Charter Financial Announces Third Quarter Fiscal 2014 Earnings of $1.8 Million

Charter Financial Announces Third Quarter Fiscal 2014 Earnings of $1.8 Million

  *Total year to date average equity to average assets of 25.2%
  *Nonperforming non-covered assets at 0.62% of total non-covered assets as
    of June 30, 2014
  *Net non-covered organic loan growth of 13.3% over prior year quarter
  *Basic and diluted EPS of $0.09 for quarter, up $0.02, respectively, on a
    year-over-year basis
  *Tangible book value per share of $11.95 at June 30, 2014

WEST POINT, Ga., July 28, 2014 (GLOBE NEWSWIRE) -- Charter Financial
Corporation (the "Company") (Nasdaq:CHFN) today reported net income of $1.8
million, or $0.09 per basic and diluted share, for the quarter ended June 30,
2014, compared with $1.6 million, or $0.07 per basic and diluted share, for
the quarter ended June 30, 2013. The increase in net income was primarily
attributable to an $834,000 negative loan loss provision on covered loans
related to improved credit quality and workout experience, along with the
absence of a non-covered loan loss provision in the 2014 third quarter versus
$500,000 in the prior year quarter and a $573,000 increase in noninterest
income. The increase was partially offset by a decline in net interest income
of $1.3 million for the quarter ended June 30, 2014. Net income for the nine
months ended June 30, 2014, was $4.9 million, or $0.23 and $0.22 per basic and
diluted share, respectively, compared with $5.3 million, or $0.26 per basic
and diluted share, for the nine months ended June 30, 2013. The decrease in
net income and earnings per share for the nine months ended June 30, 2014, was
primarily the result of lower net purchase discount accretion, partially
offset by reduced provision for loan losses due to improved credit quality and
higher noninterest income.

Quarterly Operating Results

The improvement in reported quarterly earnings for the third quarter of fiscal
2014 compared with the third quarter of fiscal 2013 resulted primarily from
the following items:

  *Recorded an $834,000 negative loan loss provision on covered loans.
  *Borrowing expense decreased $146,000, or 19.7%.
  *Deposit expense decreased by $211,000, or 21.1%.
  *The cost of deposits remained stable at 49 basis points for the quarter
    ended June 30, 2014 compared to 57 basis points for the quarter ended June
    30, 2013.
  *Net interest margin excluding accretion and amortization of loss share
    receivable was 2.90% for the quarter ended June 30, 2014 compared with
    2.75% the same quarter of 2013.
  *Noninterest income increased by $573,000, or 21.5%.
  *Deposit and bankcard fee income increased by a combined $455,000.
  *Recognized a net gain of $201,000 on the sale of securities available for
    sale.

The improvement was partially mitigated by the following items:

  *Loan interest income decreased $809,000 primarily due to a decrease in net
    accretion income.
  *The average yield on loans was 5.44% for the quarter ended June 30, 2014
    compared to 6.83% for the quarter ended June 30, 2013.
  *Salaries and employee benefits increased by $509,000, primarily related to
    stock awards made during the 2014 fiscal year.
  *Noninterest expense and income tax expense increased by a combined
    $493,000.
  *Recorded a $248,000 loss on the write down of fixed assets associated with
    a branch to be closed in the fourth quarter of fiscal 2014.
  *The net cost of operations of real estate owned increased $110,000.

Chairman and CEO Robert L. Johnson said, "While economic activity remains slow
in our markets we achieved modest loan growth. We increased net organic loans
not covered by loss sharing by $31.7 million since September 30, 2013, and by
$58.9 million from June30, 2013. With the purchase discount accretion
reductions in our covered loan portfolio and limited opportunity for loan
growth, we will continue to face significant near-term earnings challenges.
However, longer term, we remain optimistic in our ability to improve
earnings."

Financial Condition

The Company's total assets were $1.0 billion at June30, 2014, a decrease of
$49.2 million from September30, 2013. Net non-covered loans grew $40.3
million, or 8.6%, to $511.2 million at June30, 2014, from $470.9 million at
September30, 2013. Of the $40.3 million in net non-covered loan growth, $8.6
million was a transfer of non-single family loans that are no longer covered
by the FDIC due to the expiration of a non-single family loss sharing
agreement. At June30, 2014, $71.2 million of net loans receivable were
covered by FDIC loss sharing, down from $109.0 million at September30, 2013.

Total deposits were $729.6 million at June30, 2014, compared with $751.3
million at September30, 2013. Core deposits increased from $475.4 million at
September30, 2013, to $486.4 million at June30, 2014, due primarily to an
increase in transaction accounts.

Total stockholders' equity decreased to $243.4 million at June30, 2014,
compared to $273.8 million at September30, 2013, due predominantly to the
repurchase of shares during the two previous quarters.

Net Interest Income and Net Interest Margin

Net interest income decreased to $7.6 million for the quarter ended June30,
2014, from $8.9 million for the quarter ended June30, 2013. Total interest
income decreased to $9.0 million for the quarter ended June30, 2014, compared
to $10.7 million for the same quarter last year primarily as a result of a
$1.3 million decrease in net accretion income. Interest expense was lower at
$1.4 million for the quarter ended June30, 2014, compared with $1.7 million
for the same quarter of 2013, primarily as a result of lower expenses on
certificates of deposit and borrowings.

The Company's net interest margin, excluding accretion and amortization of
loss share receivable, was 2.90% for the quarter ended June30, 2014, compared
with 2.75% for the quarter ended June 30, 2013. Net interest margin, including
the impact of loss share accounting, decreased to 3.26% for the quarter ended
June30, 2014, compared with 3.63% for the same quarter of 2013. The Company
has excess cash that is invested in Fed Funds and thus provides an opportunity
for earnings improvement as these funds can be deployed into loans and the
repurchase of shares.

Provision for Loan Losses

The Company recorded no provision for loan losses on non-covered loans and a
negative provision of $834,000 on covered loans for the quarter ended June30,
2014, compared to a provision of $500,000 on non-covered loans and provision
of $42,000 on covered loans for the same quarter in 2013. In the quarter ended
June 30, 2014, the last quarter of the non-single family loss sharing
agreement related to the Company's first FDIC-assisted acquisition, the
Company successfully resolved several loss share assets resulting in the
negative provision on covered loans.

Accounting for FDIC-Assisted Acquisitions

The Company reevaluates estimated losses quarterly on covered loans and
foreclosed properties and the related FDIC indemnification asset. The Company
has three and nine quarters, respectively, of loss sharing remaining on its
second and third non-single family loss share agreements resulting from its
FDIC-assisted acquisitions. At June30, 2014, the Company had $71.2 million of
total loans, net and $8.0 million of other real estate owned covered by loss
share agreements, and is aggressively working to complete the resolution of
the problem assets during the remaining loss share periods. The discount
accretion included in interest income, net of amortization of FDIC
indemnification asset overstatement relating to these assets acquired in the
FDIC acquisitions, was $795,000 for the current quarter and $2.1 million in
the same quarter last year. There is $6.0 million of discount remaining to
accrete into interest income over the remaining life of all acquired loans
with the accretion heavily weighted towards the early quarters. Additionally,
there is an estimated $2.5 million overstatement of FDIC indemnification asset
that will be amortized over the remaining life of the acquired loan pools or
the agreement with the FDIC, whichever is shorter.

During the Company's quarterly reevaluation of cash flows on acquired loans,
the Company improved its estimate of cash flows related to covered loans
resulting in a transfer of $1.8 million from nonaccretable discount to
accretable yield related to the McIntosh Commercial Bank and First National
Bank of Florida agreements. In accordance with accounting guidance, the
transferred amount will be accreted into income prospectively over the
estimated remaining life of the loan pools. There was also a transfer of $1.2
million from Neighborhood Community Bank's allowance discount with $400,000
being transferred into the non-covered allowance and approximately $834,000
posted as a negative provision. Concurrently, an estimate of approximately
$2.5 million which previously represented cash flows receivable from the FDIC
and included in the FDIC receivable for loss sharing agreements on the balance
sheet, will be amortized into interest income over the remaining life of the
loan pools or the agreement with the FDIC, whichever is shorter.

Noninterest Income and Expense

Noninterest income increased $573,000 to $3.2 million for the quarter ended
June30, 2014, compared with $2.7 million for the same quarter in 2013, due
primarily to an increase in bankcard and deposit fees as well as gains
recognized on securities available for sale. The increase in noninterest
income was partially offset by the write down of assets related to the planned
closure of an underperforming bank branch in the fourth quarter of fiscal 2014
which will provide anticipated cost savings in future periods.

Noninterest expense increased to $9.0 million for the quarter ended June30,
2014, compared to $8.8 million for the same quarter of 2013. The increase was
primarily attributable to an increase in stock benefits due to stock awards
made in fiscal 2014.

Asset Quality

Asset quality remained strong with nonperforming assets not covered by loss
sharing agreements at 0.62% of total non-covered assets and the allowance for
loan losses at 1.65% of total non-covered loans and 192.06% of nonperforming
non-covered loans at June30, 2014. The Company's first commercial loss share
agreement expired and resulted in a transfer to the non-covered allowance for
loan losses of $400,000 and a negative provision of approximately $800,000
during the third quarter of fiscal 2014 due to improved workout experience and
credit quality. The Company had net loan charge-offs of $225,000 on
non-covered loans for the three months ended June30, 2014, compared to net
loan charge-offs of $665,000 on non-covered loans for the same period in 2013.

Capital Management

During the quarter ended June30, 2014, the Company repurchased 2.6 million
shares for approximately $29.0 million, or $10.96 per share.

Mr. Johnson said, "Since December 2013, we have completed two stock buyback
programs, whereby the company repurchased a combined 2.8 million shares, or
approximately 12% of our common stock, at a discount to tangible book value.
Meanwhile, in June we announced the approval of a new stock buyback program
for up to 2,030,000 shares, or approximately 10% of our outstanding shares,
which allows us to continue our share repurchase. The Company's solid
financial position affords us the ability to repurchase these shares which
currently trade at a discount to tangible book value per share. We believe
that this use of capital, along with our quarterly cash dividend, provides
excellent stockholder value. We will also continue to consider acquisitions
where the additional franchise value and earnings more than offset the book
value dilution."

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. 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
Condensed Consolidated Statements of Financial Condition
                                                            
                                                            
                                            (unaudited)      (audited)
                                            June 30,         September 30,
                                            2014             2013
                                                            
Assets                                                       
Cash and amounts due from depository         $6,961,232     $10,069,875
institutions
Interest-earning deposits in other financial 142,307,370      151,382,606
institutions
Cash and cash equivalents                    149,268,602      161,452,481
Loans held for sale, fair value of           2,332,156        1,857,393
$2,380,651 and $1,883,244
Securities available for sale                185,040,274      215,118,407
Federal Home Loan Bank stock                 3,442,900        3,940,300
Loans receivable:                                            
Not covered under FDIC loss sharing          521,035,113      480,152,265
agreements
Covered under FDIC loss sharing agreements   71,883,355       112,915,868
Allowance for loan losses (covered loans)    (657,133)        (3,924,278)
Unamortized loan origination fees, net       (1,252,972)      (1,100,666)
(non-covered loans)
Allowance for loan losses (non-covered       (8,605,698)      (8,188,896)
loans)
Loans receivable, net                        582,402,665      579,854,293
Other real estate owned:                                     
Not covered under FDIC loss sharing          1,331,356        1,615,036
agreements
Covered under FDIC loss sharing agreements   8,014,010        14,068,846
Accrued interest and dividends receivable    2,424,460        2,728,902
Premises and equipment, net                  20,739,910       21,750,756
Goodwill                                     4,325,282        4,325,282
Other intangible assets, net of amortization 503,372          803,886
Cash surrender value of life insurance       46,851,349       39,825,881
FDIC receivable for loss sharing agreements  14,921,803       29,941,862
Deferred income taxes                        10,750,880       11,350,745
Other assets                                 7,888,340        771,779
Total assets                                 $1,040,237,359 $1,089,405,849
                                                            
Liabilities and Stockholders' Equity                         
Liabilities:                                                 
Deposits                                     $729,608,889   $751,296,668
FHLB advances                                55,000,000       60,000,000
Advance payments by borrowers for taxes and  931,770          1,054,251
insurance
Other liabilities                            11,282,376       3,277,094
Total liabilities                            796,823,035      815,628,013
Stockholders' equity:                                        
Common stock, $0.01 par value; 19,959,971
shares issued and outstanding at June 30,    199,600          227,522
2014 and 22,752,214 shares issued and
outstanding at September 30, 2013
Preferred stock, $0.01 par value; 50,000,000
shares authorized at June 30, 2014 and       —                —
September 30, 2013
Additional paid-in capital                   138,090,060      171,729,570
Unearned compensation – ESOP                 (5,984,317)      (6,480,949)
Retained earnings                            111,784,129      110,141,286
Accumulated other comprehensive loss         (675,148)        (1,839,593)
Total stockholders' equity                   243,414,324      273,777,836
                                                            
Total liabilities and stockholders' equity   $1,040,237,359 $1,089,405,849


Charter Financial Corporation
Condensed Consolidated Statements of Income (unaudited)
                                                             
                                                             
                      Three Months Ended June 30, Nine Months Ended June 30,
                      2014          2013          2014          2013
Interest income:                                              
Loans receivable       $8,833,596  $9,642,115  $25,564,268 $29,969,312
Mortgage-backed
securities and         871,899       816,602       2,794,019     2,285,175
collateralized
mortgage obligations
Federal Home Loan Bank 35,601        29,307        102,778       95,097
stock
Other investment
securities available   18,286        41,817        56,314        136,289
for sale
Interest-earning
deposits in other      97,321        123,869       266,816       225,263
financial institutions
Amortization of FDIC   (849,919)     —             (1,596,310)   —
loss share receivable
Total interest income  9,006,784     10,653,710    27,187,885    32,711,136
Interest expense:                                             
Deposits               790,011       1,001,276     2,479,856     3,307,644
Borrowings             595,829       741,881       1,872,357     2,391,919
Total interest expense 1,385,840     1,743,157     4,352,213     5,699,563
Net interest income    7,620,944     8,910,553     22,835,672    27,011,573
Provision for loan
losses, not covered    —             500,000       300,000       1,100,000
under FDIC loss
sharing agreements
Provision for covered  (834,086)     41,838        (885,664)     94,321
loan losses
Net interest income
after provision for    8,455,030     8,368,715     23,421,336    25,817,252
loan losses
Noninterest income:                                           
Service charges on     1,463,698     1,277,072     4,263,639     3,952,695
deposit accounts
Bankcard fees          906,013       637,943       2,596,743     1,790,922
Gain on securities     200,704       —             200,704       219,913
available for sale
Bank owned life        278,487       211,491       925,467       694,431
insurance
Gain on sale of loans
and loan servicing     298,405       407,176       737,236       1,142,387
release fees
Brokerage commissions  124,128       153,205       452,479       468,543
FDIC receivable for
loss sharing           68,400        (114,993)     61,533        218,918
agreements accretion
(impairment)
Other                  (104,205)     90,602        1,330,929     362,959
Total noninterest      3,235,630     2,662,496     10,568,730    8,850,768
income
Noninterest expenses:                                         
Salaries and employee  4,969,325     4,460,128     14,522,114    13,502,879
benefits
Occupancy              1,863,131     1,845,412     5,629,280     5,324,176
Legal and professional 369,360       458,735       1,309,946     1,275,322
Marketing              339,774       335,708       976,048       927,110
Federal insurance
premiums and other     199,167       254,002       701,428       356,718
regulatory fees
Net cost (benefit) of
operations of real     87,846        (22,205)      374,538       977,302
estate owned
Furniture and          225,753       203,276       550,200       615,235
equipment
Postage, office        239,874       282,903       646,500       807,034
supplies and printing
Core deposit
intangible             94,454        116,317       300,514       364,716
amortization expense
Other                  646,682       829,473       1,805,148     2,694,791
Total noninterest      9,035,366     8,763,749     26,815,716    26,845,283
expenses
Income before income   2,655,294     2,267,462     7,174,350     7,822,737
taxes
Income tax expense     870,116       649,513       2,261,294     2,486,092
Net income             $1,785,178  $1,617,949  $4,913,056  $5,336,645
Basic net income per   $0.09       $0.07       $0.23       $0.26
share
Diluted net income per $0.09       $0.07       $0.22       $0.26
share
Weighted average
number of common       20,746,759    21,747,891    21,486,082    20,165,850
shares outstanding
Weighted average
number of common and   21,300,951    21,878,502    22,040,274    20,296,461
potential common
shares outstanding


Charter Financial Corporation
Supplemental Financial Data (unaudited)
in thousands except per share data
                                                                                             
                                                                                             
                    Quarter to Date                                                   Year to Date
                    6/30/2014     3/31/2014    12/31/2013   9/30/2013    6/30/2013    6/30/2014    6/30/2013
                                                                                             
Consolidated balance                                                                          
sheet data:
Total assets         $1,040,237  $1,077,870 $1,079,911 $1,089,406 $1,125,362 $1,040,237 $1,125,362
Cash and cash        149,269       175,114      157,268      161,452      190,657      149,269      190,657
equivalents
Loans receivable,    582,403       572,040      576,567      579,854      564,293      582,403      564,293
net
Non-covered loans    511,176       481,907      476,467      470,863      443,581      511,176      443,581
receivable, net
Covered loans        71,227        90,133       100,100      108,991      120,712      71,227       120,712
receivable, net
Other real estate    9,345         10,744       11,996       15,684       14,546       9,345        14,546
owned
Non-covered other    1,331         849          1,054        1,615        1,386        1,331        1,386
real estate owned
Covered other real   8,014         9,895        10,942       14,069       13,160       8,014        13,160
estate owned
Securities available 185,040       201,578      208,064      215,118      226,551      185,040      226,551
for sale
Core deposits [(2)]  486,392       491,585      474,389      475,426      481,230      486,392      481,230
Total deposits       729,609       742,064      737,654      751,297      769,781      729,609      769,781
Borrowings           55,000        55,000       60,000       60,000       70,000       55,000       70,000
Total stockholders'  243,414       270,265      273,164      273,778      279,131      243,414      279,131
equity
                                                                                             
Consolidated                                                                                  
earnings summary:
Interest income      $9,007      $8,923     $9,257     $9,925     $10,654    $27,188    $32,711
Interest expense     1,386         1,430        1,536        1,661        1,743        4,352        5,700
Net interest income  7,621         7,493        7,721        8,264        8,911        22,836       27,011
Provision for loan
losses on            —             —            300          300          500          300          1,100
non-covered loans
Provision for loan
losses on covered    (834)         (54)         2            (5)          42           (885)        94
loans
Net interest income
after provision for  8,455         7,547        7,419        7,969        8,369        23,421       25,817
loan losses
Noninterest income   3,236         3,217        4,116        2,802        2,662        10,569       8,852
Noninterest expense  9,036         8,580        9,200        9,469        8,763        26,816       26,846
Income tax expense   870           693          698          382          650          2,261        2,486
Net income           $1,785      $1,491     $1,637     $920       $1,618     $4,913     $5,337
                                                                                             
Per share data:                                                                               
Earnings per share – $0.09       $0.07      $0.07      $0.04      $0.07      $0.23      $0.26
basic
Earnings per share – $0.09       $0.07      $0.07      $0.04      $0.07      $0.22      $0.26
fully diluted
Cash dividends per   $0.05       $0.05      $0.05      $0.30      $0.05      $0.15      $0.05
share
                                                                                             
Weighted average     20,747        21,701       22,007       22,005       21,748       21,486       20,166
basic shares
Weighted average     21,301        22,224       22,528       22,167       21,879       22,040       20,296
diluted shares
Total shares         19,960        22,603       22,998       22,752       22,752       19,960       22,752
outstanding
                                                                                             
Book value per share $12.20      $11.96     $11.88     $12.03     $12.27     $12.20     $12.27
Tangible book value  $11.95      $11.74     $11.66     $11.81     $12.04     $11.95     $12.04
per share
__________________________________                                                             
(1) Financial information as of September30, 2013 has been derived from audited financial statements.
(2) Core deposits include transaction accounts, money market accounts and savings accounts.


Charter Financial Corporation
Supplemental Information (unaudited)
dollars in thousands
                                                                                   
                                                                                   
                      Quarter to Date                                         Year to Date
                      6/30/2014   3/31/2014  12/31/2013 9/30/2013  6/30/2013  6/30/2014  6/30/2013
                                                                                   
Not covered by loss                                                                 
share agreements
Loans receivable:                                                                   
[(1)]
1-4 family residential $139,803  $135,181 $133,331 $124,571 $113,255 $139,803 $113,255
real estate
Commercial real estate 284,591     271,156    267,818    269,609    254,743    284,591    254,743
Commercial             21,172      21,501     22,793     23,774     19,215     21,172     19,215
Real estate            58,459      47,112     45,200     44,653     47,904     58,459     47,904
construction
Consumer and other     17,010      16,531     16,908     17,545     17,876     17,010     17,876
Total non-covered      $521,035  $491,481 $486,050 $480,152 $452,993 $521,035 $452,993
loans receivable
                                                                                   
Allowance for loan                                                                  
losses:
Balance at beginning   $8,431    $8,494   $8,189   $8,380   $8,546   $8,189   $8,190
of period
Charge-offs            (238)       (93)       (68)       (501)      (705)      (399)      (1,100)
Recoveries             13          30         73         10         39         116        190
Provision              —           —          300        300        500        300        1,100
Transfer [(2)]         400         —          —          —          —          400        —
Balance at end of      $8,606    $8,431   $8,494   $8,189   $8,380   $8,606   $8,380
period
                                                                                   
Nonperforming assets:                                                               
[(3)]
Nonaccrual loans       $4,243    $4,743   $4,975   $2,874   $3,480   $4,243   $3,480
Loans delinquent 90
days or greater and    238         —          —          47         42         238        42
still accruing
Total nonperforming    4,481       4,743      4,975      2,921      3,522      4,481      3,522
non-covered loans
Other real estate      1,331       849        1,053      1,615      1,386      1,331      1,386
owned
Total nonperforming    $5,812    $5,592   $6,028   $4,536   $4,908   $5,812   $4,908
non-covered assets
                                                                                   
Trouble debt                                                                        
restructuring:
Trouble debt
restructurings -       $7,352    $7,603   $8,589   $12,302  $12,129  $7,352   $12,129
accruing
Trouble debt
restructurings -       2,094       2,094      2,261      439        500        2,094      500
nonaccrual
Total trouble debt     $9,446    $9,697   $10,850  $12,741  $12,629  $9,446   $12,629
restructurings
                                                                                   
Covered by loss                                                                     
sharing agreements
Nonperforming assets:                                                               
Other real estate      $8,014    $9,895   $10,942  $14,069  $13,160  $8,014   $13,160
owned
Covered loans 90+ days 3,156       8,825      8,661      8,574      13,223     3,156      13,223
delinquent [ (4)]
Total nonperforming    $11,170   $18,720  $19,603  $22,643  $26,383  $11,170  $26,383
covered assets
__________________________________                                                   
(1) Includes previously acquired loans in the amount of $9.1 million related to the Neighborhood
Community Bank non single-family loss sharing agreement with the FDIC that expired in June 2014.
(2) Transfer of allowance related to acquired Neighborhood Community Bank non-single family loans
upon expiration of the non-single family loss sharing agreement with the FDIC in June 2014.
(3) Previously acquired loans that are no longer covered under the commercial loss sharing
agreement with the FDIC are excluded from this table. Due to the recognition of accretion income
established at the time of acquisition, acquired loans that are greater than 90 days delinquent are
regarded as accruing loans.
(4) Covered loans contractually past due greater than ninety days are reported as accruing loans
because of accretable discounts established at the time of acquisition.


Charter Financial Corporation
Supplemental Information (unaudited)
                                                                    
                                                                    
             Quarter to Date                                    Year to Date
             6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 6/30/2014 6/30/2013
                                                                    
Return on
equity        2.71%     2.19%     2.39%      1.32%     2.38%     2.42%     3.81%
(annualized)
Return on
assets        0.67%     0.55%     0.60%      0.33%     0.56%     0.61%     0.67%
(annualized)
Net interest
margin        3.26%     3.18%     3.29%      3.44%     3.63%     3.24%     3.95%
(annualized)
Bank core     19.51%    19.25%    19.05%     18.56%    17.94%    19.51%    17.94%
capital ratio
Bank total
risk based    32.69%    34.18%    33.83%     33.83%    34.62%    32.69%    34.62%
capital
Effective tax 32.77%    31.73%    29.90%     29.37%    28.64%    31.52%    31.78%
rate
Yield on      5.44%     5.41%     5.55%      6.14%     6.83%     5.47%     6.92%
loans
Cost of       0.49%     0.49%     0.53%      0.55%     0.57%     0.50%     0.62%
deposits
                                                                    
Ratios of
non-covered                                                          
assets:
Allowance for
loan losses   1.65%     1.71%     1.74%      1.70%     1.85%     1.65%     1.85%
as a % of
total loans
Allowance for
loan losses
as a % of     192.06%   177.76%   170.74%    280.32%   237.93%   192.06%   237.93%
nonperforming
loans
Nonperforming
assets as a % 1.11%     1.14%     1.24%      0.94%     1.08%     1.11%     1.08%
of total
loans and REO
Nonperforming
assets as a % 0.62%     0.59%     0.64%      0.49%     0.52%     0.62%     0.52%
of total
assets
Net
charge-offs
as a % of     0.18%     0.05%     —%         0.43%     0.61%     0.08%     0.28%
average loans
(annualized)


Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
                                                                        
                                                                        
                     Quarter to Date
                     6/30/2014                       6/30/2013
                                           Average                       Average
                     Average                Yield/  Average                Yield/
                     Balance      Interest   Cost    Balance      Interest   Cost
                                              [(3)]                           [(3)]
Assets:                                                                  
Interest-earning                                                         
assets:
Interest-earning
deposits in other     $151,348   $97      0.26%   $203,091   $124     0.24%
financial
institutions
FHLB common stock and
other equity          3,443        36         4.14    4,407        29         2.66
securities
Mortgage-backed
securities and
collateralized        176,194      872        1.98    184,833      817        1.77
mortgage obligations
available for sale
Other investment
securities available  18,290       18         0.40    25,986       42         0.64
for sale
Loans receivable      586,797      7,189      4.90    564,863      7,543      5.34
Accretion and
amortization of loss  —            795        0.54    —            2,099      1.49
share loans
receivable [(1)]
Total
interest-earning      936,072      9,007      3.85    983,180      10,654     4.33
assets
Total
noninterest-earning   123,453                       170,008                
assets
Total assets          $1,059,525                  $1,153,188           
Liabilities and                                                          
Equity:
Interest-bearing                                                         
liabilities:
NOW accounts          $178,771   $51      0.11%   $162,665   $54      0.13%
Reward accounts       48,429       29         0.24    51,863       44         0.34
Savings accounts      48,482       2          0.02    49,702       6          0.05
Money market deposit  120,903      65         0.21    141,723      68         0.19
accounts
Certificate of        247,197      643        1.04    296,014      829        1.12
deposit accounts
Total
interest-bearing      643,782      790        0.49    701,967      1,001      0.57
deposits
Borrowed funds        55,000       596        4.33    69,978       742        4.24
Total
interest-bearing      698,782      1,386      0.79    771,945      1,743      0.90
liabilities
Noninterest-bearing   85,061                        101,677                
deposits
Other
noninterest-bearing   11,979                        7,498                  
liabilities
Total
noninterest-bearing   97,040                        109,175                
liabilities
Total liabilities     795,822                       881,120                
Total stockholders'   263,703                       272,068                
equity
Total liabilities and $1,059,525                  $1,153,188           
stockholders' equity
Net interest income               $7,621                      $8,911   
                                                                        
Net interest-earning              $237,290                    $211,235 
assets
Net interest rate                           3.06%                         3.43%
spread
Net interest margin                         3.26%                         3.63%
Net interest margin,
excluding the effects                       2.90%                         2.75%
of purchase
accounting [(2)]
Ratio of average
interest-earning
assets to average                           133.96%                       127.36%
interest-bearing
liabilities
__________________________________                                        
(1) Accretion of accretable purchase discount on loans acquired in FDIC-assisted
acquisitions and amortization of impairment of FDIC indemnification asset.
(2) Net interest income excluding accretion and amortization of loss share loans
receivable divided by net interest earning assets excluding loan accretable discounts
in the amount of $5.5 million and $7.9 million for the quarter ended June 30, 2014
and June 30, 2013, respectively.
(3) Annualized.


Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
                                                                        
                                                                        
                     Year to Date
                     6/30/2014                       6/30/2013                       
                                           Average                       Average
                     Average                Yield/  Average                Yield/
                     Balance      Interest   Cost    Balance      Interest   Cost
                                              [(3)]                           [(3)]
Assets:                                                                  
Interest-earning                                                         
assets:
Interest-earning
deposits in other     $146,869   $267     0.24%   $134,628   $225     0.22%
financial
institutions
FHLB common stock and
other equity          3,748        103        3.66    4,965        95         2.55
securities
Mortgage-backed
securities and
collateralized        184,775      2,794      2.02    169,320      2,285      1.80
mortgage obligations
available for sale
Other investment
securities available  19,126       56         0.39    25,141       137        0.73
for sale
Loans receivable      584,630      21,249     4.85    577,277      22,840     5.28
Accretion and
amortization of loss              2,719      0.62                7,129      1.64
share loans
receivable [(1)]
Total
interest-earning      939,148      27,188     3.86    911,331      32,711     4.79
assets
Total
noninterest-earning   134,998                       153,793                
assets
Total assets          $1,074,146                  $1,065,124           
Liabilities and                                                          
Equity:
Interest-bearing                                                         
liabilities:
NOW accounts          $175,754   $149     0.11%   $154,547   $155     0.13%
Rewards checking      48,342       87         0.24    52,035       146        0.37
Savings accounts      48,243       8          0.02    49,596       18         0.05
Money market deposit  127,567      211        0.22    133,077      245        0.25
accounts
Certificate of        256,980      2,025      1.05    317,961      2,743      1.15
deposit accounts
Total
interest-bearing      656,886      2,480      0.50    707,216      3,307      0.62
deposits
Borrowed funds        57,956       1,872      4.31    76,418       2,392      4.17
Total
interest-bearing      714,842      4,352      0.81    783,634      5,699      0.97
liabilities
Noninterest-bearing   77,572                        88,018                 
deposits
Other
noninterest-bearing   11,459                        6,781                  
liabilities
Total
noninterest-bearing   89,031                        94,799                 
liabilities
Total liabilities     803,873                       878,433                
Total stockholders'   270,273                       186,691                
equity
Total liabilities and $1,074,146                  $1,065,124           
stockholders' equity
Net interest income               $22,836                     $27,012  
                                                                        
Net interest earning              $224,306                    $127,697 
assets
Net interest rate                           3.05%                         3.82%
spread
Net interest margin                         3.24%                         3.95%
Net interest margin,
excluding the effects                       2.84%                         2.88%
of purchase
accounting [(2)]
Ratio of average
interest-earning
assets to average                           131.38%                       116.3%
interest-bearing
liabilities
__________________________________                                        
(1) Accretion of accretable purchase discount on loans acquired in FDIC-assisted
acquisitions and amortization of impairment of FDIC indemnification asset.
(2) Net interest income excluding accretion and amortization of loss share loans
receivable divided by net interest earning assets excluding loan accretable discounts
in the amount of $4.5 million and $10.3 million for the nine months ended June 30,
2014 and 2013, respectively.
(3) 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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