PACIFIC STATE BANCORP AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited	March 31,		December 31,
(Dollars in thousands)	2008		2007
ASSETS
Cash and due from banks	$	13,130	$	13,794
Federal funds sold		21,716		31,880
Total cash and cash equivalents		34,846		45,674
Interest bearing deposits at other banks		3,000		3,000
Investment securities		47,539		41,352
Loans, less allowance for loan losses of $3,629 in 2008 and $3,948 in 2007		325,041		308,458
Premises and equipment, net		14,659		14,269
Company owned life insurance		8,101		8,025
Accrued interest receivable and other assets		10,494		10,296
Total assets	$	443,680	$	431,074
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing	$	60,318	$	67,071
Interest bearing		294,998		274,750
Total deposits		355,316		341,821
Other borrowings		40,000		40,000
Subordinated debentures		8,764		8,764
Accrued interest payable and other liabilities		4,471		6,453
Total liabilities		408,551		397,038
Commitments and contingencies
Shareholders' equity:
Preferred stock - 2,000,000 shares authorized; none issued or outstanding		-		-
Common stock - no par value; 24,000,000 shares authorized; issued and outstanding –3,703,207 shares in 2008 and 3,703,207 shares in 2007		10,504		10,418
Retained earnings		25,098		24,004
Accumulated other comprehensive loss, net of taxes		(473)		(386)
Total shareholders' equity		35,129		34,036
Total liabilities and shareholders' equity	$	443,680	$	431,074

PACIFIC STATE BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2008		2007
Interest income:
Interest and fees on loans	$	6,476	$	6,842
Interest on Federal funds sold		115		321
Interest on investment securities		710		343
Total interest income		7,301		7,506
Interest expense:
Interest on deposits		2,798		2,917
Interest on borrowings		430		66
Interest on subordinated debentures		154		192
Total interest expense		3,382		3,175
Net interest income before provision for loan losses		3,919		4,331
Provision for loan losses		210		165
Net interest income after provision for loan losses		3,709		4,166
Non-interest income:
Service charges		237		221
Gain on sale of loans		19		9
Other income		216		456
Total non-interest income		472		686
Non-interest expenses:
Salaries and employee benefits		1,268		1,482
Occupancy		263		286
Furniture and equipment		179		167
Other expenses		785		775
Total non-interest expenses		2,495		2,710
Income before provision for income taxes		1,686		2,142
Provision for income taxes		592		816
Net income	$	1,094	$	1,326
Basic earnings per share	$	0.30	$	0.36
Diluted earnings per share	$	0.27	$	0.33