================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

     For the quarterly period ended June 30, 2007

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

     For the transition period from ____________ to ____________

                        Commission file number 000-50323

                               SERVICE 1ST BANCORP
             ------------------------------------------------------
             (Exact name of registrant 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
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act during the
preceding 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 large accelerated filer, an
accelerated filer, or non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]    Accelerate filer [ ]    Non-accelerated filer [X]

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

Indicate the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: No par value common stock -
2,388,739 shares outstanding at August 13, 2007.

================================================================================

The Index to Exhibits is located at page 27.

<PAGE>

                                      INDEX
                        TO SERVICE 1ST BANCORP FORM 10-Q
                            FOR THE SIX MONTHS ENDED
                                  JUNE 30, 2007

<TABLE>
<CAPTION>
                                                                                                      PAGE
                                                                                                      ----
<S>       <C>                                                                                         <C>
Part I

Item 1    Financial Statements                                                                          3
Item 2    Management's Discussion and Analysis of Financial Condition and Results of Operations        11
Item 3    Quantitative and Qualitative Disclosures About Market Risk                                   20
Item 4    Controls and Procedures                                                                      21
Item 4T   Controls and Procedures                                                                      21

Part II

Item 1    Legal Proceedings                                                                            21
Item 1A   Risk Factors                                                                                 21
Item 2    Unregistered Sales of Equity Securities and Use of Proceeds                                  22
Item 3    Defaults Upon Senior Securities                                                              22
Item 4    Submission of Matters to a Vote of Security Holders                                          22
Item 5    Other Information                                                                            22
Item 6    Exhibits                                                                                     22

Signatures                                                                                             26

Exhibit                                                                                                27
Index

   4.2    Trust Preferred Security Indenture dated August 17, 2006 between Service 1st                 28
          Bancorp and Wells Fargo Bank, National Association
   4.3    Trust Preferred Security Amended and Restated Declaration of Trust dated                     91
          August 17, 2006 between Service 1st Bancorp and Wells Fargo Bank, National Association
   4.4    Trust Preferred Security Guarantee Agreement dated August 17, 2006 between                  149
          Service 1st Bancorp and Wells Fargo Bank, National Association
   4.5    Trust Preferred Security Junior Subordinated Debt Security dated August 17, 2006            168
          between Service 1st Bancorp and Wells Fargo Bank, National Association
   4.6    Trust Preferred Security Trust Preferred Security Certificate dated August 17, 2006         174
          between Service 1st Bancorp and Wells Fargo Bank, National Association
  31.1    Certification of Chief Executive Officer pursuant to Section 302 of the                     182
          Sarbanes-Oxley Act of 2002
  31.2    Certification of Chief Financial Officer pursuant to Section 302 of the                     183
          Sarbanes-Oxley Act of 2002
  32.1    Certification of Service 1st Bancorp by its Chief Executive Officer and Chief               184
          Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
</TABLE>


                                        2
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                             06/30/07       12/31/06
                                                          -------------   -------------
                                                           (Unaudited)
<S>                                                       <C>             <C>
ASSETS

Cash and due from banks                                   $   5,174,082   $   6,543,416
Federal funds sold                                              220,000      10,616,902
                                                          -------------   -------------
    Cash and cash equivalents                                 5,394,082      17,160,318
Certificates of deposit with other banks                      2,341,750       1,500,000
Investment securities available-for-sale                     72,311,970      81,157,727
Investment securities held-to-maturity                       11,623,076       4,985,995

Loans, net                                                  117,644,105     113,508,174

Bank premises and equipment, net                              1,306,848       1,388,980
Cash surrender value of life insurance                        3,631,474       3,566,696
Accrued interest receivable                                   1,444,430       1,461,602
Other assets                                                  4,401,521       2,490,898
                                                          -------------   -------------
    Total assets                                          $ 220,099,256   $ 227,220,390
                                                          =============   =============
LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
  Noninterest-bearing demand                              $  22,837,773   $  33,848,426
  Money market, NOW and savings                              85,012,744      94,662,249
  Time deposits under $100,000                               62,806,270      48,409,724
  Time deposits $100,000 and over                            20,967,900      23,034,692
                                                          -------------   -------------
    Total deposits                                          191,624,687     199,955,091
Other borrowings                                              9,793,026       9,155,000
Accrued interest and other liabilities                        1,744,117       1,143,465
                                                          -------------   -------------
    Total liabilities                                       203,161,830     210,253,556

Shareholders' equity:
  Common stock                                               16,023,738      16,023,738
  Additional paid-in-capital                                    313,154         207,144
  Retained earnings                                           1,443,701       1,147,067
  Accumulated other comprehensive income, net of tax           (843,167)       (411,115)
                                                          -------------   -------------
    Total shareholders' equity                               16,937,426      16,966,834

                                                          -------------   -------------
    Total liabilities and shareholders' equity            $ 220,099,256   $ 227,220,390
                                                          =============   =============
</TABLE>

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

                                        3
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                             FOR THE PERIODS ENDING
                                   (unaudited)

<TABLE>
<CAPTION>
                                                           For the three months ended    For the six months ended
                                                          ---------------------------   ---------------------------
                                                            06/30/07       06/30/06       06/30/07       06/30/06
                                                          ------------   ------------   ------------   ------------
<S>                                                       <C>            <C>            <C>            <C>
Interest income:
   Interest and fees on loans                             $  2,612,211   $  2,271,226   $  5,131,388   $  4,164,600
   Interest on investments                                   1,034,262        734,390      2,054,072      1,468,028
   Interest on fed funds sold                                    9,403          5,610         66,399         24,112
   Other interest income                                        13,839            975         31,794          7,809
                                                          ------------   ------------   ------------   ------------
     Total interest income                                   3,669,715      3,012,201      7,283,653      5,664,549
Interest expense:
   Interest expense on deposits                              1,750,008      1,107,460      3,513,321      2,051,577
  Interest on borrowings                                       183,957        170,272        315,291        202,777
                                                          ------------   ------------   ------------   ------------
  Total interest expense                                     1,933,965      1,277,732      3,828,612      2,254,354
                                                          ------------   ------------   ------------   ------------

Net interest income before provision for loan losses         1,735,750      1,734,469      3,455,041      3,410,195

Provision for loan losses                                       50,000         95,000         50,000        140,000
                                                          ------------   ------------   ------------   ------------
Net interest income after provision for loan losses          1,685,750      1,639,469      3,405,041      3,270,195

Other Income:
   Service charges, fees, and other income                      44,121         66,052        159,516        137,477
   Gain on the sale of investment securities                     1,375              -         (6,578)             -
   Gain on sale and servicing of loans                          12,970         32,685         34,814         59,071
   Referral fees on mortgage loans                             174,970              -        211,870              -
   Earnings on cash surrender value of life insurance           39,623         38,416         78,614         76,215
   Consulting fees                                              60,000              -         60,000              -
                                                          ------------   ------------   ------------   ------------
     Total other income                                        333,059        137,153        538,236        272,763

Other Expenses:
   Salaries and employee benefits                            1,070,054        829,696      2,089,275      1,643,251
   Occupancy expense                                           160,811        151,784        324,856        309,480
   Equipment expense                                            88,406         56,823        164,075        108,165
   Data processing and other professional fees                 147,009        152,085        297,220        320,637
   Office supplies and equipment                                67,039         40,243        134,771         83,026
   Loan department expense                                         409         20,439         20,654        124,525
   Advertising and promotion                                    47,694         61,985        138,712         91,574
   Directors fees and expenses                                  61,688         43,134        113,380         85,575
   FDIC and state assessments                                   18,442         13,244         28,035         33,379
   Other operating expenses                                    118,882         81,825        236,787        138,872
                                                          ------------   ------------   ------------   ------------
     Total other expenses                                    1,780,434      1,451,258      3,547,765      2,938,484
                                                          ------------   ------------   ------------   ------------

Income before income taxes                                     238,375        325,364        395,512        604,474
Income tax expense                                              54,880         86,687         98,878        164,467
                                                          ------------   ------------   ------------   ------------
   Net income                                             $    183,495   $    238,677   $    296,634   $    440,007
                                                          ============   ============   ============   ============

Net income per share - basic                              $       0.07   $       0.10   $       0.12   $       0.18
                                                          ============   ============   ============   ============
Net income per share - diluted                            $       0.07   $       0.09   $       0.12   $       0.17
                                                          ============   ============   ============   ============
</TABLE>

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

                                        4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                        Accumulated
                                        Common Stock         Additional                                   Other           Total
                                 -------------------------    Paid in      Comprehensive   Retained    Comprehensive  Shareholders'
                                    Shares       Amount       Capital          Income      Earnings       Income         Equity
                                 -----------  ------------  -----------   --------------  ----------   -------------  -------------
<S>                                <C>        <C>           <C>           <C>             <C>          <C>            <C>
Balance January 1, 2006            2,386,239  $ 15,992,913  $         -                   $  299,946   $    (718,758) $  15,574,101

Stock options exercised                2,500        30,825                                                                   30,825
Surplus from options expense                                    207,144                                                     207,144

COMPREHENSIVE INCOME:
  Net income                                                              $     847,121      847,121                        847,121

  Unrealized losses on
   securities net of taxes
   of $217,194                                                                  308,699            -         308,699        308,699

  Reclassification adjustment
    for losses included in net
    income, net of tax of $743                                                   (1,056)           -          (1,056)        (1,056)
                                                                          -------------
  Comprehensive income                                                    $   1,154,764
                                                                          =============
                                 -----------  ------------  -----------                   ----------   -------------  -------------
Balance December 31, 2006          2,388,739    16,023,738      207,144                    1,147,067        (411,115)    16,966,834

  Surplus from options expense                                  106,010                                                     106,010
COMPREHENSIVE INCOME:
  Net income                                                              $     296,634      296,634                        296,634
  Unrealized losses on
    securities net of taxes
     of $301,265                                                               (428,191)                    (428,191)      (428,191)
  Reclassification adjustment
    for losses included in net
    income, net of tax of $2,717                                                 (3,861)                      (3,861)        (3,861)
                                                                          -------------
  Comprehensive income                                                    $    (135,418)
                                                                          =============
                                 -----------  ------------  -----------                   ----------   -------------  -------------
Balance June 30, 2007              2,388,739  $ 16,023,738  $   313,154                   $1,443,701   $    (843,167) $  16,937,426
                                 ===========  ============  ===========                   ==========   =============  =============
</TABLE>

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

                                        5
<PAGE>

                      SERVICE 1ST BANCORP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                       FOR THE THREE MONTHS ENDED JUNE 30,
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                        2007           2006
                                                                                   -------------   -------------
<S>                                                                                <C>             <C>
Operating activities:
   Net income                                                                      $     296,634   $     440,007
Adjustments to reconcile net income to net cash from operating activities:
   Provision for loan losses                                                              50,000         140,000
   Depreciation                                                                          118,942          80,656
   Amortization and accretion on securities                                              (36,488)        134,573
   Earnings on cash surrender value life insurance, net                                  (64,778)        (66,252)
   Options Expense                                                                       106,010          99,298
   Gain on sale of loans                                                                  (6,737)        (12,733)
   Loans originated for sale                                                             (63,750)              -
   Proceeds from loan sales                                                               70,487         150,150
   Loss on sale of securities, net                                                         6,578               -
   Decrease (Increase) in accrued interest                                                17,172         (97,461)
   Decrease (Increase) in other assets                                                (1,620,972)       (652,265)
   Increase in accrued expenses and other liabilities                                    600,652        (238,408)
                                                                                   -------------   -------------
 Net cash provided by (used in) operating activities                                    (526,250)        (22,435)
Investing activities:
   Purchases of securities available-for-sale                                         (5,339,062)     (3,274,813)
   Purchases of securities held-to-maturity                                           (7,380,003)       (500,000)
   Proceeds from sales of available-for-sale securities                                3,228,767               -
   Proceeds from sales of held-to-maturity securities                                    209,042               -
   Proceeds from payments, maturities and calls of available-for-sale
     securities                                                                       10,158,779       3,894,905
   Proceeds from payments, maturities and calls of held-to-maturity securities           639,360          54,265
   Net decrease (increase) in loans                                                   (4,185,931)    (26,135,106)
   Certificates of deposit with other banks                                             (841,750)        700,000
   Purchases of premises and equipment                                                   (36,810)       (455,592)
                                                                                   -------------   -------------
 Net cash used by investing activities                                                (3,547,608)    (25,716,341)

Financing activities:
   Net decrease in demand, interest-bearing deposits and savings                     (14,163,446)    (23,758,910)
   Net increase in time deposits                                                       5,833,042      33,309,264
   Options exercised                                                                           -               -
   Net change in borrowings                                                              638,026      12,896,000
                                                                                   -------------   -------------
 Net cash provided by financing activities                                            (7,692,378)     22,446,354
                                                                                   -------------   -------------

Net increase in cash and cash equivalents                                            (11,766,236)     (3,292,422)
Cash and cash equivalents at beginning of period                                      17,160,318       9,024,556
                                                                                   -------------   -------------
Cash and cash equivalents at end of period                                         $   5,394,082   $   5,732,134
                                                                                   =============   =============

Supplemental disclosures of cash flow information:
   Cash paid during the period for:
   Interest                                                                        $   3,797,407   $   2,290,551
   Income taxes                                                                    $           -   $     247,000
</TABLE>

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

                                        6
<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-Q 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-K for
the year ended December 31, 2006. 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 June 30, 2007 and the Company's income
statement for the three months ended June 30, 2007 and 2006, and the statement
of cash flows for the three months ended June 30, 2007 and 2006. Operating
results for interim periods are not necessarily indicative of operating results
for an entire fiscal year.

         The balance sheet as of December 31, 2006, 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 six-month period ended June 30, 2007 and
2006 are as follows:

                WEIGHTED AVERAGE ASSUMPTIONS FOR OPTIONS GRANTED
                            DURING THE PERIOD ENDED:

                                         June 30, 2007   June 30, 2006
                                         -------------   -------------
         Expected Life                       72 months       72 months
         Stock Volatility                        75.08%          55.58%
         Risk free interest rate                  4.75%           4.77%
         Dividend yield                           0.00%           0.00%

                                        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 June 30, 2007 and 2006.
Weighted average shares outstanding used in the computation of basic earnings
per share were 2,388,739 and 2,388,739 in 2007 and 2006, respectively. Weighted
average shares outstanding used in the computation of diluted earnings per share
were 2,530,173 and 2,548,089 in 2007 and 2006, respectively.

NOTE 3 - SECURITIES

         Securities are classified in two 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; and equity securities classified as 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 June
30, 2007.

The amortized cost or fair values of investment securities available-for-sale at
June 30, 2007 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     $  32,455,341   $       1,955   $    (574,883)  $  31,882,413
State and political subdivisions               18,989,867             139        (310,020)     18,679,986
Asset backed-securities                         7,923,433           4,555        (184,880)      7,743,108
Mortgage backed-securities                     13,879,050           7,418        (380,005)     13,506,463
Short-term mutual funds                           500,000               -               -         500,000
                                            -------------   -------------   -------------   -------------
                                            $  73,747,691   $      14,067   $  (1,449,788)  $  72,311,970
                                            =============   =============   =============   =============
</TABLE>

The amortized cost or fair values of investment securities held-to-maturity at
June 30, 2007 were:

<TABLE>
<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     $   3,983,667   $       3,650   $    (259,318)  $   3,727,999
State and political subdivisions                4,564,801          13,123        (375,657)      4,202,267
Asset backed-securities                         2,898,037          13,805         (12,462)      2,899,380
Mortgage backed-securities                        176,571           1,223            (948)        176,846
                                            -------------   -------------   -------------   -------------
                                            $  11,623,076   $      31,801   $    (648,385)  $  11,006,492
                                            =============   =============   =============   =============
</TABLE>

         Securities carried at approximately $57,366,000 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, 2006.

<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                  $  39,415,380   $      63,385   $    (294,940)  $  39,183,825
  State and public subdivisions                19,522,737          38,074         (74,787)     19,486,024
  Asset backed-securities                       7,280,691           3,946        (133,943)      7,150,694
  Mortgage backed-securities                   15,138,808          12,460        (314,084)     14,837,184
  Short-term mutual funds                         500,000               -               -         500,000
                                            -------------   -------------   -------------   -------------
                                            $  81,857,616   $     117,865   $    (817,754)  $  81,157,727
                                            =============   =============   =============   =============
Held-to-Maturity Securities:
  U.S. Government Agencies                  $   2,468,485   $           -   $     (17,659)  $   2,450,826
  State and public subdivisions                 2,313,410         119,689         (12,909)      2,420,190
  Asset backed-securities                          14,526               -               -          14,526
  Mortgage backed-securities                      189,574           2,567             (57)        192,084
                                            -------------   -------------   -------------   -------------
                                            $   4,985,995   $     122,256   $     (30,625)  $   5,077,626
                                            =============   =============   =============   =============
</TABLE>

         Securities carried at approximately $63,146,000 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 June 30, 2007, approximately 65.4% of the Bank's loans are for real
estate and construction loans and approximately 19.1% of the Bank's loans are
for general commercial users including professional, retail, and small
businesses. Consumer loans make up approximately 2.2% of the loan portfolio,
leases make up 7.4% of the loan portfolio, with agricultural loans making up the
remaining 5.9%. 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:

                                                 6/30/2007        12/31/2006
                                               -------------    -------------
Construction and land development loans        $  32,467,271    $  34,248,157
Real estate loans                                 45,583,221       43,396,795
Commercial loans                                  22,742,792       23,421,351
Leases                                             8,782,878        8,591,815
Agricultural loans                                 7,025,925        4,288,022
Consumer loans                                     2,673,588        1,225,571
                                               -------------    -------------
                                                 119,275,675      115,171,711
Deferred loan fees and costs                        (152,520)        (234,487)
Allowance for loan losses                         (1,479,050)      (1,429,050)
                                               -------------    -------------
     Total net loans                           $ 117,644,105    $ 113,508,174
                                               =============    =============

                                       10
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

         Certain matters discussed or incorporated by reference in this
Quarterly Report on Form 10-Q 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, and subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. 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-K, 10-Q 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 June 30, 2007, 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 assists 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-K for the year ended December
31, 2006.

                                       11
<PAGE>

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
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 declined 3.1% from December 31,
2006 to June 30, 2007. As of June 30, 2007, total consolidated assets were
$220,099,256 compared to $227,220,390 as of December 31, 2006, and $191,696,466
at June 30, 2006. The decline in total assets from December 31, 2006 was
primarily due to a decline in noninterest-bearing DDA, which required a
reduction in Federal Funds sold from $10,616,902 at December 31, 2006 to
$220,000 at June 30, 2007.

         Total net loans at June 30, 2007 were $117,644,106 compared to
$113,508,174 at December 31, 2006 and $108,390,821 at June 30, 2006. This
represents an increase in net loans of 3.6% from December 31, 2006.

         Cash and due from banks declined from $6,543,416 at December 31, 2006
to $5,174,082 at June 30, 2007. The reduction in cash was used to fund loan
originations.

         Total deposits were $191,624,687 at June 30, 2007 compared to
$199,955,091 at December 31, 2006 and $160,692,021 at June 30, 2006.
Noninterest-bearing DDA accounts decreased from $33,848,426 at December 31, 2006
to $22,837,773 at June 30, 2007. Money market, NOW, and savings accounts
decreased to $85,012,744 at June 30, 2007 from $94,662,249 at December 31, 2006.
Time deposits under $100,000 increased from $48,409,724 at December 31, 2006 to
$62,806,270 at June 30, 2007. The decline in noninterest-bearing DDA's was
primarily related to the loss of a large title company's deposit relationship.
The decline in money market, NOW, and savings accounts was primarily related to
a large client moving funds from their money market account to time deposits.
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
$42,184,035 at December 31, 2006 to $55,665,981 at June 30, 2007.

          Other borrowings at June 30, 2007 and December 31, 2006 were
$9,793,026. The borrowings consist of $4,000,000 from the Federal Home Loan Bank
of San Francisco, $5,155,000 of Trust Preferred Securities, and $638,026 in
overnight Federal Funds purchased.

RESULTS OF OPERATIONS

         Net income for the three months ended June 30, 2007 was $183,495
compared to $238,677 for 2006. Net income for the six months ended June 30, 2007
was $296,634 compared to $440,007 for June 30, 2006.

                                       12
<PAGE>

         Basic earnings per share for the three months ended June 30, 2007 was
$0.07 per share compared to $0.10 for the three months ended June 30, 2006.
Diluted earnings per share for the three months ended June 30, 2007 and 2006
were $0.07 and $0.09, respectively. Basic earnings per share for the six months
ended June 30, 2007 were $0.12 per share compared to $0.18 for 2006. Diluted
earnings per share for the six months ended June 30, 2007 were $0.12 compared to
$0.17 for 2006.

         The decline in net income for the three months and six months ended
June 30, 2007 was primarily from increased staffing and a decline in the net
interest margin.

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 June 30, 2007 and 2006:

<TABLE>
<CAPTION>
                                                         June 30, 2007                                 June 30, 2006
                                          ------------------------------------------    ------------------------------------------
                                                                            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                 $   1,067,091    $     13,839         5.20%   $     420,093    $      4,999         4.77%
Investments                                  84,791,452       1,034,262         4.89%      69,498,877         730,366         4.22%
Federal funds sold                              722,318           9,403         5.22%         405,131           5,610         5.55%
Loans (1) (2)                               116,915,548       2,612,211         8.96%     104,195,123       2,271,226         8.74%
                                          -------------    ------------                 -------------    ------------
   Total interest-earning assets            203,496,409       3,669,715         7.23%     174,519,224       3,012,201         6.92%

Allowance for possible loan losses           (1,438,941)                                   (1,218,519)
Cash and due from banks                       3,319,526                                     3,446,733
Bank premises and equipment                   1,367,060                                       874,776
Accrued interest receivable                   1,255,897                                       923,815
Other assets                                  6,855,623                                     5,694,271
                                          -------------                                 -------------
   Total assets                           $ 214,855,574                                 $ 184,240,300
                                          =============                                 =============

Interest-bearing liabilities:
Demand deposits                           $  57,930,325         622,763         4.31%   $  67,299,123         532,034         3.17%
Savings and money market accounts            25,396,563         181,553         2.87%      11,766,345          53,516         1.82%
Time deposits                                77,017,947         945,692         4.93%      47,985,957         521,910         4.36%
Other borrowings                             11,530,178         183,957         6.40%      12,763,939         170,272         5.35%
                                          -------------    ------------                 -------------    ------------
   Total interest-bearing liabilities       171,875,013       1,933,965         4.51%     139,815,364       1,277,732         3.67%

Non-interest bearing demand deposits         23,688,288                                    27,222,608
Other liabilities                             2,071,877                                       377,055
                                          -------------                                 -------------
   Total liabilities                        197,635,178                                   167,415,027
Shareholders' equity                         17,220,396                                    16,825,273
                                          -------------                                 -------------
   Total liabilities and shareholders'
     equity                               $ 214,855,574                                 $ 184,240,300
                                          =============                                 =============
                                                           ------------                                  ------------
Net interest income                                        $  1,735,750                                  $  1,734,469
                                                           ============                                  ============
Net interest margin on average interest
 earning assets (3)                                                             3.42%                                         3.99%
</TABLE>

1.  Average loan balances include average deferred loan fees of $250,542 and
    $257,718 for the three months ended June 30, 2007 and 2006, respectively.
2.  Interest on loans includes fees of $59,461 and $60,549 for the three month
    periods ended June 30, 2007 and 2006, 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.

                                       13
<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 six months ended June 30, 2007 and 2006.

<TABLE>
<CAPTION>
                                                         June 30, 2007                                 June 30, 2006
                                          ------------------------------------------    ------------------------------------------
                                                                            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                 $   1,213,934    $     31,794         5.28%   $     823,554    $     18,677         4.57%
Investments                                  85,858,789       2,054,072         4.82%      69,337,614       1,457,160         4.24%
Federal funds sold                            2,376,065          66,399         5.64%       1,061,527          24,112         4.58%
Loans (1) (2)                               115,324,163       5,131,388         8.97%      96,099,130       4,164,600         8.74%
                                          -------------    ------------                 -------------    ------------
   Total interest-earning assets            204,772,951       7,283,653         7.17%     167,321,825       5,664,549         6.83%

Allowance for loan losses                    (1,434,023)                                   (1,172,664)
Cash and due from banks                       3,640,892                                     3,512,498
Bank premises and equipment                   1,388,698                                       754,527
Accrued interest receivable                   1,238,039                                       861,462
Other assets                                  6,749,907                                     5,976,867
                                          -------------                                 -------------
   Total assets                           $ 216,356,464                                 $ 177,254,515
                                          =============                                 =============

Interest-bearing liabilities:
Demand deposits                           $  57,620,788       1,217,904         4.26%   $  68,258,746       1,013,184         2.99%
Savings and money market accounts            27,154,165         402,194         2.99%      14,584,168         128,316         1.77%
Time deposits                                77,617,673       1,893,223         4.92%      43,377,688         910,077         4.23%
Other borrowings                             10,390,026         315,291         6.12%       7,654,775         202,777         5.34%
                                          -------------    ------------                 -------------    ------------
   Total interest-bearing liabilities       172,782,652       3,828,612         4.47%     133,875,377       2,254,354         3.40%

Non-interest bearing demand
   deposits                                  24,471,932                                    26,542,275
Other liabilities                             1,889,253                                     1,127,877
                                          -------------                                 -------------
   Total liabilities                        199,143,837                                   161,545,529
Shareholders' equity                         17,212,627                                    15,708,986
                                          -------------                                 -------------
   Total liabilities and shareholders'
      equity                              $ 216,356,464                                 $ 177,254,515
                                          =============                                 =============

                                                           ------------                                  ------------
Net interest income                                        $  3,455,041                                  $  3,410,195
                                                           ============                                  ============
Net interest margin on average interest
 earning assets (3)                                                             3.40%                                         4.11%
</TABLE>

1.  Average loan balances include average deferred loan fees of $195,791 and
    $291,373 for the six months ending June 30, 2007 and 2006, respectively.
2.  Interest on loans includes fees of $122,309 and $110,432 for the six months
    ending June 30, 2007 and 2006, 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>

         Net interest income for the three months ended June 30, 2007 was
$1,735,750 compared to $1,734,469 for 2006. Net interest income for the six
months ended June 30, 2007 was $3,455,041 compared to $3,410,195 for 2006.
Average interest-earning assets for the three months ended June 30, 2007 were
$203,496,409 compared to $174,519,224 during the same three months of 2006. The
yield earned on average interest-earning assets during the second quarter of
2007 was 7.23% compared to 6.92% during the same quarter of 2006. The average
rate paid on interest bearing-liabilities increased from 3.67% for the second
quarter of 2006 to 4.51% during the second quarter of 2007. Average
interest-earning assets for the six months ended June 30, 2007 was $204,772,951
compared to $167,321,825 during the same six months of 2006. The yield earned on
average interest-earning assets during the six months ended June 30, 2007 was
7.17% compared to 6.83% during the same period of 2006. The average rate paid on
interest bearing liabilities increased to 4.47% for the six months ended June
30, 2007 compared to 3.40% during the same period for 2006. 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 two times during the
fiscal 2006 year. Also, the competition for deposits has caused higher interest
expense to attract and maintain deposits. The Bank utilized time deposits at a
higher rate to replace a portion of the decline of noninterest-bearing DDA and
money market accounts.

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 June 30, 2007. 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 June 30, 2007
was $50,000 compared to $95,000 during the same quarter of 2006. The provision
for loan losses for the six months ended June 30, 2007 was $50,000 compared to
$140,000 during the same period of 2006. At June 30, 2007, the allowance for
loan losses was $1,479,050 compared to $1,429,050 at December 31, 2006 and
$1,269,050 at June 30, 2006. The ratio of allowance for loan losses to gross
loans was 1.24% at June 30, 2007 compared to 1.24% at December 31, 2006 and
1.15% at June 30, 2006. 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 necessary to
support the risks inherent in the portfolio.

         The table on the next page 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.

                                       15
<PAGE>

<TABLE>
<CAPTION>
                                                                For the three months ended
                                                                         June 30,
                                                             --------------------------------
                                                                  2007              2006
                                                             --------------    --------------
<S>                                                          <C>               <C>
OUTSTANDING LOANS:
  Average for the Period                                     $  115,324,163    $   96,099,130
  End of the Period                                             119,275,675       109,951,059
ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Year                                      1,429,050         1,123,494
Actual Charge-Offs:
  Commercial                                                              -                 -
  Consumer                                                                -                 -
  Real Estate                                                             -                 -
                                                             --------------    --------------
Total Charge-Offs                                                         -                 -
                                                             --------------    --------------
Less Recoveries:
  Commercial                                                              -                 -
  Consumer                                                                -            (5,556)
  Real Estate                                                             -                 -
                                                             --------------    --------------
Total Recoveries                                                          -            (5,556)
                                                             --------------    --------------
Net Loans Charged-Off (Recoveries)                                        -            (5,556)
Provision for Loan Losses                                            50,000           140,000
                                                             --------------    --------------
Balance at End of Period                                     $    1,479,050    $    1,269,050
                                                             ==============    ==============
RATIOS:
Net Loans Charged-Off (Recoveries) to Average Loans                    0.00%             (.01)%
Allowance for Loan Losses to Total Loans                               1.24%             1.15%
Net Loans Charged-Off (Recoveries) to Beginning
  Allowance for Loan Losses                                            0.00%             (.49)%
Net Loans Charged-Off (Recoveries) to Provision for Loan
 Losses                                                                0.00%            (3.97)%
Allowance for Loan Losses to Nonperforming Loans                     417.17%         2,957.81%
</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 $354,542 at June 30, 2007,
$42,905 at June 30, 2006, and $435,147 at December 31, 2006.

         At June 30, 2007, there were loans totaling $354,542 that were
considered impaired or troubled debt restructurings compared to $42,905 at June
30, 2006 and $435,147 at December 31, 2006. These loans were delinquent at June
30, 2007 and placed on nonaccrual, but management currently believes that there
will be no material losses on these loans. 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 June 30, 2007 or December 31,
2006. Management is not aware of any potential problem loans, which were
accruing and current at June 30, 2007 or December 31, 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 June 30, 2007 and December 31,
2006.

OTHER INCOME

         Other income for the three months ended June 30, 2007 was $333,059
compared to $137,153 for the same period during 2006. Other income for the six
months ended June 30, 2007 was $538,236 compared to $272,763 for the same period
during 2006. The Bank offers fixed rate commercial real estate loans 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 such loans for the three months ended June
30, 2007 were $174,970 and for the six months ended June 30, 2007 were $211,870.
There was no income from this activity for 2006. 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 June 30, 2007
were $12,970 compared to $32,685 during the same period in 2006. Gains on loans
sold in the secondary market and the servicing of these loans for the six months
ended June 30, 2007 were $34,814 compared to $59,071 during the same period in
2006.

                                       16
<PAGE>

OTHER EXPENSE

         Salaries and employee benefits for the three months ended June 30, 2007
were $1,070,054 compared to $829,696 for the three months ended June 30, 2006.
Salaries and employee benefits for the six months ended June 30, 2007 were
$2,089,275 compared to $1,643,251 for the six months ended June 30, 2006. The
increase in salaries and employee benefits during 2007 was a result of an
increase in the number of employees from 44 at June 30, 2006 to 52 at June 30,
2007.

         Occupancy and equipment expense for the three months ended June 30,
2007 was $249,217 compared to $208,607 for the same period of 2006. Occupancy
and equipment expense was $488,931 for the six months ended June 30, 2007
compared to $417,645 for the same period during 2006. The increase in expense is
related to rent for the Company's new office in Lodi, California, and annual CPI
increases in the lease expense for the branch offices.

         Data processing and other professional fees expense was $147,009 for
the three months ended June 30, 2007 compared to $152,085 for the three months
ended June 30, 2006. Data processing and other professional fees for the six
months ended June 30, 2007 was $297,220 compared to $320,637 for the same period
during 2006. The primary increase in professional fees is for management
recruitment fees paid to locate new employees.

         Loan department expense for the three months ended June 30, 2007 was
$409 compared to $20,439 for the same period of 2006. Loan department expense
for the six months ended June 30, 2007 was $20,654 compared to $124,525 for the
same period of 2006. The decrease in loan department expense for the six months
ended June 30, 2007 was primarily a result of a decrease in 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. During the second quarter of 2007,
the Bank determined that the reserve for undisbursed loans could be reduced by
$27,000.

         The increase in other operating expenses for the six months ended June
30, 2007 was primarily from an increase in fees to brokers for certificates of
deposit. The fee paid to brokers for the six months ended June 30, 2007 was
$70,006 compared to $19,943 for 2006. Losses from forgeries increased from $799
for the six months ended June 30, 2006 to $14,890 for 2007. The remainder of the
other operating expenses increased due to the growth of the Company.

CAPITAL RESOURCES

         Total shareholders' equity at June 30, 2007 was $16,937,426 compared to
$16,966,834 at December 31, 2006. The primary changes in shareholders' equity
were net income for the six months ended June 30, 2007 of $296,634 and a
decrease in accumulated other comprehensive income, net of tax of $432,052.

         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.

                                       17
<PAGE>

         The following table shows the Company's and the Bank's actual capital
amounts and ratios at June 30, 2007 and December 31, 2006, 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
                                                                             For capital adequacy     under prompt corrective
                                                         Actual                    purposes              action provisions
                                                -----------------------    -----------------------    -----------------------
                                                  Amount        Ratio        Amount        Ratio        Amount        Ratio
                                                ----------   ----------    ----------   ----------    ----------   ----------
<S>                                             <C>                <C>     <C>                 <C>    <C>                <C>
As of June 30, 2007:

Company:
   Total capital (to risk weighted assets)      $   24,411         15.2%   $   12,749          8.0%          N/A          N/A
   Tier 1 capital (to risk weighted assets)     $   17,777         11.1%   $    6,374          4.0%          N/A          N/A
   Tier 1 capital (to average assets)           $   17,777          4.2%   $   17,061          4.0%          N/A          N/A
Bank:
   Total capital (to risk weighted assets)      $   21,982         13.8%   $   12,749          8.0%   $   15,936         10.0%
   Tier 1 capital (to risk weighted assets)     $   20,468         12.8%   $    6,374          4.0%   $    9,562          6.0%
   Tier 1 capital (to average assets)           $   20,468          9.7%   $    8,482          4.0%   $   10,603          5.0%

As of December 31, 2006:

Company:
   Total capital (to risk weighted assets)      $   23,956         15.3%   $   12,510          8.0%          N/A          N/A
   Tier 1capital (to risk weighted assets)      $   22,527         14.4%   $    6,255          4.0%          N/A          N/A
   Tier 1 capital (to average assets)           $   22,527         10.4%   $    8,673          4.0%          N/A          N/A
Bank:
   Total capital (to risk weighted assets)      $   21,519         13.8%   $   12,510          8.0%   $   15,637         10.0%
   Tier 1capital (to risk weighted assets)      $   20,028         12.8%   $    6,255          4.0%   $    9,382          6.0%
   Tier 1 capital (to average assets)           $   20,028          9.3%   $    8,593          4.0%   $   10,741          5.0%
</TABLE>

         The Bank met the "well capitalized" capital ratio measures at both June
30, 2007 and December 31, 2006.

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 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 June 30, 2007 and December 31, 2006 were approximately
$34,902,000 and $40,607,000, 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 and loans held for sale and/or pledged for secured
borrowings. At June 30, 2007, consolidated liquid assets totaled $28,787,000 or
13.1% of total assets compared to $47,002,000 or 20.7% of total assets on
December 31, 2006. In addition to liquid assets, the Company maintains
short-term lines of credit in the amount of $35,300,000 with correspondent
banks. At June 30, 2007, the Company had $34,662,000 available under these
credit lines. Additionally, Service 1st Bank is a member of the FHLB. At June
30, 2007, Service 1st Bank could have arranged for up to $17,964,500 in secured
borrowings from the FHLB. These borrowings are secured by pledged mortgage
loans. At June 30, 2007, the Company had advances, borrowings and commitments
(including letters of credit) outstanding of $4,000,000, leaving $13,964,500
available under these FHLB secured borrowing arrangements. Service 1st Bank also
has informal agreements with various other banks to sell participations in
loans, if necessary. 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.

                                       18
<PAGE>

         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.
Service 1st Bank has established a master repurchase agreement with a
correspondent bank to enable such transactions. Service 1st Bank can also pledge
securities to borrow from the FRB and the FHLB. The principal cash requirements
of the Company are for expenses incurred in the support of administration and
operations.

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 June 30, 2007 and 2006.

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 June 30, 2007 and
December 31, 2006, 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 instruments such as
futures, swaps, options or similar instruments. Loan commitments and standby
letters of credit were $34,902,000 and $40,607,000 at June 30, 2007 and December
31, 2006, respectively. As a percentage of gross loans and leases these
off-balance sheet items represent 29.3% and 35.3%, respectively.

The Company has certain ongoing commitments under operating leases. The minimum
commitment under these operating leases for 2007 is $508,500.

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.

                                       19
<PAGE>

WEBSITE ACCESS

         Information regarding the Company, the Bank, and Charter may be
obtained from the Company's website at www.service1stbank.com. Copies of the
Company's annual report on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, and Section 16 reports by Company insiders, including
exhibits and amendments thereto, are available free of charge on the Company's
website as soon as they are published by the Securities and Exchange Commission
through a link to the Edgar reporting system maintained by the Securities and
Exchange Commission. To access Company filings, select "Go to Service 1st
Bancorp" at the bottom of the Company website page, then select "Click here to
view Service 1st Bancorp SEC Filings", followed by selecting "Continue to view
SEC Filings" to view or download copies of reports including Form 10-K, 10-Q or
8-K, or select "Click here to view Section 16 Reports," followed by selecting
"Continue to view Section 16 Reports," to view or download reports on Forms 3, 4
or 5 of insider transactions in Company securities.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The types of market risk exposures generally faced in the banking
industry include interest rate risk, liquidity risk, equity price risk, foreign
currency risk, and commodity price risk. Due to the nature of our operations,
foreign currency and commodity price risk are not significant to us. See
"Management's Discussion and Analysis of Financial Condition and Operations -
Liquidity" for a discussion of our liquidity risk. Our interest rate risk and
equity market price risk are described below.

INTEREST RATE RISK

         The Company manages its interest rate risk within an overall asset and
liability management framework that includes attention to credit risk, liquidity
risk, and capital structure. A principal objective of asset/liability management
is to manage the sensitivity of net interest income to changing interest rates.
Asset and liability management activity is governed by a policy reviewed and
approved annually by the Board of Directors. The Board of Directors has
delegated the administration of this policy to the Funds Management Committee, a
committee of the Board of Directors, which is comprised of senior executive
management, and four independent directors. Two common measures used to monitor
interest rate risk are economic value interest rate sensitivity and forecasted
net interest income rate sensitivity.

     Economic Value Interest Rate Sensitivity

         Interest rate sensitivity is computed by estimating percentage changes
in the economic value of our equity over a range of potential yield curve
shocks. Economic value sensitivity is defined as the economic value of our
assets less the economic value of our liabilities plus or minus the economic
value of off-balance sheet items. The economic value of each asset, liability
and off-balance sheet item is its discounted present value of expected cash
flows. Discount rates are based on implied forward market rates of interest,
adjusted for assumed shock scenario interest rate changes. The following table
shows our projected percentage change in economic value sensitivity for parallel
yield curve shocks as of the dates indicated relative to the value if wholesale
market rates follow implied forward rates.

                                                  Projected change in economic
                                                             value
                                                  ----------------------------
                                                    June 30,      December 31,
Change in interest rates                              2007            2006
-----------------------------------------------   ------------    ------------
100 basis point rise                                     -18.4%          -15.6%
100 basis point decline                                   9.98%            5.2%

         The economic value of portfolio equity sensitivity from December 31,
2005 to December 31, 2006 has shifted due to changes in wholesale rates, a
change in the composition of customer loans, leases, investments, and deposits,
and shortened wholesale borrowing maturities.

     Forecasted Net Interest Income Interest Rate Sensitivity

         The impact of interest rate changes on the next 12 months' net interest
income is measured using income simulation. The various products in our balance
sheet are modeled to simulate their income (and cash flow) behavior in relation
to interest rate movements. Income for the next 12 months is calculated using
the implied forward curve and for immediate and sustained yield curve shocks.

                                       20
<PAGE>

         The income simulation model includes various assumptions about the
repricing behavior for each product and new business volumes and pricing
behaviors. Many of our assets are floating rate loans, which would subsequently
reprice in response to changes in market interest rates with the repricing being
the same extent as the change in the underlying contracted index. Our Liquid
Gold account deposit products are assumed to reprice gradually in response to
wholesale rate changes. The following table shows our projected percentage
change in 12 month net interest income as a consequence of parallel yield curve
shocks from the implied forward curve:

                                                     Projected change in net
                                                         interest income
                                                  ----------------------------
                                                    June 30,      December 31,
Change in interest rates                              2007            2006
-----------------------------------------------   ------------    ------------
100 basis point rise                                     0.74%           4.32%
100 basis point decline                                  0.47%           1.12%

         Net interest income sensitivity from December 31, 2005 to December 31,
2006 evolved from a slightly asset-sensitive position to a relatively neutral
position.

EQUITY MARKET PRICE RISK

         We are not exposed to equity market risk through our investments in
stocks. The only stocks owned are 9,346 shares of FHLB of San Francisco and 400
shares of Pacific Coast Bankers' Bank. These stocks are not actively traded on
any exchange, but their market value exceeds their cost.

ITEM 4.  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 June 30, 2007. 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 June 30, 2007, 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.

ITEM 4T. CONTROLS AND PROCEDURES

         Not Applicable

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         None

ITEM 1A. RISK FACTORS

         None

                                       21
<PAGE>

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

         The annual shareholder's meeting was held on May 31, 2007. The
         incumbent directors were elected as Directors for the year 2007 and
         until their successors are elected and qualified as follows:

                                                    For        Against
                                               ------------   ---------
         Dean Andal                               1,506,148      42,728
         John O. Brooks                           1,510,095      38,791
         Eugene C. Gini                           1,509,702      39,184
         Bryan R. Hyzdu                           1,510,095      38,791
         Robert D. Lawrence, M.D.                 1,510,095      38,791
         Frances C. Mizuno                        1,510,095      38,791
         Richard R. Paulsen                       1,508,095      40,791
         Toni Marie Raymus                        1,510,095      38,791
         Michael K. Repetto                       1,510,095      38,791
         Anthony F. Souza                         1,510,095      38,791
         Albert Van Veldhuizen                    1,510,095      38,791
         Donald L. Walters                        1,508,095      40,611

         Votes cast to ratify the selection of Vavrinek, Trine, Day & Co., LLP
         as independent public accountants for the 2007 fiscal year as follows:

                    For             Against         Abstain
               -------------     ------------     ------------
                   1,541,409              393            7,084


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 quarter
                     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 8-K, filed with the Securities and
                     Exchange Commission on July 23, 2007.

         (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.

         (4.2)       Trust Preferred Security Indenture dated August 17, 2006
                     between Service 1st Bancorp and Wells Fargo Bank, National
                     Association.

                                       22
<PAGE>


         (4.3)       Trust Preferred Security Amended and Restated Declaration
                     of Trust dated August 17, 2006 between Service 1st Capital
                     Trust I and Wells Fargo Bank, National Association.

         (4.4)       Trust Preferred Security Guarantee Agreement dated August
                     17, 2006 between Service 1st Bancorp and Wells Fargo Bank,
                     National Association.

         (4.5)       Trust Preferred Security Junior Subordinated Debt Security
                     dated August 17, 2006 between Service 1st Bancorp and Wells
                     Fargo Bank, National Association.

         (4.6)       Trust Preferred Security Trust Preferred Security
                     Certificate dated August 17, 2006 between Service 1st
                     Capital Trust I and Wells Fargo Bank, National Association.

         (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 with Financial Marketing Services dated February
                     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.

         (10.6)*     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)*     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.

         (10.8)*     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.

         (10.9)*     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.

         (10.10)*    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.

                                       23
<PAGE>

         (10.11)*    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.

         (10.12)*    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.

         (10.13)*    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.

         (10.14)*    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.

         (10.15)*    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.

         (10.16)*    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.

         (10.17)     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.

         (10.18)     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 quarter ended September
                     30, 2005, filed with the Securities and Exchange Commission
                     on November 10, 2005.

         (10.19)     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 quarter ended September 30, 2005, filed with
                     the Securities and Exchange Commission on November 10,
                     2005.

         (10.20)*    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.

         (10.21)*    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.

         (10.22)*    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.

         (10.23)*    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.

                                       24
<PAGE>

         (10.24)*    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.

         (10.25)*    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.

         (10.26)*    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.

         (10.27)*    Director Emeritus Program approved by Board of Directors
                     effective June 30, 2006, incorporated by reference from
                     Registrant's Form 8-K, filed with the Securities and
                     Exchange Commission on July 7, 2006.

         (10.28)     Lease option exercise letter dated September 12, 2006,
                     related to 60 West 10th Street, Tracy, CA 95376,
                     incorporated by reference from Registrant's Form 10-K,
                     filed with the Securities and Exchange Commission on April
                     2, 2007.

         (14.1)      Code of Ethics, incorporated by reference from the
                     Registrant's Form 10-K 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: August 13, 2007                        By:  /s/ JOHN O. BROOKS
                                                  ------------------------------
                                                  John O. Brooks
                                                  Chief Executive Officer
                                                  (Principal Executive Officer)

Date: August 13, 2007                        By:  /s/ ROBERT E. BLOCH
                                                  ------------------------------
                                                  Robert E. Bloch
                                                  Executive Vice President and
                                                  Chief financial Officer
                                                  (Principal Financial and
                                                  Accounting Officer)

                                       26
<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
 Exhibit                                                                            Sequential
 Number                                 Description                                 Page Number
---------    ------------------------------------------------------------------    -------------
   <S>       <C>                                                                        <C>

    4.2      Trust Preferred Security Indenture dated August 17, 2006 between            28
             Service 1st Bancorp and Wells Fargo Bank, National Association


    4.3      Trust Preferred Security Amended and Restated Declaration of                91
             Trust dated August 17, 2006 between Service 1st Bancorp and Wells
             Fargo Bank, National Association

    4.4      Trust Preferred Security Guarantee Agreement dated August 17,              149
             2006 between Service 1st Bancorp and Wells Fargo Bank, National
             Association

    4.5      Trust Preferred Security Junior Subordinated Debt Security dated           168
             August 17, 2006 between Service 1st Bancorp and Wells Fargo Bank,
             National Association

    4.6      Trust Preferred Security Trust Preferred Security Certificate              174
             dated August 17, 2006 between Service 1st Bancorp and Wells Fargo
             Bank, National Association

   31.1      Certification of Chief Executive Officer pursuant to Section 302           182
             of the Sarbanes-Oxley Act of 2002.

   31.2      Certification of Chief Financial Officer pursuant to Section 302           183
             of the Sarbanes-Oxley Act of 2002.

   32.1      Certification of Service 1st Bancorp by its Chief Executive                184
             Officer and Chief Financial Officer pursuant to Section 906 of
             the Sarbanes-Oxley Act of 2002.
</TABLE>

                                       27