The Bank of NT Butterfield & Son has completed the $45 million sale of its wholly-owned Barbados subsidiary, Butterfield Bank (Barbados), to Trinidad and Tobago-based First Citizens Bank.

The deal was announced in May this year and the parties got final regulatory approval on August 16, Butterfield said in a statement today.

Under the terms of the deal, Butterfield received gross proceeds of $45 million for the sale of the business, which it said will generate a gain of approximately $7 million before normal adjustments. Details regarding the net gain from the transaction will be disclosed in Butterfield’s third quarter 2012 financial results.

Butterfield Bank (Barbados) was created in 2003 upon the acquisition by Butterfield of the Barbados assets of the Mutual Bank of the Caribbean, which at the time was a subsidiary of The Barbados Mutual Life Assurance Society. It had assets of B$617 million (around $308 million) and customer deposits of B$540 million at December 31, 2011.

First Citizens’ acquisition is the first acquisitive expansion of its full service banking business outside of its home market of Trinidad and Tobago, the statement said.