Butterfield Reports Third Quarter 2025 Results

Core Insights - The Bank of N.T. Butterfield & Son Limited reported a net income of $61.1 million for Q3 2025, an increase from $53.3 million in the previous quarter and $52.7 million in Q3 2024, translating to $1.46 per diluted common share [2][15] - Core net income for the same period was $63.3 million, up from $53.7 million in the previous quarter and $52.8 million in Q3 2024, equating to $1.51 per diluted common share [2][15] - The return on average common equity improved to 22.5% in Q3 2025 from 20.3% in the previous quarter and the same period last year [3] Financial Performance - Net interest income (NII) for Q3 2025 was $92.7 million, an increase of $3.3 million from the previous quarter and $4.7 million higher than Q3 2024 [5] - The net interest margin (NIM) rose to 2.73%, up 9 basis points from the previous quarter and 12 basis points from Q3 2024 [6] - Non-interest income increased to $61.2 million, up $4.2 million from the previous quarter and $5.1 million from Q3 2024, driven by higher banking fees and foreign exchange volumes [7] Expense Management - Non-interest expenses decreased to $90.8 million in Q3 2025 from $91.8 million in the previous quarter and $88.8 million in Q3 2024 [8] - Core non-interest expenses were $88.5 million, lower than $91.4 million in the previous quarter and relatively flat compared to $88.6 million in Q3 2024 [8] Capital Management - The Board declared a quarterly cash dividend of $0.50 per common share, payable on November 25, 2025 [12] - The tangible book value per share increased to $25.06 at the end of Q3 2025, up from $23.77 in the previous quarter and $21.70 at the end of 2024 [11] Regulatory Compliance - The Bank adopted the Basel Committee's revised standardized approach for credit risk effective January 1, 2025, with a total regulatory capital ratio of 27.0% as of September 30, 2025, compared to 25.8% at the end of 2024 [13] Asset Management - Total assets were $14.1 billion at September 30, 2025, a decrease of $145 million from December 31, 2024 [17] - The loan portfolio remained stable at $4.5 billion, representing 31.7% of total assets [19][20] - The investment portfolio increased to $5.7 billion, reflecting a deployment of assets into high-quality securities [22]