The Bank of N.T. Butterfield & Son (NTB) Q3 2026 earnings summary

Executive summary

• Q3 net income was $61.0M, or $1.50/share; core net income was $64.2M, or $1.58/share.

• Earnings benefited from higher net interest and non-interest income and lower credit-loss provisions.

• Fee-based revenue was 40% of total revenue, with strong market positions in Bermuda and Cayman and a growing Channel Islands retail banking presence.

Financial highlights

• Net interest income was $97.2M, up $1.6M QoQ and $4.4M YoY; NIM was 2.76%, up 2 bps QoQ and 3 bps YoY.

• Non-interest income rose $1.4M QoQ to $64.8M and $3.6M YoY; higher card volumes, FX activity and a non-recurring contractual incentive contributed.

• Core non-interest expenses were $96.2M, up 3.5% QoQ, reflecting a full quarter of R&H Guernsey costs, higher salaries and benefits, staff departure costs and other expenses.

• Total assets were $14.3B; quarter-end deposits were $12.9B and net loans were $4.4B.

• Reported non-interest expenses were $99.3M, versus $109.8M QoQ and $90.8M YoY; Q3 included $3.2M of non-core expenses.

Outlook and guidance

• CIBC Caribbean closing is expected in H1 2027, subject to regulatory approvals and transaction completion; integration planning and regulatory engagement are progressing.

• Core NIM and NII are expected to remain relatively flat near term, with a positive medium-term bias and a modest NIM tailwind next year from previously announced Fed rate increases.

• Core non-interest expenses are expected to return to a quarterly run rate of $93M-$95M in the short term, before the CIBC Caribbean transaction closes.

• Deposit balances are expected to settle in the $12B-$12.5B range after announced outflows; fourth-quarter Cayman seasonality may affect near-term NII.

• Pro forma forecasts indicate $400M+ FY 2028 run-rate earnings, assuming fully phased-in synergies and excluding integration costs and purchase accounting; forecast scale is $29B in assets and $25B in deposits.