Butterfield Bank made a profit of $35.9 million in the first quarter of the year.

The figure was an increase of $9.1 million on the same quarter last year and equivalent to 65 cents per share, up 84 cents on the last quarter of 2016 and 17 cents over the first quarter of last year.

The bank’s board also declared a dividend of 32 cents per common share, to be paid at the end of March — three times the sum paid in the same quarter last year.

Michael Collins, CEO of the bank, said: “As shown by our strong results for the first quarter of 2017, we continue to successfully execute our strategy of growing community banking market share while investing in the expansion of our wealth management business.

“I am pleased with Butterfield’s performance this quarter as it reinforces our ability to produce consistently high risk-adjusted returns relative to our US regional bank peers.”

Mr Collins said the first quarter also saw the launch of Butterfield’s UK residential mortgage business, Butterfield Mortgages Ltd, after the closure of the bank’s London private banking business.

He added the UK mortgage service, targeted at wealthy buyers, would provide the bank’s “highly liquid” Guernsey bank with low risk, floating rate sterling loans to invest its sterling deposits.

Michael Schrum, the bank’s chief financial officer, said: “Butterfield’s solid performance continued in the first quarter of 2017, with year-over-year improvements in both non-interest income and net interest income.”

Net interest income for the period went up by $5.6 million over the first quarter of 2016, due mostly to higher interest earned on investments as a result of higher balances in the Bermuda and Caymans portfolios, as well as increased yields on the investment portfolio.

The investment portfolio rose slightly in the first quarter to $4.5 billion, compared to $4.4 billion at the end of the fourth quarter last year.

Mr Schrum said: “The increase due primarily to $0.2 billion in assets allocated to the held-to-maturity portfolio through the purchase of US government and federal agency securities.

“Meanwhile, average deposits of $10 billion remained flat as compared to the fourth quarter of 2016.

“Our asset quality continues to be strong, with 94 per cent of the bank’s investment portfolio invested in A or better rated securities.”