バターフィールド（NTB）2026年第3四半期決算説明会：NIM改善、CIBCカリビアン買収案件は順調

主要なポイント

• バターフィールドが発表した2026年第3四半期の純利益は6,100万ドル（1株当たり1.50ドル）でした。コア純利益は6,420万ドル（1株当たり1.58ドル）となりました。
• 純利息収入は前四半期比160万ドル増、前年同期比440万ドル増の9,720万ドルに増加しました。純利息マージンは前四半期比で2ベーシスポイント拡大し、2.76%となりました。
• 非利息収入は、カード取引高の増加、外国為替取引の活発化、および一時的な契約更新手数料に支えられ、6,480万ドルに増加しました。手数料ベースの収入は総収入の40%を占めました。
• 信託および法人清算に伴う預金約5億ドルが貸借対照表から流出する見込みであり、これにより預金残高は経営陣が以前試算した120億ドル〜125億ドルのレンジに向かう見通しです。
• 利息不計上貸出金は、主にチャンネル諸島および英国における住宅用不動産エクスポージャーの影響で、総貸出金の2.7%に相当する1億1,960万ドルに増加しました。経営陣は、融資枠の担保は十分に確保されており、信用損失は予想していないと説明しました。
• CIBCカリブ海事業の買収は予定通り進展しており、規制当局の承認やその他の取引条件を満たすことを前提に、2027年前半の完了を見込んでいます。

主要財務データ

事業および業績の動向

高利回り証券への再投資と財務ポートフォリオのリターン向上により、純利息収入が支援されました。これらのプラス効果は、貸出利回りの低下と資金調達コストの微増によって一部相殺されました。平均貸出残高はゆるやかに増加した一方、平均有価証券残高は概ね横ばいでした。

非利息収入は、バンキング手数料および外国為替収入の増加が寄与しました。バンキング収入には、カード取引の活発化と一時的な契約更新手数料の小幅な計上が反映され、外国為替収入は顧客取引高の増加に支えられました。

コア非利息費用は前四半期比で3.5%増加しました。この増加は、第2四半期の一部期間のみ計上されたR&H Guernsey買収に伴う費用が当四半期はフルに計上されたことや、従業員退職費用、その他の営業費用の増加を反映したものです。

バターフィールドの貸出ポートフォリオは、引き続きフルリコース型の住宅ローンが中心となっています。住宅ローンのうち78%はローン・トゥ・バリュー（LTV）比率が70%未満です。また、56億ドル規模の米国債および政府機関債ポートフォリオは、すべてAA以上の格付けを取得しています。

長期金利の上昇に伴い、売却可能証券（その他有価証券）ポートフォリオの含み損は第2四半期の1億670万ドルから1億8,730万ドルに拡大しました。繰上返済予想の鈍化と米国債イールドカーブのスティープ化により、ポートフォリオのデュレーションは4.9年に長期化しました。

経営陣のガイダンス

経営陣は、短期的には純利息マージンと純利息収入がほぼ横ばいで推移すると見込んでいます。預金コストのわずかな上昇に伴い、預金の流出は有価証券および短期資金のアセットリプライシングによって相殺される見通しです。経営陣は、金利上昇や2027年に向けたさらなるリプライシングの可能性により、中期的には上向きのバイアスを見込んでいます。

CIBCカリブ海事業の取引が完了するまで、四半期のコア非利息費用は9,300万ドルから9,500万ドルの範囲で推移する見込みです。経営陣は、ハリファックスへの拠点移転によるコスト削減効果は小さくなりつつあるものの、小規模な効率化の余地は引き続き存在すると説明しています。

インプライド・フォワードレートに基づき、経営陣は売却可能証券ポートフォリオに関するその他の包括利益累計額（AOCI）の損失が、12ヶ月で約21%、24ヶ月で約42%改善すると予想しています。

CIBCカリブ海事業の取引は2027年前半に完了する見込みです。規制当局への申請は提出済みで、統合チームが活動を開始しており、バターフィールドは買収資金を支えるための社債発行を準備しています。

プロフォーマ（試算）ベースで、統合後の銀行は総資産約290億ドル、預金残高約250億ドル、有形普通株主資本約17億ドル、年換算収益（ランレート）4億ドル以上を保有することになると経営陣は述べました。

リスクと注目点

四半期末から数週間以内に、プライベート・トラストおよび法人清算に伴う預金約5億ドルが流出する見込みです。経営陣はこの流出により貸借対照表の規模が縮小すると予想していますが、当面は38億ドルの現金および短期有価証券から充当されるとしています。

利息不計上貸出金の増加は、主にチャンネル諸島および英国における住宅用不動産エクスポージャーに起因しています。経営陣は、ロンドンのポートフォリオにおける流動性圧迫とマクロ経済の不透明感、ならびに英国の税制や規制の変更に関する不確実性を指摘しました。

本買収には複数の市場における規制当局の承認が必要です。バターフィールドはまた、バハマやバルバドスにおけるCIBCカリブ海事業の国債等エクスポージャーについて、市場性や現地政府へのコミットメントを含めて検証を進めています。

アナリスト質疑応答のハイライト

• 預金流出と純利息収入：経営陣は、5億ドルの預金流出が主に現金から充当されると予想しています。貸借対照表の規模縮小にもかかわらず、アセットリプライシングと金利上昇に伴い、足元の純利息収入は概ね横ばいに推移すると見込んでいます。
• CIBCカリブ海事業の貸借対照表戦略：バターフィールドは、取得予定の運用ポートフォリオ（主にデュレーションが比較的短い米国債で構成）の再検証を行っています。ポートフォリオ再編の決定は買収完了期日が近づいた時点で行われる予定です。
• 買収後の成長機会：経営陣は、中長期的にリテールバンキング、住宅ローン担保融資、担保付融資、および加盟店アクワイアリング事業を拡大する可能性を見込んでいます。また、慎重なアプローチを取りつつも、成長が著しい取得地域で市場シェアを獲得する余地があると考えています。
• 住宅ローン需要と英国エクスポージャー：経営陣は融資環境について競争的であると述べており、貸出金の広範な金利引き上げは想定していません。ロンドンの住宅ローンポートフォリオにおける流動性圧迫や不確実性については引き続き注視しています。
• 費用管理：バターフィールドは、取引による潜在的なシナジー効果を別途数値化しつつ、四半期のコア費用ランレート9,300万ドル〜9,500万ドルの達成に自信を示しています。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good morning. My name is Drew, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2026 Earnings Call for The Bank of N.T. Butterfield & Son Limited. [Operator Instructions] Please note this event is being recorded. I would now like to turn the call over to Noah Fields, Butterfield's Head of Investor Relations. Please go ahead.

Noah Fields

Thank you. Good morning, everyone, and thank you for joining us. Today, we will be reviewing Butterfield's third quarter 2026 financial results. On the call, I'm joined by Michael Collins, Butterfield's Chairman and Chief Executive Officer; Michael Schrum, President and Chief Financial Officer; and Bri Hidalgo, Chief Risk Officer. Following their prepared remarks, we will open the call up for a question-and-answer session. Yesterday afternoon, we issued a press release announcing our third quarter 2026 results.

The press release and financial statements, along with a slide presentation that we will refer to during our remarks on this call, are available on the Investor Relations section of our website at butterfieldgroup.com. Before I turn the call over to Michael Collins, I would like to remind everyone that today's discussions will refer to certain non-GAAP measures which we believe are important in evaluating the company's performance.

For a reconciliation of these measures to U.S. GAAP, please refer to the earnings press release and slide presentation. Today's call and associated materials may also contain certain forward-looking statements, which are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those contemplated by these statements. Additional information regarding these risks can be found in our SEC filings. I will now turn the call over to Michael Collins.

Michael Collins

Thank you, Noah, and thanks to everyone joining the call today. Our third quarter performance reflects the strength and resilience of Butterfield, the depth of our client relationships and the disciplined execution of our strategy, all of which position us well for continued long-term growth. Butterfield is a leading offshore bank and wealth manager with strong market positions in Bermuda and the Cayman Islands, complemented by a growing retail banking presence in the Channel Islands.

We also provide wealth management services to high-net-worth individuals, families and institutions through offices in the Bahamas, Switzerland, Singapore and the U.K. In the U.K., we originate residential mortgages for high-net-worth clients for properties in Prime Central London. I will now turn to highlights from the quarter on Page 6.

Third quarter results reflected continued strength across the franchise with net income of $61 million or $1.50 per share and core net income of $64.2 million or $1.58 per share. Profitability remained strong with a return on average common equity of 21.3% and core return on average tangible common equity of 25%. Net interest margin improved by 2 basis points to 2.76% despite a 2-basis point increase in deposit costs to 1.27%.

We also continued to return capital to shareholders through our quarterly cash dividend of $0.50 per share. Finally, we continue to make progress on the acquisition of CIBC Caribbean with closing expected in the first half of 2027. We will provide some additional details about the progress later in the call. I will now turn the call over to Michael Schrum for more details on the third quarter.

Michael Schrum

Thank you, Michael, and good morning. On Slide 7, we provide a summary of net interest income and net interest margin. In the third quarter, we reported net interest income before provision for credit losses of $97.2 million, an increase of $1.6 million from the prior quarter or an increase of $4.4 million from the third quarter in 2025. The net interest margin of 2.76% was 2 basis points higher than the prior quarter and 3 basis points higher than the third quarter of 2025.

Net interest income and margin benefited from continued reinvestment into higher-yielding securities and stronger treasury portfolio returns, although these gains were partly offset by lower loan yields and slightly higher funding costs. Balance sheet volumes remained stable during the quarter with average investment balances largely unchanged and average loan balances increasing modestly compared to the second quarter.

Slide 8 provides a summary of noninterest income, which continued to trend favorably, increasing $1.4 million to $64.8 million in the third quarter of 2026. Compared with the third quarter of 2025, noninterest income increased $3.6 million. The quarter's improvement was due primarily to higher banking revenues and stronger foreign exchange activity.

Banking revenues benefited from increased card transaction volumes as well as a modest nonrecurring contract fee renewal, while foreign exchange revenue reflected higher client volumes. Fee-based revenue represented 40% of total revenues during the quarter, comparing favorably to historical peer averages and highlighting the quality and stability of our overall earnings.

On Slide 9, we present core noninterest expenses. Core non-interest expenses increased 3.5% from the prior quarter, reflecting the full quarter of operating expenses from R&H Guernsey acquisition compared with the partial quarter in the second quarter. Excluding acquisition-related costs, expenses were also impacted by higher salaries and benefits, primarily due to staff departure costs as well as increased other operating expenses.

Our core efficiency ratio was 57.8%, remaining below our through-cycle target of 60% and highlighting our continued focus on expense management. We continue to expect quarterly core noninterest expenses to be in the range of $93 million to $95 million until we close the CIBC Caribbean transaction.

Slide 10 shows that Butterfield's balance sheet remains strong and highly liquid with total assets increasing to $14.3 billion from $14.1 billion at year-end 2025. Growth was driven primarily by higher deposit balances, while loan and investment balances remained relatively stable. Deposits increased to $12.9 billion and average deposits rose to $13.1 billion from $12.6 billion at the prior year-end, reflecting continued client confidence.

Deposits remained elevated at the quarter end, but we have received notice prior to quarter end that approximately $500 million worth of deposits would exit within weeks. This represents a handful of private trust and corporate liquidation fund deposits in a mix of demand and interest-bearing accounts. This would bring the deposit levels to our previously estimated range of $12 billion to $12.5 billion, where we expect for it to remain.

Loans ended the quarter at $4.4 billion and investments at $5.6 billion, both largely unchanged from the prior quarter, highlighting the stability of our balance sheet. We also maintain a conservative risk profile with risk-weighted assets representing just 27.3% of total assets, reflecting low risk density on our balance sheet.

On Slide 11, we show that Butterfield's asset quality remained acceptable in the third quarter of 2026, reflecting the continued strength of our conservative loan portfolio and high-quality investment holdings. Our $4.4 billion loan portfolio remains heavily weighted towards full recourse residential mortgages with 78% of those mortgages carrying loan-to-value ratios below 70%. This reflects the conservative underwriting standards and low risk profile of our loan book.

Our $5.6 billion U.S. Treasury and agency investment portfolio also maintained its exceptional credit quality with 100% of holdings rated AA or better, demonstrating the strength and liquidity of the investment portfolio.

Credit performance remained solid despite the increase in nonaccrual loans to $119.6 million or 2.7% of gross loans, up from 2.2% in the prior quarter, driven primarily by residential real estate exposures in the Channel Islands and U.K. segment. Importantly, these facilities remain well secured, and we do not expect any credit losses. The allowance for credit losses improved modestly to $27 million, representing 0.6% of total loans, while the net charge-off ratio was low at 0.02%.

On Slide 12, we present the average cash and securities balances with a summary of interest rate sensitivity. Our investment portfolio remained conservatively positioned during the quarter with duration increasing to 4.9 years, reflecting slower expected prepayments on fixed rate investments and a steeper U.S. treasury yield curve. Our balance sheet continues to be asset sensitive, although interest rate sensitivity has moderated from the prior quarter due to lower treasury interbank placements used to manage short-term deposit flows.

Our asset sensitivity continues to be above that of the U.S. peer group. As expected, the increase in longer-term interest rates resulted in higher unrealized losses within the available-for-sale portfolio, which increased to $187.3 million at the quarter end from $106.7 million in the second quarter. Based on current implied forward rates, we expect the unrealized losses within accumulated other comprehensive income related to the AFS portfolio to improve by approximately 21% over the next 12 months and 42% over the next 24 months.

Slide 13 summarizes regulatory and leverage capital levels. The Board of Directors has once again approved a quarterly dividend of $0.50 per share. TCE to TA continues to be conservatively above our targeted range of 6% to 6.5%. I will now turn the call over to Bri Hidalgo to provide an update on the CIBC Caribbean transaction. Bri?

Bri Hidalgo

Thank you, Michael. Turning to the acquisition of CIBC Caribbean. The transaction remains on track with regulatory approvals, financing activities and integration planning progressing as expected. During the quarter, we received shareholder approval for the acquisition and submitted the required regulatory applications. We have continued our engagement with employees, clients, governments and our regulators across our markets, including employee town halls and advancing stakeholder outreach efforts.

In parallel, dedicated integration teams have been established and are actively planning for a successful transition and realization of the strategic benefits of the transaction. We are also preparing for a debt issuance to support the acquisition. Overall, we remain on schedule for regulatory approvals and anticipate closing in the first half of 2027. I will now turn the call back to Michael Collins.

Michael Collins

Thank you, Bri. We remain enthusiastic and optimistic about the acquisition of CIBC Caribbean. We believe the combination will result in a stronger regional banking franchise with enhanced capabilities across corporate banking, personal banking and wealth management, creating the leading independent bank in the Atlantic and English-speaking Caribbean. Together, we will be better positioned to meet the evolving needs of our clients while delivering benefits to all stakeholders.

With approximately $29 billion in assets, $25 billion in deposits, $1.7 billion in tangible common equity and more than $400 million in run rate earnings on a pro forma basis, the combined bank will have the scale, financial strength and earnings power to compete effectively and drive sustainable earnings and growth. September marked 10 years since Butterfield's New York Stock Exchange listing.

And during that time, we have delivered a consistent record of performance, generating returns on equity of approximately 15% to 25% while growing profits and earnings per share. Over that period, we have demonstrated the durability of our business model across varying economic and interest rate environments. Our success has been built on a high-quality business model with fee income contributing approximately 40% of revenues and a disciplined approach to risk and expense management that has allowed us to generate strong returns without relying on elevated credit or investment risk.

Combined with thoughtful capital deployment, strategic acquisitions and significant shareholder returns through dividends and share repurchases, this has enabled us to create meaningful long-term value. We see the acquisition of CIBC Caribbean as the next step in that journey, enhancing our scale, capabilities and market position. We look forward to welcoming our new colleagues and clients to Butterfield. Thank you. And with that, we would be happy to take your questions. Operator?

Operator

[Operator Instructions] The first question comes from Tim Switzer with KBW.

質疑応答

Timothy Switzer

First one I have is just a little bit more of commentary on the NIM outlook. Can you maybe talk about what impact you've seen so far from rate hikes across U.S. and your other jurisdictions that are impacted? And then what your expectations would be on the impact going forward?

Michael Schrum

Yes. Tim, it's Michael Schrum. Yes, I mean, obviously, things are bouncing around a little bit with us finally landing on deposit levels that we've sort of foreshadowed over the last sort of year or so. And then obviously, NIM is pulling through broadly with somewhat of a lag at a 50% overall beta. So in the short term, we expect NIM to be relatively flat. So it will be deposit outflows offset by asset repricing effectively in the investment and the short-term cash bucket and some modest uptick in cost of deposits.

So generally speaking, on a core basis, we would expect NIM to be flat in the short term with a sort of modest tailwind into the next year coming from the previously announced Fed rate increases and then possibly depending on what happens with some further upward adjustment. So good news overall, there's a bit of fluctuation in deposit levels. But I think broadly speaking, loans have been flat. And obviously, we've sort of held on the repricing of Bermuda base rate affecting mortgage holders for the last hike. And so that would probably give us some further opportunities into '27.

Timothy Switzer

Got it. That was very helpful. And you touched on this, but can you help us get an idea of the NII impact of the deposits that are moving off balance sheet? Like if I -- it sounds like the NIM is staying flat with the move. Do I just take, say, $400-plus million of deposits and use your normalized NIM, that's $11 million or so annually?

Michael Schrum

Yes. I mean it's -- we expect NII again to be relatively flat. Obviously, there's a little bit of seasonality on the balance sheet as well. So typically, Cayman deposits, we get more inflows in the fourth quarter. So seasonal variations obviously can impact a little bit. But I think, generally speaking, we should expect NII to be flat in the short term with a positive bias in the medium term. So exactly as you said, there's multiple moving parts there, but it should be a net positive that rates are going up over time.

Operator

The next question comes from Evan Kwiatkowski with Raymond James.

Evan Kwiatkowski

I just wanted to touch on the deal first. Could you update us on any intention to pursue balance sheet optimization opportunities with the deal, whether it be repositioning anything on the loans for securities side? And then just curious if there's any businesses or portfolios on the CIBC Caribbean side, you're looking to grow further or conversely run off?

Michael Schrum

Yes. Maybe I'll just kick off just on the optimization. Obviously, the CIBC Caribbean entities still report to CIBC in Toronto. And so we started to take a look at, obviously, their investment portfolios and had some good conversations around liquidity contingency and starting to sort of talk about what types of investments they have. I mean most of that is going to be U.S. treasuries relatively short duration. So not as big of a rate impact on the fair market valuation of that.

They do have some sovereign securities in both Bahamas and Barbados that we're taking a look at in terms of either marketability or commitments that we've made to those governments. And so there will probably be some further work we'll do before closing to just familiarize ourselves. And I think at closing, we'll obviously take a look and see if we need to restructure a little bit.

As you know, moving to our model is mainly -- we don't have any credit risk in the investment portfolio. So we want to kind of make sure we're not doubling down on sovereign risk as well, but obviously subject to sensitivities in those individual jurisdictions. So I think good conversations so far, nothing really untoward in there and some liquidity in some securities, but good to see that it's mainly U.S. treasury based.

Michael Collins

Yes. And I think we're very happy with the footprint. So each of these jurisdictions have very sticky deposits. They have a lot of similarities, but they are very different, which gives us great diversification across the deposit base. We've got all of our regulatory applications in.

We've gotten a very warm welcome from all the governments and central banks, spent a lot of time down there and spent a lot of time with our new CIBC Caribbean colleagues. It's a great cultural fit, really good rapport. And it's a really, really good bank. I mean it's really well run and great systems, great people. So we're very excited about it. But currently, we're very happy with the entire footprint.

Bri Hidalgo

Yes. And recall, we previously mentioned the extensive due diligence that we performed on both the investment portfolio and credit book. And it's a well-performing book. It largely aligns with our underwriting standards and risk expectations.

Michael Schrum

I think -- yes, I mean, if you look over the sort of longer term, we are sort of more of a retail bank than more of a corporate bank. And so we're sort of seeing what are the opportunities in the retail space, whether it's residential mortgage-backed lending, collateral-backed lending and then obviously, trying to see if there's any other additional things that maybe we could pick up such as merchant acquiring and noncompetitive services as well. So pretty positive overall, but this would sort of be a transition over the medium to longer term.

Evan Kwiatkowski

That's really helpful. And then maybe just switching to the loan side. It seemed like mortgage was pretty stable quarter-over-quarter. I'm just curious how you think about growth in the single-family resi portfolio in general against a higher rate backdrop and whether you expect any significant changes in demand if we get further rate hikes?

Michael Schrum

Yes. I mean, obviously, that sort of is the intent of the rate hikes we're reviewing. We don't really see any credit pressures, maybe with the exception a little bit in our London book, but those nonperformers are really coming through liquidity pressures in that book and uncertainty about the macroeconomic environment. You probably saw the U.K. budget was announced this morning.

No surprises there from a housing perspective, but there are some longer-term uncertainty in that market surrounding the regulatory changes that they've made to -- particularly to resident non-dom regime and some of the tax changes they've made some additional friction costs in the form of stamp duty, et cetera. So stability is better, obviously, for that book. I think people are sort of nervous when there's new prime ministers coming in with a greater degree of frequency.

But we're seeing some good traction in terms of obviously other areas that kind of facing uncertainty primarily in the Middle East. So we're seeing people coming back and maybe renting into Central London. So that's sort of supporting some of the liquidity aspects. But we've done a pretty detailed look at the London book, and I think we're pretty happy with that being temporary, but the question is how long is temporary? It's been going on for a little bit.

Evan Kwiatkowski

Got it. And then if I could sneak one more in. If I could round it off on the expense side. Just curious if this high $90 million per quarter range is a reasonable core run rate. I know you've mentioned before some opportunities for expense savings, relocating people to Halifax. Just curious if you still see that as an opportunity or if there's anything else you're looking at in terms of optimizing the expense base.

Michael Schrum

Yes, good question. Obviously, expenses were a little high this quarter, a number of sort of non-recurring things impacting that. So we still believe -- are confident that we can get to $93 million to $95 million. That should be the run rate going forward. I think we've kind of gotten to the less meaningful impact of the Halifax move. We almost have 300 people up there, and we want to retain client faces in our jurisdictions.

So we're kind of looking at the 2s and 3s as opposed to the 10s and 20s. But I think there's still more opportunity in that space. And then we're kind of being also focusing on quantifying the synergies from the deal as they come through. So I think we're sort of thinking, there are some more opportunities, but we're kind of pausing a little bit on that on the BAU side, but still kind of confident that we'll get into that range in the short term.

Operator

The next question comes from Robert Rutschow with Wells Fargo.

Robert Rutschow

Just a housekeeping question on the deposit outflow, I assume most of that will come out of cash? Or do you expect to sort of maintain the size of the balance sheet? And then I was wondering if you could give a little bit more color on the decline in loan yields overall and whether that should bounce back going forward.

Michael Schrum

Yes. Maybe I'll kick off. Certainly, yes, you're right. The balance sheet will be smaller by $0.5 billion. We have a lot of -- $3.8 billion cash and short-term securities. So not really affecting our liquidity position. These were expected outflows and sort of treated as contractual funding, if you will from all of our -- in all of our regulatory submissions. And certainly, our models have already factored that in as at last quarter end.

It was a mixture of liquidation money, and I think we've talked about this before. It's a long-standing fund that was going into voluntary liquidation. The fund was sitting on our balance sheet. We knew it was coming out. So the balance sheet will be smaller by -- will come into a deposit range of $12 billion to $12.5 billion. And I think that's kind of what we said previously. And yes, that will come out of cash in the first instance, so obviously affecting the size of the returns in the NII.

But then behind that is obviously a rising interest rate environment. So that's kind of helpful in that regard. In terms of loan yields, and I think we have this in an appendix, we've seen mainly the ARMs that we have in our book resetting to floating at this point. And so while -- and we've sort of lagged the repricing of the Fed rate increase, particularly in Bermuda.

And as you know, the U.K. BOE rate has recently moved. So we're expecting some repricing there. But generally speaking, I think that loans are stable. It's competitive environment. So I'm not expecting sort of loans to reprice upwards at this point, although the fixed to floating piece is definitely the remixing piece that's impacting the loan yield effectively.

Robert Rutschow

Okay. That's helpful. And then just a question on the deal. I guess some of the acquired islands that you're going into appear to have a little bit faster GDP growth. When you're thinking about synergies with the deal, anything you might do to sort of lean into better growth in those new markets?

Michael Collins

Yes. I mean, as I said, they're all very different jurisdictions, but all recovering from COVID quite well. So Barbados, the IMF came in, they got their debt to GDP way down, growing quite well in Bahamas as well.

Michael Schrum

Yes. So I think -- I mean the thing to look at there is, obviously, we have challenges in our growth trajectories with the islands where we have large market share. So in Bermuda and Cayman, in particular, we have really, really nice market share. Some of these new islands, we have a lower market share.

And when you look at the business mix between the retail and corporate book and particularly lending and deposits, I think there's a real opportunity there to grow some of that in line with GDP, which is, as you said, growing faster than some of the other small islands, but take a little bit of market share as well as part of that and then maybe over time, sort of moderate some of their corporate lending. But again, this will be sort of a long-term project. We're not thinking a big push in retail. We're sort of thinking take our market share initially and just focus a little bit more on that.

Michael Collins

Yes. And I think Barbados, Bahamas, certainly Cayman, Barbados, Bahamas and Turks and Caicos are strong market shares. All the other islands do quite well. So it adds up quite well. I think going forward, we're going to focus a lot on Cayman, Barbados, and there are different economies. So Barbados is tourist economy, but also a big domestic economy, a large population. And if you've been in the Bahamas recently, it's in terms of wealth management and properties and real estate, it's incredibly good at this point.

So everything seems to be growing quite well. The whole region is kind of coming back from COVID. Tourism is up. So we're pretty excited about the opportunities. But yes, we're not projecting a lot of cost synergies. Our focus is to support the governments and communities. There are unions as well. And so we're making commitments to support everyone across the board, and it will be very lucrative over time, but we're going to take our time.

Operator

That concludes our question-and-answer session. I would like to turn the call back to Noah Fields for closing remarks.

Noah Fields

Thank you, Drew, and thanks to everyone for dialing in today. We look forward to speaking with you again next quarter, and have a great day.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.