Officials with the Bank of South Carolina Corp. have opted to temporarily suspend the company’s third-quarter cash dividend, saying it will put the money toward its loan-loss reserves, according to The Charleston Post and Courier.
Executives said they expect to reinstate the dividend in the fourth quarter. The community bank had been paying a quarterly dividend of 16 cents per share.
“After a long-term evaluation of our significant loan and deposit growth, the economy, and listening to regulator expectations, we decided that additional funding to the provision for loan losses is the proper strategy in today’s environment,” Chief Executive Hugh C. Lane, Jr. said in a statement. “This action is voluntary, and will further strengthen the position of the company today and into the future.”
The one-time measure will conserve about $700,000 in cash.
Company earnings for the three months ended June 30 were $687,461, up from $672,323 a year earlier. However, loan-loss provisions rose to $113,000 from $15,000 during the same period, according to information filed with the US Securities and Exchange Commission.
Shares of Bank of South Carolina Corp. fell 62 cents Friday, to $12.93.