CHARTER FINANCIAL CORP 
By WEST POINT, Ga., Jan. 26 /PRNewswire-FirstCall/ -- Charter Financial Corporation (OTC Bulletin Board: CHFN) today reported net income of $1.2 million, or $0.07 per share for the quarter ended December 31, 2009, compared to $957,000, or $0.05 per share, for the same quarter of the prior year. The higher net income was primarily attributable to the earnings on the assets acquired in the acquisition of Neighborhood Community Bank.
The Company's total assets amounted to $944.7 million at December 31, 2009 versus $936.9 million at September 30, 2009 and $813.9 million at December 31, 2008. Loans outstanding increased by $11.6 million during the quarter ended December 31, 2009 to $564.1 million compared to $552.6 million at September 30, 2009.
Total interest income increased to $11.2 million for the quarter just ended compared to $10.0 million for the same quarter last year. Interest expense was lower at $5.0 million for the first quarter measured against $5.9 million for the prior year's corresponding quarter. The combination of higher interest income and lower interest expense resulted in an increase in net interest income to $6.2 million for the current quarter from $4.0 million for the prior year quarter. The net interest margin rose to 2.93% for the quarter versus 2.21% for the comparable quarter the prior year.
The Company had net charge-offs of $166,000 for the quarter compared to $408,000 in the same quarter a year ago. Cumulative net charge-offs since October 2007 were $4.6 million while cumulative provisions for loan losses for the same nine quarters were $8.6 million. A loan loss provision of $800,000 was recorded for the quarter ended December 31, 2009. This provision brings the allowance for loan losses to 2.03% of non covered loans at December 31, 2009 compared to 1.86% of non-covered loans at December 31, 2008 and 1.98% of non covered loans at September 30, 2009.
Total deposits rose to $614.8 million compared with $432.9 million at December 31, 2008 and $597.7 million at September 30, 2009. Borrowings decreased to $217.0 million from $273.0 million for the same quarter of the prior year. The Company had total equity of $101.0 million at the end of the first quarter compared with $103.8 million at December 31, 2008.
About Charter Financial Corporation
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 subsidiary CharterBank are in a mutual holding company structure. CharterBank is headquartered in West Point, Georgia, and operates thirteen 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
Selected Financial Data (in thousands except
share and per share data):
December 31,
------------
2009 2008
---- ----
Unaudited
---------
Total Assets $944,723 $813,933
Loans Receivable, Net 564,136 440,476
Non-covered Loans Receivable, Net 477,882 440,476
Covered Loans Receivable, Net 86,254 -
Mortgage Securities Available for Sale 190,980 234,982
Other Investment Securities 4,210 34,253
Retail Deposits** 497,926 329,585
Core Deposits* 241,506 166,452
Total Deposits 614,755 432,909
Borrowings 217,000 273,000
Total Equity 100,982 103,738
$5.48 $5.60
Book Value per Share
Tangible Book Value per Share 5.20 5.31
2,564,733
Minority Shares Outstanding 2,669,836
Total Shares Outstanding - at Quarter End 18,422,657 18,527,760
Weighted Average Total Shares Outstanding -
Basic 18,409,106 18,569,009
Weighted Average Total Shares Outstanding -
Fully Diluted 18,412,477 18,569,009
Selected Financial Data (in thousands except
share and per share data):
September 30,
-------------
2009
----
Unaudited
---------
Total Assets $936,880
Loans Receivable, Net 552,550
Non-covered Loans Receivable, Net 462,786
Covered Loans Receivable, Net 89,764
Mortgage Securities Available for Sale 201,626
Other Investment Securities 4,435
Retail Deposits** 463,566
Core Deposits* 216,902
Total Deposits 597,634
Borrowings 227,000
Total Equity
98,257
$5.34
Book Value per Share
Tangible Book Value per Share 5.06
Minority Shares Outstanding 2,551,033
Total Shares Outstanding - at Quarter End 18,408,957
Weighted Average Total Shares Outstanding -
Basic 18,417,123
Weighted Average Total Shares Outstanding -
Fully Diluted 18,472,222
*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 and
per share data):
Three months ended
------------------
December 31, September 30,
------------ -------------
2009 2008 2009
---- ---- ----
Unaudited
---------
Total Interest
Income $11,249 $9,989 $12,189
Total Interest
Expense 5,071 5,942 5,917
----- ----- -----
Net Interest
Income 6,178 4,047 6,272
Provision for
Loan Losses 800 350 1,400
--- --- -----
Net Interest
Income after 5,378 3,697 4,872
Provision for
Loan Losses
Noninterest
Income 2,409 2,295 3,480
Noninterest
Expense 6,084 4,684 7,805
----- ----- -----
Income before
Income Taxes 1,703 1,308 547
Income Tax
Expense 501 351 37
--- --- ---
Net Income $1,202 $957 $510
====== ==== ====
Earnings per
Share $0.07 $0.05 $0.03
Earnings per
Share - Fully
Diluted 0.07 0.05 0.03
Cash Dividends
per Share*** 0.25 0.25 0.25
Net Charge-offs 166 225 408
Deposit Fees 1,276 1,206 1,284
Gain on Sale of
Loans 89 129 135
***First Charter, MHC has waived most of its portion of
these dividends, resulting in payment primarily to the
minority stockholders.
Three months ended
------------------
December 31, September 30,
------------ -------------
2009 2008 2009
---- ---- ----
Unaudited
---------
Return on Equity 4.82% 3.71% 2.06%
Return on Assets 0.52 0.48 0.21
Net Interest Margin 2.93 2.21 3.00
Bank Core Capital Ratio 9.38 10.45 9.30
Effective Tax Rate 29.42 26.82 6.83
Dividend Payout Ratio 65.24 69.76 153.79
Ratios of Assets Not Covered:
Loan Loss Reserve as a % of Total
Loans 2.03 1.86 1.98
Loan Loss Reserve as a % of
Nonperforming Assets 47.77 61.70 52.18
Nonperforming Assets as a % of 4.23 3.00 3.74
Total Loans and REO
Net Charge offs as a % of 0.14 0.20 0.35
Average Loans
SOURCE Charter Financial Corporation
