Charter Financial Announces Acquisition of Neighborhood Community Bank

/PRNewswire/ -- Charter Financial Corporation (OTC Bulletin Board: CHFN) announced today that its wholly-owned subsidiary, CharterBank, has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase the assets and assume the deposit liabilities of Neighborhood Community Bank. The Georgia Department of Banking and Finance declared Neighborhood Community Bank closed today and appointed the FDIC as receiver. The FDIC then assigned the assets and deposit liabilities of Neighborhood Community Bank to CharterBank under a loss sharing agreement.

"We are delighted to welcome the customers of Neighborhood Community to the CharterBank family of valued customers," says Robert L. Johnson, Chief Executive Officer of Charter Financial Corporation. "It is our objective to make this transition as transparent and easy as possible for both Neighborhood Community customers and employees. Because CharterBank elected to assume both insured and non-insured deposits, no customers of Neighborhood Community Bank will lose any of their deposits.

"Under the loss sharing agreement," Johnson continued, "the FDIC will reimburse CharterBank for a percentage of the losses on Neighborhood Community Bank's loans and foreclosed properties. Also, as part of the loss sharing agreement, the acquired assets receive a favorable treatment for regulatory capital purposes so the impact on our regulatory capital ratios will be modest."

As of March 31, 2009, Neighborhood Community Bank reported total assets of $213 million, loans of $154 million, deposits of $190 million and borrowings of $13 million. Under the terms of the agreement, CharterBank has the option to purchase, or to assume the leases on, all four Neighborhood Community Bank locations, all of which extend CharterBank's market in the Interstate 85 corridor.

"This acquisition is very good for the customers of Neighborhood Community Bank and CharterBank," said Johnson. "Neighborhood Community customers will now have enhanced services. For CharterBank, Neighborhood Community Bank fits perfectly into our Interstate 85 corridor by extending the market through Newnan."

The agreement covers only the assets and liabilities of Neighborhood Community Bank. Assets, liabilities and common stock of Neighborhood Community Bank's former parent company, Newnan Coweta Bancshares, Inc., have not been purchased or assumed by CharterBank or Charter Financial Corporation.

Charter Financial Corporation is a savings and loan holding company and the parent of CharterBank, a full-service community bank and a federal savings institution. CharterBank is headquartered in West Point, Georgia, and now operates fourteen branches on the I-85 corridor from Newnan, Georgia, to Auburn, Alabama. The Company also operates three loan production offices in Georgia. CharterBank's deposits are insured by the Federal Deposit Insurance Corporation. Additional information, including financial highlights, is available on the company's website, www.charterbank.net. Persons interested in receiving e-mail notifications of news about the company may do so by completing the registration form on the investor relations page of the company's website.

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