Bank of N.T. Butterfield & Son Limited (The)

Good morning. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter 2025 earnings call for the Bank of N.T. Butterfield and Sun Limited. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the call over to Noah Fields, Butterfield's Head of Investor Relations.

Thank you. Good morning, everyone, and thank you for joining us. Today, we will be reviewing Butterfield's second quarter 2025 financial results. On the call, I am joined by Michael Collins, Butterfield's Chairman and Chief Executive Officer, Craig Bridgewater, Group Chief Financial Officer, and Michael Scrum, President and Group Chief Risk Officer. Following their prepared remarks, we will open the call up for a question and answer session. Yesterday afternoon, we issued a press release announcing our second quarter 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 our website at www.butterfieldgroup.com. Before 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 US GAAP, please refer to the earnings press release and slide presentation. 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 Michael Collins.

Thank you, Noah, and thanks to everyone joining the call today. I am encouraged by our strong second quarter results, which continue to demonstrate our focus on sustainable, profitability, and creating shareholder value. Performance was driven by solid net interest income, diversified fee revenue, prudent expense management, and a strong, stable balance sheet. The Butterfield franchise continues to generate long-term value in a dynamic external environment. Butterfield stands as a market leader in offshore banking and wealth management, with universal banking models in Bermuda and the Cayman Islands, complemented by an expanding retail presence in the channel ounce. Our comprehensive suite of wealth management solutions spans trust services, private banking, asset management, and custody, tailored to meet the sophisticated needs of clients in these island jurisdictions. Our tailored wealth management services are also available to customers in the Bahamas, Switzerland, and Singapore, while we provide high net worth mortgage lending for properties located in prime central London. I will now turn to the second quarter highlights on page four. Butterfield reported high quality financial results in the quarter with net income of $53.3 million and core net income of $53.7 million. We reported core earnings per share of $1.26 with a core return on average tangible common equity of 22.3% in the second quarter. The net interest margin of 2.64% in the second quarter was a modest decline of six basis points from the prior quarter, with the cost of deposits falling four basis points to 156 basis points from the prior quarter. During the second quarter, the bank completed the early redemption of its $100 million subordinated debt, which resulted in the immediate recognition of $1.2 million of unamortized issuance costs and a two basis point one-time negative impact on NIM. With the redemption of the subordinated debt, we also took the opportunity to review the bank's overall capital levels and capital return strategy. Over the past five years, we've increased stable fee revenue through M&A and significantly reduced the number of shares outstanding following our share repurchase programs. As a result, we are now rebalancing our capital return strategy with a 14% increase to the quarterly cash dividend rate to 50 cents per share. The Board has approved this increase in the dividend rate as well as a new share repurchase authorization of 1.5 million shares to commence following completion of the current program. During the second quarter, we continue to repurchase shares with a total of 1.1 million shares in the second quarter at an average price of $40.69 per share. Finally, we had a few Board composition changes during this quarter. We would like to take a moment to thank Sonya Baxendale, for her commitment and guidance during her five-year tenure in Butterfield's Board of Directors. Due to other time commitments and opportunities, Sonya has chosen not to stand for reelection at the bank's AGM this past May, and we wish her all the best in her future endeavors. Yesterday, we also announced the appointment of Andrew Hinton to the Board of Directors. Andrew has been serving as a director for Butterfield's subsidiary banking business in the Channel Islands, and I am very pleased to welcome him to the group board. Andrew brings an extensive knowledge of governance, private banking, private equity, and investment banking to Butterfield, and I look forward to his continuing contributions. I will now turn the call over to Craig for details on the second quarter.