Reliance Bank Announces Earnings for Six-Month Period Ending June 30, 2013

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August 1,2013 – Thomas H. Brouster, Sr., Chairman of the Board of Reliance Bank, the wholly owned subsidiary of Reliance Bancshares, Inc.(OTCPK: RLBS), announced today earnings for Reliance Bank of $2.7 million for the six-month period ending June 30, 2013.

This represents the best six-month earnings period in the history of Reliance Bank. For detailed information on the Bank’s financial performance in the second quarter, please refer to our Call Report at:

Commenting on the Reliance Bank’s improved performance, Mr. Brouster said, “We are extremely pleased that the Bank’s return to profitability has extended into the second quarter. We are seeing significant growth across all of our business segments, and have developed a large pipeline of new business, which we expect to contribute to continued earnings improvement during the second-half of the year.”

The positive trend in earnings over the past six months stands in stark contrast to the losses the company recorded from 2009-2011.

Reliance Bank

(Amounts in thousands)

6 mos. 2013

6 mos. 2012*

6 mos. 2011*

6 mos. 2010*

6 mos. 2009*

Net Income (loss):








*Missouri and Florida Banks combined

As a result of successful new business efforts in the second quarter, total assets as of June 30, 2013 were in excess of $1 billion, including loans of $580 million and cash and investments of $365 million. In addition, deposits at the end of the quarter totaled $830 million thereby leading to a gross loan to deposit ratio of 69.8%.

Nonperforming loans have fallen for ten consecutive quarters and total $16.3 million as of June 30, 2013. This reflects a decrease of $5.7 million, or 35%, from December 31, 2012 and $154.8 million, or 90%, from the high at the end of 2010. Watch list loans which include nonperforming loans as well as loans that management considers at risk, were $45.0 million as of June 30th, representing a decline of $29.1 million or 39% from December 31, 2012 and $303.9 million or 87% from the high at December 31, 2010. Significantly, the Bank has had no loans past due over 30 days for 18 consecutive months.


June 30

December 31






Nonperforming Loans

$16.3 million

$39.6 million

$104.3 million

$171.1 million






Total Watch List Loans*

$45.0 million

$74.0 million

$246.2 million

$348.9 million

*Total Watch List Loans include all Nonperforming Loans

Reliance Bank’s Tier One Capital Ratio remains high as of June 30, 2013 at 10.07% following the infusion of new capital raised from investors in the first quarter. Reliance is one of the best-capitalized banks in the St. Louis region, and now has the necessary foundation in place to grow the Bank with new deposits and loans.

The Bank’s Texas Ratio continues to improve dropping to 41.8% on June 30, 2013 as compared with a high of 154% in March 2011. The Texas ratio is a commonly used metric to determine a bank’s financial strength and is calculated by taking a bank’s non-performing assets as a percentage of its total capital plus loan loss reserves.

The Company also achieved several other significant accomplishments during the second quarter:

  • The Federal Reserve Bank recently released the Holding Company from its Written Agreement. After this action, neither the Bank nor the Holding Company is subject to any regulatory orders.
  • As a result of the Bank’s removal from all Federal and State regulatory orders, the annual FDIC insurance premium has been reduced by over $1.0 million. This savings represents a significant improvement to earnings and s us use the improved cash flow for future growth.
  • Despite a highly competitive environment and interest rate pressure, the Bank has developed a significant new business pipeline and expects commercial loan volume to increase over the remaining year.
  • Discussions with the Treasury over the disposition of the Holding Company’s TARP commitment continue. Management is determined to find an equitable resolution with the Treasury and is confident that it can reach a conclusion to this important matter during the third quarter.


About Reliance Bancshares, Inc.

Reliance Bancshares, Inc., headquartered in St. Louis, MO, is a Missouri bank holding company that provides a full range of banking services to individual and corporate customers. The Company’s common stock is quoted on the Pink Sheets (under the symbol “RLBS”.It currently operates twenty branches in the St. Louis metropolitan area and two branches in Fort Myers, Florida under the name of Reliance Bank. The company’s total assets as of December 31, 2012 were approximately $1 Billion. Reliance Bank’s website can be found at