First Reliance Bancshares Reports Third Quarter 2025 Results

Core Insights - First Reliance Bancshares, Inc. reported a significant increase in net income for Q3 2025, rising 48.8% to $2.7 million, or $0.33 per diluted share, compared to $1.8 million, or $0.22 per diluted share, in Q3 2024 [5][8] - The company experienced a 22% improvement in operating earnings per share from Q2 2025, with a net interest margin increase of 13 basis points [3][5] - Total deposits grew by $9.0 million, or 3.8% annualized, while total loans decreased by $4.8 million, or 2.4% annualized, primarily due to the sale of North Carolina branches [3][5] Financial Performance - Net interest income for Q3 2025 was $9.5 million, an increase of $1.3 million, or 16.7%, from the same quarter last year [5][9] - The efficiency ratio improved to 69.61%, down from 76.90% a year ago, indicating better operational efficiency [5][10] - Noninterest income increased to $2.8 million in Q3 2025, up from $1.8 million in Q3 2024, driven by higher mortgage banking income [9][10] Balance Sheet and Asset Quality - Total assets as of September 30, 2025, were approximately $1.1 billion, with total loans receivable at $780.0 million and total deposits at $959.3 million [4][5] - Nonperforming assets increased slightly to $369 thousand, or 0.03% of total assets, reflecting strong credit quality despite the increase [5][6] - The allowance for credit losses as a percentage of total loans receivable was 1.12%, indicating a stable risk profile [6] Capital Management - The company has a stock repurchase program authorized for up to $3.0 million, with 122,316 shares repurchased at an average cost of $9.71 during Q3 2025 [5][12] - Tangible book value per share increased by $1.44, or 14.6%, year-over-year, reaching $11.33 per share [5][8] Operational Highlights - The company’s return on average tangible equity was 10.83% for 2025, excluding nonrecurring items, showcasing effective capital utilization [3][5] - Compensation and benefits expenses increased significantly, primarily due to mortgage commissions and stock compensation [10][11]