PR Newswire | Jul 20, 2021 04:30PM EDT

07/20 15:30 CDT

First Reliance Bancshares Reports Second Quarter 2021 Results FLORENCE, S.C., July 20, 2021

FLORENCE, S.C., July 20, 2021 /PRNewswire/ --First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the second quarter of 2021.

Second Quarter 2021 Highlights

* Net income for the second quarter of 2021 was $1.3 million, or $0.17 per diluted share, compared to $3.9 million, or $0.49 per diluted share, for the second quarter of 2020. * Net interest income for the quarter was $6.2 million, which represents an increase of $0.6 million, or 11.1%, on a linked quarter basis and $0.3 million, or 4.2%, compared to the same period in 2020. * Total loans, excluding Paycheck Protection Program (PPP) loans, increased $52.8 million, or 11.2%, to $526.4 million at June 30, 2021 from $473.5 million at March 31, 2021. * Total deposits increased $50.3 million, or 7.6%, to $711.5 million at June 30, 2021 from $661.2 million at March 31, 2021. This growth was primarily driven by noninterest-bearing deposits and money market deposits, which increased $18.0 million and $31.8 million, respectively. * Asset quality remained strong, with nonperforming assets as a percentage of total assets remaining unchanged from the previous quarter at 0.17%. * The Company had net recoveries of $47 thousand, or annualized (0.04%) of average loans (excluding PPP) during the quarter compared to net charge-offs of $340 thousand, or annualized 0.28% of average loans (excluding PPP), for the same period in 2020. * Cost of funds for the second quarter of 2021 decreased to 0.29% from 0.34% on a linked quarter basis and from 0.61% for the same period in 2020. * Included in compensation and benefits for the current quarter is approximately $0.4 million in severance expense. * The Company completed the sale of its PPP loan portfolio during the quarter, resulting in a net gain on sale of $0.3 million.

Rick Saunders, Chief Executive Officer, remarked on the quarter: "Our second quarter results represent the commencement of the growth phase of our strategic plan. We've made significant investments in our infrastructure from a talent and technology standpoint and we're now seeing returns on those investments with excellent growth in both loans and deposits. Our loan pipelines have continued to build, and we have the balance sheet strength to continue executing our growth strategy in the coming quarters. Additionally, one of our core principals is maintaining high underwriting standards, which we will not compromise for the sake of growth. In our mortgage business, we've continued building out our retail channel by hiring high performing producers in our Charleston, Columbia, and Charlotte markets."

Mr. Saunders continued, "As we move forward in the execution of our growth strategy, one of our top objectives is to achieve material operating scale in our business. As part of our strategic plan, we have established both intermediate and long-term targets on revenue and costs in order to drive improved efficiency and operating scale as we grow."

Mr. Saunders concluded, "I want to thank all of our team members for their continued dedication to our core values and their commitment to our customers, our communities, and our shareholders. I'm proud to be a part of this organization and look forward to more bright days ahead."

Financial Summary

Three Months Ended Six Months Ended

June 30 Mar 31 Dec 31 Sept 30 June 30 June 30 June 30

($ in thousands, except per share data) 2021 2021 2020 2020 2020 2021 2020

Earnings:

Net income available to common shareholders $ 1,348 $ 1,708 $ 1,389 $ 4,468 $ 3,901 $ 3,056 $ 4,759

Earnings per common share, diluted 0.17 0.21 0.17 0.56 0.49 0.37 0.59

Total revenue^(1) 10,169 9,917 10,858 14,820 13,241 20,086 20,783

Net interest margin 3.40% 3.36% 3.27% 3.86% 3.55% 3.41% 3.85%

Return on average assets^(2) 0.67% 0.93% 0.72% 2.31% 2.12% 0.80% 1.39%

Return on average equity^(2) 7.83% 9.91% 8.08% 27.73% 26.20% 8.87% 16.15%

Efficiency ratio^(3) 81.82% 77.35% 80.05% 54.28% 54.40% 79.61% 62.27%

Footnotes to table located at the end of this release.

As of

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Balance Sheet:

Total assets $ 832,241 $ 777,735 $ 710,168 $ 781,655 $ 762,647

Total loans receivable 526,362 490,326 477,968 478,745 512,384

Total deposits 711,505 661,217 594,000 595,767 582,361

Total transaction deposits^(4) to total deposits 48.92% 49.78% 48.51% 47.30% 49.62%

Loans to deposits 73.98% 74.16% 80.47% 80.36% 87.98%

Bank Capital Ratios:

Total risk-based capital ratio 14.89% 16.00% 15.67% 14.75% 13.31%

Tier 1 risk-based capital ratio 13.84% 14.87% 14.52% 13.72% 12.48%

Tier 1 leverage ratio 10.43% 11.13% 10.31% 9.96% 9.68%

Common equity tier 1 capital ratio 13.84% 14.87% 14.52% 13.72% 12.48%

Asset Quality Ratios:

Nonperforming assets as a percentage of 0.17% 0.17% 0.21% 0.19% 0.21% total assets

Allowance for loan losses as a percentage of 1.20% 1.26% 1.29% 1.20% 0.92% total loans receivable

Footnotes to table located at the end of this release.

CONDENSED CONSOLIDATEDINCOME STATEMENTS - Unaudited

Three Months Ended Six Months Ended

June 30 Mar 31 Dec 31 Sept 30 June 30 June 30

($ in thousands, except per share data) 2021 2021 2020 2020 2020 2021 2020

Interest income

Loans $ 6,391 $ 5,851 $ 6,156 $ 7,403 $ 6,650 $ 12,242 $ 13,218

Investment securities 311 238 231 218 299 550 622

Other interest income 38 60 75 67 41 97 131

Total interest income 6,740 6,149 6,462 7,688 6,990 12,889 13,971

Interest expense

Deposits 255 286 376 519 652 541 1,480

Other interest expense 265 262 388 400 371 527 707

Total interest expense 520 548 764 919 1,023 1,068 2,187

Net interest income 6,220 5,601 5,698 6,769 5,967 11,821 11,784

Provision for loan losses 108 - 350 1,000 1,178 108 1,558

Net interest income after provision for loan 6,112 5,601 5,348 5,769 4,789 11,713 10,226 losses

Noninterest income

Mortgage banking income 2,582 3,390 5,014 7,115 6,633 5,972 7,395

Service fees on deposit accounts 272 279 315 290 242 551 705

Debit card and other service charges, 509 454 427 426 429 963 744 commissions, and fees

Income from bank owned life insurance 94 93 101 103 102 188 205

Gain (loss) on sale of securities, net 39 - 8 - (211) 39 (220)

Gain on sale of loans 326 - - - - 326 -

Loss on extinguishment of debt - - (287) - - - -

Loss on disposal of fixed assets - - (528) - - - -

Other income 127 100 110 117 79 226 170

Total noninterest income 3,949 4,316 5,160 8,051 7,274 8,265 8,999

Noninterest expense

Compensation and benefits 5,518 4,992 5,359 4,892 4,395 10,509 7,978

Occupancy 584 597 641 628 619 1,181 1,231

Furniture and equipment 403 450 616 572 585 854 1,122

Electronic data processing 319 277 241 231 200 596 394

Professional fees 242 238 400 230 329 480 596

Marketing 88 69 155 122 56 157 133

Other 1,166 1,048 1,280 1,288 771 2,214 1,549

Total noninterest expense 8,320 7,671 8,692 7,963 6,955 15,991 13,003

Income before provision for income taxes 1,741 2,246 1,816 5,857 5,108 3,987 6,222

Income tax expense 393 538 427 1,389 1,207 931 1,463

Net income available to common shareholders $ 1,348 $ 1,708 $ 1,389 $ 4,468 $ 3,901 $ 3,056 $ 4,759

Weighted average common shares - basic 7,681 7,780 7,931 7,929 7,915 7,730 7,908

Weighted average common shares - diluted 8,164 8,168 8,089 8,015 7,998 8,207 8,010

Basic income per common share $ 0.18 $ 0.22 $ 0.18 $ 0.56 $ 0.49 $ 0.40 $ 0.60

Diluted income per common share $ 0.17 $ 0.21 $ 0.17 $ 0.56 $ 0.49 $ 0.37 $ 0.59

Net income for the three months ended June 30, 2021 was $1.3 million, or $0.17 per diluted common share, compared to $3.9 million, or $0.49 per diluted common share, for the three months ended June 30, 2020. Net income for the six months ended June 30, 2021 totaled $3.1 million, or $0.37 per diluted common share, compared to $4.8 million, or $0.59 per diluted common share for the six months ended June 30, 2020.

Noninterest income for the three months ended June 30, 2021 was $3.9 million, a decrease of $3.4 from $7.3 million for the same period in 2020. Noninterest income is largely driven by the Company's mortgage banking division, which produced net revenue of $2.6 million on $119 million of mortgage sale volume during the three months ended June 30, 2021. The primary driver of the decrease in mortgage banking income period-over-period was a decrease in margin on loan sales. Additionally, growth in the retail channel drove the increased utilization of bank portfolio products. This negatively affected gain on sale during the quarter by approximately $0.4 million. Also included in noninterest income for the three months ended June 30, 2021 is a $0.3 million gain on the sale of the Bank's PPP loan portfolio.

Noninterest expense increased by $1.4 million or 19.6%, for the three months ended June 30, 2021 compared to the same period in 2020. The increase in noninterest expense is largely driven by an increase of $1.1 million in compensation and benefits. Included in compensation and benefits for the current quarter is approximately $0.4 million in severance expense. The additional increase in compensation and benefits is driven mainly by increased headcount year-over-year.

NET INTEREST INCOME AND MARGIN - Unaudited

For the Three Months Ended

June 30, 2021 June 30, 2020

Average Income/ Yield Average Income/ Yield / /

(dollars in thousands) Balance Expense Rate Balance Expense Rate

Assets

Interest-earning assets

Federal funds sold and interest-bearing deposits $ 122,289 $ 29 0.09% $ 50,290 $ 12 0.09%

Investment securities 55,991 311 2.23% 41,189 299 2.91%

Nonmarketable equity securities 837 9 4.29% 4,089 29 2.85%

Loans held for sale 33,573 232 2.77% 64,501 473 2.91%

Loans 520,326 6,159 4.75% 500,921 6,177 4.89%

Total interest-earning assets 733,016 6,740 3.69% 660,990 6,990 4.20%

Allowance for loan losses (6,346) (4,085)

Noninterest-earning assets 74,317 77,900

Total assets $ 800,987 $ 734,805

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts $ 132,495 $ 15 0.05% $ 103,652 $ 15 0.06%

Savings & money market 210,786 89 0.17% 127,968 104 0.33%

Time deposits 134,858 151 0.45% 151,414 533 1.41%

Total interest-bearing deposits 478,139 255 0.21% 383,034 652 0.68%

FHLB advances and other borrowings 16,997 47 1.11% 87,523 182 0.83%

Subordinated debentures 20,801 218 4.20% 16,942 189 4.45%

Total interest-bearing liabilities 515,937 520 0.40% 487,499 1,023 0.84%

Noninterest bearing deposits 205,556 176,688

Other liabilities 10,635 11,057

Shareholders' equity 68,859 59,561

Total liabilities and shareholders' equity $ 800,987 $ 734,805

Net interest income / interest rate spread $ 6,220 3.29% $ 5,967 3.36%

Net interest margin 3.40% 3.58%

For the Six Months Ended

June 30, 2021 June 30, 2020

Average Income/ Yield Average Income/ Yield / /

(dollars in thousands) Balance Expense Rate Balance Expense Rate

Assets

Interest-earning assets

Federal funds sold and interest-bearing deposits $ 113,483 $ 58 0.10% $ 34,127 $ 69 0.40%

Investment securities 47,643 550 2.33% 43,208 622 2.89%

Nonmarketable equity securities 946 39 8.27% 3,162 62 3.91%

Loans held for sale 35,910 496 2.78% 42,091 674 3.21%

Loans 502,001 11,746 4.72% 491,373 12,544 5.12%

Total interest-earning assets 699,983 12,889 3.71% 613,961 13,971 4.56%

Allowance for loan losses (6,332) (3,878)

Noninterest-earning assets 73,770 76,482

Total assets $ 767,421 $ 686,565

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts $ 127,931 $ 28 0.04% $ 99,557 $ 22 0.04%

Savings & money market 192,708 163 0.17% 123,820 220 0.36%

Time deposits 137,872 350 0.51% 150,067 1,238 1.65%

Total interest-bearing deposits 458,511 541 0.24% 373,444 1,480 0.79%

FHLB advances and other borrowings 16,560 93 1.13% 69,229 342 0.99%

Subordinated debentures 20,794 434 4.21% 16,125 365 4.57%

Total interest-bearing liabilities 495,865 1,068 0.43% 458,798 2,187 0.96%

Noninterest bearing deposits 192,081 158,513

Other liabilities 10,589 10,330

Shareholders' equity 68,886 58,924

Total liabilities and shareholders' equity $ 767,421 $ 686,565

Net interest income / interest rate spread $ 11,821 3.28% $ 11,784 3.60%

Net interest margin 3.41% 3.85%

Net interest income for the three months ended June 30, 2021 was $6.2 million, representing an increase of $0.3 million, or 4.2%, from the three months ended June 30, 2020. The increase in net interest income over the period was driven mainly by a decrease in the cost of interest-bearing liabilities, which decreased to 0.40% for the three months ended June 30, 2021 from 0.84% for the same period in 2020. Improvements in costs of interest-bearing liabilities were offset to some extent by continued downward pressure on asset yield. Yield on interest-earning assets decreased to 3.69% for the three months ended June 30, 2021 from 4.20% for the same period in 2020. The decrease was driven by both a change in balance sheet mix and an overall decrease in interest rates stemming from decreases in the federal funds target rate during 2020.

Net interest income was $11.8 million for both the six months ended June 30, 2021 and June 30, 2020. The minimal change in net interest income was driven by a decrease in yield on interest-earning assets offset by a decrease in costs of interest-bearing liabilities.

CONDENSEDCONSOLIDATED BALANCE SHEETS - Unaudited

As of

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Assets

Cash and cash equivalents:

Cash and due from banks $ 5,486 $ 5,547 $ 5,521 $ 5,133 $ 4,952

Interest-bearing deposits with banks 144,937 115,577 93,167 134,592 78,299

Total cash and cash equivalents 150,423 121,124 98,688 139,725 83,251

Time deposits in other banks 256 256 256 256 255

Investment securities:

Investment securities available for sale 56,881 54,413 32,759 35,567 28,237

Investment securities held to maturity - - - - 9,318

Other investments 837 837 1,076 3,839 4,264

Total investment securities 57,718 55,250 33,835 39,406 41,819

Mortgage loans held for sale 33,097 48,912 35,642 57,853 57,329

Loans receivable:

Loans 526,362 490,326 477,968 478,745 512,384

Less allowance for loan losses (6,323) (6,168) (6,173) (5,721) (4,715)

Loans receivable, net 520,039 484,158 471,795 473,024 507,669

Property and equipment, net 21,818 18,465 18,491 20,548 20,523

Mortgage servicing rights 13,603 13,353 12,021 11,000 9,698

Bank owned life insurance 18,289 18,195 18,102 18,001 17,898

Deferred income taxes 2,820 3,234 3,452 3,872 5,068

Other assets 14,178 14,788 17,886 17,970 19,137

Total assets 832,241 777,735 710,168 781,655 762,647

Liabilities

Deposits $ 711,505 $ 661,217 $ 594,000 $ 595,767 $ 582,361

Federal Home Loan Bank advances 10,000 10,000 10,000 75,000 85,000

Federal funds and repurchase agreements 8,946 6,955 5,523 12,591 2,464

Subordinated debentures 10,496 10,487 10,459 10,427 10,358

Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310

Other liabilities 11,393 10,548 11,147 10,178 9,814

Total liabilities 762,650 709,517 641,439 714,273 700,307

Shareholders' equity

Preferred stock - Series D non-cumulative, no par 1 1 1 1 1 value

Common Stock - $.01 par value; 20,000,000 shares 88 88 82 81 81 authorized

Non-Voting Common Stock, $.01 par value; - - 4 4 4 430,000 shares authorized

Treasury stock, at cost (3,858) (3,744) (1,680) (1,488) (1,478)

Nonvested restricted stock (2,928) (2,868) (1,487) (1,577) (1,748)

Additional paid-in capital 53,776 53,617 51,972 51,824 51,822

Retained earnings 21,765 20,417 18,709 17,320 12,852

Accumulated other comprehensive income 747 707 1,128 1,217 806

Total shareholders' equity 69,591 68,218 68,729 67,382 62,340

Total liabilities and shareholders' equity $ 832,241 $ 777,735 $ 710,168 $ 781,655 $ 762,647

COMMON STOCK SUMMARY - Unaudited

As of

June 30 Mar 31 Dec 31 Sept 30 Jun 30

(shares in thousands) 2021 2021 2020 2020 2020

Voting common shares outstanding 8,788 8,784 8,154 8,129 8,133

Non-voting common shares outstanding - - 410 410 410

Treasury shares outstanding (489) (481) (234) (202) (200)

Total common shares outstanding 8,299 8,303 8,330 8,337 8,343

Tangible book value per common share^(5) $ 8.27 $ 8.09 $ 8.12 $ 7.95 $ 7.34

Stock price:

High $ 10.05 $ 10.00 $ 7.80 $ 6.05 $ 5.50

Low $ 9.65 $ 7.46 $ 5.55 $ 4.85 $ 4.93

Period end $ 9.90 $ 9.90 $ 7.75 $ 6.05 $ 5.07

Footnotes to table located at the end of this release.

ASSET QUALITY MEASURES - Unaudited

As of

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Nonperforming Assets

Commercial

Owner occupied RE $ 535 $ 385 $ 394 $ 404 $ 413

Non-owner occupied RE - - - - -

Construction - - - - -

Commercial business - - - - 135

Consumer

Real estate 383 344 461 346 345

Home equity - - - - -

Construction - - - - -

Other 129 164 242 299 206

Nonaccruing troubled debt restructurings 235 252 270 291 318

Total nonaccrual loans $ 1,282 $ 1,145 $ 1,367 $ 1,340 $ 1,417

Other real estate owned 150 150 164 164 209

Total nonperforming assets $ 1,432 $ 1,295 $ 1,531 $ 1,504 $ 1,626

Nonperforming assets as a percentage of:

Total assets 0.17% 0.17% 0.21% 0.19% 0.21%

Total loans receivable 0.27% 0.26% 0.32% 0.31% 0.32%

Accruing troubled debt restructurings $ 1,478 $ 1,544 $ 1,584 $ 2,508 $ 2,620

Three Months Ended

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Allowance for Loan Losses

Balance, beginning of period $ 6,168 $ 6,173 $ 5,721 $ 4,715 $ 3,877

Loans charged-off 59 55 43 76 452

Recoveries of loans previously charged-off 106 50 145 82 112

Net charge-offs (recoveries) (47) 5 (102) (6) 340

Provision for loan losses 108 - 350 1,000 1,178

Balance, end of period $ 6,323 $ 6,168 $ 6,173 $ 5,721 $ 4,715

Allowance for loan losses to gross loans receivable 1.20% 1.26% 1.29% 1.20% 0.92%

Allowance for loan losses to nonaccrual loans 493.21% 538.69% 451.57% 426.94% 332.75%

Our asset quality remained strong through June 30, 2021, with nonperforming assets increasing slightly to $1.4 million at June 30, 2021 from $1.3 million at March 31, 2021. The ratio of nonperforming assets to total assets remained at 0.17% at June 30, 2021. Other real estate owned and repossessed assets remain nominal. The allowance for loan losses as a percentage of total loans receivable decreased slightly to 1.20% at June 30, 2021, compared to 1.26% at March 31, 2021. The Company had net recoveries of $47 thousand for the three months ended June 30, 2021 compared to net charge-offs of $340 thousand for the same period in 2020.

LOAN COMPOSITION - Unaudited

As of

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Commercial real estate $ 290,198 $ 253,300 $ 259,486 $ 259,100 $ 260,020

Consumer real estate 97,969 91,504 92,602 92,651 96,037

Commercial and industrial 63,545 60,432 58,445 59,704 58,103

PPP - 16,784 - - 29,133

Consumer and other 74,650 68,306 67,435 67,290 69,091

Total loans, net of deferred fees 526,362 490,326 477,968 478,745 512,384

Less allowance for loan losses 6,323 6,168 6,173 5,721 4,715

Total loans, net $ 520,039 $ 484,158 $ 471,795 $ 473,024 $ 507,669

DEPOSIT COMPOSITION - Unaudited

As of

June 30 Mar 31 Dec 31 Sept 30 June 30

(dollars in thousands) 2021 2021 2020 2020 2020

Noninterest-bearing $ 215,814 $ 197,831 $ 167,274 $ 173,628 $ 185,208

Interest-bearing:

NOW accounts 132,269 131,304 120,891 108,152 103,732

Money market accounts 169,707 137,913 119,716 113,203 101,083

Savings 57,880 52,085 46,688 41,549 34,392

Time, less than $250,000 106,219 109,295 105,327 122,139 120,782

Time, $250,000 and over 29,616 32,789 34,104 37,096 37,164

Total deposits $ 711,505 $ 661,217 $ 594,000 $ 595,767 $ 582,361

Footnotes to tables:

(1) Total revenue is the sum of net interest income and noninterest income.

(2) Annualized for the respective period.

(3) Noninterest expense divided by the sum of net interest income and noninterest income.

(4) Includes noninterest-bearing and interest-bearing NOW accounts.

The tangible book value per share is calculated as total shareholders' equity(5) less intangible assets, divided by period-end outstanding common shares.

ABOUT FIRST RELIANCE

Founded in 1999, First Reliance Bancshares, Inc. (OTC: FSRL.OB), is based in Florence, South Carolina and has assets of approximately $832 million. The Company employs more than 185 professionals and has locations throughout South Carolina and central North Carolina. First Reliance has redefined community banking with a commitment to making customers lives better, its founding principle. Customers of the company have given it a 93% customer satisfaction rating, well above the bank industry average of 81%. First Reliance is also one of three companies throughout South Carolina to receive the Best Places To Work in South Carolina award all 15 years since the program began. We believe that this recognition confirms that our associates are engaged and committed to our brand and the communities we serve. In addition to offering a full range of personalized community banking products and services for individuals, small businesses, and corporations, First Reliance offers two unique community-customers programs, which include: Hometown Heroes, a package of benefits for those serving our communities and Check N Save, an outreach program for the unbanked or under-banked. We also offer a full suite of digital banking services, a Customer Service Guaranty, a Mortgage Service Guaranty, and are open on most traditional holidays.

FORWARD-LOOKING STATEMENTS

Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include, but are not limited to, statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in the U.S. legal and regulatory framework including, but not limited to, the Dodd-Frank Act and regulations adopted thereunder; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the Company, including the value of its MSR asset; (7) the business related to acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; (8) the expected cost savings and any revenue synergies from acquisitions may not be fully realized within expected timeframes; and (9) disruption from acquisitions may make it more difficult to maintain relationships with clients, associates or suppliers. Moreover, a trade war or other governmental action related to tariffs or international trade agreements or policies, as well as Covid-19 or other potential epidemics or pandemics, have the potential to negatively impact ours and/or our customers' costs, demand for our customers' products, and/or the U.S. economy or certain sectors thereof and, thus, adversely affect our business, financial condition, and results of operations. All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact:Robert HaileSEVP & Chief Financial Officer(843) 656-5000rhaile@firstreliance.com

View original content to download multimedia: https://www.prnewswire.com/news-releases/first-reliance-bancshares-reports-second-quarter-2021-results-301337902.html

SOURCE First Reliance Bancshares