WAKE FOREST, N.C., July 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 $220,869 or $0.19 per share for its quarter ended June 30, 2015. The Company reported earnings of $250,679 or $0.22 per share for the same quarter a year earlier. Earnings for the first nine months of the Company’s fiscal year were reported at $684,662 or $0.59 per share versus $641,434 or $0.56 per share for the same nine month period a year earlier.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that the Company was satisfied with the current quarter’s results which continue to be positively impacted by declining levels of nonperforming assets and the costs associated with foreclosed assets. However, the Company’s returns also continue to be negatively impacted by compressed interest rate margins. The Company invests excess liquidity in short term liquid assets and its loan portfolio primarily has shorter maturities or variable rates in order to guard against interest rate risk exposure. 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.
Economic conditions and residential home sales in our local markets continue to show signs of improvement. Our residential real estate markets have benefited because sales activity and home prices have increased while excess inventories of available homes once common in 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 are somewhat less important today because job growth, while positive, has been inconsistent. Although our local area’s unemployment rate has continued to decline, with further employment gains, our markets and our performance should also benefit.
The Company provided $52,500 and $15,000, respectively, during the current quarter and the same quarter last year in loan loss provisions. The Company had loan charge-offs during the current quarter of $131,000 associated with partial write downs of loans that were collateral deficient although the borrowers continue to make payments. The Company also took an additional charge of $120,000 associated with a loan foreclosure in which the Company is actively litigating for recovery. The Company’s loan loss allowances amounted to approximately 2.24% of total loans outstanding at June 30, 2015. Foreclosed assets and non-performing loans amounted to $936,295 and $1,199,650 at June 30, 2015 and 2014, respectively.
Total assets of the Company amounted to $109,246,762 at June 30, 2015. Total loans receivable and deposits outstanding at June 30, 2015 amounted to $62,518,521 and $85,114,852, respectively. Wake Forest Bancshares Inc.’s tier 1 capital ratio was 20.76% at June 30, 2015.
Wake Forest Bancshares, Inc. has 1,149,493 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.