----

----

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

| For the quarterly period ended  | September 30, 2011  |   |
|--------------------------------------|--------------------------|--------|

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

| CHEVIOT FINANCIAL CORP.                           |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Federal                         |                          | 56-2423720 |   |
|---------------------------------|-------------------------------|------------|--------|
| (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)                 |

----

|       |   |                                                                                        |   | 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 |   | 35     |
|       |   |                                                                                        |   |   |
|       |   | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 45     |
|       |   |                                                                                        |   |   |
|       |   | Controls and Procedures                                                                     |   | 45     |
|       |   |                                                                                        |   |   |
| PART II    | -      | OTHER INFORMATION                                                                           |   | 46     |
|       |   |                                                                                        |   |   |
| SIGNATURES |   |                                                                                        |   | 48     |

----

|                                                                                                                                                                |   | September 30, |    |   | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|
|                                                                                                                                                                |   | 2011          |    |   | 2010         |   |
|                                                                                                                                                                |   | (Unaudited)   |    |   |         |   |
|                                                                                                                                                                |   |          |    |   |         |   |
| ASSETS                                                                                                                                                              |   |          |    |   |         |   |   |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Cash and due from banks                                                                                                                                             |   | $             | 8,884   |   |         | $      | 5,776 |   |
| Federal funds sold                                                                                                                                                  |   |          | 20,933  |   |         |   | 5,924 |   |
| Interest-earning deposits in other financial institutions                                                                                                           |   |          | 15,384  |   |         |   | 6,449 |   |
| Cash and cash equivalents                                                                                                                                           |   |          | 45,201  |   |         |   | 18,149 |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Investment securities available for sale - at fair value                                                                                                            |   |          | 90,748  |   |         |   | 88,382 |   |
| Mortgage-backed securities available for sale - at fair value                                                                                                       |   |          | 8,015   |   |         |   | 4,279 |   |
| Mortgage-backed securities held to maturity - at cost, approximate market value of $4,498 and $4,916 at September 30, 2011 and December 31, 2010, respectively |   |          | 4,340   |   |         |   | 4,779 |   |
| Loans receivable - net                                                                                                                                              |   |          | 394,915 |   |         |   | 220,998 |   |
| Loans held for sale - at lower of cost or market                                                                                                                    |   |          | 2,545   |   |         |   | 4,440 |   |
| Real estate acquired through foreclosure - net                                                                                                                      |   |          | 4,190   |   |         |   | 2,007 |   |
| Office premises and equipment - at depreciated cost                                                                                                                 |   |          | 10,063  |   |         |   | 4,610 |   |
| Federal Home Loan Bank stock - at cost                                                                                                                              |   |          | 8,366   |   |         |   | 3,375 |   |
| Accrued interest receivable on loans                                                                                                                                |   |          | 1,661   |   |         |   | 925 |   |
| Accrued interest receivable on mortgage-backed securities                                                                                                           |   |          | 29      |   |         |   | 23 |   |
| Accrued interest receivable on investments and interest-earning deposits                                                                                            |   |          | 421     |   |         |   | 392 |   |
| Goodwill                                                                                                                                                            |   |          | 10,309  |   |         |   | - |   |
| Core deposit intangible - net                                                                                                                                       |   |          | 1,118   |   |         |   | - |   |
| Prepaid expenses and other assets                                                                                                                                   |   |          | 4,312   |   |         |   | 1,510 |   |
| Bank-owned life insurance                                                                                                                                           |   |          | 10,246  |   |         |   | 3,791 |   |
| Prepaid federal income taxes                                                                                                                                        |   |          | 885     |   |         |   | 409 |   |
| Deferred federal income taxes                                                                                                                                       |   |          | 3,152   |   |         |   | - |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Total assets                                                                                                                                                        |   | $             | 600,516 |   |         | $      | 358,069 |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                          |   |          |    |   |         |   |   |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Deposits                                                                                                                                                            |   | $             | 480,390 |   |         | $      | 257,852 |   |
| Advances from the Federal Home Loan Bank                                                                                                                            |   |          | 42,024  |   |         |   | 27,300 |   |
| Advances by borrowers for taxes and insurance                                                                                                                       |   |          | 1,772   |   |         |   | 1,440 |   |
| Accrued interest payable                                                                                                                                            |   |          | 163     |   |         |   | 99 |   |
| Accounts payable and other liabilities                                                                                                                              |   |          | 4,037   |   |         |   | 1,955 |   |
| Deferred federal income taxes                                                                                                                                       |   |          | -       |   |         |   | 4 |   |
| Total liabilities                                                                                                                                                   |   |          | 528,386 |   |         |   | 288,650 |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Commitments and contingencies                                                                                                                                       |   |          |    |   |         |   |   |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Shareholders’ equity                                                                                                                                          |   |          |    |   |         |   |   |   |
| Preferred stock - authorized 5,000,000 shares, $.01 par value; none issued                                                                                          |   |          | -       |   |         |   | - |   |
| Common stock - authorized 30,000,000 shares, $.01 par value; 9,918,751 shares issued at September 30, 2011 and December 31, 2010                               |   |          | 99      |   |         |   | 99 |   |
| Additional paid-in capital                                                                                                                                          |   |          | 43,870  |   |         |   | 43,878 |   |
| Shares acquired by stock benefit plans                                                                                                                              |   |          | (1,270  | )      |         |   | (1,302 | ) |
| Treasury stock - at cost, 1,053,843 shares at September 30, 2011 and December 31, 2010                                                                              |   |          | (12,859 | )      |         |   | (12,860 | ) |
| Retained earnings - restricted                                                                                                                                      |   |          | 41,855  |   |         |   | 40,655 |   |
| Accumulated comprehensive income (loss), unrealized gains (losses) on securities available for sale, net of related tax effects                                     |   |          | 435     |   |         |   | (1,051 | ) |
| Total shareholders’ equity                                                                                                                                    |   |          | 72,130  |   |         |   | 69,419 |   |
|                                                                                                                                                                |   |          |    |   |         |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                    |   | $             | 600,516 |   |         | $      | 358,069 |   |

----

|                                                            |   | Nine months ended |   |   | Three months ended |   |
|-----------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                                            |   | September 30,     |   |   | September 30,      |   |
|                                                            |   | 2011              |   |   | 2010               |   |   | 2011 |   |   | 2010 |   |
|                                                            |   | (Unaudited)       |   |
| Interest income                                                 |   |              |   |   |               |   |   |   |   |   |   |   |
| Loans                                                           |   | $                 | 14,236 |   |               | $      | 10,214 |   |   | $ | 5,384 |   |   | $ | 3,301 |   |
| Mortgage-backed securities                                      |   |              | 208    |   |               |   | 228 |   |   |   | 70 |   |   |   | 66 |   |
| Investment securities                                           |   |              | 1,624  |   |               |   | 1,285 |   |   |   | 591 |   |   |   | 436 |   |
| Interest-earning deposits and other                             |   |              | 222    |   |               |   | 115 |   |   |   | 85 |   |   |   | 38 |   |
| Total interest income                                           |   |              | 16,290 |   |               |   | 11,842 |   |   |   | 6,130 |   |   |   | 3,841 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                        |   |              | 3,503  |   |               |   | 2,629 |   |   |   | 1,286 |   |   |   | 844 |   |
| Borrowings                                                      |   |              | 912    |   |               |   | 1,004 |   |   |   | 297 |   |   |   | 286 |   |
| Total interest expense                                          |   |              | 4,415  |   |               |   | 3,633 |   |   |   | 1,583 |   |   |   | 1,130 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                             |   |              | 11,875 |   |               |   | 8,209 |   |   |   | 4,547 |   |   |   | 2,711 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Provision for losses on loans                                   |   |              | 400    |   |               |   | 250 |   |   |   | 200 |   |   |   | 150 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income after provision for losses on loans         |   |              | 11,475 |   |               |   | 7,959 |   |   |   | 4,347 |   |   |   | 2,561 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                          |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Rental                                                          |   |              | 91     |   |               |   | 48 |   |   |   | 33 |   |   |   | 17 |   |
| Gain on sale of loans                                           |   |              | 429    |   |               |   | 389 |   |   |   | 204 |   |   |   | 306 |   |
| Gain (loss) on sale of real estate acquired through foreclosure |   |              | 75     |   |               |   | (23 | ) |   |   | (47 | ) |   |   | (1 | ) |
| Earnings on bank-owned life insurance                           |   |              | 208    |   |               |   | 104 |   |   |   | 84 |   |   |   | 35 |   |
| Other operating                                                 |   |              | 1,086  |   |               |   | 324 |   |   |   | 428 |   |   |   | 116 |   |
| Total other income                                              |   |              | 1,889  |   |               |   | 842 |   |   |   | 702 |   |   |   | 473 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| General, administrative and other expense                       |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Employee compensation and benefits                              |   |              | 4,774  |   |               |   | 3,286 |   |   |   | 1,652 |   |   |   | 1,034 |   |
| Occupancy and equipment                                         |   |              | 948    |   |               |   | 503 |   |   |   | 413 |   |   |   | 180 |   |
| Property, payroll and other taxes                               |   |              | 892    |   |               |   | 732 |   |   |   | 294 |   |   |   | 233 |   |
| Data processing                                                 |   |              | 381    |   |               |   | 175 |   |   |   | 161 |   |   |   | 63 |   |
| Legal and professional                                          |   |              | 712    |   |               |   | 469 |   |   |   | 170 |   |   |   | 233 |   |
| Advertising                                                     |   |              | 367    |   |               |   | 150 |   |   |   | 87 |   |   |   | 50 |   |
| FDIC expense                                                    |   |              | 481    |   |               |   | 214 |   |   |   | 177 |   |   |   | 67 |   |
| Other operating                                                 |   |              | 1,651  |   |               |   | 596 |   |   |   | 682 |   |   |   | 201 |   |
| Total general, administrative and other expense                 |   |              | 10,206 |   |               |   | 6,125 |   |   |   | 3,636 |   |   |   | 2,061 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings before income taxes                                    |   |              | 3,158  |   |               |   | 2,676 |   |   |   | 1,413 |   |   |   | 973 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Federal income taxes                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                         |   |              | (243   | )      |               |   | 785 |   |   |   | 168 |   |   |   | 254 |   |
| Deferred                                                        |   |              | 977    |   |               |   | 127 |   |   |   | 276 |   |   |   | 36 |   |
| Total federal income taxes                                      |   |              | 734    |   |               |   | 912 |   |   |   | 444 |   |   |   | 290 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| NET EARNINGS                                                    |   | $                 | 2,424  |   |               | $      | 1,764 |   |   | $ | 969 |   |   | $ | 683 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| EARNINGS PER SHARE                                              |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   | $                 | .28    |   |               | $      | .20 |   |   | $ | .11 |   |   | $ | .08 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                         |   | $                 | .28    |   |               | $      | .20 |   |   | $ | .11 |   |   | $ | .08 |   |
|                                                            |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Dividends per common share                                      |   | $                 | .36    |   |               | $      | .33 |   |   | $ | .12 |   |   | $ | .11 |   |

----

|                                                                                                                                                                                                                                                               |   | For the nine months |   |   | For the three months |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                               |   | ended September 30, |   |   | ended September 30,  |   |
|                                                                                                                                                                                                                                                               |   | 2011                |   |   | 2010                 |   |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                                                                                                               |   | (Unaudited)         |   |
| Net earnings for the period                                                                                                                                                                                                                                        |   | $                   | 2,424  |   |                 | $      | 1,764 |   |   | $ | 969 |   |   | $ | 683 |   |
| Other comprehensive income, net of tax expense:                                                                                                                                                                                                                    |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities during the period, net of tax expense of $766 and $369 for the nine months ended September 30, 2011 and 2010, respectively, and $120 and $53 for the three months ended September 30, 2011 and 2010, respectively |   |                | 1,486  |   |                 |   | 717 |   |   |   | 232 |   |   |   | 102 |   |
|                                                                                                                                                                                                                                                               |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                                                                                                                                               |   | $                   | 3,910  |   |                 | $      | 2,481 |   |   | $ | 1,201 |   |   | $ | 785 |   |
|                                                                                                                                                                                                                                                               |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated comprehensive income                                                                                                                                                                                                                                   |   | $                   | 435    |   |                 | $      | 337 |   |   | $ | 435 |   |   | $ | 337 |   |
|                                                                                                                                                                                                                                                               |   |                |   |   |                 |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                     |        | 2011   |    |   | 2010   |   |
|------------------------------------------------------------------------------------------|-------------|--------|---------|--------|--------|--------|
|                                                                                     | (Unaudited) |
| Cash flows from operating activities:                                                    |        |   |    |   |   |   |
| Net earnings for the period                                                              |        | $      | 2,424   |   |   | $      | 1,764 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities:      |        |   |    |   |   |   |   |   |
| Amortization of premiums and discounts on investment and mortgage-backed securities, net |        |   | (81     | )      |   |   | 21 |   |
| Depreciation                                                                             |        |   | 387     |   |   |   | 240 |   |
| Amortization expense related to stock benefit plans                                      |        |   | 10      |   |   |   | 380 |   |
| Amortization of deferred loan origination fees - net                                     |        |   | 88      |   |   |   | 39 |   |
| Amortization of intangible assets                                                        |        |   | 180     |   |   |   | - |   |
| Amortization of fair value adjustments                                                   |        |   | (1,267  | )      |   |   | - |   |
| Proceeds from sale of loans in the secondary market                                      |        |   | 37,186  |   |   |   | 15,354 |   |
| Loans originated for sale in the secondary market                                        |        |   | (34,897 | )      |   |   | (18,104 | ) |
| Gain on sale of loans                                                                    |        |   | (429    | )      |   |   | (389 | ) |
| (Gain) loss on sale of real estate acquired through foreclosure                          |        |   | (75     | )      |   |   | 23 |   |
| Impairment on real estate acquired through foreclosure                                   |        |   | 358     |   |   |   | 102 |   |
| Federal Home Loan Bank stock dividends                                                   |        |   | -       |   |   |   | (6 | ) |
| Earnings on bank-owned life insurance                                                    |        |   | (208    | )      |   |   | (104 | ) |
| Provision for losses on loans                                                            |        |   | 400     |   |   |   | 250 |   |
| Increase (decrease) in cash, net of acquisition, due to changes in:                      |        |   |    |   |   |   |   |   |
| Accrued interest receivable on loans                                                     |        |   | (20     | )      |   |   | 64 |   |
| Accrued interest receivable on mortgage-backed securities                                |        |   | 18      |   |   |   | 10 |   |
| Accrued interest receivable on investments and interest-earning deposits                 |        |   | 100     |   |   |   | (10 | ) |
| Prepaid expenses and other assets                                                        |        |   | 267     |   |   |   | (45 | ) |
| Accrued interest payable                                                                 |        |   | (692    | )      |   |   | (36 | ) |
| Accounts payable and other liabilities                                                   |        |   | (2,516  | )      |   |   | 35 |   |
| Federal income taxes (benefits)                                                          |        |   |    |   |   |   |   |   |
| Current                                                                                  |        |   | 560     |   |   |   | (110 | ) |
| Deferred                                                                                 |        |   | 977     |   |   |   | 127 |   |
| Net cash provided by (used in) operating activities                                      |        |   | 2,770   |   |   |   | (395 | ) |
|                                                                                     |        |   |    |   |   |   |   |   |
| Cash flows used in investing activities:                                                 |        |   |    |   |   |   |   |   |
| Principal repayments on loans                                                            |        |   | 33,500  |   |   |   | 37,814 |   |
| Loan disbursements                                                                       |        |   | (13,473 | )      |   |   | (23,785 | ) |
| Purchase of investment securities – available for sale                             |        |   | (28,346 | )      |   |   | (76,670 | ) |
| Proceeds from maturity of investment securities – available for sale               |        |   | 44,050  |   |   |   | 72,101 |   |
| Principal repayments on mortgage-backed securities – available for sale            |        |   | 1,037   |   |   |   | 542 |   |
| Principal repayments on mortgage-backed securities – held to maturity              |        |   | 439     |   |   |   | 740 |   |
| Additions to real estate acquired through foreclosure                                    |        |   | (100    | )      |   |   | (96 | ) |
| Proceeds from sale of real estate acquired through foreclosure                           |        |   | 2,388   |   |   |   | 531 |   |
| Purchase of office premises and equipment                                                |        |   | (913    | )      |   |   | (34 | ) |
| Cash paid for acquisition, net of cash received                                          |        |   | (4,200  | )      |   |   | - |   |
| Net cash provided by investing activities                                                |        |   | 34,382  |   |   |   | 11,143 |   |
|                                                                                     |        |   |    |   |   |   |   |   |
| Cash flows provided by financing activities:                                             |        |   |    |   |   |   |   |   |
| Net increase in deposits – net of acquisition                                      |        |   | 1,813   |   |   |   | 11,877 |   |
| Proceeds from Federal Home Loan Bank advances – net of acquisition                 |        |   | 11,000  |   |   |   | 10,000 |   |
| Repayments on Federal Home Loan Bank advances – net of acquisition                 |        |   | (19,254 | )      |   |   | (14,969 | ) |
| Advances by borrowers for taxes and insurance – net of acquisition                 |        |   | (960    | )      |   |   | (481 | ) |
| Repayments on other borrowings                                                           |        |   | (1,490  | )      |   |   | - |   |
| Treasury stock repurchases                                                               |        |   | -       |   |   |   | (31 | ) |
| Stock option expense, net                                                                |        |   | 15      |   |   |   | 91 |   |
| Dividends paid on common stock                                                           |        |   | (1,224  | )      |   |   | (1,122 | ) |
| Net cash provided by (used in) financing activities                                      |        |   | (10,100 | )      |   |   | 5,365 |   |
|                                                                                     |        |   |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                |        |   | 27,052  |   |   |   | 16,113 |   |
| Cash and cash equivalents at beginning of period                                         |        |   | 18,149  |   |   |   | 11,283 |   |
| Cash and cash equivalents at end of period                                               |        | $      | 45,201  |   |   | $      | 27,396 |   |

----

|                                                                    |   | 2011        |   |   | 2010   |   |
|-------------------------------------------------------------------------|--------|-------------|--------|--------|--------|--------|
|                                                                    |   | (Unaudited) |   |
|                                                                    |   |        |   |   |   |   |
| Supplemental disclosure of cash flow information:                       |   |        |   |   |   |   |
| Cash paid during the period for:                                        |   |        |   |   |   |   |
| Federal income taxes                                                    |   | $           | 235    |   |   | $      | 794 |   |
|                                                                    |   |        |   |   |   |   |   |   |
| Interest on deposits and borrowings                                     |   | $           | 4,479  |   |   | $      | 3,597 |   |
|                                                                    |   |        |   |   |   |   |   |   |
| Supplemental disclosure of noncash investing activities:                |   |        |   |   |   |   |   |   |
| Transfer of loans to real estate acquired through foreclosure           |   | $           | 2,350  |   |   | $      | 181 |   |
|                                                                    |   |        |   |   |   |   |   |   |
| Loans originated upon sales of real estate acquired through foreclosure |   | $           | 102    |   |   | $      | - |   |
|                                                                    |   |        |   |   |   |   |   |   |
| Recognition of mortgage servicing rights                                |   | $           | 140    |   |   | $      | 118 |   |

----

----

|                                                    |   |           |    |   | Payments due by period |   |   |      |   |   |    |   |
|---------------------------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|-----------|--------|--------|---------|--------|
|                                                    |   | Less           |    |   | More than              |   |   | More than |   |   | More    |   |   |   |   |
|                                                    |   | than           |    |   |                   | 1-3    |   |      |   | 4-5    |    |   | than |   |   |   |   |
|                                                    |   | 1 year         |    |   | years                  |   |   | years     |   |   | 5 years |   |   | Total |   |
|                                                    |   | (In thousands) |    |
|                                                    |   |           |    |   |                   |   |   |      |   |   |    |   |   |   |   |   |   |
| Contractual obligations:                                |   |           |    |   |                   |   |   |      |   |   |    |   |   |   |   |   |   |
| Advances from the Federal Home Loan Bank                |   | $              | 9,952   |   |                   | $      | 3,326  |      |   | $      | 5,318   |   |   | $ | 23,428 |   |   | $ | 42,024 |   |
| Certificates of deposit                                 |   |           | 129,997 |   |                   |   | 75,755 |      |   |   | 67,957  |   |   |   | 981 |   |   |   | 274,690 |   |
|                                                    |   |           |    |   |                   |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |
| Amount of loan commitments and expiration per period:   |   |           |    |   |                   |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |
| Commitments to originate one- to four-family loans |   |           | 4,193   |   |                   |   | -      |      |   |   | -       |   |   |   | - |   |   |   | 4,193 |   |
| Home equity lines of credit                             |   |           | 28,845  |   |                   |   | -      |      |   |   | -       |   |   |   | - |   |   |   | 28,845 |   |
| Commercial lines of credit                              |   |           | 263     |   |                   |   | -      |      |   |   | -       |   |   |   | - |   |   |   | 263 |   |
| Undisbursed loans in process                            |   |           | 3,148   |   |                   |   | -      |      |   |   | -       |   |   |   | - |   |   |   | 3,148 |   |
|                                                    |   |           |    |   |                   |   |   |      |   |   |    |   |   |   |   |   |   |   |   |   |
| Total contractual obligations                           |   | $              | 176,398 |   |                   | $      | 79,081 |      |   | $      | 73,275  |   |   | $ | 24,409 |   |   | $ | 353,163 |   |

----

|                                                 |   | For the nine months ended |      |   | For the three months ended |   |
|------------------------------------------------------|--------|---------------------------|-----------|--------|----------------------------|--------|
|                                                 |   | September 30,             |      |   | September 30,              |   |
|                                                 |   | 2011                      |      |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
|                                                 |   |                      |      |   |                       |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding (basic)   |   |                      | 8,757,782 |   |                       |   | 8,723,800 |   |   |   | 8,757,782 |   |   |   | 8,722,075 |   |
|                                                 |   |                      |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive effect of assumed exercise of stock options |   |                      | 8,850     |   |                       |   | 9,051 |   |   |   | 9,219 |   |   |   | 9,179 |   |
|                                                 |   |                      |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding (diluted) |   |                      | 8,766,632 |   |                       |   | 8,732,851 |   |   |   | 8,767,001 |   |   |   | 8,731,254 |   |

----

|                               |   | Nine months ended  |    |   | Year ended        |   |
|------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                               |   | September 30, 2011 |    |   | December 31, 2010 |   |
|                               |   |               |    |   | Weighted-         |   |   |   |   |   | Weighted- |   |
|                               |   |               |    |   | average           |   |   |   |   |   | average |   |
|                               |   |               |    |   | exercise          |   |   |   |   |   | exercise |   |
|                               |   | Shares             |    |   | price             |   |   | Shares |   |   | price |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |
| Outstanding at beginning of period |   |               | 421,200 |   |              | $      | 11.05 |   |   |   | 412,340 |   |   | $ | 11.17 |   |
| Granted                            |   |               | 4,400   |   |              |   | 9.04 |   |   |   | 8,860 |   |   |   | 8.07 |   |
| Exercised                          |   |               | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                          |   |               | -       |   |              |   | - |   |   |   | - |   |   |   | - |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at end of period       |   |               | 425,600 |   |              | $      | 11.02 |   |   |   | 421,200 |   |   | $ | 11.05 |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at period-end  |   |               | 404,760 |   |              | $      | 11.14 |   |   |   | 397,260 |   |   | $ | 11.16 |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options granted      |   |               |    |   |              | $      | 5.30 |   |   |   |   |   |   | $ | 4.83 |   |

| Number outstanding                          |   |      | 425,600        |   |
|---------------------------------------------|--------|-----------|----------------|--------|
| Exercise price                              |   |      | $8.07 - $13.63 |   |
| Weighted-average exercise price             |   |      | $11.14         |   |
| Weighted-average remaining contractual life |   | 4.0 years |           |

----

|                              |   |      |   |   | September 30, 2011 |   |   |       |   |
|-----------------------------------|--------|-----------|--------|--------|--------------------|--------|--------|------------|--------|
|                              |   |      |   |   | Gross              |   |   | Gross      |   |   | Estimated |   |
|                              |   | Amortized |   |   | unrealized         |   |   | unrealized |   |   | fair |   |
|                              |   | cost      |   |   | gains              |   |   | losses     |   |   | value |   |
|                              |   |      |   |   | (In thousands)     |   |   |       |   |
| Available for Sale:               |   |      |   |   |               |   |   |       |   |   |   |   |
| U.S. Government agency securities |   | $         | 87,233 |   |               | $      | 264    |       |   | $ | 9 |   |   | $ | 87,488 |   |
| Municipal obligations             |   |      | 3,140  |   |               |   | 138    |       |   |   | 18 |   |   |   | 3,260 |   |
|                              |   |      |   |   |               |   |   |       |   |   |   |   |   |   |   |   |
|                              |   | $         | 90,373 |   |               | $      | 402    |       |   | $ | 27 |   |   | $ | 90,748 |   |

|                              |   |      |   |   |       | December 31, 2010 |   |       |   |   |   |
|-----------------------------------|--------|-----------|--------|--------|------------|-------------------|--------|------------|--------|--------|--------|
|                              |   |      |   |   |       | Gross             |   |       | Gross  |   |   | Estimated |   |
|                              |   | Amortized |   |   | unrealized |              |   | unrealized |   |   | fair   |   |
|                              |   | cost      |   |   | gains      |              |   | losses     |   |   | value  |   |
|                              |   |      |   |   |       | (In thousands)    |   |       |   |   |   |
| Available for Sale:               |   |      |   |   |       |              |   |       |   |   |   |   |   |   |   |   |
| U.S. Government agency securities |   | $         | 88,529 |   |       | $                 | 102    |       |   | $      | 1,622  |   |   | $ | 87,009 |   |
| Municipal obligations             |   |      | 1,545  |   |       |              | 5      |       |   |   | 177    |   |   |   | 1,373 |   |
|                              |   |      |   |   |       |              |   |       |   |   |   |   |   |   |   |   |
|                              |   | $         | 90,074 |   |       | $                 | 107    |       |   | $      | 1,799  |   |   | $ | 88,382 |   |

|                |   | September 30,  |   |
|---------------------|--------|----------------|--------|
|                |   | 2011           |   |
|                |   | (In thousands) |   |
| Less than one year  |   | $              | 70,846 |   |
| One to five years   |   |           | 10,954 |   |
| Five to ten years   |   |           | 1,325  |   |
| More than ten years |   |           | 7,248  |   |
|                |   |           |   |   |
|                |   | $              | 90,373 |   |

----

|                                                                                |   |      |   |   | September 30, 2011 |   |   |       |   |
|-------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------------------|--------|--------|------------|--------|
|                                                                                |   |      |   |   | Gross              |   |   | Gross      |   |   | Estimated |   |
|                                                                                |   | Amortized |   |   | unrealized         |   |   | unrealized |   |   | fair |   |
|                                                                                |   | cost      |   |   | gains              |   |   | losses     |   |   | value |   |
|                                                                                |   |      |   |   | (In thousands)     |   |   |       |   |
| Available for sale:                                                                 |   |      |   |   |               |   |   |       |   |   |   |   |
| Federal Home Loan Mortgage Corporation adjustable-rate participation certificates   |   | $         | 1,185  |   |               | $      | 141    |       |   | $ | 1 |   |   | $ | 1,325 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |      | 2,895  |   |               |   | 55     |       |   |   | 3 |   |   |   | 2,947 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |      | 3,650  |   |               |   | 109    |       |   |   | 16 |   |   |   | 3,743 |   |
|                                                                                |   |      |   |   |               |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                |   | $         | 7,730  |   |               | $      | 305    |       |   | $ | 20 |   |   | $ | 8,015 |   |
|                                                                                |   |      |   |   |               |   |   |       |   |   |   |   |   |   |   |   |
| Held to maturity:                                                                   |   |      |   |   |               |   |   |       |   |   |   |   |   |   |   |   |
| Federal Home Loan Mortgage Corporation adjustable-rate participation certificates   |   | $         | 409    |   |               | $      | 9      |       |   | $ | 1 |   |   | $ | 417 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |      | 444    |   |               |   | 8      |       |   |   | 2 |   |   |   | 450 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |      | 3,487  |   |               |   | 145    |       |   |   | 1 |   |   |   | 3,631 |   |
|                                                                                |   |      |   |   |               |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                |   | $         | 4,340  |   |               | $      | 162    |       |   | $ | 4 |   |   | $ | 4,498 |   |

----

|                                                                                |   |      |   |   | December 31, 2010 |   |   |       |   |
|-------------------------------------------------------------------------------------|--------|-----------|--------|--------|-------------------|--------|--------|------------|--------|
|                                                                                |   |      |   |   |              |   |   |       |   |   |   |   |
|                                                                                |   |      |   |   | Gross             |   |   | Gross      |   |   | Estimated |   |
|                                                                                |   | Amortized |   |   | unrealized        |   |   | unrealized |   |   | fair |   |
|                                                                                |   | cost      |   |   | gains             |   |   | losses     |   |   | value |   |
|                                                                                |   |      |   |   | (In thousands)    |   |   |       |   |
| Available for sale:                                                                 |   |      |   |   |              |   |   |       |   |   |   |   |
| Federal Home Loan Mortgage Corporation adjustable-rate participation certificates   |   | $         | 723    |   |              | $      | 13     |       |   | $ | - |   |   | $ | 736 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |      | 548    |   |              |   | 17     |       |   |   | - |   |   |   | 565 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |      | 2,908  |   |              |   | 70     |       |   |   | - |   |   |   | 2,978 |   |
|                                                                                |   |      |   |   |              |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                |   | $         | 4,179  |   |              | $      | 100    |       |   | $ | - |   |   | $ | 4,279 |   |
|                                                                                |   |      |   |   |              |   |   |       |   |   |   |   |   |   |   |   |
| Held to maturity:                                                                   |   |      |   |   |              |   |   |       |   |   |   |   |   |   |   |   |
| Federal Home Loan Mortgage Corporation adjustable-rate participation certificates   |   | $         | 464    |   |              | $      | 10     |       |   | $ | 1 |   |   | $ | 473 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |      | 515    |   |              |   | 7      |       |   |   | - |   |   |   | 522 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |      | 3,800  |   |              |   | 121    |       |   |   | - |   |   |   | 3,921 |   |
|                                                                                |   |      |   |   |              |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                |   | $         | 4,779  |   |              | $      | 138    |       |   | $ | 1 |   |   | $ | 4,916 |   |

|                                |   | September 30,  |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | 2011           |   |
|                                |   | (In thousands) |   |
|                                |   |           |   |
| Due in one year or less             |   | $              | 570    |   |
| Due in one year through five years  |   |           | 2,411  |   |
| Due in five years through ten years |   |           | 3,334  |   |
| Due in more than ten years          |   |           | 5,755  |   |
|                                |   |           |   |   |
|                                |   | $              | 12,070 |   |

----

|                                  |   | 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      |   |                | $      | 9,991  |       |   | $      | 9                      |   |   |   | -      |   |   | $ | - |   |   | $ | - |   |   |   | 2 |   |   | $ | 9,991 |   |   | $ | 9 |   |
| Municipal obligations                 |   |                | -      |   |                |   | -      |       |   |   | -                      |   |   |   | 1      |   |   |   | 697 |   |   |   | 18 |   |   |   | 1 |   |   |   | 697 |   |   |   | 18 |   |
| Mortgage-backed securities            |   |                | 14     |   |                |   | 761    |       |   |   | 23                     |   |   |   | 5      |   |   |   | 43 |   |   |   | 1 |   |   |   | 19 |   |   |   | 804 |   |   |   | 24 |   |
|                                  |   |                |   |   |                |   |   |       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   |                | 16     |   |                | $      | 10,752 |       |   | $      | 32                     |   |   |   | 6      |   |   | $ | 740 |   |   | $ | 19 |   |   |   | 22 |   |   | $ | 11,492 |   |   | $ | 51 |   |

----

|                                                                 |   | 2011                   |   |   | 2010   |   |
|----------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                 |   | (Dollars in thousands) |   |
|                                                                 |   |                   |   |   |   |   |
| Federal income taxes at statutory rate of 34%                        |   | $                      | 1,074  |   |   | $      | 910 |   |
| Increase (decrease) in taxes resulting primarily from:               |   |                   |   |   |   |   |   |   |
| Stock compensation                                                   |   |                   | (7     | )      |   |   | 49 |   |
| Nontaxable interest income                                           |   |                   | (28    | )      |   |   | (16 | ) |
| Cash surrender value of life insurance                               |   |                   | (71    | )      |   |   | (35 | ) |
| Utilization of net operating loss carryforwards, previously reserved |   |                   | (241   | )      |   |   | - |   |
| Other                                                                |   |                   | 7      |   |   |   | 4 |   |
|                                                                 |   |                   |   |   |   |   |   |   |
| Federal income taxes per consolidated financial statements           |   | $                      | 734    |   |   | $      | 912 |   |
|                                                                 |   |                   |   |   |   |   |   |   |
| Effective tax rate                                                   |   |                   | 23.2   | %      |   |   | 34.1 | % |

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

|   | Level 2 | Observable 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 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 |   | Quoted prices |   |   |        |   |   |         |   |
|------------------------------------------------------|--------|---------------|--------|--------|-------------|--------|--------|--------------|--------|
|                                                 |   | in active     |   |   | Significant |   |   | Significant  |   |
|                                                 |   | markets for   |   |   | other       |   |   | other        |   |
|                                                 |   | identical     |   |   | observable  |   |   | unobservable |   |
|                                                 |   | assets        |   |   | inputs      |   |   | inputs       |   |
|                                                 |   | (Level 1)     |   |   | (Level 2)   |   |   | (Level 3)    |   |
| Securities available for sale at September 30, 2011: |   |          |   |   |        |   |   |         |   |
|                                                 |   |          |   |   |        |   |   |         |   |
| U.S. Government agency securities                    |   |          | -      |   |        | $      | 87,488 |         |   |   | - |   |
| Municipal obligations                                |   |          | -      |   |        | $      | 3,260  |         |   |   | - |   |
| Mortgage-backed securities                           |   |          | -      |   |        | $      | 8,015  |         |   |   | - |   |
|                                                 |   |          |   |   |        |   |   |         |   |   |   |   |
| Securities available for sale at December 31, 2010:  |   |          |   |   |        |   |   |         |   |   |   |   |
|                                                 |   |          |   |   |        |   |   |         |   |   |   |   |
| U.S. Government agency securities                    |   |          | -      |   |        | $      | 87,009 |         |   |   | - |   |
| Municipal obligations                                |   |          | -      |   |        | $      | 1,373  |         |   |   | - |   |
| Mortgage-backed securities                           |   |          | -      |   |        | $      | 4,279  |         |   |   | - |   |

----

----

----

----

|   | 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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deposits:  The fair value of NOW accounts, passbook accounts, and money market demand deposits is deemed to approximate the amount payable on demand at September 30, 2011.  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 September 30, 2011, the fair value of the derivative loan commitments was not material. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | September 30, 2011 |    |   | December 31, 2010 |   |
|-----------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                          |   | Carrying           |    |   | Fair              |   |   | Carrying |   |   | Fair |   |
|                                          |   | Value              |    |   | Value             |   |   | Value |   |   | Value |   |
|                                          |   | (In thousands)     |    |   | (In thousands)    |   |
| Financial assets                              |   |               |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                     |   | $                  | 45,201  |   |              | $      | 45,201 |   |   | $ | 18,149 |   |   | $ | 18,149 |   |
| Investment securities                         |   |               | 90,748  |   |              |   | 90,748 |   |   |   | 88,382 |   |   |   | 88,382 |   |
| Mortgage-backed securities                    |   |               | 12,355  |   |              |   | 12,513 |   |   |   | 9,058 |   |   |   | 9,195 |   |
| Loans receivable - net                        |   |               | 397,460 |   |              |   | 410,517 |   |   |   | 225,438 |   |   |   | 233,272 |   |
| Accrued interest receivable                   |   |               | 2,111   |   |              |   | 2,111 |   |   |   | 1,340 |   |   |   | 1,340 |   |
| Federal Home Loan Bank stock                  |   |               | 8,366   |   |              |   | 8,366 |   |   |   | 3,375 |   |   |   | 3,375 |   |
|                                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | $                  | 556,241 |   |              | $      | 569,456 |   |   | $ | 345,742 |   |   | $ | 353,713 |   |
|                                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities                         |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                      |   | $                  | 480,390 |   |              | $      | 480,378 |   |   | $ | 257,852 |   |   | $ | 257,672 |   |
| Advances from the Federal Home Loan Bank      |   |               | 42,024  |   |              |   | 43,216 |   |   |   | 27,300 |   |   |   | 30,597 |   |
| Accrued interest payable                      |   |               | 163     |   |              |   | 163 |   |   |   | 99 |   |   |   | 99 |   |
| Advances by borrowers for taxes and insurance |   |               | 1,772   |   |              |   | 1,772 |   |   |   | 1,440 |   |   |   | 1,440 |   |
|                                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | $                  | 524,349 |   |              | $      | 525,529 |   |   | $ | 286,691 |   |   | $ | 289,808 |   |

----

----

| Purchase price                                                                |   |   |   |
|-------------------------------------------------------------------------------|--------|--------|--------|
| First Franklin common shares outstanding (in thousands)                       |   |   | 1,693  |   |
| Purchase price per share of First Franklin’s common stock               |   | $      | 14.50  |   |
| Total value of the First Franklin’s common stock                        |   | $      | 24,549 |   |
| Fair value of outstanding employee stock awards, net of tax                   |   |   | 131    |   |
|                                                                          |   |   |   |   |
| Total purchase price                                                          |   | $      | 24,680 |   |
|                                                                          |   |   |   |   |
| Allocation of purchase price                                                  |   |   |   |   |
| Stockholders’ equity                                                    |   | $      | 20,755 |   |
|                                                                          |   |   |   |   |
| Pre-tax adjustments to reflect acquired assets and liabilities at fair value: |   |   |   |   |
| Loans receivable                                                              |   |   | (2,462 | ) |
| Real estate owned                                                             |   |   | (750   | ) |
| Office premises and equipment                                                 |   |   | 1,970  |   |
| Core deposit intangible                                                       |   |   | 1,298  |   |
| Certificates of deposit                                                       |   |   | (2,718 | ) |
| Advances from the Federal Home Loan Bank                                      |   |   | (838   | ) |
| Contractual obligations                                                       |   |   | (4,390 | ) |
| Other assets/liabilities                                                      |   |   | 427    |   |
| Pre-tax total adjustments                                                     |   |   | (7,463 | ) |
|                                                                          |   |   |   |   |
| Deferred income tax benefits, net of valuation allowance                      |   |   | 1,079  |   |
| After-tax total adjustments                                                   |   |   | (6,384 | ) |
| Fair value of net assets acquired                                             |   |   | 14,371 |   |
|                                                                          |   |   |   |   |
| Goodwill resulting from the First Franklin acquisition                        |   | $      | 10,309 |   |

----

|                                     |   | March 16,      |    |
|------------------------------------------|--------|----------------|---------|
|                                     |   | 2011           |    |
|                                     |   | (in thousands) |    |
|                                     |   |           |    |
| Assets:                                  |   |           |    |
| Cash and cash equivalents                |   | $              | 20,480  |   |
| Investment securities                    |   |           | 15,618  |   |
| Mortgage-backed securities               |   |           | 4,497   |   |
| Loans receivable – net             |   |           | 196,519 |   |
| Real estate acquired through foreclosure |   |           | 2,404   |   |
| Office premises and equipment            |   |           | 4,927   |   |
| Goodwill and intangible assets           |   |           | 11,607  |   |
|                                     |   |           |    |   |
| Other assets                             |   |           | 21,509  |   |
| Total Assets                             |   | $              | 277,561 |   |
|                                     |   |           |    |   |
| Liabilities:                             |   |           |    |   |
| Deposits                                 |   | $              | 221,528 |   |
| Advances from the Federal Home Loan Bank |   |           | 23,216  |   |
| Other borrowings                         |   |           | 1,490   |   |
| Accrued expenses and other liabilities   |   |           | 6,647   |   |
| Total liabilities                        |   |           | 252,881 |   |
|                                     |   |           |    |   |
| Fair value of net assets acquired        |   | $              | 24,680  |   |

----

| 2011  |   | $      | 90    |   |
|-------|--------|--------|-------|--------|
| 2012  |   |   | 282   |   |
| 2013  |   |   | 206   |   |
| 2014  |   |   | 149   |   |
| 2015  |   |   | 116   |   |
| 2016  |   |   | 110   |   |
| 2017  |   |   | 110   |   |
| 2018  |   |   | 55    |   |
| Total |   | $      | 1,118 |   |

|                           |   | One-to four |    |   |         |   |   |         |   |   |       |   |   |     |   |   |   |   |
|--------------------------------|--------|-------------|---------|--------|--------------|--------|--------|--------------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|
|                           |   | Family      |    |   | Multi-family |   |   |         |   |   |       |   |   |     |   |   |   |   |
|                           |   | Residential |    |   | Residential  |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total  |   |
|                           |   |        |    |   |         |   |   |         |   |   |       |   |   |     |   |   |   |   |
| Purchased loans                |   | $           | 125,123 |   |         | $      | 15,411 |         |   | $      | -          |   |   | $        | 43,667 |   |   | $      | 2,918 |   |   | $ | 187,119 |   |
| Credit quality discount        |   |        | (2,446  | )      |         |   | (208   | )            |   |   | -          |   |   |     | (2,408 | )      |   |   | (1,584 | ) |   |   | (6,646 | ) |
| Purchased loans book value (3) |   |        | 122,677 |   |         |   | 15,203 |         |   |   | -          |   |   |     | 41,259 |   |   |   | 1,334 |   |   |   | 180,473 |   |
| Originated loans (1)           |   |        | 182,991 |   |         |   | 11,178 |         |   |   | 5,849      | (2)    |   |     | 21,106 |   |   |   | 262 |   |   |   | 221,386 |   |
| Ending balance                 |   | $           | 305,668 |   |         | $      | 26,381 |         |   | $      | 5,849      |   |   | $        | 62,365 |   |   | $      | 1,596 |   |   | $ | 401,859 |   |

| (1) | Includes loans held for sale |
|-----|------------------------------|

| (2) | Before consideration of undisbursed Loans-in-process |
|-----|------------------------------------------------------|

| (3) | Loans purchased in acquisition of First Franklin |
|-----|--------------------------------------------------|

|                           |   |            |    |   | Credit          |   |
|--------------------------------|--------|-----------------|---------|--------|-----------------|--------|
|                           |   | Non-impaired    |    |   | Impaired        |   |
|                           |   | Purchased Loans |    |   | Purchased Loans |   |
|                           |   |            |    |   |            |   |
| One-to-four family residential |   | $               | 117,061 |   |            | $      | 5,616 |   |
| Multi-family residential       |   |            | 14,065  |   |            |   | 1,138 |   |
| Construction                   |   |            | -       |   |            |   | - |   |
| Commercial                     |   |            | 32,562  |   |            |   | 8,697 |   |
| Consumer                       |   |            | 63      |   |            |   | 1,271 |   |
| Total                          |   | $               | 163,751 |   |            | $      | 16,722 |   |

----

|                                            |   | September 30, 2011           |    |
|-------------------------------------------------|--------|------------------------------|---------|
|                                            |   | One-to fourFamilyResidential |    |   | Multi-familyResidential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses:                      |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                               |   | $                            | 979     |   |   | $ | 49 |   |   | $ | 33 |   |   | $ | 180 |   |   | $ | 1 |   |   | $ | 1,242 |   |
| Provision                                       |   |                         | 271     |   |   |   | 100 |   |   |   | - |   |   |   | 29 |   |   |   | - |   |   |   | 400 |   |
| Charge-offs                                     |   |                         | (212    | ) |   |   | - |   |   |   | (26 | ) |   |   | - |   |   |   | (2 | ) |   |   | (240 | ) |
| Recoveries                                      |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13 |   |   |   | 13 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |   | $                            | 1,038   |   |   | $ | 149 |   |   | $ | 7 |   |   | $ | 209 |   |   | $ | 12 |   |   | $ | 1,415 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment           |   | $                            | 373     |   |   | $ | - |   |   | $ | - |   |   | $ | 8 |   |   | $ | - |   |   | $ | 381 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |   | $                            | 665     |   |   | $ | 149 |   |   | $ | 7 |   |   | $ | 201 |   |   | $ | 12 |   |   | $ | 1,034 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable:                               |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |   | $                            | 305,668 |   |   | $ | 26,381 |   |   | $ | 5,849 |   |   | $ | 62,365 |   |   | $ | 1,596 |   |   | $ | 401,859 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment (1)       |   | $                            | 121,909 |   |   | $ | 14,162 |   |   | $ | - |   |   | $ | 32,909 |   |   | $ | 63 |   |   | $ | 169,043 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |   | $                            | 178,143 |   |   | $ | 11,081 |   |   | $ | 5,849 |   |   | $ | 20,759 |   |   | $ | 262 |   |   | $ | 216,094 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans acquired with deteriorated credit quality |   | $                            | 5,616   |   |   | $ | 1,138 |   |   | $ | - |   |   | $ | 8,697 |   |   | $ | 1,271 |   |   | $ | 16,722 |   |

----

|                                            | December 31, 2010            |   |
|-------------------------------------------------|------------------------------|--------|
|                                            | One-to fourFamilyResidential |   | Multi-familyResidential |   | Construction |   | Commercial |   | Consumer |   | Total |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses:                      |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                               |                         | $      | 892 |   |   | $ | 30 |   |   | $ | 28 |   |   | $ | 75 |   |   | $ | - |   |   | $ | 1,025 |   |
| Provision                                       |                         |   | 364 |   |   |   | 19 |   |   |   | 5 |   |   |   | 161 |   |   |   | 1 |   |   |   | 550 |   |
| Charge-offs                                     |                         |   | (277 | ) |   |   | - |   |   |   | - |   |   |   | (56 | ) |   |   | - |   |   |   | (333 | ) |
| Recoveries                                      |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |                         | $      | 979 |   |   | $ | 49 |   |   | $ | 33 |   |   | $ | 180 |   |   | $ | 1 |   |   | $ | 1,242 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment           |                         | $      | 217 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 217 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |                         | $      | 762 |   |   | $ | 49 |   |   | $ | 33 |   |   | $ | 180 |   |   | $ | 1 |   |   | $ | 1,025 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans acquired with deteriorated credit quality |                         | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            | December 31, 2010            |   |
|                                            | One-to fourFamilyResidential |   | Multi-familyResidential |   | Construction |   | Commercial |   | Consumer |   | Total |   |
| Loans receivable:                               |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |                         | $      | 195,801 |   |   | $ | 8,594 |   |   | $ | 7,081 |   |   | $ | 19,329 |   |   | $ | 207 |   |   | $ | 231,012 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment           |                         | $      | 4,989 |   |   | $ | - |   |   | $ | - |   |   | $ | 222 |   |   | $ | - |   |   | $ | 5,211 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |                         | $      | 190,812 |   |   | $ | 8,594 |   |   | $ | 7,081 |   |   | $ | 19,107 |   |   | $ | 207 |   |   | $ | 225,801 |   |
|                                            |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans acquired with deteriorated credit quality |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

|            |   | Originated Loans at September 30, 2011 |    |
|-----------------|--------|----------------------------------------|---------|
|            |   | One-to four                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Family                                 |    |   | Multi-family |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Residential                            |    |   | Residential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grade:          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                                      | 178,406 |   |   | $ | 11,081 |   |   | $ | 5,849 |   |   | $ | 20,760 |   |   | $ | 262 |   |   | $ | 216,358 |   |
| Special mention |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Substandard     |   |                                   | 4,585   |   |   |   | 97 |   |   |   | - |   |   |   | 346 |   |   |   | - |   |   |   | 5,028 |   |
| Doubtful        |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total           |   | $                                      | 182,991 |   |   | $ | 11,178 |   |   | $ | 5,849 |   |   | $ | 21,106 |   |   | $ | 262 |   |   | $ | 221,386 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Loans Receivable at December 31, 2010  |    |
|            |   | One-to four                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Family                                 |    |   | Multi-family |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Residential                            |    |   | Residential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grade:          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                                      | 190,812 |   |   | $ | 8,594 |   |   | $ | 7,081 |   |   | $ | 19,107 |   |   | $ | 207 |   |   | $ | 225,801 |   |
| Special mention |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Substandard     |   |                                   | 4,989   |   |   |   | - |   |   |   | - |   |   |   | 222 |   |   |   | - |   |   |   | 5,211 |   |
| Doubtful        |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total           |   | $                                      | 195,801 |   |   | $ | 8,594 |   |   | $ | 7,081 |   |   | $ | 19,329 |   |   | $ | 207 |   |   | $ | 231,012 |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Purchased Loans at September 30, 2011  |    |
|            |   | One-to four                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Family                                 |    |   | Multi-family |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Residential                            |    |   | Residential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grade:          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                                      | 116,605 |   |   | $ | 14,899 |   |   | $ | - |   |   | $ | 38,092 |   |   | $ | 1,306 |   |   | $ | 170,902 |   |
| Special mention |   |                                   | 131     |   |   |   | - |   |   |   | - |   |   |   | 988 |   |   |   | - |   |   |   | 1,119 |   |
| Substandard     |   |                                   | 5,941   |   |   |   | 304 |   |   |   | - |   |   |   | 2,179 |   |   |   | 28 |   |   |   | 8,452 |   |
| Doubtful        |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total           |   | $                                      | 122,677 |   |   | $ | 15,203 |   |   | $ | - |   |   | $ | 41,259 |   |   | $ | 1,334 |   |   | $ | 180,473 |   |

----

|                    |   | Age Analysis of Past Due Originated Loans Receivable |   |
|-------------------------|--------|------------------------------------------------------|--------|
|                    |   | As of September 30, 2011                             |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Recorded |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Investment |   |
|                    |   | 30-89 Days                                           |   |   |  Over 90 days |   |   | Total Past |   |   | Current and |   |   |   |   |   | Total |   |   | 90 Days and |   |
|                    |   | Past Due                                             |   |   | Past Due |   |   | Due |   |   | Accruing |   |   | Nonaccrual |   |   | Loans |   |   | Accruing |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:            |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential   |   | $                                                    | 649    |   |   | $ | 4,584 |   |   | $ | 5,233 |   |   | $ | 178,407 |   |   | $ | 4,584 |   |   | $ | 182,991 |   |   |   | - |   |
| Multi-familyResidential |   |                                                 | -      |   |   |   | 97 |   |   |   | 97 |   |   |   | 11,081 |   |   |   | 97 |   |   |   | 11,178 |   |   |   | - |   |
| Construction            |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | 5,849 |   |   |   | - |   |   |   | 5,849 |   |   |   | - |   |
| Commercial              |   |                                                 | -      |   |   |   | 347 |   |   |   | 347 |   |   |   | 20,759 |   |   |   | 347 |   |   |   | 21,106 |   |   |   | - |   |
| Consumer                |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | 262 |   |   |   | - |   |   |   | 262 |   |   |   | - |   |
| Total                   |   | $                                                    | 649    |   |   | $ | 5,028 |   |   | $ | 5,677 |   |   | $ | 216,358 |   |   | $ | 5,028 |   |   | $ | 221,386 |   |   |   | - |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    |   | Age Analysis of Past Due Originated Loans Receivable |   |
|                    |   | As of December 31, 2010                              |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Recorded |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Investment |   |
|                    |   | 30-89 Days                                           |   |   | Over 90 days |   |   | Total Past |   |   | Current and |   |   |   |   |   |   | Total |   |   | 90 Days and |   |
|                    |   | Past Due                                             |   |   | Past Due |   |   | Due |   |   | accruing |   |   | Nonaccrual |   |   | Loans |   |   | Accruing |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:            |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential   |   | $                                                    | 1,017  |   |   | $ | 4,695 |   |   | $ | 5,712 |   |   | $ | 191,106 |   |   | $ | 4,695 |   |   | $ | 195,801 |   |   |   | - |   |
| Multi-familyResidential |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | 8,594 |   |   |   | - |   |   |   | 8,594 |   |   |   | - |   |
| Construction            |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | 7,081 |   |   |   | - |   |   |   | 7,081 |   |   |   | - |   |
| Commercial              |   |                                                 | 46     |   |   |   | 160 |   |   |   | 206 |   |   |   | 19,169 |   |   |   | 160 |   |   |   | 19,329 |   |   |   | - |   |
| Consumer                |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | 207 |   |   |   | - |   |   |   | 207 |   |   |   | - |   |
| Total                   |   | $                                                    | 1,063  |   |   | $ | 4,855 |   |   | $ | 5,918 |   |   | $ | 226,157 |   |   | $ | 4,855 |   |   | $ | 231,012 |   |   |   | - |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    |   | Age Analysis of Past Due Purchased Loans Receivable  |   |
|                    |   | As of September 30, 2011                             |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Recorded |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Investment |   |
|                    |   | 30-89 Days                                           |   |   | Over 90 days |   |   | Total Past |   |   | Current and |   |   |   |   |   |   | Total |   |   | 90 Days and |   |
|                    |   | Past Due                                             |   |   | Past Due |   |   | Due |   |   | Accruing |   |   | Nonaccrual |   |   | Loans |   |   | Accruing |   |
|                    |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:            |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential   |   | $                                                    | 1,744  |   |   | $ | 6,352 |   |   | $ | 8,096 |   |   | $ | 116,325 |   |   | $ | 6,352 |   |   | $ | 122,677 |   |   |   | - |   |
| Multi-familyResidential |   |                                                 | -      |   |   |   | 488 |   |   |   | 488 |   |   |   | 14,715 |   |   |   | 488 |   |   |   | 15,203 |   |   |   | - |   |
| Construction            |   |                                                 | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial              |   |                                                 | 11     |   |   |   | 746 |   |   |   | 757 |   |   |   | 40,513 |   |   |   | 746 |   |   |   | 41,259 |   |   |   | - |   |
| Consumer                |   |                                                 | -      |   |   |   | 11 |   |   |   | 11 |   |   |   | 1,323 |   |   |   | 11 |   |   |   | 1,334 |   |   |   | - |   |
| Total                   |   | $                                                    | 1,755  |   |   | $ | 7,597 |   |   | $ | 9,352 |   |   | $ | 172,876 |   |   | $ | 7,597 |   |   | $ | 180,473 |   |   |   | - |   |

----

|                                                                                       |   | Impaired Loans           |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                       |   | As of September 30, 2011 |   |
|                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                     |   |   | Unpaid |   |   |   |   |   | Average |   |   | Interest |   |
|                                                                                       |   | Recorded                 |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                                                                                       |   | Investment               |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| Purchased loanswith no relatedallowance recorded:                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential                                                                      |   | $                        | 5,616  |   |   | $ | 5,616 |   |   | $ | - |   |   | $ | 85 |   |   | $ | 105 |   |
| Multi-family                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                                                                                |   |                     | 1,138  |   |   |   | 1,138 |   |   |   | - |   |   |   | 228 |   |   |   | 17 |   |
| Construction                                                                               |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                                                                                 |   |                     | 8,697  |   |   |   | 8,697 |   |   |   | - |   |   |   | 457 |   |   |   | 11 |   |
| Consumer                                                                                   |   |                     | 1,271  |   |   |   | 1,271 |   |   |   | - |   |   |   | 42 |   |   |   | 1 |   |
| Total                                                                                      |   | $                        | 16,722 |   |   | $ | 16,722 |   |   | $ | - |   |   | $ | 139 |   |   | $ | 134 |   |
|                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   | Impaired Loans           |   |
|                                                                                       |   | As of September 30, 2011 |   |
|                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |                     |   |   |   | Unpaid |   |   |   |   |   |   | Average |   |   | Interest |   |
|                                                                                       |   | Recorded                 |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                                                                                       |   | Investment               |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| Originated loanswith no relatedallowance recorded                                          |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential                                                                      |   | $                        | 4,264  |   |   | $ | 4,264 |   |   | $ | - |   |   | $ | 112 |   |   | $ | 66 |   |
| Multi-family                                                                               |   |                     | 97     |   |   |   | 97 |   |   |   | - |   |   |   | 97 |   |   |   | 4 |   |
| Commercial                                                                                 |   |                     | 187    |   |   |   | 187 |   |   |   | - |   |   |   | 93 |   |   |   | 4 |   |
| Consumer                                                                                   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                                      |   | $                        | 4,548  |   |   | $ | 4,548 |   |   | $ | - |   |   | $ | 111 |   |   | $ | 74 |   |
| Originated loans withan allowance recorded:                                                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential                                                                      |   | $                        | 211    |   |   | $ | 584 |   |   | $ | 373 |   |   | $ | 26 |   |   | $ | - |   |
| Commercial                                                                                 |   |                     | 152    |   |   |   | 160 |   |   |   | 8 |   |   |   | 152 |   |   |   | - |   |
| Consumer                                                                                   |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                                      |   | $                        | 363    |   |   | $ | 744 |   |   | $ | 381 |   |   | $ | 40 |   |   | $ | - |   |
| Total:                                                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential                                                                      |   | $                        | 10,091 |   |   | $ | 10,464 |   |   | $ | 373 |   |   | $ | 90 |   |   | $ | 171 |   |
|             Multi-family  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                                                                                |   |                     | 1,235  |   |   |   | 1,235 |   |   |   | - |   |   |   | 206 |   |   |   | 21 |   |
| Construction                                                                               |   |                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                                                                                 |   |                     | 9,036  |   |   |   | 9,044 |   |   |   | 8 |   |   |   | 411 |   |   |   | 15 |   |
| Consumer                                                                                   |   |                     | 1,271  |   |   |   | 1,271 |   |   |   | - |   |   |   | 42 |   |   |   | 1 |   |
| Total                                                                                      |   | $                        | 21,633 |   |   | $ | 22,014 |   |   | $ | 381 |   |   | $ | 127 |   |   | $ | 208 |   |

----

|                   |   | Impaired Loans          |   |
|------------------------|--------|-------------------------|--------|
|                   |   | As of December 31, 2010 |   |
|                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |                    |   |   | Unpaid |   |   |   |   |   | Average |   |   | Interest |   |
|                   |   | Recorded                |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                   |   | Investment              |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Originated loans       |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| with no related        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| allowance recorded:    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential  |   | $                       | 4,038  |   |   | $ | 4,038 |   |   | $ | - |   |   | $ | 104 |   |   | $ | 126 |   |
| Multi-family           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction           |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial             |   |                    | 222    |   |   |   | 222 |   |   |   | - |   |   |   | 111 |   |   |   | 2 |   |
| Consumer               |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                  |   | $                       | 4,260  |   |   | $ | 4,260 |   |   | $ | - |   |   | $ | 215 |   |   | $ | 128 |   |
|                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | Impaired Loans          |   |
|                   |   | As of December 31, 2010 |   |
|                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   |                    |   |   |   | Unpaid |   |   |   |   |   |   | Average |   |   | Interest |   |
|                   |   | Recorded                |   |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                   |   | Investment              |   |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
|                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Originated with        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| an allowance recorded: |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential  |   | $                       | 734    |   |   | $ | 951 |   |   | $ | 217 |   |   | $ | 56 |   |   | $ | 9 |   |
| Multi-family           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction           |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial             |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer               |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                  |   | $                       | 734    |   |   | $ | 951 |   |   | $ | 217 |   |   | $ | 56 |   |   | $ | 9 |   |
| Total:                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 familyResidential  |   | $                       | 4,772  |   |   | $ | 4,989 |   |   | $ | 217 |   |   | $ | 160 |   |   | $ | 135 |   |
| Multi-family           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction           |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial             |   |                    | 222    |   |   |   | 222 |   |   |   | - |   |   |   | 111 |   |   |   | 2 |   |
| Consumer               |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                  |   | $                       | 4,994  |   |   | $ | 5,211 |   |   | $ | 217 |   |   | $ | 203 |   |   | $ | 137 |   |

----

|                         |   | Modifications            |   |   |                 |   |
|------------------------------|--------|--------------------------|--------|--------|----------------------|--------|
|                         |   | As of September 30, 2011 |   |   |                 |   |
|                         |   |                     |   |   |                 |   |   |   |   |
|                         |   |                     |   |   | Pre-Modification     |   |   | Post-Modification |   |
|                         |   |                     |   |   |                 |   |   | Outstanding |   |
|                         |   | Number of                |   |   | Outstanding Recorded |   |   | Recorded |   |
|                         |   | Contracts                |   |   | Investment           |   |   | Investment |   |
| Troubled Debt Restructurings |   |                     |   |   |                 |   |   |   |   |
| Real Estate:                 |   |                     |   |   |                 |   |   |   |   |
| 1-4 Family Residential       |   |                     | 2      |   |                 | $      | 1,272 |   |   | $ | 1,274 |   |
| Multi-family Residential     |   |                     | -      |   |                 |   | - |   |   |   | - |   |
| Construction                 |   |                     | -      |   |                 |   | - |   |   |   | - |   |
| Commercial                   |   |                     | -      |   |                 |   | - |   |   |   | - |   |
| Consumer                     |   |                     | -      |   |                 |   | - |   |   |   | - |   |
|                         |   |                     |   |   |                 |   |   |   |   |   |   |   |
|                         |   | Number of                |   |   | Recorded             |   |   |   |   |   |
|                         |   | Contracts                |   |   | Investment           |   |   |   |   |   |
| Troubled Debt Restructurings |   |                     |   |   |                 |   |   |   |   |   |   |   |
| That Subsequently Defaulted  |   |                     |   |   |                 |   |   |   |   |   |   |   |
|                         |   |                     |   |   |                 |   |   |   |   |   |   |   |
| Real Estate:                 |   |                     |   |   |                 |   |   |   |   |   |   |   |
| 1-4 Family Residential       |   |                     | 2      |   |                 | $      | 1,274 |   |   |   |   |   |
| Multi-family Residential     |   |                     | -      |   |                 |   | - |   |   |   |   |   |
| Construction                 |   |                     | -      |   |                 |   | - |   |   |   |   |   |
| Commercial                   |   |                     | -      |   |                 |   | - |   |   |   |   |   |
| Consumer                     |   |                     | -      |   |                 |   | - |   |   |   |   |   |

|                         |   | Modifications           |   |   |                 |   |
|------------------------------|--------|-------------------------|--------|--------|----------------------|--------|
|                         |   | As of December 31, 2010 |   |   |                 |   |
|                         |   |                    |   |   |                 |   |   |   |   |
|                         |   |                    |   |   | Pre-Modification     |   |   | Post-Modification |   |
|                         |   |                    |   |   |                 |   |   | Outstanding |   |
|                         |   | Number of               |   |   | Outstanding Recorded |   |   | Recorded |   |
|                         |   | Contracts               |   |   | Investment           |   |   | Investment |   |
| Troubled Debt Restructurings |   |                    |   |   |                 |   |   |   |   |
| Real Estate:                 |   |                    |   |   |                 |   |   |   |   |
| 1-4 Family Residential       |   |                    | 6      |   |                 | $      | 2,283 |   |   | $ | 2,361 |   |
| Multi-family Residential     |   |                    | -      |   |                 |   | - |   |   |   | - |   |
| Construction                 |   |                    | -      |   |                 |   | - |   |   |   | - |   |
| Commercial                   |   |                    | -      |   |                 |   | - |   |   |   | - |   |
| Consumer                     |   |                    | -      |   |                 |   | - |   |   |   | - |   |
|                         |   |                    |   |   |                 |   |   |   |   |   |   |   |

----

|                         |   | Number of |   |   | Recorded   |   |
|------------------------------|--------|-----------|--------|--------|------------|--------|
|                         |   | Contracts |   |   | Investment |   |
| Troubled Debt Restructurings |   |      |   |   |       |   |
| That Subsequently Defaulted  |   |      |   |   |       |   |
|                         |   |      |   |   |       |   |
| Real Estate:                 |   |      |   |   |       |   |
| 1-4 Family Residential       |   |      | 3      |   |       | $      | 1,955 |   |
| Multi-family Residential     |   |      | -      |   |       |   | - |   |
| Construction                 |   |      | -      |   |       |   | - |   |
| Commercial                   |   |      | -      |   |       |   | - |   |
| Consumer                     |   |      | -      |   |       |   | - |   |

----

----

----

----

----

----

----

----

----

----

----

----

| ITEM 1. | Legal Proceedings |
|---------|-------------------|

| ITEM 1A. | Risk Factors |
|----------|--------------|

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

|                 |   |        |      |   |       |      |   | Total # of          |        |
|----------------------|--------|-------------|-----------|--------|------------|-----------|--------|---------------------|-------------|
|                 |   |        |      |   |       |      |   | shares purchased    |        |
|                 |   | Total       |      |   | Average    |      |   | as part of publicly |        |
|                 |   | # of shares |      |   | price paid |      |   | announced plans     |        |
| Period               |   |        | purchased |   |       | per share |   |                | or programs |   |
|                 |   |        |      |   |       |      |   |                |        |
| July 1-31, 2011      |   |        | -         |   |       | $         | -      |                |        |   | 86,766 |   |
| August 1-31, 2011    |   |        | -         |   |       | $         | -      |                |        |   | 86,766 |   |
| September 1-30, 2011 |   |        | -         |   |       | $         | -      |                |        |   | 86,766 |   |

| ITEM 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

|   |   Not applicable. |
|--------|------------------------|

| ITEM 4. | Removed and reserved |
|---------|----------------------|

| 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. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 6. | Exhibits (continued) |
|---------|----------------------|

|   | 101 | The following financial statements from Cheviot Financial Corp.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, filed on November 14, 2011, formatted in XBRL: (i) Consolidated Statements of Financial Condition, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Changes in Shareholders’ Equity, (iv) Consolidated Statements of Cash Flows, (v) the Notes to the Consolidated Financial Statements, tagged as blocks of text. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 101.INS | Interactive datafile | XBRL Instance Document |
|--------|---------|----------------------|------------------------|

|   | 101.SCH | Interactive datafile | XBRL Taxonomy Extension Schema Document |
|--------|---------|----------------------|-----------------------------------------|

|   | 101.CAL | Interactive datafile | XBRL Taxonomy Extension Calculation Linkbase Document |
|--------|---------|----------------------|-------------------------------------------------------|

|   | 101.DEF | Interactive datafile | XBRL Taxonomy Extension Definition Linkbase Document |
|--------|---------|----------------------|------------------------------------------------------|

|   | 101.LAB | Interactive datafile | XBRL Taxonomy Extension Label Linkbase |
|--------|---------|----------------------|----------------------------------------|

|   | 101.PRE | Interactive datafile | XBRL Taxonomy Extension Presentation Linkbase Document |
|--------|---------|----------------------|--------------------------------------------------------|

----

| Date:   November 14, 2011   | By:    | /s/Thomas J. Linneman                 |   |
|------------------------------------------------------|--------|---------------------------------------|--------|
|                                                 |   | Thomas J. Linneman                    |   |
|                                                 |   | President and Chief Executive Officer |   |

| Date:   November 14, 2011   | By:    | /s/Scott T. Smith       |   |
|------------------------------------------------------|--------|-------------------------|--------|
|                                                 |   | Scott T. Smith          |   |
|                                                 |   | Chief Financial Officer |   |