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Temecula Valley Bancorp Reports Full Year and Fourth Quarter 2008 Results
TEMECULA, Calif.--(BUSINESS WIRE)--February 3, 2009--Temecula Valley Bancorp Inc. (NASDAQ: TMCV):
- Full Year Net Loss of $16 Million Driven by Continued Aggressive Actions to Build Reserves
- Significant Progress Against Strategic Initiatives to Increase Capital, Diversify Loan Portfolios and Reduce Operating Expenses by $10 Million Annually
- Total Risk-Based Capital Ratio of 10.69% Exceeds Regulatory “Well-Capitalized” Minimum
- Total Assets Up 18% Over 2007
- SBA and Commercial Loans Increase; Percentage of Real Estate Construction Loans in Total Portfolio Continues to Decline
Temecula Valley Bancorp Inc. (NASDAQ: TMCV) today reported a net loss of $11.9 million, or $1.18 per share, for the fourth quarter of 2008, driven primarily by a $23.7 million provision for loan losses, compared to a net loss of $3.6 million, or $0.36 per share, in the immediate prior quarter and a net income of $3.1 million, or $0.30 per diluted share, for the fourth quarter of 2007. For the full year in 2008, following a $38.8 million provision for loan losses, the Company’s net loss totaled $16.0 million, or $1.60 per share, compared to earnings of $15.1 million, or $1.41 per diluted share for the full year in 2007.
“This quarter we have made strong progress on our new strategic initiatives to improve the operations of the bank and to strengthen the capital position of the Company,” said Frank Basirico, Chief Executive Officer. “Over the past few months, we completed staff reductions, implemented organizational changes and realigned our operating footprint to focus on our core markets in Southern California. This reduction in workforce, which included all levels of staff, is expected to generate more than $10 million in operating expense savings annually. While the current economic climate remains challenging, we have a clear strategy in place to continue reducing costs, further strengthen Temecula’s earnings capacity, provide excellent service to our customers and deliver long-term value for our shareholders.
“We have also engaged Stifel Nicolaus to assist us in exploring capital alternatives. We are working closely with them to determine the feasibility, structuring and potential terms for investment inquiries that we have received to date, should these opportunities progress,” Basirico continued. “Our primary goal in this effort is to put the bank in the best possible position to participate in any recapitalization programs that may be available while further strengthening our capital base so that we are well-prepared to weather any additional challenges in 2009.”
Temecula Valley Bancorp also provided additional details on progress the Company has made against its three-year strategic plan. To date, the Company has:
- Developed and implemented a capital plan to enhance capital ratios for the Bank and the Holding Company;
- Expanded and enhanced Board supervision of management, policies and objectives;
- Developed and implemented an asset disposition plan for classified assets to reduce nonperforming loans through collection and negotiations with delinquent borrowers, and to document the improved methodology of the loan loss reserve policy;
- Developed a plan to systematically diversify its loan portfolio and reduce concentrations in land and construction loans;
- Developed a plan to systematically diversify the deposit base and reduce reliance on brokered deposits;
- Ensured that the senior management team has the talent and expertise needed to implement this strategic realignment and determined a means to retain and recruit seasoned professionals, as necessary; and
- Developed and implemented a plan to return the bank to profitable operations.
The following information was filed by Temecula Valley Bancorp Inc (TMCV) on Wednesday, February 4, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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