NYSE:NTB

Stock Analysis Report

Bank of N.T. Butterfield & Son

Executive Summary

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses.


Snowflake Analysis

Excellent balance sheet established dividend payer.

Share Price & News

How has Bank of N.T. Butterfield & Son's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

NTB

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-52.2%

NTB

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: NTB underperformed the US Banks industry which returned -32.9% over the past year.

Return vs Market: NTB underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NTBIndustryMarket
7 Day1.4%-7.0%-2.6%
30 Day-32.8%-24.6%-15.2%
90 Day-53.0%-41.9%-22.2%
1 Year-49.6%-52.2%-30.8%-32.9%-11.5%-13.3%
3 Year-38.2%-45.4%-21.4%-27.3%13.2%5.7%
5 Yearn/a2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Bank of N.T. Butterfield & Son's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank of N.T. Butterfield & Son undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTB ($17.27) is trading below our estimate of fair value ($55.21)

Significantly Below Fair Value: NTB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTB is good value based on its PE Ratio (5.2x) compared to the Banks industry average (8.6x).

PE vs Market: NTB is good value based on its PE Ratio (5.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NTB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NTB is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of N.T. Butterfield & Son forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTB's earnings are forecast to decline over the next 3 years (-1.3% per year).

Earnings vs Market: NTB's earnings are forecast to decline over the next 3 years (-1.3% per year).

High Growth Earnings: NTB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NTB's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: NTB's revenue is forecast to decline over the next 3 years (-0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTB's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Bank of N.T. Butterfield & Son performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTB has high quality earnings.

Growing Profit Margin: NTB's current net profit margins (33.2%) are lower than last year (37.7%).


Past Earnings Growth Analysis

Earnings Trend: NTB's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: NTB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTB had negative earnings growth (-9.3%) over the past year, making it difficult to compare to the Banks industry average (10.9%).


Return on Equity

High ROE: NTB's Return on Equity (18.4%) is considered low.


Next Steps

Financial Health

How is Bank of N.T. Butterfield & Son's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NTB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: NTB has a low allowance for bad loans.

Low Risk Liabilities: NTB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NTB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NTB's loans are broadly funded by customer deposits.

Level of Bad Loans: NTB has an appropriate level of bad loans (1.28%)


Next Steps

Dividend

What is Bank of N.T. Butterfield & Son's current dividend yield, its reliability and sustainability?

10.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTB's dividend (10.19%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: NTB's dividend (10.19%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

Stable Dividend: NTB's dividend payments have been volatile in the past 10 years.

Growing Dividend: NTB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.8%), NTB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTB's dividends in 3 years are forecast to be covered by earnings (54.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Michael Collins (56yo)

4.58s

Tenure

Mr. Michael W. Collins has been the Chairman of the Board of The Bank of NT Butterfield & Son Limited (Known as Bank Butterfield & Son Ltd) since July 27, 2017 and as its Chief Executive Officer since Sept ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Collins
Chairman & CEO4.58yrsno data0.20% $1.8m
Michael Schrum
Group Chief Financial Officer4.58yrsno data0.23% $2.0m
Noah Fields
Vice President of Investor Relationsno datano datano data
Shaun Morris
Group Chief Legal Officer & General Counsel7.75yrsno data0.11% $981.6k
Siän Dalrymple
Group Head of Compliance3.33yrsno data0.0081% $72.5k
Mark Johnson
VP & Group Head of Communicationsno datano datano data
Elizabeth Bauman
Group Head of Human Resources4.58yrsno data0.060% $535.2k
Michael McWatt
Managing Director of Cayman Islandsno datano data0.049% $434.3k
Jim Parker
Managing Director of Butterfield Trust (Switzerland) Limitedno datano datano data
Michael Neff
Managing Director of Bermuda & International Wealthno datano data0.060% $538.0k

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: NTB's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Collins
Chairman & CEO4.58yrsno data0.20% $1.8m
Pamela Thomas-Graham
Independent Non-Executive Director2.33yrsno data0.0034% $30.0k
James Burr
Lead Independent Director1.5yrsno data0.0028% $24.7k
John Wright
Independent Non-Executive Directorno datano data0.022% $197.0k
Mark Lynch
Independent Director0.50yrno data0.037% $334.2k
Conor O'Dea
Independent Non-Executive Director3.92yrsno data0.12% $1.1m
Alastair William Barbour
Independent Non-Executive Director8.25yrsno data0.023% $202.0k
Caroline Foulger
Independent Non-Executive Director6.75yrsno data0.017% $153.1k
Meroe Park
Independent Non-Executive Director2.5yrsno data0.0036% $32.2k
Michael Covell
Independent Non-Executive Director2yrsno data0.0028% $24.7k

2.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: NTB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Bank of N.T. Butterfield & Son Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • The Bank of N.T. Butterfield & Son Limited
  • 65 Front Street
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTB.BHBER (The Bermuda Stock Exchange)COM NPV(POST REVSPLIT)BMBMDNo data
NTBNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2003
NTB.BHBER (The Bermuda Stock Exchange)YesCommon StockBMBMDNov 2003

Biography

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and non-interest bearing deposits, as well as certificates of deposit. The company’s lending portfolio includes residential mortgage lending, automobile financing, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, private banking, administered banking services, and fiduciary services. Further, it offers debit cards; automated teller machines; personal and business deposit, merchant acquiring, and mobile/online banking services. The company operates through offices in the Cayman Islands, Guernsey, Jersey, the United Kingdom, The Bahamas, Switzerland, Singapore, Mauritius, and Canada, as well as through four branch locations in Bermuda and three branch locations in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:26
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.