First Reliance Bancshares, Inc. (OTCQX:FSRL) released its third-quarter 2026 financial results on October 28, 2026, reporting net income of $2.7 million and announcing that its merger with Colony Bank is on track to close November 1, 2026.

Key Highlights

  • Net income steady year-over-year: Net income for Q3 2026 was $2.738 million, or $0.33 per diluted share, matching $2.714 million, or $0.33 per diluted share, in Q3 2025.
  • Nine-month earnings growth: Net income for the nine months ended September 30, 2026 totaled $8.981 million, or $1.10 per diluted share, up from $7.980 million, or $0.96 per diluted share, for the same period in 2025.
  • Book value per share increase: Book value per share rose $0.98, or 8.6%, to $12.40 at September 30, 2026, from $11.42 at September 30, 2025.
  • Nonperforming assets spike: Nonperforming assets increased by $5.9 million to $6.6 million, or 0.59% of total assets, at September 30, 2026, primarily due to one loan totaling $5.5 million.
  • Colony Bank merger closing imminent: Regulatory and shareholder approvals have been received, with closing scheduled for November 1, 2026, and systems conversion scheduled for June 2027.
  • Total deposits: Total deposits were $922.4 million at September 30, 2026, an increase of $2.1 million from $920.3 million at June 30, 2026.

First Reliance Bancshares Q3 2026: Earnings, Asset Quality, and Pending Colony Bank Merger

According to the filing, First Reliance Bancshares reported net interest income of $9.9 million for Q3 2026, up $430 thousand, or 4.6%, from the same quarter in 2025, and up $12 thousand, or 0.12%, from Q2 2026. The net interest margin decreased to 3.73% in Q3 2026 from 3.74% in Q2 2026, though it increased 7 basis points compared to Q3 2025. Operating earnings (Non-GAAP) were $2.927 million, or $0.36 per diluted share, for Q3 2026, compared to $2.714 million, or $0.33 per diluted share, for Q3 2025.

The filing disclosed that total loans held for investment decreased $8.4 million, or 4.1% annualized, to $812.3 million at September 30, 2026, from $820.7 million at June 30, 2026, while total loan growth for 2026 totaled $32.4 million, or 5.5% annualized. Nonperforming assets rose sharply, increasing by $5.9 million to $6.6 million, or 0.59% of total assets. The company disclosed that the increase was primarily due to one loan totaling $5.5 million, and that this loan "was sufficiently collateralized and there was no specific allowance for credit loss recorded as of September 30, 2026." The allowance for credit losses as a percentage of total loans receivable stood at 1.12% at September 30, 2026.

Regarding the pending merger, the filing stated that bank regulatory approvals and shareholder approvals from both companies have been received for the partnership with Colony Bank (CBAN), headquartered in Fitzgerald, Georgia. Closing is scheduled for November 1, 2026, with systems conversion scheduled for June 2027. Based on each company's total assets at September 30, 2026, the filing stated the combined company will have nearly $5.0 billion in total assets. The total risk-based capital ratio at the bank level stood at 14.75% at September 30, 2026, up from 13.58% at September 30, 2025.

What Was Disclosed

First Reliance Bancshares reported Q3 2026 net income of $2.738 million ($0.33 per diluted share), steady year-over-year, alongside details on rising nonperforming assets, loan and deposit balances, capital ratios, and the imminent closing of its merger with Colony Bank on November 1, 2026.