#United States #Q2 2025 Results #First Reliance Bancshares #First Reliance Bank #Florence, SC

First Reliance Bancshares Reports Second Quarter 2025 Results

First Reliance Bancshares, Inc. (OTC: FSRL), the parent company of First Reliance Bank, has released its financial statements for the second quarter of 2025, showcasing impressive growth amidst a competitive banking environment. The company's results reflect a strong financial trajectory, aided by strategic decisions and market adaptability.

Major Highlights

For the quarter ending June 30, 2025, First Reliance reported:

• - A net income surge of 88.1%, reaching $3.7 million, equivalent to $0.44 per diluted share.
• - Comparatively, the second quarter of 2024 saw a net income of $1.9 million, or $0.24 per diluted share.
• - The year-to-date net income stood at $5.3 million, which translates to $0.63 per diluted share, an increase from $3.2 million or $0.39 per diluted share in the previous year.

This remarkable performance is evident as operating earnings (Non-GAAP) for the same period amounted to $2.2 million, or $0.27 per diluted share, up from $1.9 million or $0.24 per diluted share in Q2 of 2024.

Analyzing Book Values and Capital Ratios

Another significant aspect of First Reliance’s performance is the increase in its book value per share, which rose by 17.1% to $10.80, a considerable improvement from $9.22 as of June 30, 2024. The tangible book value per share (Non-GAAP) also reflected positive growth, rising by 17.3% to $10.71.

Interest Income Trends

In terms of net interest income, First Reliance reported $9.1 million for Q2 2025, indicating an increase of $1.4 million or 18.8% over the previous year's corresponding quarter. The net interest margin demonstrated improvement, reaching 3.53%, compared to 3.49% for the previous quarter and an increase from 3.20% in Q2 of 2024.

Loan and Deposit Fluctuations

As of June 30, 2025, total loans held for investment increased slightly to $784.7 million, reflecting an annualized growth rate of 0.14%. In terms of unfunded commitments, there was a remarkable increase of $22.3 million, primarily in construction loans.

Despite these gains, total deposits saw a decrease of $28.3 million, or 11.6% annualized, totalling $950.3 million at the end of the quarter. This decline is attributed mainly to the recent sale of two branches in North Carolina, which carried $55.9 million in deposits.

Asset Quality Improvement

First Reliance's asset quality appeared strong, with nonperforming assets reducing significantly to $205 thousand, representing just 0.02% of total assets. This decrease was linked to the recovery of one loan in full and the charge-off of another previously reserved loan. The allowance for credit losses remains robust at 1.09% of total loans receivable, a slight decrease from 1.10% a month prior.

Future Outlook

Rick Saunders, Chief Executive Officer of First Reliance, expressed optimism regarding the bank's performance. The board sanctioned a stock repurchase program of up to $3.0 million to enhance shareholder value, focusing on the company's stock price, liquidity, and growth expectations.

As First Reliance Bancshares continues to navigate the complexities of the financial sector, it is clearly positioning itself for sustained growth and success in the coming quarters, leaning heavily on its commitment to customer satisfaction and community engagement. The company’s impressive financial outcomes underscore its strategic direction and adaptive measures to meet market challenges head-on.

Overall, First Reliance Bancshares exemplifies resilience and strategic foresight within the competitive banking landscape, achieving remarkable financial growth and maintaining a commitment to high-quality service and community banking principles.