KBW Analyst Maintains Hold Rating for Bank of NT Butterfield & Son with $50 Price Target

KBW analyst Tim Switzer maintains a Hold rating for Bank of NT Butterfield & Son with a price target of $50.00. The company's shares closed at $44.47. Switzer has a 3-star rating and a 61.36% success rate. The analyst consensus is Moderate Buy with a price target consensus of $51.33. The company reported a quarterly revenue of $147.78 million and a net profit of $53.76 million.

Bank of NT Butterfield & Son Ltd (NTB) reported its second-quarter 2025 financial results, showcasing a robust performance with earnings per share (EPS) of $1.25, compared to $1.23 in the previous quarter and $1.09 in the same period last year. The company's adjusted earnings for the quarter ended June 30, 2025, exceeded the mean analyst expectation of $1.25 per share, while revenue rose 2.5% to $146.30 million, slightly missing the expected $146.91 million.

The company's shares have gained 21.4% so far this year and rose by 0.2% in the second quarter. The average analyst rating is "buy" with a breakdown of 3 "strong buy" or "buy," 1 "hold," and no "sell" or "strong sell" recommendations. The consensus for the bank's peer group is also "buy."

Net income for the second quarter of 2025 was $53.3 million, or $1.25 per diluted common share, compared to $53.8 million, or $1.23 per diluted share, in the previous quarter. Core net income was $53.7 million, or $1.26 per diluted share, reflecting a decrease compared to the prior quarter.

The return on average common equity (ROAE) for the second quarter of 2025 was 20.3%, compared to 20.9% in the previous quarter, while the core return on average tangible common equity (ROTCE) was 22.3%, down from 24.2% in the prior quarter. The efficiency ratio for the second quarter of 2025 was 61.3%, compared to 61.8% in the previous quarter.

Net interest income (NII) for the second quarter of 2025 was $89.4 million, a marginal increase over $89.3 million in the previous quarter, driven by lower costs of deposits and higher yields on investments. The net interest margin (NIM) decreased to 2.64%, down 6 basis points from the previous quarter.

Non-interest income for the second quarter of 2025 was $57.0 million, down $1.4 million from the previous quarter, primarily due to lower foreign exchange volumes and custody fees. Non-interest expenses were $91.8 million, up $1.4 million from the previous quarter.

The company's tangible book value per share at the end of the second quarter of 2025 was $23.77, up from $22.94 at the end of the prior quarter. The quarterly cash dividend rate was increased by 14% to $0.50 per share. Butterfield also repurchased 1.1 million shares under its existing share repurchase program and authorized a new program for up to 1.5 million shares.

The company's current total regulatory capital ratio was 26.2%, up from 25.8% at the end of 2024, remaining above the minimum regulatory requirements.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TP22K:0-bank-of-nt-butterfield-son-ltd-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[2] https://www.butterfieldgroup.com/insights-news/news/butterfield-reports-second-quarter-2025-results