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

• Market Cap: $2.04B
• Dividend Yield: 3.7%
• Average Volume (3M): 147.95K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.67
• Revenue Growth: -0.09%
• EPS Growth: 18.47%
• Country: US
• Employees: 1,295
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.54
• Shares Outstanding: 39,948,265
• 10 Day Avg. Volume: 169,432
• 30 Day Avg. Volume: 147,948
• PEG Ratio: 0.53
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 3.42
• P/FCF Ratio: 8.14
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $57.50
• Price Target Upside: 12.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $61.00 ▲(19.61% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

NTB scores well primarily on financial strength (high profitability/returns, conservative balance sheet, dependable cash generation) and attractive valuation (low P/E with a solid dividend). The earnings call reinforced strong capital returns and asset-quality positioning, while the main constraints on the score are revenue volatility and near-term banking headwinds (modest NIM pressure, deposit outflows, and residual OCI losses).

Positive Factors

High returns on capital

Sustained top‑quartile returns on tangible equity indicate efficient capital allocation and strong underlying profitability. High ROTCE supports self‑funding of growth, dividends and buybacks, and provides a durable buffer to absorb cyclical earnings shocks.

Conservative balance sheet & asset quality

A liquid, conservatively structured balance sheet with low risk density, modest allowances and no recent net charge‑offs reduces solvency and liquidity risk. Large share of full‑recourse residential loans with low LTVs bolsters credit stability over economic cycles.

Growing fee income and strategic M&A

Expanding fiduciary/wealth capabilities and recurring fee streams through targeted M&A and higher noninterest income strengthens revenue diversification. Adding assets under administration and client relationships enhances long‑term fee revenue resilience and market position.

Negative Factors

Top‑line volatility

Marked revenue swings reduce predictability of earnings and make investment planning harder. Persistent top‑line volatility can pressure reinvestment, raise sensitivity to originations and markets, and mask whether earnings are durable or driven by timing and one‑offs.

Deposit outflows & rate sensitivity

Ongoing unrealized securities losses and heightened interest‑rate sensitivity amplify funding and OCI risk. Deposit outflows and rising deposit beta can compress NIM and force asset redeployment, pressuring net interest income and capital over multiple quarters.

Localized commercial credit stress

Isolated commercial defaults can signal pockets of credit deterioration that may widen in stress periods. Even localized commercial losses raise provisioning needs, increase monitoring costs, and can dent asset‑quality metrics and lending capacity if unresolved.

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 and non-interest bearing deposits, as well as certificate of deposits. The company's lending portfolio includes residential mortgage lending, automobile lending, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, and fiduciary services. Further, it offers debit cards; automated teller machines; and personal and business deposit, merchant acquiring, and mobile and internet banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada. It also operates through 3 branches in Bermuda and 4 branches in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.

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

Strong underlying fundamentals: high profitability and ROE, conservative leverage, and consistently positive free cash flow that tracks earnings well. The main offset is meaningful revenue volatility, including a sharp 2025 decline, which raises durability questions despite resilient margins and net income.

Income Statement

Profitability is strong and consistent, with net profit margin improving to ~38% in 2025 (from ~26–35% in prior years) and solid operating profitability (EBIT margin ~39% in 2025). However, the top line is volatile: revenue fell sharply in 2025 (-24.7% year over year) after modest growth in 2024 and strong growth in 2023, which tempers the earnings quality despite stable net income.

Balance Sheet

Balance sheet leverage appears conservative based on the provided totals: debt-to-equity was low in 2021–2024 (~0.10–0.22) and reported as 0.0 in 2025, alongside steady equity growth (to ~$1.14B). Returns on equity are consistently high (~20–25% from 2022–2025), indicating efficient capital use. The main watch item is that total assets are large relative to equity (as expected for banks), so even with low reported debt, the business remains sensitive to asset quality and funding conditions.

Cash Flow

Cash generation is solid: operating cash flow and free cash flow are consistently positive, and free cash flow closely tracks earnings (free cash flow is ~82–94% of net income across the period, ~91% in 2025). Free cash flow growth was positive in 2025 (~13.6%) after being roughly flat to down in 2024, showing resilience. The weaker point is variability year-to-year in free cash flow growth (notably declines in 2020 and 2022), indicating some cyclicality in cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	607.00M	816.50M	761.89M	606.42M	521.55M
Gross Profit	606.70M	580.32M	578.77M	549.23M	499.59M
EBITDA	266.79M	263.00M	262.47M	257.88M	235.25M
Net Income	231.90M	216.30M	225.49M	214.02M	162.67M
Balance Sheet
Total Assets	14.10B	14.23B	13.37B	14.31B	15.34B
Cash, Cash Equivalents and Short-Term Investments	0.00	4.67B	2.29B	2.98B	3.38B
Total Debt	0.00	226.89M	98.49M	172.00M	172.00M
Total Liabilities	12.95B	13.21B	12.37B	13.44B	14.36B
Stockholders Equity	1.14B	1.02B	1.00B	865.00M	977.00M
Cash Flow
Free Cash Flow	254.81M	243.90M	246.02M	192.40M	235.63M
Operating Cash Flow	279.56M	265.43M	300.29M	219.27M	251.35M
Investing Cash Flow	0.00	-581.02M	681.80M	292.02M	-1.91B
Financing Cash Flow	0.00	735.56M	-1.45B	-506.81M	535.78M

Bank of NT Butterfield & Son Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 51 is below the 20-day moving average (MA) of 51.97, above the 50-day MA of 50.84, and above the 200-day MA of 45.21, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWBC	80 Outperform	$15.75B	12.20	15.94%	2.08%	3.87%	14.61%
NTB	79 Outperform	$2.04B	9.12	21.45%	3.70%	-0.09%	18.47%
NU	79 Outperform	$80.10B	31.53	27.80%	―	30.94%	40.87%
ING	71 Outperform	$82.36B	12.33	12.79%	4.14%	2.20%	-0.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCS	60 Neutral	$85.57B	10.89	10.00%	1.71%	17.50%	49.25%
NWG	58 Neutral	$65.02B	9.28	15.42%	3.67%	7.43%	30.31%

Bank of NT Butterfield & Son Corporate Events

Butterfield to Acquire Rawlinson & Hunter Guernsey, Expanding Channel Islands Trust Business

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 in assets under administration, expanding Butterfield’s private trust footprint in the Channel Islands and reinforcing its position as a leading global provider of fiduciary services.

Management said the transaction, expected to close in the first half of 2026 subject to customary regulatory approvals, is aligned with Butterfield’s strategy of growing fee-based trust revenues through targeted M&A in markets where it already has scale. The acquisition covers only the Guernsey entity of the Rawlinson & Hunter network, and is intended to deliver continuity of service for R&H Guernsey clients while deepening Butterfield’s $134.7 billion trust and fiduciary platform across multiple offshore financial centres.

The most recent analyst rating on (NTB) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Bank of NT Butterfield & Son stock, see the NTB Stock Forecast page.

Butterfield Posts Strong 2025 Results, Boosts Capital Returns and Board Strength

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, both ahead of 2024. Full-year returns on average common equity and core tangible common equity improved to 21.7% and 24.2%, respectively, while efficiency ratios edged better, reflecting disciplined expense control and stronger non-interest income from relationship-focused banking and private trust activities.

For the fourth quarter of 2025, the bank posted net and core net income of $63.8 million, or $1.54 per diluted share, with return on average common equity at 22.7% and a net interest margin of 2.69% supported by lower deposit costs and redeployment into higher-yielding securities. Butterfield continued active capital management, declaring a $0.50 per-share dividend for the quarter, executing $29.6 million of share buybacks within a $146.7 million full-year repurchase effort, and launching a new authorization for up to 3.0 million shares, while strengthening its balance sheet with a tangible book value of $26.41 per share and a conservatively high 27.8% total regulatory capital ratio.

Operationally, fourth-quarter non-interest income increased on seasonal banking fees, higher trust revenues, and card incentives, offsetting higher operating expenses driven by professional services, personnel, and technology investments. Deposits remained stable at around $12.7 billion, and the bank’s adoption of the revised Basel standardized credit risk approach under Bermuda’s updated rules underscores its strong regulatory capital position, while the appointment of Meroe Park as an independent director is expected to enhance governance and oversight across operations, technology, and cybersecurity.

The most recent analyst rating on (NTB) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Bank of NT Butterfield & Son stock, see the NTB Stock Forecast page.

Butterfield Launches $140 Million Share Repurchase Program for 2026

On December 8, 2025, The Bank of N.T. Butterfield & Son Limited announced a new $140 million share repurchase program, allowing the purchase of up to 3 million ordinary shares through December 31, 2026. This initiative, effective January 1, 2026, aims to enhance capital management flexibility, supporting dividends, organic growth, and potential acquisitions, while replacing the existing program set to terminate at the end of 2025.

The most recent analyst rating on (NTB) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Bank of NT Butterfield & Son stock, see the NTB Stock Forecast page.