recent years, the bank announced that its net income was $7.83 million for the six months ended March 31, 2001.

The last financial results of the bank, which has not had a general manager since December, 1999, originally showed no figures, but only percentage increases or decreases.

The increase in the company's profits stem from the merger of its subsidiary Bermuda Provident Properties Ltd., the owner of the building the bank currently occupies on Church Street.

This added $5,157,920 to the balance sheet that would otherwise have read $2,672,330 for the six months. In the same six months of the previous year the bank recorded a net income of $2,828,604.

The company announced a dividend of 22.5 cents per share will be paid to shareholders, an increase of 12.5 percent from the 20 cents per share dividend at March 31, 2000, and the same amount as the per share dividend at September 30, 2000.

The bank said performance ratios, before the one-time gain, of the bank continue moving toward their targeted levels.

Basic and fully diluted earnings per share before the one-time gain are $0.63 (2000: $0.66) and $0.49 (2000: $0.56) and after the one-time gain are $1.83 (2000: $0.66) and $1.19 (2000: $0.56), respectively.

The bank said its efficiency ratio stands at 58.42 percent which, it said, continues to approach the 50 percent mark despite the slight increase from March 31, 2000, when it was 57.49 percent.

Return on assets are reported at .55 percent for the six month period as compared to .48 percent in the prior year's first six months with return on equity being 7.11 percent compared to 7.88 percent.

The company said in a press release: "It should be noted that the continuing return of solid financial results from BCB and the current dividend rate offer an annualised yield of 6.43 percent based on the $7 per share.'' BCB reported total revenues before the one-time gain of $6.43 million compared to $6.65 million for the six months ending March 31, 2001, and 2000, respectively.

The bank said net interest income remains solid with an increase to $3.47 million from $3.42 million despite the continuing pressure from low interest rates caused by three US Federal Reserve Bank interest rate reductions from September 30, 2000, to March 31, 2001.

The first six months of the Bank's financial year showed a decline in total expenses of 1.83 percent to $3.75 million from $3.82 million.

During the first six months of the financial year, BCB focused on administrative tasks to benefit clients and shareholders. One of the most notable aspects is the merger of Bermuda Provident Properties Ltd., the owner of the Bermuda Commercial Bank Building.

The recorded gain on the merger is $5.16 million, which will be reduced slightly over the next six months for the write off of existing leasehold improvements.

The release said: "When combined with the run-off of Somers Mortgage and Finance Limited, the merger is another step toward improving the liquidity of the bank. The risk profile of the bank remains very conservative. The strength and quality of the bank's balance sheet was further augmented by the sale of the bank's shares in the Bermuda Stock Exchange resulting in a net gain of $179,000.'' Total cash and balances with other banks of $489.09 million represent 96.9 percent of the total assets of the bank at March 31, 2001, compared to $538.88 million, or 95.3 percent of total assets, at September 30, 2000, and $685.62 million, or 95.81 percent of total assets, at March 31, 2000.

"BCB strives to achieve and maintain a highly liquid, low risk balance sheet,'' it added.

In 1995, BCB said it issued 1,625,036 common share purchase warrants entitling the warrant holders to purchase, at a price of $7.50, at any time during the period May 30, 1997, to May 31, 2001, one common share of BCB for each warrant held.

The bank said: "Considering that BCB's shares on the Bermuda Stock Exchange last traded at $7, which is below the exercise price of $7.50 of the warrants, and that none of the warrant holders have exercised their rights, the board of directors of BCB has determined it to be in the best interest of the bank and the warrant holders to extend the expiry date of the warrants to May 31, 2002, in order for warrant holders to realise the full economic benefit of the lifting of the non-Bermudian ownership restrictions.'' A meeting of the bank's warrant holders and its common shareholders will be held on May 30, 2001, to consider the extension of the expiry date applicable to the warrants from May 31, 2001, to May 31, 2002, at the Fairmont Hamilton Princess on May 30, 2001. at 5.30 p.m.