Wake Forest Bancshares Inc., the parent company of Wake Forest Federal Savings and Loan Association, reported second-quarter earnings that rose 22 percent due to strong demand in home lending.

The company reported second-quarter earnings of $381,861, or 34 cents per share, up from $311,234, or 28 cents per share, in the same quarter a year earlier.

CEO Renee H. Shaw stated that the company is pleased with the quarter’s results.

According to the earnings report, the company has been affected by the Federal Reserve Board raising interests.

Wake Forest Federal’s interest rate margin increased to 3.62 percent in the current quarter, up from 3.27 percent reported at the end of the last fiscal year, which finished on Sept 30, 2018. The new interest rate margin is higher than the 3.19 percent rate in the second quarter last year.

The company stated that “economic conditions and residential home sales continue to show strength” in the company’s markets.

Wake Forest Bancshares total assets amounted to $104 million, total loans receivable amounted to $68.1 million, and total loans outstanding amounted to $77.9 million at the end of the second quarter.

Although the company’s loan portfolio grew this quarter, the report states that “a minor amount of loan loss provisions were added in the current quarter even though [their] portfolio currently has no problem loans. The company provided $15,000 in loss provisions and had no loan charge-offs in the current quarter.”

The company’s loan loss allowance was approximately 2.11 percent of total loans outstanding at the end of the second quarter.

Wake Forest Bancshares stock was at $18.81 on Thursday, down $1.94, or 9.35 percent.