WAKE FOREST, N.C., Dec. 17, 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 $1,235,550 or $1.13 per share for its fiscal year ended September 30, 2023. The Company’s earnings for the prior fiscal year were $1,170,850 or $1.06 per share. Earnings for the current quarter were reported at $325,400 or $0.30 per share versus $268,550 or $0.24 per share for the quarter ended September 30, 2020.
Renee H. Shaw, President and Chief Executive Officer, stated that the Company’s earnings were reflective of improving conditions associated with the re-opening of our economies from COVID 19 pandemic restrictions. The Company’s fiscal year results exceeded expectations and budgetary amounts established at the beginning of its fiscal year, particularly in light of the Federal Reserve Board’s policies that have maintained short term interest rates at historically low levels, a decision initiated in March of 2020 at the start of the Pandemic. As a result, the Company’s overall interest rate margin was 3.06% for its current fiscal year, down from its 3.23% margin during the height of the Pandemic a year earlier and significantly less than the 3.69% margin in 2019 prior to the Fed’s actions to significantly lower interest rates to support the weakened economy caused by COVID 19.
While economic conditions continue to show steady if slowing 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 strong during the past year not only due to historically low mortgage rates, but also because of housing demand coupled with sizable gains in home prices and extremely tight residential inventories.
The Company’s loan portfolio has grown slightly from the level outstanding a year ago. The Company has been pleased with its lending performance during the Pandemic, particularly since the size of the Company’s loan portfolio was never distorted by any short term PPP loans. In addition, the credit quality of our loan portfolio has been resilient, perhaps because widespread financial assistance in the form of stimulus payments, low interest government supported loans, and enhanced unemployment insurance payments have concealed the potential longer term effects of the Pandemic. During the spring of 2020 the Company provided loan modifications to certain borrowers adversely and directly impacted by the Pandemic but all of these modified loans returned to scheduled payment status in September 2020, and as of September 30, 2023 no additional modifications have been granted. The Company was delighted that it had no reportable problem assets or loan charge-offs during the current year. As a result, no additional loan loss provisions were considered necessary because of the healthy level of our existing loss allowances. The Company’s loan loss allowance amounted to approximately 2.07% of total loans outstanding at September 30, 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 $110,479,350 at September 30, 2023. Total loans receivable and deposits outstanding at September 30, 2023 amounted to $69,672,000 and $82,733,550, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 24.00% at September 30, 2023. Wake Forest Bancshares, Inc. has 1,070,046 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
(919) 556-5146
