Charter Financial Corporation Announces Increased Appraised Value for 'Second-Step' Stock Offering

WEST POINT, Ga., Feb. 4 /PRNewswire-FirstCall/ -- Charter Financial Corporation (the "Company") (BULLETIN BOARD: CHFN) , the holding company for CharterBank, announced that the independent appraisal firm engaged by the Company in connection with its "second-step" stock offering has informed the Company that, based on the Company's results for the quarter ended December 31, 2009 and other factors, the appraised value of the Company will be increased. Accordingly, the Company will amend its Registration Statement on Form S-1 to reflect the higher appraised value as well as the Company's operating results for the quarter ended December 31, 2009. The higher appraised value remains subject to change based on market conditions and regulatory review.

The stock offering is part of a transaction pursuant to which CharterBank will reorganize from the two-tier mutual holding company structure to the stock holding company structure. The Company now expects that the special meetings of the Company's stockholders and the members of First Charter, MHC to approve the reorganization will be held in the second calendar quarter of 2010.

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 Corporation is headquartered in West Point, Georgia, and operates 13 branches on the I-85 corridor from Peachtree City, Georgia to Auburn, Alabama. Charter Financial Corporation's stock is listed on the Over-The-Counter Bulletin Board. Additional information regarding Charter Financial Corporation can be accessed on-line at http://www.charterbank.net/.

This release is neither an offer to sell nor a solicitation of an offer to buy common stock. The offer is made only by the prospectus when accompanied by a stock order form. The shares of common stock of the Company are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

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 economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; our ability to enter new markets successfully and capitalize in growth opportunities; our ability to successfully integrate acquired entities; our incurring higher than expected loan charge-offs with respect to assets acquired in Federal Deposit Insurance Corporation assisted acquisitions; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies and the Financial Accounting Standards Board; and changes in our organization, compensation and benefit plans. 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.

Charter Financial Corporation

CONTACT: Robert L. Johnson, Chairman & CEO, [e-mail], or
Curt Kollar, CFO, [e-mail], both of Charter Financial
Corporation, [phone]; or Woody Wallace of The Investor Relations
Company, [phone], [e-mail], for Charter Financial
Corporation

Web Site: http://www.charterbank.net/