$FSRL First Reliance Bancshares Reports Third Quarter 2021 Results
Press Release | 10/21/2021
First Reliance Bancshares Reports Third Quarter 2021 Results
PR Newswire
FLORENCE, S.C., Oct. 21, 2021
FLORENCE, S.C., Oct. 21, 2021 /PRNewswire/ -- First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, "First Reliance" or the "Company"), today announced its financial results for the third quarter of 2021.
First Reliance Bancshares
Third Quarter 2021 Highlights
Net income for the third quarter of 2021 was $1.3 million, or $0.16 per diluted share, compared to $4.5 million, or $0.56 per diluted share, for the third quarter of 2020.
Total assets increased $78.8 million, or 37.9% annualized, to $911.1 million at September 30, 2021 from $832.2 million at June 30, 2021.
Total loans increased $38.4 million, or 29.2% annualized, to $564.7 million at September 30, 2021 from $526.4 million at June 30, 2021.
Total deposits increased $76.0 million, or 42.7% annualized, to $787.5 million at September 30, 2021 from $711.5 million at June 30, 2021. This growth was primarily driven by noninterest-bearing deposits and money market deposits, which increased $30.7 million and $46.5 million, respectively.
Net interest income for the quarter was $6.3 million, which represents an increase of $44 thousand, or 0.7%, on a linked quarter basis and a decrease of $0.5 million, or 7.5%, compared to the same period in 2020.
Included within net interest income for the three months ended June 30, 2021 and the three months ended September 30, 2020 was $0.3 million and $0.9 million, respectively, of PPP interest and accelerated fee income. The Company sold the PPP portfolios in full during those periods.
Asset quality remained strong, with nonperforming assets as a percentage of total assets decreasing to 0.15% at September 30, 2021 from 0.17% at June 30, 2021.
The Company had net recoveries of $511 thousand, or annualized (0.37%) of average loans during the quarter compared to net recoveries of $6 thousand, or annualized (0.00%) of average loans, for the same period in 2020.
Cost of funds for the third quarter of 2021 decreased to 0.24% from 0.29% on a linked quarter basis and from 0.52% for the same period in 2020.
On August 5, 2021, the Company redeemed all $5.0 million of its 7.00% fixed-to-floating rate subordinated notes. On September 22, 2021, the Company issued $10.0 million of 3.375% fixed-to-floating rate subordinated notes with a 10-year maturity and a call option after 5 years.
Rick Saunders, Chief Executive Officer, remarked on the quarter: "Our third quarter results are representative of our continued focus on organic growth and improving operating scale. The operating environment for the banking industry remains challenging with normalizing mortgage revenues and continued low interest rates. However, despite these challenges, we are continuing to execute the early phase of our growth strategy. We had another quarter of extraordinary deposit growth and continued to grow our loan portfolio within our conservative underwriting framework. Annualized deposit growth of 42.7% and annualized loan growth of 29.2% during the quarter is reflective of our team's ability to move their relationships to First Reliance. I'm especially proud that we continue to maintain our deposit mix, with over 48% of total deposits being comprised of checking balances."
Mr. Saunders continued, "As our loan growth continues, we expect our balance sheet mix to normalize over time, especially as it relates to cash. While our large cash position continues to create downward pressure on net interest margin, revenue, and efficiency, the short-term duration of this asset has protected book value and provides future earnings potential. As the rate environment becomes more favorable, the Company will have more opportunities to deploy this cash strategically."
Mr. Saunders concluded, "I would like to thank all of our associates for their continued hard work and their commitment to our customers, our communities, and our shareholders."
Financial Summary
Three Months Ended
Nine Months Ended
Sept 30
June 30
Mar 31
Dec 31
Sept 30
Sept 30
Sept 30
($ in thousands, except per share data)
2021
2021
2021
2020
2020
2021
2020
Earnings:
Net income available to common shareholders
$ 1,288
$ 1,348
$ 1,708
$ 1,389
$ 4,468
$ 4,344
$ 9,227
Earnings per common share, diluted
0.16
0.17
0.21
0.17
0.56
0.53
1.15
Total revenue(1)
9,570
10,169
9,917
10,858
14,820
29,655
35,603
Net interest margin
3.12%
3.40%
3.36%
3.27%
3.83%
3.30%
3.84%
Return on average assets(2)
0.60%
0.67%
0.93%
0.72%
2.31%
0.72%
1.72%
Return on average equity(2)
7.29%
7.83%
9.91%
8.08%
27.73%
8.34%
20.24%
Efficiency ratio(3)
83.83%
81.82%
77.35%
80.05%
54.28%
80.98%
60.11%
Footnotes to table located at the end of this release.
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Balance Sheet:
Total assets
$ 911,057
$ 832,241
$ 777,735
$ 710,168
$ 781,655
Total loans receivable
564,738
526,362
490,326
477,968
478,745
Total deposits
787,501
711,505
661,217
594,000
595,767
Total transaction deposits(4)to total deposits
48.25%
48.92%
49.78%
48.51%
47.30%
Loans to deposits
71.71%
73.98%
74.16%
80.47%
80.36%
Bank Capital Ratios:
Total risk-based capital ratio
15.80%
14.89%
16.00%
15.67%
14.75%
Tier 1 risk-based capital ratio
14.64%
13.84%
14.87%
14.52%
13.72%
Tier 1 leverage ratio
10.24%
10.43%
11.13%
10.31%
9.96%
Common equity tier 1 capital ratio
14.64%
13.84%
14.87%
14.52%
13.72%
Asset Quality Ratios:
Nonperforming assets as a percentage of
total assets
0.15%
0.17%
0.17%
0.21%
0.19%
Allowance for loan losses as a percentage of
total loans receivable
1.23%
1.20%
1.26%
1.29%
1.20%
Footnotes to table located at the end of this release.
CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited
Three Months Ended
Nine Months Ended
Sept 30
June 30
Mar 31
Dec 31
Sept 30
Sept 30
($ in thousands, except per share data)
2021
2021
2021
2020
2020
2021
2020
Interest income
Loans
$ 6,382
$ 6,391
$ 5,851
$ 6,156
$ 7,403
$ 18,623
$ 20,621
Investment securities
294
311
238
231
218
844
840
Other interest income
58
38
60
75
67
155
198
Total interest income
6,734
6,740
6,149
6,462
7,688
19,622
21,659
Interest expense
Deposits
257
255
286
376
519
798
1,999
Other interest expense
213
265
262
388
400
740
1,107
Total interest expense
470
520
548
764
919
1,538
3,106
Net interest income
6,264
6,220
5,601
5,698
6,769
18,084
18,553
Provision for loan losses
100
108
-
350
1,000
208
2,550
Net interest income after provision for loan
losses
6,164
6,112
5,601
5,348
5,769
17,876
16,003
Noninterest income
Mortgage banking income
2,151
2,582
3,390
5,014
7,115
8,124
14,510
Service fees on deposit accounts
315
272
279
315
290
865
995
Debit card and other service charges,
commissions, and fees
532
509
454
427
426
1,495
1,170
Income from bank owned life insurance
94
94
93
101
103
281
308
Gain (loss) on sale of securities, net
48
39
-
8
-
87
(220)
Gain on sale of loans
-
326
-
-
-
326
-
Loss on extinguishment of debt
-
-
-
(287)
-
-
-
Loss on disposal of fixed assets
-
-
-
(528)
-
-
-
Other income
166
127
100
110
117
393
287
Total noninterest income
3,306
3,949
4,316
5,160
8,051
11,571
17,050
Noninterest expense
Compensation and benefits
5,268
5,518
4,992
5,359
4,892
15,777
12,870
Occupancy
616
584
597
641
628
1,796
1,859
Furniture and equipment
323
403
450
616
572
1,176
1,694
Electronic data processing
337
319
277
241
231
933
625
Professional fees
234
242
238
400
230
715
826
Marketing
113
88
69
155
122
270
255
Other
1,132
1,166
1,048
1,280
1,288
3,347
2,845
Total noninterest expense
8,023
8,320
7,671
8,692
7,963
24,014
20,974
Income before provision for income taxes
1,447
1,741
2,246
1,816
5,857
5,433
12,079
Income tax expense
159
393
538
427
1,389
1,089
2,852
Net income available to common shareholders
$ 1,288
$ 1,348
$ 1,708
$ 1,389
$ 4,468
$ 4,344
$ 9,227
Weighted average common shares - basic
7,750
7,681
7,780
7,931
7,929
7,737
7,915
Weighted average common shares - diluted
8,084
8,164
8,168
8,089
8,015
8,160
8,012
Basic income per common share
$ 0.17
$ 0.18
$ 0.22
$ 0.18
$ 0.56
$ 0.56
$ 1.17
Diluted income per common share
$ 0.16
$ 0.17
$ 0.21
$ 0.17
$ 0.56
$ 0.53
$ 1.15
Net income for the three months ended September 30, 2021 was $1.3 million, or $0.16 per diluted common share, compared to $4.5 million, or $0.56 per diluted common share, for the three months ended September 30, 2020. Net income for the nine months ended September 30, 2021 totaled $4.3 million, or $0.53 per diluted common share, compared to $9.2 million, or $1.15 per diluted common share for the nine months ended September 30, 2020.
Noninterest income for the three months ended September 30, 2021 was $3.3 million, a decrease of $4.8 million from $8.1 million for the same period in 2020. Noninterest income is largely driven by the Company's mortgage banking division, which produced net revenue of $2.2 million on $124 million of mortgage sale volume during the three months ended September 30, 2021. The primary driver of the decrease in mortgage banking income period-over-period was a decrease in margin on loan sales. Additionally, growth in the retail channel drove the increased utilization of bank portfolio products. This negatively affected gain on sale during the quarter by approximately $0.4 million.
Noninterest expense for the three months ended September 30, 2021 was consistent with the same period in 2020 at $8.0 million. Increases in compensation and benefits expense of $0.4 million and electronic data processing expense of $0.1 million were offset by decreases in furniture and equipment expense of $0.2 million and other expenses of $0.2 million. Included in compensation and benefits for the current quarter is approximately $24 thousand in severance expense. The additional increase in compensation and benefits is driven mainly by increased headcount year-over-year.
NET INTEREST INCOME AND MARGIN – Unaudited
For the Three Months Ended
September 30, 2021
September 30, 2020
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in thousands)
Balance
Expense
Rate
Balance
Expense
Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits
$ 159,307
$ 51
0.13%
$ 110,453
$ 23
0.08%
Investment securities
55,049
294
2.12%
36,389
218
2.38%
Nonmarketable equity securities
837
7
3.38%
4,039
44
4.32%
Loans held for sale
32,181
244
3.01%
52,919
442
3.31%
Loans
548,028
6,138
4.44%
497,919
6,961
5.55%
Total interest-earning assets
795,402
6,734
3.36%
701,719
7,688
4.35%
Allowance for loan losses
(6,764)
(5,027)
Noninterest-earning assets
75,650
76,978
Total assets
$ 864,288
$ 773,670
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts
$ 133,577
$ 16
0.05%
$ 107,936
$ 13
0.05%
Savings & money market
246,212
101
0.16%
144,333
80
0.22%
Time deposits
132,972
140
0.42%
161,090
426
1.05%
Total interest-bearing deposits
512,761
257
0.20%
413,359
519
0.50%
FHLB advances and other borrowings
19,839
48
0.96%
85,383
176
0.82%
Subordinated debentures
18,144
165
3.61%
20,810
224
4.27%
Total interest-bearing liabilities
550,744
470
0.34%
519,552
919
0.70%
Noninterest bearing deposits
231,993
179,196
Other liabilities
10,903
10,474
Shareholders' equity
70,648
64,448
Total liabilities and shareholders' equity
$ 864,288
$ 773,670
Net interest income / interest rate spread
$ 6,264
3.02%
$ 6,769
3.65%
Net interest margin
3.12%
3.83%
For the Nine Months Ended
September 30, 2021
September 30, 2020
Average
Income/
Yield/
Average
Income/
Yield/
(dollars in thousands)
Balance
Expense
Rate
Balance
Expense
Rate
Assets
Interest-earning assets
Federal funds sold and interest-bearing deposits
$ 128,926
$ 109
0.11%
$ 59,668
$ 93
0.21%
Investment securities
50,139
844
2.25%
40,926
840
2.74%
Nonmarketable equity securities
909
46
6.75%
3,476
105
4.06%
Loans held for sale
34,653
740
2.85%
45,727
1,117
3.25%
Loans
517,512
17,883
4.62%
493,571
19,504
5.26%
Total interest-earning assets
732,139
19,622
3.58%
643,368
21,659
4.48%
Allowance for loan losses
(6,478)
(4,235)
Noninterest-earning assets
74,404
76,679
Total assets
$ 800,065
$ 715,812
Liabilities and Shareholders' Equity
Interest-bearing liabilities
NOW accounts
$ 129,834
$ 45
0.05%
$ 102,370
$ 35
0.04%
Savings & money market
210,738
263
0.17%
130,707
302
0.31%
Time deposits
136,221
490
0.48%
153,769
1,662
1.44%
Total interest-bearing deposits
476,793
798
0.22%
386,846
1,999
0.69%
FHLB advances and other borrowings
17,665
141
1.06%
74,653
517
0.93%
Subordinated debentures
19,901
599
4.03%
17,698
590
4.46%
Total interest-bearing liabilities
514,359
1,538
0.40%
479,197
3,106
0.86%
Noninterest bearing deposits
205,531
165,458
Other liabilities
10,695
10,378
Shareholders' equity
69,480
60,779
Total liabilities and shareholders' equity
$ 800,065
$ 715,812
Net interest income / interest rate spread
$ 18,084
3.18%
$ 18,553
3.62%
Net interest margin
3.30%
3.84%
Net interest income for the three months ended September 30, 2021 was $6.3 million compared to $6.8 million for the three months ended September 30, 2020. Included within the three months ended September 30, 2020 was approximately $0.9 million of interest and accelerated fee income on PPP loans, which were sold in August 2020. Adjusting for this PPP income, net interest income increased by $0.4 million, or 7.5%, for the three months ended September 30, 2021 compared to the same period in 2020. This increase was primarily driven by an increase in interest-earning assets as well as a decrease in the cost of interest-bearing liabilities, which decreased from 0.70% to 0.34%. Improvements in costs of interest-bearing liabilities continue to be offset to some extent by downward pressure on asset yield. Yield on interest-earning assets decreased to 3.36% for the three months ended September 30, 2021 from 3.93% (excluding PPP interest and fee income) for the same period in 2020. This decrease was driven by both a change in balance sheet mix and an overall decrease in interest rates stemming from decreases in the federal funds target rate during 2020.
Net interest income for the nine months ended September 30, 2021 was $18.1 million compared to $18.6 million for the nine months ended September 30, 2020. As mentioned previously, the prior period amounts were positively affected by $0.9 million of interest and fee income on PPP loans. If interest and fee income on PPP loans are removed from both nine-month periods, net interest income increased by $0.2 million, or 1.1%, period over period.
CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Assets
Cash and cash equivalents:
Cash and due from banks
$ 4,930
$ 5,486
$ 5,547
$ 5,521
$ 5,133
Interest-bearing deposits with banks
184,739
144,937
115,577
93,167
134,592
Total cash and cash equivalents
189,669
150,423
121,124
98,688
139,725
Time deposits in other banks
257
256
256
256
256
Investment securities:
Investment securities available for sale
58,470
56,881
54,413
32,759
35,567
Other investments
837
837
837
1,076
3,839
Total investment securities
59,307
57,718
55,250
33,835
39,406
Mortgage loans held for sale
33,667
33,097
48,912
35,642
57,853
Loans receivable:
Loans
564,738
526,362
490,326
477,968
478,745
Less allowance for loan losses
(6,934)
(6,323)
(6,168)
(6,173)
(5,721)
Loans receivable, net
557,804
520,039
484,158
471,795
473,024
Property and equipment, net
22,364
21,818
18,465
18,491
20,548
Mortgage servicing rights
13,785
13,603
13,353
12,021
11,000
Bank owned life insurance
18,383
18,289
18,195
18,102
18,001
Deferred income taxes
2,798
2,820
3,234
3,452
3,872
Other assets
13,023
14,178
14,788
17,886
17,970
Total assets
911,057
832,241
777,735
710,168
781,655
Liabilities
Deposits
$ 787,501
$ 711,505
$ 661,217
$ 594,000
$ 595,767
Federal Home Loan Bank advances
10,000
10,000
10,000
10,000
75,000
Federal funds and repurchase agreements
6,353
8,946
6,955
5,523
12,591
Subordinated debentures
15,498
10,496
10,487
10,459
10,427
Junior subordinated debentures
10,310
10,310
10,310
10,310
10,310
Other liabilities
10,983
11,393
10,548
11,147
10,178
Total liabilities
840,645
762,650
709,517
641,439
714,273
Shareholders' equity
Preferred stock - Series D non-cumulative, no par
value
1
1
1
1
1
Common Stock - $.01 par value; 20,000,000 shares
authorized
88
88
88
82
81
Non-Voting Common Stock, $.01 par value;
430,000 shares authorized
-
-
-
4
4
Treasury stock, at cost
(4,281)
(3,858)
(3,744)
(1,680)
(1,488)
Nonvested restricted stock
(2,737)
(2,928)
(2,868)
(1,487)
(1,577)
Additional paid-in capital
53,765
53,776
53,617
51,972
51,824
Retained earnings
23,053
21,765
20,417
18,709
17,320
Accumulated other comprehensive income
523
747
707
1,128
1,217
Total shareholders' equity
70,412
69,591
68,218
68,729
67,382
Total liabilities and shareholders' equity
$ 911,057
$ 832,241
$ 777,735
$ 710,168
$ 781,655
COMMON STOCK SUMMARY - Unaudited
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(shares in thousands)
2021
2021
2021
2020
2020
Voting common shares outstanding
8,784
8,788
8,784
8,154
8,129
Non-voting common shares outstanding
-
-
-
410
410
Treasury shares outstanding
(530)
(489)
(481)
(234)
(202)
Total common shares outstanding
8,254
8,299
8,303
8,330
8,337
Tangible book value per common share(5)
$ 8.41
$ 8.27
$ 8.09
$ 8.12
$ 7.95
Stock price:
High
$ 10.50
$ 10.05
$ 10.00
$ 7.80
$ 6.05
Low
$ 9.80
$ 9.65
$ 7.46
$ 5.55
$ 4.85
Period end
$ 10.30
$ 9.90
$ 9.90
$ 7.75
$ 6.05
Footnotes to table located at the end of this release.
ASSET QUALITY MEASURES – Unaudited
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Nonperforming Assets
Commercial
Owner occupied RE
$ 526
$ 535
$ 385
$ 394
$ 404
Non-owner occupied RE
-
-
-
-
-
Construction
-
-
-
-
-
Commercial business
-
-
-
-
-
Consumer
Real estate
346
383
344
461
346
Home equity
-
-
-
-
-
Construction
-
-
-
-
-
Other
121
129
164
242
299
Nonaccruing troubled debt restructurings
220
235
252
270
291
Total nonaccrual loans
$ 1,213
$ 1,282
$ 1,145
$ 1,367
$ 1,340
Other real estate owned
150
150
150
164
164
Total nonperforming assets
$ 1,363
$ 1,432
$ 1,295
$ 1,531
$ 1,504
Nonperforming assets as a percentage of:
Total assets
0.15%
0.17%
0.17%
0.21%
0.19%
Total loans receivable
0.24%
0.27%
0.26%
0.32%
0.31%
Accruing troubled debt restructurings
$ 1,444
$ 1,478
$ 1,544
$ 1,584
$ 2,508
Three Months Ended
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Allowance for Loan Losses
Balance, beginning of period
$ 6,323
$ 6,168
$ 6,173
$ 5,721
$ 4,715
Loans charged-off
72
59
55
43
76
Recoveries of loans previously charged-off
583
106
50
145
82
Net charge-offs (recoveries)
(511)
(47)
5
(102)
(6)
Provision for loan losses
100
108
-
350
1,000
Balance, end of period
$ 6,934
$ 6,323
$ 6,168
$ 6,173
$ 5,721
Allowance for loan losses to gross loans receivable
1.23%
1.20%
1.26%
1.29%
1.20%
Allowance for loan losses to nonaccrual loans
571.64%
493.21%
538.69%
451.57%
426.94%
Our asset quality remained strong through September 30, 2021, with nonperforming assets remaining at $1.4 million. The ratio of nonperforming assets to total assets decreased to 0.15% at September 30, 2021 from 0.17% at June 30, 2021. Other real estate owned and repossessed assets remain nominal. The allowance for loan losses as a percentage of total loans receivable increased slightly to 1.23% at September 30, 2021, compared to 1.20% at June 30, 2021. The Company had net recoveries of $511 thousand for the three months ended September 30, 2021 compared to net recoveries of $6 thousand for the same period in 2020. Included in net recoveries for the current quarter was a $532 thousand recovery of a previous charge-off from a single borrower.
LOAN COMPOSITION – Unaudited
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Commercial real estate
$ 318,849
$ 290,198
$ 253,300
$ 259,486
$ 259,100
Consumer real estate
107,651
97,969
91,504
92,602
92,651
Commercial and industrial
61,778
63,545
60,432
58,445
59,704
PPP
-
-
16,784
-
-
Consumer and other
76,460
74,650
68,306
67,435
67,290
Total loans, net of deferred fees
564,738
526,362
490,326
477,968
478,745
Less allowance for loan losses
6,934
6,323
6,168
6,173
5,721
Total loans, net
$ 557,804
$ 520,039
$ 484,158
$ 471,795
$ 473,024
DEPOSIT COMPOSITION – Unaudited
As of
Sept 30
June 30
Mar 31
Dec 31
Sept 30
(dollars in thousands)
2021
2021
2021
2020
2020
Noninterest-bearing
$ 246,534
$ 215,814
$ 197,831
$ 167,274
$ 173,628
Interest-bearing:
NOW accounts
133,474
132,269
131,304
120,891
108,152
Money market accounts
216,243
169,707
137,913
119,716
113,203
Savings
59,941
57,880
52,085
46,688
41,549
Time, less than $250,000
103,126
106,219
109,295
105,327
122,139
Time, $250,000 and over
28,183
29,616
32,789
34,104
37,096
Total deposits
$ 787,501
$ 711,505
$ 661,217
$ 594,000
$ 595,767
Footnotes to tables:
(1)
Total revenue is the sum of net interest income and noninterest income.
(2)
Annualized for the respective period.
(3)
Noninterest expense divided by the sum of net interest income and noninterest income.
(4)
Includes noninterest-bearing and interest-bearing NOW accounts.
(5)
The tangible book value per share is calculated as total shareholders' equity less intangible assets, divided by period-end outstanding common shares.
ABOUT FIRST RELIANCE
Founded in 1999, First Reliance Bancshares, Inc. (OTC: FSRL.OB), is based in Florence, South Carolina and has assets of approximately $911 million. The Company employs more than 187 professionals and has locations throughout South Carolina and central North Carolina. First Reliance has redefined community banking with a commitment to making customers lives better, its founding principle. Customers of the company have given it a 93% customer satisfaction rating, well above the bank industry average of 81%. First Reliance is also one of three companies throughout South Carolina to receive the Best Places To Work in South Carolina award all 15 years since the program began. We believe that this recognition confirms that our associates are engaged and committed to our brand and the communities we serve. In addition to offering a full range of personalized community banking products and services for individuals, small businesses, and corporations, First Reliance offers two unique community-customers programs, which include: Hometown Heroes, a package of benefits for those serving our communities and Check N Save, an outreach program for the unbanked or under-banked. We also offer a full suite of digital banking services, a Customer Service Guaranty, a Mortgage Service Guaranty, and are open on most traditional holidays.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements include, but are not limited to, statements with respect to our plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," and "projects," as well as similar expressions. Such statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly and have an effect on pricing, spending, third-party relationships and revenues; (2) the strength of the United States economy in general and the strength of the local economies in which we conduct operations may be different than expected resulting in, among other things, a deterioration in the credit quality or a reduced demand for credit, including the resultant effect on the Company's loan portfolio and allowance for loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan loss, the rates of loan growth, or adverse changes in asset quality in our loan portfolio, which may result in increased credit risk-related losses and expenses; (4) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (5) changes in the U.S. legal and regulatory framework including, but not limited to, the Dodd-Frank Act and regulations adopted thereunder; (6) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) could have a negative impact on the Company, including the value of its MSR asset; (7) the business related to acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; (8) the expected cost savings and any revenue synergies from acquisitions may not be fully realized within expected timeframes; and (9) disruption from acquisitions may make it more difficult to maintain relationships with clients, associates or suppliers. Moreover, a trade war or other governmental action related to tariffs or international trade agreements or policies, as well as Covid-19 or other potential epidemics or pandemics, have the potential to negatively impact ours and/or our customers' costs, demand for our customers' products, and/or the U.S. economy or certain sectors thereof and, thus, adversely affect our business, financial condition, and results of operations. All subsequent written and oral forward-looking statements concerning the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. We do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Contact:
Robert Haile
SEVP & Chief Financial Officer
(843) 656-5000
rhaile@firstreliance.com
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