Just nine days after opening its $200 million preference share issuance, Butterfield Bank has stopped taking applications from prospective investors.

On Friday the bank also confirmed that investors in the preferred stock would get a return of exactly eight percent.

Because of regulatory rules, the bank was not able to disclose how much has been raised, nor whether all the investment has come from inside Bermuda.

A Butterfield Bank spokesman did confirm that no more applications were being accepted, even though the offering does not officially close until June 22.

The spokesman added: "Our marketing focus was on Bermuda."

The staggering response means that the Government, which had agreed to purchase any of the shares not snapped up by the private sector, will not be obliged to buy any of the shares.

"We are extremely appreciative of the support we have received from the local community, which I believe reflects the pride Bermudians have in their community bank and the high expectations they have for Butterfield going forward," said Alan Thompson, Butterfield's president and chief executive officer.

"All of us at Butterfield are working very hard not only to meet, but to exceed those expectations."

At the bank's first information session on the offering on June 3, Mr. Thompson said the bank was keen to get as many investors in Bermuda for the preference stock before turning to investment from the US. Butterfield raised the money to meet heightened regulatory requirements for a "capital buffer" to ensure it could withstand the impact of a severe economic downturn.

Government agreed to guarantee the principal and dividends for an annual fee of one percent, after Butterfield was unsuccessful in raising the capital in private markets.

"I would also like to, once again, thank the Government of Bermuda for their guarantee of the preference shares," Mr. Thompson said. "Although it was not necessary for the Government to directly subscribe for any portion of the preference share issue, their support of the bank, particularly during the last few months, is very much appreciated."

The dividend will be paid on a quarterly basis on March 15, June 15, September 15 and December 15 every year for the next 10 years, starting on September 15, 2009.

UBS Investment Bank acted as the lead underwriter and sole global contributor of the offering. The selling group consisted of Butterfield Securities, LOM, First Bermuda Group, Barrington Investments, Capital G Private Banking and HSBC Bermuda.