Figure Title: Figure 1: CRE Concentrations to Total Capital Relative to Peer Group
Description of Figure 1: The graph is a line graph consisting of 2 lines. On the Y-axis is Percentages, ranging from 0.00%, 200.00%, 400.00%, 600.00%, 800.00%, 1000.00%, 1200.00%, 1400.00%. The X-axis is Year Ending December 31, ranging from 2003, 2004, 2005, 2006 2007, 2008.

The plot points are below.

Annual Construction & Development Loans to Total Capital Relative to Peer Group

Heritage Bank

December 31, 2003 - 174.72%
December 31, 2004 - 261.39%
December 31, 2005 - 374.99%
December 31, 2006 - 460.43%
December 31, 2007 - 439.78%
December 31, 2008 - 1167.23%

Peer Group

December 31, 2003 - 69.12%
December 31, 2004 - 80.62%
December 31, 2005 - 91.09%
December 31, 2006 - 117.38%
December 31, 2007 - 123.67%
December 31, 2008 - 96.69%

Source: OIG Analysis of UBPRs for Heritage.