----

----

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

| For the quarterly period ended | March 31, 2011 |   |
|--------------------------------|----------------|--------|

| 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)                 |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o |
|---------------------------|--------|---------------------|--------|-------------------------|
|                      |   |                |   |                    |
| Small business issuer x   |   |                |   |                    |

----

|       |   |                                                                                        |   | 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 |   | 32     |
|       |   |                                                                                        |   |   |
|       |   | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 40     |
|       |   |                                                                                        |   |   |
|       |   | Controls and Procedures                                                                     |   | 40     |
|       |   |                                                                                        |   |   |
| PART II    | -      | OTHER INFORMATION                                                                           |   | 41     |
|       |   |                                                                                        |   |   |
| SIGNATURES |   |                                                                                        |   | 42     |

----

|                                                                                                                                                       |   |          |    |   |             |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
| ASSETS                                                                                                                                                     |   | March 31,2011 |    |   | December 31,2010 |   |
|                                                                                                                                                       |   | (Unaudited)   |    |   |             |   |
|                                                                                                                                                       |   |          |    |   |             |   |
| Cash and due from banks                                                                                                                                    |   | $             | 5,505   |   |             | $      | 5,776 |   |
| Federal funds sold                                                                                                                                         |   |          | 5,229   |   |             |   | 5,924 |   |
| Interest-earning deposits in other financial institutions                                                                                                  |   |          | 12,944  |   |             |   | 6,449 |   |
| Cash and cash equivalents                                                                                                                                  |   |          | 23,678  |   |             |   | 18,149 |   |
|                                                                                                                                                       |   |          |    |   |             |   |   |   |
| Investment securities available for sale – at fair value                                                                                             |   |          | 99,523  |   |             |   | 88,382 |   |
| Mortgage-backed securities available for sale - at fair value                                                                                              |   |          | 8,609   |   |             |   | 4,279 |   |
| Mortgage-backed securities held to maturity - at cost, approximate market value of $5,128 and $4,916 at March 31, 2011 and December 31, 2010, respectively |   |          | 4,619   |   |             |   | 4,779 |   |
| Loans receivable - net                                                                                                                                     |   |          | 409,230 |   |             |   | 220,998 |   |
| Loans held for sale - at lower of cost or market                                                                                                           |   |          | 5,148   |   |             |   | 4,440 |   |
| Real estate acquired through foreclosure - net                                                                                                             |   |          | 4,519   |   |             |   | 2,007 |   |
| Office premises and equipment - at depreciated cost                                                                                                        |   |          | 9,569   |   |             |   | 4,610 |   |
| Federal Home Loan Bank stock - at cost                                                                                                                     |   |          | 8,366   |   |             |   | 3,375 |   |
| Accrued interest receivable on loans                                                                                                                       |   |          | 1,784   |   |             |   | 925 |   |
| Accrued interest receivable on mortgage-backed securities                                                                                                  |   |          | 37      |   |             |   | 23 |   |
| Accrued interest receivable on investments and interest-earning deposits                                                                                   |   |          | 463     |   |             |   | 392 |   |
| Goodwill                                                                                                                                                   |   |          | 10,244  |   |             |   | - |   |
| Core deposit intangible                                                                                                                                    |   |          | 1,298   |   |             |   | - |   |
| Prepaid expenses and other assets                                                                                                                          |   |          | 4,731   |   |             |   | 1,510 |   |
| Bank-owned life insurance                                                                                                                                  |   |          | 10,079  |   |             |   | 3,791 |   |
| Prepaid federal income taxes                                                                                                                               |   |          | 749     |   |             |   | 409 |   |
| Deferred federal income taxes                                                                                                                              |   |          | 4,790   |   |             |   | - |   |
|                                                                                                                                                       |   |          |    |   |             |   |   |   |
| Total assets                                                                                                                                               |   | $             | 607,436 |   |             | $      | 358,069 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                 |   |          |    |   |             |   |   |   |
|                                                                                                                                                       |   |          |    |   |             |   |   |   |
| Deposits                                                                                                                                                   |   | $             | 481,052 |   |             | $      | 257,852 |   |
| Advances from the Federal Home Loan Bank                                                                                                                   |   |          | 46,997  |   |             |   | 27,300 |   |
| Other borrowings                                                                                                                                           |   |          | 1,490   |   |             |   | - |   |
| Advances by borrowers for taxes and insurance                                                                                                              |   |          | 2,217   |   |             |   | 1,440 |   |
| Accrued interest payable                                                                                                                                   |   |          | 195     |   |             |   | 99 |   |
| Accounts payable and other liabilities                                                                                                                     |   |          | 5,725   |   |             |   | 1,955 |   |
| Deferred federal income taxes                                                                                                                              |   |          | -       |   |             |   | 4 |   |
| Total liabilities                                                                                                                                          |   |          | 537,676 |   |             |   | 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 March 31, 2011 and December 31, 2010                                |   |          | 99      |   |             |   | 99 |   |
| Additional paid-in capital                                                                                                                                 |   |          | 43,875  |   |             |   | 43,878 |   |
| Shares acquired by stock benefit plans                                                                                                                     |   |          | (1,302  | )      |             |   | (1,302 | ) |
| Treasury stock - at cost, 1,053,843 shares at March 31, 2011 and December 31, 2010                                                                         |   |          | (12,859 | )      |             |   | (12,860 | ) |
| Retained earnings - restricted                                                                                                                             |   |          | 40,798  |   |             |   | 40,655 |   |
| Accumulated comprehensive loss, unrealized losses on securities available for sale, net of related tax benefits                                            |   |          | (851    | )      |             |   | (1,051 | ) |
| Total shareholders’ equity                                                                                                                           |   |          | 69,760  |   |             |   | 69,419 |   |
|                                                                                                                                                       |   |          |    |   |             |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                           |   | $             | 607,436 |   |             | $      | 358,069 |   |

----

|                                                                 |   | 2011   |   |   | 2010   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest income                                                      |   |   |   |   |   |   |
|   Loans                                                    |   | $      | 3,390  |   |   | $      | 3,508 |   |
|   Mortgage-backed securities                               |   |   | 50     |   |   |   | 86 |   |
|   Investment securities                                    |   |   | 457    |   |   |   | 373 |   |
|   Interest-earning deposits and other                      |   |   | 50     |   |   |   | 40 |   |
| Total interest income                                                |   |   | 3,947  |   |   |   | 4,007 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Interest expense                                                     |   |   |   |   |   |   |   |   |
|   Deposits                                                 |   |   | 926    |   |   |   | 915 |   |
|   Borrowings                                               |   |   | 279    |   |   |   | 366 |   |
| Total interest expense                                               |   |   | 1,205  |   |   |   | 1,281 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net interest income                                                  |   |   | 2,742  |   |   |   | 2,726 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Provision for losses on loans                                        |   |   | 150    |   |   |   | 40 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net interest income after provision for                              |   |   |   |   |   |   |   |   |
| losses on loans                                                      |   |   | 2,592  |   |   |   | 2,686 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Other income                                                         |   |   |   |   |   |   |   |   |
|   Rental                                                   |   |   | 20     |   |   |   | 16 |   |
|   Loss on sale of real estate acquired through foreclosure |   |   | (12    | )      |   |   | - |   |
|   Gain on sale of loans                                    |   |   | 46     |   |   |   | 36 |   |
|   Earnings on bank-owned life insurance                    |   |   | 39     |   |   |   | 35 |   |
|   Other operating                                          |   |   | 167    |   |   |   | 95 |   |
| Total other income                                                   |   |   | 260    |   |   |   | 182 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| General, administrative and other expense                            |   |   |   |   |   |   |   |   |
|   Employee compensation and benefits                       |   |   | 1,135  |   |   |   | 1,160 |   |
|   Occupancy and equipment                                  |   |   | 162    |   |   |   | 164 |   |
|   Property, payroll and other taxes                        |   |   | 278    |   |   |   | 245 |   |
|   Data processing                                          |   |   | 79     |   |   |   | 61 |   |
|   Legal and professional                                   |   |   | 223    |   |   |   | 129 |   |
|   Advertising                                              |   |   | 77     |   |   |   | 50 |   |
|   FDIC expense                                             |   |   | 127    |   |   |   | 71 |   |
|   Other operating                                          |   |   | 219    |   |   |   | 218 |   |
| Total general, administrative and other expense                      |   |   | 2,300  |   |   |   | 2,098 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Earnings before federal income taxes                                 |   |   | 552    |   |   |   | 770 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Federal income taxes                                                 |   |   |   |   |   |   |   |   |
|   Current                                                  |   |   | 166    |   |   |   | 302 |   |
|   Deferred                                                 |   |   | (166   | )      |   |   | (35 | ) |
| Total federal income taxes                                           |   |   | -      |   |   |   | 267 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| NET EARNINGS                                                         |   | $      | 552    |   |   | $      | 503 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| EARNINGS PER SHARE                                                   |   |   |   |   |   |   |   |   |
| Basic                                                                |   | $      | .06    |   |   | $      | .06 |   |
| Diluted                                                              |   | $      | .06    |   |   | $      | .06 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Dividends declared per share                                         |   | $      | .12    |   |   | $      | .11 |   |

----

|                                                                                                                                                     |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                     |   | 2011   |   |   | 2010   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Net earnings for the period                                                                                                                              |   | $      | 552    |   |   | $      | 503 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of related tax expense:                                                                                                  |   |   |   |   |   |   |   |   |
| Unrealized holding gains on securities during the period, net of tax expense of $103 and $86 for the periods ended March 31, 2011 and 2010, respectively |   |   | 200    |   |   |   | 167 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                                     |   | $      | 752    |   |   | $      | 670 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Accumulated comprehensive loss                                                                                                                           |   | $      | (851   | )      |   | $      | (213 | ) |

----

|                                                                                          |   |   |    |   |   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                          |   | 2011   |    |   | 2010   |   |
| Cash flows from operating activities:                                                         |   |   |    |   |   |   |
| Net earnings for the period                                                                   |   | $      | 552     |   |   | $      | 503 |   |
| Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: |   |   |    |   |   |   |   |   |
| Amortization of premiums and discounts on investment and mortgage-backed securities, net      |   |   | 5       |   |   |   | 10 |   |
| Depreciation                                                                                  |   |   | 69      |   |   |   | 80 |   |
| Amortization of deferred loan origination costs (fees) - net                                  |   |   | 55      |   |   |   | (3 | ) |
| Proceeds from sale of loans in the secondary market                                           |   |   | 9,524   |   |   |   | 2,756 |   |
| Loans originated for sale in the secondary market                                             |   |   | (5,925  | )      |   |   | (2,720 | ) |
| Gain on sale of loans                                                                         |   |   | (46     | )      |   |   | (36 | ) |
| Amortization of expense related to stock benefit plans                                        |   |   | (8      | )      |   |   | (11 | ) |
| Provision for losses on loans                                                                 |   |   | 150     |   |   |   | 40 |   |
| Federal Home Loan Bank stock dividends                                                        |   |   | -       |   |   |   | (6 | ) |
| Loss on real estate acquired through foreclosure                                              |   |   | 12      |   |   |   | - |   |
| Impairment on real estate acquired through foreclosure                                        |   |   | -       |   |   |   | 81 |   |
| Net increase in cash surrender value of bank-owned life insurance, net of acquisition         |   |   | (39     | )      |   |   | (34 | ) |
| Increase (decrease) in cash, net of acquisition, due to changes in:                           |   |   |    |   |   |   |   |   |
| Accrued interest receivable on loans                                                          |   |   | (142    | )      |   |   | (1 | ) |
| Accrued interest receivable on mortgage-backed securities                                     |   |   | 11      |   |   |   | 3 |   |
| Accrued interest receivable on investments and interest-earning deposits                      |   |   | 57      |   |   |   | (95 | ) |
| Prepaid expenses and other assets                                                             |   |   | (151    | )      |   |   | (268 | ) |
| Accrued interest payable                                                                      |   |   | (660    | )      |   |   | 3 |   |
| Accounts payable and other liabilities                                                        |   |   | (828    | )      |   |   | 65 |   |
| Federal income taxes                                                                          |   |   |    |   |   |   |   |   |
| Current                                                                                       |   |   | 831     |   |   |   | 207 |   |
| Deferred                                                                                      |   |   | (166    | )      |   |   | (35 | ) |
| Net cash flows provided by operating activities                                               |   |   | 3,301   |   |   |   | 539 |   |
|                                                                                          |   |   |    |   |   |   |   |   |
| Cash flows provided by (used in) investing activities:                                        |   |   |    |   |   |   |   |   |
| Principal repayments on loans                                                                 |   |   | 11,522  |   |   |   | 10,112 |   |
| Loan disbursements                                                                            |   |   | (8,038  | )      |   |   | (5,697 | ) |
| Purchase of investment securities – available for sale                                  |   |   | -       |   |   |   | (32,196 | ) |
| Proceeds from maturity of investment securities – available for sale                    |   |   | 5,000   |   |   |   | 14,901 |   |
| Principal repayments on mortgage-backed securities – available for sale                 |   |   | 337     |   |   |   | 151 |   |
| Principal repayments on mortgage-backed securities – held to maturity                   |   |   | 159     |   |   |   | 261 |   |
| Proceeds from the sale of real estate acquired through foreclosure                            |   |   | 314     |   |   |   | - |   |
| Purchase of office premises and equipment                                                     |   |   | (102    | )      |   |   | - |   |
| Cash paid for acquisition, net of cash received                                               |   |   | (4,200  | )      |   |   | - |   |
| Net cash flows provided by (used in) investing activities                                     |   |   | 4,992   |   |   |   | (12,468 | ) |
|                                                                                          |   |   |    |   |   |   |   |   |
| Cash flows provided by (used in) financing activities:                                        |   |   |    |   |   |   |   |   |
| Net increase in deposits, net of acquisition                                                  |   |   | 1,673   |   |   |   | 3,046 |   |
| Proceeds from Federal Home Loan Bank advances                                                 |   |   | 11,000  |   |   |   | 10,000 |   |
| Repayments on Federal Home Loan Bank advances                                                 |   |   | (14,519 | )      |   |   | (5,451 | ) |
| Advances by borrowers for taxes and insurance, net of acquisition                             |   |   | (515    | )      |   |   | (493 | ) |
| Stock option expense, net                                                                     |   |   | 5       |   |   |   | 62 |   |
| Dividends paid on common stock                                                                |   |   | (408    | )      |   |   | (374 | ) |
| Net cash flows provided by (used in) financing activities                                     |   |   | (2,764  | )      |   |   | 6,790 |   |
|                                                                                          |   |   |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                          |   |   | 5,529   |   |   |   | (5,139 | ) |
|                                                                                          |   |   |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                              |   |   | 18,149  |   |   |   | 11,283 |   |
|                                                                                          |   |   |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                    |   | $      | 23,678  |   |   | $      | 6,144 |   |

----

|                                                            |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                            |   | 2011   |   |   | 2010   |   |
|                                                            |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:               |   |   |   |   |   |   |
| Cash paid during the period for:                                |   |   |   |   |   |   |
| Federal income taxes                                            |   | $      | 120    |   |   | $      | 95 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Interest on deposits and borrowings                             |   | $      | 1,109  |   |   | $      | 1,279 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash investing activities:       |   |   |   |   |   |   |   |   |
| Transfer from loans to real estate acquired through foreclosure |   | $      | 435    |   |   | $      | 23 |   |
|                                                            |   |   |   |   |   |   |   |   |
| Recognition of mortgage servicing rights                        |   | $      | 62     |   |   | $      | 22 |   |

----

----

|                                                  |   | Payments due by period |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   | Lessthan1 year         |    |   | More than1-3years |   |   | More than4-5years |   |   | Morethan5 years |   |   | Total |   |
|                                                  |   | (In thousands)         |    |
| Contractual obligations:                              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Advances from the Federal Home Loan Bank              |   | $                      | 9,758   |   |   | $ | 2,662 |   |   | $ | 8,505 |   |   | $ | 26,072 |   |   | $ | 46,997 |   |
| Certificates of deposit                               |   |                   | 153,177 |   |   |   | 69,691 |   |   |   | 59,653 |   |   |   | 9 |   |   |   | 282,530 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of loan commitments and expiration per period: |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to originate one- to four-family loans    |   |                   | 516     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 516 |   |
| Home equity lines of credit                           |   |                   | 32,450  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 32,450 |   |
| Commercial lines of credit                            |   |                   | 526     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 526 |   |
| Undisbursed loans in process                          |   |                   | 3,029   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,029 |   |
| Lease obligations                                     |   |                   | 132     |   |   |   | 276 |   |   |   | 290 |   |   |   | 1,518 |   |   |   | 2,216 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations                         |   | $                      | 199,588 |   |   | $ | 72,629 |   |   | $ | 68,448 |   |   | $ | 27,599 |   |   | $ | 368,264 |   |

----

|                                                 |   |                                |      |   |   |   |
|------------------------------------------------------|--------|-------------------------------------|-----------|--------|--------|--------|
|                                                 |   | For the three months endedMarch 31, |      |
|                                                 |   | 2011                                |      |   | 2010   |   |
|                                                 |   |                                |      |   |   |   |
| Weighted-average common shares outstanding (basic)   |   |                                | 8,757,782 |   |   |   | 8,725,873 |   |
|                                                 |   |                                |      |   |   |   |   |   |
| Dilutive effect of assumed exercise of stock options |   |                                | 7,927     |   |   |   | 7,919 |   |
|                                                 |   |                                |      |   |   |   |   |   |
| Weighted-average common shares outstanding (diluted) |   |                                | 8,765,709 |   |   |   | 8,733,792 |   |

----

|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
|-----------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------------------|--------|--------|--------|--------|--------|-------------------------------|--------|--------|-----------|----------------|--------|
|                                                                        |   | Three months endedMarch 31, 2011 |    |   | Year endedDecember 31, 2010   |   |
|                                                                        |   | Shares                           |    |   | Weighted-averageexerciseprice |   |   | Shares |   |   | Weighted-averageexerciseprice |   |
|  Outstanding at beginning of period                                    |   |                             | 421,200 |   |                          | $      | 11.05  |   |   |   | 412,340                       |   |   | $         | 11.17          |   |
| Granted                                                                     |   |                             | -       |   |                          |   | -      |   |   |   | 8,860                         |   |   |      | 8.07           |   |
| Exercised                                                                   |   |                             | -       |   |                          |   | -      |   |   |   | -                             |   |   |      | -              |   |
| Forfeited                                                                   |   |                             | -       |   |                          |   | -      |   |   |   | -                             |   |   |      | -              |   |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| Outstanding at end of period                                                |   |                             | 421,200 |   |                          | $      | 11.05  |   |   |   | 421,200                       |   |   | $         | 11.05          |   |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| Options exercisable at period-end                                           |   |                             | 397,260 |   |                          | $      | 11.16  |   |   |   | 397,260                       |   |   | $         | 11.16          |   |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| Options expected to be exercisable at year-end                              |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| Fair value of options granted                                               |   |                             |    |   |                          | NA     |   |   |   |   |                          |   | $      | 4.83      |           |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| The following information applies to options outstanding at March 31, 2011: |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
|                                                                        |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      |           |   |
| Number outstanding                                                          |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      | 421,200        |   |
| Exercise price                                                              |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      | $8.07 - $13.63 |   |
| Weighted-average exercise price                                             |   |                             |    |   |                          |   |   |   |   |   |                          |   |   |      | $11.05         |   |
| Weighted-average remaining contractual life                                 |   |                             |    |   |                          |   |   |   |   |   |                          |   |   | 4.4 years |           |

----

|                              | March 31, 2011    |   |
|-----------------------------------|-------------------|--------|
|                              | Amortizedcost     |   | Grossunrealizedgains |   | Grossunrealizedlosses |   | Estimatedfairvalue |   |
|                              | (In thousands)    |   |
| Available for Sale:               |              |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency securities |              | $      | 97,818 |   |   | $ | 112 |   |   | $ | 1,430 |   |   | $ | 96,500 |   |
| Municipal obligations             |              |   | 3,143 |   |   |   | 41 |   |   |   | 161 |   |   |   | 3,023 |   |
|                              |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |              | $      | 100,961 |   |   | $ | 153 |   |   | $ | 1,591 |   |   | $ | 99,523 |   |
|                              |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |              |   |
|                              | December 31, 2010 |   |
|                              | Amortizedcost     |   | Grossunrealizedgains |   | Grossunrealizedlosses |   | Estimatedfairvalue |   |
|                              | (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 |   |

|                |   |           |    |   |
|---------------------|--------|----------------|---------|--------|
|                |   | March 31,      |    |
|                |   | 2011           |    |
|                |   | (In thousands) |    |
| Less than one year  |   | $              | 24,136  |   |
| One to five years   |   |           | 49,245  |   |
| Five to ten years   |   |           | 15,684  |   |
| More than ten years |   |           | 11,896  |   |
|                |   |           |    |   |
|                |   | $              | 100,961 |   |

----

|                                                                                |   | March 31, 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   |   | $              | 1,276  |   |   | $ | 32 |   |   | $ | - |   |   | $ | 1,308 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |           | 3,305  |   |   |   | 15 |   |   |   | 3 |   |   |   | 3,317 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |           | 3,878  |   |   |   | 106 |   |   |   | - |   |   |   | 3,984 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | $              | 8,459  |   |   | $ | 153 |   |   | $ | 3 |   |   | $ | 8,609 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity:                                                                   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal Home Loan Mortgage Corporation adjustable-rate participation certificates   |   | $              | 441    |   |   | $ | 57 |   |   | $ | - |   |   | $ | 498 |   |
| Federal National Mortgage Association adjustable-rate participation certificates    |   |           | 489    |   |   |   | 62 |   |   |   | - |   |   |   | 551 |   |
| Government National Mortgage Association adjustable-rate participation certificates |   |           | 3,689  |   |   |   | 395 |   |   |   | 5 |   |   |   | 4,079 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | $              | 4,619  |   |   | $ | 514 |   |   | $ | 5 |   |   | $ | 5,128 |   |

|                                                                                |   | 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 |   |

----

|                                                                                |   | December 31, 2010 |   |
|-------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                |   |              |   |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                                                                |   | Amortized         |   |   | unrealized |   |   | unrealized |   |   | fair |   |
|                                                                                |   | cost              |   |   | gains |   |   | losses |   |   | value |   |
|                                                                                |   | (In thousands)    |   |
| 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 |   |

|                                |   | March 31,      |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | 2011           |   |
|                                |   | (In thousands) |   |
|                                |   |           |   |
| Due in one year or less             |   | $              | 526    |   |
| Due in one year through five years  |   |           | 2,287  |   |
| Due in five years through ten years |   |           | 3,312  |   |
| Due in more than ten years          |   |           | 6,953  |   |
|                                |   |           |   |   |
|                                |   | $              | 13,078 |   |

|                                  |   |                   |   |   |                |   |   |       |   |   |        |   |   |   |   |   |       |   |   |        |   |   |   |   |   |       |   |
|---------------------------------------|--------|------------------------|--------|--------|---------------------|--------|--------|------------|--------|--------|-------------|--------|--------|--------|--------|--------|------------|--------|--------|-------------|--------|--------|--------|--------|--------|------------|--------|
|                                  |   | 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     |   |                   | 28     |   |                | $      | 71,375 |       |   | $      | 1,430       |   |   |   | -      |   |       | $      | -      |        |   | $      | -      |   |   |       | 28     |   |   | $ | 71,375 |   |   | $ | 1,430 |   |
| Municipal obligations                 |   |                   | 6      |   |                |   | 659    |       |   |   | 21          |   |   |   | 2      |   |       |   | 1,095  |        |   |   | 140    |   |   |       | 8      |   |   |   | 1,754 |   |   |   | 161 |   |
| Mortgage-backed securities            |   |                   | 25     |   |                |   | 360    |       |   |   | 8           |   |   |   | -      |   |       |   | -      |        |   |   | -      |   |   |       | 25     |   |   |   | 360 |   |   |   | 8 |   |
|                                  |   |                   |   |   |                |   |   |       |   |   |        |   |   |   |   |   |       |   |   |        |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Total temporarily impaired securities |   |                   | 59     |   |                | $      | 72,394 |       |   | $      | 1,459       |   |   |   | 2      |   |       | $      | 1,095  |        |   | $      | 140    |   |   |       | 61     |   |   | $ | 73,489 |   |   | $ | 1,599 |   |

----

----

|                                                                 |   |                   |   |   |   |   |
|----------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                 |   | 2011                   |   |   | 2010   |   |
|                                                                 |   | (Dollars in thousands) |   |
| Federal income taxes at statutory rate of 34%                        |   | $                      | 188    |   |   | $      | 262 |   |
| Increase (decrease) in taxes resulting primarily from:               |   |                   |   |   |   |   |   |   |
| Stock compensation                                                   |   |                   | (4     | )      |   |   | 23 |   |
| Nontaxable interest income                                           |   |                   | (6     | )      |   |   | (5 | ) |
| Cash surrender value of life insurance                               |   |                   | (13    | )      |   |   | (12 | ) |
| Utilization of net operating loss carryforwards, previously reserved |   |                   | (166   | )      |   |   | - |   |
| Other                                                                |   |                   | 1      |   |   |   | (1 | ) |
|                                                                 |   |                   |   |   |   |   |   |   |
| Federal income taxes per financial statements                        |   | $                      | -      |   |   | $      | 267 |   |
|                                                                 |   |                   |   |   |   |   |   |   |
| Effective tax rate                                                   |   |                   | 0      | %      |   |   | 34.7 | % |
|                                                                 |   |                   |   |   |   |   |   |   |

|   | 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 March 31, 2011:    |   |          |   |   |        |   |   |         |   |
| U.S. Government agency securities                   |   | -             |   |   |        | $      | 96,500 |         |   | - |   |   |
| Municipal obligations                               |   | -             |   |   |        | $      | 3,023  |         |   | - |   |   |
| Mortgage-backed securities                          |   | -             |   |   |        | $      | 8,609  |         |   | - |   |   |
|                                                |   |          |   |   |        |   |   |         |   |   |   |   |
| 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 March 31, 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 March 31, 2011, the fair value of the derivative loan commitments was not material. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   |           |    |   |              |   |    |          |   |   |      |   |
|-----------------------------------------------|--------|----------------|---------|--------|-------------------|--------|---------|---------------|--------|--------|-----------|--------|
|                                          |   | March 31, 2011 |    |   | December 31, 2010 |   |
|                                          |   | CarryingValue  |    |   | FairValue         |   |    | CarryingValue |   |   | FairValue |   |
|                                          |   | (In thousands) |    |   | (In thousands)    |   |
| Financial assets                              |   |           |    |   |              |   |    |          |   |   |      |   |
| Cash and cash equivalents                     |   | $              | 23,678  |   |              | $      | 23,678  |          |   | $      | 18,149    |   |   | $ | 18,149 |   |
| Investment securities                         |   |           | 99,523  |   |              |   | 99,523  |          |   |   | 88,382    |   |   |   | 88,382 |   |
| Mortgage-backed securities                    |   |           | 13,228  |   |              |   | 13,737  |          |   |   | 9,058     |   |   |   | 9,195 |   |
| Loans receivable - net                        |   |           | 414,378 |   |              |   | 422,727 |          |   |   | 225,438   |   |   |   | 233,272 |   |
| Federal Home Loan Bank stock                  |   |           | 8,366   |   |              |   | 8,366   |          |   |   | 3,375     |   |   |   | 3,375 |   |
|                                          |   |           |    |   |              |   |    |          |   |   |      |   |   |   |   |   |
|                                          |   | $              | 559,173 |   |              | $      | 568,031 |          |   | $      | 344,402   |   |   | $ | 352,373 |   |
|                                          |   |           |    |   |              |   |    |          |   |   |      |   |   |   |   |   |
| Financial liabilities                         |   |           |    |   |              |   |    |          |   |   |      |   |   |   |   |   |
| Deposits                                      |   | $              | 481,052 |   |              | $      | 481,304 |          |   | $      | 257,852   |   |   | $ | 257,672 |   |
| Advances from the Federal Home Loan Bank      |   |           | 46,997  |   |              |   | 48,323  |          |   |   | 27,300    |   |   |   | 30,597 |   |
| Advances by borrowers for taxes and insurance |   |           | 2,217   |   |              |   | 2,217   |          |   |   | 1,440     |   |   |   | 1,440 |   |
|                                          |   |           |    |   |              |   |    |          |   |   |      |   |   |   |   |   |
|                                          |   | $              | 530,266 |   |              | $      | 531,844 |          |   | $      | 286,592   |   |   | $ | 289,709 |   |

----

----

|                                                                          |   |   |   |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|
| Purchase Price                                                                |   |   |   |   |
| First Franklin common shares outstanding (in millions)                        |   |   | 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                               |   |   | 131    |   |
|                                                                          |   |   |   |   |
| Total purchase price                                                          |   | $      | 24,680 |   |
|                                                                          |   |   |   |   |
| Allocation of purchase price                                                  |   |   |   |   |
| Stockholders’ equity                                                    |   | $      | 16,365 |   |
|                                                                          |   |   |   |   |
| Pre-tax adjustments to reflect acquired assets and liabilities at fair value: |   |   |   |   |
| Loans receivable                                                              |   |   | 2,365  |   |
| 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    |   |
| Other assets/liabilities                                                      |   |   | (427   | )      |
| Pre-tax total adjustments                                                     |   |   | 2,976  |   |
|                                                                          |   |   |   |   |
| Deferred income taxes                                                         |   |   | (1,047 | )      |
| After-tax total adjustments                                                   |   |   | 1,929  |   |
| Fair value of net assets acquired                                             |   |   | 14,436 |   |
|                                                                          |   |   |   |   |
| Goodwill resulting from the First Franklin acquisition                        |   | $      | 10,244 |   |

----

|                                     |   |           |    |   |
|------------------------------------------|--------|----------------|---------|--------|
|                                     |   | March 16,2011  |    |
|                                     |   | (in thousands) |    |
| Assets:                                  |   |           |    |   |
| Cash and cash equivalents                |   | $              | 20,480  |   |
| Investment securities                    |   |           | 15,618  |   |
| Mortgage-backed securities               |   |           | 4,497   |   |
| Loans receivable – net             |   |           | 196,618 |   |
| Real estate acquired through foreclosure |   |           | 2,404   |   |
| Office premises and equipment            |   |           | 4,927   |   |
| Goodwill and intangible assets           |   |           | 11,542  |   |
|                                     |   |           |    |   |
| Other assets                             |   |           | 21,475  |   |
| 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   |   | $      | 270    |   |
|   | 2012   |   |   | 282    |   |
|   | 2013   |   |   | 206    |   |
|   | 2014   |   |   | 149    |   |
|   | 2015   |   |   | 116    |   |
|   | 2016   |   |   | 110    |   |
|   | 2017   |   |   | 110    |   |
|   | 2018   |   |   | 55     |   |
| Total  |   |   | $      | 1,298  |   |

|                             |                                       |   |          |   |                    |   |              |   |   |   |   |   |
|----------------------------------|--------------------------------------------|--------|---------------|--------|-------------------------|--------|-------------------|--------|--------|--------|--------|--------|
|                             | Quarter Ended March 31, 2011(in thousands) |   |
|                             | CheviotFinancial                           |   | FirstFranklin |   | Pro-Forma(1)Adjustments |   | Pro FormaCombined |   |
| Revenue                          |                                       | $      | 4,207         |   |                    | $      | 3,270             |   |   | $      | -      |   |   | $ | 7,477 |   |
|                             |                                       |   |          |   |                    |   |              |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)              |                                       | $      | 552           |   |                    | $      | (1,846            | )      |   | $      | (2,508 | )      |   | $ | (3,802 | ) |
|                             |                                       |   |          |   |                    |   |              |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share |                                       |   |          |   |                    |   |              |   |   |   |   |   |   | $ | (.43 | ) |

|                             | Quarter Ended March 31, 2010(in thousands) |   |
|----------------------------------|--------------------------------------------|--------|
|                             | CheviotFinancial                           |   | FirstFranklin |   | Pro-Forma(1)Adjustments |   | Pro FormaCombined |   |
| Revenue                          |                                       | $      | 4,189 |   |   | $ | 4,301 |   |   | $ | - |   |   | $ | 8,490 |   |
|                             |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)              |                                       | $      | 503 |   |   | $ | (82 | ) |   | $ | (2,508 | ) |   | $ | (2,087 | ) |
|                             |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share |                                       |   |   |   |   |   |   |   |   |   |   |   |   | $ | (.24 | ) |

----

|                       |   | One-to fourFamilyResidential |    |   | Multi-familyResidential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total  |   |
|----------------------------|--------|------------------------------|---------|--------|-------------------------|--------|--------|--------------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|
| Purchased loans            |   | $                            | 136,691 |   |                    | $      | 15,537 |         |   | $      | -          |   |   | $        | 44,887 |   |   | $      | 5,263 |   |   | $ | 202,378 |   |
| Credit quality discount    |   |                         | (2,737  | )      |                    |   | (208   | )            |   |   | -          |   |   |     | (2,370 | )      |   |   | (1,808 | ) |   |   | (7,123 | ) |
| Purchased loans book value |   |                         | 133,954 |   |                    |   | 15,329 |         |   |   | -          |   |   |     | 42,517 |   |   |   | 3,455 |   |   |   | 195,255 |   |
| Originated loans (1)       |   |                         | 188,572 |   |                    |   | 8,255  |         |   |   | 5,609      | (2 )   |   |     | 19,650 |   |   |   | 237 |   |   |   | 222,323 |   |
| Ending balance             |   | $                            | 322,526 |   |                    | $      | 23,584 |         |   | $      | 5,609      |   |   | $        | 62,167 |   |   | $      | 3,692 |   |   | $ | 417,578 |   |

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

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

|                           |   | Non-impairedPurchased Loans |    |   | CreditImpairedPurchased Loans |   |
|--------------------------------|--------|-----------------------------|---------|--------|-------------------------------|--------|
|                           |   |                        |    |   |                          |   |
| One-to-four family residential |   | $                           | 125,777 |   |                          | $      | 8,177 |   |
| Multi-family residential       |   |                        | 14,219  |   |                          |   | 1,110 |   |
| Construction                   |   |                        | -       |   |                          |   | - |   |
| Commercial                     |   |                        | 33,602  |   |                          |   | 8,915 |   |
| Consumer                       |   |                        | 2,178   |   |                          |   | 1,277 |   |
| Total                          |   | $                           | 175,776 |   |                          | $      | 19,479 |   |

|                                            |   | March 31, 2011               |    |
|-------------------------------------------------|--------|------------------------------|---------|
|                                            |   | One-to fourFamilyResidential |    |   | Multi-familyResidential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|                                            |   |
| Allowance for loan losses:                      |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                               |   | $                            | 979     |   |   | $ | 49 |   |   | $ | 33 |   |   | $ | 180 |   |   | $ | 1 |   |   | $ | 1,242 |   |
| Provision                                       |   |                         | 49      |   |   |   | 73 |   |   |   | - |   |   |   | 26 |   |   |   | 2 |   |   |   | 150 |   |
| Charge-offs                                     |   |                         | (26     | ) |   |   | - |   |   |   | (21 | ) |   |   | - |   |   |   | - |   |   |   | (47 | ) |
| Recoveries                                      |   |                         | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |   | $                            | 1,002   |   |   | $ | 122 |   |   | $ | 12 |   |   | $ | 206 |   |   | $ | 3 |   |   | $ | 1,345 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment           |   | $                            | 356     |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 356 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |   | $                            | 646     |   |   | $ | 122 |   |   | $ | 12 |   |   | $ | 206 |   |   | $ | 3 |   |   | $ | 989 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable:                               |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |   | $                            | 322,526 |   |   | $ | 23,584 |   |   | $ | 5,609 |   |   | $ | 62,167 |   |   | $ | 3,692 |   |   | $ | 417,578 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment (1)       |   | $                            | 131,209 |   |   | $ | 14,219 |   |   | $ | - |   |   | $ | 33,824 |   |   | $ | 2,178 |   |   | $ | 181,430 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment           |   | $                            | 183,140 |   |   | $ | 8,255 |   |   | $ | 5,609 |   |   | $ | 19,428 |   |   | $ | 237 |   |   | $ | 216,669 |   |
|                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance:                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans acquired with deteriorated credit quality |   | $                            | 8,177   |   |   | $ | 1,110 |   |   | $ | - |   |   | $ | 8,915 |   |   | $ | 1,277 |   |   | $ | 19,479 |   |

----

|                                            |   | 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 March 31, 2011 |    |
|-----------------|--------|------------------------------------|---------|
|            |   | One-to fourFamilyResidential       |    |   | Multi-familyResidential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|            |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grade:          |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                                  | 183,140 |   |   | $ | 8,255 |   |   | $ | 5,609 |   |   | $ | 19,428 |   |   | $ | 237 |   |   | $ | 216,669 |   |
| Special mention |   |                               | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Substandard     |   |                               | 5,432   |   |   |   | - |   |   |   | - |   |   |   | 222 |   |   |   | - |   |   |   | 5,654 |   |
| Doubtful        |   |                               | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |                               | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total           |   | $                                  | 188,572 |   |   | $ | 8,255 |   |   | $ | 5,609 |   |   | $ | 19,650 |   |   | $ | 237 |   |   | $ | 222,323 |   |

----

|            |   | Loans Receivable at December 31, 2010 |    |
|-----------------|--------|---------------------------------------|---------|
|            |   | One-to fourFamilyResidential          |    |   | Multi-familyResidential |   |   | 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 March 31, 2011 |    |
|-----------------|--------|-----------------------------------|---------|
|            |   | One-to fourFamilyResidential      |    |   | Multi-familyResidential |   |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Total |   |
|            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grade:          |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pass            |   | $                                 | 120,862 |   |   | $ | 15,007 |   |   | $ | - |   |   | $ | 32,983 |   |   | $ | 5,207 |   |   | $ | 174,059 |   |
| Special mention |   |                              | 2,685   |   |   |   | 107 |   |   |   | - |   |   |   | 7,670 |   |   |   | 30 |   |   |   | 10,492 |   |
| Substandard     |   |                              | 6,066   |   |   |   | 424 |   |   |   | - |   |   |   | 4,235 |   |   |   | 406 |   |   |   | 11,131 |   |
| Doubtful        |   |                              | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss            |   |                              | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total           |   | $                                 | 129,613 |   |   | $ | 15,538 |   |   | $ | - |   |   | $ | 44,888 |   |   | $ | 5,643 |   |   | $ | 195,682 |   |

|                     |   | 30-89 DaysPast Due |   |   | Over 90 daysPast Due |   |   | Total PastDue |   |   | Current andAccruing |   |   | Nonaccrual |    |   | TotalLoans |   |   | RecordedInvestment90 Days andAccruing |   |
|--------------------------|--------|--------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|---------------------|--------|--------|------------|---------|--------|------------|--------|--------|---------------------------------------|--------|
|                     |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| Real Estate:             |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| 1-4 family Residential   |   | $                  | 670    |   |                 | $      | 4,104  |          |   | $      | 4,774               |   |   | $          | 184,468 |   |       | $      | 4,104  |                                  |   | $ | 188,572 |   |   |   | - |   |
| Multi-family Residential |   |               | -      |   |                 |   | -      |          |   |   | -                   |   |   |       | 8,255   |   |       |   | -      |                                  |   |   | 8,255 |   |   |   | - |   |
| Construction             |   |               | -      |   |                 |   | -      |          |   |   | -                   |   |   |       | 5,609   |   |       |   | -      |                                  |   |   | 5,609 |   |   |   | - |   |
| Commercial               |   |               | 54     |   |                 |   | 205    |          |   |   | 259                 |   |   |       | 19,445  |   |       |   | 205    |                                  |   |   | 19,650 |   |   |   | - |   |
| Consumer                 |   |               | -      |   |                 |   | -      |          |   |   | -                   |   |   |       | 237     |   |       |   | -      |                                  |   |   | 237 |   |   |   | - |   |
| Total                    |   | $                  | 724    |   |                 | $      | 4,309  |          |   | $      | 5,033               |   |   | $          | 218,014 |   |       | $      | 4,309  |                                  |   | $ | 222,323 |   |   |   | - |   |

----

|                     |   | 30-89 DaysPast Due |   |   | Over 90 daysPast Due |   |   | Total PastDue |   |   | Current andaccruing |   |   | Nonaccrual |    |   | TotalLoans |   |   | RecordedInvestment90 Days andAccruing |   |
|--------------------------|--------|--------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|---------------------|--------|--------|------------|---------|--------|------------|--------|--------|---------------------------------------|--------|
|                     |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| Real Estate:             |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| 1-4 family Residential   |   | $                  | 1,017  |   |                 | $      | 4,695  |          |   | $      | 5,712               |   |   | $          | 191,106 |   |       | $      | 4,695  |                                  |   | $ | 195,801 |   |   |   | - |   |
| Multi-family Residential |   |               | -      |   |                 |   | -      |          |   |   | -                   |   |   |       | 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 |   |   |   | - |   |

|                     |   | 30-89 DaysPast Due |   |   | Over 90 daysPast Due |   |   | Total PastDue |   |   | Current andAccruing |   |   | Nonaccrual |    |   | TotalLoans |   |   | RecordedInvestment90 Days andAccruing |   |
|--------------------------|--------|--------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|---------------------|--------|--------|------------|---------|--------|------------|--------|--------|---------------------------------------|--------|
|                     |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| Real Estate:             |   |               |   |   |                 |   |   |          |   |   |                |   |   |       |    |   |       |   |   |                                  |   |
| 1-4 family Residential   |   | $                  | 873    |   |                 | $      | 4,790  |          |   | $      | 5,663               |   |   | $          | 129,164 |   |       | $      | 4,790  |                                  |   | $ | 133,954 |   |   |   | - |   |
| Multi-family Residential |   |               | -      |   |                 |   | 14     |          |   |   | 14                  |   |   |       | 15,315  |   |       |   | 14     |                                  |   |   | 15,329 |   |   |   | - |   |
| Construction             |   |               | -      |   |                 |   | -      |          |   |   | -                   |   |   |       | -       |   |       |   | -      |                                  |   |   | - |   |   |   | - |   |
| Commercial               |   |               | -      |   |                 |   | 1,917  |          |   |   | 1,917               |   |   |       | 40,600  |   |       |   | 1,917  |                                  |   |   | 42,517 |   |   |   | - |   |
| Consumer                 |   |               | 9      |   |                 |   | 22     |          |   |   | 31                  |   |   |       | 3,433   |   |       |   | 22     |                                  |   |   | 3,455 |   |   |   | - |   |
| Total                    |   | $                  | 882    |   |                 | $      | 6,743  |          |   | $      | 7,625               |   |   | $          | 188,512 |   |       | $      | 6,743  |                                  |   | $ | 195,255 |   |   |   | - |   |

|                                                |   | RecordedInvestment |   |   | UnpaidPrincipalBalance |   |   | RelatedAllowance |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognized |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|--------|------------------|--------|--------|---------------------------|--------|--------|--------------------------|--------|
|                                                |   |               |   |   |                   |   |   |             |   |   |                      |   |   |                     |   |
| Purchased loans with no related allowance recorded: |   |               |   |   |                   |   |   |             |   |   |                      |   |   |                     |   |
| Real Estate:                                        |   |               |   |   |                   |   |   |             |   |   |                      |   |   |                     |   |
| 1-4 family Residential                              |   | $                  | 8,177  |   |                   | $      | 8,177  |             |   | $      | -                         |   |   | $                        | 102    |   |   | $ | 10 |   |
| Multi-family Residential                            |   |               | 1,110  |   |                   |   | 1,110  |             |   |   | -                         |   |   |                     | 185    |   |   |   | - |   |
| Construction                                        |   |               | -      |   |                   |   | -      |             |   |   | -                         |   |   |                     | -      |   |   |   | - |   |
| Commercial                                          |   |               | 8,915  |   |                   |   | 8,915  |             |   |   | -                         |   |   |                     | 469    |   |   |   | 5 |   |
| Consumer                                            |   |               | 1,277  |   |                   |   | 1,277  |             |   |   | -                         |   |   |                     | 40     |   |   |   | 3 |   |
| Total                                               |   | $                  | 19,479 |   |                   | $      | 19,479 |             |   | $      | -                         |   |   | $                        | 796    |   |   | $ | 18 |   |

----

|                                                |   | Impaired LoansAs of March 31, 2011 |        |
|-----------------------------------------------------|--------|------------------------------------|-------------|
|                                                |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                               |        |   | Unpaid |   |   |   |   |   | Average |   |   | Interest |   |
|                                                |   | Recorded                           |        |   | Principal |   |   | Related |   |   | Recorded |   |   | Income |   |
|                                                |   | Investment                         |        |   | Balance |   |   | Allowance |   |   | Investment |   |   | Recognized |   |
| Originated loans with no related allowance recorded |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                        |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family Residential                              |   | $                                  | 4,775       |   |   | $ | 4,775 |   |   | $ | - |   |   | $ | 104 |   |   | $ | 8 |   |
| Commercial                                          |   |                               | 222         |   |   |   | 222 |   |   |   | - |   |   |   | 111 |   |   |   | - |   |
| Consumer                                            |   |                               | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                               |   | $                                  | 4,997       |   |   | $ | 4,997 |   |   | $ | - |   |   | $ | 215 |   |   | $ | 8 |   |
| Originated loans with an allowance recorded:        |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                        |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family Residential                              |   | $                                  | 465         |   |   | $ | 821 |   |   | $ | 356 |   |   | $ | 39 |   |   | $ | - |   |
| Consumer                                            |   |                               | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                               |   | $                                  | 465         |   |   | $ | 821 |   |   | $ | 356 |   |   | $ | 39 |   |   | $ | - |   |
| Total:                                              |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:                                        |   |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family Residential                              |   | $                                  | 13,417      |   |   | $ | 13,773 |   |   | $ | 356 |   |   | $ | 245 |   |   | $ | 18 |   |
| Multi-family Residential                            |   |                               |  1,110 |   |   |   |  1,110 |   |   |   |  - |   |   |   |  185 |   |   |   |  - |   |
| Construction                                        |   |                               | -           |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                                          |   |                               | 9,137       |   |   |   | 9,137 |   |   |   | - |   |   |   | 580 |   |   |   | 5 |   |
| Consumer                                            |   |                               | 1,277       |   |   |   | 1,277 |   |   |   | - |   |   |   | 40 |   |   |   | 3 |   |
| Total                                               |   | $                                  | 24,941      |   |   | $ | 25,297 |   |   | $ | 356 |   |   | $ | 1,050 |   |   | $ | 26 |   |

|                |   | Impaired LoansAs 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 family          |   | $                                     | 4,038  |   |   | $ | 4,038 |   |   | $ | - |   |   | $ | 104 |   |   | $ | 126 |   |
| Residential         |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 family Residential   |   | $                       | 734     |   |   | $ | 951 |   |   | $ | 217 |   |   | $ | 56 |   |   | $ | 9 |   |
| Multi-family Residential |   |                    |  - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction             |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial               |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                 |   |                    | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                    |   | $                       | 734     |   |   | $ | 951 |   |   | $ | 217 |   |   | $ | 56 |   |   | $ | 9 |   |
| Total:                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate:             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1-4 family Residential   |   | $                       | 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 |   |

|       |   | (in thousands) |   |
|------------|--------|----------------|--------|
| 2011       |   | $              | 99     |   |
| 2012       |   |           | 136    |   |
| 2013       |   |           | 139    |   |
| 2014       |   |           | 143    |   |
| 2015       |   |           | 146    |   |
| Thereafter |   |           | 1,553  |   |
|       |   | $              | 2,216  |   |

----

----

|   | o | Centralize responsibility for consumer financial protection by creating a new agency responsible for implementing, examining and enforcing compliance with federal consumer financial laws.                                                                                                                                                         |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | o | Apply the same leverage and risk-based capital requirements that apply to insured depository institutions to bank holding companies.                                                                                                                                                                                                                |
|   | o | Require the FDIC to seek to make its capital requirements for banks countercyclical so that the amount of capital required to be maintained increases in times of economic expansion and decreases in times of economic contraction.                                                                                                                |
|   | o | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital.                                                                                                                                                                                                          |
|   | o | Implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders that apply to all public companies, not just financial institutions.                                                                                                                                                     |
|   | o | Make permanent the $250,000 limit for federal deposit insurance and increase the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000, and provide unlimited federal deposit insurance until January 1, 2013, for non-interest bearing demand transaction accounts at all insured depository institutions. |
|   | o | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts.                                                                                                                                                               |
|   | o | Increase the authority of the Federal Reserve to examine the Corporation and its non-bank subsidiaries.                                                                                                                                                                                                                                             |

----

----

----

----

----

----

----

----

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

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

|   | Not applicable, as the Company is a smaller reporting company. |
|--------|----------------------------------------------------------------|

| 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         |   |
|   |                     |   |        |   |   |       |   |   |                |   |
|   | January 1-31, 2011       |   | -           |   |   |       | $      | -      |                |   |   | 86,766 |   |
|   | February 1-28, 2011      |   | -           |   |   |       | $      | -      |                |   |   | 86,766 |   |
|   | March 1 – 31, 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. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                    |         |                                  |   |                   |
|-------------------------|--------------|---------------------------------------|--------|------------------------|
| Date:    | May 12, 2011 |                                  | By:    | /s/ Thomas J. Linneman |
|                    |         | Thomas J. Linneman                    |
|                    |         | President and Chief Executive Officer |
|                    |         |                                  |
|                    |         |                                  |
| Date:                   | May 12, 2011 |                                  | By:    | /s/ Scott T. Smith     |
|                    |         | Scott T. Smith                        |
|                    |         | Chief Financial Officer               |