Stewardship Financial Corporation Announces Quarterly Earnings for the First Quarter 2008

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

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

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

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

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

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

                    Stewardship Financial Corporation
                           Financial Highlights
                                (unaudited)
                  (In thousands, except per share data)

                                                       Three Months Ended
                                                            March 31,
                                                        2008       2007
                                                      ---------  ----------
Selected Operating Data:
Total interest income                                 $   8,657  $    7,932
Total interest expense                                    3,495       3,259
                                                      ---------  ----------
Net interest income before provision for loan loss        5,162       4,673
Provision for loan loss                                     100          10
                                                      ---------  ----------
Net interest income after provision for loan loss         5,062       4,663

Gains on sales of mortgage loans                             55          89
Other noninterest income                                    921         907
                                                      ---------  ----------
Total other income                                          976         996

Noninterest expense                                       4,479       3,995
                                                      ---------  ----------
Income before income tax expense                          1,559       1,664
Income tax expense                                          499         578
                                                      ---------  ----------
Net income                                            $   1,060  $    1,086
                                                      =========  ==========

Basic earnings per share                              $    0.20  $     0.21
Diluted earnings per share                            $    0.20  $     0.20


                                               At March 31,
                                              2008       2007
                                           ---------  ---------
Selected Financial Data:
Total assets                               $ 590,233  $ 520,489
Total loans, net of deferred loan fees       425,357    370,554
Allowance for loan losses                      4,571      4,093
Total deposits                               476,567    439,682
Stockholders' equity                          42,138     38,108


                                               At or for the
                                         three month period ended
                                                 March 31,
                                              2008       2007
                                           ---------  ---------
Selected Financial Ratios:
Annualized return on average assets (ROA)       0.74%      0.85%
Annualized return on average equity (ROE)      10.29%     11.62%
Tier 1 equity to total assets                   8.33%      8.67%
Book value per share                       $    7.93  $    7.23


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

Contact Information: Contact: Mary Beth Steiginga 630 Godwin Avenue Midland Park, NJ 07432 201-444-7100