Bank of South Carolina Corp., the Charleston parent of The Bank of South Carolina, plans to pull its stock from the Nasdaq Capital Market and end its registration with the Securities and Exchange Commission.
The company’s board approved the moves today, and the company notified Nasdaq of its plans, according to a filing with the SEC.
The company expects to file a delisting form with the SEC on or about Sept. 4. Its last day of trading on Nasdaq would be on or about Sept. 14, and its shares would begin trading on the OTCQX Market under the same symbol, BKSC, on or about Sept. 15, the company said.
“Much consideration was given to today’s decision to change trading platforms and no longer be an SEC registrant,” said Fleetwood S. Hassell, president and CEO. “We have been advised that these actions should have no negative impact on the trading of our stock, but they will most certainly result in significant cost savings for the Company.”
As a bank holding company with fewer than 1,200 shareholders of record, the company is eligible to deregister, it said. Its annual report listed about 456 holders of its common stock as of Jan. 31. The board cited savings on SEC reports and on accounting, audit, legal and other costs.
The company said it will keep having its financial statements audited by an independent firm and will publish quarterly and annual results through news releases, the OTCQX website and the bank’s website. The bank will also keep filing quarterly reports with its primary federal regulator.
The Bank of South Carolina opened Feb. 26, 1987, and has offices in Charleston, North Charleston, Summerville, Mount Pleasant, James Island and West Ashley. It had 80 employees at the end of 2022.
The company earned $1.28 million in the second quarter, down 17% from a year earlier, as deposit costs rose. It had $648.4 million in assets at June 30.
Hassell, who has been with the bank since its organization, plans to retire Sept. 30. Chief Financial Officer Eugene H. Walpole IV is set to succeed him as president and CEO on Oct. 1, the company announced in January.
