Charter Financial Adjusts Fiscal 2009 Earnings

-- Net income $2,315,000 for the fiscal year

-- Net income for fourth quarter $510,000

Jan 07, 2010, 18:23 ET from Charter Financial Corporation

WEST POINT, Ga., Jan. 7 /PRNewswire-FirstCall/ -- Charter Financial Corporation (OTC Bulletin Board: CHFN) today reported fiscal 2009 (ended September 30, 2009) net income of $2,315,000, or $0.13 per share, compared with $10.5 million, or $0.55 per share, for the prior fiscal year. Earnings have been adjusted from the previously reported earnings of $2.8 million based on changes in accounting for the FDIC assisted acquisition of the assets and liabilities of Neighborhood Community Bank.

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.

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               $936,880           $801,501         $977,730
    Loans Receivable, Net       552,550            428,472          543,852
         Non-covered Loans
          Receivable, Net       462,786            428,472          452,469
         Covered Loans
          Receivable, Net        89,764                  -           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**           463,566            356,237          461,096
    Total Deposits              597,634            420,175          618,367
    Borrowings                  227,000            267,000          257,000
    Total Stockholders'
     Equity                      98,257            102,302           97,341


    Book Value per Share           5.34               5.50             5.28
    Tangible Book
     Value per Share               5.06               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             $40,559     $46,378  $12,189    $10,373     $9,141
    Total Interest
     Expense             22,599      26,771    5,917      6,219      5,346
                         ------      ------    -----      -----      -----
       Net Interest
        Income           17,960      19,607    6,272      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     13,410      16,357    4,872      1,654      3,195
    Noninterest Income   11,792      18,950    3,480      7,846      2,418
    Noninterest
     Expense             22,581      20,284    7,805      5,040      5,388
                         ------      ------    -----      -----      -----
       Income before
        Income Taxes      2,621      15,023      547      4,460        225
    Income Tax Expense
     (Benefit)              306       4,491       37      1,521       (151)
                            ---       -----      ---      -----       ----
       Net Income        $2,315     $10,532     $510     $2,939       $376
                         ======     =======     ====     ======       ====

    Earnings per Share    $0.13       $0.55    $0.03      $0.16      $0.02
    Earnings per Share
     - Fully Diluted       0.12        0.55     0.03       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 Fee           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
                           ----------             ------------------
    Performance
     Ratios:             September 30,        September 30,          June 30,
                         -------------        -------------          --------
                         2009       2008    2009         2008          2009
                         ----       ----    ----         ----          ----
                                          Unaudited
                                          ---------
    Return on Equity     2.25%      6.23%   2.06         9.51%         1.46%
    Return on Assets     0.27       1.16    0.21         1.41          0.19
    Net Interest
     Margin              2.35       2.32    3.00         2.16          2.08
    Bank Core
     Capital Ratio       9.30      10.51    9.30        10.51          8.64
    Effective Tax Rate
     Expense (Benefit)  11.66      29.89    6.83        34.10        (66.87)
    Dividend Payout
     Ratio             145.13      66.97  153.79        27.19         58.44

    Ratios of Assets
     Not Covered:
    Loan Loss Reserve
     as a % of Total
     Loans               1.98       1.89    1.97         1.88          1.81
    Loan Loss Reserve
     as a % of
     Nonperforming
     Assets             51.58      61.29   52.18        61.29         43.76
    Nonperforming
     Assets as a %
     of Total Loans
     and REO             3.79       3.06    3.74         3.06          4.08
    Net Chargeoffs
     (Recoveries)
     as a % of Average
     Loans               0.71       0.24    0.35         0.09          1.22
    ------------------   ----       ----    ----         ----          ----


SOURCE Charter Financial Corporation



RELATED LINKS

http://www.charterbank.net