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First Reliance Bancshares Reports Third Quarter Results for 2026

FLORENCE, S.C., Oct. 28, 2026 - First Reliance Bancshares, Inc. (OTCQX: FSRL), the parent company of First Reliance Bank, has today declared its financial performance for the third quarter of 2026, marking another stable quarter for the institution.

Financial Highlights

For the third quarter of 2026, First Reliance unveiled a net income of $2.7 million, equal to $0.33 per diluted share, a figure consistent with the same quarter from the previous year. Over the nine-month period ending on September 30, 2026, net income rose to $9 million, or $1.10 per diluted share. This reflects an improvement from the $8 million net income recorded during the same timeframe in 2025.

Operating earnings (Non-GAAP) for the quarter also grew to $2.9 million, totaling to $9.2 million for the nine-month period, compared to $6.6 million in 2025. The book value per share climbed to $12.40, an increase of 8.6% year on year, evidencing the institution’s commitment to increase shareholder value.

Loan & Deposit Activity

In terms of lending, the total loans held for investment saw a slight decrease of 4.1% annualized, dropping to $812.3 million on September 30, 2026, from $820.7 million on June 30, 2026. However, total loan growth for 2026 stood at $32.4 million, or 5.5% annualized.

Similarly, total deposits increased by $2.1 million or 0.90% annualized, resulting in deposits amounting to $922.4 million. Notably, nonperforming assets rose to $6.6 million, attributed primarily to a single nonaccrual loan totaling $5.5 million, which is adequately collateralized.

Future Developments

Looking ahead, First Reliance is set to finalize a merging agreement with Colony Bank (CBAN), headquartered in Fitzgerald, Georgia. All necessary regulatory approvals and shareholder consents have been granted, with final closing projected for November 1, 2026. The merger is poised to create a financial entity with nearly $5 billion in total assets after the systems integration scheduled for June 2027.

"We experienced a steady quarter in terms of earnings, though our margin faced slight compression compared to last quarter as a result of rising interest rates affecting our securities portfolio," stated Rick Saunders, CEO of First Reliance. He also emphasized the strategic nature of the merger with Colony Bank as pivotal for expanding market reach and solidifying the company's competitive edge.

The continuous dedication of First Reliance to efficiency was mirrored in an adjusted efficiency ratio of 72.33%, demonstrating effective management of operational costs.

Conclusion

First Reliance Bancshares remains focused on delivering value to its shareholders through proactive financial management and strategic partnerships. Stakeholders can expect further updates as the merger with Colony Bank approaches its completion, potentially enhancing the service offerings and operational scale of First Reliance Bank.

Investors and the general public are encouraged to stay informed of future announcements as the company continues its trajectory of growth and community banking excellence.