I am also 5'6 and I weigh 133 and I am a tennis pro, I do not look overweight and I am 39 years old. So, its not about the height and weight always. You probably look great to others and if you eat healthy and maintain your body through moderate exercise then your doing great.
My suggestion to you for love handles is simple, add these things to your diet if your diet allows you to do so and swim 20 minutes per day and you will tighten your sides up in no time at all. I do this all of the time. If you do not enjoy swimming you can just as well do a simple areobic dance style circuit program. Both will work with if you stick to 20 minutes of it and here are the foods to add to make the difference:
Almonds, walnuts, cottage cheese,apple, eggs.
Hope this helps some, good luck, Lanea