HAMILTON, Bermuda - The Bank of N.T. Butterfield & Son Limited has unveiled a new share repurchase program, reflecting its commitment to returning value to shareholders. The Bermuda-based bank's Board of Directors has approved a $90 million initiative to buy back up to 3.5 million shares, starting from December 15, 2023, and extending through December 31, 2024.
This strategic move follows the bank's successful capital generation since its debut on the New York Stock Exchange in 2016. CEO Michael Collins expressed confidence in the bank's ability to continue delivering shareholder returns through both dividends and buybacks. He highlighted that the strong capital position of the bank has been a key factor in launching this new share repurchase program.
The execution of the buyback will be informed by market conditions and may involve various mechanisms such as transactions under SEC Rule 10b5-1, which allows companies to repurchase their own shares at times when they might otherwise be prevented from doing so due to insider trading laws or self-imposed blackout periods.
Butterfield, with its headquarters in Bermuda and operations across regions including the Cayman Islands, Guernsey, and Jersey, provides a wide range of banking and wealth management services. The bank's forward-looking strategy includes not only share repurchases but also consistent dividend payouts. However, it acknowledges the challenges it faces, such as integrating acquisitions like Credit Suisse’s trust assets and fostering new business growth in light of global economic trends, interest rate volatility, and potential impacts from COVID-19 as disclosed in its Form 20-F filings.
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