**U.S.      SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C. 20549**

**FORM      10-KSB/A**

**Amendment      No. 1**

**ý**
**ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE **

**SECURITIES**

**EXCHANGE      ACT OF 1934**

**o**
**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES**

**EXCHANGE      ACT OF 1934**

**SOMERSET      HILLS BANCORP**

| **New                Jersey**                  | **22-3768777**                     |
|------------------------------------------------|------------------------------------|
| (State                of other jurisdiction of | (I.                R. S. Employer  |
| incorporation                or organization)  | Identification                No.) |

| **155                Morristown Road, Bernardsville, NJ** | **07924**                 |
|-----------------------------------------------------------|---------------------------|
| (Address                of principal executive offices)   | (Zip                Code) |

**(908)      221-0100**

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**DOCUMENTS      INCORPORATED BY REFERENCE**

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|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                        | **10-KSB                  Item Incorporated**                                                                                                         |                                                    | **Document**                                                                                                                                         |   |
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|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| **Item                  9.**                                                | Directors                  and Executive Officers of the Company; Compliance with Section                  16(a) of                  the Exchange Act |                                                    | Proxy                  Statement for 2006 Annual Meeting of Shareholders to be filed no                  later                  than April 30, 2006. |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| **Item                  10.**                                               | Executive                  Compensation                                                                                                               |                                                    | Proxy                  Statement for 2006 Annual Meeting of Shareholders to be filed no                  later                  than April 30, 2006. |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| **Item                  11.**                                               | Security                  Ownership of Certain Beneficial Owners and Management                                                                       |                                                    | Proxy                  Statement for 2006 Annual Meeting of Shareholders to be filed no                  later                  than April 30, 2006. |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| **Item                  12.**                                               | Certain                  Relationships and Related Transactions                                                                                       |                                                    | Proxy                  Statement for 2006 Annual Meeting of Shareholders to be filed no                  later                  than April 30, 2006. |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| **Item                  14.**                                               | Principal                  Accountant Fees and Services                                                                                               |                                                    | Proxy                  Statement for 2006 Annual Meeting of Shareholders to be filed no                  later                  than April 30, 2006. |   |
|                                                                        |                                                                                                                                                  |                                                    |                                                                                                                                                 |   |
| Transitional                  Small Business Disclosure Format (Check One): |                                                                                                                                                  | Yes o    No                  x |                                                                                                                                                 |

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**EXPLANITORY      NOTE**

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**ITEM      8A. --CONTROLS AND PROCEDURES **

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**ITEM      13. -- EXHIBITS **

| Exhibit                number | Description                of Exhibits                                    |   |
|-------------------------------|---------------------------------------------------------------------------|--------|
|                          |                                                                      |   |
| 3.1                           | Certificate                of Incorporation of Somerset Hills Bancorp (1) |   |
| 3.2                           | Bylaws                of Somerset Hills Bancorp (1)                       |   |
| 3.3                           | Certificate                of Incorporation for Somerset Hills Bank (1)   |   |
| 3.4                           | Bylaws                of Somerset Hills Bank (1)                          |   |
| 4.1                           | Specimen                Common Stock Certificate (1)                      |   |
| 4.2                           | Specimen                of Warrant (1)                                    |   |
| 4.3                           | Warrant                Agreement (1)                                      |   |
| 10.1                          | 1998                Combined Stock Option Plan (1)                        |   |
| 10.2                          | 1998                Non-Qualified Stock Option Plan (1)                   |   |
| 10.3                          | 2001                Combined Stock Option Plan (1)                        |   |
| 10.4                          | Employment                Agreement of Stewart E. McClure, Jr. (1)        |   |
| 10.5                          | Employment                Agreement of Gerard Riker (1)                   |   |
| 14                            | Code                of Ethics (2)                                         |   |
| 21                            | Subsidiaries                of Somerset Hills Bancorp(3)                  |   |
| 23                            | Consent                of KPMG LLP(3)                                     |   |
| 31                            | Rule                13a-14(a)/15d-14(a) Certifications                    |   |
| 32                            | Section                1350 Certification(3)                              |   |

| (1) | Incorporated                by reference from the Registrant's Registration Statement on Form                SB-2, as                amended, File No. 333-99647, declared effective on November 12,                2002. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated                by reference from Exhibit 14 from the Registrant’s Annual Report on                Form10-KSB for the year ended December 31,                2004. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed                with the original Annual Report on Form 10-KSB on March 24,                2006. |
|-----|-------------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|   | **SOMERSET                HILLS BANCORP**         |
|--------|---------------------------------------------------|
|   |                                              |
|   |                                              |
|   | By:/s/                Stewart E. McClure, Jr.     |
|   | Stewart                E. McClure, Jr.            |
|   | President,                Chief Executive Officer |
|   | and                Chief Operating Officer        |
|   |                                              |