For
                Immediate ReleaseDate:
            February
                26, 2007Contact:
            
            Mary
                Beth SteigingaAssistant
                Secretary630
                Godwin AvenueMidland
                Park, NJ 07432201-444-7100











**PRESS
      RELEASE**





**STEWARDSHIP
      FINANCIAL CORPORATION REPORTS RECORD**


**EARNINGS
      FOR YEAR ENDING DECEMBER 31, 2006**











Midland
      Park, NJ - February 26, 2007 - Stewardship Financial Corporation (OTC:SSFN),
      parent company of Atlantic Stewardship Bank, announced today net income earned
      for the year ended December 31, 2006, of $4.75 million, or $0.95 basic net
      income per share, an increase of 6.1% and 5.6% in net income and basic net
      income per share respectively, as compared to net income of $4.48 million or
      $0.90 per share for the year ended December 31, 2005.





Diluted
      income per share was $0.94 for the year ended December 31, 2006, an increase
      of
      5.6% over the diluted income per share of $0.89 for the year ended December
      31,
      2005.





Net
      income for the quarter ended December 31, 2006, increased by 6.3% to $1.25
      million from $1.18 million for the same three-month period in 2005. Basic and
      diluted earnings per share for the quarter ended December 31, 2006, were $0.25
      compared to $0.24 and $0.23, respectively for the same period in
      2005.





During
      the quarter ended December 31, 2006, Atlantic Stewardship Bank successfully
      completed the sale of its $3.4 million credit card portfolio to Elan Financial
      Services (“Elan”), a national credit card issuer. Under the purchase agreement,
      Elan will issue credit cards under the name of





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Press
      Release - Midland Park NJ


Stewardship
                Financial Corporation*continued*
            February
                26, 2007








Atlantic
      Stewardship Bank and will provide customers with a choice selection of credit
      card products. As part of our overall strategy to improve income and overall
      efficiency of our lending area, the sale provides an opportunity to redirect
      resources to more profitable lending areas while continuing to provide our
      customers with strong credit card products through Elan. The Corporation also
      completed a sale of $17.3 million of available for sale securities that were
      yielding less than 5 percent. The proceeds of the sale were used to purchase
      higher yielding securities and to fund loan growth that should reduce exposure
      to future interest rate risk and enhance long-term financial performance. The
      gain from the sale of the credit card portfolio and the loss from the sale
      of
      the securities had a net impact of increasing basic and fully diluted earnings
      per share by $0.03 for the year ended December 31, 2006.





Net
      income per share data has been restated to reflect a 4 for 3 stock split issued
      in July, 2005, and a 5% stock dividend paid in November, 2006 and
      2005.





Paul
      Van
      Ostenbridge, President and Chief Executive Officer of both Stewardship Financial
      Corporation and Atlantic Stewardship Bank, stated, “We are excited to report our
      strongest earnings ever for the year ending December 31, 2006. Considering
      the
      pressure on net interest margins and the competitive deposit and loan pricing
      environment, we are pleased with the success of our organization.”





Stewardship
      Financial Corporation’s total assets reached $519.7 million at December 31,
      2006, compared to $482.7 million at December 31, 2005, for a growth of 7.7%.
      Total loans increased $23.7 million, or 6.9% from $345.8 million at December
      31,
      2005 to $369.5 million at December 31, 2006. Total deposits were $434.2 million
      at December 31, 2006, compared to $403.5 million








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Press
                Release - Midland Park NJStewardship
                Financial Corporation*continued*
            February
                26, 2007











a
      year
      ago, for an increase of 7.6%. Total stockholders’ equity increased 11.7% to
      $37.3 million at
      December 31, 2006, compared to $33.4 million a year ago.





Stewardship
      Financial Corporation is the parent company for Atlantic Stewardship Bank,
      which
      has banking offices in Midland Park, two branches in Hawthorne, Montville,
      Pequannock, Ridgewood, Waldwick and three branches in Wayne, New Jersey. The
      Bank will open its eleventh branch in Wyckoff in March, 2007 and is seeking
      approvals on its twelfth branch in Westwood. Atlantic Stewardship Bank, opened
      in 1985, is a community bank serving individuals and businesses, and is well
      known for tithing ten percent of its pre-tax profits to Christian and local
      charitable organizations.





Visit
      our
      website at www.asbnow.com or call
      201-444-7100 for further information regarding our products and
      services.





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






**Year
                    Ended**
                
                **Three
                    Months Ended****December
                    31,**
                
                **December
                    31,****2006**
                
                **2005**
                
                **2006**
                
                **2005****Selected
                    Operating Data:**Total
                    interest income
                
                $
                30,000
                
                $
                24,900
                
                $
                7,889
                
                $
                6,724Total
                    interest expense
                
                
                10,916
                
                
                6,689
                
                
                3,109
                
                
                2,008Net
                    interest income before provisionfor
                    loan loss
                
                
                19,084
                
                
                18,211
                
                
                4,780
                
                
                4,716Provision
                    for loan loss
                
                
                264
                
                
                600
                
                
                14
                
                
                150Net
                    interest income after provisionfor
                    loan loss
                
                
                18,820
                
                
                17,611
                
                
                4,766
                
                
                4,566Gain
                    on sale of credit card portfolio
                
                
                746
                
                
                -
                
                
                746
                
                
                -Loss
                    on sales of securities
                
                
                (435
                )
                
                -
                
                
                (435
                )
                
                -Other
                    noninterest income
                
                
                3,878
                
                
                3,240
                
                
                993
                
                
                841Noninterest
                    income
                
                
                4,189
                
                
                3,240
                
                
                1,304
                
                
                841Noninterest
                    expense
                
                
                15,629
                
                
                13,867
                
                
                4,120
                
                
                3,549Income
                    before income tax expense
                
                
                7,380
                
                
                6,984
                
                
                1,950
                
                
                1,858Income
                    tax expense
                
                
                2,627
                
                
                2,504
                
                
                698
                
                
                680Net
                    income
                
                $
                4,753
                
                $
                4,480
                
                $
                1,252
                
                $
                1,178Basic
                    earnings per share
                
                $
                0.95
                
                $
                0.90
                
                $
                0.25
                
                $
                0.24Diluted
                    earnings per share
                
                $
                0.94
                
                $
                0.89
                
                $
                0.25
                
                $
                0.23




**At
                  December 31,****2006**
              
              **2005****Selected
                  Financial Data:**Total
                  assets
              
              $
              519,749
              
              $
              482,727Total
                  loans, net of deferred loan fees
              
              
              369,544
              
              
              345,823Allowance
                  for loan losses
              
              
              4,101
              
              
              3,847Total
                  deposits
              
              
              434,223
              
              
              403,466Stockholders'
                  equity
              
              
              37,306
              
              
              33,384




**At
                  or for the year ended****December
                  31,****2006**
              
              **2005****Selected
                  Financial Ratios:**Annualized
                  return on average assets (ROA)
              
              
              0.96
              %
              
              1.00
              %Annualized
                  return on average equity (ROE)
              
              
              13.41
              %
              
              13.86
              %Tier
                  1 capital to total assets
              
              
              8.53
              %
              
              8.37
              %Book
                  value per share
              
              $
              7.43
              
              $
              6.70




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