WAKE FOREST, N.C., Dec. 20, 2013 (GLOBE NEWSWIRE) -- 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
Source:Wake Forest Bancshares, Inc.