wholly-owned subsidiary Somers Mortgage and Finance Ltd., the bank revealed yesterday in its half year results.

For the six months ended March 31, BCB made $1,259,000 compared to $920,000 for the prior year's first half, a 37 percent increase.

The mortgage move means no new loans will be made but deposit taking business will continue.

None of Somers eight staff will be made redundant, BCB managing director Peter Roberts said.

"Existing customers at Somers, both mortgage holders and depositors, including personal account holders, will, of course, continue to enjoy personal service.'' Somers is expected to relocate to the bank's Church Street offices from Queen Street.

At the end of the last financial year, Somers had about $35.6 million in mortgages with maturities up to 25 years, about 530 savings accounts totalling about $2.4 million and 480 deposit accounts totalling about $24.4 million.

In the bank's 1996 annual report, BCB said deposits had shrunk marginally and that: "Contraction in our Bermuda dollar deposit base was the result of the extremely competitive market for local funds given impetus by the combination of the relaxation of exchange controls and the removal of the interest rate ceiling.'' On the results released yesterday, BCB chairman John Deuss said: "The policies that produce our continued success were adopted in 1993 and remain unchanged today. BCB is focused on providing superior service to the Bermuda based international business community through superior systems at minimum risk. These policies guide the bank's continuing development of fee-based, low risk business.'' Gross assets at March 30, 1997 were $444.6 million.

Somers Mortgage to relocate The increase in assets was a "direct result of an increase in customer deposits'' which rose ten percent to $409 million for the six months. Balance sheet growth was matched by off-balance sheet assets, with assets under administration, custody and trust having grown to $5.2 billion from $4.6 billion at September 30, 1996, the bank said.

The bank's balance sheet growth "is largely the result of increased confidence in BCB by the Bermuda institutional market and a broader base of new international clients now working with the bank,'' Mr. Roberts said.

Other results released by the bank show retained earnings rose to $5.2 million from $4.3 million at September 30, 1996.

Net interest income generated by the bank increased to $2.2 million, or 17 percent.