First Reliance Bancshares has reported a net income of $765,178 for the third quarter ended September 30, 2008, a 31% increase, compared to $584,877 posted in the same quarter of 2007.

The company said that the earnings benefited from growth in net interest income and reduction in non-interest expense. Net interest income increased to $4.9 million in the third quarter of 2008 over $4.7 million reported in the prior-year period. Non-interest expense decreased 3% to $4.5 million in the quarter. Diluted earnings per share were $0.21, compared to the $0.17 reported in the prior-year period.

Net income for the nine months ended September 30, 2008 was $2.3 million, a growth of 3%, or $0.63 per diluted share, compared to $2.2 million, or $0.62 per diluted share, for the nine months ended September 30, 2007.

Net interest income increased to $14.7 million in the nine months ended September 30, 2008, over $13.8 million recorded during the corresponding period a year ago, while non-interest income was $3.9 million for both periods.

As of September 30, 2008, total assets were $573.7 million, an increase of $48.9 million or 9%, over the $524.8 million reported for September 30, 2007. Loans increased 6% to $459.7 million, while deposits increased to $447.6 million, up 2% from $440.8 million reported for the prior-year period.