|                                                 |                                           |
|------------------------------------------------------|------------------------------------------------|
| Stewart                E. McClure, Jr.               | Gerard                Riker                    |
| President                and Chief Executive Officer | EVP                and Chief Financial Officer |
| 908-630-5000                                         | 908-630-5018                                   |

**SOMERSET      HILLS BANCORP REPORTS INCREASED EARNINGS-NET INCOME UP 9% FOR THE      QUARTER**

**DECLARES      5% STOCK DIVIDEND AND CASH DIVIDEND OF $0.04 PER SHARE – A 33%      INCREASE**

----

**Forward-Looking      Statements**

----

| **($                    in thousands except per share data)**                                    |   | **Twelve                    Months Ended** |    |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                             |   | **December                    31**         |    |
|                                                                                             |   | **2006**                                   |    |   | **2005** |   |
| **Income                    Statement Data:**                                                    |   |                                       |    |   |   |   |
|                                                                                             |   |                                       |    |   |   |   |
|      Interest                    income                                 |   | $                                          | 15,782  |   |   | $ | 11,605 |   |
|      Interest                    expense                                |   |                                       | 6,054   |   |   |   | 3,194 |   |
|      Net                    interest income                             |   |                                       | 9,728   |   |   |   | 8,411 |   |
|      Provision                    for loan losses                       |   |                                       | 201     |   |   |   | 392 |   |
|      Net                    interest income after prov. for loan losses |   |                                       | 9,527   |   |   |   | 8,019 |   |
|      Non-interest                    income                             |   |                                       | 2,869   |   |   |   | 2,939 |   |
|      Non-interest                    expense                            |   |                                       | 9,022   |   |   |   | 8,414 |   |
|      Income                    before income taxes                      |   |                                       | 3,374   |   |   |   | 2,544 |   |
|      Income                    tax expense                              |   |                                       | 1,176   |   |   |   | 429 |   |
|      Net                    income                                      |   | $                                          | 2,198   |   |   | $ | 2,115 |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
| **Balance                    Sheet Data:**                                                       |   |                                       |    |   |   |   |   |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
|      Total                    assets                                    |   | $                                          | 289,260 |   |   | $ | 245,926 |   |
|      Loans,                    net                                      |   |                                       | 190,265 |   |   |   | 165,118 |   |
|      Loans                    held for sale                             |   |                                       | 5,003   |   |   |   | 15,380 |   |
|      Allowance                    for loan losses                       |   |                                       | 2,170   |   |   |   | 2,029 |   |
|      Investment                    securities held to maturity          |   |                                       | 10,485  |   |   |   | 9,366 |   |
|      Investment                    securities held for sale             |   |                                       | 38,914  |   |   |   | 31,899 |   |
|      Deposits                                                           |   |                                       | 250,221 |   |   |   | 208,244 |   |
|      Borrowings                                                         |   |                                       | 0       |   |   |   | 10,600 |   |
|      Shareholders'                    equity                            |   |                                       | 37,728  |   |   |   | 25,305 |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
| **Performance                    Ratios:**                                                       |   |                                       |    |   |   |   |   |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
|      Return                    on average assets                        |   |                                       | 0.86    | % |   |   | 1.00 | % |
|      Return                    on average equity                        |   |                                       | 7.62    | % |   |   | 8.82 | % |
|      Net                    interest margin                             |   |                                       | 4.15    | % |   |   | 4.31 | % |
|      Efficiency                    ratio                                |   |                                       | 71.6    | % |   |   | 74.1 | % |
|                                                                                             |   |                                       |    |   |   |   |   |   |
| **Asset                    Quality:**                                                            |   |                                       |    |   |   |   |   |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
|      Nonaccrual                    loans                                |   |                                       | 282     |   |   |   | 0 |   |
|      OREO                    property                                   |   |                                       | 0       |   |   |   | 0 |   |
|      Net                    charge-offs (recoveries)                    |   |                                       | 1       |   |   |   | (3 | ) |
|      Allowance                    for loan losses to total loans        |   |                                       | 1.13    | % |   |   | 1.21 | % |
|      Nonperforming                    loans to total loans              |   |                                       | 0.15    | % |   |   | 0.00 | % |
|                                                                                             |   |                                       |    |   |   |   |   |   |
| **Per                    Share Data:**                                                           |   |                                       |    |   |   |   |   |   |
|                                                                                             |   |                                       |    |   |   |   |   |   |
|      Earnings                    per share- Basic                       |   | $                                          | 0.58    |   |   | $ | 0.62 |   |
|      Earnings                    per share- Diluted                     |   | $                                          | 0.55    |   |   | $ | 0.54 |   |
|      Book                    value per share                            |   | $                                          | 7.93    |   |   | $ | 7.75 |   |
|      Tangible                    book value                             |   | $                                          | 7.68    |   |   | $ | 7.39 |   |

----

|                                                                                                  |                                                            |   | **December                          31, 2006** |    |   | **December                          31, 2005** |    |
|-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|------------------------------------------------|---------|--------|------------------------------------------------|---------|
|                                                                                                  |                                                            |   | **(Unaudited)**                                |    |   |                                           |    |
| ASSETS                                                                                                |                                                            |   |                                           |    |   |                                           |    |
| Cash                          and due from banks                                                      |                                                            | $      | 21,312                                         |    |   | $                                              | 10,218  |   |
| Interest                          bearing deposits                                                    |                                                            |   | 1,350                                          |    |   |                                           | 103     |   |
| Federal                          funds sold                                                      |                                                            |   | 5,900                                          |    |   |                                           | -       |   |
|                                                                                                  | **Total                          cash and cash equivalents**    |   |                                           | 28,562  |   |                                           |    | 10,321 |   |
| Loans                          held for sale,net                                                      |                                                            |   | 5,003                                          |    |   |                                           | 15,380  |   |
| Investment                          securities held to maturity (Market value                         |                                                            |   | 10,485                                         |    |   |                                           | 9,366   |   |
| $                          10,552 in 2006 and $ 9,372 in 2005)                                        |                                                            |   |                                           |    |   |                                           |    |   |
| Investment                          securities available- for- sale                                   |                                                            |   | 38,914                                         |    |   |                                           | 31,899  |   |
|                                                                                                  |                                                            |   |                                           |    |   |                                           |    |   |   |
| Loans                          receivable                                                             |                                                            |   |                                           | 192,571 |   |                                           |    | 167,301 |   |
|       less                          allowance for loan losses           |                                                            |   | (2,170                                         | )       |   |                                           | (2,029  | ) |
|       deferred                          fees                            |                                                            |   |                                           | (136    | )      |                                           |    | (154 | ) |
| Net                          loans receivable                                                    |                                                            |   | 190,265                                        |    |   |                                           | 165,118 |   |
|                                                                                                  |                                                            |   |                                           |    |   |                                           |    |   |   |
| Premises                          and equipment, net                                                  |                                                            |   | 6,295                                          |    |   |                                           | 4,679   |   |
| Goodwill,                          net                                                                |                                                            |   |                                           | 1,191   |   |                                           |    | 1,191 |   |
| Bank                          owned life insurance                                                    |                                                            |   | 5,801                                          |    |   |                                           | 5,533   |   |
| Accrued                          interest receivable                                                  |                                                            |   | 1,508                                          |    |   |                                           | 1,135   |   |
| Deferred                          tax asset                                                      |                                                            |   | 743                                            |    |   |                                           | 889     |   |
| Other                          assets                                                                 |                                                            |   |                                           | 493     |   |                                           |    | 415 |   |
|                                                                                                  | **Total                          assets**                       |   | $                                              | 289,260 |   |                                           | $       | 245,926 |   |
| LIABILITIES                          AND STOCKHOLDERS' EQUITY                                         |                                                            |   |                                           |    |   |                                           |    |   |
| LIABILITIES                                                                                           |                                                            |   |                                           |    |   |                                           |    |   |   |
|      Deposits                                                                |                                                            |   |                                           |    |   |                                           |    |   |   |
|      Non-interest                          bearing deposits-demand           |                                                            | $      | 51,015                                         |    |   | $                                              | 45,667  |   |
|      Interest                          bearing deposits-NOW,                 |                                                            |   |                                           |    |   |                                           |    |   |
|         money                          market and savings     |                                                            |   | 163,590                                        |    |   |                                           | 141,846 |   |
|      Certificates                          of deposit, under $100,000        |                                                            |   | 20,617                                         |    |   |                                           | 14,034  |   |
|      Certificates                          of deposit, $100,000 and over     |                                                            |   | 14,999                                         |    |   |                                           | 6,697   |   |
|                                                                                                  | **Total                          deposits**                     |   |                                           | 250,221 |   |                                           |    | 208,244 |   |
|                                                                                                  |                                                            |   |                                           |    |   |                                           |    |   |   |
| Federal                          Home Loan Bank advances                                              |                                                            |   | -                                              |    |   |                                           | 10,600  |   |
| Accrued                          interest payable                                                     |                                                            |   | 697                                            |    |   |                                           | 252     |   |
| Other                          liabilities                                                            |                                                            |   |                                           | 614     |   |                                           |    | 1,525 |   |
|                                                                                                  | **Total                          liabilities**                  |   |                                           | 251,532 |   |                                           |    | 220,621 |   |
| Commitments                          and contingencies                                                |                                                            |   |                                           |    |   |                                           |    |   |
|                                                                                                  |                                                            |   |                                           |    |   |                                           |    |   |   |
| STOCKHOLDERS'                          EQUITY                                                         |                                                            |   |                                           |    |   |                                           |    |   |
| Preferred                          stock-1,000,000 shares authorized; none issued                     |                                                            |   |                                           |    |   |                                           | -       |   |
|      *Common                          stock- authorized,9,000,000 shares     |                                                            |   |                                           |    |   |                                           |    |   |
|       of                          no par value issued and outstanding,  |                                                            |   |                                           |    |   |                                           |    |   |
|      4,759,514                          shares in 2006 and 3,426,289 in 2005 |                                                            |   | 34,968                                         |    |   |                                           | 24,389  |   |
|      Retained                          earnings (Accumulated deficit)        |                                                            |   | 3,008                                          |    |   |                                           | 1,223   |   |
|      Accumulated                          other comprehensive loss income    |                                                            |   | (248                                           | )       |   |                                           | (307    | ) |
| **Total                          stockholders` equity**                                               |                                                            |   | 37,728                                         |    |   |                                           | 25,305  |   |
|                                                                                                  | **Total                          liabilities and**              |   |                                           |    |   |                                           |    |   |   |
|                                                                                                  | **stockholders'                          equity**               |   | $                                              | 289,260 |   |                                           | $       | 245,926 |   |
|                                                                                                  | *Restated                          to reflect 5% stock dividend |   |                                           |    |   |                                           |    |   |   |

----

|                                                                                                       |   | **Three****months****ended**             |   |   | **Three****months****ended**             |   |   | **Twelve****months****ended**            |   |   | **Twelve****months****ended**            |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                                                                       |   | **Dec.                        31, 2006** |   |   | **Dec.                        31, 2005** |   |   | **Dec.                        31, 2006** |   |   | **Dec.                        31, 2005** |   |
|                                                                                                       |   | **(unaudited)**                          |   |   | **(unaudited)**                          |   |   | **(unaudited)**                          |   |   |                                     |   |
| INTEREST                        INCOME                                                                     |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |
|     Loans,                        including fees                                       |   | $                                        | 3,577  |   |                                     | $      | 3,043  |                                     |   | $      | 13,601                                   |   |   | $ | 10,152 |   |
|     Federal                        funds sold                                          |   |                                     | 108    |   |                                     |   | 11     |                                     |   |   | 158                                      |   |   |   | 181 |   |
|     Investment                        securities                                       |   |                                     | 579    |   |                                     |   | 415    |                                     |   |   | 1,985                                    |   |   |   | 1,239 |   |
|     Cash                        and due from  banks                          |   |                                     | 14     |   |                                     |   | 5      |                                     |   |   | 38                                       |   |   |   | 33 |   |
| Total                        interest income                                                               |   |                                     | 4,278  |   |                                     |   | 3,474  |                                     |   |   | 15,782                                   |   |   |   | 11,605 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| INTEREST                        EXPENSE                                                                    |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|      Deposits                                                                     |   |                                     | 1,733  |   |                                     |   | 963    |                                     |   |   | 5,782                                    |   |   |   | 3,089 |   |
|      Federal                        Funds Purchased                               |   |                                     | -      |   |                                     |   | 4      |                                     |   |   | 1                                        |   |   |   | 4 |   |
|      Federal                        Home Loan Bank advances                       |   |                                     | 18     |   |                                     |   | 48     |                                     |   |   | 271                                      |   |   |   | 101 |   |
| Total                        interest expense                                                              |   |                                     | 1,751  |   |                                     |   | 1,015  |                                     |   |   | 6,054                                    |   |   |   | 3,194 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| Net                        Interest Income                                                                 |   |                                     | 2,527  |   |                                     |   | 2,459  |                                     |   |   | 9,728                                    |   |   |   | 8,411 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| PROVISION                        FOR LOAN LOSSES                                                           |   |                                     | -      |   |                                     |   | 143    |                                     |   |   | 201                                      |   |   |   | 392 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| Net                        interest income after provision for                                             |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|     loan                        losses                                                 |   |                                     | 2,527  |   |                                     |   | 2,316  |                                     |   |   | 9,527                                    |   |   |   | 8,019 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| NON-INTEREST                        INCOME                                                                 |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|      Service                        fees on deposit accounts                      |   |                                     | 66     |   |                                     |   | 70     |                                     |   |   | 283                                      |   |   |   | 273 |   |
|      Gains                        on sales of mortgage loans, net                 |   |                                     | 607    |   |                                     |   | 630    |                                     |   |   | 2,083                                    |   |   |   | 2,251 |   |
|      Gains                        (losses) on sales of investment securities, net |   |                                     | -      |   |                                     |   | -      |                                     |   |   | -                                        |   |   |   | (2 | ) |
|      Other                        income                                          |   |                                     | 171    |   |                                     |   | 110    |                                     |   |   | 503                                      |   |   |   | 417 |   |
| Total                        Non-Interest Income                                                           |   |                                     | 844    |   |                                     |   | 810    |                                     |   |   | 2,869                                    |   |   |   | 2,939 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| NON-INTEREST                        EXPENSE                                                                |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|      Salaries                        and employee benefits                        |   |                                     | 1,233  |   |                                     |   | 1,088  |                                     |   |   | 4,879                                    |   |   |   | 4,192 |   |
|      Occupancy                        expense                                     |   |                                     | 425    |   |                                     |   | 336    |                                     |   |   | 1,603                                    |   |   |   | 1,397 |   |
|      Advertising                        & business promotions                 |   |                                     | 115    |   |                                     |   | 144    |                                     |   |   | 552                                      |   |   |   | 540 |   |
|      Printing                        stationery and supplies                      |   |                                     | 98     |   |                                     |   | 69     |                                     |   |   | 261                                      |   |   |   | 250 |   |
|      Data                        processing                                       |   |                                     | 117    |   |                                     |   | 99     |                                     |   |   | 435                                      |   |   |   | 379 |   |
|      Other                        operating expense                               |   |                                     | 363    |   |                                     |   | 436    |                                     |   |   | 1,292                                    |   |   |   | 1,656 |   |
| Total                        Non-Interest Expense                                                          |   |                                     | 2,351  |   |                                     |   | 2,172  |                                     |   |   | 9,022                                    |   |   |   | 8,414 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| Income                        before provision for taxes                                                   |   |                                     | 1,020  |   |                                     |   | 954    |                                     |   |   | 3,374                                    |   |   |   | 2,544 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| PROVISION                        FOR INCOME TAX                                                            |   |                                     | 355    |   |                                     |   | (98    | )                                        |   |   | 1,176                                    |   |   |   | 429 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| **Net                        income**                                                                      |   | $                                        | 665    |   |                                     | $      | 1,052  |                                     |   | $      | 2,198                                    |   |   | $ | 2,115 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| Per                        share data                                                                      |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|      Net                        income - basic                                    |   | $                                        | 0.15   |   |                                     | $      | 0.31   |                                     |   | $      | 0.58                                     |   |   | $ | 0.62 |   |
|      Net                        income - diluted                                  |   | $                                        | 0.15   |   |                                     | $      | 0.27   |                                     |   | $      | 0.55                                     |   |   | $ | 0.54 |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| Per                        share data reflects a 5% stock                                                  |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
| dividend                        which was effective May 31, 2006                                           |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |
|                                                                                                       |   |                                     |   |   |                                     |   |   |                                     |   |   |                                     |   |   |   |   |   |