-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CSlrITu4e+bpFyor34b8S3mo483SE1hgkX6fmwn9UMl2pGD4tWU8t2CdZ7FIgFu1 4bPFut75QDol30cJX9D5MQ== 0001157523-06-000586.txt : 20060125 0001157523-06-000586.hdr.sgml : 20060125 20060124193603 ACCESSION NUMBER: 0001157523-06-000586 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060123 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060125 DATE AS OF CHANGE: 20060124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMECULA VALLEY BANCORP INC CENTRAL INDEX KEY: 0001172678 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 460476193 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49844 FILM NUMBER: 06547688 BUSINESS ADDRESS: STREET 1: 27710 JEFFERSON AVENUE STREET 2: SUITE A-100 CITY: TEMECULA STATE: CA ZIP: 92590 BUSINESS PHONE: 9096949940 MAIL ADDRESS: STREET 1: 27710 JEFFERSON AVENUE STREET 2: SUITE A-100 CITY: TEMECULA STATE: CA ZIP: 92590 8-K 1 a5063951.txt TEMECULA VALLEY BANK 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 24, 2006 ________________________ TEMECULA VALLEY BANCORP INC. (Exact name of Registrant as specified in its charter) California 46-0476193 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of incorporation) Identification Number) 27710 Jefferson Avenue Suite A100 Temecula, California 92590 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (951) 694-9940 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) - -------------------------------------------------------------------------------- Item 2.02 - Results of Operations and Financial Condition. On January 23, 2006, we issued a press release disclosing information regarding our results of operations for the quarter ended December 31, 2005 and for the twelve month period ended December 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1. Such information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any of our filings, whether made before or after the date hereof, regardless of any general incorporation language in such filing. Item 9.01 - Financial Statements and Exhibits. (d) Exhibits The following exhibits are filed with this Form 8-K: 99.1 Press Release dated January 23, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TEMECULA VALLEY BANCORP INC. Date: January 24, 2006 By: /s/ STEPHEN H. WACKNITZ ---------------------------------- Stephen H. Wacknitz Chief Executive Officer and President EX-99.1 2 a5063951ex991.txt EXHIBIT 99.1 Exhibit 99.1 Temecula Valley Bancorp Inc. Announces 32% Increase in Earnings TEMECULA, Calif.--(BUSINESS WIRE)--Jan. 23, 2006--Temecula Valley Bancorp Inc. (NASDAQ:TMCV) announced that earnings for the quarter ended December 31, 2005 were $3,723,382, a 25% increase from the $2,984,485 earned in the same period last year. Net income for the year ended December 31, 2005 was $13,953,265, compared to $10,577,623 for the same period last year, a $3,375,642 or 32% increase. Return on average assets was 1.79% for the fourth quarter and 1.91% for the year ended December 31, 2005. The return on average equity was 26.44% for the fourth quarter and 27.71% for the year ended December 31, 2005. The net interest margin for all of 2004 was 5.96% and has improved to 6.78% for the year ended December 31, 2005 as the Federal Reserve Bank has continued to increase fed funds rates. "We are very pleased with the results," stated Stephen H. Wacknitz, President/CEO/Chairman, "considering that for 2005 Temecula Valley Bank (the Bank) has increased infrastructure costs to accommodate its strong organic grow. A new Chief Risk Officer, Appraisal Department Manager, Human Resources Director, Information Technology Director and their related support staff have been added to strengthen the Bank's infrastructure and risk management functions. Additionally, the Bank has continued to expand its SBA sales force and the corresponding support functions by hiring National, Western Regional and Eastern Regional Sales Managers and an Operations Manager. During 2005, the Bank also incurred additional costs related to opening two new branches. We look forward to the future benefits of our expansion efforts undertaken in 2005 and feel that our infrastructure is poised for continued strong, measured and prudent organic growth." Total assets increased 43%, from $606,827,529 at December 31, 2004 to $868,988,046 at December 31, 2005. Loans increased 42%, with construction loans increasing 89%, real estate secured loans increasing 27%, commercial loans increasing 56% and SBA loans, which include both real estate secured as well as commercial loans, decreasing 17%. 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 $16,800,000 to $33,200,000. The allowance for loan loss increased from $6,362,534 at December 31, 2004 to $9,039,155 at December 31, 2005, a 42% increase which set the allowance for loan loss as a percent of loans at 1.20% a year earlier and 1.20% at December 31, 2005. Net loan charge-offs were $220,379 for the year ended December 31, 2005, compared to $1,066,600 for the same period in 2004. Non-accrual loans (net of SBA guarantees) were $1,436,079 at December 31, 2005, compared to $3,659,079 at December 31, 2004. There was $75,675 of other real estate owned (net of SBA guarantees) as of December 31, 2004, compared to $1,507,246 at December 31, 2005. For the twelve-month period ended December 31, 2005, fixed assets increased from $4,379,809 to $4,885,015 due to the addition of the full service offices and the addition of loan production offices. The SBA servicing assets decreased $2,028,059 due to the average servicing rate slightly decreasing, partially offset by a higher servicing portfolio. Deposits increased 39%, from $534,766,705 at December 31, 2004 to $742,431,939 at December 31, 2005. The continued expansion of existing branches, as well as various CD promotions, has 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 in September 2005 of $8,000,000 of trust preferred borrowing, of which $7,000,000 was transferred to the Bank as tier one capital, and is considered tier one and tier two capital on a consolidated basis. Shareholder equity increased from $42,902,538 at December 31, 2004 to $58,180,310 at December 31, 2005 mainly due to net income and the exercise of stock options. The capital ratios remain strong, with the tier one leverage ratio of 9.28%, the tier one risk based ratio of 8.93% and the total risk based capital ratio of 11.02%, all easily above the minimum to qualify as "well capitalized." During the year ended December 31, 2005, the Temecula Valley Bancorp Inc. announced that its stock would be traded on the Nasdaq National Market. During the year ended December 31, 2005, the Bank received the SBA's approval for SBA Preferred Lenders Program Lending Status in all districts nationwide. Temecula Valley Bank was established in 1996 and operates full service offices in Temecula, Murrieta, Corona, Fallbrook, Escondido, Rancho Bernardo, El Cajon and Carlsbad. 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 various locations throughout the United States. 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 December 2005 (UNAUDITED) (all amounts in whole dollars except share and per share information) Increase Increase Dec 31, 2005 Dec 31, 2004 (Decrease) (Decrease) ------------- ------------ ------------ ---------- ASSETS Cash and due from banks $ 18,311,714 $ 6,317,261 $ 11,994,453 190% Federal funds sold 33,200,000 16,800,000 16,400,000 98% Loans 753,246,789 530,196,252 223,050,537 42% Less allowance for loan losses (9,039,155) (6,362,534) 2,676,621 42% ------------- ------------ ------------ Loans, net 744,207,634 523,833,718 220,373,916 42% Federal Reserve & Home Loan Bank stock, at cost 3,098,600 2,377,800 720,800 30% Other real estate owned, net 2,111,250 302,698 1,808,552 597% Bank premises and equipment, net 4,885,015 4,379,809 505,206 12% SBA-loan servicing I/O strip receivable 22,067,900 24,679,520 (2,611,620) (11%) SBA-loan servicing asset 8,169,273 7,585,712 583,561 8% Cash surrender value life insurance 17,590,733 9,593,824 7,996,909 83% Other Assets 15,345,927 10,957,187 4,388,740 40% ------------- ------------ ------------ 868,988,046 606,827,529 262,160,517 43% ============= ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Demand deposits 155,992,027 138,041,385 17,950,642 13% Interest bearing deposits 586,439,912 396,725,320 189,714,592 48% ------------- ------------ ------------ Total deposits 742,431,939 534,766,705 207,665,234 39% FHLB advances 30,000,000 0 30,000,000 100% Junior subordinated debt securities 28,868,000 20,620,000 8,248,000 40% Other liabilities 9,507,797 8,538,286 969,511 11% ------------- ------------ ------------ Total liabilities 810,807,736 563,924,991 246,882,745 44% Stockholders' equity 58,180,310 42,902,538 15,277,772 36% ------------- ------------ ------------ $868,988,046 $606,827,529 $262,160,517 43% ============= ============ ============ 3 Mos. 3 Mos. 12 Mos. 12 Mos. Ended Ended Ended Ended Dec 31, 2005 Dec 31, 2004 Dec 31, 2005 Dec 31, 2004 ------------ ------------ ------------ ------------ Interest income $17,908,753 $10,224,227 $58,125,260 $33,614,887 Interest expense 4,975,226 2,045,494 14,583,784 6,414,543 ------------ ------------ ----------- ------------ Net interest income 12,933,527 8,178,733 43,541,476 27,200,344 Provision for loan losses 908,100 1,436,300 2,897,000 3,821,300 Other income 4,974,688 7,955,677 23,822,163 28,698,614 Other expense 10,660,150 9,446,232 40,627,302 33,964,229 ------------ ------------ ------------ ------------ Earnings before income taxes 6,339,965 5,251,878 23,839,337 18,113,429 Income taxes 2,616,583 2,267,393 9,886,072 7,535,806 ------------ ------------ ------------ ------------ Net earnings $ 3,723,382 $ 2,984,485 $13,953,265 $10,577,623 ============ ============ ============ ============ Actual common shares outstanding at end of period 8,897,697 8,752,603 8,897,697 8,752,603 Average common shares outstanding 8,894,814 8,714,943 8,845,736 8,503,179 Average common shares & equivalents outstanding 9,650,105 9,475,367 9,587,559 9,363,868 Basic earnings per share 0.42 0.34 1.58 1.24 Diluted earnings per share 0.39 0.31 1.46 1.13 Return on average assets (annualized) 1.79% 1.94% 1.91% 2.00% Return on average equity (annualized) 26.44% 28.74% 27.71% 28.94% Efficiency ratio 59.53% 58.55% 60.31% 60.76% 12/31/2005 12/31/2004 ---------------- -------------- Tier 1 leverage capital ratio 9.28% 9.20% Tier 1 risk-based capital ratio 8.93% 9.68% Total risk-based capital ratio 11.02% 11.81% Allowance for loan losses as a % of total loans 1.20% 1.20% Gross nonperforming assets as a % of total assets 1.16% 1.99% Net nonperforming assets as a % of total assets 0.34% 0.62% Net charge-offs (annualized) as a % of total loans 0.03% 0.20% Loan to deposit ratio 101.46% 99.15% Book value per share 6.54 4.90 PAST DUE AND NON-ACCRUAL LOANS Gross Government Net Balance Guaranty Balance ---------------------------------- ----------------------- ---------- December 31, 2005 ---------------------------------- 30-89 days past due 933,294 (732,923) 200,371 =========== =========== ========== 90+ days past due and accruing 0 0 0 Non-accrual 7,950,601 (6,513,752) 1,436,849 Other real estate owned (REO) 2,111,250 (604,004) 1,507,246 ----------- ----------- ---------- Total nonperforming assets 10,061,851 (7,117,756) 2,944,095 =========== =========== ========== December 31, 2004 ---------------------------------- 30-89 days past due 11,203 0 11,203 =========== =========== ========== 90+ days past due and accruing 0 0 0 Non-accrual 11,799,346 (8,140,267) 3,659,079 Other real estate owned (REO) 302,698 (227,023) 75,675 ----------- ----------- ---------- Total nonperforming assets 12,102,044 (8,367,290) 3,734,754 =========== =========== ========== NET LOAN CHARGE-OFFS 3 Mos. 3 Mos. 12 Mos. 12 Mos. Ended Ended Ended Ended Dec 31, Dec 31, Dec 31, Dec 31, 2005 2004 2005 2004 ------------------------------ -------- -------- --------- ---------- Charge-offs 109,618 446,961 540,152 1,096,698 Recoveries (475) (21,458) (319,773) (30,098) -------- -------- --------- ---------- Net Charge-offs (Recoveries) 109,143 425,503 220,379 1,066,600 ======== ======== ========= ========== CONTACT: Temecula Valley Bancorp Inc. Terry Tarrant, 951-506-1060 ttarrant@temvalbank.com -----END PRIVACY-ENHANCED MESSAGE-----