8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)            April 26, 2007          

Stewardship Financial Corporation
(Exact Name of Registrant as Specified in its Charter)
New Jersey	0-21855	22-3351447
(State or Other Jurisdiction of	(Commission	(IRS Employer
Incorporation)	File Number)	Identification No.)
630 Godwin Avenue, Midland Park,  NJ		07432
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code	(201)  444-7100
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On April 26, 2007, Stewardship Financial Corporation issued a press release announcing its unaudited results for the quarter ended March 31, 2007.  A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(d) The following exhibit is furnished pursuant to Item 2.02 and shall not be deemed to be “filed”:

Exhibit No.	Description
Exhibit 99.1	Press Release dated April 26, 2007

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  April 30, 2007	Stewardship Financial Corporation
	/s/	Julie E. Holland
		Julie E. Holland
		Senior Vice President and Treasurer

EX-99.1

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

PRESS RELEASE

Stewardship Financial Corporation Announces

Quarterly Earnings for the First Quarter, 2007

Midland Park,  NJ – April 26, 2007 – Stewardship Financial Corporation (NASDAQ:SSFN), parent of Atlantic Stewardship Bank, announced today net income for the three (3) months ended March 31, 2007, of $1.09 million, or $0.22 basic net income per share, as compared to net income of $1.11 million, or $0.22 basic net income per share for the same three (3) month period in 2006.

Diluted net income per share was $0.21 for the quarter ended March 31, 2007 compared to diluted net income per share of $0.22 for the quarter ended March 31, 2006.  Per share data has been restated to include the effect of a 5% stock dividend paid in November 2006.

Stewardship Financial Corporation’s total assets reached $520.5 million at March 31, 2007, compared to $476.6 million at March 31, 2006, resulting in growth of 9.2%.  Total gross loans increased 7.2% to $370.6 million at March 31, 2007, compared to $345.8 million a year ago.  Total deposits were $439.7 million at March 31, 2007, compared to $400.6 million a year ago, resulting in growth of 9.8%.  Total stockholders’ equity increased 11.6% to $38.1 million at March 31, 2007, compared to $34.2 million a year ago.

Stewardship Financial Corporation’s President and Chief Executive Officer Paul Van Ostenbridge stated, “We are grateful to our Bank associates who worked diligently to achieve our first quarter earnings while operating in a challenging interest rate environment.  The Corporation is pleased to report an increase in commercial and retail loan activity at quarter end.  The introduction of two new branches in 2007 should provide the foundation for future loan and core deposit growth.  We were pleased to open the Wyckoff branch in March and the deposits at this new location already exceed projections.  We are encouraged by this reception from the Wyckoff community and look forward to introducing our style of banking and unique mission to Westwood, a new banking market for us, in the fourth quarter of 2007.”

Stewardship Financial Corporation’s subsidiary, the Atlantic Stewardship Bank, has banking offices in Midland Park, Hawthorne (2), Montville, Pequannock, Ridgewood, Waldwick, Wayne (3) and Wyckoff, New Jersey.  The Bank is working toward the opening of its twelfth branch in Westwood, New Jersey during the third quarter of 2007.  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.

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

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Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
	Three Months Ended
	March 31,
	2007		2006
Selected Operating Data:
Total interest income	$	7,932	$	6,984
Total interest expense		3,259		2,307
Net interest income before provision
for loan loss		4,673		4,677
Provision for loan loss		10		50
Net interest income after provision
for loan loss		4,663		4,627
Gains on sales of mortgage loans		89		50
Other noninterest income		907		820
Total other income		996		870
Noninterest expense		3,995		3,778
Income before income tax expense		1,664		1,719
Income tax expense		578		610
Net income	$	1,086	$	1,109
Basic earnings per share	$	0.22	$	0.22
Diluted earnings per share	$	0.21	$	0.22

	At March 31,
	2007			2006
Selected Financial Data:
Total assets	$	520,489		$	476,565
Total loans, net of deferred loan fees		370,554			345,761
Allowance for loan losses		4,093			3,920
Total deposits		439,682			400,557
Stockholders' equity		38,108			34,151
	At or for the
	three month period ended
	March 31,
	2007			2006
Selected Financial Ratios:
Annualized return on average assets (ROA)		0.85	%		0.93	%
Annualized return on average equity (ROE)		11.62	%		13.23	%
Tier 1 equity to total assets		8.67	%		8.64	%
Book value per share	$	7.59		$	6.84

All share data has been restated to include the effects of a 5% stock dividend paid in November 2006.

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