EXHIBIT 99.1

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

CANYON BANCORP REPORTS ANNUAL RESULTS

PALM SPRINGS, CA: February 20, 2009 – Canyon Bancorp (OTCBB: CYBA) today announced total assets at December 31, 2008 were $298.0 million and net loans receivable were $251.6 million. Canyon Bancorp incurred a loss of $3,377,000 or $1.32 per diluted share for the full year ended December 31, 2008 compared to income of $3,519,000 or $1.39 per diluted share for the year ended December 31, 2007. For the three months ended December 31, 2008, Canyon Bancorp incurred a loss of $2,239,000 or $0.80 per diluted share compared to earning $421,000 or $0.17 per diluted share for the same period in 2007.

Like many Southern California banks, the Company’s earnings were adversely affected by the deterioration in the real estate market. Classified loans and loan charge-offs have increased. As a result, the Company increased the provision for loan losses from $900,000 in the fourth quarter of 2007 to $3,350,000 in the fourth quarter of 2008.

Other financial highlights as of year-end 2008 compared to year-end 2007:

• Total assets increased $8.9 million or 3.1 percent to $298.0 million.

• Net loans receivable increased $3.1 million or 1.3 percent to $251.6 million.

• Total deposits increased $18.7 million or 8.1 percent to $249.3 million.

• Capital to assets ratio for the year ended December 31, 2008 was 9.81 percent compared to 9.88 percent for the same period in 2007.

President and CEO Stephen G. Hoffmann said, “Canyon Bancorp and Canyon National Bank maintain a “Well-Capitalized” regulatory ratings and are financially strong. To supplement our capital base, during the fourth quarter we are pleased with the successful private placement of $3.9 million of common stock in a private placement. We have responded aggressively to changes in the economy and real estate markets to mitigate risk.”

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 Palm Desert. 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)

	12/31/2008 (Unaudited)			12/31/2007 (Audited)
Assets
Cash and cash equivalents	$	16,389		$	13,562
Investment securities available for sale		11,846			12,196
Federal Home Loan Bank, Federal Reserve Bank
and Pacific Coast Bankers' Bank restricted stock, at cost		1,887			1,890
Loans held for sale		190			123
Loans receivable, net		251,614			248,468
Furniture, fixtures and equipment		5,221			5,680
Income tax receivable		2,345			909
Deferred tax asset		2,571			1,430
Foreclosed assets		4,483			3,073
Other assets		1,448			1,825
Total Assets	$	297,994		$	289,156
Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	61,046		$	73,961
NOW accounts		10,581			14,223
Savings and money market		72,280			79,262
Time certificate of deposits		105,399			63,181
Total Deposits		249,306			230,627
Other borrowed funds		17,212			28,160
Other liabilities		2,245			1,795
Total Liabilities		268,763			260,582
Commitments and contingencies		—			—
Stockholders’ Equity:
Serial Preferred Stock, $5.00 par value; authorized 10,000,000 shares; none issued or outstanding		—			—
Common Stock; no par value; authorized 10,000,000 shares; 2,911,051 and 2,479,927 shares issued and outstanding as of December 31, 2008 and 2007, respectively		27,568			23,513
Accumulated other comprehensive income: Unrealized loss on investment securities available-for-sale		(36	)		(15	)
Retained earnings		1,699			5,076
Total Stockholders’ Equity		29,231			28,574
Total Liabilities and Stockholders’ Equity	$	297,994		$	289,156

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CANYON BANCORP & SUBSIDIARY

Consolidated Statement of Operations

(Unaudited)

For the three and twelve months ended December 31, 2008 and 2007

(Dollars in thousands, except per share amounts)

	Three months ended December 31,					Twelve months ended December 31,
	2008			2007		2008			2007
Interest income:
Loans receivable	$	3,863		$	5,145	$	17,469		$	20,034
Federal funds sold		—			45		134			522
Interest bearing deposits in other financial institutions		—			1		—			50
Investment securities available for sale		146			190		520			679
Total interest income		4,009			5,381		18,123			21,285
Interest expense
Deposits		1,234			1,517		4,748			5,883
Other borrowed funds		189			249		844			319
Total interest expense		1,423			1,766		5,592			6,202
Net interest income		2,586			3,615		12,531			15,083
Provision for loan losses		3,350			900		8,615			1,310
Net interest income after provision for loan losses		(764	)		2,715		3,916			13,773
Noninterest income:
Service charges and fees		276			199		925			712
Loan related fees		49			77		247			464
Lease administration fees		97			122		399			661
Automated teller machine fees		177			179		745			699
Net loss on sale of foreclosed assets		(2	)		—		(33	)		—
Net gain on sale of investment securities		—			—		33			—
Total noninterest income		597			577		2,316			2,536
Noninterest expenses:
Salaries and employee benefits		1,364			1,311		5,415			5,282
Occupancy and equipment expense		384			403		1,570			1,510
Professional fees		80			96		262			373
Data processing		217			153		719			583
Marketing and advertising expense		54			109		349			436
Director and shareholder expense		110			127		481			516
Foreclosed asset expense, net		909			14		1,535			14
Other operating expense		500			377		1,784			1,680
Total noninterest expenses		3,618			2,590		12,115			10,394
Earnings/(loss) before income taxes		(3,785	)		702		(5,883	)		5,915
Income tax expense/(benefit)		(1,546	)		281		(2,506	)		2,396
Net earnings/(loss)	$	(2,239	)	$	421	$	(3,377	)	$	3,519
Earnings/(Loss) per share:
Basic	$	(0.80	)	$	0.17	$	(1.32	)	$	1.43
Diluted	$	(0.80	)	$	0.17	$	(1.32	)	$	1.39
Weighted average shares outstanding:
Basic		2,785,145			2,464,383		2,562,110			2,454,792
Diluted		2,785,145			2,534,926		2,562,110			2,538,636

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CANYON BANCORP & SUBSIDIARY

Selected Ratios

(Unaudited)

	Three Months Ended 1						Twelve Months Ended 1
	12/31/2008			12/31/2007			12/31/2008		12/31/2007
Return on average equity		-30.24	%		5.86	%	-11.66	%	13.05	%
Return on average assets		-2.98	%		0.59	%	-1.14	%	1.31	%
Yield on interest-earning assets		5.93	%		8.15	%	6.75	%	8.52	%
Cost of interest-bearing liabilities		2.81	%		3.94	%	2.90	%	3.86	%
Net interest margin		3.83	%		5.47	%	4.67	%	6.04	%
Non-interest income / average assets		0.79	%		0.79	%	0.78	%	0.94	%
Non-interest expense / average assets		4.81	%		3.62	%	4.09	%	3.85	%
Net non-interest expense / average assets		4.02	%		2.83	%	3.31	%	2.91	%
Net charge-offs/(recoveries) to average loans		3.39	%		2.10	%	2.82	%	0.74	%
	as of:
	12/31/2008			12/31/2007
Capital to assets ratio		9.81	%		9.88	%
Allowance for loan losses / gross loans		1.74	%		1.21	%
Loan to deposit ratio		103.0	%		109.5	%
Adversely classified loans to gross loans		7.6	%		0.9	%
Non-accrual loans to gross loans		7.7	%		0.4	%
Demand deposit accounts / total deposit accounts		24.5	%		32.1	%
Book value per share 2	$	10.04		$	11.52

¹ Interim periods annualized

² Prior year restated for past stock dividends and splits

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