Bank of South Carolina Corporation Achieves Record Quarterly Earnings in Q3 2025

Bank of South Carolina Corporation Announces Record Q3 Earnings

The Bank of South Carolina Corporation (OTCQX: BKSC) recently reported its unaudited earnings for the third quarter of 2025, marking a notable achievement for the banking institution. For the period ending September 30, 2025, the bank generated earnings of $2,143,640, translating to a basic earnings per share of $0.40 and a diluted earnings per share of $0.38. This figure reflects an impressive increase of $341,777, or 18.97%, compared to the same quarter of the previous year, where earnings totaled $1,801,863, equivalent to $0.33 per share.

Over the first nine months of 2025, the Bank of South Carolina's earnings surged to $5,893,809, a growth of $962,352 (or 19.51%) from $4,931,457 during the same period in 2024. The annualized returns on average assets and equity stood at 1.37% and 14.03%, respectively, both showing an improvement over the previous year’s figures of 1.10% and 13.50%.

Eugene H. Walpole IV, President and CEO of the Bank, expressed his satisfaction with the results, stating, "We are pleased to report net income of $2.1 million for the quarter - our highest quarterly earnings on record and a 19% increase over the same period in 2024. A combination of strong net interest margin, steady fee income, and disciplined expense management continue to drive these outstanding results."

The bank noted that while loan volumes saw a decline during this quarter due to anticipated payoffs, it proactively increased its allowance for credit losses as a vital part of its risk management strategy. This conservative approach is intended to safeguard the bank's financial health amidst uncertain economic conditions.

Walpole also highlighted the bank’s commitment to its shareholders by announcing an increase in the cash dividend for the second consecutive quarter and a total of three increases over the past year. He said, "Marking a true milestone in our thirty-eight-year history," indicating the positive trajectory of the bank amid a competitive marketplace.

Financial Overview

The earnings release included a summary of condensed consolidated financial data, which further elucidated the bank's financial performance. The total interest and fee income for the third quarter reached $7,317,405, slightly up from $7,202,647 in the previous quarter. The net interest income, calculated after provisions for credit losses, amounted to $5,764,142.

In terms of expenses, the total other income for the quarter was reported as $519,500, with total other expenses at $3,516,683, resulting in an income before tax expense of $2,766,959, and a net income reflecting the bank’s robust operation.

Shareholder Value and Financial Strength

The earnings per share saw a notable uptick, rising from $0.36 in the previous quarter to the current $0.40. This growth is indicative of the bank's focus on maximizing value for its shareholders while maintaining a balanced approach towards risk management and operational efficiency. The efficiency ratio improved to 53.82%, showcasing the company's effective cost management practices.

The Bank of South Carolina's balance sheet remains strong with total assets estimated at approximately $580.83 million, and a healthy community bank leverage ratio of 11.19%. The percentage of loans past due over 30 days has improved, illustrating the soundness of the bank's lending practices.

A Legacy of Financial Resilience

Since its inception in 1987, the Bank of South Carolina has established itself as a key player in the regional banking sector, with branches strategically located throughout Charleston, North Charleston, Summerville, and other areas. The remarkable growth in earnings and enhanced shareholder returns are a testament to the bank's strategic direction under Walpole’s leadership.

As the year progresses, the Bank of South Carolina Corporation remains committed to its vision of providing quality banking services while adapting to the ever-evolving economic landscape. The optimistic earnings report serves not only as an indicator of past success but also as a strong foundation for future growth, empowering both the bank and its stakeholders.

In conclusion, the Bank of South Carolina continues to demonstrate remarkable resilience and agility in its operations, aiming for sustained growth and stability amid potential market fluctuations.