The Bank of N.T. Butterfield & Son (NTB) - 2024 Q4 - Annual Report

Financial Performance - Total net revenue for 2024 was reported at $14,231.4 million, with the Bermuda segment contributing 43.5$9.2 million, or 4.1%, to $216.3 million from$225.5 million in 2023, primarily due to rising deposit costs and higher non-interest expenses[452] - Net revenue for 2024 was $581.2 million, a slight increase of$1.9 million (0.3%) compared to $579.3 million in 2023[464] - Core net income attributable to common shareholders for 2024 was$218.9 million, a decrease of $12.6 million (5.4$231.5 million in 2023[480] - Earnings per common share fully diluted increased to $4.71 in 2024, up$0.13 (2.8%) from $4.58 in 2023[480] Assets and Liabilities - Total assets increased to$14,231.4 million in 2024, up from $13,374.0 million in 2023, while total loans decreased to$4,473.6 million from $4,745.8 million[431] - Total assets increased by$0.9 billion to $14.2 billion, driven by increased deposit levels, while total deposits rose by$0.8 billion to $12.7 billion[453] - Total assets as of December 31, 2024, were$5.4 billion, an increase of $257 million or 5.0$5.2 billion in 2023[617] - Total deposits rose to $12.7 billion in 2024, a 6.3$12.0 billion in 2023[561] - The loan portfolio decreased from $4.7 billion at the end of 2023 to$4.5 billion as of December 31, 2024, representing 31.4% of total assets[577] Income and Expenses - Total non-interest expenses rose by $6.7 million to$359.1 million, largely due to increased technology and communication costs[454] - Interest expense increased significantly by $55.8 million (31.2$234.5 million[464] - The average cost of deposits increased by 43 basis points to 183 basis points, with interest-bearing deposit costs rising by 50 basis points to 231 basis points[454] - Non-interest income rose to $230.0 million, reflecting an increase of$17.7 million (8.3%) compared to $212.3 million in 2023[464] - Core non-interest expenses increased by$14.1 million or 4.1% in 2024, with a core efficiency ratio rising to 60.0% from 58.1% in 2023[544] Economic Indicators - The Bermuda economy grew by an estimated 4.9% in 2023, with real GDP in 2024 showing initial growth of 8.7% driven by the international business sector and tourism recovery[433] - The Cayman Islands GDP is projected to grow by 2.8% in 2024, with real estate transactions reaching $1.0 billion, a 7.0$0.44 per share, totaling $1.76 for each common share held[452] - A new share repurchase program was approved, authorizing the purchase of up to 2.7 million common shares through December 31, 2025[452] - Shareholders' equity increased by$17.2 million to $1.0 billion, attributed to organic growth through net income and adjustments in employee benefit plans[454] Investment and Management - The total assets under management (AUM) for Butterfield Funds reached$2,416.3 million in 2024, up from $1,970.7 million in 2023[431] - Total assets under management (AUM) rose by$0.5 billion to $6.0 billion as of December 31, 2024, compared to$5.5 billion in 2023, driven by increased market values[530] - The total carrying value of the available-for-sale (AFS) investment portfolio was $2.3 billion, while the held-to-maturity (HTM) investment portfolio was valued at$3.2 billion as of December 31, 2024[490] Employee and Operational Metrics - The number of employees decreased to 221 in the Cayman segment, down 14 or 6.0% from 235 in 2023[625] - Salaries and other employee benefits costs were $174.0 million in 2024, a decrease of$3.9 million compared to 2023[548] - Technology and communications costs increased by $4.1 million from 2023 to 2024, reflecting higher software maintenance costs[551]