Heritage Bankshares, Inc. Updates Review of Financial Statements
02 Setembro 2005 - 3:49PM
PR Newswire (US)
NORFOLK, Va., Sept. 2 /PRNewswire-FirstCall/ -- Heritage
Bankshares, Inc. ("Heritage") (Pink Sheets: HBKS) updates the
review of its financial statements. As previously announced,
earlier this year Heritage discovered accounting errors in its
financial statements reported for 2004, relating to the treatment
of stock options under APB 25 and the calculation of diluted
earnings per share. Heritage then concluded and announced that the
financial statements for 2004 should no longer be relied upon and
would need to be restated. Heritage continues to review various
items in its previous financial statements and will not restate its
financial statements or file its SEC reports until after that
review is complete. Heritage's continued review of its financial
and accounting records for 2004, as well as for prior periods, has
revealed a number of errors, some of which raised complex issues
and have involved substantial time to resolve. One of those errors,
at this time unresolved, involves the application of SFAS 91,
"Accounting for Non-Refundable Fees and Costs Associated with
Originating or Acquiring Loans and Indirect Costs of Leases." Due
to the complications involved in applying SFAS 91 to Heritage's
accounting records, Heritage has not yet completed its analysis
and, as a result, has not determined the impact on the company's
financial statements when combined with the additional errors
uncovered. Once the SFAS 91 analysis is complete, there could be
additional material adjustments to the 2004 financial statements as
well as previous financial statements. Management believes that
Heritage's financial position remains strong and its business and
operations will not be threatened by any adjustments that might be
made. 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. Our "forward
looking statements" include the timing of the next update, the
possible materiality of the adjustments, Heritage's financial
position, and the effect of the adjustments on Heritage's business
and operations. 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: John O. Guthrie of Heritage
Bankshares, Inc., +1-757-523-2600 Web site:
http://www.heritagenorfolk.com/
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