Bank of South Carolina Corporation Announces 3rd Quarter Earnings.

CHARLESTON, S.C: The Bank of South Carolina Corporation (OTCQX: BKSC) announced unaudited earnings of $1,263,371, or $0.23 basic and diluted earnings per share, for the quarter ended September 30, 2023 - a decrease of $576,896, or 31.35%, from earnings for the quarter ended September 30, 2022 of $1,840,267, or $0.33 basic and diluted earnings per share. Unaudited earnings for the nine months ended September 30, 2023 decreased $717,489, or 14.80%, to $4,129,866 compared to $4,847,355 for the nine months ended September 30, 2022. Annualized returns on average assets and average equity for the nine months ended September 30, 2023 were 0.86% and 12.95%, respectively, compared with September 30, 2022 annualized returns on average assets and average equity of 0.98% and 14.11%, respectively.

Eugene H. Walpole, IV, President and Chief Executive Officer, stated, "During the quarter, we experienced sustained pressure on funding costs, as the Federal Reserve continues the march upward in its pursuit to combat inflation. The precipitous rise in interest rates over the last year and a half - while having some positive impact on earning asset yields - has also served to create immense competition within our market to maintain and attract customer deposits. As a result, net interest spread remains under pressure along with weakening demand for mortgage loans. Meanwhile, commercial loan activity has been steady and asset quality remains strong, as evidenced by past due loan balances over thirty days remaining less than one percent of total loans. As we look ahead to finishing out the year and moving into 2024, we eagerly anticipate the significant amount of upcoming maturities within our investment portfolio, which will not only strengthen liquidity but also provide the opportunity to redeploy at considerably higher yields."

Selected Condensed Consolidated Financial Data

(Unaudited)

For the Three Months Ended

September 30,

2023

June 30,

2023

March 31,

2023

December 31,

2022

Total Interest and Fee Income

$ 6,154,138

$ 6,027,060

$ 5,631,834

$ 5,312,520

Total Interest Expense

1,619,582

1,420,080

931,101

189,653

Net Interest Income

4,534,556

4,606,980

4,700,733

5,122,867

Provision for Credit Losses

-

-

45,000

-

Net Interest Income After Provision for Credit Losses

4,534,556

4,606,980

4,655,733

5,122,867

Total Other Income

480,449

437,121

449,201

393,270

Total Other Expense

3,381,506

3,386,022

3,250,361

3,181,330

Income Before Income Tax Expense

1,633,498

1,658...