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Deposits, Loans Grow at Desert Commercial Bank

^{Published on 2011-04-29 06:11:08 - Market Wire}
 

PALM DESERT, Calif.--([ BUSINESS WIRE ])--A $15 million year-over-year increase in deposits, combined with steady loan growth, highlighted first quarter 2011 numbers at Desert Commercial Bank (OTCBB:DCBC). The community bank, the only locally owned institution with branches in both Riverside and Imperial Counties, also posted sharp reductions in non-accrual loans during the first three months of the year.

Bank assets stood at $153.04 million as of March 31, 2011, a rise of more than $14.6 million, year-over-year. Lending activity remained solid, with Desert Commercial Bank ending Q1 2011 with $109,813,000 in total loans. That figure represents an increase of $4.7 million over March 31, 2010.

While overall loan volume grew, the bank further strengthened its balance sheet by significantly reducing the total number of non-accrual loans in its portfolio. Since December 31, 2010, those credits decreased by nearly $8.5 million and now stand at less than 2.3% of Desert Commercial Banka™s total loan portfolio.

Loan loss provisions for the first quarter 2011 increased by $253,000, year-over-year. Non-interest expense also rose by $299,000, reflecting higher legal and other specialized expertise associated with ongoing litigation, including costs required to resolve non-accrual loans. That expense, along with the additional loan loss provision contributed to negative quarterly earnings of $374,000.

Meanwhile, liquidity and capitalization remained strong at quarter end. As of March 31, 2011, Desert Commercial Banka™s loan-to-deposit ratio stood at 80.38 %, compared to 86.45% a year ago. Its capital ratios all rested comfortably above regulatory minimums, as reflected in the table below:

Certain statements in this press release, 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.