Canyon National Bank Reports First Quarter Record Earnings; Net Income Exceeds $400,000.

Business Editors

PALM SPRINGS, Calif.--(BUSINESS WIRE)--April 24, 2003

Continuing a solid trend of growth and profitability, Canyon National Bank (OTCBB:CYNA) has announced net income of $403,000 resulting in $0.43 in diluted earnings per share for the first quarter ended March 31, 2003 -- an increase of 32 percent compared to income of $305,000 and earnings of $0.33 per diluted share for the same period in 2002.

Annualized return on average assets for the quarter was 1.16 percent, with a return on average shareholders' equity of 15.01 percent.

Other financial highlights for the first quarter 2003 comparative to the same period in 2002:

-- Total assets increased by $23.8 million or 19.5 percent, to

$146.0 million

-- Net loans of $84.2 million increased 12.9 percent or $9.6

million

-- Total deposits of $132.4 million increased 17.6 percent or

$19.8 million

Canyon National Bank's positive financial performance is reflected in its $1.36 million record earnings for the year ended Dec. 31, 2002, and the recent five percent stock dividend.

President and CEO Stephen G. Hoffmann said, "We see continued signs of growth in earnings and assets during 2003 through a proactive expansion of our banking services.

"For example, the bank has introduced internet bill payment to enhance our internet banking service, and by year-end we will replace our current smaller Palm Desert branch with a spacious new facility to keep pace with our rapidly growing number of mid-valley customers," said Hoffmann.

"Despite the challenges of an uncertain economy and the resulting low interest investment climate, Canyon National Bank's deposit mix continues to grow, along with a steady increase in our customer base. At the same time, we remain firmly committed to community involvement at all levels of our banking staff," he said.

Hoffmann announced the bank's Annual Meeting is set for April 28, 2003.

As a full-service commercial bank, Canyon National Bank is a member of the FDIC, with shares of its common stock traded on the Over the Counter Bulletin Board -- symbol CYNA.

The bank's Palm Springs headquarters branch is located at 1711 East Palm Canyon Drive in the Smoke Tree Village Shopping Center. The Palm Desert branch is located at the Desert Springs Marketplace Shopping Center, 74-998 Country Club Drive.

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.

          Selected Unaudited Financial Statement Information


Growth Performance

Balance as of        March 31, 2003   March 31, 2002    Dec. 31, 2002
----------------------------------------------------------------------
(in millions)

Total assets            $ 146.0          $ 122.2            $ 132.3
Net loans                  84.2             74.6               85.2
Deposits                  132.4            112.6              120.6
Shareholders' equity       10.8              9.1               10.5



                                       For the Quarter ended
Financial Performance           March 31, 2003      March 31, 2002
----------------------------------------------------------------------
(in thousands, except for earnings per share)

Net interest income               $ 1,653            $ 1,399
Earnings before income taxes          679                514
Net income                            403                305
Earnings per share:
  Basic                              0.45               0.34
  Diluted                            0.43               0.33
Return on average assets (ROA)       1.16%              1.04%
Return on average common
 Shareholders equity (ROE)          15.01%             13.49%