FOR IMMEDIATE RELEASE:
Aquesta Bank Announces Record Operating Results
For the Second Quarter of 2012
CORNELIUS, NC – July 20, 2012 -- Aquesta Bank and Subsidiaries (“Aquesta”) announced today record operating income for the second quarter of 2012 (three month period ending June 30, 2012). For the second quarter of 2012, Aquesta had unaudited net income of $304,000 compared to net income of $29,000 for the second quarter of 2011. These quarterly results represent the best results since Aquesta Bank was chartered in August of 2006.
Net interest income for the second quarter of 2012 increased to $1.86 million from $1.76 million for the same period of 2011. This increase was largely due to improved net interest margins partially offset with lower loan volume. For the six months ended June 30, 2012, net income was $450,000 versus net income in the same period of 2011 of a loss of $147,000.
Aquesta Bank’s total assets decreased to $194.5 million at June 30, 2012 compared to $199.2 million at December 31, 2011 or a decrease of 2.3 percent. Total loans decreased to $110.0 million at June 31, 2012 from $115.9 million at December 31, 2011, or 5.1 percent. Lastly, total deposits were $152.6 million at June 30, 2012 from $157.0 million at December 31, 2011 or a decrease of 2.8 percent.
Loan loss provisions in the second quarter of 2012 were $75,000 compared to the same quarter of 2011 of $415,000. Allowance for loan losses were $2.0 million as of June 30, 2012 compared to $1.8 million at December 31, 2011. The increase in loan loss reserves greater than actual provisions during the quarter reflects the recoveries of certain prior year write downs on loans.
CEO and President of Aquesta Bank, Jim Engel, stated “We are very pleased to report record earnings for Aquesta. Although we have a lot of work ahead of us, our operating income, core deposit growth and asset quality all reflect tremendous improvement since the lows of the recession.”
Engel noted that “Aquesta Bank has seen limited loan demand but continued good core deposit growth. Our insurance agency revenue has begun to accelerate and loan losses have decreased. All of these factors are benefiting Aquesta’s operating results. Our two goals this year are pretty straight forward: improve earnings and improve asset quality. We are off to a good start but will continue to monitor risks in the economy closely.”
Jim continued, “Our NPAs (Non Performing Assets) as a percentage of total assets are now substantially below the median for North Carolina banks. Improving asset quality should eventually translate to lowered costs. Also, while overall deposits are down, it is very gratifying to see a substantial increase in our core deposits. Core deposits represent local /existing customers who are choosing to increase their banking relationship with Aquesta.”
Aquesta also provided the following financial highlights for comparison:
*ALLL is the Allowance for Loan and Lease Losses
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.