Heritage Financial Group in Albany, Ga., is revising its fourth quarter and 2009 results after selling off its largest nonperforming loan.

Heritage foreclosed on the $5 million loan — for a piece of raw land in Atlanta — on March 2. Based on the region's deteriorating economy and troubled real estate market, Heritage agreed to sell the loan for $1.9 million in cash last month.

Heritage said Thursday it would charge off $3.1 million on the loan, which was partly covered by a $1.7 million reserve it had established specifically for the loan. It also plans to increase its fourth-quarter provision by $2 million to $3.7 million, more than double the previously reported provision expense.

As a result, total assets at Dec. 31 totaled $571.9 million, $1.3 million less than earlier reported. Heritage's net loss for the quarter will be $1.7 million, four times greater than previously reported.

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