ASHEVILLE, N.C., July 24 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (BULLETIN BOARD: WFSC) reported record consolidated net income totaled $434 thousand for the three months ended June 30, 2009 compared to $282 thousand for the comparable period in 2008 - an increase of 54%. On a diluted per share basis, earnings for the three-month periods of 2009 and 2008 increased 58% from $.12 per share to $.19. For the six-month periods ended June 30, 2009, net income remained flat at $658 thousand. On a diluted per share basis, earnings for the six-month periods ended June 30, 2009 and 2008, respectively, were $.29 and $.29. The increased performance in earnings was primarily attributable to improved net interest income resulting from growth in net earning assets and lower liability cost.
Consolidated assets on June 30, 2009, increased 22% over June 30, 2008 to a record level of $223.5 million. Total loans on June 30, 2009 were $180.6 million - an increase of 22% from the level reported a year earlier. Deposits reflected 26% growth to $195.4 million at June 30, 2009 compared to the prior year, and shareholders' equity increased 10% from June 30, 2008 to $17.4 million at June 30, 2009.
Return on assets was .80% compared to .64%, and return on equity was 10.02% compared to 7.14% for the three-month periods ended June 30, 2009 and 2008, respectively. For the six-month periods ended June 30, 2009 and 2008, respectively, return on assets was .62% compared to .76%, and return on equity was 7.75% compared to 8.59%.
"We are pleased with our steady growth and improved earnings through the second quarter given the economic conditions our economy has faced. During this period, the Federal Deposit Insurance Corporation in an effort to strengthen the insurance fund, increased premiums, and had a special assessment for all banks in the second quarter of 2009. The result of this action by the FDIC was that our premiums went from $49,000 to $246,000 for the six months ended June 30, 2009. Given this large and unbudgeted expense item, we are pleased with our performance and proud to be one of the few banks earning a BauerFinancial 5-Star rating," said G. Gordon Greenwood, President and Chief Executive Officer.
Weststar Financial Services Corporation is the parent company of The Bank of Asheville. Weststar Financial Services Corporation owns 100% interest in Weststar Financial Services Corporation I, a statutory trust. The Bank operates five full-service banking offices in Buncombe County, North Carolina - Downtown Asheville, Candler, Leicester, South Asheville and Reynolds.
This news release contains forward-looking statements. Such statements are subject to certain factors that may cause the company's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute our business plan, items already mentioned in this press release, and other factors described in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Weststar Financial Services Corporation & Subsidiary Selected Financial Data Three Months Ended June 30, 2009 2008 %change ------------------------------------------- Consolidated earning summary: Interest income $3,236,606 $2,895,378 11.8% Interest expense 1,153,254 1,185,292 -2.7% ------------------------------ Net interest income 2,083,352 1,710,086 21.8% Provision for loan losses 221,310 150,680 46.9% ------------------------------ Net interest income after provision for loan losses 1,862,042 1,559,406 19.4% Other income 464,591 415,849 11.7% Other expenses 1,688,876 1,563,388 8.0% ------------------------------ Income before taxes 637,757 411,867 54.9% Income taxes 203,888 129,384 57.6% ------------------------------ Net income $433,869 $282,483 53.6% ============================== Earnings per share - Basic $0.20 $0.13 53.9% Earnings per share - Diluted 0.19 0.12 58.3% ------------------------------ Average Shares - Basic 2,146,132 2,119,461 1.3% Average Shares - Diluted 2,257,363 2,279,884 -1.0% -------------------------------------------------------------------------- Consolidated balance sheet data: Total Assets Total Deposits Loans (gross) Investments Shareholders' Equity -------------------------------------------------------------------------- Consolidated average balance sheet data: Total Assets $217,599,672 $178,016,532 22.2% Total Deposits 189,745,214 151,838,703 25.0% Loans (gross) 177,779,049 141,392,197 25.7% Investments 23,142,396 26,011,589 -11.0% Shareholders' Equity 17,374,418 15,920,103 9.1% -------------------------------------------------------------------------- Consolidated performance ratios: Return on average assets* 0.80% 0.64% Return on average equity* 10.02% 7.14% Capital to Assets 7.98% 8.94% -------------------------------------------------------------------------- Consolidated asset quality data and ratios: Nonaccruing and restructured loans Accruing loans 90 days past due Nonperforming loans Foreclosed properties Nonperforming assets Allowance for loan losses Loans charged off Recoveries of loans charged off Net loan charge-offs Net charge-offs to average loans* Nonperforming loans to total assets Allowance coverage of nonperforming loans Allowance for loan losses to gross loans *Annualized based on number of days in the period. Six Months Ended June 30, 2009 2008 %change ------------------------------------------- Consolidated earning summary: Interest income $6,300,268 $5,975,791 5.4% Interest expense 2,346,327 2,532,424 -7.4% ------------------------------ Net interest income 3,953,941 3,443,367 14.8% Provision for loan losses 475,890 188,125 153.0% ------------------------------ Net interest income after provision for loan losses 3,478,051 3,255,242 6.8% Other income 872,798 790,883 10.4% Other expenses 3,384,764 3,032,980 11.6% ------------------------------ Income before taxes 966,085 1,013,145 -4.6% Income taxes 308,273 342,525 -10.0% ------------------------------ Net income $657,812 $670,620 -1.9% ============================== Earnings per share - Basic $0.31 $0.32 -3.1% Earnings per share - Diluted 0.29 0.29 0.0% ------------------------------ Average Shares - Basic 2,140,937 2,119,209 1.0% Average Shares - Diluted 2,241,744 2,279,723 -1.7% -------------------------------------------------------------------------- Consolidated balance sheet data: Total Assets $223,524,119 $182,923,687 22.2% Total Deposits 195,449,346 155,212,188 25.9% Loans (gross) 180,614,075 148,338,170 21.8% Investments 22,998,342 25,076,449 -8.3% Shareholders' Equity 17,401,159 15,782,299 10.3% -------------------------------------------------------------------------- Consolidated average balance sheet data: Total Assets $212,405,828 $176,669,664 20.2% Total Deposits 183,766,075 150,721,313 21.9% Loans (gross) 175,484,914 139,234,303 26.0% Investments 23,385,482 26,190,687 -10.7% Shareholders' Equity 17,117,109 15,698,508 9.0% -------------------------------------------------------------------------- Consolidated performance ratios: Return on average assets* 0.62% 0.76% Return on average equity* 7.75% 8.59% Capital to Assets 8.06% 8.89% -------------------------------------------------------------------------- Consolidated asset quality data and ratios: Nonaccruing and restructured loans $3,020,257 $187,157 1513.8% Accruing loans 90 days past due - - 0.0% ------------------------------ Nonperforming loans 3,020,257 187,157 1513.8% Foreclosed properties 243,006 51,006 376.4% ------------------------------ Nonperforming assets 3,263,263 238,163 1270.2% ------------------------------ Allowance for loan losses 2,847,508 2,252,385 26.4% ------------------------------ Loans charged off 178,996 46,811 282.4% Recoveries of loans charged off 20,633 20,946 -1.5% ------------------------------ Net loan charge-offs 158,363 25,865 512.3% ------------------------------ Net charge-offs to average loans* 0.18% 0.04% 350.0% Nonperforming loans to total assets 1.35% 0.10% 1250.0% Allowance coverage of nonperforming loans 94.28% 1203.47% -92.2% Allowance for loan losses to gross loans 1.58% 1.52% 4.0% -------------------------------------------------------------------------- *Annualized based on number of days in the period. Weststar Financial Services Corporation & Subsidiary Supplemental Quarterly Financial Data Quarters Ended Jun 30, Mar 31, Dec 31, 2009 2009 2008 -------------------------------------------------------------------------- Consolidated earning summary: Interest income 3,236,606 3,063,662 $3,171,825 Interest expense 1,153,254 1,193,073 1,270,829 --------------------------------------------------- Net interest income 2,083,352 1,870,589 1,900,996 Provision for loan losses 221,310 254,580 202,525 --------------------------------------------------- Net interest income after provision for loan losses 1,862,042 1,616,009 1,698,471 Other income 464,591 408,207 407,609 Other expenses 1,688,876 1,695,888 1,620,863 --------------------------------------------------- Income before taxes 637,757 328,328 485,217 Income taxes 203,888 104,385 203,529 --------------------------------------------------- Net income $433,869 $223,943 $281,688 =================================================== Earnings per share - Basic $0.20 $0.10 $0.13 Earnings per share - Diluted 0.19 0.10 0.12 --------------------------------------------------- Average Shares - Basic 2,146,132 2,136,837 2,124,622 Average Shares - Diluted 2,257,363 2,251,225 2,253,846 -------------------------------------------------------------------------- Consolidated balance sheet data: Total Assets $223,524,119 $214,202,340 $202,858,972 Total Deposits 195,449,346 186,453,881 170,814,106 Loans (gross) 180,614,075 175,006,653 171,239,692 Investments 22,998,342 23,518,059 23,778,449 Shareholders' Equity 17,401,159 16,971,583 16,510,571 -------------------------------------------------------------------------- Consolidated average balance sheet data: Total Assets $217,599,672 $207,155,031 $197,854,734 Total Deposits 189,745,214 177,720,929 170,545,425 Loans (gross) 177,779,049 173,165,289 165,675,893 Investments 23,142,396 23,631,269 23,695,793 Shareholders' Equity 17,374,418 16,856,942 16,149,305 -------------------------------------------------------------------------- Consolidated performance ratios: Return on average assets* 0.80% 0.42% 0.57% Return on average equity* 10.02% 5.23% 6.94% Capital to Assets 7.98% 7.98% 8.16% -------------------------------------------------------------------------- Consolidated asset quality data and ratios: Nonaccruing and restructured loans 3,020,257 1,782,322 $316,102 Accruing loans 90 days past due - - - --------------------------------------------------- Nonperforming loans 3,020,257 1,782,322 316,102 Foreclosed properties 243,006 205,006 205,006 --------------------------------------------------- Nonperforming assets 3,263,263 1,987,328 521,108 --------------------------------------------------- Allowance for loan losses 2,847,508 2,677,865 2,529,981 --------------------------------------------------- Loans charged off 61,303 117,693 36,759 Recoveries of loans charged off 9,636 10,997 8,971 --------------------------------------------------- Net loan charge-offs 51,667 106,696 27,788 --------------------------------------------------- Net charge-offs to average loans* 0.12% 0.25% 0.07% Nonperforming loans to total assets 1.35% 0.83% 0.16% Allowance coverage of nonperforming loans 94.28% 150.25% 800.37% Allowance for loan losses to gross loans 1.58% 1.53% 1.48% -------------------------------------------------------------------------- * Annualized based on number of days in the period. Quarters Ended Sept 30, Jun 30, 2008 2008 -------------------------------------------------------------------------- Consolidated earning summary: Interest income $3,080,208 $2,895,378 Interest expense 1,180,997 1,185,292 --------------------------------------------------- Net interest income 1,899,211 1,710,086 Provision for loan losses 320,635 150,680 --------------------------------------------------- Net interest income after provision for loan losses 1,578,576 1,559,406 Other income 425,618 415,849 Other expenses 1,478,381 1,563,388 --------------------------------------------------- Income before taxes 525,813 411,867 Income taxes 176,809 129,384 --------------------------------------------------- Net income $349,004 $282,483 =================================================== Earnings per share - Basic $0.16 $0.13 Earnings per share - Diluted 0.15 0.12 --------------------------------------------------- Average Shares - Basic 2,122,147 2,119,461 Average Shares - Diluted 2,273,388 2,279,884 -------------------------------------------------------------------------- Consolidated balance sheet data: Total Assets $193,073,062 $182,923,687 Total Deposits 166,519,486 155,212,188 Loans (gross) 157,724,566 148,338,170 Investments 23,681,294 25,076,449 Shareholders' Equity 15,783,148 15,782,299 -------------------------------------------------------------------------- Consolidated average balance sheet data: Total Assets $185,946,806 $178,016,532 Total Deposits 159,510,362 151,838,703 Loans (gross) 152,497,479 141,392,197 Investments 24,553,284 26,011,589 Shareholders' Equity 15,892,539 15,920,103 -------------------------------------------------------------------------- Consolidated performance ratios: Return on average assets* 0.75% 0.64% Return on average equity* 8.74% 7.14% Capital to Assets 8.55% 8.94% -------------------------------------------------------------------------- Consolidated asset quality data and ratios: Nonaccruing and restructured loans $82,693 $187,157 Accruing loans 90 days past due - - --------------------------------------------------- Nonperforming loans 82,693 187,157 Foreclosed properties 227,407 51,006 --------------------------------------------------- Nonperforming assets 310,100 238,163 --------------------------------------------------- Allowance for loan losses 2,355,244 2,252,385 --------------------------------------------------- Loans charged off 236,362 16,909 Recoveries of loans charged off 18,587 7,956 --------------------------------------------------- Net loan charge-offs 217,775 8,953 --------------------------------------------------- Net charge-offs to average loans* 0.57% 0.03% Nonperforming loans to total assets 0.04% 0.10% Allowance coverage of nonperforming loans 2848.18% 1203.47% Allowance for loan losses to gross loans 1.49% 1.52% -------------------------------------------------------------------------- * Annualized based on number of days in the period.
Weststar Financial Services Corporation
CONTACT: Randall C. Hall, Executive Vice President and Secretary, Chief
Financial Officer, +1-828-232-2904, +1-828-350-3904 (Fax),
rhall@bankofasheville.com
Web Site: http://www.bankofasheville.com/
