Butterfield Bank has repurchased 7.5 million of its own common shares and nearly 4,500 of its preferred shares in the past year plus the month of January.And pleasing for investors, the bank’s shares, which closed at $1.30 yesterday, have risen 31 percent since they hit a low of 99 cents in spring last year.This shows the bank’s buy-back programme has been effective, analysts say.“In fact, share repurchases, in addition to dividends, are ways to increase shareholder value,” said Bryan Dooley, portfolio manager for LOM Asset Management.“Less shares means more earnings per share and potentially a higher stock price. Everyone is happier with a higher stock price, including senior management who is generally vested in the company. Also, a higher stock price means less of a chance for a takeover, all things being equal.”Mr Dooley added: “Furthermore, buying back stock takes cash and also indicates profitability and an attempt to reward shareholders. The tool is especially effective when the stock is trading below at or below book value as in this case.”Butterfield reports each month the volume of shares repurchased under its Share Repurchase Programme to the Bermuda Stock Exchange and it is published on the BSX website.Last week Butterfield reported that during the month of January the bank bought for Treasury 207,273 common shares at an average cost of $1.271 per share.The bank said it also repurchased and cancelled 88 NTB 8% Preferred shares at an average cost of $1,231.42.During 2012, in total, the bank repurchased 7.3 million common shares to be held as Treasury shares at a cost of $9 million, and 4,422 Preference shares, which were subsequently cancelled, at a cost of $5.4 million. The February tally is not yet available, the bank said.Asked about the current shareholdings of major investors CIBC and Carlyle, a Butterfield spokesman said: “As was reported at the time of the recapitalisation of the Bank in 2010, none of the new investors are able to increase (or decrease) their ownership positions in Butterfield through additional share purchases (or sales) until March 2014 without the prior approval of the Board of Directors. As such, CIBC’s and Carlyle’s ownership percentages are materially unchanged.”Bloomberg data shows CIBC has an 18.64 percent stake in Butterfield, while Carlyle also owns an 18.64 percent stake.Typically private equity firms plan to exit from their original investments within five to seven years, a financial analyst told us.“We cannot speak for CIBC, Carlyle or any of our other Shareholders in terms of their future investment plans,” Butterfield’s spokesman said.