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 FIRST QUARTER FISCAL
2015 EARNINGS OF $1.7 MILLION
•Basic and diluted EPS of $0.10 for the quarter
•Net non-covered organic loan growth of 16.0% over prior year
•Total risk-based capital ratio for the bank of 26.5% at December 31, 2014
•Tangible book value per share of $12.29 at December 31, 2014, up $0.63 year over year
•Nonperforming non-covered assets at 0.48% of total non-covered assets at December 31, 2014
•Repurchased 1.3 million shares for $14.2 million during the quarter
West Point, Georgia, January 29, 2015 — Charter Financial Corporation (the “Company”) (NASDAQ: CHFN) today reported net income of $1.7 million, or $0.10 per basic and diluted share, for the quarter ended December 31, 2014, compared with $1.6 million, or $0.07 per basic and diluted share, for the quarter ended December 31, 2013. The increase in net income was primarily attributable to lower noninterest expense and reduced provision for loan losses due to improved credit quality, partially offset by lower purchase discount accretion, net of amortization, of $520,000 for the quarter ended December 31, 2014. Earnings per share for the quarter ended December 31, 2014 also benefited from a lower weighted average number of common shares outstanding as a result of the share repurchases made since December 2013.
Quarterly Operating Results
The improvement in reported quarterly earnings for the first quarter of fiscal 2015 compared with the first quarter of fiscal 2014 resulted primarily from the following items:
| |
| • | Deposit expense decreased by $152,000, or 17.2%. |
| |
| • | Borrowing expense decreased $48,000, or 7.4%. |
| |
| • | The cost of deposits decreased to 48 basis points for the quarter ended December 31, 2014, compared to 53 basis points for the quarter ended December 31, 2013. |
| |
| • | Net interest margin excluding accretion and amortization of loss share receivable was 3.14% for the quarter ended December 31, 2014 compared with 2.77% for the same quarter of fiscal 2014. |
| |
| • | No provision required for non-covered loans compared to $300,000 for the same quarter of fiscal 2014. |
| |
| • | Noninterest income, excluding a $1.1 million receipt due to a one time true-up of a contract in December 2013, increased by $570,000 |
| |
| • | Deposit and bankcard fee income increased by a combined $274,000. |
| |
| • | Gain on sale of loans and loan servicing release fees increased by $195,000. |
| |
| • | Legal and professional fees decreased by $313,000. |
| |
| • | Net cost of operations of real estate owned decreased by $346,000. |
The improvement was partially mitigated by the following items:
| |
| • | Net decrease to total interest income of $520,000 due to the impact of declining net purchase discount accretion and amortization. |
| |
| • | The average yield on loans was 5.14% for the quarter ended December 31, 2014 compared to 5.55% for the quarter ended December 31, 2013. |
| |
| • | Salaries and employee benefits expense increased by $313,000. |
Chairman and CEO Robert L. Johnson said, “Core earnings continued to improve with $1.7 million in net income for the quarter despite $520,000 less of net discount accretion and amortization than the prior year quarter. We look forward to progressive revenue gains from growing the loan portfolio and non-interest income.”
Financial Condition
The Company's total assets were $979.8 million at December 31, 2014, a decrease of $30.6 million from September 30, 2014, 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 $24.0 million, or 4.5%, to $560.7 million at December 31, 2014, from $536.7 million at September 30, 2014. At December 31, 2014, $67.0 million of net loans receivable were covered by FDIC loss sharing, down from $69.6 million at September 30, 2014, due to the continued progress through the resolution process on loss share assets as well as the expired loss share agreement.
Mr. Johnson continued, “We have been through an extended period of slow economic growth in our markets but signs of expansion are now evident in most areas. For the seventh straight quarter we have seen growth in loans, net of loans acquired from failed banks that are covered by FDIC loss share agreements. Our net (organic) loan portfolio grew by $24.5 million, or 4.6%, during the quarter ended December 31, 2014, and by $76.5 million, or 16.0% year over year. Continued loan portfolio growth is clearly important to realizing increased profitability through higher operating and capital leverage.”
Total deposits were $701.5 million at December 31, 2014, compared with $717.2 million at September 30, 2014 due primarily to a $12.8 million decrease in time deposits. Core deposits decreased from $486.2 million at September 30, 2014, to $483.3 million at December 31, 2014, due primarily to a decrease in transaction accounts.
Total stockholders' equity decreased to $213.2 million at December 31, 2014, compared to $225.0 million at September 30, 2014, due predominantly to $14.2 million of share repurchases during the first quarter of fiscal 2015.
Net Interest Income and Net Interest Margin
Net interest income decreased to $7.6 million for the quarter ended December 31, 2014, compared with $7.7 million for the quarter ended December 31, 2013. Interest income decreased by $289,000 due to lower average yields on loans and a decline in net discount accretion and amortization on acquired covered loans while interest expense decreased by $201,000 quarter over quarter 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, increased to 3.14% for the quarter ended December 31, 2014, compared with 2.77% for the quarter ended December 31, 2013. Net interest margin, including the impact of loss share accounting, increased to 3.47% for the quarter ended December 31, 2014, compared with 3.29% for the quarter ended December 31, 2013.
Provision for Loan Losses
The Company recorded no provision for loan losses on non-covered loans for the quarter ended December 31, 2014 due to an overall improvement in the non-covered loan portfolio compared to a provision of $300,000 for the same quarter in 2013. A provision of $4,000 was recorded on covered loans for the quarter ended December 31, 2014, compared to a provision of $2,000 for the same quarter in 2013.
Accounting for FDIC-Assisted Acquisitions
Mr. Johnson added, “We are in the stretch run of our non-single family loan loss sharing agreements with the FDIC covering three banks acquired with FDIC assistance. The first five year agreement ended last June, the second will end March 2015 and the last one has just 20 months left. The FDIC indemnification asset is down to $8.9 million indicating we are closing in on resolution of the acquired problem assets. We revise and evaluate the cash flows of the purchased loans to adjust the indemnification asset, discount accretion and amortization of the indemnification asset.”
Under purchase accounting rules, the company currently projects remaining discount accretion of $5.7 million and $1.7 million in amortization netting to approximately $4.0 million of future pre-tax income impact.
Noninterest Income and Expense
The gain on sale of loans, bankcard fees and other deposit fees improved while overall noninterest income decreased from the prior year quarter due to the inclusion in the prior year quarter of a one time true-up receipt from the completion and renegotiation of a processing contract in the quarter ended December 31, 2013 in the amount of $1.1 million.
Noninterest expense for the quarter ended December 31, 2014 decreased $464,000 compared with the same period in fiscal 2014, primarily attributable to declines in net cost of real estate owned and legal and professional fees of $346,000 and $313,000, respectively. These decreases were partially offset by an increase in salaries and employee benefits.
Asset Quality
Asset quality remained strong with nonperforming assets not covered by loss sharing agreements decreasing to 0.48% of total non-covered assets and the allowance for loan losses at 1.49% of total non-covered loans and 254.47% of nonperforming non-covered loans at December 31, 2014. The Company had net loan recoveries of $21,000 on non-covered loans for the quarter ended December 31, 2014, compared to net loan recoveries of $5,000 on non-covered loans for the same period in fiscal 2014.
Capital Management
During the quarter ended December 31, 2014, the Company repurchased 1.3 million shares for approximately $14.2 million, or $10.95 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 at a discount to tangible book value. Additionally, through our current repurchase program announced in September 2014 for up to 1.8 million shares, we repurchased 1.3 million shares during the first quarter of fiscal 2015. Collectively, the 6.2 million shares repurchased, or approximately 27% of our common stock, were purchased at a combined discount to tangible book value of $8.1 million.”
Mr. Johnson concluded, “We believe that our usage of cash to repurchase shares at a discount to tangible book value, along with our quarterly cash dividend, provides excellent stockholder value. In the coming quarters, we intend to organically grow our loan portfolio, improve profitability through the reduction of expenses, improve noninterest income, increase margins and explore the opportunity for accretive acquisitions.”
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, statements regarding future growth, profitability, expense reduction, improvements in income and margins, and 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)
|
| | | | | | | |
| | December 31, 2014 | | September 30, 2014 |
| Assets |
| Cash and amounts due from depository institutions | $ | 11,132,323 |
| | $ | 10,996,959 |
|
| Interest-earning deposits in other financial institutions | 37,599,236 |
| | 88,465,994 |
|
| Cash and cash equivalents | 48,731,559 |
| | 99,462,953 |
|
| Loans held for sale, fair value of $2,247,435 and $2,090,469 | 2,201,343 |
| | 2,054,722 |
|
| Investment securities available for sale | 191,995,254 |
| | 188,743,273 |
|
| Federal Home Loan Bank stock | 3,442,900 |
| | 3,442,900 |
|
| Loans receivable: | |
| | |
|
| Not covered under FDIC loss sharing agreements | 570,662,644 |
| | 546,570,720 |
|
| Covered under FDIC loss sharing agreements | 68,028,575 |
| | 70,631,743 |
|
| Allowance for loan losses (covered loans) | (1,012,679 | ) | | (997,524 | ) |
| Unamortized loan origination fees, net (non-covered loans) | (1,444,721 | ) | | (1,364,853 | ) |
| Allowance for loan losses (non-covered loans) | (8,494,197 | ) | | (8,473,373 | ) |
| Loans receivable, net | 627,739,622 |
| | 606,366,713 |
|
| Other real estate owned: | |
| | |
|
| Not covered under FDIC loss sharing agreements | 953,988 |
| | 1,757,864 |
|
| Covered under FDIC loss sharing agreements | 4,554,134 |
| | 5,557,927 |
|
| Accrued interest and dividends receivable | 2,498,125 |
| | 2,459,347 |
|
| Premises and equipment, net | 20,316,105 |
| | 20,571,541 |
|
| Goodwill | 4,325,282 |
| | 4,325,282 |
|
| Other intangible assets, net of amortization | 452,548 |
| | 423,676 |
|
| Cash surrender value of life insurance | 47,502,540 |
| | 47,178,128 |
|
| FDIC receivable for loss sharing agreements | 8,924,035 |
| | 10,531,809 |
|
| Deferred income taxes | 7,854,292 |
| | 8,231,002 |
|
| Other assets | 8,285,345 |
| | 9,254,001 |
|
| Total assets | $ | 979,777,072 |
| | $ | 1,010,361,138 |
|
| | | | |
| Liabilities and Stockholders’ Equity |
| Liabilities: | |
| | |
|
| Deposits | $ | 701,475,073 |
| | $ | 717,192,200 |
|
| FHLB advances | 55,000,000 |
| | 55,000,000 |
|
| Advance payments by borrowers for taxes and insurance | 644,078 |
| | 1,312,283 |
|
| Other liabilities | 9,472,068 |
| | 11,901,786 |
|
| Total liabilities | 766,591,219 |
| | 785,406,269 |
|
| Stockholders’ equity: | |
| | |
|
| Common stock, $0.01 par value; 16,962,609 shares issued and outstanding at December 31, 2014 and 18,261,388 shares issued and outstanding at September 30, 2014 | 169,626 |
| | 182,614 |
|
| Preferred stock, $0.01 par value; 50,000,000 shares authorized at December 31, 2014 and September 30, 2014 | — |
| | — |
|
| Additional paid-in capital | 105,789,844 |
| | 119,586,164 |
|
| Unearned compensation – ESOP | (5,551,193 | ) | | (5,984,317 | ) |
| Retained earnings | 112,800,450 |
| | 111,924,543 |
|
| Accumulated other comprehensive loss | (22,874 | ) | | (754,135 | ) |
| Total stockholders’ equity | 213,185,853 |
| | 224,954,869 |
|
| | | | |
| Total liabilities and stockholders’ equity | $ | 979,777,072 |
| | $ | 1,010,361,138 |
|
__________________________________
| |
| (1) | Financial information as of September 30, 2014 has been derived from audited financial statements. |
Charter Financial Corporation
Condensed Consolidated Statements of Income (unaudited)
|
| | | | | | | |
| | Three Months Ended
December 31, |
| | 2014 | | 2013 |
| Interest income: | | | |
| Loans receivable | $ | 8,904,633 |
| | $ | 8,154,690 |
|
| Mortgage-backed securities and collateralized mortgage obligations | 830,677 |
| | 968,713 |
|
| Federal Home Loan Bank stock | 36,708 |
| | 30,032 |
|
| Other investment securities available for sale | 44,853 |
| | 18,807 |
|
| Interest-earning deposits in other financial institutions | 41,036 |
| | 85,297 |
|
| Amortization of FDIC loss share receivable | (888,911 | ) | | — |
|
| Total interest income | 8,968,996 |
| | 9,257,539 |
|
| Interest expense: | |
| | |
|
| Deposits | 732,927 |
| | 885,425 |
|
| Borrowings | 602,746 |
| | 650,868 |
|
| Total interest expense | 1,335,673 |
| | 1,536,293 |
|
| Net interest income | 7,633,323 |
| | 7,721,246 |
|
| Provision for loan losses, not covered under FDIC loss sharing agreements | — |
| | 300,000 |
|
| Provision for covered loan losses | 4,000 |
| | 2,116 |
|
| Net interest income after provision for loan losses | 7,629,323 |
| | 7,419,130 |
|
| Noninterest income: | |
| | |
|
| Service charges on deposit accounts | 1,581,978 |
| | 1,428,315 |
|
| Bankcard fees | 947,623 |
| | 827,211 |
|
| Gain on investment securities available for sale | 684 |
| | — |
|
| Bank owned life insurance | 324,413 |
| | 307,701 |
|
| Gain on sale of loans and loan servicing release fees | 367,002 |
| | 172,385 |
|
| Brokerage commissions | 154,304 |
| | 144,525 |
|
| FDIC receivable for loss sharing agreements accretion (impairment) | 47,461 |
| | (89,742 | ) |
| Other | 142,502 |
| | 1,326,019 |
|
| Total noninterest income | 3,565,967 |
| | 4,116,414 |
|
| Noninterest expenses: | |
| | |
|
| Salaries and employee benefits | 5,014,267 |
| | 4,700,952 |
|
| Occupancy | 1,875,663 |
| | 1,892,415 |
|
| Legal and professional | 240,626 |
| | 553,947 |
|
| Marketing | 265,232 |
| | 299,740 |
|
| Federal insurance premiums and other regulatory fees | 195,590 |
| | 251,350 |
|
| Net (benefit) cost of operations of real estate owned | (57,320 | ) | | 288,802 |
|
| Furniture and equipment | 150,535 |
| | 166,022 |
|
| Postage, office supplies and printing | 240,607 |
| | 225,848 |
|
| Core deposit intangible amortization expense | 74,308 |
| | 106,318 |
|
| Other | 736,281 |
| | 714,682 |
|
| Total noninterest expenses | 8,735,789 |
| | 9,200,076 |
|
| Income before income taxes | 2,459,501 |
| | 2,335,468 |
|
| Income tax expense | 785,998 |
| | 698,400 |
|
| Net income | $ | 1,673,503 |
| | $ | 1,637,068 |
|
| Basic net income per share | $ | 0.10 |
| | $ | 0.07 |
|
| Diluted net income per share | $ | 0.10 |
| | $ | 0.07 |
|
| Weighted average number of common shares outstanding | 16,175,485 |
| | 22,006,657 |
|
| Weighted average number of common and potential common shares outstanding | 16,709,543 |
| | 22,527,837 |
|
Charter Financial Corporation
Supplemental Financial Data (unaudited)
in thousands except per share data
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter to Date | | | Year to Date |
| | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | | 12/31/2014 | | 12/31/2013 |
| | | | | | | | | | | | | | | |
| Consolidated balance sheet data: | | | | | | | | | | | | | | |
| Total assets | $ | 979,777 |
| | $ | 1,010,361 |
| | $ | 1,040,237 |
| | $ | 1,077,870 |
| | $ | 1,079,911 |
| | | $ | 979,777 |
| | $ | 1,079,911 |
|
| Cash and cash equivalents | 48,732 |
| | 99,463 |
| | 149,269 |
| | 175,114 |
| | 157,268 |
| | | 48,732 |
| | 157,268 |
|
| Loans receivable, net | 627,740 |
| | 606,367 |
| | 582,403 |
| | 572,040 |
| | 576,567 |
| | | 627,740 |
| | 576,567 |
|
| Non-covered loans receivable, net | 560,724 |
| | 536,732 |
| | 511,176 |
| | 481,907 |
| | 476,467 |
| | | 560,724 |
| | 476,467 |
|
| Covered loans receivable, net | 67,016 |
| | 69,635 |
| | 71,227 |
| | 90,133 |
| | 100,100 |
| | | 67,016 |
| | 100,100 |
|
| Other real estate owned | 5,508 |
| | 7,316 |
| | 9,345 |
| | 10,744 |
| | 11,996 |
| | | 5,508 |
| | 11,996 |
|
| Non-covered other real estate owned | 954 |
| | 1,758 |
| | 1,331 |
| | 849 |
| | 1,054 |
| | | 954 |
| | 1,054 |
|
| Covered other real estate owned | 4,554 |
| | 5,558 |
| | 8,014 |
| | 9,895 |
| | 10,942 |
| | | 4,554 |
| | 10,942 |
|
| Securities available for sale | 191,995 |
| | 188,743 |
| | 185,040 |
| | 201,578 |
| | 208,064 |
| | | 191,995 |
| | 208,064 |
|
Core deposits (2) | 483,288 |
| | 486,248 |
| | 486,392 |
| | 491,585 |
| | 474,389 |
| | | 483,288 |
| | 474,389 |
|
| Total deposits | 701,475 |
| | 717,192 |
| | 729,609 |
| | 742,064 |
| | 737,654 |
| | | 701,475 |
| | 737,654 |
|
| Borrowings | 55,000 |
| | 55,000 |
| | 55,000 |
| | 55,000 |
| | 60,000 |
| | | 55,000 |
| | 60,000 |
|
| Total stockholders’ equity | 213,186 |
| | 224,955 |
| | 243,414 |
| | 270,265 |
| | 273,164 |
| | | 213,186 |
| | 273,164 |
|
| | | | | | | | | | | | | | | |
| Consolidated earnings summary: | | | | | | | | | | | | | | |
| Interest income | $ | 8,969 |
| | $ | 8,460 |
| | $ | 9,007 |
| | $ | 8,923 |
| | $ | 9,257 |
| | | $ | 8,969 |
| | $ | 9,257 |
|
| Interest expense | 1,336 |
| | 1,378 |
| | 1,386 |
| | 1,430 |
| | 1,536 |
| | | 1,336 |
| | 1,536 |
|
| Net interest income | 7,633 |
| | 7,082 |
| | 7,621 |
| | 7,493 |
| | 7,721 |
| | | 7,633 |
| | 7,721 |
|
| Provision for loan losses on non-covered loans | — |
| | — |
| | — |
| | — |
| | 300 |
| | | — |
| | 300 |
|
| Provision for loan losses on covered loans | 4 |
| | (127 | ) | | (834 | ) | | (54 | ) | | 2 |
| | | 4 |
| | 2 |
|
| Net interest income after provision for loan losses | 7,629 |
| | 7,209 |
| | 8,455 |
| | 7,547 |
| | 7,419 |
| | | 7,629 |
| | 7,419 |
|
| Noninterest income | 3,566 |
| | 3,708 |
| | 3,236 |
| | 3,217 |
| | 4,116 |
| | | 3,566 |
| | 4,116 |
|
| Noninterest expense | 8,735 |
| | 9,394 |
| | 9,036 |
| | 8,580 |
| | 9,200 |
| | | 8,735 |
| | 9,200 |
|
| Income tax expense | 786 |
| | 481 |
| | 870 |
| | 693 |
| | 698 |
| | | 786 |
| | 698 |
|
| Net income | $ | 1,674 |
| | $ | 1,042 |
| | $ | 1,785 |
| | $ | 1,491 |
| | $ | 1,637 |
| | | $ | 1,674 |
| | $ | 1,637 |
|
| | | | | | | | | | | | | | | |
| Per share data: | | | | | | | | | | | | | | |
| Earnings per share – basic | $ | 0.10 |
| | $ | 0.06 |
| | $ | 0.09 |
| | $ | 0.07 |
| | $ | 0.07 |
| | | $ | 0.10 |
| | $ | 0.07 |
|
| Earnings per share – fully diluted | $ | 0.10 |
| | $ | 0.06 |
| | $ | 0.09 |
| | $ | 0.07 |
| | $ | 0.07 |
| | | $ | 0.10 |
| | $ | 0.07 |
|
| Cash dividends per share | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.05 |
| | $ | 0.05 |
| | | $ | 0.05 |
| | $ | 0.05 |
|
| | | | | | | | | | | | | | | |
| Weighted average basic shares | 16,175 |
| | 17,936 |
| | 20,747 |
| | 21,701 |
| | 22,007 |
| | | 16,175 |
| | 22,007 |
|
| Weighted average diluted shares | 16,710 |
| | 18,446 |
| | 21,301 |
| | 22,224 |
| | 22,528 |
| | | 16,710 |
| | 22,528 |
|
| Total shares outstanding | 16,963 |
| | 18,261 |
| | 19,960 |
| | 22,603 |
| | 22,998 |
| | | 16,963 |
| | 22,998 |
|
| | | | | | | | | | | | | | | |
| Book value per share | $ | 12.57 |
| | $ | 12.32 |
| | $ | 12.20 |
| | $ | 11.96 |
| | $ | 11.88 |
| | | $ | 12.57 |
| | $ | 11.88 |
|
| Tangible book value per share | $ | 12.29 |
| | $ | 12.06 |
| | $ | 11.95 |
| | $ | 11.74 |
| | $ | 11.66 |
| | | $ | 12.29 |
| | $ | 11.66 |
|
__________________________________
| |
| (1) | Financial information as of September 30, 2014 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 |
| | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | | 12/31/2014 | | 12/31/2013 |
| | | | | | | | | | | | | | | |
| Not covered by loss share agreements | | | | | | | | | | | | | | |
Loans receivable: (1) | | | | | | | | | | | | | | |
| 1-4 family residential real estate | $ | 157,340 |
| | $ | 152,811 |
| | $ | 139,803 |
| | $ | 135,181 |
| | $ | 133,331 |
| | | $ | 157,340 |
| | $ | 133,331 |
|
| Commercial real estate | 313,658 |
| | 300,556 |
| | 284,591 |
| | 271,156 |
| | 267,818 |
| | | 313,658 |
| | 267,818 |
|
| Commercial | 27,844 |
| | 24,760 |
| | 21,172 |
| | 21,501 |
| | 22,793 |
| | | 27,844 |
| | 22,793 |
|
| Real estate construction | 67,196 |
| | 63,485 |
| | 58,459 |
| | 47,112 |
| | 45,200 |
| | | 67,196 |
| | 45,200 |
|
| Consumer and other | 4,625 |
| | 4,959 |
| | 17,010 |
| | 16,531 |
| | 16,908 |
| | | 4,625 |
| | 16,908 |
|
| Total non-covered loans receivable | $ | 570,663 |
| | $ | 546,571 |
| | $ | 521,035 |
| | $ | 491,481 |
| | $ | 486,050 |
| | | $ | 570,663 |
| | $ | 486,050 |
|
| | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | |
| Balance at beginning of period | $ | 8,473 |
| | $ | 8,606 |
| | $ | 8,431 |
| | $ | 8,494 |
| | $ | 8,189 |
| | | $ | 8,473 |
| | $ | 8,189 |
|
| Charge-offs | (88 | ) | | (342 | ) | | (238 | ) | | (93 | ) | | (68 | ) | | | (88 | ) | | (68 | ) |
| Recoveries | 109 |
| | 209 |
| | 13 |
| | 30 |
| | 73 |
| | | 109 |
| | 73 |
|
| Provision | — |
| | — |
| | — |
| | — |
| | 300 |
| | | — |
| | 300 |
|
Transfer (2) | — |
| | — |
| | 400 |
| | — |
| | — |
| | | — |
| | — |
|
| Balance at end of period | $ | 8,494 |
| | $ | 8,473 |
| | $ | 8,606 |
| | $ | 8,431 |
| | $ | 8,494 |
| | | $ | 8,494 |
| | $ | 8,494 |
|
| | | | | | | | | | | | | | | |
Nonperforming assets: (3) | | | | | | | | | | | | | | |
| Nonaccrual loans | $ | 3,274 |
| | $ | 3,508 |
| | $ | 4,243 |
| | $ | 4,743 |
| | $ | 4,975 |
| | | $ | 3,274 |
| | $ | 4,975 |
|
| Loans delinquent 90 days or greater and still accruing | 64 |
| | 736 |
| | 238 |
| | — |
| | — |
| | | 64 |
| | — |
|
| Total nonperforming non-covered loans | 3,338 |
| | 4,244 |
| | 4,481 |
| | 4,743 |
| | 4,975 |
| | | 3,338 |
| | 4,975 |
|
| Other real estate owned | 954 |
| | 1,758 |
| | 1,331 |
| | 849 |
| | 1,053 |
| | | 954 |
| | 1,053 |
|
| Total nonperforming non-covered assets | $ | 4,292 |
| | $ | 6,002 |
| | $ | 5,812 |
| | $ | 5,592 |
| | $ | 6,028 |
| | | $ | 4,292 |
| | $ | 6,028 |
|
| | | | | | | | | | | | | | | |
| Troubled debt restructuring: | | | | | | | | | | | | | | |
| Troubled debt restructurings - accruing | $ | 6,094 |
| | $ | 6,154 |
| | $ | 7,352 |
| | $ | 7,603 |
| | $ | 8,589 |
| | | $ | 6,094 |
| | $ | 8,589 |
|
| Troubled debt restructurings - nonaccrual | 1,673 |
| | 1,674 |
| | 2,094 |
| | 2,094 |
| | 2,261 |
| | | 1,673 |
| | 2,261 |
|
| Total troubled debt restructurings | $ | 7,767 |
| | $ | 7,828 |
| | $ | 9,446 |
| | $ | 9,697 |
| | $ | 10,850 |
| | | $ | 7,767 |
| | $ | 10,850 |
|
| | | | | | | | | | | | | | | |
| Covered by loss sharing agreements | | | | | | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | | | | | | |
| Other real estate owned | $ | 4,554 |
| | $ | 5,558 |
| | $ | 8,014 |
| | $ | 9,895 |
| | $ | 10,942 |
| | | $ | 4,554 |
| | $ | 10,942 |
|
Covered loans 90+ days delinquent (4) | 5,434 |
| | 5,315 |
| | 3,156 |
| | 8,825 |
| | 8,661 |
| | | 5,434 |
| | 8,661 |
|
| Total nonperforming covered assets | $ | 9,988 |
| | $ | 10,873 |
| | $ | 11,170 |
| | $ | 18,720 |
| | $ | 19,603 |
| | | $ | 9,988 |
| | $ | 19,603 |
|
__________________________________
| |
| (1) | Includes previously acquired loans in the amount of $8.2 million, $8.6 million and $9.1 million at December 31, 2014, 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 |
| | 12/31/2014 | | 9/30/2014 | | 6/30/2014 | | 3/31/2014 | | 12/31/2013 | | | 12/31/2014 | | 12/31/2013 |
| | | | | | | | | | | | | | | |
| Return on equity (annualized) | 3.09 | % | | 1.78 | % | | 2.71 | % | | 2.19 | % | | 2.39 | % | | | 3.09 | % | | 2.39 | % |
| Return on assets (annualized) | 0.68 | % | | 0.41 | % | | 0.67 | % | | 0.55 | % | | 0.60 | % | | | 0.68 | % | | 0.60 | % |
| Net interest margin (annualized) | 3.47 | % | | 3.14 | % | | 3.26 | % | | 3.18 | % | | 3.29 | % | | | 3.47 | % | | 3.29 | % |
Net interest margin, excluding the effects of purchase accounting (1) | 3.14 | % | | 2.95 | % | | 2.90 | % | | 2.85 | % | | 2.77 | % | | | 3.14 | % | | 2.77 | % |
| Bank tier 1 leverage ratio | 18.31 | % | | 17.67 | % | | 19.51 | % | | 19.25 | % | | 19.05 | % | | | 18.31 | % | | 19.05 | % |
| Bank total risk-based capital ratio | 26.46 | % | | 27.90 | % | | 32.93 | % | | 34.18 | % | | 33.83 | % | | | 26.46 | % | | 33.83 | % |
| Effective tax rate | 31.96 | % | | 31.58 | % | | 32.77 | % | | 31.73 | % | | 29.90 | % | | | 31.96 | % | | 29.90 | % |
| Yield on loans | 5.14 | % | | 5.05 | % | | 5.44 | % | | 5.41 | % | | 5.55 | % | | | 5.14 | % | | 5.55 | % |
| Cost of deposits | 0.48 | % | | 0.49 | % | | 0.49 | % | | 0.49 | % | | 0.53 | % | | | 0.48 | % | | 0.53 | % |
| | | | | | | | | | | | | | | |
| Ratios of non-covered assets: | | | | | | | | | | | | | | |
| Allowance for loan losses as a % of total loans | 1.49 | % | | 1.55 | % | | 1.65 | % | | 1.71 | % | | 1.74 | % | | | 1.49 | % | | 1.74 | % |
| Allowance for loan losses as a % of nonperforming loans | 254.47 | % | | 199.64 | % | | 192.06 | % | | 177.76 | % | | 170.74 | % | | | 254.47 | % | | 170.74 | % |
| Nonperforming assets as a % of total loans and REO | 0.75 | % | | 1.09 | % | | 1.11 | % | | 1.14 | % | | 1.24 | % | | | 0.75 | % | | 1.24 | % |
| Nonperforming assets as a % of total assets | 0.48 | % | | 0.65 | % | | 0.62 | % | | 0.59 | % | | 0.64 | % | | | 0.48 | % | | 0.64 | % |
| Net charge-offs as a % of average loans (annualized) | (0.01 | )% | | 0.10 | % | | 0.18 | % | | 0.05 | % | | — | % | | | (0.01 | )% | | — | % |
__________________________________
| |
| (1) | Net interest income excluding accretion and amortization of loss share loans receivable divided by average net interest earning assets excluding average loan accretable discounts in the amount of $5.5 million, $6.1 million, $5.5 million, $3.5 million, and $4.4 million, for the quarters ended December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014, and December 31, 2013, respectively. |
Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
|
| | | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year to Date |
| | 12/31/2014 | | 12/31/2013 |
| | 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 | $ | 63,892 |
| | $ | 41 |
| | 0.26 | % | | $ | 133,312 |
| | $ | 85 |
| | 0.26 | % |
| FHLB common stock and other equity securities | 3,460 |
| | 37 |
| | 4.24 |
| | 3,940 |
| | 30 |
| | 3.05 |
|
| Mortgage-backed securities and collateralized mortgage obligations available for sale | 173,610 |
| | 831 |
| | 1.91 |
| | 192,594 |
| | 969 |
| | 2.01 |
|
Other investment securities available for sale (1) | 15,549 |
| | 45 |
| | 1.15 |
| | 19,629 |
| | 19 |
| | 0.38 |
|
Loans receivable (1)(2)(3)(4) | 624,082 |
| | 7,343 |
| | 4.71 |
| | 588,105 |
| | 6,962 |
| | 4.74 |
|
Accretion and amortization of loss share loans receivable (5) | | | 672 |
| | 0.43 |
| | | | 1,192 |
| | 0.80 |
|
| Total interest-earning assets | 880,593 |
| | 8,969 |
| | 4.07 |
| | 937,580 |
| | 9,257 |
| | 3.95 |
|
| Total noninterest-earning assets | 110,087 |
| | | | |
| | 147,546 |
| | | | |
|
| Total assets | $ | 990,680 |
| | | | |
| | $ | 1,085,126 |
| | | | |
|
| Liabilities and Equity: | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing liabilities: | |
| | |
| | |
| | |
| | |
| | |
|
| NOW accounts | $ | 166,124 |
| | $ | 54 |
| | 0.13 | % | | $ | 169,631 |
| | $ | 47 |
| | 0.11 | % |
| Bank rewarded checking | 47,313 |
| | 27 |
| | 0.23 |
| | 48,738 |
| | 30 |
| | 0.25 |
|
| Savings accounts | 48,232 |
| | 2 |
| | 0.02 |
| | 47,877 |
| | 3 |
| | 0.03 |
|
| Money market deposit accounts | 125,302 |
| | 69 |
| | 0.22 |
| | 130,433 |
| | 70 |
| | 0.21 |
|
| Certificate of deposit accounts | 224,592 |
| | 581 |
| | 1.04 |
| | 268,962 |
| | 735 |
| | 1.09 |
|
| Total interest-bearing deposits | 611,563 |
| | 733 |
| | 0.48 |
| | 665,641 |
| | 885 |
| | 0.53 |
|
| Borrowed funds | 55,381 |
| | 603 |
| | 4.35 |
| | 60,000 |
| | 651 |
| | 4.34 |
|
| Total interest-bearing liabilities | 666,944 |
| | 1,336 |
| | 0.80 |
| | 725,641 |
| | 1,536 |
| | 0.85 |
|
| Noninterest-bearing deposits | 95,240 |
| | | | | | 73,201 |
| | | | |
| Other noninterest-bearing liabilities | 11,630 |
| | | | | | 11,801 |
| | | | |
| Total noninterest-bearing liabilities | 106,870 |
| | | | | | 85,002 |
| | | | |
| Total liabilities | 773,814 |
| | | | | | 810,643 |
| | | | |
| Total stockholders' equity | 216,866 |
| | | | | | 274,483 |
| | | | |
| Total liabilities and stockholders' equity | $ | 990,680 |
| | | | | | $ | 1,085,126 |
| | | | |
| Net interest income | |
| | $ | 7,633 |
| | |
| | |
| | $ | 7,721 |
| | |
|
Net interest earning assets (6) | |
| | $ | 213,649 |
| | |
| | |
| | $ | 211,939 |
| | |
|
Net interest rate spread (7) | |
| | |
| | 3.27 | % | | |
| | |
| | 3.10 | % |
Net interest margin (8) | |
| | |
| | 3.47 | % | | |
| | |
| | 3.29 | % |
Net interest margin, excluding the effects of purchase accounting (9) | | | | | 3.14 | % | | | | | | 2.77 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities | |
| | |
| | 132.03 | % | | |
| | |
| | 129.21 | % |
__________________________________
| |
| (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 margin, excluding the effects of purchase accounting represents net interest income excluding accretion and amortization of loss share loans receivable as a percentage of average net interest earning assets excluding loan accretable discounts in the amount of $5.5 million and $4.4 million for the three months ended December 31, 2014 and December 31, 2013, respectively. |
