First Reliance Bank President and Chief Executive Officer, F.R. Rick Saunders, Jr., today issued the following statement about the safety and soundness of First Reliance Bank and the banking industry.

First Reliance Bank President, Rick Saunders said, "Recently there have been confusing reports on the banking industry which could cause concerns and worry among bank depositors throughout the country.

FDIC Chairman, Sheila C. Bair issued a statement, July 14, 2008, saying that the overwhelming majority of banks in this country are safe and sound. Her statement emphasized that all bank depositors should also understand they can have insurance coverage in excess of the basic limits of $100,000 per institution, with an additional $250,000 per institution for IRAs. No bank depositor has ever lost a penny of FDIC insured deposits.

First Reliance Bank has experienced strong financial performance since we opened in 1999. Our credit quality is strong and we do not invest in sub-prime mortgages. First Reliance is well capitalized above regulatory requirements and it has strong liquidity. Net income for the quarter ended March 31, 2008 grew 17%, over the quarter ended March 31, 2007. Total assets increased 24% over March 31, 2007, loans increased 25% and deposits increased 10% and are extremely stable.

According to a 2008 ABA Issue Summary on the Safety and Soundness of the Banking Industry, banking capital in the overall banking industry- which serves as a buffer against any losses - is at historic highs. As of March 2008, the industry held $1.36 trillion in capital plus $120.9 billion in reserves for a total buffer of $1.48 trillion. Additionally, Banks have experienced strong growth in loan performance over the past six years, supporting a growing economy.

Our banking system is strong. First Reliance Bank is financially sound and has a history of strong financial performance. Many people are turning to their local community banks to help refinance existing mortgages or consolidate other forms of debt. First Reliance's growth in deposits and loans demonstrate that our community bank continues to be the best source of business and personal services in the communities we serve. Financial information on First Reliance can be viewed under the Investor Relations tab on our homepage, www.firstreliance.com.

We invite our customers to contact us if you have any questions or concerns about the banking industry or First Reliance Bank."

Rick Saunders, President/CEO

For more information you can reach us by calling 1-888-543-5510. For information on how to calculate your deposit insurance coverage go to: http://www.fdic.gov/deposit/deposits/index.html