**
**Stewart E. McClure, Jr.**

**President and CEO**

**155 Morristown Road, Bernardsville NJ 07924**

**908-630-5000**

**www.somersethillsbank.com**

December 7, 2006

1

2

**Forward-Looking Statements**

** This presentation contains estimates and other forward-looking**

**statements within the meaning of the Private Securities**

**Litigation Reform Act of 1995. SOMH cautions 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..**

Who We Are

$1,533,000

1st9 Months Net Income 2006

Stock - SOMH  

Warrants - SOMHW

NASDAQ Capital Market

Up 44%

9 Month Net Income

$1,063,000

1st9 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

3

Where We Are

4

Statement of Operations

+13%

$ 1,063

1st9 Months 2005

+44%

$ 1,533

1st9 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

5

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**

6

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**

7

Paramount Checking

**Average Balance Per Account**

8

Escrow Ease

**Total Balances**

9

Escrow Ease

**Number of Client Accounts**

10

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

11

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**

12

Loan Mix Composition Total Balances

**September 30, 2006**

13

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

14

Fee Income 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 

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