Bank of NT Butterfield & Son (NTB) AI Stock Analysis

• Market Cap: $1.90B
• Dividend Yield: 4.33%
• Average Volume (3M): 223.73K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.76
• Revenue Growth: -0.09%
• EPS Growth: 18.47%
• Country: US
• Employees: 1,295
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.46
• Shares Outstanding: 41,203,102
• 10 Day Avg. Volume: 312,002
• 30 Day Avg. Volume: 223,732
• PEG Ratio: 1.95
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 6.75
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: $51.00
• Price Target Upside: 10.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.23
• Revenue Forecast (FY): $594.05M

• Rating: 82 Outperform
• Price Target: $51.00 ▲(10.56% Upside)

Bank of NT Butterfield & Son's stock is rated highly due to its strong financial performance, attractive valuation, and positive earnings call sentiment. The company's robust profitability, efficient cash flow management, and conservative leverage provide a solid foundation. The low P/E ratio and high dividend yield further enhance its attractiveness. While technical analysis shows some bearish momentum, the overall outlook remains positive.

Positive Factors

Strong Financial Performance

Strong financial performance with high net income and core earnings per share indicates robust profitability and operational efficiency, supporting long-term growth.

Cash Flow Management

Efficient cash flow management ensures the company can sustain operations, invest in growth opportunities, and return value to shareholders through dividends and buybacks.

Leadership Changes

Strategic leadership changes enhance risk management and corporate strategy, ensuring stability and continuity in operations, crucial for long-term success.

Negative Factors

Unrealized Losses in Investment Portfolio

Significant unrealized losses in the investment portfolio could impact future earnings and capital adequacy, posing a risk to financial stability.

Decrease in Average Loan Balances

A decrease in average loan balances may indicate challenges in loan origination and demand, potentially affecting future interest income and growth prospects.

Revenue Growth Decline

A decline in revenue growth can signal weakening market position or competitive pressures, impacting long-term profitability and market share.

Bank of NT Butterfield & Son Business Overview & Revenue Model

Company Description

Bank of NT Butterfield & Son (NTB) is a leading offshore bank and financial services provider headquartered in Hamilton, Bermuda. Founded in 1858, the bank operates primarily in the sectors of personal banking, corporate banking, and wealth management. NTB offers a range of core products and services including retail banking, private banking, investment management, and fiduciary services, catering to both individual and institutional clients across Bermuda, the Caribbean, and the Guernsey and Jersey markets.

How the Company Makes Money

The Bank of NT Butterfield & Son generates revenue through several key streams. Primarily, the company earns interest income from loans and advances issued to clients, as well as from its investment portfolio. Additionally, NTB generates fee-based income from various services such as wealth management, investment advisory, and transaction fees associated with banking services. The bank also benefits from its trust and fiduciary services, which provide ongoing fees for managing assets and estates. Strategic partnerships and collaborations with other financial institutions and service providers further enhance NTB's offerings and revenue potential, while its operational efficiency and focus on high-net-worth individuals contribute to a stable and profitable business model.

Bank of NT Butterfield & Son Financial Statement Overview

Summary

Bank of NT Butterfield & Son shows strong financial health across all key financial statement aspects. The company exhibits robust profitability, efficient cash flow management, and conservative leverage, supported by consistent revenue growth. While the equity ratio is on the lower side, the overall financial position remains solid, providing a strong foundation for future growth and stability.

Income Statement

The income statement reflects strong profitability with a TTM gross profit margin of 76.6% and a net profit margin of 33.4%. Revenue growth is positive at 11.5% over the past year, indicating a robust upward trajectory. The EBIT and EBITDA margins are solid at 41.9% and 31.8%, respectively, showcasing operational efficiency. Overall, the company demonstrates strong revenue growth and profitability, though the slight dip in net income compared to the previous year suggests potential areas for improvement.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The return on equity is high at 20.5%, reflecting effective use of shareholder funds. The equity ratio stands at 7.5%, suggesting a modest level of equity relative to total assets, typical for the banking industry. While the financial leverage is manageable, the lower equity ratio could be a potential risk if asset quality deteriorates.

Cash Flow

Cash flow metrics reveal a strong position with a TTM free cash flow growth rate of 12.0%. The operating cash flow to net income ratio is healthy at 1.38, indicating robust cash generation relative to reported profits. Additionally, the free cash flow to net income ratio of 1.26 suggests efficient conversion of earnings to cash flow. Overall, the company's cash generation and growth are strong, supporting its operational and financial activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	754.33M	816.50M	578.60M	551.70M	496.50M	502.70M
Gross Profit	436.79M	580.32M	404.60M	551.70M	496.50M	502.70M
EBITDA	250.99M	263.00M	262.47M	257.88M	235.25M	0.00
Net Income	219.41M	216.30M	225.49M	214.02M	162.67M	147.22M
Balance Sheet
Total Assets	14.19B	14.23B	13.37B	14.31B	15.34B	14.74B
Cash, Cash Equivalents and Short-Term Investments	4.80B	4.67B	2.29B	2.98B	3.38B	4.11B
Total Debt	38.24M	226.89M	98.49M	172.00M	172.00M	171.00M
Total Liabilities	13.12B	13.21B	12.37B	13.44B	14.36B	13.76B
Stockholders Equity	1.07B	1.02B	1.00B	865.00M	977.00M	982.00M
Cash Flow
Free Cash Flow	283.57M	243.90M	246.02M	192.40M	235.63M	167.58M
Operating Cash Flow	312.73M	265.43M	300.29M	219.27M	251.35M	188.15M
Investing Cash Flow	-897.13M	-581.02M	681.80M	292.02M	-1.91B	-41.71M
Financing Cash Flow	-343.20M	735.56M	-1.45B	-506.81M	535.78M	546.45M

Bank of NT Butterfield & Son Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTB, the sentiment is Positive. The current price of 46.13 is above the 20-day moving average (MA) of 43.09, above the 50-day MA of 43.75, and above the 200-day MA of 41.35, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 91.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTB.

Bank of NT Butterfield & Son Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	82 Outperform	$1.90B	8.53	20.99%	4.33%	-0.09%	18.47%
EWBC	81 Outperform	$13.78B	11.03	15.54%	2.38%	4.18%	14.61%
NWG	78 Outperform	$61.13B	8.83	14.58%	4.16%	7.43%	30.31%
NU	77 Outperform	$76.13B	33.05	27.88%	―	28.56%	49.10%
BCS	77 Outperform	$73.52B	9.67	9.44%	2.06%	17.50%	49.25%
ING	72 Outperform	$75.54B	11.31	11.71%	4.58%	2.20%	-0.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of NT Butterfield & Son Corporate Events

Butterfield Reports Strong Q3 2025 Financial Results

The Bank of N.T. Butterfield & Son Limited reported strong financial results for the third quarter of 2025, with a net income of $61.1 million, up from the previous quarter and the same period last year. The bank’s performance was driven by increased banking and foreign exchange fees, improved net interest income, and effective cost management. The bank’s proactive capital strategies, including share repurchases and dividend payments, further enhanced shareholder value, while maintaining a robust regulatory capital ratio.

Butterfield Announces Key Leadership Changes to Enhance Risk Management

On September 2, 2025, The Bank of N.T. Butterfield & Son Limited announced significant senior leadership changes to strengthen its focus on risk management and client relationships. Michael Schrum has been reappointed as Group Chief Financial Officer, replacing Craig Bridgewater, while Bri Hidalgo has been appointed as Group Chief Risk Officer. Meredith Steinhaus has been named Interim General Counsel. These appointments highlight Butterfield’s ability to leverage its internal talent pool to fill crucial roles, ensuring continuity and expertise in its operations.

Bank of NT Butterfield Releases Pillar 3 Disclosures for H1 2025

The Bank of N.T. Butterfield & Son Limited has released its Pillar 3 disclosures for the six-month period ending June 30, 2025. These disclosures provide insights into the bank’s capital and risk management strategies, in line with Basel III regulatory reforms. The bank is subject to various capital requirements, including CET1, Tier 1, and total capital ratios, as well as leverage and liquidity coverage ratios. The disclosures aim to enhance market discipline by offering transparency on risk exposures and management processes. The bank’s compliance with these standards reflects its commitment to maintaining a robust capital base and managing systemic risk in its operations.