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, 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. 0-50529

                             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 [  ]
Small business issuer [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 12, 2009, the latest practicable date, 8,868,706 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.

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 during the
preceding 12 months (or for such shorter period that the registrant was required
to submit and post such files).

Yes [   ]         No  [   ]

                                  Page 1 of 30
<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                                               21

               Quantitative and Qualitative Disclosures about
               Market Risk                                              29

               Controls and Procedures                                  29

PART II  -   OTHER INFORMATION                                          30

SIGNATURES                                                              31

                                       2

<PAGE>

                             Cheviot Financial Corp.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

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

                                                                                      September 30,        December 31,
         ASSETS                                                                                2009                2008
                                                                                        (Unaudited)

<S>                                                                                      <C>                 <C>
Cash and due from banks                                                                   $   2,583           $   4,192
Federal funds sold                                                                            5,558               4,063
Interest-earning deposits in other financial institutions                                     4,753               1,758
                                                                                          ---------           ---------
         Cash and cash equivalents                                                           12,894              10,013

Investment securities available for sale - at fair value                                     49,525              23,909
Investment securities held to maturity - at cost, approximate
  market value of $- and $7,074 at September 30, 2009
  and December 31, 2008, respectively                                                             -               7,000
Mortgage-backed securities available for sale - at fair value                                 5,217                 648
Mortgage-backed securities held to maturity - at cost, approximate
  market value of $6,103 and $6,830 at September 30, 2009 and
  December 31, 2008, respectively                                                             6,005               6,915
Loans receivable - net                                                                      251,661             267,754
Loans held for sale - at lower of cost or market                                                429                 729
Real estate acquired through foreclosure - net                                                2,391               1,064
Office premises and equipment - at depreciated cost                                           4,945               4,969
Federal Home Loan Bank stock - at cost                                                        3,369               3,369
Accrued interest receivable on loans                                                          1,111               1,159
Accrued interest receivable on mortgage-backed securities                                        38                  32
Accrued interest receivable on investments and interest-earning deposits                        395                 466
Prepaid expenses and other assets                                                               796                 297
Bank-owned life insurance                                                                     3,618               3,516
Prepaid federal income taxes                                                                     90                 160
                                                                                          ---------           ---------

         Total assets                                                                     $ 342,484           $ 332,000
                                                                                          =========           =========

         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                   $232,325            $216,048
Advances from the Federal Home Loan Bank                                                     37,973              44,604
Advances by borrowers for taxes and insurance                                                   992               1,464
Accrued interest payable                                                                        147                 172
Accounts payable and other liabilities                                                        1,822               1,069
Deferred federal income taxes                                                                   528                 412
                                                                                          ---------           ---------
         Total liabilities                                                                  273,787             263,769

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, 2009 and December 31, 2008, respectively            99                  99
  Additional paid-in capital                                                                 43,771              43,625
  Shares acquired by stock benefit plans                                                     (2,426)             (2,829)
  Treasury stock - at cost, 1,050,045 and 1,046,247 shares at September 30, 2009
    and December 31, 2008, respectively                                                     (12,828)            (12,799)
  Retained earnings - restricted                                                             40,015              40,276
  Accumulated comprehensive gain (loss), unrealized gains (losses) on securities
    available for sale, net of related tax effects (benefits)                                    66                (141)
                                                                                          ---------           ---------
         Total shareholders' equity                                                          68,697              68,231
                                                                                          ---------           ---------

         Total liabilities and shareholders' equity                                       $ 342,484           $ 332,000
                                                                                          =========           =========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       3

<PAGE>

                             Cheviot Financial Corp.

                       CONSOLIDATED STATEMENTS OF EARNINGS

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

                                                                          Nine months ended            Three months ended
                                                                            September 30,                 September 30,
                                                                       2009          2008             2009           2008
                                                                                           (Unaudited)
Interest income
<S>                                                                   <C>          <C>                <C>          <C>
  Loans                                                               $11,103      $11,489           $ 3,577      $ 3,922
  Mortgage-backed securities                                              342          369               110          107
  Investment securities                                                 1,038        1,582               384          531
  Interest-earning deposits and other                                      35           80                10           10
                                                                      -------      -------           -------      -------
         Total interest income                                         12,518       13,520             4,081        4,570

Interest expense
  Deposits                                                              3,805        5,261             1,169        1,513
  Borrowings                                                            1,350        1,226               422          480
                                                                      -------      -------           -------      -------
         Total interest expense                                         5,155        6,487             1,591        1,993
                                                                      -------      -------           -------      -------

         Net interest income                                            7,363        7,033             2,490        2,577

Provision for losses on loans                                             803          413               351          125
                                                                      -------      -------           -------      -------

         Net interest income after provision for losses on loans        6,560        6,620             2,139        2,452

Other income (expense)
  Rental                                                                   38           39                13           13
  Gain on sale of loans                                                   319           26                47           17
  Loss on sale of real estate acquired through foreclosure                (54)         (48)               (5)          (5)
  Earnings on bank-owned life insurance                                   103           99                34           34
  Other operating                                                         247          246                90           87
                                                                      -------      -------           -------      -------
         Total other income                                               653          362               179          146

General, administrative and other expense
  Employee compensation and benefits                                    3,384        3,247             1,100        1,150
  Occupancy and equipment                                                 429          418               147          140
  Property, payroll and other taxes                                       745          719               235          229
  Data processing                                                         257          236                73           77
  Legal and professional                                                  316          285                97           93
  Advertising                                                             150          150                50           50
  FDIC expense                                                            194           22                38            9
  Other operating                                                         570          453               143          142
                                                                      -------      -------           -------      -------
         Total general, administrative and other expense                6,045        5,530             1,883        1,890
                                                                      -------      -------           -------      -------
         Earnings before income taxes                                   1,168        1,452               435          708

Federal income taxes (benefit)
  Current                                                                 401          452               219          345
  Deferred                                                                  9            6               (25)         (88)
                                                                      -------      -------           -------      -------
         Total federal income taxes                                       410          458               194          257
                                                                      -------      -------           -------      -------
         NET EARNINGS                                                 $   758      $   994           $   241      $   451
                                                                      =======      =======           =======      =======
         EARNINGS PER SHARE
           Basic                                                      $   .09      $   .11           $   .03      $   .05
                                                                      =======      =======           =======      =======
           Diluted                                                    $   .09      $   .11           $   .03      $   .05
                                                                      =======      =======           =======      =======
           Dividends per common share                                 $   .30      $   .27           $   .10      $   .09
                                                                      =======      =======           =======      =======
</TABLE>
See accompanying notes to consolidated financial statements.

                                        4
<PAGE>

                             Cheviot Financial Corp.

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

         For the nine and three months ended September 30, 2009 and 2008
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                For the nine months            For the three months
                                                                                ended September 30,             ended September 30,
                                                                                 2009         2008              2009         2008

<S>                                                                              <C>          <C>                <C>        <C>
Net earnings for the period                                                      $758         $ 994              $241       $ 451
Other comprehensive income (loss), net of tax (benefits):
  Unrealized holding gains (losses) on securities during the period, net of tax
    (benefits) of $107and $(262) for the nine months ended September 30, 2009
    and 2008, respectively, and $97and $(151) for the three months ended
    September 30, 2009 and 2008, respectively                                     207          (508)              188        (294)
                                                                                 ----         -----              ----        ----
Comprehensive income                                                             $965         $ 486              $429       $ 157
                                                                                 ====         =====              ====       =====
Accumulated comprehensive income (loss)                                          $ 66         $(462)             $ 66       $(462)
                                                                                 ====         =====              ====       =====

</TABLE>

See accompanying notes to consolidated financial statements.

                                        5

<PAGE>

                             Cheviot Financial Corp.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              For the nine months ended September 30, 2009 and 2008
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                               2009                2008
                                                                                                      (Unaudited)
Cash flows from operating activities:
<S>                                                                                       <C>                 <C>
  Net earnings for the period                                                               $   758             $   994
  Adjustments to reconcile net earnings to net cash
  provided by operating activities:
    Amortization of premiums and discounts on investment
      and mortgage-backed securities, net                                                        15                 (15)
    Depreciation                                                                                234                 214
    Amortization of deferred loan origination fees - net                                        (20)                  -
    Proceeds from sale of loans in the secondary market                                      19,405               2,833
    Loans originated for sale in the secondary market                                       (19,086)             (2,787)
    Gain on sale of loans                                                                      (319)                (26)
    Loss on sale of real estate acquired through foreclosure                                     54                  48
    Federal Home Loan Bank stock dividends                                                        -                (131)
    Provision for losses on loans                                                               803                 413
    Net increase in cash surrender value of bank-owned life insurance                          (102)                (99)
    Amortization of expense related to stock benefit plans                                      363                 376
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                       48                 (62)
      Accrued interest receivable on mortgage-backed securities                                  (6)                 16
      Accrued interest receivable on investments and interest-
        earning deposits                                                                         71                 (98)
      Prepaid expenses and other assets                                                        (499)               (215)
      Accounts payable and other liabilities                                                    753                 103
      Accrued interest payable                                                                  (25)                 60
      Federal income taxes
        Current                                                                                  70                 199
        Deferred                                                                                  9                   6
                                                                                             ------              ------
         Net cash provided by operating activities                                            2,526               1,829
                                                                                             ------              ------

Cash flows used in investing activities:
  Principal repayments on loans                                                              58,684              39,471
  Loan disbursements                                                                        (42,787)            (56,758)
  Loans purchased                                                                            (1,700)               (455)
  Purchase of investment securities - available for sale                                    (55,940)            (18,973)
  Proceeds from maturity of investment securities - available for sale                       30,565              21,000
  Proceeds from maturity of investment securities - held to maturity                          7,000                   -
  Purchase of mortgage-backed securities - available for sale                                (5,267)                  -
  Principal repayments on mortgage-backed securities - available for sale                       755                 143
  Principal repayments on mortgage-backed securities - held to maturity                         911               2,243
  Proceeds from sale of real estate acquired through foreclosure                                268                 661
  Additions to real estate acquired through foreclosure                                        (236)                 (9)
  Proceeds from sale of office premises and equipment                                             1                   -
  Purchase of office premises and equipment                                                    (211)                (69)
                                                                                             ------              ------
         Net cash used in investing activities                                               (7,957)            (12,746)
                                                                                             ------              ------
Cash flows provided by financing activities:
  Net increase (decrease) in deposits                                                        16,277              (6,810)
  Proceeds from Federal Home Loan Bank advances                                                   -              25,500
  Repayments on Federal Home Loan Bank advances                                              (6,631)             (8,105)
  Advances by borrowers for taxes and insurance                                                (472)               (287)
  Treasury stock repurchases                                                                    (29)               (649)
  Stock option expense, net                                                                     186                 183
  Dividends paid on common stock                                                             (1,019)               (925)
                                                                                             ------              ------
         Net cash provided by financing activities                                            8,312               8,907
                                                                                             ------              ------

Net increase (decrease) in cash and cash equivalents                                          2,881              (2,010)

Cash and cash equivalents at beginning of period                                             10,013               9,450
                                                                                             ------              ------

Cash and cash equivalents at end of period                                                  $12,894              $7,440
                                                                                             ======              ======
</TABLE>
See accompanying notes to consolidated financial statements.
                                        6

<PAGE>



                             Cheviot Financial Corp.

                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

              For the nine months ended September 30, 2009 and 2008
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                               2009                2008
                                                                                                      (Unaudited)
Supplemental disclosure of cash flow information: Cash paid during the period
  for:
<S>                                                                                         <C>                 <C>
    Federal income taxes                                                                     $  327              $  261
                                                                                             ======              ======
    Interest on deposits and borrowings                                                      $5,180              $6,427
                                                                                             ======              ======
Supplemental disclosure of noncash investing activities:
  Transfer of loans to real estate acquired through foreclosure                              $1,413              $  541
                                                                                             ======              ======
  Loans originated upon sales of real estate acquired through foreclosure                    $    -              $  138
                                                                                             ======              ======
 Recognition of mortgage servicing rights in accordance with SFAS No. 140                    $  153              $   15
                                                                                             ======              ======
</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, 2009 and 2008


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

Cheviot  Financial  Corp.  ("Cheviot  Financial"  or  the  "Corporation")  is  a
financial  holding  company,  the  principal  asset  of  which  consists  of its
ownership  of Cheviot  Savings  Bank (the  "Savings  Bank").  The  Savings  Bank
conducts a general  banking  business  in  southwestern  Ohio which  consists of
attracting  deposits and applying  those funds  primarily to the  origination of
real  estate  loans.  The  Corporation  is 62% owned by Cheviot  Mutual  Holding
Company.  Cheviot  Savings'  profitability  is  significantly  dependent  on net
interest  income,   which  is  the  difference   between  interest  income  from
interest-earning  assets  and the  interest  expense  paid  on  interest-bearing
liabilities.  Net  interest  income  is  affected  by  the  relative  amount  of
interest-earning  assets  and  interest-bearing  liabilities  and  the  interest
received or paid on these balances.

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, 2008. 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, 2009, 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, 2009,  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, 2009 and December 31, 2008,  we had $38.0 million
and $44.6 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 $105.2 million and $99.3 million, respectively.

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, 2009 and 2008


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, 2009, loan originations totaled $61.9 million, compared to $59.5 million for
the nine months ended September 30, 2008.

Total deposits  increased  $16.3 million during the nine months ended  September
30, 2009,  compared to a decrease of $6.8  million  during the nine months ended
September 30, 2008.  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, 2009.

<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            $ 12,000       $ 2,236      $ 3,178      $20,559     $ 37,973
      Certificates of deposit                              107,755        25,200       11,041            -      143,996

    Amount of loan commitments and expiration per period:
      Commitments to originate one- to four-family
        loans                                                  589             -            -            -          589
      Home equity lines of credit                           12,197             -            -            -       12,197
      Undisbursed loans in process                           3,987             -            -            -        3,987
                                                          --------       -------      -------      -------     --------


         Total contractual obligations                    $136,528       $27,436      $14,219      $20,559     $198,742
                                                          ========       =======      =======      =======     ========
</TABLE>

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, 2009 and 2008


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

At September  30, 2009 and 2008,  we exceeded all of the  applicable  regulatory
capital  requirements.  Our core (Tier 1) capital  was $57.2  million  and $55.0
million,  or 17.1 % and 16.7% of total assets at September 30, 2009 and 2008. In
order to be classified as "well-capitalized"  under federal banking regulations,
we were  required  to have core  capital of at least $20.1  million,  or 6.0% of
assets as of September 30, 2009. 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, 2009 and 2008, we had a total  risk-based  capital
ratio of 34.5% and 32.2%, 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.   The  weighted-average   common  shares  outstanding  includes
5,455,313  shares held by our mutual holding  company.  Weighted-average  common
shares deemed outstanding gives effect to 178,540 and 214,247 unallocated shares
held by the ESOP for the three and nine  months  ended  September  30,  2009 and
2008, respectively.

<TABLE>
<CAPTION>
                                                          For the nine months ended            For the three months ended
                                                                September 30,                          September 30,
                                                            2009            2008                    2009           2008

<S>                                                  <C>              <C>                    <C>            <C>
         Weighted-average common shares
           outstanding (basic)                         8,691,891       8,692,243               8,690,166      8,668,352

         Dilutive effect of assumed exercise
           of stock options                               25,997          50,176                  24,658         54,816
                                                       ---------       ---------               ---------      ---------
         Weighted-average common shares
           outstanding (diluted)                       8,717,888       8,742,419               8,714,824      8,723,168
                                                       =========       =========               =========      =========
</TABLE>

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.  During  2009,  2008,  and  2007
approximately 8,060, 8,060, and 6,460 option shares were granted subject to five
year vesting.

The Corporation  follows FASB Accounting  Standard  Codification  Topic 718 (ASC
718),  "Compensation  - Stock  Compensation",  for its stock option  plans,  and
accordingly, the Corporation recognizes the expense of these grants as required.
Stock-based employee compensation costs pertaining to stock options is reflected
as a net  increase  in  equity,  for  both  any new  grants,  as well as for all
unvested options  outstanding at December 31, 2005, in both cases using the fair
values established by usage of the Black-Scholes option pricing model,  expensed
over the vesting period of the underlying option.

                                       10
<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008


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

The Corporation elected the modified  prospective  transition method in applying
ASC 718.  Under  this  method,  the  provisions  of ASC 718 apply to all  awards
granted or  modified  after the date of  adoption,  as well as for all  unvested
options  outstanding  at December 31, 2005. The  compensation  cost recorded for
unvested  equity-based  awards is based on their  grant-date fair value. For the
nine months ended  September  30, 2009,  the  Corporation  recorded  $186,000 in
after-tax  compensation cost for equity-based awards that vested during the nine
months ended  September  30, 2009.  The  Corporation  has $201,000  unrecognized
pre-tax  compensation  cost related to non-vested  equity-based  awards  granted
under its stock incentive plan as of September 30, 2009, which is expected to be
recognized over a weighted-average vesting period of approximately 0.8 years.

A summary of the status of the  Corporation's  stock option plan as of September
30, 2009, and changes during the period then ended is presented below:

<TABLE>
<CAPTION>
                                                                    Nine months ended                   Year ended
                                                                   September 30, 2009                December 31, 2008

                                                                                Weighted-                       Weighted-
                                                                                 average                         average
                                                                                exercise                        exercise
                                                                  Shares          price           Shares          price

<S>                                                               <C>            <C>               <C>            <C>
    Outstanding at beginning of period                            404,280        $11.16            396,220       $11.21
    Granted                                                         8,060          8.48              8,060         9.03
    Exercised                                                           -            -                   -            -
    Forfeited                                                           -            -                   -            -
                                                                  -------       -------            -------       ------
    Outstanding at end of period                                  412,340       $ 11.11            404,280       $11.16
                                                                  =======       =======            =======       ======
    Options exercisable at period-end                             314,792       $ 11.17            233,936       $11.17
                                                                  =======       =======            =======       ======
    Fair value of options granted                                               $  3.31                          $ 1.93
                                                                                =======                          ======
</TABLE>


The following information applies to options outstanding at September 30, 2009:

    Number outstanding                                              412,340
    Exercise price                                           $8.48 - $13.63
    Weighted-average exercise price                                  $11.17
    Weighted-average remaining contractual life                   5.8 years

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, 2009 and 2008


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  2009:  dividend  yield  of  4.48%,  expected
volatility of 56.38%,  risk-free  interest rate of 3.25% and an expected life of
10 years for each grant.

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

6.   Investment and Mortgage-backed Securities
     ----------------------------------------

The  amortized  cost,  gross  unrealized  gains,  gross  unrealized  losses  and
estimated  fair  values of  investment  securities  at  September  30,  2009 and
December 31, 2008 are shown below.

<TABLE>
<CAPTION>
                                                                           September 30, 2009
                                                                           Gross          Gross      Estimated
                                                       Amortized      unrealized     unrealized           fair
                                                            cost           gains         losses          value
                                                                              (In thousands)
    Available for Sale:
<S>                                                     <C>              <C>            <C>           <C>
      U.S. Government agency securities                 $47,927          $182            $ 61         $48,048
      Municipal obligations                               1,545            19              87           1,477
                                                        -------          ----            ----         -------
                                                        $49,472          $201            $148         $49,525
                                                        =======          ====            ====         =======

                                                                            December 31, 2008
                                                                           Gross          Gross      Estimated
                                                       Amortized      unrealized     unrealized           fair
                                                            cost           gains         losses          value
                                                                              (In thousands)
    Available for Sale:
      U.S. Government agency securities                 $21,995           $62            $ 45         $22,012
      Municipal obligations                               2,110             2             215           1,897
                                                        -------           ---            ----         -------
                                                        $24,105           $64            $260         $23,909
                                                        =======           ===            ====         =======
    Held to Maturity:
      U.S. Government agency securities                 $ 7,000           $74            $  -         $ 7,074
                                                        =======           ===            ====         =======
</TABLE>

                                       12

<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008

6.   Investment and Mortgage-backed Securities (continued)
     -----------------------------------------

The amortized cost of investment securities at September 30, 2009 by contractual
term to maturity, are shown below.

                                                  September 30,
                                                       2009
                                                  (In thousands)
    Less than one year                             $  3,021
    One to five years                                31,906
    Five to ten years                                 6,000
    More than ten years                               8,545
                                                    -------
                                                    $49,472
                                                    =======

The  amortized  cost,  gross  unrealized  gains,  gross  unrealized  losses  and
estimated  fair values of  mortgage-backed  securities at September 30, 2009 and
December 31, 2008 are shown below.

<TABLE>
<CAPTION>
                                                                           September 30, 2009
                                                                           Gross          Gross      Estimated
                                                       Amortized      unrealized     unrealized           fair
                                                            cost           gains         losses          value
                                                                              (In thousands)
    Available for sale:
     Federal Home Loan Mortgage
<S>                                                      <C>               <C>             <C>         <C>
        Corporation adjustable-rate
        participation certificates                        $  883            $  5           $  -         $  888
      Federal National Mortgage
        Association adjustable-rate
        participation certificates                           708               1              -            709
      Government National Mortgage
        Association adjustable-rate
        participation certificates                         3,579              41              -          3,620
                                                          ------            ----              -         ------
                                                          $5,170            $ 47           $  -         $5,217
                                                          ======            ====           ====         ======
    Held to maturity:
      Federal Home Loan Mortgage
        Corporation adjustable-rate
        participation certificates                        $  625             $ 1           $  2         $  624
      Federal National Mortgage
        Association adjustable-rate
        participation certificates                           668               2              1            669
      Government National Mortgage
        Association adjustable-rate
        participation certificates                         4,712              98              -          4,810
                                                          ------            ----              -         ------
                                                          $6,005            $101           $  3         $6,103
                                                          ======            ====           ====         ======
</TABLE>

                                       13

<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008

6.   Investment and Mortgage-backed Securities (continued)
     -----------------------------------------

<TABLE>
<CAPTION>
                                                                            December 31, 2008
                                                                           Gross          Gross      Estimated
                                                       Amortized      unrealized     unrealized           fair
                                                            cost           gains         losses          value
                                                                              (In thousands)
    Available for sale:
      Government National Mortgage
        Association adjustable-rate
<S>                                                       <C>                <C>            <C>           <C>
        participation certificates                        $  666             $ -            $18         $  648
                                                          ======             ===            ===         ======
    Held to maturity:
      Federal Home Loan Mortgage
        Corporation adjustable-rate
        participation certificates                        $  683             $ 1            $ 1         $  683
      Federal National Mortgage                              757               -              5            752
        Association adjustable-rate
        participation certificates
      Government National Mortgage
        Association adjustable-rate
        participation certificates                         5,475               -             80          5,395
                                                          ------               -            ---         ------
                                                          $6,915             $ 1            $86         $6,830
                                                          ======             ===            ===         ======
</TABLE>


The amortized cost of mortgage-backed securities,  including those designated as
available for sale, at September 30, 2009, by contractual terms to maturity, are
shown below. Expected maturities will differ from contractual maturities because
borrowers may generally prepay obligations without prepayment penalties.

                                                              September 30,
                                                                    2009
                                 (In thousands)

    Due in one year or less                                     $    437
    Due in one year through five years                             1,923
    Due in five years through ten years                            2,847
    Due in more than ten years                                     5,968
                                                                --------
                                                                $ 11,175
                                                                ========

                                       14
<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008

6.   Investment and Mortgage-backed Securities (continued)
     -----------------------------------------

The table below indicates the length of time individual  securities have been in
a continuous unrealized loss position at September 30, 2009:

<TABLE>
<CAPTION>

                            Less than 12 months             12 months or longer                    Total
    Description of       Number of   Fair  Unrealized    Number of    Fair    Unrealized     Number of    Fair     Unrealized
      securities       investments   value  losses     investments    value     losses      investments   value     losses
                                                             (Dollars in thousands)
    U.S. Government
<S>                         <C>    <C>         <C>        <C>        <C>        <C>            <C>      <C>          <C>
      agency securities     4      $7,941      $58         1         $1,998      $  3            5       $ 9,939       $ 61
    Municipal obligations   -          -         -         2          1,147        87            2         1,147         87
    Mortgage-backed
      securities            6         356        1         4             36         2           10           392          3
                           --      ------       --         -         ------      ----           --       -------       ----

    Total temporarily
      impaired securities  10      $8,297      $59         7         $3,181      $ 92           17       $11,478       $151
                           ==      ======       ==         =         ======      ====           ==       =======       ====
</TABLE>

Management  has  the  intent  and  ability  to  hold  these  securities  for the
foreseeable  future.  The  decline  in the  fair  value is  primarily  due to an
increase in market  interest  rates.  The fair values are expected to recover as
securities  approach  maturity dates. The Company has evaluated these securities
and has determined that the decline in their values is temporary.

7.   Income Taxes
     ------------

The  Corporation  uses an asset and liability  approach to accounting for income
taxes. The asset and liability approach requires the recognition of deferred tax
assets and  liabilities  for the expected  future tax  consequences of temporary
differences  between  the  carrying  amounts  and the tax  bases of  assets  and
liabilities.  Deferred tax assets are  recognized  if it is more likely than not
that a future  benefit will be  realized.  The  Corporation  accounts for income
taxes  in  accordance  with  Financial   Accounting   Standards  Board  ("FASB")
Accounting  Standards  Codification  ("ASC") 740, Income Taxes, which prescribes
the  recognition  and  measurement  criteria  related to tax positions  taken or
expected to be taken in a tax return.

The  Corporation  recognizes the financial  statement  benefit of a tax position
only after  determining  that the relevant tax authority  would more likely than
not sustain the  position  following  an audit.  For tax  positions  meeting the
more-likely-than-not   threshold,   the  amount   recognized  in  the  financial
statements is the largest benefit that has a greater than 50 percent  likelihood
of being realized upon ultimate  settlement with the relevant tax authority.  At
adoption  date,  the  Corporation  applied the standard to all tax positions for
which the statute of limitations remained open. The Corporation was not required
to record any  liability  for  unrecognized  tax benefits as of January 1, 2007.
There have been no material  changes in unrecognized  tax benefits since January
1, 2007. As stated in the Annual Report,  the only known tax attribute which can
influence the Corporation's  effective tax rate is the utilization of charitable
contribution carryforwards.

                                       15
<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008

7.   Income Taxes (continued)
     ------------

The Corporation is subject to income taxes in the U.S. federal jurisdiction,  as
well as various state  jurisdictions.  Tax regulations  within each jurisdiction
are subject to the  interpretation  of the related tax laws and  regulations and
require significant  judgment to apply. With few exceptions,  the Corporation is
no longer  subject  to U.S.  federal,  state and local,  or non U.S.  income tax
examinations by tax authorities for the years before 2005.

The  Corporation  will  recognize,  if applicable,  interest  accrued related to
unrecognized  tax  benefits  in  interest  expense and  penalties  in  operating
expenses.

8.   Disclosures about Fair Value of Assets and Liabilities
     ------------------------------------------------------

Pursuant  to GAAP,  fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability in an orderly  transaction between
market  participants at the measurement date. A three-level  hierarchy exists in
GAAP for fair value  measurements  based upon the inputs to the  valuation of an
asset or liability.

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

   Level 2   Observable inputs other than Level 1 prices, such as quoted prices
             for similar assets or liabilities; quoted prices in markets that
             are not active; or other inputs that are observable or can be
             corroborated by observable market data for substantially the full
             term of the assets or liabilities

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

Fair  value  methods  and  assumptions  are set  forth  below  for each  type of
financial instrument.

Securities  available for sale: Fair value on available for sale securities were
based upon a market approach. Securities which are fixed income instruments that
are not  quoted on an  exchange,  but are traded in active  markets,  are valued
using prices  obtained from our  custodian,  which used third party data service
providers.  Available  for sale  securities  includes  U.S.  agency  securities,
municipal bonds and mortgage-backed agency securities

                                       16
<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008


8.   Disclosures About Fair Value of Assets and Liabilities (continued)

<TABLE>
<CAPTION>
                                                                       Fair Value Measurements at
                                                                            September 30, 2009
                                                             -------------------------------------------------
                                                              Quoted prices
                                                                 in active       Significant    Significant
                                                                markets for         other          other
                                                                 identical       observable    unobservable
                                                                  assets           inputs         inputs
                                        September 30, 2009       (Level 1)        (Level 2)      (Level 3)
                                        ------------------       ---------        ---------      ---------
<S>                                     <C>                                        <C>
    Securities available for sale          $ 54,742                               $54,742
</TABLE>

The Corporation is  predominately an asset based lender with real estate serving
as collateral on a substantial  majority of loans.  Loans which are deemed to be
impaired are primarily valued on a nonrecurring  basis at the fair values of the
underlying  real  estate  collateral.   Such  fair  values  are  obtained  using
independent  appraisals,  which the Corporation  considers to be Level 2 inputs.
The  aggregate  carrying  amount of  impaired  loans at  September  30, 2009 was
approximately $2.0 million.

9.   Effects of Recent Accounting Pronouncements
     -------------------------------------------

On July 1, 2009,  the FASB's  GAAP  Codification  became  effective  as the sole
authoritative source of US GAAP. This codification  reorganizes current GAAP for
non-governmental entities into a topical index to facilitate accounting research
and to provide users additional  assurance that they have referenced all related
literature  pertaining to a given topic. Existing GAAP prior to the Codification
was not altered in compilation of the GAAP  Codification.  The GAAP Codification
encompasses  all FASB  Statements  of  Financial  Accounting  Standards  (SFAS),
Emerging Issues Task Force (EITF)  statements,  FASB Staff Positions (FSP), FASB
Interpretations  (FIN), FASB Derivative  Implementation  Guides (DIG),  American
Institute of Certified Public Accountants (AICPA) Statement of Positions (SOPS),
Accounting  Principles  Board (APB) Opinions and Accounting  Research  Bulletins
(ARBs)  along with the  remaining  body of GAAP  effective  as of June 30, 2009.
Financial  Statements  issued for all interim and annual  periods  ending  after
September 15, 2009 will need to reference  accounting  guidance  embodied in the
Codification   as   opposed  to   referencing   the   previously   authoritative
pronouncements. Accounting literature included in the codification is referenced
by Topic, Subtopic, Section and paragraph.

In June 2008, the Financial  Accounting Standards Board ("FASB") issued FASB ASC
260-10,   Determining   whether   Instruments  Granted  in  Share-Based  Payment
Transactions  are   Participating   Securities.   Under  this  topic,   unvested
share-based payment awards that contain  nonforfeitable  rights to dividends are
considered to be a separate  class of common stock and are included in the basic
earnings per share  calculation  using the two-class method that is described in
FASB ASC 260-10,  Earnings per Share (EPS). This pronouncement was effective for
the Company as of January 1, 2009 and did not have a material  effect on the EPS
calculation.

                                       17
<PAGE>


                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2009 and 2008


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

In April 2009, the FASB issued three  amendments to the fair value  measurement,
disclosure and other-than- temporary impairment standards:

     o    FASB ASC 820-10-65,  Determining  Fair Value When the Volume and Level
          of Activity for the Asset or Liability  Have  Significantly  Decreased
          and Identifying Transactions That Are Not Orderly
     o    FASB    ASC    320-10-65,     Recognition    and    Presentation    of
          Other-Than-Temporary Impairments
     o    FASB ASC 825-10-65,  Interim Disclosures about Fair Value of Financial
          Instruments

FASB ASC  820-10-65,  Fair Value  Measurements,  defines fair value as the price
that would be received to sell the asset or transfer the liability in an orderly
transaction  between market  participants at the measurement  date under current
market  conditions.   FASB  ASC  820-10-65  provides   additional   guidance  on
determining when the volume and level of activity for the asset or liability has
significantly decreased as well as guidance on identifying  circumstances when a
transaction may not be considered  orderly.  When the reporting entity concludes
there has been a  significant  decrease in the volume and level of activity  for
the asset or liability,  further analysis of the information from that market is
needed and  significant  adjustments  to the related  prices may be necessary to
estimate fair value in accordance with FASB ASC 820-10.

FASB ASC  320-10-65  clarifies  the  interaction  of the factors  that should be
considered when  determining  whether a debt security is  other-than-temporarily
impaired.  For debt securities,  management must assess whether,  (a) it has the
intent to sell the  security  or (b) it is more  likely than not that it will be
required to sell the security prior to its anticipated recovery. These steps are
done before  assessing  whether  the entity  will  recover the cost basis of the
investment.  Previously,  this assessment  required  management to assert it has
both  the  intent  and the  ability  to hold a  security  for a  period  of time
sufficient  to  allow  for an  anticipated  recovery  in  fair  value  to  avoid
recognizing an other-than-temporary  impairment. This change does not affect the
need to forecast recovery of the value of the security through either cash flows
or market price.

In  instances  when  a  determination  is  made  that  an   other-than-temporary
impairment exists but the investor does not intend to sell the debt security and
it is not  more  likely  than  not  that it will be  required  to sell  the debt
security  prior to its  anticipated  recovery,  FASB ASC  320-10-65  changes the
presentation and amount of the other-than-temporary impairment recognized in the
income statement. The other-than-temporary impairment is separated into: (a) the
amount of the total  other-than-temporary  impairment  related to a decrease  in
cash flows expected to be collected from the debt security (the credit loss) and
(b) the amount of the total other-than-temporary impairment related to all other
factors. The amount of the total other-than-temporary  impairment related to the
credit   loss  is   recognized   in   earnings.   The   amount   of  the   total
other-than-temporary  impairment  related to all other  factors is recognized in
other comprehensive income.

FASB  ASC  825-10-65   requires   disclosures  about  fair  value  of  financial
instruments for interim  reporting  periods of publicly traded companies as well
as in annual financial statements.

All  three  pronouncements   discussed  herein  include  substantial  additional
disclosure requirements. The three pronouncements were effective for the Company
as of June 30, 2009 did not have a significant impact to the Company's financial
statements.
                                       18

<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

             For the three months ended September 30, 2009 and 2008

10.  Fair Value of Financial Instruments
     -----------------------------------

Fair value information about financial instruments, whether or not recognized in
the balance  sheet,  for which it is practical  to estimate the value,  is based
upon the  characteristics  of the instruments  and relevant market  information.
Financial  instruments  include  cash,  evidence  of  ownership  in an entity or
contracts that convey or impose on an entity the contractual right or obligation
to either receive or deliver cash for another financial  instrument.  These fair
value estimates are based on relevant market  information and information  about
the financial  instruments.  Fair value  estimates are intended to represent the
price for which an asset could be sold or liability  could be settled.  However,
given there is no active market or observable  market  transactions  for many of
the Corporation's financial instruments,  it has made estimates of many of these
fair values which are subjective in nature, involve uncertainties and matters of
significant judgment and therefore cannot be determined with precision.  Changes
in assumptions could significantly affect the estimated values.

The following methods and assumptions were used by the Corporation in estimating
its fair value disclosures for financial instruments at September 30, 2009:

     Cash  and  cash   equivalents:   The  carrying  amounts  presented  in  the
     consolidated   statements   of  financial   condition  for  cash  and  cash
     equivalents are deemed to approximate fair value.

     Investment   and   mortgage-backed    securities:    For   investment   and
     mortgage-backed securities, fair value is deemed to equal the quoted market
     price.

     Loans  receivable:  The loan portfolio was segregated  into categories with
     similar   characteristics,   such  as   one-to   four-family   residential,
     multi-family  residential and commercial real estate. These loan categories
     were further delineated into fixed-rate and adjustable-rate loans. The fair
     values for the resultant loan  categories were computed via discounted cash
     flow analysis,  using current interest rates offered for loans with similar
     terms to  borrowers  of  similar  credit  quality.  For  loans  on  deposit
     accounts,  fair values were deemed to equal the historic  carrying  values.
     The historical  carrying  amount of accrued  interest on loans is deemed to
     approximate fair value.

     Federal  Home  Loan  Bank  stock:  The  carrying  amount  presented  in the
     consolidated  statements  of financial  condition is deemed to  approximate
     fair value.

     Deposits:  The fair value of NOW  accounts,  passbook  accounts,  and money
     market  demand  deposits  is deemed to  approximate  the amount  payable on
     demand at September 30, 2009.  Fair values for fixed-rate  certificates  of
     deposit have been estimated using a discounted cash flow calculation  using
     the interest  rates  currently  offered for  deposits of similar  remaining
     maturities.

     Advances from the Federal Home Loan Bank:  The fair value of these advances
     is  estimated  using the rates  currently  offered for similar  advances of
     similar remaining maturities or, when available, quoted market prices.

     Advances by  Borrowers  for Taxes and  Insurance:  The  carrying  amount of
     advances by borrowers for taxes and insurance is deemed to approximate fair
     value.

                                       19
<PAGE>
                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

             For the three months ended September 30, 2009 and 2008


10.  Fair Value of Financial Instruments (continued)
     -----------------------------------

Commitments to extend credit:  For fixed-rate loan  commitments,  the fair value
estimate  considers the difference  between current levels of interest rates and
committed  rates.  At September 30, 2009, the fair value of the derivative  loan
commitments was not material.

<TABLE>
<CAPTION>
                                                                               September 30, 2009
                                                                           Carrying             Fair
                                                                             Value             Value
                                                                                 (In thousands)
    Financial assets
<S>                                                                       <C>              <C>
      Cash and cash equivalents                                           $ 12,894         $ 12,894
      Investment securities                                                 49,525           49,525
      Mortgage-backed securities                                            11,222           11,320
      Loans receivable - net                                               252,090          265,952
      Federal Home Loan Bank stock                                           3,369            3,369
                                                                          --------         --------
                                                                          $329,100         $343,060
                                                                          ========         ========
    Financial liabilities
      Deposits                                                            $232,325         $232,185
      Advances from the Federal Home
        Loan Bank                                                           37,973           42,111
      Advances by borrowers for taxes
        and insurance                                                          992              992
                                                                          --------         --------
                                                                          $271,290         $275,288
                                                                          ========         ========
</TABLE>

11.  Subsequent Events
     -----------------

The Company evaluates events and transactions  occurring  subsequent to the date
of the financial  statements for matters requiring  recognition or disclosure in
the financial statements.  The accompanying financial statements consider events
through November 12, 2009.

                                       20

<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.

Recent Developments
-------------------

The  U.S.  Treasury  Department   recently  suggested   legislation  that  would
significantly  change the current bank  regulatory  system.  The proposal  would
create a new federal banking regulator, the National Bank Supervisor,  and merge
our current primary federal regulator, the Office of Thrift Supervision, as well
as the Office of the Comptroller of the Currency (the primary federal  regulator
for national banks) into the new federal bank regulator. The proposal would also
eliminate  federal savings banks and require all federal savings banks to elect,
within  six  months of the  effective  date of the  legislation,  to  convert to
either,  a national  bank,  state bank or state savings  association.  A federal
savings  bank that does not make the  election  would,  by  operation of law, be
converted  to a  national  bank  within  one year of the  effective  date of the
legislation.  Cheviot  Savings  Bank  is  an  Ohio-chartered  savings  and  loan
association, and would continue to have its Ohio charter.

Cheviot  Financial  Corp.  would  become  a  bank  holding  company  subject  to
regulation  and  supervision  by the Board of Governors  of the Federal  Reserve
System instead of the Office of Thrift  Supervision.  As a bank holding company,
Cheviot Financial Corp. may become subject to regulatory capital requirements it
is not currently be subject to as a savings and loan holding company and certain
additional  restrictions  on its  activities.  In addition,  compliance with new
regulations  and being  supervised by one or more new regulatory  agencies could
increase our expenses.

On September 29, 2009, the Federal Deposit Insurance Corporation issued a notice
of proposed  rulemaking  pursuant to which all insured  depository  institutions
would be required to prepay their  estimated  assessments for the fourth quarter
of 2009,  and for all of 2010,  2011 and 2012.  Under the  proposed  rule,  this
pre-payment  would be due on December 31, 2009.  Under the  proposed  rule,  the
assessment  rate for the  fourth  quarter of 2009 and for 2010 would be based on
each  institution's  total base  assessment  rate for the third quarter of 2009,
modified to assume that the assessment  rate in effect on September 30, 2009 had
been in effect for the entire third quarter,  and the  assessment  rate for 2011
and 2012 would be equal to the modified  third quarter  assessment  rate plus an
additional 3 basis points. In addition,  each institution's base assessment rate
for each period would be  calculated  using its third quarter  assessment  base,
adjusted quarterly for an estimated 5% annual growth rate in the assessment base
through the end of 2012.

Critical Accounting Policies
----------------------------

We consider accounting policies involving  significant judgments and assumptions
by management  that have, or could have, a material impact on the carrying value
of certain assets or on income to be critical accounting  policies.  We consider
the  accounting  method used for the  allowance for loan losses to be a critical
accounting policy.

                                       21
<PAGE>


                             Cheviot Financial Corp.

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

Critical Accounting Policies (continued)
----------------------------------------

The allowance for loan losses is the estimated  amount  considered  necessary to
cover  inherent,  but  unconfirmed  credit  losses in the loan  portfolio at the
balance  sheet date.  The  allowance is  established  through the  provision for
losses on loans which is charged  against  income.  In determining the allowance
for loan losses,  management makes significant estimates and has identified this
policy as one of the most critical for Cheviot Financial.

Management  performs a quarterly  evaluation  of the  allowance for loan losses.
Consideration  is given to a variety of factors in  establishing  this  estimate
including,  but  not  limited  to,  current  economic  conditions,   delinquency
statistics,  geographic  and  industry  concentrations,   the  adequacy  of  the
underlining  collateral,  the  financial  strength of the  borrower,  results of
internal loan reviews and other relevant factors.  This evaluation is inherently
subjective  as it  requires  material  estimates  that  may  be  susceptible  to
significant change.

The analysis has two  components,  specific  and general  allocations.  Specific
percentage  allocations can be made for unconfirmed losses related to loans that
are determined to be impaired. Impairment is measured by determining the present
value of expected future cash flows or, for collateral-dependent loans, the fair
value of the collateral adjusted for market conditions and selling expenses.  If
the fair value of the loan is less than the loan's  carrying value, a charge-off
is  recorded  for the  difference.  The  general  allocation  is  determined  by
segregating  the remaining loans by type of loan, risk weighting (if applicable)
and payment history.  We also analyze  historical loss  experience,  delinquency
trends, general economic conditions and geographic and industry  concentrations.
This  analysis  establishes  factors  that are  applied  to the loan  groups  to
determine  the  amount  of  the  general  reserve.  Actual  loan  losses  may be
significantly more than the allowances we have established which could result in
a material negative effect on our financial results.

Discussion of Financial  Condition Changes at December 31, 2008 and at September
30, 2009
--------------------------------------------------------------------------------

Total assets  increased  $10.5 million,  or 3.2%, to $342.5 million at September
30, 2009, from $332.0 million at December 31, 2008. The increase in total assets
reflects an increase in cash and cash  equivalents,  investment  securities  and
mortgage-backed  securities,  which were partially offset by a decrease in loans
receivable.

Cash, federal funds sold and  interest-earning  deposits increased $2.9 million,
or 28.8%, to $12.9 million at September 30, 2009, from $10.0 million at December
31, 2008.  The increase in cash and cash  equivalents at September 30, 2009, was
due to a $1.5 million increase in federal funds sold and a $3.0 million increase
in  interest-earning  deposits,  which was  partially  offset by a $1.6  million
decrease  in cash and due from  banks.  Investment  securities  increased  $18.6
million to $49.5 million at September  30, 2009.  At September  30, 2009,  $49.5
million of investment securities were classified as available for sale.

Mortgage-backed securities increased $3.7 million, or 48.4%, to $11.2 million at
September  30, 2009,  from $7.6  million at December  31, 2008.  The increase in
mortgage-backed  securities was due primarily  purchases of $5.3 million,  which
was  partially  offset by principal  prepayments  and  repayments  totaling $1.7
million. At September 30, 2009, $6.0 million of mortgage-backed  securities were
classified as held to maturity,  while $5.2 million were classified as available
for sale. As of September 30, 2009, none of the  mortgage-backed  securities are
considered impaired.

                                       22
<PAGE>


                             Cheviot Financial Corp.

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

Discussion of Financial  Condition Changes at December 31, 2008 and at September
30, 2009 (continued)
--------------------------------------------------------------------------------

Loans  receivable,  including loans held for sale,  decreased $16.4 million,  or
6.1%, to $252.1  million at September 30, 2009,  from $268.5 million at December
31, 2008.  The decrease  reflects  loan  originations  totaling  $61.9  million,
partially offset by loan principal  repayments of $58.7 million and sales to the
Federal Home Loan Bank of $19.4  million.  The change in the  composition of the
Corporation's  assets  reflects  management's  decision  to  take  advantage  of
opportunities  to obtain a higher  rate of return by  selling  certain  mortgage
loans and recording gains.

The allowance for loan losses totaled $1.3 million and $709,000 at September 30,
2009 and December 31, 2008,  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 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. The $390,000 increase in the provision for losses on
loans during the nine months  ended  September  30, 2009 is a reflection  of the
following  factors,  weaker economic  conditions in the greater Cincinnati area,
loan charge-offs of $187,000 and the need to allocate  approximately  $50,000 in
specific  reserves for three  residential  properties  with  principal  balances
totaling $404,000 which were acquired through  foreclosure.  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  earning.  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, 2009.

Non-performing  and  impaired  loans  totaled  $2.0  million and $1.8 million at
September 30, 2009 and December 31, 2008,  respectively.  At September 30, 2009,
non-performing and impaired loans were comprised of twenty-four loans secured by
one-to-four  family  residential  real estate and one loan secured by commercial
real estate.  At September 30, 2009 and December 31, 2008,  real estate acquired
through  foreclosure  totaled $2.4 million and $1.1 million,  respectively.  The
Corporation  has an allowance for loan losses intended to absorb losses inherent
in our loan portfolio. The allowance for loan losses represented 61.8% and 38.4%
of  non-performing  and impaired  loans at  September  30, 2009 and December 31,
2008,   respectively.   Although  management  believes  that  the  Corporation's
allowance for loan losses is adequate to absorb known and inherent losses in our
portfolio,  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  $16.3 million,  or 7.5%, to $232.3 million at September 30,
2009,  from $216.0 million at December 31, 2008.  Advances from the Federal Home
Loan Bank of Cincinnati decreased by $6.6 million, or 14.9%, to $38.0 million at
September 30, 2009, from $44.6 million at December 31, 2008.

Shareholders' equity increased $466,000,  or 0.7%, to $68.7 million at September
30,  2009,  from $68.2  million at December 31,  2008.  The  increase  primarily
resulted  from net earnings of $758,000,  an increase of $207,000 in  unrealized
gains on  securities  available  for sale and an increase in shares  acquired by
stock benefit plans of $403,000 which were partially offset by dividends paid of
$1.0  million.  At September  30,  2009,  Cheviot  Financial  had the ability to
purchase an additional 364,616 shares under its announced stock repurchase plan.

                                       23
<PAGE>


                             Cheviot Financial Corp.

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

Discussion of Financial  Condition Changes at December 31, 2008 and at September
30, 2009 (continued)
--------------------------------------------------------------------------------

Liquidity and Capital Resources
-------------------------------

We monitor our liquidity  position on a daily basis using reports that recap all
deposit activity and loan commitments. A significant portion of our deposit base
is made up of time  deposits.  At  September  30, 2009,  $107.8  million of time
deposits are due to mature within  twelve  months.  The daily  deposit  activity
report allows us to price our time deposits  competitively.  Because of this and
our deposit retention  experience,  we anticipate that a significant  portion of
maturing  time  deposits  will be retained.  At September  30, 2009, we had loan
commitments  of $589,000.  Our loan  commitments  are funded or expire within 45
days from the date of the commitment.

Borrowings from the Federal Home Loan Bank of Cincinnati  decreased $6.6 million
during the nine months ended September 30, 2009. We have the ability to increase
such borrowings by approximately  $105.2 million.  At September 30, 2009, we had
no borrowings  other than Federal Home Loan Bank of Cincinnati  borrowings.  The
additional borrowings can be used to offset any decrease in customer deposits or
to fund loan commitments.

Comparison of Operating  Results for the Nine-Month  Periods Ended September 30,
2009 and 2008
--------------------------------------------------------------------------------

General
-------

Net earnings for the nine months ended  September 30, 2009 totaled  $758,000,  a
$236,000 decrease from the $994,000 in net earnings reported for the same period
in  2008.  The  decrease  in net  earnings  reflects  an  increase  in  general,
administrative  and  other  expenses,  including  FDIC  insurance  premiums,  of
$515,000 and an increase in the provision for losses on loans of $390,000, which
were  partially  offset by an increase in net interest  income of  $330,000,  an
increase in other income of $291,000 and a decrease of $48,000 in federal income
taxes for the 2009 period.

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

Total interest income decreased $1.0 million,  or 7.4%, to $12.5 million for the
nine-months  ended  September 30, 2009,  from $13.5  million for the  comparable
period in 2008. Interest income on loans decreased  $386,000,  or 3.4%, to $11.1
million  during the 2009 period from $11.5  million  for the 2008  period.  This
decrease was due primarily to a $3.0 million,  or 1.2%,  decrease in the average
balance of loans  outstanding and a 13 basis point decrease in the average yield
on loans to 5.81 % for the 2009  period  from  5.94% for the nine  months  ended
September 30, 2008.

Interest income on mortgage-backed  securities  decreased  $27,000,  or 7.3%, to
$342,000 for the nine months ended  September  30, 2009,  from  $369,000 for the
same period in 2008,  due primarily to a 151 basis point decrease in the average
yield,  which was  partially  offset by an increase  in the  average  balance of
securities  outstanding of $2.4 million for the nine months ended  September 30,
2008  from  the  comparable  period  in  2008.  Interest  income  on  investment
securities  decreased  $544,000,  or 34.4%,  to $1.0 million for the nine months
ended September 30, 2009,  compared to $1.6 million for the same period in 2008,
due primarily to a 260 basis point decrease in the average yield to 3.15% in the
2009 period,  which was partially offset by an increase of $2.3 million, or 6.3%
in the average balance of investment securities outstanding.  Interest income on
other  interest-earning  deposits decreased $45,000, or 56.3% to $35,000 for the
nine months ended September 30, 2009, as compared to the same period in 2008.

                                       24
<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,
2009 and 2008 (continued)
--------------------------------------------------------------------------------

Interest expense  decreased $1.3 million,  or 20.5% to $5.2 million for the nine
months ended  September 30, 2009, from $6.5 million for the same period in 2008.
Interest  expense on  deposits  decreased  by $1.5  million,  or 27.7%,  to $3.8
million for the nine months ended  September 30, 2009, from $5.3 million for the
same period in 2008 due  primarily to a 101 basis point  decrease in the average
costs of deposits to 2.28% during the 2009 period, which was partially offset by
a $9.3 million, or 4.4%, increase in the average balance  outstanding.  Interest
expense on  borrowings  increased by $124,000 or 10.1%,  due primarily to a $4.0
million,  or 10.8%,  increase  in the  average  balance  outstanding,  which was
partially  offset by a 2 basis point decrease in the average cost of borrowings.
The  decrease in the average  cost of deposits  and  borrowings  reflects  lower
shorter  term  interest  rates in 2009 as  compared  to 2008,  as actions by the
Federal  Reserve to reduce  shorter term interest rates resulted in a steepening
of the yield curve and a reduction of short term and medium term interest rates.

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income increased by $330,000, or 4.7%, to $7.4 million for the nine
months ended September 30, 2009. The average  interest rate spread  increased to
2.63% for the nine  months  ended  September  30,  2009 from  2.41% for the nine
months ended September 30, 2008. The net interest margin  increased to 3.08% for
the nine months  ended  September  30, 2009 from 3.05% for the nine months ended
September 30, 2008.

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

As a result of an  analysis  of  historical  experience,  the volume and type of
lending  conducted by the Savings  Bank,  the status of past due  principal  and
interest payments, general economic conditions,  particularly as such conditions
relate to the Savings  Bank's  market  area,  and other  factors  related to the
collectability  of the Savings  Bank's  loan  portfolio,  management  recorded a
$803,000  provision for losses on loans for the nine months ended  September 30,
2009,  compared to a $413,000  provision for losses on loans for the nine months
ended  September  30,  2008.  The decision to make a larger  provision  for loan
losses  during the nine months ended  September  30, 2009, as compared to recent
periods, reflects management's assessment of the amount necessary to maintain an
adequate allowance based on our historical loss experience, changes in the local
economy,  and other external  factors.  These other external  factors,  economic
conditions and collateral value changes, have had a negative impact on all types
of  loans in the  portfolio.  There  can be no  assurance  that  the  loan  loss
allowance  will be  sufficient  to cover losses on  non-performing  loans in the
future,  however management believes they have identified all known and inherent
losses that are probable and that can be  reasonably  estimated  within the loan
portfolio,  and that the  allowance  for loan  losses is adequate to absorb such
losses.

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

Other income increased $291,000, or 80.4%, to $653,000 for the nine months ended
September  30, 2009,  compared to the same period in 2008,  due  primarily to an
increase in the gain on sale of loans of $293,000, which was partially offset by
an  increase  of  $6,000  in  loss  on sale  of  real  estate  acquired  through
foreclosure.

                                       25
<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,
2009 and 2008 (continued)
--------------------------------------------------------------------------------

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

General,  administrative and other expense increased $515,000,  or 9.3%, to $6.0
million for the nine months ended  September 30, 2009, from $5.5 million for the
comparable  period in 2008. This increase is a result of an increase of $137,000
in employee  compensation  and benefits,  a $21,000  increase in data processing
expense,  an increase of $172,000 in FDIC expense and an increase of $117,000 in
other operating expense. The increase in employee compensation and benefits is a
result of the increase in  compensation  expense as we  increased  our number of
full time equivalent  employees to accommodate  the  Corporation's  growth.  The
increase in data  processing  expense is a result of the  conversion of the core
computer  operating system in May 2009. The increase in FDIC expense is a result
of the special assessment from the FDIC of approximately  $140,000. The increase
in other  operating  expense is a result of real estate taxes,  maintenance  and
insurance expense on properties acquired through foreclosure.

FDIC Premiums
-------------

The FDIC imposed an assessment against institutions for deposit insurance.  This
assessment is based on the risk category of the institution and currently ranges
from 5 to 43 basis points of the  institution's  deposits.  Federal law requires
that the designated  reserve ratio for the deposit insurance fund be established
by the FDIC at 1.15% to 1.50% of  estimated  insured  deposits.  If this reserve
ratio drops below 1.15% or the FDIC  expects it to do so within six months,  the
FDIC  must,  within 90 days,  establish  and  implement  a plan to  restore  the
designated  reserve  ratio to 1.15% of estimated  insured  deposits  within five
years  (absent  extraordinary  circumstances).  On December 22,  2008,  the FDIC
issued final rules increasing the current  assessment rates for all institutions
by 7 basis points and up to 50 basis points for certain  financial  institutions
for the first  quarter of 2009.  It is  expected  that the FDIC will adopt a new
risk based assessment system.

In addition, the Emergency Economic Stabilization Act of 2008 (EESA) temporarily
increased the limit on FDIC insurance  coverage for deposits to $250,000 through
December 31, 2009, and the FDIC took action to provide coverage for newly-issued
senior unsecured debt and non-interest bearing transaction accounts in excess of
the $250,000 limit, for which institutions will be assessed additional premiums.

On February 27, 2009,  the FDIC announced an amendment to its  restoration  plan
for the Deposit  Insurance Fund by imposing an emergency  special  assessment on
all insured financial institutions. This special assessment of $140,000 occurred
on June 30,  2009,  and was payable by us on September  30,  2009.  In September
2009, the FDIC issued a Notice of Proposed Rulemaking that would require insured
institutions to prepay their estimated quarterly risk-based  assessments for the
fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC also adopted
a uniform three-basis point increase in assessment rates effective on January 1,
2011.   The   Corporation's   estimated   prepayment  of  FDIC   assessments  is
approximately $876,000 which would be amortized to expense over three years.

                                       26
<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,
2009 and 2008 (continued)
--------------------------------------------------------------------------------

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

The provision for federal income taxes decreased $48,000,  or 10.5%, to $410,000
for the nine months ended  September 30, 2009, from $458,000 for the same period
in 2008, due primarily to a $284,000,  or 19.6%,  decrease in pre-tax  earnings.
The  effective  tax rate was 35.1% and 31.6% for the nine  month  periods  ended
September 30, 2009 and 2008. The difference between the Corporation's  effective
tax rate in the 2009 and 2008 periods and the 34%  statutory  corporate  rate is
due  primarily  to  the  tax-exempt   earnings  on  bank-owned  life  insurance,
tax-exempt   interest  on  municipal   obligations  and  tax  benefits  for  the
contribution to the Cheviot Savings Bank Foundation  offset by the difference in
the stock compensation deduction for tax purposes.

Comparison of Operating Results for the Three-Month  Periods Ended September 30,
2009 and 2008
--------------------------------------------------------------------------------

General
-------

Net earnings for the three months ended September 30, 2009 totaled  $241,000,  a
$210,000  decrease from the $451,000 net earnings reported in the September 2008
period.  The decrease in net earnings reflects a decrease in net interest income
after the provision for losses on loans of $313,000,  which was partially offset
by an increase  of $33,000 in other  income,  a decrease of $7,000,  in general,
administrative  and other  expenses and a decrease of $63,000 in federal  income
taxes for the 2009 quarter.

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

Total interest  income  decreased  $489,000,  or 10.7%,  to $4.1 million for the
three-months  ended  September 30, 2009,  from the  comparable  quarter in 2008.
Interest income on loans decreased $345,000, or 8.8%, to $3.6 million during the
2009  quarter  from $3.9  million for the 2008  quarter.  This  decrease was due
primarily to a $13.0 million,  or 4.9%, decrease in the average balance of loans
outstanding  and by a 25 basis point  decrease in the average  yield on loans to
5.67% for the 2009 quarter from 5.92% for the three months ended  September  30,
2008.

Interest income on  mortgage-backed  securities  increased  $3,000,  or 2.8%, to
$110,000 for the three months ended  September  30, 2009,  from $107,000 for the
comparable 2008 quarter, due primarily to a $3.4 million increase in the average
balance of securities  outstanding,  which was  partially  offset by a 147 basis
point  decrease  in the  average  yield  period to  period.  Interest  income on
investment  securities  decreased $147,000,  or 27.7%, to $384,000 for the three
months ended  September  30, 2009,  compared to $531,000 for the same quarter in
2008,  due primarily to a 327 basis point decrease in the average yield to 2.85%
in the 2009 quarter, which was partially offset by an increase of $13.4 million,
or 38.5% in the average balance of investment securities  outstanding.  Interest
income on other interest-earning deposits was $10,000 for the three months ended
September 30, 2009 and 2008, respectively.

Interest  expense  decreased  $402,000,  or 20.2%, to $1.6 million for the three
months ended September 30, 2009, from $2.0 million for the same quarter in 2008.
Interest expense on deposits  decreased by $344,000,  or 22.7%, to $1.2 million,
from $1.5 million due primarily to a 83 basis point decrease in the average cost
of deposits to 2.06% during the 2009 quarter,  which was  partially  offset by a
$17.0 million,  or 8.1%, increase in the average balance  outstanding.  Interest
expense on borrowings  decreased by $58,000,  or 12.1%,  due primarily to a $6.0
million,  or 13.4%,  decrease  in the  average  balance  outstanding,  which was
partially offset by a 6 basis point increase in the average cost of borrowings.

                                       27
<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,
2009 and 2008 (continued)
--------------------------------------------------------------------------------

As a result of the foregoing  changes in interest  income and interest  expense,
net interest income decreased by $87,000, or 3.4%, to $2.5 million for the three
months ended  September 30, 2009,  as compared to the same quarter in 2008.  The
average  interest  rate spread  decreased  to 2.72% for the three  months  ended
September 30, 2009 from 2.76% for the three months ended September 30, 2008. The
net interest margin  decreased to 3.12% for the three months ended September 30,
2009 from 3.33% for the three months ended September 30, 2008.

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

Management  recorded  a  $351,000  provision  for  losses on loans for the three
months ended September 30, 2009,  compared to a $125,000 provision for losses on
loans for the three months  ended  September  30,  2008.  The decision to make a
provision  for loan losses  during the three  months  ended  September  30, 2009
reflects  the amount  necessary to maintain an adequate  allowance  based on our
historical loss experience and other external  factors.  These external factors,
economic conditions and collateral value changes,  have had a negative impact on
non-owner  occupied loans in the  portfolio.  There can be no assurance that the
loan loss allowance will be sufficient to cover losses on  non-performing  loans
in the future,  however  management  believes they have identified all known and
inherent  losses that are probable and that can be reasonably  estimated  within
the loan portfolio, and that the allowance for loan losses is adequate to absorb
such losses.

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

Other income increased $33,000, or 22.6%, to $179,000 for the three months ended
September  30, 2009,  compared to the same quarter in 2008,  due primarily to an
increase in the gain on sale of loans of $30,000.

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

General,  administrative  and other expense  decreased  $7,000, or 0.4%, for the
three months ended September 30, 2009, from the comparable  quarter in 2008, and
was $1.9 million for both  periods.  This  decrease is a result of a decrease of
$50,000 in employee compensation and benefits,  which was partially offset by an
increase in FDIC expense of $29,000.  The decrease in employee  compensation and
benefits is due  primarily  to a decrease in the health  insurance  costs of the
Corporation.  The  increase  in FDIC  expense in a result of an  increase in the
quarterly assessments.

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

The provision for federal income taxes decreased $63,000,  or 24.5%, to $194,000
for the three  months  ended  September  30,  2009,  from  $257,000 for the same
quarter in 2008,  due  primarily  to a $273,000,  or 38.6%,  decrease in pre-tax
earnings. The effective tax rate was 44.6% and 36.3% for the three month periods
ended  September 30, 2009 and 2008,  respectively.  The  difference  between the
Corporation's  effective  tax  rate in the 2009  and  2008  periods  and the 34%
statutory  corporate  rate  is due  primarily  to  the  tax-exempt  earnings  on
bank-owned life insurance, tax- exempt interest on municipal obligations and tax
benefits for the contribution to the Cheviot Savings Bank Foundation,  offset by
the difference in the stock compensation deduction for tax and book purposes.


                                       28

<PAGE>


                             Cheviot Financial Corp.

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


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, 2008.

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 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.

                                       29

<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,
2008.

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

The  Corporation  announced a repurchase plan on January 16, 2008 which provides
for the repurchase of 5% or 447,584 shares of our common stock.  As of September
30, 2009, the Corporation  had purchased  82,968 shares pursuant to the program.
During the past three months,  the  Corporation did not repurchase any shares of
its common stock.

<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>                      <C>
                  July 1-31, 2009                                 -               $-                     82,968
                  August 1-31, 2009                               -               $-                     82,968
                  September 1 - 30, 2009                          -               $-                     82,968
</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.

                                       30
<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 12, 2009              By: /s/ Thomas J. Linneman
       ----------------------              ------------------------------------
                                           Thomas J. Linneman
                                           President and Chief Executive Officer



Date:   November 12, 2009              By:  /s/ Scott T. Smith
       ----------------------               ------------------------------------
                                            Scott T. Smith
                                            Chief Financial Officer

                                       31