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First Reliance Bancshares returns to preferred stock, trust preferred securities payment of dividends.

M2 EQUITYBITES-June 19, 2015-First Reliance Bancshares returns to preferred stock, trust preferred securities payment of dividends

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First Reliance Bancshares, Inc. (OTC: FSRL), the parent holding company of First Reliance Bank, said following deferral on payment of dividends it has it has returned to cash payment of dividends on the company's preferred stock originally issued to the United States Treasury as part of the Troubled Asset Relief Program (TARP) and is now held by private investors, and interest on the company's outstanding trust preferred securities.

First Reliance president and chief executive officer Rick Saunders said, "We are current on all dividend payments to holders of our TARP preferred stock and interest payments on our trust preferred securities. This is truly a sign of strength for our company and a tangible vote of confidence from our regulators. We believe this event validates our progress toward our strategic goals over the last year. We have posted five consecutive quarters of profitability, we have recaptured half of our deferred tax asset valuation allowance, we have made significant improvements in asset quality, and we are well-positioned for success going forward."

Deferred dividends on the TARP preferred stock totaled USD4.2 million. Payments of the deferred dividends were made in May 2015. Deferred interest payments on outstanding trust preferred securities totaled USD876,657.

The company had continued to accrue the interest payable on the trust preferred securities, so payment of the deferred amount had no effect on current earnings and capital.

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Publication:M2 EquityBites (EQB)
Date:Jun 19, 2015
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