Bermuda's oldest and second-largest bank has completed the sale of its wholly owned subsidiary, Butterfield Bank Barbados Limited, to First Citizens Bank.
Bank of Butterfield announced in May that it had reached an agreement for the sale of its Barbados business to First Citizens, pending regulatory approval.
Butterfield received gross proceeds of US$45 million for the sale of the business to Trinidad-based First Citizens, which will generate a gain of around US$7 million, officials said.
Details regarding the net gain from the transaction will be disclosed in Butterfield's third-quarter 2012 financial results.
"We are pleased that we received all regulatory approvals and were able to conclude the sale of our Barbados business to First Citizens in the third quarter as planned," said Bradford Kopp, Butterfield's president and chief executive officer.
"With this transaction completed, Butterfield's management team continues to focus on strengthening our core businesses - community banking in Bermuda and Cayman, and international wealth management services - to restore shareholder value.
"We have worked closely with the First Citizens team to enable a seamless transition of services for our former customers in Barbados, and we are confident that they will continue to be well served," he added.
excited by opportunities
Larry Nath, First Citizens Ag Group chief executive officer, said that the bank is "very excited about the opportunities that lie ahead for us.
"We thank the leadership of Butterfield Bank (Barbados) for working with us to ensure a seamless transition. We are confident that we have an incredible group of people with unmatched experience in both organisations who will support our aim to remain one of the safest, soundest and most stable banks in the region."
The Barbados subsidiary was established in 2003 upon the acquisition by Butterfield of the Barbados assets of the Mutual Bank of the Caribbean Inc, at the time a subsidiary of the Barbados Mutual Life Assurance Society.
It had assets of BDS$617 million (US$308 million) and customer deposits of BDS$540 million (US$270 million) at December 31, 2011.
First Citizens' acquisition of Butterfield Barbados represents the first acquisitive expansion outside of its home market of Trinidad and Tobago.