NEWS RELEASE
|
| | |
| Contact: | | |
| Robert L. Johnson, Chairman & CEO | | At Dresner Corporate Services |
| Curt Kollar, CFO | | Steve Carr |
| 706-645-1391 | | 312-780-7211 |
| bjohnson@charterbank.net or | | scarr@dresnerco.com |
| ckollar@charterbank.net | | |
CHARTER FINANCIAL ANNOUNCES FISCAL
2014 EARNINGS OF $6.0 MILLION
•Total fiscal 2014 average equity to average assets of 24.62%
•Net non-covered organic loan growth of 12.2% over prior year
•Tangible book value per share of $12.06 at September 30, 2014, up $0.25 year over year
•Basic and diluted EPS of $0.29 and $0.28, respectively, for the year
•Nonperforming non-covered assets at 0.65% of total non-covered assets at September 30, 2014
•Repurchased 4.9 million shares for $53.2 million during fiscal 2014
West Point, Georgia, November 5, 2014 — Charter Financial Corporation (the “Company”) (NASDAQ: CHFN) today reported net income of $6.0 million, or $0.29 and $0.28 per basic and diluted share, respectively, for the year ended September 30, 2014, compared with $6.3 million, or $0.30 per basic and diluted share, for the year ended September 30, 2013. The decrease in net income was primarily attributable to a $5.8 million decrease in discount accretion and amortization of the FDIC loss share receivable, partially offset by an increase to noninterest income and decreases to both interest expense and provision for loan losses.
Net income for the quarter ended September 30, 2014, was $1.0 million, or $0.06 per basic and diluted share, compared with $920,000, or $0.04 per basic and diluted share, for the quarter ended September 30, 2013. The slight increase in net income and earnings per share for the quarter ended September 30, 2014, was primarily the result of reduced provision for loan losses due to improved credit quality and higher noninterest income, partially offset by lower discount accretion and amortization. Earnings per share for the quarter ended September 30, 2014 also benefited from a lower weighted average number of common shares outstanding as a result of the share repurchases made during fiscal 2014.
Quarterly Operating Results
The improvement in reported quarterly earnings for the fourth quarter of fiscal 2014 compared with the fourth quarter of fiscal 2013 resulted primarily from the following items:
| |
| • | Borrowing expense decreased $124,000, or 17.1%. |
| |
| • | Deposit expense decreased by $160,000, or 17.1%. |
| |
| • | The cost of deposits decreased to 49 basis points for the quarter ended September 30, 2014, compared to 55 basis points for the quarter ended September 30, 2013. |
| |
| • | Net interest margin excluding accretion and amortization of loss share receivable was 2.95% for the quarter ended September 30, 2014 compared with 2.68% the same quarter of 2013. |
| |
| • | Provision for covered loan losses decreased by $122,000. |
| |
| • | No provision required for non-covered loans compared to $300,000 the same quarter of 2013. |
| |
| • | Noninterest income increased by $906,000, or 32.3%. |
| |
| • | Deposit and bankcard fee income increased by a combined $501,000. |
| |
| • | Gain on sale of loans and loan servicing release fees increased by $174,000. |
The improvement was partially mitigated by the following items:
| |
| • | Net decrease to total interest income of $1.4 million due to impact of accretion income and FDIC loss share receivable amortization. |
| |
| • | The average yield on loans was 5.05% for the quarter ended September 30, 2014 compared to 6.14% for the quarter ended September 30, 2013. |
| |
| • | Salaries and employee benefits expense increased by $285,000, primarily related to stock awards made during the 2014 fiscal year. |
Chairman and CEO Robert L. Johnson said, “We are pleased with our progress in improving our core earnings with $6.0 million in net income for the year in spite of having $5.8 million less in net discount accretion and amortization than we had in the prior year. We look forward to additional improvements in core earnings by building our non-covered loan portfolio while also improving noninterest income.”
Financial Condition
The Company's total assets were $1.0 billion at September 30, 2014, a decrease of $79.0 million from September 30, 2013, due predominantly to the reduction of cash and cash equivalents as a result of the Company's share repurchase programs. Net non-covered loans grew $65.9 million, or 14.0%, to $536.7 million at September 30, 2014, from $470.9 million at September 30, 2013. Of the $65.9 million in net non-covered loan growth, $8.3 million was due to a transfer of non-single family loans that are no longer covered by the FDIC due to the expiration of a non-single family loss sharing agreement during 2014. At September 30, 2014, $69.6 million of net loans receivable were covered by FDIC loss sharing, down from $109.0 million at September 30, 2013, due to the continued progress through the resolution process on loss share assets as well as due to the expired agreement mentioned previously.
Mr. Johnson continued, “In spite of the persisting slow-growth economic activity in our markets, we increased our net organic loan portfolio by $25.9 million during the quarter ended September 30, 2014 and $57.6 million during the year ended September 30, 2014, an increase of 12.2%, and hope to see this trend continue in the coming year.”
Total deposits were $717.2 million at September 30, 2014, compared with $751.3 million at September 30, 2013 due primarily to a $44.9 million decrease in time deposits. Core deposits increased from $475.4 million at September 30, 2013, to $486.2 million at September 30, 2014, due primarily to an increase in transaction accounts.
Total stockholders' equity decreased to $225.0 million at September 30, 2014, compared to $273.8 million at September 30, 2013, due predominantly to $53.2 million of share repurchases during fiscal 2014.
Net Interest Income and Net Interest Margin
Net interest income decreased to $7.1 million for the quarter ended September 30, 2014, compared with $8.3 million for the quarter ended September 30, 2013. Interest income decreased by $1.5 million while interest expense decreased by $284,000 quarter over quarter. The Company's net interest margin, excluding the effects of purchase accounting, increased to 2.95% for the quarter ended September 30, 2014, compared with 2.68% for the quarter ended September 30, 2013. Net interest margin, including the impact of loss share accounting, was 3.14% for the quarter ended September 30, 2014, and 3.44% for the quarter ended September 30, 2013.
Net interest income decreased to $29.9 million for the year ended September 30, 2014, from $35.3 million for the year ended September 30, 2013. Total interest income decreased to $35.6 million for the year ended September 30, 2014, compared to $42.6 million for the year ended September 30, 2013, due to lower average yields on loans and a decline in accretion income on acquired covered loans. Interest expense decreased to $5.7 million for the year ended September 30, 2014, compared with $7.4 million for the year ended September 30, 2013, primarily as a result of lower interest expense on certificates of deposit and borrowings. The Company's net interest margin, excluding the effects of purchase accounting, for the years ended September 30, 2014 and 2013 was 2.87% and 2.82%, respectively, while net interest margin, including the effects of purchase accounting, for the same periods was 3.22% and 3.82%, respectively.
Provision for Loan Losses
The Company recorded no provision for loan losses on non-covered loans and a negative provision of $127,000 on covered loans for the quarter ended September 30, 2014, compared to a provision of $300,000 on non-covered loans and a negative provision of $5,000 on covered loans for the same quarter in 2013.
For the year ended September 30, 2014, provision for loan losses on non-covered loans was $300,000 compared to a provision of $1.4 million for the year ended September 30, 2013. This decrease was due to an overall improvement in the non-covered loan portfolio. A negative provision for loan losses on covered loans of $1.0 million was recorded for the year ended September 30, 2014 due to improved credit quality and workout experience compared with an $89,000 provision for the year ended September 30, 2013.
Accounting for FDIC-Assisted Acquisitions
Mr. Johnson said, “We are pleased we have reduced the FDIC indemnification asset to $10.5 million. This is evidence we are in the homestretch in resolving the acquired problem assets. We continue evaluating the cash flows of the purchased loans and adjusting the indemnification asset, discount accretion and amortization of the indemnification asset based on revised cash flow estimates. We currently project remaining discount accretion of $6.0 million and $2.9 million in amortization resulting in a net future pre-tax income impact of $3.1 million from this purchase accounting.”
Noninterest Income and Expense
Noninterest income for the quarter ended September 30, 2014 was up $906,000 compared with the same period in fiscal 2013, due primarily to an increase in bankcard and deposit fees. Noninterest income increased $2.6 million to $14.3 million for the year ended September 30, 2014, compared with $11.7 million for fiscal 2013, due primarily to an increase in bankcard and deposit fees as well as a true-up receipt from the completion and renegotiation of a processing contract. As the use of bankcards increase due to the continued transition from paper to electronic transactions, the Company has experienced significant growth in third-party processing fees associated with this increased usage.
Noninterest expense for the quarter ended September 30, 2014 decreased slightly to $9.4 million compared with $9.5 million for the same quarter in fiscal 2013. Similarly, for the year ended September 30, 2014 noninterest expense remained relatively unchanged at $36.2 million compared with $36.3 million for fiscal 2013.
Asset Quality
Asset quality remained strong with nonperforming assets not covered by loss sharing agreements at 0.65% of total non-covered assets and the allowance for loan losses at 1.55% of total non-covered loans and 199.64% of nonperforming non-covered loans at September 30, 2014. The Company had net loan charge-offs of $132,000 on non-covered loans for the three months ended September 30, 2014, compared to net loan charge-offs of $492,000 on non-covered loans for the same period in fiscal 2013. For the year ended September 30, 2014, net charge-offs as a percent of average non-covered loans was 0.08% compared to 0.32% for fiscal 2013.
Capital Management
During the quarter ended September 30, 2014, the Company repurchased 1.7 million shares for approximately $18.8 million, or $11.06 per share.
Mr. Johnson said, “Since December 2013, we have completed three stock buyback programs, whereby the Company repurchased a combined 4.9 million shares, or approximately 21% of our common stock, at a discount to tangible book value. Meanwhile, in September we announced the approval of a new stock buyback program for up to 1.8 million shares, or approximately 10% of our outstanding shares, of which 1.2 million have been repurchased subsequent to fiscal year end for an average price of $10.92 per share. The 6.1 million of total shares repurchased were purchased at a combined discount to tangible book value of $6.6 million.”
Mr. Johnson concluded, “The Company's solid financial position affords us the ability to repurchase these shares which currently trade at a discount to tangible book value per share. We believe that this use of capital, along with our quarterly cash dividend, provides excellent stockholder value. In the coming fiscal year, we will continue to explore the opportunity for accretive acquisitions, organically grow our loan portfolio and improve profitability through the reduction of expenses and increased margins.”
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. On April 8, 2013, Charter Financial completed its conversion and reorganization from the mutual holding company form of organization to the stock holding company form of organization. CharterBank is headquartered in West Point, Georgia, and operates branches in West Central Georgia, East Central Alabama, and the Florida Gulf Coast. CharterBank's deposits are insured by the Federal Deposit Insurance Corporation.
Forward-Looking Statements
This release contains “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. Except as required by law, 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.
Charter Financial Corporation
Condensed Consolidated Statements of Financial Condition (unaudited)
|
| | | | | | | |
| | September 30, 2014 | | September 30, 2013 |
| Assets |
| Cash and amounts due from depository institutions | $ | 10,996,959 |
| | $ | 10,069,875 |
|
| Interest-earning deposits in other financial institutions | 88,465,994 |
| | 151,382,606 |
|
| Cash and cash equivalents | 99,462,953 |
| | 161,452,481 |
|
| Loans held for sale, fair value of $2,090,469 and $1,883,244 | 2,054,722 |
| | 1,857,393 |
|
| Securities available for sale | 188,743,273 |
| | 215,118,407 |
|
| Federal Home Loan Bank stock | 3,442,900 |
| | 3,940,300 |
|
| Loans receivable: | |
| | |
|
| Not covered under FDIC loss sharing agreements | 546,570,720 |
| | 480,152,265 |
|
| Covered under FDIC loss sharing agreements | 70,631,743 |
| | 112,915,868 |
|
| Allowance for loan losses (covered loans) | (997,524 | ) | | (3,924,278 | ) |
| Unamortized loan origination fees, net (non-covered loans) | (1,364,853 | ) | | (1,100,666 | ) |
| Allowance for loan losses (non-covered loans) | (8,473,373 | ) | | (8,188,896 | ) |
| Loans receivable, net | 606,366,713 |
| | 579,854,293 |
|
| Other real estate owned: | |
| | |
|
| Not covered under FDIC loss sharing agreements | 1,757,864 |
| | 1,615,036 |
|
| Covered under FDIC loss sharing agreements | 5,557,927 |
| | 14,068,846 |
|
| Accrued interest and dividends receivable | 2,459,347 |
| | 2,728,902 |
|
| Premises and equipment, net | 20,571,541 |
| | 21,750,756 |
|
| Goodwill | 4,325,282 |
| | 4,325,282 |
|
| Other intangible assets, net of amortization | 423,676 |
| | 803,886 |
|
| Cash surrender value of life insurance | 47,178,128 |
| | 39,825,881 |
|
| FDIC receivable for loss sharing agreements | 10,531,809 |
| | 29,941,862 |
|
| Deferred income taxes | 10,791,570 |
| | 11,350,745 |
|
| Other assets | 6,693,433 |
| | 771,779 |
|
| Total assets | $ | 1,010,361,138 |
| | $ | 1,089,405,849 |
|
| | | | |
| Liabilities and Stockholders’ Equity |
| Liabilities: | |
| | |
|
| Deposits | $ | 717,192,200 |
| | $ | 751,296,668 |
|
| FHLB advances | 55,000,000 |
| | 60,000,000 |
|
| Advance payments by borrowers for taxes and insurance | 1,312,283 |
| | 1,054,251 |
|
| Other liabilities | 11,901,786 |
| | 3,277,094 |
|
| Total liabilities | 785,406,269 |
| | 815,628,013 |
|
| Stockholders’ equity: | |
| | |
|
| Common stock, $0.01 par value; 18,261,388 shares issued and outstanding at September 30, 2014 and 22,752,214 shares issued and outstanding at September 30, 2013 | 182,614 |
| | 227,522 |
|
| Preferred stock, $0.01 par value; 50,000,000 shares authorized at September 30, 2014 and September 30, 2013 | — |
| | — |
|
| Additional paid-in capital | 119,586,164 |
| | 171,729,570 |
|
| Unearned compensation – ESOP | (5,984,317 | ) | | (6,480,949 | ) |
| Retained earnings | 111,924,543 |
| | 110,141,286 |
|
| Accumulated other comprehensive loss | (754,135 | ) | | (1,839,593 | ) |
| Total stockholders’ equity | 224,954,869 |
| | 273,777,836 |
|
| | | | |
| Total liabilities and stockholders’ equity | $ | 1,010,361,138 |
| | $ | 1,089,405,849 |
|
__________________________________
| |
| (1) | Financial information as of and for the twelve months ended September 30, 2013 has been derived from audited financial statements. |
Charter Financial Corporation
Condensed Consolidated Statements of Income (unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended September 30, | | Year Ended September 30, |
| | 2014 | | 2013 | | 2014 | | 2013 |
| Interest income: | | | | | | | |
| Loans receivable | $ | 9,439,668 |
| | $ | 8,846,371 |
| | $ | 35,003,936 |
| | $ | 38,815,683 |
|
| Mortgage-backed securities and collateralized mortgage obligations | 818,617 |
| | 909,558 |
| | 3,612,636 |
| | 3,194,733 |
|
| Federal Home Loan Bank stock | 32,017 |
| | 27,795 |
| | 134,795 |
| | 122,893 |
|
| Other investment securities available for sale | 16,022 |
| | 38,862 |
| | 72,336 |
| | 175,150 |
|
| Interest-earning deposits in other financial institutions | 64,229 |
| | 102,747 |
| | 331,045 |
| | 328,010 |
|
| Amortization of FDIC loss share receivable | (1,910,707 | ) | | — |
| | (3,507,017 | ) | | — |
|
| Total interest income | 8,459,846 |
| | 9,925,333 |
| | 35,647,731 |
| | 42,636,469 |
|
| Interest expense: | |
| | |
| | |
| | |
|
| Deposits | 775,176 |
| | 935,204 |
| | 3,255,032 |
| | 4,242,848 |
|
| Borrowings | 602,376 |
| | 726,352 |
| | 2,474,733 |
| | 3,118,271 |
|
| Total interest expense | 1,377,552 |
| | 1,661,556 |
| | 5,729,765 |
| | 7,361,119 |
|
| Net interest income | 7,082,294 |
| | 8,263,777 |
| | 29,917,966 |
| | 35,275,350 |
|
| Provision for loan losses, not covered under FDIC loss sharing agreements | - |
| | 300,000 |
| | 300,000 |
| | 1,400,000 |
|
| Provision for covered loan losses | (126,896 | ) | | (4,877 | ) | | (1,012,560 | ) | | 89,444 |
|
| Net interest income after provision for loan losses | 7,209,190 |
| | 7,968,654 |
| | 30,630,526 |
| | 33,785,906 |
|
| Noninterest income: | |
| | |
| | |
| | |
|
| Service charges on deposit accounts | 1,551,840 |
| | 1,363,754 |
| | 5,815,479 |
| | 5,316,448 |
|
| Bankcard fees | 960,011 |
| | 647,045 |
| | 3,556,754 |
| | 2,437,968 |
|
| Gain on securities available for sale | — |
| | 29,604 |
| | 200,704 |
| | 249,517 |
|
| Bank owned life insurance | 326,779 |
| | 299,530 |
| | 1,252,246 |
| | 993,961 |
|
| Gain on sale of loans and loan servicing release fees | 366,350 |
| | 191,943 |
| | 1,103,586 |
| | 1,334,330 |
|
| Brokerage commissions | 137,776 |
| | 119,950 |
| | 590,255 |
| | 588,493 |
|
| FDIC receivable for loss sharing agreements (impairment) accretion | (235,824 | ) | | (185,683 | ) | | (174,291 | ) | | 33,235 |
|
| Other | 601,348 |
| | 335,963 |
| | 1,932,277 |
| | 698,922 |
|
| Total noninterest income | 3,708,280 |
| | 2,802,106 |
| | 14,277,010 |
| | 11,652,874 |
|
| Noninterest expenses: | |
| | |
| | |
| | |
|
| Salaries and employee benefits | 5,241,096 |
| | 4,955,786 |
| | 19,763,210 |
| | 18,458,664 |
|
| Occupancy | 1,847,491 |
| | 1,978,768 |
| | 7,476,771 |
| | 7,302,944 |
|
| Legal and professional | 371,722 |
| | 647,495 |
| | 1,681,667 |
| | 1,922,817 |
|
| Marketing | 469,915 |
| | 367,141 |
| | 1,445,963 |
| | 1,294,251 |
|
| Federal insurance premiums and other regulatory fees | 190,187 |
| | 233,281 |
| | 891,615 |
| | 589,999 |
|
| Net cost of operations of real estate owned | 59,896 |
| | 39,658 |
| | 434,433 |
| | 1,016,960 |
|
| Furniture and equipment | 177,427 |
| | 213,417 |
| | 727,627 |
| | 828,652 |
|
| Postage, office supplies and printing | 219,353 |
| | 275,197 |
| | 865,853 |
| | 1,082,231 |
|
| Core deposit intangible amortization expense | 79,696 |
| | 111,706 |
| | 380,210 |
| | 476,423 |
|
| Other | 737,691 |
| | 646,131 |
| | 2,542,841 |
| | 3,340,922 |
|
| Total noninterest expenses | 9,394,474 |
| | 9,468,580 |
| | 36,210,190 |
| | 36,313,863 |
|
| Income before income taxes | 1,522,996 |
| | 1,302,180 |
| | 8,697,346 |
| | 9,124,917 |
|
| Income tax expense | 480,919 |
| | 382,408 |
| | 2,742,213 |
| | 2,868,500 |
|
| Net income | $ | 1,042,077 |
| | $ | 919,772 |
| | $ | 5,955,133 |
| | $ | 6,256,417 |
|
| Basic net income per share | $ | 0.06 |
| | $ | 0.04 |
| | $ | 0.29 |
| | $ | 0.30 |
|
| Diluted net income per share | $ | 0.06 |
| | $ | 0.04 |
| | $ | 0.28 |
| | $ | 0.30 |
|
| Weighted average number of common shares outstanding | 17,936,142 |
| | 22,004,910 |
| | 20,591,302 |
| | 20,629,531 |
|
| Weighted average number of common and potential common shares outstanding | 18,446,228 |
| | 22,167,468 |
| | 21,101,388 |
| | 20,792,089 |
|
__________________________________
| |
| (1) | Financial information as of and for the twelve months ended September 30, 2013 has been derived from audited financial statements. |
Charter Financial Corporation
Supplemental Financial Data (unaudited)
in thousands except per share data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter to Date | | | Year to Date |
| | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | | 9/30/2014 | | 9/30/2013 |
| | | | | | | | | | | | | | | |
| Consolidated balance sheet data: | | | | | | | | | | | | | | |
| Total assets | $ | 1,010,361 |
| | $ | 1,040,237 |
| | $ | 1,077,870 |
| | $ | 1,079,911 |
| | $ | 1,089,406 |
| | | $ | 1,010,361 |
| | $ | 1,089,406 |
|
| Cash and cash equivalents | 99,463 |
| | 149,269 |
| | 175,114 |
| | 157,268 |
| | 161,452 |
| | | 99,463 |
| | 161,452 |
|
| Loans receivable, net | 606,367 |
| | 582,403 |
| | 572,040 |
| | 576,567 |
| | 579,854 |
| | | 606,367 |
| | 579,854 |
|
| Non-covered loans receivable, net | 536,732 |
| | 511,176 |
| | 481,907 |
| | 476,467 |
| | 470,863 |
| | | 536,732 |
| | 470,863 |
|
| Covered loans receivable, net | 69,635 |
| | 71,227 |
| | 90,133 |
| | 100,100 |
| | 108,991 |
| | | 69,635 |
| | 108,991 |
|
| Other real estate owned | 7,316 |
| | 9,345 |
| | 10,744 |
| | 11,996 |
| | 15,684 |
| | | 7,316 |
| | 15,684 |
|
| Non-covered other real estate owned | 1,758 |
| | 1,331 |
| | 849 |
| | 1,054 |
| | 1,615 |
| | | 1,758 |
| | 1,615 |
|
| Covered other real estate owned | 5,558 |
| | 8,014 |
| | 9,895 |
| | 10,942 |
| | 14,069 |
| | | 5,558 |
| | 14,069 |
|
| Securities available for sale | 188,743 |
| | 185,040 |
| | 201,578 |
| | 208,064 |
| | 215,118 |
| | | 188,743 |
| | 215,118 |
|
Core deposits (2) | 486,248 |
| | 486,392 |
| | 491,585 |
| | 474,389 |
| | 475,426 |
| | | 486,248 |
| | 475,426 |
|
| Total deposits | 717,192 |
| | 729,609 |
| | 742,064 |
| | 737,654 |
| | 751,297 |
| | | 717,192 |
| | 751,297 |
|
| Borrowings | 55,000 |
| | 55,000 |
| | 55,000 |
| | 60,000 |
| | 60,000 |
| | | 55,000 |
| | 60,000 |
|
| Total stockholders’ equity | 224,955 |
| | 243,414 |
| | 270,265 |
| | 273,164 |
| | 273,778 |
| | | 224,955 |
| | 273,778 |
|
| | | | | | | | | | | | | | | |
| Consolidated earnings summary: | | | | | | | | | | | | | | |
| Interest income | $ | 8,460 |
| | $ | 9,007 |
| | $ | 8,923 |
| | $ | 9,257 |
| | $ | 9,925 |
| | | $ | 35,648 |
| | $ | 42,636 |
|
| Interest expense | 1,378 |
| | 1,386 |
| | 1,430 |
| | 1,536 |
| | 1,661 |
| | | 5,730 |
| | 7,361 |
|
| Net interest income | 7,082 |
| | 7,621 |
| | 7,493 |
| | 7,721 |
| | 8,264 |
| | | 29,918 |
| | 35,275 |
|
| Provision for loan losses on non-covered loans | — |
| | — |
| | — |
| | 300 |
| | 300 |
| | | 300 |
| | 1,400 |
|
| Provision for loan losses on covered loans | (127 | ) | | (834 | ) | | (54 | ) | | 2 |
| | (5 | ) | | | (1,013 | ) | | 89 |
|
| Net interest income after provision for loan losses | 7,209 |
| | 8,455 |
| | 7,547 |
| | 7,419 |
| | 7,969 |
| | | 30,631 |
| | 33,786 |
|
| Noninterest income | 3,708 |
| | 3,236 |
| | 3,217 |
| | 4,116 |
| | 2,802 |
| | | 14,277 |
| | 11,653 |
|
| Noninterest expense | 9,394 |
| | 9,036 |
| | 8,580 |
| | 9,200 |
| | 9,469 |
| | | 36,211 |
| | 36,314 |
|
| Income tax expense | 481 |
| | 870 |
| | 693 |
| | 698 |
| | 382 |
| | | 2,742 |
| | 2,869 |
|
| Net income | $ | 1,042 |
| | $ | 1,785 |
| | $ | 1,491 |
| | $ | 1,637 |
| | $ | 920 |
| | | $ | 5,955 |
| | $ | 6,256 |
|
| | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | |
| Earnings per share – basic | $ | 0.06 |
| | $ | 0.09 |
| | $ | 0.07 |
| | $ | 0.07 |
| | $ | 0.04 |
| | | $ | 0.29 |
| | $ | 0.30 |
|
| Earnings per share – fully diluted | $ | 0.06 |
| | $ | 0.09 |
| | $ | 0.07 |
| | $ | 0.07 |
| | $ | 0.04 |
| | | $ | 0.28 |
| | $ | 0.30 |
|
| Cash dividends per share | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.30 |
| | | $ | 0.20 |
| | $ | 0.35 |
|
| | | | | | | | | | | | | | | |
| Weighted average basic shares | 17,936 |
| | 20,747 |
| | 21,701 |
| | 22,007 |
| | 22,005 |
| | | 20,591 |
| | 20,630 |
|
| Weighted average diluted shares | 18,446 |
| | 21,301 |
| | 22,224 |
| | 22,528 |
| | 22,167 |
| | | 21,101 |
| | 20,792 |
|
| Total shares outstanding | 18,261 |
| | 19,960 |
| | 22,603 |
| | 22,998 |
| | 22,752 |
| | | 18,261 |
| | 22,752 |
|
| | | | | | | | | | | | | | | |
| Book value per share | $ | 12.32 |
| | $ | 12.20 |
| | $ | 11.96 |
| | $ | 11.88 |
| | $ | 12.03 |
| | | $ | 12.32 |
| | $ | 12.03 |
|
| Tangible book value per share | $ | 12.06 |
| | $ | 11.95 |
| | $ | 11.74 |
| | $ | 11.66 |
| | $ | 11.81 |
| | | $ | 12.06 |
| | $ | 11.81 |
|
__________________________________
| |
| (1) | Financial information as of September 30, 2013 has been derived from audited financial statements. |
| |
| (2) | Core deposits include transaction accounts, money market accounts and savings accounts. |
Charter Financial Corporation
Supplemental Information (unaudited)
dollars in thousands
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter to Date | | | Year to Date |
| | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | | 9/30/2014 | | 9/30/2013 |
| | | | | | | | | | | | | | | |
| Not covered by loss share agreements | | | | | | | | | | | | | | |
Loans receivable: (1) | | | | | | | | | | | | | | |
| 1-4 family residential real estate | $ | 152,811 |
| | $ | 139,803 |
| | $ | 135,181 |
| | $ | 133,331 |
| | $ | 124,571 |
| | | $ | 152,811 |
| | $ | 124,571 |
|
| Commercial real estate | 300,556 |
| | 284,591 |
| | 271,156 |
| | 267,818 |
| | 269,609 |
| | | 300,556 |
| | 269,609 |
|
| Commercial | 24,760 |
| | 21,172 |
| | 21,501 |
| | 22,793 |
| | 23,774 |
| | | 24,760 |
| | 23,774 |
|
| Real estate construction | 63,485 |
| | 58,459 |
| | 47,112 |
| | 45,200 |
| | 44,653 |
| | | 63,485 |
| | 44,653 |
|
| Consumer and other | 4,959 |
| | 17,010 |
| | 16,531 |
| | 16,908 |
| | 17,545 |
| | | 4,959 |
| | 17,545 |
|
| Total non-covered loans receivable | $ | 546,571 |
| | $ | 521,035 |
| | $ | 491,481 |
| | $ | 486,050 |
| | $ | 480,152 |
| | | $ | 546,571 |
| | $ | 480,152 |
|
| | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 8,606 |
| | $ | 8,431 |
| | $ | 8,494 |
| | $ | 8,189 |
| | $ | 8,380 |
| | | $ | 8,189 |
| | $ | 8,190 |
|
| Charge-offs | (342 | ) | | (238 | ) | | (93 | ) | | (68 | ) | | (501 | ) | | | (741 | ) | | (1,601 | ) |
| Recoveries | 209 |
| | 13 |
| | 30 |
| | 73 |
| | 10 |
| | | 325 |
| | 200 |
|
| Provision | — |
| | — |
| | — |
| | 300 |
| | 300 |
| | | 300 |
| | 1,400 |
|
Transfer (2) | — |
| | 400 |
| | — |
| | — |
| | — |
| | | 400 |
| | — |
|
| Balance at end of period | $ | 8,473 |
| | $ | 8,606 |
| | $ | 8,431 |
| | $ | 8,494 |
| | $ | 8,189 |
| | | $ | 8,473 |
| | $ | 8,189 |
|
| | | | | | | | | | | | | | | |
Nonperforming assets: (3) | | | | | | | | | | | | | | |
| Nonaccrual loans | $ | 3,508 |
| | $ | 4,243 |
| | $ | 4,743 |
| | $ | 4,975 |
| | $ | 2,874 |
| | | $ | 3,508 |
| | $ | 2,874 |
|
| Loans delinquent 90 days or greater and still accruing | 736 |
| | 238 |
| | — |
| | — |
| | 47 |
| | | 736 |
| | 47 |
|
| Total nonperforming non-covered loans | 4,244 |
| | 4,481 |
| | 4,743 |
| | 4,975 |
| | 2,921 |
| | | 4,244 |
| | 2,921 |
|
| Other real estate owned | 1,758 |
| | 1,331 |
| | 849 |
| | 1,053 |
| | 1,615 |
| | | 1,758 |
| | 1,615 |
|
| Total nonperforming non-covered assets | $ | 6,002 |
| | $ | 5,812 |
| | $ | 5,592 |
| | $ | 6,028 |
| | $ | 4,536 |
| | | $ | 6,002 |
| | $ | 4,536 |
|
| | | | | | | | | | | | | | | |
| Troubled debt restructuring: | | | | | | | | | | | | | | |
| Troubled debt restructurings - accruing | $ | 6,154 |
| | $ | 7,352 |
| | $ | 7,603 |
| | $ | 8,589 |
| | $ | 12,302 |
| | | $ | 6,154 |
| | $ | 12,302 |
|
| Troubled debt restructurings - nonaccrual | 1,674 |
| | 2,094 |
| | 2,094 |
| | 2,261 |
| | 439 |
| | | 1,674 |
| | 439 |
|
| Total troubled debt restructurings | $ | 7,828 |
| | $ | 9,446 |
| | $ | 9,697 |
| | $ | 10,850 |
| | $ | 12,741 |
| | | $ | 7,828 |
| | $ | 12,741 |
|
| | | | | | | | | | | | | | | |
| Covered by loss sharing agreements | | | | | | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | | | | | | |
| Other real estate owned | $ | 5,558 |
| | $ | 8,014 |
| | $ | 9,895 |
| | $ | 10,942 |
| | $ | 14,069 |
| | | $ | 5,558 |
| | $ | 14,069 |
|
Covered loans 90+ days delinquent (4) | 5,315 |
| | 3,156 |
| | 8,825 |
| | 8,661 |
| | 8,574 |
| | | 5,315 |
| | 8,574 |
|
| Total nonperforming covered assets | $ | 10,873 |
| | $ | 11,170 |
| | $ | 18,720 |
| | $ | 19,603 |
| | $ | 22,643 |
| | | $ | 10,873 |
| | $ | 22,643 |
|
__________________________________
| |
| (1) | Includes previously acquired loans in the amount of $8.6 million and $9.1 million at September 30, 2014 and June 30, 2014, respectively, related to the Neighborhood Community Bank non single-family loss sharing agreement with the FDIC that expired in June 2014. |
| |
| (2) | Transfer of allowance related to acquired Neighborhood Community Bank non-single family loans upon expiration of the non-single family loss sharing agreement with the FDIC in June 2014. |
| |
| (3) | Previously acquired loans that are no longer covered under the commercial loss sharing agreement with the FDIC are excluded from this table. Due to the recognition of accretion income established at the time of acquisition, acquired loans that are greater than 90 days delinquent or designated nonaccrual status are regarded as accruing loans for reporting purposes. |
| |
| (4) | Covered loans contractually past due greater than ninety days are reported as accruing loans because of accretable discounts established at the time of acquisition. |
Charter Financial Corporation
Supplemental Information (unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Quarter to Date | | | Year to Date |
| | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | 9/30/2013 | | | 9/30/2014 | | 9/30/2013 |
| | | | | | | | | | | | | | | |
| Return on equity (annualized) | 1.78 | % | | 2.71 | % | | 2.19 | % | | 2.39 | % | | 1.32 | % | | | 2.28 | % | | 2.98 | % |
| Return on assets (annualized) | 0.41 | % | | 0.67 | % | | 0.55 | % | | 0.60 | % | | 0.33 | % | | | 0.56 | % | | 0.58 | % |
| Net interest margin (annualized) | 3.14 | % | | 3.26 | % | | 3.18 | % | | 3.29 | % | | 3.44 | % | | | 3.22 | % | | 3.82 | % |
Net interest margin, excluding the effects of purchase accounting (1) | 2.95 | % | | 2.90 | % | | 2.85 | % | | 2.77 | % | | 2.68 | % | | | 2.87 | % | | 2.82 | % |
| Bank tier 1 leverage ratio | 17.67 | % | | 19.51 | % | | 19.25 | % | | 19.05 | % | | 18.56 | % | | | 17.67 | % | | 18.56 | % |
| Bank total risk-based capital ratio | 27.90 | % | | 32.93 | % | | 34.18 | % | | 33.83 | % | | 33.83 | % | | | 27.90 | % | | 33.83 | % |
| Effective tax rate | 31.58 | % | | 32.77 | % | | 31.73 | % | | 29.90 | % | | 29.37 | % | | | 31.53 | % | | 31.44 | % |
| Yield on loans | 5.05 | % | | 5.44 | % | | 5.41 | % | | 5.55 | % | | 6.14 | % | | | 5.36 | % | | 6.73 | % |
| Cost of deposits | 0.49 | % | | 0.49 | % | | 0.49 | % | | 0.53 | % | | 0.55 | % | | | 0.50 | % | | 0.61 | % |
| | | | | | | | | | | | | | | |
| Ratios of non-covered assets: | | | | | | | | | | | | | | |
| Allowance for loan losses as a % of total loans | 1.55 | % | | 1.65 | % | | 1.71 | % | | 1.74 | % | | 1.70 | % | | | 1.55 | % | | 1.70 | % |
| Allowance for loan losses as a % of nonperforming loans | 199.64 | % | | 192.06 | % | | 177.76 | % | | 170.74 | % | | 280.32 | % | | | 199.64 | % | | 280.32 | % |
| Nonperforming assets as a % of total loans and REO | 1.09 | % | | 1.11 | % | | 1.14 | % | | 1.24 | % | | 0.94 | % | | | 1.09 | % | | 0.94 | % |
| Nonperforming assets as a % of total assets | 0.65 | % | | 0.62 | % | | 0.59 | % | | 0.64 | % | | 0.49 | % | | | 0.65 | % | | 0.49 | % |
| Net charge-offs as a % of average loans (annualized) | 0.10 | % | | 0.18 | % | | 0.05 | % | | — | % | | 0.43 | % | | | 0.08 | % | | 0.32 | % |
__________________________________
| |
| 1) | Net interest income excluding accretion and amortization of loss share loans receivable divided by net interest earning assets excluding loan accretable discounts in the amount of $6.1 million, $5.5 million, $3.5 million, $4.4 million, and $5.9 million, for the quarters ended September 30, 2014, June 30, 2014, March 31, 2014, December 31, 2013 and September 30, 2013, respectively, and $4.9 million and $9.2 million for the years ended September 30, 2014 and September 30, 2013, respectively. |
Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
|
| | | | | | | | | | | | | | | | | | | | | |
| | Quarter to Date |
| | 9/30/2014 | | 9/30/2013 |
| | Average Balance | | Interest | | Average Yield/ Cost (10) | | Average Balance | | Interest | | Average Yield/ Cost (10) |
| Assets: | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | |
| Interest-earning deposits in other financial institutions | $ | 115,090 |
| | $ | 64 |
| | 0.22 | % | | $ | 155,631 |
| | $ | 103 |
| | 0.26 | % |
| FHLB common stock and other equity securities | 3,443 |
| | 32 |
| | 3.72 |
| | 4,317 |
| | 28 |
| | 2.58 |
|
| Mortgage-backed securities and collateralized mortgage obligations available for sale | 173,113 |
| | 819 |
| | 1.89 |
| | 199,000 |
| | 909 |
| | 1.83 |
|
Other investment securities available for sale (1) | 15,744 |
| | 16 |
| | 0.41 |
| | 25,666 |
| | 39 |
| | 0.61 |
|
Loans receivable (1)(2)(3)(4) | 595,959 |
| | 7,161 |
| | 4.81 |
| | 576,486 |
| | 7,053 |
| | 4.89 |
|
Accretion and amortization of loss share loans receivable (5) | | | 368 |
| | 0.24 |
| | | | 1,793 |
| | 1.23 |
|
| Total interest-earning assets | 903,349 |
| | 8,460 |
| | 3.75 |
| | 961,100 |
| | 9,925 |
| | 4.13 |
|
| Total noninterest-earning assets | 118,774 |
| | | | |
| | 142,279 |
| | | | |
|
| Total assets | $ | 1,022,123 |
| | | | |
| | $ | 1,103,379 |
| | | | |
|
| Liabilities and Equity: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing liabilities: | |
| | |
| | |
| | |
| | |
| | |
|
| NOW accounts | $ | 173,813 |
| | $ | 42 |
| | 0.10 | % | | $ | 166,575 |
| | $ | 48 |
| | 0.12 | % |
| Rewards checking | 45,798 |
| | 27 |
| | 0.23 |
| | 49,731 |
| | 32 |
| | 0.26 |
|
| Savings accounts | 48,734 |
| | 2 |
| | 0.02 |
| | 48,986 |
| | 5 |
| | 0.04 |
|
| Money market deposit accounts | 123,641 |
| | 70 |
| | 0.23 |
| | 128,365 |
| | 68 |
| | 0.21 |
|
| Certificate of deposit accounts | 238,705 |
| | 635 |
| | 1.06 |
| | 280,887 |
| | 782 |
| | 1.11 |
|
| Total interest-bearing deposits | 630,691 |
| | 776 |
| | 0.49 |
| | 674,544 |
| | 935 |
| | 0.55 |
|
| Borrowed funds | 55,000 |
| | 602 |
| | 4.38 |
| | 67,663 |
| | 726 |
| | 4.29 |
|
| Total interest-bearing liabilities | 685,691 |
| | 1,378 |
| | 0.80 |
| | 742,207 |
| | 1,661 |
| | 0.90 |
|
| Noninterest-bearing deposits | 87,829 |
| | | | |
| | 75,806 |
| | | | |
|
| Other noninterest-bearing liabilities | 14,024 |
| | | | |
| | 7,575 |
| | | | |
|
| Total noninterest-bearing liabilities | 101,853 |
| | | | |
| | 83,381 |
| | | | |
|
| Total liabilities | 787,544 |
| | | | |
| | 825,588 |
| | | | |
|
| Total stockholders' equity | 234,579 |
| | | | |
| | 277,791 |
| | | | |
|
| Total liabilities and stockholders' equity | $ | 1,022,123 |
| | | | |
| | $ | 1,103,379 |
| | | | |
|
| Net interest income | |
| | $ | 7,082 |
| | |
| | |
| | $ | 8,264 |
| | |
|
Net interest earning assets (6) | |
| | $ | 217,658 |
| | |
| | |
| | $ | 218,893 |
| | |
|
Net interest rate spread (7) | |
| | |
| | 2.95 | % | | |
| | |
| | 3.23 | % |
Net interest margin (8) | |
| | |
| | 3.14 | % | | |
| | |
| | 3.44 | % |
Net interest margin, excluding the effects of purchase accounting (9) | | | | | 2.95 | % | | | | | | 2.68 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities | | | | | 131.74 | % | | | | | | 129.49 | % |
__________________________________
| |
| (1) | Tax exempt or tax-advantaged securities and loans are shown at their contractual yields and are not shown at a tax equivalent yield. |
| |
| (2) | Includes net loan fees deferred and accreted pursuant to applicable accounting requirements. |
| |
| (3) | Interest income on loans is interest income as recorded in the income statement and, therefore, does not include interest income on nonaccrual loans. |
| |
| (4) | Interest income on loans excludes discount accretion and amortization of the indemnification asset. |
| |
| (5) | Accretion of accretable purchase discount on loans acquired in FDIC-assisted acquisitions and amortization of the overstatement of FDIC indemnification asset. |
| |
| (6) | Net interest-earning assets represent total average interest-earning assets less total average interest-bearing liabilities. |
| |
| (7) | Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
| |
| (8) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
| |
| (9) | Net interest income excluding accretion and amortization of loss share loans receivable divided by net interest earning assets excluding loan accretable discounts in the amount of $6.1 million and $5.9 million for the quarters ended September 30, 2014 and September 30, 2013, respectively. |
Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
|
| | | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | 9/30/2014 | | 9/30/2013 |
| | Average
Balance | | Interest | | Average
Yield/
Cost | | Average
Balance | | Interest | | Average
Yield/
Cost |
| Assets: | | | | | | | | | | | |
| Interest-earning assets: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-earning deposits in other financial institutions | $ | 138,859 |
| | $ | 331 |
| | 0.24 | % | | $ | 139,922 |
| | $ | 328 |
| | 0.23 | % |
| FHLB common stock and other equity securities | 3,671 |
| | 135 |
| | 3.67 |
| | 4,802 |
| | 123 |
| | 2.56 |
|
| Mortgage-backed securities and collateralized mortgage obligations available for sale | 181,836 |
| | 3,613 |
| | 1.99 |
| | 176,801 |
| | 3,195 |
| | 1.81 |
|
Other investment securities available for sale (1) | 18,273 |
| | 72 |
| | 0.40 |
| | 25,274 |
| | 175 |
| | 0.69 |
|
Loans receivable (1)(2)(3)(4) | 587,486 |
| | 28,410 |
| | 4.84 |
| | 577,077 |
| | 29,892 |
| | 5.18 |
|
Accretion and amortization of loss share loans receivable (5) | | | 3,087 |
| | 0.52 |
| | | | 8,923 |
| | 1.52 |
|
| Total interest-earning assets | 930,125 |
| | 35,648 |
| | 3.83 |
| | 923,876 |
| | 42,636 |
| | 4.61 |
|
| Total noninterest-earning assets | 130,908 |
| | | | |
| | 150,891 |
| | | | |
|
| Total assets | $ | 1,061,033 |
| | | | |
| | $ | 1,074,767 |
| | | | |
|
| Liabilities and Equity: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing liabilities: | |
| | |
| | |
| | |
| | |
| | |
|
| NOW accounts | $ | 175,265 |
| | $ | 190 |
| | 0.11 | % | | $ | 157,579 |
| | $ | 203 |
| | 0.13 | % |
| Rewards checking | 47,701 |
| | 114 |
| | 0.24 |
| | 51,454 |
| | 178 |
| | 0.35 |
|
| Savings accounts | 48,367 |
| | 10 |
| | 0.02 |
| | 49,443 |
| | 23 |
| | 0.05 |
|
| Money market deposit accounts | 126,578 |
| | 281 |
| | 0.22 |
| | 131,890 |
| | 313 |
| | 0.24 |
|
| Certificate of deposit accounts | 252,374 |
| | 2,660 |
| | 1.05 |
| | 308,616 |
| | 3,526 |
| | 1.14 |
|
| Total interest-bearing deposits | 650,285 |
| | 3,255 |
| | 0.50 |
| | 698,982 |
| | 4,243 |
| | 0.61 |
|
| Borrowed funds | 57,211 |
| | 2,475 |
| | 4.33 |
| | 74,211 |
| | 3,118 |
| | 4.20 |
|
| Total interest-bearing liabilities | 707,496 |
| | 5,730 |
| | 0.81 |
| | 773,193 |
| | 7,361 |
| | 0.95 |
|
| Noninterest-bearing deposits | 80,157 |
| | | | | | 84,939 |
| | | | |
| Other noninterest-bearing liabilities | 12,104 |
| | | | | | 6,982 |
| | | | |
| Total noninterest-bearing liabilities | 92,261 |
| | | | | | 91,921 |
| | | | |
| Total liabilities | 799,757 |
| | | | | | 865,114 |
| | | | |
| Total stockholders' equity | 261,276 |
| | | | | | 209,653 |
| | | | |
| Total liabilities and stockholders' equity | $ | 1,061,033 |
| | | | | | $ | 1,074,767 |
| | | | |
| Net interest income | |
| | $ | 29,918 |
| | |
| | |
| | $ | 35,275 |
| | |
|
Net interest earning assets (6) | |
| | $ | 222,629 |
| | |
| | |
| | $ | 150,683 |
| | |
|
Net interest rate spread (7) | |
| | |
| | 3.02 | % | | |
| | |
| | 3.66 | % |
Net interest margin (8) | |
| | |
| | 3.22 | % | | |
| | |
| | 3.82 | % |
Net interest margin, excluding the effects of purchase accounting (9) | | | | | 2.87 | % | | | | | | 2.82 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities | |
| | |
| | 131.47 | % | | |
| | |
| | 119.49 | % |
__________________________________
| |
| (1) | Tax exempt or tax-advantaged securities and loans are shown at their contractual yields and are not shown at a tax equivalent yield. |
| |
| (2) | Includes net loan fees deferred and accreted pursuant to applicable accounting requirements. |
| |
| (3) | Interest income on loans is interest income as recorded in the income statement and, therefore, does not include interest income on nonaccrual loans. |
| |
| (4) | Interest income on loans excludes discount accretion and amortization of the indemnification asset. |
| |
| (5) | Accretion of accretable purchase discount on loans acquired in FDIC-assisted acquisitions and amortization of the overstatement of FDIC indemnification asset. |
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| (6) | Net interest-earning assets represent total average interest-earning assets less total average interest-bearing liabilities. |
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| (7) | Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
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| (8) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
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| (9) | Net interest income excluding accretion and amortization of loss share loans receivable divided by net interest earning assets excluding loan accretable discounts in the amount of $4.9 million and $9.2 million for the years ended September 30, 2014 and September 30, 2013, respectively. |
