--------------------------------------------------------------------------------
                       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 March 31, 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 mark 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: 2,386,239 shares of registrant's
common stock were outstanding at May 12, 2006.



The Index to Exhibits is located at page 23.
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

<TABLE>
<CAPTION>
                         SERVICE 1ST BANCORP AND SUBSIDIARY
                            CONSOLIDATED BALANCE SHEETS

                                                      (Unaudited)
ASSETS                                                 03/31/06         12/31/05
                                                     -------------    -------------
<S>                                                  <C>              <C>
Cash and due from banks                              $   3,030,927    $   9,024,556
Federal funds sold                                              --               --
                                                     -------------    -------------
       Cash and cash equivalents                         3,030,927        9,024,556

Certificates of deposit with other banks                   593,720          993,720
Investment securities available-for-sale                67,955,785       67,873,931
Investment securities held-to-maturity                   1,418,721          936,040
Loans, net                                              96,422,826       82,533,132
Bank premises and equipment, net                           706,271          671,450
Cash surrender value of life insurance                   3,468,969        3,436,150
Accrued interest receivable                                943,223          958,001
Other Assets                                             3,048,752        2,902,290

                                                     -------------    -------------
       Total assets                                  $ 177,589,194    $ 169,329,270
                                                     =============    =============


LIABILITIES & SHAREHOLDERS' EQUITY

Deposits:
   Noninterest-bearing demand                        $  26,730,872    $  27,388,426
   Money market, NOW and savings                        87,059,587       85,127,700
   Time deposits under $100,000                         21,319,861       13,643,135
   Time deposits $100,000 and over                      19,469,354       24,982,406
                                                     -------------    -------------
       Total deposits                                  154,579,674      151,141,667
Other borrowings                                         5,471,134        1,030,000
Accrued interest and other liabilities                   1,775,441        1,583,502
                                                     -------------    -------------

       Total liabilities                               161,826,249      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 March 31, 2006 and December 31,
     2005                                               15,992,913       15,992,913
  Additional paid-in-capital                                49,222               --
  Retained earnings (deficit)                              501,276          299,946
Accumulated other comprehensive income, net of tax        (780,466)        (718,758)

                                                     -------------    -------------
       Total shareholders' equity                       15,762,945       15,574,101

                                                     -------------    -------------
       Total liabilities and shareholders' equity    $ 177,589,194    $ 169,329,270
                                                     =============    =============
</TABLE>

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

                                       2
<PAGE>

                           SERVICE 1ST BANCORP AND SUBSIDIARY
                            CONSOLIDATED STATEMENTS OF INCOME
                               For the three months ended
                                       (unaudited)
<TABLE>
<CAPTION>
                                                              For the three months ended
                                                             ---------------------------
                                                               03/31/06       03/31/05
                                                             ------------   ------------
<S>                                                          <C>            <C>
Interest income:
   Interest and fees on loans                                $  1,893,374   $  1,257,416
   Interest on investment securities                              733,638        528,206
   Interest on federal funds sold                                  18,502         61,627
   Other interest income                                            6,834         10,228
                                                             ------------   ------------
       Total interest income                                    2,652,348      1,857,477
Interest expense:
   Interest expense on deposits                                   944,117        588,306
   Interest on borrowings                                          32,505             --
                                                             ------------   ------------
                                                                  976,622        588,306
                                                             ------------   ------------

       Net interest income                                      1,675,726      1,269,171

Provision for loan losses                                          45,000         60,000
                                                             ------------   ------------

       Net interest income after provision for loan losses      1,630,726      1,209,171

Other income:
   Service charges, fees and other income                          71,425         69,689
   Gain on sale and servicing of loans                             26,386         91,402
   Referral fees on mortgage loans                                     --         11,639
   Earnings on cash surrender value life insurance                 37,799         25,805
                                                             ------------   ------------
                                                                  135,610        198,535
Other expenses:
   Salaries and employee benefits                                 813,555        605,453
   Occupancy expense                                              157,696         76,220
   Equipment expense                                               51,342         46,233
   Data processing and other professional services                168,552        108,807
   Office supplies and equipment                                   42,783         36,073
   Loan department expense                                        104,086         17,249
   Advertising and promotion                                       29,589         33,790
   Directors fees and expenses                                     42,441         21,303
   FDIC and state assessments                                      20,135         20,365
   Other operating expenses                                        57,047         73,651
                                                             ------------   ------------
                                                                1,487,226      1,039,144
                                                             ------------   ------------
       Net income before income taxes                             279,110        368,562

Income taxes (benefit)                                             77,780        114,126
                                                             ------------   ------------

       Net income                                            $    201,330   $    254,436
                                                             ============   ============
Net income per share - basic                                 $       0.08   $       0.11
                                                             ============   ============
Net income per share - diluted                               $       0.08   $       0.10
                                                             ============   ============
</TABLE>

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

                                       3
<PAGE>

<TABLE>
<CAPTION>
                                                         SERVICE 1ST BANCORP
                                           CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                                                             (unaudited)

                                                                                                       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                                                  49,222                                                         49,222
Comprehensive income:
  Net income                                                           $    201,330         201,330                         201,330
  Unrealized losses on
     securities net of
     taxes of $43,416                                                       (61,708)                        (61,708)        (61,708)
                                                                       ------------
  Comprehensive income                                                 $    139,622
                                                                       ============

                            ------------  ------------  ------------                   ------------    ------------    ------------
Balances March 31, 2006        2,386,239  $ 15,992,913  $     49,222                   $    501,276    $   (780,466)   $ 15,762,945
                            ============  ============  ============                   ============    ============    ============
</TABLE>

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

                                       4
<PAGE>

<TABLE>
<CAPTION>
                                       SERVICE 1ST BANCORP AND SUBSIDIARY
                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                               For the three months ended March 31, 2006 and 2005
                                                   (unaudited)
                                                                                            2006            2005
                                                                                    ------------    ------------
<S>                                                                                 <C>             <C>
Operating activities:
  Net income                                                                        $    201,330    $    254,436
Adjustments to reconcile net income to net cash from operating activities:
   Provision for loan losses                                                              45,000          60,000
   Depreciation                                                                           40,038          42,837
   Amortization and accretion on securities                                               70,640          71,899
   Earnings on cash surrender value life insurance, net                                  (32,819)        (25,805)
   Options expense                                                                        49,222              --
   Gain on sale of loans                                                                      --         (63,086)
   Decrease (Increase) in accrued interest                                                14,778        (136,985)
   Increase in other assets                                                             (146,462)       (285,223)
   Increase in accrued expenses and other liabilities                                    191,939          35,002
                                                                                    ------------    ------------

 Net cash provided by (used in) operating activities                                     433,666         (46,925)

Investing activities:
  Purchases of securities available-for-sale                                          (2,206,413)    (13,033,265)
  Purchases of securities held to maturity                                              (500,000)             --
    Proceeds from payments, maturities and calls of available-for-sale securities      1,984,618       5,201,676
    Proceeds from payments, maturities and calls of held-to-maturity securities           24,912          73,251
  Net increase in loans                                                              (13,934,694)     (2,114,637)
  Proceeds from sales of loans                                                                --         906,203
  Certificates of deposit with other banks                                               400,000      (3,452,559)
  Purchases of premises and equipment                                                    (74,859)        (39,453)
                                                                                    ------------    ------------

 Net cash used by investing activities                                               (14,306,436)    (12,458,784)

Financing activities:
  Net increase in demand, interest-bearing deposits and savings                      (12,368,802)     19,556,439
  Net increase in time deposits                                                       15,806,809      (1,034,587)
    Net proceeds from sale of stock (proceeds from sale of common stock,
        net of costs)                                                                         --         567,871
  Net change in borrowings                                                             4,441,134              --
                                                                                    ------------    ------------
 Net cash provided by financing activities
                                                                                       7,879,141      21,158,897
                                                                                    ------------    ------------

Net increase (decrease) in cash and cash equivalents                                  (5,993,629)      8,653,188
Cash and cash equivalents at beginning of period                                       9,024,556      11,042,365
                                                                                    ------------    ------------

Cash and cash equivalents at end of period                                          $  3,030,927    $ 19,695,553
                                                                                    ============    ============

Supplemental disclosures of cash flow information:
  Interest                                                                          $    911,267    $    463,566
  Income taxes                                                                      $         --    $         --
</TABLE>

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

                                       5
<PAGE>

                               SERVICE 1ST BANCORP
              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 March 31, 2006 and the
Company's income statement for the three months ended March 31, 2006 and 2005,
and the statement of cash flows for the three months ended March 31, 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 three-month period ended March 31, 2006
are as follows:

                WEIGHTED AVERAGE ASSUMPTIONS FOR OPTIONS GRANTED
                            DURING THE PERIOD ENDED:

                                                 March 31, 2006
                                           ---------------------
              Expected Life                           72 months
              Stock Volatility                           55.22%
              Risk free interest rate                     4.49%
              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.

                                       6
<PAGE>

                               SERVICE 1ST BANCORP
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

Stock-based 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 $49,222 of stock-based
compensation expense during the first quarter of 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 period ended March 31, 2005 (in thousands, except per share
amounts):

<TABLE>
<CAPTION>
                                                                       Quarter ended
                                                                       March 31, 2005
                                                                       --------------
<S>                                                                     <C>
            Net income as reported                                      $    254,436
               Deduct: Total stock-based
                 employee compensation expense determined under fair
                 value based method of all awards, net of related tax
                 effects                                                $     (2,689)
               Pro forma net income                                     $    251,747

               Earnings per share:
               Basic-as reported                                        $       0.11
               Basic-pro forma                                          $       0.10

               Diluted-as reported                                      $       0.11
               Diluted-pro forma                                        $       0.10
</TABLE>

                                       7
<PAGE>

                               SERVICE 1ST BANCORP
              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 March 31, 2006 and 2005.
Weighted average shares outstanding used in the computation of basic earnings
per share were 2,386,239 and 2,385,193 in 2006 and 2005, respectively. Weighted
average shares outstanding used in the computation of diluted earnings per share
were 2,549,433 and 2,482,716 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
March 31, 2006.

<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   $ 29,791,985   $          8    $   (555,465)   $ 29,236,528
State and public subdivisions               13,921,467          2,497        (143,621)     13,780,343
Asset backed-securities                      8,214,673             93        (203,835)      8,010,931
Mortgage backed-securities                  17,356,340         10,757        (439,114)     16,927,983
                                          ------------   ------------    ------------    ------------
                                          $ 69,284,465   $     13,355    $ (1,342,035)   $ 67,955,785
                                          ============   ============    ============    ============

                                                            Gross           Gross          Estimated
                                           Amortized      Unrealized      Unrealized         Fair
                                              Cost          Gains           Losses           Value
                                          ------------   ------------    ------------    ------------
Held-to-Maturity Securities:
Obligations of U.S. Government Agencies   $    500,000   $         --    $    (10,360)   $    489,640
State and public subdivisions                  631,240         52,133              --         683,372
Asset backed-securities                         65,969             --              --          65,969
Mortgage backed-securities                     221,513          2,434            (487)        223,460
                                          ------------   ------------    ------------    ------------
                                          $  1,418,721   $     54,567    $    (10,847)   $  1,462,441
                                          ============   ============    ============    ============
</TABLE>

         Securities carried at approximately $41,831,000 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.

<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 public 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
                                  ============   ============    ============    ============

Held-to-Maturity Securities:
  State and public 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>


NOTE 4 - LOANS

         Service 1st Bank's customers are primarily located in San Joaquin
County. At March 31, 2006, approximately 70.4% of the Bank's loans are for real
estate and construction loans and approximately 21% of the Bank's loans are for
general commercial users including professional, retail, and small businesses.
Consumer loans make up approximately 2.4% of the loan portfolio, leases make up
4.0% of the loan portfolio, with agriculture loans making up the remaining 2.2%.
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:
                                                   3/31/2006        12/31/2005
                                                 ------------      ------------
Construction and land development loans          $ 33,865,794      $ 27,787,719
Real estate loans                                  35,071,122        33,672,659
Commercial loans                                   20,464,882        18,109,304
Leases                                              3,954,516                --
Agricultural loans                                  2,110,233         1,964,690
Consumer loans                                      2,411,042         2,430,356
                                                 ------------      ------------
                                                   97,877,589        83,964,728
Deferred loan fees and costs                         (286,269)         (308,102)
Allowance for loan losses                          (1,168,494)       (1,123,494)
                                                 ------------      ------------
    Total net loans                              $ 96,422,826      $ 82,533,132
                                                 ============      ============

                                       9
<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 March 31, 2006, the Company maintained its administrative office
in Tracy, San Joaquin County and the Bank operated two full-service offices in
the cities of Stockton and Tracy in San Joaquin County. The Bank has a temporary
office in the City of Lodi, CA while the tenant improvements are completed on
the permanent office in Lodi, CA. 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.

         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
management to make difficult, subjective or complex judgments that could have a

                                       10
<PAGE>

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 4.9% from December
31, 2005 to March 31, 2006. As of March 31, 2006, total consolidated assets were
$177,589,194 compared to $169,329,270 as of December 31, 2005. The increase in
growth was primarily from an increase in loans.

         Total net loans at March 31, 2006 were $96,422,826 compared to
$82,533,132 at December 31, 2005. This represents an increase in net loans of
16.8% from December 31, 2005.

         Cash and due from banks declined 66.4% from December 31, 2005 to March
31, 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 $154,579,674 at March 31, 2006 compared to
$151,141,667 at December 31, 2005. Noninterest-bearing DDA accounts decreased
from $27,388,426 at December 31, 2005 to $26,730,872 at March 31, 2006. Money
market, NOW, and savings accounts increased to $87,059,587 at March 31, 2006
from $85,127,700 at December 31, 2005. Time deposits under $100,000 increased
from $13,643,135 at December 31, 2005 to $21,319,861 at March 31, 2006. Time
deposits of $100,000 and over decreased from $24,982,406 at December 31, 2005 to
$19,469,354 at March 31, 2006.

         Other borrowings at March 31, 2006 were $5,471,134 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 short-term overnight
advances from the Bank's correspondent banks.

Results of Operations

         Net income for the three months ended March 31, 2006 was $201,330
compared to $254,436 for the first quarter of 2005. Basic earnings per share for
the three months ended March 31, 2006 were $0.08 per share compared to $0.11 for
the three months ended March 31, 2005. Diluted earnings per share for March 31,
2006 and 2005 were $0.08 and $0.10, respectively.

         The decline in income before tax was due to a decrease in other income.
Other income for the three months ended March 31, 2006 was $135,610 compared to
$198,535 for 2005. This decline was primarily from a $63,086 gain on SBA loan
sales during the first quarter of 2005. There were no loans sold during the
first quarter of 2006.

         Another factor contributing to the decline in income before tax was the
adoption of SFAS No. 123R. The Company had stock based compensation expense of
$49,222 for the first quarter of 2006. There was no expense reflected on the
income statement for this compensation in 2005.

                                       11
<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 March 31, 2006 and 2005.

<TABLE>
<CAPTION>
                                                     March 31, 2006                                    March 31, 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          $   1,231,498    $      13,678            4.50%   $   1,257,722    $      10,228            3.30%
Investments                           69,174,559          726,794            4.26%      55,779,316          528,206            3.84%
Federal funds sold                     1,725,216           18,502            4.35%       9,740,541           61,627            2.57%
Loans (1) (2)                         87,913,182        1,893,374            8.73%      69,654,124        1,257,416            7.32%
                                   -------------    -------------                    -------------    -------------
   Total interest-earning assets     160,044,455        2,652,348            6.72%     136,431,703        1,857,477            5.52%

Allowance for possible loan losses    (1,126,299)                                         (985,000)
Cash and due from banks                3,578,994                                         8,020,616
Bank premises and equipment              632,942                                           632,738
Accrued interest receivable              798,416                                           522,421
Other assets                           6,262,603                                         4,194,635
                                   -------------                                     -------------
   Total assets                    $ 170,191,111                                     $ 148,817,113
                                   =============                                     =============

Interest-Bearing Liabilities:
Demand deposits                    $  69,229,031          481,150            2.82%   $  70,111,835          318,860            1.84%
Savings & money market accounts       17,433,300           74,800            1.74%      13,420,610           29,984            0.91%
Time Deposits                         38,718,216          388,167            4.07%      26,937,195          239,462            3.61%
Other borrowings                       2,488,843           32,505            5.30%              --               --              --
                                   -------------    -------------                    -------------    -------------
   Total interest-bearing
     liabilities                     127,869,390          976,622            3.10%     110,469,640          588,306            2.16%
                                   -------------    -------------                                     -------------

Non-interest bearing demand
   deposits                           25,854,383                                        22,820,928
Other Liabilities                      1,887,042                                           626,356
                                   -------------                                     -------------
   Total liabilities                 155,610,815                                       133,916,924
Shareholders' equity                  14,580,296                                        14,900,189
                                   -------------                                     -------------
   Total liabilities and
     shareholders' equity          $ 170,191,111                                     $ 148,817,113
                                   =============                                     =============

                                                    -------------                                     -------------
Net interest income                                 $   1,675,726                                     $   1,269,171
                                                    =============                                     =============
Net interest margin on average interest earning assets (3)                   4.25%                                             3.77%
</TABLE>

1. Average loan balances include average deferred loan fees of $286,549 and
   $282,384 for the three months ending March 31, 2006 and 2005, respectively.
2. Interest on loans includes fees of $49,883 and $44,650 for the three month
   periods ending March 31, 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.

         Net interest income for the three months ended March 31, 2006 was
$1,675,726 compared to $1,269,171 for 2005. Average interest-earning assets for
the three months ended March 31, 2006 were $160,044,455 compared to $136,431,703
during the same three months of 2005. The yield earned on average
interest-earning assets during the first quarter of 2006 was 6.72% compared to
5.52% during the first quarter of 2005. The average rate paid on interest
bearing-liabilities increased from 2.16% for the first quarter of 2005 to 3.10%
during the first quarter of 2006. The increase in rates earned on loans,
investments, and paid on deposits was a result of the Federal Reserve Bank
raising interest rates fifteen times from July 1, 2004 through March 28, 2006.

                                       12
<PAGE>

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 70.4%
of total loans outstanding at March 31, 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 March 31, 2006
was $45,000 compared to $60,000 during the same quarter of 2005. At March 31,
2006, the allowance for loan losses was $1,168,494 compared to $1,123,494 at
December 31, 2005. The ratio of allowance for loan losses to gross loans was
1.19% at March 31, 2006 compared to 1.49% 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.

                                       13
<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 three months ended March 31,

                                                              2006            2005
                                                          ------------    ------------
<S>                                                       <C>             <C>
Outstanding Loans:
  Average for the Period                                  $ 87,913,182    $ 69,654,124
  End of the Period                                       $ 97,877,589    $ 70,834,354
Allowance For Loan Losses:
Balance at Beginning of Year                              $  1,123,494    $    963,000
Actual Charge-Offs:
  Commercial                                                        --              --
  Consumer                                                          --              --
  Real Estate                                                       --              --
                                                          ------------    ------------
Total Charge-Offs                                                   --              --
                                                          ------------    ------------
Less Recoveries:
  Commercial                                                        --              --
  Consumer                                                          --              --
  Real Estate                                                       --              --
                                                          ------------    ------------
Total Recoveries                                                    --              --
                                                          ------------    ------------
Net Loans Charged-Off                                               --              --
Provision for Loan Losses                                       45,000          60,000
                                                          ------------    ------------
Balance at End of Period                                  $  1,168,494    $  1,023,000
                                                          ============    ============
Ratios:
Net Loans Charged-Off to Average Loans                               0%              0%
Allowance for Loan Losses to Total Loans                          1.19%           1.44%
Net Loans Charged-Off to Beginning
  Allowance for Loan Losses                                          0%              0%

Net Loans Charged-Off to Provision for Loan Losses                   0%              0%

Allowance for Loan Losses to Nonperforming Loans               2,031.5%        1,346.1%
</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 $49,967 at March 31, 2006 and
$76,000 at March 31, 2005 and $54,019 at December 31, 2005.

         At March 31, 2006, there were loans totaling $49,967 that were
considered impaired or troubled debt restructurings compared to $76,000 at March
31, 2005 and $309,256 at December 31, 2005. These loans were delinquent and
placed on nonaccrual, but management 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 March 31, 2006 or December 31, 2005. Management is not
aware of any potential problem loans, which were accruing and current at March
31, 2006 or December 31, 2005, 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 March 31, 2006 and December 31, 2005.

                                       14
<PAGE>

Other Income

         Other income for the three months ended March 31, 2006 was $135,610
compared to $198,535 for the same period during 2005. The Bank offers loans on
single family homes through a third party lender. 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 residential first
trust deeds for the three months ended March 31, 2006 were $0 compared to
$11,639 in 2005. The activity in the refinance market for loans declined causing
the earnings from the activity to decrease. The Bank 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 March 31, 2006 were
$26,386 compared to $91,402 during the same period in 2005. The gains on the
guaranteed portion of loans sold for the months ended March 31, 2006 was $0.00
compared to a gain of $63,086 in 2005.

Other Expense

         Salaries and employee benefits for the three months ended March 31,
2006 were $813,555 compared to $605,453 for the three months ended March 31,
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, CA
office in July, 2006 and a $29,812 change for employee stock-based compensation.
There was no expense recorded on the income statement for stock-based
compensation for 2005. There were 37 employees at March 31, 2006 compared to 33
at March 31, 2005.

         Occupancy expense for the three months ended March 31, 2006 was
$157,666 compared to $76,220 for the same period of 2005. The increase in
expense is related to the rent on the Company's new office in Lodi, California,
a new administrative office in Tracy, California, and an annual cost of living
increase for the other branch offices.

         Data processing and other professional fees increased from $108,807 for
the three months ended March 31, 2005 to $168,552 for the three months ended
March 31, 2006. The primary increases for 2006 were for Human Resource services,
data processing expense, and other professional services.

         Loan department expense for the three months ended March 31, 2006 was
$104,086 compared to $17,249 for the same period of 2005. The primary increase
was the amortization expense for loan servicing assets of $93,393 during the
first quarter of 2006 compared to $15,460 for 2005. 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.

Capital Resources

         Total shareholders' equity at March 31, 2006 was $15,762,945 compared
to $15,574,101 at December 31, 2005. The increase was primarily from the net
income for the three months ended March 31, 2006 of $254,436. Due to rising
interest rates there was an increase in the unrealized losses on securities of
$61,708.

         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.

                                       15
<PAGE>

         The following table shows the Company's and the Bank's actual capital
amounts and ratios at March 31, 2006 and December 31, 2005, as well as the
minimum capital ratios for capital adequacy under the regulatory framework.

<TABLE>
<CAPTION>
                                                                                                           To be well-
                                                              Actual           For capital adequacy     capitalized under
                                                                                     purposes           prompt corrective
                                                                                                        action provisions
                                                       --------------------    --------------------    -------------------
                                                        Amount      Ratio       Amount      Ratio       Amount     Ratio
                                                       --------    --------    --------    --------    --------   --------
<S>                                                    <C>             <C>     <C>              <C>    <C>            <C>
As of March 31, 2006:

Company:
   Total capital (to risk weighted assets)             $ 17,703        13.5%   $ 10,508         8.0%        N/A        N/A
   Tier 1 capital (to risk weighted assets)            $ 16,534        12.6%   $  5,254         4.0%        N/A        N/A
   Tier 1 capital (to average assets)                  $ 16,534         9.8%   $  6,817         4.0%        N/A        N/A
Bank:
   Total capital (to risk weighted assets)             $ 15,812        12.0%   $ 10,508         8.0%   $ 13,135       10.0%
   Tier 1 capital (to risk weighted (assets)           $ 14,669        11.2%   $  5,254         4.0%   $  7,881        6.0%
   Tier 1 capital (to average assets)                  $ 14,669         8.7%   $  6,776         4.0%   $  8,470        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
March 31, 2006 and December 31, 2005.

                                       16
<PAGE>

Liquidity

         The objective of liquidity management is to ensure continuous
availability of funds to meet the demands of depositors, investors, and
borrowers. Liquidity is primarily derived from cash, Federal Funds, and other
liquid investments. The Bank has also established borrowing lines from
correspondent banks and the Federal Home Loan Bank of San Francisco totaling
$28,000,000. Management is not aware of any future capital expenditures or other
significant demands on commitments that would severely impair liquidity.

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 March 31, 2006 and 2005.

Off-Balance Sheet Items

         As of March 31, 2006 and December 31, 2005, commitments to extend
credit and letters of credit were the only financial instruments with
off-balance sheet risk. The Company has not entered into any contracts for
financial derivative instruments such as futures, swaps, options or similar
instruments. Loan commitments and letters of credit were $42,600,546 and
$34,897,000 at March 31, 2006 and December 31, 2005, respectively. As a
percentage of gross loans these off-balance sheet items represent 41.3% and
37.8%, respectively.

         Certain financial institutions have elected to use special purpose
vehicles ("SPV") to dispose of problem assets. A 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 doesn't use those
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.

                                       17
<PAGE>

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 March 31, 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.

         (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 March 31, 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.

                                       18
<PAGE>

                  (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.

                  (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.

                                       19
<PAGE>

                  (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.

                  (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.

                                       20
<PAGE>

                  (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.

                  (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 subsidiary is Service 1st Bank.

                  (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.

                                       21
<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: May 12, 2006                        By: /s/ JOHN O. BROOKS
                                              ----------------------------------
                                              John O. Brooks
                                              Chief Executive Officer
                                              (Principal Executive Officer)

Date: May 12, 2006                        By: /s/ ROBERT E. BLOCH
                                              ----------------------------------
                                              Robert E. Bloch
                                              Executive Vice President and
                                              Chief financial Officer
                                              (Principal Financial and
                                              Accounting Officer)

                                       22
<PAGE>

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


<TABLE>
<CAPTION>
   Exhibit                                                                                                     Sequential
    Number                                             Description                                            Page Number
---------------       -------------------------------------------------------------------------------       -----------------
<S>                   <C>                                                                                          <C>
     31.1             Certification of Chief Executive Officer pursuant to Section 302 of the
                      Sarbanes-Oxley Act of 2002.                                                                  24
     31.2             Certification of Chief Financial Officer pursuant to Section 302 of the
                      Sarbanes-Oxley Act of 2002.                                                                  25
     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.                 26
</TABLE>
                                       23