The Bank of N.T. Butterfield & Son (NTB) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $53.8M ($1.23 per share); core net income was $56.7M ($1.30 per share).

• Core return on average tangible common equity was 24.2%; return on average common equity was 20.9%.

• Net interest margin expanded to 2.70%, up from 2.61% in the prior quarter.

• Maintained a conservative, highly liquid balance sheet and disciplined loan book.

• Executed a voluntary early retirement program, reducing future expenses.

Financial highlights

• Net interest income rose to $89.3M, up $0.7M sequentially and $2.2M year-over-year.

• Non-interest income was $58.4M, down $4.8M sequentially due to lower transaction volume and seasonality, but up $3.3M year-over-year.

• Core non-interest expenses were stable at $90.3M, with a core efficiency ratio of 59.8%.

• Quarterly cash dividend of $0.44/share approved; 1.1M shares repurchased at $37.78 average price.

• Tangible book value per share increased 5.7% to $22.94.

Outlook and guidance

• Expect quarterly core expense run rate of $90M–$92M in 2025, with emerging inflationary risks.

• Anticipate average deposits to settle between $11.5B–$12B in coming quarters.

• NIM expansion expected to continue, but at a slower pace, driven by investment book yield pickup.

• Management remains focused on long-term value creation, capital efficiency, and navigating economic and interest rate cycles.

• Forward-looking statements highlight risks from global economic conditions, interest rate changes, and integration of acquisitions.