Aquesta Bank

Aquesta Bank Announces 3rd Quarter 2012 Results

October 19, 2012 | view all news items

Aquesta Bank Announces Record Third Quarter Results
 
CORNELIUS, NC – October 19, 2012 -- Aquesta Bank and Subsidiaries (“Aquesta”) announced today its second consecutive quarter of record operating income.  For the third quarter of 2012 (three month period ending September 30, 2012), Aquesta had unaudited net income of $315,000 (14 cents per share) compared to net loss of $859,000 for the third quarter of 2011.  Year to date net income for 2012 is $765,000 (36 cents per share) versus a loss during the same nine month period in 2011 of $1,006,000. These results surpass the record established in the second quarter of 2012 when net income was $304,000. 

Net interest income for the third quarter of 2012 decreased to $1.70 million from $1.81 million for the same period of 2011. This decrease was largely due to lower loan volume.
 
Aquesta Bank’s total assets decreased to $197.6 million at September 30, 2012 compared to $199.2 million at December 31, 2011 or a decrease of 0.8 percent. Total loans decreased to $106.0 million at September 31, 2012 from $115.9 million at December 31, 2011, or 8.5 percent.  Lastly, total deposits were $154.6 million at September 30, 2012 from $157.0 million at December 31, 2011 or a decrease of 1.5 percent. However, core deposits increased to $66.4 million at September 30, 2012 from $60.3 million at December 31, 2011 or an increase of 10.1 percent.
 
Aquesta booked a loan loss provision of $25,000 in the third quarter of 2012 compared to $1,660,000 recorded in the same quarter of 2011.  This reduction in provision expense reflects the significant improvements made in asset quality. Allowance for loan losses were $2.0 million as of September 30, 2012 compared to $1.8 million at December 31, 2011.    
 
CEO and President of Aquesta Bank, Jim Engel, stated “We are very pleased to report Aquesta’s second consecutive quarter of record earnings.  As noted in the prior quarter, we remain focused on improving asset quality and earnings. During the quarter, we saw a significant improvement in the level of non-performing assets with no non-accrual loans at the end of the quarter. Now we will focus on reducing our level of Other Real Estate Owned (i.e., foreclosed property). 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.”
 


Aquesta also provided the following financial highlights for comparison:

  9/30/12   12/31/11
  unaudited   audited
  (dollars in thousands)
Financial Highlights      
       
Total Assets    197,573        199,157
Total Loans    105,962        115,931
Total Core Deposits      66,393          60,308
       
NPAs as a % of Assets          1.18              4.27
ALLL* as a % of Loans          1.90              1.56
Book Value Per Share        10.57              9.61
       
  9/30/12   9/30/11
  YTD   YTD
Non Interest Income        2,063            1,588
Net Interest Income        5,289            5,250
Provision for Loan Losses           525            2,605
Net Income           765           (1,006)
Earnings Per Share          0.36             (0.47)

 
*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.

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