Charter Financial Announces Acquisition of McIntosh Commercial Bank

WEST POINT, Ga., March 26 /PRNewswire-FirstCall/ -- Charter Financial Corporation (BULLETIN BOARD: CHFN) announced today that its wholly-owned subsidiary, CharterBank, has entered into an agreement with loss sharing with the Federal Deposit Insurance Corporation (FDIC) to purchase the certain assets and assume the deposits and certain other liabilities of McIntosh Commercial Bank, a full service commercial bank headquartered in Carrollton, Georgia. McIntosh Commercial Bank was closed today by the Georgia Department of Banking and Finance which then appointed the FDIC receiver.

All McIntosh Commercial Bank offices with regular Saturday operating hours will open on Saturday, March 27, 2010 as branches of CharterBank. All McIntosh Commercial Bank depositors will automatically become depositors of CharterBank, and deposits will continue to be insured by the FDIC. With this acquisition, CharterBank now operates 17 retail branches in West Georgia and East Alabama.

"We are delighted to welcome the customers of McIntosh Commercial Bank into the CharterBank family," said Robert L. Johnson, Chief Executive Officer of Charter Financial Corporation. "Our goal is to make this transition as easy as possible for McIntosh customers and employees. Because CharterBank elected to assume both insured and non-insured deposits, no customers of McIntosh Commercial Bank will lose any of their deposits."

Johnson added, "In June 2009, CharterBank acquired the assets and deposits of Neighborhood Community Bank in a similar FDIC-assisted transaction and we have successfully completed the systems integration of that transaction. We will work diligently to ensure a smooth transition for our new customers and employees."

Under the loss sharing agreement, the FDIC will reimburse CharterBank for a percentage of the losses on McIntosh Commercial Bank's loans and foreclosed properties. Also, as part of the loss sharing agreement the acquired assets receive favorable treatment for regulatory capital purposes.

As of December 31, 2009, McIntosh Commercial Bank reported total assets of $363 million, loans of $209 million, deposits of $343 million and borrowings of $9 million. Under the terms of CharterBank's agreement with the FDIC, CharterBank has the option to purchase, or to assume the leases on, all four McIntosh Commercial Bank branch locations.

"This acquisition is very good for the customers of McIntosh Commercial Bank and of CharterBank," said Johnson. "McIntosh Commercial Bank's customers will receive enhanced banking services and better convenience. For CharterBank, McIntosh Commercial Bank is a good geographic and cultural fit."

The agreement with the FDIC covers only the assets and liabilities of McIntosh Commercial Bank. Assets, liabilities and common stock of McIntosh Commercial Bank's former parent company, MCB Financial Group, 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 seventeen branches on Interstate highways in West Georgia and East Alabama. The company also operates a loan production office 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, http://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.

Charter Financial Corporation

CONTACT: Robert L. Johnson, President & CEO, [e-mail],
or Curtis R. Kollar, Chief Financial Officer, [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/