Investor Presentation The Bank of N.T. Butterfield & Son Limited June 2020
Important Notice Disclaimer: This presentation has been prepared by us solely for informational purposes. This presentation has been prepared to assist interested parties in making their own evaluation of us and does not purport to contain all of the information that may be relevant. In all cases, interested parties should conduct their own investigation and analysis of us and the data set forth in this presentation and other information provided by or on behalf of us. This presentation does not constitute an offer to sell, nor a solicitation of an offer to buy, any of our securities by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create an implication that there has been no change in our affairs after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and have not independently verified such information Forward-Looking Statements : Certain of the statements made in this presentation are forward-looking statements within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,as amended. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Bank to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Our performance may vary due to a variety of factors, including the impact of the COVID-19 pandemic, the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, worldwide economic conditions and fluctuations of interest rates, the successful completion and integration of acquisitions or the realization of the anticipated benefits of such acquisitions in the expected time-frames or at all, success in business retention and obtaining new business and other factors. All statements other than statements of historical fact are statements that could be forward-looking statements. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings. Such reports are available upon request from the Bank, or from the SEC, including through the SEC’s website at https://www.sec.gov. Except otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included herein, whether as a result of new information, future events or other developments. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. About Non-GAAP Financial Measures: This presentation contains non- GAAP financial measures including “core” net income and other financial measures presented on a “core” basis. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. Reconciliations of these non-GAAP measures to corresponding GAAP financial measures are provided in the Appendix of this presentation. 2
Today’s Presenters Michael Collins Chairman & Group Chief Executive Officer • Named Group Chief Executive Officer in September of 2015 and named Chairman in July of 2017 • 30+ years of financial services experience • Prior to NTB, held senior positions at Morgan Guaranty Trust Company in New York, Bank of Bermuda and HSBC in Bermuda, where he was COO Michael Schrum Director & Group Chief Financial Officer • Named Group Chief Financial Officer in September of 2015 • 20+ years of financial services experience and is a Chartered Financial Analyst and a Fellow of the Institute of Chartered Accountants in England and Wales • Prior to NTB, served as CFO at HSBC Bank Bermuda Geographic Footprint Awards 3
Company Overview Company Highlights Franchise retail banking presence in Bermuda and Cayman Bermuda Bank of the Year for 7 consecutive years in Bermuda and for the past 5 of 7 years in 1 Leading Bank in Attractive Markets Cayman (1) 30%+ deposit market share in Bermuda and Cayman Islands, respectively, in 2019 Core ROATCE of 18.6% (2) Diversified Business Mix, Strong Core ROATA of 1.2% (2) 2 Capital Generation and Return Current dividend rate of $0.44 per common share per quarter AUA: $91.6bn (3) / AUM: $5.2bn 43% Loans / Deposits; 59% Cash + Securities / Total Assets Efficient, Conservative 36% Risk-Weighted Assets / Total Assets ratio 3 Balance Sheet NPLs / Loans of 1.27% Tier 1 Capital ratio of 17.5% Fee income ratio of 36.6% Visible Earnings with Strong Fee Low-cost, historically stable customer deposit funding 4 Income Generation Cost of deposits of 0.42% Last acquisition completed in Q3 2019 Experienced Team with Deep Management has an average of 25+ years of relevant industry experience 5 Market Knowledge Combined decades of familiarity in key geographic markets Source: S&P Global Market Intelligence and Company documents; Conversion rate: 1 BMD$ = 1 US$ Note: All information in US$ as of or for the quarter ended 31-Mar-2020 unless noted otherwise (1) The Banker publication 4 (2) See the Appendix for a reconciliation of the non-GAAP measures (3) AUA for trust only, does not include custody; US$
1. Leading Bank in Attractive Markets 1 NTB’s Credit Ratings Overview (1) Issuer Type Rating Rating Date Outlook Company Credit Ratings Kroll Deposit A+ Stable 7/16/2019 Senior Unsecured Debt A+ Stable 7/16/2019 Subordinated Debt A Stable 7/16/2019 Short-Term Deposit K1 Stable 7/16/2019 Short-Term Debt K1 Stable 7/16/2019 Moody's Baseline Credit Assessment baa2 Stable 4/3/2020 Long- Term Issuer A3 4/3/2020 Stable Deposit A3 Stable 4/3/2020 Subordinated Debt A3 4/3/2020 Stable S&P Issuer Credit Rating BBB+ 8/20/2019 Stable Subordinated Debt BBB 8/20/2019 Stable Country Issuer Rating Outlook Sovereign Credit Ratings Bermuda Moody's A2 S&P A+ 4/16/2020 Stable Cayman Islands Moody's Aa3 Guernsey (2) S&P AA- 1/17/2020 Stable Jersey (2) S&P AA- 1/17/2020 Stable Source: S&P Global Market Intelligence, Kroll Bond Rating Agency, S&P Global and Moody’s Investor Service 5 (1) A rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating agency has its own the methodology for assigning ratings and each rating should be evaluated independently of any other rating (2) Ratings reflect local currency long term outlook
Recommend
More recommend
