Wake Forest Bancshares, Inc. Announces Second Quarter Results
April 16 2013 - 10:00AM
Wake Forest Bancshares, Inc., (OTCBB:WAKE) parent company of Wake
Forest Federal Savings and Loan Association, announced today that
the Company reported earnings of $176,094 or $0.15 per share for
its quarter ended March 31, 2013, compared to earnings of $97,506
or $0.08 per share for the same quarter one year earlier. Earnings
for the first six months of the Company's fiscal year were reported
at $353,928 or $0.31 per share versus $248,553 or $0.21 per share
for the same six month period a year earlier.
In announcing the earnings, Robert C. White, President and Chief
Executive Officer, stated that while the Company was pleased with
the results, which were significantly higher than the previous
year, the Company's returns continue to be impacted by compressed
interest rate margins. In order to protect the Association's
portfolios from interest rate risk, a significant portion of the
Company's loans and investments have shorter maturities or variable
rates. The Federal Reserve has kept interest rates at historic lows
since December of 2008 and the Company's interest rate sensitive
loan and investment portfolios have adjusted downward to those rate
movements to a greater extent than has the Company's deposit base.
However, when rates do rise, 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, real estate
lending in our local markets has begun to show some signs of
recovery. Improvement in our residential real estate markets has
occurred primarily because excess inventories of available homes
have come down as the market has started to absorb existing
product. While sales activity has increased during the current
quarter and for most of the past year, it remains at levels below
what is considered normal for the Company's markets. As a
historically high growth area, relocation sales have typically
represented a sizable portion of our local real estate market but
have suffered during this period because of limited job
opportunities. When the area's employment situation improves, our
markets and our performance should quickly follow.
The Company provided $48,000 and $123,500, respectively, during
the three and six month periods ended March 31, 2013 in loan loss
provisions and write downs to the value of its foreclosed
properties. Such provisions and write downs amounted to $150,000
and $218,500 for the same periods a year earlier. The Company had
no loan charge-offs during the current quarter or for the six
months ended March 31, 2013. Loans charged off amounted to $45,000
during the three and six months ended March 31, 2012. The Company's
loan loss allowances amounted to approximately 2.25% of total loans
outstanding at March 31, 2013. Foreclosed assets and non-performing
loans amounted to $2,593,756 at March 31, 2013.
Total assets of the Company amounted to $114,858,431 at March
31, 2013. Total loans receivable and deposits outstanding at March
31, 2013 amounted to $70,084,044 and $92,435,418, respectively.
Wake Forest Bancshares Inc.'s capital to assets ratio was 18.68% at
March 31, 2013.
Wake Forest Bancshares, Inc. has 1,151,347 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: Robert C. White,CEO
(919) 556-5146
Wake Forest Bancshares (PK) (USOTC:WAKE)
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