FLORENCE, S.C., Oct. 11 SC-First-Reliance-3Q
FLORENCE, S.C., Oct. 11 /PRNewswire-FirstCall/ -- First Reliance
Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First
Reliance Bank, today announced 3rd quarter 2008 unaudited net income of
$765,178, an increase of 31%.
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Unaudited net income for the three months ended September 30, 2008 was
$765,178, compared to $584,877 reported in the prior-year period. Earnings
benefited from growth in net interest income and reduction in non interest
expense. Net interest income increased to $4.9 million in the third quarter of
2008 over $4.7 million reported the prior year period. Non interest expense
decreased 3%, to $4.5 million in the third quarter of 2008. Diluted earnings
per share were $0.21, compared to the $0.17 reported in the prior year period.
Unaudited net income for the nine months ended September 30, 2008 was $2.3
million, an increase of 3%, or $0.63 per diluted share, compared to $2.2
million, or $0.62 per diluted share, for the nine months ended September 30,
2007. Net interest income increased to $14.7 million in the nine months ended
September 30, 2008, over $13.8 million reported the prior year period, while
non-interest income was $3.9 million for both periods.
As of September 30, 2008, total assets were $573.7 million, an increase of
$48.9 million or 9%, over the $524.8 million reported for September 30, 2007.
Loans increased 6% to $459.7 million, while deposits increased to $447.6
million, up 2% from $440.8 million reported for the prior year period.
"In this difficult economic environment, we are not without our
challenges; our nonperforming assets to total asset ratio has increased from
0.90 to 1.70 as September 30, 2008," commented Jeff Paolucci, Senior Vice
President and CFO of First Reliance Bank. "However, we have taken an
aggressive approach to increasing our loan reserves from 1.09% of loans
receivable to 1.35%. Even though we have made aggressive provisions for loan
losses throughout the year, we continue to exceed our earnings estimate."
"It is clear from the positive results of the 3rd quarter that our focus
on profitable growth backed by conservative business decisions has been a
rewarding business strategy for our bank," commented Rick Saunders, president
and CEO of First Reliance Bank. "In a challenging economic environment where
many companies have reported negative growth in earnings, we are pleased to
report positive growth in earnings. Our conservative investment practices have
never included risks related to Fannie Mae or Freddie Mac or any other high
risk mortgage backed securities. In addition, we do not make sub-prime
mortgage loans and have no exposure in this area. While other banks have
suffered the negative effects of these products and practices, First
Reliance's conservative and sound business and banking practices, have allowed
us to produce great earnings and position ourselves for future expansion and
growth throughout the industry turmoil."
"First Reliance is a financially sound and well capitalized company with a
solid deposit base, and 98% of our customers are satisfied with our excellent
service and convenience. We are a safe, strong, and profitable South Carolina
community bank specializing in relationship banking with individuals and
businesses and we have a long and bright future to look forward to."
Jeff Paolucci, Senior Vice President and CFO of First Reliance Bank,
commented, "First Reliance is financially strong and well capitalized. First
Reliance remains in every measurable category a "well capitalized" institution
under all regulatory standards. In fact, our capital ratios are well in
excess of all regulatory "well capitalized" thresholds, which we feel is a
significant accomplishment considering the state of the economy and the
problems facing other institutions. Our strong capital, liquidity, and focus
on closely monitoring and controlling expenses has increased our lending
capabilities and provided us the opportunity to expand our franchise. During
the first quarter of 2009, we will further enhance our commitment to be Easy
To Do Business With(TM) by opening a new branch in West Columbia, SC.
Additional 2009 expansion efforts include a branch on Forest Drive in
Columbia, SC."
"First Reliance is a strong and viable company committed to addressing
issues quickly and efficiently as we stay focused on building a strong company
for the future. As we continue to move forward in this difficult economic
environment, we will continue to carefully and cautiously monitor our banking
and business practices to prevent any potential and unforeseen challenges. Our
proactive and aggressive risk management systems and emphasis on credit
quality have resulted in our strong asset quality, which continues to improve.
In addition, our footprint expands into different geographic markets
throughout the state of South Carolina thereby reducing the credit risk
associated with operating in one location."
"We have realized several positive accomplishments this quarter," stated
Rick Saunders, president and CEO. "We are pleased to announce that for the
past 3 consecutive years, we have been named One of the Best Places to Work in
SC(TM). Providing a great place to work, allows us to recruit and develop
great, talented people who are aligned with our company's vision, mission, and
values. It is clear that the quality of our work environment has a direct
impact on our customers' experience, due to our recent customer satisfaction
score of 98%. We intend to continue to increase our level of customer
satisfaction by making every effort to meet and exceed our customers'
expectations. It is our goal to provide the utmost convenience in products
and services and excellent customer service."
"Throughout 2008, we will continue to focus on growing core deposits and
leveraging our customer loyalty ratings, while improving our operating
efficiencies and managing operating expenses. As we continue to diligently
maintain disciplined risk and credit management practices, I am confident that
we will continue to attain consistent and sustainable growth."
ABOUT FIRST RELIANCE BANK
First Reliance Bank, founded in 1999, has assets of approximately $574
million, and employs over 145 highly talented associates. The bank serves
Columbia, Charleston, Greenville and Florence markets in South Carolina. The
bank has been recognized for its success including being the only company ever
to be named to The Top 25 Fastest Growing Companies(TM) in South Carolina four
times including 2002, 2004, 2005, and 2006 (SC Chamber/Elliott Davis). In
June 2007, the bank was added to the Palmetto 25, a list of S.C.'s largest
publicly held companies. In 2006, 2007, and 2008 the bank was also recognized
as One of the Best Places to Work in South Carolina by the SC Chamber of
Commerce. First Reliance Bank offers a unique Hometown Heroes package of
benefits to serve those who are serving our communities, Totally FREE
Checking, Totally FREE Business, FREE Coin Machines, a Nationwide NO FEE ATM
Network, and a 5 Way Mortgage Service Promise. It also offers 8-8 Extended
Hours in all of their Florence, Mt. Pleasant, and Lexington locations and is
open on most traditional bank holidays. Its Easy to Do Business With(TM)
standard has earned the young bank a customer satisfaction rating of 98%
(Lamothe & Associates, Inc., Research Firm). First Reliance Bank is traded as
FSRL.OB.
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
Media Contact:
Jeff Paolucci, Senior Vice President Ashleigh Miles, PR &
and CFO Advertising Manager
First Reliance Bank First Reliance Bank
(843) 674-3250 (843) 789-1419
jpaolucci@firstreliance.com amiles@firstreliance.com
First Reliance Bancshares, Inc.
Consolidated Reports of Income
Three Three
Nine Months Nine Months Months Months
Ended Ended Ended Ended
September September September September
30,2008 30,2007 30,200830,2007
(Unaudited) (Unaudited) (Unaudited)(Unaudited)
Interest Income
Loans and Fees 25,895,022 25,745,192 8,234,706 9,234,300
Investment Securities
Taxable 1,025,605 638,647349,641192,571
Tax exempt981,013 552,593325,521199,636
Federal funds sold 54,502 384,420 42,662 48,010
Other interest income 212,941 121,958 98,977 34,078
Total28,169,083 27,442,810 9,051,507 9,708,595
Interest Expense
Time deposits $100,000 and
over 5,524,539 5,062,204 1,491,623 1,909,567
Other deposits5,128,023 7,218,069 1,722,955 2,613,580
Other interest expense2,817,167 1,412,171932,809488,234
Total13,469,729 13,692,444 4,147,387 5,011,381
-
Net Interest Income 14,699,354 13,750,366 4,904,120 4,697,214
Provision for loan losses 1,757,364 869,397609,967408,961
Net Interest Income after
provision 12,941,990 12,880,969 4,294,153 4,288,253
Noninterest Income
Service charges on
deposit accounts 1,477,950 1,394,945548,098486,508
Gain on sale of
mortgage loans 1,445,876 1,635,949319,519519,818
Brokerage fees112,242 124,220 5,685 38,351
Income (Expense) from
Bank Owned Life
Insurance340,376 3,820110,811 (786)
Other charges, commissions
and fees 361,643 259,087123,548 96,299
Gain (Loss) on sale of
securities available for
sale - 4,187 -(16,187)
Gain on sale of other real
estate 700 16,104700 -
Gain on sale of fixed assets7,091 5,996 7,091 -
Other 147,574 437,163 46,705140,557
Total 3,893,452 3,881,471 1,162,157 1,264,560
Noninterest Expense
Salaries and benefits 8,343,153 7,922,140 2,589,777 2,694,710
Occupancy 1,149,437 979,034418,005323,142
Furniture and equipment
related 645,114 607,784222,624188,021
Other operating 3,803,663 4,107,690 1,248,888 1,418,732
Total 13,941,367 13,616,648 4,479,294 4,624,605
Income before tax 2,894,075 3,145,792977,016928,208
Income tax expense 619,353 946,000211,838343,331
Net Income2,274,722 2,199,792765,178584,877
Basic earnings per share 0.650.64 0.22 0.17
Diluted earnings per share 0.630.62 0.21 0.17
First Reliance Bancshares, Inc.
Balance Sheet
September 30 September 30 December 31
2008 2007 2007
(Unaudited) (Unaudited)Audited
Assets:
Cash and Cash Equivalents
Cash and Due From Banks 5,928,325 12,303,9577,164,650
Federal funds sold ---
Total cash and cash equivalents 5,928,325 12,303,9577,164,650
Investment securities
Securities available for sale 56,982,931 34,101,361 58,580,313
Nonmarketable equity securities 3,922,2001,905,4003,930,400
Investment in trust 310,000 310,000-
Total investment securities 61,215,131 36,316,761 62,510,713
Loans held for sale 11,226,9209,008,486 19,600,850
Loans receivable459,686,752 434,389,319 468,137,690
Less allowance for loan losses (6,210,754) (4,736,321) (5,270,607)
Loans, net 453,475,998 429,652,998 462,867,083
Premises, furniture, and equipment,
net 23,770,377 20,828,686 22,233,746
Accrued interest receivable 3,049,3522,648,7673,092,767
Other real estate owned 293,700 134,349 196,950
Cash surrender value life insurance 10,880,649 10,436,829 10,540,273
Other assets 3,833,2303,444,4063,497,180
Total Assets 573,673,682 524,775,239 591,704,212
Liabilities:
Deposits:
Noninterest bearing transaction
accounts 42,917,049 42,917,750 43,542,528
Interest bearing transaction
accounts 27,159,758 53,403,111 39,450,393
Savings 121,475,590 82,138,499 85,819,481
Time deposits $100,000 and over 131,809,645 150,067,645 169,825,252
Other time deposits 124,196,593 112,300,558 110,860,061
Total deposits 447,558,635 440,827,563 449,497,715
Securities sold under agreements to
repurchase 7,195,4148,568,0847,927,754
Federal Funds Purchased 2,170,0003,000,000 13,359,000
Advances from Federal Home Loan
Bank63,500,000 24,000,000 69,000,000
Note Payable 3,000,000 - 3,000,000
Junior subordinated debentures 10,310,000 10,310,000 10,310,000
Accrued interest payable583,346 913,244 767,577
Other liabilities 1,401,244 752,981 814,262
Total Liabilities 535,718,639 488,371,872 554,676,308
Shareholders' Equity:
Common Stock 35,337 34,874 34,946
Restricted Stock (197,635)(147,729)(152,762)
Capital Surplus26,064,686 25,808,044 25,875,012
Treasury Stock (155,259)(145,198)(145,198)
Retained Earnings 13,488,094 11,057,547 11,417,275
Accumulated other comprehensive
income(1,280,180)(204,171) (1,369)
Total Shareholders Equity 37,955,043 36,403,367 37,027,904
Total Liabilities and Shareholders
Equity 573,673,682 524,775,239 591,704,212
SOURCE First Reliance Bancshares, Inc.
