Butterfield Bank says it has spent nearly US$17 million on fees and other expenses related to its proposed acquisition of CIBC Caribbean, as the company moves closer to completing the major regional banking deal.
In its second-quarter results, released on July 27, Butterfield reported US$16.9 million in non-core deal-related expenses, mainly associated with the planned purchase of CIBC Caribbean.
The deal involves Butterfield purchasing CIBC's 91.7 per cent stake in CIBC Caribbean.
The acquisition, valued at US$1.794 billion, would create one of the Caribbean's largest regional banks, with combined assets of approximately US$29 billion.
Butterfield has also paused its share buyback programme as it seeks to preserve capital and support financing for the transaction.
During an earnings call, Butterfield's management said the acquisition remains on schedule for completion in the first half of 2027.
The transaction still requires approval from Butterfield shareholders at a special meeting, expected in mid-September, along with regulatory approval in the jurisdictions where CIBC Caribbean operates.
Butterfield says its core net income, excluding one-off costs such as acquisition expenses, increased by 19 per cent to US$63.9 million in the second quarter.
Butterfield Bank, headquartered in Bermuda, was founded in 1858.
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