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Cheviot Financial Corp. Reports Fourth Quarter and Annual Earnings

CINCINNATI, Ohio – January 29, 2009 – Cheviot Financial Corp. (NASDAQ: CHEV), the parent company of Cheviot Savings Bank, today reported net earnings in the fourth fiscal quarter of 2008 of $422,000, or $0.05 per share compared with net earnings of $173,000, or $0.02 per share for the fourth fiscal quarter of 2007.  For the year ended December 31, 2008 net earnings totaled $1.4 million, or $0.16 per share compared with net earnings of $926,000, or $0.10 per share for the comparable period in 2007.  The increase in net income during the three and twelve months ended December 31, 2008 as compared to the periods ended December 31, 2007 reflect the positive impact of a steeper yield curve on Cheviot Savings Bank net interest income, partially offset by higher provisions for losses on loans reflecting the general weakening of the local economy and the higher dollar amount of loans in the Bank’s portfolio in 2008 as compared to 2007.  

 

The earnings per share for the three and twelve months ended December 31, 2008 were based on weighted average shares outstanding of 8,661,475 and 8,684,509 as compared with weighted average shares outstanding of 8,734,930 and 8,904,177 for the comparable 2007 periods.

 

The $249,000 increase in 2008 fourth quarter net earnings is due to a $372,000 increase in net interest income after the provision for losses on loans, an increase in other income of $8,000, which were partially offset by an increase in general, administrative and other expenses of $77,000 and an increase in the provision for federal income taxes of $54,000. 

 

For the year ended December 31, 2008, the Company’s increase in earnings generally reflected an increase of $1.3 million in net interest income, which was partially offset by an increase in the provision for losses on loans of $552,000, a decrease of $42,000 in other income, an increase of $73,000 in general, administrative and other expenses and an increase in the provision for federal income taxes of $164,000.  The increase in the provision for losses on loans is a reflection of economic factors and the allocation of approximately $458,000 in reserves for real estate acquired through foreclosure during the year ended December 31, 2008.  At December 31, 2008, the allowance for losses on loans was 38.4% of nonperforming loans and 0.26% of total loans.

 

In January 2008, the Company announced a stock repurchase plan which provided for the repurchase of 5% or 447,584 shares of our common stock.  As of December 31, 2008, the Company had purchased 79,170 shares pursuant to the plan at an average price of $9.16.

 

At December 31, 2008, Cheviot Financial Corp. had consolidated total assets of $332.0 million, total liabilities of $263.8 million, including deposits of $216.0 million. Shareholders’ equity totaled $68.2 million, or 20.6% of total assets.  At December 31, 2008, Cheviot Savings Bank exceeded all regulatory capital requirements necessary to be considered “well-capitalized”.

 

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

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"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.

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