BCB unanimously approves restructuring

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Bermuda Commercial Bank has announced that a merger agreement between the bank, Bermuda National Limited and BNL I Limited, has been unanimously approved and adopted.

At BCB’s Special General Meeting held yesterday, shareholders interested in 5,931,905 shares in BCB representing approximately 84.11 percent of the bank’s issued share capital voted in favour of the resolution.

It is proposed that the restructuring of the bank will be completed on or around October 1, 2012 with the bank becoming a wholly owned subsidiary of BNL.

BCB will delist from the Bermuda Stock Exchange (BSX) with shareholders then becoming shareholders in the new BNL without any dilution of their percentage ownership on October 1.

Michael Collier, the chairman of BCB commented: “We are pleased that the bank’s shareholders have voted overwhelmingly in favour of the restructuring. The BCB directors believe that this marks an exciting development for the bank and offers its shareholders the ability to participate in a diversified and expanding financial services group.”

The day-to-day operations of BCB and its medium-term business strategy will remain unchanged and BCB said it will continue to be regulated by the Bermuda Monetary Authority.

BCB reported a profit of $3.23 million for the six months ended March 31, compared to $1.35 million for the six months ended March 31, 2011. Total revenue for the period was $10.17 million compared to $5.74 million in the prior year.

In August, BCB’s credit rating was downgraded by Moody’s because of increased risk associated with its investment portfolio, which the ratings agency said had risen from five percent of total assets in 2010 to 45 percent.

At the end of BSX trading yesterday, BCB jumped 50 cents (4.54 percent), trading 494 shares to close at $11.50.

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