=========================NOTES TO FINANCIAL
The Southeastern Thrift and Bank Fund, Inc.
NOTE A -
The Southeastern Thrift and Bank Fund, Inc. (the "Fund") is a diversified closed-end management investment
company registered under the Investment Company Act of 1940. The Fund's primary investment objective is
long-term capital appreciation. Its secondary investment objective is current income.
Significant accounting policies of the Fund are as follows:
VALUATION OF INVESTMENTS Investments in listed securities are valued at the last sales price on the
exchange on which such securities are primarily traded. Listed securities for which no sales are reported and
securities traded in the over-the-counter market are valued at the average of the most recent bid and asked
prices. Investment securities for which no current market quotations are available are valued at fair market value
as determined in good faith under the direction of the Fund's Board of Directors. Short-term investments which
mature in less than 61 days when acquired by the Fund are valued at amortized cost. Short-term investments
which mature in more than 60 days are valued at current market value until the sixtieth day prior to maturity at
which time they are valued at amortized cost.
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, Inc. (the "Adviser"), a wholly owned subsidiary of The Berkeley Financial Group, may
participate in a joint repurchase agreement. Aggregate cash balances are invested in one or more 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 f