Exhibit 99.1
Temecula Valley Bancorp Announces Record Earnings
TEMECULA, Calif.--(BUSINESS WIRE)--April 21, 2006--Temecula Valley
Bancorp Inc.'s (NASDAQ:TMCV) announces record earnings for the quarter
ending March 31, 2006.
"We are very pleased with the results," stated Stephen H.
Wacknitz, Chairman/President/CEO. "Our first quarter profits were
$3.98 million, a 33% increase from the $3 million earned in the same
period last year. This unprecedented level of profitability was
achieved despite the new requirement to expense stock options." The
net interest income for the quarter ending March 31, 2006 was $13.37
million, a 48% increase from the $9.03 million earned in the same
period last year, primarily due to the increase in loans outstanding
and improvement in net interest margin.
Return on average assets was 1.82% and return on average equity
was 26.72% for the quarter ending March 31, 2006. This level of
performance places the bank among the top performers in the country.
Total assets were $924.76 million at March 31, 2006, a 41%
increase from $656.86 million at March 31, 2005. For the same periods,
loans increased 36%. The increase in loans was due to continuing
strong lending activity.
The allowance for loan loss increased by 31% from $7.05 million at
March 31, 2005 to $9.20 million at March 31, 2006. Net charge-offs
were $155 thousand for the first three months of 2005 and for 2006.
Non-accrual loans (net of SBA guarantees) were down 70% from the $3.31
million at March 31, 2005, to $1.01 million at March 31, 2006. Other
real estate owned (net of SBA guarantees) was $69 thousand at March
31, 2005 compared to $318 thousand at March 31, 2006.
Deposits increased 42%, from $582.87 million at March 31, 2005 to
$826.40 million at March 31, 2006. The continued deposit growth of
existing branches, the various CD promotions and the new branch in
Carlsbad has fueled the deposit growth. Deposit growth is expected to
be sufficient to fund future loan growth.
Shareholder equity increased 36% from $46.05 million at March 31,
2005 to $62.82 million at March 31, 2006 due primarily to net income
and the exercise of stock options. The capital ratios remain strong at
March 31, 2006, with the tier one leverage ratio of 9.34%, the tier
one risk based ratio of 9.28% and the total risk based capital ratio
of 11.14%, all easily above the minimum to qualify as "well
capitalized."
Temecula Valley Bank (the Bank), a wholly owned subsidiary of
Temecula Valley Bancorp Inc., has eight full service branches located
in Temecula, Murrieta, Corona, Fallbrook, Escondido, Rancho Bernardo,
El Cajon and Carlsbad, California. The Bank also operates a number of
regional real estate loan production centers in California. As a
nationally authorized preferred SBA lender, the Bank has funded over a
billion dollars in SBA loans in 33 states across the nation in the
last five years.
Temecula Valley Bank was established in 1996 and Temecula Valley
Bancorp was established in June 2002. Temecula Valley Bancorp's common
stock is listed on The National NASDAQ Market and trades under the
symbol TMCV. 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 2006
(UNAUDITED)
(all amounts in whole dollars except share and per share information)
Mar. 31, Mar. 31, Increase Increase
2006 2005 (Decrease) (Decrease)
------------ ------------ ------------ ----------
ASSETS
Cash and due from
banks 13,868,353 9,841,055 4,027,298 41%
Federal funds sold 51,600,000 5,700,000 45,900,000 805%
Securities - held
to maturity 0 0 0 0%
Loans 799,099,292 587,152,507 211,946,785 36%
Less allowance for
loan losses (9,197,804) (7,046,382) 2,151,422 31%
------------ ------------ ------------
Loans, net 789,901,488 580,106,125 209,795,363 36%
Federal Reserve &
Home Loan Bank
stock, at cost 3,120,200 2,680,000 440,200 16%
Other real estate
owned, net 727,500 275,000 452,500 165%
Bank premises and
equipment, net 5,301,864 4,742,609 559,255 12%
SBA-loan servicing
I/O strip
receivable 20,200,808 24,020,948 (3,820,140) (16%)
SBA-loan servicing
asset 8,257,381 7,871,752 385,629 5%
Cash surrender
value life
insurance 17,748,233 9,680,824 8,067,409 83%
Other Assets 14,029,800 11,942,032 2,087,768 17%
------------ ------------ ------------
924,755,627 656,860,345 267,895,282 41%
============ ============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Demand deposits 159,969,726 144,502,854 15,466,872 11%
Interest bearing
deposits 666,429,061 438,364,031 228,065,030 52%
------------ ------------ ------------
Total deposits 826,398,787 582,866,885 243,531,902 42%
Junior subordinated
debt 28,868,000 20,620,000 8,248,000 40%
Other liabilities 6,666,704 7,319,372 (652,668) (9%)
------------ ------------ ------------
Total liabilities 861,933,491 610,806,257 251,127,234 41%
Stockholders'
equity 62,822,056 46,054,088 16,767,968 36%
------------ ------------ ------------
924,755,547 656,860,345 267,895,202 41%
============ ============ ============
3 Mos Ended 3 Mos Ended Increase Increase
Mar. 31, Mar. 31,
2006 2005 (Decrease) (Decrease)
------------ ------------ ------------ ----------
Interest income 19,420,463 11,410,544 8,009,919 70%
Interest expense 6,052,422 2,378,308 3,674,114 154%
------------ ------------ ------------
Net interest income 13,368,041 9,032,236 4,335,805 48%
Provision for loan
losses 314,000 838,800 (524,800) (63%)
Other income 4,940,642 5,783,496 (842,854) (15%)
Other expense 11,077,396 8,836,692 2,240,704 25%
------------ ------------ ------------
Earnings before
income taxes 6,917,287 5,140,240 1,777,047 35%
Income taxes 2,936,761 2,138,560 798,201 37%
------------ ------------ ------------
Net earnings 3,980,526 3,001,680 978,846 33%
============ ============ ============
Actual common
shares outstanding
at end of period 8,977,771 8,812,283
Average common
shares outstanding 8,954,686 8,787,593
Average common
shares &
equivalents
outstanding 9,648,850 9,511,505
Basic earnings per
share 0.44 0.34
Diluted earnings
per share 0.41 0.32
Return on average
assets
(annualized) 1.82% 1.91%
Return on average
equity
(annualized) 26.72% 27.37%
Efficiency ratio 60.50% 59.64%
3/31/2006 3/31/2005
------------ ------------
Tier 1 leverage
capital ratio 9.34% 9.47%
Tier 1 risk-based
capital ratio 9.28% 9.22%
Total risk-based
capital ratio 11.14% 11.15%
Allowance for loan
losses as a % of
total loans 1.15% 1.20%
Gross nonperforming
assets as a % of
total assets 0.75% 1.66%
Net nonperforming
assets as a % of
total assets 0.14% 0.51%
Net charge offs
(annualized) as a
% of total loans 0.08% 0.11%
Loan to deposit
ratio 96.70% 100.74%
Book value per
share 7.00 5.23
PAST DUE AND NON-ACCRUAL LOANS
- ----------------------------------- ----------------------------------
Gross Government Net
Balance Guaranty Balance
----------------------------------
March 31, 2006
- -----------------------------------
30-89 days past due 1,577,002 (848,351) 728,651
=========== =========== ==========
90+ days past due and accruing 0 0 0
Non-accrual 6,165,211 (5,157,240) 1,007,971
Other real estate owned (REO) 727,500 (409,424) 318,076
----------- ----------- ----------
Total non-performing assets 6,892,711 (5,566,664) 1,326,047
=========== =========== ==========
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
=========== =========== ==========
NET LOAN CHARGEOFFS
- -----------------------------------
3 Mos Ended 3 Mos Ended
03/31/2006 03/31/2005
----------- -----------
Charge offs 156,191 259,688
Recoveries (841) (104,736)
----------- -----------
Net Chargeoffs 155,350 154,952
=========== ===========
CONTACT: Temecula Valley Bank
Stephen H. Wacknitz, 951-694-9940