Butterfield Bank is set to repurchase up to three million ordinary shares valued at $1 each over the next year.

The Bank advised the Bermuda Stock Exchange of its intention to do so, starting at the beginning of January.

As at November 30, 2007, three million shares represented 3.35 percent of the total issued shares of the Bank.

This notification is subject to appropriate market conditions and repurchases will only be made in the best interests of the Bank, with the directors consider that share repurchase is a good means of enhancing shareholder value while increasing earnings per share, it said.

In the 12 months to December 31, 2007, shares repurchased and cancelled totalled 376,809 shares at an average price of $19.65 and aggregate cost of $7.4 million while share repurchased and held as treasury shares totalled 1,907,119 shares at an average price of $20 and aggregate cost of $38.1 million.

In addition, in the 12 months to the end of December 2007, the Bank's Stock Option Trust purchased 1,094,354 shares at an average price of $20.73 and aggregate cost of $22.7 million which are intended to be used to satisfy the Bank's obligations with respect of the Stock Option Plan.