Bank of NT Butterfield & Son (4IK) AI Stock Analysis

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Bank of NT Butterfield & Son

(Frankfurt:4IK)

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Positive Factors

Strong profitability and cash generationButterfield is converting a high level of profitability into substantial cash, supporting internal funding, dividends, and balance-sheet resilience. Consistently strong returns on equity also indicate that the bank is using its capital productively, strengthening earnings quality over the next several quarters.

Negative Factors

Weak top-line momentumRevenue contraction shows that strong margins are not currently being matched by broad-based top-line growth. If this persists, it could limit operating leverage and make future earnings increasingly dependent on cost control, portfolio mix, and favorable interest-rate or fee-income conditions.

Bank of NT Butterfield & Son (4IK) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.22B
Dividend Yield: 3.46%
Average Volume (3M): 23
Price to Earnings (P/E): 9.4
Beta (1Y): 0.34
Revenue Growth: -5.34%
EPS Growth: 3.56%
Country: Germany
Employees: 1,299
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Bank of NT Butterfield & Son Business Overview & Revenue Model

Company Description

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. The company offers retail and corporate checking, savings, and term deposits. It a...

Bank of NT Butterfield & Son Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:-0.99%|Next Earnings Date:Feb 14, 2027

Earnings Call SentimentPositive

The call was broadly positive. Strong profitability, improving net interest income and non-interest income, conservative asset quality, capital strength, and an acquisition that remains on track significantly outweighed the identified challenges, including the expected $500 million deposit outflow, higher expenses, increased nonaccrual loans, unrealized investment losses, and pressure on loan yields.

Positive Updates

Strong Third-Quarter Profitability

Net income was $61 million, or $1.50 per share, while core net income was $64.2 million, or $1.58 per share. Return on average common equity was 21.3%, and core return on average tangible common equity was 25%.

Negative Updates

Expected $500 Million Deposit Outflow

Butterfield received notice that approximately $500 million of deposits would exit within weeks. The deposits relate to a handful of private trust and corporate liquidation funds and are expected to bring deposit levels into the previously estimated range of $12 billion to $12.5 billion. Management said the balance sheet would be smaller by approximately $500 million, with the outflow coming from cash initially.

Company Guidance

Management expects quarterly core non interest expenses to be in the range of $93 million to $95 million until they close the CIBC Caribbean transaction, deposit levels to reach the previously estimated range of $12 billion to $12.5 billion where they expect for it to remain after approximately $500 million of deposits exit within weeks, NIM to be relatively flat in the short term with a sort of modest tailwind into the next year, and NII to be relatively flat in short term with a positive bias in the medium term; based on current implied forward rates, unrealized losses within accumulated other comprehensive income related to the AFS portfolio are expected to improve by approximately 21% over the next 12 months and 42% over the next 24 months, the CIBC Caribbean transaction is anticipated to close in the first half of 27, and TCE to TA is expected to remain above the targeted range of 6% to 6.5%.

Bank of NT Butterfield & Son Risk Analysis

Bank of NT Butterfield & Son disclosed 55 risk factors in its most recent earnings report. Bank of NT Butterfield & Son reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.If we cease to qualify as a foreign private issuer, we would be required to comply fully with the reporting requirements of the Exchange Act applicable to US domestic issuers, and we would incur significant additional legal, accounting and other expenses that we would not incur as a foreign private issuer.Q4, 2025

Bank of NT Butterfield & Son Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:4IK against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	81Outperform	$2.15B	9.87	16.38%	2.64%	2.09%	19.22%
FBP	75Outperform	$3.98B	10.94	18.91%	2.97%	3.06%	15.68%
BLX	74Outperform	$1.78B	8.47	13.96%	5.24%	3.55%	4.29%
FHB	72Outperform	$3.13B	11.28	9.83%	4.10%	1.10%	9.09%
BOH	71Outperform	$2.79B	12.32	13.31%	3.99%	0.73%	38.51%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

DE:4IK and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:4IK	Bank of N.T. Butterfield & Son	50.00	11.10	28.55%
BLX	Banco Latinoamericano De Comercio	51.31	9.09	21.53%
BOH	Bank Of Hawaii	70.23	7.10	11.24%
FBP	First Bancorp (FBP)	26.25	6.89	35.58%
OFG	OFG Bancorp	51.21	12.42	32.02%
FHB	First Hawaiian Inc	25.38	1.59	6.71%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Bank of NT Butterfield & Son AI Stock Analysis