It was all change for Bank of Bermuda's leadership yesterday with Philip Butterfield moving into the top CEO post, and operations and financial reins turned over to HSBC executives.

Mr. Butterfield's promotion ? he was formerly number two as COO ? makes him the first black leader of a major Bermuda financial services organisation. He succeeds Henry Smith, who was named to the temporary post of executive director and assumes oversight of the company's integration into the HSBC network over the next year.

Andy Gent and Nigel Crow were named as COO and CFO respectively, with immigration approvals for these positions being "in hand".

In a surprise move, management changes swiftly followed the official closing of the bank's sale to HSBC this morning. Although it had been announced late last year that Mr. Butterfield would eventually succeed Mr. Smith, it was not expected to happen until the first year after the bank's sale.

The deal was given regulatory and shareholder approval on Monday, and top HSBC executives Stephen Green and Iain Stewart were yesterday on the Island to ink the deal. Both have also been named to the Bank of Bermuda board of directors.

At a Press conference yesterday, chairman Joseph Johnson welcomed Mr. Green and Mr. Stewart to the board, saying the appointment of "two such senior people on our board is a key indication of the importance HSBC is attaching to this amalgamation".

Mr. Johnson called the bank's takeover by HSBC a "momentous occasion in the bank's 114-year history" marking "a new beginning, not an end for what is undoubtedly one of the proudest institutions in Bermuda".

Under HSBC, Mr. Johnson said the Bank of Bermuda could focus "on building on the rich legacy of this bank for customers, staff and the people of Bermuda. We are excited about what can be achieved as a separate, and stand alone brand name within HSBC."

He said benefits would include the expansion of products and services and enhanced training opportunities for bank staff.

Mr. Green, CEO of the HSBC Group said: "Today marks an important day in the history of the Bank of Bermuda, a company which we at HSBC have long recognised and admired. And it is a big day for HSBC as well. The more I get to know this new member of our family, the more I can recognise very clearly that we share the same values and international outlook. And I am convinced that by bringing our two organisations together will benefit our customers, our shareholders and our colleagues.

"Bermuda will benefit, I believe strongly, from association with a global bank. And we are one of the largest, most respected and most successful financial services companies. I think the arrival of HSBC in Bermuda will help the economy further grow and diversify financial services sector and enhance both local and international banking services, and we look forward to playing a full part in that. And better growth opportunities for the Bank of Bermuda, locally and internationally, I see an extended product range, better economies of scale, and technical support the HSBC network can bring to the Bermuda market, which strengthens the services available here for international customers.

Mr. Green said the bank could also expect to see more business: "Our financial strength will enable the bank to attract more business from corporate clients and the Island's international business sector, and we see it too as good news for the Island's insurance sector.

Mr. Green said one should not think, despite HSBC's giant stature ? it is the second largest world bank by market capitalisation ? that it does not tread lightly in each of the markets it operates in around the globe.

"We take care that our size and global reach should never dilute our commitment to being a local bank in each community we serve, and I am committed to ensure that will be as true for Bermuda as for any other part of the HSBC family."

Putting his money where his mouth is, Mr. Green said: "In delivery of that commitment, I am pleased to tell you that in order to mark our arrival in Bermuda we are donating $1 million to charitable support in Bermuda particularly focusing on educational activity. Details of how this is committed are being worked out, and will be provided in due course.

When asked if HSBC makes such generous donations in all of the markets it moves into, Mr. Green said: "I should say we do not make acquisitions every day" but that the company did take being a good corporate citizen seriously.

The bank's sale to HSBC has raised a number of concerns from job cuts ? with up to 250 redundancies announced and fears of more on the back of HSBC's history of outsourcing ? to worries that the bank would lose its Bank of Bermuda identity.

Both bank and HSBC management have tried to assuage fears, saying that the Bank of Bermuda brand would remain intact, and that there were no plans for outsourcing. In fact, HSBC said the Bank of Bermuda could see growth, with a commitment by HSBC to move its trust business to the Island.

Mr. Green asked Bermuda to give HSBC time to prove it meant to make good on commitments.

"We recognise that this is a new era that involves change, and change inevitably brings uncertainty but we believe that the benefits are clear and will become evident. We ask that you give us the time, and judge us by actions and not mere words. We will follow through on this and believe this will be a real benefit for Bermuda."

Mr. Green said the Bank of Bermuda under HSBC would continue to be governed and regulated by the Bermuda Monetary Authority and Government, and that it must follow different regulatory rules in all of the markets in which it did business in around the world.