CYBA Canyon Bancorp (CE)

Canyon Bancorp (OTCBB:CYBA) today announced record net income of $1,078,000 or $0.47 per diluted share for the third quarter ended September 30, 2006 � an increase of $138,000 or 14.7 percent compared to income of $940,00 or $0.44 per diluted share for the third quarter of 2005. For the nine months ended September 30, 2006, Canyon Bancorp earned $3,087,000 or $1.34 per diluted share compared to $2,612,000 or $1.14 per diluted share for the same period of 2005, an increase of $475,000 or 18.2 percent. Annualized return on average shareholders� equity for the third quarter of 2006 was 19.10 percent, with an annualized return on average assets of 1.69 percent. Other financial highlights for the third quarter 2006 compared to the same period in 2005: Total assets increased $15.9 million or 6.8 percent to $248.0 million. Net loans increased $39.3 million or 24.5 percent to $199.7 million. Total deposits increased $11.0 million or 5.2 percent to $223.3 million. Total shareholders� equity increased by $4.5 million or 24.7 percent to $23.0 million. Net interest margin for the third quarter 2006 was 6.44 percent compared to 6.09 percent for the same period in 2005. �The above financial highlights for the third quarter 2006 confirm that Canyon Bancorp continues to attain stellar financial results with steady growth combined with strong performance,� said President and CEO Stephen G. Hoffmann. 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. CANYON BANCORP & SUBSIDIARY Consolidated Balance Sheets (Dollars in thousands, except per share amounts) � � 9/30/2006 (Unaudited) 12/31/2005 (Audited) 9/30/05 (Unaudited) Assets � Cash and cash equivalents $13,212� $27,576� $33,327� Interest-bearing deposits in other financial institutions 3,000� 3,400� 3,500� Investment securities available for sale 22,617� 24,702� 26,858� Federal Home Loan Bank and Federal Reserve Bank and Pacific Coast Bankers' Bank restricted stock, at cost 1,540� 1,412� 1,261� Loans held for sale �� 782� �� Loans receivable, net 199,747� 171,833� 160,496� Furniture, fixtures and equipment 4,593� 4,444� 4,397� Income tax receivable �� 69� 225� Deferred tax asset 1,632� 1,384� 941� Other assets 1,699� 3,638� 1,175� � Total Assets $248,040� $239,240� $232,180� � Liabilities and Stockholders� Equity � Deposits: Demand deposits $82,909� $85,142� $84,356� NOW accounts 7,940� 8,271� 11,528� Savings and money market 78,266� 89,642� 88,909� Time certificate of deposits 54,233� 35,471� 27,588� � Total Deposits 223,348� 218,526� 212,381� � Other Liabilities 1,729� 1,263� 1,378� � Total Liabilities 225,077� 219,789� 213,759� � 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; 2,191,885, 2,160,655 and 2,054,565 shares issued and outstanding as of September 30, 2006, December 31, 2005, and September 30, 2005, respectively1 � � 17,621� 5,402� 5,136� Additional paid-in capital �� 11,888� 9,424� Accumulated other comprehensive income unrealized (loss) on investment securities available-for-sale (140) (234) (182) Retained earnings 5,482� 2,395� 4,043� � Total Stockholders� Equity 22,963� 19,451� 18,421� � � � � � Total Liabilities and Stockholders� Equity $248,040� $239,240� $232,180� � 1 On June 30, 2006 Canyon National Bank's Plan of Reorganization was consummated to form a bank holding company, Canyon Bancorp. On the date of consummation, 2,180,479 shares of Canyon National Bank, $2.50 par value, were exchanged for the same number of shares of Canyon Bancorp, no par value. Shares outstanding prior to June 30, 2006 were issued by Canyon National Bank. CANYON BANCORP & SUBSIDIARY Consolidated Statement of Operations (Unaudited) For the three and nine months ended September 30, 2006 and 2005 (Dollars in thousands, except per share amounts) � Three months ended Nine months ended September 30, September 30, 2006� 2005� 2006� 2005� Interest income: Loans receivable $ 4,528� $ 3,347� $ 12,508� $ 9,369� Federal funds sold 164� 126� 646� 298� Interest bearing deposits in other financial institutions 31� 29� 119� 57� Investment securities available for sale 239� 228� 714� 699� Total Interest Income 4,962� 3,730� 13,987� 10,423� � Interest expense on deposits and other borrowings 1,134� 534� 2,875� 1,335� � Net Interest Income 3,828� 3,196� 11,112� 9,088� � Provision for loan losses 100� 150� 425� 450� � Net Interest Income After Provision for Loan Losses 3,728� 3,046� 10,687� 8,638� Noninterest income: Service charges and fees 144� 124� 423� 381� Loan related fees 130� 135� 431� 345� Lease administration fees 299� 268� 974� 871� Automated teller machine fees 149� 135� 448� 453� Net gain (loss) on disposition of fixed assets �� �� (3) (5) Total Noninterest Income 722� 662� 2,273� 2,045� � Noninterest expenses: Salaries and employee benefits 1,373� 1,130� 4,075� 3,270� Occupancy and equipment expense 392� 313� 1,087� 952� Professional fees 102� 67� 268� 223� Data processing 138� 106� 401� 334� Marketing and advertising expense 99� 87� 320� 261� Director and shareholder expense 112� 75� 364� 263� Other operating expense 396� 333� 1,218� 945� Total Noninterest Expenses 2,612� � 2,111� � 7,733� � 6,248� � Earnings before income taxes 1,838� 1,597� 5,227� 4,435� � Income Tax Expense 760� 657� 2,140� 1,823� � Net earnings $ 1,078� $ 940� $ 3,087� $ 2,612� � Earnings Per Share: Basic $ 0.49� $ 0.44� $ 1.42� $ 1.23� Diluted $ 0.47� $ 0.44� $ 1.34� $ 1.14� � Weighted Average Shares Outstanding: Basic 2,184,944� 2,149,249� 2,175,842� 2,130,762� Diluted 2,295,595� 2,169,031� 2,297,835� 2,279,366� CANYON BANCORP & SUBSIDIARY Selected Ratios Unaudited � Three Months Ended 1 Nine Months Ended 1 9/30/2006� 9/30/2005� 9/30/2006� 9/30/2005� � Return on average equity 19.10% 20.71% 19.42% 20.63% Return on average assets 1.69% 1.65% 1.66% 1.57% Yield on interest earning-assets 8.35% 7.11% 8.12% 6.85% Cost of interest-bearing liabilities 3.26% 1.74% 2.85% 1.49% Net interest margin 6.44% 6.09% 6.45% 5.97% Non-interest income / average assets 1.13% 1.16% 1.22% 1.23% Non-interest expense / average assets 4.10% 3.70% 4.16% 3.76% Net non-interest expense / average assets 2.97% 2.54% 2.94% 2.53% Net charge-offs/(recoveries) to average loans 0.01% -0.02% 0.00% 0.02% � as of: 9/30/2006� 12/31/2005� 9/30/2005� � Capital to assets ratio 9.26% 8.13% 7.93% Allowance for loan losses / gross loans 1.65% 1.67% 1.78% Loan to deposit ratio 89.4% 78.6% 75.6% Adversely classified loans to gross loans 2.0% 1.2% 1.2% Demand deposit accounts / total deposit accounts 37.1% 39.0% 39.7% Book value per share2 $ 10.48� $ 9.00� $ 8.54� � 1Interim periods annualized 2Restated for past stock dividends and splits Canyon Bancorp (OTCBB:CYBA) today announced record net income of $1,078,000 or $0.47 per diluted share for the third quarter ended September 30, 2006 - an increase of $138,000 or 14.7 percent compared to income of $940,00 or $0.44 per diluted share for the third quarter of 2005. For the nine months ended September 30, 2006, Canyon Bancorp earned $3,087,000 or $1.34 per diluted share compared to $2,612,000 or $1.14 per diluted share for the same period of 2005, an increase of $475,000 or 18.2 percent. Annualized return on average shareholders' equity for the third quarter of 2006 was 19.10 percent, with an annualized return on average assets of 1.69 percent. Other financial highlights for the third quarter 2006 compared to the same period in 2005: -- Total assets increased $15.9 million or 6.8 percent to $248.0 million. -- Net loans increased $39.3 million or 24.5 percent to $199.7 million. -- Total deposits increased $11.0 million or 5.2 percent to $223.3 million. -- Total shareholders' equity increased by $4.5 million or 24.7 percent to $23.0 million. -- Net interest margin for the third quarter 2006 was 6.44 percent compared to 6.09 percent for the same period in 2005. "The above financial highlights for the third quarter 2006 confirm that Canyon Bancorp continues to attain stellar financial results with steady growth combined with strong performance," said President and CEO Stephen G. Hoffmann. 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. -0- *T CANYON BANCORP & SUBSIDIARY Consolidated Balance Sheets (Dollars in thousands, except per share amounts) 9/30/2006 12/31/2005 9/30/05 (Unaudited) (Audited) (Unaudited) ------------ ---------- ------------ Assets Cash and cash equivalents $13,212 $27,576 $33,327 Interest-bearing deposits in other financial institutions 3,000 3,400 3,500 Investment securities available for sale 22,617 24,702 26,858 Federal Home Loan Bank and Federal Reserve Bank and Pacific Coast Bankers' Bank restricted stock, at cost 1,540 1,412 1,261 Loans held for sale -- 782 -- Loans receivable, net 199,747 171,833 160,496 Furniture, fixtures and equipment 4,593 4,444 4,397 Income tax receivable -- 69 225 Deferred tax asset 1,632 1,384 941 Other assets 1,699 3,638 1,175 ------------ ---------- ------------ Total Assets $248,040 $239,240 $232,180 ============ ========== ============ Liabilities and Stockholders' Equity Deposits: Demand deposits $82,909 $85,142 $84,356 NOW accounts 7,940 8,271 11,528 Savings and money market 78,266 89,642 88,909 Time certificate of deposits 54,233 35,471 27,588 ------------ ---------- ------------ Total Deposits 223,348 218,526 212,381 ------------ ---------- ------------ Other Liabilities 1,729 1,263 1,378 ------------ ---------- ------------ Total Liabilities 225,077 219,789 213,759 ------------ ---------- ------------ 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; 2,191,885, 2,160,655 and 2,054,565 shares issued and outstanding as of September 30, 2006, December 31, 2005, and September 30, 2005, respectively(1) 17,621 5,402 5,136 Additional paid-in capital -- 11,888 9,424 Accumulated other comprehensive income unrealized (loss) on investment securities available-for-sale (140) (234) (182) Retained earnings 5,482 2,395 4,043 ------------ ---------- ------------ Total Stockholders' Equity 22,963 19,451 18,421 ------------ ---------- ------------ Total Liabilities and Stockholders' Equity $248,040 $239,240 $232,180 ============ ========== ============ (1) On June 30, 2006 Canyon National Bank's Plan of Reorganization was consummated to form a bank holding company, Canyon Bancorp. On the date of consummation, 2,180,479 shares of Canyon National Bank, $2.50 par value, were exchanged for the same number of shares of Canyon Bancorp, no par value. Shares outstanding prior to June 30, 2006 were issued by Canyon National Bank. *T -0- *T CANYON BANCORP & SUBSIDIARY Consolidated Statement of Operations (Unaudited) For the three and nine months ended September 30, 2006 and 2005 (Dollars in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, --------------------- --------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Interest income: Loans receivable $ 4,528 $ 3,347 $ 12,508 $ 9,369 Federal funds sold 164 126 646 298 Interest bearing deposits in other financial institutions 31 29 119 57 Investment securities available for sale 239 228 714 699 ---------- ---------- ---------- ---------- Total Interest Income 4,962 3,730 13,987 10,423 Interest expense on deposits and other borrowings 1,134 534 2,875 1,335 ---------- ---------- ---------- ---------- Net Interest Income 3,828 3,196 11,112 9,088 Provision for loan losses 100 150 425 450 ---------- ---------- ---------- ---------- Net Interest Income After Provision for Loan Losses 3,728 3,046 10,687 8,638 ---------- ---------- ---------- ---------- Noninterest income: Service charges and fees 144 124 423 381 Loan related fees 130 135 431 345 Lease administration fees 299 268 974 871 Automated teller machine fees 149 135 448 453 Net gain (loss) on disposition of fixed assets -- -- (3) (5) ---------- ---------- ---------- ---------- Total Noninterest Income 722 662 2,273 2,045 ---------- ---------- ---------- ---------- Noninterest expenses: Salaries and employee benefits 1,373 1,130 4,075 3,270 Occupancy and equipment expense 392 313 1,087 952 Professional fees 102 67 268 223 Data processing 138 106 401 334 Marketing and advertising expense 99 87 320 261 Director and shareholder expense 112 75 364 263 Other operating expense 396 333 1,218 945 ---------- ---------- ---------- ---------- Total Noninterest Expenses 2,612 2,111 7,733 6,248 ---------------------- --------------------- Earnings before income taxes 1,838 1,597 5,227 4,435 Income Tax Expense 760 657 2,140 1,823 ---------- ---------- ---------- ---------- Net earnings $ 1,078 $ 940 $ 3,087 $ 2,612 ========== ========== ========== ========== Earnings Per Share: Basic $ 0.49 $ 0.44 $ 1.42 $ 1.23 Diluted $ 0.47 $ 0.44 $ 1.34 $ 1.14 ========== ========== ========== ========== Weighted Average Shares Outstanding: Basic 2,184,944 2,149,249 2,175,842 2,130,762 Diluted 2,295,595 2,169,031 2,297,835 2,279,366 ========== ========== ========== ========== *T -0- *T CANYON BANCORP & SUBSIDIARY Selected Ratios Unaudited Three Months Ended (1) Nine Months Ended (1) ---------------------- --------------------- 9/30/2006 9/30/2005 9/30/2006 9/30/2005 ---------- ----------- ---------- ---------- Return on average equity 19.10% 20.71% 19.42% 20.63% Return on average assets 1.69% 1.65% 1.66% 1.57% Yield on interest earning-assets 8.35% 7.11% 8.12% 6.85% Cost of interest-bearing liabilities 3.26% 1.74% 2.85% 1.49% Net interest margin 6.44% 6.09% 6.45% 5.97% Non-interest income / average assets 1.13% 1.16% 1.22% 1.23% Non-interest expense / average assets 4.10% 3.70% 4.16% 3.76% Net non-interest expense / average assets 2.97% 2.54% 2.94% 2.53% Net charge- offs/(recoveries) to average loans 0.01% -0.02% 0.00% 0.02% as of: --------------------------------- 9/30/2006 12/31/2005 9/30/2005 ---------- ----------- ---------- Capital to assets ratio 9.26% 8.13% 7.93% Allowance for loan losses / gross loans 1.65% 1.67% 1.78% Loan to deposit ratio 89.4% 78.6% 75.6% Adversely classified loans to gross loans 2.0% 1.2% 1.2% Demand deposit accounts / total deposit accounts 37.1% 39.0% 39.7% Book value per share(2) $10.48 $9.00 $8.54 (1)Interim periods annualized (2)Restated for past stock dividends and splits *T