First Reliance Bancshares Reports Second Quarter 2024 Results

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Jul 25, 2024, 16:10 ET

FLORENCE, S.C., July 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 second quarter of 2024.

Second Quarter 2024 Highlights

Net income increased 91.8% for the second quarter of 2024 to $1.9 million, or $0.24 per diluted share, compared to $1.0 million, or $0.12 per diluted share, for the second quarter of 2023.
Net interest income for the quarter was $7.7 million, which represents an increase of $444,800, or 6.2%, compared to the same quarter one year ago. On a linked quarter basis, the increase was $458,100, or 6.4%.
Net interest margin increased during the quarter to 3.20% at June 30, 2024, compared to 3.11% at March 31, 2024, and increased 4 basis points compared to the same period in 2023.
Total loans held for investment increased $14.2 million, or 7.9% annualized, to $739.4 million at June 30, 2024, from $725.2 million at March 31, 2024.
Total deposits increased $18.5 million, or 8.4% annualized, to $899.8 million at June 30, 2024, from $881.3 million at March 31, 2024.
Asset quality remained strong with nonperforming assets totaling $310 thousand, or 0.03% of total assets at June 30, 2024, compared to $282 thousand, or 0.03% of total assets at March 31, 2024.
Cost of funds for the second quarter of 2024 increased to 2.28% from 2.25% on a linked quarter basis and from 1.67% for the same period in 2023.
Book value per share increased $1.05, or 12.9%, from $8.17 per share at June 30, 2023, to $9.22 per share at June 30, 2024. Tangible book value per share increased $1.05, or 13.0%, from $8.08 per share at June 30, 2023, to $9.13 per share at June 30, 2024.
In May 2024, the Company's Board approved a stock repurchase program authorizing the purchase of up to $2.0 million of outstanding common stock through expiration of the program on June 30, 2025. In determining stock repurchases, management will consider the following factors: the Company's stock price, expected growth, capital position, alternative uses of capital, liquidity, financial performance, current and expected macroeconomic environment, regulatory requirements and any other relevant factors.

Rick Saunders, Chief Executive Officer, remarked: "We continue to achieve disciplined growth while also emphasizing expense control and sound asset quality. We're pleased with our slowing deposit betas which helped produce a nine basis point improvement in NIM during the quarter and a 10.69% ROAE. We also increased our tangible book value per share by $0.36 during the quarter. We are blessed to operate in some of the most vibrant markets in the country which are still producing quality opportunities for our commercial and mortgage bankers, additionally, our associates remain highly engaged in providing quality customer service across the markets we serve in North and South Carolina."

Financial Summary

	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)	2024	2024	2023	2023	2023	2024	2023
Earnings:
Net income available to common shareholders	$ 1,942	$ 1,238	$ 776	$ 1,444	$ 1,013	$ 3,180	$ 2,383
Earnings per common share, diluted	0.24	0.15	0.10	0.18	0.12	0.39	0.29
Total revenue⁽¹⁾	10,226	9,690	8,285	9,219	8,959	19,916	18,389
Net interest margin	3.20 %	3.11 %	3.16 %	3.11 %	3.16 %	3.16 %	3.25 %
Return on average assets⁽²⁾	0.75 %	0.49 %	0.32 %	0.58 %	0.41 %	0.63 %	0.49 %
Return on average equity⁽²⁾	10.69 %	7.01 %	4.70 %	8.68 %	6.13 %	8.93 %	7.31 %
Efficiency ratio⁽³⁾	75.21 %	81.04 %	89.83 %	80.35 %	82.50 %	78.05 %	80.81 %

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Balance Sheet:
Total assets	$ 1,058,395	$ 1,027,616	$ 974,157	$ 991,721	$ 992,596
Total loans receivable	739,433	725,234	705,672	706,596	694,130
Total deposits	899,799	881,309	858,597	861,229	830,085
Total transaction deposits⁽⁴⁾ to total deposits	39.18 %	39.86 %	41.31 %	43.55 %	44.00 %
Loans to deposits	82.18 %	82.29 %	82.19 %	82.05 %	83.62 %
Bank Capital Ratios:
Total risk-based capital ratio	13.34 %	13.46 %	13.86 %	13.54 %	13.57 %
Tier 1 risk-based capital ratio	12.28 %	12.37 %	12.75 %	12.43 %	12.43 %
Tier 1 leverage ratio	10.01 %	10.16 %	10.32 %	10.11 %	9.95 %
Common equity tier 1 capital ratio	12.28 %	12.37 %	12.75 %	12.43 %	12.43 %
Asset Quality Ratios:
Nonperforming assets as a percentage of total assets	0.03 %	0.03 %	0.03 %	0.05 %	0.05 %
Allowance for credit losses as a percentage of total loans receivable	1.15 %	1.17 %	1.19 %	1.19 %	1.19 %
Net charge-offs as a percentage of average total loans receivable	0.05 %	0.06 %	0.00 %	0.01 %	0.07 %

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
($ in thousands, except per share data)	2024	2024	2023	2023	2023	2024	2023
Interest income
Loans	$ 10,746	$ 10,085	$ 9,678	$ 9,394	$ 8,837	$ 20,831	$ 17,097
Investment securities	1,875	1,972	1,832	1,596	1,371	3,847	2,714
Other interest income	419	291	396	536	782	710	1,144
Total interest income	13,040	12,348	11,906	11,526	10,990	25,388	20,955
Interest expense
Deposits	4,652	4,332	4,076	3,671	2,876	8,984	4,799
Other interest expense	722	808	558	651	893	1,530	1,661
Total interest expense	5,374	5,140	4,634	4,322	3,769	10,514	6,460
Net interest income	7,666	7,208	7,272	7,204	7,221	14,874	14,495
Provision for credit losses	55	207	(118)	(42)	280	262	528
Net interest income after provision for loan losses	7,611	7,001	7,390	7,246	6,941	14,612	13,967
Noninterest income
Mortgage banking income	1,416	1,375	694	1,147	1,063	2,791	1,979
Service fees on deposit accounts	307	336	336	371	341	643	668
Debit card and other service charges, commissions, and fees	568	519	544	537	563	1,087	1,080
Income from bank owned life insurance	103	102	99	95	91	205	335
Loss on sale of securities, net	-	-	(802)	(268)	(455)	-	(455)
Gain on disposal of fixed assets	-	20	11	-	-	20	19
Other income	166	130	132	132	134	296	267
Total noninterest income	2,560	2,482	1,014	2,014	1,737	5,042	3,893
Noninterest expense
Compensation and benefits	4,693	4,878	4,558	4,603	4,461	9,571	9,113
Occupancy and equipment	837	841	798	882	856	1,678	1,748
Data processing, technology, and communications	1,119	1,039	985	923	942	2,158	1,811
Professional fees	96	110	56	58	111	206	307
Marketing	102	160	104	151	206	262	432
Other	844	826	942	790	815	1,670	1,449
Total noninterest expense	7,691	7,854	7,443	7,407	7,391	15,545	14,860
Income before provision for income taxes	2,480	1,629	961	1,853	1,287	4,109	3,000
Income tax expense	538	391	185	409	274	929	617
Net income available to common shareholders	$ 1,942	$ 1,238	$ 776	$ 1,444	$ 1,013	$ 3,180	$ 2,383
Addback securities losses, net of tax	-	-	648	209	358	-	358
Adjusted net income (nonGAAP)	1,942	1,238	1,424	1,653	1,371	3,180	2,741
Weighted average common shares - basic	7,851	7,837	7,826	7,834	7,825	7,844	7,816
Weighted average common shares - diluted	8,260	8,217	8,164	8,149	8,142	8,273	8,173
Basic income per common share	$ 0.25	$ 0.16	$ 0.10	$ 0.18	$ 0.13	$ 0.41	$ 0.30
Diluted income per common share	$ 0.24	$ 0.15	$ 0.10	$ 0.18	$ 0.12	$ 0.39	$ 0.29
Adjusted basic net income per common share (nonGAAP)	$ 0.25	$ 0.16	$ 0.18	$ 0.21	$ 0.18	$ 0.41	$ 0.35
Adjusted diluted net income per common share (nonGAAP)	$ 0.24	$ 0.15	$ 0.17	$ 0.20	$ 0.17	$ 0.39	$ 0.34

Net income for the three months ended June 30, 2024, was $1.9 million, or $0.24 per diluted common share, compared to $1.0 million, or $0.12 per diluted common share, for the three months ended June 30, 2023. On an adjusted basis, second quarter of 2023 diluted EPS was $0.17, which includes adding back the impact of securities losses, after tax. Net income for the six months ended June 30, 2024, totaled $3.2 million, or $0.39 per diluted common share, compared to $2.4 million, or $0.29 per diluted common share. On an adjusted basis, diluted EPS was $0.34 per diluted common share, for the six months ended June 30, 2023, which includes adding back the impact of securities losses, after tax.

Noninterest income for the three months ended June 30, 2024, was $2.6 million, an increase of $0.9 million from $1.7 million for the same period in 2023. Noninterest income was primarily driven by mortgage banking income and totaled $1.4 million in the second quarter of 2024 compared to $1.1 million in the second quarter of 2023. This increase is the result of more sales volume from new producers hired in the last six months and a diversification of our third party originated (TPO) base. In the second quarter of 2023, the Company recognized a loss of $455 thousand on certain securities sold, and no such losses in 2024.

For the six months ended June 30, 2024, noninterest income increased by $1.2 million, driven by improved mortgage banking income of $812 thousand discussed above and no securities loss in 2024 compared to the $455 thousand loss recorded in 2023.

Noninterest expense for the three months ended June 30, 2024, was $7.7 million, an increase of $0.3 million from $7.4 million for the same period in 2023. This increase in expense was primarily driven by an increase in compensation and benefits of $232 thousand due primarily to mortgage commissions and employee medical benefits, and an increase in data processing and technology of $177 thousand related to core processing cost and other software maintenance. These increases in expense were partially offset by declines in professional fees expense and marketing expense.

Noninterest expense, for the six months ended June 30, 2024, was $15.5 million and increased $685 thousand over the same period one year ago. This increase in noninterest expense was primarily related to compensation and benefits of $458 thousand attributable to mortgage commissions and an increase in employee medical benefits, and an increase in data processing and technology totaling $347 thousand resulting from higher core processor cost and software expense. These increases were partially offset by lower professional fees and marketing cost.

NET INTEREST INCOME AND MARGIN – Unaudited - QTR

	For the Three Months Ended
	June 30, 2024			June 30, 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	$ 29,743	$ 379	5.13 %	$ 60,416	$ 750	4.98 %
Investment securities	168,826	1,875	4.47 %	160,245	1,371	3.43 %
Nonmarketable equity securities	2,037	40	7.82 %	2,186	31	5.75 %
Loans held for sale	24,965	446	7.19 %	16,864	295	7.00 %
Loans	736,944	10,300	5.62 %	677,668	8,543	5.06 %
Total interest-earning assets	962,515	13,040	5.45 %	917,379	10,990	4.81 %
Allowance for credit losses	(8,508)			(8,073)
Noninterest-earning assets	79,658			77,561
Total assets	$ 1,033,665			$ 986,867

Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$ 140,821	$ 247	0.70 %	$ 138,167	$ 132	0.38 %
Savings & money market	366,431	2,712	2.98 %	314,091	1,860	2.37 %
Time deposits	179,539	1,694	3.79 %	139,501	884	2.54 %
Total interest-bearing deposits	686,792	4,652	2.72 %	591,759	2,876	1.95 %
FHLB advances and other borrowings	26,917	356	5.32 %	51,207	532	4.17 %
Subordinated debentures	25,737	366	5.72 %	25,703	361	5.62 %
Total interest-bearing liabilities	739,446	5,374	2.92 %	668,669	3,769	2.26 %
Noninterest bearing deposits	207,573			238,295
Other liabilities	13,971			13,802
Shareholders' equity	72,674			66,101
Total liabilities and shareholders' equity	$ 1,033,665			$ 986,867

Net interest income (tax equivalent) / interest rate spread		$ 7,666	2.53 %		$ 7,221	2.54 %
Net Interest Margin			3.20 %			3.16 %

Cost of funds, including noninterest-bearing deposits			2.28 %			1.67 %

Net interest income for the three months ended June 30, 2024, was $7.7 million compared to $7.2 million for the three months ended June 30, 2023. This increase was the result of a larger increase in interest income of $2.050 million than the increase in interest expense of $1.605 million. This resulted in an improved net interest margin to 3.20% from 3.16% one year ago. All categories of interest-earning assets reflected higher yields as was the case for all categories of interest-bearing liabilities. In addition, the total cost of funds, including noninterest-bearing deposits, increased to 2.28% in the second quarter of 2024, compared to 1.67% in the second quarter of 2023.

NET INTEREST INCOME AND MARGIN – Unaudited - YTD

	For the Six Months Ended
	June 30, 2024			June 30, 2023
	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	$ 29,419	$ 645	4.40 %	$ 50,345	$ 1,100	4.41 %
Investment securities	169,084	3,846	4.56 %	161,627	2,714	3.39 %
Nonmarketable equity securities	2,093	65	6.21 %	2,100	44	4.27 %
Loans held for sale	20,025	700	7.01 %	13,289	450	6.83 %
Loans	723,620	20,131	5.58 %	673,229	16,647	4.99 %
Total interest-earning assets	944,241	25,388	5.39 %	900,590	20,955	4.69 %
Allowance for loan losses	(8,450)			(7,955)
Noninterest-earning assets	79,851			78,225
Total assets	$ 1,015,641			$ 970,860

Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$ 142,005	$ 538	0.76 %	$ 139,746	$ 237	0.34 %
Savings & money market	352,219	5,156	2.94 %	308,178	3,277	2.14 %
Time deposits	176,923	3,290	3.73 %	124,811	1,284	2.07 %
Total interest-bearing deposits	671,147	8,984	2.68 %	572,735	4,798	1.69 %
FHLB advances and other borrowings	28,538	793	5.57 %	47,839	963	4.06 %
Subordinated debentures	25,731	737	5.75 %	25,699	699	5.48 %
Total interest-bearing liabilities	725,416	10,514	2.91 %	646,273	6,460	2.02 %
Noninterest bearing deposits	205,301			245,738
Other liabilities	13,694			13,658
Shareholders' equity	71,230			65,191
Total liabilities and shareholders' equity	$ 1,015,641			$ 970,860

Net interest income (tax equivalent) / interest rate spread		$ 14,874	2.49 %		$ 14,495	2.68 %
Net Interest Margin			3.16 %			3.25 %

Cost of funds,including noninterest bearing deposits			2.27 %			1.46 %

Net interest income for the six months ended June 30, 2024, totaled $14.9 million compared to $14.5 million in the first six months of 2023, an increase of $0.4 million. The net interest margin was 3.16% for the first six months of 2024 compared to 3.25% for the same period in 2023. All of the yields on interest-earning assets, except fed funds sold and interest-bearing deposits, and interest-bearing liabilities have increased from the same period one year ago. The total cost of funds, including noninterest-bearing deposits was 2.27% compared to 1.46% in 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Assets
Cash and cash equivalents:
Cash and due from banks	$ 5,669	$ 5,482	$ 4,354	$ 3,158	$ 3,748
Interest-bearing deposits with banks	41,391	36,173	17,590	32,835	55,496
Total cash and cash equivalents	47,060	41,655	21,944	35,993	59,244
Investment securities:
Investment securities available for sale	173,298	171,075	171,400	162,573	158,143
Other investments	2,788	2,548	1,078	2,025	2,563
Total investment securities	176,087	173,623	172,478	164,598	160,706
Mortgage loans held for sale	25,776	18,307	7,156	17,506	12,485
Loans receivable:
Loans	739,433	725,234	705,672	706,596	694,130
Less allowance for credit losses	(8,498)	(8,497)	(8,393)	(8,430)	(8,229)
Loans receivable, net	730,935	716,737	697,279	698,166	685,901
Property and equipment, net	22,040	22,185	22,298	22,505	22,588
Mortgage servicing rights	12,680	12,226	11,638	11,394	10,893
Bank owned life insurance	18,396	18,293	18,191	18,092	17,997
Deferred income taxes	7,612	7,990	7,775	9,184	8,534
Other assets	17,809	16,600	15,398	14,283	14,248
Total assets	1,058,395	1,027,616	974,157	991,721	992,596
Liabilities
Deposits	$ 899,799	$ 881,309	$ 858,597	$ 861,229	$ 830,085
Federal Home Loan Bank advances	40,000	35,000	5,000	25,000	45,000
Federal funds and repurchase agreements	408	-	307	81	11,910
Subordinated debentures	15,428	15,421	15,413	15,405	15,397
Junior subordinated debentures	10,310	10,310	10,310	10,310	10,310
Reserve for unfunded commitments	364	398	407	488	740
Other liabilities	17,590	13,070	12,727	13,186	12,616
Total liabilities	983,899	955,508	902,761	925,699	926,058
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	(5,216)	(4,965)	(4,821)	(4,750)	(4,666)
Nonvested restricted stock	(2,463)	(2,900)	(2,518)	(2,387)	(2,542)
Additional paid-in capital	55,645	56,134	55,471	55,068	54,972
Retained earnings	36,928	34,986	33,748	32,972	31,626
Accumulated other comprehensive (loss) income	(10,487)	(11,236)	(10,573)	(14,970)	(12,941)
Total shareholders' equity	74,496	72,108	71,396	66,022	66,538
Total liabilities and shareholders' equity	$ 1,058,395	$ 1,027,616	$ 974,157	$ 991,721	$ 992,596

First Reliance cash and cash equivalents totaled $47.1 million at June 30, 2024, compared to $41.7 million at March 31, 2024. Cash with the Federal Reserve Bank totaled $41.3 million compared to $36.2 million at March 31, 2024.

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 $173.3 million and $171.1 million, at June 30, 2024 and March 31, 2024, respectively. The unrealized loss recorded on these securities totaled $13.9 million as of June 30, 2024, compared to $14.9 million at March 31, 2024, a decrease in the unrealized loss during the second quarter of $1.0 million (before taxes).

As of June 30, 2024, deposits increased by $18.5 million, or 8.4% 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 10 for detail).

The Company had $40.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at June 30, 2024, up from $35.0 million at March 31, 2024. The Company had remaining credit availability in excess of $257.7 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to approximately $34.7 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)	2024	2024	2023	2023	2023
Voting common shares outstanding	8,819	8,785	8,772	8,754	8,752
Treasury shares outstanding	(743)	(649)	(633)	(623)	(612)
Total common shares outstanding	8,076	8,136	8,139	8,131	8,140

Book value per common share	$ 9.22	$ 8.86	$ 8.77	$ 8.12	$ 8.17
Tangible book value per common share⁽⁵⁾	$ 9.13	$ 8.77	$ 8.68	$ 8.02	$ 8.08

Stock price:
High	$ 8.30	$ 8.65	$ 9.00	$ 7.40	$ 8.80
Low	$ 7.60	$ 7.70	$ 6.91	$ 6.30	$ 6.00
Period end	$ 7.90	$ 8.15	$ 8.57	$ 7.20	$ 6.37

ASSET QUALITY MEASURES – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Nonperforming Assets
Commercial
Owner occupied RE	$ 49	$ -	$ -	$ -	$ -
Non-owner occupied RE	-	-	86	86	82
Construction	62	-	-	-	-
Commercial business	12	12	99	164	159
Consumer
Real estate	46	48	-	-	-
Home equity	-	-	-	145	145
Construction	-	-	-	-	-
Other	66	52	8	14	94
Nonaccruing loan modifications	-	56	56	65	65
Total nonaccrual loans	$ 235	$ 168	$ 249	$ 474	$ 545
Other assets repossessed	75	114	47	45	-
Total nonperforming assets	$ 310	$ 282	$ 296	$ 519	$ 545
Nonperforming assets as a percentage of:
Total assets	0.03 %	0.03 %	0.03 %	0.05 %	0.05 %
Total loans receivable	0.04 %	0.04 %	0.04 %	0.07 %	0.08 %
Accruing loan modifications	$ 460	$ 970	$ 947	$ 1,027	$ 1,059

	Three Months Ended
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Allowance for Credit Losses
Balance, beginning of period	$ 8,497	$ 8,393	$ 8,430	$ 8,229	$ 8,052
CECL adoption	-	-	-	-	-
Loans charged-off	102	195	108	41	145
Recoveries of loans previously charged-off	14	82	109	31	28
Net charge-offs (recoveries)	88	113	(1)	10	117
Provision for credit losses	89	217	(38)	211	294
Balance, end of period	$ 8,498	$ 8,497	$ 8,393	$ 8,430	$ 8,229
Allowance for credit losses to gross loans receivable	1.15 %	1.17 %	1.19 %	1.19 %	1.19 %
Allowance for credit losses to nonaccrual loans	3616.17 %	5057.74 %	3370.68 %	1778.48 %	1509.91 %

Asset quality remained consistent during the second quarter of 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 1.15% at June 30, 2024, compared to 1.17% at March 31, 2024, and 1.19% at December 31, 2023. The allowance for credit losses was increased by a provision for credit losses of $89 thousand offset by net charge-offs of $88 thousand, during the second quarter of 2024. In the second quarter of 2023, the Company experienced net charge-offs of $117 thousand, and increased the ACL with a provision for credit losses of $294 thousand. The ACL was 1.19% of total loans at June 30, 2023.

Footnotes to table located at the end of this release.

LOAN COMPOSITION – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Commercial real estate	$ 450,936	$ 434,743	$ 433,687	$ 430,825	$ 415,616
Consumer real estate	188,759	184,969	177,102	172,702	168,227
Commercial and industrial	76,149	77,023	63,946	67,740	71,345
Consumer and other	23,589	28,499	30,937	35,329	38,942
Total loans, net of deferred fees	739,433	725,234	705,672	706,596	694,130
Less allowance for credit losses	8,498	8,497	8,393	8,430	8,229
Total loans, net	$ 730,935	$ 716,737	$ 697,279	$ 698,166	$ 685,901

DEPOSIT COMPOSITION – Unaudited

	As of
	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
($ in thousands)	2024	2024	2023	2023	2023
Noninterest-bearing	$ 220,330	$ 212,083	$ 210,604	$ 231,672	$ 230,153
Interest-bearing:
DDA and NOW accounts	132,186	139,229	144,039	143,393	135,071
Money market accounts	325,769	307,696	289,158	281,325	264,130
Savings	42,479	44,191	45,558	47,422	51,029
Time, less than $250,000	128,869	125,248	121,035	117,989	113,536
Time, $250,000 and over	50,166	52,862	48,203	39,428	36,166
Total deposits	$ 899,799	$ 881,309	$ 858,597	$ 861,229	$ 830,085

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 $1.058 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
[email protected]

SOURCE First Reliance Bancshares, Inc.