Weststar Financial Services Corp. in Asheville, N.C., has reported a $14 million second-quarter loss, compared with net income of $434,000 a year earlier.
The $214.2 million-asset company attributed the loss Friday to declines in the value of real estate and other assets underlying some of its nonperforming loans.
Weststar charged off $13.8 million and took nearly a $14 million provision for loan losses in the second quarter — a 6,257% increase from a year earlier.
Nonperforming assets totaled $27.7 million at June 30, a 7% increase from the first quarter, and nearly nine times higher than a year earlier.
Weststar had a nonperforming assets ratio of 12.97%.
At June 30, its leverage ratio was 1.51%, and its total risk-based capital ratio was 3.85%.