The Bank of N.T. Butterfield & Son Limited reported net income of $26.1 million for its first quarter ending 31 March 2004. This represents an increase in net income for the period of 59.1% over that achieved at the same stage last year. Earnings per share for the quarter, at 127 cents per share, increased by 47 cents, or 58.8%, compared to the same period last year and rose 30 cents, or 30.9%, on the preceding quarter.

Alan Thompson, President & Chief Executive Officer said, *”We remain pleased with the Bank’s performance and the significant progress made across all areas of our core businesses over the past year as we continue to implement our business model.”*

**Bahamas Operations**

Bank of Butterfield entered The Bahamas in 2003, acquiring **Thorand Bank & Trust**and **Leopold Joseph (Bahamas) Limited**. Graham Brooks, Executive Vice President, International & Trust, Bank of Butterfield, said, *”Both businesses have high quality clients and, when merged **(Bank of Butterfield (Bahamas) Ltd.)**, will form a solid foundation for growth in The Bahamas.”* During the first quarter, total income from Bahamas-based operations was up $1.0 million to $1.4 million on the preceding quarter, reflecting the acquisition of **Deerfield Fund Services Limited**, now renamed **Butterfield Fund Services (Bahamas) Limited**, in February this year.

Net income achieved from the Bahamian businesses was $0.3 million for the quarter.

Bank of Butterfield offers a full range of Community Banking services in Bermuda, Barbados and the Cayman Islands, encompassing Retail and Corporate Banking and Treasury activities. As a specialist offshore financial services group the Bank also provides Private Banking, Wealth Management & Fiduciary Services and Investment & Pension Fund Administration Services from its headquarters in Bermuda and its subsidiary offices in the Cayman Islands, Guernsey, The Bahamas and the United Kingdom.