Presentation to Ryan Beck & Co. 

November 1, 2006

Welcome To

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**Forward-Looking Statements**

**This presentation contains estimates and other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. SOMHcautions that the assumptions forming the basis for forward-looking statements include many factors that are beyond the Company’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of depositors,borrowers and other customers. Other factors that could cause actual results, including earnings and growth in market share, to differ materially from the Company’s expectations include, but are not limited to, general economic conditions,economic conditions in our New Jersey trade area, the future level and direction of interest rates, the strength of the home mortgage market, changes in governmental economic and tax policies, changes in bank regulation and other uncertainties.Somerset Hills Bancorp does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events..**

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Who We Are

$1,533,000

1st 9 Months Net Income 2006

Stock - SOMH  

Warrants - SOMHW

NASDAQ Capital Market

Up 44%

9 Month Net Income

$1,063,000

1st 9 Months Net Income 2005

$30 Million

Total Capital as of 9/30/2006

$269 Million

Total Assets as of 9/30/2006

Founded 12/1998

Community Bank in Northern New Jersey

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Where We Are

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**13% Increase Over 2002**

**7% Increase Over 2003**

Total Assets

**26% Increase**

**Over 2001**

**35% Increase Over 2004**

**16% Increase Over 2005**

**25% Increase Over 2004**

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Statement of Operations

+13%

$ 1,063

1st 9 Months 2005

+44%

$ 1,533

1st 9 Months 2006

+56%

$ 2,115

2005

+16%

$ 1,359

2004

+555%

$ 1,173

2003

+132%

$    179

2002

+96%

$  (560)

2001

Change From Prior Year

Net Income/Loss

Year

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Loan Growth - Total Balances

**15% Increase Over 2002**

**22% Increase Over 2003**

**21% Increase Over 2004**

**38% Increase Over 2001**

**15% Increase Over 2005**

**27% Increase Over 2004**

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Loan Mix Composition Total Balances

**September 30, 2006**

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Consumer Loan Portfolio – Loan Composition

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Net Interest Margin

4.20%

  9/30/2006

4.31%

12/31/2005

3.78%

12/31/2004

3.40%

12/31/2003

3.52%

12/31/2002

2.98%

12/31/2001

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Deposit Growth

**Total Deposits**

**Core Deposits**

**6% Increase**

**14% Increase**

**43% Increase**

**16% Increase**

**22% Increase**

**30% Increase**

**22% Increase**

**34% Increase**

**15% Increase**

**9%  Increase**

**27% Increase**

**32% Increase**

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Deposit Mix

90% 

84%

20,731 

36,741

141,846 

157,537

45,667 

42,533

12/31/2005 

  9/30/2006

85%

23,748

94,066

37,061

12/31/2004

79%

30,545

86,111

28,995

12/31/2003

66%

42,538

67,520

15,386

12/31/2002

65%

$35,783

$53,898

$13,272

12/31/2001

Core Deposits as a % of Total Deposits

Time Deposits

NOW/Money Market/Savings

Demand

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Paramount Checking

**Total Balances**

**Number of Accounts**

**417% Increase Over 2001**

**252% Increase Over 2002**

**3% Decrease Over 2003**

**5% Increase Over 2004**

**31% Increase Over 2005**

**46% Increase Over 2001**

**25% Increase Over 2002**

**13% Increase Over 2003**

**10% Increase Over 2004**

**16% Increase Over 2005**

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Paramount Checking

**Average Balance Per Account**

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Escrow Ease

**Total Balances**

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Escrow Ease

**Number of Client Accounts**

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Asset Quality and Reserves

From the outset, we have implemented a strong credit culture through the application of sound banking principles.  

As of September 30, 2006 Somerset Hills Bancorp had $236,000 in non-performing loans, which is 0.13% of total loans.  

Loan loss reserves as of the same date totaled $2.2 million. 

Loan Loss Reserve 1.20% of total loans. 

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Subsidiaries 

Sullivan Financial Services Inc. 

Acquired March 2000 

100% ownership 

Somerset Hills Wealth Management, LLC 

Founded November 2002 

100% ownership 

Somerset Hills Title, LLC 

Founded May 2004 

50% ownership 

Somerset Hills Investment Holdings Inc. 

Founded January 2006 

100% ownership 

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Sullivan Financial Services, Inc.Products and Services

Conventional Mortgage Loans 

Fixed and Adjustable Rate Loans 

FHA/VA Loans 

Jumbo Mortgages 

1st Time Buyer Programs 

No Doc Loans 

No Cost Refinances 

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Sullivan Financial Services, Inc.Loan Volume

 Sep2006

2005

2004

2003

2002

2001

($124)

$85

$143

$885

$622

$368

Net Income

820

1132

1091

2098

1384

1153

Closings

$221,397

$311,273

$270,803

$505,384

$320,978

$220,261

Closings

997

1362

1297

2159

1701

1530

Originations

$262,567

$379,114

$330,491

$530,913

$404,513

$304,179

Originations

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Somerset Hills Wealth Management, LLC

For the Individual:

Financial Planning 

Investment Management 

Estate Review 

Life, Health & Long Term Care Insurance 

Property and Casualty Insurance

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Somerset Hills Wealth Management, LLC

For the Business Owner:

Business Succession Planning 

Buy-Sell & Key Person Agreements 

Retirement Plans & Group Insurance 

Property and Casualty Insurance

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Somerset Hills Title Company, LLC

PROVIDING TITLE SERVICE IN CONNECTION WITH THE CLOSING OF REAL ESTATE TRANSACTIONS

3rd Qtr 2006

2005

2004

$44,000

$64,000

$20,000

Net Income to Bank

$51 Million

$57 Million

$30 Million

Amount of Closed Transactions

34

62

30

Total Transactions

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Look to the FutureBuilding the Franchise

 New Branch Opportunities 

 Acquisition Opportunities 

 Staffing Opportunities

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Warrant Expiration

Terms of Warrants: 

Entitles holder to purchase 1.22 shares of SOMH common stock for $9.65. ($7.91 per share) 

Expire November 30, 2006. 

Recently declared our quarterly dividend of $0.03 per share payable on November 30, 2006 to holders on record as of November 15, 2006. 

Warrant holders who exercise and become record holders by November 15, 2006 will receive this dividend on the new shares. 

Financial Impact: 

Accretive to book value. 

Accretive to EPS.

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