Bank Of N.t. Butterfield & Son Limited (the) Voting · NYSE:NTB
Bank Of N.t. Butterfield & Son Limited (the) Voting — Bank of N.T. Butterfield & Son Limited (The) — Q4 2024 Earnings Presentation
26 slides from Bank Of N.t. Butterfield & Son Limited (the) Voting's earnings presentation, Feb 11, 2025
Slide 1: Fourth Quarter and Year-End 2024 Earnings Presentation
Fourth Quarter and Year-End 2024 The Bank of N.T. Butterfield & Son Limited Earnings Presentation February 11, 2025
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 2024 Highlights • Strong Capital Generation and Return Craig Bridgewater • Fourth Quarter 2024 Financials • Resilient, Capital E
Slide 4: Financials
Financials
Slide 5: Full Year 2024 Highlights
Full Year 2024 Highlights • Net income of $216.3 million, or $4.71 per share (In US$ millions) vs 2023 • Core net income** of $218.9 million, or $4.77 per share 2024 $ % • Return on average common equity of 21.4%; core return on Net Interest Income $ 351.2 $ (15.8) average tangible common equity** o
Slide 6: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights • Net income and core net income**of $59.6 million, or $1.34 (In US$ millions) vs. Q3 2024 vs. Q4 2023 per share Q4 2024 $ % $ % • Return on average common equity of 22.9%; core return on Net Interest Income $ 88.6 $ 0.6 $ 1.7 average tangible common equity** of 25.2%
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) Q4 2024 vs. Q3 2024 (In US$ millions) Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $ 3,441.1 4.25 % $ (131.7) (0.41)% $88.1 $88.6 $86.9 In
Slide 8: Income Statement: Non-Interest Income
Income Statement Non-Interest Income Non-Interest Income Trend (In US$ millions) (In US$ millions) Q4 2024 vs. Q3 2024 $63.2 $60.0 Asset management $ 9.1 $ (0.3) $56.0 Banking 21.2 6.8 Foreign exchange revenue 13.2 1.0 Trust 15.1 (0.7) Custody and other 3.6 0.2 Other 0.9 0.2 Total Non-Interest Incom
Slide 9: Income Statement: Non-Interest Expenses
Income Statement Non-Interest Expenses Core Non-Interest Expense* Trend Core Non-Interest Expenses* vs. Q3 2024 (In US$ millions) (In US$ millions) Q4 2024 $ % $90.4 $88.6 $90.6 Salaries & Benefits** $ 44.7 $ — —% Technology & Comm. 16.6 0.1 0.8 % Professional & O/S Services 5.7 1.0 20.3 % Property
Slide 10: Balance Sheet
Balance Sheet Total Assets vs Q4 2023 (In US$ millions) Q4 2024 Q4 2023 % (In US$ billions) Cash and cash equivalents $ 1,998 $ 1,647 21 % $14.4 $14.2 Reverse Repos & S/T Investments 1,785 1,225 46 % $13.4 Investments 5,513 5,292 4% Loans (net) 4,474 4,746 (6)% Other Assets 462 464 —% Total Assets $
Slide 11: Asset Quality
Asset Quality Non-Accrual Loans Investment Portfolio (In US$ millions) $89.6 Loan Distribution Rating Distribution $76.7 AAA 0.3% Consumer 4.3% $61.0 Res Mtg 67.8% Comm’l R/E 14.3% Other Comm’l 7.7% AA 99.7% Government 5.9% $4.5 $5.5 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 billion billion 0.20% • 68
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity Average Balance - Balance Sheet Interest Rate Sensitivity Average Balances (US$Mil) Weighted 6.0% Average Life 3.0% Q4 2024 vs. Q3 2024 Duration vs. Q3 2024 2.8% 1.4% Cash & Reverse Repos & S/T Invest. $ 3,441.1 $ (131.7) 0.1 — N/A AFS 2,173.0 265.7 3.4 — 4.3 (1.2)% HTM** 3
Slide 13: Capital Requirements and Dividend Return
Capital Requirements and Dividend Return Regulatory Capital (Basel III) - Total Capital Ratio* Leverage Capital 11.0% 0.6% 25.8% 7.7% 1.1% 10.4% 6.6% 15.1% 13.5% Butterfield - Current US Peer Median** Butterfield Current BMA Minimum US Peer Median** TCE/TA TCE/TA Ex Cash Dividend Payout Ratio • Regu
Slide 14: Appendix
Appendix
Slide 15: Deposit Composition by Segment
Deposit Composition by Segment Group (US$ Billions) Bermuda (US$ Billions) $12.0 $12.1 $12.5 $12.7 $12.7 $4.5 $4.5 $4.6 $4.6 $4.8 31% 33% 33% 34% 35% 22% 22% 21% 19% 26% 42% 43% 45% 46% 40% 47% 46% 47% 44% 47% 36% 35% 34% 34% 33% 22% 21% 20% 19% 21% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1
Slide 16: Loans
Loans Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billions) $3.4 $3.6 $3.6 $3.3 $3.1 $1.6 $1.4 $1.4 $1.3 $1.3 49% 50% 49% 49% 50% 49% 48% 46% 48% 46% 18% 21% 23% 22% 21% 18% 18% 21% 22% 22% 32% 5% 7% 9% 10% 29% 29% 29% 28% 9% 29% 26% 24% 23% 21% 2020 2021 2022 2023 2024 2020 2021
Slide 17: Balance Sheet Movements
Balance Sheet Movements Deposit Movements (US$ millions) Deposit Composition by Currency (US$ billions) FX $12.0 $12.7 $12.7 Volume Translation 6% 8% 7% 19% 21% 21% Change vs Q3 +225 -215 $10 2024 75% 72% 72% Change vs Q4 +825 -65 $760 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 USD / USD Pegged GB
Slide 18: Balance Sheet Asset Mix
Balance Sheet Asset Mix Liquidity: Cash & Cash Equivalents** to Total Assets Loan-to-Deposit Ratio 69% 71% 70% 68% 40% 38% 27% 27% 37% 37% 35% 26% 24% 21% 4% 4% 4% 5% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 NTB US Peer Median* NTB US Peer Median* • Butterfield
Slide 19: Balance Sheet Trends
Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Assets Cash and cash equivalents $ 1,998 $ 2,067 $ 2,390 $ 1,746 $ 1,647 $ 1,750 $ 1,795 $ 1,345 $ 2,101 Reverse Repos & S/T Investments 1,785 1,750 1,289 1,480 1,225 893 729 1,263
Slide 20: Average Balance Sheet Trends
Average Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) Q4 2024 Q3 2024 Q4 2023 Average Interest Average rate Average Interest Average rate Average Interest Average rate Assets balance ($) ($) (%) balance ($) ($) (%) balance ($) ($) (%) Cash and cash equivalents, reverse
Slide 21: Income Statement Trends
Income Statement Trends (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Net Interest Income $ 88.6 $ 88.1 $ 87.4 $ 87.1 $ 86.9 $ 90.2 $ 92.5 $ 97.4 $ 94.6 Non-Interest Income 63.2 56.0 55.6 55.1 60.0 52.0 50.2 50.2 54.9 Prov. for Credit (Losses) Reco
Slide 22: Non-Interest Income & Expense Trends
Non-Interest Income & Expense Trends (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Non-Interest Income Asset Management $ 9.1 $ 9.5 $ 8.9 $ 8.8 $ 8.3 $ 8.0 $ 8.2 $ 7.9 $ 7.4 Banking 21.2 14.4 13.8 14.3 18.6 14.1 12.6 13.6 17.5 FX Revenue 13.2 12.2
Slide 23: Core Non-Interest Expense Trends
Core Non-Interest Expense* Trends (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Salaries & Benefits* $ 44.7 $ 44.7 $ 44.7 $ 42.5 $ 46.2 $ 43.4 $ 42.6 $ 43.7 $ 44.7 Technology & Comm. 16.6 16.5 16.9 16.1 17.2 16.0 14.9 13.9 14.3 Professional & O/S S
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation (in millions of US Dollars, unless otherwise indicated) 2024 2023 Q4 Q3 Q2 Q1 Q4 Net income A $ 59.6 $ 52.7 $ 50.6 $ 53.4 $ 53.5 Non-core (gains), losses and expenses Non-core expenses Early retirement program, voluntary separation, redundancies and other non-core compensatio
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) (in millions of US Dollars, unless otherwise indicated) 2024 2023 Q4 Q3 Q2 Q1 Q4 Tangible equity to tangible assets Shareholders' equity K $ 1,020.8 $ 1,064.2 $ 999.1 $ 995.1 $ 1,003.6 Less: goodwill and intangible assets (89.6) (96.7) (94.4) (96.3) (98.9) Tangibl
Slide 26: Peer Group
Peer Group Our peer group includes the following banks, noted by their ticker symbols: • First Hawaiian, Inc. (FHB) • Trustmark Corporation (TRMK) • Bank of Hawaii Corporation (BOH) • International Bancshares Corporation (IBOC) • East West Bancorp, Inc. (EWBC) • Community Financial System, Inc. (CBU
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