BCB Reports Six-Month Results and Maintains Shareholder Dividend

Hamilton, Bermuda, May 11, 2007 - Bermuda Commercial Bank is pleased to announce the results of the Bank for the six-month period ended March 31, 2007.

Financial Results

The Bank reported net income for the six-month period ended March 31, 2007 of $2.79 million compared to $4.25 million at March 31, 2006, a decrease of 34.4%[1]. Total revenue for the period was $7.80 million compared to $8.82 million in the prior period.  Net interest income during the same period was $5.03 million compared to $5.68 million. This downturn can largely be attributed to lower client deposits following the announcement in September 2006 that First Curacao International Bank (FCIB), the Bank's major shareholder, was under investigation for alleged money laundering and other illegal activities. BCB was not implicated in any way by the events surrounding FCIB. The decrease in deposits is expected to be short-lived as consumer confidence improves and a new buyer is announced.

While BCB was hurt by its perceived connection with FCIB, the Bank has seen significant improvements in customer deposit levels since initial customer reaction to the investigation of FCIB in September. Total assets grew from $464.50 million at September 30, 2006 to $583.18 million at March 31, 2007, an increase of 25.6%. Total assets at March 31, 2006 were $585.85 million.

Total expenses for the six-month period were $5.01 million compared to $4.56 million for the prior year period, an increase of $450,000 or 9.90%. The 2007 figure includes $500,000 of non-recurring expenses relating to the sale process. Excluding these one-time costs, total expenses were 1.1% below the prior period level.      

Shareholder Dividend

The Bank will pay a semi-annual dividend of $0.40 per share to shareholders of record as of May 16, 2007. This distribution represents 62.5% of earnings for the six months ending March 31, 2007. The semi-annual dividend generates an annual yield of 9.0% based on the current market value of $8.85 for the Bank's common stock.

Developments

Since the summer of 2006, the Bank has sought potential purchasers both locally and internationally. This process has taken longer than originally expected but we are pleased to announce discussions have now reached the final stages.

The Bank continues to maintain its commitment to a liquid balance sheet; has no debt, with cash and cash equivalents making up over 99% of total assets. BCB's experienced staff, and its ability to provide superior customer service to corporate and private wealth clients finds the Bank well poised for future growth.