Weststar Financial, parent of Bank of Asheville, turns down bailout cash

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

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Press release here:

Weststar Financial Services, the parent company of Bank of Asheville, has declined to participate in the capital purchase program of the US Treasury’s troubled asset relief program.

In January 2009, the company received notice that its application for $5.1 million in capital under the capital purchase program (CPP) had received theUS Treasury‘s preliminary approval.

The company’s capital ratios are substantially in excess of the well-capitalized regulatory ratios, and its asset quality has been significantly better than the industry average, said Weststar Financial.

Gordon Greenwood, president and CEO, said: “We have performed due diligence and concluded that the significant expense of the program and challenge to prudently and profitably deploy the capital were inconsistent with our long-term strategic objectives, and that participation in the CPP would not be in the best interest of the company’s shareholders.”