EX-99.1 2 v155678_ex99-1.htm EX-99.1
FOR IMMEDIATE RELEASE:
SUBMITTED BY,
Pamela Rhoads
Customer Experience Team
(843)674-3261
FIRST RELIANCE BANK

First Reliance Announces 2nd Quarter Results
 
July 28, 2009 Florence, SC - First Reliance Bancshares, Inc., (OTC Bulletin Board: FSRL), the holding company for First Reliance Bank, announces results for the period ended June 30, 2009.
 
“This quarter’s regulatory capital remains strong and we have experiences growth in core deposits as well as increasing our liquidity. We continue to shore up our allowance for loan losses as we work through credit problems isolated to a few borrowers in the coastal region of South Carolina,” said Rick Saunders, President and CEO of First Reliance Bank.
 
“In this challenging economic environment, we have focused on maintaining adequate levels of liquidity and capital while closely monitoring and controlling expenses.  Despite our growth, noninterest expense remains controlled and is relatively unchanged from the prior year period.  Our liquidity remains strong, and our total delinquency level over 30 days has decreased in recent weeks,” stated Jeff Paolucci, CFO of First Reliance Bank.
 
As of June 30, 2009, total deposits were $575.3 million, an increase of $119.0 million or 26.08%, over the $456.3 million reported for June 30, 2008. Savings accounts increased 28.82% to $105.7 million for the period ended June 30, 2009. Core Funding increased 8.44% to 57.36%. Total FHLB advances were reduced to $56.5 million, or 17.52% from $68.5 million reported the prior year period. Total cash and total cash and cash equivalents increased to $95.0 million from $6.7 million reported June 30, 2008. Total assets increased to $696.0 million from the $585.2 million reported June 30, 2008. Total available for sale securities increased 62.55% to $89.6 million.
 
Total Risk- Based capital increased to 12.54% over 11.08 reported June 30, 2008
 
Unaudited net income (loss) for the three months ended June 30, 2009 was $ (1.2) million, compared to $683,421 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 $3.6 million compared to $645,794 during the prior year period. Non-interest income was $2.3 million, compared to $1.4 million reported June 30, 2008. Non-interest expense was $4.8 million and $4.7 million for the periods ended June 30, 2009 and 2008, respectively. Diluted earnings (loss) per share were $(0.40), compared to the $0.20 reported in the prior year period.
 
Unaudited net income for the six months ended June 30, 2009 was $(1.1) million, or $(0.41) per diluted share, compared to $1.5 million, or $0.43 per diluted share, for the six months ended June 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 $4.9 million compared to $1.1 million during the prior year period.

 
 
 

FOR IMMEDIATE RELEASE:

This press release contains forward-looking statements 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

 
 
 
 
 
FOR IMMEDIATE RELEASE:
 
First Reliance Bancshares,Inc.
Consolidated Reports of Income

   
Three Months
    
Three Months
    
Six Months
    
Six Months
  
   
Ended
    
Ended
    
Ended
    
Ended
  
   
June 30,2009
    
June 30,2008
    
June 30,2009
    
June 30,2008
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
Interest Income
                        
Loans and Fees
     6,870,317       8,560,841       13,838,054       17,660,316  
Investment Securities
                                
       Taxable
     471,654       329,580       1,002,970       675,964  
       Tax exempt
     432,381       327,882       745,799       655,492  
Federal funds sold
     349       9,947       1,332       11,840  
Other interest income
     27,121       62,674       36,720       113,964  
                Total
     7,801,822       9,290,924       15,624,875       19,117,576  
                                 
Interest Expense
                                
Time deposits $100,000 and over
     1,382,735       1,995,863       2,575,302       4,032,916  
Other deposits
     1,810,957       1,502,973       3,433,801       3,405,068  
Other interest expense
     722,421       964,838       1,576,970       1,884,358  
               Total
     3,916,114       4,463,674       7,586,073       9,322,342  
                                 
Net Interest Income
     3,885,709       4,827,250       8,038,802       9,795,234  
Provision for loan losses
     3,555,442       645,794       4,855,822       1,147,397  
Net Interest Income after provision
     330,267       4,181,456       3,182,980       8,647,837  
                                 
Noninterest Income
                                
         Service charges on deposit accounts
     474,486       492,717       935,094       929,852  
         Gain on sale of mortgage loans
     554,038       566,973       1,214,537       1,126,357  
         Income from bank owned life insurance
     103,005       107,811       208,155       229,565  
         Brokerage fees
     2,009       56,227       5,931       106,557  
         Other charges, commisions and fees
     140,904       124,823       267,903       238,095  
         Gain on sale of securities available for sale
     1,029,459       -       1,029,459       -  
         Gain (loss) on sale of other real estate
     -       -       (15,892 )     -  
         Gain on sale of fixed assets
     -       -       86,810       -  
         Other
     9,816       50,950       274,837       100,869  
                       Total
     2,313,717       1,399,501       4,006,834       2,731,295  
                                 
Noninterest Expense
                                
          Salaries and benefits
     2,714,639       2,808,625       5,523,554       5,753,376  
          Occupancy
     354,175       391,729       710,032       731,432  
          Furniture and equipment related
     276,704       209,531       562,569       422,490  
          Other operating
     1,408,405       1,317,792       2,682,647       2,554,775  
                      Total
     4,753,923       4,727,677       9,478,802       9,462,073  
                                 
Income (loss) before tax
     (2,109,939 )     853,280       (2,288,988 )     1,917,059  
Income tax expense (benefit)
     (955,325 )     169,859       (1,148,239 )     407,515  
                                 
Net Income (loss)
     (1,154,614 )     683,421       (1,140,749 )     1,509,544  
Preferred stock dividends
     (208,547 )     -       (268,132 )     -  
Deemed dividends on preferred stock resulting from net accretion of discount and unamortization of premium
     (44,388 )     -       (57,072 )     -  
Net Income (loss) available to common shareholders
     (1,407,549 )     -       (1,465,953 )     -  
Average common shares outstanding basic
     3,567,533       3,445,001       3,546,386       3,504,070  
Average common shares outstanding diluted
     3,567,533       3,549,903       3,546,386       3,532,672  
                                 
Basic earnings (loss) per share
   $ (0.40 )   $ 0.20     $ (0.41 )   $ 0.43  
Diluted earnings (loss) per share
   $ (0.40 )   $ 0.20     $ (0.41 )   $ 0.43  
 
 
 
 
 
 
FOR IMMEDIATE RELEASE:
 
First Reliance Bancshares,Inc.
Balance Sheet

   
June 30
    
June 30
    
December 31
  
   
2009
    
2008
    
2008
  
   
(Unaudited)
    
(Unaudited)
    
Audited
  
Assets:
                  
Cash and Cash Equivalents
                  
Cash and Due From Banks
     95,029,262       6,777,796     $ 5,451,607  
Federal funds sold
     -       6,015,000       257,000  
Total cash and cash equivalents
     95,029,262       12,792,796       5,708,607  
                         
Investment securities
                        
Securities available for sale
     89,605,156       55,125,216       76,310,816  
Nonmarketable equity securities
     4,812,100       4,372,200       4,574,700  
Total investment securities
     94,417,256       59,497,416       80,885,516  
                         
Loans held for sale
     14,925,745       10,447,997       9,589,081  
                         
Loans receivable
     447,853,158       466,428,206       468,990,202  
Less allowance for loan losses
     (7,541,049 )     (5,740,860 )     (8,223,899 )
Loans, net
     440,312,109       460,687,346       460,766,303  
                         
Premises, furniture, and equipment, net
     26,726,663       23,678,331       28,612,022  
Accrued interest receivable
     2,331,650       2,712,271       2,653,260  
Other real estate owned
     3,901,800       473,550       379,950  
Cash surrender value life insurance
     11,194,639       10,769,838       10,986,484  
Other assets
     7,162,535       4,092,857       3,852,660  
Total Assets
   $ 696,001,659     $ 585,152,402     $ 603,433,883  
                         
Liabilities:
                        
Deposits:
                        
Noninterest bearing transaction accounts
     42,473,097       47,008,751     $ 39,467,609  
Interest bearing transaction accounts
     42,327,303       28,321,944       34,708,951  
Savings
     105,726,044       82,073,717       110,629,005  
Time deposits $100,000 and over
     211,773,224       179,899,406       137,444,867  
Other time deposits
     172,965,889       118,971,469       138,884,952  
Total deposits
     575,265,557       456,275,287       461,135,384  
                         
Securities sold under agreements to repurchase
     1,125,365       6,421,356       8,197,451  
Federal funds purchased
     -       -       -  
Advances from Federal Home Loan Bank
     56,500,000       68,500,000       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
     640,379       596,016       623,330  
Other liabilities
     1,868,927       2,396,273       791,960  
Total Liabilities
     645,710,228       544,498,932       566,008,125  
                         
Shareholders' Equity:
                        
Senior Preferred Stock
     15,349,000       -       -  
Warrant Preferred Stock
     767,000       -       -  
Discount Senior Preferred Stock
     (910,897 )     -       -  
Pemium Warrant Preferred Stock
     77,281       -       -  
Common Stock
     35,874       35,135       35,250  
Capital Surplus
     26,260,835       26,050,718       26,120,460  
Restricted Stock
     (269,792 )     (237,078 )     (207,653 )
Retained Earnings
     10,537,930       12,722,917       11,839,005  
Accretion Disc Senior Preferred Stock
     (62,363 )     -       -  
Amortization Prem Warrant Preferred Stock
     5,291       -       -  
Accumulated other comprehensive income (loss)
     (1,334,821 )     (764,722 )     (201,527 )
Treasury Stock
     (163,907 )     (153,500 )     (159,777 )
Total Shareholders Equity
     50,291,431       37,653,470       37,425,758  
                         
Total Liabilities and Shareholders Equity
   $ 696,001,659     $ 582,152,402     $ 603,433,883