Add after last graph of release: Temecula Valley Bancorp Inc. Financial Tables.

The corrected release reads:

TEMECULA VALLEY BANK ANNOUNCES RECORD EARNINGS

Temecula Valley Bancorp Inc. (Nasdaq:TMCV) announces record earnings for the quarter ending June 30, 2006.

"We are very pleased with our continued strong financial performance," stated Stephen H. Wacknitz, Chairman of the Board, CEO and President. "Our second quarter profits were $4.53 million, a 15% increase from the $3.94 million earned in the same period last year. Net income for the first half of 2006 was $8.51 million, a 23% increase over the $6.94 million earned in the same period last year. This outstanding level of profitability was achieved even after the significant costs incurred as a result of the new expense requirements associated with stock options."

The net interest income for the quarter ending June 30, 2006 was $14.54 million, a 41% increase from the $10.28 million earned in the same period last year, primarily due to the increase in loans outstanding and a slight improvement in net interest margin.

Return on average assets was 1.90% and return on average equity was 27.71% for the quarter ending June 30, 2006. For the first half of the year, the return on average assets was 1.86% and the return on average equity was 27.19%. Based on our industry's historical performance, this places the Bank among the top performers in the country.

Total assets were $1,028.23 million at June 30, 2006, a 42% increase from $724.22 million at June 30, 2005. For the same period, loans increased 47%. The increase in loans was due to continuing strong lending activity in the markets we serve.

The allowance for loan loss increased by 30% from $7.84 million at June 30, 2005 to $10.17 million at June 30, 2006. Net charge-offs were $166 thousand for the first six months of 2005 and $279 thousand for the same period in 2006. Non-accrual loans (net of SBA guarantees) were down 56% from the $3.23 million at June 30, 2005 to $1.43 million at June 30, 2006. There was no other real estate owned (net of SBA guarantees) at June 30, 2005 compared to $318 thousand at June 30, 2006.

Deposits increased 43% from $643.77 million at June 30, 2005 to $921.94 million at June 30, 2006. Continued deposit growth has been fueled at existing branches, through the various CD promotions, from money desk operations and at our new Carlsbad full service branch. Deposit growth is expected to be sufficient to fund future loan growth.

Shareholder equity increased 35% from $50.48 million at June 30, 2005 to $67.93 million at June 30, 2006, due primarily to net income and the exercise of stock options. The capital ratios remain strong at June 30, 2006, with the tier one leverage ratio of 9.37%, the tier one risk based ratio of 8.72% and the total risk based capital ratio of 10.26%, all above the minimum to qualify as "well capitalized."

"A new milestone has been achieved with assets growing to over $1 billion in just nine and a half years. This growth has been achieved while remaining one of the most profitable banks in the nation," said Mr. Wacknitz. "We were recently recognized among the top six percent of all financial institutions nationally by Sandler O'Neill & Partners, L.P., as a top-performing small-cap company receiving their prestigious 'Sm-All Stars' ranking. In addition, compared to all publicly traded community banks in the United States as of year end 2005 with assets of less than $1 billion, we were ranked the number one top performing bank in the July issue of US Banker magazine, based on a three-year average return on equity of 29.39%. Also in July, Temecula Valley Bancorp was included in the new NASDAQ Global Select Market, which has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. We are truly proud to be recognized for these significant accomplishments," added Mr. Wacknitz.

Temecula Valley Bank was established in 1996 and operates full service offices in Temecula, Murrieta, Corona, Fallbrook, Escondido, Rancho Bernardo, El Cajon and Carlsbad. The Bank also operates a number of regional real estate loan production centers in California. Temecula Valley Bancorp was established in June 2002 and operates as a bank holding company for the Bank. As a nationally authorized SBA Preferred Lender, the locally owned and operated Bank has multiple SBA loan production offices across the United States and has funded over a billion dollars in SBA loans in 33 states in the last five years. Temecula Valley Bancorp's common stock is listed on The NASDAQ Global Select 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 the filings made with Securities and Exchange Commission by Temecula Valley Bancorp Inc. -0- *T TEMECULA VALLEY BANCORP INC. FINANCIAL DATA JUNE 2006 (UNAUDITED) (all amounts in whole dollars except share and per share information) June 30, June 30, Increase Increase 2006 2005 (Decrease) (Decrease) -------------- ------------ ------------ ---------- ASSETS Cash and due from banks 15,063,434 11,013,343 4,050,091 37% Due from Banks- Time 99,000 0 99,000 0% Federal funds sold 27,400,000 27,420,000 33,200 0% Loans 924,503,883 628,212,313 296,291,570 47% Less allowance for loan losses (10,170,099) (7,839,179) (2,330,920) 30% -------------- ------------ ------------ Loans, net 914,333,784 620,373,134 293,960,650 47% Federal Reserve & Home Loan Bank stock, at cost 3,189,000 2,849,000 340,000 12% Other real estate owned, net 727,500 0 727,500 0% Bank premises and equipment, net 5,068,274 4,763,102 305,172 6% SBA-loan servicing asset 8,569,660 8,102,773 466,887 6% SBA-loan servicing I/O strip receivable 17,311,101 23,479,641 (6,168,540) (26%) Cash surrender value life insurance 21,595,034 13,469,824 8,125,210 60% Other Assets 14,869,924 12,745,640 2,124,284 17% -------------- ------------ ------------ 1,028,226,711 724,216,457 304,063,454 42% ============== ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Demand deposits 158,857,579 147,656,572 11,201,007 8% Interest bearing deposits 763,083,938 496,117,418 266,966,520 54% -------------- ------------ ------------ Total deposits 921,941,517 643,773,990 278,167,527 43% Junior subordinated debt securities 28,868,000 20,620,000 8,248,000 40% Other liabilities 9,485,411 9,338,684 146,727 2% -------------- ------------ ------------ Total liabilities 960,294,928 673,732,674 286,562,254 43% Stockholders' equity 67,931,783 50,483,783 17,448,000 35% -------------- ------------ ------------ 1,028,226,711 724,216,457 304,010,254 42% ============== ============ ============ 3 Mos. 3 Mos. 6 Mos. 6 Mos. Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Interest income 21,911,577 13,454,394 41,332,040 24,864,938 Interest expense 7,374,540 3,179,129 13,426,962 5,557,437 ----------- ----------- ----------- ----------- Net interest income 14,537,037 10,275,265 27,905,078 19,307,501 Provision for loan losses 1,096,000 804,100 1,410,000 1,642,900 Other income 6,475,149 7,464,814 11,415,791 13,248,310 Other expense 12,053,453 10,180,120 23,130,849 19,016,812 ----------- ----------- ----------- ----------- Earnings before income taxes 7,862,733 6,755,859 14,780,020 11,896,099 Income taxes 3,332,958 2,812,818 6,269,719 4,951,378 ----------- ----------- ----------- ----------- Net earnings 4,529,775 3,943,041 8,510,301 6,944,721 =========== =========== =========== =========== Actual common shares outstanding at end of period 9,140,755 8,865,447 9,140,755 8,865,447 Average common shares outstanding 9,025,994 8,828,292 8,990,537 8,808,055 Average common shares & equivalents outstanding 9,606,151 9,528,263 9,546,876 9,515,624 Basic earnings per share 0.50 0.45 0.95 0.79 Diluted earnings per share 0.47 0.41 0.89 0.73 Return on average assets (annualized) 1.90% 2.28% 1.86% 2.10% Return on average equity (annualized) 27.71% 32.87% 27.19% 30.10% Efficiency ratio 57.36% 57.38% 58.83% 58.41% 06/30/2006 06/30/2005 ---------------- -------------- Tier 1 leverage capital ratio 9.37% 9.54% Tier 1 risk-based capital ratio 8.72% 9.40% Total risk-based capital ratio 10.26% 11.08% Allowance for loan losses as a % of total loans 1.10% 1.25% Gross nonperforming assets as a % of total assets 0.87% 1.35% Net nonperforming assets as a % of total assets 0.17% 0.45% Net chargeoffs (annualized) as a % of total loans 0.06% 0.05% Loan to deposit ratio 100.28% 97.58% Book value per share 7.43 5.69 PAST DUE AND NON-ACCRUAL LOANS ------------------------------------ ---------- ----------- ---------- Gross Government Net Balance Guaranty Balance ---------- ----------- ---------- June 30, 2006 ------------------------------------ 30 - 89 days past due 2,044,141 (1,180,653) 863,488 ========== =========== ========== 90+ days past due and accruing 0 0 0 Non-accrual 8,257,182 (6,831,621) 1,425,561 Other real estate owned (REO) 727,500 (409,424) 318,076 ---------- ----------- ---------- Total non-performing assets 8,984,682 (7,241,045) 1,743,637 ========== =========== ========== June 30, 2005 ------------------------------------ 30 - 89 days past due 149,793 0 149,793 ========== =========== ========== 90+ days past due and accruing 263,218 (244,753) 18,465 Non-accrual 9,474,790 (6,244,901) 3,229,889 Other real estate owned (REO) 0 0 0 ---------- ----------- ---------- Total non-performing assets 9,738,008 (6,489,654) 3,248,354 ========== =========== ========== NET LOAN CHARGEOFFS -------------------------------- 3 Mos. 3 Mos. 6 Mos. 6 Mos. Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2006 2005 2006 2005 -------- --------- -------- --------- Chargeoffs 139,691 145,137 295,882 404,825 Recoveries (15,985) (133,834) (16,826) (238,570) -------- --------- -------- --------- Net Chargeoffs (Recoveries) 123,706 11,303 279,056 166,255 ======== ========= ======== ========= *T