Aquesta Bank and Subsidiaries (“Aquesta”) announced today an operating loss for the first quarter of 2011 (period ending March 31, 2011). For the first quarter of 2011, Aquesta had an unaudited net operating loss of $176,000 compared to net income of $231,000 for the first quarter of 2010. Net interest income for the first quarter of 2011 was $1.70 million compared to $1.67 million for the same period of 2010. This small increase was largely due to improved net interest margins partially offset with lower loan volume.
Aquesta Bank’s total assets increased to $200.6 million at March 31, 2011 compared to $195.5 million at December 31, 2010 or a growth rate of 2.6 percent. Total loans decreased to $124.8 million from $126.2 million at December 31, 2010 or 1.1 percent decrease. Lastly, total deposits were $155.0 million at March 31, 2011 from $150.7 million at December 31, 2010 or growth of 2.9 percent. Loan loss provisions in the first quarter of 2011 were $530,000 compared to the same quarter of 2010 provisions of $140,000. This increase in the loan loss provisions essentially explains the difference in operating results between the two periods.
Jim Engel, CEO and President of Aquesta Bank, commented that “While we are pleased that Aquesta Bank has continued to increase market share as evidenced by its deposit growth, we continue to experience weak loan demand and heightened loan losses. Recently we have seen some improvement in the overall economy. Unfortunately, it will take some time for those improvements to translate directly to improved operating results. In the meantime, we will continue to focus on our growth strategy, including targeted hiring and strategic branch expansions. We remain cautious; however, as there are substantial uncertainties remaining in the market, including major national legislative actions, huge government deficits, expiring stimulus initiatives and significant weakness in construction related activities.”
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 Mooresville. Aquesta Bank’s branch expansion efforts are continuing with of our newest branch on Brawley School Road in Mooresville near The Farms and The Pointe subdivisions. It is expected to open in June.
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.