FLORENCE, S.C., Oct. 27, 2014 /PRNewswire/ -- First Reliance
Bancshares, Inc (OTC: FSRL) announced that it had unaudited net
income of $4,447,675, or $0.77 per diluted share, for the nine months
ended September 30, 2014. This
compares to unaudited net loss of $2,651,556, or $0.84 per diluted share, for the nine months
ended September 30, 2013. The
difference in net income between the two periods primarily relates
to a tax benefit of $3.1 million
derived from the recapture of a portion of the Company's deferred
tax asset in the third quarter of 2014. The Company has a
remaining DTA valuation allowance of $6,598,788 as of September
30, 2014. Net Income per share for the period ending
September 30, 2014 is based on
4,648,535 diluted average shares compared to 4,202,251 diluted
average shares for 2013. Income before income taxes increased
152.2% to $1,382,806 from a loss
before income taxes of $2,651,556 for
the nine months ended September 30,
2014 and 2013, respectively. The 2014 pretax operating
results were influenced by growth in net interest income, reduced
provision for loan losses, and reductions in noninterest
expenses.
Net interest income increased $1,064,754 and totaled $10,142,202 for the nine months ended
September 30, 2014, compared to
$9,077,448 for the nine months ended
September 30, 2013.
Noninterest income decreased $107,640 and totaled $3,306,955 for the nine months ended September 30, 2014 compared to $3,414,595 for 2013, primarily due to an
$86,498 reduction in fees on mortgage
loans sold.
Noninterest expense levels decreased $2,565,266 and totaled $11,968,525 for the nine months ended
September 30, 2014 compared to
$14,533,791 for 2013.
Contributing to this decrease were reductions in salaries and
benefits, and overhead expenses on other real estate owned.
For the quarter ended September 30,
2014, unaudited net income was $3,728,986, or $0.72 per diluted share. This compares to
an unaudited net loss of $2,469,901,
or $0.63 per diluted share for the
quarter ended September 30,
2013. The income per share for the quarter is based on
4,665,290 diluted average shares compared to 4,413,119 diluted
average shares for 2013. Pretax income increased 127% to
$664,117 for the quarter ended
September 30, 2014 from a loss before
income taxes of $2,469,901. The
2014 pretax operating results were influenced by a growth in net
interest income, reduced provision for loan losses, and reductions
in noninterest expenses.
Total assets increased 3.56% and were $368.1 million as of September 30, 2014 compared to $355.4 million as of December 31, 2013.
Loans increased 5.70% or $13.6
million, excluding loans held for sale, to $252.1 million as of September 30, 2014, from $238.5 million as of December 31, 2013.
Deposits increased by $9.9
million, or 3.51% to $292.3
million at September 30, 2014,
from $282.4 million at December 31, 2013. The increase in loans was
funded by an increase in core non-time deposits.
The Company continues to show improvement in asset
quality. For the first nine months ended September 30, 2014, additions to the allowance
for loan losses were minimal at $97,826. Increased recoveries, reduced
non-performing assets, declining delinquencies, and reduced
classified loans all contributed to this result. The ratio of
nonperforming assets to total assets was 1.11% as of September 30, 2014, compared to 6.31% as of
September 30, 2013. The allowance for
loan losses as a percentage of loans was 1.15% as of September 30, 2014, compared to 1.25% as of
September 30, 2013. The
allowance for loan losses as a percentage of total nonperforming
loans totaled 141.73% as of September 30,
2014, compared to 32.47% as of September 30, 2013.
"We are very pleased with our Company's third quarter results as
our asset quality continues to strengthen and as we maintain solid
trends within our business model. Our capital remains strong
and well above regulatory requirements and we have experienced
growth in core deposits, loans, as well as increasing our
liquidity," said Jeffrey Paolucci,
Executive Vice President and Chief Financial Officer of First
Reliance Bank
"We believe that First Reliance's third quarter results combined
with the strategic actions to managing key areas of the bank over
the past few years show the strength of our plan and our management
team. Third quarter performance provided confirmation that positive
trends for the core business remains in place. We continue to be a
community bank of choice in our local communities as many people
have discovered the exceptional service they receive and recognize
us for our support of the communities we are in," said Rick Saunders, President and CEO of First
Reliance Bank.
|
Three Months
Ended
|
|
September 30,
2014
|
September 30,
2013
|
%
Change
|
|
Income Statement
Data
|
|
|
|
|
Net Interest
Income
|
3,550,435
|
3,008,565
|
18.01%
|
|
Provision for loan
losses
|
51,896
|
609,808
|
-91.49%
|
|
Noninterest
Income
|
1,165,575
|
1,180,580
|
-1.27%
|
|
Noninterest
Expense
|
3,999,997
|
6,049,238
|
-33.88%
|
|
Income Tax Expense
(Benefit)
|
(3,064,869)
|
-
|
|
|
Net Income
(Loss)
|
3,728,986
|
(2,469,901)
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
Net Income Per
Share
|
|
|
|
|
Basic
|
$
0.74
|
$
(0.63)
|
217.46%
|
|
Diluted
|
$
0.72
|
$
(0.63)
|
214.29%
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
Basic
|
4,571,726
|
4,413,119
|
3.59%
|
|
Diluted
|
4,665,290
|
4,413,119
|
5.71%
|
|
|
|
|
|
Key
Ratios
|
|
|
|
|
Return on
Assets
|
1.01%
|
-0.68%
|
248.41%
|
|
Return on
Equity
|
10.25%
|
-6.63%
|
254.75%
|
|
Nonperforming assets
to assets
|
1.11%
|
6.31%
|
-82.41%
|
|
Reserve to
loans
|
1.15%
|
1.25%
|
-8.30%
|
|
Reserve to
nonperforming loans
|
141.73%
|
32.47%
|
336.50%
|
|
Net Interest
Margin
|
4.41%
|
3.81%
|
15.76%
|
ABOUT FIRST RELIANCE BANK
First Reliance Bank, founded in 1999, employs approximately 100
highly-talented associates. The bank serves the Columbia, Lexington, Charleston, Mount
Pleasant and Florence
markets in South Carolina. The
bank has been recognized as "One of the Best Places to Work in
South Carolina" by the SC BIZ for
eight consecutive years and was named 2009 Lender of the Year by
the South Carolina Housing Authority. First Reliance Bank offers
several unique customer programs which include a Hometown Heroes
package of benefits to serve those who are serving our communities,
Check 'N Save, a community outreach program for the unbanked or
under-banked, a Moms First program, and an iMatter program targeted
to young people. The Bank also offers a Customer Service Guaranty,
a Mortgage Service Guaranty, FREE Coin Machines for customers to
use, Mobile Banking, and is open on most traditional bank holidays.
Its commitment to making customers' lives better, and the idea that
"There's More to Banking Than Money" has earned the bank a customer
satisfaction rating of 95% (2013 results from an outside survey
firm.)
First Reliance Bank is traded as FSRL.OB. Information about the
Company is available on the Company's web site at
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.
Contact Jeffrey A. Paolucci,
Executive Vice President and Chief Financial Officer, (843)
674-3250.
Contact:
Rick
Saunders, CEO
(888) 543-5510
rsaunders@firstreliance.com
|
First Reliance
BancShares
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
September
30,
|
December
31,
|
|
2014
|
2013
|
|
Assets
|
(Unaudited)
|
(Audited)
|
|
Cash and cash
equivalents:
|
|
|
|
|
Cash and due from
banks
|
$4,354,369
|
$3,548,974
|
|
|
Interest-bearing
deposits with other banks
|
20,207,489
|
14,698,851
|
|
|
|
Total cash and cash
equivalents
|
24,561,858
|
18,247,825
|
|
|
|
|
Time deposits in
other banks
|
101,409
|
101,207
|
|
|
|
|
|
Securities
available-for-sale
|
13,537,545
|
12,144,843
|
|
Securities
held-to-maturity (Estimated fair value of $33,247,693 and
$36,951,934 at September 30, 2014
and December 31, 2013, respectively)
|
32,626,235
|
36,951,934
|
|
Nonmarketable equity
securities
|
1,142,500
|
1,594,900
|
|
|
|
Total investment
securities
|
47,306,280
|
50,691,677
|
|
|
|
|
|
Mortgage loans
held-for-sale
|
2,568,011
|
2,248,252
|
|
|
|
|
|
Loans
receivable
|
252,090,858
|
238,502,131
|
|
|
Less allowance for
loan losses
|
(2,900,341)
|
(2,894,153)
|
|
|
|
Loans, net
|
249,190,517
|
235,607,978
|
|
|
|
|
|
Premises, furniture
and equipment, net
|
23,905,800
|
24,333,616
|
|
Accrued interest
receivable
|
1,048,362
|
1,129,881
|
|
Other real estate
owned
|
2,009,212
|
8,932,634
|
|
Cash surrender value
life insurance
|
13,197,741
|
12,945,693
|
|
Other
assets
|
4,181,399
|
1,169,368
|
|
|
Total
assets
|
$368,070,589
|
$355,408,131
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Liabilities
|
|
|
|
Deposits
|
|
|
|
|
Noninterest-bearing
transaction accounts
|
$69,328,528
|
$65,576,524
|
|
|
Interest-bearing
transaction accounts
|
61,570,826
|
46,046,043
|
|
|
Savings
accounts
|
85,834,789
|
86,247,410
|
|
|
Time deposits
$100,000 and over
|
37,137,622
|
39,934,745
|
|
|
Other time
deposits
|
38,453,965
|
44,610,301
|
|
|
|
Total
deposits
|
292,325,730
|
282,415,023
|
|
Securities sold under
agreement to repurchase
|
7,639,859
|
4,876,118
|
|
Advances from Federal
Home Loan Bank
|
17,000,000
|
23,000,000
|
|
Junior subordinated
debentures
|
10,310,000
|
10,310,000
|
|
Accrued interest
payable
|
747,529
|
587,649
|
|
Other
liabilities
|
3,675,658
|
2,126,597
|
|
|
|
Total
liabilities
|
331,698,776
|
323,315,387
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Preferred
stock
|
|
|
|
|
|
Series A cumulative
perpetual preferred stock - 15,349 shares issued
and outstanding at September 30, 2014 and
December 31, 2013
|
15,179,709
|
15,145,597
|
|
|
|
Series B cumulative
perpetual preferred stock - 767 shares issued and outstanding at September 30, 2014 and December
31, 2013
|
767,000
|
769,894
|
|
Common stock, $0.01
par value; 20,000,000 shares authorized, 4,738,370 and 4,568,695 shares issued and
outstanding at, September 30, 2014
and December 31, 2013, respectively
|
47,384
|
45,687
|
|
Shareholders'
Equity
|
|
|
Capital
surplus
|
30,909,652
|
30,609,281
|
|
Treasury stock, at
cost, 35,176 and 29,846 shares at September 30, 2014
and December 31, 2013,
respectively
|
(205,513)
|
(201,686)
|
|
Nonvested restricted
stock
|
(426,090)
|
(32,138)
|
|
Retained
deficit
|
(10,031,450)
|
(14,447,907)
|
|
Accumulated other
comprehensive income
|
131,121
|
204,016
|
|
|
Total shareholders'
equity
|
36,371,813
|
32,092,744
|
|
|
Total liabilities and
shareholders' equity
|
$368,070,589
|
$355,408,131
|
|
First Reliance
BancShares
|
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
Nine months
ended
|
|
September
30,
|
September
30,
|
|
2014
|
2013
|
2014
|
2013
|
|
Interest
income:
|
|
|
|
|
|
Loans, including
fees
|
$3,461,473
|
$3,246,099
|
$10,058,113
|
$10,090,301
|
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
278,023
|
272,918
|
846,326
|
935,158
|
|
|
Nontaxable
|
28,512
|
16,987
|
85,612
|
16,987
|
|
Other interest
income
|
27,200
|
20,295
|
56,956
|
73,230
|
|
|
|
Total
|
3,795,208
|
3,556,299
|
11,047,007
|
11,115,676
|
|
Interest
expense:
|
|
|
|
|
|
Time
deposits
|
147,846
|
376,271
|
562,813
|
1,502,759
|
|
Other
deposits
|
31,971
|
49,458
|
97,798
|
173,446
|
|
Other interest
expense
|
64,956
|
122,005
|
244,194
|
362,023
|
|
|
|
Total
|
244,773
|
547,734
|
904,805
|
2,038,228
|
|
Net interest
income
|
3,550,435
|
3,008,565
|
10,142,202
|
9,077,448
|
|
Provision for loan
losses
|
51,896
|
609,808
|
97,826
|
609,808
|
|
Net interest
income after provision for loan losses
|
3,498,539
|
2,398,757
|
10,044,376
|
8,467,640
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
Service charges on
deposit accounts
|
421,013
|
435,616
|
1,204,042
|
1,252,816
|
|
Gain on sales of
mortgage loans
|
287,752
|
303,781
|
791,324
|
877,822
|
|
Income from bank
owned life insurance
|
84,276
|
86,908
|
252,048
|
258,675
|
|
Other charges,
commissions and fees
|
272,496
|
271,658
|
807,392
|
739,322
|
|
Gain on sale of
securities
|
-
|
-
|
5,321
|
33,917
|
|
Other non-interest
income
|
100,038
|
82,617
|
246,828
|
252,043
|
|
|
Total
|
1,165,575
|
1,180,580
|
3,306,955
|
3,414,595
|
|
Noninterest
expenses:
|
|
|
|
|
|
Salaries and employee
benefits
|
1,741,970
|
1,939,545
|
5,395,856
|
5,845,209
|
|
Occupancy
expense
|
372,572
|
390,355
|
1,125,353
|
1,123,502
|
|
Furniture and
equipment expense
|
371,530
|
435,846
|
1,178,101
|
908,688
|
|
Other operating
expenses
|
1,513,925
|
3,283,492
|
4,269,215
|
6,656,392
|
|
|
Total
|
3,999,997
|
6,049,238
|
11,968,525
|
14,533,791
|
|
Net income (loss)
before income taxes
|
664,117
|
(2,469,901)
|
1,382,806
|
(2,651,556)
|
|
|
|
|
|
|
Income tax
benefit
|
(3,064,869)
|
-
|
(3,064,869)
|
-
|
|
Net income
(loss)
|
3,728,986
|
(2,469,901)
|
4,447,675
|
(2,651,556)
|
|
Preferred stock
dividends
|
362,610
|
254,449
|
857,595
|
752,944
|
|
Deemed dividends on
preferred stock resulting from net
accretion of discount and amortization of premium
|
-
|
44,876
|
31,218
|
133,164
|
|
Net income (loss)
available to common
shareholders
|
$3,366,376
|
$(2,769,226)
|
$3,558,862
|
$(3,537,664)
|
|
|
|
|
|
|
Average common shares
outstanding, basic
|
4,571,726
|
4,413,119
|
4,570,257
|
4,202,251
|
|
Average common shares
outstanding, diluted
|
4,665,290
|
4,413,119
|
4,648,535
|
4,202,251
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
Basic income (loss)
per share
|
$0.74
|
$(0.63)
|
$0.78
|
$(0.84)
|
|
Diluted income (loss)
per share
|
0.72
|
(0.63)
|
0.77
|
(0.84)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/first-reliance-announces-strong-3rd-quarter-results-823955748.html
SOURCE First Reliance Bancshares, Inc.