In the news release, First Reliance Announces 3rd Quarter Net Income of $2.2 Million, issued earlier today by First Reliance Bancshares, Inc. over PR Newswire, we are advised by the company that the Three Months Ended September 30 2007 column in the Income Tax Expense line in the Income Statement table should read “343,331” rather than “1,548,669” as originally issued inadvertently.
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First Reliance Announces 3rd Quarter Net Income of $2.2 Million
FLORENCE, S.C., Oct. 22 /PRNewswire-FirstCall/ — First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, today announced 3rd quarter 2007 net income of $2.2 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO )
Unaudited net income for the nine months ended September 30, 2007 was $2.2 million, or $0.62 per diluted share, compared to $2.3 million, or $0.65 per diluted share, for the third quarter of 2006.
Unaudited net income for the three months ended September 30, 2007 was $584,877, compared to $864,912 reported in the prior-year period. Net interest income was $4.7 million in the third quarter of 2007, while non-interest income was $1.3 million. Basic earnings per share were $0.17, compared to the $0.25 reported in the prior year period.
As of September 30, 2007, total assets were $524.8 million, an increase of $76.2 million or 17%, over the $448.6 million reported for September 30, 2006. Loans increased 21% to $434.4 million, funded primarily by growth in deposits. Deposits increased to $440.8 million, up 18% from $373.4 million reported the prior year period.
“Throughout the 3rd quarter of 2007, much of our growth came from our focus on our Easy To Do Business WithTM brand of banking. We introduced Same Day banking allowing customers immediate access to their same day deposits until 8 pm Monday through Friday. For our business customers we introduced remote deposit capture making it quick and easy for them to make their deposits from their place of business.” Our new branch offices in Lexington and Charleston are generating record number of accounts and have experienced strong increases in service per household. commented Rick Saunders, President and CEO.
“While we have realized several positive accomplishments this quarter, the decline in net income can be attributed to our investment in branch expansion and current market conditions. I am certain that our strong retail strategy, along with our emphasis on expense management, will enhance our growth and improve our operating efficiency in 2008.”
“We are pleased to announce that for the past two consecutive years, we have been named One of the Best Places to Work in SC. Providing a great place to work, allows us to attract and retain high performing associates. We are proud that our associates come to work everyday to make a positive impact with every person that we touch. It is clear that the quality of our work environment has a direct impact on our customers’ experience.”
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 5 branch locations and three loan production offices. It’s “Easy To Do Business With(TM)” products and services include: Totally FREE Checking, Totally FREE Business, FREE coin machines, 5 Way Mortgage Service Promises, and 8-8 Mon. — Sat. Extended Hours in their Florence, Lexington, and Mt. Pleasant locations.
Based in Florence, South Carolina, First Reliance Bancshares, Inc., is a bank holding company with approximately $524.8 million in assets as of September 30, 2007. First Reliance Bank, which was opened in 1999, is the Company’s sole operating subsidiary. The bank has two branch locations, a Technology Center, and a Learning Center in Florence, SC. In addition, the bank’s aggressive statewide growth strategy includes current branches in Lexington, Mount Pleasant and downtown Charleston, SC, and Loan Production offices in Rock Hill and Greenville, SC. 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.OB. 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
Income Statement
Nine Months Ended Three Months Ended
September 30, September 30,
2007 2006 2007 2006
INTEREST INCOME
Loans & Fees 25,745,192 21,274,745 9,234,300 7,794,896
Investment Securities
Taxable 638,647 782,600 192,571 252,060
Tax-Exempt 552,593 477,460 199,636 162,552
Federal Funds Sold 384,420 514,916 48,010 239,121
Other Interest Income 121,958 95,302 34,078 36,149
Total Interest
Income $27,442,810 $23,145,023 9,708,595 $8,484,778
INTEREST EXPENSE
Time Deposits over
$100,000 5,062,204 3,395,663 1,909,567 1,267,808
Other Deposits 7,218,069 5,560,118 2,613,580 2,187,338
Other Interest Expense 1,412,171 1,256,653 488,234 482,954
Total Interest
Expense $13,692,444 $10,212,434 5,011,381 $3,938,100
Net Interest Income $13,750,366 $12,932,589 4,697,214 $4,546,678
Provision for Loan Losses $(869,397) $(1,167,991) (408,961) (477,205)
Net Interest Income after
Provision $12,880,969 $11,764,598 4,288,253 $4,069,473
NON-INTEREST INCOME
Service Charges on
Deposit Accounts 1,394,945 1,225,798 486,508 451,211
Gain/(Loss) on Sale
of Mortgage Loans 1,635,949 1,445,891 519,818 506,710
Brokerage Fees 124,220 97,226 38,351 37,451
Credit Life Insurance
Commissions 3,820 19,365 (786) 8,757
Other Charges,
Commissions & Fees 259,087 192,873 96,299 66,999
Gain/(Loss) on Sale
of Securities AFS 5,996 - - -
Gain/(Loss) on Sale
of Other Real Estate 4,187 23,529 (16,187) 5,872
Gain/(Loss) on Sale
of Fixed Assets 16,104 (13) - -
Other 437,163 419,450 140,557 155,896
Total $3,881,471 $3,424,119 1,264,560 $1,232,896
NON-INTEREST EXPENSE
Salaries & Benefits 7,922,140 6,872,949 2,694,710 2,373,243
Occupancy 979,034 844,153 323,142 282,565
Furniture &
Equipment Related 607,784 512,991 188,021 153,718
Other Operating 4,107,690 3,701,679 1,418,732 1,214,863
Total 13,616,648 11,931,772 4,624,605 $4,024,389
Income Before Tax $3,145,792 $3,256,945 928,208 $1,277,980
Income Tax Expense 946,000 995,414 1,548,669 413,068
Net Income $2,199,792 $2,261,531 584,877 $864,912
Basic Earnings per Share $0.64 $0.67 $0.17 $0.25
Diluted Earnings per Share $0.62 $0.65 $0.17 $0.25
Balance Sheet
September 30 September 30 December 31
2007 2006 2006
ASSETS (Unaudited) (Unaudited) Audited
Cash & Cash Equivalent
Cash & Due From Banks 12,303,957 4,921,941 17,328,075
Federal Funds Sold - 11,061,000 14,135,000
Total Cash & Cash
Equivalents $12,303,957 $15,982,941 31,463,075
Investment Securities
Securities AFS 34,101,361 36,073,452 35,931,271
Non-marketable Equity
Securities 1,905,400 2,136,350 2,187,600
Investment in Trust 310,000 310,000 310,000
Total Investment
Securities $36,316,761 $38,519,802 38,428,871
Loans Held For Sale $9,008,486 $9,580,370 6,632,010
Loans Receivable 434,389,319 360,080,594 353,491,036
Less Allowance for
Loan Losses (4,736,321) (3,961,005) (4,001,881)
Loans, Net $429,652,998 $356,119,589 349,489,155
Premises, Furniture,
& Equipment, net 20,828,686 11,928,161 13,770,135
Accrued Interest
Receivable 2,648,767 2,263,822 2,464,531
Other Real Estate Owned 134,349 1,610,985 1,386,380
Cash Surrender Value
Life Insurance 10,436,829 10,026,407 10,134,036
Other Assets 3,444,406 2,563,360 2,442,529
Total Assets 524,775,239 $448,595,437 456,210,722
LIABILITIES
Deposits
NIB Transaction Accounts 42,917,750 40,988,616 42,107,434
IB Transaction Accounts 53,403,111 30,442,146 33,243,099
Savings 82,138,499 82,545,388 78,831,730
Time Deposits
$100,000 & Over 150,067,645 117,579,499 111,991,864
Other Time Deposits 112,300,558 101,807,719 106,763,956
Total Deposits $440,827,563 $373,363,368 372,938,083
Securities Sold Under
Agreements to Repurchase 8,568,084 7,457,270 8,120,014
Fed Funds Purchased 3,000,000 -
Advances from FHLB 24,000,000 22,500,000 28,500,000
Jr. Subordinated 10,310,000 10,310,000 10,310,000
Accrued Interest Payables 913,244 700,496 766,276
Other Liabilities 752,981 1,397,991 1,483,086
Total Liabilities 488,371,872 415,729,125 393,617,459
SHAREHOLDER'S EQUITY:
Common Stock, $0.01 per value;
20,000,000 shares authorized,
3,485,574 and 3,424,878 shares
issued and outstanding at
September 30, 2007 and
December 31, 2006,
respectively
Common Stock 34,874 34,161 34,249
Capital Surplus 25,808,044 25,126,679 25,257,814
Restricted Stock (147,729) (74,979) (66,131)
Retained Earnings 11,057,547 7,873,378 8,857,755
Accumulated Other
Comprehensive Income (204,171) (92,927) 9,576
Treasury Stock (145,198) - -
Total Shareholder's
Equity $36,403,367 $32,866,312 34,093,263
TOTAL LIABILITIES &
SHAREHOLDER'S EQUITY $524,775,239 $448,595,437 456,210,722
SOURCE First Reliance Bancshares, Inc.
Contact: Jeffrey A. Paolucci, Senior Vice President and Chief Financial Officer, First Reliance Bancshares, Inc., +1-843-674-3250
