ASHEVILLE, N.C., April 8 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (BULLETIN BOARD: WFSC) today reported preliminary financial results for 2009. Consolidated assets increased 10.3% over December 31, 2008 to $223.7 million. Deposits for this period reflected a 15.4% increase to $197.1 million at December 31, 2009 over the prior year. Total loans on December 31, 2009 were $185.5 million representing an increase of 8.3% from the year earlier. Shareholders' equity increased 2.0% from December 31, 2008 to $16.8 million at December 31, 2009.
For the twelve months ended December 31, 2009 net loss totaled $73 thousand, which compared to net income of $1,301 thousand for December 31, 2008 or $(.03) and $.57, respectively, on a diluted per share basis.
For the three months ended December 31, 2009, consolidated net loss totaled $863 thousand compared to net income of $282 thousand for the comparable period in 2008 or $(.40) and $.12, respectively, on a diluted per share basis.
Earnings performance for both the quarter and year-to-date periods were impacted primarily by an aggressive increase in provision for loan losses as a result of growth in the loan portfolio, continued deterioration in the regional economic conditions as witnessed by our increased level of nonperforming loans, lower real estate values, charged-off loans, and our internal indicators reflecting increased past dues and troubled debt restructures.
Return on assets was (1.51%) compared to .57%, and return on equity was (18.99%) compared to 6.94% for the three-month periods ended December 31, 2009 and 2008, respectively. For the 12-month periods ended December 31, 2009 and 2008, respectively, return on assets was (0.03%) compared to .71%, and return on equity was (0.42%) compared to 8.20%.
"During the past year we worked to meet the loan needs of our community in a challenging economy. While there were signs that the national economy was improving, we saw continued deterioration in economic activity beginning in the fourth quarter and continuing through the winter. Because of these two primary factors, more of our customers were adversely impacted by the slower economy and the harsh winter. Thus, we increased our reserves and took a more aggressive approach in dealing with our problem assets, which directly impacted earnings. We continue to work to support our local community and to manage conservatively during this difficult period. As we have stated previously, this is and has been a long and deeper slow down in the economy, and it will take a longer time for correction. We will continue to provide the level of service that defines us as a community bank and will work with our customers through this extraordinary period," 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 December 31, 2009 2008 % change ---- ---- -------- Consolidated earning summary: Interest income $2,689,965 $3,171,825 -15.2% Interest expense 927,850 1,270,829 -27.0% ------- --------- Net interest income 1,762,115 1,900,996 -7.3% Provision for loan losses 1,873,495 202,525 825.1% --------- ------- Net interest income after provision for loan losses (111,380) 1,698,471 -106.6% Other income 446,532 407,609 9.6% Other expenses 1,798,294 1,620,863 11.0% --------- --------- Income (loss) before taxes (1,463,142) 485,217 -401.5% Income taxes (benefit) (600,485) 203,529 -395.0% Net income (loss) $(862,657) $281,688 -406.3% ========= ======== Basic net income (loss) per common share $(0.40) $0.13 -407.7% Diluted net income (loss) per common share (0.40) 0.12 -433.3% ----- ---- Average Shares - Basic 2,147,575 2,124,622 1.1% Average Shares - Diluted 2,147,575 2,253,846 -4.7% ------------------------ --------- --------- ---- Consolidated balance sheet data: Total Assets Total Deposits Loans (gross) Investments Shareholders' Equity -------------------- Consolidated average balance sheet data: Total Assets $226,535,958 $197,854,734 14.5% Total Deposits 198,443,652 170,545,425 16.4% Loans (gross) 186,053,433 165,675,893 12.3% Investments 22,238,326 23,695,793 -6.2% Shareholders' Equity 18,020,645 16,149,305 11.6% -------------------- ---------- ---------- ---- Consolidated performance ratios: Return on average assets* -1.51% 0.57% Return on average equity* -18.99% 6.94% Capital to Assets 7.95% 8.16% ----------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans Restructured loans Accruing loans 90 days past due Nonperforming loans Foreclosed properties Nonperforming assets Restructured loans not included in categories above 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 loans Nonperforming assets to total assets Allowance coverage of nonperforming loans Allowance for loan losses to gross loans ------------------------- Twelve Months Ended December 31, 2009 2008 % change ---- ---- -------- Consolidated earning summary: Interest income $12,197,941 $12,227,824 -0.2% Interest expense 4,316,749 4,984,250 -13.4% --------- --------- Net interest income 7,881,192 7,243,574 8.8% Provision for loan losses 3,218,400 711,285 352.5% --------- ------- Net interest income after provision for loan losses 4,662,792 6,532,289 -28.6% Other income 1,782,796 1,624,110 9.8% Other expenses 6,799,336 6,132,224 10.9% --------- --------- Income (loss) before taxes (353,748) 2,024,175 -117.5% Income taxes (benefit) (280,526) 722,863 -138.8% Net income (loss) $(73,222) $1,301,312 -105.6% ======== ========== Basic net income (loss) per common share $(0.03) $0.61 -104.9% Diluted net income (loss) per common share (0.03) 0.57 -105.3% ----- ---- Average Shares - Basic 2,144,658 2,121,308 1.1% Average Shares - Diluted 2,144,658 2,271,977 -5.6% ------------------------ --------- --------- ---- Consolidated balance sheet data: Total Assets $223,755,740 $202,858,972 10.3% Total Deposits 197,122,741 170,814,106 15.4% Loans (gross) 185,474,873 171,239,692 8.3% Investments 25,046,500 23,778,449 5.3% Shareholders' Equity 16,844,208 16,510,571 2.0% -------------------- ---------- ---------- --- Consolidated average balance sheet data: Total Assets $218,959,327 $184,321,441 18.8% Total Deposits 190,575,844 157,913,218 20.7% Loans (gross) 180,310,653 149,214,736 20.8% Investments 22,909,958 25,151,968 -8.9% Shareholders' Equity 17,517,808 15,860,596 10.5% -------------------- ---------- ---------- ---- Consolidated performance ratios: Return on average assets* -0.03% 0.71% Return on average equity* -0.42% 8.20% Capital to Assets 8.00% 8.60% ----------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $22,870,696 $268,053 8432.2% Restructured loans 2,591,289 48,049 5293.0% Accruing loans 90 days past due - - 0.0% --- --- Nonperforming loans 25,461,985 316,102 7955.0% Foreclosed properties 511,112 205,006 149.3% ------- ------- Nonperforming assets 25,973,097 521,108 4884.2% ---------- ------- Restructured loans not included in categories above 7,748,562 - 0.0% --------- --- Allowance for loan losses 3,512,263 2,529,981 38.8% --------- --------- Loans charged off 2,266,482 319,933 608.4% Recoveries of loans charged off 30,364 48,504 -37.4% ------ ------ Net loan charge-offs 2,236,118 271,429 723.8% --------- ------- Net charge-offs to average loans* 1.24% 0.18% 588.9% Nonperforming loans to total loans 13.73% 0.18% 7527.8% Nonperforming assets to total assets 11.61% 0.26% 4418.7% Allowance coverage of nonperforming loans 13.79% 800.37% -98.3% Allowance for loan losses to gross loans 1.89% 1.48% 27.7% ---------------------- ---- ---- ---- *Annualized based on number of days in the period. Weststar Financial Services Corporation & Subsidiary Supplemental Quarterly Financial Data Quarters Ended Dec 30, Sept 30, Jun 30, 2009 2009 2009 ---- ---- ---- Consolidated earning summary: Interest income $2,689,965 $3,207,708 $3,236,606 Interest expense 927,850 1,042,572 1,153,254 ------- --------- --------- Net interest income 1,762,115 2,165,136 2,083,352 Provision for loan losses 1,873,495 869,015 221,310 --------- ------- ------- Net interest income after provision for loan losses (111,380) 1,296,121 1,862,042 Other income 446,532 463,466 464,591 Other expenses 1,798,294 1,616,278 1,688,876 --------- --------- --------- Income (loss) before taxes (1,463,142) 143,309 637,757 Income taxes (benefit) (600,485) 11,686 203,888 -------- ------ ------- Net income (loss) $(862,657) $131,623 $433,869 ========= ======== ======== Basic net income (loss) per common share $(0.40) $0.06 $0.20 Diluted net income (loss) per common share (0.39) 0.06 0.19 ----- ---- ---- Average Shares - Basic 2,147,575 2,146,817 2,146,132 Average Shares - Diluted 2,209,253 2,244,029 2,257,363 ------------------------ --------- --------- --------- Consolidated balance sheet data: Total Assets $223,755,740 $223,587,462 $223,524,119 Total Deposits 197,122,741 195,756,057 195,449,346 Loans (gross) 185,474,873 185,441,835 180,614,075 Investments 25,046,500 22,414,711 22,998,342 Shareholders' Equity 16,844,208 17,845,457 17,401,159 -------------------- ---------- ---------- ---------- Consolidated average balance sheet data: Total Assets $226,535,958 $224,637,174 $217,599,672 Total Deposits 198,443,652 196,112,318 189,745,214 Loans (gross) 186,053,433 184,061,988 177,779,049 Investments 22,238,326 22,646,050 23,142,396 Shareholders' Equity 18,020,645 17,804,500 17,374,418 -------------------- ---------- ---------- ---------- Consolidated performance ratios: Return on average assets* -1.51% 0.23% 0.80% Return on average equity* -18.99% 2.90% 10.02% Capital to Assets 7.95% 7.95% 7.98% ----------------- ---- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $22,870,696 $6,078,050 $2,222,060 Restructured loans 2,591,289 95,000 - Accruing loans 90 days past due - - - --- --- --- Nonperforming loans 25,461,985 6,173,050 2,222,060 Foreclosed properties 511,112 636,219 243,006 ------- ------- ------- Nonperforming assets 25,973,097 6,809,269 2,465,066 ---------- --------- --------- Restructured loans not included in categories above 7,748,562 1,136,527 798,197 --------- --------- ------- Allowance for loan losses 3,512,263 3,519,884 2,847,508 --------- --------- --------- Loans charged off 1,886,088 201,398 61,303 Recoveries of loans charged off 4,972 4,759 9,636 ----- ----- ----- Net loan charge-offs 1,881,116 196,639 51,667 --------- ------- ------ Net charge-offs to average loans* 4.01% 0.42% 0.12% Nonperforming loans to total loans 13.73% 3.33% 1.23% Nonperforming assets to total assets 11.61% 3.05% 1.10% Allowance coverage of nonperforming loans 13.79% 57.02% 128.15% Allowance for loan losses to gross loans 1.89% 1.90% 1.58% ------------------------- ---- ---- ---- Quarters Ended Mar 31, Dec 31, 2009 2008 ---- ---- Consolidated earning summary: Interest income $3,063,662 $3,171,825 Interest expense 1,193,073 1,270,829 --------- --------- Net interest income 1,870,589 1,900,996 Provision for loan losses 254,580 202,525 ------- ------- Net interest income after provision for loan losses 1,616,009 1,698,471 Other income 408,207 407,609 Other expenses 1,695,888 1,620,863 --------- --------- Income (loss) before taxes 328,328 485,217 Income taxes (benefit) 104,385 203,529 ------- ------- Net income (loss) $223,943 $281,688 ======== ======== Basic net income (loss) per common share $0.10 $0.13 Diluted net income (loss) per common share 0.10 0.12 ---- ---- Average Shares - Basic 2,136,837 2,124,622 Average Shares - Diluted 2,251,225 2,253,846 ------------------------ --------- --------- Consolidated balance sheet data: Total Assets $214,202,340 $202,858,972 Total Deposits 186,453,881 170,814,106 Loans (gross) 175,006,653 171,239,692 Investments 23,518,059 23,778,449 Shareholders' Equity 16,971,583 16,510,571 -------------------- ---------- ---------- Consolidated average balance sheet data: Total Assets $207,155,031 $197,854,734 Total Deposits 177,720,929 170,545,425 Loans (gross) 173,165,289 165,675,893 Investments 23,631,269 23,695,793 Shareholders' Equity 16,856,942 16,149,305 -------------------- ---------- ---------- Consolidated performance ratios: Return on average assets* 0.44% 0.57% Return on average equity* 5.39% 6.94% Capital to Assets 8.14% 8.16% ----------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $1,078,680 $268,053 Restructured loans - 48,049 Accruing loans 90 days past due - - --- --- Nonperforming loans 1,078,680 316,102 Foreclosed properties 205,006 205,006 ------- Nonperforming assets 1,283,686 521,108 --------- ------- Restructured loans not included in categories above 703,642 - ------- --- Allowance for loan losses 2,677,865 2,529,981 --------- --------- Loans charged off 117,693 36,759 Recoveries of loans charged off 10,997 8,971 ------ Net loan charge-offs 106,696 27,788 ------- ------ Net charge-offs to average loans* 0.25% 0.07% Nonperforming loans to total loans 0.62% 0.18% Nonperforming assets to total assets 0.60% 0.26% Allowance coverage of nonperforming loans 248.25% 800.37% Allowance for loan losses to gross loans 1.53% 1.48% ------------------------- ---- ---- * 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; Fax +1-828-350-3904,
rhall@bankofasheville.com
Web Site: http://www.bankofasheville.com/
