First Reliance Bancshares Reports Third Quarter 2025 Results

First RelianceBancshares, 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 2025.

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Third Quarter 2025 Highlights

— Net income increased 48.8% for the third quarter of 2025 to $2.7 million, or $0.33 per diluted share, compared to $1.8 million, or $0.22 per diluted share, for the third quarter of 2024. For the nine months ended September 30, 2025, net income totaled $8.0 million, or $0.96 per diluted share, compared to $5.0 million, or $0.61 per diluted share for the same period in 2024. Operating earnings (Non-GAAP) increased 39.2% for the third quarter of 2025 to $2.7 million, or $0.33 per diluted share, compared to $2.0 million, or $0.24 per diluted share, for the third quarter of 2024. For the nine months ended September 30, 2025, operating earnings (Non-GAAP) totaled $6.6 million or $0.79 per diluted share, compared to $5.1 million, or $0.63 per diluted share, for the comparable period of 2024.

— Book value per share increased $1.44, or 14.4%, from $9.98 per share at September 30, 2024, to $11.42 per share at September 30, 2025. Tangible book value per share (Non-GAAP) increased $1.44, or 14.6%, from $9.89 per share at September 30, 2024, to $11.33 per share at September 30, 2025.

— Net interest income for the third quarter of 2025 was $9.5 million, which represents an increase of $1.3 million, or 16.7%, compared to the same quarter one year ago. Compared to the second quarter of 2025, the increase was $344,000, or 3.8%.

— Net interest margin increased during the third quarter of 2025 to 3.66%, compared to 3.53% in the second quarter of 2025, and increased 39 basis points compared to the third quarter of 2024.

— The third quarter of 2025 efficiency ratio improved to 69.61% down from 76.90% one year ago. The adjusted efficiency ratio (Non-GAAP) improved from 72.82% in the third quarter of 2024 to 69.61% in the third quarter of 2025.

— Total loans held for investment decreased $4.8 million, or 2.4% annualized, to $780.0 million at September 30, 2025, from $784.7 million at June 30, 2025. This decrease was the result of the decline in the loan portfolio associated with the North Carolina branches (deposits and locations sold in the second quarter of 2025), which totaled approximately $9.8 million.

— Total deposits increased $9.0 million, or 3.8% annualized, to $959.3 million at September 30, 2025, from $950.3 million at June 30, 2025.

— Asset quality remains strong. Nonperforming assets increased to $369 thousand, or 0.03% of total assets at September 30, 2025, compared to $205 thousand, or 0.02% of total assets at June 30, 2025. This increase was related to one mortgage loan that is fully collateralized.

— In June 2025, the Company's Board approved a stock repurchase program authorizing the purchase of up to $3.0 million of outstanding common stock through expiration of the program on June 30, 2026. The repurchase program does not obligate the Company to purchase any particular number of shares and may be modified or terminated by the Company's Board of Directors at any time. During the third quarter of 2025, the Company repurchased 122,316 shares at a weighted-average cost per share of $9.71.

Rick Saunders, Chief Executive Officer, commented, “Operating earnings per share improved 22%, in the third quarter of 2025, from the second quarter of 2025. Our net interest margin increased 13 basis points and our adjusted efficiency ratio improved to 69.6%. Tangible book value per share grew by $1.44 per share over the past year to $11.33, an increase of 14.6%. We grew deposit balances by $9.0 million, or 3.8% annualized. Loan growth remained muted in the third quarter of 2025, primarily from the loans paid down and paid off associated with the sale of the North Carolina branches. Credit quality remains strong with low nonperforming assets and low net charge offs. Our return on average tangible equity was 10.83% thus far in 2025, excluding nonrecurring items. Our bankers and teams are executing high quality service for our customers through relationship banking throughout our markets in South Carolina.”

Financial Summary Three Months Ended Nine Months Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Sep 30 Sep 30($ in thousands, except per share data) 2025 2025 2025 2024 2024 2025 2024Earnings:Net income available to common shareholders $ 2,714 $ 3,653 $ 1,613 $ 918 $ 1,825 $ 7,980 $ 5,005Operating earnings (Non-GAAP) 2,714 2,248 1,665 1,698 1,950 6,627 5,130Earnings per common share, diluted (GAAP) 0.33 0.44 0.19 0.11 0.22 0.96 0.61Operating earnings per common share, diluted (Non-GAAP) 0.33 0.27 0.20 0.21 0.24 0.79 0.63Total revenue(1) 12,238 13,920 11,158 9,809 9,855 37,316 29,771Net interest margin 3.66% 3.53% 3.49% 3.38% 3.27% 3.58% 3.20%Return on average assets(2) 0.99% 1.32% 0.59% 0.35% 0.69% 0.97% 0.65%Return on average assets – Operating Non-GAAP(2) 0.99% 0.81% 0.61% 0.64% 0.74% 0.81% 0.66%Return on average equity(2) 12.55% 17.84% 8.15% 4.66% 9.60% 12.93% 9.16%Return on average equity – Operating Non-GAAP(2) 12.55% 10.98% 8.41% 8.62% 10.26% 10.74% 9.39%Efficiency ratio(3) 69.61% 64.61% 75.52% 86.42% 76.90% 69.51% 77.67%Adjusted efficiency ratio – Non-GAAP(3) 69.61% 74.03% 75.04% 78.29% 75.66% 72.82% 77.25% As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024Balance Sheet:Total assets $ 1,097,846 $ 1,102,203 $ 1,097,389 $ 1,067,104 $ 1,071,480Total loans receivable 779,997 784,749 784,469 753,738 739,219Total deposits 959,300 950,339 978,667 951,411 951,948Total transaction deposits(4) to total deposits 40.68% 39.50% 39.46% 38.64% 38.82%Loans to deposits 81.31% 82.58% 80.16% 79.22% 77.65%Bank Capital Ratios:Total risk-based capital ratio 13.58% 12.88% 12.99% 13.48% 13.56%Tier 1 risk-based capital ratio 12.48% 11.84% 11.92% 12.43% 12.51%Tier 1 leverage ratio 9.94% 9.74% 9.80% 9.96% 9.87%Common equity tier 1 capital ratio 12.48% 11.84% 11.92% 12.43% 12.51%Asset Quality Ratios:Nonperforming assets as a percentage of 0.03% 0.02% 0.09% 0.11% 0.09%total assetsAllowance for credit losses as a percentage 1.12% 1.09% 1.10% 1.12% 1.13%of total loans receivableAnnualized net charge-offs as a percentage 0.02% 0.03% 0.08% 0.00% 0.03%of average total loan receivablesCONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited Three Months Ended Nine Months Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Sep 30($ in thousands, except per share data) 2025 2025 2025 2024 2024 2025 2024Interest incomeLoans $ 11,842 $ 11,657 $ 11,293 $ 11,053 $ 10,930 $ 34,792 $ 31,761Investment securities 2,300 2,145 2,166 2,015 1,969 6,611 5,816Other interest income 323 505 318 512 623 1,146 1,333Total interest income 14,465 14,307 13,777 13,580 13,522 42,549 38,910Interest expenseDeposits 4,536 4,703 4,468 4,613 4,833 13,707 13,817Other interest expense 476 495 544 564 585 1,515 2,115Total interest expense 5,012 5,198 5,012 5,177 5,418 15,222 15,932Net interest income 9,453 9,109 8,765 8,403 8,104 27,327 22,978Provision for credit (recovery of) losses 90 88 707 141 (83) 885 179Net interest income after provision for credit losses 9,363 9,021 8,058 8,262 8,187 26,442 22,799Noninterest incomeMortgage banking income 1,577 1,586 1,351 1,207 805 4,514 3,596Service fees on deposit accounts 412 299 319 327 327 1,030 970Debit card and other service charges, 531 543 529 550 528 1,603 1,615commissions, and feesIncome from bank owned life insurance 108 104 102 108 105 314 310Loss on sale of securities, net – – (182) (146) (162) (182) (162)Gain on sale of branches – 2,313 – – – 2,313 -Gain on early extinguishment of debt – – 140 – – 140 -Gain (loss) on disposal /write down of fixed assets – (200) – (838) – (200) 20Other income 157 166 134 198 148 457 444Total noninterest income 2,785 4,811 2,393 1,406 1,751 9,989 6,793Noninterest expenseCompensation and benefits 5,431 5,574 5,281 5,028 4,682 16,286 14,253Occupancy and equipment 736 770 791 890 848 2,297 2,526Data processing, technology, and communications 1,061 1,143 1,156 1,184 994 3,360 3,152Professional fees 195 248 153 268 265 596 471Marketing 155 175 123 103 66 453 328Other 941 1,083 923 1,003 723 2,947 2,393Total noninterest expense 8,519 8,993 8,427 8,476 7,578 25,939 23,123Income before provision for income taxes 3,629 4,839 2,024 1,192 2,360 10,492 6,469Income tax expense 915 1,186 411 273 535 2,512 1,464Net income available to common shareholders $ 2,714 $ 3,653 $ 1,613 $ 919 $ 1,825 $ 7,980 $ 5,005Addback loss on fixed assets, net of tax – 151 – 646 – 151 -Subtract gain on sale of branches, net of tax – (1,746) – – – (1,746) -Subtract gain on early extinguishment of debt, net of tax – – (111) – – (111) -Addback expenses related to branch sale, net of tax – 190 18 21 – 208 -Addback securities losses, net of tax – – 145 113 125 145 125Operating net income (non-GAAP) 2,714 2,248 1,665 1,699 1,950 6,627 5,130Weighted average common shares – basic 7,902 7,892 7,868 7,851 7,847 7,887 7,845Weighted average common shares – diluted 8,349 8,350 8,331 8,274 8,221 8,344 8,255Basic net income per common share* $ 0.34 $ 0.46 $ 0.21 $ 0.21 $ 0.23 $ 1.01 $ 0.64Diluted net income per common share* $ 0.33 $ 0.44 $ 0.19 $ 0.11 $ 0.22 $ 0.96 $ 0.61Operating basic net income per common share (non-GAAP)* $ 0.34 $ 0.28 $ 0.21 $ 0.22 $ 0.25 $ 0.84 $ 0.66Operating diluted net income per common share (non-GAAP)* $ 0.33 $ 0.27 $ 0.20 $ 0.21 $ 0.24 $ 0.79 $ 0.63*Note that the sum of the quarter may not equal the YTD result due to rounding of earnings per share each quarter, given the weighted average shares outstanding basic and diluted.

Footnotes to table located at the end of this release.

Net income for the three months ended September 30, 2025, was $2.7 million, or $0.33 per diluted common share, compared to $1.8 million, or $0.22 per diluted common share, for the three months ended September 30, 2024. Operating net income (Non-GAAP), for the three months ended September 30, 2025, was $2.7 million, or $0.33 per diluted common share, compared to $2.0 million, or $0.24 per diluted common share for the three months ended September 30, 2024. Net income for the nine months ended September 30, 2025, totaled $8.0 million, or $0.96 per diluted common share, compared to $5.0 million, or $0.61 per diluted common share for the comparable period of 2024. On an operating basis, diluted EPS (Non-GAAP) was $0.79 per diluted common share, for the nine months ended September 30, 2025, which includes adding back the impact of securities losses, net of tax, the impact of fixed asset write downs, net of tax, and the impact of expenses related to the branch sales, net of tax, offset by subtracting the gain recognized on the sale of branches, net of tax and the gain from the early extinguishment of debt, net of tax, compared to $0.63 per diluted common share, for the nine months ended September 30, 2024.

Noninterest income, for the three months ended September 30, 2025, was $2.8 million, an increase of $1.0 million from $1.8 million for the same period in 2024. Noninterest income was primarily driven by mortgage banking income and totaled $1.6 million in the third quarter of 2025 compared to $805 thousand in the third quarter of 2024. In addition, all of the other categories of noninterest income increased.

For the nine months ended September 30, 2025, noninterest income increased by $3.2 million, driven by improved mortgage banking income of $918 thousand, gain on sale of branches of $2.3 million, and gain on the early extinguishment of debt of $140 thousand. These improvements were partially offset by the write down of fixed assets of $200 thousand, compared to a $20 thousand gain in the same period of 2024.

Noninterest expense, for the three months ended September 30, 2025, was $8.5 million, an increase of $941 thousand from $7.6 million for the same period in 2024. This increase in expense was primarily driven by an increase in compensation and benefits of $749 thousand due primarily to mortgage commissions, salaries and stock compensation expense, and $218 thousand in other expense primarily associated with costs related ATM and debit card losses, a contract cancellation and receipt of lawsuit settlement in 2024.

Noninterest expense, for the ninemonths ended September 30, 2025, was $25.9 million and increased $2.8 million from the same period in 2024. This increase in noninterest expense was primarily related to compensation and benefits of $2.0 million attributable to salaries, mortgage commissions and stock compensation expense, an increase in professional fees of $125 thousand related to audit expense associated with FDICIA compliance, an increase in marketing of $125 thousand, and $554 thousand increase in other expense, which includes $336 thousand associated with costs related to the sale of the two branches in North Carolina.

There were no operating adjustments in 3Q 2025.

Operating adjustments – 2Q 2025

During the second quarter of 2025, the Company sold the two North Carolina locations to Carter Bank from Virginia. This sale resulted in a gain of $2.3 million on the deposits assumed by Carter Bank, before expenses. Expenses directly related to the branches sold totaled $252 thousand in the second quarter of 2025. Operating net income reflects the removal of these two items. Total deposits assumed by Carter Bank were $55.9 million. No loans were acquired in this transaction by Carter Bank.

Additionally, the Company wrote down a parcel of land in North Charleston by $200 thousand. This parcel remains for sale. Operating net income reflects the add back of this item, net of tax, totaling $151 thousand.

Operating adjustments – 1Q 2025

During the first quarter of 2025, the Company recorded the following non-recurring transactions:

— Paid off subordinated indebtedness of $1.0 million with $860 thousand, resulting in a pre-tax gain of $140 thousand,

— Recorded pre-tax securities losses of $182 thousand, and

— Recorded pre-tax branch disposal related costs of $23 thousand.

NET INTEREST INCOME AND MARGIN – Unaudited – QTD For the Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/($ in thousands) Balance Expense Rate Balance Expense Rate Balance Expense RateAssetsInterest-earning assetsFederal funds sold and interest- $ 35,237 $ 296 3.33% $ 46,216 $ 478 4.15% $ 50,030 $ 588 4.68%bearing depositsInvestment securities 193,519 2,300 4.72% 186,573 2,145 4.61% 173,728 1,969 4.51%Nonmarketable equity securities 1,795 26 5.84% 1,665 28 6.65% 1,509 35 9.19%Loans held for sale 12,381 301 9.65% 16,269 353 8.70% 21,629 347 6.38%Loans 780,426 11,541 5.87% 783,489 11,304 5.79% 737,666 10,583 5.71%Total interest-earning assets 1,023,358 14,465 5.61% 1,034,212 14,307 5.55% 984,562 13,522 5.46%Allowance for credit losses (8,508) (8,652) (8,491)Noninterest-earning assets 80,739 80,987 78,402Total assets $ 1,095,588 $ 1,106,547 $ 1,054,473Liabilities and Shareholders' EquityInterest-bearing liabilitiesNOW accounts $ 123,107 $ 230 0.74% $ 158,726 $ 242 0.61% $ 138,726 $ 236 0.68%Savings & money market 410,051 2,893 2.80% 435,548 3,127 2.88% 384,155 2,941 3.05%Time deposits 168,116 1,413 3.33% 158,378 1,334 3.38% 175,921 1,656 3.74%Total interest-bearing deposits 701,274 4,536 2.57% 752,652 4,703 2.51% 698,802 4,833 2.75%FHLB advances and other borrowings 20,652 217 4.17% 17,913 191 4.29% 15,979 226 5.63%Subordinated debentures 19,775 259 5.19% 23,228 304 5.25% 25,743 359 5.55%Total interest-bearing 741,701 5,012 2.68% 793,793 5,198 2.63% 740,524 5,418 2.91%liabilitiesNoninterest bearing deposits 253,702 217,979 224,121Other liabilities 13,666 12,885 13,807Shareholders' equity 86,519 81,890 76,021Total liabilities and $ 1,095,588 $ 1,106,547 $ 1,054,473shareholders' equityNet interest income (tax equivalent) / interest $ 9,453 2.93% $ 9,109 2.92% $ 8,104 2.55%rate spreadNet Interest Margin 3.66% 3.53% 3.27%Cost of funds, including 2.00% 2.06% 2.23%noninterest-bearing deposits

Net interest income, for the three months ended September 30, 2025, was $9.5 million compared to $8.1 million for the three months ended September 30, 2024. This increase was the result of an increase in interest income of $943 thousand and a decrease in interest expense of $406 thousand. This resulted in an improved net interest margin to 3.66% from 3.27% one year ago. Loans and securities had the largest gains in income and in yields compared to the prior year, partially offset by interest- bearing cash and fed funds sold and nonmarketable equity securities. While lower yields in all categories of interest-bearing liabilities, except NOW accounts, contributed to the improved net interest margin. In addition, the total cost of funds, including noninterest-bearing deposits, decreased to 2.00% in the third quarter of 2025, compared to 2.23% in the third quarter of 2024.

NET INTEREST INCOME AND MARGIN – Unaudited – YTD For the Nine Months Ended September 30, 2025 September 30, 2024 Average Income/ Yield/ Average Income/ Yield/(dollars in thousands) Balance Expense Rate Balance Expense RateAssetsInterest-earning assetsFederal funds sold and interest-bearing deposits $ 37,905 $ 1,066 3.76% $ 36,339 $ 1,233 4.53%Investment securities 186,815 6,611 4.73% 170,643 5,816 4.55%Nonmarketable equity securities 1,716 80 6.24% 1,897 100 7.02%Loans held for sale 16,065 1,018 8.47% 20,563 1,047 6.80%Loans 777,837 33,774 5.81% 728,337 30,714 5.63%Total interest-earning assets 1,020,339 42,549 5.58% 957,779 38,910 5.43%Allowance for credit losses (8,564) (8,464)Noninterest-earning assets 80,756 79,272Total assets $ 1,092,531 $ 1,028,587Liabilities and Shareholders' EquityInterest-bearing liabilitiesNOW accounts $ 142,638 $ 702 0.66% $ 140,904 $ 774 0.73%Savings & money market 421,621 8,892 2.82% 362,942 8,097 2.98%Time deposits 161,259 4,113 3.41% 176,586 4,946 3.74%Total interest-bearing deposits 725,518 13,707 2.53% 680,432 13,817 2.71%FHLB advances and other borrowings 19,407 622 4.28% 24,322 1,019 5.59%Subordinated debentures 22,649 893 5.27% 25,735 1,096 5.69%Total interest-bearing liabilities 767,574 15,222 2.65% 730,489 15,932 2.91%Noninterest bearing deposits 229,737 211,620Other liabilities 12,922 13,639Shareholders' equity 82,298 72,839Total liabilities and shareholders' equity $ 1,092,531 $ 1,028,587Net interest income (tax equivalent) / interest $ 27,327 2.93% $ 22,978 2.52%rate spreadNet Interest Margin 3.58% 3.20%Cost of funds, including noninterest bearing deposits 2.04% 2.26%

Net interest income for the nine months ended September 30, 2025, totaled $27.3 million compared to $23.0 million for the nine months ended September 30, 2024, an increase of $4.3 million. The net interest margin was 3.58% for the first nine months of 2025 compared to 3.20% for the same period in 2024. The yield on interest-earning assets improved by 14 basis points to 5.57%, led by loans and investment securities. Yields on all interest-bearing liabilities have also declined in all categories, with total yield on interest-bearing liabilities declining by 26 basis points. The total cost of funds, including noninterest-bearing deposits was 2.04% compared to 2.26% in 2024.

CONDENSEDCONSOLIDATED BALANCE SHEETS – Unaudited As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024AssetsCash and cash equivalents:Cash and due from banks $ 5,072 $ 4,066 $ 5,011 $ 4,604 $ 4,730Interest-bearing deposits with banks 26,695 29,487 32,922 42,623 61,934Total cash and cash equivalents 31,767 33,553 37,933 47,227 66,664Investment securities:Investment securities available for sale 199,674 194,136 181,596 175,846 177,641Other investments 1,527 2,497 950 886 883Total investment securities 201,201 196,633 182,546 176,732 178,524Mortgage loans held for sale 13,336 14,944 22,424 20,974 19,929Loans receivable:Loans 779,997 784,749 784,469 753,738 739,219Less allowance for credit losses (8,741) (8,535) (8,654) (8,434) (8,317)Loans receivable, net 771,256 776,214 775,815 745,304 730,902Property and equipment, net 23,313 22,469 21,987 21,353 21,861Mortgage servicing rights 14,421 14,093 13,614 13,410 12,690Bank owned life insurance 18,922 18,815 18,710 18,608 18,501Deferred income taxes 6,221 6,510 6,938 7,709 6,292Other assets 17,409 18,972 17,422 15,787 16,117Total assets 1,097,846 1,102,203 1,097,389 1,067,104 1,071,480LiabilitiesDeposits $ 959,300 $ 950,339 $ 978,667 $ 951,411 $ 951,948Federal Home Loan Bank advances 15,000 32,500 – – -Federal funds and repurchase agreements – 207 – – -Subordinated debentures 9,469 9,461 14,453 15,444 15,436Junior subordinated debentures 10,310 10,310 10,310 10,310 10,310Reserve for unfunded commitments 767 925 771 428 410Other liabilities 13,498 12,560 11,972 11,755 12,866Total liabilities 1,008,344 1,016,302 1,016,173 989,348 990,970Shareholders' equityPreferred stock – Series D non-cumulative, no par 1 1 1 1 1valueCommon Stock – $.01 par value; 20,000,000 shares 88 88 88 88 88authorizedTreasury stock, at cost (7,883) (6,654) (6,458) (5,699) (5,285)Nonvested restricted stock (2,359) (2,536) (2,566) (2,340) (2,444)Additional paid-in capital 56,931 56,708 56,408 55,789 55,763Retained earnings 47,652 44,937 41,284 39,671 38,753Accumulated other comprehensive loss (4,928) (6,643) (7,541) (9,754) (6,366)Total shareholders' equity 89,502 85,901 81,216 77,756 80,510Total liabilities and shareholders' equity $ 1,097,846 $ 1,102,203 $ 1,097,389 $ 1,067,104 $ 1,071,480

First Reliance cash and cash equivalents totaled $31.8 million at September 30, 2025, compared to $33.6 million at June 30, 2025. Cash with the Federal Reserve Bank totaled $26.5 million compared to $61.6 million at September 30, 2024.

First Reliance does not have any Held-to-Maturity (HTM) securities for any reported period. All debt securities were classified as Available-For-Sale (AFS) securities with balances of $199.7 million and $194.1 million, at September 30, 2025 and June 30, 2025, respectively. The unrealized loss recorded on these securities totaled $6.5 million as of September 30, 2025, compared to $8.8 million at June 30, 2025, a decrease in the unrealized loss during the third quarter of $2.3 million (before taxes).

As of September 30, 2025, deposits increased by $9.0 million, or 3.8% annualized. During the third quarter, the bank reclassified certain interest-bearing transactional accounts (money market accounts) to non-interest-bearing demand deposit accounts. See the table on page 10 for detail.

The Company had $15.0 million in outstanding borrowings with the Federal Home Loan Bank (FHLB) of Atlanta at September 30, 2025, down from $32.5 million at June 30, 2025. The Company had remaining credit availability in excess of $304.9 million with the FHLB of Atlanta, subject to collateral requirements.

First Reliance also has access to approximately $23.1 million through the Federal Reserve Bank discount window with posted collateral. There are currently no borrowings against the Federal Reserve Bank discount window.

COMMON STOCK SUMMARY – Unaudited As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30(shares in thousands) 2025 2025 2025 2024 2024Voting common shares outstanding 8,794 8,787 8,786 8,764 8,820Treasury shares outstanding (954) (830) (809) (731) (751)Total common shares outstanding 7,840 7,957 7,977 8,033 8,069Book value per common share $ 11.42 $ 10.80 $ 10.18 $ 9.68 $ 9.98Tangible book value per common $ 11.33 $ 10.71 $ 10.09 $ 9.59 $ 9.89share – Non-GAAP(5)Stock price:High $ 10.21 $ 10.00 $ 9.98 $ 10.24 $ 10.59Low $ 9.36 $ 9.00 $ 9.35 $ 9.16 $ 7.60Period end $ 10.10 $ 9.60 $ 9.45 $ 9.59 $ 10.14ASSET QUALITY MEASURES – Unaudited As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024Nonperforming AssetsCommercialOwner occupied RE $ 36 $ 39 $ 42 $ 44 $ 46Non-owner occupied RE – – 655 646 701Construction – – – 66 -Commercial business 38 43 146 328 57ConsumerReal estate 226 39 40 42 44Home equity – – – – -Construction – – – – -Other 69 84 50 64 61Nonaccruing loan modifications – – – – -Total nonaccrual loans $ 369 $ 205 $ 933 $ 1,190 $ 909Other assets repossessed – – – 11 15Total nonperforming assets $ 369 $ 205 $ 933 $ 1,201 $ 924Nonperforming assets as a percentage of:Total assets 0.03% 0.02% 0.09% 0.11% 0.09%Total loans receivable 0.05% 0.03% 0.12% 0.16% 0.12%Accruing loan modifications $ 683 $ 797 $ 369 $ 400 $ 428 Three Months Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024Allowance for Credit LossesBalance, beginning of period $ 8,535 $ 8,654 $ 8,434 $ 8,317 $ 8,498Loans charged-off 48 110 163 24 69Recoveries of loans previously charged-off 6 57 19 18 17Net charge-offs 42 53 144 6 52Provision for credit (recovery of) losses 248 (66) 364 123 (129)Balance, end of period $ 8,741 $ 8,535 $ 8,654 $ 8,434 $ 8,317Allowance for credit losses to gross loans 1.12% 1.09% 1.10% 1.12% 1.13%receivableAllowance for credit losses to nonaccrual loans 2368.83% 4163.41% 927.54% 708.74% 914.96%

Asset quality remained strong during the third quarter of 2025, with nonperforming assets increasing to $369 thousand, which represents 0.03% of total assets. The allowance for credit losses as a percentage of total loans receivable increased to 1.12% at September 30, 2025, compared to 1.09% at June 30, 2025, and 1.12% at December 31, 2024. The allowance for credit losses increased by a provision for credit losses of $248 thousand and decreased by net charge-offs of $42 thousand, during the third quarter of 2025. In the third quarter of 2024, the Company experienced net charge-offs of $52 thousand and decreased the ACL with a release of the provision for credit losses of $129 thousand. The ACL was 1.13% of total loans at September 30, 2024.

Footnotes to table located at the end of this release.

LOAN COMPOSITION – Unaudited As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024Commercial real estate $ 471,002 $ 483,278 $ 482,201 $ 463,301 $ 456,775Consumer real estate 220,767 223,310 216,964 204,303 193,362Commercial and industrial 71,802 61,255 65,573 65,980 66,561Consumer and other 16,426 16,906 19,731 20,154 22,521Total loans, net of deferred fees 779,997 784,749 784,469 753,738 739,219Less allowance for credit losses 8,741 8,535 8,654 8,434 8,317Total loans, net $ 771,256 $ 776,214 $ 775,815 $ 745,304 $ 730,902DEPOSIT COMPOSITION – Unaudited As of Sep 30 Jun 30 Mar 31 Dec 31 Sep 30($ in thousands) 2025 2025 2025 2024 2024Noninterest-bearing $ 292,107 $ 219,352 $ 224,031 $ 227,471 $ 219,279Interest-bearing:DDA and NOW accounts 98,135 156,062 162,129 140,116 150,312Money market accounts 360,621 379,078 393,736 381,602 362,834Savings 38,279 38,995 39,719 40,627 41,184Time, less than $250,000 126,195 125,607 122,613 120,397 133,940Time, $250,000 and over 43,963 31,245 36,439 41,198 44,399Total deposits $ 959,300 $ 950,339 $ 978,667 $ 951,411 $ 951,948Footnotes 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 DDA and 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 $1.098 billion. The Company employs approximately 166 professionals and has locations throughout South 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 92% customer satisfaction rating, well above the bank industry average of 82%. First Reliance is also one of two companies throughout South Carolina to receive the Best Places to Work in South Carolina award all 19 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. The Company offers a full range of personalized community banking products and services for individuals, small businesses, and corporations. The Company also offers a full suite of digital banking services, Treasury Services, a Customer Service Guaranty, a Mortgage Service Guaranty, and First Reliance Wealth Strategies.

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 credit losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for credit 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 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 HaileSEVP & Chief Financial Officer(843) 656-5000rhaile@firstreliance.com

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