Weststar Financial Services Corporation Reports Second Quarter Results
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 |
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Selected Financial Data |
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Three Months Ended |
Six Months Ended |
||||||||
June 30, |
June 30, |
||||||||
2010 |
2009 |
% change |
2010 |
2009 |
% change |
||||
Consolidated earning summary: |
|||||||||
Interest income |
$ 2,526,630 |
$ 3,236,606 |
-21.9% |
$ 5,286,553 |
$ 6,300,268 |
-16.1% |
|||
Interest expense |
800,690 |
1,153,254 |
-30.6% |
1,641,455 |
2,346,327 |
-30.0% |
|||
Net interest income |
1,725,940 |
2,083,352 |
-17.2% |
3,645,098 |
3,953,941 |
-7.8% |
|||
Provision for loan losses |
14,069,355 |
221,310 |
6257.3% |
14,507,390 |
475,890 |
2948.5% |
|||
Net interest income after |
|||||||||
provision for loan losses |
(12,343,415) |
1,862,042 |
-762.9% |
(10,862,292) |
3,478,051 |
-412.3% |
|||
Other income |
424,908 |
464,591 |
-8.5% |
817,880 |
872,798 |
-6.3% |
|||
Other expenses |
2,065,912 |
1,688,876 |
22.3% |
3,872,350 |
3,384,764 |
14.4% |
|||
Income (loss) before taxes |
(13,984,419) |
637,757 |
-2292.8% |
(13,916,762) |
966,085 |
-1540.5% |
|||
Income taxes (benefit) |
96,351 |
203,888 |
-52.7% |
82,760 |
308,273 |
-73.2% |
|||
Net income (loss) |
$ (14,080,770) |
$ 433,869 |
-3345.4% |
$ (13,999,522) |
$ 657,812 |
-2228.2% |
|||
Basic net income (loss) per common share |
$ (6.50) |
$ 0.20 |
-3350.0% |
$ (6.46) |
$ 0.31 |
-2183.9% |
|||
Diluted net income (loss) per common share |
(6.50) |
0.19 |
-3521.1% |
(6.46) |
0.29 |
-2327.6% |
|||
Average Shares - Basic |
2,167,517 |
2,146,132 |
1.0% |
2,167,517 |
2,140,937 |
1.2% |
|||
Average Shares - Diluted |
2,167,517 |
2,257,363 |
-4.0% |
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 |
$ 228,622,686 |
$ 217,599,672 |
5.1% |
$ 226,376,844 |
$ 212,405,828 |
6.6% |
|||
Total Deposits |
201,604,540 |
189,745,214 |
6.3% |
198,903,427 |
183,766,075 |
8.2% |
|||
Loans (gross) |
183,687,355 |
177,779,049 |
3.3% |
184,910,647 |
175,484,914 |
5.4% |
|||
Investments |
24,264,392 |
23,142,396 |
4.9% |
24,459,233 |
23,385,482 |
4.6% |
|||
Shareholders' Equity |
16,940,567 |
17,374,418 |
-2.5% |
17,490,104 |
17,117,109 |
2.2% |
|||
Consolidated performance ratios: |
|||||||||
Return on average assets* |
-24.70% |
0.80% |
-12.47% |
0.62% |
|||||
Return on average equity* |
-333.39% |
10.02% |
-161.41% |
7.75% |
|||||
Leverage ratio |
1.51% |
9.78% |
1.51% |
9.78% |
|||||
Tier 1 capital |
1.93% |
11.36% |
1.93% |
11.36% |
|||||
Total risk-based capital |
3.85% |
12.61% |
3.85% |
12.61% |
|||||
Average capital to average assets |
7.41% |
7.98% |
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. |
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Weststar Financial Services Corporation & Subsidiary |
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Supplemental Quarterly Financial Data |
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Quarters Ended |
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Jun 30, |
Mar 31, |
Dec 30, |
Sept 30, |
Jun 30, |
||
2010 |
2010 |
2009 |
2009 |
2009 |
||
Consolidated earning summary: |
||||||
Interest income |
$ 2,526,630 |
$ 2,759,923 |
$ 2,689,965 |
$ 3,207,708 |
$ 3,236,606 |
|
Interest expense |
800,690 |
840,765 |
927,850 |
1,042,572 |
1,153,254 |
|
Net interest income |
1,725,940 |
1,919,158 |
1,762,115 |
2,165,136 |
2,083,352 |
|
Provision for loan losses |
14,069,355 |
438,035 |
1,873,495 |
869,015 |
221,310 |
|
Net interest income after provision for loan losses |
(12,343,415) |
1,481,123 |
(111,380) |
1,296,121 |
1,862,042 |
|
Other income |
424,908 |
392,972 |
446,532 |
463,466 |
464,591 |
|
Other expenses |
2,065,912 |
1,806,438 |
1,798,294 |
1,616,278 |
1,688,876 |
|
Income (loss) before taxes |
(13,984,419) |
67,657 |
(1,463,142) |
143,309 |
637,757 |
|
Income taxes (benefit) |
96,351 |
(13,591) |
(600,485) |
11,686 |
203,888 |
|
Net income (loss) |
$ (14,080,770) |
$ 81,248 |
$ (862,657) |
$ 131,623 |
$ 433,869 |
|
Basic net income (loss) per common share |
$ (6.50) |
$ 0.04 |
$ (0.40) |
$ 0.06 |
$ 0.20 |
|
Diluted net income (loss) per common share |
(6.50) |
0.04 |
(0.39) |
0.06 |
0.19 |
|
Average Shares - Basic |
2,167,517 |
2,167,517 |
2,147,575 |
2,146,817 |
2,146,132 |
|
Average Shares - Diluted |
2,167,517 |
2,182,009 |
2,209,253 |
2,244,029 |
2,257,363 |
|
Consolidated balance sheet data: |
||||||
Total Assets |
$ 214,238,003 |
$ 224,466,567 |
$ 223,755,740 |
$ 223,587,462 |
$ 223,524,119 |
|
Total Deposits |
200,896,609 |
197,508,562 |
197,122,741 |
195,756,057 |
195,449,346 |
|
Loans (gross) |
170,438,295 |
184,066,654 |
185,474,873 |
185,441,835 |
180,614,075 |
|
Investments |
24,456,879 |
24,082,597 |
25,046,500 |
22,414,711 |
22,998,342 |
|
Shareholders' Equity |
3,025,530 |
16,938,967 |
16,844,208 |
17,845,457 |
17,401,159 |
|
Consolidated average balance sheet data: |
||||||
Total Assets |
$ 228,622,686 |
$ 224,106,939 |
$ 226,535,958 |
$ 224,637,174 |
$ 217,599,672 |
|
Total Deposits |
201,604,540 |
196,173,185 |
198,443,652 |
196,112,318 |
189,745,214 |
|
Loans (gross) |
183,687,355 |
186,147,532 |
186,053,433 |
184,061,988 |
177,779,049 |
|
Investments |
24,264,392 |
24,656,238 |
22,238,326 |
22,646,050 |
23,142,396 |
|
Shareholders' Equity |
16,940,567 |
18,045,751 |
18,020,645 |
17,804,500 |
17,374,418 |
|
Consolidated performance ratios: |
||||||
Return on average assets* |
-24.70% |
0.15% |
-1.51% |
0.23% |
0.80% |
|
Return on average equity* |
-333.39% |
1.83% |
-18.99% |
2.93% |
10.02% |
|
Leverage ratio |
1.51% |
9.24% |
9.11% |
9.53% |
9.78% |
|
Tier 1 capital |
1.93% |
10.74% |
10.59% |
11.01% |
11.36% |
|
Total risk-based capital |
3.85% |
11.99% |
11.84% |
12.26% |
12.61% |
|
Average capital to average assets |
7.41% |
8.05% |
7.95% |
7.93% |
7.98% |
|
Consolidated asset quality data and ratios: |
||||||
Nonaccrual loans |
$ 20,386,235 |
$ 21,842,975 |
$ 22,870,696 |
$ 6,078,050 |
$ 2,222,060 |
|
Restructured loans |
4,470,275 |
3,691,277 |
2,591,289 |
95,000 |
798,197 |
|
Accruing loans 90 days past due |
- |
- |
- |
- |
- |
|
Nonperforming loans |
24,856,510 |
25,534,252 |
25,461,985 |
6,173,050 |
3,020,257 |
|
Foreclosed properties |
2,910,381 |
1,248,947 |
511,112 |
636,219 |
205,006 |
|
Repossessions |
13,325 |
19,220 |
- |
- |
38,000 |
|
Nonperforming assets |
27,780,216 |
26,802,419 |
25,973,097 |
6,809,269 |
3,263,263 |
|
Restructured loans not included in categories above |
3,564,735 |
8,123,247 |
7,748,562 |
1,136,527 |
798,197 |
|
Allowance for loan losses |
4,185,422 |
3,514,083 |
3,512,263 |
3,519,884 |
2,847,508 |
|
Loans charged off |
13,412,398 |
493,374 |
1,886,088 |
201,398 |
61,303 |
|
Recoveries of loans charged off |
14,382 |
57,159 |
4,972 |
4,759 |
9,636 |
|
Net loan charge-offs |
13,398,016 |
436,215 |
1,881,116 |
196,639 |
51,667 |
|
Net charge-offs to average loans* |
29.26% |
0.95% |
4.01% |
0.42% |
0.12% |
|
Nonperforming loans to total loans |
14.58% |
13.87% |
13.73% |
3.33% |
1.67% |
|
Nonperforming assets to total assets |
12.97% |
11.94% |
11.61% |
3.05% |
1.46% |
|
Allowance coverage of nonperforming loans |
16.84% |
13.76% |
13.79% |
57.02% |
94.28% |
|
Allowance for loan losses to gross loans |
2.46% |
1.91% |
1.89% |
1.90% |
1.58% |
|
* Annualized based on number of days in the period. |
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SOURCE Weststar Financial Services Corporation
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