The Bank of N.T. Butterfield & Son (NTB) investor relations material

Executive summary

• Achieved full-year 2025 net income of $231.9 million ($5.47/share) and core net income of $237.5 million ($5.60/share), with core net income per share up 17.4% year-over-year.

• Fourth quarter 2025 net income and core net income were $63.8 million ($1.54/share), with return on average common equity of 22.7%.

• Maintained expense discipline, advanced technology, and increased non-interest income, with robust capital returns through dividends and share repurchases.

• Continued M&A growth strategy and active discussions with potential targets, focusing on private trust and bank acquisitions.

• Maintained leading market positions in Bermuda and Cayman, with expanding retail offerings in the Channel Islands.

Financial highlights

• Net interest margin for 2025 was 2.69%; Q4 net interest income was $92.6 million, flat sequentially.

• Non-interest income in Q4 2025 rose to $66.3 million, up $5.1 million from Q3, driven by higher banking, trust, FX, and asset management fees.

• Tangible book value per share grew 21.7% year-over-year to $26.41 at year-end.

• Quarterly dividend increased to $0.50/share; annual dividends totaled $1.88/share, with 3.5 million shares repurchased for $146.7 million in 2025.

• Core non-interest expenses increased to $93.1 million in Q4 2025, mainly due to higher professional services, staff incentives, and marketing.

Outlook and guidance

• Quarterly core expenses expected to settle between $90 million and $92 million, with Q1 typically lower due to seasonality.

• Anticipate continued strong non-interest income, especially from trust and FX businesses.

• Expect OCI improvement with additional burndown of 28% over the next 12 months.

• Focus remains on capital management, with a combined payout ratio near 100% of net income for 2025.

• Basel 4 rules effective January 1, 2025, reduced risk-weighted assets and improved regulatory capital ratios.