NTB

Bank of N.T Butterfield

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

Bermuda

Next Earnings Date

04/22/26

Business Summary

N.T. Butterfield operates as a diversified banking institution generating revenue primarily through lending, deposit gathering, and fee-based financial services. Its cash engine is built on interest spreads and disciplined balance sheet deployment, evidenced by a 20.30% operating margin and strong 37.20% ROIC. The moat is rooted in relationship banking, regulatory positioning, and capital allocation discipline, which are difficult for new entrants to replicate quickly. Institutional ownership of 57.33% suggests the franchise commands credibility among sophisticated investors, reinforcing its competitive standing.

VALUATION

P/E

10.3

Market Cap ($M USD)

$2,237

Forward P/E

8.6

PEG

0.7

PRICE TO SALES

3.9

PRICE TO BOOK

2

EV / EBITDA

-

5-Year Average P/E

DIVIDEND

Yield

3.50%

Annual Payout

$1.94

Payout Ratio

33.50%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

2.60%

Financial Health & Profitability

Earnings Per Share

$5.61

Next Year EPS Growth Estimate

$6.50

Next Year Revenue Growth Estimate

3.10%

Return on Equity (ROE)

20.30%

Operating Margin

39.20%

Debt-to-Equity

0

Piotroski F-Score

7

Altman Z-Score

-

Return on Invested Capital (ROIC)

37.20%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 10.3x earnings and just 8.6x forward earnings, NTB trades like a no-growth regional bank despite a PEG Forward of 0.7, which implies growth is being underpriced relative to its earnings trajectory. The market cap of $2,237M against a 20.30% operating margin and 37.20% ROIC suggests this is not a low-quality balance sheet story but a profitable operator trading at a discount multiple. The absence of an Altman Z-Score limits visibility into balance sheet distress risk, but with Debt/Equity at 39.20%, leverage is not extreme for a bank. On pure valuation math, this looks more like a mispriced GARP setup than a deteriorating franchise.

AI Exposure / Tech Reliance

As a diversified bank, NTB sits in an industry where AI integration primarily enhances underwriting, fraud detection, and operational efficiency rather than disrupts the core model. With a 20.30% operating margin, incremental tech efficiency could meaningfully expand profitability. Banks that adopt AI-driven risk analytics typically strengthen credit quality and cost discipline, reinforcing competitive positioning rather than eroding it.

The Bull Case

A value or GARP investor buys this because the numbers scream capital efficiency at a discounted multiple. A 37.20% ROIC paired with a Piotroski F-Score of 7 indicates strong operational quality and improving financial health, not a distressed lender. The forward P/E of 8.6 combined with a PEG Forward of 0.7 suggests earnings growth is being priced conservatively, while institutional ownership at 57.33% confirms serious capital is already involved. Layer in a 20.30% operating margin and modest 2.60% short interest, and you have a profitable, fundamentally solid bank trading at a multiple that assumes mediocrity.

The Bear Case

The red flags are subtle but real. Return on Equity sits at just 3.10%, which is weak for a financial institution and raises questions about capital efficiency relative to peers. Debt/Equity at 39.20% is manageable but still exposes the firm to rate-cycle sensitivity, and the absence of a reported Altman Z-Score and EPS figure reduces transparency. With a TTM Yield of 0 and a payout ratio figure of $1.94 alongside a Dividend Per Share of 3.50%, the capital return profile lacks clarity, which can undermine confidence in sustainability.

Market Sentiment & Smart Money

Short Interest %

1.20%

Analyst Consensus

2.25

Average Analyst Price Target

$57.33

Institutional Ownership %

74.70%

1-Year Beta

0.64

Insider Buying % (6 Mo)

1.50%%

Distance to 52-Week High

99.00%%

Distance to 52-Week Low

160.50%%