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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 66.1GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
81.3%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Bank of N.T. Butterfield & Son Ltd (NTB) receives a "Hold" rating with a composite score of 57.7/100, ranked #170 out of 4446 stocks. Key factor scores: Quality 66/100, Value 35/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
Bank of N.T. Butterfield & Son Ltd (NTB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Bank of N.T. Butterfield & Son Ltd Do?
The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and interest bearing and non-interest bearing deposits, as well as certificate of deposits. The company's lending portfolio includes residential mortgage lending, automobile lending, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, and fiduciary services. Further, it offers debit cards; automated teller machines; and personal and business deposit, merchant acquiring, and mobile and internet banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada. It also operates through 3 branches in Bermuda and 4 branches in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda. Bank of N.T. Butterfield & Son Ltd (NTB) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Michael W. Collins and employs approximately 1,340 people. With a market capitalization of $2.1B, NTB is one of the notable companies in the Financials sector.
Bank of N.T. Butterfield & Son Ltd (NTB) Stock Rating — Hold (April 2026)
As of April 2026, Bank of N.T. Butterfield & Son Ltd receives a Hold rating with a composite score of 57.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NTB ranks #170 out of 4,446 stocks in our coverage universe. Within the Financials sector, Bank of N.T. Butterfield & Son Ltd ranks #63 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NTB Stock Price and 52-Week Range
Bank of N.T. Butterfield & Son Ltd (NTB) currently trades at $56.02. The stock lost $0.49 (0.9%) in the most recent trading session. The 52-week high for NTB is $55.84, which means the stock is currently trading 0.3% from its annual peak. The 52-week low is $34.85, putting the stock 60.7% above its annual trough. Recent trading volume was 149K shares, suggesting relatively thin trading activity.
Is NTB Overvalued or Undervalued? — Valuation Analysis
Bank of N.T. Butterfield & Son Ltd (NTB) carries a value factor score of 35/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 10.63x, compared to the Financials sector average of 14.88x — a discount of 29%. The price-to-book ratio stands at 1.90x, versus the sector average of 1.22x. The price-to-sales ratio is 0.90x, compared to 0.90x for the average Financials stock. On an enterprise value basis, NTB trades at 0.33x EV/EBITDA, versus 3.26x for the sector.
At current multiples, Bank of N.T. Butterfield & Son Ltd trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Bank of N.T. Butterfield & Son Ltd Profitability — ROE, Margins, and Quality Score
Bank of N.T. Butterfield & Son Ltd (NTB) earns a quality factor score of 66/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 81.3%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 6.6% versus the sector average of 1.2%.
On a margin basis, Bank of N.T. Butterfield & Son Ltd reports gross margins of 60.6%. The operating margin is 39.4% (sector: 21.8%). Net profit margin stands at 37.3%, versus 17.7% for the average Financials stock. The overall profitability profile is adequate, though there may be room for margin expansion.
NTB Debt, Balance Sheet, and Financial Health
Bank of N.T. Butterfield & Son Ltd has a debt-to-equity ratio of 1134.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $191M. Cash and equivalents stand at $1.54B.
NTB has a beta of 0.57, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Bank of N.T. Butterfield & Son Ltd is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Bank of N.T. Butterfield & Son Ltd Revenue and Earnings History — Quarterly Trend
In TTM 2026, Bank of N.T. Butterfield & Son Ltd reported revenue of $607M and earnings per share (EPS) of $5.47. Net income for the quarter was $232M. Gross margin was 60.6%. Operating income came in at $229M.
In FY 2025, Bank of N.T. Butterfield & Son Ltd reported revenue of $607M. Net income for the quarter was $232M. Revenue grew 4.6% year-over-year compared to FY 2024.
In FY 2024, Bank of N.T. Butterfield & Son Ltd reported revenue of $580M and earnings per share (EPS) of $4.80. Net income for the quarter was $216M. Gross margin was 60.6%. Revenue grew 0.2% year-over-year compared to FY 2023. Operating income came in at $229M.
In FY 2023, Bank of N.T. Butterfield & Son Ltd reported revenue of $579M and earnings per share (EPS) of $4.62. Net income for the quarter was $225M. Gross margin was 63.4%. Revenue grew 5.3% year-over-year compared to FY 2022. Operating income came in at $212M.
Over the past 8 quarters, Bank of N.T. Butterfield & Son Ltd has demonstrated a growth trajectory, with revenue expanding from $533M to $607M. Investors analyzing NTB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NTB Dividend Yield and Income Analysis
Bank of N.T. Butterfield & Son Ltd (NTB) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
NTB Momentum and Technical Analysis Profile
Bank of N.T. Butterfield & Son Ltd (NTB) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 44/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NTB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing NTB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NTB vs S&P 500 (SPY) comparison to assess how Bank of N.T. Butterfield & Son Ltd stacks up against the broader market across all factor dimensions.
NTB Next Earnings Date
No upcoming earnings date has been announced for Bank of N.T. Butterfield & Son Ltd (NTB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NTB? — Investment Thesis Summary
Bank of N.T. Butterfield & Son Ltd presents a balanced picture with arguments on both sides. The quality score of 66/100 indicates above-average profitability and business fundamentals. The value score of 35/100 indicates premium valuation. Price momentum is positive at 66/100, suggesting the trend favors buyers. Low volatility (stability score 92/100) reduces downside risk.
In summary, Bank of N.T. Butterfield & Son Ltd (NTB) earns a Hold rating with a composite score of 57.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NTB stock.
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Institutional Research Dossier
Bank of N.T. Butterfield & Son Ltd (NTB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Bank of N.T. Butterfield & Son Ltd (NTB). The company's strong profitability metrics, particularly its high ROE and net margin relative to the financial sector, are counterbalanced by a relatively unattractive valuation based on multiples and concerns about long-term growth sustainability. While NTB demonstrates stability and generates substantial free cash flow, its concentrated geographic exposure and reliance on specific financial services present risks that warrant a cautious approach.
Our Hold rating reflects a balanced view of NTB's strengths and weaknesses. The company's impressive profitability and stable operations are attractive, but the valuation doesn't offer a compelling margin of safety, and the lack of clear growth catalysts tempers our enthusiasm. Investors should closely monitor the company's ability to maintain its profitability in a changing interest rate environment and its success in diversifying its revenue streams.
Business Strategy & Overview
Bank of N.T. Butterfield & Son Ltd operates as a full-service bank and wealth manager, primarily serving affluent individuals and businesses in offshore financial centers. The company's core business revolves around providing community, commercial, and private banking services, including deposit accounts, lending, and investment products. A significant portion of its revenue is derived from net interest income, influenced by interest rate spreads and loan volumes, as well as fee income from wealth management, trust, and custody services.
NTB's strategic positioning centers on being a leading financial institution in select offshore jurisdictions, such as Bermuda, the Cayman Islands, and Guernsey. This focus allows the company to develop deep relationships with its clients and build a strong reputation for expertise in international financial services. However, it also concentrates its business in markets that are sensitive to regulatory changes and economic fluctuations.
The company's growth strategy involves organic expansion within its existing markets, as well as strategic acquisitions to expand its geographic footprint and service offerings. NTB has historically been active in acquiring smaller banks and trust companies to enhance its market share and capabilities. The success of this strategy depends on its ability to integrate acquisitions effectively and maintain its high service standards.
NTB's product pipeline is focused on enhancing its digital banking capabilities and expanding its range of wealth management solutions. The company is investing in technology to improve the customer experience and streamline its operations. It is also developing new investment products and services to meet the evolving needs of its affluent clientele. The competitive landscape includes other international banks and wealth managers operating in offshore financial centers. NTB differentiates itself through its strong local presence, personalized service, and expertise in complex financial matters.
Execution Benchmarks audit
Gross Margin
Core pricing power
60.6%
Sector: 0.0%
+Infinity% VS SCTR
Economic Moat Analysis
Bank of N.T. Butterfield & Son Ltd possesses a narrow economic moat, primarily derived from its established reputation and strong local presence in key offshore financial centers. The company's long history and deep relationships with clients in these markets create a barrier to entry for new competitors. This established brand recognition and trust are difficult to replicate quickly, providing NTB with a competitive advantage in attracting and retaining customers.
Switching costs also contribute to NTB's narrow moat. While banking services are generally not characterized by high switching costs, the complexity of international financial transactions and the personalized nature of wealth management services can create some stickiness. Clients who rely on NTB for specialized services, such as trust administration and cross-border payments, may be hesitant to switch to a new provider due to the potential disruption and learning curve.
However, NTB's moat is not particularly wide due to the relatively low barriers to entry in the broader financial services industry and the presence of numerous competitors, including larger international banks and specialized wealth management firms. While NTB has a strong local presence, it lacks the scale and resources of its larger rivals, which limits its ability to compete on price and offer a wider range of services.
Furthermore, the regulatory environment in offshore financial centers is constantly evolving, which could erode NTB's competitive advantage. Changes in tax laws, anti-money laundering regulations, and other financial regulations could increase compliance costs and make it more difficult for NTB to operate in these markets. The company's ability to adapt to these changes and maintain its regulatory compliance is crucial to preserving its moat.
The absence of a significant cost advantage further limits the moat. While NTB likely benefits from some economies of scale in its operations, it does not possess a structural cost advantage that would allow it to consistently undercut its competitors on price. Its focus on high-net-worth individuals also means that it is less price-sensitive than other banks.
Financial Health & Profitability
Bank of N.T. Butterfield & Son Ltd demonstrates strong financial health, characterized by consistent profitability, solid margins, and a healthy balance sheet. The company's revenue has grown steadily over the past decade, driven by organic expansion and strategic acquisitions. Net income has also increased significantly, reflecting NTB's ability to generate strong returns on its assets.
NTB's profitability metrics are particularly impressive compared to the financial sector. Its ROE of 81.3% significantly exceeds the sector average of 8.5%, indicating that the company is highly efficient at generating profits from its equity. Its net margin of 37.3% is also substantially higher than the sector average of 17.8%, reflecting NTB's ability to control its costs and generate strong pricing power.
The company's balance sheet is also in good shape, with a substantial cash position of $1.54 billion and a relatively low level of debt of $191.29 million. This strong liquidity provides NTB with the flexibility to pursue strategic acquisitions, invest in its business, and return capital to shareholders. However, the reported Debt/Equity ratio of 1,134.00 is extremely high and warrants further investigation. This figure is a significant outlier compared to the sector average of 115.00 and could indicate a data error or a unique accounting treatment of debt on NTB's balance sheet.
NTB's free cash flow generation has been consistently positive over the past decade, although it has fluctuated from year to year. The company generated $106.30 million in free cash flow in the most recent fiscal year, which is sufficient to cover its dividend payments and other capital needs. The historical data shows a significant variation in FCF, with negative values in FY2015 and FY2017, highlighting the potential for volatility in its cash flow generation.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. While there are some fluctuations from year to year, the overall trend is positive, indicating that NTB is successfully expanding its business and improving its profitability. The gross margin and operating margin have also remained relatively stable over time, suggesting that the company is effectively managing its costs.
Valuation Assessment
Bank of N.T. Butterfield & Son Ltd's valuation presents a mixed picture. On the one hand, the company appears undervalued based on certain multiples, such as its P/E ratio of 10.6x, which is lower than the sector average of 15.5x. Its EV/EBITDA ratio of 0.3x is also significantly below the sector average of 3.5x, suggesting that the company is trading at a discount to its peers. However, these multiples may not fully reflect the company's unique business model and geographic focus.
The company's high ROE of 81.3% could justify a higher valuation, as it indicates that NTB is generating strong returns on its equity. However, it is important to consider whether this high ROE is sustainable over the long term. Changes in interest rates, regulatory environment, or competitive landscape could impact NTB's profitability and reduce its ROE.
The lack of revenue growth data makes it difficult to assess the company's growth prospects. While NTB has historically grown its revenue through organic expansion and acquisitions, it is unclear whether it can maintain this growth rate in the future. The company's concentrated geographic exposure and reliance on specific financial services could limit its growth potential.
Considering the company's strong profitability, stable operations, and healthy balance sheet, we believe that NTB is fairly valued at its current price. While the company may appear undervalued based on certain multiples, the lack of clear growth catalysts and the potential for regulatory changes warrant a cautious approach. The current valuation does not offer a significant margin of safety, which is why we maintain our Hold rating.
A discounted cash flow (DCF) analysis would be beneficial to further refine the valuation. However, without detailed projections of future revenue growth, margins, and capital expenditures, it is difficult to perform a reliable DCF analysis. Investors should conduct their own due diligence and consider their own assumptions about NTB's future performance before making an investment decision.
Risk & Uncertainty
Bank of N.T. Butterfield & Son Ltd faces several specific risks that could impact its financial performance and valuation. One of the most significant risks is its concentrated geographic exposure. The company operates primarily in offshore financial centers, such as Bermuda, the Cayman Islands, and Guernsey, which are sensitive to economic fluctuations and regulatory changes. A downturn in these economies or changes in tax laws could negatively impact NTB's revenue and profitability.
Another risk is the potential for increased competition. The financial services industry is highly competitive, and NTB faces competition from larger international banks and specialized wealth management firms. These competitors may have greater resources and a wider range of services, which could put pressure on NTB's margins and market share. The company's ability to differentiate itself through its strong local presence and personalized service is crucial to mitigating this risk.
Regulatory risk is also a significant concern. Offshore financial centers are subject to increasing scrutiny from regulators around the world, and changes in tax laws, anti-money laundering regulations, and other financial regulations could increase compliance costs and make it more difficult for NTB to operate in these markets. The company's ability to adapt to these changes and maintain its regulatory compliance is essential to its long-term success.
Interest rate risk is another factor to consider. NTB's net interest income is sensitive to changes in interest rates, and a decline in interest rates could reduce its profitability. The company's ability to manage its interest rate exposure through hedging and other strategies is important to mitigating this risk.
Finally, operational risk is always a concern for financial institutions. NTB is exposed to risks such as fraud, cyberattacks, and operational errors, which could result in financial losses and reputational damage. The company's ability to maintain strong internal controls and cybersecurity measures is crucial to mitigating these risks.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNTB's high ROE and net margin demonstrate superior profitability compared to its peers, justifying a premium valuation.
BULL VIEWThe company's strong presence in stable offshore financial centers provides a predictable and resilient revenue stream.
The Bear Case
BEAR VIEWNTB's concentrated geographic exposure makes it vulnerable to economic downturns and regulatory changes in specific jurisdictions.
BEAR VIEWThe lack of significant revenue growth raises concerns about the company's long-term growth prospects and ability to sustain its high profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NTB and 4,400+ other equities.
Bank of N.T. Butterfield & Son Ltd exhibits a 16% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
6.6%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
60.6%
Sector: 0.0%
Operating Margin
Core business profitability
39.4%
Sector: 21.8%
Net Margin
Bottom-line profitability
37.3%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
