FCB buys Barbadian bank for $289M

Trinidad & Tobago's First Citizens Bank announced on Monday that it has signed an agreement to buy the Barbados subsidiary of the Bank of Butterfield for US$45 million ($289 million).

The acquisition is pending regulatory approval and is expected to be completed during the third quarter of 2012.

In an official statement the State-owned bank said 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 five additional banking centres across the island. Its assets are valued at US$308 million with customer deposits of US$270 million at 31 December 2011.

FCB said Butterfield Bank (Barbados) Limited was established in 2003 following the acquisition by Butterfield of the Barbados assets of the Mutual Bank of the Caribbean, Inc., which was at that time a subsidiary of The Barbados Mutual Life Assurance Society.

The bank said the acquisition represents the continuation its expansion throughout the region and for the first time it will have access to to retail customers outside of T&T.

Larry Howait, FCB CEO

Larry Howai, the Group Chief Executive Officer at First Citizens said: “This 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 organisations and what is most rewarding is the fact that the customer wins.

"I must emphasise that our commitment to put customers first has been replicated in Barbados through our Investment Services Company and will be extended to more communities thanks to Butterfield Bank (Barbados).”

Bradford Kopp, Butterfield’s president and CEO, said: “In First Citizens, Butterfield has found the ideal buyer for our Barbados operations: a full service bank with a strong reputation for service and innovation, which has a well-established, complementary business on the island.

"Our employees, customers and premises in Barbados are a good fit with First Citizens’ business model, and we are confident that all stakeholders will benefit from this transaction."