Weststar Financial Services Corp. today posted its preliminary financial results for 2009, reporting that its quarterly and full-year results were heavily impacted by an aggressive increase in provision for loan losses stemming from growth in the loan portfolio, continued weak regional economic conditions, decreasing real estate values, charged-off loans, and an increased number of past dues and troubled debt restructures.
“During the past year we worked to meet the loan needs of our community in a challenging economy. While there were signs that the national economy was improving, we saw continued deterioration in economic activity beginning in the fourth quarter and continuing through the winter. Because of these two primary factors, more of our customers were adversely impacted by the slower economy and the harsh winter. Thus, we increased our reserves and took a more aggressive approach in dealing with our problem assets, which directly impacted earnings,” G. Gordon Greenwood, president and CEO of Weststar Financial stated in the press release.
For the quarter ended December 31, 2009, the company reported consolidated net loss at $863,000, or $(.40) diluted earnings per share, compared to net income of $282,000, or $.12 diluted earnings per share, reported for the same three months of 2008.
For the 12 months ended December 31, 2009, Weststar Financial reported a net loss of $73,000, or $(.03) diluted earnings per share, compared to net income of $1,301,000, or $.57 diluted earnings per share, for full year ended December 31, 2008.
The company reported that consolidated assets increased 10.3 percent over December 31, 2008 to $223.7 million. Deposits for this period were $197.1 million at December 31, 2009, up 15.4 percent from 2008. Total loans on December 31, 2009, were $185.5 million an 8.3 percent increase from the year earlier. Shareholders’ equity increased 2.0 percent from December 31, 2008, to $16.8 million at December 31, 2009.
Greenwood said the weight of the nation’s economic woes will continue to impact the company’s performance as it pushes to get back on track.
“We continue to work to support our local community and to manage conservatively during this difficult period. As we have stated previously, this is and has been a long and deeper slow down in the economy, and it will take a longer time for correction. We will continue to provide the level of service that defines us as a community bank and will work with our customers through this extraordinary period,” Greenwood stated.