The Bank of N.T. Butterfield and Son have announced financial results for the quarter ended March 31, 2023.
Net income for the first quarter of 2023 was $62.2 million, or $1.24 per diluted common share, compared to net income of $63.1 million, or $1.26 per diluted common share, for the previous quarter and $44.4 million, or $0.89 per diluted common share, for the first quarter of 2022. Core net income 1 for the first quarter of 2023 was $62.2 million, or $1.24 per diluted common share, compared to $63.2 million, or $1.27 per diluted common share, for the previous quarter and $44.7 million, or $0.90 per diluted common share, for the first quarter of 2022.
The return on average common equity for the first quarter of 2023 was 28.0% compared to 31.6% for the previous quarter and 19.7% for the first quarter of 2022. The core return on average tangible common equity 1 for the first quarter of 2023 was 30.5%, compared to 34.9% for the previous quarter and 21.9% for the first quarter of 2022. The efficiency ratio for the first quarter of 2023 was 56.0%, compared to 55.7% for the previous quarter and 64.0% for the first quarter of 2022. The core efficiency ratio 1 for the first quarter of 2023 was 56.0% compared with 55.6% in the previous quarter and 63.7% for the first quarter of 2022.
Key highlighters were:
- Net income and core net income 1 of $62.2 million, or $1.24 per share
- Return on average common equity of 28.0% and core return on average tangible common equity 1 of 30.5%
- Net interest margin of 2.88%, cost of deposits of 1.10%
- Board declares dividend for the quarter ended March 31, 2023 of $0.44 per share
- First closing of previously announced acquisition of Credit Suisse trust assets
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, commented: “The first quarter of 2023 was a strong start to the year. Butterfield continues to have a highly liquid and well-funded balance sheet with a diverse client base across multiple jurisdictions, sectors, and currencies. We are thoughtful and strategic in our management of the balance sheet and maintain a conservative liquidity and capital posture.
“With regards to M&A, we are pleased to report the completion of the first closing of the acquisition of trust assets from Credit Suisse, which strengthens our presence in the Singapore market. In this first tranche, we acquired 180 high quality, long-term client relationships. We continue to make progress on closing The Bahamas and the second tranche of Singapore clients, followed by Guernsey in the coming quarters.”
