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    New US$140 Million Buyback Plan Might Change The Case For Investing In Butterfield (NTB)

    Simply Wall St·12/14/2025 04:25:38
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    • The Bank of N.T. Butterfield & Son Limited recently authorized a new share repurchase program, allowing the buyback of up to 3,000,000 ordinary shares for US$140 million through December 31, 2026.
    • This sizable capital return plan, which replaces the current buyback program, highlights management’s confidence in the bank’s balance sheet strength and capital flexibility.
    • We’ll now examine how this newly authorized US$140 million share repurchase program could reshape Butterfield’s investment narrative and risk-return profile.

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

    To own Butterfield, you need to believe in its niche as a well capitalized offshore and wealth focused bank, with fee income and prudent risk management offsetting pressure on margins and deposit stability. The new US$140 million buyback supports that equity story but does not materially change the most immediate issues, which remain potential deposit outflows and the sensitivity of net interest income to lower rates.

    The recent 52 week high of US$50.39, alongside the new repurchase plan that replaces the expiring program, ties capital return more closely to the current share price and earnings base. Together, they sit against a backdrop of solid recent profit trends and a business mix that still leans heavily on island mortgage and tourism exposed lending, making any shifts in local economic conditions particularly important to monitor.

    Yet behind the headline buyback, one issue investors should be aware of is the bank’s exposure to large, potentially non sticky deposit relationships and...

    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 implies revenue declining by 0.3% per year and an earnings decrease of $25.0 million from $219.4 million today.

    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

    Simply Wall St Community members have shared three fair value views for Butterfield, ranging from about US$51.50 to US$156.34 per share, highlighting very different expectations. Set against concerns about deposit concentration and potential outflows, these diverging views invite you to compare multiple risk and return scenarios before forming your own conclusion.

    Explore 3 other fair value estimates on Bank of N.T. Butterfield & Son - why the stock might be worth just $51.50!

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

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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.