Bank of N.T. Butterfield & Son Ltd Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst : I had a couple of things I wanted to address. I guess, first, just on the expense side, obviously, a pretty nice sequential drop here. I was curious maybe if you can give us -- Michael, you kind of alluded in the prepared remarks that there's some ongoing monitoring, given the lower rate environment, et cetera. But just curious maybe if you can give us a little bit more color on what some of the major drivers of the sequential decrease were and the sustainability of those items? And then also, just more broadly, what are some of the things -- I know you guys have been fairly proactive managing the expense base already. So just curious what some of the other areas that you guys are potentially looking at that we should be mindful of moving forward?

Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst : Great. Helpful. And then maybe switching over to the noninterest income side. Michael Collins, you mentioned some fee -- trying to expand some fee opportunities. Any additional color you can provide us there of what some of the opportunities you're looking at that might be material moving forward?

Question: Michael Perito - Keefe, Bruyette, & Woods, Inc., Research Division - Analyst : Great. Helpful. And then just lastly, I mean, you mentioned that the mortgage deferral was in an effort to kind of bolster the balance sheet of your customer base. I guess do you have the desire -- the fact that you guys -- do you think your customers today are feeling okay about kind of their cash position and the outlook? Or do you think the tourism uncertainty, particularly in Bermuda, but I guess in Cayman as well, is still weighing on kind of the customer confidence and business outlook for many of your constituents there on the islands?