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

• Market Cap: $2.02B
• Dividend Yield: 3.83%
• Average Volume (3M): 186.72K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.66
• Revenue Growth: -0.09%
• EPS Growth: 18.47%
• Country: US
• Employees: 1,295
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.46
• Shares Outstanding: 41,203,102
• 10 Day Avg. Volume: 124,146
• 30 Day Avg. Volume: 186,717
• PEG Ratio: 1.95
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 6.75
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $52.33
• Price Target Upside: 6.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.23
• Revenue Forecast (FY): $594.05M

• Rating: 82 Outperform
• Price Target: $51.00 ▲(3.93% Upside)

Bank of NT Butterfield & Son's stock is rated highly due to its strong financial performance, attractive valuation, and positive earnings call sentiment. The company's robust profitability, efficient cash flow management, and conservative leverage provide a solid foundation. The low P/E ratio and high dividend yield further enhance its attractiveness. While technical analysis shows some bearish momentum, the overall outlook remains positive.

Positive Factors

Strong Financial Performance

Strong financial performance with high net income and core earnings per share indicates robust profitability and operational efficiency, supporting long-term growth.

Cash Flow Management

Efficient cash flow management ensures the company can sustain operations, invest in growth opportunities, and return value to shareholders through dividends and buybacks.

Leadership Changes

Strategic leadership changes enhance risk management and corporate strategy, ensuring stability and continuity in operations, crucial for long-term success.

Negative Factors

Unrealized Losses in Investment Portfolio

Significant unrealized losses in the investment portfolio could impact future earnings and capital adequacy, posing a risk to financial stability.

Decrease in Average Loan Balances

A decrease in average loan balances may indicate challenges in loan origination and demand, potentially affecting future interest income and growth prospects.

Revenue Growth Decline

A decline in revenue growth can signal weakening market position or competitive pressures, impacting long-term profitability and market share.

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

Bank of NT Butterfield & Son demonstrates strong financial health with robust profitability, efficient cash flow management, and conservative leverage. The income statement reflects strong profitability with a TTM gross profit margin of 76.6% and a net profit margin of 33.4%. The balance sheet is stable with a low debt-to-equity ratio of 0.09, and cash flow metrics reveal a strong position with a TTM free cash flow growth rate of 12.0%.

Income Statement

The income statement reflects strong profitability with a TTM gross profit margin of 76.6% and a net profit margin of 33.4%. Revenue growth is positive at 11.5% over the past year, indicating a robust upward trajectory. The EBIT and EBITDA margins are solid at 41.9% and 31.8%, respectively, showcasing operational efficiency. Overall, the company demonstrates strong revenue growth and profitability, though the slight dip in net income compared to the previous year suggests potential areas for improvement.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The return on equity is high at 20.5%, reflecting effective use of shareholder funds. The equity ratio stands at 7.5%, suggesting a modest level of equity relative to total assets, typical for the banking industry. While the financial leverage is manageable, the lower equity ratio could be a potential risk if asset quality deteriorates.

Cash Flow

Cash flow metrics reveal a strong position with a TTM free cash flow growth rate of 12.0%. The operating cash flow to net income ratio is healthy at 1.38, indicating robust cash generation relative to reported profits. Additionally, the free cash flow to net income ratio of 1.26 suggests efficient conversion of earnings to cash flow. Overall, the company's cash generation and growth are strong, supporting its operational and financial activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	811.63M	816.50M	761.89M	606.42M	521.55M	502.07M
Gross Profit	589.28M	580.32M	578.77M	549.23M	499.59M	502.07M
EBITDA	266.90M	263.00M	262.47M	257.88M	235.25M	0.00
Net Income	219.38M	216.30M	225.49M	214.02M	162.67M	147.22M
Balance Sheet
Total Assets	14.19B	14.23B	13.37B	14.31B	15.34B	14.74B
Cash, Cash Equivalents and Short-Term Investments	4.80B	4.67B	2.29B	2.98B	3.38B	4.11B
Total Debt	38.24M	226.89M	98.49M	172.00M	172.00M	171.00M
Total Liabilities	13.12B	13.21B	12.37B	13.44B	14.36B	13.76B
Stockholders Equity	1.07B	1.02B	1.00B	865.00M	977.00M	982.00M
Cash Flow
Free Cash Flow	283.57M	243.90M	246.02M	192.40M	235.63M	167.58M
Operating Cash Flow	312.73M	265.43M	300.29M	219.27M	251.35M	188.15M
Investing Cash Flow	-897.13M	-581.02M	681.80M	292.02M	-1.91B	-41.71M
Financing Cash Flow	-343.20M	735.56M	-1.45B	-506.81M	535.78M	546.45M

Bank of NT Butterfield & Son Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 49.07 is above the 20-day moving average (MA) of 46.35, above the 50-day MA of 44.07, and above the 200-day MA of 41.93, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 76.19 is Negative, neither overbought nor oversold. The STOCH value of 94.81 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWBC	84 Outperform	$15.18B	12.17	15.54%	2.18%	3.87%	14.61%
NTB	82 Outperform	$2.02B	9.07	20.99%	3.83%	-0.09%	18.47%
NWG	81 Outperform	$65.93B	9.57	14.58%	3.90%	7.43%	30.31%
NU	79 Outperform	$80.00B	31.85	27.80%	―	30.94%	40.87%
BCS	77 Outperform	$80.46B	10.64	9.44%	1.88%	17.50%	49.25%
ING	72 Outperform	$77.41B	11.80	11.71%	4.44%	2.20%	-0.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Bank of NT Butterfield & Son Corporate Events

Butterfield Reports Strong Q3 2025 Financial Results

The Bank of N.T. Butterfield & Son Limited reported strong financial results for the third quarter of 2025, with a net income of $61.1 million, up from the previous quarter and the same period last year. The bank’s performance was driven by increased banking and foreign exchange fees, improved net interest income, and effective cost management. The bank’s proactive capital strategies, including share repurchases and dividend payments, further enhanced shareholder value, while maintaining a robust regulatory capital ratio.