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].

Core Insights - First Reliance Bancshares, Inc. reported a significant increase in net income for the second quarter of 2025, reaching $3.7 million, or $0.44 per diluted share, an increase of 88.1% compared to the same quarter in 2024 [5][8] - The company experienced a tangible book value per share increase of $1.58, or 17.3%, from $9.13 to $10.71 year-over-year [3][5] - Total deposits decreased by $28.3 million, or 11.6% annualized, primarily due to the sale of two branches to Carter Bank [5][23] Financial Performance - Net interest income for Q2 2025 was $9.1 million, an increase of $1.4 million, or 18.8%, compared to Q2 2024 [5][18] - The net interest margin improved to 3.53% in Q2 2025 from 3.20% in Q2 2024, reflecting better yields on loans and a decrease in the cost of funds [5][18] - Operating earnings (Non-GAAP) for Q2 2025 were $2.2 million, or $0.27 per diluted share, compared to $1.9 million, or $0.24 per diluted share in Q2 2024 [5][8] Balance Sheet Highlights - Total assets as of June 30, 2025, were $1.102 billion, up from $1.067 billion a year earlier [20] - Total loans receivable stood at $784.7 million, showing a slight increase from $784.5 million at the end of Q1 2025 [20] - The allowance for credit losses as a percentage of total loans receivable was 1.09% as of June 30, 2025 [6] Asset Quality - Nonperforming assets decreased to $205,000, or 0.02% of total assets, down from $933,000, or 0.09% of total assets at the end of Q1 2025 [5][6] - The company reported annualized net charge-offs of 0.03% of average total loan receivables for Q2 2025 [6] Noninterest Income and Expenses - Noninterest income for Q2 2025 was $4.8 million, an increase of $2.2 million from $2.6 million in Q2 2024, driven by mortgage banking income and a gain from the sale of branches [10][11] - Noninterest expenses increased to $9.0 million in Q2 2025, up from $7.7 million in Q2 2024, primarily due to higher compensation and benefits [12][13] Strategic Initiatives - The company approved a stock repurchase program of up to $3.0 million, set to expire on June 30, 2026, considering various factors including stock price and expected growth [5]

Financial Performance - First Bancorp's net income for Q1 2025 was $364 million, a $328 million increase compared to $36 million in Q4 2024[22] - Adjusted net income increased to $349 million in Q1 2025, up from $317 million in Q4 2024[22] - The return on average assets significantly improved to 121% in Q1 2025, compared to 012% in Q4 2024[22] - Net interest margin (tax equivalent) increased by 19 basis points to 327% in Q1 2025[22] Balance Sheet and Capital - Total deposits reached $107 billion, representing a $214 million increase for the quarter, or an annualized growth rate of 8%[48] - The company maintains strong capital levels, with growth in every capital measure from Q4 2024 to Q1 2025[44, 46] - As of March 31, 2025, brokered deposits remained minimal at $10 million[48] Asset Quality - The allowance for credit losses to total loans was 149% as of March 31, 2025[57] - The company benefits from a granular deposit franchise, with the top twenty depositors representing approximately 7% of total deposits[52] - Uninsured and uncollateralized deposits represent approximately 33% of total deposits[52] Strategic Positioning - First Bancorp is the 4th largest bank headquartered in North Carolina and the largest community bank[9] - The company operates 113 branches in North Carolina and South Carolina[9] - The company is focused on high-growth markets in the Carolinas, which are experiencing significant population influx and economic growth[69, 81]