NTB Filings — The Bank of N.t. Butterfield & Son Limited - FilingSpy
NTB
The Bank of N.t. Butterfield & Son Limited
A bank that serves individuals, businesses, and wealthy families across Bermuda, the Cayman Islands, and the Channel Islands, offering everyday banking alongside wealth management and trust services. It began in 1758 as a family merchant firm trading Bermuda cedar and wine, and was formally established as a bank in 1858 by Nathaniel T. Butterfield — making it the oldest bank in Bermuda. The "N.T." in its name honors that founder, whose grandfather started the original trading business.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Net income rose 7.2% to $231.9M in 2025 as deposit costs fell and non-interest income grew
growth returned after a one-year decline. rose 4.6% to $606.8M and rose 16.1% to $5.47 as deposit costs dropped 33bps and trust and fee income increased. The bank enters 2026 with a stronger capital base and a new program.
Key takeaways
rose 7.2% to $231.9M, reversing the prior year's 4.1% decline, as deposit costs fell 33bps to 1.50% and rose $12.9M.
improved 5bps to 2.69% because lower funding costs and higher investment yields outweighed a 35bps drop in loan yields.
grew 5.6% to $242.9M, led by trust, asset management, and banking fees, with rising to $134.7B.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Refer to Risk Management discussion in Item 5.A. "Operating Results".
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Refer to Risk Management discussion in Item 5.A. "Operating Results".
Concentrated exposure to Bermuda, Cayman, and Channel Islands/UK economies, coupled with interest rate, credit, and liquidity risks, could materially harm the bank.
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A downturn in the bank's concentrated markets—Bermuda (43% of net ), Cayman (31%), and Channel Islands/UK (18%)—could profoundly impact performance due to undiversified economies reliant on reinsurance, funds, and tourism.
rose 4.6% to $606.8M and rose 7.8% to $238.0M, lifting 1.1 points to 39.2%.
The Board declared $1.88 per share in dividends, up from $1.76, and authorized a 3.0M through December 2026.
CET1 and total capital ratios strengthened to 27.6% and 27.8%, with cash and securities at 65.6% of assets.
fell to $0.0M from $98.7M, a full repayment, while rose 11.9% to $1,141.9M.
What changed
was flagged at 2.64% for 2025; it rose 5bps to 2.69% as deposit costs fell faster than loan yields.
Gross non-accrual loans were flagged at 1.7% in 2024; the 2025 filing does not report the current level.
Total deposits were flagged at $12.7B; the 2025 filing shows $12.7B in deposits carried into the year with net loans at $4.4B, no year-end deposit total stated beyond that.
growth from the Credit Suisse trust base continued, rising 5.6% to $242.9M with trust AUA at $134.7B.
The 2023-flagged Credit Suisse integration is reflected in ongoing trust income; the 2022-flagged acquisition closed in December 2023 and is now in the base.
New risk factors this year: geopolitical conflicts and sanctions effects, and an uncertain legal environment for AI raising compliance costs.
What to watch
against the 2.69% level as deposit costs and loan yields shift in 2026.
Total deposits from the $12.7B level for client outflows or inflows as term-deposit mix evolves.
Gross non-accrual loan ratio for movement from the 1.7% prior-year level amid residential mortgage exposure.
Pace of the new 3.0M through December 2026 against 4.5M bought in 2024.
The absence of a central bank lender of last resort in Bermuda, Cayman, and the Channel Islands makes liquidity management critical, as a sudden deposit withdrawal or funding shortage could lead to bank failure.
Rapidly rising interest rates have created significant in the $5.7 billion investment portfolio ($425.6M in HTM securities), and forced sales to meet liquidity needs would crystalize these losses.
A decline in residential real estate markets poses a major credit risk, as residential mortgages constitute 57% of Bermuda, 58% of Cayman, and 88% of Channel Islands/UK loan portfolios, and limited market data hampers accurate collateral valuation.
The bank faces heightened operational and regulatory risk from reliance on US Dollar clearing banks (BNYM, Wells Fargo), whose failure or withdrawal could sever the bank's ability to transact in US Dollars.
New or emphasized risks include the potential impact of geopolitical conflicts and sanctions (Russia-Ukraine, Middle East) on financial markets, and the uncertain, rapidly evolving legal environment for AI potentially increasing compliance costs and liability.
Butterfield is a full-service bank and wealth manager operating through three geographic segments: Bermuda, Cayman Islands, and Channel Islands & UK.
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The company operates through three geographic segments—Bermuda, Cayman Islands, and Channel Islands & UK—offering banking, wealth management, and fiduciary services.
Banking services include retail, private, and corporate banking, with a deposit-led model holding $12.7 billion in total deposits and a net loan portfolio of $4.4 billion as of December 31, 2025.
Wealth management encompasses trust, private banking, and asset management, targeting high-net-worth individuals and institutions, with $6.9 billion in and $134.7 billion in trust .
The investment portfolio is conservatively managed, primarily in US government and federal agency securities, representing 40.4% of total assets, to manage interest rate risk from excess deposits.
The company faces competition from both local banks and larger global financial institutions, with HSBC in Bermuda and Scotiabank and CIBC FirstCaribbean in the Cayman Islands cited as most significant competitors.
A key operational fact is the reorganization of the Channel Islands business in 2024, transferring all Jersey operations to a branch of the Guernsey entity.