Butterfield Bank
Encyclopedia
Butterfield, officially The Bank of N. T. Butterfield & Son Limited, is a bank
founded and based in Bermuda
. In addition to Bermuda, it operates in the Bahamas, Barbados
, the Cayman Islands
, Guernsey
, Switzerland
and the United Kingdom
, providing private banking, wealth management
and trust fund services. It is listed on the Bermuda Stock Exchange
(BSX) and the Cayman Islands Stock Exchange
(CSX).
Global Finance magazine
has consistently listed the Bank as one of the world's best developed market banks.
in 1904.
In 1941, during World War II
, the bank opened a branch in St. George's, Bermuda
to service military personnel. Following the war the bank experienced rapid growth, increasing its number of shareholders by 42% and thus becoming the largest Bermuda company in terms of shareholders. During the 1960s, the bank opened branches in the United Kingdom
and the Cayman Islands
and formed new companies to handle mortgages and trusts
, followed by its third Bermuda branch, in Somerset, Bermuda, in 1970. During the 1980s the bank took over the Bermuda National Bank, expanded its overseas business and introduced automated teller machine
s (ATMs) into Bermuda. In recent years, Butterfield has expanded into Barbados
and taken over City of London
merchant bank Leopold Joseph
, This purchase also included Leopold Joseph Guernsey Limited.
In 2008, Butterfield Bank held a 51% market share of deposits in Bermuda, followed by the Bank of Bermuda HSBC at 41%.
In March 2010, Butterfield Group posted a $213M loss, and announced that CIBC, the Carlyle Group and other institutional investors had collectively purchased a majority stake in the bank through a capital injection of $550 million USD.
It was also announced at the same time that CEO & President Alan Thompson had stepped down from leadership of the company, with CFO Brad Kopp now assuming control of the company. The economic conditions present throughout 2009/2010, along with the ongoing attempt to outsource all IT operations to a Canadian data centre (and the challenges and significant expenses in doing so) have further challenged the bank, with shares dropping to a low of $1.20.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
founded and based in Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
. In addition to Bermuda, it operates in the Bahamas, Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
, the Cayman Islands
Cayman Islands
The Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
, Guernsey
Guernsey
Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, providing private banking, wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
and trust fund services. It is listed on the Bermuda Stock Exchange
Bermuda Stock Exchange
The Bermuda Stock Exchange , established in 1971, is currently the world’s leading fully electronic offshore securities market. The 2010 BSX 'Year End Review' report stated that the exchange's aggregate market capitalization stood at $USD319 billion.A breakdown of the securities listed on the BSX...
(BSX) and the Cayman Islands Stock Exchange
Cayman Islands Stock Exchange
The Cayman Islands Stock Exchange is a stock exchange based in Grand Cayman, Cayman Islands. It started operations in July 1997 and is fully owned by the Cayman Islands government. The CSX was recognized by the London Stock Exchange as an approved organization in July 1999.Over 1,000 stocks,...
(CSX).
Global Finance magazine
Global Finance (magazine)
Global Finance is an English-language monthly financial magazine.Joseph D. Giarraputo, the founder and former publisher of Venture, the magazine for entrepreneurs, in 1987 joined forces with Carl G. Burgen, Stephan Spahn, H. Allen Fernald, and Paolo Panerai to start a magazine on financial...
has consistently listed the Bank as one of the world's best developed market banks.
History
It grew out of a Bermuda trading company founded by Nathaniel Butterfield in 1758; Butterfield's son, Nathaniel T., expanded the business to include financial services. In 1858 the Bank of N. T. Butterfield & Son was founded as Bermuda's first bank. Nathaniel T. was succeeded by his son Nathaniel A. as head of the bank, which was incorporated by an Act of ParliamentAct of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
in 1904.
In 1941, during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the bank opened a branch in St. George's, Bermuda
St. George's, Bermuda
St. George's , located on the island and within the parish of the same names, was the first permanent settlement on the islands of Bermuda, and is often described as the third successful English settlement in the Americas, after St. John's, Newfoundland, and Jamestown, Virginia. However, St...
to service military personnel. Following the war the bank experienced rapid growth, increasing its number of shareholders by 42% and thus becoming the largest Bermuda company in terms of shareholders. During the 1960s, the bank opened branches in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and the Cayman Islands
Cayman Islands
The Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
and formed new companies to handle mortgages and trusts
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
, followed by its third Bermuda branch, in Somerset, Bermuda, in 1970. During the 1980s the bank took over the Bermuda National Bank, expanded its overseas business and introduced automated teller machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s (ATMs) into Bermuda. In recent years, Butterfield has expanded into Barbados
Barbados
Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...
and taken over City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
merchant bank Leopold Joseph
Leopold Joseph
Leopold Joseph may refer to:*Leopold, Duke of Lorraine *Archduke Leopold Joseph of Austria *Archduke Leopold Joseph of Austria *Leopold Joseph, a British merchant bank acquired by Butterfield Bank...
, This purchase also included Leopold Joseph Guernsey Limited.
In 2008, Butterfield Bank held a 51% market share of deposits in Bermuda, followed by the Bank of Bermuda HSBC at 41%.
In March 2010, Butterfield Group posted a $213M loss, and announced that CIBC, the Carlyle Group and other institutional investors had collectively purchased a majority stake in the bank through a capital injection of $550 million USD.
It was also announced at the same time that CEO & President Alan Thompson had stepped down from leadership of the company, with CFO Brad Kopp now assuming control of the company. The economic conditions present throughout 2009/2010, along with the ongoing attempt to outsource all IT operations to a Canadian data centre (and the challenges and significant expenses in doing so) have further challenged the bank, with shares dropping to a low of $1.20.