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:79Outperform
Price Target:
$61.00
▲(8.89% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Bank of NT Butterfield & Son (NTB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend Yield3.7%
Average Volume (3M)167.74K
Price to Earnings (P/E)8.9
Beta (1Y)0.68
Revenue Growth-0.09%
EPS Growth18.47%
CountryUS
Employees1,295
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.54
Shares Outstanding39,948,265
10 Day Avg. Volume130,248
30 Day Avg. Volume167,743
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 Cap0.33
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit1.22
Enterprise Value/Ebitda2.78
Forecast
1Y Price Target
$57.50Price Target Upside2.64% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.94
Revenue Forecast (FY)$613.05M
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
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...
Bank of NT Butterfield & Son Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong financial and capital metrics—robust core earnings and EPS growth, high returns on tangible equity, meaningful tangible book value appreciation, improved fee income, disciplined capital returns (dividends and buybacks), and conservative asset quality. Key challenges were modest quarter-over-quarter NIM pressure from lower yields, a temporary rise in certain operating expenses, deposit outflows (largely offset by FX translation), remaining unrealized AFS losses, and isolated commercial credit items. Overall, the positives (earnings growth, capital returns, fee momentum, and balance-sheet strength) outweigh the negatives.Positive Updates
Strong Earnings and EPS Growth
Full-year net income of $231.9 million and core net income of $237.5 million; core net income per share grew 17.4% year-over-year to $5.60 per share.
Negative Updates
Quarterly NIM Pressure and Yield Reduction
Quarterly net interest margin decreased 4 basis points QoQ to 2.69% (from 2.73%) due to lower treasury and loan yields following central bank cuts (treasury and loan yields were ~20 and ~23 bps lower, respectively).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Earnings and EPS Growth
Full-year net income of $231.9 million and core net income of $237.5 million; core net income per share grew 17.4% year-over-year to $5.60 per share.
Read all positive updates
Company Guidance
Management's guidance emphasized cost and capital priorities: quarterly core noninterest expenses are expected to settle around $90–$92 million (Q4 was elevated and Q1 is seasonally a couple million lower), the Board approved a 2026 share repurchase authorization of up to 3.0 million shares or $140 million (after repurchasing 3.5 million shares for $146.7 million in 2025, including 600,000 shares for $29.6 million in Q4), and the quarterly cash dividend was maintained at $0.50 per share (2025 combined payout ratio 97%). They also expect further OCI improvement with an additional 28% burn down over the next 12 months (AFS unrealized losses $89.4 million, improved $12.1 million QoQ). Key operating and capital metrics to watch cited on the call included FY2025 net income $231.9 million and core net income $237.5 million, core net income per share $5.60 (up 17.4% YoY), core ROTCE 24.2% for 2025 (24.6% in Q4), net interest margin 2.69% (up 5 bps YoY, down 4 bps QoQ) with Q4 net interest income before PCL $92.6 million, average interest‑earning assets $13.7 billion (up $199.4 million QoQ), average deposit cost 150 bps for the year (137 bps in Q4), low‑risk density 28.3%, TCE/TA 7.5% (target 6–6.5%), allowance for credit losses 0.6%, non‑accrual loans ~2% and no net charge‑offs, and a loan mix of 71% full‑recourse residential with ~80% of loans at LTVs below 70%.Bank of NT Butterfield & Son Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 799.84M | 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 | 216.32M | 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 | 2.70B | 4.67B | 2.29B | 2.98B | 3.38B |
| Total Debt | 38.72M | 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 | 102.36M | -581.02M | 681.80M | 292.02M | -1.91B |
| Financing Cash Flow | -745.64M | 735.56M | -1.45B | -506.81M | 535.78M |
Bank of NT Butterfield & Son Technical Analysis
Positive
56.02
Price Trends
51.99
Positive
50.42
Positive
46.96
Positive
Market Momentum
1.19
Negative
74.52
Negative
93.32
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 56.02 is above the 20-day moving average (MA) of 52.50, above the 50-day MA of 51.99, and above the 200-day MA of 46.96, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 74.52 is Negative, neither overbought nor oversold. The STOCH value of 93.32 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.24B | 8.94 | 21.21% | 3.70% | -0.09% | 18.47% | |
71 Outperform | $81.45B | 11.24 | 12.46% | 4.14% | 2.20% | -0.17% | |
70 Outperform | $15.90B | 11.73 | 15.77% | 2.08% | 3.87% | 14.61% | |
70 Neutral | $72.71B | 28.20 | 28.67% | ― | 30.94% | 40.87% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $80.96B | 9.29 | 9.41% | 1.71% | 17.50% | 49.25% | |
58 Neutral | $65.64B | 4.48 | 14.33% | 3.67% | 7.43% | 30.31% |
* Financial Sector Average
NTB
Bank of NT Butterfield & Son
56.02
21.11
60.47%
BCS
Barclays
23.73
9.74
69.60%
EWBC
East West Bancorp
115.55
43.06
59.39%
ING
ING Groep
28.69
11.40
65.91%
NWG
NatWest Group
16.55
5.30
47.14%
NU
Nu Holdings
14.96
4.31
40.47%
Bank of NT Butterfield & Son Corporate Events
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...
Butterfield Launches $140 Million Share Repurchase Program for 2026
Dec 8, 2025
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, a...
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.