Butterfield Concludes Successful Preference Share Offering

Hamilton, Bermuda─23 June 2009:  The Bank of N.T. Butterfield & Son Limited ("Butterfield" or "the Bank") (Ticker: NTB.BH) announced the official closing of the Offering Period for an issue of USD 200 million of Government guaranteed, 8.00% Non-Cumulative Perpetual Limited Voting Preference Shares (the "Preference Shares") (Ticker: NTBP.BH) on 22 June 2009. 

The Preference Share principal and dividend payments are guaranteed by the Government of Bermuda and carry a rating of Aa2 from Moody's and AA+ from Fitch.  The Preference Shares will be listed on both the Bermuda Stock Exchange and the Luxembourg Stock Exchange, trading on the Euro MTF Market.

The initial Preference Share Offering was fully subscribed by private investors, with more than 95% of the value of subscriptions coming from Bermuda residents and institutions.  This means that the Government of Bermuda, which had pledged to purchase any portion of the Preference Share issue that was not privately subscribed, was not required to purchase any Preference Shares.

Butterfield received USD 200 million (less commissions and offering expenses) in proceeds from the Preference Share issue, which will be used by the Bank for general corporate purposes and working capital.  The net proceeds of the issue are accorded tier 1 capital treatment by the Bermuda Monetary Authority.

Alan Thompson, Butterfield's President & Chief Executive Officer, commented on the conclusion of the Preference Share Offering, saying "Butterfield is pleased with the results of our recent Preference Share Offering.  Our objective was to create a capital buffer to help us withstand a severe and prolonged economic downturn.  We achieved that€”raising $200 million of new tier 1 capital€”without the need for the Government to invest in the issue.  We couldn't have hoped for a better result."  He added, "I would like to take this opportunity to acknowledge the Government's support of the Bank and, once again, thank them for the guarantee they provided.  We believe it was a significant factor in the successful placement of the issue."

Mr. Thompson also addressed the availability of Preference Shares, saying "The Preference Share issue was oversubscribed by a significant margin. Although oversubscription is not unusual with equity offerings of this nature, I believe the strong interest in this issue is a reflection of the pride that Bermudians have in their local Bank and the confidence they have in Butterfield's and Bermuda's futures. All subscribers who submitted their applications by the close of business on 11 June were able to participate in the issue, and we allocated the available Shares among those subscribers equitably; our goal was to ensure that participation in the issue was shared among a wide cross section of investors in our community." 

For investors who did not receive the full allocation of Shares subscribed€”but also available to the wider community€”Butterfield is offering deposit products with special interest rates for a limited time.  For example, until 30 June, investors with a minimum investment of USD 10,000 can sign up for the US dollar Step Up term deposit, offering a cumulative interest payout of 7.46% over a three-year term.  Interested investors should visit their local Butterfield Banking Centre, contact their Relationship Managers or visit or the Butterfield website (www.butterfieldgroup.com) for details.