10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended  March 31, 2015

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _______________

Commission File No. 001-35399

CHEVIOT FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Maryland	90-0789920
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

3723 Glenmore Avenue, Cincinnati, Ohio  45211

(Address of principal executive office)

Registrant’s telephone number, including area code: (513) 661-0457

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒                      No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one.)

Large accelerated filer ☐                  Accelerated filer   ☒                   Non-accelerated filer   ☐

Smaller reporting company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐                      No  ☒

As of May 7, 2015, the latest practicable date, 6,795,454 shares of the registrant’s common stock, $.01 par value, were issued and outstanding.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒                      No  ☐

Page 1 of 46

INDEX

			Page
PART I	-	FINANCIAL INFORMATION
		Consolidated Statements of Financial Condition	3
		Consolidated Statements of Earnings	4
		Consolidated Statements of Comprehensive Income	5
		Consolidated Statements of Cash Flows	6
		Notes to Consolidated Financial Statements	8
		Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
		Quantitative and Qualitative Disclosures about Market Risk	43
		Controls and Procedures	43
PART II	-	OTHER INFORMATION	44
SIGNATURES			46

2

Cheviot Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

March 31, 2015 and December 31, 2014

(In thousands, except share data)

	March 31,			December 31,
	2015			2014
	(Unaudited)
ASSETS
Cash and due from banks	$	9,882		$	22,757
Federal funds sold		16,570			14,941
Interest-earning deposits in other financial institutions		6,101			4,741
Cash and cash equivalents		32,553			42,439
Investment securities available for sale – at fair value		138,735			126,999
Mortgage-backed securities available for sale - at fair value		8,933			9,400
Loans receivable - net		336,387			335,763
Loans held for sale - at lower of cost or market		1,648			1,332
Real estate acquired through foreclosure - net		1,642			1,815
Office premises and equipment - at depreciated cost		11,327			11,428
Federal Home Loan Bank stock - at cost		8,651			8,651
Accrued interest receivable on loans		1,031			1,031
Accrued interest receivable on mortgage-backed securities		32			35
Accrued interest receivable on investments and interest-earning deposits		426			735
Goodwill		10,309			10,309
Core deposit intangible		357			391
Prepaid expenses and other assets		4,214			3,915
Bank-owned life insurance		16,070			15,960
Prepaid federal income taxes		13			12
Deferred federal income taxes		374			1,022
Total assets	$	572,702		$	571,237
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	455,523		$	451,784
Advances from the Federal Home Loan Bank		13,857			14,851
Advances by borrowers for taxes and insurance		1,661			2,651
Accrued interest payable		56			58
Accounts payable and other liabilities		4,718			5,711
Total liabilities		475,815			475,055
Shareholders’ equity
Preferred stock - authorized 5,000,000 shares, $.01 par value; none issued Common stock - authorized 30,000,000 shares, $.01 par value; 6,753,145 and 6,718,795 shares issued at March 31, 2015 and December 31, 2014		221			220
Additional paid-in capital		55,921			55,827
Shares acquired by stock benefit plans		(1,470	)		(1,470	)
Retained earnings - restricted		42,544			43,151
Accumulated comprehensive loss, unrealized losses on securities available for sale, net of related tax benefit		(329	)		(1,546	)
Total shareholders’ equity		96,887			96,182
Total liabilities and shareholders’ equity	$	572,702		$	571,237

See accompanying notes to consolidated financial statements.

3

Cheviot Financial Corp.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

For the three months ended March 31, 2015 and 2014

(In thousands, except per share data)

	2015			2014
Interest income
Loans	$	3,631		$	3,754
Mortgage-backed securities		40			59
Investment securities		688			751
Interest-earning deposits and other		93			89
Total interest income		4,452			4,653
Interest expense
Deposits		779			771
Borrowings		112			149
Total interest expense		891			920
Net interest income		3,561			3,733
Provision for losses on loans		143			200
Net interest income after provision for losses on loans		3,418			3,533
Other income
Rental		28			25
Gain (loss) on sale of real estate acquired through foreclosure		(9	)		25
Gain on sale of loans		205			67
Gain on sale of investment securities designated as available for sale		-			440
Earnings on bank-owned life insurance		110			116
Service fee income		345			370
Other operating		2			1
Total other income		681			1,044
General, administrative and other expense
Employee compensation and benefits		2,271			1,474
Occupancy and equipment		320			378
Property, payroll and other taxes		317			293
Data processing		200			160
Legal and professional		213			231
Advertising		81			75
FDIC expense		81			117
ATM processing expense		95			88
Real estate owned impairment		108			196
Core deposit intangible amortization		34			47
Other operating		356			357
Total general, administrative and other expense		4,076			3,416
Earnings before federal income taxes		23			1,161
Federal income taxes
Current		-			-
Deferred		22			346
Total federal income taxes		22			346
NET EARNINGS	$	1		$	815
EARNINGS PER SHARE
Basic	$	.00		$	.12
Diluted	$	.00		$	.12
Dividends declared per share	$	.09		$	.09

See accompanying notes to consolidated financial statements.

4

Cheviot Financial Corp.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

For the three months ended March 31, 2015 and 2014

 (In thousands)

	2015			2014
Net earnings for the period	$	1		$	815
Other comprehensive loss, net of related tax expense:
Unrealized holding gains on securities during the period, net of tax expense of $627 and $1,023 for the periods ended March 31, 2015 and 2014, respectively		1,217			1,985
Comprehensive income	$	1,218		$	2,800
Accumulated comprehensive loss	$	(329	)	$	(5,244	)

See accompanying notes to consolidated financial statements.

5

Cheviot Financial Corp.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the three months ended March 31, 2015 and 2014

 (In thousands)

	2015			2014
Cash flows from operating activities:
Net earnings for the period	$	1		$	815
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Amortization of premiums and discounts on investment and mortgage-backed securities, net		(3	)		(3	)
Depreciation		157			184
Amortization of deferred loan origination costs - net		49			14
Proceeds from sale of loans in the secondary market		9,348			3,886
Loans originated for sale in the secondary market		(9,569	)		(4,002	)
Gain on sale of loans		(205	)		(67	)
Gain on sale of investments designated as available for sale		-			(440	)
Amortization of expense related to stock benefit plans		15			4
Provision for losses on loans		143			200
Amortization of fair value adjustments		(93	)		(82	)
(Gain) loss on real estate acquired through foreclosure		9			(21	)
Impairment on real estate acquired through foreclosure		108			196
Net increase in cash surrender value of bank-owned life insurance		(110	)		(116	)
Increase (decrease) in cash, due to changes in:
Accrued interest receivable on loans		-			55
Accrued interest receivable on mortgage-backed securities		3			1
Accrued interest receivable on investments and interest-earning deposits		309			266
Prepaid expenses and other assets		(299	)		(98	)
Accrued interest payable		(2	)		(4	)
Accounts payable and other liabilities		(980	)		397
Federal income taxes
Current		1			346
Deferred		22			346
Net cash flows provided by (used in) operating activities		(1,096	)		1,877
Cash flows provided by (used in) investing activities:
Principal repayments on loans		14,152			15,539
Loan disbursements		(14,794	)		(11,215	)
Purchase of investment securities – available for sale		(24,996	)		-
Proceeds from maturity of investment securities – available for sale		15,000			15,000
Proceeds from the sale of corporate securities		-			1,603
Principal repayments on mortgage-backed securities – available for sale		574			319
Principal repayments on mortgage-backed securities – held to maturity		-			121
Proceeds from the sale of real estate acquired through foreclosure		81			405
Purchase of office premises and equipment		(56	)		(9	)
Net cash flows provided by (used in) investing activities		(10,039	)		21,763
Cash flows provided by (used in) financing activities:
Net increase (decrease) in deposits		3,739			(2,655	)
Repayments on Federal Home Loan Bank advances		(972	)		(1,439	)
Advances by borrowers for taxes and insurance		(990	)		(806	)
Stock option expense, net		35			4
Common stock issued		45			-
Common stock repurchased		-			(428	)
Dividends paid on common stock		(608	)		(612	)
Net cash flows provided by (used in) financing activities		1,249			(5,936	)
Net increase in cash and cash equivalents		(9,886	)		17,704
Cash and cash equivalents at beginning of period		42,439			22,112
Cash and cash equivalents at end of period	$	32,553		$	39,816

See accompanying notes to consolidated financial statements.

6

Cheviot Financial Corp.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)

For the three months ended March 31, 2015 and 2014

 (In thousands)

	2015		2014
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Federal income taxes	$	-	$	-
Interest on deposits and borrowings	$	893	$	923
Supplemental disclosure of non-cash investing activities:
Transfer from loans to real estate acquired through foreclosure	$	27	$	280
Recognition of mortgage servicing rights	$	69	$	26
Deferred gain on real estate acquired through foreclosure	$	-	$	4

See accompanying notes to consolidated financial statements.

7

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended March 31, 2015 and 2014

1.       Basis of Presentation

Cheviot Financial Corp. (“Cheviot Financial” or the “Corporation”) is a savings and loan holding company, the principal asset of which consists of its ownership of Cheviot Savings Bank (the “Savings Bank”).  The Savings Bank conducts a general banking business in southwestern Ohio which consists of attracting deposits and applying those funds primarily to the origination of real estate loans.  The Savings Bank’s profitability is significantly dependent on net interest income, which is the difference between interest income from interest-earning assets and the interest expense paid on interest-bearing liabilities.  Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances.

On January 18, 2012, we completed our second step reorganization and sale of common stock.  Prior to the completion of the second step conversion, Cheviot Financial was a federal corporation and mid-tier holding company.  Following the reorganization Cheviot Financial is the Maryland incorporated holding company of the Savings Bank.

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America.  Accordingly, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Cheviot Financial included in the Annual Report on Form 10-K for the year ended December 31, 2014.  However, in the opinion of management, all adjustments (consisting of only normal recurring accruals) which are necessary for a fair presentation of the consolidated financial statements have been included.  The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results which may be expected for the entire year.

Cheviot Financial evaluates subsequent events through the date of filing with the Securities and Exchange Commission.

2.       Principles of Consolidation

The accompanying consolidated financial statements as of and for the three months ended March 31, 2015 and 2014 include the accounts of the Corporation and its wholly-owned subsidiary, the Savings Bank.  All significant intercompany items have been eliminated.

3.       Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business.  Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures.  Our primary sources of funds are deposits, scheduled amortization and prepayments of loan principal and mortgage-backed securities, maturities and calls of securities and funds provided by our operations.  In addition, we may borrow from the Federal Home Loan Bank of Cincinnati.  At March 31, 2015 and December 31, 2014, we had $13.9 million and $14.9 million, respectively, in outstanding borrowings from the Federal Home Loan Bank of Cincinnati and had the capacity to increase such borrowings at those dates by approximately $156.3 million and $132.1 million, respectively.

8

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

3.       Liquidity and Capital Resources (continued)

Loan repayments and maturing securities are a relatively predictable source of funds.  However, deposit flows, calls of securities and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and local economic conditions and competition in the marketplace.  These factors reduce the predictability of these sources of funds.

Our primary investing activities are the origination of one- to four-family real estate loans, commercial real estate, construction and consumer loans, and the purchase of securities.  For the three months ended March 31, 2015, loan originations totaled $24.4 million, compared to $15.2 million for the three months ended March 31, 2014.

Total deposits increased $3.7 million during the three months ended March 31, 2015, total deposits decreased $2.7 million during the three months ended March 31, 2014, respectively.  Deposit flows are affected by the level of interest rates, the interest rates and products offered by competitors and other factors.

The following table sets forth information regarding the Corporation’s obligations and commitments to make future payments under contracts as of March 31, 2015.

			Payments due by period
	Less		More than		More than		More
	than		1-3		3-5		than
	1 year		years		years		5 years		Total
	(In thousands)
Contractual obligations:
Advances from the Federal Home Loan Bank	$	384	$	10,802	$	2,671	$	-	$	13,857
Certificates of deposit		108,277		65,114		33,519		-		206,910
Lease obligations		121		167		119		129		536
Amount of loan commitments and expiration per period:
Commitments to originate one- to four-family loans		2,505		-		-		-		2,505
Home equity lines of credit		26,390		-		-		-		26,390
Commercial lines of credit		1,123		-		-		-		1,123
Undisbursed loans in process		3,357		-		-		-		3,357
Total contractual obligations	$	142,157	$	76,083	$	36,309	$	129	$	254,678

We are committed to maintaining a strong liquidity position and we monitor our liquidity position on a daily basis.  We anticipate that we will have sufficient funds to meet our current funding commitments.  Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

9

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

3.       Liquidity and Capital Resources (continued)

The following sets forth our regulatory capital position, compared to requirements to be considered “well-capitalized” as of March 31, 2015 under new regulatory capital requirements, and prior requirements as of December 31, 2014.

	As of March 31, 2015 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	78,195		14.0	%
Common Equity Tier 1 Capital		6.50	%	$	78,195		23.9	%
Tier 1 Risk-Based Capital		8.00	%	$	78,195		23.9	%
Total Capital		10.00	%	$	80,518		24.6	%

	As of December 31, 2014 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	77,752		13.9	%
Tier 1 Risk-Based Capital		6.00	%	$	77,752		24.5	%
Total Capital		10.00	%	$	79,988		25.2	%

4.       Earnings Per Share

Basic earnings per share is computed based upon the weighted-average common shares outstanding during the period, less shares in the ESOP that are unallocated and not committed to be released plus shares in the ESOP that have been allocated.  Weighted-average common shares deemed outstanding gives effect to 158,950 and 168,300 unallocated shares held by the ESOP for the three months ended March 31, 2015 and 2014, respectively.

	For the three months ended
	March 31,
	2015		2014
Weighted-average common shares outstanding (basic)		6,573,652		6,653,983
Dilutive effect of assumed exercise of stock options		90,132		4,508
Weighted-average common shares outstanding (diluted)		6,663,784		6,658,491

10

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

5.       Stock Option Plan

The Corporation established a Stock Incentive Plan that provides for grants of up to 891,517 stock options.   During 2014, 400,000 stock options were granted in accordance with the 2013 Equity Incentive Plan subject to a five year vesting period in which the options granted will vest ratably annually beginning one year from the date of grant.  The shares in the plan and shares granted prior to the second step conversion have been adjusted to reflect the exchange ratio of 0.857 for the second step conversion that occurred in 2012.

On April 23, 2013, shareholders of the Corporation approved the 2013 Equity Incentive Plan.  The Plan provides for grants of up to 467,500 stock options.  As of March 31, 2015, 400,000 option awards have been granted under the 2013 Equity Incentive Plan with 72,000 option awards forfeited.

The Corporation follows FASB Accounting Standard Codification Topic 718 (ASC 718), “Compensation – Stock Compensation,” for its stock option plans, and accordingly, the Corporation recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options is reflected as a net increase in equity, for both any new grants, as well as for all unvested options outstanding, in both cases using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option.

The compensation cost recorded for unvested equity-based awards is based on their grant-date fair value. For the three months ended March 31, 2015, the Corporation recorded $35,000 compensation cost for equity-based awards that vested during the three months ended March 31, 2015.  The Corporation has $435,000 unrecognized compensation cost related to non-vested equity-based awards granted under its stock incentive plan as of March 31, 2015, which is expected to be recognized over a weighted-average vesting period of approximately 3.4 years.

11

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

5.     Stock Option Plan (continued)

A summary of the status of the Corporation’s stock option plan as of March 31, 2015, and changes during the period then ended is presented below:

	Three months ended					Year ended
	March 31, 2015					December 31, 2014
				Weighted-					Weighted-
				average					average
				exercise					exercise
	Shares			price		Shares			price
Outstanding at beginning of period		758,947		$	12.67		369,939		$	12.80
Granted		-			-		400,000			12.48
Exercised		(261,728	)		13.01		(10,992	)		9.94
Forfeited		(72,000	)		12.48		-			-
Outstanding at end of period		425,219		$	12.50		758,947		$	12.67
Options exercisable at period-end		91,081		$	12.79		363,791		$	12.86
Options expected to be exercisable at year-end
Fair value of options granted					NA					1.56

The following information applies to options outstanding at March 31, 2015:

Number outstanding		425,219
Exercise price		$8.30 - $15.90
Weighted-average exercise price		$12.79
Weighted-average remaining contractual life	4.7 years

The expected term of options is based on evaluations of historical and expected future employee exercise behavior.  The risk free interest rate is based upon the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date.  Volatility is based upon the historical volatility of the Corporation’s stock.

The fair value of each option granted is estimated on the date of grant using the modified Black-Scholes options-pricing model with the following weighted-average assumptions used for the 2014 grant, dividend yield of 2.88%; expected volatility of 14.25%; risk-free interest rates of 2.55%; and expected lives of 10 years. There were no grants during the three months ended March 31, 2015.

The effects of expensing stock options are reported in “cash provided by financing activities” in the Consolidated Statements of Cash Flows.

12

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

6.     Investment and Mortgage-backed Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at March 31, 2015 and December 31, 2014 are shown below.

			March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	137,614	$	130	$	787	$	136,957
Municipal obligations		1,691		87		-		1,778
	$	139,305	$	217	$	787	$	138,735
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	127,607	$	7	$	2,391	$	125,223
Municipal obligations		1,691		85		-		1,776
	$	129,298	$	92	$	2,391	$	126,999

The amortized cost of investment securities at March 31, 2015, by contractual term to maturity, are shown below.

	March 31,
	2015
	(In thousands)
One to five years	$	61,012
Five to ten years		43,333
More than ten years		34,960
	$	139,305

13

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

6.       Investment and Mortgage-backed Securities (continued)

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of mortgage-backed securities at March 31, 2015 and December 31, 2014 are shown below.

	March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	8,861	$	72	$	-	$	8,933
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	9,443	$	-	$	43	$	9,400

14

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

6.       Investment and Mortgage-backed Securities (continued)

The amortized cost of mortgage-backed securities, including those designated as available for sale, at March 31, 2015, by contractual terms to maturity, are shown below.  Expected maturities will differ from contractual maturities because borrowers may generally prepay obligations without prepayment penalties.

	March 31,
	2015
	(In thousands)
Due in one year or less	$	1,582
Due in more than one year through five years		4,435
Due in more than five years through ten years		2,365
Due in more than ten years		479
	$	8,861

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2015:

	Less than 12 months						12 months or longer								Total
Description of	Number of		Fair		Unrealized		Number of		Fair		Unrealized		Number of		Fair		Unrealized
securities	investments		value		losses		investments		value		losses		investments		value		losses
(Dollars in thousands)
U.S. Government agency securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787
Municipal obligations		-		-		-		-		-		-		-		-		-
Mortgage-backed securities		-		-		-		-		-		-		-		-		-
Total temporarily impaired securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787

15

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

6.     Investment and Mortgage-backed Securities (continued)

Management does not intend to sell any of the debt securities with an unrealized loss and does not believe that it is more likely than not that we will be required to sell a security in an unrealized loss position prior to a recovery in value.  The decline in the fair value is primarily due to an increase in market interest rates.  The fair values are expected to recover as securities approach maturity dates. The Corporation has evaluated these securities and has determined that the decline in their values is temporary.

7.     Income Taxes

The Corporation uses an asset and liability approach to accounting for income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are recognized if it is more likely than not that a future benefit will be realized. The Corporation accounts for income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, which prescribes the recognition and measurement criteria related to tax positions taken or expected to be taken in a tax return.

The Corporation’s principal temporary differences between financial income and taxable income result mainly from different methods of accounting for Federal Home Loan Bank stock dividends, the general loan loss allowance, deferred compensation, stock benefit plans, fair value adjustments arising from the First Franklin Corporation acquisition.  The Corporation has approximately $2.4 million of net operating losses to carryforward for the next 18 years.  These losses are subject to the Internal Revenue Code Section 382 limitations which allow approximately $1.1 million of the losses on an annual basis to offset current year taxable income.

The Corporation recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.  For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.  At adoption date, January 1, 2007, the Corporation applied the standard to all tax positions for which the statute of limitations remained open and was not required to record any liability for unrecognized tax benefits as that date.  There have been no material changes in unrecognized tax benefits since January 1, 2007.  The known tax attributes which can influence the Corporation’s effective tax rate is the utilization of net operating loss carryforwards subject to the limitations under Internal Revenue Code Section 382.

The Corporation is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Corporation is no longer subject to U.S. federal, state and local, or non U.S. income tax examinations by tax authorities for the years before 2011.

The Corporation will recognize, if applicable, interest accrued related to unrecognized tax liabilities in interest expense and penalties in operating expenses.

16

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

7.       Income Taxes (continued)

Federal income tax on earnings differs from that computed at the statutory corporate tax rate for the periods ended March 31, 2015 and 2014:

	2015			2014
	(Dollars in thousands)
Federal income taxes at statutory rate of 34%	$	9		$	395
Increase (decrease) in taxes resulting primarily from:
Stock compensation		54			3
Nontaxable interest income		(5	)		(11	)
Cash surrender value of life insurance		(37	)		(39	)
Other		1			(2	)
Federal income taxes per financial statements	$	22		$	346

8.     Fair Value of Financial Instruments

Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value, is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity or contracts that convey or impose on an entity the contractual right or obligation to either receive or deliver cash for another financial instrument. These fair value estimates are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price for which an asset could be sold or liability could be settled. However, given there is no active market or observable market transactions identical to many of the Corporation’s financial instruments, estimates of many of these fair values are based upon observable inputs which are subjective in nature, involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimated values.

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for financial instruments at March 31, 2015:

Cash and cash equivalents:  The carrying amounts presented in the consolidated statements of financial condition for cash and cash equivalents are deemed to approximate fair value.

Investment and mortgage-backed securities:  For investment and mortgage-backed securities, fair value is deemed to equal the quoted market price.

Loans receivable:  The loan portfolio was segregated into categories with similar characteristics, such as one-to four-family residential, multi-family residential and commercial real estate.  These loan categories were further delineated into fixed-rate and adjustable-rate loans.  The fair values for the resultant loan categories were computed via discounted cash flow analysis, using current interest rates offered for loans with similar terms to borrowers of similar credit quality.  For loans on deposit accounts, fair values were deemed to equal the historic carrying values.  The historical carrying amount of accrued interest on loans is deemed to approximate fair value.

Federal Home Loan Bank stock:  The carrying amount presented in the consolidated statements of financial condition is deemed to approximate fair value.

17

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

8.      Fair Value of Financial Instruments (continued)

Deposits:  The fair value of NOW accounts, passbook accounts, and money market demand deposits is deemed to approximate the amount payable on demand at March 31, 2015.  Fair values for fixed-rate certificates of deposit have been estimated using a discounted cash flow calculation using the interest rates currently offered for deposits of similar remaining maturities.

Advances from the Federal Home Loan Bank:  The fair value of these advances is estimated using the rates currently offered for similar advances of similar remaining maturities or, when available, quoted market prices.

Advances by Borrowers for Taxes and Insurance:  The carrying amount of advances by borrowers for taxes and insurance is deemed to approximate fair value.

Commitments to extend credit:  For fixed-rate loan commitments, the fair value estimate considers the difference between current levels of interest rates and committed rates.  At March 31, 2015, the fair value of the derivative loan commitments was not material.

9.      Disclosures about Fair Value of Assets and Liabilities

The estimated fair values of the Company’s financial instruments are as follows:

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	value		value		value		value
	(In thousands)
Financial assets
Cash and cash equivalents	$	32,553	$	32,553	$	42,439	$	42,439
Investment securities		138,735		138,735		126,999		126,999
Mortgage-backed securities		8,933		8,933		9,400		9,400
Loans receivable –
net and loans held for sale		338,035		356,059		337,095		358,500
Accrued interest receivable		1,489		1,489		1,801		1,801
Federal Home Loan Bank stock		8,651		8,651		8,651		8,651
	$	528,396	$	546,420	$	526,385	$	547,790
Financial liabilities
Deposits	$	455,523	$	455,059	$	451,784	$	451,165
Advances from the Federal Home Loan Bank		13,857		14,079		14,851		15,726
Accrued interest payable		56		56		58		58
Advances by borrowers for taxes and insurance		1,661		1,661		2,651		2,651
	$	471,097	$	470,855	$	469,344	$	469,600

18

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

9.     Disclosures about Fair Value of Assets and Liabilities (continued)

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists for fair value measurements based upon the inputs to the valuation of an asset or liability.

Level 1Quoted prices in active markets for identical assets or liabilities.

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair value methods and assumptions are set forth below for each type of financial instrument.

Securities available for sale:  Fair value on available for sale securities was based upon a market approach. Securities which are fixed income instruments that are not quoted on an exchange, but are traded in active markets, are valued using prices obtained from our custodian, which used third party data service providers and classified as level 2 assets.  Management compares the fair values to another third party report for reasonableness.  Available for sale securities includes U.S. agency securities, municipal bonds and mortgage-backed agency securities.

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
Securities available for sale at March 31, 2015:
U.S. Government agency securities	$	136,957		-	$	136,957		-
Municipal obligations		1,778		-		1,778		-
Mortgage-backed securities		8,933		-		8,933		-
Securities available for sale at December 31, 2014:
U.S. Government agency securities	$	125,223		-	$	125,223		-
Municipal obligations		1,776		-		1,776		-
Mortgage-backed securities		9,400		-		9,400		-

19

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

9.     Disclosures about Fair Value of Assets and Liabilities (continued)

Fair value measurements for certain assets and liabilities recognized in the accompanying statements of financial condition and measured at fair value on a nonrecurring basis:

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
March 31, 2015:
Real estate acquired through foreclosure	$	1,642		-	$	1,642		-
Loans held for sale		1,648		-		1,648		-
Impaired loans		14,935		-		14,935		-
December 31, 2014:
Real estate acquired through foreclosure	$	1,815		-	$	1,815		-
Loans held for sale		1,332		-		1,332		-
Impaired loans		15,382		-		15,382		-

The following table presents fair value measurements for the Company’s financial instruments which are not recognized at fair value in the accompanying statements of financial position on a recurring or nonrecurring basis.

			Quoted prices		Significant		Significant
			in active		other		other
			markets for		observable		unobservable
			identical assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2015:			(In thousands)
Financial assets:
Cash and cash equivalents	$	32,553	$	32,533	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		356,059		-		356,059		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,489		-		1,489		-
Financial liabilities:
Deposits		455,059		-		455,059		-
Advances from the Federal Home Loan Bank		14,079		-		14,079		-
Advances by borrowers for taxes and insurance		1,661		-		1,661		-
Accrued interest payable		56		-		56		-

20

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

9.     Disclosures about Fair Value of Assets and Liabilities (continued)

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
December 31, 2014:	(In thousands)
Financial assets:
Cash and cash equivalents	$	42,439	$	42,439	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		358,500		-		358,500		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,801		-		1,801		-
Financial liabilities:
Deposits		451,165		-		451,165		-
Advances from the Federal Home Loan Bank		15,726		-		15,726		-
Advances by borrowers for taxes and insurance		2,651		-		2,651		-
Accrued interest payable		58		-		58		-

21

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

10.     Intangible Assets

The Corporation recorded goodwill and other intangibles associated with the purchase of First Franklin and Franklin Savings in March 2011 totaling $11.6 million.  Goodwill is not amortized, but is periodically evaluated for impairment.  The Corporation did not recognize any impairment during the quarter ended March 31, 2015.  The carrying amount of the goodwill at March 31, 2015 was $10.3 million.

Identifiable intangibles are amortized to their estimated residual values over the expected useful lives.  Such lives are also periodically reassessed to determine if any amortization period adjustments are required.  During the quarter ended March 31, 2015, no such adjustments were recorded.  The identifiable intangible asset consists of a core deposit intangible which is being amortized on an accelerated basis over the useful life of such asset. The gross carrying amount of the core deposit intangible at March 31, 2015 was $1.3 million with $941,000 in accumulated amortization as of that date.

As of March 31, 2015, the current year and estimated future amortization expense for the core deposit intangible was:

	(In thousands)
2015	$	82
2016		110
2017		110
2018		55
Total	$	357

22

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing Receivables

The recorded investment in loans was as follows as of March 31, 2015:

	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
	(In thousands)
Purchased loans	$	62,177		$	3,264		$	-		$	24,253		$	132		$	89,826
Fair value discount - Credit impaired purchased loans		(965	)		(2	)		-			(308	)		-			(1,275	)
Fair value discount – Non-impaired purchased loans		(250	)		(24	)		-			(98	)		(11	)		(383	)
Purchased loans book value(3)		60,962			3,238			-			23,847			121			88,168
Originated loans (1)		168,267			16,515			8,733	(2)		60,278			807			254,600
Ending balance	$	229,229		$	19,753		$	8,733		$	84,125		$	928		$	342,768

(1) Includes loans held for sale

(2) Before consideration of undisbursed loans-in-process

(3) Loans purchased in acquisition of First Franklin

The carrying amount of purchased loans consisting of credit-impaired purchased loans and non-impaired purchased loans is shown in the following table as of March 31, 2015.

			Credit
	Non-impaired		Impaired
	Purchased Loans		Purchased Loans
	(In thousands)
One-to-four family residential (1)	$	57,058	$	3,904
Multi-family residential		2,879		359
Construction		-		-
Commercial		17,600		6,247
Consumer		120		1
Total	$	77,657	$	10,511

(1) Includes home equity lines of credit

23

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

Activity during 2015 for the accretable discount related to acquired credit impaired loans is as follows:

	(In thousands)
Accretable discount at December 31, 2014:	$	6,205
Reclass from nonaccretable difference to accretable discount		-
Less transferred to other real estate owned		-
Less accretion		(185	)
Accretable discount at March 31, 2015:	$	6,020

The recorded investment in loans was as follows as of March 31, 2015.  Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected on purchased impaired loans.  If we have probable decreases in cash flows expected to be collected (other than due to decreases in interest rate indices and changes in prepayment assumptions), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in cash flows expected to be collected, we first reverse any previously established allowance for loan losses and then increase interest income as a prospective yield adjustment over the remaining life of the loan, or pool of loans. Estimates of cash flows are impacted by changes in interest rate indices for variable rate loans and prepayment assumptions, both of which are treated as prospective yield adjustments included in interest income.  Cheviot Financial’s allowance at March 31, 2015 does not include any credit quality discount related to loans acquired from First Franklin, other than $653,000 for certain one-to-four family residential and nonresidential and commercial real estate loans.  Due to uncertainties in the evaluation of allowance for loan loss, it is at least reasonably possible that management’s estimate of the outcome will change within the next year.

24

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

The following summarizes activity in the allowance for credit losses:

	March 31, 2015
	One-to four
	Family			Multi-family
	Residential			Residential		Construction		Commercial		Consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	1,813		$	209	$	7	$	199	$	8		$	2,236
Provision		(1	)		25		3		117		(1	)		143
Charge-offs		(86	)		-		-		-		-			(86	)
Recoveries		27			-		-		2		1			30
Ending balance	$	1,753		$	234	$	10	$	318	$	8		$	2,323
Originated loans:
Individually evaluated for impairment	$	170		$	-	$	-	$	7	$	-		$	177
Purchased loans:
Individually evaluated for impairment	$	133		$	-	$	-	$	122	$	-		$	255
Originated Loans:
Collectively evaluated for impairment	$	1,093		$	234	$	10	$	148	$	8		$	1,493
Purchased loans:
Loans acquired with deteriorated credit quality	$	357		$	-	$	-	$	41	$	-		$	398
Loans receivable:
Ending balance	$	229,229		$	19,753	$	8,733	$	84,125	$	928		$	342,768
Ending balance:
Individually evaluated for impairment	$	3,774		$	96	$	-	$	554	$	-		$	4,424
Ending balance:
Collectively evaluated for impairment	$	221,551		$	19,298	$	8,733	$	77,324	$	927		$	327,833
Ending balance:
Loans acquired with deteriorated credit quality	$	3,904		$	359	$	-	$	6,247	$	1		$	10,511

25

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

	December 31, 2014
	One-to four
	Family				Multi-family
	Residential				Residential		Construction			Commercial			Consumer			Total
		(In thousands)
Allowance for loan losses:
Beginning balance		$	1,352		$	194	$	9		$	131		$	11		$	1,697
Provision			947			15		(2	)		64			-			1,024
Charge-offs			(520	)		-		-			(39	)		(3	)		(562	)
Recoveries			34			-		-			43			-			77
Ending balance		$	1,813		$	209	$	7		$	199		$	8		$	2,236
Originated loans:
Individually evaluated for impairment		$	238		$	-	$	-		$	7		$	-		$	245
Purchased loans:
Individually evaluated for impairment		$	135		$	-	$	-		$	-		$	-		$	135
Originated Loans:
Collectively evaluated for impairment		$	1,005		$	209	$	7		$	151		$	8		$	1,380
Purchased loans:
Loans acquired with deteriorated credit quality		$	435		$	-	$	-		$	41		$	-		$	476
Loans receivable:
Ending balance		$	231,626		$	20,501	$	8,327		$	81,357		$	921		$	342,732
Ending balance:
Individually evaluated for impairment		$	3,750		$	95	$	-		$	817		$	-		$	4,662
Ending balance:
Collectively evaluated for impairment		$	223,846		$	20,046	$	8,327		$	74,211		$	920		$	327,350
Ending balance:
Loans acquired with deteriorated credit quality		$	4,030		$	360	$	-		$	6,329		$	1		$	10,720

26

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

The Corporation assigns credit risk grades to evaluated loans using grading standards employed by regulatory agencies.  Loans judged to carry lower-risk attributes are assigned a “pass” grade, indicating a minimal likelihood of loss.  Loans judged to carry a higher-risk attributes are referred to as “classified loans” and are further disaggregated, with increasing expectations for loss recognition, as “special mention”, “substandard”, “doubtful”, and “loss”.  The Loan Classification of Assets committee assigns the credit risk grades to loans and reports to the board on a monthly basis the “classified asset” report.

The following table summarizes the credit risk profile by internally assigned grade:

	Originated Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	166,305	$	16,419	$	8,733	$	59,264	$	807	$	251,528
Special mention		-		-		-		-		-		-
Substandard		1,962		96		-		1,014		-		3,072
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,267	$	16,515	$	8,733	$	60,278	$	807	$	254,600
	Originated Loans at December 31, 2014
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	165,711	$	17,090	$	8,327	$	56,191	$	802	$	248,121
Special mention		-		-		-		-		-		-
Substandard		2,407		95		-		1,022		-		3,524
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,118	$	17,185	$	8,327	$	57,213	$	802	$	251,645
	Purchased Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	58,826	$	3,238	$	-	$	20,402	$	20	$	82,486
Special mention		-		-		-		-		-		-
Substandard		2,136		-		-		3,445		101		5,682
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	60,962	$	3,238	$	-	$	23,847	$	121	$	88,168

27

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

	Purchased Loans at December 31, 2014
	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
		(In thousands)
Grade:
Pass		$	60,918		$	3,316		$	-		$	20,441		$	18		$	84,693
Special mention			-			-			-			-			-			-
Substandard			2,590			-			-			3,703			101			6,394
Doubtful			-			-			-			-			-			-
Loss			-			-			-			-			-			-
Total		$	63,508		$	3,316		$	-		$	24,144		$	119		$	91,087

The following tables summarizes loans by delinquency, nonaccrual status and impaired loans:

	Age Analysis of Past Due Originated Loans Receivable  As of March 31, 2015
	30-89 Days Past Due		Greater than 90 Days		Total Past Due		Current & Accruing		Nonaccrual		Total Loan Receivables		Recorded Investment 90 Days and Accruing
	(In thousands)
Real Estate:
1-4 family Residential	$	1,533	$	875	$	2,408	$	164,880	$	1,854	$	168,267	$	-
Multi-family Residential		192		96		288		16,227		96		16,515		-
Construction		-		-		-		8,733		-		8,733		-
Commercial		-		144		144		60,116		162		60,278		-
Consumer		-		-		-		807		-		807		-
Total	$	1,725	$	1,115	$	2,840	$	250,763	$	2,112	$	254,600	$	-

	Age Analysis of Past Due Originated Loans Receivable As of December 31, 2014
													Recorded
													Investment
	30-89 Days		90 Days		Total Past			Current			Total Loan		90 Days and
	Past Due		or more		Due		& Accruing		Nonaccrual		Receivables		Accruing
		(In thousands)
Real Estate:
1-4 family Residential	$	999	$	1,317	$	2,316	$	165,088	$	2,031	$	168,118	$	-
Multi-family		-		95		95		17,090		95		17,185		-
Construction		-		-		-		8,327		-		8,327		-
Commercial		-		143		143		57,051		162		57,213		-
Consumer		-		-		-		802		-		802		-
Total	$	999	$	1,555	$	2,554	$	248,358	$	2,288	$	251,645	$	-

28

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

		Age Analysis of Past Due Purchased Loans Receivable As of March 31, 2015
																			Recorded
																			Investment
		30-89 Days		Greater than			Total Past			Current &						Total Loan			90 Days and
		Past Due		90 Days			Due			Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	2,089		$	1,721		$	3,810		$	56,246		$	2,627		$	60,962		$	-
Multi-family Residential			-			-			-			2,976			262			3,238			-
Construction			-			-			-			-			-			-			-
Commercial			131			619			750			23,324			392			23,847			-
Consumer			-			-			-			121			-			121			-
Total		$	2,220		$	2,340		$	4,560		$	82,667		$	3,281		$	88,168		$	-

		Age Analysis of Past Due Purchased Loans Receivable As of December 31, 2014
																			Recorded
																			Investment
	30-89 Days			90 Days			Total Past			Current						Total Loan			90 Days and
	Past Due			or More			Due			& Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	1,846		$	1,737		$	3,583		$	59,518		$	2,144		$	63,508		$	-
Multi-family			-			-			-			3,316			-			3,316			-
Construction			-			-			-			-			-			-			-
Commercial			187			619			806			23,302			655			24,144			-
Consumer			-			-			-			119			-			119			-
Total		$	2,033		$	2,356		$	4,389		$	86,255		$	2,799		$	91,087		$	-

29

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

	Impaired Loans
	As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a fair value discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,851	$	3,851	$	-	$	3,914	$	47
Multi-family		359		359		-		360		5
Construction		-		-		-		-		-
Commercial		6,247		6,247		-		6,288		93
Consumer		1		1		-		1		-
Total	$	10,458	$	10,458	$	-	$	10,563	$	145
Purchased loans with no fair value discount and no related allowance recorded:
Real Estate:
1-4 family	$	53	$	53	$	24	$	53	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	24	$	53	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,319	$	1,319	$	-	$	1,200	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		328		-
Consumer		-		-		-		-		-
Total	$	1,319	$	1,319	$	-	$	1,528	$	-
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	601	$	601	$	109	$	620	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		392		392		122		196		-
Consumer		-		-		-		-		-
Total	$	993	$	993	$	231	$	816	$	-

30

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

			Impaired Loans
			As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,357	$	1,357	$	-	$	1,361	$	-
Multi-family		96		96		-		96		-
Construction		-		-		-		-		-
Commercial		115		115		-		115		-
Consumer		-		-		-		-		-
Total	$	1,568	$	1,568	$	-	$	1,572	$	-
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	497	$	497	$	170	$	582	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		47		-
Consumer		-		-		-		-		-
Total	$	544	$	544	$	177	$	629	$	-
Total:
Real Estate:
1-4 family
Residential	$	7,678	$	7,678	$	303	$	7,730	$	47
Multi-family		455		455		-		456		5
Construction		-		-		-		-		-
Commercial		6,801		6,801		129		6,974		93
Consumer		1		1		-		1		-
Total	$	14,935	$	14,935	$	432	$	15,161	$	145

31

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a credit quality discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,977	$	3,977	$	-	$	3,578	$	61
Multi-family		360		360		-		708		-
Construction		-		-		-		-		-
Commercial		6,329		6,329		-		6,460		286
Consumer		1		1		-		1		-
Total	$	10,667	$	10,667	$	-	$	10,747	$	347
Purchased loans with a credit quality discount and an allowance recorded:
Real Estate:
1-4 family
Residential	$	53	$	53	$	19	$	16	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	19	$	16	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,080	$	1,080	$	-	$	1,863	$	23
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		655		655		-		328		10
Consumer		-		-		-		8		-
Total	$	1,735	$	1,735	$	-	$	2,199	$	33
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	639	$	639	$	113	$	263	$	12
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	639	$	639	$	113	$	263	$	12

32

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,365	$	1,365	$	-	$	1,786	$	30
Multi-family		95		95		-		95		-
Construction		-		-		-		-		-
Commercial		115		115		-		397		7
Consumer		-		-		-		-		-
Total	$	1,575	$	1,575	$	-	$	2,278	$	37
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	666	$	666	$	238	$	214	$	9
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		20		-
Consumer		-		-		-		-		-
Total	$	713	$	713	$	245	$	234	$	9
Total:
Real Estate:
1-4 family
Residential	$	7,780	$	7,780	$	370	$	7,720	$	135
Multi-family		455		455		-		803		-
Construction		-		-		-		-		-
Commercial		7,146		7,146		7		7,205		303
Consumer		1		1		-		9		-
Total	$	15,382	$	15,382	$	377	$	15,737	$	438

33

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

	Modifications
	As of March 31, 2015
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		-	$	-	$	-
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		-		-		-
Consumer		-		-		-
	Modifications
	For the three months ended March 31, 2015
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		-	$	-
Multi-family Residential		-		-
Construction		-		-
Commercial		-		-
Consumer		-		-

34

Cheviot Financial Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three months ended March 31, 2015 and 2014

11.     Financing receivables (continued)

	Modifications
	As of December 31, 2014
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
			(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		8	$	2,529	$	2,529
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		1		100		100
Consumer		-		-		-
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		5	$	724
Multi-family Residential		-		-
Construction		-		-
Commercial		1		99
Consumer		-		-

The modifications related to interest only payments ranging from a three to six month period.  Due to the short term cash flow deficiency, no related allowance was recorded as a result of the restructurings.  The collateral value was updated with recent appraisals which gave no indication of impairment.

35

Cheviot Financial Corp.

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF
	FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This report on Form 10-Q contains forward-looking statements, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. These forward-looking statements include, among other things:

● statements of our goals, intentions and expectations;

● statements regarding our business plans and prospects and growth and operating strategies;

● statements concerning trends in our provision for loan losses and charge-offs;

● statements regarding the trends in factors affecting our financial condition and results of operations, including asset quality of our loan and investment portfolios; and

● estimates of our risks and future costs and benefits.

These forward-looking statements are subject to significant risks, assumptions and uncertainties, including, among other things, the following important factors that could affect the actual outcome of future events: significantly increased competition among depository and other financial institutions; inflation and changes in the interest rate environment that reduce our interest margins or reduce the fair value of financial instruments; general economic conditions, either nationally or in our market areas, including employment prospects, real estate values and conditions that are worse than expected; decreased demand for our products and services and lower revenue and earnings because of a recession or other events; adverse changes and volatility in the securities markets or credit markets; legislative or regulatory changes that adversely affect our business, including changes in regulatory costs and capital requirements; our ability to enter new markets successfully and take advantage of growth opportunities, and the possible short-term dilutive effect of potential acquisitions or de novo branches, if any; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; changes in monetary and fiscal policy of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve and changes in the level of government support of housing finance; changes in policy and/or assessment rates of taxing authorities that adversely affect us; changes in our organization, or compensation and benefit plans and changes in expense trends (including, but not limited to trends affecting non-performing assets, charge-offs and provisions for loan losses); the impact of the governmental effort to restructure the U.S. financial and regulatory system, including the extensive reforms enacted in the Dodd-Frank Act and the continuing impact of our coming under the jurisdiction of new federal regulators; the inability of third-party providers to perform their obligations to us; and the ability of the U.S. Government to manage federal debt limits.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by any forward-looking statements. Any forward-looking statement made by us in this report speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

36

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Critical Accounting Policies

We consider accounting policies involving significant judgments and assumptions by management that have, or could have, a material impact on the carrying value of certain assets or on income to be critical accounting policies.  We consider the accounting method used for the allowance for loan losses to be a critical accounting policy.

The allowance for loan losses is the estimated amount considered necessary to cover inherent, but unconfirmed credit losses in the loan portfolio at the balance sheet date.  The allowance is established through the provision for losses on loans which is charged against income.  In determining the allowance for loan losses, management makes significant estimates and has identified this policy as one of the most critical for Cheviot Financial.

Management performs a quarterly evaluation of the allowance for loan losses.  Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal loan review and other relevant factors.  This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant change.

The analysis has two components, specific and general allocations.  Specific allocations are made for unconfirmed losses related to loans that are determined to be impaired. Impairment is measured by determining the present value of expected future cash flows or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses.  If the fair value of the loan is less than the loan’s carrying value, a charge-off is recorded for the difference.  The general allocation is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history.  We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. This  analysis  establishes  factors  that are  applied  to the loan  groups  to determine  the  amount  of  the  general  allowance.   Actual loan losses may be significantly more than the allowances we have established which could result in a material negative effect on our financial results.

The acquired assets and assumed liabilities of First Franklin were measured at estimated fair values, as required by FASB under Business Combinations.  Management made significant estimates and exercised significant judgment in accounting for the acquisition.  Management measured loan fair values based on loan file reviews (including borrower financial statements or tax returns), appraised collateral values, expected cash flows and historical loss factors of Franklin Savings.  Real estate acquired through foreclosure was primarily valued based on appraised collateral values.  The Corporation also recorded an identifiable intangible asset representing the core deposit base of Franklin Savings based on management’s evaluation of the cost of such deposits relative to alternative funding sources.  Management used significant estimates including the average lives of depository accounts, future interest rate levels, the cost of servicing various depository products and other significant estimates.  Management used market quotations to determine the fair value of investment securities and FHLB advances.

The acquired assets of First Franklin and Franklin Savings include loans receivable.  Loans receivable acquired with a deteriorated credit quality amounted to $25.0 million with a related fair value discount of $5.5 million.  The method of measuring carrying value of purchased loans differs from loans originated by the Corporation, and as such, the Corporation identifies purchased loans and purchased loans with a fair value discount.

37

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Critical Accounting Policies (continued)

We classify our investments in debt and equity securities as either held-to-maturity or available-for-sale. Securities classified as held-to maturity are recorded at cost or amortized cost. Available-for-sale securities are carried at fair value. We obtain our estimated fair values from a third party service. This service’s fair value calculations are based on quoted market prices when such prices are available. If quoted market prices are not available, estimates of fair value are computed using a variety of techniques, including extrapolation from the quoted prices of similar instruments or recent trades for thinly traded securities, fundamental analysis, or through obtaining purchase quotes. Due to the subjective nature of the valuation process, it is possible that the actual fair values of these investments could differ from the estimated amounts, thereby affecting our financial position, results of operations and cash flows. If the estimated value of investments is less than the cost or amortized cost, we evaluate whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. If such an event or change has occurred and we determine that the impairment is other-than-temporary, we expense the impairment of the investment in the period in which the event or change occurred. We also consider how long a security has been in a loss position in determining if it is other than temporarily impaired. Management also assesses the nature of the unrealized losses taking into consideration factors such as changes in risk -free interest rates, general credit spread widening, market supply and demand, creditworthiness of the issuer, and quality of the underlying collateral.

Discussion of Financial Condition Changes at March 31, 2015 and December 31, 2014

At March 31, 2015, total assets were $572.7 million, compared with $571.2 million at December 31, 2014.  Total assets increased $1.5 million, or 0.3%, primarily due to an increase in investment securities of $11.7 million and an increase in loans receivable of $940,000.  The increase in investment securities was a result of purchases of $25.0 million in securities and an increase in the fair market value of securities designated as available for sale of $1.7 million, which was partially offset by investment securities called at par of $15.0 million.  The increase in loans receivable resulted from loan originations of $24.4 million, which was partially offset by the sale of loans in the secondary market of $9.3 million and principal repayments of $14.2 million.

Cash, federal funds and interest-earning deposits decreased $9.9 million, or 23.3% to $32.6 million at March 31, 2015.  The decrease in cash and cash equivalents at March 31, 2015 was due to a $12.9 million decrease in cash and due from banks, which was partially offset by an increase in federal funds sold of $1.6 million and an increase of $1.4 million in interest-earning deposits.  The increase in investment securities was a result of purchases of $25.0 million in securities and an increase in the fair market value of securities designated as available for sale of $1.7 million, which was partially offset by investment securities called at par of $15.0 million.  At March 31, 2015, all investment securities were classified as available for sale. During this period of prolonged low interest rates the Bank is investing in shorter-term and more liquid investments in order to be prepared for investment opportunities when interest rates begin to in increase.

38

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Discussion of Financial Condition Changes at March 31, 2015 and December 31, 2014 (continued)

Mortgage-backed securities decreased $467,000, or 5.0%, to $8.9 million at March 31, 2015, from $9.4 million at December 31, 2014.  The decrease in mortgage-backed securities was due primarily to $574,000 in principal repayments.  At March 31, 2015, all mortgage-backed securities were classified as available for sale.

Loans receivable, including loans held for sale, increased $940,000, or 0.3%, to $338.0 million at March 31, 2015, from $337.1 million at December 31, 2014.  The increase in loans receivable resulted from loan originations of $24.4 million, which was partially offset by the sale of loans in the secondary market of $9.3 million and principal repayments of $14.2 million.

The allowance for loan losses totaled $2.3 million and $2.2 million at March 31, 2015 and December 31, 2014, respectively.  In determining the adequacy of the allowance for loan losses at any point in time, management and the board of directors apply a systematic process focusing on the risk of loss in the portfolio.  First, the loan portfolio is segregated by loan types to be evaluated collectively and loan types to be evaluated individually.  Delinquent multi-family and commercial loans are evaluated individually for potential impairments in their carrying value.  Second, the allowance for loan losses entails utilizing our historic loss experience by applying such loss percentage to the loan types to be collectively evaluated in the portfolio.  The $143,000 provision for losses on loans during the quarter ended March 31, 2015 reflected these factors.  The analysis of the allowance for loan losses requires an element of judgment and is subject to the possibility that the allowance may need to be increased, with a corresponding reduction in earnings. To the best of management’s knowledge, all known and inherent losses that are probable and that can be reasonably estimated have been recorded at March 31, 2015.

Originated non-performing and impaired loans totaled $2.1 million and $2.3 million at March 31, 2015 and December 31, 2014, respectively.  At March 31, 2015, originated non-performing and impaired loans were comprised of 29 loans secured by one- to four-family residential real estate totaling $1.9 million, one multi-family loan totaling $96,000 and three commercial and non-residential loans totaling $162,000. At March 31, 2015 and December 31, 2014 real estate acquired through foreclosure was $1.6 million and $1.8 million, respectively.  The allowance for loan losses represented 79.1% and 71.0% of Cheviot Financial’s originated non-performing and impaired loans at March 31, 2015 and December 31, 2014, respectively.  Although management believes that the Corporation’s allowance for loan losses conforms to generally accepted accounting principles based upon the available facts and circumstances, there can be no assurance that additions to the allowance will not be necessary in future periods, which would adversely affect our results of operations.

Deposits totaled $455.5 million at March 31, 2015, an increase of $3.7 million, or 0.8% from $451.8 million at December 31, 2014.  Advances from the Federal Home Loan Bank of Cincinnati decreased by $994,000, or 6.7%, to $13.9 million at March 31, 2015, from $14.9 million at December 31, 2014.  The decrease is a result of $972,000 in repayments during the three months ended March 31, 2015.

39

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Discussion of Financial Condition Changes at March 31, 2015 and December 31, 2014 (continued)

Shareholders’ equity at March 31, 2015 was $96.9 million, an increase of $705,000, or 0.7%, from December 31, 2014.  The increase primarily resulted from a decrease of $1.2 million in other comprehensive loss on securities designated as available for sale, which was partially offset by dividend payments on common stock of $608,000.  At March 31, 2015, tangible book value per share was $12.77 as compared to $12.72 at December 31, 2014.  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 2015 period.  At March 31, 2015 other comprehensive loss was $329,000.  Over time, the impact of the other comprehensive loss on our tangible book value per share would 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.

Liquidity and Capital Resources

We monitor our liquidity position on a daily basis using reports that summarize all deposit activity and loan commitments. A significant portion of our deposit base is comprised of time deposits.  At March 31, 2015, $108.3 million of time deposits are due to mature within one year.  The daily deposit activity report allows us to price our time deposits competitively.  Because of this and our deposit retention experience, we anticipate that a significant portion of maturing time deposits will be retained. At March 31, 2015, we had loan commitments of $6.0 million. Our loan commitments are funded or expire within 45 days from the date of the commitment.

Borrowings from the Federal Home Loan Bank of Cincinnati decreased $994,000 during the three months ended March 31, 2015.  At March 31, 2015, we had the ability to increase such borrowings by approximately $156.3 million. The additional borrowings can be used to offset any decrease in customer deposits or to fund loan commitments.  The Corporation’s other liabilities were primarily limited to $536,000 of lease obligations.

Comparison of Operating Results for the Three-Month Periods Ended March 31, 2015 and 2014

General

Net earnings for the three months ended March 31, 2015 totaled $1,000, an $814,000 decrease from the $815,000 earnings reported in the March 2014 period.  The decrease in net earnings reflects an increase in general, administrative and other expenses of $660,000, a decrease of $363,000 in other income and a decrease in net interest income of $172,000, which was partially offset by a decrease in the provision for losses on loans by $57,000, and by a decrease of $324,000 in the provision for federal income taxes.The reduction in net earnings for the quarter ended March 31, 2015 was due to the $765,000 payment we made to our former President and Chief Executive Officer as part of a previously announced settlement agreement executed in connection with his retirement.

Total interest income decreased $201,000, or 4.3%, to $4.5 million for the three months ended March 31, 2015, from the comparable quarter in 2014.   Interest income on loans decreased $123,000, or 3.3%, to $3.6 million during the 2015 quarter from $3.7 million for the 2014 quarter.  This decrease was due primarily to an 18 basis point decrease in the average yield on loans to 4.32% for the 2015 quarter from 4.50% for the three months ended March 31, 2014, which was partially offset by a $3.2 million, or 1.0%, increase in the average balance of loans outstanding.

40

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Comparison of Operating Results for the Three-Month Periods Ended March 31, 2015 and 2014 (continued)

Net Interest Income

Interest income on mortgage-backed securities decreased $19,000, or 32.2%, to $40,000 for the three months ended March 31, 2015, from $59,000 for the comparable 2014 quarter, due primarily to a $3.2 million, or 25.6% decrease in the average balance of securities outstanding and a 17 basis point decrease in the average yield.  Interest income on investment securities decreased $63,000, or 8.4%, to $688,000 for the three months ended March 31, 2015, compared to $751,000 for the same quarter in 2014, due primarily to a decrease of $20.0 million, or 13.2% in the average balance of investment securities outstanding, partially offset by an 11 basis point increase in the average yield to 2.09% in the 2015 quarter.  Interest income on other interest-earning deposits increased $4,000, or 4.5% to $93,000 for the three months ended March 31, 2015.

Interest expense decreased $29,000, or 3.2% to $891,000 for the three months ended March 31, 2015, from $920,000 for the same quarter in 2014.  Interest expense on borrowings decreased by $37,000, or 24.8%, due primarily to a $4.2 million decrease in the average balance outstanding, and a 9 basis point decrease in the average cost of borrowings.  Interest expense on deposits increased by $8,000, or 1.0%, to $779,000, from $771,000, due primarily to a 2 basis point increase in the average cost of deposits to 0.69%, which was partially offset by a $11.1 million, or 2.4% decrease in the average balance of deposits outstanding.

As a result of the foregoing changes in interest income and interest expense, net interest income decreased by $172,000, or 4.6%, to $3.6 million for the three months ended March 31, 2015, as compared to the same quarter in 2014.  The average interest rate spread decreased to 2.91% for the three months ended March 31, 2015 from 2.93% for the three months ended March 31, 2014.  The net interest margin decreased to 2.94% for the three months ended March 31, 2015 from 2.96% for the three months ended March 31, 2014.

Provision for Losses on Loans

As a result of an analysis of historical experience, the volume and type of lending conducted by the Savings Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to the Savings Bank’s market area, and other factors related to the collectability of the Savings Bank’s loan portfolio, management recorded a $143,000 provision for losses on loans for the three months ended March 31, 2015 and $200,000 for the three months ended March 31, 2014.  Non-performing originated loans were 0.8% and 0.9% of net originated loans at March 31, 2015 and December 31, 2014, respectively.  The 2015 provision for loan losses reflects the amount necessary to maintain an adequate allowance based on our historical loss experience and other external  factors.  These other external factors, economic conditions, and collateral value changes, have had a negative impact on non-owner-occupied loans in the portfolio.  There can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing loans in the future; however, management believes they have identified all known and inherent losses that are probable and that can be reasonably estimated within the loan portfolio, and that the allowance is adequate to absorb such losses.

41

Cheviot Financial Corp.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS (CONTINUED)

Comparison of Operating Results for the Three-Month Periods Ended March 31, 2015 and 2014 (continued)

Other Income

Other income decreased $363,000, or 34.8%, to $681,000 for the three months ended March 31, 2015, compared to the same quarter in 2014.  The decrease is due primarily to a decrease in the gain on sale of investment securities of $440,000, which was partially offset by an increase in the gain on sale of loans of $138,000.

General, Administrative and Other Expense

General, administrative and other expense increased $660,000, or 19.3%, to $4.1 million for of the three months ended March 31, 2015.  This increase is primarily a result of an increase in employee compensation and benefits of $797,000, an increase of $24,000 in property, payroll and other taxes and an increase in data processing of $40,000, which was partially offset by a decrease of $88,000 in real estate owned impairment, a decrease of $58,000 in occupancy and equipment expense and a decrease of $36,000 in FDIC expense.

As previously announced, on February 3, 2015 we entered into a severance agreement (the “Agreement”) with our former President and Chief Executive Officer in connection with his retirement.  The Agreement included non-competition, non-solicitation and confidentiality provisions and a full and final release of claims, in exchange for which we paid the former President and Chief Executive officer a total of $765,330 upon his retirement.  The execution of this Agreement and resulting payments caused the majority of the increase in employee compensation and benefits and related property, payroll and other taxes for the quarter ended March 31, 2015.

Federal Income Taxes

The provision for federal income taxes decreased $324,000, or 93.6%, for the three months ended March 31, 2015. Cheviot Financial has approximately $2.4 million in remaining operating loss carryforwards to offset future taxable income for 18 years.  These losses are subject to the Internal Revenue Code Section 382 net operating loss limitations of $1.1 million allowed on an annual basis.

42

Cheviot Financial Corp.

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the Corporation’s market risk since the Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2014.

ITEM 4  CONTROLS AND PROCEDURES

The Corporation’s Chief Executive Officer and Chief Financial Officer evaluated the disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report.  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Corporation’s disclosure controls and procedures are effective.

There were no changes in the Corporation’s internal controls or in other factors that could materially affect, or could reasonably be likely to materially affect, these controls subsequent to the date of their evaluation by the Corporation’s Chief Executive Officer and Chief Financial Officer.

43

Cheviot Financial Corp.

PART II

ITEM 1. Legal Proceedings

None.

ITEM 1A. Risk Factors

The Corporation was  a smaller reporting company and, therefore, was not required to provide Risk Factor disclosures in its most recent annual report of Form 10-K.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

On October 15, 2013, the Corporation amended the authorization of a stock repurchase plan.  Under this program the Corporation is authorized to repurchase 341,845 shares constituting 5% of the outstanding shares of common stock.  As of March 31, 2015, the Corporation had repurchased 127,000 shares at an average price of $11.37.

During the three months ended March 31, 2015, there were no stock repurchases in accordance with stock repurchase plan.

ITEM 3.                  Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable

ITEM 5. Other Information

None.

ITEM 6. Exhibits

31.1 Certification of Principal Executive Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of Principal Financial Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

44

Cheviot Financial Corp.

PART II (Continued)

101 The following financial statements of the Corporation at March 31, 2015 and December 31, 3014, and for the three months ended March 31, 2015 and 2014 formatted in XBRL: Consolidated Statements of Financial Condition; Consolidated Statements of Earnings; Consolidated Statements of Comprehensive Income; Consolidated Statements of Cash Flows; and Notes to Consolidated Financial Statements.

45

Cheviot Financial Corp.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	May 7, 2015	By:	/s/ Mark T. Reitzes
			Mark T. Reitzes
			President and Chief Executive Officer

Date:	May 7, 2015	By:	/s/ Scott T. Smith
			Scott T. Smith
			Chief Financial Officer

46

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13A-14

OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Mark T. Reitzes, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cheviot Financial Corp.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the  end of the period covered by this quarterly report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 7, 2015	/s/ Mark T. Reitzes
		Mark T. Reitzes
		President and Chief Executive Officer
		(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13A-14

OF THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Scott T. Smith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cheviot Financial Corp.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the  end of the period covered by this quarterly report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 7, 2015	/s/ Scott T. Smith
		Scott T. Smith
		Chief Financial Officer
		(principal financial officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cheviot Financial Corp. (the “Corporation”), on Form 10-Q for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date of this Certification (the “Report”), I, Mark T. Reitzes, President and Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Cheviot Financial Corporation and will be retained by Cheviot Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

		/s/ Mark T. Reitzes
		Mark T. Reitzes
		President and Chief Executive Officer
Date:	May 7, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cheviot Financial Corp. (the “Corporation”), on Form 10-Q for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date of this Certification (the “Report”), I, Scott T. Smith, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Cheviot Financial Corporation and will be retained by Cheviot Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

		/s/ Scott T. Smith
		Scott T. Smith
		Chief Financial Officer
Date:	May 7, 2015

XML

Investment and Mortgage-backed Securities - Amortized cost of mortgage-backed securities by contractual maturity (Details 3) (Mortgage-backed securities, USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Mortgage-backed securities
Schedule Of Marketable Securities [Line Items]
Due in one year or less	$ 1,582
Due in more than one year through five years	4,435
Due in more than five years through ten years	2,365
Due in more than ten years	479
Total	$ 8,861

XML

Financing Receivables - Credit risk profile by internally assigned grade (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Originated Loans Receivable
Financing Receivable, Recorded Investment [Line Items]
Originated loans	$ 254,600	$ 251,645
Originated Loans Receivable | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	168,267	168,118
Originated Loans Receivable | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	16,515	17,185
Originated Loans Receivable | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans	8,733	8,327
Originated Loans Receivable | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans	60,278	57,213
Originated Loans Receivable | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans	807	802
Originated Loans Receivable | Pass
Financing Receivable, Recorded Investment [Line Items]
Originated loans	251,528	248,121
Originated Loans Receivable | Pass | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	166,305	165,711
Originated Loans Receivable | Pass | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	16,419	17,090
Originated Loans Receivable | Pass | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans	8,733	8,327
Originated Loans Receivable | Pass | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans	59,264	56,191
Originated Loans Receivable | Pass | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans	807	802
Originated Loans Receivable | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Special Mention | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Special Mention | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Special Mention | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Special Mention | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Special Mention | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Substandard
Financing Receivable, Recorded Investment [Line Items]
Originated loans	3,072	3,524
Originated Loans Receivable | Substandard | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	1,962	2,407
Originated Loans Receivable | Substandard | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans	96	95
Originated Loans Receivable | Substandard | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Substandard | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans	1,014	1,022
Originated Loans Receivable | Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Doubtful | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss | Construction
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss | Commercial
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Originated Loans Receivable | Loss | Consumer
Financing Receivable, Recorded Investment [Line Items]
Originated loans
Purchased Loans Receivable
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	88,168	91,087
Purchased Loans Receivable | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	60,962	63,508
Purchased Loans Receivable | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	3,238	3,316
Purchased Loans Receivable | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	23,847	24,144
Purchased Loans Receivable | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	121	119
Purchased Loans Receivable | Pass
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	82,486	84,693
Purchased Loans Receivable | Pass | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	58,826	60,918
Purchased Loans Receivable | Pass | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	3,238	3,316
Purchased Loans Receivable | Pass | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Pass | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	20,402	20,441
Purchased Loans Receivable | Pass | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	20	18
Purchased Loans Receivable | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Special Mention | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Special Mention | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Special Mention | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Special Mention | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Special Mention | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Substandard
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	5,682	6,394
Purchased Loans Receivable | Substandard | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	2,136	2,590
Purchased Loans Receivable | Substandard | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Substandard | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Substandard | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	3,445	3,703
Purchased Loans Receivable | Substandard | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans	101	101
Purchased Loans Receivable | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Doubtful | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Doubtful | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Doubtful | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Doubtful | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Doubtful | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss | One-to-four Family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss | Multi-family Residential
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss | Construction
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss | Commercial
Financing Receivable, Recorded Investment [Line Items]
Purchased loans
Purchased Loans Receivable | Loss | Consumer
Financing Receivable, Recorded Investment [Line Items]
Purchased loans

XML

Intangible Assets - Summary of current year and estimated future amortization expense for core deposit intangible (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Total	$ 357	$ 391
Core Deposit
Finite-Lived Intangible Assets [Line Items]
2015	82
2016	110
2017	110
2018	55
Total	$ 357

XML

Financing Receivables - Loans by delinquency, nonaccrual status and impaired loans (Details 5) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Originated loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	$ 1,725	$ 999
Greater than 90 Days	1,115	1,555
Total Past Due	2,840	2,554
Current & Accruing	250,763	248,358
Total Loan Nonaccrual	2,112	2,288
Originated loans	254,600	251,645
Recorded Investment 90 Days and Accruing
Originated loans | 1-4 family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	1,533	999
Greater than 90 Days	875	1,317
Total Past Due	2,408	2,316
Current & Accruing	164,880	165,088
Total Loan Nonaccrual	1,854	2,031
Originated loans	168,267	168,118
Recorded Investment 90 Days and Accruing
Originated loans | Multi-family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	192
Greater than 90 Days	96	95
Total Past Due	288	95
Current & Accruing	16,227	17,090
Total Loan Nonaccrual	96	95
Originated loans	16,515	17,185
Recorded Investment 90 Days and Accruing
Originated loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days
Total Past Due
Current & Accruing	8,733	8,327
Total Loan Nonaccrual
Originated loans	8,733	8,327
Recorded Investment 90 Days and Accruing
Originated loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days	144	143
Total Past Due	144	143
Current & Accruing	60,116	57,051
Total Loan Nonaccrual	162	162
Originated loans	60,278	57,213
Recorded Investment 90 Days and Accruing
Originated loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days
Total Past Due
Current & Accruing	807	802
Total Loan Nonaccrual
Originated loans	807	802
Recorded Investment 90 Days and Accruing
Purchased loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	2,220	2,033
Greater than 90 Days	2,340	2,356
Total Past Due	4,560	4,389
Current & Accruing	82,667	86,255
Total Loan Nonaccrual	3,281	2,799
Purchased loans	88,168	91,087
Recorded Investment 90 Days and Accruing
Purchased loans | 1-4 family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	2,089	1,846
Greater than 90 Days	1,721	1,737
Total Past Due	3,810	3,583
Current & Accruing	56,246	59,518
Total Loan Nonaccrual	2,627	2,144
Purchased loans	60,962	63,508
Recorded Investment 90 Days and Accruing
Purchased loans | Multi-family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days
Total Past Due
Current & Accruing	2,976	3,316
Total Loan Nonaccrual	262
Purchased loans	3,238	3,316
Recorded Investment 90 Days and Accruing
Purchased loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days
Total Past Due
Current & Accruing
Total Loan Nonaccrual
Purchased loans
Recorded Investment 90 Days and Accruing
Purchased loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due	131	187
Greater than 90 Days	619	619
Total Past Due	750	806
Current & Accruing	23,324	23,302
Total Loan Nonaccrual	392	655
Purchased loans	23,847	24,144
Recorded Investment 90 Days and Accruing
Purchased loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
>30-89 Days Past Due
Greater than 90 Days
Total Past Due
Current & Accruing	121	119
Total Loan Nonaccrual
Purchased loans	121	119
Recorded Investment 90 Days and Accruing

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Disclosures about Fair Value of Assets and Liabilities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Real estate acquired through foreclosure	$ 1,642	$ 1,815
Loans held for sale	1,648	1,332
Non Recurring Basis | Total
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Real estate acquired through foreclosure	1,642	1,815
Loans held for sale	1,648	1,332
Impaired loans	14,935	15,382
Non Recurring Basis | Quoted prices in active markets for identical assets (Level 1)
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Real estate acquired through foreclosure
Loans held for sale
Impaired loans
Non Recurring Basis | Significant other observable inputs (Level 2)
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Real estate acquired through foreclosure	1,642	1,815
Loans held for sale	1,648	1,332
Impaired loans	14,935	15,382
Non Recurring Basis | Significant other unobservable inputs (Level 3)
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Real estate acquired through foreclosure
Loans held for sale
Impaired loans

XML

Stock Option Plan - Information of options outstanding (Details 1) (Stock Incentive Plan, Stock Options, USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding	425,219	758,947	369,939
Exercise price, lower	$ 8.30
Exercise price, upper	$ 15.90
Weighted-average exercise price	$ 12.50	$ 12.67	$ 12.80
Weighted-average remaining contractual life	4 years 8 months 12 days

XML

Financing Receivables - Modifications as of date (Details 7) (Loans Receivable, USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015 Contract	Dec. 31, 2014 Contract
Financing Receivable, Modifications [Line Items]
Number of contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Subsequently defaulted, number of contracts
Subsequently defaulted, recorded investment
1-4 Family Residential
Financing Receivable, Modifications [Line Items]
Number of contracts		8
Pre-Modification Outstanding Recorded Investment		2,529
Post-Modification Outstanding Recorded Investment		2,529
Subsequently defaulted, number of contracts		5
Subsequently defaulted, recorded investment		724
Multi-family Residential
Financing Receivable, Modifications [Line Items]
Number of contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Subsequently defaulted, number of contracts
Subsequently defaulted, recorded investment
Construction
Financing Receivable, Modifications [Line Items]
Number of contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Subsequently defaulted, number of contracts
Subsequently defaulted, recorded investment
Commercial
Financing Receivable, Modifications [Line Items]
Number of contracts		1
Pre-Modification Outstanding Recorded Investment		100
Post-Modification Outstanding Recorded Investment		100
Subsequently defaulted, number of contracts		1
Subsequently defaulted, recorded investment		99
Consumer
Financing Receivable, Modifications [Line Items]
Number of contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Subsequently defaulted, number of contracts
Subsequently defaulted, recorded investment

XML

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of future amortization expense

	(In thousands)
2015	$	82
2016		110
2017		110
2018		55
Total	$	357

XML

Financing Receivables - Recorded investment in loans (Details) (Loans Receivable, USD $) In Thousands, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	$ 89,826
Purchased loans book value	88,168	[1]
Originated loans	254,600	[2]
Ending balance	342,768		342,732
One-to-four Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	62,177
Purchased loans book value	60,962	[1]
Originated loans	168,267	[2]
Ending balance	229,229		231,626
Multi-family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	3,264
Purchased loans book value	3,238	[1]
Originated loans	16,515	[2]
Ending balance	19,753		20,501
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans
Purchased loans book value		[1]
Originated loans	8,733	[2],[3]
Ending balance	8,733		8,327
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	24,253
Purchased loans book value	23,847	[1]
Originated loans	60,278	[2]
Ending balance	84,125		81,357
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	132
Purchased loans book value	121	[1]
Originated loans	807	[2]
Ending balance	928		921
Credit Impaired Purchased Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(1,275)
Credit Impaired Purchased Loans | One-to-four Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(965)
Credit Impaired Purchased Loans | Multi-family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(2)
Credit Impaired Purchased Loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount
Credit Impaired Purchased Loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(308)
Credit Impaired Purchased Loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount
Non-impaired Purchased Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(383)
Non-impaired Purchased Loans | One-to-four Family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(250)
Non-impaired Purchased Loans | Multi-family Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(24)
Non-impaired Purchased Loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount
Non-impaired Purchased Loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	(98)
Non-impaired Purchased Loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value discount	$ (11)

[1] Loans purchased in acquisition of First Franklin

[2] Includes loans held for sale

[3] Before consideration of undisbursed loans-in-process

XML

Income Taxes - Federal income tax on earnings differs from that computed at statutory corporate tax rate (Parentheticals) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Federal income taxes at statutory rate	34.00%	34.00%

XML

Investment and Mortgage-backed Securities - Amortized cost of investment securities by contractual maturity (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
One to five years	$ 61,012
Five to ten years	43,333
More than ten years	34,960
Amortized cost of investment securities	$ 139,305	$ 129,298

XML

Financing Receivables - Activity for accretable discount related to acquired credit impaired loans (Details 2) (Loans Receivable, Credit impaired loans, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Loans Receivable | Credit impaired loans
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable discount at December 31, 2014:	$ 6,205
Reclass from nonaccretable difference to accretable discount
Less transferred to other real estate owned
Less accretion	(185)
Accretable discount at March 31, 2015:	$ 6,020

XML

Disclosures About Fair Value of Assets and Liabilities (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Total
Financial assets:
Cash and cash equivalents	$ 32,553	$ 42,439
Mortgage-backed securities
Loans receivable - net	356,059	358,500
Federal Home Loan Bank stock	8,651	8,651
Accrued interest receivable	1,489	1,801
Financial liabilities:
Deposits	455,059	451,165
Advances from the Federal Home Loan Bank	14,079	15,726
Advances by borrowers for taxes and insurance	1,661	2,651
Accrued interest payable	56	58
Quoted prices in active markets for identical assets (Level 1)
Financial assets:
Cash and cash equivalents	32,533	42,439
Mortgage-backed securities
Loans receivable - net
Federal Home Loan Bank stock
Accrued interest receivable
Financial liabilities:
Deposits
Advances from the Federal Home Loan Bank
Advances by borrowers for taxes and insurance
Accrued interest payable
Significant other observable inputs (Level 2)
Financial assets:
Cash and cash equivalents
Mortgage-backed securities
Loans receivable - net	356,059	358,500
Federal Home Loan Bank stock	8,651	8,651
Accrued interest receivable	1,489	1,801
Financial liabilities:
Deposits	455,059	451,165
Advances from the Federal Home Loan Bank	14,079	15,726
Advances by borrowers for taxes and insurance	1,661	2,651
Accrued interest payable	56	58
Significant other unobservable inputs (Level 3)
Financial assets:
Cash and cash equivalents
Mortgage-backed securities
Loans receivable - net
Federal Home Loan Bank stock
Accrued interest receivable
Financial liabilities:
Deposits
Advances from the Federal Home Loan Bank
Advances by borrowers for taxes and insurance
Accrued interest payable

XML

Principles of Consolidation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Principles of Consolidation

2.       Principles of Consolidation

The accompanying consolidated financial statements as of and for the three months ended March 31, 2015 and 2014 include the accounts of the Corporation and its wholly-owned subsidiary, the Savings Bank.  All significant intercompany items have been eliminated.

XML

Income Taxes (Detail Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Net operating losses to carryforward	$ 2.4
Period for carryforward net operating losses	18 years
Losses on an annual basis to offset current year taxable income	$ 1.1
Income tax benefit, likelihood of realized on ultimate settlement	greater than 50 percent

XML

Liquidity and Capital Resources (Detail Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Schedule Of Liquidity and Capital Resources [Line Items]
Loan originations	$ 24.4	$ 15.2
Increase (decrease) in deposits	3.7	2.7
Federal Home Loan Bank Of Cincinnati
Schedule Of Liquidity and Capital Resources [Line Items]
Outstanding borrowings from the Federal Home Loan Bank of Cincinnati	13.9		14.9
Maximum possible increase in borrowings from Federal Home Loan Bank	$ 156.3		$ 132.1

XML

Liquidity and Capital Resources - Information regarding regulatory capital position (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Liquidity and Capital Resources [Abstract]
Tier 1 Leverage, Required Ratio	5.00%	5.00%
Tier 1 Leverage, Actual Amount	$ 78,195	$ 77,752
Tier 1 Leverage, Actual Ratio	14.00%	13.90%
Common Equity Tier 1 Capital, Required Ratio	6.50%
Common Equity Tier 1 Capital, Actual Amount	78,195
Common Equity Tier 1 Capital, Actual Ratio	23.90%
Tier 1 Risk-Based Capital, Required Ratio	8.00%	6.00%
Tier 1 Risk-Based Capital, Actual Amount	78,195	77,752
Tier 1 Risk-Based Capital, Actual Ratio	23.90%	24.50%
Total Capital, Required Ratio	10.00%	10.00%
Total Capital, Actual Amount	$ 80,518	$ 79,988
Total Capital , Actual Ratio	24.60%	25.20%

XML

Financing Receivables - Impaired Loans (Details 6) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance	$ 432	$ 377
Recorded Investment	14,935	15,382
Unpaid Principal Balance	14,935	15,382
Average Recorded Investment	15,161	15,737
Interest Income Recognized	145	438
Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	993
Unpaid Principal Balance, with no related allowance	993
Related Allowance, with no related allowance	231
Average Recorded Investment, with no related allowance	816
Interest Income Recognized, with no related allowance
Related Allowance		113
Recorded Investment		639
Unpaid Principal Balance		639
Average Recorded Investment		263
Interest Income Recognized		12
Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	10,458
Unpaid Principal Balance, with no related allowance	10,458
Average Recorded Investment, with no related allowance	10,563
Interest Income Recognized, with no related allowance	145
Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	53
Unpaid Principal Balance, with no related allowance	53
Related Allowance, with no related allowance	24
Average Recorded Investment, with no related allowance	53
Interest Income Recognized, with no related allowance
Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		10,667
Unpaid Principal Balance, with no related allowance		10,667
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		10,747
Interest Income Recognized, with no related allowance		347
Recorded Investment, with related allowance		53
Unpaid Principal Balance, with related allowance		53
Related Allowance		19
Average Recorded Investment, with related allowance		16
Interest Income Recognized, with related allowance
Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	1,319	1,735
Unpaid Principal Balance, with no related allowance	1,319	1,735
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	1,528	2,199
Interest Income Recognized, with no related allowance		33
Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	1,568	1,575
Unpaid Principal Balance, with no related allowance	1,568	1,575
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	1,572	2,278
Interest Income Recognized, with no related allowance		37
Recorded Investment, with related allowance	544	713
Unpaid Principal Balance, with related allowance	544	713
Related Allowance	177	245
Average Recorded Investment, with related allowance	629	234
Interest Income Recognized, with related allowance		9
1-4 Family Residential | Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance	303	370
Recorded Investment	7,678	7,780
Unpaid Principal Balance	7,678	7,780
Average Recorded Investment	7,730	7,720
Interest Income Recognized	47	135
1-4 Family Residential | Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	601
Unpaid Principal Balance, with no related allowance	601
Related Allowance, with no related allowance	109
Average Recorded Investment, with no related allowance	620
Interest Income Recognized, with no related allowance
Related Allowance		113
Recorded Investment		639
Unpaid Principal Balance		639
Average Recorded Investment		263
Interest Income Recognized		12
1-4 Family Residential | Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	3,851
Unpaid Principal Balance, with no related allowance	3,851
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	3,914
Interest Income Recognized, with no related allowance	47
1-4 Family Residential | Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	53
Unpaid Principal Balance, with no related allowance	53
Related Allowance, with no related allowance	24
Average Recorded Investment, with no related allowance	53
Interest Income Recognized, with no related allowance
1-4 Family Residential | Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		3,977
Unpaid Principal Balance, with no related allowance		3,977
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		3,578
Interest Income Recognized, with no related allowance		61
Recorded Investment, with related allowance		53
Unpaid Principal Balance, with related allowance		53
Related Allowance		19
Average Recorded Investment, with related allowance		16
Interest Income Recognized, with related allowance
1-4 Family Residential | Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	1,319	1,080
Unpaid Principal Balance, with no related allowance	1,319	1,080
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	1,200	1,863
Interest Income Recognized, with no related allowance		23
1-4 Family Residential | Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	1,357	1,365
Unpaid Principal Balance, with no related allowance	1,357	1,365
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	1,361	1,786
Interest Income Recognized, with no related allowance		30
Recorded Investment, with related allowance	497	666
Unpaid Principal Balance, with related allowance	497	666
Related Allowance	170	238
Average Recorded Investment, with related allowance	582	214
Interest Income Recognized, with related allowance		9
Multi-family Residential | Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance
Recorded Investment	455	455
Unpaid Principal Balance	455	455
Average Recorded Investment	456	803
Interest Income Recognized	5
Multi-family Residential | Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Multi-family Residential | Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	359
Unpaid Principal Balance, with no related allowance	359
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	360
Interest Income Recognized, with no related allowance	5
Multi-family Residential | Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Multi-family Residential | Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		360
Unpaid Principal Balance, with no related allowance		360
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		708
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Multi-family Residential | Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Multi-family Residential | Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	96	95
Unpaid Principal Balance, with no related allowance	96	95
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	96	95
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Construction | Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Construction | Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Construction | Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Construction | Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Construction | Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Construction | Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Construction | Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Commercial | Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance	129	7
Recorded Investment	6,801	7,146
Unpaid Principal Balance	6,801	7,146
Average Recorded Investment	6,974	7,205
Interest Income Recognized	93	303
Commercial | Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	392
Unpaid Principal Balance, with no related allowance	392
Related Allowance, with no related allowance	122
Average Recorded Investment, with no related allowance	196
Interest Income Recognized, with no related allowance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Commercial | Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	6,247
Unpaid Principal Balance, with no related allowance	6,247
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	6,288
Interest Income Recognized, with no related allowance	93
Commercial | Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Commercial | Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		6,329
Unpaid Principal Balance, with no related allowance		6,329
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		6,460
Interest Income Recognized, with no related allowance		286
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Commercial | Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		655
Unpaid Principal Balance, with no related allowance		655
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	328	328
Interest Income Recognized, with no related allowance		10
Commercial | Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	115	115
Unpaid Principal Balance, with no related allowance	115	115
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance	115	397
Interest Income Recognized, with no related allowance		7
Recorded Investment, with related allowance	47	47
Unpaid Principal Balance, with related allowance	47	47
Related Allowance	7	7
Average Recorded Investment, with related allowance	47	20
Interest Income Recognized, with related allowance
Consumer | Loans Receivable
Financing Receivable, Impaired [Line Items]
Related Allowance
Recorded Investment	1	1
Unpaid Principal Balance	1	1
Average Recorded Investment	1	9
Interest Income Recognized
Consumer | Purchased loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Related Allowance
Recorded Investment
Unpaid Principal Balance
Average Recorded Investment
Interest Income Recognized
Consumer | Purchased loans | With fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance	1
Unpaid Principal Balance, with no related allowance	1
Average Recorded Investment, with no related allowance	1
Interest Income Recognized, with no related allowance
Consumer | Purchased loans | With no fair value discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Consumer | Purchased loans | With Credit Quality Discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance		1
Unpaid Principal Balance, with no related allowance		1
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		1
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance
Consumer | Purchased loans | With no credit quality discount
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance		8
Interest Income Recognized, with no related allowance
Consumer | Originated loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, with no related allowance
Unpaid Principal Balance, with no related allowance
Related Allowance, with no related allowance
Average Recorded Investment, with no related allowance
Interest Income Recognized, with no related allowance
Recorded Investment, with related allowance
Unpaid Principal Balance, with related allowance
Related Allowance
Average Recorded Investment, with related allowance
Interest Income Recognized, with related allowance

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Disclosures about Fair Value of Assets and Liabilities - Estimated fair values of Corporation's financial instruments (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financial assets
Investment securities	$ 138,735	$ 126,999
Accrued interest receivable	1,031	1,031
Federal Home Loan Bank stock	8,651	8,651
Financial liabilities
Deposits	455,523	451,784
Accrued interest payable	56	58
Advances by borrowers for taxes and insurance	1,661	2,651
Carrying value
Financial assets
Cash and cash equivalents	32,553	42,439
Investment securities	138,735	126,999
Mortgage-backed securities	8,933	9,400
Loans receivable - net and loans held for sale	338,035	337,095
Accrued interest receivable	1,489	1,801
Federal Home Loan Bank stock	8,651	8,651
Financial assets, fair value	528,396	526,385
Financial liabilities
Deposits	455,523	451,784
Advances from the Federal Home Loan Bank	13,857	14,851
Accrued interest payable	56	58
Advances by borrowers for taxes and insurance	1,661	2,651
Financial liabilities, fair value	471,097	469,344
Fair value
Financial assets
Cash and cash equivalents	32,553	42,439
Investment securities	138,735	126,999
Mortgage-backed securities	8,933	9,400
Loans receivable - net and loans held for sale	356,059	358,500
Accrued interest receivable	1,489	1,801
Federal Home Loan Bank stock	8,651	8,651
Financial assets, fair value	546,420	547,790
Financial liabilities
Deposits	455,059	451,165
Advances from the Federal Home Loan Bank	14,079	15,726
Accrued interest payable	56	58
Advances by borrowers for taxes and insurance	1,661	2,651
Financial liabilities, fair value	$ 470,855	$ 469,600

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Earnings Per Share - Summary of earnings Per Share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Weighted-average common shares outstanding (basic)	6,573,652	6,653,983
Dilutive effect of assumed exercise of stock options	90,132	4,508
Weighted-average common shares outstanding (diluted)	6,663,784	6,658,491

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Earnings Per Share (Detail Textuals)	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Unallocated shares held by the ESOP	158,950	168,300

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Basis Of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

Cheviot Financial Corp. (“Cheviot Financial” or the “Corporation”) is a savings and loan holding company, the principal asset of which consists of its ownership of Cheviot Savings Bank (the “Savings Bank”). The Savings Bank conducts a general banking business in southwestern Ohio which consists of attracting deposits and applying those funds primarily to the origination of real estate loans. The Savings Bank’s profitability is significantly dependent on net interest income, which is the difference between interest income from interest-earning assets and the interest expense paid on interest-bearing liabilities. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances.

On January 18, 2012, we completed our second step reorganization and sale of common stock. Prior to the completion of the second step conversion, Cheviot Financial was a federal corporation and mid-tier holding company. Following the reorganization Cheviot Financial is the Maryland incorporated holding company of the Savings Bank.

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Cheviot Financial included in the Annual Report on Form 10-K for the year ended December 31, 2014. However, in the opinion of management, all adjustments (consisting of only normal recurring accruals) which are necessary for a fair presentation of the consolidated financial statements have been included. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results which may be expected for the entire year.

Cheviot Financial evaluates subsequent events through the date of filing with the Securities and Exchange Commission.

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Stock Option Plan - Changes in Stock Option (Details) (Stock Incentive Plan, Stock Options, USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Stock Incentive Plan | Stock Options
Shares
Outstanding at beginning of period	758,947	369,939
Granted		400,000
Exercised	(261,728)	(10,992)
Forfeited	(72,000)
Outstanding at end of period	425,219	758,947
Options exercisable at period-end	91,081	363,791
Options expected to be exercisable at year-end
Weighted average exercise price
Outstanding at beginning of period	$ 12.67	$ 12.80
Granted		$ 12.48
Exercised	$ 13.01	$ 9.94
Forfeited	$ 12.48
Outstanding at end of period	$ 12.50	$ 12.67
Options exercisable at period-end	$ 12.79	$ 12.86
Fair value of options granted		$ 1.56

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Investment and Mortgage-backed Securities - Continuous unrealized loss position (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015 Security
Schedule Of Marketable Securities [Line Items]
Temporarily impaired securities, number of investments, less than 12 months	2
Temporarily impaired securities, fair value, less than 12 months	$ 19,931
Temporarily impaired securities, unrealized losses, less than 12 months	69
Temporarily impaired securities, number of investments, 12 months or longer	12
Temporarily impaired securities, fair value, 12 months or longer	57,628
Temporarily impaired securities, unrealized losses, 12 months or longer	718
Temporarily impaired securities, number of investments	14
Temporarily impaired securities, total fair value	77,559
Temporarily impaired securities, unrealized losses	787
U.S. Government agency securities
Schedule Of Marketable Securities [Line Items]
Temporarily impaired securities, number of investments, less than 12 months	2
Temporarily impaired securities, fair value, less than 12 months	19,931
Temporarily impaired securities, unrealized losses, less than 12 months	69
Temporarily impaired securities, number of investments, 12 months or longer	12
Temporarily impaired securities, fair value, 12 months or longer	57,628
Temporarily impaired securities, unrealized losses, 12 months or longer	718
Temporarily impaired securities, number of investments	14
Temporarily impaired securities, total fair value	77,559
Temporarily impaired securities, unrealized losses	787
Municipal obligations
Schedule Of Marketable Securities [Line Items]
Temporarily impaired securities, number of investments, less than 12 months
Temporarily impaired securities, fair value, less than 12 months
Temporarily impaired securities, unrealized losses, less than 12 months
Temporarily impaired securities, number of investments, 12 months or longer
Temporarily impaired securities, fair value, 12 months or longer
Temporarily impaired securities, unrealized losses, 12 months or longer
Temporarily impaired securities, number of investments
Temporarily impaired securities, total fair value
Temporarily impaired securities, unrealized losses
Mortgage-backed securities
Schedule Of Marketable Securities [Line Items]
Temporarily impaired securities, number of investments, less than 12 months
Temporarily impaired securities, fair value, less than 12 months
Temporarily impaired securities, unrealized losses, less than 12 months
Temporarily impaired securities, number of investments, 12 months or longer
Temporarily impaired securities, fair value, 12 months or longer
Temporarily impaired securities, unrealized losses, 12 months or longer
Temporarily impaired securities, number of investments
Temporarily impaired securities, total fair value
Temporarily impaired securities, unrealized losses

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Financing Receivables - Allowance for credit losses (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Allowance for loan losses:
Provision	$ 143	$ 200
Loans Receivable
Allowance for loan losses:
Beginning balance	2,236	1,697	1,697
Provision	143		1,024
Charge-offs	(86)		(562)
Recoveries	30		77
Ending balance	2,323		2,236
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	342,768		342,732
Individually evaluated for impairment	4,424		4,662
Collectively evaluated for impairment	327,833		327,350
Loans acquired with deteriorated credit quality	10,511		10,720
Loans Receivable | One-to-four Family Residential
Allowance for loan losses:
Beginning balance	1,813	1,352	1,352
Provision	(1)		947
Charge-offs	(86)		(520)
Recoveries	27		34
Ending balance	1,753		1,813
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	229,229		231,626
Individually evaluated for impairment	3,774		3,750
Collectively evaluated for impairment	221,551		223,846
Loans acquired with deteriorated credit quality	3,904		4,030
Loans Receivable | Multi-family Residential
Allowance for loan losses:
Beginning balance	209	194	194
Provision	25		15
Charge-offs
Recoveries
Ending balance	234		209
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	19,753		20,501
Individually evaluated for impairment	96		95
Collectively evaluated for impairment	19,298		20,046
Loans acquired with deteriorated credit quality	359		360
Loans Receivable | Construction
Allowance for loan losses:
Beginning balance	7	9	9
Provision	3		(2)
Charge-offs
Recoveries
Ending balance	10		7
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	8,733		8,327
Individually evaluated for impairment
Collectively evaluated for impairment	8,733		8,327
Loans acquired with deteriorated credit quality
Loans Receivable | Commercial
Allowance for loan losses:
Beginning balance	199	131	131
Provision	117		64
Charge-offs			(39)
Recoveries	2		43
Ending balance	318		199
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	84,125		81,357
Individually evaluated for impairment	554		817
Collectively evaluated for impairment	77,324		74,211
Loans acquired with deteriorated credit quality	6,247		6,329
Loans Receivable | Consumer
Allowance for loan losses:
Beginning balance	8	11	11
Provision	(1)
Charge-offs			(3)
Recoveries	1
Ending balance	8		8
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Ending balance	928		921
Individually evaluated for impairment
Collectively evaluated for impairment	927		920
Loans acquired with deteriorated credit quality	1		1
Originated Loans Receivable
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	177		245
Collectively evaluated for impairment	1,493		1,380
Originated Loans Receivable | One-to-four Family Residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	170		238
Collectively evaluated for impairment	1,093		1,005
Originated Loans Receivable | Multi-family Residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Collectively evaluated for impairment	234		209
Originated Loans Receivable | Construction
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Collectively evaluated for impairment	10		7
Originated Loans Receivable | Commercial
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	7		7
Collectively evaluated for impairment	148		151
Originated Loans Receivable | Consumer
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Collectively evaluated for impairment	8		8
Purchased Loans Receivable
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	255		135
Loans acquired with deteriorated credit quality	398		476
Purchased Loans Receivable | One-to-four Family Residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	133		135
Loans acquired with deteriorated credit quality	357		435
Purchased Loans Receivable | Multi-family Residential
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Loans acquired with deteriorated credit quality
Purchased Loans Receivable | Construction
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Loans acquired with deteriorated credit quality
Purchased Loans Receivable | Commercial
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment	122
Loans acquired with deteriorated credit quality	41		41
Purchased Loans Receivable | Consumer
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually evaluated for impairment
Loans acquired with deteriorated credit quality

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 9,882	$ 22,757
Federal funds sold	16,570	14,941
Interest-earning deposits in other financial institutions	6,101	4,741
Cash and cash equivalents	32,553	42,439
Investment securities available for sale - at fair value	138,735	126,999
Mortgage-backed securities available for sale - at fair value	8,933	9,400
Loans receivable - net	336,387	335,763
Loans held for sale - at lower of cost or market	1,648	1,332
Real estate acquired through foreclosure - net	1,642	1,815
Office premises and equipment - at depreciated cost	11,327	11,428
Federal Home Loan Bank stock - at cost	8,651	8,651
Accrued interest receivable on loans	1,031	1,031
Accrued interest receivable on mortgage-backed securities	32	35
Accrued interest receivable on investments and interest-earning deposits	426	735
Goodwill	10,309	10,309
Core deposit intangible	357	391
Prepaid expenses and other assets	4,214	3,915
Bank-owned life insurance	16,070	15,960
Prepaid federal income taxes	13	12
Deferred federal income taxes	374	1,022
Total assets	572,702	571,237
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	455,523	451,784
Advances from the Federal Home Loan Bank	13,857	14,851
Advances by borrowers for taxes and insurance	1,661	2,651
Accrued interest payable	56	58
Accounts payable and other liabilities	4,718	5,711
Total liabilities	475,815	475,055
Shareholders' equity
Preferred stock - authorized 5,000,000 shares, $.01 par value; none issued
Common stock - authorized 30,000,000 shares, $.01 par value; 6,753,145 and 6,718,795 shares issued at March 31, 2015 and December 31, 2014	221	220
Additional paid-in capital	55,921	55,827
Shares acquired by stock benefit plans	(1,470)	(1,470)
Retained earnings - restricted	42,544	43,151
Accumulated comprehensive loss, unrealized losses on securities available for sale, net of related tax benefit	(329)	(1,546)
Total shareholders' equity	96,887	96,182
Total liabilities and shareholders' equity	$ 572,702	$ 571,237

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Disclosures About Fair Value of Assets and Liabilities -Summary of fair value measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 138,735	$ 126,999
U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	136,957	125,223
Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,778	1,776
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,933	9,400
Quoted prices in active markets for identical assets (Level 1) | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Quoted prices in active markets for identical assets (Level 1) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Quoted prices in active markets for identical assets (Level 1) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Significant other observable inputs (Level 2) | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	136,957	125,223
Significant other observable inputs (Level 2) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,778	1,776
Significant other observable inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	8,933	9,400
Significant other unobservable inputs (Level 3) | U.S. Government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Significant other unobservable inputs (Level 3) | Municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Significant other unobservable inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parentheticals) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement Of Income and Comprehensive Income [Abstract]
Tax (benefits) expense of unrealized holding gains (losses) on securities	$ 627	$ 1,023

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Stock Option Plan (Detail Textuals 1) (Stock Incentive Plan, Stock Options)	3 Months Ended
	Mar. 31, 2015
Stock Incentive Plan | Stock Options
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Fair value assumption, method used	Black-Scholes options-pricing model
Dividend yield	2.88%
Expected volatility	14.25%
Risk-free interest rate	2.55%
Expected life of options	10 years

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Investment and Mortgage-backed Securities (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities

			March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	137,614	$	130	$	787	$	136,957
Municipal obligations		1,691		87		-		1,778
	$	139,305	$	217	$	787	$	138,735
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	127,607	$	7	$	2,391	$	125,223
Municipal obligations		1,691		85		-		1,776
	$	129,298	$	92	$	2,391	$	126,999

Schedule of amortized cost of investment securities by contractual term to maturity

	March 31,
	2015
	(In thousands)
One to five years	$	61,012
Five to ten years		43,333
More than ten years		34,960
	$	139,305

Schedule of amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of mortgage-backed securities

	March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	8,861	$	72	$	-	$	8,933
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	9,443	$	-	$	43	$	9,400

Schedule of amortized cost of mortgage-backed securities, including those designated as available for sale, by contractual terms to maturity

	March 31,
	2015
	(In thousands)
Due in one year or less	$	1,582
Due in more than one year through five years		4,435
Due in more than five years through ten years		2,365
Due in more than ten years		479
	$	8,861

Schedule of unrealized loss position

	Less than 12 months						12 months or longer								Total
Description of	Number of		Fair		Unrealized		Number of		Fair		Unrealized		Number of		Fair		Unrealized
securities	investments		value		losses		investments		value		losses		investments		value		losses
(Dollars in thousands)
U.S. Government agency securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787
Municipal obligations		-		-		-		-		-		-		-		-		-
Mortgage-backed securities		-		-		-		-		-		-		-		-		-
Total temporarily impaired securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787

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Investment and Mortgage-backed Securities - Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available for sale:
Amortized cost	$ 139,305	$ 129,298
Gross unrealized holding gains	217	92
Gross unrealized holding losses	787	2,391
Estimated fair value	138,735	126,999
U.S. Government agency securities
Available for sale:
Amortized cost	137,614	127,607
Gross unrealized holding gains	130	7
Gross unrealized holding losses	787	2,391
Estimated fair value	136,957	125,223
Municipal obligations
Available for sale:
Amortized cost	1,691	1,691
Gross unrealized holding gains	87	85
Gross unrealized holding losses
Estimated fair value	$ 1,778	$ 1,776

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Disclosures About Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	value		value		value		value
	(In thousands)
Financial assets
Cash and cash equivalents	$	32,553	$	32,553	$	42,439	$	42,439
Investment securities		138,735		138,735		126,999		126,999
Mortgage-backed securities		8,933		8,933		9,400		9,400
Loans receivable –
net and loans held for sale		338,035		356,059		337,095		358,500
Accrued interest receivable		1,489		1,489		1,801		1,801
Federal Home Loan Bank stock		8,651		8,651		8,651		8,651
	$	528,396	$	546,420	$	526,385	$	547,790
Financial liabilities
Deposits	$	455,523	$	455,059	$	451,784	$	451,165
Advances from the Federal Home Loan Bank		13,857		14,079		14,851		15,726
Accrued interest payable		56		56		58		58
Advances by borrowers for taxes and insurance		1,661		1,661		2,651		2,651
	$	471,097	$	470,855	$	469,344	$	469,600

Schedule of available for sale securities

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
Securities available for sale at March 31, 2015:
U.S. Government agency securities	$	136,957		-	$	136,957		-
Municipal obligations		1,778		-		1,778		-
Mortgage-backed securities		8,933		-		8,933		-
Securities available for sale at December 31, 2014:
U.S. Government agency securities	$	125,223		-	$	125,223		-
Municipal obligations		1,776		-		1,776		-
Mortgage-backed securities		9,400		-		9,400		-

Schedule of fair value on a nonrecurring basis

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
March 31, 2015:
Real estate acquired through foreclosure	$	1,642		-	$	1,642		-
Loans held for sale		1,648		-		1,648		-
Impaired loans		14,935		-		14,935		-
December 31, 2014:
Real estate acquired through foreclosure	$	1,815		-	$	1,815		-
Loans held for sale		1,332		-		1,332		-
Impaired loans		15,382		-		15,382		-

Schedule of financial instrument measured on recurring and non recurring basis

			Quoted prices		Significant		Significant
			in active		other		other
			markets for		observable		unobservable
			identical assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2015:			(In thousands)
Financial assets:
Cash and cash equivalents	$	32,553	$	32,533	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		356,059		-		356,059		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,489		-		1,489		-
Financial liabilities:
Deposits		455,059		-		455,059		-
Advances from the Federal Home Loan Bank		14,079		-		14,079		-
Advances by borrowers for taxes and insurance		1,661		-		1,661		-
Accrued interest payable		56		-		56		-

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
December 31, 2014:	(In thousands)
Financial assets:
Cash and cash equivalents	$	42,439	$	42,439	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		358,500		-		358,500		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,801		-		1,801		-
Financial liabilities:
Deposits		451,165		-		451,165		-
Advances from the Federal Home Loan Bank		15,726		-		15,726		-
Advances by borrowers for taxes and insurance		2,651		-		2,651		-
Accrued interest payable		58		-		58		-

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net earnings for the period	$ 1	$ 815
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Amortization of premiums and discounts on investment and mortgage-backed securities, net	(3)	(3)
Depreciation	157	184
Amortization of deferred loan origination costs - net	49	14
Proceeds from sale of loans in the secondary market	9,348	3,886
Loans originated for sale in the secondary market	(9,569)	(4,002)
Gain on sale of loans	(205)	(67)
Gain on sale of investments designated as available for sale		(440)
Amortization of expense related to stock benefit plans	15	4
Provision for losses on loans	143	200
Amortization of fair value adjustments	(93)	(82)
(Gain) loss on real estate acquired through foreclosure	9	(21)
Impairment on real estate acquired through foreclosure	108	196
Net increase in cash surrender value of bank-owned life insurance	(110)	(116)
Increase (decrease) in cash, due to changes in:
Accrued interest receivable on loans		55
Accrued interest receivable on mortgage-backed securities	3	1
Accrued interest receivable on investments and interest-earning deposits	309	266
Prepaid expenses and other assets	(299)	(98)
Accrued interest payable	(2)	(4)
Accounts payable and other liabilities	(980)	397
Federal income taxes
Current	1	346
Deferred	22	346
Net cash flows provided by (used in) operating activities	(1,096)	1,877
Cash flows provided by (used in) investing activities:
Principal repayments on loans	14,152	15,539
Loan disbursements	(14,794)	(11,215)
Purchase of investment securities - available for sale	(24,996)
Proceeds from maturity of investment securities - available for sale	15,000	15,000
Proceeds from the sale of corporate securities		1,603
Principal repayments on mortgage-backed securities - available for sale	574	319
Principal repayments on mortgage-backed securities - held to maturity		121
Proceeds from the sale of real estate acquired through foreclosure	81	405
Purchase of office premises and equipment	(56)	(9)
Net cash flows provided by (used in) investing activities	(10,039)	21,763
Cash flows provided by (used in) financing activities:
Net increase (decrease) in deposits	3,739	(2,655)
Repayments on Federal Home Loan Bank advances	(972)	(1,439)
Advances by borrowers for taxes and insurance	(990)	(806)
Stock option expense, net	35	4
Common stock issued	45
Common stock repurchased		(428)
Dividends paid on common stock	(608)	(612)
Net cash flows provided by (used in) financing activities	1,249	(5,936)
Net increase in cash and cash equivalents	(9,886)	17,704
Cash and cash equivalents at beginning of period	42,439	22,112
Cash and cash equivalents at end of period	32,553	39,816
Cash paid during the period for:
Federal income taxes
Interest on deposits and borrowings	893	923
Supplemental disclosure of non-cash investing activities:
Transfer from loans to real estate acquired through foreclosure	27	280
Recognition of mortgage servicing rights	69	26
Deferred gain on real estate acquired through foreclosure		$ 4

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued
Common stock, shares authorized	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	6,753,145	6,718,795

XML

Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

10.     Intangible Assets

The Corporation recorded goodwill and other intangibles associated with the purchase of First Franklin and Franklin Savings in March 2011 totaling $11.6 million.  Goodwill is not amortized, but is periodically evaluated for impairment.  The Corporation did not recognize any impairment during the quarter ended March 31, 2015.  The carrying amount of the goodwill at March 31, 2015 was $10.3 million.

Identifiable intangibles are amortized to their estimated residual values over the expected useful lives.  Such lives are also periodically reassessed to determine if any amortization period adjustments are required.  During the quarter ended March 31, 2015, no such adjustments were recorded.  The identifiable intangible asset consists of a core deposit intangible which is being amortized on an accelerated basis over the useful life of such asset. The gross carrying amount of the core deposit intangible at March 31, 2015 was $1.3 million with $941,000 in accumulated amortization as of that date.

As of March 31, 2015, the current year and estimated future amortization expense for the core deposit intangible was:

	(In thousands)
2015	$	82
2016		110
2017		110
2018		55
Total	$	357

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Cheviot Financial Corp.
Entity Central Index Key	0001528843
Trading Symbol	chev
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,795,454
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

XML

Financing Receivables

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Financing Receivables

11. Financing Receivables

The recorded investment in loans was as follows as of March 31, 2015:

	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
	(In thousands)
Purchased loans	$	62,177		$	3,264		$	-		$	24,253		$	132		$	89,826
Fair value discount - Credit impaired purchased loans		(965	)		(2	)		-			(308	)		-			(1,275	)
Fair value discount – Non-impaired purchased loans		(250	)		(24	)		-			(98	)		(11	)		(383	)
Purchased loans book value(3)		60,962			3,238			-			23,847			121			88,168
Originated loans (1)		168,267			16,515			8,733	(2)		60,278			807			254,600
Ending balance	$	229,229		$	19,753		$	8,733		$	84,125		$	928		$	342,768

(1) Includes loans held for sale

(2) Before consideration of undisbursed loans-in-process

(3) Loans purchased in acquisition of First Franklin

The carrying amount of purchased loans consisting of credit-impaired purchased loans and non-impaired purchased loans is shown in the following table as of March 31, 2015.

			Credit
	Non-impaired		Impaired
	Purchased Loans		Purchased Loans
	(In thousands)
One-to-four family residential (1)	$	57,058	$	3,904
Multi-family residential		2,879		359
Construction		-		-
Commercial		17,600		6,247
Consumer		120		1
Total	$	77,657	$	10,511

(1) Includes home equity lines of credit

Activity during 2015 for the accretable discount related to acquired credit impaired loans is as follows:

	(In thousands)
Accretable discount at December 31, 2014:	$	6,205
Reclass from nonaccretable difference to accretable discount		-
Less transferred to other real estate owned		-
Less accretion		(185	)
Accretable discount at March 31, 2015:	$	6,020

The recorded investment in loans was as follows as of March 31, 2015. Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected on purchased impaired loans. If we have probable decreases in cash flows expected to be collected (other than due to decreases in interest rate indices and changes in prepayment assumptions), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in cash flows expected to be collected, we first reverse any previously established allowance for loan losses and then increase interest income as a prospective yield adjustment over the remaining life of the loan, or pool of loans. Estimates of cash flows are impacted by changes in interest rate indices for variable rate loans and prepayment assumptions, both of which are treated as prospective yield adjustments included in interest income. Cheviot Financial’s allowance at March 31, 2015 does not include any credit quality discount related to loans acquired from First Franklin, other than $653,000 for certain one-to-four family residential and nonresidential and commercial real estate loans. Due to uncertainties in the evaluation of allowance for loan loss, it is at least reasonably possible that management’s estimate of the outcome will change within the next year.

The following summarizes activity in the allowance for credit losses:

	March 31, 2015
	One-to four
	Family			Multi-family
	Residential			Residential		Construction		Commercial		Consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	1,813		$	209	$	7	$	199	$	8		$	2,236
Provision		(1	)		25		3		117		(1	)		143
Charge-offs		(86	)		-		-		-		-			(86	)
Recoveries		27			-		-		2		1			30
Ending balance	$	1,753		$	234	$	10	$	318	$	8		$	2,323
Originated loans:
Individually evaluated for impairment	$	170		$	-	$	-	$	7	$	-		$	177
Purchased loans:
Individually evaluated for impairment	$	133		$	-	$	-	$	122	$	-		$	255
Originated Loans:
Collectively evaluated for impairment	$	1,093		$	234	$	10	$	148	$	8		$	1,493
Purchased loans:
Loans acquired with deteriorated credit quality	$	357		$	-	$	-	$	41	$	-		$	398
Loans receivable:
Ending balance	$	229,229		$	19,753	$	8,733	$	84,125	$	928		$	342,768
Ending balance:
Individually evaluated for impairment	$	3,774		$	96	$	-	$	554	$	-		$	4,424
Ending balance:
Collectively evaluated for impairment	$	221,551		$	19,298	$	8,733	$	77,324	$	927		$	327,833
Ending balance:
Loans acquired with deteriorated credit quality	$	3,904		$	359	$	-	$	6,247	$	1		$	10,511

	December 31, 2014
	One-to four
	Family				Multi-family
	Residential				Residential		Construction			Commercial			Consumer			Total
		(In thousands)
Allowance for loan losses:
Beginning balance		$	1,352		$	194	$	9		$	131		$	11		$	1,697
Provision			947			15		(2	)		64			-			1,024
Charge-offs			(520	)		-		-			(39	)		(3	)		(562	)
Recoveries			34			-		-			43			-			77
Ending balance		$	1,813		$	209	$	7		$	199		$	8		$	2,236
Originated loans:
Individually evaluated for impairment		$	238		$	-	$	-		$	7		$	-		$	245
Purchased loans:
Individually evaluated for impairment		$	135		$	-	$	-		$	-		$	-		$	135
Originated Loans:
Collectively evaluated for impairment		$	1,005		$	209	$	7		$	151		$	8		$	1,380
Purchased loans:
Loans acquired with deteriorated credit quality		$	435		$	-	$	-		$	41		$	-		$	476
Loans receivable:
Ending balance		$	231,626		$	20,501	$	8,327		$	81,357		$	921		$	342,732
Ending balance:
Individually evaluated for impairment		$	3,750		$	95	$	-		$	817		$	-		$	4,662
Ending balance:
Collectively evaluated for impairment		$	223,846		$	20,046	$	8,327		$	74,211		$	920		$	327,350
Ending balance:
Loans acquired with deteriorated credit quality		$	4,030		$	360	$	-		$	6,329		$	1		$	10,720

The Corporation assigns credit risk grades to evaluated loans using grading standards employed by regulatory agencies. Loans judged to carry lower-risk attributes are assigned a “pass” grade, indicating a minimal likelihood of loss. Loans judged to carry a higher-risk attributes are referred to as “classified loans” and are further disaggregated, with increasing expectations for loss recognition, as “special mention”, “substandard”, “doubtful”, and “loss”. The Loan Classification of Assets committee assigns the credit risk grades to loans and reports to the board on a monthly basis the “classified asset” report.

The following table summarizes the credit risk profile by internally assigned grade:

	Originated Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	166,305	$	16,419	$	8,733	$	59,264	$	807	$	251,528
Special mention		-		-		-		-		-		-
Substandard		1,962		96		-		1,014		-		3,072
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,267	$	16,515	$	8,733	$	60,278	$	807	$	254,600
	Originated Loans at December 31, 2014
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	165,711	$	17,090	$	8,327	$	56,191	$	802	$	248,121
Special mention		-		-		-		-		-		-
Substandard		2,407		95		-		1,022		-		3,524
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,118	$	17,185	$	8,327	$	57,213	$	802	$	251,645
	Purchased Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	58,826	$	3,238	$	-	$	20,402	$	20	$	82,486
Special mention		-		-		-		-		-		-
Substandard		2,136		-		-		3,445		101		5,682
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	60,962	$	3,238	$	-	$	23,847	$	121	$	88,168

	Purchased Loans at December 31, 2014
	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
		(In thousands)
Grade:
Pass		$	60,918		$	3,316		$	-		$	20,441		$	18		$	84,693
Special mention			-			-			-			-			-			-
Substandard			2,590			-			-			3,703			101			6,394
Doubtful			-			-			-			-			-			-
Loss			-			-			-			-			-			-
Total		$	63,508		$	3,316		$	-		$	24,144		$	119		$	91,087

The following tables summarizes loans by delinquency, nonaccrual status and impaired loans:

	Age Analysis of Past Due Originated Loans Receivable As of March 31, 2015
	30-89 Days Past Due		Greater than 90 Days		Total Past Due		Current & Accruing		Nonaccrual		Total Loan Receivables		Recorded Investment 90 Days and Accruing
	(In thousands)
Real Estate:
1-4 family Residential	$	1,533	$	875	$	2,408	$	164,880	$	1,854	$	168,267	$	-
Multi-family Residential		192		96		288		16,227		96		16,515		-
Construction		-		-		-		8,733		-		8,733		-
Commercial		-		144		144		60,116		162		60,278		-
Consumer		-		-		-		807		-		807		-
Total	$	1,725	$	1,115	$	2,840	$	250,763	$	2,112	$	254,600	$	-

	Age Analysis of Past Due Originated Loans Receivable As of December 31, 2014
													Recorded
													Investment
	30-89 Days		90 Days		Total Past			Current			Total Loan		90 Days and
	Past Due		or more		Due		& Accruing		Nonaccrual		Receivables		Accruing
		(In thousands)
Real Estate:
1-4 family Residential	$	999	$	1,317	$	2,316	$	165,088	$	2,031	$	168,118	$	-
Multi-family		-		95		95		17,090		95		17,185		-
Construction		-		-		-		8,327		-		8,327		-
Commercial		-		143		143		57,051		162		57,213		-
Consumer		-		-		-		802		-		802		-
Total	$	999	$	1,555	$	2,554	$	248,358	$	2,288	$	251,645	$	-

		Age Analysis of Past Due Purchased Loans Receivable As of March 31, 2015
																			Recorded
																			Investment
		30-89 Days		Greater than			Total Past			Current &						Total Loan			90 Days and
		Past Due		90 Days			Due			Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	2,089		$	1,721		$	3,810		$	56,246		$	2,627		$	60,962		$	-
Multi-family Residential			-			-			-			2,976			262			3,238			-
Construction			-			-			-			-			-			-			-
Commercial			131			619			750			23,324			392			23,847			-
Consumer			-			-			-			121			-			121			-
Total		$	2,220		$	2,340		$	4,560		$	82,667		$	3,281		$	88,168		$	-

		Age Analysis of Past Due Purchased Loans Receivable As of December 31, 2014
																			Recorded
																			Investment
	30-89 Days			90 Days			Total Past			Current						Total Loan			90 Days and
	Past Due			or More			Due			& Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	1,846		$	1,737		$	3,583		$	59,518		$	2,144		$	63,508		$	-
Multi-family			-			-			-			3,316			-			3,316			-
Construction			-			-			-			-			-			-			-
Commercial			187			619			806			23,302			655			24,144			-
Consumer			-			-			-			119			-			119			-
Total		$	2,033		$	2,356		$	4,389		$	86,255		$	2,799		$	91,087		$	-

	Impaired Loans
	As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a fair value discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,851	$	3,851	$	-	$	3,914	$	47
Multi-family		359		359		-		360		5
Construction		-		-		-		-		-
Commercial		6,247		6,247		-		6,288		93
Consumer		1		1		-		1		-
Total	$	10,458	$	10,458	$	-	$	10,563	$	145
Purchased loans with no fair value discount and no related allowance recorded:
Real Estate:
1-4 family	$	53	$	53	$	24	$	53	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	24	$	53	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,319	$	1,319	$	-	$	1,200	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		328		-
Consumer		-		-		-		-		-
Total	$	1,319	$	1,319	$	-	$	1,528	$	-
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	601	$	601	$	109	$	620	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		392		392		122		196		-
Consumer		-		-		-		-		-
Total	$	993	$	993	$	231	$	816	$	-

			Impaired Loans
			As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,357	$	1,357	$	-	$	1,361	$	-
Multi-family		96		96		-		96		-
Construction		-		-		-		-		-
Commercial		115		115		-		115		-
Consumer		-		-		-		-		-
Total	$	1,568	$	1,568	$	-	$	1,572	$	-
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	497	$	497	$	170	$	582	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		47		-
Consumer		-		-		-		-		-
Total	$	544	$	544	$	177	$	629	$	-
Total:
Real Estate:
1-4 family
Residential	$	7,678	$	7,678	$	303	$	7,730	$	47
Multi-family		455		455		-		456		5
Construction		-		-		-		-		-
Commercial		6,801		6,801		129		6,974		93
Consumer		1		1		-		1		-
Total	$	14,935	$	14,935	$	432	$	15,161	$	145

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a credit quality discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,977	$	3,977	$	-	$	3,578	$	61
Multi-family		360		360		-		708		-
Construction		-		-		-		-		-
Commercial		6,329		6,329		-		6,460		286
Consumer		1		1		-		1		-
Total	$	10,667	$	10,667	$	-	$	10,747	$	347
Purchased loans with a credit quality discount and an allowance recorded:
Real Estate:
1-4 family
Residential	$	53	$	53	$	19	$	16	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	19	$	16	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,080	$	1,080	$	-	$	1,863	$	23
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		655		655		-		328		10
Consumer		-		-		-		8		-
Total	$	1,735	$	1,735	$	-	$	2,199	$	33
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	639	$	639	$	113	$	263	$	12
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	639	$	639	$	113	$	263	$	12

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,365	$	1,365	$	-	$	1,786	$	30
Multi-family		95		95		-		95		-
Construction		-		-		-		-		-
Commercial		115		115		-		397		7
Consumer		-		-		-		-		-
Total	$	1,575	$	1,575	$	-	$	2,278	$	37
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	666	$	666	$	238	$	214	$	9
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		20		-
Consumer		-		-		-		-		-
Total	$	713	$	713	$	245	$	234	$	9
Total:
Real Estate:
1-4 family
Residential	$	7,780	$	7,780	$	370	$	7,720	$	135
Multi-family		455		455		-		803		-
Construction		-		-		-		-		-
Commercial		7,146		7,146		7		7,205		303
Consumer		1		1		-		9		-
Total	$	15,382	$	15,382	$	377	$	15,737	$	438

	Modifications
	As of March 31, 2015
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		-	$	-	$	-
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		-		-		-
Consumer		-		-		-
	Modifications
	For the three months ended March 31, 2015
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		-	$	-
Multi-family Residential		-		-
Construction		-		-
Commercial		-		-
Consumer		-		-

	Modifications
	As of December 31, 2014
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
			(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		8	$	2,529	$	2,529
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		1		100		100
Consumer		-		-		-
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		5	$	724
Multi-family Residential		-		-
Construction		-		-
Commercial		1		99
Consumer		-		-

The modifications related to interest only payments ranging from a three to six month period. Due to the short term cash flow deficiency, no related allowance was recorded as a result of the restructurings. The collateral value was updated with recent appraisals which gave no indication of impairment.

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CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest income
Loans	$ 3,631	$ 3,754
Mortgage-backed securities	40	59
Investment securities	688	751
Interest-earning deposits and other	93	89
Total interest income	4,452	4,653
Interest expense
Deposits	779	771
Borrowings	112	149
Total interest expense	891	920
Net interest income	3,561	3,733
Provision for losses on loans	143	200
Net interest income after provision for losses on loans	3,418	3,533
Other income
Rental	28	25
Gain (loss) on sale of real estate acquired through foreclosure	(9)	25
Gain on sale of loans	205	67
Gain on sale of investment securities designated as available for sale		440
Earnings on bank-owned life insurance	110	116
Service fee income	345	370
Other operating	2	1
Total other income	681	1,044
General, administrative and other expense
Employee compensation and benefits	2,271	1,474
Occupancy and equipment	320	378
Property, payroll and other taxes	317	293
Data processing	200	160
Legal and professional	213	231
Advertising	81	75
FDIC expense	81	117
ATM processing expense	95	88
Real estate owned impairment	108	196
Core deposit intangible amortization	34	47
Other operating	356	357
Total general, administrative and other expense	4,076	3,416
Earnings before federal income taxes	23	1,161
Federal income taxes
Current
Deferred	22	346
Total federal income taxes	22	346
NET EARNINGS	$ 1	$ 815
EARNINGS PER SHARE
Basic (in dollars per share)	$ 0.00	$ 0.12
Diluted (in dollars per share)	$ 0.00	$ 0.12
Dividends declared per share (in dollars per share)	$ 0.09	$ 0.09

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Stock Option Plan

3 Months Ended

Mar. 31, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Stock Option Plan

5. Stock Option Plan

The Corporation established a Stock Incentive Plan that provides for grants of up to 891,517 stock options. During 2014, 400,000 stock options were granted in accordance with the 2013 Equity Incentive Plan subject to a five year vesting period in which the options granted will vest ratably annually beginning one year from the date of grant. The shares in the plan and shares granted prior to the second step conversion have been adjusted to reflect the exchange ratio of 0.857 for the second step conversion that occurred in 2012.

On April 23, 2013, shareholders of the Corporation approved the 2013 Equity Incentive Plan. The Plan provides for grants of up to 467,500 stock options. As of March 31, 2015, 400,000 option awards have been granted under the 2013 Equity Incentive Plan with 72,000 option awards forfeited.

The Corporation follows FASB Accounting Standard Codification Topic 718 (ASC 718), “Compensation – Stock Compensation,” for its stock option plans, and accordingly, the Corporation recognizes the expense of these grants as required. Stock-based employee compensation costs pertaining to stock options is reflected as a net increase in equity, for both any new grants, as well as for all unvested options outstanding, in both cases using the fair values established by usage of the Black-Scholes option pricing model, expensed over the vesting period of the underlying option.

The compensation cost recorded for unvested equity-based awards is based on their grant-date fair value. For the three months ended March 31, 2015, the Corporation recorded $35,000 compensation cost for equity-based awards that vested during the three months ended March 31, 2015. The Corporation has $435,000 unrecognized compensation cost related to non-vested equity-based awards granted under its stock incentive plan as of March 31, 2015, which is expected to be recognized over a weighted-average vesting period of approximately 3.4 years.

A summary of the status of the Corporation’s stock option plan as of March 31, 2015, and changes during the period then ended is presented below:

	Three months ended					Year ended
	March 31, 2015					December 31, 2014
				Weighted-					Weighted-
				average					average
				exercise					exercise
	Shares			price		Shares			price
Outstanding at beginning of period		758,947		$	12.67		369,939		$	12.80
Granted		-			-		400,000			12.48
Exercised		(261,728	)		13.01		(10,992	)		9.94
Forfeited		(72,000	)		12.48		-			-
Outstanding at end of period		425,219		$	12.50		758,947		$	12.67
Options exercisable at period-end		91,081		$	12.79		363,791		$	12.86
Options expected to be exercisable at year-end
Fair value of options granted					NA					1.56

The following information applies to options outstanding at March 31, 2015:

Number outstanding		425,219
Exercise price		$8.30 - $15.90
Weighted-average exercise price		$12.79
Weighted-average remaining contractual life	4.7 years

The expected term of options is based on evaluations of historical and expected future employee exercise behavior. The risk free interest rate is based upon the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based upon the historical volatility of the Corporation’s stock.

The fair value of each option granted is estimated on the date of grant using the modified Black-Scholes options-pricing model with the following weighted-average assumptions used for the 2014 grant, dividend yield of 2.88%; expected volatility of 14.25%; risk-free interest rates of 2.55%; and expected lives of 10 years. There were no grants during the three months ended March 31, 2015.

The effects of expensing stock options are reported in “cash provided by financing activities” in the Consolidated Statements of Cash Flows.

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Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

4.       Earnings Per Share

Basic earnings per share is computed based upon the weighted-average common shares outstanding during the period, less shares in the ESOP that are unallocated and not committed to be released plus shares in the ESOP that have been allocated.  Weighted-average common shares deemed outstanding gives effect to 158,950 and 168,300 unallocated shares held by the ESOP for the three months ended March 31, 2015 and 2014, respectively.

	For the three months ended
	March 31,
	2015		2014
Weighted-average common shares outstanding (basic)		6,573,652		6,653,983
Dilutive effect of assumed exercise of stock options		90,132		4,508
Weighted-average common shares outstanding (diluted)		6,663,784		6,658,491

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of federal income tax on earnings and computation of statutory corporate tax rate

	2015			2014
	(Dollars in thousands)
Federal income taxes at statutory rate of 34%	$	9		$	395
Increase (decrease) in taxes resulting primarily from:
Stock compensation		54			3
Nontaxable interest income		(5	)		(11	)
Cash surrender value of life insurance		(37	)		(39	)
Other		1			(2	)
Federal income taxes per financial statements	$	22		$	346

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Liquidity and Capital Resources (Tables)

3 Months Ended

Mar. 31, 2015

Liquidity and Capital Resources [Abstract]

Schedule of contractual obligation and commitment rolling year maturity

			Payments due by period
	Less		More than		More than		More
	than		1-3		3-5		than
	1 year		years		years		5 years		Total
	(In thousands)
Contractual obligations:
Advances from the Federal Home Loan Bank	$	384	$	10,802	$	2,671	$	-	$	13,857
Certificates of deposit		108,277		65,114		33,519		-		206,910
Lease obligations		121		167		119		129		536
Amount of loan commitments and expiration per period:
Commitments to originate one- to four-family loans		2,505		-		-		-		2,505
Home equity lines of credit		26,390		-		-		-		26,390
Commercial lines of credit		1,123		-		-		-		1,123
Undisbursed loans in process		3,357		-		-		-		3,357
Total contractual obligations	$	142,157	$	76,083	$	36,309	$	129	$	254,678

Schedule of compliance with regulatory capital

	As of March 31, 2015 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	78,195		14.0	%
Common Equity Tier 1 Capital		6.50	%	$	78,195		23.9	%
Tier 1 Risk-Based Capital		8.00	%	$	78,195		23.9	%
Total Capital		10.00	%	$	80,518		24.6	%

	As of December 31, 2014 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	77,752		13.9	%
Tier 1 Risk-Based Capital		6.00	%	$	77,752		24.5	%
Total Capital		10.00	%	$	79,988		25.2	%

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2015

Fair Value Of Financial Instruments [Abstract]

Fair Value of Financial Instruments

8.     Fair Value of Financial Instruments

Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value, is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity or contracts that convey or impose on an entity the contractual right or obligation to either receive or deliver cash for another financial instrument. These fair value estimates are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price for which an asset could be sold or liability could be settled. However, given there is no active market or observable market transactions identical to many of the Corporation’s financial instruments, estimates of many of these fair values are based upon observable inputs which are subjective in nature, involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimated values.

The following methods and assumptions were used by the Corporation in estimating its fair value disclosures for financial instruments at March 31, 2015:

Cash and cash equivalents:  The carrying amounts presented in the consolidated statements of financial condition for cash and cash equivalents are deemed to approximate fair value.

Investment and mortgage-backed securities:  For investment and mortgage-backed securities, fair value is deemed to equal the quoted market price.

Loans receivable:  The loan portfolio was segregated into categories with similar characteristics, such as one-to four-family residential, multi-family residential and commercial real estate.  These loan categories were further delineated into fixed-rate and adjustable-rate loans.  The fair values for the resultant loan categories were computed via discounted cash flow analysis, using current interest rates offered for loans with similar terms to borrowers of similar credit quality.  For loans on deposit accounts, fair values were deemed to equal the historic carrying values.  The historical carrying amount of accrued interest on loans is deemed to approximate fair value.

Federal Home Loan Bank stock:  The carrying amount presented in the consolidated statements of financial condition is deemed to approximate fair value.

 

Advances from the Federal Home Loan Bank:  The fair value of these advances is estimated using the rates currently offered for similar advances of similar remaining maturities or, when available, quoted market prices.

Advances by Borrowers for Taxes and Insurance:  The carrying amount of advances by borrowers for taxes and insurance is deemed to approximate fair value.

Commitments to extend credit:  For fixed-rate loan commitments, the fair value estimate considers the difference between current levels of interest rates and committed rates.  At March 31, 2015, the fair value of the derivative loan commitments was not material.

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Investment and Mortgage-backed Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment and Mortgage-backed Securities

6.     Investment and Mortgage-backed Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at March 31, 2015 and December 31, 2014 are shown below.

			March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	137,614	$	130	$	787	$	136,957
Municipal obligations		1,691		87		-		1,778
	$	139,305	$	217	$	787	$	138,735
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
			(In thousands)
Available for Sale:
U.S. Government agency securities	$	127,607	$	7	$	2,391	$	125,223
Municipal obligations		1,691		85		-		1,776
	$	129,298	$	92	$	2,391	$	126,999

The amortized cost of investment securities at March 31, 2015, by contractual term to maturity, are shown below.

	March 31,
	2015
	(In thousands)
One to five years	$	61,012
Five to ten years		43,333
More than ten years		34,960
	$	139,305

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of mortgage-backed securities at March 31, 2015 and December 31, 2014 are shown below.

	March 31, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	8,861	$	72	$	-	$	8,933
			December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
			(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	9,443	$	-	$	43	$	9,400

The amortized cost of mortgage-backed securities, including those designated as available for sale, at March 31, 2015, by contractual terms to maturity, are shown below.  Expected maturities will differ from contractual maturities because borrowers may generally prepay obligations without prepayment penalties. 

	March 31,
	2015
	(In thousands)
Due in one year or less	$	1,582
Due in more than one year through five years		4,435
Due in more than five years through ten years		2,365
Due in more than ten years		479
	$	8,861

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2015:

	Less than 12 months						12 months or longer								Total
Description of	Number of		Fair		Unrealized		Number of		Fair		Unrealized		Number of		Fair		Unrealized
securities	investments		value		losses		investments		value		losses		investments		value		losses
(Dollars in thousands)
U.S. Government agency securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787
Municipal obligations		-		-		-		-		-		-		-		-		-
Mortgage-backed securities		-		-		-		-		-		-		-		-		-
Total temporarily impaired securities		2	$	19,931	$	69		12	$	57,628	$	718		14	$	77,559	$	787

Management does not intend to sell any of the debt securities with an unrealized loss and does not believe that it is more likely than not that we will be required to sell a security in an unrealized loss position prior to a recovery in value.  The decline in the fair value is primarily due to an increase in market interest rates.  The fair values are expected to recover as securities approach maturity dates. The Corporation has evaluated these securities and has determined that the decline in their values is temporary.

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

7.     Income Taxes

The Corporation uses an asset and liability approach to accounting for income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets are recognized if it is more likely than not that a future benefit will be realized. The Corporation accounts for income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, which prescribes the recognition and measurement criteria related to tax positions taken or expected to be taken in a tax return.

The Corporation’s principal temporary differences between financial income and taxable income result mainly from different methods of accounting for Federal Home Loan Bank stock dividends, the general loan loss allowance, deferred compensation, stock benefit plans, fair value adjustments arising from the First Franklin Corporation acquisition.  The Corporation has approximately $2.4 million of net operating losses to carryforward for the next 18 years.  These losses are subject to the Internal Revenue Code Section 382 limitations which allow approximately $1.1 million of the losses on an annual basis to offset current year taxable income.

The Corporation recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.  For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.  At adoption date, January 1, 2007, the Corporation applied the standard to all tax positions for which the statute of limitations remained open and was not required to record any liability for unrecognized tax benefits as that date.  There have been no material changes in unrecognized tax benefits since January 1, 2007.  The known tax attributes which can influence the Corporation’s effective tax rate is the utilization of net operating loss carryforwards subject to the limitations under Internal Revenue Code Section 382.

The Corporation is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions.  Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Corporation is no longer subject to U.S. federal, state and local, or non U.S. income tax examinations by tax authorities for the years before 2011.

The Corporation will recognize, if applicable, interest accrued related to unrecognized tax liabilities in interest expense and penalties in operating expenses.

Federal income tax on earnings differs from that computed at the statutory corporate tax rate for the periods ended March 31, 2015 and 2014:

	2015			2014
	(Dollars in thousands)
Federal income taxes at statutory rate of 34%	$	9		$	395
Increase (decrease) in taxes resulting primarily from:
Stock compensation		54			3
Nontaxable interest income		(5	)		(11	)
Cash surrender value of life insurance		(37	)		(39	)
Other		1			(2	)
Federal income taxes per financial statements	$	22		$	346

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Disclosures about Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Assets and Liabilities

9.      Disclosures about Fair Value of Assets and Liabilities

The estimated fair values of the Company’s financial instruments are as follows:

	March 31, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	value		value		value		value
	(In thousands)
Financial assets
Cash and cash equivalents	$	32,553	$	32,553	$	42,439	$	42,439
Investment securities		138,735		138,735		126,999		126,999
Mortgage-backed securities		8,933		8,933		9,400		9,400
Loans receivable –
net and loans held for sale		338,035		356,059		337,095		358,500
Accrued interest receivable		1,489		1,489		1,801		1,801
Federal Home Loan Bank stock		8,651		8,651		8,651		8,651
	$	528,396	$	546,420	$	526,385	$	547,790
Financial liabilities
Deposits	$	455,523	$	455,059	$	451,784	$	451,165
Advances from the Federal Home Loan Bank		13,857		14,079		14,851		15,726
Accrued interest payable		56		56		58		58
Advances by borrowers for taxes and insurance		1,661		1,661		2,651		2,651
	$	471,097	$	470,855	$	469,344	$	469,600

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists for fair value measurements based upon the inputs to the valuation of an asset or liability.

Level 1Quoted prices in active markets for identical assets or liabilities.

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair value methods and assumptions are set forth below for each type of financial instrument.

Securities available for sale:  Fair value on available for sale securities was based upon a market approach. Securities which are fixed income instruments that are not quoted on an exchange, but are traded in active markets, are valued using prices obtained from our custodian, which used third party data service providers and classified as level 2 assets.  Management compares the fair values to another third party report for reasonableness.  Available for sale securities includes U.S. agency securities, municipal bonds and mortgage-backed agency securities.

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
Securities available for sale at March 31, 2015:
U.S. Government agency securities	$	136,957		-	$	136,957		-
Municipal obligations		1,778		-		1,778		-
Mortgage-backed securities		8,933		-		8,933		-
Securities available for sale at December 31, 2014:
U.S. Government agency securities	$	125,223		-	$	125,223		-
Municipal obligations		1,776		-		1,776		-
Mortgage-backed securities		9,400		-		9,400		-

Fair value measurements for certain assets and liabilities recognized in the accompanying statements of financial condition and measured at fair value on a nonrecurring basis:

			Quoted prices
			in active		Significant		Significant
			markets for		other		other
			identical		observable		unobservable
			assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
			(In thousands)
March 31, 2015:
Real estate acquired through foreclosure	$	1,642		-	$	1,642		-
Loans held for sale		1,648		-		1,648		-
Impaired loans		14,935		-		14,935		-
December 31, 2014:
Real estate acquired through foreclosure	$	1,815		-	$	1,815		-
Loans held for sale		1,332		-		1,332		-
Impaired loans		15,382		-		15,382		-

The following table presents fair value measurements for the Company’s financial instruments which are not recognized at fair value in the accompanying statements of financial position on a recurring or nonrecurring basis.

			Quoted prices		Significant		Significant
			in active		other		other
			markets for		observable		unobservable
			identical assets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2015:			(In thousands)
Financial assets:
Cash and cash equivalents	$	32,553	$	32,533	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		356,059		-		356,059		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,489		-		1,489		-
Financial liabilities:
Deposits		455,059		-		455,059		-
Advances from the Federal Home Loan Bank		14,079		-		14,079		-
Advances by borrowers for taxes and insurance		1,661		-		1,661		-
Accrued interest payable		56		-		56		-

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)
December 31, 2014:	(In thousands)
Financial assets:
Cash and cash equivalents	$	42,439	$	42,439	$	-	$	-
Mortgage-backed securities		-		-		-		-
Loans receivable - net		358,500		-		358,500		-
Federal Home Loan Bank stock		8,651		-		8,651		-
Accrued interest receivable		1,801		-		1,801		-
Financial liabilities:
Deposits		451,165		-		451,165		-
Advances from the Federal Home Loan Bank		15,726		-		15,726		-
Advances by borrowers for taxes and insurance		2,651		-		2,651		-
Accrued interest payable		58		-		58		-

XML

Stock Option Plan (Detail Textuals) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Apr. 23, 2013
Stock Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares for grants (in shares)	891,517
After-tax compensation cost for vested equity-based awards recognized	$ 35,000
Unrecognized pre-tax compensation cost for non vested equity based awards granted	$ 435,000
Weighted-average vesting period of unrecognized pre-tax compensation cost	3 years 4 months 24 days
Granted		400,000
Forfeited	72,000
2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares for grants (in shares)			467,500
Granted	400,000
Forfeited	72,000
2013 Equity Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted subject to vesting period (in shares)		400,000
Vesting period of options granted		5 years
Exchange ratio after adjustment in shares under plan		0.857%

XML

Financing Receivables - Carrying amount of purchased loans (Details 1) (Purchased Loans Receivable, USD $) In Thousands, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	$ 88,168		$ 91,087
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	60,962		63,508
Multi-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	3,238		3,316
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	23,847		24,144
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	121		119
Non-impaired Purchased Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	77,657
Non-impaired Purchased Loans | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	57,058	[1]
Non-impaired Purchased Loans | Multi-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	2,879
Non-impaired Purchased Loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans
Non-impaired Purchased Loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	17,600
Non-impaired Purchased Loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	120
Credit Impaired Purchased Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	10,511
Credit Impaired Purchased Loans | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	3,904	[1]
Credit Impaired Purchased Loans | Multi-family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	359
Credit Impaired Purchased Loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans
Credit Impaired Purchased Loans | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	6,247
Credit Impaired Purchased Loans | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchased loans	$ 1

[1] Includes home equity lines of credit

XML

Stock Option Plan (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of corporation's stock option plan activity

	Three months ended					Year ended
	March 31, 2015					December 31, 2014
				Weighted-					Weighted-
				average					average
				exercise					exercise
	Shares			price		Shares			price
Outstanding at beginning of period		758,947		$	12.67		369,939		$	12.80
Granted		-			-		400,000			12.48
Exercised		(261,728	)		13.01		(10,992	)		9.94
Forfeited		(72,000	)		12.48		-			-
Outstanding at end of period		425,219		$	12.50		758,947		$	12.67
Options exercisable at period-end		91,081		$	12.79		363,791		$	12.86
Options expected to be exercisable at year-end
Fair value of options granted					NA					1.56

Schedule of options outstanding

Number outstanding		425,219
Exercise price		$8.30 - $15.90
Weighted-average exercise price		$12.79
Weighted-average remaining contractual life	4.7 years

XML

Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Schedule of financing receivable recorded investment

	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
	(In thousands)
Purchased loans	$	62,177		$	3,264		$	-		$	24,253		$	132		$	89,826
Fair value discount - Credit impaired purchased loans		(965	)		(2	)		-			(308	)		-			(1,275	)
Fair value discount – Non-impaired purchased loans		(250	)		(24	)		-			(98	)		(11	)		(383	)
Purchased loans book value(3)		60,962			3,238			-			23,847			121			88,168
Originated loans (1)		168,267			16,515			8,733	(2)		60,278			807			254,600
Ending balance	$	229,229		$	19,753		$	8,733		$	84,125		$	928		$	342,768

(1) Includes loans held for sale

(2) Before consideration of undisbursed loans-in-process

(3) Loans purchased in acquisition of First Franklin

Schedule of credit-impaired purchased loans and non-impaired purchased loans

			Credit
	Non-impaired		Impaired
	Purchased Loans		Purchased Loans
	(In thousands)
One-to-four family residential (1)	$	57,058	$	3,904
Multi-family residential		2,879		359
Construction		-		-
Commercial		17,600		6,247
Consumer		120		1
Total	$	77,657	$	10,511

(1) Includes home equity lines of credit

Schedule of accretable discount related to acquired credit impaired loans

	(In thousands)
Accretable discount at December 31, 2014:	$	6,205
Reclass from nonaccretable difference to accretable discount		-
Less transferred to other real estate owned		-
Less accretion		(185	)
Accretable discount at March 31, 2015:	$	6,020

Schedule of allowance for credit losses activity

	March 31, 2015
	One-to four
	Family			Multi-family
	Residential			Residential		Construction		Commercial		Consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	1,813		$	209	$	7	$	199	$	8		$	2,236
Provision		(1	)		25		3		117		(1	)		143
Charge-offs		(86	)		-		-		-		-			(86	)
Recoveries		27			-		-		2		1			30
Ending balance	$	1,753		$	234	$	10	$	318	$	8		$	2,323
Originated loans:
Individually evaluated for impairment	$	170		$	-	$	-	$	7	$	-		$	177
Purchased loans:
Individually evaluated for impairment	$	133		$	-	$	-	$	122	$	-		$	255
Originated Loans:
Collectively evaluated for impairment	$	1,093		$	234	$	10	$	148	$	8		$	1,493
Purchased loans:
Loans acquired with deteriorated credit quality	$	357		$	-	$	-	$	41	$	-		$	398
Loans receivable:
Ending balance	$	229,229		$	19,753	$	8,733	$	84,125	$	928		$	342,768
Ending balance:
Individually evaluated for impairment	$	3,774		$	96	$	-	$	554	$	-		$	4,424
Ending balance:
Collectively evaluated for impairment	$	221,551		$	19,298	$	8,733	$	77,324	$	927		$	327,833
Ending balance:
Loans acquired with deteriorated credit quality	$	3,904		$	359	$	-	$	6,247	$	1		$	10,511

	December 31, 2014
	One-to four
	Family				Multi-family
	Residential				Residential		Construction			Commercial			Consumer			Total
		(In thousands)
Allowance for loan losses:
Beginning balance		$	1,352		$	194	$	9		$	131		$	11		$	1,697
Provision			947			15		(2	)		64			-			1,024
Charge-offs			(520	)		-		-			(39	)		(3	)		(562	)
Recoveries			34			-		-			43			-			77
Ending balance		$	1,813		$	209	$	7		$	199		$	8		$	2,236
Originated loans:
Individually evaluated for impairment		$	238		$	-	$	-		$	7		$	-		$	245
Purchased loans:
Individually evaluated for impairment		$	135		$	-	$	-		$	-		$	-		$	135
Originated Loans:
Collectively evaluated for impairment		$	1,005		$	209	$	7		$	151		$	8		$	1,380
Purchased loans:
Loans acquired with deteriorated credit quality		$	435		$	-	$	-		$	41		$	-		$	476
Loans receivable:
Ending balance		$	231,626		$	20,501	$	8,327		$	81,357		$	921		$	342,732
Ending balance:
Individually evaluated for impairment		$	3,750		$	95	$	-		$	817		$	-		$	4,662
Ending balance:
Collectively evaluated for impairment		$	223,846		$	20,046	$	8,327		$	74,211		$	920		$	327,350
Ending balance:
Loans acquired with deteriorated credit quality		$	4,030		$	360	$	-		$	6,329		$	1		$	10,720

Schedule of credit risk

	Originated Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	166,305	$	16,419	$	8,733	$	59,264	$	807	$	251,528
Special mention		-		-		-		-		-		-
Substandard		1,962		96		-		1,014		-		3,072
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,267	$	16,515	$	8,733	$	60,278	$	807	$	254,600
	Originated Loans at December 31, 2014
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	165,711	$	17,090	$	8,327	$	56,191	$	802	$	248,121
Special mention		-		-		-		-		-		-
Substandard		2,407		95		-		1,022		-		3,524
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	168,118	$	17,185	$	8,327	$	57,213	$	802	$	251,645
	Purchased Loans at March 31, 2015
	One-to four
	Family		Multi-family
	Residential		Residential		Construction		Commercial		Consumer		Total
	(In thousands)
Grade:
Pass	$	58,826	$	3,238	$	-	$	20,402	$	20	$	82,486
Special mention		-		-		-		-		-		-
Substandard		2,136		-		-		3,445		101		5,682
Doubtful		-		-		-		-		-		-
Loss		-		-		-		-		-		-
Total	$	60,962	$	3,238	$	-	$	23,847	$	121	$	88,168

	Purchased Loans at December 31, 2014
	One-to four
	Family			Multi-family
	Residential			Residential			Construction			Commercial			Consumer			Total
		(In thousands)
Grade:
Pass		$	60,918		$	3,316		$	-		$	20,441		$	18		$	84,693
Special mention			-			-			-			-			-			-
Substandard			2,590			-			-			3,703			101			6,394
Doubtful			-			-			-			-			-			-
Loss			-			-			-			-			-			-
Total		$	63,508		$	3,316		$	-		$	24,144		$	119		$	91,087

Schedule of loans by delinquency, nonaccrual status and impaired loans

	Age Analysis of Past Due Originated Loans Receivable  As of March 31, 2015
	30-89 Days Past Due		Greater than 90 Days		Total Past Due		Current & Accruing		Nonaccrual		Total Loan Receivables		Recorded Investment 90 Days and Accruing
	(In thousands)
Real Estate:
1-4 family Residential	$	1,533	$	875	$	2,408	$	164,880	$	1,854	$	168,267	$	-
Multi-family Residential		192		96		288		16,227		96		16,515		-
Construction		-		-		-		8,733		-		8,733		-
Commercial		-		144		144		60,116		162		60,278		-
Consumer		-		-		-		807		-		807		-
Total	$	1,725	$	1,115	$	2,840	$	250,763	$	2,112	$	254,600	$	-

	Age Analysis of Past Due Originated Loans Receivable As of December 31, 2014
													Recorded
													Investment
	30-89 Days		90 Days		Total Past			Current			Total Loan		90 Days and
	Past Due		or more		Due		& Accruing		Nonaccrual		Receivables		Accruing
		(In thousands)
Real Estate:
1-4 family Residential	$	999	$	1,317	$	2,316	$	165,088	$	2,031	$	168,118	$	-
Multi-family		-		95		95		17,090		95		17,185		-
Construction		-		-		-		8,327		-		8,327		-
Commercial		-		143		143		57,051		162		57,213		-
Consumer		-		-		-		802		-		802		-
Total	$	999	$	1,555	$	2,554	$	248,358	$	2,288	$	251,645	$	-

		Age Analysis of Past Due Purchased Loans Receivable As of March 31, 2015
																			Recorded
																			Investment
		30-89 Days		Greater than			Total Past			Current &						Total Loan			90 Days and
		Past Due		90 Days			Due			Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	2,089		$	1,721		$	3,810		$	56,246		$	2,627		$	60,962		$	-
Multi-family Residential			-			-			-			2,976			262			3,238			-
Construction			-			-			-			-			-			-			-
Commercial			131			619			750			23,324			392			23,847			-
Consumer			-			-			-			121			-			121			-
Total		$	2,220		$	2,340		$	4,560		$	82,667		$	3,281		$	88,168		$	-

		Age Analysis of Past Due Purchased Loans Receivable As of December 31, 2014
																			Recorded
																			Investment
	30-89 Days			90 Days			Total Past			Current						Total Loan			90 Days and
	Past Due			or More			Due			& Accruing			Nonaccrual			Receivables			Accruing
	(In thousands)
Real Estate:
1-4 family Residential		$	1,846		$	1,737		$	3,583		$	59,518		$	2,144		$	63,508		$	-
Multi-family			-			-			-			3,316			-			3,316			-
Construction			-			-			-			-			-			-			-
Commercial			187			619			806			23,302			655			24,144			-
Consumer			-			-			-			119			-			119			-
Total		$	2,033		$	2,356		$	4,389		$	86,255		$	2,799		$	91,087		$	-

Schedule of impaired loans

	Impaired Loans
	As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a fair value discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,851	$	3,851	$	-	$	3,914	$	47
Multi-family		359		359		-		360		5
Construction		-		-		-		-		-
Commercial		6,247		6,247		-		6,288		93
Consumer		1		1		-		1		-
Total	$	10,458	$	10,458	$	-	$	10,563	$	145
Purchased loans with no fair value discount and no related allowance recorded:
Real Estate:
1-4 family	$	53	$	53	$	24	$	53	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	24	$	53	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,319	$	1,319	$	-	$	1,200	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		328		-
Consumer		-		-		-		-		-
Total	$	1,319	$	1,319	$	-	$	1,528	$	-
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	601	$	601	$	109	$	620	$	-
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		392		392		122		196		-
Consumer		-		-		-		-		-
Total	$	993	$	993	$	231	$	816	$	-

			Impaired Loans
			As of March 31, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,357	$	1,357	$	-	$	1,361	$	-
Multi-family		96		96		-		96		-
Construction		-		-		-		-		-
Commercial		115		115		-		115		-
Consumer		-		-		-		-		-
Total	$	1,568	$	1,568	$	-	$	1,572	$	-
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	497	$	497	$	170	$	582	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		47		-
Consumer		-		-		-		-		-
Total	$	544	$	544	$	177	$	629	$	-
Total:
Real Estate:
1-4 family
Residential	$	7,678	$	7,678	$	303	$	7,730	$	47
Multi-family		455		455		-		456		5
Construction		-		-		-		-		-
Commercial		6,801		6,801		129		6,974		93
Consumer		1		1		-		1		-
Total	$	14,935	$	14,935	$	432	$	15,161	$	145

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Purchased loans with a credit quality discount and no related allowance recorded:
Real Estate:
1-4 family
Residential	$	3,977	$	3,977	$	-	$	3,578	$	61
Multi-family		360		360		-		708
Construction		-		-		-		-		-
Commercial		6,329		6,329		-		6,460		286
Consumer		1		1		-		1		-
Total	$	10,667	$	10,667	$	-	$	10,747	$	347
Purchased loans with a credit quality discount and an allowance recorded:
Real Estate:
1-4 family
Residential	$	53	$	53	$	19	$	16	$	-
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	53	$	53	$	19	$	16	$	-
Purchased loans with no credit quality discount and no related allowance recorded:
Real Estate:
1-4 family	$	1,080	$	1,080	$	-	$	1,863	$	23
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		655		655		-		328		10
Consumer		-		-		-		8		-
Total	$	1,735	$	1,735	$	-	$	2,199	$	33
Purchased loans with an allowance recorded:
Real Estate:
1-4 family	$	639	$	639	$	113	$	263	$	12
Residential
Multi-family
Residential		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		-		-		-		-		-
Consumer		-		-		-		-		-
Total	$	639	$	639	$	113	$	263	$	12

			Impaired Loans
			As of December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Originated loans with no related allowance recorded
Real Estate:
1-4 family
Residential	$	1,365	$	1,365	$	-	$	1,786	$	30
Multi-family		95		95		-		95		-
Construction		-		-		-		-		-
Commercial		115		115		-		397		7
Consumer		-		-		-		-		-
Total	$	1,575	$	1,575	$	-	$	2,278	$	37
Originated loans with an allowance recorded:
Real Estate:
1-4 family
Residential	$	666	$	666	$	238	$	214	$	9
Multi-family		-		-		-		-		-
Construction		-		-		-		-		-
Commercial		47		47		7		20		-
Consumer		-		-		-		-		-
Total	$	713	$	713	$	245	$	234	$	9
Total:
Real Estate:
1-4 family
Residential	$	7,780	$	7,780	$	370	$	7,720	$	135
Multi-family		455		455		-		803		-
Construction		-		-		-		-		-
Commercial		7,146		7,146		7		7,205		303
Consumer		1		1		-		9		-
Total	$	15,382	$	15,382	$	377	$	15,737	$	438

Schedule of modifications of troubled debt restructurings

	Modifications
	As of March 31, 2015
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		-	$	-	$	-
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		-		-		-
Consumer		-		-		-
	Modifications
	For the three months ended March 31, 2015
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		-	$	-
Multi-family Residential		-		-
Construction		-		-
Commercial		-		-
Consumer		-		-

Modifications

	Modifications
	As of December 31, 2014
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
			(In thousands)
Troubled Debt Restructurings
Real Estate:
1-4 Family Residential		8	$	2,529	$	2,529
Multi-family Residential		-		-		-
Construction		-		-		-
Commercial		1		100		100
Consumer		-		-		-
	Number of		Recorded
	Contracts		Investment
	(In thousands)
Troubled Debt Restructurings
That Subsequently Defaulted
Real Estate:
1-4 Family Residential		5	$	724
Multi-family Residential		-		-
Construction		-		-
Commercial		1		99
Consumer		-		-

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Intangible Assets (Detail Textuals) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 10,309,000	$ 10,309,000
Carrying amount of core deposit, intangible	1,300,000
Accumulated amortization of core deposit intangible	941,000
First Franklin and Franklin Savings
Finite-Lived Intangible Assets [Line Items]
Goodwill and intangible assets			$ 11,600,000

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Income Taxes - Federal income tax on earnings differs from that computed at statutory corporate tax rate (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Federal income taxes at statutory rate of 34%	$ 9	$ 395
Increase (decrease) in taxes resulting primarily from:
Stock compensation	54	3
Nontaxable interest income	(5)	(11)
Cash surrender value of life insurance	(37)	(39)
Other	1	(2)
Total federal income taxes	$ 22	$ 346

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement Of Income and Comprehensive Income [Abstract]
Net earnings for the period	$ 1	$ 815
Other comprehensive loss, net of related tax expense:
Unrealized holding gains on securities during the period, net of tax expense of $627 and $1,023 for the periods ended March 31, 2015 and 2014, respectively	1,217	1,985
Comprehensive income	1,218	2,800
Accumulated comprehensive loss	$ (329)	$ (5,244)

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Liquidity and Capital Resources

3 Months Ended

Mar. 31, 2015

Liquidity and Capital Resources [Abstract]

Liquidity and Capital Resources

3. Liquidity and Capital Resources

Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, scheduled amortization and prepayments of loan principal and mortgage-backed securities, maturities and calls of securities and funds provided by our operations. In addition, we may borrow from the Federal Home Loan Bank of Cincinnati. At March 31, 2015 and December 31, 2014, we had $13.9 million and $14.9 million, respectively, in outstanding borrowings from the Federal Home Loan Bank of Cincinnati and had the capacity to increase such borrowings at those dates by approximately $156.3 million and $132.1 million, respectively.

Loan repayments and maturing securities are a relatively predictable source of funds. However, deposit flows, calls of securities and prepayments of loans and mortgage-backed securities are strongly influenced by interest rates, general and local economic conditions and competition in the marketplace. These factors reduce the predictability of these sources of funds.

Our primary investing activities are the origination of one- to four-family real estate loans, commercial real estate, construction and consumer loans, and the purchase of securities. For the three months ended March 31, 2015, loan originations totaled $24.4 million, compared to $15.2 million for the three months ended March 31, 2014.

Total deposits increased $3.7 million during the three months ended March 31, 2015, total deposits decreased $2.7 million during the three months ended March 31, 2014, respectively. Deposit flows are affected by the level of interest rates, the interest rates and products offered by competitors and other factors.

The following table sets forth information regarding the Corporation’s obligations and commitments to make future payments under contracts as of March 31, 2015.

			Payments due by period
	Less		More than		More than		More
	than		1-3		3-5		than
	1 year		years		years		5 years		Total
	(In thousands)
Contractual obligations:
Advances from the Federal Home Loan Bank	$	384	$	10,802	$	2,671	$	-	$	13,857
Certificates of deposit		108,277		65,114		33,519		-		206,910
Lease obligations		121		167		119		129		536
Amount of loan commitments and expiration per period:
Commitments to originate one- to four-family loans		2,505		-		-		-		2,505
Home equity lines of credit		26,390		-		-		-		26,390
Commercial lines of credit		1,123		-		-		-		1,123
Undisbursed loans in process		3,357		-		-		-		3,357
Total contractual obligations	$	142,157	$	76,083	$	36,309	$	129	$	254,678

We are committed to maintaining a strong liquidity position and we monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. Based on our deposit retention experience and current pricing strategy, we anticipate that a significant portion of maturing time deposits will be retained.

The following sets forth our regulatory capital position, compared to requirements to be considered “well-capitalized” as of March 31, 2015 under new regulatory capital requirements, and prior requirements as of December 31, 2014.

	As of March 31, 2015 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	78,195		14.0	%
Common Equity Tier 1 Capital		6.50	%	$	78,195		23.9	%
Tier 1 Risk-Based Capital		8.00	%	$	78,195		23.9	%
Total Capital		10.00	%	$	80,518		24.6	%

	As of December 31, 2014 (Dollars in Thousands)
	Required Ratio			Actual Amount		Actual Ratio
Tier 1 Leverage		5.00	%	$	77,752		13.9	%
Tier 1 Risk-Based Capital		6.00	%	$	77,752		24.5	%
Total Capital		10.00	%	$	79,988		25.2	%

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Liquidity and Capital Resources - Information regarding Corporation's obligations and commitments to make future payments under contracts (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Payments due by period
Less than 1 year	$ 142,157
More than 1-3 years	76,083
More than 3-5 years	36,309
More than 5 years	129
Total	254,678
Advances from the Federal Home Loan Bank
Payments due by period
Less than 1 year	384
More than 1-3 years	10,802
More than 3-5 years	2,671
More than 5 years
Total	13,857
Certificates of deposit
Payments due by period
Less than 1 year	108,277
More than 1-3 years	65,114
More than 3-5 years	33,519
More than 5 years
Total	206,910
Lease obligations
Payments due by period
Less than 1 year	121
More than 1-3 years	167
More than 3-5 years	119
More than 5 years	129
Total	536
Commitments to originate one- to four-family loans
Payments due by period
Less than 1 year	2,505
More than 1-3 years
More than 3-5 years
More than 5 years
Total	2,505
Home equity lines of credit
Payments due by period
Less than 1 year	26,390
More than 1-3 years
More than 3-5 years
More than 5 years
Total	26,390
Commercial lines of credit
Payments due by period
Less than 1 year	1,123
More than 1-3 years
More than 3-5 years
More than 5 years
Total	1,123
Undisbursed loans in process
Payments due by period
Less than 1 year	3,357
More than 1-3 years
More than 3-5 years
More than 5 years
Total	$ 3,357

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Investment and Mortgage-backed Securities - Amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of mortgage-backed securities (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available for sale:
Amortized cost	$ 139,305	$ 129,298
Gross unrealized holding gains	217	92
Gross unrealized holding losses	787	2,391
Estimated fair value	138,735	126,999
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates
Available for sale:
Amortized cost	8,861	9,443
Gross unrealized holding gains	72
Gross unrealized holding losses		43
Estimated fair value	$ 8,933	$ 9,400

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Schedule of weighted average number of shares

	For the three months ended
	March 31,
	2015		2014
Weighted-average common shares outstanding (basic)		6,573,652		6,653,983
Dilutive effect of assumed exercise of stock options		90,132		4,508
Weighted-average common shares outstanding (diluted)		6,663,784		6,658,491