FLORENCE, S.C., Oct. 11 /PRNewswire-FirstCall/ -- First Reliance
Bancshares, Inc., (OTC:FSRL) (BULLETIN BOARD: FSRL) , the holding
company for First Reliance Bank, today announced 3rd quarter 2008
unaudited net income of $765,178, an increase of 31%. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO ) Unaudited
net income for the three months ended September 30, 2008 was
$765,178, compared to $584,877 reported in the prior-year period.
Earnings benefited from growth in net interest income and reduction
in non interest expense. Net interest income increased to $4.9
million in the third quarter of 2008 over $4.7 million reported the
prior year period. Non interest expense decreased 3%, to $4.5
million in the third quarter of 2008. Diluted earnings per share
were $0.21, compared to the $0.17 reported in the prior year
period. Unaudited net income for the nine months ended September
30, 2008 was $2.3 million, an increase of 3%, or $0.63 per diluted
share, compared to $2.2 million, or $0.62 per diluted share, for
the nine months ended September 30, 2007. Net interest income
increased to $14.7 million in the nine months ended September 30,
2008, over $13.8 million reported the prior year period, while
non-interest income was $3.9 million for both periods. As of
September 30, 2008, total assets were $573.7 million, an increase
of $48.9 million or 9%, over the $524.8 million reported for
September 30, 2007. Loans increased 6% to $459.7 million, while
deposits increased to $447.6 million, up 2% from $440.8 million
reported for the prior year period. "In this difficult economic
environment, we are not without our challenges; our nonperforming
assets to total asset ratio has increased from 0.90 to 1.70 as
September 30, 2008," commented Jeff Paolucci, Senior Vice President
and CFO of First Reliance Bank. "However, we have taken an
aggressive approach to increasing our loan reserves from 1.09% of
loans receivable to 1.35%. Even though we have made aggressive
provisions for loan losses throughout the year, we continue to
exceed our earnings estimate." "It is clear from the positive
results of the 3rd quarter that our focus on profitable growth
backed by conservative business decisions has been a rewarding
business strategy for our bank," commented Rick Saunders, president
and CEO of First Reliance Bank. "In a challenging economic
environment where many companies have reported negative growth in
earnings, we are pleased to report positive growth in earnings. Our
conservative investment practices have never included risks related
to Fannie Mae or Freddie Mac or any other high risk mortgage backed
securities. In addition, we do not make sub-prime mortgage loans
and have no exposure in this area. While other banks have suffered
the negative effects of these products and practices, First
Reliance's conservative and sound business and banking practices,
have allowed us to produce great earnings and position ourselves
for future expansion and growth throughout the industry turmoil."
"First Reliance is a financially sound and well capitalized company
with a solid deposit base, and 98% of our customers are satisfied
with our excellent service and convenience. We are a safe, strong,
and profitable South Carolina community bank specializing in
relationship banking with individuals and businesses and we have a
long and bright future to look forward to." Jeff Paolucci, Senior
Vice President and CFO of First Reliance Bank, commented, "First
Reliance is financially strong and well capitalized. First Reliance
remains in every measurable category a "well capitalized"
institution under all regulatory standards. In fact, our capital
ratios are well in excess of all regulatory "well capitalized"
thresholds, which we feel is a significant accomplishment
considering the state of the economy and the problems facing other
institutions. Our strong capital, liquidity, and focus on closely
monitoring and controlling expenses has increased our lending
capabilities and provided us the opportunity to expand our
franchise. During the first quarter of 2009, we will further
enhance our commitment to be Easy To Do Business With(TM) by
opening a new branch in West Columbia, SC. Additional 2009
expansion efforts include a branch on Forest Drive in Columbia,
SC." "First Reliance is a strong and viable company committed to
addressing issues quickly and efficiently as we stay focused on
building a strong company for the future. As we continue to move
forward in this difficult economic environment, we will continue to
carefully and cautiously monitor our banking and business practices
to prevent any potential and unforeseen challenges. Our proactive
and aggressive risk management systems and emphasis on credit
quality have resulted in our strong asset quality, which continues
to improve. In addition, our footprint expands into different
geographic markets throughout the state of South Carolina thereby
reducing the credit risk associated with operating in one
location." "We have realized several positive accomplishments this
quarter," stated Rick Saunders, president and CEO. "We are pleased
to announce that for the past 3 consecutive years, we have been
named One of the Best Places to Work in SC(TM). Providing a great
place to work, allows us to recruit and develop great, talented
people who are aligned with our company's vision, mission, and
values. It is clear that the quality of our work environment has a
direct impact on our customers' experience, due to our recent
customer satisfaction score of 98%. We intend to continue to
increase our level of customer satisfaction by making every effort
to meet and exceed our customers' expectations. It is our goal to
provide the utmost convenience in products and services and
excellent customer service." "Throughout 2008, we will continue to
focus on growing core deposits and leveraging our customer loyalty
ratings, while improving our operating efficiencies and managing
operating expenses. As we continue to diligently maintain
disciplined risk and credit management practices, I am confident
that we will continue to attain consistent and sustainable growth."
ABOUT FIRST RELIANCE BANK First Reliance Bank, founded in 1999, has
assets of approximately $574 million, and employs over 145 highly
talented associates. The bank serves Columbia, Charleston,
Greenville and Florence markets in South Carolina. The bank has
been recognized for its success including being the only company
ever to be named to The Top 25 Fastest Growing Companies(TM) in
South Carolina four times including 2002, 2004, 2005, and 2006 (SC
Chamber/Elliott Davis). In June 2007, the bank was added to the
Palmetto 25, a list of S.C.'s largest publicly held companies. In
2006, 2007, and 2008 the bank was also recognized as One of the
Best Places to Work in South Carolina by the SC Chamber of
Commerce. First Reliance Bank offers a unique Hometown Heroes
package of benefits to serve those who are serving our communities,
Totally FREE Checking, Totally FREE Business, FREE Coin Machines, a
Nationwide NO FEE ATM Network, and a 5 Way Mortgage Service
Promise. It also offers 8-8 Extended Hours in all of their
Florence, Mt. Pleasant, and Lexington locations and is open on most
traditional bank holidays. Its Easy to Do Business With(TM)
standard has earned the young bank a customer satisfaction rating
of 98% (Lamothe & Associates, Inc., Research Firm). First
Reliance Bank is traded as FSRL.OB. This press release contains
forward-looking statements about branch openings within the meaning
of the Securities Litigation Reform Act of 1995. Forward-looking
statements give our expectations or forecasts of future events. Any
or all of our forward-looking statements here or in other
publications may turn out to be incorrect. They can be affected by
inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining
our actual future results. Consequently, no forward- looking
statements can be guaranteed. Our actual results may vary
materially, and there are no guarantees about the performance of
our stock. We undertake no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future results or otherwise. You are advised, however, to consult
any future disclosures we make on related subjects in our reports
to the SEC. Contact Jeffrey A. Paolucci, Senior Vice President and
Chief Financial Officer, (843) 674-3250 Media Contact: Jeff
Paolucci, Senior Vice President Ashleigh Miles, PR & and CFO
Advertising Manager First Reliance Bank First Reliance Bank (843)
674-3250 (843) 789-1419 First Reliance Bancshares, Inc.
Consolidated Reports of Income Three Three Nine Months Nine Months
Months Months Ended Ended Ended Ended September September September
September 30,2008 30,2007 30,2008 30,2007 (Unaudited) (Unaudited)
(Unaudited)(Unaudited) Interest Income Loans and Fees 25,895,022
25,745,192 8,234,706 9,234,300 Investment Securities Taxable
1,025,605 638,647 349,641 192,571 Tax exempt 981,013 552,593
325,521 199,636 Federal funds sold 54,502 384,420 42,662 48,010
Other interest income 212,941 121,958 98,977 34,078 Total
28,169,083 27,442,810 9,051,507 9,708,595 Interest Expense Time
deposits $100,000 and over 5,524,539 5,062,204 1,491,623 1,909,567
Other deposits 5,128,023 7,218,069 1,722,955 2,613,580 Other
interest expense 2,817,167 1,412,171 932,809 488,234 Total
13,469,729 13,692,444 4,147,387 5,011,381 - Net Interest Income
14,699,354 13,750,366 4,904,120 4,697,214 Provision for loan losses
1,757,364 869,397 609,967 408,961 Net Interest Income after
provision 12,941,990 12,880,969 4,294,153 4,288,253 Noninterest
Income Service charges on deposit accounts 1,477,950 1,394,945
548,098 486,508 Gain on sale of mortgage loans 1,445,876 1,635,949
319,519 519,818 Brokerage fees 112,242 124,220 5,685 38,351 Income
(Expense) from Bank Owned Life Insurance 340,376 3,820 110,811
(786) Other charges, commissions and fees 361,643 259,087 123,548
96,299 Gain (Loss) on sale of securities available for sale - 4,187
- (16,187) Gain on sale of other real estate 700 16,104 700 - Gain
on sale of fixed assets 7,091 5,996 7,091 - Other 147,574 437,163
46,705 140,557 Total 3,893,452 3,881,471 1,162,157 1,264,560
Noninterest Expense Salaries and benefits 8,343,153 7,922,140
2,589,777 2,694,710 Occupancy 1,149,437 979,034 418,005 323,142
Furniture and equipment related 645,114 607,784 222,624 188,021
Other operating 3,803,663 4,107,690 1,248,888 1,418,732 Total
13,941,367 13,616,648 4,479,294 4,624,605 Income before tax
2,894,075 3,145,792 977,016 928,208 Income tax expense 619,353
946,000 211,838 343,331 Net Income 2,274,722 2,199,792 765,178
584,877 Basic earnings per share 0.65 0.64 0.22 0.17 Diluted
earnings per share 0.63 0.62 0.21 0.17 First Reliance Bancshares,
Inc. Balance Sheet September 30 September 30 December 31 2008 2007
2007 (Unaudited) (Unaudited) Audited Assets: Cash and Cash
Equivalents Cash and Due From Banks 5,928,325 12,303,957 7,164,650
Federal funds sold - - - Total cash and cash equivalents 5,928,325
12,303,957 7,164,650 Investment securities Securities available for
sale 56,982,931 34,101,361 58,580,313 Nonmarketable equity
securities 3,922,200 1,905,400 3,930,400 Investment in trust
310,000 310,000 - Total investment securities 61,215,131 36,316,761
62,510,713 Loans held for sale 11,226,920 9,008,486 19,600,850
Loans receivable 459,686,752 434,389,319 468,137,690 Less allowance
for loan losses (6,210,754) (4,736,321) (5,270,607) Loans, net
453,475,998 429,652,998 462,867,083 Premises, furniture, and
equipment, net 23,770,377 20,828,686 22,233,746 Accrued interest
receivable 3,049,352 2,648,767 3,092,767 Other real estate owned
293,700 134,349 196,950 Cash surrender value life insurance
10,880,649 10,436,829 10,540,273 Other assets 3,833,230 3,444,406
3,497,180 Total Assets 573,673,682 524,775,239 591,704,212
Liabilities: Deposits: Noninterest bearing transaction accounts
42,917,049 42,917,750 43,542,528 Interest bearing transaction
accounts 27,159,758 53,403,111 39,450,393 Savings 121,475,590
82,138,499 85,819,481 Time deposits $100,000 and over 131,809,645
150,067,645 169,825,252 Other time deposits 124,196,593 112,300,558
110,860,061 Total deposits 447,558,635 440,827,563 449,497,715
Securities sold under agreements to repurchase 7,195,414 8,568,084
7,927,754 Federal Funds Purchased 2,170,000 3,000,000 13,359,000
Advances from Federal Home Loan Bank 63,500,000 24,000,000
69,000,000 Note Payable 3,000,000 - 3,000,000 Junior subordinated
debentures 10,310,000 10,310,000 10,310,000 Accrued interest
payable 583,346 913,244 767,577 Other liabilities 1,401,244 752,981
814,262 Total Liabilities 535,718,639 488,371,872 554,676,308
Shareholders' Equity: Common Stock 35,337 34,874 34,946 Restricted
Stock (197,635) (147,729) (152,762) Capital Surplus 26,064,686
25,808,044 25,875,012 Treasury Stock (155,259) (145,198) (145,198)
Retained Earnings 13,488,094 11,057,547 11,417,275 Accumulated
other comprehensive income (1,280,180) (204,171) (1,369) Total
Shareholders Equity 37,955,043 36,403,367 37,027,904 Total
Liabilities and Shareholders Equity 573,673,682 524,775,239
591,704,212 http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO
http://photoarchive.ap.org/ DATASOURCE: First Reliance Bancshares,
Inc. CONTACT: Jeff Paolucci, Senior Vice President and CFO,
+1-843-674-3250, , or Ashleigh Miles, PR & Advertising Manager,
+1-843-789-1419, , both of First Reliance Bank Web site:
http://www.firstreliance.com/
Copyright