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First Reliance Bancshares Reports Second Quarter 2025 Results

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First Reliance Bancshares (OTC:FSRL) reported strong Q2 2025 financial results with net income of $3.7 million, or $0.44 per diluted share, representing an 88.1% increase from Q2 2024. The company's performance was marked by significant improvements, including a net interest margin increase to 3.53% and total loans held for investment of $784.7 million.

Key highlights include a 17.3% increase in tangible book value to $10.71 per share, and operating earnings of $2.2 million. The company completed the sale of two North Carolina branches to Carter Bank, resulting in a $2.3 million gain. Asset quality remained strong with nonperforming assets at just 0.02% of total assets. The Board approved a $3.0 million stock repurchase program through June 2026.

[ "Net income increased 88.1% year-over-year to $3.7 million in Q2 2025", "Tangible book value per share grew 17.3% to $10.71", "Net interest margin improved to 3.53%, up 33 basis points year-over-year", "Asset quality strengthened with nonperforming assets at only 0.02% of total assets", "Realized $2.3 million gain from sale of North Carolina branches", "Board authorized $3.0 million stock repurchase program" ]

First Reliance Bancshares (OTC:FSRL) ha riportato solidi risultati finanziari nel secondo trimestre del 2025 con un utile netto di 3,7 milioni di dollari, pari a 0,44 dollari per azione diluita, segnando un aumento dell'88,1% rispetto al secondo trimestre del 2024. Le performance aziendali sono state caratterizzate da miglioramenti significativi, tra cui un aumento del margine di interesse netto al 3,53% e un totale prestiti detenuti per investimento di 784,7 milioni di dollari.

Tra i punti salienti si evidenzia un incremento del valore contabile tangibile del 17,3% a 10,71 dollari per azione e un utile operativo di 2,2 milioni di dollari. L'azienda ha completato la vendita di due filiali in North Carolina a Carter Bank, realizzando un guadagno di 2,3 milioni di dollari. La qualità degli attivi è rimasta solida, con attività non performanti pari allo 0,02% del totale degli attivi. Il Consiglio di Amministrazione ha approvato un programma di riacquisto azionario da 3,0 milioni di dollari fino a giugno 2026.

First Reliance Bancshares (OTC:FSRL) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 3.7 millones de dólares, o 0.44 dólares por acción diluida, lo que representa un aumento del 88.1% respecto al segundo trimestre de 2024. El desempeño de la compañía se destacó por mejoras significativas, incluyendo un aumento del margen de interés neto al 3.53% y préstamos totales para inversión por 784.7 millones de dólares.

Los puntos clave incluyen un incremento del valor contable tangible del 17.3% a 10.71 dólares por acción y ganancias operativas de 2.2 millones de dólares. La empresa completó la venta de dos sucursales en Carolina del Norte a Carter Bank, obteniendo una ganancia de 2.3 millones de dólares. La calidad de los activos se mantuvo sólida con activos no productivos en solo el 0.02% del total de activos. La Junta aprobó un programa de recompra de acciones por 3.0 millones de dólares hasta junio de 2026.

First Reliance Bancshares (OTC:FSRL)는 2025년 2분기에 순이익 370만 달러를 기록했으며, 희석 주당순이익은 0.44달러로 2024년 2분기 대비 88.1% 증가했습니다. 회사의 성과는 순이자마진이 3.53%로 상승하고, 투자용 대출 총액이 7억8,470만 달러에 달하는 등 상당한 개선을 보였습니다.

주요 내용으로는 유형순자산가치가 17.3% 증가하여 주당 10.71달러가 되었고, 영업이익은 220만 달러를 기록했습니다. 회사는 노스캐롤라이나에 있는 두 지점을 Carter Bank에 매각하여 230만 달러의 이익을 실현했습니다. 자산 건전성은 총자산의 0.02%에 불과한 부실자산 비율로 견고하게 유지되었습니다. 이사회는 2026년 6월까지 300만 달러 규모의 자사주 매입 프로그램을 승인했습니다.

First Reliance Bancshares (OTC:FSRL) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un revenu net de 3,7 millions de dollars, soit 0,44 dollar par action diluée, représentant une augmentation de 88,1 % par rapport au deuxième trimestre 2024. La performance de l'entreprise a été marquée par des améliorations significatives, notamment une hausse de la marge d'intérêt nette à 3,53 % et un total des prêts détenus pour investissement de 784,7 millions de dollars.

Les points clés incluent une augmentation de 17,3 % de la valeur comptable tangible à 10,71 dollars par action, ainsi que des bénéfices d'exploitation de 2,2 millions de dollars. La société a finalisé la vente de deux agences en Caroline du Nord à Carter Bank, réalisant un gain de 2,3 millions de dollars. La qualité des actifs est restée solide avec des actifs non performants représentant seulement 0,02 % du total des actifs. Le conseil d'administration a approuvé un programme de rachat d'actions de 3,0 millions de dollars jusqu'en juin 2026.

First Reliance Bancshares (OTC:FSRL) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 3,7 Millionen US-Dollar bzw. 0,44 US-Dollar pro verwässerter Aktie, was einem Anstieg von 88,1 % gegenüber dem zweiten Quartal 2024 entspricht. Die Unternehmensleistung war geprägt von bedeutenden Verbesserungen, darunter eine Steigerung der Nettozinsmarge auf 3,53% und Gesamtdarlehen zur Investition in Höhe von 784,7 Millionen US-Dollar.

Zu den wichtigsten Highlights zählen ein 17,3%iger Anstieg des materiellen Buchwerts auf 10,71 US-Dollar pro Aktie sowie operative Erträge von 2,2 Millionen US-Dollar. Das Unternehmen schloss den Verkauf von zwei Filialen in North Carolina an die Carter Bank ab und erzielte daraus einen Gewinn von 2,3 Millionen US-Dollar. Die Vermögensqualität blieb mit notleidenden Vermögenswerten von nur 0,02 % der Gesamtvermögenswerte stark. Der Vorstand genehmigte ein Aktienrückkaufprogramm in Höhe von 3,0 Millionen US-Dollar bis Juni 2026.

Positive
  • None.
Negative
  • Total deposits decreased $28.3 million (-11.6% annualized) to $950.3 million
  • Minimal loan growth of just $280 thousand (0.14% annualized) in Q2 2025
  • Noninterest expense increased $1.3 million year-over-year to $9.0 million

FLORENCE, S.C., July 25, 2025 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the second quarter of 2025.

Second Quarter 2025 Highlights

  • Net income increased 88.1% for the second quarter of 2025 to $3.7 million, or $0.44 per diluted share, compared to $1.9 million, or $0.24 per diluted share, for the second quarter of 2024. For the six months ended June 30, 2025, net income totaled $5.3 million, or $0.63 per diluted share, compared to $3.2 million, or $0.39 per diluted share for the same period in 2024. Operating earnings (Non-GAAP) were $2.2 million, or $0.27 per diluted share, for the second quarter of 2025, compared to $1.9 million, or $0.24 per diluted share, for the second quarter of 2024. For the first half of 2025, operating earnings (Non-GAAP) totaled $3.9 million or $0.47 per diluted share, compared to $3.2 million, or $0.39 per diluted share, for the first half of 2024.
  • Book value per share increased $1.58, or 17.1%, from $9.22 per share at June 30, 2024, to $10.80 per share at June 30, 2025. Tangible book value per share (Non-GAAP) increased $1.58, or 17.3%, from $9.13 per share at June 30, 2024, to $10.71 per share at June 30, 2025.
  • Net interest income for the second quarter of 2025 was $9.1 million, which represents an increase of $1.4 million, or 18.8%, compared to the same quarter one year ago. Compared to the first quarter of 2025, the increase was $344,000, or 3.9%.
  • Net interest margin increased during the second quarter of 2025 to 3.53%, compared to 3.49% in the first quarter of 2025, and increased 33 basis points compared to the second quarter of 2024.
  • Total loans held for investment increased $280 thousand, or 0.14% annualized, to $784.7 million at June 30, 2025, from $784.5 million at March 31, 2025. For the year, loan growth totaled $31.0 million, or 8.3% annualized.
  • Unfunded commitments increased during the quarter by $22.3 million, primarily in construction loans. This resulted in an increase in the unfunded commitment reserve of $154 thousand to $925 thousand from $771 thousand at March 31, 2025.
  • Total deposits decreased $28.3 million, or 11.6% annualized, to $950.3 million at June 30, 2025, from $978.7 million at March 31, 2025. This was primarily the result of the sale of the two North Carolina branches with $55.9 million in deposits in May 2025 to Carter Bank.
  • Asset quality remained strong with nonperforming assets falling to $205 thousand, or 0.02% of total assets at June 30, 2025, compared to $933 thousand, or 0.09% of total assets at March 31, 2025. This decline was largely the result of the full collection on one loan and fully charging off another loan.
  • In June 2025, the Company's Board approved a stock repurchase program authorizing the purchase of up to $3.0 million of outstanding common stock through expiration of the program on June 30, 2026. In determining stock repurchases, management will consider the following factors: the Company's stock price, expected growth, capital position, alternative uses of capital, liquidity, financial performance, current and expected macroeconomic environment, regulatory requirements and any other relevant factors.

Rick Saunders, Chief Executive Officer, commented: "Tangible book value per share improved by $1.58 per share over the past year to $10.71, an increase of 17.3%. We grew deposit balances by $27.6 million, or 11.3% annualized, excluding the deposits sold to Carter Bank. Loan growth was muted in the second quarter of 2025, however, loan commitments will be funding over the next several quarters. Our margin expanded by four basis points to 3.53% in the second quarter of 2025 from 3.49% last quarter, as the yield on loans improved to 5.79%. Our return on average equity was 10.98%, excluding nonrecurring items. We remain focused on growing the markets in South Carolina with our bank and mortgage products and providing high-touch and quality service to our customers."

Financial Summary




Three Months Ended


Six Months Ended



Jun 30

Mar 31

Dec 31

Sep 30

Jun 30


Jun 30


Jun 30


($ in thousands, except per share data)

2025

2025

2024

2024

2024


2025


2024


Earnings:











Net income available to common shareholders

$         3,653

$     1,613

$        918

$      1,825

$     1,942


$   5,266


$     3,180


Operating earnings (Non-GAAP)

2,248

1,665

1,698

1,950

1,942


3,913


3,180


Earnings per common share, diluted (GAAP)

0.44

0.19

0.11

0.22

0.24


0.63


0.39


Operating earnings per common share, diluted (Non-GAAP)

0.27

0.20

0.21

0.24

0.24


0.47


0.39


Total revenue(1)

13,920

11,158

9,809

9,855

10,226


25,078


19,916


Net interest margin

3.53 %

3.49 %

3.38 %

3.27 %

3.20 %


3.54 %


3.16 %


Return on average assets(2)

1.32 %

0.59 %

0.35 %

0.69 %

0.75 %


0.97 %


0.63 %


Return on average assets - Operating Non-GAAP(2)

0.81 %

0.61 %

0.64 %

0.74 %

0.75 %


0.72 %


0.63 %


Return on average equity(2)

17.84 %

8.15 %

4.66 %

9.60 %

10.69 %


13.14 %


8.93 %


Return on average equity - Operating Non-GAAP(2)

10.98 %

8.41 %

8.62 %

10.26 %

10.69 %


9.76 %


8.93 %


Efficiency ratio(3)

64.61 %

75.52 %

86.42 %

76.90 %

75.21 %


69.46 %


80.81 %


Adjusted efficiency ratio - Non-GAAP(3)

74.03 %

75.04 %

78.29 %

75.66 %

75.21 %


74.52 %


80.81 %


 


As of



Jun 30

Mar 31

Dec 31

Sep 30

Jun 30


($ in thousands)

2025

2025

2024

2024

2024


Balance Sheet:







Total assets

$           1,102,203

$     1,097,389

$     1,067,104

$     1,071,480

$     1,058,395


Total loans receivable

784,749

784,469

753,738

739,219

739,433


Total deposits

950,339

978,667

951,411

951,948

899,799


Total transaction deposits(4) to total deposits

39.50 %

39.46 %

38.64 %

38.82 %

39.18 %


Loans to deposits

82.58 %

80.16 %

79.22 %

77.65 %

82.18 %


Bank Capital Ratios:







Total risk-based capital ratio

12.88 %

12.99 %

13.48 %

13.56 %

13.34 %


Tier 1 risk-based capital ratio

11.84 %

11.92 %

12.43 %

12.51 %

12.28 %


Tier 1 leverage ratio

9.74 %

9.80 %

9.96 %

9.87 %

10.01 %


Common equity tier 1 capital ratio

11.84 %

11.92 %

12.43 %

12.51 %

12.28 %


Asset Quality Ratios:







Nonperforming assets as a percentage of
   total assets

0.02 %

0.09 %

0.11 %

0.09 %

0.03 %


Allowance for credit losses as a percentage

of total loans receivable

1.09 %

1.10 %

1.12 %

1.13 %

1.15 %


Annualized net charge-offs as a percentage

of average total loan receivables

0.03 %

0.08 %

0.00 %

0.03 %

0.05 %


 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited



Three Months Ended

Six Months Ended



Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Jun 30


($ in thousands, except per share data)

2025

2025

2024

2024

2024

2025

2024


Interest income









Loans

$          11,657

$    11,293

$    11,053

$    10,930

$    10,746

$       22,950

$    20,831


Investment securities

2,145

2,166

2,015

1,969

1,875

4,311

3,847


Other interest income

505

318

512

623

419

823

710


Total interest income

14,307

13,777

13,580

13,522

13,040

28,084

25,388


Interest expense









Deposits

4,703

4,468

4,613

4,833

4,652

9,171

8,984


Other interest expense

495

544

564

585

722

1,039

1,530


Total interest expense

5,198

5,012

5,177

5,418

5,374

10,210

10,514


Net interest income

9,109

8,765

8,403

8,104

7,666

17,874

14,874


Provision for credit losses

88

707

141

(83)

55

795

262


Net interest income after provision for credit losses

9,021

8,058

8,262

8,187

7,611

17,079

14,612


Noninterest income









Mortgage banking income

1,586

1,351

1,207

805

1,416

2,937

2,791


Service fees on deposit accounts

299

319

327

327

307

618

643


Debit card and other service charges,
   commissions, and fees

543

529

550

528

568

1,072

1,087


Income from bank owned life insurance

104

102

108

105

103

206

205


Loss on sale of securities, net

-

(182)

(146)

(162)

-

(182)

-


Gain on sale of branches

2,313

-

-

-

-

2,313

-


Gain on early extinguishment of debt

-

140

-

-

-

140

-


Gain (loss) on disposal /write down of fixed assets

(200)

-

(838)

-

-

(200)

20


Other income

166

134

198

148

166

300

296


Total noninterest income

4,811

2,393

1,406

1,751

2,560

7,204

5,042


Noninterest expense









Compensation and benefits

5,574

5,281

5,028

4,682

4,693

10,855

9,571


Occupancy and equipment

770

791

890

848

837

1,561

1,678


Data processing, technology, and communications

1,143

1,156

1,184

994

1,119

2,299

2,158


Professional fees

248

153

268

265

96

401

206


Marketing

175

123

103

66

102

298

262


Other

1,083

923

1,003

723

844

2,006

1,670


Total noninterest expense

8,993

8,427

8,476

7,578

7,691

17,420

15,545


Income before provision for income taxes

4,839

2,024

1,192

2,360

2,480

6,863

4,109


Income tax expense

1,186

411

273

535

538

1,597

929


Net income available to common shareholders

$            3,653

$      1,613

$         919

$      1,825

$      1,942

$         5,266

$      3,180


Addback loss on fixed assets, net of tax

151

-

646

-

-

151

-


Subtract gain on sale of branches, net of tax

(1,746)

-

-

-

-

(1,746)

-


Subtract gain on early extinguishment of debt, net of tax

-

(111)

-

-

-

(111)

-


Addback expenses related to branch sale, net of tax

190

18

21

-

-

208

-


Addback securities losses, net of tax

-

145

113

125

-

145

-


Operating net income (non-GAAP)

2,248

1,665

1,699

1,950

1,942

3,913

3,180


Weighted average common shares - basic

7,892

7,868

7,851

7,847

7,851

7,880

7,844


Weighted average common shares - diluted

8,350

8,331

8,274

8,221

8,260

8,342

8,273


Basic net income per common share*

$              0.46

$        0.21

$        0.12

$        0.23

$        0.25

$           0.67

$        0.41


Diluted net income per common share*

$              0.44

$        0.19

$        0.11

$        0.22

$        0.24

$           0.63

$        0.39


Operating basic net income per common share (nonGAAP)*

$              0.28

$        0.21

$        0.22

$        0.25

$        0.25

$           0.50

$        0.41


Operating diluted net income per common share (nonGAAP)*

$              0.27

$        0.20

$        0.21

$        0.24

$        0.24

$           0.47

$        0.39



*Note that the sum of the quarter may not equal the YTD result due to rounding of earnings per share each quarter, given the weighted average shares outstanding basic and diluted.

Footnotes to table located at the end of this release.

Net income for the three months ended June 30, 2025, was $3.7 million, or $0.44 per diluted common share, compared to $1.9 million, or $0.24 per diluted common share, for the three months ended June 30, 2024. Operating net income (Non-GAAP), for the three months ended June 30, 2025, was $2.2 million, or $0.27 per diluted common share, compared to $1.9 million, or $0.24 per diluted common share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025, totaled $5.3 million, or $0.63 per diluted common share, compared to $3.2 million, or $0.39 per diluted common share. On an operating basis, diluted EPS (Non-GAAP) was $0.47 per diluted common share, for the six months ended June 30, 2025, which includes adding back the impact of securities losses, net of tax, the impact of fixed asset write downs, net of tax, and the impact of expenses related to the branch sales, net of tax, offset by subtracting the gain recognized on the sale of branches, net of tax and the gain from the early extinguishment of debt, net of tax, compared to $0.39 per diluted common share, for the six months ended June 30, 2024.

Noninterest income, for the three months ended June 30, 2025, was $4.8 million, an increase of $2.2 million from $2.6 million for the same period in 2024. Noninterest income was primarily driven by mortgage banking income and totaled $1.6 million in the second quarter of 2025 compared to $1.4 million in the second quarter of 2024. In the second quarter of 2025, the Company sold its two branches in NC recognizing a gain of $2.3 million and wrote down a parcel of land by $200 thousand. 

For the six months ended June 30, 2025, noninterest income increased by $2.2 million, driven by improved mortgage banking income of $146 thousand, gain on sale of branches of $2.3 million offset by the write down of fixed asset of $200 thousand, compared to the same period in 2024.

Noninterest expense, for the three months ended June 30, 2025, was $9.0 million, an increase of $1.3 million from $7.7 million for the same period in 2024. This increase in expense was primarily driven by an increase in compensation and benefits of $881 thousand due primarily to mortgage commissions, salaries and stock compensation expense, an increase of $152 thousand related to additional professional fees related to audit expense associated with Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) compliance, and $239 thousand in other expense primarily associated with costs related to the sale of the two branches in North Carolina (NC). 

Noninterest expense, for the six months ended June 30, 2025, was $17.4 million and increased $1.9 million over the same period one year ago. This increase in noninterest expense was primarily related to compensation and benefits of $1.3 million attributable to mortgage commissions and stock compensation expense, and an increase in professional fees related to audit expense associated with FDICIA compliance, and $336 thousand of other expense primarily associated with cost related to the sale of the two branches in NC.

Operating adjustments – 2Q 2025

During the second quarter of 2025, the Company sold the two North Carolina locations to Carter Bank from Virginia. This sale resulted in a gain of $2.3 million on the deposits assumed by Carter Bank, before expenses. Expenses directly related to the branches sold totaled $252 thousand in the second quarter of 2025. Operating net income reflects the removal of these two items. Total deposits assumed by Carter Bank were $55.9 million. No loans were acquired in this transaction by Carter Bank.

Additionally, the Company wrote down a parcel of land in North Charleston by $200 thousand. This parcel remains for sale. Operating net income reflects the add back of this item, net of tax, totaling $151 thousand.

Operating adjustments - 1Q 2025

During the first quarter of 2025, the Company recorded the following non-recurring transactions:

  • Paid off subordinated indebtedness of $1.0 million with $860 thousand, resulting in a pre-tax gain of $140 thousand,
  • Recorded pre-tax securities losses of $182 thousand, and
  • Recorded pre-tax branch disposal related costs of $23 thousand.

NET INTEREST INCOME AND MARGIN – Unaudited - QTD



For the  Three Months Ended



June 30, 2025


March 31, 2025


June 30, 2024



Average

Income/

Yield/


Average

Income/

Yield/


Average

Income/

Yield/


($ in thousands)

Balance

Expense

Rate


Balance

Expense

Rate


Balance

Expense

Rate


Assets













Interest-earning assets













Federal funds sold and interest-
bearing deposits

$          46,216

$      478

4.15 %


$          37,230

$      292

3.18 %


$          29,743

$      379

5.13 %


Investment securities

186,573

2,145

4.61 %


180,710

2,166

4.86 %


168,826

1,875

4.47 %


Nonmarketable equity securities

1,665

28

6.65 %


1,496

26

7.06 %


2,037

40

7.82 %


Loans held for sale

16,269

353

8.70 %


23,551

364

6.27 %


24,965

446

7.19 %


Loans

783,489

11,304

5.79 %


775,652

10,929

5.71 %


736,944

10,300

5.62 %


Total interest-earning assets

1,034,212

14,307

5.55 %


1,018,639

13,777

5.49 %


962,515

13,040

5.45 %


Allowance for credit losses

(8,652)




(8,616)




(8,508)




Noninterest-earning assets

80,987




81,136




79,658




Total assets

$     1,106,547




$     1,091,159




$     1,033,665

















Liabilities and Shareholders' Equity













Interest-bearing liabilities













NOW accounts

$        158,726

$      242

0.61 %


$        158,710

$      230

0.59 %


$        140,821

$      247

0.70 %


Savings & money market

435,548

3,127

2.88 %


429,861

2,872

2.71 %


366,431

2,712

2.98 %


Time deposits

158,378

1,334

3.38 %


156,527

1,366

3.54 %


179,539

1,694

3.79 %


          Total interest-bearing deposits

752,652

4,703

2.51 %


745,098

4,468

2.43 %


686,792

4,652

2.72 %


FHLB advances and other
borrowings

17,913

191

4.29 %


15,162

213

5.70 %


26,917

356

5.32 %


Subordinated debentures

23,228

304

5.25 %


24,761

331

5.42 %


25,737

366

5.72 %


Total interest-bearing
liabilities

793,793

5,198

2.63 %


785,021

5,012

2.59 %


739,446

5,374

2.92 %


Noninterest bearing deposits

217,979




214,733




207,573




Other liabilities

12,885




12,185




13,971




Shareholders' equity

81,890




79,220




72,674




Total liabilities and
shareholders' equity

$     1,106,547




$     1,091,159




$     1,033,665

















Net interest income (tax
equivalent)/interest 
rate spread


$   9,109

2.92 %



$   8,765

2.90 %



$   7,666

2.53 %


Net Interest Margin



3.53 %




3.49 %




3.20 %















Cost of funds, including
noninterest-bearing deposits



2.06 %




2.03 %




2.28 %


Net interest income, for the three months ended June 30, 2025, was $9.1 million compared to $7.7 million for the three months ended June 30, 2024. This increase was the result of an increase in interest income of $1.3 million and a decrease in interest expense of $176,000. This resulted in an improved net interest margin to 3.53% from 3.20% one year ago. Loans and securities had the largest gains in income and in yields compared to the prior year. While lower yields in all categories of interest-bearing liabilities contributed to the improved net interest margin. In addition, the total cost of funds, including noninterest-bearing deposits, decreased to 2.06% in the second quarter of 2025, compared to 2.28% in the second quarter of 2024.

NET INTEREST INCOME AND MARGIN – Unaudited - YTD 



For the Six Months Ended



June 30, 2025


June 30, 2024



Average

Income/

Yield/


Average

Income/

Yield/


(dollars in thousands)

Balance

Expense

Rate


Balance

Expense

Rate


Assets









Interest-earning assets









Federal funds sold and interest-bearing deposits

$                 39,262

$                769

3.95 %


$          29,419

$             645

4.40 %


Investment securities

183,408

4,311

4.74 %


169,084

3,847

4.56 %


Nonmarketable equity securities

1,676

54

6.45 %


2,093

65

6.21 %


Loans held for sale

17,937

717

8.06 %


20,025

700

7.01 %


Loans

776,521

22,233

5.77 %


723,620

20,131

5.58 %


Total interest-earning assets

1,018,804

28,084

5.56 %


944,241

25,388

5.39 %


Allowance for credit losses

(8,593)




(8,450)




Noninterest-earning assets

80,765




79,850




Total assets

$            1,090,976




$     1,015,641













Liabilities and Shareholders' Equity









Interest-bearing liabilities









NOW accounts

$               152,565

$                473

0.62 %


$        142,005

$             538

0.76 %


Savings & money market

427,502

5,998

2.83 %


352,219

5,156

2.94 %


Time deposits

157,773

2,700

3.45 %


176,923

3,290

3.73 %


Total interest-bearing deposits

737,840

9,171

2.51 %


671,147

8,984

2.68 %


FHLB advances and other borrowings

18,732

404

4.35 %


28,538

793

5.57 %


Subordinated debentures

24,111

635

5.31 %


25,731

737

5.75 %


Total interest-bearing liabilities

780,683

10,210

2.64 %


725,416

10,514

2.91 %


Noninterest bearing deposits

217,556




205,301




Other liabilities

12,585




13,694




Shareholders' equity

80,152




71,230




Total liabilities and shareholders' equity

$            1,090,976




$     1,015,641













Net interest income (tax equivalent) / interest
  rate spread


$           17,874

2.92 %



$        14,874

2.49 %


Net Interest Margin



3.54 %




3.16 %











Cost of funds,including noninterest bearing deposits



2.06 %




2.27 %


Net interest income for the six months ended June 30, 2025, totaled $17.9 million compared to $14.9 million in the first six months of 2024, an increase of $3.0 million. The net interest margin was 3.54% for the first six months of 2025 compared to 3.16% for the same period in 2024. All of the yields on interest-earning assets, except fed funds sold increased. Yields on all interest-bearing liabilities have also declined in all categories. The total cost of funds, including noninterest-bearing deposits was 2.06% compared to 2.27% in 2024.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2025

2025

2024

2024

2024

Assets






Cash and cash equivalents:






Cash and due from banks

$            4,066

$            5,011

$            4,604

$            4,730

$            5,669

Interest-bearing deposits with banks

29,487

32,922

42,623

61,934

41,391

Total cash and cash equivalents

33,553

37,933

47,227

66,664

47,060

Investment securities:






Investment securities available for sale

194,136

181,596

175,846

177,641

173,298

Other investments

2,497

950

886

883

2,788

Total investment securities

196,633

182,546

176,732

178,524

176,086

Mortgage loans held for sale

14,944

22,424

20,974

19,929

25,776

Loans receivable:






Loans

784,749

784,469

753,738

739,219

739,433

Less allowance for credit losses

(8,535)

(8,654)

(8,434)

(8,317)

(8,498)

Loans receivable, net

776,214

775,815

745,304

730,902

730,935

Property and equipment, net

22,469

21,987

21,353

21,861

22,040

Mortgage servicing rights

14,093

13,614

13,410

12,690

12,680

Bank owned life insurance

18,815

18,710

18,608

18,501

18,396

Deferred income taxes

6,510

6,938

7,709

6,292

7,612

Other assets

18,972

17,422

15,787

16,117

17,810

Total assets

1,102,203

1,097,389

1,067,104

1,071,480

1,058,395

Liabilities






Deposits

$        950,339

$        978,667

$        951,411

$        951,948

$        899,799

Federal Home Loan Bank advances

32,500

-

-

-

40,000

Federal funds and repurchase agreements

207

-

-

-

408

Subordinated debentures

9,461

14,453

15,444

15,436

15,428

Junior subordinated debentures

10,310

10,310

10,310

10,310

10,310

Reserve for unfunded commitments

925

771

428

410

364

Other liabilities

12,560

11,972

11,755

12,866

17,590

Total liabilities

1,016,302

1,016,173

989,348

990,970

983,899

Shareholders' equity






Preferred stock - Series D non-cumulative, no par
  value

1

1

1

1

1

Common Stock - $.01 par value; 20,000,000 shares
  authorized

88

88

88

88

88

Treasury stock, at cost

(6,654)

(6,458)

(5,699)

(5,285)

(5,216)

Nonvested restricted stock

(2,536)

(2,566)

(2,340)

(2,444)

(2,463)

Additional paid-in capital

56,708

56,408

55,789

55,763

55,645

Retained earnings

44,937

41,284

39,671

38,753

36,928

Accumulated other comprehensive loss

(6,643)

(7,541)

(9,754)

(6,366)

(10,487)

Total shareholders' equity

85,901

81,216

77,756

80,510

74,496

Total liabilities and shareholders' equity

$     1,102,203

$     1,097,389

$     1,067,104

$     1,071,480

$     1,058,395

First Reliance cash and cash equivalents totaled $33.6 million at June 30, 2025, compared to $37.9 million at March 31, 2025. Cash with the Federal Reserve Bank totaled $29.3 million compared to $41.3 million at June 30, 2024.

First Reliance does not have any Held-to-Maturity (HTM) securities for any reported period. All debt securities were classified as Available-For-Sale (AFS) securities with balances of $194.1 million and $181.6 million, at June 30, 2025 and March 31, 2025, respectively. The unrealized loss recorded on these securities totaled $8.8 million as of June 30, 2025, compared to $10.0 million at March 31, 2025, a decrease in the unrealized loss during the second quarter of $1.2 million (before taxes).

As of June 30, 2025, deposits decreased by $28.3 million, or 11.6% annualized. The deposit decline in all categories, except time deposits less than $250,000, was from the sale of two branches to Carter Bank in May 2025. See the table on page 10 for detail.

During the second quarter of 2025, the Company retired the remaining $5.0 million of subordinated debt that was issued in June 2020. This subordinated debt was scheduled to convert from a fixed interest rate of 5.875% to a variable interest rate of three-month SOFR plus 5.51% on June 1, 2025.

The Company had $32.5 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at June 30, 2025, up from zero at March 31, 2025. The Company had remaining credit availability in excess of $286.1 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to approximately $19.9 million through the Federal Reserve Bank discount window with posted collateral. There are currently no borrowings against the Federal Reserve Bank discount window.

COMMON STOCK SUMMARY - Unaudited





As of




Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

(shares in thousands)

2025

2025

2024

2024

2024

Voting common shares outstanding

8,787

8,786

8,764

8,820

8,819

Treasury shares outstanding

(830)

(809)

(731)

(751)

(743)

  Total common shares outstanding

7,957

7,977

8,033

8,069

8,076







Book value per common share

$                  10.80

$                  10.18

$                    9.68

$                    9.98

$                    9.22

Tangible book value per common
share - Non-GAAP(5)

$                  10.71

$                  10.09

$                    9.59

$                    9.89

$                    9.13







Stock price:






  High

$                  10.00

$                    9.98

$                  10.24

$                  10.59

$                    8.30

  Low

$                    9.00

$                    9.35

$                    9.16

$                    7.60

$                    7.60

  Period end

$                    9.60

$                    9.45

$                    9.59

$                  10.14

$                    7.90

 

ASSET QUALITY MEASURES – Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2025

2025

2024

2024

2024

Nonperforming Assets






Commercial






Owner occupied RE

$                    39

$                    42

$                    44

$                    46

$                     49

Non-owner occupied RE

-

655

646

701

-

Construction

-

-

66

-

62

Commercial business

43

146

328

57

12

Consumer






Real estate

39

40

42

44

46

Home equity

-

-

-

-

-

Construction

-

-

-

-

-

Other

84

50

64

61

66

Nonaccruing loan modifications

-

-

-

-

-

Total nonaccrual loans

$                  205

$                  933

$               1,190

$                  909

$                   235

Other assets repossessed

-

-

11

15

75

Total nonperforming assets

$                  205

$                  933

$               1,201

$                  924

$                   310

Nonperforming assets as a percentage of:






Total assets

0.02 %

0.09 %

0.11 %

0.09 %

0.03 %

Total loans receivable

0.03 %

0.12 %

0.16 %

0.12 %

0.04 %

Accruing loan modifications

$                  797

$                  369

$                  400

$                  428

$                   460








Three Months Ended


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2025

2025

2024

2024

2024

Allowance for Credit Losses






Balance, beginning of period

$               8,654

$               8,434

$               8,317

$               8,498

$                8,497

Loans charged-off

110

163

24

69

102

Recoveries of loans previously charged-off

57

19

18

17

14

Net charge-offs

53

144

6

52

88

Provision for credit losses

(66)

364

123

(129)

89

Balance, end of period

$               8,535

$               8,654

$               8,434

$               8,317

$                8,498

Allowance for credit losses to gross loans
receivable

1.09 %

1.10 %

1.12 %

1.13 %

1.15 %

Allowance for credit losses to nonaccrual loans

4163.41 %

927.54 %

708.74 %

914.96 %

3616.17 %

Asset quality remained strong during the second quarter of 2025, with nonperforming assets decreasing to $205 thousand, which represents 0.02% of total assets. Two loans on nonaccrual were resolved during the second quarter. One was fully collected and the other (that was previously fully reserved) was charged off. The allowance for credit losses as a percentage of total loans receivable decreased to 1.09% at June 30, 2025, compared to 1.10% at March 31, 2025, and 1.12% at December 31, 2024. The allowance for credit losses decreased by a release of provision for credit losses of $66 thousand and by net charge-offs of $53 thousand, during the second quarter of 2025. In the second quarter of 2024, the Company experienced net charge-offs of $88 thousand and increased the ACL with a provision for credit losses of $89 thousand. The ACL was 1.15% of total loans at June 30, 2024. 

Footnotes to table located at the end of this release.

LOAN COMPOSITION – Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2025

2025

2024

2024

2024

Commercial real estate

$             483,278

$             482,201

$             463,301

$             456,775

$             450,936

Consumer real estate

223,310

216,964

204,303

193,362

188,759

Commercial and industrial

61,255

65,573

65,980

66,561

76,149

Consumer and other

16,906

19,731

20,154

22,521

23,589

Total loans, net of deferred fees

784,749

784,469

753,738

739,219

739,433

Less allowance for credit losses

8,535

8,654

8,434

8,317

8,498

Total loans, net

$             776,214

$             775,815

$             745,304

$             730,902

$             730,935

 

DEPOSIT COMPOSITION – Unaudited



As of


Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

($ in thousands)

2025

2025

2024

2024

2024

Noninterest-bearing

$         219,352

$         224,031

$         227,471

$         219,279

$         220,330

Interest-bearing:





-

DDA and NOW accounts

156,062

162,129

140,116

150,312

132,186

Money market accounts

379,078

393,736

381,602

362,834

325,769

Savings

38,995

39,719

40,627

41,184

42,479

Time, less than $250,000

125,607

122,613

120,397

133,940

128,869

Time, $250,000 and over

31,245

36,439

41,198

44,399

50,166

Total deposits

$         950,339

$         978,667

$         951,411

$         951,948

$         899,799

 

Footnotes to tables:

(1)

Total revenue is the sum of net interest income and noninterest income.

(2)

Annualized for the respective period.

(3)

Noninterest expense divided by the sum of net interest income and noninterest income.

(4)

Includes noninterest-bearing and interest-bearing DDA and NOW accounts.

(5)

The tangible book value per share is calculated as total shareholders' equity less intangible assets, divided by period-end outstanding common shares. 

ABOUT FIRST RELIANCE

Founded in 1999, First Reliance Bancshares, Inc. (OTC: FSRL.OB), is based in Florence, South Carolina and has assets of approximately $1.102 billion. The Company employs approximately 170 professionals and has locations throughout South Carolina. First Reliance has redefined community banking with a commitment to making customers' lives better, its founding principle. Customers of the Company have given it a 92% customer satisfaction rating, well above the bank industry average of 82%. First Reliance is also one of two companies throughout South Carolina to receive the Best Places to Work in South Carolina award all 19 years since the program began. We believe that this recognition confirms that our associates are engaged and committed to our brand and the communities we serve. The Company offers a full range of personalized community banking products and services for individuals, small businesses, and corporations. The Company also offers a full suite of digital banking services, Treasury Services, a Customer Service Guaranty, a Mortgage Service Guaranty, and First Reliance Wealth Strategies.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include, but are not limited to, statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for credit losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in the U.S. legal and regulatory framework including, but not limited to, the Dodd-Frank Act and regulations adopted thereunder; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the Company, including the value of its MSR asset; (7) the business related to acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; (8) the expected cost savings and any revenue synergies from acquisitions may not be fully realized within expected timeframes; and (9) disruption from acquisitions may make it more difficult to maintain relationships with clients, associates or suppliers. Moreover, a trade war or other governmental action related to tariffs or international trade agreements or policies, as well as other potential epidemics or pandemics, have the potential to negatively impact ours and/or our customers' costs, demand for our customers' products, and/or the U.S. economy or certain sectors thereof and, thus, adversely affect our business, financial condition, and results of operations. All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact:
Robert Haile 
SEVP & Chief Financial Officer
(843) 656-5000
rhaile@firstreliance.com 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/first-reliance-bancshares-reports-second-quarter-2025-results-302513691.html

SOURCE First Reliance Bancshares, Inc.

FAQ

What were First Reliance Bancshares' (FSRL) earnings per share in Q2 2025?

First Reliance reported earnings of $0.44 per diluted share in Q2 2025, compared to $0.24 per diluted share in Q2 2024, representing an 83.3% increase.

How much did First Reliance's (FSRL) net interest margin improve in Q2 2025?

The net interest margin increased to 3.53% in Q2 2025, up from 3.49% in Q1 2025 and improved by 33 basis points compared to Q2 2024.

What was the impact of First Reliance's North Carolina branch sale?

The sale of two North Carolina branches to Carter Bank resulted in a $2.3 million gain and involved $55.9 million in deposits being transferred.

What is First Reliance's (FSRL) new stock repurchase program?

The Board approved a $3.0 million stock repurchase program in June 2025, which will run through June 30, 2026.

How did First Reliance's asset quality perform in Q2 2025?

Asset quality improved significantly with nonperforming assets falling to $205 thousand (0.02% of total assets), down from $933 thousand (0.09%) in the previous quarter.
Stock FSRL logo
First Reliance Bancshares Inc

OTC:FSRL

FSRL Rankings

#7007 Ranked by Market Cap
N/A Ranked by Dividends

FSRL Latest News

Apr 24, 2025
First Reliance Bancshares Reports First Quarter 2025 Results
Jan 28, 2025
First Reliance Bancshares Reports Fourth Quarter 2024 Results
Dec 10, 2024
Carter Bank Announces North Carolina Branch Acquisition From First Reliance Bank
Oct 24, 2024
First Reliance Bancshares Reports Third Quarter 2024 Results
Jul 25, 2024
First Reliance Bancshares Reports Second Quarter 2024 Results

FSRL Stock Data

76.91M
8.03M
21.28%
Banks - Regional
Financial Services
Link
United States
Florence

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