As the calendar turns to 2024, investors are eager to gauge the financial health of companies across various sectors. One such company that has recently reported its earnings is the Bank of South Carolina Corporation (OTCQX: BKSC). In this article, we will delve into the bank's Q4 earnings snapshot, highlighting key performance indicators and the outlook for the future.



The Bank of South Carolina Corporation, the holding company of The Bank of South Carolina, announced unaudited earnings of $5,493,616, or $0.99 and $0.98 basic and diluted earnings per share, respectively, for the year ended December 31, 2023. This represents a decrease of $1,163,524, or 17.45%, from earnings for the year ended December 31, 2022. Unaudited earnings for the three months ended December 31, 2023 decreased $444,036, or 24.56%, to $1,363,749 compared to $1,807,785 for the three months ended December 31, 2022.



Returns on average assets and average equity for the year ended December 31, 2023 were 0.86% and 12.90%, respectively, compared with December 31, 2022 returns on average assets and average equity of 1.01% and 15.26%, respectively. Eugene H. Walpole, IV, President and Chief Executive Officer, stated, "Every year has its own set of challenges, and 2023 was certainly no exception. Nonetheless, we were quite pleased to finish on a high note, with net income for the fourth quarter up 8% over third quarter results. The quarter also yielded improvements to earnings per share and book value per share."



The bank's loan growth and credit quality trends are significant in the current economic environment. The bank's loan growth exceeded expectations, with both quarterly and annual loan growth exceeding expectations, in large part due to strengthening commercial loan activity within the markets in which they operate. Meanwhile, loans greater than 30 days past due continue to track well under one percent of total loans, an indication that credit quality within the bank's portfolio remains sound.



The bank's investment portfolio repricing in 2024 contributes to its optimism about future performance. The bank anticipates the repricing of approximately 30% of its investment portfolio in 2024, which is expected to positively impact the bank's financials by resulting in higher yields on these investments. This, in turn, should lead to increased net interest income, which is a significant contributor to the bank's overall earnings.

In conclusion, the Bank of South Carolina Corporation's Q4 earnings snapshot reveals a mixed bag of results, with a decrease in earnings compared to the previous year. However, the bank remains optimistic about its future prospects, citing strengthening commercial loan activity, sound credit quality, and the anticipated repricing of its investment portfolio in 2024. As investors continue to monitor the bank's performance, they should keep an eye on key performance indicators such as earnings per share, loan growth, and credit quality trends to gauge the bank's financial health and potential for future growth.