First Reliance Bancshares Reports Fourth Quarter 2023 Results

Published

FLORENCE, S.C., Jan. 26, 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 fourth quarter and full year of 2023.

First Reliance Bancshares

Fourth Quarter and Full Year 2023 Highlights

  • Net income for the fourth quarter of 2023 was $0.8 million, or $0.10 per diluted share, compared to $1.5 million, or $0.18 per diluted share, for the fourth quarter of 2022. Net income for the year ended December 31, 2023, was $4.6 million, or $0.56 per diluted share, compared to $5.9 million, or $0.73 per diluted share, for the year ended December 31, 2022. The fourth quarter of 2023 included a securities loss of $0.8 million pre-tax and the full year securities loss totals $1.5 million pre-tax.
  • Adjusted net income (which includes adding back securities losses, net of tax) for the fourth quarter of 2023 was $1.4 million, or $0.17 per diluted share, compared to $0.18 per share, for the fourth quarter of 2022. Adjusted net income for the year ended December 31, 2023, was $5.8 million, or $0.71 per share, compared to $5.9 million, or $0.73 per diluted share, for the year ended December 31, 2022.
  • Net interest income for the quarter was $7.3 million, which represents an increase of $69 thousand, or 1.0%, on a linked quarter basis and a decrease of $0.6 million, or 7.8% compared to the same period in 2022. Net interest income for the full year was $29.0 million, which represents a decrease of $1.1 million, or 3.6%, compared to the same period in 2022.
  • Net interest margin expanded by five basis points during the fourth quarter of 2023 to 3.16% at December 31, 2023, compared to 3.11% for the third quarter of 2023, but decreased 51 basis points compared to the same period in 2022. During the fourth quarter of 2023, the Company entered into a pay fixed/ receive variable rate swap designated as a fair value hedge of $50.0 million in fixed rate loans for two years. This hedge had minimal impact in the fourth quarter of 2023 given the timing of execution in mid-December 2023. Loan interest income is projected to improve from this hedge in the first quarter of 2024.
  • Total loans decreased $0.9 million, or 0.5% annualized, to $705.7 million at December 31, 2023, from $706.6 million at September 30, 2023. For the full year 2023, total loans increased $44.4 million, or 6.7%, from $661.3 million at December 31, 2022. This loan growth was impacted by the decline in the bank's indirect automobile loan portfolio, which decreased by $13.6 million in 2023, and totaled $16.0 million at December 31, 2023. The bank decided to exit the indirect automobile lending approximately two years ago.
  • Total deposits decreased $2.6 million, or 1.2% annualized, to $858.6 million at December 31, 2023, from $861.2 million at September 30, 2023. The company experienced declines in deposit balances for the quarter, in noninterest-bearing and savings, which were partially offset by growth in NOW, money market and time deposits. For the full year 2023, total deposits increased $60.4 million, or 7.6%, from $798.2 million at December 31, 2022.
  • Asset quality improved with nonperforming assets as a percentage of total assets of 0.04% at December 31, 2023, compared to 0.06% at September 30, 2023. The Company had net recoveries of $1 thousand, or 0.00% annualized of average loans during the quarter compared to net charge-offs of $10 thousand, or annualized 0.01% of average loans, for the quarter ended September 30, 2023. For the full year of 2023, net charge-offs totaled $228 thousand, or 0.03% of average loans.
  • Cost of funds, including noninterest-bearing deposits, for the fourth quarter of 2023 increased to 2.03% from 1.89% on a linked quarter basis and from 0.71% for the same period in 2022. Cost of funds for the full year of 2023 increased to 1.71% from 0.37% for the year 2022.

Rick Saunders, Chief Executive Officer, stated: "The Company continues to execute on its key strategies of funding its asset growth with deposits in 2023.  We are beginning to see our net interest margin expand as the fourth quarter of 2023 increased to 3.16% from 3.11% in third quarter of 2023.  We have taken actions in 2023 to enhance our net interest margin with a hedge of loans, repositioning of our securities portfolio, and increased credit spreads on loan pricing.  The mortgage industry remains subdued in the higher interest rate environment; however, we have added some outstanding mortgage producers during the year.  Credit quality remains strong with minimal nonperforming assets and net charge offs.  I am proud of our team and the accomplishments in 2023."  Saunders continued, "As we enter 2024, we expect our net interest margin to expand as our loan portfolio continues to reprice and deposit costs stabilize.  We will continue to focus on gaining operating efficiencies by improving our cost structure and ensuring sound risk management practices."

Financial Summary

Three Months Ended

Twelve Months Ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Dec 31

Dec 31

($ in thousands, except per share data)

2023

2023

2023

2023

2022

2023

2022

Earnings:

Net income available to common shareholders

$    776

$     1,444

$  1,013

$  1,371

$  1,493

$  4,603

$  5,931

Earnings per common share, diluted

0.10

0.18

0.12

0.17

0.18

0.56

0.73

Total revenue(1)

8,285

9,219

8,959

9,430

9,417

35,892

39,021

Net interest margin

3.16 %

3.11 %

3.16 %

3.34 %

3.67 %

3.19 %

3.48 %

Return on average assets(2)

0.32 %

0.58 %

0.41 %

0.57 %

0.65 %

0.47 %

0.63 %

Return on average equity(2)

4.70 %

8.68 %

6.13 %

8.53 %

9.78 %

7.00 %

9.11 %

Efficiency ratio(3)

89.83 %

80.35 %

82.50 %

79.20 %

78.14 %

82.78 %

79.37 %

 

As of

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Balance Sheet:

Total assets

$  974,157

$  991,721

$  992,596

$  1,000,535

$  937,113

Total loans receivable

705,672

706,596

694,130

669,969

661,251

Total deposits

858,597

861,229

830,085

836,902

798,184

Total transaction deposits(4) to total deposits

41.31 %

43.55 %

44.00 %

46.46 %

51.05 %

Loans to deposits

82.19 %

82.05 %

83.62 %

80.05 %

82.84 %

Bank Capital Ratios:

Total risk-based capital ratio

13.86 %

13.54 %

13.57 %

13.45 %

13.43 %

Tier 1 risk-based capital ratio

12.75 %

12.43 %

12.43 %

12.41 %

12.43 %

Tier 1 leverage ratio

10.32 %

10.11 %

9.95 %

10.14 %

10.37 %

Common equity tier 1 capital ratio

12.75 %

12.43 %

12.43 %

12.41 %

12.43 %

Asset Quality Ratios:

Nonperforming assets as a percentage of    total assets

0.04 %

0.06 %

0.05 %

0.05 %

0.05 %

Allowance for loan losses as a percentage of    total loans receivable

1.19 %

1.19 %

1.19 %

1.20 %

1.16 %

Footnotes to table located at the end of this release.

 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited

Three Months Ended

Twelve Months Ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

Dec 31

($ in thousands, except per share data)

2023

2023

2023

2023

2022

2023

2022

Interest income

Loans

$    9,678

$   9,394

$   8,837

$   8,260

$   7,848

$    36,171

$    28,565

Investment securities

1,832

1,596

1,371

1,343

1,247

6,142

3,755

Other interest income

396

536

782

362

316

2,076

886

Total interest income

11,906

11,526

10,990

9,965

9,411

44,389

33,206

Interest expense

Deposits

4,076

3,671

2,876

1,922

1,106

12,546

1,961

Other interest expense

558

651

893

769

417

2,870

1,204

Total interest expense

4,634

4,322

3,769

2,691

1,523

15,416

3,165

Net interest income

7,272

7,204

7,221

7,274

7,888

28,973

30,041

Provision for loan losses

(118)

(42)

280

248

115

369

480

Net interest income after provision for loan    losses

7,390

7,246

6,941

7,026

7,773

28,604

29,561

Noninterest income

Mortgage banking income

694

1,147

1,063

916

378

3,821

4,416

Service fees on deposit accounts

336

371

341

326

330

1,374

1,392

Debit card and other service charges,    commissions, and fees

544

537

563

517

500

2,160

2,093

Income from bank owned life insurance

99

95

91

244

92

529

360

Gain on sale of securities, net

(802)

(268)

(455)

-

-

(1,526)

-

Gain (Loss) on disposal of fixed assets

11

-

-

19

24

30

23

Other income

132

132

134

134

205

531

696

Total noninterest income

1,014

2,014

1,737

2,156

1,529

6,919

8,980

Noninterest expense

Compensation and benefits

4,558

4,603

4,461

4,652

4,364

18,274

19,006

Occupancy and equipment

798

882

856

892

883

3,429

3,589

Data processing, technology, and communications

985

923

942

771

818

3,614

3,268

Professional fees

56

58

111

196

207

420

751

Marketing

104

151

206

226

279

687

744

Other

942

790

815

732

809

3,286

3,612

Total noninterest expense

7,443

7,407

7,391

7,469

7,359

29,710

30,970

Income before provision for income taxes

961

1,853

1,287

1,713

1,943

5,813

7,571

Income tax expense

185

409

274

342

450

1,210

1,640

Net income available to common shareholders

$      776

$   1,444

$   1,013

$   1,371

$   1,493

$      4,603

$      5,931

Addback securities losses, net of tax

648

355

211

-

-

1,208

-

Adjusted net income (non-GAAP)

$   1,424

$   1,799

$   1,224

$   1,371

$   1,493

$      5,812

$      5,931

Weighted average common shares - basic

7,826

7,834

7,825

7,807

7,775

7,823

7,779

Weighted average common shares - diluted

8,164

8,149

8,142

8,189

8,152

8,164

8,127

Basic income per common share

$     0.10

$     0.18

$     0.13

$     0.18

$     0.19

$        0.59

$        0.76

Diluted income per common share

$     0.10

$     0.18

$     0.12

$     0.17

$     0.18

$        0.56

$        0.73

Adjusted basic net income per common share (non-GAAP)

$     0.18

$     0.23

$     0.16

$     0.18

$     0.19

$        0.74

$        0.76

Adjusted diluted net income per common share (non-GAAP)

$     0.17

$     0.22

$     0.15

$     0.17

$     0.18

$        0.71

$        0.73

Net income for the three months ended December 31, 2023, was $0.8 million, or $0.10 per diluted common share, compared to $1.5 million, or $0.18 per diluted common share, for the three months ended December 31, 2022.  Net income for the twelve months ended December 31, 2023, totaled $4.6 million, or $0.56 per diluted common share, compared to $5.9 million, or $0.73 per diluted common share for the twelve months ended December 31, 2022.

Noninterest income for the three months ended December 31, 2023, was $1.0 million, a decrease of $0.5 million from $1.5 million for the same period in 2022.  This decrease was the result of the bank disposing of its remaining low yielding US Treasury securities resulting in a loss of $0.8 million.  Mortgage banking income produced net revenue of $0.7 million during the three months ended December 31, 2023, compared to $0.4 million for same period last year, which partially offset the securities loss.    For the twelve months ended December 31, 2023, noninterest income decreased by $2.1 million compared to 2022.  This decrease was the result of the realized securities losses of $1.5 million on low yielding US Treasury securities and the decrease in mortgage banking income of $0.6 million, due to the decline in sales volume compared to calendar year 2022.   

Noninterest expense for the three months ended December 31, 2023, was $7.4 million, an increase of $84,000 for the same period in 2022.  For the twelve-month period ended December 31, 2023, noninterest expense was $29.7 million compared to $31.0 million in 2022.  This $1.3 million decrease was driven by declines in all categories of expense, except data processing, technology and communications, which increased by $346,000.

NET INTEREST INCOME AND MARGIN – Unaudited

For the Three Months Ended

December 31, 2023

December 31, 2022

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

$     30,212

$      370

4.86 %

$     33,754

$      310

3.64 %

Investment securities

161,824

1,832

4.49 %

158,204

1,247

3.13 %

Nonmarketable equity securities

1,420

26

7.36 %

871

6

2.82 %

Loans held for sale

13,860

274

7.85 %

4,767

83

6.91 %

Loans

706,002

9,404

5.28 %

654,285

7,765

4.71 %

Total interest-earning assets

913,318

11,906

5.17 %

851,881

9,411

4.38 %

Allowance for loan losses

(8,484)

(7,665)

Noninterest-earning assets

78,914

78,848

Total assets

$  983,748

$  923,064

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts

$  142,290

$      269

0.75 %

$  146,865

$         67

0.18 %

Savings & money market

334,068

2,331

2.77 %

290,709

858

1.17 %

Time deposits

165,466

1,476

3.54 %

99,847

181

0.72 %

Total interest-bearing deposits

641,823

4,076

2.52 %

537,421

1,106

0.82 %

FHLB advances and other borrowings

15,001

193

5.09 %

14,330

96

2.67 %

Subordinated debentures

25,719

365

5.63 %

25,687

321

4.95 %

Total interest-bearing liabilities

682,543

4,634

2.69 %

577,438

1,523

1.05 %

Noninterest bearing deposits

221,275

270,975

Other liabilities

13,957

13,551

Shareholders' equity

65,972

61,100

Total liabilities and shareholders' equity

$  983,748

$  923,064

Net interest income (tax equivalent) / interest   rate spread

$  7,272

2.48 %

$  7,888

3.34 %

Net Interest Margin

3.16 %

3.67 %

 

For the Twelve Months Ended

December 31, 2023

December 31, 2022

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

$     43,739

$     1,969

4.50 %

$     81,509

$         863

1.06 %

Investment securities

161,201

6,142

3.81 %

145,694

3,755

2.58 %

Nonmarketable equity securities

1,774

108

6.08 %

632

23

3.69 %

Loans held for sale

14,131

995

7.04 %

14,218

647

4.55 %

Loans

687,682

35,175

5.12 %

622,418

27,918

4.49 %

Total interest-earning assets

908,527

44,389

4.89 %

864,471

33,206

3.84 %

Allowance for loan losses

(8,170)

(7,415)

Noninterest-earning assets

78,277

80,187

Total assets

$  978,634

$  937,243

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts

$  142,082

$         764

0.54 %

$  158,135

$         136

0.09 %

Savings & money market

318,347

7,731

2.43 %

289,213

1,364

0.47 %

Time deposits

143,422

4,051

2.82 %

110,028

461

0.42 %

Total interest-bearing deposits

603,851

12,546

2.08 %

557,376

1,961

0.35 %

FHLB advances and other borrowings

33,076

1,441

4.36 %

13,367

131

0.98 %

Subordinated debentures

25,707

1,429

5.56 %

25,675

1,073

4.18 %

Total interest-bearing liabilities

662,634

15,416

2.33 %

596,418

3,165

0.53 %

Noninterest bearing deposits

236,468

263,085

Other liabilities

13,798

12,656

Shareholders' equity

65,734

65,084

Total liabilities and shareholders' equity

$  978,634

$  937,243

Net interest income (tax equivalent) / interest   rate spread

$  28,973

2.56 %

$  30,041

3.31 %

Net Interest Margin

3.19 %

3.48 %

Net interest income for the three months ended December 31, 2023, was $7.3 million compared to $7.9 million for the three months ended December 31, 2022.  This decline was driven by the increases in the rates paid on deposits and borrowings which outpaced the yield increases and the average balances of loans and investments.  Yields on interest-earning assets increased to 5.17% for the three months ended December 31, 2023, compared to 4.38% for the same period in 2022. 

Net interest income was $29.0 million for the twelve months ended December 31, 2023, a decrease of $1.1 million over the same period in 2022.  Increases in the rates paid on deposits and borrowings outpaced the yield increases and the average balances of loans and investments resulting in lower net interest income in 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited

As of

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Assets

Cash and cash equivalents:

Cash and due from banks

$        4,354

$        3,158

$        3,748

$            4,233

$        3,917

Interest-bearing deposits with banks

17,590

32,835

55,496

71,590

29,880

Total cash and cash equivalents

21,944

35,993

59,244

75,823

33,797

Time deposits in other banks

-

-

-

-

259

Investment securities:

Investment securities available for sale

171,400

162,573

158,143

164,150

162,097

Other investments

1,078

2,025

2,563

2,570

1,921

Total investment securities

172,478

164,598

160,706

166,720

164,018

Mortgage loans held for sale

7,156

17,506

12,485

16,236

7,940

Loans receivable:

Loans

705,672

706,596

694,130

669,969

661,251

Less allowance for loan losses

(8,393)

(8,430)

(8,229)

(8,052)

(7,660)

Loans receivable, net

697,279

698,166

685,901

661,917

653,591

Property and equipment, net

22,298

22,505

22,588

22,634

22,811

Mortgage servicing rights

11,638

11,394

10,893

10,491

10,441

Bank owned life insurance

18,191

18,092

17,997

17,906

18,836

Deferred income taxes

6,248

9,184

8,534

8,263

8,629

Other assets

16,925

14,283

14,248

20,545

16,791

Total assets

974,157

991,721

992,596

1,000,535

937,113

Liabilities

Deposits

$  858,597

$  861,229

$  830,085

$      836,902

$  798,184

Federal Home Loan Bank advances

5,000

25,000

45,000

45,000

30,000

Federal funds and repurchase agreements

307

81

11,910

12,974

7,368

Subordinated debentures

15,413

15,405

15,397

15,389

15,381

Junior subordinated debentures

10,310

10,310

10,310

10,310

10,310

Reserve for unfunded commitments

407

488

740

754

-

Other liabilities

12,727

13,186

12,616

12,743

12,574

Total liabilities

902,761

925,699

926,058

934,072

873,817

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

87

Treasury stock, at cost

(4,821)

(4,750)

(4,666)

(4,598)

(4,502)

Nonvested restricted stock

(2,518)

(2,387)

(2,542)

(2,765)

(2,121)

Additional paid-in capital

55,471

55,068

54,972

54,984

53,968

Retained earnings

33,748

32,972

31,626

30,564

29,916

Accumulated other comprehensive (loss) income 

(10,573)

(14,970)

(12,941)

(11,811)

(14,053)

Total shareholders' equity

71,396

66,022

66,538

66,463

63,296

Total liabilities and shareholders' equity

$  974,157

$  991,721

$  992,596

$  1,000,535

$  937,113

First Reliance cash and cash equivalents totaled $21.9 million at December 31, 2023, compared to $36.0 million at September 30, 2023.  Cash with the Federal Reserve Bank totaled $17.6 million at December 31, 2023, compared to $32.8 million at September 30, 2023.

All debt securities were classified as available for sale (AFS) securities with balances of $171.4 million at December 31, 2023, compared to $162.6 million at September 30, 2023.  The unrealized loss recorded on these securities totaled $14.0 million at December 31, 2023, compared to $19.8 million at September 30, 2023, a decrease in the fourth quarter of 2023 of $5.8 million (before taxes).  Total securities represented 17.7% of total assets at December 31, 2023, compared to 17.5% of total assets at December 31, 2022.

The Company had $5.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at December 31, 2023, and $25.0 million at September 30, 2023, respectively.  The Company had remaining credit availability in excess of $291.9 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to more than $35.5 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

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(shares in thousands)

2023

2023

2023

2023

2022

Voting common shares outstanding

8,772

8,754

8,752

8,763

8,730

Treasury shares outstanding

(633)

(623)

(612)

(601)

(590)

  Total common shares outstanding

8,139

8,131

8,140

8,162

8,140

Tangible book value per common share(5)

$  8.68

$  8.02

$  8.08

$  8.04

$  7.67

Stock price:

  High

$  9.00

$  7.40

$  8.80

$  8.80

$  9.50

  Low

$  6.91

$  6.30

$  6.00

$  6.50

$  8.60

  Period end

$  8.57

$  7.20

$  6.37

$  7.44

$  8.72

 

ASSET QUALITY MEASURES – Unaudited

As of

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Nonperforming Assets

Commercial

Owner occupied RE

$                -

$                -

$                -

$             80

$          134

Non-owner occupied RE

86

86

82

-

-

Construction

-

-

-

-

-

Commercial business

99

164

159

278

76

Consumer

Real estate

-

-

-

-

1

Home equity

-

145

145

-

-

Construction

-

-

-

-

-

Other

55

59

94

65

119

Nonaccruing loan modifications or troubled debt restructurings

56

65

65

71

143

Total nonaccrual loans

$          296

$          519

$          545

$          494

$          473

Other real estate owned or other assets owned

47

45

-

-

-

Total nonperforming assets

$          343

$          564

$          545

$          494

$          473

Nonperforming assets as a percentage of:

Total assets

0.04 %

0.06 %

0.05 %

0.05 %

0.05 %

Total loans receivable

0.05 %

0.08 %

0.08 %

0.07 %

0.07 %

Accruing loan modifications or troubled debt restructurings

$          947

$      1,027

$      1,059

$      1,381

$      1,151

Three Months Ended

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Allowance for Credit Losses

Balance, beginning of period

$      8,429

$      8,229

$      8,052

$      7,660

$      7,630

CECL adoption

$          114

Loans charged-off

108

41

145

125

101

Recoveries of loans previously charged-off

109

31

28

23

16

Net charge-offs (recoveries)

(1)

10

117

102

85

Provision for loan losses

(38)

210

294

380

115

Balance, end of period

$      8,393

$      8,429

$      8,229

$      8,052

$      7,660

Allowance for loan losses to gross loans receivable

1.19 %

1.19 %

1.19 %

1.20 %

1.16 %

Allowance for loan losses to nonaccrual loans

2835.47 %

1624.28 %

1509.91 %

1629.96 %

1619.45 %

Footnotes to table located at the end of this release.

 

Our asset quality improved through December 31, 2023, with nonperforming assets decreasing $221 thousand to $343 thousand which represents 0.04% of total assets, compared to $564,000 or 0.06% of total assets at September 30, 2023.  The allowance for credit losses as a percentage of total loans receivable was 1.19% at December 31, 2023 and at September 30, 2023.  The Company had net recoveries of $1 thousand for the three months ended December 31, 2023, compared to net charge offs of $85 thousand for the same period in 2022.

LOAN COMPOSITION – Unaudited

As of

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Commercial real estate

$  433,687

$  430,825

$  415,616

$  401,534

$  391,661

Consumer real estate

177,102

172,702

168,227

156,562

151,533

Commercial and industrial

63,946

67,740

71,345

71,350

69,243

Consumer and other

30,937

35,329

38,942

40,523

48,814

Total loans, net of deferred fees

705,672

706,596

694,130

669,969

661,251

Less allowance for loan losses

8,393

8,430

8,229

8,052

7,660

Total loans, net

$  697,279

$  698,166

$  685,901

$  661,917

$  653,591

 

DEPOSIT COMPOSITION – Unaudited

As of

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(dollars in thousands)

2023

2023

2023

2023

2022

Noninterest-bearing

$  210,604

$  231,672

$  230,153

$  249,688

$  255,427

Interest-bearing:

DDA and NOW accounts

144,039

143,393

135,071

139,130

152,012

Money market accounts

289,158

281,325

264,130

265,264

221,550

Savings

45,558

47,422

51,029

54,247

65,494

Time, less than $250,000

121,035

117,989

113,536

97,223

80,549

Time, $250,000 and over

48,203

39,428

36,166

31,350

23,152

Total deposits

$  858,597

$  861,229

$  830,085

$  836,902

$  798,184

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 $974 million. The company employs more than 160 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 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 HaileSEVP & Chief Financial Officer(843) 656-5000rhaile@firstreliance.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/first-reliance-bancshares-reports-fourth-quarter-2023-results-302045691.html

SOURCE First Reliance Bancshares, Inc.

In This Story

FSRL