EX-99.1 2 v384393_ex99-1.htm EXHIBIT 99.1

 

FIRST RELIANCE BANCSHARES, INC.

Condensed Consolidated Balance Sheets

 

   June 30,   December 31, 
   2014   2013 
   (Unaudited)   (Audited) 
Assets          
Cash and cash equivalents:          
Cash and due from banks  $3,020,092   $3,548,974 
Interest-bearing deposits with other banks   26,260,939    14,698,851 
Total cash and cash equivalents   29,281,031    18,247,825 
           
Time deposits in other banks   101,309    101,207 
           
Securities available-for-sale   12,026,196    12,144,843 
Securities held-to-maturity (Estimated fair value of $34,928,742 and $36,951,934  at June 30, 2014 and December 31, 2013, respectively)   34,267,588    36,951,934 
Nonmarketable equity securities   1,142,400    1,594,900 
Total investment securities   47,436,184    50,691,677 
           
Mortgage loans held for sale   2,640,943    2,248,252 
           
Loans receivable   240,802,650    238,502,131 
Less allowance for loan losses   (2,855,973)   (2,894,153)
Loans, net   237,946,677    235,607,978 
           
Premises, furniture and equipment, net   24,109,388    24,333,616 
Accrued interest receivable   1,138,284    1,129,881 
Other real estate owned   7,269,512    8,932,634 
Cash surrender value life insurance   13,113,466    12,945,693 
Other assets   988,266    1,169,368 
Total assets  $364,025,060   $355,408,131 
           
Liabilities and Shareholders’ Equity          
Liabilities          
Deposits          
Noninterest-bearing transaction accounts  $68,652,645   $65,576,524 
Interest-bearing transaction accounts   62,345,983    46,046,043 
Savings   85,091,762    86,247,410 
Time deposits $100,000 and over   37,935,300    39,934,745 
Other time deposits   40,840,288    44,610,301 
Total deposits   294,865,978    282,415,023 
Securities sold under agreement to repurchase   5,583,306    4,876,118 
Advances from Federal Home Loan Bank   17,000,000    23,000,000 
Junior subordinated debentures   10,310,000    10,310,000 
Accrued interest payable   704,004    587,649 
Other liabilities   2,807,475    2,126,597 
Total liabilities   331,270,763    323,315,387 
           
Shareholders’ Equity          
Preferred stock          
Series A cumulative perpetual preferred stock - 15,349 shares issued  and outstanding at June 30, 2014 and December 31, 2013   15,179,709    15,145,597 
Series B cumulative perpetual preferred stock - 767 shares issued  and outstanding at June 30, 2014 and December 31, 2013   767,000    769,894 
Common stock, $0.01 par value; 20,000,000 shares authorized, 4,569,895 and 4,568,695 shares issued and outstanding at , June 30, 2014 and December 31, 2013, respectively   45,699    45,687 
Capital surplus   30,611,309    30,609,281 
Treasury stock, at cost, 35,176 and 29,846 shares at June 30, 2014 and December 31, 2013, respectively   (205,512)   (201,686)
Nonvested restricted stock   (18,361)   (32,138)
Retained deficit   (13,760,436)   (14,447,907)
Accumulated other comprehensive income   134,889    204,016 
Total shareholders’ equity   32,754,297    32,092,744 
Total liabilities and shareholders’ equity  $364,025,060   $355,408,131 

 

 
 

 

FIRST RELIANCE BANCSHARES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2014   2013   2014   2013 
Interest income:                    
Loans, including fees  $3,322,961   $3,372,998   $6,596,640   $6,844,202 
Investment securities:                    
Taxable   280,322    314,256    568,303    662,240 
Nontaxable   28,529    -    57,100    - 
Other interest income   17,854    26,592    29,756    52,935 
Total   3,649,666    3,713,846    7,251,799    7,559,377 
Interest expense:                    
Time deposits   165,848    521,825    414,967    1,126,488 
Other deposits   32,494    50,277    65,827    123,988 
Other interest expense   97,758    118,481    179,238    240,018 
Total   296,100    690,583    660,032    1,490,494 
                     
Net interest income   3,353,566    3,023,263    6,591,767    6,068,883 
                     
Provision for loan losses   45,930    -    45,930    - 
                     
Net interest income after provision for loan losses   3,307,636    3,023,263    6,545,837    6,068,883 
                     
Noninterest income:                    
Service charges on deposit accounts   399,654    403,885    783,029    817,200 
Gain on sales of mortgage loans   302,332    280,472    503,572    574,041 
Income from bank owned life insurance   84,247    86,727    167,772    171,767 
Other charges, commissions and fees   276,282    225,739    534,896    467,664 
Gain on sale of securities   -    33,917    5,321    33,917 
Other non-interest income   73,081    85,777    146,790    169,426 
Total   1,135,596    1,116,517    2,141,380    2,234,015 
                     
Noninterest expenses:                    
Salaries and employee benefits   1,841,151    1,976,955    3,653,886    3,905,664 
Occupancy expense   385,751    375,060    752,781    733,147 
Furniture and equipment expense   392,122    177,327    806,571    472,842 
Other operating expenses   1,451,875    1,805,514    2,755,290    3,372,900 
Total   4,070,899    4,334,856    7,968,528    8,484,553 
                     
Income (loss) before income taxes   372,333    (195,076)   718,689    (181,655)
                     
Income tax   -    -    -    - 
                     
Net income (loss)   372,333    (195,076)   718,689    (181,655)
                     
Preferred stock dividends   285,865    249,247    494,985    498,495 
Deemed dividends on preferred stock resulting from  net accretion of discount and amortization of premium   -    44,388    31,218    88,288 
Net loss available to common shareholders  $86,468   $(488,711)  $192,486   $(768,438)
                    
Average common shares outstanding, basic   4,569,895    4,095,271    4,569,510    4,095,069 
Average common shares outstanding, diluted   4,630,783    4,095,271    4,640,145    4,095,069 
                     
Income (loss) per common share:                    
Basic  $0.02   $(0.12)  $0.04   $(0.19)
Diluted   0.02    (0.12)   0.04    (0.19)