WAKE FOREST, N.C., Dec. 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 $1,033,800 or $0.92 per share for its fiscal year ended September 30, 2018. The Company earnings for the prior fiscal year were $969,750 or $0.85 per share. Earnings for the current quarter were reported at $362,950 or $0.32 per share versus $245,550 or $0.22 per share for the quarter ended September 30, 2017. Excluding the expense of the deferred tax adjustment of $266,300 in the Company’s first quarter associated with the passage of the U.S. tax-overhaul legislation, earnings for the current fiscal year would have been $1,300,100 ($1.15 per share).
In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer, stated that the Company was elated with the current year’s results, the highest 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 pleased to report that it had no problem assets at any time during its fiscal year ended September 30, 2018. In addition, the Company’s interest rate margin expanded to 3.27% during its current fiscal year from 2.89% reported for its fiscal year ended September 30, 2017.
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 vibrant Research Triangle area which is consistently recognized as one of the top regions in the country for economic activity and quality of life attributes. Throughout the current fiscal year sales activity and home prices have increased while inventories of available homes have tightened. 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 significant growth in its loan portfolio during the current fiscal year, only $15,000 in loan loss provisions were necessary this year because of our sufficient level of loan loss allowances and lack of problem loans. The Company had no loan charge-offs in the current year and its loan loss allowance amounted to approximately 2.22% of total loans outstanding at September 30, 2018. Foreclosed assets and non-performing loans amounted to $-0- and $-0-, respectively, at September 30, 2018.
Total assets of the Company amounted to $103,853,850 at September 30, 2018. Total loans receivable and deposits outstanding at September 30, 2018 amounted to $63,823,650 and $78,022,900, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 23.65% at September 30, 2018.
Wake Forest Bancshares, Inc. has 1,121,802 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