First Reliance Bancshares Sees Growth in 2024 Financials
First Reliance Bancshares Reports Financial Growth
First Reliance Bancshares, Inc. (OTC:FSRL) has showcased a commendable performance in its financial results for the fourth quarter of 2024. The holding company for First Reliance Bank clearly emphasizes its growth trajectory driven by a consistent increase in operational earnings and net income.
Fourth Quarter Highlights
The company reported a net income of $0.9 million for the fourth quarter, reflecting an 18.3% increase as compared to the previous year. Diluted earnings per share stood at $0.11, up from $0.10 in the same period last year. Operating earnings for the fourth quarter reached $1.7 million, marking a rise to $0.21 per diluted share, a substantial increase from $0.17 a year earlier.
Annual Growth Overview
In the calendar year of 2024, First Reliance demonstrated considerable financial growth with a net income of $5.9 million, a rise of $1.3 million from 2023. This equated to $0.71 per diluted share, showcasing a 26.8% increase in earnings per share compared to 2023. The operating net income also rose to $6.8 million, resulting in a notable operating earnings growth of 17.2%.
Improved Book Value
The book value per share experienced a commendable increase of $0.91 to reach $9.68 at the end of December 2024, while the tangible book value per share rose to $9.59, portraying a healthy financial standing. This upward trajectory is indicative of the company’s solid underlying performance and effective management strategies.
Increased Net Interest Income
First Reliance's net interest income for the quarter was documented as $8.4 million, showcasing a 15.6% increase from the previous year. The company’s net interest margin improved to 3.38%, up from 3.16% in the fourth quarter of the previous year, demonstrating effective asset and liability management.
Strong Loan Portfolio
Total loans held for investment surged to $753.7 million by the end of December 2024, marking a significant annualized growth of 7.9%. This growing loan portfolio underscores the company’s commitment to expanding its lending services while maintaining prudent risk management practices.
Asset Quality Remains Robust
First Reliance reported nonperforming assets totaling $1.2 million, or 0.11% of its total assets, showcasing strong asset quality. The company continues to manage credit risk effectively, as evidenced by low net charge-offs and solid credit metrics.
Future Outlook
Looking into the future, CEO Rick Saunders emphasized the company’s intention to prioritize expense management while enhancing revenue generation strategies in 2025. With a strong loan pipeline and a commitment to exceptional customer service, First Reliance is well-positioned to leverage opportunities for continued growth.
Frequently Asked Questions
What is the net income for First Reliance Bancshares in Q4 2024?
First Reliance Bancshares reported a net income of $0.9 million for Q4 2024.
How much was the diluted earnings per share in 2024?
The diluted earnings per share for 2024 were $0.71 compared to $0.56 in 2023.
What is the net interest margin reported by First Reliance?
The net interest margin for the fourth quarter of 2024 was 3.38%.
How much did the book value per share increase?
The book value per share increased by $0.91 to $9.68 as of December 31, 2024.
What strategy is First Reliance focusing on for 2025?
First Reliance is focusing on managing expenses while seeking to increase revenues through enhanced banking services.
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