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, 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. 0-50529

                             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, a non-accelerated filer, or a smaller reporting company. See
definition of "accelerated filer, large accelerated filer, and small reporting
company" in Rule 12b-2 of the Exchange Act. (Check one.)

Large accelerated filer [ ]    Accelerated filer [ ]  Non-accelerated filer [ ]
Smaller reporting company [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 4, 2008, the latest practicable date, 8,882,599 shares of the
registrant's common stock, $.01 par value, were issued and outstanding.

                                  Page 1 of 23

<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                                              15

                Quantitative and Qualitative Disclosures about
                Market Risk                                             22

                Controls and Procedures                                 22

PART II  -     OTHER INFORMATION                                        23

SIGNATURES                                                              25


                                       2
<PAGE>

                             Cheviot Financial Corp.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

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

                                                                                      September 30,        December 31,
         ASSETS                                                                                2008                2007
                                                                                        (Unaudited)
<S>                                                                                      <C>                  <C>
Cash and due from banks                                                                  $    4,790           $   3,680
Federal funds sold                                                                            2,269               4,313
Interest-earning deposits in other financial institutions                                       381               1,457
                                                                                         ----------           ---------
         Cash and cash equivalents                                                            7,440               9,450

Investment securities available for sale - at fair value                                     25,392              12,178
Investment securities held to maturity - at cost, approximate
  market value of $ 7,044 and $23,086 at September 30, 2008
  and December 31, 2007, respectively                                                         7,000              23,000
Mortgage-backed securities available for sale - at fair value                                   675                 814
Mortgage-backed securities held to maturity - at cost, approximate
  market value of $7,325 and $9,577 at September 30, 2008 and
  December 31, 2007, respectively                                                             7,257               9,500
Loans receivable - net                                                                      266,600             249,832
Real estate acquired through foreclosure - net                                                  490                 625
Office premises and equipment - at depreciated cost                                           4,986               5,131
Federal Home Loan Bank stock - at cost                                                        3,369               3,238
Accrued interest receivable on loans                                                          1,181               1,119
Accrued interest receivable on mortgage-backed securities                                        35                  51
Accrued interest receivable on investments and interest-earning deposits                        516                 418
Prepaid expenses and other assets                                                               392                 177
Bank-owned life insurance                                                                     3,482               3,383
Prepaid federal income taxes                                                                      -                 144
                                                                                         ----------           ---------
         Total assets                                                                    $  328,815           $ 319,060
                                                                                         ==========           =========
         LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                                                                   $212,716            $219,526
Advances from the Federal Home Loan Bank                                                     46,060              28,665
Advances by borrowers for taxes and insurance                                                   966               1,253
Accrued interest payable                                                                        177                 117
Accounts payable and other liabilities                                                        1,066                 939
Accrued federal income taxes                                                                     55                   -
Deferred federal income taxes                                                                   384                 640
                                                                                         ----------           ---------
         Total liabilities                                                                  261,424             251,140

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, 2008 and December 31, 2007, respectively            99                  99
  Additional paid-in capital                                                                 43,581              43,418
  Shares acquired by stock benefit plans                                                     (3,186)             (3,582)
  Treasury stock - at cost, 1,036,152 and 967,077 shares at September 30, 2008
    and December 31, 2007, respectively                                                     (12,723)            (12,074)
  Retained earnings - restricted                                                             40,082              40,013
  Accumulated comprehensive loss, unrealized losses on securities
    available for sale, net of related tax effects                                             (462)                 46
                                                                                         ----------           ---------
         Total shareholders' equity                                                          67,391              67,920
                                                                                         ----------           ---------
         Total liabilities and shareholders' equity                                      $  328,815           $ 319,060
                                                                                         ==========           =========
</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,
                                                                         2008         2007              2008         2007
                                                                                            (Unaudited)
Interest income
<S>                                                                  <C>         <C>                <C>          <C>
  Loans                                                               $11,489      $11,179           $ 3,922      $ 3,804
  Mortgage-backed securities                                              369          536               107          170
  Investment securities                                                 1,582        1,388               531          502
  Interest-earning deposits and other                                      80          167                10           39
                                                                      -------      -------           -------      -------
         Total interest income                                         13,520       13,270             4,570        4,515

Interest expense
  Deposits                                                              5,261        5,956             1,513        2,052
  Borrowings                                                            1,226        1,074               480          393
                                                                      -------      -------           -------      -------
         Total interest expense                                         6,487        7,030             1,993        2,445
                                                                      -------      -------           -------      -------
         Net interest income                                            7,033        6,240             2,577        2,070
Provision for losses on loans                                             413           15               125           15
                                                                      -------      -------           -------      -------
         Net interest income after provision for losses on loans        6,620        6,225             2,452        2,055

Other income (expense)
  Rental                                                                   39           36                13           12
  Gain on sale of loans                                                    26           40                17           17
  Loss on sale of real estate acquired through foreclosure                (48)          (3)               (5)          (3)
  Earnings on bank-owned life insurance                                    99           96                34           32
  Other operating                                                         246          242                87           95
                                                                      -------      -------           -------      -------
         Total other income                                               362          411               146          153

General, administrative and other expense
  Employee compensation and benefits                                    3,247        3,293             1,150        1,092
  Occupancy and equipment                                                 418          418               140          144
  Property, payroll and other taxes                                       719          664               229          215
  Data processing                                                         236          231                77           77
  Legal and professional                                                  285          322                93           97
  Advertising                                                             150          131                50           44
  Other operating                                                         475          476               151          136
                                                                      -------      -------           -------      -------
        Total general, administrative and other expense                 5,530        5,535             1,890        1,805
                                                                      -------      -------           -------      -------
         Earnings before income taxes                                   1,452        1,101               708          403

Federal income taxes (benefit)
  Current                                                                 452          274               345          216
  Deferred                                                                  6           75               (88)         (88)
                                                                      -------      -------           -------      -------
        Total federal income taxes                                        458          349               257          128
                                                                      -------      -------           -------      -------
         NET EARNINGS                                                 $   994      $   752           $   451      $   275
                                                                      =======      =======           =======      =======
         EARNINGS PER SHARE
           Basic                                                      $   .11         $.08              $.05         $.03
                                                                      =======      =======           =======      =======

           Diluted                                                    $   .11         $.08              $.05         $.03
                                                                      =======      =======           =======      =======

           Dividends per common share                                 $   .27         $.24              $.09         $.08
                                                                      =======      =======           =======      =======
</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, 2008 and 2007
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                       For the nine months          For the three months
                                                                       ended September 30,           ended September 30,
                                                                       2008         2007              2008         2007

<S>                                                                   <C>          <C>              <C>             <C>
Net earnings for the period                                           $ 994        $ 752            $  451          $ 275
Other comprehensive income (loss), net of tax (benefits):
  Unrealized holding gains (losses) on securities during
   the period, net of tax (benefits) of $(262) and $(25)
   for the nine months ended September 30, 2008 and 2007,
   respectively, and $(151) and $28 for the three months
   ended September 30, 2008 and 2007, respectively                     (508)         (49)             (294)            54
                                                                        ---          ---               ---            ---

Comprehensive income                                                  $ 486        $ 703             $ 157          $ 329
                                                                        ===          ===               ===            ===

Accumulated comprehensive loss                                        $(462)       $ (57)            $(462)         $ (57)
                                                                        ===          ===               ===            ===
</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, 2008 and 2007
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                                               2008                2007
                                                                                                      (Unaudited)
Cash flows from operating activities:
<S>                                                                                       <C>                <C>
  Net earnings for the period                                                              $    994            $    752
  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)                (10)
    Depreciation                                                                                214                 249
    Amortization of deferred loan origination fees - net                                          -                  11
    Proceeds from sale of loans in the secondary market                                       2,833               3,148
    Loans originated for sale in the secondary market                                        (2,787)             (2,943)
    Gain on sale of loans                                                                       (26)                (40)
    Loss on sale of real estate acquired through foreclosure                                     48                   3
    Federal Home Loan Bank stock dividends                                                     (131)                 -
    Provision for losses on loans                                                               413                  15
    Net increase in cash surrender value of bank-owned life insurance                           (99)                (96)
    Amortization of expense related to stock benefit plans                                      376                 439
    Increase (decrease) in cash due to changes in:
      Accrued interest receivable on loans                                                      (62)                (35)
      Accrued interest receivable on mortgage-backed securities                                  16                  10
      Accrued interest receivable on investments and interest-
        earning deposits                                                                        (98)                (14)
      Prepaid expenses and other assets                                                        (215)               (143)
      Accounts payable and other liabilities                                                    103                  20
      Accrued interest payable                                                                   60                   9
      Federal income taxes
        Current                                                                                 199                 (95)
        Deferred                                                                                  6                  75
                                                                                           --------            --------
         Net cash provided by operating activities                                            1,829               1,355
                                                                                           --------            --------
Cash flows used in investing activities:
  Principal repayments on loans                                                              39,471              26,950
  Loan disbursements                                                                        (56,758)            (35,154)
  Loans purchased                                                                              (455)
  Purchase of U.S. Government and agency obligations                                        (18,973)             (7,001)
  Proceeds from maturity of U.S. Government and agency obligations                           21,000               5,000
  Principal repayments on mortgage-backed securities                                          2,386               3,917
  Proceeds from sale of real estate acquired through foreclosure                                661                 113
  Additions to real estate acquired through foreclosure                                          (9)                 (2)
  Purchase of office premises and equipment                                                     (69)                (45)
                                                                                           --------            --------
           Net cash used in investing activities                                            (12,746)             (6,222)
                                                                                           --------            --------
Cash flows provided by financing activities:
  Net increase in deposits                                                                   (6,810)              9,618
  Proceeds from Federal Home Loan Bank advances                                              25,500              13,000
  Repayments on Federal Home Loan Bank advances                                              (8,105)            (12,228)
  Advances by borrowers for taxes and insurance                                                (287)               (326)
  Treasury stock repurchases                                                                   (649)             (4,449)
  Stock option expense, net                                                                     183                 181
  Dividends paid on common stock                                                               (925)               (886)
                                                                                           --------            --------
          Net cash provided by financing activities                                           8,907               4,910
                                                                                           --------            --------

Net increase (decrease) in cash and cash equivalents                                         (2,010)                 43
Cash and cash equivalents at beginning of period                                              9,450               5,490
                                                                                           --------            --------
  Cash and cash equivalents at end of period                                               $  7,440            $  5,533
                                                                                           ========            ========
</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, 2008 and 2007
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                               2008                2007
                                                                                                      (Unaudited)
Supplemental disclosure of cash flow information: Cash paid during the period
  for:
<S>                                                                                         <C>                 <C>
    Federal income taxes                                                                    $   261             $   337
                                                                                            =======             =======
    Interest on deposits and borrowings                                                     $ 6,427             $ 7,021
                                                                                            =======             =======
Supplemental disclosure of noncash investing activities:
  Transfer of loans to real estate acquired through foreclosure                             $   541             $   593
                                                                                            =======             =======
  Loans originated upon sales of real estate acquired through foreclosure                   $   138             $     -
                                                                                            =======             =======
 Recognition of mortgage servicing rights in accordance with SFAS No. 140                   $    15             $     9
                                                                                            =======             =======
</TABLE>

See accompanying notes to consolidated financial statements.

                                       7
<PAGE>
                             Cheviot Financial Corp.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         For the three and nine months ended September 30, 2008 and 2007


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 to the  origination  of primarily
real  estate  loans.  The  Corporation  is 61% 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, 2007. 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, 2008, 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, 2008,  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, 2008 and December 31, 2007,  we had $46.1 million
and $28.7 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 $98.0 million and $109.4 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, 2008 and 2007


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, 2008, loan originations totaled $59.5 million, compared to $38.1 million for
the nine months ended September 30, 2007.

Total deposits decreased $6.8 million during the nine months ended September 30,
2008.  Total  deposits  increased  $9.6  million  during the nine  months  ended
September 30, 2007.  Deposit flows are affected by the level of interest  rates,
the interest rates and products  offered by competitors  and other factors.  The
significant increase in deposits during the nine months ended September 30, 2008
reflects the addition of a branch location and the total composition of deposits
shifting to higher rate certificates of deposit.

The  following  table  sets  forth   information   regarding  the  Corporation's
obligations  and  commitments  to make  future  payments  under  contract  as of
September 30, 2008.
<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    $   3,152    $  30,908     $ 46,060
      Certificates of deposit                               68,392        62,472       10,748            -      141,612

    Amount of loan commitments and expiration per period:
      Commitments to originate one- to four-family
        loans                                                2,757             -            -            -        2,757
      Home equity lines of credit                           11,650             -            -            -       11,650
      Undisbursed loans in process                           4,039             -            -            -        4,039
                                                          --------      --------     --------     --------     --------
         Total contractual obligations                    $ 86,838      $ 74,472     $ 13,900     $ 30,908     $206,118
                                                          ========      ========     ========     ========     ========
</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, 2008 and 2007


3. Liquidity and Capital Resources (continued)

At September  30, 2008 and 2007,  we exceeded all of the  applicable  regulatory
capital  requirements.  Our core (Tier 1) capital  was $55.0  million  and $52.8
million,  or 16.7 % and 16.7% of total assets at September 30, 2008 and 2007. In
order to be classified as "well-capitalized"  under federal banking regulations,
we were  required  to have core  capital of at least $19.7  million,  or 6.0% of
assets as of September 30, 2008. 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, 2008 and 2007, we had a total  risk-based  capital
ratio of 32.2% and 32.4%, 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 214,247 and 249,954 unallocated shares
held by the ESOP for the three and nine  months  ended  September  30,  2008 and
2007, respectively.
<TABLE>
<CAPTION>

                                                          For the nine months ended         For the three months ended
                                                                September 30,                       September 30,
                                                            2008            2007                 2008           2007

         Weighted-average common shares
<S>                                                    <C>             <C>                  <C>            <C>
           outstanding (basic)                         8,692,243       8,961,216            8,668,352      8,801,564
         Dilutive effect of assumed exercise
           of stock options                               50,176         111,081               54,816        101,865
                                                     -----------     -----------          -----------     ----------
         Weighted-average common shares
           outstanding (diluted)                       8,742,419       9,072,297            8,723,168      8,903,429
                                                       =========       =========            =========      =========
</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 2008,  2007,  2006 and 2005
approximately 8,060, 6,460, 6,100 and 384,000 option shares were granted subject
to five year vesting.

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

<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2008 and 2007


5. Stock Option Plan (continued)

The Corporation  adopted the provisions of SFAS No. 123(R) effective  January 1,
2006, using the modified  prospective  transition  method, and therefore has not
restated its financial  statements  for prior  periods.  Under this method,  the
Corporation  has applied the  provisions of SFAS No. 123(R) to new  equity-based
awards and to  equity-based  awards  modified,  repurchased,  or cancelled after
January 1, 2006. In addition, the Corporation  recognizes  compensation cost for
the portion of  equity-based  awards for which the requisite  service period has
not been rendered  ("unvested  equity-based  awards") that are outstanding as of
January 1, 2006. The compensation cost recorded for unvested equity-based awards
is based on their grant-date fair value. For the nine months ended September 30,
2008,  the  Corporation  recorded  $183,000 in after-tax  compensation  cost for
equity-based awards that vested during the nine months ended September 30, 2008.
The Corporation has $445,000  unrecognized  pre-tax compensation cost related to
non-vested  equity-based  awards  granted under its stock  incentive  plan as of
September 30, 2008,  which is expected to be recognized over a  weighted-average
vesting period of approximately 1.8 years.

A summary of the status of the  Corporation's  stock option plan as of September
30, 2008, and changes during the period then ended is presented below:
<TABLE>
<CAPTION>

                                                                    Nine months ended                   Year ended
                                                                   September 30, 2008                December 31, 2007
                                                                               Weighted-                       Weighted-
                                                                                average                          average
                                                                               exercise                         exercise
                                                                  Shares          price           Shares           price

<S>                                                               <C>            <C>               <C>          <C>
    Outstanding at beginning of period                            396,220       $ 11.21            389,760     $  11.17
    Granted                                                         8,060          9.03              6,460        13.63
    Exercised                                                           -            -                  -             -
    Forfeited                                                           -            -                  -             -
                                                                  -------       -------            -------     --------
    Outstanding at end of period                                  404,280       $ 11.16            396,220     $  11.21
                                                                  =======       =======            =======     ========
    Options exercisable at period-end                             233,936       $ 11.17            154,692     $  11.16
                                                                  =======       =======            =======     ========

    Fair value of options granted                                               $  1.93                        $   2.77
                                                                                =======                        ========
</TABLE>

The following information applies to options outstanding at September 30, 2008:

    Number outstanding                                                   404,280
    Exercise price$9.03 - $13.63
    Weighted-average exercise price                                       $11.16
    Weighted-average remaining contractual life                        6.8 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, 2008 and 2007

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  2008:  dividend  yield  of  3.65%,  expected
volatility of 26.13%,  risk-free  interest rate of 3.78% and an expected life of
10 years for each grant.

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

6. Income Taxes

The Corporation  adopted the provisions of FASB  Interpretation  48, "Accounting
for  Uncertainty  in  Income  Taxes,"  on  January  1,  2007.  Previously,   the
Corporation had accounted for tax  contingencies in accordance with Statement of
Financial  Accounting  Standards  No.  5,  "Accounting  for  Contingencies."  As
required by Interpretation  48, which clarifies  Statement No. 109,  "Accounting
for Income Taxes," 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 the adoption date, the Corporation  applied  Interpretation 48 to
all tax  positions  for which the statute of  limitations  remained  open.  As a
result of the  implementation  of  Interpretation  48, 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.

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 2004.

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

                                       12
<PAGE>

                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2008 and 2007

7. Disclosures About Fair Value of Assets and Liabilities

Effective January 1, 2008, the Company adopted Statement of Financial Accounting
Standards  No. 157,  Fair Value  Measurements  (FAS 157).  FAS 157 defines  fair
value,  establishes a framework for measuring fair value and expands disclosures
about fair value measurements.  FAS 157 has been applied prospectively as of the
beginning of the year.

FAS 157 defines  fair value 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.  FAS 157 also  establishes a fair value
hierarchy which requires an entity to maximize the use of observable  inputs and
minimize the use of unobservable  inputs when measuring fair value. The standard
describes three levels of inputs that may be used to measure fair value:

  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.

<TABLE>
<CAPTION>
                                                                             Fair Value Measurements at
                                                                                   September 30, 2008
                                       --------------------------------------------------------------------
                                                              Quoted prices
                                                                 in active       Significant    Significant
                                                                markets for         other          other
                                                                 identical       observable    unobservable
                                                                  assets           inputs         inputs
                                        September 30, 2008       (Level 1)        (Level 2)      (Level 3)
                                        ------------------       ---------        ---------      ---------
<S>                                       <C>                                     <C>
      Securities available for sale       $  26,067                             $  26,067

</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, 2008 was
approximately $1.6 million.

                                       13
<PAGE>
                             Cheviot Financial Corp.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

         For the three and nine months ended September 30, 2008 and 2007

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

FASB Staff Position Number FAS 157-2 delays the implementation of SFAS 157 until
the first  quarter of 2009 with respect to goodwill,  other  intangible  assets,
real  estate  and  other  assets   acquired   through   foreclosure   and  other
non-financial assets measured at fair value on a nonrecurring basis.

8. Effects of Recent Accounting Pronouncements

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial  Assets and  Financial  Liabilities  - Including  an Amendment of FASB
Statement No. 115." This Statement  allows  companies the choice to measure many
financial instruments and certain other items at fair value. The objective is to
improve  financial  reporting  by providing  entities  with the  opportunity  to
mitigate  volatility in reported earnings caused by measuring related assets and
liabilities  differently  without  having  to  apply  complex  hedge  accounting
provisions.  This  Statement  is  expected  to  expand  the  use of  fair  value
measurement,   which  is  consistent  with  the  Board's  long-term  measurement
objectives  for  accounting for financial  instruments.  This  Statement  became
effective  as of  January 1, 2008 as to the  Corporation,  and  interim  periods
within those fiscal years. The impact of this new pronouncement was not material
to the Corporation's consolidated financial statements.

Securities  and Exchange  Commission  (SEC) Staff  Accounting  Bulletin No. 109,
Written Loan Commitments Recorded at Fair Value Through Earnings (SAB 109) -- In
November 2007, SEC SAB 109 was issued. SAB 109 provides the staff's views on the
accounting  for written  loan  commitments  recorded at fair value.  To make the
staff's views  consistent  with  Statement No. 156,  Accounting for Servicing of
Financial  Assets,  and Statement No. 159, SAB 109 revises and rescinds portions
of SAB No. 105,  Application of Accounting  Principles to Loan Commitments,  and
requires  that the  expected  net future  cash flows  related to the  associated
servicing  of a loan should be included in the  measurement  of all written loan
commitments  that  are  accounted  for  at  fair  value  through  earnings.  The
provisions  of SAB 109 are  applicable  to written  loan  commitments  issued or
modified in fiscal  quarters  beginning after December 15, 2007. The Corporation
adopted this Statement with no material impact to the Corporation's consolidated
financial statements.

                                       14

<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.

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.

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, 2007 and at September
30, 2008
--------------------------------------------------------------------------------

Total assets increased $9.8 million, or 3.1%, to $328.8 million at September 30,
2008,  from $319.1  million at December 31,  2007.  The increase in total assets
reflects an  increase  in loans  receivable,  which were  partially  offset by a
decrease in cash and cash equivalents, investment securities and mortgage-backed
securities.

Cash, federal funds sold and  interest-earning  deposits decreased $2.0 million,
or 21.3%,  to $7.4 million at September 30, 2008,  from $9.5 million at December
31, 2007.  The decrease in cash and cash  equivalents at September 30, 2008, was
due to a $2.0 million decrease in federal funds sold and a $1.1 million decrease
in  interest-earning  deposits,  which was  partially  offset by a $1.1  million
increase  in cash and due  from  banks.  Investment  securities  decreased  $2.8
million to $32.4  million at September  30, 2008.  At September  30, 2008,  $7.0
million of investment  securities  were  classified  as held to maturity,  while
$25.4 million were classified as available for sale.
                                       15
<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, 2007 and at September
30, 2008 (continued)
--------------------------------------------------------------------------------

Mortgage-backed  securities decreased $2.4 million, or 23.1%, to $7.9 million at
September  30, 2008,  from $10.3  million at December 31, 2007.  The decrease in
mortgage-backed  securities  was due  primarily  to  principal  prepayments  and
repayments  totaling  $2.4  million.  At  September  30,  2008,  $7.3 million of
mortgage-backed  securities were classified as held to maturity,  while $675,000
were  classified as available  for sale.  As of September 30, 2008,  none of the
mortgage-backed securities are considered impaired.

Loans  receivable,  including loans held for sale,  increased $16.8 million,  or
6.8%, to $266.6  million at September 30, 2008,  from $249.8 million at December
31, 2007.  The increase  reflects  loan  originations  totaling  $59.5  million,
partially offset by loan principal repayments of $39.5 million and sales of $2.8
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 from the origination of loans.

The  allowance  for loan losses  totaled  $576,000 and $596,000 at September 30,
2008 and December 31, 2007,  respectively.  In  determining  the adequacy of the
allowance  for loan  losses  at any point in time,  management  and the board of
directors  apply  a  systematic  process  focusing  on the  risk  of loss in the
portfolio. First, the loan portfolio is segregated by loan types to be evaluated
collectively   and  loan  types  to  be   evaluated   individually.   Delinquent
multi-family  and  commercial  loans are  evaluated  individually  for potential
impairments  in their  carrying  value.  Second,  the  allowance for loan losses
entails  utilizing our five year historic loss  experience by applying such loss
percentage to the loan types to be collectively evaluated in the portfolio.  The
$413,000  provision  for losses on loans during the nine months ended  September
30, 2008 is a reflection of these  factors,  weaker  economic  conditions in the
greater Cincinnati area, and the charge-off of specific loans totaling $433,000.
The five year historic loss  experience has improved from prior year,  which has
caused the  allowance  for loan loss as a percentage  of loans to decrease.  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, 2008.

Non-performing and impaired loans totaled $1.6 million and $660,000 at September
30,  2008  and  December  31,  2007,   respectively.   At  September  30,  2008,
non-performing  and impaired loans were comprised  solely of three loans secured
by one-  to  four-family  residential  real  estate  and two  loans  secured  by
multi-family  residential real estate. The allowance for loan losses represented
37.1% and 90.3% of  non-performing  and impaired loans at September 30, 2008 and
December 31, 2007,  respectively.  Based on individual  analyses of these loans,
management  believes that the  Corporation's  allowance for loan losses conforms
with generally accepted accounting principles based upon the available facts and
circumstances,  there can be no assurance  that  additions to the allowance will
not be necessary in future periods,  which would adversely affect our results of
operations.

Deposits  decreased  $6.8 million,  or 3.1%, to $212.7  million at September 30,
2008, from $219.5 million at December 31, 2007.  Deposits  decreased as a result
of the highly competitive rate environment that Cheviot operates in. Cheviot was
able to meet liquidity and cash flow needs with increase borrowings from FHLB at
lower rates than competitors deposit rates.  Advances from the Federal Home Loan
Bank of Cincinnati  increased by $17.4  million,  or 60.7%,  to $46.1 million at
September 30, 2008, from $28.7 million at December 31, 2007.

Shareholders' equity decreased $529,000,  or 0.8%, to $67.4 million at September
30,  2008,  from $67.9  million at December 31,  2007.  The  decrease  primarily
resulted from the repurchase of our common stock totaling $649,000 and dividends
paid of $925,000,  which were partially  offset by net earnings of $994,000.  At
September 30, 2008,  Cheviot Financial had the ability to purchase an additional
378,509 shares under its announced stock repurchase plan.

                                       16
<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, 2007 and at September
30, 2008 (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,  2008,  $68.4  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.

Borrowings from the Federal Home Loan Bank of Cincinnati increased $17.4 million
during  the nine  months  ended  September  30,  2008.  This  increase  was used
primarily to fund our primary  investing  activity  which is the  origination of
one- to four-family real estate loans, commercial real estate,  construction and
consumer loans. We have the ability to increase such borrowings by approximately
$98.0 million.  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,
2008 and 2007
--------------------------------------------------------------------------------

General

Net earnings for the nine months ended  September 30, 2008 totaled  $994,000,  a
$242,000 increase from the $752,000 in net earnings reported for the same period
in 2007.  The  increase in net  earnings  reflects  an increase in net  interest
income of $793,000 and a decrease of $5,000 in general, administrative and other
expenses, which were partially offset by an increase in the provision for losses
on loans of  $398,000,  a decrease in other income of $49,000 and an increase of
$109,000 in federal income taxes for the 2008 period.

Net Interest Income

Total  interest  income  increased  $250,000,  or 1.9%, to $13.5 million for the
nine-months  ended  September 30, 2008,  from $13.3  million for the  comparable
period in 2007. Interest income on loans increased  $310,000,  or 2.8%, to $11.5
million  during the 2008 period from $11.2  million  for the 2007  period.  This
increase was due primarily to a $12.6 million,  or 5.2%, increase in the average
balance of loans  outstanding,  which was  partially  offset by a 14 basis point
decrease  in the  weighted-average  yield on loans to 5.94 % for the 2008 period
from 6.08% for the nine months ended September 30, 2007.

Interest income on mortgage-backed  securities decreased $167,000,  or 31.2%, to
$369,000 for the nine months ended  September  30, 2008,  from  $536,000 for the
same period in 2007,  due  primarily to a $4.3  million  decrease in the average
balance of  securities  outstanding,  which was  partially  offset by a 12 basis
point increase in the average yield for the nine months ended September 30, 2008
from the comparable  period in 2007.  Interest  income on investment  securities
increased  $194,000,  or  14.0%,  to $1.6  million  for the  nine  months  ended
September  30, 2008,  compared to $1.4 million for the same period in 2007,  due
primarily to a 50 basis point increase in the average yield to 5.75% in the 2008
period,  and an increase  of $1.4  million,  or 4.1% in the  average  balance of
investment  securities  outstanding.  Interest income on other  interest-earning
deposits  decreased  $87,000,  or 52.1% to  $80,000  for the nine  months  ended
September 30, 2008, as compared to the same period in 2007.

                                       17
<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,
2008 and 2007 (continued)
--------------------------------------------------------------------------------

Interest expense decreased $543,000, or 7.8% to $6.5 million for the nine months
ended  September  30,  2008,  from  $7.0  million  for the same  period in 2007.
Interest  expense on deposits  decreased by $695,000,  or 11.7%, to $5.3 million
for the nine months ended  September  30,  2008,  from $6.0 million for the same
period  in 2007 due  primarily  to a 46 basis  point  decrease  in the  weighted
average  costs of deposits to 3.29% during the 2008 period,  which was partially
offset by a $1.8  million,  or 0.9%,  increase in the  weighted-average  balance
outstanding. Interest expense on borrowings increased by $152,000, or 14.2%, due
primarily  to a  $7.5  million,  or  25.3%,  increase  in  the  average  balance
outstanding,  which was  partially  offset by a 43 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 2008 as compared to
2007, 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 $793,000,  or 12.7%,  to $7.0 million for the
nine months ended September 30, 2008. The average interest rate spread increased
to 2.41% for the nine months  ended  September  30, 2008 from 2.06% for the nine
months ended September 30, 2007. The net interest margin  increased to 3.05% for
the nine months  ended  September  30, 2008 from 2.80% for the nine months ended
September 30, 2007.

Provision for Losses on Loans

Management recorded a $413,000 provision for losses on loans for the nine months
ended September 30, 2008. There was a $15,000  provision for losses on loans for
the  nine  months  ended  September  30,  2007.  The  decision  to make a larger
provision  for loan losses  during the nine months ended  September 30, 2008, as
compared  to recent  periods,  reflects  the amount  necessary  to  maintain  an
adequate  allowance  based on the five year historical loss experience and other
external  factors.  These  other  external  factors,   economic  conditions  and
collateral value changes, have had a negative impact on non-owner occupied loans
in the  portfolio.  The $468 million  increase in loan portfolio for nine months
has also increased the allowance calculation. 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 decreased $49,000,  or 12.0%, to $362,000 for the nine months ended
September  30,  2008,  compared to the same period in 2007,  due  primarily to a
decrease in the gain on sale of loans of $14,000,  an increase of $45,000 in the
loss on sale of real estate acquired through  foreclosure,  which were partially
offset by an increase of $4,000 in other operating income.

General, Administrative and Other Expense

General,  administrative  and other expense  decreased  $5,000, or 0.1%, to $5.5
million for the nine months ended  September 30, 2008, from $5.5 million for the
comparable period in 2007. This decrease is a result of a decrease of $46,000 in
employee compensation and benefits, a $37,000 decrease in legal and professional
expense,  which were partially  offset by a $55,000 increase in property payroll
and other taxes. The decrease in employee  compensation and benefits is a result
of the  decrease in  compensation  expense  recorded  for the fair value of ESOP
shares  allocated as a result of the  decrease in the average  stock price and a
decrease in the expense related to health insurance costs. The decrease in legal

                                       18
<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,
2008 and 2007 (continued)
--------------------------------------------------------------------------------

and professional  services was due primarily to expenses incurred for litigation
proceedings  wherein the  Corporation  was  defending  its security  interest in
collateral during the nine months ended September 30, 2007.

The  Corporation  reached a settlement  regarding  this  litigation  for $50,000
during the prior  period,  accounting  for the majority of the decrease in other
operating  expense.  The increase in  property,  payroll and other taxes was due
primarily to an increase in the Ohio  franchise tax. In 2009 we expect our other
expense to be affected by higher deposit insurance premiums assessments from the
FDIC.

Federal Income Taxes

The provision for federal income taxes increased $109,000, or 31.3%, to $458,000
for the nine months ended  September 30, 2008, from $349,000 for the same period
in 2007, due primarily to a $351,000,  or 31.9%,  increase in pre-tax  earnings.
The  effective  tax rate was 31.6% and 31.7% for the nine  month  periods  ended
September 30, 2008 and 2007. The difference between the Corporation's  effective
tax rate in the 2008 and 2007 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.

Comparison of Operating Results for the Three-Month  Periods Ended September 30,
2008 and 2007
--------------------------------------------------------------------------------

General

Net earnings for the three months ended September 30, 2008 totaled  $451,000,  a
$176,000  increase from the $275,000 net earnings reported in the September 2007
period. The increase in net earnings reflects an increase in net interest income
after the provision for losses on loans of $397,000,  which was partially offset
by a decrease of $7,000 in other  income,  an  increase of $85,000,  in general,
administrative  and other expenses and an increase of $129,000 in federal income
taxes for the 2008 quarter.

Net Interest Income

Total  interest  income  increased  $55,000,  or 1.3%,  to $4.6  million for the
three-months  ended  September 30, 2008,  from the  comparable  quarter in 2007.
Interest income on loans increased $118,000, or 3.1%, to $3.9 million during the
2008  quarter  from $3.8  million for the 2007  quarter.  This  increase was due
primarily to a $17.1 million,  or 6.9%, increase in the average balance of loans
outstanding,  which was  partially  offset by a 21 basis  point  decrease in the
average  yield on loans to 5.92% for the 2008  quarter  from 6.13% for the three
months ended September 30, 2007.

Interest income on mortgage-backed  securities  decreased $63,000,  or 37.1%, to
$107,000 for the three months ended  September  30, 2008,  from $170,000 for the
comparable 2007 quarter, due primarily to a $3.7 million decrease in the average
balance of securities  outstanding  and a 47 basis point decrease in the average
yield  period to period.  Interest  income on  investment  securities  increased
$29,000,  or 5.8%,  to $531,000 for the three months ended  September  30, 2008,
compared to $502,000 for the same quarter in 2007,  due  primarily to a 61 basis
point  increase in the  average  yield to 6.12% in the 2008  quarter,  which was
partially  offset by a decrease of $1.7 million,  or 4.8% in the average balance
of investment securities outstanding.  Interest income on other interest-earning
deposits  decreased  $29,000,  or 74.4% to $10,000  for the three  months  ended
September 30, 2008.
                                       19

<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,
2008 and 2007 (continued)
--------------------------------------------------------------------------------

Interest  expense  decreased  $452,000,  or 18.5% to $2.0  million for the three
months ended September 30, 2008, from $2.4 million for the same quarter in 2007.
Interest  expense on deposits  decreased by $539,000,  or 26.3%, to $1.5 million
from $2.1  million due  primarily  to a 101 basis point  decrease in the average
costs of deposits to 2.89% during the 2008 quarter and a $1.1 million,  or 0.6%,
decrease in the average  balance  outstanding.  Interest  expense on  borrowings
increased by $87,000,  or 22.2%,  due  primarily to a $13.1  million,  or 41.5%,
increase in the average balance outstanding,  which was partially offset by a 68
basis point decrease in the average cost of borrowings.

As a result of changes in interest  income and  interest  expense,  net interest
income  increased  by $507,000,  or 24.5%,  to $2.6 million for the three months
ended  September 30, 2008, as compared to the same quarter in 2007.  The average
interest rate spread increased to 2.76% for the three months ended September 30,
2008 from 2.00% for the three months ended  September 30, 2007. The net interest
margin  increased to 3.33% for the three months  ended  September  30, 2008 from
2.77% for the three months ended September 30, 2007.

Provision for Losses on Loans

Management  recorded  a  $125,000  provision  for  losses on loans for the three
months ended  September  30, 2008.  There was a $15,000  provision for losses on
loans for the three months  ended  September  30,  2007.  The decision to make a
provision  for loan losses  during the three  months  ended  September  30, 2008
reflects  the amount  necessary to maintain an adequate  allowance  based on the
five year 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.  The $5.4 million increase
in loan  portfolio  for the  three  months  has  also  increased  the  allowance
calculation.  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 decreased  $7,000,  or 4.6%, to $146,000 for the three months ended
September  30, 2008,  compared to the same quarter in 2007,  due  primarily to a
decrease in other operating income of $8,000.

General, Administrative and Other Expense

General,  administrative and other expense increased  $85,000,  or 4.7%, to $1.9
million for the three months ended September 30, 2008, from $1.8 million for the
comparable  quarter in 2007. This increase is a result of an increase of $58,000
in employee  compensation  and  benefits  and a $14,000  increase  in  property,
payroll and other taxes.  The increase in employee  compensation and benefits is
due  primarily  to an  increase  in the number of  employees.  The  increase  in
property,  payroll  and other  taxes is due  primarily  to an  increase  in Ohio
franchise tax.

                                       20
<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,
2008 and 2007 (continued)
--------------------------------------------------------------------------------

FDIC Premiums

The Federal Deposit Insurance Corporation ("FDIC") imposes 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 that 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).

Recent  bank  failures  coupled  with  deteriorating  economic  conditions  have
significantly reduced the deposit insurance fund's reserve ratio. As of June 30,
2008, the designated  reserve ratio was 1.01% of estimated  insured  deposits at
March 31, 2008. As a result of this reduced  reserve ratio, on October 16, 2008,
the FDIC  published a proposed rule that would restore the reserve ratios to its
required  level.  The proposed  rule would raise the current  deposit  insurance
assessment  rates  uniformly for all  institutions by 7 basis points (to a range
from 12 to 50 basis  points) for the first  quarter of 2009.  The proposed  rule
would  also  alter  the  way  the  FDIC  calculates  federal  deposit  insurance
assessment rates beginning in the second quarter of 2009 and thereafter.

Under the proposed rule, the FDIC would first establish an institution's initial
base assessment  rate. This initial base assessment rate would range,  depending
on the risk category of the  institution,  from 10 to 45 basis points.  The FDIC
would then adjust the initial  base  assessment  (higher or lower) to obtain the
total base assessment  rate. The adjustments to the initial base assessment rate
would  be  based  upon  an  institution's  levels  of  unsecured  debt,  secured
liabilities,  and brokered deposits.  The total base assessment rate would range
from 8 to 77.5  basis  points  of the  institution's  deposits.  There can be no
assurance  that the proposed rule will be implemented by the FDIC or implemented
in its proposed form.

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.

These actions will significantly  increase our non-interest  expense in 2009 and
in future years as long as the increased premiums are in place.

Federal Income Taxes

The  provision  for federal  income  taxes  increased  $129,000,  or 100.1%,  to
$257,000 for the three months ended  September  30, 2008,  from $128,000 for the
same quarter in 2007, due primarily to a $305,000, or 75.7%, increase in pre-tax


                                       21

<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,
2008 and 2007 (continued)
--------------------------------------------------------------------------------

earnings. The effective tax rate was 36.3% and 31.8% for the three month periods
ended  September 30, 2008 and 2007,  respectively.  The  difference  between the
Corporation's  effective  tax  rate in the 2008  and  2007  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.

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, 2007. Cheviot maintains its same approach to managing the operation
of the Bank and the pricing of its products.


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.

                                       22

<PAGE>

                             Cheviot Financial Corp.

                                     PART II

ITEM 1.  Legal Proceedings

               None.

ITEM 1A.       Risk Factors

               The Federal Deposit  Insurance  Corporation  ("FDIC")  imposes 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  that 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).

               Recent  bank  failures   coupled  with   deteriorating   economic
               conditions  have  significantly  reduced  the  deposit  insurance
               fund's reserve ratio. As of June 30, 2008, the designated reserve
               ratio was 1.01% of estimated  insured deposits at March 31, 2008.
               As a result of this reduced  reserve ratio,  on October 16, 2008,
               the FDIC published a proposed rule that would restore the reserve
               ratios to its required  level.  The proposed rule would raise the
               current  deposit  insurance  assessment  rates  uniformly for all
               institutions  by 7 basis  points  (to a range from 12 to 50 basis
               points) for the first  quarter of 2009.  The proposed  rule would
               also alter the way the FDIC calculates  federal deposit insurance
               assessment  rates  beginning  in the  second  quarter of 2009 and
               thereafter.

               Under the  proposed  rule,  the FDIC  would  first  establish  an
               institution's  initial base  assessment  rate.  This initial base
               assessment  rate would range,  depending on the risk  category of
               the institution,  from 10 to 45 basis points. The FDIC would then
               adjust the initial  base  assessment  (higher or lower) to obtain
               the total base  assessment  rate. The  adjustments to the initial
               base assessment rate would be based upon an institution's  levels
               of unsecured debt,  secured  liabilities,  and brokered deposits.
               The total base  assessment  rate would range from 8 to 77.5 basis
               points of the institution's  deposits.  There can be no assurance
               that  the  proposed  rule  will  be  implemented  by the  FDIC or
               implemented in its proposed form.

               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.

               These  actions  will  significantly   increase  our  non-interest
               expense  in 2009  and in future years  as  long as the  increased
               premiums are in place.

                                       23


<page>
                             Cheviot Financial Corp.

                               PART II (CONTINUED)


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, 2008, the Corporation had purchased 69,075 shares pursuant
     to the program.
<TABLE>
<CAPTION>
                                                                                Total # of
                                                                             shares purchased
                                       Total              Average          as part of publicly
                                    # of shares         price paid           announced plans
      Period                         purchased           per share             or programs
      ------                         ---------           ---------            ------------

<S>                                  <C>                 <C>                    <C>
      July 1-31, 2008                  4,000               $7.86                  63,575
      August 1-31, 2008                2,500               $8.26                  66,075
      September 1 - 30, 2008           3,000               $8.70                  69,075
</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.

                                       24
<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 13, 2008              By:  /s/Thomas J. Linneman
       ---------------------               -------------------------------------
                                           Thomas J. Linneman
                                           President and Chief Executive Officer



Date:   November 13, 2008              By:  /s/Scott T. Smith
       ---------------------               -------------------------------------
                                           Scott T. Smith
                                           Chief Financial Officer
                                       25

<PAGE>