Steven A. Rosso, President and CEO of Pacific State Bancorp, (NASDAQ/PSBC), the parent company of Pacific State Bank, announced record annual earnings for the 9 th consecutive year.  The Company also reported double digit growth in assets for the 4 th consecutive year.  PSBC has experienced a five year growth rate in earnings of 314%% representing an average annual growth rate of 36% over that period.  Assets have also seen strong growth over the same period with a cumulative growth of 172% since 12/31/01.  This represents an average annual growth rate during the period of 23%.  This combined growth in assets and earnings has provided the foundation for PSBC’s continued exceptional financial performance in 2005. 

Pacific State Bancorp also announced record 4 th quarter net income of $1,083,000 for the Stockton, California based financial institution.  For the year ended December 31, 2005 net income was $4,286,000.  PSBC reported Total Assets as of December 31, 2005 of $309,611,000.  Rosso noted that the financial performance increases reflect continued annual and quarter over quarter improvement.

PSBC annual financial performance statistics compared to the prior year are as follows: 

Balance Sheet:

• Total Fed Funds, Interest Bearing deposits in banks and Investment Securities as of 12/31/05: $34,435,000 , an increase of $10,853,000 or 46.02%
• Net Loans as of 12/31/05: $241,556,000 , an increase of $42,021,000 or 21.06%
• Total Assets as of 12/31/05: $309,611,000 , an increase of $55,250,000 or 21.72%
• Non-Interest Deposits as of 12/31/05: $68,657,000 , an increase of $16,677,000 or 32.08%
• Total Deposits as of 12/31/05: $273,674,000 , an increase of $49,313,000 or 22.04%
• Total Share holders Equity as of  12/31/05: $21,373,000 , an increase of $4,543,000 or 26.99%

Income Statement

• Total Interest Income for the year ended 12/31/05: $18,782,000, an increase of $5,273,000 or 39.03%
• Total Interest Expense for the year ended 12/31/05: $5,216,000, an increase of $2,188,000 or 71.55%
• Net Interest Income for the year ended 12/31/05: $13,536,000, an increase of $3,085,000 or 29.52%
• Non-Interest Income for the year ended 12/31/05: $2,481,000, a decrease of $44,000 or (1.74%)
• Total Non-Interest Expense for the year ended 12/31/05: $9,110,000, an increase of $1,681,000 or 22.63%
• Net Income for the year ended 12/31/05: $4,286,000, an increase of $1,117,000 or 35.25%
• Return on Average Assets for the year ended 12/31/05: 1.52% up from 1.37%
• Return on Equity for the year ended 12/31/05: 22.44% up from 21.65%
• Efficiency Ratio for the year ended 12/31/05: 56.88% improving from 57.25%
• Basic Earnings per share for the year ended 12/31/05: $1.23, an increase of $0.31 per share or 33.70%
• Diluted Earnings per share for the year ended 12/31/05: $1.10 , an increase of $0.26 per share or 30.95%

PSBC 4 th quarter December 31, 2005 financial statistics compared to the same quarter in the prior year are as follows:

Income Statement:

• Total Interest Income for the quarter ended 12/31/05: $5,208,000, an increase of $1,207,000 or 30.17 %
• Total Interest Expense for the quarter ended 12/31/05: $1,602,000, an increase of $638,000 or 66.18%
• Net Interest Income for the quarter ended 12/31/05: $3,605,000, an increase of $569,000 or 18.74%
• Non-Interest Income for the quarter ended 12/31/05: $538,000, an increase of $2,000 or .3% 
• Total Non-Interest Expense for the quarter ended 12/31/05: $2,522,000, an increase of $412,000 or 19.53%.  The primary reason for the increase in non-interest expense was the cost associated with a small salary expense increase as compared to the 4 th quarter of 2004. One major reason for increases in non-interest expense was an accrual for litigation expense of $200,000.
• Net Income for the quarter ended 12/31/05: $1,083,000, an increase of $242,000 or 28.78%
• Return on Average Assets for the quarter ended 12/31/05: 1.52% up from 1.31% as of 12/31/04
• Return on Equity for the quarter ending 12/31/05: 20.10% up from 20.21% as of 12/31/04
• Efficiency Ratio for the quarter ending 12/31/05: 60.86% Marginally upward movement from 59.05% as of 12/31/04
• Basic Earnings per share for the quarter ending 12/31/05: $0.31, an increase of $0.01 per share or 3.33%
• Diluted Earnings per share for the quarter ending 12/31/05: $0.28, an increase of $0.14 per share or 100.00%

Attached are certain additional unaudited financial statements supporting the above financial information.  Requests for further information is required inquires should be directed to Steven A. Rosso, President and C.E.O. of Pacific State Bancorp: telephone 209-870-3214, or mail all request for further information to P.O. Box 1649, Stockton, California 95201.  Additional information can also be obtained by visiting the Company website –www.pacificstatebank.com.