Charter Financial Announces Fiscal 2013 Earnings of $6.3 Million, an Increase of 25.7%

Charter Financial Announces Fiscal 2013 Earnings of $6.3 Million, an Increase
of 25.7%

  *Total equity to assets of 25.13%
  *Noncovered loan growth of 10.10%
  *Noninterest expense 9.9% lower than prior year
  *Nonperforming noncovered assets at 0.49% of total noncovered assets
  *Basic and diluted EPS of $0.30 for the year

WEST POINT, Ga., Nov. 8, 2013 (GLOBE NEWSWIRE) -- Charter Financial
Corporation (the "Company") (Nasdaq:CHFN) today reported net income of $6.3
million, or $0.30 per basic and diluted share for the year ended September 30,
2013, an improvement from $5.0 million, or $0.26 per basic and diluted share,
for the year ended September 30, 2012. For the quarter ended September 30,
2013 net income was $0.9 million, or $0.04 per basic and diluted share,
compared with $1.8 million, or $0.09 per basic and diluted share, for the
quarter ended September 30, 2012.

The Company's total assets were $1.1 billion at September 30, 2013, an
increase of $57.2 million from September 30, 2012. Total stockholders' equity
grew to $273.8 million at September30, 2013 from $142.5 million at
September30, 2012 due to the completion of the conversion to a full stock
company from the mutual holding company structure. Net non-covered loans grew
$43.2 million, or 10.10%, to $470.9 million at September30, 2013 from $427.7
million at September30, 2012. At September30, 2013, $109.0 million of net
loans receivable were covered by FDIC loss sharing, down from $166.2 million
at September30, 2012. Of the remaining $109.0 million of loans covered by
loss sharing, $21.4 million are considered problem loans and are handled by
the Company's special assets group with the remaining $87.6 million generally
considered "pass" credits.

Chairman and CEO Robert L. Johnson said, "This was a progressive year for
Charter Financial as we successfully completed the conversion to a full-stock
company, enhanced financial results, and ended the year with a robust capital
position. Further, we are pleased with the non-covered loan growth for the
year and, particularly for the quarter ended September 30, 2013, that the
legacy loan growth exceeded the covered loan run-off. We hope these trends
continue, thereby allowing us to invest some of the liquidity acquired in the
FDIC-assisted acquisitions. We continue to face headwinds as our purchased
loan discount accretion declines. Accordingly, achieving loan growth is a key
component of our strategy to replace income."

Total deposits were $751.3 million at September30, 2013 compared with $800.3
million at September30, 2012. Core deposits increased to $475.4 million at
September30, 2013 from $456.3 million at September30, 2012. Total deposits
were lower at September30, 2013 due to decreases of $15.5 million in
wholesale time deposits and $52.6 million in non-wholesale time deposits.
Borrowings decreased to $60.0 million at September30, 2013 from $81.0 million
at September30, 2012.

Net interest income decreased to $35.3 million for the year ended
September30, 2013, from $37.5 million for the year ended September30, 2012.
Total interest income decreased to $42.6 million for the year ended
September30, 2013, compared to $48.1 million for the year ended September30,
2012 primarily as a result of a decrease in the average loan balances.
Interest expense decreased to $7.4 million for the year ended September30,
2013, compared to $10.6 million for the year ended September30, 2012,
primarily as a result of lower expenses on certificates of deposit and
borrowings. The average balance of certificates of deposit decreased $76.1
million and the average yield decreased 0.28%.

Net interest margin decreased to 3.82% for the year ended September30, 2013,
compared with 4.17% for the year ended September30, 2012. The net interest
margin for the quarter ended September 30, 2013 was 3.44% compared to 4.09%
for the same quarter of the prior year. The net interest margin without
accretion for the quarter ended September30, 2013 was 2.68%.

Noninterest income decreased to $11.7 million for the year ended September30,
2013, compared to $12.9 million for the year ended September30, 2012.
Noninterest income was lower due to a decrease in FDIC indemnification asset
income of $1.4 million for the year ended September30, 2013, compared to the
year ended September30, 2012. The decrease in indemnification asset income
was partially due to reduced accretion and the remainder was due to
impairment. Fees on deposits increased to $7.8 million for the year ended
September30, 2013, compared to $7.0 million for the year ended September30,
2012.

Noninterest expense decreased to $36.3 million for the year ended
September30, 2013, compared to $40.3 million for the year ended September30,
2012. A decrease in net cost of REO contributed $1.1 million to the reduction.
Compensation expense decreased $0.9 million and marketing expense decreased
$0.6 million both due to increased 2012 costs related to acquisitions.

The Company recorded a loan loss provision of $1.4 million on non-covered
loans and $89,000 on covered loans for the year ended September30, 2013,
compared to $3.3 million on non-covered loans and $1.2 million on covered
loans for the year ended September30, 2012.

"We are delighted with the continued improvement in our asset quality.
Nonperforming assets not covered by FDIC loss-sharing stand at 0.49% of total
assets and our loan loss reserves are 1.70% of loans not covered by
loss-sharing. We continuously review our progress with the resolution of the
assets covered by loss sharing and are pleased with developments. We recorded
$0.6 million of indemnification asset impairment this year and have
approximately the same amount to amortize over the next year."

For the year ended September30, 2013, income tax expense was $2.9 million, or
an effective tax rate of 31.44%, compared to $639,000, or an effective tax
rate of 11.38% for the year ended September30, 2012. This increase was due
primarily to a lower than normal income tax expense for the year ended
September 30, 2012 related to an uncertain tax position that was resolved in
that year.

Mr. Johnson concluded, "We have continued challenges ahead but believe we are
well positioned to continue our momentum into 2014. Given the capital
management tools available to us and our new capital, we have opportunities
for long-term growth."

About Charter Financial Corporation

Charter Financial Corporation is a savings and loan holding company and the
parent company of CharterBank, a growing full-service community bank. On April
8, 2013, Charter Financial completed its conversion and reorganization from
the mutual holding company form of organization to the stock holding company
form of organization. CharterBank is headquartered in West Point, Georgia, and
operates branches in West Central Georgia, East Central Alabama, and the
Florida Gulf Coast. CharterBank's deposits are insured by the Federal Deposit
Insurance Corporation.

Forward-Looking Statements

This release contains "forward-looking statements" that may be identified by
use of such words as "believe," "expect," "anticipate," "should," "planned,"
"estimated," and "potential." Examples of forward-looking statements include,
but are not limited to, estimates with respect to our financial condition and
results of operation and business that are subject to various factors that
could cause actual results to differ materially from these estimates. These
factors include but are not limited to general and local economic conditions;
changes in interest rates, deposit flows, demand for mortgages and other
loans, real estate values, and competition; changes in accounting principles,
policies, or guidelines; changes in legislation or regulation; and other
economic, competitive, governmental, regulatory, and technological factors
affecting our operations, pricing, products, and services. Any or all
forward-looking statements in this release and in any other public statements
we make may turn out to be wrong. They can be affected by inaccurate
assumptions we might make or known or unknown risks and uncertainties.
Consequently, no forward-looking statements can be guaranteed. Except as
required by law, the Company disclaims any obligation to subsequently revise
or update any forward-looking statements to reflect events or circumstances
after the date of such statements or to reflect the occurrence of anticipated
or unanticipated events.

Charter Financial Corporation
Selected Financial Data (unaudited)
in thousands except share and per share data


                             September 30,    September 30,    June 30,
                             2013             2012 [(1)]      2013
                                                             
Total Assets                  $1,089,406     $1,032,220     $1,125,362
Cash and Cash Equivalents     161,452         108,828         190,657
Loans Receivable, Net         579,854         593,904         564,293
Non-covered Loans Receivable, 470,863         427,676         443,581
Net
Covered Loans Receivable, Net 108,991         166,228         120,712
Other Real Estate Owned       15,684          24,010          14,546
Non-covered Other Real Estate 1,615           2,107           1,386
Owned
Covered Other Real Estate     14,069          21,903          13,160
Owned
Securities Available for Sale 215,118         189,379         226,551
Core Deposits [(2)]           475,426         456,292         481,230
Retail Deposits [(3)]         745,900         779,397         761,602
Total Deposits                751,297         800,262         769,781
Borrowings                    60,000          81,000          70,000
Total Stockholders' Equity    273,778         142,521         279,131
                                                             
                                                             
Book Value per Share [(4)     $12.03         N/A            $12.27
(5)]
Tangible Book Value per Share $11.81         N/A            $12.04
[(4) (5)]
                                                             
                                                             
Minority Shares Outstanding   —              7,923,379       —
[(4)]
Total Shares Issued – at      22,752,214      19,974,515      22,752,214
Period End [(4)]
Weighted Average Total Shares 20,629,531      19,501,312      20,165,850
Outstanding – Basic [(4)]
Weighted Average Total Shares
Outstanding – Fully Diluted   20,792,089      19,537,348      20,296,461
[(4)]
                                                             
(1) Financial information as of September30, 2012 has been derived from
audited financial statements.
(2) Core deposits include transaction accounts, money market accounts and
savings accounts.
(3) Retail deposits include Core Deposits and certificates of deposit
excluding brokered and wholesale certificates of deposit.
(4) Share and per share amounts have been restated to reflect the completion
of the second-step conversion using a conversion ratio of 1.2471 on shares
held by the public prior to April 8, 2013.
(5) Due to the completion of the second-step conversion on April 8, 2013,
September 30, 2012 per share amounts are not comparable to other periods
presented and have not been included.
                                                             

Charter Financial Corporation
Selected Operating Data (unaudited)
in thousands except share and per share data


               Year Ended            Three Months Ended
               September 30,         September 30,        June 30,  March 31,
               2013       2012       2013      2012       2013      2013
                                                               
Total Interest  $42,636  $48,101  $9,925  $11,155  $10,654 $11,006
Income
Total Interest  7,361     10,589    1,661    2,134     1,743    1,902
Expense
Net Interest    35,275    37,512    8,264    9,021     8,911    9,104
Income
Provision for
Loan Losses on  1,400     3,300     300      1,200     500      300
Non-covered
Loans
Provision
(Credit) for    89        1,202     (5)      237       42       (42)
Loan Losses on
Covered Loans
Net Interest
Income after    33,786    33,010    7,969    7,584     8,369    8,846
Provision for
Loan Losses
Noninterest     11,653    12,912    2,802    3,618     2,662    2,977
Income
Noninterest     36,314    40,304    9,469    8,593     8,763    9,757
Expense
Income before   9,125     5,618     1,302    2,609     2,268    2,066
Income Taxes
Income Tax      2,869     639       382      858       650      682
Expense
Net Income      $6,256   $4,979   $920    $1,751   $1,618  $1,384
                                                               
Earnings per
Share – Basic   $0.30    $0.26    $0.04   $0.09    $0.07   $0.07
[(1)]
Earnings per
Share – Fully   0.30      0.26      0.04     0.09      0.07     0.07
Diluted [(1)]
Cash Dividends  0.35      0.08      0.30     —        0.05     —
per Share
                                                               
                                                               
Net Charge-offs $1,401   $4,480   $492    $1,556   $665    $136
– Legacy Loans
Deposit Fees    7,754     7,012     2,011    1,950     1,915    1,878
Gain on Sale of 1,334     962       192      353       407      385
Loans
                                                               
(1) Shares held by the public prior to April 8, 2013, have been restated to
reflect the completion of the second-step conversion using a conversion ratio
of 1.2471.
                                                               

Charter Financial Corporation
Financial Ratios (unaudited)


                           Year Ended      Three Months Ended
                           September 30,   September 30,   June 30, March 31,
                           2013    2012    2013    2012    2013     2013
                                                               
Return on Equity            2.98%   3.58%   1.32%   4.95%   2.38%    3.83%
(annualized)
Return on Assets            0.58%   0.46%   0.33%   0.68%   0.56%    0.54%
(annualized)
Net Interest Margin         3.82%   4.17%   3.44%   4.09%   3.63%    4.14%
(annualized)
Bank Core Capital Ratio     18.56%  12.16%  18.56%  12.16%  17.94%   11.33%
Bank Total Risk Based       33.83%  19.22%  33.83%  19.22%  34.62%   23.01%
Capital
Effective Tax Rate          31.44%  11.38%  29.37%  32.88%  28.64%   33.02%
                                                               
Ratios of Non-covered                                           
Assets:
Allowance for Loan Losses   1.70%   1.87%   1.70%   1.87%   1.85%    1.98%
as a % of Total Loans
Allowance for Loan Losses
as a % of Nonperforming     280.32% 237.69% 280.32% 237.69% 237.93%  276.92%
Loans
Nonperforming Assets as a % 0.94%   1.27%   0.94%   1.27%   1.08%    1.00%
of Total Loans and REO
Nonperforming Assets as a % 0.49%   0.69%   0.49%   0.69%   0.52%    0.46%
of Total Assets
Net Charge-offs as a % of   0.32%   0.86%   0.43%   1.43%   0.61%    0.13%
Average Loans (annualized)

CONTACT: Robert L. Johnson, Chairman & CEO
         Curt Kollar, CFO
         706-645-1391
         bjohnson@charterbank.net or
         ckollar@charterbank.net
        
         At Dresner Corporate Services
         Steve Carr
         312-780-7211
         scarr@dresnerco.com
 
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