Wake Forest Bancshares, Inc. Announces Third Quarter Results

WAKE FOREST, N.C., July 17, 2018 (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 $333,777 or $0.30 per share for its quarter ended June 30, 2018.  The Company reported earnings of $257,982 or $0.23 per share for the same quarter a year earlier.  Earnings for the first nine months of the Company’s fiscal year were reported at $670,842 or $0.60 per share versus $724,203 or $0.63 per share for the same nine month period a year earlier.  Excluding the deferred tax adjustment of $266,288 in the Company’s first quarter associated with the passage of the U.S. tax-overhaul legislation, earnings would have been $937,130 ($0.83 per share) for the nine months ending June 30, 2018.

In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer, stated that the Company is fortunate to be located in the vibrant Triangle market which is consistently recognized as one to the top areas in the country for economic activity and quality of life issues.  The Company was very pleased with the current quarter’s results which continue to be positively impacted by a lack of nonperforming loans as well as rising interest rate margins created by greater loan demand and upward rate movements initiated by the Federal Reserve.  The Company’s interest rate margin was 3.36% during the current quarter compared to 2.93% for the same quarter a year earlier.

Economic conditions and residential home sales continue to show strength in our local markets.  Our residential real estate markets have benefited because sales activity and home prices have increased while excess inventories of available homes is minimal.  In addition, our local area’s unemployment rate has continued to decline slightly.  Further employment gains in higher paying industries should enhance our markets and our performance.  

Due to growth in its loan portfolio, the Company added $15,000 in loan loss provision during the current quarter as compared to a $45,000 loan loss recovery reported in the prior year’s third quarter.  The Company had no loan charge-offs in its current quarter or in the same quarter of the prior year.  The Company’s loan loss allowances amounted to approximately 2.22% of total loans outstanding at June 30, 2018.  Foreclosed assets and non-performing loans amounted to $-0- and $-0-, respectively, at June 30, 2018.

Total assets of the Company amounted to $104,797,534 at June 30, 2018.  Total loans receivable and deposits outstanding at June 30, 2018 amounted to $63,733,289 and $79,154,757, respectively.  Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 23.20% at June 30, 2018.

Wake Forest Bancshares, Inc. has 1,123,302 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