Bank of South Carolina Corporation Announces Second Quarter Earnings
Rhea-AI Summary
Bank of South Carolina (OTCQX: BKSC) reported unaudited Q2 2026 net income of $2.32 million, or $0.43 basic EPS, up 18.55% from Q2 2025. Diluted EPS was $0.42.
Return on average assets was 1.64% and return on average equity 15.16%. Net interest margin reached 4.71%, while the efficiency ratio was 53.75%. For the first half of 2026, earnings rose 15.46% to $4.33 million. Management highlighted strong capital, a higher cash dividend, an active share repurchase program, and record quarterly earnings.
Positive
- Q2 2026 net income up 18.55% year-over-year
- Six-month 2026 earnings increased 15.46% versus 2025 period
- Net interest margin rose to 4.71% in Q2 2026
- Return on average equity reached 15.16% in Q2 2026
- Efficiency ratio improved to 53.75% from 57.97% year-ago
- Book value per share increased to $11.43 from $10.47
Negative
- Provision for credit losses increased to $150,000 in Q2 2026
- Loans past due over 30 days rose to 0.98%
News Market Reaction – BKSC
In the Jul 9 session, BKSC gained 2.27%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Eugene H. Walpole, IV, President and Chief Executive Officer, stated, "The second quarter of 2026 marked the highest quarterly earnings in our Company's history, reflecting solid loan and deposit growth, further expansion of net interest margin and earnings per share, and the strength of our balance sheet. We continue to see attractive opportunities to deploy liquidity generated from maturing investment securities into higher yielding loans throughout our markets. Our capital position remains exceptionally strong, even as we continue to return capital to shareholders through our recently announced cash dividend increase and the ongoing execution of our share repurchase program. These outstanding results are a testament to the dedication of our employees, the confidence our customers place in us, and the value of our relationship-based approach to banking."
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 | $ 7,259,871 | $ 6,869,250 | $ 7,139,722 | $ 7,317,405 | $ 7,202,647 |
Total Interest Expense | 893,168 | 1,008,229 | 1,207,326 | 1,303,263 | 1,304,294 |
Net Interest Income | 6,366,703 | 5,861,021 | 5,932,396 | 6,014,142 | 5,898,353 |
Provision for Credit Losses | 150,000 | 50,000 | 200,000 | 250,000 | 100,000 |
Net Interest Income After Provision for Credit Losses | 6,216,703 | 5,811,021 | 5,732,396 | 5,764,142 | 5,798,353 |
Total Other Income | 467,782 | 414,100 | 448,178 | 519,500 | 421,104 |
Total Other Expense | 3,673,251 | 3,627,528 | 3,765,414 | 3,516,683 | 3,663,556 |
Income Before Income Tax Expense | 3,011,234 | 2,597,593 | 2,415,160 | 2,766,959 | 2,555,901 |
Income Tax Expense | 692,301 | 586,674 | 401,879 | 623,319 | 599,746 |
Net Income | $ 2,318,933 | $ 2,010,919 | $ 2,013,281 | $ 2,143,640 | $ 1,956,155 |
Earnings Per Share - Basic | $ 0.43 | $ 0.37 | $ 0.37 | $ 0.39 | $ 0.36 |
Earnings Per Share - Diluted | $ 0.42 | $ 0.36 | $ 0.36 | $ 0.38 | $ 0.35 |
Return on Average Assets | 1.64 % | 1.46 % | 1.39 % | 1.46 % | 1.37 % |
Return on Average Equity | 15.16 % | 13.39 % | 13.28 % | 14.58 % | 13.95 % |
Net Interest Margin | 4.71 % | 4.43 % | 4.28 % | 4.30 % | 4.33 % |
Efficiency Ratio | 53.75 % | 57.81 % | 59.01 % | 53.82 % | 57.97 % |
Common Stock Shares Outstanding | 5,338,872 | 5,379,779 | 5,399,732 | 5,420,099 | 5,422,475 |
Book Value Per Share | $ 11.43 | $ 11.22 | $ 11.14 | $ 10.88 | $ 10.47 |
Community Bank Leverage Ratio | 11.63 % | 11.71 % | 11.33 % | 11.19 % | 11.19 % |
% Loans Past Due > 30 Days | 0.98 % | 0.43 % | 0.76 % | 0.21 % | 0.29 % |
Allowance for Credit Losses as a % of Total Loans | 1.22 % | 1.19 % | 1.18 % | 1.16 % | 1.06 % |
Quarterly Averages: | |||||
Total Assets | $ 567,201,707 | $ 560,348,116 | $ 575,001,866 | $ 580,830,205 | $ 572,875,953 |
Total Loans | $ 371,135,923 | $ 361,591,069 | $ 361,339,396 | $ 360,100,453 | $ 363,065,921 |
Total Deposits | $ 491,625,349 | $ 484,406,399 | $ 498,995,120 | $ 506,765,581 | $ 501,217,309 |
Total Shareholders' Equity | $ 61,371,224 | $ 60,908,702 | $ 60,159,434 | $ 58,315,231 | $ 56,244,469 |
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 financial institution with offices in Charleston, North Charleston, Summerville, Mt. Pleasant, James Island, 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 OTCQX® Best Market under the symbol "BKSC".
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