- Net income of $50.4 million, or $0.90 per share;
- Core net income1 of $49.1 million, or
$0.88 per share;
- Return on average common equity of 23.2%; core return on average
tangible common equity1 of 24.9%;
- Net interest margin of 3.37%;
- Board declares a dividend for the quarter ended September 30, 2018
of $0.38 per common share;
- James Burr appointed Lead Independent Director following retirement
of David Zwiener.
HAMILTON, Bermuda -- (Business Wire)
The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the “Bank”)
(NYSE: NTB) (BSX: NTB.BH) today announced financial results for the
quarter ended September 30, 2018.
Third quarter core net income1 was $49.1 million, or $0.88
per diluted common share, compared to $51.7 million, or $0.93 per
diluted common share in the previous quarter and $40.7 million, or $0.73
per diluted common share, for the third quarter of 2017. Core
non-interest expenses were $82.2 million in the third quarter of 2018,
compared with $78.2 million in the previous quarter and $73.6 million in
the third quarter of 2017. The sequential increase in expenses was
primarily due to severance costs of $2.4 million following an announced
management restructuring during the third quarter of 2018. In addition,
during the third quarter Butterfield had expenses of approximately $0.7
million associated with the set up a new bank in Jersey.
The core return on average tangible common equity1 for the
third quarter of 2018 was 24.9%, down from 27.6% in the previous quarter
and up from 22.2% in the third quarter of 2017. The return on average
assets for the third quarter of 2018 was 1.9%, up from 1.8% in the
previous quarter and 1.5% in the third quarter of 2017. The core
efficiency ratio1 for the third quarter of 2018 was 63.2%
compared with 59.0% in the previous quarter and 62.8% in the third
quarter of 2017.
David Zwiener, who has served as a Director since August 2016 and as
Lead Independent Director since July 2017, has decided to retire from
Butterfield’s Board. James (“Jim”) Burr, who has served as a Director
since June 2016, was appointed Lead Independent Director effective today.
Commenting on the results, Michael Collins, Butterfield’s Chairman and
Chief Executive Officer, said: “During the third quarter, we continued
to generate strong results from our core businesses, capital efficient
non-interest income and higher loan balances. Expense management is a
priority for us, particularly as we integrate the previously announced
acquisitions. Our strategy continues to generate industry leading
returns with an attractive risk profile. We remain focused on pursuing
additional growth through accretive acquisitions of trust businesses and
banking in existing jurisdictions.”
|
| |
(1) | |
See table “Reconciliation of US GAAP Results to Core Earnings” below
for reconciliation of US GAAP results to non-GAAP measures
|
| |
|
With regard to the change in Lead Independent Director, Michael Collins
said, “I would like to thank David for his guidance and dedication to
the interests of Butterfield’s Board and shareholders over the last two
years. We all wish David the very best in his future endeavors.
“I am pleased that Jim Burr has agreed to serve as Lead Independent
Director. Jim has a longstanding relationship with the Bank, and his
financial expertise has made him a valuable member of Butterfield’s
Board.”
Net interest income (“NII”) for the third quarter of 2018 was $88.3
million, an increase of $0.9 million compared with NII of $87.4 million
in the previous quarter and $74.3 million in the third quarter of 2017.
Increased NII in the third quarter of 2018 was due to favorable loan
repricing and investment yields.
Net interest margin (“NIM”) for the third quarter of 2018 continued to
expand to 3.37%, up 17 basis points from the NIM of 3.20% in the
previous quarter and up 56 basis points from the NIM of 2.81% in the
third quarter of 2017. NIM improved further in the third quarter of 2018
as rising interest rates benefited assets with continued low costs of
deposits.
Non-interest income was $41.3 million for the third quarter of 2018,
compared with $41.9 million in the previous quarter and $38.2 million in
the third quarter of 2017. The year-over-year increase resulted from new
fee revenues earned following the acquisition of Deutsche Bank’s trust
business.
Average customer deposit balances of $9.4 billion were down from $9.7
billion in the third quarter of 2017 and $10.1 billion in the second
quarter of 2018.
Capital Management
The current total capital ratio as at September 30, 2018 was 23.3% as
calculated under Basel III, which was effective for reporting purposes
beginning on January 1, 2016. As of December 31, 2017, the Bank reported
its total capital ratio under Basel III at 19.9%. Both of these ratios
are significantly above regulatory requirements.
The Board remains committed to a balanced capital return policy. The
Board again declared an interim dividend of $0.38 per common share to be
paid on November 16, 2018 to shareholders of record on November 5, 2018.
In addition to dividends, Butterfield currently has a Board approved
share repurchase authorization of up to one million common shares
available for capital management. The Bank did not repurchase any common
shares in the third quarter of 2018.
ANALYSIS AND DISCUSSION OF THIRD QUARTER RESULTS
| Income statement |
|
|
|
| Three months ended (Unaudited) |
|
| (in $ millions) |
|
|
|
| September 30, 2018 |
|
|
|
| June 30, 2018 |
|
|
|
| September 30, 2017 |
|
|
Non-interest income
| | | |
|
41.3
| |
|
|
|
|
41.9
| |
|
|
|
|
38.2
| | |
|
Net interest income before provision for credit losses
|
|
|
|
|
88.3
|
|
|
|
|
|
87.4
|
|
|
|
|
|
74.3
|
|
|
| Total net revenue before provision for credit losses and other
gains (losses) | | | | |
129.6
| | | | | |
129.3
| | | | | |
112.5
| | |
|
Provision for credit losses
| | | | |
2.8
| | | | | |
0.5
| | | | | |
0.7
| | |
|
Total other gains (losses)
|
|
|
|
|
0.7
|
|
|
|
|
|
(1.6
|
)
|
|
|
|
|
1.8
|
|
|
| Total net revenue | | | | |
133.0
| | | | | |
128.3
| | | | | |
114.9
| | |
|
Non-interest expenses
|
|
|
|
|
(82.2
|
)
|
|
|
|
|
(78.2
|
)
|
|
|
|
|
(73.6
|
)
|
|
| Total net income before taxes | | | | |
50.8
| | | | | |
50.1
| | | | | |
41.3
| | |
|
Income tax expense
|
|
|
|
|
(0.4
|
)
|
|
|
|
|
(0.3
|
)
|
|
|
|
|
(0.2
|
)
|
|
| Net income | | | | |
50.4
| | | | | |
49.7
| | | | | |
41.1
| | |
| | | | | | | | | | | | | | | | |
|
| Net earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
| | | | |
0.91
| | | | | |
0.90
| | | | | |
0.75
| | |
|
Diluted
| | | | |
0.90
| | | | | |
0.89
| | | | | |
0.74
| | |
| | | | | | | | | | | | | | | | |
|
|
Per diluted share impact of other non-core items 1 |
|
|
|
|
(0.02
|
)
|
|
|
|
|
0.04
|
|
|
|
|
|
(0.01
|
)
|
|
| Core earnings per share on a fully diluted basis 1 |
|
|
|
| 0.88 |
|
|
|
|
| 0.93 |
|
|
|
|
| 0.73 |
|
|
| | | | | | | | | | | | | | | | |
|
|
Adjusted weighted average number of participating shares on a
fully diluted basis (in thousands of shares)
| | | | |
56,029
| | | | | |
55,904
| | | | | |
55,465
| | |
| | | | | | | | | | | | | | | | |
|
| Key financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common equity
| | | | |
23.2
|
%
| | | | |
23.9
|
%
| | | | |
20.7
|
%
| |
|
Core return on average tangible common equity 1 | | | | |
24.9
|
%
| | | | |
27.6
|
%
| | | | |
22.2
|
%
| |
|
Return on average assets
| | | | |
1.9
|
%
| | | | |
1.8
|
%
| | | | |
1.5
|
%
| |
|
Net interest margin
| | | | |
3.37
|
%
| | | | |
3.20
|
%
| | | | |
2.81
|
%
| |
|
Core efficiency ratio 1 | | | | |
63.2
|
%
| | | | |
59.0
|
%
| | | | |
62.8
|
%
| |
| | | | | | | | | | | | | | | | | | | |
|
(1) |
|
See table “Reconciliation of US GAAP Results to Core Earnings” below
for reconciliation of US GAAP results to non-GAAP measures
|
| |
|
| Balance Sheet |
|
|
|
| As at |
|
| (in $ millions) |
|
|
|
| September 30, 2018 |
|
|
|
| December 31, 2017 |
|
|
Cash due from banks
| | | |
|
1,259
| |
|
|
|
|
1,535
| | |
|
Securities purchased under agreement to resell
| | | | |
72
| | | | | |
179
| | |
|
Short-term investments
| | | | |
76
| | | | | |
250
| | |
|
Investments in securities
| | | | |
4,576
| | | | | |
4,706
| | |
|
Loans, net of allowance for credit losses
| | | | |
4,092
| | | | | |
3,777
| | |
|
Premises, equipment and computer software
| | | | |
157
| | | | | |
165
| | |
|
Goodwill and intangibles
| | | | |
77
| | | | | |
61
| | |
|
Other assets
|
|
|
|
|
121
|
|
|
|
|
|
107
|
|
|
| Total assets |
|
|
|
|
10,430
|
|
|
|
|
|
10,779
|
|
|
| | | | | | | | | | | |
|
|
Total deposits
| | | | |
9,066
| | | | | |
9,536
| | |
|
Other liabilities
| | | | |
349
| | | | | |
303
| | |
|
Long-term debt
|
|
|
|
|
143
|
|
|
|
|
|
117
|
|
|
| Total liabilities | | | | |
9,558
| | | | | |
9,956
| | |
|
Common shareholders’ equity
|
|
|
|
|
872
|
|
|
|
|
|
823
|
|
|
| Total shareholders' equity |
|
|
|
|
872
|
|
|
|
|
|
823
|
|
|
| Total liabilities and shareholders' equity |
|
|
|
|
10,430
|
|
|
|
|
|
10,779
|
|
|
| | | | | | | | | | | |
|
| Key Balance Sheet Ratios: |
|
|
|
| September 30, 2018 |
|
|
|
| December 31, 2017 |
|
|
Common equity tier 1 capital ratio
| | | | |
20.2
|
%
| | | | |
18.2
|
%
| |
|
Tier 1 capital ratio
| | | | |
20.2
|
%
| | | | |
18.2
|
%
| |
|
Total capital ratio
| | | | |
23.3
|
%
| | | | |
19.9
|
%
| |
|
Leverage ratio
| | | | |
7.8
|
%
| | | | |
6.9
|
%
| |
|
Risk-Weighted Assets (in $ millions)
| | | | |
4,194.6
| | | | | |
4,254.2
| | |
|
Risk-Weighted Assets / Total Assets
| | | | |
40.2
|
%
| | | | |
39.5
|
%
| |
|
Tangible common equity ratio
| | | | |
7.7
|
%
| | | | |
7.1
|
%
| |
|
Non-accrual loans/gross loans
| | | | |
1.1
|
%
| | | | |
1.2
|
%
| |
|
Non-performing assets/total assets
| | | | |
0.4
|
%
| | | | |
0.4
|
%
| |
|
Total coverage ratio
| | | | |
64.0
|
%
| | | | |
80.9
|
%
| |
|
Specific coverage ratio
| | | | |
31.7
|
%
| | | | |
31.1
|
%
| |
| | | | | | | | | | | | | |
|
QUARTER ENDED SEPTEMBER 30, 2018 COMPARED WITH THE QUARTER ENDED JUNE
30, 2018
Net Income
Net income for the quarter ended September 30, 2018 was $50.4 million,
up $0.7 million from $49.7 million in the prior quarter.
The $0.7 million increase in net income in the quarter ended
September 30, 2018 over the previous quarter was due principally to the
following:
-
$2.8 million decrease in provisions for credit losses from a lower
release from the general provisions during the quarter;
-
$2.3 million increase in interest income principally from interest
earned on loans from slightly increased volumes and the impact of
repricing, which increased yields, as well as increased yields on the
investment portfolio and on short-term investments;
-
$2.2 million increase in total gains and losses, principally a result
of a settlement loss related to a non-core settlement loss on the
de-risking of a defined benefit pension plan in the prior quarter;
-
$2.9 million increase in salaries and other employee benefits,
principally from severance payments made from a management
restructuring completed in the current quarter;
-
$1.1 million increase in the remaining non-interest expense items, due
to increased other non-interest expense as a result of higher
technology and communication costs resulting from costs incurred with
the new jurisdictions in Jersey, Singapore and Mauritius; and
-
$0.7 million decrease in non-interest income due principally a result
of lower foreign exchange revenue from lower transaction volumes.
Non-Core Items1
Non-core items resulted in net credits to expenses and gains of $1.2
million in the quarter ended September 30, 2018, an increase of $3.2
million from net losses and expenses of $2.0 million in the prior
quarter. Non-core items for the period comprised principally:
-
$1.2 million of credits to non-core professional and outside services
expenses associated with the previously announced acquisition of
Deutsche Bank’s banking businesses in the Cayman Islands, Guernsey and
Jersey as the Bank determined this to be an asset acquisition, which
entails capitalizing the associated acquisition expenses;
-
$0.2 million of expenses associated with an internal review and
account remediation program of US-person account holders; and
-
$0.2 million of gains and losses as a result of gains realized on the
liquidation settlement from a former investment in a SIV.
Management does not believe that the expenses, gains or losses
identified as non-core are indicative of the results of operations of
the Bank in the ordinary course of business.
|
| |
(1) | |
See table “Reconciliation of US GAAP Results to Core Earnings” below
for reconciliation of US GAAP results to non-GAAP measures
|
| |
|
BALANCE SHEET COMMENTARY AT SEPTEMBER 30, 2018 COMPARED WITH
DECEMBER 31, 2017
Total Assets
Total assets of the Bank were $10.4 billion at September 30, 2018, down
$0.3 billion from December 31, 2017. The Bank maintained a highly liquid
position at September 30, 2018, with $3.9 billion of cash and demand
deposits with banks, reverse repurchase agreements and short and
long-term investments, excluding held-to-maturity investments,
representing 37.1% of total assets, compared with 49.1% at December 31,
2017.
Loans Receivable
The loan portfolio totaled $4.1 billion at September 30, 2018, an
increase of $0.3 billion, due to new residential loan origination in the
Channel Islands and the UK, as well as increases in government and
commercial lending in Bermuda.
Allowance for credit losses at September 30, 2018 totaled $28.3 million,
a decrease of $7.2 million from year-end 2017. The movement was due to
slightly lower general provisioning rates across several jurisdictions,
which was partially offset by several new specific provisions.
The loan portfolio represented 39.2% of total assets at September 30,
2018 (December 31, 2017: 35.0%), while loans as a percentage of customer
deposits increased from 39.7% at year-end 2017 to 45.2% at September 30,
2018, both of which are due to an increase in loans underwritten during
the quarter.
As of September 30, 2018, the Bank had gross non-accrual loans of $44.2
million, representing 1.1% of total gross loans, a slight decrease from
the $43.9 million, or 1.2%, of total loans at year-end 2017. Net
non-accrual loans were $30.2 million, equivalent to 0.7% of net loans.
Butterfield continues to engage proactively with clients who experience
financial difficulty.
Other real estate owned (“OREO”) had a decrease of $4.4 million to $4.7
million for the third quarter ended September 30, 2018, primarily as a
result of sales transactions completed in the quarter.
Investment in Securities
The investment portfolio was $4.6 billion at September 30, 2018, down
$0.1 billion from December 31, 2017.
The investment portfolio was made up of high quality assets with 99.5%
invested in A-or-better-rated securities. The investment yield increased
slightly from the previous quarter to 2.8% as at September 30, 2018.
Total net unrealized losses were $121.8 million, compared to $19.2
million at year-end 2017. The increase in unrealized losses is
attributable largely to continued increases in treasury rates during
2018.
Deposits
Average deposits were at $9.4 billion in the third quarter of 2018
compared to $9.7 billion in the fourth quarter of 2017. The cost of
deposits increased six basis points from the previous quarter to 20
basis points.
Average Balance Sheet2
|
|
| |
| | |
For the three months ended
|
| | |
September 30, 2018
|
|
|
June 30, 2018
|
|
|
September 30, 2017
|
(in $ millions)
| | |
Average balance ($)
|
|
|
Interest ($)
|
|
|
Average rate (%)
| | |
Average balance ($)
|
|
|
Interest ($)
|
|
|
Average rate (%)
| | |
Average balance ($)
|
|
|
Interest ($)
|
|
|
Average rate (%)
|
Assets | | | |
|
| |
|
| | | | |
|
| |
|
| | | | |
|
| |
|
| |
Cash due from banks and short-term investments
| | |
1,668.0
| | |
5.8
| | | |
1.38
| | | |
2,348.0
| | |
7.9
| | | |
1.36
| | | |
2,241.5
| | |
4.6
| | | |
0.81
| |
Investment in securities
| | |
4,660.4
| | |
32.6
| | | |
2.78
| | | |
4,665.5
| | |
31.0
| | | |
2.67
| | | |
4,561.9
| | |
25.5
| | | |
2.22
| |
Trading
| | | 1.2 | | | — | | | | — | | | | 1.2 | | | — | | | | — | | | | 0.8 | | | — | | | | — | |
Available-for-sale
| | | 2,742.7 | | | 18.0 | | | | 2.60 | | | | 2,921.9 | | | 18.1 | | | | 2.48 | | | | 3,265.0 | | | 16.3 | | | | 1.98 | |
Held-to-maturity
| | | 1,916.5 | | | 14.7 | | | | 3.04 | | | | 1,742.4 | | | 12.9 | | | | 2.98 | | | | 1,296.1 | | | 9.2 | | | | 2.83 | |
Loans
| | |
4,050.5
| | |
56.6
| | | |
5.54
| | | |
3,957.6
| | |
53.7
| | | |
5.44
| | | |
3,682.3
| | |
47.9
| | | |
5.16
| |
Commercial
| | | 1,396.8 | | | 20.5 | | | | 5.84 | | | | 1,303.5 | | | 18.6 | | | | 5.73 | | | | 1,240.3 | | | 16.0 | | | | 5.11 | |
Consumer
| | | 2,653.7 |
|
| 36.0 |
| | | 5.38 | | | | 2,654.1 |
|
| 35.1 |
| | | 5.30 | | | | 2,442.0 |
|
| 31.9 |
| | | 5.19 | |
Interest earning assets | | | 10,378.9 | | | 95.0 | | | | 3.63 | | | | 10,971.1 | | | 92.7 | | | | 3.39 | | | | 10,485.8 | | | 78.0 | | | | 2.95 | |
Other assets
| | |
397.5
|
|
|
| | |
—
| | | |
350.6
|
|
|
| | |
—
| | | |
327.8
|
|
|
| | |
—
| |
Total assets | | | 10,776.4 |
|
| 95.0 |
|
|
| 3.50 |
| | | 11,321.8 |
|
| 92.7 |
|
|
| 3.28 |
| | | 10,813.5 |
|
| 78.0 |
|
|
| 2.86 |
|
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
| | |
7,283.5
| | |
(4.8
|
)
| | |
(0.26
|
)
| | |
7,862.0
| | |
(3.6
|
)
| | |
(0.18
|
)
| | |
7,255.3
| | |
(2.5
|
)
| | |
(0.14
|
)
|
Securities sold under agreement to repurchase
| | |
—
| | |
—
| | | |
—
| | | |
1.8
| | |
—
| | | |
(1.96
|
)
| | |
—
| | |
—
| | | |
—
| |
Long-term debt
| | |
143.2
|
|
|
(1.9
|
)
| | |
(5.31
|
)
| | |
130.2
|
|
|
(1.7
|
)
| | |
(5.25
|
)
| | |
117.0
|
|
|
(1.3
|
)
| | |
(4.26
|
)
|
Interest bearing liabilities | | | 7,426.7 | | | (6.7 | ) | | | (0.36 | ) | | | 7,994.1 | | | (5.3 | ) | | | (0.27 | ) | | | 7,372.3 | | | (3.7 | ) | | | (0.20 | ) |
Non-interest bearing current accounts
| | |
2,161.6
| | | | | |
—
| | | |
2,213.4
| | | | | |
—
| | | |
2,413.9
| | | | | |
—
| |
Other liabilities
| | |
263.5
|
|
|
| | |
—
| | | |
302.8
|
|
|
| | |
—
| | | |
255.7
|
|
|
| | |
—
| |
Total liabilities | | | 9,851.8 | | | (6.7 | ) | | | (0.27 | ) | | | 10,510.2 | | | (5.3 | ) | | | (0.20 | ) | | | 10,042.0 | | | (3.7 | ) | | | (0.15 | ) |
Shareholders’ equity
| | |
924.6
| | | | | |
—
| | | |
811.5
| | | | | |
—
| | | |
771.6
| | | | | |
—
| |
Total liabilities and shareholders’ equity | | | 10,776.4 | | | | | | — | | | | 11,321.8 | | | | | | — | | | | 10,813.5 | | | | | | (0.15 | ) |
Non-interest-bearing funds net of non-interest earning assets
(free balance)
| | |
2,952.2
|
|
|
| | | | | |
2,977.1
|
|
|
| | | | | |
3,113.4
|
|
|
| | | |
Net interest margin | | | | | | 88.3 |
|
|
| 3.37 |
| | | | | | 87.4 |
|
|
| 3.20 |
| | | | | | 74.3 |
|
|
| 2.81 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
(2) |
|
Averages are based upon a daily averages for the periods indicated.
|
| |
|
Assets Under Administration and Assets Under Management
Total assets under administration for the trust and custody businesses
were $105.5 billion and $25.1 billion, respectively, while assets under
management were $5.1 billion as at September 30, 2018. This compares
with $95.4 billion, $27.5 billion and $5.0 billion, respectively, at
December 31, 2017.
Reconciliation of US GAAP Results to Core Earnings
The table below shows the reconciliation of net income in accordance
with US GAAP to core earnings, a non-GAAP measure, which excludes
certain significant items that are included in our US GAAP results of
operations. We focus on core net income, which we calculate by adjusting
net income to exclude certain income or expense items that are not
representative of our business operations, or “non-core”. Core net
income includes revenue, gains, losses and expense items incurred in the
normal course of business. We believe that expressing earnings and
certain other financial measures excluding these non-core items provides
a meaningful base for period-to-period comparisons, which management
believes will assist investors in analyzing the operating results of the
Bank and predicting future performance. We believe that presentation of
these non-GAAP financial measures will permit investors to assess the
performance of the Bank on the same basis as management.
| |
|
|
|
| | |
| Core Earnings | | | | | Three months ended | |
| (in $ millions except per share amounts) |
|
|
|
| September 30, 2018 |
|
|
|
| June 30, 2018 |
|
|
|
| September 30, 2017 |
|
| Net income to common shareholders |
|
|
|
|
50.4
|
|
|
|
|
|
49.7
|
|
|
|
|
|
41.1
|
|
|
| Non-core items | | | | | |
|
|
|
| |
|
|
|
| | |
| Non-core (gains) losses | | | | | | | | | | | | | | | | |
|
Gain on disposal of a pass-through note investment (formerly a SIV)
| | | | |
(0.2
|
)
| | | | |
(0.1
|
)
| | | | |
(2.5
|
)
| |
|
Adjustment to holdback payable for a previous business acquisition
| | | | |
—
| | | | | |
—
| | | | | |
0.1
| | |
|
Settlement loss on de-risking on a defined benefit plan
|
|
|
|
|
—
|
|
|
|
|
|
1.5
|
|
|
|
|
|
—
|
|
|
|
Total non-core (gains) losses
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
1.4
|
|
|
|
|
|
(2.4
|
)
|
|
| Non-core expenses | | | | | | | | | | | | | | | | |
|
Early retirement program, redundancies and other non-core
compensation costs
| | | | |
—
| | | | | |
—
| | | | | |
0.1
| | |
|
Tax compliance review costs
| | | | |
0.1
| | | | | |
0.1
| | | | | |
0.4
| | |
|
Business acquisition costs
| | | | |
(1.2
|
)
| | | | |
0.4
| | | | | |
1.1
| | |
|
Restructuring charges and related professional service fees
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
0.4
|
|
|
|
Total non-core expenses
|
|
|
|
|
(1.1
|
)
|
|
|
|
|
0.6
|
|
|
|
|
|
2.0
|
|
|
| Total non-core items |
|
|
|
|
(1.2
|
)
|
|
|
|
|
2.0
|
|
|
|
|
|
(0.4
|
)
|
|
| Core net income |
|
|
|
|
49.1
|
|
|
|
|
|
51.7
|
|
|
|
|
|
40.7
|
|
|
| Core net income attributable to common shareholders |
|
|
|
|
49.1
|
|
|
|
|
|
51.7
|
|
|
|
|
|
40.7
|
|
|
| | | | | | | | | | | | | | | | |
|
|
Average common equity
| | | | |
859.9
| | | | | |
833.5
| | | | | |
788.9
| | |
|
Less: average goodwill and intangible assets
|
|
|
|
|
(76.7
|
)
|
|
|
|
|
(83.0
|
)
|
|
|
|
|
(61.3
|
)
|
|
|
Average tangible common equity
|
|
|
|
|
783.2
|
|
|
|
|
|
750.4
|
|
|
|
|
|
727.6
|
|
|
| Core earnings per share fully diluted 1 |
|
|
|
|
0.88
|
|
|
|
|
|
0.93
|
|
|
|
|
|
0.73
|
|
|
| Return on common equity |
|
|
|
|
23.2
|
%
|
|
|
|
|
23.9
|
%
|
|
|
|
|
20.7
|
%
|
|
| Core return on average tangible common equity |
|
|
|
|
24.9
|
%
|
|
|
|
|
27.6
|
%
|
|
|
|
|
22.2
|
%
|
|
| | | | | | | | | | | | | | | | |
|
|
Non-interest expenses
| | | | |
82.2
| | | | | |
78.2
| | | | | |
73.6
| | |
|
Less: non-core expenses
| | | | |
1.1
| | | | | |
(0.6
|
)
| | | | |
(2.0
|
)
| |
|
Less: amortization of intangibles
|
|
|
|
|
(1.4
|
)
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
(1.0
|
)
|
|
|
Core non-interest expenses before amortization of intangibles
| | | | |
81.9
| | | | | |
76.3
| | | | | |
70.6
| | |
|
Core revenue before other gains and losses and provision for credit
losses
|
|
|
|
|
129.5
|
|
|
|
|
|
129.3
|
|
|
|
|
|
112.5
|
|
|
| Core efficiency ratio |
|
|
|
| 63.2 | % |
|
|
|
| 59.0 | % |
|
|
|
| 62.8 | % |
|
| | | | | | | | | | | | | | | | | | | |
|
Conference Call Information
Butterfield will host a
conference call to discuss the Bank’s results on Wednesday, October 24,
2018 at 10:00 a.m. Eastern Daylight Time. Callers may access the
conference call by dialing +1 (844) 855 9501 (toll-free) or +1 (412) 858
4603 (international) ten minutes prior to the start of the call. A live
webcast of the conference call, including a slide presentation, will be
available in the investor relations section of Butterfield’s website at www.butterfieldgroup.com.
A replay of the call will be archived on the Butterfield website
thereafter.
About Non-GAAP Financial Measures:
Certain statements in
this release involve the use of non-GAAP financial measures. We believe
such measures provide useful information to investors that is
supplementary to our financial condition, results of operations and cash
flows computed in accordance with GAAP; however, our non-GAAP financial
measures have a number of limitations. As such, investors should not
view these disclosures as a substitute for results determined in
accordance with GAAP, and they are not necessarily comparable to
non-GAAP financial measures that other companies use.
Forward-Looking Statements:
Certain of the statements made
in this release are forward-looking statements within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. You can identify
these forward-looking statements through our use of words such as “may,”
“will,” “anticipate,” “assume,” “should,” “indicate,” “would,”
“believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,”
“point to,” “project,” “could,” “intend,” “target” and other similar
words and expressions of the future. Forward-looking statements include
statements with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates, intentions, and
future performance, and involve known and unknown risks, uncertainties
and other factors, which may be beyond our control, and which may cause
the actual results, performance, capital, ownership or achievements of
the Bank to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements due
to a variety of factors, including worldwide economic conditions, the
successful integration of acquisitions, success in business retention
and obtaining new business and other factors. All statements other than
statements of historical fact are statements that could be
forward-looking statements.
All forward-looking statements attributable to us are expressly
qualified in their entirety by this cautionary notice, including,
without limitation, those risks and uncertainties described in our
Securities and Exchange Commission (“SEC”) reports and filings. Such
reports are available upon request from the Bank,or from the
SEC, including through the SEC’s website at http://www.sec.gov.
We have no obligation and do not undertake to review, update, revise or
correct any of the forward-looking statements included herein, whether
as a result of new information, future events or other developments.
About Butterfield:
Butterfield is a full-service bank and
wealth manager headquartered in Hamilton, Bermuda, providing services to
clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our
principal banking operations are located, and The Bahamas, Switzerland,
Singapore and the United Kingdom, where we offer specialized financial
services. Banking services comprise deposit, cash management and lending
solutions for individual, business and institutional clients. Wealth
management services are composed of trust, private banking, asset
management and custody. In Bermuda, the Cayman Islands and Guernsey, we
offer both banking and wealth management. In The Bahamas, Singapore and
Switzerland, we offer select wealth management services. In the UK, we
offer residential property lending. In Jersey, we offer select banking
and wealth management services. Butterfield is publicly traded on the
New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange
(symbol: NTB.BH). Further details on the Butterfield Group can be
obtained from our website at: www.butterfieldgroup.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181023006037/en/
Contacts:
The Bank of N.T. Butterfield & Son Limited
Investor Relations
Contact:
Noah Fields, 441-299-3816
Investor Relations
Fax:
441-295-1220
noah.fields@butterfieldgroup.com
or
Media
Relations Contact:
Mark Johnson, 441-299-1624
Group Head of
Communications
Fax: 441-295-3878
mark.johnson@butterfieldgroup.com
Source: The Bank of N.T. Butterfield & Son Limited
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