Skip Ribbon Commands
Skip to main content
 
 
 

 Content Editor

 

Butterfield Reports Second Quarter Profit
 
         Second quarter core earnings of $20.2 million, up $8.4 million (71%) year on year
         Core cash return on tangible common equity up 98% to 11.0%
         Net income of $32.9 million after non-core items totalling $12.7 million
         Board declares second interim dividend of $0.01 per Common share 
         Strong capital position with a total capital ratio of 22.6%
Hamilton, Bermuda─30 July 2013: The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the “Bank”) today announced core earnings for the second quarter ended 30 June 2013 of $20.2 million ($0.03 per Share on a fully diluted basis), an improvement of 71% over the $11.8 million earned in the same quarter a year ago.  Net income for the quarter was $32.9 million, including non-core net items of $12.7 million, up $16.7 million compared to net income of $16.2 million in the second quarter of 2012. The core cash return on average tangible common equity doubled to 11.0% in the second quarter of 2013 compared to 5.5% in the second quarter of 2012, reflecting measures taken to achieve strategic goals, particularly expense and capital management initiatives.
 
Year-to-date core earnings for the six months ended 30 June 2013 was $35.5 million ($0.05 per Share on a fully diluted basis), up $9.1 million (34%) from $26.4 million for the six-month period ended 30 June 2012, due primarily to strong expense management. Year-to-date net income increased by $15.3 million for the six months ended 30 June 2013 to $46.2 million, compared to a year-to-date net income of $30.9 million for the six-month period ended 30 June 2012.
 
Brendan McDonagh, Butterfield’s Chairman & Chief Executive Officer, said,  “We are pleased that our strategy to improve shareholder value has doubled the core cash return on tangible common equity to 11.0% for the quarter, up from 5.5% only a year ago.  Against a backdrop of challenging economic environments in our major markets, we achieved this result largely through ongoing expense management initiatives across the organisation. By striving to earn our cost of capital, we will be stronger for our customers, employees and shareholders. To maintain this momentum, the senior management team has agreed to a ten percent reduction in compensation. With a further quarter of solid core earnings behind us, I am pleased to announce that the Board has declared a second interim Common dividend of $0.01 per Share as a means to return value to shareholders whilst maintaining the Bank’s strong capital position.”
 
Financial highlights of the second quarter ended 30 June 2013 (with comparisons to the second quarter of 2012):
         Core earnings of $20.2 million, up 71%
         Net interest margin at 2.62%, down from 2.67%
         Core non-interest expenses improved by $6.7 million or 10%
         Core cash return on average tangible common equity of 11.0%, up from 5.5%
         Core efficiency ratio of 70.7%, improved from 77.7%
 
Brad Rowse, Butterfield’s Chief Financial Officer, said, “Our core earnings improvements were led by strong expense management and a 4.0% increase in average customer deposits. Core non-interest expenses were down more than $6.7 million, or almost 10%, compared to the second quarter last year, owed to a reduction in salaries and benefits costs resulting from headcount reductions, as well as decreased technology and property costs.  The improvement was reflected in a significant year-on-year improvement in our core efficiency ratio which decreased by seven percent to 70.7%.  Higher net interest income, driven by investing the deposit improvement, and lower provisions for credit losses more than offset lower non-interest income.”
 
Under the Bank’s Share Buy-back Programmes, the total Shares acquired or purchased for cancellation during the quarter ended 30 June 2013 amounted to 1.6 million Common Shares to be held as Treasury Shares at an average cost of $1.40 per Share (total cost of $2.3 million), and 10,800 Preference Shares purchased for cancellation at a cost of $13.3 million.
 
The Board cancelled the existing Common Share Buy-back Programme effective 1 April 2013 and implemented a new Programme for the purchase of up to 10 million Common Shares.  During the second quarter of 2013, the Board also implemented a new Preference Share Buy-back Programme to replace the previous Programme (under which the Bank was authorised to purchase for cancellation up to 8,000 Preference Shares), authorising the purchase and cancellation of up to 15,000 Preference Shares in total.
 
 
The Board declared quarterly dividends of $20 per Share on the Bank’s 8% Non-Cumulative Perpetual Voting Preference Shares, to be paid on 17 September 2013 to Preference Shareholders of record on 1 September 2013. 
 
 
The Board also declared a second interim Common dividend of $0.01 per Common and Contingent Value Convertible Preference Share to be paid on 23 August 2013 to shareholders of record on 9 August 2013.
 
ANALYSIS AND DISCUSSION OF THE SECOND QUARTER RESULTS
 
 
Balance Sheet
 
As at
(in $ millions)
 
30-June-13
31-Dec-12
Cash and cash equivalents
 
1,686.8
             1,542.5
Investments and short-term investments
 
2,835.2
             2,957.9
Loans, net of allowance for credit losses
 
4,103.3
             3,956.0
Premises, equipment and computer software
 
239.4
                243.3
Other assets
 
132.0
                133.3
Total assets
 
8,996.7
            8,833.0
Total deposits
 
7,650.0
             7,393.2
Subordinated capital
 
207.0
                260.0
Other liabilities
 
354.6
                322.6
Total Liabilities
 
8,211.6
            7,975.8
Liquidation preference of Preference Shares
 
184.6
                195.6
Common equity
 
600.4
                661.6
Shareholders' equity
 
785.0
                857.2
 
 
 
 
 
As at
 
Key Balance Sheet Ratios:
 
 
 
30-June-13
31-Dec-12
 
Tangible book value per Share
 
 
 
$1.06
$1.16
 
Tier 1 capital ratio
 
 
 
18.38%
18.53%
 
Total capital ratio
 
 
 
22.59%
24.18%
 
Tangible common equity ratio
 
 
 
6.47%
7.26%
 
Tangible total equity ratio
 
 
 
8.53%
9.48%
 
Non-accrual loans/gross loans
 
 
 
2.65%
2.83%
 
Non-performing assets/total assets
 
 
 
1.33%
1.37%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Statement
 
Three Months ended 30 June
            Six Months ended 30 June
 
 
(in $ millions)
 
2013
2012
2013
2012
 
Non-interest income
 
31.0
32.4
60.9
65.0
 
Net interest income before provision for credit losses
 
55.1
54.0
107.2
107.2
 
Total net revenue before provision for credit losses  and other gains (losses)
 
86.1
86.4
168.1
172.2
 
Provision for credit losses
 
(3.2)
(4.9)
(7.8)
(8.4)
 
Total other gains
 
12.4
2.9
13.0
5.5
 
Total net revenue
 
95.3
84.4
173.3
169.3
 
Total operating expenses
 
62.1
68.4
126.6
138.1
 
Total net income before taxes
 
33.2
16.0
46.7
31.2
 
Income tax expense
 
(0.3)
-
(0.5)
(0.6)
 
Net income from continuing operations
 
32.9
16.0
46.2
30.6
 
 
-
0.2
-
0.3
 
Net income
 
32.9
16.2
46.2
30.9
 
Dividends and guarantee fee of Preference Shares
 
(4.3)
(4.5)
(8.7)
(9.0)
 
Premium paid on Preference Shares buy-back
 
(2.5)
-
(2.6)
-
 
Net earnings attributable to Common Shareholders
 
26.1
11.7
34.9
21.9
 
 
 
 
 
 
 
 
Net earnings per Share
 
 
 
 
 
 
- Basic
 
$0.05
$0.02
$0.06
$0.04
 
- Diluted
 
$0.05
$0.02
$0.06
$0.04
 
 
 
 
 
 
 
 
Adjusted weighted average number of participating shares on a fully diluted basis (1) (thousands)
 
553,564
558,493
553,528
557,588
 
Key Financial Ratios
 
 
 
 
 
 
Return on assets
 
1.47%
0.74%
1.04%
0.71%
 
Core cash return on average tangible common equity
 
10.97%
5.54%
9.21%
6.55%
 
Net interest margin
 
2.62%
2.67%
2.55%
2.65%
 
Core efficiency ratio
 
70.70%
77.65%
72.91%
78.69%
 
 
1) Includes both Common and Contingent Value Convertible Preferred equity. 
Transactions that are viewed by Management not to be in the normal course of day-to-day business and which are unusual in nature are excluded from core earnings as they obscure or distort the analysis of trends.  The table below shows the reconciliation of net income in accordance with US GAAP to core earnings.
 
Reconciliation of US GAAP Results to Core Earnings
Income Statement
 
Three Months ended 30 June
            Six Months ended 30 June
 
 
(in $ millions)
 
2013
2012
2013
2012
 
 
Net income
                             32.9
                            16.2
                               46.2
                  30.9
 
 
 
 
 
Non-core items:
 
 
 
 
Net income from discontinued operations
-
(0.2)
-
(0.3)
Gain on sale of affiliate
-
(4.2)
-
(4.2)
Realised gain on legal settlement
(13.1)
-
(13.1)
-
Early retirement programme and redundancies
0.4
-
2.4
-
Total non-core items
(12.7)
(4.4)
(10.7)
(4.5)
Core earnings
20.2
11.8
35.5
26.4
Preference dividend and guarantee fee
(4.3)
(4.5)
(8.7)
(9.0)
Amortisation of intangible assets
0.8
1.3
1.7
2.6
Core cash earnings to common*
16.7
8.6
28.5
20.0
Core cash earnings per Share fully diluted
$0.03
$0.02
$0.05
$0.04
* Premium paid on Preference Shares buy-back was not adjusted as Management views the transaction as non-core.
 
COMMENTARY ON STATEMENT OF OPERATIONS FOR THE QUARTER ENDED 30 JUNE 2013 COMPARED WITH THE QUARTER ENDED 30 JUNE 2012
 
Net Income
Core earnings for the quarter ended 30 June 2013 were $20.2 million, up $8.4 million from $11.8 million in the second quarter of 2012.  Total net income for the second quarter, including net non-core gains of $12.7 million (2012: $4.4 million), was $32.9 million compared to net income of $16.2 million in the second quarter of 2012. 
 
Total net revenue before credit provisions and net gains was $86.1 million in the second quarter of 2013, down $0.3 million from $86.4 million in the second quarter of 2012, reflecting a $1.4 million decrease in non-interest income off set by higher net interest income, up $1.1 million from the prior year.
 
Provisions for credit losses were $3.2 million in the second quarter of 2013, a decrease of $1.7 million from $4.9 million in the same quarter the prior year, reflecting reduced specific provisions required on troubled loans, as the prior year included a large provision on a legacy commercial loan facility in our United Kingdom operation.
 
Total other gains of $12.4 million in the quarter are up $9.5 million from the second quarter of 2012, due primarily to a gain of $13.1 million resulting from a legal settlement reached during the second quarter of 2013 (relating to a previously disposed investment) offset by losses on trading investments of $0.3 million and OREO properties of $0.4 million. The second quarter of 2012 included the sale of our minority interest in a Cayman-based insurer, Island Heritage, for a net gain of $4.3 million, offset by $0.7 million of realised and unrealised losses on the investment portfolio and a $0.7 million impairment loss on OREO properties.
 
Core operating expenses improved by $6.7 million (10%) from $68.4 million in the second quarter of 2012 to $61.7 million in the second quarter of 2013, but when including non-core expenses, the improvement was $6.3 million or 9%. Net salaries and benefits costs were $31.0 million in the second quarter of 2013, down $3.9 million, inclusive of $0.4 million of early retirement and redundancy cost, in the second quarter of 2013.  Excluding this non-core expense, salaries and benefits costs were down $4.3 million (12%).  Other notable expense reductions, totalling $2.4 million from cost management initiatives, were mainly comprised of a $1.5 million decrease in technology and communications expense, a $0.5 million decrease in property costs and a $0.4 million reduction in amortisation of intangible assets. Income tax expense was $0.3 million compared to an immaterial benefit in the second quarter of 2012.
 
 
Net Interest Income
Net interest income before provision for credit losses increased by $1.1 million to $55.1 million in the second quarter of 2013, compared to $54.0 million at the end of the second quarter of 2012. 
         Total interest income increased by $0.1 million to $62.7 million, as a result of $2.6 million higher revenues on investments, due to a $0.3 billion increase in average investment balances, offset by a $2.3 million decrease in loan revenue largely due to the repayment of a $240 million Government loan subsequent to the end of the second quarter 2012. The average yield on loans and investments in the second quarter of 2013 was 4.72% and 2.17% respectively (second quarter 2012: 4.76% and 2.01% respectively);
         Total interest expense declined by $1.0 million, primarily from lower interest expense on total deposits and the redemption of the 2008 issuance - Series A, 7.59% subordinated debt effective 27 May 2013.  The average cost of funds in the second quarter of 2013 fell by 9 basis points from 0.54% in the second quarter of 2012 to 0.45% in the second quarter of 2013 on average interest bearing liabilities of $6.8 billion;
         Average interest earning assets yielded 2.98% and were $8.4 billion in the second quarter of 2013, up $0.3 billion year on year driven by an increase in average customer and total deposits.
Non-Interest Income
Total non-interest income was down $1.4 million to $31.0 million in the second quarter of 2013, compared to $32.4 million in the second quarter of 2012; the net decrease was primarily attributed to:
         Asset management revenue decreased by $1.4 million from $6.1 million in the second quarter of 2012 to $4.7 million in the second quarter of 2013 primarily from falling USD Libor rates which impacts fees earned on the Butterfield Money Market Fund (“BMMF”), net redemptions from the BMMF, and the termination of an investment management agreement subsequent to the second quarter of 2012.
         Banking services revenue of $7.6 million was down $0.5 million from $8.1 million a year ago, due primarily to lower credit card and electronic banking services fee income, as well as higher costs paid to service providers;
         Trust revenue of $7.3 million for the quarter was up $0.7 million compared to the second quarter of 2012, due primarily to the timing of income recognition, together with new business written and growth in time-spent fees;
         Other non-interest income of $1.3 million was down $0.4 million, principally due to a decrease in the current quarter’s equity pick-up in affiliates.
 
Non-Interest Expense
Non-interest expenses fell by $6.3 million, or 9%, to $62.1 million in the second quarter of 2013 from $68.4 million in the second quarter of 2012, primarily as a result of the following:
         Net salaries and employee benefits decreased by $3.9 million year on year to $31.0 million in the second quarter of 2013. Excluding the $0.4 million of early retirement and redundancy payments in the second quarter of 2013, salary and employee benefits were $30.6 million, down $4.3 million compared to the $34.9 million in the second quarter of 2012.  The reduction was mainly driven by headcount reductions of 69, year on year, resulting in a $1.9 million decrease in salary, overtime and temporary employee costs, a $1.0 million reduction in staff benefits, mainly attributable to decreasing pension and medical expenses, and a reduction of $1.0 million in staff incentive expense. Excluding 32 summer students hired as part of the Bank’s summer programme, headcount at the end of the second quarter of 2013 was 1,157, compared to 1,226 a year ago on a full-time equivalency basis;
         Technology and communications expenses decreased by $1.5 million to $13.2 million from expense control measures and IT infrastructure rationalisation initiatives;
         Property costs declined by $0.5 million from $6.4 million in the second quarter of 2012 to $5.9 million in the second quarter of 2013, due primarily to lower depreciation expense resulting from the write-down of certain properties in the prior year;
         Amortisation of intangible assets decreased by $0.4 million primarily due to the write-down of intangible assets in the prior year.
 
COMMENTARY ON BALANCE SHEET AT 30 JUNE 2013 COMPARED WITH 31 DECEMBER 2012
 
Total Assets
Total assets of the Bank were $9.0 billion at 30 June 2013, up $0.2 billion from 31 December 2012. The Bank maintained a highly liquid position at 30 June 2013 with cash and cash equivalents plus short and long-term investments representing 50.3% of total assets, or $4.5 billion, which was consistent with the prior year end.
 
Loans Receivable
The loan portfolio totalled $4.1 billion at the end of the second quarter of 2013, up $147 million from year end.  Commercial loans totalled $1.4 billion, an increase of $0.2 billion from year-end as result of loan growth late in the second quarter of 2013.  Consumer loans declined $18.3 million to $255 million due to continued repayments—primarily credit cards and other consumer loans—whilst the residential mortgage book declined $19.9 million compared to year end, due to net repayments.
 
Allowance for credit losses at 30 June 2013 totalled $53.8 million, a decrease of $2.1 million from year end. The movement in the allowance was mainly the result of additional provisions of $11.2 million taken year to date (before recoveries of $3.4 million) net of $13.3 million in charge-offs and foreign exchange movements.
 
The loan portfolio represented 45.6% of total assets at 30 June 2013 (31 December 2012: 44.8%), whilst loans as a percentage of customer deposits decreased from approximately 54.4% at year-end 2012 to 54.1% at the end of the second quarter of 2013.
 
As at 30 June 2013, the Bank had gross non-accrual loans of $110.0 million representing 2.65% of total gross loans an improvement from the $113.4 million, or 2.83%, of total loans at year-end 2012. Net non-accrual loans were $87.0 million, equivalent to 2.12% of total loans, after specific provisions for such loans of $23.0 million, reflecting reduced specific coverage ratio of 20.9%, down from 23.6% at 31 December 2012, due principally to charge offs of commercial mortgage loans deemed unrecoverable.
 
Non-performing loans, which include non-accrual loans and accruing loans past due by 90 days or more, totalled $132.8 million as at 30 June 2013, down $8.9 million from the year end.  The decrease was primarily the result of $10.3 million charge offs on commercial mortgages not considered recoverable and non-performing residential mortgages, higher by $3 million.  We continue to closely monitor early warning signs of stresses in our loan portfolio and work with customers who experience financial difficulty amidst ongoing economic challenges in many of our largest jurisdictions.
 
Investments
The investment portfolio was $2.8 billion as at 30 June 2013, compared to $2.9 billion as at 31 December 2012.  A net decrease in Certificates of Deposit of $0.3 billion was reinvested in US government and federal agency securities now totalling $1.7 billion (61%) of the total investment portfolio.   The investment book was made up of high quality assets with 98% invested in A-rated or better securities.  Total net unrealised losses of the total investment portfolio were $31.8 million, compared to an unrealised gain of $48.8 million at year end. The $80.6 million movement in unrealised losses for the year to date relate primarily to the impact of changes in interest rates on the longer duration assets.
 
Deposits
Average customer deposits increased by $0.2 billion to $7.4 billion in 2013, compared to $7.2 billion at year-end 2012. On a quarter-end basis, customer deposits were up $0.3 billion from year end at $7.6 billion.
 
REVIEW OF RESULTS OF MAJOR OPERATIONS
 
Bermuda
Net income before gains and losses was $11.1 million in the second quarter of 2013, up $2.1 million from $9.0 million in the second quarter of 2012.   Excluding the $0.4 million of redundancy costs in the current quarter, core net income before gains and losses was up $2.5 million, year on year, due principally to cost management initiatives.  Gains and losses of $12.8 million in the current quarter were $13.4 million favourable compared to the second quarter of 2012, due primarily to the $13.1 million gain on the settlement of a lawsuit involving a previously written down and disposed investment.
 
Net interest income before provisions for credit losses increased by $0.8 million to $34.4 million in the second quarter of 2013 due to an increase of $2.5 million in investment and deposits income and $0.7 million in lower interest expenses offset by reduced loan revenue, down $2.4 million on lower quarterly average loan volumes.  The net interest margin in the second quarter of 2013 was 3.40%.
 
Provisions for credit losses were $2.3 million. No net credit provisions were recorded in Bermuda in the second quarter of 2012, as specific reserves were offset by a release in the general provision.
 
Non-interest income of $14.9 million in the second quarter of 2013 was down $1.5 million, or 9.0%, reflecting lower revenues from banking, asset management, and foreign exchange, which were partially offset by increased trust revenues.
 
Total non-interest expenses declined by $5.2 million to $35.8 million in the second quarter of 2013, compared to $41.0 million in the second quarter of 2012.  Salary costs declined $2.7 million as a result of reduced headcount, down due to the Bank’s voluntary early retirement programme, combined with natural attrition and redundancies.  Expense savings, principally from technology and other expense management initiatives, contributed an additional $2.5 million in cost reductions.
 
Total assets as at 30 June 2013 were $4.6 billion, consistent with year end. Customer deposits ended the quarter at $3.4 billion, up $0.1 billion from year-end, and loan balances increased by $0.1 billion from year-end to $2.3 billion.
 
Client assets under administration for the trust and custody businesses were $29.5 billion and $27.5 billion, respectively, whilst assets under management decreased by $0.3 billion to $2.8 billion from year-end 2012.
 
Cayman Islands
Net income before gains and losses in the second quarter of 2013 of $6.9 million, was up $2.8 million from $4.1 million in the prior year.  The increase was primarily due to an improvement in investment income and banking fees, coupled with a reduction in salaries and technology expenses. Net income for the current quarter was $6.5 million, a decrease of $1.8 million from $8.3 million in the prior year quarter that included a gain on sale of affiliates of $4.3 million. 
 
Net interest income before loan loss provisions was $12.3 million in the second quarter of 2013, an improvement of $0.9 million compared to the same quarter a year ago.  The increase was driven primarily by an improvement in investment income of $0.7 million, resulting from an average increase of $120 million in the investment portfolio. Net interest margin of 2.39% in the current quarter remained flat as compared to the second quarter of 2012.
 
Provisions for credit losses were $0.6 million compared to $1.2 million in the prior year; the decrease of $0.6 million resulting from significant provisions taken on the Bahamas loan book in the prior year.
 
Non-interest income was $8.0 million, up $0.4 million from $7.6 million in the prior year. The increase was due primarily to higher banking fees and foreign exchange revenues, partially offset by lower asset management and trust revenues.
 
Non-interest expenses decreased $1.0 million, year over year, to $12.8 million. The decline in costs was $0.5 million each for salaries & benefits on reduced headcount and technology costs on reduced technology outsourcing costs.
 
Total assets at 30 June 2013 were $2.3 billion, up $0.2 billion from year-end 2012, reflecting higher client deposit levels. Net loans to third parties increased by $76 million from year-end 2012 to end at $781 million, with two large syndicated loans added late in the current quarter.
 
Client assets under administration for the trust and custody businesses were $1.5 billion and $1.4 billion, respectively, whilst assets under management remained unchanged at $ 0.7 billion during the quarter.
 
Guernsey
Guernsey posted net income of $2.0 million in the second quarter of 2013, compared to net income of $2.7 million in the second quarter of 2012, a decrease of $0.7 million (£0.4 million), of which the majority was due to compressing asset yields impacting net interest income.
 
Net interest income before provision for credit losses declined by $0.5 million to $4.8 million in the second quarter of 2013, compared to $5.3 million last year.  Average interest-earning assets were $1.5 billion, in line with the prior year, but the average yield fell 19 basis points to 1.61%.  Higher average loan balances could not compensate for the adverse impact of a compression in US Agency investment yields, down 0.52%.  As a result, the net interest margin fell 20 basis points from 1.45% in the second quarter of 2012 to 1.25% in the second quarter of 2013.
 
Provisions for credit losses were immaterial in the quarter and the equivalent period in the prior year. However, the current quarter recorded a net recovery compared to a net provision in the prior year for a favourable variance of $0.1 million.
 
Non-interest income decreased $0.2 million (£0.1million) to $4.8 million, mainly due to lower asset management, trust, and custody income.
 
Total non-interest expenses, at $7.7 million, were $0.1 million higher than the second quarter of 2012, due primarily to an increase in technology costs offset by savings in other expense categories.
 
Total assets at 30 June 2013 of $1.6 billion were up $0.1 billion from year-end 2012, attributable primarily to corporate client deposit level growth.
 
Client assets under administration for the trust, custody and administered banking businesses were $10.3 billion (second quarter 2012: $9.6 billion), $7.4 billion (second quarter 2012: $7.2 billion), and $1.5 billion (second quarter 2012: $1.5 billion), respectively, reflecting solid growth in the trust and custody business lines.  Client assets under management were $0.4 billion, lower than the prior year of $0.6 billion as a result of matured mandates.
 
United Kingdom
The United Kingdom recorded net income of $0.5 million in the second quarter of 2013, up $3.6 million as compared to a loss of $3.1 million in the second quarter of 2012.  Total revenue before gains and losses increased by $2.6 million to $4.9 million. Total expenses decreased $0.2 million from $4.6 million in the second quarter of 2012 to $4.4 million in the second quarter of 2013.
 
Net interest income before credit provisions of $3.5 million was in line with the second quarter of 2012.  The net interest margin increased by 7 basis points to 1.61% in the second quarter of 2013 primarily due to reduced cost of funding.
 
Provisions for loans losses recorded in the second quarter of 2013 were $0.4 million, compared to $3.8 million in loan losses in the second quarter of 2012. The second quarter 2012 provision related to a legacy commercial loan facility. During the second quarter of 2013, a further provision of $1.3 million against this facility was required but this has been partially offset by the recovery from a previously written off commercial facility.
 
Total assets stood at $0.8 billion for the current quarter, down $0.1 billion from year end 2012. Loan and deposit balances were largely flat $486 million (£319 million) and $715 million (£470 million) respectively.
 
Assets under management, at $245 million (£161 million) were up $8 million (£15 million) from $237 million (£146 million) at year-end. Custody client assets under administration at the end of the second quarter of 2013 amounted to $1.6 billion (£1.1 billion) as compared to $1.7 billion (£1.0 billion) at year-end 2012.
 
Notes:
 
(1) The results of Butterfield Bank (Barbados) Limited are presented as discontinued operations, and prior-period amounts have been adjusted accordingly. Revenues, non-interest expenses, income taxes, earnings before income taxes, net interest margin, return on tangible common equity, tangible equity and headcount throughout this News Release are from continuing operations (i.e., before discontinued operations) unless otherwise stated. Net income, earnings per Share, return on equity, and return on assets, throughout this news release are after discontinued operations unless otherwise stated.