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3	Company Profile Company Founded on November 2, 1987 and Headquartered in Stockton, California Holding Company for Pacific State Bank formed June 24, 2002 Total Assets of $431 Million as of 12/31/2007 (unaudited) 9 Branches serving five counties: One new branch opened in 2006 and one opened in 2007
4	Stockton Foreclosure Problems
5	Stockton Foreclosure Problems
6	Limited Exposure to Subprime Fallout Management has not identified any borrowers with the inability to repay home equity lines, mortgages, or subdivision loans and all mortgage backed securities are guaranteed by government sponsored entities. Management does not anticipate material losses due to the subprime fallout because of conservative lending standards as evidenced by the Company experiencing net recoveries three out of the last five years. PSBC management remains committed to strong asset and deposit growth through further penetration in current markets and expansion into new markets.
7	Compounded Asset Growth at 16.5% for 5 Years
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9	2008 and Beyond Management has not identified any borrowers with the inability to repay home equity lines, mortgages, or subdivision loans. Mortgage backed securities are guaranteed by government sponsored entities. Management does not anticipate material losses due to the subprime fallout because of conservative lending standards as evidenced by the Company experiencing net recoveries three out of the last five years. Management has increased ALL&L in 2007 and will continue to add to the allowance throughout 2008. PSBC management remains committed to strong asset and deposit growth through further penetration in current markets and expansion into new markets.
10	5-Year Financial Performance
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