First Reliance Bancshares Reports Third Quarter 2022 Results

Rhea-AI Summary

First Reliance Bancshares, Inc. (OTC:FSRL) reported significant growth in Q3 2022, with a 95.8% increase in net income to $2.5 million or $0.31 per diluted share. Key highlights include a return on average assets of 1.06%, up from 0.45% in Q2 2022, and a net interest margin expansion to 3.71%. Total loans rose by 5.4% to $646.6 million, while total deposits increased by 4.5% to $840.4 million. The company maintained strong asset quality, with nonperforming assets at 0.06% of total assets.

Positive

• Net income increased 95.8% to $2.5 million.
• Return on average assets rose to 1.06%.
• Net interest income increased by 12.4% quarter-over-quarter.
• Total loans increased by 5.4% to $646.6 million.
• Total deposits grew by 4.5% to $840.4 million.
• Net interest margin expanded to 3.71%.

Negative

• Noninterest income decreased by $0.4 million year-over-year.
• Mortgage sales volume decreased by $67.4 million compared to Q3 2021.

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FLORENCE, S.C., Nov. 1, 2022 /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 third quarter of 2022.

Third Quarter 2022 Highlights

• Net income for the third quarter of 2022 increased 95.8% to $2.5 million, or $0.31 per diluted share, compared to $1.3 million, or $0.16 per diluted share, for the third quarter of 2021.
• Return on average assets increased to 1.06% for September 30, 2022 compared to 0.45% at June 30, 2022 and 0.60% for the third quarter of 2021. Return on average equity increased to 15.60% for September 30, 2022 compared to 6.60% at June 30, 2022 and 7.29% for the third quarter of 2021.
• Net interest income for the quarter was $8.2 million, which represents an increase of $0.9 million, or 12.4%, on a linked quarter basis and an increase of $2.0 million, or 31.6% compared to the same period in 2021.
• Net interest margin expanded during the quarter to 3.71% at September 30, 2022 compared to 3.39% for the second quarter of 2022.
• In the third quarter, $4.9 million of the mortgage servicing right assets were sold for a net gain of $632 thousand.
• Total loans increased $8.7 million, or 5.4% annualized, to $646.6 million at September 30, 2022 from $638.0 million at June 30, 2022.
• Total deposits increased $9.4 million, or 4.5% annualized, to $840.4 million at September 30, 2022 from $831.0 million at June 30, 2022. This growth was primarily driven by noninterest-bearing deposits and transaction accounts.
• The Company had net charge-offs of $34 thousand, or annualized 0.02% of average loans during the quarter compared to net recoveries of $178 thousand, or annualized 0.12% of average loans, for the quarter ended June 30, 2022. Asset quality remains unchanged with nonperforming assets as a percentage of total assets of 0.06% at September 30, 2022 and June 30, 2022.
• Cost of funds for the third quarter of 2022 increased to 0.33% from 0.21% on a linked quarter basis and from 0.24% for the same period in 2021.

Rick Saunders, Chief Executive Officer, remarked: "We had another quarter of increased core bank profitability, highlighted by a 32 basis point expansion in Net Interest Margin and improving expense management.  In the face of rising interest rates, we have benefited from the strong deposit franchise that our team has cultivated.  As we continue to execute our growth strategies, we are committed to ensuring that we remain disciplined in our approach to credit underwriting and pricing." 

 

Financial Summary
		Three Months Ended					Nine Months Ended
	Sep 30	Jun 30	Mar 31	Dec 31	Sept 30		Sep 30	Sep 30
($ in thousands, except per share data)	2022	2022	2022	2021	2021		2022	2021
Earnings:
Net income available to common shareholders	$     2,522	$     1,064	$          852	$          932	$     1,288		$      4,438	$      4,344
Earnings per common share, diluted	0.31	0.13	0.11	0.12	0.16		0.55	0.53
Total revenue(1)	11,103	9,404	9,097	9,253	9,570		29,604	29,655
Net interest margin	3.71 %	3.39 %	3.12 %	3.10 %	3.12 %		3.41 %	3.30 %
Return on average assets(2)	1.06 %	0.45 %	0.37 %	0.41 %	0.60 %		0.63 %	0.72 %
Return on average equity(2)	15.60 %	6.60 %	4.85 %	5.28 %	7.29 %		8.91 %	8.34 %
Efficiency ratio(3)	69.40 %	84.49 %	87.50 %	88.45 %	83.83 %		79.76 %	80.98 %

 

	As of
	Sep 30	Jun 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Balance Sheet:
Total assets	$       946,437	$       946,853	$       953,784	$       910,797	$       911,057
Total loans receivable	646,634	637,953	592,089	586,446	564,738
Total deposits	840,392	830,992	837,663	780,833	787,501
Total transaction deposits(4) to total deposits	51.42 %	51.14 %	52.71 %	50.19 %	48.25 %
Loans to deposits	76.94 %	76.77 %	70.68 %	75.11 %	71.71 %
Bank Capital Ratios:
Total risk-based capital ratio	13.47 %	12.97 %	13.67 %	14.07 %	15.80 %
Tier 1 risk-based capital ratio	12.45 %	11.98 %	12.65 %	13.03 %	14.64 %
Tier 1 leverage ratio	9.84 %	9.66 %	9.67 %	9.66 %	10.24 %
Common equity tier 1 capital ratio	12.45 %	11.98 %	12.65 %	13.03 %	14.64 %
Asset Quality Ratios:
Nonperforming assets as a percentage of    total assets	0.06 %	0.06 %	0.11 %	0.10 %	0.15 %
Allowance for loan losses as a percentage of    total loans receivable	1.18 %	1.17 %	1.22 %	1.20 %	1.23 %
Footnotes to table located at the end of this release.

 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited
		Three Months Ended					Nine Months Ended
	Sep 30	Jun 30	Mar 31	Dec 31	Sept 30		Sep 30
($ in thousands, except per share data)	2022	2022	2022	2021	2021		2022	2021
Interest income
Loans	$        7,555	$        6,781	$        6,380	$        6,663	$        6,382		$        20,716	$        18,623
Investment securities	1,097	840	571	359	294		2,508	844
Other interest income	321	176	73	79	58		570	155
Total interest income	8,973	7,797	7,024	7,101	6,734		23,794	19,622
Interest expense
Deposits	446	212	197	224	257		855	798
Other interest expense	283	252	252	256	213		787	740
Total interest expense	729	464	449	480	470		1,642	1,538
Net interest income	8,244	7,333	6,575	6,621	6,264		22,152	18,084
Provision for loan losses	170	110	85	95	100		365	208
Net interest income after provision for loan    losses	8,074	7,223	6,490	6,526	6,164		21,787	17,876
Noninterest income
Mortgage banking income	1,721	897	1,420	1,407	2,151		4,038	8,124
Service fees on deposit accounts	343	357	362	356	315		1,062	865
Debit card and other service charges,    commissions, and fees	536	559	498	543	532		1,593	1,495
Income from bank owned life insurance	91	89	88	93	94		268	281
Gain on sale of securities, net	-	-	-	-	42		-	81
Gain on sale of loans	-	-	-	-	-		-	326
(Loss) Gain on disposal of fixed assets	(10)	-	10	69	-		(1)	-
Other income	178	168	144	164	172		492	399
Total noninterest income	2,859	2,070	2,522	2,632	3,306		7,452	11,571
Noninterest expense
Compensation and benefits	4,505	5,059	5,079	4,965	5,268		14,642	15,777
Occupancy and equipment	923	890	893	862	784		2,707	2,359
Data processing, technology, and communications	846	789	837	920	852		2,473	2,634
Professional fees	185	180	180	202	234		544	715
Marketing	206	184	74	150	113		464	270
Other	1,040	843	897	1,085	772		2,781	2,259
Total noninterest expense	7,705	7,945	7,960	8,184	8,023		23,611	24,014
Income before provision for income taxes	3,228	1,348	1,052	974	1,447		5,628	5,433
Income tax expense	706	284	200	42	159		1,190	1,089
Net income available to common shareholders	$        2,522	$        1,064	$             852	$             932	$        1,288		$           4,438	$           4,344
Weighted average common shares - basic	7,777	7,782	7,784	7,785	7,750		7,781	7,737
Weighted average common shares - diluted	8,073	8,094	8,100	8,096	8,084		8,088	8,160
Basic income per common share	$           0.32	$           0.14	$           0.11	$           0.12	$           0.17		$              0.57	$              0.56
Diluted income per common share	$           0.31	$           0.13	$           0.11	$           0.12	$           0.16		$              0.55	$              0.53

Net income for the three months ended September 30, 2022 was $2.5 million, or $0.31 per diluted common share, compared to $1.3 million, or $0.16 per diluted common share, for the three months ended September 30, 2021.  Net income for the nine months ended September 30, 2022 totaled $4.4 million, or $0.55 per diluted common share, compared to $4.3 million, or $0.53 per diluted common share for the nine months ended September 30, 2021.

Noninterest income for the three months ended September 30, 2022 was $2.9 million, a decrease of $0.4 million from $3.3 million for the same period in 2021.  Noninterest income is largely driven by the Company's mortgage banking division, which produced net revenue of $1.7 million during the three months ended September 30, 2022.  During the third quarter, the Company sold mortgage servicing rights related to approximately $503.8 million of underlying mortgages for a $0.6 million net gain on sale mortgage servicing rights.  Additionally, mortgage sales volume decreased $67.4 million to $56.6 million compared to third quarter 2021 due to the effect of rising mortgage rates.  

Noninterest expense for the three months ended September 30, 2022 was $7.7 million, a decrease of $0.3 million from $8.0 million for the same period in 2021.  This decrease was primarily driven by a decrease in core bank and mortgage compensation and benefits somewhat offset by an increase in other noninterest expense compared to third quarter 2021.    

NET INTEREST INCOME AND MARGIN – Unaudited
	For the Three Months Ended
	September 30, 2022				September 30, 2021
	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	$      66,503	$              317	1.89 %		$    159,307	$              51	0.13 %
Investment securities	163,843	1,097	2.66 %		55,049	294	2.12 %
Nonmarketable equity securities	522	4	3.61 %		837	7	3.38 %
Loans held for sale	10,073	152	5.98 %		32,181	244	3.01 %
Loans	639,929	7,403	4.59 %		548,028	6,138	4.44 %
Total interest-earning assets	880,870	8,973	4.04 %		795,402	6,734	3.36 %
Allowance for loan losses	(7,570)				(6,764)
Noninterest-earning assets	81,448				75,650
Total assets	$   954,748				$    864,288
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$   152,444	$                 29	0.08 %		$    133,577	$              16	0.05 %
Savings & money market	304,629	321	0.42 %		246,212	101	0.16 %
Time deposits	108,258	95	0.35 %		132,972	140	0.42 %
Total interest-bearing deposits	565,331	445	0.31 %		512,761	257	0.20 %
FHLB advances and other borrowings	11,264	5	0.16 %		19,839	48	0.96 %
Subordinated debentures	25,679	279	4.31 %		18,144	165	3.61 %
Total interest-bearing liabilities	602,274	729	0.48 %		550,744	470	0.34 %
Noninterest bearing deposits	274,832				231,993
Other liabilities	12,967				10,903
Shareholders' equity	64,675				70,648
Total liabilities and shareholders' equity	$   954,748				$    864,288
Net interest income (tax equivalent) / interest   rate spread		$         8,244	3.56 %			$       6,264	3.02 %
Net Interest Margin			3.71 %				3.12 %

 

	For the  Nine Months Ended
	September 30, 2022				September 30, 2021
	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	$      97,344	$              552	0.76 %		$    128,926	$           109	0.11 %
Investment securities	141,479	2,508	2.37 %		50,139	844	2.25 %
Nonmarketable equity securities	552	17	4.16 %		909	46	6.75 %
Loans held for sale	17,402	564	4.33 %		34,653	740	2.85 %
Loans	611,679	20,153	4.40 %		517,512	17,883	4.62 %
Total interest-earning assets	868,456	23,794	3.66 %		732,139	19,622	3.58 %
Allowance for loan losses	(7,331)				(6,478)
Noninterest-earning assets	80,919				74,404
Total assets	$   942,044				$    800,065
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts	$   161,932	$                 69	0.06 %		$    129,834	$              45	0.05 %
Savings & money market	288,708	507	0.23 %		210,738	263	0.17 %
Time deposits	113,460	280	0.33 %		136,221	490	0.48 %
Total interest-bearing deposits	564,100	856	0.20 %		476,793	798	0.22 %
FHLB advances and other borrowings	13,044	34	0.35 %		17,665	141	1.06 %
Subordinated debentures	25,671	752	3.92 %		19,901	599	4.03 %
Total interest-bearing liabilities	602,815	1,642	0.36 %		514,359	1,538	0.40 %
Noninterest bearing deposits	260,426				205,531
Other liabilities	12,376				10,695
Shareholders' equity	66,427				69,480
Total liabilities and shareholders' equity	$   942,044				$    800,065
Net interest income (tax equivalent) / interest   rate spread		$      22,152	3.30 %			$    18,084	3.18 %
Net Interest Margin			3.41 %				3.30 %

Net interest income for the three months ended September 30, 2022 was $8.2 million compared to $6.3 million for the three months ended September 30, 2021.  This increase was primarily driven by an increase in interest-earning assets, as well as an increase in interest rates.  Yield on interest-earning assets increased to 4.04% for the three months ended September 30, 2022 from 3.36% for the same period in 2021.   The company expects deposit betas to increase beginning in the fourth quarter of 2022 from historically low levels thus far in the rate tightening cycle which should be at least partially offset by continued increases in interest earning asset yields.

Net interest income was $22.2 million for the nine months ended September 30, 2022, an increase of $4.1 million over the same period in 2021.  Increases in average loans and investments contributed to a majority of the increase in interest income as well as a reduction in yield on interest bearing liabilities.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited
	As of
	Sept 30	June 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Assets
Cash and cash equivalents:
Cash and due from banks	$             4,147	$             7,702	$                 4,672	$                 5,299	$                 4,930
Interest-bearing deposits with banks	60,537	45,683	116,192	144,825	184,739
Total cash and cash equivalents	64,684	53,385	120,864	150,124	189,669
Time deposits in other banks		257	257	257	257
Investment securities:
Investment securities available for sale	160,504	164,440	144,422	81,917	58,470
Other investments	917	657	521	837	837
Total investment securities	161,421	165,097	144,943	82,754	59,307
Mortgage loans held for sale	4,599	19,648	23,528	23,844	33,667
Loans receivable:
Loans	646,634	637,953	592,089	586,446	564,738
Less allowance for loan losses	(7,630)	(7,494)	(7,206)	(7,040)	(6,934)
Loans receivable, net	639,004	630,459	584,883	579,406	557,804
Property and equipment, net	22,868	23,100	23,222	22,805	22,364
Mortgage servicing rights	10,182	14,893	14,536	14,057	13,785
Bank owned life insurance	18,744	18,653	18,564	18,476	18,383
Deferred income taxes	8,629	7,376	5,862	4,128	2,798
Other assets	16,306	13,985	17,125	14,946	13,023
Total assets	946,437	946,853	953,784	910,797	911,057
Liabilities
Deposits	$       840,392	$       830,992	$           837,663	$           780,833	$           787,501
Federal Home Loan Bank advances	-	-	-	10,000	10,000
Federal funds and repurchase agreements	3,726	13,805	11,886	11,372	6,353
Subordinated debentures	15,373	15,365	15,357	15,349	15,498
Junior subordinated debentures	10,310	10,310	10,310	10,310	10,310
Other liabilities	14,472	12,412	11,937	12,131	10,983
Total liabilities	884,273	882,884	887,153	839,995	840,645
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	(4,364)	(4,333)	(4,419)	(4,323)	(4,281)
Nonvested restricted stock	(2,291)	(2,500)	(2,572)	(2,668)	(2,737)
Additional paid-in capital	54,013	54,088	53,980	53,856	53,765
Retained earnings	28,423	25,901	24,837	23,985	23,053
Accumulated other comprehensive income (loss)	(13,706)	(9,276)	(5,284)	(137)	523
Total shareholders' equity	62,164	63,969	66,631	70,802	70,412
Total liabilities and shareholders' equity	$       946,437	$       946,853	$           953,784	$           910,797	$           911,057

 

COMMON STOCK SUMMARY - Unaudited
			As of
	30-Sep	June 30	Mar 31	Dec 31	Sept 30
(shares in thousands)	2022	2022	2022	2021	2021
Voting common shares outstanding	8,793	8,801	8,782	8,793	8,784
Treasury shares outstanding	(575)	(571)	(545)	(535)	(530)
Total common shares outstanding	8,218	8,230	8,237	8,258	8,254
Tangible book value per common share(5)	$                     7.46	$                     7.66	$                     7.98	$                     8.46	$                     8.41
Stock price:
High	$                  10.20	$                  10.20	$                  10.20	$                  10.74	$                  10.50
Low	$                     9.00	$                     9.25	$                     9.75	$                     9.95	$                     9.80
Period end	$                     9.14	$                     9.25	$                     9.85	$                  10.20	$                  10.30

 

ASSET QUALITY MEASURES – Unaudited
	As of
	Sept 30	June 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Nonperforming Assets
Commercial
Owner occupied RE	$                     135	$                     140	$                     144	$                     152	$                       526
Non-owner occupied RE	-	-	295	-	-
Construction	-	-	-	-	-
Commercial business	146	81	-	-	-
Consumer
Real estate	2	3	343	341	346
Home equity	-	-	-	-	-
Construction	-	-	-	-	-
Other	130	160	104	84	121
Nonaccruing troubled debt restructurings	160	173	190	205	220
Total nonaccrual loans	$                     573	$                     557	$                1,076	$                     782	$                  1,213
Other real estate owned	-	-	-	135	150
Total nonperforming assets	$                     573	$                     557	$                1,076	$                     917	$                  1,363
Nonperforming assets as a percentage of:
Total assets	0.06 %	0.06 %	0.11 %	0.10 %	0.15 %
Total loans receivable	0.09 %	0.09 %	0.18 %	0.16 %	0.24 %
Accruing troubled debt restructurings	$                1,312	$                1,349	$                1,393	$                1,405	$                  1,444
	Three Months Ended
	Sept 30	June 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Allowance for Loan Losses
Balance, beginning of period	$                7,494	$                7,206	$                7,040	$                6,934	$                  6,323
Loans charged-off	76	11	19	5	72
Recoveries of loans previously charged-off	42	189	100	16	583
Net charge-offs (recoveries)	34	(178)	(81)	(11)	(511)
Provision for loan losses	170	110	85	95	100
Balance, end of period	$                7,630	$                7,494	$                7,206	$                7,040	$                  6,934
Allowance for loan losses to gross loans receivable	1.18 %	1.17 %	1.22 %	1.20 %	1.23 %
Allowance for loan losses to nonaccrual loans	1331.59 %	1345.42 %	669.70 %	900.26 %	571.64 %
Footnotes to table located at the end of this release.

Our asset quality remained strong through September 30, 2022, with nonperforming assets remaining at $0.6 million, which represents 0.06% of total assets.  The allowance for loan losses as a percentage of total loans receivable increased slightly to 1.18% at September 30, 2022, compared to 1.17% at June 30, 2022.  The Company had net charge-offs of $34 thousand for the three months ended September 30, 2022 compared to net recoveries of $0.5 million for the same period in 2021.

LOAN COMPOSITION – Unaudited
	As of
	Sept 30	June 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Commercial real estate	$             378,589	$             368,316	$             334,508	$             333,060	$             318,849
Consumer real estate	147,110	142,711	123,908	120,079	107,651
Commercial and industrial	67,200	67,239	66,285	60,687	61,778
Consumer and other	53,735	59,687	67,388	72,620	76,460
Total loans, net of deferred fees	646,634	637,953	592,089	586,446	564,738
Less allowance for loan losses	7,630	7,494	7,206	7,040	6,934
Total loans, net	$             639,004	$             630,459	$             584,883	$             579,406	$             557,804

 

DEPOSIT COMPOSITION – Unaudited
	As of
	Sept 30	June 30	Mar 31	Dec 31	Sept 30
(dollars in thousands)	2022	2022	2022	2021	2021
Noninterest-bearing	$        277,587	$        265,049	$        273,118	$        238,019	$        246,534
Interest-bearing:
DDA and NOW accounts	154,550	159,939	168,401	153,889	133,474
Money market accounts	232,711	230,840	217,812	204,432	216,243
Savings	71,929	66,727	61,246	58,566	59,941
Time, less than $250,000	76,530	78,735	84,874	99,059	103,126
Time, $250,000 and over	27,085	29,702	32,212	26,868	28,183
Total deposits	$        840,392	$        830,992	$        837,663	$        780,833	$        787,501

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 $946 million. The company employs more than 175 professionals and has locations throughout South Carolina and central North 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 93% customer satisfaction rating well above the bank industry average of 81%. First Reliance is also one of two companies throughout South Carolina to receive the Best Places to Work in South Carolina award all 17 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. In addition to offering a full range of personalized community banking products and services for individuals, small businesses and corporations, First Reliance offers two unique community-customers programs, which include: Hometown Heroes, a package of benefits for those serving our communities and Check N Save, an outreach program for the unbanked or under-banked. 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 loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan 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 Covid-19 or 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

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SOURCE First Reliance Bancshares

FAQ

What were the net income results for FSRL in Q3 2022?

First Reliance Bancshares reported a net income of $2.5 million in Q3 2022, up 95.8% from the previous year.

How did the net interest margin change for FSRL in Q3 2022?

The net interest margin for FSRL expanded to 3.71% in Q3 2022 from 3.39% in Q2 2022.

What was the total loan growth reported by FSRL?

FSRL reported an increase of $8.7 million in total loans, a 5.4% annualized growth, reaching $646.6 million.

How much did total deposits increase for FSRL in Q3 2022?

Total deposits for FSRL increased by $9.4 million or 4.5% in Q3 2022.

What percentage of total assets were nonperforming at FSRL?

Nonperforming assets were reported at 0.06% of total assets.