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) October 31, 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 October 31, 2007, Stewardship Financial Corporation issued a press release announcing its unaudited results for the quarter ended September 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 October 31, 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:  November 5, 2007	Stewardship Financial Corporation
	/s/  Julie E. Holland
	Julie E. Holland
	Vice President and Treasurer

EX-99.1

For Immediate Release
Date:	October 31, 2007
Contact:	Mary Beth Steiginga,
	Assistant Secretary
	630 Godwin Avenue
	Midland Park, NJ 07432
	201- 444-7100

PRESS RELEASE

Stewardship Financial Corporation Announces

Earnings for the Third Quarter

Midland Park,  NJ – October 31, 2007- Stewardship Financial Corporation (NASDAQ:SSFN) (the “Corporation”), parent of Atlantic Stewardship Bank, announced today net income for the nine (9) months ended September 30, 2007 of $3.77 million or $0.71 basic earnings per share, an increase of 7.7% and 7.6% respectively, as compared to net income of $3.50 million, or $0.66 basic earnings per share for the same nine (9) month period in 2006.  Fully diluted earnings per share were $0.70 for the nine (9) months ended September 30, 2007 as compared to $0.66, an increase of 6.1%, for the nine (9) months ended September 30, 2006.  Earnings for the nine (9) months ended September 30, 2007 were impacted by the receipt of a life insurance payout which resulted in miscellaneous income of $459,000.

Stewardship Financial Corporation reported net income of $1.23 million or $0.23 basic earnings per share for the three (3) months ended September 30, 2007 and for the three (3) months period ended September 30, 2006.  Diluted earnings per share were $0.23 for both of the three (3) month periods ended September 30, 2007 and 2006.

Per share calculations have been adjusted for a 5% stock dividend paid in November 2006 and a 5% stock dividend payable on November 15, 2007.

Stewardship Financial Corporation’s President and Chief Executive Officer Paul Van Ostenbridge stated, “We are pleased to report strong earnings for the period ending September 30, 2007.  Despite the recent downturn in the real estate market due to the subprime lending trends, loan demand has remained strong in our market area.  We have never participated in the sub-prime residential mortgage lending or negative amortization loan markets.  We continue to remain diligent in maintaining strong credit quality standards and are proud of the performance of our portfolio.  During September 2007, we successfully opened our twelfth branch in Westwood, Bergen County, New Jersey and are looking forward to opening our thirteenth branch in North Haledon, Passaic County, New Jersey in the first quarter of 2008.  We feel our branch network positions us to continue to remain competitive in our marketplace and provide a strong delivery channel to attract new deposit and lending relationships.”

Stewardship Financial Corporation’s total assets reached $547.2 million at September 30, 2007, compared to $509.1 million at September 30, 2006, resulting in growth of 7.5%.  Total loans increased 9.1% to $395.6 million at September 30, 2007, compared to $362.6 million at September 30, 2006.  Total deposits were $458.6 million at September 30, 2007, compared to $426.7 million a year ago, resulting in growth of 7.5%.  Total stockholders’ equity increased 9.5% to $40.1 million at September 30, 2007, compared to $36.6 million a year ago.

Stewardship Financial Corporation’s subsidiary, the Atlantic Stewardship Bank, has banking offices in Midland Park, Hawthorne (2), Montville, Pequannock, Ridgewood, Waldwick, and Wayne (3), Westwood, and Wyckoff, New Jersey.  The 13^th branch is expected to open in North Haledon, New Jersey during 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.

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)
	Nine Months Ended				Three Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
Selected Operating Data:
Total interest income	$	24,575	$	22,111	$	8,526	$	7,793
Total interest expense		10,188		7,807		3,614		2,928
Net interest income before provision
for loan loss		14,387		14,304		4,912		4,865
Provision for loan loss		280		250		90		90
Net interest income after provision
for loan loss		14,107		14,054		4,822		4,775
Noninterest income		3,417		2,886		915		984
Noninterest expense		12,050		11,510		3,873		3,869
Income before income tax expense		5,474		5,430		1,864		1,890
Income tax expense		1,705		1,929		635		665
Net income	$	3,769	$	3,501	$	1,229	$	1,225
Basic earnings per share	$	0.71	$	0.66	$	0.23	$	0.23
Diluted earnings per share	$	0.70	$	0.66	$	0.23	$	0.23

	At September 30,
	2007		2006
Selected Financial Data:
Total assets	$	547,193	$	509,130
Total loans, net of deferred loan fees		395,594		362,597
Allowance for loan losses		4,249		4,086
Total deposits		458,571		426,749
Stockholders' equity		40,080		36,600

	At or for the nine month period ended
	September 30,
	2007			2006
Selected Financial Ratios:
Annualized return on average assets (ROA)		0.96	%		0.96	%
Annualized return on average equity (ROE)		13.06	%		13.41	%
Tier 1 equity to total assets		8.60	%		8.56	%
Book value per share	$	7.55		$	6.94

     All share data has been restated to include the effect of a 5% stock dividend paid in November, 2006 and a 5% stock dividend payable November 15, 2007.

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