Core Insights - Bank of NT Butterfield & Son reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $1.17 per share a year ago, resulting in an earnings surprise of 26.21% [1] - The company achieved revenues of $147.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.56% and up from $142.2 million year-over-year [2] - The stock has gained approximately 3.9% since the beginning of the year, contrasting with the S&P 500's decline of -10.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $139.7 million, and for the current fiscal year, it is $4.40 on revenues of $567.9 million [7] - The estimate revisions trend for the company is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Foreign industry, to which Bank of NT Butterfield & Son belongs, is currently ranked in the top 7% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Bank of NT Butterfield & Son (NTB) - NTB currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] - Over the past week, NTB shares increased by 0.73%, outperforming the Zacks Banks - Foreign industry, which rose by 0.26% [6] - In the last quarter, NTB shares rose by 4.97%, and over the past year, they increased by 31.58%, while the S&P 500 saw declines of -2.97% and gains of 15.34%, respectively [7] Price and Volume Analysis - NTB's monthly price change of 5.94% is favorable compared to the industry's 5.57% performance [6] - The average 20-day trading volume for NTB is 183,680 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for NTB increased, while none decreased, raising the consensus estimate from $3.90 to $4.40 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive momentum indicators and earnings outlook, NTB is positioned as a strong buy candidate for investors seeking short-term gains [12]

Financial Performance - Total net revenue for 2024 was reported at $14,231.4 million, with the Bermuda segment contributing 43.5% and the Cayman segment contributing 31.5%[431] - Net income for 2024 decreased by $9.2 million, or 4.1%, to $216.3 million from $225.5 million in 2023, primarily due to rising deposit costs and higher non-interest expenses[452] - Net revenue for 2024 was $581.2 million, a slight increase of $1.9 million (0.3%) compared to $579.3 million in 2023[464] - Core net income attributable to common shareholders for 2024 was $218.9 million, a decrease of $12.6 million (5.4%) from $231.5 million in 2023[480] - Earnings per common share fully diluted increased to $4.71 in 2024, up $0.13 (2.8%) from $4.58 in 2023[480] Assets and Liabilities - Total assets increased to $14,231.4 million in 2024, up from $13,374.0 million in 2023, while total loans decreased to $4,473.6 million from $4,745.8 million[431] - Total assets increased by $0.9 billion to $14.2 billion, driven by increased deposit levels, while total deposits rose by $0.8 billion to $12.7 billion[453] - Total assets as of December 31, 2024, were $5.4 billion, an increase of $257 million or 5.0% from $5.2 billion in 2023[617] - Total deposits rose to $12.7 billion in 2024, a 6.3% increase from $12.0 billion in 2023[561] - The loan portfolio decreased from $4.7 billion at the end of 2023 to $4.5 billion as of December 31, 2024, representing 31.4% of total assets[577] Income and Expenses - Total non-interest expenses rose by $6.7 million to $359.1 million, largely due to increased technology and communication costs[454] - Interest expense increased significantly by $55.8 million (31.2%) from 2023 to 2024, totaling $234.5 million[464] - The average cost of deposits increased by 43 basis points to 183 basis points, with interest-bearing deposit costs rising by 50 basis points to 231 basis points[454] - Non-interest income rose to $230.0 million, reflecting an increase of $17.7 million (8.3%) compared to $212.3 million in 2023[464] - Core non-interest expenses increased by $14.1 million or 4.1% in 2024, with a core efficiency ratio rising to 60.0% from 58.1% in 2023[544] Economic Indicators - The Bermuda economy grew by an estimated 4.9% in 2023, with real GDP in 2024 showing initial growth of 8.7% driven by the international business sector and tourism recovery[433] - The Cayman Islands GDP is projected to grow by 2.8% in 2024, with real estate transactions reaching $1.0 billion, a 7.0% increase from 2023[441] - Inflation in the Cayman Islands is anticipated to be 2.6% for 2024, with projections of 2.5% and 2.1% for 2025 and 2026 respectively[441] Shareholder Information - The company declared four quarterly dividends of $0.44 per share, totaling $1.76 for each common share held[452] - A new share repurchase program was approved, authorizing the purchase of up to 2.7 million common shares through December 31, 2025[452] - Shareholders' equity increased by $17.2 million to $1.0 billion, attributed to organic growth through net income and adjustments in employee benefit plans[454] Investment and Management - The total assets under management (AUM) for Butterfield Funds reached $2,416.3 million in 2024, up from $1,970.7 million in 2023[431] - Total assets under management (AUM) rose by $0.5 billion to $6.0 billion as of December 31, 2024, compared to $5.5 billion in 2023, driven by increased market values[530] - The total carrying value of the available-for-sale (AFS) investment portfolio was $2.3 billion, while the held-to-maturity (HTM) investment portfolio was valued at $3.2 billion as of December 31, 2024[490] Employee and Operational Metrics - The number of employees decreased to 221 in the Cayman segment, down 14 or 6.0% from 235 in 2023[625] - Salaries and other employee benefits costs were $174.0 million in 2024, a decrease of $3.9 million compared to 2023[548] - Technology and communications costs increased by $4.1 million from 2023 to 2024, reflecting higher software maintenance costs[551]

Core Insights - Bank of NT Butterfield & Son (NTB) shows a significantly improving earnings outlook, making it an attractive option for investors as analysts continue to raise earnings estimates [1][3] - The upward trend in earnings estimate revisions reflects growing analyst optimism, which is expected to positively impact the stock price [2][6] - The Zacks Rank system indicates a strong consensus among analysts, with NTB currently holding a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance [3][6] Current-Quarter Estimate Revisions - For the current quarter, NTB is projected to earn $1.03 per share, representing a year-over-year decline of 11.97% [4] - Over the last 30 days, one estimate has increased while there were no negative revisions, leading to a 13.19% rise in the Zacks Consensus Estimate [4] Current-Year Estimate Revisions - NTB is expected to earn $4.40 per share for the full year, reflecting a decrease of 7.76% compared to the previous year [5] - Similar to the current quarter, there has been a positive trend in estimate revisions, with one estimate moving up and no negative revisions, resulting in a 12.82% increase in the consensus estimate [5] Favorable Zacks Rank - The positive estimate revisions have contributed to NTB's Zacks Rank 1 (Strong Buy), indicating strong potential for stock performance [6] - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, reinforcing the attractiveness of NTB [6] Bottom Line - Investors have shown confidence in NTB, evidenced by a 9.7% stock gain over the past four weeks, driven by solid earnings growth prospects [7]

Core Viewpoint - Bank of NT Butterfield & Son (NTB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The recent upgrade reflects an improvement in the earnings outlook for Bank of NT Butterfield & Son, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [5][7]. - For Bank of NT Butterfield & Son, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely resulting in higher stock prices [6]. Performance of Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade places Bank of NT Butterfield & Son in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11]. Earnings Estimate Details - For the fiscal year ending December 2025, Bank of NT Butterfield & Son is expected to earn $4.40 per share, reflecting a year-over-year change of -7.8%. However, the Zacks Consensus Estimate has increased by 12.8% over the past three months [9].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Bank of NT Butterfield & Son (NTB) - NTB currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The stock has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market [4] Performance Metrics - NTB shares have increased by 3.52% over the past week, outperforming the Zacks Banks - Foreign industry, which rose by 0.65% [6] - Over the past month, NTB's price change is 9.72%, compared to the industry's 6.95% [6] - In the last quarter, NTB shares rose by 5.62%, and over the past year, they gained 30.33%, while the S&P 500 increased by 2.43% and 24.91%, respectively [7] Trading Volume - NTB's average 20-day trading volume is 174,991 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for NTB has increased, raising the consensus estimate from $3.90 to $4.40 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, NTB is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling near-term investment option [12]

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 ...

Financial Data and Key Metrics Changes - The company reported a net income of $216.3 million and core net income of $218.9 million for the full year 2024, resulting in a core return on average tangible common equity of 24% [9] - The net interest margin decreased to 2.64% from 2.80% in 2023, with the cost of deposits rising to 183 basis points from 140 basis points in 2023 [10] - Tangible book value per common share grew by 12.5% to end the year at $21.70 [11] Business Line Data and Key Metrics Changes - In Q4 2024, net income and core net income were $59.6 million, with core earnings per share of $1.34 and a core return on average tangible common equity of 25.2%, an increase of 270 basis points over Q3 [14] - Non-interest income totaled $63.2 million for Q4, up 12.9% compared to the prior quarter, driven by seasonal increases in card services and transaction volumes [19][20] - Total core non-interest expenses were $89.6 million, a 2.2% increase compared to the prior quarter, primarily due to increased marketing expenditures [21] Market Data and Key Metrics Changes - Bermuda and Cayman experienced improved visitor numbers, contributing to economic development, with expectations for continued growth in 2025 and beyond [12] - The international financial services business, particularly in reinsurance and asset management, continued to grow in 2024 [12] Company Strategy and Development Direction - The company aims to pursue sustainable growth in a stable rate environment while focusing on organic growth opportunities in the Channel Islands and Singapore [30] - Active capital management remains a priority, with a focus on returning excess capital to shareholders and pursuing acquisitions of fee businesses [29] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the company's performance in 2024, highlighting a secure and conservatively managed balance sheet [29] - The company expects to manage expenses carefully while investing in technology and operational efficiency [30] Other Important Information - The Board approved a quarterly cash dividend of $0.44 and repurchased approximately 1.3 million shares at an average price of $37.42 during the quarter [16] - The company continues to maintain strong asset quality with low credit risk in its investment portfolio [25] Q&A Session Summary Question: Deposit trends and expectations - Management noted that deposit levels have remained elevated, with expectations to settle around $11.5 billion to $12 billion [40][41] Question: Margin trajectory and net interest income - Management expects a slow expansion of net interest margin over the next couple of quarters, driven by active management of deposit costs and investment yields [46][48] Question: Capital priorities and buyback strategy - Management emphasized the importance of retaining the current dividend rate while remaining open to M&A opportunities and managing buybacks based on share price [50][56] Question: Expense trajectory and non-interest income guidance - Management anticipates quarterly expenses to remain in the range of $90 million to $92 million, with non-interest income expected to stabilize around mid-$50 million per quarter [82][84] Question: Drivers of lower non-performing loans - Management highlighted the full repayment of a facility that had gone over 90 days and ongoing positive developments in the legacy hospitality facility liquidation process [88][91]

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].

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 ...