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Berkshire Bancorp Inc. Message Board

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  • kraven_the_hunter29 kraven_the_hunter29 Aug 5, 2012 7:21 AM Flag

    June quarter-investments in Berk

    One interesting data point is that per their latest call report, released at the end of July, it states that they have paid a $4 mil dividend on the common. That would equate to about $0.27/share. Obviously it hasn't been announced yet or paid, so presumably it's been accrued for the end of Q2 and will be included in the 10-Q whenever released. Not sure what else to make of it.

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    • I forgot that the call report relates to the bank not the holding company. So the dividend would be one paid up from the bank. Hopefully though that means a dividend on the stock will be announced. Sorry for any confusion.

    • The bank has been earning about .15/share per quarter, so .27 would most likely be a special dividend. Excuse my ignorance, but what is a call report?

      • 1 Reply to obamaboy1
      • A call report is the name given to a report that all banks are required to file with the FDIC. Call reports have nothing to do with the SEC or anything having to do with a bank's stock. They are a requlatory requirement and are often available prior to any SEC filings. In BERK's case, that is true as they tend to report on the later side.

        In any case, as you probably know, when you hold stock in a bank you actually hold stock in the bank holding company. The BHC's primary asset in most cases, at least in the case of a community bank, is IT'S stock in the bank. In this case, Berkshire Bank paid $4 mil to Berkshire Bancorp. That is significant in its own right as they have not been able to pay dividends to the holding company in a long time.

        So BERK now has $4 mil it didn't have before which since it has no other "real" obligations would presumably be used in whole or in part to pay a dividend. As to whether $0.27/share would be a special dividend or not, it's tough to say. The bank itself had net income of $4.355 mil last quarter (Q2), so we'll see what BERK reports in the coming weeks.

        Hope that all makes sense.