Howe Barnes Hoefer

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• Howe Barnes Hoefer Arnett
• 13th Annual Bank Conference
• August 19, 2008

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Safe Harbor Statement

• Certain statements contained in this
  presentation, including, without limitation,
  statements containing the words believes,
  anticipates, intends, and expects, and
  words of similar import, constitute
  forward-looking statements within the meaning
  of Section 27A of the Securities Act of 1933 and
  Section 21E of the Securities Exchange Act of
  1934.
• Such forward looking statements involve known and
  unknown risks, uncertainties and other factors
  that may cause the actual results, performance or
  achievements of Temecula Valley Bancorp (the
  Company) to be materially different from any
  future results, performance or achievements
  expressed or implied by such forward-looking
  statements. Such factors include, among others,
  the following general economic and business
  conditions in those areas in which the Company
  operates, demographic changes, competition,
  fluctuations in interest rates, changes in
  business strategy or development plans, changes
  in governmental regulation, credit quality, the
  availability of capital to fund the expansion of
  the Companys business, and other factors
  referenced in this presentation.
• The Company disclaims any obligation to update
  any such factors or to publicly announce the
  results of any revisions to any of the
  forward-looking statements contained herein to
  reflect future events or developments.

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TMCV Investment Highlights

• Experienced management team
• Expertise in California market, SBA lending and
  real estate
• Hired 13 experienced SBA Business Development
  Officers (BDOs)
• One of top SBA Lenders in the nation
• Diversified by geography and type
• Managing risk aggressively
• Tightened credit standards
• Attractive valuation
• 0.67 of Tangible Book Value
• 14.0x trailing 12 months EPS
• 2.29 dividend yield

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TMCV Franchise

• Community Banking
• Consumer, small- mid-sized commercial loans
• 11 branches in San Diego, Riverside and San
  Bernardino Counties
• SBA Lending
• 26 SBA Business Development Officers
• California Washington
• Oregon Nevada
• Texas Florida
• Arizona
• Primarily in non-judicial foreclosure states.

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Managing Risk Aggressively

• Detailed loan review
• Frequent appraisal updates
• Third party and regulatory reviews
• Further diversifying portfolio
• CD down to 46.4 from 50.4 LTM
• Moratorium on new spec construction, land land
  development
• SBA loans up to 24.4 from 22.6 LTM
• Raising equity requirements
• Conservative Loan-to-Values
• 2Q08 Average LTV 70 from 68 in 2Q07

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Widely Diversified
Loan Portfolio by Type 1.33B

• Loan Portfolio
• at June 30, 2008
• 92 1st Trust Deed Real Estate Secured, avg. LTV
  70
• Shifting to multi-purpose commercial
  owner-occupied SBA lending
• Expanding SBA 7(a) lending
• Average loan size down to 358 thousand
• Conservative LTV

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Real Estate Loans
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Geographic Distribution of Loans

• Top 3 Other States
• Texas 4.3
• Oregon 2.2
• Florida 1.1
• Balance of other states 21.4 29.0

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Non Performing Assets

• Non-accrual 60.7
• 90 day past due 0
• OREO 13.7
• SBA guarantees (10.5)
• NPA (net) 63.9
• Net NPA / Total Assets 4.37
• Reserves (ALLL) 19.2
• ALLL/Loans 1.45

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Net Non-Performing Loans
NPLs by Geography
NPLs by Type
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O R E O
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Net Charge-Offs/Average Loans
8.3 Million in Total Net Losses since 1996
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Diversifying Loan Mix
Loans by Category

• Loan growth from SBA originations
• Retain more SBA loans in portfolio
• Increased originations
• Higher gains on sale
• Adding additional BDOs and hired new head of SBA
  Division
• Moratorium on Spec CD, land land development
  loans
• CI growing with opening of Ontario and Carlsbad
  offices

(millions)
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SBA Lending Initiatives

• Hired David Bartram
• Former president of U.S. Banks SBA Division
• Current Chairman of National Association of
  Government Guaranteed Lenders
• 27 years of SBA Experience
• Hired leading SBA team in 2008
• Hired 13 new Business Development Officers YTD
  for a total 26 BDOs

SBA Originations (Retail)
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SBA Lending A Growth Opportunity

• 26 SBA lenders in 7 States
• Ranked in the top 5 largest SBA 504 Lenders
  (9/07)
• Ranked 1 BI Lender (9/07)
• Ranked 24th largest SBA 7(a) Lender (9/07)
• Ranked 15th largest SBA 7(a) Lender (9mo. ended
  6/30/08)
• Total SBA Loans, including construction
• 481 million, or 39 of total loans
• California
• 142 million, or 30 of total SBA loans
• The next three largest states account for 17 of
  SBA loans
• Texas, 57 million
• Oregon, 29 million
• Florida, 15 million

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SBA Lending By Type

• SBA (7a) Loans 286 million
• Retain unguaranteed portions
• Sell guaranteed portions
• Avg. LTV is 75.2
• All require personal guaranties
• SBA 504 Loans 195 million
• 122 million in construction loans
• 73 million in CRE loans
• TMCV has first lien position and average LTV 55
• USDA BI Loans 20 million
• Federal guarantees up to 80
• Average LTV 80

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Strong Capital Levels
Total Leverage Ratio 9.96 Tier 1 Risk-based
Capital 9.22 Total Risk Based Capital 11.80
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Attractive Valuation

• Recent Price 7.00
• Market Cap 70 M
• Tangible Book Value /Share 10.49
• Price / TBV 0.67x
• EPS (TTM) 0.50
• P/E 14.0x
• Dividend Yield 2.29

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