UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 8568
John Hancock Bank and Thrift Opportunity Fund
(Exact name of registrant as specified in charter)
601 Congress Street, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Alfred P. Ouellette, Senior Counsel & Assistant Secretary
601 Congress Street
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4324
| Date of fiscal year end: | October 31 | |
| Date of reporting period: | July 31, 2007 | |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock
Bank and Thrift Opportunity Fund
Securities owned by the Fund on
July 31, 2007 (unaudited)
| Par value | ||
| Issuer, description | (000) | Value |
|
| ||
| Capital preferred securites 0.39% | $2,911,500 | |
| (Cost $2,970,000) | ||
| Financial Services 0.39% | 2,911,500 | |
|
| ||
| Preferred Term Securities XXV, Ltd., | ||
| Zero Coupon, 6-22-37 (Cayman | ||
| Islands) (F) | $3,000 | 2,911,500 |
| Issuer | Shares | Value |
|
| ||
| Common stocks 98.40% | $738,640,140 | |
| (Cost $457,271,959) | ||
| Asset Management & Custody Banks 4.79% | 35,944,054 | |
|
| ||
| Bank of New York Mellon Corp. (NY) (W) | 570,284 | 24,265,584 |
| Northern Trust Corp. (IL) | 70,000 | 4,372,200 |
| State Street Corp. (MA) | 109,000 | 7,306,270 |
| Diversified Banks 11.41% | 85,683,646 | |
|
| ||
| Comerica, Inc. (MI) | 314,400 | 16,556,304 |
| U.S. Bancorp. (MN) | 700,541 | 20,981,203 |
| Wachovia Corp. (NC) | 503,571 | 23,773,587 |
| Wells Fargo & Co. (CA) | 721,722 | 24,372,552 |
| Other Diversified Financial Services 7.35% | 55,191,391 | |
|
| ||
| Bank of America Corp. (NC) | 524,260 | 24,860,409 |
| Citigroup, Inc. (NY) | 325,225 | 15,145,728 |
| JPMorgan Chase & Co. (NY) | 345,041 | 15,185,254 |
| Regional Banks 70.31% | 527,746,201 | |
|
| ||
| Access National Corp. (VA) | 250,000 | 1,752,500 |
| Alabama National Bancorp. (AL) | 181,000 | 9,659,970 |
| AmericanWest Bancorp. (WA) | 364,621 | 5,560,470 |
| Ameris Bancorp. (GA) | 98,337 | 1,755,315 |
| Bank of Hawaii Corp. (HI) | 59,300 | 2,847,586 |
| Bank of the Ozarks, Inc. (AR) | 110,450 | 3,120,213 |
| BB&T Corp. (NC) | 344,846 | 12,904,137 |
| Beverly National Corp. (MA) | 97,500 | 1,903,200 |
| BOK Financial Corp. (OK) | 95,208 | 4,762,304 |
| Boston Private Financial Holdings, Inc. (MA) | 74,000 | 1,886,260 |
| Bridge Capital Holdings (CA) (I) | 107,600 | 2,485,560 |
| Camden National Corp. (ME) | 140,000 | 5,012,000 |
| Capital City Bank Group, Inc. (FL) (L) | 74,543 | 2,233,308 |
| Cardinal Financial Corp. (VA) | 20,000 | 187,200 |
| Cascade Bancorp. (OR) | 242,090 | 5,279,983 |
Page 1
John Hancock
Bank and Thrift Opportunity Fund
Securities owned by the Fund on
July 31, 2007 (unaudited)
| Chittenden Corp. (VT) | 304,981 | 10,201,614 |
| City Holding Co. (WV) | 41,600 | 1,366,560 |
| City National Corp. (CA) | 238,377 | 16,874,708 |
| CoBiz, Inc. (CO) | 340,650 | 5,266,449 |
| Colonial BancGroup, Inc. (The) (AL) | 713,307 | 15,557,226 |
| Columbia Bancorp. (OR) | 132,000 | 2,477,640 |
| Cullen/Frost Bankers, Inc. (TX) | 453,770 | 22,538,756 |
| Dearborn Bancorp., Inc. (MI) (I) | 105,622 | 1,378,367 |
| DNB Financial Corp. (PA) | 76,205 | 1,505,049 |
| East West Bancorp., Inc. (CA) | 420,000 | 15,397,200 |
| Eastern Virginia Bankshares, Inc. (VA) | 100,000 | 2,029,000 |
| ECB Bancorp., Inc. (NC) | 65,000 | 1,768,000 |
| Eurobancshares, Inc. (Puerto Rico) (F)(I) | 42,830 | 360,200 |
| F.N.B. Corp. (PA) (L) | 245,049 | 3,678,185 |
| Financial Institutions, Inc. (NY) | 73,000 | 1,336,630 |
| First American Financial Holdings, Inc. (TN) | 300,000 | 2,523,000 |
| First Charter Corp. (NC) | 338,300 | 6,234,869 |
| First Horizon National Corp. (TN) | 152,150 | 4,826,198 |
| First Midwest Bancorp., Inc. (IL) | 103,800 | 3,413,982 |
| First National Lincoln Corp. (ME) | 146,499 | 2,343,984 |
| First Regional Bancorp. (CA) (I) | 419,000 | 9,012,690 |
| First State Bancorp. (NM) | 227,850 | 3,932,691 |
| Fulton Financial Corp. (PA) | 359,890 | 4,757,746 |
| Glacier Bancorp., Inc. (MT) | 577,932 | 11,009,605 |
| Greene Bancshares, Inc. (TN) | 25,000 | 826,500 |
| Hancock Holding Co. (MS) | 209,650 | 7,415,321 |
| Harleysville National Corp. (PA) | 151,897 | 2,238,962 |
| Huntington Bancshares, Inc. (OH) | 520,215 | 9,988,128 |
| IBERIABANK Corp. (LA) | 60,000 | 2,528,400 |
| Independent Bank Corp. (MI) | 344,935 | 4,180,612 |
| International Bancshares Corp. (TX) | 220,370 | 4,854,751 |
| KeyCorp (OH) | 287,000 | 9,956,030 |
| Lakeland Financial Corp. (IN) | 144,802 | 3,285,557 |
| M&T Bank Corp. (NY) | 176,157 | 18,723,728 |
| Marshall & Ilsley Corp. (WI) | 411,895 | 16,974,193 |
| MB Financial, Inc. (IL) | 156,100 | 4,976,468 |
| Northrim Bancorp., Inc. (AK) | 73,555 | 2,199,295 |
| Pacific Capital Bancorp. (CA) | 280,954 | 5,871,939 |
| Pinnacle Financial Partners, Inc. (TN) (I) | 55,000 | 1,326,050 |
| PNC Financial Services Group, Inc. (PA) | 357,246 | 23,810,446 |
| Prosperity Bancshares, Inc. (TX) | 75,895 | 2,149,346 |
| Provident Bankshares Corp. (MD) | 198,558 | 5,698,615 |
| Regions Financial Corp. (AL) | 253,843 | 7,633,059 |
| S&T Bancorp., Inc. (PA) | 154,700 | 4,808,076 |
| Sandy Spring Bancorp., Inc. (MD) | 165,424 | 4,456,523 |
| SCBT Financial Corp. (SC) | 90,000 | 2,622,600 |
| Security Bank Corp. (GA) (L) | 317,500 | 4,489,450 |
| Signature Bank (NY) (I) | 40,000 | 1,235,600 |
| Smithtown Bancorp., Inc. (NY) (L) | 49,500 | 1,150,875 |
| South Financial Group, Inc. (The) (SC) | 70,150 | 1,512,434 |
Page 2
John Hancock
Bank and Thrift Opportunity Fund
Securities owned by the Fund on
July 31, 2007 (unaudited)
| Southcoast Financial Corp. (SC) (I) | 74,789 | 1,420,991 |
| Sterling Bancshares, Inc. (TX) | 598,000 | 6,225,180 |
| SunTrust Banks, Inc. (GA) | 255,976 | 20,042,921 |
| SVB Financial Group (CA) (I) | 244,700 | 12,890,796 |
| Synovus Financial Corp. (GA) | 570,450 | 15,949,782 |
| Taylor Capital Group, Inc. (IL) | 241,950 | 6,566,523 |
| TCF Financial Corp. (MN) | 408,166 | 10,036,802 |
| TriCo Bancshares (CA) | 53,000 | 1,071,660 |
| UCBH Holdings, Inc. (CA) | 585,033 | 9,617,943 |
| Umpqua Holdings Corp. (OR) | 182,901 | 3,478,777 |
| UnionBanCal Corp. (CA) | 124,800 | 6,896,448 |
| Union Bankshares Corp. (VA) | 97,500 | 1,892,475 |
| United Community Banks, Inc. (GA) | 42,500 | 996,625 |
| Univest Corp. (PA) (L) | 205,218 | 3,952,499 |
| Valley National Bancorp. (NJ) (L) | 105,267 | 2,228,502 |
| Vineyard National Bancorp Co. (CA) | 194,168 | 4,017,336 |
| Virginia Commerce Bancorp., Inc. (VA) (I)(L) | 78,465 | 1,144,804 |
| Virginia Financial Group, Inc. (VA) | 123,850 | 2,579,795 |
| Webster Financial Corp. (CT) | 70,110 | 3,046,981 |
| West Coast Bancorp. (OR) | 67,583 | 1,769,323 |
| Westamerica Bancorp. (CA) | 40,000 | 1,637,200 |
| Western Alliance Bancorp. (NV) (I)(L) | 109,500 | 2,880,945 |
| Whitney Holding Corp. (LA) | 264,400 | 6,607,356 |
| Wilmington Trust Corp. (DE) | 267,950 | 10,433,973 |
| Zions Bancorp. (UT) | 326,053 | 24,307,251 |
| Thrifts & Mortgage Finance 4.54% | 34,074,848 | |
|
| ||
| Astoria Financial Corp. (NY) | 75,865 | 1,786,621 |
| Benjamin Franklin Bancorp., Inc. (MA) | 15,000 | 201,750 |
| Berkshire Hills Bancorp., Inc. (MA) | 330,410 | 8,669,958 |
| Countrywide Financial Corp. (CA) | 87,848 | 2,474,678 |
| Hingham Institute for Savings (MA) | 80,000 | 2,511,200 |
| Hudson City Bancorp., Inc. (NJ) | 386,310 | 4,720,708 |
| LSB Corp. (MA) | 65,000 | 1,054,950 |
| People's United Financial, Inc. (CT) | 167,980 | 2,707,838 |
| Sovereign Bancorp., Inc. (PA) | 103,400 | 1,979,076 |
| Washington Mutual, Inc. (WA) | 212,312 | 7,968,069 |
Page 3
John Hancock
Bank and Thrift Opportunity Fund
Securities owned by the Fund on
July 31, 2007 (unaudited)
| Interest | Maturity | Par value | ||
| Issuer, description | rate | Date | ($000) | Value |
|
| ||||
| Short-term investments 2.95% | $22,122,175 | |||
| (Cost $22,122,175) | ||||
| Certificates of Deposit 0.01% | 74,156 | |||
|
| ||||
| Country Bank for Savings | 5.640% | 08-30-08 | 2 | 1,610 |
| First Bank Richmond | 2.960 | 12-05-07 | 16 | 15,628 |
| First Bank System, Inc. | 4.889 | 05-02-08 | 4 | 4,260 |
| First Federal Savings Bank of Louisiana | 2.480 | 12-07-07 | 3 | 2,711 |
| Framingham Cooperative Bank | 3.750 | 09-10-07 | 3 | 3,163 |
| Home Bank | 2.720 | 12-04-07 | 15 | 15,047 |
| Hudson River Bank & Trust | 1.980 | 11-21-07 | 7 | 7,378 |
| Hudson Savings Bank | 4.800 | 04-20-09 | 2 | 1,785 |
| Machias Savings Bank | 3.540 | 05-24-09 | 2 | 1,672 |
| Middlesex Savings Bank | 5.120 | 08-17-08 | 2 | 1,652 |
| Midstate Federal Savings and Loan Assn. | 4.250 | 05-27-08 | 2 | 1,737 |
| Milford Bank | 3.400 | 05-27-09 | 2 | 1,666 |
| Milford Federal Savings and Loan Assn. | 3.650 | 02-28-08 | 2 | 1,683 |
| Mount McKinley Savings Bank | 4.750 | 12-03-07 | 1 | 1,495 |
| Mount Washington Bank | 3.300 | 10-31-07 | 2 | 1,564 |
| Natick Federal Savings Bank | 4.590 | 08-31-07 | 2 | 1,611 |
| Newburyport Bank | 3.400 | 10-20-08 | 2 | 1,777 |
| OBA Federal Savings Bank | 4.600 | 06-15-09 | 1 | 1,145 |
| Plymouth Savings Bank | 3.590 | 04-21-09 | 2 | 1,730 |
| Randolph Savings Bank | 4.000 | 09-13-07 | 2 | 1,585 |
| Salem Five Bank | 3.150 | 12-17-07 | 2 | 1,565 |
| Sunshine Federal Savings and Loan Assn. | 5.000 | 05-10-09 | 2 | 1,692 |
| Joint Repurchase Agreement 0.96% | 7,167,000 | |||
|
| ||||
| Joint Repurchase Agreement with Bank of America | ||||
| Corp. dated 07-31-2007 at 5.120% to be repurchased | ||||
| at $7,168,019 on 08-01-2007, collateralized | ||||
| by $6,029,174 US Treasury Bond, 7.500% due | ||||
| 11-15-2016 (valued at $7,310,340, including | ||||
| interest) | 7,167 | 7,167,000 | ||
| Shares | ||||
| Cash Equivalents 1.98% | 14,881,019 | |||
|
| ||||
| John Hancock Cash Investment Trust (T)(W) | 14,881,019 | 14,881,019 | ||
Page 4
John Hancock
Bank and Thrift Opportunity Fund
Securities owned by the Fund on
July 31, 2007 (unaudited)
| Total investments (Cost $482,364,134) 101.74% | $763,673,815 |
| Other assets and liabilities, net (1.74%) | ($13,046,296) |
| Total net assets 100.00% | $750,627,519 |
The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.
Page 5
John Hancock
Bank and Thrift Opportunity Fund
Notes to Schedule of Investments
July 31, 2007 (unaudited)
(F) Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer; however, security is U.S. dollar-denominated.
(I) Non-income-producing security.
(L) All or a portion of this security is on loan as of July 31, 2007.
(T) Represents investment of securities lending collateral.
(W) Issuer is an affiliate of John Hancock Advisers, LLC.
The cost of investments owned on July 31, 2007, including short-term investments, was $482,364,134. Gross unrealized appreciation and depreciation of investments aggregated $301,998,265 and $20,688,584, respectively, resulting in net unrealized appreciation of $281,309,681.
Notes to Schedule of Investments
Security valuation
The net asset value of the common shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (MFC), are valued at their net asset value each business day. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Securities for which there are no such quotations, principally debt securities, are valued based on the valuation provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.
Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.
Joint repurchase agreement
Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Fund, along with other registered investment companies having a management contract with John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation, may participate in a joint repurchase agreement transaction. Aggregate cash balances are invested in one or more large repurchase agreements, whose underlying securities are obligations of the U.S. government and/or its agencies. The Fund’s custodian bank receives delivery of the underlying securities for the joint account on the Fund’s behalf. The Adviser is responsible for ensuring that the agreement is fully collateralized at all times.
Securities lending
The Fund may lend securities in amounts up to 331Ú3% of the Fund’s total assets. Such loans are callable at any time and are at all times fully secured by cash, cash equivalents or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities and marked-to-market on a daily basis. The Fund may bear the risk of delay in recovery of, or even of rights in, the securities loaned should the borrower of the securities fail financially. The Fund receives compensation for lending their securities either in the form of fees and/or by retaining a portion of interest on the investment of any cash received as collateral. The Fund invests the cash collateral received in connection with securities lending transactions in the JHCIT, a Delaware common law trust and an affiliated fund. JHCIT is exempt from registration under Section 3(c)(7) of the 1940 Act (pursuant to exemptive order issued by the SEC) and is managed by the Adviser, for which the Adviser receives an investment advisory fee of 0.04% of the average daily net assets of the JHCIT.
Notes to Schedule of Investments – Page 2
All collateral received will be in an amount equal to at least 100% of the market value of the loaned securities and is intended to be maintained at that level during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund the next business day. During the loan period, the Fund continues to retain rights of ownership, including dividends and interest of the loaned securities.
Notes to Schedule of Investments – Page 3
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Bank and Thrift Opportunity Fund
By: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and
Chief Executive Officer
Date: September 14, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ Keith F. Hartstein
-------------------------------------
Keith F. Hartstein
President and
Chief Executive Officer
Date: September 14, 2007
By: /s/ Charles A. Rizzo
-------------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: September 14, 2007