Police are continuing to hunt for an offender who brandished a firearm during the aggravated robbery of the BNZ bank in Mosgiel.
Armed police swarmed the area on Friday after the incident, which happened about 11.30am and left staff badly shaken.
The bank was closed for the rest of the day and police cordoned off the area while a scene examination was conducted.
A police spokeswoman said it appeared a man had entered the bank, presented what was believed to be a firearm at a teller and demanded money.
"He has left the scene in a dark-coloured two-door vehicle with a quantity of cash."
The scene examination had since been completed, but police were continuing to speak to witnesses and review CCTV footage.
Support was also being provided to people in the bank at the time, the spokeswoman said.
The Mosgiel Central Kindergarten was locked down for a short time because it was next door to the bank.
People attending a funeral nearby, at Campbell and Sons in Gordon Rd, were also asked to remain inside while police assessed the danger posed by the alleged offender.
However, many business owners and customers in the area spoken to by the Otago Daily Times, said they were unaware of the incident until after it had happened.
It is not the first time the bank has been targeted by a robber.
It was robbed in 2007 and 2008. No weapons were involved in those incidents.
• Anyone who saw a vehicle fitting the description in the Mosgiel area around the time of the robbery is asked to contact Dunedin police on (03) 471-4800.