NTB

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2026 investor letter.  A copy of the letter can be downloaded here. The Fund returned 27.02% in the first half of 2026, outperforming the Russell 2000 Value Index’s 22.99% gain and the S&P 600 Index’s 23.90% return. Small-cap earnings growth also began accelerating relative to large caps, while the small-cap technology sector surged nearly 100% in 26H1. The fund’s technology holdings gained 72.39%, contributing 14.87 percentage points, compared with a 95.27% return and 7.10-point contribution from the benchmark’s technology sector. Excluding IT and cash, the Fund contributed 12.73% versus 15.89% for the Russell 2000 Value Index; on a fully invested basis, the figures were 16.62% and 17.59%, respectively. The portfolio continued to trim appreciated technology holdings amid the AI-driven rally, while maintaining a bottom-up approach and avoiding beaten-down SaaS stocks due to the widening range of AI-related outcomes. The fund also eliminated about $62 million in capital gains during Q2 and approximately $140 million year-to-date through July, while ending the quarter with 10.2% in cash. In addition, please check the Fund’s top five holdings to know its best picks in 2026. In its second-quarter 2026 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like The Bank of N.T. Butterfield & Son (NYSE:NTB). The Bank of N.T. Butterfield & Son (NYSE:NTB) operates as a Bermuda-based bank providing banking and wealth-management services across select international markets. The one-month return of The Bank of N.T. Butterfield & Son (NYSE:NTB) was -5.20% while its shares traded between $40.59 and $64.17 over the last 52 weeks. On August 28, 2026, The Bank of N.T. Butterfield & Son (NYSE:NTB) stock closed at approximately $59.30 per share, with a market capitalization of about $2.32 billion. FPA Queens Road Small Cap Value Fund stated the following regarding The Bank of N.T. Butterfield & Son (NYSE:NTB) in its Q2 2026 investor letter: The Bank of N.T. Butterfield & Son (NYSE:NTB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 27 hedge fund portfolios held The Bank of N.T. Butterfield & Son (NYSE:NTB) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of The Bank of N.T. Butterfield & Son (NYSE:NTB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered The Bank of N.T. Butterfield & Son (NYSE:NTB) and shared the company's earnings call transcript. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. This article is originally published at Insider Monkey.

Butterfield Bank’s second quarter results were driven by continued growth in both interest-earning assets and fee-based revenue, reflecting steady operational execution and balanced risk management. Management highlighted the benefits of integrating the recently acquired R&H Currency business, which contributed to higher trust revenues and helped diversify non-interest income. CEO Michael Weld Collins emphasized the bank’s strong presence in Bermuda and the Cayman Islands, as well as its expanding retail operations in the Channel Islands. The quarter also marked a pause in share repurchases as Butterfield prioritizes capital allocation for pending acquisitions and organic growth initiatives. The market reaction was largely neutral, suggesting results were broadly in line with investor expectations. Is now the time to buy NTB? Find out in our full research report (it’s free). Revenue: $159 million vs analyst estimates of $157 million (8.6% year-on-year growth, 1.3% beat) Adjusted EPS: $1.58 vs analyst estimates of $1.51 (4.9% beat) Market Capitalization: $2.41 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. David Feaster (Raymond James): asked about Butterfield’s ability to maintain stable deposit costs amid competitive pressures. CFO Michael L. Schrum responded that deposit gathering remains a focus and temporary deposits are expected to flow out eventually, but cost management has been effective so far. David Feaster (Raymond James): inquired about potential product gaps or upgrades required post-CIBC Caribbean acquisition. CEO Michael Weld Collins explained that the combined platform will offer a broader suite of services, with further improvements expected in online banking and wealth management. David Feaster (Raymond James): questioned asset quality and mortgage market health, particularly in the Channel Islands and UK. Chief Risk Officer Bri Hidalgo noted that softening in these markets is being monitored, but low loan-to-value ratios provide resilience. Emily (KBW): requested an update on the regulatory and integration process for CIBC Caribbean, and opportunities in new jurisdictions. Hidalgo and Schrum described positive feedback from local teams and robust credit and underwriting standards in the new markets. Emily (KBW): asked about capital deployment and the timing for potential resumption of share buybacks. Schrum said buybacks are paused for now, with capital building prioritized ahead of closing, and future resumption possible once capital ratios reach targeted levels. Looking ahead, the StockStory team will be monitoring (1) the pace of regulatory approvals and integration milestones tied to the CIBC Caribbean acquisition, (2) Butterfield’s ability to sustain margin discipline despite rising deposit costs and integration-related expenses, and (3) trends in asset quality, especially in residential mortgage portfolios in the Channel Islands and UK. The success of new product offerings and progress in expanding wealth management capabilities will also be important signposts. Butterfield Bank currently trades at $61.29, in line with $60.71 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Net Income: $46.9 million. Core Net Income: $63.9 million. Core Earnings Per Share: $1.58. Core Return on Average Tangible Common Equity: 25%. Net Interest Margin: 2.74%. Quarterly Cash Dividend: $0.50 per share. Net Interest Income: $95.6 million. Non-Interest Income: $63.4 million. Core Non-Interest Expenses: $92.9 million. Core Efficiency Ratio: 57%. Total Assets: $14.3 billion. Loan Portfolio: $4.4 billion. Investment Portfolio: $5.7 billion. Deposits: $12.9 billion at period-end. Allowance for Credit Losses: $27.8 million. Net Unrealized Losses on Available for Sale Securities: $106.7 million. Quarterly Dividend: $0.50 per share. Warning! GuruFocus has detected 11 Warning Signs with NUE. Is NTB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank of N.T Butterfield & Son Ltd (NYSE:NTB) reported a strong net income of $46.9 million and core net income of $63.9 million for the second quarter of 2026. The bank maintained a high core return on average tangible common equity of 25% in the second quarter. The integration of R&H currency is progressing smoothly, showcasing the bank's ability to effectively integrate acquisitions. The announced acquisition of CIBC Caribbean is expected to significantly expand NTB's scale and regional footprint, enhancing its ability to serve customers. NTB's asset quality remains strong, with a conservative loan portfolio and high-quality investment holdings, underscoring the bank's low-risk profile. The net interest margin decreased slightly by one basis point to 2.74% in the second quarter, indicating pressure on interest income. Core non-interest expenses increased by 3.3% from the prior quarter, primarily due to new expenses from the recently acquired R&H Guernsey business. There was a modest increase in non-accrual loans to $96 million, primarily driven by residential real estate exposures in the Channel Islands and UK segment. The bank paused share repurchases following the announcement of the CIBC Caribbean acquisition, which may impact shareholder returns in the near term. Net unrealized losses on available-for-sale securities increased to $106.7 million, reflecting potential challenges in the investment portfolio. Q: Can you provide insights on the deposit landscape and how you plan to manage deposit costs in the near term? A: Michael Collins, CEO, explained that the bank has been successful in managing deposit costs and maintaining client expectations. While temporary deposits are still present, the bank anticipates they will eventually flow out. The FX movements, particularly from Sterling, could impact deposit levels, but the bank remains focused on deposit gathering and managing costs effectively. Q: Are there any products or services that need to be upgraded or added following the CIBC Caribbean acquisition? A: Michael Collins, CEO, noted that the combined company will have a broad array of products, including strong digital and online banking services. There is potential for growth in wealth management services. The acquisition will also enhance corporate offerings, although some activities like equity options trading may need reevaluation. Q: How is the housing market performing, and what is the status of your residential mortgage book? A: Bri Hidalgo, Chief Risk Officer, stated that the UK market is being closely monitored due to some softening, but the portfolio has low loan-to-value ratios, providing a buffer. Michael Schrum, CFO, added that the Bermuda market is vibrant, and the Channel Islands are seeing growth in retail banking without branches. Q: What are the dynamics and opportunities in the new jurisdictions following the CIBC Caribbean acquisition? A: Bri Hidalgo, Chief Risk Officer, highlighted positive regulatory interactions and robust credit books in Barbados and the Bahamas. Michael Schrum, CFO, mentioned that Barbados is pivoting towards retail residential, and the Bahamas is experiencing significant tourism growth, providing substantial market share opportunities. Q: What are your plans for capital deployment post-CIBC acquisition, and when might buybacks resume? A: Michael Collins, CEO, indicated that the focus will be on organic growth, with buybacks likely on pause until the total capital ratio returns to the low 20% range. The bank is preparing for financing in the subordinate debt market and aims to reflect the combined entity's ROE back to shareholders through dividends or buybacks once in a comfortable capital position. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Bank of N.T. Butterfield & Son Limited (The)? Here are five stocks we like better. Strong Q2 performance: Butterfield reported $46.9 million in net income, $63.9 million in core net income and core EPS of $1.58, while approving a $0.50 quarterly dividend. Net interest income and non-interest income both increased, and management expects margins to remain broadly stable through 2026. Balance sheet growth with monitored credit risks: Total assets rose to $14.3 billion and deposits reached $12.9 billion, while net charge-offs remained near zero. Non-accrual loans increased to 2.2% of gross loans, primarily due to residential real estate exposures in the Channel Islands and the U.K. CIBC Caribbean acquisition remains on track: The transaction is expected to close in the first half of 2027, subject to regulatory and shareholder approvals, and would create a combined company with approximately $29 billion in assets. Butterfield has paused share repurchases while it evaluates financing, integration and capital needs. Bank of N.T. Butterfield & Son (NYSE:NTB) reported second-quarter 2026 net income of $46.9 million and core net income of $63.9 million, as the offshore banking and wealth management company cited growth in interest-earning assets, stable margins and continued progress on acquisitions. Core earnings per share were $1.58, while core return on average tangible common equity was 25% for the quarter, Chairman and Chief Executive Officer Michael Collins said during the company’s earnings call. Butterfield also approved a quarterly cash dividend of $0.50 per share. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “Butterfield’s second quarter performance demonstrated the strength of our franchise, the value of deep customer relationships, and the disciplined execution of our strategy,” Collins said. Net interest income before provisions for credit losses totaled $95.6 million, up $2.3 million from the first quarter and $6.2 million from the second quarter of 2025. President and Chief Financial Officer Michael Schrum said the increase reflected growth in interest-earning asset volumes and an additional day in the quarter compared with the prior period. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Net interest margin was 2.74%, down one basis point sequentially, as deposit costs increased by one basis point to 125 basis points. Schrum said management expects margin to remain broadly stable with a slight positive bias through the remainder of 2026, supported by ongoing asset repricing. Non-interest income rose $700,000 from the prior quarter to $63.4 million. The increase was primarily driven by higher trust revenue associated with onboarding activity from the R&H Guernsey acquisition. Lower foreign-exchange revenue, stemming from reduced transaction volumes, and lower banking fees partly offset the gain. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Butterfield’s fee income ratio was 40%, which Schrum said underscored the diversity of the company’s revenue base. Core non-interest expenses increased 3.3% sequentially to $92.9 million, reflecting costs from R&H Guernsey as well as higher salaries, technology, property expenses and intangible-asset amortization. Management expects quarterly core expenses of $93 million to $95 million until the anticipated closing of the CIBC Caribbean acquisition in the first half of 2027. Butterfield’s core efficiency ratio was 57%, compared with 56.4% in the prior quarter and below management’s through-cycle target of 60%. Total assets increased 2% from year-end 2025 to $14.3 billion. Short-term investments accounted for most of the growth, while loans rose modestly to $4.4 billion and the investment portfolio remained largely unchanged at $5.7 billion. Period-end deposits increased to $12.9 billion from $12.7 billion at year-end, while average deposits reached $13.1 billion. Schrum said temporary deposits remained on the balance sheet, contributing to elevated cash and short-term securities balances because the bank does not treat those deposits as long-term funding. The company’s non-accrual loans increased to $96 million, or 2.2% of gross loans, from 2.0% in the first quarter. Chief Risk Officer Bri Hidalgo attributed the increase primarily to residential real estate exposures in the Channel Islands and the United Kingdom segment. Hidalgo said Butterfield is closely monitoring the U.K. market, where conditions have softened, but noted that the affected portfolios carry low loan-to-value ratios. Nearly 79% of the bank’s residential mortgages had loan-to-value ratios below 70%, according to Schrum. The allowance for credit losses was unchanged at $27.8 million, or 0.6% of total loans, and the net charge-off ratio remained effectively zero. Schrum said Bermuda’s property market remained vibrant, with multiple offers and growing activity tied to new international businesses. Cayman’s market has cooled somewhat but remains active, he said. Butterfield’s Channel Islands retail operation had approximately £650 million in deposits and a £350 million mortgage book, with management describing deposits there as stickier than initially expected. Butterfield paused share repurchases on May 28 after announcing its agreement to acquire CIBC Caribbean. The company repurchased 300,000 shares during the second quarter before the pause. Collins said repurchases will likely remain paused or be reduced as the company evaluates growth opportunities and rebuilds capital organically. Hidalgo said the CIBC Caribbean transaction remains on schedule for a first-half 2027 close, subject to regulatory, governance, financing and stakeholder approvals. Near-term work includes regulatory licensing applications, pro forma financial statements, board approval and shareholder approval at the company’s annual general meeting in mid-September. Management said it has received positive feedback from initial regulatory and local stakeholder meetings in Barbados and the Bahamas. Hidalgo added that CIBC Caribbean’s credit book and underwriting standards have continued to perform in line with expectations. The combined company is expected to have approximately $29 billion in assets, $25 billion in deposits, $1.7 billion in tangible common equity and more than $400 million in run-rate earnings, Collins said. The transaction would add operations across nine new international financial centers, including Barbados and the Bahamas. Schrum said Butterfield expects to pursue financing in the subordinated debt market, likely in the fourth quarter following the shareholder vote. Over the medium term, management expects capital priorities to return to a framework that may include dividends and eventual share repurchases once capital levels are in a “20 plus” range. Butterfield also said the integration of R&H Guernsey is progressing smoothly. Collins said the company is already seeing benefits from combining complementary capabilities while maintaining client service levels. Bank of N.T. Butterfield & Son Limited, commonly known as Butterfield, is a Bermuda-based provider of banking and wealth management services. Founded in 1858, the firm has grown from a local colonial bank into an international financial institution. With a focus on personalized client service, Butterfield offers a comprehensive suite of banking and fiduciary solutions to private individuals, families, and corporate clients. The bank's core activities include private banking, retail and commercial lending, trust and corporate administration, and fund services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bank of N.T. Butterfield & Son Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 25% core return on average tangible common equity, driven by the strength of offshore franchise market shares in Bermuda and the Cayman Islands. Net interest income grew to $95.6 million, supported by asset volume growth and continued asset repricing despite a slight 1 basis point increase in deposit costs. The fee-based revenue stream remains resilient at a 40% income ratio, bolstered by the successful onboarding of trust clients from the R&H Guernsey acquisition. Maintained a conservative balance sheet with a low risk density of 27.9% and a loan portfolio heavily weighted toward full-recourse residential mortgages. Operating efficiency remains a priority, with a core efficiency ratio of 57% staying comfortably below the management's through-cycle target of 60%. Strategic focus has shifted toward the integration of CIBC Caribbean, which is expected to significantly expand the bank's regional footprint and scale. Management expects net interest margin to remain broadly stable with a slight positive bias for the remainder of the year due to ongoing asset repricing. The core expense run rate is projected to stay between $93 million and $95 million per quarter until the CIBC Caribbean transaction closes. Unrealized losses in the investment portfolio are expected to improve by approximately 20% over the next 12 months as securities mature and reinvest at current rates. The CIBC Caribbean acquisition is on track for a first-half 2027 close, with key milestones including a shareholder vote in mid-September 2026. Capital management will prioritize organic capital building and potential subordinated debt financing in Q4 2026 to support the pending acquisition. Share repurchases were paused on May 28, 2026, to preserve capital for the CIBC Caribbean acquisition and organic growth opportunities. Non-accrual loans saw a modest increase to 2.2% of gross loans, primarily driven by softening in the UK and Channel Islands residential real estate markets. The bank is evaluating the impact of a new incoming corporate income tax regime on its future capital structure and leverage strategies. Management identified 'temporary' deposits that have remained on the balance sheet longer than expected, though they are not yet behavioralized for long-term planning. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while 'temporary' deposits have persisted longer than anticipated, future rate outlooks may lead to more difficult pricing conversations. The bank maintains elevated cash and short-term security levels because they do not yet treat these temporary inflows as core, sticky deposits. The combined entity will gain enhanced digital banking tools and corporate products, including limited investment banking capabilities that Butterfield currently lacks. Management identified significant opportunities to scale the wealth management and trust businesses across an expanded presence of 9 new key international financial centers. Bermuda's housing market is described as very vibrant with strong price discovery, while the Cayman Islands market is cooling slightly but remains active. The UK market is showing signs of softening, which drove the slight uptick in non-accruals, but low loan-to-value ratios provide significant loss protection. Buybacks will likely remain on pause or at scaled-back levels until the total capital ratio returns to the low 20% range post-acquisition. Management intends to eventually return to a capital deployment strategy that reflects the high ROE of the combined entity through dividends or repurchases.

Second quarter 2026 highlights: Net income of $46.9 million, or $1.16 per share Core net income1 of $63.9 million, or $1.58 per share Return on average common equity of 16.6% and core return on average tangible common equity1 of 25.0% Net interest margin of 2.74%, cost of deposits of 1.25% Quarterly cash dividend of $0.50 per share for the quarter ended June 30, 2026 Repurchases of 0.3 million shares at a total cost of $16.1 million Closed acquisition of R&H Guernsey with integration activities underway Entered into an agreement to acquire CIBC Caribbean with expected close in the first half of 2027 HAMILTON, Bermuda, July 27, 2026--(BUSINESS WIRE)--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 June 30, 2026. Net income for the second quarter of 2026 was $46.9 million, or $1.16 per diluted common share, compared to net income of $62.6 million, or $1.53 per diluted common share, for the previous quarter and $53.3 million, or $1.25 per diluted common share, for the second quarter of 2025. Core net income1 for the second quarter of 2026 was $63.9 million, or $1.58 per diluted common share, compared to $63.2 million, or $1.55 per diluted common share, for the previous quarter and $53.7 million, or $1.26 per diluted common share, for the second quarter of 2025. The return on average common equity for the second quarter of 2026 was 16.6% compared to 22.1% for the previous quarter and 20.3% for the second quarter of 2025. The core return on average tangible common equity1 for the second quarter of 2026 was 25.0%, compared to 24.1% for the previous quarter and 22.3% for the second quarter of 2025. The efficiency ratio for the second quarter of 2026 was 67.6%, compared to 56.8% for the previous quarter and 61.3% for the second quarter of 2025. The core efficiency ratio1 for the second quarter of 2026 was 57.0% compared with 56.4% in the previous quarter and 61.1% for the second quarter of 2025. Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, "Our second quarter results reflect the continued strength of our core banking franchise. Core net income improved from the first quarter, supported by higher net interest income and the initial contribution of trust fees from our acquisition of Rawlinson & Hunter Guernsey. The net interest margin remained stable, while deposit costs were well managed despite the competitive operating environment. "During the quarter, we announced the acquisition of CIBC Caribbean, a compelling opportunity that we expect will double our size and strengthen Butterfield's position as a leading independent financial services provider across the Caribbean and international financial centers. We have already completed our initial regulatory filings across the relevant jurisdictions and continue to expect closing to occur in the first half of 2027, adding scale and new growth opportunities for Butterfield. We look forward to serving our new island communities with the same commitment we have brought to clients across Bermuda, Cayman, Guernsey, and Jersey, building on a heritage that began with our founding in Bermuda in 1858. "I am pleased with the strong underlying core performance of our business. We remain focused on serving our clients, maintaining our disciplined approach to risk management and capital allocation, and executing on the opportunities before us. The combination of resilient core earnings, a strong balance sheet, and the addition of the R&H Guernsey business positions us well to create long-term value for our shareholders." The reported net income for the second quarter of 2026 included $16.9 million of non-core, deal-related expenses, primarily associated with the acquisition of CIBC Caribbean and, to a lesser extent, integration-related costs for the R&H Guernsey business. Core net income1 was up in the second quarter of 2026 compared to the prior quarter due to higher net interest income ("NII"), new trust income from R&H Guernsey and other gains from the sale of collateral, partially offset by higher core non-interest expenses. NII for the second quarter of 2026 was $95.6 million, an increase compared to $93.3 million in the previous quarter and $6.2 million higher than $89.4 million in the second quarter of 2025. NII increased during the second quarter of 2026 compared to the prior quarter due to higher day count and growth in interest-earning asset volumes, partially offset by higher deposit costs associated with increased funding volumes. NII was higher during the second quarter of 2026 compared to the second quarter of 2025 due to lower cost of deposits following a 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, partially offset by lower loan and treasury yields. Net interest margin ("NIM") for the second quarter of 2026 was 2.74%, a decrease of 1 basis point from the previous quarter and compared favorably to 2.64% in the second quarter of 2025. NIM in the second quarter of 2026 remained relatively stable compared with the prior quarter. NIM in the second quarter of 2026 increased compared to the second quarter of 2025 due to 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 second quarter of 2026 was $63.4 million, an increase of $0.7 million from $62.6 million in the previous quarter and $6.3 million higher than the $57.0 million in the second quarter of 2025. The increase in the second quarter of 2026 compared to the prior quarter resulted from new trust revenue from the R&H Guernsey acquisition, partially offset by lower foreign exchange revenue due to decreased volume and lower banking fees. Non-interest income in the second quarter of 2026 was higher than the second quarter of 2025 due to higher trust revenue from the new R&H Guernsey business, higher foreign exchange revenue due to increased volume, higher banking fees due to credit card volume and timing of the incentive program, higher asset management fees from increased valuations and higher custody fees from additional business. Non-interest expenses were $109.8 million in the second quarter of 2026, compared to $90.5 million in the previous quarter and $91.8 million in the second quarter of 2025, primarily attributable to acquisition-related, non-core expenses associated with CIBC Caribbean and R&H Guernsey. Core non-interest expenses1 of $92.9 million in the second quarter of 2026 were higher compared to the $89.9 million incurred in the previous quarter and the $91.4 million in the second quarter of 2025. Excluding the additional expenses associated with the R&H Guernsey business, core non-interest expenses1 in the second quarter of 2026 increased compared with the prior quarter, primarily driven by higher salaries and benefits, as well as technology and communications costs. Relative to the second quarter of 2025, core non-interest expenses1, excluding the incremental costs of the R&H Guernsey business, were lower, mainly reflecting reduced property-related expenses. Approximately $1.9 million of the quarter-over-quarter increase in core expenses during the quarter was attributable to the integration of the R&H Guernsey business. Period end deposit balances were higher at $12.9 billion compared to December 31, 2025. Average deposits were $13.1 billion in the quarter ended June 30, 2026, an increase from the prior quarter. Tangible book value per share1 at the end of the second quarter of 2026 was $26.19 per share, slightly lower than $26.56 per share at the end of the prior quarter. The tangible book value per share1 decreased this quarter due to the recognition of goodwill and intangibles associated with the R&H Guernsey business. The Board declared a quarterly cash dividend of $0.50 per common share to be paid on August 26, 2026 to shareholders of record on August 12, 2026. During the second quarter of 2026, Butterfield repurchased 0.3 million common shares under the Bank's existing share repurchase program. The program was paused following the May 28, 2026 announcement of Butterfield's agreement to buy CIBC Caribbean from CIBC. The current total regulatory capital ratio as at June 30, 2026 was 27.5%, compared to 27.8% as at December 31, 2025. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank. QUARTER ENDED JUNE 30, 2026 COMPARED WITH THE QUARTER ENDED MARCH 31, 2026 Net Income Net income for the quarter ended June 30, 2026 was $46.9 million, down from $62.6 million in the prior quarter. The change in net income during the quarter ended June 30, 2026 compared to the previous quarter is attributable to the following: $2.3 million increase in net interest income driven by a higher day count and growth in interest-earning asset volumes, partially offset by higher deposit costs associated with increased funding volumes; $1.0 million increase in total gains (losses) due to the sale of collateral securing a loan that was carried at a nil value upon acquisition; $0.7 million increase in non-interest income driven by (i) $2.5 million increase in trust revenue attributable to the recent R&H Guernsey acquisition; partially offset by (ii) $1.3 million decrease in foreign exchange fees driven by lower transaction volumes; and (iii) $0.4 million decrease in banking fees; and $19.3 million increase in non-interest expenses mainly due to (i) $16.9 million of business acquisition-related costs; (ii) $2.2 million increase in salaries and benefits driven by headcount growth associated with the R&H Guernsey acquisition and prior quarter adjustments to performance-based incentive accruals; (iii) $0.8 million increase in technology and communication costs; partially offset by (iv) $1.5 million decrease in payroll taxes related to the annual vesting of share compensation recorded in the prior quarter. Non-Core Items1 Non-core items resulted in expenses, net of gains, of $16.9 million for the second 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. BALANCE SHEET COMMENTARY AT JUNE 30, 2026 COMPARED WITH DECEMBER 31, 2025 Total Assets Total assets of the Bank were $14.3 billion at June 30, 2026, an increase of $0.3 billion from December 31, 2025. The Bank maintained a highly liquid position at June 30, 2026, with $9.4 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 65.5% of total assets, compared with 65.6% at December 31, 2025. Loans Receivable The loan portfolio totaled $4.4 billion at June 30, 2026, relatively flat compared to December 31, 2025. The allowance for credit losses at June 30, 2026 totaled $27.8 million, an increase of $2.3 million compared to $25.4 million at December 31, 2025. The increase was driven by a net increase in provisioned non-accrual loans. The loan portfolio represented 30.7% of total assets at June 30, 2026 (December 31, 2025: 31.1%), while loans as a percentage of total deposits was 34.1% at June 30, 2026 (December 31, 2025: 34.5%). Both ratios remain relatively stable at June 30, 2026 compared to December 31, 2025. As at June 30, 2026, the Bank had gross non-accrual loans of $96.0 million, representing 2.2% of total gross loans, an increase of $4.7 million from $91.3 million, or 2.1% of total loans, at December 31, 2025. The increase in non-accrual loans was driven by a well-secured residential mortgage facility in the Channel Islands & UK segment, with the impact partially offset by the repayment of a separate facility within the same segment. Investment in Securities The investment portfolio was $5.7 billion at June 30, 2026, which remains relatively flat compared to December 31, 2025 balances. The investment portfolio is made up of high-quality assets with 100% invested in AA-or-better-rated securities. The investment book yield was 2.78% during the quarter ended June 30, 2026 compared with 2.78% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio increased to $106.7 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 $13.1 billion for the quarter ended June 30, 2026, which is higher compared to the quarter ended December 31, 2025. Period end balances as at June 30, 2026 were $12.9 billion, higher compared to $12.7 billion in December 31, 2025. Assets Under Administration and Assets Under Management Total assets under administration for the trust and custody businesses were $147.3 billion and $31.8 billion, respectively, at June 30, 2026, while assets under management were $6.9 billion at June 30, 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 also present certain other non-GAAP financial measures, including tangible common equity and related tangible equity measures. We believe that these non-GAAP financial measures provide 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. Conference Call Information:Butterfield will host a conference call to discuss the Bank’s results on Tuesday, July 28, 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:This release contains non-GAAP financial measures, including core net income and other financial measures presented on a core basis and tangible common equity and related tangible equity 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, and subject to the protections of, Section 27A of the Securities Act of 1933, 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 Bank of N.T. Butterfield & Son Limited ("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, balance sheet and capital 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 materially adversely affect Butterfield, CIBC Caribbean or the expected benefits of the proposed transaction, 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 release are expressly qualified in their entirety by this cautionary notice, including, without limitation, the risks and uncertainties described in our reports and filings, including under the caption "Risk Factors" in our most recent 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 based only on information currently available and speaks only as of the date on which it is 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 release, 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 release. 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. Our principal banking operations are located in Bermuda, the Cayman Islands, Guernsey and Jersey, providing deposit, cash management and lending solutions for individual, business and institutional clients. We provide a full range of wealth management services, comprising trust, private banking, asset management and custody, in Bermuda, the Cayman Islands and Guernsey, trust services in The Bahamas, Singapore and Switzerland, and residential property lending in the UK. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details are available at www.butterfieldgroup.com. BF-All View source version on businesswire.com: https://www.businesswire.com/news/home/20260727430309/en/ Contacts Investor Relations Contact: Noah FieldsInvestor RelationsThe Bank of N.T. Butterfield & Son LimitedPhone: (441) 299 3816E-mail: [email protected] Media Relations Contact: Emily EdwardsGroup Communications ManagerThe Bank of N.T. Butterfield & Son LimitedPhone: (441) 299 1624E-mail: [email protected]

Bank of NT Butterfield & Son (NTB) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $1.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.64%. A quarter ago, it was expected that this community bank would post earnings of $1.4 per share when it actually produced earnings of $1.55, delivering a surprise of +10.71%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Bank of NT Butterfield & Son, which belongs to the Zacks Banks - Foreign industry, posted revenues of $158.96 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.25%. This compares to year-ago revenues of $146.42 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bank of NT Butterfield & Son shares have added about 22.4% since the beginning of the year versus the S&P 500's gain of 8.3%. While Bank of NT Butterfield & Son has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bank of NT Butterfield & Son was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $158.4 million in revenues for the coming quarter and $6.10 on $631.9 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Foreign is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Royal Bank (RY), is yet to report results for the quarter ended July 2026. This bank is expected to post quarterly earnings of $2.87 per share in its upcoming report, which represents a year-over-year change of +2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Royal Bank's revenues are expected to be $12.9 billion, up 4.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of N.T. Butterfield & Son Limited (The) (NTB) : Free Stock Analysis Report Royal Bank Of Canada (RY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research