Bermuda's Bank of N.T. Butterfield beats Q4 revenue expectations

Overview

• Bermuda-based bank's Q4 revenue rose, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced new share repurchase authorization for up to 3 mln shares

Outlook

• Company authorized repurchase of up to 3.0 mln shares through December 2026

• Butterfield focuses on growth through private trust and bank acquisitions

Result Drivers

• NON-INTEREST INCOME - Increase driven by higher banking fees, trust income, and asset management fees

• NET INTEREST INCOME - Benefited from lower deposit costs and higher yielding investment securities

• CREDIT LOSSES - Lower provision for credit losses contributed to net income increase

Key Details

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 "hold"

• Wall Street's median 12-month price target for Bank of NT Butterfield & Son Ltd is $50.00, about 5.8% below its February 6 closing price of $53.08

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw2Wp5fYa

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