EXHIBIT 99.1

Somerset Hills Bancorp Reports 2011 Fourth Quarter and Record Full-Year Earnings

BERNARDSVILLE, N.J., Jan. 26, 2012 (GLOBE NEWSWIRE) -- Somerset Hills Bancorp (Nasdaq:SOMH) (the "Company"), parent company of Somerset Hills Bank (the "Bank"), reported net income of $2.8 million for 2011, a 12.1% increase over the $2.5 million earned for 2010. Diluted earnings per share increased to $0.52 in 2011 from $0.46 in 2010. For the fourth quarter of 2011, the Company earned $822,000, representing a 1.5% increase over the $810,000 earned during the fourth quarter of 2010 and an 11.5% increase over the $737,000 earned during the linked third quarter of 2011. Diluted earnings per share were $0.16 in the fourth quarter of 2011, $0.15 in the fourth quarter of 2010 and $0.13 in the third quarter of 2011.

Stewart E. McClure, Jr., President and CEO said, "We posted another record year for earnings in 2011, reflecting strong organic growth which resulted in total assets increasing by more than 10% to $364 million by year-end. By most measures, economic conditions remained stressed nationwide over the course of 2011, but in the Bank's operating area, we witnessed increased stability and a pick-up in loan demand. Our nonperforming asset ratio, which remains one of the best in the industry, declined further, to 0.04% from 0.08% one year ago, while our loan portfolio increased by 12.2%, reflecting strong originations generated by both our commercial and residential lending teams. On the funding side of our balance sheet, our core deposit balances expanded by 16.6%, due not only to continued market liquidity but also to significant growth in the number of deposit accounts. This growth occurred despite our lowering of deposit rates throughout the year and core deposits now represent 87% of total deposit balances." Mr. McClure continued, "We pride ourselves on expense control, and our focus and expertise in this regard proved fruitful again this year. Operating expenses, excluding nonrecurring debt extinguishment charges in 2011, declined by 4.6% in 2011 from 2010, and our efficiency ratio improved to 63.0% in the fourth quarter of 2011. In addition, during 2011, we resumed our common stock repurchase program, increased our common dividend and repurchased some of our higher cost FHLB borrowings. Heading into 2012, we remain focused on enhancing shareholder value. Although we cannot completely control our operating environment, we pledge to our shareholders a continued focus on executing our business plan, which we believe will further improve financial performance and be value accretive to our uniquely positioned franchise."

Net interest income on a fully taxable equivalent basis for 2011 totaled $12.0 million, an increase of $547,000, or 4.8%, from $11.5 million earned in 2010. The increase in net interest income in 2011 was primarily attributable to an 8.3% increase in average interest-earning assets, to $318.9 million in 2011 from $294.3 million in 2010, and was partially offset by a 14 basis point decline, to 3.84% in 2011 from 3.98% in 2010, in the net interest margin. Net interest income on a fully taxable equivalent basis for the fourth quarter of 2011 totaled $3.1 million, an increase of $124,000, or 4.2%, from $2.9 million earned in the fourth quarter of 2010. The increase for the quarterly comparison was primarily attributable to a 12.0% increase in fourth quarter interest-earning assets, to $342.8 million in 2011 from $306.0 million in 2010, and was partially offset by a 27 basis point decline, to 3.55% in the fourth quarter 2011 from 3.82% in the fourth quarter 2010, in the net interest margin. For both the annual and quarterly comparisons, the increase in interest-earning assets was largely due to loan growth funded by core deposit growth, and the decrease in net interest margin was due to loans and investment securities re-pricing downward at a faster pace than our deposits. The net interest margin in all periods presented was, on average, lower than historical levels due to high levels of liquidity. Management remains less concerned with the absolute level of the net interest margin than the Bank's ability to consistently increase net interest income, and believes that the high levels of cash held by the Bank are indicative of both a solid balance sheet and a flexible operating position.

Non-interest income was $2.0 million for the full-year 2011, down $212,000 from $2.2 million earned during 2010. The decrease was primarily due to a $495,000 decline in gains on sales of residential mortgage loans, due to reduced origination volume at Sullivan Financial Services, Inc., a wholly-owned mortgage banking subsidiary of the Bank. Partially offsetting this decline were a $257,000 increase in BOLI income, due principally to a death benefit received in 2011, $9,000 of gains on sales of investment securities in 2011, and higher banking and wealth management fees. Fourth quarter 2011 non-interest income was $503,000, a $225,000 decrease from the comparable prior year period, primarily due to a $230,000 decrease in gains on sales of residential loans, reflecting reduced origination volume.

Management continued its focus on operating efficiency throughout 2011. Non-interest expense for 2011, which included a $426,000 nonrecurring charge for the early extinguishment of debt, was $9.6 million, unchanged from 2010. Excluding the nonrecurring charge, 2011 non-interest expense decreased by $439,000, or 4.6%, from 2010, primarily due to lower employee-related, occupancy, advertising, and FDIC assessment expenses. For the three months ended December 31, 2011, non-interest expenses were $2.3 million, down $115,000 from $2.4 million in the comparable 2010 period. The decrease was attributable to lower employee-related and occupancy costs.

The Company recorded provisions for income taxes of $1.2 million for both the full-year 2011 and 2010. The effective tax rates were 29.7% for 2011 and 32.7% for 2010. The decrease in the effective tax rate was due to the previously-mentioned tax free BOLI death benefit received in 2011. The provision for income taxes was $430,000 in the fourth quarter of 2011 versus $423,000 in the prior year quarter. The effective tax rate was 34.3% in the fourth quarter of both 2011 and 2010.

For 2011, the provision for loan losses was $220,000 and net charge-offs were $113,000, while for 2010, the provision for loan losses was $125,000 and net charge-offs were $361,000. For the fourth quarter of 2011, the provision for loan losses was $20,000 and there were $5,000 in net charge-offs, while for the fourth quarter of 2010, the provision for loan losses was $25,000 and net charge-offs were $266,000. During the fourth quarter of 2010, the Company charged off completely one consumer credit of $298,000 that previously had a specific impairment reserve of approximately $200,000. The allowance for loan losses at December 31, 2011 was $3.0 million, representing 1.28% of total loans. At December 31, 2010 the allowance was $2.9 million, representing 1.39% of total loans. Nonaccrual loans totaled $146,000 representing 0.06% of total loans at December 31, 2011 compared with $254,000 representing 0.12% of total loans at December 31, 2010. The nonperforming asset ratio, which is defined as nonaccrual loans and OREO as a percentage of total assets, was 0.04% at December 31, 2011 and 0.08% at year-end 2010. The Company had no OREO at either of December 31, 2011 or 2010. Troubled debt restructured loans ("TDRs") totaled $344,000 at December 31, 2011 versus $738,000 at December 31, 2010. All TDRs are current and performing under their restructured terms. As of December 31, 2011, the Company had $875,000 in loans delinquent 30 to 89 days, representing 0.38% of total loans, versus $512,000, or 0.25%, of total loans, at December 31, 2010.

As of December 31, 2011, the Company's tangible common equity ratio and tangible book value per share were 11.08% and $7.55, respectively. As of December 31, 2010, the Company's tangible common equity ratio and tangible book value per share were 11.98% and $7.27, respectively.

The Board of Directors declared a quarterly cash dividend of $0.07 per share payable February 29, 2012 to shareholders of record as of February 15, 2012. 

The Company's previously announced stock repurchase program authorizes the repurchase of up to 750,000 shares of the Company's outstanding common stock. Repurchases under the program total 440,716 shares to date, including 16,538 shares repurchased during the fourth quarter of 2011 at a weighted average price of $7.73. Under the program, repurchases may be made from time to time in the open market or in privately negotiated transactions at such prices as management of the Company deems appropriate.

Forward-Looking Statements

This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company's market area and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACT: Stewart E. McClure, Jr.
         President & CEO
         908.630.5000

         William S. Burns
         Chief Financial Officer
         908.630.5018