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Temecula Valley Bancorp Announces First Quarter 2008 Earnings
TEMECULA, Calif.--(BUSINESS WIRE)--Temecula Valley Bancorp Inc. (NASDAQ:TMCV) today announced net income of $1.5 million, or $0.14 per diluted share, for the first quarter ending March 31, 2008 compared with $4.2 million, or $0.38 per diluted share reported for the first quarter of 2007, a decline of 65.1 percent and 63.2 percent, respectively. Compared with the year-ago quarter, first quarter 2008 earnings per share results reflect the combined impact of a lower net interest margin, an increase in the loan loss provision, and a lower level of noninterest income, partially offset by lower noninterest expense and the repurchase of its common stock.
First quarter 2008 highlights compared with the prior-year first quarter are as follows:
- Net interest income declined by $2.8 million. The 138 basis point decline in the net interest margin to 4.16 percent was due mainly to the rapid Federal Reserve Bank rate decreases in 2008 and was partially offset by a higher level of earning assets.
- Noninterest income declined by $1.2 million primarily from a $0.8 million decrease in loan broker income, $1.1 million decrease in SBA 7(a) and SBA 504 sales gain, and a $0.8 million increase in SBA net servicing income.
- Twelve-month loan growth was $90.4 million, or 7.7 percent. Construction and development (C&D) loans still constitute approximately fifty percent of the loan portfolio. However, commercial loans held in the portfolio are growing slightly as a percent of the total loan portfolio.
- Compared with the fourth quarter of 2007, nonperforming assets increased by $40.5 million to $71.4 million, or 5.19 percent of total assets. Government guaranties of $11.3 million reduced the exposure to $60.2 million or 4.37 percent of total assets. Approximately 36 percent of construction loans matured this past quarter, accounting for the majority of the increase in non performing loans.
- Net charge-offs were $1.25 million, or 0.40 percent of annualized average loans, higher than historical levels but still low by current industry standards due to solid underwriting and an experienced real estate workout team.
- The board of directors authorized two stock buyback programs in 2007 to purchase up to $15.5 million and one stock buyback program in 2008 to purchase up to $8.6 million of TMCV common stock. Thus far, 684,100 shares in 2007 and 149,500 shares in 2008 have been purchased under these programs.
Chairman, President, and CEO Stephen H. Wacknitz, commented, "We are beginning to see a few bright spots on the horizon, but progress is slow. The good news is California housing has become a lot more affordable. Within our markets, the bright spot is San Francisco. Recent data suggests that there is little, if any, softening in that market in terms of value. Homes sales are also starting to improve in San Diego, and we are seeing some seasonal pickup in escrow activity. For the time being we are proceeding cautiously recognizing that more time is needed for the markets to stabilize.
The following information was filed by Temecula Valley Bancorp Inc (TMCV) on Tuesday, April 29, 2008 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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