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U.S. Life Insurance Activity Hits Record Growth in 2020 Reports the MIB Life Index

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BRAINTREE, Mass., Jan. 13, 2021 /PRNewswire/ — U.S. life insurance application activity ended 2020 up +4.0, the highest annual year over year growth rate on record, according to the year-end MIB Life Index. December 2020 was up 3.7% over December 2019, the highest YOY growth rate for the month of December since 2011.

Growth in 2020 was largely driven by younger age groups with full year activity over 2019 increasing among ages 0-44 by +7.9% and +3.8% for ages 45-59. In contrast, activity for ages 60+ decreased by -1.7%. This reflects a shift from the previous 2 years were the 60+ age group experienced growth while the 0-44 age group saw declines.

Month-over-month, December 2020 was down -9.5% from November, representing an expected, though somewhat stronger than usual, seasonal decline. Year-over-year, application activity increased in all but 2 months in 2020. The year began strong with February experiencing record YOY growth of +5.6%, but with the onset of the pandemic, activity in March and April declined (-2.2% and -3.0% respectively). Activity returned to growth in May and we went on to have record YOY growth months in July (+14.1%), August (+9.1%), September (+4.4%) and October (+7.6%) and then again in December (+3.7%).

Based on information provided to MIB, growth was seen across all face amounts up to and including $2.5M, with double digit growth in face amounts above $5M. However, activity by face amount varied greatly among age groups. Activity for the younger set ages 0-44 increased across all face amounts, with double digit growth in policies over $250K and up to and including $1M as well as over $5M. In contrast, activity for ages 71+ increased only in face amounts over $5M, decreasing in all other categories.

Similarly, information provided to MIB showed overall growth across all product types. However, younger applicants up to age 30 appear to lean toward indexed or interest sensitive products whereas their older counterparts ages 61+ appear to be more concerned about guaranteed value. This is reflected in a double digit (11.2%) increase in Universal Life applications for ages 0-44 and increases in Traditional Whole Life for ages 61+ (7-8%) as well as a decrease in term applications for ages 61+ (in double digits for those 71+).

MIB members may visit the Enhanced Life Index Analytic Portal to read the full 2020 MIB Life Index Annual Report for detailed insights on how 2020 compared to prior years (log in required).

Members who do not yet have access to that site may register here:
Registration (mibsolutions.com)

Monthly Percent Change
Composite Index

(year over year)

Dec-20

3.7%

Nov-20

1.6%

Oct-20

7.6%

Sep-20

4.4%

Aug-20

9.1%

Jul-20

14.1%

Jun-20

1.2%

May-20

5.2%

Apr-20

-3.0%

Mar-20

-2.2%

Feb-20

5.6%

Jan-20

2.5%

YTD-2020

4.0%

Annual-2019

0.4%

Q4-2020

4.3%

Q3-2020

9.2%

Q2-2020

1.0%

Q1-2020

1.8%

Q4-2019

1.3%

 

Monthly % Change
Age Groups

(year over year)

0-44

45-59

60+

Dec-20

3.8%

5.6%

0.8%

Nov-20

3.5%

2.4%

-5.0%

Oct-20

11.5%

8.3%

-3.0%

Sep-20

7.2%

4.6%

-2.5%

Aug-20

12.4%

10.1%

-0.3%

Jul-20

18.9%

12.9%

4.0%

Jun-20

3.7%

1.3%

-5.5%

May-20

7.1%

6.9%

-1.9%

Apr-20

-0.7%

-2.4%

-9.7%

Mar-20

0.3%

-4.2%

-6.2%

Feb-20

7.0%

2.6%

6.4%

Jan-20

3.4%

0.1%

3.4%

YTD 2020

7.9%

3.8%

-1.7%

 

US Monthly Percent
Change vs Prior Month

December

-9.5%

About the MIB Life Index
The MIB Life Index is the life insurance industry's timeliest measure of application activity in the United States. Released to the media each month, the Index is based on the number of searches MIB life member company underwriters perform on the MIB Checking Service database. Since over 95% of life insurance applications in North America include an MIB search, as a routine underwriting requirement, the MIB Life Index provides a reasonable means to estimate new business activity. For past releases, methodology or to subscribe visit www.mibgroup.com/lifeindex.

About MIB
MIB is the life and health insurance industry's most trusted and secure resource for data-driven risk management services and digital solutions that protect the financial integrity of its members and clients while addressing their evolving needs. Owned by member life and health insurance companies who span the life insurance industry, MIB is uniquely positioned to provide data-driven solutions that address common industry challenges and enable clients to gain efficiencies, manage their risks and grow profitably. MIB Group, Inc., a membership corporation, provides services through its wholly owned operating subsidiaries, MIB, Inc. and MIB Solutions, Inc. For more information, visit www.mibgroup.com

Contact: Betty-Jean Lane, MIB Group, Inc., 781-751-6135, [email protected]

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SOURCE MIB Group, Inc.

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Healthpeak Properties Announces Results of Cash Tender Offers for Any and All of its $1.45 Billion of Notes

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DENVER, Jan. 28, 2021 /PRNewswire/ — Healthpeak Properties, Inc. (NYSE: PEAK) (the “Offeror”) today announced the results of its previously announced offers (the “Offers”) to purchase for cash any and all of its outstanding $300 million aggregate principal amount of 4.250% Senior Notes due 2023 (the “2023 Notes”), $350 million aggregate principal amount of 4.200% Senior Notes due 2024 (the “4.200% 2024 Notes”) and $800 million aggregate principal amount of 3.875% Senior Notes due 2024 (the “3.875% 2024 Notes,” and together with the 2023 Notes and the 4.200% 2024 Notes, the “Securities”) from each registered holder of the Securities (the “Holders”), which expired as of 5:00 p.m., New York City time, on January 27, 2021 (the “Expiration Time”). The Offers were made pursuant to an Offer to Purchase, dated January 21, 2021 (the “Offer to Purchase”), and the related notice of guaranteed delivery for the Offers (together with the Offer to Purchase, the “Offer Documents”), which set forth the terms and conditions of the Offers.

As of the Expiration Time, according to information provided by Global Bondholder Services Corporation, the information agent and the tender agent for the Offers, a total of $111,936,000 aggregate principal amount of the 2023 Notes, $200,848,000 aggregate principal amount of the 4.200% 2024 Notes and $469,124,000 aggregate principal amount of the 3.875% 2024 Notes had been validly tendered and not validly withdrawn in the Offers, not including $1,205,000 aggregate principal amount of the 2023 Notes, $1,702,000 aggregate principal amount of the 4.200% 2024 Notes and $659,000 aggregate principal amount of the 3.875% 2024 Notes that have been validly tendered pursuant to the guaranteed delivery procedures described in the Offer Documents, which remain subject to the holders' performance of the delivery requirements under such procedures. The Offeror will accept for purchase all of the Securities that were validly tendered and not validly withdrawn and will pay the applicable Purchase Price (as defined below), plus accrued and unpaid interest from the most recent interest payment date to, but excluding, the Settlement Date (as defined below).

In accordance with the terms of the Offers, the Offeror will pay the applicable purchase price (the “Purchase Price”) for the Securities on January 28, 2021 (the “Settlement Date”). The Purchase Price to be paid for the 2023 Notes is $1,097.39, for the 4.200% 2024 Notes is $1,106.85 and for the 3.875% 2024 Notes is $1,112.20 for each $1000 principal amount of the respective Securities, in each case, plus accrued and unpaid interest on such Securities, if any, from the most recent interest payment date to, but excluding, the Settlement Date. With respect to Securities accepted for purchase that were tendered and are subsequently delivered in accordance with the guaranteed delivery procedures described in the Offer Documents, such tendering Holders will receive payment of the Purchase Price for such accepted Securities on February 1, 2021, plus accrued and unpaid interest thereon, if any, from the most recent interest payment date to, but excluding, the Settlement Date.

The Offeror expects to use the net cash proceeds from closed senior housing dispositions to pay the Purchase Price, plus accrued interest to, but excluding, the Settlement Date, for all Securities that the Offeror purchases pursuant to the Offers.

The Offeror expects to redeem any Securities that remain outstanding after the consummation of the Offers in accordance with the terms and conditions set forth in the applicable Indenture governing such Securities. However, the Offeror is not obligated to, and may choose not to, exercise its right to redeem any Securities.

The Offeror has retained Credit Suisse Securities (USA) LLC and Credit Agricole Securities (USA) Inc. to act as the dealer managers for the Offers. Requests for documents may be directed to Global Bondholder Services Corporation free of charge, by calling toll-free at (866) 470-4500 (bankers and brokers can call collect at (212) 430-3774).  Questions regarding the Offers may be directed to Credit Suisse Securities (USA) LLC toll free at (800) 820-1653 or collect at (212) 325-6340 or Credit Agricole Securities (USA) Inc. toll free at (866) 807-6030 or collect at (212) 261-7802.

Copies of the Offer Documents and the other relevant notices and documents are available at Global Bondholder Services Corporation's website at http://www.gbsc-usa.com/healthpeak/.

This press release is for informational purposes only and does not constitute an offer to purchase nor the solicitation of an offer to sell any Securities, or a notice of redemption under any of the Indentures governing the Securities.  The Offers are being made only pursuant to the Offer Documents.  The Offers are not being made to holders of Securities in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.  None of the Offeror, the Dealer Managers, the Information Agent, the Tender Agent, the Trustee or any of their respective affiliates makes any recommendation in connection with the Offers.  Please refer to the Offer to Purchase for a description of terms, conditions, disclaimers and other information applicable to the Offers.

About Healthpeak                                                                 

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns and develops high-quality real estate in the three private-pay healthcare asset classes of Life Science, Senior Housing and Medical Office, designed to provide stability through the inevitable industry cycles.  At Healthpeak, we pair our deep understanding of the healthcare real estate market with a strong vision for long-term growth.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results.  Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties include, but are not limited to, Healthpeak's ability to complete the Offers and reduce its outstanding debt within expected time-frames or at all, and other risks and uncertainties described in the Offer to Purchase and in its Securities and Exchange Commission filings.  Although Healthpeak believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, Healthpeak can give no assurance that the expectations will be attained or that any deviation will not be material.  All information in this release is as of the date of this release, and Healthpeak undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations, except as required by law.

Contact

Barbat Rodgers
Senior Director – Investor Relations
(949) 407-0400

Healthpeak Properties, Inc. Logo (PRNewsfoto/Healthpeak Properties, Inc.)

 

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SOURCE Healthpeak Properties, Inc.

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Thinking about buying stock in Sundial Growers, American Airlines, GameStop, Vir Biotechnology, or Carnival Corp?

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NEW YORK, Jan. 28, 2021 /PRNewswire/ — InvestorsObserver issues critical PriceWatch Alerts for SNDL, AAL, GME, VIR, and CCL.

To see how InvestorsObserver's proprietary scoring system rates these stocks, view the InvestorsObserver's PriceWatch Alert by selecting the corresponding link.

(Note: You may have to copy this link into your browser then press the [ENTER] key.)

InvestorsObserver's PriceWatch Alerts are based on our proprietary scoring methodology. Each stock is evaluated based on short-term technical, long-term technical and fundamental factors. Each of those scores is then combined into an overall score that determines a stock's overall suitability for investment.

 

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SOURCE InvestorsObserver

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First Reliance Bancshares Reports Fourth Quarter 2020 Results

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FLORENCE, S.C., Jan. 28, 2021 /PRNewswire/ — First Reliance Bancshares, Inc. (OTC:FSRL), the holding company for First Reliance Bank (collectively, “First Reliance” or the “Company”), today announced its financial results for the fourth quarter of 2020.

Fourth Quarter and Year Ended 2020 Highlights

  • Net income for the fourth quarter of 2020 was $1.4 million, or $0.17 per diluted share, compared to $0.6 million, or $0.07 per diluted share, for the fourth quarter of 2019, representing an increase of 131.9%.  Net income for the year ended December 31, 2020 was $10.6 million, or $1.32 per diluted share, compared to $4.1 million, or $0.51 per diluted share, for the year ended December 31, 2019, representing an increase of 159.6%.
  • Pre-tax, pre-provision earnings for the fourth quarter of 2020 were $2.2 million, up $0.9 million, or 72.3%, from the same period in 2019.  Pre-tax, pre-provision earnings for the year ended December 31, 2020 were $16.8 million, up $10.5 million, or 165.6%, from the same period in 2019.
  • Mortgage volume remained near record levels and resulted in mortgage income (net of mortgage servicing rights amortization and valuation adjustment) of $5.0 million during the fourth quarter of 2020, an increase of $4.3 million, or 647.2%, from the fourth quarter of 2019.
  • Mortgage servicing rights were $12.0 million at December 31, 2020, representing a value of 0.96% of total mortgage loans being serviced, compared to $11.0 million at December 31, 2019, representing a value of 1.15% of total mortgage loans being serviced.
  • Asset quality remained strong, with non-performing assets as a percentage of total assets decreasing to 0.21% at December 31, 2020 compared to 0.28% at December 31, 2019.
  • Cost of funds for the fourth quarter of 2020 decreased to 0.60% from 0.71% on a linked quarter basis and from 1.33% for the same period in 2019. 
  • The Company paid off $55.0 million in Federal Home Loan Bank advances at the end of December 2020, resulting in prepayment penalties of $0.3 million.  These advances had a weighted average interest rate of 0.86% and a weighted average remaining life of 1.7 years.  The advances and the associated cash balances negatively impacted net interest margin by approximately 34 basis points for the fourth quarter of 2020.
  • The Company elected to forego development of a previously planned branch location in Forest Acres, SC and wrote off $0.5 million in capitalized assets associated with the site during the fourth quarter.

“We are pleased to report that First Reliance closed out a record-setting year with another strong quarter and ended with net income of $10.6 million, or $1.32 per diluted common share, for the year, which represents the best year in the Company's 21-year history.  While this year has presented many challenges, we believe our resilience and our commitment to superior customer service positions the Company for continued growth in our markets,” Rick Saunders, Chief Executive Officer, said.  “I would like to thank all of our team members, especially those on the frontlines, for their tireless work in meeting the needs of our customers and for their commitment to our core values during this challenging and tumultuous time.”

Mr. Saunders continued, “Given the strong performance and income during the year, the Company has taken the opportunity to fortify our balance sheet, as reflected by increased capital, liquidity, and loan loss reserve levels at the end of the year.  We have been intentional about our current balance sheet mix, which provides protection from the potential economic fallout from COVID-19 while also positioning us to deploy cash strategically as those risks begin to subside.  With additional economic stimulus as well as positive developments in vaccine efficacy, we intend to begin executing our strategy of funding high-quality interest-earning assets in the coming quarters.  We will also continue to focus on countering the potential negative implications of COVID-19 by diversifying our revenue streams, growing our core deposit base, and eliminating unnecessary expenses.”

Mr. Saunders concluded, “While this year has been challenging, it has also brought about immense positive change to our organization.  We've focused on bringing in highly qualified personnel across all areas of the Company, including executive management, lending and retail, finance, operations, and information technology.  We believe this team positions us to take on the inevitable challenges ahead and to create a very bright future for our organization.”

COVID-19 Update

The fourth quarter brought about significant new developments in the fight against COVID-19.  Positive trends in vaccine efficacy as well as additional economic stimulus provides defense against the worst economic outcomes from the pandemic.  The Company has already begun taking applications for the second round of Paycheck Protection Program (PPP) loans and we stand ready to continue providing assistance to our customers.  Our branch locations are back open to better serve our customers and we've taken the necessary precautions to ensure the safety of those customers as well as our team members.  As of December 31, 2020, total loan deferrals had fallen to $7.1 million on four loans, all on their second deferral, totaling 1.5% of total loans receivable. 

Financial Summary

Three Months Ended

Twelve Months Ended

($ in thousands, except per share data)

Dec 31
2020

Sept 30
2020

June 30
2020

Mar 31
2020

Dec 31
2019

Dec 31
2020

Dec 31
2019

Earnings:

Net income available to common shareholders

$     1,389

$     4,468

$     3,901

$          858

$          599

$   10,616

$      4,089

Earnings per common share, diluted

0.17

0.56

0.49

0.11

0.07

1.32

0.51

Total revenue(1)

10,858

14,820

13,241

7,542

7,502

46,461

31,600

Net interest margin

3.27%

3.86%

3.55%

4.09%

3.96%

3.69%

3.97%

Return on average assets(2)

0.72%

2.31%

2.12%

0.54%

0.37%

1.46%

0.66%

Return on average equity(2)

8.08%

27.73%

26.20%

5.89%

4.20%

16.91%

7.46%

Efficiency ratio(3)

80.05%

54.28%

54.40%

81.15%

84.09%

63.83%

79.98%

Footnotes to table located at the end of this release.

 

As of

($ in thousands, except per share data)

Dec 31
2020

Sept 30
2020

June 30
2020

Mar 31
2020

Dec 31
2019

Balance Sheet:

Total assets

$       710,168

$       781,655

$       762,647

$       660,886

$       661,612

Total loans receivable

477,968

478,745

512,384

480,573

480,183

Total deposits

641,439

595,767

582,361

506,225

505,088

Total transaction deposits(4)to total deposits

48.51%

47.30%

49.62%

49.06%

44.84%

Loans to deposits

80.47%

80.36%

87.98%

94.93%

95.07%

Bank Capital Ratios:

Total risk-based capital ratio

15.67%

14.75%

13.31%

12.45%

11.54%

Tier 1 risk-based capital ratio

14.52%

13.72%

12.48%

11.75%

10.88%

Tier 1 leverage ratio

10.31%

9.96%

9.68%

10.29%

9.23%

Common equity tier 1 capital ratio

14.52%

13.72%

12.48%

11.75%

10.88%

Asset Quality Ratios:

Nonperforming assets as a percentage of
   total assets

0.21%

0.19%

0.21%

0.26%

0.28%

Allowance for loan losses as a percentage of
   total loans receivable

1.29%

1.20%

0.92%

0.81%

0.74%

Footnotes to table located at the end of this release.

 

CONDENSED CONSOLIDATED INCOME STATEMENTS – Unaudited

Three Months Ended

Twelve Months Ended

Dec 31

Sept 30

June 30

Mar 31

Dec 31

December 31

(in thousands, except per share data)

2020

2020

2020

2020

2019

2020

2019

Interest income

Loans

$        6,156

$        7,403

$        6,650

$        6,568

$        6,760

$     26,777

$     26,190

Investment securities

231

218

299

323

327

1,071

1,335

Other interest income

75

67

41

90

91

273

329

Total interest income

6,462

7,688

6,990

6,981

7,178

28,121

27,854

Interest expense

Deposits

376

519

652

828

1,043

2,375

4,635

Other interest expense

388

400

371

336

397

1,495

1,322

Total interest expense

764

919

1,023

1,164

1,440

3,870

5,957

Net interest income

5,698

6,769

5,967

5,817

5,738

24,251

21,897

Provision for loan losses

350

1,000

1,178

380

470

2,908

984

Net interest income after provision for loan
   losses

5,348

5,769

4,789

5,437

5,268

21,343

20,913

Noninterest income

Mortgage banking income

5,916

8,270

8,062

4,274

1,798

26,522

6,901

Mortgage servicing rights amortization and
   valuation adjustment

(902)

(1,155)

(1,429)

(3,512)

(1,127)

(6,998)

(1,307)

Service fees on deposit accounts

315

290

242

463

447

1,310

1,682

Debit card and other service charges,
   commissions, and fees

427

426

429

315

408

1,597

1,548

Income from bank owned life insurance

101

103

102

103

96

409

386

Gain (loss) on sale of securities, net

8

(211)

(9)

1

(212)

37

Loss on extinguishment of debt

(287)

(287)

Loss on disposal of fixed assets

(528)

(528)

Other income

110

117

79

91

141

397

456

Total noninterest income

5,160

8,051

7,274

1,725

1,764

22,210

9,703

Noninterest expense

Compensation and benefits

5,359

4,892

4,395

3,583

3,718

18,229

15,369

Occupancy

641

628

619

612

603

2,500

2,377

Furniture and equipment

616

572

585

537

435

2,310

1,822

Electronic data processing

241

231

200

194

190

866

926

Professional fees

400

230

329

267

377

1,226

1,124

Marketing

155

122

56

77

84

410

304

Other

1,280

1,288

771

778

838

4,117

3,352

Total noninterest expense

8,692

7,963

6,955

6,048

6,245

29,658

25,274

Income before provision for income taxes

1,816

5,857

5,108

1,114

787

13,895

5,342

Income tax expense

427

1,389

1,207

256

188

3,279

1,253

Net income available to common shareholders

$        1,389

$        4,468

$        3,901

$             858

$             599

$     10,616

$        4,089

Weighted average common shares – basic

7,931

7,929

7,915

7,901

7,903

7,919

7,938

Weighted average common shares – diluted

8,089

8,015

7,998

8,014

8,047

8,038

8,062

Basic income per common share

$           0.18

$           0.56

$           0.49

$           0.11

$           0.08

$           1.34

$           0.52

Diluted income per common share

$           0.17

$           0.56

$           0.49

$           0.11

$           0.07

$           1.32

$           0.51

Net income for the three months ended December 31, 2020 was $1.4 million, or $0.17 per diluted common share, compared to $0.6 million, or $0.07 per diluted common share, for the three months ended December 31, 2019.  Net income for the twelve months ended December 31, 2020 totaled $10.6 million, or $1.32 per diluted common share, compared to $4.1 million, or $0.51 per diluted common share for the nine months ended December 31, 2019.

Noninterest income for the three months ended December 31, 2020 was $5.2 million, a $3.4 million increase from $1.8 million for the same period in 2019.  Noninterest income is largely driven by the Company's mortgage banking division, which produced income of $5.0 million on $172 million in mortgage volume during the three months ended December 31, 2020.  That represents an increase of $4.3 million in income from the same period in 2019.  Noninterest income for the three months ended December 31, 2020 was also affected by the Company's decision to pay off Federal Home Loan Bank advances and dispose of previously capitalized assets related to a planned branch site, resulting in one-time losses of $0.3 million and $0.5 million, respectively.

Noninterest expense increased by $2.4 million or 39.2%, for the three months ended December 31, 2020 compared to the same period in 2019.  The increase in noninterest expense is largely driven by an increase of $1.6 million in compensation and benefits.  The increase in compensation and benefits is driven by an increase in mortgage incentives as well as the addition of personnel throughout the year.

NET INTEREST INCOME AND MARGIN – Unaudited

For the Three Months Ended

December 31, 2020

December 31, 2019

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in thousands)

Balance

Expense

Rate

Balance

Expense

Rate

Assets

Interest-earning assets

Federal funds sold and interest-bearing deposits

$   134,396

$                 33

0.10%

$       19,378

$              71

1.46%

Investment securities

34,175

231

2.69%

46,443

327

2.81%

Nonmarketable equity securities

3,261

42

5.01%

2,237

20

3.65%

Loans held for sale

48,984

367

3.01%

36,852

363

3.94%

Loans

476,253

5,789

4.86%

474,153

6,397

5.40%

Total interest-earning assets

697,069

6,462

3.71%

579,063

7,178

4.96%

Allowance for loan losses

(6,111)

(2,528)

Noninterest-earning assets

77,828

72,772

Total assets

$   768,786

$    649,307

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts

$   115,304

$                 13

0.04%

$       86,536

$              10

0.05%

Savings & money market

160,555

77

0.20%

121,712

133

0.43%

Time deposits

146,406

286

0.79%

170,875

900

2.11%

Total interest-bearing deposits

422,265

376

0.36%

379,123

1,043

1.10%

FHLB advances and other borrowings

67,242

164

0.96%

38,872

209

2.17%

Subordinated debentures

20,757

224

4.28%

15,310

188

4.91%

Total interest-bearing liabilities

510,264

764

0.60%

433,305

1,440

1.33%

Noninterest bearing deposits

179,037

131,281

Other Liabilities

10,720

27,654

Shareholders' equity

68,765

57,067

Total liabilities and shareholders' equity

$   768,786

$    649,307

Net interest income (tax equivalent) / interest
  rate spread

$         5,698

3.11%

$       5,738

3.63%

Net Interest Margin

3.27%

3.96%

 

For the Twelve Months Ended

December 31, 2020

December 31, 2019

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in thousands)

Balance

Expense

Rate

Balance

Expense

Rate

Assets

Interest-earning assets

Federal funds sold and interest-bearing deposits

$      78,452

$              126

0.16%

$         14,280

$            261

1.83%

Investment securities

39,237

1,071

2.73%

47,992

1,335

2.78%

Nonmarketable equity securities

3,422

147

4.29%

1,441

68

4.73%

Loans held for sale

46,546

1,485

3.19%

25,479

1,019

4.00%

Loans

489,218

25,292

5.17%

462,881

25,171

5.44%

Total interest-earning assets

656,875

28,121

4.28%

552,073

27,854

5.05%

Allowance for loan losses

(4,707)

(2,788)

Noninterest-earning assets

76,419

72,394

Total assets

$   728,587

$      621,679

Liabilities and Shareholders' Equity

Interest-bearing liabilities

NOW accounts

$   105,621

$                 47

0.04%

$         82,455

$               37

0.05%

Savings & money market

138,210

379

0.27%

118,984

525

0.44%

Time deposits

151,918

1,949

1.28%

187,177

4,073

2.18%

Total interest-bearing deposits

395,749

2,375

0.60%

388,616

4,635

1.19%

FHLB advances and other borrowings

71,870

681

0.95%

19,889

541

2.72%

Subordinated debentures

18,382

814

4.43%

15,310

781

5.11%

Total interest-bearing liabilities

486,001

3,870

0.80%

423,815

5,957

1.41%

Noninterest bearing deposits

168,859

119,712

Other Liabilities

10,941

23,346

Shareholders' equity

62,786

54,806

     Total liabilities and shareholders' equity

$   728,587

$      621,679

Net interest income (tax equivalent) / interest
  rate spread

$      24,251

3.48%

$    21,897

3.64%

Net Interest Margin

3.69%

3.97%

Net interest income decreased $40 thousand, or 0.7%, to $5.7 million for the three months ended December 31, 2020 compared to the three months ended December 31, 2019.  The minimal change in net interest income over the period was caused by a decrease in both the yield on interest-earning assets and the cost of interest-bearing liabilities.   Yield on interest-earning assets decreased to 3.71% for the three months ended December 31, 2020 from 4.96% for three months ended December 31, 2019.  The decrease was mainly driven by a change in balance sheet mix, which was strategically positioned to be cash-heavy during the quarter.  Yield was also negatively affected to a lesser degree by decreases in the federal funds target rate.  The Company continues to reduce its cost of funds, which decreased to 0.60% for the three months ended December 31, 2020 from 1.33% for the same period in 2019.  Transaction deposits increased by $76.5 million, to $294.3 million at December 31, 2020 from $217.8 million at December 31, 2019 and were aided in part by deposit growth as a result of participating in the PPP. 

Net interest income increased $2.4 million, or 10.8%, to $24.3 million for the twelve months ended December 31, 2020 compared to $21.9 for the twelve months ended December 31, 2019.  The increase is mainly driven by lower cost of funds, which decreased to 0.80% for the twelve months ended December 31, 2020 compared to 1.41% for the twelve months ended December 31, 2019.

CONDENSED CONSOLIDATED BALANCE SHEETS – Unaudited

As of

Dec 31

Sept 30

Jun 30

March 31

Dec 31

($ in thousands, except per share data)

2020

2020

2020

2020

2019

Assets

Cash and cash equivalents:

Cash and due from banks

$                 5,521

$                 5,133

$                 4,952

$              16,869

$              12,945

Interest-bearing deposits with banks

93,167

134,592

78,299

18,667

27,395

Total cash and cash equivalents

98,688

139,725

83,251

35,536

40,340

Time deposits in other banks

256

256

255

255

254

Investment securities:

Investment securities available for sale

32,759

35,567

28,237

34,842

35,715

Investment securities held to maturity

9,318

9,767

10,417

Other investments

1,076

3,839

4,264

2,989

2,423

Total investment securities

33,835

39,406

41,819

47,598

48,555

Mortgage loans held for sale

35,642

57,853

57,329

34,042

27,901

Loans receivable:

Loans

477,968

478,745

512,384

480,573

480,183

Less allowance for loan losses

(6,173)

(5,721)

(4,715)

(3,877)

(3,547)

Loans receivable, net

471,795

473,024

507,669

476,696

476,636

Property and equipment, net

18,491

20,548

20,523

20,528

19,967

Mortgage servicing rights

12,021

11,000

9,698

8,421

11,023

Bank owned life insurance

18,102

18,001

17,898

17,796

17,692

Deferred income taxes

3,452

3,872

5,068

6,156

6,581

Other assets

17,886

17,970

19,137

13,858

12,663

Total assets

710,168

781,655

762,647

660,886

661,612

Liabilities

Deposits

$           594,000

$           595,767

$           582,361

$           506,225

$           505,088

Federal Home Loan Bank advances

10,000

75,000

85,000

55,000

43,300

Federal funds and repurchase agreements

5,523

12,591

2,464

16,530

31,137

Subordinated debentures

10,459

10,427

10,358

4,835

4,881

Junior subordinated debentures

10,310

10,310

10,310

10,310

10,310

Other liabilities

11,147

10,178

9,814

9,971

9,811

Total liabilities

641,439

714,273

700,307

602,871

604,527

Shareholders' equity

Preferred stock – Series D non-cumulative, no par
  value

1

1

1

1

1

Common Stock – $.01 par value; 20,000,000 shares
  authorized

82

81

81

81

80

Non-Voting Common Stock, $.01 par value;
  430,000 shares authorized

4

4

4

4

4

Treasury stock, at cost

(1,680)

(1,488)

(1,478)

(1,402)

(1,283)

Nonvested restricted stock

(1,487)

(1,577)

(1,748)

(1,757)

(1,254)

Additional paid-in capital

51,972

51,824

51,822

51,652

51,137

Accumulated other comprehensive income

1,128

1,217

806

606

308

Retained earnings

18,709

17,320

12,852

8,830

8,092

Total shareholders' equity

68,729

67,382

62,340

58,015

57,085

Total liabilities and shareholders' equity

$           710,168

$           781,655

$           762,647

$           660,886

$           661,612

 

COMMON STOCK SUMMARY – Unaudited

As of

Dec 31

Sept 30

Jun 30

Mar 31

Dec 31

(shares in thousands)

2020

2020

2020

2020

2019

Voting common shares outstanding

8,154

8,129

8,133

8,103

8,034

Non-voting common shares outstanding

410

410

410

410

410

Treasury shares outstanding

(234)

(202)

(200)

(187)

(184)

  Total common shares outstanding

8,330

8,337

8,343

8,326

8,260

Tangible book value per common share(5)

$                     8.12

$                     7.95

$                     7.34

$                     6.83

$                     6.76

Stock price:

  High

$                     7.80

$                     6.05

$                     5.50

$                     7.82

$                     7.90

  Low

$                     5.55

$                     4.85

$                     4.93

$                     5.50

$                     7.60

  Period end

$                     7.75

$                     6.05

$                     5.07

$                     5.50

$                     7.82

Footnotes to table located at the end of this release.

 

ASSET QUALITY MEASURES – Unaudited

Ending Balance

(dollars in thousands)

Dec 31
2020

Sept 30
2020

June 30
2020

Mar 31
2020

Dec 31
2019

Nonperforming Assets

Commercial

Owner occupied RE

$                     394

$                     404

$                     413

$                       416

$                   425

Non-owner occupied RE

Construction

Commercial business

135

12

39

Consumer

Real estate

461

346

345

356

411

Home equity

Construction

Other

242

299

206

246

256

Nonaccruing troubled debt restructurings

270

291

318

298

344

Total nonaccrual loans

$                1,367

$                1,340

$                1,417

$                  1,328

$                   1,475

Other real estate owned

164

164

209

392

347

Total nonperforming assets

$                1,531

$                1,504

$                1,626

$                  1,720

$                   1,822

Nonperforming assets as a percentage of:

Total assets

0.21%

0.19%

0.21%

0.26%

0.28%

Total loans receivable

0.32%

0.31%

0.32%

0.36%

0.38%

Accruing troubled debt restructurings

$                1,584

$                2,508

$                2,620

$                  3,502

$                   3,584

Quarter Ended

(dollars in thousands)

Dec 31
2020

Sept 30
2020

June 30
2020

March 31
2020

Dec 31
2019

Allowance for Loan Losses

Balance, beginning of period

$                5,721

$                4,715

$                3,877

$                  3,547

$                   3,251

Loans charged-off

43

76

452

168

222

Recoveries of loans previously charged-off

145

82

112

118

48

Net charge-offs (recoveries)

(102)

(6)

340

50

174

Provision for loan losses

350

1,000

1,178

380

470

Balance, end of period

$                6,173

$                5,721

$                4,715

$                  3,877

$                   3,547

Allowance for loan losses to gross loans receivable

1.29%

1.20%

0.92%

0.81%

0.74%

Allowance for loan losses to nonaccrual loans

451.57%

426.94%

332.75%

291.94%

240.47%

Our asset quality continued to be strong through December 31, 2020, with nonperforming assets decreasing to $1.5 million at December 31, 2020 from $1.8 million at December 31, 2019.  The ratio of nonperforming assets to total assets declined to 0.21% at December 31, 2020, a decrease of 7 basis points compared to December 31, 2019.  Other real estate owned and repossessed assets remain nominal.  The allowance for loan losses as a percentage of total loans receivable increased to 1.29% at December 31, 2020, compared to 0.74% at December 31, 2019, primarily due to provisioning associated with the potential economic impact of the COVID-19 pandemic. The Company had net recoveries of $102 thousand for the three months ended December 31, 2020 compared to net charge-offs of $174 thousand for the three months ended December 31, 2019. “While we have not seen increased delinquencies and do not anticipate a significant impact to our asset quality, we believe it is prudent to reflect the COVID-19 pandemic in our allowance models.  During Q4 2020, we made provisions for loan losses totaling $0.4 million, which brings our total provisions for 2020 to $2.9 million, an increase of $1.9 million compared to 2019.  We are actively performing stress tests on our loan portfolio, monitoring the political and regulatory landscape, and monitoring COVID-19 hotspots and the impact it may have on the markets we serve.  The Company has minimal exposure to those industries that may have an elevated exposure to COVID-19,” said Mr. Saunders.  

LOAN COMPOSITION – Unaudited

Quarter Ended

Dec 31

Sept 30

June 30

Mar 31

Dec 31

(dollars in thousands)

2020

2020

2020

2020

2019

Commercial

Owner occupied RE

$             106,721

$             104,173

$             113,205

$             115,711

$             116,244

Non-owner occupied RE

88,560

79,838

70,748

69,474

59,287

Construction

29,099

35,579

35,029

29,523

33,196

Business

57,512

63,163

62,464

63,522

61,129

PPP

30,211

Total commercial loans

281,892

282,753

311,657

278,230

269,856

Consumer

Real Estate

96,458

97,904

99,565

97,465

99,394

Home equity

19,456

20,244

21,895

21,362

21,987

Construction

13,892

12,831

11,642

9,617

8,205

Other

66,270

65,013

67,625

73,899

80,741

Total consumer loans

196,076

195,992

200,727

202,343

210,327

Total loans, net of deferred fees

477,968

478,745

512,384

480,573

480,183

Less allowance for loan losses

6,173

5,721

4,715

3,877

3,547

Total loans, net

$             471,795

$             473,024

$             507,669

$             476,696

$             476,636

 

DEPOSIT COMPOSITION – Unaudited

Quarter Ended

Dec 31

Sept 30

June 30

Mar 31 

Dec 31

(dollars in thousands)

2020

2020

2020

2020

2019

Non-interest bearing

$        167,274

$        173,628

$        185,208

$        144,359

$        137,312

Interest bearing:

NOW accounts

120,891

108,152

103,732

104,003

89,169

Money market accounts

119,716

113,203

101,083

94,778

94,742

Savings

46,688

41,549

34,392

26,270

25,730

Time, less than $250,000

105,327

122,139

120,782

104,841

121,818

     Time, $250,000 and over

34,104

37,096

37,164

31,974

36,317

Total Deposits

$        594,000

$        595,767

$        582,361

$        506,225

$        505,088

 

Footnotes to tables:

(1)

Total revenue is the sum of net interest income and noninterest income.

(2)

Annualized for the respective three-month period.

(3)

Noninterest expense divided by the sum of net interest income and noninterest income annualized for respective three-month period.

(4)

Includes noninterest-bearing and interest-bearing 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 $710 million.  The Company employs more than 170 professionals and has locations throughout South Carolina and central North 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 93% customer satisfaction rating well above the bank industry average of 81%.  First Reliance is also one of three companies throughout South Carolina to receive the Best Places To Work in South Carolina award all 15 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.  In addition to offering a full range of personalized community banking products and services for individuals, small businesses, and corporations, First Reliance offers two unique community-customers programs, which include:  Hometown Heroes, a package of benefits for those serving our communities and Check N Save, an outreach program for the unbanked or under-banked.  We also offer a full suite of digital banking services, a Customer Service Guaranty, a Mortgage Service Guaranty, and are open on most traditional holidays.

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 loan losses; (3) the rate of delinquencies and amounts of charge-offs, the level of allowance for loan 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 Covid-19 or 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 Haile
SEVP & Chief Financial Officer
(843) 656-5000
[email protected]

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/first-reliance-bancshares-reports-fourth-quarter-2020-results-301217209.html

SOURCE First Reliance Bancshares, Inc.

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