WAKE FOREST, N.C., Jan. 19, 2023 (GLOBE NEWSWIRE) — Wake Forest Bancshares, Inc., (OTC: WAKE) parent company of Wake Forest Federal Savings and Loan Association, announced today that the Company reported earnings of $337,064 or $0.31 per share for its quarter ended December 31, 2023. The Company reported earnings of $304,551 or $0.28 per share for the same quarter a year earlier.
Renee H. Shaw, President and Chief Executive Officer stated that the Company’s earnings were reflective of both improving economic conditions associated with the easing of COVID 19 pandemic restrictions and static Federal Reserve policies. The Company’s first quarter results exceeded expectations and budgetary amounts established at the beginning of its fiscal year but are also indicative of Federal Reserve Board’s actions that have maintained short term interest rates at historically low levels, a decision initiated in March of 2020 at the start of the Pandemic. The Company’s balance sheet is intentionally rate sensitive in order to avoid prolonged interest rate risk. As a result, the Company’s overall interest rate margin was 3.23% for its current quarter, down from its 3.56% margin for the comparable quarter two years ago prior to the Pandemic. When interest rates return to a more historical norm, the Company’s interest rate margin should trend upward accordingly.
While economic conditions continue to show steady improvement, residential home sales in our local markets have remained robust throughout the Pandemic. Our lending environment benefits because we are a part of the Research Triangle area which is generally recognized as one of the top regions in the country for innovation, growth, economic activity and quality of life factors. Our real estate markets have remained exceedingly strong during the current quarter not only due to historically low mortgage rates, but also because of continued housing demand coupled with sizable gains in home prices and extremely tight residential inventories.
The Company’s loan portfolio dropped during the current quarter. While our lending performance throughout the Pandemic has been particularly strong, seasonal factors associated with an extremely tight housing market and a drop in the Company’s sizable construction loan portfolio created what we anticipate to be a temporary decline. The credit quality of our loan portfolio has continued to be resilient. The Company was delighted that it had no reportable problem assets or loan charge-offs during the current quarter. As a result, no additional loan loss provisions during the current quarter were considered necessary because of the healthy level of our existing loss allowances. The Company’s loan loss allowance amounted to approximately 2.22% of total loans outstanding at December 31, 2023. The Company will continue to evaluate whether any lingering effects from the Pandemic impact our credit quality and consider future adjustments to its loss allowances as necessary.
Total assets of the Company amounted to $108,285,376 at December 31, 2023. Total loans receivable and deposits outstanding at December 31, 2023 amounted to $64,939,576 and $80,206,055, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 24.69% at December 31, 2023. Wake Forest Bancshares, Inc. has 1,070,046 shares of common stock outstanding. Based in Wake Forest, North Carolina, the Company conducts business as Wake Forest Federal from its office in Wake Forest, (Wake County), North Carolina and is celebrating its 100th year of existence this year.
Contact: Renee H. Shaw, CEO
(919) 556-5146
