Reliance Bancshares, Inc. (fka RLBS)

[genlou]

Salty,
Reliance Bank 9-small
From left to right: Gaines S. Dittrich, Vice Chairman; Thomas H. Brouster, Sr., Chairman; Allan D. Ivie, IV, Reliance Bank President and CEO

ST. LOUIS, MO, April 5, 2013– Reliance Bancshares, Inc. (OTCPK: RLBS) the holding company of Reliance Bank today announced that Chairman Thomas H. Brouster, Sr. has successfully led the recapitalization of both Reliance Bancshares and Reliance Bank, raising $31 million dollars, representing one of the most significant bank recapitalizations in the State of Missouri during the current economic cycle.

Mr. Brouster and the local investors he assembled, now have a controlling interest in the recently delisted Company. With over 40 years of experience in the banking industry, Mr. Brouster is a highly regarded entrepreneur who has successfully led the turnaround of 14 other financial institutions throughout Missouri, Illinois and Kansas. "Our ability to raise this new capital locally, demonstrates the underlying strength of the Reliance 22 branch retail banking network," said Mr. Brouster. "This investment s us to grow the Bank, increase profitability and create additional franchise value."

Immediately following the injection of capital on March 29, 2013, the Company merged its Florida Bank , (Reliance Bank, FSB) into its Missouri Bank (Reliance Bank) thereby consolidating all banking operations into a single subsidiary.

Since the Third Quarter of 2010 Reliance Bank has operated under a Consent Order issued by the Federal Deposit Insurance Corporation (FDIC). This Order was lifted effective March 12, 2013 and the Bank is no longer subject to any regulatory orders.

Of the $31 million raised, $24 million has been injected into Reliance Bank as capital, resulting in a Tier One Capital Ratio of 10.16% as of March 31, 2013. Banking regulators consider banks with an excess of 5% capital as "well capitalized". The additional capital has improved the Bank's Texas Ratio – a commonly used metric to determine a bank's financial strength – to approximately 43% as of March 31, 2013, from a high point of 154% in March 2011.

Mr. Brouster joined Reliance Bancshares in early 2012 as a consultant. Under his guidance, the Company significantly reduced its portfolio of problem loans and assets and recorded a profit in 2012 – the first for the Company since 2007. Aiding Mr. Brouster in the Bank's turnaround has been long-term colleague Gaines S. Dittrich who is serving as Vice Chairman, and Allan D. Ivie, IV , Reliance Bank President and CEO.

Summary of Results of Operations and Financial Condition

Key Financial Metrics