Bank growth continues, earnings reports from Aquesta, Uwharrie


April 26. Net income at Aquesta Financial Holdings fell 26 percent during the first quarter of 2016, but the parent company of Aquesta Bank is on a growth streak, having invested in the Charlotte market during the past year.

“Expansion costs must be incurred prior to revenue recognition. For example, the bank’s investment in lenders is always a loss leader until such time as the related loan portfolio grows enough to cover the associated payroll costs. Based on our recent extraordinary loan growth, I believe the growth in interest income will more than offset the increase in non-interest expense in the near-term,” CEO Jim Engel said.

Aquesta’s SouthPark branch opened in July last year; a branch in Wilmington will open in the next couple of months. The number of employees has increased 32 percent, from 63 at the end of the first quarter of 2015 to 83 as of March 31 this year.

Net income for the three months ended March 31 was $368,000, compared to $500,000 during the first quarter of 2015. To view Aquesta’s earnings report, click here.

“I’m very pleased with our loan growth that far exceeds industry norms and I’m also satisfied Aquesta was able to achieve this growth with minimal impact on continuing earnings,” Engel said.

Quarter over quarter loan growth, from $195.6 million last year to $205.3 million this year, annualizes at the rate of 20 percent.


At Uwharrie Capital Corp., parent company of Uwharrie Bank, first-quarter net income was $510,000 vs. $637,000 during the first quarter of 2015. Net income available to common shareholders was $363,000 compared to $491,000 during the same year-ago quarter. The decline in earnings reflects the additional costs associated with the development of Uwharrie Bank Mortgage.


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