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 ...

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 ...

The reported revenue compares to the Zacks Consensus Estimate of $138.85 million, representing a surprise of +3.05%. The company delivered an EPS surprise of +7.77%, with the consensus EPS estimate being $1.03. Core Efficiency Ratio: 61.8% versus 63.1% estimated by two analysts on average. Net Interest Margin: 2.6% compared to the 2.7% average estimate based on two analysts. Net Charge-Off Ratio: 0% compared to the 0.1% average estimate based on two analysts. Average balance - Interest earning assets: $13.2 ...