| 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**

**NET      INCOME UP 10.5% FOR THE QUARTER**

----

----

| **($                in thousands except per share data)**                                    |   | **Six                Months Ended**          |    |
|----------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                         |   | **June                30**    |    |
|                                                                                         |   | **2007**                                     |    |   | **2006** |   |
|                                                                                         |   |                                         |    |   |   |   |
| **Income                Statement Data:**                                                    |   |                                         |    |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |
|      Interest                income                                 |   | $                                            | 8,865   |   |   | $ | 7,378 |   |
|      Interest                expense                                |   |                                         | 3,710   |   |   |   | 2,614 |   |
|      Net                interest income                             |   |                                         | 5,155   |   |   |   | 4,764 |   |
|      Provision                for loan losses                       |   |                                         | 0       |   |   |   | 126 |   |
|      Net                interest income after prov. for loan losses |   |                                         | 5,155   |   |   |   | 4,638 |   |
|      Non-interest                income                             |   |                                         | 1,272   |   |   |   | 1,184 |   |
|      Non-interest                expense                            |   |                                         | 4,901   |   |   |   | 4,337 |   |
|      Income                before income taxes                      |   |                                         | 1,526   |   |   |   | 1,485 |   |
|      Income                tax expense                              |   |                                         | 470     |   |   |   | 525 |   |
|      Net                income                                      |   | $                                            | 1,056   |   |   | $ | 960 |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
| **Balance                Sheet Data:**                                                       |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|      Total                assets                                    |   | $                                            | 291,452 |   |   | $ | 257,573 |   |
|      Loans,                net                                      |   |                                         | 196,819 |   |   |   | 177,441 |   |
|      Loans                held for sale                             |   |                                         | 9,286   |   |   |   | 15,507 |   |
|      Allowance                for loan losses                       |   |                                         | 2,170   |   |   |   | 2,095 |   |
|      Investment                securities held to maturity          |   |                                         | 13,420  |   |   |   | 10,205 |   |
|      Investment                securities held for sale             |   |                                         | 36,726  |   |   |   | 29,522 |   |
|      Deposits                                                       |   |                                         | 253,079 |   |   |   | 218,957 |   |
|      Borrowings                                                     |   |                                         | 0       |   |   |   | 10,500 |   |
|      Shareholders'                equity                            |   |                                         | 37,152  |   |   |   | 27,053 |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
| **Performance                Ratios:**                                                       |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|      Return                on average assets                        |   |                                         | 0.73    | % |   |   | 0.80 | % |
|      Return                on average equity                        |   |                                         | 5.60    | % |   |   | 7.32 | % |
|      Net                interest margin                             |   |                                         | 3.91    | % |   |   | 4.28 | % |
|      Efficiency                ratio                                |   |                                         | 76.3    | % |   |   | 72.9 | % |
|                                                                                         |   |                                         |    |   |   |   |   |   |
| **Asset                Quality:**                                                            |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|      Nonaccrual                loans                                |   |                                         | 217     |   |   |   | 0 |   |
|      OREO                property                                   |   |                                         | 0       |   |   |   | 0 |   |
|      Net                charge-offs (recoveries)                    |   |                                         | 0       |   |   |   | 2 |   |
|      Allowance                for loan losses to total loans        |   |                                         | 1.09    | % |   |   | 1.17 | % |
|      Nonperforming                loans to total loans              |   |                                         | 0.11    | % |   |   | 0 |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
| **Per                Share Data:**                                                           |   |                                         |    |   |   |   |   |   |
|                                                                                         |   |                                         |    |   |   |   |   |   |
|      Earnings                per share- Basic                       |   | $                                            | 0.21    |   |   | $ | 0.26 |   |
|      Earnings                per share- Diluted                     |   | $                                            | 0.20    |   |   | $ | 0.22 |   |
|      Book                value per share                            |   | $                                            | 7.55    |   |   | $ | 7.12 |   |
|      Tangible                book value                             |   | $                                            | 7.30    |   |   | $ | 6.81 |   |

----

|                                                                                                                 |                                                            |   | **June                  30, 2007** |    |   | **December                  31, 2006** |    |
|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|------------------------------------|---------|--------|----------------------------------------|---------|
|                                                                                                                 |                                                            |   | **(unaudited)**                    |    |   |                                   |    |
| ASSETS                                                                                                               |                                                            |   |                               |    |   |                                   |    |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |
| Cash                  and due from banks                                                                             |                                                            | $      | 11,382                             |    |   | $                                      | 22,662  |   |
| Federal                  funds sold                                                                             |                                                            |   | 5,100                              |    |   |                                   | 5,900   |   |
|                                                                                                                 | Total                  cash and cash equivalents                |   |                               | 16,482  |   |                                   |    | 28,562 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| Loans                  held for sale,net                                                                             |                                                            |   | 9,286                              |    |   |                                   | 5,003   |   |
| Investment                  securities held to maturity(Approximate market value                                     |                                                            |   |                               |    |   |
|   of                  $13,283 in 2007 and $10,552 in 2006)                                                 |                                                            |   | 13,420                             |    |   |                                   | 10,485  |   |
| Investment                  securities available- for- sale                                                          |                                                            |   | 36,726                             |    |   |                                   | 38,914  |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| Loans                  receivable                                                                               |                                                            |   | 199,140                            |    |   |                                   | 192,571 |   |
|     Less:                  allowance for loan losses                                             |                                                            |   | (2,170                             | )       |   |                                   | (2,170  | ) |
|              Deferred                  fees         |                                                            |   | (151                               | )       |   |                                   | (136    | ) |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | Net                  loans receivable                           |   |                               | 196,819 |   |                                   |    | 190,265 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| Premises                  and equipment,net                                                                          |                                                            |   | 6,545                              |    |   |                                   | 6,295   |   |
| Goodwill,                  Net                                                                                  |                                                            |   | 1,191                              |    |   |                                   | 1,191   |   |
| Bank                  owned life insurance                                                                           |                                                            |   | 7,933                              |    |   |                                   | 5,801   |   |
| Accrued                  interest receivable                                                                         |                                                            |   | 1,474                              |    |   |                                   | 1,508   |   |
| Deferred                  tax asset                                                                             |                                                            |   | 1,033                              |    |   |                                   | 805     |   |
| Other                  assets                                                                                        |                                                            |   |                               | 543     |   |                                   |    | 599 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **TOTAL                  ASSETS**                               |   | $                                  | 291,452 |   |                                   | $       | 289,428 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | LIABILITIES                  AND STOCKHOLDERS' EQUITY           |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| LIABILITIES                                                                                                          |                                                            |   |                               |    |   |                                   |    |   |   |
|      Deposits                                                                               |                                                            |   |                               |    |   |                                   |    |   |   |
|        Non-interest                  bearing deposits-demand                      |                                                            | $      | 44,581                             |    |   | $                                      | 51,015  |   |
|         Interest                  bearing deposits                           |                                                            |   |                               |    |   |                                   |    |   |
|         NOW,                  money market and savings                       |                                                            |   | 166,807                            |    |   |                                   | 163,590 |   |
|        Certificates                  of deposit, under $100,000                   |                                                            |   | 21,692                             |    |   |                                   | 20,617  |   |
|        Certificates                  of deposit, $100,000 and over                |                                                            |   | 19,999                             |    |   |                                   | 14,999  |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **Total                  deposits**                             |   |                               | 253,079 |   |                                   |    | 250,221 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| Accrued                  interest payable                                                                            |                                                            |   | 869                                |    |   |                                   | 697     |   |
| Taxes                  payable                                                                                       |                                                            |   |                               | 62      |   |                                   |    | 34 |   |
| Other                  liabilities                                                                                   |                                                            |   |                               | 290     |   |                                   |    | 580 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **Total                  liabilities**                          |   |                               | 254,300 |   |                                   |    | 251,532 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
| STOCKHOLDERS'                  EQUITY                                                                                |                                                            |   |                               |    |   |                                   |    |   |
|      Preferred                  stock-1,000,000 shares authorized:none issued               |                                                            |   | -                                  |    |   |                                   | -       |   |
|     Common                  stock- authorized, 10,000,000 shares                                 |                                                            |   |                               |    |   |                                   |    |   |
|           of                  no par value;issued and outstanding, |                                                            |   |                               |    |   |                                   |    |   |
|          4,923,584                  in 2007 and 4,997,490 in 2006       |                                                            |   | 37,614                             |    |   |                                   | 36,916  |   |
|       Retained                  earnings                                               |                                                            |   | 168                                |    |   |                                   | 1,166   |   |
|       Accumulated                  other comprehensive loss                            |                                                            |   | (630                               | )       |   |                                   | (186    | ) |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **Total                  Stockholders` Equity**                 |   |                               | 37,152  |   |                                   |    | 37,896 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY** |   | $                                  | 291,452 |   |                                   | $       | 289,428 |   |
|                                                                                                                 |                                                            |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | ***Restated                  to reflect 5% stock dividends**    |   |                               |    |   |                                   |    |   |   |
|                                                                                                                 | **  in                  2007 and 2006**               |   |                               |    |   |                                   |    |   |   |

----

**Somerset      Hills BancorpStatement of      Operations**

**(in      thousands, except for share data)**

|                                                                                |   | **Three                  months ended** |   |   | **Three                  months ended** |   |   | **Six                  months ended** |   |   | **Six                  months ended** |   |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                |   | **June                  30, 2007**      |   |   | **June                  30, 2006**      |   |   | **June                  30, 2007**    |   |   | **June                  30, 2006**    |   |
|                                                                                |   | **(unaudited)**                         |   |   | **(unaudited)**                         |   |   | **(unaudited)**                       |   |   | **(unaudited)**                       |   |
| **Interest                  Income:**                                               |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |
|     Loans,                  including fees                      |   | $                                       | 3,617  |   |                                    | $      | 3,349  |                                  |   | $      | 7,162                                 |   |   | $ | 6,422 |   |
|     Investment                  securities                      |   |                                    | 649    |   |                                    |   | 458    |                                  |   |   | 1,326                                 |   |   |   | 917 |   |
|     Federal                  funds sold                         |   |                                    | 203    |   |                                    |   | 13     |                                  |   |   | 347                                   |   |   |   | 23 |   |
|     Interest                  bearing deposits with other banks |   |                                    | 16     |   |                                    |   | 8      |                                  |   |   | 30                                    |   |   |   | 16 |   |
| Total                  interest income                                              |   |                                    | 4,485  |   |                                    |   | 3,828  |                                  |   |   | 8,865                                 |   |   |   | 7,378 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **Interest                  Expense:**                                              |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Deposits                                              |   |                                    | 1,874  |   |                                    |   | 1,344  |                                  |   |   | 3,708                                 |   |   |   | 2,473 |   |
|      Federal                  Home Loan Bank advances      |   |                                    | -      |   |                                    |   | 44     |                                  |   |   | 2                                     |   |   |   | 140 |   |
|      Federal                  funds purchased              |   |                                    | -      |   |                                    |   | -      |                                  |   |   | -                                     |   |   |   | 1 |   |
| Total                  interest expense                                             |   |                                    | 1,874  |   |                                    |   | 1,388  |                                  |   |   | 3,710                                 |   |   |   | 2,614 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| Net                  Interest Income                                                |   |                                    | 2,611  |   |                                    |   | 2,440  |                                  |   |   | 5,155                                 |   |   |   | 4,764 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| Provision                  for loan losses                                          |   |                                    | -      |   |                                    |   | 50     |                                  |   |   | -                                     |   |   |   | 126 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| Net                  Interest Income After                                          |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Provision                  for                        |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Loan                  Losses                          |   |                                    | 2,611  |   |                                    |   | 2,390  |                                  |   |   | 5,155                                 |   |   |   | 4,638 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **Non-Interest                  Income:**                                           |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Service                  fees on deposit accounts     |   |                                    | 90     |   |                                    |   | 75     |                                  |   |   | 169                                   |   |   |   | 150 |   |
|      Gains                  on sales of mortgage loans,net |   |                                    | 423    |   |                                    |   | 354    |                                  |   |   | 838                                   |   |   |   | 819 |   |
|      Other                  Income                         |   |                                    | 161    |   |                                    |   | 99     |                                  |   |   | 265                                   |   |   |   | 215 |   |
| Total                  Non-Interest Income                                          |   |                                    | 674    |   |                                    |   | 528    |                                  |   |   | 1,272                                 |   |   |   | 1,184 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **Non-Interest                  Expenses:**                                         |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Salaries                  and employee benefits       |   |                                    | 1,334  |   |                                    |   | 1,210  |                                  |   |   | 2,594                                 |   |   |   | 2,356 |   |
|      Occupancy                  expense                    |   |                                    | 468    |   |                                    |   | 398    |                                  |   |   | 922                                   |   |   |   | 788 |   |
|      Advertising                  and business promotion   |   |                                    | 114    |   |                                    |   | 131    |                                  |   |   | 226                                   |   |   |   | 301 |   |
|      Stationery                  and supplies              |   |                                    | 69     |   |                                    |   | 45     |                                  |   |   | 135                                   |   |   |   | 104 |   |
|      Data                  processing                      |   |                                    | 127    |   |                                    |   | 104    |                                  |   |   | 262                                   |   |   |   | 206 |   |
|      Other                  operating expense              |   |                                    | 406    |   |                                    |   | 290    |                                  |   |   | 762                                   |   |   |   | 582 |   |
| Total                  Non-Interest Expense                                         |   |                                    | 2,518  |   |                                    |   | 2,178  |                                  |   |   | 4,901                                 |   |   |   | 4,337 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| Income                  before provision for income taxes                           |   |                                    | 767    |   |                                    |   | 740    |                                  |   |   | 1,526                                 |   |   |   | 1,485 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **Provision                  for Income Taxes**                                     |   |                                    | 231    |   |                                    |   | 255    |                                  |   |   | 470                                   |   |   |   | 525 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **Net                  Income**                                                     |   | $                                       | 536    |   |                                    | $      | 485    |                                  |   | $      | 1,056                                 |   |   | $ | 960 |   |
|                                                                                |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| Per                  share data                                                     |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
|      Net                  Income -basic                    |   | $                                       | 0.11   |   |                                    | $      | 0.13   |                                  |   | $      | 0.21                                  |   |   | $ | 0.26 |   |
|      Net                  Income -diluted                  |   | $                                       | 0.10   |   |                                    | $      | 0.11   |                                  |   | $      | 0.20                                  |   |   | $ | 0.22 |   |
| ***Restated                  to reflect 5% stock dividends**                        |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |
| **  in                  2007 and 2006**                                   |   |                                    |   |   |                                    |   |   |                                  |   |   |                                  |   |   |   |   |   |