FLORENCE, S.C., June 16, 2015 /PRNewswire/ -- First Reliance
Bancshares, Inc. (OTC: FSRL), the parent holding company of First
Reliance Bank, announced today the return to cash payment of
dividends on the Company's preferred stock originally issued to the
United States Treasury as part of the Troubled Asset Relief Program
(TARP) and now held by private investors, and interest on the
Company's outstanding trust preferred securities. The Company
had been in deferral on these payments since November 2011.
Rick Saunders, President and
Chief Executive Officer of the Company, commented, "As of today, we
are current on all dividend payments to holders of our TARP
preferred stock and interest payments on our trust preferred
securities. This is truly a sign of strength for our Company and a
tangible vote of confidence from our regulators. We believe this
event validates our progress toward our strategic goals over the
last year. We have posted five consecutive quarters of
profitability, we have recaptured half of our deferred tax asset
valuation allowance, we have made significant improvements in asset
quality, and we are well-positioned for success going forward."
Deferred dividends on the TARP preferred stock totaled
$4.2 million. Payments of the
deferred dividends were made in May 2015. Deferred interest
payments on outstanding trust preferred securities totaled
$876,657. The Company had
continued to accrue the interest payable on the trust preferred
securities, so payment of the deferred amount had no effect on
current earnings and capital.
As of March 31, 2015, the Bank's
leverage ratio, Tier 1 risk-based capital ratio, and total
risk-based capital ratio were 11.64%, 14.22%, and 15.14%,
respectively, exceeding all regulatory requirements.
Contact:
Jeffrey A. Paolucci, EVP &
CFO
(888) 543-5510
jpaolucci@firstreliance.com
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SOURCE First Reliance Bancshares, Inc.
