Bank of NT Butterfield and Son Limited (NTB)

Butterfield Announces Agreement to Acquire Control of CIBC Caribbean in $1.8 Billion TransactionMay 28, 2026 5:30 AM
Business Wire Transaction unites two premier, full-service banking and wealth management platforms with complementary experience in international financial centers and attractive Caribbean markets to create a $29 billion financial institution The Bank of N.T. Butterfield & Son Limited (“Butterfield”) (NYSE: NTB | BSX: NTB.BH) has entered into a definitive agreement to acquire CIBC’s 91.7% interest in CIBC Caribbean Bank Limited (“CIBC Caribbean”), a relationship bank with a longstanding history serving communities across the Caribbean, to create a leading banking and wealth management platform in international financial centers and attractive Caribbean markets, with approximately $29 billion in assets. The transaction brings together two complementary banks with deep roots and established relationships across their combined footprint with heightened capacity, greater diversification and scalable growth to drive long-term value for all stakeholders. Butterfield and CIBC Caribbean’s expanded capabilities and scale are expected to provide enhanced corporate, personal and wealth management services across their combined client bases. Clients can expect greater ability to process cross-border payments, increased consumer and merchant banking capabilities, and continued investments in technology and digital banking infrastructure. Butterfield will maintain both organizations’ operational footprints, including CIBC Caribbean’s regional headquarters in Barbados, ensuring continuity for customers and employees. Butterfield is also committed to its and CIBC Caribbean’s philanthropic, financial education, and sustainability initiatives in each of their geographies, which will continue to provide outsized, tangible and mutually beneficial financial impacts for the combined company and its communities. Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said: “Since Butterfield’s 2016 listing on the NYSE, we have successfully grown and enhanced profitability through bank and trust acquisitions. This deal combines two storied and complementary banks, with significant local scale advantages and time-honored customer relationships in their respective core jurisdictions. The transaction will offer both scale and diversification to the benefit of all stakeholders, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centers and attractive Caribbean markets. I look forward to welcoming our talented new colleagues and valued clients.” Mark St. Hill, Chief Executive Officer of CIBC Caribbean, added: “For our clients, employees and communities, this combination brings together two organizations with shared values and a common focus on relationship banking, innovating and community impact. We look forward to building on our legacy as the region’s champion in financial services.” Harry Culham, President and CEO, CIBC, commented: "The entire CIBC Caribbean team led by Mark St. Hill has built a strong, client-focused bank across the region, and we look forward to realizing the strategic benefits of this transaction to deliver more for all stakeholders.” Transaction Details The total consideration to be paid for CIBC Caribbean will be comprised of $1,091 million in cash and $703 million in Butterfield shares valued by reference to Butterfield’s 10-day NYSE VWAP of $55.66 as of May 27, 2026, for an aggregate purchase price of $1,794 million, or $1.14 per CIBC Caribbean share. Under the terms of the agreement, which have been unanimously approved by the Board of Directors of Butterfield, Butterfield will acquire CIBC Investments (Cayman) Limited, the holding company for CIBC’s 91.7% interest in CIBC Caribbean. Butterfield will subsequently commence a mandatory take-over bid for the remaining 8.3% of total outstanding shares of CIBC Caribbean held by minority shareholders, with the objective of acquiring full ownership of CIBC Caribbean, subject to applicable law and regulatory requirements. CIBC Caribbean’s minority shareholders will be offered equivalent economic terms as CIBC, and will also have the option to elect to receive up to 100% of their consideration in Butterfield shares, providing them with the opportunity to maintain the entirety of their investment in the combined organization, should they choose to do so. Houlihan Lokey, acting as financial advisor to the Special Committee of CIBC Caribbean’s Board of Directors, has provided an opinion to the Special Committee with respect to the fairness from a financial point of view of the consideration to be offered to CIBC Caribbean’s minority shareholders in the mandatory take-over bid. Assuming minority shareholders elect the same mix of cash and shares as CIBC, following completion of the take-over bid they would collectively own approximately 2% of Butterfield. In connection with the transaction, Butterfield has obtained commitments for $700 million of Tier 2 capital-qualifying subordinated debt financing expected to be raised prior to closing. Following completion of the transaction, the combined company is expected to maintain capital levels significantly above applicable regulatory thresholds on a consolidated basis, with a pro forma Common Equity Tier 1 (CET1) ratio above 12%, and total capital above 19% at closing. The transaction is expected to close in the first half of 2027, subject to receipt of Butterfield shareholder and regulatory approvals and the satisfaction of customary closing conditions. Following the transaction, Butterfield’s ordinary shares will continue to be listed on the New York Stock Exchange (NYSE) and the Bermuda Stock Exchange (BSX), and Butterfield intends to undertake additional secondary share listings on the Barbados Stock Exchange (BSE), the Bahamas International Securities Exchange (BISX), and the Trinidad & Tobago Stock Exchange (TTSE), subject to local listing and regulatory requirements. Following completion of the transaction, CIBC will own an approximately 22% stake in the combined entity. Under the terms of Butterfield and CIBC’s shareholder agreement, CIBC will then initially have the right to appoint two directors to Butterfield’s Board. The shareholder agreement will also provide for certain lockup restrictions with respect to CIBC’s stake in Butterfield, and include customary standstill obligations and registration rights. The Bermuda Monetary Authority (BMA) will continue to serve as the consolidated regulatory supervisor of Butterfield across all of its locations. Butterfield will also collaborate with all relevant jurisdictional authorities to ensure continuity, market confidence, and access to high-quality financial services within each jurisdiction. Financial Highlights Total purchase price of $1,794 million, or $1.14 per CIBC Caribbean share, representing 106% of CIBC Caribbean’s tangible book value as of January 31, 2026 Consideration is 61% cash ($1,091 million) and 39% ($703 million) Butterfield shares Consideration per CIBC Caribbean share of $0.6918 in cash and 0.008008 in Butterfield shares based on the 10-day NYSE VWAP of $55.66 as of May 27, 2026 Butterfield has obtained commitments for $700 million of Tier 2 capital-qualifying subordinated debt financing Pro forma Common Equity Tier 1 (CET1) ratio above 12%, and total capital above 19% at closing 12% expected accretion to GAAP EPS in year 1 with fully phased-in synergies, excluding integration costs 15% expected accretion to cash EPS in year 1 with fully phased-in synergies, excluding integration costs, rate marks and transaction-related amortization 10% expected accretion to Butterfield’s tangible book value per share Internal rate of return of 20%+ Pre-tax cost savings expected to reach an annual run rate of approximately $49 million once fully phased in by 2030 Advisors Barclays is serving as lead financial advisor to Butterfield, and Sullivan & Cromwell, Carey Olsen and Lex Caribbean are serving as legal advisors. BofA Securities is serving as financial advisor to Butterfield’s Board of Directors. H/Advisors is serving as communications advisor to Butterfield. Wachtell, Lipton, Rosen & Katz, Torys LLP and Chancery Chambers are serving as legal advisors to CIBC. CIBC Capital Markets is serving as financial advisor to CIBC Caribbean, and Mayer Brown LLP is serving as legal advisor. Houlihan Lokey is serving as financial advisor to the Special Committee of CIBC Caribbean’s Board of Directors. Finer Points Consultants is serving as communications advisor to CIBC Caribbean. Investor Call Butterfield will host a conference call for investors and analysts on Thursday, May 28, 2026 at 8:15 a.m. Eastern Time to discuss the transaction. Dial-in information: +1 (844) 855 9501 (toll-free US) or +1 (412) 858 4603 (international)
Conference ID: Butterfield Group Live audio webcast: A live audio webcast of the call can be accessed via Butterfield’s investor relations page on Butterfield’s website at https://www.butterfieldgroup.com/investor-relations/events-presentations Replay: An audio replay of the call will be available at https://www.butterfieldgroup.com/investor-relations/events-presentations Website You can also learn more about today’s announcement at https://www.butterfieldgroup.com/future Forward-Looking Statements Certain of the statements made in this press release are forward-looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts and include statements with respect to, among other things, our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, statements regarding the proposed acquisition of CIBC Caribbean by Butterfield; the expected timing, structure, terms and completion of the proposed transaction; the expected form and mix of consideration, including the issuance of Butterfield ordinary shares; any acquisition of shares from minority shareholders of CIBC Caribbean or related compulsory acquisition, squeeze-out or similar process; the expected ownership, governance, management, capital, regulatory and operating profile of Butterfield following the proposed transaction; the expected financing of the proposed transaction, including the amount, terms and timing of the proposed subordinated debt financing; and the anticipated benefits of the proposed transaction, including expected scale, diversification, cost savings, synergies, earnings accretion, tangible book value per share accretion, capital generation, regulatory capital ratios, risk-weighted assets, liquidity, deposit mix, market position and other financial and operating impacts. Forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond Butterfield’s control, which may cause the actual results, performance, capital, ownership, financial condition or achievements of Butterfield to be materially different from future results, performance, capital, ownership, financial condition or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Butterfield’s ability to successfully complete the proposed acquisition of CIBC Caribbean on the anticipated terms or timeline or at all; Butterfield’s ability to realize the anticipated benefits of the proposed transaction in the expected timeframes or at all, including cost savings, synergies, capital and balance sheet optimization initiatives, earnings accretion, and tangible book value per share accretion; Butterfield’s ability to successfully integrate CIBC Caribbean’s businesses, operations, systems, controls, compliance programs, risk management framework, personnel and culture into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the failure of any of the conditions to the proposed transaction to be satisfied or waived; the failure to obtain required shareholder, regulatory, governmental, securities exchange, exchange-control or other approvals, or delays in obtaining such approvals; the risk that such approvals may result in the imposition of conditions, restrictions or requirements that could adversely affect Butterfield, CIBC Caribbean or the expected benefits of the proposed transaction potentially materially or that any proposed conditions, restrictions or requirements or other actions of regulatory or governmental bodies or securities exchanges could delay or prevent the closing of the proposed transactions; the risk that any minority shareholder offer, compulsory acquisition, squeeze-out or similar process is delayed, not completed or completed on different terms than expected; revenues following the proposed transaction being lower than expected; operating costs, customer loss and business disruption, including difficulties in maintaining relationships with employees, customers, clients, depositors, vendors, suppliers, regulators and other business partners, being greater than expected; risks associated with the disruption of management’s attention from Butterfield’s ongoing business operations due to the proposed transaction; reputational risks and potential adverse reactions to the announcement, pendency or completion of the proposed transaction; the outcome of any legal, regulatory or shareholder proceedings, inquiries or investigations that may be instituted or arise in connection with the proposed transaction; the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected transaction, integration, restructuring, financing, litigation, regulatory, tax, accounting or other costs; dilution caused by the issuance of additional Butterfield ordinary shares in connection with the proposed transaction; changes in Butterfield’s share price, interest rates, foreign exchange rates, capital markets or other market conditions that may affect the transaction financing or expected financial impacts of the proposed transaction; the risk that any subordinated debt or other transaction financing is not obtained on the expected terms, timing or at all; and the risk that assumptions underlying pro forma financial information, purchase accounting, credit marks, fair value marks, integration costs, cost savings, synergies, capital ratios, earnings accretion, tangible book value per share accretion, return metrics and other financial impacts prove to be inaccurate. Other factors that may impact Butterfield’s future results, performance, financial condition or achievements include worldwide and regional economic conditions, including economic growth and general business conditions in Bermuda, the Cayman Islands, Barbados, The Bahamas, Turks and Caicos, Trinidad and Tobago, the broader Atlantic, Caribbean and other markets in which Butterfield or CIBC Caribbean operates; fluctuations in interest rates, inflation, monetary policy, foreign exchange rates, capital markets, tourism, real estate markets and sovereign credit ratings, including a decline in Bermuda’s sovereign credit rating; any sudden liquidity crisis; changes in customer behavior, including customer borrowing, repayment, investment and deposit practices; unfavorable developments concerning asset quality, credit quality, loan losses, non-performing loans, collateral values, loan concentrations, sovereign exposures, residential mortgage risk weighting, reserves, funding costs, liquidity and deposit flows; competitive product and pricing pressures; security risks, including cybersecurity, data privacy, fraud, financial crime, anti-money laundering and sanctions risks; the impact, extent and timing of technological changes, systems conversions and operational resilience initiatives; risks relating to the success of Butterfield’s updated systems and platforms; capital management activities; changes in laws, regulations, accounting standards, tax laws, regulatory capital or liquidity requirements and supervisory expectations; potential impacts of climate change, hurricanes and other natural disasters; compliance with regulatory requirements; and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements. All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Annual Report on Form 20-F and in any subsequent reports furnished or filed with the Securities and Exchange Commission ("SEC"). Such reports are available upon request from Butterfield, or from the SEC including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. About Butterfield: Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com. About CIBC Caribbean: CIBC Caribbean is a relationship bank offering a full range of market leading financial services through our Corporate Banking, Personal and Business Banking and Private Wealth segments. CIBC Caribbean is located in ten (10) countries around the Caribbean, providing banking services through approximately 2,700 employees in 41 branches and offices. CIBC Caribbean also has a representative office in Hong Kong that provides business development and relationship management for its fund administration business. About CIBC: CIBC is a leading North American financial institution with 15 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. BF-All View source version on businesswire.com: https://www.businesswire.com/news/home/20260528619464/en/ Investor Relations Contact:
Noah Fields
Investor Relations
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 299 3816
E-mail: noah.fields@butterfieldgroup.com Media Relations Contact:
Nicky Stevens
Group Strategic Marketing & Communications
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 299 1624
E-mail: nicky.stevens@butterfieldgroup.com CIBC Caribbean:
Debra King
Director of Corporate Communications
CIBC Caribbean, Barbados Head Office
E-mail: debra.king@cibccaribbean.com Original: Butterfield Announces Agreement to Acquire Control of CIBC Caribbean in $1.8 Billion Transaction

Butterfield Reports First Quarter 2026 ResultsApril 28, 2026 4:30 PM
Business Wire
First quarter 2026 highlights:



Net income of $62.6 million, or $1.53 per share



Core net income1 of $63.2 million, or $1.55 per share



Return on average common equity of 22.1% and core return on average tangible common equity1 of 24.1%



Net interest margin of 2.75%, cost of deposits of 1.24%



Quarterly cash dividend of $0.50 per share for the quarter ended March 31, 2026



Repurchases of 0.8 million shares at a total cost of $42.4 million



Closed previously announced acquisition of Rawlinson & Hunter Guernsey on April 15, 2026



The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (BSX: NTB.BH; NYSE: NTB) today announced financial results for the quarter ended March 31, 2026.


Net income for the first quarter of 2026 was $62.6 million, or $1.53 per diluted common share, compared to net income of $63.8 million, or $1.54 per diluted common share, for the previous quarter and $53.8 million, or $1.23 per diluted common share, for the first quarter of 2025. Core net income1 for the first quarter of 2026 was $63.2 million, or $1.55 per diluted common share, compared to $63.8 million, or $1.54 per diluted common share, for the previous quarter and $56.7 million, or $1.30 per diluted common share, for the first quarter of 2025.


The return on average common equity for the first quarter of 2026 was 22.1% compared to 22.7% for the previous quarter and 20.9% for the first quarter of 2025. The core return on average tangible common equity1 for the first quarter of 2026 was 24.1%, compared to 24.6% for the previous quarter and 24.2% for the first quarter of 2025. The efficiency ratio for the first quarter of 2026 was 56.8%, compared to 57.2% for the previous quarter and 61.8% for the first quarter of 2025. The core efficiency ratio1 for the first quarter of 2026 was 56.4% compared with 57.2% in the previous quarter and 59.8% for the first quarter of 2025.


Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, “The first quarter of 2026 was a solid start to the year, with strong financial performance, as well as continuing our M&A driven growth with the acquisition of Rawlinson & Hunter in Guernsey. During the first quarter, we saw sustained demand for our services across banking, wealth management and trust. Net interest income benefited from lower deposit costs, as well as stable deposit volumes in all of our jurisdictions. The reduction in non-interest expenses demonstrates our operational efficiency, particularly during periods of falling interest rates and market volatility.


“Following our announcement of the Rawlinson & Hunter Guernsey acquisition in February, the integration planning has proceeded well and I am pleased to report that the transaction has now successfully closed. We expect our growing private trust business to benefit from its increased scale in Guernsey and further position Butterfield as a leader in the international private trust world with total assets under administration of $146 billion. Acquisitions remain core to Butterfield’s growth strategy, and we continue to target island banks and trust businesses that we believe will add long-term value for shareholders.”


Net income and core net income1 were down in the first quarter of 2026 versus the seasonally high prior quarter, primarily due to lower non-interest income from banking services and higher provision for credit losses, which were partially offset by lower non-interest expenses.


Net interest income (“NII”) for the first quarter of 2026 was $93.3 million, higher compared to $92.6 million in the previous quarter and $4.0 million higher compared to $89.3 million in the first quarter of 2025. NII was higher during the first quarter of 2026 compared to the prior quarter due to a lower cost of deposits following the reduction of market interest rates by central banks and partially offset by lower loan and treasury yields, coupled with lower day count. NII was higher during the first quarter of 2026 compared to the first quarter of 2025 due to a lower cost of deposits due to the aforementioned reduction in market interest rates, increased investment yields with assets deployed into higher yielding available-for-sale investment securities and the redemption of subordinated debt in the second quarter of 2025, and which was partially offset by lower loan and treasury yields.


Net interest margin (“NIM”) for the first quarter of 2026 was 2.75%, an increase of 6 basis points from the previous quarter at 2.69% and compared favorably to 2.70% in the first quarter of 2025. NIM in the first quarter of 2026 increased compared to the prior quarter and the first quarter of 2025 due to a lower cost of deposits and higher investment yields, partially offset by lower treasury and loan yields as central banks decreased market interest rates.


Non-interest income for the first quarter of 2026 was $62.6 million, a decrease of $3.6 million from $66.3 million in the previous quarter and $4.2 million higher than the $58.4 million in the first quarter of 2025. The decrease in the first quarter of 2026 compared to the prior quarter was due to lower banking revenue due to strong fourth quarter seasonality. Non-interest income in the first quarter of 2026 was higher than the first quarter of 2025 due to higher trust revenue from new clients and fee increases and higher banking revenue due to increased credit card volumes.


Non-interest expenses were $90.5 million in the first quarter of 2026, compared to $93.1 million in the previous quarter and $93.2 million in the first quarter of 2025. Core non-interest expenses1 of $89.9 million in the first quarter of 2026 were lower compared to the $93.1 million incurred in the previous quarter and the $90.3 million in the first quarter of 2025. Core non-interest expenses1 in the first quarter of 2026 were lower compared to the prior quarter due to decreased professional and outside services and technology and communications costs. Core non-interest expenses1 in the first quarter of 2026 were lower compared to the first quarter of 2025 due to decreased property, technology and communications and professional and outside services costs, partially offset by higher salaries and benefits.


Period end deposit balances were higher at $12.9 billion compared to December 31, 2025. Average deposits were $12.8 billion in the quarter ended March 31, 2026, which is relatively flat compared to the prior quarter.


Tangible book value per share1 at the end of the first quarter of 2026 was $26.56 per share, slightly higher than $26.41 per share at the end of the prior quarter. The tangible book value per share1 continues to improve due to OCI burndown and retained earnings, net of dividends.


The Board declared a quarterly cash dividend of $0.50 per common share to be paid on May 27, 2026 to shareholders of record on May 13, 2026. During the first quarter of 2026, Butterfield also repurchased 0.8 million common shares under the Bank's existing share repurchase program.


The current total regulatory capital ratio as at March 31, 2026 was 26.9%, compared to 27.8% as at December 31, 2025. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank.


ANALYSIS AND DISCUSSION OF FIRST QUARTER RESULTS




Income statement






 






Three months ended (Unaudited)








(in $ millions)






 






March 31, 2026






 






December 31, 2025






 






March 31, 2025








Non-interest income






 






62.6






 






 






66.3






 






 






58.4






 








Net interest income before provision for credit losses






 






93.3






 






 






92.6






 






 






89.3






 








Total net revenue before provision for credit losses and other gains (losses)






 






155.9






 






 






158.9






 






 






147.8






 








Provision for credit (losses) recoveries






 






(1.4






)






 






0.2






 






 






0.4






 








Total net revenue






 






154.5






 






 






159.1






 






 






148.2






 








Non-interest expenses






 






(90.5






)






 






(93.1






)






 






(93.2






)








Total net income before taxes






 






64.0






 






 






66.0






 






 






54.9






 








Income tax benefit (expense)






 






(1.4






)






 






(2.2






)






 






(1.2






)








Net income






 






62.6






 






 






63.8






 






 






53.8






 








 






 






 






 






 






 






 








Net earnings per share






 






 






 






 






 






 








Basic






 






1.57






 






 






1.58






 






 






1.26






 








Diluted






 






1.53






 






 






1.54






 






 






1.23






 








 






 






 






 






 






 






 








Per diluted share impact of other non-core items 1






 






0.02






 






 






—






 






 






0.07






 








Core earnings per share on a fully diluted basis 1






 






1.55






 






 






1.54






 






 






1.30






 








 






 






 






 






 






 






 








Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares)






 






40,881






 






 






41,439






 






 






43,592






 








 






 






 






 






 






 






 








Key financial ratios






 






 






 






 






 






 








Return on common equity






 






22.1






%






 






22.7






%






 






20.9






%








Core return on average tangible common equity 1






 






24.1






%






 






24.6






%






 






24.2






%








Return on average assets






 






1.8






%






 






1.8






%






 






1.6






%








Net interest margin






 






2.75






%






 






2.69






%






 






2.70






%








Core efficiency ratio 1






 






56.4






%






 






57.2






%






 






59.8






%








(1) See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.









Balance Sheet






 






As at








(in $ millions)






 






March 31, 2026






 






December 31, 2025








Cash and cash equivalents






 






1,942






 






 






1,709






 








Securities purchased under agreements to resell






 






1,018






 






 






1,096






 








Short-term investments






 






912






 






 






757






 








Investments in securities






 






5,676






 






 






5,688






 








Loans, net of allowance for credit losses






 






4,394






 






 






4,382






 








Premises, equipment and computer software, net






 






161






 






 






159






 








Goodwill and intangibles, net






 






84






 






 






87






 








Accrued interest and other assets






 






238






 






 






217






 








Total assets






 






14,425






 






 






14,095






 








 






 






 






 






 








Total deposits






 






12,882






 






 






12,698






 








Securities sold under agreements to repurchase






 






132






 






 






—






 








Accrued interest and other liabilities






 






274






 






 






255






 








Total liabilities






 






13,289






 






 






12,953






 








Common shareholders’ equity






 






1,136






 






 






1,142






 








Total shareholders' equity






 






1,136






 






 






1,142






 








Total liabilities and shareholders' equity






 






14,425






 






 






14,095






 








 






 






 






 






 








Key Balance Sheet Ratios:






 






March 31, 2026






 






December 31, 2025








Common equity tier 1 capital ratio






 






26.8






%






 






27.6






%








Tier 1 capital ratio






 






26.8






%






 






27.6






%








Total capital ratio






 






26.9






%






 






27.8






%








Leverage ratio






 






7.5






%






 






7.6






%








Risk-Weighted Assets (in $ millions)






 






4,139






 






 






3,991






 








Risk-Weighted Assets / total assets






 






28.7






%






 






28.3






%








Tangible common equity ratio






 






7.3






%






 






7.5






%








Book value per common share (in $)






 






28.68






 






 






28.58






 








Tangible book value per share (in $)






 






26.56






 






 






26.41






 








Non-accrual loans/gross loans






 






2.0






%






 






2.1






%








Non-performing assets/total assets






 






1.2






%






 






0.8






%








Allowance for credit losses/total loans






 






0.6






%






 






0.6






%







QUARTER ENDED MARCH 31, 2026 COMPARED WITH THE QUARTER ENDED DECEMBER 31, 2025


Net Income


Net income for the quarter ended March 31, 2026 was $62.6 million, down from $63.8 million in the prior quarter.


The change in net income during the quarter ended March 31, 2026 compared to the previous quarter is attributable to the following:



$3.6 million decrease in non-interest income driven by (i) $3.5 million decrease in banking fees due to prior period seasonality and (ii) $0.9 million decrease in trust revenue driven by reduced time-based and special fees, partially offset by (iii) $0.9 million increase in foreign exchange fees driven by volume;



$1.6 million increase in allowance for credit losses due to an increased provision on a legacy Bermuda commercial facility and partially offset by the release of a provision on a residential mortgage facility in the Channel Islands and UK segment;



$2.6 million decrease in non-interest expenses mainly due to (i) $0.8 million decrease in professional and outside services for project work; (ii) $1.2 million decrease in technology and communication costs; (iii) $0.8 million decrease in property cost expenses and (iv) $0.6 million decrease in non-employee benefit costs, partially offset by (v) $1.5 million increase in payroll taxes related to the annual vesting of share compensation; and



$0.8 million decrease in income tax expenses mainly due to lower taxable income in the Channel Islands and UK segment.



Non-Core Items1


Non-core items resulted in expenses, net of gains, of $0.6 million for the first quarter of 2026. Non-core items for the quarter are comprised principally of acquisition-related expenses.


Management does not believe that comparative period expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business.




(1) See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.







BALANCE SHEET COMMENTARY AT MARCH 31, 2026 COMPARED WITH DECEMBER 31, 2025


Total Assets


Total assets of the Bank were $14.4 billion at March 31, 2026, an increase of $0.3 billion from December 31, 2025. The Bank maintained a highly liquid position at March 31, 2026, with $9.5 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 66.2% of total assets, compared with 65.6% at December 31, 2025.


Loans Receivable


The loan portfolio totaled $4.4 billion at March 31, 2026, relatively flat compared to December 31, 2025.


The allowance for credit losses at March 31, 2026 totaled $26.3 million, an increase compared to $25.4 million at December 31, 2025.


The loan portfolio represented 30.5% of total assets at March 31, 2026 (December 31, 2025: 31.1%), while loans as a percentage of total deposits was 34.1% at March 31, 2026 (December 31, 2025: 34.5%). Both ratios remain relatively stable at March 31, 2026 compared to December 31, 2025.


As at March 31, 2026, the Bank had gross non-accrual loans of $90.2 million, representing 2.0% of total gross loans, a decrease of $1.2 million from $91.3 million, or 2.1% of total loans, at December 31, 2025. The decrease in non-accrual loans was driven by a few residential mortgage facilities migrating back to accrual status.


Investment in Securities


The investment portfolio was $5.7 billion at March 31, 2026, which remains relatively stable compared to December 31, 2025 balances.


The investment portfolio is made up of high-quality assets with 100% invested in A-or-better-rated securities. The investment book yield was 2.78% during the quarter ended March 31, 2026 compared with 2.72% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio increased to $99.7 million, compared with total net unrealized losses of $89.4 million at December 31, 2025, as a result of rising long-term US dollar interest rates.


Deposits


Average total deposit balances were $12.8 billion for the quarter ended March 31, 2026, which is relatively flat compared to December 31, 2025. Period end balances as at March 31, 2026 were $12.9 billion, higher compared to $12.7 billion in December 31, 2025.


Average Balance Sheet2




 






For the three months ended








 






March 31, 2026






 






December 31, 2025






 






March 31, 2025








(in $ millions)






Average




balance




($)






Interest




($)






Average




rate




(%)






 






Average




balance




($)






Interest




($)






Average




rate




(%)






 






Average




balance




($)






Interest




($)






Average




rate




(%)








Assets






 






 






 






 






 






 






 






 






 






 






 








Cash and cash equivalents and short-term investments






      3,646.1






 






         30.1






 






3.35






 






 






      3,588.7






 






         31.1






 






3.44






 






 






      3,519.3






 






         34.5






 






3.98






 








Investment in securities






5,714.1






 






39.2






 






2.78






 






 






5,686.1






 






39.0






 






2.72






 






 






5,462.6






 






36.1






 






2.68






 








Available-for-sale






2,742.0






 






22.3






 






3.31






 






 






2,657.1






 






21.9






 






3.27






 






 






2,247.5






 






17.8






 






3.21






 








Held-to-maturity






2,972.1






 






16.8






 






2.30






 






 






3,029.0






 






17.1






 






2.24






 






 






3,215.1






 






18.3






 






2.31






 








Loans






4,399.8






 






63.4






 






5.84






 






 






4,396.3






 






66.6






 






6.01






 






 






4,455.3






 






69.4






 






6.32






 








Commercial






1,171.2






 






16.6






 






5.75






 






 






1,188.6






 






18.3






 






6.11






 






 






1,320.3






 






20.6






 






6.32









Consumer






3,228.6






 






46.8






 






5.88






 






 






3,207.7






 






48.3






 






5.98






 






 






3,135.0






 






48.8






 






6.32






 








Interest earning assets






13,760.0






 






132.7






 






3.91






 






 






13,671.1






 






136.8






 






3.97






 






 






13,437.3






 






140.0






 






4.23






 








Other assets






455.9






 






 






 






 






444.9






 






 






 






 






430.7






 






 






 








Total assets






14,215.8






 






 






 






 






14,116.0






 






 






 






 






13,868.0






 






 






 








Liabilities






 






 






 






 






 






 






 






 






 






 






 








Deposits - interest bearing






10,143.9






 






(39.3






)






(1.57






)






 






10,125.1






 






(44.1






)






(1.73






)






 






9,853.4






 






(49.1






)






(2.02






)








Securities sold under agreements to repurchase






6.6






 






(0.1






)






(3.99






)






 






1.2






 






—






 






(4.53






)






 






16.3






 






(0.2






)






(4.42






)








Long-term debt






—






 






—






 






—






 






 






—






 






—






 






—






 






 






98.7






 






(1.4






)






(5.63






)








Interest bearing liabilities






10,150.5






 






(39.4






)






(1.57






)






 






10,126.3






 






(44.2






)






(1.73






)






 






9,968.5






 






(50.7






)






(2.06






)








Non-interest bearing current accounts






2,684.5






 






 






 






 






2,645.9






 






 






 






 






2,622.4






 






 






 








Other liabilities






249.5






 






 






 






 






238.2






 






 






 






 






263.6






 






 






 








Total liabilities






13,084.5






 






 






 






 






13,010.3






 






 






 






 






12,854.4






 






 






 








Shareholders’ equity






1,131.4






 






 






 






 






1,105.6






 






 






 






 






1,013.5






 






 






 








Total liabilities and shareholders’ equity






14,215.8






 






 






 






 






14,116.0






 






 






 






 






13,868.0






 






 






 








Non-interest bearing funds net of non-interest earning assets (free balance)






3,609.5






 






 






 






 






3,544.8






 






 






 






 






3,468.8






 






 






 








Net interest margin






 






93.3






 






2.75






 






 






 






92.6






 






2.69






 






 






 






89.3






 






2.70






 








(2) Averages are based upon daily averages for the periods indicated.







Assets Under Administration and Assets Under Management


Total assets under administration for the trust and custody businesses were $137.4 billion and $31.8 billion, respectively, at March 31, 2026, while assets under management were $6.8 billion at March 31, 2026. This compares with $134.7 billion, $32.3 billion and $6.9 billion, respectively, at December 31, 2025.


Reconciliation of US GAAP Results to Core Earnings


The table below shows the reconciliation of net income in accordance with US GAAP to core earnings, a non-GAAP measure, which excludes certain significant items that are included in our US GAAP results of operations. We focus on core net income, which we calculate by adjusting net income to exclude certain income or expense items that are not representative of our business operations, or “non-core”. Core net income includes revenue, gains, losses and expense items incurred in the normal course of business. We believe that expressing earnings and certain other financial measures excluding these non-core items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Bank and predicting future performance. We believe that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as management.




Core Earnings






Three months ended








(in $ millions except per share amounts)






March 31, 2026






 






December 31, 2025






 






March 31, 2025








Net income






62.6






 






 






63.8






 






 






53.8






 








Non-core items






 






 






 






 






 








Non-core expenses






 






 






 






 






 








Early retirement program, voluntary separation, redundancies and other non-core compensation costs






—






 






 






—






 






 






2.9






 








Business acquisition costs






0.6






 






 






—






 






 






—






 








Total non-core expenses






0.6






 






 






—






 






 






2.9






 








Total non-core items






0.6






 






 






—






 






 






2.9






 








Core net income






63.2






 






 






63.8






 






 






56.7






 








 






 






 






 






 






 








Average common equity






1,148.0






 






 






1,117.3






 






 






1,041.3






 








Less: average goodwill and intangible assets






(86.0






)






 






(87.2






)






 






(89.2






)








Average tangible common equity






1,062.0






 






 






1,030.1






 






 






952.1






 








Core earnings per share fully diluted






1.55






 






 






1.54






 






 






1.30






 








Return on common equity






22.1






%






 






22.7






%






 






20.9






%








Core return on average tangible common equity






24.1






%






 






24.6






%






 






24.2






%








 






 






 






 






 






 








Shareholders' equity






1,136.1






 






 






1,141.9






 






 






1,057.8






 








Less: goodwill and intangible assets






(83.9






)






 






(86.8






)






 






(89.7






)








Tangible common equity






1,052.2






 






 






1,055.1






 






 






968.1






 








Basic participating shares outstanding (in millions)






39.6






 






 






39.9






 






 






42.2






 








Tangible book value per common share






26.56






 






 






26.41






 






 






22.94






 








 






 






 






 






 






 








Non-interest expenses






90.5






 






 






93.1






 






 






93.2






 








Less: non-core expenses






(0.6






)






 






—






 






 






(2.9






)








Less: amortization of intangibles






(2.0






)






 






(2.2






)






 






(1.9






)








Core non-interest expenses before amortization of intangibles






88.0






 






 






90.9






 






 






88.4






 








Core revenue before other gains and losses and provision for credit losses






155.9






 






 






158.9






 






 






147.8






 








Core efficiency ratio






56.4






%






 






57.2






%






 






59.8 






% 







Conference Call Information:


Butterfield will host a conference call to discuss the Bank’s results on Wednesday, April 29, 2026 at 10:00 a.m. Eastern Time. Callers may access the conference call by dialing +1 (844) 855-9501 (toll-free) or +1 (412) 858-4603 (international) ten minutes prior to the start of the call and referencing the Conference ID: Butterfield Group. A live webcast of the conference call, including a slide presentation, will be available in the investor relations section of Butterfield’s website at www.butterfieldgroup.com. A replay of the call will be archived on the Butterfield website for 12 months.


About Non-GAAP Financial Measures:


Certain statements in this release involve the use of non-GAAP financial measures. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with US GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with US GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See "Reconciliation of US GAAP Results to Core Earnings" for additional information.


Forward-Looking Statements:


Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, our intention to, identify and enter into acquisitions or other strategic transactions and the timing and anticipated benefits thereof (including with respect to the acquisition of R&H Guernsey), and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. These risks and uncertainties may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including Butterfield’s ability to realize the anticipated benefits of the acquisition of R&H Guernsey in the expected time-frames or at all; Butterfield’s ability to successfully integrate R&H Guernsey’s operations into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the risk that revenues following the acquisition of R&H Guernsey may be lower than expected; the risk that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the acquisition; risks associated with the disruption of management’s attention from ongoing business operations due to the acquisition; and the outcome of any legal proceedings that may be instituted against Butterfield or R&H Guernsey. Other factors that may impact Butterfield’s future results, performance or achievements include worldwide economic conditions (including economic growth and general business conditions) and fluctuations of interest rates, inflation, a decline in Bermuda’s sovereign credit rating, any sudden liquidity crisis, the successful entry into, completion and integration of acquisitions or the realization of the anticipated benefits of such acquisitions, success in business retention (including the retention of relationships associated with our acquisition of R&H Guernsey), potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements.


All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data.


Presentation of Financial Information:


Certain monetary amounts, percentages and other figures included in this release have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.


About Butterfield:


Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.


BF-All

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428798884/en/
Investor Relations Contact:

Noah Fields

Investor Relations

The Bank of N.T. Butterfield & Son Limited

Phone: (441) 299 3816

E-mail: noah.fields@butterfieldgroup.com


Media Relations Contact:

Nicky Stevens

Group Strategic Marketing & Communications

The Bank of N.T. Butterfield & Son Limited

Phone: (441) 299 1624

E-mail: nicky.stevens@butterfieldgroup.com


Original: Butterfield Reports First Quarter 2026 Results