FLORENCE, S.C., April 22 /PRNewswire-FirstCall/ — First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, today announced unaudited net income for the quarter ended March 31, 2008 of $826,123.
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Unaudited net income for the quarter ended March 31, 2008 was $826,123, an increase of $118,916, or 17%, over the $707,207 reported for the quarter ended March 31, 2007. Earnings benefited from strong growth in both net interest income and non-interest income. Specifically, net interest income increased 13% to $4,967,984 for the quarter ended March 31, 2008, while non-interest income increased by 6% to $1,261,044.
Basic earnings per share were $0.24, an increase of $0.03, or 12%, from $0.21 reported in the prior- year period. The earnings per share for the quarter ended March 31, 2008 is based on average shares of 3,513,174 compared to 3,432,022 shares reported in the prior- year period.
At March 31, 2008, total assets were $597.6 million, an increase of $114 million, or 24% over the $483.5 million reported for March 31, 2007. Loans increased by $94.9 million, or 25% to $467.5 million, funded primarily by growth in deposits. Deposits increased by $41.7 million, or 10% to $450 million.
“Record high net income results were seen during the first quarter of 2008,” commented Rick Saunders, President and CEO. “Our net income was the highest in the bank’s history due largely to market opportunities, improved rate conditions and margin expansion, and diligent expense management practices.
“Our focus for 2008 is to grow core deposits, leverage our customer loyalty ratings, while improving our operating efficiencies and controlling and managing operating expenses. Our emphasis on expense management has proven successful thus far as our noninterest expense increased a nominal 3% quarter over quarter.”
“Despite a recent increase in nonperforming loans reported in the first quarter of 2008, our asset quality remains satisfactory. Nonperforming loans are limited in number and are relatively isolated to a specific market. We continue to aggressively fund our loan loss reserve as we expensed a record $501,603 to the allowance for loan losses in the first quarter of 2008. Our proactive and aggressive risk management systems continue to provide us with the confidence that we are taking appropriate actions to maintain our asset quality.”
“Throughout 2008 we will continue to take great strides to further enhance our commitment to be Easy To Do Business With(TM). During the second quarter we will unveil two new products aimed at providing our customers a more convenient banking experience. Our safe and secure eStatements will provide customers with faster statement delivery and the ability to view their statements from anywhere they have access to a personal computer and email. In addition to eStatements, we have also added Easy Link Remote Deposit Capture to our suite of convenient products and services, making it quick and easy for our business customers to make their deposits from their place of business. It is our belief that these new innovative products and services will enhance our strategic focus of growing our low cost/no cost deposit accounts and improving our operating efficiencies.”
“Directly inline with our Easy To Do Business With(TM) standard of banking, we will further expand the franchise during 2008 by opening a new branch in West Columbia. Additional expansion efforts will be announced throughout the year. We believe that we are well positioned to continue our positive trends, and we look forward to making 2008 the most successful year in the company’s history.”
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 four times(ElliottDavis). First Reliance Bank operates in 5 branch locations and 2 loan production offices. It’s Easy To Do Business With(TM) products and services include: Totally FREE Checking, Totally FREE Business Checking, FREE Coin Machines, a 5 Way Mortgage Service Promise, a Nationwide NO FEE ATM Network, and 8-8 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 $591.7 million in assets as of December 31, 2007. First Reliance Bank, which was opened in 1999, is the Company’s sole operating subsidiary. The bank has 2 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 Myrtle Beach and Greenville, SC. Additional branch expansions include new sites located in 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
First Reliance Bancshares, Inc.
Consolidated Reports of Income
Three Months Three Months
Ended Ended
Mar 31,2008 Mar 31,2007
(Unaudited) (Unaudited)
Interest Income
Loans and Fees 9,099,475 7,892,673
Investment Securities
Taxable 346,384 234,334
Tax exempt 327,610 170,141
Federal funds sold 1,893 78,659
Other interest income 51,290 40,305
Total 9,826,652 8,416,112
Interest Expense
Time deposits $100,000 and over 2,037,053 1,392,470
Other deposits 1,902,095 2,187,668
Other interest expense 919,520 447,293
Total 4,858,668 4,027,431
Net Interest Income 4,967,984 4,388,681
Provision for loan losses (501,603) (135,234)
Net Interest Income after provision 4,466,381 4,253,447
Noninterest Income
Service charges on deposit accounts 437,135 442,670
Gain on sale of mortgage loans 558,687 470,242
Brokerage fees 50,330 40,860
Credit life insurance commissions 1,463 3,299
Other charges, commissions and fees 111,809 74,463
Gain on sale of securities available for sale - 1,021
Gain on sale of other real estate (70,750) 9,365
Gain on sale of fixed assets - 14,415
Other 172,370 136,850
Total 1,261,044 1,193,185
Noninterest Expense
Salaries and benefits 2,944,751 2,595,775
Occupancy 339,703 337,396
Furniture and equipment related 212,959 190,661
Other operating 1,166,233 1,381,410
Total 4,663,646 4,505,242
Income before tax 1,063,779 941,390
Income tax expense 237,656 234,183
Net Income 826,123 707,207
Basic earnings per share 0.24 0.21
Diluted earnings per share 0.23 0.20
First Reliance Bancshares, Inc.
Balance Sheet
March 31 March 31 December 31
2008 2007 2007
(Unaudited) (Unaudited) Audited
Assets:
Cash and Cash Equivalents
Cash and Due From Banks 7,929,684 8,838,605 7,164,651
Federal funds sold - 24,069,000 -
Total cash and cash
equivalents 7,929,684 32,907,605 7,164,651
Investment securities
Securities available for sale 57,630,118 35,644,764 58,580,313
Nonmarketable equity
securities 4,372,200 1,780,400 3,930,400
Investment in trust 310,000 310,000 310,000
Total investment securities 62,312,318 37,735,164 62,820,713
Loans held for sale 18,403,137 8,099,771 19,600,850
Loans receivable 473,069,194 376,786,671 468,137,690
Less allowance for loan losses (5,539,601) (4,134,062) (5,270,607)
Loans, net 467,529,593 372,652,609 462,867,083
Premises, furniture, and
equipment, net 23,713,588 15,540,456 22,233,746
Accrued interest receivable 2,977,560 2,274,308 3,092,767
Other real estate owned 327,950 1,087,537 196,949
Cash surrender value life
insurance 10,662,027 10,234,776 10,540,273
Other assets 3,737,044 3,015,590 3,187,180
Total Assets 597,592,901 483,547,816 591,704,212
Liabilities:
Deposits:
Noninterest bearing
transaction accounts 45,178,443 50,252,975 43,542,528
Interest bearing transaction
accounts 31,058,228 31,372,785 39,450,392
Savings 90,229,421 79,117,431 85,819,481
Time deposits $100,000 and
over 185,683,283 135,534,391 169,825,252
Other time deposits 97,861,715 112,034,558 110,860,062
Total deposits 450,011,090 408,312,140 449,497,715
Securities sold under agreements
to repurchase 7,858,845 8,671,324 7,927,754
Federal funds purchased 11,482,000 - 13,359,000
Advances from Federal Home Loan
Bank 73,500,000 19,000,000 69,000,000
Junior subordinated debentures 13,310,000 10,310,000 13,310,000
Accrued interest payable 684,067 749,925 767,577
Other liabilities 2,960,384 1,405,008 814,261
Total Liabilities 559,806,386 448,448,397 554,676,307
Shareholders' Equity:
Common Stock 35,132 34,596 34,946
Capital Surplus 26,047,924 25,567,900 25,875,013
Restricted Stock (273,344) (112,946) (152,762)
Retained Earnings 12,039,496 9,564,963 11,417,276
Accumulated other
comprehensive income 94,282 44,906 (1,370)
Treasury Stock (156,975) - (145,198)
Total Shareholders Equity 37,786,515 35,099,419 37,173,103
Total Liabilities and Shareholders
Equity 597,592,901 483,547,816 591,849,410
SOURCE First Reliance Bancshares, Inc.
Contact: Jeffrey A. Paolucci, Senior Vice President and Chief Financial Officer, +1-843-674-3250, jpaolucci@firstreliance.com, of First Reliance Bancshares, Inc.
