**SECURITIESAND
      EXCHANGE
      COMMISSION**


**WASHINGTON,
      D.C.  20549**





**FORM
      10-K**





(Mark
      One)


(X)           ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934








For
      the
      fiscal year ended December 31, 2006








(  )           TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For
      the
      transition period from __________ to ___________








Commission
      file number 0-21855





**Stewardship
                  Financial Corporation**(Exact
                  name of registrant as specified in its
                  charter)





**New
                  Jersey**
              **22-3351447**(State
                  of other jurisdiction
              (I.R.S.
                  Employerof
                  incorporation or organization)
              Identification
                  No.)**630
                  Godwin Avenue, Midland Park, NJ**
              **07432**(Address
                  of principal executive offices)
              (Zip
                  Code)





Registrant’s
      telephone number, including area code:  (201) 444-7100





Securities
      registered pursuant to Section 12(b) of the
      Act:   None








Securities
      registered under Section 12(g) of the Act:





**Common
                  Stock, no par value**(Title
                  of class)





Indicate
      by check mark if the registrant is a well-known seasoned issuer, as defined
      in
      Rule 405 of the Securities Act.


Yes
      (     )    No
      (  X   )





Indicate
      by check mark if the registrant is not required to file reports pursuant to
      Section 13 or Section 15(d) of the Act.


Yes
      (     )    No
      (  X  )





**Note
      –**Checking the box above will not relieve any registrant required to
      file reports pursuant to Section 13 or 15(d) of the Exchange Act from their
      obligations under those Sections.





Indicate
      by check mark whether the Registrant: (1) has filed reports required to be
      filed
      by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.  Yes   ( X
      )   No  (    )












Indicate
      by check mark if disclosure of delinquent filers pursuant to Item 405 of
      Regulation S-K is not contained herein, and will not be contained, to the best
      of registrant’s knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form 10-K or any amendment to
      this
      Form 10-K. (  )





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer.  See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange
      Act.  (Check one):


Large
                accelerated filer (     )
            Accelerated
                filer (     )
            Non-accelerated
                filer ( X )





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Act).  Yes
      (     )   No (
      X  )





The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates of the registrant, as of June 30, 2006 was $
      54,791,000.





As
      of  March 26, 2007  5,019,729 shares of the registrant’s
      common stock were outstanding.












**DOCUMENTS
      INCORPORATED BY REFERENCE**








Item
                    6
                Selected
                    Financial Data
                Registrant’s
                    Annual Report to Shareholdersunder
                    the caption “Consolidated FinancialSummary
                    of Selected Financial Data.”Item
                    7
                Management’s
                    Discussion
                Registrant’s
                    Annual Report to Shareholdersand
                    Analysis of Financial
                under
                    the caption “Management’s DiscussionCondition
                    and Results
                and
                    Analysis of Financial Condition andof
                    Operations
                Results
                    of Operations.”Item
                    7A
                Quantitative
                    and Qualitative
                Registrant’s
                    Annual Report to ShareholdersDisclosures
                    About Market
                under
                    the caption “Management’s DiscussionRisk
                and
                    Analysis of Financial Condition andResults
                    of Operations – Market Risk”.Item
                    8
                Financial
                    Statements and
                Registrant’s
                    Annual Report to  ShareholdersSupplementary
                    Data
                under
                    the caption “Consolidated Statements ofFinancial  Condition.”Item
                    10
                Directors
                    and Executive
                Proxy
                    Statement for 2007 Annual MeetingOfficers
                    of the Company;
                of
                    Shareholders under the caption,Compliance
                    with Section
                “Proposal
                    I – Election of Directors”, “Senior Executive16(a)
                    of the Exchange Act
                Officers”
                    and “Compliance with Section 16(a) of theSecurities
                    Exchange Act of 1934, to be filed no laterthan
                    April 30, 2007.Item
                    11
                Executive
                    Compensation
                Proxy
                    Statement for 2007 Annual Meetingof  Shareholders
                    under the captions,“Compensation
                    Discussion and Analysis”and
                    “Executive Compensation,” to be filedno
                    later than April 30, 2007.Item
                    12
                Security
                    Ownership of
                Proxy
                    Statement for 2007 Annual MeetingCertain
                    Beneficial Owners
                of
                    Shareholders under the caption, “Stockand
                    Management
                Ownership
                    of Management and PrincipalShareholders,”
                    to be filed no later thanApril
                    30, 2007.Item
                    13
                Certain
                    Relationships and
                Proxy
                    Statement for 2007 Annual MeetingRelated
                    Transactions
                of
                    Shareholders under the caption, “CertainRelationships
                    and Related Transactions,” to befiled
                    no later than April 30, 2007.Item
                    14
                Principal
                    Accountant
                Proxy
                    Statement for 2007 Annual MeetingFees
                    and Services
                of
                    Shareholders under the Captions,“Independent
                  Auditors”
                  and
                  “FeesBilled
                    by Accounting FirmsDuring
                    Fiscal 2006 and Fiscal2005,”
                    to be filed no later thanApril
                    30, 2007.
  
 
 
 **Part
        I**
 
 **Item
        1  -  Business**
 
 General
 
 Stewardship
        Financial Corporation (the
“Corporation” or “Registrant”) is a one-bank holding company, which was
        incorporated under the laws of the State of New Jersey in January 1995 to
        serve
        as a holding company for Atlantic Stewardship Bank (the “Bank”).  The
        Corporation was organized at the direction of the Board of Directors of the
        Bank
        for the purpose of acquiring all of the capital stock of the Bank (the
“Acquisition”).  Pursuant to the New Jersey Banking Act of 1948, as
        amended (the “New Jersey Banking Act”), and pursuant to approval of the
        shareholders of the Bank, the Corporation acquired the Bank and became its
        holding company on November 22, 1996.  As part of the Acquisition,
        shareholders of the Bank received one share of common stock, no par value
        (“Common Stock”) of the Corporation for each outstanding share of the common
        stock of the Bank.  The only significant activity of the Corporation
        is ownership and supervision of the Bank.
 
 The
        Bank is a commercial bank formed
        under the laws of the State of New Jersey on April 26, 1984.  At
        December 31, 2006, the Bank operated from its main office at 630 Godwin Avenue,
        Midland Park, New Jersey, and its nine branches located at 386 Lafayette
        Avenue,
        Hawthorne, New Jersey, 1111 Goffle Road, Hawthorne, New Jersey, 190 Franklin
        Avenue, Ridgewood, New Jersey, 2 Changebridge Road, Montville, New Jersey,
        249
        Newark Pompton Turnpike, Pequannock, New Jersey, 64 Franklin Turnpike, Waldwick,
        New Jersey, 87 Berdan Avenue, Wayne, New Jersey, 400 Hamburg Turnpike, Wayne,
        New Jersey and 311 Valley Road, Wayne, New Jersey.  The Bank operates
        ATM machines at all of its branches except its Lafayette Avenue, Hawthorne
        branch and operates an offsite branch in the Christian Health Care Center,
        Wyckoff, New Jersey and in our former branch location at 30 Franklin Turnpike,
        Waldwick, New Jersey.  During the first quarter of 2007 the Bank
        opened a tenth branch at 378 Franklin Avenue, Wyckoff, New Jersey and closed
        its
        ATM at the former branch location at 30 Franklin Turnpike, Waldwick, New
        Jersey.
 
 The
        Corporation is subject to the
        supervision and regulation of the Board of Governors of the Federal Reserve
        System (the “FRB”).  The Bank’s deposits are insured by the Bank
        Insurance Fund (“BIF”) of the Federal Deposit Insurance Corporation (“FDIC”) up
        to applicable limits.  The operations of the Corporation and the Bank
        are subject to the supervision and  regulation of the FRB, FDIC and
        the New Jersey Department of Banking and Insurance (the
“Department”).  The principal executive offices of the Corporation are
        located at 630 Godwin Avenue, Midland Park, New Jersey 07432, and the telephone
        number is (201) 444-7100.  Stewardship Investment Corp. is a
        wholly-owned non-bank subsidiary of the Bank, whose primary business is to
        own
        and manage the Bank’s investment portfolio.  Stewardship Realty, LLC
        is a subsidiary of the Bank, whose primary business is to own and manage
        property at 612 Godwin Avenue, Midland Park, New Jersey.  In addition
        to the Bank, in 2003, the Corporation formed a second subsidiary, Stewardship
        Statutory Trust I for the purpose of issuing trust preferred
        securities.
 
 Business
        of the Corporation
 
 The
        Corporation’s primary business is
        the ownership and supervision of the Bank.  The Corporation, through
        the Bank, conducts a traditional commercial banking business, and offers
        services including personal and business checking accounts and time deposits,
        money market accounts and regular savings accounts.  The Corporation
        structures its specific services and charges in a manner designed to attract
        the
        business of the small and medium sized business and professional community
        as
        well as that of individuals residing, working and shopping in Bergen, Morris
        and
        Passaic counties, New Jersey.  The Corporation engages in a wide range
        of lending activities and offers commercial, consumer, mortgage, home equity
        and
        personal loans.
 
 In
        addition, in forming the Bank, the
        members of the Board of Directors envisioned a community-based institution
        which
        would serve the local communities surrounding its branches, while also providing
        a return to its shareholders.  This vision has been reflected in the
        Bank’s tithing policy, under which the Bank tithes 10% of its pre-tax profits
        to
        worthy Christian organizations and civic organizations in the communities
        where
        the Bank maintains branches.
 
 Service
        Area
 
 The
        Corporation’s service area
        primarily consists of the Bergen, Passaic and Morris Counties in the New
        Jersey
        market, although the Corporation makes loans throughout New
        Jersey.  At December 31, 2006, the Corporation operated its main
        office in Midland Park, New Jersey and nine existing branch offices in
        Hawthorne, Ridgewood, Montville, Pequannock, Waldwick and Wayne, New
        Jersey.
 
 
 
 Competition
 
 The
        Corporation competes for deposits
        and loans with commercial banks, thrifts and other financial institutions,
        many
        of which have greater financial resources than the Corporation.  Many
        large financial institutions in New York City and other parts of New Jersey
        compete for the business of New Jersey residents and companies located in
        the
        Corporation’s service area.  Certain of these institutions have
        significantly higher lending limits than the Corporation and provide services
        to
        their customers that the Corporation does not offer.
 
 Management
        believes the Corporation is
        able to compete on a substantially equal basis with its competitors because
        it
        provides responsive personalized services through management’s knowledge and
        awareness of the Corporation’s service area, customers and
        business.
 
 Employees
 
 At
        December 31, 2006, the Corporation
        employed 106 full-time employees and 34 part-time employees.  None of
        these employees is covered by a collective bargaining agreement and the
        Corporation believes that its employee relations are good.
 
 **Supervision
        and Regulation**
 
 Bank
        holding companies and banks are
        extensively regulated under both federal and state law.  These laws
        and regulations are intended to protect depositors, not
        stockholders.  To the extent that the following information describes
        statutory and regulatory provisions, it is qualified in its entirety by
        reference to the particular statutory and regulatory provisions and is not
        intended to be an exhaustive description of the statutes or regulations
        applicable to the Corporation’s business.  Any change in the
        applicable law or regulation may have a material effect on the business and
        prospects of the Corporation and the Bank.
 
 Regulation
        of the Corporation
 
 *BANK
        HOLDING COMPANY ACT.*As a bank holding company registered under
        the Bank Holding Company Act of 1956, as amended (the “BHCA”), the Corporation
        is subject to the regulation and supervision of the FRB.  The
        Corporation is required to file with the FRB annual reports and other
        information showing that its business operations and those of its subsidiaries
        are limited to banking, managing or controlling banks, furnishing services
        to or
        performing services for its subsidiaries or engaging in any other activity
        which
        the FRB determines to be so closely related to banking or managing or
        controlling banks as to be properly incident thereto.
  The
        BHCA requires, among other things,
        the prior approval of the FRB in any case where a bank holding company proposes
        to (i) acquire all or substantially all of the assets of any other bank,
        (ii)
        acquire direct or indirect ownership or control of more than 5% of the
        outstanding voting stock of any bank (unless it owns a majority of such bank’s
        voting shares), or (iii) merge or consolidate with any other bank holding
        company.  The FRB will not approve any merger, acquisition, or
        consolidation that would have a substantially anti-competitive effect, unless
        the anti-competitive impact of the proposed transaction is clearly outweighed
        by
        a greater public interest in meeting the convenience and needs of the community
        to be served.  The FRB also considers capital adequacy and other
        financial and managerial resources and future prospects of the companies
        and the
        banks concerned, together with the convenience and needs of the community
        to be
        served.
 
 Additionally,
        the BHCA prohibits a bank
        holding company, with certain limited exceptions, from (i) acquiring or
        retaining direct or indirect ownership or control of more than 5% of the
        outstanding voting stock of any company which is not a bank or bank holding
        company, or (ii) engaging directly or indirectly in activities other than
        those
        of banking, managing or controlling banks, or performing services for its
        subsidiaries; unless such non-banking business is determined by the FRB to
        be so
        closely related to banking or managing or controlling banks as to be properly
        incident thereto.  In making such determinations, the FRB is required
        to weigh the expected benefits to the public, such as greater convenience,
        increased competition or gains in efficiency, against the possible adverse
        effects, such as undue concentration of resources, decreased or unfair
        competition, conflicts of interest, or unsound banking practices.
 
 There
        are a number of obligations and
        restrictions imposed on bank holding companies and their depository institution
        subsidiaries by law and regulatory policy that are designed to minimize
        potential loss to the depositors of such depository institutions and the
        FDIC
        insurance funds in the event the depository institution becomes in danger
        of
        default.  Under a policy of the FRB with respect to bank holding
        company operations, a bank holding company is required to commit resources
        to
        support such institutions in circumstances where it might not do so absent
        such
        policy.  The FRB also has the
 
 
 
 authority
        under the BHCA to require a bank holding company to terminate any activity
        or to
        relinquish control of a non-bank subsidiary upon the FRB’s determination that
        such activity or control constitutes a serious risk to the financial soundness
        and stability of any bank subsidiary of the bank holding company.
 
 CAPITAL
        ADEQUACY GUIDELINES FOR BANK
        HOLDING COMPANIES.  The FRB has adopted risk-based capital guidelines
        for bank holding companies.  The risk-based capital guidelines are
        designed to make regulatory capital requirements more sensitive to differences
        in risk profiles among banks and bank holding companies, to account for
        off-balance sheet exposure, and to minimize disincentives for holding liquid
        assets.  Under these guidelines, assets and off-balance sheet items
        are assigned to broad risk categories each with appropriate
        weights.  The resulting capital ratios represent capital as a
        percentage of total risk-weighted assets and off-balance sheet
        items.
 
 The
        risk-based guidelines apply on a
        consolidated basis to bank holding companies with consolidated assets of
        $150
        million or more.  The minimum ratio of total capital to risk-weighted
        assets (including certain off-balance sheet activities, such as standby letters
        of credit) is 8%.  At least 4% of the total capital is required to be
“Tier I” capital, consisting of common stockholders’ equity and certain
        preferred stock, less certain goodwill items and other intangible
        assets.  The remainder, “Tier II Capital,” may consist of (a) the
        allowance for loan losses of up to 1.25% of risk-weighted assets, (b) excess
        of
        qualifying preferred stock, (c) hybrid capital instruments, (d) debt, (e)
        mandatory convertible securities, and (f) qualifying subordinated
        debt.  Total capital is the sum of Tier I and Tier II capital less
        reciprocal holdings of other banking organizations’ capital instruments,
        investments in unconsolidated subsidiaries and any other deductions as
        determined by the FRB (determined on a case-by-case basis or as a matter
        of
        policy after formal rule-making).
 
 Bank
        holding company assets are given
        risk-weights of 0%, 20%, 50%, and 100%.  In addition, certain
        off-balance sheet items are given similar credit conversion factors to convert
        them to asset equivalent amounts to which an appropriate risk-weight will
        apply.  These computations result in the total risk-weighted
        assets.  Most loans are assigned to the 100% risk category, except for
        performing first mortgage loans fully secured by residential property which
        carry a 50% risk-weighting. Most investment securities (including, primarily,
        general obligation claims of states or other political subdivisions of the
        United States) are assigned to the 20% category, except for municipal or
        state
        revenue bonds, which have a 50% risk-weight, and direct obligations of the
        U.S.
        treasury or obligations backed by the full faith and credit of the U.S.
        Government, which have a 0% risk-weight.  In converting off-balance
        sheet items, direct credit substitutes including general guarantees and standby
        letters of credit backing nonfinancial obligations, and undrawn commitments
        (including commercial credit lines with an initial maturity of more than
        one
        year) have a 50% risk-weighting.  Short term commercial letters of
        credit have a 20% risk-weighting and certain short-term unconditionally
        cancelable commitments have a 0% risk-weighting.
 
 In
        addition to the risk-based capital
        guidelines, the FRB has adopted a minimum Tier I capital (leverage) ratio,
        under
        which a bank holding company must maintain a minimum level of Tier I capital
        to
        average total consolidated assets of at least 3% in the case of a bank holding
        company that has the highest regulatory examination rating and is not
        contemplating significant growth or expansion.  All other bank holding
        companies are expected to maintain a leverage ratio of at least 100 to 200
        basis
        points above the stated minimum.
 
 
 *FINANCIAL
        SERVICES MODERNIZATION LEGISLATION.*On November 12, 1999,
        President Clinton signed into law the Gramm-Leach-Bliley Financial Services
        Modernization Act of 1999 (“FSMA”).  The passage of the FSMA removes
        the barriers to affiliations among financial service companies by repealing
        restrictions imposed under the Glass-Steagall Act of 1933 on banks affiliating
        with securities firms and by creating a new financial holding company (“FHC”)
        under the BHCA.  A company may form an FHC if all of its insured
        depository institution subsidiaries are considered well-capitalized and
        well-managed, and hold a satisfactory rating under the Community Reinvestment
        Act of 1977, as amended (“CRA”).  An FHC can engage in a prescribed
        list of financial services, including insurance and securities underwriting
        and
        agency activities, merchant banking, insurance company portfolio investment
        activities and “complementary” financial activities.
 
 To
        insure consistency in the treatment
        of banks and other financial institutions, FSMA reorganizes regulatory authority
        of federal agencies over securities and investment activities.
 
 In
        the area of insurance, FSMA
        designates the insurance products that banks and subsidiaries may provide,
        prohibits national banks from underwriting or selling title insurance if
        they
        did not actively conduct those activities before FSMA and permits national
        banks
        to sell title insurance in states where state banks are specifically authorized
        to do so.  FSMA requires Federal banking agencies to prescribe
        consumer protection regulations for insurance sales by banks.  FSMA
        preempts state laws that interfere with affiliations between banks and insurance
        companies.  It also initiates a process for creating a uniformity in
        licensing of insurance agents on a national level.
 
 
 
 
 FSMA
        also reinforces the barrier
        separating banking from general commerce by preventing organizations from
        applying to the Office of Thrift Supervision to form a unitary holding company
        after May 4, 1999.  All existing unitaries can continue to operate,
        regardless of current ownership but these unitaries can only be sold to
        financial companies.
 
 In
        addition to enabling banks and their
        holding companies to conduct a wide range of financial activities, the FSMA
        also
        contained a number of privacy requirements with which banks and other financial
        institutions must comply.  Under the FSMA, all financial institutions
        must adopt a privacy policy and make its policy known to those who became
        new
        customers and provide annual disclosure of its policy to all of its
        customers.  The Bank had to provide initial privacy notices to all
        existing customers by July 1, 2001.  Prior to disclosing a consumers’
nonpublic personal information (not covered by an exception) with nonaffiliated
        third parties, financial institutions must provide a reasonable means and
        opportunity to opt out of having information shared.  The exceptions
        include disclosures of nonpublic personal information: (i) made in connection
        with certain processing and servicing transactions; (ii) with the consent,
        or at
        the direction, of a customer or consumer; (iii) to protect against potential
        fraud or unauthorized transactions; (iv) to respond to judicial process;
        and (v)
        to provide the information to an employee of the institution who happens
        also to
        be an employee of a nonaffiliated third party.
 
 The
        FSMA also required the issuance of
        regulations establishing standards governing the administrative, technical
        and
        physical safeguards of customer information.  By July 1, 2001, all
        financial institutions had to have an information security
        program.  Institutions are required to identify and assess the risks
        that may threaten customer information, develop a written plan containing
        policies and procedures to manage and control these risks, implement and
        test
        the plan, and adjust the plan on a continuing basis to account for changes
        in
        technology, sensitivity of customer information, and internal or external
        threats to information security.
 
 Additional
        proposals to change the
        regulations and laws governing the banking and financial services industry
        are
        frequently introduced in the state legislatures, before various banking
        regulatory agencies, and in Congress.  The likelihood and timing of
        any such changes and the impact of such changes might have on the Corporation
        cannot be determined at this time.
 
 Regulation
        of the Bank
 
 As
        a New Jersey-chartered commercial
        bank, the Bank is subject to the regulation, supervision, and control of
        the
        Department.  As a FDIC-insured institution, the Bank is subject to
        regulation, supervision and control by the FDIC, an agency of the federal
        government.  The regulations of the FDIC and the Department impact
        virtually all activities of the Bank, including the minimum level of capital
        the
        Bank must maintain, the ability of the Bank to pay dividends, the ability
        of the
        Bank to expand through new branches or acquisitions, and various other
        matters.
 
 INSURANCE
        OF DEPOSITS.  The
        FDIC merged the Bank Insurance Fund (“BIF”) and the Savings Association
        Insurance Fund (“SAIF”) into the Deposit Insurance Fund (“DIF”) effective March
        31, 2006.  As part of this legislation several changes were
        implemented.  Effective April 1, 2006, the insurance coverage limit
        for retirement accounts was increased to $250,000 with all other accounts
        remaining at $100,000 coverage.
 
 The
        FDIC
        has established a risk-based assessment system for all insured depository
        institutions based upon: (i) the probability that the insurance fund will
        incur
        a loss with respect to the institution; (ii) the likely amount of the loss;
        and
        (iii) the revenue needs of the insurance fund.  In compliance with
        this mandate, FDIC has developed a matrix that sets the assessment premium
        for a
        particular institution in accordance with its capital level and overall rating
        by the primary regulator.  Under the matrix as currently in effect,
        the assessment rate ranges from 0 to 27 basis points of assessed
        deposits.  Banks with higher levels of capital and a low degree of
        supervisory concern are assessed lower premiums than banks with lower levels
        of
        capital or a higher degree of supervisory concern.  The Corporation
        was not required to pay an assessment under these guidelines.
 
 In
        addition to deposit insurance assessments, the FDIC is required to continue
        to
        collect payments for the servicing of the Financing Corporation (FICO)
        obligations that were issued in connection with the failure of certain savings
        and loan associations.  The Corporation paid $51,000 under this
        assessment.
 
 In
        November 2006, the FDIC adopted a new risk-based insurance assessment effective
        January 1, 2007, designed to base what banks pay for deposit insurance on
        the
        risk they pose.  In 2007, assessment rates will range between 5 cents
        per $100 of assessable deposits in the lowest risk to 43 cents per $100 of
        assessable deposits in the highest risk category.  An FDIC assessment
        credit for prior years’ contributions is expected to offset this assessment in
        2007.
 
 
 
 
 DIVIDEND
        RIGHTS.  Under the
        New Jersey Banking Act, a Bank may declare and pay dividends only if, after
        payment of the dividend, the capital stock of the Bank will be unimpaired
        and
        either the Bank will have a surplus of not less than 50% of its capital stock
        or
        the payment of the dividend will not reduce the Bank’s surplus.
  CHECK
        CLEARING FOR THE 21STCENTURY
        ACT.  (“Check 21 Act”)  Effective
        October 28, 2004, the Federal Reserve adopted final amendments to Regulation
        CC
        and its commentary to implement the Check 21 Act.  The Check 21 Act
        was enacted on October 28, 2003, and became effective on October 28,
        2005.
 
 To
        facilitate check truncation and
        electronic check exchange, the Check 21 Act authorizes a new negotiable
        instrument called a “substitute check” and provides that a properly prepared
        substitute check is the legal equivalent of the original check for all
        purposes.  A substitute check is a paper reproduction of the original
        check that can be processed just like the original check .  The Check
        21 Act does not require any bank to create substitute checks or to accept
        checks
        electronically.  The Federal Reserve’s amendments: (i) set forth the
        requirements of the Check 21 Act that apply to all banks, including those
        that
        choose not to create substitute checks; (ii) provide a model disclosure and
        model notices relating to substitute checks; and (iii) set forth bank
        endorsement and identification requirements for substitute
        checks.  The amendments to Regulation CC also clarify some existing
        provisions of the rule and commentary.
 
 USA
        PATRIOT ACT OF 2001. (“Patriot
        Act”)  -  On October 26, 2001, the Patriot Act was signed
        into law.  Enacted in response to the terrorist attacks in New York,
        Pennsylvania, and Washington D.C. on September 11, 2001, the Patriot Act
        is
        intended to strengthen the ability of U.S. law enforcement and the intelligence
        community to work cohesively to combat terrorism on a variety of
        fronts.  The potential impact of the Patriot Act on financial
        institutions of all kinds is significant and wide-ranging.  The
        Patriot Act contains sweeping anti-money laundering and financial transparency
        laws and requires various regulations, including, but not limited to: (a)
        due
        diligence requirements for financial institutions that administer, maintain,
        or
        manage private bank accounts or correspondent accounts for non-U.S. persons;
        (b)
        standards for verifying customer identification at account opening; (c) rules
        to
        promote cooperation among financial institutions,
 
 
 
 regulators
        and law enforcement entities in identifying parties that may be involved
        in
        terrorism or money laundering; (d) reports of nonfinancial trades and business
        filed with the Treasury Department’s Financial Crimes Enforcement Network for
        transactions exceeding $10,000; and (e) filing of suspicious activities reports
        by brokers and dealers if they believe a customer may be violating U.S. laws
        and
        regulations.
 
 
 
 
 
 
 
 
 
  **Item
        1A.  Risk Factors**
  
 Investments
        in the common stock of Stewardship Financial Corporation involve
        risk.  The following discussion highlights the risks management
        believes are material for our Corporation, but does not necessarily include
        all
        risks that we may face.
 
 **Our
        operations are subject to interest rate risk and changes in interest rates
        may
        negatively affect financial performance.**
 
 Our
        earnings and cash flows are largely dependent upon our net interest
        income.  Net interest income is the difference between interest income
        earned on interest-earning assets such as loans and securities and interest
        expense paid on interest-bearing liabilities such as deposits and borrowed
        money.  Changes in the general level of interest rates may have an
        adverse affect on our business, financial condition and results of
        operations.  Interest rates are highly sensitive to many factors that
        are beyond our control, including general economic conditions and the policies
        of governmental and regulatory agencies such as the Federal Reserve
        Bank.  Changes in monetary policy and interest rates can also
        adversely affect our ability to originate loans and deposits, fair value
        of
        financial assets and liabilities, and the average duration of our assets
        and
        liabilities.
 
 **Our
        allowance for loan losses may be insufficient.**
 
 There
        are
        inherent risks associated with our lending activities.  There are
        risks inherent in making any loan, including dealing with individual borrowers,
        nonpayment, uncertainties as to the future value of collateral and changes
        in
        economic and industry conditions.  We attempt to mitigate and manage
        credit risk through prudent loan underwriting and approval procedures,
        monitoring of loan concentrations and periodic independent review of outstanding
        loans.  We cannot be assured that these procedures will reduce credit
        risk inherent in the business.
 
 We
        make
        various assumptions and judgments about the collectibility of our loan
        portfolio, including the creditworthiness of our borrowers and the value
        of the
        real estate and assets serving as collateral for loan repayments.  In
        determining the size of our allowance for loan loss, we rely on our experience
        and our evaluation of economic conditions.  If our assumptions prove
        to be incorrect, our current allowance may not be sufficient to cover future
        loan losses and adjustments may be necessary to allow for different economic
        conditions or adverse developments in our portfolio.  Significant
        additions to our allowance for loan losses would materially decrease our
        net
        income.
 
 **Our
        profitability depends significantly on economic conditions.  Our
        geographic concentration in northern New Jersey could make us
        vulnerable to changes in local economic conditions.**
 
 Our
        success depends on the general economic conditions of the nation, the state
        of
        New Jersey, and the Northern New Jersey area.  Unlike larger banks
        that are more geographically diversified, we provide financial services to
        customers primarily in the market areas in which we operate.  The
        local economic conditions of these areas have a significant impact on our
        commercial, real estate and construction loans, the ability of our borrowers
        to
        repay these loans and the value of the collateral securing these
        loans.
 
 **Competition
        within the financial services industry could adversely affect our
        profitability.**
 
 We
        face
        strong competition from banks, other financial institutions, money market
        mutual
        funds and brokerage firms within the New York metropolitan area.  A
        number of these entities have substantially greater resources and lending
        limits, larger branch systems and a wider array of banking
        services.  If we are unsuccessful in competing effectively, we will
        lose market share and may suffer a reduction in our margins and suffer adverse
        consequences to the results of operations and financial condition.
 
 **Federal
        and State Regulations could restrict our business and non-compliance would
        result in penalties, litigation and damage to our
        reputation**
 
 We
        operate in a highly regulated environment and are subject to extensive
        regulation, supervision, and examination by the Federal Deposit Insurance
        Corporation (“FDIC”), the Board of Governors of the Federal Reserve System (the
“Federal Reserve”) and the State of New Jersey.  Such regulation and
        supervision of the activities in which an institution may engage is primarily
        intended for the protection of the depositors and the federal deposit insurance
        funds.  These regulations affect our lending practices, capital
        structure, investment practices, dividend policy and overall
        operations.  Changes to statutes, regulations, regulatory policies,
        and interpretations of policies and regulations could subject the Corporation
        to
        additional costs, limit the types of financial services and products we may
        offer and/or increase the ability of non-banks to offer
 
 
 
 competing
        financial services and products, among other things.  Failure to
        comply with law, regulations or policies could result in sanctions by regulatory
        agencies, civil money penalties and/or reputation damage, which could have
        a
        material adverse effect on our business, financial condition and results
        of
        operations.  While we have polices and procedures designed to prevent
        any such violations, there can be no assurances that such violations will
        not
        occur.
 
 **A
        breach of information security or compliance breach by one of our vendors
        could
        negatively affect our reputation and business.**
 
 We
        rely
        upon a variety of computing platforms and networks over the internet for
        the
        purpose of data processing, communication and information
        exchange.  Despite the safeguards instituted by management, such
        systems are susceptible to a breach of security.  In addition, we rely
        on the service of a variety of third-party vendors to meet our processing
        needs.  If confidential information is compromised, financial losses,
        costs and damages could occur.  Such costs and or losses could
        materially affect our earnings.  In addition the negative affect on
        our reputation could affect our ability to deliver products and services
        successfully to new and existing customers.
 
 **The
        trading volume of our stock remains low which could impact stock
        prices.**
 
 The
        trading history of our common stock has been characterized by relatively
        low
        trading volume.  The value of a shareholder’s investment may be
        subject to decreases due to the volatility of the price of our common stock
        which traded on the NASDAQ Bulletin Board. As of March 28, 2007, the
        Corporation’s
        Common Stock began trading on the NASDAQ Capital Stock Market.
 
 The
        market price of our common stock may be volatile and subject to fluctuations
        in
        response to numerous factors, including, but not limited to, the factors
        discussed in the other risk factors and the following:
 ·
              actual
                  or anticipated fluctuation in operating
                  results;
 ·
              changes
                  in interest rates;
 ·
              changes
                  in legal or regulatory environment;
 ·
              press
                  releases, publicity, or
                  announcements;
 ·
              changes
                  in expectation of our future financial
                  performance;
 ·
              future
                  sales of our common stock;
 ·
              changes
                  in economic conditions; and
 ·
              other
                  developments affecting our corporation or our
                  competitors
 
 These
        factors may adversely affect the trading price of our common stock, regardless
        of our actual operating performance, and could prevent a shareholder from
        selling common stock at or above the current market price.
 
 **We
        may not be able to pay dividends in the future in accordance with past
        practice.**
 
 The
        Corporation has traditionally paid a quarterly dividend to
        stockholders.  The payment of dividends is subject to legal and
        regulatory restrictions.  Any payment of dividends in the future will
        depend, in large part, on the Corporation’s earnings, capital requirements,
        financial condition and other factors considered relevant by the Corporation’s
        Board of Directors.
 
 **Item
        1B.  Unresolved Staff Comments**
 
 None
 
 
 
 
 **Item
        2.  Properties**
 
 The
        Corporation conducts its business
        through its main office located at 630 Godwin Avenue, Midland Park, New Jersey
        and its nine branch offices.  A tenth branch, located at 378 Franklin
        Avenue, Wyckoff, New Jersey opened for business in March 2007.  The
        property located at 612 Godwin Avenue is to be used for future administrative
        offices, pending the obtainment of all appropriate approvals and completing
        construction. The lease at 30 Franklin Turnpike was not renewed February
        28,
        2007.  The following table sets forth certain information regarding
        the Corporation’s properties as of December 31, 2006.
 
 Leased
                                            Date
                                                of LeaseLocation
                                            or
                                                Owned
                                            Expiration612
                                                Godwin Avenue
                                            Owned
                                            ---Midland
                                                Park, NJ630
                                                Godwin Avenue
                                            Owned
                                            ---Midland
                                                Park, NJ386
                                                Lafayette Avenue
                                            Owned
                                            ---Hawthorne,
                                                NJ1111
                                                Goffle Road
                                            Leased
                                            05/31/11Hawthorne,
                                                NJ2
                                                Changebridge Road
                                            Leased
                                            03/31/15Montville,
                                                NJ249
                                                Newark Pompton Turnpike
                                            Owned
                                            ---Pequannock,
                                                NJ190
                                                Franklin Avenue
                                            Leased
                                            09/30/07Ridgewood,
                                                NJ30
                                                Franklin Turnpike
                                            Leased
                                            02/28/07Waldwick,
                                                NJ64
                                                Franklin Turnpike
                                            Owned
                                            ---Waldwick,
                                                NJ87
                                                Berdan Avenue
                                            Leased
                                            06/30/09Wayne,
                                                NJ311
                                                Valley Road
                                            Leased
                                            11/30/08Wayne,
                                                NJ400
                                                Hamburg Turnpike
                                            Leased
                                            04/30/14Wayne,
                                                New Jersey378
                                                Madison Avenue
                                            Leased
                                            04/25/25Wyckoff,
                                                New Jersey
 
 
 **Item
        3  -  Legal Proceedings**
 
 The
        Corporation and the Bank are
        periodically parties to or otherwise involved in legal proceedings arising
        in
        the normal course of business, such as claims to enforce liens, claims involving
        the making and servicing of real property loans, and other issues incident
        to
        the Bank’s business.  Management does not believe that there is any
        pending or threatened proceeding against the Corporation or the Bank which,
        if
        determined adversely, would have a material effect on the business or financial
        position of the Corporation or the Bank.
 
 
 
 **Item
        4  -  Submission of Matters to a Vote of Security
        Holders**
 
 No
        matters were submitted for a vote of
        the Registrant’s shareholders during the fourth quarter of fiscal
        2006.
 
 **Part
        II**
 
 
 **Item
        5  -  Market for the Registrant’s Common Equity and Related
        Stockholder Matters and Issuer Purchases of Equity
        Securities**
 
 Until
        March 27, 2007, the Corporation’s
        Common Stock traded on the OTC Bulletin Board under the symbol
“SSFN”.  As of December 31, 2006, there were 982 shareholders of
        record of the Common Stock.  As of March 28, 2007, the Corporation’s
        Common Stock began trading on the Nasdaq Capital Stock Market.
 
 The
        following table sets forth the
        quarterly high and low bid prices of the Common Stock as reported on the
        OTC
        Bulletin Board for the quarterly periods presented.  The prices below
        reflect inter-dealer prices, without retail markup, markdown or commissions,
        and
        may not represent actual transactions.  The stock prices and cash
        dividends set forth below also reflect adjustments related to 5% stock dividends
        paid in November, 2006 and 2005, and a 4 for 3 stock split issued in July,
        2005
        respectively.
 
 
 Bid
                      
                      
                      CashHigh
                      
                      
                      Low
                      
                      
                      DividendYear
                          Ended December 31, 2006Fourth
                          quarter
                      
                      $
                      14.50
                      
                      
                      $
                      12.65
                      
                      
                      $
                      0.08Third
                          quarter
                      
                      
                      13.81
                      
                      
                      
                      12.38
                      
                      
                      
                      0.08Second
                          quarter
                      
                      
                      14.29
                      
                      
                      
                      12.38
                      
                      
                      
                      0.07First
                          quarter
                      
                      
                      15.24
                      
                      
                      
                      13.44
                      
                      
                      
                      0.07
 
 Year
        Ended December 31, 2005
 Fourth
                        quarter
                    
                    $
                    14.76
                    
                    
                    $
                    13.09
                    
                    
                    $
                    0.07Third
                        quarter
                    
                    
                    16.33
                    
                    
                    
                    14.29
                    
                    
                    
                    0.06Second
                        quarter
                    
                    
                    16.26
                    
                    
                    
                    12.99
                    
                    
                    
                    0.06First
                        quarter
                    
                    
                    14.29
                    
                    
                    
                    12.65
                    
                    
                    
                    0.06
 
 The
        Corporation may pay dividends as
        declared from time to time by the Corporation’s Board of Directors out of funds
        legally available therefore, subject to certain restrictions.  Since
        dividends from the Bank will be the Corporation’s main source of income, any
        restriction on the Bank’s ability to pay dividends will act as a restriction on
        the Corporation’s ability to pay dividends.  Under the New Jersey
        Banking Act, the Bank may not pay a cash dividend unless, following the payment
        of such dividend, the capital stock of the Bank will be unimpaired and (i)
        the
        Bank will have a surplus of no less than 50% of its capital stock or (ii)
        the
        payment of such dividend will not reduce the surplus of the Bank.  In
        addition, the Bank cannot pay dividends if doing so would reduce its capital
        below the regulatory imposed minimums.
 
 During
        fiscal 2006, the Corporation
        paid quarterly cash dividends totaling $0.30 per share for an annual dividend
        payout ratio of 32.2%.  During fiscal 2005, the Corporation paid
        quarterly cash dividends totaling $0.25 per share for an annual dividend
        payout
        ratio of 27.8%.
 
 **Item
        6  -  Selected Financial Data**
 
 The
        information required by this item
        is incorporated by reference from page A-2 of the Registrant’s Annual Report to
        Shareholders under the caption “Consolidated Financial Summary of Selected
        Financial Data.”
 
 
 **Item
        7  -  Management’s Discussion and Analysis of Financial
        Condition and Results of Operations**
 
 The
        information required by this item
        is incorporated by reference from page A-3 of the Registrant’s Annual Report to
        Shareholders under the caption “Management’s Discussion and Analysis of
        Financial Condition and Results of Operations.”
 
 
 
 
 
 **Item
        7A  -  Quantitative and Qualitative Disclosures About Market
        Risk**
 
 The
        information required by this item
        is incorporated by reference from page A-15 of the Registrant’s Annual Report to
        Shareholders under the caption “Management’s Discussion and Analysis of
        Financial Condition and Results of Operations – Market Risk.”
 
 **Item
        8  -  Financial Statements and Supplementary
        Data**
 
 The
        information required by this item
        is incorporated by reference from page A-22 of the Registrant’s Annual Report to
        Shareholders under the caption “Consolidated Statements of Financial
        Condition”
 
 **Item
        9  -  Changes in and Disagreements with Accountants on
        Accounting and**
 **Financial
        Disclosure**
 
 Information
        concerning changes in
        accountants will be included in the definitive Proxy Statement for the
        Corporation’s 2007
        Annual Meeting of Shareholders under the caption “Independent
        Auditors,”
        which is incorporated by reference. It is expected that such Proxy Statement
        will be filed with the Securities and Exchange Commission no later than April
        30, 2007.
 
 **Item
        9A  -  Controls and Procedures**
 
 **(a)           Evaluation
        of disclosure controls and procedures*.***
 
 Based
        on their evaluation as of the end
        of the period covered by this Annual Report on Form 10-K, our principal
        executive officer and principal financial officer have concluded that our
        disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c)
        under the Securities Exchange Act of 1934 (the “Exchange Act”)) are effective to
        ensure that information required to be disclosed by us in reports that we
        file
        or submit under the Exchange Act is recorded, processed, summarized and reported
        within the time periods specified in the Securities and Exchange Commission’s
        rules and forms.
  **(b)           Changes
        in internal controls.**
 
 There
        were no significant changes in
        our internal controls or in other factors that could significantly affect
        these
        controls subsequent to the date of their evaluation, including any corrective
        actions with regard to significant deficiencies and material
        weaknesses.
 
 **Part
        III**
 
 **Item
        10  -  Directors and Executive Officers of the
        Registrant**
 
 
 Information
        concerning directors and
        executive officers will be included in the definitive Proxy Statement for
        the
        Corporation’s 2007 Annual Meeting of Shareholders under the caption “Proposal I-
        Election of Directors” and “Senior Executive
        Officers.”
        Information concerning compliance with Section 16(a) of the Exchange
        Act
        will be included under the caption “Compliance with Section 16(a) of the
        Securities Act of 1934,” each of which is incorporated herein by
        reference.  It is expected that such Proxy Statement will be filed
        with the Securities and Exchange Commission no later than April 30,
        2007.
 
 Code
        of
        Ethics
 
 The
        Corporation has adopted a Code of
        Ethical Conduct for Senior Financial Managers that applies to its principal
        executive officer, principal financial officer, principal accounting officer,
        controller and any other person performing similar functions.  The
        Corporation’s Code of Ethical Conduct for Senior Financial Managers is posted on
        its website, www.asbnow.com.  The Corporation intends to satisfy the
        disclosure requirement under Item 5.05 of Form 8-K regarding an amendment
        to, or
        waiver from, a provision of its Code of Ethical Conduct for Senior Financial
        Managers by filing an 8-K and by posting such information on its
        website.
 
 Audit
        Committee and Audit Committee Financial Expert
 
 The
        members of our audit committee as
        of December 31, 2006 were Harold Dyer (Chairman), John L. Steen, Michael
        Westra
        and Howard Yeaton.  The Audit Committee determined that Michael Westra
        and Howard Yeaton were
 
 
 
 “audit
        committee financial experts” as defined by the Securities and Exchange
        Commission.   All members of our audit committee are
“independent” for purposes of Rule 4200(a)(15) of NASD’s listing
        standards.
  **Item
        11  -  Executive Compensation**
 
 Information
        concerning executive
        compensation will be included in the definitive Proxy Statement for the
        Corporation’s 2007 Annual Meeting of Shareholders under the captions
“Compensation Discussion and Analysis” and “Executive Compensation” which
        is incorporated herein by reference.  It is expected that such Proxy
        Statement will be filed with the Securities and Exchange Commission no later
        than April 30, 2007.
  **Item
        12  -  Security Ownership of Certain Beneficial Owners and
        Management**
 
 The
        following table provides
        information with respect to the equity securities that are authorized for
        issuance under our compensation plans as of December 31, 2006:
 
 **Equity
                                          Compensation Plan Information**Number
                                          of securities
                                        to
                                          be issued upon
                                        exercise
                                          of
                                        outstanding
                                          options,
                                        warrants
                                          and rights (a)
                                      
                                      Weighted-average
                                          exercise
                                        price
                                          of outstanding options,
                                        warrants
                                          and rights
                                      
                                      Number
                                          of
                                        securities
                                        remaining
                                        available
                                          for
                                        future
                                          issuance
                                        under
                                          equity
                                        compensation
                                        plans
                                          (excluding
                                        securities
                                          reflected
                                        in
                                          column (a))Equity
                                          compensation plans approved by security
                                          holders
                                      
                                      
                                      133,283
                                      
                                      
                                      
                                      9.01
                                      
                                      
                                      
                                      302,303Equity
                                          compensation plans not approved by security
                                          holders
                                      
                                      
                                      0
                                      
                                      
                                      
                                      0.00
                                      
                                      
                                      
                                      579,587Total
                                      
                                      
                                      133,283
                                      
                                      
                                      
                                      9.01
                                      
                                      
                                      
                                      925,470
 
 
 The
        equity compensation plans not
        approved by security holders are the Stock Bonus Plan and the Directors Stock
        Plan.  The Stock Bonus Plan is intended to provide incentives which
        will retain highly competent key management employees of the Corporation
        by
        providing them with a bonus in the form of shares of the common stock of
        the
        Corporation.  The Corporation has not granted shares under this plan
        since 1998.  The Director Stock Plan permits members of the Board of
        Directors to receive any monthly Board of Directors’ fees in shares of the
        Corporation’s common stock, rather than in cash.  The Corporation
        issued 2,026 shares from treasury stock and purchased 3,017 shares in the
        open
        market during 2006 for the benefit of the Director Stock Plan.
 
 Information
        concerning security ownership of certain beneficial owners and management
        will
        be included in the definitive Proxy Statement for the Corporation’s 2007 Annual
        Meeting of Shareholders under the caption “Stock Ownership of Management and
        Principal Shareholders,” which is incorporated herein by
        reference.  It is expected that such Proxy Statement will be filed
        with the Securities and Exchange Commission no later than April 30,
        2007.
 
 **Item
        13  -  Certain Relationships and Related
        Transactions**
 
 Information
        concerning certain
        relationships and related transactions will be included in the definitive
        Proxy
        Statement for the Corporation’s 2007 Annual Meeting of Shareholders under the
        caption “Certain Relationships and Related Transactions,” which is incorporated
        herein by reference.  It is expected that such Proxy Statement will be
        filed with the Securities and Exchange Commission no later than April 30,
        2007.
 
 
 
 
 
 **Item
        14  -  Principal Accountant Fees and
        Services**
 
 Information
        concerning principal
        accountant fees and services will be included in the definitive Proxy Statement
        for the Corporation’s 2007 Annual Meeting of Shareholders under the caption
“Fees Billed by Accountants During Fiscal 2006 and Fiscal 2005,” which is
        incorporated herein by reference.  It is expected that such Proxy
        Statement which will be filed with the Securities and Exchange Commission
        no
        later than April 30, 2007.




**Part
        IV**
 
 **Item
        15  -  Exhibits, Financial Statement
        Schedules**
 
 (a)  Exhibits
  Exhibit
                    Number
                  Description
                      of Exhibits3(i)
                  Certificate
                      of Incorporation of the Corporation (1)3(ii)
                  Bylaws
                      of the Corporation (1)10(i)
                  1995
                      Incentive Stock Option Plan (1)10(ii)
                  1995
                      Stock Option Plan for Non-Employee Directors (1)10(iii)
                  1995
                      Employee Stock Purchase Plan (2)10
                      (iv)
                  Stock
                      Bonus Plan (2)10
                      (v)
                  Stewardship
                      Financial Corporation Dividend Reinvestment Plan (3)10
                      (vi)
                  Stewardship
                      Financial Corporation Director Stock Plan (4)10(vii)
                  Amended
                      and Restated 1995 Stock Option Plan (5)10(viii)
                  Amended
                      and Restated Director Stock Plan (5)10(ix)
                  Dividend
                      Reinvestment Plan (6)10(x)
                  2001
                    Stock Option Plan For Non-Employee Directors (7)10(xi)
                  Dividend
                    Reinvestment Plan (8)10(xii)
                  2006
                    Stock Option Plan for Non-Employee Directors (9)13
                  Annual
                      Report to Shareholders for the year ended December 31,
                      200614
                  Code
                      of Ethics21
                  Subsidiaries
                      of the Registrant23.1
                  Consent
                      of Crowe Chizek and Company LLC23.2
                  Consent
                      of KPMG LLP31.1
                  Certification
                      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
                      Act of 2002.31.2
                  Certification
                      of Senior Vice President, Accounting pursuant to Section 302
                      of the
                      Sarbanes-Oxley Act of 2002.32.1
                  Certification
                      of Chief Executive Officer and Vice President, Accounting pursuant
                      to
                      Section 906 of the Sarbanes-Oxley Act of
                      2002.
 
 _________________________
 (1)
              Incorporated
                  by reference from Exhibits 5(B)(3)(i), 5(B)(3)(ii), 5(B)(3)(iii),
                  5(B)(10)(a), 5(B)(10)(b), 5(B)(21) from the Corporation’s Registration
                  Statement on Form 8-B, Registration No.  0-21855, filed December
                  10, 1996.
 
 (2)
              Incorporated
                  by reference from Exhibits 4(c) to 23(d) from the Corporation’s
                  Registration Statement on Form S-8, Registration No. 333-20793,
                  filed
                  January 31, 1997.
 
 (3)
              Incorporated
                  by reference from Exhibit 4(a) from the Corporation’s Registration
                  Statement on Form S-3, Registration No. 333-20699, filed January
                  30,
                  1997.
 
 (4)
              Incorporated
                  by reference from Exhibit 4(a) from the Corporation’s Registration
                  Statement on Form S-8, Registration No. 333-31245**,**filed
                  July 11, 1997.
 
 (5)           Incorporated
        by reference from Exhibits 10(vii) and 10(viii) from the
        Corporation’s
 Annual
        Report on Form 10-KSB, filed
        March 31, 1999.
 
 (6)           Incorporated
        by reference from Exhibit 4(a) from the Corporation’s Registration
        Statement
 on
        Form S-3, Registration No.
        333-54738, filed January 31, 2001.
 
 (7)
                Incorporated
                    by reference from Exhibit 4(b) from the Coporation’s Registration
                    Statement on Form S-8, Registration No. 333-87842, filed May
                    8,
                    2002.
 (8)
                Incorporated
                    by reference from Exhibit 4(a) from the Corporation’s Registration
                    Statement on Form S-3, Registration No. 333-133632, filed April
                    28,
                    2006.
 (9)
                Incorporated
                    by reference from Exhibit 5(a) from the Corporation’s Registration
                    Statement on Form S-8, Registration No. 333-135462, filed June
                    29,
                    2006.
  
 
 
 **SIGNATURES**
 
 Pursuant
        to the requirements of Section
        13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly
        caused this report to be signed on its behalf by the undersigned, thereunto
        duly
        authorized.
 
 
 STEWARDSHIP
                    FINANCIAL CORPORATIONBy
                    :
                /s/  Paul
                    Van OstenbridgePaul
                    Van OstenbridgeChief
                    Executive OfficerDated:  March
                    30, 2007
 
 Pursuant
        to the requirements of the
        Securities Exchange Act of 1934, this report has been signed below by the
        following persons on behalf of the registrant and in the capacities and on
        the
        dates indicated.
 
 
 Name
                  
                  Title
                  
                  Date/s/  Paul
                      Van Ostenbridge
                  
                  Chief
                      Executive Officer
                  
                  March
                      30, 2007Paul
                      Van Ostenbridge
                  
                  (Principal
                      Executive Officer)/s/  Julie
                      E. Holland
                  
                  Senior
                      Vice President, Accounting
                  
                  March
                      30, 2007Julie
                      E. Holland
                  
                  (Principal
                      FinancialOfficer
                      and PrincipalAccounting
                      Officer)/s/  Harold
                      Dyer
                  
                  Director
                  
                  March
                      30, 2007Harold
                      Dyer/s/  William
                      Hanse
                  
                  Chairman
                      of the Board
                  
                  March
                      30, 2007William
                      Hanse/s/  Margo
                      Lane
                  
                  Director
                  
                  March
                      30, 2007Margo
                      Lane/s/  Arie
                      Leegwater
                  
                  Director
                  
                  March
                      30, 2007Arie
                      Leegwater/s/  John
                      L. Steen
                  
                  Director
                  
                  March
                      30, 2007John
                      L. Steen/s/  Robert
                      Turner
                  
                  Secretary
                      and Director
                  
                  March
                      30, 2007Robert
                      Turner/s/  William
                      J. VanderEems
                  
                  Director
                  
                  March
                      30, 2007William
                      J. VanderEems/s/   Abe
                      Van Wingerden
                  
                  Vice
                      Chairman of the Board
                  
                  March
                      30, 2007Abe
                      Van Wingerden/s/  Michael
                      Westra
                  
                  Director
                  
                  March
                      30, 2007Michael
                      Westra/s/  Howard
                      Yeaton
                  
                  Director
                  
                  March
                      30, 2007Howard
                      Yeaton