Bank of Butterfield Financial Results For 2019 Q1
The Bank of Butterfield announced financial results for the first quarter ended March 31, 2019.
Net income for the first quarter was $52.1 million or $0.96 per diluted common share, compared to $50.9 million or $0.92 per common share for the previous quarter and $44.2 million, or $0.79 per common share in the first quarter of 2018.
First quarter core net income was $51.7 million, or $0.95 per diluted common share, compared to $51.1 million, or $0.92 per diluted common share, in the previous quarter and $45.0 million, or $0.81 per diluted common share, for the first quarter of 2018.
The core return on average tangible common equity for the first quarter of 2019 was 25.6%, broadly in line with previous quarters. The core efficiency ratio for the first quarter of 2019 was 60.1% compared with 61.5% in the previous quarter and 62.3% in the first quarter of 2018.
Commenting on the results, Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said: “The solid first quarter was underpinned by our capital efficient fee businesses, well positioned balance sheet and focused cost management.
“We are prepared to meet the challenges of the current interest rate environment through expense control and disciplined capital management. During this quarter, we also finished onboarding the remaining Deutsche Bank clients in the Channel Islands. While deposit balances have fluctuated, we have been pleased to see periods with overall balances in excess of $1 billion from this transaction.
“Today, we are also pleased to announce an agreement to acquire ABN AMRO [Channel Islands] Limited from the ABN AMRO Group. This significant acquisition is a Channel Islands banking business similar to our existing banks in Guernsey, Jersey, Cayman and Bermuda. Acquiring ABN AMRO [Channel Islands] is a unique opportunity for Butterfield to grow accretively and gain market share in the Channel Islands.
“Butterfield’s 161 year history in English Common Law jurisdictions, as well as our six acquisitions since 2014, have cemented our position as a leading offshore bank and trust company. In addition, this transaction diversifies our balance sheet and risk profile, from a geographic perspective, in a high quality market in which we have decades of experience.”
More details about the acquisition have been provided in a separate press release and SEC filing also published this morning.
