First Reliance Bancshares Inc.

07/25/2024 | Press release | Distributed by Public on 07/25/2024 14:12

First Reliance Bancshares Reports Second Quarter 2024 Results

First Reliance Bancshares Reports Second Quarter 2024 Results

Company Release - 7/25/2024
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FLORENCE, S.C., July 25, 2024/PRNewswire/ -- First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the second quarter of 2024.

Second Quarter 2024 Highlights

  • Net income increased 91.8% for the second quarter of 2024 to $1.9 million, or $0.24 per diluted share, compared to $1.0 million, or $0.12 per diluted share, for the second quarter of 2023.
  • Net interest income for the quarter was $7.7 million, which represents an increase of $444,800, or 6.2%, compared to the same quarter one year ago. On a linked quarter basis, the increase was $458,100, or 6.4%.
  • Net interest margin increased during the quarter to 3.20% at June 30, 2024, compared to 3.11% at March 31, 2024, and increased 4 basis points compared to the same period in 2023.
  • Total loans held for investment increased $14.2 million, or 7.9% annualized, to $739.4 million at June 30, 2024, from $725.2 million at March 31, 2024.
  • Total deposits increased $18.5 million, or 8.4% annualized, to $899.8 million at June 30, 2024, from $881.3 million at March 31, 2024.
  • Asset quality remained strong with nonperforming assets totaling $310 thousand, or 0.03% of total assets at June 30, 2024, compared to $282 thousand, or 0.03% of total assets at March 31, 2024.
  • Cost of funds for the second quarter of 2024 increased to 2.28% from 2.25% on a linked quarter basis and from 1.67% for the same period in 2023.
  • Book value per share increased $1.05, or 12.9%, from $8.17 per share at June 30, 2023, to $9.22 per share at June 30, 2024. Tangible book value per share increased $1.05, or 13.0%, from $8.08 per share at June 30, 2023, to $9.13 per share at June 30, 2024.
  • In May 2024, the Company's Board approved a stock repurchase program authorizing the purchase of up to $2.0 million of outstanding common stock through expiration of the program on June 30, 2025. In determining stock repurchases, management will consider the following factors: the Company's stock price, expected growth, capital position, alternative uses of capital, liquidity, financial performance, current and expected macroeconomic environment, regulatory requirements and any other relevant factors.

Rick Saunders, Chief Executive Officer, remarked: "We continue to achieve disciplined growth while also emphasizing expense control and sound asset quality. We're pleased with our slowing deposit betas which helped produce a nine basis point improvement in NIM during the quarter and a 10.69% ROAE. We also increased our tangible book value per share by $0.36 during the quarter. We are blessed to operate in some of the most vibrant markets in the country which are still producing quality opportunities for our commercial and mortgage bankers, additionally, our associates remain highly engaged in providing quality customer service across the markets we serve in North and South Carolina."

Financial Summary



Three Months Ended


Six Months Ended


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30


Jun 30


Jun 30

($ in thousands, except per share data)

2024

2024

2023

2023

2023


2024


2023

Earnings:










Net income available to common shareholders

$ 1,942

$ 1,238

$ 776

$ 1,444

$ 1,013


$ 3,180


$ 2,383

Earnings per common share, diluted

0.24

0.15

0.10

0.18

0.12


0.39


0.29

Total revenue(1)

10,226

9,690

8,285

9,219

8,959


19,916


18,389

Net interest margin

3.20 %

3.11 %

3.16 %

3.11 %

3.16 %


3.16 %


3.25 %

Return on average assets(2)

0.75 %

0.49 %

0.32 %

0.58 %

0.41 %


0.63 %


0.49 %

Return on average equity(2)

10.69 %

7.01 %

4.70 %

8.68 %

6.13 %


8.93 %


7.31 %

Efficiency ratio(3)

75.21 %

81.04 %

89.83 %

80.35 %

82.50 %


78.05 %


80.81 %


As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Balance Sheet:






Total assets

$ 1,058,395

$ 1,027,616

$ 974,157

$ 991,721

$ 992,596

Total loans receivable

739,433

725,234

705,672

706,596

694,130

Total deposits

899,799

881,309

858,597

861,229

830,085

Total transaction deposits(4) to total deposits

39.18 %

39.86 %

41.31 %

43.55 %

44.00 %

Loans to deposits

82.18 %

82.29 %

82.19 %

82.05 %

83.62 %

Bank Capital Ratios:






Total risk-based capital ratio

13.34 %

13.46 %

13.86 %

13.54 %

13.57 %

Tier 1 risk-based capital ratio

12.28 %

12.37 %

12.75 %

12.43 %

12.43 %

Tier 1 leverage ratio

10.01 %

10.16 %

10.32 %

10.11 %

9.95 %

Common equity tier 1 capital ratio

12.28 %

12.37 %

12.75 %

12.43 %

12.43 %

Asset Quality Ratios:






Nonperforming assets as a percentage of
total assets

0.03 %

0.03 %

0.03 %

0.05 %

0.05 %

Allowance for credit losses as a percentage of
total loans receivable

1.15 %

1.17 %

1.19 %

1.19 %

1.19 %

Net charge-offs as a percentage of average total loans receivable

0.05 %

0.06 %

0.00 %

0.01 %

0.07 %

Footnotes to table located at the end of this release.

CONDENSED CONSOLIDATED INCOME STATEMENTS - Unaudited



Three Months Ended

Six Months Ended


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Jun 30

($ in thousands, except per share data)

2024

2024

2023

2023

2023

2024

2023

Interest income








Loans

$ 10,746

$ 10,085

$ 9,678

$ 9,394

$ 8,837

$ 20,831

$ 17,097

Investment securities

1,875

1,972

1,832

1,596

1,371

3,847

2,714

Other interest income

419

291

396

536

782

710

1,144

Total interest income

13,040

12,348

11,906

11,526

10,990

25,388

20,955

Interest expense








Deposits

4,652

4,332

4,076

3,671

2,876

8,984

4,799

Other interest expense

722

808

558

651

893

1,530

1,661

Total interest expense

5,374

5,140

4,634

4,322

3,769

10,514

6,460

Net interest income

7,666

7,208

7,272

7,204

7,221

14,874

14,495

Provision for credit losses

55

207

(118)

(42)

280

262

528

Net interest income after provision for loan
losses

7,611

7,001

7,390

7,246

6,941

14,612

13,967

Noninterest income








Mortgage banking income

1,416

1,375

694

1,147

1,063

2,791

1,979

Service fees on deposit accounts

307

336

336

371

341

643

668

Debit card and other service charges,
commissions, and fees

568

519

544

537

563

1,087

1,080

Income from bank owned life insurance

103

102

99

95

91

205

335

Loss on sale of securities, net

-

-

(802)

(268)

(455)

-

(455)

Gain on disposal of fixed assets

-

20

11

-

-

20

19

Other income

166

130

132

132

134

296

267

Total noninterest income

2,560

2,482

1,014

2,014

1,737

5,042

3,893

Noninterest expense








Compensation and benefits

4,693

4,878

4,558

4,603

4,461

9,571

9,113

Occupancy and equipment

837

841

798

882

856

1,678

1,748

Data processing, technology, and communications

1,119

1,039

985

923

942

2,158

1,811

Professional fees

96

110

56

58

111

206

307

Marketing

102

160

104

151

206

262

432

Other

844

826

942

790

815

1,670

1,449

Total noninterest expense

7,691

7,854

7,443

7,407

7,391

15,545

14,860

Income before provision for income taxes

2,480

1,629

961

1,853

1,287

4,109

3,000

Income tax expense

538

391

185

409

274

929

617

Net income available to common shareholders

$ 1,942

$ 1,238

$ 776

$ 1,444

$ 1,013

$ 3,180

$ 2,383

Addback securities losses, net of tax

-

-

648

209

358

-

358

Adjusted net income (nonGAAP)

1,942

1,238

1,424

1,653

1,371

3,180

2,741

Weighted average common shares - basic

7,851

7,837

7,826

7,834

7,825

7,844

7,816

Weighted average common shares - diluted

8,260

8,217

8,164

8,149

8,142

8,273

8,173

Basic income per common share

$ 0.25

$ 0.16

$ 0.10

$ 0.18

$ 0.13

$ 0.41

$ 0.30

Diluted income per common share

$ 0.24

$ 0.15

$ 0.10

$ 0.18

$ 0.12

$ 0.39

$ 0.29

Adjusted basic net income per common share (nonGAAP)

$ 0.25

$ 0.16

$ 0.18

$ 0.21

$ 0.18

$ 0.41

$ 0.35

Adjusted diluted net income per common share (nonGAAP)

$ 0.24

$ 0.15

$ 0.17

$ 0.20

$ 0.17

$ 0.39

$ 0.34

Net income for the three months ended June 30, 2024, was $1.9 million, or $0.24 per diluted common share, compared to $1.0 million, or $0.12 per diluted common share, for the three months ended June 30, 2023. On an adjusted basis, second quarter of 2023 diluted EPS was $0.17, which includes adding back the impact of securities losses, after tax. Net income for the six months ended June 30, 2024, totaled $3.2 million, or $0.39 per diluted common share, compared to $2.4 million, or $0.29 per diluted common share. On an adjusted basis, diluted EPS was $0.34 per diluted common share, for the six months ended June 30, 2023, which includes adding back the impact of securities losses, after tax.

Noninterest income for the three months ended June 30, 2024, was $2.6 million, an increase of $0.9 million from $1.7 million for the same period in 2023. Noninterest income was primarily driven by mortgage banking income and totaled $1.4 million in the second quarter of 2024 compared to $1.1 million in the second quarter of 2023. This increase is the result of more sales volume from new producers hired in the last six months and a diversification of our third party originated (TPO) base. In the second quarter of 2023, the Company recognized a loss of $455 thousand on certain securities sold, and no such losses in 2024.

For the six months ended June 30, 2024, noninterest income increased by $1.2 million, driven by improved mortgage banking income of $812 thousand discussed above and no securities loss in 2024 compared to the $455 thousand loss recorded in 2023.

Noninterest expense for the three months ended June 30, 2024, was $7.7 million, an increase of $0.3 million from $7.4 million for the same period in 2023. This increase in expense was primarily driven by an increase in compensation and benefits of $232 thousand due primarily to mortgage commissions and employee medical benefits, and an increase in data processing and technology of $177 thousand related to core processing cost and other software maintenance. These increases in expense were partially offset by declines in professional fees expense and marketing expense.

Noninterest expense, for the six months ended June 30, 2024, was $15.5 million and increased $685 thousand over the same period one year ago. This increase in noninterest expense was primarily related to compensation and benefits of $458 thousand attributable to mortgage commissions and an increase in employee medical benefits, and an increase in data processing and technology totaling $347 thousand resulting from higher core processor cost and software expense. These increases were partially offset by lower professional fees and marketing cost.

NET INTEREST INCOME AND MARGIN - Unaudited - QTR



For the Three Months Ended


June 30, 2024


June 30, 2023


Average

Income/

Yield/


Average

Income/

Yield/

($ in thousands)

Balance

Expense

Rate


Balance

Expense

Rate

Assets








Interest-earning assets








Federal funds sold and interest-bearing deposits

$ 29,743

$ 379

5.13 %


$ 60,416

$ 750

4.98 %

Investment securities

168,826

1,875

4.47 %


160,245

1,371

3.43 %

Nonmarketable equity securities

2,037

40

7.82 %


2,186

31

5.75 %

Loans held for sale

24,965

446

7.19 %


16,864

295

7.00 %

Loans

736,944

10,300

5.62 %


677,668

8,543

5.06 %

Total interest-earning assets

962,515

13,040

5.45 %


917,379

10,990

4.81 %

Allowance for credit losses

(8,508)




(8,073)



Noninterest-earning assets

79,658




77,561



Total assets

$ 1,033,665




$ 986,867











Liabilities and Shareholders' Equity








Interest-bearing liabilities








NOW accounts

$ 140,821

$ 247

0.70 %


$ 138,167

$ 132

0.38 %

Savings & money market

366,431

2,712

2.98 %


314,091

1,860

2.37 %

Time deposits

179,539

1,694

3.79 %


139,501

884

2.54 %

Total interest-bearing deposits

686,792

4,652

2.72 %


591,759

2,876

1.95 %

FHLB advances and other borrowings

26,917

356

5.32 %


51,207

532

4.17 %

Subordinated debentures

25,737

366

5.72 %


25,703

361

5.62 %

Total interest-bearing liabilities

739,446

5,374

2.92 %


668,669

3,769

2.26 %

Noninterest bearing deposits

207,573




238,295



Other liabilities

13,971




13,802



Shareholders' equity

72,674




66,101



Total liabilities and shareholders' equity

$ 1,033,665




$ 986,867











Net interest income (tax equivalent) / interest
rate spread


$ 7,666

2.53 %



$ 7,221

2.54 %

Net Interest Margin



3.20 %




3.16 %









Cost of funds, including noninterest-bearing deposits



2.28 %




1.67 %

Net interest income for the three months ended June 30, 2024, was $7.7 million compared to $7.2 million for the three months ended June 30, 2023. This increase was the result of a larger increase in interest income of $2.050 million than the increase in interest expense of $1.605 million. This resulted in an improved net interest margin to 3.20% from 3.16% one year ago. All categories of interest-earning assets reflected higher yields as was the case for all categories of interest-bearing liabilities. In addition, the total cost of funds, including noninterest-bearing deposits, increased to 2.28% in the second quarter of 2024, compared to 1.67% in the second quarter of 2023.

NET INTEREST INCOME AND MARGIN - Unaudited - YTD



For the Six Months Ended


June 30, 2024


June 30, 2023


Average

Income/

Yield/


Average

Income/

Yield/

(dollars in thousands)

Balance

Expense

Rate


Balance

Expense

Rate

Assets








Interest-earning assets








Federal funds sold and interest-bearing deposits

$ 29,419

$ 645

4.40 %


$ 50,345

$ 1,100

4.41 %

Investment securities

169,084

3,846

4.56 %


161,627

2,714

3.39 %

Nonmarketable equity securities

2,093

65

6.21 %


2,100

44

4.27 %

Loans held for sale

20,025

700

7.01 %


13,289

450

6.83 %

Loans

723,620

20,131

5.58 %


673,229

16,647

4.99 %

Total interest-earning assets

944,241

25,388

5.39 %


900,590

20,955

4.69 %

Allowance for loan losses

(8,450)




(7,955)



Noninterest-earning assets

79,851




78,225



Total assets

$ 1,015,641




$ 970,860











Liabilities and Shareholders' Equity








Interest-bearing liabilities








NOW accounts

$ 142,005

$ 538

0.76 %


$ 139,746

$ 237

0.34 %

Savings & money market

352,219

5,156

2.94 %


308,178

3,277

2.14 %

Time deposits

176,923

3,290

3.73 %


124,811

1,284

2.07 %

Total interest-bearing deposits

671,147

8,984

2.68 %


572,735

4,798

1.69 %

FHLB advances and other borrowings

28,538

793

5.57 %


47,839

963

4.06 %

Subordinated debentures

25,731

737

5.75 %


25,699

699

5.48 %

Total interest-bearing liabilities

725,416

10,514

2.91 %


646,273

6,460

2.02 %

Noninterest bearing deposits

205,301




245,738



Other liabilities

13,694




13,658



Shareholders' equity

71,230




65,191



Total liabilities and shareholders' equity

$ 1,015,641




$ 970,860











Net interest income (tax equivalent) / interest
rate spread


$ 14,874

2.49 %



$ 14,495

2.68 %

Net Interest Margin



3.16 %




3.25 %









Cost of funds,including noninterest bearing deposits



2.27 %




1.46 %

Net interest income for the six months ended June 30, 2024, totaled $14.9 million compared to $14.5 million in the first six months of 2023, an increase of $0.4 million. The net interest margin was 3.16% for the first six months of 2024 compared to 3.25% for the same period in 2023. All of the yields on interest-earning assets, except fed funds sold and interest-bearing deposits, and interest-bearing liabilities have increased from the same period one year ago. The total cost of funds, including noninterest-bearing deposits was 2.27% compared to 1.46% in 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS - Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Assets






Cash and cash equivalents:






Cash and due from banks

$ 5,669

$ 5,482

$ 4,354

$ 3,158

$ 3,748

Interest-bearing deposits with banks

41,391

36,173

17,590

32,835

55,496

Total cash and cash equivalents

47,060

41,655

21,944

35,993

59,244

Investment securities:






Investment securities available for sale

173,298

171,075

171,400

162,573

158,143

Other investments

2,788

2,548

1,078

2,025

2,563

Total investment securities

176,087

173,623

172,478

164,598

160,706

Mortgage loans held for sale

25,776

18,307

7,156

17,506

12,485

Loans receivable:






Loans

739,433

725,234

705,672

706,596

694,130

Less allowance for credit losses

(8,498)

(8,497)

(8,393)

(8,430)

(8,229)

Loans receivable, net

730,935

716,737

697,279

698,166

685,901

Property and equipment, net

22,040

22,185

22,298

22,505

22,588

Mortgage servicing rights

12,680

12,226

11,638

11,394

10,893

Bank owned life insurance

18,396

18,293

18,191

18,092

17,997

Deferred income taxes

7,612

7,990

7,775

9,184

8,534

Other assets

17,809

16,600

15,398

14,283

14,248

Total assets

1,058,395

1,027,616

974,157

991,721

992,596

Liabilities






Deposits

$ 899,799

$ 881,309

$ 858,597

$ 861,229

$ 830,085

Federal Home Loan Bank advances

40,000

35,000

5,000

25,000

45,000

Federal funds and repurchase agreements

408

-

307

81

11,910

Subordinated debentures

15,428

15,421

15,413

15,405

15,397

Junior subordinated debentures

10,310

10,310

10,310

10,310

10,310

Reserve for unfunded commitments

364

398

407

488

740

Other liabilities

17,590

13,070

12,727

13,186

12,616

Total liabilities

983,899

955,508

902,761

925,699

926,058

Shareholders' equity






Preferred stock - Series D non-cumulative, no par
value

1

1

1

1

1

Common Stock - $.01 par value; 20,000,000 shares
authorized

88

88

88

88

88

Treasury stock, at cost

(5,216)

(4,965)

(4,821)

(4,750)

(4,666)

Nonvested restricted stock

(2,463)

(2,900)

(2,518)

(2,387)

(2,542)

Additional paid-in capital

55,645

56,134

55,471

55,068

54,972

Retained earnings

36,928

34,986

33,748

32,972

31,626

Accumulated other comprehensive (loss) income

(10,487)

(11,236)

(10,573)

(14,970)

(12,941)

Total shareholders' equity

74,496

72,108

71,396

66,022

66,538

Total liabilities and shareholders' equity

$ 1,058,395

$ 1,027,616

$ 974,157

$ 991,721

$ 992,596

First Reliance cash and cash equivalents totaled $47.1 million at June 30, 2024, compared to $41.7 million at March 31, 2024. Cash with the Federal Reserve Bank totaled $41.3 million compared to $36.2 million at March 31, 2024.

First Reliance does not have any Held-to-Maturity (HTM) securities for any reported period. All debt securities were classified as Available-For-Sale (AFS) securities with balances of $173.3 million and $171.1 million, at June 30, 2024 and March 31, 2024, respectively. The unrealized loss recorded on these securities totaled $13.9 million as of June 30, 2024, compared to $14.9 million at March 31, 2024, a decrease in the unrealized loss during the second quarter of $1.0 million (before taxes).

As of June 30, 2024, deposits increased by $18.5 million, or 8.4% annualized. The deposit growth was in money market accounts, time deposits less than $250,000 accounts, and noninterest bearing deposit accounts (see table on page 10 for detail).

The Company had $40.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at June 30, 2024, up from $35.0 million at March 31, 2024. The Company had remaining credit availability in excess of $257.7 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to approximately $34.7 million through the Federal Reserve Bank discount window with posted collateral. There are currently no borrowings against the Federal Reserve Bank discount window.

COMMON STOCK SUMMARY - Unaudited





As of




Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(shares in thousands)

2024

2024

2023

2023

2023

Voting common shares outstanding

8,819

8,785

8,772

8,754

8,752

Treasury shares outstanding

(743)

(649)

(633)

(623)

(612)

Total common shares outstanding

8,076

8,136

8,139

8,131

8,140







Book value per common share

$ 9.22

$ 8.86

$ 8.77

$ 8.12

$ 8.17

Tangible book value per common share(5)

$ 9.13

$ 8.77

$ 8.68

$ 8.02

$ 8.08







Stock price:






High

$ 8.30

$ 8.65

$ 9.00

$ 7.40

$ 8.80

Low

$ 7.60

$ 7.70

$ 6.91

$ 6.30

$ 6.00

Period end

$ 7.90

$ 8.15

$ 8.57

$ 7.20

$ 6.37

ASSET QUALITY MEASURES - Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Nonperforming Assets






Commercial






Owner occupied RE

$ 49

$ -

$ -

$ -

$ -

Non-owner occupied RE

-

-

86

86

82

Construction

62

-

-

-

-

Commercial business

12

12

99

164

159

Consumer






Real estate

46

48

-

-

-

Home equity

-

-

-

145

145

Construction

-

-

-

-

-

Other

66

52

8

14

94

Nonaccruing loan modifications

-

56

56

65

65

Total nonaccrual loans

$ 235

$ 168

$ 249

$ 474

$ 545

Other assets repossessed

75

114

47

45

-

Total nonperforming assets

$ 310

$ 282

$ 296

$ 519

$ 545

Nonperforming assets as a percentage of:






Total assets

0.03 %

0.03 %

0.03 %

0.05 %

0.05 %

Total loans receivable

0.04 %

0.04 %

0.04 %

0.07 %

0.08 %

Accruing loan modifications

$ 460

$ 970

$ 947

$ 1,027

$ 1,059








Three Months Ended


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Allowance for Credit Losses






Balance, beginning of period

$ 8,497

$ 8,393

$ 8,430

$ 8,229

$ 8,052

CECL adoption

-

-

-

-

-

Loans charged-off

102

195

108

41

145

Recoveries of loans previously charged-off

14

82

109

31

28

Net charge-offs (recoveries)

88

113

(1)

10

117

Provision for credit losses

89

217

(38)

211

294

Balance, end of period

$ 8,498

$ 8,497

$ 8,393

$ 8,430

$ 8,229

Allowance for credit losses to gross loans receivable

1.15 %

1.17 %

1.19 %

1.19 %

1.19 %

Allowance for credit losses to nonaccrual loans

3616.17 %

5057.74 %

3370.68 %

1778.48 %

1509.91 %

Asset quality remained consistent during the second quarter of 2024, with nonperforming assets remaining at $0.3 million, which represents 0.03% of total assets. The allowance for credit losses as a percentage of total loans receivable decreased to 1.15% at June 30, 2024, compared to 1.17% at March 31, 2024, and 1.19% at December 31, 2023. The allowance for credit losses was increased by a provision for credit losses of $89 thousand offset by net charge-offs of $88 thousand, during the second quarter of 2024. In the second quarter of 2023, the Company experienced net charge-offs of $117 thousand, and increased the ACL with a provision for credit losses of $294 thousand. The ACL was 1.19% of total loans at June 30, 2023.

Footnotes to table located at the end of this release.

LOAN COMPOSITION - Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Commercial real estate

$ 450,936

$ 434,743

$ 433,687

$ 430,825

$ 415,616

Consumer real estate

188,759

184,969

177,102

172,702

168,227

Commercial and industrial

76,149

77,023

63,946

67,740

71,345

Consumer and other

23,589

28,499

30,937

35,329

38,942

Total loans, net of deferred fees

739,433

725,234

705,672

706,596

694,130

Less allowance for credit losses

8,498

8,497

8,393

8,430

8,229

Total loans, net

$ 730,935

$ 716,737

$ 697,279

$ 698,166

$ 685,901

DEPOSIT COMPOSITION - Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2024

2024

2023

2023

2023

Noninterest-bearing

$ 220,330

$ 212,083

$ 210,604

$ 231,672

$ 230,153

Interest-bearing:






DDA and NOW accounts

132,186

139,229

144,039

143,393

135,071

Money market accounts

325,769

307,696

289,158

281,325

264,130

Savings

42,479

44,191

45,558

47,422

51,029

Time, less than $250,000

128,869

125,248

121,035

117,989

113,536

Time, $250,000 and over

50,166

52,862

48,203

39,428

36,166

Total deposits

$ 899,799

$ 881,309

$ 858,597

$ 861,229

$ 830,085

Footnotes to tables:



(1)

Total revenue is the sum of net interest income and noninterest income.

(2)

Annualized for the respective period.

(3)

Noninterest expense divided by the sum of net interest income and noninterest income.

(4)

Includes noninterest-bearing and interest-bearing DDA and NOW accounts.

(5)

The tangible book value per share is calculated as total shareholders' equity less intangible assets, divided by period-end outstanding common shares.

ABOUT FIRST RELIANCE

Founded in 1999, First Reliance Bancshares, Inc. (OTC: FSRL.OB), is based in Florence, South Carolina and has assets of approximately $1.058 billion. The Company employs approximately 170 professionals and has locations throughout South Carolina and central North Carolina. First Reliance has redefined community banking with a commitment to making customers' lives better, its founding principle. Customers of the Company have given it a 93% customer satisfaction rating, well above the bank industry average of 81%. First Reliance is also one of two companies throughout South Carolina to receive the Best Places to Work in South Carolina award all 17 years since the program began. We believe that this recognition confirms that our associates are engaged and committed to our brand and the communities we serve. The Company offers a full range of personalized community banking products and services for individuals, small businesses, and corporations. The Company also offers a full suite of digital banking services, Treasury Services, a Customer Service Guaranty, a Mortgage Service Guaranty, and First Reliance Wealth Strategies.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include, but are not limited to, statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for credit losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in the U.S. legal and regulatory framework including, but not limited to, the Dodd-Frank Act and regulations adopted thereunder; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the Company, including the value of its MSR asset; (7) the business related to acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; (8) the expected cost savings and any revenue synergies from acquisitions may not be fully realized within expected timeframes; and (9) disruption from acquisitions may make it more difficult to maintain relationships with clients, associates or suppliers. Moreover, a trade war or other governmental action related to tariffs or international trade agreements or policies, as well as Covid-19 or other potential epidemics or pandemics, have the potential to negatively impact ours and/or our customers' costs, demand for our customers' products, and/or the U.S. economy or certain sectors thereof and, thus, adversely affect our business, financial condition, and results of operations. All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact:
Robert Haile
SEVP & Chief Financial Officer
(843) 656-5000
[email protected]

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SOURCE First Reliance Bancshares, Inc.