Bank of Butterfield Announces Offer to Buy Back Small and Fractional Share Holdings

Hamilton Bermuda, 15th May 2001 - The Bank of N.T. Butterfield & Son Limited has today announced an offer to shareholders who own less than 10 shares in the Bank to buy back these holdings as part of its share repurchase programme. In addition, the Bank also announced, under the same programme, an offer to shareholders who have holdings of over 10 shares which contain a fraction of a share to buy back that fractional element. The offer price of $40 is at a premium to the current market price in order to encourage acceptance of the offer.

The total number of shares that qualify under this offer is some 1,700, compared to 19.5 million shares currently in issue. Bank of Butterfield remains committed to enhancing shareholder value. It has determined that the processing and administration of such small shareholdings and €˜fractional' shares is no longer cost effective.

Note to Editors: Bank of Butterfield is a publicly traded corporation with its shares listed on the Bermuda and Cayman Islands stock exchanges. The Bank's share price is published daily in The Royal Gazette and is also available on Bloomberg Financial Markets (symbol: NTB.BH) and The Bermuda Stock Exchange web site: www.bsx.com. Further details on the Bank can be obtained from its web site at: www.bankofbutterfield.com.