First Reliance Bancshares, Inc. Announces Return to Payment of Dividends on Preferred Stock and Trust Preferred Securities
June 16, 2015
FLORENCE, SC – First Reliance Bancshares, Inc. (OTC: FSRL), the parent holding company of First Reliance Bank, announced the return to cash payment of dividends on the Company’s preferred stock originally issued to the United States Treasury as part of the Troubled Asset Relief Program (TARP) and now held by private investors, and interest on the Company’s outstanding trust preferred securities. The Company had been in deferral on these payments since November 2011.
Rick Saunders, President and Chief Executive Officer of the Company, commented, “As of today, we are current on all dividend payments to holders of our TARP preferred stock and interest payments on our trust preferred securities. This is truly a sign of strength for our Company and a tangible vote of confidence from our regulators. We believe this event validates our progress toward our strategic goals over the last year. We have posted five consecutive quarters of profitability, we have recaptured half of our deferred tax asset valuation allowance, we have made significant improvements in asset quality, and we are well-positioned for success going forward.”
Deferred dividends on the TARP preferred stock totaled $4.2 million. Payments of the deferred dividends were made in May 2015. Deferred interest payments on outstanding trust preferred securities totaled $876,657. The Company had continued to accrue the interest payable on the trust preferred securities, so payment of the deferred amount had no effect on current earnings and capital.
As of March 31, 2015, the Bank’s leverage ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 11.64%, 14.22%, and 15.14%, respectively, exceeding all regulatory requirements.
