Premier Service Bank Announces Earnings for the First Quarter of 2008

Premier Service Bank PSBK today announced its financial results for the first quarter of 2008.

At March 31, 2008, the Bank had total assets of $144.7 million, representing a decrease of $3.3 million, or 2.2% less than total assets of $148.0 million at March 31, 2007. Total deposits at March 31, 2008 were $109.6 million, or 18.9% less than total deposits of $135.2 million at March 31, 2007. Non-interest bearing demand deposits totaled $43.5 million at March 31, 2008, representing 39.7% of total deposits at that date, compared to $49.1 million of non-interest bearing demand deposits at March 31, 2007, which represented 36.3% of total deposits at that date.

The Bank's gross loan portfolio grew to $111.9 million at March 31, 2008, representing a 20.9% increase over gross loans of $92.6 million at March 31, 2007. Unfunded credit commitments stood at $33.1 million at March 31, 2008, representing an 8.3% decrease compared to unfunded commitments of $36.0 million at March 31, 2007. At March 31, 2008, 1.09% of the Bank's loans were nonperforming, compared to 0.004% in nonperforming loans at March 31, 2007. The Bank had no foreclosed real estate at March 31, 2008, and none at March 31, 2007. At March 31, 2008, non-accrual loans represented 0.94% of total loans, compared to no non-accrual loans at March 31, 2007. The allowance for loan losses totaled $1.29 million at March 31, 2008, or 1.15% of total loans as of that date, compared to $1.09 million at March 31, 2007, or 1.17% of total loans as of that date.

For the quarter ended March 31, 2008, the Bank reported net earnings of $151 thousand, or $0.12 per diluted share, compared to net earnings of $122 thousand, or $0.10 per diluted share for the first quarter of 2007. The $29 thousand increase in net earnings at March 31, 2008, compared to the first quarter of 2007, resulted primarily from increased interest income from the growth within the Bank's loan portfolio and a modest decline in interest expense associated with the interest rates paid on interest bearing deposits. Growth within the loan portfolio also required the Bank to make a $56 thousand provision to its allowance for loan losses for the quarter ended March 31, 2008, compared to no loan loss provision requirement for the quarter ended March 31, 2007.

The Bank's net interest margin for the quarter ended March 31, 2008 was 5.38%, an increase of 0.15% compared to the fourth quarter of 2007 and an increase of 0.20% compared to the first quarter of 2007.

The Bank remained well capitalized at March 31, 2008 and continued to have no sub-prime residential loans in its portfolio. Total shareholders' equity at March 31, 2008 was $13.4 million, representing an increase of $1.14 million, or 9.3% over total shareholders' equity of $12.3 million at March 31, 2007.

Premier Service Bank is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. The Bank provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about Premier Service Bank is available at its website at www.premierservicebank.com.

Forward-looking Statements

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Premier Service Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and in the following: Premier Service Bank's ability to increase its assets, deposits and total loans, control expenses, retain critical personnel, manage interest rate risk, manage technological changes, address regulatory requirements, and other risks discussed from time to time in Premier Service Bank's filings and reports with the Federal Deposit Insurance Corporation. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Premier Service Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

For a more complete discussion of risks and uncertainties, investors and security holders are urged to read Premier Service Bank's annual report on Form 10-KSB, quarterly reports on Form 10-QSB and other reports filed by Premier Service Bank with the FDIC.

Financial Data - Premier Service Bank
(Unaudited)
                                       Quarter Ended
                     -------------------------------------------------
(In Thousands)       Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
                        2008      2007      2007      2007      2007
----------------------------------------------------------------------

Interest income(not
 taxable equivalent) $  2,430  $  2,389  $  2,324  $  2,363  $  2,364
Interest expense          671       676       649       707       700
                     --------- --------- --------- --------- ---------
Net interest income     1,759     1,713     1,675     1,656     1,664
Provision for loan
 losses                    56       108        77        10         -
                     --------- --------- --------- --------- ---------
Net interest income
 after provision for
 loan losses            1,703     1,605     1,598     1,646     1,664
Non-interest income       178       180       190       178       140
Non-interest expense    1,651     1,516     1,531     1,656     1,607
                     --------- --------- --------- --------- ---------
Income before income
 taxes                    230       269       257       168       197
(Benefit)/Provision
 for income taxes          79        91        99        60        75
                     --------- --------- --------- --------- ---------
Net income           $    151  $    178  $    158  $    108  $    122
                     --------- --------- --------- --------- ---------

                                       Quarter Ended
                     -------------------------------------------------
(In Thousands)       Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
                        2008      2007      2007      2007      2007
------------------------------------------------------------ ---------
Per share:
Net income - basic   $   0.12  $   0.14  $   0.13  $   0.09  $   0.10
Weighted average
 shares used in
 basic                  1,256     1,255     1,255     1,251     1,226
Net income - diluted $   0.12  $   0.14  $   0.12  $   0.08  $   0.10
Weighted average
 shares used in
 diluted                1,270     1,279     1,293     1,296     1,282
Book value at period
 end                 $  10.66  $  10.46  $  10.18  $   9.93  $   9.90
Ending shares           1,257     1,255     1,255     1,255     1,238


Balance Sheet - At
 Period-End
Cash and due from
 banks               $  5,908  $  3,571  $  6,546  $  7,789  $ 10,346
Investments and Fed
 fund sold             22,630    21,813    23,836    29,553    41,206
Gross Loans           111,933   110,045   101,513    97,262    92,579
  Deferred fees          (375)     (369)     (339)     (276)     (314)
  Allowance for loan
   losses              (1,287)   (1,259)   (1,152)   (1,075)   (1,085)
Net Loans             110,271   108,417   100,022    95,911    91,180
Other assets            5,854     5,531     5,326     5,440     5,253
                     --------- --------- --------- --------- ---------
    Total Assets     $144,664  $139,332  $135,730  $138,693  $147,985
                     --------- --------- --------- --------- ---------

Non-interest-bearing
 deposits            $ 43,461  $ 38,356  $ 46,373  $ 47,742  $ 49,055
Interest-bearing
 deposits              66,124    71,059    65,927    77,872    86,117
Other liabilities      21,681    16,785    10,660       617       558
Shareholders' equity   13,398    13,132    12,770    12,462    12,255
                     --------- --------- --------- --------- ---------
    Total
     Liabilities and
     Shareholders'   $144,664  $139,332  $135,730  $138,693  $147,985
                     --------- --------- --------- --------- ---------

Asset Quality &

 Capital - At
 Period-End
Non-accrual loans    $  1,055  $    700  $      -  $      -  $      -
Loans past due 90
 days or more        $    160  $      -  $      -  $    443  $      4
Other real estate
 owned                      -         -         -         -         -
                     --------- --------- --------- --------- ---------
Total non-performing
 assets              $  1,215  $    700  $      -  $    443  $      4
                     --------- --------- --------- --------- ---------

Allowance for losses
 to loans, gross         1.15%     1.14%     1.13%     1.11%     1.17%
Non-accrual loans to
 total loans, gross      0.94%     0.64%      N/A       N/A       N/A
Non-performing asset
 to total assets         0.84%     0.50%      N/A      0.32%      N/A
Allowance for losses
 to non-performing
 loans                 105.93%   179.86%      N/A    242.66%      N/A

Total capital to
 risk-adjusted
 assets                 12.09%    12.08%    12.61%    12.52%    12.57%
Tier one capital to
 risk-adjusted
 assets                 10.96%    10.96%    11.50%    11.47%    11.49%
Equity to average
 assets (leverage
 ratio)                  9.39%     9.46%     9.52%     9.04%     8.64%

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