Charter Financial Announces Acquisition of Neighborhood Community Bank
June 26 2009 - 7:18PM
PR Newswire (US)
WEST POINT, Ga., June 26 /PRNewswire-FirstCall/ -- Charter
Financial Corporation (OTC:CHFN) (BULLETIN BOARD: CHFN) announced
today that its wholly-owned subsidiary, CharterBank, has entered
into an agreement with the Federal Deposit Insurance Corporation
(FDIC) to purchase the assets and assume the deposit liabilities of
Neighborhood Community Bank. The Georgia Department of Banking and
Finance declared Neighborhood Community Bank closed today and
appointed the FDIC as receiver. The FDIC then assigned the assets
and deposit liabilities of Neighborhood Community Bank to
CharterBank under a loss sharing agreement. "We are delighted to
welcome the customers of Neighborhood Community to the CharterBank
family of valued customers," says Robert L. Johnson, Chief
Executive Officer of Charter Financial Corporation. "It is our
objective to make this transition as transparent and easy as
possible for both Neighborhood Community customers and employees.
Because CharterBank elected to assume both insured and non-insured
deposits, no customers of Neighborhood Community Bank will lose any
of their deposits. "Under the loss sharing agreement," Johnson
continued, "the FDIC will reimburse CharterBank for a percentage of
the losses on Neighborhood Community Bank's loans and foreclosed
properties. Also, as part of the loss sharing agreement, the
acquired assets receive a favorable treatment for regulatory
capital purposes so the impact on our regulatory capital ratios
will be modest." As of March 31, 2009, Neighborhood Community Bank
reported total assets of $213 million, loans of $154 million,
deposits of $190 million and borrowings of $13 million. Under the
terms of the agreement, CharterBank has the option to purchase, or
to assume the leases on, all four Neighborhood Community Bank
locations, all of which extend CharterBank's market in the
Interstate 85 corridor. "This acquisition is very good for the
customers of Neighborhood Community Bank and CharterBank," said
Johnson. "Neighborhood Community customers will now have enhanced
services. For CharterBank, Neighborhood Community Bank fits
perfectly into our Interstate 85 corridor by extending the market
through Newnan." The agreement covers only the assets and
liabilities of Neighborhood Community Bank. Assets, liabilities and
common stock of Neighborhood Community Bank's former parent
company, Newnan Coweta Bancshares, Inc., have not been purchased or
assumed by CharterBank or Charter Financial Corporation. Charter
Financial Corporation is a savings and loan holding company and the
parent of CharterBank, a full-service community bank and a federal
savings institution. CharterBank is headquartered in West Point,
Georgia, and now operates fourteen branches on the I-85 corridor
from Newnan, Georgia, to Auburn, Alabama. The Company also operates
three loan production offices in Georgia. CharterBank's deposits
are insured by the Federal Deposit Insurance Corporation.
Additional information, including financial highlights, is
available on the company's website, http://www.charterbank.net/.
Persons interested in receiving e-mail notifications of news about
the company may do so by completing the registration form on the
investor relations page of the company's website. DATASOURCE:
Charter Financial Corporation CONTACT: Robert L. Johnson, President
& CEO, , or Curtis R. Kollar, Chief Financial Officer, , both
of Charter Financial Corporation, +1-706-645-1391; or 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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