EXHIBIT 99.1

WAKE FOREST BANCSHARES, INC.
302 S. BROOKS STREET
WAKE FOREST, NORTH CAROLINA 27587
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FOR IMMEDIATE RELEASE
APRIL 20, 2004

                                                  CONTACT:  ROBERT C. WHITE, CEO
                                                            (919)-556-5146

                          WAKE FOREST BANCSHARES, INC.
                        ANNOUNCES SECOND 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 $250,066 or
$0.22 per share for the quarter ended March 31, 2004, compared to earnings of
$285,655 or $0.25 per share for the same quarter a year earlier. Earnings for
the first six month's of the Company's fiscal year were reported at $503,989 or
$0.43 per share versus $587,150 or $0.51 per share for the same six month period
a year earlier.

In announcing the earnings, Robert C. White, President and Chief Executive
Officer, pointed out that the second quarter earnings were in line with the
Company's expectations. He also stated that the Company's interest rate margins
continue to come under pressure due to the Federal Reserve's current policy of
maintaining historic low rates. The Company seeks to control its interest rate
risk by ensuring that its loan and investment 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 when interest rates
begin to rise. The Company's net interest margin was 3.29% during the current
quarter compared to a margin of 3.38% for the same quarter a year earlier.
Refinancing activity spurred by the low interest rate environment has slowed
considerably during the current year and has resulted in a drop in fee income
from the Company's secondary market activities. However, lending in general, and
especially construction loan activity, has increased in the Company's primary
lending markets.

The Company had previously announced a quarterly dividend of $0.14 per share for
shareholders of record as of March 31, 2004, payable on April 12, 2004. The
current dividend represents the 32nd consecutive quarterly dividend paid by the
Company.

Wake Forest Bancshares Inc.'s return on average assets was 1.15% for the current
quarter and its efficiency ratio was 39.95% for the quarter. Total assets of the
Company amounted to $89.6 million at March 31, 2004. Both total net loans
receivable and deposits outstanding at March 31, 2004 amounted to $72.4 million.

Wake Forest Bancshares, Inc. has 1,145,296 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.