John Hancock Bank and Thrift Opportunity Fund Announces Adoption of New Managed Distribution Plan and Declares Increased Quarterly Distribution

BOSTON, March 15 /PRNewswire-FirstCall/ -- John Hancock Bank and Thrift Opportunity Fund (NYSE: BTO) (the "Fund"), a closed-end fund managed by John Hancock Advisers, LLC (the "Adviser"), and subadvised by MFC Global Investment Management (U.S.), LLC (the "Subadviser"), announced today that its Board of Trustees voted to approve the adoption of a new managed distribution plan (the "Plan").  The Adviser believes that the Plan may enhance shareholder value and potentially decrease the discount between the market price and the net asset value ("NAV") of the Fund's common shares.

Under the new Plan, the Fund will make quarterly distributions of an amount equal to 1.25% of the Fund's net asset value, based upon an annual rate of 5% as of each measuring date.  The amount of each quarterly distribution will be determined based on the NAV of the Fund at the close of the New York Stock Exchange on the last business day of the month ending two months prior to each quarterly declaration date.

This distribution amount is based on the Fund's NAV of $17.78 as of January 29, 2010, the Fund's first quarterly measuring date, which equates to an annualized NAV distribution rate of 5.00%.  As of March 12, 2010, the annualized NAV distribution rate is 4.70% and the market value distribution rate is 5.62% based on the Fund's NAV of $18.92 and a closing share price of $15.82.  This distribution represents an increase over the Fund's last quarterly distribution of $ 0.0319.

Since the suspension of the prior managed distribution plan in May 2009, the market has improved considerably, helping to significantly increase the gains in the portfolio.  The Adviser has been monitoring the Fund's gains and losses and believes that the gains in the portfolio are now at a level that may support the new Plan over the long-term.

Additionally, portfolio management continues to be bullish on the banking sector with four positive themes playing out over the next few years. First, they believe that credit fundamentals will improve as the economy moves out of recession, leading to tremendous earnings leverage for the banks. Second, with the shadow banking market closed, loans and deposits are moving back into the banking system. Banks are getting better spreads on loans and seeing less competition and lower rates on deposits leading to improved net interest margins. Third, they believe that industry consolidation will accelerate; first through the FDIC failed bank process and then through traditional acquisition activity that removes weak competitors and achieves synergies for the acquirers. Finally, bank stock valuations remain attractive today compared to historic levels. They believe improving industry fundamentals will lead to normalized valuations and strong stock performance.

Distributions under the Plan may consist of net investment income, net realized long-term capital gains, net realized short-term capital gains and, to the extent necessary, return of capital.  However, the Plan intends to fund each distribution, to the extent possible, in a tax-advantaged manner through the realization of long-term capital gains where the distribution amount exceeds net investment income.  The Fund will seek to realize capital gains for this purpose in a manner which the Adviser and Subadviser believe is consistent with prudent portfolio management and the investment objective, policies and guidelines of the Fund.

The Fund may also make additional distributions (i) for purposes of avoiding federal income tax on the Fund of investment company taxable income and net capital gain, if any, not included in such regular distributions and (ii) for purposes of avoiding federal excise tax of ordinary income and capital gain net income, if any, not included in such regular quarterly distributions.

A portion of the Fund's current distribution may include sources other than net investment income, including a return of capital. Investors should understand that a return of capital is not a distribution from income or gains of the Fund. As required under the Investment Company Act of 1940, a notice with the estimated components of the distribution will be mailed to shareholders at the time of payment if it does not consist solely of net investment income. Such notice will also be posted to the Fund's website at www.jhfunds.com. The notice should not be used to prepare tax returns as the estimates indicated in the notice may differ from the ultimate federal income tax characterization of distributions. After the end of each calendar year, investors will be sent a Form 1099-DIV informing them how to report distributions received during that year for federal income tax purposes.

John Hancock Bank and Thrift Opportunity Fund is a diversified, closed-end fund. The Fund seeks long-term capital appreciation by normally investing at least 80% of its net assets in equity securities of U.S. regional banks, thrifts and holding companies that primarily own or receive a substantial portion of their income from regional banks or thrifts.

The views of the investment team reflect its own opinions and they are in no way guarantees of future events, and are not intended to be used as an investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.

Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

Fund shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. The data provided in this press release are for information only and are not intended for trading purposes. The Fund is subject to investment risks, including possible loss of principal invested. Portfolio information is subject to change due to active management.

Before investing, prospective investors should consider carefully the Fund's objective, risks, and charges and expenses. For more complete information about the Fund, please contact your financial advisor.

About John Hancock Funds

The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds, manages more than $53.7 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at December 31, 2009.

About John Hancock Financial and Manulife Financial Corporation

John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$440 billion (US$420 billion) at December 31, 2009.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at www.johnhancock.com.

SOURCE John Hancock Bank and Thrift Opportunity Fund