For
      Immediate ReleaseDate:
            May
      1, 2008Contact:
            Mary
      Beth Steiginga630
      Godwin AvenueMidland
      Park, NJ 07432201-444-7100








PRESS
RELEASE





Stewardship
Financial Corporation Announces


Quarterly
Earnings for the First Quarter 2008





Midland
Park,  NJ – May 1, 2008 – Stewardship Financial Corporation
(NASDAQ:SSFN), parent of Atlantic Stewardship Bank, announced today net income
for the three (3) months ended March 31, 2008, of $1.06 million, or $0.20 basic
net income per share, as compared to net income of $1.09 million, or $0.21 basic
net income per share for the same three (3) month period in 2007.




Diluted
net income per share was $0.20 for the quarter ended March 31, 2008 and March
31, 2007.  Per share data has been restated to include the effect of a
5% stock dividend paid in November 2007.





Stewardship
Financial Corporation’s total assets reached $590.2 million at March 31, 2008,
compared to $520.5 million at March 31, 2007, resulting in growth of
13.4%.  Total gross loans increased 14.8% to $425.4 million at March
31, 2008, compared to $370.6 million a year ago.  Total deposits were
$476.6 million at March 31, 2008, compared to $439.7 million a year ago,
resulting in growth of 8.4%.  Total stockholders’ equity increased
10.6% to $42.1 million at March 31, 2008, compared to $38.1 million a year
ago.





Stewardship
Financial Corporation’s President and Chief Executive Officer Paul Van
Ostenbridge stated, “We continue to operate in an extremely challenging economic
and interest rate environment.  We are pleased to report that we have
not been directly involved in any of the subprime lending markets and our credit
quality continues to be strong.  Although our three new branches
opened in 2007 are still in their infancy and have yet to generate income to the
bottom line, we are encouraged by the core deposit growth being achieved and are
excited to be reaching new deposit and loan customers.  We continue to
see strong growth in our commercial and commercial real estate lending
portfolio.”





Stewardship
Financial Corporation’s subsidiary, the Atlantic Stewardship Bank, has banking
offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock,
Ridgewood, Waldwick, Wayne (3), Westwood and Wyckoff, New Jersey.  The
bank is known for tithing 10% of its pre-tax profits to Christian and local
charities, and serves both individuals and businesses.  Visit our
website at www.asbnow.com for additional information regarding our products and
services.


The
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 CorporationFinancial
      Highlights(unaudited)(In
      thousands, except per share data)Three
      Months EndedMarch
      31,2008
            
            
            2007Selected
      Operating Data:Total
      interest income
            
            $
            8,657
            
            
            $
            7,932Total
      interest expense
            
            
            3,495
            
            
            
            3,259Net
      interest income before provisionfor
      loan loss
            
            
            5,162
            
            
            
            4,673Provision
      for loan loss
            
            
            100
            
            
            
            10Net
      interest income after provisionfor
      loan loss
            
            
            5,062
            
            
            
            4,663Gains
      on sales of mortgage loans
            
            
            55
            
            
            
            89Other
      noninterest income
            
            
            921
            
            
            
            907Total
      other income
            
            
            976
            
            
            
            996Noninterest
      expense
            
            
            4,479
            
            
            
            3,995Income
      before income tax expense
            
            
            1,559
            
            
            
            1,664Income
      tax expense
            
            
            499
            
            
            
            578Net
      income
            
            $
            1,060
            
            
            $
            1,086Basic
      earnings per share
            
            $
            0.20
            
            
            $
            0.21Diluted
      earnings per share
            
            $
            0.20
            
            
            $
            0.20


At
      March 31,2008
            
            
            2007Selected
      Financial Data:Total
      assets
            
            $
            590,233
            
            
            $
            520,489Total
      loans, net of deferred loan fees
            
            
            425,357
            
            
            
            370,554Allowance
      for loan losses
            
            
            4,571
            
            
            
            4,093Total
      deposits
            
            
            476,567
            
            
            
            439,682Stockholders'
      equity
            
            
            42,138
            
            
            
            38,108At
      or for thethree
      month period endedMarch
      31,2008
            
            
            2007Selected
      Financial Ratios:Annualized
      return on average assets (ROA)
            
            
            0.74
            %
            
            
            0.85
            %Annualized
      return on average equity (ROE)
            
            
            10.29
            %
            
            
            11.62
            %Tier
      1 equity to total assets
            
            
            8.33
            %
            
            
            8.67
            %Book
      value per share
            
            $
            7.93
            
            
            $
            7.23




All share
data has been restated to include the effects of a 5% stock dividend paid in
November 2007.




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