|   | For                Immediate Release |
|--------|--------------------------------------|
|   | Date:                                | July                26, 2007 |
|   |                                 |   |   |
|   | Contact:                             | Mary                Beth Steiginga, |
|   |                                 | Assistant                Secretary |
|   |                                 |   | 630                Godwin Avenue |
|   |                                 |   | Midland                Park, NJ 07432 |
|   |                                 |   | 201-                444-7100 |

**PRESS      RELEASE**

**Stewardship      Financial Corporation Announces**

**Record      Earnings for the Second Quarter, 2007**

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*This      information disclosed in this document contains certain “forward looking      statements” within the meaning of the Private Securities Litigation Reform Act      of 1995, and may be identified by the use of such words as “believe,” “expect,”“anticipate,” “should,” “plan,” “estimate,” and “potential.”  Examples      of forward looking statements include, but are not limited to, estimates with      respect to the financial condition, results of operations and business of the      Corporation that are subject to various factors which could cause actual results      to differ materially from these estimates.  These factors include:      changes in general, economic and market conditions, legislative and regulatory      conditions, or the development of an interest rate environment that adversely      affects the Corporation’s interest rate spread or other income anticipated from      operations and investments.*

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| **Stewardship                Financial Corporation**            |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
| **Financial                Highlights**                         |   |
| **(unaudited)**                                                 |   |
| (In                thousands, except per share data)            |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   | **Six                      Months Ended**   |   |   | **Three                Months Ended**  |   |
|                                                                                                                   |   | **June                30,**   |   |   | **June                30,**   |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                   |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| **Selected                Operating Data:**                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                                   |   | $ | 16,049 |   |   | $ | 14,318 |   |   | $ | 8,117 |   |   | $ | 7,334 |   |
| Total                interest expense                                                                                  |   |   | 6,574 |   |   |   | 4,879 |   |   |   | 3,315 |   |   |   | 2,572 |   |
| Net                interest income before provision                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      for                loan loss                                                             |   |   | 9,475 |   |   |   | 9,439 |   |   |   | 4,802 |   |   |   | 4,762 |   |
| Provision                for loan loss                                                                                 |   |   | 190 |   |   |   | 160 |   |   |   | 180 |   |   |   | 110 |   |
| Net                interest income after provision                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      for                loan loss                                                             |   |   | 9,285 |   |   |   | 9,279 |   |   |   | 4,622 |   |   |   | 4,652 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                income                                                                                      |   |   | 2,502 |   |   |   | 1,902 |   |   |   | 1,506 |   |   |   | 1,032 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest                expense                                                                                     |   |   | 8,177 |   |   |   | 7,641 |   |   |   | 4,182 |   |   |   | 3,863 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income tax expense                                                                        |   |   | 3,610 |   |   |   | 3,540 |   |   |   | 1,946 |   |   |   | 1,821 |   |
| Income                tax expense                                                                                      |   |   | 1,070 |   |   |   | 1,264 |   |   |   | 492 |   |   |   | 654 |   |
| Net                income                                                                                              |   | $ | 2,540 |   |   | $ | 2,276 |   |   | $ | 1,454 |   |   | $ | 1,167 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                                                                                |   | $ | 0.51 |   |   | $ | 0.45 |   |   | $ | 0.29 |   |   | $ | 0.23 |   |
| Diluted                earnings per share                                                                              |   | $ | 0.50 |   |   | $ | 0.45 |   |   | $ | 0.29 |   |   | $ | 0.23 |   |
|                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                  |   | **At                June 30,** |    |
|-------------------------------------------------------|--------|--------------------------------|---------|
|                                                  |   | **2007**                       |    |   | **2006** |   |
| **Selected                Financial Data:**           |   |                           |    |   |   |   |
| Total                assets                           |   | $                              | 538,837 |   |   | $ | 495,367 |   |
| Total                loans, net of deferred loan fees |   |                           | 383,653 |   |   |   | 359,804 |   |
| Allowance                for loan losses              |   |                           | 4,181   |   |   |   | 4,011 |   |
| Total                deposits                         |   |                           | 451,478 |   |   |   | 418,956 |   |
| Stockholders'                equity                   |   |                           | 38,614  |   |   |   | 35,029 |   |

|                                                                                                                                               |   | **At                or for the six month period ended** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                                                                               |   | **June                30,**                             |   |
|                                                                                                                                               |   | **2007**                                                |   |   | **2006** |   |
| **Selected                Financial Ratios:**                                                                                                      |   |                                                    |   |   |   |   |
| Annualized                return on average assets (ROA)                                                                                           |   |                                                    | 0.99   | % |   |   | 0.95 | % |
| Annualized                return on average equity (ROE)                                                                                           |   |                                                    | 13.41  | % |   |   | 13.36 | % |
| Tier                1 equity to total assets                                                                                                       |   |                                                    | 8.47   | % |   |   | 8.48 | % |
| Book                value per share                                                                                                                |   | $                                                       | 7.65   |   |   | $ | 6.95 |   |
|                                                                                                                                               |   |                                                    |   |   |   |   |   |   |
|                                                                                                                                               |   |                                                    |   |   |   |   |   |   |
| All                share data has been restated to include the effect of a 5% stock                dividend                paid in November, 2006. |   |                                                    |   |   |   |