The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 10:00 am ET


The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, my name is Eislee, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Year-End 2019 Earnings Call for the Bank of N.T. Butterfield & Son Limited. All participants will be in listen-only mode. [Operator Instructions].

I would now like to turn the conference over to Noah Fields, Butterfield's Head of Investor Relations. Please go ahead.

Noah Fields

Thank you. Good morning everyone and thank you for joining us. Today, we will be reviewing Butterfield's fourth quarter and full year 2019 financial results. On the call, I'm joined by Butterfield's Chairman and Chief Executive Officer, Michael Collins; and Chief Financial Officer, Michael Schrum. Following their prepared remarks, we will open up the call for a question-and-answer session.

Yesterday afternoon, we issued a press release announcing our fourth quarter and full year 2019 results. The press release along with a slide presentation that we will refer to during our remarks on this call, are available on the Investor Relations section of our website at

Before I turn the call over to Michael Collins, I would like to remind everyone that today's discussions will refer to certain non-GAAP measures, which we believe are important in evaluating the company's performance. For a reconciliation of these measures to U.S. GAAP, please refer to the earnings press release and slide presentation.

Today's call and associated materials may also contain certain forward-looking statements, which are subject to risks, uncertainties and other factors, that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these risks can be found in our SEC filings.

I will now turn the call over to Michael Collins.

Michael Collins

Thank you, Noah, and thanks to everyone joining the call today. I'm very pleased with the Bank's achievements in 2019 and the strides we have taken towards being the leading independent offshore Bank and Trust Company. During the past year, we successfully pursued our acquisition growth strategy, that is focused on our established footprint in key jurisdictions, which include Bermuda, the Cayman Islands and the Channel Islands. In addition, we have a well established high net worth lending business in the U.K., primarily focused on Central London. We support these businesses with lower cost service centers in Canada and Mauritius, which provide us with ongoing expense leverage, and expanded talent pool, and as we continue to move forward the client service proposition.

I wanted to acknowledge the resilience of our Cayman team and infrastructure. Two weeks ago, there was a magnitude 7.7 earthquake very close to Cayman. While serious, I am thankful to say that there were no serious injuries. and minimal damage. Within 24 hours, we are back to business as usual, due to our strong business resilient framework.

Turning now to slide 4; Butterfield reported strong annual net income of $177.1 million and record core operating income of $197.9 million. These earnings translate to annual core return on average tangible common equity of 23.4%.