FLORENCE, S.C., Oct. 22 /PRNewswire-FirstCall/ — First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL) the holding company for First Reliance Bank reported net income for the quarter ended September 30, 2004 of $435,310, an increase of $221,406, or 104%, over the $213,904 reported for the quarter ended September 30, 2003. Earnings benefited from strong growth in both net interest income and noninterest income. Specifically, net interest income increased 30% to $2.1 million in the third quarter of 2004, while noninterest income grew 89% to $1.0 million. Diluted earnings per share were $0.16, an increase of $0.07, or 78% from the $0.09 reported in the prior-year period.
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Net income for the nine months ended September 30, 2004 was $1.0 million, an increase of $264,002, or 36% from the level reported in the prior year nine-month period. As was the case with the quarterly results, the higher profitability was driven primarily by higher net interest income, which increased 40%, and noninterest income, which increased 35%. Diluted earnings per share were $0.38 compared to $0.35 for the prior-year period, an increase of $0.09 or 9%.
At September 30, 2004, total assets were $255.9 million, an increase of $94.8 million, or 59% over the $161.1 million reported for September 30, 2003. Loans increased $79.1 million or 61% to $209.0 million, funded primarily by growth in deposits. Deposits increased to $208.9 million, up 64% from $127.3 million for the prior-year period.
Rick Saunders, President and CEO commented, “This quarter we achieved record earnings, even as we continued to make significant investments in our franchise. Our outstanding growth is driven by strong loan demand in our markets, as small and mid-sized businesses are attracted to our combination of lending expertise and high-quality of service. This quarter, we began offering wholesale mortgage services and title insurance services which will diversify and augment revenue streams. Additionally this quarter, we commenced a private stock offering to strengthen our capital base and provide support for future growth initiatives. As of September 30, 2004, we had secured commitments totaling $6.5 million of which we have placed $3.4 million.
Jeff Paolucci, SVP and CFO commented “Our branch expansion strategy has required a significant investment in infrastructure. We believe this investment positions us well for future earnings improvements as well as enhanced franchise and shareholder value. During the second quarter of 2004, we entered the Columbia, South Carolina market with our third branch in Lexington, South Carolina. This location will serve as our regional office for our expansion throughout the Columbia-Midlands region. Further expansion into the Charleston, South Carolina market is anticipated by the first quarter of 2005.”
Based in Florence, South Carolina, First Reliance Bancshares, Inc., is a bank holding company with approximately $256 million in assets as of September 30, 2004. 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 offices and a Technology Center in Florence, South Carolina and one branch in Lexington, South Carolina. First Reliance Bank focuses heavily on personal customer service and offers a full range of financial services. Personal products include checking and savings accounts, money market accounts, CDs and IRAs, and personal mortgage loans, while business products include checking and savings accounts, commercial lending services, money market accounts, and a new deposit courier service. In September 2004, the Company began offering Wholesale Mortgage Services and Title Insurance Services. The Company also provides Internet banking, electronic bill paying services and an overdraft privilege to its customers. 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 http://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.
First Reliance Bancshares, Inc.
Consolidated Reports of Income
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sep Sep Sep Sep
30,2004 30,2003 30,2004 30,2003
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Interest Income
Loans and Fees 2,948,999 2,042,202 7,998,118 5,388,990
Taxable Securities 197,377 130,296 537,239 455,337
Nontaxable Securities 94,869 90,513 297,062 267,116
Nonmarketable Securities 9,582 5,347 26,310 11,390
Federal Funds Sold and Other 285 3,051 2,313 31,217
Total 3,251,112 2,271,409 8,861,042 6,154,050
Interest Expense
Deposits 999,588 559,156 2,379,843 1,611,185
FHLB Advances 121,241 70,429 360,924 170,012
Federal Funds Purchased and
Repurchase Agreements 5,059 4,739 13,064 14,217
Total 1,125,888 634,324 2,753,831 1,795,414
Net Interest Income 2,125,224 1,637,085 6,107,211 4,358,636
Provision for loan losses 368,500 293,000 846,762 541,067
Net Interest Income after
provision 1,756,724 1,344,085 5,260,449 3,817,569
Noninterest Income
Residential mortgage
origination fees 164,385 209,568 407,008 649,973
Service charges on
deposit accounts 337,912 242,675 895,291 692,457
Brokerage fees 21,561 5,346 103,728 24,632
Gain on sale of securities
available for sale 1,105 2,990 3,808 2,990
Gain on sale of Other
Real Estate 5,447 5,447
Credit life insurance
commissions 16,879 12,906 66,723 44,823
Other charges, commissions
and fees 440,783 48,358 630,357 149,847
Total 988,072 521,843 2,112,362 1,564,722
Noninterest Expense
Salaries and employee
benefits 1,253,052 900,620 3,486,375 2,447,470
Occupancy expense 109,422 73,277 276,838 163,281
Furniture and equipment
expense 145,146 100,339 446,168 240,370
Loss on sale of other
real estate 7,223 9,502
Other operating expenses 612,568 495,054 1,736,941 1,504,802
Total 2,120,188 1,576,513 5,946,322 4,365,425
Income before tax 624,608 289,415 1,426,489 1,016,866
Income tax expense 189,298 75,511 424,808 279,187
Net Income 435,310 213,904 1,001,681 737,679
Basic earnings per share 0.17 0.09 0.40 0.36
Diluted earnings per share 0.16 0.09 0.38 0.35
September 30December 31September 30
2004 2003 2003
(Unaudited) (Audited) (Unaudited)
Assets:
Cash and Cash Equivalents
Cash and Due Froms 4,078,010 4,693,102 1,864,850
Federal funds sold 2,620,000 100,000
Total cash and cash
equivalents 6,698,010 4,793,102 1,864,850
Investment securities
Securities available for
sale 28,955,920 27,688,992 22,295,602
Nonmarketable equity
securities 1,115,725 1,055,000 795,600
Other Investments 100,000
Total investment
securities 30,071,645 28,743,992 23,191,202
Loans held for sale 1,742,151 971,627
Loans receivable 207,350,839 139,389,064 129,919,160
Less allowance for loan
losses (2,456,655) (1,752,282) (1,586,732)
Loans, net 204,894,184 137,636,782 128,332,428
Premises, furniture, and
equipment, net 5,900,265 5,796,819 5,799,103
Accrued interest receivable 1,222,019 949,663 737,713
Other real estate owned 673,528 279,393 313,954
Other assets 4,781,271 1,192,505 909,745
Total Assets 255,983,073 180,363,883 161,148,995
Liabilities:
Deposits:
Noninterest bearing
transaction accounts 25,657,889 19,084,520 18,086,576
Interest bearing transaction
accounts 16,438,391 15,866,254 17,653,182
Savings 39,915,189 18,217,378 17,653,873
Time deposits $100,000 and
over 84,332,588 54,364,004 44,474,235
Other time deposits 42,619,224 31,882,795 29,502,475
Total deposits 208,963,281 139,414,951 127,370,341
Securities sold under agreements
to repurchase 2,929,998 2,363,570 2,457,908
Federal funds purchased 0 1,043,000 0
Advances from Federal Home Loan
Bank 20,000,000 19,100,000 12,500,000
Accrued interest payable 606,431 442,233 429,880
Other liabilities 1,014,686 297,490 1,045,274
Total Liabilities 233,514,396 162,661,244 143,803,403
Shareholders' Equity:
Common Stock 27,984 24,667 24,666
Capital Surplus 18,785,525 15,106,070 15,106,069
Retained Earnings 3,327,284 2,325,602 2,047,482
Accumulated other
comprehensive income 327,884 246,300 167,375
Total Equity 22,468,677 17,702,639 17,345,592
Total Liabilities and
Shareholders Equity 255,983,073 180,363,883 161,148,995
Contact:
Jeffrey A. Paolucci
Senior Vice President and Chief Financial Officer
(843) 674-3250
Email: jpaolucci@firstreliance.com
SOURCE First Reliance Bancshares, Inc.
-0- 10/22/2004
/CONTACT: Jeffrey A. Paolucci, Senior Vice President and Chief Financial
Officer of First Reliance Bancshares, Inc., +1-843-674-3250, or
jpaolucci@firstreliance.com /
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/Web site: http://www.firstreliance.com /
(FSRL)
CO: First Reliance Bancshares, Inc.
ST: South Carolina
IN: FIN OTC
SU: ERN
PF-JJ
-- CLF051 --
1818 10/22/200417:58 EDThttp://www.prnewswire.com
