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 March 31, 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 May 11, 2007.

The Index to Exhibits is located at page 26.


<PAGE>
<TABLE>
<CAPTION>
                                                   INDEX
                                      TO SERVICE 1ST BANCORP FORM 10-Q
                                         FOR THE THREE MONTHS ENDED
                                               MARCH 31, 2007


<S>            <C>                                                                                     <C>
PART I                                                                                                 PAGE

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                                19
Item 4         Controls and Procedures                                                                   20
Item 4T        Controls and Procedures                                                                   20

PART II

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

SIGNATURES                                                                                               25

EXHIBIT INDEX                                                                                            26

31.1           Certifications of Chief Executive Officer pursuant to Section 302 of the Sarbanes-        27
               Oxley Act of 2002
31.2           Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-    28
               Oxley Act of 2002
32.1           Certifications of Chief Executive Officer and Chief Financial Officer pursuant to         29
               Section 906 of the Sarbanes-Oxley Act of 2002
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                       SERVICE 1ST BANCORP AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS

                                                       (Unaudited)
ASSETS                                                  03/31/07       12/31/06
                                                      -------------  -------------
<S>                                                   <C>            <C>
Cash and due from banks                               $  3,186,921   $  6,543,416
Federal funds sold                                         165,000     10,616,902
                                                      -------------  -------------
      CASH AND CASH EQUIVALENTS                          3,351,921     17,160,318

Certificates of deposit with other banks                 1,308,407      1,500,000
Investment securities available-for-sale                77,653,016     81,157,727
Investment securities held-to-maturity                   7,358,956      4,985,995
Loans, net                                             112,991,084    113,508,174
Bank premises and equipment, net                         1,404,121      1,388,980
Cash surrender value of life insurance                   3,598,775      3,566,696
Accrued interest receivable                              1,447,406      1,461,602
Other assets                                             2,789,395      2,490,898

                                                      -------------  -------------
      TOTAL ASSETS                                    $211,903,081   $227,220,390
                                                      =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:
  Noninterest-bearing demand                          $ 22,753,141   $ 33,848,426
  Money market, NOW and savings                         83,206,061     94,662,249
  Time deposits under $100,000                          54,906,436     48,409,724
  Time deposits $100,000 and over                       23,036,167     23,034,692
                                                      -------------  -------------
      TOTAL DEPOSITS                                   183,901,805    199,955,091
Other borrowings                                         9,155,000      9,155,000
Accrued interest and other liabilities                   1,639,937      1,143,465
                                                      -------------  -------------

      TOTAL LIABILITIES                                194,696,742    210,253,556

Shareholders' equity:
  Common stock                                          16,023,738     16,023,738
  Additional paid-in-capital                               257,220        207,144
  Retained earnings                                      1,260,206      1,147,067
  Accumulated other comprehensive income, net of tax      (334,825)      (411,115)
                                                      -------------  -------------
      TOTAL SHAREHOLDERS' EQUITY                        17,206,339     16,966,834

                                                      -------------  -------------
      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY      $211,903,081   $227,220,390
                                                      =============  =============
</TABLE>

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


                                        3
<PAGE>
<TABLE>
<CAPTION>
                              SERVICE 1ST BANCORP AND SUBSIDIARIES
                               CONSOLIDATED STATEMENTS OF INCOME
                                     FOR THE PERIODS ENDING
                                          (UNAUDITED)

                                                             For the three months ended
                                                      -----------------------------------------
                                                                 03/31/07              03/31/06
                                                      --------------------  -------------------
<S>                                                   <C>                   <C>
Interest income:
  Interest and fees on loans                          $         2,519,177   $         1,893,374
  Interest on investments                                       1,019,810               733,638
  Interest on fed funds sold                                       56,996                18,502
  Other interest income                                            17,955                 6,834
                                                      --------------------  -------------------
    Total interest income                                       3,613,938             2,652,348

Interest expense:
  Interest expense on deposits                                  1,763,313               944,117
  Interest on borrowings                                          131,334                32,505
                                                      --------------------  -------------------
    Total interest expense                                      1,894,647               976,622
                                                      --------------------  -------------------

Net interest income before provision for loan losses            1,719,291             1,675,726

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

Net interest income after provision for loan losses             1,719,291             1,630,726

Other Income:
  Service charges, fees, and other income                         115,395                71,425
  Gain on the sale of investment securities                        (7,953)                    -
  Gain on sale and servicing of loans                              21,844                26,386
  Referral fees on loans                                           36,900                     -
  Earnings on cash surrender value of life insurance               38,991                37,799
                                                      --------------------  -------------------
    Total other income                                            205,177               135,610

Other Expenses:
  Salaries and employee benefits                                1,019,221               813,555
  Occupancy expense                                               164,045               157,696
  Equipment expense                                                75,669                51,342
  Data processing and other professional fees                     150,210               168,552
  Office supplies and equipment                                    67,732                42,783
  Loan department expense                                          20,245               104,086
  Advertising and promotion                                        91,018                29,589
  Directors fee and expenses                                       51,693                42,441
  FDIC and state assessments                                        9,593                20,135
  Other operating expenses                                        117,905                57,047
                                                      --------------------  -------------------
    Total other expenses                                        1,767,331             1,487,226
                                                      --------------------  -------------------

Income before income taxes                                        157,137               279,110
Income tax expense                                                 43,998                77,780
                                                      --------------------  -------------------

  Net income                                          $           113,139   $           201,330
                                                      ====================  ===================

Net income per share - basic                          $              0.05   $              0.08
                                                      ====================  ===================

Net income per share - diluted                        $              0.04   $              0.08
                                                      ====================  ===================
</TABLE>

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

                                        4
<PAGE>
<TABLE>
<CAPTION>
                                              SERVICE 1ST BANCORP AND SUBSIDIARIES
                                         CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                                                           (UNAUDITED)


                                                                                                 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                                                50,076                                                        50,076
Comprehensive
  income:
  Net income                                                       $      113,139      113,139                          113,139
  Unrealized losses
    on securities
    net of taxes of $53,587                                                76,290                       76,290           76,290
                                                                   ---------------
  Comprehensive income                                             $      189,429
                                                                   ===============

                              -----------------------------------                   --------------------------------------------
Balance March 31, 2007        2,388,739  $16,023,738  $   257,220                   $1,260,206  $     (334,825)  $   17,206,339
                              ===================================                   ============================================
</TABLE>

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


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                     SERVICE 1ST BANCORP AND SUBSIDIARIES
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     FOR THE THREE MONTHS ENDED MARCH 31,
                                                 (UNAUDITED)


                                                                                         2007           2006
                                                                                 -------------  -------------
<S>                                                                              <C>            <C>
Operating activities:
  Net income                                                                     $    113,139   $    201,330
Adjustments to reconcile net income to net cash from operating activities:
  Provision for loan losses                                                                 -         45,000
  Depreciation                                                                         63,744         40,038
  Loss on sales of securities, net                                                      7,953              -
  Gain on sale of loans                                                                (6,737)             -
  Loans originated for sale                                                           (63,750)             -
  Proceeds from loan sales                                                             70,487              -
  Amortization and accretion on securities                                              1,691         70,640
  Earnings on cash surrender value life insurance, net                                (32,079)       (32,819)
  Stock-based compensation expense                                                     50,076         49,222
  Decrease in accrued interest                                                         14,196         14,778
  Increase in other assets                                                           (298,497)      (146,462)
  Increase in accrued expenses and other liabilities                                  496,472        191,939
                                                                                 -------------  -------------
Net cash provided by (used in) operating activities                                   416,695        433,666

Investing activities:
  Purchases of securities available-for-sale                                       (3,689,997)    (2,206,413)
  Purchases of securities held to maturity                                         (2,048,633)      (500,000)
  Proceeds from sales of available-for-sale securities                              1,274,260              -
  Proceeds from sales of held-to-maturity securities                                  209,042              -
  Proceeds from payments, maturities and calls of available-for-sale securities     5,423,755      1,984,618
  Proceeds from payments, maturities and calls of held-to-maturity securities          23,232         24,912
  Net decrease (increase) in loans                                                    523,827    (13,934,694)
  Proceeds from sales of loans                                                              -              -
  Purchase of certificates of deposit with other banks                                191,593        400,000
  Purchases of premises and equipment                                                 (78,885)       (74,859)
                                                                                 -------------  -------------

Net cash used by investing activities                                               1,828,194    (14,306,436)

Financing activities:
  Net decrease in demand, interest-bearing deposits and savings                   (16,054,761)   (12,368,802)
  Net increase in time deposits                                                         1,475     15,806,809
  Options exercised                                                                         -              -
  Net change in borrowings                                                                  -      4,441,134
                                                                                 -------------  -------------

Net cash provided by financing activities                                         (16,053,286)     7,879,141
                                                                                 -------------  -------------

Net increase in cash and cash equivalents                                         (13,808,397)    (5,993,629)
Cash and cash equivalents at beginning of period                                   17,160,318      9,024,556
                                                                                 -------------  -------------

Cash and cash equivalents at end of period                                       $  3,351,921   $  3,030,927
                                                                                 =============  =============

Supplemental disclosures of cash flow information:

  Cash paid during the period for:
  Interest                                                                       $  1,899,011   $  1,277,719
  Income taxes                                                                   $          -   $    120,000
</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 March 31, 2007 and the Company's income
statement for the three months ended March 31, 2007 and 2006, and the statement
of cash flows for the three months ended March 31, 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. No options were granted for
the three months ended March 31, 2007.

     The assumptions used for the three-month period ended March 31, 2006 are as
follows:

                WEIGHTED AVERAGE ASSUMPTIONS FOR OPTIONS GRANTED
                             DURING THE PERIOD ENDED:

<TABLE>
<CAPTION>
                                        March 31, 2006
                                        ---------------
<S>                                     <C>
               Expected Life                 72 months
               Stock Volatility                  55.58%
               Risk free interest rate            4.77%
               Dividend yield                     0.00%
</TABLE>


                                        7
<PAGE>
                      SERVICE 1ST BANCORP AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE  2  -  EARNINGS  PER  SHARE  (EPS)

     Basic EPS excludes dilution and is computed by dividing income available to
common shareholders' by the weighted-average number of common shares outstanding
for the period.  Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that then shared
in earnings of the entity as of March 31, 2007 and 2006.  Weighted average
shares outstanding used in the computation of basic earnings per share were
2,388,739 and 2,386,239 in 2007 and 2006, respectively.  Weighted average shares
outstanding used in the computation of diluted earnings per share were 2,548,089
and 2,549,433 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
March 31, 2007.

The amortized cost or fair values of investment securities available-for-sale at
March 31, 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  $36,220,118  $    52,454  $  (253,588)  $36,018,984
State and political subdivisions          18,712,589       40,575      (56,101)   18,697,063
Asset backed-securities                    8,490,880        8,206     (108,571)    8,390,515
Mortgage backed-securities                14,299,443       15,782     (268,771)   14,046,454
Short-term mutual funds                      500,000            -            -       500,000
                                         ---------------------------------------------------
                                         $78,223,030  $   117,017  $  (687,031)  $77,653,016
                                         ===================================================
</TABLE>

The amortized cost or fair values of investment securities held-to-maturity at
March 31, 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  $3,083,538  $         -  $  (119,794)  $2,963,744
State and political subdivisions          3,589,576      123,143      (21,540)   3,691,179
Asset backed-securities                     501,537            -            -      501,537
Mortgage backed-securities                  184,305          532           (6)     184,831
                                         -------------------------------------------------
                                         $7,358,956  $   123,675  $  (141,340)  $7,341,291
                                         =================================================
</TABLE>

Securities  carried at approximately $75,970,000 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 March 31, 2007, approximately 65.8% of the Bank's loans are for real estate
and construction loans and approximately 21.7% of the Bank's loans are for
general commercial users including professional, retail, and small businesses.
Consumer loans make up approximately 1.3% of the loan portfolio, leases make up
7.4% of the loan portfolio, with agricultural loans making up the remaining
3.8%. 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.

<TABLE>
<CAPTION>
Major classifications of loans were:
                                           3/31/2007     12/31/2006
                                         -------------  -------------
<S>                                      <C>            <C>
Construction and land development loans  $ 33,023,028   $ 34,248,157
Real estate loans                          42,374,272     43,396,795
Commercial loans                           24,915,784     23,421,351
Leases                                      8,436,148      8,591,815
Agricultural loans                          4,299,869      4,288,022
Consumer loans                              1,540,503      1,225,571
                                         -------------  -------------
                                          114,589,604    115,171,711
Deferred loan fees and costs                 (169,470)      (234,487)
Allowance for loan losses                  (1,429,050)    (1,429,050)
                                         -------------  -------------
Total net loans                          $112,991,084   $113,508,174
                                         =============  =============
</TABLE>


                                       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.  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 March 31, 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.

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


                                       11
<PAGE>
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 6.7% from December 31,
2006 to March 31, 2007.  As of March 31, 2007, total consolidated assets were
$211,903,081 compared to $227,220,390 as of December 31, 2006, and $177,589,194
at March 31, 2006.  The decline in total assets from December 31, 2006 was
primarily from a decline in noninterest-bearing DDA, which required a reduction
in Federal Funds sold from $10,616,902 at December 31, 2006 to $165,000 at March
31, 2007.

     Total net loans at March 31, 2007 were $112,991,094 compared to
$113,508,174 at December 31, 2006 and $96,422,826 at March 31, 2006.  This
represents a decrease in net loans of .5% from December 31, 2006.

     Cash and due from banks declined from $6,543,416 at December 31, 2006 to
$3,186,921 at March 31, 2007. The reduction in cash was used to fund a portion
of the decline in noninterest-bearing DDA.

     Total deposits were $183,901,805 at March 31, 2007 compared to $199,955,091
at December 31, 2006 and $154,579,674 at March 31, 2006.  Noninterest-bearing
DDA accounts decreased from $33,848,426 at December 31, 2006 to $22,753,141 at
March 31, 2007.  Money market, NOW, and savings accounts decreased to
$83,206,061 at March 31, 2007 from $94,662,249 at December 31, 2006.  Time
deposits under $100,000 increased from $48,409,724 at December 31, 2006 to
$54,906,436 at March 31, 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 $47,806,925 at March 31, 2007.

      Other borrowings at March 31, 2007 and December 31, 2006 were $9,155,000.
The borrowings consist of $4,000,000 from the Federal Home Loan Bank of San
Francisco and $5,155,000 of Trust Preferred Securities.

RESULTS OF OPERATIONS

     Net income for the three months ended March 31, 2007 was $113,139 compared
to $201,330 for 2006. Income tax expense for the three months ended March 31,
2007 was $43,998 compared to $77,780 for the same time period in 2006.

     Basic earnings per share for the three months ended March 31, 2007 was
$0.05 per share compared to $.08 for the three months ended March 31, 2006.
Diluted earnings per share for the three months ended March 31, 2007 and 2006
were $0.04 and $0.08, respectively.

     The decline in net income for the three months ended March 31, 2007 was
primarily due to the staffing for the new Lodi branch that opened in mid-August
2006, and for Charter Services Group, Inc., increased advertising expense, and
an increase in other expenses related to the growth of the Company.


                                       12
<PAGE>
NET  INTEREST  INCOME  AND  NET  INTEREST  MARGIN

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

     The  following table sets forth average balance sheet information, interest
income and expense, average yields and rates, and net interest income and margin
for  the  three  months  ended  March  31,  2007  and  2006:

<TABLE>
<CAPTION>
                                                      March 31, 2007                      March 31, 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               $  1,362,409   $   17,955       5.34%  $  1,231,498   $   13,678       4.50%
Investments                               86,937,985    1,019,810       4.76%    69,174,559      726,794       4.26%
Federal funds sold                         4,048,187       56,996       5.71%     1,725,216       18,502       4.35%
Loans (1) (2)                            113,715,097    2,519,177       8.98%    87,913,182    1,893,374       8.73%
                                        -------------------------              -------------------------
  Total interest-earning assets          206,063,678    3,613,938       7.11%   160,044,455    2,652,348       6.72%

Allowance for possible loan losses        (1,429,050)                            (1,126,299)
Cash and due from banks                    3,965,829                              3,578,994
Bank premises and equipment                1,410,576                                632,942
Accrued interest receivable                1,219,983                                798,416
Other assets                               6,643,016                              6,262,603
                                        -------------                          -------------
  Total assets                          $217,874,032                           $170,191,111
                                        =============                          =============

Interest-Bearing Liabilities:
Demand deposits                         $ 57,307,812      595,141       4.21%  $ 69,229,031      481,150       2.82%
Savings and money market accounts         28,931,296      220,641       3.09%    17,433,300       74,800       1.74%
Time Deposits                             78,224,063      947,531       4.91%    38,718,216      388,167       4.07%
Other borrowings                           9,237,206      131,334       5.77%     2,488,843       32,505       5.30%
                                        -------------------------              -------------------------
  Total interest-bearing liabilities     173,700,377    1,894,647       4.42%   127,869,390      976,622       3.10%

Non-interest bearing demand deposits      25,264,283                             25,854,383
Other Liabilities                          1,704,600                              1,887,042
                                        -------------                          -------------
  Total liabilities                      200,669,260                            155,610,815
Shareholders' equity                      17,204,772                             14,580,296
                                        -------------                          -------------
  Total liabilities and shareholders'
    equity                              $217,874,032                           $170,191,111
                                        =============                          =============
                                                       -----------                            -----------
Net interest income                                    $1,719,291                             $1,675,726
                                                       ===========                            ===========
Net interest margin on average
  interest earning assets (3)                                           3.38%                                  4.25%
</TABLE>

1. Average loan balances include average deferred loan fees of $211,479 and
   $286,549 for  the  three  months  ended  March  31,  2007  and  2006,
   respectively.
2. Interest on loans includes fees of $62,848 and $49,883 for the three month
   periods ended March 31, 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>
     Net interest income for the three months ended March 31, 2007 was
$1,719,291 compared to $1,675,726 for 2006. Average interest-earning assets for
the three months ended March 31, 2007 were $206,063,678 compared to $160,044,455
during the same three months of 2006. The yield earned on average
interest-earning assets during the quarter ended March 31, 2007 was 7.11%
compared to 6.72% during the same quarter of 2006. The average rate paid on
interest bearing-liabilities increased from 3.10% for the quarter ended March
31, 2006 to 4.42% during the first quarter of 2007. 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 65.8% of
total loans outstanding at March 31, 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 March 31, 2007 was
$0 compared to $45,000 during the same quarter of 2006. The allowance for loan
losses was $1,429,050 at March 31, 2007 and December 31, 2006.  The ratio of
allowance for loan losses to gross loans was 1.25% at March 31, 2007 compared to
1.19% at December 31, 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.


                                       14
<PAGE>
     The following table summarizes the changes in the allowances for loan
losses arising from loans charged-off, recoveries on loans previously
charged-off, and additions to the allowance which have been charged to operating
expenses and certain ratios relating to the allowance for loan losses.

<TABLE>
<CAPTION>
                                                                  For the three months ended March 31,
                                                                        2007                2006
                                                                 ------------------  ------------------
<S>                                                              <C>                 <C>
OUTSTANDING LOANS:
  Average for the Period                                         $     113,715,097   $      87,913,182
  End of the Period                                                    114,589,604          97,877,589
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                                                                       -                   -
  Real Estate                                                                    -                   -
                                                                 ------------------  ------------------
Total Recoveries                                                                 -                   -
                                                                 ------------------  ------------------
Net Loans Charged-Off                                                            -                   -
Provision for Loan Losses                                                        -              45,000
                                                                 ------------------  ------------------
Balance at End of Period                                         $       1,429,050   $       1,168,494
                                                                 ==================  ==================
RATIOS:
Net Loans Charged-Off (Recoveries) to Average Loans                           0.00%               0.00%
Allowance for Loan Losses to Total Loans                                      1.25%               1.19%
Net Loans Charged-Off (Recoveries) to Beginning
  Allowance for Loan Losses                                                   0.00%               0.00%
Net Loans Charged-Off (Recoveries) to Provision for Loan Losses                 N/A               0.00%

Allowance for Loan Losses to Nonperforming Loans                            401.37%           2,338.53%

Non performing assets                                                      356,042              49,967
</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.

     At March 31, 2007, there were loans totaling $356,042 that were considered
impaired or troubled debt restructurings compared to $49,967 at March 31, 2006
and $435,147 at December 31, 2006.  These loans were delinquent 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. At March
31, 2007 and December 31, 2006, $267,032 and $303,320 of the non-accrual loans,
respectively, were guaranteed by the Small Business Administration. There were
no loan concentrations in excess of 10% of total loans not otherwise disclosed
as a category of loans as of March 31, 2007 or December 31, 2006.  Management is
not aware of any potential problem loans, which were accruing and current at
March 31, 2007, where serious doubt exists as to the ability of the borrower to
comply with the present repayment terms. There was no other real estate owned at
March 31, 2007 and December 31, 2006.


                                       15
<PAGE>
OTHER INCOME

     Other income for the three months ended March 31, 2007 was $205,177
compared to $135,610 for the same period during 2006. The Bank offers fixed rate
commercial real estate loans through third party lenders. The Bank receives fees
for the packaging of the loans provided to the third party lender. The loans are
funded by and become assets of the third party lender. The fees on such loans
for the three months ended March 31, 2007 were $36,900. There were no fees
earned during the same quarter of 2006. Service charges, fees, and other income
for the three months ended March 31, 2007 were $115,395 compared to $71,425 for
the same period of 2006. The increase in service charges, fees and other income
from 2006 to 2007 was primarily from an increase in NSF charges and a $35,000
fee earned by the Company's subsidiary, Charter Services Group, Inc.
("Charter"). There were no fees earned by Charter in 2006.

OTHER EXPENSE

     Salaries and employee benefits for the three months ended March 31, 2007
were $1,019,221 compared to $813,555 for the three months ended March 31, 2006.
The increase in salaries and employee benefits during 2007 was a result of an
increase in the number of employees for the Lodi, California office which opened
in mid-August, 2006 and for Charter. There were 47 employees at March 31, 2007
compared to 37 at March 31, 2006.

     Occupancy and equipment expense for the three months ended March 31, 2007
was $239,714 compared to $209,038 for the same period of 2006.

     Data processing and other professional fees were $150,210 for the three
months ended March 31, 2007 compared to $168,552 for the three months ended
March 31, 2006.

     Loan department expense for the three months ended March 31, 2007 was
$20,245 compared to $104,086 for the same period of 2006. When the Company sells
a government guaranteed loan it establishes a loan servicing asset, which is the
anticipated servicing over the estimated remaining term of the loans sold. If
these loans payoff early the remaining unamortized servicing asset is written
off. During the first quarter of 2006, two large SBA loans paid-off early. The
primary decline in expense is due to amortization expense for loan servicing
assets of $93,393 during the three months ended March 31, 2006. The comparable
expense for the three months ended March 31, 2007 was $14,800.

     Advertising and promotion expense for the three months ended March 31, 2007
was $91,018 compared to $29,589 for the same period during 2006. The increase in
expense was due to a substantial advertising campaign to aggressively promote
the Bank and differentiate the Bank from its competition.
     The remainder of the other operating expenses increased due to the growth
of the Company.

CAPITAL RESOURCES

     Total shareholders' equity at March 31, 2007 was $17,206,339 compared to
$16,966,834 at December 31, 2006.  The increase was primarily from the net
income for the three months ended March 31, 2007 of $113,139 and  an improvement
in market value on investments, which accounted for an increase in other
comprehensive income, net of tax of $76,290.

     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.


                                       16
<PAGE>
     The following table shows the Company's and the Bank's actual capital
amounts and ratios at March 31, 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-
                                                    Actual            For capital adequacy        capitalized under
                                                                              purposes             prompt corrective
                                                                                                   action provisions
                                            ------------------------  ------------------------  ------------------------
                                              Amount        Ratio       Amount        Ratio       Amount        Ratio
                                            -----------  -----------  -----------  -----------  ------------ -----------
<S>                                         <C>          <C>          <C>          <C>          <C>          <C>
As of March 31, 2007:

Company:
  Total capital (to risk weighted assets)   $    29,337        19.0%  $    12,321         8.0%          N/A          N/A
  Tier 1 capital (to risk weighted assets)  $    22,691        14.7%  $     6,160         4.0%          N/A          N/A
  Tier 1 capital (to average assets)        $    22,691        10.4%  $     8,715         4.0%          N/A          N/A
Bank:
  Total capital (to risk weighted assets)   $    21,500        14.0%  $    12,273         8.0%  $    15,341        10.0%
  Tier 1 capital (to risk weighted assets)  $    20,059        13.1%  $     6,137         4.0%  $     9,205         6.0%
  Tier 1 capital (to average assets)        $    20,059         9.3%  $     8,608         4.0%  $    10,736         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 meets the "well capitalized" capital ratio measures at both March
31,  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
unencumbered securities, and loan repayments contribute to liquidity, along with
deposit increases, while loan funding and deposit withdrawals decrease
liquidity.  The Company assesses the likelihood of projected funding
requirements by reviewing historical funding patterns, current and forecasted
economic conditions and individual client funding needs. Commitments to fund
loans and outstanding letters of credit at March 31, 2007 and December 31, 2006
were approximately $36,796,000 and $1,207,000 and $39,365,000 and $1,242,000,
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 short-term interest bearing deposits.  At March 31,
2007, consolidated unencumbered liquid assets totaled $21,325,708 or 10.1% of
total assets compared to $33,109,460 or 14.6% of total assets on December 31,
2006.  In addition to liquid assets, the Company maintains short-term lines of
credit in the amount of $45,800,000 with correspondent banks.  At March 31,
2007, the Company had $45,800,000 available under these credit lines.
Additionally, the Bank is a member of the Federal Home Loan Bank ("FHLB").  At
March 31, 2007, the Bank secured borrowings from the FHLB.  These borrowings are
secured by pledged mortgage loans.  At March 31, 2007, the Company had advances,
borrowings and commitments outstanding of $4,000,000, leaving $13,964,531
available under the FHLB secured borrowing arrangement. 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.


                                       17
<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. The
Bank has established a master repurchase agreement with two brokerage firms to
enable such transactions. The Bank can also pledge securities to borrow from the
FRB and the FHLB.

INFLATION

     The impact of inflation on a financial institution differs significantly
from that exerted on manufacturing or other commercial concerns, primarily
because its assets and liabilities are largely monetary.  In general, inflation
primarily affects the Company and the Bank indirectly through its effect on
market rates of interest, and thus the ability of the Bank to attract loan
customers.  Inflation affects the growth of total assets by increasing the level
of loan demand, and potentially adversely affects the Company's and the Bank's
capital adequacy because loan growth in inflationary periods can increase at
rates higher than the rate that capital grows through retention of earnings,
which the Company may generate in the future.  In addition to its effects on
interest rates, inflation directly affects the Company by increasing operating
expenses. The effects of inflation were not material to the Company's results of
operations during the periods ending March 31, 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 March 31, 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 $38,003,000 and $40,607,000 at March 31, 2007 and
December 31, 2006, respectively.  As a percentage of net loans and leases these
off-balance sheet items represent 33.6% and 35.8%, respectively.

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

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

EFFECTS OF TERRORISM

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

WEBSITE ACCESS

     Information 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


                                       18
<PAGE>
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 Results of
Operations-Financial Condition-Liquidity and Cash Flow" 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.

<TABLE>
<CAPTION>
                                           Projected change in economic
                                                      value
                                    ------------------------------------------
                                         March 31,             December 31,
Change in interest rates                   2007                   2006
------------------------            --------------------  --------------------
<S>                                 <C>                   <C>
100 basis point rise                              -18.5%                -15.6%
100 basis point decline                             7.6%                  5.2%
</TABLE>

     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.


                                       19
<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:

<TABLE>
<CAPTION>
                                        Projected change in net interest
                                                     income
                                    ----------------------------------------
                                           March 31,         December 31,
Change in interest rates                     2007               2006
------------------------            -------------------  -------------------
<S>                                 <C>                  <C>
100 basis point rise                              3.91%                4.32%
100 basis point decline                           2.51%                1.12%
</TABLE>

     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 8,140 shares of FHLB of San Francisco and 400 shares
of Pacific Coast Banker's 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 March 31, 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 March 31, 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


                                       20
<PAGE>
PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

            None

ITEM 1A.    RISK FACTORS

            None

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

            None

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

            None

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

            None

ITEM 5.     OTHER INFORMATION

            None

ITEM 6.     EXHIBITS

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

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

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

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

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

                     (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.


                                       21
<PAGE>
                     (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.

                     (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.


                                       22
<PAGE>
                     (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.

                     (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)  Private placement to an institutional
                              investor of approximately $5 million of trust
                              preferred securities, incorporated by reference
                              from Registrant's Form 8-K, filed with the
                              Securities and Exchange Commission on August 23,
                              2006.

                     (10.29)  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.


                                       23
<PAGE>
                     (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.


                                       24
<PAGE>
                                   SIGNATURES

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


                                        SERVICE 1ST BANCORP

Date: May 14, 2007                      By:     /s/ JOHN O. BROOKS
                                               ---------------------------------
                                                John O. Brooks
                                                Chief Executive Officer
                                                (Principal Executive Officer)


Date: May 14, 2007                      By:     /s/ ROBERT E. BLOCH
                                              ----------------------------------
                                                Robert E. Bloch
                                                Executive Vice President and
                                                Chief financial Officer
                                                (Principal Financial and
                                                Accounting Officer)


                                       25
<PAGE>
<TABLE>
<CAPTION>
                                         EXHIBIT INDEX
                                         -------------

Exhibit                                                                                 Sequential
Number                                    Description                                   Page Number
-------  -----------------------------------------------------------------------------  -----------
<S>      <C>                                                                            <C>
31.1     Certification of Chief Executive Officer pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002.                                                         27
31.2     Certification of Chief Financial Officer pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002.                                                         28
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.        29
</TABLE>


                                       26