Citizens Bancorp Announces First Quarter 2007 Earnings.

NEVADA CITY, Calif. -- Today, Citizens Bancorp (the "Company") (OTCBB:CZNB), the holding company of Citizens Bank of Northern California (the "Bank"), announced financial results for the three month period ended March 31, 2007.

Total assets for the Company as of March 31, 2007 were $281.5 million, an increase of $43.1 million, or 18% from $238.4 million as of March 31, 2006. Total loans for the Company as of March 31, 2007 were $260.4 million, an increase of $40.3 million, or 18% compared to $220.1 million as of March 31, 2006. Over the same period, deposits grew $31.6 million, or 15% to $241.8 million at March 31, 2007 compared to $210.2 million at March 31, 2006.

Net income for the quarter ended March 31, 2007 was $608,000, a 31% decrease compared to $876,000 in the same period in 2006. The Company earned $0.34 and $0.50 per diluted share for the three months ended March 31, 2007 and 2006, respectively. Earnings per share for 2006 have been adjusted to reflect the 5% stock dividend declared in June 2006. The decrease in net income of $268,000 was attributed primarily to non-interest expenses. President/Chief Executive Officer, Judy Hess said, "As expected, the results reflect additional personnel and occupancy costs related to opening our two newest branches. The Truckee branch opened September 2006 and the Auburn branch opened in January 2007. Therefore this is the first quarter we are seeing the full impact of the expenses related to the new branches. In addition, continued pressure on our net interest margin primarily as a result of increased funding costs, is also reflected in our earnings."

Net interest income was $3.48 million for the three month period ending March 31, 2007 an increase of $239,000, or 7% as compared to $3.24 million for the same period in 2006. The Bank's net interest margin dropped from 6.06% in the three month period ended March 31, 2006 to 5.39% in the three month period ended March 31, 2007. Despite compressed net interest margins, the higher cost of funding was somewhat mitigated by relatively good growth in earning assets during the period. Non-interest bearing deposits declined $8.5 million and interest-bearing deposits increased $60.7 million year-over-year, as rising interest rates during that time enticed depositors to move non-interest bearing deposits into interest bearing deposit products. Also affecting the change in net interest income year over year was the $6.2 million increase in junior subordinated debentures during June of 2006 which increased the total of these debentures to $15.5 million. The Company's use of Trust Preferred Securities, which help to increase regulatory capital, has allowed for continued growth and expansion.

Hess went on to say, "While the costs associated with our recent expansion into new markets have created short-term earnings pressure, we believe the Auburn and Truckee markets hold great promise for our Bank."

Founded in February 1995, Citizens Bank, headquartered in Nevada City, became a wholly owned subsidiary of the Company in 2003. In addition to the new Auburn branch in Placer County, the Bank has six other branches in communities throughout Nevada County, including Nevada City, Grass Valley, Penn Valley, Lake of the Pines, and Truckee. The opening of the Auburn branch represents the Bank's first physical entry into neighboring Placer County. The Bank offers community banking services, including a wide variety of deposit products, commercial, residential and consumer loans, and other traditional banking products and services, designed to meet the needs of small and middle market businesses and individuals.

www.citizensbanknc.com

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe", "expect", "intend", "estimate" or words of similar meaning, or future or conditional verbs such as "will", "would", "should", "could" or "may". Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services. These and other important factors are detailed in various Federal Deposit Insurance Corporation filings made periodically by the Bank, copies of which are available from the Bank without charge. The Company or the Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

[TABLE OMITTED]
[TABLE OMITTED]

(1) Adjusted for the 5% stock dividend distributed in June 2006

[TABLE OMITTED]