FLORENCE, S.C., Jan. 29, 2026 /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 fourth quarter of 2025 and calendar year 2025.
Fourth Quarter 2025 Highlights
- Net income increased 218.6% to $2.9 million for the fourth quarter of 2025, or $0.36 per diluted share, compared to $0.9 million, or $0.11 per diluted share, for the fourth quarter of 2024. For the year ended December 31, 2025, net income totaled $10.9 million, or $1.31 per diluted share, compared to $5.9 million, or $0.71 per diluted share in 2024. Operating earnings (Non-GAAP) increased 68% for the fourth quarter of 2025 to $2.9 million, or $0.35 per diluted share, compared to $1.7 million, or $0.21 per diluted share, for the fourth quarter of 2024. For calendar year 2025, operating earnings (Non-GAAP) totaled $9.5 million or $1.14 per diluted share, compared to $6.8 million, or $0.82 per diluted share, for calendar year 2024. This was an increase of $2.7 million, or 39.2%.
- Book value per share increased $2.20, or 22.8%, from $9.68 per share at December 31, 2024, to $11.88 per share at December 31, 2025. Tangible book value per share (Non-GAAP) increased $2.20, or 23%, from $9.59 per share at December 31, 2024, to $11.79 per share at December 31, 2025.
- Net interest income for the fourth quarter of 2025 was $9.6 million, which represents an increase of $1.2 million, or 14.5%, compared to the fourth quarter of 2024. Compared to the third quarter of 2025, the increase was $165 thousand, or 1.75%.
- Net interest margin increased during the fourth quarter of 2025 to 3.71%, compared to 3.66% in the third quarter of 2025, and increased 33 basis points compared to the fourth quarter of 2024.
- The fourth quarter of 2025 efficiency ratio improved to 71.08% down from 86.42% one year ago. The adjusted efficiency ratio (Non-GAAP) improved from 78.29% in the fourth quarter of 2024 to 71.59% in the fourth quarter of 2025.
- Total loans held for investment decreased slightly by $62 thousand, or 0.03% annualized, to $779.9 million at December 31, 2025, from $780.0 million at September 30, 2025. On a year-to-date basis, loans grew $26.2 million, or 3.5%. Excluding the loans that paid off or paid down in North Carolina, where two offices were sold in the second quarter of 2025, and in the declines in indirect automobile loan portfolio, 2025 loan growth totaled $53.7 million, or 7.1%.
- Total deposits decreased $11.2 million, or 4.6% annualized, to $948.1 million at December 31, 2025, from $959.3 million at September 30, 2025.
- Asset quality remains steady, even with nonperforming assets increasing to $2.5 million, or 0.23% of total assets at December 31, 2025, compared to $369 thousand, or 0.03% of total assets at September 30, 2025. This increase was related to an owner-occupied real estate loan in North Carolina totaling $1.4 million and two mortgage loans that are 90 days past due and still accruing. These loans are fully collateralized and no losses are expected.
Rick Saunders, Chief Executive Officer, stated, "We are excited as we head into 2026 given our teams performance in 2025 and the momentum created. In summary, our calendar year 2025 results included operating earnings per share improvement of 39% to $1.14 per diluted share compared to $0.82 per diluted share in 2024. Our net interest margin increased 36 basis points to 3.61% and our adjusted efficiency ratio improved to 72.5% in 2025, down from 77.6% in 2024. Tangible book value per share grew $2.20 per share, an increase of 23%, to $11.79, in 2025. Loan growth exceeded $53.7 million, or 7.1%, excluding the decline from the loan portfolios in North Carolina and from indirect automobiles. Credit quality remained sound with low nonperforming assets and low net charge-offs. It is truly rewarding to see the First Reliance Bank team perform well for our customers and communities, resulting in strong financial results and momentum for 2026."
Financial Summary
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Three Months Ended Twelve Months Ended
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31 Dec 31
($ in thousands, except per share data) 2025 2025 2025 2025 2024 2025 2024
Earnings:
Net income available to common shareholders (GAAP) $2,926 $2,714 $3,653 $1,613 $918 $10,906 $5,923
Operating earnings (Non-GAAP) 2,852 2,714 2,249 1,665 1,698 9,480 6,813
Earnings per common share, diluted (GAAP) 0.36 0.33 0.44 0.19 0.11 1.31 0.71
Operating earnings per common share, diluted (Non-GAAP) 0.35 0.33 0.27 0.20 0.21 1.14 0.82
Total revenue(1) 12,353 12,238 13,920 11,158 9,809 49,669 39,580
Net interest margin 3.71 % 3.66 % 3.53 % 3.49 % 3.38 % 3.61 % 3.25 %
Return on average assets(2) 1.06 % 0.99 % 1.32 % 0.59 % 0.35 % 1.00 % 0.57 %
Return on average assets - Operating Non-GAAP(2) 1.03 % 0.99 % 0.81 % 0.61 % 0.64 % 0.87 % 0.66 %
Return on average equity(2) 12.83 % 12.55 % 17.84 % 8.15 % 4.66 % 12.90 % 7.97 %
Return on average equity - Operating Non-GAAP(2) 12.51 % 12.55 % 10.98 % 8.41 % 8.62 % 11.21 % 9.17 %
Efficiency ratio(3) 71.08 % 69.61 % 64.61 % 75.52 % 86.42 % 69.90 % 79.84 %
Adjusted efficiency ratio - Non-GAAP(3) 71.59 % 69.61 % 74.03 % 75.04 % 78.29 % 72.48 % 77.56 %
As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Balance Sheet:
Total assets $1,093,359 $1,097,846 $1,102,203 $1,097,389 $1,067,104
Total loans receivable 779,935 779,997 784,749 784,469 753,738
Total deposits 948,120 959,300 950,339 978,667 951,411
Total transaction deposits(4) to total deposits 36.59 % 40.68 % 39.50 % 39.46 % 38.64 %
Loans to deposits 82.26 % 81.31 % 82.58 % 80.16 % 79.22 %
Bank Capital Ratios:
Total risk-based capital ratio 13.82 % 13.58 % 12.88 % 12.99 % 13.48 %
Tier 1 risk-based capital ratio 12.72 % 12.48 % 11.84 % 11.92 % 12.43 %
Tier 1 leverage ratio 10.16 % 9.94 % 9.74 % 9.80 % 9.96 %
Common equity tier 1 capital ratio 12.72 % 12.48 % 11.84 % 11.92 % 12.43 %
Asset Quality Ratios:
Nonperforming assets as a percentage of 0.23 % 0.03 % 0.02 % 0.09 % 0.11 %
total assets
Allowance for credit losses as a percentage of total 1.13 % 1.12 % 1.09 % 1.10 % 1.12 %
loans receivable
Annualized net charge-offs (recoveries) as a (0.03 %) 0.02 % 0.03 % 0.08 % 0.00 %
percentage of average total loan receivables
CONDENSED CONSOLIDATED
INCOME STATEMENTS - Unaudited
Three Months Ended Twelve Months Ended
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Dec 31
($ in thousands, except per share data) 2025 2025 2025 2025 2024 2025 2024
Interest income
Loans $11,518 $11,842 $11,657 $11,293 $11,053 $46,310 $42,814
Investment securities 2,302 2,300 2,145 2,166 2,015 8,913 7,831
Other interest income 406 323 505 318 512 1,552 1,845
Total interest income 14,226 14,465 14,307 13,777 13,580 56,775 52,490
Interest expense
Deposits 4,215 4,536 4,703 4,468 4,613 17,922 18,414
Other interest expense 393 476 495 544 564 1,908 2,695
Total interest expense 4,608 5,012 5,198 5,012 5,177 19,830 21,109
Net interest income 9,618 9,453 9,109 8,765 8,403 36,945 31,381
Provision for credit losses 76 90 88 707 141 961 320
Net interest income after provision for credit losses 9,542 9,363 9,021 8,058 8,262 35,984 31,061
Noninterest income
Mortgage banking income 1,405 1,577 1,586 1,351 1,207 5,919 4,803
Service fees on deposit accounts 405 412 299 319 327 1,435 1,297
Debit card and other service charges, 527 531 543 529 550 2,130 2,165
commissions, and fees
Income from bank owned life insurance 107 108 104 102 108 421 418
Loss on sale of securities, net (294) (182) (146) (476) (308)
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 382 (200) (838) 182 (818)
Other income 203 157 166 134 198 660 642
Total noninterest income 2,735 2,785 4,811 2,393 1,406 12,724 8,199
Noninterest expense
Compensation and benefits 5,499 5,431 5,574 5,281 5,028 21,785 19,281
Occupancy and equipment 725 736 770 791 890 3,022 3,417
Data processing, technology, and communications 1,216 1,061 1,143 1,156 1,184 4,576 4,336
Professional fees 85 195 248 153 268 681 739
Marketing 71 155 175 123 103 524 431
Other 1,185 941 1,083 923 1,003 4,132 3,396
Total noninterest expense 8,781 8,519 8,993 8,427 8,476 34,720 31,600
Income before provision for income taxes 3,496 3,629 4,839 2,024 1,192 13,988 7,660
Income tax expense 570 915 1,186 411 273 3,082 1,737
Net income available to common shareholders $2,926 2,714 3,653 1,613 $919 $10,906 $5,923
(Subtract) Addback (gain) loss on fixed assets, net of tax (320) 151 646 (169) 631
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 21
Addback securities losses, net of tax 246 145 113 391 238
Operating net income (non-GAAP) $2,852 $2,714 $2,248 $1,665 $1,699 $9,479 $6,813
Weighted average common shares - basic 7,745 7,902 7,892 7,868 7,851 7,851 7,847
Weighted average common shares - diluted 8,218 8,349 8,350 8,331 8,274 8,328 8,294
Basic net income per common share* $0.38 $0.34 $0.46 $0.21 $0.12 $1.39 $0.75
Diluted net income per common share* $0.36 $0.33 $0.44 $0.19 $0.11 $1.31 $0.71
Operating basic net income per common share (nonGAAP)* $0.37 $0.34 $0.28 $0.21 $0.22 $1.21 $0.87
Operating diluted net income per common share (nonGAAP)* $0.35 $0.33 $0.27 $0.20 $0.21 $1.14 $0.82
*Note that the sum of the quarterly earnings per share may not equal the full YTD earnings per share 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 December 31, 2025, was $2.9 million, or $0.36 per diluted common share, compared to $0.9 million, or $0.11 per diluted common share, for the three months ended December 31, 2024. Operating net income (Non-GAAP), for the three months ended December 31, 2025, was $2.9 million, or $0.35 per diluted common share, compared to $1.7 million, or $0.21 per diluted common share for the three months ended December 31, 2024. Net income for the year ended December 31, 2025, totaled $10.9 million, or $1.31 per diluted common share, compared to $5.9 million, or $0.71 per diluted common share for the year ended December 31, 2024. On an operating basis, diluted EPS (Non-GAAP) was $1.14 per diluted common share, for the year ended December 31, 2025, which includes adding back the impact of securities losses, 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, the impact of net gain from the sale of fixed assets, net of tax and the gain from the early extinguishment of debt, net of tax, compared to $0.82 per operating earnings per diluted common share, for the year ended December 31, 2024.
Noninterest income, for the three months ended December 31, 2025, was $2.7 million, an increase of $1.3 million from $1.4 million for the same period in 2024. Noninterest income was primarily driven by mortgage banking income which totaled $1.4 million in the fourth quarter of 2025 compared to $1.2 million in the fourth quarter of 2024 and increase of $200 thousand. In addition, fixed assets were written down $838 thousand in the fourth quarter of 2024 compared to a gain on the sale of fixed assets of $382 thousand, an increase of $1.2 million in the fourth quarter of 2025. These increases were partially offset by $148 thousand increase in securities losses.
For the year ended December 31, 2025, noninterest income increased by $4.5 million, driven primarily by improved mortgage banking income of $1.1 million, gain on sale of branches of $2.3 million, increase in gain/loss on disposal / write downs of fixed assets of $1.0 million and gain on the early extinguishment of debt of $140 thousand. These increases were partially offset by the increase in securities losses of $168 thousand.
Noninterest expense, for the three months ended December 31, 2025, was $8.8 million, an increase of $303 thousand from $8.5 million for the same period in 2024. This increase in expense was primarily driven by an increase in compensation and benefits of $471 thousand due primarily to mortgage commissions and incentive compensation expense, and the increase in other expense of $182 thousand which was associated with the expense of state income tax credits purchased in the fourth quarter of 2025 of $336 thousand. This increase (of $336 thousand) was partially offset by the reduction of various expenses including lower fraud and forgery losses, lower legal fees associated with loan closings, and lower costs related to branches sold. The increases discussed above were partially offset by lower occupancy and equipment expense of $165 thousand, primarily related to reduced expense due to the disposal of the North Carolina branch locations and lower professional fees of $183 thousand, due primarily to the lower audit expense associated with FDICIA compliance and lower consultant fees.
Noninterest expense, for year-end December 31, 2025, was $34.7 million and increased $3.1 million from the calendar year 2024. This increase in noninterest expense was primarily related to the increase in compensation and benefits of $2.5 million attributable to increases in salaries of $662 thousand, mortgage commissions of $692 thousand, incentive / bonus expense of $278 thousand and performance-based stock compensation expense of $917 thousand. Other expense increased by $736 thousand, which was primarily attributable to the expense for purchased state income tax credit of $336 thousand and increased expenses related to the sale of the two branches in North Carolina of $258 thousand. The other categories of noninterest expense resulted in a net $120 thousand reduction in expense.
During the fourth quarter of 2025, the company purchased state income tax credits (discussed above). These credits reduced state income tax expense by $400 thousand in the fourth quarter of 2025. This impact was reflected in income tax expense of $570 thousand in the fourth quarter of 2025 compared to $915 thousand in the third quarter of 2025.
Operating adjustments - 4Q 2025
During the fourth quarter, 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 $294,000.
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 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 $23 thousand.
NET INTEREST INCOME AND MARGIN - Unaudited - QTD
For the Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
($ in thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits $38,387 $377 3.90 % $35,237 $296 3.33 % $44,366 $485 4.35 %
Investment securities 200,724 2,302 4.55 % 193,519 2,300 4.72 % 179,750 2,015 4.46 %
Nonmarketable equity securities 1,534 29 7.50 % 1,795 26 5.84 % 1,524 27 6.99 %
Loans held for sale 11,234 153 5.40 % 12,381 301 9.65 % 21,610 322 5.93 %
Loans 777,941 11,365 5.80 % 780,426 11,541 5.87 % 741,672 10,731 5.76 %
Total interest-earning assets 1,029,820 14,226 5.48 % 1,023,358 14,465 5.61 % 988,922 13,580 5.46 %
Allowance for credit losses (8,781) (8,508) (8,317)
Noninterest-earning assets 81,142 80,739 78,137
Total assets $1,102,181 $1,095,588 $1,058,742
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts $97,249 $171 0.70 % $123,107 $230 0.74 % $140,981 $245 0.69 %
Savings & money market 431,489 2,758 2.54 % 410,051 2,893 2.80 % 405,445 2,910 2.86 %
Time deposits 159,962 1,286 3.19 % 168,116 1,413 3.33 % 160,417 1,458 3.62 %
Total interest-bearing deposits 688,700 4,215 2.43 % 701,274 4,536 2.57 % 706,843 4,613 2.60 %
FHLB advances and other borrowings 15,272 144 3.74 % 20,652 217 4.17 % 16,332 202 4.93 %
Subordinated debentures 19,783 249 4.99 % 19,775 259 5.19 % 25,750 362 5.59 %
Total interest-bearing liabilities 723,755 4,608 2.53 % 741,701 5,012 2.68 % 748,925 5,177 2.75 %
Noninterest bearing deposits 273,881 253,702 217,863
Other liabilities 13,360 13,666 13,118
Shareholders' equity 91,185 86,519 78,836
Total liabilities and shareholders' $1,102,181 $1,095,588 $1,058,742
equity
Net interest income (tax $9,618 2.95 % $9,453 2.93 % $8,403 2.71 %
equivalent) / interest
rate spread
Net Interest Margin 3.71 % 3.66 % 3.38 %
Cost of funds, including noninterest- 1.83 % 2.00 % 2.13 %
bearing deposits
Net interest income, for the three months ended December 31, 2025, was $9.6 million compared to $8.4 million for the three months ended December 31, 2024. This increase was the result of an increase in interest income of $646 thousand and a decrease in interest expense of $569 thousand. This resulted in an improved net interest margin to 3.71% from 3.38% one year ago. Loans and securities had the largest gains in income and in yields compared to the prior year, partially offset by interest- bearing cash and fed funds sold. While lower yields in all categories of interest-bearing liabilities, except NOW accounts, contributed to the improved net interest margin. In addition, the total cost of funds, including noninterest-bearing deposits, decreased to 1.83% in the fourth quarter of 2025, compared to 2.13% in the fourth quarter of 2024.
NET INTEREST INCOME AND MARGIN - Unaudited - YTD
For the Twelve Months Ended
December 31, 2025
December 31, 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 $38,027 $1,443 3.79 % $38,357 $1,718 4.48 %
Investment securities 190,321 8,913 4.68 % 172,932 7,831 4.53 %
Nonmarketable equity securities 1,671 109 6.52 % 1,803 127 7.01 %
Loans held for sale 14,847 1,171 7.89 % 20,827 1,369 6.57 %
Loans 777,863 45,139 5.80 % 731,688 41,445 5.66 %
Total interest-earning assets 1,022,729 56,775 5.55 % 965,607 52,490 5.44 %
Allowance for credit losses (8,619) (8,427)
Noninterest-earning assets 80,639 78,987
Total assets $1,094,749 $1,036,167
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts $131,197 $873 0.67 % $140,923 $1,018 0.72 %
Savings & money market 424,109 11,650 2.75 % 373,626 11,008 2.95 %
Time deposits 160,932 5,399 3.35 % 172,522 6,404 3.71 %
Total interest-bearing deposits 716,238 17,922 2.50 % 687,071 18,430 2.68 %
FHLB advances and other borrowings 18,364 766 4.17 % 22,313 1,221 5.47 %
Subordinated debentures 21,927 1,142 5.21 % 25,739 1,458 5.67 %
Total interest-bearing liabilities 756,529 19,830 2.62 % 735,123 21,109 2.87 %
Noninterest bearing deposits 240,864 213,190
Other liabilities 12,818 13,508
Shareholders' equity 84,538 74,346
Total liabilities and shareholders' equity $1,094,749 $1,036,167
Net interest income (tax equivalent) / interest $36,945 2.93 % $31,381 2.57 %
rate spread
Net Interest Margin 3.61 % 3.25 %
Cost of funds,including noninterest bearing deposits 1.99 % 2.23 %
Net interest income for calendar year 2025, $36.9 million compared to $31.4 million for calendar year 2024, an increase of $5.6 million. The net interest margin was 3.61% for 2025 compared to 3.25% for 2024. The yield on interest-earning assets improved by 11 basis points to 5.55%, led by loans and investment securities. Yields on all interest-bearing liabilities have declined in all categories, with total yield on interest-bearing liabilities declining by 25 basis points. The total cost of funds, including noninterest-bearing deposits was 1.99% in 2025 compared to 2.23% in 2024.
CONDENSED
CONSOLIDATED BALANCE SHEETS - Unaudited
As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Assets
Cash and cash equivalents:
Cash and due from banks $4,031 $5,072 $4,066 $5,011 $4,604
Interest-bearing deposits with banks 28,101 26,695 29,487 32,922 42,623
Total cash and cash equivalents 32,132 31,767 33,553 37,933 47,227
Investment securities:
Investment securities available for sale 196,043 199,674 194,136 181,596 175,846
Other investments 1,764 1,527 2,497 950 886
Total investment securities 197,807 201,201 196,633 182,546 176,732
Mortgage loans held for sale 12,280 13,336 14,944 22,424 20,974
Loans receivable:
Loans 779,935 779,997 784,749 784,469 753,738
Less allowance for credit losses (8,827) (8,741) (8,535) (8,654) (8,434)
Loans receivable, net 771,108 771,256 776,214 775,815 745,304
Property and equipment, net 24,348 23,313 22,469 21,987 21,353
Mortgage servicing rights 14,656 14,421 14,093 13,614 13,410
Bank owned life insurance 19,029 18,922 18,815 18,710 18,608
Deferred income taxes 6,117 6,221 6,510 6,938 7,709
Other assets 15,882 17,409 18,972 17,422 15,787
Total assets 1,093,359 1,097,846 1,102,203 1,097,389 1,067,104
Liabilities
Deposits $948,120 $959,300 $950,339 $978,667 $951,411
Federal Home Loan Bank advances 20,000 15,000 32,500
Federal funds and repurchase agreements - 207
Subordinated debentures 9,476 9,469 9,461 14,453 15,444
Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310
Reserve for unfunded commitments 822 767 925 771 428
Other liabilities 11,565 13,498 12,560 11,972 11,755
Total liabilities 1,000,293 1,008,344 1,016,302 1,016,173 989,348
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 88 88 88 88 88
authorized
Treasury stock, at cost (8,085) (7,883) (6,654) (6,458) (5,699)
Nonvested restricted stock (1,949) (2,359) (2,536) (2,566) (2,340)
Additional paid-in capital 56,869 56,931 56,708 56,408 55,789
Retained earnings 50,578 47,652 44,937 41,284 39,671
Accumulated other comprehensive loss (4,436) (4,928) (6,643) (7,541) (9,754)
Total shareholders' equity 93,066 89,502 85,901 81,216 77,756
Total liabilities and shareholders' equity $1,093,359 $1,097,846 $1,102,203 $1,097,389 $1,067,104
First Reliance cash and cash equivalents totaled $32.1 million at December 31, 2025, compared to $31.8 million at September 30, 2025. Cash with the Federal Reserve Bank totaled $27.8 million compared to $41.8 million at December 31, 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 $196.0 million and $199.7 million, at December 31, 2025 and September 30, 2025, respectively. The unrealized loss recorded on these securities totaled $5.9 million as of December 31, 2025, compared to $6.5 million at September 30, 2025, a decrease in the unrealized loss during the fourth quarter of $0.6 million (before taxes).
During the quarter ended December 31, 2025, deposits decreased by $11.2 million, or 4.6% annualized. During the fourth quarter of 2025, the bank experienced significant movement of deposits from noninterest-bearing transaction accounts and other interest-bearing accounts to money market accounts. See the table on page 11 for detail.
The Company had $20.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at December 31, 2025, up from $15.0 million at September 30, 2025. The Company had remaining credit availability in excess of $298.8 million with the FHLB of Atlanta, subject to collateral requirements.
First Reliance also has access to approximately $19.0 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
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As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(shares in thousands) 2025 2025 2025 2025 2024
Voting common shares outstanding 8,804 8,794 8,787 8,786 8,764
Treasury shares outstanding (972) (954) (830) (809) (731)
Total common shares outstanding 7,832 7,840 7,957 7,977 8,033
Book value per common share $11.88 $11.42 $10.80 $10.18 $9.68
Tangible book value per common $11.79 $11.33 $10.71 $10.09 $9.59
share - Non-GAAP(5)
Stock price:
High $13.70 $10.21 $10.00 $9.98 $10.24
Low $10.00 $9.36 $9.00 $9.35 $9.16
Period end $12.26 $10.10 $9.60 $9.45 $9.59
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. The repurchase program does not obligate the Company to purchase any particular number of shares and may be modified or terminated by the Company's Board of Directors at any time. During the third quarter of 2025, the Company repurchased 122,316 shares at a weighted-average cost per share of $9.71. During the fourth quarter of 2025, the Company repurchased 13,678 shares at a weighted-average cost per share of $10.73.
ASSET QUALITY MEASURES - Unaudited
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As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Nonperforming Assets
Commercial
Owner occupied RE $1,573 $36 $39 $42 $44
Non-owner occupied RE - 655 646
Construction - 66
Commercial business 31 38 43 146 328
Consumer
Real estate 36 226 39 40 42
Home equity -
Construction -
Other 71 69 84 50 64
Nonaccruing loan modifications -
Total nonaccrual loans $1,711 $369 $205 $933 $1,190
Loans past due 90 days or more & accruing interest 744
Other assets repossessed 6 11
Total nonperforming assets $2,461 $369 $205 $933 $1,201
Nonperforming assets as a percentage of:
Total assets 0.23 % 0.03 % 0.02 % 0.09 % 0.11 %
Total loans receivable 0.32 % 0.05 % 0.03 % 0.12 % 0.16 %
Accruing loan modifications $668 $683 $797 $369 $400
Three Months Ended
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Allowance for Credit Losses
Balance, beginning of period $8,741 $8,535 $8,654 $8,434 $8,317
Loans charged-off 15 48 110 163 24
Recoveries of loans previously charged-off 80 6 57 19 18
Net (recoveries) charge-offs (65) 42 53 144 6
Provision for credit (recovery of) losses 21 248 (66) 364 123
Balance, end of period $8,827 $8,741 $8,535 $8,654 $8,434
Allowance for credit losses to gross loans receivable 1.13 % 1.12 % 1.09 % 1.10 % 1.12 %
Allowance for credit losses to nonaccrual loans 515.87 % 2368.83 % 4163.41 % 927.54 % 708.74 %
Asset quality reflected an increase of $2.1 million in nonperforming assets during the fourth quarter of 2025, with nonperforming assets increasing to $2.5 million, which represents 0.23% of total assets. This increase was attributable to a $1.4 million loan in North Carolina that is supported by strong collateral, and two mortgage loans that are 90 days past due and still accruing interest totaling $744 thousand. There was no individual reserve for credit loss assigned to any of these loans at December 31, 2025. The allowance for credit losses as a percentage of total loans receivable increased to 1.13% at December 31, 2025, compared to 1.12% at September 30, 2025, and 1.12% at December 31, 2024. The allowance for credit losses increased by a provision for credit losses of $21 thousand and increased by net recoveries of $65 thousand, during the fourth quarter of 2025.
For the full year of 2025, the company recorded $174 thousand in net charge-offs, or 2 basis points of average loans, compared to $259 thousand in net charge-offs, or 4 basis points of average loans, in 2024.
Footnotes to table located at the end of this release.
LOAN COMPOSITION - Unaudited
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As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Commercial real estate $466,293 $471,002 $483,278 $482,201 $463,301
Consumer real estate 230,379 220,767 223,310 216,964 204,303
Commercial and industrial 71,212 71,802 61,255 65,573 65,980
Consumer and other 12,051 16,426 16,906 19,731 20,154
Total loans, net of deferred fees 779,935 779,997 784,749 784,469 753,738
Less allowance for credit losses 8,827 8,741 8,535 8,654 8,434
Total loans, net $771,108 $771,256 $776,214 $775,815 $745,304
DEPOSIT COMPOSITION - Unaudited
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As of
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
($ in thousands) 2025 2025 2025 2025 2024
Noninterest-bearing $254,618 $292,107 $219,352 $224,031 $227,471
Interest-bearing:
DDA and NOW accounts 92,310 98,135 156,062 162,129 140,116
Money market accounts 419,683 360,621 379,078 393,736 381,602
Savings 37,416 38,279 38,995 39,719 40,627
Time, less than $250,000 104,671 126,195 125,607 122,613 120,397
Time, $250,000 and over 39,422 43,963 31,245 36,439 41,198
Total deposits $948,120 $959,300 $950,339 $978,667 $951,411
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 committed to improving the lives of our customers, associates, and the communities in South Carolina that we serve. We achieve this by delivering a better banking experience characterized by exceptional service. With $1.1 billion in assets, we employ 161 professionals across nine locations throughout South Carolina. First Reliance offers a wide range of consumer and business banking solutions, as well as mortgage services. 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
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SOURCE First Reliance Bancshares, Inc.
