The Bank of N.T. Butterfield & Son (NTB) investor relations material

Executive summary

• Net income for Q2 2026 was $46.9 million ($1.16 per share), while core net income reached $63.9 million ($1.58 per share), reflecting adjustments for non-core items.

• Core return on average tangible common equity was 25.0%; return on average common equity was 16.6%.

• Announced acquisition of CIBC Caribbean, expected to close in H1 2027, and completed R&H Guernsey acquisition, enhancing trust and wealth management capabilities.

• Repurchased 0.3 million shares for $16.1 million; quarterly dividend of $0.50 per share declared.

Financial highlights

• Net interest income for Q2 2026 was $95.6 million, up $2.3 million sequentially and $6.2 million year-over-year.

• Net interest margin was 2.74%, with cost of deposits at 1.25%.

• Non-interest income increased to $63.4 million, up $700K sequentially and $6.4 million year-over-year, driven by trust revenue from R&H onboarding.

• Core non-interest expenses rose to $92.9 million, up 3.3% from prior quarter, mainly due to R&H Guernsey acquisition.

• Total assets at June 30, 2026 were $14.3 billion; average deposits for Q2 2026 were $13.1 billion.

Outlook and guidance

• CIBC Caribbean acquisition expected to close in H1 2027, with integration and regulatory approvals on track.

• Combined pro forma assets post-acquisition projected at $29 billion, with run rate earnings over $400 million and total deposits of $25 billion.

• Core expense run rate projected at $93M–$95M per quarter until CIBC Caribbean deal closes.

• OCI projected to improve by 20% in 12 months and 43% in 24 months as securities mature and rates evolve.