WAKE FOREST, N.C., Dec. 12, 2017 (GLOBE NEWSWIRE) -- Wake Forest Bancshares, Inc., (OTC BB:WAKE) parent company of Wake Forest Federal Savings and Loan Association, announced today that the Company reported earnings of $969,750 or $0.85 per share for its fiscal year ended September 30, 2017. This year’s results were similar to last year when the Company reported earnings of $982,500 or $0.86 per share. Earnings for the current quarter were reported at $245,550 or $0.22 per share versus $326,150 or $0.29 per share for the quarter ended September 30, 2016.
In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer, stated that the Company was satisfied with this year’s results which continue to be positively impacted by a lack of nonperforming assets and costs associated with foreclosed assets. However, the Company’s returns also continue to be negatively impacted by compressed interest rate margins and flat loan demand. 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 during periods of rising rates. The Federal Reserve has kept interest rates at historic low levels but has gradually begun to raise short term rates. Due to interest rate floors in many of the Company’s loan products, rates would need to continue to rise in the future to have a significant impact on the Company’s performance.
During the current quarter the Company completed a transition to a new Management team when its two senior executive officers both elected to retire. Ms. Sumerlin, Chairman of the Board, announced that Renee H. Shaw will assume the role of President and Chief Executive Officer of the Company and Carter S. Harrell will become the Company’s Senior Vice President and Chief Lending Officer. Ms. Shaw has been a part of the Wake Forest community for more than 35 years, and has worked with three area banks in various senior leadership roles. She brings a wealth of experience in community banking that will allow for a smooth transition and a fresh perspective of operational considerations. Mr. Harrell has over ten years of banking experience with other local institutions in the Wake Forest area and is well known and respected. Ms. Sumerlin stated that the Board of Directors was excited to have such dynamic and experienced local bankers to lead the Company into the future. The Board feels that with these two hires, the Company is well positioned to continue to operate profitably and take advantage of competitive opportunities. As a part of changeover, certain transitional costs had a marginal impact on the current quarter’s results.
Economic conditions and residential home sales in our local markets continue to show strength. Our residential real estate markets have benefited because sales activity and home prices have increased while excess inventories of available homes, once common during the recession, have come down as the market continues to absorb existing product. In addition, our local area’s unemployment rate has held steady or continued to decline slightly. Further employment gains in higher paying industries should enhance our markets and our performance.
The Company restored $160,000 in loan loss provisions during the current year primarily due to a lack of non-performing loans and strong local economic and real estate conditions. In addition, the Company determined that it was not necessary to provide any loan loss provisions during 2016. The Company had no loan charge-offs in its current fiscal year. Loan loss recoveries of $75,000 from previously charged off loans were also recorded earlier in the fiscal year. The Company’s loan loss allowances amounted to approximately 2.52% of total loans outstanding at September 30, 2017. Foreclosed assets and non-performing loans amounted to $-0- and $-0- at September 30, 2017.
Total assets of the Company amounted to $106,740,277 at September 30, 2017. Total loans receivable and deposits outstanding at September 30, 2017 amounted to $55,988,779 and $81,400,787, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 22.55% at September 30, 2017.
Wake Forest Bancshares, Inc. has 1,136,782 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.
Contact:
Renee H. Shaw, CEO
(919) 556-5146