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

That compares with net income of $53.5 million, or $1.11 per diluted common share, for the previous quarter and $62.2 million, or $1.24 per diluted common share, for the first quarter of 2023.

Core net income was $55 million, compared with $55.3 million for the previous quarter and $62.2 million for the first quarter of 2023.

The return on average common equity was 21.5 per cent, compared with 22.5 per cent for the previous quarter and 28 per cent for the first quarter of 2023.

The core return on average tangible common equity was 24.5 per cent, compared with 25.4 per cent for the previous quarter and 30.5 per cent for the first quarter of 2023.

Michael Collins, Butterfield's chairman and chief executive officer, said: “The bank’s first-quarter results are a great start to the year and continue to demonstrate the strong profitability of Butterfield’s capital-efficient non-interest earnings, well-structured balance sheet and thoughtful capital management.

“Since listing on the NYSE in 2016, the bank has consistently maintained operating returns on tangible equity in the range of 16 per cent to 28 per cent, and we expect these levels of profitability to continue across typical economic cycles.

“We are on track to deliver top-quartile returns relative to US regional banks. The bank remains highly liquid with strong capital levels and has a loan portfolio that is primarily comprised of well-collateralised residential mortgages with limited commercial and hospitality real-estate exposure in Bermuda and the Cayman Islands.”

Period-end deposit balances were $12.1 billion, an increase of 1.2 per cent compared with $12 billion at December 31, 2023, primarily owing to deposit increases in the Channel Islands.

Tangible book value per share improved by $0.16, or 0.8 per cent, to $19.45 per share.

The board has declared a quarterly dividend of $0.44 per common share to be paid on May 21 to shareholders of record on May 7.

During the first quarter, Butterfield repurchased 1.2 million common shares under its share-repurchase programme.

The total regulatory capital ratio as at March 31 was 24.9 per cent as calculated under Basel III, compared with 25.4 per cent as at December 31, 2023.

Butterfield said both ratios remain conservatively above the minimum Basel III regulatory requirements applicable to the bank.