Charter Financial Reports Fiscal Second Quarter Earnings

- Net Income $473,000

- Core Capital 10.78%

- $2.2 Million Provision for Loan Losses

- Gain on Sale of Property of $ 1.7 million

WEST POINT, Georgia, May 11 /PRNewswire-FirstCall/ -- Charter Financial
Corporation (OTC Bulletin Board: CHFN) today reported second quarter fiscal
2009 net income of $473,000, or $0.03 per share, compared with $3.9 million,
or $0.20 per share, for same quarter of the prior year. Net income for the
six months ended March 31, 2009 was $1.4 million or $0.08 per share compared
with $5.9 million or $0.31 per share for the comparable period in the prior
year.

Net income for the quarter was impacted by a provision for loan losses of $2.2
million and a gain on the sale of land acquired for a branch site of $1.7
million. Net interest income for the quarter was lower than the comparable
period of the prior year by $1.3 million. This decrease was due to our
receiving no dividends on Freddie Mac securities over the quarter, as opposed
to dividends of $829,000 paid to us in the comparable period of 2008, and our
maintaining higher levels of liquidity in the form of low yielding overnight
funds in the current quarter, combined with higher levels of nonperforming
assets in the second quarter of 2009 compared to the second quarter of 2008.
The prior year quarter also included a gain on the sale of Freddie Mac stock
of $1.3 million and income from covered calls of $2.0 million.

"We continue to monitor our asset quality closely and believe that our loan
loss reserves are adequate", said Robert L. Johnson, President and CEO. "Less
than 15% of our assets are 1-4 family acquisition, development or construction
loans. Our loan loss provision after the current quarter provision is 1.99% of
loans. Capital is strong, with CharterBank's ratio of core capital to assets
equaling 10.78%, more than double the well capitalized requirement of 5%."

Discussing the company's outlook, Johnson said: "We continue to anticipate a
significant boost to the economy in our market area over the next several
years from the new KIA Motors Corporation assembly plant to be located on
Interstate 85 between West Point and LaGrange which is in the middle of our
market focusing on the I-85 corridor."

"The plant is tentatively scheduled to produce the first cars for sale in
December 2009. Kia and its suppliers have announced intentions to employ
approximately 4,300 in West Point, Georgia and several thousand more in
surrounding communities. As a leading community bank in the area, we expect
to see accelerated growth in our retail banking business."

"We continue to make progress in building our retail franchise. Net loans
receivable climbed to a record $449.0 million, which is up $8.6 million from
December 31, 2008 and up $35.0 million from March 31, 2008," concluded
Johnson. Total assets were $797.3 million and total deposits were $433.9
million.

Additional financial information is available at www.charterbank.net.

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 and CharterBank are in a
mutual holding company structure. CharterBank is headquartered in West Point,
Georgia, and operates ten 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.

FINANCIAL TABLES FOLLOW

Charter Financial Corporation

Selected Financial Data (in thousands except share and per share data):

March 31, December 31, September 30, March 31,
2009 2008 2008 2008
Unaudited

Total Assets $797,328 $813,933 $801,501 $905,426
Loans Receivable, Net 449,036 440,476 428,472 414,076
Mortgage Securities
Available for Sale 230,723 234,982 242,848 270,952
Freddie Mac Common Stock - - - 83,999
Other Investment Securities 4,893 34,253 34,291 36,548
Core Deposits* 178,257 166,452 169,499 188,397
Retail Deposits** 339,911 329,585 356,237 390,284
Total Deposits 433,915 432,909 420,175 453,102
Borrowings 257,000 273,000 267,000 257,000
Realized Stockholders'
Equity*** 108,520 108,909 109,152 110,474
Accumulated Other
Comprehensive Income**** (4,407) (5,171) (6,850) 47,413

Total Stockholders' Equity 104,113 103,738 102,302 157,887

Book Value per Share $5.64 $5.60 $5.50 $8.30
Tangible Book Value
per Share 5.35 5.31 5.21 8.01

Minority Shares Outstanding 2,606,559 2,669,836 2,754,536 3,564,622
Total Shares Outstanding 18,464,483 18,527,760 18,612,460 19,028,280
Weighted Average
Total Shares
Outstanding - Basic 18,522,909 18,569,009 19,022,259 19,018,570
Weighted Average
Total Shares
Outstanding - Diluted 18,522,909 18,569,009 19,082,960 19,086,069

* Core Deposits includes transaction accounts, money market accounts,
and savings accounts.
** Retail Deposits includes Core Deposits, and certificates of deposits
excluding brokered and wholesale.
***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%.

Charter Financial Corporation

Selected Operating Data (in thousands except share and per share data):

Three months ended Six months ended
March 31, December 31, March 31,
2009 2008 2008 2009 2008
Unaudited

Total Interest Income $9,241 $11,942 $9,989 $19,229 $24,631
Total Interest Expense 5,394 6,812 5,942 11,336 14,109
Net Interest Income 3,847 5,130 4,047 7,893 10,522
Provision for Loan Losses 2,200 150 350 2,550 150
Net Interest Income after
Provision for Loan Losses 1,647 4,980 3,697 5,343 10,372
Noninterest Income 3,599 5,173 2,295 5,894 7,938
Noninterest Expense 4,705 4,828 4,684 9,389 10,197
Income before Income Taxes 541 5,325 1,308 1,848 8,113
Income Tax Expense 68 1,451 351 419 2,219
Net Income $473 $3,874 $957 $1,429 $5,894

Earnings per Share - Basic $0.03 $0.20 $0.05 $0.08 $0.31
Earnings per Share - Diluted 0.03 0.20 0.05 0.08 0.31
Cash Dividends per Share 0.25 0.50 0.25 0.50 1.00

Net Charge-offs (Recoveries) 1,434 285 225 1,659 803
Deposit Fees 1,044 1,248 1,206 2,250 2,559
Gain on Sale of Loans 184 170 129 312 430
Gain on Sale of Freddie Mac
Common Stock - 1,302 - - 2,649
Gain on Covered Calls
Related to Freddie Mac
Common Stock - 1,993 - - 1,478

Three months ended Six months ended
March 31, December 31, March 31,
2009 2008 2008 2009 2008
Unaudited

Return on Equity 1.78% 9.24% 3.71% 2.73% 6.30%
Return on Assets 0.23 1.70 0.48 0.36 1.25
Net Interest Margin 2.08 2.40 2.21 2.15 2.37
Loan Loss Reserve as a
% of Total Loans 1.99 1.28 1.86 1.99 1.28
Loan Loss Reserve as a
% of Nonperforming Assets 43.17 58.04 61.70 43.17 58.04
Nonperforming Assets as a % of
Total Loans and REO 4.56 2.19 3.00 4.56 2.19
Net Chargeoffs as a % of
Average Loans 1.26 0.27 0.05 0.74 0.39
Nonperforming Assets
to Total Assets 2.65 1.02 1.67 2.65 1.02
Bank Core Capital Ratio 10.78 9.67 10.45 10.78 9.67
Dividend Payout Ratio 141.24 41.11 69.76 93.39 79.10
Effective Tax Rate 12.65 27.25 26.82 22.67 27.36

SOURCE Charter Financial Corporation

Robert L. Johnson, President & CEO, bjohnson@charterbank.net, or Curt Kollar,
CFO, ckollar@charterbank.net, +1-706-645-1391, both of Charter Financial
Corporation; Woody Wallace of The Investor Relations Company, +1-312-245-2700,
wwallace@tirc.com, for Charter Financial Corporation