TEMECULA VALLEY BANCORP INC. 
By Temecula Valley Bancorp Inc. (NASDAQ:TMCV) announces a 22% increase in earnings for the quarter ending September 30, 2006.
"We are very pleased with our continued strong financial performance," stated Stephen H. Wacknitz, Chairman of the Board, CEO and President. ?Our third quarter profits were $4.0 million, a 22% increase from the $3.3 million earned in the same period last year. Net income for the first nine months of 2006 was $12.5 million, a 22% increase over the $10.2 million earned in the same period last year.?
Net interest income for the quarter ending September 30, 2006 was $15.6 million, a 38% increase from the $11.3 million earned in the same period last year. The increase was primarily due to the increase in loans outstanding.
Return on average assets was 1.48% and return on average equity was 22.72% for the quarter ending September 30, 2006. For the first nine months of the year, the return on average assets was 1.72% and the return on average equity was 25.85%. ?Based on our industry's historical performance this places us among the top performers in the country,? stated Steve Wacknitz.
Total assets were $1.14 billion at September 30, 2006, a 44% increase from $794.8 million at September 30, 2005. For the same period, loans increased 55%. ?The increase in loans was due to continued strong lending activity in the markets we serve as well as adding new profit centers, including the SBA unguaranteed purchase program, whose outstanding loans have surpassed $100 million within the first six months of operation,? stated Steve Wacknitz.
The allowance for loan loss increased 41%, from $8.2 million at September 30, 2005 to $11.6 million at September 30, 2006. Net charge-offs were $111 thousand for the first nine months of 2005 and $168 thousand for the same period in 2006. Non-accrual loans (net of SBA guarantees) were $1.8 million at September 30, 2005 and $2.8 million at September 30, 2006. There was $1.5 million of other real estate owned (net of SBA guarantees) at September 30, 2005 compared to $973 thousand at September 30, 2006.
Deposits increased 45% from $703.9 million at September 30, 2005 to $1.02 billion at September 30, 2006. The deposit growth has been fueled by existing branch growth, through various CD promotions, from money desk operations, and from our new Carlsbad and Solana Beach full service branches.
Shareholder equity increased 35% from $53.9 million at September 30, 2005 to $73.0 million at September 30, 2006, due primarily to net income and the exercise of stock options. Capital ratios remain strong at September 30, 2006, with the tier one leverage ratio at 8.94%, the tier one risk-based ratio at 8.31% and the total risk-based capital ratio at 10.69% all above the minimum to qualify as "well capitalized." During the third quarter of 2006, $12 million of junior subordinated debt securities were issued, of which $11.5 million was transferred to Temecula Valley Bank as tier one capital.
?With the recent trends in the California real estate market the Bank remains strong with 95% of its loans secured by real estate with an overall loan to value of 65%. Additionally, we believe that other major economic indicators in California remain strong,? stated Steve Wacknitz.
Temecula Valley Bank was established in 1996 and operates full service offices in Temecula, Murrieta, Corona, Fallbrook, Escondido, Rancho Bernardo, El Cajon, Carlsbad and Solana Beach. The Bank also operates a number of regional real estate loan production centers in California. 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. The Bank's website is at www.temvalbank.com. Temecula Valley Bancorp was established in June 2002 and operates as a bank holding company for the Bank.
Temecula Valley Bancorp stock is traded on the NASDAQ Global Select Market under the symbol TMCV.
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.
| TEMECULA VALLEY BANCORP INC. | ||||||||
| FINANCIAL DATA | ||||||||
| SEPTEMBER 2006 | ||||||||
| (UNAUDITED) | ||||||||
| (all amounts in whole dollars except share and per share information) | ||||||||
Sept 30, 2006 | Sept 30, 2005 | Increase (Decrease) |
Increase (Decrease) | |||||
| ASSETS | ||||||||
| Cash and due from banks | 16,453,334 | 12,666,220 | 3,787,114 | 30% | ||||
| Due from Banks-Time | 99,000 | 0 | 99,000 | 0% | ||||
| Federal funds sold | 4,350,000 | 32,240,000 | (27,890,000) | (87%) | ||||
| Loans | 1,061,515,364 | 686,377,936 | 375,137,428 | 55% | ||||
| Less allowance for loan losses | (11,631,171) | (8,240,198) | (3,390,973) | 41% | ||||
| Loans, net | 1,049,884,193 | 678,137,738 | 371,746,455 | 55% | ||||
| Federal Reserve & Home Loan Bank stock, at cost | 1,969,000 | 2,867,600 | (898,600) | (31%) | ||||
| Other real estate owned, net | 2,130,500 | 2,111,250 | 19,250 | 1% | ||||
| Bank premises and equipment, net | 5,171,998 | 4,745,390 | 426,608 | 9% | ||||
| SBA-loan servicing asset | 8,402,234 | 8,059,947 | 342,287 | 4% | ||||
SBA-loan servicing I/O strip receivable | 14,883,673 | 22,513,631 | (7,629,958) | (34%) | ||||
| Cash surrender value life insurance | 22,316,484 | 17,392,824 | 4,923,660 | 28% | ||||
| Other Assets | 18,310,946 | 14,097,984 | 4,212,962 | 30% | ||||
| 1,143,971,362 | 794,832,584 | 349,138,778 | 44% | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Demand deposits | 155,444,790 | 153,506,186 | 1,938,604 | 1% | ||||
| Interest bearing deposits | 862,010,600 | 550,375,133 | 311,635,467 | 57% | ||||
| Total deposits | 1,017,455,390 | 703,881,319 | 313,574,071 | 45% | ||||
| Junior subordinated debt securities | 41,240,000 | 28,868,000 | 12,372,000 | 43% | ||||
| Other liabilities | 12,315,798 | 8,128,992 | 4,186,806 | 52% | ||||
| Total liabilities | 1,071,011,188 | 740,878,311 | 330,132,877 | 45% | ||||
Stockholders' equity | 72,960,174 | 53,954,273 | 19,005,901 | 35% | ||||
| 1,143,971,362 | 794,832,584 | 349,138,778 | 44% | |||||
| 3 Mos. Ended | 3 Mos. Ended | 9 Mos. Ended | 9 Mos. Ended | |||||
| Sept 30, 2006 | Sept 30, 2005 | Sept 30, 2006 | Sept 30, 2005 | |||||
| Interest income | 25,201,017 | 15,351,569 | 66,533,057 | 40,216,507 | ||||
| Interest expense | 9,608,106 | 4,051,121 | 23,035,068 | 9,608,558 | ||||
| Net interest income | 15,592,911 | 11,300,448 | 43,497,989 | 30,607,949 | ||||
| Provision for loan losses | 1,350,000 | 346,000 | 2,760,000 | 1,988,900 | ||||
| Other income | 4,332,786 | 5,599,165 | 15,748,577 | 18,847,475 | ||||
| Other expense | 11,603,993 | 10,950,340 | 34,734,842 | 29,967,152 | ||||
| Earnings before income taxes | 6,971,704 | 5,603,273 | 21,751,724 | 17,499,372 | ||||
| Income taxes | 2,953,999 | 2,318,111 | 9,223,718 | 7,269,489 | ||||
| Net earnings | 4,017,705 | 3,285,162 | 12,528,006 | 10,229,883 | ||||
| Actual common shares outstanding at end of period | 9,169,088 | 8,879,697 | 9,169,088 | 8,879,697 | ||||
| Average common shares outstanding | 9,149,922 | 8,870,793 | 9,044,249 | 8,829,197 | ||||
| Average common shares & equivalents outstanding | 9,742,530 | 9,659,261 | 9,611,518 | 9,562,584 | ||||
| Basic earnings per share | 0.44 | 0.37 | 1.39 | 1.16 | ||||
| Diluted earnings per share | 0.41 | 0.34 | 1.30 | 1.07 | ||||
| Return on average assets (annualized) | 1.48% | 1.72% | 1.72% | 1.96% | ||||
| Return on average equity (annualized) | 22.72% | 24.97% | 25.85% | 28.28% | ||||
| Efficiency ratio | 58.24% | 64.80% | 58.63% | 60.59% | ||||
| 09/30/2006 | 09/30/2005 | |||||||
| Tier 1 leverage capital ratio | 8.94% | 9.34% | ||||||
| Tier 1 risk-based capital ratio | 8.31% | 9.04% | ||||||
| Total risk-based capital ratio | 10.69% | 11.45% | ||||||
| Allowance for loan losses as a % of total loans | 1.10% | 1.20% | ||||||
| Gross nonperforming assets as a % of total assets | 1.21% | 1.15% | ||||||
| Net nonperforming assets as a % of total assets | 0.33% | 0.41% | ||||||
Net charge-offs (annualized) as a % of total loans | 0.02% | 0.02% | ||||||
| Loan to deposit ratio | 104.33% | 97.51% | ||||||
| Book value per share | 7.96 | 6.08 |
| PAST DUE AND NON-ACCRUAL LOANS | ||||||
| Sept 30, 2006 | Gross Balance | Government Guaranty | Net Balance | |||
30-89 days past due | 379,985 | (160,617) | 219,368 | |||
| 90+ days past due and accruing | 0 | 0 | 0 | |||
| Non-accrual | 11,669,599 | (8,858,481) | 2,811,118 | |||
| Other real estate owned (REO) | 2,130,500 | (1,157,924) | 972,576 | |||
Total nonperforming assets | 13,800,099 | (10,016,405) | 3,783,694 | |||
| Sept 30, 2005 | ||||||
30-89 days past due | 1,383,506 | (1,176,386) | 207,120 | |||
| 90+ days past due and accruing | 0 | 0 | 0 | |||
| Non-accrual | 7,029,016 | (5,247,485) | 1,781,531 | |||
| Other real estate owned (REO) | 2,111,250 | (604,004) | 1,507,246 | |||
Total nonperforming assets | 9,140,266 | (5,851,489) | 3,288,777 |
NET LOAN CHARGE-OFFS | |||||||||||||||||||||||||||||||||||||||||
| 3 Mos. Ended | 3 Mos. Ended | 9 Mos. Ended | 9 Mos. Ended | ||||||||||||||||||||||||||||||||||||||
| Sept 30, 2006 | Sept 30, 2005 | Sept 30, 2006 | Sept 30, 2005 | ||||||||||||||||||||||||||||||||||||||
Charge-offs | 60,713 | 25,709 | 356,594 | 430,534 | |||||||||||||||||||||||||||||||||||||
| Recoveries | (171,785) | (80,727) | (188,611) | Share
© Business Wire - 2006
Temecula Valley Bancorp Inc. serves as the holding company for Temecula Valley Bank (the Bank). The Companyâs activities consist of owning the outstanding common stock of the Bank, Temecula Valley Statutory Trust II, Temecula Valley Statutory Trust III, Temecula Valley Statutory Trust IV, Temecula Valley Statutory Trust V and Temecula Valley Statutory Trust VI. The Bank has 11 full-service banking offices in California providing services to customers in the Riverside, San Bernardino and San Diego Counties. Its principal office is located in Temecula, California with other California full-service offices in Carlsbad, Corona, El Cajon, Escondido, Fallbrook, Murrieta, Ontario, Solana Beach, San Marcos, and in the Rancho Bernardo area of San Diego. The Bank also operates loan production offices, which principally generate construction and/or real estate secured loans in Ontario and Temecula, California.
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