The Bank of N.T. Butterfield & Son has announced financial results for the quarter and year ended December 31, 2022.
Net income for the year ended December 31, 2022 was $214.0 million, or $4.29 per diluted common share, compared to $162.7 million, or $3.26 per diluted common share, for the year ended December 31, 2021. Core net income 1 for the year ended December 31, 2022 was $215.7 million, or $4.33 per diluted common share, compared to $163.6 million, or $3.28 per diluted common share, for the year ended December 31, 2021.
The return on average common equity for the year ended December 31, 2022 was 25.7% compared to 16.8% for the year ended December 31, 2021. The core return on average tangible common equity 1 for the year ended December 31, 2022 was 28.6%, compared to 18.7% for the year ended December 31, 2021. The efficiency ratio for the year ended December 31, 2022 was 59.2% compared with 65.9% for the year ended December 31, 2021. The core efficiency ratio 1 for the year ended December 31, 2022 was 58.9% compared with 65.5% for the year ended December 31, 2021.
Financial highlights for the fourth quarter of 2022:
- Net income of $63.1 million, or $1.26 per share, and core net income 1 of $63.2 million, or $1.27 per share
- Return on average common equity of 31.6% and core return on average tangible common equity 1 of 34.9%
- Net interest margin of 2.79%, cost of deposits of 0.78%
- Board declares dividend for the quarter ended December 31, 2022 of $0.44 per share
Financial highlights for the full year 2022:
- Net income of $214.0 million, or $4.29 per share, and core net income 1 of $215.7 million, or $4.33 per share
- Return on average common equity of 25.7%, and core return on average tangible common equity 1 of 28.6%
- Net interest margin of 2.41%, cost of deposits of 0.34%
- Active capital management with aggregate quarterly dividends of $1.76 per share
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, commented: “Butterfield’s results for the full year and fourth quarter of 2022 continued to demonstrate the Bank’s strong return profile, which benefited from rising market interest rates, non-interest income growth, and disciplined expense management that helped drive the efficiency ratio below 60%.
“As we enter 2023, we believe that Butterfield's healthy returns on common equity will continue to support investor returns and overall growth objectives. Our long-standing strategy remains focused on limiting credit exposure in our conservative investment portfolio, growth through targeted acquisitions and thoughtful capital management. I was pleased to see tangible book value per common share recover 15.7% during the fourth quarter.”
