UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q

(Mark One)

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

For the quarterly period ended                       September 30, 2006

                                       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. 0-50529

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

Federal                                                          56-2423720
--------------------------------------------------------------------------------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification Number)

                  3723 Glenmore Avenue, Cincinnati, Ohio 45211
--------------------------------------------------------------------------------
                     (Address of principal executive office)

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

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

Yes [X]           No  [  ]

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

Large accelerated filer [ ]   Accelerated filer [ ]  Non-accelerated filer  [X]

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

Yes [  ]         No  [X]


As of November 7, 2006, the latest  practicable  date,  9,416,204  shares of the
registrant's common stock, $.01 par value, were issued and outstanding.

                                  Page 1 of 21

<PAGE>

                                INDEX

                                                                            Page

PART I  -        FINANCIAL INFORMATION

                 Consolidated Statements of Financial Condition               3

                 Consolidated Statements of Earnings                          4

                 Consolidated Statements of Comprehensive Income              5

                 Consolidated Statements of Cash Flows                        6

                 Notes to Consolidated Financial Statements                   8

                 Management's Discussion and Analysis of
                 Financial Condition and Results of
                 Operations                                                  14

                 Quantitative and Qualitative Disclosures about
                 Market Risk                                                 19

                 Controls and Procedures                                     19

PART II  -       OTHER INFORMATION                                           20

SIGNATURES                                                                   21

                                       2

<PAGE>
                             Cheviot Financial Corp.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                        (In thousands, except share data)
<TABLE>
<CAPTION>

                                                                                      September 30,        December 31,
         ASSETS                                                                                2006                2005
                                                                                        (Unaudited)

<S>                                                                                      <C>                 <C>
Cash and due from banks                                                                  $    1,270          $    2,425
Federal funds sold                                                                            1,710               1,715
Interest-earning deposits in other financial institutions                                     2,588               4,963
                                                                                         ----------          ----------
         Cash and cash equivalents                                                            5,568               9,103

Investment securities available for sale - at fair value                                     11,101                  -
Investment securities held to maturity - at cost, approximate
  market value of $26,660 and $26,509 at September 30, 2006
  and December 31, 2005, respectively                                                        27,096              27,084
Mortgage-backed securities available for sale - at fair value                                 1,091               1,269
Mortgage-backed securities held to maturity - at cost, approximate
  market value of $15,760 and $20,193 at September 30, 2006 and
  December 31, 2005, respectively                                                            15,777              20,285
Loans receivable - net                                                                      238,462             222,053
Loans held for sale - at lower of cost or market                                                207                 658
Real estate acquired through foreclosure - net                                                   -                   89
Office premises and equipment - at depreciated cost                                           4,675               3,628
Federal Home Loan Bank stock - at cost                                                        3,190               3,057
Accrued interest receivable on loans                                                          1,001                 873
Accrued interest receivable on mortgage-backed securities                                        60                  72
Accrued interest receivable on investments and interest-earning deposits                        495                 298
Prepaid expenses and other assets                                                               316                 145
Bank-owned life insurance                                                                     3,221               3,121
Prepaid federal income taxes                                                                     -                   56
                                                                                         ----------          ----------
         Total assets                                                                      $312,260            $291,791

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                   $208,946            $181,238
Advances from the Federal Home Loan Bank                                                     28,408              33,209
Advances by borrowers for taxes and insurance                                                   760               1,063
Accounts payable and other liabilities                                                        1,046               1,090
Accrued federal income taxes                                                                     47                  -
Deferred federal income taxes                                                                   516                 381
                                                                                         ----------          ----------
         Total liabilities                                                                  239,723             216,981

Shareholders' equity
  Preferred stock - authorized 5,000,000 shares, $.01 par value; none issued
  Common stock - authorized 30,000,000 shares, $.01 par value;
    9,918,751 shares issued at September 30, 2006 and December 31, 2005                          99                  99
  Additional paid-in capital                                                                 43,039              42,824
  Shares acquired by stock benefit plans                                                     (4,686)             (5,092)
  Treasury stock - at cost, 495,937 and 216,208 shares at September 30, 2006
    and December 31, 2005, respectively                                                      (5,893)             (2,537)
  Retained earnings - restricted                                                             39,974              39,524
  Accumulated comprehensive gain (loss), unrealized gains (losses) on securities
    available for sale, net of related tax effects                                                4                  (8)
                                                                                         ----------          ----------
         Total shareholders' equity                                                          72,537              74,810
                                                                                         ----------          ----------
         Total liabilities and shareholders' equity                                        $312,260            $291,791
                                                                                         ==========          ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                        3
<PAGE>

                            Cheviot Financial Corp.

                       CONSOLIDATED STATEMENTS OF EARNINGS

                                   (Unaudited)
                      (In thousands, except per share data)
<TABLE>
<CAPTION>

                                                                          Nine months ended            Three months ended
                                                                            September 30,                 September 30,
                                                                         2006         2005              2006         2005

Interest income
<S>                                                                   <C>         <C>                 <C>          <C>
  Loans                                                               $10,360      $ 9,057           $ 3,584      $ 3,139
  Mortgage-backed securities                                              628          672               204          233
  Investment securities                                                   938          710               380          253
  Interest-earning deposits and other                                     225          166               115           57
                                                                      -------      -------           -------       -------
         Total interest income                                         12,151       10,605             4,283        3,682

Interest expense
  Deposits                                                              4,422        2,862             1,782        1,047
  Borrowings                                                            1,138          739               349          304
                                                                      -------      -------           -------       -------
         Total interest expense                                         5,560        3,601             2,131        1,351
                                                                      -------      -------           -------       -------
         Net interest income                                            6,591        7,004             2,152        2,331
Provision for losses on loans                                              -            62                -            30
                                                                      -------      -------           -------       -------
         Net interest income after provision for losses on loans        6,591        6,942             2,152        2,301

Other income (expense)
Gain on sale of loans                                                      23           13                10            9
Gain on sale of office premises and equipment                              44           -                 44           -
Loss on sale of real estate acquired through foreclosure                  (21)          (8)               -            (2)
Earnings on bank-owned life insurance                                     100           74                32           25
Other operating                                                           253          225                90           80
                                                                      -------      -------           -------       -------
         Total other income                                               399          304               176          112

General, administrative and other expense
  Employee compensation and benefits                                    3,105        2,683             1,063          921
  Occupancy and equipment                                                 321          310               114           84
  Property, payroll and other taxes                                       581          709               165          231
  Data processing                                                         209          201                71           85
  Legal and professional                                                  309          383                99           77
  Advertising                                                             131          131                44           44
  Other operating                                                         416          402               134          132
                                                                      -------      -------           -------       -------
         Total general, administrative and other expense                5,072        4,819             1,690        1,574
                                                                      -------      -------           -------       -------
         Earnings before income taxes                                   1,918        2,427               638          839

Federal income taxes
  Current                                                                 485          744               189          274
  Deferred                                                                129           60                12            5
                                                                      -------      -------           -------       -------
         Total federal income taxes                                       614          804               201          279
                                                                      -------      -------           -------       -------
         NET EARNINGS                                                 $ 1,304      $ 1,623           $   437       $  560
                                                                      =======      =======           =======       ======
         EARNINGS PER SHARE
           Basic                                                         $.14         $.17              $.05         $.06
                                                                      =======      =======           =======       ======
           Diluted                                                       $.14         $.17              $.05         $.06
                                                                      =======      =======           =======       ======
           Dividends declared per share                                  $.21         $.18              $.07         $.06
                                                                      =======      =======           =======       ======
</TABLE>
See accompanying notes to consolidated financial statements.

                                        4
<PAGE>

                             Cheviot Financial Corp.

           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

         For the nine and three months ended September 30, 2006 and 2005
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                       For the nine months          For the three months
                                                                       ended September 30,           ended September 30,
                                                                       2006         2005              2006         2005

<S>                                                                  <C>          <C>                 <C>            <C>
Net earnings for the period                                          $1,304       $1,623            $ 437           $ 560

Other comprehensive income, net of tax:
  Unrealized holding gains on securities during the
    period, net of taxes of $6 and $5 for the nine
    months ended September 30, 2006 and 2005, respectively,
    and $11 and $3 for the three months ended September 30,
    2006 and 2005, respectively                                          12            8                17              4

Comprehensive income                                                 $1,316       $1,631             $ 454          $ 564
                                                                     ======       ======            ======          =====
Accumulated comprehensive income                                     $    4       $    2             $   4          $   2

</TABLE>

                                       5

<PAGE>
                             Cheviot Financial Corp.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                     For the nine months ended September 30,
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>

                                                                                               2006                2005
Cash flows from operating activities:
<S>                                                                                        <C>                 <C>
  Net earnings for the period                                                              $  1,304            $  1,623
  Adjustments to reconcile net earnings to net cash
  provided by operating activities:
    Amortization of premiums and discounts on investment
      and mortgage-backed securities, net                                                        (9)                 27
    Depreciation                                                                                191                 163
    Amortization of deferred loan origination fees - net                                        (21)                (35)
    Proceeds from sale of loans in the secondary market                                       2,008               1,595
    Loans originated for sale in the secondary market                                        (1,985)             (1,591)
    Gain on sale of loans                                                                       (23)                (13)
    Loss on sale of real estate acquired through foreclosure                                     21                   8
    Gain on sale of office premises and equipment                                               (44)                 -
    Federal Home Loan Bank stock dividends                                                     (133)               (104)
    Provision for losses on loans                                                                -                   62
    Amortization of expense related to stock benefit plans                                       36                 100
      Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                     (128)               (109)
      Accrued interest receivable on mortgage-backed securities                                  12                   7
      Accrued interest receivable on investments and interest-earning deposits                 (197)                (42)
      Prepaid expenses and other assets                                                        (171)               (114)
      Accounts payable and other liabilities                                                    362                 183
      Federal income taxes
        Current                                                                                 103                (242)
        Deferred                                                                                129                  60
                                                                                            -------             -------
         Net cash provided by operating activities                                            1,455               1,578

Cash flows used in investing activities:
  Principal repayments on loans                                                              29,463              32,037
  Loan disbursements                                                                        (45,400)            (46,573)
  Purchase of U.S. Government and agency obligations                                         (8,998)             (1,977)
  Proceeds from maturity of U.S. Government and agency obligations                               -                2,000
  Purchase of municipal obligations                                                          (2,080)                 -
  Principal repayments on mortgage-backed securities                                          4,678               6,924
  Proceeds from sale of real estate acquired through foreclosure                                 68                 110
  Proceeds from sale of office premises and equipment                                            85                  -
  Purchase of office premises and equipment                                                  (1,279)               (680)
  Purchase of bank-owned life insurance                                                          -               (3,000)
  Net increase in the cash surrender value of life insurance                                   (100)                (74)
                                                                                            -------             -------
         Net cash used in investing activities                                              (23,563)            (11,233)

Cash flows provided by financing activities:
  Net increase in deposits                                                                   27,708               1,037
  Proceeds from Federal Home Loan Bank advances                                               3,500              16,600
  Repayments of Federal Home Loan Bank advances                                              (8,301)             (2,798)
  Advances by borrowers for taxes and insurance                                                (303)               (288)
  Purchase of shares for stock benefit plans                                                     -               (1,641)
  Treasury stock repurchases                                                                 (3,356)                 -
  Stock option expense, net                                                                     179                  -
  Dividends paid on common stock                                                               (854)               (804)
                                                                                            -------             -------
         Net cash provided by financing activities                                           18,573              12,106
                                                                                            -------             -------
Net (decrease) increase in cash and cash equivalents                                         (3,535)              2,451

Cash and cash equivalents at beginning of period                                              9,103               7,725
                                                                                            -------             -------
Cash and cash equivalents at end of period                                                  $ 5,568             $10,176
                                                                                            =======             =======
</TABLE>

                                       6
<PAGE>

                             Cheviot Financial Corp.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                     For the nine months ended September 30,
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                               2006                2005

Supplemental disclosure of cash flow information: Cash paid during the period
  for:
<S>                                                                                         <C>                  <C>
    Federal income taxes                                                                    $   512              $1,007
                                                                                            =======             =======
    Interest on deposits and borrowings                                                     $ 5,560              $3,601
                                                                                            =======             =======

Supplemental disclosure of noncash investing activities:
  Transfers from loans to real estate acquired through foreclosure                          $    -               $  112
                                                                                            =======             =======

Recognition of mortgage servicing rights in accordance with SFAS No. 140                    $    16              $    9
                                                                                            =======             =======
</TABLE>
See accompanying notes to consolidated financial statements.

                                        7

<PAGE>
                             Cheviot Financial Corp.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the three and nine months ended September 30, 2006 and 2005

1. Basis of Presentation
------------------------

In  January  2004,   Cheviot  Financial  Corp.   ("Cheviot   Financial"  or  the
"Corporation")   completed  a  Plan  of   Reorganization   (the  "Plan"  or  the
"Reorganization")  pursuant to which Cheviot  Savings Bank (the "Savings  Bank")
reorganized   into  a  two-tier  mutual  holding  company   structure  with  the
establishment  of Cheviot  Financial,  as parent of the Savings  Bank,  with the
Savings Bank converting to stock form and issuing all of its  outstanding  stock
to  Cheviot  Financial.  Pursuant  to the Plan,  Cheviot  Financial  Corp.  sold
4,388,438 common shares in a minority stock offering, representing approximately
44% of its  outstanding  common stock at $10.00 per share to the Savings  Bank's
depositors and a newly formed  Employee Stock  Ownership Plan ("ESOP").  The net
proceeds of the  offering  totaled  approximately  $39.3  million.  In addition,
75,000 shares,  or  approximately  one percent of its outstanding  shares,  were
issued to a charitable  foundation  established  by Cheviot  Savings  Bank.  The
remaining  5,455,313 shares of common stock of Cheviot  Financial were issued to
Cheviot Mutual Holding Company,  the federally  chartered mutual holding company
parent of Cheviot Financial Corp.

The accompanying unaudited financial statements were prepared in accordance with
instructions  for Form  10-Q  and,  therefore,  do not  include  information  or
footnotes necessary for a complete  presentation of financial position,  results
of operations and cash flows in conformity with accounting  principles generally
accepted  in the  United  States of  America.  Accordingly,  these  consolidated
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial  statements  and notes  thereto of Cheviot  Financial  included in the
Annual Report on Form 10-K for the year ended December 31, 2005. However, in the
opinion of management,  all  adjustments  (consisting  of only normal  recurring
accruals)  which  are  necessary  for a fair  presentation  of the  consolidated
financial statements have been included. The results of operations for the three
and nine month periods ended September 30, 2006, are not necessarily  indicative
of the results which may be expected for the entire year.

2. Principles of Consolidation
------------------------------

The accompanying  consolidated  financial statements as of and for the three and
nine months ended  September 30, 2006,  include the accounts of the  Corporation
and its wholly-owned subsidiary,  the Savings Bank. All significant intercompany
items have been eliminated.

3. Liquidity and Capital Resources
----------------------------------

Liquidity describes our ability to meet the financial  obligations that arise in
the  ordinary  course of business.  Liquidity  is  primarily  needed to meet the
borrowing  and deposit  withdrawal  requirements  of our  customers  and to fund
current and planned  expenditures.  Our primary  sources of funds are  deposits,
scheduled  amortization  and  prepayments of loan principal and  mortgage-backed
securities,  maturities  and  calls of  securities  and  funds  provided  by our
operations.  In  addition,  we may  borrow  from the  Federal  Home Loan Bank of
Cincinnati.  At September  30, 2006 and December 31, 2005,  we had $28.4 million
and $33.2 million, respectively, in outstanding borrowings from the Federal Home
Loan Bank of  Cincinnati  and had the capacity to increase  such  borrowings  at
those dates by approximately $108.8 million.

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

                                       8
<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2006 and 2005


3. Liquidity and Capital Resources (continued)
---------------------------------------------

Our primary investing activities are the origination of one- to four-family real
estate loans, commercial real estate, construction and consumer loans, and, to a
lesser extent,  the purchase of securities.  For the nine months ended September
30, 2006, loan originations totaled $47.4 million, compared to $48.2 million for
the nine months ended September 30, 2005.

Total deposits  increased  $27.7 million and $1.0 million during the nine months
ended  September  30, 2006 and 2005.  Deposit flows are affected by the level of
interest rates, the interest rates and products offered by competitors and other
factors.

The  following  table  sets  forth   information   regarding  the  Corporation's
obligations  and  commitments  to make  future  payments  under  contract  as of
September 30, 2006.
<TABLE>
<CAPTION>
                                                                        Payments due by period
                                                              Less     More than     More than       More
                                                              than        1-3           4-5          than
                                                             1 year      years         years        5 years       Total
                                                                                 (In thousands)

    Contractual obligations:
<S>                                                      <C>            <C>               <C>      <C>          <C>
      Advances from the Federal Home Loan Bank           $      -       $     -       $    -       $28,408     $ 28,408
      Certificates of deposit                              119,392        25,270          399           -       145,061
      Construction of branch (1)                               557            -            -            -           557

    Amount of loan commitments and expiration per period:
      Commitments to originate one- to four-family
        loans                                                4,746            -            -            -         4,746
      Home equity lines of credit                           10,850            -            -            -        10,850
      Undisbursed loans in process                           7,263            -            -            -         7,263
      Lease obligations                                          3            -            -            -             3
                                                          --------      --------      --------    --------     ---------
         Total contractual obligations                    $142,811       $25,270      $   399      $28,408     $196,888

</TABLE>
---------------------------
(1)  The total  commitment  related to the branch was $889,000 of which $332,000
     has  been  disbursed.  In  addition,  at  September  30,  2006,  we were in
     negotiations for the construction of an additional branch.

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

                                       9
<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2006 and 2005


3. Liquidity and Capital Resources (continued)
----------------------------------------------

At September  30, 2006 and 2005,  we exceeded all of the  applicable  regulatory
capital  requirements.  Our core (Tier 1) capital  was $50.5  million  and $60.2
million,  or 16.2% and 20.7% of total  assets at  September  30,  2006 and 2005,
respectively.  In order to be  classified  as  "well-capitalized"  under federal
banking  regulations,  we were  required to have core  capital of at least $18.7
million,  or 6% of  assets as of  September  30,  2006.  To be  classified  as a
well-capitalized  bank, we must also have a ratio of total risk-based capital to
risk-weighted assets of at least 10.0%. At September 30, 2006 and 2005, we had a
total risk-based capital ratio of 33.3% and 43.6%, respectively.

4. Earnings Per Share
---------------------

Basic  earnings  per share is computed  based upon the  weighted-average  common
shares  outstanding  during  the  period,  less  shares  in the  ESOP  that  are
unallocated  and not  committed to be released plus shares in the ESOP that have
been allocated.  Weighted-average  common shares deemed outstanding gives effect
to 285,661  and  321,368  unallocated  shares held by the ESOP for the three and
nine months ended September 30, 2006 and 2005, respectively.
<TABLE>
<CAPTION>

                                                          For the nine months ended            For the three months ended
                                                                September 30,                          September 30,
                                                            2006            2005                    2006           2005

<S>                                                   <C>             <C>                    <C>             <C>
         Weighted-average common shares
           outstanding (basic)                         9,262,744       9,596,867               9,164,950      9,597,383

         Dilutive effect of assumed exercise
           of stock options                               23,578          16,152                  26,584         12,001

         Weighted-average common shares
           outstanding (diluted)                       9,286,322       9,613,019               9,191,534      9,609,384
</TABLE>

A total of 6,060 shares with a weighted-average exercise price of $12.12 are not
included  in the  earnings  per  share  calculation  for both the three and nine
months ended September 30, 2006, as these shares are anti-dilutive.

5. Stock Option Plan
--------------------

On April 26, 2005, the Corporation approved a Stock Incentive Plan that provides
for grants of up to 486,018 stock options. On May 5, 2005, approximately 384,000
option  shares  were  granted  subject to five year  vesting.  On May 23,  2006,
approximately 6,100 option shares were granted subject to five year vesting.

Prior to  January 1, 2006,  the  Corporation  utilized  APB  Opinion  No. 25 and
related Interpretations in accounting for its stock option plan. Accordingly, no
compensation  cost had been  recognized  for the  plan.  For the nine and  three
months  ended  September  30,  2005,  net  earnings  would have been  reduced by
$71,000,  resulting in pro-forma net earnings of $1.6 million, or $.16 per share
for the nine months period and  $489,000,  or $.05 per share for the three month
period.

In 2004, the Financial  Accounting  Standards Board ("FASB") issued Statement of
Financial Accounting Standard ("SFAS") No. 123(R),  "Share-Based Payment," which
revises SFAS No. 123, "Accounting for Stock-Based  Compensation," and supersedes
Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued
to Employees."  SFAS No. 123(R)  requires that cost related to the fair value of
all  equity-based  awards  to  employees,  including  grants of  employee  stock
options, be recognized in the financial statements.
                                       10

<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2006 and 2005


5. Stock Option Plan (continued)
--------------------------------

The Corporation  adopted the provisions of SFAS No. 123(R) effective  January 1,
2006, using the modified  prospective  transition  method, and therefore has not
restated its financial  statements  for prior  periods.  Under this method,  the
Corporation  has applied the  provisions of SFAS No. 123(R) to new  equity-based
awards and to  equity-based  awards  modified,  repurchased,  or cancelled after
January 1, 2006. In addition,  the Corporation will recognize  compensation cost
for the portion of  equity-based  awards for which the requisite  service period
has not been rendered ("unvested  equity-based  awards") that are outstanding as
of January 1, 2006.  The  compensation  cost recorded for unvested  equity-based
awards  is based on their  grant-date  fair  value.  For the nine  months  ended
September 30, 2006, the Corporation recorded $129,000 in after-tax  compensation
cost for equity-based  awards that vested during the nine months ended September
30, 2006. The Corporation has $940,000  unrecognized  pre-tax  compensation cost
related to non-vested equity-based awards granted under its stock incentive plan
as  of  September  30,  2006,   which  is  expected  to  be  recognized  over  a
weighted-average vesting period of approximately 3.7 years.

A summary of the status of the  Corporation's  stock option plan as of September
30, 2006, and changes during the period then ended is presented below:
<TABLE>
<CAPTION>

                                                                    Nine months ended                   Year ended
                                                                   September 30, 2006                December 31, 2005
                                                                                Weighted-                       Weighted-
                                                                                 average                         average
                                                                                exercise                        exercise
                                                                  Shares          price           Shares          price

<S>                                                               <C>           <C>                             <C>
    Outstanding at beginning of period                            383,700       $11.15                  -       $    -
    Granted                                                         6,060        12.12            383,700        11.15
    Exercised                                                          -             -                  -            -
    Forfeited                                                          -             -                  -            -
                                                                  -------       ------            -------       ------
    Outstanding at end of period                                  389,760       $11.17            383,700       $11.15
                                                                  =======       ======            =======       ======
    Options exercisable at period-end                              76,740       $11.15                  -       $    -
                                                                  =======       ======            =======       ======
    Options expected to be exercisable at year-end                 76,740                               -
                                                                  =======                         =======
    Fair value of options granted                                               $ 2.97                          $ 3.36
                                                                                ======                          ======
</TABLE>


<TABLE>
<CAPTION>

    The following information applies to options outstanding at September 30,
2006:

<S>                                                                                                               <C>
    Number outstanding                                                                                            389,760
    Exercise price$11.15 - $12.12
    Weighted-average exercise price                                                                                $11.17
    Weighted-average remaining contractual life                                                                 8.7 years
    Aggregate intrinsic value of vested options                                                                  $103,599
</TABLE>

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

                                       11

<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2006 and 2005


5. Stock Option Plan (continued)
-------------------------------

The fair  value of each  option  was  estimated  on the date of grant  using the
modified Black-Scholes options pricing model with the following weighted-average
assumptions used for grants in 2005 and 2006: dividend yield of 2.15% and 2.31%,
expected  volatility  of 22.5% and 14.4%,  risk-free  interest rate of 4.19% and
5.07% and an expected life of 10 years for each grant.

The  effects  of  expensing  stock  options is  reported  in "cash  provided  by
financing activities" in the Consolidated Statements of Cash Flows.

6. Effects of Recent Accounting Pronouncements
----------------------------------------------

In February 2006, the FASB issued SFAS No. 155,  "Accounting  for Certain Hybrid
Instruments - an amendment of FASB  Statements No. 133 and 140," to simplify and
make  more  consistent  the  accounting  for  certain   financial   instruments.
Specifically,  SFAS No. 155 amends  SFAS No.  133,  "Accounting  for  Derivative
Instruments and Hedging  Activities," to permit fair value remeasurement for any
hybrid  financial  instrument  with an embedded  derivative that otherwise would
require  bifurcation,  provided that the whole  instrument is accounted for on a
fair value basis.  SFAS No. 155 amends SFAS No. 140,  "Accounting  for Transfers
and Servicing of Financial Assets and Extinguishment of Liabilities," to allow a
qualifying special purpose entity to hold a derivative  instrument that pertains
to a beneficial interest other than another derivative financial instrument.

SFAS No. 155 is effective for all financial instruments acquired or issued after
the beginning of an entity's  first fiscal year that begins after  September 15,
2006,  or  January  1,  2007 as to the  Corporation,  with  earlier  application
allowed.  The  Corporation  is currently  evaluating  SFAS No. 155, but does not
expect it to have a material effect on the Corporation's  financial  position or
results of operations.

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial Assets - an amendment of SFAS No. 140," to simplify the accounting for
separately recognized servicing assets and servicing liabilities.  Specifically,
SFAS No.  156 amends  SFAS No.  140 to  require an entity to take the  following
steps:

     o    Separately recognize financial assets as servicing assets or servicing
          liabilities,  each  time it  undertakes  an  obligation  to  service a
          financial asset by entering into certain kinds of servicing contracts;

     o    Initially  measure  all  separately  recognized  servicing  assets and
          liabilities at fair value, if practicable, and;

     o    Separately  present  servicing  assets  and  liabilities  subsequently
          measured at fair value in the  statement  of  financial  position  and
          additional  disclosures for all separately recognized servicing assets
          and servicing liabilities.

Additionally,  SFAS No. 156 permits,  but does not require,  an entity to choose
either  the  amortization  method  or the  fair  value  measurement  method  for
measuring  each class of separately  recognized  servicing  assets and servicing
liabilities. SFAS No. 156 also permits a servicer that uses derivative financial
instruments  to offset  risks on servicing  to use fair value  measurement  when
reporting both the derivative  financial  instrument and related servicing asset
or liability.
                                       12

<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2006 and 2005


6. Effects of Recent Accounting Pronouncements (continued)
---------------------------------------------------------

SFAS  No.  156  applies  to  all  separately  recognized  servicing  assets  and
liabilities  acquired or issued after the  beginning of an entity's  fiscal year
that begins after September 15, 2006, or January 1, 2007 as to the  Corporation,
with earlier application permitted. The Corporation is currently evaluating SFAS
No. 156, but does not expect it to have a material  effect on the  Corporation's
financial position or results of operations.

In September 2006, the SEC staff issued Staff  Accounting  Bulletin  ("SAB") No.
108,  "Considering  the  Effects of Prior Year  Misstatements  when  Quantifying
Misstatements  in  Current  Year  Financial  Statements."  SAB 108 was issued to
provide  consistency  between  how  registrants   quantify  financial  statement
misstatements.

Historically,  there  have been two  widely-used  methods  for  quantifying  the
effects of financial statement  misstatements.  These methods are referred to as
the "roll-over" and "iron curtain" method.  The roll-over method  quantifies the
amount by which the  current  year  income  statement  is  misstated.  Exclusive
reliance  on an income  statement  approach  can result in the  accumulation  of
errors on the balance  sheet that may not have been  material to any  individual
income statement, but which may misstate one or more balance sheet accounts. The
iron curtain method  quantifies the error as the cumulative  amount by which the
current year balance sheet is misstated.  Exclusive  reliance on a balance sheet
approach  can result in  disregarding  the effects of errors in the current year
income  statement  that  results  from the  correction  of an error  existing in
previously  issued financial  statements.  We currently use the roll-over method
for quantifying identified financial statement misstatements.

SAB 108  established  an approach  that  requires  quantification  of  financial
statement  misstatements based on the effects of the misstatement on each of the
company's financial statements and the related financial statement  disclosures.
This approach is commonly referred to as the "dual approach" because it requires
quantification of errors under both the roll-over and iron curtain methods.

SAB 108 allows  registrants to initially  apply the dual approach  either by (1)
retroactively  adjusting prior financial  statements as if the dual approach had
always  been  used,  or by (2)  recording  the  cumulative  effect of  initially
applying the dual approach as adjustments  to the carrying  values of assets and
liabilities as of April 1, 2006, with an offsetting  adjustment  recorded to the
opening balance of retained earnings. Use of this "cumulative effect" transition
method requires detailed  disclosure of the nature and amount of each individual
error being  corrected  through the  cumulative  adjustment  and how and when it
arose.

Management  is currently  evaluating  the  requirements  of SAB 108 but does not
expect it to have a material adverse effect on the Company's  financial position
or results of operations.

In July 2006, the FASB issued FASB Interpretation No. 48 ("FIN 48"), "Accounting
for  Uncertainty in Income Taxes." The  interpretation  clarifies the accounting
for uncertainty in income taxes recognized in a company's  financial  statements
in accordance with SFAS No. 109,  "Accounting  for Income Taxes."  Specifically,
FIN 48  prescribes a recognition  threshold and a measurement  attribute for the
financial  statement  recognition  and  measurement of a tax provision  taken or
expected  to be taken on a tax  return.  FIN 48 also  provides  guidance  on the
related derecognition,  classification,  interest and penalties,  accounting for
interim periods,  disclosure,  and transition of uncertain tax positions. FIN 48
is effective  for fiscal years  beginning  after  December 15, 2006, or April 1,
2007 as to the Company.  The Company is currently evaluating the requirements of
FIN 48 but does not expect it to have a material adverse effect on the Company's
financial position or results of operations.
                                       13

<PAGE>


                             Cheviot Financial Corp.

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


Forward Looking Statements
--------------------------

This  report  on Form 10-Q  contains  forward-looking  statements,  which can be
identified  by the use of such  words as  estimate,  project,  believe,  intend,
anticipate,  plan, seek, expect and similar expressions.  These  forward-looking
statements are subject to significant risks,  assumptions and uncertainties that
could   affect  the  actual   outcome  of  future   events.   Because  of  these
uncertainties,  our actual future  results may be materially  different from the
results indicated by these forward-looking statements.


Discussion of Financial  Condition Changes at December 31, 2005 and at September
30, 2006
--------------------------------------------------------------------------------

Total assets  increased  $20.5 million,  or 7.0%, to $312.3 million at September
30, 2006, from $291.8 million at December 31, 2005. The increase in total assets
reflects an increase in loans receivable,  investment securities, as well as the
book value of office  premises and equipment,  which were partially  offset by a
decrease in cash and cash equivalents and mortgage-backed securities.

Cash, federal funds sold and  interest-earning  deposits decreased $3.5 million,
or 38.8%,  to $5.6 million at September 30, 2006,  from $9.1 million at December
31, 2005.  The decrease in cash and cash  equivalents at September 30, 2006, was
due to a $1.2 million decrease in cash and cash due from banks and a decrease in
interest earning deposits of $2.4 million. Investment securities increased $11.1
million to $38.2  million at September 30, 2006 due primarily to the purchase of
U.S. Government and agency obligations and municipal obligations of $9.0 million
and $2.1  million,  respectively.  At  September  30,  2006,  $27.1  million  of
investment  securities were classified as held to maturity,  while $11.1 million
were classified as available for sale.

Mortgage-backed securities decreased $4.7 million, or 21.7%, to $16.9 million at
September  30, 2006,  from $21.6  million at December 31, 2005.  The decrease in
mortgage-backed  securities  was due  primarily  to  principal  prepayments  and
repayments  totaling  $4.7  million.  At September  30, 2006,  $15.8  million of
mortgage-backed  securities  were  classified  as held to  maturity,  while $1.1
million  were  classified  as  available  for sale.  Management  has  focused on
investing in shorter term instruments in an effort to enhance the  Corporation's
liquidity in the current inverted yield curve interest rate environment.

Loans  receivable,  including loans held for sale,  increased $16.0 million,  or
7.2%, to $238.7  million at September 30, 2006,  from $222.7 million at December
31, 2005.  The increase  reflects  loan  originations  totaling  $47.4  million,
partially offset by loan principal repayments of $29.5 million and sales of $2.0
million.

The allowance for loan losses  totaled  $808,000 at both  September 30, 2006 and
December 31, 2005,  respectively.  In determining  the adequacy of the allowance
for loan  losses at any  point in time,  management  and the board of  directors
apply a systematic process focusing on the risk of loss in the portfolio. First,
the loan portfolio is segregated by loan types to be evaluated  collectively and
loan types to be evaluated individually.  Delinquent multi-family and commercial
loans are evaluated  individually  for potential  impairments  in their carrying
value. Second, the allowance for loan losses entails utilizing our historic loss
experience by applying such loss percentage to the loan types to be collectively
evaluated in the  portfolio.  This segment of the loss  analysis  resulted in no
addition to the provision for loss for the quarter ended September 30, 2006. The
analysis of the allowance for loan losses requires an element of judgment and is
subject to the possibility  that the allowance may need to be increased,  with a
corresponding reduction in earnings. To the best of management's knowledge,  all
known and inherent losses that are probable and that can be reasonably estimated
have been recorded at September 30, 2006.

                                       14

<PAGE>


                             Cheviot Financial Corp.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Discussion  of Financial  Condition  Changes from December 31, 2005 to September
30, 2006 (continued)
-------------------------------------------------------------------------------

Non-performing  and impaired loans totaled $12,000 and $149,000 at September 30,
2006 and December 31, 2005, respectively.  At September 30, 2006, non-performing
and  impaired  loans  were  comprised  solely  of one  loan  secured  by one- to
four-family  residential real estate.  The allowance for loan losses represented
6733.3% and 542.3% of  non-performing  and impaired  loans at September 30, 2006
and December 31,  2005,  respectively.  Although  management  believes  that the
Corporation's  allowance  for  loan  losses  conforms  with  generally  accepted
accounting  principles based upon the available facts and  circumstances,  there
can be no assurance  that  additions to the  allowance  will not be necessary in
future periods, which would adversely affect our results of operations.

Deposits  increased $27.7 million,  or 15.3%, to $208.9 million at September 30,
2006,  from $181.2 million at December 31, 2005.  Advances from the Federal Home
Loan Bank of Cincinnati decreased by $4.8 million, or 14.5%, to $28.4 million at
September  30, 2006,  from $33.2  million at December 31, 2005.  Deposit  growth
allowed for the repayment of advances from the Federal Home Loan Bank.

Shareholders'  equity  decreased  $2.3  million,  or 3.0%,  to $72.5  million at
September  30,  2006,  from $74.8  million at December  31,  2005.  The decrease
primarily  resulted from the  repurchase of treasury  shares of $3.4 million and
dividends paid of $854,000,  which were partially offset by net earnings of $1.3
million,  vesting of $406,000 of stock benefit plan shares and  amortization  of
shares for stock benefit plans of $36,000.

Comparison of Operating  Results for the Nine-Month  Periods Ended September 30,
2006 and 2005
--------------------------------------------------------------------------------

General
-------

Net earnings for the nine months ended  September 30, 2006 totaled $1.3 million,
a $319,000 decrease from the $1.6 million net earnings reported in the September
2005  period.  The  decrease  in net  earnings  reflects a $253,000  increase in
general and administrative expense in 2006 and a decrease in net interest income
after  provision for loan losses of $351,000,  which was partially  offset by an
increase in other income of $95,000 and a decrease of $190,000 in federal income
taxes for the 2006 period.

Net Interest Income
-------------------

Total interest income increased $1.5 million, or 14.6%, to $12.2 million for the
nine-months  ended  September  30,  2006,  from the  comparable  period in 2005.
Interest  income on loans  increased  $1.3 million,  or 14.4%,  to $10.4 million
during the 2006 period from $9.1 million for the 2005 period.  This increase was
due primarily to a $22.3 million,  or 10.7%,  increase in the average balance of
loans outstanding,  and a 19 basis point increase in the weighted-average  yield
on loans to 5.98% for 2006 period from 5.79% for the nine months ended September
30, 2005.


                                       15
<PAGE>


                             Cheviot Financial Corp.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Nine-Month  Periods Ended September 30,
2006 and 2005 (continued)
--------------------------------------------------------------------------------

Net Interest Income (continued)
-------------------------------

Interest income on mortgage-backed  securities  decreased  $44,000,  or 6.5%, to
$628,000 for the nine months ended  September  30, 2006,  from  $672,000 for the
2005 period,  due primarily to a $8.1 million decrease in the average balance of
securities outstanding, which was partially offset by a 110 basis point increase
in the average yield period to period.  Interest income on investment securities
increased  $228,000,  or 32.1%,  to $938,000 for the nine months ended September
30, 2006,  compared to $710,000 for the same period in 2005,  due primarily to a
99 basis point increase in the average yield to 4.26% in the 2006 period,  and a
$397,000,  or 1.4%  increase in the  average  balance of  investment  securities
outstanding.  Interest  income  on  other  interest-earning  deposits  increased
$59,000,  or 35.5% to $225,000  for the nine months  ended  September  30, 2006,
compared to $166,000 for the same period in 2005,  due  primarily to a 208 basis
point  increase  in the  average  yield to 5.10% in the 2006  period,  which was
partially offset by a $1.4 million,  or 19.6% decrease in the average balance of
interest-earning deposits.

Interest expense increased $2.0 million,  or 54.4%, to $5.6 million for the nine
months ended  September 30, 2006, from $3.6 million for the same period in 2005.
Interest  expense on  deposits  increased  by $1.6  million,  or 54.5%,  to $4.4
million  from $2.9  million due  primarily  to a 96 basis point  increase in the
weighted  average  costs of deposits to 3.11% during the 2006 period and a $12.0
million increase in the weighted-average  balance outstanding.  Interest expense
on borrowings increased by $399,000,  or 54.0%, due primarily to a $9.7 million,
or 44.0%,  increase  in the  average  balance  outstanding  and a 31 basis point
increase  in the  average  cost of  borrowings.  The  increase  in the yields on
interest-earning  assets  and  costs of  interest-bearing  liabilities  were due
primarily to the overall  increase in interest  rates during the September  2006
period.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income decreased by $413,000, or 5.9%, to $6.6 million for the nine
months ended September 30, 2006. The average  interest rate spread  decreased to
2.33% for the nine  months  ended  September  30,  2006 from  2.79% for the nine
months ended September 30, 2005. The net interest margin  decreased to 3.08% for
the nine months  ended  September  30, 2006 from 3.43% for the nine months ended
September 30, 2005.

Provision for Losses on Loans
-----------------------------

As a result  of the  allowance  for loan  losses  analysis  described  elsewhere
herein,  management concluded that the allowance for loan loss was adequate, and
therefore,  did not record a provision  for losses on loans for the  nine-months
ended  September  30,  2006.  During the nine months ended  September  30, 2005,
management  made  a  provision  for  losses  on  loans  of  $62,000.  As  stated
previously,  there  can be no  assurance  that the loan loss  allowance  will be
sufficient to cover losses on non-performing loans in the future.

Other Income
------------

Other income increased $95,000,  or 31.3%, to $399,000 for the nine months ended
September  30, 2006,  compared to the same period in 2005,  due  primarily to an
increase of $26,000 in earnings on bank-owned life insurance, an increase in the
gain on sale of loans of $10,000,  and an increase in the gain on sale of office
premises and equipment of $44,000 and an increase in other  operating  income of
$28,000,  which was  partially  offset by an increase in the loss on the sale of
real estate acquired through foreclosure of $13,000.

                                       16

<PAGE>

                             Cheviot Financial Corp.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating  Results for the Nine-Month  Periods Ended September 30,
2006 and 2005 (continued)
-------------------------------------------------------------------------------

General, Administrative and Other Expense
-----------------------------------------

General,  administrative and other expense increased $253,000,  or 5.3%, to $5.1
million for the nine months ended  September 30, 2006, from $4.8 million for the
comparable  period in 2005. This increase is a result of an increase of $422,000
in employee  compensation,  which was partially offset by a decrease of $128,000
in property,  payroll,  and other taxes and a decrease in legal and professional
expenses of $74,000.  The increase in employee  compensation and benefits is due
primarily  to an  increase  in  expense  related to stock  benefit  plans and an
increase in the number of employees as a result of the Corporation's growth. The
decrease in property, payroll, and other taxes is due primarily to a decrease in
Ohio  franchise  tax.  The decrease in legal and  professional  expenses was due
primarily to a decline in the amount of  professional  services  provided during
the 2006 period.

Federal Income Taxes
--------------------

The provision for federal income taxes decreased $190,000, or 23.6%, to $614,000
for the nine months ended  September 30, 2006, from $804,000 for the same period
in 2005, due primarily to a $509,000,  or 21.0%,  decrease in pre-tax  earnings.
The  effective  tax rate was 32.0% and 33.1% for the nine  month  periods  ended
September 30, 2006 and 2005. The difference between the Corporation's  effective
tax rate in the  2006 and 2005  periods  and the 34%  statutory  corporate  rate
reflects primarily the tax exempt earnings on bank-owned life insurance.

Comparison of Operating Results for the Three-Month  Periods Ended September 30,
2006 and 2005
-------------------------------------------------------------------------------

General
-------

Net earnings for the three months ended September 30, 2006 totaled $437,000,  an
$123,000  decrease from the $560,000 net earnings reported in the September 2005
period.  The decrease in net earnings reflects a decrease in net interest income
after  the  provision  for  losses  on loans of  $149,000,  and an  increase  of
$116,000,  in general,  administrative  and other expenses,  which was partially
offset by an  increase  in other  income of $64,000 and a decrease of $78,000 in
federal income taxes for the 2006 quarter.

Net Interest Income
-------------------

Total interest  income  increased  $601,000,  or 16.3%,  to $4.3 million for the
three-months  ended  September 30, 2006,  from the  comparable  quarter in 2005.
Interest  income on loans increased  $445,000,  or 14.2%, to $3.6 million during
the 2006 period from $3.1  million for the 2005  period.  This  increase was due
primarily to a $20.2 million,  or 9.3%, increase in the average balance of loans
outstanding,  and a 26 basis  point  increase in the  weighted-average  yield on
loans to 6.07% for 2006 quarter from 5.81% for the three months ended  September
30, 2005.

                                       17

<PAGE>


                             Cheviot Financial Corp.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating Results for the Three-Month  Periods Ended September 30,
2006 and 2005 (continued)
--------------------------------------------------------------------------------

Net Interest Income (continued)
------------------------------

Interest income on mortgage-backed  securities  decreased $29,000,  or 12.4%, to
$204,000 for the three months ended  September  30, 2006,  from $233,000 for the
2005 quarter,  due primarily to a $22.9 million  decrease in the average balance
of  securities  outstanding,  which was  partially  offset  by a 92 basis  point
increase in the average  yield period to period.  Interest  income on investment
securities increased $127,000,  or 50.2%, to $380,000 for the three months ended
September  30,  2006,  compared to $253,000  for the same  quarter in 2005,  due
primarily  to a 113 basis point  increase  in the average  yield to 4.49% in the
2006 quarter,  and an increase of $3.8 million,  or 12.5% in the average balance
of investment securities outstanding.  Interest income on other interest-earning
deposits  increased  $58,000,  or 101.8% to $115,000  for the three months ended
September 30, 2006.

Interest  expense  increased  $780,000,  or 57.7%, to $2.1 million for the three
months ended  September 30, 2006, from $1.4 million for the same period in 2005.
Interest  expense on deposits  increased by $735,000,  or 70.2%, to $1.8 million
from $1.1 million due  primarily  to a 115 basis point  increase in the weighted
average  costs of deposits to 3.50% during the 2006 period and a $25.8  million,
or 14.5%, increase in the weighted-average balance outstanding. Interest expense
on borrowings  increased by $45,000,  or 14.8%, due primarily to a $1.7 million,
or 6.3%,  increase  in the  average  balance  outstanding  and a 34 basis  point
increase  in the  average  cost of  borrowings.  The  increase  in the yields on
interest-earning  assets  and  costs of  interest-bearing  liabilities  were due
primarily to the overall  increase in interest  rates during the September  2006
quarter.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest  income  decreased by  $179,000,  or 7.7%,  to $2.2 million for the
three  months  ended  September  30,  2006.  The  average  interest  rate spread
decreased to 2.13% for the three months ended  September 30, 2006 from 2.67% for
the three months ended September 30, 2005. The net interest margin  decreased to
2.91% for the three  months  ended  September  30, 2006 from 3.36% for the three
months ended September 30, 2005.

Provision for Losses on Loans
-----------------------------

As a result of the allowance  for loan losses  analysis  described  elsewhere in
this  document,  management  concluded  that the  allowance  for  loan  loss was
adequate, and therefore,  did not record a provision for losses on loans for the
three-months  ended September 30, 2006.  There can be no assurance that the loan
loss allowance will be sufficient to cover losses on non-performing loans in the
future.  During the three months ended  September  30, 2005,  management  made a
provision for losses on loans of $30,000.

Other Income
------------

Other income increased $64,000, or 57.1%, to $176,000 for the three months ended
September  30, 2006,  compared to the same quarter in 2005,  due  primarily to a
gain on the sale of office premises and equipment totaling $44,000,  an increase
of $7,000 in  earnings on  bank-owned  life  insurance  and an increase in other
operating income of $10,000.

                                       18

<PAGE>


                             Cheviot Financial Corp.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Comparison of Operating Results for the Three-Month  Periods Ended September 30,
2006 and 2005 (continued)
--------------------------------------------------------------------------------

General, Administrative and Other Expense
-----------------------------------------

General,  administrative and other expense increased $116,000,  or 7.4%, to $1.7
million for the three months ended September 30, 2006, from $1.6 million for the
comparable quarter in 2005. This increase is a result of an increase of $142,000
in employee  compensation  and  benefits,  a $30,000  increase in occupancy  and
equipment and a $22,000 increase in legal and professional services,  which were
partially offset by a $66,000 decrease in property, payroll, and other taxes and
a $14,000 decrease in data processing.  The decrease in data processing cost was
due primarily to the  implementation of online banking during 2005. The decrease
in  property,  payroll,  and other taxes is due  primarily to a decrease in Ohio
franchise  tax.  The  increase  in  employee  compensation  and  benefits is due
primarily  to an  increase  in  expense  related to stock  benefit  plans and an
increase in the number of employees as a result of the Corporation's growth. The
increase in occupancy and equipment is due primarily to expense incurred for the
operation  of the  new  branch  in  Delhi,  Ohio.  The  increase  in  legal  and
professional  services was due primarily to expenses incurred in the preliminary
proceedings  in  litigation  wherein the  Corporation  is defending its security
interest in collateral.

Federal Income Taxes
--------------------

The provision for federal income taxes decreased $78,000, or 28.0%, to $201,000
for the three months ended September 30, 2006, from $279,000 for the same
quarter in 2005, due primarily to a $201,000, or 24.0%, decrease in pre-tax
earnings. The effective tax rate was 31.5% and 33.3% for the three month periods
ended September 30, 2006 and 2005. The difference between the Corporation's
effective tax rate in the 2006 and 2005 periods and the 34% statutory corporate
rate is due primarily to the tax exempt earnings on bank-owned life insurance.

ITEM 3   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the Corporation's market risk since the
Form 10-K filed with the Securities and Exchange Commission for the year ended
December 31, 2005.

ITEM 4   CONTROLS AND PROCEDURES

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

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

                                       19

<PAGE>


                             Cheviot Financial Corp.

                                     PART II


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

          None.

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

          There have been no changes to the Corporation's risk factors since the
          filing of the  Corporation's  Annual  Report on Form 10-K for the year
          ended December 31, 2005.

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

          The  Corporation  announced a repurchase  plan on  September  13, 2006
          which  provides  for the  repurchase  of 5% or  471,140  shares of our
          common  stock.  As of September  30,  2006,  the  Corporation  has not
          purchased any shares pursuant to the program.

          The  Corporation  announced a repurchase  plan on March 29, 2005 which
          provided  for the  repurchase  of 5% or  495,937  shares of our common
          stock.  As of September 30, 2006,  the  Corporation  had purchased all
          shares pursuant to the program.
<TABLE>
<CAPTION>

                                                                                                      Total # of
                                                                                                   shares purchased
                                                              Total              Average          as part of publicly
                                                           # of shares         price paid           announced plans
                  Period                                    purchased           per share             or programs
                  ------                                    ---------          ----------           -------------

<S>                                                          <C>                  <C>                   <C>
                  July 1-31, 2006                            20,295               $11.89                449,864
                  August 1-31, 2006                          46,073               $12.02                495,937
                  September 1 - 30, 2006                         -                $    -                495,937
</TABLE>

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

         Not applicable.

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

         None.

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

         None.

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

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

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

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

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

                                       20
<PAGE>


                             Cheviot Financial Corp.

                                   SIGNATURES


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



Date:   November 14, 2006             By:  /s/ Thomas J. Linneman
                                           ------------------------------------
                                           Thomas J. Linneman
                                           President and Chief Executive Officer



Date:   November 14, 2006             By:  /s/ Scott T. Smith
                                           ------------------------------------
                                           Scott T. Smith
                                           Chief Financial Officer

                                       21

<PAGE>
                                                                   Exhibit 31.1


                      CERTIFICATION PURSUANT TO RULE 13A-14
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                    AS ADOPTED PURSUANT TO SECTION 302 OF THE
                           SARBANES-OXLEY ACT OF 2002

I, Thomas J. Linneman, certify that:

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

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

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

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

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

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

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

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

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

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

Date:  November 14, 2006                   /s/Thomas J. Linneman
                                           ------------------------------------
                                           Thomas J. Linneman
                                           President and Chief Executive Officer
                                           (principal executive officer)

<PAGE>

                                                                   Exhibit 31.2

                      CERTIFICATION PURSUANT TO RULE 13A-14
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                    AS ADOPTED PURSUANT TO SECTION 302 OF THE
                           SARBANES-OXLEY ACT OF 2002

I, Scott T. Smith, certify that:

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

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

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

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

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

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

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

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

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

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


Date:  November 14, 2006                           /s/Scott T. Smith
                                                   ----------------------------
                                                   Scott T. Smith
                                                   Chief Financial Officer
                                                  (principal financial officer)

<PAGE>

                                                                    Exhibit 32.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In  connection  with the  Quarterly  Report  of  Cheviot  Financial  Corp.  (the
"Company"),  on Form 10-Q for the period ended September 30, 2006, as filed with
the Securities and Exchange  Commission on the date of this  Certification  (the
"Report"),  I, Thomas J. Linneman,  President and Chief Executive Officer of the
Company,  certify,  pursuant to 18 U.S.C.  Section 1350, as adopted  pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

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

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

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

                                           /s/Thomas J. Linneman
                                           ------------------------------------
                                           Thomas J. Linneman
                                           President and Chief Executive Officer

         Date:  November 14, 2006

<PAGE>

                                                                    Exhibit 32.2

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In  connection  with the  Quarterly  Report  of  Cheviot  Financial  Corp.  (the
"Company"),  on Form 10-Q for the period ended September 30, 2006, as filed with
the Securities and Exchange  Commission on the date of this  Certification  (the
"Report"),  I, Scott T. Smith, Chief Financial Officer of the Company,  certify,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to my knowledge:

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

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

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



                                                     /s/Scott T. Smith
                                                     --------------------------
                                                     Scott T. Smith
                                                     Chief Financial Officer

         Date:  November 14, 2006