Aquesta Bank Announces Operating Results
For the Third Quarter of 2011
CORNELIUS, NC – October 31, 2011 -- Aquesta Bank and Subsidiaries (“Aquesta”) announced today operating loss for the third quarter of 2011 (three month period ending September 30, 2011). For the third quarter of 2011, Aquesta had an unaudited net loss of $859,000 compared to net income of $124,000 for the third quarter of 2010. Net interest income for the third quarter of 2011 increased to $1.81 million from $1.71 million for the same period of 2010. This increase was largely due to improved net interest margins partially offset with lower loan volume.
Aquesta Bank’s total assets increased to $207.5 million at September 30, 2011 compared to $195.5 million at December 31, 2010 or a growth rate of 6.1 percent. Total loans decreased to $124.5 million at September 30, 2011 from $126.2 million at December 31, 2010 or 1.3 percent decrease. Lastly, total deposits were $161.4 million at September 30, 2011 from $150.7 million at December 31, 2010 or growth of 7.1 percent. Loan loss provisions in the third quarter of 2011 were $1.6 million compared to the same quarter of 2010 provisions of $250,000. Allowance for loan losses were $1.8 million as of September 30, 2011 compared to $1.2 million at December, 2010.
Jim Engel, CEO and President of Aquesta Bank, notes that “Aquesta Bank previously announced a layoff and other cost control / reduction initiatives. These initiatives started to benefit Aquesta in September and should be more pronounced in the fourth quarter. Despite the third quarter loss, Aquesta Bank remains above well capitalized levels as established by regulators and consequently will remain focused on continued growth in the Lake Norman area.”
Jim Engel commented that “While we are disappointed at the operating loss for the quarter, we have made good progress in further strengthening our balance sheet, resolving troubled loan situations and remaining focused on continued market expansion. At this point, we continue to see weakness in the local economy and have positioned our balance sheet through increased reserves and reduced cost structure to weather a prolonged economic slump. While I actually hope that we are being too pessimistic about the economy, it’s prudent to maintain a cautious viewpoint until we see evidence of actual economic improvement”
Aquesta Bank and its subsidiaries, Board of Directors and employees, would like to thank all of our deposit customers and loan customers that continue to do business with the organization during these difficult economic times. Your support has been a major factor in Aquesta’s profitability and growth 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 now 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.