Georgia's Charter Financial Announces Acquisition of the First National Bank of Florida

Press release from the issuing company

Monday, September 12th, 2011

Charter Financial Corporation announced today that its wholly owned subsidiary, CharterBank, has entered into a definitive agreement with the Federal Deposit Insurance Corporation to assume the deposits and certain assets of The First National Bank ofFlorida, a full-service bank with eight locations in the Florida Panhandle. The Office of the Comptroller of the Currency declared The First National Bank ofFloridainMilton, Florida, closed today and appointed the FDIC as receiver for The First National Bank ofFlorida. CharterBank entered into a purchase and assumption agreement whereby CharterBank assumed all of the deposits and substantially all of the assets of The First National Bank ofFlorida. The purchase and assumption transaction includes loss share coverage of 80% of losses incurred on the disposition of loans and foreclosed real estate.

All of the branches of The First National Bank ofFloridawill reopen as branches of CharterBank at their next regularly scheduled hours of operation on eitherSaturday, September 10, 2011orMonday, September 12, 2011. All depositors of The First National Bank ofFloridawill automatically become depositors of CharterBank, and deposits will continue to be insured by the FDIC. This transaction marks CharterBank's third FDIC assisted acquisition after which CharterBank will now operate locations inGeorgia,Alabama, andFlorida Panhandle.

Robert L. Johnson, Charter Financial CEO, commented, "We welcome the customers and employees of The First National Bank ofFloridato the CharterBank family. Customers can be confident that their deposits are safe and readily available. CharterBank is firmly rooted in small town banking and has a rich history of serving and bringing out the best from its communities since its founding in 1954."

As a result of The First National Bank ofFloridaacquisition, CharterBank will assume approximately$253.0 millionin total deposits and$189.5 millionin total loans.

Stifel, Nicolaus & Company, Incorporated served as financial advisor to Charter Financial Corporation in the transaction.