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

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

The Bank of N.T. Butterfield & Son Limited (NTB) Financial Services Profile

The Bank of N.T. Butterfield & Son Limited, with a $2.38B market cap, offers community, commercial, and private banking services, primarily in offshore financial centers. Its diversified financial services, including wealth management and trust services, and a 31.8% profit margin, position it uniquely within the global banking sector.

What Is the Investment Thesis for NTB?

The Bank of N.T. With a profit margin of 31.8% and a dividend yield of 3.44%, NTB demonstrates financial stability and shareholder value. The company's beta of 0.49 suggests lower volatility compared to the broader market. Growth catalysts include expansion within existing markets and potential acquisitions to broaden its service offerings. However, investors may want to evaluate potential risks such as regulatory changes in offshore jurisdictions and increased competition from global financial institutions. The company's ability to maintain its competitive advantages in wealth management and trust services will be crucial for long-term success.

Based on FMP financials and quantitative analysis

NTB Key Highlights

Market capitalization of $2.38B, reflecting substantial investor confidence.

• P/E ratio of 10.35, suggesting a potentially undervalued stock relative to earnings.
• Profit margin of 31.8%, indicating strong operational efficiency and profitability.
• Gross margin of 80.9%, highlighting the company's ability to manage costs effectively.
• Dividend yield of 3.44%, providing a steady income stream for investors.

Who Are NTB's Competitors?

NTB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are NTB's Key Strengths?

Strong profitability with a 31.8% profit margin.

• High gross margin of 80.9%.
• Strategic presence in offshore financial centers.
• Diversified revenue streams.

What Are NTB's Weaknesses?

Limited geographic diversification beyond offshore markets.

• Potential vulnerability to regulatory changes in offshore jurisdictions.
• Smaller scale compared to global financial institutions.
• Reliance on specific niche markets.

What Could Drive NTB Stock Higher?

Expansion of wealth management services targeting high-net-worth individuals.

• Digital transformation initiatives to enhance customer experience and operational efficiency.
• Potential strategic acquisitions to expand geographic footprint and service capabilities.
• Cross-selling opportunities to leverage existing customer relationships.
• Growth in sustainable investing and development of ESG-focused products.

What Are the Key Risks for NTB?

Financial-distress signal — its Altman Z-Score of 0.93 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $14.6M recently.
• Increased competition from global financial institutions.
• Regulatory changes in offshore jurisdictions impacting operations.
• Economic downturns affecting key markets and loan performance.
• Cybersecurity risks and potential data breaches.
• Fluctuations in interest rates affecting profitability.

What Are the Growth Opportunities for NTB?

• Butterfield can capitalize on this growth by expanding its wealth management offerings, targeting high-net-worth individuals and families in its key markets. This includes offering personalized investment solutions, estate planning, and fiduciary services. Success hinges on attracting and retaining experienced wealth management professionals and leveraging technology to enhance client service.
• Strategic Acquisitions: Butterfield can pursue strategic acquisitions to expand its geographic footprint and service capabilities. Targeting smaller banks or wealth management firms in complementary markets can provide access to new clients and expertise. Careful due diligence and integration are crucial to ensure successful acquisitions. The timeline for potential acquisitions is ongoing, with opportunities arising as market conditions evolve.
• Digital Transformation: Investing in digital technologies can enhance customer experience, improve operational efficiency, and drive revenue growth. This includes developing mobile banking apps, online platforms, and data analytics capabilities. The digital banking market is expected to grow significantly in the coming years, and Butterfield needs to stay ahead of the curve to remain competitive. The timeline for digital transformation is ongoing, with continuous investment and innovation required.
• Cross-Selling Opportunities: Butterfield can leverage its existing customer relationships to cross-sell a wider range of products and services. This includes offering wealth management services to banking clients and vice versa. Effective cross-selling requires training employees, implementing targeted marketing campaigns, and providing seamless customer service. The timeline for realizing cross-selling opportunities is immediate and ongoing, with continuous efforts to identify and capitalize on synergies.
• Expansion in Sustainable Investing: The demand for sustainable investing is growing rapidly, with investors increasingly seeking to align their investments with environmental, social, and governance (ESG) factors. Butterfield can develop and offer sustainable investment products to attract this growing segment of investors. This includes incorporating ESG criteria into investment decisions, offering green bonds, and supporting sustainable development initiatives. The timeline for expanding in sustainable investing is medium-term, with increasing demand expected in the coming years.

What Are NTB's Competitive Advantages?

• Strong brand reputation and long-standing history in key markets.
• Strategic presence in offshore financial centers.
• Diversified revenue streams across banking, wealth management, and trust services.
• High gross margin of 80.9% indicates pricing power and efficient operations.

What Does NTB Do?

The Bank of N.T. Butterfield & Son Limited, founded in 1858 in Hamilton, Bermuda, has evolved from a local bank into a global provider of banking and wealth management services. Initially serving the needs of the local community, Butterfield has expanded its operations to include a wide range of financial solutions tailored to individuals and small to medium-sized businesses. The company's core offerings encompass community banking, commercial banking, and private banking services. These include deposit accounts, lending solutions (residential mortgages, auto loans, commercial real estate), investment products, and cash management services. Butterfield distinguishes itself through its presence in key offshore financial centers, including the Cayman Islands, Guernsey, Jersey, Switzerland, Singapore, and The Bahamas. This strategic positioning allows it to cater to a diverse international clientele seeking specialized financial services, such as trust, estate, and company management. The bank operates a network of branches and offices across these jurisdictions, providing localized service and expertise. Butterfield's commitment to technology is evident in its offering of mobile and internet banking services, as well as debit cards and automated teller machines. The bank's ability to blend traditional banking services with modern technology has enabled it to maintain a competitive edge in a rapidly evolving financial landscape. With a workforce of 1295 employees, Butterfield continues to uphold its reputation for stability and reliability in the global financial arena.

What Products and Services Does NTB Offer?

• Provides community banking services to individuals and small businesses.
• Offers commercial banking services to medium-sized businesses and corporations.
• Delivers private banking and wealth management services to high-net-worth individuals.
• Provides residential mortgage lending, automobile lending, and consumer financing.
• Offers credit cards, overdraft facilities, and commercial real estate lending.
• Provides cash and liquidity management, foreign exchange, and custody administration services.
• Offers trust, estate, and company management services.
• Provides personal and property/auto insurance products.

How Does NTB Make Money?

• Generates revenue from interest income on loans and mortgages.
• Earns fees from wealth management, trust, and custody services.
• Collects service charges on deposit accounts and other banking products.
• Profits from foreign exchange transactions and other financial services.

What Industry Does NTB Operate In?

The Bank of N.T. Butterfield & Son Limited operates within the diversified banking industry, which is characterized by increasing regulatory scrutiny and technological disruption. The market is competitive, with institutions like Pinnacle Financial Partners, Inc. (PNFP) and Bank OZK (OZK) vying for market share. Butterfield's focus on offshore financial centers differentiates it from competitors primarily focused on domestic markets. The industry is experiencing growth in wealth management and digital banking services, driven by changing customer preferences and technological advancements.

Who Are NTB's Key Customers?

• Individuals seeking personal banking services.
• Small to medium-sized businesses requiring commercial banking solutions.
• High-net-worth individuals and families seeking wealth management.
• Corporations needing cash management and international banking services.

Company Profile

The Bank of N.T. Butterfield & Son Limited operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Hamilton, BM. The company is led by CEO Michael Collins. NTB has traded publicly since 2016.

The Bank of N.T. Butterfield & Son Limited Financial Trajectory

The Bank of N.T. Butterfield & Son Limited (NTB) reported $159.9M in revenue for Q2 FY2026, reflecting 2.6% growth compared to the prior quarter. The company recorded net income of $46.9M, with diluted EPS of $1.16. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, NTB averaged $1.42 in diluted EPS.

How The Bank of N.T. Butterfield & Son Limited Is Valued

The Bank of N.T. Butterfield & Son Limited carries a market capitalization of $2.38B, placing it in the mid-cap category. Analyst price targets span from $61.00 to $61.00, with a consensus of $61.00. At the current price of $60.05, that implies approximately 2% upside potential. Relative to its peer group, NTB's quantitative score of 94/100 is above the peer average of 65/100.

Return on equity for The Bank of N.T. Butterfield & Son Limited stands at 21.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. NTB trades at a trailing price-to-earnings ratio of 10.35, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 10.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.42 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.9%, the inverse of the P/E and a quick read on earnings relative to price.

The Bank of N.T. Butterfield & Son Limited's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.93 places it in the distress zone, a signal of elevated financial risk.

The Bank of N.T. Butterfield & Son Limited has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 11.1% above estimates on average.

Over the past six months, The Bank of N.T. Butterfield & Son Limited insiders filed 30 SEC Form 4 transactions — 6 sales and 24 purchases. On net that is roughly 153K shares disposed (about $14.6M), a signal worth weighing alongside the fundamentals.

NTB Financials

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NTB Analyst Consensus

NTB MoonshotScore

Common Questions About NTB (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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