Wake Forest Bancshares, Inc. Announces Year End Results
December 20 2013 - 9:00AM
Wake Forest Bancshares, Inc., (OTCBB:WAKE) parent company of Wake
Forest Federal Savings and Loan Association, announced today that
the Company reported earnings of $689,300 or $0.60 per share for
its year ended September 30, 2013. This year's results compared
favorably to last year when the Company reported earnings of
$597,400 or $0.52 per share. Earnings for the current quarter were
reported at $165,250 or $0.14 per share versus $198,150 or $0.17
per share for the quarter ended September 30, 2012.
In announcing the earnings, Robert C. White, President and Chief
Executive Officer, stated that while the Company was pleased with
the annual results, which exhibited a 15% improvement from the
previous year, the Company's returns continue to be impacted by
compressed interest rate margins. To guard against 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, residential
sales in our local markets have shown signs of recovery.
Improvement in our residential real estate markets has occurred
primarily because the excess inventories of available homes which
were common during the recession have come down as the market
continues to absorb existing product. While sales activity has
increased quarter over quarter for most of the past year, it
remains at levels below what was historically normal for the
Company's markets in the pre-recession years. As a historically
high growth area, relocation sales have typically represented a
sizable portion of our local real estate market but have failed to
keep pace in recent years because of limited job opportunities.
When the area's employment shows consistent improvement, our
markets and our performance should quickly follow.
The Company provided $152,500 and $29,500, respectively, during
the current year in loan loss provisions and write downs to the
value of its foreclosed properties. Such provisions and write downs
amounted to $220,000 and $147,500 for the same periods a year
earlier. The Company had no loan charge-offs during the current
year. Loans charged off amounted to $52,500 during the year ended
September 30, 2012. The Company's loan loss allowances amounted to
approximately 2.38% of total loans outstanding at September 30,
2013. Foreclosed assets and non-performing loans amounted to
$2,068,800 and $2,113,543 at September 30, 2013 and September 30,
2012, respectively.
Total assets of the Company amounted to $115,550,600 at
September 30, 2013. Total loans receivable and deposits outstanding
at September 30, 2013 amounted to $68,218,550 and $92,928,450,
respectively. Wake Forest Bancshares Inc.'s capital to assets ratio
was 18.75% at September 30, 2013.
Wake Forest Bancshares, Inc. has 1,149,297 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)
Historical Stock Chart
From May 2024 to Jun 2024
Wake Forest Bancshares (PK) (USOTC:WAKE)
Historical Stock Chart
From Jun 2023 to Jun 2024