#United States #Florence #First Reliance Bank #Fourth Quarter 2025 #FSRL

First Reliance Bancshares Reports Strong Financial Results for Q4 2025

First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank, has revealed its financial performance for the fourth quarter and the entire year of 2025. The results indicate remarkable growth in various key metrics, propelling the company toward a promising 2026.

Fourth Quarter Highlights

In the fourth quarter of 2025, First Reliance achieved a net income of $2.9 million, marking a substantial increase of 218.6% from $0.9 million in the fourth quarter of 2024. Correspondingly, the earnings per diluted share surged to $0.36 from $0.11, reflecting the company’s robust growth trajectory.

Operating earnings (Non-GAAP) also witnessed a significant rise, reaching $2.9 million or $0.35 per diluted share. This represents a 68% increase compared to $1.7 million or $0.21 per diluted share in the same quarter the previous year. For the entirety of 2025, the total net income stood at $10.9 million, which translates to $1.31 per diluted share, in stark contrast to $5.9 million or $0.71 per diluted share in 2024.

Year-End Financial Overview

The fiscal year 2025 concluded positively for First Reliance, as operating earnings increased 39.2%, totaling $9.5 million or $1.14 per diluted share, up from $6.8 million or $0.82 per diluted share in 2024. The book value per share significantly improved by 22.8%, reaching $11.88, up from $9.68 the previous year. This upwards movement demonstrates not only strong financial health but also effective management strategies in increasing shareholders' equity. Additionally, the tangible book value per share showed a commendable increase of 23%.

Improvements in Net Interest Income and Margin

First Reliance reported a net interest income of $9.6 million, reflecting a 14.5% enhancement compared to the fourth quarter of 2024. This growth in net interest income is commendable, especially considering the backdrop of fluctuating interest rates in the financial sector.

The net interest margin exhibited a positive trend, enhancing to 3.71%, compared to 3.38% for the corresponding quarter last year. Continuous efforts to manage resources efficiently contributed to this improvement. The efficiency ratio also saw significant improvement, reducing to 71.08% compared to 86.42% in the previous year, showcasing superior operational efficiency within the bank.

Loan and Deposit Trends

The total loans held for investment saw a slight decrease of $62 thousand to $779.9 million on December 31, 2025, with an overall growth of 3.5% or $26.2 million year-to-date. Notably, excluding specific portfolio adjustments in North Carolina and declines in indirect automobile loans, the company experienced a loan growth of 7.1% in 2025.

Meanwhile, total deposits decreased by $11.2 million, dropping to $948.1 million at year-end. However, the bank has maintained a strong base despite this minor decrease in deposits, reflecting the ongoing dynamics in the financial landscape.

Asset Quality and Outlook

The asset quality remained stable, even with a rise in nonperforming assets, which amounted to $2.5 million, constituting 0.23% of total assets by year-end. This increase correlates with ongoing efforts to manage loan portfolios effectively, ensuring adequate collateralization and risk management strategies.

Rick Saunders, the Chief Executive Officer, expressed optimism about the company’s trajectory into 2026, citing financially strong results, a growing net interest margin, and notable improvements in operational efficiencies. The company’s commitment to delivering exceptional banking experiences continues to resonate well with customers and communities across South Carolina.

Looking ahead, First Reliance Bancshares aims to leverage its strong foundation and positive momentum as it navigates the financial landscape of 2026 and beyond, focusing on enhancing customer value and sustainable growth.