First Reliance Reports Steady Earnings in Third Quarter
News related to:First Reliance Bancshares, Inc · 2 min read
FLORENCE, S.C., Oct. 28, 2026 /CourierPR/ -- First Reliance Bancshares, Inc., a holding company for First Reliance Bank, reported its financial results for the third quarter of 2026. The company's net income for the third quarter of 2026 was $2.7 million, or $0.33 per diluted share, compared to $2.7 million, or $0.33 per diluted share, for the third quarter of 2025. For the nine-months ended September 30, 2026, net income totaled $9.0 million, or $1.10 per diluted share, compared to $8.0 million, or $0.96 per diluted share for the same period in 2025. Operating earnings (Non-GAAP) were $2.9 million, or $0.36 per diluted share, for the third quarter of 2026, compared to $2.7 million, or $0.33 per diluted share, for the third quarter of 2025. For the nine-months ended September 30, 2026, operating earnings (Non-GAAP) totaled $9.2 million or $1.13 per diluted share, compared to $6.6 million, or $0.79 per diluted share, for the nine-months ended September 30, 2025.
Book value per share rose $0.98, or 8.6%, to $12.40 at September 30, 2026, from $11.42 at September 30, 2025. Tangible book value per share (Non-GAAP) increased $0.98, or 8.7%, to $12.31 from $11.33 over the same period.
Net interest income for the third quarter of 2026 was $9.9 million, up $430 thousand, or 4.6%, from the same quarter in 2025 and up $12 thousand, or 0.12%, from the second quarter of 2026. Net interest margin decreased during the third quarter of 2026 to 3.73%, compared to 3.74% in the second quarter of 2026, and increased 7 basis points compared to the third quarter of 2025.
Total loans held for investment decreased $8.4 million, or 4.1% annualized, to $812.3 million at September 30, 2026, from $820.7 million at June 30, 2026. Total loan growth for 2026 totaled $32.4 million, or 5.5% annualized.
Unfunded commitments decreased $7.7 million during the quarter, primarily due to construction loan balances declining. As a result, the unfunded commitment reserve decreased $123 thousand to $506 thousand from $629 thousand at June 30, 2026.
Total deposits were $922.4 million at September 30, 2026, an increase of $2.1 million, or 0.90% annualized, from $920.3 million at June 30, 2026.
Nonperforming assets increased by $5.9 million to $6.6 million or 0.59% of total assets, at September 30, 2026, compared with $626 thousand, or 0.06% of total assets, at June 30, 2026. The increase was primarily due to one loan totaling $5.5 million. This loan was sufficiently collateralized and there was no specific allowance for credit loss recorded as of September 30, 2026.
In June 2026, the Company announced a partnership with Colony Bank (CBAN), headquartered in Fitzgerald, Georgia. Bank regulatory approvals have been received, and shareholders of both companies have approved the merger. The remaining customary closing requirements should be completed and closing is scheduled for November 1, 2026. Systems conversion is scheduled for June 2027. Based on each company's total assets at September 30, 2026, the combined company will have nearly $5.0 billion in total assets.
First Reliance had no held-to-maturity (HTM) securities for any reported period. All debt securities were classified as available-for-sale (AFS), with balances of $187.9 million at September 30, 2026, and $199.7 million at September 30, 2025. The unrealized loss on these securities was $12.