FLORENCE, S.C., April 25, 2024 /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 first quarter of 2024. First Quarter 2024 Highlights Net income decreased 9.7% for the first quarter of 2024 to $1.2 million, or $0.15 per diluted share, compared to $1.4 million, or $0.17 per diluted share, for the first quarter of 2023. Net interest income for the quarter was $7.2 million, which represents a decrease of $64,800, or 0.9%, on a linked quarter basis and a decrease of $66,600, or 0.9% compared to the same period in 2023. Net interest margin decreased during the quarter to 3.11% at March 31, 2024, compared to 3.16% for the fourth quarter of 2023, and decreased 23 basis points compared to the same period in 2023. Total loans increased $19.6 million, or 11.1% annualized, to $725.2 million at March 31, 2024, from $705.7 million at December 31, 2023. Total deposits increased $22.7 million, or 10.6% annualized, to $881.3 million at March 31, 2024, from $858.6 million at December 31, 2023. Asset quality remained strong with nonperforming assets as a percentage of total assets of 0.03% at March 31, 2024, down from 0.04% at December 31, 2023. The Company had net charge-offs of $113.0 thousand, or annualized 0.06% of average loans, during the first quarter of 2024, compared to net recoveries of $1.3 thousand, or annualized 0.00% of average loans, for the fourth quarter of 2023. Cost of funds for the first quarter of 2024 increased to 2.25% from 2.03% on a linked quarter basis and from 1.24% for the same period in 2023. Book value per share increased $0.72 from $8.14 per share at March 31, 2023, to $8.86 per share at March 31, 2024. Rick Saunders, Chief Executive Officer, stated: "The first quarter of 2024 saw our total assets exceed $1.0 billion, which we expect to continue to grow going forward. Loan growth exceeded 11% annualized while deposit growth was 10.6% annualized. The Company's capital ratios remain strong as our total capital ratio equaled 13.46% at the bank level. In addition, tangible book value per share increased by $0.73 per share, or 9.08%, to $8.77 over the past twelve months. Credit quality remains strong with low net charge offs and nonperforming assets. Our team continues to put clients first while establishing strong long-term relationships in the communities we serve." Financial Summary Three Months Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ($ in thousands, except per share data) 2024 2023 2023 2023 2023 Earnings: Net income available to common shareholders $     1,238 $          776 $     1,444 $     1,013 $     1,371 Earnings per common share, diluted 0.15 0.10 0.18 0.12 0.17 Total revenue(1) 9,690 8,285 9,219 8,959 9,430 Net interest margin 3.11 % 3.16 % 3.11 % 3.16 % 3.34 % Return on average assets(2) 0.49 % 0.32 % 0.58 % 0.41 % 0.57 % Return on average equity(2) 7.01 % 4.70 % 8.68 % 6.13 % 8.53 % Efficiency ratio(3) 81.04 % 89.83 % 80.35 % 82.50 % 79.20 %   As of Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ($ in thousands) 2024 2023 2023 2023 2023 Balance Sheet: Total assets $  1,027,616 $       974,157 $       991,721 $       992,596 $  1,000,535 Total loans receivable 725,234 705,672 706,596 694,130 669,969 Total deposits 881,309 858,597 861,229 830,085 836,902 Total transaction deposits(4) to total deposits 39.86 % 41.31 % 43.55 % 44.00 % 46.46 % Loans to deposits 82.29 % 82.19 % 82.05 % 83.62 % 80.05 % Bank Capital Ratios: Total risk-based capital ratio 13.46 % 13.86 % 13.54 % 13.57 % 13.45 % Tier 1 risk-based capital ratio 12.37 % 12.75 % 12.43 % 12.43 % 12.41 % Tier 1 leverage ratio 10.16 % 10.32 % 10.11 % 9.95 % 10.14 % Common equity tier 1 capital ratio 12.37 % 12.75 % 12.43 % 12.43 % 12.41 % Asset Quality Ratios: Nonperforming assets as a percentage of    total assets 0.03 % 0.03 % 0.05 % 0.05 % 0.05 % Allowance for credit losses as a percentage of    total loans receivable 1.17 % 1.19 % 1.19 % 1.19 % 1.20 % Net charge-offs as a percentage of average total loans receivable 0.06 % 0.00 % 0.01 % 0.07 % 0.06 % Footnotes to table located at the end of this release.   CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited Three Months Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ($ in thousands, except per share data) 2024 2023 2023 2023 2023 Interest income Loans $     10,085 $        9,678 $        9,394 $        8,837 $        8,260 Investment securities 1,972 1,832 1,596 1,371 1,343 Other interest income 291 396 536 782 362 Total interest income 12,348 11,906 11,526 10,990 9,965 Interest expense Deposits 4,332 4,076 3,671 2,876 1,922 Other interest expense 808 558 651 893 769 Total interest expense 5,140 4,634 4,322 3,769 2,691 Net interest income 7,208 7,272 7,204 7,221 7,274 Provision for credit losses 207 (118) (42) 280 248 Net interest income after provision for loan    losses 7,001 7,390 7,246 6,941 7,026 Noninterest income Mortgage banking income 1,375 694 1,147 1,063 916 Service fees on deposit accounts 336 336 371 341 326 Debit card and other service charges,    commissions, and fees 519 544 537 563 517 Income from bank owned life insurance 102 99 95 91 244 Loss on sale of securities, net - (802) (268) (455) - Gain on disposal of fixed assets 20 11 - - 19 Other income 130 132 132 134 134 Total noninterest income 2,482 1,014 2,014 1,737 2,156 Noninterest expense Compensation and benefits 4,878 4,558 4,603 4,461 4,652 Occupancy and equipment 841 798 882 856 892 Data processing, technology, and communications 1,039 985 923 942 771 Professional fees 110 56 58 111 196 Marketing 160 104 151 206 226 Other 826 942 790 815 732 Total noninterest expense 7,854 7,443 7,407 7,391 7,469 Income before provision for income taxes 1,629 961 1,853 1,287 1,713 Income tax expense 391 185 409 274 342 Net income available to common shareholders $        1,238 $             776 $        1,444 $        1,013 $        1,371 Addback securities losses, net of tax - 648 355 211 - Adjusted net income (nonGAAP) 1,238 1,424 1,799 1,224 1,371 Weighted average common shares - basic 7,837 7,826 7,834 7,825 7,807 Weighted average common shares - diluted 8,217 8,164 8,149