FLORENCE, S.C., April 22 /PRNewswire-FirstCall/ -- First Reliance
Bancshares, Inc., (OTC:FSRL) (BULLETIN BOARD: FSRL) , the holding
company for First Reliance Bank, today announced unaudited net
income for the quarter ended March 31, 2008 of $826,123. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO ) Unaudited
net income for the quarter ended March 31, 2008 was $826,123, an
increase of $118,916, or 17%, over the $707,207 reported for the
quarter ended March 31, 2007. Earnings benefited from strong growth
in both net interest income and non-interest income. Specifically,
net interest income increased 13% to $4,967,984 for the quarter
ended March 31, 2008, while non-interest income increased by 6% to
$1,261,044. Basic earnings per share were $0.24, an increase of
$0.03, or 12%, from $0.21 reported in the prior- year period. The
earnings per share for the quarter ended March 31, 2008 is based on
average shares of 3,513,174 compared to 3,432,022 shares reported
in the prior- year period. At March 31, 2008, total assets were
$597.6 million, an increase of $114 million, or 24% over the $483.5
million reported for March 31, 2007. Loans increased by $94.9
million, or 25% to $467.5 million, funded primarily by growth in
deposits. Deposits increased by $41.7 million, or 10% to $450
million. "Record high net income results were seen during the first
quarter of 2008," commented Rick Saunders, President and CEO. "Our
net income was the highest in the bank's history due largely to
market opportunities, improved rate conditions and margin
expansion, and diligent expense management practices. "Our focus
for 2008 is to grow core deposits, leverage our customer loyalty
ratings, while improving our operating efficiencies and controlling
and managing operating expenses. Our emphasis on expense management
has proven successful thus far as our noninterest expense increased
a nominal 3% quarter over quarter." "Despite a recent increase in
nonperforming loans reported in the first quarter of 2008, our
asset quality remains satisfactory. Nonperforming loans are limited
in number and are relatively isolated to a specific market. We
continue to aggressively fund our loan loss reserve as we expensed
a record $501,603 to the allowance for loan losses in the first
quarter of 2008. Our proactive and aggressive risk management
systems continue to provide us with the confidence that we are
taking appropriate actions to maintain our asset quality."
"Throughout 2008 we will continue to take great strides to further
enhance our commitment to be Easy To Do Business With(TM). During
the second quarter we will unveil two new products aimed at
providing our customers a more convenient banking experience. Our
safe and secure eStatements will provide customers with faster
statement delivery and the ability to view their statements from
anywhere they have access to a personal computer and email. In
addition to eStatements, we have also added Easy Link Remote
Deposit Capture to our suite of convenient products and services,
making it quick and easy for our business customers to make their
deposits from their place of business. It is our belief that these
new innovative products and services will enhance our strategic
focus of growing our low cost/no cost deposit accounts and
improving our operating efficiencies." "Directly inline with our
Easy To Do Business With(TM) standard of banking, we will further
expand the franchise during 2008 by opening a new branch in West
Columbia. Additional expansion efforts will be announced throughout
the year. We believe that we are well positioned to continue our
positive trends, and we look forward to making 2008 the most
successful year in the company's history." The Company's one bank
subsidiary, First Reliance, has been recognized for its success
including being the only bank ever to be named to The Top 25
Fastest Growing Companies(TM) in South Carolina four
times(ElliottDavis). First Reliance Bank operates in 5 branch
locations and 2 loan production offices. It's Easy To Do Business
With(TM) products and services include: Totally FREE Checking,
Totally FREE Business Checking, FREE Coin Machines, a 5 Way
Mortgage Service Promise, a Nationwide NO FEE ATM Network, and 8-8
Extended Hours in their Florence, Lexington, and Mt. Pleasant
locations. Based in Florence, South Carolina, First Reliance
Bancshares, Inc., is a bank holding company with approximately
$591.7 million in assets as of December 31, 2007. First Reliance
Bank, which was opened in 1999, is the Company's sole operating
subsidiary. The bank has 2 branch locations, a Technology Center,
and a Learning Center in Florence, SC. In addition, the bank's
aggressive statewide growth strategy includes current branches in
Lexington, Mount Pleasant and downtown Charleston, SC, and Loan
Production offices in Myrtle Beach and Greenville, SC. Additional
branch expansions include new sites located in Charleston, the
Midlands Region, and the Upstate Region. The Company's stock is
traded on the OTC Bulletin Board under the symbol FSRL.OB.
Information about the Company is available on our website at
http://www.firstreliance.com/. This press release contains
forward-looking statements about branch openings within the meaning
of the Securities Litigation Reform Act of 1995. Forward-looking
statements give our expectations or forecasts of future events. Any
or all of our forward-looking statements here or in other
publications may turn out to be incorrect. They can be affected by
inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining
our actual future results. Consequently, no forward- looking
statements can be guaranteed. Our actual results may vary
materially, and there are no guarantees about the performance of
our stock. We undertake no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future results or otherwise. You are advised, however, to consult
any future disclosures we make on related subjects in our reports
to the SEC. Contact: Jeffrey A. Paolucci Senior Vice President and
Chief Financial Officer (843) 674-3250 First Reliance Bancshares,
Inc. Consolidated Reports of Income Three Months Three Months Ended
Ended Mar 31,2008 Mar 31,2007 (Unaudited) (Unaudited) Interest
Income Loans and Fees 9,099,475 7,892,673 Investment Securities
Taxable 346,384 234,334 Tax exempt 327,610 170,141 Federal funds
sold 1,893 78,659 Other interest income 51,290 40,305 Total
9,826,652 8,416,112 Interest Expense Time deposits $100,000 and
over 2,037,053 1,392,470 Other deposits 1,902,095 2,187,668 Other
interest expense 919,520 447,293 Total 4,858,668 4,027,431 Net
Interest Income 4,967,984 4,388,681 Provision for loan losses
(501,603) (135,234) Net Interest Income after provision 4,466,381
4,253,447 Noninterest Income Service charges on deposit accounts
437,135 442,670 Gain on sale of mortgage loans 558,687 470,242
Brokerage fees 50,330 40,860 Credit life insurance commissions
1,463 3,299 Other charges, commissions and fees 111,809 74,463 Gain
on sale of securities available for sale - 1,021 Gain on sale of
other real estate (70,750) 9,365 Gain on sale of fixed assets -
14,415 Other 172,370 136,850 Total 1,261,044 1,193,185 Noninterest
Expense Salaries and benefits 2,944,751 2,595,775 Occupancy 339,703
337,396 Furniture and equipment related 212,959 190,661 Other
operating 1,166,233 1,381,410 Total 4,663,646 4,505,242 Income
before tax 1,063,779 941,390 Income tax expense 237,656 234,183 Net
Income 826,123 707,207 Basic earnings per share 0.24 0.21 Diluted
earnings per share 0.23 0.20 First Reliance Bancshares, Inc.
Balance Sheet March 31 March 31 December 31 2008 2007 2007
(Unaudited) (Unaudited) Audited Assets: Cash and Cash Equivalents
Cash and Due From Banks 7,929,684 8,838,605 7,164,651 Federal funds
sold - 24,069,000 - Total cash and cash equivalents 7,929,684
32,907,605 7,164,651 Investment securities Securities available for
sale 57,630,118 35,644,764 58,580,313 Nonmarketable equity
securities 4,372,200 1,780,400 3,930,400 Investment in trust
310,000 310,000 310,000 Total investment securities 62,312,318
37,735,164 62,820,713 Loans held for sale 18,403,137 8,099,771
19,600,850 Loans receivable 473,069,194 376,786,671 468,137,690
Less allowance for loan losses (5,539,601) (4,134,062) (5,270,607)
Loans, net 467,529,593 372,652,609 462,867,083 Premises, furniture,
and equipment, net 23,713,588 15,540,456 22,233,746 Accrued
interest receivable 2,977,560 2,274,308 3,092,767 Other real estate
owned 327,950 1,087,537 196,949 Cash surrender value life insurance
10,662,027 10,234,776 10,540,273 Other assets 3,737,044 3,015,590
3,187,180 Total Assets 597,592,901 483,547,816 591,704,212
Liabilities: Deposits: Noninterest bearing transaction accounts
45,178,443 50,252,975 43,542,528 Interest bearing transaction
accounts 31,058,228 31,372,785 39,450,392 Savings 90,229,421
79,117,431 85,819,481 Time deposits $100,000 and over 185,683,283
135,534,391 169,825,252 Other time deposits 97,861,715 112,034,558
110,860,062 Total deposits 450,011,090 408,312,140 449,497,715
Securities sold under agreements to repurchase 7,858,845 8,671,324
7,927,754 Federal funds purchased 11,482,000 - 13,359,000 Advances
from Federal Home Loan Bank 73,500,000 19,000,000 69,000,000 Junior
subordinated debentures 13,310,000 10,310,000 13,310,000 Accrued
interest payable 684,067 749,925 767,577 Other liabilities
2,960,384 1,405,008 814,261 Total Liabilities 559,806,386
448,448,397 554,676,307 Shareholders' Equity: Common Stock 35,132
34,596 34,946 Capital Surplus 26,047,924 25,567,900 25,875,013
Restricted Stock (273,344) (112,946) (152,762) Retained Earnings
12,039,496 9,564,963 11,417,276 Accumulated other comprehensive
income 94,282 44,906 (1,370) Treasury Stock (156,975) - (145,198)
Total Shareholders Equity 37,786,515 35,099,419 37,173,103 Total
Liabilities and Shareholders Equity 597,592,901 483,547,816
591,849,410 http://www.newscom.com/cgi-bin/prnh/20041022/CLF051LOGO
http://photoarchive.ap.org/ DATASOURCE: First Reliance Bancshares,
Inc. CONTACT: Jeffrey A. Paolucci, Senior Vice President and Chief
Financial Officer, +1-843-674-3250, , of First Reliance Bancshares,
Inc. Web site: http://www.firstreliance.com/
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