Charter Financial Corporation (the “Company”) (NASDAQ:CHFN) today
reported net income of $3.5 million for the quarter ended
June 30, 2017, or $0.24 and $0.23 per basic and
diluted share, respectively, compared with net income of $1.3
million, or $0.09 per basic and diluted share for
the quarter ended June 30, 2016.
Net income for the current-year quarter
increased $2.2 million over the prior-year quarter. A driving
factor was an increase of $305,000, or 9.8%, in deposit and
bankcard fees during the current-year quarter. The 2016 third
quarter included $3.5 million in merger costs from the acquisition
of CBS Financial Corporation ("CBS").
Net income for the nine months ended
June 30, 2017 was $11.9 million, or $0.83 and $0.78 per basic
and diluted share, respectively, compared with net income of $8.1
million, or $0.56 and $0.53 per basic and diluted share,
respectively, for the nine months ended June 30, 2016.
The Company's board of directors has declared an
increased quarterly cash dividend of $0.07 per share, the fourth
consecutive increase after a $0.05 per share dividend was announced
in the previous 14 quarters. The dividend is payable on August 24,
2017, to stockholders of record as of August 10, 2017.
On June 1, 2017, the Company announced its
merger agreement with Resurgens Bancorp ("Resurgens"), in which it
intends to acquire Resurgens and its wholly-owned subsidiary,
Resurgens Bank. The transaction is expected to close late in the
fourth quarter of fiscal 2017. The transaction is projected to
bring in $167.0 million of total assets, $135.0 million of gross
loans and $138.0 million of total deposits to the Company's books
upon closing.
"The Resurgens acquisition is another
progression in our long term shareholder value plan," said Chairman
and CEO Robert L. Johnson. "It is remarkable to reflect that we
entered the new century as a sleepy, small town mutual and now we
are fully stockholder owned, have broadened our base into thriving
markets, leveraged most of the excess capital generated in our
stock conversion and are now trading on earnings rather than book
value."
Quarterly Operating Results
Quarterly earnings for the third quarter of
fiscal 2017 compared with the third quarter of fiscal 2016 were
positively impacted by:
- An increase in deposit and bankcard fee income of $305,000, or
9.8%.
- A decrease in total noninterest expense of $4.0 million, or
26.3%, largely due to $3.5 million of merger costs associated with
the CBS acquisition in the prior-year quarter.
- Interest on interest-bearing deposits in other financial
institutions and taxable investment securities increased
$190,000 and $114,000, respectively. Interest-bearing
deposits saw a 57 basis point increase in yield, while the
Company's yield on taxable investment securities increased six
basis points.
- A decrease in interest expense on FHLB borrowings of $142,000,
or 30.3%, due to the Company renegotiating both of its existing
advances in May 2016 and March 2017.
Quarterly earnings for the third quarter of
fiscal 2017 compared with the third quarter of fiscal 2016 were
negatively impacted by:
- A decrease in loans receivable income of $287,000, or 2.3%, to
$12.3 million for the 2017 third quarter as compared to $12.6
million for the same period in 2016, driven entirely by a decline
of $1.1 million, or 86.5%, in accretion of acquired loan discounts.
Loans receivable income excluding accretion increased $818,000, or
7.2%, to $12.1 million during the quarter.
- An increase in interest expense on deposits of $205,000, or
21.0%, due to higher balances as well as an increase of four basis
points in the Company's cost of deposits.
- An increase in income tax expense of $1.5 million to $2.0
million for the current-year quarter, compared to $527,000 in the
prior-year period attributable to increased net income as well as a
higher effective tax rate.
"Our strong earnings continue to show the value
of our expansion into the North Atlanta market," Mr. Johnson
continued. "We had our best-ever quarter of deposit and bankcard
fees, and grew our loan portfolio as well as our loans receivable
income excluding purchase discount accretion. We believe we will be
able to continue this growth as we expand into the DeKalb County
market with the Resurgens merger."
Financial Condition
Total assets increased $41.7 million to $1.5
billion at June 30, 2017, from $1.4 billion at
September 30, 2016, largely attributable to a $28.3 million
increase in cash and cash equivalents. The increase in cash was
largely the result of increased deposits and sales and paydowns of
investment securities, offset in part by growth in loans. Net loans
grew $38.1 million, or 3.8%, to $1.0 billion at June 30, 2017,
from $994.1 million at September 30, 2016. Loans increased
$24.9 million during the current quarter.
Total deposits increased $32.4 million to $1.2
billion during the nine months ended June 30, 2017.
Transaction and certificate of deposit accounts increased $32.8
million and $4.1 million, respectively, while money market accounts
decreased $6.1 million from September 30, 2016.
From September 30, 2016 to June 30,
2017, total stockholders' equity increased $8.9 million to $212.1
million from $203.1 million due primarily to $11.9 million of net
income, partially offset by a $2.5 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 $14.03 while tangible book value per share increased
from $11.36 to $11.92, both due to the Company's retention of
earnings.
Net Interest Income and Net Interest
Margin
Net interest income decreased $95,000 to $12.0
million for the third quarter of fiscal 2017, compared with $12.1
million for the prior-year period. Total interest income declined
$7,000. The decrease was primarily attributable to a $287,000
decline in loans receivable income, which was the result of a $1.1
million decrease in accretion of acquired loan discounts. Loans
receivable income, excluding accretion of acquired loan discounts,
increased $818,000 to $12.1 million during the current quarter from
$11.3 million during the prior-year quarter. The Company also
experienced increases of $190,000 in interest on interest bearing
deposits in other financial institutions and $114,000 in interest
on taxable investment securities during the current-year quarter.
Total interest expense increased $88,000 to $1.6 million for the
current quarter, largely due to increased balances of
higher-costing deposits from CBS. These increases were offset in
part by a $142,000 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.
The Company's net interest margin, excluding the
effects of purchase accounting, increased to 3.55% for the quarter
ended June 30, 2017, from 3.53% for the quarter ended
June 30, 2016. Net interest margin was 3.60% for the third
quarter of fiscal 2017, compared to 3.97% for the third quarter of
fiscal 2016. The decrease was largely due to the aforementioned
significant decline in accretion income. Net interest margin was
also impacted negatively by the Company's higher balances in
lower-yielding Federal Reserve deposits and slightly higher
interest expense on its own deposits.
"We are seeing steady growth in our net interest
income and net interest margin excluding the effects of purchase
accounting," Mr. Johnson continued. "Accretion of purchase
discounts was high in the three quarters following the April 2016
closing of the Community Bank of the South deal from high volumes
of loan renewals, construction loan maturities and some payoffs.
The substantial decline of accretion income this quarter was nearly
offset by net interest income growth in our loan portfolio."
Net interest income for the nine months ended
June 30, 2017, increased $5.9 million, or 19.7%, to $35.8
million, compared to $30.0 million for the prior-year period.
Interest income increased $6.8 million to $40.8 million due to
increased loan balances as a result of the CBS acquisition early in
the third quarter of fiscal 2016, as well as a $447,000 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 $7.9
million, while net purchase discount accretion decreased $2.0
million.
The Company currently expects to realize
remaining loan discount accretion of $64,000 next quarter related
to its 2011 acquisition of the First National Bank of Florida under
purchase accounting rules. The Company has $1.8 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 provisions for loan losses
of $0 and $(900,000) in the three and nine month periods ended
June 30, 2017, respectively, due to the continued positive
credit quality trends of its loan portfolio and net recoveries of
previously charged-off loans. A provision of $(100,000) was
recorded in the three and nine month periods ended June 30,
2016, respectively.
Noninterest Income and
Expense
Noninterest income decreased $63,000 to $4.6
million in the fiscal 2017 third quarter from $4.7 million during
the fiscal 2016 third quarter. The decrease was primarily due to a
$259,000 gain on the settlement of life insurance during the
prior-year quarter, which was recognized in other noninterest
income, as well as a $59,000 decrease in gain on sale of loans due
to reduced activity. The current-year quarter included increases in
core components of $305,000 in bankcard fee and other deposit fee
income and $22,000 in brokerage commissions. Bankcard fees
increased $143,000, or 11.0%, compared to the prior-year period,
due mainly to the Company's marketing efforts for signature debit
card transactions.
Noninterest expense for the quarter ended
June 30, 2017, decreased $4.0 million to $11.1 million,
compared with $15.1 million for the prior-year quarter, due largely
to $3.5 million of merger costs from the CBS acquisition in the
prior-year quarter, which were largely concentrated in severance
costs, occupancy, data processing and legal and professional fees.
Other noninterest expense also fell $501,000 due largely to a
$325,000 write-down on assets available for sale during the
prior-year period. Net cost of operations of real estate owned
increased $94,000.
Noninterest income for the nine months ended
June 30, 2017, decreased $1.9 million to $14.2 million,
compared with $16.0 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 $835,000, gains on the sale of loans of
$507,000, gains on investment securities available for sale of
$199,000 and brokerage commissions of $124,000 during the
current-year period.
Noninterest expense for the nine months ended
June 30, 2017 decreased $1.9 million to $32.1 million compared
with $34.0 million for the prior-year period due to $4.0 million of
acquisition-related expenses during the nine months ended
June 30, 2016, as well as a $302,000 increase in the benefit
of operations of real estate owned due to large gains on sales
early in the Company's current fiscal year. These were partly
offset by increases in ongoing operational costs in salaries,
occupancy and data processing as a result of the CBS acquisition,
as well as a $163,000 increase in core deposit intangible expense,
also related to the CBS acquisition.
Asset Quality
Nonperforming assets at June 30, 2017 were
at 0.26% 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
586.83% of nonperforming loans at June 30, 2017, compared to
1.03% and 277.66%, respectively, at September 30, 2016. Not
included in the allowance is $1.8 million in yield and credit
discounts on the CBS-acquired loans. At June 30, 2017, the
allowance for loan losses was 1.22% of legacy loans, compared to
1.35% at September 30, 2016. The Company recorded net loan
recoveries of $296,000 and $1.3 million in its allowance for loan
losses for the three and nine months ended June 30,
2017, respectively, compared with net loan recoveries of $367,000
and $729,000 for the same periods in the prior year.
"Our historically conservative lending practices
gave us the flexibility to work through problem assets, both legacy
and acquired, during the recent economic downturn," Mr. Johnson
said. "As we've come out of it and seen economic improvement, our
loan portfolio quality, measured by our credit metrics, has
improved commensurately, demonstrating superior asset quality."
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.
No shares were repurchased during the second or third quarter.
Mr. Johnson concluded, “Our strong capital
position has again allowed us to seek out accretive growth
opportunities and improve our markets, this time with the planned
acquisition of Resurgens. We are very pleased to partner with their
team to continue our expansion into the Metro Atlanta market. We
are building long-term shareholder value through earnings growth
arising out of entry and growth in thriving markets on our I-85
driven geography and continued leverage of our capital and
operating infrastructure."
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,"
"building," 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 potential inability to consummate the acquisition of Resurgens;
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) |
|
|
June 30, 2017 |
|
September 30, 2016 (1) |
Assets |
Cash and amounts due
from depository institutions |
$ |
25,227,855 |
|
|
$ |
14,472,867 |
|
Interest-earning
deposits in other financial institutions |
94,916,159 |
|
|
77,376,632 |
|
Cash and
cash equivalents |
120,144,014 |
|
|
91,849,499 |
|
Loans held for sale,
fair value of $2,064,880 and $2,991,756 |
2,029,228 |
|
|
2,941,982 |
|
Certificates of deposit
held at other financial institutions |
7,767,710 |
|
|
14,496,410 |
|
Investment securities
available for sale |
187,654,517 |
|
|
206,336,287 |
|
Federal Home Loan Bank
stock |
3,484,600 |
|
|
3,361,800 |
|
Restricted securities,
at cost |
279,000 |
|
|
279,000 |
|
Loans receivable |
1,044,141,434 |
|
|
1,005,702,737 |
|
Unamortized loan
origination fees, net |
(1,233,347 |
) |
|
(1,278,830 |
) |
Allowance for loan
losses |
(10,800,257 |
) |
|
(10,371,416 |
) |
Loans
receivable, net |
1,032,107,830 |
|
|
994,052,491 |
|
Other real estate
owned |
1,937,613 |
|
|
2,706,461 |
|
Accrued interest and
dividends receivable |
3,574,445 |
|
|
3,442,051 |
|
Premises and equipment,
net |
28,363,881 |
|
|
28,078,591 |
|
Goodwill |
29,793,756 |
|
|
29,793,756 |
|
Other intangible
assets, net of amortization |
2,218,706 |
|
|
2,639,608 |
|
Cash surrender value of
life insurance |
50,153,948 |
|
|
49,268,973 |
|
Deferred income
taxes |
5,651,703 |
|
|
4,366,522 |
|
Other assets |
4,960,815 |
|
|
4,775,805 |
|
Total
assets |
$ |
1,480,121,766 |
|
|
$ |
1,438,389,236 |
|
Liabilities and Stockholders’
Equity |
Liabilities: |
|
|
|
Deposits |
$ |
1,194,253,739 |
|
|
$ |
1,161,843,586 |
|
Long-term
borrowings |
50,000,000 |
|
|
50,000,000 |
|
Floating
rate junior subordinated debt |
6,690,372 |
|
|
6,587,549 |
|
Advance
payments by borrowers for taxes and insurance |
2,392,561 |
|
|
2,298,513 |
|
Other
liabilities |
14,704,845 |
|
|
14,510,052 |
|
Total
liabilities |
1,268,041,517 |
|
|
1,235,239,700 |
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.01 par value; 15,112,432 shares issued and outstanding at
June 30, 2017 and 15,031,076 shares issued and outstanding at
September 30, 2016 |
151,124 |
|
|
150,311 |
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized at
June 30, 2017 and September 30, 2016 |
— |
|
|
— |
|
Additional paid-in capital |
85,339,406 |
|
|
83,651,623 |
|
Unearned
compensation – ESOP |
(4,673,761 |
) |
|
(5,106,169 |
) |
Retained
earnings |
132,654,363 |
|
|
123,349,890 |
|
Accumulated other comprehensive (loss) income |
(1,390,883 |
) |
|
1,103,881 |
|
Total
stockholders’ equity |
212,080,249 |
|
|
203,149,536 |
|
Total liabilities and stockholders’ equity |
$ |
1,480,121,766 |
|
|
$ |
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 June 30, |
|
Nine Months Ended June 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest income: |
|
|
|
|
|
|
|
Loans
receivable |
$ |
12,276,095 |
|
|
$ |
12,563,466 |
|
|
$ |
36,749,414 |
|
|
$ |
30,868,429 |
|
Taxable
investment securities |
1,036,572 |
|
|
922,435 |
|
|
3,236,212 |
|
|
2,803,482 |
|
Nontaxable investment securities |
4,571 |
|
|
6,702 |
|
|
13,714 |
|
|
6,702 |
|
Federal
Home Loan Bank stock |
39,913 |
|
|
38,416 |
|
|
119,432 |
|
|
113,493 |
|
Interest-earning deposits in other financial institutions |
235,928 |
|
|
46,374 |
|
|
560,055 |
|
|
112,812 |
|
Certificates of deposit held at other financial institutions |
30,953 |
|
|
54,452 |
|
|
112,357 |
|
|
54,452 |
|
Restricted securities |
2,855 |
|
|
2,503 |
|
|
8,107 |
|
|
2,503 |
|
Total
interest income |
13,626,887 |
|
|
13,634,348 |
|
|
40,799,291 |
|
|
33,961,873 |
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
1,182,649 |
|
|
977,520 |
|
|
3,506,425 |
|
|
2,335,171 |
|
Borrowings |
327,790 |
|
|
470,219 |
|
|
1,077,644 |
|
|
1,568,470 |
|
Floating
rate junior subordinated debt |
129,051 |
|
|
103,771 |
|
|
373,473 |
|
|
103,771 |
|
Total
interest expense |
1,639,490 |
|
|
1,551,510 |
|
|
4,957,542 |
|
|
4,007,412 |
|
Net interest income |
11,987,397 |
|
|
12,082,838 |
|
|
35,841,749 |
|
|
29,954,461 |
|
Provision
for loan losses |
— |
|
|
(100,000 |
) |
|
(900,000 |
) |
|
(100,000 |
) |
Net interest income after provision for loan losses |
11,987,397 |
|
|
12,182,838 |
|
|
36,741,749 |
|
|
30,054,461 |
|
Noninterest
income: |
|
|
|
|
|
|
|
Service
charges on deposit accounts |
1,972,205 |
|
|
1,810,166 |
|
|
5,560,729 |
|
|
5,182,869 |
|
Bankcard
fees |
1,443,151 |
|
|
1,299,988 |
|
|
4,092,195 |
|
|
3,634,995 |
|
Gain on
investment securities available for sale |
— |
|
|
12,920 |
|
|
247,780 |
|
|
48,885 |
|
Bank
owned life insurance |
305,709 |
|
|
327,304 |
|
|
884,976 |
|
|
892,828 |
|
Gain on
sale of loans |
542,762 |
|
|
602,178 |
|
|
1,816,848 |
|
|
1,309,784 |
|
Brokerage
commissions |
185,674 |
|
|
163,912 |
|
|
576,237 |
|
|
452,057 |
|
Recoveries on acquired loans previously covered under FDIC loss
share agreements |
— |
|
|
— |
|
|
250,000 |
|
|
3,625,000 |
|
Other |
189,996 |
|
|
486,462 |
|
|
739,733 |
|
|
899,955 |
|
Total
noninterest income |
4,639,497 |
|
|
4,702,930 |
|
|
14,168,498 |
|
|
16,046,373 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
6,530,408 |
|
|
8,470,498 |
|
|
18,742,656 |
|
|
19,020,827 |
|
Occupancy |
1,156,618 |
|
|
1,534,222 |
|
|
3,699,807 |
|
|
3,741,652 |
|
Data
processing |
1,091,208 |
|
|
1,654,015 |
|
|
3,004,137 |
|
|
3,523,867 |
|
Legal and
professional |
384,240 |
|
|
793,489 |
|
|
1,055,985 |
|
|
1,851,892 |
|
Marketing |
383,890 |
|
|
500,377 |
|
|
1,152,357 |
|
|
1,169,040 |
|
Federal
insurance premiums and other regulatory fees |
198,350 |
|
|
185,333 |
|
|
561,106 |
|
|
619,213 |
|
Net cost
(benefit) of operations of real estate owned |
18,079 |
|
|
(75,897 |
) |
|
(327,365 |
) |
|
(25,732 |
) |
Furniture
and equipment |
202,259 |
|
|
301,137 |
|
|
604,696 |
|
|
630,859 |
|
Postage,
office supplies and printing |
224,073 |
|
|
236,704 |
|
|
717,775 |
|
|
592,086 |
|
Core
deposit intangible amortization expense |
117,806 |
|
|
172,706 |
|
|
420,902 |
|
|
257,845 |
|
Other |
790,204 |
|
|
1,291,259 |
|
|
2,504,298 |
|
|
2,663,095 |
|
Total
noninterest expenses |
11,097,135 |
|
|
15,063,843 |
|
|
32,136,354 |
|
|
34,044,644 |
|
Income
before income taxes |
5,529,759 |
|
|
1,821,925 |
|
|
18,773,893 |
|
|
12,056,190 |
|
Income
tax expense |
2,015,909 |
|
|
526,690 |
|
|
6,897,581 |
|
|
4,003,588 |
|
Net income |
$ |
3,513,850 |
|
|
$ |
1,295,235 |
|
|
$ |
11,876,312 |
|
|
$ |
8,052,602 |
|
Basic net income per
share |
$ |
0.24 |
|
|
$ |
0.09 |
|
|
$ |
0.83 |
|
|
$ |
0.56 |
|
Diluted net income per
share |
$ |
0.23 |
|
|
$ |
0.09 |
|
|
$ |
0.78 |
|
|
$ |
0.53 |
|
Weighted average number
of common shares outstanding |
14,353,082 |
|
|
14,184,675 |
|
|
14,293,859 |
|
|
14,433,345 |
|
Weighted average number
of common and potential common shares outstanding |
15,256,623 |
|
|
14,841,814 |
|
|
15,197,400 |
|
|
15,090,484 |
|
|
Charter Financial
CorporationSupplemental Financial Data
(unaudited)in thousands except per share data |
|
|
Quarter to Date |
|
|
Year to Date |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 (1) |
|
6/30/2016 |
|
|
6/30/2017 |
|
6/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
balance sheet data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,480,122 |
|
|
$ |
1,484,796 |
|
|
$ |
1,461,667 |
|
|
$ |
1,438,389 |
|
|
$ |
1,427,851 |
|
|
|
$ |
1,480,122 |
|
|
$ |
1,427,851 |
|
Cash and cash
equivalents |
120,144 |
|
|
140,285 |
|
|
131,849 |
|
|
91,849 |
|
|
106,108 |
|
|
|
120,144 |
|
|
106,108 |
|
Loans receivable,
net |
1,032,108 |
|
|
1,007,552 |
|
|
990,635 |
|
|
994,052 |
|
|
993,786 |
|
|
|
1,032,108 |
|
|
993,786 |
|
Other real estate
owned |
1,938 |
|
|
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
3,181 |
|
|
|
1,938 |
|
|
3,181 |
|
Securities available
for sale |
187,655 |
|
|
191,483 |
|
|
196,279 |
|
|
206,336 |
|
|
169,737 |
|
|
|
187,655 |
|
|
169,737 |
|
Transaction
accounts |
510,810 |
|
|
513,294 |
|
|
481,841 |
|
|
478,028 |
|
|
472,123 |
|
|
|
510,810 |
|
|
472,123 |
|
Total deposits |
1,194,254 |
|
|
1,201,731 |
|
|
1,186,347 |
|
|
1,161,844 |
|
|
1,155,245 |
|
|
|
1,194,254 |
|
|
1,155,245 |
|
Borrowings |
56,690 |
|
|
56,656 |
|
|
56,622 |
|
|
56,588 |
|
|
56,553 |
|
|
|
56,690 |
|
|
56,553 |
|
Total stockholders’
equity |
212,080 |
|
|
208,413 |
|
|
205,500 |
|
|
203,150 |
|
|
199,800 |
|
|
|
212,080 |
|
|
199,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
earnings summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
13,626 |
|
|
$ |
13,307 |
|
|
$ |
13,866 |
|
|
$ |
13,822 |
|
|
$ |
13,635 |
|
|
|
$ |
40,799 |
|
|
$ |
33,962 |
|
Interest expense |
1,639 |
|
|
1,652 |
|
|
1,666 |
|
|
1,622 |
|
|
1,552 |
|
|
|
4,957 |
|
|
4,008 |
|
Net
interest income |
11,987 |
|
|
11,655 |
|
|
12,200 |
|
|
12,200 |
|
|
12,083 |
|
|
|
35,842 |
|
|
29,954 |
|
Provision for loan
losses |
— |
|
|
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
(100 |
) |
|
|
(900 |
) |
|
(100 |
) |
Net
interest income after provision for loan losses |
11,987 |
|
|
11,805 |
|
|
12,950 |
|
|
12,350 |
|
|
12,183 |
|
|
|
36,742 |
|
|
30,054 |
|
Noninterest income |
4,639 |
|
|
4,546 |
|
|
4,983 |
|
|
4,918 |
|
|
4,703 |
|
|
|
14,168 |
|
|
16,046 |
|
Noninterest
expense |
11,096 |
|
|
10,750 |
|
|
10,290 |
|
|
11,354 |
|
|
15,064 |
|
|
|
32,136 |
|
|
34,043 |
|
Income tax expense |
2,016 |
|
|
2,284 |
|
|
2,597 |
|
|
2,103 |
|
|
527 |
|
|
|
6,898 |
|
|
4,004 |
|
Net
income |
$ |
3,514 |
|
|
$ |
3,317 |
|
|
$ |
5,046 |
|
|
$ |
3,811 |
|
|
$ |
1,295 |
|
|
|
$ |
11,876 |
|
|
$ |
8,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
$ |
0.09 |
|
|
|
$ |
0.83 |
|
|
$ |
0.56 |
|
Earnings per share –
fully diluted |
$ |
0.23 |
|
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
0.09 |
|
|
|
$ |
0.78 |
|
|
$ |
0.53 |
|
Cash dividends per
share |
$ |
0.065 |
|
|
$ |
0.060 |
|
|
$ |
0.055 |
|
|
$ |
0.050 |
|
|
$ |
0.050 |
|
|
|
$ |
0.180 |
|
|
$ |
0.150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
14,353 |
|
|
14,322 |
|
|
14,207 |
|
|
14,186 |
|
|
14,185 |
|
|
|
14,294 |
|
|
14,433 |
|
Weighted average
diluted shares |
15,257 |
|
|
15,340 |
|
|
15,065 |
|
|
14,798 |
|
|
14,842 |
|
|
|
15,197 |
|
|
15,090 |
|
Total shares
outstanding |
15,112 |
|
|
15,061 |
|
|
15,031 |
|
|
15,031 |
|
|
15,031 |
|
|
|
15,112 |
|
|
15,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
14.03 |
|
|
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
|
$ |
13.29 |
|
|
|
$ |
14.03 |
|
|
$ |
13.29 |
|
Tangible book value per
share (2) |
$ |
11.92 |
|
|
$ |
11.70 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
$ |
11.11 |
|
|
|
$ |
11.92 |
|
|
$ |
11.11 |
|
__________________________________ |
(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 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
|
|
6/30/2017 |
|
6/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4
family residential real estate |
$ |
222,904 |
|
|
$ |
223,216 |
|
|
$ |
223,609 |
|
|
$ |
236,940 |
|
|
$ |
234,346 |
|
|
|
$ |
222,904 |
|
|
$ |
234,346 |
|
Commercial real estate |
624,926 |
|
|
608,206 |
|
|
595,207 |
|
|
595,157 |
|
|
586,082 |
|
|
|
624,926 |
|
|
586,082 |
|
Commercial |
79,695 |
|
|
73,119 |
|
|
73,182 |
|
|
71,865 |
|
|
64,700 |
|
|
|
79,695 |
|
|
64,700 |
|
Real
estate construction |
75,941 |
|
|
77,332 |
|
|
79,136 |
|
|
80,500 |
|
|
104,389 |
|
|
|
75,941 |
|
|
104,389 |
|
Consumer
and other |
40,675 |
|
|
37,300 |
|
|
31,212 |
|
|
21,241 |
|
|
15,638 |
|
|
|
40,675 |
|
|
15,638 |
|
Total
loans receivable |
$ |
1,044,141 |
|
|
$ |
1,019,173 |
|
|
$ |
1,002,346 |
|
|
$ |
1,005,703 |
|
|
$ |
1,005,155 |
|
|
|
$ |
1,044,141 |
|
|
$ |
1,005,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
10,505 |
|
|
$ |
10,499 |
|
|
$ |
10,371 |
|
|
$ |
10,118 |
|
|
$ |
9,850 |
|
|
|
$ |
10,371 |
|
|
$ |
9,489 |
|
Charge-offs |
(73 |
) |
|
(103 |
) |
|
(50 |
) |
|
(1 |
) |
|
(7 |
) |
|
|
(226 |
) |
|
(227 |
) |
Recoveries |
368 |
|
|
259 |
|
|
928 |
|
|
404 |
|
|
375 |
|
|
|
1,555 |
|
|
956 |
|
Provision |
— |
|
|
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
(100 |
) |
|
|
(900 |
) |
|
(100 |
) |
Balance
at end of period |
$ |
10,800 |
|
|
$ |
10,505 |
|
|
$ |
10,499 |
|
|
$ |
10,371 |
|
|
$ |
10,118 |
|
|
|
$ |
10,800 |
|
|
$ |
10,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,549 |
|
|
$ |
1,610 |
|
|
$ |
1,527 |
|
|
$ |
3,735 |
|
|
$ |
3,371 |
|
|
|
$ |
1,549 |
|
|
$ |
3,371 |
|
Loans
delinquent 90 days or greater and still accruing |
291 |
|
|
— |
|
|
238 |
|
|
— |
|
|
— |
|
|
|
291 |
|
|
— |
|
Total
nonperforming loans |
1,840 |
|
|
1,610 |
|
|
1,765 |
|
|
3,735 |
|
|
3,371 |
|
|
|
1,840 |
|
|
3,371 |
|
Other
real estate owned |
1,938 |
|
|
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
3,181 |
|
|
|
1,938 |
|
|
3,181 |
|
Total
nonperforming assets |
$ |
3,778 |
|
|
$ |
3,567 |
|
|
$ |
3,926 |
|
|
$ |
6,441 |
|
|
$ |
6,552 |
|
|
|
$ |
3,778 |
|
|
$ |
6,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled
debt restructurings - accruing |
$ |
5,007 |
|
|
$ |
5,073 |
|
|
$ |
4,761 |
|
|
$ |
4,585 |
|
|
$ |
4,999 |
|
|
|
$ |
5,007 |
|
|
$ |
4,999 |
|
Troubled
debt restructurings - nonaccrual |
107 |
|
|
137 |
|
|
192 |
|
|
1,760 |
|
|
1,716 |
|
|
|
107 |
|
|
1,716 |
|
Total
troubled debt restructurings |
$ |
5,114 |
|
|
$ |
5,210 |
|
|
$ |
4,953 |
|
|
$ |
6,345 |
|
|
$ |
6,715 |
|
|
|
$ |
5,114 |
|
|
$ |
6,715 |
|
__________________________________ |
(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 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
|
|
6/30/2017 |
|
6/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(annualized) |
6.65 |
% |
|
6.40 |
% |
|
9.84 |
% |
|
7.55 |
% |
|
2.61 |
% |
|
|
7.62 |
% |
|
5.34 |
% |
Return on assets
(annualized) |
0.96 |
% |
|
0.91 |
% |
|
1.39 |
% |
|
1.07 |
% |
|
0.38 |
% |
|
|
1.08 |
% |
|
0.95 |
% |
Net interest margin
(annualized) |
3.60 |
% |
|
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
3.97 |
% |
|
|
3.61 |
% |
|
3.91 |
% |
Net interest margin,
excluding the effects of purchase accounting (1) |
3.55 |
% |
|
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
3.53 |
% |
|
|
3.48 |
% |
|
3.47 |
% |
Holding company tier 1
leverage ratio (2) |
13.08 |
% |
|
12.92 |
% |
|
12.83 |
% |
|
12.68 |
% |
|
12.60 |
% |
|
|
13.08 |
% |
|
12.60 |
% |
Holding company total
risk-based capital ratio (2) |
17.98 |
% |
|
17.93 |
% |
|
17.38 |
% |
|
16.74 |
% |
|
15.93 |
% |
|
|
17.98 |
% |
|
15.93 |
% |
Bank tier 1 leverage
ratio (2) (3) |
12.06 |
% |
|
11.84 |
% |
|
11.70 |
% |
|
11.51 |
% |
|
11.32 |
% |
|
|
12.06 |
% |
|
11.32 |
% |
Bank total risk-based
capital ratio (2) |
16.67 |
% |
|
16.53 |
% |
|
15.91 |
% |
|
15.26 |
% |
|
14.99 |
% |
|
|
16.67 |
% |
|
14.99 |
% |
Effective tax rate |
36.46 |
% |
|
40.78 |
% |
|
33.98 |
% |
|
35.56 |
% |
|
28.91 |
% |
|
|
36.74 |
% |
|
33.21 |
% |
Yield on loans |
4.79 |
% |
|
4.74 |
% |
|
5.01 |
% |
|
5.07 |
% |
|
5.20 |
% |
|
|
4.84 |
% |
|
5.19 |
% |
Cost of deposits |
0.47 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.43 |
% |
|
|
0.47 |
% |
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios:
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a % of total loans (5) |
1.04 |
% |
|
1.04 |
% |
|
1.05 |
% |
|
1.03 |
% |
|
1.00 |
% |
|
|
1.04 |
% |
|
1.00 |
% |
Allowance
for loan losses as a % of nonperforming loans |
586.83 |
% |
|
652.47 |
% |
|
594.81 |
% |
|
277.66 |
% |
|
300.10 |
% |
|
|
586.83 |
% |
|
300.10 |
% |
Nonperforming assets as a % of total loans and OREO |
0.36 |
% |
|
0.35 |
% |
|
0.39 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
|
0.36 |
% |
|
0.65 |
% |
Nonperforming assets as a % of total assets |
0.26 |
% |
|
0.24 |
% |
|
0.27 |
% |
|
0.45 |
% |
|
0.46 |
% |
|
|
0.26 |
% |
|
0.46 |
% |
Net
charge-offs (recoveries) as a % of average loans (annualized) |
(0.12 |
)% |
|
(0.06 |
)% |
|
(0.35 |
)% |
|
(0.16 |
)% |
|
(0.15 |
)% |
|
|
(0.17 |
)% |
|
(0.12 |
)% |
__________________________________ |
(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
$2.0 million, $2.2 million, $2.9 million, $3.8 million, and $4.7
million for the quarters ended June 30, 2017, March 31,
2017, December 31, 2016, September 30, 2016, and
June 30, 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 June 30, 2017, March 31, 2017,
December 31, 2016, September 30, 2016, and June 30,
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) |
Excluding
former CBS loans totaling $154.0 million, $166.5 million, $191.9
million, $236.4 million and $264.7 million at June 30, 2017,
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 1.22%,
1.24%, 1.30%, 1.35% and 1.37% of all other loans at June 30,
2017, 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 |
|
6/30/2017 |
|
6/30/2016 |
|
AverageBalance |
|
Interest |
|
AverageYield/Cost (10) |
|
AverageBalance |
|
Interest |
|
AverageYield/Cost (10) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits in other financial institutions |
$ |
102,944 |
|
|
$ |
236 |
|
|
0.92 |
% |
|
$ |
54,423 |
|
|
$ |
47 |
|
|
0.35 |
% |
Certificates of deposit held at other financial institutions |
9,021 |
|
|
31 |
|
|
1.37 |
|
|
19,404 |
|
|
54 |
|
|
1.12 |
|
FHLB
common stock and other equity securities |
3,485 |
|
|
40 |
|
|
4.58 |
|
|
3,442 |
|
|
38 |
|
|
4.46 |
|
Taxable
investment securities |
188,138 |
|
|
1,037 |
|
|
2.20 |
|
|
172,065 |
|
|
922 |
|
|
2.14 |
|
Nontaxable investment securities (1) |
1,579 |
|
|
5 |
|
|
1.16 |
|
|
2,409 |
|
|
7 |
|
|
1.11 |
|
Restricted securities |
279 |
|
|
3 |
|
|
4.09 |
|
|
236 |
|
|
3 |
|
|
4.24 |
|
Loans
receivable (1)(2)(3)(4) |
1,025,454 |
|
|
12,103 |
|
|
4.72 |
|
|
966,375 |
|
|
11,285 |
|
|
4.67 |
|
Accretion, net, of acquired loan discounts (5) |
|
|
173 |
|
|
0.07 |
|
|
|
|
1,278 |
|
|
0.53 |
|
Total
interest-earning assets |
1,330,900 |
|
|
13,628 |
|
|
4.10 |
|
|
1,218,354 |
|
|
13,634 |
|
|
4.48 |
|
Total
noninterest-earning assets |
139,050 |
|
|
|
|
|
|
145,454 |
|
|
|
|
|
Total
assets |
$ |
1,469,950 |
|
|
|
|
|
|
$ |
1,363,808 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
254,983 |
|
|
$ |
104 |
|
|
0.16 |
% |
|
$ |
229,650 |
|
|
$ |
72 |
|
|
0.12 |
% |
Bank
rewarded checking |
54,845 |
|
|
27 |
|
|
0.20 |
|
|
50,188 |
|
|
25 |
|
|
0.20 |
|
Savings
accounts |
65,036 |
|
|
6 |
|
|
0.04 |
|
|
61,364 |
|
|
9 |
|
|
0.06 |
|
Money
market deposit accounts |
240,561 |
|
|
178 |
|
|
0.30 |
|
|
228,316 |
|
|
178 |
|
|
0.31 |
|
Certificate of deposit accounts |
381,863 |
|
|
868 |
|
|
0.91 |
|
|
349,773 |
|
|
694 |
|
|
0.79 |
|
Total
interest-bearing deposits |
997,288 |
|
|
1,183 |
|
|
0.47 |
|
|
919,291 |
|
|
978 |
|
|
0.43 |
|
Borrowed
funds |
50,000 |
|
|
328 |
|
|
2.62 |
|
|
53,101 |
|
|
470 |
|
|
3.54 |
|
Floating
rate junior subordinated debt |
6,668 |
|
|
129 |
|
|
7.74 |
|
|
5,516 |
|
|
104 |
|
|
7.53 |
|
Total
interest-bearing liabilities |
1,053,956 |
|
|
1,640 |
|
|
0.62 |
|
|
977,908 |
|
|
1,552 |
|
|
0.63 |
|
Noninterest-bearing deposits |
187,354 |
|
|
|
|
|
|
171,913 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
17,345 |
|
|
|
|
|
|
15,390 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
204,699 |
|
|
|
|
|
|
187,303 |
|
|
|
|
|
Total liabilities |
1,258,655 |
|
|
|
|
|
|
1,165,211 |
|
|
|
|
|
Total stockholders' equity |
211,295 |
|
|
|
|
|
|
198,597 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,469,950 |
|
|
|
|
|
|
$ |
1,363,808 |
|
|
|
|
|
Net interest income |
|
|
$ |
11,988 |
|
|
|
|
|
|
$ |
12,082 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
276,944 |
|
|
|
|
|
|
$ |
240,446 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.84 |
% |
Net
interest margin (8) |
|
|
|
|
3.60 |
% |
|
|
|
|
|
3.97 |
% |
Net
interest margin, excluding the effects of purchase accounting
(9) |
|
|
|
|
3.55 |
% |
|
|
|
|
|
3.53 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
126.28 |
% |
|
|
|
|
|
124.59 |
% |
__________________________________ |
(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. |
(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 $2.0 million and $4.7 million for the
quarters ended June 30, 2017 and June 30, 2016,
respectively. |
(10) |
Annualized. |
|
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands |
|
|
Fiscal Year to Date |
|
6/30/2017 |
|
6/30/2016 |
|
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 |
$ |
102,615 |
|
|
$ |
560 |
|
|
0.73 |
% |
|
$ |
41,580 |
|
|
$ |
113 |
|
|
0.36 |
% |
Certificates of deposit held at other financial institutions |
11,427 |
|
|
112 |
|
|
1.31 |
|
|
6,444 |
|
|
54 |
|
|
1.13 |
|
FHLB
common stock and other equity securities |
3,413 |
|
|
119 |
|
|
4.67 |
|
|
3,175 |
|
|
113 |
|
|
4.77 |
|
Taxable
investment securities |
192,986 |
|
|
3,236 |
|
|
2.24 |
|
|
175,776 |
|
|
2,803 |
|
|
2.13 |
|
Nontaxable investment securities (1) |
1,588 |
|
|
14 |
|
|
1.15 |
|
|
800 |
|
|
7 |
|
|
1.12 |
|
Restricted securities |
279 |
|
|
8 |
|
|
3.87 |
|
|
78 |
|
|
3 |
|
|
4.28 |
|
Loans
receivable (1)(2)(3)(4) |
1,011,408 |
|
|
35,495 |
|
|
4.68 |
|
|
792,607 |
|
|
27,588 |
|
|
4.64 |
|
Accretion
and amortization of acquired loan discounts (5) |
|
|
1,255 |
|
|
0.17 |
|
|
|
|
3,280 |
|
|
0.55 |
|
Total
interest-earning assets |
1,323,716 |
|
|
40,799 |
|
|
4.11 |
|
|
1,020,460 |
|
|
33,961 |
|
|
4.44 |
|
Total
noninterest-earning assets |
136,939 |
|
|
|
|
|
|
112,802 |
|
|
|
|
|
Total
assets |
$ |
1,460,655 |
|
|
|
|
|
|
$ |
1,133,262 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
252,401 |
|
|
$ |
283 |
|
|
0.15 |
% |
|
$ |
196,187 |
|
|
$ |
182 |
|
|
0.12 |
% |
Bank
rewarded checking |
53,409 |
|
|
78 |
|
|
0.19 |
|
|
48,577 |
|
|
73 |
|
|
0.20 |
|
Savings
accounts |
63,302 |
|
|
19 |
|
|
0.04 |
|
|
54,871 |
|
|
16 |
|
|
0.04 |
|
Money
market deposit accounts |
251,773 |
|
|
567 |
|
|
0.30 |
|
|
167,194 |
|
|
342 |
|
|
0.27 |
|
Certificate of deposit accounts |
381,010 |
|
|
2,559 |
|
|
0.90 |
|
|
271,776 |
|
|
1,722 |
|
|
0.84 |
|
Total
interest-bearing deposits |
1,001,895 |
|
|
3,506 |
|
|
0.47 |
|
|
738,605 |
|
|
2,335 |
|
|
0.42 |
|
Borrowed
funds |
50,004 |
|
|
1,078 |
|
|
2.87 |
|
|
51,577 |
|
|
1,568 |
|
|
4.05 |
|
Floating
rate junior subordinated debt |
6,634 |
|
|
373 |
|
|
7.51 |
|
|
1,833 |
|
|
104 |
|
|
7.55 |
|
Total
interest-bearing liabilities |
1,058,533 |
|
|
4,957 |
|
|
0.62 |
|
|
792,015 |
|
|
4,007 |
|
|
0.67 |
|
Noninterest-bearing deposits |
178,159 |
|
|
|
|
|
|
127,130 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
16,087 |
|
|
|
|
|
|
13,172 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
194,246 |
|
|
|
|
|
|
140,302 |
|
|
|
|
|
Total
liabilities |
1,252,779 |
|
|
|
|
|
|
932,317 |
|
|
|
|
|
Total
stockholders' equity |
207,876 |
|
|
|
|
|
|
200,945 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,460,655 |
|
|
|
|
|
|
$ |
1,133,262 |
|
|
|
|
|
Net interest income |
|
|
$ |
35,842 |
|
|
|
|
|
|
$ |
29,954 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
265,183 |
|
|
|
|
|
|
$ |
228,445 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.49 |
% |
|
|
|
|
|
3.77 |
% |
Net
interest margin (8) |
|
|
|
|
3.61 |
% |
|
|
|
|
|
3.91 |
% |
Net
interest margin, excluding the effects of purchase accounting
(9) |
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.47 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
125.05 |
% |
|
|
|
|
|
128.84 |
% |
__________________________________ |
(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. |
(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 $2.4 million and $3.2 million for the
nine months ended June 30, 2017 and June 30, 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 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
6/30/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
|
|
|
|
|
|
Loans
receivable income |
$ |
12,276,095 |
|
|
$ |
11,903,416 |
|
|
$ |
12,569,903 |
|
|
$ |
12,680,420 |
|
|
$ |
12,563,466 |
|
Net
purchase discount accretion |
173,014 |
|
|
358,031 |
|
|
724,109 |
|
|
1,090,886 |
|
|
1,278,040 |
|
Loans
receivable income excluding accretion (Non-GAAP) |
$ |
12,103,081 |
|
|
$ |
11,545,385 |
|
|
$ |
11,845,794 |
|
|
$ |
11,589,534 |
|
|
$ |
11,285,426 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
|
|
|
|
|
|
Net
Interest Margin |
3.60 |
% |
|
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
3.97 |
% |
Effect to
adjust for net purchase discount accretion |
(0.05 |
) |
|
(0.11 |
) |
|
(0.23 |
) |
|
(0.35 |
) |
|
(0.44 |
) |
Net
interest margin excluding the effects of purchase accounting
(Non-GAAP) |
3.55 |
% |
|
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
14.03 |
|
|
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
|
$ |
13.29 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.11 |
) |
|
(2.14 |
) |
|
(2.15 |
) |
|
(2.16 |
) |
|
(2.18 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.92 |
|
|
$ |
11.7 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
$ |
11.11 |
|
|
For the Six Months Ended |
|
6/30/2017 |
|
6/30/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
Loans
receivable income |
$ |
36,749,414 |
|
|
$ |
30,868,429 |
|
Net
purchase discount accretion |
1,255,154 |
|
|
3,280,201 |
|
Loans
receivable income excluding accretion (Non-GAAP) |
$ |
35,494,260 |
|
|
$ |
27,588,228 |
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
Net
Interest Margin |
3.61 |
% |
|
3.91 |
% |
Effect to
adjust for net purchase discount accretion |
(0.13 |
) |
|
(0.44 |
) |
Net
interest margin excluding the effects of purchase accounting
(Non-GAAP) |
3.48 |
% |
|
3.47 |
% |
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
Book
value per share |
$ |
14.03 |
|
|
$ |
13.29 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.11 |
) |
|
(2.18 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.92 |
|
|
$ |
11.11 |
|
Contact:
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