- Butterfield (NTB, Financial) reported a net income of $53.8 million for Q1 2025, or $1.23 per diluted share.
- Net interest margin increased to 2.70% driven by a positive shift in deposit mix and higher investment yields.
- The Bank declared a quarterly dividend of $0.44 per share, maintaining its stable capital return policy.
The Bank of N.T. Butterfield & Son Limited, known as Butterfield (NYSE: NTB), has released its financial results for the first quarter of 2025. The Bank reported a net income of $53.8 million, translating to $1.23 per diluted common share, down from the previous quarter's figure of $59.6 million or $1.34 per diluted share, but slightly up from $53.4 million or $1.13 per share in the first quarter of 2024.
Core net income for the period reached $56.7 million or $1.30 per share. The return on average common equity stood at 20.9%, with a core return on average tangible common equity of 24.2%.
Butterfield's net interest income increased to $89.3 million, $0.7 million higher than the last quarter, largely influenced by lower deposit costs and higher yields on investments. The net interest margin rose to 2.70% from the previous quarter's 2.61% and compared to 2.68% a year earlier.
Non-interest income totaled $58.4 million, down $4.8 million from the previous quarter but up $3.3 million compared to Q1 2024, led by higher foreign exchange volume and increased asset management fees.
Non-interest expenses increased to $93.2 million, boosted by costs associated with a group-wide voluntary early retirement program, while the core efficiency ratio improved to 59.8% from the prior quarter’s 58.2%.
The Bank's total assets at the end of Q1 2025 were $14.0 billion, a slight decrease from $14.2 billion at year-end 2024. Deposits saw a marginal decline to $12.6 billion. Butterfield's capital ratios remained robust, with a total regulatory capital ratio of 27.7%.
The Board declared a dividend of $0.44 per share payable on May 21, 2025, maintaining its commitment to returning capital to shareholders. Butterfield also repurchased 1.1 million common shares during the quarter at an average price of $37.78 per share.
