The Bank of N.T. Butterfield & Son Limited (NTB) AI Stock Analysis

Established in 1858 and based in Hamilton, Bermuda, The Bank of N.T. Butterfield & Son Limited delivers banking products to individuals and small to medium-sized enterprises across multiple jurisdictions. Its operations encompass retail and corporate banking services, checking and savings accounts, term deposits, residential mortgages, and commercial lending. Butterfield also offers investment products, cash management, foreign exchange services, fiduciary solutions, and insurance offerings. With an international footprint in the Cayman Islands, Guernsey, the United Kingdom, and Singapore, the institution provides wealth management and advisory services alongside digital banking capabilities.

Butterfield expanded revenue at a 5-year CAGR of 9.8% from FY2020 through FY2025. Annual revenue reached $816.5M in FY2024 before decreasing 2.0% to $799.8M in FY2025. Despite the slight top-line dip, net income grew from $216.3M in FY2024 to $231.9M in FY2025, yielding an EPS of $5.61. Operating margin finished FY2025 at 29.8%. Over the trailing twelve months, revenue was $625.2M with a profit margin of 37.5%. For the latest quarter ended June 30, 2026, quarterly revenue grew 8.2% year-over-year, while quarterly earnings contracted 7.2%.

As of June 30, 2026, Butterfield held $7.97B in cash and short-term investments against $39.1M in total debt, creating a net cash position of $7.93B. Shareholders' equity was $1.15B against total assets of $14.35B, resulting in a debt-to-equity ratio of 0.03 and a current ratio of 1518.86. Operating cash flow in FY2025 was $279.6M, which supported $24.8M in capital expenditures, leaving $254.8M in free cash flow. Capital return in FY2025 included $146.7M in share buybacks and $77.7M in dividends paid.

NTB shares trade at a trailing P/E of 10.3x, which is lower than the 12.1x median of its US-listed Financial Services peers. Its price-to-sales multiple is 3.7x compared to the peer median of 3.2x, with a price-to-book ratio of 2.0x and an EV-to-revenue ratio of 1.4x. Over the past year, the stock returned 48.5%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, NTB delivered a return of 95.1% compared to 83.0% for the S&P 500.

Butterfield pays a quarterly dividend totaling an annualized forward dividend of $2.00, corresponding to a dividend yield of 3.41%. The company maintains a payout ratio of 32.4% and has paid dividends for 14 consecutive years, reflecting a 5-year annualized dividend growth rate of 1.3%. Its last ex-dividend date was August 12, 2026.

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 2 Hold ratings. The mean price target is $66.00, representing an upside of 12.5% over the last close of $58.65. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $6.30 on revenue of $639.9M. Butterfield has topped EPS estimates in all 4 of the last four quarters. The next earnings report date is scheduled for October 27, 2026.

This page is an AI-written research summary of The Bank of N.T. Butterfield & Son Limited (NTB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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