<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 December 31, 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 Data 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 February 1, 2010: 26,484,774 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 December 31, 2009 and March 31, 2009                                                       1

                     Consolidated Statements of Income (Unaudited) For the Three
                     and Nine months Ended December 31, 2009 and 2008                                              2

                     Consolidated Statements of Comprehensive Income (Unaudited) For the
                     Three and Nine months Ended December 31, 2009 and 2008                                        3

                     Consolidated Statements of Cash Flows (Unaudited) For the
                     Nine months Ended December 31, 2009 and 2008                                                4 - 5

                     Notes to Consolidated Financial Statements                                                  6 - 14

        Item 2:      Management's Discussion and Analysis of
                     Financial Condition and Results of Operations                                              15 - 23

        Item 3:      Quantitative and Qualitative Disclosures About Market Risk                                 24 - 25

        Item 4:      Controls and Procedures                                                                       26


PART II - OTHER INFORMATION

         Item 1:     Legal Proceedings                                                                             27

         Item 1A:    Risk Factors                                                                                  27

         Item 2:     Unregistered Sales of Equity Securities and Use of Proceeds                                   27

         Item 3:     Defaults Upon Senior Securities                                                               28

         Item 4:     Submission of Matters to a Vote of Security Holders                                           28

         Item 5:     Other Information                                                                             28

         Item 6:     Exhibits                                                                                      29


SIGNATURES                                                                                                         30
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                         CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                         ----------------------------------------------
                   (In Thousands, Except Share and Per Share Data, Unaudited)

                                                                      December 31, March 31,
ASSETS                                                                   2009        2009
------                                                                ----------- ------------
<S>                                                                   <C>         <C>
Cash and due from banks                                               $   18,874  $    39,669
Interest-bearing deposits in other banks                                   8,024       11,457
                                                                      ----------- ------------
          Total cash and cash equivalents                                 26,898       51,126
Securities available for sale, at fair value:
    Investment                                                            15,097       10,037
    Mortgage-backed                                                       61,506       78,122
Securities held to maturity, at cost:
    Investment, fair value of $134,180
          and $75,754, respectively                                      134,968       74,997
    Mortgage-backed, fair value of $297,355
          and $240,173, respectively                                     289,174      231,218

Loans receivable                                                         485,635      470,200
Allowance for loan losses                                                 (2,050)      (1,700)
                                                                      ----------- ------------
          Net loans                                                      483,585      468,500
                                                                      ----------- ------------

Bank owned life insurance                                                 22,629       21,948
Premises and equipment                                                     9,731        9,306
Federal Home Loan Bank of New York stock                                   7,600        7,740
Interest receivable                                                        4,076        4,313
Other assets                                                               4,903        2,463
                                                                      ----------- ------------
          Total assets                                                $1,060,167  $   959,770
                                                                      =========== ============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
    Deposits:
       Non-interest bearing                                           $    6,352  $     5,263
       Interest bearing                                                  735,868      628,319
                                                                      ----------- ------------
          Total deposits                                                 742,220      633,582

    Advances from Federal Home Loan Bank of New York                     133,581      144,272
    Advance payments by borrowers for taxes and insurance                  5,042        4,825
    Other liabilities and accrued expenses                                 4,086        3,927
                                                                      ----------- ------------
          Total liabilities                                              884,929      786,606
                                                                      ----------- ------------

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; 26,525,145 shares outstanding
          at December 31, 2009; 26,732,607 shares outstanding at
          March 31, 2009                                                     305          305
    Paid-in capital                                                      135,937      135,180
    Deferred compensation obligation under Rabbi Trust                       228          209
    Retained earnings                                                     87,662       84,889
    Treasury stock, at cost; 4,005,325 shares at December 31, 2009
          and 3,797,863 shares at March 31, 2009                         (43,906)     (41,925)
    Common stock acquired by Employee Stock Ownership Plan                (6,595)      (7,144)
    Accumulated other comprehensive income                                 1,794        1,809
    Stock held by Rabbi Trust                                               (187)        (159)
                                                                      ----------- ------------
          Total stockholders' equity                                     175,238      173,164
                                                                      ----------- ------------
          Total liabilities and stockholders' equity                  $1,060,167  $   959,770
                                                                      =========== ============
See notes to consolidated financial statements.
</TABLE>

                                                      -1-

<PAGE>
<TABLE>
<CAPTION>

                                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                        CONSOLIDATED STATEMENTS OF INCOME
                                 ----------------------------------------------
                           (In Thousands, Except Share and Per Share Data, Unaudited)

                                                                   Three Months                     Nine Months
                                                                Ended December 31,                Ended December 31,
                                                          --------------------------------  -------------------------------
                                                               2009             2008            2009             2008
                                                          ---------------  ---------------  --------------  ---------------
<S>                                                        <C>              <C>              <C>             <C>
Interest income:
    Loans                                                  $       6,201    $       6,245    $     18,423    $      17,860
    Mortgage-backed securities                                     4,371            4,292          12,696           11,982
    Investment securities                                            663              758           2,052            2,851
    Other interest-earning assets                                    120               87             347              613
                                                          ---------------  ---------------  --------------  ---------------
             Total interest income                                11,355           11,382          33,518           33,306
                                                          ---------------  ---------------  --------------  ---------------
Interest expense:
    Deposits                                                       4,182            5,056          13,783           15,114
    Advances                                                       1,302            1,450           4,055            4,451
                                                          ---------------  ---------------  --------------  ---------------
             Total interest expense                                5,484            6,506          17,838           19,565
                                                          ---------------  ---------------  --------------  ---------------
Net interest income                                                5,871            4,876          15,680           13,741
Provision for loan losses                                              -                -             433              115
                                                          ---------------  ---------------  --------------  ---------------
Net interest income after provision for loan losses                5,871            4,876          15,247           13,626
                                                          ---------------  ---------------  --------------  ---------------
Non-interest income:
    Fees and service charges                                          56               48             170              150
    Bank owned life insurance                                        227              232             682              688
    Other                                                              6                8              19               25
                                                          ---------------  ---------------  --------------  ---------------
             Total non-interest income                               289              288             871              863
                                                          ---------------  ---------------  --------------  ---------------
Non-interest expenses:
    Salaries and employee benefits                                 1,637            1,660           5,168            5,073
    Occupancy expense of premises                                    325              278             863              767
    Equipment                                                        251              221             693              641
    Directors' compensation                                          196              229             643              713
    Legal                                                             54               51             159               53
    Advertising                                                       81               49             220              223
    Federal insurance premium                                        166               23             986               63
    Other                                                            456              384           1,296            1,034
                                                          ---------------  ---------------  --------------  ---------------
             Total non-interest expenses                           3,166            2,895          10,028            8,567
                                                          ---------------  ---------------  --------------  ---------------
Income before income taxes                                         2,994            2,269           6,090            5,922
Income taxes                                                       1,012              724           1,943            1,881
                                                          ---------------  ---------------  --------------  ---------------
Net income                                                 $       1,982    $       1,545    $      4,147    $       4,041
                                                          ===============  ===============  ==============  ===============
Net income per common share:
    Basic                                                  $        0.08    $        0.06    $       0.16    $        0.15
                                                          ===============  ===============  ==============  ===============
    Diluted                                                $        0.08    $        0.06    $       0.16    $        0.15
                                                          ===============  ===============  ==============  ===============
Dividends per common share                                 $        0.05    $        0.05    $       0.15    $        0.15
                                                          ===============  ===============  ==============  ===============

Weighted average number of common shares and
  common stock equivalents outstanding:
    Basic                                                     25,939,596       26,054,266      25,993,452       26,168,305
                                                          ===============  ===============  ==============  ===============
    Diluted                                                   25,939,596       26,135,932      25,993,452       26,213,994
                                                          ===============  ===============  ==============  ===============
</TABLE>
See notes to consolidated financial statements.
                                                                -2-

<PAGE>
<TABLE>
<CAPTION>
                                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                 ----------------------------------------------
                                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                            (In Thousands, Unaudited)

                                                                              Three Months                 Nine Months
                                                                           Ended December 31,           Ended December 31,
                                                                       --------------------------  ---------------------------
                                                                           2009         2008           2009          2008
                                                                       ------------- ------------  -------------  ------------
<S>                                                                      <C>          <C>            <C>           <C>
Net income                                                               $    1,982   $    1,545     $    4,147    $    4,041
                                                                       ------------- ------------  -------------  ------------
Other comprehensive income (loss):
    Gross unrealized holding gain (loss) on securities available for sale,
      net of income (benefit) taxes of $(190) and $917,
      $(23) and $387, respectively                                             (286)       1,379            (35)          582
    Benefit plans, net of income taxes of $4 and $8,
      $13 and $24, respectively                                                   7           12             20            36
                                                                       ------------- ------------  -------------  ------------
Other comprehensive (loss) income                                              (279)       1,391            (15)          618
                                                                       ------------- ------------  -------------  ------------
Comprehensive income                                                     $    1,703   $    2,936     $    4,132    $    4,659
                                                                       ============= ============  =============  ============
</TABLE>
See notes to consolidated financial statements.

                                                       -3-

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

                                                                                              Nine Months
                                                                                           Ended December 31,
                                                                                       --------------------------
                                                                                           2009          2008
                                                                                       ------------  ------------
<S>                                                                                      <C>           <C>
Cash flows from operating activities:
    Net income                                                                           $   4,147     $   4,041
    Adjustments to reconcile net income to net cash provided by operating activities:
       Depreciation and amortization of premises and equipment                                 352           365
       Net (accretion) amortization  of deferred fees and costs, premiums and discounts       (103)           82
       Amortization component of net periodic benefit cost                                      33            58
       Provision for loan losses                                                               433           115
       Decrease in interest receivable                                                         236           432
       Deferred income tax benefit                                                            (108)         (105)
       (Increase) decrease in other assets                                                  (2,322)          269
       (Decrease) in accrued interest payable                                                  (44)           (2)
       Increase (decrease) in other liabilities                                                203          (105)
       Increase in cash surrender value of bank owned life insurance                          (682)         (688)
       ESOP shares committed to be released                                                    562           584
       Restricted stock expense                                                                706           797
       Stock option expense                                                                     66           206
       Increase in deferred compensation obligation under Rabbi Trust                           19            23
                                                                                       ------------  ------------
          Net cash provided by operating activities                                          3,498         6,072
                                                                                       ------------  ------------

Cash flows from investing activities: Proceeds from calls, maturities and
    repayments of:
       Mortgage-backed securities available for sale                                        16,570         8,562
       Investment securities held to maturity                                               45,000        50,000
       Mortgage-backed securities held to maturity                                          55,117        21,843
    Redemptions of Federal Home Loan Bank of New York stock                                    796           960
    Purchases of:
       Investment securities available for sale                                             (5,000)            -
       Investment securities held to maturity                                             (104,967)            -
       Mortgage-backed securities held to maturity                                        (112,911)      (87,539)
       Loans receivable                                                                     (2,801)       (3,828)
       Premises and equipment                                                                 (778)         (478)
       Federal Home Loan Bank of New York stock                                               (656)       (1,255)
    Net (increase) in loans receivable                                                     (12,850)      (41,684)
                                                                                       ------------  ------------
          Net cash used in investing activities                                           (122,480)      (53,419)
                                                                                       ------------  ------------
</TABLE>
See notes to consolidated financial statements.

                                                       -4-

<PAGE>
<TABLE>
<CAPTION>
                         CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                         ----------------------------------------------
                         CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)
                                    (In Thousands, Unaudited)
                                                                                              Nine Months
                                                                                           Ended December 31,
                                                                                       --------------------------
                                                                                           2009          2008
                                                                                       ------------  ------------
<S>                                                                                     <C>           <C>
Cash flows from financing activities:
    Net increase in deposits                                                            $  108,638    $   31,081
    Proceeds from long-term advances from Federal Home Loan Bank of New York                     -        25,000
    Principal payments on advances from Federal Home Loan Bank of New York                 (10,691)      (20,994)
    Net increase in payments by borrowers for taxes and insurance                              217           419
    Minority dividends paid                                                                 (1,374)       (1,410)
    Purchase of treasury stock                                                              (2,005)       (5,573)
    Income (benefit) taxes from stock based compensation                                       (31)           76
                                                                                       ------------  ------------
          Net cash provided by financing activities                                         94,754        28,599
                                                                                       ------------  ------------

Net (decrease) in cash and cash equivalents                                                (24,228)      (18,748)
Cash and cash equivalents - beginning                                                       51,126        52,231
                                                                                       ------------  ------------
Cash and cash equivalents - ending                                                      $   26,898    $   33,483
                                                                                       ============  ============
Supplemental information:
    Cash paid during the period for:
       Interest on deposits and borrowings                                              $   17,882    $   19,566
                                                                                       ============  ============
       Income taxes paid, net of refunds                                                $    1,947    $    1,851
                                                                                       ============  ============
</TABLE>
See notes to consolidated financial statements.

                                                      -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 States 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 nine
month period ended December 31, 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 2009 Annual Report on Form
10-K as filed with the Securities and Exchange Commission on June 12, 2009.

In preparing these consolidated financial statements, the Company has evaluated
subsequent events and transactions that occurred after December 31, 2009 through
February 9, 2010.

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 and deferred compensation obligations required
to be settled in shares of Company stock. Unvested restricted stock awards,
which contain rights to non-forfeitable dividends, are considered participating
securities and the two-class method of computing basic and diluted EPS is
applied. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock, such as 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 options) or which could be converted into common
stock, if dilutive, using the treasury stock method. The calculation of diluted
EPS for the three and nine months ended December 31, 2009, does not include
incremental shares related to outstanding stock options due to their
anti-dilutive impact. The calculation of diluted EPS for the three and nine
months ended December 31, 2008, includes incremental shares related to
outstanding stock options of 81,666 and 45,689, 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 and nine months ended December 31, 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 and $2.5 million, respectively,
on the shares of Company common stock it owned during those periods. The
cumulative amount of dividends waived by the MHC through December 31, 2009 was
$18.3 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
common stock, representing approximately 3% of the outstanding shares owned by
entities other than the MHC on that date. During the three and nine months ended
December 31, 2009, 151,593 and 191,099 shares were repurchased under this plan,
respectively, at a total cost of approximately $1.4 million, or $9.44 per share,
and $1.8 million, or $9.57 per share, respectively. At December 31, 2009, there
remained 125,066 shares to be purchased under this eighth 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:

<TABLE>
<CAPTION>
                                                      Three Months Ended               Nine Months Ended
                                                         December 31,                     December 31,
                                                -------------------------------  ------------------------------
                                                    2009             2008            2009            2008
                                                --------------   --------------  --------------  --------------
                                                                       (In Thousands)
<S>                                               <C>              <C>             <C>             <C>
Service cost                                      $        21      $        22     $        61     $        66
Interest cost                                              38               36             114             108
Amortization of past service cost                          13               22              37              66
Amortization of unrecognized net (gain)                    (2)              (2)             (4)             (6)
                                                --------------   --------------  --------------  --------------

Net periodic benefit cost                         $        70      $        78     $       208     $       234
                                                ==============   ==============  ==============  ==============
</TABLE>

                                             -7-
<PAGE>
<TABLE>
<CAPTION>
                        CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           ------------------------------------------

7. INVESTMENT SECURITIES
------------------------
                                                                            DECEMBER 31, 2009
                                                           -------------------------------------------------------
                                                                            GROSS         GROSS
                                                            AMORTIZED     UNREALIZED    UNREALIZED       FAIR
                                                              COST          GAINS         LOSSES        VALUE
                                                           ------------  ------------- ------------- -------------
                                                                              (IN THOUSANDS)
<S>                                                          <C>            <C>           <C>          <C>
Available for sale:
   Debt securities:
      U.S. Government (including agencies) maturing:
           After one but within five years                   $  15,000      $      97     $       -    $   15,097
                                                           ------------  ------------- ------------- -------------
                                                             $  15,000      $      97     $       -    $   15,097
                                                           ============  ============= ============= =============
HELD TO MATURITY:
   Debt securities:
      U.S. Government (including agencies) maturing:
           After one but within five years                   $  75,000      $     203     $     152    $   75,051
           After five but within ten years                      24,983              -           228        24,755
           After ten years                                      34,985              -           611        34,374
                                                           ------------  ------------- ------------- -------------
                                                             $ 134,968      $     203     $     991    $  134,180
                                                           ============  ============= ============= =============

There were no sales of investment securities available for sale or held to
maturity during the three and nine months ended December 31, 2009.

The age of gross unrealized losses and the fair value of related investment
securities were as follows:
                                               LESS THAN 12 MONTHS      12 MONTHS OR MORE              TOTAL
                                           ------------------------- ------------------------ ------------------------
                                                          GROSS                    GROSS                     GROSS
                                                        UNREALIZED               UNREALIZED                UNREALIZED
                                           FAIR VALUE     LOSSES     FAIR VALUE    LOSSES     FAIR VALUE     LOSSES
                                           ------------ ------------ ----------- ------------ ------------ -----------
                                                                       (IN THOUSANDS)
December 31, 2009:
U.S. Government (including agencies):
    Held to maturity                          $ 78,977     $    991     $     -      $     -     $ 78,977     $   991
                                           ------------ ------------ ----------- ------------ ------------ -----------
                                              $ 78,977     $    991     $     -      $     -     $ 78,977     $   991
                                           ============ ============ =========== ============ ============ ===========
</TABLE>

Management does not believe that any of the unrealized losses at December 31,
2009 (sixteen investment 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.

                                      -8-

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

8. MORTGAGE-BACKED SECURITIES
-----------------------------
                                                                        DECEMBER 31, 2009
                                                     --------------------------------------------------------
                                                                      GROSS          GROSS
                                                      AMORTIZED     UNREALIZED    UNREALIZED        FAIR
                                                         COST         GAINS         LOSSES         VALUE
                                                     ------------- -------------  ------------  -------------
                                                                        (IN THOUSANDS)
<S>                                                     <C>             <C>          <C>           <C>
AVAILABLE FOR SALE:
    Federal Home Loan Mortgage Corporation              $  26,047       $ 1,301      $      -      $  27,348
    Federal National Mortgage Association                  32,506         1,652             -         34,158
                                                     ------------- -------------  ------------  -------------
                                                        $  58,553       $ 2,953      $      -      $  61,506
                                                     ============= =============  ============  =============
HELD TO MATURITY:
    Federal Home Loan Mortgage Corporation              $ 122,766       $ 5,349      $    244      $ 127,871
    Federal National Mortgage Association                 104,117         2,953           344        106,726
    Governmental National Mortgage Association             62,291           617           150         62,758
                                                     ------------- -------------  ------------  -------------
                                                        $ 289,174       $ 8,919      $    738      $ 297,355
                                                     ============= =============  ============  =============
</TABLE>
Contractual maturity data for mortgage-backed securities is as follows:

                                                          DECEMBER 31, 2009
                                                     ---------------------------
                                                      AMORTIZED
                                                         COST       FAIR VALUE
                                                     ------------- -------------
                                                           (IN THOUSANDS)
AVAILABLE FOR SALE:
    Due after five through ten years                  $    14,328   $    15,016
    Due after ten years                                    44,225        46,490
                                                     ------------- -------------
                                                      $    58,553   $    61,506
                                                     ============= =============
HELD TO MATURITY:
    Due within one year                               $         8   $         8
    Due after one through five years                          196           208
    Due after five through ten years                       18,973        19,866
    Due after ten years                                   269,997       277,273
                                                     ------------- -------------
                                                      $   289,174   $   297,355
                                                     ============= =============

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
                                                     ------------  -----------  -----------  -----------  ------------ ------------
                                                                                  (IN THOUSANDS)
<S>                                                     <C>          <C>           <C>          <C>          <C>          <C>
December 31, 2009:
Held to maturity:
    Federal Home Loan Mortgage Corporation              $  9,687     $    243      $   340      $     1      $ 10,027     $    244
    Federal National Mortgage Association                 26,992          337        1,131            7        28,123          344
    Governmental National Mortgage Association            27,666          149           74            1        27,740          150
                                                     ------------  -----------  -----------  -----------  ------------ ------------
                                                        $ 64,345     $    729      $ 1,545      $     9      $ 65,890     $    738
                                                     ============  ===========  ===========  ===========  ============ ============
</TABLE>
Management does not believe that any of the unrealized losses at December 31,
2009 (five GNMA, five FHLMC, and fifteen FNMA 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 three and nine months ended December 31, 2009.

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

Accounting Standards Codification ("ASC") Topic 820 "Fair Value Measurements and
Disclosures" 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 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).

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.

                                      -10-
<PAGE>

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


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

For assets measured at fair value on a recurring basis, the fair value
measurements by level within the fair value hierarchy used at December 31, 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
------------------------------------------------   ------------  ----------------- ---------    ------------
                                                                      (IN THOUSANDS)
<S>                                                   <C>             <C>            <C>              <C>
DECEMBER 31, 2009:
Securities available for sale:
    Mortgage-backed securities:
       Federal Home Loan Mortgage Corporation         $ 27,348        $      -       $ 27,348         $     -
       Federal National Mortgage Association            34,158               -         34,158               -
    U.S. Government (including agencies)                15,097               -         15,097               -
                                                   ------------   -------------   ------------    ------------
          Total securities available for sale         $ 76,603        $      -       $ 76,603         $     -
                                                   ============   =============   ============    ============
MARCH 31, 2009:
Securities available for sale:
    Mortgage-backed securities:
       Federal Home Loan Mortgage Corporation         $ 34,823        $      -       $ 34,823         $     -
       Federal National Mortgage Association            43,299               -         43,299               -
    U.S. Government (including agencies)                10,037               -         10,037               -
                                                   ------------   -------------   ------------    ------------
          Total securities available for sale         $ 88,159        $      -       $ 88,159         $     -
                                                   ============   =============   ============    ============
</TABLE>

There are no assets or liabilities measured at fair value on a non-recurring
basis at December 31, 2009 and March 31, 2009.

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.

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.

                                      -11-

<PAGE>

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


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

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. The Company's broker provides
it with prices which are categorized as Level 2 since quoted prices in active
markets for identical assets are generally not available.

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 December 31, 2009 and March 31, 2009, the fair value of the commitments to
extend credit were not considered to be material.

                                      -12-

<PAGE>

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


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

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

                                                      DECEMBER 31, 2009
                                               ---------------------------------
                                                  CARRYING
                                                    VALUE         FAIR VALUE
                                               ---------------- ----------------
                                                         (IN THOUSANDS)
Financial assets:
    Cash and cash equivalents                     $   26,898       $   26,898
    Securities available for sale:
        Investment                                    15,097           15,097
        Mortgage-backed                               61,506           61,506
    Securities held to maturity:
        Investment                                   134,968          134,180
        Mortgage-backed                              289,174          297,355
    Net loans receivable                             483,585          490,148
    Federal Home Loan Bank of New York stock           7,600            7,600
    Interest receivable                                4,076            4,076
Financial liabilities:
    Deposits                                         742,220          746,598
    FHLB advances                                    133,581          141,300
    Interest payable                                     510              510


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

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 (codified into ASC Topic
715), "Employers' Disclosures about Postretirement Benefit Plan Assets". This
FSP amended 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 ASC Topic 715 shall be provided for fiscal years ending after
December 15, 2009. The Company does not expect this new standard will have a
material effect on its consolidated financial statements.

                                      -13-

<PAGE>

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


10. RECENT ACCOUNTING PRONOUNCEMENTS (CONT'D)
---------------------------------------------

In August 2009, the FASB issued Accounting Standards Update ("ASU") 2009-05,
"Fair Value Measurements and Disclosures (Topic 820): Measuring Liabilities at
Fair Value." The amendments within ASU 2009-05 clarify that in circumstances in
which a quoted price in an active market for the identical liability is not
available, a reporting entity is required to measure fair value using (1) a
valuation technique that uses a quoted price of the identical liability when
traded as an asset or quoted prices for similar liabilities or similar
liabilities when traded as assets, or (2) another valuation technique that is
consistent with the principles of Topic 820. Two examples would be an income
approach, such as a present value technique, or a market approach, such as a
technique that is based on the amount at the measurement date that the reporting
entity would pay to transfer the identical liability or would receive to enter
into the identical liability. When estimating the fair value of a liability, a
reporting entity is not required to include a separate input or adjustment to
other inputs relating to the existence of a restriction that prevents the
transfer of the liability. Both a quoted price in an active market for the
identical liability at the measurement date and the quoted price for the
identical liability when traded as an asset in an active market when no
adjustments to the quoted price of the asset are required are Level 1 fair value
measurements. This guidance is effective for the first reporting period
(including interim periods) beginning after August 2009. The adoption of this
new standard did not have a material impact on the Company's consolidated
financial statements.

In January 2010, the FASB issued ASU 2010-06, "Fair Value Measurements and
Disclosures (Topic 820)". The amendments with ASU 2010-06 require new
disclosures as follows: (1) A reporting entity should disclose separately the
amounts of significant transfers in and out of Level 1 and Level 2 fair value
measurements and describe the reasons for the transfers.(2) In the
reconciliation for fair value measurements using significant unobservable inputs
(Level 3), a reporting entity should present separately information about
purchases, sales, issuances, and settlements (that is, on a gross basis rather
than as one net number). This update provides amendments to Subtopic 820-10 that
clarify existing disclosures as follows: (1) A reporting entity should provide
fair value measurement disclosures for each class of assets and liabilities. A
class is often a subset of assets or liabilities within a line item in the
statement of financial position. A reporting entity needs to use judgment in
determining the appropriate classes of assets and liabilities. (2) Disclosures
about inputs and valuation techniques. A reporting entity should provide
disclosures about the valuation techniques and inputs used to measure fair value
for both recurring and nonrecurring fair value measurements. Those disclosures
are required for fair value measurements that fall in either Level 2 or Level
3.This update also includes conforming amendments to the guidance on employers'
disclosures about postretirement benefit plan assets (Subtopic 715-20). The
conforming amendments to Subtopic 715-20 change the terminology from MAJOR
CATEGORIES of assets to CLASSES of assets and provide a cross reference to the
guidance in Subtopic 820-10 on how to determine appropriate classes to present
fair value disclosures. The new disclosures and clarifications of existing
disclosures are effective for interim and annual reporting periods beginning
after December 15, 2009, except for the disclosures about purchases, sales,
issuances, and settlements in the roll forward of activity in Level 3 fair value
measurements. Those disclosures are effective for fiscal years beginning after
December 15, 2010, and for interim periods within those fiscal years. The
Company's does not expect this new standard will have a material impact on its
consolidated financial statements.


                                      -14-
<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 47.2% and 45.6%, respectively, of total
assets at December 31, 2009, as compared to 41.1% and 48.8%, respectively, at
March 31, 2009. Cash and cash equivalents decreased to 2.5% of total assets at
December 31, 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 $108.6 million, or
17.1%, between March 31, 2009 and December 31, 2009, and borrowed funds
decreased by $10.7 million, or 7.4%, during this period. Borrowed funds totaled
$133.6 million at December 31, 2009 as compared to $144.3 million at March 31,
2009. During the nine months ended December 31, 2009, $10.7 million of long-term
borrowings were repaid in accordance with their original terms, while one $7.0
million short-term borrowing at a rate of 0.54% was originated and repaid during
the period.

Net interest income increased $995,000, or 20.4%, during the three months ended
December 31, 2009, when compared with the same 2008 period. The increase in net
interest income was due to a $1.0 million decrease in total interest expense
coupled with a decrease in total interest income of $27,000. Average
interest-earning assets increased $102.9 million, or 11.7%, during the three
months ended December 31, 2009, while average interest-bearing liabilities
increased $111.0 million, or 15.0%. The $8.1 million decrease in average net
interest-earning assets was mainly attributable

                                      -15-
<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)

to an increase of $123.3 million in average interest-bearing deposits, partially
offset by increases of $102.9 million in average interest-earning assets and a
decrease of $12.3 million in average borrowings. The net interest rate spread
increased 37 basis points during the three months ended December 31, 2009 to
2.05% from 1.68%. This was due to a 93 basis point decrease in the cost of
interest-bearing liabilities which was partially offset by a decrease of 56
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 December 31, 2009, non-interest income increased
$1,000, or 0.35%, to $289,000, as compared with $288,000 for the same 2008
period. There was no provision for loan losses recorded during the three months
ended December 31, 2009 and 2008, and non-interest expenses increased $271,000,
or 9.4% between periods.

CHANGES IN FINANCIAL CONDITION

The Company's assets at December 31, 2009 totaled $1.06 billion, which
represents an increase of $100.4 million or 10.5% as compared with $959.8
million at March 31, 2009.

Cash and cash equivalents decreased $24.2 million, or 47.4% to $26.9 million at
December 31, 2009 as compared to $51.1 million at March 31, 2009, as funds were
redeployed into higher yielding assets.

Securities available for sale at December 31, 2009 decreased $11.6 million, or
13.2% to $76.6 million from $88.2 million at March 31, 2009. The decrease during
the nine months ended December 31, 2009 resulted primarily from repayments
totaling $16.6 million, and a decrease in the unrealized gain of $58,000 on the
portfolio, partially offset by a purchase of $5.0 million.

Securities held to maturity at December 31, 2009 increased $117.9 million or
38.5% to $424.1 million from $306.2 million at March 31, 2009. The increase
during the nine months ended December 31, 2009, resulted primarily from
purchases of securities totaling $217.9 million partially offset by maturities,
calls and repayments totaling $100.0 million.

Net loans at December 31, 2009 increased $15.1 million or 3.2% to $483.6 million
when compared with $468.5 million at March 31, 2009. The increase during the
nine months ended December 31, 2009, resulted primarily from internal
origination and refinance volume, primarily in residential real estate loans,
which more than offset repayment levels. The largest increase in the loan
portfolio was in residential real estate loans which increased $14.4 million, or
3.3%.

Total liabilities increased $98.3 million, or 12.5% to $884.9 million at
December 31, 2009 from $786.6 million at March 31, 2009. Deposits at December
31, 2009 increased $108.6 million, or 17.1% to $742.2 million when compared with
$633.6 million at March 31, 2009, as the Bank continued to offer very
competitive rates on its deposit products and opened a new branch office in
November 2009. Borrowed funds decreased $10.7 million, or 7.4% to $133.6 million
at December 31, 2009, as compared with $144.3 million at March 31, 2009. During
the period ended December 31, 2009, $10.7 million of long-term borrowings were
repaid in accordance with their original terms. At December 31, 2009, the
Company's remaining borrowings of $133.6 million had an average interest rate of
3.81%.

Stockholders' equity totaled $175.2 million and $173.2 million at December 31,
2009 and March 31, 2009, respectively. The increase of $2.0 million, or 1.2%,
for the nine months ended December 31, 2009, resulted primarily from net income
of $4.1 million, ESOP shares committed to be released of $562,000,

                                      -16-
<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)

and $741,000 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 210,000 shares of Company common stock for an
aggregate of $2.0 million and aggregate cash dividends paid of $1.4 million.

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2009
AND 2008

Net income increased $437,000, or 28.3% to $1.98 million for the three months
ended December 31, 2009 compared with $1.55 million for the same 2008 period.
The increase in net income during the 2009 period primarily was the result of an
increase in net interest income of $1.0 million mostly due to a decrease in
interest expense of $1.0 million, partially offset by an increase in non
interest expense of $271,000 and an increase of $288,000 in income taxes.

Interest income on loans decreased by $44,000, or 0.7% to $6.20 million during
the three months ended December 31, 2009, when compared with $6.25 million for
the same 2008 period. The decrease during the 2009 period resulted from a
decrease in the yield earned on the loan portfolio of 24 basis points to 5.10%
from 5.34%, partially offset by an increase of $18.4 million, or 3.9% in average
balance when compared to the same period in 2008. Interest income on
mortgage-backed securities increased $79,000, or 1.8% to $4.37 million during
the three months ended December 31, 2009, when compared with $4.29 million for
the same 2008 period. The increase during the 2009 period resulted from an
increase of $31.6 million, or 9.7% in the average balance of mortgage-backed
securities outstanding, partially offset by a decrease in the yield earned on
mortgage-backed securities outstanding of 38 basis points to 4.91% from 5.29%.
Interest earned on investment securities decreased by $95,000, or 12.5% to
$663,000 during the three months ended December 31, 2009, when compared to
$758,000 during the same 2008 period, due to a decrease in the average yield of
243 basis points to 2.33% from 4.76%, partially offset by an increase of $50.1
million, or 78.6%, in the average balance when compared to the same period in
2008. Interest earned on other interest-earning assets increased by $33,000, or
37.9% to $120,000 during the three months ended December 31, 2009, when compared
to $87,000 during the same 2008 period primarily due to an increase of 36 basis
points in yield to 2.00% from 1.64%, coupled with an increase of $2.8 million,
or 13.1%, in the average balance of other interest-earning assets.

Interest expense on deposits decreased $874,000, or 17.3% to $4.18 million
during the three months ended December 31, 2009, when compared to $5.06 million
during the same 2008 period. Such decrease was primarily attributable to a
decrease of 109 basis points in the cost of interest-bearing deposits to 2.34%
from 3.43%, partially offset by an increase of $123.4 million, or 20.9% in the
average balance of interest-bearing deposits. The decrease in the average cost
of deposits reflected lower market interest rates. Interest expense on borrowed
money decreased approximately $148,000, or 10.2% to $1.30 million during the
three months ended December 31, 2009 when compared with $1.45 million during the
same 2008 period. Such decrease was primarily attributable to a decrease of
$12.3 million, or 8.2% in the average balance of borrowings, coupled with a
decrease of 9 basis points in the cost of borrowings to 3.77% from 3.86%. The
decrease in the cost of borrowings was a result of existing borrowings at higher
rates being repaid in accordance with their original terms.

Net interest income increased $995,000 million, or 20.4% during the three months
ended December 31, 2009, to $5.87 million when compared to $4.88 million for the
same 2008 period. Such increase was due

                                      -17-

<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 DECEMBER 31, 2009 AND
2008 (CONT'D.)

to a $1.0 million decrease in total interest expense, partially offset by a
decrease in total interest income of $27,000. Average interest-earning assets
increased $102.9 million, or 11.7% while average interest-bearing liabilities
increased $111.0 million, or 15.0%. The $102.9 million increase in average
interest-earning assets was attributable to increases of $18.4 million in
average loans, $31.6 million in average mortgage-backed securities, $50.1
million in average investment securities and $2.8 million in average other
interest earning assets. These assets increased primarily due to the deployment
of funds resulting from a significant growth in deposits. The $111.0 million
increase in average interest-bearing liabilities was primarily due to an
increase of $123.3 million in average interest-bearing deposits partially offset
by a decrease of $12.3 million in average borrowings. The net interest rate
spread increased 37 basis points to 2.05% as a 56 basis point decrease to 4.63%
in the average yield earned on interest-earning assets was more than offset by a
decrease of 93 basis points to 2.58% in the average cost of interest-bearing
liabilities.

There was no provision for loan losses recorded during the three months ended
December 31, 2009 and 2008. 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 December 31, 2009 and
December 31, 2008, the Bank's non-performing loans, all of which were delinquent
ninety days or more, and all of which were in a nonaccrual status, totaled $1.9
million and $444,000 respectively, representing 0.39% and 0.10%, respectively,
of total gross loans, and 0.18% and 0.05%, respectively, of total assets at the
end of each period. At March 31, 2009, nonaccrual loans totaled 870,000, or
0.19% and 0.09% of total gross loans and total assets, respectively. During the
three months ended December 31, 2009 and 2008, the Bank did not charge off any
loans. At December 31, 2009, non-performing loans consisted of nine loans
secured by one- to four-family residential real estate, two loans secured by
commercial real estate, and one loan secured by a multi-family dwelling, while
at December 31, 2008, non-performing loans consisted of six one- to four-family
residential real estate loans. At March 31, 2009, non-performing loans consisted
of seven one- to four-family residential real estate loans. All non-performing
loans included above are located in the state of New Jersey. Impaired loans
totaled $1.7 million and $432,000 at December 31, 2009 and March 31, 2009,
respectively. There were no specific reserves required on the impaired loans for
both period-ends. The allowance for loan losses amounted to $2.1 million,
representing 0.42% of total gross loans at December 31, 2009, $1.7 million,
representing 0.36% of total gross loans at March 31, 2009 and $1.6 million,
representing 0.33% of total gross loan at December 31, 2008.

Non-interest income increased $1,000, or 0.35% to $289,000 during the three
months ended December 31, 2009 as compared to $288,000 for the same 2008 period.

Non-interest expense increased by $271,000, or 9.4% to $3.17 million during the
three months ended December 31, 2009, when compared with $2.90 million during
the same 2008 period. The components of non-interest expense which experienced
the most significant change were federal deposit insurance premiums, occupancy
expense and other miscellaneous expenses which increased $143,000, or 621.7%,
$47,000, or 16.9%, and $72,000, or 18.8%, respectively. The increase in federal
deposit insurance premiums in 2009 was due to an increase in the quarterly
assessment rates for all financial institutions.


                                      -18-
<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 DECEMBER 31, 2009 AND
2008 (CONT'D.)

The increase in occupancy expense was primarily due to costs related to a new
branch location opened in November 2009. The increase in other miscellaneous
expenses was primarily due to increases of $30,000 in consulting fees, $14,000
in correspondent bank service fees, and $10,000 in stationary, printing and
supplies.

Income taxes totaled $1.01 million and $724,000 during the three months ended
December 31, 2009 and 2008, respectively. The increase of $288,000, or 39.8%
during the 2009 period resulted from higher pre-tax income, coupled with an
increase in the overall effective income tax rate which was 33.8% in the 2009
period, compared with 31.9% for 2008. The Company's effective tax rate increases
when overall income increases and tax exempt income recognized from the increase
in the cash surrender value of bank owned life insurance accounts for a smaller
percentage of overall income.

COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2009
AND 2008

Net income increased $106,000, or 2.6% to $4.15 million for the nine months
ended December 31, 2009 compared with $4.04 million for the same 2008 period.
The increase in net income during the 2009 period primarily was the result of an
increase of net interest income of $1.9 million mostly due to a decrease in
interest expense of $1.7 million, partially offset by an increase in provision
for loan loss of $318,000 and an increase in non interest expense of $1.5
million.

Interest income on loans increased by $563,000, or 3.2% to $18.42 million during
the nine months ended December 31, 2009, when compared with $17.86 million for
the same 2008 period. The increase during the 2009 period resulted from an
increase in the average loan balance of $28.2 million, or 6.3% when compared to
the same period in 2008, partially offset by a decrease in the yield earned on
the loan portfolio of 15 basis points to 5.14% from 5.29%. Interest income on
mortgage-backed securities increased $714,000, or 6.0% to $12.70 million during
the nine months ended December 31, 2009, when compared with $11.98 million for
the same 2008 period. The increase during the 2009 period resulted from an
increase of $29.9 million, or 9.8% in the average balance of mortgage-backed
securities outstanding, partially offset by a decrease of 18 basis points in the
average yield earned on mortgage-backed securities to 5.05% from 5.23%. Interest
earned on investment securities decreased by $799,000, or 28.0% to $2.05 million
during the nine months ended December 31, 2009, when compared to $2.85 million
during the same 2008 period, due to a decrease of 202 basis points in average
yield to 2.73% from 4.75%, partially offset by an increase of $20.1 million, or
25.1%, in the average balance. Interest earned on other interest-earning assets
decreased by $266,000, or 43.4% to $347,000 during the nine months ended
December 31, 2009, when compared to $613,000 during the same 2008 period
primarily due to a decrease of 66 basis points in average yield to 1.86% from
2.52%, coupled with a decrease of $7.6 million, or 23.5%, in the average balance
of other interest-earning assets.

Interest expense on deposits decreased $1.33 million, or 8.8% to $13.78 million
during the nine months ended December 31, 2009, when compared to $15.11 million
during the same 2008 period. Such decrease was primarily attributable to a
decrease of 78 basis points in the average cost of interest-bearing deposits to
2.70% from 3.48%, partially offset by an increase of $100.9 million, or 17.4% in
the average balance of interest-bearing deposits. The decrease in the average
cost of deposits reflected lower market

                                      -19-
<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 NINE MONTHS ENDED DECEMBER 31, 2009 AND
2008 (CONT'D.)

interest rates. Interest expense on borrowed money decreased approximately
$396,000, or 8.9% to $4.06 million during the nine months ended December 31,
2009 when compared with $4.45 million during the same 2008 period. Such decrease
was primarily attributable to a decrease of $10.1 million, or 6.7% in the
average balance of borrowings, coupled with a decrease of 9 basis points in the
average cost of borrowings to 3.84% from 3.93%.

Net interest income increased $1.94 million, or 14.1% during the nine months
ended December 31, 2009, to $15.68 million when compared to $13.74 million for
the same 2008 period. Such increase was due to a $212,000 increase in total
interest income, coupled with a decrease in total interest expense of $1.7
million. Average interest-earning assets increased $70.6 million, or 8.1% while
average interest-bearing liabilities increased $90.8 million, or 12.4%. The
$70.6 million increase in average interest-earning assets was attributable to an
increase of $28.2 million in average loans, $29.9 million in average
mortgage-backed securities and $20.1 million in average investment securities,
partially offset by a decrease of $7.6 million in average other interest-earning
assets. Average loans, mortgage-backed and investment securities increased
primarily due to the deployment of funds resulting from the growth in deposits
into higher yielding assets. The $90.8 million increase in average
interest-bearing liabilities consisted of an increase of $100.9 million in
average interest-bearing deposits partially offset by a decrease of $10.1
million in average borrowings. The net interest rate spread increased 31 basis
points to 1.86% as a 36 basis point decrease to 4.76% in the average yield
earned on interest-earning assets was more than offset by a decrease of 67 basis
points to 2.90% in the average rate paid on average interest-bearing
liabilities.

During the nine months ended December 31, 2009 and 2008, the Bank recorded
$433,000 and $115,000, respectively, as a provision for loan losses. The
increased provision in the current period was the result of increases in
non-performing loans due to worsening economic conditions and, to a lesser
extent, the increase in the loan portfolio. See "Comparison of Operating Results
for the Three Months Ended December 31, 2009 and 2008" for a discussion of
non-performing loans at December 31, 2009. During the nine months ended December
31, 2009 and 2008, the Bank charged off $83,000 and $0, respectively. During the
period ended December 31, 2009, the $83,000 charge-off represented a partial
loss from the restructuring of one residential real estate loan. This was the
first loan charge-off recorded by the Bank in more than ten years.

Non-interest income increased $8,000, or 0.9% to $871,000 during the nine months
ended December 31, 2009 as compared to $863,000 for the same 2008 period.

Non-interest expense increased by $1.46 million, or 17.0% to $10.03 million
during the nine months ended December 31, 2009, when compared with $8.57 million
during the same 2008 period. The components of non-interest expense which
experienced the most significant change were legal expense, federal deposit
insurance premiums, including a special assessment, and other miscellaneous
expenses,

                                      -20-
<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


COMPARISON OF OPERATING RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2009 AND
2008 (CONT'D.)

which increased by $106,000, or 200.0%, $923,000, or 1,465.1%, and $262,000, or
25.3%, respectively. Legal expense was higher during the nine months ended
December 31, 2009 mainly due to a $92,000 insurance recovery of previously
expensed legal fees relating to litigation reimbursement in the 2008 period. The
increase in federal deposit insurance premiums in 2009 was due to an increase in
the quarterly assessment rates for all financial institutions along with a
special emergency assessment imposed on order to cover losses of the Deposit
Insurance Fund that were incurred from failed institutions, as well as
anticipated future losses. The Federal Deposit Insurance Corporation special
assessment accrued at June 30, 2009 and paid in September 2009 was $422,000. The
special assessment was based on the Bank's June 30, 2009 total assets minus Tier
1 capital multiplied by five basis points. The increase in other miscellaneous
expenses was mainly due to a $49,000 recovery of previously expensed consulting
fees relating to litigation reimbursement in the 2008 period, along with
increases of $119,000 in consulting fees due to costs associated with
information systems testing, an insurance coverage adequacy review, financial
advisory fees, and branch feasibility studies, as well as increases of $35,000
in stationary, printing and supplies and $60,000 in correspondent bank service
fees.

Income taxes totaled $1.94 million and $1.88 million during the nine months
ended December 31, 2009 and 2008, respectively. The increase of $62,000, or 3.3%
during the 2009 period resulted from higher pre-tax income, coupled with an
increase in the overall effective income tax rate which was 31.9% in the 2009
period, compared with 31.8% for 2008. The Company's effective tax rate increases
when overall income increases and tax exempt income recognized from the increase
in the cash surrender value of bank owned life insurance accounts for a smaller
percentage of overall income.

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 $103.5
million, or 9.8% of total assets at December 31, 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.

Cash was generated by operating and financing activities during the three months
ended December 31, 2009. The primary sources of cash were net income and a net
increase in deposits. The Company declared and paid a cash dividend during the
three months ended December 31, 2009, totaling $453,000. Dividends declared and
paid totaled $1.37 million during the nine months ended December 31, 2009.

                                      -21-
<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)

The Company's primary investing activities are lending and the purchases of
securities. Net loans amounted to $483.6 million and $468.5 million at December
31, 2009 and March 31, 2009, respectively. Securities, including available for
sale and held to maturity issues, totaled $500.7 million and $394.4 million at
December 31, 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 $94.9 million under an overnight line of credit, and $94.9 million
under a one-month adjustable-rate 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 December 31,
2009, advances from the FHLB amounted to $133.6 million at a weighted average
rate of 3.81%. 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 funds available to meet its
current commitments. At December 31, 2009, the Bank had outstanding commitments
to originate loans totaling approximately $6.2 million, which included $5.6
million for fixed-rate mortgage loans with interest rates ranging from 4.375% to
5.125%, a $425,000 adjustable rate mortgage loan with an initial rate of 4.875%,
and a $200,000 fixed-rate second mortgage loan with an interest rate 6.25%.

At December 31, 2009, the Bank had outstanding commitments to purchase a
$500,000 participation in a $3.0 million construction loan, a $500,000
participation in a $6.5 million construction loan, and a $560,000 participation
in a $5.6 million construction loan with adjustable interest rates of 2.75%,
2.50%, and 2.50%, respectively, over the one month London Interbank Offering
Rate with floors of 6.00%, 6.25%, and 6.25%, respectively. Also, 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 with a floor of 5.25%.

At December 31, 2009, undisbursed funds from customer approved unused lines of
credit under a homeowners' equity lending program amounted to approximately $3.1
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 December 31,
2009, totaled $354.5 million, or 60.8% 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 December 31, 2009, totaled
$25.5 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 to at 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.

                                      -22-


<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)

The following table sets forth the Bank's capital position at December 31, 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)            $155,339      41.01 %        $30,302         8.00 %      $37,878        10.00 %
Tier 1 capital
   (to risk-weighted assets)             153,279      40.47           15,151         4.00         22,727         6.00
Core (tier 1) capital
   (to adjusted total assets)            153,279      14.48           42,350         4.00         52,937         5.00
Tangible capital
   (to adjusted tangible assets)         153,279      14.48           15,881         1.50              -            -

</TABLE>


                                                    -23-


<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.




                                      -24-

<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 September
30, 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
December 31, 2009 may decline from those listed below. However, any such
declines are currently expected to be immaterial. This data is for the Bank and
its subsidiary only and does not include any assets of the Company.
<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               $ 109,045      $ (66,635)        (38)%           11.35 %              (539)bp
                         ---------------  ------------- ---------------  ----------------  -------------------
         200                    135,245        (40,435)        (23)            13.60                (313)
                         ---------------  ------------- ---------------  ----------------  -------------------
         100                    159,188        (16,492)         (9)            15.52                (121)
                         ---------------  ------------- ---------------  ----------------  -------------------
          50                    168,409         (7,271)         (4)            16.21                 (52)
                         ---------------  ------------- ---------------  ----------------  -------------------
          0                     175,680              -           -             16.73                   -
                         ---------------  ------------- ---------------  ----------------  -------------------
         (50)                   179,971          4,291           2             17.01                  27
                         ---------------  ------------- ---------------  ----------------  -------------------
        (100)                   182,180          6,500           4             17.12                  39
                         ---------------  ------------- ---------------  ----------------  -------------------
</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.

                                      -25-

<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 December 31, 2009
       that have materially affected, or are reasonably likely to materially
       affect, the Company's internal control over financial reporting.


                                      -26-


<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 December 31, 2009, the risk factors
         of the Company have not changed materially from those disclosed 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 December 31,
         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>
October 1 - October 31, 2009                 57,886           $  10.00             57,886              218,773
November 1 - November 30, 2009               63,335               8.93             63,335              155,438
December 1 - December 31, 2009 (2)           49,209               9.41             30,372              125,066
                                         -----------                          ------------
                TOTAL                       170,430           $   9.43            151,593
                                         ===========                          ============
</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 withholding of 18,837 shares at $9.33 per share subject to
      restricted stock awards under the Clifton Savings Bancorp, Inc. 2005
      Equity Incentive Plan as payment of taxes due upon the vesting of the
      restricted stock awards.

                                      -27-

<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.


                                      -28-

<PAGE>
<TABLE>
<CAPTION>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     PART II

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

         The following Exhibits are filed as part of this report.
                  <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>


                                      -29-
<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: February 9, 2010           By: /s/ John A. Celentano, Jr.
                                      ------------------------------------------
                                      John A. Celentano, Jr.
                                      Chairman of the Board and Chief Executive
                                      Officer
                                      (Principal Executive Officer)


Date: February 9, 2010           By: /s/ Christine R. Piano
                                     -------------------------------------------
                                     Christine R. Piano
                                     Chief Financial Officer and Treasurer
                                     (Principal Financial and Chief Accounting
                                     Officer)



                                      -30-