- Net income of $376,000 - Newnan acquisition added $105M in loans
- Acquired assets covered with Loss Sharing Agreement - Newnan
acquisition added $136M in retail deposits WEST POINT, Ga., July 29
/PRNewswire-FirstCall/ -- Charter Financial Corporation
(OTC:CHFN.OB) (BULLETIN BOARD: CHFN.OB) today reported third
quarter fiscal 2009 net income of $376,383, or $0.02 per share,
compared with $1.7 million, or $0.09 per share, for same quarter of
the prior year. Net income for the nine months ended June 30, 2009
was $1.8 million or $0.10 per share compared with $7.6 million or
$0.40 per share for the comparable period in the prior year. The
lower net income for the third quarter compared to the prior year
quarter includes a $1.2 million decrease in net interest income, a
significant portion of which was due to the elimination of Freddie
Mac's cash dividends on common stock of $0.25 per share after the
June 2008 quarter. Non interest income was $750,000 lower than the
prior year quarter. The prior year quarter included $1.3 million in
gain on the sale of Freddie Mac stock and covered calls. The
current year quarter included $514,300 from the sale of mortgage
securities. Non-interest expense for the current year quarter
included $354,600 of FDIC deposit insurance special assessment.
Charter Financial's bank subsidiary, CharterBank, acquired the
assets and assumed the liabilities of Neighborhood Community Bank
of Newnan, Georgia in a transaction with the Federal Deposit
Insurance Corporation on June 26, 2009. In this transaction
CharterBank acquired $105 million in loans and $136 million in
retail deposits with a $26.9 million discount on the assets. As
part of the transaction CharterBank entered into a loss sharing
agreement pursuant to which the FDIC will reimburse CharterBank for
80% of the credit losses on the covered assets which are the
acquired loans and foreclosed real estate. Since the acquisition
occurred at the end of the quarter it had virtually no impact on
income for the quarter. "The acquisition of the deposits of
Neighborhood Community Bank with its four branches is a major step
in building our retail franchise," said Robert L. Johnson, Chairman
and CEO. "We now have 14 branches on the I-85 corridor between
Newnan, Georgia and Auburn, Alabama." "While working through the
acquired problem assets will be a challenge, the combination of the
loss sharing agreement and the purchase discount provide the
opportunity to integrate this acquisition in a way that will
provide significant benefits to our stockholders," continued
Johnson. "We anticipate full systems integration will be complete
in the first quarter of fiscal 2010." CharterBank's regulatory core
capital ratio, while impacted by the increased assets, remains
strong at 8.64%, which is well above the well capitalized
requirement of 5%. The company, including holding company and bank
capital, has 9.96% equity to total assets as of June 30, 2009. "We
continue to closely monitor our asset quality and believe that our
loan loss reserves are adequate," said Johnson. "We charged off
$1.4 million of loans and added $600,000 to our loan loss reserve
for the quarter ended June 30, 2009. Over the last nine months, we
added $3.2 million to the loan loss reserve. Our development loan
portfolio, which has had the most charge-offs and caused the most
additions to reserves on problem loans, is now well seasoned and
well worked." Additional 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 14 branches on the I-85 corridor
from Newnan, 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): June 30, March 31,
September 30, June 30, 2009 2009 2008 2008 ---- ---- ---- ----
Unaudited --------- Total Assets $977,730 $797,328 $801,501
$877,871 Non-covered Loans Receivable, Net 452,469 449,036 428,472
433,700 Covered Loans Receivable, Net 91,383 Mortgage Securities
Available for Sale 209,231 230,723 242,848 250,881 Freddie Mac
Common Stock - - - 53,710 Other Investment Securities 11,477 4,893
34,291 30,327 Core Deposits* 216,364 178,257 169,499 184,528 Retail
Deposits** 461,096 339,911 356,237 382,315 Total Deposits 618,367
433,915 420,175 460,048 Borrowings 257,000 257,000 267,000 257,000
Total Stockholders' Equity 97,341 104,113 102,302 136,085 Book
Value per Share $5.28 $5.64 $5.50 $7.15 Tangible Book Value per
Share 5.00 5.35 5.21 6.87 Minority Shares Outstanding 2,566,559
2,606,559 2,754,536 3,185,439 Total Shares Outstanding 18,424,483
18,464,483 18,612,460 19,042,863 Weighted Average Total Shares
Outstanding - Basic 18,452,395 18,522,909 19,022,259 19,029,060
Weighted Average Total Shares Outstanding - Diluted 18,452,395
18,522,909 19,082,960 19,022,054 ---------- ---------- ----------
---------- --------------------- * Core Deposits includes
transaction accounts, money market accounts, and savings accounts.
** Retail Deposits includes Core Deposits, and certificates of
deposits excluding brokered and wholesale. Charter Financial
Corporation Selected Operating Data (in thousands except share and
per share data): Three months ended Nine months ended
------------------ ----------------- June 30, March 31, June 30,
-------- --------- -------- 2009 2008 2009 2009 2008 ---- ---- ----
---- ---- Unaudited --------- Total Interest Income $9,141 $11,373
$9,241 $28,370 $36,005 Total Interest Expense 5,346 6,442 5,394
16,681 20,552 ----- ----- ----- ------ ------ Net Interest Income
3,795 4,931 3,847 11,689 15,453 Provision for Loan Losses 600 600
2,200 3,150 750 --- --- ----- ----- --- Net Interest Income after
Provision for Loan Losses 3,195 4,331 1,647 8,539 14,703
Noninterest Income 2,418 3,168 3,599 8,312 11,105 Noninterest
Expense 5,388 5,049 4,705 14,777 15,245 ----- ----- ----- ------
------ Income before Income Taxes 225 2,450 541 2,074 10,563 Income
Tax Expense (151) 751 68 268 2,970 ----- --- -- --- ----- Net
Income $376 $1,699 $473 $1,806 $7,593 ==== ====== ==== ======
====== Earnings per Share - Basic $0.02 $0.09 $0.03 $0.10 $0.40
Earnings per Share - Diluted 0.02 0.09 0.03 0.10 0.40 Cash
Dividends per Share 0.25 0.50 0.25 0.75 1.50 Net Charge-offs
(Recoveries) -Legacy Charter Loans 1,396 114 1,434 3,055 917
Deposit Fees 1,129 1,207 1,044 3,780 3,766 Gain on Sale of Loans
234 179 184 546 609 Gain on Sale of Freddie Mac Common Stock -
1,022 - - 3,671 Gain on Covered Calls Related to Freddie Mac Common
Stock - 241 - - 1,719 Three months ended Nine months ended
------------------ ----------------- June 30, March 31, June 30,
2009 2008 2009 2009 2008 ---- ---- ---- ---- ---- Unaudited
--------- Return on Equity 1.46% 4.32% 1.78% 2.31% 5.49% Return on
Assets 0.19 0.75 0.23 0.30 1.08 Net Interest Margin 2.08 2.35 2.08
2.12 2.36 Bank Core Capital Ratio 8.64 9.79 10.78 8.64 9.79
Effective Tax Rate (66.87) 30.65 12.65 12.93 28.12 Ratio of Assets
Not Covered: Loan Loss Reserve as a % of Total Loans 1.81 1.33 1.99
1.81 1.33 Loan Loss Reserve as a % of Nonperforming Assets 43.76
53.69 43.17 43.76 53.69 Nonperforming Assets as a % of Total Loans
and REO 4.08 2.46 4.56 4.08 2.46 Net Charge-offs (annualized) as a
% of Average Loans 1.22 0.11 1.26 0.90 0.29 DATASOURCE: Charter
Financial Corporation CONTACT: Robert L. Johnson, Chairman &
CEO, , or Curt Kollar, CFO, , +1-706-645-1391, both of Charter
Financial Corporation; or Woody Wallace of The Investor Relations
Company, +1-312-245-2700, , for Charter Financial Corporation Web
Site: http://www.charterbank.net/
Copyright