CYBA Canyon Bancorp (CE)

Canyon Bancorp (OTCBB:CYBA) today announced net income of $1,071,000 or $0.44 per diluted share for the first quarter ended March 31, 2007 � an increase of $125,000 or 13.2 percent compared to income of $946,000 or $0.39 per diluted share for the first quarter of 2006. Annualized return on average shareholders� equity for the first quarter 2007 was 17.24 percent, with a return on average assets of 1.66 percent. Other financial highlights for the first quarter 2007 compared to the same period in 2006: Total assets increased $26.7 million or 11.1 percent to $267.7 million. Net loans increased $41.0 million or 24.2 percent to $210.7 million. Total deposits increased $21.4 million or 9.8 percent to $239.9 million. Capital to assets ratio increased to 9.64 percent from 8.50 percent. Book value per share increased $2.04 or 22.7 percent to $11.04. Total shareholders� equity increased by $5.3 million or 26.0 percent to $25.8 million. Net interest margin for the first quarter 2007 was 6.34 percent compared to 6.40 percent for the same period in 2006. "The above financial highlights for the first quarter 2007 confirm that Canyon Bancorp continues to attain steady growth combined with strong financial 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) � � 3/31/2007 (Unaudited) 12/31/2006 (Audited) 3/31/2006 (Unaudited) Assets � Cash and cash equivalents $ 32,583� $ 20,569� $ 34,616� Interest-bearing deposits in other financial institutions 1,600� 2,000� 3,400� Investment securities available for sale 11,956� 14,250� 24,008� Federal Home Loan Bank and Federal Reserve Bank and Pacific Coast Bankers' Bank restricted stock, at cost 1,573� 1,558� 1,423� Loans held for sale 1,420� 752� 309� Loans receivable, net 210,709� 202,881� 169,665� Furniture, fixtures and equipment 4,436� 4,548� 4,549� Income tax receivable �� 276� �� Deferred tax asset 1,706� 1,713� 1,385� Other assets 1,690� 3,821� 1,601� � Total Assets $ 267,673� $ 252,368� $ 240,956� � Liabilities and Stockholders� Equity � Deposits: Demand deposits $ 87,045� $ 90,248� $ 88,080� NOW accounts 13,102� 9,645� 9,024� Savings and money market 81,553� 67,770� 77,441� Time certificate of deposits 58,228� 58,767� 43,983� � Total Deposits 239,928� 226,430� 218,528� � Other Liabilities 1,938� 1,515� 1,952� � Total Liabilities 241,866� 227,945� 220,480� � 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; 2,338,627, 2,316,627 and 2,167,229 shares issued and outstanding as of March 31, 2007, December 31, 2006 and March 31, 2006, respectively 1 � � 21,103� 20,803� 5,418� Additional paid-in capital �� �� 11,951� Accumulated other comprehensive income unrealized (loss) on investment securities available-for-sale (93) (106) (234) Retained earnings 4,797� 3,726� 3,341� � Total Stockholders� Equity 25,807� 24,423� 20,476� � Total Liabilities and Stockholders� Equity $ 267,673� $ 252,368� $ 240,956� � 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 months ended March 31, 2007 and 2006 (Dollars in thousands, except per share amounts) � Three months ended March 31, 2007� 2006� Interest income: Loans receivable $ 4,820� $ 3,866� Federal funds sold 179� 180� Interest-bearing deposits in other financial institutions 17� 38� Investment securities available for sale 141� 234� Total Interest Income 5,157� 4,318� � Interest expense on deposits and other borrowings 1,343� 803� � Net Interest Income 3,814� 3,515� � Provision for loan losses 90� 225� � Net Interest Income After Provision for Loan Losses 3,724� 3,290� Noninterest income: Service charges and fees 166� 136� Loan-related fees 178� 166� Lease administration fees 222� 310� Automated teller machine fees 163� 145� Total Noninterest Income 729� 757� � Noninterest expenses: Salaries and employee benefits 1,429� 1,315� Occupancy and equipment expense 372� 328� Professional fees 70� 93� Data processing 144� 124� Marketing and advertising expense 115� 104� Director and shareholder expense 112� 110� Other operating expense 409� 377� Total Noninterest Expenses 2,651� � 2,451� � Earnings before income taxes 1,802� 1,596� � Income Tax Expense 731� 650� � Net earnings $ 1,071� $ 946� � Earnings Per Share: Basic $ 0.46� $ 0.42� Diluted $ 0.44� $ 0.39� � Weighted Average Shares Outstanding: Basic 2,323,023� 2,271,542� Diluted 2,422,504� 2,401,437� CANYON BANCORP & SUBSIDIARY Selected Ratios (Unaudited) � Three Months Ended1 3/31/2007� 3/31/2006� � Return on average equity 17.24% 19.06% Return on average assets 1.66% 1.59% Yield on interest earning-assets 8.57% 7.87% Cost of interest-bearing liabilities 3.73% 2.49% Net interest margin 6.34% 6.40% Noninterest income / average assets 1.13% 1.27% Noninterest expense / average assets 4.11% 4.11% Net noninterest expense / average assets 2.98% 2.84% Net charge-offs/(recoveries) to average loans 0.28% -0.06% � as of: 3/31/2007� 3/31/2006� � Capital to assets ratio 9.64% 8.50% Allowance for loan losses / gross loans 1.56% 1.84% Loan to deposit ratio 87.8% 77.6% Adversely classified loans to gross loans 1.0% 2.1% Demand deposit accounts / total deposit accounts 36.3% 40.3% Book value per share 2 $ 11.04� $ 9.00� � 1 Interim periods annualized � 2 Prior year restated for past stock dividends and splits