Charter Financial Corporation (the “Company”) (NASDAQ:CHFN) today
reported net income of $3.3 million for the quarter ended
March 31, 2017, or $0.23 and $0.22 per basic and
diluted share, respectively, compared with net income of $2.1
million, or $0.15 and $0.14 per basic and diluted share,
respectively, for the quarter ended March 31,
2016.
Net income for the current-year quarter
increased $1.2 million over the prior-year quarter. Driving factors
were increases in loan interest income and deposit fee income from
the acquisition of Community Bank of the South ("CBS") and a
negative provision of $150,000, resulting from continued net
recoveries. These increases were partially offset by an increase of
$847,000 in noninterest expense, largely attributable to increased
ongoing operational costs post-acquisition.
Net income for the six months ended
March 31, 2017 was $8.4 million, or $0.59 and $0.55 per basic
and diluted share, respectively, compared with net income of $6.8
million, or $0.46 and $0.44 per basic and diluted share,
respectively, for the six months ended March 31, 2016.
Quarterly Operating Results
Chairman and CEO Robert L. Johnson said, “We
delivered strong earnings to our shareholders in the second quarter
due in part to excellent returns from our CBS acquisition as well
as the continued growth of our bankcard fee program. Though we know
we still have room for improvement, our efficiency ratio of 66.35%,
compared to 75.23% in the prior-year quarter, shows we've made
significant progress in leveraging our operational structure.
Sequentially, the first quarter of fiscal 2017 had numerous
one-time items which benefited our results, and our second quarter
was impacted negatively by typical seasonal items, such as deposit
fees and mortgage activity, making it a challenge to compare
quarters."
Quarterly earnings for the second quarter of
fiscal 2017 compared with the second quarter of fiscal 2016 were
positively impacted by:
- An increase in loan interest income of $3.0 million, or 34.3%,
and an increase in loan interest income excluding accretion of
acquired loan discounts of $3.5 million, or 43.8%, both largely due
to the acquisition of CBS.
- A negative provision of $150,000 related to continued net
recoveries of $156,000 during the quarter, and positive asset
quality, versus no such provision in the same period last
year.
- An increase in deposit and bankcard fee income of $258,000, or
9.2%.
- A gain on investment securities available for sale of $248,000,
compared to no such gains in the second quarter of fiscal
2016.
- An increase in brokerage commissions and gain on sale of loans
of $78,000 and $183,000, respectively, compared to the prior-year
period.
- A decrease in legal and professional fees and data processing
of $291,000, or 42.9%, and $41,000, or 4.0%, respectively, largely
due to acquisition expenses during the prior-year period.
Quarterly earnings for the second quarter of
fiscal 2017 compared with the second quarter of fiscal 2016 were
negatively impacted by:
- An increase in interest expense on deposits of $473,000, or
68.4%, due to higher balances from both legacy accounts and those
assumed in the CBS acquisition.
- An increase in salaries and employee benefits of $791,000, or
15.0%, due to higher payroll related to the CBS acquisition.
- The absence of recoveries on loans formerly covered by FDIC
loss sharing agreements in the current-year quarter, compared to
$750,000 of such recoveries in the second quarter of fiscal
2016.
- An increase in income tax expense of $1.2 million, or 104.4%,
to $2.3 million at March 31, 2017, compared to $1.1 million in
the prior-year period attributable to increased net income as our
tax-advantaged investments and state tax credits have remained
stable, leading to a higher effective tax rate.
Financial Condition
Total assets increased $46.4 million to $1.5
billion at March 31, 2017, from $1.4 billion at
September 30, 2016, largely attributable to a $48.4 million
increase in cash and cash equivalents, driven by increased deposits
and paydowns and sales of investment securities available for sale.
Net loans grew $13.5 million, or 1.4%, to $1.0 billion at
March 31, 2017, from $994.1 million at September 30,
2016. Loans increased $16.9 million during the current quarter
after falling $3.5 million in the first quarter.
"We are pleased with our strong loan and
checking account growth in the second quarter," Mr. Johnson
continued. "As we continue to leverage our footprint in Metro
Atlanta, including the recent opening of our Buckhead branch, we
believe we can provide solid net interest income with a low risk
profile, as we've done in our legacy markets."
Total deposits increased $39.9 million to $1.2
billion during the six months ended March 31, 2017.
Transaction and certificate of deposit accounts increased $35.3
million and $4.1 million, respectively, while money market accounts
decreased $478,000 from September 30, 2016.
From September 30, 2016 to March 31,
2017, total stockholders' equity increased $5.3 million to $208.4
million from $203.1 million due primarily to $8.4 million of net
income, partially offset by a $2.8 million decrease in accumulated
other comprehensive income on the Company's portfolio of investment
securities available for sale. The decrease in accumulated other
comprehensive income was driven by market interest rate changes
since the November presidential election. Book value per share
increased to $13.84 while tangible book value per share increased
from $11.36 to $11.70, both due to the Company's retention of
earnings.
Net Interest Income and Net Interest
Margin
Net interest income increased to $11.7 million
for the second quarter of fiscal 2017, compared with $8.7 million
for the prior-year period. Year over year, interest income improved
$3.4 million due to a $3.5 million increase in loan interest
income, excluding accretion of acquired loan discounts. The change
was largely due to higher average balances from the acquisition of
CBS completed in the third quarter of fiscal 2016, offset by a
$475,000 decrease in net purchase discount accretion. Total
interest expense increased $414,000 to $1.7 million for the current
quarter, largely due to increased balances of higher-costing
deposits from CBS, as well as $124,000 of interest expense on the
Company's subordinated debentures assumed in the CBS acquisition.
These increases were offset partially by a $182,000 decline in
interest expense on FHLB borrowings due to a restructuring of one
of the Company's $25.0 million advances in March of 2017 from an
interest rate of 4.30% to 3.43%, as well as the replacement of the
Company's other $25.0 million advance with a new, substantially
lower-costing advance in May of 2016.
Net interest margin was 3.52% for the second
quarter of fiscal 2017, compared to 3.72% for the second quarter of
fiscal 2016. The decrease was largely due to higher interest
expense as a result of higher customer deposit balances, including
greater-costing acquired CBS deposits and legacy growth, as well as
a continued reduction in accretion income. Net interest margin was
also impacted negatively by our higher balances in lower-yielding
Federal Reserve deposits. The Company's net interest margin,
excluding the effects of purchase accounting, increased to 3.41%
for the quarter ended March 31, 2017, from 3.36% for the
quarter ended March 31, 2016.
Net interest income for the six months ended
March 31, 2017, increased $6.0 million, or 33.5%, to $23.9
million, compared to $17.9 million for the prior-year period.
Interest income increased $6.8 million to $27.2 million due to
increased loan balances as a result of the CBS acquisition, as well
as a $258,000 increase in interest bearing deposits in other
financial institutions, primarily the result of increased cash
balances and the Federal Reserve's increases of interest rates.
Loan interest income, excluding accretion of acquired loan
discounts, increased $7.1 million, while net purchase discount
accretion decreased $920,000.
The Company currently expects to realize
remaining loan discount accretion of $139,000 over the next two
quarters related to its 2011 acquisition of the First National Bank
of Florida under purchase accounting rules. The Company has $1.9
million of remaining loan discount accretion related to the CBS
acquisition, which will be accreted over the life of the loans
acquired.
Provision for Loan Losses
The Company recorded negative provisions for
loan losses of $150,000 and $900,000 in the three and six month
periods ended March 31, 2017, respectively, due to the
continued positive credit quality trends of its loan portfolio and
net recoveries of previously charged-off loans. No provision was
recorded in the three and six month periods ended March 31,
2016.
Noninterest Income and
Expense
Noninterest income increased $33,000 to $4.5
million in the fiscal 2017 second quarter from the fiscal 2016
second quarter. The current-year quarter included increases in core
components of $258,000 in bankcard fee and other deposit fee income
and $183,000 in gains on sale of loans, as well as $78,000 in
brokerage commissions. Bankcard fees increased $178,000, or 14.9%,
compared to the prior-year period, due mainly to the Company's
marketing efforts for signature debit card transactions. The
Company also recognized a gain of $248,000 on the sale of
investment securities available for sale. These increases were
partially offset by $750,000 in recoveries on loans formerly
covered by loss sharing agreements in the prior-year period. No
such recoveries were recorded in the current quarter.
Noninterest expense for the quarter ended
March 31, 2017, increased $847,000 to $10.7 million, compared
with $9.9 million for the prior-year quarter, due in part to
increases of $791,000 in salaries and employee benefits and $70,000
in occupancy, both of which were attributable to higher ongoing
operational costs from the CBS acquisition, as well as a $113,000
increase in core deposit intangible amortization expense. These
increases were partially offset by reductions of $291,000 and
$41,000 in legal and professional fees and data processing, both of
which were related to deal costs in preparation for the CBS
acquisition in the prior year.
"We were able to achieve significant cost saving
through the CBS integration," Mr. Johnson continued. "Along with
our improved efficiency ratio, we've seen a decline of nearly
$900,000 in noninterest expense since the third quarter of fiscal
2016, net of $3.5 million of deal costs recorded in that quarter,
our first with CBS on the books."
Noninterest income for the six months ended
March 31, 2017, decreased $1.8 million to $9.5 million,
compared with $11.3 million for the prior-year period. In the
fiscal 2017 period, the Company recorded $250,000 of recoveries on
loans formerly covered by FDIC loss sharing agreements, compared to
$3.6 million of such recoveries in the prior-year period. The
decrease in recoveries was partially offset by increased service
charge and bankcard fees of $530,000, gains on the sale of loans of
$566,000, gains on investment securities available for sale of
$212,000 and brokerage commissions of $102,000 during the
current-year period.
Noninterest expense for the six months ended
March 31, 2017 increased $2.0 million to $21.0 million
compared with $19.0 million for the prior-year period due to
increases of $1.7 million, $336,000, and $218,000 in salaries,
occupancy and core deposit intangible amortization expense,
respectively, in the current-year period, all of which were
attributable to ongoing operational costs from the acquisition of
CBS. These increases were offset in part by reductions of $396,000
and $387,000 in the net cost of operations of real estate owned and
legal and professional fees, respectively, compared to the
prior-year period.
Asset Quality
Nonperforming assets at March 31, 2017 were
at 0.24% of total assets, down from 0.45% at September 30,
2016, due to payoffs of two long-standing, high-balance,
non-performing loans and continued positive asset quality trends.
The allowance for loan losses was at 1.04% of total loans and
652.47% of nonperforming loans at March 31, 2017, compared to
1.03% and 277.66%, respectively, at September 30, 2016. Not
included in the allowance is $1.9 million in yield and credit
discounts on the CBS-acquired loans. At March 31, 2017, the
allowance for loan losses was 1.24% of legacy loans, compared to
1.35% at September 30, 2016. The Company recorded net loan
recoveries of $156,000 and $1.0 million in its allowance for loan
losses for the three and six months ended March 31,
2017, respectively, compared with net loan recoveries of $155,000
and $361,000 for the same periods in the prior year.
Capital Management
From the first quarter of fiscal 2014 through
the first quarter of fiscal 2017, the Company has repurchased 8.1
million shares, or 35.6%, of its common stock, for $91.9 million.
The Company repurchased no shares during the quarter ended
March 31, 2017. On April 25, 2017, the Company announced an
increased dividend of $0.065 per share, the third consecutive
quarterly increase after a $0.05 per share dividend was announced
in the previous 14 quarters.
Mr. Johnson concluded, “Our stock buybacks,
acquisitions and historically conservative lending practices have
provided us with a robust balance sheet with superior asset
quality. With nonperforming assets at 0.24% of total assets,
tangible book value per share of $11.70, and a year-to-date return
on assets of 1.15%, we are well positioned for continued quality
returns for the last half of fiscal 2017. We will also continue to
seek out growth opportunities, including potential strategic
acquisitions that could be additive to our existing franchise and
strongly accretive to our earnings. With our current market
success, we are also well positioned to potentially use our stock
as currency in such a transaction."
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.
CharterBank is headquartered in West Point, Georgia, and operates
branches in Metro Atlanta, the I-85 corridor south to Auburn,
Alabama, and the Florida Gulf Coast. CharterBank's deposits are
insured by the Federal Deposit Insurance Corporation. Investors may
obtain additional information about Charter Financial Corporation
and CharterBank on the internet at www.charterbk.com under About
Us.
Forward-Looking Statements
This release may contain “forward-looking
statements” within the meaning of the federal securities laws.
These statements may be identified by use of such words as
“believe,” “expect,” “anticipate,” “should,” “well-positioned,”
“planned,” “intend,” “strive,” “probably,” “focused on,”
“estimated,” “working on,” “continue to,” “seek,” "leverage," 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, increasing stockholder value, 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 the Company's inability to implement its
business strategy; general and local economic conditions; changes
in interest rates, deposit flows, demand for mortgages and other
loans, real estate values, and competition; changes in loan
defaults and charge-off rates; changes in the value of securities
and other assets, adequacy of loan loss reserves, or deposit levels
necessitating an increase in borrowing to fund loans and
investments; the changing exposure to credit risk; the inability to
identify suitable future acquisition targets; the potential
inability to effectively manage the new businesses and lending
teams that transitioned from Community Bank of the South; the
inability to properly leverage the expansion into the North Atlanta
market; changes in legislation or regulation; other economic,
competitive, governmental, regulatory, and technological factors
affecting our operations, pricing, products, and services; the
effect of cyberterrorism and system failures; the uncertainty in
global markets resulting from the new administration; and the
effects of geopolitical instability and risks such as terrorist
attacks, the effects of weather and natural disasters such as
floods, droughts, wind, tornadoes and hurricanes, and the effect of
any damage to our reputation resulting from developments relating
to any of the factors listed herein. 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. Additional information concerning factors
that could cause actual results to differ materially from those
forward-looking statements is contained from time to time in the
Company's filings with the Securities and Exchange Commission. The
Company refers you to the section entitled “Risk Factors” contained
in the Company's Annual Report on Form 10-K for the fiscal year
ended September 30, 2016. Copies of each filing may be
obtained from the Company or the Securities and Exchange
Commission.
The risks included here are not exhaustive and
undue reliance should not be placed on any forward-looking
statements, which are based on current expectations. All written
and oral forward-looking statements attributable to the Company,
its management, or persons acting on their behalf are qualified in
their entirety by these cautionary statements. Further,
forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time unless otherwise required by law.
Charter Financial
CorporationCondensed Consolidated Statements of
Financial Condition (unaudited) |
|
|
March 31, 2017 |
|
September 30, 2016 (1) |
Assets |
Cash and amounts due
from depository institutions |
$ |
18,823,967 |
|
|
$ |
14,472,867 |
|
Interest-earning
deposits in other financial institutions |
121,461,070 |
|
|
77,376,632 |
|
Cash and
cash equivalents |
140,285,037 |
|
|
91,849,499 |
|
Loans held for sale,
fair value of $2,385,655 and $2,991,756 |
2,353,484 |
|
|
2,941,982 |
|
Certificates of deposit
held at other financial institutions |
10,511,240 |
|
|
14,496,410 |
|
Investment securities
available for sale |
191,482,806 |
|
|
206,336,287 |
|
Federal Home Loan Bank
stock |
3,484,600 |
|
|
3,361,800 |
|
Restricted securities,
at cost |
279,000 |
|
|
279,000 |
|
Loans receivable |
1,019,172,569 |
|
|
1,005,702,737 |
|
Unamortized loan
origination fees, net |
(1,116,362 |
) |
|
(1,278,830 |
) |
Allowance for loan
losses |
(10,504,538 |
) |
|
(10,371,416 |
) |
Loans
receivable, net |
1,007,551,669 |
|
|
994,052,491 |
|
Other real estate
owned |
1,957,194 |
|
|
2,706,461 |
|
Accrued interest and
dividends receivable |
3,502,097 |
|
|
3,442,051 |
|
Premises and equipment,
net |
28,397,858 |
|
|
28,078,591 |
|
Goodwill |
29,793,756 |
|
|
29,793,756 |
|
Other intangible
assets, net of amortization |
2,336,512 |
|
|
2,639,608 |
|
Cash surrender value of
life insurance |
49,848,239 |
|
|
49,268,973 |
|
Deferred income
taxes |
5,834,565 |
|
|
4,366,522 |
|
Other assets |
7,178,170 |
|
|
4,775,805 |
|
Total assets |
$ |
1,484,796,227 |
|
|
$ |
1,438,389,236 |
|
Liabilities and Stockholders’
Equity |
Liabilities: |
|
|
|
Deposits |
$ |
1,201,731,475 |
|
|
$ |
1,161,843,586 |
|
Long-term
borrowings |
50,000,000 |
|
|
50,000,000 |
|
Floating
rate junior subordinated debt |
6,656,098 |
|
|
6,587,549 |
|
Advance
payments by borrowers for taxes and insurance |
1,809,038 |
|
|
2,298,513 |
|
Other
liabilities |
16,186,614 |
|
|
14,510,052 |
|
Total
liabilities |
1,276,383,225 |
|
|
1,235,239,700 |
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.01 par value; 15,060,616 shares issued and outstanding at
March 31, 2017 and 15,031,076 shares issued and outstanding at
September 30, 2016 |
150,606 |
|
|
150,311 |
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized at
March 31, 2017 and September 30, 2016 |
— |
|
|
— |
|
Additional paid-in capital |
84,609,090 |
|
|
83,651,623 |
|
Unearned
compensation – ESOP |
(4,673,761 |
) |
|
(5,106,169 |
) |
Retained
earnings |
130,072,917 |
|
|
123,349,890 |
|
Accumulated other comprehensive (loss) income |
(1,745,850 |
) |
|
1,103,881 |
|
Total
stockholders’ equity |
208,413,002 |
|
|
203,149,536 |
|
Total liabilities and stockholders’ equity |
$ |
1,484,796,227 |
|
|
$ |
1,438,389,236 |
|
|
(1) Financial information at September 30, 2016 has been derived
from audited financial statements. |
Charter Financial
CorporationCondensed Consolidated Statements of
Income (unaudited) |
|
|
|
|
|
Three Months Ended March
31, |
|
Six Months Ended March 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest income: |
|
|
|
|
|
|
|
Loans
receivable |
$ |
11,903,416 |
|
|
$ |
8,863,437 |
|
|
$ |
24,473,319 |
|
|
$ |
18,304,962 |
|
Taxable
investment securities |
1,103,740 |
|
|
934,536 |
|
|
2,199,640 |
|
|
1,881,047 |
|
Nontaxable investment securities |
4,571 |
|
|
— |
|
|
9,143 |
|
|
— |
|
Federal
Home Loan Bank stock |
40,309 |
|
|
36,149 |
|
|
79,519 |
|
|
75,077 |
|
Interest-earning deposits in other financial institutions |
213,310 |
|
|
54,047 |
|
|
324,127 |
|
|
66,438 |
|
Certificates of deposit held at other financial institutions |
38,775 |
|
|
— |
|
|
81,404 |
|
|
— |
|
Restricted securities |
2,679 |
|
|
— |
|
|
5,252 |
|
|
— |
|
Total
interest income |
13,306,800 |
|
|
9,888,169 |
|
|
27,172,404 |
|
|
20,327,524 |
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
1,165,459 |
|
|
692,218 |
|
|
2,323,776 |
|
|
1,357,652 |
|
Borrowings |
362,880 |
|
|
545,368 |
|
|
749,855 |
|
|
1,098,250 |
|
Floating
rate junior subordinated debt |
123,631 |
|
|
— |
|
|
244,422 |
|
|
— |
|
Total
interest expense |
1,651,970 |
|
|
1,237,586 |
|
|
3,318,053 |
|
|
2,455,902 |
|
Net interest income |
11,654,830 |
|
|
8,650,583 |
|
|
23,854,351 |
|
|
17,871,622 |
|
Provision
for loan losses |
(150,000 |
) |
|
— |
|
|
(900,000 |
) |
|
— |
|
Net interest income after provision for loan losses |
11,804,830 |
|
|
8,650,583 |
|
|
24,754,351 |
|
|
17,871,622 |
|
Noninterest
income: |
|
|
|
|
|
|
|
Service
charges on deposit accounts |
1,700,713 |
|
|
1,620,144 |
|
|
3,588,524 |
|
|
3,372,702 |
|
Bankcard
fees |
1,366,686 |
|
|
1,189,181 |
|
|
2,649,045 |
|
|
2,335,007 |
|
Gain on
investment securities available for sale |
247,780 |
|
|
— |
|
|
247,780 |
|
|
35,965 |
|
Bank
owned life insurance |
246,915 |
|
|
244,860 |
|
|
579,266 |
|
|
565,523 |
|
Gain on
sale of loans |
542,824 |
|
|
359,750 |
|
|
1,274,086 |
|
|
707,606 |
|
Brokerage
commissions |
224,567 |
|
|
146,430 |
|
|
390,563 |
|
|
288,145 |
|
Recoveries on acquired loans previously covered under FDIC loss
share agreements |
— |
|
|
750,000 |
|
|
250,000 |
|
|
3,625,000 |
|
Other |
216,671 |
|
|
202,538 |
|
|
549,737 |
|
|
413,495 |
|
Total
noninterest income |
4,546,156 |
|
|
4,512,903 |
|
|
9,529,001 |
|
|
11,343,443 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
6,078,575 |
|
|
5,287,339 |
|
|
12,212,248 |
|
|
10,550,328 |
|
Occupancy |
1,219,866 |
|
|
1,150,155 |
|
|
2,543,189 |
|
|
2,207,430 |
|
Data
processing |
1,003,974 |
|
|
1,045,336 |
|
|
1,912,929 |
|
|
1,869,852 |
|
Legal and
professional |
387,590 |
|
|
678,565 |
|
|
671,745 |
|
|
1,058,403 |
|
Marketing |
411,943 |
|
|
379,088 |
|
|
768,467 |
|
|
668,663 |
|
Federal
insurance premiums and other regulatory fees |
197,261 |
|
|
210,038 |
|
|
362,756 |
|
|
433,881 |
|
Net cost
(benefit) of operations of real estate owned |
13,827 |
|
|
71,408 |
|
|
(345,443 |
) |
|
50,164 |
|
Furniture
and equipment |
228,383 |
|
|
161,308 |
|
|
402,437 |
|
|
329,722 |
|
Postage,
office supplies and printing |
223,317 |
|
|
170,670 |
|
|
493,702 |
|
|
355,382 |
|
Core
deposit intangible amortization expense |
149,435 |
|
|
36,154 |
|
|
303,097 |
|
|
85,138 |
|
Other |
835,540 |
|
|
712,710 |
|
|
1,714,092 |
|
|
1,371,838 |
|
Total
noninterest expenses |
10,749,711 |
|
|
9,902,771 |
|
|
21,039,219 |
|
|
18,980,801 |
|
Income
before income taxes |
5,601,275 |
|
|
3,260,715 |
|
|
13,244,133 |
|
|
10,234,264 |
|
Income
tax expense |
2,284,480 |
|
|
1,117,627 |
|
|
4,881,671 |
|
|
3,476,898 |
|
Net income |
$ |
3,316,795 |
|
|
$ |
2,143,088 |
|
|
$ |
8,362,462 |
|
|
$ |
6,757,366 |
|
Basic net income per
share |
$ |
0.23 |
|
|
$ |
0.15 |
|
|
$ |
0.59 |
|
|
$ |
0.46 |
|
Diluted net income per
share |
$ |
0.22 |
|
|
$ |
0.14 |
|
|
$ |
0.55 |
|
|
$ |
0.44 |
|
Weighted average number
of common shares outstanding |
14,322,290 |
|
|
14,224,862 |
|
|
14,264,248 |
|
|
14,557,000 |
|
Weighted average number
of common and potential common shares outstanding |
15,340,320 |
|
|
14,909,947 |
|
|
15,282,278 |
|
|
15,242,085 |
|
Charter Financial
CorporationSupplemental Financial Data
(unaudited)in thousands except per share data |
|
|
Quarter to Date |
|
|
Year to Date |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 (1) |
|
6/30/2016 |
|
3/31/2016 |
|
|
3/31/2017 |
|
3/31/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
balance sheet data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,484,796 |
|
|
$ |
1,461,667 |
|
|
$ |
1,438,389 |
|
|
$ |
1,427,851 |
|
|
$ |
1,051,281 |
|
|
|
$ |
1,484,796 |
|
|
$ |
1,051,281 |
|
Cash and cash
equivalents |
140,285 |
|
|
131,849 |
|
|
91,849 |
|
|
106,108 |
|
|
79,331 |
|
|
|
140,285 |
|
|
79,331 |
|
Loans receivable,
net |
1,007,552 |
|
|
990,635 |
|
|
994,052 |
|
|
993,786 |
|
|
701,399 |
|
|
|
1,007,552 |
|
|
701,399 |
|
Other real estate
owned |
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
3,181 |
|
|
2,711 |
|
|
|
1,957 |
|
|
2,711 |
|
Securities available
for sale |
191,483 |
|
|
196,279 |
|
|
206,336 |
|
|
169,737 |
|
|
172,197 |
|
|
|
191,483 |
|
|
172,197 |
|
Transaction
accounts |
513,294 |
|
|
481,841 |
|
|
478,028 |
|
|
472,123 |
|
|
353,834 |
|
|
|
513,294 |
|
|
353,834 |
|
Total deposits |
1,201,731 |
|
|
1,186,347 |
|
|
1,161,844 |
|
|
1,155,245 |
|
|
791,692 |
|
|
|
1,201,731 |
|
|
791,692 |
|
Borrowings |
56,656 |
|
|
56,622 |
|
|
56,588 |
|
|
56,553 |
|
|
50,000 |
|
|
|
56,656 |
|
|
50,000 |
|
Total stockholders’
equity |
208,413 |
|
|
205,500 |
|
|
203,150 |
|
|
199,800 |
|
|
198,031 |
|
|
|
208,413 |
|
|
198,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
earnings summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
13,307 |
|
|
$ |
13,866 |
|
|
$ |
13,822 |
|
|
$ |
13,635 |
|
|
$ |
9,888 |
|
|
|
$ |
27,172 |
|
|
$ |
20,328 |
|
Interest expense |
1,652 |
|
|
1,666 |
|
|
1,622 |
|
|
1,552 |
|
|
1,237 |
|
|
|
3,318 |
|
|
2,456 |
|
Net
interest income |
11,655 |
|
|
12,200 |
|
|
12,200 |
|
|
12,083 |
|
|
8,651 |
|
|
|
23,854 |
|
|
17,872 |
|
Provision for loan
losses |
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
(100 |
) |
|
— |
|
|
|
(900 |
) |
|
— |
|
Net
interest income after provision for loan losses |
11,805 |
|
|
12,950 |
|
|
12,350 |
|
|
12,183 |
|
|
8,651 |
|
|
|
24,754 |
|
|
17,872 |
|
Noninterest income |
4,546 |
|
|
4,983 |
|
|
4,918 |
|
|
4,703 |
|
|
4,513 |
|
|
|
9,529 |
|
|
11,343 |
|
Noninterest
expense |
10,750 |
|
|
10,290 |
|
|
11,354 |
|
|
15,064 |
|
|
9,903 |
|
|
|
21,039 |
|
|
18,981 |
|
Income tax expense |
2,284 |
|
|
2,597 |
|
|
2,103 |
|
|
527 |
|
|
1,118 |
|
|
|
4,882 |
|
|
3,477 |
|
Net
income |
$ |
3,317 |
|
|
$ |
5,046 |
|
|
$ |
3,811 |
|
|
$ |
1,295 |
|
|
$ |
2,143 |
|
|
|
$ |
8,362 |
|
|
$ |
6,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
$ |
0.23 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
$ |
0.09 |
|
|
$ |
0.15 |
|
|
|
$ |
0.59 |
|
|
$ |
0.46 |
|
Earnings per share –
fully diluted |
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
0.09 |
|
|
$ |
0.14 |
|
|
|
$ |
0.55 |
|
|
$ |
0.44 |
|
Cash dividends per
share |
$ |
0.060 |
|
|
$ |
0.055 |
|
|
$ |
0.050 |
|
|
$ |
0.050 |
|
|
$ |
0.050 |
|
|
|
$ |
0.115 |
|
|
$ |
0.100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
14,322 |
|
|
14,207 |
|
|
14,186 |
|
|
14,185 |
|
|
14,225 |
|
|
|
14,264 |
|
|
14,557 |
|
Weighted average
diluted shares |
15,340 |
|
|
15,065 |
|
|
14,798 |
|
|
14,842 |
|
|
14,910 |
|
|
|
15,282 |
|
|
15,242 |
|
Total shares
outstanding |
15,061 |
|
|
15,031 |
|
|
15,031 |
|
|
15,031 |
|
|
15,026 |
|
|
|
15,061 |
|
|
15,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
|
$ |
13.29 |
|
|
$ |
13.18 |
|
|
|
$ |
13.84 |
|
|
$ |
13.18 |
|
Tangible book value per
share (2) |
$ |
11.70 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
$ |
11.11 |
|
|
$ |
12.89 |
|
|
|
$ |
11.70 |
|
|
$ |
12.89 |
|
|
(1)
Financial information at and for the year ended September 30,
2016 has been derived from audited financial statements. |
(2)
Non-GAAP financial measure, calculated as total stockholders'
equity less goodwill and other intangible assets divided by
period-end shares outstanding. |
Charter Financial
CorporationSupplemental Information
(unaudited)dollars in thousands |
|
|
|
|
|
|
Quarter to Date |
|
|
Year to Date |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
|
3/31/2016 |
|
|
3/31/2017 |
|
3/31/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4
family residential real estate |
$ |
223,216 |
|
|
$ |
223,609 |
|
|
$ |
236,940 |
|
|
$ |
234,346 |
|
|
$ |
190,180 |
|
|
|
$ |
223,216 |
|
|
$ |
190,180 |
|
Commercial real estate |
608,206 |
|
|
595,207 |
|
|
595,157 |
|
|
586,082 |
|
|
392,946 |
|
|
|
608,206 |
|
|
392,946 |
|
Commercial |
73,119 |
|
|
73,182 |
|
|
71,865 |
|
|
64,700 |
|
|
43,741 |
|
|
|
73,119 |
|
|
43,741 |
|
Real
estate construction |
77,332 |
|
|
79,136 |
|
|
80,500 |
|
|
104,389 |
|
|
72,323 |
|
|
|
77,332 |
|
|
72,323 |
|
Consumer
and other |
37,300 |
|
|
31,212 |
|
|
21,241 |
|
|
15,638 |
|
|
13,205 |
|
|
|
37,300 |
|
|
13,205 |
|
Total
loans receivable |
$ |
1,019,173 |
|
|
$ |
1,002,346 |
|
|
$ |
1,005,703 |
|
|
$ |
1,005,155 |
|
|
$ |
712,395 |
|
|
|
$ |
1,019,173 |
|
|
$ |
712,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
10,499 |
|
|
$ |
10,371 |
|
|
$ |
10,118 |
|
|
$ |
9,850 |
|
|
$ |
9,695 |
|
|
|
$ |
10,371 |
|
|
$ |
9,489 |
|
Charge-offs |
(103 |
) |
|
(50 |
) |
|
(1 |
) |
|
(7 |
) |
|
(205 |
) |
|
|
(152 |
) |
|
(220 |
) |
Recoveries |
259 |
|
|
928 |
|
|
404 |
|
|
375 |
|
|
360 |
|
|
|
1,186 |
|
|
581 |
|
Provision |
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
(100 |
) |
|
— |
|
|
|
(900 |
) |
|
— |
|
Balance
at end of period |
$ |
10,505 |
|
|
$ |
10,499 |
|
|
$ |
10,371 |
|
|
$ |
10,118 |
|
|
$ |
9,850 |
|
|
|
$ |
10,505 |
|
|
$ |
9,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,610 |
|
|
$ |
1,527 |
|
|
$ |
3,735 |
|
|
$ |
3,371 |
|
|
$ |
2,098 |
|
|
|
$ |
1,610 |
|
|
$ |
2,098 |
|
Loans
delinquent 90 days or greater and still accruing |
— |
|
|
238 |
|
|
— |
|
|
— |
|
|
52 |
|
|
|
— |
|
|
52 |
|
Total
nonperforming loans |
1,610 |
|
|
1,765 |
|
|
3,735 |
|
|
3,371 |
|
|
2,150 |
|
|
|
1,610 |
|
|
2,150 |
|
Other
real estate owned |
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
3,181 |
|
|
2,711 |
|
|
|
1,957 |
|
|
2,711 |
|
Total
nonperforming assets |
$ |
3,567 |
|
|
$ |
3,926 |
|
|
$ |
6,441 |
|
|
$ |
6,552 |
|
|
$ |
4,861 |
|
|
|
$ |
3,567 |
|
|
$ |
4,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled
debt restructurings - accruing |
$ |
5,073 |
|
|
$ |
4,761 |
|
|
$ |
4,585 |
|
|
$ |
4,999 |
|
|
$ |
7,267 |
|
|
|
$ |
5,073 |
|
|
$ |
7,267 |
|
Troubled
debt restructurings - nonaccrual |
137 |
|
|
192 |
|
|
1,760 |
|
|
1,716 |
|
|
332 |
|
|
|
137 |
|
|
332 |
|
Total
troubled debt restructurings |
$ |
5,210 |
|
|
$ |
4,953 |
|
|
$ |
6,345 |
|
|
$ |
6,715 |
|
|
$ |
7,599 |
|
|
|
$ |
5,210 |
|
|
$ |
7,599 |
|
|
(1) Loans being accounted for under purchase accounting rules which
have associated accretion income established at the time of
acquisition remaining to recognize, that were greater than 90 days
delinquent or otherwise considered nonperforming loans are excluded
from this table. |
Charter Financial
CorporationSupplemental Information
(unaudited) |
|
|
|
|
|
|
Quarter to Date |
|
|
Year to Date |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
|
3/31/2016 |
|
|
3/31/2017 |
|
3/31/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(annualized) |
6.40 |
% |
|
9.84 |
% |
|
7.55 |
% |
|
2.61 |
% |
|
4.32 |
% |
|
|
8.11 |
% |
|
6.69 |
% |
Return on assets
(annualized) |
0.91 |
% |
|
1.39 |
% |
|
1.07 |
% |
|
0.38 |
% |
|
0.83 |
% |
|
|
1.15 |
% |
|
1.33 |
% |
Net interest margin
(annualized) |
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
3.97 |
% |
|
3.72 |
% |
|
|
3.61 |
% |
|
3.88 |
% |
Net interest margin,
excluding the effects of purchase accounting (1) |
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
3.53 |
% |
|
3.36 |
% |
|
|
3.44 |
% |
|
3.43 |
% |
Holding company tier 1
leverage ratio (2) |
12.92 |
% |
|
12.83 |
% |
|
12.68 |
% |
|
12.60 |
% |
|
18.89 |
% |
|
|
12.92 |
% |
|
18.89 |
% |
Holding company total
risk-based capital ratio (2) |
17.93 |
% |
|
17.38 |
% |
|
16.74 |
% |
|
15.93 |
% |
|
25.11 |
% |
|
|
17.93 |
% |
|
25.11 |
% |
Bank tier 1 leverage
ratio (2) (3) |
11.84 |
% |
|
11.70 |
% |
|
11.51 |
% |
|
11.32 |
% |
|
17.13 |
% |
|
|
11.84 |
% |
|
17.13 |
% |
Bank total risk-based
capital ratio (2) |
16.53 |
% |
|
15.91 |
% |
|
15.26 |
% |
|
14.99 |
% |
|
22.98 |
% |
|
|
16.53 |
% |
|
22.98 |
% |
Effective tax rate |
40.78 |
% |
|
33.98 |
% |
|
35.56 |
% |
|
28.91 |
% |
|
34.28 |
% |
|
|
36.86 |
% |
|
33.97 |
% |
Yield on loans |
4.74 |
% |
|
5.01 |
% |
|
5.07 |
% |
|
5.20 |
% |
|
5.03 |
% |
|
|
4.87 |
% |
|
5.18 |
% |
Cost of deposits |
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.43 |
% |
|
0.42 |
% |
|
|
0.46 |
% |
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios:
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a % of total loans (5) |
1.04 |
% |
|
1.05 |
% |
|
1.03 |
% |
|
1.00 |
% |
|
1.38 |
% |
|
|
1.04 |
% |
|
1.38 |
% |
Allowance
for loan losses as a % of nonperforming loans |
652.47 |
% |
|
594.81 |
% |
|
277.66 |
% |
|
300.10 |
% |
|
458.13 |
% |
|
|
652.47 |
% |
|
458.13 |
% |
Nonperforming assets as a % of total loans and OREO |
0.35 |
% |
|
0.39 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.68 |
% |
|
|
0.35 |
% |
|
0.68 |
% |
Nonperforming assets as a % of total assets |
0.24 |
% |
|
0.27 |
% |
|
0.45 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
|
0.24 |
% |
|
0.46 |
% |
Net
charge-offs (recoveries) as a % of average loans (annualized) |
(0.06 |
)% |
|
(0.35 |
)% |
|
(0.16 |
)% |
|
(0.15 |
)% |
|
(0.09 |
)% |
|
|
(0.21 |
)% |
|
(0.10 |
)% |
|
(1) Net interest income excluding accretion and amortization of
acquired loans divided by average net interest earning assets
excluding average loan accretable discounts, a non-GAAP measure, in
the amount of $2.2 million, $2.9 million, $3.8 million, $4.7
million, and $2.0 million for the quarters ended March 31,
2017, December 31, 2016, September 30, 2016,
June 30, 2016, and March 31, 2016, respectively. |
(2) Current period bank and holding company capital ratios are
estimated as of the date of this earnings release. |
(3) During the quarter ended June 30, 2016, a net downstream of
capital was made between the holding company and the bank in the
amount of $6.1 million as part of the Company's acquisition of
CBS. |
(4) Ratios for the three months ended March 31, 2017, December 31,
2016, September 30, 2016, June 30, 2016, and March 31, 2016 include
all assets with the exception of FAS ASC 310-30 loans that are
excluded from nonperforming loans due to the ongoing recognition of
accretion income established at the time of acquisition. |
(5) Accounting requirements for the third quarter 2016 acquisition
of CBS have affected the comparability of the allowance for loan
losses as a percentage of loans. Excluding former CBS loans
totaling $166.5 million, $191.9 million, $236.4 million and $264.7
million at March 31, 2017, December 31, 2016, September
30, 2016, and June 30, 2016, respectively, which were recorded at
acquisition date fair value, the allowance approximated 1.24%,
1.30%, 1.35% and 1.37% of all other loans at March 31, 2017,
December 31, 2016, September 30, 2016, and June 30, 2016,
respectively. |
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands |
|
|
|
Quarter to Date |
|
3/31/2017 |
|
3/31/2016 |
|
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 |
$ |
105,705 |
|
|
$ |
213 |
|
|
0.81 |
% |
|
$ |
47,144 |
|
|
$ |
54 |
|
|
0.46 |
% |
Certificates of deposit held at other financial institutions |
11,893 |
|
|
39 |
|
|
1.30 |
|
|
— |
|
|
— |
|
|
— |
|
FHLB
common stock and other equity securities |
3,393 |
|
|
40 |
|
|
4.75 |
|
|
3,007 |
|
|
36 |
|
|
4.81 |
|
Taxable
investment securities |
195,694 |
|
|
1,104 |
|
|
2.26 |
|
|
174,637 |
|
|
934 |
|
|
2.14 |
|
Nontaxable investment securities (1) |
1,588 |
|
|
5 |
|
|
1.15 |
|
|
— |
|
|
— |
|
|
— |
|
Restricted securities |
279 |
|
|
3 |
|
|
3.84 |
|
|
— |
|
|
— |
|
|
— |
|
Loans
receivable (1)(2)(3)(4) |
1,005,473 |
|
|
11,545 |
|
|
4.59 |
|
|
704,452 |
|
|
8,031 |
|
|
4.56 |
|
Accretion, net, of acquired loan discounts (5) |
|
|
358 |
|
|
0.14 |
|
|
|
|
833 |
|
|
0.47 |
|
Total
interest-earning assets |
1,324,025 |
|
|
13,307 |
|
|
4.02 |
|
|
929,240 |
|
|
9,888 |
|
|
4.26 |
|
Total
noninterest-earning assets |
137,189 |
|
|
|
|
|
|
98,710 |
|
|
|
|
|
Total
assets |
$ |
1,461,214 |
|
|
|
|
|
|
$ |
1,027,950 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
251,150 |
|
|
$ |
94 |
|
|
0.15 |
% |
|
$ |
181,581 |
|
|
$ |
55 |
|
|
0.12 |
% |
Bank
rewarded checking |
53,653 |
|
|
26 |
|
|
0.19 |
|
|
48,859 |
|
|
25 |
|
|
0.20 |
|
Savings
accounts |
62,718 |
|
|
6 |
|
|
0.04 |
|
|
52,907 |
|
|
4 |
|
|
0.03 |
|
Money
market deposit accounts |
259,470 |
|
|
195 |
|
|
0.30 |
|
|
142,777 |
|
|
89 |
|
|
0.25 |
|
Certificate of deposit accounts |
380,198 |
|
|
844 |
|
|
0.89 |
|
|
233,980 |
|
|
519 |
|
|
0.89 |
|
Total
interest-bearing deposits |
1,007,189 |
|
|
1,165 |
|
|
0.46 |
|
|
660,104 |
|
|
692 |
|
|
0.42 |
|
Borrowed
funds |
50,011 |
|
|
363 |
|
|
2.90 |
|
|
50,000 |
|
|
545 |
|
|
4.36 |
|
Floating
rate junior subordinated debt |
6,634 |
|
|
124 |
|
|
7.45 |
|
|
— |
|
|
— |
|
|
— |
|
Total
interest-bearing liabilities |
1,063,834 |
|
|
1,652 |
|
|
0.62 |
|
|
710,104 |
|
|
1,237 |
|
|
0.70 |
|
Noninterest-bearing deposits |
174,904 |
|
|
|
|
|
|
106,304 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
15,137 |
|
|
|
|
|
|
13,235 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
190,041 |
|
|
|
|
|
|
119,539 |
|
|
|
|
|
Total
liabilities |
1,253,875 |
|
|
|
|
|
|
829,643 |
|
|
|
|
|
Total
stockholders' equity |
207,339 |
|
|
|
|
|
|
198,307 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,461,214 |
|
|
|
|
|
|
$ |
1,027,950 |
|
|
|
|
|
Net interest income |
|
|
$ |
11,655 |
|
|
|
|
|
|
$ |
8,651 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
260,191 |
|
|
|
|
|
|
$ |
219,136 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.40 |
% |
|
|
|
|
|
3.56 |
% |
Net
interest margin (8) |
|
|
|
|
3.52 |
% |
|
|
|
|
|
3.72 |
% |
Net
interest margin, excluding the effects of purchase accounting
(9) |
|
|
|
|
3.41 |
% |
|
|
|
|
|
3.36 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
124.46 |
% |
|
|
|
|
|
130.86 |
% |
|
(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 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. |
(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, a non-GAAP measure, represents net interest income
excluding accretion and amortization of acquired loans receivable
as a percentage of average net interest earning assets excluding
loan accretable discounts in the amount of $2.2 million and $2.0
million for the quarters ended March 31, 2017 and
March 31, 2016, respectively. |
(10) Annualized. |
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands |
|
|
|
Fiscal Year to Date |
|
3/31/2017 |
|
3/31/2016 |
|
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 |
$ |
102,451 |
|
|
$ |
324 |
|
|
0.63 |
% |
|
$ |
35,192 |
|
|
$ |
66 |
|
|
0.38 |
% |
Certificates of deposit held at other financial institutions |
12,630 |
|
|
81 |
|
|
1.29 |
|
|
— |
|
|
— |
|
|
— |
|
FHLB
common stock and other equity securities |
3,377 |
|
|
80 |
|
|
4.71 |
|
|
3,043 |
|
|
75 |
|
|
4.93 |
|
Taxable
investment securities |
195,409 |
|
|
2,200 |
|
|
2.25 |
|
|
177,621 |
|
|
1,882 |
|
|
2.12 |
|
Nontaxable investment securities (1) |
1,593 |
|
|
9 |
|
|
1.15 |
|
|
— |
|
|
— |
|
|
— |
|
Restricted securities |
279 |
|
|
5 |
|
|
3.76 |
|
|
— |
|
|
— |
|
|
— |
|
Loans
receivable (1)(2)(3)(4) |
1,004,386 |
|
|
23,391 |
|
|
4.66 |
|
|
706,199 |
|
|
16,303 |
|
|
4.62 |
|
Accretion
and amortization of acquired loan discounts (5) |
|
|
1,082 |
|
|
0.21 |
|
|
|
|
2,002 |
|
|
0.57 |
|
Total
interest-earning assets |
1,320,125 |
|
|
27,172 |
|
|
4.12 |
|
|
922,055 |
|
|
20,328 |
|
|
4.41 |
|
Total
noninterest-earning assets |
135,883 |
|
|
|
|
|
|
96,564 |
|
|
|
|
|
Total
assets |
$ |
1,456,008 |
|
|
|
|
|
|
$ |
1,018,619 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
251,110 |
|
|
$ |
180 |
|
|
0.14 |
% |
|
$ |
179,548 |
|
|
$ |
110 |
|
|
0.12 |
% |
Bank
rewarded checking |
52,692 |
|
|
52 |
|
|
0.20 |
|
|
47,776 |
|
|
48 |
|
|
0.20 |
|
Savings
accounts |
62,434 |
|
|
12 |
|
|
0.04 |
|
|
51,642 |
|
|
8 |
|
|
0.03 |
|
Money
market deposit accounts |
257,379 |
|
|
389 |
|
|
0.30 |
|
|
136,800 |
|
|
165 |
|
|
0.24 |
|
Certificate of deposit accounts |
380,584 |
|
|
1,691 |
|
|
0.89 |
|
|
232,990 |
|
|
1,027 |
|
|
0.88 |
|
Total
interest-bearing deposits |
1,004,199 |
|
|
2,324 |
|
|
0.46 |
|
|
648,756 |
|
|
1,358 |
|
|
0.42 |
|
Borrowed
funds |
50,006 |
|
|
750 |
|
|
3.00 |
|
|
50,820 |
|
|
1,098 |
|
|
4.32 |
|
Floating
rate junior subordinated debt |
6,616 |
|
|
244 |
|
|
7.39 |
|
|
— |
|
|
— |
|
|
— |
|
Total
interest-bearing liabilities |
1,060,821 |
|
|
3,318 |
|
|
0.63 |
|
|
699,576 |
|
|
2,456 |
|
|
0.70 |
|
Noninterest-bearing deposits |
173,561 |
|
|
|
|
|
|
104,861 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
15,459 |
|
|
|
|
|
|
12,069 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
189,020 |
|
|
|
|
|
|
116,930 |
|
|
|
|
|
Total
liabilities |
1,249,841 |
|
|
|
|
|
|
816,506 |
|
|
|
|
|
Total
stockholders' equity |
206,167 |
|
|
|
|
|
|
202,113 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,456,008 |
|
|
|
|
|
|
$ |
1,018,619 |
|
|
|
|
|
Net interest income |
|
|
$ |
23,854 |
|
|
|
|
|
|
$ |
17,872 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
259,304 |
|
|
|
|
|
|
$ |
222,479 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.49 |
% |
|
|
|
|
|
3.71 |
% |
Net
interest margin (8) |
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.88 |
% |
Net
interest margin, excluding the effects of purchase accounting
(9) |
|
|
|
|
3.44 |
% |
|
|
|
|
|
3.43 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
124.44 |
% |
|
|
|
|
|
131.80 |
% |
|
(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 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. |
(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, a non-GAAP measure, represents net interest income
excluding accretion and amortization of acquired loans receivable
as a percentage of average net interest earning assets excluding
loan accretable discounts in the amount of $2.6 million and $2.5
million for the six months ended March 31, 2017 and
March 31, 2016, respectively. |
(10) Annualized. |
Charter Financial
CorporationReconciliation of Non-GAAP Measures
(unaudited)
Statements included in this press release
include non-GAAP financial measures and should be read along with
the accompanying tables, which provide a reconciliation of non-GAAP
financial measures to GAAP financial measures. Charter Financial
management uses non-GAAP financial measures, including loans
receivable income excluding accretion, net interest margin
excluding the effects of purchase accounting, and tangible book
value per share, in its analysis of the Company's performance.
Loans receivable income excluding accretion excludes the following
from loans receivable income: accretion from purchase discounts
related to acquired loans. Net interest margin excluding the
effects of purchase accounting excludes the following from net
interest margin: net purchase discount accretion and the average
balance of purchase discounts. Tangible book value per share
excludes the following from book value per share: the balance of
goodwill and other intangible assets.
Management believes that non-GAAP financial
measures provide additional useful information that allows readers
to evaluate the ongoing performance of the Company and provide
meaningful comparison to its peers. Non-GAAP financial measures
should not be considered as an alternative to any measure of
performance or financial condition as promulgated under GAAP, and
investors should consider the Company's performance and financial
condition as reported under GAAP and all other relevant information
when assessing the performance or financial condition of the
Company. Non-GAAP financial measures have limitations as analytical
tools, and investors should not consider them in isolation or as a
substitute for analysis of the results or financial condition as
reported under GAAP.
|
For the Quarters Ended |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
|
3/31/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
|
|
|
|
|
|
Loans
receivable income |
$ |
11,903,416 |
|
|
$ |
12,569,903 |
|
|
$ |
12,680,420 |
|
|
$ |
12,563,466 |
|
|
$ |
8,863,437 |
|
Net
purchase discount accretion |
358,031 |
|
|
724,109 |
|
|
1,090,886 |
|
|
1,278,040 |
|
|
833,179 |
|
Loans
receivable income excluding accretion (Non-GAAP) |
$ |
11,545,385 |
|
|
$ |
11,845,794 |
|
|
$ |
11,589,534 |
|
|
$ |
11,285,426 |
|
|
$ |
8,030,258 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
|
|
|
|
|
|
Net
Interest Margin |
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
3.97 |
% |
|
3.72 |
% |
Effect to
adjust for net purchase discount accretion |
(0.11 |
) |
|
(0.23 |
) |
|
(0.35 |
) |
|
(0.44 |
) |
|
(0.36 |
) |
Net
interest margin excluding the effects of purchase accounting
(Non-GAAP) |
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
3.53 |
% |
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
|
$ |
13.29 |
|
|
$ |
13.18 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.14 |
) |
|
(2.15 |
) |
|
(2.16 |
) |
|
(2.18 |
) |
|
(0.29 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.70 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
$ |
11.11 |
|
|
$ |
12.89 |
|
|
For the Six Months Ended |
|
3/31/2017 |
|
3/31/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
Loans
receivable income |
$ |
24,473,319 |
|
|
$ |
18,304,962 |
|
Net
purchase discount accretion |
1,082,140 |
|
|
2,002,161 |
|
Loans
receivable income excluding accretion (Non-GAAP) |
$ |
23,391,179 |
|
|
$ |
16,302,801 |
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
Net
Interest Margin |
3.61 |
% |
|
3.88 |
% |
Effect to
adjust for net purchase discount accretion |
(0.17 |
) |
|
(0.45 |
) |
Net
interest margin excluding the effects of purchase accounting
(Non-GAAP)
|
3.44 |
% |
|
3.43 |
% |
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
Book
value per share |
$ |
13.84 |
|
|
$ |
13.18 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.14 |
) |
|
(0.29 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.70 |
|
|
$ |
12.89 |
|
Robert L. Johnson, Chairman & CEO
Curt Kollar, CFO
706-645-1391
bjohnson@charterbank.net or
ckollar@charterbank.net
Dresner Corporate Services
Steve Carr
312-780-7211
scarr@dresnerco.com
Grafico Azioni Charter Financial Corp. (delisted) (NASDAQ:CHFN)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Charter Financial Corp. (delisted) (NASDAQ:CHFN)
Storico
Da Lug 2023 a Lug 2024