CLEVELAND — The third quarter ending Sept. 30, 2010, shows continued upward trends in profitability and capital for Southern Heritage Bank. Owned by more than 800 shareholders in Bradley County and governed by a local Board of Directors, Southern Heritage is growing their strong capital even in the midst of the current recession. After loan write downs occurred in 2007 and 2008, the bank returned to profitability in 2009 and the trends remain very positive for 2010. The tier one capital ratio for Sept. 30, 2010, was 11.64 percent which is considered strong in the industry. Profit for the first three quarters of 2010 is up 76 percent over the same period of 2009.

In making the announcement of third quarter earnings, Lee Stewart, president and CEO, said, “I am extremely proud of the way we have controlled expenses and managed through the problem loans that plagued us in 2007 and 2008. The entire staff and particularly our lenders have shown an admirable ability to work through these tough economic times.

“Our capital ratios are very strong and profitability is improving primarily because of the strength of the loan loss reserve and the improvement in our asset quality,” Stewart said. “These trends are counter to the industry as a whole as the overall economy is painfully slow to show much improvement.

“We are proud to be your locally owned community bank and financial partner. I thank our shareholders and customers for your support and thank our employees for the Expect A Difference service they provide daily.”

Southern Heritage Bank opened for business in April 1999, and operates three full-service banking offices in Bradley County. For more information about Southern Heritage Bank, visit the website at www.southernheritagebank.com.