Charter Financial Corporation (the “Company”) (NASDAQ:CHFN) today
reported net income of $4.6 million for the quarter ended
June 30, 2018, or $0.32 and $0.30 per basic and
diluted share, respectively, compared with net income of $3.5
million, or $0.24 and $0.23 per basic and diluted share,
respectively, for the quarter ended June 30,
2017.
Net income for the current-year quarter
increased $1.1 million from the prior-year quarter. The increase
was attributable to an increase of $2.9 million, or 23.6%, in loans
receivable income due largely to the Company's September 2017
acquisition of Resurgens Bancorp ("Resurgens") and the associated
increase in loan balances. The interest income increase was offset
in part by a $2.2 million increase in noninterest expense, which
was tied to increased ongoing operational costs as a result of the
Resurgens acquisition and nonrecurring merger-related costs from
the Company's pending merger with CenterState Bank Corporation
("CenterState").
"We are pleased with another strong quarter,"
said Chairman and CEO Robert L. Johnson. "Over the last few years
we've stacked quarterly improvements in net interest margin,
earnings per share, and asset quality, and these trends drive
value."
Net income for the nine months ended
June 30, 2018 was $14.3 million, or $0.99 and $0.94 per basic
and diluted share, respectively, compared with net income of $11.9
million, or $0.83 and $0.78 per basic and diluted share,
respectively, for the same period in 2017. The increase was largely
a result of increased interest income as a result of the Resurgens
acquisition, offset in part by a discrete tax expense from a
reduction of the Company's net deferred tax assets of $1.5 million
as a result of the Tax Cuts and Jobs Act of 2017, enacted on
December 22, 2017 (the "Tax Act"). The Company's year-to-date
annualized return on equity as of June 30, 2018 was 8.65%, as
compared to 6.89% for the last full fiscal year, while the
Company's annualized return on tangible equity (a non-GAAP measure
which excludes the average balance of intangible assets from
average equity) was 10.73%, as compared to 8.18% for the fiscal
year ended September 30, 2017.
Merger agreement with CenterState Bank
Corporation
As previously announced on April 24, 2018, the
Company and CenterState signed a definitive agreement and plan of
merger (the "Merger Agreement") pursuant to which the Company will
merge with and into CenterState (the "Merger"), while the Company's
bank subsidiary, CharterBank (the "Bank"), will merge with and into
CenterState Bank, the wholly-owned bank subsidiary of CenterState
(the "Bank Merger"). Subject to the terms of the Merger Agreement,
the Company's stockholders will receive 0.738 shares of CenterState
common stock and $2.30 in cash consideration for each outstanding
share of the Company's common stock. Lee Washam, President of the
Company and the Bank, will join CenterState as Regional President
for Georgia. Completion of the merger is subject to customary
closing conditions, including regulatory approval and approval of
Charter's stockholders. The Company will hold a special meeting of
stockholders on August 21, 2018, at 10:00 a.m. Eastern time to vote
on the Merger Agreement.
Quarterly Operating Results
Quarterly earnings for the third quarter of fiscal 2018 compared
with the third quarter of fiscal 2017 were positively impacted
by:
- An increase in loans receivable income of $2.9 million, or
23.6%, to $15.2 million for the 2018 third quarter, compared with
$12.3 million for the same quarter in 2017, as a result of the
Resurgens acquisition, as well as additional accretion of $296,000
due to the renewal of a loan acquired from Community Bank of the
South ("CBS").
- An increase in bankcard fee income of $247,000, or 17.1%, due
to the continued success of the Company's signature debit card
marketing.
- Interest on interest-bearing deposits in other financial
institutions increased $376,000 due to increased cash balances and
the Federal Reserve's rate increases.
- A new quarterly incentive payment of $93,000 from the Company's
bankcard vendor, included in other income.
Quarterly earnings for the third quarter of
fiscal 2018 compared with the third quarter of fiscal 2017 were
negatively impacted by:
- Nonrecurring merger-related expenses from the pending
CenterState merger of $844,000, largely consisting of legal and
professional fees. Virtually no merger-related costs were recorded
in the same period in 2017.
- An increase in interest expense on deposits of $414,000, or
35.0%, due to higher balances as well as an increase of 12 basis
points in the Company's cost of deposits due to higher-costing
deposits from Resurgens assumed in September 2017 and higher
interest rates driven by the Federal Reserve's rate increases
pushing legacy deposit costs higher.
- Salaries and employee benefits increased $519,000, or 7.9%, due
to increased incentive compensation accruals as well as increased
ongoing costs as a result of the Resurgens acquisition.
Financial Condition
Total assets decreased $14.3 million from
September 30, 2017, to $1.6 billion at June 30, 2018,
largely attributable to a $26.6 million, or 14.4%, decline in
investment securities available for sale due to paydowns and
payoffs. Net loans grew $2.2 million, or 0.2%, to $1.2 billion at
June 30, 2018, due primarily to $2.9 million of growth in the
Atlanta Metropolitan Statistical Area ("MSA"). Loans in the Atlanta
MSA now account for 56% of the Company's gross loan balance.
Total deposits decreased $21.4 million to $1.3
billion during the nine months ended June 30, 2018, largely
due to a decrease of $37.3 million in retail certificates of
deposit. The decrease in CDs was offset in part by growth of $12.7
million in transaction accounts and $6.7 million in money market
deposit accounts from September 30, 2017.
From September 30, 2017 to June 30,
2018, total stockholders' equity increased $10.2 million to $224.4
million due primarily to $14.3 million of net income, offset by a
$2.0 million increase in accumulated other comprehensive loss and
$3.5 million in dividends. Book value per share increased to $14.70
at June 30, 2018, from $14.17 at September 30, 2017,
while tangible book value per share, a non-GAAP financial measure
(see Reconciliation of Non-GAAP Measures for further information)
increased to $11.92 from $11.33, both due to the Company's
retention of earnings.
Net Interest Income and Net Interest
Margin
Net interest income increased $2.8 million to
$14.8 million for the third quarter of fiscal 2018, compared
with $12.0 million for the prior-year period. Total interest income
increased $3.3 million over the same period. These increases were
attributable to increased loan balances and loans receivable
interest income as a result of the Resurgens acquisition, as well
as increased loan interest income from the higher market interest
rates. Loans receivable interest income increased $2.9 million to
$15.2 million during the current quarter from $12.3 million during
the prior-year quarter. The Company also experienced an increase of
$376,000 in interest income on interest-bearing deposits in other
financial institutions during the current-year quarter due to
higher balances and higher rates paid on overnight balances. Total
interest expense increased $474,000 to $2.1 million for the current
quarter, due to an 11 basis point increase in the average cost and
a $97.9 million increase in the average balance of interest-bearing
liabilities. A portion of the rate increase was attributable to
increased interest rates on money market accounts and certificates
of deposit, while the remainder was tied to higher-costing deposits
from the Resurgens acquisition.
"Our sturdy deposit base has added resilience to
our liquidity and helped us grow net interest margin in a rising
rate environment," Mr. Johnson added. "It provides significant
flexibility in pricing and product offerings on deposits and loans,
which allows us to remain competitive."
Net interest margin was 3.98% for the third
quarter of fiscal 2018, compared to 3.60% for the third quarter of
fiscal 2017. The impact of purchase accounting on the Company's net
interest margin was 0.17% for the quarter ended June 30, 2018,
compared to 0.05% for the quarter ended June 30, 2017, due to
the aforementioned $296,000 of additional accretion during the
current quarter. The increase in net interest margin was
attributable to increased loan income, both from acquisitions and
legacy loan growth, as well as increased yields on the Company's
Federal Reserve deposits.
Net interest income for the nine months ended
June 30, 2018, increased $7.9 million, or 22.1%, to $43.8
million, compared to $35.8 million for the prior-year period.
Interest income increased $9.0 million, or 22.1%, to $49.8 million
due to increased balances and higher yields on loans from the
Resurgens acquisition and interest-bearing deposits in other
financial institutions. Interest expense increased $1.1 million, or
22.3%, to $6.1 million due to higher deposit balances from the
Resurgens acquisition and an increase in the average cost of
deposits of eight basis points.
At June 30, 2018, the Company had $2.3
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 no provision for loan
losses during the three months ended June 30, 2018, and a
$350,000 negative provision during the nine months ended June 30,
2018, due to the continued positive credit quality trends of its
loan portfolio and net recoveries of previously charged-off loans.
No provision was recorded during the three months ended June 30,
2017, while a negative provision of $900,000 was recorded during
the nine months ended June 30, 2017.
Noninterest Income and
Expense
Noninterest income increased $585,000, or 12.6%,
to $5.2 million in the fiscal 2018 third quarter compared to $4.6
million in the same period of 2017 as the Company's efforts to
diversify its income streams continued to be effective. The
increase was primarily due to a $373,000, or 10.9%, increase in
deposit and bankcard fees. The Company's $1.7 million of bankcard
fee income was its highest-ever quarterly total. There was also a
$93,000 gain on incentive rebates from our debit card vendor.
Noninterest expense for the quarter ended
June 30, 2018, increased $2.2 million to $13.3 million,
compared with $11.1 million for the prior-year quarter, primarily
due to increased ongoing operational costs as a result of the
acquisition of Resurgens as well as $844,000 of acquisition costs
from the pending CenterState merger. Salaries and employee benefits
increased $519,000, or 7.9%, to $7.0 million during the current
quarter, while occupancy and data processing increased $393,000 and
$188,000, or 34.0% and 17.2%, over the prior-year quarter.
"Our noninterest income streams continue to
perform well," Mr. Johnson continued. "Thanks again to our strong
checking deposit base, we have grown reliable deposit service
charges. Our bankcard fees are best in class. Brokerage fees, debit
card vendor incentive rebates, and mortgage-related fees add to
what make us an attractive, stable franchise."
Noninterest income for the nine months ended
June 30, 2018, increased $1.4 million, or 10.0%, to $15.6
million, compared with $14.2 million for the prior-year period. The
increase was largely due to an increase of $1.2 million, or 12.8%,
in deposit and bankcard fees, $387,000 in incentive rebates from
the Company's bankcard vendor, a nonrecurring $266,000 gain on the
sale of assets available for sale, and a $145,000, or 16.4%
increase in bank owned life insurance. These increases were offset
in part by a $247,000 decrease in gains on the sale of investment
securities for sale and a decrease in gains on sale of loans of
$177,000 due to reduced activity. The Company also recorded a
$250,000 recovery on loans previously covered in FDIC-assisted
acquisitions during the prior year, while no such gain was recorded
for the same period in the current fiscal year.
Noninterest expense for the nine months ended
June 30, 2018 increased $5.7 million, or 17.9%, to $37.9
million compared with $32.1 million for the prior-year period. The
increase was primarily attributable to increased ongoing
operational costs from the Resurgens acquisition, as well as a
combined $1.8 million of merger-related expenses from Resurgens and
CenterState. Salaries and employee benefits, occupancy, and data
processing increased $1.7 million, $880,000, and $677,000,
respectively. The net benefit of operations of real estate owned
also decreased $287,000 due to reduced sales activity as the
Company's portfolio of other real estate has fallen to minimal
levels. These increases were offset in part by a reduction of
$221,000 in legal and professional fees.
Asset Quality
Nonperforming assets at June 30, 2018, were
at 0.11% of total assets, an eight basis point decline from
September 30, 2017. The decrease was primarily attributable to
a $1.2 million, or 84.2%, decline in the balance of other real
estate owned to $228,000 at June 30, 2018. Nonaccrual loans
also declined $293,000 from September 30, 2017.
The allowance for loan losses was at 0.99% of
total loans and 714.79% of nonperforming loans at June 30,
2018, compared to 0.96% and 649.13%, respectively, at
September 30, 2017. Not included in the allowance at
June 30, 2018, was $2.3 million in yield and credit discounts
on the acquired loans from CBS and Resurgens. At June 30,
2018, the allowance for loan losses was 1.15% of legacy loans,
compared to 1.22% at September 30, 2017. The Company recorded
net loan recoveries of $386,000 and $768,000 in its allowance for
loan losses for the three and nine months
ended June 30, 2018, respectively, compared with net loan
recoveries of $296,000 and $1.3 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 repurchased 8.1
million shares, or 35.6%, of its common stock, for $91.9 million.
The Company repurchased no shares during the quarter ended
June 30, 2018.
During the quarter ended June 30, 2018, the
Company paid a $0.085 per share dividend, the seventh consecutive
quarterly dividend increase. The Company's equity as a percent of
total assets was 13.80% at June 30, 2018, as compared to
13.06% at September 30, 2017, while the Company's tangible
common equity ratio, a non-GAAP measure (see Reconciliation of
Non-GAAP Measures for further information), was 11.49% at
June 30, 2018, up from 10.72% at September 30, 2017.
"We are proud of the CharterBank team. Their
work to build balance sheet scale and stability with a customer-
and community-driven focus has led to a profitable, attractive
franchise," Mr. Johnson concluded.
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; business
disruption as a result of the Company's pending merger with
CenterState; diversion of management's time on issues relating to
the merger; the failure to complete the merger with CenterState on
a timely basis or at all; fluctuations in CenterState's stock price
prior to the completion of the merger; the reaction of our
customers and employees to the merger; 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, 2017. 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, 2018 |
|
September 30, 2017 (1) |
Assets |
Cash and amounts due
from depository institutions |
$ |
20,328,705 |
|
|
$ |
25,455,465 |
|
Interest-earning
deposits in other financial institutions |
150,570,173 |
|
|
126,882,924 |
|
Cash and
cash equivalents |
170,898,878 |
|
|
152,338,389 |
|
Loans held for sale,
fair value of $1,998,594 and $1,998,988 |
1,965,657 |
|
|
1,961,185 |
|
Certificates of deposit
held at other financial institutions |
4,027,270 |
|
|
7,514,630 |
|
Investment securities
available for sale |
157,232,405 |
|
|
183,789,821 |
|
Federal Home Loan Bank
stock |
4,075,200 |
|
|
4,054,400 |
|
Restricted securities,
at cost |
279,000 |
|
|
279,000 |
|
Loans receivable |
1,164,306,803 |
|
|
1,161,519,752 |
|
Unamortized loan
origination fees, net |
(1,284,342 |
) |
|
(1,165,148 |
) |
Allowance for loan
losses |
(11,496,661 |
) |
|
(11,078,422 |
) |
Loans
receivable, net |
1,151,525,800 |
|
|
1,149,276,182 |
|
Other real estate
owned |
227,531 |
|
|
1,437,345 |
|
Accrued interest and
dividends receivable |
4,354,702 |
|
|
4,197,708 |
|
Premises and equipment,
net |
28,857,528 |
|
|
29,578,513 |
|
Goodwill |
39,347,378 |
|
|
39,347,378 |
|
Other intangible
assets, net of amortization |
3,064,830 |
|
|
3,614,833 |
|
Cash surrender value of
life insurance |
54,546,197 |
|
|
53,516,317 |
|
Deferred income
taxes |
3,876,928 |
|
|
5,970,282 |
|
Other assets |
1,555,998 |
|
|
3,282,577 |
|
Total
assets |
$ |
1,625,835,302 |
|
|
$ |
1,640,158,560 |
|
Liabilities and Stockholders’
Equity |
Liabilities: |
|
|
|
Deposits |
$ |
1,317,738,045 |
|
|
$ |
1,339,143,287 |
|
Short-term borrowings |
5,010,175 |
|
|
— |
|
Long-term
borrowings |
55,000,925 |
|
|
60,023,100 |
|
Floating
rate junior subordinated debt |
6,827,470 |
|
|
6,724,646 |
|
Advance
payments by borrowers for taxes and insurance |
2,366,262 |
|
|
2,956,441 |
|
Other
liabilities |
14,485,773 |
|
|
17,112,581 |
|
Total
liabilities |
1,401,428,650 |
|
|
1,425,960,055 |
|
Stockholders’
equity: |
|
|
|
Common
stock, $0.01 par value; 15,262,472 shares issued and outstanding at
June 30, 2018 and 15,115,883 shares issued and outstanding at
September 30, 2017 |
152,625 |
|
|
151,159 |
|
Preferred
stock, $0.01 par value; 50,000,000 shares authorized at June 30,
2018 and September 30, 2017 |
— |
|
|
— |
|
Additional paid-in capital |
86,569,306 |
|
|
85,651,391 |
|
Unearned
compensation – ESOP |
(4,192,308 |
) |
|
(4,673,761 |
) |
Retained
earnings |
145,268,886 |
|
|
134,207,368 |
|
Accumulated other comprehensive loss |
(3,391,857 |
) |
|
(1,137,652 |
) |
Total
stockholders’ equity |
224,406,652 |
|
|
214,198,505 |
|
Total
liabilities and stockholders’ equity |
$ |
1,625,835,302 |
|
|
$ |
1,640,158,560 |
|
(1) Financial information at September 30, 2017 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, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Interest income: |
|
|
|
|
|
|
|
Loans
receivable |
$ |
15,168,739 |
|
|
$ |
12,276,095 |
|
|
$ |
45,043,315 |
|
|
$ |
36,749,414 |
|
Taxable
investment securities |
1,021,648 |
|
|
1,036,572 |
|
|
3,081,621 |
|
|
3,236,212 |
|
Nontaxable investment securities |
3,274 |
|
|
4,571 |
|
|
9,822 |
|
|
13,714 |
|
Federal
Home Loan Bank stock |
57,813 |
|
|
39,913 |
|
|
161,744 |
|
|
119,432 |
|
Interest-earning deposits in other financial institutions |
612,023 |
|
|
235,928 |
|
|
1,459,216 |
|
|
560,055 |
|
Certificates of deposit held at other financial institutions |
17,079 |
|
|
30,953 |
|
|
62,714 |
|
|
112,357 |
|
Restricted securities |
3,481 |
|
|
2,855 |
|
|
9,779 |
|
|
8,107 |
|
Total
interest income |
16,884,057 |
|
|
13,626,887 |
|
|
49,828,211 |
|
|
40,799,291 |
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
1,596,469 |
|
|
1,182,649 |
|
|
4,534,057 |
|
|
3,506,425 |
|
Borrowings |
367,493 |
|
|
327,790 |
|
|
1,102,532 |
|
|
1,077,644 |
|
Floating
rate junior subordinated debt |
149,807 |
|
|
129,051 |
|
|
427,674 |
|
|
373,473 |
|
Total
interest expense |
2,113,769 |
|
|
1,639,490 |
|
|
6,064,263 |
|
|
4,957,542 |
|
Net
interest income |
14,770,288 |
|
|
11,987,397 |
|
|
43,763,948 |
|
|
35,841,749 |
|
Provision
for loan losses |
— |
|
|
— |
|
|
(350,000 |
) |
|
(900,000 |
) |
Net
interest income after provision for loan losses |
14,770,288 |
|
|
11,987,397 |
|
|
44,113,948 |
|
|
36,741,749 |
|
Noninterest
income: |
|
|
|
|
|
|
|
Service
charges on deposit accounts |
2,097,870 |
|
|
1,972,205 |
|
|
6,194,239 |
|
|
5,560,729 |
|
Bankcard
fees |
1,690,450 |
|
|
1,443,151 |
|
|
4,692,182 |
|
|
4,092,195 |
|
Gain on
investment securities available for sale |
— |
|
|
— |
|
|
1,074 |
|
|
247,780 |
|
Gain
(loss) on sale of other assets held for sale |
— |
|
|
— |
|
|
265,806 |
|
|
(38,528 |
) |
Bank
owned life insurance |
338,992 |
|
|
305,709 |
|
|
1,029,880 |
|
|
884,976 |
|
Gain on
sale of loans |
563,567 |
|
|
542,762 |
|
|
1,640,090 |
|
|
1,816,848 |
|
Brokerage
commissions |
216,770 |
|
|
185,674 |
|
|
552,308 |
|
|
576,237 |
|
Recoveries on acquired loans previously covered under FDIC-assisted
acquisitions |
— |
|
|
— |
|
|
— |
|
|
250,000 |
|
Other |
316,557 |
|
|
189,996 |
|
|
1,203,168 |
|
|
778,261 |
|
Total
noninterest income |
5,224,206 |
|
|
4,639,497 |
|
|
15,578,747 |
|
|
14,168,498 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
7,049,321 |
|
|
6,530,408 |
|
|
20,429,841 |
|
|
18,742,656 |
|
Occupancy |
1,549,444 |
|
|
1,156,618 |
|
|
4,580,138 |
|
|
3,699,807 |
|
Data
processing |
1,279,244 |
|
|
1,091,208 |
|
|
3,681,398 |
|
|
3,004,137 |
|
Legal and
professional |
293,820 |
|
|
384,240 |
|
|
834,637 |
|
|
1,055,985 |
|
Marketing |
437,717 |
|
|
383,890 |
|
|
1,245,999 |
|
|
1,152,357 |
|
Federal
insurance premiums and other regulatory fees |
203,648 |
|
|
198,350 |
|
|
699,604 |
|
|
561,106 |
|
Net cost
(benefit) of operations of real estate owned |
8,307 |
|
|
18,079 |
|
|
(40,667 |
) |
|
(327,365 |
) |
Furniture
and equipment |
242,536 |
|
|
202,259 |
|
|
787,919 |
|
|
604,696 |
|
Postage,
office supplies and printing |
201,526 |
|
|
224,073 |
|
|
646,850 |
|
|
717,775 |
|
Core
deposit intangible amortization expense |
168,501 |
|
|
117,806 |
|
|
550,003 |
|
|
420,902 |
|
Merger-related expenses |
843,887 |
|
|
131 |
|
|
1,770,517 |
|
|
131 |
|
Other |
989,002 |
|
|
790,073 |
|
|
2,687,898 |
|
|
2,504,167 |
|
Total
noninterest expenses |
13,266,953 |
|
|
11,097,135 |
|
|
37,874,137 |
|
|
32,136,354 |
|
Income
before income taxes |
6,727,541 |
|
|
5,529,759 |
|
|
21,818,558 |
|
|
18,773,893 |
|
Income
tax expense |
2,081,428 |
|
|
2,015,909 |
|
|
7,525,933 |
|
|
6,897,581 |
|
Net
income |
$ |
4,646,113 |
|
|
$ |
3,513,850 |
|
|
$ |
14,292,625 |
|
|
$ |
11,876,312 |
|
Basic net income per
share |
$ |
0.32 |
|
|
$ |
0.24 |
|
|
$ |
0.99 |
|
|
$ |
0.83 |
|
Diluted net income per
share |
$ |
0.30 |
|
|
$ |
0.23 |
|
|
$ |
0.94 |
|
|
$ |
0.78 |
|
Weighted average number
of common shares outstanding |
14,544,417 |
|
|
14,353,082 |
|
|
14,490,993 |
|
|
14,293,859 |
|
Weighted average number
of common and potential common shares outstanding |
15,413,155 |
|
|
15,256,623 |
|
|
15,263,528 |
|
|
15,197,400 |
|
Charter Financial
CorporationSupplemental Financial Data
(unaudited)in thousands except per share data
|
Quarter to Date |
|
|
Year to Date |
|
6/30/2018 |
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 (1) |
|
6/30/2017 |
|
|
6/30/2018 |
|
6/30/2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
balance sheet data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,625,835 |
|
|
$ |
1,653,916 |
|
|
$ |
1,643,673 |
|
|
$ |
1,640,159 |
|
|
$ |
1,480,122 |
|
|
|
$ |
1,625,835 |
|
|
$ |
1,480,122 |
|
Cash and cash
equivalents |
170,899 |
|
|
179,401 |
|
|
163,143 |
|
|
152,338 |
|
|
120,144 |
|
|
|
170,899 |
|
|
120,144 |
|
Loans receivable,
net |
1,151,526 |
|
|
1,151,885 |
|
|
1,151,314 |
|
|
1,149,276 |
|
|
1,032,108 |
|
|
|
1,151,526 |
|
|
1,032,108 |
|
Other real estate
owned |
228 |
|
|
303 |
|
|
1,244 |
|
|
1,437 |
|
|
1,938 |
|
|
|
228 |
|
|
1,938 |
|
Securities available
for sale |
157,232 |
|
|
174,536 |
|
|
180,205 |
|
|
183,790 |
|
|
187,655 |
|
|
|
157,232 |
|
|
187,655 |
|
Transaction
accounts |
579,962 |
|
|
595,216 |
|
|
574,682 |
|
|
567,213 |
|
|
510,810 |
|
|
|
579,962 |
|
|
510,810 |
|
Total deposits |
1,317,738 |
|
|
1,349,261 |
|
|
1,343,997 |
|
|
1,339,143 |
|
|
1,194,254 |
|
|
|
1,317,738 |
|
|
1,194,254 |
|
Borrowings |
66,839 |
|
|
66,808 |
|
|
66,778 |
|
|
66,748 |
|
|
56,690 |
|
|
|
66,839 |
|
|
56,690 |
|
Total stockholders’
equity |
224,407 |
|
|
221,587 |
|
|
218,187 |
|
|
214,199 |
|
|
212,080 |
|
|
|
224,407 |
|
|
212,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
earnings summary: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
16,884 |
|
|
$ |
16,664 |
|
|
$ |
16,280 |
|
|
$ |
15,062 |
|
|
$ |
13,626 |
|
|
|
$ |
49,828 |
|
|
$ |
40,799 |
|
Interest expense |
2,114 |
|
|
1,978 |
|
|
1,973 |
|
|
1,762 |
|
|
1,639 |
|
|
|
6,064 |
|
|
4,957 |
|
Net
interest income |
14,770 |
|
|
14,686 |
|
|
14,307 |
|
|
13,300 |
|
|
11,987 |
|
|
|
43,764 |
|
|
35,842 |
|
Provision for loan
losses |
— |
|
|
(350 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
(350 |
) |
|
(900 |
) |
Net
interest income after provision for loan losses |
14,770 |
|
|
15,036 |
|
|
14,307 |
|
|
13,300 |
|
|
11,987 |
|
|
|
44,114 |
|
|
36,742 |
|
Noninterest income |
5,224 |
|
|
4,963 |
|
|
5,391 |
|
|
5,070 |
|
|
4,639 |
|
|
|
15,579 |
|
|
14,168 |
|
Noninterest
expense |
13,267 |
|
|
12,735 |
|
|
11,870 |
|
|
14,386 |
|
|
11,096 |
|
|
|
37,874 |
|
|
32,136 |
|
Income tax expense |
2,081 |
|
|
2,014 |
|
|
3,431 |
|
|
1,424 |
|
|
2,016 |
|
|
|
7,526 |
|
|
6,898 |
|
Net
income |
$ |
4,646 |
|
|
$ |
5,250 |
|
|
$ |
4,397 |
|
|
$ |
2,560 |
|
|
$ |
3,514 |
|
|
|
$ |
14,293 |
|
|
$ |
11,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic |
$ |
0.32 |
|
|
$ |
0.36 |
|
|
$ |
0.31 |
|
|
$ |
0.18 |
|
|
$ |
0.24 |
|
|
|
$ |
0.99 |
|
|
$ |
0.83 |
|
Earnings per share –
fully diluted |
$ |
0.30 |
|
|
$ |
0.34 |
|
|
$ |
0.29 |
|
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
|
$ |
0.94 |
|
|
$ |
0.78 |
|
Cash dividends per
share |
$ |
0.085 |
|
|
$ |
0.080 |
|
|
$ |
0.075 |
|
|
$ |
0.070 |
|
|
$ |
0.065 |
|
|
|
$ |
0.240 |
|
|
$ |
0.180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares |
14,544 |
|
|
14,521 |
|
|
14,408 |
|
|
14,384 |
|
|
14,353 |
|
|
|
14,491 |
|
|
14,294 |
|
Weighted average
diluted shares |
15,413 |
|
|
15,372 |
|
|
15,236 |
|
|
15,241 |
|
|
15,257 |
|
|
|
15,264 |
|
|
15,197 |
|
Total shares
outstanding |
15,262 |
|
|
15,138 |
|
|
15,132 |
|
|
15,116 |
|
|
15,112 |
|
|
|
15,262 |
|
|
15,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
$ |
14.70 |
|
|
$ |
14.64 |
|
|
$ |
14.42 |
|
|
$ |
14.17 |
|
|
$ |
14.03 |
|
|
|
$ |
14.70 |
|
|
$ |
14.03 |
|
Tangible book value per
share (2) |
$ |
11.92 |
|
|
$ |
11.83 |
|
|
$ |
11.59 |
|
|
$ |
11.33 |
|
|
$ |
11.92 |
|
|
|
$ |
11.92 |
|
|
$ |
11.92 |
|
(1) Financial information at and for the year ended
September 30, 2017 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 |
|
6/30/2018 |
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 |
|
6/30/2017 |
|
|
6/30/2018 |
|
6/30/2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4
family residential real estate |
$ |
246,591 |
|
|
$ |
246,513 |
|
|
$ |
224,829 |
|
|
$ |
232,040 |
|
|
$ |
222,904 |
|
|
|
$ |
246,591 |
|
|
$ |
222,904 |
|
Commercial real estate |
676,399 |
|
|
682,151 |
|
|
698,906 |
|
|
697,071 |
|
|
624,926 |
|
|
|
676,399 |
|
|
624,926 |
|
Commercial |
102,936 |
|
|
106,099 |
|
|
106,669 |
|
|
103,673 |
|
|
79,695 |
|
|
|
102,936 |
|
|
79,695 |
|
Real
estate construction |
101,570 |
|
|
91,739 |
|
|
94,142 |
|
|
88,792 |
|
|
75,941 |
|
|
|
101,570 |
|
|
75,941 |
|
Consumer
and other |
36,811 |
|
|
37,462 |
|
|
38,902 |
|
|
39,944 |
|
|
40,675 |
|
|
|
36,811 |
|
|
40,675 |
|
Total
loans receivable |
$ |
1,164,307 |
|
|
$ |
1,163,964 |
|
|
$ |
1,163,448 |
|
|
$ |
1,161,520 |
|
|
$ |
1,044,141 |
|
|
|
$ |
1,164,307 |
|
|
$ |
1,044,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of period |
$ |
11,111 |
|
|
$ |
11,114 |
|
|
$ |
11,078 |
|
|
$ |
10,800 |
|
|
$ |
10,505 |
|
|
|
$ |
11,078 |
|
|
$ |
10,371 |
|
Charge-offs |
(28 |
) |
|
(233 |
) |
|
(267 |
) |
|
(76 |
) |
|
(73 |
) |
|
|
(527 |
) |
|
(226 |
) |
Recoveries |
414 |
|
|
580 |
|
|
303 |
|
|
354 |
|
|
368 |
|
|
|
1,296 |
|
|
1,555 |
|
Provision |
— |
|
|
(350 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
(350 |
) |
|
(900 |
) |
Balance
at end of period |
$ |
11,497 |
|
|
$ |
11,111 |
|
|
$ |
11,114 |
|
|
$ |
11,078 |
|
|
$ |
10,800 |
|
|
|
$ |
11,497 |
|
|
$ |
10,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
assets: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
1,367 |
|
|
$ |
1,304 |
|
|
$ |
1,600 |
|
|
$ |
1,661 |
|
|
$ |
1,549 |
|
|
|
$ |
1,367 |
|
|
$ |
1,549 |
|
Loans
delinquent 90 days or greater and still accruing |
241 |
|
|
119 |
|
|
332 |
|
|
46 |
|
|
291 |
|
|
|
241 |
|
|
291 |
|
Total
nonperforming loans |
1,608 |
|
|
1,423 |
|
|
1,932 |
|
|
1,707 |
|
|
1,840 |
|
|
|
1,608 |
|
|
1,840 |
|
Other
real estate owned |
228 |
|
|
303 |
|
|
1,244 |
|
|
1,437 |
|
|
1,938 |
|
|
|
228 |
|
|
1,938 |
|
Total
nonperforming assets |
$ |
1,836 |
|
|
$ |
1,725 |
|
|
$ |
3,177 |
|
|
$ |
3,144 |
|
|
$ |
3,778 |
|
|
|
$ |
1,836 |
|
|
$ |
3,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructuring: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled
debt restructurings - accruing |
$ |
3,875 |
|
|
$ |
4,051 |
|
|
$ |
4,368 |
|
|
$ |
4,951 |
|
|
$ |
5,007 |
|
|
|
$ |
3,875 |
|
|
$ |
5,007 |
|
Troubled
debt restructurings - nonaccrual |
373 |
|
|
175 |
|
|
90 |
|
|
92 |
|
|
107 |
|
|
|
373 |
|
|
107 |
|
Total
troubled debt restructurings |
$ |
4,248 |
|
|
$ |
4,226 |
|
|
$ |
4,458 |
|
|
$ |
5,043 |
|
|
$ |
5,114 |
|
|
|
$ |
4,248 |
|
|
$ |
5,114 |
|
(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 at the
acquisition date are excluded from this table.
Charter Financial
CorporationSupplemental Information
(unaudited)
|
Quarter to Date |
|
|
Year to Date |
|
6/30/2018 |
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 |
|
6/30/2017 |
|
|
6/30/2018 |
|
6/30/2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on equity
(annualized) |
8.29 |
% |
|
9.56 |
% |
|
8.10 |
% |
|
4.77 |
% |
|
6.65 |
% |
|
|
8.65 |
% |
|
7.62 |
% |
Return on tangible
equity (annualized) (1) |
10.23 |
% |
|
11.86 |
% |
|
10.10 |
% |
|
5.72 |
% |
|
7.84 |
% |
|
|
10.73 |
% |
|
9.02 |
% |
Return on assets
(annualized) |
1.14 |
% |
|
1.29 |
% |
|
1.08 |
% |
|
0.67 |
% |
|
0.96 |
% |
|
|
1.17 |
% |
|
1.08 |
% |
Net interest margin
(annualized) |
3.98 |
% |
|
3.98 |
% |
|
3.87 |
% |
|
3.85 |
% |
|
3.60 |
% |
|
|
3.94 |
% |
|
3.61 |
% |
Impact of purchase
accounting on net interest margin (2) |
0.17 |
% |
|
0.23 |
% |
|
0.10 |
% |
|
0.14 |
% |
|
0.05 |
% |
|
|
0.16 |
% |
|
0.13 |
% |
Holding company tier 1
leverage ratio (3) |
12.01 |
% |
|
11.83 |
% |
|
11.55 |
% |
|
12.05 |
% |
|
13.08 |
% |
|
|
12.01 |
% |
|
13.08 |
% |
Holding company total
risk-based capital ratio (3) |
16.64 |
% |
|
16.14 |
% |
|
15.90 |
% |
|
15.79 |
% |
|
17.98 |
% |
|
|
16.64 |
% |
|
17.98 |
% |
Bank tier 1 leverage
ratio (3) (4) |
11.29 |
% |
|
10.94 |
% |
|
10.57 |
% |
|
10.96 |
% |
|
12.06 |
% |
|
|
11.29 |
% |
|
12.06 |
% |
Bank total risk-based
capital ratio (3) |
15.70 |
% |
|
14.98 |
% |
|
14.61 |
% |
|
14.45 |
% |
|
16.67 |
% |
|
|
15.70 |
% |
|
16.67 |
% |
Effective tax rate
(5) |
30.94 |
% |
|
27.73 |
% |
|
43.83 |
% |
|
35.75 |
% |
|
36.46 |
% |
|
|
34.49 |
% |
|
36.74 |
% |
Yield on loans |
5.22 |
% |
|
5.21 |
% |
|
5.10 |
% |
|
5.04 |
% |
|
4.79 |
% |
|
|
5.18 |
% |
|
4.84 |
% |
Cost of deposits |
0.59 |
% |
|
0.54 |
% |
|
0.53 |
% |
|
0.50 |
% |
|
0.47 |
% |
|
|
0.55 |
% |
|
0.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality ratios:
(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a % of total loans (7) |
0.99 |
% |
|
0.96 |
% |
|
0.96 |
% |
|
0.96 |
% |
|
1.04 |
% |
|
|
0.99 |
% |
|
1.04 |
% |
Allowance
for loan losses as a % of nonperforming loans |
714.79 |
% |
|
780.63 |
% |
|
575.09 |
% |
|
649.13 |
% |
|
586.83 |
% |
|
|
714.79 |
% |
|
586.83 |
% |
Nonperforming assets as a % of total loans and OREO |
0.16 |
% |
|
0.15 |
% |
|
0.27 |
% |
|
0.27 |
% |
|
0.36 |
% |
|
|
0.16 |
% |
|
0.36 |
% |
Nonperforming assets as a % of total assets |
0.11 |
% |
|
0.10 |
% |
|
0.19 |
% |
|
0.19 |
% |
|
0.26 |
% |
|
|
0.11 |
% |
|
0.26 |
% |
Net
charge-offs (recoveries) as a % of average loans (annualized) |
(0.13 |
)% |
|
(0.12 |
)% |
|
(0.01 |
)% |
|
(0.10 |
)% |
|
(0.12 |
)% |
|
|
(0.09 |
)% |
|
(0.17 |
)% |
(1) Non-GAAP financial measure, derived as net
income divided by average tangible equity.(2) Impact on net
interest margin when excluding accretion income and average balance
of accretable discounts.(3) Current period bank and holding company
capital ratios are estimated as of the date of this earnings
release.(4) 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.(5) Excluding the revaluation of the
Company's deferred tax asset, which resulted in additional charges
to income tax expense of $40,000, $49,000, and $1.4 million during
the three months ended June 30, 2018, March 31, 2018, and
December 31, 2017, respectively, the Company's effective tax rate
for the three months ended June 30, 2018, March 31, 2018,
and December 31, 2017 was 30.3%, 27.0% and 25.7%, respectively.(6)
Ratios for the three months ended June 30, 2018,
March 31, 2018, December 31, 2017, September 30,
2017, and June 30, 2017 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.(7) Excluding former CBS and Resurgens
loans totaling $163.2 million, $192.0 million, $224.8 million,
$254.2 million, and $154.0 million at June 30, 2018,
March 31, 2018, December 31, 2017, September 30,
2017, and June 30, 2017, respectively, which were recorded at
acquisition date fair value, the allowance approximated 1.15%,
1.15%, 1.19%, 1.22%, and 1.22%, of all other loans at June 30,
2018, March 31, 2018, December 31, 2017, September 30, 2017,
and June 30, 2017, respectively.
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands
|
Quarter to Date |
|
6/30/2018 |
|
6/30/2017 |
|
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 |
$ |
142,559 |
|
|
$ |
612 |
|
|
1.72 |
% |
|
$ |
102,944 |
|
|
$ |
236 |
|
|
0.92 |
% |
Certificates of deposit held at other financial institutions |
4,620 |
|
|
17 |
|
|
1.48 |
|
|
9,021 |
|
|
31 |
|
|
1.37 |
|
FHLB
common stock and other equity securities |
4,075 |
|
|
58 |
|
|
5.67 |
|
|
3,485 |
|
|
40 |
|
|
4.58 |
|
Taxable
investment securities |
170,653 |
|
|
1,022 |
|
|
2.39 |
|
|
188,138 |
|
|
1,037 |
|
|
2.20 |
|
Nontaxable investment securities (1) |
1,048 |
|
|
3 |
|
|
1.25 |
|
|
1,579 |
|
|
5 |
|
|
1.16 |
|
Restricted securities |
279 |
|
|
3 |
|
|
4.99 |
|
|
279 |
|
|
3 |
|
|
4.09 |
|
Loans
receivable (1)(2)(3)(4) |
1,162,944 |
|
|
14,593 |
|
|
5.02 |
|
|
1,025,454 |
|
|
12,103 |
|
|
4.72 |
|
Accretion, net, of acquired loan discounts (5) |
|
|
576 |
|
|
0.20 |
|
|
|
|
173 |
|
|
0.07 |
|
Total
interest-earning assets |
1,486,178 |
|
|
16,884 |
|
|
4.54 |
|
|
1,330,900 |
|
|
13,628 |
|
|
4.10 |
|
Total
noninterest-earning assets |
149,251 |
|
|
|
|
|
|
139,050 |
|
|
|
|
|
Total
assets |
$ |
1,635,429 |
|
|
|
|
|
|
$ |
1,469,950 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
278,553 |
|
|
$ |
128 |
|
|
0.18 |
% |
|
$ |
254,983 |
|
|
$ |
104 |
|
|
0.16 |
% |
Bank
rewarded checking |
57,574 |
|
|
29 |
|
|
0.20 |
|
|
54,845 |
|
|
27 |
|
|
0.20 |
|
Savings
accounts |
67,932 |
|
|
7 |
|
|
0.04 |
|
|
65,036 |
|
|
6 |
|
|
0.04 |
|
Money
market deposit accounts |
293,017 |
|
|
409 |
|
|
0.56 |
|
|
240,561 |
|
|
178 |
|
|
0.30 |
|
Certificate of deposit accounts |
387,921 |
|
|
1,023 |
|
|
1.06 |
|
|
381,863 |
|
|
868 |
|
|
0.91 |
|
Total
interest-bearing deposits |
1,084,997 |
|
|
1,596 |
|
|
0.59 |
|
|
997,288 |
|
|
1,183 |
|
|
0.47 |
|
Borrowed
funds |
60,014 |
|
|
368 |
|
|
2.45 |
|
|
50,000 |
|
|
328 |
|
|
2.62 |
|
Floating
rate junior subordinated debt |
6,805 |
|
|
150 |
|
|
8.81 |
|
|
6,668 |
|
|
129 |
|
|
7.74 |
|
Total
interest-bearing liabilities |
1,151,816 |
|
|
2,114 |
|
|
0.73 |
|
|
1,053,956 |
|
|
1,640 |
|
|
0.62 |
|
Noninterest-bearing deposits |
242,184 |
|
|
|
|
|
|
187,354 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
17,333 |
|
|
|
|
|
|
17,345 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
259,517 |
|
|
|
|
|
|
204,699 |
|
|
|
|
|
Total
liabilities |
1,411,333 |
|
|
|
|
|
|
1,258,655 |
|
|
|
|
|
Total
stockholders' equity |
224,096 |
|
|
|
|
|
|
211,295 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
1,635,429 |
|
|
|
|
|
|
$ |
1,469,950 |
|
|
|
|
|
Net
interest income |
|
|
$ |
14,770 |
|
|
|
|
|
|
$ |
11,988 |
|
|
|
Net
interest earning assets (6) |
|
|
$ |
334,362 |
|
|
|
|
|
|
$ |
276,944 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.81 |
% |
|
|
|
|
|
3.47 |
% |
Net
interest margin (8) |
|
|
|
|
3.98 |
% |
|
|
|
|
|
3.60 |
% |
Impact of
purchase accounting on net interest margin (9) |
|
|
|
|
0.17 |
% |
|
|
|
|
|
0.05 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
129.03 |
% |
|
|
|
|
|
126.28 |
% |
(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) Impact on net interest margin when excluding accretion
income and average accretable discounts.(10) Annualized.
Charter Financial
CorporationAverage Balances, Interest Rates and
Yields (unaudited)dollars in thousands
|
Fiscal Year to Date |
|
6/30/2018 |
|
6/30/2017 |
|
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 |
$ |
131,770 |
|
|
$ |
1,459 |
|
|
1.48 |
% |
|
$ |
102,615 |
|
|
$ |
560 |
|
|
0.73 |
% |
Certificates of deposit held at other financial institutions |
5,785 |
|
|
63 |
|
|
1.45 |
|
|
11,427 |
|
|
112 |
|
|
1.31 |
|
FHLB
common stock and other equity securities |
4,062 |
|
|
162 |
|
|
5.31 |
|
|
3,413 |
|
|
119 |
|
|
4.67 |
|
Taxable
investment securities |
177,498 |
|
|
3,082 |
|
|
2.32 |
|
|
192,986 |
|
|
3,236 |
|
|
2.24 |
|
Nontaxable investment securities (1) |
1,056 |
|
|
10 |
|
|
1.24 |
|
|
1,588 |
|
|
14 |
|
|
1.15 |
|
Restricted securities |
279 |
|
|
10 |
|
|
4.67 |
|
|
279 |
|
|
8 |
|
|
3.87 |
|
Loans
receivable (1)(2)(3)(4) |
1,160,135 |
|
|
43,332 |
|
|
4.98 |
|
|
1,011,408 |
|
|
35,495 |
|
|
4.68 |
|
Accretion
and amortization of acquired loan discounts (5) |
|
|
1,710 |
|
|
0.20 |
|
|
|
|
1,255 |
|
|
0.17 |
|
Total
interest-earning assets |
1,480,585 |
|
|
49,828 |
|
|
4.49 |
|
|
1,323,716 |
|
|
40,799 |
|
|
4.11 |
|
Total
noninterest-earning assets |
153,537 |
|
|
|
|
|
|
136,939 |
|
|
|
|
|
Total
assets |
$ |
1,634,122 |
|
|
|
|
|
|
$ |
1,460,655 |
|
|
|
|
|
Liabilities and
Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing checking |
$ |
277,661 |
|
|
$ |
376 |
|
|
0.18 |
% |
|
$ |
252,401 |
|
|
$ |
283 |
|
|
0.15 |
% |
Bank
rewarded checking |
55,600 |
|
|
83 |
|
|
0.20 |
|
|
53,409 |
|
|
78 |
|
|
0.19 |
|
Savings
accounts |
66,995 |
|
|
20 |
|
|
0.04 |
|
|
63,302 |
|
|
19 |
|
|
0.04 |
|
Money
market deposit accounts |
289,970 |
|
|
1,055 |
|
|
0.49 |
|
|
251,773 |
|
|
567 |
|
|
0.30 |
|
Certificate of deposit accounts |
401,908 |
|
|
3,000 |
|
|
1.00 |
|
|
381,010 |
|
|
2,559 |
|
|
0.90 |
|
Total
interest-bearing deposits |
1,092,134 |
|
|
4,534 |
|
|
0.55 |
|
|
1,001,895 |
|
|
3,506 |
|
|
0.47 |
|
Borrowed
funds |
60,021 |
|
|
1,102 |
|
|
2.45 |
|
|
50,004 |
|
|
1,078 |
|
|
2.87 |
|
Floating
rate junior subordinated debt |
6,771 |
|
|
428 |
|
|
8.42 |
|
|
6,634 |
|
|
373 |
|
|
7.51 |
|
Total
interest-bearing liabilities |
1,158,926 |
|
|
6,064 |
|
|
0.70 |
|
|
1,058,533 |
|
|
4,957 |
|
|
0.62 |
|
Noninterest-bearing deposits |
237,589 |
|
|
|
|
|
|
178,159 |
|
|
|
|
|
Other
noninterest-bearing liabilities |
17,339 |
|
|
|
|
|
|
16,087 |
|
|
|
|
|
Total
noninterest-bearing liabilities |
254,928 |
|
|
|
|
|
|
194,246 |
|
|
|
|
|
Total
liabilities |
1,413,854 |
|
|
|
|
|
|
1,252,779 |
|
|
|
|
|
Total
stockholders' equity |
220,268 |
|
|
|
|
|
|
207,876 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
1,634,122 |
|
|
|
|
|
|
$ |
1,460,655 |
|
|
|
|
|
Net
interest income |
|
|
$ |
43,764 |
|
|
|
|
|
|
$ |
35,842 |
|
|
|
Net
interest earning assets (6) |
|
|
$ |
321,659 |
|
|
|
|
|
|
$ |
265,183 |
|
|
|
Net
interest rate spread (7) |
|
|
|
|
3.79 |
% |
|
|
|
|
|
3.49 |
% |
Net
interest margin (8) |
|
|
|
|
3.94 |
% |
|
|
|
|
|
3.61 |
% |
Impact of
purchase accounting on net interest margin (9) |
|
|
|
|
0.16 |
% |
|
|
|
|
|
0.13 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
127.75 |
% |
|
|
|
|
|
125.05 |
% |
(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) Impact on net interest margin when excluding accretion
income and average accretable discounts.(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 tangible
book value per share, tangible common equity ratio, and return on
average tangible equity, in its analysis of the Company's
performance. 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 |
|
6/30/2018 |
|
3/31/2018 |
|
12/31/2017 |
|
9/30/2017 |
|
6/30/2017 |
Tangible Book
Value Per Share |
|
|
|
|
|
|
|
|
|
Book
value per share |
$ |
14.70 |
|
|
$ |
14.64 |
|
|
$ |
14.42 |
|
|
$ |
14.17 |
|
|
$ |
14.03 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.78 |
) |
|
(2.81 |
) |
|
(2.83 |
) |
|
(2.84 |
) |
|
(2.11 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.92 |
|
|
$ |
11.83 |
|
|
$ |
11.59 |
|
|
$ |
11.33 |
|
|
$ |
11.92 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity Ratio |
|
|
|
|
|
|
|
|
|
Total
equity to total assets |
13.80 |
% |
|
13.40 |
% |
|
13.27 |
% |
|
13.06 |
% |
|
14.33 |
% |
Effect to
adjust for goodwill and other intangible assets |
(2.31 |
) |
|
(2.29 |
) |
|
(2.31 |
) |
|
(2.34 |
) |
|
(1.90 |
) |
Tangible
common equity ratio (Non-GAAP) |
11.49 |
% |
|
11.11 |
% |
|
10.96 |
% |
|
10.72 |
% |
|
12.43 |
% |
|
|
|
|
|
|
|
|
|
|
Return On
Average Tangible Equity |
|
|
|
|
|
|
|
|
|
Return on
average equity |
8.29 |
% |
|
9.56 |
% |
|
8.10 |
% |
|
4.77 |
% |
|
6.65 |
% |
Effect to
adjust for goodwill and other intangible assets |
1.94 |
|
|
2.30 |
|
|
2.00 |
|
|
0.95 |
|
|
1.19 |
|
Return on
average tangible equity (Non-GAAP) |
10.23 |
% |
|
11.86 |
% |
|
10.10 |
% |
|
5.72 |
% |
|
7.84 |
% |
|
For the Nine Months Ended |
|
6/30/2018 |
|
6/30/2017 |
Tangible Book
Value Per Share |
|
|
|
Book
value per share |
$ |
14.70 |
|
|
$ |
14.03 |
|
Effect to
adjust for goodwill and other intangible assets |
(2.78 |
) |
|
(2.11 |
) |
Tangible
book value per share (Non-GAAP) |
$ |
11.92 |
|
|
$ |
11.92 |
|
|
|
|
|
Tangible Common
Equity Ratio |
|
|
|
Total
equity to total assets |
13.80 |
% |
|
14.33 |
% |
Effect to
adjust for goodwill and other intangible assets |
(2.31 |
) |
|
(1.90 |
) |
Tangible
common equity ratio (Non-GAAP) |
11.49 |
% |
|
12.43 |
% |
|
|
|
|
Return On
Average Tangible Equity |
|
|
|
Return on
average equity |
8.65 |
% |
|
7.62 |
% |
Effect to
adjust for goodwill and other intangible assets |
2.08 |
|
|
1.40 |
|
Return on
average tangible equity (Non-GAAP) |
10.73 |
% |
|
9.02 |
% |
Contact:Robert L. Johnson, Chairman & CEOCurt Kollar,
CFO706-645-1391bjohnson@charterbank.net
orckollar@charterbank.netDresner Corporate ServicesSteve
Carr312-780-7211scarr@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