FOR IMMEDIATE RELEASE:
Aquesta Bank Announces Operating Results
For the Fourth Quarter of 2011
CORNELIUS, NC – January 26, 2012 -- Aquesta Bank and Subsidiaries (“Aquesta”) announced today operating income for the fourth quarter of 2011 (three month period ending December 31, 2011). For the fourth quarter of 2011, Aquesta had an unaudited net income of $78,000 compared to net income of $2,000 for the fourth quarter of 2010. Net interest income for the fourth quarter of 2011 increased to $1.8 million from $1.6 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 $198.9 million at December 31, 2011 compared to $195.5 million at December 31, 2010 or an increase of 1.7 percent. Total loans decreased to $115.9 million at December 31, 2011 from $126.2 million at December 31, 2010 or 8.2 percent decrease. Lastly, total deposits were $157.0 million at December 31, 2011 from $150.7 million at December 31, 2010 or growth of 4.2 percent. Loan loss provisions in the fourth quarter of 2011 were $600,000 compared to the same quarter of 2010 provisions of $956,000. Allowance for loan losses were $1.8 million as of December 31, 2011 compared to $1.2 million at December 31, 2010.
Jim Engel, CEO and President of Aquesta Bank, notes that “Aquesta Bank continues to see weak loan demand but good core deposit growth.” Engel continued stating that “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 should result in improved operating profits over time.”
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.