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First Reliance Bancshares Reports Impressive Third Quarter Results for 2025

On October 24, 2025, First Reliance Bancshares, Inc. (OTC:FSRL), the parent company of First Reliance Bank, unveiled their third-quarter financial results, showcasing remarkable growth compared to the same period last year. This report highlights the company’s robust performance in key financial indicators, emphasizing an increase in net income and improvements in operational efficiency.

Key Financial Highlights

In the third quarter of 2025, First Reliance Bancshares reported a net income of $2.7 million, representing a staggering 48.8% increase from $1.8 million recorded in the third quarter of 2024. This translates to approximately $0.33 per diluted share, a significant rise from $0.22 per share from the previous year.

For the first nine months of 2025, total net income reached $8.0 million or $0.96 per diluted share, up from $5.0 million or $0.61 per diluted share during the same timeframe in 2024. These figures highlight a consistent upward trend in profitability for First Reliance.

Another noted milestone was the operating earnings, which rose by 39.2% in the third quarter, totaling $2.7 million, nearly mirroring the net income figure. The tangible book value per share also saw an uptick, increasing 14.6% from $9.89 at the close of September 2024 to $11.33 by the end of September 2025.

Revenue Growth and Operating Efficiency

Net interest income, a critical measure for banks, climbed to $9.5 million, marking a 16.7% increase compared to the previous year's third quarter. This growth resulted from a steady rise in net interest margins, which improved to 3.66%, an uptick from 3.53% in the preceding quarter.

The efficiency ratio also exhibited improvement, dropping from 76.90% in Q3 2024 to 69.61% in Q3 2025. The adjusted efficiency ratio, which excludes certain one-time expenses, reflected a similar robust enhancement. These efficiencies suggest that First Reliance is managing its costs adeptly while boosting its revenue streams.

Loans and Deposits Update

Despite the notable revenue and profit growth, total loans held for investment decreased by $4.8 million, reflecting a strategic decision likely influenced by the sale of North Carolina branches earlier in 2025. The sale affected approximately $9.8 million in loans. In contrast, total deposits rose by $9.0 million, demonstrating a healthy increase of 3.8% annualized, now totaling $959.3 million.

First Reliance's commitment to asset quality remains strong, with nonperforming assets rising slightly to $369 thousand, representing 0.03% of total assets. This indicates a healthy asset quality despite the challenges of the loan portfolio adjustments.

Leadership Remarks

Rick Saunders, the Chief Executive Officer of First Reliance Bancshares, expressed optimism regarding the results. He noted, "Our operating earnings per share saw a 22% improvement from the previous quarter. With our increased net interest margin and a strong deposit base, we've demonstrated resilience in our operations. Credit quality remains robust, with low levels of nonperforming assets and charge-offs."

Additionally, the bank initiated a stock repurchase program aimed at bolstering shareholder value, approving the buyback of up to $3.0 million worth of common stock through June 30, 2026. During Q3 2025, the bank utilized approximately $1.2 million to repurchase 122,316 shares at an average price of $9.71 per share.

Conclusion

In conclusion, First Reliance Bancshares recorded a highly successful third quarter for 2025, demonstrating significant improvements in profitability, operational efficiency, and asset management. As the company moves forward into the last quarter of 2025, stakeholders can look forward to further advancements as it enhances its community bank model to serve customers better and drive investor returns.