The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (NYSE: NTB | BSX: NTB.BH) today announced that it will effect a mandatory redemption of its 8.00% Non-Cumulative Perpetual Limited Voting Preference Shares par value $0.01 per share ("Preference Shares") on 15 December 2016. The Board of Directors determined that it is an appropriate time to redeem the Preference Shares given Butterfield's strong capital position following its IPO and the Bank's ability to generate excess capital from operations. The redemption will result in the discontinuance of annual payments of $16.4 million in Preference Share dividends and Government of Bermuda Guarantee fees, equating to $0.31 per common share based on 53,248,307 common shares outstanding as at 30 September 2016. Michael Collins, Butterfield's Chief Executive Officer said, "Our successful US public offering was an important milestone for Butterfield, marking the Bank's full recovery from the impact of the global financial crisis and the beginning of a new chapter of growth. The redemption of Preference Shares will allow our common shareholders to participate more fully in the Bank's success going forward. "I would like to thank the Preference Shareholders who invested in Butterfield at a time when we needed their support. We are pleased to be in a position to retire the entire Preference Share issue with a payment of $215.8 million, comprising principal and current dividends of $186.5 million and a make-whole premium of $29.3 million, representing the present value of future dividends that Preference Shareholders would have received through 22 June 2019. I would also like to thank the Government of Bermuda for supporting the Preference Share offering in 2009 with its unconditional guarantee of dividends and principal." Formal notification and complete information regarding the mandatory redemption of Preference Shares will be mailed to Preference Shareholders not later than 14 November 2016. General information about the Make-Whole Redemption Price and the process by which Preference Shares will be redeemed is noted below.