Charter Financial Corporation (the “Company”) (NASDAQ:CHFN) today
reported net income of $2.6 million for the quarter ended
September 30, 2017, or $0.18 and $0.17 per basic and
diluted share, respectively, compared with net income of $3.8
million, or $0.27 and $0.26 per basic and diluted share,
respectively, for
the quarter ended September 30, 2016.
Additionally, as announced on September 1, 2017,
the Company completed its acquisition of Resurgens Bancorp
("Resurgens") during the quarter ended September 30, 2017, the
next phase in its Atlanta Metro expansion strategy. The transaction
brought in $128.8 million of loans, $138.0 million of deposits and
$177.5 million of total assets to the Company's balance sheet for
cash proceeds of $25.8 million.
"We are excited to officially be in business
with the former Resurgens team in DeKalb County," said Chairman and
CEO Robert L. Johnson. "This move continues our strategic expansion
into the Atlanta area. Our first month together has gone smoothly
and we look forward to continuing our expansion into Atlanta with
this talented group, as we feel Resurgens was one of the most
attractive banks available in that region. Charter has grown from
four branches in the Atlanta Metro area two years ago to 11 after
our acquisitions and Buckhead branch opening. The MSA now accounts
for 56.0% and 52.8% of our loan and deposit portfolios,
respectively."
Net income for the current-year quarter
decreased $1.3 million from the prior-year quarter. The difference
was attributable to $1.9 million of merger-related costs from the
Resurgens acquisition, primarily in data processing, offset in part
by $903,000 of growth in loans receivable income. Additional
merger-related costs are expected to be incurred in fiscal 2018 as
the full conversion of Resurgens is not expected to be completed
until February 2018.
Net income for the twelve months ended
September 30, 2017 was $14.4 million, or $1.01 and $0.95 per
basic and diluted share, respectively, compared with net income of
$11.9 million, or $0.83 and $0.79 per basic and diluted share,
respectively, for the twelve months ended September 30,
2016.
Quarterly Operating Results
Quarterly earnings for the fourth quarter of
fiscal 2017 compared with the fourth quarter of fiscal 2016 were
positively impacted by:
- An increase in loans receivable income of $903,000, or 7.1%, to
$13.6 million for the 2017 fourth quarter, compared with $12.7
million for the same quarter in 2016.
- An increase in deposit and bankcard fee income of $319,000, or
10.0%.
- Interest on interest-bearing deposits in other financial
institutions increased $230,000.
- One-time items including recoveries on loans formerly covered
by loss-sharing agreements of $163,000, recoveries of former
nonaccrual interest of $169,000 and additional loan accretion due
to payoffs of $193,000.
Quarterly earnings for the fourth quarter of
fiscal 2017 compared with the fourth quarter of fiscal 2016 were
negatively impacted by:
- Nonrecurring deal costs from the Resurgens acquisition of $1.9
million, largely concentrated in data processing, legal and
professional fees, and severance costs. Deal costs of $124,000
related to the acquisition of CBS Financial Corporation ("CBS")
were recorded in the same period in 2016.
- An increase in interest expense on deposits of $169,000, or
15.1%, due to higher balances as well as an increase of four basis
points in the Company's cost of deposits due to higher-costing
deposits from Resurgens assumed in September 2017, adding to our
already increased legacy deposit rates.
Financial Condition
Total assets increased $201.8 million to $1.6
billion at September 30, 2017, from $1.4 billion at
September 30, 2016, attributable to the $177.5 million of
total assets acquired in the purchase of Resurgens. Net loans grew
$155.2 million, or 15.6%, to $1.1 billion at September 30,
2017, from $994.1 million at September 30, 2016, also
primarily as a result of the Resurgens acquisition, which brought
in $128.8 million of loans.
"Over the past two years we have grown total
assets by 60%, through acquisitions and organic growth," Mr.
Johnson said. "As our loan portfolio has expanded we've also been
able to modify our loan mix, to an extent, as we've seen expansion
in our commercial and industrial portfolio, particularly in our new
markets. We will continue to seek out the most attractive options
with the proper risk profile to provide the returns we want for our
shareholders."
Total deposits increased $177.3 million to $1.3
billion during the twelve months ended September 30, 2017 as a
result of the Resurgens acquisition as well as strong legacy
deposit growth in the first two quarters of the current year.
Transaction and certificate of deposit accounts increased $89.2
million and $49.2 million, respectively, from September 30,
2016.
From September 30, 2016 to
September 30, 2017, total stockholders' equity increased $11.0
million to $214.2 million from $203.1 million due primarily to
$14.4 million of net income, partially offset by a $2.2 million
decrease in accumulated other comprehensive income on the Company's
portfolio of investment securities available for sale and increased
dividends of $3.6 million during the current year. Book value per
share increased to $14.17 at September 30, 2017 from $13.52 at
September 30, 2016 due to the Company's retention of earnings,
while tangible book value per share, a non-GAAP financial measure
(see Reconciliation of Non-GAAP Measures for further information)
decreased from $11.36 to $11.33, due to the increased intangible
assets acquired in the purchase of Resurgens.
Net Interest Income and Net Interest
Margin
Net interest income increased $1.1 million to
$13.3 million for the fourth quarter of fiscal 2017, compared with
$12.2 million for the prior-year period. Total interest income
increased $1.2 million. Both increases were largely attributable to
increased loan balances and loans receivable income as a result of
the Resurgens acquisition, as well as legacy loan growth during the
year. Loans receivable income, excluding accretion of acquired loan
discounts, a non-GAAP financial measure, increased $1.5 million to
$13.1 million during the current quarter from $11.6 million during
the prior-year quarter. The Company also experienced increases of
$230,000 in interest income on interest bearing deposits in other
financial institutions and $121,000 in interest on taxable
investment securities during the current-year quarter. The Company
also saw one-time gains of $169,000 and $193,000 in nonaccrual
interest recoveries and additional discount accretion due to
payoffs. Total interest expense increased $140,000 to $1.8 million
for the current quarter, largely due to increased balances of
higher-costing deposits from CBS and Resurgens. These increases
were offset in part by a $43,000 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%.
Net interest margin was 3.85% for the fourth
quarter of fiscal 2017, compared to 3.82% for the fourth quarter of
fiscal 2016. The Company's net interest margin, excluding the
effects of purchase accounting, a non-GAAP financial measure,
increased to 3.71% for the quarter ended September 30, 2017,
from 3.47% for the quarter ended September 30, 2016. Both
increases were attributable to increased loan income, both from
acquisitions and from legacy loan growth, as well as increased
yields on the Company's Federal Reserve deposits due to rate
increases.
Net interest income for the twelve months ended
September 30, 2017, increased $7.0 million, or 16.6%, to $49.1
million, compared to $42.2 million for the prior-year period.
Interest income increased $8.1 million to $55.9 million due to
increased loan balances as a result of the CBS acquisition early in
the third quarter of fiscal 2016 and the Resurgens acquisition late
in the fourth quarter of 2017. There was also a $677,000 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, a non-GAAP
financial measure, increased $9.4 million, while net purchase
discount accretion decreased $2.6 million.
At September 30, 2017, the Company had $4.1
million of remaining loan discount accretion related to the CBS and
Resurgens acquisitions, which will be accreted over the lives of
the loans acquired.
Provision for Loan Losses
The Company recorded provisions for loan losses
of $0 and $(900,000) in the quarter and year ended
September 30, 2017, respectively, due to the continued
positive credit quality trends of its loan portfolio and net
recoveries of previously charged-off loans. Provisions of
$(150,000) and $(250,000) were recorded in the quarter and year
ended September 30, 2016, respectively.
Noninterest Income and
Expense
Noninterest income increased $153,000 to $5.1
million in the fiscal 2017 fourth quarter compared to $4.9 million
in the same period of 2016. The increase was primarily due to a
$319,000, or 10.0% increase in deposit and bankcard fees,
reflecting the continued success of the Company's signature debit
card transaction marketing and deposit growth, and a nonrecurring
gain of $163,000 on recoveries of loans formerly covered under loss
sharing agreements with the FDIC. These increases were offset in
part by a $207,000 decrease in gain on sale of loans due to reduced
activity.
Noninterest expense for the quarter ended
September 30, 2017, increased $3.0 million to $14.4 million,
compared with $11.4 million for the prior-year quarter, primarily
due to $1.9 million of merger costs from the Resurgens acquisition,
which were largely concentrated in data processing, legal and
professional fees and severance costs. Net benefit of operations of
real estate owned decreased $269,000 due to reduced sales activity
in the current quarter as the balance of real estate owned has
fallen to minimal levels.
"Our core income components continued strong in
the fourth quarter despite several one-time expense items related
to the acquisition of Resurgens," Mr. Johnson continued. "While our
fourth quarter efficiency ratio of 78.31% for the current quarter
is high due to acquisition expenses, we've seen nice improvement in
our year-to-date ratio of 68.04%, as compared to 71.93% last year.
As we move toward conversion, we will continue our efforts to
improve our operating efficiency and build on our existing income
streams."
Noninterest income for the twelve months ended
September 30, 2017, decreased $1.7 million to $19.2 million,
compared with $21.0 million for the prior-year period. In the
fiscal 2017 period, the Company recorded $413,000 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 $1.2 million, gains on the sale of
loans of $300,000, gains on investment securities available for
sale of $199,000 and brokerage commissions of $75,000 during the
current-year period.
Noninterest expense for the twelve months ended
September 30, 2017 increased $1.1 million to $46.5 million
compared with $45.4 million for the prior-year period due primarily
to increased ongoing operational costs from the CBS acquisition in
salary, occupancy and data processing. During the year ended
September 30, 2017, the Company recorded $1.9 million of
acquisition expenses related to the Resurgens merger, while $4.2
million of such expenses were recorded in 2016 related to the CBS
acquisition. These increases were partly offset by decreases of
$450,000, or 19.5%, in legal and professional fees and $99,000 in
federal insurance premiums and other regulatory fees.
Asset Quality
Nonperforming assets at September 30, 2017
were at 0.19% of total assets, down from 0.45% at
September 30, 2016. The decline was primarily due to payoffs
of two long-standing, high-balance, non-performing loans in the
first quarter, as well as increased, high-quality loan balances
from acquisitions and continued positive asset quality trends. The
allowance for loan losses was at 0.96% of total loans and 649.13%
of nonperforming loans at September 30, 2017, compared to
1.03% and 277.66%, respectively, at September 30, 2016. Not
included in the allowance at September 30, 2017 was $4.1 million in
yield and credit discounts on the CBS- and Resurgens-acquired
loans. At September 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 $278,000 and $1.6
million in its allowance for loan losses for the quarter and
year ended September 30, 2017, respectively, compared
with net loan recoveries of $404,000 and $1.1 million 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.
No shares were repurchased during the second, third, or fourth
quarter of fiscal 2017.
During the quarter ended September 30,
2017, the Company paid $25.8 million in the acquisition of
Resurgens, and paid a $0.07 per-share dividend. The Company
announced on October 24, 2017 it would pay a dividend of $0.075 per
share on November 21, 2017 to shareholders of record as of November
10, 2017. This will be the fifth consecutive quarterly dividend
increase.
Mr. Johnson concluded, “Our 2013 MHC stock
conversion pushed our tangible common equity ratio (a non-GAAP
measure) to 24.78% and lowered our return on average tangible
equity (a non-GAAP measure) to 3.06%. Our subsequent capital
leveraging included aggressive buybacks of stock, increasing
dividends, organic growth and M&A growth. In fiscal 2016, we
continued our push into attractive growth markets with the
acquisition of CBS. In fiscal 2017 we opened the Buckhead branch
and purchased Resurgens Bank. We have increased our dividend for
five consecutive quarters. With a tangible common equity ratio of
10.72% at September 30, 2017, we have leveraged a significant
portion of our excess capital and improved return on average
tangible equity to 8.18% for the year ended September 30,
2017. We are very pleased with our progress toward becoming a fully
leveraged bank with market returns to stockholders but acknowledge
we still have some work to complete that transition."
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
and Resurgens Bank; 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) |
|
|
September 30,2017 |
|
September 30,2016 (1) |
Assets |
Cash and amounts due
from depository institutions |
$ |
25,455,465 |
|
|
$ |
14,472,867 |
|
Interest-earning
deposits in other financial institutions |
126,882,924 |
|
|
77,376,632 |
|
Cash and
cash equivalents |
152,338,389 |
|
|
91,849,499 |
|
Loans held for sale,
fair value of $1,998,988 and $2,991,756 |
1,961,185 |
|
|
2,941,982 |
|
Certificates of deposit
held at other financial institutions |
7,514,630 |
|
|
14,496,410 |
|
Investment securities
available for sale |
183,789,821 |
|
|
206,336,287 |
|
Federal Home Loan Bank
stock |
4,054,400 |
|
|
3,361,800 |
|
Restricted securities,
at cost |
279,000 |
|
|
279,000 |
|
Loans receivable |
1,161,519,752 |
|
|
1,005,702,737 |
|
Unamortized loan
origination fees, net |
(1,165,148 |
) |
|
(1,278,830 |
) |
Allowance for loan
losses |
(11,078,422 |
) |
|
(10,371,416 |
) |
Loans
receivable, net |
1,149,276,182 |
|
|
994,052,491 |
|
Other real estate
owned |
1,437,345 |
|
|
2,706,461 |
|
Accrued interest and
dividends receivable |
4,197,708 |
|
|
3,442,051 |
|
Premises and equipment,
net |
29,578,513 |
|
|
28,078,591 |
|
Goodwill |
39,347,378 |
|
|
29,793,756 |
|
Other intangible
assets, net of amortization |
3,614,833 |
|
|
2,639,608 |
|
Cash surrender value of
life insurance |
53,516,317 |
|
|
49,268,973 |
|
Deferred income
taxes |
5,914,446 |
|
|
4,366,522 |
|
Other assets |
3,338,413 |
|
|
4,775,805 |
|
Total
assets |
$ |
1,640,158,560 |
|
|
$ |
1,438,389,236 |
|
Liabilities and Stockholders’
Equity |
Liabilities: |
|
|
|
Deposits |
$ |
1,339,143,287 |
|
|
$ |
1,161,843,586 |
|
Long-term
borrowings |
60,023,100 |
|
|
50,000,000 |
|
Floating
rate junior subordinated debt |
6,724,646 |
|
|
6,587,549 |
|
Advance
payments by borrowers for taxes and insurance |
2,956,441 |
|
|
2,298,513 |
|
Other
liabilities |
17,112,581 |
|
|
14,510,052 |
|
Total
liabilities |
1,425,960,055 |
|
|
1,235,239,700 |
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.01 par value; 15,115,883 shares issued and outstanding at
September 30,2017 and 15,031,076 shares issued and outstanding at
September 30, 2016 |
151,159 |
|
|
150,311 |
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized at
September 30, 2017 andSeptember 30, 2016 |
— |
|
|
— |
|
Additional paid-in capital |
85,651,391 |
|
|
83,651,623 |
|
Unearned
compensation – ESOP |
(4,673,761 |
) |
|
(5,106,169 |
) |
Retained
earnings |
134,207,368 |
|
|
123,349,890 |
|
Accumulated other comprehensive (loss) income |
(1,137,652 |
) |
|
1,103,881 |
|
Total
stockholders’ equity |
214,198,505 |
|
|
203,149,536 |
|
Total liabilities and stockholders’ equity |
$ |
1,640,158,560 |
|
|
$ |
1,438,389,236 |
|
__________________________________
- Financial information at September 30, 2016 has been
derived from audited financial statements.
|
|
|
|
Charter Financial
CorporationCondensed Consolidated Statements of
Income (unaudited) |
|
|
|
|
|
Three Months Ended September
30, |
|
Twelve Months Ended September
30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 (1) |
Interest income: |
|
|
|
|
|
|
|
Loans
receivable |
$ |
13,583,671 |
|
|
$ |
12,680,420 |
|
|
$ |
50,333,085 |
|
|
$ |
43,548,848 |
|
Taxable
investment securities |
1,060,019 |
|
|
938,603 |
|
|
4,296,231 |
|
|
3,742,085 |
|
Nontaxable investment securities |
4,397 |
|
|
4,955 |
|
|
18,111 |
|
|
11,657 |
|
Federal
Home Loan Bank stock |
42,656 |
|
|
40,778 |
|
|
162,088 |
|
|
154,272 |
|
Interest-earning deposits in other financial institutions |
333,732 |
|
|
103,924 |
|
|
893,787 |
|
|
216,736 |
|
Certificates of deposit held at other financial institutions |
34,696 |
|
|
50,999 |
|
|
147,053 |
|
|
105,451 |
|
Restricted securities |
2,900 |
|
|
2,510 |
|
|
11,007 |
|
|
5,013 |
|
Total
interest income |
15,062,071 |
|
|
13,822,189 |
|
|
55,861,362 |
|
|
47,784,062 |
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
1,286,518 |
|
|
1,117,586 |
|
|
4,792,943 |
|
|
3,452,758 |
|
Borrowings |
344,358 |
|
|
386,975 |
|
|
1,422,003 |
|
|
1,955,445 |
|
Floating
rate junior subordinated debt |
131,135 |
|
|
117,801 |
|
|
504,608 |
|
|
221,571 |
|
Total
interest expense |
1,762,011 |
|
|
1,622,362 |
|
|
6,719,554 |
|
|
5,629,774 |
|
Net interest income |
13,300,060 |
|
|
12,199,827 |
|
|
49,141,808 |
|
|
42,154,288 |
|
Provision
for loan losses |
— |
|
|
(150,000 |
) |
|
(900,000 |
) |
|
(250,000 |
) |
Net interest income after provision for loan losses |
13,300,060 |
|
|
12,349,827 |
|
|
50,041,808 |
|
|
42,404,288 |
|
Noninterest
income: |
|
|
|
|
|
|
|
Service
charges on deposit accounts |
2,080,623 |
|
|
1,860,824 |
|
|
7,641,351 |
|
|
7,043,693 |
|
Bankcard
fees |
1,418,191 |
|
|
1,318,650 |
|
|
5,510,387 |
|
|
4,953,645 |
|
Gain on
investment securities available for sale |
— |
|
|
— |
|
|
247,780 |
|
|
48,885 |
|
Bank
owned life insurance |
310,469 |
|
|
332,594 |
|
|
1,195,445 |
|
|
1,225,422 |
|
Gain on
sale of loans |
601,424 |
|
|
808,228 |
|
|
2,418,272 |
|
|
2,118,012 |
|
Brokerage
commissions |
149,940 |
|
|
198,670 |
|
|
726,177 |
|
|
650,727 |
|
Recoveries on acquired loans previously covered under FDIC-assisted
acquisitions |
162,586 |
|
|
— |
|
|
412,586 |
|
|
3,625,000 |
|
Other |
347,042 |
|
|
398,791 |
|
|
1,086,775 |
|
|
1,298,746 |
|
Total
noninterest income |
5,070,275 |
|
|
4,917,757 |
|
|
19,238,773 |
|
|
20,964,130 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
7,688,488 |
|
|
6,634,984 |
|
|
26,431,145 |
|
|
25,655,810 |
|
Occupancy |
1,502,868 |
|
|
1,397,882 |
|
|
5,202,675 |
|
|
5,139,533 |
|
Data
processing |
1,925,199 |
|
|
903,769 |
|
|
4,929,336 |
|
|
4,427,636 |
|
Legal and
professional |
808,233 |
|
|
462,627 |
|
|
1,864,218 |
|
|
2,314,519 |
|
Marketing |
479,438 |
|
|
421,130 |
|
|
1,631,795 |
|
|
1,590,171 |
|
Federal
insurance premiums and other regulatory fees |
198,728 |
|
|
239,912 |
|
|
759,834 |
|
|
859,125 |
|
Net
benefit of operations of real estate owned |
(40,345 |
) |
|
(309,222 |
) |
|
(367,710 |
) |
|
(334,954 |
) |
Furniture
and equipment |
275,522 |
|
|
239,817 |
|
|
880,218 |
|
|
870,675 |
|
Postage,
office supplies and printing |
211,993 |
|
|
276,588 |
|
|
929,768 |
|
|
868,674 |
|
Core
deposit intangible amortization expense |
139,873 |
|
|
157,773 |
|
|
560,776 |
|
|
415,617 |
|
Other |
1,196,527 |
|
|
928,310 |
|
|
3,700,824 |
|
|
3,591,408 |
|
Total
noninterest expenses |
14,386,524 |
|
|
11,353,570 |
|
|
46,522,879 |
|
|
45,398,214 |
|
Income
before income taxes |
3,983,811 |
|
|
5,914,014 |
|
|
22,757,702 |
|
|
17,970,204 |
|
Income
tax expense |
1,424,017 |
|
|
2,103,296 |
|
|
8,321,597 |
|
|
6,106,884 |
|
Net income |
$ |
2,559,794 |
|
|
$ |
3,810,718 |
|
|
$ |
14,436,105 |
|
|
$ |
11,863,320 |
|
Basic net income per
share |
$ |
0.18 |
|
|
$ |
0.27 |
|
|
$ |
1.01 |
|
|
$ |
0.83 |
|
Diluted net income per
share |
$ |
0.17 |
|
|
$ |
0.26 |
|
|
$ |
0.95 |
|
|
$ |
0.79 |
|
Weighted average number
of common shares outstanding |
14,384,118 |
|
|
14,185,824 |
|
|
14,316,609 |
|
|
14,371,126 |
|
Weighted average number
of common and potential common sharesoutstanding |
15,240,907 |
|
|
14,798,042 |
|
|
15,153,373 |
|
|
14,983,344 |
|
__________________________________
- Financial information for the twelve months ended
September 30, 2016 has been derived from audited financial
statements.
|
Charter Financial
CorporationSupplemental Financial Data
(unaudited)in thousands except per share data |
|
|
|
|
|
|
Quarter to Date |
|
|
Year to Date |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 (1) |
|
|
9/30/2017 |
|
9/30/2016 (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
balance sheet data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,640,159 |
|
|
$ |
1,480,122 |
|
|
$ |
1,484,796 |
|
|
$ |
1,461,667 |
|
|
$ |
1,438,389 |
|
|
|
$ |
1,640,159 |
|
|
$ |
1,438,389 |
|
Cash and cash
equivalents |
152,338 |
|
|
120,144 |
|
|
140,285 |
|
|
131,849 |
|
|
91,849 |
|
|
|
152,338 |
|
|
91,849 |
|
Loans receivable,
net |
1,149,276 |
|
|
1,032,108 |
|
|
1,007,552 |
|
|
990,635 |
|
|
994,052 |
|
|
|
1,149,276 |
|
|
994,052 |
|
Other real estate
owned |
1,437 |
|
|
1,938 |
|
|
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
|
1,437 |
|
|
2,706 |
|
Securities available
for sale |
183,790 |
|
|
187,655 |
|
|
191,483 |
|
|
196,279 |
|
|
206,336 |
|
|
|
183,790 |
|
|
206,336 |
|
Transaction
accounts |
567,213 |
|
|
510,810 |
|
|
513,294 |
|
|
481,841 |
|
|
478,028 |
|
|
|
567,213 |
|
|
478,028 |
|
Total deposits |
1,339,143 |
|
|
1,194,254 |
|
|
1,201,731 |
|
|
1,186,347 |
|
|
1,161,844 |
|
|
|
1,339,143 |
|
|
1,161,844 |
|
Borrowings |
66,748 |
|
|
56,690 |
|
|
56,656 |
|
|
56,622 |
|
|
56,588 |
|
|
|
66,748 |
|
|
56,588 |
|
Total stockholders’
equity |
214,199 |
|
|
212,080 |
|
|
208,413 |
|
|
205,500 |
|
|
203,150 |
|
|
|
214,199 |
|
|
203,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
earnings summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
15,062 |
|
|
$ |
13,626 |
|
|
$ |
13,307 |
|
|
$ |
13,866 |
|
|
$ |
13,822 |
|
|
|
$ |
55,861 |
|
|
$ |
47,784 |
|
Interest expense |
1,762 |
|
|
1,639 |
|
|
1,652 |
|
|
1,666 |
|
|
1,622 |
|
|
|
6,719 |
|
|
5,630 |
|
Net
interest income |
13,300 |
|
|
11,987 |
|
|
11,655 |
|
|
12,200 |
|
|
12,200 |
|
|
|
49,142 |
|
|
42,154 |
|
Provision for loan
losses |
— |
|
|
— |
|
|
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
|
(900 |
) |
|
(250 |
) |
Net
interest income after provision for loan losses |
13,300 |
|
|
11,987 |
|
|
11,805 |
|
|
12,950 |
|
|
12,350 |
|
|
|
50,042 |
|
|
42,404 |
|
Noninterest income |
5,070 |
|
|
4,639 |
|
|
4,546 |
|
|
4,983 |
|
|
4,918 |
|
|
|
19,239 |
|
|
20,964 |
|
Noninterest
expense |
14,386 |
|
|
11,096 |
|
|
10,750 |
|
|
10,290 |
|
|
11,354 |
|
|
|
46,523 |
|
|
45,398 |
|
Income tax expense |
1,424 |
|
|
2,016 |
|
|
2,284 |
|
|
2,597 |
|
|
2,103 |
|
|
|
8,322 |
|
|
6,107 |
|
Net
income |
$ |
2,560 |
|
|
$ |
3,514 |
|
|
$ |
3,317 |
|
|
$ |
5,046 |
|
|
$ |
3,811 |
|
|
|
$ |
14,436 |
|
|
$ |
11,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
|
|
$ |
1.01 |
|
|
$ |
0.83 |
|
Earnings per share –
fully diluted |
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
|
$ |
0.95 |
|
|
$ |
0.79 |
|
Cash dividends per
share |
$ |
0.070 |
|
|
$ |
0.065 |
|
|
$ |
0.060 |
|
|
$ |
0.055 |
|
|
$ |
0.050 |
|
|
|
$ |
0.250 |
|
|
$ |
0.200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
14,384 |
|
|
14,353 |
|
|
14,322 |
|
|
14,207 |
|
|
14,186 |
|
|
|
14,317 |
|
|
14,371 |
|
Weighted average
diluted shares |
15,241 |
|
|
15,257 |
|
|
15,340 |
|
|
15,065 |
|
|
14,798 |
|
|
|
15,153 |
|
|
14,983 |
|
Total shares
outstanding |
15,116 |
|
|
15,112 |
|
|
15,061 |
|
|
15,031 |
|
|
15,031 |
|
|
|
15,116 |
|
|
15,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
14.17 |
|
|
$ |
14.03 |
|
|
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
|
|
$ |
14.17 |
|
|
$ |
13.52 |
|
Tangible book value per
share (2) |
$ |
11.33 |
|
|
$ |
11.92 |
|
|
$ |
11.70 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
|
$ |
11.33 |
|
|
$ |
11.36 |
|
__________________________________
- Financial information at and for the year ended
September 30, 2016 has been derived from audited financial
statements.
- 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 |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
|
9/30/2017 |
|
9/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4
family residential real estate |
$ |
232,040 |
|
|
$ |
222,904 |
|
|
$ |
223,216 |
|
|
$ |
223,609 |
|
|
$ |
236,940 |
|
|
|
$ |
232,040 |
|
|
$ |
236,940 |
|
Commercial real estate |
697,071 |
|
|
624,926 |
|
|
608,206 |
|
|
595,207 |
|
|
595,157 |
|
|
|
697,071 |
|
|
595,157 |
|
Commercial |
103,673 |
|
|
79,695 |
|
|
73,119 |
|
|
73,182 |
|
|
71,865 |
|
|
|
103,673 |
|
|
71,865 |
|
Real
estate construction |
88,792 |
|
|
75,941 |
|
|
77,332 |
|
|
79,136 |
|
|
80,500 |
|
|
|
88,792 |
|
|
80,500 |
|
Consumer
and other |
39,944 |
|
|
40,675 |
|
|
37,300 |
|
|
31,212 |
|
|
21,241 |
|
|
|
39,944 |
|
|
21,241 |
|
Total
loans receivable |
$ |
1,161,520 |
|
|
$ |
1,044,141 |
|
|
$ |
1,019,173 |
|
|
$ |
1,002,346 |
|
|
$ |
1,005,703 |
|
|
|
$ |
1,161,520 |
|
|
$ |
1,005,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
10,800 |
|
|
$ |
10,505 |
|
|
$ |
10,499 |
|
|
$ |
10,371 |
|
|
$ |
10,118 |
|
|
|
$ |
10,371 |
|
|
$ |
9,489 |
|
Charge-offs |
(76 |
) |
|
(73 |
) |
|
(103 |
) |
|
(50 |
) |
|
(1 |
) |
|
|
(303 |
) |
|
(228 |
) |
Recoveries |
354 |
|
|
368 |
|
|
259 |
|
|
928 |
|
|
404 |
|
|
|
1,910 |
|
|
1,360 |
|
Provision |
— |
|
|
— |
|
|
(150 |
) |
|
(750 |
) |
|
(150 |
) |
|
|
(900 |
) |
|
(250 |
) |
Balance
at end of period |
$ |
11,078 |
|
|
$ |
10,800 |
|
|
$ |
10,505 |
|
|
$ |
10,499 |
|
|
$ |
10,371 |
|
|
|
$ |
11,078 |
|
|
$ |
10,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,661 |
|
|
$ |
1,549 |
|
|
$ |
1,610 |
|
|
$ |
1,527 |
|
|
$ |
3,735 |
|
|
|
$ |
1,661 |
|
|
$ |
3,735 |
|
Loans
delinquent 90 days or greaterand still accruing |
46 |
|
|
291 |
|
|
— |
|
|
238 |
|
|
— |
|
|
|
46 |
|
|
— |
|
Total
nonperforming loans |
1,707 |
|
|
1,840 |
|
|
1,610 |
|
|
1,765 |
|
|
3,735 |
|
|
|
1,707 |
|
|
3,735 |
|
Other
real estate owned |
1,437 |
|
|
1,938 |
|
|
1,957 |
|
|
2,161 |
|
|
2,706 |
|
|
|
1,437 |
|
|
2,706 |
|
Total
nonperforming assets |
$ |
3,144 |
|
|
$ |
3,778 |
|
|
$ |
3,567 |
|
|
$ |
3,926 |
|
|
$ |
6,441 |
|
|
|
$ |
3,144 |
|
|
$ |
6,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled
debt restructurings - accruing |
$ |
4,951 |
|
|
$ |
5,007 |
|
|
$ |
5,073 |
|
|
$ |
4,761 |
|
|
$ |
4,585 |
|
|
|
$ |
4,951 |
|
|
$ |
4,585 |
|
Troubled
debt restructurings - nonaccrual |
92 |
|
|
107 |
|
|
137 |
|
|
192 |
|
|
1,760 |
|
|
|
92 |
|
|
1,760 |
|
Total
troubled debt restructurings |
$ |
5,043 |
|
|
$ |
5,114 |
|
|
$ |
5,210 |
|
|
$ |
4,953 |
|
|
$ |
6,345 |
|
|
|
$ |
5,043 |
|
|
$ |
6,345 |
|
__________________________________
- 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 |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
|
|
9/30/2017 |
|
9/30/2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(annualized) |
4.77 |
% |
|
6.65 |
% |
|
6.40 |
% |
|
9.84 |
% |
|
7.55 |
% |
|
|
6.89 |
% |
|
5.90 |
% |
Return on assets
(annualized) |
0.67 |
% |
|
0.96 |
% |
|
0.91 |
% |
|
1.39 |
% |
|
1.07 |
% |
|
|
0.98 |
% |
|
0.98 |
% |
Net interest margin
(annualized) |
3.85 |
% |
|
3.60 |
% |
|
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
|
|
3.67 |
% |
|
3.89 |
% |
Net interest margin,
excluding the effects of purchase accounting (1) |
3.71 |
% |
|
3.55 |
% |
|
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
|
3.53 |
% |
|
3.47 |
% |
Holding company tier 1
leverage ratio (2) |
12.05 |
% |
|
13.08 |
% |
|
12.92 |
% |
|
12.83 |
% |
|
12.68 |
% |
|
|
12.05 |
% |
|
12.68 |
% |
Holding company total
risk-based capital ratio (2) |
15.79 |
% |
|
17.98 |
% |
|
17.93 |
% |
|
17.38 |
% |
|
16.74 |
% |
|
|
15.79 |
% |
|
16.74 |
% |
Bank tier 1 leverage
ratio (2) (3) |
10.96 |
% |
|
12.06 |
% |
|
11.84 |
% |
|
11.70 |
% |
|
11.51 |
% |
|
|
10.96 |
% |
|
11.51 |
% |
Bank total risk-based
capital ratio (2) |
14.45 |
% |
|
16.67 |
% |
|
16.53 |
% |
|
15.91 |
% |
|
15.26 |
% |
|
|
14.45 |
% |
|
15.26 |
% |
Effective tax rate |
35.75 |
% |
|
36.46 |
% |
|
40.78 |
% |
|
33.98 |
% |
|
35.56 |
% |
|
|
36.57 |
% |
|
33.98 |
% |
Yield on loans |
5.04 |
% |
|
4.79 |
% |
|
4.74 |
% |
|
5.01 |
% |
|
5.07 |
% |
|
|
4.90 |
% |
|
5.15 |
% |
Cost of deposits |
0.50 |
% |
|
0.47 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
|
0.47 |
% |
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios:
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a %of total loans (5) |
0.96 |
% |
|
1.04 |
% |
|
1.04 |
% |
|
1.05 |
% |
|
1.03 |
% |
|
|
0.96 |
% |
|
1.03 |
% |
Allowance
for loan losses as a %of nonperforming loans |
649.13 |
% |
|
586.83 |
% |
|
652.47 |
% |
|
594.81 |
% |
|
277.66 |
% |
|
|
649.13 |
% |
|
277.66 |
% |
Nonperforming assets as a % oftotal loans and OREO |
0.27 |
% |
|
0.36 |
% |
|
0.35 |
% |
|
0.39 |
% |
|
0.64 |
% |
|
|
0.27 |
% |
|
0.64 |
% |
Nonperforming assets as a % oftotal assets |
0.19 |
% |
|
0.26 |
% |
|
0.24 |
% |
|
0.27 |
% |
|
0.45 |
% |
|
|
0.19 |
% |
|
0.45 |
% |
Net
charge-offs (recoveries) as a% of average loans (annualized) |
(0.10 |
)% |
|
(0.12 |
)% |
|
(0.06 |
)% |
|
(0.35 |
)% |
|
(0.16 |
)% |
|
|
(0.16 |
)% |
|
(0.13 |
)% |
__________________________________
- 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 $2.6 million, $2.0 million, $2.2 million, $2.9
million and $3.8 million for the quarters ended September 30,
2017, June 30, 2017, March 31, 2017, December 31,
2016, and September 30, 2016, respectively.
- Current period bank and holding company capital ratios are
estimated as of the date of this earnings release.
- During the quarter ended September 30, 2017, a net upstream of
capital was made between the bank and the holding company in the
amount of $2.7 million as part of the Company's acquisition of
Resurgens.
- Ratios for the three months ended September 30, 2017,
June 30, 2017, March 31, 2017, December 31, 2016,
and September 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.
- Excluding former CBS and Resurgens loans totaling $254.2
million, $154.0 million, $166.5 million, $191.9 million and $236.4
million at September 30, 2017, June 30, 2017,
March 31, 2017, December 31, 2016, and September 30,
2016, respectively, which were recorded at acquisition date fair
value, the allowance approximated 1.22%, 1.22%, 1.24%, 1.30%, and
1.35% of all other loans at September 30, 2017, June 30,
2017, March 31, 2017, December 31, 2016, and September 30, 2016,
respectively.
|
|
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands |
|
|
|
Quarter to Date |
|
9/30/2017 |
|
9/30/2016 |
|
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 |
$ |
106,057 |
|
|
$ |
334 |
|
|
1.26 |
% |
|
$ |
85,687 |
|
|
$ |
104 |
|
|
0.49 |
% |
Certificates of deposit held at other financial institutions |
7,580 |
|
|
35 |
|
|
1.83 |
|
|
16,395 |
|
|
51 |
|
|
1.24 |
|
FHLB
common stock and other equity securities |
3,670 |
|
|
43 |
|
|
4.65 |
|
|
3,362 |
|
|
41 |
|
|
4.85 |
|
Taxable
investment securities |
186,043 |
|
|
1,060 |
|
|
2.28 |
|
|
169,555 |
|
|
939 |
|
|
2.21 |
|
Nontaxable investment securities (1) |
1,505 |
|
|
4 |
|
|
1.17 |
|
|
1,607 |
|
|
5 |
|
|
1.23 |
|
Restricted securities |
279 |
|
|
3 |
|
|
4.16 |
|
|
279 |
|
|
3 |
|
|
3.60 |
|
Loans
receivable (1)(2)(3)(4) |
1,077,617 |
|
|
13,097 |
|
|
4.86 |
|
|
1,001,096 |
|
|
11,590 |
|
|
4.63 |
|
Accretion, net, of acquired loan discounts (5) |
|
|
486 |
|
|
0.18 |
|
|
|
|
1,090 |
|
|
0.43 |
|
Total
interest-earning assets |
1,382,751 |
|
|
15,062 |
|
|
4.36 |
|
|
1,277,981 |
|
|
13,823 |
|
|
4.33 |
|
Total
noninterest-earning assets |
148,678 |
|
|
|
|
|
|
148,359 |
|
|
|
|
|
Total
assets |
$ |
1,531,429 |
|
|
|
|
|
|
$ |
1,426,340 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
266,133 |
|
|
$ |
122 |
|
|
0.18 |
% |
|
$ |
239,141 |
|
|
$ |
97 |
|
|
0.15 |
% |
Bank
rewarded checking |
53,992 |
|
|
27 |
|
|
0.20 |
|
|
50,566 |
|
|
24 |
|
|
0.19 |
|
Savings
accounts |
65,784 |
|
|
7 |
|
|
0.04 |
|
|
63,196 |
|
|
7 |
|
|
0.04 |
|
Money
market deposit accounts |
253,260 |
|
|
209 |
|
|
0.33 |
|
|
241,286 |
|
|
180 |
|
|
0.30 |
|
Certificate of deposit accounts |
394,078 |
|
|
922 |
|
|
0.94 |
|
|
373,197 |
|
|
810 |
|
|
0.87 |
|
Total
interest-bearing deposits |
1,033,247 |
|
|
1,287 |
|
|
0.50 |
|
|
967,386 |
|
|
1,118 |
|
|
0.46 |
|
Borrowed
funds |
53,290 |
|
|
344 |
|
|
2.58 |
|
|
50,000 |
|
|
387 |
|
|
3.10 |
|
Floating
rate junior subordinated debt |
6,702 |
|
|
131 |
|
|
7.83 |
|
|
6,564 |
|
|
118 |
|
|
7.18 |
|
Total
interest-bearing liabilities |
1,093,239 |
|
|
1,762 |
|
|
0.64 |
|
|
1,023,950 |
|
|
1,623 |
|
|
0.63 |
|
Noninterest-bearing deposits |
204,608 |
|
|
|
|
|
|
180,015 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
19,094 |
|
|
|
|
|
|
20,605 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
223,702 |
|
|
|
|
|
|
200,620 |
|
|
|
|
|
Total
liabilities |
1,316,941 |
|
|
|
|
|
|
1,224,570 |
|
|
|
|
|
Total
stockholders' equity |
214,488 |
|
|
|
|
|
|
201,770 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,531,429 |
|
|
|
|
|
|
$ |
1,426,340 |
|
|
|
|
|
Net interest income |
|
|
$ |
13,300 |
|
|
|
|
|
|
$ |
12,200 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
289,512 |
|
|
|
|
|
|
$ |
254,031 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.72 |
% |
|
|
|
|
|
3.69 |
% |
Net
interest margin (8) |
|
|
|
|
3.85 |
% |
|
|
|
|
|
3.82 |
% |
Net
interest margin, excluding the effects of purchaseaccounting
(9) |
|
|
|
|
3.71 |
% |
|
|
|
|
|
3.47 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
126.48 |
% |
|
|
|
|
|
124.81 |
% |
__________________________________
- Tax exempt or tax-advantaged securities and loans are shown at
their contractual yields and are not shown at a tax equivalent
yield.
- Includes net loan fees deferred and accreted pursuant to
applicable accounting requirements.
- Interest income on loans is interest income as recorded in the
income statement and does not include interest income on nonaccrual
loans.
- Interest income on loans excludes discount accretion.
- Accretion of accretable purchase discount on loans
acquired.
- Net interest-earning assets represent total average
interest-earning assets less total average interest-bearing
liabilities.
- 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.
- Net interest margin represents net interest income as a
percentage of average interest-earning assets.
- 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 $3.8
million for the quarters ended September 30, 2017 and
September 30, 2016, respectively.
- Annualized.
|
|
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands |
|
|
|
Fiscal Year to Date |
|
9/30/2017 |
|
9/30/2016 |
|
AverageBalance |
|
Interest |
|
Average Yield/Cost (10) |
|
AverageBalance |
|
Interest |
|
Average Yield/Cost (10) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits in other financial institutions |
$ |
103,483 |
|
|
$ |
894 |
|
|
0.86 |
% |
|
$ |
52,667 |
|
|
$ |
217 |
|
|
0.41 |
% |
Certificates of deposit held at other financial institutions |
10,457 |
|
|
147 |
|
|
1.41 |
|
|
8,946 |
|
|
105 |
|
|
1.18 |
|
FHLB
common stock and other equity securities |
3,478 |
|
|
162 |
|
|
4.66 |
|
|
3,222 |
|
|
154 |
|
|
4.79 |
|
Taxable
investment securities |
191,236 |
|
|
4,296 |
|
|
2.25 |
|
|
173,888 |
|
|
3,742 |
|
|
2.15 |
|
Nontaxable investment securities (1) |
1,567 |
|
|
18 |
|
|
1.16 |
|
|
997 |
|
|
12 |
|
|
1.17 |
|
Restricted securities |
279 |
|
|
11 |
|
|
3.95 |
|
|
129 |
|
|
5 |
|
|
3.89 |
|
Loans
receivable (1)(2)(3)(4) |
1,028,097 |
|
|
48,591 |
|
|
4.73 |
|
|
845,014 |
|
|
39,178 |
|
|
4.64 |
|
Accretion
and amortization of acquired loan discounts (5) |
|
|
1,742 |
|
|
0.17 |
|
|
|
|
4,371 |
|
|
0.52 |
|
Total
interest-earning assets |
1,338,597 |
|
|
55,861 |
|
|
4.17 |
|
|
1,084,863 |
|
|
47,784 |
|
|
4.40 |
|
Total
noninterest-earning assets |
139,897 |
|
|
|
|
|
|
122,056 |
|
|
|
|
|
Total
assets |
$ |
1,478,494 |
|
|
|
|
|
|
$ |
1,206,919 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
255,863 |
|
|
$ |
406 |
|
|
0.16 |
% |
|
$ |
206,985 |
|
|
$ |
278 |
|
|
0.13 |
% |
Bank
rewarded checking |
53,556 |
|
|
105 |
|
|
0.20 |
|
|
49,077 |
|
|
97 |
|
|
0.20 |
|
Savings
accounts |
63,927 |
|
|
25 |
|
|
0.04 |
|
|
56,963 |
|
|
23 |
|
|
0.04 |
|
Money
market deposit accounts |
252,148 |
|
|
777 |
|
|
0.31 |
|
|
185,818 |
|
|
522 |
|
|
0.28 |
|
Certificate of deposit accounts |
384,304 |
|
|
3,480 |
|
|
0.91 |
|
|
297,270 |
|
|
2,533 |
|
|
0.85 |
|
Total
interest-bearing deposits |
1,009,798 |
|
|
4,793 |
|
|
0.47 |
|
|
796,113 |
|
|
3,453 |
|
|
0.43 |
|
Borrowed
funds |
50,832 |
|
|
1,422 |
|
|
2.80 |
|
|
51,181 |
|
|
1,955 |
|
|
3.82 |
|
Floating
rate junior subordinated debt |
6,651 |
|
|
505 |
|
|
7.59 |
|
|
3,022 |
|
|
222 |
|
|
7.33 |
|
Total
interest-bearing liabilities |
1,067,281 |
|
|
6,720 |
|
|
0.63 |
|
|
850,316 |
|
|
5,630 |
|
|
0.66 |
|
Noninterest-bearing deposits |
184,825 |
|
|
|
|
|
|
140,423 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
16,846 |
|
|
|
|
|
|
15,028 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
201,671 |
|
|
|
|
|
|
155,451 |
|
|
|
|
|
Total
liabilities |
1,268,952 |
|
|
|
|
|
|
1,005,767 |
|
|
|
|
|
Total
stockholders' equity |
209,542 |
|
|
|
|
|
|
201,152 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
1,478,494 |
|
|
|
|
|
|
$ |
1,206,919 |
|
|
|
|
|
Net interest income |
|
|
$ |
49,141 |
|
|
|
|
|
|
$ |
42,154 |
|
|
|
Net interest earning assets (6) |
|
|
$ |
271,316 |
|
|
|
|
|
|
$ |
234,547 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.54 |
% |
|
|
|
|
|
3.74 |
% |
Net
interest margin (8) |
|
|
|
|
3.67 |
% |
|
|
|
|
|
3.89 |
% |
Net
interest margin, excluding the effects of purchaseaccounting
(9) |
|
|
|
|
3.53 |
% |
|
|
|
|
|
3.47 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
125.42 |
% |
|
|
|
|
|
127.58 |
% |
__________________________________
- Tax exempt or tax-advantaged securities and loans are shown at
their contractual yields and are not shown at a tax equivalent
yield.
- Includes net loan fees deferred and accreted pursuant to
applicable accounting requirements.
- Interest income on loans is interest income as recorded in the
income statement and does not include interest income on nonaccrual
loans.
- Interest income on loans excludes discount accretion.
- Accretion of accretable purchase discount on loans
acquired.
- Net interest-earning assets represent total average
interest-earning assets less total average interest-bearing
liabilities.
- 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.
- Net interest margin represents net interest income as a
percentage of average interest-earning assets.
- 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 $3.4
million for the twelve months ended September 30, 2017 and
September 30, 2016, respectively.
- 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, tangible book value
per share, tangible common equity ratio, and return on average
tangible equity, 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. Tangible common equity ratio
excludes the following from total equity to total assets: the
balance of goodwill and other intangible assets in both total
equity and total assets. Return on average tangible equity excludes
the following from return on average equity: the average 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 |
|
9/30/2017 |
|
6/30/2017 |
|
3/31/2017 |
|
12/31/2016 |
|
9/30/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
|
|
|
|
|
|
Loans
receivable income |
$ |
13,583,671 |
|
|
$ |
12,276,095 |
|
|
$ |
11,903,416 |
|
|
$ |
12,569,903 |
|
|
$ |
12,680,420 |
|
Net
purchase discount accretion |
486,471 |
|
|
173,014 |
|
|
358,031 |
|
|
724,109 |
|
|
1,090,886 |
|
Loans
receivable income excludingaccretion (Non-GAAP) |
$ |
13,097,200 |
|
|
$ |
12,103,081 |
|
|
$ |
11,545,385 |
|
|
$ |
11,845,794 |
|
|
$ |
11,589,534 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
|
|
|
|
|
|
Net
Interest Margin |
3.85 |
% |
|
3.6 |
% |
|
3.52 |
% |
|
3.71 |
% |
|
3.82 |
% |
Effect to
adjust for net purchase discount accretion |
(0.14 |
) |
|
(0.05 |
) |
|
(0.11 |
) |
|
(0.23 |
) |
|
(0.35 |
) |
Net
interest margin excluding the effectsof purchase accounting
(Non-GAAP) |
3.71 |
% |
|
3.55 |
% |
|
3.41 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
14.17 |
|
|
$ |
14.03 |
|
|
$ |
13.84 |
|
|
$ |
13.67 |
|
|
$ |
13.52 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.84 |
) |
|
(2.11 |
) |
|
(2.14 |
) |
|
(2.15 |
) |
|
(2.16 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.33 |
|
|
$ |
11.92 |
|
|
$ |
11.70 |
|
|
$ |
11.52 |
|
|
$ |
11.36 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity Ratio |
|
|
|
|
|
|
|
|
|
Total
equity to total assets |
13.06 |
% |
|
14.33 |
% |
|
14.04 |
% |
|
14.06 |
% |
|
14.12 |
% |
Effect to
adjust for goodwill and other intangible assets |
(2.34 |
) |
|
(1.90 |
) |
|
(1.90 |
) |
|
(1.94 |
) |
|
(1.98 |
) |
Tangible
common equity ratio (Non-GAAP) |
10.72 |
% |
|
12.43 |
% |
|
12.14 |
% |
|
12.12 |
% |
|
12.14 |
% |
|
|
|
|
|
|
|
|
|
|
Return On
Average Tangible Equity |
|
|
|
|
|
|
|
|
|
Return on
average equity |
4.77 |
% |
|
6.65 |
% |
|
6.40 |
% |
|
9.84 |
% |
|
7.55 |
% |
Effect to
adjust for goodwill and other intangible assets |
0.95 |
|
|
1.19 |
|
|
1.18 |
|
|
1.85 |
|
|
1.46 |
|
Return on
average tangible equity (Non-GAAP) |
5.72 |
% |
|
7.84 |
% |
|
7.58 |
% |
|
11.69 |
% |
|
9.01 |
% |
|
|
|
|
For the Twelve Months Ended |
|
9/30/2017 |
|
9/30/2016 |
Loans
Receivable Income Excluding Accretion |
|
|
|
Loans
receivable income |
$ |
50,333,085 |
|
|
$ |
43,548,848 |
|
Net
purchase discount accretion |
1,741,625 |
|
|
4,371,087 |
|
Loans
receivable income excluding accretion (Non-GAAP) |
$ |
48,591,460 |
|
|
$ |
39,177,761 |
|
|
|
|
|
Net Interest
Margin Excluding the Effects of Purchase Accounting |
|
|
|
Net
Interest Margin |
3.67 |
% |
|
3.89 |
% |
Effect to
adjust for net purchase discount accretion |
(0.14 |
) |
|
(0.42 |
) |
Net
interest margin excluding the effects of purchase accounting
(Non-GAAP) |
3.53 |
% |
|
3.47 |
% |
|
|
|
|
Tangible Book
Value Per Share |
|
|
|
Book
value per share |
$ |
14.17 |
|
|
$ |
13.52 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.84 |
) |
|
(2.16 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.33 |
|
|
$ |
11.36 |
|
|
|
|
|
Tangible Common
Equity Ratio |
|
|
|
Total
equity to total assets |
13.06 |
% |
|
14.12 |
% |
Effect to
adjust for goodwill and other intangible assets |
(2.34 |
) |
|
(1.98 |
) |
Tangible
common equity ratio (Non-GAAP) |
10.72 |
% |
|
12.14 |
% |
|
|
|
|
Return On
Average Tangible Equity |
|
|
|
Return on
average equity |
6.89 |
% |
|
5.90 |
% |
Effect to
adjust for goodwill and other intangible assets |
1.29 |
|
|
0.56 |
|
Return on
average tangible equity (Non-GAAP) |
8.18 |
% |
|
6.46 |
% |
|
|
|
Contact: |
|
|
Robert L. Johnson,
Chairman & CEO |
|
Dresner Corporate
Services |
Curt Kollar, CFO |
|
Steve Carr |
706-645-1391 |
|
312-780-7211 |
bjohnson@charterbank.net or |
|
scarr@dresnerco.com |
ckollar@charterbank.net |
|
|
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