Desert Commercial Bank Bought Out

First Foundation Bank has acquired Desert Commercial Bank, which has a Palm Desert branch, for about $16 million.

Desert Commercial Bank, which has been working on a turnaround, had $153 million in assets as of March 31.

According to Scott F. Kavanaugh, chairman and chief executive officer of First Foundation Bank, said the purchase allows the bank to strengthen its investment in the Coachella and Imperial valleys.

“Financially, we expect that DCB's core deposits will help us grow our net interest margin and, since this is essentially an all stock transaction, we believe this combination will increase our tangible book value,” Kavanaugh said.

The merger, which is subject to the approval of shareholders and the receipt of bank regulatory and other governmental approvals, was expected to close by the end of the year, he said.

Desert Commercial Bank also has a branch in El Centro.

City News Service contributed to this report.