CHOB Charter Oak Bank (CE)

Charter Oak Bank (OTCBB: CHOB), headquartered in Napa, California, reported a net income before tax of $186,000 for the 3rd quarter of 2008. Year-to-date, Charter Oak Bank's net income before tax was $548,000, an increase of $603,000 over the same period in 2007. In addition, the Bank eliminated its deferred tax asset valuation during the quarter, resulting in a one-time book tax credit and gain to net equity of $808,000.

Charter Oak Bank also reported $116.7 million in loans as of September 30 -- an increase of $35.3 million, or 43%, in the last twelve months. The loan quality of the Bank continues to be very strong. As of September 30, 2008, the Bank had no significant past due loans or any loans on non-accrual. In addition, the Bank has not charged off any loans during 2008.

Total assets were $131.3 million as of September 30, 2008, an increase of $37.7 million in the past twelve months. Deposits totaled $103.8 million at third quarter end 2008, representing an increase of $29 million from third quarter end 2007. Charter Oak Bank capital ratios exceed regulatory standards for a "well capitalized" bank, by regulatory definition.

"As this strong financial performance demonstrates, Charter Oak Bank is 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."

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