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Earnings Swing Positive at Desert Commercial Bank

^{Published on 2010-05-07 16:35:15 - Market Wire}
 

PALM DESERT, Calif.--([ BUSINESS WIRE ])--First quarter numbers at Desert Commercial Bank (OTCBB: DCBC) show the locally owned and headquartered community bank, which serves eastern Riverside County and the Imperial Valley, getting off to a strong start in 2010. Earnings increased by $822,000, as compared to the first three months of 2009, while net interest spread for the period surged $204,000 from one year ago.

"By virtually any meaningful measure, we have made tremendous strides in increasing the value of our banking franchise"

Bank capital also increased substantially at quarter-end, aided by the infusion of $5.3 million in investor funding that arrived just before the start of the year. As of March 31, 2010, total capital stood at $16,190,000, versus $13,419,000 one year ago. Tier One risk-based capital rests comfortably above regulatory minimums at 13.98%, up over 333 basis points from March 31, 2009.

Other significant moves included the reduction of Other Real Estate Owned (OREO), which declined $4.39 million year-over-year, and non-interest expense, which dropped $559,000. The bank also reduced its interest expense by $381,000 as of March 31, 2010, compared to Q1 2009, which helped boost its net interest margin to a solid 4.82%.

Total assets at Desert Commercial Bank stood at $138,403,000 at quarter-end, while deposits were at $121,558,000. The banka™s loan-to-deposit ratio finished the period at 86.45%.

aBy virtually any meaningful measure, we have made tremendous strides in increasing the value of our banking franchise,a said Tony Swartz, Desert Commercial Bank President & CEO. aIta™s truly been a total team effort, with Directors, Management and Employees all making major contributions. I could not be more proud of what wea™ve achieved, and the best, I firmly believe, is yet to come.a

Certain statements in this letter, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995).Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied.These risks and uncertainties include, but are not limited to, risks related to raising additional capital, the local and national economy, the Bank's performance and implementation of its business plans, loan performance, interest rates, and regulatory matters.