The capital raise ensures the community bank remains well-capitalized and precludes the need for accepting any government funding — including the controversial TARP monies or similar subsidies.
With the infusion of new capital, which totaled $5,318,895, total shareholder equity now stands at $16.048 million. Also, Desert Commercial Bank issued 354,593 warrants, with the potential, if exercised, to add $2,304,854 to $2,570,799 in new equity.
The successful capital raise increased Desert Commercial Bank’s outstanding common shares from 2,231,956 to 4,004,921. Year-end book value per share stood at $4.01, while recent market price has ranged between $2.75 and $3 per share.
President and Chief Executive Officer Tony Swartz called the completed offering a “game-changer” in terms of the bank’s future growth.
“This new capital not only strengthens our existing balance sheet, but it serves as the fuel that will power us well into the future — particularly in terms of asset growth,” Swartz said. “We will put much of that money to work by making quality loans to the many businesses across Riverside and Imperial County that are looking to expand in this recovering economy.”
As of Dec. 31, Desert Commercial Bank reported total assets of $140,968,000. Outstanding loans totaled $105,327,000, while deposits reached $123,577,000