- Assets and Deposits Increased more than $11 million in 2008
FLORENCE, S.C., Jan. 29 /PRNewswire-FirstCall/ -- First Reliance
Bancshares (OTC:FSRL) (BULLETIN BOARD: FSRL) , the parent company
of First Reliance Bank, today reported it continues to be a strong
and healthy community bank with capital ratios above what is
required to be considered 'well-capitalized' for banks. On January
9, 2009, First Reliance Bancshares, Inc. was advised by the U.S.
Department of Treasury that the company had received preliminary
approval to participate in the Treasury Department's TARP Capital
Purchase Program, a voluntary program available to financial
institutions that satisfy criteria established by the Treasury
Department and federal banking regulators. Subject to final
regulatory approval and upon completion of the transaction, First
Reliance will receive $14.9 million from the Treasury Department in
exchange for the issuance of $14.9 million in shares of senior
preferred stock and warrants to purchase additional shares of
senior preferred stock. First Reliance expects the closing to occur
prior to the end of the first quarter. Net income for the year
ended December 31, 2008 was $625,632 compared to $2.6 million
earned for the year ended December 31, 2007. Diluted earnings per
share for 2008 totaled $0.18 compared to $0.72 earned for the year
ended December 31, 2007. Despite continued margin compression
within the banking industry, its net interest income decreased a
modest $162,932 to $18.9 million, compared to $19.1 million
reported in 2007. Earnings for 2008 reflect provisions of $4.9
million for the allowance of loan and lease losses in 2008. As of
December 31, 2008, total assets were $603.4 million, an increase of
$11.7 million over $591.7 million reported for December 31, 2007.
Total loans and leases totaled $469 million as of December 31,
2008, reflecting an increase of $852,512, compared to the December
31, 2007 balance. Total deposits increased $11.6 million, from
$449.5 million reported at the prior year end. Management continues
its focus on increasing core deposits as evidenced by the reduction
in time deposits ($100,000 and over) by $32.7 million from $169.8
million reported on Dec. 31, 2007. For the fourth quarter of 2008,
First Reliance reported a net loss totaling $1.6 million, or $(.47)
per diluted share, compared with $359,731 or $.10 per diluted
share, earned during the fourth quarter of 2007. Earnings were
primarily impacted by provisions of $3.2 million for the allowance
for loan losses. "2008 was one of the most economically challenging
years our country and the banking industry have ever experienced,
and it has offered significant challenges to First Reliance as
well," said Rick Saunders, CEO. "Our loan portfolio has not escaped
the negative effects of the difficult financial downturn in the
coastal region. A good portion of our non performing loans are
related to the hard hit construction industry and declining
property values in this area. As a result we set aside additional
reserves in the fourth quarter of 2008 and closed our Myrtle Beach
loan center to proactively prepare us in the event of further
unforeseen economic deterioration. However, we continue to see
benefits from our bank's strong geographic diversity with solid
loan quality in our Florence and Columbia markets." "We are proud
of our community banking roots focused on developing strong
customer relationships and earning their loyalty. Often we hear
customers say ... every banker wants your business when times are
good, it's the best banker that sticks with you through the
struggle when times are tough. Our job is to do what community
banks do best, understand the challenges our customers face, and
work with them in good times and in bad times," said Saunders.
"This year 85 percent of our customers said they would refer us to
family or a friend and 98 percent of our customers said we are
great at customer service. This is evidence that our Easy To Do
Business With(TM) style of banking is what customers want. In 2008,
we introduced a unique program called Hometown Heroes, which
recognizes and provides special financial products and rewards to
heroes in our community -- teachers, police, firefighters,
military, not-for-profit and medical professionals, people who help
us and protect us every day. This program is our way of saying
thank you and it has been a great success. We have also been
recognized by the South Carolina State Housing Authority as Lender
of the Year. This is an achievement that reflects our commitment to
first time homebuyers and the importance of homeownership," he
said. "At First Reliance Bank our Associates are committed to
providing our customers with great service. Our Associates enjoy
working here and truly believe they can make a positive difference
with every person they touch. We are very proud of our track record
for being named One of the Best Places to Work in South Carolina
for the last three years. Our Associates also understand that
sometimes it takes sacrifice in order to build a stronger future
and in support of this commitment, our team and I will forgo 2008
incentive compensation," Saunders said. "Looking forward in 2009 we
will continue to introduce products and services aimed at helping
our customers be successful. In every economic business cycle, high
or low there are opportunities created. We see the opportunities
everyday as we talk to our customers in our local markets and will
do our part in stimulating the economy. We will open a new office
in Columbia this spring and we are already experiencing an 80%
growth in consumer mortgage application this year. In our home
branches in Florence we continue to grow market share giving our
company a strong foundation for continued growth." "While the
issues facing our economy are difficult, we continue to see
opportunity and will work together to serve our customers and
fulfill our purpose -- to make a positive difference in every life
we touch." ABOUT FIRST RELIANCE BANK The Company's one bank
subsidiary, First Reliance, has been recognized for its success
including being the only bank ever to be named to The Top 25
Fastest Growing Companies(TM) in South Carolina four times (Elliott
Davis). First Reliance Bank operates in five branch locations and a
loan production office. Its Easy To Do Business With(TM) products
and services include: Totally FREE Checking, Totally FREE Business
Checking, FREE Coin Machines, a Retail Service Guaranty, and Five
Way Mortgage Service Promise, a Worldwide NO FEE ATM Network, and
8-8 Extended Hours in their Florence, Lexington, and Mt. Pleasant
locations. Based in Florence, South Carolina, First Reliance
Bancshares, Inc., is a bank holding company with approximately $603
million in consolidated assets as of December 31, 2008. First
Reliance Bank, which was opened in 1999, is the Company's sole
operating subsidiary. The bank has two branch locations, a
Technology Center, and a Learning Center in Florence, SC. In
addition, the bank's aggressive statewide growth strategy includes
current branches in Lexington, Mount Pleasant and downtown
Charleston, SC, and a Loan Production office in Greenville, SC.
Additional branch expansions include new sites located in
Charleston, the Midlands Region, and the Upstate Region. The
Company's stock is traded on the OTC Bulletin Board under the
symbol FSRL.OB. Information about the Company is available on the
company's website at http://www.firstreliance.com/ . 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. Media Contacts: F.R. (Rick) Saunders Jr., President and
CEO First Reliance Bank (843) 674-3001 Pamela Rhoads, VP Customer
Experience First Reliance Bank (843) 674-3261 First Reliance
Bancshares, Inc. Consolidated Balance Sheet December 31 December 31
Increase / 2008 2007 (Decrease) (Unaudited) Audited Assets: Cash
and Cash Equivalents Cash and Due From Banks $5,451,607 $7,164,650
-23.91% Federal funds sold 257,000 - Total cash and cash
equivalents 5,708,607 7,164,650 -20.32% Investment securities
Securities available for sale 76,310,816 58,580,313 30.27%
Nonmarketable equity securities 4,574,700 3,930,400 16.39% Total
investment securities 80,885,516 62,510,713 29.39% Loans held for
sale 9,589,081 19,600,850 -51.08% Loans receivable 468,990,202
468,137,690 0.18% Less allowance for loan losses (8,223,899)
(5,270,607) 56.03% Loans, net 460,766,303 462,867,083 -0.45%
Premises, furniture, and equipment, net 28,612,022 22,233,746
28.69% Accrued interest receivable 2,653,260 3,092,767 -14.21%
Other real estate owned 379,950 196,950 92.92% Cash surrender value
life insurance 10,986,484 10,540,273 4.23% Other assets 3,852,660
3,497,180 10.16% Total Assets $603,433,883 $591,704,212 1.98%
Liabilities: Deposits: Noninterest bearing transaction accounts
$39,467,609 $43,542,528 -9.36% Interest bearing transaction
accounts 34,708,951 39,450,393 -12.02% Savings 110,629,005
85,819,481 28.91% Time deposits $100,000 and over 137,126,182
169,825,252 -19.25% Other time deposits 139,203,637 110,860,061
25.57% Total deposits 461,135,384 449,497,715 2.59% Securities sold
under agreements to repurchase 8,197,451 7,927,754 3.40% Federal
Funds Purchased - 13,359,000 -100.00% Advances from Federal Home
Loan Bank 78,000,000 69,000,000 13.04% Note Payable 6,950,000
3,000,000 131.67% Junior subordinated debentures 10,310,000
10,310,000 0.00% Accrued interest payable 623,330 767,577 -18.79%
Other liabilities 791,960 814,262 -2.74% Total Liabilities
566,008,125 554,676,308 2.04% Shareholders' Equity: Common Stock
35,250 34,946 0.87% Restricted Stock (207,653) (152,762) 35.93%
Capital Surplus 26,120,460 25,875,012 0.95% Treasury Stock
(159,777) (145,198) 10.04% Retained Earnings 11,839,004 11,417,275
3.69% Accumulated other comprehensive income (201,526) (1,369)
14620.67% Total Shareholders Equity 37,425,758 37,027,904 1.07%
Total Liabilities and Shareholders Equity $603,433,883 $591,704,212
1.98% First Reliance Bancshares, Inc. Consolidated Reports of
Income For the Year Ended December 31, Increase / 2008 2007
(Decrease) (Unaudited) Audited Interest Income Loans and Fees
$33,150,366 $35,325,242 -6.16% Investment Securities Taxable
1,519,466 892,277 70.29% Tax exempt 1,298,612 780,191 66.45%
Federal funds sold 56,343 390,944 -85.59% Other interest income
217,931 151,833 43.53% Total 36,242,718 37,540,487 -3.46% Interest
Expense Time deposits $100,000 and over 6,714,460 7,002,414 -4.11%
Other deposits 6,905,884 9,765,871 -29.29% Other interest expense
3,678,028 1,664,924 120.91% Total 17,298,372 18,433,209 -6.16% Net
Interest Income 18,944,346 19,107,278 -0.85% Provision for loan
losses 4,934,912 1,643,100 200.34% Net Interest Income after
provision 14,009,434 17,464,178 -19.78% Noninterest Income Service
charges on deposit accounts 2,018,725 1,901,758 6.15% Gain on sale
of mortgage loans 1,700,162 2,173,140 -21.76% Brokerage fees
146,343 149,268 -1.96% Income from Bank Owned Life Insurance
446,211 406,237 9.84% Other charges, commissions and fees 477,418
372,272 28.24% Gain on sale of securities available for sale -
5,996 -100.00% Gain on sale of other real estate 22,000 29,186
-24.62% Gain on sale of fixed assets 7,091 59,318 -88.05% Other
190,854 204,624 -6.73% Total 5,008,804 5,301,799 -5.53% Noninterest
Expense Salaries and benefits 10,265,635 10,661,153 -3.71%
Occupancy 1,926,547 1,360,295 41.63% Furniture and equipment
related 1,067,845 1,111,919 -3.96% Other operating 5,591,619
5,827,908 -4.05% Total 18,851,646 18,961,275 -0.58% Income before
tax 166,592 3,804,702 -95.62% Income tax expense (459,040)
1,245,182 -136.87% Net Income $625,632 $2,559,520 -75.56% Basic
earnings per share $0.18 $0.74 -75.68% Diluted earnings per share
$0.18 $0.72 -75.00% First Reliance Bancshares, Inc. Consolidated
Reports of Income For the Three Months Ended December 31, Increase
/ 2008 2007 (Decrease) (Unaudited) (Unaudited) Interest Income
Loans and Fees $7,255,344 $9,580,050 -24.27% Investment Securities
Taxable 493,861 253,630 94.72% Tax exempt 317,599 227,598 39.54%
Federal funds sold 1,841 6,524 -71.78% Other interest income 4,989
29,876 -83.30% Total 8,073,634 10,097,678 -20.04% Interest Expense
Time deposits $100,000 and over 1,189,921 1,940,210 -38.67% Other
deposits 1,777,861 2,547,802 -30.22% Other interest expense 860,861
252,753 240.59% Total 3,828,643 4,740,765 -19.24% Net Interest
Income 4,244,992 5,356,913 -20.76% Provision for loan losses
3,177,548 773,702 310.69% Net Interest Income after provision
1,067,444 4,583,211 -76.71% Noninterest Income Service charges on
deposit accounts 540,775 506,813 6.70% Gain on sale of mortgage
loans 254,286 537,191 -52.66% Brokerage fees 34,101 25,048 36.14%
Income (Expense) from Bank Owned Life Insurance 105,835 103,444
2.31% Other charges, commissions and fees 115,775 103,265 12.11%
Gain (Loss) on sale of securities available for sale - - Gain on
sale of other real estate 21,300 25,000 -14.80% Gain on sale of
fixed assets - 43,214 -100.00% Other 43,280 76,354 -43.32% Total
1,115,352 1,420,329 -21.47% Noninterest Expense Salaries and
benefits 1,922,482 2,739,013 -29.81% Occupancy 777,110 381,261
103.83% Furniture and equipment related 422,731 227,095 86.15%
Other operating 1,787,956 1,997,258 -10.48% Total 4,910,279
5,344,627 -8.13% Income before tax (2,727,483) 658,913 -513.94%
Income tax expense (1,078,393) 299,182 -460.45% Net Income
$(1,649,090) $359,731 -558.42% Basic earnings per share $(0.47)
$0.10 -570.00% Diluted earnings per share $(0.47) $0.10 -570.00%
http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO
http://photoarchive.ap.org/ DATASOURCE: First Reliance Bancshares,
Inc. CONTACT: F.R. (Rick) Saunders Jr., President and CEO,
+1-843-674-3001, , or Pamela Rhoads, VP Customer Experience,
+1-843-674-3261, , both of First Reliance Bank Web site:
http://www.firstreliance.com/
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