Wake Forest Bancshares, Inc. Announces First Quarter Results
January 22 2014 - 10:12AM
Wake Forest Bancshares, Inc., (OTCBB:WAKE) parent company of Wake
Forest Federal Savings and Loan Association, announced today that
the Company reported earnings of $198,077 or $0.17 per share for
its quarter ended December 31, 2013. The current quarter's results
compared favorably to the same quarter last year when the Company
reported earnings of $177,834 or $0.15 per share.
In announcing the earnings, Robert C. White, President and Chief
Executive Officer, stated that while the Company was pleased with
the quarterly results, 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. While the local area's unemployment rate has
continued to drop over the past two years, further declines are
necessary for the Company's local markets to be considered back to
pre-recession levels. When the area's employment shows further
improvement, our markets and our performance should also
follow.
The Company provided $32,500 and $-0-, respectively, during the
current quarter in loan loss provisions and write downs to the
value of its foreclosed properties. Such provisions and write
downs amounted to $65,000 and $10,500 for the same quarter a year
earlier. The Company had loan charge-offs of $10,639 during
the current quarter. The Company did not incur any loan
charge-offs during the first quarter last year. The Company's
loan loss allowances amounted to approximately 2.52% of total loans
outstanding at December 31, 2013. Foreclosed assets and
non-performing loans amounted to $2,572,630 and $2,558,218 at
December 31, 2013 and 2012, respectively.
Total assets of the Company amounted to $111,364,360 at December
31, 2013. Total loans receivable and deposits outstanding at
December 31, 2013 amounted to $65,297,044 and $88,552,055,
respectively. Wake Forest Bancshares Inc.'s capital to assets
ratio was 19.63% at December 31, 2013.
Wake Forest Bancshares, Inc. has 1,151,747 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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