Cheviot Financial Corp (CHEV, Financial) filed Quarterly Report for the period ended 2009-06-30.
Cheviot Savings Bank completed its conversion to the mutual holding company form and its initial public offering of common stock on January 5 2004. In connection with the conversion Cheviot Savings Bank formed Cheviot Financial Corp. as a new holding company. Shares of Cheviot Financial Corp. are listed on Nasdaq under the trading symbol `CHEV`. Cheviot Financial Corp has a market cap of $65.1 million; its shares were traded at around $7.34 with a P/E ratio of 45.9 and P/S ratio of 3.5. The dividend yield of Cheviot Financial Corp stocks is 5.4%.
or 87.1%, to $18.7 million at June 30, 2009, from $10.0 million at December 31,
2008. The increase in cash and cash equivalents at June 30, 2008, was due to a
$8.1 million increase in interest-earning deposits and a $776,000 increase in
federal funds sold, which was partially offset by a $111,000 decrease in cash
and due from banks. Investment securities increased $12.4 million to $43.3
million at June 30, 2009. At June 30, 2009, $43.3 million of investment
securities were classified as available for sale. As of June 30, 2009, none of
the investment securities are considered impaired.
Interest income on mortgage-backed securities decreased $31,000, or 11.8%, to
$231,000 for the six months ended June 30, 2009, from $262,000 for the same
period in 2008, due primarily to a 153 basis point decrease in the average
yield, which was partially offset by a $1.8 million increase in the average
balance of securities outstanding period to period. Interest income on
investment securities decreased $398,000, or 37.8%, to $654,000 for the six
months ended June 30, 2009, compared to $1.1 million for the same period in
2008, due primarily to an 142 basis point decrease in the average yield to 4.16%
in the 2009 period, and a decrease of $6.2 million, or 16.6% in the average
balance of investment securities outstanding. Interest income on other
interest-earning deposits decreased $45,000, or 64.3% to $25,000 for the six
months ended June 30, 2009, as compared to the same period in 2008.
Interest expense decreased $931,000, or 20.7% to $3.6 million for the six months
ended June 30, 2009, from $4.5 million for the same period in 2008. Interest
expense on deposits decreased by $1.1 million, or 29.7%, to $2.6 million for the
six months ended June 30, 2009, from $3.7 million for the same period in 2008
due primarily to a 109 basis point decrease in the average costs of deposits to
2.39% during the 2009 period, which was partially offset by a $5.5 million, or
2.6%, increase in the average balances outstanding. Interest expense on
borrowings increased by $182,000, or 24.4%, due primarily to a $9.0 million, or
26.9%, increase in the average balance outstanding, which was partially offset
by a 9 basis point decrease in the average cost of borrowings. The decrease in
the average cost of deposits and borrowings reflects lower shorter term interest
rates in 2009 as compared to 2008, as actions by the Federal Reserve to reduce
shorter term interest rates resulted in a steepening of the yield curve and a
reduction of short term and medium term interest rates.
General, administrative and other expense increased $522,000, or 14.3%, to $4.2
million for the six months ended June 30, 2009, from $3.6 million for the
comparable period in 2008. This increase is a result of an increase of $188,000
in employee compensation and benefits, an increase of $25,000 in data processing
expense, an increase of $144,000 in FDIC expense and a $116,000 increase in
other operating expense. The increase in employee compensation and benefits is a
result of the increase in compensation expense for additional employees and an
increase in the health costs as a result of overall company growth. The increase
in data processing expense is a result of the conversion of the core computer
operating system in May 2009. The increase in FDIC expense is a result of the
special assessment from the Federal Deposit Insurance Corporation of
approximately $140,000. The increase in other operating expense is a result of
real estate taxes, maintenance and insurance expense on properties acquired
through foreclosure.
Interest income on mortgage-backed securities increased $3,000, or 2.4%, to
$126,000 for the three months ended June 30, 2009, from $123,000 for the
comparable 2008 quarter, due primarily to a $3.3 million increase in the average
balance of securities outstanding, which was partially offset by a 147 basis
point decrease in the average yield period to period. Interest income on
investment securities decreased $212,000, or 42.6%, to $286,000 for the three
months ended June 30, 2009, compared to $498,000 for the same quarter in 2008,
due primarily to a 266 basis point decrease in the average yield to 3.12% in the
2009 quarter, which was partially offset by an increase of $2.2 million, or 6.3%
in the average balance of investment securities outstanding. Interest income on
other interest-earning deposits decreased $23,000, or 60.5% to $15,000 for the
three months ended June 30, 2009.
Interest expense decreased $391,000, or 18.5% to $1.7 million for the three
months ended June 30, 2009, from $2.1 million for the same quarter in 2008.
Interest expense on deposits decreased by $477,000, or 27.4%, to $1.3 million,
from $1.7 million, due primarily to a 100 basis point decrease in the average
costs of deposits to 2.25% during the 2009 quarter due to the lower rate
repricings of certificates of deposit, as deposit rates were lower in 2009 as
compared to 2008. This was partially offset by a $9.9 million, or 4.6%, increase
in the average balance outstanding. Interest expense on borrowings increased by
$86,000, or 23.2%, due primarily to a $7.0 million, or 20.0%, increase in the
average balance outstanding and a 12 basis point increase in the average cost of
borrowings.
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Cheviot Savings Bank completed its conversion to the mutual holding company form and its initial public offering of common stock on January 5 2004. In connection with the conversion Cheviot Savings Bank formed Cheviot Financial Corp. as a new holding company. Shares of Cheviot Financial Corp. are listed on Nasdaq under the trading symbol `CHEV`. Cheviot Financial Corp has a market cap of $65.1 million; its shares were traded at around $7.34 with a P/E ratio of 45.9 and P/S ratio of 3.5. The dividend yield of Cheviot Financial Corp stocks is 5.4%.
Highlight of Business Operations:
Cash, federal funds sold and interest-earning deposits increased $8.7 million,or 87.1%, to $18.7 million at June 30, 2009, from $10.0 million at December 31,
2008. The increase in cash and cash equivalents at June 30, 2008, was due to a
$8.1 million increase in interest-earning deposits and a $776,000 increase in
federal funds sold, which was partially offset by a $111,000 decrease in cash
and due from banks. Investment securities increased $12.4 million to $43.3
million at June 30, 2009. At June 30, 2009, $43.3 million of investment
securities were classified as available for sale. As of June 30, 2009, none of
the investment securities are considered impaired.
Interest income on mortgage-backed securities decreased $31,000, or 11.8%, to
$231,000 for the six months ended June 30, 2009, from $262,000 for the same
period in 2008, due primarily to a 153 basis point decrease in the average
yield, which was partially offset by a $1.8 million increase in the average
balance of securities outstanding period to period. Interest income on
investment securities decreased $398,000, or 37.8%, to $654,000 for the six
months ended June 30, 2009, compared to $1.1 million for the same period in
2008, due primarily to an 142 basis point decrease in the average yield to 4.16%
in the 2009 period, and a decrease of $6.2 million, or 16.6% in the average
balance of investment securities outstanding. Interest income on other
interest-earning deposits decreased $45,000, or 64.3% to $25,000 for the six
months ended June 30, 2009, as compared to the same period in 2008.
Interest expense decreased $931,000, or 20.7% to $3.6 million for the six months
ended June 30, 2009, from $4.5 million for the same period in 2008. Interest
expense on deposits decreased by $1.1 million, or 29.7%, to $2.6 million for the
six months ended June 30, 2009, from $3.7 million for the same period in 2008
due primarily to a 109 basis point decrease in the average costs of deposits to
2.39% during the 2009 period, which was partially offset by a $5.5 million, or
2.6%, increase in the average balances outstanding. Interest expense on
borrowings increased by $182,000, or 24.4%, due primarily to a $9.0 million, or
26.9%, increase in the average balance outstanding, which was partially offset
by a 9 basis point decrease in the average cost of borrowings. The decrease in
the average cost of deposits and borrowings reflects lower shorter term interest
rates in 2009 as compared to 2008, as actions by the Federal Reserve to reduce
shorter term interest rates resulted in a steepening of the yield curve and a
reduction of short term and medium term interest rates.
General, administrative and other expense increased $522,000, or 14.3%, to $4.2
million for the six months ended June 30, 2009, from $3.6 million for the
comparable period in 2008. This increase is a result of an increase of $188,000
in employee compensation and benefits, an increase of $25,000 in data processing
expense, an increase of $144,000 in FDIC expense and a $116,000 increase in
other operating expense. The increase in employee compensation and benefits is a
result of the increase in compensation expense for additional employees and an
increase in the health costs as a result of overall company growth. The increase
in data processing expense is a result of the conversion of the core computer
operating system in May 2009. The increase in FDIC expense is a result of the
special assessment from the Federal Deposit Insurance Corporation of
approximately $140,000. The increase in other operating expense is a result of
real estate taxes, maintenance and insurance expense on properties acquired
through foreclosure.
Interest income on mortgage-backed securities increased $3,000, or 2.4%, to
$126,000 for the three months ended June 30, 2009, from $123,000 for the
comparable 2008 quarter, due primarily to a $3.3 million increase in the average
balance of securities outstanding, which was partially offset by a 147 basis
point decrease in the average yield period to period. Interest income on
investment securities decreased $212,000, or 42.6%, to $286,000 for the three
months ended June 30, 2009, compared to $498,000 for the same quarter in 2008,
due primarily to a 266 basis point decrease in the average yield to 3.12% in the
2009 quarter, which was partially offset by an increase of $2.2 million, or 6.3%
in the average balance of investment securities outstanding. Interest income on
other interest-earning deposits decreased $23,000, or 60.5% to $15,000 for the
three months ended June 30, 2009.
Interest expense decreased $391,000, or 18.5% to $1.7 million for the three
months ended June 30, 2009, from $2.1 million for the same quarter in 2008.
Interest expense on deposits decreased by $477,000, or 27.4%, to $1.3 million,
from $1.7 million, due primarily to a 100 basis point decrease in the average
costs of deposits to 2.25% during the 2009 quarter due to the lower rate
repricings of certificates of deposit, as deposit rates were lower in 2009 as
compared to 2008. This was partially offset by a $9.9 million, or 4.6%, increase
in the average balance outstanding. Interest expense on borrowings increased by
$86,000, or 23.2%, due primarily to a $7.0 million, or 20.0%, increase in the
average balance outstanding and a 12 basis point increase in the average cost of
borrowings.
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