<PAGE>

                                                   FORM 10-Q
 
                                        SECURITIES AND EXCHANGE COMMISSION

                                              Washington, D.C. 20549

                                                    (Mark One)

       [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
            EXCHANGE ACT OF 1934

                            For the quarterly period ended September 30, 1997

                                                        OR

       [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934

                      For the transition period from ________ to ___________

                                          Commission file number: 0-20960

                                              Hamilton Bancorp Inc.
                         (Exact name of Registrant as specified in its charter)

                                                 Florida65-0149935
                              (State or other jurisdiction of(I.R.S. Employer
                             incorporation or organization)Identification No.)
                                             3750 N.W. 87th Avenue
                                               Miami, Florida 33178
                          (Address of principal executive offices) (Zip code)

                                                  (305) 717-5500
                          (Registrant's telephone number including area code)

                                                  Not applicable
(Former name, former address, and former fiscal year, if changed since last
 report)

Indicate by check mark whether the registrant (1) has filed all reports
Required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
 such filing requirements for the past 90 days. Yes____ No X

                       APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
                             PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and 
reports required to be filed by Section 12,   13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
                                                 Yes ____ No ____

                                    (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

  Indicate the number of shares outstanding of each of the registrant's classes
 of common stock, as of the latest practicable date.
               Title                   Outstanding
              Common                    9,827,949

<PAGE>
                                                PART I. FINANCIAL INFORMATION

                                           HAMILTON BANCORP INC. AND SUBSIDIARY
                                           CONSOLIDATED STATEMENTS OF CONDITION
                                                        (In thousands)
<TABLE>
<CAPTION>

                                                                                               September 30,         December 31,
                                                                                           ---------------------  ----------------
                                                                                                   1997                   1996
                                                                                           ---------------------  ----------------
                                                                                                (Unaudited)             (Audited)

                                                                   ASSETS
<S>                                                                                               <C>               <C>    
CASH AND DEMAND DEPOSITS WITH OTHER BANKS                                                          $23,578          $14,806
FEDERAL FUNDS SOLD                                                                                  23,000           18,300
                                                                                            ---------------        ----------
      Total cash and cash equivalents                                                               46,578           33,106

INTEREST EARNING DEPOSITS WITH  OTHER BANKS                                                         90,895           80,477
SECURITIES AVAILABLE FOR SALE                                                                       62,177           29,020
LOANS-NET                                                                                          854,150          527,279
DUE FROM CUSTOMERS ON BANKERS ACCEPTANCES                                                           76,511           60,761
DUE FROM CUSTOMERS ON DEFERRED PAYMENT LETTERS OF CREDIT                                             3,744            7,343
PROPERTY AND EQUIPMENT-NET                                                                           4,456            3,460
ACCRUED INTEREST RECEIVABLE                                                                         12,057            6,471
GOODWILL-NET                                                                                         2,052            2,183
OTHER ASSETS                                                                                         3,816            5,470
                                                                                           ---------------  ---------------
TOTAL                                                                                           $1,156,436         $755,570
                                                                                           ===============  ===============

                                                    LIABILITIES AND STOCKHOLDERS' EQUITY

DEPOSITS                                                                                          $976,347         $638,641
BANKERS ACCEPTANCES OUTSTANDING                                                                     76,511           60,761
DEFERRED PAYMENT LETTERS OF CREDIT OUTSTANDING                                                       3,744            7,343
OTHER LIABILITIES                                                                                    6,251            5,025
                                                                                           ---------------  ---------------
     Total liabilities                                                                           1,062,853          711,770
                                                                                           ---------------  ---------------

STOCKHOLDERS' EQUITY:
     Preferred stock, non-voting, non-cumulative, 14% maximum dividend rate, par
       value $.01 per share, 2,000,000 shares authorized, 101,207 shares issued and
       outstanding at December 31, 1996                                                                  0                1
     Common stock, $.01 par value, 75,000,000 shares authorized, 5,205,030 shares
       issued and outstanding at December 31, 1996 and 9,827,949 shares issued
       and outstanding at September 30, 1997.                                                           98               52
     Capital surplus                                                                                56,158           17,317
     Retained earnings                                                                              37,306           26,432
     Net unrealized gain (loss) on securities available for sale, net of taxes                          21              (2)
                                                                                           ---------------  ---------------
     Total stockholders' equity                                                                     93,583           43,800
                                                                                           ---------------  ---------------
TOTAL                                                                                           $1,156,436         $755,570
                                                                                           ===============  ===============
</TABLE>


See accompanying notes to consolidated financial statements.

                                                                     

<PAGE>

                                    HAMILTON BANCORP INC. AND SUBSIDIARY
                                     CONSOLIDATED STATEMENTS OF INCOME
                                (Dollars in thousands except per share data)
<TABLE>
<CAPTION>
                                                         Three Months Ended September 30,   Nine Months Ended September 30,
                                                          --------------------------------- ----------------------------------
                                                              1997                1996           1997               1996
                                                         ---------------     --------------  ------------    ------------------
INTEREST INCOME:                                                    (Unaudited)                         (Unaudited)
<S>                                                              <C>                <C>           <C>                   <C>  
                                                          --------------     --------------  ------------    ------------------
  Loans, including fees                                          $18,841            $12,536       $48,027               $34,545
  Deposits with other banks                                        2,242              1,803         6,863                 4,279
  Securities                                                       1,127                454         2,058                 1,525
  Federal funds sold                                                 357                161           791                   863
                                                         ---------------     --------------  ------------    ------------------
    Total                                                         22,567             14,954        57,739                41,212
INTEREST EXPENSE:
  Deposits                                                        11,969              7,822        30,160                21,007
  Federal funds purchased                                             64                 14           173                    14
                                                         ---------------     --------------  ------------    ------------------
     Total                                                        12,033              7,836        30,333                21,021
                                                         ---------------     --------------  ------------    ------------------
NET INTEREST INCOME                                               10,534              7,118        27,406                20,191
PROVISION FOR CREDIT LOSSES                                        2,050              1,490         4,989                 2,440
                                                         ---------------     --------------  ------------    ------------------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT
  LOSSES                                                           8,484              5,628        22,417                17,751
NON-INTEREST INCOME:
  Trade finance fees and commissions                               3,149              2,497         9,055                 6,494
  Capital market fees, net                                           808                 81         1,372                    82
  Customer service fees                                              146                215           567                 1,056
  Other                                                               75                 67           324                   170
                                                         ---------------     --------------  ------------    ------------------
     Total                                                         4,178              2,860        11,318                 7,802
                                                         ---------------     --------------  ------------    ------------------
OPERATING EXPENSES:
  Employee compensation and benefits                               3,267              2,609         8,796                 7,187
  Occupancy and equipment                                            840                711         2,318                 2,179
  Other                                                            1,338              1,410         5,209                 4,363
                                                         ---------------     --------------  ------------    ------------------
     Total                                                         5,445              4,730        16,323                13,729
                                                         ---------------     --------------  ------------    ------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                           7,217              3,758        17,412                11,824
PROVISION FOR INCOME TAXES                                         2,587              1,418         6,219                 4,505
                                                         ---------------     --------------  ------------    ------------------

NET INCOME                                                        $4,630             $2,340       $11,193                $7,319
                                                         ===============     ==============  ============    ==================
NET INCOME PER COMMON AND COMMON EQUIVALENT SHARES
     PRIMARY                                                       $0.45              $0.43         $1.27                 $1.35
                                                         ===============     ==============  ============    ==================
     FULLY DILUTED                                                 $0.45              $0.43         $1.27                 $1.35
                                                         ===============     ==============  ============    ==================
AVERAGE WEIGHTED SHARES OUTSTANDING:
     PRIMARY                                                  10,194,078          5,430,030     8,828,242             5,430,030
                                                         ===============     ==============  ============    ==================
     FULLY DILUTED                                            10,199,105          5,430,030     8,833,270             5,430,030
                                                         ===============     ==============  ============    ==================
</TABLE>


See accompanying notes to consolidated financial statements.



<PAGE>
 
 

                                   HAMILTON BANCORP INC. AND SUBSIDIARY

                              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                              (Dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                                            Net Unrealized
                                                                                                           (Loss) Gain on
                                                                                                               Securities  
                                                 Preferred Stock             Common Stock                    Stockholders'
                                             ------------------------    ----------------- Capital  Retained  Available for   Total
                                               Shares       Amount      Shares     Amount  Surplus  Earnings  Net of Taxes   Equity
                                             ----------   ---------    ------------------ --------------------------------- -------
<S>                                             <C>           <C>       <C>         <C>  <C>        <C>              <C>    <C>
Balance, December 31, 1996 (audited)            101,207        $1       5,205,030   $52  $17,317    $26,432          ($2)   $43,800

Conversion of preferred stock for
  common stock, with 6.5 to 1 split           (101,207)       (1)         466,160     5      (4)                                  0

Conversion of warrants with 6.5 to 1 split                              1,396,759    14     (14)                                  0

Sale of 2,760,000 shares of common
  stock in public offering, net                                         2,760,000    27   38,859                             38,886

Net change in unrealized gain on
  securities available for sale, net of taxes                                                                          2         23

Net income for the nine months ended
  September 30, 1997                                                                                11,193                   11,193

Cash dividends on preferred stock, net
  of withholding taxes                                                                               (319)                    (319)
                                             ----------   -------    ------------  ----- --------  ---------  ------------ --------

Balance as of September 30, 1997 (unauditee)          0        $0       9,827,949   $98  $56,158    $37,306           $21   $93,583
                                             ==========   ========    ============ ===== ========= ========== =====================
</TABLE>


See accompanying notes to consolidated financial statements.

<PAGE>

                                        HAMILTON BANCORP INC. AND SUBSIDIARY
                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                               (Dollars in thousands)

<TABLE>
<CAPTION>

                                                                                      Nine Months Ended September 30,
                                                                               ----------------------------------------------
                                                                                       1997                     1996
                                                                               ---------------------    ---------------------
                                                                                                (Unaudited)
<S>                                                                                          <C>                       <C>        
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income                                                                              $11,193                   $7,319
       Adjustments to reconcile net income to net cash
         provided by operating activities:
         Depreciation and amortization                                                           760                      811
         Provision for credit losses                                                           4,989                    2,440
         Deferred tax (benefit) provision                                                    (1,248)                       84
         Proceeds from the sale of bankers acceptances and
           loan participations, net of loan participations
           purchased                                                                          48,808                   71,633
       Increase in accrued interest receivable and other assets                              (3,529)                  (4,172)
       (Decrease) increase in other liabilities                                                1,227                    (339)
                                                                               ---------------------    ---------------------
         Net cash provided by operating activities                                            62,200                   77,776
                                                                               ---------------------    ---------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Increase in interest-earning deposits with other banks                                 (10,418)                 (31,471)
     Purchase of securities available for sale                                             (151,787)                 (46,288)
     Proceeds from maturities of securities held to maturity                                       0                   20,897
     Proceeds from sales and maturities of securities available
       for sale                                                                              119,494                   19,889
     Increase in loans-net                                                                 (380,668)                (184,521)
     Purchases of property and equipment-net                                                 (1,622)                    (417)
                                                                               ---------------------    ---------------------
         Net cash used in investing activities                                             (425,001)                (221,911)
                                                                               ---------------------    ---------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Increase in deposits-net                                                                337,706                  140,352
     Net Proceeds from issuance of common stock IPO                                           38,886                        0
     Cash dividends on preferred stock                                                         (319)                    (531)
                                                                               ---------------------    ---------------------
         Net cash provided by financing activities                                           376,273                  139,821
NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                                                 13,472                  (4,314)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE
  PERIOD                                                                                      33,106                   46,589
                                                                               ---------------------    ---------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                                               $46,578                  $42,275
                                                                               =====================    =====================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:
  Interest paid during the period                                                            $28,915                  $21,178
  Income taxes paid during the period                                                         $5,977                   $4,285
</TABLE>


See accompanying notes to consolidated statement.
                                                              4

<PAGE>


HAMILTON BANCORP AND SUBSIDIARY NOTES TO CONSOLIDATED  FINANCIAL STATEMENTS
SEPTEMBER 30, 1997 

NOTE 1: Basis of Presentation 

The consolidated  statements of condition for Hamilton  Bancorp and Subsidiary  
(the  "Company") as of September 30, 1997 and December 31, 1996, the related  
consolidated  statements of income, stockholders'  equity and the cash flows 
for the nine months ended September 30, 1997 and 1996  included  in the Form 
10Q have been  prepared  by the  Company in conformity  with the  instructions  
to Form 10Q and Article 10 of Regulation S-X and, therefore,  do not include 
all of the information and footnotes required by generally accepted accounting 
principles for complete financial statements.  The statements are unaudited 
except for the  consolidated  statement of condition as of December 31, 1996. 

The  accounting  policies  followed for interim  financial reporting are 
consistent with the accounting policies set forth in Note 1 to the
consolidated  financial  statements  appearing  in  the  Company's  registration
statement  on Form S-1 for the year ended  December  31,  1996 as filed with the
Securities and Exchange  Commission.  

NOTE 2: 

The Company  completed its initial public  offering  of  2,400,000  shares of 
common  stock on March 31,  1997.  In connection with the initial public 
offering,  the Board amended and restated the articles of incorporation of 
the Company authorizing 75,000,000 shares of common stock and 10,000,000  
shares of "blank check" preferred stock. In addition,  the Board  approved  
a 6.5 for 1 common  stock  split  and a  reorganization  of the capital  
structure  of the  Company  consisting  of (i)  the  conversion  of all 
outstanding  shares  of the  Company's  preferred  Shares  (Series B and C) into
466,168  shares  (post-stock  split) of common stock and (ii) the issuance of an
aggregate  of  1,396,761  shares  (post  stock  split) of  common  stock for all
outstanding  warrants to purchase  shares of common stock of Hamilton Bank, N.A.
These actions were approved by the  shareholders in January 1997 and consummated
in March  1997.  Following  the public  offering,  on April 9, 1997 the  Company
issued  360,000  additional  shares of common  stock  upon the  exercise  of the
over-allotment  option  granted to  Oppenheimer  and Company,  Inc., and NatWest
Securities  Ltd.
 <PAGE>

  ITEM 2.           MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF
                   FINANCIAL  CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION  

Hamilton Bancorp, Inc. ("Bancorp") is a bank holding company which conducts
operations  principally  through its 99.8%  subsidiary  Hamilton Bank, N.A. (the
"Bank").  The Bank is a national  bank which  specializes  in financing  foreign
trade between the United States,  South  and  Central  America  and  the  
Caribbean,   (collectively  the "Region").  The Bank has a network of seven  
FDIC-insured  branches  in Florida, with  locations in Miami,  Sarasota,  Tampa,
West Palm Beach and Winter  Haven.

Throughout this discussion, Bancorp and its subsidiary are collectively referred
to as the "Company".  

This Form 10-Q  contains  certain "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the 
"Exchange  Act"),  which  represents  the Company's  expectations or beliefs,  
including,  but not limited to,  statements concerning  industry  performance  
and the  Company's  operations,  performance, financial  condition,  growth and
strategies.  For this purpose,  any statements contained in this Form that are 
not statements of historical  fact may be deemed to be  forward-looking  
statements.  Without  limiting  the  generality  of  the foregoing,  words 
such as "may,"  "will,"  "expect,"  "believe,"  "anticipate," "intend,"  
"could,"   "estimate,"  or  "continue,"  or  the  negative  or  other
variations   thereof  or  comparable   terminology   are  intended  to  identify
forward-looking statements. These statements by their nature involve substantial
risks and uncertainties,  certain of which are beyond the Company's control, and
actual  results  may  differ  materially  depending  on a variety  of  important
factors,   including   regional   economic   conditions,   potential   political
instability,   credit   risks   collateral-related   risks,   concentration   of
cross-border lending activities,  potential impact of changes in interest rates,
ability of the Company to continue this growth  strategy,  concentration of
deposits,  dependence on management and key personnel and risks  associated with
competition,  supervision and regulation.  

The Company cautions that the factors described above could cause actual 
results or outcomes to differ materially from those expressed in any 
forward-looking  statements of the Company made by or on behalf of the Company. 
Any forward-looking  statement speaks only as of the date on which such  
statement is made,  and the Company  undertakes  no obligation to
update  any  forward-looking  statement  or  statements  to  reflect  events  or
circumstances  after the date on which such  statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and it
is not possible for management to predict all of such factors or the effect that
any such factor may have on the Company's business. 

<PAGE>

FINANCIAL  CONDITION - September 30, 1997 vs. December 31,1996.

Total  consolidated  assets increased $400.9 million,  or 53 %, during the
first nine months of 1997,  which  included  an  increase  of $375.1  million in
interest  earning assets and an increase $25.7 million in  non-interest  earning
assets. The increase in consolidated assets reflects increases of $326.9 million
in loans-net  and $10.4 million in  interest-earning  deposits with other banks.
These increases were principally  funded by the deployment of the capital raised
during the initial public offering and increases in retained earnings,  deposits
from the branch  network,  time  deposits due to banks and deposits due to other
financial institutions. The Company opened a branch in Sarasota during the first
quarter,  and a branch in West Palm Beach early in the second  quarter  that are
intended to further  support  future asset growth.  

Cash,  Demand  Deposits withOther Banks and Federal  Funds Sold 

Cash,  demand  deposits with other banks and federal funds sold are considered 
cash and cash  equivalents.  Balances of these items  fluctuate  daily 
depending on many factors which include or relate to the particular banks 
that are clearing funds,  loan payoffs,  deposit  gathering and reserve  
requirements.  Cash, demand deposits with other banks and federal funds
sold were $46.6  million at  September  30, 1997  compared  to $33.1  million at
December 31, 1996.  

Investment  Securities  and  Interest-Earning  Deposits with Other  Banks  

Interest-earning  deposits  with other  banks  increased  to $90.9
million at September  30, 1997 from $80.5  million at December  31, 1996.  These
deposits are placed with correspondent banks in the Region, generally on a short
term basis (less than 365 days),  to increase  yields and enhance  relationships
with the  correspondent  banks.  The  level of such  deposits  has  grown as the
overall  assets of the  Company  have  increased  during the nine  months  ended
September 30, 1997. The short term nature of these  deposits  allows the Company
the  flexibility to redeploy  these assets into higher  yielding loans which are
largely related to the financing of trade.  

Investment  securities  increased to $62.2 million at September 30, 1997 from 
$29.0 million at December 31, 1996. The increase has been primarily in foreign  
government bills and U.S.  Treasury bill obligations.  These  investments  are  
short  term and  allow  the  Company  the flexibility  of  liquidity  and the 
ability to convert  these assets into higher yielding  loans as these  become  
accessible.  

Loans 

The Company's loan portfolio increased by $326.9 million, or 62%, during the 
first nine months of 1997 in relation to the year ended December 31, 1996.  
This was primarily due to the  increased  demand for loans and trade  finance 
as a result of  perceived economic  stability  in the Region,  as well as the 
growth in trade  between the United  States and the Region.  Furthermore,  the 
Company's  additional  capital resulted in an increase in the banks legal  
lending limit which allowed the bank to increase  lending to the existing  
customer base.  Commercial-domestic  loans increased by $64.4 million and 
loans to banks and other financial institutions - foreign  increased by $183.2 
million.  Details on the loans by type are shown in the table  below.  At  
September  30, 1997  approximately  26% of the  Company's portfolio  consisted  
of loans to domestic  borrowers  and 74% of the  Company's portfolio consisted 
of loans to foreign borrowers.  The Company's loan portfolio is relatively  
short-term,  as approximately  68% of loans at September 30, 1997 were 
short-term trade finance loans with average maturities of approximately 180
days. See "Interest Rate Sensitivity Report". The following table sets forth the
loans by type of the Company's loan portfolio at the dates indicated.

The  following  table  sets forth the loans by type of the  Company's  loan
portfolio at the dates indicated.

                                                                Loans by Type
                                                               (in thousands)

                                                                             
<TABLE>
<CAPTION>
                                                          September 30,         December 31,
                                                              1997                  1996
<S>                                                               <C>                   <C>    
Domestic:

     Commercial (1)                                               $174,758              $110,322
     Acceptances discounted                                         36,750                23,314
     Residential mortgages                                          11,428                10,610
     Installment                                                       259                   428

    Subtotal Domestic                                              223,195               144,674

Foreign:
 
                                                                             
     Banks and other financial institutions                        312,577               129,376
     Commercial and industrial (1)                                 260,255               179,824
     Acceptances discounted                                         69,228                80,935
    Government and official institutions                                 0                   750

     Subtotal Foreign                                              642,060               390,885

          Total loans                                             $865,255              $535,559
</TABLE>


(1) Includes  pre-export  financing,  warehouse receipts and refinancing of
letters of credits.




<PAGE>


The following tables reflect both the Company's growth and  diversification
in financing  trade flows  between the United  States and the Region in terms of
loans by country and cross-border  outstanding by country.  The aggregate amount
of the Company's crossborder outstanding by primary credit risk include cash and
demand deposits with other banks,  interest  earning  deposits with other banks,
investment  securities,  due from  customers  on bankers  acceptances,  due from
customers on deferred  payment letters of credit and loans-net.  Exposure levels
in any given  country at the end of each  period may be  impacted by the flow of
trade  between the United  States (and to a large extent  Florida) and the given
countries,  as well as the price of the underlying  goods or  commodities  being
financed.  

At September 30, 1997 approximately 40.78% in principal amount of the Company's
loans were  outstanding to borrowers in five countries other than the United 
States: Panama (8.70%),  Guatemala (8.61%), Ecuador (8.53%), Peru (8.39%)
and Brazil (6.55%).
                                                            Loans by Country
                                                         (Dollars in thousands)

<TABLE>
<CAPTION>
                                                         
                            September 30, 1997             % of                      December 31, 1996             %  of
                                                          Total                                                    Total
Country                      Amount                       Loans                       Amount                       Loans
<S>                           <C>                          <C>                          <C>                         <C> 
United States                   $223,195                    25.46%                      $144,674                    27.01%
Argentina                         43,588                      5.06                        35,241                      6.58
Bolivia                           21,325                      2.48                        15,815                      2.95
Brazil                            56,420                      6.55                        27,255                      5.09
British West Indies(2)                 -                        -                         14,740                      2.75
Colombia                          13,673                      1.59                           -                          -
Dominican Republic                41,559                      4.82                         9,450                      1.76
Ecuador                           73,499                      8.53                        29,799                      5.56
El Salvador                       41,158                      4.78                        28,472                      5.32
Guatemala                         74,134                      8.61                        79,483                     14.84
Honduras                          38,307                      4.45                        24,277                      4.53
Jamaica (2)                            -                        -                         10,971                      2.05
Panama                            74,922                      8.70                        50,553                      9.44
Peru                              72,280                      8.39                        26,658                      4.98
Russia                            17,500                      2.03                           -                          -
Venezuela                         22,652                      2.63                        10,245                      1.91
Other (1)                         51,043                      5.93                        27,926                      5.31

     Total                      $865,255                   100.00%                        $535.559                 100.00%
</TABLE>


 
(1) Other  consists of loans to  borrowers  in countries in which loans did
not exceed 1% of total assets.

(2) These countries had loans which did not exceed 1% of total assets.
<PAGE>

At September 30, 1997 approximately 32.4% of the Company's cross-border
outstanding were outstanding to borrowers in five countries other than the 
United States: Ecuador (7.8%), Brazil (6.8%), Guatemala (6.3%), Peru (6.2%) 
and Panama (5.3%).

                              Total Cross-Border Outstanding by Country
                                          (Dollars in million)

<TABLE>
<CAPTION>
                                                          % of                                                  % of
                            September 30, 1997            Total                     December 31, 1996           Total
                                                         Assets                                                 Assets 

<S>                            <C>                       <C>                            <C>                        <C> 
Argentina                      $  49                     4.2%                           $ 58                       7.7%
Bolivia                           26                     2.3                               27                      3.6
Brazil                            78                     6.8                               36                      4.7
British West Indies                9                     0.8                               11                      1.5
Colombia                          14                     1.2                                6                      0.8
Dominican Republic                44                     3.8                                6                      0.8
Ecuador                           90                     7.8                               35                      4.6
El Salvador                       56                     4.8                               32                      4.2
Guatemala                         73                     6.3                               96                     12.7
Honduras                          34                     2.9                               33                      4.4
Jamaica                           32                     2.8                               22                      2.9
Panama                            61                     5.3                               41                      5.4
Peru                              72                     6.2                               26                      3.4
Russia                            21                     1.8                                0                        0
Venezuela                         11                     1.0                               10                      1.3
Other (1)                         50                     4.2                               17                      2.3

Total                           $720                    62.3%                            $456                     60.3%
</TABLE>

     (1) Other consists of  cross-border  outstanding to countries in which such
cross-border  outstanding  did not exceed 0.75% of the Company's total assets at
any of the dates shown. 
 <PAGE>

Contingencies

The following  table sets forth the total volume and average monthly volume
of the  Company's  export and import  letters of credit for each of the  periods
indicated.

                                  Contingencies - Commercial Letters of Credit
                                                (in thousands)

<TABLE>
<CAPTION>
                                   September 30, 1997        December 31, 1996
                                               Average                      Average
                                   Total       Monthly       Total          Monthly
                                   Volume      Volume        Volume         Volume

<S>                                <C>         <C>           <C>            <C>    
Export Letters of Credit (1)       $292,504    $39,045       $369,367       $30,781
Import Letters of Credit (1)         294,000    25,431        312,964        26,080

Total                              $586,504    $64,476       $682,331       $56,861
</TABLE>
 

(1)  Represents  certain  contingent   liabilities  not  reflected  on  the
Company's  balance sheet. 

The following table sets forth the distribution of the Company's  contingent  
liabilities  by country of the applicant and issuing bank for import and export
letters of credit,  respectively.  As shown by the table, contingent  
liabilities increased by 53% from December 31, 1996 to September 30,
1997. Individual fluctuations reflect relative changes in the flow of trade.


                                            Contingent Liabilities (1)
                                                   (in thousands)

<TABLE>
<CAPTION>

                                  September 30, 1997                December 31, 1996

<S>                                <C>                                 <C>     
Argentina                          $  2,653                            $  7,095
Bolivia                               5,873                               4,401
Brazil (3)                               -                                4,770
Colombia                              2,296                                 -
Costa Rica                            9,654                                 -
Dominican Republic                    3,582                               2,719
Ecuador                              16,653                               1,858
El Salvador                           8,734                               5,616
Guatemala                            13,975                              13,981
Guyana                                2,083                                 -
Haiti                                 5,838                                 -
Honduras                              5,047                               8,315
Jamaica (3)                              -                                1,556
Nicaragua (3)                            -                                1,414
Panama                               11,537                               9,803
Paraguay                              3,761                               5,105
Peru                                  9,439                               5,864
United States                        92,938                              55,991
Other (2)                             7,902                               3,224
                                                                     
Total                              $201,964                            $131,712
</TABLE>


(1)Includes export and import letters of credit,  standby letters of credit
and  letters  of  indemnity.   

(2)Other   includes  those   countries  in  which contingencies  represent 
less than 1% of the Company's  total  contingencies  at each of the above dates.

(3) These countries had loans which did not exceed 1% of total assets.
<PAGE>


Allowance  for Credit  Losses 

The  allowance  for  credit  losses  reflects management's  judgment  of the
level  of  allowance  adequate  to  provide  for reasonably  foreseeable  
losses,  based  upon  the  following  factors:  (i) the economic  conditions
in those  countries  in the  Region in which  the  Company conducts trade 
finance  activities;  (ii) the credit  condition of its customers and 
correspondent banks, as well as the underlying collateral, if any; and (iii)
historical  experience.  

In addition,  although the Company's credit losses have been  relatively  
limited  to date,  management  believes  that the level of the Company's  
allowance  should  reflect the  potential  for political and economic
instability in certain  countries of the Region and the possibility that serious
economic  difficulties in a country could adversely  affect all of the Company's
loans to borrowers  in or doing  business  with that  country.  

Determining  the appropriate  level of the  allowance  for credit  losses  
requires  management's judgment,  including  application of the factors  
described above to assumptions and estimates made in the context of changing 
political and economic  conditions in many of the countries of the Region.  
Accordingly,  there can be no assurance that the Company's current allowance 
for credit losses will prove to be adequate in light of future events and 
developments.  At September 30, 1997 the allowance for credit losses was 
approximately  $9.2 million,  an increase of 61% from $5.7 million at December 
31,  1996,  this  increase  was largely to support the loan growth  during  
the  period.  
<PAGE>  

The  following  table  provides  certain  information  with  respect to the
Company's allowance for credit losses, provision for credit losses and chargeoff
and recovery  activity for the periods shown.

                                                       Credit Loss Experience
                                                           (in thousands)

<TABLE>
<CAPTION>


                                              Nine Months Ended                                 Year Ended
                                              September 30, 1997                            December 31, 1996

<S>                                           <C>                                               <C>  
Balance of allowance for credit losses at                                                   
beginning of   period                         $      5,725                                       $    4,450
Charge-offs:
Domestic:
     Commercial                                     (1,685)                                           (951)
     Acceptances                                         0                                               0
     Residential                                         0                                               0
     Installment                                        (3)                                             (8)
   Total domestic                                   (1,688)                                           (959)
Foreign:
     Government and official institutions                0                                               0
     Banks and other financial institutions            (69)                                           (678)
     Commercial and industrial                           0                                            (146)
     Acceptances discounted                              0                                               0
    Total foreign                                      (69)                                           (824)
Total charge-offs                                   (1,757)                                         (1,783)
Recoveries:
Domestic
     Commercial                                        199                                              16
     Acceptances                                         0                                               0
     Residential                                         0                                               0
     Installment                                         1                                               2
Foreign                                                  0                                               0
     Total recoveries                                  200                                              18
Net (charge offs) recoveries                        (1,557)                                         (1,765)
Provision for credit losses                          4,989                                           3,040
Balance at end of the period                  $      9,157                                       $   5,725
Average loans                                 $    669,902                                       $ 485,758
Total loans                                   $    865,255                                       $ 535,559
Net charge-offs to average loans                    0.23%                                            0.36%
Allowance to total loans                            1.06%                                            1.07%
</TABLE>


The  following  tables  set  forth an  analysis  of the  allocation  of the
allowance  for credit  losses by category of loans and the  allowance for credit
losses  allocated  to foreign  loans.  The  allowance  is  established  to cover
potential  losses  inherent in the portfolio as a whole or is available to cover
potential losses on any of the Company's loans.
<PAGE>


                                      Allocation of Allowance for Credit Losses
                                                    (in thousands)

<TABLE>
<CAPTION>
                                               
                                                            As of                                    As of
Allocation of the allowance by category            September 30, 1997                      December 31, 1996
of loans:
<S>                                                     <C>                                         <C> 
Domestic:
     Commercial                                          $ 1,897                                    $1,900
     Acceptances                                             287                                       226
     Residential                                              56                                        54
     Installment                                               4                                         6
     Overdraft                                               100                                        58
         Total domestic                                    2,344                                     2,244
Foreign:                                       
     Government and official institutions                      0                                         0
     Banks and other financial institutions                3,562                                     2,112
     Commercial and industrial                             2,677                                       920
     Acceptances discounted                                  574                                       449
          Total foreign                                    6,813                                     3,481
Total                                                   $  9,157                                    $5,725
Percent of loans in each category to total
loans:
Domestic:                                                                                   
     Commercial                                            20.2%                                      20.1%
     Acceptances                                            4.3%                                       4.4%
     Residential                                            1.3%                                       2.0%
     Installment                                              0%                                       0.1%
     Overdraft                                                0%                                       0.4%
          Total domestic                                   25.8%                                      27.0%
Foreign:
     Government and official institutions                   0.0%                                       0.1%
     Banks and other financial institutions                36.1%                                      24.2%
     Commercial and industrial                             30.1%                                      33.6%
     Acceptances discounted                                 8.0%                                      15.1%
          Total foreign                                    74.2%                                      73.0%
Total                                                     100.0%                                     100.0%
</TABLE>

           Analysis of Allowance for Credit Losses Allocated to Foreign Loans
                                  (in thousands)
<TABLE>
<CAPTION>


                                                     At                                  At
                                         September  30, 1997                   December 31, 1996

<S>                                             <C>                                    <C>   
Balance, beginning of year                      $3,481                                 $3,380
Provision for credit losses                      3,401                                    925
Net charge-offs                                    (69)                                  (824)

Balance, end of period                          $6,813                                 $3,481
</TABLE>


The Company does not have a rigid chargeoff  policy but instead charges off
loans on a  case-by-case  basis as determined by management  and approved by the
Board of  Directors.  In some  instances,  loans may  remain  in the  nonaccrual
category  for a  period  of time  during  which  the  borrower  and the  Company
negotiate  restructured  repayment terms.  

The Company  attributes its favorable asset quality to the short-term nature of 
its loan portfolio, the composition of its  borrower  base,  the  importance  
that  borrowers  in the Region  attach to maintaining  their  continuing  
access to financing for foreign trade and to the Company's loan underwriting 
policies. 

The Company accounts for impaired loans in accordance with Financial Accounting 
Standards ("SFAS") No. 114, Accounting by Creditors  for   Impairment  of  a  
Loan.  Under  these  standards,  individually identified   impaired  loans 
are measured  based on the present value of payments expected  to be  
received,  using  the  historical  effective  loan  rate as the discount 
rate. Alternatively, measurement may also be based on observable market
prices or, for loans that are solely  dependent on the collateral for repayment,
measurement  may be based  on the fair  value  of the  collateral.  The  Company
evaluates  commercial  loans  individually  for  impairment,   while  groups  of
smaller-balance   homogeneous   loans   (generally   residential   mortgage  and
installment  loans) are  collectively  evaluated  for  impairment.  
<PAGE> 

The  following  table  sets  forth  information   regarding  the  Company's
nonperforming   loans  at  the  dates  indicated.   There  was  an  increase  in
nonperforming loans from December 31, 1996 to September 30, 1997.  However,  the
nonperforming  loans to total loans ratio has  improved  when  compared to prior
year results.improved when compared to prior year results.
 
                                                         Nonperforming Loans
                                                           (in thousands)

<TABLE>
<CAPTION>
                                                       September  30,                           December 31,
                                                           1997                                      1996         

<S>                                                       <C>                                      <C> 
Domestic:
     Non accrual                                          $3,057                                   $3,087
     Past due over 90 days and accruing                        0                                        0
          Total domestic nonperforming loans               3,057                                    3,087

Foreign
     Non accrual                                           3,642                                    1,654
     Past due over 90 days and accruing                        0                                      112
          Total foreign nonperforming loans                3,642                                    1,766

     Total nonperforming loans                           $ 6,699                                   $4,853
 
     Total nonperforming loans to total loans               0.77%                                   0.91%
     Total nonperforming assets to total assets             0.58%                                   0.64%
</TABLE>

At December 31, 1996, and September 30, 1997 the Company had no nonaccruing
investment  securities.  
<PAGE>

Due from Customers on Bankers'  Acceptances and Deferred Payment Letters of
Credit. 

Due from customers on bankers'  acceptances and deferred payment letters
of credit were $76.5  million and $3.7 million,  respectively,  at September 30,
1997 compared to $60.8 million and $7.3 million,  respectively,  at December 31,
1996.  These assets  represent a customers  liability  to the Company  while the
Company's  corresponding  liability to third parties is reflected on the balance
sheet as "Bankers  Acceptances  Outstanding"  and "Deferred  Payment  Letters of
Credit  Outstanding".  

Deposits  

Total deposits were $976.3 million at September 30, 1997 compared to $638.6  
million at December 31, 1996.  

The following  table provides  an  analysis  of the  Company's  average  
deposits  for  the  periods indicated.

                                                             Deposits
                                                           (in thousands)
<TABLE>
<CAPTION>
                                            Quarter Ended               Quarter Ended
                                            September 30,               December 31,
                                                 1997                        1996

<S>                                         <C>                         <C>      
Non-interest bearing demand deposits        $ 64,496                    $  54,875
NOW and money market accounts                 64,535                       60,795
Savings deposits                               4,499                        7,172
Time deposits                                636,725                      434,276
Time deposits from banks
   (International Banking Facilities)        129,580                       88,267

     Total deposits                         $899,835                     $645,385
</TABLE>



The increase in deposits  during the nine months ended  September  30, 1997
was primarily in time deposits and time deposits from banks due to the increased
activities with such banks.  

The primary sources of the Company's  domestic time deposits are  deposits  
from its  branches  located in Florida.  The Company has three Bank branches 
in Miami and one each in Tampa, Winter Haven,  Sarasota, and West Palm Beach.  
The average  customer  deposit  from the  branches is $40,000. During the 
quarter the Company  also  increased  deposits  from other  financial
institutions.  In  addition,  the Company  obtained  deposits  from the State of
Florida as the Bank is a qualified public depository pursuant to Florida law and
has also obtained  approximately $36 million of brokered  deposits  participated
out by the  broker  in  denominations  of less  than  $100,000  through a retail
certificate of deposit  program.  The brokered certificate of deposit program is
being used to further  diversify the Company's deposit base and as a cost 
effective alternative for the short term funding needs of the Company.  
<PAGE> 

The following table indicates the maturities and amounts of certificates of
deposit and other time deposits issued in  denominations  of $100,000 or more as
of June 30, 1997:

                                             Maturities of and Amounts
                                            of Certificates of Deposits
                                     and Other Time Deposits $100,000 or More
                                                  (in thousands)
<TABLE>
<CAPTION>



                                              Certificates                     Other Time
                                                of Deposit                          Deposits
                                           $100,000 or More                  $100,000 or More                    Total
<S>                                           <C>                                 <C>                          <C>     
Three months or less                          $115,110                            $89,830                      $204,940
Over 3 through 6 months                         76,586                              7,100                        83,686
Over 6 through 12 months                        93,175                              1,750                        94,925
Over 12 months                                  25,600                                  0                     25,600

     Total                                    $310,471                            $98,680                      $409,151 
</TABLE>

Stockholders' Equity

The Company's stockholders' equity at September 30, 1997, was $93.6 million
compared to $43.8 million at December 31, 1996 $38.6 million of which was 
obtained from the initial  public  offering and $11.2 million from retained  
earnings for the nine months ended September 30, 1997.

Interest Rate Sensitivity

The  following  table  presents the  projected  maturities or interest rate
adjustments of the Company's earning assets and interest-bearing funding sources
based upon the contractual maturities or adjustment dates at September 30, 1997.
The interest-earning assets and interest- bearing liabilities of the Company and
the related  interest rate  sensitivity gap given in the following table may not
be reflective of positions in subsequent periods.

                                              INTEREST RATE SENSITIVITY REPORT
                                                   (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                        September 30, 1997
                                     =========================================================================================
                                       0 to 30    31 to 90    91 to 180   181 to 365       1 to 5     Over 5
                                        Days        Days        Days         Days          Years       Years          Total
                                     =========================================================================================

<S>                                     <C>         <C>         <C>           <C>          <C>          <C>          <C>
Earning Assets:
   Loans                                $170,892    $234,436    $186,459      $81,663      $169,776     $22,029      $865,255

   Federal funds sold                     23,000           0           0            0             0           0        23,000

   Investment securities                  20,530       9,594      18,571        1,283         7,368       4,831        62,177

   Interest earning deposits with
     other banks                          21,872      25,475      30,314       13,234             0           0        90,895
                                     -------------------------------------------------   -----------------------    ----------
Total
                                         236,294     269,505     235,344       96,180       177,144      26,860     1,041,327
                                     -------------------------------------------------   -----------------------    ----------
Funding Sources:                                                                          
   Savings and transaction deposits
                                          15,851      48,017                                                           63,868
   Time deposits of $100 or more
                                          52,969      62,141      76,586       93,175        25,491         109       310,471
   Time deposits under $100
                                          31,412      92,721      77,700      177,093        10,269                   389,195
   Other time deposits
                                          65,474      24,482       7,210        1,750             0           0        98,916
   Funds overnight
                                          46,400           0           0            0             0           0        46,400
                                     -------------------------------------------------   -----------------------    ----------
Total                                                                     
                                        $212,106    $227,361    $161,496     $272,018       $35,760        $109      $908,850
                                     =================================================   =======================    ==========
Interest sensitivity gap
                                         $24,188     $42,144     $73,848    ($175,838)     $141,384     $26,751      $132,477
                                     =================================================   =======================    ==========

Cumulative gap                           $24,188     $66,332    $140,180     ($35,658)     $105,726    $132,477
                                     =================================================   =======================
   Cumulative gap as a percentage
   of total earning assets                 2.32%       6.37%      13.46%       -3.42%        10.15%      12.72%
                                     =================================================   =======================
</TABLE>


<PAGE>


Liquidity

The  Company's  principal  sources of liquidity and funding are its diverse
deposit   base  and  the  sales  of  bankers'   acceptances   as  well  as  loan
participations.  The level and  maturity  of deposits  necessary  to support the
Company's  lending and investment  activities is determined  through  monitoring
loan demand and through its asset/liability  management process.  Considerations
in managing the Company's  liquidity  position include scheduled cash flows from
existing assets,  contingencies and liabilities,  as well as projected liquidity
needs arising from anticipated extensions of credit. Furthermore,  the liquidity
position is  monitored  daily by  management  to  maintain a level of  liquidity
conducive to efficient  operations and is continuously  evaluated as part of the
asset/liability management process.  

Historically, the Company has increased its level of deposits to allow for its 
planned asset growth.  Customer deposits have increased  through the branch 
network,  as well as deposits related to the trade activity.  The level of 
deposits is also  influenced by general  interest rates, economic  conditions 
and  competition,  among other things.  

The majority of the Company's deposits are short-term and closely match the 
short-term nature of the Company's assets.  See "Interest Rate Sensitivity  
Report." At September 30, 1997 interest-earning  assets  maturing  within 
six  months  were  $741.1  million, representing 71% of total earning  assets.  
The  short-term  nature of the loan portfolio and the fact that a portion of 
the loan portfolio consists of bankers' acceptances  provides  additional  
liquidity  to the Company.  Liquid  assets at September 30, 1997 were $167.8 
million,  14.5% of total assets, and consisted of cash and cash  equivalents,  
due from banks-time and foreign  treasury bills. At September  30, 1997 the 
Company had been  advised of $95.5  million in available interbank funding.

Capital Resources

The  Company  and the  Bank  are  subject  to  various  regulatory  capital
requirements  administered  by the  federal  banking  agencies.  Failure to meet
minimum  capital  requirements  can result in  certain  mandatory  and  possibly
additional discretionary actions by regulators that, if undertaken, could have a
direct material effect on the Company's  financial  statements.  The regulations
require the Company and the Bank to meet specific  capital  adequacy  guidelines
that involve  quantitative  measures of their  assets,  liabilities  and certain
off-balance sheet items as calculated under regulatory accounting practices. The
Company's and the Bank's capital  classification  is also subject to qualitative
judgments by the regulators  about interest rate risk,  concentration  of credit
risk and other  factors.  

Quantitative  measures  established  by  regulation to ensure  capital  
adequacy  require the Company and the Bank to maintain  minimum amounts and 
ratios (set forth in the table  below) of Tier I capital (as defined
in the  regulations) to total averages assets (as defined) and minimum ratios of
Tier I and total capital (as defined) to risk-weighted assets (as defined).  The
Company's and the Bank's actual capital amounts and ratios are also presented in
the table. 

As indicated in the  stockholder's  equity section above, the Company
completed  its  initial  public  offering  in March  1997 which  resulted in
significantly  higher  capital  ratios being  reported for quarterly periods in
1997. The Company expects to continue to grow and, accordingly, the ratios will
continue to reduce. 


                                                       Company Capital Ratios
                                                       (Dollars in thousands)

<TABLE>
<CAPTION>


                                   September 30, 1997                                    December 31, 1996      
<S>                             <C>                         <C>                       <C>                            <C>            
Tier 1 risk-weighted       
Capital:                                                                             
     Actual                     $ 91,969                    13.3%                     $41,634                        10.2%
     Minimum                    $ 27,710                     4.0%                     $16,329                         4.0%
Total risk-weighted
capital:                                                                                                         
     Actual                     $100,635                    14.5%                     $46,744                        11.5%
     Minimum                    $ 55,420                     8.0%                     $32,657                         8.0%
Leverage:
     Actual                     $ 91,969                     8.4%                     $41,634                         5.8%
     Minimum                    $ 32,316                     3.0%                     $21,713                         3.0%
</TABLE>



<PAGE>


                                                         Bank Capital Ratios
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>

                                                       September  30, 1997                    December 31, 1996
                                                                                                                     
<S>                                                       <C>                   <C>             <C>                      <C>  
Tier 1 risk-weighted capital:                             $82,317              12.0%          $41,351                   10.1%
     Actual                                               $41,238               6.0%          $24,534                    6.0%
     Minimum to be well capitalized                       $27,492               4.0%          $16,356                    4.0%
     Minimum to be adequately capitalized
Total risk-weighted capital:                              $90,915              13.2%          $46,470                   11.4%
     Actual                                               $68,730              10.0%          $40,890                   10.0%
     Minimum to be well capitalized                       $54,984               8.0%          $32,712                    8.0%
     Minimum to be adequately capitalized
Leverage:                                                 $82,317               7.7%          $41,351                    5.7%
     Actual                                               $53,458               5.0%          $36,261                    5.0%
     Minimum to be well capitalized                       $42,767               4.0%          $29,009                    4.0%
     Minimum to be adequately capitalized
</TABLE>

Results of Operation-Nine Months

Net Interest Income

Net interest income is the difference  between  interest and fees earned on
loans and  investments and interest paid on deposits and other sources of funds,
and it constitutes the Company's principal source of income. Net interest income
increased  to $27.4  million for the nine months ended  September  30, 1997 from
$20.2 million for the same period in 1996, a 36% increase.  The increase was due
largely to the growth in average  earning  assets offset,  to some extent,  by a
decrease in net interest  margin.  Average  earning  assets  increased to $837.5
million for the nine months ended September 30, 1997 from $571.9 million for the
same period in 1996, a 46% increase.  Average loans and  acceptances  discounted
increased to $669.9  million for the nine months ended  September  30, 1997 from
$463.8  million  for the same  period in 1996,  a 44%  increase,  while  average
interest  earning  deposits with other banks increased to $106.3 million for the
nine months ended  September  30, 1997 from $60.4 million for the same period in
1996, a 76% increase.  Net interest margin decreased to 4.3% for the nine months
ended September 30, 1997 from 4.7% for the same period in 1996, a 40 basis point
decrease,  and the margin  decreased  slightly  when  compared  to the  previous
quarter  margin of 4.4%.  The primary  reasons for this  decrease  were (i) loan
yields relative to reference rates decreased in certain  countries in the Region
as a result of perceived economic stability and lower credit risk, (ii) loans to
larger corporate and bank customers,  which command more competitive pricing, 
and (iii) excess liquidity in the Region which has general effect of lowering 
rates. 

Interest income increased to $57.7 million for the nine months  ended  
September  30, 1997 from $41.2  million for the same period in 1996, a 40%  
increase,  reflecting  an increase in loans in the Region and the United  
States,  partially  offset by a decrease in prevailing  interest rates  and a  
tightening  of loan  spreads  in the  Region  as  discussed  above. Interest 
expense  increased to $30.3 million for the nine months ended September 30,
1997  from  $21.0  million  for the same  period in 1996,  a 44%  increase,
reflecting   the   additional   deposits   to   fund   asset   growth.   Average
interest-bearing  deposits increased to $721.5 million for the nine months ended
September  30 1997  from  $503.5  million  for the same  period  in 1996,  a 43%
increase.  The growth in deposits was primarily a result of the Company  seeking
additional  deposits from its branch network to fund asset growth. The Company's
time  deposits from banks also  increased to $121.3  million for the nine months
ended  September  30,  1997  from  $95.1  million  for the same  period in 1996.

Provision for Credit Losses 

The Company's provision for credit-losses  increased to $5.0 million for the 
fiscal year ended  September  30, 1997 from $2.4 million for the same period 
in 1996, a 108%  increase.  Net loan  chargeoffs  during the first nine months 
of fiscal year 1997 amounted to $1.6 million compared to $1.8 million for
the fiscal year 1996. The  allowance  for credit  losses was  increased to $9.2 
million at September  30, 1997 from $5.7 million for the end of the fiscal year 
1996, a 60% increase. The increase was primarily to support the growth of the 
Company's loan portfolio.  The ratio of the allowance for credit losses to 
total loans decreased to 1.06% at September 30, 1997 from approximately  
1.08% at September  30, 1996.  

Non-Interest  Income  

Non-interest income  increased  to $11.3  million for the fiscal year ended 
September  30,  1997  from  $7.8  million  for the same  period  
in 1996,  a 45% increase.  Trade  finance  fees and  commissions  increased  
by $2.6 million due largely to higher  letters of credit volume.  In addition, 
the Company had more lending  facility  fees  charged  during the first nine  
months of the fiscal year 1997 compared to fiscal year 1996.  Capital  market 
fees increased by $1.3 million as a result of completion of various   capital 
market   transactions. The increased activity reflects globalization  of  
investments  in the Region which in turn has created  more  capital  market 
opportunities in the Region. Customer service fees decreased by $489 thousand 
as a result  of lower  overdrafts  experienced  in the  period.  The  other  
income category as of September  30, 1997  includes  $109  thousand gain on 
sale of the minority  investment in a financial  institution  in El Salvador.  

The following table sets forth details regarding the components of non-interest
income for the periods indicated.
<PAGE>


                                                         Non-Interest Income
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                      For the Nine Months Ended September 30,
                                                                                    1996 to 1997
                                                         1996                        % Change                   1997
<S>                                                     <C>                               <C>                   <C>   
Trade finance fees and commissions                      $6,494                            39%                   $9,055
Capital market fees, net                                    82                         1,573                     1,372
Customer service fees                                    1,056                           (46)                      567
Other                                                      170                            91                       324

Total non-interest income                               $7,802                            45%                  $11,318
</TABLE>


Operating Expenses

Operating  expenses  increased  to $16.3  million for the nine months ended
September  30,  1997 from  $13.7  million  for the same  period  in 1996,  a 19%
increase.  Employee  compensation and benefits increased to $8.8 million for the
nine months  ended  September  30, 1997 from $7.2 million for the same period in
1996, a 22%  increase.  This was  primarily  due to an increase in the number of
employees to 253 at September 30, 1997 from 214 for the same period in 1996.  
The majority of the additional employees  were added to support the two 
branches  opened during the  first  nine  months  of  1997.  Occupancy  
expenses  have  remained  relatively  consistent  at $2.3 million.  Other  
expenses  increased  to $5.2  million for the nine months ended September 30, 
1997 from $4.4 million for the same period in 1996,  primarily due
to a loss  realized in  liquidating  inventory  which was  acquired in 1996 as a
result of a default on a loan.  Directors  fees decreased by 23% during the nine
months ended September 30, 1997.  Insurance and examination fees (FDIC and OCC)
increased to $249 thousand for the nine months ended September 30, 1997 from
$119 thousand for the same  period  in 1996.  As a result  of the  enactment 
of the  Federal  Deposit Insurance  Funds Act of 1996 on  September  30, 1996,
commercial  banks are now required to pay part of the interest on the Financing 
Corporation ("FICO") bonds issued  to deal  with the  savings  and loan  crisis 
of the  late  1980's.  The Company's  efficiency ratio remains favorably below
the industry average at 42%. 

The  following  table sets forth detail  regarding  the  components of
operating expenses for the periods indicated. 


                                                         Operating Expenses
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                 For the Nine Months Ended September 30,
                                                                                     1996 to 1997
                                                             1996                      % Change                   1997 
<S>                                                        <C>                              <C>                <C>    
Employee compensation and benefits                         $ 7,187                          22%                $ 8,796
Occupancy and equipment                                      2,179                           6                   2,318
Other operating expenses                                     3,421                          19                   4,326
Directors' fees                                                823                         (23)                    634
Insurance and examination fees (FDIC and
      OCC)                                                     119                         (53)                    249 
                                                                                                                
Total operating expenses                                   $13,729                          15%                $16,323
</TABLE>



Results of Operation-Quarter

Net Interest Income

Net  interest  income  increased  to $10.5  million for the  quarter  ended
September  30,  1997  from  $7.1  million  for the same  period  in 1996,  a 48%
increase.  The primary  increase was in average  earning assets offset,  to some
extent,  by a decrease in net interest margin.  Average earning assets increased
to $974.6  million for the quarter ended  September 30, 1997 from $632.6 million
for the same  period in 1996,  a 52%  increase.  Average  loans and  acceptances
discounted  increased to $786.6 million for the quarter ended September 30, 1997
from $517.6  million for the same period in 1996, a 38% increase,  while average
interest  earning  deposits with other banks increased to $10,0.3 million for 
the quarter ended September 30, 1997 from $77.8 million for the same period in 
1996, a 29%  increase.  Net interest  margin  decreased to 4.2% for the quarter 
ended September 30, 1997 from 4.4% for the same period in 1996, a decrease of 
20 basis points,  and the  margin  decreased  by 30 basis  points  when  
compared  to the previous quarter margin of 4.5%.  

Interest income increased to $22.6 million for the quarter  ended  September 30,
1997 from $15.0 million for the same period in 1996,  a 51%  increase.  Interest
expense  increased  to $12.0  million for the quarter ended  September 30, 1997 
from $7.8 million for the same period in 1996, a 54% increase, reflecting the 
additional deposits to fund asset growth. Average interest-bearing  deposits  
increased  to $835.3  million for the quarter  ended September  30 1997  
from  $558.8  million  for the same  period  in 1996,  a 49% increase.  
The growth in deposits was primarily a result of the Company  seeking
new deposits of to fund asset  growth.  The  Company's  time deposits
from banks also increased to $129.6 million for the quarter ended  September 30,
1997 from $102.7 million for the same period in 1996.


<PAGE>

YIELDS EARNED AND RATES PAID 
(Dollars in thousands)


<TABLE>
<CAPTION>
                                                            For Nine Months Ended                       For Nine Months Ended
                                                              September 30, 1996                         September 30, 1997

                                                      Average       Revenue/      Yield/    Average   Revenue/    Yield/
                                                      Balance       Expense        Rate     Balance   Expense     Rate

<S>                                                       <C>       <C>          <C>      <C>         <C>         <C>
Total Interest Earning Assets
                                                      
Loans:                                                                                             
                                                                                                   
    Commerical loans                                      354,253   26,009(1)    9.68%     544,636    38,474(1)    9.32%
    Mortgage loans                                         11,161      709       8.38%      10,898       692       8.37%
    Installment loans                                         383       28       9.64%         347        25       9.50%
    Acceptances Discounted                                 91,941    6,981      10.01%     107,663     7,913       9.69%
    Overdrafts                                              6,091      818      17.71%       6,358       923      19.14%
                                                                                                                 
Total Loans (1)                                           463,829   34,545       9.82%     669,902    48,027       9.45%
                                                                                                   
Investments                                                26,617    1,525       7.56%      42,191     2,058       6.43%
Federal funds sold                                         21,152      863       5.38%      19,132       791       5.45%
Time Deposit with Banks                                    60,354    4,279       9.35%     106,318     6,863       8.51%
 
     Total Investments and Time Deposits with Banks       108,123    6,668       8.13%     167,641     9,712       7.64%

Total Interest Earning assets                             571,952   41,212       9.50%     837,543    57,739       9.09%

Total non interest earning assets                          88,467                           95,480               
                                                                                                                 
Total Assets                                              660,419                          933,023               
                                                                                                                 
                                                                                                   
Interest Bearing Liabilities                                                                       
                                                                                                   
Deposits:                                                                                          
                                                                                                   
    Super NOW, NOW                                         16,176      400       3.26%      15,635       226       1.91%
    Money Market                                           40,342    1,505       4.92%      44,339     1,554       4.62%
    Presidential Market                                     3,443      100       3.83%       3,341        72       2.84%
    Super Savings, Savings                                  9,127      222       3.21%       4,402       104       3.12%
    Certificate of Deposits (including IRA)               339,198   14,961       5.82%     532,465    23,379       5.79%
    Time Deposits with Banks (IBF)                         95,063    3,817       5.29%     121,283     4,824       5.24%
    Collateral Accounts                                       133        2       1.98%          61         1       2.16%

Total Deposits                                            503,482   21,007       5.50%     721,526    30,159       5.51%
                                                                                         
Federal Funds Purchased                                       321       14       5.75%       4,062       173       5.62%

Other Borrowings                                              219        0       0.00%           0         0       0.00%

Total interest bearing liabilities                        504,022   21,020       5.50%     725,588    30,333       5.51%
                                                                                         
Non interest bearing liabilities                                                                                 
                                                                                                                 
    Demand Deposits                                        46,727                           60,992               
    Other Liabilities                                      71,454                           70,798               
                                                                                                                 
Total non interest bearing liabilities                    118,181                          131,790               
                                                                                                                 
Stockholders' equity                                       38,216                           68,760               
                                                                                                                 
Total liabilities and stockholder's equity                660,419                          926,138               
                                                      ===========                        =========

Net Interest income / net interest spread                           20,191       4.00%                27,406       3.58%
                                                                                         
Margin
Interest income / interest earning assets                                        9.50%                             9.09%
                                                                                         
Interest expense / interest earning assets                                       4.85%                             4.78%
                                                                                                                 
    Net interest margin                                                          4.66%                             4.32%
</TABLE>
                                                                  
(1)  Interest income for calculating yields includes $214
& $219  thousand of loan fees for the year to date ended
September 30, 1996 and September 30, 1997,
respectively.


<PAGE>

YIELDS EARNED - DOMESTIC AND FOREIGN EARNING ASSETS
(dollars in thousands)
<TABLE>
<CAPTION>
                                                     Nine Months Ended September 30, 1996   Nine Months Ended September 30, 1997
                                                                         Avg     %of                             % of
                                                    Average              Yield   Avg      Average              Average    Average
                                                    Balance  Interest    Rate   Assets    Balance   Income    Yield/Rate   Assets
<S>                                                   <C>      <C>        <C>     <C>      <C>       <C>        <C>        <C>
Total Interst Earning Assets
                                                                                    
Loans:                                                                                               
     Domestic                                         157,185  12,607(1)  10.5%   23.8%    168,643   13,198 (1) 10.3%      18.1%
     Foreign                                          306,644  21,938      9.4%   46.4%    501,259   34,829      9.2%      53.7%
                                                    --------- -------   ------- -------  ------------------    -----------------
Total Loans                                           463,829  34,545      9.8%   70.2%    669,902   48,027      9.5%      71.8%
                                                                                                   
Investments and time deposits with banks                                                                              
   Domestic                                            41,976   1,982      6.2%    6.4%     53,296    3,407      8.4%       5.7%
   Foreign                                             66,147   4,686      9.3%   10.0%    114,345    6,305      7.3%      12.3%
                                                    --------- -------   ------- -------  ------------------    -----------------
     Total Investments and Time Deposit  with Banks   108,123   6,668      8.1%   16.4%    167,641    9,712      7.6%      18.0%

Total Interest Earning assets                         571,952  41,213      9.5%   86.6%    837,543   57,739      9.1%      89.8%
                                                              =======                               =========  ========

Total non interest earning assets                      88,467                          13.4%     95,480                    10.2%
                                                                                     -------                               ------
                                                                                                                              
Total Assets                                          660,419                         100.0%    933,023                   100.0%
                                                    =========                        =======  =========                  =======
</TABLE>

(1)  Interest income for calculating yields includes $214
and $219 thousand of loan fees for the nine months
ended September 30, 1996 and September 30, 1997,
respectively.

 



<PAGE>


Provision for Credit Losses

The Company's provision for credit-losses increased by $2.1 million for the
quarter ended  September 30, 1997 from $1.5 million for the same period in 1996,
a 40% increase. Net loan chargeoffs during the third quarter in fiscal year 
1997  amounted to $497  thousand  compared to $1.8 million for the fiscal year
1996.  The  allowance  for credit  losses was  increased to $9.2  million at  
September  30, 1997 from $5.7 million at the end of the fiscal year 1996,  a 
60%  increase.  The  increase was primarily to support the growth of the 
Company's  loan  portfolio.  The ratio of the  allowance  for  credit  losses  
to  total  loans   decreased   slightly  to approximately  1.06% at September 
30, 1997 from approximately 1.08% at September 30, 1996.  

Non-Interest  Income  

Non-interest  income increased to $4.2 million for the quarter ended  September 
30, 1997 from $2.9 million for the same  period  in 1996,  a 46%  increase.  
Trade  finance  fees  and  commissions increased by $652 thousand due largely 
to higher  letters of credit  volume.  In addition,  the Company had more 
lending  facility fees charged  during the third quarter  of fiscal year 1997  
compared  to the same  period  in fiscal year 1996 as a result of the loan
growth  experienced  during  the third  quarter  of fiscal year 1997.  Capital  
market  fees increased by $727 thousand as a result of various  capital market  
transactions. Customer  service fees decreased by $69 thousand as a result of 
lower overdrafts experienced in the period.  

The following table sets forth details regarding the components of non-interest 
income for the periods indicated. 

                                                        Non-Interest Income
                                                       (Dollars in thousands)

<TABLE>
<CAPTION>
                                                           For the Quarter Ended September 30,
                                                                                   1996 to 1997
                                                         1996                        % Change                   1997
<S>                                                     <C>                                  <C>                <C>   
Trade finance fees and commissions                      $2,497                               26%                $3,149
Capital market fees, net                                    81                              897                    808
Customer service fees                                      215                              (32)                   146
Other                                                       67                               12                     75 

Total non-interest income                               $2,860                               46%                $4,178 
</TABLE>
                                                                               


Operating Expenses

Operating  expenses  increased  to  $5.4  million  for  the  quarter  ended
September  30,  1997  from  $4.7  million  for the same  period  in 1996,  a 15%
increase.  Employee  compensation and benefits increased to $3.3 million for the
quarter ended  September 30, 1997 from $2.6 million for the same period in 1996,
a 25% increase. This was primarily due to an increase in the number of employees
to 253 at  September  30, 1997 from 214 for the same  period in 1996,  mostly in
employees  added to support the two branches  opened during the first and second
quarters of 1997, as well as salary increases for existing  personnel.  
Occupancy expenses increased to $840 thousand in the third quarter of 1997, a 
18% increase when compared to the third quarter in 1996. Other expenses 
decreased slightly to $1.3 million for the quarter ended  September 30, 1997 
from $1.4 million for the same period in 1996.
<PAGE>


The following table sets forth detail regarding the components of operating
expenses for the periods indicated. 


                                                         Operating Expenses
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>
                                                              For the Quarter Ended September 30,
        

                                                                                   1996 to 1997
                                                          1996                       % Change                     1997 
<S>                                                      <C>                               <C>                 <C>   
Employee compensation and benefits                       $2,609                            25%                 $3,267
Occupancy and equipment                                     711                            18                     840
Other operating expenses                                  1,096                            (4)                  1,053
Directors' fees                                             272                           (23)                    210
Insurance and examination fees (FDIC and                                                                           
      OCC)                                                   42                            79                      75
                                                                                                                
Total operating expenses                                 $4,730                            15%                 $5,445 
</TABLE>


<PAGE>


                                     HAMILTON BANCORP, INC. AND SUBSIDIARY

                                       CALCULATION OF EARNINGS PER SHARE
                                (Dollars in thousands, except per share data)
EXHIBIT 1

<TABLE>
<CAPTION>
                                                 Three Months Ended                     Nine Months Ended
                                                    September 30,                          September 30,
                                        ---------------------------------         --------------------------------------
                                           1997                 1996                1997                1996
                                        ---------        ----------------         -----------       -------------

<S>                                         <C>                 <C>                 <C>                 <C>                       
Primary
Weighted average number of
  common shares outstanding                 9,827,949           5,205,030           8,462,114           5,205,030

Common equivalent shares
  outstanding - options                       366,129             225,000             366,129             225,000
                                     ----------------     ---------------         -----------       -------------

Total common and common
  equivalent shares outstanding            10,194,078           5,430,030           8,828,242           5,430,030

Net income                                     $4,630              $2,340             $11,193              $7,319

Primary earings per share                       $0.45               $0.43               $1.27               $1.35

Fully diluted:

Weighted average number of
  common shares outstanding                 9,827,949           5,205,030           8,462,114           5,205,030

Common equivalent shares
  outstanding - options                       371,156             225,000             371,156             225,000
                                     ----------------     ---------------         -----------       -------------

Total common and common
  equivalent shares outstanding            10,199,105           5,430,030           8,833,270           5,430,030

Net income                                     $4,630              $2,340             $11,193              $7,319

Fully diluted earnings per share                $0.45               $0.43               $1.27               $1.35
</TABLE>