Butterfield reported net income of $42m or $0.79 per share for the third quarter compared to $38.6m or $0.72 per common share for the previous quarter.
The group's acquisition of ABN Amro (Channel Islands) had an impact on net earnings through higher expenses and lowered net interest margins as Butterfield acquired a larger multi-currency balance sheet.
"However, once the business normalises, we expect continued growth to long-term profitability from this acquisition," Michael Collins, Butterfield's chairman and chief executive officer, said in an earnings call.
We have been working to integrate ABN AMRO [Channel Islands] since the early close of the deal"
The core return on average tangible common equity1 for the third quarter of 2019 was 22.5%, compared to 24.6% for the previous quarter and 24.9% for third quarter of 2018. The core efficiency ratio1 for the third quarter of 2019 was 62.1% compared with 60.3% in the previous quarter and 63.2% in the third quarter of 2018.
Collins described the results as "solid", adding in a press release that the group was making "excellent progress" combining the acquired ABN AMRO [Channel Islands] business with its existing Guernsey bank.
"We have been working to integrate ABN AMRO (Channel Islands) since the early close of the deal on July 15, 2019. Client relationships and employee retention have been broadly stable throughout this period, while customer and staffing integration are progressing well. The expected decline in euro and sterling balances has begun as we apply a client value lens to the relationships. We have experienced the anticipated staff turnover and expect cost savings to match the levels contemplated when the deal was first announced in April.
"This is an important acquisition for Butterfield and we are pleased with the integration to date and the anticipated benefits. We continue to view this deal very favorably and believe that Butterfield's increased presence in the Channel Islands enhances our position as a leading bank and trust company in those core markets with increased scale and improved organic growth prospects."
Butterfield announced a $0.44 dividend, which will be paid on 15 Nov. to stockholders of record on 4 Nov.