Wake Forest Bancshares, Inc. Announces First Quarter Results
WAKE FOREST, N.C., Jan. 23, 2019 (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 $420,884 or $0.38 per share for its quarter ended December 31, 2018. The Company reported earnings of $25,850 or $0.02 per share for the same quarter a year earlier. The Company’s quarterly results last year were significantly impacted by the U.S. tax-overhaul legislation which caused the Company’s deferred tax assets to become less valuable. Substantially all financial institutions have deferred tax assets which were required to be written down because such tax assets were established when corporate tax rates were at 35% and the tax legislation lowered that rate to 21%. The rate reduction triggered a one-time write down that amounted to $266,288 during the December 31, 2017 quarter. Without regard to this adjustment, the Company’s results would have been $292,119 or $0.26 per share for the prior year’s first quarter.
In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer, stated that the Company was pleased with the current quarter’s results, the highest quarterly results in over ten years. The Company’s operations continue to be positively impacted by a lack of nonperforming loans as well as by rising interest rate margins created by greater loan demand and upward rate movements initiated by the Federal Reserve. The Company was delighted to report that it continued to have no problem assets at any time during the current quarter. In addition, the Company’s interest rate margin expanded to 3.65% during its current quarter from 3.27% reported for its fiscal year ended September 30, 2018 and 3.01% reported for the same quarter a year earlier.
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 attributes. During the current quarter, sales activity has remained strong, 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.
Although the Company had added growth in its loan portfolio during the current quarter, 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 2.19% of total loans outstanding at December 31, 2018.
Total assets of the Company amounted to $104,307,895 at December 31, 2018. Total loans receivable and deposits outstanding at December 31, 2018 amounted to $64,804,087 and $77,969,904, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 23.91% at December 31, 2018.
Wake Forest Bancshares, Inc. has 1,123,452 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
