Bank of N.T. Butterfield & Son Ltd
For the period ended Dec 31, 2024. Filed Feb 19, 2025.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2024 · Filed Feb 19, 2025
Contents
E. Selected Statistical Data
The following tables present select statistical information as required by subpart 1400 of Regulation S-K.
Distribution of Assets, Liabilities and Shareholders' Equity; Interest Rates and Interest Differential
Average Balance Sheet and Interest Rates
The following table presents average consolidated balance sheets and net interest income for the years indicated:
| 2024 · 2023 · 2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in millions of $) · Averagebalance · Interestincome(expense) · Averageyield/rate · Averagebalance · Interestincome(expense) · Averageyield/rate · Averagebalance · Interestincome(expense) · Averageyield/rate | ||||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents — Interest bearing | 2,027.6 | 86.6 | 4.26% | 1,704.1 | 67.3 | 3.95% | 1,903.9 | 19.8 | 1.04% | |||||
| Securities purchased under agreements to resell | 546.0 | 27.5 | 5.03% | 81.7 | 4.6 | 5.62% | 118.2 | 2.5 | 2.12% | |||||
| Short-term investments | 831.6 | 42.9 | 5.14% | 862.9 | 40.3 | 4.67% | 1,110.6 | 10.9 | 0.98% | |||||
| Available-for-sale | 1,910.9 | 48.9 | 2.55% | 1,925.3 | 35.6 | 1.85% | 2,581.8 | 38.9 | 1.51% | |||||
| Held-to-maturity | 3,357.4 | 75.6 | 2.25% | 3,604.8 | 80.5 | 2.23% | 3,476.3 | 76.9 | 2.21% | |||||
| Investment in securities(1) | 5,268.3 | 124.5 | 2.36% | 5,530.1 | 116.1 | 2.10% | 6,058.1 | 115.8 | 1.91% | |||||
| Commercial loans | 1,336.3 | 88.3 | 6.59% | 1,393.9 | 93.1 | 6.68% | 1,477.5 | 76.7 | 5.19% | |||||
| Consumer loans | 3,276.6 | 215.8 | 6.57% | 3,519.8 | 224.2 | 6.37% | 3,616.0 | 172.7 | 4.78% | |||||
| Total loans, net of allowance for credit losses(2) | 4,612.9 | 304.1 | 6.57% | 4,913.7 | 317.4 | 6.46% | 5,093.5 | 249.4 | 4.90% | |||||
| Interest-earning assets | 13,286.4 | 585.7 | 4.40% | 13,092.5 | 545.6 | 4.17% | 14,284.3 | 398.4 | 2.79% | |||||
| Other assets | 423.5 | 409.1 | 370.3 | |||||||||||
| Total assets | 13,709.9 | 13,501.5 | 14,654.6 | |||||||||||
| Liabilities | ||||||||||||||
| Deposits | 9,785.9 | (227.0) | (2.31)% | 9,410.9 | (170.5) | (1.81)% | 10,269.1 | (45.2) | (0.44)% | |||||
| Securities sold under agreements to repurchase | 46.8 | (2.0) | (4.32)% | 1.4 | (0.1) | (5.59)% | 0.6 | — | (3.95)% | |||||
| Long-term debt | 98.6 | (5.5) | (5.55)% | 129.2 | (8.1) | (6.26)% | 172.1 | (9.6) | (5.58)% | |||||
| Interest bearing liabilities | 9,931.3 | (234.5) | (2.35)% | 9,541.4 | (178.7) | (1.87)% | 10,441.8 | (54.8) | (0.52)% | |||||
| Non-interest bearing current accounts | 2,577.9 | 2,803.6 | 3,033.3 | |||||||||||
| Other liabilities | 247.2 | 248.2 | 284.3 | |||||||||||
| Total liabilities | 12,756.4 | 12,593.2 | 13,759.3 | |||||||||||
| Shareholders' equity | 953.5 | 908.3 | 895.3 | |||||||||||
| Total liabilities and shareholders' equity | 13,709.9 | 13,501.5 | 14,654.6 | |||||||||||
| Non-interest bearing funds net of non-interest-earning assets (free balance) | 3,355.1 | 3,551.1 | 3,842.5 | |||||||||||
| Net interest margin | 351.2 | 2.64% | 367.0 | 2.80% | 343.6 | 2.41% | ||||||||
| Net interest spread | 2.62% | 2.32% | ||||||||||||
| Ratio of average interest earning asset/ interest bearing liabilities | 133.8% | 137.2% | 136.8% | |||||||||||
(2)Interest income and rates on loans include loan fees (2024: $5.1 million; 2023: $5.1 million and 2022: $6.3 million). Additionally, average non-accrual loans were included in the average loan balances used to determine the average yield on loans in all of the periods presented. Interest income on non-accrual loans is recognized only to the extent it is received in cash. See "Note 2: Significant accounting policies" of our audited consolidated financial statements for further information.
Analysis of Changes in Volume and Rate on Interest Income and Interest Expense
The following table presents the amount of changes in interest income and interest expense from December 31, 2023 to December 31, 2024 and from December 31, 2022 to December 31, 2023, due to changes in both average volume and average rate. Changes not solely due to volume or rate have been allocated to volume.
| 2024 compared to 2023 · 2023 compared to 2022 | ||||||
|---|---|---|---|---|---|---|
| (in millions of $) · Increase/(Decrease)due toChanges in · NetIncrease/(Decrease) · Increase/(Decrease)due toChanges in · NetIncrease/(Decrease) | ||||||
| Volume · Rate · Volume · Rate | ||||||
| Interest income related to: | ||||||
| Cash and cash equivalents — Interest bearing | 14.02 | 5.36 | 19.38 | (7.82) | 55.32 | 47.50 |
| Securities purchased under agreements to resell | 23.43 | (0.48) | 22.95 | (2.03) | 4.13 | 2.10 |
| Short-term investments | (1.49) | 4.09 | 2.60 | (11.60) | 41.00 | 29.40 |
| Available-for-sale | (0.23) | 13.53 | 13.30 | (12.09) | 8.79 | (3.30) |
| Held-to-maturity | (5.35) | 0.46 | (4.89) | 2.79 | 0.81 | 3.60 |
| Total investment in securities(1) | (5.58) | 13.99 | 8.41 | (9.30) | 9.60 | 0.30 |
| Commercial loans | (3.56) | (1.30) | (4.86) | (5.61) | 22.01 | 16.40 |
| Consumer loans | (15.38) | 6.99 | (8.39) | (6.18) | 57.68 | 51.50 |
| Total loans, net of allowance for credit losses(2) | (18.94) | 5.69 | (13.25) | (11.79) | 79.69 | 67.90 |
| Total interest-earning assets | 11.44 | 28.65 | 40.09 | (42.54) | 189.74 | 147.20 |
| Interest expenses related to: | ||||||
| Deposits | (9.30) | (47.20) | (56.50) | 15.59 | (140.89) | (125.30) |
| Securities sold under agreements to repurchase | (1.97) | 0.02 | (1.95) | — | — | — |
| Long-term debt | 1.68 | 0.93 | 2.61 | 2.68 | (1.18) | 1.50 |
| Total interest bearing liabilities | (9.59) | (46.25) | (55.84) | 18.27 | (142.07) | (123.80) |
| Change in net interest income | 1.85 | (17.60) | (15.75) | (24.27) | 47.67 | 23.40 |
(2)Interest income and rates on loans include loan fees (2024: $5.1 million; 2023: $5.1 million and 2022: $6.3 million). Additionally, average non-accrual loans were included in the average loan balances used to determine the average yield on loans in all of the periods presented.
Investment Portfolio
The following table presents an analysis of the weighted average yields for interest bearing debt securities as at December 31, 2024:
| Remaining term to maturity | ||||||
|---|---|---|---|---|---|---|
| Within1 year | 1 to 5years | After 5 through 10years | After 10years | No specific or singlematurity | Total | |
| Available-for-sale (measured at fair value) | ||||||
| US government and federal agencies | 4.6% | 2.4% | —% | —% | 3.5% | 3.0% |
| Non-US governments debt securities | 0.6% | —% | —% | —% | —% | 0.6% |
| Asset-backed securities - Student loans | 0.0 | —% | —% | —% | 1.7% | 1.7% |
| Residential mortgage-backed securities | —% | —% | —% | —% | 3.2% | 3.2% |
| Weighted average yield(1) | 1.1% | 2.4% | —% | —% | 3.5% | 2.9% |
| Held-to-maturity (measured at amortized cost) | ||||||
| US government and federal agencies | —% | —% | —% | —% | 2.5% | 2.5% |
| Weighted average yield(1) | —% | —% | —% | —% | 2.5% | 2.5% |
| Total Weighted average yield(1) | 1.1% | 2.4% | —% | —% | 2.8% | 2.7% |
Loan Portfolio
Maturity Profile of the Loan Portfolio
The following table presents certain items in our loan portfolio by contractual maturity as at December 31, 2024:
| Remaining term to average contractual maturity | ||||||
|---|---|---|---|---|---|---|
| (in millions of $) | Within1 year | 1 to 5years | After 5years through 15 years | After 15 years | No specific maturity(1) | Total |
| Commercial loans | ||||||
| Government | 30.1 | 6.2 | 230.0 | — | — | 266.3 |
| Commercial and industrial | 61.8 | 151.3 | 18.8 | 1.6 | — | 233.5 |
| Commercial overdrafts | 117.5 | — | — | — | — | 117.5 |
| Total Commercial loans | 209.4 | 157.5 | 248.8 | 1.6 | — | 617.3 |
| Commercial real estate loans | ||||||
| Commercial mortgage | 38.7 | 190.2 | 356.8 | 7.9 | — | 593.6 |
| Construction | 1.1 | 47.0 | — | 0.3 | — | 48.4 |
| Total Commercial real estate loans | 39.8 | 237.2 | 356.8 | 8.2 | — | 642.0 |
| Consumer loans | ||||||
| Automobile financing | 1.2 | 14.8 | 2.2 | — | — | 18.2 |
| Credit card | 90.7 | — | — | — | — | 90.7 |
| Overdrafts | 37.1 | — | — | — | — | 37.1 |
| Other consumer | 8.4 | 17.0 | 13.1 | 8.2 | — | 46.7 |
| Total Consumer loans | 137.4 | 31.8 | 15.3 | 8.2 | — | 192.7 |
| Total Residential mortgages | 419.7 | 877.5 | 803.7 | 949.9 | — | 3,050.8 |
| Non-interest bearing items without a contractual maturity(1) | — | — | — | — | (3.5) | (3.5) |
| Total | 806.3 | 1,304.0 | 1,424.6 | 967.9 | (3.5) | 4,499.3 |
The following table presents our loan portfolio by maturity and type of interest as at December 31, 2024:
| Remaining term to average contractual maturity | ||||||
|---|---|---|---|---|---|---|
| (in millions of $) | Within1 year | 1 to 5years | After 5years through 15 years | After 15 years | No specific maturity(1) | Total |
| Loans with fixed interest rates: | ||||||
| Commercial loans | 28.9 | 25.1 | 245.9 | — | — | 299.9 |
| Commercial real estate loans | 23.7 | 80.4 | 225.1 | 6.0 | — | 335.2 |
| Consumer loans | 2.8 | 2.2 | 2.9 | 4.1 | — | 12.0 |
| Residential mortgages | 118.7 | 397.7 | 351.0 | 603.4 | — | 1,470.8 |
| Total Loans with fixed interest rates | 174.1 | 505.4 | 824.9 | 613.5 | — | 2,117.9 |
| Loans with floating or adjustable interest rates: | ||||||
| Commercial loans | 180.5 | 132.4 | 2.9 | 1.6 | — | 317.4 |
| Commercial real estate loans | 16.1 | 156.8 | 131.7 | 2.2 | — | 306.8 |
| Consumer loans | 134.6 | 29.6 | 12.4 | 4.1 | — | 180.7 |
| Residential mortgages | 301.0 | 479.8 | 452.7 | 346.5 | — | 1,580.0 |
| Total loans with floating or adjustable interest rates | 632.2 | 798.6 | 599.7 | 354.4 | — | 2,384.9 |
| Non-interest bearing items without a contractual maturity(1) | — | — | — | — | (3.5) | (3.5) |
| Total loans | 806.3 | 1,304.0 | 1,424.6 | 967.9 | (3.5) | 4,499.3 |
(1)Included here are items without a contractual maturity such as deferred loans fees and fair value adjustments.
Credit Ratios
The following table presents our credit ratios for the years indicated:
| (in millions of $) | 2024 | 2023 | 2022 |
|---|---|---|---|
| Allowance for credit losses to total loans outstanding: | |||
| Allowance for credit losses | 25.7 | 25.8 | 25.0 |
| Total loans outstanding | 4,499.3 | 4,771.6 | 5,121.4 |
| 0.6% | 0.5% | 0.5% | |
| Non-accrual loans to total loans outstanding: | |||
| Non-accrual loans | 76.7 | 61.0 | 63.1 |
| Total loans outstanding | 4,499.3 | 4,771.6 | 5,121.4 |
| 1.7% | 1.3% | 1.2% | |
| Allowance for credit losses to non-accrual loans: | |||
| Allowance for credit losses | 25.7 | 25.8 | 25.0 |
| Non-accrual loans | 76.7 | 61.0 | 63.1 |
| 33.5% | 42.2% | 39.6% | |
| Net charge-offs (recoveries) during the period to average loans outstanding: | |||
| Commercial loans | |||
| Net charge-offs (recoveries) during the period | 0.5 | 1.5 | 1.3 |
| Average amount outstanding | 650.5 | 678.7 | 741.4 |
| 0.07% | 0.22% | 0.18% | |
| Commercial real estate loans | |||
| Net charge-offs (recoveries) during the period | 0.4 | 0.0 | 0.0 |
| Average amount outstanding | 603.6 | 608.2 | 647.3 |
| 0.06% | —% | —% | |
| Consumer loans | |||
| Net charge-offs (recoveries) during the period | 0.8 | 0.8 | 1.6 |
| Average amount outstanding | 191.9 | 188.0 | 195.7 |
| 0.40% | 0.43% | 0.80% | |
| Residential Mortgages | |||
| Net charge-offs (recoveries) during the period | 0.3 | 1.5 | 2.7 |
| Average amount outstanding | 3,167.1 | 3,431.1 | 3,514.8 |
| 0.01% | 0.04% | 0.08% | |
| Total loans | |||
| Net charge-offs (recoveries) during the period | 1.9 | 3.8 | 5.5 |
| Average amount outstanding | 4,612.9 | 4,913.7 | 5,093.5 |
| 0.04% | 0.08% | 0.11% | |
Allowance for credit losses to loans outstanding increased to 0.6% in 2024 from 0.5% in 2023, driven by a reduction in loan balances as maturities and prepayments exceeded originations across the residential mortgage portfolios.
Non-accrual loans to total loan outstanding ratio increased to 1.7% in 2024 from 1.3% in 2023 driven by a commercial facility secured by real estate in Bermuda.
Net charge-off (recoveries) ratio decreased from 0.08% in 2023 to 0.04% in 2024 mainly due to a reduction in commercial loan and residential mortgage charge-offs.
Allocation of the Allowance for Credit Losses
| (in millions of $) | Amount | Percent of loans in each category to total loans |
|---|---|---|
| Balance at End of Period Applicable to: | ||
| Commercial | 11.7 | 14% |
| Commercial real estate | 3.3 | 14% |
| Consumer | 3.3 | 4% |
| Residential Mortgage | 7.5 | 68% |
| 25.7 | 100% | |
See "Note 6: Loans" to our audited consolidated financial statements as at December 31, 2024 for the breakdown of allowance for credit losses by each loan category.
The following table presents our deposits by category for the years indicated:
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| (in millions of $) | Averagebalance | Averagerate | Averagebalance | Averagerate | Averagebalance | Averagerate |
| Interest bearing deposits | ||||||
| Bermuda | ||||||
| Demand | 1,926.3 | 0.16% | 1,936.2 | 0.23% | 2,120.7 | (0.01)% |
| Term | 1,019.2 | 3.90% | 771.0 | 3.10% | 658.5 | 0.89% |
| Total Bermuda | 2,945.5 | 2,707.2 | 2,779.2 | |||
| Non-Bermuda | ||||||
| Demand | 3,689.7 | 1.12% | 4,062.8 | 0.80% | 5,308.4 | 0.18% |
| Term | 3,150.8 | 4.37% | 2,640.8 | 4.15% | 2,181.5 | 1.35% |
| Non-Bermuda | 6,840.5 | 6,703.6 | 7,489.9 | |||
| Total interest bearing deposits | 9,786.0 | 9,410.8 | 10,269.1 | |||
| Non-interest bearing demand deposits | ||||||
| Bermuda | 1,619.1 | 1,730.2 | 1,878.8 | |||
| Non-Bermuda | 958.8 | 1,073.4 | 1,154.5 | |||
| Total non-interest bearing deposits | 2,577.9 | 2,803.6 | 3,033.3 | |||
The following table presents the amount of uninsured deposits by reportable segment:
| (in millions of $) | 2024 | 2023 |
|---|---|---|
| Bermuda(1) | 4,781.1 | 4,235.2 |
| Cayman(2) | 3,971.1 | 4,005.1 |
| Channel Islands and the UK(3)(4) | 3,797.7 | 3,456.3 |
| 12,549.9 | 11,696.6 |
(1)The Bermuda Deposit Insurance Scheme covers only BMD deposits up to a maximum of $25,000 per group of depositor relationships. Eligibility is limited to individuals; sole proprietors; partnerships; unincorporated associations; charities; and companies registered in the Register of Small Businesses maintained by the Bermuda Economic Development Corporation.
(2)Cayman Islands currently has no deposit insurance scheme in place.
(3)The Guernsey DCS covers deposits up to a maximum of £50,000 per qualifying claimant which is defined as a natural person; the trustee of a Guernsey Retirement Annuity Trust; the executor or administrator of a deceased person's estate; or a Guernsey-registered charity. The total amount of compensation is capped at £100 million in any 5-year period. Claims exceeding this cap will be reduced pro rata.
(4)The Jersey DCS covers deposits up to a maximum of £50,000 per qualifying depositor per Jersey banking group. Qualifying depositors are defined as private individuals and charities. The total amount of compensation is capped at £100 million in any 5-year period.
The following table presents the amount of uninsured time deposits by reportable segment and time to maturity as at December 31, 2024:
| Remaining term to contractual maturity | |||||
|---|---|---|---|---|---|
| (in millions of $) | Within3 months | 3 to 6months | 6 to 12months | Over 12months | Total |
| Time deposits in excess of insured limit: | |||||
| Bermuda | 36.8 | 24.0 | 39.4 | 30.0 | 130.2 |
| Channel Islands and the UK | 230.2 | 37.3 | 77.9 | 0.7 | 346.1 |
| Total time deposits in excess of insured limit | 267.0 | 61.3 | 117.3 | 30.7 | 476.3 |
| Time deposits in uninsured accounts: | |||||
| Bermuda | 914.2 | 98.4 | 54.1 | 39.3 | 1,106.0 |
| Cayman | 1,020.1 | 105.4 | 43.3 | 9.2 | 1,178.0 |
| Channel Islands and the UK | 1,371.4 | 135.7 | 133.9 | 1.5 | 1,642.5 |
| Total time deposits in uninsured accounts | 3,305.7 | 339.5 | 231.3 | 50.0 | 3,926.5 |
| Total uninsured time deposits | 3,572.7 | 400.8 | 348.6 | 80.7 | 4,402.8 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.