First Reliance Bancshares (FSRL) AI Stock Analysis

First Reliance Bancshares

(Other OTC:FSRL)

Select Model

Rating:62Neutral

Price Target:$20.50▲(5.34% Upside)

Action:downgraded

Date:09/26/26

FSRL scores 62 primarily due to improving financial performance in 2025 (strong revenue rebound, stable profitability, better leverage, and positive free cash flow), tempered by historical volatility and uneven cash-flow quality. Technicals are neutral-to-soft in the short term (slightly below short moving averages with mildly negative MACD), while valuation looks reasonable on a ~12.83 P/E.

Positive Factors

2025 revenue and profitability reboundThe sharp 2025 revenue rebound, combined with maintained net margins and solid operating profitability, indicates improved earnings capacity across the bank's lending and fee-based activities. If sustained, this recovery can support capital formation and continued investment in customer and banking services.

Negative Factors

Earnings and margin volatilityThe 2025 improvement has not yet established a consistently stable earnings pattern because revenue and operating margins have moved unevenly across periods. Such volatility makes future profitability less predictable and can complicate planning, capital formation, and lending decisions.

First Reliance Bancshares (FSRL) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $153.57M
Dividend Yield: ―
Average Volume (3M): 8,712
Price to Earnings (P/E): 12.7
Beta (1Y): -0.07
Revenue Growth: 4.62%
EPS Growth: 35.30%
Country: US
Employees: 160
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

First Reliance Bancshares Business Overview & Revenue Model

Company Description

First Reliance Bancshares, Inc. functions as the parent entity for First Reliance Bank, delivering a broad spectrum of financial products and banking services across the United States. Its offerings include a variety of deposit accounts such as check...

How the Company Makes Money

FSRL makes money primarily through its banking subsidiary by generating net interest income and noninterest income. Net interest income is earned from the spread between (1) interest and fees collected on loans and interest-earning assets (such as co...

First Reliance Bancshares Financial Statement Overview

Summary

Financials show a solid 2025 rebound: revenue growth was strong (+27.1% YoY), profitability held up (net margin ~15.7%; operating profitability ~20.1%), leverage improved (debt-to-equity ~0.43), and free cash flow returned positive (~$13.2M). The score is held back by notable year-to-year volatility (weak 2024 and multi-year swings in margins, leverage, and cash flow consistency).

Income Statement

72Positive

Balance Sheet

68Positive

Cash Flow

57Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.63M	69.64M	39.26M	51.91M	42.16M	40.86M
Gross Profit	49.95M	48.85M	39.26M	36.49M	39.00M	38.84M
EBITDA	15.06M	15.10M	0	7.01M	8.78M	7.46M
Net Income	11.88M	10.91M	5.92M	4.60M	5.93M	5.28M
Balance Sheet
Total Assets	1.13B	1.09B	1.07B	975.77M	938.64M	912.18M
Cash, Cash Equivalents and Short-Term Investments	4.04M	4.03M	47.23M	21.94M	34.06M	150.12M
Total Debt	94.80M	44.11M	25.75M	36.62M	69.26M	53.81M
Total Liabilities	1.03B	1.00B	989.35M	904.37M	875.34M	841.38M
Stockholders Equity	98.42M	93.07M	77.76M	71.40M	63.30M	70.80M
Cash Flow
Free Cash Flow	0	13.19M	-9.49M	8.88M	24.20M	34.36M
Operating Cash Flow	0	17.96M	-8.93M	9.51M	25.35M	39.54M
Investing Cash Flow	0	-44.20M	-52.10M	-49.06M	-175.44M	-183.61M
Financing Cash Flow	0	11.15M	86.31M	27.69M	33.77M	195.50M

First Reliance Bancshares Technical Analysis

Technical Analysis SentimentPositive

Last Price19.46

Price Trends

50DMA19.32Positive

100DMA18.90Positive

200DMA16.66Positive

Market Momentum

MACD0.00Negative

RSI61.32Neutral

STOCH93.47Negative

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 19.46 is above the 20-day moving average (MA) of 19.06, above the 50-day MA of 19.32, and above the 200-day MA of 16.66, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 93.47 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

FSRL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUBN	77Outperform	$90.59M	10.44	9.42%	4.15%	-1.64%	21.56%
UBCP	69Neutral	$81.21M	9.97	11.53%	6.71%	6.21%	8.32%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSRL	62Neutral	$153.57M	12.72	12.36%	―	4.62%	35.30%
SSBI	52Neutral	$77.40M	190.50	0.33%	―	-7.24%	―

* Financial Sector Average

Performance Comparison

FSRL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FSRL	First Reliance Bancshares	19.46	8.56	78.53%
AUBN	Auburn National Bancorporation	26.00	1.56	6.40%
SSBI	Summit State Bank	11.43	0.59	5.44%
UBCP	United Bancorp	14.16	1.86	15.09%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 26, 2026

First Reliance Bancshares AI Stock Analysis