The Bank of N.T. Butterfield & Son Limited (Butterfield) has announced its financial results for the fourth quarter and year ended December 31, 2021.
Net income for the year ended December 31, 2021 was $162.7 million, or $3.26 per diluted common share, compared to $147.2 million, or $2.90 per diluted common share, for the year ended December 31, 2020.
Core net income for the year ended December 31, 2021 was $163.6 million, or $3.28 per diluted common share, compared to $154.5 million, or $3.04 per diluted common share, for the year ended December 31, 2020.
The core return on average tangible common equity for the year ended December 31, 2021 was 18.7%, compared to 17.3% for the year ended December 31, 2020. The efficiency ratio for the year ended December 31, 2021 was 65.9% compared with 67.6% for the year ended December 31, 2020. The core efficiency ratio for the year ended December 31, 2021 was 65.5% compared with 66.0% for the year ended December 31, 2020.
Michael Collins (pictured), Butterfield’s Chairman and Chief Executive Officer, commented, “Butterfield has performed well throughout the past year, as we embraced new opportunities and managed the health and safety challenges of the pandemic.
“We continued to navigate the very low interest rate environment by improving efficiencies, leveraging technology and enhancing the client experience. With an improved interest rate outlook for 2022, we are well positioned with Butterfield’s historically asset sensitive balance sheet.
“I look forward to continuing Butterfield’s growth with our strong balance sheet, leading market positions, solid infrastructure, efficient operations and customer centric culture. I would like to thank our staff, clients, the board of directors and all of the stakeholders that continue to contribute to Butterfield’s success.”
Net income and core net income for the fourth quarter of 2021 was $41.7 million, or $0.84 per diluted common share, compared to net income of $39.8 million, or $0.80 per diluted common share, for the previous quarter and $42.1 million, or $0.84 per diluted common share, for the fourth quarter of 2020 and core net income for the third quarter of 2021 of $40.0 million, or $0.80 per diluted common share, and $42.9 million, or $0.86 per diluted common share, for the fourth quarter of 2020.
Period end deposit balances increased to $13.9 billion from $13.3 billion as at December 31, 2020. Deposits remained elevated across all jurisdictions. Deposit balances decreased slightly compared to the prior quarter as economies continue to re-open and customers activate their savings.
The Bank continued its balanced capital return policy. The Board again declared a quarterly dividend of $0.44 per common share to be paid on March 14, 2022 to shareholders of record on February 28, 2022.
During the fourth quarter of 2021, Butterfield repurchased 0.2 million common shares under the Bank’s expiring share repurchase plan authorization. The Board approved a new replacement share repurchase program on February 14, 2022, authorizing the purchase of up to 2.0 million common shares through to February 28, 2023. The share repurchase program will take effect on March 1, 2022.
The current total regulatory capital ratio as at December 31, 2021 was 21.2% as calculated under Basel III, compared to 19.8% as at December 31, 2020. Both of these ratios remain significantly above the Basel III regulatory requirements applicable to the Bank.
The full results will be available from the Butterfield website.
