First Reliance Bancshares Celebrates Strong Growth in Q1 2025 Performance Metrics

First Reliance Bancshares Reports First Quarter 2025 Financial Results

First Reliance Bancshares, Inc., the parent company of First Reliance Bank, has disclosed its financial performance for the first quarter of 2025, showcasing impressive growth metrics that reflect strong operational outcomes.

Financial Highlights

For the first quarter of 2025, First Reliance reported net income of $1.6 million, translating to $0.19 per diluted share. This marks a significant 30.3% increase from the $1.2 million, or $0.15 per diluted share, recorded in the same quarter last year. Noteworthy is the operating earnings, which reached $1.7 million, or $0.20 per diluted share, compared to $1.2 million, or $0.15 per diluted share, reported in Q1 2024.

Additionally, the company notably increased its book value per share from $8.86 at the end of March 2024 to $10.18 by March 31, 2025. The tangible book value also surged, showcasing a notable rise of 15.1% to $10.09 from the previous year's $8.77.

Interest Income and Loans Growth

The quarter saw a robust net interest income of $8.8 million, which is a 21.6% increase compared to the same period in 2024. The net interest margin (NIM) also expanded to 3.49%, up from 3.11% year-over-year, illustrating improved efficiency in earning potential on loans and other interest-earning assets.

Total loans held for investment increased significantly, by $30.7 million or 16.3% annualized, reaching $784.5 million. This increment is also robust compared to the $753.7 million reported at year-end 2024 and a substantial increase from $725.2 million recorded in March 2024.

Deposits and Asset Quality

First Reliance experienced a strong influx of deposits, totaling $978.7 million, reflecting an increase of $27.3 million or 11.5% annualized from the previous quarter. Year-on-year, this represents a $97.4 million rise in total deposits since Q1 2024.

The bank's asset quality remains commendable, with nonperforming assets declining to $933,000, representing 0.09% of total assets, down from $1.2 million (0.11%) at year-end 2024. Furthermore, the allowance for credit losses as a percentage of loans dropped to 1.10%, indicating continued effective risk management.

Team and Community Commitment

CEO Rick Saunders emphasized the company's mission to enhance balance sheet growth and service efficiency. The consistent improvement in operational measures reflects strong financial management and a dedication to community service. The successful management of credit risks and asset quality further bolsters confidence in future sustainability.

As part of its commitment to serve local communities, First Reliance continues to enhance its banking solutions to meet evolving needs. The anticipated closing of the two branch locations in North Carolina, now set for late May 2025, is projected to streamline operations and improve efficiency.

Conclusion

In summary, First Reliance Bancshares' first-quarter results underscore a significant upward trend, driven by strategic financial practices, increased loans and deposits, and a steadfast commitment to community engagement. These developments signal not only growth but an enduring commitment to providing exceptional financial services to their clientele. The outlook for the remainder of 2025 appears promising as the company remains poised to build on its successes.