Published:
Weststar Financial Services Corporation Third Quarter Results in 16% Growth
ASHEVILLE, N.C., Nov. 5 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (OTC Bulletin Board: WFSC) reported consolidated assets increased 15.8% over September 30, 2008 to a record level of $223.6 million. Total loans on September 30, 2009 were $185.4 million - an increase of 17.6% from the level reported a year earlier. Deposits reflected a 17.6% growth to $195.8 million at September 30, 2009 compared to the prior year, and shareholders' equity increased 13.1% from September 30, 2008 to $17.8 million at September 30, 2009
Consolidated net income totaled $132 thousand for the three months ended September 30, 2009 compared to $349 thousand for the comparable period in 2008 - a decrease of 62.3%. On a diluted per share basis, earnings for the three-month periods of 2009 and 2008 decreased 60.0% from $.15 per share to $.06. Pre-provision, pre-tax income, a non-GAAP measure the Company uses to provide a representative comparison of operational performance rose $166 thousand or 19.6% to $1,012 thousand compared to $846 thousand during the third quarter of 2008.
For the nine-month periods ended September 30, 2009, net income decreased from $1,020 thousand to $789 thousand or 22.6%. On a diluted per share basis, earnings for the nine-month periods ended September 30, 2009 and 2008, respectively, were $.35 and $.45 - a decrease of 22.2%. Pre-provision, pre-tax income totaled $2,454 thousand, representing an increase of $406,581 or 19.9% compared to $2,048 thousand during the 2008 period.
The decreased performance in earnings for both the quarter and year-to-date periods was primarily attributable to an increased provision for loan losses resulting from growth in the loan portfolio, deterioration in the regional economic conditions, weakening in real estate values, and our internal indicators reflecting increased past dues and problem debt restructuring.
Return on assets was .23% compared to .75%, and return on equity was 2.93% compared to 8.74% for the three-month periods ended September 30, 2009 and 2008, respectively. For the nine-month periods ended September 30, 2009 and 2008, respectively, return on assets was .49% compared to .76%, and return on equity was 6.08% compared to 8.64%.
"We are pleased with our steady growth and progress through the third quarter. We actively manage and monitor the loan portfolio which has resulted in an increase for provision for loan losses for two purposes. One, for loan growth in which we have continued to meet the needs of our community during this period, and secondly, for concerns over added market risk. For some of our real estate loans, we have felt it prudent to increase our reserve for the risk in the real estate market even though these loans have performed as agreed. As our economy begins a second year of this economic slowdown, we feel that more of our customers could be impacted which will require added monitoring of the loan portfolio along with the need to work with customers through the recovery period. Thus, as we assist them, we want to manage conservatively to assure that we have adequate reserves. We are proud of our results to date and are pleased with how the Bank has assisted our customers in supporting their needs during these very trying times. As a community bank we continue to focus on the attributes that define us as part of our community," 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
September 30,
2009 2008 % change
---- ---- --------
Consolidated earning summary:
Interest income $3,207,708 $3,080,208 4.1%
Interest expense 1,042,572 1,180,997 -11.7%
--------- ---------
Net interest income 2,165,136 1,899,211 14.0%
Provision for loan losses 869,015 320,635 171.0%
------- -------
Net interest income after
provision for loan losses 1,296,121 1,578,576 -17.9%
Other income 463,466 425,618 8.9%
Other expenses 1,616,278 1,478,381 9.3%
--------- ---------
Income before taxes 143,309 525,813 -72.8%
Income taxes 11,686 176,809 -93.4%
------ -------
Net income $131,623 $349,004 -62.3%
======== ========
Earnings per share - Basic $0.06 $0.16 -62.5%
Earnings per share - Diluted 0.06 0.15 -60.0%
---- ----
Average Shares - Basic 2,146,817 2,122,147 1.2%
Average Shares - Diluted 2,244,029 2,273,388 -1.3%
------------------------ --------- --------- ----
Consolidated balance sheet data:
Total Assets
Total Deposits
Loans (gross)
Investments
Shareholders' Equity
--------------------
Consolidated average
balance sheet data:
Total Assets $224,637,174 $185,946,806 20.8%
Total Deposits 196,112,318 159,510,362 23.0%
Loans (gross) 184,061,988 152,497,479 20.7%
Investments 22,646,050 24,553,284 -7.8%
Shareholders' Equity 17,804,500 15,892,539 12.0%
-------------------- ---------- ---------- ----
Consolidated performance ratios:
Return on average assets* 0.23% 0.75%
Return on average equity* 2.93% 8.74%
Capital to Assets 7.93% 8.55%
----------------- ---- ----
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 assets
Allowance coverage of
nonperforming loans
Allowance for loan losses
to gross loans
Nine Months Ended
September 30,
2009 2008 % change
---- ---- --------
Consolidated earning summary:
Interest income $9,507,976 $9,055,999 5.0%
Interest expense 3,388,899 3,713,421 -8.7%
--------- ---------
Net interest income 6,119,077 5,342,578 14.5%
Provision for loan losses 1,344,905 508,760 164.4%
--------- -------
Net interest income after
provision for loan losses 4,774,172 4,833,818 -1.2%
Other income 1,336,264 1,216,501 9.8%
Other expenses 5,001,042 4,511,361 10.9%
--------- ---------
Income before taxes 1,109,394 1,538,958 -27.9%
Income taxes 319,959 519,334 -38.4%
------- -------
Net income $789,435 $1,019,624 -22.6%
======== ==========
Earnings per share - Basic $0.37 $0.48 -22.9%
Earnings per share - Diluted 0.35 0.45 -22.2%
---- ----
Average Shares - Basic 2,142,534 2,120,195 1.1%
Average Shares - Diluted 2,241,998 2,278,072 -1.6%
------------------------ --------- --------- ----
Consolidated balance sheet data:
Total Assets $223,587,462 $193,073,062 15.8%
Total Deposits 195,756,057 166,519,486 17.6%
Loans (gross) 185,441,835 157,724,566 17.6%
Investments 22,414,711 23,681,294 -5.4%
Shareholders' Equity 17,845,457 15,783,148 13.1%
-------------------- ---------- ---------- ----
Consolidated average
balance sheet data:
Total Assets $216,527,533 $179,776,991 20.4%
Total Deposits 187,926,584 153,671,327 22.3%
Loans (gross) 178,375,357 143,687,632 24.1%
Investments 23,136,296 25,640,902 -9.8%
Shareholders' Equity 17,348,759 15,763,655 10.1%
-------------------- ---------- ---------- ----
Consolidated performance ratios:
Return on average assets* 0.49% 0.76%
Return on average equity* 6.08% 8.64%
Capital to Assets 8.01% 8.77%
----------------- ---- ----
Consolidated asset quality
data and ratios:
Nonaccrual loans $6,078,050 $82,693 7250.1%
Restructured loans 95,000 -
Accruing loans 90 days past due - - 0.0%
- -
Nonperforming loans 6,173,050 82,693 7365.0%
Foreclosed properties 636,219 227,407 179.8%
------- -------
Nonperforming assets 6,809,269 310,100 2095.8%
--------- -------
Restructured loans not
included in categories above 1,136,527 -
--------- -
Allowance for loan losses 3,519,884 2,355,244 49.5%
--------- ---------
Loans charged off 380,394 283,174 34.3%
Recoveries of loans charged off 25,392 39,533 -35.8%
------ ------
Net loan charge-offs 355,002 243,641 45.7%
------- -------
Net charge-offs to average
loans* 0.27% 0.23% 17.4%
Nonperforming loans to total
assets 2.76% 0.04% 6800.0%
Allowance coverage of
nonperforming loans 57.02% 2848.18% -98.0%
Allowance for loan losses to
gross loans 1.90% 1.49% 27.5%
---------------------------- ---- ---- ----
*Annualized based on number of days in the period.
Weststar Financial Services Corporation & Subsidiary
Supplemental Quarterly Financial Data
Quarters Ended
Sept 30, Jun 30, Mar 31,
2009 2009 2009
----------------------------- ---- ---- ----
Consolidated earning summary:
Interest income $3,207,708 $3,236,606 $3,063,662
Interest expense 1,042,572 1,153,254 1,193,073
--------- --------- ---------
Net interest income 2,165,136 2,083,352 1,870,589
Provision for loan losses 869,015 221,310 254,580
------- ------- -------
Net interest income after
provision for loan losses 1,296,121 1,862,042 1,616,009
Other income 463,466 464,591 408,207
Other expenses 1,616,278 1,688,876 1,695,888
--------- --------- ---------
Income before taxes 143,309 637,757 328,328
Income taxes 11,686 203,888 104,385
------ ------- -------
Net income $131,623 $433,869 $223,943
======== ======== ========
Earnings per share - Basic $0.06 $0.20 $0.10
Earnings per share - Diluted 0.06 0.19 0.10
---- ---- ----
Average Shares - Basic 2,146,817 2,146,132 2,136,837
Average Shares - Diluted 2,244,029 2,257,363 2,251,225
------------------------ --------- --------- ---------
Consolidated balance
sheet data:
Total Assets $223,587,462 $223,524,119 $214,202,340
Total Deposits 195,756,057 195,449,346 186,453,881
Loans (gross) 185,441,835 180,614,075 175,006,653
Investments 22,414,711 22,998,342 23,518,059
Shareholders' Equity 17,845,457 17,401,159 16,971,583
-------------------- ---------- ---------- ----------
Consolidated average balance
sheet data:
Total Assets $224,637,174 $217,599,672 $207,155,031
Total Deposits 196,112,318 189,745,214 177,720,929
Loans (gross) 184,061,988 177,779,049 173,165,289
Investments 22,646,050 23,142,396 23,631,269
Shareholders' Equity 17,804,500 17,374,418 16,856,942
-------------------- ---------- ---------- ----------
Consolidated performance ratios:
Return on average assets* 0.23% 0.80% 0.44%
Return on average equity* 2.93% 10.02% 5.39%
Capital to Assets 7.93% 7.98% 8.14%
----------------- ---- ---- ----
Consolidated asset quality data
and ratios:
Nonaccrual loans $6,078,050 $2,222,060 $1,078,680
Restructured loans 95,000
Accruing loans 90 days past due - - -
- - -
Nonperforming loans 6,173,050 2,222,060 1,078,680
Foreclosed properties 636,219 243,006 205,006
------- ------- -------
Nonperforming assets 6,809,269 2,465,066 1,283,686
--------- --------- ---------
Restructured loans
not included in categories above 1,136,527 798,197 703,642
--------- ------- -------
Allowance for loan losses 3,519,884 2,847,508 2,677,865
--------- --------- ---------
Loans charged off 201,398 61,303 117,693
Recoveries of loans charged off 4,759 9,636 10,997
----- ----- ------
Net loan charge-offs 196,639 51,667 106,696
------- ------ -------
Net charge-offs to
average loans* 0.42% 0.12% 0.25%
Nonperforming loans to
total assets 2.76% 0.99% 0.50%
Allowance coverage of
nonperforming loans 57.02% 128.15% 248.25%
Allowance for loan losses to
gross loans 1.90% 1.58% 1.53%
---------------------------- ---- ---- ----
Quarters Ended
Dec 31, Sept 30,
2008 2008
----------------------------- ---- ----
Consolidated earning summary:
Interest income $3,171,825 $3,080,208
Interest expense 1,270,829 1,180,997
--------- ---------
Net interest income 1,900,996 1,899,211
Provision for loan losses 202,525 320,635
------- -------
Net interest income after
provision for loan losses 1,698,471 1,578,576
Other income 407,609 425,618
Other expenses 1,620,863 1,478,381
--------- ---------
Income before taxes 485,217 525,813
Income taxes 203,529 176,809
------- -------
Net income $281,688 $349,004
======== ========
Earnings per share - Basic $0.13 $0.16
Earnings per share - Diluted 0.12 0.15
---- ----
Average Shares - Basic 2,124,622 2,122,147
Average Shares - Diluted 2,253,846 2,273,388
------------------------ --------- ---------
Consolidated balance sheet data:
Total Assets $202,858,972 $193,073,062
Total Deposits 170,814,106 166,519,486
Loans (gross) 171,239,692 157,724,566
Investments 23,778,449 23,681,294
Shareholders' Equity 16,510,571 15,783,148
-------------------- ---------- ----------
Consolidated average balance
sheet data:
Total Assets $197,854,734 $185,946,806
Total Deposits 170,545,425 159,510,362
Loans (gross) 165,675,893 152,497,479
Investments 23,695,793 24,553,284
Shareholders' Equity 16,149,305 15,892,539
-------------------- ---------- ----------
Consolidated performance ratios:
Return on average assets* 0.57% 0.75%
Return on average equity* 6.94% 8.74%
Capital to Assets 8.16% 8.55%
----------------- ---- ----
Consolidated asset quality
data and ratios:
Nonaccrual loans $316,102 $82,693
Restructured loans
Accruing loans 90 days past due - -
- -
Nonperforming loans 316,102 82,693
Foreclosed properties 205,006 227,407
------- -------
Nonperforming assets 521,108 310,100
------- -------
Restructured loans not included
in categories above - -
- -
Allowance for loan losses 2,529,981 2,355,244
--------- ---------
Loans charged off 36,759 236,362
Recoveries of loans charged off 8,971 18,587
----- ------
Net loan charge-offs 27,788 217,775
------ -------
Net charge-offs to average
loans* 0.07% 0.57%
Nonperforming loans to total
assets 0.16% 0.04%
Allowance coverage of
nonperforming loans 800.37% 2848.18%
Allowance for loan losses to
gross loans 1.48% 1.49%
---------------------------- ---- ----
* Annualized based on number of days in the period.
SOURCE Weststar Financial Services Corporation
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