First Reliance reports record 3Q16 pre-tax income of $1.6 million
October 31, 2016
FLORENCE, SC – First Reliance Bancshares, Inc. (OTC: FSRL), the holding company (the “Company”) for First Reliance Bank (the “Bank”), reported third quarter 2016 pre-tax profits of $1,592,616. This is the 11th consecutive quarter of profitability which continues to be fueled by strong loan and deposit growth, and expanding operating efficiencies.
In the third quarter of 2016, pre-tax income is up 60.3% over $993,844 in the third quarter a year ago. Net income totaled $1,046,684 for the quarter ended September 30, 2016. Net income to common shareholders improved 243.9% in the third quarter of 2016 to $1,046,684 or $0.23 per diluted share from $304,377, or $0.06 per diluted share from second quarter 2016 as a result of redeeming 100% of the TARP funds in the third quarter of 2016.
“We are pleased to be in a position to replace the securities originally issued to the U.S. Treasury under the TARP Capital Purchase Program with lower cost financing alternatives. This is a huge step forward for our company and allows us to invest in new strategic initiatives. Redemption of the TARP securities reduced the Company’s after-tax interest expense and is expected to positively impact earnings per share on an annual basis by $0.21 per share, or approximately $977,000 additional net income to common shareholders,” said Rick Saunders, President and CEO.
“The investments we made to diversify our revenue sources continue to have a positive impact on our bottom line. One of the company strengths has been to grow low cost deposits and we continue to be successful in growing our low cost core deposits in all our markets allowing us to fund our diversified loan growth. With our improved performance came an opportunity to increase our market presence in the Coastal and Midlands regions of South Carolina and have expanded into the Loris and North Myrtle Beach area of South Carolina,” said Rick Saunders, President and CEO.
Financial Highlights (at or for the periods ended September 30, 2016, except as noted)
- EPS of $0.58 per diluted share through nine months of 2016
- EPS quarter over quarter improved 283%
- Book value per share is $5.60 up 8.1% from one year ago
- Completion of Series A and B -Preferred Stock (TARP) redemption in third quarter 2016 with anticipated improvement in earnings per share of $0.21
- Branch Expansion into Loris and North Myrtle Beach
- Loan growth is up $27 million or 10.5% from one year ago
- No and Low Cost Deposits increased 12.2% from the like period in 2015 as we attract new customers through unique programs and the launching of our mobile deposit technology as part of our Reliance “On-The-Go” convenient service
- Total revenues increased 21.34% to $6.7 million in 3Q16 from $5.5 million in 3Q15 reflecting balance sheet growt
- Mortgage production volume reached record levels of $248.6 million as of year to date September 30, 2016 compared to $102.4 million one year ago
- Net interest margin (NIM) was 4.43% as the Company continues to leverage its low cost of funds at 20bp
- Nonperforming Assets decreased $2.1 million from one year ago, reflecting continued improvement in asset quality
- First Reliance Bancshares remains well-capitalized with total risk based capital ratio of 12.5%
