Year-end financial numbers at Desert Commercial Bank (OTCBB:DCBC) show the bank posting net income in excess of $106,000. The modest annual profit is the first in the community bank's five-and-a-half year history.

Total earnings in 2010 surged more than $4.12 million over 2009. Non-interest expense dropped by $2.751 million and a $696,000 reduction in loan loss reserves over the 12-month period contributed to the strong performance.

Other highlights included a favorable interest rate spread of $702,000, as well as a $7.3 million increase in deposits. Loans also jumped by $10.345 million. Total non-accrual loans as of 12/31/10 totaled slightly more than $11 million, consisting of four credits.

Desert Commercial Bank President and CEO Tony Swartz said, ?DCB continues to look forward to a bright future in what everyone recognizes remain challenging times.?

A summary of the Desert Commercial Bank's financial position as of December 31, 2010, can be found in the table below:

Fourth Quarter 2010

Financial Highlights (in 000's)

      2010       2009     Variance
Assets     $ 147,604       $ 140,967     $ 6,637  
Loans       115,672         105,327       10,345  
Deposits       130,878         123,576       7,302  
Capital       16,256         16,048       208  
Loan Loss Reserve       2,187         2,883       (696 )
Non-Accrual Loans       11,040         1,204       9,820  
Other Real Estate Owed       2,209         2,209       ------  
                             
Net Interest Spread       6,615         5,913       702  
Loan Loss Provision       958         1,390       (432 )
Non-Interest Expense       6,348         9,099       (2,751 )
Net Income       106         (4,021 )     4,127  
                             
Tier One Leverage       11.09         11.32      

(.23

)

Tier One Risk Based Capital       13.13         13.88      

(.75

)

Total Risk-Based Capital       14.39         15.15      

(.76

)

           

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.

For Desert Commercial Bank
Michael Shepherd
760-340-9300
michael@theshepherdgroup.com