Bank of South Carolina Corporation Announces Second Quarter Earnings
The Bank of South Carolina (OTCQX: BKSC) has announced unaudited earnings of $1,753,798 or $0.32 per share for Q2 2024, marking a 37.26% increase from $1,277,717 or $0.23 per share in Q2 2023.
Earnings for the first six months of 2024 rose by 9.18% to $3,129,594 compared to $2,866,496 for the same period in 2023. The bank reported an annualized return on average assets of 1.04% and return on average equity of 13.21% for H1 2024.
The CEO highlighted the company's strategy of reallocating investment securities to higher-yielding loans and reducing borrowed funds, leading to improved profitability and net interest margin. The bank also mentioned strong loan demand and appropriate risk pricing without sacrificing credit quality.
Key metrics include a net interest income of $5,138,430, an efficiency ratio improvement to 59.54%, and a net income of $1,753,798 for Q2 2024. However, there was a slight provision for credit losses of $50,000.
- Q2 2024 earnings increased by 37.26% to $1,753,798.
- Earnings per share rose from $0.23 in Q2 2023 to $0.32 in Q2 2024.
- Net interest income grew to $5,138,430 in Q2 2024.
- Efficiency ratio improved to 59.54% in Q2 2024.
- Annualized return on average assets increased to 1.04%.
- Annualized return on average equity stood at 13.21%.
- Provision for credit losses was $50,000 in Q2 2024.
- Total assets decreased to $590,639,502 in Q2 2024 from $650,131,459 in Q2 2023.
- Total deposits dropped to $516,221,132 in Q2 2024 from $574,075,057 in Q2 2023.
Insights
The 37.26% increase in quarterly earnings marks a significant improvement for the Bank of South Carolina Corporation. This jump is primarily driven by a rise in net interest income, which increased to
One key point is the slight increase in the provision for credit losses at
In the short-term, the bank's strong performance and improved profitability may enhance investor confidence. Long-term, continued successful loan reallocation and prudent expense management will be important in sustaining growth. However, they need to maintain credit quality amid potential economic fluctuations.
The improvements in the Bank of South Carolina Corporation's earnings per share (EPS) from
The loan growth from
Additionally, the decrease in total deposits from
Eugene H. Walpole, IV, President and Chief Executive Officer, stated, "While six months don't make a year, we are quite pleased with operating results for the quarter and year-to-date, in which we generated a return on average assets of
Selected Condensed Consolidated Financial Data (Unaudited) | |||||
For the Three Months Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30, | |
Total Interest and Fee Income | $ 6,702,792 | $ 6,593,463 | $ 6,500,593 | $ 6,154,138 | $ 6,027,060 |
Total Interest Expense | 1,564,362 | 1,861,311 | 1,821,435 | 1,619,582 | 1,420,080 |
Net Interest Income | 5,138,430 | 4,732,152 | 4,679,158 | 4,534,556 | 4,606,980 |
Provision for Credit Losses | 50,000 | - | - | - | - |
Net Interest Income After Provision for Credit Losses | 5,088,430 | 4,732,152 | 4,679,158 | 4,534,556 | 4,606,980 |
Total Other Income | 471,075 | 423,497 | 397,970 | 480,448 | 437,121 |
Total Other Expense | 3,339,934 | 3,359,684 | 3,309,138 | 3,381,506 | 3,386,022 |
Income Before Income Tax Expense | 2,219,571 | 1,795,965 | 1,767,988 | 1,633,498 | 1,658,079 |
Income Tax Expense | 465,773 | 420,169 | 404,239 | 370,128 | 380,362 |
Net Income | $ 1,753,798 | $ 1,375,796 | $ 1,363,749 | $ 1,263,370 | $ 1,277,717 |
Earnings Per Share - Basic | $ 0.32 | $ 0.25 | $ 0.25 | $ 0.23 | $ 0.23 |
Earnings Per Share - Diluted | $ 0.32 | $ 0.25 | $ 0.24 | $ 0.23 | $ 0.23 |
Return on Average Assets | 1.19 % | 0.89 % | 0.87 % | 0.78 % | 0.79 % |
Return on Average Equity | 14.71 % | 11.69 % | 12.74 % | 11.66 % | 11.66 % |
Common Stock Shares Outstanding | 5,457,907 | 5,462,794 | 5,469,251 | 5,485,755 | 5,548,239 |
Book Value Per Share | $ 8.93 | $ 8.69 | $ 8.61 | $ 7.51 | $ 7.67 |
Efficiency Ratio | 59.54 % | 65.17 % | 65.18 % | 67.43 % | 67.13 % |
Net Interest Margin | 3.68 % | 3.20 % | 3.12 % | 2.96 % | 2.98 % |
% Loans Past Due > 30 Days | 0.19 % | 0.32 % | 0.53 % | 0.75 % |
0.68 % |
Allowance for Credit Losses as a % of Total Loans | 1.04 % | 1.04 % | 1.07 % | 1.09 % |
1.08 % |
Quarterly Averages: | |||||
Total Assets | $ 590,639,502 | $ 624,732,564 | $ 625,093,859 | $ 639,253,597 | $ 650,131,459 |
Total Loans | $ 359,514,482 | $ 353,396,331 | $ 344,789,580 | $ 339,152,054 | $ 341,123,966 |
Total Deposits | $ 516,221,132 | $ 519,023,338 | $ 518,397,166 | $ 540,290,630 | $ 574,075,057 |
Total Shareholders' Equity | $ 47,951,482 | $ 47,328,863 | $ 42,464,898 | $ 42,997,996 | $ 43,952,144 |
About Bank of South Carolina Corporation
The Bank of South Carolina Corporation is the holding company of The Bank of South Carolina ("The Bank"). The Bank is a
Forward-Looking-Statements
This release contains forward-looking statements that are not historical facts and that are intended to be "forward-looking statements" as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about the Company's plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company's future operating results. When used in this release, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company's loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company's loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE BANK OF SOUTH CAROLINA
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