First Reliance Bancshares Q3 net interest income up 4.6%

Overview

• US community bank's Q3 net income and diluted EPS were flat yr/yr

• Operating diluted EPS rose yr/yr

• Net interest income increased 4.6% from a year earlier

Outlook

• Company expects merger with Colony Bank to close on Nov 1, 2026

• Systems conversion for Colony Bank merger set for June 2027

• Combined company to have nearly $5.0 bln in assets post-merger

Result Drivers

• HIGHER INTEREST INCOME - Co said increased income from loans and securities drove net interest income growth

• LOWER MORTGAGE BANKING INCOME - Co said decline in mortgage banking income contributed to lower noninterest income

• HIGHER NONPERFORMING ASSETS - Co said increase in nonperforming assets was mainly due to one owner-occupied loan moving to nonaccrual

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Reliance Bancshares Inc is $17.00, about 11.2% below its October 27 closing price of $19.14

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 27 - CF Bankshares Q3 net income jumps 158% on loan growth

• Oct 27 - KS Bancorp Q3 net income rises 15% on continued loan demand

• Oct 27 - Camden National Q3 net income rises on deposit growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)