NTB · The Bank of N.T. Butterfield & Son Limited

Butterfield delivered solid Q1 2026 results with net income of $62.6 million, slightly below the prior quarter's $63.8 million due to lower non-interest income from seasonal banking fees and a $1.6 million provision for credit losses on a legacy Bermuda facility, offset by $2.6 million lower non-interest expenses from reduced professional services, technology costs, and property expenses. Core net income of $63.2 million reflects minimal non-core acquisition expenses of $0.6 million. NII rose to $93.3 million with NIM expanding 6 bps to 2.75%, driven by lower deposit costs (1.24%) amid central bank rate cuts and higher investment yields, despite softer loan yields and day count. Non-interest income declined $3.6 million QoQ on banking seasonality and lower trust fees, though up YoY from new clients and fee hikes. Efficiency improved with core ratio at 56.4% versus 57.2% prior quarter, beating the 60% target. Balance sheet grew to $14.4 billion, with deposits at $12.9 billion and loans stable at $4.4 billion; asset quality steady with non-accruals at 2.0% and ACL at 0.6%. Capital remains robust at 26.9% total ratio. Management highlighted sustained service demand, operational efficiency in falling rate environment, and M&A growth via the closed Rawlinson & Hunter Guernsey deal, boosting private trust scale to $146 billion AUA. Strong capital returns include $0.50/share dividend (up from $0.44 YoY) and 0.8 million shares repurchased for $42.4 million, supporting TBVPS growth to $26.56.