BANK OF N.T. BUTTERFIELD & SON LTD (NTB) Tops Q2 EPS by 15c

BANK OF N.T. BUTTERFIELD & SON LTD (NYSE: NTB) reported Q2 EPS of $0.67, $0.15 better than the analyst estimate of $0.52.

Financial highlights for the second quarter of 2020:

• Net income of $34.3 million, or $0.67 per share and core net income1 of $34.4 million, or $0.67 per share
• Return on average common equity of 14.0% and core return on average tangible common equity1 of 15.5%
• Net interest margin of 2.48%
• Credit reserve build of $4.4 million
• Board declares a quarterly dividend of $0.44 per share
• Issued $100 million 5.25% 10-year fixed to floating rate subordinated debt

Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, "The Bank recorded solid earnings this quarter, as we continued to meet the challenges presented by the COVID-19 pandemic. During the temporary government-mandated closures in our home markets, we were able to provide essential banking services to our customers both in person and electronically. I am proud that Butterfield was able to help support local economies and offer relief to borrowers in Bermuda and Cayman through loan deferrals and other community based support programs. We continue to be in regular communication with customers and are closely monitoring our loan book for signs of credit deterioration, and we have seen a slight increase in non-performing loans this quarter. Our latest credit performance estimate is reflected in the second quarter reserve build, bringing our total credit reserves to 79 basis points of total loans. I am also pleased to confirm that the Bank's balance sheet and capital ratios improved and remain strong.

"We have also started adjusting to the potential long-term implications of the changing economic landscape, and the associated extended period of low interest rates. As we work to further mitigate the impact of lower yields, we anticipate a greater emphasis on our stable fee businesses and focus on costs to improve operating efficiencies. Through this period of increased uncertainty, Butterfield remains well positioned for continued profitability and growth."

For earnings history and earnings-related data on BANK OF N.T. BUTTERFIELD & SON LTD (NTB) click here.

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