business, the company reported this week.

The property company, formed through the merger of the mortgage and property divisions of LP Gutteridge and the Bank of Bermuda, earned $5.374 million in the 12 months to March 31.

Shareholders recently received a dividend of $0.40 a share, totaling $1,856,700. It included an extra $0.10 a share because of the "excellent results''.

Total assets of the company improved by $15.83 million over the combined assets of the two former companies, with $14.53 million of this attributed to the successful rights offering of July, 1994.

President Mr. Arthur Haycock stated in the shareholders' report that 362 mortgages (worth $66.74 million were granted to Bermudians during the year, bringing the total mortgages outstanding to $326.5 million.

He said that 95 percent of all mortgages granted during the fiscal year were to enable Bermudian families to acquire or construct homes for owner occupancy, or to refinance their existing mortgages.

There was almost no demand to finance the purchase of houses for investment or rental purposes, which Mr. Haycock stated, "reflects many Bermudians' cautious stance over the uncertainties of the ongoing independence debate, the phased relaxation of exchange controls and the undetermined effect on the housing market of the winding down and closure of the US Naval Air Station in Bermuda''.

He said Bermuda Home's strong capital base, together with a high level of liquidity (27.3 percent of deposit liabilities at March 31) in the form of cash deposits with banks, reinforces the security enjoyed by Bermuda Home's depositors, whose deposits totaled $423.8 million at March 31.

The real estate subsidiary, Bermuda Realty Company Ltd., generated net revenues of $2,004,000. The subsidiary's net contribution to Bermuda Home's earnings amounted to $116,000 after direct expenses.