WAKE FOREST, N.C., April 16, 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 $176,094 or $0.15 per share for its quarter ended March 31, 2013, compared to earnings of $97,506 or $0.08 per share for the same quarter one year earlier. Earnings for the first six months of the Company's fiscal year were reported at $353,928 or $0.31 per share versus $248,553 or $0.21 per share for the same six month period a year earlier.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that while the Company was pleased with the results, which were significantly higher than the previous year, the Company's returns 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 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, 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. While sales activity has increased during the current quarter and for most of the past year, it remains at levels 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. When the area's employment situation improves, our markets and our performance should quickly follow.
The Company provided $48,000 and $123,500, respectively, during the three and six month periods ended March 31, 2013 in loan loss provisions and write downs to the value of its foreclosed properties. Such provisions and write downs amounted to $150,000 and $218,500 for the same periods a year earlier. The Company had no loan charge-offs during the current quarter or for the six months ended March 31, 2013. Loans charged off amounted to $45,000 during the three and six months ended March 31, 2012. The Company's loan loss allowances amounted to approximately 2.25% of total loans outstanding at March 31, 2013. Foreclosed assets and non-performing loans amounted to $2,593,756 at March 31, 2013.
Total assets of the Company amounted to $114,858,431 at March 31, 2013. Total loans receivable and deposits outstanding at March 31, 2013 amounted to $70,084,044 and $92,435,418, respectively. Wake Forest Bancshares Inc.'s capital to assets ratio was 18.68% at March 31, 2013.
Wake Forest Bancshares, Inc. has 1,151,347 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.