South Carolina
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57-1021355
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(State or other jurisdiction of
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(IRS Employer
|
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incorporation or organization)
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Identification Number)
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Large accelerated filer
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o
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Accelerated Filer
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o
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Non-accelerated filer
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o
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Smaller reporting Company
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x
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Certifications
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45 |
(Unaudited)
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(Audited)
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|||||||
March 31, 2013
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December 31, 2012
|
|||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 4,719,517 | $ | 5,137,888 | ||||
Interest bearing deposits in other banks
|
38,374,283 | 25,903,960 | ||||||
Investment securities available for sale
|
58,415,863 | 58,514,216 | ||||||
Mortgage loans to be sold
|
10,193,974 | 18,479,878 | ||||||
Loans
|
216,193,030 | 217,128,624 | ||||||
Less: Allowance for loan losses
|
(3,418,953 | ) | (3,432,844 | ) | ||||
Net loans
|
212,774,077 | 213,695,780 | ||||||
Premises and equipment, net
|
2,489,864 | 2,486,792 | ||||||
Accrued interest receivable
|
1,037,109 | 1,124,613 | ||||||
Other assets
|
642,883 | 67,519 | ||||||
Total assets
|
$ | 328,647,570 | $ | 325,410,646 | ||||
Liabilities and Shareholders' Equity:
|
||||||||
Liabilities
|
||||||||
Deposits:
|
||||||||
Non-interest bearing demand
|
86,883,466 | 83,447,675 | ||||||
Interest bearing demand
|
76,682,220 | 77,441,588 | ||||||
Money market accounts
|
52,807,591 | 54,450,828 | ||||||
Certificates of deposit $100,000 and over
|
42,410,373 | 40,903,886 | ||||||
Other time deposits
|
15,815,284 | 15,909,164 | ||||||
Other savings deposits
|
18,379,803 | 18,920,702 | ||||||
Total deposits
|
292,978,737 | 291,073,843 | ||||||
Accrued interest payable and other liabilities
|
1,395,147 | 406,361 | ||||||
Total liabilities
|
294,373,884 | 291,480,204 | ||||||
Common Stock - No par value; 12,000,000 shares authorized; Shares issued 4,668,352 at March 31, 2013 and 4,665,690 at December 31, 2012; Shares outstanding 4,448,901 at March 31, 2013 and 4,446,239 shares at December 31, 2012
|
— | — | ||||||
Additional paid in capital
|
28,516,151 | 28,474,951 | ||||||
Retained earnings
|
5,622,776 | 5,157,839 | ||||||
Treasury stock
|
(1,902,439 | ) | (1,902,439 | ) | ||||
Accumulated other comprehensive income, net of income taxes
|
2,037,198 | 2,200,091 | ||||||
Total shareholders' equity
|
34,273,686 | 33,930,442 | ||||||
Total liabilities and shareholders' equity
|
$ | 328,647,570 | $ | 325,410,646 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
Interest and fee income
|
||||||||
Interest and fees on loans
|
$ | 2,708,747 | $ | 2,757,987 | ||||
Interest and dividends on investment securities
|
333,293 | 342,922 | ||||||
Other interest income
|
20,046 | 26,744 | ||||||
Total interest and fee income
|
3,062,086 | 3,127,653 | ||||||
Interest expense
|
||||||||
Interest on deposits
|
101,427 | 132,059 | ||||||
Total interest expense
|
101,427 | 132,059 | ||||||
Net interest income
|
2,960,659 | 2,995,594 | ||||||
Provision for loan losses
|
75,000 | 120,000 | ||||||
Net interest income after provision for
loan losses
|
2,885,659 | 2,875,594 | ||||||
Other income
|
||||||||
Service charges, fees and commissions
|
232,302 | 231,549 | ||||||
Mortgage banking income
|
494,012 | 314,872 | ||||||
Other non-interest income
|
5,105 | 6,627 | ||||||
Total other income
|
731,419 | 553,048 | ||||||
Other expense
|
||||||||
Salaries and employee benefits
|
1,282,083 | 1,226,382 | ||||||
Net occupancy expense
|
327,538 | 333,699 | ||||||
Other operating expenses
|
557,135 | 593,707 | ||||||
Total other expense
|
2,166,756 | 2,153,788 | ||||||
Income before income tax expense
|
1,450,322 | 1,274,854 | ||||||
Income tax expense
|
451,517 | 384,128 | ||||||
Net income
|
$ | 998,805 | $ | 890,726 | ||||
Basic earnings per share
|
$ | 0.22 | $ | 0.20 | ||||
Diluted earnings per share
|
$ | 0.22 | $ | 0.20 | ||||
Weighted average shares outstanding
|
||||||||
Basic
|
4,446,905 | 4,444,943 | ||||||
Diluted
|
4,446,905 | 4,444,943 | ||||||
Cash Dividend Per Share
|
$ | 0.12 | $ | 0.11 |
BANK OF SOUTH CAROLINA CORPORATION AND SUBSIDIARY
|
||||||||
|
||||||||
THREE MONTHS ENDED MARCH 31,
|
||||||||
2013
|
2012
|
|||||||
Net income
|
$ | 998,805 | $ | 890,726 | ||||
Other comprehensive loss, (net of tax: $95,667 and $285,554, respectively)
|
||||||||
Unrealized loss on securities
|
(162,893 | ) | (160,615 | ) | ||||
Other comprehensive loss, net of tax
|
(162,893 | ) | (160,615 | ) | ||||
Total Comprehensive income
|
$ | 835,912 | $ | 730,111 |
BANK OF SOUTH CAROLINA CORPORATION AND SUBSIDIARY
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FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012 (UNAUDITED)
|
ADDITIONAL PAID IN CAPITAL
|
RETAINED EARNINGS
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TREASURY STOCK
|
ACCUMULATED OTHER COMPREHENSIVE INCOME
|
TOTAL
|
||||||||||||||||
December 31, 2011
|
$ | 28,390,929 | $ | 3,491,678 | $ | (1,902,439 | ) | $ | 2,013,701 | $ | 31,993,869 | |||||||||
Net income
|
— | 890,726 | — | — | 890,726 | |||||||||||||||
Other comprehensive income due to unrealized loss on investment securities
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— | — | — | (160,615 | ) | (160,615 | ) | |||||||||||||
Exercise of stock options
|
171 | — | — | — | 171 | |||||||||||||||
Stock-based compensation expense
|
17,943 | — | — | — | 17,943 | |||||||||||||||
Cash dividends ($0.11 per common share)
|
— | (488,946 | ) | — | — | (488,946 | ) | |||||||||||||
March 31, 2012
|
28,409,043 | 3,893,458 | (1,902,439 | ) | 1,853,086 | 32,253,148 | ||||||||||||||
December 31, 2012
|
28,474,951 | 5,157,839 | (1,902,439 | ) | 2,200,091 | 33,930,442 | ||||||||||||||
Net income
|
— | 998,805 | — | — | 998,805 | |||||||||||||||
Other comprehensive income due to unrealized loss on investment Securities
|
— | — | — | (162,893 | ) | (162,893 | ) | |||||||||||||
Exercise of Stock options
|
22,733 | — | — | — | 22,733 | |||||||||||||||
Stock-based compensation expense
|
18,467 | — | — | — | 18,467 | |||||||||||||||
Cash dividends ($0.12 per common share)
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— | (533,868 | ) | — | — | (533,868 | ) | |||||||||||||
March 31, 2013
|
$ | 28,516,151 | $ | 5,622,776 | $ | (1,902,439 | ) | $ | 2,037,198 | $ | 34,273,686 |
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 998,805 | $ | 890,726 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
45,824 | 56,409 | ||||||
Provision for loan losses
|
75,000 | 120,000 | ||||||
Stock-based compensation expense
|
18,467 | 17,943 | ||||||
Net amortization and (accretion) of unearned discounts and premiums on investments
|
105,736 | (95,612 | ) | |||||
Origination of mortgage loans held for sale
|
(21,047,673 | ) | (22,749,190 | ) | ||||
Proceeds from sale of mortgage loans held for sale
|
29,333,577 | 21,863,238 | ||||||
(Increase) decrease in accrued interest receivable and other assets
|
(392,193 | ) | 104,670 | |||||
Increase in accrued interest payable and other liabilities
|
454,918 | 279,250 | ||||||
Net cash provided by operating activities
|
9,592,461 | 487,434 | ||||||
Cash flows from investing activities:
|
||||||||
Purchase of investment securities available for sale
|
(2,305,943 | ) | — | |||||
Maturities of investment securities available for sale
|
2,040,000 | 455,000 | ||||||
Net decrease in loans
|
846,703 | 1,276,159 | ||||||
Purchase of premises, equipment and leasehold improvements, net
|
(48,896 | ) | (19,384 | ) | ||||
Net cash provided by investing activities
|
531,864 | 1,711,775 | ||||||
Cash flows from financing activities:
|
||||||||
Net increase in deposit accounts
|
1,904,894 | 9,143,751 | ||||||
Dividends paid
|
— | (488,943 | ) | |||||
Stock options exercised
|
22,733 | 171 | ||||||
Net cash provided by financing activities
|
1,927,627 | 8,654,979 | ||||||
Net increase in cash and cash equivalents
|
12,051,952 | 10,854,188 | ||||||
Cash and cash equivalents at beginning of period
|
31,041,848 | 52,063,476 | ||||||
Cash and cash equivalents at end of period
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$ | 43,093,800 | $ | 62,971,664 | ||||
Supplemental disclosure of cash flow data:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
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$ | 101,321 | $ | 140,262 | ||||
Income taxes
|
$ | 50,725 | $ | 60,730 | ||||
Supplemental disclosure for non-cash investing and financing activity:
|
||||||||
Change in dividends payable
|
$ | 533,868 | $ | 3 | ||||
Change in unrealized losses on available for sale securities
|
$ | (162,893 | ) | $ | (160,615 | ) |
March 31, 2013
|
||||
Loans Receivable on Non-Accrual
|
||||
Commercial
|
$ | 3,275 | ||
Commercial Real Estate:
|
||||
Commercial Real Estate - Construction
|
— | |||
Commercial Real Estate - Other
|
3,950,364 | |||
Consumer:
|
||||
Consumer Real Estate
|
68,231 | |||
Consumer - Other
|
— | |||
Total
|
$ | 4,021,870 |
December 31, 2012
|
||||
Loans Receivable on Non-Accrual
|
||||
Commercial
|
$ | 4,085 | ||
Commercial Real Estate:
|
||||
Commercial Real Estate - Construction
|
— | |||
Commercial Real Estate - Other
|
3,921,750 | |||
Consumer:
|
||||
Consumer Real Estate
|
67,981 | |||
Consumer - Other
|
— | |||
Total
|
$ | 3,993,816 |
March 31, 2013
|
||||||||||||||||||||||||||||
30-59 Days Past Due
|
60-89 Days Past Due
|
Greater Than 90 Days
|
Total Past Due
|
Current
|
Total Loans Receivable
|
Recorded Investment > 90 Days and Accruing
|
||||||||||||||||||||||
Commercial
|
$ | 802,255 | 1,127,900 | — | 1,930,155 | 53,794,802 | 55,724,957 | — | ||||||||||||||||||||
Commercial Real Estate:
|
||||||||||||||||||||||||||||
Commercial Real Estate -Construction
|
— | — | — | — | 1,730,252 | 1,730,252 | — | |||||||||||||||||||||
Commercial Real Estate -Other
|
2,351 | — | 3,187,290 | 3,189,641 | 102,261,912 | 105,451,553 | — | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer- Real Estate
|
60,651 | — | — | 60,651 | 49,180,655 | 49,241,306 | — | |||||||||||||||||||||
Consumer-Other
|
22,931 | 27 | 1,026 | 23,984 | 4,020,978 | 4,044,962 | 1,026 | |||||||||||||||||||||
Total
|
$ | 888,188 | 1,127,927 | 3,188,316 | 5,204,431 | 210,988,599 | 216,193,030 | 1,026 |
December 31, 2012
|
||||||||||||||||||||||||||||
30-59 Days Past Due
|
60-89 Days Past Due
|
Greater Than 90 Days
|
Total Past Due
|
Current
|
Total Loans Receivable
|
Recorded Investment > 90 Days and Accruing
|
||||||||||||||||||||||
Commercial
|
$ | 104,766 | — | — | 104,766 | 54,559,520 | 54,664,286 | — | ||||||||||||||||||||
Commercial Real Estate:
|
||||||||||||||||||||||||||||
Commercial Real Estate -Construction
|
— | — | — | — | 2,276,532 | 2,276,532 | — | |||||||||||||||||||||
Commercial Real Estate - Other
|
93,487 | 336,315 | 3,074,397 | 3,504,199 | 105,071,216 | 108,575,415 | — | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer- Real Estate
|
— | — | — | — | 46,703,454 | 46,703,454 | — | |||||||||||||||||||||
Consumer-Other
|
6,549 | — | 985 | 7,534 | 4,901,403 | 4,908,937 | — | |||||||||||||||||||||
Total
|
$ | 204,802 | 336,315 | 3,075,382 | 3,616,499 | 213,512,125 | 217,128,624 | — |
Impaired and Restructured Loans
For the Three Months Ended March 31, 2013
|
||||||||||||||||||||
With no related allowance recorded:
|
Unpaid Principal Balance
|
Recorded Investments
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||||
Commercial
|
$ | 296,350 | $ | 131,749 | $ | — | $ | 146,596 | $ | 53,216 | ||||||||||
Commercial
Real Estate
|
11,281,464 | 8,056,896 | — | 8,854,164 | 2,273,039 | |||||||||||||||
Consumer
Real Estate
|
319,536 | 310,872 | — | 315,226 | 65,139 | |||||||||||||||
Consumer
Other
|
— | — | — | — | — | |||||||||||||||
Total
|
$ | 11,897,350 | $ | 8,499,517 | $ | — | $ | 9,315,986 | $ | 2,391,394 | ||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$ | 1,360,535 | $ | 1,249,849 | $ | 1,249,849 | $ | 1,284,226 | $ | 183,244 | ||||||||||
Commercial
Real Estate
|
908,269 | 825,063 | 257,904 | 838,568 | 220,680 | |||||||||||||||
Consumer
Real Estate
|
879,292 | 879,419 | 460,997 | 879,389 | 137,741 | |||||||||||||||
Consumer
Other
|
50,000 | 49,443 | 49,443 | 49,547 | 6,470 | |||||||||||||||
Total
|
$ | 3,198,096 | $ | 3,003,774 | $ | 2,018,193 | $ | 3,051,730 | $ | 548,135 | ||||||||||
Grand Total
|
15,095,446 | 11,503,291 | 2,018,193 | 12,367,716 | 2,939,529 |
Impaired and Restructured Loans
For the Year Ended December 31, 2012
|
||||||||||||||||||||
With no related allowance recorded:
|
Unpaid Principal Balance
|
Recorded Investments
|
Related Allowance
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||||
Commercial
|
$ | 296,350 | $ | 140,575 | $ | — | $ | 150,913 | $ | 51,151 | ||||||||||
Commercial
Real Estate
|
8,733,779 | 5,578,231 | — | 6,499,933 | 2,019,907 | |||||||||||||||
Consumer
Real Estate
|
319,536 | 311,543 | — | 315,763 | 61,381 | |||||||||||||||
Consumer
Other
|
— | — | — | — | — | |||||||||||||||
Total
|
$ | 9,349,665 | $ | 6,030,349 | $ | — | $ | 6,966,609 | $ | 2,132,439 | ||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
$ | 1,360,535 | $ | 1,251,462 | $ | 1,251,462 | $ | 1,287,204 | $ | 168,739 | ||||||||||
Commercial
Real Estate
|
3,355,954 | 3,287,773 | 169,243 | 3,295,385 | 363,187 | |||||||||||||||
Consumer
Real Estate
|
882,750 | 879,252 | 528,510 | 879,391 | 344,262 | |||||||||||||||
Consumer
Other
|
50,000 | 49,443 | 49,443 | 49,570 | 6,009 | |||||||||||||||
Total
|
$ | 5,649,239 | $ | 5,467,930 | $ | 1,998,658 | $ | 5,511,550 | $ | 882,197 | ||||||||||
Grand Total
|
14,998,904 | 11,498,279 | 1,998,658 | 12,478,159 | 3,014,636 |
March 31, 2013
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
Construction
|
Commercial
Real Estate
Other
|
Consumer
Real Estate
|
Consumer
Other
|
Total
|
|||||||||||||||||||
Pass
|
$ | 49,741,368 | $ | 1,262,735 | $ | 91,724,990 | $ | 45,387,978 | $ | 3,495,796 | $ | 191,612,867 | ||||||||||||
Watch
|
3,011,491 | — | 2,236,015 | 1,660,762 | 244,756 | 7,153,024 | ||||||||||||||||||
OAEM
|
591,687 | 467,517 | 2,910,787 | 950,520 | 137,976 | 5,058,487 | ||||||||||||||||||
Sub-Standard
|
2,380,411 | — | 8,579,761 | 1,242,046 | 166,434 | 12,368,652 | ||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | ||||||||||||||||||
Loss
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
$ | 55,724,957 | $ | 1,730,252 | $ | 105,451,553 | $ | 49,241,306 | $ | 4,044,962 | $ | 216,193,030 |
December 31, 2012
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
Construction
|
Commercial
Real Estate
Other
|
Consumer
Real Estate
|
Consumer
Other
|
Total
|
|||||||||||||||||||
Pass
|
$ | 47,803,837 | $ | 1,806,765 | $ | 94,779,321 | $ | 41,738,572 | $ | 4,197,256 | $ | 190,325,751 | ||||||||||||
Watch
|
4,551,804 | — | 2,554,099 | 2,971,631 | 344,583 | 10,422,117 | ||||||||||||||||||
OAEM
|
561,563 | 469,767 | 4,957,130 | 650,412 | 205,638 | 6,844,510 | ||||||||||||||||||
Sub-Standard
|
1,747,082 | — | 6,284,865 | 1,342,839 | 161,460 | 9,536,246 | ||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | ||||||||||||||||||
Loss
|
— | — | — | — | — | — | ||||||||||||||||||
Total
|
$ | 54,664,286 | $ | 2,276,532 | $ | 108,575,415 | $ | 46,703,454 | $ | 4,908,937 | $ | 217,128,624 |
March 31, 2013
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Consumer
Real Estate
|
Consumer
Other
|
Unallocated
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses
|
||||||||||||||||||||||||
Beginning Balance
|
$ | 1,478,450 | $ | 584,646 | $ | 890,728 | $ | 102,953 | $ | 376,067 | $ | 3,432,844 | ||||||||||||
Charge-offs
|
(93,953 | ) | — | — | — | — | (93,953 | ) | ||||||||||||||||
Recoveries
|
1,489 | 3,000 | — | 573 | — | 5,062 | ||||||||||||||||||
Provisions
|
114,069 | 66,637 | (49,317 | ) | (21,196 | ) | (35,193 | ) | 75,000 | |||||||||||||||
Ending Balance
|
1,500,055 | 654,283 | 841,411 | 82,330 | 340,874 | 3,418,953 | ||||||||||||||||||
Ending Balances:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
1,249,849 | 257,904 | 460,997 | 49,443 | — | 2,018,193 | ||||||||||||||||||
Collectively evaluated for impairment
|
250,206 | 396,379 | 380,414 | 32,887 | 340,874 | 1,400,760 | ||||||||||||||||||
Ending Balances:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
1,381.598 | 8,881,959 | 1,190,291 | 49,443 | — | 11,503,291 | ||||||||||||||||||
Collectively evaluated for impairment
|
$ | 54,343,359 | $ | 98,299,846 | $ | 48,051,015 | $ | 3,995,519 | $ | — | $ | 204,689,739 |
December 31, 2012
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Consumer
Real Estate
|
Consumer
Other
|
Unallocated
|
Total
|
|||||||||||||||||||
Allowance for Loan Losses
|
||||||||||||||||||||||||
Beginning Balance
|
$ | 1,586,510 | $ | 420,367 | $ | 450,338 | $ | 91,402 | $ | 558,267 | $ | 3,106,884 | ||||||||||||
Charge-offs
|
(60,042 | ) | (43,734 | ) | (56,487 | ) | (12,025 | ) | — | (172,288 | ) | |||||||||||||
Recoveries
|
109,569 | 13,228 | 10,000 | 15,451 | — | 148,248 | ||||||||||||||||||
Provisions
|
(157,587 | ) | (194,785 | ) | 486,877 | 8,125 | (182,200 | ) | 350,000 | |||||||||||||||
Ending Balance
|
1,478,450 | 584,646 | 890,728 | 102,953 | 376,067 | 3,432,844 | ||||||||||||||||||
Ending Balances:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
1,251,462 | 169,243 | 528,510 | 49,443 | — | 1,998,658 | ||||||||||||||||||
Collectively evaluated for impairment
|
226,988 | 415,403 | 362,218 | 53,510 | 376,067 | 1,434,186 | ||||||||||||||||||
Ending Balance:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
1,392,037 | 8,866,004 | 1,190,795 | 49,443 | — | 11,498,279 | ||||||||||||||||||
Collectively evaluated for impairment
|
$ | 53,272,249 | $ | 101,985,943 | $ | 45,512,659 | $ | 4,859,494 | $ | — | $ | 205,630,345 |
Modification
|
||||||||||||
As of March 31, 2013
|
||||||||||||
Number of
Contracts
|
Pre-Modification Outstanding
Recorded Investment
|
Post-Modification Outstanding
Recorded Investment
|
||||||||||
Troubled Debt Restructurings
|
||||||||||||
Commercial
|
1 | $ | 127,790 | $ | 127,790 | |||||||
Commercial Real Estate
|
3 | $ | 1,363,762 | $ | 1,363,762 | |||||||
Commercial Real Estate Construction
|
— | $ | $ | — | ||||||||
Consumer Real Estate –Prime
|
1 | $ | 110,473 | $ | 110,473 | |||||||
Consumer Real Estate-Subprime
|
— | $ | — | $ | — | |||||||
Consumer Other
|
— | $ | — | $ | — | |||||||
Troubled Debt Restructurings That Subsequently Defaulted
|
||||||||||||
Commercial
|
— | $ | — | $ | — | |||||||
Commercial Real Estate
|
— | $ | — | $ | — | |||||||
Commercial Real Estate Construction
|
— | $ | — | $ | — | |||||||
Consumer Real Estate -Prime
|
— | $ | — | $ | — | |||||||
Consumer Real Estate-Subprime
|
— | $ | — | $ | — | |||||||
Consumer Other
|
— | $ | — | $ | — |
Modification
|
||||||||||||
As of December 31, 2012
|
||||||||||||
Number of
Contracts
|
Pre-Modification Outstanding
Recorded Investment
|
Post-Modification Outstanding
Recorded Investment
|
||||||||||
Troubled Debt Restructurings
|
||||||||||||
Commercial
|
1 | $ | 134,814 | $ | 134,814 | |||||||
Commercial Real Estate
|
3 | $ | 1,371,983 | $ | 1,371,983 | |||||||
Commercial Real Estate Construction
|
— | $ | — | $ | — | |||||||
Consumer Real Estate –Prime
|
1 | $ | 111,481 | $ | 111,481 | |||||||
Consumer Real Estate-Subprime
|
— | $ | — | $ | — | |||||||
Consumer Other
|
— | $ | — | $ | — | |||||||
Troubled Debt Restructurings That Subsequently Defaulted
|
||||||||||||
Commercial
|
— | $ | — | $ | — | |||||||
Commercial Real Estate
|
— | $ | — | $ | — | |||||||
Commercial Real Estate Construction
|
— | $ | — | $ | — | |||||||
Consumer Real Estate -Prime
|
— | $ | — | $ | — | |||||||
Consumer Real Estate-Subprime
|
— | $ | — | $ | — | |||||||
Consumer Other
|
— | $ | — | $ | — |
Three Months Ended March 31, 2013
|
Options
|
Weighted Average Exercise Price
|
||||||
Balance at January 1, 2013
|
174,467 | $ | 11.20 | |||||
Forfeited
|
(3,600 | ) | 12.10 | |||||
Exercised
|
(2,662 | ) | 8.54 | |||||
Balance at March 31, 2013
|
168,205 | $ | 11.22 |
Three months Ended March 31, 2012
|
Options
|
Weighted Average Exercise Price
|
||||||
Balance at January 1, 2012
|
168,266 | $ | 11.23 | |||||
Exercised
|
(20 | ) | 8.54 | |||||
Balance at March 31, 2012
|
168,246 | $ | 11.23 | |||||
Options exercisable at March 31, 2013
|
12,880 | $ | 12.61 |
FOR THE THREE MONTHS ENDED MARCH 31, 2013
|
||||||||||||
INCOME
(NUMERATOR)
|
SHARES
(DENOMINATOR)
|
PER SHARE
AMOUNT
|
||||||||||
Net income
|
$ | 998,805 | ||||||||||
Basic income available to common shareholders
|
$ | 998,805 | 4,446,905 | $ | .22 | |||||||
Effect of dilutive options
|
— | |||||||||||
Diluted income available to common shareholders
|
$ | 998,805 | 4,446,905 | $ | .22 |
FOR THE THREE MONTHS ENDED MARCH 31, 2012
|
||||||||||||
INCOME
(NUMERATOR)
|
SHARES
(DENOMINATOR)
|
PER SHARE
AMOUNT
|
||||||||||
Net income
|
$ | 890,726 | ||||||||||
Basic income available to common shareholders
|
$ | 890,726 | 4,444,943 | $ | .20 | |||||||
Effect of dilutive options
|
— | |||||||||||
Diluted income available to common shareholders
|
$ | 890,726 | 4,444,943 | $ | .20 |
Level 1
|
Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as US Treasuries and money market funds.
|
Level 2
|
Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans.
|
Level 3
|
Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
|
Balance
at
March 31, 2013
|
||||||||||||||||
Quoted Market Price In Active Markets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Total
|
|||||||||||||
US Treasury Note
|
$ | 6,188,438 | $ | — | $ | — | $ | 6,188,438 | ||||||||
Government Sponsored Enterprises
|
$ | — | $ | 18,250,090 | $ | — | $ | 18,250,090 | ||||||||
Municipal Securities
|
$ | — | $ | 33,977,335 | $ | — | $ | 33,977,335 | ||||||||
Total
|
$ | 6,188,438 | $ | 52,227,425 | $ | — | $ | 58,415,863 |
Balance
at
December 31, 2012
|
||||||||||||||||
Quoted Market Price In Active Markets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Total
|
|||||||||||||
US Treasury Note
|
$ | 6,213,750 | $ | — | $ | — | $ | 6,213,750 | ||||||||
Government Sponsored Enterprises
|
$ | — | $ | 18,344,032 | $ | — | $ | 18,344,032 | ||||||||
Municipal Securities
|
$ | — | $ | 33,956,434 | $ | — | $ | 33,956,434 | ||||||||
Total
|
$ | 6,213,750 | $ | 52,300,466 | $ | — | $ | 58,514,216 |
1)
|
Any loan on non-accrual
|
2)
|
Any loan that is a troubled debt restructuring
|
3)
|
Any loan over 60 days past due
|
4)
|
Any loan rated sub-standard, doubtful, or loss
|
5)
|
Excessive principal extensions are executed
|
6)
|
If the Bank is provided information that indicates the Bank will not collect all principal and interest as scheduled
|
March 31, 2013
|
||||||||||||||||
Quoted Market Price In Active Markets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Total
|
|||||||||||||
Impaired loans
|
$ | — | $ | — | $ | 9,485,098 | $ | 9,485,098 | ||||||||
Mortgage loans held for sale
|
— | 10,193,974 | — | 10,193,974 | ||||||||||||
Total
|
$ | — | $ | 10,193,974 | $ | 9,485,098 | $ | 19,679,072 |
December 31, 2012
|
||||||||||||||||
Quoted Market Price In Active Markets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
Balance
at
December 31, 2012
|
|||||||||||||
Impaired loans
|
$ | — | $ | — | $ | 9,499,621 | $ | 9,499,621 | ||||||||
Mortgage loans held for sale
|
— | 18,479,878 | — | 18,479,878 | ||||||||||||
Total
|
$ | — | $ | 18,479,878 | $ | 9,499,621 | $ | 27,979,499 |
Inputs
|
||||||
Valuation Technique
|
Unobservable Input
|
General Range of Inputs
|
||||
Nonrecurring measurements:
|
||||||
Impaired Loans
|
Discounted Appraisals
|
Collateral Discounts
|
0-25%
|
a.
|
Cash and due from banks, interest bearing deposits in other banks and federal funds sold
|
The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns.
|
|
b.
|
Investment securities available for sale
|
The fair value of investment securities is derived from quoted market prices.
|
|
c.
|
Loans
|
The carrying values of variable rate consumer and commercial loans and consumer and commercial loans with remaining maturities of three months or less, approximate fair value. The fair values of fixed rate consumer and commercial loans with maturities greater than three months are determined using a discounted cash flow analysis and assume the rate being offered on these types of loans by the Company at March 31, 2013 and December 31, 2012, approximate market.
|
|
The carrying value of mortgage loans held for sale approximates fair value.
|
|
For lines of credit, the carrying value approximates fair value.
|
|
d.
|
Deposits
|
The estimated fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of time deposits is estimated by discounting contractual cash flows, by applying interest rates currently being offered on the deposit products. The fair value estimates for deposits do not include the benefit that results from the low cost funding provided by the deposit liabilities as compared to the cost of alternative forms of funding (deposit base intangibles).
|
|
e.
|
Short-term borrowings
|
The carrying amount approximates fair value due to the short-term nature of these instruments.
|
March 31, 2013
|
||||||||||||||||||||
Fair Value Measurement
|
||||||||||||||||||||
Carrying
Amount
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||||||
Financial Instruments-Assets
|
||||||||||||||||||||
Loans
|
$ | 216,193,030 | $ | 216,465,300 | $ | — | $ | — | $ | 216,465,300 | ||||||||||
Financial Instruments- Liabilities
|
||||||||||||||||||||
Deposits
|
$ | 292,978,737 | $ | 292,979,502 | $ | — | $ | 292,979,502 | $ | — |
December 31, 2012
|
||||||||||||||||||||
Fair Value Measurement
|
||||||||||||||||||||
Carrying Amount
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||||||
Financial Instruments-Assets
|
||||||||||||||||||||
Loans
|
$ | 217,128,624 | $ | 217,432,537 | $ | — | $ | — | $ | 217,432,537 | ||||||||||
Financial Instruments- Liabilities
|
||||||||||||||||||||
Deposits
|
$ | 291,073,843 | $ | 291,094,742 | $ | — | $ | 291,094,742 | $ | — |
March 31, 2013
|
||||||||
Notional Amount
|
Fair Value
|
|||||||
Off Balance Sheet Financial
|
||||||||
Instruments:
|
||||||||
Commitments to extend credit
|
$ | 57,583,876 | $ | — | ||||
Standby letters of credit
|
734,712 | — |
December 31, 2012
|
||||||||
Notional Amount
|
Fair Value
|
|||||||
Off Balance Sheet Financial
|
||||||||
Instruments:
|
||||||||
Commitments to extend credit
|
$ | 51,444,731 | $ | — | ||||
Standby letters of credit
|
749,712 | — |
·
|
Risk from changes in economic, monetary policy, and industry conditions
|
|
·
|
Changes in interest rates, shape of the yield curve, deposit rates, the net interest margin and funding sources
|
|
·
|
Market risk (including net income at risk analysis and economic value of equity risk analysis) and inflation
|
|
·
|
Risk inherent in making loans including repayment risks and changes in the value of collateral
|
·
|
Loan growth, the adequacy of the allowance for loan losses, provisions for loan losses, and the assessment of problem loans
|
|
·
|
Level, composition, and re-pricing characteristics of the securities portfolio
|
|
·
|
Deposit growth, change in the mix or type of deposit products and services
|
|
·
|
Continued availability of senior management
|
|
·
|
Technological changes
|
|
·
|
Ability to control expenses
|
|
·
|
Changes in compensation
|
|
·
|
Risks associated with income taxes including potential for adverse adjustments
|
|
·
|
Changes in accounting policies and practices
|
|
·
|
Changes in regulatory actions, including the potential for adverse adjustments
|
|
·
|
Recently enacted or proposed legislation
|
|
·
|
Current weakness in the financial service industry.
|
March 31,
|
December 31,
|
|||||||||||
2013
|
2012
|
2012
|
||||||||||
Commercial loans
|
$ | 55,724,957 | $ | 53,042,238 | $ | 54,664,286 | ||||||
Commercial real estate:
|
||||||||||||
Commercial real estate construction
|
1,730,252 | 3,250,384 | 2,276,532 | |||||||||
Commercial real estate other
|
105,451,553 | 106,764,460 | 108,575,415 | |||||||||
Consumer:
|
||||||||||||
Consumer real estate
|
49,241,306 | 44,980,357 | 46,703,454 | |||||||||
Consumer other
|
4,044,962 | 4,403,143 | 4,908,937 | |||||||||
216,193,030 | 212,440,582 | 217,128,624 | ||||||||||
Allowance for loan losses
|
(3,418,953 | ) | (3,234,514 | ) | (3,432,844 | ) | ||||||
Loans, net
|
$ | 212,774,077 | $ | 209,206,068 | $ | 213,695,780 |
Percentage of Loans
|
March 31,
|
December 31,
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
Commercial loans
|
25.77 | % | 24.97 | % | 25.18 | % | ||||||
Commercial real estate construction
|
.80 | % | 1.53 | % | 1.05 | % | ||||||
Commercial real estate other
|
48.78 | % | 50.26 | % | 50.00 | % | ||||||
Consumer real estate
|
22.78 | % | 21.17 | % | 21.51 | % | ||||||
Consumer other
|
1.87 | % | 2.07 | % | 2.26 | % | ||||||
Total
|
100.00 | % | 100.00 | % | 100.00 | % |
INVESTMENT PORTFOLIO
|
||||||||||||
March 31, 2013
|
March 31, 2012
|
December 31, 2012
|
||||||||||
US Treasury Notes
|
$ | 6,188,438 | $ | 6,261,562 | $ | 6,213,750 | ||||||
Government-Sponsored Enterprises
|
18,250,090 | 18,377,605 | 18,344,032 | |||||||||
Municipal Securities
|
33,977,335 | 34,107,436 | 33,956,434 | |||||||||
$ | 58,415,863 | $ | 58,746,603 | $ | 58,514,216 | |||||||
US Treasury Notes
|
10.59 | % | 10.66 | % | 10.62 | % | ||||||
Government-Sponsored Enterprises
|
31.24 | % | 31.28 | % | 31.35 | % | ||||||
Municipal Securities
|
58.17 | % | 58.06 | % | 58.03 | % | ||||||
100.00 | % | 100.00 | % | 100.00 | % |
MARCH 31, 2013
|
||||||||||||||||
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS
|
GROSS
UNREALIZED
LOSSES
|
ESTIMATED
FAIR
VALUE
|
|||||||||||||
U.S. Treasury Notes
|
$ | 6,084,091 | $ | 104,347 | $ | — | $ | 6,188,438 | ||||||||
Government-Sponsored Enterprises
|
17,753,389 | 496,701 | — | 18,250,090 | ||||||||||||
Municipal Securities
|
31,344,735 | 2,641,606 | 9,006 | 33,977,335 | ||||||||||||
Total
|
$ | 55,182,215 | $ | 3,242,654 | $ | 9,006 | $ | 58,415,863 |
DECEMBER 31, 2012
|
||||||||||||||||
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS
|
GROSS
UNREALIZED
LOSSES
|
ESTIMATED
FAIR
VALUE
|
|||||||||||||
U.S. Treasury Notes
|
$ | 6,097,750 | $ | 116,000 | $ | — | $ | 6,213,750 | ||||||||
Government-Sponsored Enterprises
|
17,822,858 | 521,174 | — | 18,344,032 | ||||||||||||
Municipal Securities
|
31,101,401 | 2,858,625 | 3,592 | 33,956,434 | ||||||||||||
Total
|
$ | 55,022,009 | $ | 3,495,799 | $ | 3,592 | $ | 58,514,216 |
March 31, 2013
|
||||||||
AMORTIZED
COST
|
ESTIMATED
FAIR
VALUE
|
|||||||
Due in one year or less
|
$ | 1,928,509 | $ | 1,941,867 | ||||
Due in one year to five years
|
31,699,870 | 32,791,903 | ||||||
Due in five years to ten years
|
13,327,268 | 14,771,812 | ||||||
Due in ten years and over
|
8,226,568 | 8,910,281 | ||||||
Total
|
$ | 55,182,215 | $ | 58,415,863 |
December 31, 2012
|
||||||||
AMORTIZED
COST
|
ESTIMATED
FAIR
VALUE
|
|||||||
Due in one year or less
|
$ | 2,331,067 | $ | 2,336,933 | ||||
Due in one year to five years
|
32,183,058 | 33,321,740 | ||||||
Due in five years to ten years
|
11,407,945 | 12,718,115 | ||||||
Due in ten years and over
|
9,099,939 | 10,137,428 | ||||||
Total
|
$ | 55,022,009 | $ | 58,514,216 |
March 31,
|
December 31,
|
|||||||||||
2013
|
2012
|
2012
|
||||||||||
Non-interest bearing demand
|
$ | 86,883,466 | $ | 77,565,884 | $ | 83,447,675 | ||||||
Interest bearing demand
|
76,682,220 | 61,161,565 | 77,441,588 | |||||||||
Money market accounts
|
52,807,591 | 99,169,593 | 54,450,828 | |||||||||
Certificates of deposit $100,000 and over
|
42,410,373 | 40,178,883 | 40,903,886 | |||||||||
Other time deposits
|
15,815,284 | 17,022,278 | 15,909,164 | |||||||||
Other savings deposits
|
18,379,803 | 15,173,063 | 18,920,702 | |||||||||
Total Deposits
|
$ | 292,978,737 | $ | 310,271,266 | $ | 291,073,843 |
Percentage of Deposits
|
March 31,
|
December 31,
|
||||||||||
2013
|
2012
|
2012
|
||||||||||
Non-interest bearing demand
|
29.66 | % | 25.00 | % | 28.67 | % | ||||||
Interest bearing demand
|
26.17 | % | 19.71 | % | 26.60 | % | ||||||
Money Market accounts
|
18.02 | % | 31.96 | % | 18.71 | % | ||||||
Certificates of deposit $100,000 and over
|
14.48 | % | 12.95 | % | 14.05 | % | ||||||
Other time deposits
|
5.40 | % | 5.49 | % | 5.47 | % | ||||||
Other savings deposits
|
6.27 | % | 4.89 | % | 6.50 | % | ||||||
Total Deposits
|
100.00 | % | 100.00 | % | 100.00 | % |
1)
|
Specific Reserve analysis for impaired loans based on Financial Accounting Standards Board (FASB) ASC 310-10-35.
|
|
2)
|
General reserve analysis applying historical loss rates based on FASB ASC 450-20.
|
|
3)
|
Qualitative or environmental factors.
|
1)
|
Any loan on non-accrual
|
|
2)
|
Any loan that is a troubled debt restructuring
|
|
3)
|
Any loan over 60 days past due
|
|
4)
|
Any loan rated sub-standard, doubtful, or loss
|
|
5)
|
Excessive principal extensions are executed
|
|
6)
|
If the Bank is provided information that indicates the Bank will not collect all principal and interest as scheduled
|
1)
|
Portfolio risk
|
a. |
Levels and trends in delinquencies and impaired loans
|
|
b. |
Trends in volume and terms of loans
|
|
c. |
Over-margined real estate lending risk
|
2)
|
National and local economic trends and conditions
|
3)
|
Effects of changes in risk selection and underwriting practices
|
4)
|
Experience, ability and depth of lending management staff
|
5)
|
Industry conditions
|
6)
|
Effects of changes in credit concentrations
|
a.
|
Loan concentration
|
|
b.
|
Geographic concentration
|
|
c.
|
Regulatory concentration
|
7)
|
Loan and credit administration risk
|
a.
|
Collateral documentation
|
|
b.
|
Insurance Risk
|
|
c.
|
Maintenance of financial information risk
|
March 31, 2013
|
March 31, 2012
|
|||||||||||||||
Allowance by loan type
|
Percentage of loans to total loans
|
Allowance by loan type
|
Percentage of loans to total loans
|
|||||||||||||
Commercial Loans
|
$ | 1,337,967 | 26 | % | $ | 1,575,347 | 25 | % | ||||||||
Commercial Real Estate
|
368,395 | 49 | % | 303,213 | 52 | % | ||||||||||
Consumer real estate
|
693,705 | 23 | % | 564,338 | 21 | % | ||||||||||
Consumer other
|
70,473 | 2 | % | 85,887 | 2 | % | ||||||||||
Unallocated
|
948,413 | 0 | % | 705,729 | 0 | % | ||||||||||
Total
|
$ | 3,418,953 | 100 | % | $ | 3,234,514 | 100 | % |
1.
|
The Consolidated Financial Statements are included in this Form 10-Q and listed on pages as indicated.
|
Page
|
||||
(1)
|
Consolidated Balance Sheets
|
3
|
||
(2)
|
Consolidated Statements of Income
|
4
|
||
(3)
|
Consolidated Statements of Comprehensive Income
|
5
|
||
(4)
|
Consolidated Statements of Shareholders’ Equity
|
6
|
||
(4)
|
Consolidated Statements of Cash Flows
|
7
|
||
(5)
|
Notes to Consolidated Financial Statements
|
8-25
|
2.
|
Exhibits
|
||
2.0
|
Plan of Reorganization (Filed with 1995 10-KSB)
|
||
3.0
|
Articles of Incorporation of the Registrant (Filed with 1995 10-KSB)
|
||
3.1
|
By-laws of the Registrant (Filed with 1995 10-KSB)
|
||
3.2
|
Amendments to the Articles of Incorporation of the Registrant (Filed with Form S on June 23, 2012)
|
||
4.0
|
2012 Proxy Statement (Filed with 2012 10-K)
|
||
10.0
|
Lease Agreement for 256 Meeting Street (Filed with 1995 10-KSB)
|
||
10.1
|
Sublease Agreement for Parking Facilities at 256 Meeting Street (Filed with 1995 10-KSB)
|
||
10.2
|
Lease Agreement for 100 N. Main Street, Summerville, SC (Filed with 1995 10-KSB)
|
||
10.3
|
Lease Agreement for 1337 Chuck Dawley Blvd., Mt. Pleasant, SC (Filed with 1995 10-KSB)
|
||
10.4
|
Lease Agreement for 1071 Morrison Drive, Charleston, SC (Filed With 2010 10-K)
|
||
Lease Agreement for 1071 Morrison Drive, Charleston, SC (Incorporated Herein)
|
|||
10.5
|
1998 Omnibus Stock Incentive Plan (Filed with 2008 10-K/A)
|
||
2010 Omnibus Stock Incentive Plan (Filed with 2010 Proxy Statement)
|
|||
10.6
|
Employee Stock Ownership Plan (Filed with 2008 10-K/A)
|
||
Employee Stock Ownership Plan, Restated (Filed with 2012 Proxy Statement)
|
|||
10.7
|
2010
Omnibus Incentive Stock Option Plan (Filed with 2010 Proxy Statement)
|
||
14.0
|
Code of Ethics (Filed with 2004 10-KSB)
|
||
21.0
|
List of Subsidiaries of the Registrant (Filed with 1995 10-KSB)
|
||
The Registrant's only subsidiary is The Bank of South Carolina (Filed with 1995 10-KSB)
|
31.1
|
|||
31.2
|
|||
32.1
|
|||
32.2
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
BANK OF SOUTH CAROLINA CORPORATION
|
||
May 13, 2013
|
||
BY:
|
/s/ Fleetwood S. Hassell
|
|
Fleetwood S. Hassell
|
||
President/Chief Executive Officer
|
||
BY:
|
/s/ Sheryl G. Sharry
|
|
Sheryl G. Sharry
|
||
Chief Financial Officer/
|
||
Executive Vice President
|
1.
|
I have reviewed this quarterly report on Form 10-Q of the Bank of South Carolina Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this report.
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within the entity, particularly during the period in which this report is being prepared;
|
||
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||
d)
|
Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
May 13, 2013
|
|
/s/Fleetwood S. Hassell
|
|
Fleetwood S. Hassell
|
|
President/Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of the Bank of South Carolina Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for the periods presented in this report.
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within the entity, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
May 13, 2013
|
|
/s/Sheryl G. Sharry
|
|
Sheryl G. Sharry
|
|
Chief Financial Officer/
|
|
Executive Vice President
|
1.
|
the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
BY:
|
/s/Fleetwood S. Hassell
|
|
Fleetwood S. Hassell
|
||
President/Chief Executive Officer
|
1.
|
the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and
|
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
BY: |
/s/Sheryl G. Sharry
|
|
Sheryl G. Sharry
|
||
Chief Financial Officer/
|
||
Executive Vice President
|