Exhibit 99
| November 16, 2006 | For Further Information |
| | Kenn Ulrich, APR |
| | (760) 510-3903 |
Discovery Bancorp Earns $0.76 Per Share
on Net Profit of $1.4 Million September YTD
(San Marcos, Calif.) Net earnings for Discovery Bancorp (OTCBB:DVBC) through the first three quarters of 2006 are $1.4 million, or $0.76 per share ($0.73 per share fully diluted), compared to $223,000, or $0.20 per share ($0.19 per share fully diluted) for the same period of 2005.
Figures for 2006 include the addition of Celtic Capital Corporation, a commercial finance company acquired on Aug. 31, 2005. Figures for 2005 include one month’s operations of Celtic Capital.
The holding company’s total assets grew to a record high of $194.4 million at Sept. 30 this year, an increase of 22 percent from $160.0 million one year earlier. During the same period net loans climbed 22 percent to $154.4 million from $126.7 million, and total deposits rose 23 percent to $134.1 million from $109.2 million.
In tracking 2006’s growth since Dec. 31, 2005, total assets have increased 18 percent from $164.7 million, net loans have risen 15 percent from $134.3 million, and total deposits are up by 19 percent from $112.6 million.
“Our numbers for the first nine months of the year reflect the favorable significance of bringing Celtic Capital into the Discovery Bancorp family,” said James P. Kelley, president and chief executive officer. “We’re getting a clearer picture of just how good of a fit Celtic Capital has turned out to be.”
Interest income, fueled by strong loan growth for Discovery Bank and Celtic Capital, the company’s principal operating subsidiaries, grew to $12.5 million for September 2006 YTD, or 95 percent higher than $6.4 million for September 2005 YTD.
Interest expense for the three quarters of 2006 is $4.5 million, a 114 percent increase from the same point in 2005. Net interest income rose 86 percent to $8.0 million through September 30, 2006, from $4.3 million for the same period last year.
Non-interest income is $844,000 through Sept. 30, 2006, an increase of 54 percent from $549,000 for the same period in 2005. Kelley said that in addition to growth in loan fees and charges, $235,000 of which can be attributed to the acquisition of Celtic Capital and the benefit from nine months of activity, 2006 includes a gain of 73 percent in income from the sale of SBA loans.
Non-interest expenses totaled $6.0 million for the nine months of 2006, a 56 percent increase from $3.8 million for the nine months of 2005. Included in 2006 is a full nine months of operating expense for Celtic Capital.
The provision for loan losses at Sept. 30, 2006, is $336,000, compared with $633,000 for the same period in 2005. The higher provision is due to the booking of $234,000 of reserves associated with the acquisition of Celtic Capital’s loan portfolio in August 2005.
Pretax income for the nine months of 2006 is $2.5 million, or 546 percent more than $385,000 for September 2005 YTD. The company’s tax expense is $1.1 million at Sept. 30, 2006, compared to $162,000 at the same point in 2005.
Discovery Bancorp is a bank holding company serving the financial needs of small to medium-sized businesses, professionals and individuals through two principal subsidiaries - Discovery Bank and Celtic Capital Corp. The bank has offices in San Marcos and Poway, Calif., and Celtic Capital’s offices are in Santa Monica, Calif., Phoenix, and Bellevue, Wash.
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| | | Company | | Company | | Company |
| | As of | | As of | | As of |
| | 9/30/2006 | | 9/30/2005 | | 12/31/2005 |
| ASSETS | | | | | | | | | |
| Cash & Cash Equivalents | | | 21,271 | | | 17,155 | | | 14,854 |
| Investments | | | 8,654 | | | 6,499 | | | 6,008 |
| Loans, Net | | | 154,437 | | | 126,684 | | | 134,326 |
| Other Assets | | | 10,025 | | | 9,374 | | | 9,518 |
| TOTAL ASSETS | | | 194,387 | | | 159,712 | | | 164,706 |
| LIABILITIES | | | | | | | | | |
| Total Deposits | | | 134,064 | | | 109,216 | | | 112,585 |
| Borrowings Under line of Credit | | | 15,509 | | | 14,977 | | | 16,086 |
| FHLB Advances | | | 19,065 | | | 12,000 | | | 12,000 |
| Other Liabilities | | | 1,260 | | | 1,048 | | | 1,192 |
| STOCKHOLDER'S EQUITY | | | 24,489 | | | 22,471 | | | 22,843 |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | | | 194,387 | | | 159,712 | | | 164,706 |
| | | | | | | | | | |
| | | | | | | | | | |
| | Company | | Company | | Company |
| | Sep-06 | | Sep-05 | | Dec-05 |
| | YTD | | YTD | | YTD |
| STATEMENT OF OPERATIONS | | | | | | | | | |
| Interest Income | | | 12,464 | | | 6,376 | | | 9,950 |
| Interest Expense | | | 4,492 | | | 2,060 | | | 3,132 |
| NET INTEREST INCOME | | | 7,972 | | | 4,316 | | | 6,818 |
| PROVISION FOR LOAN LOSSES | | | 336 | | | 633 | | | 786 |
| Net interest Profit After Provision for Loan Losses | | | 7,636 | | | 3,683 | | | 6,032 |
| Non-Interest Income | | | 844 | | | 549 | | | 921 |
| Non-Interest Expense | | | 5,992 | | | 3,847 | | | 5,998 |
| PRE TAX INCOME | | | 2,488 | | | 385 | | | 955 |
| Taxes | | | 1,070 | | | 162 | | | 402 |
| Net Profit | | | 1,418 | | | 223 | | | 553 |
| Profit Per Share | | | 0.76 | | | 0.20 | | | 0.42 |
| Diluted Profit Per Share | | | 0.73 | | | 0.19 | | | 0.40 |
Forward-Looking Statements - Statements in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs on future developments and their potential effects on the bank. There is no assurance that future developments affecting the bank will be those anticipated by management. Forward-looking statements involve risks and uncertainties, and actual results may differ from those projected in the forward-looking statements due to credit, market, operational, liquidity, interest rate and other risks.
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