FLORENCE, S.C., Jan. 23 /PRNewswire-FirstCall/ — Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, reported unaudited pre-tax income for the year ended December 31, 2005 of $2,736,962, an increase of $827,730, or 43%, over the $1,909,232 reported for the year ended December 31, 2004. Unaudited net income increased 45%, to $1,947,546 as compared to $1,338,699 reported in the prior-year period. Earnings benefited from strong growth in both net interest income and non- interest income. Specifically, interest income increased 74% to $23.1 million for the year ended December 31, 2005, while non-interest income increased by 36% to $3.2 million. Basic earnings per share were $0.60, an increase of $0.08 from $0.52 reported in the prior-year period. The earnings per share for the year ending December 31, 2005 is based on average shares of 3,436,750 compared to 2,580,251 shares reported in the prior-year period.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO)
Net Income for the three months ended December 31, 2005 was $642,116, an increase of $305,098, or 91% from the level reported in the prior year three- month period. As was the case with the year-end results, the higher profitability was driven primarily by higher interest income, which increased 62%, and non-interest income, which increased 57%. Basic earnings per share were $0.20 compared to $0.15 for the prior-year period, an increase of $0.05.
At December 31, 2005, total assets were $403.1 million, an increase of $118.1 million, or 41% over the $285.0 million reported for December 31, 2004. Loans increased $73.1 million, or 31% to $311.5 million, funded primarily by growth in deposits. Deposits increased to $334.4 million, up 48% from $225.5 million reported the prior year period.
President and Chief Executive Officer, Rick Saunders commented, “This is a lifting time for our Company and we are excited about the outstanding results produced throughout the organization. At First Reliance Bank, Low Cost/No Cost deposit growth was the fuel for that excitement. We were able to grow that segment over 32% for the year and that allowed us to validate our continued investment in our retail strategy. Our deposit trends allow us to leverage our service strategy in order to expand our lucrative loan portfolio. We increased our asset size from 2004 to 2005, in part due to our expansion into the Charleston, SC market. However, our organic same store growth was substantial averaging about 40% for the existing three branches.
“Continuing to focus on superior service and delivery will be the focus in 2006. We have set a goal to measure everything we do against our Easy-To-Do- Business-With(TM) standard. We have seen customers respond to our approach and have rewarded us with a customer satisfaction rating of 94%, where 81% of the respondents scored us in the highest category. Our associates continue to over-perform at every opportunity. We look forward to 2006 as we have set our goals high, as in the past. I feel fortunate to be part of this wonderful ride.”
2005 highlights include:
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, and 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
Twelve Months Ended Three Months Ended
December 31 December 31
2005 2004 2005 2004
(Unaudited) (Audited) (Unaudited) (Audited)
Interest Income
Loans and Fees 21,238,443 12,094,388 5,990,798 3,771,425
Taxable Securities 770,863 723,439 240,890 186,200
Nontaxable Securities 553,993 415,347 153,070 118,285
Federal Funds Sold
and Other 569,662 57,307 265,572 28,684
Total 23,132,961 13,290,481 6,650,330 4,104,594
Interest Expense
Deposits 7,583,234 1,870,930 2,323,896 (508,913)
FHLB Advances 988,841 1,627,009 217,865 1,266,085
Federal Funds Purchased and
Repurchase Agreements 100,656 563,129 37,583 550,065
Total 8,672,730 4,061,068 2,579,343 1,307,237
Net Interest Income 14,460,231 9,229,413 4,070,987 2,797,357
Provision for loan losses (1,811,317) (1,361,762) (794,772) (515,000)
Net Interest Income after
provision 12,648,914 7,867,651 3,276,215 2,282,357
Noninterest Income
Residential mortgage
origination fees 1,261,438 584,023 414,190 177,015
Service charges on
deposit accounts 1,357,214 1,231,759 336,806 336,468
Brokerage fees 160,569 131,626 38,275 27,898
Gain on sale of securities
available for sale 0 5,971 0 2,163
Gain (loss) on Sale of
Other Real Estate (66,815) (55,966) 0 (61,413)
Gain (loss) on Sale
of Fixed Assets (287) (20,000) 0 (20,000)
Credit life insurance
commissions 32,606 82,090 10,008 15,367
Other charges, commissions
and fees 496,862 420,020 129,618 114,508
Total 3,241,587 2,379,523 928,897 592,006
Noninterest Expense
Salaries and employee
benefits 7,136,376 4,874,035 1,649,569 1,387,660
Occupancy expense 919,584 425,686 276,746 148,848
Furniture and equipment
expense 712,309 616,186 188,447 170,018
Other operating expenses 4,385,270 2,422,035 1,196,722 685,094
Total 13,153,539 8,337,942 3,311,484 2,391,620
Income before tax 2,736,962 1,909,232 893,628 482,743
Income tax expense 789,416 570,533 251,512 145,725
Net Income 1,947,546 1,338,699 642,116 337,018
Basic earnings per share $0.60 $0.52 $0.20 $0.15
Diluted earnings per share $0.57 $0.48 $0.18 $0.14
First Reliance Bancshares, Inc.
Balance Sheet
December 31 December 31
2005 2004
Unaudited Audited
Assets:
Cash and Cash Equivalents
Cash and Due Froms 7,264,897 3,803,535
Federal funds sold 22,442,000 1,042,000
Total cash and cash equivalents 29,706,897 4,845,535
Investment securities
Securities available for sale 37,121,479 28,567,666
Nonmarketable equity securities 1,745,850 1,714,700
Investment in Jr Subordinated Debt 310,000 0
Total investment securities 39,177,329 30,282,366
Loans held for sale 7,994,603 1,332,890
Loans receivable 311,544,385 238,362,092
Less allowance for loan losses (3,419,368) (2,758,225)
Loans, net 308,125,017 235,603,867
Premises, furniture, and equipment, net 10,020,537 5,891,402
Accrued interest receivable 2,233,648 1,458,673
Other real estate owned 345,550 320,598
Other assets 5,478,209 5,235,552
Total Assets 403,081,791 284,970,883
Liabilities:
Deposits:
Noninterest bearing transaction
accounts 39,222,574 27,560,581
Interest bearing transaction
accounts 29,437,107 15,525,590
Savings 79,663,175 46,299,198
Time deposits $100,000 and over 113,268,921 93,975,912
Other time deposits 72,845,121 42,132,546
Total deposits 334,436,898 225,493,827
Securities sold under agreements to
repurchase 3,859,904 3,061,903
Federal funds purchased 0 0
Advances from Federal Home Loan Bank 23,500,000 27,900,000
Junior Subordinated Debentures 10,310,000 0
Accrued interest payable 490,209 742,017
Other liabilities 834,145 414,487
Total Liabilities 373,431,155 257,612,234
Shareholders' Equity:
Common Stock 33,061 32,039
Capital Surplus 24,127,329 23,428,034
Treasury Stock (9,896) (7,396)
Retained Earnings 5,611,847 3,664,301
Accumulated other comprehensive
income (111,706) 241,671
Total Equity 29,650,636 27,358,649
Total Liabilities and Shareholders Equity 403,081,791 284,970,883
SOURCE First Reliance Bancshares, Inc.
-0- 01/23/2006
/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
DL-JK
-- CLM006 --
0813 01/23/200607:00 ESThttp://www.prnewswire.com
