Weststar Financial Services Corporation Reports Financial Results for First Quarter 2010

News provided by

Weststar Financial Services Corporation

May 13, 2010, 04:26 ET

ASHEVILLE, N.C., May 13 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (OTC Bulletin Board: WFSC) today reported financial results for first quarter ended March 31, 2010.  Consolidated assets increased 4.8% over March 31, 2009 to $224.5 million.  Deposits for this period reflected a 5.9% increase to $197.5 million at March 31, 2010 over the prior year, and total loans were $184.1 million representing an increase of 5.2% from the year earlier.  Shareholders' equity on March 31, 2010 totaled $16.9 million.

For the three months ended March 31, 2010, net interest income totaled $1,919,158 compared to $1,870,589 for March 31, 2009 or a 2.6% increase.  Net income for this quarter totaled $81,248 compared to $223,943 or a 63.7% decrease.  On a diluted per common shares basis, net income was $.04 per share compared to $.10 per share.

Earnings performance for the quarter continued to be impacted primarily by an increase in provision for loan losses as a result of 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 .15% compared to .44%, and return on equity was 1.83% compared to 5.39% for the three-month periods ended March 31, 2010 and 2009, respectively.  

"The first quarter of 2010 continued to reflect deterioration in the economic activity within our market.  Though there were signs of possible improvement in the economy, our area continues to experience a depressed real estate market, slower retail trade and weak tourism.  These primary factors in our economy have led to an increase in our troubled assets and charge-offs.  We have taken direct action in dealing with these problems, and this has impacted our earnings.  We continue our primary focus on customer service and have continued making loans during this period.  Our focus is on the long term and in serving the needs of our customers," stated 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

March 31,

2010

2009

% change

Consolidated earning summary:


Interest income

$     2,759,923

$     3,063,662

-9.9%

Interest expense

840,765

1,193,073

-29.5%

Net interest income

1,919,158

1,870,589

2.6%

Provision for loan losses

438,035

254,580

72.1%

Net interest income after provision for loan losses

1,481,123

1,616,009

-8.4%

Other income

392,972

408,207

-3.7%

Other expenses

1,806,438

1,695,888

6.5%

Income (loss) before taxes

67,657

328,328

-79.4%

Income taxes (benefit)

(13,591)

104,385

-113.0%

Net income (loss)

$          81,248

$        223,943

-63.7%

Basic net income (loss) per common share

$              0.04

$              0.10

-60.0%

Diluted net income (loss) per common share

0.04

0.10

-60.0%

Average Shares - Basic

2,167,517

2,136,837

1.4%

Average Shares - Diluted

2,182,009

2,251,225

-3.1%

Consolidated balance sheet data:


Total Assets

$ 224,466,567

$ 214,202,340

4.8%

Total Deposits

197,508,562

186,453,881

5.9%

Loans (gross)

184,066,654

175,006,653

5.2%

Investments

24,082,597

23,518,059

2.4%

Shareholders' Equity

16,938,967

16,971,583

-0.2%

Consolidated average balance sheet data:


Total Assets

$ 224,106,939

$ 207,155,031

8.2%

Total Deposits

196,173,185

177,720,929

10.4%

Loans (gross)

186,147,532

173,165,289

7.5%

Investments

24,656,238

23,631,269

4.3%

Shareholders' Equity

18,045,751

16,856,942

7.1%

Consolidated performance ratios:


Return on average assets*

0.15%

0.44%

Return on average equity*

1.83%

5.39%

Capital to Assets

8.05%

8.14%

Consolidated asset quality data and ratios:


Nonaccrual loans

$   21,842,975

$     1,078,680

1925.0%

Restructured loans

3,691,277

-

-

Accruing loans 90 days past due

-

-

-

Nonperforming loans

25,534,252

1,078,680

2267.2%

Foreclosed properties

1,248,947

205,006

Repossessions

19,220

-

-

Nonperforming assets

26,802,419

1,283,686

1987.9%

Restructured loans not included in categories above

8,123,247

703,642

1154.5%

Allowance for loan losses

3,514,083

2,677,865

31.2%

Loans charged off

493,374

117,693

319.2%

Recoveries of loans charged off

57,159

10,997

419.8%

Net loan charge-offs

436,215

106,696

308.8%

Net charge-offs to average loans*

0.95%

0.25%

280.0%

Nonperforming loans to total loans

13.87%

0.62%

2137.1%

Nonperforming assets to total assets

11.94%

0.60%

1892.5%

Allowance coverage of nonperforming loans

13.76%

248.25%

-94.5%

Allowance for loan losses to gross loans

1.91%

1.53%

24.8%




*Annualized based on number of days in the period.

Weststar Financial Services Corporation & Subsidiary

Supplemental Quarterly Financial Data

Quarters Ended

Mar 31,

Dec 30,

Sept 30,

Jun 30,

Mar 31,


2010

2009

2009

2009

2009

Consolidated earning summary:




Interest income

$     2,759,923

$     2,689,965

$     3,207,708

$     3,236,606

$     3,063,662

Interest expense

840,765

927,850

1,042,572

1,153,254

1,193,073

Net interest income

1,919,158

1,762,115

2,165,136

2,083,352

1,870,589

Provision for loan losses

438,035

1,873,495

869,015

221,310

254,580

Net interest income after provision for loan losses

1,481,123

(111,380)

1,296,121

1,862,042

1,616,009

Other income

392,972

446,532

463,466

464,591

408,207

Other expenses

1,806,438

1,798,294

1,616,278

1,688,876

1,695,888

Income (loss) before taxes

67,657

(1,463,142)

143,309

637,757

328,328

Income taxes (benefit)

(13,591)

(600,485)

11,686

203,888

104,385

Net income (loss)

$          81,248

$      (862,657)

$        131,623

$        433,869

$        223,943

Basic net income (loss) per common share

$              0.04

$            (0.40)

$              0.06

$              0.20

$              0.10

Diluted net income (loss) per common share

0.04

(0.39)

0.06

0.19

0.10

Average Shares - Basic

2,167,517

2,147,575

2,146,817

2,146,132

2,136,837

Average Shares - Diluted

2,182,009

2,209,253

2,244,029

2,257,363

2,251,225

Consolidated balance sheet data:




Total Assets

$ 224,466,567

$ 223,755,740

$ 223,587,462

$ 223,524,119

$ 214,202,340

Total Deposits

197,508,562

197,122,741

195,756,057

195,449,346

186,453,881

Loans (gross)

184,066,654

185,474,873

185,441,835

180,614,075

175,006,653

Investments

24,082,597

25,046,500

22,414,711

22,998,342

23,518,059

Shareholders' Equity

16,938,967

16,844,208

17,845,457

17,401,159

16,971,583

Consolidated average balance sheet data:




Total Assets

$ 224,106,939

$ 226,535,958

$ 224,637,174

$ 217,599,672

$ 207,155,031

Total Deposits

196,173,185

198,443,652

196,112,318

189,745,214

177,720,929

Loans (gross)

186,147,532

186,053,433

184,061,988

177,779,049

173,165,289

Investments

24,656,238

22,238,326

22,646,050

23,142,396

23,631,269

Shareholders' Equity

18,045,751

18,020,645

17,804,500

17,374,418

16,856,942

Consolidated performance ratios:




Return on average assets*

0.15%

-1.51%

0.23%

0.80%

0.44%

Return on average equity*

1.83%

-18.99%

2.93%

10.02%

5.39%

Capital to Assets

8.05%

7.95%

7.93%

7.98%

8.14%

Consolidated asset quality data and ratios:




Nonaccrual loans

$   21,842,975

$   22,870,696

$     6,078,050

$     2,222,060

$     1,078,680

Restructured loans

3,691,277

2,591,289

95,000

-

-

Accruing loans 90 days past due

-

-

-

-

-

Nonperforming loans

25,534,252

25,461,985

6,173,050

2,222,060

1,078,680

Foreclosed properties

1,248,947

511,112

636,219

243,006

205,006

Repossessions

19,220



Nonperforming assets

26,802,419

25,973,097

6,809,269

2,465,066

1,283,686

Restructured loans not included in categories above

8,123,247

7,748,562

1,136,527

798,197

703,642

Allowance for loan losses

3,514,083

3,512,263

3,519,884

2,847,508

2,677,865

Loans charged off

493,374

1,886,088

201,398

61,303

117,693

Recoveries of loans charged off

57,159

4,972

4,759

9,636

10,997

Net loan charge-offs

436,215

1,881,116

196,639

51,667

106,696

Net charge-offs to average loans*

0.95%

4.01%

0.42%

0.12%

0.25%

Nonperforming loans to total loans

13.87%

13.73%

3.33%

1.23%

0.62%

Nonperforming assets to total assets

11.94%

11.61%

3.05%

1.10%

0.60%

Allowance coverage of nonperforming loans

13.76%

13.79%

57.02%

128.15%

248.25%

Allowance for loan losses to gross loans

1.91%

1.89%

1.90%

1.58%

1.53%






* Annualized based on number of days in the period.

SOURCE Weststar Financial Services Corporation

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED