Bank Of N.t. Butterfield & Son Limited (the) Voting · NYSE:NTB
Bank Of N.t. Butterfield & Son Limited (the) Voting — The Bank of N.T. Butterfield & Son — Q4 2021 Earnings Presentation
25 slides from Bank Of N.t. Butterfield & Son Limited (the) Voting's earnings presentation, Feb 15, 2022
Slide 1: Fourth Quarter and Year-End 2021 Earnings Presentation
Fourth Quarter and Year-End 2021 Earnings Presentation The Bank of N.T. Butterfield & Son Limited February 15, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, obje
Slide 3: Agenda and Overview
Agenda and Overview Presenters Agenda Butterfield Overview Michael Collins • Overview • Leading Bank in Attractive Markets Chairman and Chief Executive Officer • Full Year 2021 Highlights • Strong Capital Generation and Return Michael Schrum • Fourth Quarter 2021 Financials • Resilient, Capital Effi
Slide 4: Full Year 2021 Highlights
Full Year 2021 Highlights (In US$ millions) vs. 2020 • Net income of $162.7 million, or $3.26 per share • Core Net Income** of $163.6 million, or $3.28 per share 2021 $ % • Return on average common equity of 16.8%; core return on average Net Interest Income 299.8 $ (17.8) tangible common equity** of
Slide 5: Financials
@ BurterFiecd
Slide 6: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights • Net income and core net income** of $41.7 million, or $0.84 per (In US$ millions) vs. Q3 2021 vs. Q4 2020 share Q4 2021 $ % $ % • Return on average common equity of 17.1%; core return on average Net Interest Income $ 74.5 $ (1.2) $ (1.1) tangible common equity** of 1
Slide 7: Income Statement: Net Interest Income
Income Statement Net Interest Income Net Interest Margin & Yields Net Interest Income before Provision for Credit Losses - Trend (In US$ millions) (In US$ millions) Q4 2021 vs. Q3 2021 $75.6 $75.7 Avg. Balance Yield Avg. Balance Yield $74.5 Cash, S/T Inv. & Repos $ 3,316.3 0.03 % $ (894.5) —% Invest
Slide 8: Income Statement: Non-Interest Income
Income Statement Non-Interest Income Non-Interest Income Trend (In US$ millions) (In US$ millions) $52.7 Q4 2021 vs. Q3 2021 $49.0 $47.8 Asset management $ 7.6 $ 0.1 Banking 15.4 2.8 Foreign exchange revenue 10.9 0.1 Trust 14.2 1.3 Custody and other 3.9 0.1 Other 0.8 (0.7) Total Non-Interest Income
Slide 9: Income Statement: Non-Interest Expenses
Income Statement Non-Interest Expenses Core Non-Interest Expense* Trend Core Non-Interest Expenses* vs. Q3 2021 (In US$ millions) (In US$ millions) Q4 2021 $ % $82.4 $84.2 $83.7 Salaries & Benefits** $ 41.1 $ (0.9) (2.2)% Technology & Comm. 15.7 (0.6) (3.6)% Property 8.0 0.2 2.1 % Professional & O/S
Slide 10: Capital Requirements and Dividend Return
Capital Requirements and Dividend Return Regulatory Capital (Basel III) - Total Capital Ratio** Leverage Capital 9.7% 21.2% 1.8% 6.8% 1.0% 7.9% 14.7% 5.8% 13.5% Butterfield - Current US Peer Median* Butterfield Current BMA Minimum US Peer Median* TCE/TA TCE/TA Ex Cash Dividend Payout Ratio • Regulat
Slide 11: Balance Sheet
Balance Sheet Total Assets (In US$ millions) Q4 2021 Q4 2020 (In US$ billions) Cash & Equivalents $ 2,180 $ 3,290 $15.3 $15.3 $14.7 Reverse Repos & S/T Investments 1,295 1,020 Investments 6,237 4,863 Loans (net) 5,241 5,161 Other Assets 382 405 $6.0 $6.2 Total Assets $ 15,335 $ 14,739 $4.9 Int. Bear
Slide 12: Asset Quality
Asset Quality Non-Accrual Loans Investment Portfolio (In US$ millions) $72.5 Loan Distribution Rating Distribution $63.8 AA 4.5% $61.0 Consumer 4.1% A 0.4% Res Mtg 68.8% Comm’l R/E 13.2% Other Comm’l 9.1% Government 4.9% AAA 95.2% $5.2 billion $6.2 billion Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.2
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity Average Balance - Balance Sheet Interest Rate Sensitivity 17.8% Average Balances 14.2% (US$Mil) Weighted 13.0% Average Life Q4 2021 vs. Q3 2021 Duration vs. Q3 2021 6.6% 7.0% Cash & Reverse Repos & S/T Invest. 3,316.3 (894.5) 0.2 <0.05 N/A AFS 3,499.6 438.6 4.0 (0.1) 5.4 HT
Slide 14: Appendix
@ BurterFiecd
Slide 15: Deposits
Appendix Customer Deposits Average Deposit Volume and Cost of Deposits Deposit Composition (In US$ millions) By Currency 6.5% 5.4% 5.8% 4,000 20.1% 21.7% 21.5% 3,500 73.4% 72.9% 72.6% 3,000 2,500 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Deposits USD / USD Pegged GBP Other 2,000 0.71% By Type 0.64% 0.
Slide 16: Residential Mortgage Loans and Commercial Loans
Appendix Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billion) $2.5 $2.7 $3.2 $3.4 $3.6 $1.1 $1.2 $1.7 $1.6 $1.4 32% 37% 45% 52% 47% 49% 48% 48% 49% 50% 22% 21% 9% 14% 3% 22% 18% 18% 18% 18% 21% 46% 2% 2% 5% 7% 42% 42% 34% 32% 33% 32% 29% 29% 26% 2017 2018 2019 2020 2021 2017 2018
Slide 17: Balance Sheet Trends
Appendix Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) 2021 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Assets Cash & Equivalents $ 2,180 $ 2,310 $ 2,766 $ 2,582 $ 3,290 $ 2,161 $ 2,228 $ 1,978 $ 2,550 Reverse Repos & S/T Investments 1,295 1,446 1,651 1,236 1,020 1,133 1,136
Slide 18: Average Balance Sheet Trends
Appendix Average Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) Q4 2021 Q3 2021 Q4 2020 Average Interest Average rate Average Interest Average rate Average Interest Average rate Assets balance ($) ($) (%) balance ($) ($) (%) balance ($) ($) (%) Cash due from banks, reve
Slide 19: Income Statement Trends
Appendix Income Statement Trends (in millions of US Dollars, unless otherwise indicated) 2021 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Net Interest Income $ 74.5 $ 75.7 $ 74.7 $ 74.9 $ 75.6 $ 75.3 $ 79.1 $ 87.6 $ 86.2 Non-Interest Income 52.7 49.0 48.8 47.6 47.8 46.9 41.7 47.6 49.7 Prov. for Credit Reco
Slide 20: Non-Interest Income & Expense Trends
Appendix Non-Interest Income & Expense Trends (in millions of US Dollars, unless otherwise indicated) 2021 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Non-Interest Income Asset Management $ 7.6 $ 7.4 $ 7.4 $ 7.4 $ 7.2 $ 6.8 $ 7.4 $ 7.8 $ 7.8 Banking 15.4 12.6 12.5 11.4 13.6 13.4 9.1 11.2 14.0 FX Revenue 10
Slide 21: Core Non-Interest Expense Trends
Appendix Core Non-Interest Expense* Trends (in millions of US Dollars, unless otherwise indicated) 2021 2020 2019 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Salaries & Benefits** $ 41.1 $ 42.0 $ 41.8 $ 39.0 $ 40.6 $ 42.2 $ 41.4 $ 44.1 $ 46.6 Technology & Comm. 15.7 16.3 15.7 16.1 16.1 16.3 16.3 16.4 16.5 Profession
Slide 22: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (in millions of US Dollars, unless otherwise indicated) 2021 2020 Q4 Q3 Q2 Q1 Q4 Net income A $ 41.7 $ 39.8 $ 39.6 $ 41.6 $ 42.1 Non-core (gains), losses and expenses Non-core (gains) losses Gain on transfer of Visa Inc. Class B shares — — (0.9) — — Total non-core (g
Slide 23: Non-GAAP Reconciliation (cont'd)
Appendix Non-GAAP Reconciliation (cont'd) (in millions of US Dollars, unless otherwise indicated) 2021 2020 Q4 Q3 Q2 Q1 Q4 Tangible equity to tangible assets Shareholders' equity K $ 977.5 $ 973.9 $ 966.6 $ 936.5 $ 981.9 Less: goodwill and intangible assets (86.1) (87.3) (90.2) (91.5) (92.8) Tangibl
Slide 24: Commentary on Factors Influencing COVID-19 Implications
Appendix Commentary on Factors Influencing COVID-19 Implications The continuing implications of the pandemic on our business, financial condition, liquidity and results of operations will depend on factors such as, but not limited to, the following: • The duration and scope of the pandemic • The eff
Slide 25: Peer Group
Appendix Peer Group Our peer group includes the following banks, noted by their ticker symbols: • First Republic Bank (FRC) • First Hawaiian, Inc. (FHB) • SVB Financial Group (SIVB) • Bank of Hawaii Corporation (BOH) • East West Bancorp, Inc. (EWBC) • Trustmark Corporation (TRMK) • Cullen/Frost Bank
The Bank of N.T. Butterfield & Son — Q4 2021 Earnings Presentation on 6ix