Exhibit 99.1
Temecula Valley Bancorp Inc. Announces Record Earnings
TEMECULA, Calif.--(BUSINESS WIRE)--April 26, 2005--Temecula Valley
Bancorp Inc.'s (OTCBB:TMCV) earnings for the quarter ending March 31,
2005 were $3,001,680, a 17% increase from the $2,572,150 earned in the
same period last year.
"We are pleased with the results," stated Stephen H. Wacknitz,
President/CEO, "considering the provision for loan losses was
increased from $500,000 in the first quarter last year to $838,800 in
the first quarter this year, and the reserve for undisbursed loans for
the first quarter increased $74,000 over last year during the same
period."
The $561,000 reserve for undisbursed loans is not included in the
allowance for loan loss, which increased from $3,859,797 at March 31,
2004 to $7,046,382 at March 31, 2005. Also included in the expenses
for 2005 are the start up expenses associated with the future opening
of the Carlsbad full-service office and the Indian Wells office. The
net interest margin for 2004 was 5.96% and 6.56% for the first quarter
of 2005. The net interest margin should continue to improve if the
Federal Reserve Bank continues rate increases.
Total assets increased 49%, from $467,015,799 at March 31, 2004 to
$656,860,345 at March 31, 2005. For the same periods, loans increased
49%, with construction loans increasing 88%, real estate secured loans
increasing 43% and commercial loans decreasing 21%. SBA loans, which
include both real estate secured as well as commercial loans,
increased 25%. 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 decreased from $20,810,000 at March 31, 2004 to
$5,700,000 at March 31, 2005 due to loans increasing more than
deposits. The allowance for loan loss increased from $3,859,797 at
March 31, 2004 to $7,046,382 at March 31, 2005, an 83% increase which
set the allowance for loan loss as a percent of loans from 0.98% a
year earlier to 1.20% at March 31, 2005.
Net charge-offs were $248,036 for the first three months of 2004,
compared to $154,952 for the same period in 2005. Non-accrual loans
(net of SBA guarantees) were $1,513,826 at March 31, 2004, compared to
$3,305,264 at March 31, 2005. Other real estate owned (net of SBA
guarantees) was $405,000 at March 31, 2004 compared to $68,750 at
March 31, 2005.
For the twelve month period ending March 31, 2005, fixed assets
increased from $2,133,324 to $4,742,609 due to the addition of two
full-service offices, the construction of a new location for the
Escondido office, and new loan production offices added in 2004. The
SBA servicing assets increased due to SBA 7A loan sales in the
secondary market.
Deposits increased 40%, from $416,828,227 at March 31, 2004 to
$582,866,885 at March 31, 2005. 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 near future to fund loan growth.
Junior subordinated debt securities increased $8,248,000 from
March 31, 2004 to March 31, 2005 when compared to March 31, 2004 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 $561,000 reserve for undisbursed loans. The
related expense for this reserve is reflected in other expense.
Shareholder equity increased from $33,185,623 at March 31, 2004 to
$46,054,088 at March 31, 2005 due to net income and the exercise of
stock options. The capital ratios remain strong at March 31, 2005,
with the tier one leverage ratio of 9.47%, the tier one risk based
ratio of 9.22% and the total risk based capital ratio of 11.15%, all
easily above the minimum 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 California and six other states. Temecula Valley Bancorp's common
stock is quoted in the over the counter market and trades under the
symbol TMCV.OB. The Bank's website is 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 its Securities and Exchange Commission filings.
TEMECULA VALLEY BANCORP INC.
FINANCIAL DATA
MARCH 2005
(UNAUDITED)
(all amounts in whole dollars except share and per share information)
Increase Increase
Mar. 31, Mar. 31, (Decrease) (Decrease)
2005 2004
------------ ------------ ------------ ----------
ASSETS
Cash and due from
banks 9,841,055 10,691,509 (850,454) (8%)
Federal funds sold 5,700,000 20,810,000 (15,110,000) (73%)
Securities - held to
maturity 0 0 0 0%
Loans 587,152,507 392,748,738 194,403,769 49%
Less allowance for
loan losses (7,046,382) (3,859,797) 3,186,585 83%
------------ ------------ ------------
Loans, net 580,106,125 388,888,941 191,217,184 49%
Federal Reserve &Home
Loan Bank stock, at
cost 2,680,000 1,938,900 741,100 38%
Other real estate
owned, net 275,000 405,000 (130,000) (32%)
Bank premises and
equipment, net 4,742,609 2,133,324 2,609,285 122%
SBA-loan servicing
I/O strip
receiveable 24,020,948 20,866,935 3,154,013 15%
SBA-loan servicing
asset 7,871,752 6,241,789 1,629,963 26%
Cash surrender value
life insurance 9,680,824 7,601,329 2,079,495 27%
Other Assets 11,942,032 7,438,072 4,503,960 61%
------------ ------------ ------------
656,860,345 467,015,799 189,844,546 41%
============ ============ ============
LIABIITIES AND
STOCKHOLDER EQUITY
Demand deposits 144,502,854 119,640,183 24,862,671 21%
Interest bearing
deposits 438,364,031 297,188,044 141,175,987 48%
------------ ------------ ------------
Total deposits 582,866,885 416,828,227 166,038,658 40%
Junior subordinated
debt securities 20,620,000 12,372,000 8,248,000 67%
Other liabilities 7,319,372 4,629,949 2,689,423 58%
------------ ------------ ------------
Total liabilities 610,806,257 433,830,176 176,976,081 41%
Stockholder's equity 46,054,088 33,185,623 12,868,465 39%
------------ ------------ ------------
656,860,345 467,015,799 189,844,546 41%
============ ============ ============
3 Mos Ended 3 Mos Ended Increase Increase
Mar. 31, Mar. 31, (Decrease) (Decrease)
2005 2004
------------ ------------ ------------ ----------
Interest income 11,410,544 6,816,628 4,593,916 67%
Interest expense 2,378,308 1,242,563 1,135,745 91%
------------ ------------ ------------
Net interest income 9,032,236 5,574,065 3,458,171 62%
Provision for loan
losses 838,800 500,000 338,800 68%
Other income 5,783,496 6,727,789 (944,293) (14%)
Other expense 8,836,692 7,444,608 1,392,084 19%
------------ ------------ ------------
Earnings before
income taxes 5,140,240 4,357,246 782,994 18%
Income taxes 2,138,560 1,785,096 353,464 20%
------------ ------------ ------------
Net earnings 3,001,680 2,572,150 429,530 17%
============ ============ ============
Actual common shares
outstanding at end
of period 8,812,283 8,308,896
Average common shares
outstanding 8,787,593 8,237,774
Average common shares
& equivalents
outstanding 9,511,505 9,219,285
Basic earnings per
share 0.34 0.31
Diluted earnings per
share 0.32 0.28
Return on average
assets (annualized) 1.91% 2.31%
Return on average
equity (annualized) 27.37% 33.15%
Efficiency ratio 59.64% 60.52%
3/31/2005 3/31/2004
------------ ------------
Tier 1 leverage
capital ratio 9.47% 9.73%
Tier 1 risk-based
capital ratio 9.22% 9.99%
Total risk-based
capital ratio 11.15% 11.14%
Allowance for loan
losses as a % of
total loans 1.20% 0.98%
Gross nonperforming
assets as a % of
total assets 1.66% 1.78%
Net nonperforming
assets as a % of
total assets 0.51% 0.41%
Net chargeoffs
(annualized) as a %
of total loans 0.11% 0.25%
Loan to deposit ratio 100.74% 94.22%
Book value per share 5.23 3.99
PAST DUE AND NON-ACCRUAL LOANS
- ------------------------------ ----------- ----------- ----------
Gross Government Net
Balance Guaranty Balance
----------- ----------- ----------
March 31, 2005
- --------------
30 - 89 days past due 438,642 0 438,642
=========== =========== ==========
90+ days past due and accruing 0 0 0
Non-accrual 10,655,283 (7,350,019) 3,305,264
Other real estate owned (REO) 275,000 (206,250) 68,750
----------- ----------- ----------
Total non-performing assets 10,930,283 (7,556,269) 3,374,014
=========== =========== ==========
March 31, 2004
- --------------
30 - 89 days past due 0 0 0
=========== =========== ==========
90+ days past due and accruing 0 0 0
Non-accrual 7,918,753 (6,404,927) 1,513,826
Other real estate owned (REO) 405,000 0 405,000
----------- ----------- ----------
Total non-performing assets 8,323,753 (6,404,927) 1,918,826
=========== =========== ==========
NET LOAN CHARGEOFFS
- -------------------
3 Mos Ended 3 Mos Ended
Mar. 31, Mar. 31,
2005 2004
----------- -----------
Chargeoffs 259,688 250,389
Recoveries (104,736) (2,353)
----------- -----------
Net Chargeoffs 154,952 248,036
=========== ===========
CONTACT: Temecula Valley Bancorp Inc.
Stephen H. Wacknitz, 951-694-9940