For Immediate Release
                                        Date:    July 25, 2006

                                        Contact: Mary Beth Steiginga,
                                                 Assistant Secretary
                                                       630 Godwin Avenue
                                                       Midland Park, NJ 07432
                                                       201- 444-7100


                                  PRESS RELEASE

                   Stewardship Financial Corporation Announces
                      Earnings for the Second Quarter, 2006

Midland Park, NJ - July 25, 2006- Stewardship Financial Corporation  (OTC:SSFN),
parent of Atlantic  Stewardship  Bank,  announced today net income for the three
(3) months  ended June 30,  2006 of $1.17  million or $0.25 basic  earnings  per
share, an increase of 2.5% and 4.2%  respectively,  as compared to net income of
$1.14  million,  or $0.24 basic  earnings per share for the same three (3) month
period in 2005.  Fully  diluted  earnings per share were $0.24 per share for the
three (3) months ended June 30, 2006 and 2005.

For the six (6) months ended June 30, 2006,  Stewardship  Financial  Corporation
reported  net income of $2.28  million or $0.48  basic  earnings  per share,  an
increase  of 6.2% and 6.7%  respectively,  as  compared  to net  income of $2.14
million  or $0.45 per share for the same six (6) month  period in 2005.  Diluted
earnings  per share were $0.47 for the six (6) months  ended June 30,  2006,  an
increase  of 4.4% over the diluted  earnings  per share of $0.45 for the six (6)
months ended June 30, 2005. Per share  calculations  have been

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adjusted for a 5% stock dividend paid in November 2005 and a 4 for 3 stock split
issued on July 1, 2005.

Stewardship Financial  Corporation's  President and Chief Executive Officer Paul
Van Ostenbridge  stated, "We are pleased to report the earnings increase for the
period  ending June 30,  2006.  Despite the  pressure on the Bank's net interest
margin  caused by rising  short  term  interest  rates and a flat  yield  curve,
earnings continue to remain strong. We are encouraged by the activity within the
lending  department  as we continue to grow our loan  portfolio  to both new and
existing customers."

Stewardship Financial  Corporation's total assets reached $495.4 million at June
30, 2006,  compared to $461.0  million at June 30, 2005,  resulting in growth of
7.5%.  Total loans increased 14.3% to $359.8 million at June 30, 2006,  compared
to $314.8  million at June 30, 2005.  Total deposits were $419.0 million at June
30, 2006,  compared to $400.6  million a year ago,  resulting in growth of 4.6%.
Total  stockholders'  equity  increased  7.9% to $35.0 million at June 30, 2006,
compared to $32.5 million a year ago.

Stewardship Financial Corporation's  subsidiary,  the Atlantic Stewardship Bank,
has banking  offices in Midland  Park,  Hawthorne  (2),  Montville,  Pequannock,
Ridgewood,  Waldwick,  and Wayne (3), New Jersey. The 11th branch is expected to
open in Wyckoff,  New Jersey during the first quarter of 2007. The bank is known
for tithing 10% of its pre-tax  profits to  Christian  and local  charities.  We
invite you to visit our website at www.asbnow.com for additional information.

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This  information  disclosed in this document  contains certain "forward looking
statements" within the meaning of the Private  Securities  Litigation Reform Act
of 1995, and may be identified by the use of such words as "believe,"  "expect,"
"anticipate," "should," "plan," "estimate," and "potential." Examples of forward
looking  statements  include,  but are not limited to, estimates with respect to
the financial  condition,  results of operations and business of the Corporation
that are subject to various  factors which could cause actual  results to differ
materially  from these  estimates.  These factors  include:  changes in general,
economic and market conditions,  legislative and regulatory  conditions,  or the
development  of  an  interest  rate  environment  that  adversely   affects  the
Corporation's  interest rate spread or other income  anticipated from operations
and investments.











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<PAGE>

                       Stewardship Financial Corporation
                              Financial Highlights
                                   (unaudited)
                     (In thousands, except per share data)


                                        Six Months Ended   Three Months Ended
                                             June 30,           June 30,

                                         2006      2005      2006      2005
                                       -------   -------   -------   -------
Selected Operating Data:
Total interest income                  $14,318   $11,715   $ 7,334   $ 6,026
Total interest expense                   4,879     2,834     2,572     1,547
                                       -------   -------   -------   -------
Net interest income before provision
     for loan loss                       9,439     8,881     4,762     4,479
Provision for loan loss                    160       300       110       150
                                       -------   -------   -------   -------
Net interest income after provision
     for loan loss                       9,279     8,581     4,652     4,329

Noninterest income                       1,902     1,545     1,032       896

Noninterest expense                      7,641     6,766     3,863     3,451


                                       -------   -------   -------   -------
Income before income tax expense         3,540     3,360     1,821     1,774
Income tax expense                       1,264     1,217       654       635
                                       -------   -------   -------   -------
Net income                             $ 2,276   $ 2,143   $ 1,167   $ 1,139
                                       =======   =======   =======   =======

Basic earnings per share               $  0.48   $  0.45   $  0.25   $  0.24
Diluted earnings per share             $  0.47   $  0.45   $  0.24   $  0.24


                                                       At June 30,
                                              2006                     2005
                                            --------                 --------
Selected Financial Data:
Total assets                                $495,367                 $460,953
Total loans, net of deferred loan fees       359,804                  314,786
Allowance for loan losses                      4,011                    3,570
Total deposits                               418,956                  400,558
Stockholders' equity                          35,029                   32,454


                                            At or for the six month period ended
                                                         June 30,
                                              2006                     2005
                                            --------                 --------
Selected Financial Ratios:
Annualized return on average assets (ROA)      0.95%                     1.00%
Annualized return on average equity (ROE)     13.36%                    13.75%
Tier 1 equity to total assets                  8.48%                     8.56%
Book value per share                         $ 7.30                    $ 6.82


All share data has been  restated to include  the effect of a 5% stock  dividend
paid in November, 2005 and a 4 for 3 stock split issued July 1, 2005.


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