Weststar Financial Services Corporation Reports Financial Results for 2009

News provided by

Weststar Financial Services Corporation

Apr 08, 2010, 04:35 ET

ASHEVILLE, N.C., April 8 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (OTC 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

Twelve Months Ended

December 31,

December 31,

2009

2008

% change

2009

2008

% change

Consolidated earning summary:






Interest income

$     2,689,965

$     3,171,825

-15.2%

$   12,197,941

$   12,227,824

-0.2%

Interest expense

927,850

1,270,829

-27.0%

4,316,749

4,984,250

-13.4%

Net interest income

1,762,115

1,900,996

-7.3%

7,881,192

7,243,574

8.8%

Provision for loan losses

1,873,495

202,525

825.1%

3,218,400

711,285

352.5%

Net interest income after






provision for loan losses

(111,380)

1,698,471

-106.6%

4,662,792

6,532,289

-28.6%

Other income

446,532

407,609

9.6%

1,782,796

1,624,110

9.8%

Other expenses

1,798,294

1,620,863

11.0%

6,799,336

6,132,224

10.9%

Income (loss) before taxes

(1,463,142)

485,217

-401.5%

(353,748)

2,024,175

-117.5%

Income taxes (benefit)

(600,485)

203,529

-395.0%

(280,526)

722,863

-138.8%

Net income (loss)

$      (862,657)

$        281,688

-406.3%

$        (73,222)

$     1,301,312

-105.6%

Basic net income (loss) per common share

$            (0.40)

$              0.13

-407.7%

$            (0.03)

$              0.61

-104.9%

Diluted net income (loss) per common share

(0.40)

0.12

-433.3%

(0.03)

0.57

-105.3%

Average Shares - Basic

2,147,575

2,124,622

1.1%

2,144,658

2,121,308

1.1%

Average Shares - Diluted

2,147,575

2,253,846

-4.7%

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

$ 226,535,958

$ 197,854,734

14.5%

$ 218,959,327

$ 184,321,441

18.8%

Total Deposits

198,443,652

170,545,425

16.4%

190,575,844

157,913,218

20.7%

Loans (gross)

186,053,433

165,675,893

12.3%

180,310,653

149,214,736

20.8%

Investments

22,238,326

23,695,793

-6.2%

22,909,958

25,151,968

-8.9%

Shareholders' Equity

18,020,645

16,149,305

11.6%

17,517,808

15,860,596

10.5%

Consolidated performance ratios:






Return on average assets*

-1.51%

0.57%

-0.03%

0.71%

Return on average equity*

-18.99%

6.94%

-0.42%

8.20%

Capital to Assets

7.95%

8.16%

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,

Mar 31,

Dec 31,

2009

2009

2009

2009

2008

Consolidated earning summary:




Interest income

$     2,689,965

$     3,207,708

$     3,236,606

$     3,063,662

$     3,171,825

Interest expense

927,850

1,042,572

1,153,254

1,193,073

1,270,829

Net interest income

1,762,115

2,165,136

2,083,352

1,870,589

1,900,996

Provision for loan losses

1,873,495

869,015

221,310

254,580

202,525

Net interest income after provision for loan losses

(111,380)

1,296,121

1,862,042

1,616,009

1,698,471

Other income

446,532

463,466

464,591

408,207

407,609

Other expenses

1,798,294

1,616,278

1,688,876

1,695,888

1,620,863

Income (loss) before taxes

(1,463,142)

143,309

637,757

328,328

485,217

Income taxes (benefit)

(600,485)

11,686

203,888

104,385

203,529

Net income (loss)

$      (862,657)

$        131,623

$        433,869

$        223,943

$        281,688

Basic net income (loss) per common share

$            (0.40)

$              0.06

$              0.20

$              0.10

$              0.13

Diluted net income (loss) per common share

(0.39)

0.06

0.19

0.10

0.12

Average Shares - Basic

2,147,575

2,146,817

2,146,132

2,136,837

2,124,622

Average Shares - Diluted

2,209,253

2,244,029

2,257,363

2,251,225

2,253,846

Consolidated balance sheet data:




Total Assets

$ 223,755,740

$ 223,587,462

$ 223,524,119

$ 214,202,340

$ 202,858,972

Total Deposits

197,122,741

195,756,057

195,449,346

186,453,881

170,814,106

Loans (gross)

185,474,873

185,441,835

180,614,075

175,006,653

171,239,692

Investments

25,046,500

22,414,711

22,998,342

23,518,059

23,778,449

Shareholders' Equity

16,844,208

17,845,457

17,401,159

16,971,583

16,510,571

Consolidated average balance sheet data:




Total Assets

$ 226,535,958

$ 224,637,174

$ 217,599,672

$ 207,155,031

$ 197,854,734

Total Deposits

198,443,652

196,112,318

189,745,214

177,720,929

170,545,425

Loans (gross)

186,053,433

184,061,988

177,779,049

173,165,289

165,675,893

Investments

22,238,326

22,646,050

23,142,396

23,631,269

23,695,793

Shareholders' Equity

18,020,645

17,804,500

17,374,418

16,856,942

16,149,305

Consolidated performance ratios:




Return on average assets*

-1.51%

0.23%

0.80%

0.44%

0.57%

Return on average equity*

-18.99%

2.90%

10.02%

5.39%

6.94%

Capital to Assets

7.95%

7.95%

7.98%

8.14%

8.16%

Consolidated asset quality data and ratios:




Nonaccrual loans

$   22,870,696

$     6,078,050

$     2,222,060

$     1,078,680

$        268,053

Restructured loans

2,591,289

95,000

-

-

48,049

Accruing loans 90 days past due

-

-

-

-

-

Nonperforming loans

25,461,985

6,173,050

2,222,060

1,078,680

316,102

Foreclosed properties

511,112

636,219

243,006

205,006

205,006

Nonperforming assets

25,973,097

6,809,269

2,465,066

1,283,686

521,108

Restructured loans not included in categories above

7,748,562

1,136,527

798,197

703,642

-

Allowance for loan losses

3,512,263

3,519,884

2,847,508

2,677,865

2,529,981

Loans charged off

1,886,088

201,398

61,303

117,693

36,759

Recoveries of loans charged off

4,972

4,759

9,636

10,997

8,971

Net loan charge-offs

1,881,116

196,639

51,667

106,696

27,788

Net charge-offs to average loans*

4.01%

0.42%

0.12%

0.25%

0.07%

Nonperforming loans to total loans

13.73%

3.33%

1.23%

0.62%

0.18%

Nonperforming assets to total assets

11.61%

3.05%

1.10%

0.60%

0.26%

Allowance coverage of nonperforming loans

13.79%

57.02%

128.15%

248.25%

800.37%

Allowance for loan losses to gross loans

1.89%

1.90%

1.58%

1.53%

1.48%






* Annualized based on number of days in the period.

SOURCE Weststar Financial Services Corporation

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