Canyon National Bank Reports Record $562,000 First Quarter Net Income.

Business Editors

PALM SPRINGS, Calif.--(BUSINESS WIRE)--April 23, 2004

Sustaining growth in total assets, loans and deposits, (OTCBB:CYNA) today announced record net income of $562,000 for the first quarter ended March 31,2004 -- an increase of $159,000 or 39.5 percent compared to income of $403,000 for the same period in 2003.

Annualized return on average assets for the quarter was 1.30 percent, with a return on average shareholders' equity of 17.9 percent.

Other financial highlights for the first quarter 2004 compared to the same period in 2003:

*Total Assets increased by $32.7 million or 22.4 percent

to $178.7 million.

*Net loans increased by $35.9 million or 42.6 percent to

$120.1 million.

*Total deposits increased by $30.3 million or 22.9

percent to $162.7 million.

"In light of our first quarter record financial performance, Canyon National Bank is off to a strong start for 2004. Interest rates continue to remain stable with a slight upward bias. And the economy continues to improve nationally, while the Coachella Valley is experiencing significant growth, particularly in construction," said President and CEO Stephen G. Hoffmann.

"Combine these positive trends with the bank's healthy balance sheet and excellent professional staff and we have the essential ingredients for continued growth and success," Hoffmann said.

The bank's new full-service Palm Desert branch is on target to open this quarter. This new 8,500 square foot office will serve as the hub for the bank's mid-valley expansion. In addition, a new branch in Palm Springs, on Tahquitz Canyon Way is scheduled to open in the third quarter of 2004 and will house Tribal Services while providing special personal banking service.

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 currently 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.

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              SELECTED UNAUDITED FINANCIAL STATEMENT INFORMATION

    Growth Performance

    Balance as of                March 31,      March 31,      Dec 31,
   (in millions)                  2004           2003           2003



    Total assets                   $178.7         $146.0       $159.9

    Net loans                       120.1           84.2        115.4

    Deposits                        162.7          132.4        147.0

    Shareholders' equity             12.8           10.8         12.2



                                 For the Quarter Ending

    Financial Performance        March 31,      March 31,
     (in thousands,               2004           2003
     except for earnings
     per share)

    Net interest income            $2,129         $1,653

    Earnings before income            951            679
     taxes
    Net income                        562            403

    Earnings per share:(a)

        Basic                        0.30           0.21

        Diluted                      0.27           0.20

    Return on average                1.30%          1.16%
     assets (ROA)(b)
    Return on average
     common

    Shareholders equity             17.86%         15.01%
     (ROE)(b)

    (a) Adjusted for 2 for 1 stock split declared by the Board of
Directors on March 30, 2004, subject to shareholder approval, and
prior stock dividends.

    (b) Annualized for interim periods

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