To our customers, shareholders, friends and neighbors,

Recent headlines about the banking and financial industry have been unsettling to say the least. The media attention given these problems has initiated sincere concerns among bank customers and investment clients. The reality, however, is that our nation’s banking system is strong, stable, and profitable.    In specific, Heritage Bank is well capitalized and is strategically positioned to weather these challenging times.

Heritage Bank has been around since before the light bulb.  Although it was years before we ever made the first automobile loan, it was only because Henry Ford hadn’t yet gotten around to inventing it!  Our organization has not only survived, but flourished during difficult times like these. 

We have been with you through it all.  Since 1879 Heritage Bank has been a trusted, solid financial presence, dedicated and committed to helping you, your family, your business and your neighborhood.

• Performance. Our institution continues to exceed Wall Street estimates with announced earnings through the second quarter of $2,753,000, or $.77 per share.   And at a time when many institutions are retreating from their previous dividend commitments, we continue to fund a quarterly dividend of $.12 per share.
  
  
• Lending. Heritage Bank does not have a subprime mortgage business line.   We take a conservative position in managing our credit function.  It is our desire to focus on lending within our geographic footprint, in local neighborhoods where we know our customers.
  
  
• Community Service. Last year the Heritage Bank family of employees donated more than      10,000  volunteer hours of service in your local neighborhoods.   In addition 68 students from local high schools were awarded Heritage Bank scholarships.
  
  
• FDIC Insured. Our deposits are FDIC insured to the maximum allowed by law.  To learn more about deposit insurance or calculate your coverage, ask any employee or go to www.fdic.gov.
  

We are proud to have served neighborhoods like yours for 129 years.  Through many decades we’ve celebrated the good times – and weathered the tough ones.  During this time when uncertainty is reflected in America’s financial industry, rest assured we will be here for you as a trusted friend and neighbor.

Sincerely,

John E. Peck
President and CEO
Heritage Bank