Exhibit 99.1

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

CANYON BANCORP REPORTS ASSETS TOP $300 MILLION

PALM SPRINGS, CA: May 1, 2008 - Canyon Bancorp (OTCBB: CYBA) today announced total assets have grown to $300 million with net loans receivable exceeding $250 million and net income for the first quarter 2008 of $52,000 or $0.02 per diluted share. Like many Southern California banks, the Company’s earnings were affected by the current residential real estate market conditions that impacted construction loans. The provision for loan losses increased from $90,000 in the first quarter of 2007 to $1,160,000 in the first quarter of 2008 due to these factors and increases in classified loans and loan charge-offs.

President and CEO Stephen G. Hoffmann said, “In view of the challenging economy, particularly real estate in Southern California, it is encouraging to report solid growth in assets, loans, deposits and shareholders equity compared to the first quarter 2007.”

Other financial highlights for the first quarter 2008 compared to the same period in 2007:

• Total assets increased $32.5 million or 12.1 percent to $300.2 million.

• Net loans receivable increased $40.1 million or 19.0 percent to $250.8 million.

• Total deposits increased $8.8 million or 3.7 percent to $248.7 million.

• Book value per share increased $1.04 or 9.9 percent to $11.55.

• Total shareholders’ equity increased by $2.8 million or 11.0 percent to $28.6 million.

• Capital to assets ratio for the first quarter 2008 was 9.54 percent compared to 9.64 percent for the same period in 2007.

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)

	3/31/2008 (Unaudited)		12/31/2007 (Audited)			3/31/2007 (Unaudited)
Assets
Cash and cash equivalents	$	24,234	$	13,562		$	32,583
Interest-bearing deposits in other financial institutions		—		—			1,600
Investment securities available for sale		10,018		12,196			11,956
Federal Home Loan Bank, Federal Reserve Bank and Pacific Coast Bankers’ Bank restricted stock, at cost		1,890		1,890			1,573
Loans held for sale		636		123			1,420
Loans receivable, net		250,800		248,468			210,709
Furniture, fixtures and equipment		5,561		5,680			4,436
Income tax receivable		889		909			—
Deferred tax asset		1,420		1,430			1,706
Foreclosed assets		3,090		3,073			—
Other assets		1,640		1,825			1,690
Total Assets	$	300,178	$	289,156		$	267,673
Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	79,786	$	73,961		$	87,045
NOW accounts		13,346		14,223			13,102
Savings and money market		95,747		79,262			81,553
Time certificate of deposits		59,840		63,181			58,228
Total Deposits		248,719		230,627			239,928
Other borrowed funds		20,899		28,160
Other liabilities		1,911		1,795			1,938
Total Liabilities		271,529		260,582			241,866
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 shares issued and outstanding as of March 31, 2008 and December 31, 2007, and 2,338,627 shares issued and outstanding as of March 31, 2007		23,513		23,513			21,103
Additional paid-in capital		—		—			—
Accumulated other comprehensive income:
Unrealized gain (loss) on investment securities available-for-sale		8		(15	)		(93	)
Retained earnings		5,128		5,076			4,797
Total Stockholders’ Equity		28,649		28,574			25,807
Total Liabilities and Stockholders’ Equity	$	300,178	$	289,156		$	267,673

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CANYON BANCORP & SUBSIDIARY

Consolidated Statement of Operations

(Unaudited)

For the three months ended March 31, 2008 and 2007

(Dollars in thousands, except per share amounts)

	Three months ended March 31,
	2008			2007
Interest income:
Loans receivable	$	4,854		$	4,820
Federal funds sold		80			179
Interest bearing deposits in other financial institutions		—			17
Investment securities available for sale		132			141
Total interest income		5,066			5,157
Interest expense
Deposits		1,325			1,343
Other borrowed funds		289			—
Total interest expense		1,614			1,343
Net interest income		3,452			3,814
Provision for loan losses		1,160			90
Net interest income after provision for loan losses		2,292			3,724
Noninterest income:
Service charges and fees		193			166
Loan related fees		36			178
Lease administration fees		96			222
Automated teller machine fees		179			163
Net loss on sale of foreclosed assets		(19	)		—
Net gain on sale of investment securities		21			—
Total noninterest income		506			729
Noninterest expenses:
Salaries and employee benefits		1,358			1,429
Occupancy and equipment expense		395			372
Professional fees		53			70
Data processing		166			144
Marketing and advertising expense		135			115
Director and shareholder expense		146			112
Foreclosed asset expense, net		26			—
Other operating expense		447			409
Total noninterest expenses		2,726			2,651
Earnings before income taxes		72			1,802
Income tax expense		20			731
Net earnings	$	52		$	1,071
Earnings per share:
Basic	$	0.02		$	0.44
Diluted	$	0.02		$	0.42
Weighted average shares outstanding:
Basic		2,479,927			2,439,174
Diluted		2,536,790			2,543,346

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CANYON BANCORP & SUBSIDIARY

Selected Ratios

(Unaudited)

	Three Months Ended 1
	3/31/2008			3/31/2007
Return on average equity		0.72	%		17.24	%
Return on average assets		0.07	%		1.66	%
Yield on interest-earning assets		7.32	%		8.57	%
Cost of interest-bearing liabilities		3.39	%		3.73	%
Net interest margin		4.99	%		6.34	%
Non-interest income / average assets		0.68	%		1.13	%
Non-interest expense / average assets		3.65	%		4.11	%
Net non-interest expense / average assets		2.97	%		2.98	%
Net charge-offs/(recoveries) to average loans		0.85	%		0.28	%
	as of:
	3/31/2008			3/31/2007
Capital to assets ratio		9.54	%		9.64	%
Allowance for loan losses / gross loans		1.43	%		1.56	%
Loan to deposit ratio		102.7	%		87.8	%
Adversely classified loans to gross loans		7.2	%		1.0	%
Non-accrual loans to gross loans		2.6	%		0.8	%
Demand deposit accounts / total deposit accounts		32.1	%		36.3	%
Book value per share 2	$	11.55		$	10.51

¹ Interim periods annualized

² Prior year restated for past stock dividends and splits

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