Stockton , California – February 15, 2007 Steve n A. Rosso, President and C.E.O. of Pacific State Bancorp (NASDAQ Global Market/PSBC), the parent company of Pacific State Bank, today reported record 4th quarter profits and asset growth for the Stockton, California based financial institution:

• Net income for the year ended December 31, 2006 increased 29% to $5,543,000 and for the fourth quarter of 2006 increased 40% to $1,517,000.
• Total Assets as of December 31, 2006 increased 25% to $386,753,000. 

Rosso noted that the record financial performance reflected strong year to date and quarter over quarter improvement. The general enthusiasm that has been brewing in the company with the announcement of the tenth year of record earnings will generate continued enterprise wide growth for 2007. Pacific State Bank’s two new branches in Lodi and Hayward are well situated and will help contribute to ongoing success in 2007.

PSBC financial performance information for the three month period ending December 31, 2006 compared to the same quarter in the prior year is as follows:

Income Statement:

• Total Interest Income: $7,432,000, an increase of $2,224,000 or 42.70%.
• Total Interest Expense: $2,867,000, an increase of $1,265,000 or 78.96%.
• Net Interest Income: $4,565,000, an increase of $959,000 or 26.59%.
• Non-Interest Income: $774,000, an increase of $236,000 or 43.87%. 
• Non-Interest Expense: $2,719,000, an increase of $207,000 or 8.24%. 
• Net Income: $1,517,000, an increase of $434,000 or 40.07%.
• Efficiency Ratio: 50.93% improving from 60.62%.
• Basic Earnings Per Share: $.0.43 an increase of $0.12 per share or 38.71%.
• Diluted Earnings Per Share: $0.39, an increase of $0.11 per share or 39.29%.

PSBC December 31, 2006 compared to December 31, 2005 financial performance information was as follows: 

Balance Sheet:

• Total Federal Funds and Investment Securities: $54,737,000 , an increase of $21,531,000 or 64.84%.
• Net Loans: $287,318,000 , an increase of $45,762,000 or 18.94%.
• Total Assets: $386,753,000 , an increase of $77,142,000 or 24.92%.
• Non-Interest Bearing Deposits: $73,197,000 , an increase of $4,540,000 or 6.61%.
• Total Deposits: $340,996,000 , an increase of $67,922,000 or 24.87%.
• Total Share holders Equity: $29,060,000 , an increase of $7,687,000 or 35.97%. In addition to the retention of earnings, the increase in shareholders equity includes the proceeds of the sale of common stock to a new member of the Board of Directors and stock issued subsequent to the exercise of options by directors and employees.

Income Statement:

• Total Interest Income: $26,495,000 an increase of $7,713,000 or 41.07%.
• Total Interest Expense: $9,188,000, an increase of $3,942,000 or 75.14%.
• Net Interest Income: $17,307,000, an increase of $3,771,000 or 27.86%.
• Non-Interest Income: $2,583,000, an increase of $102,000 or 4.11%. 
• Non-Interest Expense: $10,360,000, an increase of $1,260,000 or 13.85%.  The increase in non-interest expense was due in part to the cost of additional staff to support the growth of the Bank and the expense of opening the Bank’s ninth branch office in Lodi, California. As of December 31, 2006, the Company had 86 full-time employees as compared to 73 as of December 31, 2005. In addition, the company has purchased a building in Hayward, California in preparation for the expected opening of a tenth office there during the first quarter of 2007. During 2006, management increase the allowance for loans losses due to the continued strong growth in the loan portfolio.
• Net Income: $5,543,000, an increase of $1,257,000 or 29.331%.
• Net Interest Margin: 5.76%, up 35 basis points.
• Annualized Return on Average Assets: 1.67% up from 1.53%.
• Annualized Return on Average Equity: 22.91% down slightly from 22.98%.
• Efficiency Ratio: 52.09% improving from 56.81%.
• Basic Earnings Per Share: $1.57, an increase of $0.34 per share or 27.64%.
• Diluted Earnings Per Share: $1.41, an increase of $0.31 per share or 28.18%.

Attached are certain unaudited financial statements supporting the financial information summarized above.  Further inquiries should be directed to Mr. Rosso at 209-870-3214, or by mail to P.O. Box 1649, Stockton, California 95201.  Additional information also can be obtained by visiting the Company website –www.pacificstatebank.com.

SAFE HARBOR : Except for historical information contained herein, the statements
contained in this press release are forward-looking statements within the
meaning of the "safe harbor" provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are subject to risks and
uncertainties. Actual results may differ materially from those set forth in or
implied by forward-looking statements. These risks are described from time to
time in Pacific State Bancorp's Securities and Exchange Commission filings,
including its Annual Reports on Form 10-K and quarterly reports on Form 10-Q.
Pacific State Bancorp disclaims any intent or obligation to update these
forward-looking statements.