Bank of NT Butterfield & Son Ltd Q4 2024 Earnings Call Transcript

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

Question: David Feaster - Raymond James - Analyst : Hi, good morning everybody.

Question: David Feaster - Raymond James - Analyst : Maybe just start on the deposit side. You guys have done a great job, we've been expecting some of these transitional deposits to flow out, but that doesn't seem like it's been occurring and, exclusive currency. I mean, you continue to grow deposits. I mean, if you just talk about what you're seeing on the deposit front. And maybe the timeline that you are expecting to get back to that 11.5 and the 12 billion asset or deposit range and then just any commentary on the deposit cost side, you guys have done a great job. So just wanted a broad question on deposits.

Question: David Feaster - Raymond James - Analyst : Okay, and then could you, I was hoping you could maybe touch on the margin trajectory, right? Obviously there's some pretty material re pricing tailing in the securities book. You guys got, you got some opportunity to deploy some excess liquidity, you did that a bit in the quarter, some opportunity to further reduce deposit costs for some of those more floating rate deposits, but I'm just curious. The levers you're pulling to help defend the margin and drive expansion. It just, how do you think about the margins trajectory going forward? You've done a great job, keeping it stable, in spite of the asset sensitivity. So just wanted to get a sense of what you're thinking.

Question: David Feaster - Raymond James - Analyst : Terrific. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 3:00PM, NTB.N - Q4 2024 Bank of NT Butterfield & Son Ltd Earnings Call And then I just wanted to touch on on capital priorities. Obviously you guys have been really active with the buyback. You got the new program you just announced. We got a nice pop in the stock, some ketchup, I think in the share price. How price sensitive are you on the buybacks and then just on M&A conversations, how are those going coming out of the analyst day that we had and you know what maybe some. Increased appetite, and willingness to compete on pricing to some degree. Just kind of curious how those MA conversations are going.

Question: David Feaster - Raymond James - Analyst : Perfect. Thanks, everybody. Great quarter. Thanks very much.

Question: Timur Braziler - Wells Fargo - Analyst : Hi, good morning. (inaudible) maybe just following up on that line of questioning around the capital base, the buyback announced for 25 is roughly half of what you guys did in 24, and I'm just wondering kind of the rationale for for maybe ratcheting that down a little bit and maybe how does that correlate to. A higher likelihood or greater possibility of maybe, an M&A transaction hitting in 25. Are those two related or maybe just talk through why the buyback authorization was ratcheted down to 25 if not.

Question: Timur Braziler - Wells Fargo - Analyst : Got it. Okay. And then, I think the highlight of 24 was just your ability to defend the top line given the asset sensitive balance sheet, and I'm just wondering as we go into 25, you can give some color around margin next 10. I'm just looking at at net interest income. Does that follow suit with margin where you're getting a little bit of stability and maybe some expansion as the year goes on. Or the fact that maybe the balance sheet is still a little bit bloated from some of these deposits that that might migrate away there could be some interim pressure on the top line. How are you guys thinking about NII versus NIM here?

Question: Timur Braziler - Wells Fargo - Analyst : Yeah, okay, and then just last for me if you could just remind me what the remaining impact is for the Bermuda resi book from the rate cuts, is that fully baked into the those yields now, or is there still some pull through that's going to hit in the first quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 3:00PM, NTB.N - Q4 2024 Bank of NT Butterfield & Son Ltd Earnings Call

Question: Timur Braziler - Wells Fargo - Analyst : Great, thanks for the call. Thanks.

Question: Tim Switzer - KBW - Analyst : Hey, good morning, guys. Thank you for taking my question.

Question: Tim Switzer - KBW - Analyst : My first question is on the expense trajectory with your guide of $90 million to $92 million of quarterly expenses. Does it kind of move up to the higher end of the range over the course of the year and, maybe like above that in the back half of the year, do you expect to be in that range, every quarter?

Question: Tim Switzer - KBW - Analyst : Great, got it. Thank you. And I have a similar question on the non non-interest income guide that you guys gave for the mid $50 million dollar range. That kind of implies for the full year, stable to slightly lower fee income year to year. Is that kind of a guide more for the first three quarters and you're above that Q4? How should we think about that?

Question: Tim Switzer - KBW - Analyst : Okay, got it. That's helpful and the last question I have. And if you could kind of provide an update on the drivers of the lower NPLs this quarter, it seems like, you guys have a good resolution and a residential mortgage loan in the Channel Islands and then any update you have on that legacy hospitality facility, I believe that was where the sales.

Question: Tim Switzer - KBW - Analyst : Great thank you appreciate all the colors.