Butterfield Bank Reports First Quarter Results
The Bank of N.T. Butterfield & Son Limited announced financial results for the quarter ended March 31, 2018.
First quarter core net income was $45.0 million, or $0.81 per diluted common share, compared to $42.2 million, or $0.76 per diluted common share for the fourth quarter of 2017 and $38.5 million, or $0.70 per diluted common share, for the first quarter of 2017.
The core return on average tangible common equity for the first quarter of 2018 was 24.3%, up from 22.3% in the previous quarter and 23.4% in the first quarter of 2017.
The return on average assets for the first quarter of 2018 was 1.6%, up from 1.5% in the previous quarter and 1.3% in the first quarter of 2017. The core efficiency ratio1 for the first quarter of 2018 was 62.3% compared with 65.4% in the previous quarter and 62.5% in the first quarter of 2017.
“I am very encouraged by our strong results in the first quarter of 2018,” said Michael Collins, Butterfield’s Chairman and Chief Executive Officer.
“The Bank continues to deliver exceptional earnings as we benefit from our strategically positioned, asset sensitive balance sheet, high quality commercial and residential lending portfolio and capital efficient, diversified fee revenues.
“We are very pleased with the progress being made integrating the banking and trust acquisitions from Deutsche Bank and continue to seek out other acquisition opportunities in lines of business and geographies that meet our strategic requirements.”
Net interest income [“NII”] for the first quarter of 2018 was $81.8 million, an increase of $0.4 million compared with NII of $81.4 million in the fourth quarter of 2017 and an increase of $13.6 million compared with NII of $68.3 million in the first quarter of 2017. Increased NII in the first quarter of 2018 was due to active reinvestment of investable assets into a more favorable yield environment and higher yields in the adjustable-rate loan portfolio.
Net interest margin [“NIM”] for the first quarter of 2018 was 3.05%, up 18 basis points from the NIM of 2.87% in the previous quarter and up 47 basis points from the NIM of 2.58% in the first quarter of 2017.
Results for the first quarter of 2018 included a release of provision for credit losses of $1.9 million compared with a release for credit losses of $5.4 million in the previous quarter and a provision for credit losses of $0.3 million in the first quarter of 2017.
Non-interest income was $39.8 million for the first quarter of 2018, compared with $42.4 million in the previous quarter and $38.5 million in the first quarter of 2017.
