Bank of N.T. Butterfield Q2 EPS beats estimates on higher interest income

Bank of NT Butterfield & Son

27/07/2026 21:40

Overview
Bermuda-based banking group's Q2 revenue slightly beat analyst expectations, adjusted EPS beat estimates
Core net income rose yr/yr, driven by higher net interest income and new trust revenue
Company repurchased 0.3 mln shares and closed R&H Guernsey acquisition

Outlook
Bank expects CIBC Caribbean acquisition to close in the first half of 2027
Company says integration activities for R&H Guernsey acquisition are underway

Result Drivers
NET INTEREST INCOME - Higher net interest income driven by increased day count and growth in interest-earning asset volumes, partially offset by higher deposit costs
TRUST REVENUE - New trust revenue from R&H Guernsey acquisition contributed to non-interest income growth
NON-INTEREST EXPENSES - Higher non-interest expenses mainly due to acquisition-related costs and increased salaries and technology expenses

Company press release: ID:nBw3pMVWGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$158.30 mln
$156.94 mln (3 Analysts)
Q2 Adjusted EPS
Beat
$1.58
$1.51 (3 Analysts)
Q2 Adjusted Net Income
 
$63.90 mln
 
Q2 Net Income
 
$46.90 mln
 
Q2 Net Interest Income
 
$95.60 mln
 
Credit Loss Allowance at June 30
 
$27.80 mln
 
Q2 Dividend
 
$0.50
 
Q2 Pretax Profit
 
$48.50 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Bank of NT Butterfield & Son Ltd is $61.00, about 0% above its July 24 closing price of $60.99
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
July 27 - HBT Financial Q2 adjusted EPS beats on CNB acquisition; raises dividend
July 27 - NBT Bancorp Q2 net income more than doubles on Evans acquisition
July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)