Heritage Southeast Bancorp Inc. (fka HSBI)

[norweger1979]

CCFH $0.98

K BOOK VALUE PER COMMON SHARE

The book value of the Company's outstanding common shares as of December 31, 2014 and 2013 is calculated as
follows:

As of December 31, 2014 2013
Total shareholder's equity $ 22,969,008 $ 7,715,014
Less: Preferred equity $ 9,200,000 -
Shareholder's equity available $ 13,769,008 $ 7,715,014
to common shares

Common shares outstanding 3,604,316 3,604,316
Book value per common share $ 3.82 $ 2.14


The following table presents the estimated book value per common share as of December 31, 2014 and 2013 assuming
the conversion of preferred shares to common stock and exercise of all outstanding warrants:


As of December 31, 2014 2013

Total shareholder's equity $ 22,969,008 $ 7,715,014
Effect of excercised warrants
& conversion of preferred shares $ 8,000,000 -
Projected shareholders equity with
exercise of warrants $ 30,969,008 $ 7,715,014

Common shares outstanding 3,604,316 3,604,316
Effect of converted preferred
shares 18,400,000 -
Effect ofexercised warrants 16,000,000 -
Common shares outstanding after
exercised warrants and conversion
of preferred shares 38,004,316 3,604,316
Book value per share $ 0.81 $ 2.14



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