Bank of South Carolina Signals Confidence with New Dividend and Share Buyback Plan

Dividend and buyback announced, a clear push toward shareholder returns

Bank of South Carolina Corporation (BKSC) this week told investors it will start paying a quarterly dividend of $0.23 a share and that its board has authorized a program to repurchase shares. Those two steps are the kind of moves that directly matter to income and total-return investors: the dividend hands cash to shareholders on a regular basis, while a buyback can lift per-share earnings and reduce the share count over time.

How the $0.23 payout will work and what yield could look like

The company announced a quarterly dividend of $0.23 per share and named a record date in the release. The record date determines who is eligible to receive the dividend — if you own the shares on that date you are entitled to the payout. The company did not provide an exact payment date in the headline summary; shareholders should check the company’s full notice or upcoming filings for the precise payment and the ex-dividend date (the date you must own shares before to collect the dividend).

To turn the quarterly number into an annual yield, multiply by four and divide by the current share price. So the annualized dividend would be $0.92 per share (0.23 x 4). That produces very different yields depending on the stock price. For example:

• If BKSC traded at $5.00, the dividend would imply an annual yield near 18%.
• If it traded at $10.00, the yield would be about 9.2%.
• If it traded at $15.00, the yield would be roughly 6.1%.

These are illustrative math examples; the real yield depends on the market price when you look. Also note that the dividend is classified in the company’s announcement as regular (recurring) rather than a one-off special payment, which matters for investors who prize steady income.

What the repurchase program covers and why it matters for capital

The board also authorized a share repurchase program in the same announcement. The press release described the program as a tool to return excess capital to shareholders, but it did not lay out every operational detail in the headline summary — such as a firm dollar cap, a set number of shares, or a fixed timetable. Companies often authorize repurchases for a one- to three-year window or until a stated dollar amount is reached; specifics are typically in the full press release or an SEC filing.

Why this matters for a bank: regulators and examiners watch capital levels closely. A bank can buy back shares only if it keeps regulatory capital above required minimums. When a bank announces both a dividend and a buyback, it usually signals the board believes capital is strong enough to support both shareholder returns and ongoing lending activity.

Illustrative example: if a bank had a market value of $200 million and authorized repurchases totaling $10 million, that would equal 5% of market value — a meaningful but not massive reduction in outstanding shares. The exact boost to earnings-per-share (EPS) depends on the size of the repurchases relative to outstanding shares and the bank’s earnings trend.

Market implications for BKSC shares and the OTCQX factor

This news is likely to be received as a cautious positive by investors who focus on income and capital returns. The dividend creates an immediate income hook; the buyback suggests management prefers returning cash rather than hoarding it on the balance sheet.

Two practical points for investors: first, BKSC trades on the OTCQX market, which typically has thinner liquidity than major exchanges. That can make large orders move the price and widen spreads. Second, buybacks reduce share count and can raise EPS over time if earnings stay steady — but the magnitude depends on how large the repurchase program actually is.

Short-term market reaction often depends on whether investors see the dividend as sustainable. If future earnings or capital levels turn shaky, the bank could be forced to cut the dividend. For now, the move reads as modestly positive: it rewards shareholders and signals confidence, but it is not a dramatic capital redeployment like a very large one-off special dividend or an aggressive multi-year repurchase.

Company comment and a quick profile of the bank

In its announcement, management framed the actions as part of a broader approach to return excess capital to shareholders while maintaining sufficient regulatory cushion. That tone is common among community and regional banks that have rebuilt capital since the last stress cycles.

Bank of South Carolina Corporation (BKSC) is a regional bank holding company focused on commercial and consumer banking in its local footprint. Its business mix is largely traditional — deposits, commercial loans, and mortgage activity — and recent performance has shown steady loan growth and measured credit quality, according to its public statements earlier this year.

Risks, upcoming catalysts and what investors should watch next

Key risks: regulators could restrain buybacks if capital weakens, credit losses could erode earnings, and OTCQX liquidity can magnify volatility. Also, dividends on small bank stocks can change quickly if earnings slip or loan losses rise.

Watch for these near-term items: the company’s detailed press release and any 8-K that gives the full buyback parameters, the ex-dividend and payment dates, the next quarterly earnings report (which will show whether earnings support the payout), and any regulatory filings that disclose capital ratios. Together those publications will tell you whether this is a sustainable income stream or a tactical, one-time return of excess capital.

Bottom line: the combination of a regular quarterly dividend and a board-authorized repurchase program is a positive signal that management believes capital is sufficient and that shareholders should start seeing returns. Still, the size of the buyback and the bank’s upcoming earnings and capital filings will determine how meaningful the actions are for total-return investors.

Sources

• prnewswire.com