Attached files
| file | filename |
|---|---|
| EX-10.1 - EXHIBIT 10.1 - CHARTER FINANCIAL CORP | ex10-1.htm |
| 8-K - FORM 8-K - CHARTER FINANCIAL CORP | chfn-8k11042016.htm |
Exhibit 99.1
 | ||
NEWS RELEASE
Contact: | ||
Robert L. Johnson, Chairman & CEO | Dresner Corporate Services | |
Curt Kollar, CFO | Steve Carr | |
706-645-1391 | 312-780-7211 | |
bjohnson@charterbank.net or | scarr@dresnerco.com | |
ckollar@charterbank.net | ||
CHARTER FINANCIAL ANNOUNCES FISCAL 2016
EARNINGS OF $11.9 MILLION
• | Basic and diluted EPS of $0.27 and $0.26 for the quarter and $0.83 and $0.79 for the year |
• | Year over year increases of $2.9 million and $9.3 million in quarterly and yearly net interest income |
• | Bankcard and deposit fee quarterly income grew year over year by $413,000, or 14.9% |
• | Nonperforming assets at 0.45% of total assets at September 30, 2016 |
• | Growth in legacy loans of $6.4 million for the quarter |
• | Quarterly growth in tangible book value per share of $0.25 to $11.36 at September 30, 2016 |
West Point, Georgia, November 4, 2016 — Charter Financial Corporation (the “Company”) (NASDAQ: CHFN) today reported net income of $3.8 million for the quarter ended September 30, 2016, or $0.27 and $0.26 per basic and diluted share, respectively, compared with net income of $553,000, or $0.04 per basic and diluted share, for the quarter ended September 30, 2015. Net income for the year ended September 30, 2016, was $11.9 million, or $0.83 and $0.79 per basic and diluted share, respectively, compared with net income of $5.6 million, or $0.35 and $0.34 per basic and diluted share, respectively, for the year ended September 30, 2015.
Net income for the current year quarter increased $3.3 million over the prior-year quarter due in part to a $2.5 million impairment charge to the FDIC receivable in the prior-year quarter, as well as increased loan interest income and deposit fee income generated by the acquisition of CBS Financial Corporation ("CBS") in the third quarter of fiscal 2016.
The year over year increase in net income of $6.3 million was partially attributable to $3.6 million of nonrecurring recoveries on loans that were previously covered by loss share agreements with the FDIC, as well as the prior-year FDIC impairment charge, partially offset by $4.2 million of acquisition expenses from the purchase of CBS. Core system conversion was completed in July and integration expenses are substantially completed.
Quarterly Operating Results
Quarterly earnings for the fourth quarter of fiscal 2016 compared with the fourth quarter of fiscal 2015 were positively impacted by the following items:
• | Loan interest income increased $3.1 million, or 32.9%, while loan interest income excluding accretion and amortization of loss share receivable increased $3.6 million, or 44.7%. |
• | Deposit and bankcard fee income increased by a combined $413,000, or 14.9%. |
1
Exhibit 99.1
• | Gain on sale of loans and servicing released loan fees increased $350,000, or 76.2%, due to increased activity in both legacy markets and the newly acquired market. |
• | Interest expense on FHLB borrowings decreased $173,000, or 30.9%, due to a maturing advance being extended at a substantially lower rate during the third quarter of fiscal 2016. |
• | As a result of the early termination of the Company's loss-sharing agreements with the FDIC in the fourth quarter of fiscal 2015, a $2.5 million impairment charge to earnings was recorded. No such charge was recorded in the fourth quarter of fiscal 2016. |
The above increases to net income were partially offset by the following items:
• | Interest expense on deposits increased $454,000, or 68.4%, due to higher balances from both the CBS acquisition and legacy markets. |
• | Salaries and employee benefits increased $1.0 million, or 18.8%, due to increased payroll as well as final severance costs related to the CBS acquisition. |
• | Income tax expense increased $1.8 million due to an increase of $5.1 million in income before income taxes. |
Chairman and CEO Robert L. Johnson said, “Our fourth quarter results clearly show the transformative impact of the acquisition of CBS Financial Corporation on our earnings. With the acquisition now behind us, the Company can focus on its expanded market presence in Atlanta.
"We have taken a major step toward our goal of increasing our earnings to the level that supports our stock price," Mr. Johnson continued. "Looking ahead to 2017, we believe our strategy of building bankcard and deposit fee income, in addition to net interest income, provides revenue diversification, which lowers risk to our earnings."
Financial Condition
The Company's total assets increased $415.9 million to $1.4 billion at September 30, 2016, from $1.0 billion at September 30, 2015. Net loans increased $279.3 million, or 39.1%, to $994.1 million at September 30, 2016, from $714.8 million at September 30, 2015. These increases were largely attributable to the completion of the acquisition of CBS, which brought in $376.4 million of total assets and $300.8 million of loans, respectively. Legacy loans increased $6.4 million and $3.8 million during the quarter and year ended September 30, 2016, to $729.5 million, while new originations from former CBS branches totaled $22.8 million since the acquisition date of April 15, 2016.
Total deposits were $1.2 billion at September 30, 2016, compared with $738.9 million at September 30, 2015. The increase was due in part to the acquisition of CBS, which added $333.7 million of deposits to the Company's portfolio, as well as a continued increase in the Company's legacy deposits, which grew $75.2 million during the year ended September 30, 2016. Overall, transaction and money market accounts increased $150.7 million and $115.6 million, respectively, at September 30, 2016.
Total stockholders' equity decreased to $203.1 million at September 30, 2016, compared to $204.9 million at September 30, 2015, due primarily to $13.2 million of share repurchases during fiscal 2016, offset by $11.9 million of net income during the same period. Book value per share increased to $13.52 at September 30, 2016, from $12.79 per share at September 30, 2015, due to the effects of the company's stock repurchases, offset by our retention of earnings. Tangible book value per share decreased to $11.36 at September 30, 2016, compared to $12.48 at September 30, 2015, due to $25.5 million of goodwill generated by the purchase of CBS, partially offset by stock repurchases during fiscal 2016 and the associated reduced share count at September 30, 2016. However, tangible book value per share increased $0.25 from $11.11 at June 30, 2016, as a result of our earnings in the current quarter.
Net Interest Income and Net Interest Margin
Net interest income increased to $12.2 million for the quarter ended September 30, 2016, compared with $9.3 million for the quarter ended September 30, 2015. Interest income increased $3.3 million due to a $3.6 million increase in loan interest income, excluding accretion and amortization of loss share receivable, offset by a $444,000 decrease in net purchase discount accretion and amortization of loss share receivable. Quarter over quarter, total interest expense increased $399,000 to $1.6 million for the quarter ended September 30, 2016, largely due to increased balances of higher-costing deposits from CBS. Net interest margin was 3.82% for the three months ended September 30, 2016, compared to 4.05% for the same period in 2015. The decrease was largely due to increased deposit balances, both from legacy growth and the acquisition of CBS, as well as a continued drop in accretion income. The Company's net interest margin, excluding the effects of purchase accounting, increased to 3.47% for the quarter ended September 30, 2016, compared with 3.37% for the quarter ended September 30, 2015.
Net interest income for the year ended September 30, 2016 increased $9.3 million, or 28.2%, to $42.2 million, compared to $32.9 million for the prior-year period. Interest income increased $9.9 million primarily due to an increase of $7.2 million, or 19.7%, in loan interest income to $43.5 million. Loan interest income, excluding accretion and amortization of loss share receivable
2
Exhibit 99.1
increased $8.7 million, while net purchase discount accretion and amortization of loss share receivable increased $813,000 during the twelve months ended September 30, 2016, partly due to the discontinuation of the Company's loss-sharing agreements and resultant discontinuation of amortization of the FDIC loss share receivable, which totaled $2.4 million during the year ended September 30, 2015. Income on interest-earning deposits in other financial institutions increased $123,000 due to higher cash balances as well as the Federal Reserve's decision to increase interest rates in December of 2015.
Under purchase accounting rules, the Company currently expects to realize remaining loan discount accretion of $462,000 over the next four quarters related to its acquisition of the First National Bank of Florida and $2.6 million related to the CBS acquisition over the life of the loans acquired.
Provision for Loan Losses
The Company recorded a negative provision for loan losses of $150,000 and $250,000 in the quarter and year ended September 30, 2016, respectively, due to the continued positive credit quality trends of the loan portfolio and net recoveries of previously charged-off loans. No provision was recorded in the three and 12 months ended September 30, 2015.
Noninterest Income and Expense
Noninterest income for the quarter ended September 30, 2016 increased to $4.9 million, compared with $1.5 million for the prior-year period. The increase was due to a $2.5 million impairment charge to the Company's FDIC receivable for loss sharing agreements taken in the fourth quarter of 2015 as part of the early termination of the agreements, along with a $413,000 increase in bankcard fee and other deposit fee income and a $350,000 increase in gain on sale of loans and servicing released loan fees in the current-year quarter.
Noninterest expense for the quarter ended September 30, 2016 increased $1.4 million to $11.4 million, compared with the same period in fiscal 2015, due in part to an increase of $1.0 million in salaries and employee benefits, $103,000 of which was attributable to merger expenses in the form of severance payments and contract buyouts. Additionally, occupancy and data processing expenses increased $289,000 and $104,000 to $1.4 million and $904,000, respectively, while the net benefit of operations of real estate owned increased $290,000 to $309,000 as a result of several gains on the sales of real estate. The Company's efficiency ratio for the quarter and year ended September 30, 2016 was 66.33% and 71.93%, respectively, compared to 92.49% and 81.47% for the same periods in 2015.
"Our improved efficiency ratio shows the impact of the additional operating leverage from the CBS acquisition," Mr. Johnson said.
Noninterest income for the year ended September 30, 2016 increased $8.6 million to $21.0 million, compared with $12.3 million for the prior-year period. The improvement was due to $3.6 million in nonrecurring recoveries on loans that were previously covered by loss share agreements with the FDIC and a prior-year $2.4 million impairment charge to the FDIC receivable for loss sharing agreements, along with increases of $1.5 million in bankcard fee and other deposit fee income and $506,000 in gain on sale of loans and servicing released loan fees.
Noninterest expense for the year ended September 30, 2016 increased $8.6 million to $45.4 million, compared with the same period in fiscal 2015. The increase was partly attributable to merger-related costs for the current year period, which totaled $4.2 million, largely concentrated in severance costs, data processing expenses and legal and professional fees. The acquisition also impacted ongoing operational costs due to increased payroll and operational expenses. There were smaller increases in legacy operations in compensation and professional fees. These increases were offset slightly by a $371,000 decrease in the net cost of operations of real estate owned.
Asset Quality
Asset quality remained strong with nonperforming assets at 0.45% of total assets and the allowance for loan losses at 1.03% of total loans and 277.66% of nonperforming loans at September 30, 2016. Not included in the allowance is $2.6 million in yield and credit discounts on the CBS acquired loans. The allowance for loan losses was 1.35% of legacy loans. The Company recorded net loan recoveries of $404,000 and $1.1 million in its allowance for loan losses for the quarter and year ended September 30, 2016, respectively, compared with net loan recoveries of $55,000 and $18,000 for the same periods in fiscal 2015.
Capital Management
The company did not repurchase shares during the quarter ended September 30, 2016. Beginning with the first quarter of fiscal 2014 through the third quarter of fiscal 2016, the Company repurchased 8.1 million shares, or 35.6%, of the Company's common stock for $91.9 million. On October 25, 2016, the company announced an increased dividend of $0.055 per share, up from the $0.05 per share dividend announced in the previous 14 quarters.
3
Exhibit 99.1
Mr. Johnson concluded, “With slightly less than two full quarters since the CBS acquisition, we have seen significant improvements in our return on assets and return on equity for the year to 0.98% and 5.90%, respectively, and we have added significant leverage to both our capital and operational structure. We are well-positioned to continue leveraging our expense structure and capital through organic and potential acquisitive growth. Our acquisition strategy is to seek out targets with an enduring loan portfolio, quality retail deposits and strongly accretive earnings. We continue to look for potential acquisitions that are additive to our existing franchise and will focus on these factors to maximize returns to our shareholders."
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,” “planned,” “intend,” “focused on,” “estimated,” “working on,” “continue to,” “seek,” "leverage," and “potential.” Examples of forward-looking statements include, but are not limited to, statements regarding future growth, profitability, expense reduction, improvements in income and margins, increasing stockholder value, and estimates with respect to our financial condition and results of operation and business that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include but are not limited to the Company's inability to implement its business strategy; general and local economic conditions; changes in interest rates, deposit flows, demand for mortgages and other loans, real estate values, and competition; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating an increase in borrowing to fund loans and investments; the changing exposure to credit risk; the inability to identify suitable future acquisition targets; the potential inability to effectively manage the new businesses and lending teams that transitioned from Community Bank of the South; 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; 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, 2015. 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.
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Exhibit 99.1
Charter Financial Corporation
Condensed Consolidated Statements of Financial Condition (unaudited)
September 30, 2016 | September 30, 2015 (1) | ||||||
Assets | |||||||
Cash and amounts due from depository institutions | $ | 14,472,867 | $ | 9,921,822 | |||
Interest-earning deposits in other financial institutions | 77,376,632 | 20,421,403 | |||||
Cash and cash equivalents | 91,849,499 | 30,343,225 | |||||
Loans held for sale, fair value of $2,991,756 and $1,444,042 | 2,941,982 | 1,406,902 | |||||
Certificates of deposit held at other financial institutions | 14,496,410 | — | |||||
Investment securities available for sale | 206,336,287 | 184,404,089 | |||||
Federal Home Loan Bank stock | 3,361,800 | 3,515,600 | |||||
Restricted securities, at cost | 279,000 | — | |||||
Loans receivable | 1,005,702,737 | 725,673,178 | |||||
Unamortized loan origination fees, net | (1,278,830 | ) | (1,423,456 | ) | |||
Allowance for loan losses | (10,371,416 | ) | (9,488,512 | ) | |||
Loans receivable, net | 994,052,491 | 714,761,210 | |||||
Other real estate owned | 2,706,461 | 3,410,538 | |||||
Accrued interest and dividends receivable | 3,442,051 | 2,668,406 | |||||
Premises and equipment, net | 28,078,591 | 19,660,012 | |||||
Goodwill | 29,793,756 | 4,325,282 | |||||
Other intangible assets, net of amortization | 2,639,608 | 157,226 | |||||
Cash surrender value of life insurance | 49,268,973 | 48,423,510 | |||||
Deferred income taxes | 5,416,625 | 5,674,095 | |||||
Other assets | 8,349,888 | 8,329,239 | |||||
Total assets | $ | 1,443,013,422 | $ | 1,027,079,334 | |||
Liabilities and Stockholders’ Equity | |||||||
Liabilities: | |||||||
Deposits | $ | 1,161,843,586 | $ | 738,855,076 | |||
Federal Home Loan Bank advances | 50,000,000 | 62,000,000 | |||||
Floating rate junior subordinated debt | 6,587,549 | — | |||||
Advance payments by borrowers for taxes and insurance | 2,298,513 | 1,745,753 | |||||
Other liabilities | 19,134,238 | 19,547,895 | |||||
Total liabilities | 1,239,863,886 | 822,148,724 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value; 15,031,076 shares issued and outstanding at September 30, 2016 and 16,027,654 shares issued and outstanding at September 30, 2015 | 150,311 | 160,277 | |||||
Preferred stock, $0.01 par value; 50,000,000 shares authorized at September 30, 2016 and September 30, 2015 | — | — | |||||
Additional paid-in capital | 83,651,623 | 95,355,054 | |||||
Unearned compensation – ESOP | (5,106,169 | ) | (5,551,193 | ) | |||
Retained earnings | 123,349,890 | 114,362,386 | |||||
Accumulated other comprehensive income | 1,103,881 | 604,086 | |||||
Total stockholders’ equity | 203,149,536 | 204,930,610 | |||||
Total liabilities and stockholders’ equity | $ | 1,443,013,422 | $ | 1,027,079,334 | |||
__________________________________
(1) | Financial information at September 30, 2015 has been derived from audited financial statements. |
5
Exhibit 99.1
Charter Financial Corporation
Condensed Consolidated Statements of Income (unaudited)
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income: | |||||||||||||||
Loans receivable | $ | 12,680,420 | $ | 9,542,999 | $ | 43,548,848 | $ | 36,375,782 | |||||||
Taxable investment securities | 938,603 | 934,694 | 3,742,085 | 3,655,493 | |||||||||||
Nontaxable investment securities | 4,955 | — | 11,657 | 12,417 | |||||||||||
Federal Home Loan Bank stock | 40,778 | 33,945 | 154,272 | 142,947 | |||||||||||
Interest-earning deposits in other financial institutions | 103,924 | 7,973 | 216,736 | 93,432 | |||||||||||
Certificates of deposit held at other financial institutions | 50,999 | — | 105,451 | — | |||||||||||
Restricted securities | 2,510 | — | 5,013 | — | |||||||||||
Amortization of FDIC loss share receivable | — | — | — | (2,387,205 | ) | ||||||||||
Total interest income | 13,822,189 | 10,519,611 | 47,784,062 | 37,892,866 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 1,117,586 | 663,474 | 3,452,758 | 2,727,372 | |||||||||||
Borrowings | 386,975 | 559,800 | 1,955,445 | 2,285,550 | |||||||||||
Floating rate junior subordinated debt | 117,801 | — | 221,571 | — | |||||||||||
Total interest expense | 1,622,362 | 1,223,274 | 5,629,774 | 5,012,922 | |||||||||||
Net interest income | 12,199,827 | 9,296,337 | 42,154,288 | 32,879,944 | |||||||||||
Provision for loan losses | (150,000 | ) | — | (250,000 | ) | — | |||||||||
Net interest income after provision for loan losses | 12,349,827 | 9,296,337 | 42,404,288 | 32,879,944 | |||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 1,860,824 | 1,690,972 | 7,043,693 | 6,449,248 | |||||||||||
Bankcard fees | 1,318,650 | 1,075,541 | 4,953,645 | 4,032,421 | |||||||||||
Gain (loss) on investment securities available for sale | — | — | 48,885 | (27,209 | ) | ||||||||||
Bank owned life insurance | 332,594 | 320,565 | 1,225,422 | 1,245,382 | |||||||||||
Gain on sale of loans and loan servicing release fees | 808,228 | 458,699 | 2,118,012 | 1,612,335 | |||||||||||
Brokerage commissions | 198,670 | 164,987 | 650,727 | 732,336 | |||||||||||
Recoveries on acquired loans previously covered under FDIC loss share agreements | — | — | 3,625,000 | — | |||||||||||
FDIC receivable for loss sharing agreements impairment | — | (2,529,134 | ) | — | (2,434,903 | ) | |||||||||
Other | 398,791 | 314,535 | 1,298,746 | 719,620 | |||||||||||
Total noninterest income | 4,917,757 | 1,496,165 | 20,964,130 | 12,329,230 | |||||||||||
Noninterest expenses: | |||||||||||||||
Salaries and employee benefits | 6,634,984 | 5,585,634 | 25,655,810 | 20,712,215 | |||||||||||
Occupancy | 1,397,882 | 1,109,286 | 5,139,533 | 4,380,783 | |||||||||||
Data processing | 903,769 | 799,864 | 4,427,636 | 2,931,736 | |||||||||||
Legal and professional | 462,627 | 404,274 | 2,314,519 | 1,382,300 | |||||||||||
Marketing | 421,130 | 464,496 | 1,590,171 | 1,639,943 | |||||||||||
Federal insurance premiums and other regulatory fees | 239,912 | 191,337 | 859,125 | 755,872 | |||||||||||
Net (benefit) cost of operations of real estate owned | (309,222 | ) | (19,011 | ) | (334,954 | ) | 35,562 | ||||||||
Furniture and equipment | 239,817 | 278,160 | 870,675 | 881,465 | |||||||||||
Postage, office supplies and printing | 276,588 | 186,055 | 868,674 | 872,837 | |||||||||||
Core deposit intangible amortization expense | 157,773 | 60,045 | 415,617 | 266,451 | |||||||||||
Other | 928,310 | 922,206 | 3,591,408 | 2,972,536 | |||||||||||
Total noninterest expenses | 11,353,570 | 9,982,346 | 45,398,214 | 36,831,700 | |||||||||||
Income before income taxes | 5,914,014 | 810,156 | 17,970,204 | 8,377,474 | |||||||||||
Income tax expense | 2,103,296 | 257,463 | 6,106,884 | 2,805,312 | |||||||||||
Net income | $ | 3,810,718 | $ | 552,693 | $ | 11,863,320 | $ | 5,572,162 | |||||||
Basic net income per share | $ | 0.27 | $ | 0.04 | $ | 0.83 | $ | 0.35 | |||||||
Diluted net income per share | $ | 0.26 | $ | 0.04 | $ | 0.79 | $ | 0.34 | |||||||
Weighted average number of common shares outstanding | 14,185,824 | 15,299,717 | 14,371,126 | 15,717,421 | |||||||||||
Weighted average number of common and potential common shares outstanding | 14,798,042 | 15,982,127 | 14,983,344 | 16,399,831 | |||||||||||
6
Exhibit 99.1
Charter Financial Corporation
Supplemental Financial Data (unaudited)
in thousands except per share data
Quarter to Date | Year to Date | |||||||||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 (1) | 9/30/2016 | 9/30/2015 (1) | ||||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||||||||||
Total assets | $ | 1,443,013 | $ | 1,427,851 | $ | 1,051,281 | $ | 1,004,880 | $ | 1,027,079 | $ | 1,443,013 | $ | 1,027,079 | ||||||||||||||
Cash and cash equivalents | 91,849 | 106,108 | 79,331 | 51,881 | 30,343 | 91,849 | 30,343 | |||||||||||||||||||||
Loans receivable, net | 994,052 | 993,786 | 701,399 | 679,870 | 714,761 | 994,052 | 714,761 | |||||||||||||||||||||
Other real estate owned | 2,706 | 3,181 | 2,711 | 3,165 | 3,411 | 2,706 | 3,411 | |||||||||||||||||||||
Securities available for sale | 206,336 | 169,737 | 172,197 | 175,988 | 184,404 | 206,336 | 184,404 | |||||||||||||||||||||
Transaction accounts | 478,028 | 472,123 | 353,834 | 331,570 | 327,373 | 478,028 | 327,373 | |||||||||||||||||||||
Total deposits | 1,161,844 | 1,155,245 | 791,692 | 744,234 | 738,855 | 1,161,844 | 738,855 | |||||||||||||||||||||
Borrowings | 56,588 | 56,553 | 50,000 | 50,000 | 62,000 | 56,588 | 62,000 | |||||||||||||||||||||
Total stockholders’ equity | 203,150 | 199,800 | 198,031 | 198,368 | 204,931 | 203,150 | 204,931 | |||||||||||||||||||||
Consolidated earnings summary: | ||||||||||||||||||||||||||||
Interest income | $ | 13,822 | $ | 13,635 | $ | 9,888 | $ | 10,439 | $ | 10,519 | $ | 47,784 | $ | 37,893 | ||||||||||||||
Interest expense | 1,622 | 1,552 | 1,237 | 1,218 | 1,223 | 5,630 | 5,013 | |||||||||||||||||||||
Net interest income | 12,200 | 12,083 | 8,651 | 9,221 | 9,296 | 42,154 | 32,880 | |||||||||||||||||||||
Provision for loan losses | (150 | ) | (100 | ) | — | — | — | (250 | ) | — | ||||||||||||||||||
Net interest income after provision for loan losses | 12,350 | 12,183 | 8,651 | 9,221 | 9,296 | 42,404 | 32,880 | |||||||||||||||||||||
Noninterest income | 4,918 | 4,703 | 4,513 | 6,831 | 1,496 | 20,964 | 12,329 | |||||||||||||||||||||
Noninterest expense | 11,354 | 15,064 | 9,903 | 9,079 | 9,982 | 45,398 | 36,832 | |||||||||||||||||||||
Income tax expense | 2,103 | 527 | 1,118 | 2,359 | 257 | 6,107 | 2,805 | |||||||||||||||||||||
Net income | $ | 3,811 | $ | 1,295 | $ | 2,143 | $ | 4,614 | $ | 553 | $ | 11,863 | $ | 5,572 | ||||||||||||||
Per share data: | ||||||||||||||||||||||||||||
Earnings per share – basic | $ | 0.27 | $ | 0.09 | $ | 0.15 | $ | 0.31 | $ | 0.04 | $ | 0.83 | $ | 0.35 | ||||||||||||||
Earnings per share – fully diluted | $ | 0.26 | $ | 0.09 | $ | 0.14 | $ | 0.30 | $ | 0.04 | $ | 0.79 | $ | 0.34 | ||||||||||||||
Cash dividends per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 | ||||||||||||||
Weighted average basic shares | 14,186 | 14,185 | 14,225 | 14,886 | 15,300 | 14,371 | 15,717 | |||||||||||||||||||||
Weighted average diluted shares | 14,798 | 14,842 | 14,910 | 15,545 | 15,982 | 14,983 | 16,400 | |||||||||||||||||||||
Total shares outstanding | 15,031 | 15,031 | 15,026 | 15,229 | 16,028 | 15,031 | 16,028 | |||||||||||||||||||||
Book value per share | $ | 13.52 | $ | 13.29 | $ | 13.18 | $ | 13.03 | $ | 12.79 | $ | 13.52 | $ | 12.79 | ||||||||||||||
Tangible book value per share (2) | $ | 11.36 | $ | 11.11 | $ | 12.89 | $ | 12.73 | $ | 12.48 | $ | 11.36 | $ | 12.48 | ||||||||||||||
__________________________________
(1) | Financial information at and for the year ended September 30, 2015 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. |
7
Exhibit 99.1
Charter Financial Corporation
Supplemental Information (unaudited)
dollars in thousands
Quarter to Date | Year to Date | |||||||||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | ||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||
1-4 family residential real estate | $ | 236,940 | $ | 234,346 | $ | 190,180 | $ | 182,297 | $ | 188,044 | $ | 236,940 | $ | 188,044 | ||||||||||||||
Commercial real estate | 595,157 | 586,082 | 392,946 | 396,023 | 416,576 | 595,157 | 416,576 | |||||||||||||||||||||
Commercial | 71,865 | 64,700 | 43,741 | 39,836 | 37,444 | 71,865 | 37,444 | |||||||||||||||||||||
Real estate construction | 80,500 | 104,389 | 72,323 | 61,816 | 77,217 | 80,500 | 77,217 | |||||||||||||||||||||
Consumer and other | 21,241 | 15,638 | 13,205 | 10,715 | 6,392 | 21,241 | 6,392 | |||||||||||||||||||||
Total loans receivable (1) | $ | 1,005,703 | $ | 1,005,155 | $ | 712,395 | $ | 690,687 | $ | 725,673 | $ | 1,005,703 | $ | 725,673 | ||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balance at beginning of period | $ | 10,118 | $ | 9,850 | $ | 9,695 | $ | 9,489 | $ | 9,433 | $ | 9,489 | $ | 9,471 | ||||||||||||||
Charge-offs | (1 | ) | (7 | ) | (205 | ) | (15 | ) | (263 | ) | (228 | ) | (529 | ) | ||||||||||||||
Recoveries | 404 | 375 | 360 | 221 | 319 | 1,360 | 547 | |||||||||||||||||||||
Provision | (150 | ) | (100 | ) | — | — | — | (250 | ) | — | ||||||||||||||||||
Balance at end of period | $ | 10,371 | $ | 10,118 | $ | 9,850 | $ | 9,695 | $ | 9,489 | $ | 10,371 | $ | 9,489 | ||||||||||||||
Nonperforming assets: (2) | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 3,735 | $ | 3,371 | $ | 2,098 | $ | 2,463 | $ | 4,114 | $ | 3,735 | $ | 4,114 | ||||||||||||||
Loans delinquent 90 days or greater and still accruing | — | — | 52 | 14 | 14 | — | 14 | |||||||||||||||||||||
Total nonperforming loans | 3,735 | 3,371 | 2,150 | 2,477 | 4,128 | 3,735 | 4,128 | |||||||||||||||||||||
Other real estate owned (3) | 2,706 | 3,181 | 2,711 | 3,165 | 3,411 | 2,706 | 3,411 | |||||||||||||||||||||
Total nonperforming assets | $ | 6,441 | $ | 6,552 | $ | 4,861 | $ | 5,642 | $ | 7,539 | $ | 6,441 | $ | 7,539 | ||||||||||||||
Troubled debt restructuring: | ||||||||||||||||||||||||||||
Troubled debt restructurings - accruing | $ | 4,585 | $ | 4,999 | $ | 7,267 | $ | 7,265 | $ | 6,046 | $ | 4,585 | $ | 6,046 | ||||||||||||||
Troubled debt restructurings - nonaccrual | 1,760 | 1,716 | 332 | 317 | 1,607 | 1,760 | 1,607 | |||||||||||||||||||||
Total troubled debt restructurings | $ | 6,345 | $ | 6,715 | $ | 7,599 | $ | 7,582 | $ | 7,653 | $ | 6,345 | $ | 7,653 | ||||||||||||||
__________________________________
(1) | Included in the loan balances are loans that were previously covered under loss share agreements with the FDIC in the amount of $46.8 million at September 30, 2015. |
(2) | Loans being accounted for under purchase accounting rules which have associated accretion income established at the time of acquisition remaining to recognize, that were greater than 90 days delinquent or otherwise considered nonperforming loans are excluded from this table. |
(3) | Included in the balances is OREO that was previously covered under loss share agreements with the FDIC in the amount of $2.4 million at September 30, 2015. |
8
Exhibit 99.1
Charter Financial Corporation
Supplemental Information (unaudited)
Quarter to Date | Year to Date | ||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | |||||||||||||||
Return on equity (annualized) | 7.55 | % | 2.61 | % | 4.32 | % | 8.97 | % | 1.06 | % | 5.90 | % | 2.62 | % | |||||||
Return on assets (annualized) | 1.07 | % | 0.38 | % | 0.83 | % | 1.83 | % | 0.22 | % | 0.98 | % | 0.56 | % | |||||||
Net interest margin (annualized) | 3.82 | % | 3.97 | % | 3.72 | % | 4.03 | % | 4.05 | % | 3.89 | % | 3.67 | % | |||||||
Net interest margin, excluding the effects of purchase accounting (1) | 3.47 | % | 3.53 | % | 3.36 | % | 3.51 | % | 3.37 | % | 3.47 | % | 3.26 | % | |||||||
Bank tier 1 leverage ratio (2) | 11.51 | % | 11.32 | % | 17.13 | % | 17.19 | % | 16.04 | % | 11.51 | % | 16.04 | % | |||||||
Bank total risk-based capital ratio | 15.26 | % | 14.99 | % | 22.98 | % | 23.23 | % | 21.71 | % | 15.26 | % | 21.71 | % | |||||||
Effective tax rate | 35.56 | % | 28.91 | % | 34.28 | % | 33.83 | % | 31.78 | % | 33.98 | % | 33.49 | % | |||||||
Yield on loans | 5.07 | % | 5.20 | % | 5.03 | % | 5.33 | % | 5.40 | % | 5.15 | % | 5.13 | % | |||||||
Cost of deposits | 0.46 | % | 0.43 | % | 0.42 | % | 0.42 | % | 0.42 | % | 0.43 | % | 0.44 | % | |||||||
Asset quality ratios: (3) | |||||||||||||||||||||
Allowance for loan losses as a % of total loans (4) | 1.03 | % | 1.00 | % | 1.38 | % | 1.40 | % | 1.30 | % | 1.03 | % | 1.30 | % | |||||||
Allowance for loan losses as a % of nonperforming loans | 277.66 | % | 300.10 | % | 458.13 | % | 391.42 | % | 229.85 | % | 277.66 | % | 229.85 | % | |||||||
Nonperforming assets as a % of total loans and OREO | 0.64 | % | 0.65 | % | 0.68 | % | 0.81 | % | 1.04 | % | 0.64 | % | 1.04 | % | |||||||
Nonperforming assets as a % of total assets | 0.45 | % | 0.46 | % | 0.46 | % | 0.56 | % | 0.73 | % | 0.45 | % | 0.73 | % | |||||||
Net charge-offs (recoveries) as a % of average loans (annualized) | (0.16 | )% | (0.15 | )% | (0.09 | )% | (0.12 | )% | (0.15 | )% | (0.13 | )% | — | % | |||||||
__________________________________
(1) | Net interest income excluding accretion and amortization of acquired loans divided by average net interest earning assets excluding average loan accretable discounts, a non-GAAP measure, in the amount of $3.8 million, $4.7 million, $2.0 million, $3.1 million and $3.8 million for the quarters ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively. |
(2) | During the quarter ended June 30, 2016, a net downstream of capital was made between the holding company and the bank in the amount of $6.1 million as part of the Company's acquisition of CBS. |
(3) | Ratios for the three and twelve months ended September 30, 2016 and 2015, and the three months ended June 30, 2016, March 31, 2016, and December 31, 2015 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. |
(4) | Accounting requirements for the third quarter 2016 acquisition of CBS have affected the comparability of the allowance for loan losses as a percentage of loans. Excluding former CBS loans totaling $236.4 million and $264.7 million at September 30, 2016, and June 30, 2016, respectively, which were recorded at acquisition date fair value, the allowance approximated 1.35% and 1.37% of all other loans at September 30, 2016 and June 30, 2016, respectively. |
9
Exhibit 99.1
Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
Quarter to Date | |||||||||||||||||||||
9/30/2016 | 9/30/2015 | ||||||||||||||||||||
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 | $ | 85,687 | $ | 104 | 0.49 | % | $ | 21,165 | $ | 8 | 0.15 | % | |||||||||
Certificates of deposit held at other financial institutions | 16,395 | 51 | 1.24 | — | — | — | |||||||||||||||
FHLB common stock and other equity securities | 3,362 | 41 | 4.85 | 3,387 | 34 | 4.01 | |||||||||||||||
Taxable investment securities | 169,555 | 939 | 2.21 | 187,117 | 934 | 2.00 | |||||||||||||||
Nontaxable investment securities (1) | 1,607 | 5 | 1.23 | — | — | — | |||||||||||||||
Restricted securities | 279 | 3 | 3.60 | — | — | — | |||||||||||||||
Loans receivable (1)(2)(3)(4) | 1,001,096 | 11,590 | 4.63 | 706,724 | 8,009 | 4.53 | |||||||||||||||
Accretion and amortization of acquired loan discounts (5) | 1,090 | 0.43 | 1,534 | 0.86 | |||||||||||||||||
Total interest-earning assets | 1,277,981 | 13,823 | 4.33 | 918,393 | 10,519 | 4.58 | |||||||||||||||
Total noninterest-earning assets | 148,359 | 98,994 | |||||||||||||||||||
Total assets | $ | 1,426,340 | $ | 1,017,387 | |||||||||||||||||
Liabilities and Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest bearing checking | $ | 239,141 | $ | 97 | 0.15 | % | $ | 178,538 | $ | 57 | 0.13 | % | |||||||||
Bank rewarded checking | 50,566 | 24 | 0.19 | 46,915 | 23 | 0.20 | |||||||||||||||
Savings accounts | 63,196 | 7 | 0.04 | 51,300 | 3 | 0.02 | |||||||||||||||
Money market deposit accounts | 241,286 | 180 | 0.30 | 126,889 | 69 | 0.22 | |||||||||||||||
Certificate of deposit accounts | 373,197 | 810 | 0.87 | 232,738 | 511 | 0.88 | |||||||||||||||
Total interest-bearing deposits | 967,386 | 1,118 | 0.46 | 636,380 | 663 | 0.42 | |||||||||||||||
Borrowed funds | 50,000 | 387 | 3.10 | 58,773 | 560 | 3.81 | |||||||||||||||
Floating rate junior subordinated debt | 6,564 | 118 | 7.18 | — | — | — | |||||||||||||||
Total interest-bearing liabilities | 1,023,950 | 1,623 | 0.63 | 695,153 | 1,223 | 0.70 | |||||||||||||||
Noninterest-bearing deposits | 180,015 | 100,544 | |||||||||||||||||||
Other noninterest-bearing liabilities | 20,605 | 13,379 | |||||||||||||||||||
Total noninterest-bearing liabilities | 200,620 | 113,923 | |||||||||||||||||||
Total liabilities | 1,224,570 | 809,076 | |||||||||||||||||||
Total stockholders' equity | 201,770 | 208,311 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,426,340 | $ | 1,017,387 | |||||||||||||||||
Net interest income | $ | 12,200 | $ | 9,296 | |||||||||||||||||
Net interest earning assets (6) | $ | 254,031 | $ | 223,240 | |||||||||||||||||
Net interest rate spread (7) | 3.70 | % | 3.88 | % | |||||||||||||||||
Net interest margin (8) | 3.82 | % | 4.05 | % | |||||||||||||||||
Net interest margin, excluding the effects of purchase accounting (9) | 3.47 | % | 3.37 | % | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 124.81 | % | 132.11 | % | |||||||||||||||||
__________________________________
(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 and amortization of the indemnification asset. |
(5) | Accretion of accretable purchase discount on loans acquired and amortization of the overstatement of FDIC indemnification asset. |
(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) | Net interest margin, excluding the effects of purchase accounting, a non-GAAP measure, represents net interest income excluding accretion and amortization of acquired loans receivable as a percentage of average net interest earning assets excluding loan accretable discounts in the amount of $3.8 million and $3.8 million for the quarters ended September 30, 2016 and September 30, 2015, respectively. |
(10) | Annualized. |
10
Exhibit 99.1
Charter Financial Corporation
Average Balances, Interest Rates and Yields (unaudited)
dollars in thousands
Fiscal Year to Date | |||||||||||||||||||||
9/30/2016 | 9/30/2015 | ||||||||||||||||||||
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 | $ | 52,667 | $ | 217 | 0.41 | % | $ | 42,836 | $ | 93 | 0.22 | % | |||||||||
Certificates of deposit held at other financial institutions | 8,946 | 105 | 1.18 | — | — | — | |||||||||||||||
FHLB common stock and other equity securities | 3,222 | 154 | 4.79 | 3,304 | 143 | 4.33 | |||||||||||||||
Taxable investment securities | 173,888 | 3,742 | 2.15 | 183,956 | 3,656 | 1.99 | |||||||||||||||
Nontaxable investment securities (1) | 997 | 12 | 1.17 | 2,988 | 12 | 0.42 | |||||||||||||||
Restricted securities | 129 | 5 | 3.89 | — | — | — | |||||||||||||||
Loans receivable (1)(2)(3)(4) | 845,014 | 39,178 | 4.64 | 662,283 | 30,431 | 4.59 | |||||||||||||||
Accretion and amortization of acquired loan discounts (5) | 4,371 | 0.52 | 3,558 | 0.53 | |||||||||||||||||
Total interest-earning assets | 1,084,863 | 47,784 | 4.40 | 895,367 | 37,893 | 4.23 | |||||||||||||||
Total noninterest-earning assets | 122,069 | 105,145 | |||||||||||||||||||
Total assets | $ | 1,206,932 | $ | 1,000,512 | |||||||||||||||||
Liabilities and Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest bearing checking | $ | 206,985 | $ | 278 | 0.13 | % | $ | 171,792 | $ | 214 | 0.12 | % | |||||||||
Bank rewarded checking | 49,077 | 97 | 0.20 | 48,272 | 100 | 0.21 | |||||||||||||||
Savings accounts | 56,963 | 23 | 0.04 | 49,782 | 10 | 0.02 | |||||||||||||||
Money market deposit accounts | 185,818 | 522 | 0.28 | 125,151 | 265 | 0.21 | |||||||||||||||
Certificate of deposit accounts | 297,270 | 2,533 | 0.85 | 227,917 | 2,138 | 0.94 | |||||||||||||||
Total interest-bearing deposits | 796,113 | 3,453 | 0.43 | 622,914 | 2,727 | 0.44 | |||||||||||||||
Borrowed funds | 51,181 | 1,955 | 3.82 | 54,513 | 2,286 | 4.19 | |||||||||||||||
Floating rate junior subordinated debt | 3,022 | 222 | 7.33 | — | — | — | |||||||||||||||
Total interest-bearing liabilities | 850,316 | 5,630 | 0.66 | 677,427 | 5,013 | 0.74 | |||||||||||||||
Noninterest-bearing deposits | 140,423 | 98,340 | |||||||||||||||||||
Other noninterest-bearing liabilities | 15,040 | 12,203 | |||||||||||||||||||
Total noninterest-bearing liabilities | 155,463 | 110,543 | |||||||||||||||||||
Total liabilities | 1,005,779 | 787,970 | |||||||||||||||||||
Total stockholders' equity | 201,153 | 212,542 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,206,932 | $ | 1,000,512 | |||||||||||||||||
Net interest income | $ | 42,154 | $ | 32,880 | |||||||||||||||||
Net interest earning assets (6) | $ | 234,547 | $ | 217,940 | |||||||||||||||||
Net interest rate spread (7) | 3.74 | % | 3.49 | % | |||||||||||||||||
Net interest margin (8) | 3.89 | % | 3.67 | % | |||||||||||||||||
Net interest margin, excluding the effects of purchase accounting (9) | 3.47 | % | 3.26 | % | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 127.58 | % | 132.17 | % | |||||||||||||||||
__________________________________
(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 and amortization of the indemnification asset. |
(5) | Accretion of accretable purchase discount on loans acquired and amortization of the overstatement of FDIC indemnification asset. |
(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) | Net interest margin, excluding the effects of purchase accounting, a non-GAAP measure, represents net interest income excluding accretion and amortization of acquired loans receivable as a percentage of average net interest earning assets excluding loan accretable discounts in the amount of $3.4 million and $4.6 million for the twelve months ended September 30, 2016 and September 30, 2015, respectively. |
(10) | Annualized. |
11
Exhibit 99.1
Charter Financial Corporation
Reconciliation of Non-GAAP Measures (unaudited)
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. Charter Financial management uses non-GAAP financial measures, including loans receivable income excluding accretion and amortization of loss share receivable, net interest margin excluding the effects of purchase accounting, and tangible book value per share, in its analysis of the Company's performance. Loans receivable income excluding accretion and amortization of loss share receivable excludes the following from loans receivable income: accretion from purchase discounts related to acquired loans and amortization of the FDIC loss share receivable. Net interest margin excluding the effects of purchase accounting excludes the following from net interest margin: net purchase discount accretion and amortization and the average balance of purchase discounts. Tangible book value per share excludes the following from book value per share: the balance of goodwill and other intangible assets.
Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company and provide meaningful comparison to its peers. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
For the Quarters Ended | |||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | |||||||||||||||
Loans Receivable Income Excluding Accretion and Amortization of Loss Share Receivable | |||||||||||||||||||
Loans receivable income | $ | 12,680,420 | $ | 12,563,466 | $ | 8,863,437 | $ | 9,441,525 | $ | 9,542,999 | |||||||||
Loan purchase discount accretion | 1,090,886 | 1,278,040 | 833,179 | 1,168,982 | 1,533,850 | ||||||||||||||
Amortization of FDIC loss share receivable | — | — | — | — | — | ||||||||||||||
Net purchase discount accretion and amortization | 1,090,886 | 1,278,040 | 833,179 | 1,168,982 | 1,533,850 | ||||||||||||||
Loans receivable income excluding accretion and amortization of loss share receivable (Non-GAAP) | $ | 11,589,534 | $ | 11,285,426 | $ | 8,030,258 | $ | 8,272,543 | $ | 8,009,149 | |||||||||
Net Interest Margin Excluding the Effects of Purchase Accounting | |||||||||||||||||||
Net Interest Margin | 3.82 | % | 3.97 | % | 3.72 | % | 4.03 | % | 4.05 | % | |||||||||
Effect to adjust for net purchase discount accretion and amortization | (0.35 | ) | (0.44 | ) | (0.36 | ) | (0.52 | ) | (0.68 | ) | |||||||||
Net interest margin excluding the effects of purchase accounting (Non-GAAP) | 3.47 | % | 3.53 | % | 3.36 | % | 3.51 | % | 3.37 | % | |||||||||
Tangible Book Value Per Share | |||||||||||||||||||
Book value per share | $ | 13.52 | $ | 13.29 | $ | 13.18 | $ | 13.03 | $ | 12.79 | |||||||||
Effect to adjust for goodwill and other intangible assets | (2.16 | ) | (2.18 | ) | (0.29 | ) | (0.30 | ) | (0.31 | ) | |||||||||
Tangible book value per share (Non-GAAP) | $ | 11.36 | $ | 11.11 | $ | 12.89 | $ | 12.73 | $ | 12.48 | |||||||||
12
Exhibit 99.1
For the Years Ended | |||||||
9/30/2016 | 9/30/2015 | ||||||
Loans Receivable Income Excluding Accretion and Amortization of Loss Share Receivable | |||||||
Loans receivable income | $ | 43,548,848 | $ | 36,375,782 | |||
Loan purchase discount accretion | 4,371,087 | 5,945,442 | |||||
Amortization of FDIC loss share receivable | — | (2,387,205 | ) | ||||
Net purchase discount accretion and amortization | 4,371,087 | 3,558,237 | |||||
Loans receivable income excluding accretion and amortization of loss share receivable (Non-GAAP) | $ | 39,177,761 | $ | 32,817,545 | |||
Net Interest Margin Excluding the Effects of Purchase Accounting | |||||||
Net Interest Margin | 3.89 | % | 3.67 | % | |||
Effect to adjust for net purchase discount accretion and amortization | (0.42 | ) | (0.41 | ) | |||
Net interest margin excluding the effects of purchase accounting (Non-GAAP) | 3.47 | % | 3.26 | % | |||
Tangible Book Value Per Share | |||||||
Book value per share | $ | 13.52 | $ | 12.79 | |||
Effect to adjust for goodwill and other intangible assets | (2.16 | ) | (0.31 | ) | |||
Tangible book value per share (Non-GAAP) | $ | 11.36 | $ | 12.48 | |||
13