The Bank of N.T. Butterfield & Son Limited has acquired the Bahamas-based Deerfield Fund Services Limited, a company that provides offshore fund administration services.

*”This acquisition has strategic significance,”* said Graham Brooks, Executive Vice President, International & Trust, Bank of Butterfield Group. *”It will enable us to enhance the services we provide in The Bahamas through the expanded delivery of fund administration, one of Bank of Butterfield’s core business activities. Deerfield has built a high quality niche business with excellent potential for growth.”*

The business will be re-named Butterfield Fund Services (Bahamas) Limited, and will continue to be led by Managing Director Heather Bellot, who will report to Robert Lotmore, Managing Director, Bank of Butterfield (Bahamas) Limited.

Mr. Lotmore commented, *”Deerfield’s highly skilled employees and specialised technology will allow us to offer a superior service to a growing market. The company’s activities and customer base are an excellent fit with our business, and we anticipate opportunities to expand the services we offer to fund managers.”*

Established in 1999, Deerfield employs a team of 12 people and at its last financial yearend, 31 December 2003, its assets under administration were $1.8 billion.

Last year, the Bank of Butterfield acquired Leopold Joseph (Bahamas) Limited and Thorand Bank & Trust, both Bahamian entities, continuing operations as Bank of Butterfield (Bahamas) Limited. At the end of the year, it also announced its cash acquisition of the entire share capital of The Mutual Bank of The Caribbean Inc., a Barbados retail bank. At that time, Mr. Brooks said these acquisitions were *”..consistent with our strategy to expand into markets where we can successfully deliver our core products and services.”*