Steven A. Rosso, President and C.E.O. of Pacific State Bancorp (NASDAQ/PSBC), reported record profits for the Stockton, California based financial institution.  PSBC reported 3 rd quarter net income of $1,198,000 and year-to-date net income of $3,203,000 for the period ending September 30, 2005.  PSBC reported Total Assets as of September 30, 2005 of $293,650,000.  Rosso noted that the financial performance increases reflected strong annual and quarter over quarter improvement.

PSBC quarter over quarter for September 30, 2005 compared to September 30, 2004 financial performance statistics are as follows: 
Balance Sheet:

• Total Fed Funds, Interest Bearing deposits in banks and Investment Securities as of 9/30/05: $37,851,000 , an increase of $5,523,000 or 17.08%
• Net Loans as of 9/30/05: $219,002,000 , an increase of $30,813,000 or 16.37%
• Total Assets as of 9/30/05: $293,650,000 , an increase of $42,965,000 or 17.14%
• Non-Interest Deposits as of 9/30/05: $61,509,000 , an increase of $10,009,000 or 19.43%
• Total Deposits as of 9/30/05: $258,950,000 , an increase of $39,938,000 or 18.24%
• Total Share holders Equity as of  9/30/05: $20,131,000 , an increase of $4,195,000 or 26.32%

Income Statement:

• Total Interest Income for the quarter ended 9/30/05: $5,117,000, an increase of $1,746,000 or  51.79%
• Total Interest Expense for the quarter ended 9/30/05: $1,365,000, an increase of $562,000 or 70.00%
• Net Interest Income for the quarter ended 9/30/05: $3,752,000, an increase of $1,184,000 or 46.11%
• Non-Interest Income for the quarter ended 9/30/05: $577,000, a decrease of $240,000 or (29.38%).  The decline in non-interest income was due to a reduction in Service Charges, Mortgage Fees, and Gain on Sale of loan Income as compared to the 3 rd quarter of 2004.
• Total Non-Interest Expense for the quarter ended 9/30/05: $2,361,000, an increase of $521,000 or 28.32%.  The primary reason for the increase in non-interest expense was the cost associated with the Castro Valley LPO and company wide salary expense increases as compared to the 3 rd quarter of 2004.
• Net Income for the quarter ended 9/30/05: $1,198,000, an increase of $304,000 or 34.00%
• Return on Average Assets for the quarter ended 9/30/05: 1.69% up from 1.46% as of 9/30/04
• Return on Equity for the quarter ending 9/30/05: 24.76% up from 23.53% as of 9/30/04
• Efficiency Ratio for the quarter ending 9/30/05: 54.54% improving from 54.36% as of 9/30/04
• Basic Earnings per share for the quarter ending 9/30/05: $0.35, an increase of $0.09 per share or 34.62%
• Diluted Earnings per share for the quarter ending 9/30/05: $0.31, an increase of $0.07 per share or 29.17%

PSBC Year-To-Date financial performance for the Nine Month period ending September 30, 2005 is as follows:

Balance Sheet

• Fed Funds as of 9/30/05: $16,763,000 , an increase of 100% from year end 2004. Interest Bearing Deposits in other banks as of 9/30/05 : $100,000 , a decline of $6,000,000 or (98.36%) from year end 2004. Investment securities as of 9/30/05: $20,988,000 , an increase of $3,506,000 or 20.05% from year end 2004
• Net Loans as of 9/30/05: $219,202,000 , an increase of $19,667,000 or 9.86% from year end 2004
• Total Assets as of 9/30/05: $293,650,000 , an increase of $39,289,000 or 15.45% from year end 2004
• Non-Interest Bearing Deposits as of 9/30/05: $61,509,000 , an increase of $9,529,000 or 18.33% from year end 2004
• Total Deposits as of 9/30/05: $258,950,000 , an increase of $35,189,000 or 15.73% from year end 2004
• Total Share holders Equity as of 9/30/05: $20,131,000 , an increase of $3,301,000 or 19.61% from year end 2004

Income Statement

• Total Interest Income year-to-date 9/30/05: $13,574,000, an increase of $4,066,000 or 42.76% compared to 9/30/04
• Total Interest Expense year-to-date 9/30/05: $3,644,000, an increase of $1,550,000 or 74.02% compared to 9/30/04
• Net Interest Income year-to-date 9/30/05: $9,930,000, an increase of $2,516,000 or 33.94% compared to 9/30/04
• Non-Interest Income year-to-date 9/30/05: $1,943,000, a decrease of $46,000 or (2.31%) compared to 9/30/04
• Total Non-Interest Expense year-to-date 9/30/05: $6,588,000, an increase of $1,269,000 or 23.86% compared to 9/30/04
• Net Income year-to-date 9/30/05: $3,203,000, an increase of $875,000 or 37.59% compared to 9/30/04
• Return on Average Assets year-to-date 9/30/05 1.57% up from 1.39% as of 9/30/04
• Return on Equity year-to-date 9/30/05 23.65% up from 21.72% as of 9/30/04
• Efficiency Ratio year-to-date 9/30/05 55.49% improving from 56.57% as of 9/30/04
• Basic Earnings per share year-to-date 9/30/05 $0.93, an increase of $0.30 per share or 47.62%
• Diluted Earnings per share year-to-date 9/30/05 $0.82 , an increase of $0.14 per share or 20.59%

Attached is certain additional unaudited financial data supporting the above financial information.  If 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 be obtained by visiting the Company website –www.pacificstatebank.com.