Bank Of N.t. Butterfield & Son Limited (the) Voting · NYSE:NTB
Bank Of N.t. Butterfield & Son Limited (the) Voting — Bank of N.T. Butterfield & Son Limited (The) — Q2 2026 Earnings Presentation
28 slides from Bank Of N.t. Butterfield & Son Limited (the) Voting's earnings presentation, Jul 28, 2026
Slide 1: Second Quarter 2026 Earnings Presentation
Second Quarter 2026 The Bank of N.T. Butterfield & Son Limited Earnings Presentation July 28, 2026
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Forward-Looking Statements: Certain of the statements made in this presentation 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 A
Slide 3: Important Notice and Disclaimer: Non-GAAP Financial Measures
Important Notice and Disclaimer About Non-GAAP Financial Measures This presentation contains non-GAAP financial measures, including “core” net income and other financial measures presented on a “core” basis, tangible common equity and related measures including tangible common equity to tangible ass
Slide 4: Agenda and Overview
Agenda and Overview Presenters Agenda Butterfield Overview Michael Collins • Overview • Leading Bank in Attractive Markets Chairman and Chief Executive Officer • Second Quarter 2026 Financials • Strong Capital Generation and Return Michael Schrum • CIBC Caribbean Update • Resilient, Capital Efficien
Slide 5: Financials
Financials 5
Slide 6: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights (In US$ millions) vs. Q1 2026 vs. Q2 2025 • Net income of $46.9 million, or $1.16 per share Q2 2026 $ % $ % • Core net income** of $63.9 million, or $1.58 per share Net Interest Income $ 95.6 $ 2.3 $ 6.2 • Return on average common equity of 16.6%; core return on Non-In
Slide 7: Income Statement: Net Interest Income
Income Statement Net Interest Income Net Interest Margin & Yields Net Interest Income before Provision for Credit Losses - Trend (In US$ millions) Q2 2026 vs. Q1 2026 (In US$ millions) $95.6 $93.3 Avg. Balance Yield Avg. Balance Yield $89.4 Cash, S/T Inv. & Repos $ 3,856.6 3.32 % $ 210.5 (0.03)% Inv
Slide 8: Income Statement: Non-Interest Income
Income Statement Non-Interest Income Non-Interest Income Trend (In US$ millions) (In US$ millions) Q2 2026 vs. Q1 2026 $62.6 $63.4 Asset management $ 10.3 $ (0.1) $57.0 Banking 15.9 (0.4) Foreign exchange revenue 13.3 (1.3) Trust 19.2 2.5 Custody and other 3.7 — Other 0.9 (0.1) Total Non-Interest In
Slide 9: Income Statement: Non-Interest Expenses
Income Statement Non-Interest Expenses Core Non-Interest Expenses* Trend Core Non-Interest Expenses* vs. Q1 2026 (In US$ millions) (In US$ millions) Q2 2026 $ % $91.4 $89.9 $92.9 Salaries & Benefits** $ 48.3 $ 2.2 4.7 % Technology & Comm. 16.2 0.8 5.2 % Professional & O/S Services 5.2 0.2 4.6 % Prop
Slide 10: Balance Sheet
Balance Sheet Total Assets vs Q4 2025 (In US$ millions) Q2 2026 Q4 2025 % (In US$ billions) Cash and cash equivalents $ 1,441 $ 1,709 (16)% $14.4 $14.2 $14.3 Reverse Repos & S/T Investments 2,291 1,853 24 % Investments 5,666 5,688 —% Loans (net) 4,403 4,382 1% Other Assets 546 462 18 % $5.5 $5.7 $5.
Slide 11: Asset Quality
Asset Quality Non-Accrual Loans Investment Portfolio (In US$ millions) Loan Distribution Rating Distribution $93.3 $96.0 $90.2 AAA 0.2% Consumer Res Mtg 4.5% 71.2% Comm’l R/E 12.4% Other Comm’l 6.2% AA 99.8% Government 5.7% $4.4 billion $5.7 billion Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 • 71% of t
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity Average Balance - Balance Sheet Interest Rate Sensitivity Average Balances 6.9% (US$Mil) Weighted Average Life 3.4% Q2 2026 vs. Q1 2026 Duration vs. Q1 2026 2.6% 1.5% Cash & Reverse Repos & S/T Invest. $ 3,856.6 $ 210.5 0.2 — N/A AFS 2,801.3 59.4 2.9 — 3.5 (1.6)% HTM** 2,91
Slide 13: Capital Requirements and Dividend Return
Capital Requirements and Dividend Return Regulatory Capital - Total Capital Ratio Leverage Capital 13.0% 27.5% 0.5% 8.1% 0.9% 12.6% 7.2% 15.4% 13.5% Butterfield Current US Peer Median** Butterfield Current BMA Minimum US Peer Median** TCE/TA TCE/TA Ex Cash Combined Payout Ratio * 78% 109% 97% 90% •
Slide 14: CIBC Caribbean Update
CIBC Caribbean Update 14
Slide 15: Update on the Acquisition of CIBC Caribbean
Update on the Acquisition of CIBC Caribbean • The transaction remains on track with key approvals, financing activities and integration planning progressing as expected • Employee, community, government, and stakeholder engagement is ongoing ◦ First set of regulatory licencing applications have been
Slide 16: Creating a Leading Independent Banking Platform
Creating a Leading Independent Banking Platform Leading Bank in Attractive Markets Step Change in Scale(2) #1 #1 Leading Bank in $29bn $25bn Cayman Islands Bermuda International Financial Centers Total Assets(8) Total Deposits(8) Bank(1) Bank(1) and Attractive 50%+ 30% Caribbean Markets Deposit Mark
Slide 17: Appendix
Appendix 17
Slide 18: Deposit Composition by Segment
Deposit Composition by Segment Group (US$ Billions) Bermuda (US$ Billions) $12.8 $12.9 $12.9 $4.8 $4.6 $4.5 31% 30% 30% 20% 22% 21% 44% 45% 43% 49% 50% 49% 36% 33% 36% 20% 21% 21% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Cayman (US$ Billions) Channel Islands (U
Slide 19: Loans
Loans Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billions) $3.6 $3.1 $3.2 $1.4 $1.1 $1.1 49% 49% 50% 54% 54% 46% 48% 46% 51% 51% 23% 22% 21% 21% 22% 19% 20% 22% 25% 24% 9% 9% 10% 6% 6% 29% 29% 28% 27% 26% 24% 21% 23% 18% 19% 2022 2023 2024 2025 Q2 2026 2022 2023 2024 2025 Q2 202
Slide 20: Balance Sheet Movements
Balance Sheet Movements Deposit Movements (US$ millions) Deposit Composition by Currency (US$ billions) FX $12.8 $12.9 $12.9 Volume Translation 6% 6% 6% 24% 22% 22% Change vs Q1 $+30 +35 -5 2026 70% 72% 71% Change vs Q4 +275 -65 $+210 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 USD / USD Pegged GBP
Slide 21: Balance Sheet Trends
Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Assets Cash and cash equivalents $ 1,441 $ 1,942 $ 1,709 $ 1,501 $ 1,450 $ 2,097 $ 1,998 $ 2,067 $ 2,390 Reverse Repos & S/T Investments 2,291 1,930 1,853 1,987 2,247 1,498 1,785 1,
Slide 22: Average Balance Sheet Trends
Average Balance Sheet Trends (in millions of US Dollars, unless otherwise indicated) Q2 2026 Q1 2026 Q2 2025 Average Interest Average rate Average Interest Average rate Average Interest Average rate Assets balance ($) ($) (%) balance ($) ($) (%) balance ($) ($) (%) Cash and cash equivalents, reverse
Slide 23: Income Statement Trends
Income Statement Trends (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Net Interest Income $ 95.6 $ 93.3 $ 92.6 $ 92.7 $ 89.4 $ 89.3 $ 88.6 $ 88.1 $ 87.4 Non-Interest Income 63.4 62.6 66.3 61.2 57.0 58.4 63.2 56.0 55.6 Prov. for Credit (Losses) Reco
Slide 24: Non-Interest Income & Expense Trends
Non-Interest Income & Expense Trends (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Non-Interest Income Asset Management $ 10.3 $ 10.4 $ 10.4 $ 9.9 $ 9.4 $ 9.5 $ 9.1 $ 9.5 $ 8.9 Banking 15.9 16.3 19.7 17.8 14.7 15.1 21.2 14.4 13.8 FX Revenue 13.3 14
Slide 25: Core Non-Interest Expense Trends
Core Non-Interest Expense** Trends (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Salaries & Benefits* $ 48.3 $ 46.1 $ 46.7 $ 45.8 $ 46.4 $ 44.1 $ 44.7 $ 44.7 $ 44.7 Technology & Comm. 16.2 15.4 16.7 16.0 16.3 16.0 16.6 16.5 16.9 Professional & O/S
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q2 Q1 Q4 Q3 Q2 Net income A $ 46.9 $ 62.6 $ 63.8 $ 61.1 $ 53.3 Non-core (gains), losses and expenses Non-core expenses Early retirement program, voluntary separation, redundancies and other non-core compensatio
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q2 Q1 Q4 Q3 Q2 Tangible equity to tangible assets Shareholders' equity K $ 1,148.7 $ 1,136.1 $ 1,141.9 $ 1,106.0 $ 1,069.1 Less: goodwill and intangible assets (118.6) (83.9) (86.8) (88.8) (92.2) Ta
Slide 28: Peer Group
Peer Group Our peer group includes the following banks, noted by their ticker symbols: • First Hawaiian, Inc. (FHB) • Trustmark Corporation (TRMK) • Bank of Hawaii Corporation (BOH) • International Bancshares Corporation (IBOC) • East West Bancorp, Inc. (EWBC) • Community Financial System, Inc. (CBU
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