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

Executive summary

• Net income for Q2 2025 was $53.3M ($1.25 per share); core net income was $53.7M ($1.26 per share), driven by strong net interest income, diversified fee revenue, and prudent expense management.

• Return on average common equity was 20.3%; core return on average tangible common equity was 22.3%.

• Quarterly cash dividend increased by 14% to $0.50 per share; 1.1M shares repurchased at $40.69 average price; new repurchase authorization for up to 1.5M shares.

• Maintained a stable balance sheet and continued to generate long-term value in offshore banking and wealth management markets.

• Andrew Henton appointed as Independent Director, bringing extensive UK and offshore financial sector experience.

Financial highlights

• Net interest income for Q2 2025 was $89.4M, marginally up from Q1 and year-over-year.

• Net interest margin declined to 2.64% from 2.7% in the prior quarter, mainly due to lower treasury yields and a one-time impact from debt redemption.

• Non-interest income totaled $57M, down $1.4M sequentially, mainly from seasonal reductions in banking and FX fees.

• Non-interest expenses were $91.4M–$91.8M, slightly higher than the prior quarter, impacted by FX and increased incentive accruals.

• Core earnings per share reached $1.26; core efficiency ratio was 61.1%–61.3%, above the 60% target.

Outlook and guidance

• Expect quarterly core expense rate between $90M and $92M for the remainder of the year, monitoring inflation and FX fluctuations.

• AFS OCI expected to improve by 33% in 12 months and 42% in 24 months based on implied forward rates.

• Management continues to target a through-cycle core efficiency ratio of 60%.

• Continued focus on M&A, especially in private trust, and ongoing evaluation of potential acquisitions.

• Forward-looking statements caution on economic, market, and integration risks, including interest rate and credit environment uncertainties.