Business
Trinidads’ First Citizens group acquires Butterfield Bank (Barbados)
First Citizens has signed an agreement to acquire Butterfield Bank Barbados Limited, a subsidiary of Bank of NT Butterfield and Son Limited.
The acquisition, pending regulatory approval, will cost First Citizens’ US$45 million “subject to normal adjustments”.
In a joint statement yesterday, the banks said the transaction will take approximately three months. They have therefore targeted early August as the period for the official transfer of Butterfield to First Citizens (Barbados).
The First Citizens acquisition represents the continuation of the group’s expansion throughout the region. The local banking group currently offers investment services in Barbados as well as St Vincent and St Lucia through its First Citizens Investment Services subsidiary and recently announced plans to open a representative office in Costa Rica.
First Citizens has assets of almost US$5 billion and equity of over US$800 million, providing a strong platform for the Barbados bank. The Bank of NT Butterfield and Son Limited is Bermuda’s first and largest independent bank. Butterfield Bank (Barbados) Limited provides retail, premium and business banking and lending services, merchant services and credit and debit card services in Barbados.
It employs 114 staff at its main office in Carlisle House in central Bridgetown and has five additional banking centers across the island.
The bank had assets of US$308 million and customer deposits of US$270 million at December 31, 2011.
Butterfield was established in 2003 upon the acquisition by Butterfield assets of the Mutual Bank of the Caribbean Inc., at the time a subsidiary of the Barbados Mutual Fund Life Assurance Society.
First Citizens Group Chief Executive Officer Larry Howai said the transaction confirms that First Citizens is well on course in terms of its strategic direction, particularly as it relates to acquisitions and regional expansion. “This is certainly a ‘win win’ situation for both organizations and what is most rewarding is the fact that the customer wins,” he said.