The Bank of N.T. Butterfield & Son Limited has declared third-quarter net income of $39.8 million, compared with net income of $39.6 million for the previous quarter and $30.5 million for the third quarter of 2020.

Core net income for the third quarter of 2021 was $40.0 million compared with $40.1 million for the previous quarter and $36.5 million for the third quarter of 2020.

The core return on average tangible common equity for the third quarter of 2021 was 17.9 per cent. The efficiency ratio was 66.5 per cent and the core efficiency ratio was 66.3 per cent.

Butterfield's chairman and chief executive officer Michael Collins said: "The third quarter of 2021 continued to illustrate the value of Butterfield's business model across economic cycles.

“Our strong results were achieved despite the prevailing low interest rate environment and the continued waves of outbreaks of Covid-19.

“Butterfield has been able to maintain strong net interest earnings and non-interest revenue, with excellent credit quality and performance, while managing strategic business investments and prudent expense moderation initiatives.

“Our balance sheet remains strong and we continue to work with depositors to best serve their needs.

“With historically high deposits, we continuously evaluate deployment options into earnings assets, while maintaining appropriate capital, funding and liquidity levels."

The board again declared a quarterly dividend of $0.44 per common share to be paid on November 24 to shareholders of record on November 10.

During the third quarter of 2021, Butterfield also repurchased 0.1 million common shares under the bank's current 2.0 million common share repurchase plan authorisation.

The current total regulatory capital ratio as at September 30, 2021, was 20.4 per cent as calculated under Basel III, compared to 19.8 per cent as at December 31, 2020.

Both of these ratios remain significantly above the Basel III regulatory requirements applicable to the bank.

As previously announced, during the quarter, the bank has reached a resolution with the US Department of Justice concerning the inquiry into Butterfield’s legacy business with US clients that was first reported in November 2013.

The resolution is in the form of a non-prosecution agreement with a three-year term.

The bank paid $5.6 million in respect of forfeiture and tax restitution amounts, in line with the provision that was included in the bank's financial statements as recorded in 2015 and 2016.