FLORENCE, S.C., Aug. 10, 2016 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTC: FSRL), the holding company (the "Company") for First Reliance Bank (the "Bank"), announces that it redeemed the final 4,349 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") and 767 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock") that were originally issued to the United States Department of the Treasury under the Troubled Asset Relief Program Capital Purchase Program ("TARP"). On May 31, 2016, the Company redeemed 4,000 shares of its Series A Preferred Stock and announced that it has sent required notice letters to holders informing them of its intent to redeem the remaining 11,349 shares of Series A Preferred Stock and 767 shares of Series B Preferred Stock, subject to receipt of requisite regulatory approval. On July 8, 2016, the Company redeemed another 7,000 shares of Series A Preferred Stock. The redemption announced today represents the last phase of the previously announced redemption plan. The redemption price was $1,000 per share, plus accrued and unpaid dividends. The total aggregate redemption price of the shares of Series A Preferred Stock and Series B Preferred Stock redeemed today was $5,116,000, plus accrued but unpaid dividends. Today's redemption was funded primarily with the proceeds of the issuance of $5.0 million of subordinated notes in privately negotiated transactions.
"We are pleased to be in a position to replace the securities originally issued to the U.S. Treasury under the TARP Capital Purchase Program with lower cost financing alternatives," said Rick Saunders, President and CEO.
Following completion of these redemptions, the capital ratios of First Reliance Bank far exceed regulatory capital standards to be categorized as well-capitalized and the bank will have sufficient capital to support future balance sheet growth. Redemption of the TARP securities reduced the Company's after-tax interest expense and is expected to positively impact earnings per share on an annual basis by $0.21 per share, or approximately $977,000 additional net income to common shareholders.
"Strategically, we continue to be focused on growing our market presence in the Coastal and Midlands regions of South Carolina, diversifying our revenue sources growing our loan portfolio with 1-4 family mortgage and consumer loans, funding this growth with low cost core deposits, increasing non-interest income and improving our efficiency," said Rick Saunders, President and CEO. "We also continue to focus on delivering profits that are consistent and sustainable for our shareholders."
ABOUT FIRST RELIANCE BANCSHARES, INC.
First Reliance Bancshares, Inc. is the holding company for First Reliance Bank. The Bank was founded in 1999, employs approximately 120 highly-talented associates and serves the Midlands, Low Country, Coastal and Florence markets in South Carolina. First Reliance Bank offers several unique customer programs which include a Hometown Heroes package of benefits to serve those who are serving our communities, Check 'N Save, a community outreach program for the unbanked or under-banked, a Moms First program, and an iMatter program targeted to young people. The Bank also offers a Customer Service Guaranty, a Mortgage Service Guaranty, FREE Coin Machines for customers to use, Mobile Banking, and is open on most traditional bank holidays. Its commitment to making customers' lives better and the idea that "There's More to Banking Than Money" has earned the Bank a customer satisfaction rating of 95%.
The common stock of First Reliance Bancshares, Inc. is traded under the symbol FSRL.OB. Additional information about the Company is available on the Company's web site at www.firstreliance.com.
This press release contains forward-looking statements about branch openings within the meaning of the Securities Litigation Reform Act of 1995. Forward-looking statements give our expectations or forecasts of future events.
Any or all of our forward-looking statements here or in other publications may turn out to be incorrect. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results. Consequently, no forward- looking statements can be guaranteed. Our actual results may vary materially, and there are no assurances about the performance of our common stock.
We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future results or otherwise.
Jeffrey A. Paolucci, EVP & CFO
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SOURCE First Reliance Bancshares, Inc.