<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q




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



For the quarterly period ended June 30, 2008
                                       OR

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

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

                           Commission File No. 0-50358
                                               -------

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

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

1433 VAN HOUTEN AVENUE, CLIFTON, NEW JERSEY                       07015
-------------------------------------------                    ------------
(Address of Principal Executive Offices)                        (Zip Code)

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


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

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

Large Accelerated Filer |_|                      Accelerated Filer |X|

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

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

The number of shares outstanding of each of the issuer's classes of common
stock, as of August 1, 2008: 26,866,209 shares outstanding.


<PAGE>
<TABLE>
<CAPTION>
                                          CLIFTON SAVINGS BANCORP, INC.
                                                AND SUBSIDIARIES

                                                      INDEX

                                                                                                                  Page
PART I - FINANCIAL INFORMATION                                                                                   Number
                                                                                                              -------------
<S>                  <C>                                                                                        <C>
        Item 1:      Financial Statements

                     Consolidated Statements of Financial Condition (Unaudited)
                     at June 30, 2008 and March 31, 2008                                                           1

                     Consolidated Statements of Income (Unaudited) For the Three
                     Months Ended June 30, 2008 and 2007                                                           2

                     Consolidated Statements of Comprehensive Income (Unaudited) For the
                     Three Months Ended June 30, 2008 and 2007                                                     3

                     Consolidated Statements of Cash Flows (Unaudited) For the
                     Three Months Ended June 30, 2008 and 2007                                                   4 - 5

                     Notes to Consolidated Financial Statements                                                  6 - 9

        Item 2:      Management's Discussion and Analysis of
                     Financial Condition and Results of Operations                                              10 - 15

        Item 3:      Quantitative and Qualitative Disclosures About Market Risk                                 16 - 17

        Item 4:      Controls and Procedures                                                                       18


PART II - OTHER INFORMATION

         Item 1:     Legal Proceedings                                                                             19

         Item 1A:    Risk Factors                                                                                  19

         Item 2:     Unregistered Sales of Equity Securities and Use of Proceeds                                   19

         Item 3:     Defaults Upon Senior Securities                                                               20

         Item 4:     Submission of Matters to a Vote of Security Holders                                           20

         Item 5:     Other Information                                                                             20

         Item 6:     Exhibits                                                                                      20


SIGNATURES                                                                                                         21
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

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

                                                                                       June 30,            March 31,
ASSETS                                                                                   2008                2008
------                                                                             ------------------  ------------------
<S>                                                                                 <C>                  <C>
Cash and due from banks                                                             $      6,509,945     $     6,499,339
Interest-bearing deposits in other banks                                                  29,615,377          45,731,351
                                                                                   ------------------  ------------------
         Total cash and cash equivalents                                                  36,125,322          52,230,690
Securities available for sale:
      Mortgage-backed                                                                     84,678,941          90,218,624
Securities held to maturity:
      Investment, estimated fair value of $85,995,000
         and $112,086,000, respectively                                                   84,994,218         109,993,194
      Mortgage-backed, estimated fair value of $221,422,000
         and $182,686,000, respectively                                                  223,368,063         180,666,236

Loans receivable                                                                         441,292,480         422,059,272
Allowance for loan losses                                                                 (1,440,000)         (1,440,000)
                                                                                   ------------------  ------------------
         Net loans                                                                       439,852,480         420,619,272
                                                                                   ------------------  ------------------

Bank owned life insurance                                                                 21,261,743          21,033,212
Premises and equipment                                                                     8,908,214           9,000,367
Federal Home Loan Bank of New York stock                                                   8,553,000           7,536,600
Interest receivable                                                                        4,289,038           4,577,398
Other assets                                                                               3,924,167           3,180,650
                                                                                   ------------------  ------------------
         Total assets                                                               $    915,955,186     $   899,056,243
                                                                                   ==================  ==================

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
      Deposits                                                                      $    576,788,213     $   576,721,811
      Advances from Federal Home Loan Bank of New York                                   162,328,722         142,306,370
      Advance payments by borrowers for taxes and insurance                                4,698,993           4,269,117
      Other liabilities and accrued expenses                                               4,004,798           3,404,141
                                                                                   ------------------  ------------------
         Total liabilities                                                               747,820,726         726,701,439
                                                                                   ------------------  ------------------
Stockholders' equity:
      Preferred stock (par value $0.01), authorized 1,000,000
         shares; issued and outstanding - none                                                     -                   -
      Common stock (par value $0.01), authorized 75,000,000
         shares; 30,530,470 shares issued; 26,894,293 shares outstanding
         at June 30, 2008; 27,307,385 shares outstanding at
         March 31, 2008                                                                      305,305             305,305
      Paid-in capital                                                                    134,114,517         133,747,349
      Deferred compensation obligation under Rabbi Trust                                     186,642             179,055
      Retained earnings                                                                   82,271,119          81,671,543
      Treasury stock, at cost; 3,636,177 shares at June 30, 2008
         and 3,223,085 shares at March 31, 2008                                          (40,278,387)        (36,079,647)
      Common stock acquired by Employee Stock Ownership Plan                              (7,693,675)         (7,876,858)
      Accumulated other comprehensive income (loss)                                         (611,967)            532,496
      Stock held by Rabbi Trust                                                             (159,094)           (124,439)
                                                                                   ------------------  ------------------
         Total stockholders' equity                                                      168,134,460         172,354,804
                                                                                   ------------------  ------------------
         Total liabilities and stockholders' equity                                 $    915,955,186     $   899,056,243
                                                                                   ==================  ==================
</TABLE>
See notes to consolidated financial statements.


                                                   -1-


<PAGE>
<TABLE>
<CAPTION>

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

                                                                               Three Months Ended June 30,
                                                                        ------------------------------------------
Interest income:                                                              2008                    2007
                                                                        ------------------      ------------------
<S>                                                                       <C>                     <C>
     Loans                                                                $     5,623,995         $     5,445,493
     Mortgage-backed securities                                                 3,607,370               1,666,144
     Investment securities                                                      1,230,186               1,796,308
     Other interest-earning assets                                                305,713                 451,384
                                                                        ------------------      ------------------
              Total interest income                                            10,767,264               9,359,329
                                                                        ------------------      ------------------
Interest expense:
     Deposits                                                                   5,143,048               5,381,155
     Advances                                                                   1,427,946                 415,331
                                                                        ------------------      ------------------
              Total interest expense                                            6,570,994               5,796,486
                                                                        ------------------      ------------------

Net interest income                                                             4,196,270               3,562,843
Provision for loan losses                                                               -                       -
                                                                        ------------------      ------------------
Net interest income after provision for loan losses                             4,196,270               3,562,843
                                                                        ------------------      ------------------

Non-interest income:
     Fees and service charges                                                      51,447                  44,994
     Bank owned life insurance                                                    228,531                 223,160
     Other                                                                         10,454                   4,550
                                                                        ------------------      ------------------
              Total non-interest income                                           290,432                 272,704
                                                                        ------------------      ------------------

Non-interest expenses:
     Salaries and employee benefits                                             1,699,890               1,825,643
     Net occupancy expense of premises                                            236,817                 241,708
     Equipment                                                                    218,476                 218,319
     Directors' compensation                                                      244,558                 265,411
     Legal                                                                         59,741                  62,874
     Advertising                                                                   86,479                  71,183
     Federal insurance premium                                                     16,213                  18,045
     Other                                                                        292,301                 392,177
                                                                        ------------------      ------------------
              Total non-interest expenses                                       2,854,475               3,095,360
                                                                        ------------------      ------------------

Income before income taxes                                                      1,632,227                 740,187
Income taxes                                                                      500,000                 178,000
                                                                        ------------------      ------------------
Net income                                                                $     1,132,227         $       562,187
                                                                        ==================      ==================

Basic earnings per share                                                  $          0.04         $          0.02
                                                                        ==================      ==================
Diluted earnings per share                                                $          0.04         $          0.02
                                                                        ==================      ==================

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

Weighted average number of common shares and common stock equivalents
  outstanding:
     Basic                                                                     26,137,127              27,427,388
                                                                        ==================      ==================
     Diluted                                                                   26,184,002              27,648,526
                                                                        ==================      ==================

</TABLE>
See notes to consolidated financial statements.

                                                        -2-
<PAGE>
<TABLE>
<CAPTION>

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


                                                                                Three Months Ended June 30,
                                                                             ----------------------------------
                                                                                  2008              2007
                                                                             ----------------  ----------------
<S>                                                                            <C>                <C>
Net income                                                                     $   1,132,227      $    562,187
                                                                             ----------------  ----------------
Other comprehensive income (loss), net of income tax (benefit):
     Gross unrealized holding (loss) on securities available for sale,
       net of income tax benefit of $776,579 and $292,443, respectively           (1,167,785)         (439,763)
     Benefit plans, net of income taxes of $7,755 and $7,575, respectively            11,661            11,390
                                                                             ----------------  ----------------
Other comprehensive (loss)                                                        (1,156,124)         (428,373)
                                                                             ----------------  ----------------
Comprehensive (loss) income                                                    $     (23,897)     $    133,814
                                                                             ================  ================
</TABLE>









See notes to consolidated financial statements.


                                                      -3-

<PAGE>
<TABLE>
<CAPTION>

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

                                                                                           Three Months Ended June 30,
                                                                                        ----------------------------------
                                                                                             2008              2007
                                                                                        ----------------  ----------------
<S>                                                                                         <C>                 <C>
Cash flows from operating activities:
     Net income                                                                             $ 1,132,227         $ 562,187
     Adjustments to reconcile net income to net cash provided by operating activities:
        Depreciation and amortization of premises and equipment                                 114,196           150,118
        Net amortization of deferred fees and costs, premiums and discounts                      34,709           154,004
        Amortization component of net periodic benefit cost                                      19,416            18,965
        Decrease in interest receivable                                                         288,360           272,204
        Deferred income tax benefit                                                            (241,201)         (237,022)
        Decrease in other assets                                                                289,725           173,593
        Increase (decrease) in accrued interest payable                                          46,440           (18,734)
        Increase (decrease) in other liabilities                                                496,088          (658,010)
        (Increase) in cash surrender value of bank owned life insurance                        (228,531)         (223,160)
        ESOP shares committed to be released                                                    185,320           215,912
        Restricted stock expense                                                                265,567           266,180
        Stock option expense                                                                     92,104           171,050
        Increase in deferred compensation obligation under Rabbi Trust                            7,587             8,738
                                                                                        ----------------  ----------------
           Net cash provided by operating activities                                          2,502,007           856,025
                                                                                        ----------------  ----------------

Cash flows from investing activities: Proceeds from calls, maturities and
     repayments of:
        Investment securities available for sale                                                      -         5,000,000
        Mortgage-backed securities available for sale                                         3,604,361         2,374,210
        Investment securities held to maturity                                               25,000,000        20,000,000
        Mortgage-backed securities held to maturity                                           8,553,583         8,945,903
     Redemptions of Federal Home Loan Bank of New York stock                                    224,000           219,500
     Purchases of:
        Investment securities held to maturity                                                        -        (5,000,000)
        Mortgage-backed securities held to maturity                                         (51,273,961)      (29,742,997)
        Loans receivable                                                                              -        (5,461,010)
        Premises and equipment                                                                  (22,043)       (1,079,387)
        Federal Home Loan Bank of New York stock                                             (1,240,400)                -
     Net change in loans receivable                                                         (19,259,432)        8,087,005
                                                                                        ----------------  ----------------
           Net cash (used in) provided by investing activities                              (34,413,892)        3,343,224
                                                                                        ----------------  ----------------
</TABLE>



See notes to consolidated financial statements.

                                                       -4-

<PAGE>
<TABLE>
<CAPTION>


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



                                                                                           Three Months Ended June 30,
                                                                                        ----------------------------------
                                                                                             2008              2007
                                                                                        ----------------  ----------------
<S>                                                                                       <C>               <C>
Cash flows from financing activities:
     Net increase in deposits                                                             $      66,402     $   3,987,114
     Proceeds from advances from Federal Home Loan Bank of New York                          25,000,000                 -
     Principal payments on advances from Federal Home Loan Bank of New York                  (4,977,648)       (3,904,339)
     Net increase in payments by borrowers for taxes and insurance                              429,876           221,673
     Dividends paid                                                                            (486,078)         (547,536)
     Purchase of treasury stock                                                              (4,230,186)       (3,933,044)
     Tax benefit from stock based compensation                                                    4,151            20,940
                                                                                        ----------------  ----------------
           Net cash provided by (used in ) financing activities                              15,806,517        (4,155,192)
                                                                                        ----------------  ----------------

Net (decrease) increase in cash and cash equivalents                                        (16,105,368)            6,127
Cash and cash equivalents - beginning                                                        52,230,690        41,105,229
                                                                                        ----------------  ----------------
Cash and cash equivalents - ending                                                        $  36,125,322     $  41,111,356
                                                                                        ================  ================
Supplemental information:
     Cash paid during the period for:
        Interest on deposits and borrowings                                               $   6,524,554     $   5,815,220
                                                                                        ================  ================
        Income taxes paid, net of refunds                                                 $     231,642     $     722,590
                                                                                        ================  ================

</TABLE>


See notes to consolidated financial statements.

                                                    -5-


<PAGE>


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


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

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

On September 12, 2007, the Bank converted from a New Jersey chartered savings
and loan association to a federally chartered savings bank. In connection with
the charter conversion, the Bank changed its name to "Clifton Savings Bank."
Clifton MHC, the Company and the Bank will continue to be subject to supervision
and examination by the Office of Thrift Supervision ("OTS"). The Bank's deposits
are insured by the Federal Deposit Insurance Corporation ("FDIC").


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

The accompanying unaudited consolidated financial statements were prepared in
accordance with the instructions for Form 10-Q and Regulation S-X and do not
include information or footnotes necessary for a complete presentation of
financial condition, results of operations, or cash flows in conformity with
generally accepted accounting principles. However, in the opinion of management,
all adjustments (consisting of normal recurring adjustments) necessary for a
fair presentation of the consolidated financial statements have been included.
The results of operations for the three month period ended June 30, 2008 are not
necessarily indicative of the results which may be expected for the entire
fiscal year. These consolidated financial statements should be read in
conjunction with the Company's audited consolidated financial statements and
related notes thereto for the year ended March 31, 2008, which are included in
the Company's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission on June 13, 2008.


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

Basic EPS is based on the weighted average number of common shares actually
outstanding, and is adjusted for Employee Stock Ownership Plan ("ESOP") shares
not yet committed to be released, unvested restricted stock awards and deferred
compensation obligations required to be settled in shares of Company stock.
Diluted EPS reflects the potential dilution that could occur if securities or
other contracts to issue common stock, such as unvested restricted stock awards
and outstanding stock options, were exercised or converted into common stock or
resulted in the issuance of common stock that then shared in the earnings of the
Company. Diluted EPS is calculated by adjusting the weighted average number of
shares of common stock outstanding to include the effect of contracts or
securities exercisable (such as stock awards and options) or which could be
converted into common stock, if dilutive, using the treasury stock method. The
calculation of diluted EPS for the three months ended June 30, 2008 and 2007,
include incremental shares related to outstanding stock options and unvested
restricted stock awards of -0- and 46,875 and 151,161 and 66,285, respectively.
Shares issued and reacquired during any period are weighted for the portion of
the period they were outstanding.

                                      -6-

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

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

During the three months ended June 30, 2008 and 2007, Clifton MHC ("MHC"), the
federally chartered mutual holding company of the Company, waived its right,
upon non-objection from the OTS, to receive cash dividends of approximately
$840,000 on the shares of Company common stock it owned in each year.


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

On May 14, 2008, the Company's Board of Directors authorized the Company's
seventh repurchase plan for up to 525,000 shares of the Company's outstanding
stock, representing approximately 5% of the outstanding shares owned by entities
other than the MHC. At of June 30, 2008, 416,148 shares were purchased at a
total cost of approximately $4.2 million or $10.17 per share.


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

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

                                                Three Months Ended June 30,
                                              ---------------------------------
                                                   2008              2007
                                              ---------------   ---------------
                                                       (In Thousands)

Service cost                                    $        22      $         20
Interest cost                                            36                34
Amortization of past service cost                        22                22
Amortization of unrecognized net (gain)                  (2)               (3)
                                              --------------   ---------------

Net periodic benefit cost                       $        78      $         73
                                              ==============   ===============


7. FAIR VALUE OF FINANCIAL INSTRUMENTS
--------------------------------------

The Company adopted Statement of Financial Accounting Standards ("SFAS") No.157,
"Fair Value Measurements", on April 1, 2008. Under SFAS No. 157, fair value
measurements are not adjusted for transaction costs. SFAS No. 157 establishes a
fair value hierarchy that prioritizes the inputs to valuation techniques used to
measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (level 1
measurements) and the lowest priority to unobservable inputs (level 3
measurements). The three levels of the fair value hierarchy under SFAS No. 157
are described below:

Basis of Fair Value Measurement:

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


                                      -7-

<PAGE>

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

7. FAIR VALUE OF FINANCIAL INSTRUMENTS (CON'T)
----------------------------------------------

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

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

A financial instrument's level within the fair value hierarchy is based on the
lowest level of input that is significant to the fair value measurement.

The Company's cash instruments are generally classified within level 1 or level
2 of the fair value hierarchy because they are valued using quoted market
prices, broker or dealer quotations, or alternative pricing sources with
reasonable levels of price transparency.

The types of instruments valued based on quoted market prices in active markets
include most U.S. government and agency securities, mortgage-backed securities,
many other sovereign government obligations, and active listed securities. Such
instruments are generally classified within level 1 or level 2 of the fair value
hierarchy. As required by SFAS No. 157, the Company does not adjust the quoted
price for such instruments.

The type of instruments valued based on quoted prices in markets that are not
active, broker or dealer quotations, or alternative pricing sources with
reasonable levels or price transparency include less liquid mortgage products,
less liquid equities, and state municipal and provincial obligations. Such
instruments are generally classified within level 2 of the fair value hierarchy.

The following table sets for the Company's financial assets that were accounted
for at fair values as of June 30, 2008 by level within the fair value hierarchy.
As required by SFAS No. 157, financial assets are classified in their entirety
based on the lowest level of input that is significant to the fair value
measurements:
<TABLE>
<CAPTION>
                                                              (LEVEL 1)          (LEVEL 2)
                                             JUNE 30,       QUOTED PRICES       SIGNIFICANT        (LEVEL 3)
                                              2008            IN ACTIVE            OTHER          SIGNIFICANT
                                             CARRYING        MARKETS FOR         OBSERVABLE        UNOBSERVABLE
                                              VALUE         IDENTICAL ASSETS      INPUTS             INPUTS
                                          -------------    ------------------ --------------     --------------
                                                                   (In Thousands)
Assets:
<S>                                          <C>               <C>               <C>                  <C>
Securities available for sale                $84,679           $    -            $ 84,679             $   -
</TABLE>


8. EMPLOYERS' ACCOUNTING FOR DEFINED BENEFIT PENSION AND OTHER POSTRETIREMENT
-----------------------------------------------------------------------------
PLANS
-----

On April 1, 2008, the Company adopted the measurement date provisions of SFAS
No. 158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans" - an Amendment of FASB Nos. 87, 88,106 and 132 (R). SFAS
No. 158 requires that the funded status of a defined benefit postretirement plan
be measured as of the entity's fiscal year-end rather than as of an earlier
date. As a result, the Company changed the measurement date from January 1 to
March 31 for its defined benefit plans. This adoption on April 1, 2008 resulted
in adjustments of approximately $46,000 to the Company's retained earnings and
$12,000 to other comprehensive income.

                                      -8-

<PAGE>

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


9. RECENT ACCOUNTING PRONOUNCEMENTS
-----------------------------------

In March 2007, The Financial Accounting Standards Board ("FASB") ratified
Emerging Issues Task Force ("EITF") Issue No. 06-11, "Accounting for Income Tax
Benefits of Dividends on Share-Based Payment Awards." EITF 06-11 requires
companies to recognize the income tax benefit realized from dividends or
dividend equivalents that are charged to retained earnings and paid to employees
for nonvested equity-classified employee share-based payment awards as an
increase to additional paid-in capital. EITF 06-11 is effective for fiscal years
beginning after September 15, 2007. The adoption of EITF 06-11 did not have a
material impact on the Company's consolidated financial position, results of
operations and cash flows.

Staff Accounting Bulletin No. 110 (SAB 110) amends and replaces Question 6 of
Section D.2 of Topic 14, "Share-Based Payment," of the Staff Accounting Bulletin
series. Question 6 of Section D.2 of Topic 14 expresses the views of the staff
regarding the use of the "simplified" method in developing an estimate of the
expected term of "plain vanilla" share options and allows usage of the
"simplified" method for share option grants prior to December 31, 2007. SAB 110
allows public companies which do not have historically sufficient experience to
provide a reasonable estimate to continue use of the "simplified" method for
estimating the expected term of "plain vanilla" share option grants after
December 31, 2007. SAB 110 was effective January 1, 2008. The adoption of SAB
110 did not have a material impact on the Company's consolidated financial
position, results of operations and cash flows as the Company utilizes the
simplified method.

In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted
Accounting Principles." This Statement identifies the sources of accounting
principles and the framework for selecting the principles used in the
preparation of financial statements. This Statement is effective 60 days
following the SEC's approval of the Public Company Accounting Oversight Board
amendments to AU Section 411, "The Meaning of Present Fairly in Conformity with
Generally Accepted Accounting Principles." The Company is currently evaluating
the potential impact the new pronouncement will have on its consolidated
financial statements.

In June 2008, the FASB issued FASB Staff Position (FSP) EITF 03-6-1,
"Determining Whether Instruments Granted in Share-Based Payment Transactions Are
Participating Securities." This FSP clarifies that all outstanding unvested
share-based payment awards that contain rights to nonforfeitable dividends
participate in undistributed earnings with common shareholders. Awards of this
nature are considered participating securities and the two-class method of
computing basic and diluted earnings per share must be applied. This FSP is
effective for fiscal years beginning after December 15, 2008. The Company is
currently evaluating the potential impact the new pronouncement will have on its
consolidated financial statements.



                                      -9-

<PAGE>

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


FORWARD-LOOKING STATEMENTS

This Form 10-Q may include certain forward-looking statements based on current
management expectations. The Company's actual results could differ materially
from those management expectations. Factors that could cause future results to
vary from current management expectations include, but are not limited to,
general economic conditions, legislative and regulatory changes, monetary and
fiscal policies of the federal government, changes in tax policies, rates and
regulations of federal, state and local tax authorities, changes in interest
rates, deposit flows, the cost of funds, demand for loan products, demand for
financial services, competition, changes in the quality or composition of loan
and investment portfolios, changes in accounting principles, policies or
guidelines, and other economic, competitive, governmental and technological
factors affecting the Company's operations, markets, products, services and
prices. Further description of the risks and uncertainties to the business are
included in the Company's other filings with the Securities and Exchange
Commission.


OVERVIEW OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

Interest-earning assets consist primarily of investment and mortgage-backed
securities and loans which comprised 42.9% and 48.0%, respectively, of total
assets at June 30, 2008, as compared to 42.4% and 46.8%, respectively, at March
31, 2008. Cash and cash equivalents decreased to 3.9% of total assets at June
30, 2008, as compared to 5.8% at March 31, 2008.

Interest-bearing liabilities consist of deposits and borrowings from the Federal
Home Loan Bank of New York ("FHLB"). Deposits increased $66,000, or .0.01%
between March 31, 2008 and June 30, 2008, and borrowed funds increased by $20.0
million, or 14.1%. The balance in borrowed funds was $162.3 million at June 30,
2008 as compared to $142.3 million at March 31, 2008. During the three months
ended June 30, 2008, $25.0 million in long-term borrowings with an average rate
of 3.77% were originated, while $5.0 million of long-term borrowings were repaid
in accordance with their original terms.

Net interest income increased $640,000, or 18.0%, during the three months ended
June 30, 2008, when compared with the same 2007 period. Such increase was due to
a $1.41 million increase in total interest income which was partially offset by
an increase in total interest expense of $775,000. Average interest-earning
assets increased $99.0 million, or 13.1%, while average interest-bearing
liabilities increased $112.0 million, or 18.5%. The $13.0 million decrease in
average net interest-earning assets was mainly attributable to a reduction in
the average balance of interest-earning investment securities. The interest rate
spread increased 25 basis points to 1.37% from 1.12%. This was due to an
increase of 9 basis points in the yield earned on interest-earning assets
coupled with a 16 basis points decrease in the cost of interest-bearing
liabilities.


                                      -10-

<PAGE>

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


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

Results of operations also depend, to a lesser extent, on non-interest income
generated, provision for loan losses recorded, and non-interest expense
incurred. During the three months ended June 30, 2008, non-interest income
increased $17,000, or 6.2%. The provision for loan losses was $0 for both
periods, and non-interest expense decreased $241,000, or 7.8%.


CHANGES IN FINANCIAL CONDITION

The Company's assets at June 30, 2008 totaled $916.0 million, which represents
an increase of $16.9 million or 1.9% as compared with $899.1 million at March
31, 2008.

Cash and cash equivalents decreased $16.1 million, or 30.8% to $36.1 million at
June 30, 2008 as compared to $52.2 million at March 31, 2008. This decrease
resulted primarily from cash being redeployed into higher yielding
mortgage-backed securities and loans.

Securities available for sale at June 30, 2008 decreased $5.5 million, or 6.1%
to $84.7 million when compared with $90.2 million at March 31, 2008. The
decrease during the three months ended June 30, 2008, resulted primarily from
maturities and repayments totaling $3.6 million and an increase in unrealized
losses of $1.9 million on the portfolio.

Securities held to maturity at June 30, 2008 increased $17.7 million or 6.1% to
$308.4 million when compared with $290.7 million at March 31, 2008. The increase
during the three months ended June 30, 2008, resulted primarily from purchases
of securities totaling $51.3 million<184> partially offset by maturities, calls
and repayments totaling $33.6 million.

Net loans at June 30, 2008 increased $19.3 million, or 4.6% to $439.9 million
when compared with $420.6 million at March 31, 2008. The increase during the
three months ended June 30, 2008, resulted primarily from internal origination
volume, primarily in residential real estate, which more than offset repayment
levels. The largest increase in the loan portfolio was in one-to-four family
residential real estate loans which increased $17.1 million, or 4.4%.

Total liabilities increased $21.1 million, or 2.9% to $747.8 million at June 30,
2008 from $726.7 million at March 31, 2008. Deposits at June 30, 2008 increased
$66,000, or 0.01% to $576.8 million when compared with $576.7 million at March
31, 2008. Borrowings increased $20.0 million, or 14.1% to $162.3 million at June
30, 2008, as compared with $142.3 million at March 31, 2008. During the period
ending June 30, 2008, $25.0 million in long-term borrowings with an average rate
of 3.77% were originated, as part of leverage strategy, while $5.0 million of
long-term borrowings were repaid in accordance with their original terms. At
June 30, 2008, the remaining borrowings of $162.3 million had an average
interest rate of 3.86%.


                                      -11-
<PAGE>


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


CHANGES IN FINANCIAL CONDITION (CONT'D)

Stockholders' equity totaled $168.1 million and $172.4 million at June 30, 2008
and March 31, 2008, respectively. The decrease of $4.3 million, or 2.5%, for the
three months ended June 30, 2008, resulted primarily from the repurchase of
approximately 416,000 shares of Company common stock for $4.2 million, cash
dividends paid of $486,000, and a net increase in unrealized losses of $1.2
million on the available for sale securities portfolios, partially offset by net
income of $1.1 million, ESOP shares committed to be released of $185,000, and
$362,000 for stock options and awards earned under the Company's 2005 Equity
Incentive Plan and related tax benefits.


COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND
2007

Net income increased $570,000 or 101.4% to $1.13 million for the three months
ended June 30, 2008 compared with $562,000 for the same 2007 period. The
increase in net income during the 2008 period resulted primarily as a result of
an increase in the net interest rate spread and a reduction of non-interest
expense, as well as continued favorable trends in loan production and asset
quality.

Interest income on loans increased by $170,000, or 3.1% to $5.62 million during
the three months ended June 30, 2008, when compared with $5.45 million for the
same 2007 period. The increase during the 2008 period resulted from an increase
in the yield earned on the loan portfolio of 3 basis points to 5.24% from 5.21%,
coupled with an increase in the average balance of $10.8 million, or 2.6% when
compared to the same period in 2007. Interest on mortgage-backed securities
increased $1.94 million or 116.2% to $3.61 million during the three months ended
June 30, 2008, when compared with $1.67 million for the same 2007 period. The
increase during the 2008 period resulted from an increase of 57 basis points in
the yield earned on mortgage-backed securities to 5.13% from 4.56%, coupled with
an increase of $135.3 million, or 92.6% in the average balance of
mortgage-backed securities outstanding. The average yields on loans and
securities increased as a result of the increasing long-term rate environment.
Interest earned on investment securities decreased by $570,000, or 31.7% to
$1.23 million during the three months ended June 30, 2008, when compared to
$1.80 million during the same 2007 period, due to a decrease in the average
balance by $57.5 million, or 36.5%, partially offset by a 36 basis point
increase in yield to 4.92% from 4.56%. Interest earned on other interest-earning
assets decreased by $145,000, or 32.2% to $306,000 during the three months ended
June 30, 2008, when compared to $451,000 during the same 2007 period primarily
due to a decrease of 239 basis points in yield to 2.65% from 5.04%, partially
offset by an increase of $10.4 million, or 29.2%, in the average balance.
Investment securities decreased primarily due to the redeployment of maturities
of investment securities and cash and cash equivalents into higher yielding
loans and mortgage-backed securities. Other interest-earning assets increased
due to calls of investment securities during the 2008 period.

Interest expense on deposits decreased $240,000, or 4.5% to $5.14 million during
the three months ended June 30, 2008, when compared to $5.38 million during the
same 2007 period. Such decrease was primarily attributable to a decrease of 23
basis points in the cost of interest-bearing deposits to 3.59% from 3.82%,
partially offset by an increase of $9.3 million, or 1.7% in the average balance
of interest-bearing deposits. Interest expense on borrowed money increased
approximately $1.0 million, or 244.1% to $1.43 million during the three months
ended June 30, 2008 when compared with $415,000 during the same 2007 period.
Such increase was primarily attributable to an increase of $102.7 million, or
236.6% in the average balance of borrowings, coupled with an increase of 8 basis
points in the cost of borrowings to 3.91% from 3.83%.


                                      -12-
<PAGE>


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


COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND
2007 (CONT'D.)

Net interest income increased $640,000, or 18.0% during the three months ended
June 30, 2008, to $4.20 million when compared to $3.56 million for the same 2007
period. Such increase was due to a $1.41 million increase in total interest
income which more than offset an increase in total interest expense of $775,000.
Average interest-earning assets increased $99.0 million, or 13.1% while average
interest-bearing liabilities increased $112.0 million, or 18.5%. The $99.0
million increase in average interest-earning assets was mainly attributable to
an increase of $10.8 million in loans, $135.3 million in mortgage-backed
securities and $10.4 million in other interest-earning assets, partially offset
by a decrease of $57.5 million in investment securities. Loans and
mortgage-backed securities increased primarily due to the redeployment of
maturities and calls of investment securities into higher yielding assets. In
addition, mortgage-backed securities increased due to the implementation of a
leverage strategy initiated in November 2007, under which we borrow funds from
the Federal Home Loan Bank of New York and simultaneously invest those funds in
higher yielding mortgage-backed securities. Other interest-earning assets
increased due to the calls of two securities on June 30, 2008 that had not yet
been redeployed into higher yielding assets. The $112.0 million increase in
average interest-bearing liabilities consisted of increases of $9.3 million in
interest-bearing deposits and $102.7 million in borrowings. The net interest
rate spread increased 25 basis points as a 9 basis points increase in average
yield earned on interest-earning assets was coupled with a decrease of 16 basis
points in the average rate paid on interest-bearing liabilities.

During the three months ended June 30, 2008 and 2007, the Bank recorded no
provision for loan losses. The allowance for loan losses is based on
management's evaluation of the risk inherent in the Bank's loan portfolio and
gives due consideration to the changes in general market conditions and in the
nature and volume of the Bank's loan activity. The Bank intends to continue to
evaluate the need for a provision for loan losses based on its periodic review
of the loan portfolio and general market conditions. At June 30, 2008 and March
31, 2008, the Bank's non-performing loans, which were delinquent ninety days or
more, totaled $270,000 and $265,000 respectively, remaining at 0.06% to total
gross loans and 0.03% to total assets at both period ends. During the three
months ended June 30, 2008 and 2007, the Bank did not charge off any loans. The
allowance for loan losses amounted to $1.44 million at both June 30, and March
31, 2008, representing 0.33% of total loans at June 30, 2008 and 0.34% of total
loans at March 31, 2008.

Non-interest income increased $17,000, or 6.2% to $290,000 during the three
months ended June 30, 2008 as compared to $273,000 for the same 2007 period.

Non-interest expense decreased by $250,000, or 8.1% to $2.85 million during the
three months ended June 30, 2008, when compared with $3.10 million during the
same 2007 period. The components of non-interest expense which experienced the
most significant change were salaries and employee benefits and miscellaneous
expenses, which decreased by $126,000, or 6.9%, and $100,000, or 25.5%,
respectively. Salaries and employee benefits were lower during the three months
ended June 30, 2008 due to the decrease in stock option, ESOP and health
insurance expenses while the decrease in miscellaneous expenses was mostly due
to a $49,000 recovery of previously expensed consulting fees, and a $21,000
decrease in State of New Jersey supervisory fees. The Bank converted form a New
Jersey chartered savings and loan association to a federally chartered savings
bank in September 2007.

Income taxes totaled $500,000 and $178,000 during the three months ended June
30, 2008 and 2007, respectively. The increase of $322,000 or 180.9% during the
2008 period resulted from higher pre-tax income, coupled with an increase in the
overall effective income tax rate which was 30.6% in the 2008 period, compared
with 24.0% for 2007.

                                      -13-

<PAGE>

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


LIQUIDITY AND CAPITAL RESOURCES

The Company maintains levels of liquid assets sufficient to ensure the Bank's
safe and sound operation. The Company adjusts its liquidity levels in order to
meet funding needs for deposit outflows, payment of real estate taxes from
escrow accounts on mortgage loans, repayment of borrowings, when applicable, and
loan funding commitments. The Company also adjusts its liquidity level as
appropriate to meet its asset/liability objectives. Liquid assets, which include
cash and cash equivalents and securities available for sale, totaled $120.8
million, or 13.2% of total assets at June 30, 2008 as compared to $142.4
million, or 15.8% of total assets at March 31, 2008.

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

Cash was generated by operating and financing activities during the three months
ended June 30, 2008. The primary source of cash was net income and the proceeds
from advances from the FHLB. The Company declared and paid a cash dividend
during the three months ended June 30, 2008, totaling $486,000.

The primary uses of investing activity are lending and the purchases of
securities. Net loans amounted to $439.9 million and $420.6 million at June 30,
2008 and March 31, 2008, respectively. Securities, including available for sale
and held to maturity issues, totaled $393.0 million and $380.9 million at June
30, 2008 and March 31, 2008, respectively. In addition to funding new loan
production through operating and financing activities, such activities were
funded by principal repayments and maturities on existing loans and securities.

Liquidity management is both a daily and long-term function of business
management. Excess liquidity is generally invested in short-term investments,
such as interest-bearing deposits. If the Bank requires funds beyond its ability
to generate them internally, the Bank can borrow funds from the FHLB up to
approximately $78.5 million under an overnight line of credit and $78.5 million
under a one-month overnight repricing line of credit agreement. The Bank's
membership in FHLB also provides access to additional sources of borrowed funds
based on the Bank's ability to collateralize such borrowings. At June 30, 2008,
advances from the FHLB amounted to $162.3 million at a weighted average rate of
3.86%.

The Bank anticipates that it will have sufficient funds available to meet its
current commitments. At June 30, 2008, the Bank had outstanding commitments to
originate loans, and fund customers' approved unused equity lines of credit,
aggregating $19.0 million. At June 30, 2008, the Bank also had outstanding
commitments to purchase a $750,000 participation in a $5.8 million construction
loan, and a $750,000 participation in a $7.3 million construction loan with
adjustable interest rates of 3.00% and 2.50%, respectively, over the one month
London Interbank Offering Rate.

Certificates of deposit scheduled to mature in one year or less at June 30,
2008, totaled $308.1 million, or 71.7% of our certificates of deposit.
Management believes that, based upon its experience and the Bank's deposit flow
history, a significant portion of such deposits will remain with the Bank. FHLB
advances scheduled to mature in one year or less at June 30, 2008, totaled $20.1
million.


                                      -14-

<PAGE>

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


LIQUIDITY AND CAPITAL RESOURCES (CONT'D)

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

The following table sets forth the Bank's capital position at June 30, 2008, as
compared to the minimum regulatory capital requirements:

<TABLE>
<CAPTION>
                                                                                         OTS Requirements
                                                                      ------------------------------------------------------
                                                                           Minimum Capital          For Classification as
                                                  Actual                      Adequacy                 Well-Capitalized
                                        --------------------------    --------------------------   -------------------------
                                            Amount        Ratio          Amount         Ratio         Amount        Ratio
                                        ---------------  ---------    -------------   ----------   -------------  ----------
                                                                       (Dollars In Thousands)
     <S>                                      <C>           <C>            <C>             <C>          <C>           <C>
     Total capital
        (to risk-weighted assets)             $143,447      41.72 %        $27,505         8.00 %       $34,381       10.00 %
     Tier 1 capital
        (to risk-weighted assets)              142,007      41.30           13,753         4.00          20,629        6.00
     Core (tier 1) capital
        (to adjusted total assets)             142,007      15.65           36,289         4.00          45,361        5.00
     Tangible capital
        (to adjusted tangible assets)          142,007      15.65           13,608         1.50               -           -
</TABLE>

In April 2008, the Bank received approval from the OTS for a $7,950,000 capital
distribution to the Company. This cash dividend was paid in May 2008.




                                      -15-

<PAGE>

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


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

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

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





                                      -16-

<PAGE>


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


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

The NPV ratio, under any interest rate scenario, is defined as the NPV in that
scenario divided by the market value of assets in the same scenario. The OTS
produces its analysis based upon data submitted on the Bank's quarterly Thrift
Financial Report. The following table sets forth the Bank's NPV as of March 31,
2008, the most recent date the Bank's NPV was calculated by the OTS. The Bank
expects that its NPV as of June 30, 2008 is consistent with the table below.

<TABLE>
<CAPTION>

                                                                          Net Portfolio Value as % of
 Basis Points ("bp")                 Net Portfolio Value                    Present Value of Assets
                        ----------------------------------------------  -------------------------------------
   Change in Rates         $ Amount        $ Change        % Change        NPV Ratio           Change
----------------------  ---------------- -------------  --------------  ----------------  -------------------
                                            (Dollars in Thousands)
         <S>                  <C>           <C>               <C>             <C>                  <C>
         300 bp               $ 106,341     $ (44,225)        (29)%           12.69 %              (392)bp
                        ---------------- -------------  --------------  ----------------  -------------------
         200                    123,313       (27,254)        (18)            14.30                (231)
                        ---------------- -------------  --------------  ----------------  -------------------
         100                    138,672       (11,895)         (8)            15.65                 (96)
                        ---------------- -------------  --------------  ----------------  -------------------
         50                     145,564        (5,002)         (3)            16.22                 (38)
                        ---------------- -------------  --------------  ----------------  -------------------
          0                     150,567             -           -             16.61                   -
                        ---------------- -------------  --------------  ----------------  -------------------
        (50)                    153,828         3,261         + 2             16.82                 +21
                        ---------------- -------------  --------------  ----------------  -------------------
        (100)                   155,228         4,661         + 3             16.86                 +25
                        ---------------- -------------  --------------  ----------------  -------------------
</TABLE>

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


                                      -17-


<PAGE>

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


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

                  CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING. There
         were no changes in the Company's internal control over financial
         reporting that occurred during the three months ended June 30, 2008
         that have materially affected, or are reasonably likely to materially
         affect, the Company's internal control over financial reporting.





                                      -18-

<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     PART II


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

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


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

         In addition to the other information set forth in this report, you
         should carefully consider the factors discussed in Part I, "Item 1A.
         Risk Factors" in our Annual Report on Form 10-K for the year ended
         March 31, 2008, as filed with Securities and Exchange Commission on
         June 13, 2008, which could materially affect our business, financial
         condition or future results. As of June 30, 2008, the risk factors of
         the Company have not changed materially from those recorded in our
         Annual Report on Form 10-K. However, the risks described in our Annual
         Report on Form 10-K are not the only risks that we face. Additional
         risks and uncertainties not currently known to us or that we currently
         deem to be immaterial also may materially adversely affect our
         business, financial condition and/or operating results.


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

         The following table sets forth information regarding the Company's
         repurchases of its common stock during the quarter ended June 30, 2008.

<TABLE>
<CAPTION>

                                                                          TOTAL NUMBER          MAXIMUM
                                                                            of Shares       Number of Shares
                                      Total                                Purchased as      That May Yet Be
                                      Number of         Average          Part of Publicly    Purchased Under
                                      Shares          Price Paid          Announced Plan       the Plans or
            Period                  Purchased (1)      Per Share            or Programs          Programs
--------------------------------  ----------------  ---------------     -----------------   -----------------
<S>                                    <C>              <C>                  <C>                   <C>
April 1 - April 30, 2008                     -               -                     -                     -
May 1 - May 31, 2008                   348,846          $10.19               348,846               176,154
June 1 - June 30, 2008                  67,302          $10.02                67,302               108,852
                                    -----------                          ------------
             TOTAL                     416,148                               416,148
                                    ===========                          ============
</TABLE>
--------------------------------
(1)   On May 14, 2008, the Company announced that the Board of Directors had
      approved its seventh stock repurchase program authorizing the Company to
      repurchase up to 525,000 shares of the Company's common stock.


                                      -19-


<PAGE>

                 CLIFTON SAVINGS BANCORP, INC. AND SUBSIDIARIES
                                     PART II


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

         None


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

         None.


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

         None.


ITEM 6.  Exhibits
         --------
<TABLE>
<CAPTION>
         The following Exhibits are filed as part of this report.
                  <S>    <C>
                  3.1    Certificate of Incorporation of Clifton Savings Bancorp, Inc. (1)
                  3.2    By-Laws of Clifton Savings Bancorp, Inc. (2)
                  4.1    Specimen Stock Certificate of Clifton Savings Bancorp, Inc. (1)
                  31.1   Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
                         Act of 2002 (filed herewith).
                  31.2   Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
                         Act of 2002 (filed herewith).
                  32.1   Certification of Chief Executive Officer and Chief Financial Officer Pursuant to
                         18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
                         Act of 2002 (filed herewith).
                  --------------------------
                  (1)   Incorporated herein by reference to the Company's Annual Report on Form 10-K for the fiscal year
                        ended March 31, 2004, filed with the Securities and Exchange Commission on June 29, 2004
                        (File No. 000-50358).
                  (2)   Incorporated herein by reference to the Company's Current Report on Form 8-K filed with the
                        Securities and Exchange Commission on October 26, 2007.

</TABLE>



                                                -20-
<PAGE>

                                   SIGNATURES
                                   ----------


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





                                   CLIFTON SAVINGS BANCORP, INC.


Date: August 7, 2008               By: /s/ John A. Celentano, Jr.
      --------------                   -----------------------------------------
                                       John A. Celentano, Jr.
                                       Chairman of the Board and Chief Executive
                                       Officer
                                       (Principal Executive Officer)


Date: August 7, 2008               By: /s/ Christine R. Piano
      --------------                   -----------------------------------------
                                       Christine R. Piano
                                       Chief Financial Officer and Treasurer
                                       (Principal Financial and Chief Accounting
                                       Officer)





                                      -21-