Investors in Bank of South Carolina Corp. will see their holdings grow in late May.
The Charleston-based lender announced at its annual meeting last week that its board approved a dividend payable in common stock. Shareholders of record as of April 30 will be awarded one additional share for every 10 they now own on May 31.
It is the second time in the past three years the bank has issued a stock dividend. The company's normal quarterly cash payout is 15 cents a share.
"We are grateful to our shareholders, customers and employees for staying the course as we continue on in our next thirty-plus years," CEO Fleetwood Hassell said in a written statement.
The announcement came as Bank of South Carolina reported that its first-quarter profit jumped more than 31 percent to slightly more than $1.6 million compared to the same period last year.
Hassell had projected previously that changes to the federal corporate tax code that President Donald Trump signed into law in December would help the bottom line in 2018.
"It was the impact of the tax reform, but also expense control, loan volume and fee income," he said Friday. "We had a positive first quarter, with the tax reform on top of that."
The Bank of South Carolina opened its doors in 1987. It has four branches in downtown Charleston, Mount Pleasant, Summerville and West Ashley. It also has announced plans to open a full-service office off Highway 78 in North Charleston.