EX-99 2 a5152780ex99.htm EXHIBIT 99 Exhibit 99
 
Exhibit 99


 May 15, 2006
For Further Information:
 
Kenn Ulrich, APR (619) 397-5471
         
 
Discovery Bancorp Earnings Increase to $0.25 Per Share on Net income of $474 Thousand for First Quarter 2006

(San Marcos, California) Net earnings for Discovery Bancorp (OTCBB:DVBC) in the first quarter of 2006 were $474 thousand, or $0.25 per share, compared to $1 thousand, or $0.00 per share, in the same three months of 2005. Figures for 2006 include the addition of Celtic Capital, a commercial finance company acquired in September 2005.
 
Company assets rose to a record $178.8 million at March 31, 2006, up 8.6 percent from $164.7 million at Dec. 31, 2005. Net loans at the end of first quarter 2006 increased 6.5 percent to $143.1 million, from $134.3 million three months earlier. Total deposits grew 17.1 percent to $131.8 million as of March 31, 2006, compared to $112.6 million at Dec. 31, 2005.
 
“This was a solid three-month period for us,” said James P. Kelley, president and chief executive officer. “We focused on further integrating Celtic Capital into our business lending programs, and on the core competencies that drive our brand of community banking.”
 
Discovery Bank, founded in 2001, and Celtic Capital, headquartered in Santa Monica, Calif., operate as separate, wholly owned subsidiaries of Discovery Bancorp. The holding company was formed in June 2005 by shareholders of Discovery Bank, to support the bank’s goal of building shareholder value by owning and operating other banks and authorized non-bank businesses.
 
As of March 31 this year, Celtic’s loan portfolio had grown to $20.8 million net of reserves, 30.1 percent higher than at the time of Celtic’s acquisition.
 
In comparing the holding company’s first quarter of 2006 to the same period in 2005, assets were up by 49.7 percent from $119.5 million, net loans increased 53.2 percent from $93.4 million, and deposits were up 32.0 percent from $99.9 million.
 
“We came off a strong year in 2005, and by all indications that strength has carried over so far in 2006,” said Kelley.
 
The company’s pre-tax income jumped $831 thousand for the first quarter 2006 from $38 thousand for the same three months of 2005.
 
Sustained growth in loans led to interest income for the company of $3.8 million in the first quarter this year, a 131.7 percent increase from $1.6 million in first quarter 2005. Interest expense was up by 154.0 percent to $1.3 million for first quarter 2006 versus $506 thousand in the same period last year. Net interest income in the first three months of this year increased 121.8 percent to $2.5 million, from $1.1 million in the first three months of 2005.
 
Net interest income after the provision for loan losses was $2.4 million at March 31, 2006, or 146.6 percent more than the $982 thousand for the same period in the previous year.
 
First quarter taxes in 2006 totaled $357 thousand, a $320 thousand increase from $37 thousand in 2005.
 
Discovery Bancorp is a bank holding company serving the financial needs of small to medium-sized businesses, professionals and individuals through two principal subsidiaries - Discovery Bank and Celtic Capital Corp. The bank has offices in San Marcos and Poway, Calif., and Celtic Capital’s offices are in Santa Monica, Phoenix and Bellevue, Wash.
 
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DISCOVERY BANCORP FINANCIAL HIGHLIGHTS
          
   
Discovery Bancorp and Subsidiaries
  
(dollars in thousands)
    
As of
March 31,
 2006
    
As of
March 31,
2005
    
As of
December 31,
 2005
  
                     
ASSETS
                    
Cash & Cash Equivalents
  
$
17,583
  
$
12,375
  
$
14,854
  
Investments
    
8,528
    
6,008
    
8,008
  
Loans, net
    
143,074
    
93,398
    
134,326
  
Other Assets
    
9,629
    
7,695
    
9,518
  
TOTAL ASSETS
  
$
178,814
  
$
119,476
  
$
164,706
  
                     
LIABILITIES AND EQUITY
                    
                     
Total Deposits
  
$
131,812
  
$
99,876
  
$
112,585
  
Borrowings Under Line of Credit
    
17,957
   
0
    
16,086
  
FHLB Advances
    
4,284
    
8,500
    
12,000
  
Other Liabilities
    
1,413
    
835
    
1,192
  
Stockholders’ Equity
    
23,348
    
10,265
    
22,843
  
TOTAL LIABILITIES &
                    
STOCKHOLDERS’ EQUITY
  
$
178,814
  
$
119,476
  
$
164,706
  
                     
                     
 
    
March 31,
 2006 YTD
    
March 31,
2005 YTD
    
December 31,
2005 YTD
  
STATEMENTS OF INCOME
                  
Interest Income
  
$
3,816
  
$
1,647
  
$
9,950
  
Interest Expense
    
1,285
    
506
    
3,132
  
NET INTEREST INCOME
    
2,531
    
1,141
    
6,818
  
PROVISION FOR LOAN LOSSES
    
106
    
159
    
786
  
Net Interest Income After
                    
Provision for Loan Loss
    
2,425
    
982
    
6,032
  
Non-Interest Income
    
327
    
119
    
921
  
Non-Interest Expense
    
1,921
    
1,063
    
5,998
  
PRE-TAX INCOME
    
831
    
38
    
955
  
Taxes
    
357
    
37
    
402
  
Net Income
  
$
474
  
$
1
  
$
553
  
 
Basic Earnings Per Share
  
$
0.25
  
$
0.00
  
$
0.42
  


Forward-Looking Statements - Statements in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs on future developments and their potential effects on the company. There is no assurance that future developments affecting the company will be those anticipated by management. Forward-looking statements involve risks and uncertainties, and actual results may differ from those projected in the forward-looking statements due to credit, market, operational, liquidity, interest rate and other risks.
 
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