For
                Immediate ReleaseDate:
            October
                31, 2007Contact:
            Mary
                Beth Steiginga,Assistant
                Secretary630
                Godwin AvenueMidland
                Park, NJ 07432201-
                444-7100








**PRESS
      RELEASE**





**Stewardship
      Financial Corporation Announces**


**Earnings
      for the Third Quarter**





Midland
      Park,  NJ – October 31, 2007- Stewardship Financial Corporation
      (NASDAQ:SSFN) (the “Corporation”), parent of Atlantic Stewardship Bank,
      announced today net income for the nine (9) months ended September 30, 2007
      of
      $3.77 million or $0.71 basic earnings per share, an increase of 7.7% and 7.6%
      respectively, as compared to net income of $3.50 million, or $0.66 basic
      earnings per share for the same nine (9) month period in 2006.  Fully
      diluted earnings per share were $0.70 for the nine (9) months ended September
      30, 2007 as compared to $0.66, an increase of 6.1%, for the nine (9) months
      ended September 30, 2006.  Earnings for the nine (9) months ended
      September 30, 2007 were impacted by the receipt of a life insurance payout
      which
      resulted in miscellaneous income of $459,000.





Stewardship
      Financial Corporation reported net income of $1.23 million or $0.23 basic
      earnings per share for the three (3) months ended September 30, 2007 and for
      the
      three (3) months period ended September 30, 2006.  Diluted earnings
      per share were $0.23 for both of the three (3) month periods ended September
      30,
      2007 and 2006.





Per
      share
      calculations have been adjusted for a 5% stock dividend paid in November 2006
      and a 5% stock dividend payable on November 15, 2007.





Stewardship
      Financial Corporation’s President and Chief Executive Officer Paul Van
      Ostenbridge stated, “We are pleased to report strong earnings for the period
      ending September 30, 2007.  Despite the recent downturn in the real
      estate market due to the subprime lending trends, loan demand has remained
      strong in our market area.  We have never participated in the
      sub-prime residential mortgage lending or negative amortization loan
      markets.  We continue to remain diligent in maintaining strong credit
      quality standards and are proud of the performance of our
      portfolio.  During September 2007, we successfully opened our twelfth
      branch in Westwood, Bergen County, New Jersey and are looking forward to opening
      our thirteenth branch in North Haledon, Passaic County, New Jersey in the first
      quarter of 2008.  We feel our branch network positions us to continue
      to remain competitive in our marketplace and provide a strong delivery channel
      to attract new deposit and lending relationships.”





Stewardship
      Financial Corporation’s total assets reached $547.2 million at September 30,
      2007, compared to $509.1 million at September 30, 2006, resulting in growth
      of
      7.5%.  Total loans increased 9.1% to $395.6 million at September 30,
      2007, compared to $362.6 million at September 30, 2006.  Total
      deposits were $458.6 million at September 30, 2007, compared to $426.7 million
      a
      year ago, resulting in growth of 7.5%.  Total stockholders’ equity
      increased 9.5% to $40.1 million at September 30, 2007, compared to $36.6 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), Westwood, and Wyckoff, New Jersey.  The
      13th branch
      is
      expected to open in North Haledon, New Jersey during the first quarter of
      2008.  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.




*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.*


Page 1
          of 2


**Stewardship
                Financial Corporation****Financial
                Highlights****(unaudited)**(In
                thousands, except per share data)**Nine
                Months Ended**
            
            
            **Three
                Months Ended****September
                30,**
            
            
            **September
                30,****2007**
            
            
            **2006**
            
            
            **2007**
            
            
            **2006****Selected
                Operating Data:**Total
                interest income
            
            $
            24,575
            
            
            $
            22,111
            
            
            $
            8,526
            
            
            $
            7,793Total
                interest expense
            
            
            10,188
            
            
            
            7,807
            
            
            
            3,614
            
            
            
            2,928Net
                interest income before provisionfor
                loan loss
            
            
            14,387
            
            
            
            14,304
            
            
            
            4,912
            
            
            
            4,865Provision
                for loan loss
            
            
            280
            
            
            
            250
            
            
            
            90
            
            
            
            90Net
                interest income after provisionfor
                loan loss
            
            
            14,107
            
            
            
            14,054
            
            
            
            4,822
            
            
            
            4,775Noninterest
                income
            
            
            3,417
            
            
            
            2,886
            
            
            
            915
            
            
            
            984Noninterest
                expense
            
            
            12,050
            
            
            
            11,510
            
            
            
            3,873
            
            
            
            3,869Income
                before income tax expense
            
            
            5,474
            
            
            
            5,430
            
            
            
            1,864
            
            
            
            1,890Income
                tax expense
            
            
            1,705
            
            
            
            1,929
            
            
            
            635
            
            
            
            665Net
                income
            
            $
            3,769
            
            
            $
            3,501
            
            
            $
            1,229
            
            
            $
            1,225Basic
                earnings per share
            
            $
            0.71
            
            
            $
            0.66
            
            
            $
            0.23
            
            
            $
            0.23Diluted
                earnings per share
            
            $
            0.70
            
            
            $
            0.66
            
            
            $
            0.23
            
            
            $
            0.23




**At
                  September 30,****2007**
              
              
              **2006****Selected
                  Financial Data:**Total
                  assets
              
              $
              547,193
              
              
              $
              509,130Total
                  loans, net of deferred loan fees
              
              
              395,594
              
              
              
              362,597Allowance
                  for loan losses
              
              
              4,249
              
              
              
              4,086Total
                  deposits
              
              
              458,571
              
              
              
              426,749Stockholders'
                  equity
              
              
              40,080
              
              
              
              36,600




**At
                  or for the nine month period ended****September
                  30,****2007**
              
              
              **2006****Selected
                  Financial Ratios:**Annualized
                  return on average assets (ROA)
              
              
              0.96
              %
              
              
              0.96
              %Annualized
                  return on average equity (ROE)
              
              
              13.06
              %
              
              
              13.41
              %Tier
                  1 equity to total assets
              
              
              8.60
              %
              
              
              8.56
              %Book
                  value per share
              
              $
              7.55
              
              
              $
              6.94
  All
          share data has been restated to include the effect of a 5% stock dividend
          paid
          in November, 2006 and a 5% stock dividend payable November 15,
          2007.
  Page
          2 of
          2