Butterfield Bank has reported net income for the second quarter of 2024 of $50.6 million.

That compares with net income of $53.4 million for the previous quarter, and $61 million for the second quarter of 2023.

Butterfield said net income was down in the second quarter versus the prior quarter primarily owing to higher non-interest expenses as a result of inflationary pressures, higher performance-based remuneration and benefits accruals and higher technology spend from recently implemented core banking software.

Core net income for the quarter was $51.4 million, compared with $55 million for the previous quarter and $57 million for the second quarter of 2023.

The return on average common equity for the quarter was 20.7 per cent, compared with 21.5 per cent for the previous quarter and 25.9 per cent for the second quarter of 2023.

The core return on average tangible common equity for the quarter was 23.3 per cent, compared with 24.5 per cent for the previous quarter and 26.3 per cent for the second quarter of 2023.

The efficiency ratio was 62.4 per cent, compared with 60.9 per cent for the previous quarter and 57.6 per cent for the second quarter of 2023.

The core efficiency ratio was 61.8 per cent, compared with 59.8 per cent in the previous quarter and 57.6 per cent for the second quarter of 2023.

The bank also announced the appointment of a new independent director, Stephen E. Cummings, who is the Secretary of Finance for the Commonwealth of Virginia.

Butterfield said Mr Cummings had a long and successful career in banking and finance, most recently serving as president and chief executive officer of Mitsubishi UFJ Financial Group in the Americas.

Michael Collins, chairman and chief executive, said: “During the second quarter of 2024, Butterfield continued to deliver strong returns with sustainable non-interest income, disciplined expense management, a stable balance sheet and a conservative credit profile.

“Our capital management strategy produces consistent and attractive shareholder returns through quarterly cash dividends and active share repurchases, which now includes a new share repurchase authorisation.

“Growth through M&A remains a priority but, in the absence of a near term acquisition, excess capital will be allocated to support organic growth, dividends and share repurchases.”

Mr Collins added: “I am excited that Stephen Cummings has joined our board and that Butterfield continues to attract such high-quality directors.

“Stephen is an excellent addition as an independent director and will further strengthen our governance and financial expertise at the board level.

"I welcome Stephen to Butterfield and look forward to working with him as we continue to create value for all of the bank’s stakeholders.”

Period-end deposit balances were $12.5 billion, an increase of 4.7 per cent compared with $12 billion at December 31, 2023, primarily owing to deposit increases in the Channel Islands. Average deposits were $12.4 billion in the quarter ended June 30, compared with $12.2 billion in the prior quarter.

Tangible book value per share improved by $0.58 or 3 per cent this quarter to $20.03 per share.

The board declared a quarterly dividend of $0.44 per common share to be paid on August 19 to shareholders of record on August 5.

During the second quarter, Butterfield repurchased 1.1 million common shares under the bank's existing share repurchase programme.

On July 22, the board approved a new share repurchase programme authorising the purchase of up to 2.1 million common shares through to December 31, 2024.

The total regulatory capital ratio as at June 30 was 24.8 per cent as calculated under Basel III, compared with 25.4 per cent as at December 31, 2023.

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