Bank of South Carolina Corporation Announces Third Quarter Earnings

Higher net interest income accompanied earnings growth, while average deposits declined from the year-earlier quarter.

Rhea-AI Summary

Bank of South Carolina (OTCQX: BKSC) reported unaudited third-quarter 2026 earnings of $2,421,687, up 12.97% from the same quarter last year. Basic and diluted earnings per share rose to $0.45 and $0.44, respectively, from $0.39 and $0.38. Nine-month earnings increased 14.55% to $6,751,539.

Quarterly net interest income rose to $6,582,072 from $6,014,142, while net interest margin increased to 4.85% from 4.30%. Annualized returns on average assets and equity reached 1.71% and 15.49%, respectively, versus 1.46% and 14.58%. Average loans increased to $371,775,367, but average deposits declined to $485,678,767. Other income fell and other expense increased. Loans more than 30 days past due represented 0.28%, versus 0.21% a year earlier and 0.98% in the preceding quarter. The community bank leverage ratio rose to 11.93% from 11.19% a year earlier.

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Positive

• Moderate pointThird-quarter net income increased 12.97% to $2,421,687 from $2,143,640 a year earlier.
• Moderate pointThird-quarter net interest income rose to $6,582,072 from $6,014,142 a year earlier.
• Moderate pointThird-quarter net interest margin increased to 4.85% from 4.30% a year earlier.
• Moderate pointThird-quarter average loans increased to $371,775,367 from $360,100,453 a year earlier.
• Moderate pointCommunity bank leverage ratio increased to 11.93% from 11.19% a year earlier.

10 minor points

• Minor pointThird-quarter basic EPS rose to $0.45 from $0.39; diluted EPS rose to $0.44 from $0.38.
• Minor pointNine-month earnings increased 14.55% to $6,751,539 from $5,893,809 a year earlier.
• Minor pointThird-quarter credit-loss provision decreased to $150,000 from $250,000 a year earlier.
• Minor pointThird-quarter annualized return on average assets increased to 1.71% from 1.46% a year earlier.
• Minor pointThird-quarter annualized return on average equity increased to 15.49% from 14.58% a year earlier.
• Minor pointNine-month annualized return on average assets increased to 1.60% from 1.37% a year earlier.
• Minor pointNine-month annualized return on average equity increased to 14.69% from 14.03% a year earlier.
• Minor pointThird-quarter efficiency ratio improved to 53.20% from 53.82% a year earlier.
• Minor pointThird-quarter average shareholders' equity increased to $62,041,993 from $58,315,231 a year earlier.
• Minor pointBook value per share reached $11.32, above $10.88 a year earlier but below the preceding quarter's $11.43.

Negative

• Moderate pointThird-quarter average deposits declined to $485,678,767 from $506,765,581 a year earlier.
• Moderate pointThird-quarter average assets declined to $561,996,910 from $580,830,205 a year earlier.
• Minor pointThird-quarter other income fell to $447,624 from $519,500 a year earlier.
• Minor pointThird-quarter other expense increased to $3,740,056 from $3,516,683 a year earlier.
• Minor pointThird-quarter income tax expense increased to $717,953 from $623,319 a year earlier.
• Minor pointLoans over 30 days past due reached 0.28%, above 0.21% a year earlier but below the preceding quarter's 0.98%.

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CHARLESTON, S.C., Oct. 8, 2026 /PRNewswire/ -- The Bank of South Carolina Corporation (OTCQX: BKSC) announced unaudited earnings of $2,421,687, or $0.45 basic and $0.44 diluted earnings per share, for the quarter ended September 30, 2026 – an increase of $278,047, or 12.97%, from earnings for the quarter ended September 30, 2025 of $2,143,640, or $0.39 basic and $0.38 diluted earnings per share. Annualized returns on average assets and average equity for the quarter ended September 30, 2026 were 1.71% and 15.49%, respectively, compared with September 30, 2025 annualized returns on average assets and average equity of 1.46% and 14.58%, respectively. Unaudited earnings for the nine months ended September 30, 2026 increased $857,730, or 14.55%, to $6,751,539 compared to $5,893,809 for the nine months ended September 30, 2025. Annualized returns on average assets and average equity for the nine months ended September 30, 2026 were 1.60% and 14.69%, respectively, compared with September 30, 2025 annualized returns on average assets and average equity of 1.37% and 14.03%, respectively.

Eugene H. Walpole, IV, President and Chief Executive Officer, stated, "We are pleased to report another strong quarter, with earnings increasing nearly 13% over the same period a year ago and nearly 15% year-to-date compared with the same period last year. A net interest margin of 4.85% helped drive quarterly returns on average assets and equity of 1.71% and 15.49%, respectively. We continue to see steady loan demand in our local markets, and our solid capital position and low levels of past-due loans have us well-positioned to serve our customers and pursue these opportunities. We look forward to finishing out another successful year for the Bank."

Selected Condensed Consolidated Financial Data (Unaudited)
	For the Three Months Ended
	September 30, 2026	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025
Total Interest and Fee Income	$        7,473,888	$        7,259,871	$        6,869,250	$        7,139,722	$        7,317,405
Total Interest Expense	891,816	893,168	1,008,229	1,207,326	1,303,263
Net Interest Income	6,582,072	6,366,703	5,861,021	5,932,396	6,014,142
Provision for Credit Losses	150,000	150,000	50,000	200,000	250,000
Net Interest Income After Provision for Credit Losses	6,432,072	6,216,703	5,811,021	5,732,396	5,764,142
Total Other Income	447,624	467,782	414,100	448,178	519,500
Total Other Expense	3,740,056	3,673,251	3,627,528	3,765,414	3,516,683
Income Before Income Tax Expense	3,139,640	3,011,234	2,597,593	2,415,160	2,766,959
Income Tax Expense	717,953	692,301	586,674	401,879	623,319
Net Income	$        2,421,687	$        2,318,933	$        2,010,919	$        2,013,281	$        2,143,640
Earnings Per Share - Basic	$                 0.45	$                 0.43	$                 0.37	$                 0.37	$                 0.39
Earnings Per Share - Diluted	$                 0.44	$                 0.42	$                 0.36	$                 0.36	$                 0.38
Return on Average Assets	1.71 %	1.64 %	1.46 %	1.39 %	1.46 %
Return on Average Equity	15.49 %	15.16 %	13.39 %	13.28 %	14.58 %
Net Interest Margin	4.85 %	4.71 %	4.43 %	4.28 %	4.30 %
Efficiency Ratio	53.20 %	53.75 %	57.81 %	59.01 %	53.82 %
Common Stock Shares Outstanding	5,338,872	5,338,872	5,379,779	5,399,732	5,420,099
Book Value Per Share	$               11.32	$               11.43	$               11.22	$               11.14	$               10.88
Community Bank Leverage Ratio	11.93 %	11.63 %	11.71 %	11.33 %	11.19 %
% Loans Past Due > 30 Days	0.28 %	0.98 %	0.43 %	0.76 %	0.21 %
Allowance for Credit Losses as a % of Total Loans	1.21 %	1.22 %	1.19 %	1.18 %	1.16 %
Quarterly Averages:
Total Assets	$    561,996,910	$    567,201,707	$    560,348,116	$    575,001,866	$    580,830,205
Total Loans	$    371,775,367	$    371,135,923	$    361,591,069	$    361,339,396	$    360,100,453
Total Deposits	$    485,678,767	$    491,625,349	$    484,406,399	$    498,995,120	$    506,765,581
Total Shareholders' Equity	$      62,041,993	$      61,371,224	$      60,908,702	$      60,159,434	$      58,315,231

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

FAQ

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What were Bank of South Carolina's third-quarter 2026 earnings?

Bank of South Carolina reported unaudited quarterly net income of $2,421,687, up 12.97% from $2,143,640 a year earlier. For the quarter ended September 30, 2026, basic earnings per share were $0.45 and diluted earnings per share were $0.44, compared with $0.39 and $0.38, respectively.

How much did Bank of South Carolina's earnings grow in the first nine months of 2026?

Unaudited earnings for the nine months ended September 30, 2026 increased 14.55% to $6,751,539, compared with $5,893,809 for the same period in 2025. The increase was $857,730.

What was Bank of South Carolina's loan-loss allowance ratio in the third quarter of 2026?

The allowance for credit losses, funds reserved for potential loan losses, was 1.21% of total loans. That compared with 1.22% in the preceding quarter and 1.16% in the year-earlier quarter.