Dear Valued Customer, As we move forward into 2011, I wanted to take a moment to share a few thoughts with all of our customers. From our beginnings eleven years ago, First Reliance Bank has been driven by one powerful purpose: “To Make the Lives of Our Customers Better.” We defined a set of seven core values designed to generate everyday actions that will inspire customers to want to bank with us. We set out not to be just another faceless bank. We’ve dedicated ourselves to fulfilling our Customer Value Promise: “We offer an incredible customer experience, distinctive customer programs, and unmatched convenience.” Our passion is inwardly directed as well and includes a commitment to deliver an incredible work experience for everyone working at First Reliance Bank. In that light, I am happy to share with you that our bank was named One of the Best Places to Work in South Carolina for the 5th year running. There’s no doubt that the last few years have been economically difficult ones for our country, our region and our industry. Fortunately, First Reliance Bank saw serious problems coming and began taking appropriate steps to reduce risk and strengthen the bank’s capital base. Our performance has also been helped by the fact that we operate in multiple, diverse markets. With longer term strategic objectives in mind, we’ve taken the last two years to build one of the finest bank management teams in the southeast. We’ve continued to enhance and fine tune our first-class customer service model. We’ve further developed our operational platform to insure greater quality and efficiency. We believe more than ever in the strategic advantage of being a community bank where our customers actually have access to a decision maker with authority, autonomy and the experience to help. Our bigger counterparts all too often have no real stake in the well being of the communities in which they operate. At First Reliance, our local knowledge and flexibility gives us more opportunity to design deposit and lending products that complement and support the growth of our small business customers and families within the communities we serve. As the economy begins to move again, First Reliance has positioned itself to be a market leader in growth, earnings and in delivering an incredible experience for our customers. In closing, on behalf of all of us at First Reliance Bank, let me say thank you for choosing to bank with us. We value your trust and we will continue to dedicate ourselves to making the lives of our customers better. Sincerely, Rick Saunders CEO