Charter Financial To Acquire Resurgens Bancorp

6/2/17

WEST POINT, Ga., June 01, 2017 (GLOBE NEWSWIRE) -- Charter Financial Corporation (NASDAQ:CHFN), the holding company of CharterBank, announced today that it has entered into a definitive agreement and plan of merger with Resurgens Bancorp pursuant to which Resurgens will merge with and into Charter and Resurgens Bank will merge with and into CharterBank.

Resurgens, headquartered in Tucker, Georgia, and which operates Resurgens Bank, will add approximately $167 million in assets, $138 million in deposits, and $135 million in gross loans to Charter’s operations, along with two branch locations positioned in Tucker and Decatur, Georgia. Resurgens was founded in 2008 and has built a strong deposit franchise, with core deposits representing 60% of total deposits and noninterest bearing demand deposits representing approximately 20% of total deposits. Resurgens’ loan portfolio complements Charter’s existing loan portfolio. With this combination, approximately 54% of Charter’s loans and deposits are in the Atlanta MSA.

“We are delighted to announce this partnership with Resurgens Bank,” said Robert L. Johnson, Chief Executive Officer and Chairman of Charter and CharterBank. “Charles M. DeWitt III, President and Chief Executive Officer of Resurgens Bank, and his team have done a fantastic job of building Resurgens into a clean, attractive franchise that nicely infills our branch system with two new 'in-town' Atlanta locations. Altogether, the Atlanta MSA will represent 54% of our total loans and deposits and this accord drives us toward our vision of becoming Atlanta’s premier super community bank. I am especially pleased to announce that Charles will stay on to serve as the DeKalb County President of CharterBank.”

Mr. DeWitt, President and Chief Executive Officer of Resurgens, stated, “We are extremely excited to be joining the Charter team. They are growth oriented, exceptionally strong financially and share our values and commitment to community banking in Atlanta. Our customers, employees and the communities we serve will all benefit from this affiliation.”

Under the terms of the definitive agreement, Charter will acquire all of the outstanding shares of Resurgens common stock based upon a purchase price of $17.00 per share paid in cash. The total transaction value is approximately $26.3 million.

The boards of directors of both Charter and Resurgens have unanimously approved the transaction. The transaction is expected to close in the third quarter of 2017, and is subject to approval by Resurgens’ shareholders, receipt of regulatory approvals and other customary closing conditions.

Resurgens was advised by the investment banking firm Sandler O’Neill + Partners, L.P. and the law firm of Nelson Mullins Riley & Scarborough LLP. Charter was advised by the investment banking firm of FIG Partners, LLC and represented by the law firm of Alston & Bird LLP.

About CharterBank

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 the 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.

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