FLORENCE, S.C., July 22, 2026 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTCQX:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the second quarter of 2026.
Second Quarter 2026 Highlights
- Net income decreased 23.2% for the second quarter of 2026 to $2.8 million, or $0.34 per diluted share, compared to $3.7 million, or $0.44 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, net income totaled $6.2 million, or $0.76 per diluted share, compared to $5.3 million, or $0.63 per diluted share for the same period in 2025. Operating earnings (Non-GAAP) were $3.1 million, or $0.38 per diluted share, for the second quarter of 2026, compared to $2.2 million, or $0.27 per diluted share, for the second quarter of 2025. For the first half of 2026, operating earnings (Non-GAAP) totaled $6.3 million or $0.77 per diluted share, compared to $3.9 million, or $0.47 per diluted share, for the first half of 2025.
- Book value per share rose $1.67, or 15.5%, to $12.47 at June 30, 2026, from $10.80 at June 30, 2025. Tangible book value per share (Non-GAAP) increased $1.67, or 15.6%, to $12.38 from $10.71 over the same period.
- Net interest income totaled $9.9 million for the second quarter of 2026, up $762 thousand, or 8.4%, from the same quarter in 2025 and up $348 thousand, or 3.7%, from the first quarter of 2026.
- Net interest margin decreased during the second quarter of 2026 to 3.74%, compared to 3.77% in the first quarter of 2026, and increased 21 basis points compared to the second quarter of 2025.
- Total loans held for investment increased $19.5 million, or 9.8% annualized, to $820.7 million at June 30, 2026, from $801.2 million at March 31, 2026. Total loan growth for 2026 totaled $40.8 million, or 10.6% annualized.
- Unfunded commitments declined $3.1 million during the quarter, primarily due to construction loans. As a result, the unfunded commitment reserve decreased $99 thousand to $629 thousand from $728 thousand at March 31, 2026.
- Total deposits were $920.3 million at June 30, 2026, down $8.7 million, or 3.8% annualized, from $929.0 million at March 31, 2026.
- Asset quality remained strong as nonperforming assets declined to $626 thousand, or 0.06% of total assets, at June 30, 2026, compared with $2.1 million, or 0.19% of total assets, at March 31, 2026. The decrease was primarily due to the full collection of one loan.
- In June 2026, the Company announced a partnership with Colony Bank (CBAN), headquartered in Fitzgerald, Georgia. The merger is expected to close in the fourth quarter of 2026, with systems conversion planned for the second quarter of 2027. Based on each company's total assets at June 30, 2026, the combined company will have nearly $5.0 billion in total assets.
Rick Saunders, Chief Executive Officer, commented, "Tangible book value per share increased $1.67, or 15.6%, over the past year to $12.38. Loans grew $19.5 million, or 9.8% annualized, during the second quarter of 2026, while net interest margin expanded 21 basis points year over year to 3.74%. Asset quality remained strong, as nonperforming assets declined significantly following the payoff of our largest nonperforming loan. We were also pleased with our announced partnership with Colony Bank and look forward to joining a team that shares our commitment to exceptional customer service and support for the South Carolina communities that we serve."
Financial Summary
Three Months Ended Six Months Ended
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Jun 30 Jun 30
($ in thousands, except per share data) 2026 2026 2025 2025 2025 2026 2025
Earnings:
Net income available to common shareholders $2,807 $3,436 $2,926 $2,714 $3,653 $6,243 $5,266
Operating earnings (Non-GAAP) 3,089 3,233 2,852 2,714 2,248 6,322 3,913
Earnings per common share, diluted (GAAP) 0.34 0.41 0.36 0.33 0.44 0.76 0.63
Operating earnings per common share, diluted (Non-GAAP) 0.38 0.39 0.35 0.33 0.27 0.77 0.47
Total revenue(1) 12,803 13,025 12,353 12,238 13,920 25,828 25,078
Net interest margin 3.74 % 3.77 % 3.71 % 3.66 % 3.53 % 3.76 % 3.54 %
Return on average assets(2) 1.00 % 1.25 % 1.06 % 0.99 % 1.32 % 1.12 % 0.97 %
Return on average assets - Operating Non-GAAP(2) 1.10 % 1.18 % 1.03 % 0.99 % 0.81 % 1.14 % 0.72 %
Return on average equity(2) 11.58 % 14.53 % 12.83 % 12.55 % 17.84 % 13.04 % 13.14 %
Return on average equity - Operating Non-GAAP(2) 12.75 % 13.67 % 12.51 % 12.55 % 10.98 % 13.20 % 9.76 %
Efficiency ratio(3) 71.44 % 64.84 % 71.08 % 69.61 % 64.61 % 68.11 % 69.46 %
Adjusted efficiency ratio - Non-GAAP(3) 68.67 % 66.16 % 71.59 % 69.61 % 74.03 % 67.42 % 74.52 %
As of
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Balance Sheet:
Total assets $1,126,912 $1,118,388 $1,093,359 $1,097,846 $1,102,203
Total loans receivable 820,741 801,243 779,935 779,997 784,749
Total deposits 920,329 929,045 948,120 959,300 950,339
Total transaction deposits(4) to total deposits 38.29 % 36.83 % 36.59 % 40.68 % 39.50 %
Loans to deposits 89.18 % 86.24 % 82.26 % 81.31 % 82.58 %
Bank Capital Ratios:
Total risk-based capital ratio 14.26 % 14.15 % 13.82 % 13.58 % 12.88 %
Tier 1 risk-based capital ratio 13.16 % 13.04 % 12.72 % 12.48 % 11.84 %
Tier 1 leverage ratio 10.53 % 10.53 % 10.16 % 9.94 % 9.74 %
Common equity tier 1 capital ratio 13.16 % 13.04 % 12.72 % 12.48 % 11.84 %
Asset Quality Ratios:
Nonperforming assets as a percentage of 0.06 % 0.19 % 0.23 % 0.03 % 0.02 %
total assets
Allowance for credit losses as a percentage 1.14 % 1.14 % 1.13 % 1.12 % 1.09 %
of total loans receivable
Annualized net charge-offs as a percentage (0.00 %) (0.01 %) (0.03 %) 0.02 % 0.03 %
of average total loan receivables
CONDENSED CONSOLIDATED INCOME STATEMENTS - Unaudited
Three Months Ended Six Months Ended
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Jun 30
($ in thousands, except per share data) 2026 2026 2025 2025 2025 2026 2025
Interest income
Loans $12,252 $11,534 $11,518 $11,842 $11,657 $23,786 $22,950
Investment securities 2,292 2,413 2,302 2,300 2,145 4,705 4,311
Other interest income 307 189 406 323 505 496 823
Total interest income 14,851 14,136 14,226 14,465 14,307 28,987 28,084
Interest expense
Deposits 4,065 3,930 4,215 4,536 4,703 7,995 9,171
Other interest expense 915 683 393 476 495 1,598 1,039
Total interest expense 4,980 4,613 4,608 5,012 5,198 9,593 10,210
Net interest income 9,871 9,523 9,618 9,453 9,109 19,394 17,874
Provision for credit losses 123 175 76 90 88 298 795
Net interest income after provision for credit losses 9,748 9,348 9,542 9,363 9,021 19,096 17,079
Noninterest income
Mortgage banking income 1,764 2,103 1,405 1,577 1,586 3,867 2,937
Service fees on deposit accounts 361 366 405 412 299 727 618
Debit card and other service charges, 528 506 527 531 543 1,034 1,072
commissions, and fees
Income from bank owned life insurance 107 104 107 108 104 211 206
Loss on sale of securities, net (6) (294) (6) (182)
Gain on sale of branches 2,313 2,313
Gain on sale of mortgage servicing right (MSR) 266 266
Gain on early extinguishment of debt 140
Gain (loss) on disposal /write down of fixed assets 382 (200) (200)
Other income 172 163 203 157 166 335 300
Total noninterest income 2,932 3,502 2,735 2,785 4,811 6,434 7,204
Noninterest expense
Compensation and benefits 5,726 5,447 5,499 5,431 5,574 11,173 10,855
Occupancy and equipment 724 796 725 736 770 1,520 1,561
Data processing, technology, and communications 1,315 1,218 1,216 1,061 1,143 2,533 2,299
Professional fees 144 77 85 195 248 221 401
Marketing 65 96 71 155 175 161 298
Other 1,172 812 1,185 941 1,083 1,984 2,006
Total noninterest expense 9,146 8,446 8,781 8,519 8,993 17,592 17,420
Income before provision for income taxes 3,534 4,404 3,496 3,629 4,839 7,938 6,863
Income tax expense 727 968 570 915 1,186 1,695 1,597
Net income available to common shareholders $2,807 $3,436 $2,926 $2,714 $3,653 $6,243 $5,266
(Subtract gain) / addback loss on fixed assets, net of tax (320) 151 151
Subtract gain on sale of branches, net of tax (1,746) (1,746)
Subtract gain on sale of MSR, net of tax (208) (208)
Subtract gain on early extinguishment of debt, net of tax (111)
Addback expenses related to merger/branch sale, net of tax 282 190 282 208
Addback securities losses, net of tax 5 246 5 145
Operating net income (non-GAAP) $3,089 $3,233 $2,852 $2,714 $2,248 $6,322 $3,913
Weighted average common shares - basic 7,784 7,866 7,745 7,902 7,892 7,825 7,880
Weighted average common shares - diluted 8,210 8,302 8,218 8,349 8,350 8,259 8,342
Basic net income per common share* $0.36 $0.44 $0.38 $0.34 $0.46 $0.80 $0.67
Diluted net income per common share* $0.34 $0.41 $0.36 $0.33 $0.44 $0.76 $0.63
Operating basic net income per common share (nonGAAP)* $0.40 $0.41 $0.37 $0.34 $0.28 $0.81 $0.50
Operating diluted net income per common share (nonGAAP)* $0.38 $0.39 $0.35 $0.33 $0.27 $0.77 $0.47
*Note that the sum of the quarters may not equal the YTD result due to rounding of earnings per share each quarter, given the weighted average shares outstanding basic and/or diluted.
Footnotes to table located at the end of this release.
Net income for the three months ended June 30, 2026, was $2.8 million, or $0.34 per diluted common share, compared to $3.7 million, or $0.44 per diluted common share, for the three months ended June 30, 2025. Operating net income (Non-GAAP), for the three months ended June 30, 2026, was $3.1 million, or $0.38 per diluted common share, compared to $2.2 million, or $0.27 per diluted common share for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026, totaled $6.2 million, or $0.76 per diluted common share, compared to $5.3 million, or $0.63 per diluted common share, at June 30, 2025. On an operating basis, diluted EPS (Non-GAAP) was $0.77 per diluted common share, for the six months ended June 30, 2026, which includes adding back the impact of securities losses, net of tax, subtracting the gain on the sale of mortgage servicing rights, net of tax, and adding back the impact of merger related expenses, net of tax. The items affecting June 30, 2025, net of tax, include the following: the addback of loss on fixed asset write downs, adding back the impact of expenses related to the branch sales, adding back securities losses, offset by subtracting the gain recognized on the sale of branches and the gain from the early extinguishment of debt, which resulted in $0.47 per diluted common share, for the six months ended June 30, 2025.
Noninterest income, for the three months ended June 30, 2026, was $2.9 million, a decrease of $1.9 million from $4.8 million for the same period in 2025. Mortgage banking income totaled $1.8 million in the second quarter of 2026 compared to $1.6 million in the second quarter of 2025. 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, 2026, noninterest income decreased $770 thousand compared with the same period in 2025. The decline was due to the $2.3 million gain on the sale of branches and the $140 thousand gain on early debt extinguishment recognized in 2025. These two items were partially offset by a $930 thousand increase in mortgage banking income, a $266 thousand gain on the sale of mortgage servicing rights, a $109 thousand increase in deposit account service fees, no fixed-asset write-down in 2026, and a $176 thousand reduction in losses on securities sold.
Noninterest expense was $9.1 million for the three months ended June 30, 2026, up $152 thousand from $9.0 million for the same period in 2025. The increase was driven by a $152 thousand rise in compensation and benefits, primarily due to higher incentives and mortgage commissions, partially offset by lower salaries, payroll taxes, and insurance benefits. All other expense categories offset one another.
Noninterest expense was $17.6 million for the six months ended June 30, 2026, up $172 thousand from the prior-year period. The increase was primarily driven by a $318 thousand rise in compensation and benefits related to mortgage commissions, incentives, and stock compensation expense, partially offset by lower salaries, payroll taxes, and benefits. Data processing, technology, and communications expense increased $234 thousand. These increases were partially offset by a $137 thousand decrease in marketing expense and $181 thousand decrease in professional fees related to FDICIA compliance audit and legal costs.
Operating adjustments - 2Q 2026
During the second quarter of 2026, the Company announced the partnership with Colony Bank (CBAN) headquartered in Fitzgerald, Georgia. The Company incurred $354 thousand of merger related expenses.
Operating adjustments - 1Q 2026
During the first quarter of 2026, the Company sold mortgage servicing rights (MSRs) related to approximately $565.9 million of underlying mortgage loans for an initial gain of $266 thousand, net of direct expenses. The Company also sold securities at a net loss of $6 thousand.
Operating adjustments - 4Q 2025
During the fourth quarter of 2025, the Company sold a property in Florence which resulted in a gain of $382 thousand and sold five securities resulting in a net loss of $294 thousand.
There were no operating adjustments in 3Q 2025.
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 is currently under contract to be sold. Operating net income reflects the add back of this item, net of tax, totaling $151 thousand.
NET INTEREST INCOME AND MARGIN - Unaudited- QTD
For the Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
($ in thousands)
Balance Expense Rate Balance Expense Rate Balance Expense Rate
Assets
Interest-earning assets
Federal funds sold and interest- $31,859 $261 3.28 % $23,893 $166 2.82 % $46,216 $478 4.15 %
bearing deposits
Investment securities 194,063 2,292 4.74 % 197,798 2,413 4.95 % 186,573 2,145 4.61 %
Nonmarketable equity securities 4,147 46 4.49 % 2,994 24 3.21 % 1,665 28 6.65 %
Loans held for sale 16,354 318 7.80 % 10,469 163 6.34 % 16,269 353 8.70 %
Loans 811,650 11,934 5.90 % 788,645 11,370 5.85 % 783,489 11,304 5.79 %
Total interest-earning assets 1,058,073 14,851 5.63 % 1,023,799 14,136 5.60 % 1,034,212 14,307 5.55 %
Allowance for credit losses (9,181) (8,886) (8,652)
Noninterest-earning assets 78,237 82,451 80,987
Total assets $1,127,129 $1,097,364 $1,106,547
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts $101,523 $163 0.64 % $94,858 $155 0.66 % $158,726 $242 0.61 %
Savings & money market 429,446 2,679 2.50 % 429,693 2,612 2.47 % 435,548 3,127 2.88 %
Time deposits 152,404 1,223 3.22 % 153,746 1,163 3.07 % 158,378 1,334 3.38 %
Total interest-bearing deposits 683,373 4,065 2.39 % 678,297 3,930 2.35 % 752,652 4,703 2.51 %
FHLB advances and other borrowings 69,780 673 3.87 % 45,861 439 3.88 % 17,913 191 4.29 %
Subordinated debentures 19,799 242 4.90 % 19,791 244 5.00 % 23,228 304 5.25 %
Total interest-bearing liabilities 772,952 4,980 2.58 % 743,949 4,613 2.51 % 793,793 5,198 2.63 %
Noninterest bearing deposits 244,109 246,142 217,979
Other liabilities 13,139 12,659 12,885
Shareholders' equity 96,929 94,614 81,890
Total liabilities and shareholders' equity $1,127,129 $1,097,364 $1,106,547
Net interest income (tax equivalent) / interest $9,871 3.05 % $9,523 3.09 % $9,109 2.92 %
rate spread
Net Interest Margin 3.74 % 3.77 % 3.53 %
Cost of funds, including noninterest-bearing deposits 1.96 % 1.89 % 2.06 %
Net interest income for the three months ended June 30, 2026, was $9.9 million, compared with $9.1 million for the same period in 2025. The increase reflected a $544 thousand rise in interest income and a $218 thousand decrease in interest expense. Net interest margin improved to 3.74% from 3.53% a year earlier. Loans and securities generated the largest increases in both income and yields compared with the prior year, while lower yields on most interest-bearing liabilities, excluding NOW accounts, also contributed to the margin improvement. In addition, the total cost of funds, including noninterest-bearing deposits, decreased to 1.96% in the second quarter of 2026, compared to 2.06% in the second quarter of 2025.
NET INTEREST INCOME AND MARGIN - Unaudited - YTD
For the Six Months Ended
June 30, 2026
June 30, 2025
Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits $27,898 $427 3.08 % $39,262 $769 3.95 %
Investment securities 195,921 4,704 4.84 % 183,408 4,311 4.74 %
Nonmarketable equity securities 3,574 70 3.95 % 1,676 54 6.45 %
Loans held for sale 13,428 482 7.24 % 17,937 717 8.06 %
Loans 800,211 23,304 5.87 % 776,521 22,233 5.77 %
Total interest-earning assets 1,041,032 28,987 5.62 % 1,018,804 28,084 5.56 %
Allowance for credit losses (9,035) (8,593)
Noninterest-earning assets 80,332 80,765
Total assets $1,112,329 $1,090,976
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts $98,209 $318 0.65 % $152,565 $473 0.62 %
Savings & money market 429,569 5,291 2.48 % 427,502 5,998 2.83 %
Time deposits 153,071 2,386 3.14 % 157,773 2,700 3.45 %
Total interest-bearing deposits 680,849 7,995 2.37 % 737,840 9,171 2.51 %
FHLB advances and other borrowings 57,887 1,112 3.88 % 18,732 404 4.35 %
Subordinated debentures 19,795 486 4.95 % 24,111 635 5.31 %
Total interest-bearing liabilities 758,531 9,593 2.55 % 780,683 10,210 2.64 %
Noninterest bearing deposits 245,120 217,556
Other liabilities 12,900 12,585
Shareholders' equity 95,778 80,152
Total liabilities and shareholders' equity $1,112,329 $1,090,976
Net interest income (tax equivalent) / interest $19,394 3.07 % $17,874 2.92 %
rate spread
Net Interest Margin 3.76 % 3.54 %
Cost of funds,including noninterest bearing deposits 1.93 % 2.06 %
Net interest income was $19.4 million for the six months ended June 30, 2026, an increase of $1.5 million from $17.9 million for the same period in 2025. Net interest margin rose year over year to 3.76% from 3.54%. Yields improved on investment securities and loans, while yields declined across all interest-bearing liability categories except NOW accounts. The total cost of funds, including noninterest-bearing deposits, decreased to 1.93% from 2.06% in 2025.
CONDENSED CONSOLIDATED BALANCE SHEETS - Unaudited
As of
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Assets
Cash and cash equivalents:
Cash and due from banks $4,036 $4,236 $4,031 $5,072 $4,066
Interest-bearing deposits with banks 22,991 26,477 28,101 26,695 29,487
Total cash and cash equivalents 27,027 30,713 32,132 31,767 33,553
Investment securities:
Investment securities available for sale 188,825 200,886 196,043 199,674 194,136
Other investments 4,400 3,682 1,764 1,527 2,497
Total investment securities 193,225 204,568 197,807 201,201 196,633
Mortgage loans held for sale 18,135 15,636 12,280 13,336 14,944
Loans receivable:
Loans 820,741 801,243 779,935 779,997 784,749
Less allowance for credit losses (9,334) (9,105) (8,827) (8,741) (8,535)
Loans receivable, net 811,407 792,138 771,108 771,256 776,214
Property and equipment, net 24,321 24,454 24,348 23,313 22,469
Mortgage servicing rights 9,481 8,728 14,656 14,421 14,093
Bank owned life insurance 19,240 19,134 19,029 18,922 18,815
Deferred income taxes 6,944 6,438 6,117 6,221 6,510
Other assets 17,132 16,579 15,882 17,409 18,972
Total assets $1,126,912 1,118,388 1,093,359 1,097,846 1,102,203
Liabilities
Deposits $920,329 $929,045 $948,120 $959,300 $950,339
Federal Home Loan Bank advances 75,000 60,000 20,000 15,000 32,500
Federal funds and repurchase agreements 207
Subordinated debentures 9,492 9,484 9,476 9,469 9,461
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Reserve for unfunded commitments 629 728 822 767 925
Other liabilities 12,736 12,937 11,565 13,498 12,560
Total liabilities 1,028,496 1,022,504 1,000,293 1,008,344 1,016,302
Shareholders' equity
Preferred stock - Series D non-cumulative, no par 1 1 1 1 1
value
Common Stock - $.01 par value; 20,000,000 shares 89 89 88 88 88
authorized
Treasury stock, at cost (8,635) (8,536) (8,085) (7,883) (6,654)
Nonvested restricted stock (1,241) (1,592) (1,949) (2,359) (2,536)
Additional paid-in capital 57,041 57,026 56,869 56,931 56,708
Retained earnings 56,821 54,014 50,578 47,652 44,937
Accumulated other comprehensive loss (5,660) (5,118) (4,436) (4,928) (6,643)
Total shareholders' equity 98,416 95,884 93,066 89,502 85,901
Total liabilities and shareholders' equity $1,126,912 $1,118,388 $1,093,359 $1,097,846 $1,102,203
Cash and cash equivalents totaled $27.0 million at June 30, 2026, compared with $30.7 million at March 31, 2026. Cash held at the Federal Reserve Bank was $22.4 million, compared with $26.3 million at March 31, 2026.
First Reliance had no held-to-maturity (HTM) securities for any reported period. All debt securities were classified as available-for-sale (AFS), with balances of $188.8 million at June 30, 2026, and $194.1 million at June 30, 2025. The unrealized loss on these securities was $7.5 million at June 30, 2026, compared with $6.8 million at March 31, 2026, an increase of $700 thousand before taxes during the second quarter of 2026.
Deposits decreased $8.7 million, or 3.8% annualized, as of June 30, 2026, primarily due to lower money market account balances. The decline was partially offset by increases in noninterest-bearing deposits, DDA and NOW accounts, and time deposits under $250 thousand. See the table on page 10 for details.
The Company had $75.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at June 30, 2026, up from $60.0 million at March 31, 2026. The Company had remaining credit availability in excess of $245.0 million with the FHLB of Atlanta, subject to collateral requirements.
First Reliance also has access to approximately $17.9 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) 2026 2026 2025 2025 2025
Voting common shares outstanding 8,905 8,896 8,804 8,794 8,787
Treasury shares outstanding (1,010) (1,003) (972) (954) (830)
Total common shares outstanding 7,895 7,893 7,832 7,840 7,957
Book value per common share $12.47 $12.15 $11.88 $11.42 $10.80
Tangible book value per common $12.38 $12.06 $11.79 $11.33 $10.71
share - Non-GAAP(5)
Stock price:
High $18.75 $16.03 $13.70 $10.21 $10.00
Low $13.03 $12.00 $10.00 $9.36 $9.00
Period end $18.43 $13.90 $12.26 $10.10 $9.60
ASSET QUALITY MEASURES - Unaudited
As of
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Nonperforming Assets
Commercial
Owner occupied RE $332 $1,357 $1,573 $36 $39
Non-owner occupied RE
Construction
Commercial business 24 27 31 38 43
Consumer
Real estate 208 69 36 226 39
Home equity
Construction
Other 62 65 71 69 84
Nonaccruing loan modifications
Total nonaccrual loans $626 $1,518 $1,711 $369 $205
Loans past due 90 days or more & accruing interest $592 $744
$ -
Other assets repossessed 6
Total nonperforming assets $626 $2,110 $2,461 $369 $205
Nonperforming assets as a percentage of:
Total assets 0.06 % 0.19 % 0.23 % 0.03 % 0.02 %
Total loans receivable 0.08 % 0.26 % 0.32 % 0.05 % 0.03 %
Accruing loan modifications $526 $555 $668 $683 $797
Three Months Ended
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Allowance for Credit Losses
Balance, beginning of period $9,105 $8,827 $8,741 $8,535 $8,654
Loans charged-off 10 8 15 48 110
Recoveries of loans previously charged-off 17 17 80 6 57
Net charge-offs (recoveries) (7) (9) (65) 42 53
Provision for credit losses 222 269 21 248 (66)
Balance, end of period $9,334 $9,105 $8,827 $8,741 $8,535
Allowance for credit losses to gross loans receivable 1.14 % 1.14 % 1.13 % 1.12 % 1.09 %
Allowance for credit losses to nonaccrual loans 1491.67 % 599.78 % 515.87 % 2368.83 % 4163.41 %
Asset quality improved in the second quarter of 2026, as nonperforming assets declined to $626 thousand, or 0.06% of total assets, primarily due to the payoff of one nonaccrual loan. The allowance for credit losses was 1.14% of total loans receivable at June 30, 2026, unchanged from March 31, 2026, and up from 1.09% at June 30, 2025. During the second quarter of 2026, the allowance increased $229 thousand, reflecting a $222 thousand provision for credit losses and $7 thousand in net recoveries. In the second quarter of 2025, the Company recorded $53 thousand in net charge-offs and reduced the allowance through a $66 thousand provision for credit losses. The allowance was 1.09% of total loans at June 30, 2025.
Footnotes to table located at the end of this release.
LOAN COMPOSITION - Unaudited
As of
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Commercial real estate $480,996 $475,483 $466,293 $471,002 $483,278
Consumer real estate 251,864 238,369 230,379 220,767 223,310
Commercial and industrial 78,375 76,142 71,212 71,802 61,255
Consumer and other 9,506 11,249 12,051 16,426 16,906
Total loans, net of deferred fees 820,741 801,243 779,935 779,997 784,749
Less allowance for credit losses 9,334 9,105 8,827 8,741 8,535
Total loans, net $811,407 $792,138 $771,108 $771,256 $776,214
DEPOSIT COMPOSITION - Unaudited
As of
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
($ in thousands) 2026 2026 2025 2025 2025
Noninterest-bearing $249,674 $247,577 $254,618 $292,107 $219,352
Interest-bearing:
DDA and NOW accounts 102,681 94,579 92,310 98,135 156,062
Money market accounts 368,363 394,279 419,683 360,621 379,078
Savings 35,206 36,168 37,416 38,279 38,995
Time, less than $250,000 120,402 103,678 104,671 126,195 125,607
Time, $250,000 and over 44,003 52,764 39,422 43,963 31,245
Total deposits $920,329 $929,045 $948,120 $959,300 $950,339
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. (OTCQX: FSRL), is based in Florence, South Carolina and has assets of approximately $1.13 billion. The Company employs approximately 160 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 20 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/first-reliance-bancshares-reports-second-quarter-2026-results-302832396.html
SOURCE First Reliance Bancshares, Inc.
