UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 6-K

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of February 2018 Commission File Number: The Bank of N.T. Butterfield & Son Limited (Translationofregistrant snameintoenglish) 65 Front Street Hamilton, HM 12 Bermuda (Addressofprincipalexecutiveoffices) IndicatebycheckmarkwhethertheregistrantfilesorwillfileannualreportsundercoverForm20-ForForm40-F. Form20-FýForm40-Fo IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(1):o IndicatebycheckmarkiftheregistrantissubmittingtheForm6-KinpaperaspermittedbyRegulationS-TRule101(b)(7):o

2 DOCUMENTS INCLUDED AS PART OF THIS FORM 6-K Attachedhereto(i)asExhibit99.1istheearningsreleaseand(ii)asExhibit99.2istheearningscallpresentation,bothforTheBankofN.T.Butterfield&SonLimitedfor thethreemonthsendeddecember31,2017.alsoattachedhereto(iii)asexhibit99.3isthenewsreleaseannouncingthatthebankofn.t.butterfield&sonlimitedhasentered intoanagreementtoacquiredeutschebank'sbankingandcustodybusinessinthecaymanislandsandchannelislands. PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntoduly authorized. Date:February15,2018 THE BANK OF N.T. BUTTERFIELD & SON LIMITED By: /s/shaunmorris Name: ShaunMorris Title: GeneralCounselandGroupChiefLegalOfficer 2

3 EXHIBIT INDEX Earningscallpresentation-Fourthquarter2017results 99.3 Pressrelease-ButterfieldtoAcquireDeutscheBank'sBankingandCustodyBusinessintheCaymanIslandsandChannelIslands 3

4 ButterfieldAnnouncesResultsforFourthQuarterandCalendarYear2017 Highlights: TodayannouncedamajornewacquisitionofDeutscheBank'sbankingbusinessesintheCaymanIslands,Guernsey andjersey.transactionisanticipatedtoclosebeforetheendof2018; Boarddeclaredquarterlydividendof$0.38percommonshare,a19%increase; Announcedasharerepurchaseprogramofuptoonemillioncommonshares. Financialhighlightsforthefourthquarterof2017: Netincomeof$40.3million,or$0.72pershare; Corenetincome 1 of$42.2million,or$0.76pershare; Returnonaveragecommonequityof19.7%;andcorereturnonaveragetangiblecommonequity 1 of22.3%; Netinterestmarginexpandsto2.87%. Hamilton,Bermuda-February15,2018:The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank")(BSX: NTB.BH; NYSE: NTB) today announced financial results for the fourth quarter and year ended December 31, Net income for the year ended December 31, 2017 was $153.3 million, or $2.76 per diluted common share, compared to $115.9 million or $1.18 per common share for the year ended December 31, Core net income 1 for the year ended December 31, 2017 was $158.9 million, or $2.86 per diluted common share, compared to $138.6 million, or $2.48 per diluted common share, for the year ended December 31, The core return on average tangible common equity 1 for the year ended December 31, 2017 was 22.4%, up from 20.5% for the year ended December 31, The core efficiency ratio 1 for the year ended December 31, 2017 was 64.3%, compared with 63.8% in the previous year. I am pleased to report that Butterfield achieved record profits in 2017, said Michael Collins, Butterfield s Chairman and Chief Executive Officer. These strong results were driven by our specialized banking and wealth management businesses that generate consistent fee income and an expanding net interest margin that benefited from our efficient deposit franchise and a rising rate environment. 1 Seetable"ReconciliationofUSGAAPResultstoCoreEarnings"belowforreconciliationofUSGAAPresultstonon-GAAPmeasures We delivered core net income 1 of $158.9 million, up $20.3 million or 14.6% year-on-year, and a core return on average common equity 1 of 19.7% driven by strong performances in our core banking markets, as well as strong growth in our UK mortgage business. 1

5 "As part of our acquisition strategy, in October, we announced that we had reached our first agreement with Deutsche Bank to acquire its Global Trust Solutions ("GTS") business. The GTS integration process is well underway and anticipated to close early in the second quarter of 2018, ahead of plan. We are pleased that over 90% of the staff have now accepted employment agreements with Butterfield. "This morning we announced that we have reached a second agreement with Deutsche Bank to acquire their banking businesses in the Cayman Islands, Guernsey and Jersey. We are very excited about this acquisition as it could increase our deposit base by about 20% once integrated. It will help us establish a foothold in Jersey, an attractive banking market, as well as increasing our scale and market share in Cayman and Guernsey. The customer base has a very similar profile to our existing banking business and we look forward to welcoming the new relationship teams and their clients to the Butterfield Group. Net income for the fourth quarter of 2017 was $40.3 million, or $0.72 per diluted common share, compared to $41.1 million or $0.74 per common share for the third quarter of Core net income 1 for the fourth quarter of 2017 was $42.2 million, or $0.76 per diluted common share, compared to $40.7 million, or $0.73 per diluted common share, for the third quarter of Net interest income ( NII ) for the fourth quarter of 2017 was $76.1 million, an increase of $1.8 million compared with NII of $74.3 million in the third quarter of 2017 and an increase of $9.3 million compared with NII of $66.8 million in the fourth quarter of Improvements in NII were driven by higher volumes and higher yields on the investment portfolio and increased yields on the adjustable-rate loan portfolio. Net interest margin ( NIM ) for the fourth quarter of 2017 was 2.87%, up 6 basis points from the NIM of 2.81% in the previous quarter and up 42 basis points from the NIM of 2.45% in the fourth quarter of Results for the fourth quarter of 2017 included lower credit costs with a release of provision for credit losses of $5.4 million compared with a release of provision for credit losses of $0.9 million in the fourth quarter of In the fourth quarter of 2017 the provision release was partially offset by $2.5 million of valuation loss adjustment on a foreclosed property included in other real estate owned. Non-interest income improved to $42.4 million for the fourth quarter of 2017, compared with $38.2 million in the previous quarter and $38.8 million in the fourth quarter of Core non-interest expenses were $78.5 million in the fourth quarter of 2017, compared with $71.6 million in the previous quarter and $70.2 million in the fourth quarter of Expenses were significantly elevated in the quarter as the Bank accelerated investment in multiple programs, particularly Sarbanes-Oxley as well as compliance related systems and processes. Additionally, some office set up costs in Singapore were incurred ahead of completing the GTS acquisition. Finally, Butterfield increased the year-end performance-related compensation accruals in the quarter to align the 2017 bonus pools to the record financial performance for the year. CapitalManagement The total capital ratio as at December 31, 2017 was 19.9% as calculated under Basel III, which was effective for reporting purposes beginning on January 1, As of December 31, 2016, the Bank reported its total capital ratio under Basel III at 17.6%. Both of these ratios are significantly above regulatory requirements. The Board remains committed to a balanced and progressive capital return policy. The Board declared an interim dividend of $0.38 per common share, an 18.8% increase over the previous quarter, to be paid on March 9, 2018 to shareholders of record on February 26, In addition, the Board approved a new share repurchase program pursuant to which the Bank is authorized to purchase up to one million common shares in the next year. The program is intended to further augment shareholder return and will become effective on April 1, 2018, subject to all regulatory approvals. 1 Seetable"ReconciliationofUSGAAPResultstoCoreEarnings"belowforreconciliationofUSGAAPresultstonon-GAAPmeasures 2

6 ANALYSISANDDISCUSSIONOFFULLYEARANDFOURTHQUARTERRESULTS Income statement Three months ended (Unaudited) Year ended (in $ millions) December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Non-interestincome Netinterestincomebeforeprovisionforcreditlosses Total net revenue before provision for credit losses and other gains (losses) Provisionforcreditlosses (4.4) Totalothergains(losses) (2.7) Total net revenue Non-interestexpenses (80.4) (73.6) (71.9) (300.3) (285.9) Total net income before taxes Incometaxexpense (0.5) (0.2) (1.1) (0.7) Net income Dividendsandguaranteefeeandpremiumpaidonrepurchaseofpreference shares (45.3) (57.6) Net earnings attributable to common shareholders (9.9) Net earnings per share Basic (0.19) Diluted (0.19) Perdilutedshareimpactofothernon-coreitems (1) 0.04 (0.01) Core earnings per share on a fully diluted basis (1) Adjustedweightedaveragenumberofparticipatingsharesonafullydiluted basis (inthousandsofshares) 55,584 55,465 54,651 55,451 49,611 Key financial ratios Returnonaverageassets 1.5% 1.5% 1.3% 1.4% 1.1% Returnonaveragecommonequity 19.7% 20.7% (5.2)% 19.9% 8.9% Corereturnonaveragetangiblecommonequity (1) 22.3% 22.2% 19.3% 22.4% 20.5% Netinterestmargin 2.87% 2.81% 2.45% 2.73% 2.45% Coreefficiencyratio (1) 65.4% 62.8% 65.6% 64.3% 63.8% (1) Seetable"ReconciliationofUSGAAPResultstoCoreEarnings"belowforreconciliationofUSGAAPresultstonon-GAAPmeasures 3

7 Balance Sheet As at (in $ millions) December 31, 2017 December 31, 2016 Cashduefrombanks 1,535 2,102 Securitiespurchasedunderagreementtoresell Short-terminvestments Investmentsinsecurities 4,706 4,400 Loans,netofallowanceforcreditlosses 3,777 3,570 Premises,equipmentandcomputersoftware Goodwillandintangibles Otherassets Total assets 10,779 11,104 Totaldeposits 9,536 10,034 Otherliabilities Long-termdebt Total liabilities 9,956 10,393 Commonshareholders equity Total shareholders' equity Total liabilities and shareholders' equity 10,779 11,104 Key Balance Sheet Ratios: December 31, 2017 December 31, 2016 Commonequitytier1capitalratio 18.2% (1) 15.3% (1) Tier1capitalratio 18.2% (1) 15.3% (1) Totalcapitalratio 19.9% (1) 17.6% (1) Leverageratio 6.9% (1) 5.8% (1) Risk-WeightedAssets(in$millions) 4, ,365.4 Risk-WeightedAssets/TotalAssets 39.5% 39.3% Tangiblecommonequityratio 7.1% 5.9% Non-accrualloans/grossloans 1.2% 1.3% Non-performingassets/totalassets 0.4% 0.5% Totalcoverageratio 80.9% 91.3% Specificcoverageratio 31.1% 24.2% (1) EffectiveJanuary1,2016,theBank sregulatorycapitalisdeterminedinaccordancewithcurrentbaseliiiguidelinesissuedbythebma.baseliiiadoptscommonequitytier1( CET1 )asthe predominantformofregulatorycapitalwiththecet1ratioasanewmetric.baseliiialsoadoptsthenewleverageratioregime,whichiscalculatedbydividingtier1capitalbyanexposuremeasure. Theleverageexposuremeasureconsistsoftotalassets(excludingitemsdeductedfromTier1capital)andcertainoffbalancesheetitemsconvertedintocreditexposureequivalentsaswellasadjustments forderivativestoreflectcreditandotherrisks. YEARENDEDDECEMBER31,2017COMPAREDTOTHEYEARENDEDDECEMBER31,2016 NetIncome Net income for the year ended December 31, 2017 was $153.3 million, up $37.3 million from $115.9 million in the prior year. The $37.3 million increase in net income in the year ended December 31, 2017 was due principally to the following: $31.3 million increase in net interest income before provision for credit losses, principally from interest earned on the investment portfolio, where the average volume increased by $633.3 million and yields increased by 26 basis points; $10.4 million increase in non-interest income, principally from increases in banking services fees which were the result of increased credit card transaction volumes as well as increases in asset management fees from rate adjustments on the Money Market funds; $10.2 million decrease in provisions for credit losses, principally from lower general provisioning rates; $2.5 million loss on valuation of a foreclosed property included within other real estate owned; $13.3 million increase in salaries and other employee benefits, due principally to increases in the cost of post-retirement healthcare, increased discretionary bonus costs and some redundancy costs; 4

8 $8.3 million increase in professional and outside services costs, due principally to costs associated with the first year implementation of the Sarbanes- Oxley ("SOX") compliance program, as well as investments in other regulatory compliance; and $7.2 million decrease in the remaining non-interest expense items, due to a decrease in restructuring costs, decreased technology costs resulting from a renegotiated contract with a services provider, and lower premises costs resulting from decreased depreciation on physical assets, partially offset by an increase in indirect taxation due to a new asset-based tax and increased payroll tax rates in Bermuda, as well as increased marketing costs associated with the America's Cup in Bermuda. Non-CoreItems Non-core items 1 resulted in net losses of $5.6 million in the year ended December 31, 2017, a decrease of $17.1 million from net losses and expenses of $22.7 million in the prior year. Non-core items 1 for the year comprised principally: $2.6 million in gains from the Avenir (SIV) pass-through note liquidation settlement; $2.0 million of costs associated with the secondary offering completed during the first quarter, principally comprised of professional fees; $2.0 million of professional and outside services expenses associated with potential acquisition negotiations and documentation; $1.8 million of restructuring charges, which represent professional fees and staff severance amounts incurred during the course of the orderly wind-down of the deposit taking and investment management businesses in the UK; and $2.1 million of expenses associated with an internal review and account remediation program of US-person account holders. Management does not believe that the expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business. QUARTERENDEDDECEMBER31,2017COMPAREDWITHTHEQUARTERENDEDDECEMBER31,2016 NetIncome Net income for the quarter ended December 31, 2017 was $40.3 million, up $4.9 million from $35.4 million in the same quarter in the prior year. The $4.9 million increase in net income in the quarter ended December 31, 2017 was due principally to the following: $9.3 million increase in net interest income before provision for credit losses, principally from interest earned on the investment portfolio from increased volumes and rates, as well as increased interest earned on loans from the impact of repricing base rates in certain jurisdictions during 2017 which increased yields; $4.5 million decrease in provisions for credit losses, principally from lower general provisioning rates; $3.6 million increase in non-interest income, principally from higher volumes of foreign exchange and credit card transactions; $8.3 million increase in salaries and other employee benefits costs due to increased discretionary compensation costs as well as increased costs associated with a post-retirement healthcare plan; $2.6 million increase in professional and outside services costs due to costs associated with the first year of SOX compliance and continued investments in regulatory compliance; and $2.3 million decrease in the remaining non-interest expense items, due to a decrease in restructuring costs and lower insurance-related expenses. Non-CoreItems Non-core items 1 resulted in net losses of $1.9 million in the quarter ended December 31, 2017, a slight increase from net losses of $1.7 million in the same quarter in the prior year. Non-core items 1 for the period comprised principally: $1.0 million of professional and outside services expenses associated with potential acquisitions; 1 Seetable"ReconciliationofUSGAAPResultstoCoreEarnings"belowforreconciliationofUSGAAPresultstonon-GAAPmeasures 5

9 $0.3 million of restructuring charges, which represent professional fees incurred during the course of the orderly wind-down of the deposit taking and investment management businesses in the UK; and $0.6 million of expenses associated with an internal review and account remediation program of US-person account holders. Management does not believe that the expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business. BALANCESHEETCOMMENTARYATDECEMBER31,2017COMPAREDWITHDECEMBER31,2016 TotalAssets Total assets of the Bank were $10.8 billion at December 31, 2017, down $0.3 billion from December 31, The Bank maintained a highly liquid position at December 31, 2017, with $5.3 billion of cash and demand deposits with banks, reverse repurchase agreements and short and long-term investments, excluding held-to-maturity investments, representing 49.1% of total assets, compared with 55.0% at December 31, LoansReceivable The loan portfolio totaled $3.8 billion at December 31, 2017, a slight increase from 2016, as new residential mortgages loans, principally loans underwritten in the UK, were partially offset by paydowns in commercial lending. Allowance for credit losses at December 31, 2017 totaled $35.5 million, a decrease of $8.8 million from year-end The movement was due to lower general provisioning rates as credit conditions have stabilized or improved. The loan portfolio represented 35.0% of total assets at December 31, 2017 (December 31, 2016: 32.2%), whilst loans as a percentage of customer deposits increased from 35.7% at year-end 2016 to 39.7% at December 31, 2017, both of which are due to an increase in the loans portfolio and slightly lower customer deposits. As of December 31, 2017, the Bank had gross non-accrual loans of $43.9 million, representing 1.2% of total gross loans, a slight decrease from the $48.5 million, or 1.3%, of total loans at year-end Net non-accrual loans were $30.2 million, equivalent to 0.8% of net loans. The Bank continues to engage proactively with customers who experience financial difficulty. InvestmentinSecurities The investment portfolio was $4.7 billion at December 31, 2017, compared to $4.4 billion at December 31, The increased portfolio size was driven principally by a greater allocation of assets to the held-to-maturity portfolio, which increased $0.3 billion through the purchase of US government and federal agency securities in the second half The investment portfolio was made up of high quality assets with 98.7% invested in A-or-better-rated securities. The investment yield increased slightly from the previous year to 2.22% as at December 31, Total net unrealized losses were $19.2 million, compared to $36.4 million at year-end The decrease in unrealized losses is attributable largely to stable duration and a flatter yield curve. Deposits Average deposits were $9.8 billion for the year ended December 31, 2017 and The cost of deposits was stable from the previous year at 11 basis points. 6

10 AverageBalanceSheet 1 Fortheyearended December31,2017 December31,2016 (in$millions) Average balance ($) Interest ($) Average rate (%) Average balance ($) Interest Assets Cashduefrombanks,short terminvestmentsandsecurities purchasedunderagreementtoresell 2, ($) Average rate (%) 2, Investmentinsecurities 4, , Trading Available-for-sale 3, , Held-to-maturity 1, Loans 3, , Commercial 1, , Consumer 2, , Interest earning assets 10, , Otherassets Total assets 10, , Liabilities Deposits 7,445.0 (10.9) (0.15) 7,733.7 (11.8) (0.15) Securitiessoldunderagreementtorepurchase 16.0 (0.1) (0.73) Long-termdebt (5.0) (4.24) (4.5) (3.84) Interest bearing liabilities 7,562.0 (15.9) (0.21) 7,866.8 (16.4) (0.21) Non-interestbearingcurrentaccounts 2, ,042.6 Otherliabilities Total liabilities 10,209.6 (15.9) (0.16) 10,033.0 (16.4) (0.16) Shareholders equity Total liabilities and shareholders equity 10, ,860.4 Non interestbearingfundsnetof non interestearningassets(freebalance) 3, ,650.3 Net interest margin Averages are based upon a daily averages for the periods indicated. AssetsUnderAdministrationandAssetsUnderManagement Total assets under administration for the trust and custody businesses were $95.4 billion and $27.5 billion, respectively, whilst assets under management were $5.0 billion as at December 31, This compares with $98.0 billion, $24.7 billion and $4.7 billion, respectively, at December 31,

11 ReconciliationofUSGAAPResultstoCoreEarnings The table below shows the reconciliation of net income in accordance with US GAAP to core earnings, a non-gaap measure, which excludes certain significant items that are included in our US GAAP results of operations. We focus on core net income, which we calculate by adjusting net income to exclude certain income or expense items that are not representative of our business operations, or non-core. Core net income includes revenue, gains, losses and expense items incurred in the normal course of business. We believe that expressing earnings and certain other financial measures excluding these non-core items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Bank and predicting future performance. We believe that presentation of these non-gaap financial measures will permit investors to assess the performance of the Bank on the same basis as management. Core Earnings Three months ended Year ended (in $ millions except per share amounts) December 31, 2017 September 30, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Net income Dividendsandguaranteefeeofpreferenceshares (3.4) (15.7) Premiumpaidonpreferencesharesredeemedforcancellation (41.9) (41.9) Net income to common shareholders (9.9) Non-core items Non-core (gains) losses Gainondisposalofapass-throughnoteinvestment(formerlyaSIV) (2.5) (0.6) (2.6) (0.6) Adjustmenttoholdbackpayableforapreviousbusinessacquisition Totalnon-core(gains)losses (2.4) 0.1 (2.5) 0.3 Non-core expenses Earlyretirementprogram,redundanciesandothernon-corecompensation costs Taxcompliancereviewcosts Provisioninconnectionwithongoingtaxcompliancereview 0.7 Businessacquisitioncosts Restructuringchargesandrelatedprofessionalservicefees Costof2010legacyoptionplanvestingandrelatedpayrolltaxes 8.8 Secondaryofferingcosts 2.0 Totalnon-coreexpenses Total non-core items 1.9 (0.4) Core net income Core net income attributable to common shareholders Averageshareholders'equity Less:averagepreferenceshareholders'equity (137.1) (168.8) Averagecommonequity Less:averagegoodwillandintangibleassets (60.9) (61.3) (62.9) (61.4) (58.6) Averagetangiblecommonequity Core earnings per share fully diluted Return on common equity 19.7% 20.7% (5.2)% 19.9% 8.9% Core return on average tangible common equity 22.3% 22.2% 19.3% 22.4% 20.5% Non-interestexpenses Less:non-coreexpenses (1.9) (2.0) (1.6) (8.1) (22.4) Less:amortizationofintangibles (1.1) (1.0) (1.0) (4.2) (4.5) Corenon-interestexpensesbeforeamortizationofintangibles Corerevenuebeforeothergainsandlossesandprovisionforcreditlosses Core efficiency ratio 65.4% 62.8% 65.6 % 64.3% 63.8% 8

12 ConferenceCallInformation Butterfield will host a conference call to discuss the Bank s results on Thursday, February 15, 2018 at 10:00 a.m. EST. Callers may access the conference call by dialing +1 (844) (tollfree) or +1 (412) (international) ten minutes prior to the start of the call. A live webcast of the conference call, including a slide presentation, will be available in the investor relations section of Butterfield s website at A replay of the call will be archived on the Butterfield website thereafter. AboutNon-GAAPFinancialMeasures: Certain statements in this release involve the use of non-gaap financial measures. 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. Forward-LookingStatements: Certain of the statements made in this Release 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. 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 forwardlooking statements due to a variety of factors, including worldwide economic conditions, 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. 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. All 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 Securities and Exchange Commission ( SEC ) reports and filings. Such reports are available upon request from the Bank, or from the SEC, including through the SEC s Internet website at We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made other than as required by law. AboutButterfield: Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from six jurisdictions: Bermuda, the Cayman Islands and Guernsey, where our principal banking operations are located; and The Bahamas, Switzerland and the United Kingdom, where we offer specialized financial services. Banking services comprise retail and corporate banking. Wealth management services are composed of trust, private banking, and asset management. In Bermuda and the Cayman Islands, we offer both banking and wealth management. In Guernsey, The Bahamas and Switzerland, we offer wealth management. In the UK, we offer residential property lending. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: InvestorRelationsContact: MediaRelationsContact: Noah Fields Mark Johnson Investor Relations Group Head of Communications The Bank of N.T. Butterfield & Son Limited The Bank of N.T. Butterfield & Son Limited Phone: (441) Phone: (441) Fax : (441) Cell: (441) noah.fields@butterfieldgroup.com Fax: (441) mark.johnson@butterfieldgroup.com 9

13 FourthQuarterandYear-End2017EarningsPresentationTheBankofN.T.Butterfield&SonLimitedFebruary15,2018

14 2Forward-LookingStatementsForward-LookingStatements:Certainofthestatementsmadeinthispresentationare forward-lookingstatements withinthemeaningandprotectionsofsection27aofthesecuritiesactof1933,asamended,andsection21eofthesecuritiesexchangeactof1934,asamended.forward-lookingstatementsincludestatementswithrespecttoourcurrentbeliefs,plans,objectives,goals,expectations,anticipations,assumptions,estimates,intentions,andfutureperformance,andinvolveknownandunknownrisks,uncertaintiesandotherfactors,whichmaybebeyondourcontrol,andwhichmaycauseouractualresults,performance,capital,ownershiporachievementstobemateriallydifferentfromfutureresults,performanceorachievementsexpressedorimpliedbysuchforward-lookingstatements.ourperformancemayvaryduetoavarietyoffactors,includingworldwideeconomicconditions,successinbusinessretentionandobtainingnewbusinessandotherfactors.allstatementsotherthanstatementsofhistoricalfactarestatementsthatcouldbeforward-lookingstatements.youcanidentifytheseforward-lookingstatementsthroughouruseofwordssuchas may, will, anticipate, assume, should, indicate, would, believe, contemplate, expect, estimate, continue, plan, pointto, project, could, intend, target andothersimilarwordsandexpressionsofthefuture.allwrittenororalforward-lookingstatementsattributabletousareexpresslyqualifiedintheirentiretybythiscautionarynotice,including,withoutlimitation,thoserisksanduncertaintiesdescribedinoursecuritiesandexchangecommission( SEC )reportsandfilings.suchreportsareavailableuponrequestfromthebank,orfromthesec,includingthroughthesec sinternetwebsiteathttp:// core netincomeandotherfinancialmeasurespresentedona core basis.webelievesuchmeasuresprovideusefulinformationtoinvestorsthatissupplementarytoourfinancial condition,resultsofoperationsandcashflowscomputedinaccordancewithgaap;however,ournon-gaapfinancialmeasureshaveanumberoflimitations.assuch,investorsshouldnotviewthesedisclosuresasasubstituteforresultsdeterminedinaccordancewithgaap,andtheyarenotnecessarilycomparabletonon-gaapfinancialmeasuresthatothercompaniesuse.reconciliationsofthesenon-gaapmeasurestocorrespondinggaapfinancialmeasuresareprovidedintheappendixofthispresentation.allinformationin$millionsandasofdecember31,2017unlessotherwiseindicated.conversionrate:1bmd$=1us$.

15 3FourthQuarterandYear-End2017EarningsCallPresentersAgendaSixInternationalLocationsButterfieldOverviewMichaelCollinsChairmanandChiefExecutiveOfficerMichaelSchrumChiefFinancialOfficerDanFrumkinChiefOperatingOfficer LeadingBankinAttractiveMarkets StrongCapitalGenerationandReturn Efficient,ConservativeBalanceSheet VisibleEarnings Overview Financials Summary Q&AAwards

16 42017Highlights $76.6$106.4$113.9$138.6$158.9CoreNetIncome* %14.4%17.6%20.5%22.4%CoreReturnonAverageTangibleCommonEquity*vs $%NetInterestIncome$289.7$ %Non-InterestIncome (1.2)%Prov.forCreditLosses (228.8)%Non-InterestExpenses**(301.4)(14.8)(2.2)%OtherGains(Losses)1.30.3(11.6)%NetIncome$153.3$ %Non-CoreItems*5.6(17.0)(128.6)%CoreNetIncome*$158.9$ %*SeetheAppendixforareconciliationofthenon-GAAPmeasure**Includesincometaxes Recordnetincomeof$153.3million,or$2.76pershare CoreNetIncome*of$158.9million,or$2.86pershare NetInterestMarginof2.73%,costofdepositsof0.11% Returnonaveragecommonequityof19.9%;corereturnonaveragetangiblecommonequity*of22.4% AcquiredGlobalTrustSolutionsbusinessfromDeutscheBank AnnouncedmajoracquisitionofDeutscheBank sbankingbusinessesincaymanandchannelislands;expectedtoclosebeforetheendof2018(announcedfebruary15,2018) Increasedcommonsharedividendandauthorizedsharerepurchaseprogram(AnnouncedFebruary15,2018)

17 Financials

18 6FourthQuarter2017HighlightsQ4Q1Q2Q3Q4Q1Q2Q3Q4$61.2$66.8$74.3$76.1NetInterestIncomebeforeProvisionforCreditLosses-TrendQ42017vs.Q32017Avg.BalanceYieldAvg.BalanceYieldCash,S/TInv.&Repos$2, %$(105.8)0.05%Investments4, % %Loans(net)3, % %InterestEarningAssets10, %19.7TotalLiabilities10,040.1(0.17)%(1.9)(0.02)%NetInterestMargin2.87%0.06%NetInterestMargin&Yields vs.Q32017vs.Q42016Q42017$%$%NetInterestIncome$76.1$1.83.9%$ %Non-InterestIncome (1.2)%3.65.4%Prov.forCreditLosses5.44.7(228.8)%4.5(315.3)%Non-InterestExpenses*(80.8)(7.0)(2.2)%(8.9)(4.8)%OtherGains(Losses)(2.7)(4.5)(11.6)%(3.5)181.3%NetIncome$40.3$(0.8)(2.0)%$ %Non-CoreItems**1.92.3(128.6)%0.1(104.5)%CoreNetIncome**$42.2$1.53.7%$ % Netincomeof$40.3million,or$0.72pershare CoreNetIncome**of$42.2million,or$0.76pershare NetInterestMarginof2.87%,costofdepositsof0.12% Returnonaveragecommonequityof19.7%;corereturnonaveragetangiblecommonequity**of22.3% Commonsharedividendincreased18.8%to$0.38pershare*** AnnouncedtheacquisitionofGlobalTrustSolutionsfromDeutscheBank Strongrevenuefrommarginexpansionandloangrowth,offsetbyincreasedSOXandperformancebonusexpenses*Includesincometaxes**SeetheAppendixforareconciliationofthenon-GAAPmeasure***Announcedsubsequenttoquarter-end

19 7IncomeStatementNon-InterestIncomeNon-InterestIncomeTrendvs.Q32017Q4$%Assetmanagement$6.6$0.33.9%Banking %FXRevenue %Trust %CustodyandOther %Other %TotalNon-InterestIncome$42.4$ %Non-InterestIncomeFeeIncomeRatioQ4Q1Q2Q3Q4Q1Q2Q3Q4$37.3$38.8$38.2$ % Non-interestincomegrewsignificantlyacrossallbusinesslines BankingandFXRevenuegrowthsawlargestincreaseswithseasonalpromotions Stableandcapitalefficientnon-interestincomeacrossdiversifiedfeegeneratingbusinesses Feeincomeratioof34.2%remainswellabovepeers*andincreasesreturnsonequity *IncludesUSbanksidentifiedbymanagementasapeergroup.PleaseseetheAppendixforalistofthesebanks.

20 8IncomeStatementNon-InterestExpensesNon-InterestExpenseTrend***CoreNon-InterestExpenses*vs.Q32017Q4$%Salaries&Benefits$42.2$5.00.3%Technology&Comm (1.5)%Property4.5(0.6)(3.8)%Professional&O/SServices6.71.1(1.8)%IndirectTaxes %IntangibleAmortization1.1 (9.1)%Marketing1.50.6(62.5)%Other**3.9(0.2)(12.5)%TotalCoreNon-InterestExpenses*$78.9$ %Non-CoreExpenses*1.9(0.1)(42.4)%Non-InterestExpenses***$80.8$7.09.5%Non-InterestExpensesCoreEfficiencyRatioQ4Q1Q2Q3Q4Q1Q2Q3Q4$87.9$71.9$73.8$ %65.6%62.8%65.4% ExpensespressuredbyacceleratedSarbanes-Oxley-relatedcosts,investmentincompliancesystemsandprocesses,andyear-endincreaseinperformancerelatedbonusaccrual SomecoreofficesetupcostsincurredinthequarterinanticipationoftheSingaporeGlobalTrustSolutionsacquisition Non-coreexpensesrelatedprimarilytoacquisitionofGlobalTrustSolutions Cost/incomeratiosexpectedtonormalizeintheshorttermonexistingbusinesses *SeetheAppendixforareconciliationofthenon-GAAPmeasure.**IncludesOtherNon-InterestExpensesandIncomeTaxes***IncludesIncomeTaxes

21 9CapitalRequirementsandReturnLeverageCapital Capitalmanagementremainsconservativeandhascapacityforfurtheracquisitions Boardapproved18.8%increaseinquarterlycashdividendto$0.38percommonshare Sharerepurchaseprogramofonemillionsharesannounced LeveragecapitalbelowpeermedianbutremainsatthehighendoftargetcapitalrangeRegulatoryCapital(BaselIII)-TotalCapitalRatioButterfieldCurrentBMA2017RequiredUSPeerAverage*19.9%14.9%15.1%*IncludesUSbanksidentifiedbymanagementasapeergroup.PleaseseetheAppendixforalistofthesebanks.TCE/TATCE/TAExCashButterfield-CurrentUSPeerMedian*7.1%8.2%1.2%0.6%8.3%8.8%

22 10BalanceSheetTotalAssets LoanbalancesincreasedwithanewsovereignloanandgrowthinUKresidentialmortgages Cashbalancesslightlylowerasopportunitiesinlongerdurationassetsbegantomaterializewithimprovingyieldenvironment Costofdepositsincreasedbyonly2basispointsto0.12%Q42017Q32017Cash&Equivalents$1,535$1,546S/TInv.&ReverseRepos429418Loans(net)3,7773,664Investments4,7064,613OtherAssets332338TotalAssets$10,779$10,578Int.BearingDeposits$7,056$7,036Non-Int.BearingDeposits2,4802,371OtherLiabilities420368ShareholdersEquity823802TotalLiab.&Equity$10,779$10,578TotalassetsInvestmentsLoansQ4Q1Q2Q3Q4Q1Q2Q3Q4$10.3$11.1$10.6$10.8$3.2$4.4$4.6$4.7$4.0$3.6$3.7$3.8TotaldepositsNon-interestbearingInterestbearingCostofdepositsQ4Q1Q2Q3Q4Q1Q2Q3Q4$9.2$10.0$9.4$ %0.10%0.10%0.12% TotalDeposits

23 11AssetQualityNon-AccrualLoansNon-AccrualLoansQ4Q1Q2Q3Q4Q1Q2Q3Q4$65.3$48.5$48.7$43.9ResMtg:65.4%Consumer:4.9%Comm lr/e:15.4%othercomm l:10.3%gov t:4.0%loandistribution %0.3%0.2%0.1%0.0%q4q1q2q3q4q1q2q3q40.04%0.11%0.02%0.04%netcharge-offratioaaa:93.3%aa:1.2%a:4.2%bbb:1.3%$3.8billion$4.7billioninvestmentportfolioratingdistribution

24 12InterestRateSensitivityInterestRateSensitivity**AverageBalance-BalanceSheetAverageBalances($bn)Q42017vs.Q32017Durationvs.Q32017Cash1,936.2(116.4)N/AN/AS/TInvest AFS3, (0.1)HTM1, (0.2)Total6,772.6(30.2)NTBUSPeerMedian*-100bps+100bps+200bps(13.8)%6.0%11.7%(6.4)%4.5%6.0% TheBankremainssignificantlymoresensitivetoincreasesininterestratesrelativetoitsUSpeers* Averagedepositbalancesvaryfromquartertoquarterdependingonclientrequirements Improvingrateenvironmentcontinuestobenefitassetsensitivepositioning*IncludesUSbanksidentifiedbymanagementasapeergroup.PleaseseetheAppendixforalistofthesebanks.**Theseprojectionspresenttheestimatedchangeinnetinterestincomeassuminggradualparallelshiftsoftheyieldcurveinevenincrementsoverthefirsttwelvemonths,followedbyratesheldconstantthereafter.

25 SummaryQ&AAppendices

26 14AppendixBalanceSheetTrends Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1AssetsCash&Equivalents$1,535$1,546$1,720$1,867$2,102$1,485$2,655$1,774$2,289$2,262$2,101$2,060ReverseRepos S/TInvestments Investments4,7064,6134,5584,5494,4004,1143,8703,6793,2243,2863,2453,086Loans,Net3,7773,6643,5883,5733,5703,8363,9043,9534,0003,9743,9773,922OtherAssets TotalAssets$10,779$10,578$10,679$10,944$11,104$10,979$11,287$10,186$10,276$10,217$10,070$9,800LiabilitiesandEquityTotalDeposits$9,536$9,407$9,479$9,849$10,034$9,667$10,091$8,939$9,182$9,111$9,001$8,600Long-TermDebt OtherLiabilities TotalLiabilities$9,956$9,776$9,909$10,203$10,393$10,014$10,471$9,399$9,526$9,443$9,331$8,929CommonEquity$823$802$770$741$711$782$633$604$567$591$556$688PreferredEquity TotalEquity$823$802$770$741$711$965$816$787$750$774$739$871TotalLiabilitiesandEquity$10,779$10,578$10,679$10,944$11,104$10,979$11,287$10,186$10,276$10,217$10,070$9,800KeyMetricsTCE/TA7.1%7.0%6.7%6.2%5.9%6.6%5.0%5.5%5.1%5.3%5.0%6.5%CET1Ratio18.2%17.8%17.0%15.8%15.3%16.1%12.3%12.4%N/AN/AN/AN/ATotalTier1CapitalRatio18.2%17.8%17.0%15.8%15.3%20.5%16.5%16.4%16.2%15.8%15.6%17.9%TotalCapitalRatio19.9%19.9%19.1%17.9%17.6%22.9%18.9%18.7%19.0%18.6%18.5%20.8%

27 15AppendixAverageBalanceSheetTrends2017-Q42017-Q32017-Q2AssetsAveragebalance($)Interest($)Averagerate(%)Averagebalance($)Interest($)Averagerate(%)Averagebalance($)Interest($)Averagerate(%)Cashduefrombanks,reverserepurchaseagreementsandshort-terminvestments$2,135.8$ %$2,241.5$ %$2,636.9$ %Investmentinsecurities4, %4, %4, %Trading1.3 %0.8 %0.8 %AFS3, %3, %3, %HTM1, %1, %1, %Loans3, %3, %3, %Commercial1, %1, %1, %Consumer2, %2, %2, %Totalinterestearningassets10, %10, %10, %Otherassets Totalassets$10,830.9$ %$10,813.5$ %$11,142.4$ %LiabilitiesInterestbearingdeposits$7,222.4$(3.0)(0.16)%$7,255.3$(2.5)(0.14)%$7,635.2$(2.7)(0.14)%Customerdemanddeposits5,149.5(0.2) %5,274.1 %5,536.7(0.2)(0.01)%Customertermdeposits2,061.6(2.3)(0.46)%1,967.0(2.3)(0.47)%2,089.6(2.4)(0.46)%Depositsfrombanks11.3(0.5)(18.60)%14.3(0.1)(2.65)%8.8(0.1)(2.70)%Long-termdebt117.0(1.3)(4.34)%117.0(1.3)(4.26)%117.0(1.2)(4.20)%Interestbearingliabilities7,339.4(4.3)(0.23)%7,372.3(3.7)(0.20)%7,752.2(3.9)(0.20)%Non-interestbearingcustomerdeposits2,446.92,413.92,377.6Otherliabilities Totalliabilities$10,040.1$(4.3)(0.17)%$10,042.0$(3.7)(0.15)%$10,380.9$(3.9)(0.15)%Shareholders equity totalliabilitiesandshareholders equity$10,830.9$10,813.5$11,142.4non-interestbearingfundsnetofnon-interestearningassets(freebalance)$3,166.1$3,113.4$3,030.7netinterestmargin$ %$ %$ %

28 16AppendixIncomeStatementTrends Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1NetInterestIncome$76.1$74.3$71.5$67.9$66.8$65.0$64.3$62.3$61.2$60.0$59.3$58.8Non-InterestIncome Prov.forCreditRecovery(Losses)5.40.7(0.5)0.30.9(0.3)(5.3)0.3(2.6)(0.9)(2.0)(0.2)Non-InterestExpenses OtherGains(Losses)(2.7) (0.2)(0.2)(10.3)3.1(3.2)1.0NetIncome$40.3$41.1$36.1$35.9$35.4$24.0$29.8$26.8$(2.3)$28.8$23.3$28.0Non-CoreItems*$1.9$(0.4)$1.4$2.6$1.7$9.4$2.3$9.2$30.1$0.5$4.5$1.0CoreNetIncome$42.2$40.7$37.5$38.5$37.1$33.4$32.1$36.0$27.8$29.3$27.8$29.0KeyMetricsLoanYield5.23%5.16%5.11%4.90%4.92%4.75%4.72%4.74%4.63%4.61%4.66%4.63%SecuritiesYield Costofdeposits NetInterestMargin CoreEfficiencyRatio* CoreROATCE* FeeIncomeRatio FullyDilutedShareCount(inmillionsofcommonshares) *SeetheAppendixforareconciliationofthenon-GAAPmeasure.

29 17AppendixNon-InterestIncome&ExpenseTrends Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Non-InterestIncomeTrust$11.3$10.9$11.3$11.4$11.5$11.6$10.8$10.1$10.3$9.9$10.2$10.0AssetManagement Banking FXRevenue Custody&OtherAdmin Other TotalNon-InterestIncome$42.4$38.2$38.7$38.5$38.8$36.3$37.9$34.5$37.3$34.2$34.5$34.1Non-InterestExpenseSalaries&Benefits$42.4$37.4$37.4$36.0$34.2$42.4$32.2$31.2$37.8$32.1$32.3$32.7Technology&Comm Property Professional&O/SServices IndirectTaxes IntangibleAmortization Marketing Restructuring Other TotalNon-InterestExpense$80.4$73.6$75.3$71.0$71.9$77.3$66.7$69.9$87.2$67.4$65.1$65.5IncomeTaxes TotalExpenseincld.Taxes$80.8$73.8$75.6$71.2$71.9$77.5$67.0$70.2$87.9$67.6$65.3$65.7

30 18AppendixCoreNon-InterestExpenseTrends Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Salaries&Benefits$42.2$37.2$37.1$35.9$34.0$33.6$31.5$29.6$31.0$31.4$32.1$31.8Technology&Comm Property Professional&O/SServices IndirectTaxes IntangibleAmortization Marketing Other TotalCoreNon-InterestExpense$78.5$71.6$73.9$68.4$70.2$67.3$64.4$61.5$63.8$64.2$63.7$63.2IncomeTaxes TotalCoreExpenseincld.Taxes$78.9$71.8$74.2$68.6$70.2$67.5$64.6$61.8$64.5$64.4$63.9$63.4

31 19AppendixNon-GAAPReconciliation(inmillionsofUSDollars,unlessotherwiseindicated) Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1NetincomeA$40.3$41.1$36.1$35.9$35.4$24.0$29.8$26.8$(2.3)$28.8$23.3$28.0Dividendsandguaranteefeeofpreferenceshares (3.4)(4.1)(4.1)(4.1)(4.1)(4.1)(4.1)(4.1)PremiumpaidonrepurchaseofpreferencesharesB (41.9) NetincometocommonshareholdersC (9.9) (6.5) Non-core(gains),lossesandexpensesNon-core(gains)lossesGainondisposalofapass-throughnoteinvestment(formerlyaSIV) (2.5) (0.1)(0.6) Impairmentofandgainondisposaloffixedassets(includingsoftware) 5.1 (0.2)Changeinunrealized(gains)lossesoncertaininvestments 1.7(3.0)3.0(1.2)Adjustmenttoholdbackpayableforapreviousbusinessacquisition (0.7) 0.9 Totalnon-core(gains)lossesD$ $(2.4)$ $ $0.1$(0.7)$ $0.9$6.8$(3.0)$3.0$(1.4)Non-coreexpensesEarlyretirementprogram,redundanciesandothernon-corecompensation Taxcompliancereviewcosts Provisioninconnectionwithongoingtaxcompliancereview Businessacquisitioncosts Restructuringchargesandrelatedprofessionalservicefees Investigationofaninternationalstockexchangelistingcosts Costof2010legacyoptionplanvestingandrelatedpayrolltaxes 8.8 Secondaryofferingcosts 2.0 Totalnon-coreexpensesE$1.9$2.0$1.4$2.6$1.6$10.1$2.3$8.3$23.4$3.5$1.5$2.4Totalnon-core(gains),lossesandexpensesF=D+E1.9(0.4) CorenetincomeG=A+F$42.2$40.7$37.5$38.5$37.1$33.4$32.1$36.0$27.9$29.3$27.8$29.0CorenetincomeattributabletocommonshareholdersH=C-B Averageshareholders'equity Less:averagepreferenceshareholders'equity (137.1)(182.9)(182.9)(182.9)(182.9)(182.9)(182.9)(182.9)AveragecommonequityI Less:averagegoodwillandintangibleassets(60.9)(61.3)(61.6)(61.7)(62.9)(65.5)(57.4)(49.5)(52.6)(54.6)(55.3)(56.4)AveragetangiblecommonequityJ ReturnonequityC/I19.7%20.7%19.0%19.9%(5.2)%11.7%16.7%15.4%(4.4)%17.1%12.9%14.1%CorereturnonaveragetangiblecommonequityH/J22.3%22.2%21.6%23.4%19.3%19.0%20.1%23.7%17.8%19.3%17.6%16.0%CoreearningspercommonsharefullydilutedAdjustedweightedaveragenumberofdilutedcommonsharesK EarningspercommonsharefullydilutedC/K (0.19) (0.14) Non-coreitemspershare(F-B)/K0.04(0.01) Coreearningspercommonsharefullydiluted

32 20AppendixNon-GAAPReconciliation(cont d)(inmillionsofusdollars,unlessotherwiseindicated) q4q3q2q1q4q3q2q1q4q3q2q1corereturnonaveragetangibleassetstotalaverageassetsl$10,851.0$10,744.8$10,981.8$10,982.6$11,106.3$11,207.4$10,794.8$10,243.3$10,083.5$10,102.8$9,870.8$9,859.0less:averagegoodwillandintangibleassets(60.9)(61.3)(61.6)(61.7)(62.9)(65.5)(57.4)(49.5)(52.6)(54.6)(55.3)(56.4)averagetangibleassetsm$10,790.1$10,683.5$10,920.2$10,920.8$11,043.4$11,141.8$10,737.3$10,193.8$10,030.8$10,048.1$9,815.4$9,802.7returnonaverageassetsa/l1.5%1.5%1.3%1.3%1.3%0.9%1.1%1.0%(0.1)%1.1%1.0%1.2%corereturnonaveragetangibleassetsg/m1.6%1.5%1.4%1.5%1.3%1.2%1.2%1.4%1.1%1.2%1.1%1.2%tangibleequitytotangibleassetsshareholders'equity$822.9$802.4$769.9$741.0$710.7$964.7$815.9$786.9$750.4$773.9$739.0$871.5less:goodwillandintangibleassets(60.6)(61.4)(61.5)(61.4)(61.9)(64.6)(66.4)(49.1)(51.1)(53.3)(56.0)(54.7)tangibletotalequityn less:preferenceshareholders'equity (182.9)(182.9)(182.9)(182.9)(182.9)(182.9)(182.9)TangiblecommonequityO Totalassets10, , , , , , , , , , ,069.89,800.3Less:goodwillandintangibleassets(60.6)(61.4)(61.5)(61.4)(61.9)(64.6)(66.4)(49.1)(51.1)(53.3)(56.0)(54.7)TangibleassetsP$10,718.6$10,517.0$10,617.2$10,882.2$11,041.6$10,913.9$11,220.8$10,136.5$10,224.5$10,163.2$10,013.8$9,745.6TangiblecommonequitytotangibleassetsO/P7.1%7.0%6.7%6.2%5.9%6.6%5.0%5.5%5.1%5.3%5.0%6.5%TangibletotalequitytotangibleassetsN/P7.1%7.0%6.7%6.2%5.9%8.2%6.7%7.3%6.8%7.1%6.8%8.4%EfficiencyratioNon-interestexpenses$80.4$73.6$75.3$71.0$71.9$77.3$66.7$69.9$87.2$67.4$65.1$65.5Less:Amortizationofintangibles1.1(1.0)(1.1)(1.0)(1.0)(1.2)(1.3)(1.1)(1.1)(1.1)(1.1)(1.1)Non-interestexpensesbeforeamortizationofintangiblesQ Non-interestincome Netinterestincomebeforeprovisionforcreditlosses Netrevenuebeforeprovisionforcreditlossesandothergains/lossesR$118.4$112.5$110.2$106.4$105.6$101.3$102.2$96.8$98.5$94.2$93.8$92.9EfficiencyratioQ/R67.0%64.5%67.4%65.7%67.1%75.1%64.0%71.1%87.4%70.4%68.2%69.3%CoreefficiencyratioNon-interestexpenses$80.4$73.6$75.3$71.0$71.9$77.3$66.7$69.9$87.2$67.4$65.1$65.5Less:non-coreexpenses(E)(1.9)(2.0)(1.4)(2.6)(1.6)(10.1)(2.3)(8.3)(23.3)(3.5)(1.5)(2.4)Less:amortizationofintangibles(1.1)(1.0)(1.1)(1.0)(1.0)(1.2)(1.3)(1.1)(1.1)(1.1)(1.1)(1.1)Corenon-interestexpensesbeforeamortizationofintangiblesS Netrevenuebeforeprovisionforcreditlossesandothergains/lossesT CoreefficiencyratioS/T65.4%62.8%66.1%63.2%65.6%65.3%61.8%62.5%63.7%66.8%66.7%66.8%