Wake Forest Bancshares, Inc. Announces Third Quarter Results
WAKE FOREST, N.C., July 18, 2011 /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 $116,296 or $0.10 per share for the quarter ended June 30, 2011, compared to earnings of $84,056 or $0.07 per share for the same quarter a year earlier. Earnings for the first nine months of the Company's fiscal year were reported at $399,500 or $0.35 per share versus $222,938 or $0.19 per share for the same nine month period a year earlier.
In announcing the earnings, Robert C. White, President and Chief Executive Officer, stated that while the current quarter's results continue to be impacted by compressed interest rate margins, the Company has shown improvement in its level of non-performing assets and associated loan loss provisions, charge-offs, and lesser costs related to foreclosed properties from a year earlier. A significant portion of the Company's loans and investments have either shorter maturities or variable rates and therefore the portfolios tend to move in tandem with the prime rate. 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 to those rate movements to a greater extent than has the Company's deposit base. The Company's net interest margin was 2.33% at June 30, 2011 compared to 2.42% at June 30, 2010.
Depressed economic conditions and a weakened housing market that have lingered for the past three years continue to negatively influence the Company's operations. Real estate lending, including construction lending, are at levels significantly below what is considered normal for the Company's markets. As a high growth area, relocation sales have historically 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 market has also declined as inventories of new and existing homes have increased primarily because the economy has created uncertainty and buyers have either elected to forego home purchases in the interim or are unable to qualify.
The Company provided $135,000 and $271,650 during the quarter and nine months ended June 30, 2011, respectively, in loan loss provisions and write downs to the value of its foreclosed properties. In addition, the Company charged off loans amounting to $121,663 and $241,663 during the quarter and nine month period ended June 30, 2011, respectively. In comparison, the Company added $174,500 and $408,396 in loan loss provisions and write downs to foreclosed properties in the three and nine months ended June 30, 2010. The Company also incurred $6,084 and $52,839 in foreclosure related expense and loss during the quarter and nine months ended June 30, 2011. Such costs totaled $34,446 and $189,299 during the same quarter and nine month period a year earlier. The Company's loan loss allowances amounted to approximately 1.84% of total loans outstanding at June 30, 2011.
Total assets of the Company amounted to $114,454,678 at June 30, 2011. Total loans receivable and deposits outstanding at June 30, 2011 amounted to $68,114,839 and $92,574,144, respectively. Wake Forest Bancshares Inc.'s capital to assets ratio was 18.29% at June 30, 2011.
Wake Forest Bancshares, Inc. has 1,155,210 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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