Canyon Bancorp Raises Capital

  
    
  
  
    
      Canyon Bancorp (OTCBB: CYBA) announced that on October 28 the Company 
      raised $3.93 million through the sale of 413,691 shares in a private 
      placement of its common stock at a purchase price of $9.50 per share to 
      directors, executive officers and its principal shareholder, the Agua 
      Caliente Band of Cahuilla Indians.
    
    
      The additional capital raises stockholders’ 
      equity to exceed $31 million and further strengthens the bank’s 
      “Well-Capitalized” 
      position. As of September 30, 2008, the Company’s 
      capital to assets ratio was 9.30 percent. On a pro-forma basis including 
      the new funds, the capital to assets ratio exceeds 10.0 percent.
    
    
      The Agua Caliente Band of Cahuilla Indians’ 
      equity investment increases to nearly 48% of outstanding stock in Canyon 
      Bancorp, the single-subsidiary holding company of Canyon National Bank. 
      In September, Canyon National Bank was recognized as the nation’s 
      largest national bank with a tribal investment.
    
    
      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.