Subject: ERN
First Reliance Bancshares Reports First Quarter 2024 Results
FLORENCE, S.C., April 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 first quarter of 2024.
First Quarter 2024 Highlights
- Net income decreased 9.7% for the first quarter of 2024 to $1.2 million, or $0.15 per diluted share, compared to $1.4 million, or $0.17 per diluted share, for the first quarter of 2023.
- Net interest income for the quarter was $7.2 million, which represents a decrease of $64,800, or 0.9%, on a linked quarter basis and a decrease of $66,600, or 0.9% compared to the same period in 2023.
- Net interest margin decreased during the quarter to 3.11% at March 31, 2024, compared to 3.16% for the fourth quarter of 2023, and decreased 23 basis points compared to the same period in 2023.
- Total loans increased $19.6 million, or 11.1% annualized, to $725.2 million at March 31, 2024, from $705.7 million at December 31, 2023.
- Total deposits increased $22.7 million, or 10.6% annualized, to $881.3 million at March 31, 2024, from $858.6 million at December 31, 2023.
- Asset quality remained strong with nonperforming assets as a percentage of total assets of 0.03% at March 31, 2024, down from 0.04% at December 31, 2023. The Company had net charge-offs of $113.0 thousand, or annualized 0.06% of average loans, during the first quarter of 2024, compared to net recoveries of $1.3 thousand, or annualized 0.00% of average loans, for the fourth quarter of 2023.
- Cost of funds for the first quarter of 2024 increased to 2.25% from 2.03% on a linked quarter basis and from 1.24% for the same period in 2023.
- Book value per share increased $0.72 from $8.14 per share at March 31, 2023, to $8.86 per share at March 31, 2024.
Rick Saunders, Chief Executive Officer, stated: "The first quarter of 2024 saw our total assets exceed $1.0 billion, which we expect to continue to grow going forward. Loan growth exceeded 11% annualized while deposit growth was 10.6% annualized. The Company's capital ratios remain strong as our total capital ratio equaled 13.46% at the bank level. In addition, tangible book value per share increased by $0.73 per share, or 9.08%, to $8.77 over the past twelve months. Credit quality remains strong with low net charge offs and nonperforming assets. Our team continues to put clients first while establishing strong long-term relationships in the communities we serve."
Financial Summary | |||||
Three Months Ended | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands, except per share data) | 2024 | 2023 | 2023 | 2023 | 2023 |
Earnings: | |||||
Net income available to common shareholders | $ 1,238 | $ 776 | $ 1,444 | $ 1,013 | $ 1,371 |
Earnings per common share, diluted | 0.15 | 0.10 | 0.18 | 0.12 | 0.17 |
Total revenue(1) | 9,690 | 8,285 | 9,219 | 8,959 | 9,430 |
Net interest margin | 3.11 % | 3.16 % | 3.11 % | 3.16 % | 3.34 % |
Return on average assets(2) | 0.49 % | 0.32 % | 0.58 % | 0.41 % | 0.57 % |
Return on average equity(2) | 7.01 % | 4.70 % | 8.68 % | 6.13 % | 8.53 % |
Efficiency ratio(3) | 81.04 % | 89.83 % | 80.35 % | 82.50 % | 79.20 % |
As of | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Balance Sheet: | |||||
Total assets | $ 1,027,616 | $ 974,157 | $ 991,721 | $ 992,596 | $ 1,000,535 |
Total loans receivable | 725,234 | 705,672 | 706,596 | 694,130 | 669,969 |
Total deposits | 881,309 | 858,597 | 861,229 | 830,085 | 836,902 |
Total transaction deposits(4) to total deposits | 39.86 % | 41.31 % | 43.55 % | 44.00 % | 46.46 % |
Loans to deposits | 82.29 % | 82.19 % | 82.05 % | 83.62 % | 80.05 % |
Bank Capital Ratios: | |||||
Total risk-based capital ratio | 13.46 % | 13.86 % | 13.54 % | 13.57 % | 13.45 % |
Tier 1 risk-based capital ratio | 12.37 % | 12.75 % | 12.43 % | 12.43 % | 12.41 % |
Tier 1 leverage ratio | 10.16 % | 10.32 % | 10.11 % | 9.95 % | 10.14 % |
Common equity tier 1 capital ratio | 12.37 % | 12.75 % | 12.43 % | 12.43 % | 12.41 % |
Asset Quality Ratios: | |||||
Nonperforming assets as a percentage of | 0.03 % | 0.03 % | 0.05 % | 0.05 % | 0.05 % |
Allowance for credit losses as a percentage of | 1.17 % | 1.19 % | 1.19 % | 1.19 % | 1.20 % |
Net charge-offs as a percentage of average total | 0.06 % | 0.00 % | 0.01 % | 0.07 % | 0.06 % |
Footnotes to table located at the end of this release. | |||||
CONDENSED CONSOLIDATED INCOME STATEMENTS ? Unaudited | |||||
Three Months Ended | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands, except per share data) | 2024 | 2023 | 2023 | 2023 | 2023 |
Interest income | |||||
Loans | $ 10,085 | $ 9,678 | $ 9,394 | $ 8,837 | $ 8,260 |
Investment securities | 1,972 | 1,832 | 1,596 | 1,371 | 1,343 |
Other interest income | 291 | 396 | 536 | 782 | 362 |
Total interest income | 12,348 | 11,906 | 11,526 | 10,990 | 9,965 |
Interest expense | |||||
Deposits | 4,332 | 4,076 | 3,671 | 2,876 | 1,922 |
Other interest expense | 808 | 558 | 651 | 893 | 769 |
Total interest expense | 5,140 | 4,634 | 4,322 | 3,769 | 2,691 |
Net interest income | 7,208 | 7,272 | 7,204 | 7,221 | 7,274 |
Provision for credit losses | 207 | (118) | (42) | 280 | 248 |
Net interest income after provision for loan | 7,001 | 7,390 | 7,246 | 6,941 | 7,026 |
Noninterest income | |||||
Mortgage banking income | 1,375 | 694 | 1,147 | 1,063 | 916 |
Service fees on deposit accounts | 336 | 336 | 371 | 341 | 326 |
Debit card and other service charges, | 519 | 544 | 537 | 563 | 517 |
Income from bank owned life insurance | 102 | 99 | 95 | 91 | 244 |
Loss on sale of securities, net | - | (802) | (268) | (455) | - |
Gain on disposal of fixed assets | 20 | 11 | - | - | 19 |
Other income | 130 | 132 | 132 | 134 | 134 |
Total noninterest income | 2,482 | 1,014 | 2,014 | 1,737 | 2,156 |
Noninterest expense | |||||
Compensation and benefits | 4,878 | 4,558 | 4,603 | 4,461 | 4,652 |
Occupancy and equipment | 841 | 798 | 882 | 856 | 892 |
Data processing, technology, and communications | 1,039 | 985 | 923 | 942 | 771 |
Professional fees | 110 | 56 | 58 | 111 | 196 |
Marketing | 160 | 104 | 151 | 206 | 226 |
Other | 826 | 942 | 790 | 815 | 732 |
Total noninterest expense | 7,854 | 7,443 | 7,407 | 7,391 | 7,469 |
Income before provision for income taxes | 1,629 | 961 | 1,853 | 1,287 | 1,713 |
Income tax expense | 391 | 185 | 409 | 274 | 342 |
Net income available to common shareholders | $ 1,238 | $ 776 | $ 1,444 | $ 1,013 | $ 1,371 |
Addback securities losses, net of tax | - | 648 | 355 | 211 | - |
Adjusted net income (nonGAAP) | 1,238 | 1,424 | 1,799 | 1,224 | 1,371 |
Weighted average common shares - basic | 7,837 | 7,826 | 7,834 | 7,825 | 7,807 |
Weighted average common shares - diluted | 8,217 | 8,164 | 8,149 | 8,142 | 8,189 |
Basic income per common share | $ 0.16 | $ 0.10 | $ 0.18 | $ 0.13 | $ 0.18 |
Diluted income per common share | $ 0.15 | $ 0.10 | $ 0.18 | $ 0.12 | $ 0.17 |
Adjusted basic net income per common share (nonGAAP) | $ 0.16 | $ 0.18 | $ 0.23 | $ 0.16 | $ 0.18 |
Adjusted diluted net income per common share (nonGAAP) | $ 0.15 | $ 0.17 | $ 0.22 | $ 0.15 | $ 0.17 |
Net income for the three months ended March 31, 2024, was $1.2 million, or $0.15 per diluted common share, compared to $1.4 million, or $0.17 per diluted common share, for the three months ended March 31, 2023.
Noninterest income for the three months ended March 31, 2024, was $2.5 million, an increase of $0.3 million from $2.2 million for the same period in 2023. Noninterest income was primarily driven by the Company's mortgage banking division, which produced net revenue of $1.4 million during the three months ended March 31, 2024, compared to $0.9 million for the same period in 2023. The increase in mortgage noninterest income is primarily due to higher sales volume compared to the first quarter of 2023. Additionally, the Bank's mortgage servicing right asset increased due to increases in mortgage rates the first quarter of 2024. Income from bank owned life insurance decreased $142 thousand compared to the first quarter of 2023 due to the receipt of a death benefit during the first quarter of 2023.
Noninterest expense for the three months ended March 31, 2024, was $7.9 million, an increase of $0.4 million from $7.5 million for the same period in 2023. This was primarily driven by an increase in compensation and benefits of $225.4 thousand due primarily to mortgage commissions and an increase in data processing and technology of $268.0 thousand. These increases were offset by declines in occupancy, professional fees, and marketing of $203.0 thousand, collectively, compared to first quarter 2023.
NET INTEREST INCOME AND MARGIN ? Unaudited | |||||||
For the Three Months Ended | |||||||
March 31, 2024 | March 31, 2023 | ||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||
($ in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |
Assets | |||||||
Interest-earning assets | |||||||
Federal funds sold and interest-bearing deposits | $ 27,557 | $ 266 | 3.88 % | $ 40,162 | $ 349 | 3.53 % | |
Investment securities | 169,174 | 1,972 | 4.69 % | 163,024 | 1,343 | 3.34 % | |
Nonmarketable equity securities | 2,224 | 25 | 4.56 % | 2,013 | 13 | 2.65 % | |
Loans held for sale | 15,639 | 254 | 6.53 % | 9,675 | 155 | 6.51 % | |
Loans | 716,237 | 9,831 | 5.52 % | 668,741 | 8,105 | 4.91 % | |
Total interest-earning assets | 930,831 | 12,348 | 5.34 % | 883,615 | 9,965 | 4.57 % | |
Allowance for credit losses | (8,401) | (7,837) | |||||
Noninterest-earning assets | 79,678 | 78,697 | |||||
Total assets | $ 1,002,108 | $ 954,475 | |||||
Liabilities and Shareholders' Equity | |||||||
Interest-bearing liabilities | |||||||
NOW accounts | $ 142,303 | $ 291 | 0.82 % | $ 141,342 | $ 105 | 0.30 % | |
Savings & money market | 341,680 | 2,445 | 2.88 % | 302,198 | 1,417 | 1.90 % | |
Time deposits | 174,169 | 1,596 | 3.69 % | 109,959 | 400 | 1.47 % | |
Total interest-bearing deposits | 658,152 | 4,332 | 2.65 % | 553,499 | 1,922 | 1.41 % | |
FHLB advances and other borrowings | 31,665 | 437 | 5.55 % | 44,435 | 430 | 3.93 % | |
Subordinated debentures | 25,727 | 371 | 5.81 % | 25,695 | 339 | 5.34 % | |
Total interest-bearing liabilities | 715,544 | 5,140 | 2.89 % | 623,629 | 2,691 | 1.75 % | |
Noninterest bearing deposits | 202,136 | 253,263 | |||||
Other liabilities | 13,768 | 13,313 | |||||
Shareholders' equity | 70,660 | 64,270 | |||||
Total liabilities and shareholders' equity | $ 1,002,108 | $ 954,475 | |||||
Net interest income (tax equivalent) / interest | $ 7,208 | 2.45 % | $ 7,274 | 2.82 % | |||
Net Interest Margin | 3.11 % | 3.34 % | |||||
Cost of funds, including noninterest-bearing deposits | 2.25 % | 1.24 % | |||||
Net interest income for the three months ended March 31, 2024, was $7.2 million compared to $7.3 million for the three months ended March 31, 2023. This slight decrease was the result of deposit cost increasing by $2.4 million offset by interest income increasing by $2.4 million, resulting in $67 thousand net decrease. Yield on interest-earning assets increased to 5.34% for the three months ended March 31, 2024, from 4.57% for the same period in 2023. Yield on interest-bearing liabilities increased to 2.89% in the first quarter of 2024, up from 1.75% in the first quarter of 2023.
CONDENSED CONSOLIDATED BALANCE SHEETS ? Unaudited | |||||
As of | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Assets | |||||
Cash and cash equivalents: | |||||
Cash and due from banks | $ 5,482 | $ 4,354 | $ 3,158 | $ 3,748 | $ 4,233 |
Interest-bearing deposits with banks | 36,173 | 17,590 | 32,835 | 55,496 | 71,590 |
Total cash and cash equivalents | 41,655 | 21,944 | 35,993 | 59,244 | 75,823 |
Investment securities: | |||||
Investment securities available for sale | 171,075 | 171,400 | 162,573 | 158,143 | 164,150 |
Other investments | 2,548 | 1,078 | 2,025 | 2,563 | 2,570 |
Total investment securities | 173,623 | 172,478 | 164,598 | 160,706 | 166,720 |
Mortgage loans held for sale | 18,307 | 7,156 | 17,506 | 12,485 | 16,236 |
Loans receivable: | |||||
Loans | 725,234 | 705,672 | 706,596 | 694,130 | 669,969 |
Less allowance for credit losses | (8,497) | (8,393) | (8,430) | (8,229) | (8,052) |
Loans receivable, net | 716,737 | 697,279 | 698,166 | 685,901 | 661,917 |
Property and equipment, net | 22,185 | 22,298 | 22,505 | 22,588 | 22,634 |
Mortgage servicing rights | 12,226 | 11,638 | 11,394 | 10,893 | 10,491 |
Bank owned life insurance | 18,293 | 18,191 | 18,092 | 17,997 | 17,906 |
Deferred income taxes | 7,990 | 7,775 | 9,184 | 8,534 | 8,263 |
Other assets | 16,600 | 15,398 | 14,283 | 14,248 | 20,545 |
Total assets | 1,027,616 | 974,157 | 991,721 | 992,596 | 1,000,535 |
Liabilities | |||||
Deposits | $ 881,309 | $ 858,597 | $ 861,229 | $ 830,085 | $ 836,902 |
Federal Home Loan Bank advances | 35,000 | 5,000 | 25,000 | 45,000 | 45,000 |
Federal funds and repurchase agreements | - | 307 | 81 | 11,910 | 12,974 |
Subordinated debentures | 15,421 | 15,413 | 15,405 | 15,397 | 15,389 |
Junior subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 |
Reserve for unfunded commitments | 398 | 407 | 488 | 740 | 754 |
Other liabilities | 13,070 | 12,727 | 13,186 | 12,616 | 12,743 |
Total liabilities | 955,508 | 902,761 | 925,699 | 926,058 | 934,072 |
Shareholders' equity | |||||
Preferred stock - Series D non-cumulative, no par | 1 | 1 | 1 | 1 | 1 |
Common Stock - $.01 par value; 20,000,000 shares | 88 | 88 | 88 | 88 | 88 |
Treasury stock, at cost | (4,965) | (4,821) | (4,750) | (4,666) | (4,598) |
Nonvested restricted stock | (2,900) | (2,518) | (2,387) | (2,542) | (2,765) |
Additional paid-in capital | 56,134 | 55,471 | 55,068 | 54,972 | 54,984 |
Retained earnings | 34,986 | 33,748 | 32,972 | 31,626 | 30,564 |
Accumulated other comprehensive (loss) income | (11,236) | (10,573) | (14,970) | (12,941) | (11,811) |
Total shareholders' equity | 72,108 | 71,396 | 66,022 | 66,538 | 66,463 |
Total liabilities and shareholders' equity | $ 1,027,616 | $ 974,157 | $ 991,721 | $ 992,596 | $ 1,000,535 |
First Reliance cash and cash equivalents totaled $41.7 million at March 31, 2024, compared to $21.9 million at December 31, 2023. Cash with the Federal Reserve Bank totaled $36.0 million compared to $17.1 million at December 31, 2023.
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 $171.1 million and $171.4 million, at March 31, 2024 and December 31, 2023, respectively. The unrealized loss recorded on these securities totaled $14.9 million as of March 31, 2024, compared to $14.0 million at December 31, 2023, an increase in the first quarter of $0.9 million unrealized loss (before taxes).
As of March 31, 2024, deposits increased by $22.7 million or 10.6% 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 8 for detail).
The Company had $35.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at March 31, 2024, up from $5.0 million at December 31, 2023. The Company had remaining credit availability in excess of $236.5 million with the FHLB of Atlanta, subject to collateral requirements.
First Reliance also has access to more than $35.1 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 | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
(shares in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Voting common shares outstanding | 8,785 | 8,772 | 8,754 | 8,752 | 8,763 |
Treasury shares outstanding | (649) | (633) | (623) | (612) | (601) |
Total common shares outstanding | 8,136 | 8,139 | 8,131 | 8,140 | 8,162 |
Book value per common share | $ 8.86 | $ 8.77 | $ 8.12 | $ 8.17 | $ 8.14 |
Tangible book value per common share(5) | $ 8.77 | $ 8.68 | $ 8.02 | $ 8.08 | $ 8.04 |
Stock price: | |||||
High | $ 8.65 | $ 9.00 | $ 7.40 | $ 8.80 | $ 8.80 |
Low | $ 7.70 | $ 6.91 | $ 6.30 | $ 6.00 | $ 6.50 |
Period end | $ 8.15 | $ 8.57 | $ 7.20 | $ 6.37 | $ 7.44 |
ASSET QUALITY MEASURES ? Unaudited | |||||
As of | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Nonperforming Assets | |||||
Commercial | |||||
Owner occupied RE | $ - | $ - | $ - | $ - | $ 80 |
Non-owner occupied RE | - | 86 | 86 | 82 | - |
Construction | - | - | - | - | - |
Commercial business | 12 | 99 | 164 | 159 | 278 |
Consumer | |||||
Real estate | 48 | - | - | - | - |
Home equity | - | - | 145 | 145 | - |
Construction | - | - | - | - | - |
Other | 52 | 8 | 14 | 94 | 65 |
Nonaccruing loan modifications | 56 | 56 | 65 | 65 | 71 |
Total nonaccrual loans | $ 168 | $ 249 | $ 474 | $ 545 | $ 494 |
Other assets repossessed | 114 | 47 | 45 | - | - |
Total nonperforming assets | $ 282 | $ 296 | $ 519 | $ 545 | $ 494 |
Nonperforming assets as a percentage of: | |||||
Total assets | 0.03 % | 0.03 % | 0.05 % | 0.05 % | 0.05 % |
Total loans receivable | 0.04 % | 0.04 % | 0.07 % | 0.08 % | 0.07 % |
Accruing loan modifications | $ 970 | $ 947 | $ 1,027 | $ 1,059 | $ 1,381 |
Three Months Ended | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Allowance for Credit Losses | |||||
Balance, beginning of period | $ 8,393 | $ 8,430 | $ 8,229 | $ 8,052 | $ 7,660 |
CECL adoption | - | - | - | - | 114 |
Loans charged-off | 195 | 108 | 41 | 145 | 125 |
Recoveries of loans previously charged-off | 82 | 109 | 31 | 28 | 23 |
Net charge-offs (recoveries) | 113 | (1) | 10 | 117 | 102 |
Provision for credit losses | 217 | (38) | 211 | 294 | 380 |
Balance, end of period | $ 8,497 | $ 8,393 | $ 8,430 | $ 8,229 | $ 8,052 |
Allowance for credit losses to gross loans receivable | 1.17 % | 1.19 % | 1.19 % | 1.19 % | 1.20 % |
Allowance for credit losses to nonaccrual loans | 5057.74 % | 3370.68 % | 1778.48 % | 1509.91 % | 1629.96 % |
Footnotes to table located at the end of this release. | |||||
Asset quality remained strong through March 31, 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 1.17% at March 31, 2024, compared to 1.19% at December 31, 2023. The allowance for credit losses was increased by a provision for credit losses of $217 thousand offset by net charge-offs of $113 thousand, during the first quarter of 2024. In the first quarter of 2023, the Company experienced net charge-offs of $102 thousand, and increased the ACL with a provision for credit losses of $380 thousand. The ACL was 1.20% of total loans at March 31, 2023.
LOAN COMPOSITION ? Unaudited | |||||
As of | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Commercial real estate | $ 434,743 | $ 433,687 | $ 430,825 | $ 415,616 | $ 401,534 |
Consumer real estate | 184,969 | 177,102 | 172,702 | 168,227 | 156,562 |
Commercial and industrial | 77,023 | 63,946 | 67,740 | 71,345 | 71,350 |
Consumer and other | 28,499 | 30,937 | 35,329 | 38,942 | 40,523 |
Total loans, net of deferred fees | 725,234 | 705,672 | 706,596 | 694,130 | 669,969 |
Less allowance for credit losses | 8,497 | 8,393 | 8,430 | 8,229 | 8,052 |
Total loans, net | $ 716,737 | $ 697,279 | $ 698,166 | $ 685,901 | $ 661,917 |
DEPOSIT COMPOSITION ? Unaudited | |||||
As of | |||||
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |
($ in thousands) | 2024 | 2023 | 2023 | 2023 | 2023 |
Noninterest-bearing | $ 212,083 | $ 210,604 | $ 231,672 | $ 230,153 | $ 249,688 |
Interest-bearing: | |||||
DDA and NOW accounts | 139,229 | 144,039 | 143,393 | 135,071 | 139,130 |
Money market accounts | 307,696 | 289,158 | 281,325 | 264,130 | 265,264 |
Savings | 44,191 | 45,558 | 47,422 | 51,029 | 54,247 |
Time, less than $250,000 | 125,248 | 121,035 | 117,989 | 113,536 | 97,223 |
Time, $250,000 and over | 52,862 | 48,203 | 39,428 | 36,166 | 31,350 |
Total deposits | $ 881,309 | $ 858,597 | $ 861,229 | $ 830,085 | $ 836,902 |
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 $1.028 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]
SOURCE First Reliance Bancshares, Inc.
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