Bank of NT Butterfield & Son Ltd (NTB) 2025 Q3 法說會逐字稿

Good morning. My name is Debbie and I will be your conference operator today. At this time, I would like to welcome everyone to the 3rd quarter, 2025 earnings call for the Bank of NT Butterfield & Son Ltd. (operator Instructions)

早安.我叫黛比，今天將由我擔任你們的會議接線生。在此，我謹代表NT Butterfield & Son Ltd.歡迎各位參加2025年第三季業績電話會議。（操作說明）

I would now like to turn the call over to Noah Fields, Butterfield's head of investor relations.

現在我將把電話交給巴特菲爾德投資者關係主管諾亞·菲爾茲。

Please go ahead. Thank You.

請繼續。謝謝。

Good morning, everyone, and thank you for joining us. Today we will be reviewing Butterfield's 3rd quarter, 2025 financial results. On the call, I'm joined by Michael Collins, Butterfield's Chairman and Chief Executive Officer, Michael Scrum, President and Chief Financial Officer, and Jody Feldman, managing director of Bermuda.

各位早安，感謝各位的參與。今天我們將回顧百達翡麗2025年第三季的財務表現。參與本次電話會議的有 Butterfield 董事長兼執行長 Michael Collins、總裁兼財務長 Michael Scrum 以及百慕達董事總經理 Jody Feldman。

Following their prepared remarks, we will open the call up for a question-and-answer session.

在他們發表完準備好的演講後，我們將開放問答環節。

Yesterday afternoon we issued a press release announcing our 3rd quarter of 2025 results. The press release and financial statements, along with a slide presentation that we will refer to during our remarks on this call, are available on the investor relations section of the website at /www.butterfieldgroup.com.

昨天下午，我們發布新聞稿，公佈了2025年第三季業績。新聞稿和財務報表，以及我們將在本次電話會議發言中提及的幻燈片演示文稿，均可在網站投資者關係部分（網址為 /www.butterfieldgroup.com）上查閱。

I turn the call over to Michael Collins, I would like to remind everyone that today's discussions will refer to certain non-GAAP measures which we believe are important in evaluating the company's performance. For reconciliation of these measures to USA, please refer to the earnings press release and slide presentation.

我把電話交給麥可‧柯林斯，我想提醒大家，今天的討論將涉及一些我們認為對評估公司績效很重要的非GAAP指標。有關這些措施與美國數據的對比，請參閱獲利新聞稿和幻燈片簡報。

Today's call and associated materials may also contain certain forward-looking statements which are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these risks can be found in our SEC filings. I will now turn the call over to.

現今的電話會議及相關資料可能包含某些前瞻性陳述，這些陳述受到風險、不確定性及其他因素的影響，可能導致實際結果與這些陳述所預期的結果有重大差異。有關這些風險的更多信息，請參閱我們向美國證券交易委員會提交的文件。現在我將把通話轉交給…

Thank you, Noah, and thanks to everyone joining the call today. I am pleased with our strong 3rd quarter results which continue to demonstrate our ability to drive long-term value. Our financial performance was supported by solid net interest income, discipline, capital management, and a conservative and stable balance sheet.

謝謝你，諾亞，也謝謝今天所有參加電話會議的人。我對我們強勁的第三季業績感到滿意，這繼續證明了我們創造長期價值的能力。我們的財務表現得益於穩健的淨利息收入、嚴謹的經營紀律、良好的資本管理、保守且穩定的資產負債表。

We delivered higher non-interest revenue and improved efficiency across the organization, underpinning our continued profitability and growth. Warfield is a leading offshore bank and wealth manager with franchise level market shares in Bermuda and the Cayman Islands and a growing retail banking presence in the Channel Islands. We offer a full suite of services from trust and private banking to asset management and custody.

我們實現了更高的非利息收入，並提高了整個組織的效率，從而鞏固了我們持續的獲利能力和成長。Warfield 是一家領先的離岸銀行和財富管理公司，在百慕達和開曼群島擁有特許經營級別的市場份額，並在海峽群島擁有不斷增長的零售銀行業務。我們提供全方位的服務，從信託和私人銀行到資產管理和託管。

Tailored to meet the needs of our clients across these markets. We also serve international private trust clients in the Bahamas, Switzerland, and Singapore and provide high net worth mortgage lending for prime London properties from our London office.

量身定制，以滿足我們在這些市場中客戶的需求。我們也為巴哈馬、瑞士和新加坡的國際私人信託客戶提供服務，並透過我們位於倫敦的辦事處為倫敦黃金地段的房產提供高淨值抵押貸款。

I will now turn to the 3rd quarter highlights on page 4.

接下來，我將翻到第 4 頁，介紹第三季的精彩片段。

Butterfield reported net income of $61.1 million and core net income of $63.3 million. We reported core earnings per share of $1.51 with a core return on average tangible common equity of 25.5% in the third quarter.

Butterfield公佈的淨利為6,110萬美元，核心淨利為6,330萬美元。第三季度，我們公佈的核心每股收益為 1.51 美元，核心有形普通股平均回報率為 25.5%。

The net interest margin was 2.73% in the third quarter, an increase of 9 basis points from the prior quarter, with the cost of deposits falling 9 basis points to 147 basis points from the prior quarter.

第三季淨利差為 2.73%，較上一季成長 9 個基點；存款成本較上一季下降 9 個基點至 147 個基點。

We again are announcing a quarterly cash dividend of $0.50 cents per share.

我們再次宣布派發每股 0.50 美元的季度現金股利。

During the quarter, we continued to repurchase shares with a total of 700,000 shares at a cost of $30.3 million.

本季度，我們繼續回購股票，共回購了 70 萬股，成本為 3,030 萬美元。

We continue our active capital management and plan to return excess capital that we do not require to support the business and growth initiatives. I will now turn the call over to Jody for an update on our Bermuda and Cayman markets and businesses.

我們將繼續積極進行資本管理，並計劃將我們不需要用於支持業務和成長計劃的多餘資本返還給投資者。現在我將把電話交給 Jody，請她介紹我們百慕達和開曼群島的市場和業務的最新情況。

Thank you, Michael. During the 3rd quarter, Bermuda's business environment remained stable with continued expansion of international business and the local economy showing signs of growth.

謝謝你，麥可。第三季度，百慕達的商業環境保持穩定，國際業務持續擴張，當地經濟也呈現成長跡象。

The government is forecasting its first budget surplus in over 2 decades, and with corporate income tax introduced this year, there are expectations this will generate meaningful revenue that could help ease cost of living and business pressures while reducing sovereign debt over time. Overall, the outlook is positive for Bermuda's fiscal position, with solid performance and growth continuing in the international business sector, particularly in reinsurance.

政府預計這將是二十多年來的首次預算盈餘，隨著今年引入企業所得稅，預計這將產生可觀的收入，有助於緩解生活成本和企業壓力，並隨著時間的推移減少主權債務。整體而言，百慕達的財政狀況前景樂觀，國際商業領域，特別是再保險領域，將繼續保持穩健的業績和成長。

Tourism in Bermuda had a good 2025 season, supported by improved hotel occupancy rates. Average daily rates were up 10% August year-to-date, with occupancy levels remaining stable. Air arrivals are steady and visitor expenditure is up 2% despite a lower overall room inventory. Looking ahead, airlift capacity and hotel inventory are expected to benefit from ongoing foreign direct investments in the island's hospitality infrastructure.

2025年，百慕達旅遊業發展良好，飯店入住率提高。截至8月份，平均每日房價較上年同期上漲10%，入住率維持穩定。儘管整體客房供應量下降，但航空入境人數保持穩定，遊客支出增加了 2%。展望未來，預計該島酒店基礎設施的持續外國直接投資將促進航空運輸能力和酒店庫存的成長。

The 593 room Fairmont Southampton is currently projected to reopen in summer 2026, while Grotto Bay Beach Resort has announced expansion plans. Additionally, the announced complete redevelopment of Elbow Beach Resort, expected to commence in 2026, reflects overall investor confidence in the long-term prospects for Bermuda's hospitality sector.

擁有 593 間客房的費爾蒙南安普敦酒店目前預計將於 2026 年夏季重新開業，而格羅托灣海灘度假村已宣布了擴建計劃。此外，預計 2026 年開始的 Elbow Beach Resort 全面重建計劃，也反映出投資者對百慕達酒店業長期前景的整體信心。

Bermuda will also gain visibility from major international events including the PGA Tour Butterfield Bermuda championship and Sail GP, a high-speed global professional sailing league set to return in May 2026, further reinforcing the island's position as a premier tourism and event destination. The Cayman Islands continues to enjoy steady population and financial services growth, with a 2.5% GDP increase expected in 2025. A number of major residential and mixed use projects nearing completion reflects sustained demand and confidence across the property market.

百慕達也將透過 PGA 巡迴賽百慕達錦標賽和將於 2026 年 5 月回歸的高速全球職業帆船聯賽 Sail GP 等重大國際賽事獲得關注，進一步鞏固該島作為首屈一指的旅遊和活動目的地的地位。開曼群島人口和金融服務業持續穩定成長，預計 2025 年 GDP 將成長 2.5%。多個大型住宅和綜合用途項目即將竣工，反映出房地產市場持續的需求和信心。

Financial services and tourism remain key pillars of the economy, representing approximately 50% and 35% of GDP respectively. Through adherence to its fiscal responsibility framework, the government maintains discipline that keeps the budget generally close to balance.

金融服務和旅遊業仍然是經濟的重要支柱，分別佔國內生產毛額的約 50% 和 35%。政府透過堅持財政責任框架，維持財政紀律，使預算整體接近平衡。

Looking ahead, growth is expected to continue at a measured pace following several years of rapid expansion.

展望未來，在經歷了數年的快速擴張之後，預計成長將繼續保持穩健的步伐。

I will now turn the call over to Michael Scrum for more detail on the quarter. Michael.

現在我將把電話轉給邁克爾·斯克魯姆，讓他詳細介紹一下本季的情況。麥可。

Thank you, Jody, and good morning.

謝謝你，喬迪，早安。

On slide 6, we provide a summary of net interest income and net interest margin.

在第 6 張投影片中，我們提供了淨利息收入和淨利差的概要。

In the third quarter, we reported net interest income before provision for credit losses of $92.7 million an improvement of $3.3 million or 3.7% from the prior quarter. The net interest margin increased 9 basis points to 2.73% compared to 2.64% in the prior quarter. This increase is largely due to lower cost of deposits. And the redemption of the subordinated debt during the second quarter.

第三季度，我們報告稱，在提列信貸損失準備金之前，淨利息收入為 9,270 萬美元，比上一季增加了 330 萬美元，增幅為 3.7%。淨利差較上一季的 2.64% 成長 9 個基點，達到 2.73%。這一增長主要是由於存款成本降低所致。以及在第二季償還次級債務。

Average loan balances were slightly lower compared to the prior quarter, predominantly driven by lower originations relative to amortization and to a lesser extent the impact on foreign exchange translation from the weakening of the pound sterling against the US dollar. Average interest earning assets in the third quarter decreased $132.3 million to $13.5 billion.

平均貸款餘額較上一季略為下降，主要原因是貸款發放量相對於攤銷額有所下降，其次是英鎊兌美元貶值對外匯折算的影響。第三季平均生息資產減少 1.323 億美元，至 135 億美元。

Treasury and loan yields were 7 basis points lower, while average investment yields were unchanged at 2.67%. During the quarter, the bank continued to pursue its conservative strategy of reinvesting the pay downs of investment maturities into a mix of US agency MBS securities and medium-term US Treasuries. Slide 7 provides a summary of non-interest income, which totals $61.2 million an increase of $4.2 million over the last quarter. This was due to higher banking fees which benefited from growth in card volumes and incentive programs.

國債和貸款收益率下降了 7 個基點，而平均投資收益率保持不變，為 2.67%。本季度，該銀行繼續奉行其保守策略，將投資到期所得款項再投資於美國機構抵押貸款支持證券和中期美國國債的組合。第 7 頁投影片提供了非利息收入的概要，總計 6,120 萬美元，比上一季增加了 420 萬美元。這是由於銀行手續費上漲所致，而銀行手續費上漲又得益於信用卡交易量的成長和激勵計畫的實施。

Foreign exchange revenues also rose as volumes increased in the 3rd quarter. The fee-income ratio increased to 39.9% compared to the prior quarter, continuing to compare favorably to historical peer averages. On slide 8, we present core non-interest expenses. Core non-interest expenses decreased compared to the prior quarter from lower performance-based incentive accruals included within core salaries and benefits. Property expenses also declined. Benefiting from a consolidation of premises in the General Islands.

第三季度，隨著交易量的增加，外匯收入也有所成長。與上一季相比，手續費收入比率上升至 39.9%，持續優於歷史同業平均。第 8 張投影片展示了核心非利息支出。由於核心薪資福利中包含的績效激勵應計項目減少，核心非利息支出較上一季下降。物業支出也有所下降。受益於在群島地區的辦公室整合。

In addition, indirect taxes were lower, reflecting reduced payroll taxes and work permit fees. Slide 9 shows that Butterfield's balance sheet remains liquid and conservatively positioned. Period and deposit balances were in line with prior quarters. Butterfield's low risk density of 28% continues to reflect the regulatory capital efficiency of the balance sheet.

此外，間接稅也較低，反映出薪資稅和工作許可證費用的減少。投影片 9 顯示 Butterfield 的資產負債表仍然具有流動性，並且處於保守的財務狀況。期間餘額和存款餘額與前幾季持平。Butterfield 28% 的低風險密度持續反映出其資產負債表的監理資本效率。

On slide 10, we show that Butterfield's. Quality remains very strong. The investment portfolio carries low credit risk consisting entirely of AA or higher rated US Treasuries and government guaranteed agency securities. Credit performance in our loan and mortgage portfolios was stable this quarter. Net chargeoffs were negligible, non-accrual loans held at 2%, and our allowance for credit losses stayed at 0.6%. Our loan book remains 70% full recourse residential mortgages, with nearly 80% having gone to values below 70%.

在第 10 張幻燈片中，我們展示了 Butterfield 的。品質依然非常出色。該投資組合信用風險較低，全部由AA級或以上評級的美國國債和政府擔保機構證券組成。本季我們貸款和抵押貸款組合的信貸表現保持穩定。淨沖銷額微乎其微，非應計貸款維持在 2%，信貸損失準備金維持在 0.6%。我們的貸款組合中仍有 70% 為全追索權房屋抵押貸款，其中近 80% 的貸款價值已降至 70% 以下。

We continue to take a conservative underwriting approach focusing on high-quality residential lending across our Bermuda, the Cayman Islands, and the UK and Channel Islands segments.

我們繼續採取保守的承銷方式，專注於在百慕達、開曼群島、英國和海峽群島等地區提供高品質的住宅貸款。

On slide 11, we present the average cash and securities balances with a summary of interest rate sensitivity.

第 11 張投影片展示了平均現金和證券餘額，並總結了利率敏感性。

Net unrealized losses in the FS portfolio included in OCI were $101.5 million at the end of the third quarter, an improvement of $18.5 million over the prior quarter. Interest rate sensitivity has reduced slightly against the prior quarter, driven by a reduction in short-term investments that were deployed into fixed rate investments.

截至第三季末，包含在其他綜合收益中的金融服務組合的未實現淨損失為 1.015 億美元，比上一季減少了 1,850 萬美元。由於短期投資減少並轉向固定利率投資，利率敏感度較上一季略有下降。

We continue to expect improvement with additional burn down of OCI over the next 12months to 24 months of 31% and 37% respectively.

我們預計未來 12 個月至 24 個月內，隨著 OCI 的進一步消耗，情況將分別改善 31% 和 37%。

Slide 12 summarizes regulatory and leverage capital levels. The board of directors has once again approved the quarterly dividend of $0.50 per share. TCE to TA continues to be conservatively above our targeted range of 6% to 6.5%. Finally, our tangible book value per share continued to improve this quarter by 5.4% to $25.06 as unrealized losses on investments improved.

第 12 張投影片總結了監管和槓桿資本水準。董事會再次批准了每股0.50美元的季度股息。TCE 與 TA 的比率繼續保守地高於我們設定的 6% 至 6.5% 的目標範圍。最後，由於投資未實現損失有所改善，本季我們的每股有形帳面價值持續成長 5.4%，達到 25.06 美元。

I will now turn the call back to Michael Collins.

現在我將把電話轉回給麥可柯林斯。

Thank Michael. Butterfield's presence in leading international financial centers provides a strong foundation for continued growth, both through disciplined M&A and organic business development. Our balance sheet and liquidity position remain conservative and fully aligned with business model and regulatory frameworks.

謝謝你，麥可。百慕達在領先的國際金融中心擁有穩固的業務基礎，這為持續成長奠定了堅實的基礎，無論是透過嚴謹的併購或有機業務發展。我們的資產負債表和流動性狀況保持穩健，與業務模式和監管框架完全一致。

Our capital efficient fee-based businesses continue to deliver differentiated products and services to meet the needs of our clients. As we move forward, we remain focused on enhancing operational efficiency and maintaining prudent expense discipline. Capital management remains a core component of our strategy.

我們以高效資本運作為基礎的收費業務持續提供差異化的產品和服務，以滿足客戶的需求。展望未來，我們將繼續專注於提高營運效率並維持審慎的費用控制。資本管理仍然是我們策略的核心組成部分。

The strength of our earnings generation allows a balanced approach, funding sustainable cash dividends, supporting organic growth, pursuing strategic and accretive acquisition opportunities, and repurchasing common shares. A field is well positioned to support our clients and create long-term value for our communities and shareholders. Thank you.

我們強勁的獲利能力使我們能夠採取平衡的策略，為可持續的現金股息提供資金，支持內生成長，尋求策略性和增值性的收購機會，以及回購普通股。該領域擁有得天獨厚的優勢，能夠為我們的客戶提供支持，並為我們的社區和股東創造長期價值。謝謝。

And with that, we would be happy to take your questions, operator.

那麼，我們很樂意回答您的問題，接線員。

David Pfister, Raymond James

大衛普菲斯特，雷蒙德詹姆斯

Hi, good morning, everybody.

大家早安。

Morning, David.

早安，大衛。

I just wanted to, I wanted to start, curious how you think about the margin trajectories forward. There are a lot of puts and takes here right now. You got the likelihood of Fed cuts. You got also a pretty substantial repricing tailwind as well. And then you got the lagging impact of repricing on deposits. I was hoping you could help us think about the margin trajectory, and maybe where we could bottom out if the forward curve does come to fruition.

我只是想，我想開始，很好奇你對未來利潤率走勢的看法。現在這裡有很多買賣交易。聯準會降息的可能性很大。此外，你們也獲得了相當大的重新定價利好因素。然後，你也會看到重新定價對存款的延遲影響。我希望您能幫助我們思考利潤率的走勢，以及如果遠期曲線最終實現，我們能否觸底反彈。

Yes, good morning, David. It's Michael Schrum. So yes, there are a lot of moving parts, I think, we saw deposit costs come down this quarter, just starting off, like I think the exit run rates of the quarter were brought in line at a margin of 271 and cost deposit at 145.

是的，早上好，大衛。他是麥可·施魯姆。是的，有很多變數，我認為，我們看到本季存款成本下降了，剛開始的時候，我認為本季的退出運行率調整到了 271 的利潤率，存款成本為 145。

As we look forward, we do have some room on the deposit side. There's about 10 billion of interest earning deposits, so. We could see in the short, and these are relatively short deposit, 3months to 6 months term deposits and some demand interest-bearing so we could obviously see some of that being beneficial to us.

展望未來，我們在存款方面還有一些空間。大約有100億的計息存款。我們可以看到，短期存款，尤其是3個月至6個月的定期存款和一些活期計息存款，顯然對我們有利。

And then as we look at the investment securities, we're sort of thinking at the moment, certainly for the quarter it's about a 150 or 150 based on uplift on reinvestment over the coming sort of 12 months we have about a billion of AFS and HTM assets, that are going to be price so that's going to be again very beneficial and that's something that we're clearly focused on. And then finally on the loan side.

然後，當我們審視投資證券時，我們目前的想法是，至少就本季而言，基於未來 12 個月再投資帶來的收益，大約是 150 或 150。我們擁有約 10 億美元的 AFS 和 HTM 資產，這些資產的價格將會上漲，這將再次帶來非常有利的影響，這也是我們顯然關注的重點。最後是貸款方面。

This quarter we've sort of seen broadly a 100 basis point uplift between the fixed rate resetting loans and the new lending that we put into the book. So over the next about 12 months we have about $400 million of loans we're setting as well.

本季度，固定利率重置貸款和我們新增貸款之間的利率大致上升了 100 個基點。因此，在接下來的大約 12 個月裡，我們還將發放約 4 億美元的貸款。

Obviously, some of that will depend on customer preference. We've seen a little bit of a mixed shift into floating over the last quarter, last couple of quarters, so we're now at 54% floating and where we used to be more like a 50/50, so. And then finally, the yield curve, if we get a steep inner, obviously that's going to be very beneficial. If we get a sort of lag in short rates going down, that's going to dampen the impact on the negative effect on the margin. So I think, withina handful of basis points we could probably see the next or the current outlook would be for them to be relatively stable, maybe expanding a little bit as we get this tailwind of asset repricing.

顯然，其中一些因素取決於顧客的喜好。在過去的幾個季度裡，我們看到浮動利率債券和固定利率債券的比例略有變化，目前浮動利率債券佔比為 54%，而以前兩者的比例約為 50/50。最後，殖利率曲線，如果我們得到一個陡峭的內隱曲線，顯然這將非常有利。如果短期利率下降出現一定的滯後，這將減弱對利潤率的負面影響。所以我認為，在幾個基點的範圍內，我們可能會看到下一個或當前的展望是它們相對穩定，也許會隨著資產重新定價的順風而略有擴張。

That's extremely helpful caller, and then Michael Collins, you talked about some of the unique products and services that you've got in the fee income lines, in the trust and asset management business, you obviously open to some unique and differentiated assets. I'm just curious, how do you think about crypto or stablecoins? Is that something that's on your radar? Is that something your clients are even asking about? Just, curious your thoughts on that is some of the larger, US companies seem to be exploring it to some degree.

這位來電者提供的幫助非常大。邁克爾·柯林斯，您談到了您在收費收入、信託和資產管理業務方面的一些獨特產品和服務，顯然您也對一些獨特和差異化的資產持開放態度。我只是好奇，您對加密貨幣或穩定幣有什麼看法？這是你關注的重點嗎？你的客戶會問到這個問題嗎？只是好奇你對此有何看法，因為一些規模較大的美國公司似乎正在一定程度上探索這種可能性。

I think we describe ourselves as a slow follower watching closely. We're not getting a lot of pressure from clients. I mean just in terms of maybe in terms of custody and that sort of thing for a digital assets.

我認為我們可以把自己描述成一個密切關注的慢速追隨者。我們沒有受到客戶的巨大壓力。我的意思是，就數位資產的託管之類的方面而言。

Stablecoin's obviously something we're watching closely, but I think the approach we would take is To piggyback off our correspondent banks. So Bank of New York obviously is heavily analyzing and participating in this sector of the market, and we would piggyback off that, which actually provides us with a lot of safety and cover. It's not something that we would take the lead on in any sense, but you're right, the fee income lines are really well diversified, so we've got trust.

穩定幣顯然是我們密切關注的領域，但我認為我們會採取的方法是藉助我們的代理銀行的力量。顯然，紐約銀行正在大力分析和參與這個市場領域，而我們將依託於此，這實際上為我們提供了極大的安全保障。我們不會在任何方面主動做這件事，但你說得對，我們的費用收入來源非常多元化，所以我們有信心。

Foreign exchange, banking fees, custody, but foreign exchange, I think is what makes us pretty unique compared to US regional banks, and we had a very good quarter there and we're continuing to look for acquisitions on the fee income side, so very focused on private trusts in the jurisdictions in which. Already operate and we're having constructive discussions, nothing to announce at this point, but you know our goal is to continue to increase our fee income ratio, as rates as rates start to change. So we're watching, but I would say we're very conservative. We've talked about in the past. We have no lender of last resort.

外匯、銀行手續費、託管，但我認為外匯是我們與美國地區性銀行相比非常獨特的地方，我們在這一季度表現非常好，我們正在繼續尋找手續費收入方面的收購機會，因此非常專注於我們所在司法管轄區的私人信託。我們已經開始運營，並且正在進行建設性的討論，目前沒有什麼可以宣布的，但是您也知道，我們的目標是隨著費率的變化，繼續提高我們的費用收入比率。所以我們正在密切關注，但我認為我們的態度非常保守。我們以前討論過這個問題。我們沒有最後貸款人。

We are not going to take the lead in these sorts of things, but we will piggyback off our correspondent banking relationships.

我們不會在這些事情上起到帶頭作用，但我們會利用我們與代理銀行的關係來推動這些事情。

That's a great color. And then, just last one, just you guys have done a great job managing expenses, we moved more back office to Halifax. We had the early retirement, consolidated some back office space, in the Channel Islands, I believe it was just curious, what other initiatives are on the horizon and just how you, how do you think about expenses going forward and your ability to continue to drive positive operating leverage?

這個顏色真好看。最後，你們在費用管理方面做得非常出色，我們把更多的後台辦公地點搬到了哈利法克斯。我們提前退休了，整合了一些後台辦公空間，在海峽群島，我相信這只是出於好奇，未來還有哪些舉措，以及您如何看待未來的支出以及您繼續推動積極運營槓桿的能力？

Yes, no thanks, David. It's Michael Scrum. So obviously great quarter this quarter. We did have some non-core expenses in this quarter related to some of the retirement of Zen executives.

不用了，謝謝，大衛。他是邁克爾·斯克魯姆。顯然，本季業績非常出色。本季我們確實有一些與 Zen 部分高階主管退休相關的非核心支出。

And I think, we've said before, we're sort of thinking if we can stave off the inflationary pressures in the system with some of those expense initiatives moving back office functions to Halifax, that'll be great as we are starting to see, some pick up in pipeline on loans and interest net interest income seems to be relatively stable. So, really it's the same thing. We, we've obviously gone through a lot of investments into our infrastructure.

而且我認為，正如我們之前所說，我們正在考慮，如果我們能夠通過一些支出控制措施，將後台職能轉移到哈利法克斯，來緩解系統中的通膨壓力，那將是件好事，因為我們開始看到貸款業務有所回升，淨利息收入似乎也相對穩定。所以，實際上是一樣的。顯然，我們已經對基礎設施進行了大量投資。

So, we did a cloud migration of our core banking system, last year, and, we're just catching up on the patch sets, of those. So that while that's truncated the expense run rate a little bit higher because we're using software as a service, we're gradually exiting some of the some of the older or out of date systems that we've been using. So I think broadly speaking, it was a little good improvement this quarter. We should be thinking about the $90 million dollar run rate. As a good sort of estimate for the future, at least for the near to medium term, and then as some of the things that we're thinking about is exactly continuing to move back office functions to Halifax.

所以，去年我們對核心銀行系統進行了雲端遷移，現在我們正在趕這些系統的修補程式。因此，雖然由於我們使用軟體即服務，導致支出運行率略有上升，但我們正在逐步淘汰一些我們一直在使用的較舊或過時的系統。所以總的來說，我認為本季略有好轉。我們應該考慮9000萬美元的年均收入。對未來，至少在中短期內，我們可以做出一個比較好的估計，而我們正在考慮的一些事情正是繼續將後台職能轉移到哈利法克斯。

Okay, that's helpful. Thanks everybody.

好的，這很有幫助。謝謝大家。

Thanks.

謝謝。

Tim Switzer, KBW.

提姆‧斯威策，KBW。

Hey, good morning. Thanks for taking my questions.

嘿，早安。謝謝您回答我的問題。

Morning, Tim.

早安，提姆。

You guys have already touched on this a little bit, but really strong momentum across, your fee income businesses here. Could you provide just a little bit more commentary on what drove the pretty significant upside in banking here, quarter after quarter and year every year very strong.

你們之前已經稍微提到過這一點，但你們的收費收入業務確實發展勢頭強勁。您能否再詳細談談是什麼因素推動了銀行業如此顯著的上漲，而且這種上漲勢頭每年都非常強勁？

And then are you able to kind of give us an idea of, were there any kind of like non-recurring revenues in there, kind of one-offs, and I know Q4 is usually seasonally strong, but will be maybe not quite as strong just given the performance in Q3, on like a relative basis.

那麼，您能否大致說明一下，其中是否有任何非經常性收入，或是一次性收入？我知道第四季度通常是季節性強季度，但考慮到第三季度的表現，相對而言，第四季度可能不會那麼強勁。

Yes, thanks, Tim. Yes, so banking has been very strong, continues to be obviously, a really solid and very capital efficient line for us. The combination of banking really is a sort of recurring of periodic fees, which are sort of ending fees and then a combination of that plus the Car services fees or transaction related fees, and we've really seen an uptick in volumes and that uptick in volumes with our on our card product really has also driven some incentive accrual increases this quarter. So there wasn't really any, anything to call out, particularly tourism related card services fees. We're both an acquirer and an issuer.

是的，謝謝你，提姆。是的，銀行業一直非常強勁，而且顯然還會繼續保持強勁勢頭，對我們來說，它是一個非常穩健且資本效率很高的業務板塊。銀行業務實際上是一種週期性費用的循環收取，這些費用類似於期末費用，再加上汽車服務費或交易相關費用，我們已經看到交易量有所上升，而我們信用卡產品的交易量上升也確實推動了本季度一些激勵累積的增長。所以並沒有特別需要特別指出的問題，尤其是與旅遊相關的信用卡服務費。我們既是收購方又是發行方。

Has just benefited us quite tremendously over the summer as Bermuda's had a pretty good tourism season, so that's been an uptick there and by all means Cayman looks to be in decent shape for this for this upcoming tourism season as well.

今年夏天，百慕達的旅遊旺季相當不錯，這給我們帶來了巨大的好處，所以那裡的旅遊業有所增長，而且開曼群島看起來也為即將到來的旅遊旺季做好了充分的準備。

FX is we don't take any proprietary positions, as but these are really commission-based FX exchange revenues, and I think clients have just taken the opportunity to rebalance a little bit as we've seen some movements in foreign exchange rates. And so that's driven volume in there. There were a couple of, sizable deals that we did for some private trust clients in the FX side, but nothing really to call out. It may be a little bit seasonal, but, we're pretty constructive on the outlook.

外匯方面，我們不持有任何自有頭寸，因為這些實際上是基於佣金的外匯交易收入，我認為客戶只是藉此機會稍微調整了一下投資組合，因為我們看到了外匯匯率的一些波動。因此，這推動了該地區的交易量。我們在外匯方面為一些私人信託客戶做了幾筆數額較大的交易，但沒有什麼特別值得一提的。雖然可能有點季節性因素，但我們對前景相當樂觀。

Okay, great, that was really helpful and then I appreciate the kind of overview you gave across your different jurisdictions and the growth there. Which jurisdictions are you expecting to be driving the most growth from a loan and deposit perspective over the next year or so and you know what are like some of the loan categories that you have the most opportunity in?

好的，太好了，這真的很有幫助。我非常感謝您對不同轄區及其發展的概述。在未來一年左右的時間裡，您預計哪些地區的貸款和存款成長最為強勁？您認為哪些貸款類別最具發展潛力？

Yes, maybe I'll start on deposits and Jody can just comment on little pipelines, etc.

是的，或許我可以先從存款方面入手，然後喬迪可以對一些小型管道之類的東西發表意見。

I mean, deposits continue to be a little bit elevated for us. I think we, we've certainly seen some significant movements. It's netted out to be not very much movement this quarter, but We have seen some sizable client inflows which are probably masking a little bit of the outflow, so we continue to expect that deposit levels will sort of come down a little bit.

我的意思是，我們的存款額仍然略高。我認為我們確實看到了一些重大進展。本季整體變動不大，但我們看到一些相當可觀的客戶資金流入，這可能掩蓋了一些資金流出，因此我們仍然預計存款水準會略有下降。

I think Bermuda has certainly seen the most growth in the deposits and normally in the 4th quarter we would see a little bit of a seasonal increase in Cayman as, funds kind of rebalance their cash out in the fund and cash out with us as an intermediary. So really that's it on the sort of mid-market corporate side. I think deposit levels have been increasing in the Channel Islands as well as we've sort of pivoted a little bit more to a retail growth strategy there, and I think that's great to see more sticky deposits.

我認為百慕達的存款成長無疑是最大的，通常在第四季度，我們會看到開曼群島的存款出現一些季節性增長，因為基金會重新平衡其在基金中的現金提取，並透過我們作為中介機構提取現金。所以，中型企業市場方面的情況就基本上就是這樣了。我認為海峽群島的存款水準也在增加，因為我們在那裡已經稍微轉向了零售成長策略，我認為看到更多穩定的存款是件好事。

And a better composition of deposits in that segment, but it is, as with retail clients, it's a pretty slow growth, in terms of the impact overall, and I'll let Jody just cover little pipelines. Sure.

該領域的存款組成有所改善，但與零售客戶一樣，就整體影響而言，成長速度相當緩慢，我將讓 Jody 來介紹一些小規模的業務。當然。

Hey Tim, it's Jody Feldman. I would just comment, quickly on loans. I mean, as we're not a loan growth story at Butterfield, and we're not going to be stretching for credit at this point. Obviously we maintain a low risk density balance sheet and we're very conservative with our underwriting and that's not going to change. That being said, we are seeing some encouraging signs in the loan pipeline, particularly in Cayman, a slight pick up in Bermuda due to kind of macro backdrop, which is encouraging, but I think it's pretty consistent from, previous times.

嘿，提姆，我是喬迪‧費爾德曼。我只想簡單談談貸款方面的問題。我的意思是，Butterfield 的業務重點不是貸款成長，我們目前也不會為了增加信貸而冒險。顯然，我們保持著低風險密度的資產負債表，並且在承保方面非常保守，這一點不會改變。話雖如此，我們看到貸款業務出現了一些令人鼓舞的跡象，尤其是在開曼群島，百慕達也因宏觀經濟背景而略有回升，這令人鼓舞，但我認為這與以往的情況相當一致。

Interesting. Got it. Thank you for all the color. Thanks.

有趣的。知道了。感謝你們帶來的所有色彩。謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想把會議交還給管理階層，請他們作總結發言。

Thanks, Debbie, and thanks to everyone for dialing in today. We look forward to speaking with you again next quarter. Have a great day.

謝謝黛比，也謝謝今天所有撥入電話的朋友。我們期待下個季度再次與您交流。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。