WAKE FOREST, N.C., Dec. 17, 2015 (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 $879,800 or $0.76 per share for its fiscal year ended September 30, 2015. This year’s results compared favorably to last year when the Company reported earnings of $850,450 or $0.74 per share. Earnings for the current quarter were reported at $195,150 or $0.17 per share versus $209,000 or $0.18 per share for the quarter ended September 30, 2014.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that the Company was satisfied with the current year’s results which continue to be positively impacted by declining levels of nonperforming assets and the costs associated with foreclosed assets. However, the Company’s returns also continue to be negatively impacted by compressed interest rate margins. The Company invests excess liquidity in short term liquid assets and its loan portfolio primarily has shorter maturities or variable rates in order to guard against interest rate risk exposure. The Federal Reserve has kept interest rates at historic lows since December of 2008 but when rates rise in the future, the Company’s performance should be enhanced by increased rate spreads generated by our ability to react quickly to such movements.
Economic conditions and residential home sales in our local markets continue to show signs of improvement. Our residential real estate markets have benefited because sales activity and home prices have increased while excess inventories of available homes once common in the recession have come down as the market continues to absorb existing product. As a historically high growth area, relocation sales have typically represented a sizable portion of our local real estate market but are somewhat less important today because job growth, while positive, has been inconsistent. Although our local area’s unemployment rate has continued to decline, with further employment gains, our markets and our performance should also benefit.
The Company provided $162,500 and $100,000, respectively, during the current year and prior year in loan loss provisions. The Company had loan charge-offs during the current year of $131,000 associated with partial write downs of loans that were collateral deficient although the borrowers continue to make payments. The Company also took an additional charge of $120,000 associated with a loan foreclosure in which the Company is actively litigating for recovery. The Company had total loan charge-offs of $100,000 in the prior year. The Company’s loan loss allowances amounted to approximately 2.49% of total loans outstanding at September 30, 2015. Foreclosed assets and non-performing loans amounted to $698,815 and $1,056,370 at September 30, 2015 and 2014, respectively.
Total assets of the Company amounted to $106,593,450 at September 30, 2015. Total loans receivable and deposits outstanding at September 30, 2015 amounted to $61,517,600 and $82,335,750, respectively. Wake Forest Bancshares Inc.’s tier 1 capital ratio was 21.38% at September 30, 2015.
Wake Forest Bancshares, Inc. has 1,149,293 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.