CORNELIUS, NC – October 22, 2009 -- Aquesta Bank announced today positive operating earnings for the third quarter ending September 30, 2009. For the third quarter of 2009, Aquesta Bank achieved unaudited net income of $182,000 compared to loss of $728,000 for the third quarter of 2008. Year to date net income through September 2009 was $435,000 compared to a net loss $1,032,000 for the same period in 2008. In the third quarter of 2008, Aquesta Bank wrote down its investment in Fannie Mae and Freddie Mac preferred stock with a noncash valuation charge of $792,000 net of associated tax benefits.
Total assets increased to $185.5 million at September 30, 2009 compared to $171.9 million at September 30, 2008 or a growth rate of 7.9 percent. Total loans increased to $136.7 million from $125.2 million at September of 2008 or 9.2 percent growth. Lastly, total deposits were $150.5 million at September 30, 2009 from $142.7 million at September 30, 2008 or growth of 5.5 percent.
Net interest income for the first nine months of 2009 was $4.0 million compared to $3.3 million for the first nine months of 2008, an increase of $700 thousand. Operating expenses of $3.5 million for the first nine months of 2009 were up $200,000 from the same period in 2008 when such expenses were $3.3 million.
Jim Engel, CEO and President of Aquesta Bank, commented that “Our results are improved over the prior year. This is reflective of the hard work of our staff and the loyalty of our customers. We’ve experienced a slowdown in growth that was both expected and beneficial while profitability has continued to improve. Our improvements in net interest margins have more than offset higher costs that are largely attributable to increases in FDIC insurance premiums that are being assessed to the industry.”
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 and Davidson. Aquesta also broke ground last quarter for its Mooresville branch which is tentatively scheduled to open in December 2009.
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.