Charter Oak Bank Reports Third Quarter Results.

NAPA, Calif. -- Charter Oak Bank, (OTCBB:CHOB) headquartered in Napa, California reported a net loss for the third quarter of $48,000 as compared to the third quarter of 2005 net loss of $274,000. The year to date net loss was $306,000; an improvement of $806,000 from the net loss during the same period in 2005 of $1,112,000. The Bank reported no delinquent or past due loans and is considered "well-capitalized" by regulatory definition.

As of September 30, 2006, total assets were $54.1 million. That represents an increase of $12.9 million as compared to the September 30, 2005 total of $41.2 million. Total loans were $47.9 million as compared to $25.4 million one year ago. The bank's deposits at September 30, 2006 were $32.5 million, as compared to $25.1 million a year ago.

Brian Kelly, President & Chief Executive Officer, states "We are very proud of the progress we have made during our first 21 months of operation. In the past year, Charter Oak Bank has grown more than any other bank in Napa County. We are also quite proud that the North Bay Business Journal named Charter Oak as one of the "24 Best Places to Work". We have a great staff and great customers. We all look forward to continued positive results."

Charter Oak Bank operates in Napa and St. Helena.

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 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