CHEV Cheviot Financial Corp

CINCINNATI, Oct. 20 /PRNewswire-FirstCall/ -- Cheviot Financial Corp. (NASDAQ:CHEV), the parent company of Cheviot Savings Bank, today reported net earnings in the third fiscal quarter of 2006 of $437,000, or $0.05 cents per share compared with net earnings of $560,000, or $0.06 cents per share for the third fiscal quarter of 2005. For the nine months ended September 30, 2006 net earnings totaled $1.3 million, or $0.14 per share compared with net earnings of $1.6 million, or $0.17 per share for the comparable nine month period in 2005. The $123,000 decline in 2006 third quarter net earnings is due to a $179,000 decrease in net interest income and an increase in general, administrative and other expenses of $116,000, which were partially offset by a $64,000 increase in other income and a decrease in the provision for federal income taxes of $78,000. For the third quarter ended September 30, 2006, management concluded that the allowance for loan loss was adequate in relation to the loan portfolio, and therefore did not record a provision for losses on loans. Third quarter earnings were heavily influenced by the first full quarter of operations for the Company's fifth branch office in Delhi. The growth rate of the new office has greatly exceeded management expectations and has contributed to the Company's overall 15.3% deposit growth in 2006. For the first nine months of 2006, the Company's decline in earnings reflected a reduction of $413,000 in net interest income, as well as an increase of $253,000 in general, administrative and other expenses, which were partially offset by a $95,000 increase in other income and a decrease of $190,000 in the provision for federal income taxes. For the nine months ended September 30, 2006, management concluded that the allowance for loan loss was adequate in relation to the loan portfolio, and therefore did not record a provision for losses on loans. At September 30, 2006, Cheviot Financial Corp. had consolidated total assets of $312.3 million, total liabilities of $239.7 million, including deposits of $208.9 million, and shareholders' equity of $72.5 million, or 23.2% of total assets. Cheviot Savings Bank was established in 1911 and currently has five full- service offices in Hamilton County, Ohio, as well as one loan production office in West Chester, Ohio. Unaudited financial statements follow. "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. Cheviot Financial Corp. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands) (Unaudited) September 30, December 31, ASSETS 2006 2005 Cash and cash equivalents $5,568 $9,103 Investment securities 55,065 48,638 Loans receivable 238,669 222,711 Other assets 12,958 11,339 Total assets $312,260 $291,791 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits $208,946 $181,238 Advances from the FHLB 28,408 33,209 Other liabilities 2,369 2,534 Total liabilities 239,723 216,981 Shareholders' equity 72,537 74,810 Total liabilities and shareholders' equity $312,260 $291,791 Cheviot Financial Corp. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except share data) (Unaudited) Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 Total interest income $4,283 $3,682 $12,151 $10,605 Total interest expense 2,131 1,351 5,560 3,601 Net interest income 2,152 2,331 6,591 7,004 Provision for losses on loans - 30 - 62 Net interest income after provision for losses on loans 2,152 2,301 6,591 6,942 Other income 176 112 399 304 General, administrative and other expense 1,690 1,574 5,072 4,819 Earnings before federal income taxes 638 839 1,918 2,427 Federal income taxes 201 279 614 804 NET EARNINGS $437 $560 $1,304 $1,623 Earnings per share - basic and diluted $0.05 $0.06 $0.14 $0.17 DATASOURCE: Cheviot Financial Corp. CONTACT: Thomas J. Linneman of Cheviot Financial Corp., +1-513-661-0457 Web site: http://www.cheviotsavings.com/

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