Bank of N.T. Butterfield & Son (NTB)
NYSE:NTB
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Bank of NT Butterfield & Son
(NYSE:NTB)
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Rating:80Outperform
Price Target:
$64.00
▲(13.05% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by strong underlying financial quality (profitability, ROE, and conservative leverage) and an attractive valuation (low P/E with a solid dividend). Technicals are moderately supportive, while the earnings call adds confidence via stable NIM guidance and ongoing capital returns, tempered by near-term fee/OCI and integration-cost headwinds.
Positive Factors
High profitability & ROE
Sustained high returns (core ROACE ~24%) and consistent net income indicate efficient capital use and strong underlying margins. This profitability supports durable capital returns, internal funding for growth, and resilience through economic cycles, benefiting long-term shareholder value.
Negative Factors
Cooling revenue growth
Recent revenue declines and softer free cash flow momentum (TTM) signal that prior expansion has cooled. If revenue weakness persists, it can pressure operating leverage, slow dividend/buyback capacity and reduce funding for strategic investments over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & ROE
Sustained high returns (core ROACE ~24%) and consistent net income indicate efficient capital use and strong underlying margins. This profitability supports durable capital returns, internal funding for growth, and resilience through economic cycles, benefiting long-term shareholder value.
Read all positive factors
Bank of NT Butterfield & Son (NTB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.19B
Dividend Yield3.7%
Average Volume (3M)160.71K
Price to Earnings (P/E)8.4
Beta (1Y)0.63
Revenue Growth-7.23%
EPS Growth20.38%
CountryUS
Employees1,295
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)5.93
Shares Outstanding39,948,265
10 Day Avg. Volume128,382
30 Day Avg. Volume160,711
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 Cap0.20
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit0.71
Enterprise Value/Ebitda1.57
Forecast
1Y Price Target
$58.50Price Target Upside3.34% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)6.17
Revenue Forecast (FY)$634.67M
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. It accepts retail and corporate checking, savings, term, and interest bearing a...
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:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented solid core financial performance (strong profitability metrics, modest NIM expansion, disciplined capital returns and an accretive strategic acquisition) and reinforced a conservative balance sheet and credit profile. Headwinds noted include a QoQ decline in fee income, increased unrealized AFS losses, some short‑term past-due migration in London mortgages, and near-term integration costs from the Guernsey acquisition. Management expects NIM to be broadly stable with a slight positive bias and reiterated disciplined acquisition and cost management. Overall, the positives (robust profitability, capital returns, strategic acquisition and resilient asset quality) outweigh the identified challenges, which appear manageable and largely short-to-medium term.Positive Updates
Strong Earnings and Profitability
Reported net income of $62.6 million and core net income of $63.2 million; core earnings per share of $1.55 and core return on average common equity of 24.1% for Q1 2026.
Negative Updates
Decline in Non-Interest Income
Non-interest income decreased $3.7 million QoQ, driven by seasonally lower fourth-quarter banking fees and lower trust fees (time-based and special fees) relative to the prior quarter; fee income ratio fell to 40.6% from 41.7%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings and Profitability
Reported net income of $62.6 million and core net income of $63.2 million; core earnings per share of $1.55 and core return on average common equity of 24.1% for Q1 2026.
Read all positive updates
Company Guidance
On the Q1 2026 call management provided forward guidance that NIM should be broadly stable with a slight positive bias (Q1 NIM 2.75%, exit March ~2.70%), supported by lower deposit costs (cost of deposits 1.24%) and asset repricing (average investment yield 2.78%, investment security yield ~3.96%, ~ $1B of securities resetting with ~1% tailwind), and they expect OCI unrealized losses to improve over the next 12–24 months (OCI AFS losses $99.7M). They reiterated capital returns (quarterly cash dividend $0.50/sh and continued buybacks — 800k shares for $42.4M this quarter), said the Rollinson & Hunter Guernsey deal has closed and should add £8–10M of annualized fees, and flagged integration/onboarding costs that could raise core non‑interest expenses (management’s baseline core expense run‑rate $90–92M/quarter without the deal). Other balance‑sheet and risk metrics to note: core net income $63.2M (net income $62.6M), core EPS $1.55, core ROACE 24.1%, deposits expected to normalize around $12–12.5B, low risk density 28.7%, tangible book value $26.56/sh (up 0.6% q/q), non‑accruals 2%, ACL 0.6% of loans, and the bank remains disciplined on acquisition pricing (targeting ~8x EBITDA and mid‑teens IRR).Bank of NT Butterfield & Son Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.47M | 799.84M | 816.50M | 761.89M | 606.42M | 521.55M |
| Gross Profit | 613.13M | 606.70M | 580.32M | 578.77M | 549.23M | 499.59M |
| EBITDA | 276.81M | 266.79M | 263.00M | 262.47M | 257.88M | 235.25M |
| Net Income | 240.82M | 231.90M | 216.32M | 225.49M | 214.02M | 162.67M |
Balance Sheet | ||||||
| Total Assets | 14.42B | 14.10B | 14.23B | 13.37B | 14.31B | 15.34B |
| Cash, Cash Equivalents and Short-Term Investments | 5.53B | 2.70B | 4.67B | 2.29B | 4.96B | 3.38B |
| Total Debt | 132.30M | 38.72M | 191.29M | 98.49M | 172.29M | 172.00M |
| Total Liabilities | 13.29B | 12.95B | 13.21B | 12.37B | 13.44B | 14.36B |
| Stockholders Equity | 1.14B | 1.14B | 1.02B | 1.00B | 864.82M | 977.00M |
Cash Flow | ||||||
| Free Cash Flow | 249.70M | 254.81M | 243.90M | 246.02M | 192.40M | 235.63M |
| Operating Cash Flow | 275.65M | 279.56M | 265.43M | 300.29M | 219.27M | 251.35M |
| Investing Cash Flow | -458.20M | 102.36M | -581.02M | 681.80M | 292.02M | -1.91B |
| Financing Cash Flow | -26.37M | -745.64M | 735.56M | -1.45B | -506.81M | 535.78M |
Bank of NT Butterfield & Son Technical Analysis
Positive
56.61
Price Trends
52.41
Positive
50.99
Positive
47.28
Positive
Market Momentum
1.35
Negative
73.90
Negative
78.53
Neutral
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 56.61 is above the 20-day moving average (MA) of 53.84, above the 50-day MA of 52.41, and above the 200-day MA of 47.28, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 73.90 is Negative, neither overbought nor oversold. The STOCH value of 78.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.19B | 8.36 | 21.63% | 3.70% | -7.23% | 20.38% | |
79 Outperform | $16.91B | 10.30 | 16.06% | 2.08% | 3.79% | 19.50% | |
71 Outperform | $79.39B | 10.46 | 12.71% | 4.14% | 10.57% | 19.15% | |
70 Neutral | $68.83B | 22.67 | 28.67% | ― | 39.67% | 44.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $60.89B | 3.74 | 14.33% | 3.67% | 7.21% | 26.24% | |
62 Neutral | $79.88B | 6.17 | 9.46% | 1.71% | 12.95% | 21.64% |
* Financial Sector Average
NTB
Bank of NT Butterfield & Son
54.76
15.26
38.62%
BCS
Barclays
22.85
7.21
46.11%
EWBC
East West Bancorp
123.42
38.21
44.85%
ING
ING Groep
27.80
8.62
44.92%
NWG
NatWest Group
15.08
3.02
25.05%
NU
Nu Holdings
14.16
1.79
14.47%
Bank of NT Butterfield & Son Corporate Events
Butterfield Posts Solid Q1 2026 Results and Closes Guernsey Trust Acquisition
Apr 28, 2026
Butterfield reported first-quarter 2026 net income of $62.6 million, or $1.53 per share, and core net income of $63.2 million, or $1.55 per share, with returns on average common equity of 22.1% and net interest margin of 2.75%. Results on March 31...
Butterfield Files Basel III Pillar 3 Capital and Risk Report for Second Half of 2025
Mar 2, 2026
The Bank of N.T. Butterfield Son Limited has filed a Form 6-K with the U.S. Securities and Exchange Commission on March 2, 2026, furnishing its Basel III Pillar 3 capital and risk management disclosures for the six-month period ended December 31,...
Butterfield to Acquire Rawlinson & Hunter Guernsey, Expanding Channel Islands Trust Business
Feb 19, 2026
On February 19, 2026, Butterfield announced an agreement to acquire Rawlinson Hunter Guernsey, an independently owned trust and corporate services provider established in 1980. The deal will add around 50 staff, 71 client groups and $9.0 billion ...
Butterfield Posts Strong 2025 Results, Boosts Capital Returns and Board Strength
Feb 9, 2026
The Bank of N.T. Butterfield Son Limited reported higher profitability for the year ended December 31, 2025, with net income rising to $231.9 million, or $5.47 per diluted share, and core net income reaching $237.5 million, or $5.60 per share, bo...
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.