Charter Oak Bank Reports Solid First Quarter Results.

NAPA, Calif. -- Charter Oak Bank, (OTCBB:CHOB) headquartered in Napa, California reported net income of $160,000 during the first quarter of 2008, an improvement of $202,000 from the prior year first quarter net loss of $42,000. Total assets were $115 million as of March 31, 2008, an increase of $43.3 million in the past twelve months. Comparing loans and deposits from a year earlier, loans ended the first quarter of 2008 at $98.7 million, up 51% or $33.3 million, and the Bank's deposits were at $90.5 million, up 64.5% or $35.5 million - continuing the strong consistent growth of the Bank's plan. Charter Oak Bank reported no delinquent, past due, or sub-prime loans, and is considered "well-capitalized" by regulatory definition.

Brian Kelly, President/CEO stated "We are elated with these results. We've now had three straight quarters of profitability. Coupled with steady, consistent growth and a constant eye toward portfolio and operational quality, this places the Bank in position for continued success in 2008. Having no sub-prime loans and with very positive audits and reviews, points to the underlying strength of Charter Oak Bank. We are proud of these results and the underlying value that we are able to provide our shareholders."

Forward-Looking Statements 

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results are pre-fiscal year-end audit and may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors