By BEN WERNER Staff Writer The State News bwerner@thestate.com
FLORENCE – Florence-based First Reliance Bank isn’t quite 5 years old yet, but it is already embarking on an aggressive statewide growth strategy.
The bank’s first Columbia-area branch is slated to open in Lexington in early May. More are to follow each year. And in the last week of March the bank started listing its stock on the Over the Counter Board- a first step to becoming listed on the exchange.
Jeff Paolucci, chief financial officer of First Reliance Bank, recently answered some questions about the direction of First Reliance and its move to list its stock.
Question: Why list First Reliance’s stock?
Answer: We have more than 2000 shareholders now, and with that we believe the shareholders need improved and quicker access to information. Before, if an investor wanted to sell their stock they had to call the bank, and the bank would find a buyer. Plus, with a growing shareholder base we also have an even faster-growing pool of potential buyers.
Question: How does listing fit in with First Reliance’s growth strategy?
Answer: We’re not raising capital at this time through the over-the-counter trading. This is a preliminary step toward eventually being listed on an exchange. We have out eyes set on NASDAQ. OTCB trading increases the number of potential investors, because anyone with access to a computer now can find out about the bank.
Question: Why is it important for the bank to go in this direction?
Answer: We would love to bank across the state and have shareholders across the state. The increased trading activity gives us exposure to other markets outside Florence while fulfilling and improving our shareholder needs.
Question: Explain the significance of increased exposure to First Reliance’s growth strategy?
Answer: Anytime you get more people interested, your stock it increases the stock’s exposure. In turn, as more people learn about the stock they learn more about the bank. We’re a publicly held company, but were a privately traded company. This moves puts us in the public eye and strengthens the bank from a reputation standpoint and it promotes the tradability of the stock. Listing, though, is just one of many growth strategies.
FIRST RELIANCE BANCSHARES INC. Headquarters: Florence, S.C. Symbol: FSRL S.C. Operations: Two branches in Florence, with plans to open in Lexington this year. Employees: 72 Net Income: $1.02 million in ’03, up from $894,000 in ‘02 Stock: Issued 1 million shares at $8 a share during ‘02 Closing Price: Stock closed Thursday at $11.25 a share, down 55 cents on a volume of 900 shares.
For more information: Van Rowell Marketing First Reliance Bank 2170 W. Palmetto St. Florence, SC 29501 843-674-3264 vrowell@firstreliance.com