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Bank of South Carolina Corporation Announces Second Quarter Earnings

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The Bank of South Carolina Corporation (BKSC) reported unaudited earnings of $1,341,636 for Q2 2020, translating to $0.24 per share, a decline of 27.12% compared to $1,840,847 or $0.33 per share in Q2 2019. For the first half of 2020, earnings decreased 14.39% to $3,022,154. Despite the decline in profits, the company noted strong deposit growth and minimal borrower requests for payment deferrals. The bank originated 266 loans totaling over $37 million under the Payroll Protection Program, indicating active support for local businesses.

Positive
  • Robust deposit growth reported.
  • Participation in Payroll Protection Program with 266 loans totaling over $37 million.
  • Strong asset quality with minimal borrower payment deferral requests.
Negative
  • Earnings declined by 27.12% year-over-year for Q2.
  • Overall first half earnings decreased by 14.39% compared to 2019.
  • Annualized returns on average assets decreased from 1.65% to 1.28%.

CHARLESTON, S.C., July 9, 2020 /PRNewswire/ -- The Bank of South Carolina Corporation (Nasdaq: BKSC) announced unaudited earnings of $1,341,636, or $0.24 and $0.23 basic and diluted earnings per share, respectively, for the quarter ended June 30, 2020 – a decrease of $499,211, or 27.12%, from earnings for the quarter ended June 30, 2019 of $1,840,847, or $0.33 basic and diluted earnings per share. Unaudited earnings for the six months ended June 30, 2020 decreased $507,957, or 14.39%, to $3,022,154 compared to $3,530,111 for the six months ended June 20, 2019. Annualized returns on average assets and average equity for the six months ended June 30, 2020 were 1.28% and 11.46%, respectively, compared with June 30, 2019 annualized returns on average assets and average equity of 1.65% and 14.99%, respectively.

Fleetwood S. Hassell, President of the Bank of South Carolina, stated, "An interest rate environment rivaling that of the Great Recession has continued to impact our margins and thus our profits for the second quarter. We are, however, encouraged by the outstanding contribution from our mortgage operation and the robust deposit growth already experienced this year.  Asset quality remains strong as we have not, to-date, experienced a significant number of requests from borrowers for payment deferrals or other accommodations.  Our exposure to the hospitality and retail markets is minimal.

Our participation in the Payroll Protection Program resulted in the origination of 266 loans totaling more than $37 million.  We are extremely proud of the effort put forth by our employees to serve the needs of Lowcountry businesses and not-for-profit organizations during these difficult times.

We remain well capitalized and continue to reward our shareholders, having paid quarterly cash dividends in 123 of the last 125 quarters. I am encouraged that, in the last half of this year, we will continue to serve and support our customers with the goal for all to remain healthy."

The following table shows the balance sheet and income statement highlights:










(Unaudited)
June 30,


(Unaudited)

June 30,


2020


2019









Common stock shares outstanding                      

5,530,682


5,525,278

Book value per share                   

$               9.75


$               8.94

Total assets                                

$  542,582,502


$  442,374,445





Three Months Ended












Net income                               

$      1,341,636


$      1,840,847





Basic earnings per share                        

$               0.24


$               0.33

Diluted earnings per share                       

$               0.23


$               0.33





Weighted average shares outstanding:




Basic                              

5,529,632


5,517,236

Diluted                         

5,714,121


5,587,985

Six Months Ended




Net income

$      3,022,154


$      3,530,111

Basic earnings per share

$               0.55


$               0.64

Diluted earnings per share

$               0.53


$               0.63

Weighted average shares outstanding:




Basic

5,529,944


5,515,832

Diluted

5,708,718


5,586,813

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 South Carolina state-chartered bank with offices in Charleston, North Charleston, Summerville, Mt. Pleasant, and the West Ashley community and has been in continuous operation since 1987. Our website is www.banksc.com. Bank of South Carolina Corporation currently trades its common stock on the NASDAQ stock market under the symbol "BKSC".

"Cision" View original content:http://www.prnewswire.com/news-releases/bank-of-south-carolina-corporation-announces-second-quarter-earnings-301090365.html

SOURCE Bank of South Carolina Corporation

FAQ

What are the Q2 2020 earnings for BKSC?

BKSC reported Q2 2020 earnings of $1,341,636 or $0.24 per share, a decrease of 27.12% from Q2 2019.

How did the earnings for the first half of 2020 compare to 2019 for BKSC?

For the first half of 2020, BKSC's earnings were $3,022,154, down 14.39% from $3,530,111 in the same period of 2019.

What is the impact of interest rates on BKSC's earnings?

The interest rate environment has negatively impacted BKSC's margins and profits, contributing to the earnings decline.

How many loans did BKSC originate through the Payroll Protection Program?

BKSC originated 266 loans totaling over $37 million under the Payroll Protection Program.

BANK OF SO CAROLINA CORP

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Banks - Regional
Financial Services
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United States of America
Charleston