Canyon Bancorp Reports Third Quarter Net Income of $949,000.

PALM SPRINGS, Calif. -- Canyon Bancorp (OTCBB:CYBA) today announced net income of $949,000 or $0.39 per diluted share for the third quarter ended September 30, 2007 compared to income of $1,078,000 or $0.45 per diluted share for the third quarter of 2006. For the nine months ended September 30, 2007, Canyon Bancorp earned $3,098,000 or $1.28 per diluted share compared to $3,087,000 or $1.28 per diluted share for the same period of 2006.

Other financial highlights for the third quarter 2007 compared to the same period in 2006:

* Total assets increased $31.9 million or 12.9 percent to $279.9 million.

* Net loans receivable increased $40.4 million or 20.2 percent to $240.1 million.

* Total deposits increased $6.7 million or 3.0 percent to $230.0 million.

* Book value per share increased $1.45 or 13.8 percent to $11.93.

* Total shareholders' equity increased by $5.0 million or 21.7 percent to $27.9 million.

* Net interest margin for the third quarter 2007 was 5.91 percent.

President and CEO Stephen G. Hoffmann said, "We are pleased in these more challenging times to have recognized growth in assets, loans and deposits. We have increased our market share of deposits in the Coachella Valley and loan quality remains strong. Income has been affected by a compression in our net interest margin and by the slow down in the real estate industry. However, we kept noninterest expense in check."

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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