First Reliance Bancshares Reports First Quarter 2021 Results

Rhea-AI Summary

First Reliance Bancshares (OTC:FSRL) reported a strong first quarter in 2021, achieving $1.7 million in net income, up 99.1% year-over-year, translating to $0.21 per diluted share. Total deposits rose 11.3% to $661.2 million, bolstered by significant growth in non-interest accounts. Mortgage banking income soared 344.9% to $3.4 million. The company's asset quality remained robust, with non-performing assets decreasing to 0.17% of total assets. However, net interest income fell 3.7% to $5.6 million, reflecting reduced yields on interest-earning assets.

Positive

• Net income increased by 99.1% to $1.7 million compared to prior year.
• Total deposits rose by $67.2 million (11.3%) to $661.2 million.
• Mortgage banking income surged by 344.9% to $3.4 million.
• Non-performing assets as a percentage of total assets decreased to 0.17%.
• Cost of funds improved to 0.46%, down from 1.08% year-over-year.

Negative

• Net interest income decreased by 3.7% to $5.6 million.
• Yield on interest-earning assets dropped to 3.69% from 4.91% year-over-year.

FLORENCE, S.C., April 23, 2021 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the first quarter of 2021.

First Quarter 2021 Highlights

• Net income for the first quarter of 2021 was $1.7 million, or $0.21 per diluted share, compared to $0.9 million, or $0.11 per diluted share, for the first quarter of 2020, representing an increase of 99.1%.
• Total deposits increased by $67.2 million, or 11.3%, to $661.2 million at March 31, 2021 from $594.0 million at December 31, 2020. Non-interest bearing and interest bearing NOW accounts increased $41.0 million, or 14.2%, to 329.1 million at March 31, 2021 from $288.2 million at December 31, 2020.
• Mortgage volume remained robust and resulted in mortgage banking income of $3.4 million during the first quarter of 2021, an increase of $2.6 million, or 344.9%, from the first quarter of 2020.
• The Company originated 193 loans for $17.4 million as part of the second round of the Paycheck Protection Program ("PPP").
• Asset quality remained strong, with non-performing assets as a percentage of total assets decreasing to 0.17% at March 31, 2021 compared to 0.21% at December 31, 2020.
• Net charge-offs were $5 thousand, or annualized 0.01% of average loans (excluding PPP), for the first quarter of 2021 compared to $50 thousand, or annualized 0.04% of average loans, for the same period in 2020.
• Cost of funds for the first quarter of 2021 decreased to 0.46% from 0.60% on a linked quarter basis and from 1.08% for the same period in 2020.
• The Company repurchased approximately 258,000 shares during the quarter at an average price of $7.80 per share.

Rick Saunders, Chief Executive Officer, remarked on the first quarter results: "First Reliance continued building on the success of 2020 with a strong start to 2021.  Our net income of $1.7 million, or $0.21 per diluted common share, for the quarter represents an increase of 99.1% over the same period last year.  We have made significant investments in both our commercial and mortgage production teams during the quarter, highlighted by the hiring of Justin Strickland, who in January became President of First Reliance Bank.  Justin's hiring represents the completion of our vision to establish an executive leadership team capable of executing our growth plans.  Additionally, against the backdrop of fiscal stimulus, the national vaccination rollout, and improved customer balance sheets, our markets appear poised for significant growth.  In preparation of the reopening of the economy and a steepening yield curve, we have begun to build our loan pipelines and have initiated strategic investment security purchases." 

Mr. Saunders continued, "During the first quarter, we completed the rollout of our new digital banking platform, which allows us to provide robust functionality and an improved user experience for our customer base.  Investments in customer-focused technology positions us for growth by providing solutions that are superior to our community banking peers.  We believe pairing first-in-class customer service with a high-quality digital banking product will make us the preferred choice for customers looking for a local financial institution with 21^st century banking capabilities."

Mr. Saunders concluded, "I want to thank all of our team members for their continued commitment to our customers and for living out our core values every day.  Although these have been challenging times, I couldn't be more excited about the direction this organization is heading and I know that our best times are ahead of us."

Payroll Protection Program

During the quarter, the Company was a participating lender in the second round of the Small Business Administration ("SBA") Payroll Protection Program.  As of March 31, 2021, the Company had originated 193 PPP loans totaling $17.4 million. Origination fees, net of costs, from these loans are approximately $0.7 million. During the quarter, the Company recognized $16 thousand of the $0.7 million in estimated net fees, with the remaining balance expected to be recognized over the next several quarters.

COVID-19 Update

The first quarter continued to bring positive developments in the fight against COVID-19.  Vaccine rollout has continued to accelerate and the additional economic stimulus in the first quarter helped strengthen consumer and business balance sheets.  As of March 31, 2021, total COVID-related loan deferrals were $8.0 million on five loans, all on their second deferral, totaling 1.6% of total loans receivable. 

Financial Summary
	Three Months Ended
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
($ in thousands, except per share data)	2021	2020	2020	2020	2020
Earnings:
Net income available to common shareholders	$      1,708	$      1,389	$      4,468	$      3,901	$         858
Earnings per common share, diluted	0.21	0.17	0.56	0.49	0.11
Total revenue(1)	9,917	10,858	14,820	13,241	7,542
Net interest margin	3.36%	3.27%	3.86%	3.55%	4.09%
Return on average assets(2)	0.93%	0.72%	2.31%	2.12%	0.54%
Return on average equity(2)	9.91%	8.08%	27.73%	26.20%	5.89%
Efficiency ratio(3)	77.35%	80.05%	54.28%	54.40%	81.15%
	As of
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
($ in thousands, except per share data)	2021	2020	2020	2020	2020
Balance Sheet:
Total assets	$        777,735	$        710,168	$        781,655	$        762,647	$        660,886
Total loans receivable	490,326	477,968	478,745	512,384	480,573
Total deposits	661,217	594,000	595,767	582,361	506,225
Total transaction deposits(4)to total deposits	49.78%	48.51%	47.30%	49.62%	49.06%
Loans to deposits	74.16%	80.47%	80.36%	87.98%	94.93%
Bank Capital Ratios:
Total risk-based capital ratio	16.00%	15.67%	14.75%	13.31%	12.45%
Tier 1 risk-based capital ratio	14.87%	14.52%	13.72%	12.48%	11.75%
Tier 1 leverage ratio	11.13%	10.31%	9.96%	9.68%	10.29%
Common equity tier 1 capital ratio	14.87%	14.52%	13.72%	12.48%	11.75%
Asset Quality Ratios:
Nonperforming assets as a percentage of    total assets	0.17%	0.21%	0.19%	0.21%	0.26%
Allowance for loan losses as a percentage of    total loans receivable	1.26%	1.29%	1.20%	0.92%	0.81%
Footnotes to table located at the end of this release.

 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited
	Three Months Ended
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
(in thousands, except per share data)	2021	2020	2020	2020	2020
Interest income
Loans	$         5,851	$         6,156	$         7,403	$         6,650	$         6,568
Investment securities	238	231	218	299	323
Other interest income	60	75	67	41	90
Total interest income	6,149	6,462	7,688	6,990	6,981
Interest expense
Deposits	286	376	519	652	828
Other interest expense	262	388	400	371	336
Total interest expense	548	764	919	1,023	1,164
Net interest income	5,601	5,698	6,769	5,967	5,817
Provision for loan losses	-	350	1,000	1,178	380
Net interest income after provision for loan    losses	5,601	5,348	5,769	4,789	5,437
Noninterest income
Mortgage banking income	3,390	5,014	7,115	6,633	762
Service fees on deposit accounts	279	315	290	242	463
Debit card and other service charges,    commissions, and fees	454	427	426	429	315
Income from bank owned life insurance	93	101	103	102	103
Gain (loss) on sale of securities, net	-	8	-	(211)	(9)
Loss on extinguishment of debt	-	(287)	-	-	-
Loss on disposal of fixed assets	-	(528)	-	-	-
Other income	100	110	117	79	91
Total noninterest income	4,316	5,160	8,051	7,274	1,725
Noninterest expense
Compensation and benefits	4,992	5,359	4,892	4,395	3,583
Occupancy	597	641	628	619	612
Furniture and equipment	450	616	572	585	537
Electronic data processing	277	241	231	200	194
Professional fees	238	400	230	329	267
Marketing	69	155	122	56	77
Other	1,048	1,280	1,288	771	778
Total noninterest expense	7,671	8,692	7,963	6,955	6,048
Income before provision for income taxes	2,246	1,816	5,857	5,108	1,114
Income tax expense	538	427	1,389	1,207	256
Net income available to common shareholders	$         1,708	$         1,389	$         4,468	$         3,901	$            858
Weighted average common shares - basic	7,780	7,931	7,929	7,915	7,901
Weighted average common shares - diluted	8,168	8,089	8,015	7,998	8,014
Basic income per common share	$           0.22	$           0.18	$           0.56	$           0.49	$           0.11
Diluted income per common share	$           0.21	$           0.17	$           0.56	$           0.49	$           0.11

Net income for the three months ended March 31, 2021 was $1.7 million, or $0.21 per diluted common share, compared to $0.9 million, or $0.11 per diluted common share, for the three months ended March 31, 2020.  

Noninterest income for the three months ended March 31, 2021 was $4.3 million, a $2.6 million increase from $1.7 million for the same period in 2020.  Noninterest income is largely driven by the Company's mortgage banking division, which produced income of $3.4 million on $162 million in mortgage volume during the three months ended March 31, 2021.  That represents an increase of $2.6 million in income from the same period in 2020.  However, mortgage banking income was negatively affected during the current quarter by a decrease of $1.0 million in the valuation of mortgage banking derivatives, which includes the valuation of our mortgage pipeline as well as associated hedges.

Noninterest expense for the three months ended March 31, 2021 was $7.7 million, a $1.6 million increase from $6.1 million for the same period in 2020.  The increase in noninterest expense is largely driven by an increase of $1.4 million in compensation and benefits.  The increase in compensation and benefits is driven by an increase in mortgage incentives as well as continued additions to banking personnel throughout the year.

NET INTEREST INCOME AND MARGIN – Unaudited
	For the Three Months Ended
	March 31, 2021				March 31, 2020
	Average	Income/	Yield/		Average	Income/	Yield/
(dollars in thousands)	Balance	Expense	Rate		Balance	Expense	Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits	$     104,580	$              30	0.12%		$        19,487	$            57	1.17%
Investment securities	39,203	238	2.43%		45,175	323	2.86%
Nonmarketable equity securities	1,055	30	11.31%		2,119	33	6.15%
Loans held for sale	38,273	265	2.76%		19,682	201	4.08%
Loans	483,472	5,586	4.62%		481,825	6,367	5.29%
Total interest-earning assets	666,583	6,149	3.69%		568,288	6,981	4.91%
Allowance for loan losses	(6,318)				(3,584)
Noninterest-earning assets	73,217				73,621
Total assets	$     733,482				$      638,325
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$     123,316	$              13	0.04%		$        95,462	$            11	0.05%
Savings & money market	174,429	74	0.17%		119,672	116	0.39%
Time deposits	140,921	199	0.56%		148,721	701	1.89%
Total interest-bearing deposits	438,666	286	0.26%		363,855	828	0.91%
FHLB advances and other borrowings	16,118	46	1.13%		50,935	252	1.98%
Subordinated debentures	20,786	216	4.16%		15,309	84	2.20%
Total interest-bearing liabilities	475,570	548	0.46%		430,099	1,164	1.08%
Noninterest bearing deposits	178,456				140,338
Other liabilities	10,543				9,603
Shareholders' equity	68,913				58,285
Total liabilities and shareholders' equity	$     733,482				$      638,325
Net interest income (tax equivalent) / interest   rate spread		$         5,601	3.23%			$       5,817	3.83%
Net Interest Margin			3.36%				4.09%

Net interest income decreased $216 thousand, or 3.7%, to $5.6 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020.  The decrease in net interest income over the period was caused by a decrease in the yield on interest-earning assets.   Yield on interest-earning assets decreased to 3.69% for the three months ended March 31, 2021 from 4.91% for three months ended March 31, 2020.  The decrease was driven by both a change in balance sheet mix and an overall decrease in interest rates stemming from decreases in the federal funds target rate during 2020.  The Company continues to reduce its cost of funds, which decreased to 0.46% for the three months ended March 31, 2021 from 1.08% for the same period in 2020.  Average transaction deposits increased by $66.0 million, to $301.8 million for the three months ended March 31, 2021 from $235.8 million for the three months ended March 31, 2020 and were aided in part by deposit growth as a result of fiscal stimulus. 

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited
	As of
	Mar 31	Dec 31	Sept 30	Jun 30	March 31
($ in thousands, except per share data)	2021	2020	2020	2020	2020
Assets
Cash and cash equivalents:
Cash and due from banks	$                5,547	$                5,521	$                5,133	$                4,952	$              16,869
Interest-bearing deposits with banks	115,577	93,167	134,592	78,299	18,667
Total cash and cash equivalents	121,124	98,688	139,725	83,251	35,536
Time deposits in other banks	256	256	256	255	255
Investment securities:
Investment securities available for sale	54,413	32,759	35,567	28,237	34,842
Investment securities held to maturity	-	-	-	9,318	9,767
Other investments	837	1,076	3,839	4,264	2,989
Total investment securities	55,250	33,835	39,406	41,819	47,598
Mortgage loans held for sale	48,912	35,642	57,853	57,329	34,042
Loans receivable:
Loans	490,326	477,968	478,745	512,384	480,573
Less allowance for loan losses	(6,168)	(6,173)	(5,721)	(4,715)	(3,877)
Loans receivable, net	484,158	471,795	473,024	507,669	476,696
Property and equipment, net	18,465	18,491	20,548	20,523	20,528
Mortgage servicing rights	13,353	12,021	11,000	9,698	8,421
Bank owned life insurance	18,195	18,102	18,001	17,898	17,796
Deferred income taxes	3,234	3,452	3,872	5,068	6,156
Other assets	14,788	17,886	17,970	19,137	13,858
Total assets	777,735	710,168	781,655	762,647	660,886
Liabilities
Deposits	$            661,217	$            594,000	$            595,767	$            582,361	$            506,225
Federal Home Loan Bank advances	10,000	10,000	75,000	85,000	55,000
Federal funds and repurchase agreements	6,955	5,523	12,591	2,464	16,530
Subordinated debentures	10,487	10,459	10,427	10,358	4,835
Junior subordinated debentures	10,310	10,310	10,310	10,310	10,310
Other liabilities	10,548	11,147	10,178	9,814	9,971
Total liabilities	709,517	641,439	714,273	700,307	602,871
Shareholders' equity
Preferred stock - Series D non-cumulative, no par   value	1	1	1	1	1
Common Stock - $.01 par value; 20,000,000 shares   authorized	88	82	81	81	81
Non-Voting Common Stock, $.01 par value;   430,000 shares authorized	-	4	4	4	4
Treasury stock, at cost	(3,744)	(1,680)	(1,488)	(1,478)	(1,402)
Nonvested restricted stock	(2,868)	(1,487)	(1,577)	(1,748)	(1,757)
Additional paid-in capital	53,617	51,972	51,824	51,822	51,652
Retained earnings	20,417	18,709	17,320	12,852	8,830
Accumulated other comprehensive income	707	1,128	1,217	806	606
Total shareholders' equity	68,218	68,729	67,382	62,340	58,015
Total liabilities and shareholders' equity	$            777,735	$            710,168	$            781,655	$            762,647	$            660,886

 

COMMON STOCK SUMMARY - Unaudited
			As of
	Mar 31	Dec 31	Sept 30	Jun 30	Mar 31
(shares in thousands)	2021	2020	2020	2020	2020
Voting common shares outstanding	8,784	8,154	8,129	8,133	8,103
Non-voting common shares outstanding	-	410	410	410	410
Treasury shares outstanding	(481)	(234)	(202)	(200)	(187)
Total common shares outstanding	8,303	8,330	8,337	8,343	8,326
Tangible book value per common share(5)	$                  8.09	$                  8.12	$                  7.95	$                  7.34	$                  6.83
Stock price:
High	$                10.00	$                  7.80	$                  6.05	$                  5.50	$                  7.82
Low	$                  7.46	$                  5.55	$                  4.85	$                  4.93	$                  5.50
Period end	$                  9.90	$                  7.75	$                  6.05	$                  5.07	$                  5.50

 

ASSET QUALITY MEASURES – Unaudited
	Ending Balance
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
(dollars in thousands)	2021	2020	2020	2020	2020
Nonperforming Assets
Commercial
Owner occupied RE	$                  385	$                  394	$                  404	$                   413	$                    416
Non-owner occupied RE	-	-	-	-	-
Construction	-	-	-	-	-
Commercial business	-	-	-	135	12
Consumer
Real estate	344	461	346	345	356
Home equity	-	-	-	-	-
Construction	-	-	-	-	-
Other	164	242	299	206	246
Nonaccruing troubled debt restructurings	252	270	291	318	298
Total nonaccrual loans	$               1,145	$               1,367	$               1,340	$                1,417	$                 1,328
Other real estate owned	150	164	164	209	392
Total nonperforming assets	$               1,295	$               1,531	$               1,504	$                1,626	$                 1,720
Nonperforming assets as a percentage of:
Total assets	0.17%	0.21%	0.19%	0.21%	0.26%
Total loans receivable	0.26%	0.32%	0.31%	0.32%	0.36%
Accruing troubled debt restructurings	$               1,544	$               1,584	$               2,508	$                2,620	$                 3,502
	Quarter Ended
	Mar 31	Dec 31	Sept 30	June 30	March 31
(dollars in thousands)	2021	2020	2020	2020	2020
Allowance for Loan Losses
Balance, beginning of period	$               6,173	$               5,721	$               4,715	$                3,877	$                 3,547
Loans charged-off	55	43	76	452	168
Recoveries of loans previously charged-off	50	145	82	112	118
Net charge-offs (recoveries)	5	(102)	(6)	340	50
Provision for loan losses	-	350	1,000	1,178	380
Balance, end of period	$               6,168	$               6,173	$               5,721	$                4,715	$                 3,877
Allowance for loan losses to gross loans receivable	1.26%	1.29%	1.20%	0.92%	0.81%
Allowance for loan losses to nonaccrual loans	538.69%	451.57%	426.94%	332.75%	291.94%
Footnotes to table located at the end of this release.

Our asset quality continued to be strong through March 31, 2021, with nonperforming assets decreasing to $1.3 million at March 31, 2021 from $1.5 million at December 31, 2020.  The ratio of nonperforming assets to total assets declined to 0.17% at March 31, 2021, a decrease of 4 basis points compared to December 31, 2020.  Other real estate owned and repossessed assets remain nominal.  The allowance for loan losses as a percentage of total loans receivable decreased slightly to 1.26% at March 31, 2021, compared to 1.29% at December 31, 2020.  The Company had net charge-offs of $5 thousand for the three months ended March 31, 2021 compared to net recoveries of $102 thousand for the three months ended December 31, 2020.

LOAN COMPOSITION – Unaudited
	Quarter Ended
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
(dollars in thousands)	2021	2020	2020	2020	2020
Commercial
Owner occupied RE	$             106,354	$             106,721	$             104,173	$             113,205	$             115,711
Non-owner occupied RE	84,837	88,560	79,838	70,748	69,474
Construction	23,364	29,099	35,579	35,029	29,523
Business	63,748	57,512	63,163	62,464	63,522
PPP	17,374	-	-	30,211	-
Total commercial loans	295,677	281,892	282,753	311,657	278,230
Consumer
Real Estate	95,849	96,458	97,904	99,565	97,465
Home equity	17,645	19,456	20,244	21,895	21,362
Construction	13,328	13,892	12,831	11,642	9,617
Other	67,827	66,270	65,013	67,625	73,899
Total consumer loans	194,649	196,076	195,992	200,727	202,343
Total loans, net of deferred fees	490,326	477,968	478,745	512,384	480,573
Less allowance for loan losses	6,168	6,173	5,721	4,715	3,877
Total loans, net	$             484,158	$             471,795	$             473,024	$             507,669	476,696

 

DEPOSIT COMPOSITION – Unaudited
	Quarter Ended
	Mar 31	Dec 31	Sept 30	June 30	Mar 31
(dollars in thousands)	2021	2020	2020	2020	2020
Non-interest bearing	$         197,831	$         167,274	$         173,628	$         185,208	$         144,359
Interest bearing:
NOW accounts	131,304	120,891	108,152	103,732	104,003
Money market accounts	137,913	119,716	113,203	101,083	94,778
Savings	52,085	46,688	41,549	34,392	26,270
Time, less than $250,000	109,295	105,327	122,139	120,782	104,841
Time, $250,000 and over	32,789	34,104	37,096	37,164	31,974
Total deposits	$         661,217	$         594,000	$         595,767	$         582,361	506,225

 

Footnotes to tables:
(1)	Total revenue is the sum of net interest income and noninterest income.
(2)	Annualized for the respective three-month period.
(3)	Noninterest expense divided by the sum of net interest income and noninterest income annualized for respective three-month period.
(4)	Includes noninterest-bearing and interest-bearing NOW accounts.
(5)	The tangible book value per share is calculated as total shareholders' equity less intangible assets, divided by period-end outstanding common shares.

ABOUT FIRST RELIANCE

Founded in 1999, First Reliance Bancshares, Inc. (OTC: FSRL.OB), is based in Florence, South Carolina and has assets of approximately $778 million.  The Company employs more than 170 professionals and has locations throughout South Carolina and central North Carolina.  First Reliance has redefined community banking with a commitment to making customers lives better, its founding principle.  Customers of the company have given it a 93% customer satisfaction rating well above the bank industry average of 81%.  First Reliance is also one of three companies throughout South Carolina to receive the Best Places To Work in South Carolina award all 15 years since the program began.  We believe that this recognition confirms that our associates are engaged and committed to our brand and the communities we serve.  In addition to offering a full range of personalized community banking products and services for individuals, small businesses, and corporations, First Reliance offers two unique community-customers programs, which include:  Hometown Heroes, a package of benefits for those serving our communities and Check N Save, an outreach program for the unbanked or under-banked.  We also offer a full suite of digital banking services, a Customer Service Guaranty, a Mortgage Service Guaranty, and are open on most traditional holidays.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective.  Such forward-looking statements include, but are not limited to, statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions.  Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate.  Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized.  The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:  (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in the U.S. legal and regulatory framework including, but not limited to, the Dodd-Frank Act and regulations adopted thereunder; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the Company, including the value of its MSR asset; (7) the business related to acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; (8) the expected cost savings and any revenue synergies from acquisitions may not be fully realized within expected timeframes; and (9) disruption from acquisitions may make it more difficult to maintain relationships with clients, associates or suppliers.  Moreover, a trade war or other governmental action related to tariffs or international trade agreements or policies, as well as Covid-19 or other potential epidemics or pandemics, have the potential to negatively impact ours and/or our customers' costs, demand for our customers' products, and/or the U.S. economy or certain sectors thereof and, thus, adversely affect our business, financial condition, and results of operations.  All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.  We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact:
Robert Haile
SEVP & Chief Financial Officer
(843) 656-5000
rhaile@firstreliance.com

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SOURCE First Reliance Bancshares

FAQ

What were the financial results for First Reliance Bancshares in Q1 2021?

First Reliance Bancshares reported a net income of $1.7 million for Q1 2021, a 99.1% increase from the previous year.

How much did deposits increase for First Reliance Bancshares in Q1 2021?

Total deposits rose by $67.2 million, or 11.3%, totaling $661.2 million at the end of Q1 2021.

What was the mortgage banking income for First Reliance Bancshares in Q1 2021?

Mortgage banking income increased significantly to $3.4 million, a 344.9% rise from Q1 2020.

What was the non-performing assets percentage for First Reliance Bancshares in Q1 2021?

Non-performing assets decreased to 0.17% of total assets as of March 31, 2021.

Did First Reliance Bancshares face any challenges in Q1 2021?

Yes, net interest income fell by 3.7% to $5.6 million due to reduced yields on interest-earning assets.