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Butterfield Reports 2025 Third Quarter Results The Bank of N.T. Butterfield & Son Limited announced financial results for the quarter ended September 30, 2025. A spokesperson said, “Net income for the third quarter of 2025 was $61.1 million, or $1.46 per diluted common share, compared to net income of $53.3 million, or $1.25 per diluted common share, for the previous quarter and $52.7 million, or $1.16 per diluted common share, for the third quarter of 2024. Core net income1 for the third quarter of 2025 was $63.3 million, or $1.51 per diluted common share, compared to $53.7 million, or $1.26 per diluted common share, for the previous quarter and $52.8 million, or $1.16 per diluted common share, for the third quarter of 2024. “The return on average common equity for the third quarter of 2025 was 22.5% compared to 20.3% for the previous quarter and 20.3% for the third quarter of 2024. The core return on average tangible common equity1 for the third quarter of 2025 was 25.5%, compared to 22.3% for the previous quarter and 22.5% for the third quarter of 2024. The efficiency ratio for the third quarter of 2025 was 57.7%, compared to 61.3% for the previous quarter and 60.3% for the third quarter of 2024. The core efficiency ratio1 for the third quarter of 2025 was 56.2% compared with 61.1% in the previous quarter and 60.2% for the third quarter of 2024.” Michael Collins, Butterfield’s Chairman and Chief Executive Officer, commented, “Butterfield’s strong third quarter performance demonstrates the resilience of our business model as we improved efficiency across the organization. We delivered higher banking and foreign exchange fees, while our net interest income and margin improved as a result of lower deposit costs and a conservative asset mix. Our proactive capital management continued to deliver strong shareholder returns through a quarterly cash dividend and share repurchases. Together, these outcomes underscore the effectiveness of our strategy and commitment to build long-term value for clients and shareholders.” A spokesperson added, “Net income and core net income1 were up in the third quarter of 2025 versus the prior quarter, primarily driven by higher banking revenue due to increased card volumes and incentives and higher foreign exchange revenue. Additionally, the improvements were attributable to higher net interest income from lower cost of deposits and the prior quarter’s redemption of subordinated debt. “Net interest income [“NII”] for the third quarter of 2025 was $92.7 million, an increase of $3.3 million over NII of $89.4 million in the previous quarter and $4.7 million higher compared to $88.1 million in the third quarter of 2024. NII was higher during the third quarter of 2025 compared to the previous quarter and the third quarter of 2024 due to a lower cost of deposits as central banks have reduced market rates and the redemption of subordinated debt in the prior quarter, which were partially offset by lower loan and treasury yields. “Net interest margin [“NIM”] for the third quarter of 2025 was 2.73%, an increase of 9 basis points from the previous quarter at 2.64% and 2.61% in the third quarter of 2024. NIM in the third quarter of 2025 increased compared to the prior quarter and the third quarter of 2024 due to lower cost of deposits as central banks cut market rates and the repayment of subordinated debt in the prior quarter. “Non-interest income for the third quarter of 2025 was $61.2 million, an increase of $4.2 million from $57.0 million in the previous quarter and $5.1 million higher than $56.0 million in the third quarter of 2024. The increase in the third quarter of 2025 compared to the prior quarter and the third quarter of 2024 was due to higher banking fees from both card volume and incentive programs and higher foreign exchange volumes. “Non-interest expenses were $90.8 million in the third quarter of 2025, compared to $91.8 million in the previous quarter and $88.8 million in the third quarter of 2024. Core non-interest expenses1 of $88.5 million in the third quarter of 2025 were lower compared to the $91.4 million incurred in the previous quarter and the $88.6 million in the third quarter of 2024. Core non-interest expenses1 in the third quarter of 2025 were lower compared to the prior quarter due to lower salaries and other employee benefits, property costs, non-income taxes and other non-interest expenses. Core non-interest expenses1 in the third quarter of 2025 remains relatively flat compared to the third quarter of 2024. “Included in salaries and other employee benefits are non-core expenses of $2.2 million which relates to costs associated with senior executive departures. “Period end deposit balances remained relatively flat at $12.7 billion compared to December 31, 2024. Average deposits were $12.6 billion in the quarter ended September 30, 2025, which is slightly lower than the $12.7 billion in the prior quarter. “Tangible book value per share at the end of the third quarter of 2025 was $25.06 per share, higher than $23.77 per share at the end of the prior quarter and an increase over the $21.70 at December 31, 2024. The tangible book value per share continues to improve due to OCI burndown and retained earnings. “The Board declared a quarterly cash dividend rate of $0.50 per common share to be paid on November 25, 2025 to shareholders of record on November 11, 2025. During the third quarter of 2025, Butterfield repurchased 0.7 million common shares under the Bank’s existing share repurchase program. “Effective January 1, 2025, the Bank has adopted the Basel Committee on Banking Supervision’s ["BCBS"] revised standardized approach for credit risk framework as required by the Bermuda Monetary Authority ["BMA"]. Comparatives were prepared under the prior credit risk framework. The current total regulatory capital ratio as at September 30, 2025 was 27.0%, compared to 25.8% as at December 31, 2024. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank.” #BankOfButterfield #BermudaBanks #BermudaBusiness Category: All, Business
