Butterfield Q3 EPS beats on higher yields, lower non-core expenses

Bank of NT Butterfield & Son

27/10/2026 20:39

Overview
Bank's Q3 revenue was a slight beat versus analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Net income rose from prior quarter, driven by higher interest and non-interest income

Outlook
Company expects CIBC Caribbean acquisition to close in H1 2027
Company says integration planning for CIBC Caribbean acquisition is progressing as expected

Result Drivers
HIGHER YIELDS - Co said net interest income rose due to reinvestment of securities at higher yields and improved treasury returns, partly offset by loan yield compression and higher deposit costs
NON-INTEREST INCOME - Co said non-interest income rose due to higher banking service revenue from increased card volumes and a non-recurring contractual incentive
LOWER NON-CORE EXPENSES - Co said non-interest expenses fell mainly due to lower acquisition-related costs, partly offset by higher salaries and other expenses

Company press release: ID:nBw8rZzGDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$162 mln
$160.90 mln (3 Analysts)
Q3 Adjusted EPS
Beat
$1.58
$1.57 (3 Analysts)
Q3 Adjusted Net Income
 
$64.20 mln
 
Q3 Net Income
 
$61 mln
 
Q3 Net Interest Income
 
$97.20 mln
 
Q3 Credit Loss Allowance
 
-$27 mln
 
Q3 Dividend
 
$0.50
 
Q3 Pretax Profit
 
$62.60 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 $65.00, about 8.4% above its October 26 closing price of $59.95
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

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Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

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(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.)