RICHMOND - Wheat, First Securities Inc. has given Charter Federal Savings Bank stock a "long-term buy" rating.
"We believe with a skilled management team and solid balance sheet, Charter Federal is poised for future growth," said a Wheat research report. "In our opinion, the strong first-quarter results are indicative of the potential Charter Federal possesses."
Charter wrote off $41 million in goodwill and had a deficit net worth of about $12 million as of March 1. The company, however, received permission from the Office of Thrift Supervision to proceed with a rights offering. It raised nearly $44 million in August.
Charter, whose fiscal 1993 ended June 30, earned $2.3 in the first quarter of fiscal 1994, versus $2.8 million a year earlier. Charter posted a return of 1.32% on assets and 26.41% on equity.
