First Reliance Bancshares Reports Fourth Quarter 2025 Results

Core Insights - First Reliance Bancshares, Inc. reported significant financial improvements for the fourth quarter and the full year of 2025, with a 39% increase in operating earnings per share to $1.14 compared to $0.82 in 2024 [3][5][9]. Financial Performance - Net income for Q4 2025 was $2.9 million, a 218.6% increase from $0.9 million in Q4 2024, translating to $0.36 per diluted share compared to $0.11 [5][9]. - For the full year 2025, net income reached $10.9 million, or $1.31 per diluted share, up from $5.9 million, or $0.71 per diluted share in 2024 [5][9]. - Operating earnings (Non-GAAP) for Q4 2025 were $2.9 million, a 68% increase from $1.7 million in Q4 2024, resulting in $0.35 per diluted share compared to $0.21 [5][9]. - Total revenue for the year was $49.7 million, up from $39.6 million in 2024 [6]. Efficiency and Margins - The net interest margin improved to 3.71% in Q4 2025, up from 3.66% in Q3 2025 and 3.38% in Q4 2024 [5][9]. - The adjusted efficiency ratio (Non-GAAP) improved to 71.59% in Q4 2025 from 78.29% in Q4 2024 [5][9]. Loan and Deposit Trends - Total loans held for investment slightly decreased by $62 thousand to $779.9 million at the end of Q4 2025, but year-to-date loan growth was $26.2 million, or 3.5% [5][9]. - Total deposits decreased by $11.2 million to $948.1 million at the end of Q4 2025, a 4.6% annualized decline [5][9]. Asset Quality - Nonperforming assets increased to $2.5 million, or 0.23% of total assets, compared to $369 thousand, or 0.03% of total assets in Q3 2025, attributed to specific loans that are fully collateralized [5][9]. Noninterest Income and Expenses - Noninterest income for Q4 2025 was $2.7 million, an increase of $1.3 million from $1.4 million in Q4 2024, driven by mortgage banking income and gains on asset sales [10][11]. - Noninterest expense for Q4 2025 was $8.8 million, an increase of $303 thousand from $8.5 million in Q4 2024, primarily due to higher compensation and benefits [12][13].