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    How Investors May Respond To Bank of N.T. Butterfield & Son (NTB) Expanding Its Share Buyback Program

    Simply Wall St·12/21/2025 23:21:38
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    • Earlier this month, The Bank of N.T. Butterfield & Son Limited announced a new share repurchase program authorizing the buyback of up to 3,000,000 ordinary shares for US$140 million, running through 31 December 2026 and replacing its current plan.
    • This renewed commitment to buybacks highlights how management is using surplus capital to support shareholder returns while balancing other capital allocation priorities.
    • Next, we’ll examine how this expanded share repurchase capacity could influence Butterfield’s investment narrative around earnings, capital return, and risk.

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    Bank of N.T. Butterfield & Son Investment Narrative Recap

    To own Butterfield, you need to be comfortable with a focused offshore bank that leans on wealth management, mortgages, and conservative capital management. The enlarged US$140 million buyback is a supportive short term factor, though it does not directly address key risks like concentrated, potentially non-sticky deposits that could still drive earnings volatility if outflows materialize.

    The latest repurchase authorization, which replaces the existing plan from January 1, 2026, sits alongside a steady dividend track record, including the recent US$0.50 quarterly payout. Together, these moves underline how current excess capital is being returned to shareholders even as analysts watch for pressures on net interest margin and future earnings trends.

    Yet investors should also be aware that concentrated deposit relationships and a fund in receivership could still pose meaningful risks if...

    Read the full narrative on Bank of N.T. Butterfield & Son (it's free!)

    Bank of N.T. Butterfield & Son's narrative projects $594.7 million revenue and $194.4 million earnings by 2028. This requires a 0.3% yearly revenue decline and a $25.0 million earnings decrease from $219.4 million.

    Uncover how Bank of N.T. Butterfield & Son's forecasts yield a $51.50 fair value, in line with its current price.

    Exploring Other Perspectives

    NTB 1-Year Stock Price Chart
    NTB 1-Year Stock Price Chart

    Three members of the Simply Wall St Community currently see fair value for Butterfield between about US$51.50 and US$156.34, reflecting very different expectations. When you set that against concerns about non sticky deposits and possible earnings pressure, it becomes even more important to weigh several viewpoints before deciding how this bank might fit in your portfolio.

    Explore 3 other fair value estimates on Bank of N.T. Butterfield & Son - why the stock might be worth over 3x more than the current price!

    Build Your Own Bank of N.T. Butterfield & Son Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.