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.