First Reliance Bancshares, Inc. Announces Completion of Merger With Independence Bancshares, Inc.

FLORENCE, S.C., Jan. 23, 2018 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTC Pink:  FSRL) ("First Reliance") today announced that it completed the acquisition of Greenville, South Carolina-based Independence Bancshares, Inc. (OTCQB:  IEBS) ("Independence") effective January 23, 2018.  Independence's bank subsidiary, Independence National Bank, was merged with First Reliance's bank subsidiary, First Reliance Bank, with First Reliance Bank continuing as the surviving bank.  The full conversion of the Independence National Bank systems is expected to be completed by March 5, 2018.

The acquisition of Independence National Bank expands First Reliance's presence in the dynamic Greenville, South Carolina market and is an integral part of the bank's broader strategy to expand its footprint in top-tier markets throughout North and South Carolina.  The acquisition gives the existing First Reliance team in Greenville additional resources to expand its presence in the market, and provides further momentum in executing the bank's targeted expansion strategy.  First Reliance is a strong partner in all of the communities it serves, and is excited to expand its role in the Greenville community.

"This is a transaction about a true local community bank acquiring one of the finest banking franchises remaining in Greenville, South Carolina.  We are thrilled to welcome all the associates at Independence to the First Reliance team.  As we work through the integration, our commitment to our customers will remain the same -- to continue to deliver a superior community banking model of strong relationships and incredible service.  We are passionate about our mission to make the lives of our customers better and look forward to sharing our passion and values with the Greenville customers who value the loyal relationship they have with the Independence National Bank team," said Rick Saunders, President and CEO.

The closing of this transaction comes on the heels of several new significant developments for First Reliance over the past six months, including:  raising $25.1 million of additional capital in September 2017; Jack McElveen joining the bank in September 2017 as Chief Credit Officer; Kemper Kenan joining the bank as City Executive for Greenville, South Carolina in late 2017; David Barksdale joining the bank as President of North Carolina in early 2018; Ben Brazell being named as President of South Carolina in early 2018; and Ron Paige joining the bank as City Executive for Myrtle Beach, South Carolina in early 2018.

The combined Company is expected to have approximately $550 million in assets, $370 million in gross loans, $440 million in deposits, 11 banking offices in South Carolina, including a branch in Myrtle Beach, South Carolina expected to open in February 2018, and a loan production office in Winston Salem, North Carolina.

Hovde Group LLC, with lead banker Michael P. Corso, assisted First Reliance in its recent $25.1 million capital raise, as well as, the acquisition of Independence.

About First Reliance Bancshares, Inc.

First Reliance Bancshares, Inc. is the holding company for First Reliance Bank, a South Carolina-chartered bank.  The bank was founded in 1999, employs approximately 168 associates and serves the Columbia, Lexington, Charleston, Mount Pleasant, Summerville, Loris, North Myrtle Beach, and Florence markets in South Carolina and the Triad North Carolina market from its loan production office in Winston-Salem.  First Reliance Bank offers several unique customer programs which include a Hometown Heroes package of benefits for those who are serving our communities, Check 'N Save, a community outreach program for the unbanked or under-banked, a Moms First program, and an iMatter program targeted to young people. The bank also offers a Customer Service Guaranty, a Mortgage Service Guaranty, FREE Coin Machines for customers to use, Mobile Banking, Mobile mortgage applications, and is open on most traditional bank holidays.  Its commitment to making customers' lives better and the idea that "There's More to Banking Than Money" has earned the Bank a customer satisfaction rating of 95%.  The common stock of First Reliance Bancshares, Inc. is traded under the symbol FSRL.OB.  Additional information about the Company is available on the Company's web site at www.firstreliance.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements preceded by, followed by, or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. These statements are based upon the current belief and expectations of the Company's management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control).  Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company 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.  All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.  The Company does 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, except as required by law.

Member FDIC

For more information:
Jeffrey A. Paolucci
Executive Vice President and Chief Financial Officer
(843) 543-5510
[email protected]

SOURCE First Reliance Bancshares, Inc.