ASHEVILLE, N.C., Aug. 20 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (OTC Bulletin Board: "WFSC") reported a consolidated net loss of $14,081,000 for the three months ended June 30, 2010 compared to net income of $434,000 for the comparable period in 2009 or $(6.50) and $.19, respectively, on a diluted per share basis. For the six-month periods ended June 30, 2010, net loss totaled $14,000,000 compared to income of $658,000 during 2009 or $(6.46) and $.29, respectively on a diluted per share basis.
The loss was primarily attributable to decreases in underlying real estate and other asset values underlying certain of the Company's nonperforming loans. While the economy has demonstrated some signs of improvement, we continue to experience declines in value related primarily to development and related loans. As a result the Company added $14,069,000 and $14,507,000 to the allowance for loan loss reserve during the 2010 three and six-month periods, respectively, which brought the reserve up to 2.46% of loans outstanding.
As of June 30, 2010, consolidated total assets decreased slightly to $214,238,000 from $223,524,000 a year earlier. Deposits rose to $200,897,000 - an increase of 2.8%; investments increased 6.3% to $24,457,000; and total loans were $170,438,000. Nonperforming assets were $27,780,000 compared to $25,973,000 at December 31, 2009 and $3,263,000 at June 30, 2009.
"Our loan charge-offs were disappointing as our customers continue to suffer through the current economic environment. We are working aggressively on every problem loan and are beginning to experience incremental improvement in the prospects of liquidating nonperforming assets. Concurrently, we continue to explore every option of working with our loan customers through these unprecedented times, and our commitment to our community and customers is evident as our deposits reached an all time high during the period," commented Randall C. Hall, Interim President and CEO.
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, 2010 2009 % change ---- ---- -------- Consolidated earning summary: Interest income $2,526,630 $3,236,606 -21.9% Interest expense 800,690 1,153,254 -30.6% ------- --------- Net interest income 1,725,940 2,083,352 -17.2% Provision for loan losses 14,069,355 221,310 6257.3% ---------- ------- Net interest income after provision for loan losses (12,343,415) 1,862,042 -762.9% Other income 424,908 464,591 -8.5% Other expenses 2,065,912 1,688,876 22.3% --------- --------- Income (loss) before taxes (13,984,419) 637,757 -2292.8% Income taxes (benefit) 96,351 203,888 -52.7% Net income (loss) $(14,080,770) $433,869 -3345.4% ============ ======== Basic net income (loss) per common share $(6.50) $0.20 -3350.0% Diluted net income (loss) per common share (6.50) 0.19 -3521.1% ----- ---- Average Shares - Basic 2,167,517 2,146,132 1.0% Average Shares - Diluted 2,167,517 2,257,363 -4.0% ------------------------ --------- --------- ---- Consolidated balance sheet data: Total Assets Total Deposits Loans (gross) Investments Shareholders' Equity -------------------- Consolidated average balance sheet data: Total Assets $228,622,686 $217,599,672 5.1% Total Deposits 201,604,540 189,745,214 6.3% Loans (gross) 183,687,355 177,779,049 3.3% Investments 24,264,392 23,142,396 4.9% Shareholders' Equity 16,940,567 17,374,418 -2.5% -------------------- ---------- ---------- ---- Consolidated performance ratios: Return on average assets* -24.70% 0.80% Return on average equity* -333.39% 10.02% Leverage ratio 1.51% 9.78% Tier 1 capital 1.93% 11.36% Total risk-based capital 3.85% 12.61% Average capital to average assets 7.41% 7.98% --------------------------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans Restructured loans Accruing loans 90 days past due Nonperforming loans Foreclosed properties Repossessions 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 ---------------------------- Six Months Ended June 30, 2010 2009 % change ---- ---- -------- Consolidated earning summary: Interest income $5,286,553 $6,300,268 -16.1% Interest expense 1,641,455 2,346,327 -30.0% --------- --------- Net interest income 3,645,098 3,953,941 -7.8% Provision for loan losses 14,507,390 475,890 2948.5% ---------- ------- Net interest income after provision for loan losses (10,862,292) 3,478,051 -412.3% Other income 817,880 872,798 -6.3% Other expenses 3,872,350 3,384,764 14.4% --------- --------- Income (loss) before taxes (13,916,762) 966,085 -1540.5% Income taxes (benefit) 82,760 308,273 -73.2% Net income (loss) $(13,999,522) $657,812 -2228.2% ============ ======== Basic net income (loss) per common share $(6.46) $0.31 -2183.9% Diluted net income (loss) per common share (6.46) 0.29 -2327.6% ----- ---- Average Shares - Basic 2,167,517 2,140,937 1.2% Average Shares - Diluted 2,167,517 2,241,744 -3.3% ------------------------ --------- --------- ---- Consolidated balance sheet data: Total Assets $214,238,003 $223,524,119 -4.2% Total Deposits 200,896,609 195,449,346 2.8% Loans (gross) 170,438,295 180,614,075 -5.6% Investments 24,456,879 22,998,342 6.3% Shareholders' Equity 3,025,530 17,401,159 -82.6% -------------------- --------- ---------- ----- Consolidated average balance sheet data: Total Assets $226,376,844 $212,405,828 6.6% Total Deposits 198,903,427 183,766,075 8.2% Loans (gross) 184,910,647 175,484,914 5.4% Investments 24,459,233 23,385,482 4.6% Shareholders' Equity 17,490,104 17,117,109 2.2% -------------------- ---------- ---------- --- Consolidated performance ratios: Return on average assets* -12.47% 0.62% Return on average equity* -161.41% 7.75% Leverage ratio 1.51% 9.78% Tier 1 capital 1.93% 11.36% Total risk-based capital 3.85% 12.61% Average capital to average assets 7.73% 8.06% --------------------------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $20,386,235 $2,222,060 817.5% Restructured loans 4,470,275 798,197 460.1% Accruing loans 90 days past due - - 0.0% --- --- Nonperforming loans 24,856,510 3,020,257 723.0% Foreclosed properties 2,910,381 205,006 Repossessions 13,325 38,000 -64.9% ------ ------ Nonperforming assets 27,780,216 3,263,263 751.3% ---------- --------- Restructured loans not included in categories above 3,564,735 - 0.0% --------- --- Allowance for loan losses 4,185,422 2,847,508 47.0% --------- --------- Loans charged off 13,905,772 178,996 7668.8% Recoveries of loans charged off 71,541 20,633 246.7% ------ ------ Net loan charge-offs 13,834,231 158,363 8635.8% ---------- ------- Net charge-offs to average loans* 15.09% 0.18% 8283.3% Nonperforming loans to total loans 14.58% 1.67% 773.1% Nonperforming assets to total assets 12.97% 1.46% 788.2% Allowance coverage of nonperforming loans 16.84% 94.28% -82.1% Allowance for loan losses to gross loans 2.46% 1.58% 55.7% ---------------------------- ---- ---- ---- *Annualized based on number of days in the period. Weststar Financial Services Corporation & Subsidiary Supplemental Quarterly Financial Data Quarters Ended Jun 30, Mar 31, 2010 2010 ---- ---- Consolidated earning summary: Interest income $2,526,630 $2,759,923 Interest expense 800,690 840,765 ------- ------- Net interest income 1,725,940 1,919,158 Provision for loan losses 14,069,355 438,035 ---------- ------- Net interest income after provision for loan losses (12,343,415) 1,481,123 Other income 424,908 392,972 Other expenses 2,065,912 1,806,438 --------- --------- Income (loss) before taxes (13,984,419) 67,657 Income taxes (benefit) 96,351 (13,591) ------- Net income (loss) $(14,080,770) $81,248 ============ ======= Basic net income (loss) per common share $(6.50) $0.04 Diluted net income (loss) per common share (6.50) 0.04 ----- ---- Average Shares - Basic 2,167,517 2,167,517 Average Shares - Diluted 2,167,517 2,182,009 ------------------------ --------- --------- Consolidated balance sheet data: Total Assets $214,238,003 $224,466,567 Total Deposits 200,896,609 197,508,562 Loans (gross) 170,438,295 184,066,654 Investments 24,456,879 24,082,597 Shareholders' Equity 3,025,530 16,938,967 -------------------- --------- ---------- Consolidated average balance sheet data: Total Assets $228,622,686 $224,106,939 Total Deposits 201,604,540 196,173,185 Loans (gross) 183,687,355 186,147,532 Investments 24,264,392 24,656,238 Shareholders' Equity 16,940,567 18,045,751 -------------------- ---------- ---------- Consolidated performance ratios: Return on average assets* -24.70% 0.15% Return on average equity* -333.39% 1.83% Leverage ratio 1.51% 9.24% Tier 1 capital 1.93% 10.74% Total risk-based capital 3.85% 11.99% Average capital to average assets 7.41% 8.05% -------------------------- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $20,386,235 $21,842,975 Restructured loans 4,470,275 3,691,277 Accruing loans 90 days past due - - --- --- Nonperforming loans 24,856,510 25,534,252 Foreclosed properties 2,910,381 1,248,947 Repossessions 13,325 19,220 ------ Nonperforming assets 27,780,216 26,802,419 ---------- ---------- Restructured loans not included in categories above 3,564,735 8,123,247 --------- Allowance for loan losses 4,185,422 3,514,083 --------- --------- Loans charged off 13,412,398 493,374 Recoveries of loans charged off 14,382 57,159 ------ Net loan charge-offs 13,398,016 436,215 ---------- ------- Net charge-offs to average loans* 29.26% 0.95% Nonperforming loans to total loans 14.58% 13.87% Nonperforming assets to total assets 12.97% 11.94% Allowance coverage of nonperforming loans 16.84% 13.76% Allowance for loan losses to gross loans 2.46% 1.91% ---------------------------- ---- ---- 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% 2.93% 10.02% Leverage ratio 9.11% 9.53% 9.78% Tier 1 capital 10.59% 11.01% 11.36% Total risk-based capital 11.84% 12.26% 12.61% Average capital to average assets 7.95% 7.93% 7.98% -------------------------- ---- ---- ---- Consolidated asset quality data and ratios: Nonaccrual loans $22,870,696 $6,078,050 $2,222,060 Restructured loans 2,591,289 95,000 798,197 Accruing loans 90 days past due - - - --- --- --- Nonperforming loans 25,461,985 6,173,050 3,020,257 Foreclosed properties 511,112 636,219 205,006 Repossessions - - 38,000 --- --- ------ Nonperforming assets 25,973,097 6,809,269 3,263,263 ---------- --------- --------- 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% 1.67% Nonperforming assets to total assets 11.61% 3.05% 1.46% Allowance coverage of nonperforming loans 13.79% 57.02% 94.28% Allowance for loan losses to gross loans 1.89% 1.90% 1.58% ---------------------------- ---- ---- ---- * Annualized based on number of days in the period.
Weststar Financial Services Corporation
CONTACT: Randall C. Hall, Interim President & CEO, Chief Financial
Officer, Voice +1-828-232-2904; Fax +1-828-350-3904,
rhall@bankofasheville.com
Web Site: http://www.bankofasheville.com/
