Fourth Quarter and Year-End 2024 The Bank of N.T. Butterfield & Son Limited Earnings Presentation February 11, 2025 Forward-Looking Statements 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 perfor ...

The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Q4 2024 Earnings Conference Call February 11, 2025 10:00 AM ET Company Participants Noah Fields - Vice President of Investor Relations Michael Collins - Chairman and Chief Executive Officer Craig Bridgewater - Group Chief Financial Officer Michael Schrum - President and Group Chief Risk Officer Conference Call Participants David Feaster - Raymond James Timur Braziler - Wells Fargo Securities Tim Switzer - KBW Operator Good morning. My name is Michael, an ...

Core Viewpoint - Bank of NT Butterfield & Son reported strong quarterly earnings, exceeding expectations and showing growth compared to the previous year [1][2]. Financial Performance - The company reported earnings of $1.34 per share, surpassing the Zacks Consensus Estimate of $1.08 per share, and up from $1.15 per share a year ago, representing an earnings surprise of 24.07% [1]. - Revenues for the quarter ended December 2024 were $151.9 million, exceeding the Zacks Consensus Estimate by 8.42%, and up from $146.9 million year-over-year [2]. Market Performance - Bank of NT Butterfield & Son shares have increased approximately 3.9% since the beginning of the year, outperforming the S&P 500's gain of 2.5% [3]. Future Outlook - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.91 for the next quarter and $3.90 for the current fiscal year [7]. - The Zacks Rank for the stock is currently 3 (Hold), indicating expected performance in line with the market in the near future [6]. Industry Context - The Banks - Foreign industry, to which the company belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Data and Key Metrics Changes - The bank reported net income of $52.7 million and core net income of $52.8 million for Q3 2024, with core earnings per share at $1.16 and a core return on average tangible common equity of 22.5% [5][6] - The net interest margin decreased by three basis points to 2.61%, while the cost of deposits rose by two basis points to 191 basis points [5][6] - The board approved a quarterly cash dividend of $0.44 per share and repurchased 1 million shares at an average price of $37 per share [5][6] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses was $88.1 million, benefiting from increased average interest-earning assets, despite elevated deposit costs [6][7] - Non-interest income totaled $56 million, a modest increase due to higher card volume, loan repayment fees, and asset management income [7][8] - Core non-interest expenses decreased by 1.8% to $88.6 million, primarily due to lower professional services costs [8] Market Data and Key Metrics Changes - Average interest-earning assets increased by $114 million, or 0.9%, to $13.4 billion, driven by higher average deposits [7] - Period-end deposit balances rose to $12.7 billion from $12.5 billion in the prior quarter, reflecting the diversified nature of the bank's markets [10] - The bank's loan asset quality remains adequate, with a net charge-off rate of three basis points and nonaccrual loans at 1.9% of gross loans [11] Company Strategy and Development Direction - The bank aims to grow through M&A and organic business development, focusing on enhancing efficiency and managing expenses as interest rates decline [13] - The bank's capital-efficient fee businesses are tailored to meet the needs of its island-based clientele, with a focus on maintaining a strong balance sheet and liquidity levels [13] - The bank is strategically positioned to profitably grow and support shareholder value while managing risks associated with its operations [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the deposit balances have held up better than expected, with some deposits still considered at risk of leaving the bank [15][16] - The bank expects some credit migration but remains conservative in underwriting standards, with a focus on managing existing loans and collateral [19][20] - Management expressed confidence in the housing market across its jurisdictions, citing a shortage of supply and steady demand [21] Other Important Information - The bank's capital levels remain conservatively above regulatory requirements, with tangible book value per share increasing by 9.3% to $21.90 [12] - The bank continues to see good results from its trust business, particularly in Singapore, where it has become a top 5 trust company [25][36] Q&A Session Summary Question: Update on deposit dynamics and core deposit growth - Management acknowledged that while some deposits are at risk of leaving, they have seen success in core deposit growth, particularly in the Channel Islands [15][17] Question: Credit quality and housing market outlook - Management indicated that while there is some credit migration, they expect it to normalize, and the housing market remains strong across their jurisdictions [19][21] Question: Deposit cost and margin dynamics - Management noted a slowdown in the increase of deposit costs and expects overall deposit costs to continue on a downward trajectory [27][29] Question: Capital allocation and M&A environment - Management stated that dividends and share buybacks are prioritized, with ongoing discussions about potential acquisitions, but nothing immediate is on the horizon [31][32] Question: Future expense outlook - Management expects expenses to remain similar in Q4, with ongoing pressures from inflation and investments in technology [37][39]

| --- | --- | --- | |------------------------------------------------|-------|-------| | Third Quarter 2024 | | | | The Bank of N.T. Butterfield & Son | | | | Limited Earnings Presentation October 23, 2024 | | | Forward-Looking Statements 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, obje ...

Bank of NT Butterfield & Son (NTB) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.45%. A quarter ago, it was expected that this community bank would post earnings of $1.03 per share when it actually produced earnings of $1.11, delivering a surprise of 7.77%.Over the last four quart ...

The market expects Bank of NT Butterfield & Son (NTB) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 22, 2024, might help the stock move higher if t ...

CAPITAL & RISK MANAGEMENT PILLAR 3 DISCLOSURES FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2024 THE BANK OF N.T. BUTTERFIELD & SON LIMITED BUTTERFIELD Capital and Risk Management Pillar 3 Disclosures for the six-month period ended June 30, 2024 Contents Page 1. Overview 3 1.1. Background 1.2. Basis of disclosures 1.3. Scope of applications 1.4. Location and verification 2. Risk Management Objectives and Policies 5 2.1. Risk governance 2.2. Risk management 3. Prudential Metrics 7 4. Capital Adequacy 9 4.1. Capit ...

The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Q2 2024 Results Earnings Conference Call July 23, 2024 10:00 AM ET Company Participants Noah Fields - Vice President of Investor Relations Michael Collins - Chairman and Chief Executive Officer Craig Bridgewater - Group Chief Financial Officer Michael Schrum - President and Group Chief Risk Officer Conference Call Participants David Feaster - Raymond James Tim Switzer - Keefe, Bruyette & Woods Operator Good morning. My name is Nick and I will be your con ...

Non-Interest Income & Expense Trends (in millions of US Dollars, unless otherwise indicated) | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------|-------|-----------|-------|-------|-------|-----------|-------|-------|-------|-------|-------|-----------|-------| | | | 2024 \nQ2 | Q1 | | Q4 | 2023 \nQ3 | | Q2 | Q1 | | Q4 | 2022 \nQ3 | Q2 | | Non-Interest Income | | | | | | | | | | | | | | | Asset Management | | $ 8.9 | $ 8.8 | | $ 8.3 | $ 8.0 | $ 8.2 | | $ 7.9 | ...