Cheviot Financial Corp. Reports First-Quarter Earnings

Cheviot Financial Corp. Reports First-Quarter Earnings

CINCINNATI, May 2, 2014 (GLOBE NEWSWIRE) -- Cheviot Financial Corp.
(Nasdaq:CHEV), the parent company of Cheviot Savings Bank, today reported net
earnings for the first fiscal quarter of 2014 of $815,000, or $0.12 cents per
share based upon 6,653,983 shares outstanding at March 31, 2014. Net earnings
for the three months ended March 31, 2013 totaled $791,000 or $0.11 cents per
share based upon 7,300,012 shares outstanding at March 31, 2013.

For the three months ended March 31, 2014:

Net earnings for the three months ended March 31, 2014 totaled $815,000, a
$24,000 increase from the $791,000 earnings reported in the March 2013 period.
The increase in net earnings reflects a decrease in general, administrative
and other expenses of $271,000 and an increase of $107,000 in other income,
which was partially offset by a decrease in net interest income of $198,000,
an increase in the provision for losses on loans of $145,000, and an increase
of $11,000 in the provision for federal income taxes.

Total interest income decreased $439,000, or 8.6%, to $4.6 million for the
three months ended March 31, 2014, from the comparable quarter in 2013.
Interest income on loans decreased $331,000, or 8.1%, to $3.7 million during
the 2014 quarter from $4.1 million for the 2013 quarter. This decrease was due
primarily to a $3.8 million, or 1.1%, decrease in the average balance of loans
outstanding and a 34 basis point decrease in the average yield on loans to
4.50% for the 2014 quarter from 4.84% for the three months ended March 31,
2013. Interest income on mortgage-backed securities increased $18,000, or
43.9%, to $59,000 for the three months ended March 31, 2014, from $41,000 for
the comparable 2013 quarter, due primarily to a $2.9 million, or 30.3%
increase in the average balance of securities outstanding and by an 18 basis
point increase in the average yield. Interest income on investment securities
decreased $118,000, or 13.6%, to $751,000 for the three months ended March 31,
2014, compared to $869,000 for the same quarter in 2013, due primarily to a
decrease of $33.6 million, or 18.2% in the average balance of investment
securities outstanding, partially offset by an 10 basis point increase in the
average yield to 1.98% in the 2014 quarter. The decrease in investment
securities reflects the call of $15.0 million in investment securities at par,
as well as the sale of $1.6 million in corporate securities. Interest income
on other interest-earning deposits decreased $8,000, or 8.2% to $89,000 for
the three months ended March 31, 2014.

Interest expense decreased $241,000, or 20.8% to $919,000 for the three months
ended March 31, 2014, from $1.2 million for the same quarter in 2013. Interest
expense on deposits decreased by $197,000, or 20.4%, to $770,000, from
$967,000, due primarily to a 13 basis point decrease in the average cost of
deposits to 0.67% and a $22.5 million, or 4.6% decrease in the average balance
of deposits outstanding, primarily time deposits.The decrease in the average
cost of deposits is due to the overall changes in the deposit composition. Our
core deposits increased during the comparative period while we had a decrease
in our time deposits, as well as, lower market rates during the 2014 period as
compared with the 2013 period.Interest expense on borrowings decreased by
$44,000, or 22.8%, due primarily to a $4.9 million decrease in the average
balance outstanding, and due to a 9 basis point decrease in the average cost
of borrowings.

As a result of the foregoing changes in interest income and interest expense,
net interest income decreased by $198,000, or 5.0%, to $3.7 million for the
three months ended March 31, 2014, as compared to the same quarter in
2013.The average interest rate spread increased to 2.93% for the three months
ended March 31, 2014 from 2.86% for the three months ended March 31, 2013.The
net interest margin increased to 2.96% for the three months ended March 31,
2014 from 2.91% for the three months ended March 31, 2013.

For the three months ended March 31, 2014, the company recorded a provision
for losses on loans of $200,000, as compared to $55,000 for the three months
ended March 31, 2013.At March 31, 2014 non-performing loans as a percent of
net loans decreased to 1.67% from 2.20% at December 31, 2013.This decrease is
a result of the overall decrease in non-performing loans of $1.8 million from
period to period.

Other income increased $107,000, or 11.3%, to $1.1 million for the three
months ended March 31, 2014, compared to the same quarter in 2013.The
increase is due primarily to an increase in the gain on sale of investment
securities of $440,000, which was partially offset by a decrease in the gain
on sale of loans of $171,000.

General, administrative and other expense decreased $271,000, or 7.4%, to $3.4
million for of the three months ended March 31, 2014.This decrease is
primarily a result of a decrease in employee compensation and benefits of
$209,000 and a decrease of $75,000 in property, payroll and other taxes, which
was partially offset by an increase of $95,000 in real estate owned
impairment.

The provision for federal income taxes increased $11,000, or 3.3%, for the
three months ended March 31, 2014.

Financial Condition Changes at March 31, 2014 and December 31, 2013:

At March 31, 2014, total assets were $584.3 million, compared with $587.1
million at December 31, 2013.Total assets decreased $2.9 million, or 0.5%,
primarily due to the decrease in investment securities of $13.2 million and a
decrease in loans receivable of $4.6 million.The decrease in investment
securities was a result of the call of $15.0 million and the sale of corporate
securities of $1.6 million, which was offset by an increase in the fair market
value of securities designated as available for sale of $2.9 million. The
decrease in loans receivable resulted from the sale of loans in the secondary
market of $3.9 million and principal repayments of $15.5 million, which was
partially offset by loan originations of $15.2 million.

Total liabilities were $491.6 million at March 31, 2014, a decrease of $4.6
million, or 0.9% compared to $496.2 million at December 31, 2013.The decrease
in total liabilities is a result of a decrease of $2.8 million, or 0.6% in
total deposits which totaled $466.6 million at March 31, 2014, as compared to
$469.4 million at December31, 2013.Advances from the Federal Home Loan Bank
of Cincinnati decreased by $1.5 million, or 7.6%, to $17.8 million at March
31, 2014, from $19.3 million at December 31, 2013.The decrease is a result of
approximately $1.4 million in repayments during the three months ended March
31, 2014.

Shareholders' equity at March 31, 2014 was $92.7 million, an increase $1.8
million, or 1.9%, from December 31, 2013.The increase primarily resulted from
net income of $815,000 and a decrease in the unrealized loss on securities
designated as available for sale of $2.0 million, which was partially offset
by purchasing 40,900 shares at an average price of $10.40 per share through
the stock buyback program for a total cost of $427,000 and dividend payments
on common stock of $612,000.At March 31, 2014, tangible book value per share
was $12.05 as compared to $11.72 at December 31, 2013.Tangible book value per
share was affected by the increase in the fair market value of investment
securities designated as available for sale as other comprehensive loss
decreased during the 2014 period.At March 31, 2014, other comprehensive loss
was $5.2 million. Over time, the impact of the other comprehensive loss on
our tangible book value per share will decrease as investments are called or
mature at par, however, a sudden increase in interest rates can have an
adverse effect, as increases in rates may increase accumulated comprehensive
loss.

Cheviot Financial Corp.
SUMMARIZED
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AND
CONSOLIDATED STATEMENTS OF INCOME
                                                          
The following tables set forth consolidated selected financial and other data
of Cheviot Financial Corp. at the dates and for the periods presented.
                                                          
                                      For the Three Months Ended
                                      (Unaudited)          (Unaudited)
                                      3/31/2014            3/31/2013
Selected Operating Data:                                   
Total interest income                  $4,642               $5,081
Total interest expense                 919                  1,160
Net interest income                    3,723                3,921
Provision for losses on loans          200                  55
Net interest income afterprovision    3,523                3,866
for losses on loans
Total other income                     1,054                947
Total general, administrative          3,416                3,687
andother expense
Earnings before income taxes           1,161                1,126
Federal income taxes                   346                  335
Net earnings                           $815                 $791
                                                          
Earnings per share – basic and diluted $0.12                $0.11
                                                          
                                                          

                   (Unaudited)           (Unaudited) (Unaudited) (Unaudited)
                   3/31/2014   12/31/2013 9/30/2013   6/30/2013   3/31/2013
ASSETS:             (In thousands)
Cash and cash       $39,816     $22,112    $15,873     $28,656     $48,588
equivalents
Investment
securities          140,702     153,942    164,483     164,450     167,583
available for sale
Mortgage-backed
securities          9,130       9,361      9,792       5,278       5,576
available for sale
Mortgage-backed
securities held to  2,995       3,116      3,221       3,363       3,479
maturity – at cost
Loans receivable,   332,213     336,837    337,048     333,983     333,447
net ^(1)
Other assets        59,397      61,742     61,324      62,564      61,577
Total Assets        $584,253    $587,110   $591,741    $598,294    $620,250
                                                              
LIABILITIES:                                                   
Deposits            $466,635    $469,387   $471,493    $477,381    $486,207
Advances from the
Federal Home Loan   17,801      19,261     20,108      21,197      22,331
Bank
Other liabilities   7,122       7,535      7,008       6,012       6,526
Total Liabilities   491,558     496,183    498,609     504,590     515,064
Total Shareholders' 92,695      90,927     93,132      93,704      105,186
equity
Total Liabilities &
Shareholders'       $584,253    $587,110   $591,741    $598,294    $620,250
equity
                                                              
                                                              

                  For the Three Months Ended
                  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                  3/31/2014   12/31/2013  9/30/2013   6/30/2013   3/31/2013
                  (In thousands, except per share data)
                                                              
Total interest     $4,642      $4,689      $4,682      $4,860      $5,081
income
Total interest     919         1,003       1,065       1,103       1,160
expense
Net interest       3,723       3,686       3,617       3,757       3,921
income
Provision for      200         518         585         285         55
losses on loans
                                                              
Net interest
income after       3,523       3,168       3,032       3,472       3,866
provision for
losses on loans
Total other income 1,054       701         511         542         947
                                                              
Total general,
administrative and 3,416       3,425       3,578       3,696       3,687
other expense
Earnings (loss)
before income      1,161       444         (35)        318         1,126
taxes
Federal income     346         89          (56)        53          335
taxes (benefit)
Net earnings       $815        $355        $21         $265        $791
                                                              
Earnings per share
– basic and        $0.12       $0.06       $0.00       $0.04       $0.11
diluted

^(1) Includes loans held for sale, net of allowance for loan losses and
deferred loan costs.
                                                              
                                                              

Cheviot Financial Corp.
SELECTED FINANCIAL AND OTHER DATA
                                                                    
                        For the Three Months Ended
                        (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                        3/31/2014   12/31/2013  9/30/2013   6/30/2013   3/31/2013
                                                                    
Selected Financial
Ratios and Other                                                     
Data:^(1)
Performance Ratios:                                                  
Return on average        0.56%       0.24%       0.01%       0.17%       0.51%
assets
Return on average        3.56        1.52        0.09        1.02        2.93
equity
Average equity to        15.79       15.87       15.81       16.87       17.30
average assets
Net interest margin ^(2) 2.96        2.86        2.79        2.86        2.91
Interest rate spread     2.93        2.82        2.75        2.82        2.86
^(2)
Average interest-earning
assets to                104.43      105.33      104.75      104.43      105.84
averageinterest-bearing
liabilities
Total general,
administrative and other 2.35        2.32        2.40        2.40        2.36
expensesto average
total assets
Efficiency ratio ^(3)    71.52       78.07       86.68       85.97       75.74
                                                                    
Other Financial Ratios:                                              
Basic earnings per       $0.12       $0.06       $0.00       $0.04       $0.11
share
Diluted earnings per     $0.12       $0.06       $0.00       $0.04       $0.11
share
Tangible book value per  $12.05      $11.72      $12.02      $12.11      $12.79
common share
Shares outstanding      6,793,903   6,834,803   6,836,903   6,836,903   7,363,326
Weighted average shares 6,653,983   6,628,306   6,628,648   6,905,946   7,300,012
Weighted average diluted 6,658,492   6,633,549   6,635,467   6,913,638   7,306,700
shares
                                                                    
Asset Quality Ratios:                                                
Nonperforming loans as a
percent of net loans     1.67%       2.20%       2.76%       2.88%       3.59%
^(4)
Nonperforming assets as
a percent of total       1.46        1.82        2.29        2.43        2.67
assets ^(4)
Allowance for loan
losses as a percent of   0.52        0.50        0.47        0.46        0.48
net loans
Allowance for loan
losses as a percent of   20.25       15.88       11.61       10.52       9.71
nonperforming assets
^(4)
Allowance for loan
losses as a percent of   0.59        0.58        0.56        0.55        0.59
net originated loans
^(5)
Allowance for loan
losses as a percent      0.53        0.53        0.44        0.43        0.45
ofnet purchased loans
^(5)
Allowance for loan
losses as a percent
oforiginated            32.09       25.38       17.79       15.21       14.23
non-performing assets
^(5)
Allowance for loan
losses as a percent
ofpurchased             11.50       9.64        10.04       9.58        9.85
non-performing assets
^(6).
Net charge-offs to       0.05        0.38        0.11        0.11        0.18
average loans
                                                                    
Regulatory Capital                                                   
Ratios:
Tangible capital        13.59%      13.46%      13.47%      13.31%      12.77%
Core capital            13.59       13.46       13.47       13.31       12.77
Risk-based capital      25.70       25.26       25.50       25.67       25.30
                                                                    
Number of:                                                           
Banking offices         12          12          12          12          12
                                                                    
(1) With the exception of end of period ratios, all ratios are based on average
monthly balances during the periods.
(2) Interest rate spread represents the difference between the weighted-average
yield on interest-earning assets and the weighted‑average rate on interest-bearing
liabilities.Net interest margin represents net interest income as a percentage of
average interest-earning assets.
(3) Efficiency ratio represents the ratio of general, administrative and other
expenses divided by the sum of net interest income and total other income.
(4) Nonperforming loans consist of non-accrual loans and accruing loans greater than
90 days delinquent, while nonperforming assets consist of non-performing loans and
real estate acquired through foreclosure.Includes non-performing assets acquired
from First Franklin Corporation.
(5) Ratios exclude the effects of loans and non-performing assets acquired from
First Franklin Corporation, as such purchased loans and assets are recorded at fair
value at the time of acquisition, and without the related allowance for loan losses
as reflected on the target entity's financial statements.
(6) Net purchased loans and non-performing assets includes one-to-four family
residential loans without a credit quality discount applied only.
                                                                    

Cheviot Savings Bank was established in 1911 and currently has twelve
full-service offices in Hamilton County, Ohio.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this release which are not historical facts are
forward-looking and involve risks and uncertainties. The company undertakes no
obligation to update any forward-looking statement.

CONTACT: Thomas J. Linneman
         513-661-0457
 
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