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

Fundamentals

Excellent balance sheet, good value and pays a dividend.

Risks

  • Bank of N.T. Butterfield & Son has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.8%

NYSE:NTB

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-49.4%

NYSE:NTB

-14.2%

US Banks

-0.4%

US Market

NTB underperformed the Banks industry which returned -14.2% over the past year.

NTB underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

NTBIndustryMarket
7 Day-3.8%-2.6%-1.0%
30 Day-18.1%-6.3%-3.3%
90 Day-27.4%-3.5%0.8%
1 Year-47.0%-49.4%-11.8%-14.2%1.9%-0.4%
3 Yearn/a42.2%32.4%39.4%30.4%
5 Yearn/a53.3%36.7%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bank of N.T. Butterfield & Son's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bank of N.T. Butterfield & Son's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bank of N.T. Butterfield & Son is good value based on earnings compared to the US Banks industry average.

Bank of N.T. Butterfield & Son is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bank of N.T. Butterfield & Son is poor value based on expected growth next year.


Price Based on Value of Assets

Bank of N.T. Butterfield & Son is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of N.T. Butterfield & Son's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).

Bank of N.T. Butterfield & Son's earnings are expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Bank of N.T. Butterfield & Son's revenue growth is positive but not above the United States of America market average.

Bank of N.T. Butterfield & Son's earnings growth is positive but not above the United States of America market average.

Bank of N.T. Butterfield & Son's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Bank of N.T. Butterfield & Son will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of N.T. Butterfield & Son has delivered over 20% year on year earnings growth in the past 5 years.

Bank of N.T. Butterfield & Son's 1-year earnings growth is less than its 5-year average (9.6% vs 24.6%)

Bank of N.T. Butterfield & Son's earnings growth has not exceeded the US Banks industry average in the past year (9.6% vs 33.2%).


Return on Equity

Bank of N.T. Butterfield & Son has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Bank of N.T. Butterfield & Son used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of N.T. Butterfield & Son improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Bank of N.T. Butterfield & Son has an acceptable proportion of non-loan assets held.

Bank of N.T. Butterfield & Son has a low allowance for bad loans.

Bank of N.T. Butterfield & Son's liabilities are made up of primarily low risk sources of funding.

Bank of N.T. Butterfield & Son's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of N.T. Butterfield & Son are broadly funded by customer deposits.

Bank of N.T. Butterfield & Son has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

6.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of N.T. Butterfield & Son's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Bank of N.T. Butterfield & Son's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Bank of N.T. Butterfield & Son's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Michael Collins (56yo)

3.9yrs

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 ...


Management Age and Tenure

3.9yrs

Average Tenure

56yo

Average Age

The tenure for the Bank of N.T. Butterfield & Son management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

The average tenure for the Bank of N.T. Butterfield & Son board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jeff Bennett

    Chief Accountant

  • Siän Dalrymple (56yo)

    Group Head of Compliance

    • Tenure: 2.7yrs
  • Michael Collins (56yo)

    Chairman & CEO

    • Tenure: 3.9yrs
  • Shaun Morris (59yo)

    Group Chief Legal Officer & General Counsel

    • Tenure: 7.1yrs
  • Mark Johnson

    VP & Group Head of Communications

  • Bob Moore

    Group Head of Trust and Executive Vice President

  • Mike McWatt (54yo)

    Managing Director of Cayman Islands

  • Michael Schrum (51yo)

    Group Chief Financial Officer

    • Tenure: 3.9yrs
  • Noah Fields

    Vice President of Investor Relations

  • Beth Bauman (59yo)

    Group Head of Human Resources

    • Tenure: 3.9yrs

Board Members

  • Michael Covell (65yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Pamela Thomas-Graham (56yo)

    Non-Executive Director

    • Tenure: 1.7yrs
  • Michael Collins (56yo)

    Chairman & CEO

    • Tenure: 2.1yrs
  • Jim Burr (53yo)

    Lead Independent Director

    • Tenure: 0.8yrs
  • John Wright (78yo)

    Independent Non-Executive Director

    • Tenure: 17.6yrs
  • Meroe Park (53yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Conor O’Dea (60yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Alastair William Barbour (66yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
  • Caroline Foulger (58yo)

    Non-Executive Director

    • Tenure: 6.1yrs

Company Information

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


Key Information

  • Name: The Bank of N.T. Butterfield & Son Limited
  • Ticker: NTB
  • Exchange: NYSE
  • Founded: 1858
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: US$1.415b
  • Shares outstanding: 52.28m
  • Website: Click here

Number of Employees


Location

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

Listings

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

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 check ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:53
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.