• First quarter core earnings of $15.3 million, up $0.7 million
• Net income of $13.3 million after non-core items totalling $2.0 million
• Board declares first interim dividend of $0.01 per Common Share
• Strong capital position with a total capital ratio of  24.1%
• Core earnings of $15.3 million, up 5.0%
• Net interest margin at 2.47%, down from 2.60%
• Total non-interest expenses improved by $5.0 million, 7.3%
• Core cash return on tangible common equity of 7.41%
• Core efficiency ratio of 75.23%, improved from 79.74%
• Total interest income fell $1.9 million to $60.2 million as a result of a $3.8 million decrease in loan revenue largely due to the repayment of a $240 million Government loan in the prior year, offset by $1.9 million higher revenues from investments from a $0.5 billion increase in average investment balances.  The average yield on loans and investments in Q1 2013 was 4.63% and 2.04% respectively (Q1 2012: 4.74% and 2.12% respectively);
• Total interest expense declined by $0.9 million primarily from lower interest expense on total deposits.  The average cost of funds in Q1 2013 fell by 6 basis points from 0.36% in Q1 2012 to 0.30% in Q1 2013 on average interest bearing deposits of $6.6 billion;
• The decrease in net interest income was driven by a 13 basis point decrease in the net interest margin, from 2.60% in Q1 2012 to 2.47% in Q1 2013 mainly attributable to lower average loan balances in Q1 2013 that earned higher yields than can be earned on investments as well as falling interest rates.
• Average interest earning assets were $8.6 billion in Q1 2013, up $0.4 billion, driven by an increase in average customer and total deposits.
• Asset management revenue decreased by $1.7 million from $6.2 million in Q1 2012 to $4.5 million in Q1 2013 primarily from falling USD Libor rates which impacts fees earned on the Butterfield Money Market fund (“BMMF”), net redemptions from the BMMF, and the termination of an investment management agreement subsequent to Q1 2012;
• Banking services revenue of $7.2 million was down $0.6 million from $7.8 million a year ago, primarily as a result of loan prepayment penalty fees received during Q1 2012 in excess of the current quarter;
• Foreign exchange revenue of $7.1 million for the quarter was up $0.4 million compared to Q1 2012, driven by a rebound in customer transaction volumes.
• Net salaries and employee benefits decreased by $1.8 million year on year to $33.2 million in Q1 2013. Excluding the $2.0 million of early retirement and redundancy payments in Q1 2013, salary and employee benefits were $31.2 million in Q1 2013, down $3.8 million compared to the $35.0 million in Q1 2012.  The reduction was mainly driven by headcount reductions of 76 year on year, resulting in $2.5 million in lower salary, overtime and temporary employee costs, a reduction of $1.1 million in staff incentive expense, and a $0.5 million reduction in staff recruitment and employment services costs.  This was offset by a $0.3 million net increase in other staff benefits mainly attributable to increasing medical expenses, despite lower headcount. Headcount at the end of Q1 2013 was 1,154, compared to 1,230 a year ago on a full-time equivalency basis;
• Technology and communications expenses decreased by $1.0 million to $13.3 million from expense control measures and lower deprecation expense;
• Property costs declined by $0.6 million from $6.5 million in Q1 2012 to $5.8 million in Q1 2013, primarily due to lower depreciation expense due to the writedown of certain properties in the prior year;
• Professional and outside services expenses decreased by $1.0 million from the reduction in the use of consultants and other professional services;

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