Bank of NT Butterfield & Son Reports Q1 2024 Net Income of $53.4 Million

Bank of NT Butterfield & Son Ltd reported net income of $53.4 million, or $1.13 per diluted common share, for the first quarter of 2024.

This compares to net income of $53.5 million in the previous quarter. The company's core earnings per share were $1.17, with a core return on average tangible common equity of 24.5%.

The bank's net interest margin decreased by 5 basis points to 2.68% in Q1 2024, primarily due to a rise in the cost of deposits, which increased to 178 basis points from 172 basis points in the prior quarter. Despite this, the company continued its share repurchase program, buying back 1.2 million shares at an average price of $30.40 per share during the quarter.

Analysts remain optimistic about Bank of NT Butterfield & Son Ltd. Piper Sandler analyst Alexander Twerdahl maintained a Buy rating on the stock with a price target of $34.00, while KBW also assigned a Buy rating with a $40.00 price target. The company's stock has a 52-week trading range of $21.49 to $33.31, with an average volume of 212,200 shares.

Why this matters: Bank of NT Butterfield & Son's Q1 2024 results provide insight into the financial health and performance of a significant player in the banking industry. The company's ability to maintain strong core earnings and pursue share repurchases despite challenges such as rising deposit costs highlights its resilience and strategic management.

In other news, the Bank of NT Butterfield & Son Ltd announced the appointment of Simon Des Etages as its new General Counsel and Group Chief Legal Officer. Des Etages brings over 30 years of legal experience in the banking sector to his new role. "Simon's extensive experience and expertise in banking law will be invaluable as we navigate the evolving legal and regulatory landscape," said Michael Collins, Chairman and CEO of Bank of NT Butterfield & Son Ltd.

Key Takeaways

• Bank of NT Butterfield reported Q1 2024 net income of $53.4M, or $1.13 per share.
• Core earnings per share were $1.17, with a core return on equity of 24.5%.
• Net interest margin decreased 5 bps to 2.68% due to higher deposit costs.
• Analysts maintain Buy ratings with price targets of $34 and $40 on the stock.
• Bank appointed Simon Des Etages as new General Counsel and Chief Legal Officer.