Butterfield Reaches Resolution With US Department of Justice

Rhea-AI Summary

The Bank of N.T. Butterfield & Son Limited (NYSE: NTB) announced a resolution with the U.S. Department of Justice regarding its legacy business with U.S. clients. The agreement, a three-year non-prosecution agreement (NPA), includes financial payments totaling $5.6 million for forfeiture and tax restitution. These payments align with provisions set in Butterfield's financial statements from 2015 and 2016. CEO Michael Collins expressed satisfaction with the resolution and noted improved compliance controls for U.S. client business.

Positive

• Resolved inquiry with the U.S. Department of Justice, reducing legal uncertainties.
• The $5.6 million payment was already provisioned in prior financial statements, indicating no unexpected financial burden.

Negative

• None.

The Bank of N.T. Butterfield & Son Limited (“Butterfield”) (NYSE: NTB | BSX: NTB.BH) today announced that it has reached a resolution with the United States Department of Justice concerning the inquiry into Butterfield’s legacy business with US clients reported in November 2013.

The resolution is in the form of a non-prosecution agreement ("NPA") with a three-year term. The financial payments totaling $5.6 million in respect of Forfeiture and Tax Restitution Amounts are in line with the existing provision included in Butterfield’s financial statements as recorded in 2015 and 2016.

Michael Collins, Chairman and Chief Executive Officer of Butterfield, said, “We are pleased to resolve this matter which dates back to late 2013. Since that time, we have enhanced our compliance controls for business with US clients and the total payment has been provisioned. Moving forward, we remain focused on delivering for our clients and our stakeholders.”

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: www.butterfieldgroup.com.

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FAQ

What was the resolution between Butterfield and the U.S. Department of Justice?

Butterfield reached a non-prosecution agreement (NPA) with the U.S. Department of Justice regarding its legacy business with U.S. clients.

How much is Butterfield paying as part of its agreement with the DOJ?

Butterfield is making financial payments totaling $5.6 million for forfeiture and tax restitution.

What is the duration of the non-prosecution agreement with the DOJ?

The non-prosecution agreement is effective for three years.

What past financial provisions relate to the DOJ settlement?

The $5.6 million payment aligns with provisions included in Butterfield's financial statements from 2015 and 2016.

Who is the CEO of Butterfield and what did he say about the resolution?

Michael Collins, the CEO, expressed satisfaction with resolving the matter and emphasized enhanced compliance controls for U.S. clients.