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Wake Forest Bancshares, Inc. Announces First Quarter Results
By: PR Newswire
Jan. 23, 2013 09:23 AM
WAKE FOREST, N.C., Jan. 23, 2013 /PRNewswire/ -- Wake Forest Bancshares, Inc., (OTC Electronic Bulletin Board: WAKE) parent company of Wake Forest Federal Savings and Loan Association, announced today that the Company reported earnings of $177,850 or $0.15 per share for its quarter ended December 31, 2012. The current quarter's results compare favorably to last year when the Company reported earnings of $151,047 or $0.13 per share for its quarter ended December 31, 2011.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that the Company's earnings continue to be impacted by compressed interest rate margins. In order to protect the Association's portfolios from interest rate risk, a significant portion of the Company's loans and investments have either 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, in a rising rate environment, the Company's performance would be enhanced by increased rate spreads because of our ability to react quickly to such movements.
Although lackluster economic conditions persist, real estate lending in our local markets has begun to show some signs of recovery. Improvement in our residential real estate markets has occurred primarily because excess inventories of available homes have come down as the market has started to absorb existing product and significant new starts have been delayed. In addition, while sales activity increased during the current quarter and for most of the past year, it remains at levels well below what is considered normal for the Company's markets. As a historically high growth area, relocation sales have typically represented a sizable portion of our local real estate market but have suffered during this period because of limited job opportunities. The broader local real estate markets have under performed largely because the economy has created uncertainty and buyers have either elected to forego home purchases in the interim or have been unable to qualify for financing. When the area's employment situation improves, our markets and our performance should quickly follow.
The Company provided $75,500 and $68,500, respectively, during the current quarter and the same three month period a year earlier in loan loss provisions and write downs to the value of its foreclosed properties. The Company had no loans charged off during the current quarter. The Company also incurred $14,350 in foreclosure related expense and a net profit $10,650 from the sale of foreclosed properties during the quarter ended December 31, 2012. In comparison, the Company incurred $21,900 in foreclosure related expense and a net profit of $9,300 from disposing of foreclosed properties during the quarter ended December 31, 2011. The Company's loan loss allowances amounted to approximately 2.17% of total loans outstanding at December 31, 2012. Foreclosed assets and non-performing loans amounted to $2,558,200 at December 31, 2012.
Total assets of the Company amounted to $113,497,800 at December 31, 2012. Total loans receivable and deposits outstanding at December 31, 2012 amounted to $70,813,500 and $91,124,700, respectively. Wake Forest Bancshares Inc.'s capital to assets ratio was 18.88% at December 31, 2012.
Wake Forest Bancshares, Inc. has 1,154,535 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.
SOURCE Wake Forest Bancshares, Inc.
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