First Reliance Bancshares Reports Second Quarter 2023 Results

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Jul 26, 2023, 16:26 ET

FLORENCE, S.C., July 26, 2023 /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 second quarter of 2023.

Second Quarter 2023 Highlights

Net income for the second quarter of 2023 was $1.0 million, or $0.12 per diluted share, compared to $1.1 million, or $0.13 per diluted share, for the second quarter of 2022.
During the second quarter of 2023, the Company recorded a loss on the sale of securities of $358 thousand, net of tax, or $0.04 per diluted share. The proceeds from the security sold have been reinvested with an expected earn back of less than a year, which should immediately improve margins and net interest income.
Net interest income for the quarter was $7.2 million, which represents a decrease of $53 thousand, or 0.7%, on a linked quarter basis and a decrease of $112 thousand, or 1.5% compared to the same period in 2022.
Net interest margin decreased during the quarter to 3.16% at June 30, 2023, compared to 3.34% for the first quarter of 2023, and decreased 23 basis points compared to the same period in 2022.
Total loans increased $24.1 million, or 14.4% annualized, to $694.1 million at June 30, 2023, from $670.0 million at March 31, 2023.
Total deposits decreased $6.8 million, or 3.3% annualized, to $830.1 million at June 30, 2023, from $836.9 million at March 31, 2023.
Asset quality remained steady with nonperforming assets as a percentage of total assets of 0.05% at June 30, 2023, and March 31, 2023. The Company had net charge-offs of $117 thousand or annualized 0.07% of average loans during the quarter compared to net charge-offs of $102 thousand, or annualized 0.06% of average loans, for the quarter ended March 31, 2023.
Cost of funds, including noninterest-bearing deposits, for the second quarter of 2023 increased to 1.67% from 1.24% on a linked quarter basis and from 0.21% for the same period in 2022.

Rick Saunders, Chief Executive Officer, remarked: "During the second quarter, our company continued to perform well despite the uncertain economic environment and headwinds from interest rates and mortgage volumes. We are pleased with the continued reduction in expenses, especially in compensation and benefits. These improvements in our cost structure will benefit the Company as asset yields rebound and adjust to the Federal Reserve's aggressive interest rate tightening campaign."

Financial Summary - unaudited

	Three Months Ended					Six Months Ended
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Jun 30	Jun 30
($ in thousands, except per share data)	2023	2023	2022	2022	2022	2023	2022
Earnings:
Net income available to common shareholders	$ 1,013	$ 1,371	$ 1,493	$ 2,522	$ 1,064	$ 2,383	$ 1,916
Earnings per common share, diluted	0.12	0.17	0.18	0.31	0.13	0.29	0.24
Total revenue⁽¹⁾	8,959	9,430	9,417	11,103	9,404	18,389	18,501
Net interest margin	3.16 %	3.34 %	3.68 %	3.71 %	3.39 %	3.25 %	3.25 %
Return on average assets⁽²⁾	0.41 %	0.57 %	0.65 %	1.06 %	0.45 %	0.49 %	0.41 %
Return on average equity⁽²⁾	6.13 %	8.53 %	9.78 %	15.60 %	6.60 %	7.31 %	5.69 %
Efficiency ratio⁽³⁾	82.50 %	79.20 %	78.14 %	69.40 %	84.49 %	80.81 %	85.97 %

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Balance Sheet:
Total assets	$ 992,596	$ 1,000,535	$ 937,113	$ 946,437	$ 946,853
Total loans receivable	694,130	669,969	661,251	646,634	637,953
Total deposits	830,085	836,902	798,184	840,392	830,992
Total transaction deposits⁽⁴⁾ to total deposits	44.00 %	46.46 %	51.05 %	51.42 %	51.14 %
Loans to deposits	83.62 %	80.05 %	82.84 %	76.94 %	76.77 %
Bank Capital Ratios:
Total risk-based capital ratio	13.57 %	13.45 %	13.43 %	13.47 %	12.97 %
Tier 1 risk-based capital ratio	12.43 %	12.41 %	12.43 %	12.45 %	11.98 %
Tier 1 leverage ratio	9.95 %	10.14 %	10.37 %	9.84 %	9.66 %
Common equity tier 1 capital ratio	12.43 %	12.41 %	12.43 %	12.45 %	11.98 %
Asset Quality Ratios:
Nonperforming assets as a percentage of total assets	0.05 %	0.05 %	0.05 %	0.06 %	0.06 %
Allowance for credit losses as a percentage of total loans receivable	1.19 %	1.20 %	1.16 %	1.18 %	1.17 %

Footnotes to table located at the end of this release.

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited

	Three Months Ended					Six Months Ended
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022	2023	2022
Interest income
Loans	$ 8,837	$ 8,260	$ 7,848	$ 7,555	$ 6,781	$ 17,097	$ 13,161
Investment securities	1,371	1,343	1,247	1,097	840	2,714	1,411
Other interest income	782	362	316	321	176	1,144	249
Total interest income	10,990	9,965	9,411	8,973	7,797	20,955	14,821
Interest expense
Deposits	2,876	1,922	1,106	446	212	4,799	410
Other interest expense	893	769	417	283	252	1,661	503
Total interest expense	3,769	2,691	1,523	729	464	6,460	913
Net interest income	7,221	7,274	7,888	8,244	7,333	14,495	13,908
Provision for loan losses	280	248	115	170	110	528	195
Net interest income after provision for loan losses	6,941	7,026	7,773	8,074	7,223	13,967	13,713
Noninterest income
Mortgage banking income	1,063	916	378	1,721	897	1,979	2,317
Service fees on deposit accounts	341	326	330	343	357	668	719
Debit card and other service charges, commissions, and fees	563	517	500	536	559	1,080	1,057
Income from bank owned life insurance	91	244	92	91	89	335	177
Loss on sale of securities, net	(455)	-	-	-	-	(455)	-
Gain (Loss) on disposal of fixed assets	-	19	24	(10)	-	19	10
Other income	134	134	205	178	168	267	313
Total noninterest income	1,737	2,156	1,529	2,859	2,070	3,893	4,593
Noninterest expense
Compensation and benefits	4,461	4,652	4,364	4,505	5,059	9,113	10,138
Occupancy and equipment	856	892	883	923	890	1,748	1,783
Data processing, technology, and communications	942	869	878	846	789	1,811	1,627
Professional fees	111	196	207	185	180	307	360
Marketing	206	226	279	206	184	432	258
Other	815	634	748	1,040	843	1,449	1,740
Total noninterest expense	7,391	7,469	7,359	7,705	7,945	14,860	15,906
Income before provision for income taxes	1,287	1,713	1,943	3,228	1,348	3,000	2,400
Income tax expense	274	342	450	706	284	617	484
Net income available to common shareholders	$ 1,013	$ 1,371	$ 1,493	$ 2,522	$ 1,064	$ 2,383	$ 1,916

Weighted average common shares - basic	7,825	7,807	7,775	7,777	7,782	7,816	7,783
Weighted average common shares - diluted	8,142	8,189	8,152	8,073	8,094	8,173	8,097
Basic income per common share	$ 0.13	$ 0.18	$ 0.19	$ 0.32	$ 0.14	$ 0.30	$ 0.25
Diluted income per common share	$ 0.12	$ 0.17	$ 0.18	$ 0.31	$ 0.13	$ 0.29	$ 0.24

Net income for the three months ended June 30, 2023, was $1.0 million, or $0.12 per diluted common share, compared to $1.1 million, or $0.13 per diluted common share, for the three months ended June 30, 2022. Net income for the six months ended June 30, 2023, totaled $2.4 million, or $0.29 per diluted common share, compared to $1.9 million, or $0.24 per diluted common share for the six months ended June 30, 2022.

Noninterest income for the three months ended June 30, 2023, was $1.7 million, a decrease of $0.4 million from $2.1 million for the same period in 2022. Noninterest income is largely driven by the Company's mortgage banking division, which produced net revenue of $1.1 million during the three months ended June 30, 2023, compared to $0.9 million for the same period in 2022. Also, included in the noninterest income was a loss on sale of securities of $455 thousand, pre -tax.

Noninterest expenses for the three months ended June 30, 2023, was $7.4 million, a decrease of $0.6 million from $8.0 million for the same period in 2022. This decrease was primarily driven by a decrease in compensation and benefits and other expenses. These were partially offset by an increase in marketing expense compared to second quarter 2022.

NET INTEREST INCOME AND MARGIN – Unaudited

	For the Three Months Ended
	June 30, 2023			June 30, 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	$ 60,416	$ 750	4.98 %	$ 86,552	$ 171	0.79 %
Investment securities	160,245	1,371	3.43 %	152,115	840	2.22 %
Nonmarketable equity securities	2,186	31	5.75 %	521	5	3.97 %
Loans held for sale	16,864	294	7.00 %	22,320	248	4.46 %
Loans	677,668	8,543	5.06 %	607,368	6,533	4.31 %
Total interest-earning assets	917,379	10,989	4.81 %	868,876	7,797	3.60 %
Allowance for credit losses	(8,073)			(7,315)
Noninterest-earning assets	77,561			81,880
Total assets	$ 986,867			$ 943,441

Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$ 138,167	$ 132	0.38 %	$ 169,895	$ 20	0.05 %
Savings & money market	314,091	1,860	2.37 %	286,120	101	0.14 %
Time deposits	139,501	884	2.54 %	111,876	91	0.33 %
Total interest-bearing deposits	591,759	2,876	1.95 %	567,891	212	0.15 %
FHLB advances and other borrowings	51,207	532	4.17 %	12,398	6	0.20 %
Subordinated debentures	25,703	360	5.62 %	25,671	246	3.84 %
Total interest-bearing liabilities	668,669	3,768	2.26 %	605,960	464	0.31 %
Noninterest bearing deposits	238,295			260,623
Other liabilities	13,802			12,383
Shareholders' equity	66,101			64,475
Total liabilities and shareholders' equity	$ 986,867			$ 943,441

Net interest income (tax equivalent) / interest rate spread		$ 7,221	2.54 %		$ 7,333	3.29 %
Net Interest Margin			3.16 %			3.39 %

Net interest income for the three months ended June 30, 2023, was $7.2 million compared to $7.3 million for the three months ended June 30, 2022. This decrease was primarily driven by rates paid on interest-bearing liabilities. Yield on interest-earning assets increased to 4.81% for the three months ended June 30, 2023, from 3.60% for the same period in 2022.

Interest expense increased as well from $464 thousand in the second quarter of 2022 to $3.8 million in the second quarter of 2023. This increase reflects the rise in interest rates across the funding categories.

	For the Six Months Ended
	June 30, 2023			June 30, 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	$ 50,345	$ 1,100	4.41 %	$ 112,614	$ 236	0.42 %
Investment securities	161,627	2,714	3.39 %	130,111	1,411	2.19 %
Nonmarketable equity securities	2,100	44	4.27 %	568	13	4.41 %
Loans held for sale	13,289	450	6.83 %	21,128	412	3.93 %
Loans	673,229	16,648	4.99 %	597,320	12,749	4.30 %
Total interest-earning assets	900,590	20,956	4.69 %	861,741	14,821	3.47 %
Allowance for loan losses	(7,955)			(7,210)
Noninterest-earning assets	78,225			81,223
Total assets	$ 970,860			$ 935,754

Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$ 139,746	$ 237	0.34 %	$ 166,755	$ 39	0.05 %
Savings & money market	308,178	3,277	2.14 %	280,616	185	0.13 %
Time deposits	124,811	1,284	2.07 %	116,104	185	0.32 %
Total interest-bearing deposits	572,735	4,798	1.69 %	563,475	409	0.15 %
FHLB advances and other borrowings	47,839	963	4.06 %	13,948	30	0.43 %
Subordinated debentures	25,699	699	5.48 %	25,667	474	3.72 %
Total interest-bearing liabilities	646,273	6,460	2.02 %	603,090	913	0.31 %
Noninterest bearing deposits	245,738			253,104
Other liabilities	13,658			12,243
Shareholders' equity	65,191			67,317
Total liabilities and shareholders' equity	$ 970,860			$ 935,754

Net interest income (tax equivalent) / interest rate spread		$ 14,496	2.68 %		$ 13,908	3.16 %
Net Interest Margin			3.25 %			3.25 %

Net interest income was $14.5 million for the six months ended June 30, 2023, an increase of $0.6 million over the same period in 2022. Increases in average loans and investments as well as yields on interest earning assets contributed to the increase in interest income, which was partially offset by an increase in rates on interest bearing deposits and borrowings.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Assets
Cash and cash equivalents:
Cash and due from banks	$ 3,748	$ 4,233	$ 3,917	$ 4,147	$ 7,702
Interest-bearing deposits with banks	55,496	71,590	29,880	60,537	45,683
Total cash and cash equivalents	59,244	75,823	33,797	64,684	53,385
Time deposits in other banks	-	-	259	259	257
Investment securities:
Investment securities available for sale	158,143	164,150	162,097	160,504	164,440
Other investments	2,563	2,570	1,921	658	657
Total investment securities	160,706	166,720	164,018	161,162	165,097
Mortgage loans held for sale	12,485	16,236	7,940	4,599	19,648
Loans receivable:
Loans	694,130	669,969	661,251	646,634	637,953
Less allowance for credit losses	(8,229)	(8,052)	(7,660)	(7,630)	(7,494)
Loans receivable, net	685,901	661,917	653,591	639,004	630,459
Property and equipment, net	22,588	22,634	22,811	22,868	23,100
Mortgage servicing rights	10,893	10,491	10,441	10,182	14,893
Bank owned life insurance	17,997	17,906	18,836	18,744	18,653
Deferred income taxes	8,534	8,263	8,629	8,629	7,376
Other assets	14,248	20,545	16,791	16,306	13,985
Total assets	992,596	1,000,535	937,113	946,437	946,853
Liabilities
Deposits	$ 830,085	$ 836,902	$ 798,184	$ 840,392	$ 830,992
Federal Home Loan Bank advances	45,000	45,000	30,000	-	-
Federal funds and repurchase agreements	11,910	12,974	7,368	3,726	13,805
Subordinated debentures	15,397	15,389	15,381	15,373	15,365
Junior subordinated debentures	10,310	10,310	10,310	10,310	10,310
Reserve for unfunded commitments	740	754	-	-	-
Other liabilities	12,616	12,743	12,574	14,472	12,412
Total liabilities	926,058	934,072	873,817	884,273	882,884
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	87	88	88
Treasury stock, at cost	(4,666)	(4,598)	(4,502)	(4,364)	(4,333)
Nonvested restricted stock	(2,542)	(2,765)	(2,121)	(2,291)	(2,500)
Additional paid-in capital	54,972	54,984	53,968	54,013	54,088
Retained earnings	31,626	30,564	29,916	28,423	25,901
Accumulated other comprehensive (loss) income	(12,941)	(11,811)	(14,053)	(13,706)	(9,276)
Total shareholders' equity	66,538	66,463	63,296	62,164	63,969
Total liabilities and shareholders' equity	$ 992,596	$ 1,000,535	$ 937,113	$ 946,437	$ 946,853

First Reliance cash and cash equivalents totaled $59.2 million at June 30, 2023, compared to $75.8 million at March 31, 2023. Cash with the Federal Reserve Bank totaled $54.3 million at June 30, 2023, compared to $70.8 million at March 31, 2023.

All debt securities were classified as available for sale (AFS) securities with balances of $158.1 million at June 30, 2023, compared to $164.2 million at March 31, 2023. The unrealized loss recorded on these securities totaled $17.1 million compared to $15.6 million, respectively, an increase in the second quarter of 2023 of $1.5 million (before taxes).

The Company had $45.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at June 30, 2023 and March 31, 2023, respectively. The Company had remaining credit availability in excess of $235 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to more than $37.0 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
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(shares in thousands)	2023	2023	2022	2022	2022
Voting common shares outstanding	8,752	8,763	8,730	8,793	8,801
Treasury shares outstanding	(612)	(601)	(590)	(575)	(571)
Total common shares outstanding	8,140	8,162	8,140	8,218	8,230

Tangible book value per common share⁽⁵⁾	$ 8.08	$ 8.04	$ 7.67	$ 7.46	$ 7.66

Stock price:
High	$ 8.80	$ 8.80	$ 9.50	$ 9.40	$ 9.85
Low	$ 6.02	$ 6.70	$ 8.60	$ 9.00	$ 9.25
Period end	$ 6.37	$ 7.44	$ 8.72	$ 9.14	$ 9.25

ASSET QUALITY MEASURES – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Nonperforming Assets
Commercial
Owner occupied RE	$ -	$ 80	$ 134	$ 135	$ 140
Non-owner occupied RE	82	-	-	-	-
Construction	-	-	-	-	-
Commercial business	159	278	76	146	81
Consumer
Real estate	-	-	1	2	3
Home equity	145	-	-	-	-
Construction	-	-	-	-	-
Other	94	65	119	130	160
Nonaccruing loan modifications	65	71	143	160	173
Total nonaccrual loans	$ 545	$ 494	$ 473	$ 573	$ 557
Other real estate owned	-	-	-	-	-
Total nonperforming assets	$ 545	$ 494	$ 473	$ 573	$ 557
Nonperforming assets as a percentage of:
Total assets	0.05 %	0.05 %	0.05 %	0.06 %	0.06 %
Total loans receivable	0.08 %	0.07 %	0.07 %	0.09 %	0.09 %
Accruing loan modifications	$ 1,059	$ 1,381	$ 1,151	$ 1,312	$ 1,349

	Three Months Ended
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Allowance for Credit Losses
Balance, beginning of period	$ 8,052	$ 7,660	$ 7,630	$ 7,494	$ 7,206
CECL adoption	-	114	-	-	-
Loans charged-off	145	125	101	76	11
Recoveries of loans previously charged-off	28	23	16	42	189
Net charge-offs (recoveries)	117	102	85	34	(178)
Provision for loan losses	294	380	115	170	110
Balance, end of period	$ 8,229	$ 8,052	$ 7,660	$ 7,630	$ 7,494
Allowance for credit losses to gross loans receivable	1.19 %	1.20 %	1.16 %	1.18 %	1.17 %
Allowance for credit losses to nonaccrual loans	1509.91 %	1629.96 %	1619.45 %	1331.59 %	1345.42 %

Footnotes to table located at the end of this release.

Asset quality remained strong through June 30, 2023, with nonperforming assets remaining at $0.5 million, which represents 0.05% of total assets. The allowance for credit losses as a percentage of total loans receivable decreased slightly to 1.19% at June 30, 2023, compared to 1.20% at June 30, 2023. The Company had net charge-offs of $117 thousand for the three months ended June 30, 2023, compared to net recoveries of $178 thousand for the same period in 2022.

LOAN COMPOSITION – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Commercial real estate	$ 415,616	$ 401,534	$ 391,661	$ 378,589	$ 368,316
Consumer real estate	168,227	156,562	151,533	147,110	142,711
Commercial and industrial	71,345	71,350	69,243	67,200	67,239
Consumer and other	38,942	40,523	48,814	53,735	59,687
Total loans, net of deferred fees	694,130	669,969	661,251	646,634	637,953
Less allowance for loan losses	8,229	8,052	7,660	7,630	7,494
Total loans, net	$ 685,901	$ 661,917	$ 653,591	$ 639,004	$ 630,459

DEPOSIT COMPOSITION – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
(dollars in thousands)	2023	2023	2022	2022	2022
Noninterest-bearing	$ 230,153	$ 249,688	$ 255,427	$ 277,587	$ 265,049
Interest-bearing:
DDA and NOW accounts	135,071	139,130	152,012	154,550	159,939
Money market accounts	264,130	265,264	221,550	232,711	230,840
Savings	51,029	54,247	65,494	71,929	66,727
Time, less than $250,000	113,536	97,223	80,549	76,530	78,735
Time, $250,000 and over	36,166	31,350	23,152	27,085	29,702
Total deposits	$ 830,085	$ 836,902	$ 798,184	$ 840,392	$ 830,992

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 $993 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 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
[email protected]

SOURCE First Reliance Bancshares

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First Reliance Bancshares Reports Second Quarter 2023 Results

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