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| 8-K - FIRST RELIANCE BANCSHARES INC | v163739_8k.htm |
FOR
IMMEDIATE RELEASE:
SUBMITTED
BY,
Pamela
Rhoads
Customer
Experience Team
(843)674-3261
FIRST
RELIANCE BANK
First
Reliance Announces 3rd Quarter
Results
October 26, 2009
Florence, SC - First Reliance Bancshares, Inc., (OTC Bulletin Board:
FSRL), the holding company for First Reliance Bank, announces results for the
period ended September 30, 2009.
“During
the third quarter, we have seen improvement in our net interest margin, a
reduction in the level of non performing assets, and a decline in the level of
commercial real estate concentrations. This quarter’s regulatory capital
remains strong and we have experienced growth in core deposits as well as
increasing our liquidity. As with many community banks, the recent economic down
turn has adversely impacted the quality of our loan portfolio. We
have refined our systems to manage impaired loans and have built a solid credit
review process, aggressive risk review methodology and we continue to be
conservative and proactive in our lending policies,” said Rick Saunders,
President and CEO of First Reliance Bank.
“First
Reliance’s strategies are designed to keep us in a strong capital, liquidity and
credit management position while closely monitoring and controlling
expenses. Despite our growth, noninterest expense remains controlled
our liquidity remains strong, and our total delinquency level over 30 days has
decreased from the previous quarter,” stated Jeff Paolucci, CFO of First
Reliance Bank.
As of
September 30, 2009, total deposits were $570.9 million, an increase of $123.3
million or 27.55%, over the $447.6 million reported for September 30, 2008.
Interest bearing deposit accounts increased 52.11% to $41.3 million for the
period ended September 30, 2009. Core Funding increased 11.56% to 60.82%.
Total FHLB advances were reduced to $48.0 million, or 24.41% from $63.5 million
reported the prior year period. Total cash and cash equivalents increased to
$115.7 million from $5.9 million reported September 30, 2008. Total assets
increased to $684.1 million from the $573.7 million reported September 30, 2008.
Total available for sale securities increased 37.66% to $83.8
million.
Total
Risk- Based capital increased to 13.14% over 11.34% reported September 30,
2008.
Unaudited
net income (loss) for the three months ended September 30, 2009 was $
(331,072), compared to $765,178 reported in the prior-year
period. The decline in net income is attributable to the increase in
allowance for loan and lease losses. Provisions for loan losses increased to
$3.2 million compared to $609,967 during the prior year period. Non-interest
income was $2.4 million, compared to $1.2 million reported September 30, 2008.
Non-interest expense was $5.1 million and $4.5 million for the periods ended
September 30, 2009 and 2008, respectively. Diluted earnings (loss) per share
were $(0.16), compared to the $0.22 reported in the prior year
period.
Unaudited
net income for the nine months ended September 30, 2009 was $(1.5) million, or
$(0.58) per diluted share, compared to $2.2 million, or $0.64 per diluted share,
for the nine months ended September 30, 2008. The decline in net income is
attributable to the increase in allowance for loan and lease losses. Provisions
for loan losses increased to $8.1 million compared to $1.8 million during the
prior year period.
FOR
IMMEDIATE RELEASE:
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
First
Reliance Bancshares,Inc.
Consolidated
Reports of Income
|
Three Months
|
Three Months
|
Nine Months
|
Nine Months
|
|||||||||||||
|
Ended
|
Ended
|
Ended
|
Ended
|
|||||||||||||
|
Sept 30,2009
|
Sept 30,2008
|
Sept 30,2009
|
Sept 30,2008
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
|
Interest
Income
|
||||||||||||||||
|
Loans
and Fees
|
7,745,134 | 8,234,706 | 21,583,188 | 25,895,022 | ||||||||||||
|
Investment
Securities
|
||||||||||||||||
|
Taxable
|
687,731 | 349,641 | 1,690,701 | 1,025,605 | ||||||||||||
|
Tax
exempt
|
581,312 | 325,521 | 1,327,111 | 981,013 | ||||||||||||
|
Federal
funds sold
|
14 | 42,662 | 1,346 | 54,502 | ||||||||||||
|
Other
interest income
|
68,377 | 98,977 | 105,097 | 212,941 | ||||||||||||
|
Total
|
9,082,568 | 9,051,507 | 24,707,443 | 28,169,083 | ||||||||||||
|
Interest
Expense
|
||||||||||||||||
|
Time
deposits $100,000 and over
|
1,530,962 | 1,491,623 | 4,106,264 | 5,524,539 | ||||||||||||
|
Other
deposits
|
1,919,434 | 1,722,955 | 5,353,235 | 5,128,023 | ||||||||||||
|
Other
interest expense
|
576,774 | 932,809 | 2,153,744 | 2,817,167 | ||||||||||||
|
Total
|
4,027,170 | 4,147,387 | 11,613,243 | 13,469,729 | ||||||||||||
|
Net
Interest Income
|
5,055,397 | 4,904,120 | 13,094,199 | 14,699,354 | ||||||||||||
|
Provision
for loan losses
|
3,266,449 | 609,967 | 8,122,271 | 1,757,364 | ||||||||||||
|
Net
Interest Income after provision
|
1,788,948 | 4,294,153 | 4,971,928 | 12,941,990 | ||||||||||||
|
Noninterest
Income
|
||||||||||||||||
|
Service
charges on deposit accounts
|
495,390 | 548,098 | 1,430,484 | 1,477,950 | ||||||||||||
|
Gain
on sale of mortgage loans
|
803,133 | 319,519 | 2,017,670 | 1,445,876 | ||||||||||||
|
Income
from bank owned life insurance
|
107,916 | 110,811 | 316,071 | 340,376 | ||||||||||||
|
Brokerage
fees
|
4,179 | 5,685 | 10,110 | 112,242 | ||||||||||||
|
Other
charges, commisions and fees
|
144,137 | 123,548 | 412,040 | 361,643 | ||||||||||||
|
Gain
on sale of securities available for sale
|
846,027 | - | 1,875,486 | - | ||||||||||||
|
Gain
(loss) on sale of other real estate
|
(17,000 | ) | 700 | (32,892 | ) | 700 | ||||||||||
|
Gain
on sale of fixed assets
|
- | 7,092 | 86,810 | 7,092 | ||||||||||||
|
Other
|
47,060 | 46,705 | 321,897 | 147,574 | ||||||||||||
|
Total
|
2,430,842 | 1,162,158 | 6,437,676 | 3,893,453 | ||||||||||||
|
Noninterest
Expense
|
||||||||||||||||
|
Salaries
and benefits
|
2,705,972 | 2,589,777 | 8,229,526 | 8,343,153 | ||||||||||||
|
Occupancy
|
369,823 | 418,005 | 1,079,855 | 1,149,437 | ||||||||||||
|
Furniture
and equipment related
|
249,269 | 222,624 | 811,838 | 953,304 | ||||||||||||
|
Other
operating
|
1,758,786 | 1,248,888 | 4,441,433 | 3,495,473 | ||||||||||||
|
Total
|
5,083,850 | 4,479,294 | 14,562,652 | 13,941,367 | ||||||||||||
|
Income
(loss) before tax
|
(864,060 | ) | 977,017 | (3,153,048 | ) | 2,894,076 | ||||||||||
|
Income
tax expense (benefit)
|
(532,988 | ) | (211,839 | ) | (1,681,227 | ) | (619,354 | ) | ||||||||
|
Net
Income (loss)
|
(331,072 | ) | 765,178 | (1,471,821 | ) | 2,274,722 | ||||||||||
|
Preferred
stock dividends
|
210,839 | - | 478,971 | - | ||||||||||||
|
Deemed
dividends on preferred stock resulting from net accretion of discount and
unamortization of premium
|
44,876 | - | 101,948 | - | ||||||||||||
|
Net
Income (loss) available to common shareholders
|
(586,787 | ) | - | (2,052,740 | ) | - | ||||||||||
|
Average
common shares outstanding basic
|
3,567,533 | 3,520,531 | 3,546,386 | 3,509,597 | ||||||||||||
|
Average
common shares outstanding diluted
|
3,567,533 | 3,521,411 | 3,546,386 | 3,531,198 | ||||||||||||
|
Basic
earnings (loss) per share
|
$ | (0.16 | ) | $ | 0.22 | $ | (0.58 | ) | $ | 0.65 | ||||||
|
Diluted
earnings (loss) per share
|
$ | (0.16 | ) | $ | 0.22 | $ | (0.58 | ) | $ | 0.64 | ||||||
First
Reliance Bancshares,Inc.
Balance
Sheet
|
September 30
|
September 30
|
December 31
|
||||||||||
|
2009
|
2008
|
2008
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||||||||||
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(Unaudited)
|
(Unaudited)
|
Audited
|
||||||||||
|
Assets:
|
||||||||||||
|
Cash
and Cash Equivalents
|
||||||||||||
|
Cash
and Due From Banks
|
115,665,115 | 5,928,325 | $ | 5,451,607 | ||||||||
|
Federal
funds sold
|
- | - | 257,000 | |||||||||
|
Total
cash and cash equivalents
|
115,665,115 | 5,928,325 | 5,708,607 | |||||||||
|
Time
deposits in other banks
|
250,529 | - | ||||||||||
|
Investment
securities
|
||||||||||||
|
Securities
available for sale
|
79,029,038 | 56,982,931 | 76,310,816 | |||||||||
|
Nonmarketable
equity securities
|
4,812,100 | 3,922,200 | 4,574,700 | |||||||||
|
Total
investment securities
|
83,841,138 | 60,905,131 | 80,885,516 | |||||||||
|
Loans
held for sale
|
9,817,762 | 11,226,920 | 9,589,081 | |||||||||
|
Loans
receivable
|
427,672,392 | 459,686,752 | 468,990,202 | |||||||||
|
Less
allowance for loan losses
|
(7,835,814 | ) | (6,210,753 | ) | (8,223,899 | ) | ||||||
|
Loans,
net
|
419,836,578 | 453,475,999 | 460,766,303 | |||||||||
|
Premises,
furniture, and equipment, net
|
26,582,031 | 23,770,377 | 28,612,022 | |||||||||
|
Accrued
interest receivable
|
2,605,973 | 3,049,352 | 2,653,260 | |||||||||
|
Other
real estate owned
|
7,144,261 | 293,700 | 379,950 | |||||||||
|
Cash
surrender value life insurance
|
11,302,554 | 10,880,649 | 10,986,484 | |||||||||
|
Other
assets
|
7,106,657 | 4,143,229 | 3,852,660 | |||||||||
|
Total
Assets
|
$ | 684,152,598 | $ | 573,673,682 | $ | 603,433,883 | ||||||
|
Liabilities:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Noninterest
bearing transaction accounts
|
43,192,640 | 42,917,049 | $ | 39,467,609 | ||||||||
|
Interest
bearing transaction accounts
|
41,311,691 | 27,159,758 | 34,708,951 | |||||||||
|
Savings
|
114,003,067 | 121,475,590 | 110,629,005 | |||||||||
|
Time
deposits $100,000 and over
|
193,283,053 | 131,809,645 | 137,444,867 | |||||||||
|
Other
time deposits
|
179,071,752 | 124,196,593 | 138,884,952 | |||||||||
|
Total
deposits
|
570,862,203 | 447,558,635 | 461,135,384 | |||||||||
|
Securities
sold under agreements to repurchase
|
873,339 | 7,195,414 | 8,197,451 | |||||||||
|
Federal
funds purchased
|
- | 2,170,000 | - | |||||||||
|
Advances
from Federal Home Loan Bank
|
48,000,000 | 63,500,000 | 78,000,000 | |||||||||
|
Note
Payable
|
- | 3,000,000 | 6,950,000 | |||||||||
|
Junior
subordinated debentures
|
10,310,000 | 10,310,000 | 10,310,000 | |||||||||
|
Accrued
interest payable
|
613,319 | 583,346 | 623,330 | |||||||||
|
Other
liabilities
|
2,058,957 | 1,401,244 | 791,960 | |||||||||
|
Total
Liabilities
|
632,717,818 | 535,718,639 | 566,008,125 | |||||||||
|
Shareholders'
Equity:
|
||||||||||||
|
Senior
Preferred Stock
|
15,349,000 | - | - | |||||||||
|
Warrant
Preferred Stock
|
767,000 | - | - | |||||||||
|
Discount
Senior Preferred Stock
|
(861,861 | ) | - | - | ||||||||
|
Pemium
Warrant Preferred Stock
|
73,121 | - | - | |||||||||
|
Common
Stock
|
35,818 | 35,239 | 35,250 | |||||||||
|
Capital
Surplus
|
26,187,162 | 26,114,785 | 26,120,460 | |||||||||
|
Restricted
Stock
|
(155,884 | ) | (247,637 | ) | (207,653 | ) | ||||||
|
Retained
Earnings
|
9,997,738 | 13,488,095 | 11,839,005 | |||||||||
|
Accretion
Disc Senior Preferred Stock
|
(111,399 | ) | - | - | ||||||||
|
Amortization
Prem Warrant Preferred Stock
|
9,451 | - | - | |||||||||
|
Accumulated
other comprehensive income (loss)
|
308,541 | (1,280,180 | ) | (201,527 | ) | |||||||
|
Treasury
Stock
|
(163,907 | ) | (155,259 | ) | (159,777 | ) | ||||||
|
Total
Shareholders Equity
|
51,434,780 | 37,955,043 | 37,425,758 | |||||||||
|
Total
Liabilities and Shareholders Equity
|
$ | 684,152,598 | $ | 573,673,682 | $ | 603,433,883 | ||||||