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Bank of NT Butterfield & Son
(NYSE:NTB)
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Rating:81Outperform
Price Target:
$71.00
▲(16.41% Upside)
Action:Reiterated
Date:07/31/26
NTB scores well primarily on strong financial resilience and profitability (low leverage, strong returns) and an attractive valuation (low P/E with a solid dividend). Trend indicators are supportive with price above key moving averages, while the earnings call adds a positive but balanced outlook—strong core performance and acquisition upside tempered by slightly higher credit/expense pressures and near-term capital constraints (paused buybacks and planned financing).
Positive Factors
Strong capital and low leverage
Very low leverage and a conservative balance sheet reduce refinancing and interest-rate risk, providing resilience through cycles. High regulatory capital supports dividend continuity, acquisition funding capacity and the ability to absorb losses, underpinning durable financial flexibility.
Negative Factors
Softening revenue and limited balance-sheet growth
Top-line softness (TTM revenue down ~5%) and largely static assets suggest constrained organic growth. Without stronger loan, deposit or AUA expansion, the bank may need M&A to drive scale, increasing reliance on inorganic growth and exposing earnings to integration and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital and low leverage
Very low leverage and a conservative balance sheet reduce refinancing and interest-rate risk, providing resilience through cycles. High regulatory capital supports dividend continuity, acquisition funding capacity and the ability to absorb losses, underpinning durable financial flexibility.
Read all positive factors
Bank of NT Butterfield & Son (NTB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.48B
Dividend Yield3.25%
Average Volume (3M)189.43K
Price to Earnings (P/E)10.8
Beta (1Y)0.57
Revenue Growth-1.41%
EPS Growth14.61%
CountryUS
Employees1,299
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.84
Shares Outstanding39,326,687
10 Day Avg. Volume130,889
30 Day Avg. Volume189,426
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.82
Price to Sales (P/S)2.59
P/FCF Ratio8.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$63.33Price Target Upside3.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.01
Revenue Forecast (FY)$638.83M
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. I...
How the Company Makes Money
Butterfield primarily earns revenue through (1) net interest income and (2) fee-based income. Net interest income is generated by taking customer deposits and other funding and investing them in interest-earning assets (such as loans to customers ...
Bank of NT Butterfield & Son Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call was broadly constructive: core earnings, ROTCE (25%), and fee income growth highlighted strong franchise performance alongside a conservative, high‑quality balance sheet and liquidity. Management emphasized successful integration of a small acquisition (R&H) and provided encouraging progress and strategic rationale for the larger CIBC Caribbean acquisition (pro forma ~$29B assets, >$400M run‑rate earnings). Offsetting items included a modest rise in non‑accruals (2.2% of loans), a QoQ increase in operating expenses tied to recent acquisitions, a small increase in unrealized AFS losses, and near‑term capital management tradeoffs (paused buybacks and planned financing). Overall, positives (robust earnings, capital/asset strength, acquisition upside) materially outweigh the contained challenges.Positive Updates
Strong reported and core earnings
Net income of $46.9M and core net income of $63.9M in Q2 FY26; core EPS $1.58 and core ROTCE of 25% (quarter).
Negative Updates
Slight deterioration in asset quality
Non‑accrual loans increased to $96M, or 2.2% of gross loans (up from 2.0% prior quarter), driven primarily by residential real estate exposures in the Channel Islands and UK.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong reported and core earnings
Net income of $46.9M and core net income of $63.9M in Q2 FY26; core EPS $1.58 and core ROTCE of 25% (quarter).
Read all positive updates
Company Guidance
Management's guidance was for a broadly stable net interest margin with a slight positive bias (Q2 NIM 2.74%) and NII sensitivity of +3.4% for a 100‑bp rate rise (+6.9% for 200 bps); near‑term operating guidance includes a core non‑interest expense run‑rate of $93–95M until the expected close of the CIBC Caribbean deal in H1‑2027 (Q2 core expenses $92.9M), continued quarterly dividends of $0.50/share, a pause on buybacks after repurchasing 300k shares while capital is rebuilt, and likely subordinated financing in Q4; Q2 reported and pro forma metrics noted were: net interest income $95.6M, core net income $63.9M (core EPS $1.58, core ROTCE 25%), core efficiency ~57% (through‑cycle target 60%), total assets $14.3B, loans $4.4B, investment portfolio $5.7B (100% AA+; duration 4.7 years; AFS unrealized losses $101M with OCI projected to improve ~20% in 12 months and ~43% in 24 months), period‑end deposits $12.9B (average $13.1B), low risk density 27.9%, nonaccruals $96M (2.2% of gross loans), allowance $27.8M (0.6% of loans), and the announced combination is expected to create a pro forma bank of ~$29B assets, $25B deposits, $1.7B tangible common equity and >$400M of run‑rate earnings.Bank of NT Butterfield & Son Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 719.37M | 799.84M | 816.50M | 761.89M | 606.42M | 521.55M |
| Gross Profit | 625.15M | 606.70M | 580.32M | 578.77M | 549.23M | 499.59M |
| EBITDA | 278.92M | 266.79M | 263.00M | 262.47M | 257.88M | 235.25M |
| Net Income | 234.40M | 231.90M | 216.32M | 225.49M | 214.02M | 162.67M |
Balance Sheet | ||||||
| Total Assets | 14.35B | 14.10B | 14.23B | 13.37B | 14.31B | 15.34B |
| Cash, Cash Equivalents and Short-Term Investments | 7.97B | 2.70B | 4.67B | 4.49B | 4.96B | 6.85B |
| Total Debt | 39.09M | 38.72M | 191.29M | 98.49M | 172.29M | 171.88M |
| Total Liabilities | 13.20B | 12.95B | 13.21B | 12.37B | 13.44B | 14.36B |
| Stockholders Equity | 1.15B | 1.14B | 1.02B | 1.00B | 864.82M | 977.00M |
Cash Flow | ||||||
| Free Cash Flow | 210.24M | 254.81M | 243.90M | 246.02M | 192.40M | 235.63M |
| Operating Cash Flow | 234.04M | 279.56M | 265.43M | 300.29M | 219.27M | 251.35M |
| Investing Cash Flow | -312.29M | 102.36M | -581.02M | 681.80M | 292.02M | -1.91B |
| Financing Cash Flow | 34.30M | -745.64M | 735.56M | -1.45B | -506.81M | 535.78M |
Bank of NT Butterfield & Son Technical Analysis
Neutral
60.99
Price Trends
60.15
Positive
57.44
Positive
53.05
Positive
Market Momentum
0.86
Negative
50.67
Neutral
52.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTB, the sentiment is Neutral. The current price of 60.99 is below the 20-day moving average (MA) of 61.57, above the 50-day MA of 60.15, and above the 200-day MA of 53.05, indicating a neutral trend. The MACD of 0.86 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTB.
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 Risks
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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.48B | 10.78 | 20.68% | 3.28% | -1.41% | 14.61% | |
74 Outperform | $18.57B | 12.91 | 16.19% | 2.14% | 3.74% | 21.62% | |
72 Outperform | $76.26B | 7.30 | 16.16% | 4.87% | 6.60% | 29.61% | |
72 Outperform | $71.20B | 19.92 | 28.94% | ― | 53.50% | 55.50% | |
71 Outperform | $99.73B | 13.43 | 13.38% | 4.46% | 12.60% | 24.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $93.82B | 10.60 | 10.11% | 1.61% | 12.33% | 22.63% |
* Financial Sector Average
NTB
Bank of NT Butterfield & Son
61.51
19.07
44.92%
BCS
Barclays
27.37
7.69
39.05%
EWBC
East West Bancorp
135.07
36.39
36.88%
ING
ING Groep
35.49
11.83
49.97%
NWG
NatWest Group
18.74
4.75
33.92%
NU
Nu Holdings
14.35
1.23
9.38%
Bank of NT Butterfield & Son Corporate Events
Butterfield Posts Q2 2026 Results and Advances Caribbean Expansion Strategy
Jul 27, 2026
On July 27, 2026, Butterfield reported second-quarter 2026 net income of $46.9 million, or $1.16 per share, down from the prior quarter due to $16.9 million in acquisition-related costs, while core net income rose to $63.9 million, or $1.58 per sh...
Butterfield to Acquire Control of CIBC Caribbean in $1.8 Billion Deal
May 28, 2026
On May 27–28, 2026, Butterfield signed a definitive agreement to acquire Canadian Imperial Bank of Commerce’s 91.7% stake in CIBC Caribbean Bank Limited in a cash-and-share transaction valuing CIBC Caribbean at about $1.8 billion. The ...
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.