Cheviot Financial Corp. Reports Third-Quarter and Nine Month Earnings
October 28 2011 - 11:03AM
Cheviot Financial Corp. (Nasdaq:CHEV), the parent company of
Cheviot Savings Bank, today reported net earnings in the third
fiscal quarter of 2011 of $969,000, or $0.11 cents per share an
increase of 42% from the $683,000, or $0.08 cents per share in net
earnings for the third fiscal quarter of 2010. For the nine months
ended September 30, 2011 net earnings totaled $2.4 million, or
$0.28 per share, compared with net earnings of $1.8 million, or
$0.20 per share for the comparable nine month period in 2010.
The earnings per share for both the three and nine months ended
September 30, 2011 were based on weighted average shares
outstanding of 8,757,782, as compared with weighted average shares
outstanding of 8,722,075 and 8,723,800 for the comparable 2010
periods.
On March 16, 2011, Cheviot Financial Corp. completed its
acquisition of First Franklin Corporation. As a result of the
acquisition, the Company increased total assets by approximately
$277.6 million. Interest income and interest expense for the
current three and nine month periods includes the impact of the
First Franklin acquisition since March 16, 2011.
The $286,000 increase in 2011 third quarter net earnings is due
primarily to a $1.8 million increase in net interest income and an
increase of $229,000 in other income, which was partially offset by
a $50,000 increase in the provision for losses on loans, an
increase of $1.6 million in general administrative and other
expenses and an increase in the provision for federal income taxes
of $154,000, described below.
For the first nine months of 2011, the Company's increase in
earnings generally reflected an increase of $3.7 million in net
interest income, an increase of $1.0 million in other income and a
decrease of $178,000 in the provision for federal income taxes,
which were partially offset by an increase of $4.1 million in
general, administrative and other expenses and an increase of
$150,000 in the provision for losses on loans. The increase in
general, administrative and other expenses during the comparative
period is a result of legal and professional expenses and
approximately two quarters of additional operating costs incurred
as a result of the First Franklin acquisition. For the nine months
ended September 30, 2011, the Company recorded a provision for
losses on loans totaling $400,000 after giving consideration to the
allocation of approximately $363,000 for write downs in loans
transferred to real estate acquired through foreclosure. At
September 30, 2011, the allowance for losses on loans was 18.7% of
originated nonperforming assets and 0.7% of originated
loans. Under applicable accounting guidelines, loans acquired
in the acquisition were marked to fair value. Therefore, the
Company does not provide loan losses for the loans acquired in the
acquisition.
At September 30, 2011, Cheviot Financial Corp. had consolidated
total assets of $600.5 million, total liabilities of $528.4
million, including deposits of $480.4 million, and shareholders'
equity of $72.1 million, or 12.0% of total assets. At
September 30, 2011, the Savings Bank exceeded all capital adequacy
requirements with tangible, core and risk-based capital ratios of
10.0%, 10.0% and 18.3%, respectively.
Cheviot Savings Bank was established in 1911 and currently has
twelve full-service offices in Hamilton County, 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 |
2011 |
2010 |
|
|
|
Cash and cash equivalents |
$ 45,201 |
$ 18,149 |
Investment securities |
103,103 |
97,440 |
Loans receivable |
397,460 |
225,438 |
Goodwill |
10,309 |
-- |
Core deposit intangible, net |
1,118 |
-- |
Other assets |
43,325 |
17,042 |
|
|
|
Total assets |
$ 600,516 |
$ 358,069 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
Deposits |
$ 480,390 |
$ 257,852 |
Advances from the FHLB |
42,024 |
27,300 |
Other liabilities |
5,972 |
3,498 |
|
|
|
Total liabilities |
528,386 |
288,650 |
|
|
|
Shareholders' equity |
72,130 |
69,419 |
|
|
|
Total liabilities and shareholders'
equity |
$ 600,516 |
$ 358,069 |
Cheviot Financial
Corp. |
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS |
(In thousands, except share
data) |
(Unaudited) |
|
|
|
|
|
|
Three months
ended |
Nine months
ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
Total interest income |
$ 6,130 |
$ 3,841 |
$ 16,290 |
$ 11,842 |
Total interest expense |
1,583 |
1,130 |
4,415 |
3,633 |
|
|
|
|
|
Net interest income |
4,547 |
2,711 |
11,875 |
8,209 |
|
|
|
|
|
Provision for losses on loans |
200 |
150 |
400 |
250 |
|
|
|
|
|
Net interest income after
provision for losses on loans |
4,347 |
2,561 |
11,475 |
7,959 |
|
|
|
|
|
Other income |
702 |
473 |
1,889 |
842 |
General, administrative and other
expense |
3,636 |
2,061 |
10,206 |
6,125 |
|
|
|
|
|
Earnings before federal income
taxes |
1,413 |
973 |
3,158 |
2,676 |
|
|
|
|
|
Federal income taxes |
444 |
290 |
734 |
912 |
|
|
|
|
|
NET EARNINGS |
$ 969 |
$ 683 |
$ 2,424 |
$ 1,764 |
|
|
|
|
|
Earnings per share - basic and diluted |
$ 0.11 |
$ 0.08 |
$ 0.28 |
$ 0.20 |
CONTACT: Thomas J. Linneman
513-661-0457
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