Henry Smith to president and CEO, the financial institution announced yesterday.

Effective tomorrow, Mr. Smith will take over from Charles Vaughan-Johnson who succeeded Donald Lines in 1994.

Mr. Smith, whose career with the bank of Bermuda spans 24 years, was slated to take the helm of Bermuda's flagship company in January, 1998.

Last June it was announced that Mr. Smith would become bank president and CEO.

"For both personal reasons and due to the fact that the transitional period for which we had planned was proceeding so well, Mr. Vaughan-Johnson has recommended to the board, and the board has accepted, that the effective date of his retirement from the bank as president and CEO should be advanced,'' Bank of Bermuda chairman Eldon Trimingham said.

Mr. Vaughan-Johnson's wife, Susan, passed away earlier this month.

Mr. Smith was appointed chief operating officer last June, an interim position created to facilitate the transition of responsibility from Mr.

Vaughan-Johnson.

After joining the Bank of Bermuda in 1973 as a management trainee, Mr. Smith would be appointed to top positions including senior vice president, retail banking and executive vice president, Europe.

"The bank is enormously grateful to Charles Vaughan-Johnson for leading us through these transition years.

"One of his major objectives was to ensure a smooth transition to a highly qualified successor and that could not have been more effectively carried out,'' Mr. Trimingham said.

"We are delighted to have Mr. Smith now taking firm hold of the management of the bank and our deepest appreciation goes to Mr. Vaughan-Johnson for his commitment to the bank during this process.'' Mr. Vaughan-Johnson joined the bank in 1989 as senior vice president and general manager, private banking. He became president and CEO in April, 1994.

Both Mr. Smith and Mr. Vaughan-Johnson were unavailable for comment yesterday.

OFFERED TO RETIRE -- Bank CEO Charles Vaughan-Johnson TAKING OVER TOMORROW -- Bank of Bermuda CEO Henry Smith