<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 June 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)

                    Florida 65-0149935
     (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 X No ____

              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                                                       9827949





<PAGE>

                                    HAMILTON BANCORP INC. AND SUBSIDIARY
                                    CONSOLIDATED STATEMENTS OF CONDITION
                                               (In thousands)
<TABLE>
<CAPTION>
                                                                               June 30,         December 31,
                                                                                 1997               1996
                                                                           ----------------    --------------
                                     ASSETS                                (Unaudited)          (Audited)                    
                                                                                     ----------------
<S>                                                                                <C>               <C>

CASH AND DEMAND DEPOSITS WITH OTHER BANKS                                           $20,742           $14,806
FEDERAL FUNDS SOLD                                                                   21,000            18,300
                                                                           ----------------    --------------
      Total cash and cash equivalents                                                41,742            33,106
INTEREST EARNING DEPOSITS WITH  OTHER BANKS                                         128,650            80,477
SECURITIES AVAILABLE FOR SALE                                                        72,780            29,020
LOANS-NET                                                                           709,670           527,279
DUE FROM CUSTOMERS ON BANKERS ACCEPTANCES                                            68,453            60,761
DUE FROM CUSTOMERS ON DEFERRED PAYMENT LETTERS OF CREDIT                              5,527             7,343
PROPERTY AND EQUIPMENT-NET                                                            4,484             3,460
ACCRUED INTEREST RECEIVABLE                                                           9,499             6,471
GOODWILL-NET                                                                          2,096             2,183
OTHER ASSETS                                                                          3,950             5,470
                                                                           ----------------    --------------
TOTAL                                                                            $1,046,851          $755,570
                                                                           ================    ==============
                                    LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                           
DEPOSITS                                                                           $876,877          $638,641
BANKERS ACCEPTANCES OUTSTANDING                                                      68,453            60,761
DEFERRED PAYMENT LETTERS OF CREDIT OUTSTANDING                                        5,527             7,343
OTHER LIABILITIES                                                                     7,041             5,025
                                                                           ----------------    --------------
     Total liabilities                                                              957,898           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 June 30, 1997.                                                 98                52
     Capital surplus                                                                 56,158            17,317
     Retained earnings                                                               32,676            26,432
     Net unrealized gain (loss) on securities available for sale, net of taxes           21               (2)
                                                                           ----------------    --------------
     Total stockholders' equity                                                      88,953            43,800
                                                                           ----------------    --------------
TOTAL                                                                            $1,046,851          $755,570
                                                                           ================    ==============

</TABLE>

See accompanying notes to consolidated financial statements.


                                                                 1

<PAGE>




                               HAMILTON BANCORP INC. AND SUBSIDIARY
                                 CONSOLIDATED STATEMENTS OF INCOME
                            (Dollars in thousands except per share data)
<TABLE>
<CAPTION>
                                                                   Three Months Ended June 30,          Six Months Ended June 30, 
                                                                         1997            1996                1997          1996
                                                                    -------------- ----------------      ------------------------
INTEREST INCOME:                                                              (Unaudited)                   (Unaudited)
                                                                                   ----------------        ----------------
<S>                                                                       <C>              <C>           <C>             <C>

  Loans, including fees                                                    $15,995          $10,959      $29,186         $22,009
  Deposits with other banks                                                  2,738            1,398        4,621           2,476
  Securities                                                                   638              497          931           1,071
  Federal funds sold                                                           206              320          434             702
                                                                    -------------- ----------------  ---------------------------
    Total                                                                   19,577           13,174       35,172          26,258
INTEREST EXPENSE:
  Deposits                                                                   9,954            6,596       18,191          13,184
  Federal funds purchased                                                       60                1          109               1
                                                                    -------------- ----------------  ---------------------------
     Total                                                                  10,014            6,597       18,300          13,185
                                                                    -------------- ----------------  ---------------------------
NET INTEREST INCOME                                                          9,563            6,577       16,872          13,073
PROVISION FOR CREDIT LOSSES                                                  2,191              450        2,939             950
                                                                    -------------- ----------------  ---------------------------
NET INTEREST INCOME AFTER PROVISION FOR CREDIT
  LOSSES                                                                     7,372            6,127       13,933          12,123
NON-INTEREST INCOME:
  Trade finance fees and commissions                                         3,148            2,096        5,906           3,997
  Capital market fees, net                                                     478                0          564               1
  Customer service fees                                                        165              198          421             841
  Other                                                                        180               69          249             103
                                                                    -------------- ----------------  ---------------------------
     Total                                                                   3,971            2,363        7,140           4,942
                                                                    -------------- ----------------  ---------------------------
OPERATING EXPENSES:
  Employee compensation and benefits                                         2,826            2,304        5,529           4,578
  Occupancy and equipment                                                      796              747        1,478           1,468
  Other                                                                      1,933            1,412        3,871           2,953
                                                                    -------------- ----------------  ---------------------------
     Total                                                                   5,555            4,463       10,878           8,999
                                                                    -------------- ----------------  ---------------------------
INCOME BEFORE PROVISION FOR INCOME TAXES                                     5,788            4,027       10,195           8,066
PROVISION FOR INCOME TAXES                                                   2,047            1,564        3,632           3,087
                                                                    -------------- ----------------  ---------------------------
NET INCOME                                                                  $3,741           $2,463       $6,563          $4,979
                                                                    ============== ================  ===========================
NET INCOME PER COMMON AND COMMON EQUIVALENT SHARES:
     PRIMARY                                                                 $0.37            $0.45        $0.81           $0.92
                                                                    ============== ================  ===========================
     FULLY DILUTED                                                           $0.37            $0.45        $0.81           $0.92
                                                                    ============== ================  ===========================
AVERAGE WEIGHTED SHARES OUTSTANDING
     PRIMARY                                                            10,133,728        5,430,030    8,094,278       5,430,030
                                                                    ============== ================  ===========================
     FULLY DILUTED                                                      10,179,448        5,430,030    8,151,024       5,430,030
                                                                    ============== ================  ===========================

</TABLE>

See accompanying notes to consolidated financial statements.



                                                                 2

<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
                                                                                                           Available        Total
                                         Preferred Stock      Common Stock       Capital    Retained     For Sale     Stockholders'
                                        ------------------   -----------------------
                                         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 2,400,000 shares of common
  stock in public offering, net                             2,400,000         24     33,673                                  33,697

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

Net income for the six months ended
  June 30, 1997                                                                                   6,563                       6,563

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

Sale of 360,000 shares of common
  stock in public offering, net                               360,000          3      5,186                                   5,189
                                     ---------  -------   ------------  ---------   --------   ---------  -------------  ----------

Balance as of June 30, 1997 (unaudited)     0       $0      9,827,949        $98    $56,158     $32,676            $21      $88,953
                                    =========  =======   ============  =========   ========   =========  =============  ===========


</TABLE>


                                                                 3

<PAGE>



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



                                                                                         Six Months Ended June 30,
                                                                               ----------------------------------------------
                                                                                       1997                     1996
                                                                               ---------------------    ---------------------
                                                                                                (Unaudited)
                                                                                           ---------------------
<S>                                                                                          <C>                      <C>   
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income                                                                               $6,563                   $4,979
       Adjustments to reconcile net income to net cash
         provided by operating activities:
         Depreciation and amortization                                                           509                      545
         Provision for credit losses                                                           2,939                      950
         Deferred tax benefit                                                                  (479)                    (174)
         Proceeds from the sale of bankers acceptances and
           loan participations, net of loan participations
           purchased                                                                          25,173                   36,746
       Increase in accrued interest receivable and other assets                              (1,351)                  (1,267)
       Increase (decrease) in other liabilities                                                2,017                  (1,013)
                                                                               ---------------------    ---------------------
         Net cash provided by operating activities                                            35,371                   40,766
                                                                               ---------------------    ---------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Increase in interest-earning deposits with other banks                                 (48,174)                 (35,280)
     Purchase of securities available for sale                                              (92,859)                 (20,976)
     Proceeds from maturities of securities held to maturity                                       0                   20,662
     Proceeds from sales and maturities of securities available
       for sale                                                                               49,444                    2,923
     Increase in loans-net                                                                 (210,503)                 (92,409)
     Purchases of property and equipment-net                                                 (1,446)                    (334)
                                                                               ---------------------    ---------------------
         Net cash used in investing activities                                             (303,538)                (125,414)
                                                                               ---------------------    ---------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Increase in deposits-net                                                                238,236                   55,353
     Net Proceeds from issuance of common stock IPO                                           38,886                        0
     Cash dividends on preferred stock                                                         (319)                    (354)
                                                                               ---------------------    ---------------------
         Net cash provided by financing activities                                           276,803                   54,999
NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                                                  8,636                 (29,649)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE
  PERIOD                                                                                      33,106                   46,589
                                                                               ---------------------    ---------------------
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD                                               $41,742                  $16,940
                                                                               =====================    =====================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:
  Interest paid during the period                                                            $17,563                  $12,948
  Income taxes paid during the period                                                         $3,827                   $2,885

</TABLE>

See accompanying notes to consolidated statement.


                                                                 4

<PAGE>



                             HAMILTON BANCORP AND SUBSIDIARY

                        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                    JUNE 30, 1997

NOTE 1:  Basis of Presentation

The  consolidated  statements of condition for Hamilton  Bancorp and  Subsidiary
(the  "Company")  as of June  30,  1997  and  December  31,  1996,  the  related
consolidated  statements of income,  stockholders' equity and the cash flows for
the six months  ended June 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.







                                                                 5

<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".

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

Total  consolidated  assets increased $291.3 million,  or 39 %, during the first
six months of 1997,  which  included an  increase of $277.0  million in interest
earning assets and an increase $14.3 million in non-interest earning assets. The
increase  in  consolidated  assets  reflects  increases  of  $182.4  million  in
loans-net and $48.2 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 from banks and deposits from 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 with Other 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 $41.7 million at June 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 $128.7 million at June
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 six months ended June 30, 1997. The short term nature
of these deposits allows the Company the flexibility to redeploy the assets into
higher yielding loans which are largely related to the financing of trade.

Investment  securities  increased  to $72.8  million at June 30, 1997 from $29.0
million at December 31, 1996. The increase has been  primarily in U.S.  Treasury
bill  obligations  and  to a  lesser  extent  foreign  government  bills.  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.


                                                                 6

<PAGE>




Loans

The Company's loan portfolio  increased by $182.4 million,  or 34.4%, during the
first six 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  and  the  consequent
increased trade activity. 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 $36.6 million and loans to banks and other financial institutions -
foreign  increased by $136.3 million.  Details on the loans by type are shown in
the table below. At June 30, 1997 approximately 26.4% of the Company's portfolio
consisted of loans to domestic  borrowers and 73.6% of the  Company's  portfolio
consisted  of loans to  foreign  borrowers.  The  Company's  loan  portfolio  is
relatively  short-term,  as  approximately  76.1% of loans at June 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.

                                                            Loans by Type
                                                           (in thousands)


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

     Commercial (1)                                               $146,879              $110,322
     Acceptances discounted                                         31,853                23,314
     Residential mortgages                                          10,803                10,610
     Installment                                                       276                   428

    Subtotal Domestic                                              189,811               144,674

Foreign:


     Banks and other financial institutions                        265,659               129,376
     Commercial and industrial (1)                                 182,363               179,824
     Acceptances discounted                                         80,993                80,935
    Government and official institutions                               771                   750

     Subtotal Foreign                                              529,786               390,885

          Total loans                                             $719,597              $535,559

</TABLE>

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





                                                                 7

<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 outstandings by country. The aggregate amount of the
Company's  crossborder  outstandings  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 June 30, 1997 approximately 42.23% in principal amount of the Company's loans
were  outstanding to borrowers in five  countries  other than the United States:
Guatemala  (11.30%),  Panama (8.28%),  Ecuador (8.18%),  El Salvador (6.49%) and
Peru (7.98%).

                                                          Loans by Country
                                                       (Dollars in thousands)

<TABLE>
<CAPTION>


                              June 30,                    % of                        December 31,                %  of
                                1997                        Total                       1996                       Total
 Country                      Amount                       Loans                       Amount                      Loans
<S>                          <C>                          <C>                         <C>                         <C>   

United States                   $189,811                     26.38%                      $144,674                     27.01%
Argentina                         28,116                      3.91                        35,241                      6.58
Bolivia                           16,596                      2.31                        15,815                      2.95
Brazil                            46,266                      6.43                        27,255                      5.09
British West Indies               14,148                      1.97                        14,740                      2.75
Dominican Republic                19,984                      2.78                         9,450                      1.76
Ecuador                           58,852                      8.18                        29,799                      5.56
El Salvador                       46,706                      6.49                        28,472                      5.32
Guatemala                         81,302                     11.30                        79,483                     14.84
Honduras                          32,942                      4.58                        24,277                      4.53
Jamaica                           11,313                      1.57                        10,971                      2.05
Panama                            59,595                      8.28                        50,553                      9.44
Peru                              57,403                      7.98                        26,658                      4.98
Venezuela                         19,558                      2.72                        10,245                      1.91
Other (1)                         37,005                      5.12                        27,926                      5.31

     Total                     $ 719,597                    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.

                                                                 8

<PAGE>



At  June  30,  1997  approximately  32.4%  in  cross-border   outstandings  were
outstanding to borrowers in five countries other than the United States: Ecuador
(7.8%), Guatemala (7.3%), Brazil (5.9%), El Salvador (5.8%) and Panama (5.6%).



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


<TABLE>
<CAPTION>
                                                          % of                                                  % of
                             June 30, 1997                Total                     December 31, 1996            Total
                                                         Assets                                                  Assets
<S>                          <C>                         <C>                        <C>                         <C>    
Argentina                       $  44                     4.2%                           $ 58                        7.7%
Bahamas                            13                     1.2                                -                         -
Bolivia                            28                     2.7                              27                        3.6
Brazil                             62                     5.9                              36                        4.7
British West Indies                15                     1.5                              11                        1.5
Colombia (1)                        -                      -                                6                        0.8
Dominican Republic                 26                     2.5                               6                        0.8
Ecuador                            81                     7.8                              35                        4.6
El Salvador                        61                     5.8                              32                        4.2
Guatemala                          77                     7.3                              96                       12.7
Honduras                           32                     3.0                              33                        4.4
Jamaica                            30                     2.8                              22                        2.9
Nicaragua                           6                     0.6                               -                         -
Panama                             58                     5.6                              41                        5.4
Peru                               54                     5.2                              26                        3.4
Venezuela                          18                     1.7                              10                        1.3
Other (1)                          42                     4.0                              17                        2.3

Total                            $647                    61.8%                            $456                     60.3%

</TABLE>

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


                                                                 9

<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>


                                    June 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)        $176,708         $29,451           $369,367         $30,781
Import Letters of Credit (1)         191,443          31,907            312,964         26,080

Total                               $368,151         $61,358           $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  26.2%  from  December  31,  1996 to  June  30,  1997.  Individual
fluctuations reflect relative changes in the flow of trade.

                                              Contingent Liabilities (1)
                                                    (in thousands)
<TABLE>
<CAPTION>

                                  June 30, 1997                     December 31, 1996
<S>                                    <C>                               <C>  
Argentina                              $  3,042                          $7,095
Aruba                                     1,670                               -
Bolivia                                   4,982                           4,401
Brazil                                    4,480                           4,770
Dominican Republic                        4,270                           2,719
Ecuador                                   9,966                           1,858
El Salvador                              11,348                           5,616
Germany                                   1,780                             -
Guatemala                                10,385                          13,981
Haiti                                     3,672                             -
Honduras                                  5,548                           8,315
Jamaica                                   3,062                           1,556
Nicaragua                                   323                           1,414
Panama                                    8,599                           9,803
Paraguay                                  3,417                           5,105
Peru                                      3,605                           5,864
United States                            83,812                          55,991
Other (2)                                 2,220                           3,224

Total                                  $166,181                        $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 nthe above dates.

                                                                 10

<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 June 30, 1997 the
allowance for credit losses was approximately $7.6 million, an increase of 33.3%
from $5.7 million at December 31, 1996 to provide for the loan growth during the
period.


                                                                 11

<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>

                                               Six Months Ended                                  Year Ended
                                                 June 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                                    (1,070)                                            (951)
     Acceptances                                        0                                                0
     Residential                                        0                                                0
     Installment                                       (3)                                              (8)
   Total domestic                                  (1,073)                                            (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                                  (1,142)                                          (1,783)
Recoveries:
Domestic
     Commercial                                        82                                               16
     Acceptances                                        0                                                0
     Residential                                        0                                                0
     Installment                                        0                                                2
Foreign                                                 0                                                0
     Total recoveries                                  82                                               18
Net (charge offs) recoveries                       (1,060)                                          (1,765)
Provision for credit losses                         2,939                                            3,040
Balance at end of the period                    $   7,604                                         $  5,725
Average loans                                   $ 610,481                                         $485,758
Total loans                                     $ 719,597                                         $535,559
Net charge-offs to average loans                     0.17%                                            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.


                                                                 12

<PAGE>




                           Allocation of Allowance for Credit Losses
                                         (in thousands)
<TABLE>
<CAPTION>

                                                    As of                                            As of
                                                  June 30, 1997                                     December 31, 1996
<S>                                                    <C>                                         <C>  
Allocation of the allowance by category                                         
of loans:
Domestic:
     Commercial                                         $2,022                                      $1,900
     Acceptances                                           226                                         226
     Residential                                            54                                          54
     Installment                                             4                                           6
     Overdraft                                              87                                          58
         Total domestic                                  2,393                                       2,244
Foreign:
     Government and official institutions                    0                                           0
     Banks and other financial institutions              2,641                                       2,112
     Commercial and industrial                           1,972                                         920
     Acceptances discounted                                598                                         449
          Total foreign                                  5,211                                       3,481
Total                                                   $7,604                                      $5,725
Percent of loans in each category to total loans:
Domestic:                                                 17.6%                                       20.1%
     Commercial                                            4.4%                                        4.4%
     Acceptances                                           1.5%                                        2.0%
     Residential                                             0%                                        0.1%
     Installment                                             0%                                        0.4%
     Overdraft                                            23.5%                                       27.0%
          Total domestic
Foreign:                                                   0.1%                                        0.1%
     Government and official institutions                 36.9%                                       24.2%
     Banks and other financial institutions               28.2%                                       33.6%
     Commercial and industrial                            11.3%                                       15.1%
     Acceptances discounted                               76.5%                                       73.0%
          Total foreign                                  100.0%                                      100.0%
Total

</TABLE>

            Analysis of Allowance for Credit Losses Allocated to Foreign Loans
                                     (in thousands)


<TABLE>
<CAPTION>


                                               At                                        At
                                          June  30, 1997                       December 31, 1996
<S>                                            <C>                                    <C>    
Balance, beginning of year                      $3,481                                 $3,380
Provision for credit losses                      1,799                                    925
Net charge-offs                                    (69)                                  (824)

Balance, end of period                           $5,211                                $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.


                                                                 13

<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 June 30, 1997. The ratios of total  nonperforming  loans to
total loans and to total assets has decreased as the loans and assets  portfolio
continues to grow and the nonperforming assets remain relatively consistent.

                                                         Nonperforming Loans
                                                           (in thousands)

<TABLE>
<CAPTION>


                                                       June  30,                                December 31,
                                                           1997                                      1996
<S>                                                      <C>                                      <C>    
Domestic:
     Non accrual                                          $3,942                                   $3,087
     Past due over 90 days and accruing                        0                                        0
          Total domestic nonperforming loans               3,942                                    3,087

Foreign
     Non accrual                                            1,655                                    1,654
     Past due over 90 days and accruing                         0                                      112
          Total foreign nonperforming loans                 1,655                                    1,766

     Total nonperforming loans                             $5,597                                   $4,853

     Total nonperforming loans to total loans                0.79%                                   0.91%
     Total nonperforming assets to total assets              0.53%                                   0.64%

</TABLE>

At  December  31,  1996,  and  June  30,  1997 the  Company  had no  nonaccruing
investment securities.


                                                                 14

<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 $68.5  million  and $5.5  million,  respectively,  at June 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 $876.9 million at June 30, 1997 compared to $638.6 million 
at December 31, 1996.  Deposits have grown in order to fund asset growth.

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

                                                              Deposits
                                                           (in thousands)

<TABLE>
<CAPTION>



                                           June 30,                    December 31,
                                               1997                          1996
<S>                                        <C>                         <C>                                         
Non-interest bearing demand deposits       $  60,499                    $  54,875
NOW and money market accounts                 62,819                       60,795
Savings deposits                               4,354                        7,172
Time deposits                                474,644                      434,276
Time deposits from banks
   (International Banking Facilities)        117,373                       88,267

     Total deposits                         $719,689                     $645,385


</TABLE>

The increase in deposits during the six months ended June 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. During the
quarter the Company also increased  deposits from other  financial  institutions
which are usually in denominations of $100,000 or less. 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  $25
million of brokered deposits  participated out by the broker in denominations of
less than  $100,000  through a retail  certificate  of  deposit  program.  These
deposits were used to further diversify our deposit base and as a cost effective
alternative for the short term funding needs of the Company.


                                                                 15

<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                          $  90,676                           $53,733                      $144,409
Over 3 through 6 months                          57,905                            14,604                        72,509
Over 6 through 12 months                        177,223                               100                       177,323
Over 12 months                                   25,901                                 0                        25,901

     Total                                    $ 351,705                           $ 68,437                    $ 420,142


</TABLE>

Stockholders' Equity

The Company's  stockholders' equity at June 30, 1997, was $89.0 million compared
to $43.8  million at December  31,  1996 due  primarily  to the  initial  public
offering completed late in the first quarter of 1997.  Stockholders  equity also
increased by $6.6 million  representing  the net income for the six months ended
June 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 June 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.


                                                                 16

<PAGE>



                                            INTEREST RATE SENSITIVITY REPORT
                                                 (Dollars in thousands)

<TABLE>
<CAPTION>
                                                                                 June 30, 1997
                                          ==========================================================================================
                                            0 to 30      31 to 90   91 to 180      181 to         1 to 5      Over 5
                                                                                    365
                                              Days         Days        Days         Days           Years       Years          Total
                                          ============ ======================== ============ ============================== ========
<S>                                       <C>          <C>        <C>            <C>           <C>           <C>

Earning Assets:

   Loans                                  $149,004     $206,396    $192,451      $49,475        $103,79      $18,481      $719,597

   Federal funds sold                       21,000            0           0            0              0            0        21,000

   Investment securities                    19,477        8,921      28,983        7,961          5,054        2,384        72,780

   Interest earning deposits with other     39,550       35,930      28,616       24,554              0            0       128,650
    banks
                                         --------- ------------------------ ------------    ------------------------    ----------

Total                                      229,031      251,247     250,050       81,990        108,844       20,865       942,027
                                         --------- ------------------------ ------------    ------------------------    ----------
Funding Sources:

   Savings and transaction deposits         19,530       48,539                                                             68,069

   Time deposits of $100 or more            42,006       48,670      57,905      177,223         25,794          107       351,705

   Time deposits under $100                 32,453      101,261     100,316       21,770         11,318           84       267,202

   Other time deposits                      58,734       13,364       1,240          100              0            0        73,438

   Funds overnight                          53,300            0           0            0              0            0        53,300

Total                                     $206,023     $211,834    $159,461     $199,093        $37,112         $191      $813,714
                                                                                                                                   

Interest sensitivity gap                   $23,008      $39,413     $90,589    ($117,103)        $71,732      $20,674     $128,313
                                                                                                                                    

Cumulative gap                             $23,008      $62,421    $153,010      $35,907        $107,639     $128,313
                                                                                                           
Cumulative gap as a percentage of total
   earning assets                            2.44%        6.63%      16.24%        3.81%         11.43%       13.62%


</TABLE>



                                                                 17

<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 June 30, 1997  interest-earning  assets  maturing  within six months
were $730.3 million,  representing 77.5% 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 June 30, 1997 were $198.6 million,  19.0% of total assets,  and
consisted of cash and cash  equivalents,  due from  banks-time and United States
treasury  bills.  At June 30, 1997 the Company had been advised of $87.5 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 31, 1997 which  resulted in  significantly
higher  capital  ratios  being  reported for the second  quarter of 1997.  These
ratios are expected to decline as the assets continue to grow.

                                                       Company Capital Ratios
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>                               June  30, 1997                                     December 31,1996
<S>                             <C>                          <C>                     <C>                            <C>
Tier 1 risk-weighted            
capital:
     Actual                     $86,836                      15.0%                    $41,634                        10.2%
     Minimum                    $22,859                       4.0%                    $16,329                         4.0%
Total risk-weighted
capital:
     Actual                     $94,081                      16.2%                    $46,744                        11.5%
     Minimum                    $45,716                       8.0%                    $32,657                         8.0%
Leverage:
     Actual                     $86,836                       9.2%                    $41,634                         5.8%
     Minimum                    $18,892                       3.0%                    $21,713                         3.0%
</TABLE>

<PAGE>

                                                         Bank Capital Ratios
                                                       (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                 June  30, 1997                             December 31, 1996
<S>                                                      <C>                  <C>                  <C>                     <C> 
Tier 1 risk-weighted capital:                                                                                
     Actual                                               $77,879               13.4%              $41,351                 10.1%
     Minimum to be well capitalized                       $34,247                6.0%              $24,534                  6.0%
     Minimum to be adequately capitalized                 $22,831                4.0%             $16,356                  4.0%
Total risk-weighted capital:
     Actual                                               $85,124               14.7%              $46,470                 11.4%
     Minimum to be well capitalized                       $57,078               10.0%              $40,890                 10.0%
     Minimum to be adequately capitalized                 $45,662                8.0%              $32,712                  8.0%
Leverage:
     Actual                                               $77,879                8.3%              $41,351                  5.7%
     Minimum to be well capitalized                       $42,786                5.0%              $36,261                  5.0%
     Minimum to be adequately capitalized                 $34,229                4.0%              $29,009                  4.0%

</TABLE>

                                                                 18

<PAGE>


Results of Operation-Six 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 $16.9  million  for the six months  ended June 30, 1997 from $13.1
million for the same period in 1996, a 29.0% 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 $767.8 million for the six months
ended June 30,  1997 from $541.6  million  for the same period in 1996,  a 41.8%
increase.  Average loans and acceptances  discounted increased to $610.5 million
for the six months  ended June 30, 1997 from $418.5  million for the same period
in 1996, a 41.9% increase,  while average  interest  earning deposits with other
banks  increased  to $109.5  million for the six months ended June 30, 1997 from
$51.5  million  for the same period in 1996,  a 112.6%  increase.  Net  interest
margin  decreased to 4.37% for the six months ended June 30, 1997 from 4.77% for
the same  period  in 1996,  a 40  basis  point  decrease,  although  the  margin
increased  slightly when compared to the previous  quarter margin of 4.23%.  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 and (ii) loans to larger corporate and
bank  customers,   which  command  more  competitive  pricing,  increased  as  a
percentage of total loans.

Interest  income  increased  to $35.2  million for the six months ended June 30,
1997  from  $26.3  million  for the  same  period  in  1996,  a 33.8%  increase,
reflecting an increase in loans in the Region, 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 $18.3 million for the six months
ended June 30,  1997 from $13.2  million  for the same  period in 1996,  a 38.6%
increase,  reflecting  the  additional  deposits to fund asset  growth.  Average
interest-bearing  deposits  increased to $659.2 million for the six months ended
June 30 1997 from $475.6 on for the same period in 1996, a 39.4%  increase.  The
growth in deposits  was  primarily a result of the  Company  seeking  additional
deposits to fund asset  growth.  The  Company's  time  deposits  from banks also
increased  to $117.4  million for the six months  ended June 30, 1997 from $91.0
million for the same period in 1996.

Provision for Credit Losses

The Company's provision for credit-losses  increased to $2.9 million for the six
months  ended June 30, 1997 from $950  thousand  for the same period in 1996,  a
205% increase.  Net loan chargeoffs during the first six months 1997 amounted to
$1.1  million  compared to $1.8  million for the year 1996.  The  allowance  for
credit  losses was  increased to $7.6 million at June 30, 1997 from $5.7 million
for the  end of the  fiscal  year  1996,  a 33.3%  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 remained  substantially  the same
at 1.06% at June 30, 1997 increasing  slightly from approximately  1.04% at June
30, 1996.

Non-Interest Income

Non-interest  income increased to approximately  $7.1 million for the six months
ended  June 30,  1997 from $4.9  million  for the same  period in 1996,  a 44.9%
increase.  Trade  finance  fees and  commissions  increased  by $1.9 million due
largely to higher  letters of credit volume.  In addition,  the Company had more
lending  facility  fees charged  during the first half year of 1997  compared to
1996.  Capital  market fees  increased  by $564  thousand as a result of various
capital market  transactions  which have been completed as the  globalization of
investments  in the  region  has  created  more  capital  market  opportunities.
Customer  service fees decreased by $50 thousand as a result of lower overdrafts
experienced  in the  period.  The  other  income  category  as of June 30,  1997
includes $109  thousand  gain on sale of the minority  investment in a financial
institution in El Salvador.


                                                                 19

<PAGE>




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 Six Months Ended June 30,
                                                                                    1996 to 1997
                                                         1996                        % Change                   1997
<S>                                                     <C>                              <C>                  <C>   
Trade finance fees and commissions                      $3,997                           48%                  $5,906
Capital market fees, net                                     1                           563                     564
Customer service fees                                      841                           (50)                    421
Other                                                      103                           134                     249

Total non-interest income                               $4,942                            44%                 $7,140

</TABLE>

Operating Expenses

Operating  expenses increased to $10.9 million for the six months ended June 30,
1997 from $9.0 million for the same period in 1996, a 21.1%  increase.  Employee
compensation  and  benefits  increased  to $5.5 million for the six months ended
June 30, 1997 from $4.6 million for the same period in 1996,  a 19.6%  increase.
This was  primarily due to an increase in the number of employees to 240 at June
30, 1997 from 206 for the same  period in 1996,  the  majority of the  employees
were added to support  the two  branches  opened  during the first six months of
1997 as well as salary increases for existing personnel. Occupancy expenses have
remained relatively consistent at $1.5 million. Other expenses increased to $3.3
million for the six months  ended June 30,  1997 from $2.3  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 23.2% during the first half of 1997. Insurance and examination fees
(FDIC and OCC) increased to $175 thousand for the six months ended June 30, 1997
from $76 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 44.8%.

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 Six Months Ended June 30,
                                                                                     1996 to 1997
                                                            1996                       % Change                   1997
<S>                                                        <C>                            <C>                    <C> 
Employee compensation and benefits                         $4,578                          21%                   $5,529
Occupancy and equipment                                     1,468                           1                     1,478
Other operating expenses                                    2,325                          41                     3,272
Directors' fees                                               552                         (23)                      424
Insurance and examination fees (FDIC and
      OCC)                                                     76                         130                       175

Total operating expenses                                   $8,999                          21%                 $ 10,878

</TABLE>

<PAGE>



                                             YIELDS EARNED AND RATE PAID
 
<TABLE>
<CAPTION>
                                                           For six months endedFor six months ended
                                                                    June 30, 1996June 30, 1997
                                             ------------------------------------------------------------------------
                                             Average   Revenue/         Yield/        Average   Revenue/        Yield/             
                                             Balance   Expense          Rate         Balance   Expense         Rate
                                                                                              
                                                                          (dollars in thousands)
      Total Earning Assets
<S>                                             <C>       <C>              <C>         <C>       <C>            <C>
      Loans:
          Commerical loans                      $326,343  $16,297 (1)      9.88%       $489,617  $23,002(1)      9.34%
                                                                                                                    
          Mortgage loans                          11,310      480          8.39%         10,758      454         8.39%
                                                                                                                    
           Installment loans                         367       17          9.16%            398       19         9.49%
                                                                                                                    
          Acceptances Discounted                  92,160    4,630          9.94%        104,190    5,100         9.74%
                                                                                                                    
          Overdraft                                6,547      585         17.67%          5,518      611        22.02%
                                                                                                                    
                                             --------------------      ---------    --------------------      -------
      Total Loans (1)                            436,727   22,009          9.97%        610,481   29,186         9.51%
                                                                                                                    

      Investments                                 27,525    1,071          7.70%         31,825      931         5.82%
                                                                                                                    
      Federal funds sold                          25,899      702          5.36%         16,022      434         5.39%
                                                                                                                    
      Time Deposit with Banks                     51,487    2,476          9.51%        109,455    4,621         8.40%
                                             --------------------      ---------    --------------------      -------
           Total Investments and Time Deposit
              with Banks                         104,911    4,249          8.01%        157,302    5,986         7.57%
                                                                                                                    
      Total Interest Earning assets              541,638  $26,258          9.59%        767,783  $35,172         9.11%
                                                                                                                    
                                                        ---------                              ---------
      Total non interest earning assets           88,096                                 92,100
                                             -----------                            -----------
      Total Assets                              $629,734                               $859,883

      Interest Bearing Liabilities
      Deposits:
          Super NOW, NOW                         $16,366     $267          3.23%        $15,735     $161         2.04%
                                                                                                                    
          Money Market                            39,633      984          4.91%         43,923    1,030         4.66%
                                                                                                                    
          Presidential Market                      3,313       65          3.88%          3,161       45         2.83%
                                                                                                                    
          Super Savings, Savings                   9,586      154          3.18%          4,354       68         3.11%
                                                                                                                    
          Certificate of Deposits (including     315,631    9,303          5.83%        474,644   13,828         5.79%
      IRA)                                                                                                          
          Time Deposits from Banks (IBF)          90,979    2,410          5.24%        117,373    3,059         5.18%
                                                                                                                    
           Collateral Accounts                        77        1          2.57%              0        0         0.00%
                                                                                                                    
                                             --------------------      ---------    --------------------      -------
      Total Deposits                             475,585   13,184          5.48%        659,190   18,191         5.49%
                                                                                                                    
      Federal Funds Purchased                         27        1          7.33%          3,903      109         5.55%
                                                                                                                    
                                             --------------------      ---------    --------------------      -------
      Total interest bearing liabilities         475,612   13,185          5.48%        663,093   18,300         5.49%
                                                                                                                    
                                             --------------------      ---------    --------------------      -------
      Non interest bearing liabilities
          Demand Deposits                         45,647                                 60,499
          Other Liabilities                       72,791                                 67,710
      Total non interest bearing liabilities     118,438                                128,209
      Stockholders equity                         35,684                                 68,581
                                             -----------                            -----------
      Total liabilities and stockholder's       $629,734                               $859,883
      equity
                                             ===========                            ===========

      Net Interest income / net interest                  $13,073          4.11%                 $16,872         3.62%
      spread                                                                                                        
                                                        ---------      ---------               ---------      -------
      Margin
      Interest income / interest earning                                   9.59%                                 9.11%
      assets                                                                                                        
      Interest expense / interest earning                                  4.82%                                 4.74%
      assets                                                                                                        
                                                                       ---------                              -------
          Net interest margin                                              4.77%                                 4.37%

</TABLE>
                                                     
1) Interest income for calculating yields includes $158 and $142 thousand
   of loan fees for the six months ended June 30, 1996 and June 30, 1997,
   respectively.


<PAGE>



                                                
<TABLE>
<CAPTION>                                       Six months ended June 30, 1996             Six months ended June 30, 1997

                                                                                   % of                                      % of
                                                                                  Total                                      Total
                                                Average             Average       Average   Average            Average      Average
                                                Balance    Interest Yield/Rate    Assets    Balance   Income   Yield/Rate    Assets
                                                                                                             

Total Earning Assets
<S>                                              <C>          <C>      <C>        <C>      <C>        <C>         <C>       <C>
Loans:
     Domestic                                    $152,676     $8,300    10.8%      24.2%   $160,517   $7,703      9.5%      18.7%
    Foreign                                       284,051     13,709     9.5%      45.1%    449,964   21,483      9.5%      52.3%
                                               ---------- ------------------- ----------  ------------------ --------- ----------
Total Loans                                       436,727     22,009    10.0%      69.4%    610,481   29,186      9.5%      71.0%

Investments and time deposits with banks
   Domestic                                        47,115      1,278     5.4%       7.5%     41,329    2,310     11.1%       4.8%
   Foreign                                         57,796      2,971    10.2%       9.2%    115,973    3,676      6.3%      13.5%
                                               ---------- ------------------- ----------  ------------------ --------- ----------
     Total Investments and Time Deposit  with     104,912      4,249     8.0%      16.7%    157,302    5,986      7.6%      18.3%
Banks

Total Interest Earning assets                     541,639    $26,258     9.6%      86.0%    767,783  $35,172      9.1%      89.3%
                                                          ==========                               ========= =========

Total non interest earning assets                  88,096                          14.0%     92,100                         10.7%
                                                                              ----------                               ----------

Total Assets                                     $629,735                         100.0%   $859,883                        100.0%
                                               ==========                     ==========  =========                    ==========


</TABLE>


(1) Interest  income for  calculating  yields includes $158 and $142 thousand of
loan  fees  for  the  six  months  ended  June  30,  1996  and  June  30,  1997,
respectively.





<PAGE>




Results of Operation-Quarter

Net Interest Income

Net interest  income  increased  to $9.6 million for the quarter  ended June 30,
1997 from  $6.6  million  for the same  period in 1996,  a 45.5%  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 $843.0
million  for the quarter  ended June 30,  1997 from $551.5  million for the same
period in 1996,  a 52.9%  increase.  Average  loans and  acceptances  discounted
increased  to $658.7  million  for the  quarter  ended June 30, 1997 from $440.8
million for the same period in 1996, a 49.4%  increase,  while average  interest
earning  deposits with other banks  increased to $127.1  million for the quarter
ended June 30, 1997 from $61.7  million  for the same  period in 1996,  a 106.0%
increase.  Net interest margin decreased to 4.49% for the quarter ended June 30,
1997 from  4.72% for the same  period in 1996,  a decrease  of 23 basis  points,
although the margin  increased  slightly when  compared to the previous  quarter
margin of 4.23%.

Interest  income  increased to $19.6 million for the quarter ended June 30, 1997
from $13.2  million  for the same  period in 1996,  a 48.6%  increase.  Interest
expense increased to $10.0 million for the quarter ended June 30, 1997 from $6.6
million for the same period in 1996, a 51.8% increase, reflecting the additional
deposits to fund asset growth.  Average  interest-bearing  deposits increased to
$712.4  million for the  quarter  ended June 30 1997 from $483.6 on for the same
period in 1996, a 47.3% increase.  The growth in deposits was primarily a result
of the Company  seeking new  deposits  of such types to fund asset  growth.  The
Company's  time  deposits  from banks also  increased to $123.6  million for the
quarter ended June 30, 1997 from $94.8 million for the same period in 1996.

Provision for Credit Losses

 The  Company's  provision for  credit-losses  increased to $2.2 million for the
quarter  ended June 30, 1997 from $450  thousand  for the same period in 1996, a
387.0% increase.  Net loan chargeoffs during the second quarter in 1997 amounted
to $1.1 million  compared to $1.8 million for the year 1996.  The  allowance for
credit  losses was  increased to $7.6 million at June 30, 1997 from $5.7 million
at the end of the fiscal year 1996, a 33.3% 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 increased  slightly to  approximately
1.06% at June 30, 1997 from approximately 1.04% at June 30, 1996.

Non-Interest Income

Non-interest  income  increased  to  approximately  $4.0 million for the quarter
ended  June 30,  1997 from $2.4  million  for the same  period in 1996,  a 66.7%
increase.  Trade  finance  fees and  commissions  increased  by $1.1 million due
largely to higher  letters of credit volume.  In addition,  the Company had more
lending  facility fees charged during the second quarter of 1997 compared to the
same period in 1996 as a result of the loan growth experienced during the second
quarter of 1997.  Capital  market fees increased by $478 thousand as a result of
various  capital  market  transactions.  Customer  service fees decreased by $33
thousand as a result of lower  overdrafts  experienced in the period.  The other
income  category as of June 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.

                                                     Non-Interest Income
                                                   (Dollars in thousands)
                                                 For the Quarter Ended June 30,

<TABLE>
<CAPTION>
                                                                                   1996 to 1997
                                                         1996                        % Change                 1997
<S>                                                     <C>                              <C>                <C> 
Trade finance fees and commissions                      $2,096                           50%                $3,148
Capital market fees, net                                     0                           478                   478
Customer service fees                                      198                           (17)                  165
Other                                                       69                           161                   180

Total non-interest income                               $2,363                            68%               $3,971

</TABLE>


Operating Expenses

Operating expenses increased to $5.6 million for the quarter ended June 30, 1997
from $4.5  million  for the same  period  in 1996,  a 24.5%  increase.  Employee
compensation  and benefits  increased to $2.8 million for the quarter ended June
30, 1997 from $2.3 million for the same period in 1996, a 21.7%  increase.  This
was  primarily  due to an increase in the number of employees to 240 at June 30,
1997 from 206 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 slightly
to $796 thousand in the second quarter of 1997, a 6.7% increase when compared to
the second  quarter in 1996.  Other  expenses  increased to $1.9 million for the
quarter  ended  June 30,  1997 from $1.4  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.



<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 June 30,
                                                                                   1996 to 1997
                                                          1996                       % Change                     1997
<S>                                                     <C>                                <C>                <C> 
Employee compensation and benefits                       $2,304                            23%                 $  2,826
Occupancy and equipment                                     747                             7                       796
Other operating expenses                                  1,086                            55                     1,678
Directors' fees                                             286                           (32)                      194
Insurance and examination fees (FDIC and
      OCC)                                                   40                            53                        61

Total operating expenses                                 $4,463                            24%                 $  5,555


</TABLE>



<PAGE>

<TABLE>
<CAPTION>
                                                For the quarter ended                For the quarter ended
                                                    June 30, 1996                        June 30, 1997
                                          ----------------------------------    -------------------------------
                                           Average    Revenue/      Yield/        Average   Revenue/      Yield/
                                           Balance    Expense        Rate         Balance   Expense       Rate
                                                                                               
                                                                     (dollars in thousands)
Total Earning Assets
<S>                                         <C>         <C>           <C>          <C>       <C>           <C>
Loans:
    Commerical loans                        $331,622     $8,142(1)     9.71%       $534,776  $12,702(1)    9.40%
                                                                                                              
    Mortgage loans                            11,187        238        8.42%         10,793      228       8.36%
                                                                                                              
     Installment loans                           387          9        9.20%            360        9       9.89%
                                                                                                              
    Acceptances Discounted                    90,426      2,245        9.82%        105,831    2,624       9.81%
                                                                                                              
    Overdraft                                  7,213        325       17.84%          6,972      432      24.51%
                                                                                                              
                                          ---------- ----------    ---------    --------------------    -------
Total Loans (1)                              440,835     10,959        9.83%        658,732   15,995       9.61%
                                                                                                              
Investments                                   25,132        499        7.85%         42,255      637       5.96%
                                                                                                              
Federal funds sold                            23,788        320        5.32%         14,877      206       5.48%
                                                                                                              
Time Deposit with Banks                       61,737      1,398        8.96%        127,121    2,738       8.52%
                                                                                                              
                                          ---------- ----------    ---------    --------------------    -------
     Total Investments and Time Deposit
        with Banks                           110,657      2,217        7.93%        184,253    3,581       7.69%
                                                                                                              
Total Interest Earning assets                551,492    $13,176        9.45%        842,985  $19,576       9.19%
                                                                                                              
                                                     ----------    ---------               ---------    -------
Total non interest earning assets             78,428                                101,056
                                          ----------                            -----------
Total Assets                                $629,920                               $944,041
                                          ----------                            -----------
Interest Bearing Liabilities
Deposits:
    Super NOW, NOW                           $16,180       $138        3.37%        $15,940      $74       1.84%
                                                                                                              
    Money Market                              42,229        525        4.92%         43,556      513       4.66%
                                                                                                              
    Presidential Market                        3,193         31        3.84%          2,793       20       2.83%
                                                                                                              
    Super Savings, Savings                     9,297         75        3.19%          4,144       33       3.15%
                                                                                                              
    Certificate of Deposits (including IRA)  317,857      4,575        5.69%        522,328    7,668       5.81%
                                                                                                              
    Time Deposits with Banks (IBF)            94,833      1,252        5.22%        123,610    1,646       5.27%
                                                                                                             
     Collateral Accounts                           0          0        0.00%              0        0       0.00%
                                                                                                              
                                          ---------- ----------    ---------    --------------------    -------
Total Deposits                               483,589      6,596        5.40%        712,371    9,954       5.53%
                                                                                                              
Federal Funds Purchased                           55          1        7.19%          4,125       59       5.66%
                                                                                                              
Other Borrowings                                   0          0        0.00%              0        0       0.00%
                                                                                                              
                                          ---------- ----------    ---------    --------------------    -------
Total interest bearing liabilities           483,644      6,597        5.40%        716,496   10,013       5.53%
                                                                                                              
                                          ---------- ----------    ---------    --------------------    -------
Non interest bearing liabilities
    Demand Deposits                           43,246                                 63,561
    Other Liabilities                         67,346                                 78,780
                                          ----------                            -----------
Total non interest bearing liabilities       110,592                                142,341
Stockholders equity                           35,684                                 85,204
                                          ----------                            -----------
Total liabilities and stockholder's         $629,920                               $944,041
equity
                                          ==========                            ===========
Net Interest income / net interest                       $6,579        4.06%                  $9,563       3.66%
spread                                                                                                        
                                                      ----------    ---------               ---------    -------
Margin
Interest income / interest earning assets                              9.45%                               9.19%
                                                                                                              
Interest expense / interest earning                                    4.73%                               4.70%
assets                                                                                                        
                                                                   ---------                            -------
    Net interest margin                                                4.72%                               4.49%
                                                                                                              
                                                                   ---------                            -------
</TABLE>

(1) Interest income for calculating yields includes $60 and $85 thousand of loan
fees for the quarter ended June 30, 1996 and June 30, 1997, respectively.




<PAGE>




                                    HAMILTON BANCORP INC. AND SUBSIDIARY

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

<TABLE>
<CAPTION>
                                                Three Months Ended                               Six Months Ended
                                                     June 30,                                        June 30,
                                      --------------------------------------          ---------------------------------------
                                           1997                    1996                    1997                    1996
                                      ---------------         --------------          ---------------        ----------------
<S>                                         <C>                   <C>                      <C>                      <C>    
Primary
Weighted average number of
  common shares outstanding                 9,796,301              5,205,030                7,767,877               5,205,030

Common equivalent shares
  outstanding - options                       337,428                225,000                  383,148                 225,000
                                      ---------------         --------------          ---------------        ----------------

Total common and common
  equivalent shares                        10,133,729              5,430,030                8,151,024               5,430,030
outstanding

Net income                                     $3,741                 $2,463                   $6,563                  $4,979

Primary earings per share                       $0.37                  $0.45                    $0.81                   $0.92

Fully diluted:

Weighted average number of
  common shares outstanding                 9,796,301              5,205,030                7,767,877               5,205,030

Common equivalent shares
  outstanding - options                       383,148                225,000                  383,148                 225,000
                                      ---------------         --------------          ---------------        ----------------

Total common and common
  equivalent shares                        10,179,449              5,430,030                8,151,024               5,430,030
outstanding

Net income                                     $3,741                 $2,463                   $6,563                  $4,979

Fully diluted earnings per                      $0.37                  $0.45                    $0.81                   $0.92
share

</TABLE>