- Net Income $473,000 WEST POINT, Georgia, May 11
/PRNewswire-FirstCall/ -- Charter Financial Corporation (OTC:CHFN)
(BULLETIN BOARD: CHFN) today reported second quarter fiscal 2009
net income of $473,000, or $0.03 per share, compared with $3.9
million, or $0.20 per share, for same quarter of the prior year.
Net income for the six months ended March 31, 2009 was $1.4 million
or $0.08 per share compared with $5.9 million or $0.31 per share
for the comparable period in the prior year. Net income for the
quarter was impacted by a provision for loan losses of $2.2 million
and a gain on the sale of land acquired for a branch site of $1.7
million. Net interest income for the quarter was lower than the
comparable period of the prior year by $1.3 million. This decrease
was due to our receiving no dividends on Freddie Mac securities
over the quarter, as opposed to dividends of $829,000 paid to us in
the comparable period of 2008, and our maintaining higher levels of
liquidity in the form of low yielding overnight funds in the
current quarter, combined with higher levels of nonperforming
assets in the second quarter of 2009 compared to the second quarter
of 2008. The prior year quarter also included a gain on the sale of
Freddie Mac stock of $1.3 million and income from covered calls of
$2.0 million. "We continue to monitor our asset quality closely and
believe that our loan loss reserves are adequate", said Robert L.
Johnson, President and CEO. "Less than 15% of our assets are 1-4
family acquisition, development or construction loans. Our loan
loss provision after the current quarter provision is 1.99% of
loans. Capital is strong, with CharterBank's ratio of core capital
to assets equaling 10.78%, more than double the well capitalized
requirement of 5%." Discussing the company's outlook, Johnson said:
"We continue to anticipate a significant boost to the economy in
our market area over the next several years from the new KIA Motors
Corporation assembly plant to be located on Interstate 85 between
West Point and LaGrange which is in the middle of our market
focusing on the I-85 corridor." "The plant is tentatively scheduled
to produce the first cars for sale in December 2009. Kia and its
suppliers have announced intentions to employ approximately 4,300
in West Point, Georgia and several thousand more in surrounding
communities. As a leading community bank in the area, we expect to
see accelerated growth in our retail banking business." "We
continue to make progress in building our retail franchise. Net
loans receivable climbed to a record $449.0 million, which is up
$8.6 million from December 31, 2008 and up $35.0 million from March
31, 2008," concluded Johnson. Total assets were $797.3 million and
total deposits were $433.9 million. Additional financial
information is available at http://www.charterbank.net/. Charter
Financial Corporation is a savings and loan holding company and the
parent company of CharterBank, a full-service community bank and a
federal savings institution. Charter Financial Corporation and
CharterBank are in a mutual holding company structure. CharterBank
is headquartered in West Point, Georgia, and operates ten branches
on the I-85 corridor from LaGrange, Georgia to Auburn, Alabama.
CharterBank's deposits are insured by the Federal Deposit Insurance
Corporation. Forward-Looking Statements This release may contain
"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. 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. FINANCIAL
TABLES FOLLOW Charter Financial Corporation Selected Financial Data
(in thousands except share and per share data): March 31, December
31, September 30, March 31, 2009 2008 2008 2008 Unaudited Total
Assets $797,328 $813,933 $801,501 $905,426 Loans Receivable, Net
449,036 440,476 428,472 414,076 Mortgage Securities Available for
Sale 230,723 234,982 242,848 270,952 Freddie Mac Common Stock - - -
83,999 Other Investment Securities 4,893 34,253 34,291 36,548 Core
Deposits* 178,257 166,452 169,499 188,397 Retail Deposits** 339,911
329,585 356,237 390,284 Total Deposits 433,915 432,909 420,175
453,102 Borrowings 257,000 273,000 267,000 257,000 Realized
Stockholders' Equity*** 108,520 108,909 109,152 110,474 Accumulated
Other Comprehensive Income**** (4,407) (5,171) (6,850) 47,413 Total
Stockholders' Equity 104,113 103,738 102,302 157,887 Book Value per
Share $5.64 $5.60 $5.50 $8.30 Tangible Book Value per Share 5.35
5.31 5.21 8.01 Minority Shares Outstanding 2,606,559 2,669,836
2,754,536 3,564,622 Total Shares Outstanding 18,464,483 18,527,760
18,612,460 19,028,280 Weighted Average Total Shares Outstanding -
Basic 18,522,909 18,569,009 19,022,259 19,018,570 Weighted Average
Total Shares Outstanding - Diluted 18,522,909 18,569,009 19,082,960
19,086,069 * Core Deposits includes transaction accounts, money
market accounts, and savings accounts. ** Retail Deposits includes
Core Deposits, and certificates of deposits excluding brokered and
wholesale. ***Includes Total Stockholders' Equity less Accumulated
Other Comprehensive Income. ****Includes unrealized gains and
losses on Freddie Mac common stock and other investment securities
adjusted for income taxes at a tax rate of 38.6%. Charter Financial
Corporation Selected Operating Data (in thousands except share and
per share data): Three months ended Six months ended March 31,
December 31, March 31, 2009 2008 2008 2009 2008 Unaudited Total
Interest Income $9,241 $11,942 $9,989 $19,229 $24,631 Total
Interest Expense 5,394 6,812 5,942 11,336 14,109 Net Interest
Income 3,847 5,130 4,047 7,893 10,522 Provision for Loan Losses
2,200 150 350 2,550 150 Net Interest Income after Provision for
Loan Losses 1,647 4,980 3,697 5,343 10,372 Noninterest Income 3,599
5,173 2,295 5,894 7,938 Noninterest Expense 4,705 4,828 4,684 9,389
10,197 Income before Income Taxes 541 5,325 1,308 1,848 8,113
Income Tax Expense 68 1,451 351 419 2,219 Net Income $473 $3,874
$957 $1,429 $5,894 Earnings per Share - Basic $0.03 $0.20 $0.05
$0.08 $0.31 Earnings per Share - Diluted 0.03 0.20 0.05 0.08 0.31
Cash Dividends per Share 0.25 0.50 0.25 0.50 1.00 Net Charge-offs
(Recoveries) 1,434 285 225 1,659 803 Deposit Fees 1,044 1,248 1,206
2,250 2,559 Gain on Sale of Loans 184 170 129 312 430 Gain on Sale
of Freddie Mac Common Stock - 1,302 - - 2,649 Gain on Covered Calls
Related to Freddie Mac Common Stock - 1,993 - - 1,478 Three months
ended Six months ended March 31, December 31, March 31, 2009 2008
2008 2009 2008 Unaudited Return on Equity 1.78% 9.24% 3.71% 2.73%
6.30% Return on Assets 0.23 1.70 0.48 0.36 1.25 Net Interest Margin
2.08 2.40 2.21 2.15 2.37 Loan Loss Reserve as a % of Total Loans
1.99 1.28 1.86 1.99 1.28 Loan Loss Reserve as a % of Nonperforming
Assets 43.17 58.04 61.70 43.17 58.04 Nonperforming Assets as a % of
Total Loans and REO 4.56 2.19 3.00 4.56 2.19 Net Chargeoffs as a %
of Average Loans 1.26 0.27 0.05 0.74 0.39 Nonperforming Assets to
Total Assets 2.65 1.02 1.67 2.65 1.02 Bank Core Capital Ratio 10.78
9.67 10.45 10.78 9.67 Dividend Payout Ratio 141.24 41.11 69.76
93.39 79.10 Effective Tax Rate 12.65 27.25 26.82 22.67 27.36
DATASOURCE: Charter Financial Corporation CONTACT: Robert L.
Johnson, President & CEO, , or Curt Kollar, CFO, ,
+1-706-645-1391, both of Charter Financial Corporation; Woody
Wallace of The Investor Relations Company, +1-312-245-2700, , for
Charter Financial Corporation Web Site: http://www.charterbank.net/
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