I don't understand the drop in book value per share
It dropped from $12.22 to $11.55. But I don’t see how. By my calc it should have RISEN to $12.36 ($12.22 on March 31 plus $0.24 earnings per share for the 2nd quarter less the $0.10 dividend). What is going on?
The piece you are missing is losses on investment securities. YTD investment losses have totaled $4,208,000. $2,200,000 of the losses was charged directly to Stockholders Equity during the 2nd quarter. On a per share basis that works out to $0.80 ($2,200,000/2,740,132 shares). Your complete computation of book value per share is:
[Beginning BV per Share] + [EPS] – [Dividend] – [Investment Losses Charged to Equity] = [Ending BV per Share]
$ 12.22 + $0.24 - $0.10 - $0.80 = $11.56
(This is off a penny from the $11.55 due to rounding errors)