The Bank of N.T. Butterfield & Son Ltd. has selected a Chief Executive Officer to replace Calum Johnston and has no immediate plans to list shares of the Bank on a foreign exchange.

Speaking at the Annual General Meeting for shareholders at the Bermuda Underwater Exploration Institute yesterday, bank Chairman James King told shareholders of the search for a new CEO.

"After an exhaustive search which produced over 70 applicants a selection was made. We believe that we have found an outstanding banker to take the helm at the bank,'' he said.

"Unfortunately, until a work permit is received and the candidate is able to resign from his present Chief Executive Office post, we cannot reveal his identity."

Mr. King went on to say, however, that the new CEO is expected to be in Bermuda early next year, and that Mr. Johnston was committed to remain as long as he is needed to ensure a smooth transition.

Mr. Johnston has been at the helm since December 1997 and the search for a new CEO was launched in March of this year.

Since Mr. Johnston came to the bank, he has turned the company around and profits have soared. Expenses have been checked, unprofitable lines cut back and staff morale boosted.

Shareholders appeared pleased with the bank's results this year with a return on equity of 22.7 percent - up from 16.4 percent last year - and earnings per share at $3.45, up more than 50 percent from last year.

Other highlights for the year included the purchase of Matheson Bank Ltd. of London in February and the introduction of the first internet banking service in Bermuda and Cayman.

In April, the bank was granted exemption from the requirement to maintain 60 percent Bermudian ownership.

The exemption from the 60/40 rule, which was also granted to the Bank of Bermuda and Bermuda Commercial Bank, sparked media reports that the banks would soon list their shares on a foreign exchange, possibly the Nasdaq market in the US

However, in response to a question from a shareholder at yesterday's meeting, Mr. King said that there had been many media reports about stated intentions of the Bank of Bermuda to list on an overseas exchange and these intentions had been assumed to be true for the Bank of Butterfield.

Mr. King said: "We will look at listing in the US, but it has not been decided upon in any way."

Neither the Bank of Bermuda nor Bermuda Commercial Bank have listed their shares on a foreign exchange to date.

Shareholders also heard from Mr. Johnston that the terrorist attack on America on September 11 did not negatively impact on the bank.

"We have assessed the possible effect on the Bank of the attack and any subsequent events," he told shareholders, and continued: "Our business is not greatly sensitive to a decline in the stock market and, at this time, we believe we can meet our plans for the year provided we are extra careful on the expense side of the ledger.

"We are taking all the steps we consider prudent at this time and feel confident that we can continue to deliver satisfactory results for the shareholders."

The Bank has also contributed to the relief fund set up to help victims of the tragedy.