WAKE FOREST, N.C., Jan. 21, 2015 (GLOBE NEWSWIRE) -- Wake Forest Bancshares, Inc., (OTCBB:WAKE) parent company of Wake Forest Federal Savings and Loan Association, announced today that the Company reported earnings of $233,419 or $0.20 per share for its quarter ended December 31, 2014. The current quarter's results compared favorably to the same quarter last year when the Company reported earnings of $198,077 or $0.17 per share.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that the Company was pleased with the current quarter's results which were positively impacted by declining levels of nonperforming assets and thus reduced loan loss provisions and costs associated with foreclosed assets. Although the Company's returns continue to be impacted by compressed interest rate margins, those margins have increased slightly over the past twelve months because the Company has increasingly invested in brokered certificates that have yields higher then bonds but do not fluctuate with market interest rates. These investments guard against interest rate risk as does a significant portion of the Company's loan portfolio which has shorter maturities or variable rates. The Federal Reserve has kept interest rates at historic lows since December of 2008 but when rates rise in the future, the Company's performance should be enhanced by increased rate spreads generated by our ability to react quickly to such movements.
Although economic conditions are still challenging, residential sales in our local markets continue to show signs of improvement. Our residential real estate markets have benefited because sales activity has increased and excess inventories of available homes that were common during the recession have come down as the market continues to absorb existing product. As a historically high growth area, relocation sales have typically represented a sizable portion of our local real estate market but previously failed to keep pace in recent years because job growth, while positive, has been inconsistent. Although our local area's unemployment rate has continued to drop over the past two years, further declines are necessary for the Company's local markets to be considered back to pre-recession levels. When the area's employment shows further improvement, our markets and our performance should also follow.
The Company provided $37,500 and $32,500, respectively, during the current quarter and the same quarter last year in loan loss provisions. The Company had no loan charge-offs during the current quarter and $10,639 in charge-offs during the quarter ended December 31, 2013. The Company's loan loss allowances amounted to approximately 2.44% of total loans outstanding at December 31, 2014. Foreclosed assets and non-performing loans amounted to $1,037,450 and $2,572,630 at December 31, 2014 and 2013, respectively.
Total assets of the Company amounted to $112,532,900 at December 31, 2014. Total loans receivable and deposits outstanding at December 31, 2014 amounted to $67,792,700 and $88,697,350, respectively. Wake Forest Bancshares Inc.'s tier 1 core capital ratio was 19.86% at December 31, 2014.
Wake Forest Bancshares, Inc. has 1,150,097 shares of common stock outstanding. Based in Wake Forest, North Carolina since 1922, the Company conducts business as Wake Forest Federal from its office in Wake Forest, (Wake County), North Carolina.