First Reliance Makes Partial Redemption of TARP Preferred

FLORENCE, S.C., July 12, 2016

"We are pleased to be in a position to replace the securities originally issued to the U.S. Treasury under the TARP Capital Purchase Program with lower cost financing alternatives," said Rick Saunders, President and CEO.

Following completion of the redemptions, the capital ratios of First Reliance Bank are expected to continue to far exceed regulatory capital standards to be categorized as well-capitalized and the bank will have sufficient capital to support future balance sheet growth.  Redemption of the TARP securities will reduce the Company's after-tax interest expense and is expected to positively impact earnings per share on an annual basis by $0.21 per share, or approximately $977,000 additional net income to common shareholders. 

"Strategically, we continue to be focused on growing our market presence in the Coastal and Midlands regions of South Carolina, diversifying our revenue sources growing our loan portfolio with 1-4 family mortgage and consumer loans, funding this growth with low cost core deposits, increasing non-interest income and improving our efficiency," said Rick Saunders, President and CEO.  "We also continue to focus on delivering profits that are consistent and sustainable for our shareholders."

ABOUT FIRST RELIANCE BANCSHARES, INC.

First Reliance Bancshares, Inc. is the holding company for First Reliance Bank.  The Bank was founded in 1999, employs approximately 120 highly-talented associates and serves the Columbia, Lexington, Charleston, Mount Pleasant and Florence markets in South Carolina.  First Reliance Bank offers several unique customer programs which include a Hometown Heroes package of benefits to serve those who are serving our communities, Check 'N Save, a community outreach program for the unbanked or under-banked, a Moms First program, and an iMatter program targeted to young people. The Bank also offers a Customer Service Guaranty, a Mortgage Service Guaranty, FREE Coin Machines for customers to use, Mobile Banking, and is open on most traditional bank holidays.  Its commitment to making customers' lives better and the idea that "There's More to Banking Than Money" has earned the Bank a customer satisfaction rating of 95% (2016 Survey Monkey.)

The common stock of First Reliance Bancshares, Inc. is traded under the symbol FSRL.OB.  Additional information about the Company is available on the Company's web site at www.firstreliance.com.