CORNELIUS, NC - February 6, 2009-- Aquesta Bank announced today record operating earnings for the fourth quarter ending December 31, 2008. For the fourth quarter, Aquesta Bank achieved unaudited net income of $194,000 compared to a net loss of $209,000 for the fourth quarter of 2007. Fourth quarter operating income is Aquesta’s third consecutive quarter with an operating profit.
Net interest income for 2008 was $4.5 million compared to $2.7 million for 2007, an increase of $1.8 million. In comparison, non interest expense only increased $1.3 million to $4.3 million for all of 2008 compared to $3.0 million for 2007.
Aquesta Bank reports continued growth in loans and deposits and its loan portfolio continues to perform well. Assets grew to $176.9 million at the end of 2008 as compared to $109.5 million at the end of 2007 and $171.9 million at the end of the third quarter of 2008. Loans grew to $129.0 million at the end of 2008 as compared to $75.9 million at the end of 2007 and $125.2 million at the end of the third quarter of 2008. Deposits continued to show strong growth reaching $143.9 million at the end of 2008 compared to the prior year of $83.1.
Management is closely monitoring its loan portfolio in whole and believes the current allowance for loan losses of 1.51% to total loans is adequate to absorb any losses inherent in the loan portfolio
Jim Engel, CEO and President of Aquesta Bank, commented that “As our core operating results continue to improve, we remain vigilant regarding the overall economy. We have seen stress in the system through increased loan delinquencies and a general decrease in loan volumes. While we have money to lend, many businesses have reduced or eliminated spending plans. Consequently, we are maintaining very strict cost controls to improve profitability despite slowing economic activity.”
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 a branch in Cornelius and Davidson and has a loan production office in Denver, NC.
For additional information, please contact Cathy O’Nan or Jim Engel 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.