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First Reliance Bancshares Reports Fourth Quarter 2024 Results

In a significant financial update, First Reliance Bancshares, Inc. (OTC: FSRL), the parent company of First Reliance Bank, has announced its financial results for the fourth quarter of 2024. This report reveals a robust performance, reflecting the company's ongoing commitment to growth and customer satisfaction.

Fourth Quarter Highlights

First Reliance reported a noteworthy increase in net income, soaring by 18.3% in the fourth quarter, reaching $0.9 million, or $0.11 per diluted share. This marks an improvement from $0.8 million and $0.10 per diluted share from the same period in 2023. Looking at operating earnings, which exclude certain losses and expenses, the results were equally impressive: $1.7 million or $0.21 per diluted share for Q4 2024, compared to $1.4 million or $0.17 per diluted share in Q4 2023.

For the calendar year 2024, First Reliance achieved a net income increase to $5.9 million, translating to $0.71 per diluted share. This is a notable rise from the previous year, which recorded $4.6 million or $0.56 per diluted share, marking a 26.8% increase in profits. Additionally, operating net income for the year rose by 17.2%, reaching $6.8 million.

Key Financial Metrics

One of the standout metrics is the company's book value per share, which saw a jump of 10.4%, increasing from $8.77 to $9.68 over the year. When considering tangible book value, there was a similar increase of 10.5%, improving from $8.68 to $9.59.

The net interest income for the fourth quarter was reported at $8.4 million, marking a nice increase of 15.6% compared to the previous year. On a linked quarter basis, there was also an uptick of 3.7%. This reflects the growing interest margins, which increased to 3.38%, a boost from 3.27% at the end of September 2024, and a 22 basis point improvement year-over-year.

The total loans held for investment grew by 7.9%, now totaling $753.7 million, compared to $739.2 million in the previous quarter. However, total deposits saw a slight decrease of 0.2%, settling at $951.4 million.

Strong Asset Quality

First Reliance maintains a solid asset quality profile, with nonperforming assets recorded at just 0.11% of total assets at the end of December 2024. This increase from $924 thousand to $1.2 million reflects the impact of one significant loan but is still considered strong within the industry. The company continues to manage risk effectively, providing strong reassurance on credit quality.

CEO Commentary

Rick Saunders, CEO of First Reliance Bancshares, expressed satisfaction with the company's performance: "I am pleased that we were able to grow our operating EPS by over 17% for the year while also increasing our tangible book value per share by 10.5%. We have a strong loan pipeline heading into 2025 and will focus on managing expenses while looking forward to increased revenue."

Conclusion

In summary, First Reliance Bancshares has demonstrated remarkable financial resilience and growth throughout 2024. With a strong foundation and a positive outlook, the company is poised to continue its trajectory in 2025. Investors and clients can look forward to seeing how First Reliance capitalizes on these results to enhance its service offerings and market presence in the banking sector.