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Temecula Valley Bancorp Announces Second Quarter 2008 Results
- Adds $5.3 Million to Reserves, Generating Loss of $2 Million
- Well Capitalized – Total Risk Based Capital 11.80%
- Return to Profitability Anticipated 3rd Quarter 2008
TEMECULA, Calif.--(BUSINESS WIRE)--Temecula Valley Bancorp Inc. (NASDAQ:TMCV) today announced a net loss of $2.0 million, or $0.20 per diluted share, for the second quarter ending June 30, 2008 compared with net income of $5.3 million, or $0.47 per diluted share, reported for the second quarter of 2007. Results reflect the combined impact of a lower net interest margin, a substantial increase in the loan loss provision, and lower noninterest income, partially offset by lower noninterest expense.
For the first six months of 2008, Temecula had a loss of $553 thousand, or $0.06 per diluted share, compared with net income of $9.4 million for the first six months of 2007, or $0.85 per diluted share.
Chairman, President, and CEO, Stephen H. Wacknitz stated, “Clearly, we are continuing to work our way through one of the most challenging economic environments we’ve experienced in a long time. We remain confident that our markets will rebound. We have a strong capital base, solid credit and underwriting infrastructure, and a solid business strategy being implemented by a seasoned team of managers and lenders. We are prepared to address the difficult market and anticipate returning to profitability next quarter.”
Highlights of the 2008 second quarter are as follows:
- Loan loss provision $5.3 million versus $0 in the second quarter of 2007.
- Temecula’s strategy to reduce overall portfolio risk is succeeding at a rapid pace. Construction & development loans reduced from 50.4 percent of total loans a year earlier to 46.2 percent at the end of the current quarter, while SBA loans grew $68.3 million, or 26.2 percent year over year, and now constitute 24.8 percent of the portfolio, up from 22.6 percent last year.
- Year over year assets increased 12 percent to $1.5 billion. In January 2008, David H. Bartram, a 26-year veteran in banking and SBA was hired to diversify the bank’s loan portfolio, following his previous success in SBA lending at Bank of Commerce and U.S. Bank. SBA production was $107.9 million in the second quarter of 2008 compared to $85.2 million in 2007, and $172.8 million year to date 2008 compared to $156.7 million year to date 2007.
- Net interest income decreased by $5.0 million year over year, or 29.5 percent, primarily from a 185 basis point decline in the net interest margin, partially offset by 6.15 percent growth in average earning assets.
The following information was filed by Temecula Valley Bancorp Inc (TMCV) on Wednesday, July 30, 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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