Item 1.01 Entry into a Material Definitive Agreement.

On June 24, 2009, Somerset Hills Bancorp (the "Registrant") entered into a Repurchase Letter Agreement (the "Repurchase Agreement") with the United States Department of Treasury (the "Treasury"). Pursuant to the Repurchase Agreement, the Registrant repurchased the warrant issued to the Treasury in connection with the Registrant's participation in the Capital Purchase Program entitling the Treasury to purchase 163,065 shares of the Company's common stock. The Registrant repurchased the warrant for $275,000. A copy of the Repurchase Agreement is attached hereto as Exhibit 10.1 and is incorporated into this Item 1.01 by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits. The following is filed as an Exhibit to this Current Report on Form 8-K: 10.1 Repurchase Letter Agreement dated June 24, 2009, between Somerset Hills Bancorp and the United States Department of the Treasury.