Oct. 15. Aquesta Financial Holdings reported third quarter net income rose 43% to $1 million from the same year-ago period. “We experienced another quarter of exciting growth in earnings, core deposits and loans. Our annualized 37.1 percent growth in core deposits continues to demonstrate our employees’ dedication to serving our customers and the community at-large,” said Jim Engel, CEO and president of Aquesta.

He hopes to continue the strong performance into the fourth quarter. During the third quarter last year, the Cornelius-based bank reported net income of $702,000

Highlights

• Total loan growth of $26.5 million for the first nine months of 2019 (annualized 9.6 percent).

• Total core deposit growth of $75.3 million for the first nine months of 2019 (annualized 37.1 percent).

• Earnings growth for the third quarter of 2019 compared to the third quarter of 2018 was 43.0 percent.

• Earnings per share growth year to date 2019 vs. prior year to date 2018 of 25.8 percent, exclusive of prior year one-time gain.

• Opened the Rea Farms branch, Aquesta’s eighth.

• Exceeded the $500 million in assets mark for the first time.

Solid Balance Sheet Growth

At September 30, 2019, Aquesta’s total assets were $505.0 million compared to $459.7 million at Dec. 31, 2018. Total loans were $395.6 million at Sept. 30, 2019 compared to $369.0 million at Dec. 31, 2018. Core deposits were $345.7 million at Sept. 30, this year compared to $270.4 million at Dec. 31, 2018.

Strong Asset Quality

Asset quality remains very strong. Nonperforming assets were at $1.2 million as of Sept. 30, 2019 compared to $1.2 million at year-end 2018. Aquesta had $1.2 million in non-accrual loans as of Sept. 30, 2019 compared to $1.2 million at year-end 2018. The Company held no foreclosed real estate at the end of 3rd quarter 2019 or at the end of 4th quarter 2018.

Net Interest Income

Net interest income was $12.3 million as of Sept. 30, 2019 compared to $10.8 million as of Sept. 30, 2018. This is an increase of $1.5 million or 13.9%. The increase in net interest income continues to be directly associated with the Company’s continued loan growth.

Non Interest Income

Non interest income was $1.7 million for the nine months ended Sept. 30, 2019 compared to $3.2 million for the nine months ended Sept. 30, 2018. The decrease was due to higher gains on SBA loans sold during the first three quarters of 2018. Gains on SBA loan sales through Sept. 30, 2019 were approximately $305,000 compared to $981,000 as of Sept. 30, 2018. In addition, the decrease in Non Interest Income is due to the sale of Aquesta Insurance subsidiary in June 2018.

Non Interest Expense

Non interest expense was $9.5 million for the nine months ended Sept. 30, 2019 compared to $10.7 million for the nine months ended Sept. 30, 2018. Personnel expense was at $5.9 million as of Sept. 30, 2019 compared to $7.1 million as of Sept. 30, 2018. The decrease was primarily due to the sale of Aquesta Insurance subsidiary in June 2018.

Occupancy expense increased by $153,000 for the nine months ended Sept. 30 this year compared to the first nine months of 2018. The increase is primarily due to the addition of the Operations Center during the third quarter 2018. Aquesta had $18,000 in OREO gains for the nine months ended Sept. 30, 2019 compared to $2,000 in OREO gains for the nine months ended Sept. 30, 2018.