In The News
Charter Bank Reports Record Assets, Strong 2007 Earnings
Bank's Assets Top $1.4 Billion as Earnings Near $17 million
Albuquerque, NM -- Charter Bank announced that its assets reached a record $1.40 billion as of Dec. 31, 2007, as the bank earned nearly $17 million in net income. While income was down 11.8 percent from record earnings of $19.28 million in 2006, Charter Companies CEO Glenn Wertheim said the bank was very satisfied with its 2007 performance.
“Charter is a real estate bank and while 2006 was a boom year, 2007 was a more challenging year in which we saw many of our major competitors lose money and, in some cases, contract their business,” Wertheim said. “We were able to not only remain very profitable, but to expand.”
Earnings were somewhat impacted by increased expenses related to Charter’s expansion, including a new branch in Rio Rancho and an increased marketing budget. Net interest income was up 1 percent, from $31.6 million in 2006, to $31.9 million in 2007.
Wertheim said the continuing growth of Rio Rancho made it important for Charter to increase its presence in that market, where it is a major mortgage and construction lender. The bank increased its advertising in part to support its new high-interest TurboChecking account, which it unveiled mid-year.
Wertheim said that Charter was unaffected by charge-offs in its mortgage loan portfolio in 2007 and said Charter has actually seen a small decrease in mortgage delinquencies over the past year.
“As we begin 2008, we’re seeing a big increase in mortgage applications and the quality of our loan portfolio continues to hold up,” Wertheim said. “We think we are well positioned to not only take advantage of an increase in new mortgages and refinancings, but we also believe we’ve taken aggressive steps to ensure that we are prepared for any increase in mortgage defaults, should they occur.”
About Charter
Locally owned and operated, Charter provides a diverse range of financial services, including retail banking, residential and commercial real estate lending and insurance.
Founded in 1976, Charter is the fourth largest banking institution based in New Mexico and the state’s leading home lender, with assets of more than $1.4 billion and branches in Santa Fe, Rio Rancho and Albuquerque.
Charter Bank 2007 Financial Highlights (000s)
Charter Bank Financial Highlights (000s) |
|
|
|
2006 |
2007 |
Total Assets |
$1,262,623 |
$1,405,353 |
Total Interest Income |
$75,081 |
$84,666 |
Net Income |
$19,276 |
$16,999 |
Total Deposits |
$637,965 |
$669,804 |
Total Mortgage Loans |
$839,593 |
$995,183 |
Mortgage Loans Serviced |
$3,439,872 |
$3,774,583 |
