The Bank of N.T. Butterfield & Son Limited Q3 2026 Earnings Recap

Butterfield shares fell 4.7% after the earnings release, with a likely pressure point being the disclosed exit of approximately $500 million in deposits within weeks. Management expects deposits to settle in its previously estimated $12 billion–$12.5 billion range, while core expenses rose 3.5% quarter over quarter.

Key Takeaways

• Net income was $61 million, or $1.50 per share; core net income was $64.2 million, or $1.58 per share. Return on average common equity was 21.3%.
• Net interest margin increased 2 basis points sequentially to 2.76%, though lower loan yields and slightly higher funding costs partly offset stronger securities returns.
• Non-interest income rose $1.4 million sequentially to $64.8 million, supported by banking revenue and foreign-exchange activity; banking revenue included a modest non-recurring contract renewal fee.
• Core non-interest expenses increased 3.5% from the prior quarter. Management expects quarterly core expenses of $93 million–$95 million until the CIBC Caribbean transaction closes.
• Deposits were $12.9 billion at quarter end, but the company had notice that about $500 million would leave within weeks. The acquisition is expected to close in the first half of 2027.