--------------------------------------------------------------------------------
                       SECURITIES AND EXCHANGE COMMISSION
--------------------------------------------------------------------------------
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

     For the quarterly period ended September 30, 2006

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     For the transition period from____________ to ____________

                        Commission file number  000-50323
                                               -----------

                               SERVICE 1ST BANCORP
        -----------------------------------------------------------------
        (Exact name of small business Issuer as specified in its Charter)

        State of California                                  32-0061893
  -------------------------------                        -------------------
  (State or other jurisdiction of                          (IRS Employer
   incorporation or organization)                        Identification No.)

                   49 W. 10th Street, Tracy, California 95376
                   ------------------------------------------
                    (Address of principal executive offices)

                                 (209) 956-7800
                ------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

      ---------------------------------------------------------------------
      (Former name, former address and former fiscal year, if changed since
                                  last report)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

Indicate by check whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes [ ] No [X]

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: 2,388,739 shares of registrant's
common stock were outstanding at November 13, 2006.


The Index to Exhibits is located at page 27.

<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                 (Unaudited)
ASSETS                                                            09/30/06         12/31/05
                                                                -------------    -------------
<S>                                                             <C>              <C>
Cash and due from banks                                         $   4,191,518    $   9,024,556
Federal funds sold                                                 18,184,272               --
                                                                -------------    -------------
       Cash and cash equivalents                                   22,375,790        9,024,556

Certificates of deposit with other banks                            2,193,720          993,720
Investment securities available-for-sale                           73,416,777       67,873,931
Investment securities held-to-maturity                              1,559,892          936,040
Loans, net                                                        109,730,879       82,533,132
Bank premises and equipment, net                                    1,355,165          671,450
Cash surrender value of life insurance                              3,534,755        3,436,150
Accrued interest receivable                                         1,164,832          958,001
Other assets                                                        3,013,131        2,902,290

                                                                -------------    -------------
       Total assets                                             $ 218,344,941    $ 169,329,270
                                                                =============    =============


LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
   Noninterest-bearing demand                                   $  34,221,522    $  27,388,426
   Money market, NOW and savings                                   89,589,504       85,127,700
   Time deposits under $100,000                                    34,715,959       13,643,135
   Time deposits $100,000 and over                                 27,648,746       24,982,406
                                                                -------------    -------------
       Total deposits                                             186,175,731      151,141,667
Junior subordinated debt securities                                 5,155,000               --
Other borrowings                                                    9,000,000        1,030,000
Accrued interest and other liabilities                              1,366,146        1,583,502
                                                                -------------    -------------

       Total liabilities                                          201,696,877      153,755,169

Shareholders' equity:
  Preferred stock, no par value, 10,000,000 shares
    authorized, none issued or outstanding                                 --               --

  Common stock, no par value, 30,000,000 shares
    authorized, issued and outstanding, 2,386,239
    shares at September 30, 2006 and
    December 31, 2005                                              15,992,913       15,992,913
  Additional paid-in-capital                                          149,374               --
  Retained earnings                                                 1,033,085          299,946
  Accumulated other comprehensive income, net of tax                 (527,308)        (718,758)

                                                                -------------    -------------
       Total shareholders' equity                                  16,648,064       15,574,101

                                                                -------------    -------------
       Total liabilities and shareholders' equity               $ 218,344,941    $ 169,329,270
                                                                =============    =============
</TABLE>

         The accompanying notes are an integral part of these consolidated
statements.

                                       2
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                             For the periods ending
                                   (unaudited)
<TABLE>
<CAPTION>
                                                        For the three months ended   For the nine months ended
                                                        --------------------------   -------------------------
                                                          09/30/06       09/30/05      09/30/06      09/30/05
                                                        -----------    -----------   -----------   -----------
<S>                                                     <C>            <C>           <C>           <C>
Interest income:
   Interest and fees on loans                           $ 2,538,177    $ 1,513,858   $ 6,702,777   $ 4,112,345
   Interest on investments                                  772,295        619,313     2,240,323     1,729,099
   Interest on fed funds sold                               100,308         48,891       124,420       156,902
   Other interest income                                      3,411         37,320        11,220        70,293
                                                        -----------    -----------   -----------   -----------
     Total interest income                                3,414,191      2,219,382     9,078,740     6,068,639

Interest expense:
   Interest expense on deposits                           1,436,635        747,603     3,488,212     1,983,999
   Interest on borrowings                                   239,476            249       442,253         1,278
                                                        -----------    -----------   -----------   -----------
     Total interest expense                               1,676,111        747,852     3,930,465     1,985,277
                                                        -----------    -----------   -----------   -----------

Net interest income before provision for loan losses      1,738,080      1,471,530     5,148,275     4,083,362

Provision for loan losses                                    90,000             --       230,000       140,000
                                                        -----------    -----------   -----------   -----------

Net interest income after provision for loan losses       1,648,080      1,471,530     4,918,275     3,943,362

Other Income:
   Service charges, fees, and other income                   68,503         87,117       205,980       233,801
   Gain on the sale of investment securities                     --          2,998            --         6,191
   Gain on sale and servicing of loans                       19,601         31,214        78,672       157,901
   Referral fees on loans                                    60,000         12,074        60,000        36,508
   Earnings on cash surrender value of life insurance        38,672         33,604       114,887        85,725
                                                        -----------    -----------   -----------   -----------
     Total other income                                     186,776        167,007       459,539       520,126

Other Expenses:
   Salaries and employee benefits                           906,868        698,042     2,550,119     1,911,333
   Occupancy expense                                        141,125         88,148       450,605       241,008
   Equipment expense                                         53,460         48,133       161,625       145,848
   Data processing and other professional fees               95,764        136,618       416,401       338,932
   Office supplies and equipment                             40,215         41,955       123,241       111,504
   Loan department expense                                   49,214         26,731       173,739        69,842
   Advertising and promotion                                 93,317         33,447       184,891       103,445
   Directors fee and expenses                                13,557         23,062        99,132        67,285
   FDIC and state assessments                                13,638         18,234        47,017        59,437
   Other operating expenses                                 216,241         76,988       355,113       225,194
                                                        -----------    -----------   -----------   -----------
     Total other expenses                                 1,623,397      1,191,358     4,561,881     3,273,828
                                                        -----------    -----------   -----------   -----------

Income before income taxes                                  211,459        447,179       815,933     1,189,660
Income tax expense                                          (35,620)        17,590        82,794       234,996
                                                        -----------    -----------   -----------   -----------

   Net income                                           $   247,079    $   429,589   $   733,139   $   954,664
                                                        ===========    ===========   ===========   ===========

Net income per share - basic                            $      0.11    $      0.18   $      0.31   $      0.40
                                                        ===========    ===========   ===========   ===========

Net income per share - diluted                          $      0.09    $      0.18   $      0.28   $      0.38
                                                        ===========    ===========   ===========   ===========
</TABLE>

         The accompanying notes are an integral part of these consolidated
statements.

                                       3
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                                         Accumulated
                                        Common Stock                                                       Other          Total
                                --------------------------                Comprehensive   Accumulated   Comprehensive  Shareholders'
                                   Shares        Amount        Surplus       Income        Deficit         Income         Equity
                                ------------  ------------  ------------  ------------   ------------   ------------   ------------
<S>                                <C>          <C>         <C>           <C>            <C>            <C>            <C>
Balance January 1, 2005            1,541,664    15,425,042  $         --                 $ (1,117,844)  $   (205,527)  $ 14,101,671


Common stock sold, net of             49,273       567,871                                                                  567,871
   costs of $11,086

Three-for-two stock split
including cash for
fractional shares                    795,302                                                   (4,829)                       (4,829)

Comprehensive income:
  Net income                                                              $  1,422,619      1,422,619                     1,422,619
  Unrealized losses on
    securities net of
    taxes of $357,867                                                         (509,594)            --       (509,594)      (509,594)

  Reclassification
    adjustment for gains
    included in net income,
    net of tax of $2,554                                                        (3,637)            --         (3,637)        (3,637)
                                                                          ------------
  Comprehensive income                                                    $    909,388
                                                                          ============

                                ------------  ------------  ------------                 ------------   ------------   ------------
Balance December 31, 2005          2,386,239    15,992,913            --                      299,946       (718,758)    15,574,101


  Surplus from options expense                                   149,374                                                     99,298
Comprehensive income:
  Net income                                                              $    733,139        733,139                       733,139
  Unrealized gain on
     securities net of taxes
     of $134,700                                                               191,450                       191,450        191,450
                                                                          ------------
  Comprehensive income                                                    $    924,589
                                                                          ============

                                ------------  ------------  ------------                 ------------   ------------   ------------
Balance September 30, 2006         2,386,239  $ 15,992,913  $    149,374                 $  1,033,085   $   (527,308)  $ 16,648,064
                                ============  ============  ============                 ============   ============   ============
</TABLE>

         The accompanying notes are an integral part of the financial
statements.

                                       4
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     For the nine months ended September 30,
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                        2006            2005
                                                                                    ------------    ------------
<S>                                                                                 <C>             <C>
Operating activities:
  Net income                                                                        $    733,139    $    954,664
Adjustments to reconcile net income to net cash from operating activities:
   Provision for loan losses                                                             230,000         140,000
   Depreciation                                                                          128,728         130,460
   Amortization and accretion on securities                                              190,154         233,349
   Gain on sale of securities, net                                                            --          (6,191)
   Earnings on cash surrender value life insurance, net                                  (98,605)        (72,784)
   Options expense                                                                       149,374              --
   Gain on sale of loans                                                                 (12,733)        (67,226)
   Increase in accrued interest                                                         (206,831)       (292,586)
   Increase in other assets                                                             (249,193)       (666,452)
   (Decrease) Increase in accrued expenses and other liabilities                        (217,356)        466,354
                                                                                    ------------    ------------
 Net cash provided by operating activities                                               646,677         819,588

Investing activities:
  Purchases of securities available-for-sale                                         (12,330,690)    (30,761,032)
  Purchases of securities held to maturity                                              (680,482)             --
   Proceeds from sales of available-for-sale securities                                       --       1,396,477
    Proceeds from payments, maturities and calls of available-for-sale securities      6,951,080      13,457,021
    Proceeds from payments, maturities and calls of held-to-maturity securities           33,042         208,981
  Net increase in loans                                                              (27,565,014)     (8,107,063)
  Proceeds from sales of loans                                                           150,000         955,223
    Net redemption of certificates of deposit at other banks                          (1,200,000)       (853,799)
  Purchase of Bank Owned Life Insurance                                                       --      (1,000,000)
  Purchases of premises and equipment                                                   (812,443)       (147,545)
                                                                                    ------------    ------------
 Net cash used by investing activities                                               (35,454,507)    (24,851,737)

Financing activities:
  Net increase in demand, interest-bearing deposits and savings                       32,367,724      33,369,449
  Net increase in time deposits                                                        2,666,340       5,565,048
    Net proceeds from sale of stock (proceeds from sale of common stock,
        net of costs)                                                                         --         567,871
  Cash paid in lieu of stock splits and dividends                                             --          (4,829)
  Increase in junior subordinated debts                                                5,155,000              --
  Proceeds from new borrowings                                                         7,970,000              --
                                                                                    ------------    ------------
 Net cash provided by financing activities                                            48,159,064      39,497,539
                                                                                    ------------    ------------

Net increase in cash and cash equivalents                                             13,351,234      15,465,390
Cash and cash equivalents at beginning of period                                       9,024,556      11,042,365
                                                                                    ------------    ------------

Cash and cash equivalents at end of period                                          $ 22,375,790    $ 26,507,755
                                                                                    ============    ============

Supplemental disclosures of cash flow information:
  Interest                                                                          $  3,853,017    $  1,979,746
  Income taxes                                                                      $    432,000    $    120,000
</TABLE>

         The accompanying notes are an integral part of the financial
statements.

                                       5
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION AND MANAGEMENT REPRESENTATION

         The accompanying unaudited consolidated financial statements of Service
1st Bancorp (the "Company") have been prepared in accordance with the
instructions to Form 10-QSB and, therefore, do not include information or
footnote disclosures required by generally accepted accounting principles for
complete financial statements. For further information, refer to the financial
statements and related footnotes included in the Company's annual report on Form
10-KSB for the year ended December 31, 2005. In the opinion of management, the
financial statements presented herein include all adjustments (consisting of
normal recurring accruals) necessary to present fairly, in all material
respects, the financial position of the Company as of September 30, 2006 and the
Company's income statement for the three months and nine months ended September
30, 2006 and 2005, and the statement of cash flows for the nine months ended
September 30, 2006 and 2005. Operating results for interim periods are not
necessarily indicative of operating results for an entire fiscal year.

         The balance sheet as of December 31, 2005, has been derived from the
audited balance sheet as of that date.

Reclassifications

         Certain reclassifications were made to prior periods presented to
conform to the current year. These reclassifications are of a normal recurring
nature.

Stock-Based Compensation

         On January 1, 2006, the Company adopted SFAS No. 123 (revised 2004)
(SFAS No. 123R), "Share-Based Payment", which addresses the accounting for
stock-based payment transactions in which an enterprise receives employee
services in exchange for (a) equity instruments of the enterprise or (b)
liabilities that are based on the fair value of the enterprise's equity
instruments or that may be settled by issuance of such equity instruments. In
January 2005, the Securities and Exchange Commission (SEC) issued Staff
Accounting Bulletin (SAB) No. 107, which provides supplemental implementation
guidance for SFAS No. 123R. SFAS No. 123R eliminates the ability to account for
stock-based compensation transactions using the intrinsic value method under
Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued
to Employees", and instead generally requires that such transactions be
accounted for using a fair-value-based method. SFAS No. 123R requires the use of
a valuation model to calculate the fair value of stock-based awards. The Company
has elected to use the Black-Scholes Model for option valuation. This model
incorporates various assumptions including volatility, expected life, and
interest rates. The expected volatility is based on the historical volatility of
the Company's common stock over the most recent period commensurate with the
estimated expected life of the Company's stock options adjusted for the impact
of unusual fluctuations not reasonably expected to recur and other relevant
factors. The expected life of an award is based on historical experience and on
the terms and conditions of the stock awards granted to employees.

         The assumptions used for the nine-month period ended September 30, 2006
are as follows:

                WEIGHTED AVERAGE ASSUMPTIONS FOR OPTIONS GRANTED
                            DURING THE PERIOD ENDED:

                                                   September 30, 2006
                                                   ------------------
                 Expected Life                              72 months
                 Stock Volatility                              55.58%
                 Risk free interest rate                        4.77%
                 Dividend yield                                 0.00%

         The Company has elected the modified prospective transition method as
permitted by SFAS No. 123R and accordingly prior periods have not been restated
to reflect the impact of SFAS No. 123R. The modified prospective transition
method requires that stock-based compensation expense be recorded for all new
and unvested stock options, restricted stock, restricted stock units, and
employee stock purchase plan shares that are ultimately expected to vest as the
requisite service is rendered beginning on January 1, 2006, the first day of the
Company's fiscal year 2006. Stock-based

                                       6
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION AND MANAGEMENT REPRESENTATION (continued)

compensation expense for awards granted prior to January 1, 2006 is based on the
grant date fair-value as determined under the pro forma provisions of SFAS No.
123. The Company has recorded an incremental $50,076 of stock-based compensation
expense during the quarter ended September 30, 2006 and $149,374 for the nine
months ended September 30, 2006 as a result of the adoption of SFAS No. 123R.

         Prior to the adoption of SFAS No. 123R, the Company measured
compensation expense for its employee stock-based compensation plans using the
intrinsic value method prescribed by APB Opinion No. 25. The Company applied the
disclosure provisions of SFAS No. 123 as amended by SFAS No. 148, Accounting for
Stock-Based Compensation - Transition and Disclosure as if the fair-value-based
method had been applied in measuring compensation expense. Under APB Opinion No.
25, when the exercise price of the Company's employee stock options was equal to
the market price of the underlying stock on the date of the grant, no
compensation expense was recognized.

         The following table illustrates the effect on net income after taxes
and net income per common share as if the Company had applied the fair value
recognition provisions of SFAS No. 123 to stock-based compensation during the
three month and nine month periods ended September 30, 2005 (in thousands,
except per share amounts):

<TABLE>
<CAPTION>
                                                                     For the three         For the nine
                                                                     months ended          months ended
                                                                  September 30, 2005    September 30, 2005
                                                                  ------------------    ------------------
<S>                                                               <C>                   <C>
         Net income as reported                                   $          429,589    $          954,664

         Deduct: Total stock-based
           employee compensation expense determined under fair
           value based method of all awards, net of related tax
           effects                                                $          (42,942)   $          (69,116)
                                                                  ------------------    ------------------

         Pro forma net income                                     $          386,647    $          885,548
                                                                  ==================    ==================

         Earnings per share:

         Basic-as reported                                        $             0.18    $             0.40
         Basic-pro forma                                          $             0.18    $             0.38

         Diluted-as reported                                      $             0.18    $             0.38
         Diluted-pro forma                                        $             0.18    $             0.35

</TABLE>

                                       7
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - EARNINGS PER SHARE (EPS)

         Basic EPS excludes dilution and is computed by dividing income
available to common shareholders' by the weighted-average number of common
shares outstanding for the period. Diluted EPS reflects the potential dilution
that could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in earnings of the entity as of September 30, 2006 and
2005. Weighted average shares outstanding used in the computation of basic
earnings per share were 2,386,239 and 2,381,219 in 2006 and 2005, respectively.
Weighted average shares outstanding used in the computation of diluted earnings
per share were 2,574,780 and 2,506,302 in 2006 and 2005, respectively. All
earnings per share data have been retroactively adjusted for the three-for-two
stock split declared on September 15, 2005 for shareholders of record on
September 29, 2005.

NOTE 3 - SECURITIES

         Securities are classified in three categories and accounted for as
follows: debt and equity securities that the Company has the positive intent and
ability to hold to maturity are classified as held-to-maturity and are measured
at amortized cost; debt and equity securities bought and held principally for
the purpose of selling in the near term are classified as trading securities and
are measured at fair value, with unrealized gains and losses included in
earnings; debt and equity securities not classified as either held-to-maturity
or trading securities are deemed available-for-sale and are measured at fair
value, with unrealized gains and losses, net of applicable taxes reported in a
separate component of stockholders' equity. Any gains or losses on sales of
investments are computed on a specific identification basis.

         The tables below reflect the composition of investment securities,
amortized cost, unrealized gains and losses and estimated fair values as of
September 30, 2006.

The amortized cost or fair values of investment securities available-for-sale at
September 30, 2006 were:

<TABLE>
<CAPTION>
                                                            Gross           Gross          Estimated
                                            Amortized     Unrealized      Unrealized         Fair
                                              Cost          Gains           Losses           Value
                                          ------------   ------------    ------------    ------------
<S>                                       <C>            <C>             <C>             <C>
Available-for-Sale Securities:
Obligations of U.S. Government Agencies   $ 36,650,634   $      6,460    $   (382,242)   $ 36,274,852
State and political subdivisions            14,371,775         25,449         (54,535)     14,342,689
Asset backed-securities                      7,274,820          4,357        (139,112)      7,140,065
Mortgage backed-securities                  15,517,248          7,898        (365,975)     15,159,171
Short-term mutual funds                        500,000             --              --         500,000
                                          ------------   ------------    ------------    ------------
                                          $ 74,314,477   $     44,164    $   (941,864)   $ 73,416,777
                                          ============   ============    ============    ============

The amortized cost or fair values of investment securities held-to-maturity at
September 30, 2006 were:

<CAPTION>
                                                            Gross           Gross          Estimated
                                            Amortized     Unrealized      Unrealized         Fair
                                              Cost          Gains           Losses           Value
                                          ------------   ------------    ------------    ------------
<S>                                       <C>            <C>             <C>             <C>
Held-to-Maturity Securities:
Obligations of U.S. Government Agencies   $    500,410   $         --    $    (12,591)   $    487,819
State and political subdivisions               827,933         73,385              --         901,318
Asset backed-securities                         30,852             --              --          30,852
Mortgage backed-securities                     200,698          3,121            (170)        203,649
                                          ------------   ------------    ------------    ------------
                                          $  1,559,892   $     76,506    $    (12,761)   $  1,623,637
                                          ============   ============    ============    ============
</TABLE>

         Securities carried at approximately $60,646,000 were pledged to secure
deposits of public funds and borrowing arrangements.

                                       8
<PAGE>

                               SERVICE 1ST BANCORP
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - SECURITIES cont'd

         The tables below reflect the composition of investment securities,
amortized cost, unrealized gains and losses and estimated fair values as of
December 31, 2005.

The amortized cost or fair values of investment securities available-for-sale at
December 31, 2005 were:

<TABLE>
<CAPTION>
                                                       Gross           Gross          Estimated
                                       Amortized     Unrealized      Unrealized         Fair
                                         Cost          Gains           Losses           Value
                                     ------------   ------------    ------------    ------------
<S>                                  <C>            <C>             <C>             <C>
Available-for-Sale Securities:
  U.S. Government Agencies           $ 30,207,518   $         11    $   (550,676)   $ 29,656,853
  State and political subdivisions     11,755,328          3,437        (140,036)     11,618,729
  Asset backed-securities               8,645,767            276        (161,611)      8,484,432
  Mortgage backed-securities           18,488,944          5,762        (380,789)     18,113,917
                                     ------------   ------------    ------------    ------------

                                     $ 69,097,557   $      9,486    $ (1,233,112)   $ 67,873,931
                                     ============   ============    ============    ============

The amortized cost or fair values of investment securities held-to-maturity at
December 31, 2005 were:
<CAPTION>

<S>                                  <C>            <C>             <C>             <C>
Held-to-Maturity Securities:
  State and political subdivisions   $    623,646   $     19,382    $         --    $    643,028
  Asset backed-securities                  82,721            414              --          83,135
  Mortgage backed-securities              229,673          3,174            (536)        232,311
                                     ------------   ------------    ------------    ------------

                                     $    936,040   $     22,970    $       (536)   $    958,474
                                     ============   ============    ============    ============
</TABLE>

         Securities carried at approximately $38,531,000 were pledged to secure
deposits of public funds and borrowing arrangements.

                                       9
<PAGE>

NOTE 4 - LOANS

         Service 1st Bank's customers are primarily located in San Joaquin
County. At September 30, 2006, approximately 65.4% of the Bank's loans are for
real estate and construction loans and approximately 21.8% of the Bank's loans
are for general commercial users including professional, retail, and small
businesses. Consumer loans make up approximately 2.1% of the loan portfolio,
leases make up 6.8% of the loan portfolio, with agricultural loans making up the
remaining 3.9%. Generally, real estate loans are collateralized by real property
while commercial and other loans are collateralized by funds on deposit,
business or personal assets. Repayment is generally expected from the sale of
property for real estate loans and cash flows of the borrowers for other loans.

Major classifications of loans were:
                                                  9/30/2006         12/31/2005
                                                -------------     -------------
Construction and land development loans         $  35,520,963     $  27,787,719
Real estate loans                                  37,275,359        33,672,659
Commercial loans                                   24,289,294        18,109,304
Leases                                              7,592,910                --
Agricultural loans                                  4,313,156         1,964,690
Consumer loans                                      2,311,656         2,430,356
                                                -------------     -------------
                                                  111,303,338        83,964,728
Deferred loan fees and costs                         (213,409)         (308,102)
Allowance for loan losses                          (1,359,050)       (1,123,494)
                                                -------------     -------------

    Total net loans                             $ 109,730,879     $  82,533,132
                                                =============     =============

                                       10
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

         Certain matters discussed or incorporated by reference in this
Quarterly Report on Form 10-QSB including, but not limited to, matters described
in "Item 2 - Management's Discussion and Analysis or Plan of Operation," are
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933,
as amended. Such forward-looking statements may contain words related to future
projections including, but not limited to, words such as "believe," "expect,"
"anticipate," "intend," "may," "will," "should," "could," "would," and
variations of those words and similar words that are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from those projected. Factors that could cause or contribute to such
differences include, but are not limited to, the following: (1) variances in the
actual versus projected growth in assets; (2) return on assets; (3) loan and
lease losses; (4) expenses; (5) changes in the interest rate environment
including interest rates charged on loans, earned on securities investments and
paid on deposits; (6) competition effects; (7) fee and other noninterest income
earned; (8) general economic conditions nationally, regionally, and in the
operating market areas of the Company and its subsidiaries; (9) changes in the
regulatory environment; (10) changes in business conditions and inflation; (11)
changes in securities markets; (12) data processing problems; (13) a decline in
real estate values in the Company's operating market areas; (14) the effects of
earthquakes, floods, fires and other natural disasters, (15) terrorism, the
threat of terrorism or the impact of the current military conflict in Iraq and
the conduct of the war on terrorism by the United States and its allies, as well
as other factors. Other cautionary statements and information set forth in this
report should be carefully considered and understood as being applicable to all
related forward-looking statements contained in this report, when evaluating the
business prospects of the Company and its subsidiaries.

         Forward-looking statements are not guarantees of performance. By their
nature, they involve risks, uncertainties and assumptions. The future results
and shareholder values may differ significantly from those expressed in these
forward-looking statements. You are cautioned not to put undue reliance on any
forward-looking statement. Any such statement speaks only as of the date of this
report, and in the case of any documents that may be incorporated by reference,
as of the date of those documents. We do not undertake any obligation to update
or release any revisions to any forward-looking statements, to report any new
information, future event or other circumstances after the date of this report
or to reflect the occurrence of unanticipated events, except as required by law.
However, your attention is directed to any further disclosures made on related
subjects in our subsequent reports filed with the Securities and Exchange
Commission on Forms 10-KSB, 10-QSB and 8-K.

BUSINESS ORGANIZATION

         Service 1st Bancorp (the "Company") is a California corporation and was
incorporated on January 23, 2004 to act as a holding company for Service 1st
Bank (the "Bank"). The Bank became a subsidiary of the Company effective June
26, 2004. As of September 30, 2006, the Company maintained its administrative
office in Tracy, San Joaquin County and the Bank operated three full-service
offices in the cities of Stockton, Tracy, and Lodi in San Joaquin County. The
Bank offers a full range of commercial banking services to individuals, small
and medium-sized businesses, municipalities and professionals in San Joaquin
County and the surrounding communities. On August 18, 2006, the Company
established a new subsidiary, Charter Services Group, Inc. ("Charter"). Charter
will assist new (de novo) banks in filing applications for regulatory approval
to organize and to commence business as a commercial bank. Charter will also
provide consulting services to new banks including formulating policies and
providing other ongoing services.

         The following analysis is designed to provide a more complete
understanding of the material changes and trends related to the Company's
financial condition, results of operations, cash flows, and capital resources.
This discussion should be read in conjunction with the financial statements
included in Item 1 of the Annual Report on Form 10-KSB for the year ended
December 31, 2005.

CRITICAL ACCOUNTING POLICIES

 Use of Estimates in the Preparation of Financial Statements

         The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires the
Company's management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates. Note 1 to the financial statements describes the
significant accounting policies used in the preparation of the financial
statements. A critical accounting policy is defined as one that is both material
to the presentation of the Company's financial statements and requires

                                       11
<PAGE>

management to make difficult, subjective or complex judgments that could have a
material effect on the Company's financial condition and results of operations.
Management believes that the matters described below are critical accounting
policies.

Allowance for Loan Losses

         The allowance for loan losses is established through a provision for
loan losses charged to expenses. Loans are charged against the allowance for
loan losses when management believes that the collectibility of the principal is
unlikely. The allowance is an amount that management believes will be adequate
to absorb losses inherent in existing loans and commitments to extend credit,
based on evaluations of collectibility and prior loss experience of loans and
commitments to extend credit. The evaluations take into consideration such
factors as changes in the nature and volume of the portfolio, overall portfolio
quality, loan concentration, specific problem loans, commitments, and current
economic conditions that may affect the borrowers' ability to pay.

Summary of Financial Condition

         The Company's total consolidated assets increased 28.9% from December
31, 2005 to September 30, 2006. As of September 30, 2006, total consolidated
assets were $218,344,941 compared to $169,329,270 as of December 31, 2005, and
$177,827,848 at September 30, 2005. The increase in growth was primarily from an
increase in loans and Federal Funds sold.

         Total net loans at September 30, 2006 were $109,730,879 compared to
$82,533,132 at December 31, 2005 and $75,401,414 at September 30, 2005. This
represents an increase in net loans of 33.0% from December 31, 2005.

         Cash and due from banks declined 53.6% from December 31, 2005 to
September 30, 2006. In the last quarter of 2005, the Company requested
permission from the Federal Reserve Bank of San Francisco to implement a deposit
reclassification program. The program allows banks to treat a portion of their
demand deposit accounts as savings accounts for regulatory reporting purposes.
This reclassification significantly decreases the uninvested cash that banks
must reserve for demand deposit accounts. The Company was able to reduce its
reserve requirement by approximately $5.1 million. Those funds were utilized to
fund the Bank's loan growth.

         Total deposits were $186,175,731 at September 30, 2006 compared to
$151,141,667 at December 31, 2005 and $161,043,079 at September 30, 2005.
Noninterest-bearing DDA accounts increased from $27,388,426 at December 31, 2005
to $34,221,522 at September 30, 2006. Money market, NOW, and savings accounts
increased to $89,589,504 at September 30, 2006 from $85,127,700 at December 31,
2005. Time deposits under $100,000 increased from $13,643,135 at December 31,
2005 to $34,715,959 at September 30, 2006. Time deposits of $100,000 and over
increased from $24,982,406 at December 31, 2005 to $27,648,746 at September 30,
2006. The increase in time deposits under $100,000 was primarily from the Bank's
participation in the national Certificate of Deposit Account Registry (CDARS)
program. Through this program, the Bank can offer $30,000,000 of FDIC insurance
coverage for time deposits. When the Bank places these deposits into the CDARS
network, it has the option of receiving reciprocal deposits from other banks in
the network. Reciprocal deposits from the CDARS program increased from
$8,266,739 at December 31, 2005 to $26,832,183 at September 30, 2006. The
increase in time deposits over $100,000 was primarily from an increase in time
deposits from the State of California.

          Other borrowings at September 30, 2006 were $14,155,000 compared to
$1,030,000 at December 31, 2005. The borrowings were utilized to fund the rapid
growth in new loan originations. The borrowings consist of $9,000,000 from the
Federal Home Loan Bank of San Francisco and $5,155,000 of Trust Preferred
Securities.

Results of Operations

         Net income for the three months ended September 30, 2006 was $247,079
compared to $429,589 for the third quarter of 2005. Net income for the nine
months ended September 30, 2006 was $733,139 compared to $954,664 for September
30, 2005. For the three months ended September 30, 2006, the Company had a tax
credit of $35,620 compared to tax expense of $17,590 in the same quarter of
2005. Income tax expense for the nine months ended September 30, 2006 was
$82,794 compared to $234,996 for the same time period in 2005. During 2006, the
Company has been able to reduce its tax liability as a result of an increase in
tax exempt bonds and four tax leases. At September 30, 2006, the average amount
invested in tax exempt bonds was $14,218,499 compared to an average amount
invested for the nine months ended September 30, 2005 of $1,927,240. The average
amount in tax leases for the nine months ended September 30, 2006 was

                                       12
<PAGE>

$2,826,865. There were no leases outstanding during the nine months ended
September 30, 2005. Tax leases allow the Company to recognize accelerated
depreciation expense for tax purposes which exceeds the rental income earned for
tax purposes.

         Basic earnings per share for the three months ended September 30, 2006
were $0.11 per share compared to $0.18 for the three months ended September 30,
2005. Diluted earnings per share for the three months ended September 30, 2006
and 2005 were $0.09 and $0.18, respectively. Basic earnings per share for the
nine months ended September 30, 2006 were $0.31 per share compared to $0.40 for
2005. Diluted earnings per share for the nine months ended September 30, 2006
were $0.28 compared to $0.38 for 2005.

         The decline in income before income taxes for the three months and nine
months ended September 30, 2006 was primarily from the staffing for the new Lodi
branch opened in mid-August 2006. The Bank hired staff and conducted an
extensive training program in preparation for the opening of the branch. The
Bank has also incurred a $21,882 monthly increase in rental expense for Lodi.

         Another factor contributing to the decline in income before taxes was
the adoption of SFAS No. 123R. The Company had stock based compensation expense
of $50,076 for the third quarter of 2006 and $149,374 of expense for the nine
months ended September 30, 2006. There was no expense reflected on the income
statement for this compensation in 2005.

                                       13
<PAGE>

Net Interest Income and Net Interest Margin

         Net interest income, the primary component of the net earnings of a
financial institution, refers to the difference between the interest earned on
loans and investments and the interest paid on deposits and borrowings. Please
see the tables of average balance sheet and net interest income below.

         The following table sets forth average balance sheet information,
interest income and expense, average yields and rates, and net interest income
and margin for the three months ended September 30, 2006 and 2005:

<TABLE>
<CAPTION>
                                                  September 30, 2006                               September 30, 2005
                                   ----------------------------------------------    ----------------------------------------------
                                                                      Average                                            Average
                                      Average          Income/        Yield or          Average         Income/          Yield or
                                      Balance          Expense       Rate Paid          Balance         Expense         Rate Paid
                                   -------------    -------------   -------------    -------------    -------------   -------------
<S>                                <C>              <C>                      <C>     <C>              <C>                      <C>
Interest-earning assets:
Interest-bearing deposits          $   1,041,547    $       8,761            3.34%   $   4,931,168    $      37,320            3.00%
Investments                           67,860,945          766,945            4.48%      64,021,749          619,313            3.84%
Federal funds sold                     7,967,842          100,308            4.99%       5,761,044           48,891            3.37%
Loans (1) (2)                        112,096,685        2,538,177            8.98%      75,151,683        1,513,858            7.99%
                                   -------------    -------------                    -------------    -------------
   Total interest-earning assets     188,967,019        3,414,191            7.17%     149,865,644        2,219,382            5.88%

Allowance for possible loan losses    (1,300,354)                                       (1,102,855)
Cash and due from banks                3,427,031                                         8,303,313
Bank premises and equipment            1,300,373                                           630,808
Accrued interest receivable              970,312                                           571,664
Other assets                           7,891,742                                         5,218,142
                                   -------------                                     -------------
   Total assets                    $ 201,256,123                                     $ 163,486,716
                                   =============                                     =============

Interest-Bearing Liabilities:
Demand deposits                    $  59,569,752          592,819            3.95%   $  68,549,822          408,574            2.36%
Savings and money market accounts     20,893,768          164,562            3.12%      16,946,875           55,874            1.31%
Time Deposits                         58,924,400          679,254            4.57%      29,515,291          283,155            3.81%
Other borrowings                      16,640,680          239,476            5.71%          29,007              249            3.41%
                                   -------------    -------------                    -------------    -------------
   Total interest-bearing
      liabilities                    156,028,600        1,676,111            4.26%     115,040,995          747,852            2.58%

Non-interest bearing demand
 deposits                             28,966,666                                        31,058,139
Other Liabilities                        374,145                                         2,104,601
                                   -------------                                     -------------
   Total liabilities                 185,369,411                                       148,203,735
Shareholders' equity                  15,886,712                                        15,282,981
                                   -------------                                     -------------
   Total liabilities and
     shareholders' equity          $ 201,256,123                                     $ 163,486,716
                                   =============                                     =============

                                                    -------------                                     -------------
Net interest income                                 $   1,738,080                                     $   1,471,530
                                                    =============                                     =============
Net interest margin on average
  interest earning assets (3)                                                3.65%                                             3.90%
</TABLE>

1. Average loan balances include average deferred loan fees of $250,542 and
   $257,718 for the three months ended September 30, 2006 and 2005,
   respectively.
2. Interest on loans includes fees of $59,332 and $58,391 for the three month
   periods ended September 30, 2006 and 2005, respectively.
3. Net interest margin is computed by dividing net interest income by total
   average earning assets.

All average balances have been computed using daily balances.

                                       14
<PAGE>

The following table sets forth average balance sheet information, interest
income and expense, average yields and rates, and net interest income and margin
for the nine months ended September 30, 2006 and 2005:

<TABLE>
<CAPTION>
                                                  September 30, 2006                               September 30, 2005
                                   ----------------------------------------------    ----------------------------------------------
                                                                      Average                                            Average
                                      Average          Income/        Yield or          Average         Income/          Yield or
                                      Balance          Expense       Rate Paid          Balance         Expense         Rate Paid
                                   -------------    -------------   -------------    -------------    -------------   -------------
<S>                                <C>              <C>                      <C>     <C>              <C>                      <C>
Interest-earning assets:
Interest-bearing deposits          $     897,017    $      27,438            4.09%   $   3,078,635    $      70,293            3.05%
Investments                           68,839,982        2,224,105            4.32%      60,000,199        1,729,099            3.85%
Federal funds sold                     3,388,930          124,420            4.91%       7,368,731          156,902            2.85%
Loans (1) (2)                        101,490,247        6,702,777            8.83%      71,767,514        4,112,345            7.66%
                                   -------------    -------------                    -------------    -------------
   Total interest-earning assets     174,616,176        9,078,740            6.95%     142,215,079        6,068,639            5.71%

Allowance for loan losses             (1,215,695)                                       (1,055,112)
Cash and due from banks                3,483,696                                         8,333,333
Bank premises and equipment              938,475                                           634,898
Accrued interest receivable              898,144                                           580,627
Other assets                           6,622,173                                         4,598,125
                                   -------------                                     -------------
   Total assets                    $ 185,342,969                                     $ 155,306,950
                                   =============                                     =============

Interest-bearing liabilities:
Demand deposits                    $  65,330,587        1,606,003            3.29%   $  68,856,056        1,081,281            2.10%
Savings and money market accounts     16,710,480          292,878            2.34%      15,359,741          129,676            1.13%
Time Deposits                         48,616,873        1,589,331            4.37%      27,843,439          773,042            3.71%
Other borrowings                      10,682,992          442,253            5.53%          53,643            1,278            3.19%
                                   -------------    -------------                    -------------    -------------
   Total interest-bearing
      liabilities                    141,340,932        3,930,465            3.72%     112,112,879        1,985,277            2.37%

Non-interest bearing demand
  deposits                            27,359,286                                        26,976,900
Other Liabilities                        873,872                                         1,281,344
                                   -------------                                     -------------
   Total liabilities                 169,574,090                                       140,371,123

Shareholders' equity                  15,768,879                                        14,935,827
                                   -------------                                     -------------
   Total liabilities and
      shareholders' equity         $ 185,342,969                                     $ 155,306,950
                                   =============                                     =============

                                                    -------------                                     -------------
Net interest income                                 $   5,148,275                                     $   4,083,362
                                                    =============                                     =============
Net interest margin on average
  interest earning assets (3)                                                3.94%                                             3.84%
</TABLE>

1.  Average loan balances include average deferred loan fees of $277,613 and
    $235,050 for the nine months ended September 30, 2006 and 2005,
    respectively.
2.  Interest on loans includes fees of $169,764 and $149,251 for the nine
    months ended September 30, 2006 and 2005, respectively.
3.  Net interest margin is computed by dividing net interest income by total
    average earning assets.

All average balances have been computed using daily balances.

                                       15
<PAGE>

         Net interest income for the three months ended September 30, 2006 was
$1,738,080 compared to $1,471,530 for 2005. Net interest income for the nine
months ended September 30, 2006 was $5,148,275 compared to $4,083,362 for 2005.
Average interest-earning assets for the three months ended September 30, 2006
were $188,967,019 compared to $149,865,644 during the same three months of 2005.
The yield earned on average interest-earning assets during the third quarter of
2006 was 7.17% compared to 5.88% during the third quarter of 2005. The average
rate paid on interest bearing-liabilities increased from 2.58% for the third
quarter of 2005 to 4.26% during the third quarter of 2006. Average
interest-earning assets for the nine months ended September 30, 2006 was
$174,616,176 compared to $142,215,079 during the same nine months of 2005. The
yield earned on average interest-earning assets during the nine months ended
September 30, 2006 was 6.95% compared to 5.71% during the same period of 2005.
The average rate paid on interest bearing liabilities increased to 3.72% for the
nine months ended September 30, 2006 compared to 2.37% during the same period
for 2005. The increase in rates earned on loans, investments, and paid on
deposits and borrowings was a result of the Federal Reserve Bank raising
interest rates seventeen times from July 1, 2004 through June 29, 2006.

Allowance and Provision for Loan Losses

         The Company assesses and manages credit risk on an ongoing basis
through stringent credit review and approval policies, extensive internal
monitoring, and established formal lending policies. Additionally, the Bank
contracts with an outside source to periodically review the existing loan
portfolio.

         Management believes its ability to identify and assess risk and return
characteristics of the Company's loan portfolio is critical for profitability
and growth. Management strives to continue the historically low level of credit
losses by continuing its emphasis on credit quality in the loan approval
process, active credit administration, and regular monitoring. Management has
implemented a loan review and grading system that functions to continually
assess the credit risk inherent in the loan portfolio.

         In extending credit and commitments to borrowers, the Bank generally
requires collateral and/or guarantees as security. The repayment of such loans
is expected to come from cash flows or from proceeds from the sale of selected
assets of the borrowers. The Bank's requirement for collateral and/or guarantees
is determined on a case-by-case basis in connection with management's evaluation
of the creditworthiness of the borrower. Collateral held varies, but may include
accounts receivable, inventory, property, plant and equipment, income-producing
properties, residences, and other real property.

         Construction loans and other real estate secured loans comprise 65.4%
of total loans outstanding at September 30, 2006. Although management believes
such loans have no more than the normal risk of collectibility, a substantial
decline in the economy in general, or a decline in real estate values in the
Company's primary operating market areas in particular, could have an adverse
impact on the collectibility of such loans. In addition, such an occurrence
could result in an increase in loan losses and an increase in the provision for
loan losses, which could adversely affect the Company's future prospects,
results of operations, overall profitability, and the market price of the
Company's common stock.

         The provision for loan losses for the three months ended September 30,
2006 was $90,000 compared to $0 during the same quarter of 2005. The provision
for loan losses for the nine months ended September 30, 2006 was $230,000,
compared to $140,000 during the same period of 2005. At September 30, 2006, the
allowance for loan losses was $1,359,050 compared to $1,123,494 at December 31,
2005. The ratio of allowance for loan losses to gross loans was 1.22% at
September 30, 2006 compared to 1.34% at December 31, 2005. The allowance for
loan losses is adjusted by charges to income and decreased by charge-offs (net
of recoveries). Management's periodic evaluation of the adequacy of the
allowance is based on past loan loss experience, known and inherent risks in the
portfolio, adverse situations that may affect the borrower's ability to repay,
the estimated value of any underlying collateral, and current economic
conditions. Additional provisions will be added as new loans are placed on the
books in an amount adequate to support the risks inherent in the portfolio.

                                       16
<PAGE>

         The following table summarizes the changes in the allowances for loan
losses arising from loans charged-off, recoveries on loans previously
charged-off, and additions to the allowance which have been charged to operating
expenses and certain ratios relating to the allowance for loan losses.

<TABLE>
<CAPTION>
                                                                 For the nine months
                                                                 ended September 30,
                                                           -------------------------------
                                                                2006              2005
                                                           -------------     -------------
<S>                                                        <C>               <C>
Outstanding Loans:
  Average for the Period                                   $ 101,490,247     $  71,767,514
  End of the Period                                          111,303,338        76,773,182
Allowance For Loan Losses:
Balance at Beginning of Year                                   1,123,494           963,000
Actual Charge-Offs:
  Commercial                                                          --                --
  Consumer                                                            --            (4,506)
  Real Estate                                                         --                --
                                                           -------------     -------------
Total Charge-Offs                                                     --            (4,506)
                                                           -------------     -------------
Less Recoveries:
  Commercial                                                          --                --
  Consumer                                                         5,556                --
  Real Estate                                                         --                --
                                                           -------------     -------------
Total Recoveries                                                   5,556                --
                                                           -------------     -------------
Net Loans Charged-Off                                              5,556            (4,506)
Provision for Loan Losses                                        230,000           140,000
                                                           -------------     -------------
Balance at End of Period                                   $   1,359,050     $   1,098,494
                                                           =============     =============
Ratios:
Net Loans Charged-Off (Recoveries) to Average Loans                 (.01)%            0.01%
Allowance for Loan Losses to Total Loans                            1.22%             1.43%
Net Loans Charged-Off (Recoveries) to Beginning
  Allowance for Loan Losses                                         (.49)%            0.47%
Net Loans Charged-Off (Recoveries) to Provision for Loan
Losses                                                             (2.42)%            3.22%

Allowance for Loan Losses to Nonperforming Loans                  308.15%         1,838.95%
</TABLE>

Nonaccrual Loans, Loans Past Due 90 Days and OREO

         Management generally places loans on nonaccrual status when they become
90 days past due, unless the loan is well secured and in the process of
collection. Loans are charged off when, in the opinion of management, collection
appears unlikely. There were nonaccrual loans of $441,037 at September 30, 2006,
$59,735 at September 30, 2005, and $54,020 at December 31, 2005.

         At September 30, 2006, there were loans totaling $441,037 that were
considered impaired or troubled debt restructurings compared to $59,735 at
September 30, 2005 and $309,256 at December 31, 2005. These loans were
delinquent and placed on nonaccrual, but management currently believes that the
loans will be collected in full. The loans were placed on nonaccrual to defer
future income recognition until the delinquent payments have been received.
There were no loan concentrations in excess of 10% of total loans not otherwise
disclosed as a category of loans as of September 30, 2006 or December 31, 2005.
Management is not aware of any potential problem loans, which were accruing and
current at September 30, 2006, where serious doubt exists as to the ability of
the borrower to comply with the present repayment terms. There was no other real
estate owned at September 30, 2006 and December 31, 2005.

                                       17
<PAGE>

Other Income

         Other income for the three months ended September 30, 2006 was $186,776
compared to $167,007 for the same period during 2005. Other income for the nine
months ended September 30, 2006 was $459,539 compared to $520,126 for the same
period during 2005. The Bank offers loans on single family homes through third
party lenders. The Bank receives fees for the packaging of the loans provided to
the third party lender. The loans are funded by and become assets of the third
party lender. The fees on such loans for the three months ended September 30,
2006 were $60,000 compared to $12,074 for the third quarter of 2005. Fees for
the nine months ended September 30, 2006 were $60,000 compared to $36,508 for
the nine months ended September 30, 2005. The Bank also originates loans through
various government guarantee programs. The guaranteed portion of these loans can
be sold in the secondary market. Gains on loans sold in the secondary market and
the servicing of these loans for the three months ended September 30, 2006 were
$19,601 compared to $31,214 during the same period in 2005. Gains on loans sold
in the secondary market and the servicing of these loans for the nine months
ended September 30, 2006 were $78,672 compared to $157,901 during the same
period in 2005. The gains on the guaranteed portion of loans sold for the nine
months ended September 30, 2006 were $12,733 compared to a gain of $67,226 in
2005.

Other Expense

         Salaries and employee benefits for the three months ended September 30,
2006 were $906,868 compared to $698,042 for the three months ended September 30,
2005. Salaries and employee benefits for the nine months ended September 30,
2006 were $2,550,119 compared to $1,911,333 for the nine months ended September
30, 2005. The increase in salaries and employee benefits during 2006 was a
result of an increase in the number of employees in preparation for opening a
new Lodi, California office in mid-August, 2006. Beginning in 2006, the Company
is required to record expense related to employee and director stock-based
compensation. The portion of the expense related to employee stock options for
the three months ended September 30, 2006 was $30,666 and the comparable expense
for the nine months ended September 30, 2006 was $91,144. There was no expense
recorded on the income statement for stock-based compensation for 2005. There
were 47 employees at September 30, 2006 compared to 37 at September 30, 2005.

         Occupancy and equipment expense for the three months ended September
30, 2006 was $194,585 compared to $136,281 for the same period of 2005.
Occupancy and equipment expense was $612,230 for the nine months ended September
30, 2006 compared to $386,856 for the same period during 2005. The increase in
expense is related to rent in the amount of $21,882 per month for the Company's
new office in Lodi, California, a new administrative office in Tracy,
California, and an annual cpi increase in the lease expense for the other branch
offices.

         Data processing and other professional fees were $95,764 for the three
months ended September 30, 2006 compared to $136,618 for the three months ended
September 30, 2005. Data processing and other professional fees for the nine
months ended September 30, 2006 was $416,401 compared to $338,932 for the same
period during 2005. The primary increase in professional fees is for management
recruitment fees paid to locate new employees.

         Loan department expense for the three months ended September 30, 2006
was $49,214 compared to $26,731 for the same period of 2005. Loan department
expense for the nine months ended September 30, 2006 was $173,739 compared to
$69,842 for the same period of 2005. The primary increase in loan department
expense for the nine months ended September 30, 2006 was the amortization
expense for loan servicing assets. When the Company sells a government
guaranteed loan it establishes a loan servicing asset, which is the anticipated
servicing over the estimated remaining term of the loans sold. If these loans
payoff early the remaining unamortized servicing asset is written off. During
the first quarter of 2006, two large SBA loans paid-off early.

         The remainder of the other operating expenses increased due to the
growth of the Company.

         For the three months ended September 30, 2006, the Company had a tax
credit of $35,620 compared to tax expense of $17,590 in the same quarter of
2005. Income tax expense for the nine months ended September 30, 2006 was
$82,794 compared to $234,996 for the same time period in 2005. During 2006, the
Company has been able to reduce its tax liability as a result of an increase in
tax exempt bonds and four tax leases. At September 30, 2006, the average amount
invested in tax exempt bonds was $14,218,499 compared to an average amount
invested for the nine months ended September 30, 2005 of $1,927,240. The average
amount in tax leases for the nine months ended September 30, 2006 was
$2,826,865. There were no leases outstanding during the nine months ended
September 30, 2005. Tax leases allow the Company to recognize accelerated
depreciation expense for tax purposes which exceeds the rental income earned for
tax purposes.

                                       18
<PAGE>

Capital Resources

         Total shareholders' equity at September 30, 2006 was $16,648,064
compared to $15,574,101 at December 31, 2005. The increase was primarily from
the net income for the nine months ended September 30, 2006 of $733,139. Due to
an improvement in market value on investments the accumulated other
comprehensive income, net of tax increased by $191,450.

         The Company and the Bank are subject to regulations issued by the Board
of Governors of the Federal Reserve System and the FDIC, which require
maintenance of a certain level of capital. Under the regulations, capital
requirements are based upon the composition of an institution's asset base and
the risk factors assigned to those assets. The guidelines characterize an
institution's capital as being "Tier 1" capital (defined to be principally
shareholders' equity less intangible assets) and "Tier 2" capital (defined to be
principally the allowance for loan losses, limited to one and one-fourth percent
of gross risk weighted assets). The guidelines require the Company and the Bank
to maintain a risk-based capital target ratio of 8%, one-half or more of which
should be in the form of Tier 1 capital.

         The following table shows the Company's and the Bank's actual capital
amounts and ratios at September 30, 2006 and December 31, 2005, as well as the
minimum capital ratios for capital adequacy under the regulatory framework
(dollar amounts are in thousands).

<TABLE>
<CAPTION>
                                                                                                            To be
                                                                                                      well-capitalized
                                                                                                        under prompt
                                                                               For capital            corrective action
                                                      Actual                adequacy purposes             provisions
                                              -----------------------    -----------------------    -----------------------
                                                Amount        Ratio        Amount        Ratio        Amount        Ratio
                                              ----------    ---------    ----------    ---------    ----------    ---------
<S>                                           <C>                <C>     <C>                 <C>    <C>                <C>
As of September 30, 2006:

Company:
   Total capital (to risk weighted assets)    $   23,528         15.6%   $   12,039          8.0%          N/A          N/A
   Tier 1 capital (to risk weighted assets)   $   22,169         14.7%   $    6,019          4.0%          N/A          N/A
   Tier 1 capital (to average assets)         $   22,169         11.1%   $    8,025          4.0%          N/A          N/A
Bank:
   Total capital (to risk weighted assets)    $   20,867         13.9%   $   12,039          8.0%   $   15,048         10.0%
   Tier 1 capital (to risk weighted assets)   $   19,446         12.9%   $    6,019          4.0%   $    9,029          6.0%
   Tier 1 capital (to average assets)         $   19,446          9.8%   $    7,972          4.0%   $    9,965          5.0%

As of December 31, 2005:

Company:
   Total capital (to risk weighted assets)    $   17,404         15.1%   $    9,224          8.0%          N/A          N/A
   Tier 1capital (to risk weighted assets)    $   16,281         14.1%   $    4,612          4.0%          N/A          N/A
   Tier 1 capital (to average assets)         $   16,281          9.8%   $    6,683          4.0%          N/A          N/A
Bank:
   Total capital (to risk weighted assets)    $   16,304         14.1%   $    9,224          8.0%   $   11,530         10.0%
   Tier 1capital (to risk weighted assets)    $   15,181         13.2%   $    4,612          4.0%   $    6,918          6.0%
   Tier 1 capital (to average assets)         $   15,181          9.1%   $    6,644          4.0%   $    8,304          5.0%
</TABLE>

         The Bank meets the "well capitalized" capital ratio measures at both
September 30, 2006 and December 31, 2005.

                                       19
<PAGE>

Liquidity

         Liquidity management refers to the Company's ability to provide funds
on an ongoing basis to meet fluctuations in deposit levels as well as the credit
needs and requirements of its clients. Both assets and liabilities contribute to
the Company's liquidity position. Federal funds lines, short-term investments
and unencumbered securities, and loan repayments contribute to liquidity, along
with deposit increases, while loan funding and deposit withdrawals decrease
liquidity. The Company assesses the likelihood of projected funding requirements
by reviewing historical funding patterns, current and forecasted economic
conditions and individual client funding needs. Commitments to fund loans and
outstanding letters of credit at September 30, 2006 and December 31, 2005 were
approximately $37,589,000 and $1,098,000 and $33,301,000 and $1,596,000,
respectively. Such loan commitments relate primarily to revolving lines of
credit and other commercial loans and to real estate construction loans. Since
some of the commitments are expected to expire without being drawn upon, the
total commitment amounts do not necessarily represent future cash requirements.

         The Company's sources of liquidity consist of cash and due from
correspondent banks, overnight funds sold to correspondent banks, unpledged
marketable investments, short-term interest bearing deposits and loans held for
sale. At September 30, 2006, consolidated unencumbered liquid assets totaled
$33,360,847 or 15.3% of total assets compared to $39,361,207 or 23.2% of total
assets on December 31, 2005. In addition to liquid assets, the Company maintains
short-term lines of credit in the amount of $41,000,000 with correspondent
banks. At September 30, 2006, the Company had $41,000,000 available under these
credit lines. Additionally, the Bank is a member of the FHLB. At September 30,
2006, the Bank could have arranged for up to $16,830,000 in secured borrowings
from the FHLB. These borrowings are secured by pledged mortgage loans. At
September 30, 2006, the Company had advances, borrowings and commitments
(including letters of credit) outstanding of $9,000,000, leaving $7,830,000
available under these FHLB secured borrowing arrangements. The Company serves
primarily a business and professional customer base and, as such, its deposit
base is susceptible to economic fluctuations. Accordingly, management strives to
maintain a balanced position of liquid assets and borrowing capacity to volatile
and cyclical deposits.

         Liquidity is also affected by portfolio maturities and the effect of
interest rate fluctuations on the marketability of both assets and liabilities.
The Company can sell any of its unpledged securities held in the
available-for-sale category to meet liquidity needs. These securities are also
available to pledge as collateral for borrowings if the need should arise. The
Bank has established a master repurchase agreement with two brokerage firms to
enable such transactions. The Bank can also pledge securities to borrow from the
FRB and the FHLB.

Inflation

         The impact of inflation on a financial institution differs
significantly from that exerted on manufacturing or other commercial concerns,
primarily because its assets and liabilities are largely monetary. In general,
inflation primarily affects the Company and the Bank indirectly through its
effect on market rates of interest, and thus the ability of the Bank to attract
loan customers. Inflation affects the growth of total assets by increasing the
level of loan demand, and potentially adversely affects the Company's and the
Bank's capital adequacy because loan growth in inflationary periods can increase
at rates higher than the rate that capital grows through retention of earnings,
which the Company may generate in the future. In addition to its effects on
interest rates, inflation directly affects the Company by increasing operating
expenses. The effects of inflation were not material to the Company's results of
operations during the periods ending September 30, 2006 and 2005.

Off-Balance Sheet Items

         The Company is a party to financial instruments with off-balance-sheet
risk in the normal course of business in order to meet the financing needs of
its customers and to reduce its exposure to fluctuations in interest rates.
These financial instruments consist of commitments to extend credit and letters
of credit. These instruments involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount recognized on the balance sheet.

         The Company's exposure to credit loss in the event of nonperformance by
the other party for commitments to extend credit and letters of credit is
represented by the contractual amount of those instruments. The Company applies
the same credit policies to commitments and letters of credit as it does for
loans included on the consolidated balance sheet. As of September 30, 2006 and
December 31, 2005, commitments to extend credit and standby letters of credit
were the only financial instruments with off-balance sheet risk. The Company has
not entered into any contracts for financial derivative

                                       20
<PAGE>

instruments such as futures, swaps, options or similar instruments. Loan
commitments and standby letters of credit were $338,687,000 and $34,897,000 at
September 30, 2006 and December 31, 2005, respectively. As a percentage of net
loans and leases these off-balance sheet items represent 35.3% and 42.3%,
respectively.

         The Company has certain ongoing commitments under operating leases.
These commitments do not significantly impact operating results.

         Certain financial institutions have elected to use special purpose
vehicles ("SPV") to dispose of problem assets. The SPV is typically a subsidiary
company with an asset and liability structure and legal status that makes its
obligations secure even if the parent corporation goes bankrupt. Under certain
circumstances, these financial institutions may exclude the problem assets from
their reported impaired and non-performing assets. The Company does not use
these vehicles or any other structures to dispose of problem assets.

Effects of Terrorism

         The terrorist actions on September 11, 2001 and thereafter and the
conflict with Iraq have had significant adverse effects upon the United States
economy. Whether the terrorist activities in the future and the actions of the
United States and its allies in combating terrorism on a worldwide basis will
adversely impact the Company and the extent of such impact is uncertain. Such
economic deterioration could adversely affect the Company's future results of
operations by, among other matters, reducing the demand for loans and other
products and services offered by the Bank, increasing nonperforming loans and
the amounts reserved for loan losses, and causing a decline in the Company's
stock price.

Website Access

         Information on the Company and Bank may be obtained from the Company's
website www.service1stbank.com. Copies of the annual report on Form 10-KSB,
quarterly reports on Form 10-QSB, current reports on Form 8-K, and all
amendments thereto, as well as Section 16 reports and amendments thereto, are
available free of charge on the website as soon as they are published by the SEC
through a link to the Edgar reporting system maintained by the SEC. To obtain
copies of or to view the reports on Form 10-KSB, 10-QSB, and 8-K, click on the
"Go to Service 1st Bancorp" button, then click on the "Click here to view
Service 1st Bancorp SEC Filings" link. To obtain copies of or to view Section 16
reports filed by the Company's insiders, click on the "Click here to view
Section 16 Reports" link on the above webpage.

Other Matters

         The Company filed its report on Form 8-K dated July 7, 2006 to announce
the organization of Charter Service Group, Inc. as a new wholly-owned subsidiary
of the Company. Charter will provide consulting services primarily related to
the formation of new (de novo) banks. It is anticipated that such consulting
services will include consultation with prospective organizers of de novo banks
related to regulatory approval, capitalization and infrastructure requirements,
among other matters.

Item 3. Controls and Procedures

         (a)      Disclosure Controls and Procedures

         An evaluation of the Company's disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) was carried out under the
supervision and with the participation of the Company's Chief Executive Officer,
Chief Financial Officer and other members of the Company's senior management as
of the end of the Company's fiscal quarter ended September 30, 2006. The
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures as currently in effect are
effective in ensuring that the information required to be disclosed by the
Company in the reports it files or submits under the Exchange Act is (i)
accumulated and communicated to the Company's management (including the Chief
Executive Officer and Chief Financial Officer) to allow timely decisions
regarding required disclosure, and (ii) recorded, processed, summarized and
reported within the time periods specified in the Commission's rules and forms.

                                       21
<PAGE>

         (b)      Internal Control Over Financial Reporting

         An evaluation of any changes in the Company's internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)),
that occurred during the Company's fiscal quarter ended September 30, 2006, was
carried out under the supervision and with the participation of the Company's
Chief Executive Officer, Chief Financial Officer and other members of the
Company's senior management. The Company's Chief Executive Officer and Chief
Financial Officer concluded that no change identified in connection with such
evaluation has materially affected, or is reasonably likely to materially
affect, the Company's internal control over financial reporting.

PART II. - OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

         None

Item 3.  Defaults Upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security Holders

         None

Item 5. Other Information

         None

Item 6.  Exhibits

                  (2.1)    Plan of Reorganization and Merger Agreement (included
                           in Annex A), incorporated by reference from the
                           Registrant's Form S-4EF, Registration No. 333-104244,
                           filed with the Securities and Exchange Commission on
                           April 1, 2003.

                  (3.1)    Articles of Incorporation, as amended, incorporated
                           by reference from the Registrant's Form 10-QSB for
                           the quarterly period ended September 30, 2005, filed
                           with the Securities and Exchange Commission on
                           November 10, 2005.

                  (3.2)    Bylaws, as amended, incorporated by reference from
                           the Registrant's Form 10-KSB for the year ended
                           December 31, 2004, filed with the Securities and
                           Exchange Commission on March 31, 2005.

                  (4.1)    Specimen form of certificate for Service 1st Bancorp
                           common stock, incorporated by reference from
                           Registrant's Form 10-QSB for the quarterly period
                           ended September 30, 2003, filed with the Securities
                           and Exchange Commission on November 14, 2003.

                  (10.1)   Lease agreement dated May 3, 2002, related to 2800
                           West March Lane, Suite 120, Stockton, CA 95219,
                           incorporated by reference from the Registrant's Form
                           S-4EF, Registration No. 333-104244, filed with the
                           Securities and Exchange Commission on April 1, 2003.

                  (10.2)   Lease agreement dated April 13, 1999 and amendment
                           thereto dated June 17, 1999, related to 60 West 10th
                           Street, Tracy, CA 95376, incorporated by reference
                           from the Registrant's Form S-4EF, Registration No.
                           333-104244, filed with the Securities and Exchange
                           Commission on April 1, 2003.

                                       22
<PAGE>

                  (10.3)*  1999 Service 1st Bancorp Stock Option Plan, Amendment
                           No. 1 thereto, and related forms of Incentive and
                           Nonstatutory Stock Option Agreements entered into
                           with executive officers and directors, incorporated
                           by reference from the Registrant's Form S-8,
                           Registration No. 333-107346, filed with the
                           Securities and Exchange Commission on July 25, 2003.

                  (10.4)   Agreement dated July 27, 1999 with BancData
                           Solutions, Inc. for service bureau and data
                           processing services incorporated by reference from
                           the Registrant's Form S-4EF, Registration No.
                           333-104244, filed with the Securities and Exchange
                           Commission on April 1, 2003.

                  (10.5)   Agreement dated February 1, 2000 with Financial
                           Marketing Services, incorporated by reference from
                           the Registrant's Form S-4EF, Registration No.
                           333-104244, filed with the Securities and Exchange
                           Commission on April 1, 2003.

                  (10.6)*  Service 1st Bank 401(k) Profit Sharing Plan and Trust
                           Summary Plan Description dated January 1, 2000,
                           incorporated by reference from the Registrant's Form
                           S-4EF, Registration No. 333-104244, filed with the
                           Securities and Exchange Commission on April 1, 2003.

                  (10.7)   Lease agreement dated March 27, 2003, related to 3533
                           Jamison Way, Castro Valley, CA 94546, incorporated by
                           reference from the Registrant's Form 10-KSB for the
                           year ended December 31, 2003, filed with the
                           Securities and Exchange Commission on March 30, 2004.

                  (10.8)*  John O. Brooks Salary Continuation Agreement dated
                           September 10, 2003, incorporated by reference from
                           the Registrant's Form 10-KSB for the year ended
                           December 31, 2003, filed with the Securities and
                           Exchange Commission on March 30, 2004.

                  (10.9)*  Bryan R. Hyzdu Salary Continuation Agreement dated
                           September 10, 2003, incorporated by reference from
                           the Registrant's Form 10-KSB for the year ended
                           December 31, 2003, filed with the Securities and
                           Exchange Commission on March 30, 2004.

                  (10.10)* Robert E. Bloch Salary Continuation Agreement dated
                           September 10, 2003, incorporated by reference from
                           the Registrant's Form 10-KSB for the year ended
                           December 31, 2003, filed with the Securities and
                           Exchange Commission on March 30, 2004.

                  (10.11)* Patrick Carman Salary Continuation Agreement dated
                           September 10, 2003, incorporated by reference from
                           the Registrant's Form 10-KSB for the year ended
                           December 31, 2003, filed with the Securities and
                           Exchange Commission on March 30, 2004.


                  (10.12)* 2004 Stock Option Plan and Forms of Incentive and
                           Nonstatutory Stock Option Agreements, incorporated by
                           reference from the Registrant's Form S-8,
                           Registration No. 333-116818, filed with the
                           Securities and Exchange Commission on June 24, 2004.

                  (10.13)* John O. Brooks Employment Agreement dated July 15,
                           2004, incorporated by reference from the Registrant's
                           Form 10-QSB, for the quarterly period ended September
                           30, 2004, filed with the Securities and Exchange
                           Commission on November 15, 2004.

                  (10.14)* Bryan R. Hyzdu Employment Agreement dated July 15,
                           2004, incorporated by reference from the Registrant's
                           Form 10-QSB, for the quarterly period ended September
                           30, 2004, filed with the Securities and Exchange
                           Commission on November 15, 2004.

                  (10.15)* Robert E. Bloch Employment Agreement dated July 15,
                           2004, incorporated by reference from the Registrant's
                           Form 10-QSB, for the quarterly period ended September
                           30, 2004, filed with the Securities and Exchange
                           Commission on November 15, 2004.

                                       23
<PAGE>

                  (10.16)* Patrick Carman Employment Agreement dated July 15,
                           2004, incorporated by reference from the Registrant's
                           Form 10-QSB, for the quarterly period ended September
                           30, 2004, filed with the Securities and Exchange
                           Commission on November 15, 2004.

                  (10.17)* Shannon Reinard Employment Agreement dated July 15,
                           2004, incorporated by reference from the Registrant's
                           Form 10-QSB, for the quarterly period ended September
                           30, 2004, filed with the Securities and Exchange
                           Commission on November 15, 2004.

                  (10.18)  Fiserv Solutions, Inc. Agreement dated October 7,
                           2004, for service bureau, data processing, and item
                           processing, incorporated by reference from the
                           Registrant's Form 10-KSB for the year ended December
                           31, 2004, filed with the Securities and Exchange
                           Commission on June 30, 2005.

                  (10.19)  Lease agreement dated May 1, 2005, related to 49 W.
                           10th Street, Tracy, CA 95378, incorporated by
                           reference from the Registrant's Form 10-QSB for the
                           quarterly period ended September 30, 2005, filed with
                           the Securities and Exchange Commission on November
                           10, 2005.

                  (10.20)  Lease agreement dated October 3, 2005, related to
                           1901 W. Kettleman Lane, Building A, Suite 1A and 1B,
                           Lodi, CA 95242, incorporated by reference from the
                           Registrant's Form 10-QSB for the quarterly period
                           ended September 30, 2005, filed with the Securities
                           and Exchange Commission on November 10, 2005.

                  (10.21)  Lease agreement dated January 13, 2006, related to
                           1930 Tienda Drive, Building B, Suite 104, Lodi, CA
                           95242, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (10.22)* Shannon Reinard Salary Continuation Agreement dated
                           August 8, 2005, incorporated by reference from
                           Registrant's Form 10-KSB for the year ended December
                           31, 2005, filed with the Securities and Exchange
                           Commission on March 30, 2006.

                  (10.23)* Bryan R. Hyzdu First Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (10.24)* Bryan R. Hyzdu Second Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (10.25)* Patrick Carman First Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (10.26)* Patrick Carman Second Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (10.27)* Robert E. Bloch First Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                                       24
<PAGE>

                  (10.28)* Robert E. Bloch Second Amendment dated August 8, 2005
                           to Salary Continuation Agreement dated September 10,
                           2003, incorporated by reference from Registrant's
                           Form 10-KSB for the year ended December 31, 2005,
                           filed with the Securities and Exchange Commission on
                           March 30, 2006.

                  (14.1)   Code of Ethics, incorporated by reference from the
                           Registrant's Form 10-KSB for the year ended December
                           31, 2003, filed with the Securities and Exchange
                           Commission on March 30, 2004.

                  (21.1)   Registrant's only subsidiaries are Service 1st Bank
                           and Charter Services Group, Inc.

                  (31.1)   Certification of Chief Executive Officer pursuant to
                           Section 302 of the Sarbanes-Oxley Act of 2002.

                  (31.2)   Certification of Chief Financial Officer pursuant to
                           Section 302 of the Sarbanes-Oxley Act of 2002.

                  (32.1)   Certification of Service 1st Bancorp by its Chief
                           Executive Officer and Chief Financial Officer
                           pursuant to Section 906 of the Sarbanes-Oxley Act of
                           2002.

                         *Denotes management compensatory plans or arrangements.

                                       25
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                             SERVICE 1ST BANCORP

Date: November 13, 2006                      By: /s/ JOHN O. BROOKS
                                                 -------------------------------
                                                 John O. Brooks
                                                 Chief Executive Officer
                                                 (Principal Executive Officer)

Date: November 13, 2006                      By: /s/ ROBERT E. BLOCH
                                                 -------------------------------
                                                 Robert E. Bloch
                                                 Executive Vice President and
                                                 Chief financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)

                                       26
<PAGE>

                                  EXHIBIT INDEX
                                  -------------


   Exhibit                                                           Sequential
    Number                            Description                    Page Number
---------------    ----------------------------------------------    -----------
     31.1          Certification of Chief Executive Officer
                   pursuant to Section 302 of the Sarbanes-Oxley
                   Act of 2002.                                           28
     31.2          Certification of Chief Financial Officer
                   pursuant to Section 302 of the Sarbanes-Oxley
                   Act of 2002.                                           29
     32.1          Certification of Service 1st Bancorp by its
                   Chief Executive Officer and Chief Financial
                   Officer pursuant to Section 906 of the
                   Sarbanes-Oxley Act of 2002.                            30

                                       27