EXHIBIT 99.1

FOR IMMEDIATE RELEASE	Bank Contact: Jonathan J. Wick
	Executive Vice President/COO/CFO
	(760) 325-4442

CANYON BANCORP REPORTS

ANNUAL EARNINGS

PALM SPRINGS, CA: January 30, 2008 - Canyon Bancorp (OTCBB: CYBA) President and CEO Stephen G. Hoffmann said, “In light of this particularly challenging economic climate, we are pleased to report growth in assets, loans, deposits and shareholders’ equity. Net earnings of $3.5 million reflect a return on equity of over 13%. We continue to be cautiously optimistic and are pleased to announce the purchase of land for the Bank’s first branch in the City of Indio which should further add to Canyon’s profitable growth.”

Canyon Bancorp reported net income of $3,519,000 or $1.38 per diluted share for the full year ended December 31, 2007, compared to income of $4,257,000 or $1.68 per diluted share for the year ended December 31, 2006. For the fourth quarter ended December 31, 2007, Canyon Bancorp earned $421,000 or $0.17 per diluted share compared to $1,170,000 or $0.46 per diluted share for the same period of 2006.

Other financial highlights as of year-end 2007 compared to year-end 2006:

• Total assets increased $36.8 million or 14.6 percent to $289.2 million.

• Net loans receivable increased $45.6 million or 22.5 percent to $248.5 million.

• Book value per share increased $1.49 or 14.9 percent to $11.52.

• Total shareholders’ equity increased by $4.2 million or 17.0 percent to $28.6 million.

• Net interest margin for the fourth quarter 2007 was 5.47 percent.

In December, the Company closed escrow on a 1.56 acre parcel of land in Indio which the Bank is in the process of developing into its fifth full-service Coachella Valley branch. Management anticipates building a free standing facility with drive through access. During the construction and development phase of this new facility, a temporary facility is expected to open in the summer of 2008 which will include an ATM. The site of the new branch location is 81-385 Highway 111 in West Indio.

Canyon Bancorp is a bank holding company with one banking subsidiary, Canyon National Bank, a full-service commercial bank and member of the FDIC. Palm Springs branch locations are at 1711 East Palm Canyon Drive at the Smoke Tree Village Shopping Center and 901 East Tahquitz Canyon Way. Palm Desert branch locations are at 74-150 Country Club Drive and 77-933 Las Montanas Road across from Sun City. Shares of the Company’s common stock are traded on the Over the Counter Bulletin Board – stock symbol CYBA.

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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CANYON BANCORP & SUBSIDIARY

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

	12/31/2007 (Unaudited)			12/31/2006 (Audited)
Assets
Cash and cash equivalents	$	13,562		$	20,569
Interest-bearing deposits in other financial institutions		—			2,000
Investment securities available for sale		12,196			14,250
Federal Home Loan Bank, Federal Reserve Bank and Pacific Coast Bankers’ Bank restricted stock, at cost		1,890			1,558
Loans held for sale		123			752
Loans receivable, net		248,468			202,881
Furniture, fixtures and equipment		5,680			4,548
Income tax receivable		909			276
Deferred tax asset		1,430			1,713
Other real estate owned		3,073			—
Other assets		1,825			3,821
Total Assets	$	289,156		$	252,368
Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	73,961		$	90,248
NOW accounts		14,223			9,645
Savings and money market		79,262			67,770
Time certificate of deposits		63,181			58,767
Total Deposits		230,627			226,430
Other borrowed funds		28,160			—
Other liabilities		1,795			1,515
Total Liabilities		260,582			227,945
Commitments and contingencies		—			—
Stockholders’ Equity:
Serial Preferred Stock, $5.00 par value; authorized 10,000,000 shares; none issued or outstanding		—			—
Common Stock; authorized 10,000,000 shares; 2,479,927 and 2,316,627 shares issued and outstanding as of December 31, 2007 and December 31, 2006, respectively		23,513			20,803
Accumulated other comprehensive income unrealized (loss) on investment securities available-for-sale		(15	)		(106	)
Retained earnings		5,076			3,726
Total Stockholders’ Equity		28,574			24,423
Total Liabilities and Stockholders’ Equity	$	289,156		$	252,368

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CANYON BANCORP & SUBSIDIARY

Consolidated Statement of Operations

(Unaudited)

For the three and twelve months ended December 31, 2007 and 2006

(Dollars in thousands, except per share amounts)

	Three months ended December 31,					Twelve months ended December 31,
	2007		2006			2007		2006
Interest income:
Loans receivable	$	5,145	$	4,743		$	20,034	$	17,251
Federal funds sold		45		187			522		833
Interest bearing deposits in other financial institutions		1		13			50		133
Investment securities available for sale		190		202			679		915
Total interest income		5,381		5,145			21,285		19,132
Interest expense:
Deposits		1,517		1,272			5,883		4,146
Other borrowed funds		249		—			319		—
Total interest expense		1,766		1,272			6,202		4,146
Net interest income		3,615		3,873			15,083		14,986
Provision for loan losses		900		100			1,310		525
Net interest income after provision for loan losses		2,715		3,773			13,773		14,461
Noninterest income:
Service charges and fees		199		167			712		591
Loan related fees		77		111			464		541
Lease administration fees		122		305			661		1,278
Automated teller machine fees		179		174			699		622
Net gain (loss) on disposition of fixed assets		—		(2	)		—		(5	)
Total noninterest income		577		755			2,536		3,027
Noninterest expenses:
Salaries and employee benefits		1,311		1,343			5,282		5,418
Occupancy and equipment expense		403		369			1,510		1,456
Professional fees		96		70			373		339
Data processing		153		129			583		530
Marketing and advertising expense		109		112			436		431
Director and shareholder expense		127		116			516		480
Other operating expense		391		427			1,694		1,646
Total noninterest expenses		2,590		2,566			10,394		10,300
Earnings before income taxes		702		1,962			5,915		7,188
Income Tax Expense		281		792			2,396		2,931
Net earnings	$	421	$	1,170		$	3,519	$	4,257
Earnings Per Share:
Basic	$	0.17	$	0.48		$	1.43	$	1.77
Diluted	$	0.17	$	0.46		$	1.38	$	1.68
Weighted Average Shares Outstanding:
Basic		2,464,901		2,426,931			2,454,921		2,406,529
Diluted		2,526,967		2,535,196			2,543,964		2,529,777

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CANYON BANCORP & SUBSIDIARY

Selected Ratios

(Unaudited)

	Three Months Ended 1						Twelve Months Ended
	12/31/2007			12/31/2006			12/31/2007		12/31/2006
Return on average equity		5.86	%		19.45	%	13.05	%	19.43	%
Return on average assets		0.59	%		1.80	%	1.31	%	1.70	%
Yield on interest earning-assets		8.15	%		8.63	%	8.52	%	8.34	%
Cost of interest-bearing liabilities		3.94	%		3.58	%	3.86	%	3.03	%
Net interest margin		5.47	%		6.50	%	6.04	%	6.53	%
Non-interest income / average assets		0.79	%		1.17	%	0.94	%	1.21	%
Non-interest expense / average assets		3.62	%		3.96	%	3.85	%	4.11	%
Net non-interest expense / average assets		2.83	%		2.79	%	2.91	%	2.90	%
Net charge-offs/(recoveries) to average loans		2.10	%		0.02	%	0.74	%	0.02	%
	as of:
	12/31/2007			12/31/2006
Capital to assets ratio		9.88	%		9.68	%
Allowance for loan losses / gross loans		1.21	%		1.65	%
Loan to deposit ratio		109.5	%		91.4	%
Adversely classified loans to gross loans		0.9	%		1.1	%
Demand deposit accounts / total deposit accounts		32.1	%		39.9	%
Book value per share 2	$	11.52		$	10.03

¹ Interim periods annualized

² Restated for past stock dividends and splits

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