WAKE FOREST, N.C., Jan. 22, 2020 (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 $350,678 or $0.32 per share for its quarter ended December 31, 2019. The Company reported earnings of $420,884 or $0.38 per share for the same quarter a year earlier.
In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer, stated that while the Company was pleased with the current quarter’s results, earnings were adversely impacted by Federal Reserve rate movements over the past six months. The Fed has decreased rates three times by a combined 75 basis points beginning in July of 2019. As a result, the Company’s interest rate margins contracted from 3.65% during its December 2018 quarter to 3.56% for its most recent quarter. In addition, the Company has incurred approximately $50,000 in expense associated with a core processing conversion during the current quarter. However, the Company’s operations continue to be positively impacted by the absence of nonperforming assets and the lack of need for additional loan loss provisions. The Company was delighted to report that it had no problem assets at any time during the current quarter.
Economic conditions and residential home sales continue to show strength in our local markets. Our real estate markets have benefited because we are a part of the Research Triangle area which is consistently recognized as one of the top regions in the country for economic activity and quality of life issues. During the current quarter, sales activity has remained resilient, home prices have increased, and inventories of available homes have continued to remain tight. In addition, our local area’s unemployment rate has continued to decline slightly and consistently remains one of the lowest in North Carolina.
The Company’s loan portfolio declined slightly from the previous quarter but was up approximately 5% from the same period last year. No additional loan loss provisions were necessary this quarter because of our sufficient level of loan loss allowances and lack of problem loans. The Company had no loan charge-offs in the current quarter and its loan loss allowance amounted to approximately 2.13% of total loans outstanding at December 31, 2019.
Total assets of the Company amounted to $101,814,959 at December 31, 2019. Total loans receivable and deposits outstanding at December 31, 2019 amounted to $67,748,890 and $74,742,576, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 25.26% at December 31, 2019.
Wake Forest Bancshares, Inc. has 1,100,443 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