Canyon Bancorp Reports Record Annual Earnings.

PALM SPRINGS, Calif. -- Canyon Bancorp (OTCBB:CYBA) today announced record net income of $4,257,000 or $1.77 per diluted share for the full year ended December 31, 2006 - an increase of $603,000 or 16.5 percent over the prior year's income of $3,654,000 or $1.52 per diluted share.

For the fourth quarter ended December 31, 2006, Canyon Bancorp earned $1,170,000 or $0.48 per diluted share compared to $1,042,000 or $0.44 per diluted share for the same period of 2005, an increase of $128,000 or 12.2 percent.

Return on average shareholders' equity for the full year 2006 was 19.43 percent, with a return on average assets of 1.70 percent.

"Canyon National Bank's record-setting performance in 2006 was positively impacted by the bank's continued strength in its net interest margin which increased by 37 basis points, as both loans and deposits increased from prior year levels," stated President and CEO Stephen G. Hoffmann.

Other financial highlights as of year-end 2006 compared to year-end 2005:

* Capital to assets ratio increased to 9.68 percent from 8.13 percent.

* Book value per share increased $1.97 or 23.0 percent to $10.54.

* Total assets increased $13.0 million or 5.5 percent to $252.4 million.

* Net loans increased $31.0 million or 18.1 percent to $202.9 million.

* Total deposits increased $7.9 million or 3.6 percent to $226.4 million.

* Total shareholders' equity increased by $5.0 million or 25.6 percent to $24.4 million.

* Net interest margin for the full year 2006 was 6.53 percent compared to 6.16 percent for the full year 2005.

Highlights of major activities in 2006 include:

* Opening in March of the bank's fourth branch, the Desert Business Park branch, a 2,600-square-foot, full-service facility located in Palm Desert directly across from Sun City Palm Desert.

* The issuance of a five percent stock dividend in December. This is the bank's seventh stock dividend or stock split since opening in July 1998.

Canyon Bancorp is a bank holding company with one banking subsidiary, Canyon National Bank, a full-service commercial bank and member of the FDIC. Palm Springs branch locations are at 1711 East Palm Canyon Drive at the Smoke Tree Village Shopping Center and 901 East Tahquitz Canyon Way. Palm Desert branch locations are at 74-150 Country Club Drive and 77-933 Las Montanas Road across from Sun City. Shares of the Company's common stock are traded on the Over the Counter Bulletin Board - stock symbol CYBA.

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements.

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