The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Q3 2020 Results Conference Call October 29, 2020 10:00 AM ET Company Participants Noah Fields - Head, IR Michael Collins - Chairman and CEO Michael Schrum - CFO Conference Call Participants Will Nance - Goldman Sachs Alex Twerdahl - Piper Sandler Michael Perito - KBW Timur Braziler - Wells Fargo Operator Good morning. My name is Carey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2020 E ...

Third Quarter Earnings Presentation The Bank of N.T. Butterfield & Son Limited October 29, 2020 合 三 元 号 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 performance, and i ...

Financial Data and Key Metrics Changes - The bank reported net income of $34.3 million, or $0.67 per share, which is 14.9% lower than the prior quarter due to COVID-19-related economic slowdown [9] - Core return on average tangible common equity decreased to 15.5% from 18.6% in the prior quarter [10] - Net interest margin (NIM) fell by 15 basis points to 2.48% compared to the linked quarter [10] - Non-interest income decreased by 12.4% compared to the prior quarter, primarily due to slower economic activity during lockdowns [20] - Core non-interest expense was down 6.5% in the second quarter compared to the prior quarter [22] - Tangible book value per share increased by 3.6% in the second quarter and is up 8.4% over the last two quarters [23] Business Line Data and Key Metrics Changes - The bank's loans are predominantly residential, with 63% of loans being residential, and 80% of those having a loan-to-value (LTV) ratio below 70% [28] - Non-accrual loans increased by $20 million in the quarter, primarily due to one commercial loan and several residential mortgages [31] - The bank's exposure to hotels and restaurants remains limited, with well-structured loans and collateral packages in place [17] Market Data and Key Metrics Changes - The bank operates in 10 locations, with varying impacts from COVID-19 across jurisdictions [12] - Bermuda's tourism season was significantly impacted, with the island entering a mandatory shelter-in-place period in April [12] - The Cayman Islands are hoping to open their airport in the coming months, which is crucial for their tourism season [14] Company Strategy and Development Direction - The bank aims to review costs and explore new fee-generating opportunities with less reliance on interest rate-sensitive revenue sources [17] - The bank is focusing on in-market lending opportunities, particularly in the Channel Islands, to expand its product offerings [50] - The bank continues to evaluate M&A opportunities while maintaining a conservative balance sheet [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's operational resilience and ability to adapt to new safety guidelines during the pandemic [8] - The bank has implemented mortgage deferral programs to support clients, with 85% of mortgage holders in good standing benefiting from deferrals [30] - Management acknowledged the uncertainty in the operating environment, particularly in Bermuda, and indicated that assistance for customers may be needed beyond the initial deferral period [55] Other Important Information - The bank successfully issued $100 million of subordinated debt during the quarter, which will primarily be used to replace existing debt [11] - The board proposed adding two new directors with extensive financial experience [36] Q&A Session Summary Question: Can you provide more details on the sequential decrease in expenses and its sustainability? - Management noted that the decrease was partly due to reduced travel and client meetings during the pandemic, and they are monitoring expenses closely [44][48] Question: What are the opportunities for expanding non-interest income? - Management highlighted a focus on in-market lending and expanding product offerings in the Channel Islands as key opportunities [49][50] Question: How are customers feeling about their cash position and outlook? - Management indicated that while participation in deferral programs has decreased, there is still uncertainty, particularly in Bermuda, regarding customer confidence [55] Question: Can you elaborate on the loans that migrated to non-performing status? - Management explained that the non-performing loans were primarily in Bermuda and involved a mix of commercial and residential loans, with a focus on those already struggling before the pandemic [61][84] Question: What is the outlook for the mortgage portfolio and allowance for credit losses? - Management expects some increase in delinquencies, particularly in Bermuda, but noted that the bank has a good track record of managing such situations [88][90]

Second Quarter Earnings Presentation The Bank of N.T. Butterfield & Son Limited July 23, 2020 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. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "co ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...