|   | ý | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES |
|--------|--------|--------------------------------------------------------------------------|

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

| Stewardship      Financial Corporation                                                       |
|----------------------------------------------------------------------------------------------|
| (Exact      name of registrant as specified in its charter)                                  |
|                                                                                         |   |
| New      Jersey                                                                              | 22-3351447 |
| (State      or other jurisdiction of                                                         | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)                                                          |   |
|                                                                                         |   |
| 630      Godwin Avenue, Midland Park,  NJ                                          | 07432 |
| (Address      of principal executive offices)                                                | (Zip      Code) |
|                                                                                         |   |
| (201)  444-7100                                                                    |
| (Registrant’s      telephone number, including area code)                              |
|                                                                                         |
|                                                                                         |
| (Former      name, former address and former fiscal year, if changed since last      report) |

| Large      accelerated filer o                                                  | Accelerated      filer o                         |
|---------------------------------------------------------------------------------|--------------------------------------------------|
| Non-accelerated      filer o (Do      not check if a smaller reporting company) | Smaller      reporting company  ý |

----

D

|                                                                                                                                        | PAGE         |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|                                                                                                                                        | NUMBER       |
| PART      I  -  CONSOLIDATED FINANCIAL      INFORMATION                                                                 |         |
|                                                                                                                                        |         |
| ITEM 1  -   CONSOLIDATED FINANCIAL      STATEMENTS                                                                 |         |
|                                                                                                                                        |         |
| Consolidated Statements of Financial Condition at September 30,      2008 and December 31, 2007 (Unaudited)                                 | 1            |
|                                                                                                                                        |         |
| Consolidated Statements of Income for the Three and Nine Months      ended September 30, 2008 and 2007 (Unaudited)                          | 2            |
|                                                                                                                                        |         |
| Consolidated Statements of Cash Flows for the Nine Months ended      September 30, 2008 and 2007 (Unaudited)                                | 3 -      4   |
|                                                                                                                                        |         |
| Consolidated Statement of Changes in Stockholders’ Equity for      the Nine Months ended September 30, 2008 and 2007      (Unaudited) | 5            |
|                                                                                                                                        |         |
| Notes to Consolidated Financial Statements      (Unaudited)                                                                                 | 6 -      12  |
|                                                                                                                                        |         |
| ITEM 2  -   MANAGEMENT’S DISCUSSION      AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS  | 13      - 20 |
|                                                                                                                                        |         |
| ITEM 3 -   QUANTITATIVE AND QUALITATIVE      DISCLOSURE ABOUT MARKET RISK                                                    | 21           |
|                                                                                                                                        |         |
| ITEM 4 -    CONTROLS AND      PROCEDURES                                                                                | 21           |
|                                                                                                                                        |         |
| PART      II  -  OTHER INFORMATION                                                                                      |         |
|                                                                                                                                        |         |
| ITEM 4 – SUBMISSION OF MATTERS TO VOTE OF SECURITY      HOLDERS                                                                       | 22           |
|                                                                                                                                        |         |
| ITEM 6 – EXHIBITS                                                                                                                     | 22           |
|                                                                                                                                        |         |
| SIGNATURES                                                                                                                                  | 23           |
|                                                                                                                                        |         |
| EXHIBIT      INDEX                                                                                                                          | 24      -27  |
|                                                                                                                                        |         |

----

Index

| Stewardship      Financial Corporation and Subsidiary                                              |   |
|----------------------------------------------------------------------------------------------------|--------|
| Consolidated      Statements of Financial Condition                                                |   |
| (Unaudited)                                                                                        |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   | September      30, |   |   | December      31, |   |
|                                                                                               |   | 2008 |   |   | 2007 |   |
| Assets                                                                                             |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |
| Cash      and due from banks                                                                       |   | $ | 13,365,000 |   |   | $ | 11,789,000 |   |
| Other      interest-earning assets                                                                 |   |   | 124,000 |   |   |   | 143,000 |   |
|        Cash      and cash equivalents                           |   |   | 13,489,000 |   |   |   | 11,932,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Securities      available for sale                                                                 |   |   | 96,547,000 |   |   |   | 76,957,000 |   |
| Securities      held to maturity; estimated fair value of $35,029,000 (2008)      and              |   |   |   |   |   |   |   |   |
|           $41,508,000 (2007)                                                   |   |   | 35,646,000 |   |   |   | 41,189,000 |   |
| FHLB-NY      stock, at cost                                                                        |   |   | 2,856,000 |   |   |   | 1,983,000 |   |
| Loans,      net of allowance for loan losses of $5,930,000 (2008) and $4,457,000      (2007)       |   |   | 436,963,000 |   |   |   | 415,690,000 |   |
| Mortgage      loans held for sale                                                                  |   |   | 895,000 |   |   |   | 1,284,000 |   |
| Premises      and equipment, net                                                                   |   |   | 7,520,000 |   |   |   | 7,950,000 |   |
| Accrued      interest receivable                                                                   |   |   | 3,241,000 |   |   |   | 3,112,000 |   |
| Intangible      assets                                                                             |   |   | 46,000 |   |   |   | 70,000 |   |
| Bank      owned life insurance                                                                     |   |   | 8,517,000 |   |   |   | 8,273,000 |   |
| Other      assets                                                                                  |   |   | 4,417,000 |   |   |   | 3,465,000 |   |
|        Total      assets                                        |   | $ | 610,137,000 |   |   | $ | 571,905,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity                                                          |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Liabilities                                                                                        |   |   |   |   |   |   |   |   |
| Deposits:                                                                                          |   |   |   |   |   |   |   |   |
|     Noninterest-bearing                                                        |   | $ | 96,804,000 |   |   | $ | 101,993,000 |   |
|     Interest-bearing                                                           |   |   | 395,306,000 |   |   |   | 370,306,000 |   |
|         Total      deposits                                |   |   | 492,110,000 |   |   |   | 472,299,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Other      borrowings                                                                              |   |   | 46,575,000 |   |   |   | 28,645,000 |   |
| Subordinated      debentures                                                                       |   |   | 7,217,000 |   |   |   | 7,217,000 |   |
| Securities      sold under agreements to repurchase                                                |   |   | 16,297,000 |   |   |   | 17,283,000 |   |
| Accrued      interest payable                                                                      |   |   | 1,465,000 |   |   |   | 2,080,000 |   |
| Accrued      expenses and other liabilities                                                        |   |   | 4,714,000 |   |   |   | 3,291,000 |   |
|         Total      liabilities                             |   |   | 568,378,000 |   |   |   | 530,815,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                 |   |   | - |   |   |   | - |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Stockholders'      equity                                                                          |   |   |   |   |   |   |   |   |
| Common      stock, no par value; 10,000,000 shares authorized;                                     |   |   |   |   |   |   |   |   |
|     5,585,659      and 5,306,828 shares issued: 5,575,268 and 5,306,828shares  |   |   |   |   |   |   |   |   |
|     outstanding      at September 30, 2008 and December 31, 2007, respectively |   |   | 38,285,000 |   |   |   | 34,871,000 |   |
| Treasury      stock, 10,391 shares outstanding at September 30, 2008                               |   |   | (138,000 | ) |   |   | - |   |
| Retained      earnings                                                                             |   |   | 4,248,000 |   |   |   | 5,943,000 |   |
| Accumulated      other comprehensive income (loss)                                                 |   |   | (636,000 | ) |   |   | 276,000 |   |
|         Total      stockholders' equity                    |   |   | 41,759,000 |   |   |   | 41,090,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
|         Total      liabilities and stockholders' equity    |   | $ | 610,137,000 |   |   | $ | 571,905,000 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                                     |   |   |   |   |   |   |   |   |

----

Index

| Stewardship      Financial Corporation and Subsidiary |
|-------------------------------------------------------|
| Consolidated      Statements of Income                |
| (Unaudited)                                           |

|                                                                   |   | Three      Months Ended |      |   | Nine      Months Ended |   |
|------------------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                                   |   | September      30,      |      |   | September      30,     |   |
|                                                                   |   | 2008                    |      |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
| Interest      income:                                                  |   |                    |      |   |                   |   |   |   |   |   |   |   |
| Loans                                                                  |   | $                       | 7,217,000 |   |                   | $      | 7,004,000 |   |   | $ | 21,478,000 |   |   | $ | 20,289,000 |   |
| Securities      held to maturity                                       |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   |                    | 170,000   |   |                   |   | 227,000 |   |   |   | 560,000 |   |   |   | 691,000 |   |
| Non-taxable                                                            |   |                    | 210,000   |   |                   |   | 195,000 |   |   |   | 627,000 |   |   |   | 551,000 |   |
|       Securities      available for sale |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                |   |                    | 1,194,000 |   |                   |   | 1,031,000 |   |   |   | 3,301,000 |   |   |   | 2,868,000 |   |
| Non-taxable                                                            |   |                    | 53,000    |   |                   |   | 20,000 |   |   |   | 121,000 |   |   |   | 50,000 |   |
| FHLB      dividends                                                    |   |                    | 46,000    |   |                   |   | 29,000 |   |   |   | 128,000 |   |   |   | 87,000 |   |
| Other      interest-earning assets                                     |   |                    | 20,000    |   |                   |   | 20,000 |   |   |   | 62,000 |   |   |   | 39,000 |   |
| Total      interest income                                             |   |                    | 8,910,000 |   |                   |   | 8,526,000 |   |   |   | 26,277,000 |   |   |   | 24,575,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                                 |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                               |   |                    | 2,533,000 |   |                   |   | 3,189,000 |   |   |   | 8,055,000 |   |   |   | 8,810,000 |   |
| Borrowed      money                                                    |   |                    | 567,000   |   |                   |   | 425,000 |   |   |   | 1,694,000 |   |   |   | 1,378,000 |   |
| Total      interest expense                                            |   |                    | 3,100,000 |   |                   |   | 3,614,000 |   |   |   | 9,749,000 |   |   |   | 10,188,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income before provision for loan losses              |   |                    | 5,810,000 |   |                   |   | 4,912,000 |   |   |   | 16,528,000 |   |   |   | 14,387,000 |   |
| Provision      for loan losses                                         |   |                    | 1,175,000 |   |                   |   | 90,000 |   |   |   | 1,535,000 |   |   |   | 280,000 |   |
| Net      interest income after provision for loan losses               |   |                    | 4,635,000 |   |                   |   | 4,822,000 |   |   |   | 14,993,000 |   |   |   | 14,107,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      income:                                               |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Fees      and service charges                                          |   |                    | 370,000   |   |                   |   | 375,000 |   |   |   | 1,067,000 |   |   |   | 1,160,000 |   |
| Bank      owned life insurance                                         |   |                    | 85,000    |   |                   |   | 80,000 |   |   |   | 244,000 |   |   |   | 240,000 |   |
| Gain      on sales of mortgage loans                                   |   |                    | 47,000    |   |                   |   | 73,000 |   |   |   | 156,000 |   |   |   | 259,000 |   |
| Gain      on calls of securities                                       |   |                    | 4,000     |   |                   |   | - |   |   |   | 61,000 |   |   |   | - |   |
| Merchant      processing                                               |   |                    | 340,000   |   |                   |   | 353,000 |   |   |   | 1,070,000 |   |   |   | 1,070,000 |   |
| Life      insurance proceeds                                           |   |                    | -         |   |                   |   | - |   |   |   | - |   |   |   | 459,000 |   |
| Miscellaneous                                                          |   |                    | 48,000    |   |                   |   | 34,000 |   |   |   | 289,000 |   |   |   | 229,000 |   |
| Total      noninterest income                                          |   |                    | 894,000   |   |                   |   | 915,000 |   |   |   | 2,887,000 |   |   |   | 3,417,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      expenses:                                             |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                                    |   |                    | 1,968,000 |   |                   |   | 1,781,000 |   |   |   | 6,078,000 |   |   |   | 5,425,000 |   |
| Occupancy,      net                                                    |   |                    | 477,000   |   |                   |   | 406,000 |   |   |   | 1,354,000 |   |   |   | 1,122,000 |   |
| Equipment                                                              |   |                    | 276,000   |   |                   |   | 239,000 |   |   |   | 842,000 |   |   |   | 696,000 |   |
| Data      processing                                                   |   |                    | 300,000   |   |                   |   | 240,000 |   |   |   | 897,000 |   |   |   | 869,000 |   |
| Advertising                                                            |   |                    | 106,000   |   |                   |   | 111,000 |   |   |   | 342,000 |   |   |   | 311,000 |   |
| FDIC      insurance premium                                            |   |                    | 77,000    |   |                   |   | 24,000 |   |   |   | 223,000 |   |   |   | 50,000 |   |
| Amortization      of intangible assets                                 |   |                    | 8,000     |   |                   |   | 8,000 |   |   |   | 24,000 |   |   |   | 24,000 |   |
| Charitable      contributions                                          |   |                    | 126,000   |   |                   |   | 178,000 |   |   |   | 474,000 |   |   |   | 546,000 |   |
| Stationery      and supplies                                           |   |                    | 87,000    |   |                   |   | 63,000 |   |   |   | 316,000 |   |   |   | 256,000 |   |
| Merchant      processing                                               |   |                    | 299,000   |   |                   |   | 315,000 |   |   |   | 944,000 |   |   |   | 965,000 |   |
| Bank-card      related services                                        |   |                    | 84,000    |   |                   |   | 71,000 |   |   |   | 238,000 |   |   |   | 240,000 |   |
| Miscellaneous                                                          |   |                    | 554,000   |   |                   |   | 437,000 |   |   |   | 1,671,000 |   |   |   | 1,546,000 |   |
| Total      noninterest expenses                                        |   |                    | 4,362,000 |   |                   |   | 3,873,000 |   |   |   | 13,403,000 |   |   |   | 12,050,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income tax expense                                  |   |                    | 1,167,000 |   |                   |   | 1,864,000 |   |   |   | 4,477,000 |   |   |   | 5,474,000 |   |
| Income      tax expense                                                |   |                    | 329,000   |   |                   |   | 635,000 |   |   |   | 1,399,000 |   |   |   | 1,705,000 |   |
| Net      income                                                        |   |                    | 838,000   |   |                   |   | 1,229,000 |   |   |   | 3,078,000 |   |   |   | 3,769,000 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                                          |   | $                       | 0.15      |   |                   | $      | 0.22 |   |   | $ | 0.55 |   |   | $ | 0.68 |   |
| Diluted      earnings per share                                        |   | $                       | 0.15      |   |                   | $      | 0.22 |   |   | $ | 0.55 |   |   | $ | 0.68 |   |
|                                                                   |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares outstanding              |   |                    | 5,573,982 |   |                   |   | 5,569,912 |   |   |   | 5,576,987 |   |   |   | 5,553,499 |   |
| Weighted      average number of diluted common                         |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      shares      outstanding                  |   |                    | 5,583,909 |   |                   |   | 5,587,857 |   |   |   | 5,589,608 |   |   |   | 5,583,632 |   |

| Share      data has been restated to reflect a 5% stock dividend declared on      September 18, 2007 and paid November 15, 2007, and a 5% stock      dividend declared on September 16, 2008 and payable November 17,      2008. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |

----

Index

| Stewardship      Financial Corporation and Subsidiary                                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated      Statements of Cash Flows                                                                                                       |   |
| (Unaudited)                                                                                                                                      |   |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   | Nine      Months Ended |   |
|                                                                                                                                             |   | September      30, |   |
|                                                                                                                                             |   | 2008 |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                       |   |   |   |   |   |   |
| Net      income                                                                                                                                  |   | $ | 3,078,000 |   |   | $ | 3,769,000 |   |
| Adjustments      to reconcile net income to                                                                                                      |   |   |   |   |   |   |   |   |
| net      cash provided by operating activities:                                                                                                  |   |   |   |   |   |   |   |   |
| Depreciation      and amortization of premises and equipment                                                                                     |   |   | 696,000 |   |   |   | 569,000 |   |
| Amortization      of premiums and accretion of discounts, net                                                                                    |   |   | 89,000 |   |   |   | 102,000 |   |
| Accretion      of deferred loan fees                                                                                                             |   |   | (216,000 | ) |   |   | (71,000 | ) |
| Provision      for loan losses                                                                                                                   |   |   | 1,535,000 |   |   |   | 280,000 |   |
| Valuation      reserve on other real estate                                                                                                      |   |   | - |   |   |   | 32,000 |   |
| Originations      of mortgage loans held for sale                                                                                                |   |   | (15,869,000 | ) |   |   | (24,308,000 | ) |
| Proceeds      from sale of mortgage loans                                                                                                        |   |   | 16,414,000 |   |   |   | 25,335,000 |   |
| Gain      on sale of loans                                                                                                                       |   |   | (156,000 | ) |   |   | (259,000 | ) |
| Gain      on calls of securities                                                                                                                 |   |   | (61,000 | ) |   |   | - |   |
| Loss      on sale of equipment                                                                                                                   |   |   | 12,000 |   |   |   | - |   |
| Deferred      income tax benefit                                                                                                                 |   |   | (639,000 | ) |   |   | (32,000 | ) |
| Amortization      of intangible assets                                                                                                           |   |   | 24,000 |   |   |   | 24,000 |   |
| Nonqualified      stock option expense                                                                                                           |   |   | 36,000 |   |   |   | 38,000 |   |
| Increase      in bank owned life insurance                                                                                                       |   |   | (244,000 | ) |   |   | (240,000 | ) |
| Gain      from bank owned life insurance proceeds                                                                                                |   |   | - |   |   |   | (459,000 | ) |
| Increase      in accrued interest receivable                                                                                                     |   |   | (129,000 | ) |   |   | (281,000 | ) |
| Decrease      in other assets                                                                                                                    |   |   | 259,000 |   |   |   | 120,000 |   |
| (Decrease)      increase in accrued interest payable                                                                                             |   |   | (615,000 | ) |   |   | 207,000 |   |
| Decrease      in other liabilities                                                                                                               |   |   | (465,000 | ) |   |   | (37,000 | ) |
| Net      cash provided by operating activities                                                                                                   |   |   | 3,749,000 |   |   |   | 4,789,000 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                       |   |   |   |   |   |   |   |   |
| Purchase      of securities available for sale                                                                                                   |   |   | (41,754,000 | ) |   |   | (15,628,000 | ) |
| Proceeds      from maturities and principal repayments on securities available for      sale                                                     |   |   | 5,973,000 |   |   |   | 8,815,000 |   |
| Proceeds      from calls on securities available for sale                                                                                        |   |   | 16,197,000 |   |   |   | 300,000 |   |
| Purchase      of securities held to maturity                                                                                                     |   |   | (1,798,000 | ) |   |   | (7,450,000 | ) |
| Proceeds      from maturities and principal repayments on securities held to      maturity                                                       |   |   | 3,191,000 |   |   |   | 6,471,000 |   |
| Proceeds      from calls on securities held to maturity                                                                                          |   |   | 4,520,000 |   |   |   | 152,000 |   |
| (Purchase)      redemption of FHLB-NY stock                                                                                                      |   |   | (873,000 | ) |   |   | 294,000 |   |
| Net      increase in loans                                                                                                                       |   |   | (22,592,000 | ) |   |   | (26,171,000 | ) |
| Additional      investment in other real estate owned                                                                                            |   |   | - |   |   |   | (324,000 | ) |
| Proceeds      from life insurance payout                                                                                                         |   |   | - |   |   |   | 1,030,000 |   |
| Additions      to premises and equipment                                                                                                         |   |   | (282,000 | ) |   |   | (1,138,000 | ) |
| Sale      of equipment                                                                                                                           |   |   | 4,000 |   |   |   | - |   |
|                  Net      cash used in investing activities |   |   | (37,414,000 | ) |   |   | (33,649,000 | ) |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                       |   |   |   |   |   |   |   |   |
| Net      (decrease) increase in noninterest-bearing deposits                                                                                     |   |   | (5,189,000 | ) |   |   | 4,292,000 |   |
| Net      increase in interest-bearing deposits                                                                                                   |   |   | 25,000,000 |   |   |   | 20,056,000 |   |
| Net      (decrease) increase in securities sold under agreements to      repurchase                                                              |   |   | (986,000 | ) |   |   | 7,781,000 |   |
| Proceeds      from term borrowings                                                                                                               |   |   | 65,000,000 |   |   |   | - |   |
| Net      decrease in short term borrowings                                                                                                       |   |   | (10,800,000 | ) |   |   | (6,400,000 | ) |
| Payments      on long term borrowings                                                                                                            |   |   | (36,270,000 | ) |   |   | (1,230,000 | ) |
| Cash      dividends paid on common stock                                                                                                         |   |   | (1,460,000 | ) |   |   | (1,358,000 | ) |
| Payment      of discount on dividend reinvestment plan                                                                                           |   |   | (34,000 | ) |   |   | (33,000 | ) |
| Purchase      of treasury stock                                                                                                                  |   |   | (131,000 | ) |   |   | - |   |
| Options      exercised                                                                                                                           |   |   | 49,000 |   |   |   | 59,000 |   |
| Tax      benefit of stock options                                                                                                                |   |   | 2,000 |   |   |   | 2,000 |   |
| Issuance      of common stock                                                                                                                    |   |   | 41,000 |   |   |   | 42,000 |   |
| Net      cash provided by financing activities                                                                                                   |   |   | 35,222,000 |   |   |   | 23,211,000 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                                                        |   |   | 1,557,000 |   |   |   | (5,649,000 | ) |
| Cash      and cash equivalents - beginning                                                                                                       |   |   | 11,932,000 |   |   |   | 15,697,000 |   |
| Cash      and cash equivalents - ending                                                                                                          |   | $ | 13,489,000 |   |   | $ | 10,048,000 |   |

----

Index

| Stewardship      Financial Corporation and Subsidiary  |
|--------------------------------------------------------|
| Consolidated      Statements of Cash Flows (continued) |
| (Unaudited)                                            |
|                                                   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                   |   | Nine      Months Ended |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                   |   | September      30,     |       |
|                                                                                                                                                                                                                                                                                                                                                   |   | 2008                   |       | 2007 |   |
| Supplemental      disclosures of cash flow information:                                                                                                                                                                                                                                                                                                |   |                   |       |   |   |   |
| Cash      paid during the period for interest                                                                                                                                                                                                                                                                                                     |   | $                      | 10,364,000 |   |   | $ | 9,980,000 |   |
| Cash      paid during the period for income taxes                                                                                                                                                                                                                                                                                                 |   | $                      | 1,814,000  |   |   | $ | 1,699,000 |   |
| Noncash      investing activities - security purchases due brokers                                                                                                                                                                                                                                                                                     |   | $                      | 1,890,000  |   |   | $ | - |   |
|                                                     -      transfer of loan to ORE |   | $                      | -          |   |   | $ | 61,000 |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |                   |       |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.                                                                                                                                                                                                                                                                                         |   |                   |       |   |   |   |   |   |

----

Index

| Stewardship      Financial Corporation and Subsidiary                   |   |
|-------------------------------------------------------------------------|--------|
| Consolidated      Statement of Changes in Stockholders'Equity           |   |
| (Unaudited)                                                             |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | For      the Period Ended September 30, 2008 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Other |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Comprehensive |   |   |   |   |
|                                                                    |   | Common      Stock |   |   | Treasury      Stock |   |   | Retained |   |   | Gain      (Loss), |   |   |   |   |
|                                                                    |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Earnings |   |   | Net |   |   | Total |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      -- December 31, 2007                                       |   |   | 5,306,828 |   |   | $ | 34,871,000 |   |   |   | - |   |   | $ | - |   |   | $ | 5,943,000 |   |   | $ | 276,000 |   |   | $ | 41,090,000 |   |
| Dividends      Paid                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,460,000 | ) |   |   | - |   |   |   | (1,460,000 | ) |
| 5%      stock dividend (declared on September 16, 2008                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and      payable November 17, 2008)             |   |   | 265,984 |   |   |   | 3,319,000 |   |   |   | (495 | ) |   |   | (6,000 | ) |   |   | (3,313,000 | ) |   |   | - |   |   |   | - |   |
| Payment      of discount on dividend                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     reinvestment      plan                          |   |   | - |   |   |   | (34,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (34,000 | ) |
| Common      stock issued under stock plans                              |   |   | 1,667 |   |   |   | 21,000 |   |   |   | 1,603 |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | 41,000 |   |
| Stock      option compensation expense                                  |   |   | - |   |   |   | 36,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36,000 |   |
| Stock      options exercised                                            |   |   | 11,180 |   |   |   | 70,000 |   |   |   | (1,499 | ) |   |   | (21,000 | ) |   |   | - |   |   |   | - |   |   |   | 49,000 |   |
| Tax      benefit on stock options exercised                             |   |   | - |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Repurchase      common stock                                            |   |   | - |   |   |   | - |   |   |   | (10,000 | ) |   |   | (131,000 | ) |   |   | - |   |   |   | - |   |   |   | (131,000 | ) |
| Comprehensive      income:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,078,000 |   |   |   | - |   |   |   | 3,078,000 |   |
|    Unrealized      holding losses on securities          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     available      for sale arising during the      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     period      (net tax benefit of $597,000)       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (949,000 | ) |   |   | (949,000 | ) |
|    Reclassification      adjustment for gains in         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      net      income (net of taxes of $24,000) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37,000 |   |   |   | 37,000 |   |
| Total      comprehensive income, net of tax                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,166,000 |   |
|                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |
| Balance      -- September 30, 2008                                      |   |   | 5,585,659 |   |   | $ | 38,285,000 |   |   |   | (10,391 | ) |   | $ | (138,000 | ) |   | $ | 4,248,000 |   |   | $ | (636,000 | ) |   | $ | 41,759,000 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |
|--------------------------------------------------------------------|--------|----------------------------------------------|-----------|--------|---------------------|--------|------------|----------|--------|--------|--------|--------|--------|----------|----------|--------|---------------|--------|------------|--------|--------|
|                                                               |   | For      the Period Ended September 30, 2007 |      |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   | Accumulated   |   |       |   |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   | Other         |   |       |   |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   | Comprehensive |   |       |   |   |
|                                                               |   | Common      Stock                            |      |   | Treasury      Stock |   |       | Retained |   |   | Loss,  |   |   |     |     |
|                                                               |   | Shares                                       |      |   | Amount              |   |       | Shares   |   |   | Amount |   |   | Earnings |     |   | Net           |   |       | Total  |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |
| Balance      -- December 31, 2006                                  |   |                                         | 5,017,919 |   |                | $      | 31,148,000 |     |   |   | -      |   |   | $        | -        |   |          | $      | 6,750,000  |   |   | $ | (592,000 | ) |   | $ | 37,306,000 |   |
| Dividends      Paid                                                |   |                                         | -         |   |                |   | -          |     |   |   | -      |   |   |     | -        |   |          |   | (1,358,000 | )      |   |   | - |   |   |   | (1,358,000 | ) |
| 5%      stock dividend (declared on September 18, 2008             |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
|     and      payable November 15, 2007)        |   |                                         | 253,054   |   |                |   | 3,631,000  |     |   |   | (392   | )      |   |     | (5,000   | )      |          |   | (3,626,000 | )      |   |   | - |   |   |   | - |   |
| Payment      of discount on dividend                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
|     reinvestment      plan                     |   |                                         | -         |   |                |   | (33,000    | )        |   |   | -      |   |   |     | -        |   |          |   | -          |   |   |   | - |   |   |   | (33,000 | ) |
| Common      stock issued under stock plans                         |   |                                         | 1,810     |   |                |   | 22,000     |     |   |   | 1,462  |   |   |     | 20,000   |   |          |   | -          |   |   |   | - |   |   |   | 42,000 |   |
| Stock      option compensation expense                             |   |                                         | -         |   |                |   | 38,000     |     |   |   | -      |   |   |     | -        |   |          |   | -          |   |   |   | - |   |   |   | 38,000 |   |
| Stock      options exercised                                       |   |                                         | 41,359    |   |                |   | 186,000    |     |   |   | (9,302 | )      |   |     | (127,000 | )      |          |   | -          |   |   |   | - |   |   |   | 59,000 |   |
| Tax      benefit on stock options exercised                        |   |                                         | -         |   |                |   | 2,000      |     |   |   | -      |   |   |     | -        |   |          |   | -          |   |   |   | - |   |   |   | 2,000 |   |
| Comprehensive      income:                                         |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
|    Net      income                                  |   |                                         | -         |   |                |   | -          |     |   |   | -      |   |   |     | -        |   |          |   | 3,769,000  |   |   |   | - |   |   |   | 3,769,000 |   |
|    Unrealized      holding gains on securities      |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
|     available      for sale arising during the |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
|     period      (net tax benefit of $249,000)  |   |                                         | -         |   |                |   | -          |     |   |   | -      |   |   |     | -        |   |          |   | -          |   |   |   | 255,000 |   |   |   | 255,000 |   |
| Total      comprehensive income, net of tax                        |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   | 4,024,000 |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Balance      -- September 30, 2007                                 |   |                                         | 5,314,142 |   |                | $      | 34,994,000 |     |   |   | (8,232 | )      |   | $        | (112,000 | )      |          | $      | 5,535,000  |   |   | $ | (337,000 | ) |   | $ | 40,080,000 |   |
|                                                               |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |   |   |   |
| See      notes to unaudited consolidated financial statements.     |   |                                         |      |   |                |   |       |     |   |   |   |   |   |     |     |   |          |   |       |   |   |   |   |   |   |

----

Index

t

----

Index

|                                        |   | 2008            |    |   | 2007     |   |
|---------------------------------------------|--------|-----------------|---------|--------|----------|--------|
|                                        |   |            |    |   | Weighted |   |   |   |   |   | Weighted |   |
|                                        |   |            |    |   | Average  |   |   |   |   |   | Average |   |
|                                        |   |            |    |   | Exercise |   |   |   |   |   | Exercise |   |
|                                        |   | Shares          |    |   | Price    |   |   | Shares |   |   | Price |   |
|                                        |   |            |    |   |     |   |   |   |   |   |   |   |
| Outstanding      at beginning of year       |   |            | 38,238  |   |     | $      | 7.20 |   |   |   | 83,153 |   |   | $ | 5.42 |   |
| Exercised                                   |   |            | (9,425  | )      |     |   | 4.57 |   |   |   | (43,283 | ) |   |   | 3.68 |   |
| Forfeited                                   |   |            | (1,531  | )      |     |   | 11.37 |   |   |   | (1,454 | ) |   |   | 9.92 |   |
|                                        |   |            |    |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      at end of period           |   |            | 27,282  |   |     | $      | 7.88 |   |   |   | 38,416 |   |   | $ | 7.23 |   |
|                                        |   |            |    |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Options      exercisable                    |   |            | 27,282  |   |     |   |   |   |   |   | 38,416 |   |   |   |   |   |
|                                        |   |            |    |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average remaining             |   |            |    |   |     |   |   |   |   |   |   |   |   |   |   |   |
|   contractual      life           |   | 2.28      years |    |   |     |   |   |   | 2.78      years |   |   |   |   |   |
| Aggregate      intrinsic value              |   | $               | 109,000 |   |     |   |   |   |   | $ | 199,000 |   |   |   |   |   |
| Intrinsic      value of options exercisable |   | $               | 109,000 |   |     |   |   |   |   | $ | 199,000 |   |   |   |   |   |

|                                        |   | 2008            |   |   | 2007     |   |
|---------------------------------------------|--------|-----------------|--------|--------|----------|--------|
|                                        |   |            |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                        |   |            |   |   | Average  |   |   |   |   |   | Average |   |
|                                        |   |            |   |   | Exercise |   |   |   |   |   | Exercise |   |
|                                        |   | Shares          |   |   | Price    |   |   | Shares |   |   | Price |   |
|                                        |   |            |   |   |     |   |   |   |   |   |   |   |
| Outstanding      at beginning of year       |   |            | 60,318 |   |     | $      | 11.76 |   |   |   | 63,791 |   |   | $ | 11.76 |   |
| Exercised                                   |   |            | (2,314 | )      |     |   | 12.24 |   |   |   | (2,315 | ) |   |   | 11.66 |   |
|                                        |   |            |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      at end of period           |   |            | 58,004 |   |     | $      | 11.76 |   |   |   | 61,476 |   |   | $ | 11.76 |   |
|                                        |   |            |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Options      exercisable                    |   |            | 24,432 |   |     |   |   |   |   |   | 14,889 |   |   |   |   |   |
|                                        |   |            |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average remaining             |   |            |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|   contractual      life           |   | 3.46      years |   |   |     |   |   |   | 4.48      years |   |   |   |   |   |
| Aggregate      intrinsic value              |   | $               | 7,000  |   |     |   |   |   |   | $ | 77,000 |   |   |   |   |   |
| Intrinsic      value of options exercisable |   | $               | -      |   |     |   |   |   |   | $ | 14,000 |   |   |   |   |   |

----

Index

|                                    |   | September      30, 2008 |       |
|-----------------------------------------|--------|-------------------------|------------|
|                                    |   |                    |       |   | Gross |   |   | Gross |   |
|                                    |   | Fair                    |       |   | Unrealized |   |   | Unrealized |   |
|                                    |   | Value                   |       |   | Holding      Gains |   |   | Holding      Losses |   |
|                                    |   |                    |       |   |   |   |   |   |   |
| U.S.      government-sponsored agencies |   | $                       | 51,691,000 |   |   | $ | 194,000 |   |   | $ | 811,000 |   |
| Obligations      of state and political |   |                    |       |   |   |   |   |   |   |   |   |   |
|   subdivisions                |   |                    | 5,707,000  |   |   |   | 3,000 |   |   |   | 303,000 |   |
| Mortgage-backed      securities         |   |                    | 36,357,000 |   |   |   | 155,000 |   |   |   | 249,000 |   |
| Other      securities                   |   |                    | 2,792,000  |   |   |   | 1,000 |   |   |   | 28,000 |   |
|                                    |   | $                       | 96,547,000 |   |   | $ | 353,000 |   |   | $ | 1,391,000 |   |

|                                    |   | December      31, 2007 |       |
|-----------------------------------------|--------|------------------------|------------|
|                                    |   |                   |       |   |   | Gross |   |   | Gross |   |
|                                    |   | Fair                   |       |   | Unrealized |   |   | Unrealized |   |
|                                    |   | Value                  |       |   | Holding      Gains |   |   | Holding      Losses |   |
|                                    |   |                   |       |   |   |   |   |   |   |   |   |   |
| U.S.      government-sponsored agencies |   | $                      | 35,693,000 |   |   | $ | 495,000 |   |   | $ | 4,000 |   |
| Obligations      of state and political |   |                   |       |   |   |   |   |   |   |   |   |   |
|   subdivisions                |   |                   | 2,903,000  |   |   |   | 2,000 |   |   |   | 29,000 |   |
| Mortgage-backed      securities         |   |                   | 37,131,000 |   |   |   | 205,000 |   |   |   | 205,000 |   |
| Other      securities                   |   |                   | 1,230,000  |   |   |   | - |   |   |   | 17,000 |   |
|                                    |   | $                      | 76,957,000 |   |   | $ | 702,000 |   |   | $ | 255,000 |   |

----

Index

|                                    |   | September      30, 2008 |       |
|-----------------------------------------|--------|-------------------------|------------|
|                                    |   |                    |       |   | Gross |   |   | Gross |   |   |   |   |
|                                    |   | Carrying                |       |   | Unrecognized |   |   | Unrecognized |   |   | Fair |   |
|                                    |   | Value                   |       |   | Holding      Gains |   |   | Holding      Losses |   |   | Value |   |
|                                    |   |                    |       |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury securities           |   | $                       | 500,000    |   |   | $ | 2,000 |   |   | $ | - |   |   | $ | 502,000 |   |
| U.S.      government-sponsored agencies |   |                    | 6,790,000  |   |   |   | 31,000 |   |   |   | 37,000 |   |   |   | 6,784,000 |   |
| Obligations      of state and political |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   subdivisions                |   |                    | 23,450,000 |   |   |   | 39,000 |   |   |   | 675,000 |   |   |   | 22,814,000 |   |
| Mortgage-backed      securities         |   |                    | 4,906,000  |   |   |   | 48,000 |   |   |   | 25,000 |   |   |   | 4,929,000 |   |
|                                    |   | $                       | 35,646,000 |   |   | $ | 120,000 |   |   | $ | 737,000 |   |   | $ | 35,029,000 |   |

|                                    |   | December      31, 2007 |       |
|-----------------------------------------|--------|------------------------|------------|
|                                    |   |                   |       |   |   | Gross |   |   | Gross |   |   |   |   |   |
|                                    |   | Carrying               |       |   | Unrecognized |   |   | Unrecognized |   |   | Fair |   |
|                                    |   | Value                  |       |   | Holding      Gains |   |   | Holding      Losses |   |   | Value |   |
|                                    |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Treasury securities           |   | $                      | 501,000    |   |   | $ | 5,000 |   |   | $ | - |   |   | $ | 506,000 |   |
| U.S.      government-sponsored agencies |   |                   | 12,331,000 |   |   |   | 135,000 |   |   |   | 1,000 |   |   |   | 12,465,000 |   |
| Obligations      of state and political |   |                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   subdivisions                |   |                   | 22,569,000 |   |   |   | 204,000 |   |   |   | 40,000 |   |   |   | 22,733,000 |   |
| Mortgage-backed      securities         |   |                   | 5,788,000  |   |   |   | 48,000 |   |   |   | 32,000 |   |   |   | 5,804,000 |   |
|                                    |   | $                      | 41,189,000 |   |   | $ | 392,000 |   |   | $ | 73,000 |   |   | $ | 41,508,000 |   |

----

Index

|        |                           |   | September      30, |        |   | December      31, |       |
|-------------|--------------------------------|--------|--------------------|-------------|--------|-------------------|------------|
|        |                           |   | 2008               |        |   | 2007              |       |
|        |                           |   |               |        |   |              |       |
|        |                           |   |               |        |   |              |       |
| Mortgage    |                           |   |               |        |   |              |
|        | Residential                    |   | $                  | 40,624,000  |   |              | $          | 44,719,000 |   |
|        | Commercial                     |   |               | 230,529,000 |   |              |       | 209,082,000 |   |
| Commercial  |                           |   | 96,647,000         |        |   |              | 89,845,000 |   |
| Equity      |                           |   |               | 20,972,000  |   |              |       | 19,723,000 |   |
| Installment |                           |   | 53,996,000         |        |   |              | 56,796,000 |   |
| Other       |                           |   |               | 543,000     |   |              |       | 424,000 |   |
|        |   Total      loans   |   |               | 443,311,000 |   |              |       | 420,589,000 |   |
|        |                           |   |               |        |   |              |       |   |   |
| Less:       | Deferred      loan fees        |   |               | 418,000     |   |              |       | 442,000 |   |
|        | Allowance      for loan losses |   |               | 5,930,000   |   |              |       | 4,457,000 |   |
|        |                           |   |               | 6,348,000   |   |              |       | 4,899,000 |   |
|        |                           |   |               |        |   |              |       |   |   |
|        | Loans,      net                |   | $                  | 436,963,000 |   |              | $          | 415,690,000 |   |

|                                 |   | Nine      Months Ended September 30, |      |
|--------------------------------------|--------|--------------------------------------|-----------|
|                                 |   | 2008                                 |      |   | 2007 |   |
|                                 |   |                                 |      |   |   |   |
| Balance,      beginning of period    |   | $                                    | 4,457,000 |   |   | $ | 4,101,000 |   |
| Provision      charged to operations |   |                                 | 1,535,000 |   |   |   | 280,000 |   |
| Recoveries      of loans charged off |   |                                 | 21,000    |   |   |   | 8,000 |   |
| Loans      charged off               |   |                                 | (83,000   | ) |   |   | (140,000 | ) |
|                                 |   |                                 |      |   |   |   |   |   |
| Balance,      end of period          |   | $                                    | 5,930,000 |   |   | $ | 4,249,000 |   |

|                                                                   |   | September      30, |      |   | December      31, |   |
|------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                   |   | 2008               |      | 2007   |              |
|                                                                   |   |               |      |   |              |   |
| Impaired      loans                                                    |   |               |      |   |              |   |
|     With      related allowance for loan losses    |   | $                  | 3,468,000 |   |              | $      | 222,000 |   |
|     Without      related allowance for loan losses |   |               | 3,416,000 |   |              |   | 233,000 |   |
| Total      impaired loans                                              |   | $                  | 6,884,000 |   |              | $      | 455,000 |   |
|                                                                   |   |               |      |   |              |   |   |   |
| Related      allowance for loan losses                                 |   | $                  | 1,262,000 |   |              | $      | 39,000 |   |

----

Index

|                               |   |                    |       |   | Fair      Value Measurements at September 30, 2008 Using                        |   |
|------------------------------------|--------|-------------------------|------------|--------|---------------------------------------------------------------------------------|--------|
|                               |   | September      30, 2008 |       |   | Quoted      Prices inActive      Markets forIdentical      Assets(Level      1) |   |   | SignificantOtherObservableInputs(Level      2) |   |   | SignificantUnobservableInputs (Level      3) |   |
| Assets:                            |   |                    |       |   |                                                                            |   |   |   |   |   |   |   |
| Available      for sale securities |   | $                       | 96,547,000 |   |                                                                            | $      | - |   |   | $ | 96,547,000 |   |   | $ | - |   |
| Impaired      loans                |   | $                       | 6,884,000  |   |                                                                            | $      | - |   |   | $ | - |   |   | $ | 6,884,000 |   |

----

Index

|                                        |   | Three      Months Ended                    |   |   | Nine      Months Ended |   |
|---------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------|--------|
|                                        |   | September      30,                         |   |   | September      30,     |   |
|                                        |   | 2008                                       |   |   | 2007                   |   |   | 2008 |   |   | 2007 |   |
|                                        |   | (in      thousands, except per share data) |   |
|                                        |   |                                       |   |   |                   |   |   |   |   |   |   |   |
| Net      income                             |   | $                                          | 838    |   |                   | $      | 1,229 |   |   | $ | 3,078 |   |   | $ | 3,769 |   |
|                                        |   |                                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares                |   |                                       | 5,574  |   |                   |   | 5,570 |   |   |   | 5,577 |   |   |   | 5,553 |   |
| Effect      of dilutive stock options       |   |                                       | 10     |   |                   |   | 18 |   |   |   | 13 |   |   |   | 31 |   |
| Total      weighted average dilutive shares |   |                                       | 5,584  |   |                   |   | 5,588 |   |   |   | 5,590 |   |   |   | 5,584 |   |
|                                        |   |                                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share               |   | $                                          | 0.15   |   |                   | $      | 0.22 |   |   | $ | 0.55 |   |   | $ | 0.68 |   |
|                                        |   |                                       |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share             |   | $                                          | 0.15   |   |                   | $      | 0.22 |   |   | $ | 0.55 |   |   | $ | 0.68 |   |

----

Index

D

----

Index

----

Index

| Analysis      of Net Interest Income (Unaudited)       |                        |
|--------------------------------------------------------|-----------------------------|
| For      the Three Months Ended September 30,          |                        |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   | 2008                        |   |   | 2007 |   |
|                                                   |                        |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                   |                        |   |   |   | Interest |   |   | Rates |   |   |   |   |   | Interest |   |   | Rates |   |
|                                                   | Average                     |   |   | Income/ |   |   | Earned/ |   |   | Average |   |   | Income/ |   |   | Earned/ |   |
|                                                   | Balance                     |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                                                   | (Dollars      in thousands) |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                          |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      (1) (2)                                     |                        | $ | 447,028 |   |   | $ | 7,229 |   |   |   | 6.43 | % |   | $ | 388,936 |   |   | $ | 7,003 |   |   |   | 7.14 | % |
| Taxable      investment securities (1)                 |                        |   | 106,452 |   |   |   | 1,411 |   |   |   | 5.27 |   |   |   | 96,633 |   |   |   | 1,288 |   |   |   | 5.29 |   |
| Tax-exempt      investment securities (1) (2)          |                        |   | 28,737 |   |   |   | 383 |   |   |   | 5.33 |   |   |   | 24,085 |   |   |   | 313 |   |   |   | 5.20 |   |
| Other      interest-earning assets                     |                        |   | 2,998 |   |   |   | 20 |   |   |   | 2.65 |   |   |   | 1,242 |   |   |   | 19 |   |   |   | 6.07 |   |
| Total      interest-earning assets                     |                        |   | 585,215 |   |   | $ | 9,043 |   |   |   | 6.15 |   |   |   | 510,896 |   |   | $ | 8,623 |   |   |   | 6.70 |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning      assets:                      |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses                         |                        |   | (4,832 | ) |   |   |   |   |   |   |   |   |   |   | (4,217 | ) |   |   |   |   |   |   |   |   |
| Other      assets                                      |                        |   | 34,959 |   |   |   |   |   |   |   |   |   |   |   | 33,564 |   |   |   |   |   |   |   |   |   |
| Total      assets                                      |                        | $ | 615,342 |   |   |   |   |   |   |   |   |   |   | $ | 540,243 |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Stockholders' Equity              |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                     |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      demand deposits                  |                        | $ | 169,545 |   |   | $ | 636 |   |   |   | 1.49 | % |   | $ | 140,991 |   |   | $ | 973 |   |   |   | 2.74 | % |
| Savings      deposits                                  |                        |   | 38,158 |   |   |   | 57 |   |   |   | 0.59 |   |   |   | 36,816 |   |   |   | 71 |   |   |   | 0.77 |   |
| Time      deposits                                     |                        |   | 187,083 |   |   |   | 1,841 |   |   |   | 3.91 |   |   |   | 186,397 |   |   |   | 2,144 |   |   |   | 4.56 |   |
| Repurchase      agreements                             |                        |   | 16,241 |   |   |   | 135 |   |   |   | 3.31 |   |   |   | 11,855 |   |   |   | 127 |   |   |   | 4.25 |   |
| FHLB      borrowing                                    |                        |   | 52,590 |   |   |   | 314 |   |   |   | 2.38 |   |   |   | 16,802 |   |   |   | 176 |   |   |   | 4.16 |   |
| Subordinated      debenture                            |                        |   | 7,217 |   |   |   | 117 |   |   |   | 6.45 |   |   |   | 7,217 |   |   |   | 122 |   |   |   | 6.71 |   |
| Total      interest-bearing liabilities                |                        |   | 470,834 |   |   | $ | 3,100 |   |   |   | 2.62 |   |   |   | 400,078 |   |   | $ | 3,613 |   |   |   | 3.58 |   |
| Non-interest-bearing      liabilities:                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                   |                        |   | 98,358 |   |   |   |   |   |   |   |   |   |   |   | 96,431 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                 |                        |   | 4,147 |   |   |   |   |   |   |   |   |   |   |   | 4,444 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity                              |                        |   | 42,003 |   |   |   |   |   |   |   |   |   |   |   | 39,290 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity        |                        | $ | 615,342 |   |   |   |   |   |   |   |   |   |   | $ | 540,243 |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income (taxable equivalent basis)    |                        |   | $ | 5,943 |   |   |   |   |   |   |   |   |   |   | $ | 5,010 |   |   |   |   |   |
| Tax      Equivalent adjustment                         |                        |   |   |   |   |   | (133 | ) |   |   |   |   |   |   |   |   |   |   | (97 | ) |   |   |   |   |
| Net      interest income                               |                        |   |   |   |   | $ | 5,810 |   |   |   |   |   |   |   |   |   |   | $ | 4,913 |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest spread (taxable equivalent basis)    |                        |   |   |   |   |   |   | 3.53 | % |   |   |   |   |   |   |   |   |   |   | 3.11 | % |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      yield on interest-earning                     |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   assets      (taxable equivalent basis) (3) |                        |   |   |   |   |   |   |   |   |   | 4.04 | % |   |   |   |   |   |   |   |   |   |   | 3.89 | % |

|      (1)     For      purpose of these calculations, nonaccruing loans are included in the      average balance.  Fees are included in loan      interest.  Loans and |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                total      interest-earning assets are net of unearned income.  Securities      are included at amortized cost.                         |   |   |   |   |
|      (2)     The      tax equivalent adjustments are based on a marginal tax rate of      34%.                                                                                            |   |   |   |   |   |   |   |   |   |   |
|      (3)     Net      interest income (taxable equivalent basis) divided by average      interest-earning assets.                                                                         |   |   |   |   |   |   |

----

Index

| Analysis      of Net Interest Income (Unaudited)       |                        |
|--------------------------------------------------------|-----------------------------|
| For      the Nine Months Ended September 30,           |                        |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   | 2008                        |   |   | 2007 |   |
|                                                   |                        |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                   |                        |   |   | Interest |   |   | Rates |   |   |   |   |   | Interest |   |   | Rates |   |
|                                                   | Average                     |   |   | Income/ |   |   | Earned/ |   |   | Average |   |   | Income/ |   |   | Earned/ |   |
|                                                   | Balance                     |   |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                                                   | (Dollars      in thousands) |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                          |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans      (1) (2)                                     | $                           | 435,554 |   |   | $ | 21,513 |   |   |   | 6.60 | % |   | $ | 379,189 |   |   | $ | 20,289 |   |   |   | 7.15 | % |
| Taxable      investment securities (1)                 |                        | 101,304 |   |   |   | 3,990 |   |   |   | 5.26 |   |   |   | 93,092 |   |   |   | 3,646 |   |   |   | 5.24 |   |
| Tax-exempt      investment securities (1) (2)          |                        | 27,353 |   |   |   | 1,091 |   |   |   | 5.32 |   |   |   | 22,880 |   |   |   | 872 |   |   |   | 5.08 |   |
| Other      interest-earning assets                     |                        | 3,307 |   |   |   | 62 |   |   |   | 2.50 |   |   |   | 744 |   |   |   | 39 |   |   |   | 7.01 |   |
| Total      interest-earning assets                     |                        | 567,518 |   |   | $ | 26,656 |   |   |   | 6.27 |   |   |   | 495,905 |   |   | $ | 24,846 |   |   |   | 6.70 |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning      assets:                      |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses                         |                        | (4,649 | ) |   |   |   |   |   |   |   |   |   |   | (4,147 | ) |   |   |   |   |   |   |   |   |
| Other      assets                                      |                        | 34,397 |   |   |   |   |   |   |   |   |   |   |   | 33,395 |   |   |   |   |   |   |   |   |   |
| Total      assets                                      | $                           | 597,266 |   |   |   |   |   |   |   |   |   |   | $ | 525,153 |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Stockholders' Equity              |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                     |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      demand deposits                  | $                           | 163,435 |   |   | $ | 2,102 |   |   |   | 1.72 | % |   | $ | 127,765 |   |   | $ | 2,353 |   |   |   | 2.46 | % |
| Savings      deposits                                  |                        | 38,394 |   |   |   | 180 |   |   |   | 0.63 |   |   |   | 37,363 |   |   |   | 211 |   |   |   | 0.76 |   |
| Time      deposits                                     |                        | 181,398 |   |   |   | 5,773 |   |   |   | 4.25 |   |   |   | 183,801 |   |   |   | 6,246 |   |   |   | 4.54 |   |
| Repurchase      agreements                             |                        | 16,391 |   |   |   | 414 |   |   |   | 3.37 |   |   |   | 10,534 |   |   |   | 351 |   |   |   | 4.45 |   |
| FHLB      borrowing                                    |                        | 46,217 |   |   |   | 917 |   |   |   | 2.65 |   |   |   | 20,281 |   |   |   | 662 |   |   |   | 4.36 |   |
| Subordinated      debenture                            |                        | 7,217 |   |   |   | 363 |   |   |   | 6.72 |   |   |   | 7,217 |   |   |   | 365 |   |   |   | 6.76 |   |
| Total      interest-bearing liabilities                |                        | 453,052 |   |   | $ | 9,749 |   |   |   | 2.87 |   |   |   | 386,961 |   |   | $ | 10,188 |   |   |   | 3.52 |   |
| Non-interest-bearing      liabilities:                 |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                                   |                        | 97,704 |   |   |   |   |   |   |   |   |   |   |   | 95,602 |   |   |   |   |   |   |   |   |   |
| Other      liabilities                                 |                        | 4,600 |   |   |   |   |   |   |   |   |   |   |   | 4,014 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity                              |                        | 41,910 |   |   |   |   |   |   |   |   |   |   |   | 38,576 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity        | $                           | 597,266 |   |   |   |   |   |   |   |   |   |   | $ | 525,153 |   |   |   |   |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income (taxable equivalent basis)    |                        |   | $ | 16,907 |   |   |   |   |   |   |   |   |   |   | $ | 14,658 |   |   |   |   |   |
| Tax      Equivalent adjustment                         |                        |   |   |   |   | (379 | ) |   |   |   |   |   |   |   |   |   |   | (271 | ) |   |   |   |   |
| Net      interest income                               |                        |   |   |   | $ | 16,528 |   |   |   |   |   |   |   |   |   |   | $ | 14,387 |   |   |   |   |   |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest spread (taxable equivalent basis)    |                        |   |   |   |   |   |   | 3.40 | % |   |   |   |   |   |   |   |   |   |   | 3.18 | % |
|                                                   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      yield on interest-earning                     |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   assets      (taxable equivalent basis) (3) |                        |   |   |   |   |   |   |   |   | 3.98 | % |   |   |   |   |   |   |   |   |   |   | 3.95 | % |

|      (1)     For      purpose of these calculations, nonaccruing loans are included in the      average balance.  Fees are included in loan      interest.  Loans and total interest-earning |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                assets      are net of unearned income.  Securities are included at      amortized cost.                                                                       |   |   |   |   |   |   |   |   |
|      (2)     The      tax equivalent adjustments are based on a marginal tax rate of      34%.                                                                                                                   |   |   |   |   |   |   |   |   |   |
|      (3)     Net      interest income (taxable equivalent basis) divided by average      interest-earning assets.                                                                                                |   |   |   |   |   |

----

Index

----

Index

----

Index

|                                                               |   | September      30,          |   |   | June      30, |   |   | March      31, |   |   | December      31, |   |
|--------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------|--------|--------|----------------|--------|--------|-------------------|--------|
|                                                               |   | 2008                        |   |   | 2008          |   |   | 2008           |   |   | 2007              |   |
|                                                               |   | (Dollars      in Thousands) |   |
| Nonaccrual      loans: (1)                                         |   | $                           | 6,884  |   |          | $      | 451    |           |   | $      | 360               |   |   | $ | 455 |   |
| Loans      past due 90 days or more: (2)                           |   |                        | 268    |   |          |   | 840    |           |   |   | 703               |   |   |   | 26 |   |
|       Total      nonperforming loans |   | $                           | 7,152  |   |          | $      | 1,291  |           |   | $      | 1,063             |   |   | $ | 481 |   |
|                                                               |   |                        |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Other      real estate owned                                       |   | $                           | -      |   |          | $      | -      |           |   | $      | -                 |   |   | $ | - |   |
|                                                               |   |                        |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Total      nonperforming loans                                     |   | $                           | 7,152  |   |          | $      | 1,291  |           |   | $      | 1,063             |   |   | $ | 481 |   |
|                                                               |   |                        |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Allowance      for loan losses                                     |   | $                           | 5,930  |   |          | $      | 4,768  |           |   | $      | 4,571             |   |   | $ | 4,457 |   |
|                                                               |   |                        |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
| Nonaccrual      loans to total loans                               |   |                        | 1.55   | %      |          |   | 0.10   | %              |   |   | 0.08              | %      |   |   | 0.11 | % |
| Nonperforming      loans to total loans                            |   |                        | 1.61   | %      |          |   | 0.29   | %              |   |   | 0.25              | %      |   |   | 0.11 | % |
| Nonperforming      loans to total assets                           |   |                        | 1.17   | %      |          |   | 0.21   | %              |   |   | 0.18              | %      |   |   | 0.08 | % |
| Nonperforming      assets to total assets                          |   |                        | 1.17   | %      |          |   | 0.21   | %              |   |   | 0.18              | %      |   |   | 0.08 | % |
| Allowance      for loan losses to total loans                      |   |                        | 1.34   | %      |          |   | 1.09   | %              |   |   | 1.07              | %      |   |   | 1.06 | % |
| Allowance      for loan losses to                                  |   |                        |   |   |          |   |   |           |   |   |              |   |   |   |   |   |
|       nonperforming      loans       |   |                        | 82.91  | %      |          |   | 369.30 | %              |   |   | 430.13            | %      |   |   | 926.61 | % |

----

Index

|                                                                    | Required | Actual | Excess |
|-------------------------------------------------------------------------|----------|--------|--------|
|                                                                    |     |   |   |
| Leverage      Ratio                                                     | 4.00%    | 8.02%  | 4.02%  |
| Risk-based      Capital                                                 |     |   |   |
|           Tier      1 | 4.00%    | 10.47% | 6.47%  |
|          Total             | 8.00%    | 11.72% | 3.72%  |

----

Index

n

|   | (a) | Evaluation      of internal controls and procedures |
|--------|-----|-----------------------------------------------------|

|   | (b) | Management’s      Report on Internal Control over Financial  Reporting |
|--------|-----|------------------------------------------------------------------------------|

|   | (c) | Changes      in internal controls. |
|--------|-----|------------------------------------|

----

Index

| Item      4. | Submission of Matters      to a Vote of Security Holders |
|--------------|----------------------------------------------------------|
|         | None.                                                    |
|         |                                                     |   |
| Item      6. | Exhibits                                                 |   |
|         |                                                     |   |
|         | (a)                                                      | Exhibits |
|         |                                                     | See      Exhibit Index following thisreport. |

----

Index

A

|   |              |   | Stewardship      Financial Corporation |
|--------|-------------------|--------|----------------------------------------|
|   |              |   |                                   |   |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
| Date:  | November 13, 2008 |   | By:                                    | /s/ Paul Van Ostenbridge |
|   |              |   |                                   | Paul      Van Ostenbridge |
|   |              |   |                                   | President      and Chief Executive Officer |
|   |              |   |                                   | (Principal      Executive Officer) |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
|   |              |   |                                   |   |
| Date:  | November 13, 2008 |   | By:                                    | /s/ Claire M. Chadwick |
|   |              |   |                                   | Claire      M. Chadwick |
|   |              |   |                                   | Senior      Vice President and Chief Financial Officer |
|   |              |   |                                   | (Principal      Financial and Accounting Officer) |
|   |              |   |                                   |   |

----

Index

H

| EXHIBITNUMBER |  DESCRIPTION                                                                                                                                                                                  |   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                                                                               |   |
| 31.1          | Certification      of Paul Van Ostenbridge required by Rule 13a-14(a) or Rule      15d-14(a)                                                                                                  |   |
| 31.2          | Certification      of Claire M. Chadwick required by Rule 13a-14(a) or Rule      15d-14(a)                                                                                                    |   |
| 32.1          | Certification      of Paul Van Ostenbridge and Claire M. Chadwick required by Rule 13a-14(b)      or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18      U.S.C. Section 1350 |