WAKE FOREST, N.C., April 19, 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 $136,346 or $0.12 per share for the quarter ended March 31, 2011, compared to earnings of $85,237 or $0.07 per share for the same quarter a year earlier. Earnings for the first six months of the Company's fiscal year were reported at $283,204 or $0.25 per share versus $138,882 or $0.12 per share for the same six 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 2.28% at March 31, 2011 compared to 2.21% at March 31, 2010.
The depressed economic conditions and tepid 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 elected to forego home purchases in the interim.
Earnings for the current quarter and first six months of the year were positively impacted by lower loss provisions, charge-offs and expenses associated with foreclosed loans. The Company provided $66,650 and $136,650 during the quarter and six months ended March 31, 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 $90,000 and $120,000 during the quarter and six month period ended March 31, 2011, respectively. In comparison, the Company added $108,900 and $233,900 in loan loss provisions and write downs to foreclosed properties in the three and six months ended March 31, 2010. The Company also incurred $47,450 and $88,400 in foreclosure related expense and loss during the quarter and six months ended March 31, 2011. Such costs totaled $35,200 and $145,250 during the same quarter and six month period a year earlier. The Company's loan loss allowances amounted to approximately 1.86% of total loans outstanding at March 31, 2011.
Total assets of the Company amounted to $113.6 million at March 31, 2011. Total loans receivable and deposits outstanding at March 31, 2011 amounted to $68.1 million and $91.9 million, respectively. Wake Forest Bancshares Inc.'s capital to assets ratio was 18.36% at March 31, 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.