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 — Q1 2018 Earnings Presentation
21 slides from Bank Of N.t. Butterfield & Son Limited (the) Voting's earnings presentation, Apr 24, 2018
Slide 1: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation The Bank of N.T. Butterfield & Son Limited April 24, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements: Certain of the statements made in this presentation are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Slide 3: First Quarter 2018 Earnings Presentation
First Quarter 2018 Earnings Presentation Presenters Agenda Butterfield Overview Michael Collins • Overview • Leading Bank in Attractive Markets Chairman and Chief Executive Officer • Financials • Strong Capital Generation and Return Michael Schrum • Summary • Efficient, Conservative Balance Sheet Ch
Slide 4: First Quarter 2018 Highlights
First Quarter 2018 Highlights Core Net Income** • Net income of $44.2 million, or $0.79 per share • Core Net Income** of $45.0 million, or $0.81 per share $45.0 • Return on average common equity of 21.8%; core return on $42.2 average tangible common equity** of 24.3% $40.7 $38.5 $37.5 • Net Interest
Slide 5: Financials
Financials
Slide 6: Income Statement Net Interest Income
Income Statement Net Interest Income Net Interest Margin & Yields Net Interest Income before Provision for Credit Losses - Trend Q1 2018 vs. Q4 2017 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $ 2,173.8 0.94 % $ 38.0 0.08% $79.9 Investments 4,574.6 2.54 % (63.5) 0.27% Loans (net) 3,
Slide 7: Income Statement Non-Interest Income
Income Statement Non-Interest Income Non-Interest Income Trend vs. Q4 2017 $42.4 $39.8 Q1 2018 $ % $38.5 Asset management $ 6.4 $ (0.2) Banking 10.9 (1.1) FX Revenue 8.2 (0.6) Trust 10.9 (0.5) Custody and Other 2.2 0.1 Other 1.2 (0.2) Q1 Q2 Q3 Q4 Q1 Total Non-Interest Income $ 39.8 $ (2.6) (6.1)% 20
Slide 8: Income Statement Non-Interest Expenses
Income Statement Non-Interest Expenses Non-Interest Expense Trend *** Core Non-Interest Expenses* vs. Q4 2017 Q1 2018 $ % Salaries & Benefits** $ 37.0 $ (5.3) 0.3 % $80.8 $77.8 Technology & Comm. 14.6 0.3 (1.5)% $71.2 Property 5.1 0.6 (3.8)% Professional & O/S Services 8.1 1.4 (1.8)% 63.2% Indirect
Slide 9: Capital Requirements and Return
Capital Requirements and Return Regulatory Capital (Basel III) - Leverage Capital Total Capital Ratio 9.0% 19.2% 8.1% 0.5% 1.4% 8.5% 15.5% 6.7% 14.1% Butterfield - Current US Peer Median * Butterfield Current BMA 2017 Required US Peer Average * TCE/TA TCE/TA Ex Cash • Active capital management remai
Slide 10: Balance Sheet
Balance Sheet Total Assets Q1 2018 Q4 2017 Cash & Equivalents $ 1,846 $ 1,535 $10.9 $10.8 $11.0 S/T Inv. & Reverse Repos 298 429 Loans (net) 3,957 3,777 Investments 4,512 4,706 Other Assets 376 332 $4.5 $4.7 $4.5 Total Assets $ 10,988 $ 10,779 $3.6 $3.8 $4.0 Int. Bearing Deposits $ 7,508 $ 7,056 Non
Slide 11: Asset Quality
Asset Quality Loan Distribution Non-Accrual Loans Gov’t: 4.8% Other Comm’l: 12.0% $50.1 $4.0 billion Res Mtg: 63.7% $43.9 Comm’l R/E: 14.8% $42.4 Consumer: 4.7% Q1 Q2 Q3 Q4 Q1 2017 2018 Non-Accrual Loans Investment Portfolio Rating Distribution Net Charge-Off Ratio 0.10% 0.08% BBB: 1.2% A: 2.9% 0.06
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity Average Balance - Balance Sheet Interest Rate Sensitivity Average Balances ($bn) 8.9% Q1 2018 vs. Q4 2017 Duration vs. Q4 2017 4.4% 5.2% 3.2% Cash 1,966.5 30.3 N/A N/A S/T Invest. 207.3 7.8 0.1 (0.1) (4.8)% AFS 3,121.5 (204.5) 2.8 0.5 (11.4)% HTM 1,452.0 141.3 6.1 0.5 -100b
Slide 13: Appendix
Appendix
Slide 14: Balance Sheet Trends
Appendix Balance Sheet Trends 2018 2017 2016 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Assets Cash & Equivalents $ 1,846 $ 1,535 $ 1,546 $ 1,720 $ 1,867 $ 2,102 $ 1,485 $ 2,655 $ 1,774 Reverse Repos 198 179 210 184 63 149 186 — — S/T Investments 100 250 208 294 542 520 995 436 425 Investments 4,512 4,706 4,613 4,5
Slide 15: Average Balance Sheet Trends
Appendix Average Balance Sheet Trends 2018 - Q1 2017 - Q4 2017 - Q1 Average Interest Average rate Average Interest Average rate Average Interest Average rate Assets balance ($) ($) (%) balance ($) ($) (%) balance ($) ($) (%) Cash due from banks, reverse repurchase agreements and short-term investmen
Slide 16: Income Statement Trends
Appendix Income Statement Trends 2018 2017 2016 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Income $ 79.9 $ 76.1 $ 74.3 $ 71.5 $ 67.9 $ 66.8 $ 65.0 $ 64.3 $ 62.3 Non-Interest Income 39.8 42.4 38.2 38.7 38.5 38.8 36.3 37.9 34.5 Prov. for Credit Recovery (Losses) 1.9 5.4 0.7 (0.5) 0.3 0.9 (0.3) (5.3) 0.3
Slide 17: Non-Interest Income & Expense Trends
Appendix Non-Interest Income & Expense Trends 2018 2017 2016 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Non-Interest Income Trust $ 10.9 $ 11.3 $ 10.9 $ 11.3 $ 11.4 $ 11.5 $ 11.6 $ 10.8 $ 10.1 Asset Management 6.4 6.6 6.3 5.9 5.8 6.0 5.6 5.3 4.2 Banking 10.9 12.0 10.8 10.9 10.0 11.0 9.7 10.0 8.7 FX Revenue 8.2 8.8
Slide 18: Core Non-Interest Expense Trends
Appendix Core Non-Interest Expense Trends 2018 2017 2016 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Salaries & Benefits* $ 37.0 $ 42.2 $ 37.2 $ 37.1 $ 35.9 $ 34.0 $ 33.6 $ 31.5 $ 29.6 Technology & Comm. 14.6 14.3 13.1 13.3 12.8 14.4 14.2 13.8 13.9 Property 5.1 4.5 5.1 5.3 4.9 5.5 5.3 5.0 5.0 Professional & O/S Serv
Slide 19: Non-GAAP Reconciliation
Appendix Non-GAAP Reconciliation (in millions of US Dollars, unless otherwise indicated) 2018 2017 Q1 Q4 Q3 Q2 Q1 Net income A $ 44.2 $ 40.3 $ 41.1 $ 36.1 $ 35.9 Dividends and guarantee fee of preference shares — — — — — Premium paid on repurchase of preference shares B — — — — — Net income to commo
Slide 20: Non-GAAP Reconciliation (cont'd)
Appendix Non-GAAP Reconciliation (cont’d) (in millions of US Dollars, unless otherwise indicated) 2018 2017 Q1 Q4 Q3 Q2 Q1 Core return on average tangible assets Total average assets L $ 10,970.9 $ 10,851.0 $ 10,744.8 $ 10,981.8 $ 10,982.6 Less: average goodwill and intangible assets (68.4) (60.9) (
Slide 21: Peer Group
Appendix Peer Group Our peer group includes the following banks, noted by their ticker symbols: • FRC • SIVB • EWBC • CFR • ASB • WTFC • CBSH • IBKC • UMBF • FHB • BOH • TRMK • IBOC • CBU • BPFH • FFIN • WABC 21
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