EXHIBIT 99
WAKE FOREST BANCSHARES, INC.
302 S. BROOKS STREET
WAKE FOREST, NORTH CAROLINA 27587
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FOR IMMEDIATE RELEASE
CONTACT: ROBERT C. WHITE, CEO
JULY 22, 2003
(919)-556-5146
WAKE FOREST BANCSHARES, INC.
ANNOUNCES THIRD QUARTER RESULTS
Wake Forest, North Carolina. 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 $306,910 or
$0.27 per share for the quarter ended June 30, 2003, compared to earnings of
$290,858 or $0.25 per share for the same quarter a year earlier. Earnings for
the first nine month's of the Company's fiscal year were reported at $894,054 or
$0.78 per share versus $810,545 or $0.70 per share for the same nine-month
period a year earlier.
In announcing the earnings, Robert C. White, President and Chief Executive
Officer, pointed out that he was pleased that the Company's quarterly and
year-to-date results exceeded expectations. He also cautioned that the Company's
interest rate margins continue to be squeezed due to the Federal Reserve's
current policy of historic low rates. The Company has made attempts to control
its interest rate risk by ensuring that its interest-earning portfolios are
relatively short in duration. In doing so, the Company believes it has
sacrificed possible higher earnings in the short run for longer-term earnings
stability. The Company's net interest margin was 3.62% during the current
quarter as compared to 3.53% a year earlier. In addition, soft economic
conditions continue to hamper current loan demand in the Company's primary
lending area. However, refinancing activity spurred by the current low interest
rate environment has aided the Company's venture into the secondary lending
market.
The Company had previously announced a quarterly dividend of $0.14 per share for
shareholders of record as of June 30, 2003, payable on July 10, 2003. The
current dividend represents the 29th consecutive quarterly dividend paid by the
Company and an increase in the quarterly dividend rate of $0.02 per share.
Wake Forest Bancshares Inc.'s return on average assets was 1.40% for the current
quarter and its efficiency ratio was 35.65% for the quarter. At June 30, 2003,
the Company's ratios of non-performing loans to total loans and non-performing
assets to total assets equaled 1.21% and 2.21%, respectively. However, the
Company has sales contracts on approximately 60% of its non-performing assets at
June 30, 2003. The Company provided $30,000 in loan loss provisions during the
current quarter and raised its percentage of loan loss allowances to total loans
from 0.61% at the start of its fiscal year to 0.93% at June 30, 2003. The
Company believes that it is adequately reserved for any possible loan losses at
this time. Total assets of the Company amounted to $87.7 million at June 30,
2003. Total net loans receivable and deposits outstanding at June 30, 2003
amounted to $65.8 million and $71.0 million, respectively.
Wake Forest Bancshares, Inc. has 1,145,496 shares of common stock outstanding.
Based in Wake Forest, North Carolina since 1922, the Company conducts business
as Wake Forest Federal Savings & Loan Association from its office in Wake
Forest, (Wake County), North Carolina.