First Reliance Bancshares Reports First Quarter 2024 Results

Rhea-AI Summary

First Reliance Bancshares, Inc. reported a decrease in net income by 9.7% for the first quarter of 2024 compared to the same period in 2023. Despite this, total loans and deposits saw significant growth. Asset quality remained strong with a low percentage of nonperforming assets. The company's capital ratios and book value per share also showed positive trends.

Positive

• Net income decreased by 9.7% to $1.2 million for Q1 2024 compared to Q1 2023.
• Net interest income slightly decreased to $7.2 million for Q1 2024.
• Total loans increased by $19.6 million to $725.2 million at the end of Q1 2024.
• Total deposits increased by $22.7 million to $881.3 million by the end of Q1 2024.
• Asset quality remained strong with nonperforming assets at 0.03% of total assets.
• Book value per share increased to $8.86 at the end of Q1 2024.
• The company's total capital ratio equaled 13.46% at the bank level.

Negative

• Net income saw a decline of 9.7% compared to the previous year.
• Net interest income decreased slightly for Q1 2024.
• Cost of funds increased to 2.25% for Q1 2024.
• The net charge-offs for the first quarter of 2024 were $113.0 thousand.
• Efficiency ratio for Q1 2024 was 81.04%.
• The provision for credit losses increased by $217 thousand in Q1 2024.

FLORENCE, S.C., April 25, 2024 /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 2024.

First Quarter 2024 Highlights

• Net income decreased 9.7% for the first quarter of 2024 to $1.2 million, or $0.15 per diluted share, compared to $1.4 million, or $0.17 per diluted share, for the first quarter of 2023.
• Net interest income for the quarter was $7.2 million, which represents a decrease of $64,800, or 0.9%, on a linked quarter basis and a decrease of $66,600, or 0.9% compared to the same period in 2023.
• Net interest margin decreased during the quarter to 3.11% at March 31, 2024, compared to 3.16% for the fourth quarter of 2023, and decreased 23 basis points compared to the same period in 2023.
• Total loans increased $19.6 million, or 11.1% annualized, to $725.2 million at March 31, 2024, from $705.7 million at December 31, 2023.
• Total deposits increased $22.7 million, or 10.6% annualized, to $881.3 million at March 31, 2024, from $858.6 million at December 31, 2023.
• Asset quality remained strong with nonperforming assets as a percentage of total assets of 0.03% at March 31, 2024, down from 0.04% at December 31, 2023. The Company had net charge-offs of $113.0 thousand, or annualized 0.06% of average loans, during the first quarter of 2024, compared to net recoveries of $1.3 thousand, or annualized 0.00% of average loans, for the fourth quarter of 2023.
• Cost of funds for the first quarter of 2024 increased to 2.25% from 2.03% on a linked quarter basis and from 1.24% for the same period in 2023.
• Book value per share increased $0.72 from $8.14 per share at March 31, 2023, to $8.86 per share at March 31, 2024.

Rick Saunders, Chief Executive Officer, stated: "The first quarter of 2024 saw our total assets exceed $1.0 billion, which we expect to continue to grow going forward. Loan growth exceeded 11% annualized while deposit growth was 10.6% annualized. The Company's capital ratios remain strong as our total capital ratio equaled 13.46% at the bank level. In addition, tangible book value per share increased by $0.73 per share, or 9.08%, to $8.77 over the past twelve months. Credit quality remains strong with low net charge offs and nonperforming assets. Our team continues to put clients first while establishing strong long-term relationships in the communities we serve."

Financial Summary
		Three Months Ended
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands, except per share data)	2024	2023	2023	2023	2023
Earnings:
Net income available to common shareholders	$     1,238	$          776	$     1,444	$     1,013	$     1,371
Earnings per common share, diluted	0.15	0.10	0.18	0.12	0.17
Total revenue(1)	9,690	8,285	9,219	8,959	9,430
Net interest margin	3.11 %	3.16 %	3.11 %	3.16 %	3.34 %
Return on average assets(2)	0.49 %	0.32 %	0.58 %	0.41 %	0.57 %
Return on average equity(2)	7.01 %	4.70 %	8.68 %	6.13 %	8.53 %
Efficiency ratio(3)	81.04 %	89.83 %	80.35 %	82.50 %	79.20 %

 

	As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Balance Sheet:
Total assets	$  1,027,616	$       974,157	$       991,721	$       992,596	$  1,000,535
Total loans receivable	725,234	705,672	706,596	694,130	669,969
Total deposits	881,309	858,597	861,229	830,085	836,902
Total transaction deposits(4) to total deposits	39.86 %	41.31 %	43.55 %	44.00 %	46.46 %
Loans to deposits	82.29 %	82.19 %	82.05 %	83.62 %	80.05 %
Bank Capital Ratios:
Total risk-based capital ratio	13.46 %	13.86 %	13.54 %	13.57 %	13.45 %
Tier 1 risk-based capital ratio	12.37 %	12.75 %	12.43 %	12.43 %	12.41 %
Tier 1 leverage ratio	10.16 %	10.32 %	10.11 %	9.95 %	10.14 %
Common equity tier 1 capital ratio	12.37 %	12.75 %	12.43 %	12.43 %	12.41 %
Asset Quality Ratios:
Nonperforming assets as a percentage of    total assets	0.03 %	0.03 %	0.05 %	0.05 %	0.05 %
Allowance for credit losses as a percentage of    total loans receivable	1.17 %	1.19 %	1.19 %	1.19 %	1.20 %
Net charge-offs as a percentage of average total loans receivable	0.06 %	0.00 %	0.01 %	0.07 %	0.06 %
Footnotes to table located at the end of this release.

 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited
		Three Months Ended
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands, except per share data)	2024	2023	2023	2023	2023
Interest income
Loans	$     10,085	$        9,678	$        9,394	$        8,837	$        8,260
Investment securities	1,972	1,832	1,596	1,371	1,343
Other interest income	291	396	536	782	362
Total interest income	12,348	11,906	11,526	10,990	9,965
Interest expense
Deposits	4,332	4,076	3,671	2,876	1,922
Other interest expense	808	558	651	893	769
Total interest expense	5,140	4,634	4,322	3,769	2,691
Net interest income	7,208	7,272	7,204	7,221	7,274
Provision for credit losses	207	(118)	(42)	280	248
Net interest income after provision for loan    losses	7,001	7,390	7,246	6,941	7,026
Noninterest income
Mortgage banking income	1,375	694	1,147	1,063	916
Service fees on deposit accounts	336	336	371	341	326
Debit card and other service charges,    commissions, and fees	519	544	537	563	517
Income from bank owned life insurance	102	99	95	91	244
Loss on sale of securities, net	-	(802)	(268)	(455)	-
Gain on disposal of fixed assets	20	11	-	-	19
Other income	130	132	132	134	134
Total noninterest income	2,482	1,014	2,014	1,737	2,156
Noninterest expense
Compensation and benefits	4,878	4,558	4,603	4,461	4,652
Occupancy and equipment	841	798	882	856	892
Data processing, technology, and communications	1,039	985	923	942	771
Professional fees	110	56	58	111	196
Marketing	160	104	151	206	226
Other	826	942	790	815	732
Total noninterest expense	7,854	7,443	7,407	7,391	7,469
Income before provision for income taxes	1,629	961	1,853	1,287	1,713
Income tax expense	391	185	409	274	342
Net income available to common shareholders	$        1,238	$             776	$        1,444	$        1,013	$        1,371
Addback securities losses, net of tax	-	648	355	211	-
Adjusted net income (nonGAAP)	1,238	1,424	1,799	1,224	1,371
Weighted average common shares - basic	7,837	7,826	7,834	7,825	7,807
Weighted average common shares - diluted	8,217	8,164	8,149	8,142	8,189
Basic income per common share	$           0.16	$           0.10	$           0.18	$           0.13	$           0.18
Diluted income per common share	$           0.15	$           0.10	$           0.18	$           0.12	$           0.17
Adjusted basic net income per common share (nonGAAP)	$           0.16	$           0.18	$           0.23	$           0.16	$           0.18
Adjusted diluted net income per common share (nonGAAP)	$           0.15	$           0.17	$           0.22	$           0.15	$           0.17

Net income for the three months ended March 31, 2024, was $1.2 million, or $0.15 per diluted common share, compared to $1.4 million, or $0.17 per diluted common share, for the three months ended March 31, 2023.

Noninterest income for the three months ended March 31, 2024, was $2.5 million, an increase of $0.3 million from $2.2 million for the same period in 2023. Noninterest income was primarily driven by the Company's mortgage banking division, which produced net revenue of $1.4 million during the three months ended March 31, 2024, compared to $0.9 million for the same period in 2023. The increase in mortgage noninterest income is primarily due to higher sales volume compared to the first quarter of 2023. Additionally, the Bank's mortgage servicing right asset increased due to increases in mortgage rates the first quarter of 2024. Income from bank owned life insurance decreased $142 thousand compared to the first quarter of 2023 due to the receipt of a death benefit during the first quarter of 2023.

Noninterest expense for the three months ended March 31, 2024, was $7.9 million, an increase of $0.4 million from $7.5 million for the same period in 2023. This was primarily driven by an increase in compensation and benefits of $225.4 thousand due primarily to mortgage commissions and an increase in data processing and technology of $268.0 thousand. These increases were offset by declines in occupancy, professional fees, and marketing of $203.0 thousand, collectively, compared to first quarter 2023. 

NET INTEREST INCOME AND MARGIN – Unaudited
	For the  Three Months Ended
	March 31, 2024				March 31, 2023
	Average	Income/	Yield/		Average	Income/	Yield/
($ in thousands)	Balance	Expense	Rate		Balance	Expense	Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits	$          27,557	$              266	3.88 %		$       40,162	$           349	3.53 %
Investment securities	169,174	1,972	4.69 %		163,024	1,343	3.34 %
Nonmarketable equity securities	2,224	25	4.56 %		2,013	13	2.65 %
Loans held for sale	15,639	254	6.53 %		9,675	155	6.51 %
Loans	716,237	9,831	5.52 %		668,741	8,105	4.91 %
Total interest-earning assets	930,831	12,348	5.34 %		883,615	9,965	4.57 %
Allowance for credit losses	(8,401)				(7,837)
Noninterest-earning assets	79,678				78,697
Total assets	$     1,002,108				$     954,475
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$        142,303	$              291	0.82 %		$     141,342	$           105	0.30 %
Savings & money market	341,680	2,445	2.88 %		302,198	1,417	1.90 %
Time deposits	174,169	1,596	3.69 %		109,959	400	1.47 %
Total interest-bearing deposits	658,152	4,332	2.65 %		553,499	1,922	1.41 %
FHLB advances and other borrowings	31,665	437	5.55 %		44,435	430	3.93 %
Subordinated debentures	25,727	371	5.81 %		25,695	339	5.34 %
Total interest-bearing liabilities	715,544	5,140	2.89 %		623,629	2,691	1.75 %
Noninterest bearing deposits	202,136				253,263
Other liabilities	13,768				13,313
Shareholders' equity	70,660				64,270
Total liabilities and shareholders' equity	$     1,002,108				$     954,475
Net interest income (tax equivalent) / interest   rate spread		$           7,208	2.45 %			$        7,274	2.82 %
Net Interest Margin			3.11 %				3.34 %
Cost of funds, including noninterest-bearing deposits			2.25 %				1.24 %

Net interest income for the three months ended March 31, 2024, was $7.2 million compared to $7.3 million for the three months ended March 31, 2023. This slight decrease was the result of deposit cost increasing by $2.4 million offset by interest income increasing by $2.4 million, resulting in $67 thousand net decrease. Yield on interest-earning assets increased to 5.34% for the three months ended March 31, 2024, from 4.57% for the same period in 2023. Yield on interest-bearing liabilities increased to 2.89% in the first quarter of 2024, up from 1.75% in the first quarter of 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited
	As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Assets
Cash and cash equivalents:
Cash and due from banks	$                    5,482	$             4,354	$                 3,158	$                 3,748	$                 4,233
Interest-bearing deposits with banks	36,173	17,590	32,835	55,496	71,590
Total cash and cash equivalents	41,655	21,944	35,993	59,244	75,823
Investment securities:
Investment securities available for sale	171,075	171,400	162,573	158,143	164,150
Other investments	2,548	1,078	2,025	2,563	2,570
Total investment securities	173,623	172,478	164,598	160,706	166,720
Mortgage loans held for sale	18,307	7,156	17,506	12,485	16,236
Loans receivable:
Loans	725,234	705,672	706,596	694,130	669,969
Less allowance for credit losses	(8,497)	(8,393)	(8,430)	(8,229)	(8,052)
Loans receivable, net	716,737	697,279	698,166	685,901	661,917
Property and equipment, net	22,185	22,298	22,505	22,588	22,634
Mortgage servicing rights	12,226	11,638	11,394	10,893	10,491
Bank owned life insurance	18,293	18,191	18,092	17,997	17,906
Deferred income taxes	7,990	7,775	9,184	8,534	8,263
Other assets	16,600	15,398	14,283	14,248	20,545
Total assets	1,027,616	974,157	991,721	992,596	1,000,535
Liabilities
Deposits	$                881,309	$         858,597	$             861,229	$             830,085	$             836,902
Federal Home Loan Bank advances	35,000	5,000	25,000	45,000	45,000
Federal funds and repurchase agreements	-	307	81	11,910	12,974
Subordinated debentures	15,421	15,413	15,405	15,397	15,389
Junior subordinated debentures	10,310	10,310	10,310	10,310	10,310
Reserve for unfunded commitments	398	407	488	740	754
Other liabilities	13,070	12,727	13,186	12,616	12,743
Total liabilities	955,508	902,761	925,699	926,058	934,072
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	88	88	88	88
Treasury stock, at cost	(4,965)	(4,821)	(4,750)	(4,666)	(4,598)
Nonvested restricted stock	(2,900)	(2,518)	(2,387)	(2,542)	(2,765)
Additional paid-in capital	56,134	55,471	55,068	54,972	54,984
Retained earnings	34,986	33,748	32,972	31,626	30,564
Accumulated other comprehensive (loss) income	(11,236)	(10,573)	(14,970)	(12,941)	(11,811)
Total shareholders' equity	72,108	71,396	66,022	66,538	66,463
Total liabilities and shareholders' equity	$             1,027,616	$         974,157	$             991,721	$             992,596	$          1,000,535

First Reliance cash and cash equivalents totaled $41.7 million at March 31, 2024, compared to $21.9 million at December 31, 2023. Cash with the Federal Reserve Bank totaled $36.0 million compared to $17.1 million at December 31, 2023.

First Reliance does not have any Held-to-Maturity (HTM) securities for any reported period. All debt securities were classified as Available-For-Sale (AFS) securities with balances of $171.1 million and $171.4 million, at March 31, 2024 and December 31, 2023, respectively. The unrealized loss recorded on these securities totaled $14.9 million as of March 31, 2024, compared to $14.0 million at December 31, 2023, an increase in the first quarter of $0.9 million unrealized loss (before taxes).

As of March 31, 2024, deposits increased by $22.7 million or 10.6% annualized. The deposit growth was in money market accounts, time deposits less than $250,000 accounts, and noninterest bearing deposit accounts (see table on page 8 for detail).

The Company had $35.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at March 31, 2024, up from $5.0 million at December 31, 2023. The Company had remaining credit availability in excess of $236.5 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to more than $35.1 million through the Federal Reserve Bank discount window with posted collateral. There are currently no borrowings against the Federal Reserve Bank discount window.

COMMON STOCK SUMMARY - Unaudited
			As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
(shares in thousands)	2024	2023	2023	2023	2023
Voting common shares outstanding	8,785	8,772	8,754	8,752	8,763
Treasury shares outstanding	(649)	(633)	(623)	(612)	(601)
Total common shares outstanding	8,136	8,139	8,131	8,140	8,162
Book value per common share	$                     8.86	$                     8.77	$                     8.12	$                     8.17	$                     8.14
Tangible book value per common share(5)	$                     8.77	$                     8.68	$                     8.02	$                     8.08	$                     8.04
Stock price:
High	$                     8.65	$                     9.00	$                     7.40	$                     8.80	$                     8.80
Low	$                     7.70	$                     6.91	$                     6.30	$                     6.00	$                     6.50
Period end	$                     8.15	$                     8.57	$                     7.20	$                     6.37	$                     7.44

 

ASSET QUALITY MEASURES – Unaudited
	As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Nonperforming Assets
Commercial
Owner occupied RE	$                          -	$                          -	$                          -	$                          -	$                          80
Non-owner occupied RE	-	86	86	82	-
Construction	-	-	-	-	-
Commercial business	12	99	164	159	278
Consumer
Real estate	48	-	-	-	-
Home equity	-	-	145	145	-
Construction	-	-	-	-	-
Other	52	8	14	94	65
Nonaccruing loan modifications	56	56	65	65	71
Total nonaccrual loans	$                     168	$                     249	$                     474	$                     545	$                        494
Other assets repossessed	114	47	45	-	-
Total nonperforming assets	$                     282	$                     296	$                     519	$                     545	$                        494
Nonperforming assets as a percentage of:
Total assets	0.03 %	0.03 %	0.05 %	0.05 %	0.05 %
Total loans receivable	0.04 %	0.04 %	0.07 %	0.08 %	0.07 %
Accruing loan modifications	$                     970	$                     947	$                  1,027	$                  1,059	$                     1,381
	Three Months Ended
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Allowance for Credit Losses
Balance, beginning of period	$                  8,393	$                  8,430	$                  8,229	$                  8,052	$                     7,660
CECL adoption	-	-	-	-	114
Loans charged-off	195	108	41	145	125
Recoveries of loans previously charged-off	82	109	31	28	23
Net charge-offs (recoveries)	113	(1)	10	117	102
Provision for credit losses	217	(38)	211	294	380
Balance, end of period	$                  8,497	$                  8,393	$                  8,430	$                  8,229	$                     8,052
Allowance for credit losses to gross loans receivable	1.17 %	1.19 %	1.19 %	1.19 %	1.20 %
Allowance for credit losses to nonaccrual loans	5057.74 %	3370.68 %	1778.48 %	1509.91 %	1629.96 %
Footnotes to table located at the end of this release.

Asset quality remained strong through March 31, 2024, with nonperforming assets remaining at $0.3 million, which represents 0.03% of total assets. The allowance for credit losses as a percentage of total loans receivable decreased to 1.17% at March 31, 2024, compared to 1.19% at December 31, 2023. The allowance for credit losses was increased by a provision for credit losses of $217 thousand offset by net charge-offs of $113 thousand, during the first quarter of 2024. In the first quarter of 2023, the Company experienced net charge-offs of $102 thousand, and increased the ACL with a provision for credit losses of $380 thousand. The ACL was 1.20% of total loans at March 31, 2023. 

LOAN COMPOSITION – Unaudited
	As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Commercial real estate	$             434,743	$             433,687	$             430,825	$             415,616	$             401,534
Consumer real estate	184,969	177,102	172,702	168,227	156,562
Commercial and industrial	77,023	63,946	67,740	71,345	71,350
Consumer and other	28,499	30,937	35,329	38,942	40,523
Total loans, net of deferred fees	725,234	705,672	706,596	694,130	669,969
Less allowance for credit losses	8,497	8,393	8,430	8,229	8,052
Total loans, net	$             716,737	$             697,279	$             698,166	$             685,901	$             661,917

 

DEPOSIT COMPOSITION – Unaudited
	As of
	Mar 31	Dec 31	Sep 30	Jun 30	Mar 31
($ in thousands)	2024	2023	2023	2023	2023
Noninterest-bearing	$        212,083	$        210,604	$        231,672	$        230,153	$        249,688
Interest-bearing:
DDA and NOW accounts	139,229	144,039	143,393	135,071	139,130
Money market accounts	307,696	289,158	281,325	264,130	265,264
Savings	44,191	45,558	47,422	51,029	54,247
Time, less than $250,000	125,248	121,035	117,989	113,536	97,223
Time, $250,000 and over	52,862	48,203	39,428	36,166	31,350
Total deposits	$        881,309	$        858,597	$        861,229	$        830,085	$        836,902

 

Footnotes to tables:
(1)	Total revenue is the sum of net interest income and noninterest income.
(2)	Annualized for the respective period.
(3)	Noninterest expense divided by the sum of net interest income and noninterest income.
(4)	Includes noninterest-bearing and interest-bearing DDA and 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 $1.028 billion. The company employs approximately 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 two companies throughout South Carolina to receive the Best Places to Work in South Carolina award all 17 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. The company offers a full range of personalized community banking products and services for individuals, small businesses, and corporations. The company also offers a full suite of digital banking services, Treasury Services, a Customer Service Guaranty, a Mortgage Service Guaranty, and First Reliance Wealth Strategies.

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 credit losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit 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, Inc.

FAQ

What was the net income for First Reliance Bancshares in Q1 2024?

The net income for Q1 2024 was $1.2 million.

How did total loans change in Q1 2024 for First Reliance Bancshares?

Total loans increased by $19.6 million to $725.2 million at the end of Q1 2024.

What was the asset quality like for First Reliance Bancshares in Q1 2024?

Asset quality remained strong with nonperforming assets at 0.03% of total assets.

Did the book value per share increase in Q1 2024 for First Reliance Bancshares?

Yes, the book value per share increased to $8.86 at the end of Q1 2024.

What was the total capital ratio for First Reliance Bancshares at the bank level in Q1 2024?

The total capital ratio at the bank level was 13.46% in Q1 2024.