Exhibit 99.1
CORRECTING and REPLACING Temecula Valley Bancorp Inc. Announces Asset
Growth, Increased Earnings
TEMECULA, Calif.--(BUSINESS WIRE)--Oct. 29, 2004--In BW5006 issued
Oct. 16, 2004: Please replace the release dated Oct. 16, 2004, with
the following corrected version.
The corrected release reads:
TEMECULA VALLEY BANCORP INC. ANNOUNCES ASSET GROWTH, INCREASED
EARNINGS
Temecula Valley Bancorp Inc. (OTCBB:TMCV) has added an
additional $300,000 to its reserve for loan losses as of September 30,
2004. "Upon further analysis, we decided to set aside an additional
amount in the reserve for the third quarter due to strong loan
growth," said Stephen H. Wacknitz. "Loan delinquency and problem
assets continue to be very low, and the quality of our loan portfolio
remains strong. We tend to be conservative bankers," he added, "and
this move just illustrates our philosophy. We continue to monitor the
economy, how it may impact us and make adjustments accordingly." Thus,
for the quarter ending September 30, 2004, earnings were $2,374,362, a
slight decrease from the $2,379,493 earned in the same period last
year due to the increased loan loss provision. Net income for the nine
months ending September 30, 2004 was $7,593,138 compared to $5,723,454
for the same period last year, a $1,869,684, or 32.7% increase. The
return on average assets was 1.69% for the third quarter and 2.03% for
the nine-month period, and the return on average equity was 24.61% for
the third quarter and 29.21% for the nine-month period, all well above
peer group averages.
Total assets increased 45%, from $411,201,196 at September 30,
2003 to $595,246,198 at September 30, 2004. Loans increased 42%, with
construction loans increasing 66%, real estate secured loans
increasing 51%, and SBA loans increasing 32%. The large increase in
construction loans was due to increased tract housing construction,
the addition of the loan production office in San Rafael, and the
general overall robust real estate market in Southern California.
Federal funds sold increased from $6,220,000 to $26,900,000. The
allowance for loan loss increased from $3,371,272 at September 30,
2003 to $5,351,737 at September 30, 2004, a 59% increase which set the
allowance for loan loss as a percent of loans from 0.94% a year
earlier to 1.06% at September 30, 2004.
Net charge-offs were $641,096 for the first nine months of 2004,
compared to $296,123 for the same period in 2003. Non-accrual loans
(net of SBA guarantees) were $2,541,320 at September 30, 2004 compared
to $1,043,668 at September 30, 2003. Other real estate owned (net of
SBA guarantees) was $75,675 at September 30, 2004 compared to $697,786
at September 30, 2003.
For the twelve-month period, fixed assets increased from
$2,126,175 to $3,979,370 due to the addition of two full service
offices and a few loan production offices. The SBA servicing assets
increased due to SBA 7A loan sales in the secondary market.
Deposits increased 45%, from $365,307,695 at September 30, 2003 to
$528,691,420 at September 30, 2004. The continued expansion of
existing branches, as well as various CD promotions and the two new
branches have fueled the deposit growth. Deposit growth is expected to
be sufficient in the future to fund loan growth.
Junior subordinated debt securities increased $8,248,000 due to
the net addition of $8,000,000 of trust preferred borrowing that was
transferred to the Bank as tier one capital, and is considered tier
one and tier two capital on a consolidated basis. Included in other
liabilities is a $400,000 reserve for undisbursed loans, which was set
up in September 2004. The related $400,000 expense is reflected in
other expense.
Shareholder equity increased from $27,226,703 at September 30,
2003 to $39,790,676 at September 30, 2004 due to net income and the
exercise of stock options. The capital ratios remain strong, with the
tier one leverage ratio of 9.32%, the tier one risk-based ratio of
9.47% and the total risk-based capital ratio of 11.70%, all continue
to be easily above the minimums to qualify as "well capitalized."
Temecula Valley Bank was established in 1996 and operates full
service offices in Temecula, Murrieta, Corona, Fallbrook, Escondido,
Rancho Bernardo and El Cajon. Temecula Valley Bancorp was established
in June 2002 and operates as a one-bank holding company for Temecula
Valley Bank. As a Preferred Lender (PLP) since 1998, the locally owned
and operated bank also has SBA loan production offices in Sherman
Oaks, Fresno, Chico, Anaheim Hills, and Irvine, Calif.; Bellevue,
Wash.; Gurnee, Ill.; Westlake, Ohio; Ocean City, N.J.; Tampa/St.
Petersburg, Coral Springs, and Jacksonville, Fla.; and Atlanta. The
Bancorp's common stock is traded over the counter with the stock
symbol "TMCV.OB" and the bank's Internet website can be reached at
www.temvalbank.com.
Statements concerning future performance, developments, or events
concerning expectations for growth and market forecasts, and any other
guidance on future periods constitute forward-looking statements that
are subject to a number of risks and uncertainties. Actual results may
differ materially from stated expectations. Specific factors include,
but are not limited to, the effect of interest rate changes, the
ability to control costs and expenses, the impact of consolidation in
the banking industry, financial policies of the United States
government, and general economic conditions. Additional information on
these and other factors that could affect financial results are
included in the bank's Securities and Exchange Commission filings.
TEMECULA VALLEY BANCORP INC.
FINANCIAL DATA
SEPTEMBER 2004
(all amounts in whole dollars except share and per share information)
Increase Increase
Sept. 30, Sept. 30, (Decrease) (Decrease)
2004 2003
------------ ------------ ------------ ----------
ASSETS
Cash and due from
banks 10,362,018 11,792,957 (1,430,939) (12%)
Federal funds sold 26,900,000 6,220,000 20,680,000 332%
Securities
available for sale
- FRB/FHLB stock 2,125,500 962,200 1,163,300 121%
Securities - held
to maturity 0 0 0 0%
Loans 505,368,986 356,827,716 148,541,270 42%
Less allowance for
loan losses (5,351,737) (3,371,272) 1,980,465 59%
------------ ------------ ------------
Loans, net 500,017,249 353,456,444 146,560,805 41%
Bank premises and
equipment, net 3,979,370 2,126,175 1,853,195 87%
Other real estate
owned, net 302,698 1,336,036 (1,033,338) (77%)
SBA-loan servicing
I/O strip
receivable 23,644,223 18,883,704 4,760,519 25%
SBA-loan servicing
asset 7,709,287 5,571,993 2,137,294 38%
Cash surrender
value life
insurance 9,494,528 4,723,133 4,771,395 101%
Other Assets 10,711,325 6,128,554 4,582,771 75%
------------ ------------ ------------
595,246,198 411,201,196 184,045,002 45%
============ ============ ============
LIABILITIES AND
STOCKHOLDER EQUITY
Demand deposits 138,303,661 108,136,339 30,167,322 28%
Interest bearing
deposits 390,387,759 257,171,356 133,216,403 52%
------------ ------------ ------------
Total deposits 528,691,420 365,307,695 163,383,725 45%
Junior subordinated
debt securities 20,620,000 12,372,000 8,248,000 67%
Other liabilities 6,144,102 6,294,798 (150,696) (2%)
------------ ------------ ------------
Total liabilities 555,455,522 383,974,493 171,481,029 45%
Stockholders'
equity 39,790,676 27,226,703 12,563,973 46%
------------ ------------ ------------
595,246,198 411,201,196 184,045,002 45%
============ ============ ============
3 Mos 3 Mos 9 Mos 9 Mos
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
---------- ---------- ----------- -----------
Interest income 8,783,386 6,367,114 23,390,660 17,491,132
Interest expense 1,750,845 1,219,119 4,369,049 3,679,435
---------- ---------- ----------- -----------
Net interest income 7,032,541 5,147,995 19,021,611 13,811,697
Provision for loan
losses 1,635,000 150,000 2,385,000 650,000
Other income 7,288,248 6,424,132 20,742,937 17,925,606
Other expense 8,665,678 7,399,214 24,517,997 21,405,457
---------- ---------- ----------- -----------
Earnings before income
taxes 4,020,111 4,022,913 12,861,551 9,681,846
Income taxes 1,645,749 1,643,420 5,268,413 3,958,392
---------- ---------- ----------- -----------
Net earnings 2,374,362 2,379,493 7,593,138 5,723,454
========== ========== =========== ===========
Actual common shares
outstanding at end of
period 8,690,503 8,087,614 8,690,503 8,087,614
Average common shares
outstanding 8,662,855 7,980,546 8,432,075 7,720,546
Average common shares &
equivalents outstanding 9,481,185 8,925,436 9,335,237 8,656,638
Basic earnings per share 0.27 0.30 0.90 0.74
Diluted earnings per
share 0.25 0.27 0.81 0.66
Return on average assets
(annualized) 1.69% 2.35% 2.03% 2.06%
Return on average equity
(annualized) 24.61% 36.77% 29.21% 32.88%
Efficiency ratio 60.51% 63.94% 61.66% 67.45%
9/30/2004 9/30/2003
---------- ----------
Tier 1 leverage capital
ratio 9.32% 8.86%
Tier 1 risk-based
capital ratio 9.47% 9.55%
Total risk-based capital
ratio 11.70% 11.29%
Allowance for loan
losses as a % of total
loans 1.06% 0.94%
Gross nonperforming
assets as a % of total
assets 1.71% 1.82%
Net nonperforming assets
as a % of total assets 0.44% 0.42%
Net charge-offs
(annualized) as a % of
total loans 0.17% 0.11%
Loan to deposit ratio 95.59% 97.68%
All share and per share data adjusted for a two-for-one common stock
split effective December 2003.
CONTACT: Temecula Valley Bancorp Inc.
Stephen H. Wacknitz, President/CEO
951-694-9940