Bermuda Commercial Bank Ltd. (BCB) closed the year in the strong position, despite losing its chairman and president through their resignation following an investigation into First Curacao International Bank (FCIB), a major shareholder of BCB, of which both were directors.

The bank's annual results for the financial year ending September 30 revealed year-end deposit balances returning to more historical levels, while net income was $5.94 million, down from $8.38 million last year, but up from $5.17 million in 2005.

John Sainsbury, president of BCB, said: "2007 was an eventful year for BCB. The year commenced with the resignation of the bank's chairman and president following an investigation into FCIB, a major shareholder of BCB, on which both individuals served as directors.

"Prior to these resignations the board of directors had made the decision to seek a purchaser of the bank and subsequently announced that negotiations with other entities were ongoing.

"Negotiations for the sale of the bank continue but we have learned that it is not prudent to make any timing assumptions until a definitive sales agreement is signed. Furthermore, as a result of the events at FCIB, and in consultation with our auditors, the 2006 audit was delayed and was not completed until August 2007."

Basic and diluted earnings per share as at September 30 were $1.36 and $1.08, respectively. Basic and diluted earnings per share as at September 30, 2006 were $1.93 and $1.67, respectively. This dilution is as a consequence of the 3,311,251 outstanding warrants and options as at September 30.