Butterfield Bank posted net income of $49.7 million for the second quarter — up from $44.2 million in the first quarter and $36.1 million in the same period in 2017.

One of the main drivers of the increase was $7.5 million increase in net interest income, compared to the first three months of the year, partly from higher interest earned on loans and investments.

This year’s acquisition of Deutsche Bank’s Global Trust Solutions business added to trust revenue and was the main driver of a $2.2 million increase in non-interest income.

The results were announced after the bank celebrated its 160th anniversary at the New York Stock Exchange, where Michael Collins, the bank’s chairman and chief executive officer, rang the closing bell, while joined by members of the board of directors.

Butterfield said core net income was $51.7 million, or 93 cents per share, compared to $37.5 million, or 67 cents per share, for the second quarter of 2017.

The bank added that its salary and employee benefit expenses rose $3.9 million from the first quarter of the year, due to the addition of new teams to service the expanded trust business, as well as annual compensation review increases.

Mr Collins said: “The bank continues to benefit from its well positioned balance sheet, capital efficient non-interest income and strategic asset deployment through its loan and investment portfolios. “The Deutsche Bank trust and banking acquisitions are progressing nicely and add to our track record of executing well on acquisitions and managing operational risks.

“The costs related to the integration and closing of the Deutsche Bank deals have developed as we expected. I remain confident in our ability to maximise shareholder value through our businesses in core geographies, while continuing to seek out accretive acquisitions in the trust and banking segments.

“I am particularly pleased that we reported a core cost to income ratio of 59 per cent this quarter, which is now in line with our longer-term expectations for the Bank. This underlines our commitment to a strong focus on cost discipline as the Bank continues to grow and achieve its full potential.”

Average customer deposit balances of $10.1 billion were elevated during much of the second quarter due to an inflow of transitory customer deposits.

These deposits started to decrease towards the end of the quarter as period end deposit balances returned to more normal levels at $9.7 billion as at June 30, and contributed to the large sequential net interest income increase.

Results for the second quarter of 2018 included a release of provision for credit losses of $0.5 million compared with a release for credit losses of $1.9 million in the previous quarter.

The return on average assets for the second quarter of 2018 was 1.8 per cent, up from 1.6 per cent in the previous quarter and 1.3 per cent in the second quarter of 2017.

Net interest income for the second quarter of 2018 was $87.9 million, up from $81.8 million in the previous quarter.

Non-interest income was $41.9 million for the second quarter, compared with $39.8 million in the previous quarter.

Butterfield’s board declared an interim dividend of 38 cents per share to be paid on August 17, 2018 to shareholders of record on August 6, 2018.

The bank did not repurchase any of its own shares under the board’s existing one million share buyback authorisation.