Weststar Financial Services Corporation (OTC Bulletin Board: WFSC) reported record consolidated assets of $202.9 million on December 31, 2008 – a 16% increase overDecember 31, 2007. Total loans on December 31, 2008 were $171.2 million – an increase of 26% from the level reported a year earlier. Deposits reflected 15% growth to $170.8 million at December 31, 2008 compared to the prior year, and shareholders’ equity increased 9% from December 31, 2007 to $16.5 million at December 31, 2008.
Consolidated net income totaled $281 thousand for the three months ended December 31, 2008 compared to $488 thousand for the comparable period in 2007 – a decrease of 42%. On a diluted per share basis, earnings for the three- month periods of 2008 and 2007 were $.12 vs. $.21 – a decrease of 43%. For the twelve-month periods endedDecember 31, 2008, net income totaled $1,301 thousand compared to $2,046 thousand for the comparable period in 2007 – a decrease of 36%. On a diluted per share basis, earnings for the twelve-month periods ended December 31, 2008 and 2007, respectively, were $.57 and $.89 – a decrease of 36%. The decrease in earnings was primarily attributable to a compression in the Company’s net interest margin following Federal Open Market Committee interest rate cut initiatives, increased operating expenses to support overall growth in loans and deposits, and an increased provision for loan losses to support loan growth. Asset quality remained strong with nonperforming loans to total assets of .13% and .11% at December 31, 2008 and 2007, respectively.
Return on assets was .57% compared to 1.13%, and return on equity was 6.94% compared to 13.01% for the three-month periods ended December 31, 2008 and 2007, respectively. For the twelve-month periods ended December 31, 2008 and 2007, respectively, return on assets was .71% compared to 1.24%, and return on equity was 8.20% compared to 14.62%.
“2008 was a year ruled by negative economic indicators and widespread fear. Despite the turmoil and uncertainty in the financial markets, the fundamentals and overall safety and soundness of our bank remain strong. Throughout this economic downturn, we have continued to make loans to assist our commercial and retail customers with the same sound and cautious policies that have served us well for over a decade, and have continued to earn us a 5-Star Rating from BauerFinancial, Inc.,” stated G. Gordon Greenwood, President & 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.