CHOB Charter Oak Bank (CE)

Charter Oak Bank (OTCBB: CHOB), headquartered in Napa, California, reported net income before-tax for the year 2008 of $87,000. That was an increase of $41,000 from 2007. After an adjustment of $1,086,000 for the elimination of deferred tax asset valuation, the Bank's 2008 net income after-tax was $1,174,000. Due to an additional loan loss provision during December, the Bank recorded a fourth-quarter net loss before-tax of $461,000.

Charter Oak Bank also reported $124 million in loans as of December 31st -- an increase of $33 million, or 36%, in the last twelve months. The loan quality of the Bank continues to be very strong. As of December 31, 2008, the Bank had no significant past due loans with only one loan on non-accrual.

Total assets were $137 million as of December 31, 2008, an increase of $30 million in the past twelve months. Deposits totaled $107 million at year-end 2008, representing an increase of $19 million, or 21%, in the last twelve months. Charter Oak Bank capital ratios exceed regulatory standards for a 'well capitalized" bank, by regulatory definition.

"Our continued growth, strong interest margin, tight expense control, and vigilant credit management had a major positive impact on results, and positioned the bank well for 2009. In light of the current economy and credit markets, the bank increased its loan loss reserves to about 1.50% of total loans. We will continue to position ourselves with strong reserves for any unforeseen circumstances in the year ahead to ensure Charter Oak Bank continues to be a very safe and sound bank," stated Brian Kelly, President & CEO. "We have never participated in the risky practices demonstrated by other financial institutions. Rather our focus is lending to businesses and individuals in the Napa Valley, and as a result, we remain solid. As many banks are struggling to survive, Charter Oak Bank continues to strive toward its goal of becoming the superior performing bank in the Napa Valley. Our increase in loans and deposits, despite this current economy, exhibits our commitment to serve our customers and work to meet their needs."

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 are pre-fiscal year-end audit and 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.

Contact: Brian Kelly Email Contact Phone: 707-265-2001 Tom Fuller Fuller & Sander Communications, LLC Email Contact www.fullerandsander.com 707-253-0868 707-486-8968 cell 707-253-0959 facsimile