First Reliance Bancshares (FSRL) AI Stock Analysis

• Market Cap: $109.35M
• Dividend Yield: N/A
• Average Volume (3M): 5.87K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.09
• Revenue Growth: 12.83%
• EPS Growth: 53.09%
• Country: US
• Employees: 170
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.35
• Shares Outstanding: 8,130,000
• 10 Day Avg. Volume: 10,118
• 30 Day Avg. Volume: 5,867
• PEG Ratio: 0.47
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.92
• P/FCF Ratio: -7.93
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 16.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $12.50 ▼(-1.73% Downside)

The score is driven primarily by mixed financial performance—stronger balance-sheet leverage trends and stable profitability are offset by a sharp 2024 revenue decline and negative operating/free cash flow. Technical indicators are largely neutral, and valuation looks reasonable based on the moderate P/E.

Positive Factors

Profit Margin Improvement

The improvement in net profit margin indicates enhanced operational efficiency and cost management, contributing to better profitability.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term financial stability.

Conservative Leverage

A low debt-to-equity ratio indicates prudent financial management, reducing risk and enhancing the company's ability to invest in growth.

Negative Factors

Incomplete Cash Flow Data

Incomplete cash flow data hinders accurate assessment of liquidity and cash management, potentially impacting financial planning and stability.

Equity Ratio Decline

A declining equity ratio suggests a reduction in equity as a proportion of total assets, which may affect the company's financial resilience.

Revenue Below 2020 Levels

Revenue not recovering to 2020 levels indicates potential challenges in regaining market share or adapting to industry changes.

First Reliance Bancshares Business Overview & Revenue Model

Company Description

First Reliance Bancshares, Inc. operates as the bank holding company for First Reliance Bank that provides banking products and services in the United States. The company offers checking, savings, money market, and individual retirement accounts; certificates of deposit; and insurance products. It also provides personal loans, including unsecured, auto, real estate, overdraft protection, and other loans, as well as home equity line of credit; business loans, such as business installment, commercial real estate, and overdraft protection loans, as well as business lines of credit; mortgage loans; and debit and credit card services. In addition, the company offers treasury; indirect dealer; online, mobile, and business banking; and other services. First Reliance Bancshares, Inc. was founded in 1999 and is based in Florence, South Carolina.

How the Company Makes Money

First Reliance Bancshares makes money through various revenue streams primarily related to its banking operations. The company earns interest income from loans and mortgages extended to individual and business customers. Additionally, it generates revenue from service fees associated with account maintenance, transaction services, and wealth management offerings. Deposits from customers provide a low-cost funding source, which supports its lending activities. The company's profitability is further influenced by partnerships with financial service providers and its ability to manage interest rate margins effectively.

First Reliance Bancshares Financial Statement Overview

Summary

Mixed fundamentals: profitability has been fairly steady and leverage improved meaningfully (lower debt-to-equity, higher equity), but revenue contracted sharply in 2024 and operating/free cash flow swung negative, weakening overall financial quality.

Income Statement

Profitability has been fairly steady: net profit margin stayed in the low-to-mid teens (about 13%–21%) from 2019–2024, with net income holding around ~$4.1M–$10.6M. However, the top line is volatile and trending weaker recently—revenue fell ~26% in 2024 after a small decline in 2023, and is well below the 2020 peak. Overall, earnings resilience is a positive, but the recent revenue contraction and choppy growth profile temper the score.

Balance Sheet

Leverage improved materially versus earlier years: debt-to-equity declined to ~0.33 in 2024 from higher levels in 2019–2022 (including a notably elevated ~1.67 in 2019 and ~1.09 in 2022). Equity also expanded (to ~$77.8M in 2024 from ~$57.1M in 2019), supporting the balance sheet as assets grew to ~$1.07B. Returns on equity are moderate (roughly ~6%–15% historically, ~7.6% in 2024), suggesting decent but not exceptional profitability on the capital base.

Cash Flow

Cash generation is the weakest area due to high volatility and a sharp recent deterioration: operating cash flow turned negative in 2024 (about -$8.9M) with negative free cash flow (about -$9.5M), after positive results in 2020–2023 (and also negative operating cash flow in 2019). While prior-year free cash flow was healthy (e.g., positive in 2021–2023), the swing to negative cash flow in the latest period raises questions about near-term cash earnings quality and consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.80M	39.26M	51.91M	42.16M	40.86M	51.15M
Gross Profit	49.08M	39.26M	36.49M	39.00M	38.84M	47.28M
EBITDA	9.00M	0.00	7.01M	8.78M	7.46M	14.85M
Net Income	8.01M	5.92M	4.60M	5.93M	5.28M	10.62M
Balance Sheet
Total Assets	1.10B	1.07B	975.77M	938.64M	912.18M	710.17M
Cash, Cash Equivalents and Short-Term Investments	0.00	47.23M	21.94M	34.06M	150.12M	98.94M
Total Debt	19.77M	25.75M	36.62M	69.26M	53.81M	36.23M
Total Liabilities	1.02B	989.35M	904.37M	875.34M	841.38M	641.44M
Stockholders Equity	85.90M	77.76M	71.40M	63.30M	70.80M	68.73M
Cash Flow
Free Cash Flow	0.00	-9.49M	8.88M	24.20M	34.36M	33.32M
Operating Cash Flow	0.00	-8.93M	9.51M	25.35M	39.54M	34.45M
Investing Cash Flow	0.00	-52.10M	-49.06M	-175.44M	-183.61M	-11.75M
Financing Cash Flow	0.00	86.31M	27.69M	33.77M	195.50M	35.65M

First Reliance Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSRL, the sentiment is Positive. The current price of 12.72 is below the 20-day moving average (MA) of 12.97, below the 50-day MA of 12.74, and above the 200-day MA of 10.58, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 76.29 is Negative, neither overbought nor oversold. The STOCH value of 96.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSRL.

First Reliance Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUBN	69 Neutral	$86.85M	11.98	8.22%	4.16%	24.17%	739.42%
UBCP	69 Neutral	$80.26M	10.70	10.91%	6.51%	6.31%	-5.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IROQ	59 Neutral	$90.89M	16.97	6.20%	1.48%	1.93%	157.35%
FSRL	55 Neutral	$109.35M	10.51	10.47%	―	12.83%	53.09%
SSBI	45 Neutral	$91.34M	13.60	-1.41%	―	-0.81%	-129.22%