<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q




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

For the quarterly period ended June 30, 2009

                                       OR

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

For the transition period from                to
                               --------------    --------------

                           Commission File No. 0-50358

                          CLIFTON SAVINGS BANCORP, INC.
           ----------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)

        United States                                       34-1983738
---------------------------------                      -------------------
 (State or Other Jurisdiction of                         (I.R.S. Employer
  Incorporation or Organization)                         Identification No.)

1433 Van Houten Avenue, Clifton, New Jersey                    07015
-------------------------------------------                 ------------
(Address of Principal Executive Offices)                    (Zip Code)

                                 (973) 473-2200
                                 --------------
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Date File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section
232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). Yes |_|
No |_|

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

Large Accelerated Filer |_|                   Accelerated Filer |X|

Non-Accelerated Filer |_|                     Smaller reporting company |_|
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).  Yes|_| No |X|

The number of shares outstanding of each of the issuer's classes of common
stock, as of August 1, 2009: 26,710,194 shares outstanding.


<PAGE>
<TABLE>
<CAPTION>

                                  CLIFTON SAVINGS BANCORP, INC.
                                        AND SUBSIDIARIES

                                              INDEX
<S>                                                                                                             <C>

                                                                                                                  Page
PART I - FINANCIAL INFORMATION                                                                                   Number
                                                                                                              -------------
        Item 1:      Financial Statements

                     Consolidated Statements of Financial Condition (Unaudited)
                     at June 30, 2009 and March 31, 2009                                                           1

                     Consolidated Statements of Income (Unaudited) For the Three
                     Months Ended June 30, 2009 and 2008                                                           2

                     Consolidated Statements of Comprehensive Income (Unaudited) For the
                     Three Months Ended June 30, 2009 and 2008                                                     3

                     Consolidated Statements of Cash Flows (Unaudited) For the
                     Three Months Ended June 30, 2009 and 2008                                                   4 - 5

                     Notes to Consolidated Financial Statements                                                  6 - 13

        Item 2:      Management's Discussion and Analysis of
                     Financial Condition and Results of Operations                                              14 - 19

        Item 3:      Quantitative and Qualitative Disclosures About Market Risk                                  20 - 21

        Item 4:      Controls and Procedures                                                                       22



PART II - OTHER INFORMATION

        Item 1:      Legal Proceedings                                                                             23

        Item 1A:     Risk Factors                                                                                  23

        Item 2:      Unregistered Sales of Equity Securities and Use of Proceeds                                   23

        Item 3:      Defaults Upon Senior Securities                                                               24

        Item 4:      Submission of Matters to a Vote of Security Holders                                           24

        Item 5:      Other Information                                                                             24

        Item 6:      Exhibits                                                                                      24


SIGNATURES                                                                                                         25

</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
                  ---------------------------------------------
                                   (Unaudited)

                                                                         June 30,        March 31,
ASSETS                                                                     2009            2009
------                                                                ---------------  --------------
<S>                                                                   <C>              <C>
Cash and due from banks                                               $   58,527,843   $  39,668,796
Interest-bearing deposits in other banks                                  22,242,899      11,457,314
                                                                      ---------------  --------------
           Total cash and cash equivalents                                80,770,742      51,126,110
Securities available for sale:
     Investment                                                           15,089,050      10,037,500
     Mortgage-backed                                                      70,381,410      78,122,207
Securities held to maturity:
     Investment, estimated fair value of $75,411,950
           and $75,754,200, respectively                                  74,998,424      74,997,356
     Mortgage-backed, estimated fair value of $251,863,896
           and $240,172,663, respectively                                244,888,898     231,217,782

Loans receivable                                                         470,632,156     470,200,116
Allowance for loan losses                                                 (1,800,000)     (1,700,000)
                                                                      ---------------  --------------
           Net loans                                                     468,832,156     468,500,116
                                                                      ---------------  --------------

Bank owned life insurance                                                 22,173,734      21,947,708
Premises and equipment                                                     9,596,380       9,305,554
Federal Home Loan Bank of New York stock                                   7,988,700       7,740,500
Interest receivable                                                        3,920,399       4,312,562
Other assets                                                               2,880,520       2,462,586
                                                                      ---------------  --------------
           Total assets                                               $1,001,520,413   $ 959,769,981
                                                                      ===============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Liabilities
     Deposits:
        Non-interest bearing                                          $    5,162,905   $   5,263,003
        Interest bearing                                                 671,413,968     628,319,384
                                                                      ---------------  --------------
           Total deposit                                                 676,576,873     633,582,387

     Advances from Federal Home Loan Bank of New York                    142,211,835     144,272,429
     Advance payments by borrowers for taxes and insurance                 5,134,945       4,824,515
     Other liabilities and accrued expenses                                4,019,522       3,926,421
                                                                      ---------------  --------------
           Total liabilities                                             827,943,175     786,605,752
                                                                      ---------------  --------------

Stockholders' equity
     Preferred stock (par value $0.01), authorized 1,000,000
           shares; issued and outstanding - none                                   -               -
     Common stock (par value $0.01), authorized 75,000,000
           shares; 30,530,470 shares issued; 26,710,194 shares outstanding
           at June 30, 2009; 26,732,607 shares outstanding at
           March 31, 2009                                                    305,305         305,305
     Paid-in capital                                                     135,500,938     135,180,160
     Deferred compensation obligation under Rabbi Trust                      215,177         208,933
     Retained earnings                                                    85,272,157      84,889,237
     Treasury stock, at cost; 3,820,276 shares at June 30, 2009
           and 3,797,863 shares at March 31, 2009                        (42,148,010)    (41,925,523)
     Common stock acquired by Employee Stock Ownership Plan               (6,960,943)     (7,144,126)
     Accumulated other comprehensive income                                1,580,107       1,809,337
     Stock held by Rabbi Trust                                              (187,493)       (159,094)
                                                                      ---------------  --------------
           Total stockholders' equity                                    173,577,238     173,164,229
                                                                      ---------------  --------------
           Total liabilities and stockholders' equity                 $1,001,520,413   $ 959,769,981
                                                                      ===============  ==============
</TABLE>

                                      -1-
<PAGE>
<TABLE>
<CAPTION>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                        ---------------------------------
                                   (Unaudited)

                                                                             Three Months Ended June 30,
                                                                        --------------------------------------
Interest income:                                                              2009                2008
                                                                        ------------------  ------------------
<S>                                                                      <C>                 <C>
     Loans                                                               $      6,105,373    $      5,623,995
     Mortgage-backed securities                                                 3,998,437           3,607,370
     Investment securities                                                        703,406           1,230,186
     Other interest-earning assets                                                111,769             305,713
                                                                        ------------------  ------------------
              Total interest income                                            10,918,985          10,767,264
                                                                        ------------------  ------------------
Interest expense:
     Deposits                                                                   4,952,911           5,143,048
     Advances                                                                   1,380,819           1,427,946
                                                                        ------------------  ------------------
              Total interest expense                                            6,333,730           6,570,994
                                                                        ------------------  ------------------

Net interest income                                                             4,585,255           4,196,270
Provision for loan losses                                                         100,000                   -
                                                                        ------------------  ------------------
Net interest income after provision for loan losses                             4,485,255           4,196,270
                                                                        ------------------  ------------------

Non-interest income:
     Fees and service charges                                                      57,704              51,447
     Bank owned life insurance                                                    226,026             228,531
     Other                                                                          6,103              10,454
                                                                        ------------------  ------------------
              Total non-interest income                                           289,833             290,432
                                                                        ------------------  ------------------

Non-interest expenses:
     Salaries and employee benefits                                             1,768,299           1,699,890
     Net occupancy expense of premises                                            245,206             236,817
     Equipment                                                                    221,512             218,476
     Directors' compensation                                                      224,148             244,558
     Legal                                                                         52,236              59,741
     Advertising                                                                   56,926              86,479
     Federal insurance premium                                                    632,101              16,213
     Other                                                                        423,480             292,301
                                                                        ------------------  ------------------
              Total non-interest expenses                                       3,623,908           2,854,475
                                                                        ------------------  ------------------

Income before income taxes                                                      1,151,180           1,632,227
Income taxes                                                                      307,256             500,000
                                                                        ------------------  ------------------
Net income                                                               $        843,924    $      1,132,227
                                                                        ==================  ==================

Net income per common share:
     Basic                                                               $           0.03    $           0.04
                                                                        ==================  ==================
     Diluted                                                             $           0.03    $           0.04
                                                                        ==================  ==================

Dividends per common share                                               $           0.05    $           0.05
                                                                        ==================  ==================

Weighted average number of common shares and common stock equivalents
  outstanding:
     Basic                                                                     25,915,963          26,137,127
                                                                        ==================  ==================
     Diluted                                                                   26,030,473          26,184,002
                                                                        ==================  ==================
</TABLE>
                                      -2-



<PAGE>
<TABLE>
<CAPTION>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (Unaudited)

                                                                                Three Months Ended June 30,
                                                                             ----------------------------------
                                                                                   2009              2008
                                                                             ----------------  ----------------
<S>                                                                            <C>               <C>
Net income                                                                     $     843,924     $   1,132,227
                                                                             ----------------  ----------------

Other comprehensive income (loss):
     Gross unrealized holding (loss) on securities available for sale,
       net of income tax benefit of $156,798 and $776,579, respectively             (235,786)       (1,167,785)
     Benefit plans, net of income taxes of $4,359 and $7,755, respectively             6,556            11,661
                                                                             ----------------  ----------------
Other comprehensive loss                                                            (229,230)       (1,156,124)
                                                                             ----------------  ----------------
Comprehensive income (loss)                                                    $     614,694     $     (23,897)
                                                                             ================  ================
</TABLE>


                                                  -3-

<PAGE>
<TABLE>
<CAPTION>

                                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      -------------------------------------
                                                   (Unaudited)

                                                                                           Three Months Ended June 30,
                                                                                        ----------------------------------
                                                                                             2009              2008
                                                                                        ----------------  ----------------
<S>                                                                                      <C>               <C>
Cash flows from operating activities:
     Net income                                                                          $      843,924    $    1,132,227
     Adjustments to reconcile net income to net cash provided by operating activities:
        Depreciation and amortization of premises and equipment                                 109,065           114,196
        Net amortization (accretion) of deferred fees and costs, premiums and discounts         (49,450)           34,709
        Amortization component of net periodic benefit cost                                      10,915            19,416
        Provision for loan losses                                                               100,000                 -
        Decrease in interest receivable                                                         392,163           288,360
        Deferred income tax benefit                                                            (308,870)         (241,201)
        Decrease in other assets                                                                 43,375           289,725
        (Decrease) increase in accrued interest payable                                          (1,108)           46,440
        Increase in other liabilities                                                            94,209           496,088
        Increase in cash surrender value of bank owned life insurance                          (226,026)         (228,531)
        ESOP shares committed to be released                                                    195,273           185,320
        Restricted stock expense                                                                264,130           265,567
        Stock option expense                                                                     39,473            92,104
        Increase in deferred compensation obligation under Rabbi Trust                            6,244             7,587
                                                                                        ----------------  ----------------
           Net cash provided by operating activities                                          1,513,317         2,502,007
                                                                                        ----------------  ----------------

Cash flows from investing activities: Proceeds from calls, maturities and
     repayments of:
        Mortgage-backed securities available for sale                                         7,325,289         3,604,361
        Investment securities held to maturity                                               15,000,000        25,000,000
        Mortgage-backed securities held to maturity                                          21,334,740         8,553,583
     Redemptions of Federal Home Loan Bank of New York stock                                     92,700           224,000
     Purchases of:
        Investment securities available for sale                                             (5,000,000)                -
        Investment securities held to maturity                                              (15,000,000)                -
        Mortgage-backed securities held to maturity                                         (34,941,465)      (51,273,961)
        Loans receivable                                                                     (1,023,276)                -
        Premises and equipment                                                                 (399,891)          (22,043)
        Federal Home Loan Bank of New York stock                                               (340,900)       (1,240,400)
     Net (increase) decrease in loans receivable                                                546,601       (19,259,432)
                                                                                        ----------------  ----------------
           Net cash used in investing activities                                            (12,406,202)      (34,413,892)
                                                                                        ----------------  ----------------
</TABLE>

                                              -4-

<PAGE>
<TABLE>
<CAPTION>
                                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                 CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
                                 ----------------------------------------------
                                                   (Unaudited)


                                                                                           Three Months Ended June 30,
                                                                                        ----------------------------------
                                                                                              2009              2008
                                                                                        ----------------  ----------------
<S>                                                                                      <C>               <C>
Cash flows from financing activities:
     Net increase in deposits                                                            $   42,994,486    $       66,402
     Proceeds from advances from Federal Home Loan Bank of New York                                   -        25,000,000
     Principal payments on advances from Federal Home Loan Bank of New York                  (2,060,594)       (4,977,648)
     Net increase in payments by borrowers for taxes and insurance                              310,430           429,876
     Dividends paid                                                                            (461,004)         (486,078)
     Purchase of treasury stock                                                                (247,876)       (4,230,186)
     Tax benefit from stock based compensation                                                    2,075             4,151
                                                                                        ----------------  ----------------
           Net cash provided by financing activities                                         40,537,517        15,806,517
                                                                                        ----------------  ----------------

Net  increase (decrease) in cash and cash equivalents                                        29,644,632       (16,105,368)
Cash and cash equivalents - beginning                                                        51,126,110        52,230,690
                                                                                        ----------------  ----------------
Cash and cash equivalents - ending                                                       $   80,770,742    $   36,125,322
                                                                                        ================  ================
Supplemental information:
     Cash paid during the period for:
        Interest on deposits and borrowings                                              $    6,334,838    $    6,524,554
                                                                                        ================  ================
        Income taxes paid, net of refunds                                                $    1,162,159    $      231,642
                                                                                        ================  ================
</TABLE>

                                              -5-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


1. PRINCIPLES OF CONSOLIDATION
------------------------------

The consolidated financial statements include the accounts of Clifton Savings
Bancorp, Inc. (the "Company"), the Company's wholly-owned subsidiary, Clifton
Savings Bank (the "Bank") and the Bank's wholly-owned subsidiary, Botany Inc.
("Botany"). The Company's business consists principally of investing in
securities and the operations of the Bank. Botany's business consists solely of
holding investment and mortgage-backed securities, and Botany is treated under
New Jersey tax law as a New Jersey investment company. All significant
intercompany accounts and transactions have been eliminated in consolidation.


2. BASIS OF PRESENTATION
------------------------

The accompanying unaudited consolidated financial statements were prepared in
accordance with the instructions for Form 10-Q and Regulation S-X and do not
include information or footnotes necessary for a complete presentation of
financial condition, results of operations, or cash flows in conformity with
accounting principles generally accepted in the United Sates of America.
However, in the opinion of management, all adjustments (consisting of normal
recurring adjustments) necessary for a fair presentation of the consolidated
financial statements have been included. The results of operations for the three
month period ended June 30, 2009 are not necessarily indicative of the results
which may be expected for the entire fiscal year. These consolidated financial
statements should be read in conjunction with the Company's audited consolidated
financial statements and related notes thereto for the year ended March 31,
2009, which are included in the Company's Annual Report on Form 10-K as filed
with the Securities and Exchange Commission on June 12, 2009.

In preparing these financial statements, the Company has evaluated subsequent
events and transactions that occurred after June 30, 2009 through August 7,
2009.

3. EARNINGS PER SHARE (EPS)
---------------------------

Basic EPS is based on the weighted average number of common shares actually
outstanding, and is adjusted for Employee Stock Ownership Plan ("ESOP") shares
not yet committed to be released, unvested restricted stock awards and deferred
compensation obligations required to be settled in shares of Company stock.
Diluted EPS reflects the potential dilution that could occur if securities or
other contracts to issue common stock, such as unvested restricted stock awards
and outstanding stock options, were exercised or converted into common stock or
resulted in the issuance of common stock that then shared in the earnings of the
Company. Diluted EPS is calculated by adjusting the weighted average number of
shares of common stock outstanding to include the effect of contracts or
securities exercisable (such as stock awards and options) or which could be
converted into common stock, if dilutive, using the treasury stock method. The
calculation of diluted EPS for the three months ended June 30, 2009 and 2008,
include incremental shares related to outstanding stock options and unvested
restricted stock awards of 66,247 and 48,263, and -0- and 46,875, respectively.
Shares issued and reacquired during any period are weighted for the portion of
the period they were outstanding.


                                      -6-

<PAGE>


                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

4. DIVIDEND WAIVER
------------------

During the three months ended June 30, 2009 and 2008, Clifton MHC ("MHC"), the
federally chartered mutual holding company of the Company, waived its right,
upon non-objection from the Office of Thrift Supervision ("OTS"), to receive
cash dividends of approximately $840,000 on the shares of Company common stock
it owned in each year. The cumulative amount of dividends waived by the MHC
through June 30, 2009 was $16.6 million. The dividends waived are considered as
a restriction on the retained earnings of the Company.


5. STOCK REPURCHASE PLANS
-------------------------

On February 24, 2009, the Company's Board of Directors authorized the Company's
eighth repurchase plan for up to 350,000 shares of the Company's outstanding
stock, representing approximately 3% of the outstanding shares owned by entities
other than the MHC. During the three months ended June 30, 2009, 24,887 shares
were repurchased under this plan at a total cost of approximately $248,000, or
$9.96 per share. At June 30, 2009, there remained 291,278 shares to be purchased
under this stock repurchase program.


6. RETIREMENT PLAN-COMPONENTS OF NET PERIODIC PENSION COST
----------------------------------------------------------

Periodic pension expense for the director's and former President's retirement
plans were as follows:

                                                Three Months Ended June 30,
                                             ---------------------------------
                                                  2009              2008
                                             ---------------   ---------------
                                                     (In Thousands)

Service cost                                   $         20      $         22
Interest cost                                            38                36
Amortization of past service cost                        12                22
Amortization of unrecognized net (gain)                  (1)               (2)
                                             ---------------   ---------------

Net periodic benefit cost                      $         69      $         78
                                             ===============   ===============





                                      -7-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

<TABLE>
<CAPTION>
7. INVESTMENT SECURITIES
------------------------

                                                                                         June 30, 2009
                                                        -------------------------------------------------------------------------
                                                                                Gross             Gross            Estimated
                                                           Amortized          Unrealized        Unrealized            Fair
                                                              Cost              Gains             Losses             Value
                                                        -----------------  ----------------- -----------------  -----------------
<S>                                                      <C>                 <C>               <C>                <C>
Available for sale:
   Debt securities:
      U.S. Government (including agencies) maturing:
              After one but within five years            $    15,000,000     $       89,050    $            -     $   15,089,050
                                                        -----------------  ----------------- -----------------  -----------------
                                                         $    15,000,000     $       89,050    $            -     $   15,089,050
                                                        =================  ================= =================  =================
Held to maturity:
   Debt securities:
      U.S. Government (including agencies) maturing:
              Within one year                            $    29,998,424     $      433,826    $            -     $   30,432,250
              After one but within five years                 45,000,000            111,350           131,650         44,979,700
                                                        -----------------  ----------------- -----------------  -----------------
                                                         $    74,998,424     $      545,176    $      131,650     $   75,411,950
                                                        =================  ================= =================  =================
</TABLE>

The age of unrealized losses and the fair value of related investment securities
at June 30, 2009 were as follow:

<TABLE>
<CAPTION>
                                               Less Than 12 Months               12 Months or More                 Total
                                          ------------------------------- --------------------------------- ------------------------
                                                               Gross                            Gross                       Gross
                                                            Unrealized                       Unrealized                   Unrealized
                                            Fair Value        Losses        Fair Value         Losses         Fair Value    Losses
                                          ---------------- -------------- ---------------- ---------------- ------------- ----------
<S>                                        <C>               <C>            <C>              <C>             <C>           <C>
June 30, 2009:
  U.S. Government (including agencies):
     Held to maturity                      $   14,868,350    $   131,650    $           -    $          -    $ 14,868,350  $ 131,650
                                          ---------------- -------------- ---------------- ---------------- ------------- ----------

                                           $   14,868,350    $   131,650    $           -    $          -    $ 14,868,350  $ 131,650
                                          ================ ============== ================ ================ ============== =========
</TABLE>

Management does not believe that any of the unrealized losses at June 30, 2009
(three U.S. Government agencies) represent an other-than-temporary impairment as
they are primarily related to market interest rates and not related to the
underlying credit quality of the issuers of the securities. Additionally, the
Company and subsidiaries have the ability, and management has the intent, to
hold such securities for the time necessary to recover amortized cost and does
not have the intent to sell the securities, and it is more likely than not that
it will not have to sell the securities before recovery of their amortized cost.

There were no sales of investment securities available for sale or held to
maturity during the period ended June 30, 2009.


                                      -8-

<PAGE>


                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
<TABLE>
<CAPTION>

8. MORTGAGE-BACKED SECURITIES
-----------------------------

                                                                                  June 30, 2009
                                                   -------------------------------------------------------------------------
                                                                           Gross             Gross            Estimated
                                                       Amortized         Unrealized        Unrealized            Fair
                                                         Cost              Gains             Losses             Value
                                                   ------------------ ----------------- -----------------  -----------------
<S>                                                 <C>                 <C>               <C>                <C>
Available for sale:
    Federal Home Loan Mortgage Corporation          $     30,200,400    $    1,206,124    $            -     $   31,406,524
    Federal National Mortgage Association                 37,554,505         1,420,381                 -         38,974,886
                                                   ------------------ ----------------- -----------------  -----------------
                                                    $     67,754,905    $    2,626,505    $            -     $   70,381,410
                                                   ================== ================= =================  =================

Held to maturity:
    Federal Home Loan Mortgage Corporation          $    137,437,252    $    4,491,976    $      282,179     $  141,647,049
    Federal National Mortgage Association                 79,934,862         2,183,904           259,452         81,859,314
    Governmental National Mortgage
         Association                                      27,516,784           850,520             9,771         28,357,533
                                                   ------------------ ----------------- -----------------  -----------------
                                                    $    244,888,898    $    7,526,400    $      551,402     $  251,863,896
                                                   ================== ================= =================  =================
</TABLE>

Contractual maturity data for mortgage-backed securities is as follows:
<TABLE>
<CAPTION>
                                                                June 30, 2009
                                                   ------------------------------------
                                                       Amortized         Estimated
                                                         Cost            Fair Value
                                                   ------------------ -----------------
                                                             (In Thousands)
<S>                                                  <C>                <C>
Available for sale:
    Due after five through ten years                 $         8,383    $        8,759
    Due after ten years                                       59,372            61,622
                                                   ------------------ -----------------
                                                     $        67,755    $       70,381
                                                   ================== =================

Held to maturity:
    Due within one year                              $         1,374    $        1,370
    Due after one through five years                             273               289
    Due after five through ten years                          21,314            22,067
    Due after ten years                                      221,928           228,138
                                                   ------------------ -----------------
                                                     $       244,889    $      251,864
                                                   ================== =================
</TABLE>

The amortized cost and carrying values shown above are by contractual final
maturity. Actual maturities will differ from contractual final maturities due to
scheduled monthly payments related to mortgage-backed securities and due to the
borrowers having the right to prepay obligations with or without prepayment
penalties.

                                      -9-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


8. MORTGAGE-BACKED SECURITIES (CONT'D)
--------------------------------------

The age of gross unrealized losses and the fair value of related mortgage-backed
securities were as follows:
<TABLE>
<CAPTION>
                                     Less Than 12 Months                 12 Months or More                       Total
                            ---------------------------------- ------------------------------------ --------------------------------
                                                   Gross                                Gross                              Gross
                                                Unrealized                           Unrealized                          Unrealized
                               Fair Value         Losses          Fair Value           Losses          Fair Value          Losses
                            ----------------- ---------------- ------------------  ---------------- ---------------- ---------------
<S>                          <C>                <C>              <C>                 <C>              <C>               <C>
June 30, 2009:
      Held to maturity       $    29,008,301    $   496,426      $  5,079,755        $   54,976       $ 34,088,056      $ 551,402
                            ----------------- ---------------- ------------------  ---------------- ----------------- --------------

                             $    29,008,301    $   496,426      $  5,079,755        $   54,976       $ 34,088,056      $ 551,402
                            ================= ================ ==================  ================ ================= ==============
</TABLE>
Management does not believe that any of the unrealized losses at June 30, 2009
(thirty-four mortgage-backed securities) represent an other-than-temporary
impairment as they are primarily related to market interest rates and not
related to the underlying credit quality of the issuers of the securities.
Additionally, the Company and its subsidiaries have the ability, and management
has the intent, to hold such securities for the time necessary to recover
amortized cost and does not have the intent to sell the securities, and it is
more likely than not that it will not have to sell the securities before
recovery of its amortized cost.

There were no sales of mortgage-backed securities available for sale or held to
maturity during the period ended June 30, 2009.


9. FAIR VALUE OF FINANCIAL INSTRUMENTS
--------------------------------------

Statement of Financial Accounting Standards ("SFAS") No.157, "Fair Value
Measurements" establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest
priority to unadjusted quoted prices in active markets for identical assets or
liabilities (level 1 measurements) and the lowest priority to unobservable
inputs (level 3 measurements). The three levels of the fair value hierarchy
under SFAS No. 157 are described below:

Basis of Fair Value Measurement:

         Level 1: Unadjusted quoted prices in active markets that are accessible
         at the measurement date for identical unrestricted assets or
         liabilities.

         Level 2: Quoted prices in markets that are not active, or inputs that
         are observable either directly or indirectly, for substantially the
         full term of the asset or liability.

         Level 3: Price or valuation techniques that require inputs that are
         both significant to the fair value measurement and unobservable (i.e.
         supported with little or no market activity).

                                      -10-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------

9. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT'D)
-----------------------------------------------

An asset's or liability's level within the fair value hierarchy is based on the
lowest level of input that is significant to the fair value measurement.

For assets measured at fair value on a recurring basis, the fair value
measurements by level within the fair value hierarchy used at June 30, 2009 and
March 31, 2009 are as follows:
<TABLE>
<CAPTION>
                                                                 (Level 1)          (Level 2)
                                                               Quoted Prices       Significant        (Level 3)
                                                                 in Active            Other          Significant
                                                 Carrying       Markets for        Observable        Unobservable
Description                                       Value       Identical Assets       Inputs             Inputs
--------------------------------------------  -------------   ----------------    --------------    ---------------
JUNE 30, 2009:                                                          (IN THOUSANDS)
<S>                                            <C>              <C>                <C>                <C>
Securities available for sale:
     Mortgage-backed securities                $    70,381      $           -      $     70,381       $          -
     Investment                                     15,089                  -            15,089                  -
                                              -------------   ----------------    --------------    ---------------
        Total securities available for sale    $    85,470      $           -      $     85,470       $          -
                                              =============   ================    ==============    ===============
MARCH 31, 2009:
Securities available for sale:
     Mortgage-backed securities                $    78,122      $           -      $     78,122       $          -
     Investment                                     10,038                  -            10,038                  -
                                              -------------   ----------------    --------------    ---------------
        Total securities available for sale    $    88,160      $           -      $     88,160       $          -
                                              =============   ================    ==============    ===============
</TABLE>

The following information should not be interpreted as an estimate of the fair
value of the Company since a fair value calculation is only provided for a
limited portion of the Company's assets and liabilities. Due to a wide range of
valuation techniques and the degree of subjectivity used in making the
estimates, comparisons between the Company's disclosures and those of other
companies may not be meaningful. The following methods and assumptions were used
to estimate the fair values of the Company's financial instruments at June 30,
2009.

CASH AND CASH EQUIVALENTS, INTEREST RECEIVABLE AND INTEREST PAYABLE (CARRIED AT
COST)

The carrying amounts reported in the consolidated statements of financial
condition for cash and cash equivalents, interest receivable and interest
payable approximate their fair values.

SECURITIES

The fair value of all securities, whether classified as available for sale
(carried at fair value) or held to maturity (carried at cost), is determined by
reference to quoted market prices, where available. If quoted market prices are
not available, fair values are based on quoted market prices of comparable
instruments. Securities that we measure on a recurring basis are limited to our
available-for-sale portfolio. The fair values of these securities are obtained
from quotes received from an independent broker. Our broker provides us with
prices which are categorized as Level 2 since quoted prices in active markets
for identical assets are generally not available. The various modeling
techniques used to determine pricing for our investment securities include
option pricing and discounted cash flow models. The inputs to these models
include benchmark yields, reported trades, broker/dealer quotes, issuer spreads,
two-sided markets, benchmark securities, bids, offers and reference data.

                                      -11-

<PAGE>


                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


9. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT'D)
-----------------------------------------------

LOANS RECEIVABLE (CARRIED AT COST)

Fair value is estimated by discounting the future cash flows, using the current
rates at which similar loans would be made to borrowers with similar credit
ratings and for the same remaining maturities, of such loans.

FEDERAL HOME LOAN BANK OF NEW YORK STOCK (CARRIED AT COST)

Fair value approximates cost basis as these instruments are redeemable only with
the issuing agency at face value.

DEPOSITS (CARRIED AT COST)

The fair value of non-interest-bearing demand, Crystal Checking, NOW, Super NOW,
Money Market and Savings and Club accounts is the amount payable on demand at
the reporting date. For fixed-maturity certificates of deposit, fair value is
estimated by discounting future cash flows using the rates currently offered for
deposits of similar remaining maturities.

ADVANCES FROM FEDERAL HOME LOAN BANK OF NEW YORK (CARRIED AT COST)

The fair value is estimated by discounting future cash flows using rates
currently offered for liabilities of similar remaining maturities, or when
available, quoted market prices.

COMMITMENTS TO EXTEND CREDIT

The fair value of commitments is estimated using the fees currently charged to
enter into similar agreements, taking into account the remaining terms of the
agreements and the present creditworthiness of the counterparties. For
fixed-rate loan commitments, fair value also considers the difference between
current levels of interest rates and the committed rates.

As of June 30, 2009, the fair value of the commitments to extend credit were not
considered to be material.

The carrying amounts and fair values of financial instruments are as follows:

                                                         June 30, 2009
                                               ---------------------------------
                                                  Carrying         Estimated
                                                    Value         Fair Value
                                               ---------------- ----------------
Financial assets:                                       (In Thousands)
     Cash and cash equivalents                  $     80,771      $    80,771
     Securities available for sale:
         Investment                                   15,089           15,089
         Mortgage-backed                              70,381           70,381
     Securities held to maturity:
         Investment                                   74,998           75,412
         Mortgage-backed                             244,889          251,864
     Net loans receivable                            468,832          466,608
     Federal Home Loan Bank of New York stock          7,989            7,989
     Interest receivable                               3,920            3,920
Financial liabilities:
     Deposits                                        676,577          681,043
     FHLB advances                                   142,212          148,060
     Interest payable                                    553              553


                                      -12-


<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------


10. RECENT ACCOUNTING PRONOUNCEMENTS
------------------------------------

In June 2008, the FASB issued FASB Staff Position (FSP) Emerging Issues Task
Force (EITF) 03-6-1, "Determining Whether Instruments Granted in Share-Based
Payment Transactions Are Participating Securities." This FSP clarifies that all
outstanding unvested share-based payment awards that contain rights to
non-forfeitable dividends participate in undistributed earnings with common
shareholders. Awards of this nature are considered participating securities and
the two-class method of computing basic and diluted earnings per share must be
applied. This FSP is effective for fiscal years beginning after December 15,
2008. The adoption of this new pronouncement did not have a material effect on
the Company's consolidated financial statements.

In November 2008, the SEC released a proposed roadmap regarding the potential
use by U.S. issuers of financial statements prepared in accordance with
International Financial Reporting Standards (IFRS). IFRS is a comprehensive
series of accounting standards published by the International Accounting
Standards Board (IASB). Under the proposed roadmap, the Company may be required
to prepare financial statements in accordance with IFRS as early as 2014. The
SEC will make a determination in 2011 regarding the mandatory adoption of IFRS.
The Company is currently assessing the impact that this potential change would
have on its consolidated financial statements and it will continue to monitor
the development of the potential implementation of IFRS.

In December 2008, the FASB issued FSP FAS 132(R)-1, "Employers' Disclosures
about Postretirement Benefit Plan Assets". This FSP amends SFAS 132(R),
"Employers' Disclosures about Pensions and Other Postretirement Benefits", to
provide guidance on an employer's disclosures about plan assets of a defined
benefit pension or other postretirement plan. The disclosures about plan assets
required by this FSP shall be provided for fiscal years ending after December
15, 2009. The Company does not expect this new pronouncement will have a
material effect on its consolidated financial statements.

In June 2009, the FASB issued SFAS No. 168, "The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles, a
replacement of FASB Statement No. 162." SFAS 168 replaces SFAS No. 162, "The
Hierarchy of Generally Accepted Accounting Principles", and establishes the FASB
Accounting Standards Codification as the source of authoritative accounting
principles recognized by the FASB to be applied by nongovernmental entities in
preparation of financial statements in conformity with generally accepted
accounting principles in the United States. SFAS 168 is effective for interim
and annual periods ending after September 15, 2009. The Company does not expect
the adoption of this standard will have a material impact on its consolidated
financial statements.


                                      -13-

<PAGE>


                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     ITEM 2:
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


FORWARD-LOOKING STATEMENTS

This Form 10-Q may include, and from time to time the Company may disclose,
certain forward-looking statements based on current management expectations. The
Company's actual results could differ materially from those management
expectations. Factors that could cause future results to vary from current
management expectations include, but are not limited to, general economic
conditions, legislative and regulatory changes, monetary and fiscal policies of
the federal government, changes in tax policies, rates and regulations of
federal, state and local tax authorities, changes in interest rates, deposit
flows, the cost of funds, demand for loan products, demand for financial
services, competition, changes in the quality or composition of loan and
investment portfolios, changes in accounting principles, policies or guidelines,
and other economic, competitive, governmental and technological factors
affecting the Company's operations, markets, products, services and prices.
Additional factors are discussed in the Company's Annual Report on Form 10-K for
the year ended March 31, 2009 under "Item 1A. Risk Factors". These risks and
uncertainties should be considered in evaluating forward-looking statements and
undue reliance should not be placed on such statements. Forward-looking
statements speak only as of the date they are made and the Company does not
undertake to update forward-looking statements to reflect circumstances or
events that occur after the date of the forward-looking statements or to reflect
the occurrence of unanticipated events. Accordingly, past results and trends
should not be used by investors to anticipate future results or trends.


OVERVIEW OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company's results of operations depend primarily on its net interest income,
which is a direct result of the interest rate environment. Net interest income
is the difference between the interest income earned on interest-earning assets
and the interest paid on interest-bearing liabilities. It is a function of the
average balances of loans and securities versus deposits and borrowed funds
outstanding in any one period and the yields earned on those loans and
securities and the cost of those deposits and borrowed funds.

Interest-earning assets consist primarily of investment and mortgage-backed
securities and loans which comprised 40.5% and 46.8%, respectively, of total
assets at June 30, 2009, as compared to 41.1% and 48.8%, respectively, at March
31, 2009. Cash and cash equivalents increased to 8.1% of total assets at June
30, 2009, as compared to 5.3% at March 31, 2009. The Company's investment and
mortgage-backed securities portfolios consist of only U.S. government-sponsored
or guaranteed enterprises.

Interest-bearing liabilities consist of deposits and borrowings from the Federal
Home Loan Bank of New York ("FHLB"). Deposits increased $43.0 million, or 6.8%,
between March 31, 2009 and June 30, 2009, and borrowed funds decreased by $2.1
million, or 1.4%, during this period. The balance in borrowed funds was $142.2
million at June 30, 2009 as compared to $144.3 million at March 31, 2009. During
the three months ended June 30, 2009, $2.1 million of long-term borrowings were
repaid in accordance with their original terms.

Net interest income increased $389,000, or 9.3%, during the three months ended
June 30, 2009, when compared with the same 2008 period. Such increase was due to
a $152,000 increase in total interest income and a decrease in total interest
expense of $237,000. Average interest-earning assets increased $34.4 million, or
4.0%, while average interest-bearing liabilities increased $69.7 million, or
9.7%. The $35.3 million decrease in average net interest-earning assets was
mainly attributable to an increase of $72.5 million in interest-bearing deposits
and a decrease of $19.4 million in other interest-earning assets, partially
offset by increases of $40.3 million in interest-earning loans and $13.5 million
in securities

                                      -14-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


OVERVIEW OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT'D)

coupled with a decrease of $2.8 million in borrowings. The interest rate spread
increased 32 basis points to 1.69% from 1.37%. This was due to a 45 basis point
decrease in the cost of interest-bearing liabilities which was partially offset
by a decrease of 13 basis points in the yield earned on interest-earning assets.
Results of operations also depend, to a lesser extent, on non-interest income
generated, any provision for loan losses recorded, and non-interest expenses
incurred. During the three months ended June 30, 2009 and 2008, non-interest
income remained at the same level of $290,000. The provision for loan losses was
$100,000 and $-0-, respectively, for the three months ended June 30, 2009 and
2008, respectively, and non-interest expenses increased $770,000, or 27.0%
between periods.


CHANGES IN FINANCIAL CONDITION

The Company's assets at June 30, 2009 totaled $1,001.5 million, which represents
an increase of $41.7 million or 4.3% as compared with $959.8 million at March
31, 2009.

Cash and cash equivalents increased $29.7 million, or 58.1% to $80.8 million at
June 30, 2009 as compared to $51.1 million at March 31, 2009, as funds from the
increase in deposits during the quarter had not yet been redeployed into higher
yielding assets.

Securities available for sale at June 30, 2009 decreased $2.7 million, or 3.1%
to $85.5 million when compared with $88.2 million at March 31, 2009. The
decrease during the three months ended June 30, 2009 resulted primarily from
maturities and repayments totaling $7.3 million, and a decrease in the
unrealized gain of $393,000 on the portfolio, partially offset by a purchase of
$5.0 million.

Securities held to maturity at June 30, 2009 increased $13.7 million or 4.5% to
$319.9 million when compared with $306.2 million at March 31, 2009. The increase
during the three months ended June 30, 2009, resulted primarily from purchases
of securities totaling $49.9 million partially offset by maturities, calls
and repayments totaling $36.3 million.

Net loans at June 30, 2009 increased $300,000, or 0.1% to $468.8 million when
compared with $468.5 million at March 31, 2009. The increase during the three
months ended June 30, 2009, resulted primarily from internal origination volume,
primarily in residential real estate loans, which slightly offset repayment
levels. The largest increase in the loan portfolio was in non-residential real
estate loans which increased $2.0 million, or 9.0%.

Total liabilities increased $41.3 million, or 5.3% to $827.9 million at June 30,
2009 from $786.6 million at March 31, 2009. Deposits at June 30, 2009 increased
$43.0 million, or 6.8% to $676.6 million when compared with $633.6 million at
March 31, 2009, as the Bank continued to offer very competitive rates on their
deposit products. Borrowings decreased $2.1 million, or 1.4% to $142.2 million
at June 30, 2009, as compared with $144.3 million at March 31, 2009. During the
period ended June 30, 2009, $2.1 million of long-term borrowings were repaid in
accordance with their original terms. At June 30, 2009, the remaining borrowings
of $142.2 million had an average interest rate of 3.85%.

Stockholders' equity totaled $173.6 million and $173.2 million at June 30, 2009
and March 31, 2009, respectively. The increase of $400,000, or 0.2%, for the
three months ended June 30, 2009, resulted primarily from net income of
$844,000, ESOP shares committed to be released of $195,000, and $306,000 for
stock options and restricted stock awards earned under the Company's 2005 Equity
Incentive Plan and related tax benefits, partially offset by the repurchase of
approximately 25,000 shares

                                      -15-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------

CHANGES IN FINANCIAL CONDITION (CONT'D)

of Company common stock for $250,000, cash dividends paid of $461,000, and a net
decrease in unrealized gains of $236,000 on the available for sale securities
portfolios.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2009 AND
2008

Net income decreased $288,000, or 25.4% to $844,000 for the three months ended
June 30, 2009 compared with $1.13 million for the same 2008 period. The decrease
in net income during the 2009 period resulted primarily from an increase in
non-interest expenses of $770,000, or 27.0%, to $3.62 million for the three
months ended June 30, 2009 as compared to $2.85 million for the three months
ended June 30, 2008, partially offset by an increase of $389,000, or 9.3% in net
interest income for the three months ended June 30, 2009, as compared to the
same 2008 period.

Interest income on loans increased by $500,000, or 8.9% to $6.1 million during
the three months ended June 30, 2009, when compared with $5.6 million for the
same 2008 period. The increase during the 2009 period mainly resulted from an
increase in average loan balance of $40.3 million, or 9.4% when compared to the
same period in 2008, coupled with a decrease in the yield earned on the loan
portfolio of 4 basis points to 5.20% from 5.24%. Interest on mortgage-backed
securities increased $400,000, or 11.1% to $4.0 million during the three months
ended June 30, 2009, when compared with $3.6 million for the same 2008 period.
The increase during the 2009 period resulted from an increase of 7 basis points
in the yield earned on mortgage-backed securities to 5.20% from 5.13%, coupled
with an increase of $25.9 million, or 9.2% in the average balance of
mortgage-backed securities outstanding. Interest earned on investment securities
decreased by $527,000, or 42.8% to $703,000 during the three months ended June
30, 2009, when compared to $1.23 million during the same 2008 period, due to a
decrease in the average balance of $12.4 million, or 12.4%, coupled with a 171
basis point decrease in yield to 3.21% from 4.92%. Interest earned on other
interest-earning assets decreased by $194,000, or 63.4% to $112,000 during the
three months ended June 30, 2009, when compared to $306,000 during the same 2008
period primarily due to a decrease of 98 basis points in yield to 1.67% from
2.65%, coupled with a decrease of $19.4 million, or 41.8%, in the average
balance. Investment securities decreased primarily due to the redeployment of
funds resulting from maturities and calls of investment securities into higher
yielding loans and mortgage-backed securities. Other interest-earning assets
decreased due to cash and cash equivalents being redeployed into higher yielding
assets.

Interest expense on deposits decreased $190,000, or 3.7% to $4.95 million during
the three months ended June 30, 2009, when compared to $5.14 million during the
same 2008 period. Such decrease was primarily attributable to a decrease of 52
basis points in the cost of interest-bearing deposits to 3.07% from 3.59%,
partially offset by an increase of $72.5 million, or 12.7% in the average
balance of interest-bearing deposits. Interest expense on borrowed money
decreased approximately $50,000, or 3.5% to $1.38 million during the three
months ended June 30, 2009 when compared with $1.43 million during the same 2008
period. Such decrease was primarily attributable to a decrease of $2.8 million,
or 2.0% in the average balance of borrowings, coupled with a decrease of 5 basis
points in the cost of borrowings to 3.86% from 3.91%.

Net interest income increased $389,000, or 9.3% during the three months ended
June 30, 2009, to $4.59 million when compared to $4.20 million for the same 2008
period. Such increase was due to a $152,000 increase in total interest income
coupled with a decrease in total interest expense of $237,000. Average
interest-earning assets increased $34.4 million, or 4.0% while average
interest-bearing liabilities increased $69.7 million, or 9.7%. The $34.4 million
increase in average interest-earning assets was mainly attributable to increases
of $40.3 million in loans and $25.9 million in mortgage-backed securities,

                                      -16-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2009 AND
2008 (CONT'D.)

partially offset by decreases of $12.4 million in investment securities and
$19.4 million in other interest-earning assets. Loans and mortgage-backed
securities increased primarily due to the redeployment of maturities and calls
of investment securities and growth in deposits into higher yielding assets.

Other interest-earning assets decreased due to cash and cash equivalents being
redeployed into higher yielding assets. The $69.7 million increase in average
interest-bearing liabilities was primarily due to an increase of $72.5 million
in interest-bearing deposits partially offset by a decrease of $2.8 million in
borrowings. The net interest rate spread increased 32 basis points due to a 45
basis points decrease in the cost of interest-bearing liabilities which was
partially offset by a decrease of 13 basis points in the yield earned on
interest-earning assets.

During the three months ended June 30, 2009 and 2008, the Bank recorded $100,000
and $-0-, respectively, for the provision for loan losses. The provision for the
2009 period was the result of both increases in non-performing loans and the
loan portfolio balances. Non-performing loans increased from $270,000 at June
30, 2008 to $1.4 million, or 418.5% at June 30, 2009, while gross loans
increased from $440.5 million at June 30, 2008 to $470.1 million, or 6.7% at
June 30, 2009. The allowance for loan losses is based on management's evaluation
of the risk inherent in the Bank's loan portfolio and gives due consideration to
the changes in general market conditions and in the nature and volume of the
Bank's loan activity. The Bank intends to continue to evaluate the need for a
provision for loan losses based on its periodic review of the loan portfolio and
general market conditions. At June 30, 2009 and June 30, 2008, the Bank's
non-performing loans, which were delinquent ninety days or more, and all of
which were in a non-accrual status, totaled $1.4 million and $270,000
respectively, and represented 0.30%, and 0.06%, respectively, of total gross
loans, and 0.14% and 0.03%, respectively, of total assets. During the three
months ended June 30, 2009 and 2008, the Bank did not charge off any loans. The
allowance for loan losses amounted to $1.8 million at June 30, 2009 and $1.7
million at March 31, 2009, representing 0.38% of total gross loans at June 30,
2009 and 0.36% of total gross loans at March 31, 2009.

Non-interest income was $290,000 for both the three months ended June 30, 2009
and 2008.

Non-interest expense increased by $770,000, or 27.0% to $3.62 million during the
three months ended June 30, 2009, when compared with $2.85 million during the
same 2008 period. The components of non-interest expense which experienced the
most significant change were federal deposit insurance premiums and
miscellaneous expenses, which increased by $616,000, or 3,798.7% and $131,000,
or 44.9%, respectively. The increase in federal deposit insurance premiums in
2009 was mostly due to an increase in the quarterly assessment rates for all
financial institutions, along with a special emergency assessment imposed by the
FDIC in order to cover the losses of the Deposit Insurance Fund that were
incurred from failed financial institutions in 2008, as well as anticipated
future losses. The increase in miscellaneous expenses was mostly due to a
$49,000 recovery of previously expensed consulting fees relating to litigation
reimbursement in the 2008 period, and increases of $12,000 in stationary,
printing and supplies, $17,000 in correspondent bank service fees, and $17,000
in loan expenses.

Income taxes totaled $307,000 and $500,000 during the three months ended June
30, 2009 and 2008, respectively. The decrease of $193,000, or 38.6% during the
2009 period resulted from lower pre-tax income, coupled with a decrease in the
overall effective income tax rate which was 26.7% in the 2009 period, compared
with 30.6% for 2008. The Company's effective tax rate decreases when overall
income decreases, as tax exempt income recognized from the increase in cash
surrender value of bank owned life insurance accounts for a larger percentage of
overall income.

                                      -17-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


LIQUIDITY AND CAPITAL RESOURCES

The Company maintains levels of liquid assets sufficient to ensure the Bank's
safe and sound operation. The Company adjusts its liquidity levels in order to
meet funding needs for deposit outflows, payment of real estate taxes from
escrow accounts on mortgage loans, repayment of borrowings, when applicable, and
loan funding commitments. The Company also adjusts its liquidity level as
appropriate to meet its asset/liability objectives. Liquid assets, which include
cash and cash equivalents and securities available for sale, totaled $166.2
million, or 16.6% of total assets at June 30, 2009 as compared to $139.3
million, or 14.5% of total assets at March 31, 2009.

The Company's liquidity, represented by cash and cash equivalents and securities
available for sale, is a product of its operating, investing and financing
activities.

The Company is a separate legal entity from the Bank and must provide for its
own liquidity. In addition to its operating expenses, the Company is responsible
for paying any dividends declared to its shareholders. The Company also has
repurchased shares of its common stock. The Company's primary source of income
is dividends received from the Bank. The amount of dividends that the Bank may
declare and pay to the Company in any calendar year, without the receipt of
prior approval from the OTS but with prior notice to the OTS, cannot exceed net
income for that year to date plus retained net income (as defined) for the
preceding two calendar years. At June 30, 2009, the Company had liquid assets of
$166.2 million.

Cash was generated by operating and financing activities during the three months
ended June 30, 2009. The primary source of cash was net income and a net
increase in deposits. The Company declared and paid a cash dividend during the
three months ended June 30, 2009, totaling $461,000.

The Company's primary investing activities are lending and the purchases of
securities. Net loans amounted to $468.8 million and $468.5 million at June 30,
2009 and March 31, 2009, respectively. Securities, including available for sale
and held to maturity issues, totaled $405.4 million and $394.4 million at June
30, 2009 and March 31, 2009, respectively. In addition to funding new loan
production through operating and financing activities, such activities were
funded by principal repayments and maturities on existing loans and securities.

Liquidity management is both a daily and long-term function of business
management. Excess liquidity is generally invested in short-term investments,
such as interest-bearing deposits. If the Bank requires funds beyond its ability
to generate them internally, the Bank can borrow funds from the FHLB up to
approximately $88.9 million under an overnight line of credit, and $88.9 million
under a one-month overnight repricing line of credit agreement. The Bank's
membership in FHLB also provides access to additional sources of borrowed funds
based on the Bank's ability to collateralize such borrowings. At June 30, 2009,
advances from the FHLB amounted to $142.2 million at a weighted average rate of
3.85%. Additionally, the Company has the ability to borrow funds at the Bank of
America and PNC Capital Markets under unsecured overnight lines of credit.

The Bank anticipates that it will have sufficient fund available to meet its
current commitments. At June 30, 2009, the Bank had outstanding commitments to
originate loans totaling approximately $16.9 million, which included $11.4
million for fixed-rate mortgage loans with interest rates ranging from 4.25% to
5.625%, $5.3 million for adjustable rate mortgage loans with initial rate
ranging from 4.625% to 6.50%, and $150,000 for an adjustable rate home equity
line of credit with an initial interest rate of 4.50%.

                                      -18-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                  ---------------------------------------------


LIQUIDITY AND CAPITAL RESOURCES (CONT'D)

At June 30, 2009, the Bank had outstanding commitments to purchase a $750,000
participation in a $5.8 million construction loan, a $750,000 participation in a
$7.3 million construction loan, and a $500,000 participation in a $3.0 million
construction loan, with adjustable interest rates of 3.00%, 2.50%, and 2.75%,
respectively, over the one month London Interbank Offering Rate. In addition,
the Bank has a commitment to purchase a $500,000 participation in a $1.7 million
construction loan with an adjustable interest rate at the Prime Rate.

At June 30, 2009, the Bank also had commitments outstanding to purchase $20.0
million in Federal National Mortgage Association mortgage-backed securities at
fixed interest rates of 4.50%.

At June 30, 2009, undisbursed funds from customer approved unused lines of
credit under a homeowners' equity lending program amounted to approximately $2.9
million. Unless they are specifically cancelled by notice from the Bank, these
funds represent firm commitments available to the respective borrowers on
demand.

Certificates of deposit scheduled to mature in one year or less at June 30,
2009, totaled $421.0 million, or 79.7% of our certificates of deposit.
Management believes that, based upon its experience and the Bank's deposit flow
history, a significant portion of such deposits will remain with the Bank. FHLB
advances scheduled to mature in one year or less at June 30, 2009, totaled $20.3
million.

Under OTS regulations, three separate measurements of capital adequacy (the
"Capital Rule") are required. The Capital Rule requires each savings institution
to maintain tangible capital equal of at least 1.5% and core capital equal of at
least 4.0% of its adjusted total assets. The Capital Rule further requires each
savings institution to maintain total capital equal of at least 8.0% of its
risk-weighted assets.

The following table sets forth the Bank's capital position at June 30, 2009, as
compared to the minimum regulatory capital requirements:
<TABLE>
<CAPTION>

                                                                                     OTS Requirements
                                                                 ------------------------------------------------------
                                                                      Minimum Capital           For Classification as
                                           Actual                        Adequacy                 Well-Capitalized
                                   --------------------------    --------------------------   -------------------------
                                       Amount        Ratio          Amount         Ratio         Amount        Ratio
                                   ---------------  ---------    -------------   ----------   -------------  ----------
                                                                  (Dollars In Thousands)
<S>                                    <C>           <C>            <C>             <C>          <C>           <C>
Total capital
   (to risk-weighted assets)           $150,822      41.03%         $29,408         8.00%        $36,761       10.00%
Tier 1 capital
   (to risk-weighted assets)            149,022      40.54           14,704         4.00          22,056        6.00
Core (tier 1) capital
   (to adjusted total assets)           149,022      15.06           39,589         4.00          49,486        5.00
Tangible capital
   (to adjusted tangible assets)        149,022      15.06           14,846         1.50               -           -
</TABLE>

                                                      -19-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     ITEM 3:
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
           ----------------------------------------------------------


MANAGEMENT OF INTEREST RATE RISK. The ability to maximize net interest income is
largely dependent upon the achievement of a positive interest rate spread that
can be sustained during fluctuations in prevailing interest rates. Interest rate
sensitivity is a measure of the difference between amounts of interest-earning
assets and interest-bearing liabilities which either reprice or mature within a
given period of time. The difference, or the interest rate repricing "gap",
provides an indication of the extent to which an institution's interest rate
spread will be affected by changes in interest rates. A gap is considered
positive when the amount of interest-rate sensitive assets exceeds the amount of
interest-rate sensitive liabilities, and is considered negative when the amount
of interest rate sensitive liabilities exceeds the amount of interest-rate
sensitive assets. Generally, during a period of rising interest rates, a
negative gap within shorter maturities would adversely affect net interest
income, while a positive gap within shorter maturities would result in an
increase in net interest income, and during a period of falling interest rates,
a negative gap within shorter maturities would result in an increase in net
interest income while a positive gap within shorter maturities would result in a
decrease in net interest income.

Because the Bank's interest-bearing liabilities which mature or reprice within
short periods exceed its interest-earning assets with similar characteristics,
material and prolonged increases in interest rates generally would adversely
affect net interest income, while material and prolonged decreases in interest
rates generally would have a positive effect on net interest income.

The Bank's current investment strategy is to maintain an overall securities
portfolio that provides a source of liquidity and that contributes to the Bank's
overall profitability and asset mix within given quality and maturity
considerations. Securities classified as available for sale provide management
with the flexibility to make adjustments to the portfolio given changes in the
economic or interest rate environment, to fulfill unanticipated liquidity needs,
or to take advantage of alternative investment opportunities.






                                      -20-




<PAGE>


                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
           ----------------------------------------------------------



NET PORTFOLIO VALUE. The Bank's interest rate sensitivity is monitored by
management through the use of the OTS model which estimates the change in the
Bank's net portfolio value ("NPV") over a range of interest rate scenarios. NPV
is the present value of expected cash flows from assets, liabilities, and
off-balance sheet contracts.

The NPV ratio, under any interest rate scenario, is defined as the NPV in that
scenario divided by the market value of assets in the same scenario. The OTS
produces its analysis based upon data submitted on the Bank's quarterly Thrift
Financial Report. The following table sets forth the Bank's NPV as of March 31,
2009, the most recent date the Bank's NPV was calculated by the OTS. Given the
current economic environment, the Bank expects that its NPV values as of June
30, 2009 may decline from those listed below. However, any such declines are
currently expected to be immaterial.

<TABLE>
<CAPTION>
                                                                             Net Portfolio Value as % of
                                      Net Portfolio Value                      Present Value of Assets
  Basis Points ("bp")   ----------------------------------------------  -------------------------------------
   Change in Rates         $ Amount        $ Change        % Change      NPV Ratio           Change
----------------------  ---------------- -------------  --------------  ----------------  -------------------
                                           (Dollars in Thousands)
         <S>                  <C>           <C>               <C>             <C>                  <C>
         300 bp               $ 119,256     $ (41,672)        (26)%           12.97 %              (338)bp
                        ---------------- -------------  --------------  ----------------  -------------------
         200                    138,976       (21,952)        (14)            14.68                (166)
                        ---------------- -------------  --------------  ----------------  -------------------
         100                    153,808        (7,121)         (4)            15.87                 (47)
                        ---------------- -------------  --------------  ----------------  -------------------
         50                     158,113        (2,816)         (2)            16.18                 (17)
                        ---------------- -------------  --------------  ----------------  -------------------
          0                     160,929             -           -             16.35                   -
                        ---------------- -------------  --------------  ----------------  -------------------
        (50)                    162,171         1,243           1             16.37                   3
                        ---------------- -------------  --------------  ----------------  -------------------
        (100)                   161,167           239           -             16.23                 (12)
                        ---------------- -------------  --------------  ----------------  -------------------
</TABLE>

Certain shortcomings are inherent in the methodology used in the above interest
rate risk measurements. Modeling changes in NPV require the making of certain
assumptions which may or may not reflect the manner in which actual yields and
costs respond to changes in market interest rates. In this regard, the NPV model
presented assumes that the composition of the Bank's interest sensitive assets
and liabilities existing at the beginning of a period remains constant over the
period being measured and also assumes that a particular change in interest
rates is reflected uniformly across the yield curve regardless of the duration
to maturity or repricing of specific assets and liabilities. Accordingly,
although the NPV measurements and net interest income models provide an
indication of the Bank's interest rate risk exposure at a particular point in
time, such measurements are not intended to and do not provide a precise
forecast of the effect of changes in market interest rates on the Bank's net
interest income and will differ from actual results.


                                      -21-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     ITEM 4:
                             CONTROLS AND PROCEDURES
      ---------------------------------------------------------------------


                  DISCLOSURE CONTROLS AND PROCEDURES. The Company's management,
         including the Company's principal executive officer and principal
         financial officer, have evaluated the effectiveness of the Company's
         "disclosure controls and procedures," as such term is defined in Rule
         13a-15(e) promulgated under the Securities Exchange Act of 1934, as
         amended, (the "Exchange Act"). Based upon their evaluation, the
         principal executive officer and principal financial officer concluded
         that, as of the end of the period covered by this report, the Company's
         disclosure controls and procedures were effective to ensure that
         information required to be disclosed in the reports that the Company
         files or submits under the Exchange Act with the Securities and
         Exchange Commission (the "SEC") (1) is recorded, processed, summarized
         and reported within the time periods specified in the SEC's rules and
         forms, and (2) is accumulated and communicated to the Company's
         management, including its principal executive and principal financial
         officers, as appropriate to allow timely decisions regarding required
         disclosure.

                  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING. There
         were no changes in the Company's internal control over financial
         reporting that occurred during the three months ended June 30, 2009
         that have materially affected, or are reasonably likely to materially
         affect, the Company's internal control over financial reporting.




                                      -22-



<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     PART II


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

         Periodically, there have been various claims and lawsuits against the
         Company and Bank, such as claims to enforce liens, condemnation
         proceedings on properties in which we hold security interests, claims
         involving the making and servicing of real property loans and other
         issues incident to our business. We are not a party to any pending
         legal proceedings that we believe would have a material adverse effect
         on our consolidated financial condition, results of operations or cash
         flows.


ITEM 1A: Risk Factors
         ------------

         In addition to the other information set forth in this report, you
         should carefully consider the factors discussed in Part I, "Item 1A.
         Risk Factors" in our Annual Report on Form 10-K for the year ended
         March 31, 2009 as filed with Securities and Exchange Commission on June
         12, 2009, which could materially affect our business, financial
         condition or future results. As of June 30, 2009, the risk factors of
         the Company have not changed materially from those recorded in our
         Annual Report on Form 10-K. However, the risks described in our Annual
         Report on Form 10-K are not the only risks that we face. Additional
         risks and uncertainties not currently known to us or that we currently
         deem to be immaterial also may materially adversely affect our
         business, financial condition and/or operating results.


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

         The following table sets forth information regarding the Company's
         repurchases of its common stock during the quarter ended June 30, 2009.
<TABLE>
<CAPTION>
                                                                         TOTAL NUMBER          MAXIMUM
                                                                          OF SHARES        NUMBER OF SHARES
                                        TOTAL                           PURCHASED AS      THAT MAY YET BE
                                      NUMBER OF        AVERAGE         PART OF PUBLICLY    PURCHASED UNDER
                                       SHARES         PRICE PAID        ANNOUNCED PLAN       THE PLANS OR
            PERIOD                   PURCHASED(1)     PER SHARE           OR PROGRAMS         PROGRAMS
--------------------------------    ------------   ----------------   -----------------   -----------------
<S>                                     <C>             <C>               <C>                 <C>
April 1 - April 30, 2009                   -               -                 -                316,165
May 1 - May 31, 2009                    22,887          $ 9.93            22,887              293,278
June 1 - June 30, 2009 (2)               2,241          $10.32             2,000              291,278
                                    -----------                        ------------
             TOTAL                      25,128          $ 9.97            24,887
                                    ===========                        ============
</TABLE>
--------------------------------
(1)   On February 24, 2009, the Company announced that the Board of Directors
      had approved its eighth stock repurchase program authorizing the Company
      to repurchase up to 350,000 shares of the Company's common stock.
(2)   Includes the repurchase of 241 shares of forfeited restricted stock due to
      a participant's discontinued employment with the Bank.

                                      -23-


<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     PART II


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

         None


ITEM 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

         None.


ITEM 5.  Other Information
         -----------------

         None.


ITEM 6.  Exhibits
         --------

         The following Exhibits are filed as part of this report.
<TABLE>
<CAPTION>
                  <S>     <C>
                  3.1     Certificate of Incorporation of Clifton Savings Bancorp, Inc.(1)
                  3.2     By-Laws of Clifton Savings Bancorp, Inc. (2)
                  4.1     Specimen Stock Certificate of Clifton Savings Bancorp, Inc.(1)
                  31.1    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-
                          Oxley Act of 2002 (filed herewith).
                  31.2    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-
                          Oxley Act of 2002 (filed herewith).
                  32.1    Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18
                          U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                          Act of 2002 (filed herewith).
                  --------------------------

                          (1)   Incorporated herein by reference to the Company's Annual Report on Form
                                10-K for the fiscal year ended March 31, 2004, filed with the Securities and
                                Exchange Commission on June 29, 2004 (File No. 000-50358).
                          (2)   Incorporated herein by reference to the Company's Current Report on Form
                                8-K filed with the Securities and Exchange Commission on October 26, 2008.
</TABLE>

                                                      -24-



<PAGE>

                                   SIGNATURES




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








                                   CLIFTON SAVINGS BANCORP, INC.


Date: August 7, 2009               By: /s/ John A. Celentano, Jr.
                                       -----------------------------------------
                                       John A. Celentano, Jr.
                                       Chairman of the Board and Chief Executive
                                        Officer
                                       (Principal Executive Officer)


Date: August 7, 2009               By: /s/ Christine R. Piano
                                       -----------------------------------------
                                       Christine R. Piano
                                       Chief Financial Officer and Treasurer
                                       (Principal Financial and Chief Accounting
                                        Officer)




                                      -25-