Correction: A previous version of this story mischaracterized the company's earnings. It has been updated.
Bank of South Carolina Corp. reported earnings of $1.34 million for the quarter ending June 30, a decrease of nearly $500,000 compared with the same quarter last year.
The decrease was largely because of a drop in interest rates related to the economic effects of the COVID-19 pandemic, according to Bank of S.C. President Fleetwood S. Hassell.
“An interest rate environment rivaling that of the Great Recession has continued to impact our margins and thus our profits for the second quarter,” Hassell said in a news release.
According to the report, unaudited earnings for the second quarter were $1.34 million. Unaudited earnings in the first six months of 2020 were $3.02 million, $507,957 less than in the same period in 2019.
Hassell said the bank is doing well in its mortgage division and deposit growth. He also noted that few existing loan customers had requested payment deferrals or other accommodations.
“We are encouraged by the outstanding contribution from our mortgage operation and the robust deposit growth already experienced this year,” he said. “Asset quality remains strong as we have not, to date, experienced a significant number of requests from borrowers for payment deferrals or other accommodations. Our exposure to the hospitality and retail markets is minimal.”
Bank of S.C. also reported that it originated 266 loans totaling more than $37 million as part of the Payroll Protection Program, the federal initiative to provide financial assistance to small businesses affected by loss of revenue during the pandemic.s