WAKE FOREST, N.C., Jan. 20, 2021 (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 $304,551 or $0.28 per share for its quarter ended December 31, 2020. The Company reported earnings of $350,678 or $0.32 per share for the same quarter a year earlier.
In announcing the earnings, Renee H. Shaw, President and Chief Executive Officer stated that given the challenging times, the Company’s quarterly results exceeded our expectations and the budgetary amounts established at the beginning of its fiscal year. However, earnings for the current quarter continue to be adversely impacted by the Federal Reserve Board’s policy decision in March of 2020 to decrease rates by a combined 150 basis points as a result of the economic impact of the COVID 19 pandemic. As a result, short term rates remain effectively at or near -0- percent and the Company’s overall interest rate margin contracted from 3.56% during the comparable quarter a year ago to 3.07% for its current quarter ended December 31, 2020.
Economic conditions and residential home sales continue to be stable in our local markets. Our real estate markets benefit because we are a part of the Research Triangle area which is consistently recognized as one of the top regions in the country for innovation, economic activity and quality of life issues. During the most recent quarter, sales activity remained resilient not only due to historically low mortgage rates, but also because of sizable gains in home prices during the past six months and extremely tight housing inventories. There has been no significant effect on the local housing market as of yet from the COVID 19 pandemic.
The Company’s loan portfolio has largely remained unchanged from levels outstanding a year ago. The Company was particularly pleased with its lending performance during the current quarter because given the economic impact of the pandemic, a significant decline was possible, particularly since the size of the Company’s loan portfolio was not distorted by any short term PPP loans. In addition, the pandemic has yet to impact the credit quality of our loan portfolio, perhaps because pandemic financial assistance in the form of stimulus payments, low interest government supported loans, and enhanced unemployment insurance payments have masked the potential long term effects of the economic slowdown. During the spring of 2020 the Company provided loan modifications to certain borrowers adversely and directly impacted by the pandemic but those accommodations ended in September of 2020 and all modified loans have since returned to scheduled payment status. The Company was delighted to report that it had no problem assets or loan charge-offs during the current quarter. As a result, no additional loan loss provisions were considered necessary because of our healthy level of existing loss allowances. The Company’s loan loss allowance amounted to approximately 2.13% of total loans outstanding at December 31, 2020. The Company will continue to evaluate the effects of the lingering pandemic on credit quality and consider any future accommodations or adjustments to its loss allowances.
Total assets of the Company amounted to $108,818,331 at December 31, 2020. Total loans receivable and deposits outstanding at December 31, 2020 amounted to $67,649,933 and $81,074,284, respectively. Wake Forest Bancshares Inc.’s tier 1 capital leverage ratio was 24.29% at December 31, 2020. Wake Forest Bancshares, Inc. has 1,098,190 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