BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY

21. Bank of South Carolina Corporation - Parent Company

The Company’s principal source of income is dividends from the Bank. Certain regulatory requirements restrict the amount of dividends which the Bank can pay to the Company. The Company’s principal asset is its investment in its Bank subsidiary. The Company’s condensed statements of financial condition as of December 31, 2016 and 2015, and the related condensed statements of operations and cash flows for the years ended December 31, 2016, 2015 and 2014, are as follows:

CONDENSED STATEMENTS OF FINANCIAL CONDITION

	2016		2015
Assets
Cash	$	922,595	$	946,996
Investment in wholly-owned bank subsidiary		40,308,166		38,823,720
Other assets		76,077		20,154
Total assets	$	41,306,838	$	39,790,870
Liabilities and shareholders’ equity
Other liabilities	$	693,864	$	639,158
Shareholders’ equity		40,612,974		39,151,712
Total liabilities and shareholders’ equity	$	41,306,838	$	39,790,870

CONDENSED STATEMENTS OF OPERATIONS

	2016			2015			2014
Interest income	$	571		$	302		$	306
Net operating expenses		(177,612	)		(195,636	)		(187,284	)
Dividends received from bank		2,340,000			2,475,000			2,865,000
Equity in undistributed earnings of subsidiary		3,084,104			2,604,622			1,720,798
Net income	$	5,247,063		$	4,884,288		$	4,398,820

CONDENSED STATEMENTS OF CASH FLOWS

	2016			2015			2014
Cash flows from operating activities:
Net income	$	5,247,063		$	4,884,288		$	4,398,820
Stock-based compensation expense		76,529			78,987			74,908
Equity in undistributed earnings of subsidiary		(3,084,104	)		(2,604,622	)		(1,720,798	)
Decrease (increase) in other assets		(55,923	)		202,043			(40,418	)
Net cash provided by operating activities		2,183,565			2,560,696			2,712,512
Cash flows from financing activities:
Dividends paid		(2,613,715	)		(2,380,062	)		(2,765,735	)
Cash in lieu of fractional shares		—			(4,778	)		—
Stock options exercised		405,749			122,946			26,050
Net cash used by financing activities		(2,207,966	)		(2,261,894	)		(2,739,685	)
Net increase (decrease) in cash		(24,401	)		298,802			(27,173	)
Cash at beginning of year		946,996			648,194			675,367
Cash at ending of year	$	922,595		$	946,996		$	648,194
Supplemental disclosure for non-cash investing and financing activity:
Change in dividends payable	$	54,706		$	59,178		$	325