FOR IMMEDIATE RELEASE:
Aquesta Bank Announces Operating Results
For the First Quarter of 2012
CORNELIUS, NC – April 23, 2012 -- Aquesta Bank and Subsidiaries (“Aquesta”) announced today operating income for the first quarter of 2012 (three month period ending March 31, 2012). For the first quarter of 2012, Aquesta had unaudited net income of $146,000 compared to net loss of $176,000 for the first quarter of 2011. Net interest income for the first quarter of 2012 increased to $1.77 million from $1.69 million for the same period of 2011. This increase was largely due to improved net interest margins partially offset with lower loan volume.
Aquesta Bank’s total assets increased to $199.9 million at March 31, 2012 compared to $199.2 million at December 31, 2011 or an annualized growth rate of 1.4 percent. Total loans decreased to $115.7 million at March 31, 2012 from $115.9 million at December 31, 2011, or 0.6 percent annualized. Lastly, total deposits were $155.0 million at March 31, 2012 from $157.0 million at December 31, 2011 or a decrease of 5.0 percent on an annualized basis. Loan loss provisions in the first quarter of 2012 were $425,000 compared to the same quarter of 2011 of $530,000. Allowance for loan losses were $1.7 million as of March 31, 2012 compared to $1.8 million at December 31, 2011.
Jim Engel, CEO and President of Aquesta Bank, notes that “Aquesta Bank continues to see weak loan demand but good core deposit growth.” Engel noted that the overall decrease in deposits was related to a decrease in higher rate certificates of deposit which were largely replaced by good core deposit growth. “In fact, core deposits grew by almost 20 percent on an annualized basis during the first quarter. The continued growth of core deposits is benefiting the bank through better interest margins. As noted in prior press releases, Aquesta is well positioned for continued economic weakness but is also prepared to resume its prior growth pattern when the local economy improves.”
Jim Engel commented that “We are pleased that we have made substantial progress in reducing costs and further strengthening the balance sheet. While there are some signs of improvement in the local economy, we are committed to remaining conservative until the picture becomes clearer. Such conservatism has resulted in improved operating profits during this first quarter.”
Aquesta Bank and its subsidiaries, Board of Directors and employees, would like to thank all of our customers for your business. Your support has been a major factor in Aquesta’s success over the last few years. Your continued support is greatly appreciated.
Aquesta Bank is a commercial bank which serves the Lake Norman market with a focus on small to medium sized businesses and professionals. The Bank operates branches in Cornelius, Davidson and two in Mooresville. Aquesta Bank’s wholly owned independent insurance agency (Aquesta Insurance Services, Inc.) has offices in Cornelius, Concord, Mooresville and Wilmington.
For additional information, please contact Kristin Parsons (Executive Vice President and Chief Financial Officer) or Jim Engel (Chief Executive Officer and President) at 704-439-4343 or visit us online at www.aquesta.com.
Information in this press release may contain forward looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.