In the news release, issued yesterday, April 17, by First Reliance Bancshares, Inc. (OTC Bulletin Board: FSRL) over PR Newswire, we are advised by the company that the headline should read “First Reliance Announces 1st Quarter Net Income of $573,703 – Up 33%” rather than “$573,703 Million” as originally issued inadvertently. Complete, corrected release follows:
First Reliance Announces 1st Quarter Net Income of $573,703 – Up 33%
FLORENCE, S.C., April 17 /PRNewswire-FirstCall/ — First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, reported unaudited pre-tax income for the quarter ended March 31, 2006 of $811,554, an increase of $253,046, or 31%, over the $558,508 reported for the quarter ended March 31, 2005. Unaudited net income increased 33%, to $573,703 as compared to $385,599 reported in the prior-year period. Earnings benefited from strong growth in both net interest income and non- interest income. Specifically, net interest income increased 24% to $4,008,669 for the quarter ended March 31, 2006, while non-interest income increased by 41% to $938,455. Basic earnings per share were $0.17, an increase of $0.05, or 29%, from $0.12 reported in the prior-year period. The earnings per share for the quarter ended March 31, 2006 is based on average shares of 3,344,344 compared to 3,221,902 shares reported in the prior-year period.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO)
At March 31, 2006, total assets were $420 million, an increase of $87 million, or 21% over the $333 million reported for March 31, 2005. Loans increased $50 million, or 16% to $323 million, funded primarily by growth in deposits. Deposits increased to $355 million, up 26% from $261 million reported the prior year period.
Rick Saunders, President and Chief Executive Officer, commented, “Continuing to focus on our Easy-To-Do-Business-With(TM) promise to our customers will remain a primary focus throughout 2006. The beginning of 2006 met with our newest service initiative that promises our customers: Any ATM, Anywhere, NO Fees. We believe this is an extremely complementary addition to our suite of customer focus services. Our recent groundbreaking in Lexington, SC on a $3 million regional office project also supports our commitment to world class service and innovation through design. Delivering on our vision for the future, we were pleased to announce our plans to build a 75,000- square-foot corporate center in Florence, S.C. over the next 2-5 years. The 5 to 7 story building will be situated on 7 acres of land and will include a training facility and child development center for our employees. The site we have acquired has frontage to I-20 spur and is located just two miles east of the I-95/I-20 intersection the fastest growing economic development corridor in SC for 2005.”
“Our commitment best-in-class customer service has rewarded us with a vote of confidence from our customers in the form of a 95% customer satisfaction rating. (Performance Solutions, February 2006.) I am confident that these positive trends will provide us with the foundation and momentum needed for another successful year.”
Jeff Paolucci, Senior Vice President and Chief Financial Officer, commented on the quarterly performance results by saying, “The first quarter of 2006 was an outstanding quarter, as the positive results of 2005 continued into the first quarter of 2006. Expansion into Charleston and Mt. Pleasant has proven to be successful as Low Cost/No Cost deposits grew 32% or $16.4 million over the prior year period. Total deposits increased 26% over the prior year period, due to the success of our Easy-To-Do-Business-With(TM) and There’s More to Banking Than Money(TM) standards which offer our customers 8-8 extended banking hours, Totally Free Checking, Totally Free Business, free coin machines, $500 Service Promises, and a No Fee ATM Network. The first quarter of 2006 saw an increase of 22% in account acquisition with 7,171 demand deposit accounts on March 31, 2006, due largely to our Totally Free Checking Program. The company is well-positioned to take advantage of any economic expansion opportunities that this period may provide.”
The Company’s one bank subsidiary, First Reliance, has been recognized for its success including being the only bank ever to be named to The Top 25 Fastest Growing Companies(TM) in South Carolina three times including 2005 (ElliottDavis.) First Reliance Bank operates in five locations with Totally Free Checking, Totally Free Business, free coin machines, $500 Service Promises and 8-8 Extended Hours in their Florence location.
Based in Florence, South Carolina, First Reliance Bancshares, Inc., is a bank holding company with approximately $403.1 million in assets as of December 31, 2005. First Reliance Bank, which was opened in 1999, is the Company’s sole operating subsidiary. The bank, which serves as one of the only locally owned and operated banks in the Florence area, maintains two branch locations and a Technology Center in Florence, SC. In addition, the bank’s aggressive planned growth strategy resulted in expansion into the Columbia, SC market where they opened a Lexington regional facility in 2004. In March of 2005, the Charleston regional office was opened in historic downtown Charleston, SC. Their newest facility, opened in the 3rd quarter of 2005, will serve the Mt. Pleasant, SC community. During the fourth quarter, the bank acquired its third Charleston branch site located at 2031 Sam Rittenberg Blvd. Charleston, SC, with plans to open this location in 2006. Additional branch expansions over the next 24 months include new sites located in North Charleston, the Midlands Region, and the Upstate Region. The Company’s stock is traded on the OTC Bulletin Board under the symbol “FSRL”. Information about the Company is available on our website at www.firstreliance.com.
This press release contains forward-looking statements about branch openings within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events.
Any or all of our forward-looking statements here or in other publications may turn out to be incorrect. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward- looking statements can be guaranteed. Our actual results may vary materially, and there are no guarantees about the performance of our stock.
We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future results or otherwise. You are advised, however, to consult any future disclosures we make on related subjects in our reports to the SEC.
Contact Jeffrey A. Paolucci, Senior Vice President and Chief Financial
Officer, (843) 674-3250
First Reliance Bancshares, Inc.
Consolidated Reports of Income
Three Months Three Months
Ended Ended
Mar 31,2006 Mar 31,2005
(Unaudited) (Unaudited)
Interest Income
Loans and Fees 6,397,688 4,305,702
Investment Securities
Taxable 270,349 182,285
Tax exempt 152,401 125,971
Federal funds sold 177,871 5,329
Other interest income 26,018 13,683
Total 7,024,327 4,632,970
Interest Expense
Time deposits $100,000 and over 1,060,179 688,700
Other deposits 1,544,759 649,125
Other interest expense 410,720 254,637
Total 3,015,658 1,592,462
Net Interest Income 4,008,669 3,040,508
Provision for loan losses (250,285) (172,552)
Net Interest Income after provision 3,758,384 2,867,956
Non-interest Income
Service charges on deposit accounts 364,379 328,605
Gain on sale of mortgage loans 358,450 105,497
Brokerage fees 31,465 31,002
Credit life insurance commissions 6,429 7,661
Other charges, commissions and fees 59,766 46,797
Gain/ Loss on sale of securities
available for sale - -
Gain/ Loss on sale of Other Real Estate - (30,025)
Gain/ Loss on sale of Fixed Assets (14) (287)
Other 117,980 68,983
Total 938,455 558,233
Non-interest Expense
Salaries and benefits 2,240,635 1,706,080
Occupancy 288,986 158,395
Furniture and equipment related 162,578 174,218
Other operating 1,193,086 828,988
Total 3,885,285 2,867,681
Income before tax 811,554 558,508
Income tax expense 237,851 172,909
Net Income 573,703 385,599
Basic earnings per share 0.17 0.12
Diluted earnings per share 0.16 0.11
First Reliance Bancshares, Inc.
Balance Sheet
March 31 March 31 December 31
2006 2005 2005
(Unaudited) (Unaudited) (Audited)
Assets:
Cash and Cash Equivalents
Cash and Due From Banks 9,208,595 5,972,453 7,264,897
Federal funds sold 15,250,000 7,595,000 22,442,000
Total cash and cash
equivalents 24,458,595 13,567,453 29,706,897
Investment securities
Securities available
for sale 37,356,234 28,142,501 37,121,479
Non-marketable equity
securities 1,956,350 2,469,600 1,745,850
Investment in trust 310,000 - 310,000
Total investment
securities 39,622,584 30,612,101 39,177,329
Loans held for sale 7,760,509 1,331,952 7,994,603
Loans receivable 326,997,202 275,681,928 311,544,385
Less allowance for loan
losses (3,594,008) (2,954,120) (3,419,368)
Loans, net 323,403,194 272,727,808 308,125,017
Premises, furniture, and
equipment, net 10,644,038 7,159,172 10,020,537
Accrued interest receivable 1,984,566 1,500,645 2,189,742
Other real estate owned 1,518,896 342,509 345,550
Cash surrender value life
insurance 8,644,788 3,451,582 3,752,165
Other assets 2,033,965 1,877,637 1,726,044
Total Assets 420,071,135 332,570,859 403,037,884
Liabilities:
Deposits:
Non-interest bearing
transaction accounts 43,331,022 31,877,012 39,222,574
Interest bearing
transaction accounts 29,039,236 17,380,363 29,437,107
Savings 80,493,705 64,522,914 79,663,175
Time deposits $100,000
and over 114,849,844 96,003,028 113,268,921
Other time deposits 87,392,005 51,299,038 72,845,121
Total deposits 355,105,812 261,082,355 334,436,898
Securities sold under
agreements to repurchase 4,127,758 3,195,332 3,859,904
Advances from Federal Home
Loan Bank 18,500,000 39,000,000 23,500,000
Junior subordinated
debentures 10,310,000 - 10,310,000
Accrued interest payable 435,373 689,868 446,303
Other liabilities 1,018,048 993,355 834,144
Total Liabilities 389,496,991 304,960,910 373,387,249
Shareholders' Equity:
Common Stock 33,703 32,294 33,061
Capital Surplus 24,703,902 23,597,787 24,127,329
Treasury Stock - (9,896) (9,896)
Restricted Stock (91,840) - -
Retained Earnings 6,185,550 4,049,900 5,611,847
Accumulated other
comprehensive income (257,171) (60,136) (111,706)
Total Shareholders
Equity 30,574,144 27,609,949 29,650,635
Total Liabilities and
Shareholders Equity 420,071,135 332,570,859 403,037,884
SOURCE First Reliance Bancshares, Inc.
-0- 04/18/2006 C CLM011
/CONTACT: Jeffrey A. Paolucci, Senior Vice President and Chief Financial
Officer of First Reliance Bank, +1-843-674-3250, or
jpaolucci@firstreliance.com/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web site: http://www.firstreliance.com /
(FSRL)
CO: First Reliance Bancshares, Inc.
ST: South Carolina
IN: FIN
SU: ERN
LA
-- CLTU035 --
0706 04/18/200610:09 EDThttp://www.prnewswire.com
