- Net income $2,847,000 for the fiscal year - Net income for fourth
quarter $1,041,000 - Nonperforming assets not covered by FDIC loss
sharing agreement down from prior quarter WEST POINT, Ga., Nov. 16
/PRNewswire-FirstCall/ -- Charter Financial Corporation (OTC:CHFN)
(BULLETIN BOARD: CHFN) today reported fiscal 2009 net income of
$2,847,000, or $0.15 per share, compared with $10.5 million, or
$0.55 per share, for the prior fiscal year. Prior year net income
included $9.6 million in pre-tax gains on the sale of Freddie Mac
common stock compared to none in the fiscal year just ended. Net
income for the three months ended September 30, 2009 was $1.0
million, or $0.06 per share, compared with $2.9 million, or $0.16
per share, for the comparable period in the prior year. Net
interest income was lower at $18.1 million for fiscal year 2009
versus $19.6 million for fiscal year 2008. For the fourth quarter
of fiscal year 2009, net interest income was up significantly to
$6.4 million from $3.8 million for the third quarter, primarily due
to the acquisition of the assets and liabilities of Neighborhood
Community Bank on June 26, 2009, pursuant to a loss-share agreement
with the FDIC. Noninterest income amounted to $13.0 million for the
2009 fiscal year compared with $19.0 million for the prior fiscal
year. The fiscal year just ended included $2.2 million in gains on
the sale of mortgage securities, $2.1 million in gains on the sale
of real estate and $779,000 of one time purchase gain relating to
the closing of the Neighborhood Community Bank acquisition while
the prior year included $9.6 million from the sale of Freddie Mac
stock. Noninterest expense was $23.0 million for the year just
ended compared with $20.3 million for the prior year. FDIC
insurance premiums in the year just ended amounted to $1.2 million,
which included $448,000 in special assessments, up from $124,000 in
the prior fiscal year. Noninterest expense for fiscal year 2009
also included $1.4 million for a Federal Home Loan Bank borrowing
prepayment penalty and $670,000 in foreclosed real estate write
downs. The company sold $72 million in mortgage securities in the
fourth quarter of fiscal year 2009 and used part of the proceeds to
pay off $25 million in FHLB borrowings despite the $1.4 million
prepayment penalty because that action led to several positive
results. It will save the company future interest payments on those
borrowings that carried an interest rate of 6.22% and reduced the
company's reliance on wholesale funding, which improved the bank's
capital ratios and will have a positive affect on net interest
income going forward. Total retail deposits rose to $470.0 million
at September 30, 2009 from $356.2 million at September 30, 2008.
The company added $136 million in retail deposits in the
Neighborhood Community Bank acquisition. Loans increased to $550.7
million at September 30, 2009 from $428.5 million at September 30,
2008. Of the September 30, 2009 balance, $88.1 million is covered
under a loss sharing agreement with the FDIC where the bank will be
reimbursed for 80% of the losses on the covered portfolio up to a
certain threshold and 95% of the losses on the covered portfolio
above this threshold, together with certain related expenses.
During the quarter ended September 30, 2009, the company received
$23.7 million from the FDIC to reimburse losses under the loss
sharing agreement. "We have a good start in working through the
acquired problem assets. Our dedicated special assets team is in
place developing and working through resolution plans. This will
take some time since resolutions often involve legal processes and
disposition of property acquired through those processes. Our goal
is to work with distressed borrowers on workout plans when feasible
and in the best interests of all parities. Fortunately, a large
portion of the loan portfolio is performing," said Robert L.
Johnson, Chairman and CEO. "Other aspects of the acquisition are
going well," Johnson continued. "Retention of core deposits has
exceeded expectations. We hired a strong, locally based executive
for this market and we completed full systems integration this
weekend." CharterBank's regulatory core capital ratio remains
strong at 9.32%, well above the well capitalized requirement of 5%.
Including its holding company and bank capital, equity to total
assets totaled 10.62% as of September 30, 2009. For legacy
CharterBank assets not covered under the loss sharing agreement,
nonperforming assets as a percentage of loans and foreclosed real
estate dropped slightly to 3.74% at September 30, 2009, from 4.08%
at 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 $3.5 million of loans and added $4.6
million to our loan loss reserve for the year ended September 30,
2009. The majority of our charge-offs have come from our real
estate development portfolio. This portfolio is well seasoned."
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 13 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 data): September
30, September 30, June 30, 2009 2008 2009 Unaudited
-------------------------------------- Total Assets $929,804
$794,629 $977,730 Loans Receivable, Net 550,744 428,472 543,852
Non-covered Loans Receivable, Net 462,615 428,472 452,469 Covered
Loans Receivable, Net 88,129 - 91,383 Mortgage Securities Available
for Sale 201,626 242,848 209,231 Other Investment Securities 4,435
34,291 11,477 Core Deposits* 216,902 169,499 216,364 Retail
Deposits** 469,964 356,237 461,096 Total Deposits 597,107 420,175
618,367 Borrowings 227,000 267,000 257,000 Total Stockholders'
Equity 98,788 102,302 97,341 Book Value per Share 5.37 5.50 5.28
Tangible Book Value per Share 5.08 5.21 5.00 Minority Shares
Outstanding 2,551,033 2,754,536 2,566,559 Total Shares Outstanding
- at Quarter End 18,408,957 18,612,460 18,424,483 Weighted Average
Total Shares Outstanding - Basic 18,417,123 19,022,870 18,452,395
Weighted Average Total Shares Outstanding - Fully Diluted
18,472,222 19,072,917 18,452,395 * Core deposits include
transaction accounts, money market accounts, and savings accounts.
** Retail deposits include Core Deposits, and certificates of
deposits excluding brokered and wholesale. Selected Operating Data
(in thousands except share data): Year Ended Three months ended
----------------- -------------------------- September 30,
September 30, June 30, ----------------- ---------------- --------
2009 2008 2009 2008 2009 ------- ------- ------- ------- --------
Unaudited ------------------------------------------------ Total
Interest Income $41,091 $46,378 $12,720 $10,373 $9,141 Total
Interest Expense 22,985 26,771 6,303 6,219 5,346 ------- -------
------- ------- ------ Net Interest Income 18,106 19,607 6,417
4,154 3,795 Provision for Loan Losses 4,550 3,250 1,400 2,500 600
------- ------- ------- ------- ------ Net Interest Income after
Provision for Loan Losses 13,556 16,357 5,017 1,654 3,195
Noninterest Income 12,957 18,950 4,645 7,846 2,418 Noninterest
Expense 23,027 20,284 8,250 5,040 5,388 ------- ------- -------
------- ------ Income before Income Taxes 3,486 15,023 1,412 4,460
225 Income Tax Expense (Benefit) 639 4,491 371 1,521 (151) -------
------- ------- ------- ------ Net Income $2,847 $10,532 $1,041
$2,939 $376 ======= ======= ======== ======= ====== Earnings per
Share $0.15 $0.55 $0.06 $0.16 $0.02 Earnings per Share - Fully
Diluted 0.15 0.55 0.06 0.15 0.02 Cash Dividends per Share*** 1.00
1.75 0.25 0.25 0.25 Net Charge-offs (Recoveries)- Legacy Charter
Loans 3,462 1,019 408 102 1,396 Deposit Fees 4,664 5,027 1,284
1,262 1,129 Gain on Sale of Loans 682 762 135 153 234 Gain on Sale
of Freddie Mac Common Stock - 9,557 - 5,885 - Gain (Loss) on
Covered Calls Related to Freddie Mac Common Stock - 1,723 - 4 - ***
First Charter, MHC has waived its portion of these dividends,
resulting in payment only to the minority stockholders. Year Ended
Three months ended -------------- -------------------------
September 30, September 30, June 30, -------------- --------------
-------- 2009 2008 2009 2008 2009 ----- ----- ------ ------
-------- Performance Ratios: Unaudited
----------------------------------------- Return on Equity 2.77%
6.23% 4.21% 9.51% 1.46% Return on Assets 0.34 1.16 0.44 1.41 0.19
Net Interest Margin 2.37 2.32 3.00 2.16 2.08 Bank Core Capital
Ratio 9.32 10.51 9.32 10.51 8.64 Effective Tax Rate Expense
(Benefit) 18.34 29.89 26.29 34.10 (66.87) Dividend Payout Ratio
118.05 66.97 75.34 27.19 Ratios of Assets Not Covered: Loan Loss
Reserve as a % of Total Loans 1.97 1.88 1.97 1.88 1.81 Loan Loss
Reserve as a % of Nonperforming Assets 52.18 61.29 52.18 61.29
43.76 Nonperforming Assets as a % of Total Loans and REO 3.74 3.06
3.74 3.06 4.08 Net Chargeoffs (Recoveries) as a % of Average Loans
0.76 0.24 0.35 0.09 1.22
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DATASOURCE: Charter Financial Corporation CONTACT: Robert L.
Johnson, Chairman & CEO, , or Curt Kollar, CFO, , 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/
Copyright