WFSC,, $3.69 Shareholders Equity $8.29..
Weststar Financial Services Corporation Third Quarter Results in 16% Growth
ASHEVILLE, N.C., Nov. 5 /PRNewswire-FirstCall/ -- Weststar Financial Services Corporation (OTC:WFSC) (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%
DATASOURCE: Weststar Financial Services Corporation
CONTACT: Randall C. Hall, Executive Vice President and Secretary, Chief Financial Officer,
+1-828-232-2904, Fax +1-828-350-3904,