WEST POINT, Ga., July 27, 2011 /PRNewswire/ -- Charter Financial
Corporation (NASDAQ: CHFN) today reported net income of
$1.5 million, or $0.09 per basic and diluted share, for the
quarter ended June 30, 2011, compared
with $1.2 million, or $0.07 per basic and $0.06 per diluted share, for the quarter ended
June 30, 2010. The primary reason for
higher net income in the current year was lower credit costs, as
reflected by the $1.0 million
decrease in the provision for loan losses for the 2011 period,
partially offset by a $536,000
decrease in noninterest income. Fiscal 2011 earnings to date total
$2.1 million, or $0.11 per basic and diluted share, compared to
$5.1 million, or $0.28 per basic and diluted share, for the
prior-year period. The decrease in earnings for the
nine-month period in 2011 was primarily due to a $9.3 million purchase gain in 2010 on the assets
and liabilities of McIntosh Commercial Bank acquired from the FDIC
on March 26, 2010.
The Company's total assets were $955.8
million at June 30, 2011, down
from $1.2 billion at September 30, 2010, and $1.1 billion at June 30,
2010. Total loans outstanding were $554.4 million at June 30,
2011, of which $120.1 million,
or 21.7 percent, were covered by FDIC loss sharing. Total loans
outstanding at September 30, 2010 and
June 30, 2010 were $599.4 million and $630.6
million, respectively.
Total deposits were $695.8 million
at June 30, 2011, compared with
$823.1 million at September 30, 2010. During the nine months ended
June 30, 2011, non-time deposits
increased from $313.2 million to
$319.4 million. Borrowings declined
to $110.0 million at June 30, 2011, from $212.0
million at September 30, 2010,
due to the Company's continued focus on lowering its use of
wholesale funding.
Net interest income remained the same at $8.2 million for the quarter ended June 30, 2011, and the quarter ended June 30, 2010. Total interest income
decreased to $11.4 million for the
quarter ended June 30, 2011, compared
to $14.4 million for the same quarter
last year. Interest expense was lower at $3.2 million for the quarter ended June 30, 2011, compared with $6.2 million for the same quarter of 2010.
The net interest margin increased to 4.06 percent for the
quarter ended June 30, 2011, compared
with 3.50 percent for the same quarter of 2010. The increased net
interest margin offset the lower level of earning assets resulting
in approximately the same level of net interest income.
Chairman and CEO Robert L.
Johnson said, "Our FDIC-assisted acquisitions are on track.
As of July 1, 2011, we have received
$123.3 million from the FDIC in
reimbursement for losses under the loss-sharing agreements and we
will receive another $61.2 million
based on estimated future loss-share claims. As expected, it is
taking some time to work out the acquired assets and safely
reinvest the proceeds. In the short term, we have been able to
redeploy cash to reshape our funding mix which adds flexibility and
lowers interest cost. We remain optimistic about our financial
results and the continuing opportunities to build our retail
franchise through acquisitions."
Nonperforming assets not covered by loss sharing declined to
$17.2 million at June 30, 2011, from $24.2
million at June 30, 2010, and
$21.4 million at September 30, 2010. The Company had net
charge-offs of $634,000 for the
quarter ended June 30, 2011, compared
to $3.2 million for the same quarter
of 2010. The Company recorded a loan loss provision of $300,000 on non-covered loans for the quarter
ended June 30, 2011, down from a
$1.3 million loan loss provision for
the same quarter in 2010. The allowance for loan losses was 2.12
percent of non-covered loans at June 30,
2011, compared with 2.0 percent of non-covered loans at
June 30, 2010.
Noninterest expense remained the same at $8.0 million for the quarter ended June 30, 2011, and the quarter ended June 30, 2010.
Noninterest income totaled $2.5
million for the quarter ended June
30, 2011, compared with $3.0
million for the same quarter in 2010. Noninterest income for
the current quarter was lower due to lower discount accretion on
the Company's FDIC indemnification asset which totaled $181,000 and $557,000 for the three months ending June 30, 2011 and 2010 respectively. Also fees on
deposits were $1.4 million for the
quarter ended June 2011, and
$1.6 million for the quarter ended
June 2010. The quarter ended
June 2011 included a gain on the sale
of securities of $426,000 which was
offset by a charge of $300,000 for
other than temporary impairment of a non-agency collateralized
mortgage security.
The Company had significantly higher total stockholders' equity
of $138.9 million at June 30, 2011, compared with $108.8 million at June 30,
2010. The higher stockholders' equity was primarily due to
an incremental stock offering completed in September 2010.
Mr. Johnson concluded, "We reported better profitability for the
third quarter of fiscal 2011 because of lower credit costs and
improving credit metrics. The continuation of these trends depends
on both the general and local economies and real estate markets.
Additionally, we are proud that CharterBank further strengthened
its core regulatory capital to 13.16 percent of assets at
June 30, 2011, from 10.21 percent of
assets at September 30, 2010."
"Our network of 14 branches serves an attractive geographic
region in West Central Georgia and East Central Alabama, and our
solid capital position places CharterBank in a unique position of
strength versus many of its peers. With our strong capital and a
solid operating base, we are well positioned to build an enviable
community bank footprint with strong shareholder returns."
About Charter Financial Corporation
Charter Financial Corporation is a savings and loan holding
company and the parent company of CharterBank, a growing
full-service community bank. Charter Financial Corporation is in
the mutual holding company structure. CharterBank is headquartered
in West Point, Georgia, and
operates branches in West Central Georgia and East Central Alabama.
CharterBank's deposits are insured by the Federal Deposit Insurance
Corporation.
Forward-Looking Statements
This release contains "forward-looking statements" that may
be identified by use of such words as "believe," "expect,"
"anticipate," "should," "planned," "estimated," and "potential."
Examples of forward-looking statements include, but are not limited
to, estimates with respect to our financial condition and results
of operation and business that are subject to various factors that
could cause actual results to differ materially from these
estimates. These factors include but are not limited to general and
local economic conditions; changes in interest rates, deposit
flows, demand for mortgages and other loans, real estate values,
and competition; changes in accounting principles, policies, or
guidelines; changes in legislation or regulation; and other
economic, competitive, governmental, regulatory, and technological
factors affecting our operations, pricing, products, and
services. Any or all forward-looking statements in this
release and in any other public statements we make may turn out to
be wrong. They can be affected by inaccurate assumptions we might
make or known or unknown risks and uncertainties. Consequently, no
forward-looking statements can be guaranteed. Except as required by
law, the Company disclaims any obligation to subsequently revise or
update any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
Charter
Financial Corporation
Selected
Financial Data (unaudited)
In thousands
except share and per share data:
|
|
|
June
30,
|
|
September
30,
|
|
June
30,
|
|
|
2011
|
|
2010***
|
|
2010
|
|
Total
Assets
|
$955,842
|
|
$1,186,082
|
|
$1,139,955
|
|
Cash
and Cash Equivalents
|
65,318
|
|
235,639
|
|
117,356
|
|
Loans
Receivable, Net
|
554,449
|
|
599,370
|
|
630,571
|
|
Non-covered Loans
Receivable, Net
|
434,310
|
|
451,231
|
|
463,725
|
|
Covered Loans Receivable, Net
|
120,139
|
|
148,139
|
|
166,846
|
|
Real
Estate Owned
|
24,322
|
|
39,268
|
|
43,014
|
|
Non-covered
Real Estate Owned
|
4,838
|
|
9,641
|
|
11,017
|
|
Covered Real Estate Owned
|
19,484
|
|
29,627
|
|
31,997
|
|
Mortgage Securities Available for Sale
|
135,292
|
|
133,080
|
|
156,251
|
|
Core
Deposits*
|
319,360
|
|
313,170
|
|
308,402
|
|
Retail Deposits**
|
663,834
|
|
739,691
|
|
710,620
|
|
Total
Deposits
|
695,818
|
|
823,134
|
|
811,058
|
|
Borrowings
|
110,000
|
|
212,000
|
|
212,175
|
|
Total
Stockholders' Equity
|
138,907
|
|
135,788
|
|
108,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value per Share
|
$
7.65
|
|
$
7.49
|
$
|
$ 5.90
|
|
Tangible Book Value per Share
|
7.37
|
|
7.20
|
|
5.61
|
|
|
|
|
|
|
|
|
Minority Shares Outstanding
|
6,694,232
|
|
6,675,775
|
|
2,571,925
|
|
Total
Shares Outstanding – at Period End
|
18,152,156
|
|
18,133,699
|
|
18,429,849
|
|
Weighted Average Total Shares Outstanding –
Basic
|
18,140,655
|
|
18,420,938
|
|
18,419,272
|
|
Weighted Average Total Shares Outstanding –
Fully Diluted
|
18,187,929
|
|
18,473,624
|
|
18,474,696
|
|
|
|
|
|
|
|
|
|
*Core deposits include transaction accounts, money market
accounts and savings accounts.
**Retail deposits include Core Deposits and certificates of
deposits excluding brokered and wholesale certificates of
deposits.
***Financial information as of September
30, 2010 has been derived from audited financial
statements.
Selected Operating Data (in thousands except share and per
share data):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Total Interest Income
|
$11,397
|
|
$14,354
|
|
$35,094
|
|
$36,628
|
|
Total Interest
Expense
|
3,244
|
|
6,193
|
|
12,072
|
|
16,572
|
|
Net Interest Income
|
8,153
|
|
8,161
|
|
23,022
|
|
20,056
|
|
Provision for Loan Losses
on
|
|
|
|
|
|
|
|
|
non-covered
loans
|
300
|
|
1,300
|
|
1,400
|
|
5,100
|
|
Provision for Loan Losses
on
|
|
|
|
|
|
|
|
|
covered
loans
|
-
|
|
-
|
|
400
|
|
-
|
|
Net Interest Income
after
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
|
7,853
|
|
6,861
|
|
21,222
|
|
14,956
|
|
Noninterest Income
|
2,449
|
|
2,985
|
|
7,573
|
|
14,139
|
|
Noninterest Expense
|
7,968
|
|
8,038
|
|
26,004
|
|
21,387
|
|
Income before Income
Taxes
|
2,334
|
|
1,808
|
|
2,791
|
|
7,708
|
|
|
|
|
|
|
.
|
|
|
|
Income Tax Expense
|
785
|
|
608
|
|
715
|
|
2,619
|
|
Net Income
|
1,549
|
|
1,200
|
|
2,076
|
|
5,089
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share -
Basic
|
$ 0.09
|
|
$ 0.07
|
|
$ 0.11
|
|
$ 0.28
|
|
Earnings per Share – Fully
Diluted
|
0.09
|
|
0.06
|
|
0.11
|
|
0.28
|
|
Cash Dividends per
Share**
|
0.05
|
|
0.10
|
|
0.15
|
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-offs – Legacy
Loans
|
634
|
|
3,239
|
|
1,837
|
|
4,974
|
|
Deposit Fees
|
1,448
|
|
1,553
|
|
4,242
|
|
4,225
|
|
Gain on Sale of Loans
|
127
|
|
157
|
|
506
|
|
626
|
|
|
|
|
|
|
|
|
|
|
**First Charter, MHC has waived
most of its portion of these dividends, resulting in payment
primarily to the minority stockholders.
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Unaudited
|
|
Return on Equity
|
4.12%
|
|
4.38%
|
|
1.70%
|
|
6.50%
|
|
Return on Assets
|
0.63%
|
|
0.41%
|
|
0.26%
|
|
0.66%
|
|
Net Interest Margin
|
4.06%
|
|
3.50%
|
|
3.60%
|
|
3.07%
|
|
Bank Core Capital
Ratio
|
13.16%
|
|
9.10%
|
|
13.16%
|
|
9.10%
|
|
Effective Tax Rate
|
33.64%
|
|
33.62%
|
|
25.62%
|
|
33.98%
|
|
Dividend Payout Ratio
|
31.30%
|
|
46.39%
|
|
70.03%
|
|
26.35%
|
|
|
|
|
|
|
|
|
|
|
Ratios of Assets Not
Covered:
|
|
|
|
|
|
|
|
|
Loan Loss Reserve as a %
of
|
|
|
|
|
|
|
|
|
Total
Loans
|
2.12%
|
|
2.00%
|
|
2.12%
|
|
2.00%
|
|
Loan Loss Reserve as a %
of
|
|
|
|
|
|
|
|
|
Nonperforming Loans
|
75.78%
|
|
71.54%
|
|
75.78%
|
|
71.54%
|
|
Nonperforming Assets as a
%
|
|
|
|
|
|
|
|
|
of Total
Loans and REO
|
3.83%
|
|
5.00%
|
|
3.83%
|
|
5.00%
|
|
Nonperforming Assets as a
%
|
|
|
|
|
|
|
|
|
of
Total Assets
|
1.98%
|
|
2.78%
|
|
1.98%
|
|
2.78%
|
|
Net Charge offs as a %
of
|
|
|
|
|
|
|
|
|
Average Loans
|
0.57%
|
|
2.70%
|
|
0.54%
|
|
1.24%
|
|
|
|
|
|
|
|
|
|
SOURCE Charter Financial Corporation