			7			38			40
Interest bearing deposits in banks		25			1			115			1
Total interest income		7,396			5,685			20,699			17,566
Interest expense
Deposits		1,631			1,479			4,668			5,050
Other borrowings		659			500			1,820			1,829
Total interest expense		2,290			1,979			6,488			6,879
Net interest income		5,106			3,706			14,211			10,687
Provision for loan losses		950			2,500			2,100			3,800
Net interest income after provision for loan losses		4,156			1,206			12,111			6,887
Non-interest income
Service charges on deposit accounts		1,112			951			2,918			2,595
Other service charges, fees & commissions		643			338			1,511			1,061
Brokerage fees		253			252			733			662
Mortgage origination fees		227			66			337			275
Bank owned life insurance		153			155			459			465
Gain (loss) on sale of securities		71			469			230			836
Impairment loss on securities		-			-			-			-
Other		19			13			57			34
Total non-interest income		2,478			2,244			6,245			5,928
Non-interest expense
Salaries and employee benefits		3,446			2,296			8,985			6,720
Equipment		304			221			810			760
Occupancy		424			312			1,059			901
Advertising & marketing		166			147			410			345
Legal & accounting		112			118			440			391
Consulting & other professional fees		71			70			208			222
Director fees & retirement		142			155			419			461
Telecommunications		132			53			304			169
Supplies		98			46			251			131
Data processing fees		604			431			1,596			1,145
(Gain) loss on sale and write-downs
of other real estate owned		-			80			(343	)		384
Foreclosed asset expenses		181			78			779			172
FDIC insurance and other regulatory fees		283			136			682			501
Impairment loss on intangible assets		1,000			-			1,000			-
Other operating		816			307			1,908			1,005
Total non-interest expense		7,779			4,450			18,508			13,307
Income before taxes		(1,145	)		(1,000	)		(152	)		(492	)
Applicable income tax (benefit)		(702	)		(533	)		(636	)		(574	)
Net income	$	(443	)	$	(467	)	$	484		$	82

Weighted average shares - basic		10,139			10,072			10,073			10,046
Weighted average shares - diluted		10,141			10,072			10,075			10,046

Basic earnings per share	$	(0.04	)	$	(0.05	)	$	0.05		$	0.01
Diluted earnings per share		(0.04	)		(0.05	)		0.05			0.01
Cash dividend declared per share		0.09			0.08			0.27			0.24

Page 1 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	For the nine months ended
	September 30,
	2010		2009
Balance Sheet Data (at period end)
Total loans	$	413,980	$	299,296
Allowance for loan losses		6,534		8,028
Intangible assets		1,489		1,000
Total assets		683,324		470,458
Non-interest bearing deposits		48,014		18,811
Interest bearing deposits		487,378		303,500
Federal home loan bank advances		42,500		42,500
Federal funds purchased and securities sold under agreement to repurchase		35,092		35,211
Stockholders' equity		63,085		62,823

Total shares outstanding		11,454		11,452
Less treasury shares		1,056		1,042
Net shares outstanding		10,398		10,410

Shares held by Heritage, MHC		7,869		7,869
Unearned ESOP shares		209		253

Book value per share	$	6.19	$	6.19
Tangible book value per share (non-GAAP)		6.05		6.09
Market value per share		8.42		8.28

	Third Quarter Ended						For the nine months ended
	September 30,						September 30,
	2010			2009			2010			2009
Average Balance Sheet Data
Average interest bearing deposits in banks	$	19,003		$	751		$	31,130		$	585
Average federal funds sold		17,320			11,746			19,569			20,934
Average investment securities		158,781			109,338			129,841			117,980
Average loans		397,421			296,800			366,091			297,289
Average mortgage loans held for sale		595			-			209			-
Average earning assets		593,120			418,635			546,840			436,788
Average assets		676,789			471,517			621,386			490,066
Average noninterest bearing deposits		48,258			21,212			38,724			20,097
Average interest bearing deposits		480,785			302,408			435,600			309,411
Average total deposits		529,043			323,620			474,324			329,508
Average federal funds purchased and securities sold under agreement to repurchase		34,607			35,903			33,718			42,208
Average Federal Home Loan Bank advances		42,500			42,500			42,500			48,833
Average interest bearing liabilities		557,892			380,811			511,818			400,452
Average stockholders' equity		62,983			62,975			62,126			63,089

Performance Ratios
Annualized return on average assets		-0.26	%		-0.40	%		0.10	%		0.02	%
Annualized return on average equity		-2.81	%		-2.97	%		1.04	%		0.17	%
Net interest margin		3.50	%		3.68	%		3.57	%		3.41	%
Net interest spread		3.40	%		3.49	%		3.46	%		3.22	%
Efficiency ratio		102.57	%		74.79	%		90.48	%		80.09	%

Capital Ratios
Average stockholders' equity to average assets		9.31	%		13.36	%		10.00	%		12.87	%
Tangible equity to tangible assets (non-GAAP)		9.03	%		13.17	%		9.03	%		13.17	%
Tier 1 leverage ratio		8.7	%		13.2	%		8.7	%		13.2	%
Tier 1 risk-based capital ratio		13.3	%		18.0	%		13.3	%		18.0	%
Total risk-based capital ratio		14.5	%		19.3	%		14.5	%		19.3	%

Other Information
Full-time equivalent employees		206			117			206			117
Number of full-service offices		16			8			16			8

Page 2 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Five Quarter Comparison
	9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Income Statement Data
Interest income
Loans	$	4,600		$	4,834		$	5,320		$	5,763		$	6,142
Securities - taxable		781			682			776			790			1,006
Securities - nontaxable		296			292			298			239			212
Federal funds sold		7			14			9			18			11
Interest bearing deposits in banks		1			13			44			45			25
Total interest income		5,685			5,835			6,447			6,855			7,396
Interest expense
Deposits		1,479			1,422			1,524			1,512			1,631
Other borrowings		500			492			513			647			659
Total interest expense		1,979			1,914			2,037			2,159			2,290
Net interest income		3,706			3,921			4,410			4,696			5,106
Provision for loan losses		2,500			3,700			500			650			950
Net interest income after provision for loan losses		1,206			221			3,910			4,046			4,156
Non-interest income
Service charges on deposit accounts		951			950			824			982			1,112
Other service charges, fees & commissions		338			345			403			466			643
Brokerage fees		252			252			222			257			253
Mortgage origination fees		66			68			38			71			227
Bank owned life insurance		155			156			152			154			153
Gain (loss) on sale of securities		470			73			152			8			71
Impairment loss on securities		-			-			-			-			-
Other		12			15			21			17			19
Total non-interest income		2,244			1,859			1,812			1,955			2,478
Non-interest expense
Salaries and employee benefits		2,296			2,177			2,565			2,974			3,446
Equipment		221			225			255			252			304
Occupancy		312			297			306			329			424
Advertising & marketing		147			94			120			124			166
Legal & accounting		118			102			149			179			112
Consulting & other professional fees		70			74			71			66			71
Director fees & retirement		155			92			139			139			142
Telecommunications		53			70			69			103			132
Supplies		46			47			58			96			98
Data processing fees		431			461			481			511			604
(Gain) loss on sale and write-downs of other real estate owned		80			38			(231	)		(112	)		-
Foreclosed asset expenses		78			86			171			427			181
FDIC insurance and other regulatory fees		136			371			170			228			283
Impairment loss on premises held for sale		-			502			-			-			1,000
Other operating		307			328			382			710			816
Total non-interest expense		4,450			4,964			4,705			6,026			7,779
Income (loss) before taxes		(1,000	)		(2,884	)		1,017			(25	)		(1,145	)
Applicable income tax (benefit)		(533	)		(1,148	)		219			(153	)		(702	)
Net income (loss)	$	(467	)	$	(1,736	)	$	798		$	128		$	(443	)

Weighted average shares - basic		10,072			10,053			10,081			10,110			10,139
Weighted average shares - diluted		10,072			10,053			10,081			10,112			10,141

Basic earnings (loss) per share	$	(0.05	)	$	(0.17	)	$	0.08		$	0.01		$	(0.04	)
Diluted earnings (loss) per share		(0.05	)		(0.17	)		0.08			0.01			(0.04	)
Cash dividend declared per share		0.08			0.08			0.09			0.09			0.09

Page 3 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Five Quarter Comparison
	9/30/09		12/31/09		3/31/10		6/30/10		9/30/10
Balance Sheet Data (at period end)
Total loans	$	299,296	$	334,138	$	342,495	$	388,737	$	413,980
Allowance for loan losses		8,028		6,060		5,816		6,027		6,534
Intangible assets		1,000		1,571		1,540		2,604		1,489
Total assets		470,458		571,948		574,363		661,876		683,324
Non-interest bearing deposits		18,811		28,882		28,375		46,221		48,014
Interest bearing deposits		303,500		397,724		400,028		469,491		487,378
Federal home loan bank advances		42,500		42,500		42,500		42,500		42,500
Federal funds purchased and securities sold under agreement to repurchase		35,211		32,843		32,778		33,954		35,092
Stockholders' equity		62,823		60,817		61,615		62,359		63,085

Total shares outstanding		11,452		11,454		11,454		11,454		11,454
Less treasury shares		1,042		1,055		1,055		1,056		1,056
Net shares outstanding		10,410		10,399		10,399		10,398		10,398

Shares held by Heritage, MHC		7,869		7,869		7,869		7,869		7,869
Unearned ESOP shares		253		242		231		220		209

Book value per share	$	6.19	$	5.99	$	6.06	$	6.13	$	6.19
Tangible book value per share (non-GAAP)		6.09		5.83		5.91		5.87		6.05
Market value per share		8.28		7.25		12.08		10.82		8.42

	Five Quarter Comparison
	9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Average Balance Sheet Data
Average interest bearing deposits in banks	$	751		$	5,954		$	33,419		$	37,193		$	31,130
Average federal funds sold		11,746			21,607			14,002			20,693			19,569
Average investment securities		109,338			103,410			117,578			115,370			129,841
Average loans		296,800			305,694			336,801			350,438			366,091
Average earning assets		418,635			436,665			501,800			523,694			546,631
Average assets		471,517			494,889			569,898			593,696			621,386
Average noninterest bearing deposits		21,212			23,208			29,171			33,957			38,724
Average interest bearing deposits		302,408			325,547			395,033			413,008			435,600
Average total deposits		323,620			348,755			424,204			446,965			474,324

Average federal funds purchased and securities sold under agreement to repurchase		35,903			33,827			33,048			33,273			33,718
Average Federal Home Loan Bank advances		42,500			42,572			42,500			42,500			42,500
Average interest bearing liabilities		380,811			401,946			470,581			488,781			511,818
Average stockholders' equity		62,975			63,067			61,145			61,699			62,126

Performance Ratios
Annualized return on average assets		-0.40	%		-1.40	%		0.56	%		0.62	%		-0.29	%
Annualized return on average equity		-2.97	%		-7.28	%		5.22	%		6.00	%		-2.85	%
Net interest margin		3.68	%		3.72	%		3.68	%		3.61	%		3.57	%
Net interest spread		3.49	%		3.57	%		3.57	%		3.50	%		3.46	%
Efficiency ratio		74.79	%		85.88	%		75.62	%		83.36	%		102.57	%

Capital Ratios
Average stockholders' equity to average assets		13.4	%		12.7	%		10.7	%		10.4	%		10.0	%
Tangible equity to tangible assets (non-GAAP)		13.2	%		10.4	%		10.5	%		9.2	%		9.0	%
Tier 1 leverage ratio		13.2	%		11.2	%		9.3	%		9.3	%		8.7	%
Tier 1 risk-based capital ratio		18.0	%		14.2	%		14.0	%		14.0	%		13.3	%
Total risk-based capital ratio		19.3	%		15.5	%		15.3	%		15.3	%		14.5	%

Other Information
Full-time equivalent employees		117			134			139			194			206
Number of full-service offices		8			10			10			16			16

Page 4 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Third Quarter Ended						For the nine months ended
Total Portfolio	September 30,						September 30,
	2010			2009			2010			2009
Loans by Type
Construction and land loans	$	25,636		$	31,585		$	25,636		$	31,585
Farmland loans		21,689			7,101			21,689			7,101
Permanent 1 - 4		129,188			75,182			129,188			75,182
Permanent 1 - 4 - junior liens and revolving		27,352			23,556			27,352			23,556
Multifamily		13,754			10,899			13,754			10,899
Nonresidential		112,257			67,771			112,257			67,771
Commercial business loans		51,343			44,778			51,343			44,778
Consumer and other loans		33,244			38,424			33,244			38,424
Fair market value adjustments		(483	)		0			(483	)		0
		413,980			299,296			413,980			299,296

Asset Quality Data
Allowance for loan losses to total loans		1.58	%		2.68	%		1.58	%		2.68	%
Allowance for loan losses to average loans		1.64	%		2.70	%		1.78	%		2.70	%
Allowance for loan losses to non-performing loans		53.56	%		61.80	%		53.56	%		61.80	%
Accruing past due loans	$	899		$	1,277		$	899		$	1,277
Nonaccrual loans		12,199			12,990			12,199			12,990
Loans - 90 days past due & still accruing		-			-			-			-
Total non-performing loans		12,199			12,990			12,199			12,990
OREO and repossessed assets		2,787			898			2,787			898
Total non-performing assets		14,986			13,888			14,986			13,888
Non-performing loans to total loans		2.95	%		2.66	%		2.95	%		4.34	%
Non-performing assets to total assets		2.19	%		1.63	%		2.19	%		2.95	%
Net charge-offs to average loans (annualized)		0.45	%		0.29	%		0.59	%		0.32	%
Net charge-offs	$	443		$	219		$	1,626		$	723

	Five Quarter Comparison
	9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Loans by Type
Construction and land loans	$	31,585		$	31,474		$	24,193		$	25,427		$	25,636
Farmland loans		7,101			16,387			20,403			22,409			21,689
Permanent 1 - 4		75,182			86,511			92,241			115,372			129,188
Permanent 1 - 4 - junior liens and revolving		23,556			25,930			25,395			28,163			27,352
Multifamily		10,899			12,257			10,254			12,684			13,754
Nonresidential		67,771			81,046			88,476			104,469			112,257
Commercial business loans		44,778			48,578			47,081			47,876			51,343
Consumer and other loans		38,424			39,183			35,397			34,911			33,244
Fair market value adjustments		-			(7,228	)		(945	)		(2,574	)		(483	)
		299,296			334,138			342,495			388,737			413,980

Asset Quality Data
Allowance for loan losses to total loans		2.68	%		1.81	%		1.70	%		1.55	%		1.58	%
Allowance for loan losses to average loans		2.70	%		1.98	%		1.73	%		1.66	%		1.64	%
Allowance for loan losses to non-performing loans		61.80	%		71.61	%		89.23	%		80.21	%		53.56	%
Accruing past due loans	$	1,277		$	3,247		$	1,810		$	2,498		$	899
Nonaccrual loans		12,990			8,463			6,518			7,514			12,199
Loans - 90 days past due & still accruing		-			-			-			-			-
Total non-performing loans		12,990			8,463			6,518			7,514			12,199
OREO and repossessed assets		898			1,795			3,567			3,019			2,787
Total non-performing assets		13,888			10,258			10,085			10,533			14,986
Non-performing loans to total loans		4.34	%		2.53	%		1.90	%		1.93	%		2.95	%
Non-performing assets to total assets		2.95	%		1.79	%		1.76	%		1.59	%		2.19	%
Net charge-offs to average loans (annualized)		0.29	%		7.42	%		0.88	%		0.48	%		0.45	%
Net charge-offs	$	219		$	5,667		$	744		$	439		$	443

Page 5 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Third Quarter Ended						For the nine months ended
Core Portfolio	September 30,						September 30,
	2010			2009			2010			2009
Loans by Type
Construction and land loans	$	23,257		$	31,585		$	23,257		$	31,585
Farmland loans		13,421			7,101			13,421			7,101
Permanent 1 - 4		96,709			75,182			96,709			75,182
Permanent 1 - 4 - junior liens and revolving		21,191			23,556			21,191			23,556
Multifamily		10,845			10,899			10,845			10,899
Nonresidential		95,854			67,771			95,854			67,771
Commercial business loans		42,377			44,778			42,377			44,778
Consumer and other loans		26,397			38,424			26,397			38,424
Fair market value adjustments		-			-			-			-
	$	330,051		$	299,296		$	330,051		$	299,296

Asset Quality Data



Accruing past due loans	$	641		$	1,277		$	641		$	1,277
Nonaccrual loans		10,854			12,990			10,854			12,990
Loans - 90 days past due & still accruing		-			-			-			-
Total non-performing loans		10,854			12,990			10,854			12,990
OREO and repossessed assets		2,551			898			2,551			898
Total non-performing assets		13,405			13,888			13,405			13,888
Non-performing loans to total loans		3.29	%		4.34	%		3.29	%		4.34	%


Net charge-offs	$	443		$	219		$	1,626		$	723

	Five Quarter Comparison
	9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Loans by Type
Construction and land loans	$	31,762		$	28,002		$	22,021		$	22,030		$	23,257
Farmland loans		7,101			9,013			12,955			13,039			13,421
Permanent 1 - 4		75,182			81,255			87,552			89,888			96,709
Permanent 1 - 4 - junior liens and revolving		23,556			17,313			17,055			16,915			21,191
Multifamily		10,899			11,650			9,779			9,896			10,845
Nonresidential		67,771			71,013			80,887			80,436			95,854
Commercial business loans		44,778			45,785			44,440			42,903			42,377
Consumer and other loans		38,424			34,981			31,663			29,611			26,397
Fair market value adjustments		-			-			-			-			-
		299,473			299,012			306,352			304,718			330,051

Asset Quality Data



Accruing past due loans	$	1,277		$	1,826		$	1,300		$	369		$	641
Nonaccrual loans		12,990			7,237			6,441			7,450			10,854
Loans - 90 days past due & still accruing		-			-			-			-			-
Total non-performing loans		12,990			7,237			6,441			7,450			10,854
OREO and repossessed assets		898			1,190			3,253			2,782			2,551
Total non-performing assets		13,888			8,427			9,694			10,232			13,405
Non-performing loans to total loans, excluding purchased loans		4.34	%		2.42	%		2.10	%		2.44	%		3.29	%


Net charge-offs	$	219		$	5,667		$	744		$	439		$	443

Page 6 of 7

Heritage Financial Group

Third Quarter 2010 Earnings Release Supplement

(Dollars in thousands)

	Third Quarter Ended					For the nine months ended
Purchased	September 30,					September 30,
	2010			2009		2010			2009
Loans by Type
Construction and land loans	$	2,379		$	-	$	2,379		$	-
Farmland loans		8,268			-		8,268			-
Permanent 1 - 4		32,479			-		32,479			-
Permanent 1 - 4 - junior liens and revolving		6,161			-		6,161			-
Multifamily		2,909			-		2,909			-
Nonresidential		16,403			-		16,403			-
Commercial business loans		8,966			-		8,966			-
Consumer and other loans		6,847			-		6,847			-
Fair market value adjustments		(483	)		-		(483	)		-
		83,929			-		83,929			-

Asset Quality Data



Accruing past due loans	$	258		$	-	$	258		$	-
Nonaccrual loans		1,345			-		1,345			-
Loans - 90 days past due & still accruing		0			-		-			-
Total non-performing loans		1,345			-		1,345			-
OREO and repossessed assets		236			-		236			-
Total non-performing assets		1,581			-		1,581			-
Non-performing loans to total loans		1.60	%		-		1.60	%		-


Net charge-offs	$	-		$	-	$	-		$	-

	Five Quarter Comparison
	9/30/09		12/31/09			3/31/10			6/30/10			9/30/10
Loans by Type
Construction and land loans	$	-	$	3,472		$	2,172		$	3,397		$	2,379
Farmland loans		-		7,374			7,448			9,370			8,268
Permanent 1 - 4		-		5,256			4,689			25,484			32,479
Permanent 1 - 4 - junior liens and revolving		-		8,617			8,340			11,248			6,161
Multifamily		-		607			475			2,788			2,909
Nonresidential		-		10,033			7,589			24,033			16,403
Commercial business loans		-		2,793			2,641			4,973			8,966
Consumer and other loans		-		4,202			3,734			5,300			6,847
Fair market value adjustments		-		(7,228	)		(945	)		(2,574	)		(483	)
		-		35,126			36,143			84,019			83,929

Asset Quality Data



Accruing past due loans	$	-	$	1,421		$	510		$	2,129		$	258
Nonaccrual loans		-		1,226			77			64			1,345
Loans - 90 days past due & still accruing		-		0			0			0			-
Total non-performing loans		-		1,226			77			64			1,345
OREO and repossessed assets		-		605			314			237			236
Total non-performing assets		-		1,831			391			301			1,581
Non-performing loans to total purchased loans		-		3.49	%		0.21	%		0.08	%		1.60	%


Net charge-offs		-		-			-			-			-

Note:
Certain prior-period amounts have been reclassified to conform with current presentation.
For non-GAAP measures see reconciliation to closest GAAP measures contained in this press release.

Page 7 of 7

Heritage Financial Group 8-K