FLORENCE, S.C., April 18 /PRNewswire-FirstCall/ — First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, reported unaudited net income for the quarter ended March 31, 2007 of $707,207, an increase of $133,504, or 23.27%, over the $573,703 reported for the quarter ended March 31, 2006. Earnings benefited from strong growth in both net interest income and non-interest income. Specifically, net interest income increased 9.48% to $4,388,681 for the quarter ended March 31, 2007, while non-interest income increased by 27.14% to $1,193,185. Basic earnings per share were $0.21, an increase of $0.04, or 23.53%, from $0.17 reported in the prior-year period. The earnings per share for the quarter ended March 31, 2007 is based on average shares of 3,432,022 compared to 3,344,344 shares reported in the prior-year period.
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At March 31, 2007, total assets were $483.5 million, an increase of $63.5 million, or 15.11% over the $420.1 million reported for March 31, 2006. Loans increased $49.8 million, or 15.23% to $376.8 million, funded primarily by growth in deposits. Deposits increased $53.2 million, or 14.98% to $408.3 million reported the prior year period.
“The accelerated growth that we experienced in 2006 continued into the first quarter of 2007,” commented Rick Saunders, President and CEO. “2007 will be a year of expansion as we continue to grow our footprint throughout the state. We anticipate hosting two grand openings during the summer of 2007 at our new regional headquarters in Lexington, SC and a new state-of-the-art branch in Mt. Pleasant, SC. Additional sites for expansion will also be announced throughout the year, including new branches in Myrtle Beach, and Charleston on Sam Rittenberg Blvd. In addition to our new branches, we also recently opened a training facility in Florence and loan production offices in Greenville and Rock Hill, both of which will convert to full service branches over the next year.
“Remaining true to our commitment to be Easy-To-Do-Business-With(TM), our doors are now open from 8-8 Mon.-Sat.(TM) in both of our Florence locations. These hours will also be available in Lexington and Mt. Pleasant following their grand openings. To continue to provide superior customer service, our expansion efforts require us to also grow our current number of associates. We remain dedicated to hiring and training the best of the best. Our new Learning Center will provide us with space for distributed learning and teaming of co- workers in order to foster our commitment to providing excellent customer service,” stated Rick Saunders.
Jeff Paolucci, Senior Vice President and Chief Financial Officer, commented on the quarterly performance results by saying, “The first quarter of 2007 was an outstanding quarter. Total deposits increased 14.98% over the prior year period, due much to the success of our expansion initiatives and our Easy-To-Do-Business-With(TM) standard. Every product or service that we offer is measured against this standard. For example, our No FEE ATM Network and 8-8 extended banking hours promise a convenient banking experience for our customers. The first quarter of 2007 foreshadows an exciting year of growth not only financially, but growth through expansion in facilities, new employees, and new community efforts.”
The Company’s one bank subsidiary, First Reliance Bank, 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 four times including 2006 (Elliott Davis). First Reliance Bank operates in five locations with Totally FREE Checking, Totally FREE Business, FREE coin machines, 5 Way Mortgage Service Promises, and 8-8 Mon.-Sat. Extended Hours in their Florence locations. Based in Florence, South Carolina, First Reliance Bancshares, Inc., is a bank holding company with approximately $484 million in assets as of March 31, 2007. First Reliance Bank, which was opened in 1999, is the Company’s sole operating subsidiary.
The bank has five full service branch locations which include two Florence branch locations, as well as 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. During the fourth quarter of 2005, the bank acquired its third Charleston branch site located on Sam Rittenberg Blvd. Additional branch expansions over the next 24 months include new sites located in North Charleston, the Midlands Region, and the Upstate Region of South Carolina. 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 http://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 31,2007 Mar 31,2006
(Unaudited) (Unaudited)
Interest Income
Loans and Fees 7,892,673 6,397,688
Investment Securities
Taxable 234,334 270,349
Tax exempt 170,141 152,401
Federal funds sold 78,659 177,871
Other interest income 40,305 26,018
Total 8,416,112 7,024,327
Interest Expense
Time deposits $100,000 and over 1,392,470 1,060,179
Other deposits 2,187,668 1,544,759
Other interest expense 447,293 410,720
Total 4,027,431 3,015,658
Net Interest Income 4,388,681 4,008,669
Provision for loan losses (135,234) (250,285)
Net Interest Income after provision 4,253,447 3,758,384
Noninterest Income
Service charges on deposit accounts 442,670 364,379
Gain on sale of mortgage loans 470,242 358,450
Brokerage fees 40,860 31,465
Credit life insurance commissions 3,299 6,429
Other charges, commissions and fees 74,463 59,766
Gain on sale of securities
available for sale 1,021 -
Gain on sale of other real estate 9,365 -
Gain on sale of fixed assets 14,415 (14)
Other 136,850 117,980
Total 1,193,185 938,455
Noninterest Expense
Salaries and benefits 2,595,775 2,240,635
Occupancy 337,396 288,986
Furniture and equipment related 190,661 162,578
Other operating 1,381,410 1,193,086
Total 4,505,242 3,885,285
Income before tax 941,390 811,554
Income tax expense 234,183 237,851
Net Income 707,207 573,703
Basic earnings per share 0.21 0.17
Diluted earnings per share 0.20 0.16
First Reliance Bancshares,Inc.
Balance Sheet
March 31 March 31 December 31
2007 2006 2006
(Unaudited) (Unaudited) Audited
Assets:
Cash and Cash Equivalents
Cash and Due From Banks 8,838,605 9,208,595 17,328,075
Federal funds sold 24,069,000 15,250,000 14,135,000
Total cash and cash
equivalents 32,907,605 24,458,595 31,463,075
Investment securities
Securities available for sale 35,644,764 37,356,234 35,931,271
Nonmarketable equity securities 1,780,400 1,956,350 2,187,600
Investment in trust 310,000 310,000 310,000
Total investment securities 37,735,164 39,622,584 38,428,871
Loans held for sale 8,099,771 7,760,509 6,632,010
Loans receivable 376,786,671 326,997,202 353,491,036
Less allowance for loan losses (4,134,062) (3,594,008) (4,001,881)
Loans, net 372,652,609 323,403,194 349,489,155
Premises, furniture, and equipment,
net 15,540,456 10,644,038 13,770,135
Accrued interest receivable 2,274,308 1,984,566 2,464,531
Other real estate owned 1,087,537 1,518,896 1,386,380
Cash surrender value
life insurance 10,234,776 8,644,788 10,134,036
Other assets 3,015,590 2,033,965 2,442,529
Total Assets 483,547,816 420,071,135 456,210,722
Liabilities:
Deposits:
Noninterest bearing
transaction accounts 50,252,975 43,331,022 42,107,434
Interest bearing
transaction accounts 31,372,785 29,039,236 33,243,099
Savings 79,117,431 80,493,705 78,831,730
Time deposits $100,000
and over 135,534,391 114,849,844 111,991,864
Other time deposits 112,034,558 87,392,005 106,763,956
Total deposits 408,312,140 355,105,812 372,938,083
Securities sold under agreements to
repurchase 8,671,324 4,127,758 8,120,014
Advances from Federal Home Loan
Bank 19,000,000 18,500,000 28,500,000
Junior subordinated debentures 10,310,000 10,310,000 10,310,000
Accrued interest payable 749,925 435,373 766,276
Other liabilities 1,405,008 944,864 1,483,086
Total Liabilities 448,448,397 389,423,807 422,117,459
Shareholders' Equity:
Common Stock 34,596 33,703 34,249
Capital Surplus 25,567,900 24,703,902 25,257,814
Restricted Stock (112,946) (91,840) (66,131)
Retained Earnings 9,564,963 6,185,550 8,857,755
Accumulated other
comprehensive income 44,906 (183,987) 9,576
Total Shareholders Equity 35,099,419 30,647,328 34,093,263
Total Liabilities and Shareholders
Equity 483,547,816 420,071,135 456,210,722
SOURCE First Reliance Bancshares, Inc.
Contact: Jeffrey A. Paolucci, Senior Vice President and Chief Financial Officer of First Reliance Bank, +1-843-674-3250, jpaolucci@firstreliance.com
