Share count
40Mpeak FY2018
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NTB, The Bank of N.T. Butterfield & Son Limited
Banks financial
We are a full service bank and wealth manager headquartered in Hamilton, Bermuda.
In the Channel Islands, a broad range of services are provided to individuals, private clients and trusts, and to financial intermediaries and funds including deposit services, mortgage lending, private and corporate banking, treasury services, wealth management and fiduciary services.
In our Bermuda and Cayman segments, our bank provides a full range of retail and corporate banking services to individuals, local businesses, captive insurers, reinsurance companies, trust companies, and hedge funds.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$364M
+3.7% YoY · 3% 5-yr CAGR
Vital signs · FY2025, with 5-yr average
Revenue $364M 5-yr avg $345M
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Net interest margin, loan losses, and book value. A lender is read on the quality of its balance sheet, not an earnings multiple, and the worst year of credit losses matters more than the best. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Return on equity has run high across the record (median 19%, above 12% in 10 of 10 years). A bank that earns above its cost of equity through the cycle compounds book value; whether this one did it by underwriting discipline or by reaching for risk is what the 10-K, and the worst years in the record, will tell you.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$364Mlow FY2016
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Is it a good business?
- Return on equity 20%Very high (≥17%)Net income $232M ÷ equity $1.1BIndustry peers: median 9%
What this means
The bank's north star, what it earns on shareholders' capital. Cost of equity is roughly 10%, so a return durably above that builds value and below it destroys it. One year is noisy; the durability across a full credit cycle is what counts.
- Very high (≥18%)Net income ÷ (equity − goodwill $25M − intangibles $0)Industry peers: median 10%
What this means
The cleaner return, stripping out the goodwill paid for past acquisitions. This is the number a buyer of the whole bank actually earns on the hard capital.
- Not enough dataIndustry peers: median 62%
What this means
Noninterest expense or revenue missing.
Is it sound?
- Capital (equity / assets) 8.1%AdequateEquity $1.1B ÷ assets $14.1B
What this means
A plain-English leverage read: how much of the balance sheet is the owners' own money. This is a rough proxy; the regulatory figure is the CET1 ratio, which is risk-weighted and reported in the filing. The point is the same, how much loss the bank can absorb before depositors are at risk.
- Deposit funding 90%Deposit-fundedDeposits $12.7B ÷ assets $14.1B
What this means
Low-cost, sticky deposits are a bank's real moat, the cheap raw material it lends out at a spread. A bank funded mostly by deposits earns more durably than one that rents its money in the wholesale market.
- Credit cost (provision / NII) -1%Net reserve releaseProvision for credit losses ($4M) ÷ net interest income $364M
What this means
What the bank set aside this year against loans going bad, as a share of its lending income. This swings hard with the cycle, low in good years and spiking in recessions, so read it across the record, not in one year. Disciplined underwriting shows up as low, stable provisions through a downturn.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Peers, Banks
The same industry, side by side on the bank lens. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | ROE | ROTCE | Efficiency | NII / assets |
|---|---|---|---|---|---|
| SYBTStock Yards Bancorp Inc. | $397M | 13% | 15% | 56% | 3.1% |
| OBKOrigin Bancorp Inc. | $391M | 7% | 9% | 66% | 3.1% |
| CNOBConnectOne Bancorp Inc. | $388M | 8% | 10% | 48% | 2.9% |
| FMBHFirst Mid Bancshares Inc. | $349M | 9% | 12% | 63% | 2.9% |
| BHRBBurke & Herbert Financial Services Corp. | $342M | 9% | 9% | 65% | 2.9% |
| OSBCOld Second Bancorp Inc. | $339M | 11% | 12% | 62% | 3.4% |
| PGCPeapack-Gladstone Financial Corporation | $283M | 9% | 9% | 61% | 2.4% |
| NTBThe Bank of N.T. Butterfield & Son Limited | $364M | 19% | 20% | — | 2.5% |
| Group median | — | 9% | 11% | — | 2.9% |
The price
What a price has to assume.
What the price implies
price / tangible bookEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. The Bank of N.T. Butterfield & Son Limited's US listing is the ordinary share itself. The record tables elsewhere on this page remain as filed.
A bank is worth a multiple of its tangible book value, and the multiple it deserves is set by the return it earns on that book. Type today’s price; we show what you would be paying against what The Bank of N.T. Butterfield & Son Limited’s record justifies.
$
The assumptions
Tangible book / share, delivered8%/yr’20→’25
The justified multiple is (return on tangible equity − growth) ÷ (cost of equity − growth). A bank earning exactly its cost of equity is worth about one times tangible book; the premium above that prices each point of durable excess return. A higher cost of equity lowers the justified multiple for a bank.
Enter a price above to run it.
Price / tangible book—
Justified by the return—
Normalized return on tangible equity20%
Price / book—
Earnings yield—
P/E (3-yr avg ’23–’25)—
Graham’s price gate—
Graham applied the same standards to financial enterprises (Intelligent Investor ch.14): the 15× multiple cap on averaged earnings, and P/E times price-to-book at most 22.5. The gate marks the bargain-hunter’s floor, not a verdict.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Tangible book $1.1B on 40M shares, a 20% normalized return on it. The dials set the multiple such a return would justify; your price sets the multiple you are paying. It assumes the bank keeps earning that return; a credit cycle, a rate shock or a bad acquisition changes it, which is what the record and the 10-K are for.
Cite: Owner Scorecard, "The Bank of N.T. Butterfield & Son Limited (NTB), the owner's record," https://ownerscorecard.com/c/NTB, data as of 2026-07-09.
Manual order: ← NPT its page in the Manual NTES →
Industry order: ← NRIM the Banks chapter NTRS →