-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jb/qtIoMjfgOzDHdyCGgrrlQTuN/0pw+uQZmVXIkJPOZ24T5JcNgxrZV0cY64W2X ez2I+FMFYv6FMvMkElMvDQ== 0001275287-05-002766.txt : 20050727 0001275287-05-002766.hdr.sgml : 20050727 20050727104109 ACCESSION NUMBER: 0001275287-05-002766 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050727 DATE AS OF CHANGE: 20050727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHARTER FINANCIAL CORP/GA CENTRAL INDEX KEY: 0001136796 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 000000000 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-33071 FILM NUMBER: 05975922 BUSINESS ADDRESS: STREET 1: 600 THIRD AVENUE CITY: WEST POINT STATE: GA ZIP: 31833 BUSINESS PHONE: 7066451391 MAIL ADDRESS: STREET 1: 600 THIRD AVENUE CITY: WEST POINT STATE: GA ZIP: 31833 8-K 1 cf3136.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 27, 2005 CHARTER FINANCIAL CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) United States 000-33071 58-2659667 - ---------------------------- ------------ ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 600 Third Avenue, West Point, Georgia 31833 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (706) 645-1391 Not Applicable -------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 27, 2005, Charter Financial Corporation (the "Company") announced its third quarter earnings for the 2005 fiscal year. A copy of the press release dated July 27, 2005, describing third quarter earnings is attached as Exhibit 99.1. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) The following exhibit is furnished with this Report: Exhibit No. Description ----------- ---------------------------------------------------------- 99.1 Press release issued by Charter Financial Corporation (the "Company") on July 27, 2005 furnished in accordance with Item 12 of this Current Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 27, 2005 CHARTER FINANCIAL CORPORATION By: \s\Robert L. Johnson ------------------------------------- Name: Robert L. Johnson Title: President and Chief Executive Officer EXHIBIT INDEX Exhibit No. Description - ----------- ----------------------------------------------------- 99.1 Press release issued by the Company on July 27, 2005. EX-99.1 2 cf3136ex991.txt Exhibit 99.1 CHARTER FINANCIAL REPORTS Q3 EARNINGS -- EPS of 16 Cents -- Loans Up $11 million -- Move to Charter Corporate Center Complete -- Book Value Per Share up 3.9 Percent WEST POINT, Ga., July 27 /PRNewswire-FirstCall/ -- Charter Financial Corporation (Nasdaq: CHFN) today reported net income for the third quarter ended June 30, 2005 of $3.2 million, or $0.16 per share, compared with $1.9 million, or $0.10 per share, a year earlier and $2.5 million, or $0.13 per share, for the quarter ended March 31, 2005. Results for the current quarter include a pre-tax gain on the sale of Freddie Mac stock of $1.9 million. There were no sales of Freddie Mac stock in the prior quarter or the prior year quarter. Net income for the nine months ended June 30, 2005 was $8.6 million, or $0.44 per share, compared with $5.8 million, or $0.30 per share in the comparable period a year earlier. Results for the nine months ended June 30, 2005 included $4.5 million in pre-tax gains on the sale of Freddie Mac stock. The comparable period the prior year included a pre-tax gain of $1.1 million from the sale of Freddie Mac stock. "Our loan growth approximated $10 million for each of the last two quarters," said Robert L. Johnson, President and CEO. "The continuing loan growth is the result of our focus on our customers' needs and the high level of personal service they have experienced when dealing with our staff." On June 30, 2005, Charter Financial had assets of $1.1 billion, up $13.3 million from September 30, 2004. Net loans outstanding rose to $338.2 million, up $22.1 million from September 30, 2004. Credit quality remained strong which enabled Charter Financial to maintain its allowance for loan losses at 1.84 percent of loans with no additional provision. Retail deposits were $237.8 million compared with $245.5 million at September 30, 2004. "Customer service levels are being further enhanced by consolidation of our support and management staff in the Charter Corporate Center. That move is also improving the efficiency of our operations and should also be reflected in an improving cost structure," Johnson added. The third quarter was the first period during which the company's new LaGrange location was open for the entire period. "The new facility adds to convenience for our customers. It makes Charter Financial more competitive and will help attract new customers from the surrounding area," Johnson said. "Our continued strong financial performance allowed us to increase the quarterly dividend by 40 percent to $0.35 per share beginning with the dividend we paid in June. This equates to an annualized dividend rate of $1.40 per share. Based on the current price of our shares, the dividend yield is approximately four percent," said Johnson. On a consolidated basis, Charter Financial owns 4.5 million shares of Freddie Mac common stock with a pre-tax unrealized gain of approximately $289.9 million at June 30, 2005. Total equity was $268.8 million at June 30, 2005 compared with $258.5 million at March 31, 2005 and $272.5 million at September 30, 2004. Book value per share at June 30, 2005 increased to $13.60 from $13.09 at March 31, 2005 due to the increase in accumulated other comprehensive income. This resulted from the increase in the market value of Freddie Mac common stock from $63.20 per share at March 31, 2005 to $65.23 at June 30, 2005. CharterBank's core capital was 9.86 percent of assets at June 30, 2005 and total capital as a percent of assets was 24.85. 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. Charter Financial is in the mutual holding company structure with First Charter, MHC owning approximately 80% of Charter Financial. CharterBank is headquartered in West Point, Georgia, and operates nine full-service branches on the I-85 corridor from LaGrange, Georgia to Auburn, Alabama. CharterBank's deposits are insured by the Federal Deposit Insurance Corporation. Forward-Looking Statements This release may contain "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. 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. Selected Financial Data (in thousands except share data):
At June 30, At March 31, At September 30, At June 30, 2005 2005 2004 2004 ------------- ------------- ----------------- ------------- Unaudited Total Assets $ 1,081,518 $ 1,070,653 $ 1,068,201 $ 1,067,732 Loans Receivable, Net 338,201 327,184 316,151 311,590 Mortgage Securities Available for Sale 379,886 385,406 378,357 383,636 Freddie Mac Common Stock 295,981 288,666 300,430 292,478 Other Investment Securities 9,951 13,823 22,157 21,877 Retail Deposits 237,799 238,275 245,463 243,068 Core Deposits 126,647 126,566 129,349 130,250 Total Deposits 291,773 287,232 279,575 293,003 Deferred Income Taxes 109,641 104,458 111,603 105,290 Borrowings 395,817 407,714 392,789 392,969 Realized Stockholders' Equity* 91,530 89,552 92,141 89,881 Accumulated Other Comprehensive Income** 177,238 168,994 180,359 171,131 Total Equity 268,768 258,546 272,500 261,012 Book Value per Share $ 13.60 $ 13.09 $ 13.80 $ 13.27 Tangible Book Value per Share 13.31 12.79 13.49 12.96 Minority Shares Outstanding 3,900,442 3,900,442 3,893,642 3,570,550 Total Shares Outstanding - at Quarter End 19,758,366 19,758,366 19,751,566 19,673,968 Weighted Average Total Shares Outstanding - Basic 19,521,791 19,517,703 19,437,613 19,421,990 Weighted Average Total Shares Outstanding - Fully Diluted 19,570,263 19,581,137 19,478,037 19,456,345
* Includes Total Stockholders Equity less Accumulated Other Comprehensive Income. ** Includes unrealized gains and losses on Freddie Mac common stock and other investment securities adjusted for income taxes at a tax rate of 38.6% Selected Operating Data (in thousands except share data):
Three Months Ended ------------------------------------------ Nine Months Ended June 30, March 31, June 30, --------------------------- ------------ --------------------------- 2005 2004 2005 2005 2004 ------------ ------------ ------------ ------------ ------------ Unaudited Total Interest Income $ 11,422 $ 9,662 $ 11,059 $ 33,159 $ 28,574 Total Interest Expense 5,610 4,202 5,302 15,950 12,518 Net Interest Income 5,812 5,460 5,757 17,209 16,056 Provision for Loan Losses - - - - 30 Net Interest Income after Provision for Loan Losses 5,812 5,460 5,757 17,209 16,026 Noninterest Income 3,108 1,129 1,695 8,095 4,520 Noninterest Expense 4,535 4,112 4,530 13,666 12,795 Income before Income Taxes 4,385 2,477 2,922 11,638 7,751 Income Tax Expense 1,176 605 459 3,042 1,958 Net Income $ 3,209 $ 1,872 $ 2,463 $ 8,596 $ 5,793 Earnings per Share $ 0.16 $ 0.10 $ 0.13 $ 0.44 $ 0.30 Earnings per Share - Fully Diluted 0.16 0.10 0.13 0.44 0.30 Cash Dividends per Share*** 0.35 0.25 0.25 2.85 0.85 Net Charge-offs (Recoveries) 28 (118) 27 269 172 Deposit Fees 679 625 632 1,981 1,860 Gain on Sale of Loans 196 345 201 630 897 Gain on Sale of Freddie Mac Common Stock 1,906 - - 4,483 1,125 Gain (loss) on Covered Calls Related to Freddie Mac Common Stock 141 (2) 674 449 138
*** First Charter, MHC has waived its portion of these dividends, resulting in payment only to the minority stockholders.
Three Months Ended ------------------------------------------ Nine Months Ended June 30, March 31, June 30, --------------------------- ------------ --------------------------- 2005 2004 2005 2005 2004 ------------ ------------ ------------ ------------ ------------ Unaudited Performance Ratios: Return on Equity 4.89% 2.98% 3.60% 4.21% 3.10% Return on Assets 1.19 0.72 0.90 1.06 0.75 Net Interest Margin 2.22 2.16 2.16 2.17 2.12 Loan Loss Reserve as a % of Total Loans 1.84 2.08 1.91 1.84 2.08 Loan Loss Reserve as a % of Nonperforming Assets 104.50 114.29 101.37 104.50 114.29 Nonperforming Assets as a % of Total Loans and REO 1.75 1.82 1.88 1.75 1.82 Net Chargeoffs (Recoveries) as a % of Average Loans 0.01 (0.04) 0.01 0.08 0.06 Nonperforming Assets to Total Assets 0.56 0.54 0.59 0.56 0.54 Bank Core Capital Ratio 9.86 9.08 9.64 9.86 9.08 Dividend Payout Ratio 38.36 46.31 35.70 116.54 50.20 Effective Tax Rate 26.81 24.41 15.72 26.14 25.26
/CONTACT: Robert L. Johnson, President & CEO of Charter Financial Corporation, +1-706-645-1391, bjohnson@charterbank.net , or Michael Arneth, marneth@tirc.com , or Woody Wallace, wwallace@tirc.com , both of The Investor Relations Company, +1-847-296-4200/ -----END PRIVACY-ENHANCED MESSAGE-----