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) July 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 July 26, 2007, Stewardship Financial Corporation issued a press release announcing its unaudited results for the quarter ended June 30, 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 July 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:	July 30, 2007	Stewardship Financial Corporation
		/s/	Julie E. Holland
			Julie E. Holland
			Senior Vice President and Treasurer

EX-99.1

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

PRESS RELEASE

Stewardship Financial Corporation Announces

Record Earnings for the Second Quarter, 2007

Midland Park, NJ – July 26, 2007 - Stewardship Financial Corporation (NASDAQ:SSFN), parent of Atlantic Stewardship Bank, announced today net income for the three (3) months ended June 30, 2007 of $1.45 million or $0.29 basic and fully diluted earnings per share, an increase of 24.6% and 26.1% respectively, as compared to net income of $1.17 million, or $0.23 basic and fully diluted earnings per share for the same three (3) month period in 2006.

For the six (6) months ended June 30, 2007, Stewardship Financial Corporation reported net income of $2.54 million or $0.51 basic earnings per share, an increase of 11.6% and 13.3% respectively, as compared to net income of $2.28 million or $0.45 per share for the same six (6) month period in 2006.  Diluted earnings per share were $0.50 for the six (6) months ended June 30, 2007, an increase of 11.1% over the diluted earnings per share of $0.45 for the six (6) months ended June 30, 2006.  Per share calculations have been adjusted for a 5% stock dividend paid in November 2006.

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Stewardship Financial Corporation’s President and Chief Executive Officer Paul Van Ostenbridge stated, “We are pleased to report on our performance for the period ending June 30, 2007.  Core earnings remain strong despite the continued challenges of growing core deposits in the current interest rate environment.  We are encouraged by the growth in our loan portfolio with our commercial products leading the way.  Our newest branch in Wyckoff is bringing in strong deposit relationships and we look forward to our newest branch opening in Westwood, New Jersey during the third quarter of 2007.”

Stewardship Financial Corporation’s total assets reached $538.8 million at June 30, 2007, compared to $495.4 million at June 30, 2006, resulting in growth of 8.8%.  Total loans increased 6.6% to $383.7 million at June 30, 2007, compared to $359.8 million at June 30, 2006.  Total deposits were $451.5 million at June 30, 2007, compared to $419.0 million a year ago, resulting in growth of 7.8%.  Total stockholders’ equity increased 10.2% to $38.6 million at June 30, 2007, compared to $35.0 million a year ago.  Earnings for the quarter and year ended June 30, 2007 were impacted by the receipt of a life insurance payout, which resulted in miscellaneous income of $459,000.

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.  Our 12^th branch is expected to open in Westwood, New Jersey during the third quarter of 2007, which will be followed by a new location in North Haledon, New Jersey in the first quarter of 2008.  The bank is known for tithing 10% of its pre-tax profits to Christian and local charities.  We invite you to visit our website at www.asbnow.com for additional information.

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

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

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

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

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