Canyon National Bank Reports Record $1.89 Million Annual Net Income.

Business Editors

PALM SPRINGS, Calif.--(BUSINESS WIRE)--Feb. 2, 2004

Continuing a steady trend of growth and profitability, Canyon National Bank (OTCBB:CYNA) achieved net income of $1,894,000 for the year ended Dec. 31, 2003. This represents an increase of 40 percent compared to income of $1,355,000 for the previous year.

Annualized return on average shareholders' equity for the 2003 period was 16.71 percent, with a return on average assets of 1.26 percent.

Net income for the fourth quarter ending December 2003 was $522,000, with earnings at $.52 per diluted share, an increase of $145,000 or 38 percent compared to income of $377,000 and earnings of $.39 per diluted share for the same period in 2002.

Other financial highlights for 2003 compared to 2002:

-- Total assets increased by $27.6 million to $159.9 million or

20.9 percent

-- Net loans increased by $30.2 million to $115.4 million or 35.5

percent

-- Total deposits increased by $26.4 million to $147.0 million or

21.9 percent

"Our continued growth in loans and deposits contributed significantly to the bank's success and profitability during the year. As evidence of our solid financial performance, Canyon National Bank declared two 5 percent shareholder dividends in 2003, while total earnings and assets continued to increase at a steady pace. During the year we enhanced our Advisory Board Program and have elected several new members to the Advisory Board. Each has been selected from an elite group of business and community leaders and are true ambassadors for the bank," said President and CEO Stephen G. Hoffmann.

"Also during the year, we expanded our services enabling us to provide a unique choice of banking options for customers. We offer fully automated systems for customers who prefer to utilize Internet banking from their personal computers. With the addition of bill pay to our iBank Internet program, customers can balance their accounts and pay their bills from home or office. The foundation of our success continues to be our employees who provide friendly, personal assistance. No matter what style of banking our customer prefers, high tech or high touch, we have it all at Canyon National Bank," said Hoffmann.

To accommodate further growth, construction is well underway on the bank's new 8,500 square foot branch office in Palm Desert, slated to open in the second quarter of 2004.

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

Balance As of                   Dec. 31, 2003      Dec. 31, 2002
                                (in millions)

Total assets                        $159.9            $132.3
Net loans                            115.4              85.2
Deposits                             147.0             120.6
Shareholders' equity                  12.2              10.5

For the Quarter ended           Dec. 31, 2003      Dec. 31, 2002
                          (in thousands, except for
                             earnings per share)

Net interest income                 $2,106            $1,569
Earnings before income taxes           878               639
Net income                             522               377

Earnings per share:

   Basic                             $0.56             $0.41
   Diluted                            0.52              0.39

Return on average assets (ROA)        1.34%             1.13%
Return on average common
 Shareholders' equity (ROE)          17.37%            14.63%


For the Year ended               Dec. 31, 2003     Dec. 31, 2002
                              (in thousands, except for
                               earnings per share)

Net interest income                 $7,488            $6,026

Earnings before income taxes         3,192             2,287

Net income                           1,894             1,355

Earnings per share:

   Basic                            $ 2.02             $1.46
   Diluted                            1.91              1.39

Return on average assets (ROA)        1.26%             1.08%
Return on average common
 Shareholders' equity (ROE)          16.71%            14.02%

Further information can be obtained at the bank's Web site www.CanyonNational.com or via e-mail at [e-mail] or by calling Stephen G. Hoffmann, Pres. & CEO, 760-325-4442.