# EDGAR Filing Document

**Accession Number:** 0001653242
**File Stem:** 0001653242-23-000003
**Filing Date:** 2023-2
**Character Count:** 69864
**Document Hash:** f685e22c57a9573ab08a1acd783f543a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001653242-23-000003.hdr.sgml**: 20230213

**ACCESSION NUMBER**: 0001653242-23-000003

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 29

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230213

**DATE AS OF CHANGE**: 20230213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bank of N.T. Butterfield & Son Ltd
- **CENTRAL INDEX KEY:** 0001653242
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** D0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37877
- **FILM NUMBER:** 23619005

**BUSINESS ADDRESS:**
- **STREET 1:** 65 FRONT STREET
- **CITY:** HAMILTON
- **STATE:** D0
- **ZIP:** HM 12
- **BUSINESS PHONE:** 4412951111

**MAIL ADDRESS:**
- **STREET 1:** 65 FRONT STREET
- **CITY:** HAMILTON
- **STATE:** D0
- **ZIP:** HM 12

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**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, 2023**

**Commission File Number: 001-37877**

**The Bank of N.T. Butterfield & Son Limited**

(Translation of registrant's name into English)

**65 Front Street**

**Hamilton, HM 12**

**Bermuda**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F 🗷 Form 40-F □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): □

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): □

------

**DOCUMENTS INCLUDED AS PART OF THIS FORM 6-K**

Attached hereto (i) as Exhibit 99.1 is the earnings release, (ii) as Exhibit 99.2 is the earnings call presentation, all for The Bank of N.T. Butterfield & Son Limited for the three months and year ended December 31, 2022.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: February 13, 2023 | **THE BANK OF N.T. BUTTERFIELD & SON LIMITED** | **THE BANK OF N.T. BUTTERFIELD & SON LIMITED** |
|  | By: | /s/ Shaun Morris |
|  | Name: | Shaun Morris |
|  | Title: | General Counsel and Group Chief Legal Officer |

---

2 <br> 

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| <u>[99.1](currentearningsrelease.htm)</u> | Earnings release - Fourth quarter and year-end 2022 results |
| <u>[99.2](currentearningsdeck.htm)</u> | Earnings call presentation - Fourth quarter and year-end 2022 results |

---

3 <br> 

## Exhibit 99.1

![newsheaderworkivaa02a.jpg](newsheaderworkivaa02a.jpg)

**Butterfield Reports Fourth Quarter and Full Year 2022 Results** 

**Financial highlights for the fourth quarter of 2022:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Net income of $63.1 million, or $1.26 per share, and core net income**<sup>1</sup> **of $63.2 million, or $1.27 per share**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Return on average common equity of 31.6% and core return on average tangible common equity**<sup>1</sup> **of 34.9%**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Net interest margin of 2.79%, cost of deposits of 0.78%**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Board declares dividend for the quarter ended December 31, 2022 of $0.44 per share** 

**Financial highlights for the full year 2022:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Net income of $214.0 million, or $4.29 per share, and core net income**<sup>1</sup> **of $215.7 million, or $4.33 per share**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Return on average common equity of 25.7%, and core return on average tangible common equity**<sup>1</sup> **of 28.6%** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Net interest margin of 2.41%, cost of deposits of 0.34%** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Active capital management with aggregate quarterly dividends of $1.76 per share**

**Hamilton, Bermuda - February 13, 2023:** The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (BSX: NTB.BH; NYSE: NTB) today announced financial results for the quarter and year ended December 31, 2022.

Net income for the year ended December 31, 2022 was $214.0 million, or $4.29 per diluted common share, compared to $162.7 million, or $3.26 per diluted common share, for the year ended December 31, 2021. Core net income<sup>1</sup> for the year ended December 31, 2022 was $215.7 million, or $4.33 per diluted common share, compared to $163.6 million, or $3.28 per diluted common share, for the year ended December 31, 2021.

The return on average common equity for the year ended December 31, 2022 was 25.7% compared to 16.8% for the year ended December 31, 2021. The core return on average tangible common equity<sup>1</sup> for the year ended December 31, 2022 was 28.6%, compared to 18.7% for the year ended December 31, 2021. The efficiency ratio for the year ended December 31, 2022 was 59.2% compared with 65.9% for the year ended December 31, 2021. The core efficiency ratio<sup>1</sup> for the year ended December 31, 2022 was 58.9% compared with 65.5% for the year ended December 31, 2021.

Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, "Butterfield's results for the full year and fourth quarter of 2022 continued to demonstrate the Bank's strong return profile, which benefited from rising market interest rates, non-interest income growth, and disciplined expense management that helped drive the efficiency ratio below 60%. As we enter 2023, we believe that Butterfield's healthy returns on common equity will continue to support investor returns and overall growth objectives. Our long-standing strategy remains focused on limiting credit exposure in our conservative investment portfolio, growth through targeted acquisitions and thoughtful

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

------

capital management. I was pleased to see tangible book value per common share recover 15.7% during the fourth quarter.

"We have made good progress preparing to onboard clients and new colleagues from our previously announced acquisition of the Credit Suisse trust business in Singapore, Guernsey and The Bahamas. We remain on track to progressively close the transaction during 2023. In terms of capital management, in addition to our quarterly cash dividend, we prioritize capital to support organic growth and the potential for acquisitions, and plan to recommence our share repurchase activity in the first half of 2023 (subject to market conditions). I am pleased that the Board has authorized a new share repurchase program of up to 3.0 million shares. I remain optimistic about Butterfield's continuing success following the proven resilience of our business model across recent interest rate and economic cycles. I am also encouraged by the removal of pandemic-related travel restrictions to our island jurisdictions, which should help to bolster tourism and international business and stimulate local economies. I look forward to working alongside our great teams of people in 2023 and beyond to help clients achieve their financial goals while also enhancing shareholder value."

Net income for the fourth quarter of 2022 was $63.1 million, or $1.26 per diluted common share, compared to net income of $57.4 million, or $1.15 per diluted common share, for the previous quarter and $41.7 million, or $0.84 per diluted common share, for the fourth quarter of 2021. Core net income<sup>1</sup> for the fourth quarter of 2022 was $63.2 million, or $1.27 per diluted common share, compared to $57.6 million, or $1.16 per diluted common share, for the previous quarter and $41.7 million, or $0.84 per diluted common share, for the fourth quarter of 2021.

The return on average common equity for the fourth quarter of 2022 was 31.6% compared to 28.5% for the previous quarter and 17.1% for the fourth quarter of 2021. The core return on average tangible common equity<sup>1</sup> for the fourth quarter of 2022 was 34.9%, compared to 31.6% for the previous quarter and 18.8% for the fourth quarter of 2021. The efficiency ratio for the fourth quarter of 2022 was 55.7%, compared to 57.1% for the previous quarter and 64.7% for the fourth quarter of 2021. The core efficiency ratio<sup>1</sup> for the fourth quarter of 2022 was 55.6% compared with 57.0% in the previous quarter and 64.7% for the fourth quarter of 2021.

Net income increased in the fourth quarter of 2022 versus the prior quarter primarily due to higher market interest rates and increased non-interest income offset by higher non-interest expenses and a moderately higher provision for future expected credit losses due to weaker macroeconomic forecasts and charge-offs on a commercial facility.

Net interest income ("NII") for the fourth quarter of 2022 was $94.6 million, an increase of $3.4 million, compared with NII of $91.2 million in the previous quarter and up $20.1 million from $74.5 million in the fourth quarter of 2021. NII continued to increase during the fourth quarter of 2022 compared to the prior quarter, primarily due to higher margins on loans and treasury assets, which were partially offset by higher deposit costs, particularly in the more competitive Channel Islands markets. Compared to the fourth quarter of 2021, NII similarly increased due to higher yields on assets, which was partially offset by higher deposit costs.

Net interest margin ("NIM") for the fourth quarter of 2022 was 2.79%, an increase of 20 basis points from 2.59% in the previous quarter and up 79 basis points from 2.00% in the fourth quarter of 2021. NIM in the fourth quarter of 2022 was higher than the prior quarter and fourth quarter of 2021 primarily due to increased market interest rates.

Non-interest income for the fourth quarter of 2022 of $54.9 million was $5.0 million higher than the $49.9 million earned in the previous quarter and $2.3 million higher than $52.7 million in the fourth quarter of 2021. Non-interest income during the fourth quarter of 2022 increased compared to the prior quarter due to increased banking fees driven by higher card services fees from seasonal credit and debit card transaction activity and higher trust income driven by both new business and higher activity-based fees. Non-interest income in the fourth quarter of 2022 was higher than the fourth quarter of 2021 due to higher banking and foreign exchange revenues, partially offset by lower asset management, trust and custody fees.

Non-interest expenses were $84.7 million in the fourth quarter of 2022, compared to $82.0 million in the previous quarter and $83.8 million in the fourth quarter of 2021. Core non-interest expenses<sup>1</sup> of $84.5 million in the fourth quarter of 2022 were higher than the $81.8 million incurred in the previous quarter and the $83.7 million incurred in the fourth quarter of 2021 primarily due to higher staff-related expenses from performance-based incentive accruals and non-recurring severance costs.

Deposit balances increased $0.5 billion compared to the prior quarter to $13.0 billion due to increased volumes and the impact of changes in foreign exchange rates. Period end deposit balances were lower compared to December 31, 2021 at $13.9 billion due to the anticipated normalization of pandemic-related elevated deposit levels, as well as the impact of foreign exchange translation of non-US dollar deposits following the strengthening of the US dollar. Customer withdrawals represent 57% of the decrease in deposits while the strengthening of US dollar's impact on non-US dollar balances represents 43% of the change year-over-year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

------

The Bank maintained its balanced capital return policy. The Board again declared a quarterly dividend of $0.44 per common share to be paid on March 14, 2023 to shareholders of record on February 27, 2023. The Board approved a new share repurchase program on February 13, 2023 to replace its expiring program authorizing the purchase of up to 3.0 million common shares through to February 29, 2024. The new share repurchase authorization will take effect on March 1, 2023.

The current total regulatory capital ratio as at December 31, 2022 was 24.1% as calculated under Basel III, compared to 21.2% as at December 31, 2021. Both of these ratios remain significantly above the minimum Basel III regulatory requirements applicable to the Bank.

**ANALYSIS AND DISCUSSION OF FOURTH QUARTER RESULTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three months ended (Unaudited)** | **Three months ended (Unaudited)** | **Three months ended (Unaudited)** | **Year ended** | **Year ended** |
| **Income statement**<br>**(in $ millions)** | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2022** | **December 31, 2021** |
| Non-interest income | 54.9 | 49.9 | 52.7 | 206.6 | 198.1 |
| Net interest income before provision for credit losses | 94.6 | 91.2 | 74.5 | 343.6 | 299.8 |
| **Total net revenue before provision for credit losses and other gains (losses)** | 149.5 | 141.1 | 127.2 | 550.2 | 497.9 |
| Provision for credit (losses) recoveries | (1.6) | (0.8) | 0.6 | (2.4) | 3.1 |
| Total other gains (losses) | 0.6 | 0.1 | (1.6) | 1.5 | (1.4) |
| **Total net revenue** | 148.5 | 140.4 | 126.2 | 549.3 | 499.7 |
| Non-interest expenses | (84.7) | (82.0) | (83.8) | (331.6) | (333.9) |
| **Total net income before taxes** | 63.8 | 58.4 | 42.4 | 217.7 | 165.8 |
| Income tax benefit (expense) | (0.7) | (0.9) | (0.8) | (3.7) | (3.1) |
| **Net income** | 63.1 | 57.4 | 41.7 | 214.0 | 162.7 |
| **Net earnings per share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic  | 1.27 | 1.16 | 0.84 | 4.32 | 3.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted  | 1.26 | 1.15 | 0.84 | 4.29 | 3.26 |
| Per diluted share impact of other non-core items <sup>1</sup>  | 0.01 | 0.01 |  | 0.04 | 0.02 |
| **Core earnings per share on a fully diluted basis** <sup>1</sup>  | **1.27** | **1.16** | **0.84** | **4.33** | **3.28** |
| Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares) | 49963 | 49847 | 49800 | 49860 | 49875 |
| **Key financial ratios** |  |  |  |  |  |
| Return on common equity | 31.6% | 28.5% | 17.1% | 25.7% | 16.8% |
| Core return on average tangible common equity <sup>1</sup> | 34.9% | 31.6% | 18.8% | 28.6% | 18.7% |
| Return on average assets | 1.8% | 1.6% | 1.1% | 1.5% | 1.1% |
| Net interest margin | 2.79% | 2.59% | 2.00% | 2.41% | 2.02% |
| Core efficiency ratio <sup>1</sup> | 55.6% | 57.0% | 64.7% | 58.9% | 65.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.

------

---

| | | |
|:---|:---|:---|
| | **As at** | **As at** |
| **Balance Sheet**<br>**(in $ millions)** | **December 31, 2022** | **December 31, 2021** |
| Cash and cash equivalents | 2101 | 2180 |
| Securities purchased under agreements to resell | 60 | 96 |
| Short-term investments | 884 | 1199 |
| Investments in securities | 5727 | 6237 |
| Loans, net of allowance for credit losses | 5096 | 5241 |
| Premises, equipment and computer software, net | 146 | 139 |
| Goodwill and intangibles, net | 74 | 86 |
| Accrued interest and other assets | 217 | 158 |
| **Total assets** | 14306 | 15335 |
| Total deposits | 12991 | 13870 |
| Accrued interest and other liabilities | 278 | 316 |
| Long-term debt | 172 | 172 |
| **Total liabilities** | 13441 | 14358 |
| Common shareholders' equity | 865 | 977 |
| **Total shareholders' equity** | 865 | 977 |
| **Total liabilities and shareholders' equity** | 14306 | 15335 |
| **Key Balance Sheet Ratios:** | **December 31, 2022** | **December 31, 2021** |
| Common equity tier 1 capital ratio<sup>1</sup>  | 20.3% | 17.6% |
| Tier 1 capital ratio<sup>1</sup> | 20.3% | 17.6% |
| Total capital ratio<sup>1</sup> | 24.1% | 21.2% |
| Leverage ratio<sup>1</sup> | 6.7% | 5.6% |
| Risk-Weighted Assets (in $ millions) | 4843 | 5101 |
| Risk-Weighted Assets / total assets | 33.9% | 33.3% |
| Tangible common equity ratio | 5.6% | 5.8% |
| Book value per common share (in $) | 17.42 | 19.83 |
| Tangible book value per share (in $) | 15.92 | 18.08 |
| Non-accrual loans/gross loans | 1.2% | 1.2% |
| Non-performing assets/total assets | 0.5% | 0.5% |
| Allowance for credit losses/total loans | 0.5% | 0.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>In accordance with regulatory capital guidance, the Bank has elected to make use of transitional arrangements which allow the deferral of the January 1, 2020 Current Expected Credit Loss ("CECL") impact of $7.8 million on its regulatory capital over a period of 5 years.

**QUARTER ENDED DECEMBER 31, 2022 COMPARED WITH THE QUARTER ENDED SEPTEMBER 30, 2022** 

**Net Income**

Net income for the quarter ended December 31, 2022 was $63.1 million, up $5.7 million from $57.4 million in the prior quarter.

The $5.7 million increase in net income in the quarter ended December 31, 2022 compared to the previous quarter was due principally to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $3.4 million increase in net interest income before provision for credit losses, driven by the continued impact of higher market interest rates across the yield curve, which was partially offset by higher deposit costs predominantly in the Channel Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $5.0 million increase in non-interest income due to higher banking fees driven by seasonally higher consumer spending supporting interchange revenue and higher trust income driven by both new business and higher activity-based fees; and partially offset by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $2.8 million increase in staff-related expenses primarily due to higher staff incentive accruals and non-recurring severance costs.

------

**Non-Core Items**<sup>1</sup>

Non-core items resulted in expenses, net of gains, of $0.1 million in the fourth quarter of 2022. Non-core items for the quarter mainly relate to the costs associated with the settlement of a non-US corporate income tax inquiry in connection with the commercial affairs of a legacy custody client.

Management does not believe that comparative period expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business.

**YEAR ENDED DECEMBER 31, 2022 COMPARED WITH THE YEAR ENDED DECEMBER 31, 2021** 

**Net Income**

Net Income for the year ended December 31, 2022 was $214.0 million, up $51.4 million from $162.7 million in the prior year.

The $51.4 million increase in net income in the year ended December 31, 2022 was due principally to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $43.8 million increase in net interest income before provision for credit losses, driven by the impact of higher market interest rates across the yield curve, which was partially offset by higher deposit costs, predominantly in the Channel Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $8.5 million increase in non-interest income due to volume-driven increases in both banking and foreign exchange revenue coupled with higher facility non-utilization fees and a number of one-off corporate loan restructuring fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $7.1 million decrease in technology and communications costs due to the depreciation charges on the existing core banking system in the prior year continuing to outpace costs associated with the new technology projects; partially offset by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $5.5 million increase in the provision for credit losses driven by the extension of a large, long-term government facility in the Cayman Islands as well as decreasing macroeconomic forecasts impacting future expected credit loss estimates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $4.9 million increase in staff-related costs due to higher staff incentive accruals, costs associated with the departure of a senior executive that was recorded as a non-core item, other non-recurring severance costs and market salary adjustments.

**Non-Core Items**<sup>1</sup> Non-core items resulted in expenses, net of gains, of $1.7 million in the year ended December 31, 2022 compared to expenses, net of gains, of $0.9 million in the prior year. Non-core items for the year included costs associated with the departure of a senior executive, residual professional fees incurred in relation to the resolved US Department of Justice inquiry, and costs associated with the settlement of a non-US corporate income tax inquiry in connection with the commercial affairs of a legacy custody client.

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.

**BALANCE SHEET COMMENTARY AT DECEMBER 31, 2022 COMPARED WITH DECEMBER 31, 2021** 

**Total Assets**

Total assets of the Bank were $14.3 billion at December 31, 2022, a decrease of $1.0 billion from December 31, 2021. The Bank maintained a highly liquid position at December 31, 2022, with its $8.8 billion of cash and demand deposits with banks, reverse repurchase agreements and liquid investments representing 61.3% of total assets, compared with 63.3% at December 31, 2021.

**Loans Receivable**

The loan portfolio totaled $5.1 billion at December 31, 2022, which was $0.1 billion lower than December 31, 2021 balances. The decrease was driven by the impact of the strengthening of the US dollar on GBP denominated balances, the early repayment of a number of commercial facilities, and partially offset by the extension of a government facility in the Cayman Islands.

------

The allowance for credit losses at December 31, 2022 totaled $25.0 million, a decrease of $3.1 million from $28.1 million at December 31, 2021. The movement was driven by a decrease in provisioned non-accrual loans, net paydowns and foreign exchange movements in the portfolio. This was partially offset by weaker forward-looking economic forecasts and the extension of a large, long-term government facility in the Cayman Islands.

The loan portfolio represented 35.6% of total assets at December 31, 2022 (December 31, 2021: 34.2%), while loans as a percentage of total deposits was 39.2% at December 31, 2022 (December 31, 2021: 37.8%). The increase in both ratios was attributable principally to a decrease in deposit balances at December 31, 2022 driven by the expected withdrawal of some pandemic-related deposits as well as the impact of the strengthening US dollar on non-US dollar denominated balances.

As of December 31, 2022, the Bank had gross non-accrual loans of $63.1 million, representing 1.2% of total gross loans, an increase of $2.0 million from $61.0 million, or 1.2% of total loans, at December 31, 2021. The increase in non-accrual loans was driven by a few well-secured residential mortgages in the Channel Islands and UK segment moving into non-accrual and partially offset by a number of Bermuda residential mortgages improving to current status.

Other real estate owned ("OREO") increased by $0.1 million from December 31, 2021 to $0.8 million due to the foreclosure of three loans in the Bermuda and Channel Islands and UK segments and which was partially offset by the sale of three properties in the Bermuda and Channel Islands and UK segments.

**Investment in Securities**

The investment portfolio was $5.7 billion at December 31, 2022, down $0.5 billion from $6.2 billion at December 31, 2021. The movement was driven by the increase in total net unrealized losses on the available-for-sale portfolio that is carried at fair value and the reinvestment of paydowns into cash and cash equivalents in 2022.

The investment portfolio is made up of high quality assets with 100% invested in A-or-better-rated securities. The investment book yield increased to 2.03% during the quarter ended December 31, 2022 from 1.94% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio increased to $220.2 million, compared with total net unrealized losses of $21.8 million at December 31, 2021, as a result of rising long-term US dollar interest rates. No credit losses have been noted as at December 31, 2022.

**Deposits** 

Average deposits were $12.5 billion for the quarter ended December 31, 2022, a decrease of $0.5 billion compared to the previous quarter, while period end balances as at December 31, 2022 were $13.0 billion, a decrease of $0.9 billion compared to December 31, 2021.

------

**Average Balance Sheet**<sup>2</sup>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended | For the three months ended |
| | December 31, 2022 | December 31, 2022 | December 31, 2022 | September 30, 2022 | September 30, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| (in $ millions) | Average<br>balance <br>($) | Interest<br>($) | Average<br>rate <br>(%) | Average<br>balance <br>($) | Interest<br>($) | Average<br>rate <br>(%) | Average<br>balance <br>($) | Interest<br>($) | Average<br>rate <br>(%) |
| **Assets** |  |  |  |  |  |  |  |  |  |
| Cash and cash equivalents and short-term investments | 2538.4 | 18.0 | 2.81 | 2818.4 | 10.0 | 1.40 | 3316.3 | 0.3 | 0.03 |
| Investment in securities | 5854.9 | 30.0 | 2.03 | 6007.3 | 29.4 | 1.94 | 6266.1 | 26.1 | 1.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale | *2074.5* | *8.9* | *1.71* | *2140.1* | *8.5* | *1.58* | *3499.6* | *12.2* | *1.38* |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity | *3780.3* | *21.1* | *2.21* | *3867.3* | *20.9* | *2.14* | *2766.5* | *13.9* | *1.99* |
| Loans | 5039.8 | 73.5 | 5.79 | 5123.1 | 65.3 | 5.05 | 5185.4 | 54.6 | 4.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | *1477.2* | *22.4* | *6.00* | *1523.3* | *20.8* | *5.41* | *1520.9* | *16.8* | *4.39* |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer | *3562.6* | *51.2* | *5.70* | *3599.8* | *44.5* | *4.90* | *3664.5* | *37.8* | *4.09* |
| **Interest earning assets** | **13433.0** | **121.5** | **3.59** | **13948.9** | **104.6** | **2.98** | **14767.7** | **81.0** | **2.17** |
| Other assets | 385.7 |  |  | 369.1 |  |  | 359.4 |  |  |
| **Total assets** | **13818.7** |  |  | **14317.9** |  |  | **15127.2** |  |  |
| **Liabilities** |  |  |  |  |  |  |  |  |  |
| Deposits | 9476.3 | (24.5) | (1.02) | 9939.5 | (11.1) | (0.44) | 10718.3 | (4.0) | (0.15) |
| Securities sold under agreement to repurchase | 2.2 |  | (3.92) |  |  |  |  |  |  |
| Long-term debt | 172.2 | (2.4) | (5.53) | 172.1 | (2.4) | (5.53) | 171.8 | (2.4) | (5.54) |
| **Interest bearing liabilities** | **9650.7** | **(26.9)** | **(1.10)** | **10111.7** | **(13.5)** | **(0.53)** | **10890.1** | **(6.4)** | **(0.23)** |
| Non-interest bearing current accounts | 3039.0 |  |  | 3074.6 |  |  | 2928.2 |  |  |
| Other liabilities | 254.2 |  |  | 256.2 |  |  | 277.5 |  |  |
| **Total liabilities** | **12943.9** |  |  | **13442.4** |  |  | **14095.9** |  |  |
| Shareholders' equity | 874.8 |  |  | 875.5 |  |  | 1031.3 |  |  |
| **Total liabilities and shareholders' equity** | **13818.7** |  |  | **14317.9** |  |  | **15127.2** |  |  |
| Non-interest bearing funds net of <br> non-interest earning assets <br> (free balance) | 3782.3 |  |  | 3837.2 |  |  | 3877.6 |  |  |
| **Net interest margin** |  | **94.6** | **2.79** |  | **91.2** | **2.59** |  | **74.5** | **2.00** |

---

<sup>(2)</sup> Averages are based upon a daily averages for the periods indicated.

**Assets Under Administration and Assets Under Management** 

Total assets under administration for the trust and custody businesses were $106.2 billion and $32.2 billion, respectively, at December 31, 2022, while assets under management were $5.0 billion at December 31, 2022. This compares with $106.4 billion, $36.8 billion and $5.5 billion, respectively, at December 31, 2021.

------

**Reconciliation of US GAAP Results to Core Earnings**

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.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Three months ended** | **Year ended** | **Year ended** |
| **Core Earnings**<br>**(in $ millions except per share amounts)** | **December 31, 2022** | **September 30, 2022** | **December 31, 2021** | **December 31, 2022** | **December 31, 2021** |
| **Net income** | 63.1 | 57.4 | 41.7 | 214.0 | 162.7 |
| **Non-core items** |  |  |  |  |  |
| *Non-core (gains) losses* |  |  |  |  |  |
| Gain on disposal of Visa Inc. Class B shares |  |  |  |  | (0.9) |
| Total non-core (gains) losses |  |  |  |  | (0.9) |
| *Non-core expenses* |  |  |  |  |  |
| Early retirement program, voluntary separation, redundancies and other non-core compensation costs |  |  |  | 1.0 | 1.5 |
| Tax compliance review costs | 0.1 | 0.2 | 0.1 | 0.4 | 0.2 |
| Settlement of client related tax inquiry |  |  |  | 0.2 | 0.1 |
| Total non-core expenses | 0.1 | 0.2 | 0.1 | 1.7 | 1.8 |
| **Total non-core items** | **0.1** | **0.2** | **0.1** | **1.7** | **0.9** |
| **Core net income** | **63.2** | **57.6** | **41.7** | **215.7** | **163.6** |
| Average common equity | 791.2 | 799.0 | 965.2 | 833.2 | 965.7 |
| Less: average goodwill and intangible assets | (73.4) | (75.1) | (86.6) | (78.5) | (90.0) |
| Average tangible common equity | 717.8 | 723.9 | 878.5 | 754.7 | 875.8 |
| **Core earnings per share fully diluted** | **1.27** | **1.16** | **0.84** | **4.33** | **3.28** |
| **Return on common equity** | **31.6%** | **28.5%** | **17.1%** | **25.7%** | **16.8%** |
| **Core return on average tangible common equity** | **34.9%** | **31.6%** | **18.8%** | **28.6%** | **18.7%** |
| Shareholders' equity | 864.8 | 754.9 | 977.5 | 864.8 | 977.5 |
| Less: goodwill and intangible assets | (74.4) | (71.9) | (86.1) | (74.4) | (86.1) |
| Tangible common equity | 790.4 | 683.0 | 891.4 | 790.4 | 891.4 |
| Basic participating shares outstanding (in millions) | 49.7 | 49.6 | 49.3 | 49.7 | 49.3 |
| **Tangible book value per common share** | **15.92** | **13.76** | **18.08** | **15.92** | **18.08** |
| Non-interest expenses | 84.7 | 82.0 | 83.8 | 331.6 | 333.9 |
| &nbsp;&nbsp;&nbsp;Less: non-core expenses | (0.1) | (0.2) | (0.1) | (1.7) | (1.8) |
| &nbsp;&nbsp;&nbsp;Less: amortization of intangibles | (1.4) | (1.4) | (1.5) | (5.7) | (6.0) |
| Core non-interest expenses before amortization of intangibles | 83.1 | 80.4 | 82.2 | 324.2 | 326.1 |
| Core revenue before other gains and losses and provision for credit losses | 149.5 | 141.1 | 127.2 | 550.2 | 497.9 |
| **Core efficiency ratio** | **55.6%** | **57.0%** | **64.7%** | **58.9%** | **65.5%** |

---

------

**Conference Call Information:**

Butterfield will host a conference call to discuss the Bank's results on Tuesday, February 14, 2023 at 10:00 a.m. Eastern Time. Callers may access the conference call by dialing +1 (844) 855 9501 (toll-free) or +1 (412) 858 4603 (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 <u>www.butterfieldgroup.com</u>. A replay of the call will be archived on the Butterfield website thereafter.

**About Non-GAAP Financial Measures:**

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 US 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 US GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See "Reconciliation of US GAAP Results to Core Earnings" for additional information.

**Forward-Looking Statements:**

Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions estimates, intentions, and future performance, including, without limitation, our intention to make share repurchases and our dividend payout target, 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 Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including worldwide economic conditions and fluctuations of interest rates, inflation, a decline in Bermuda's sovereign credit rating, 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, the impact of the COVID-19 pandemic, actions taken by governmental authorities in response to the pandemic, the eventual timing and duration of economic stabilization and recovery from the pandemic and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements.

All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC's website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as 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 in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. BF-ALL

**About Butterfield:**

Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. 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: <u>www.butterfieldgroup.com</u>.

**Investor Relations Contact:**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Media Relations Contact:**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Noah Fields&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nicky Stevens

Investor Relations &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Strategic Marketing & Communications

The Bank of N.T. Butterfield & Son Limited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bank of N.T. Butterfield & Son Limited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Phone: (441) 299 3816&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phone: (441) 299 1624&nbsp;&nbsp;&nbsp;&nbsp;

E-mail: <u>noah.fields@butterfieldgroup.com</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cellular: (441) 524 4106

E-mail: <u>nicky.stevens@butterfieldgroup.com</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 99.2

![](currentearningsdeck001.jpg)

Fourth Quarter and Year-End 2022 Earnings Presentation The Bank of N.T. Butterfield & Son Limited February 14, 2023

------

![](currentearningsdeck002.jpg)

2 Forward-Looking Statements Forward-Looking Statements: Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions estimates, intentions, and future performance, including, without limitation, our intention to make share repurchases and our dividend payout target, 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 Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including worldwide economic conditions and fluctuations of interest rates, inflation, a decline in Bermuda's sovereign credit rating, 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, the impact of the COVID-19 pandemic, actions taken by governmental authorities in response to the pandemic, the eventual timing and duration of economic stabilization and recovery from the pandemic and other factors. Forward- looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements. All forward-looking statements in this disclosure 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, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the SEC, including through the SEC's website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as 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 in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. 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.

------

![](currentearningsdeck003.jpg)

3 Agenda and Overview Ten International Locations Butterfield Overview Michael Collins Chairman and Chief Executive Officer Craig Bridgewater Group Chief Financial Officer Michael Schrum President and Group Chief Risk Officer • Leading Bank in Attractive Markets • Strong Capital Generation and Return • Resilient, Capital Efficient, Diversified Fee Revenue Model • Efficient, Conservative Balance Sheet • Experienced Leadership Team • Overview • Full Year 2022 Highlights • Fourth Quarter 2022 Financials • Q&A Awards Presenters Agenda • Leading market positions in Bermuda & Cayman • Expanding loan and mortgage offerings in The Channel Islands • Well-secured lending in all markets, including Central London, UK • Award winning wealth management offerings ESG Membership

------

![](currentearningsdeck004.jpg)

4 Full Year 2022 Highlights Net Income (In US$ millions) Return on Equity (In US$ millions) vs. 2021 2022 $% Net Interest Income $343.6 $43.8 Non-Interest Income 206.6 8.5 Provision for Credit Losses (2.4) (5.5) Non-Interest Expenses\* (335.3) 1.7 Other Gains (Losses) 1.5 2.9 Net Income $214.0 $51.4 31.6 % Non-Core Items\*\* 1.7 0.8 Core Net Income\*\* $215.7 $52.1 31.9 % • Net income of $214.0 million, or $4.29 per share • Core Net Income\*\* of $215.7 million, or $4.33 per share • Return on average common equity of 25.7%; core return on average tangible common equity\*\* of 28.6% • Net Interest Margin of 2.41%, cost of deposits of 0.34% • Active capital management with aggregate quarterly dividends of $1.76 per common share • New 2023 share repurchase authorization for up to 3.0 million common shares • Signed agreement with Credit Suisse to acquire their global trust business in Singapore, Guernsey and The Bahamas \* Includes income taxes \*\* See the Appendix for a reconciliation of the non-GAAP measure $195.2 $177.1 $147.2 $162.7 $214.0 $197.0 $197.9 $154.5 $163.6 $215.7 Net Income Core Net Income\*\* 2018 2019 2020 2021 2022 23.1% 19.1% 15.0% 16.8% 25.7%25.6% 23.4% 17.3% 18.7% 28.6% Return on Equity Core Return on Average Tangible Common Equity\*\* 2018 2019 2020 2021 2022

------

![](currentearningsdeck005.jpg)

Financials

------

![](currentearningsdeck006.jpg)

6 Fourth Quarter 2022 Highlights Net Income (In US$ millions) Return on Equity (In US$ millions) vs. Q3 2022 vs. Q4 2021 Q4 2022 $% $% Net Interest Income $94.6 $3.4 $20.1 Non-Interest Income 54.9 5.0 2.3 Provision for Credit Losses (1.6) (0.8) (2.2) Non-Interest Expenses\* (85.4) (2.5) (0.8) Other Gains (Losses) 0.6 0.5 2.1 Net Income $63.1 $5.7 9.9 % $21.5 51.5 % Non-Core Items\*\* 0.1 — — Core Net Income\*\* $63.2 $5.6 9.8 % $21.5 51.5 % • Net income of $63.1 million, or $1.26 per share • Core net income\*\* of $63.2 million or $1.27 per share • Return on average common equity of 31.6%; core return on average tangible common equity\*\* of 34.9% • Net Interest Margin of 2.79%, cost of deposits of 0.78% • Cash dividend rate of $0.44 per common share during the quarter • Appointment of Ingrid Pierce as new Independent Director \* Includes income taxes \*\* See the Appendix for a reconciliation of the non-GAAP measure $41.7 $44.4 $49.1 $57.4 $63.1 $41.7 $44.7 $50.2 $57.6 $63.2 Net income Core Net Income\*\* Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 17.1% 19.7% 24.5% 28.5% 31.6% 18.8% 21.9% 27.8% 31.6% 34.9% Return on Equity Core Return on Average Tangible Common Equity\*\* Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022

------

![](currentearningsdeck007.jpg)

7 Net Interest Income before Provision for Credit Losses - Trend (In US$ millions) $74.5 $91.2 $94.6 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Net Interest Margin & Yields Income Statement Net Interest Income • Net interest income ("NII") increased by $3.4 million versus the prior quarter primarily due to higher margins on loans and treasury assets, which were partially offset by higher deposit costs, particularly in the more competitive Channel Islands markets • Net interest margin ("NIM") improved as a result of balancing asset repricing with cost of deposits • The value of average investment balances decreased due to scheduled maturities in the MBS portfolio, offset by a decrease in net unrealized losses • Average loan balances decreased in the fourth quarter compared to the prior quarter due to net paydowns in Bermuda and Cayman (In US$ millions) Q4 2022 vs. Q3 2022 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $2,538.4 2.81 % $(280.1) 1.41 % Investments 5,854.9 2.03 % (152.5) 0.09 % Loans (net) 5,039.8 5.79 % (83.3) 0.74 % Interest Earning Assets 13,433.0 3.59 % (515.8) 0.61 % Interest Bearing Liabilities 9,650.7 (1.10) % (460.9) (0.57) % Net Interest Margin 2.79 % 0.20 %

------

![](currentearningsdeck008.jpg)

8 Non-Interest Income Trend (In US$ millions)(In US$ millions) Q4 2022 vs. Q3 2022 Asset management $7.4 $— Banking 17.5 3.4 Foreign exchange revenue 11.5 (0.3) Trust 13.7 1.2 Custody and other 3.4 — Other 1.4 0.7 Total Non-Interest Income $54.9 $5.0 $52.7 $49.9 $54.9 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 • Non-interest income increased in the quarter due to higher banking fees driven by higher card services fees from seasonal credit and debit card transaction activity and higher trust income driven by both new business and higher activity-based fees • The fee income ratio was 37.1% in the fourth quarter of 2022 which compares favorably to the peer average\* and the 35.6% in the prior quarter Income Statement Non-Interest Income \* Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q3 2022 comparative data is used as Q4 2022 peer information was not widely available at time of publication.

------

![](currentearningsdeck009.jpg)

9 Core Non-Interest Expense\* Trend (In US$ millions)Core Non-Interest Expenses\* vs. Q3 2022 (In US$ millions) Q4 2022 $% Salaries & Benefits\*\* $44.7 $2.8 6.6 % Technology & Comm. 14.3 — 0.2 % Professional & O/S Services 4.2 (0.5) (9.7) % Property 8.0 0.1 1.3 % Indirect Taxes 5.4 0.2 3.7 % Marketing 1.8 0.4 24.3 % Intangible Amortization 1.4 — (0.6) % Other 4.7 (0.3) (5.6) % Total Core Non-Interest Expenses\* $84.5 $2.7 3.3 % Non-Core Expenses\* 0.1 — (24.8) % Non-Interest Expenses $84.7 $2.7 3.3 % $83.7 $81.8 $84.5 64.7% 57.0% 55.6% Core Efficiency Ratio\* Core Non-Interest Expenses\* Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 • Core non-interest expenses\* were higher than the prior quarter, primarily as a result of an increase in staff-related expenses due to higher performance-based incentive accruals and non-recurring severance costs • Core efficiency ratio\* of 55.6% continued to improve as the rate of increase in revenues, primarily as a result of rising market interest rates, exceeded the marginal change in non-interest expenses. Butterfield continues to target a through- cycle core efficiency ratio of 60% \* See the Appendix for a reconciliation of the non-GAAP measure \*\* Includes Non-Service Employee Benefits Expense Income Statement Non-Interest Expenses

------

![](currentearningsdeck010.jpg)

10 Capital Requirements and Dividend Return Leverage Capital • Regulatory capital levels remain conservatively above requirements • Quarterly dividend rate continues at $0.44 per common share • TCE/TA ratio of 5.6% has increased compared to 5.0% last quarter, due to a decrease in the accumulated other comprehensive loss in the "available for sale" investment portfolio due to lower US market interest rates quarter over quarter. This was partially offset by higher deposit levels • TCE/TA ex-cash and ex-OCI are 6.5% and 8.2%, respectively Regulatory Capital (Basel III) - Total Capital Ratio\* 24.1% 13.5% 13.8% Butterfield Current BMA Minimum US Peer Median\*\*\* \*\* Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q3 2022 comparative data is used as Q4 2022 peer information was not widely available at time of publication. 6.5% 6.5% 5.6% 6.2% 0.9% 0.3% TCE/TA TCE/TA Ex Cash Butterfield - Current US Peer Median\*\*\* 52.9% 60.5% 53.7% 40.7% 2019 2020 2021 2022 Dividend Payout Ratio \* In accordance with regulatory capital guidance, the Bank has elected to make use of transitional arrangements which allow the deferral of the January 1, 2020 CECL impact of $7.8 million on its regulatory capital over a period of 5 years.

------

![](currentearningsdeck011.jpg)

11 Balance Sheet Total Assets (In US$ billions) • Period end deposit balances decreased by $0.9 billion to $13.0 billion compared to the prior year-end due to client deposit activation and a strengthened US dollar • Butterfield's balance sheet remains low in risk density (risk weighted assets/total assets) at 33.9% vs Q4 2021 (In US$ millions) Q4 2022 Q4 2021 % Cash and cash equivalents $2,101 $2,180 (4) % Reverse Repos & S/T Investments 944 1,295 (27) % Investments 5,727 6,237 (8) % Loans (net) 5,096 5,241 (3) % Other Assets 437 382 14 % Total Assets $14,306 $15,335 (7) % Int. Bearing Deposits $9,951 $11,050 (10) % Non-Int. Bearing Deposits 3,040 2,821 8 % Other Liabilities 450 487 (8) % Shareholders' Equity 865 977 (12) % Total Liab. & Equity $14,306 $15,335 (7) % $15.3 $13.7 $14.3 $6.2 $5.8 $5.7 $5.2 $5.0 $5.1 Total assets Investments Loans Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 $13.9 $12.5 $13.0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Total Deposits (In US$ billions)

------

![](currentearningsdeck012.jpg)

12 Balance Sheet Movements Deposit Currency by Segment (in US$ billions) Deposit Movements (in US$ millions) $530 $(870) Change vs Q3 2022 Change vs Q4 2021 Loan Movements (in US$ millions) Loan Currency by Segment (in US$ billions) +290 +240 (500) (370) $105 $(145) Change vs Q3 2022 Change vs Q4 2021 (40) +145 +95 (240) Volume FX Translation $0.7 $0.7 $0.1 $1.1 $0.5 $— $1.9 $1.9 $1.2 $2.0 USD USD Pegged GBP Bermuda Cayman UK and Channel Islands $4.5 $4.3 $4.2 $2.5 $3.1 $1.6 $1.5 $1.0 $0.2 $0.2 $2.2 $0.3 $0.1 $0.4 USD USD Pegged GBP Other Bermuda Cayman UK and Channel Islands

------

![](currentearningsdeck013.jpg)

13 Asset Quality Non-Accrual Loans (In US$ millions) $61.0 $60.9 $63.1 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Res Mtg 69.7% Consumer 3.9% Comm'l R/E 12.2% Other Comm'l 8.6% Government 5.5% Loan Distribution 0.05% 0.08% 0.11% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 0.00% 0.05% 0.10% 0.15% 0.20% Net Charge-Off Ratio AAA 95.5% AA 4.1% A 0.4% $5.1 billion $5.7 billion Investment Portfolio Rating Distribution • Investment portfolio continues to be of very high credit quality with 96% comprised of AAA rated securities, primarily US Government guaranteed mortgage backed securities • Non-accrual loans remained at 1.2% of gross loans, consistent with the prior quarter • Allowance for credit losses at $25.0 million representing an ACL/Total loans of 0.5% • The net charge off ratio continues to be low at 0.11%

------

![](currentearningsdeck014.jpg)

14 Interest Rate Sensitivity Interest Rate SensitivityAverage Balance - Balance Sheet Average Balances (US$Mil) Weighted Average LifeQ4 2022 vs. Q3 2022 Duration vs. Q3 2022 Cash & Reverse Repos & S/T Invest. $2,538.4 $(280.1) 0.3 0.1 N/A AFS 2,074.5 (65.5) 3.6 (0.1) 4.7 HTM\*\* 3,780.3 (86.9) 6.5 0.1 9.4 Total $8,393.2 $(432.5) (5.6)% 1.6% 3.3% (2.9)% 2.9% 5.4% NTB US Peer Median \* -100bps +100bps +200bps • Total investment portfolio duration was unchanged compared to the third quarter of 2022 at 5.4 years • NII models showed a continued reduction in interest rate sensitivity due to an increased volume of fixed rate loans and continued high sensitivity of deposit costs in the Channel Islands • As of December 31, 2022, the Bank had $220.2 million in net unrealized losses in the AFS portfolio, compared with net unrealized losses of $240.1 million as at the end of the third quarter of 2022. This reflects higher fair value due to changes in long-term US dollar market interest rates compared to the prior quarter \* Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q3 2022 comparative data is used as Q4 2022 peer information was not widely available at time of publication. \*\* The HTM portfolio is comprised of securities with negative convexity which typically exhibit lower prepayment speeds when assuming higher future rates.

------

![](currentearningsdeck015.jpg)

Appendix

------

![](currentearningsdeck016.jpg)

16 Average Deposit Volume and Cost of Deposits (In US$ millions) 72.6% 75.5% 74.3% 21.5% 19.1% 20.0% 5.8% 5.4% 5.7% USD / USD Pegged GBP Other Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 De po sit s 0.64% 1.17% 2.54% 0.12% 0.34% 0.78% Bermuda Demand Deposits Bermuda Term Deposits Cayman Demand Deposits Cayman Term Deposits Channel Islands Demand Deposits Channel Islands Term Deposits Term deposit cost Overall cost of deposits Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 20.3% 23.8% 23.4% 58.5% 54.8% 52.7% 21.2% 21.4% 23.9% Non-interest bearing demand deposits Interest bearing demand deposits Term deposits Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Deposit Composition By Currency By Type Appendix Deposits

------

![](currentearningsdeck017.jpg)

17 42% 34% 32% 29% 29% 21% 18% 18% 21% 23% 37% 48% 49% 50% 49% $2.7 $3.2 $3.4 $3.6 $3.6 Bermuda Cayman UK and Channel Islands 2018 2019 2020 2021 2022 42% 32% 29% 26% 24% 3% 2% 5% 7% 9% 9% 22% 18% 18% 21% 47% 45% 49% 48% 46% $1.2 $1.7 $1.6 $1.4 $1.4 Commercial and Industrial Commercial Overdrafts Government Commercial Real Estate 2018 2019 2020 2021 2022 • Stable loan book composed of well-seasoned residential mortgage books with 70% of mortgages at 70% or below loan-to-value • Loans are individually underwritten in all markets • Minimal wholesale or cross-border lending outside of current jurisdictions Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billion) Appendix 56% 44% 44% 39% 37% 19% 18% 18% 20% 24% 25% 38% 38% 41% 39% $4.0 $5.1 $5.2 $5.2 $5.1 Bermuda Cayman UK and Channel Islands 2018 2019 2020 2021 2022 Loan Portfolio Composition by Originating Segment (US$ Billions)

------

![](currentearningsdeck018.jpg)

18 (in millions of US Dollars, unless otherwise indicated) 2022 2021 2020 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Assets Cash and cash equivalents $2,101 $1,485 $1,340 $2,103 $2,180 $2,310 $2,766 $2,582 $3,290 Reverse Repos & S/T Investments 944 995 1,516 1,601 1,295 1,446 1,651 1,236 1,020 Investments 5,727 5,805 5,970 6,111 6,237 5,984 5,605 5,426 4,863 Loans, Net 5,096 4,992 5,139 5,068 5,241 5,204 5,221 5,149 5,161 Other Assets 437 422 386 383 382 389 421 412 405 Total Assets $14,306 $13,699 $14,350 $15,266 $15,335 $15,332 $15,665 $14,805 $14,739 Liabilities and Equity Total Deposits $12,991 $12,461 $13,075 $13,933 $13,870 $13,861 $14,193 $13,361 $13,250 Long-Term Debt 172 172 172 172 172 172 172 172 171 Other Liabilities 278 311 300 319 316 325 334 335 335 Total Liabilities $13,441 $12,944 $13,547 $14,424 $14,358 $14,358 $14,698 $13,868 $13,757 Common Equity $865 $755 $802 $842 $977 $974 $967 $936 $982 Total Equity $865 $755 $802 $842 $977 $974 $967 $936 $982 Total Liabilities and Equity $14,306 $13,699 $14,350 $15,266 $15,335 $15,332 $15,665 $14,805 $14,739 Key Metrics CET 1 Ratio 20.3 % 18.9 % 17.7 % 17.3 % 17.6 % 16.9 % 16.1 % 16.4 % 16.1 % Total Tier 1 Capital Ratio 20.3 % 18.9 % 17.7 % 17.3 % 17.6 % 16.9 % 16.1 % 16.4 % 16.1 % Total Capital Ratio 24.1 % 22.7 % 21.4 % 20.9 % 21.2 % 20.4 % 19.5 % 20.0 % 19.8 % Leverage ratio 6.7 % 6.4 % 5.8 % 5.5 % 5.6 % 5.5 % 5.2 % 5.4 % 5.3 % Risk-Weighted Assets (in $ millions) 4,843 4,780 4,854 5,043 5,101 5,185 5,321 5,105 5,069 Risk-Weighted Assets / total assets 33.9 % 34.9 % 33.8 % 33.0 % 33.3 % 33.8 % 34.0 % 34.5 % 34.4 % Tangible common equity ratio 5.6 % 5.0 % 5.1 % 5.0 % 5.8 % 5.8 % 5.6 % 5.7 % 6.1 % Book value per common share (in $) 17.42 15.21 16.17 16.97 19.83 19.68 19.49 18.84 19.88 Tangible book value per share (in $) 15.92 13.76 14.61 15.30 18.08 17.92 17.67 17.00 18.00 Non-accrual loans/gross loans 1.2 % 1.2 % 1.2 % 1.2 % 1.2 % 1.2 % 1.3 % 1.4 % 1.4 % Non-performing assets/total assets 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.6 % 0.7 % 0.6 % Allowance for credit losses/total loans 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.6 % 0.6 % 0.7 % Appendix Balance Sheet Trends

------

![](currentearningsdeck019.jpg)

19 (in millions of US Dollars, unless otherwise indicated) Q4 2022 Q3 2022 Q4 2021 Assets Average balance ($) Interest ($) Average rate (%) Average balance ($) Interest ($) Average rate (%) Average balance ($) Interest ($) Average rate (%) Cash and cash equivalents, reverse repurchase agreements and short-term investments $2,538.4 $18.0 2.81 % $2,818.4 $10.0 1.40 % $3,316.3 $0.3 0.03 % Investment in securities 5,854.9 30.0 2.03 % 6,007.3 29.4 1.94 % 6,266.1 26.1 1.65 % AFS 2,074.5 8.9 1.71 % 2,140.1 8.5 1.58 % 3,499.6 12.2 1.38 % HTM 3,780.3 21.1 2.21 % 3,867.3 20.9 2.14 % 2,766.5 13.9 1.99 % Loans 5,039.8 73.5 5.79 % 5,123.1 65.3 5.05 % 5,185.4 54.6 4.18 % Commercial 1,477.2 22.4 6.00 % 1,523.3 20.8 5.41 % 1,520.9 16.8 4.39 % Consumer 3,562.6 51.2 5.70 % 3,599.8 44.5 4.90 % 3,664.5 37.8 4.09 % Total interest earning assets 13,433.0 121.5 3.59 % 13,948.9 104.6 2.98 % 14,767.7 81.0 2.17 % Other assets 385.7 369.1 359.4 Total assets $13,818.7 $14,317.9 $15,127.2 Liabilities Interest bearing deposits $9,476.3 $(24.5) (1.02) % $9,939.5 $(11.1) (0.44) % $10,718.3 $(4.0) (0.15) % Long-term debt 172.2 (2.4) (5.53) % 172.1 (2.4) (5.53) % 171.8 (2.4) (5.54) % Interest bearing liabilities 9,650.7 (26.9) (1.10) % 10,111.7 (13.5) (0.53) % 10,890.1 (6.4) (0.23) % Non-interest bearing customer deposits 3,039.0 3,074.6 2,928.2 Other liabilities 254.2 256.2 277.5 Total liabilities $12,943.9 $13,442.4 $14,095.9 Shareholders' equity 874.8 875.5 1,031.3 Total liabilities and shareholders' equity $13,818.7 $14,317.9 $15,127.2 Non-interest bearing funds net of non-interest earning assets (free balance) $3,782.3 $3,837.2 $3,877.6 Net interest margin $94.6 2.79 % $91.2 2.59 % $74.5 2.00 % Appendix Average Balance Sheet Trends

------

![](currentearningsdeck020.jpg)

20 (in millions of US Dollars, unless otherwise indicated) 2022 2021 2020 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Net Interest Income $94.6 $91.2 $82.0 $75.9 $74.5 $75.7 $74.7 $74.9 $75.6 Non-Interest Income 54.9 49.9 51.8 49.9 52.7 49.0 48.8 47.6 47.8 Prov. for Credit Recovery (Losses) (1.6) (0.8) (0.7) 0.7 0.6 — 1.0 1.5 2.4 Non-Interest Expenses\* 85.4 82.9 84.0 82.9 84.6 85.2 85.6 81.7 83.3 Other Gains (Losses) 0.6 0.1 0.1 0.8 (1.6) 0.3 0.7 (0.8) (0.4) Net Income $63.1 $57.4 $49.1 $44.4 $41.7 $39.8 $39.6 $41.6 $42.1 Non-Core Items\*\* $0.1 $0.2 $1.1 $0.3 $0.1 $0.2 $0.5 $— $0.8 Core Net Income\*\* $63.2 $57.6 $50.2 $44.7 $41.7 $40.0 $40.1 $41.6 $42.9 Key Metrics Loan Yield 5.79 % 5.05 % 4.48 % 4.26 % 4.18 % 4.22 % 4.28 % 4.37 % 4.42 % Securities Yield 2.03 1.94 1.89 1.79 1.65 1.77 1.82 1.95 2.11 Cost of Deposits 0.78 0.34 0.16 0.12 0.12 0.11 0.10 0.12 0.12 Net Interest Margin 2.79 2.59 2.26 2.03 2.00 1.97 2.01 2.09 2.25 Core Efficiency Ratio\*\* 55.6 57.0 60.2 63.7 64.7 66.3 66.3 64.8 65.6 Core ROATCE\*\* 34.9 31.6 27.8 21.9 18.8 17.9 18.7 19.3 19.0 Fee Income Ratio 37.1 35.6 38.9 39.5 41.2 39.3 39.2 38.4 38.0 Fully Diluted Share Count (in millions of common shares) 50.0 49.8 49.8 49.8 49.8 49.9 49.9 49.9 49.8 \* Includes income taxes \*\* See the reconciliation of non-GAAP measures on pages 23-24 Appendix Income Statement Trends

------

![](currentearningsdeck021.jpg)

21 (in millions of US Dollars, unless otherwise indicated) 2022 2021 2020 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Non-Interest Income Asset Management $7.4 $7.4 $7.4 $7.5 $7.6 $7.4 $7.4 $7.4 $7.2 Banking 17.5 14.1 12.9 12.7 15.4 12.6 12.5 11.4 13.6 FX Revenue 11.5 11.8 12.0 12.4 10.9 10.8 10.5 11.2 9.3 Trust 13.7 12.6 13.3 12.7 14.2 12.9 13.0 12.8 13.3 Custody & Other Admin. 3.4 3.3 3.3 3.6 3.9 3.7 3.8 3.8 3.4 Other 1.4 0.7 2.8 1.0 0.8 1.5 1.5 0.9 0.9 Total Non-Interest Income $54.9 $49.9 $51.8 $49.9 $52.7 $49.0 $48.8 $47.6 $47.8 Non-Interest Expense Salaries & Benefits\* $44.7 $42.0 $42.3 $41.0 $41.1 $42.0 $43.2 $39.0 $41.4 Technology & Comm. 14.3 14.3 14.0 14.1 15.7 16.3 15.7 16.1 16.1 Professional & O/S Services 4.3 4.8 5.4 5.1 5.6 5.7 4.9 5.2 5.3 Property 8.0 7.9 7.6 7.9 8.0 7.8 7.6 7.4 7.4 Indirect Taxes 5.4 5.2 5.5 5.9 5.5 5.4 5.4 5.8 5.1 Marketing 1.8 1.5 1.6 1.5 1.2 0.9 1.0 1.4 1.6 Intangible Amortization 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 Other 4.7 4.9 5.2 5.0 5.2 4.8 5.4 4.6 4.9 Total Non-Interest Expense $84.7 $82.0 $83.0 $82.0 $83.8 $84.4 $84.8 $80.9 $83.2 Income Taxes 0.7 0.9 1.1 1.0 0.8 0.8 0.8 0.7 0.1 Total Expense incld. Taxes $85.4 $82.9 $84.0 $82.9 $84.6 $85.2 $85.6 $81.7 $83.3 \*Includes non-service employee benefits Appendix Non-Interest Income & Expense Trends

------

![](currentearningsdeck022.jpg)

22 (in millions of US Dollars, unless otherwise indicated) 2022 2021 2020 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Salaries & Benefits\*\* $44.7 $42.0 $41.2 $41.0 $41.1 $42.0 $41.8 $39.0 $40.6 Technology & Comm. 14.3 14.3 14.0 14.1 15.7 16.3 15.7 16.1 16.1 Professional & O/S Services 4.2 4.7 5.4 4.9 5.5 5.6 4.9 5.2 5.3 Property 8.0 7.9 7.6 7.9 8.0 7.8 7.6 7.4 7.4 Indirect Taxes 5.4 5.2 5.5 5.9 5.5 5.4 5.4 5.8 5.1 Marketing 1.8 1.5 1.6 1.5 1.2 0.9 1.0 1.4 1.6 Intangible Amortization 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.5 1.5 Other 4.7 4.9 5.2 4.8 5.2 4.7 5.4 4.6 4.9 Total Core Non-Interest Expense $84.5 $81.8 $81.9 $81.6 $83.7 $84.2 $83.4 $80.9 $84.5 $82.4 Income Taxes 0.7 0.9 1.1 1.0 0.8 0.8 0.8 0.7 0.1 Total Core Expense incld. Taxes $85.3 $82.8 $83.0 $82.6 $84.5 $84.9 $84.2 $81.7 $82.5 \* See the reconciliation of non-GAAP measures on pages 23-24 \*\* Includes non-service employee benefits Appendix Core Non-Interest Expense\* Trends

------

![](currentearningsdeck023.jpg)

23 (in millions of US Dollars, unless otherwise indicated) 2022 2021 Q4 Q3 Q2 Q1 Q4 Net income A $63.1 $57.4 $49.1 $44.4 $41.7 Non-core expenses Early retirement program, voluntary separation, redundancies and other non-core compensation costs — — 1.0 — — Tax compliance review costs 0.1 0.2 — 0.1 0.1 Settlement of client-related tax inquiry — — — 0.2 — Total non-core expenses C $0.1 $0.2 $1.1 $0.3 $0.1 Total non-core (gains), losses and expenses D=B+C 0.1 0.2 1.1 0.3 0.1 Core net income to common shareholders E=A+D $63.2 $57.6 $50.2 $44.7 $41.7 Average shareholders' equity 791.2 799.0 804.6 912.8 965.2 Average common equity F 791.2 799.0 804.6 912.8 965.2 Less: average goodwill and intangible assets (73.4) (75.1) (80.0) (84.7) (86.6) Average tangible common equity G 717.8 723.9 724.6 828.1 878.5 Return on equity A/F 31.6 % 28.5 % 24.5 % 19.7 % 17.1 % Core return on average tangible common equity E/G 34.9 % 31.6 % 27.8 % 21.9 % 18.8 % Core earnings per common share fully diluted Adjusted weighted average number of diluted common shares (in thousands) H 50.0 49.8 49.8 49.8 49.8 Earnings per common share fully diluted A/H 1.26 1.15 0.99 0.89 0.84 Non-core items per share D/H 0.01 0.01 0.02 0.01 — Core earnings per common share fully diluted E/H 1.27 1.16 1.01 0.90 0.84 Core return on average tangible assets Total average assets I $13,863.7 $14,160.1 $14,793.3 $15,449.0 $15,180.6 Less: average goodwill and intangible assets (73.4) (75.1) (80.0) (84.7) (86.6) Average tangible assets J $13,790.3 $14,085.0 $14,713.3 $15,364.3 $15,094.0 Return on average assets A/I 1.8 % 1.6 % 1.3 % 1.2 % 1.1 % Core return on average tangible assets E/J 1.8 % 1.6 % 1.4 % 1.2 % 1.1 % Appendix Non-GAAP Reconciliation

------

![](currentearningsdeck024.jpg)

24 (in millions of US Dollars, unless otherwise indicated) 2022 2021 Q4 Q3 Q2 Q1 Q4 Tangible equity to tangible assets Shareholders' equity K $864.8 $754.9 $802.4 $841.8 $977.5 Less: goodwill and intangible assets (74.4) (71.9) (77.5) (82.9) (86.1) Tangible common equity L 790.4 683.0 725.0 758.9 891.4 Total assets M 14,306.1 13,699.3 14,349.9 15,266.0 15,335.2 Less: goodwill and intangible assets (74.4) (71.9) (77.5) (82.9) (86.1) Tangible assets N $14,231.7 $13,627.5 $14,272.5 $15,183.1 $15,249.1 Tangible common equity to tangible assets L/N 5.6 % 5.0 % 5.1 % 5.0 % 5.8 % Tangible book value per share Basic participating shares outstanding (in millions) O 49.7 49.6 49.6 49.6 49.3 Tangible book value per common share L/O 15.92 13.76 14.61 15.30 18.08 Efficiency ratio Non-interest expenses $84.7 $82.0 $83.0 $82.0 $83.8 Less: Amortization of intangibles (1.4) (1.4) (1.4) (1.5) (1.5) Non-interest expenses before amortization of intangibles P 83.3 80.6 81.6 80.5 82.3 Non-interest income 54.9 49.9 51.8 49.9 52.7 Net interest income before provision for credit losses 94.6 91.2 82.0 75.9 74.5 Net revenue before provision for credit losses and other gains/losses Q $149.5 $141.1 $133.8 $125.8 $127.2 Efficiency ratio P/Q 55.7 % 57.1 % 61.0 % 64.0 % 64.7 % Core efficiency ratio Non-interest expenses $84.7 $82.0 $83.0 $82.0 $83.8 Less: non-core expenses (C) (0.1) (0.2) (1.1) (0.3) (0.1) Less: amortization of intangibles (1.4) (1.4) (1.4) (1.5) (1.5) Core non-interest expenses before amortization of intangibles R 83.1 80.4 80.5 80.1 82.2 Net revenue before provision for credit losses and other gains/losses Q 149.5 141.1 133.8 125.8 127.2 Core efficiency ratio R/Q 55.6 % 57.0 % 60.2 % 63.7 % 64.7 % Appendix Non-GAAP Reconciliation (cont'd)

------

![](currentearningsdeck025.jpg)

25 Our peer group includes the following banks, noted by their ticker symbols: Appendix Peer Group • First Republic Bank (FRC) • SVB Financial Group (SIVB) • East West Bancorp, Inc. (EWBC) • Cullen/Frost Bankers, Inc. (CFR) • Associated Banc-Corp (ASB) • Wintrust Financial Corporation (WTFC) • Commerce Bancshares, Inc. (CBSH) • UMB Financial Corporation (UMBF) • First Hawaiian, Inc. (FHB) • Bank of Hawaii Corporation (BOH) • Trustmark Corporation (TRMK) • International Bancshares Corporation (IBOC) • Community Bank System, Inc. (CBU) • First Financial Bankshares, Inc. (FFIN) • Westamerica Bancorporation (WABC)

------