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Butterfield (NYSE: NTB) lifts Q1 2026 profit, boosts buybacks and dividend

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

The Bank of N.T. Butterfield & Son Limited reported strong first quarter 2026 results with net income of $62.6 million, or $1.53 per diluted share, up from $53.8 million a year earlier. Core net income was $63.2 million, or $1.55 per diluted share. Return on average common equity reached 22.1%, while net interest margin improved to 2.75% as deposit costs fell and investment yields rose. Non-interest income softened versus the prior quarter on seasonal banking fees, but remained above last year. The bank kept expenses tightly controlled, bringing the core efficiency ratio down to 56.4%. Capital levels stayed high, with a total capital ratio of 26.9%. Butterfield returned capital through a $0.50 per-share dividend and repurchased 0.8 million shares for $42.4 million, and closed its acquisition of Rawlinson & Hunter Guernsey, lifting total trust assets under administration to $146 billion.

Positive

  • Year-on-year earnings growth: Net income rose to $62.6 million in Q1 2026 from $53.8 million a year earlier, with diluted EPS increasing from $1.23 to $1.53 and return on common equity at 22.1%, reflecting strong profitability and capital returns.

Negative

  • None.

Insights

Butterfield posts higher year-on-year earnings with strong capital and active capital returns.

Butterfield generated net income of $62.6M in Q1 2026 versus $53.8M a year earlier, with diluted EPS rising from $1.23 to $1.53. Core net income of $63.2M and a return on common equity of 22.1% indicate robust profitability.

Net interest income rose to $93.3M, helped by a lower cost of deposits and higher investment yields, lifting net interest margin to 2.75%. Non-interest income of $62.6M dipped from the seasonally strong prior quarter but exceeded the prior year, while core non-interest expenses declined, improving the core efficiency ratio to 56.4%.

Capitalization remained very strong, with a total capital ratio of 26.9% and a tangible common equity ratio of 7.3% as of March 31, 2026. The bank continued shareholder distributions via a $0.50 per-share dividend and $42.4M in buybacks and closed the Rawlinson & Hunter Guernsey acquisition, supporting growth in its private trust and wealth businesses.

Net income Q1 2026 $62.6M Quarter ended March 31, 2026; up from $53.8M in Q1 2025
Diluted EPS Q1 2026 $1.53 per share Quarter ended March 31, 2026; up from $1.23 in Q1 2025
Net interest income $93.3M Q1 2026, compared with $92.6M in previous quarter
Net interest margin 2.75% Q1 2026; up from 2.69% in prior quarter
Core efficiency ratio 56.4% Quarter ended March 31, 2026; improved from 59.8% in Q1 2025
Total assets $14.4B As of March 31, 2026; up from $14.1B at December 31, 2025
Total capital ratio 26.9% Regulatory capital ratio as of March 31, 2026
Dividend per share $0.50 Quarterly cash dividend for quarter ended March 31, 2026
core net income financial
"Core net income1 for the first quarter of 2026 was $63.2 million"
Core net income is the company’s profit after taxes from its ordinary, ongoing business activities, excluding one-time gains, losses or unusual items. Think of it like a household’s regular salary minus one-off windfalls or repairs — it shows the steady earnings the business can be expected to produce. Investors use it to judge the company’s underlying performance and to compare profitability across periods without distortion from rare events.
net interest margin financial
"Net interest margin (“NIM”) for the first quarter of 2026 was 2.75%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
core efficiency ratio financial
"The core efficiency ratio1 for the first quarter of 2026 was 56.4%"
A core efficiency ratio measures how well a business turns its regular, ongoing revenue into profit after covering everyday operating costs, excluding one-time gains or losses. Think of it like the fuel efficiency of a car: it shows how much “mileage” (profit) the company gets from its steady sources of income, so investors can judge cost control and the sustainability of earnings without being misled by temporary items.
tangible book value per share financial
"Tangible book value per share1 at the end of the first quarter of 2026 was $26.56 per share"
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
non-accrual loans financial
"As at March 31, 2026, the Bank had gross non-accrual loans of $90.2 million"
A non-accrual loan is a loan a lender has decided is unlikely to produce the scheduled interest payments, so the lender stops counting future interest as income and may record the loan at a reduced value. Think of it like renting out a house where the tenant has stopped paying: you stop counting future rent as earnings because it’s uncertain you’ll get it. For investors, a rise in non-accrual loans signals worsening credit quality, lower reported income and higher potential losses that can weaken a bank’s capital and share price.
assets under administration financial
"total assets under administration of $146 billion"
Assets under administration (AUA) is the total market value of clients’ investments and accounts that a financial firm oversees for recordkeeping, reporting, and transaction processing without necessarily deciding how the money is invested. Think of it like a warehouse that stores and tracks other people’s goods: bigger AUA shows a firm’s scale, steady fee potential and client trust, so changes can signal growing business or client withdrawals that matter to investors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did The Bank of N.T. Butterfield (NTB) perform in Q1 2026?
Butterfield reported net income of $62.6 million in Q1 2026, up from $53.8 million a year earlier. Diluted EPS was $1.53, and return on average common equity reached 22.1%, highlighting strong profitability for the quarter.

What were Butterfield’s key margin and revenue metrics for Q1 2026?
Butterfield’s net interest income was $93.3 million in Q1 2026, with a net interest margin of 2.75%. Total net revenue before credit losses was $155.9 million, supported by lower deposit costs and higher yields on investment securities.

What capital position did Butterfield (NTB) report as of March 31, 2026?
As of March 31, 2026, Butterfield reported a total capital ratio of 26.9% and a common equity tier 1 ratio of 26.8%. Total assets were $14.4 billion, and the tangible common equity ratio stood at 7.3%, indicating a strong capital base.

What dividends and share repurchases did Butterfield announce for Q1 2026?
Butterfield’s board declared a quarterly cash dividend of $0.50 per common share, payable May 27, 2026 to shareholders of record May 13, 2026. The bank also repurchased 0.8 million shares during Q1 2026 at a total cost of $42.4 million.

How did Butterfield’s non-interest income and expenses change in Q1 2026?
Non-interest income was $62.6 million, down from $66.3 million in the prior quarter but above $58.4 million a year earlier. Non-interest expenses fell to $90.5 million, improving the core efficiency ratio to 56.4% from 59.8% in Q1 2025.


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of April, 2026
 
Commission File Number: 001-37877
 
The Bank of N.T. Butterfield & Son Limited
(Translation of registrant’s name into English)
 
65 Front Street
Hamilton, HM 12
Bermuda
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ý Form 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o


DOCUMENTS INCLUDED AS PART OF THIS FORM 6-K
 
Attached hereto (i) as Exhibit 99.1 is the earnings release, (ii) as Exhibit 99.2 is the financial statements, and (iii) as Exhibit 99.3 is the earnings call presentation, all for The Bank of N.T. Butterfield & Son Limited for the three months ended March 31, 2026.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date:  April 28, 2026
THE BANK OF N.T. BUTTERFIELD & SON LIMITED
  
  
 By:/s/ Michael Schrum
 Name:Michael Schrum
 Title:President and Group Chief Financial Officer
2


EXHIBIT INDEX
 
Exhibit Description
   
99.1
 
Earnings release - First quarter 2026 results
99.2
Financial Statements - First quarter 2026 results
99.3
Earnings call presentation - First quarter 2026 results
3




newsheaderworkivaa02a.jpg

Butterfield Reports First Quarter 2026 Results
First quarter 2026 highlights:
•Net income of $62.6 million, or $1.53 per share
•Core net income1 of $63.2 million, or $1.55 per share
•Return on average common equity of 22.1% and core return on average tangible common equity1 of 24.1%
•Net interest margin of 2.75%, cost of deposits of 1.24%
•Quarterly cash dividend of $0.50 per share for the quarter ended March 31, 2026
•Repurchases of 0.8 million shares at a total cost of $42.4 million
•Closed previously announced acquisition of Rawlinson & Hunter Guernsey on April 15, 2026

Hamilton, Bermuda - April 28, 2026: The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (BSX: NTB.BH; NYSE: NTB) today announced financial results for the quarter ended March 31, 2026.
Net income for the first quarter of 2026 was $62.6 million, or $1.53 per diluted common share, compared to net income of $63.8 million, or $1.54 per diluted common share, for the previous quarter and $53.8 million, or $1.23 per diluted common share, for the first quarter of 2025. Core net income1 for the first quarter of 2026 was $63.2 million, or $1.55 per diluted common share, compared to $63.8 million, or $1.54 per diluted common share, for the previous quarter and $56.7 million, or $1.30 per diluted common share, for the first quarter of 2025.
The return on average common equity for the first quarter of 2026 was 22.1% compared to 22.7% for the previous quarter and 20.9% for the first quarter of 2025. The core return on average tangible common equity1 for the first quarter of 2026 was 24.1%, compared to 24.6% for the previous quarter and 24.2% for the first quarter of 2025. The efficiency ratio for the first quarter of 2026 was 56.8%, compared to 57.2% for the previous quarter and 61.8% for the first quarter of 2025. The core efficiency ratio1 for the first quarter of 2026 was 56.4% compared with 57.2% in the previous quarter and 59.8% for the first quarter of 2025.
Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, “The first quarter of 2026 was a solid start to the year, with strong financial performance, as well as continuing our M&A driven growth with the acquisition of Rawlinson & Hunter in Guernsey. During the first quarter, we saw sustained demand for our services across banking, wealth management and trust. Net interest income benefited from lower deposit costs, as well as stable deposit volumes in all of our jurisdictions. The reduction in non-interest expenses demonstrates our operational efficiency, particularly during periods of falling interest rates and market volatility.
“Following our announcement of the Rawlinson & Hunter Guernsey acquisition in February, the integration planning has proceeded well and I am pleased to report that the transaction has now successfully closed. We expect our growing private trust business to benefit from its increased scale in Guernsey and further position Butterfield as a leader in the international private trust world with total assets under administration of $146 billion. Acquisitions remain core to Butterfield’s growth strategy, and we continue to target island banks and trust businesses that we believe will add long-term value for shareholders.”


(1)    See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.         1



Net income and core net income1 were down in the first quarter of 2026 versus the seasonally high prior quarter, primarily due to lower non-interest income from banking services and higher provision for credit losses, which were partially offset by lower non-interest expenses.
Net interest income (“NII”) for the first quarter of 2026 was $93.3 million, higher compared to $92.6 million in the previous quarter and $4.0 million higher compared to $89.3 million in the first quarter of 2025. NII was higher during the first quarter of 2026 compared to the prior quarter due to a lower cost of deposits following the reduction of market interest rates by central banks and partially offset by lower loan and treasury yields, coupled with lower day count. NII was higher during the first quarter of 2026 compared to the first quarter of 2025 due to a lower cost of deposits due to the aforementioned reduction in market interest rates, increased investment yields with assets deployed into higher yielding available-for-sale investment securities and the redemption of subordinated debt in the second quarter of 2025, and which was partially offset by lower loan and treasury yields.
Net interest margin (“NIM”) for the first quarter of 2026 was 2.75%, an increase of 6 basis points from the previous quarter at 2.69% and compared favorably to 2.70% in the first quarter of 2025. NIM in the first quarter of 2026 increased compared to the prior quarter and the first quarter of 2025 due to a lower cost of deposits and higher investment yields, partially offset by lower treasury and loan yields as central banks decreased market interest rates.
Non-interest income for the first quarter of 2026 was $62.6 million, a decrease of $3.6 million from $66.3 million in the previous quarter and $4.2 million higher than the $58.4 million in the first quarter of 2025. The decrease in the first quarter of 2026 compared to the prior quarter was due to lower banking revenue due to strong fourth quarter seasonality. Non-interest income in the first quarter of 2026 was higher than the first quarter of 2025 due to higher trust revenue from new clients and fee increases and higher banking revenue due to increased credit card volumes.
Non-interest expenses were $90.5 million in the first quarter of 2026, compared to $93.1 million in the previous quarter and $93.2 million in the first quarter of 2025. Core non-interest expenses1 of $89.9 million in the first quarter of 2026 were lower compared to the $93.1 million incurred in the previous quarter and the $90.3 million in the first quarter of 2025. Core non-interest expenses1 in the first quarter of 2026 were lower compared to the prior quarter due to decreased professional and outside services and technology and communications costs. Core non-interest expenses1 in the first quarter of 2026 were lower compared to the first quarter of 2025 due to decreased property, technology and communications and professional and outside services costs, partially offset by higher salaries and benefits.
Period end deposit balances were higher at $12.9 billion compared to December 31, 2025. Average deposits were $12.8 billion in the quarter ended March 31, 2026, which is relatively flat compared to the prior quarter.
Tangible book value per share1 at the end of the first quarter of 2026 was $26.56 per share, slightly higher than $26.41 per share at the end of the prior quarter. The tangible book value per share1 continues to improve due to OCI burndown and retained earnings, net of dividends.
The Board declared a quarterly cash dividend of $0.50 per common share to be paid on May 27, 2026 to shareholders of record on May 13, 2026. During the first quarter of 2026, Butterfield also repurchased 0.8 million common shares under the Bank's existing share repurchase program.
The current total regulatory capital ratio as at March 31, 2026 was 26.9%, compared to 27.8% as at December 31, 2025. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank.



2

ANALYSIS AND DISCUSSION OF FIRST QUARTER RESULTS
Income statementThree months ended (Unaudited)
(in $ millions)March 31, 2026December 31, 2025March 31, 2025
Non-interest income62.6 66.3 58.4 
Net interest income before provision for credit losses93.3 92.6 89.3 
Total net revenue before provision for credit losses and other gains (losses)155.9 158.9 147.8 
Provision for credit (losses) recoveries(1.4)0.2 0.4 
Total net revenue154.5 159.1 148.2 
Non-interest expenses(90.5)(93.1)(93.2)
Total net income before taxes64.0 66.0 54.9 
Income tax benefit (expense)(1.4)(2.2)(1.2)
Net income62.6 63.8 53.8 
Net earnings per share
Basic
1.57 1.58 1.26 
Diluted
1.53 1.54 1.23 
Per diluted share impact of other non-core items 1
0.02 — 0.07 
Core earnings per share on a fully diluted basis 1
1.55 1.54 1.30 
Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares)
40,881 41,439 43,592 
Key financial ratios
Return on common equity22.1 %22.7 %20.9 %
Core return on average tangible common equity 1
24.1 %24.6 %24.2 %
Return on average assets
1.8 %1.8 %1.6 %
Net interest margin2.75 %2.69 %2.70 %
Core efficiency ratio 1
56.4 %57.2 %59.8 %
(1)See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.
3

Balance SheetAs at
(in $ millions)March 31, 2026December 31, 2025
Cash and cash equivalents1,942 1,709 
Securities purchased under agreements to resell1,018 1,096 
Short-term investments912 757 
Investments in securities5,676 5,688 
Loans, net of allowance for credit losses4,394 4,382 
Premises, equipment and computer software, net161 159 
Goodwill and intangibles, net84 87 
Accrued interest and other assets238 217 
Total assets14,425 14,095 
Total deposits12,882 12,698 
Securities sold under agreements to repurchase132 — 
Accrued interest and other liabilities274 255 
Total liabilities13,289 12,953 
Common shareholders’ equity1,136 1,142 
Total shareholders' equity1,136 1,142 
Total liabilities and shareholders' equity14,425 14,095 
Key Balance Sheet Ratios:March 31, 2026December 31, 2025
Common equity tier 1 capital ratio 26.8 %27.6 %
Tier 1 capital ratio 26.8 %27.6 %
Total capital ratio 26.9 %27.8 %
Leverage ratio
7.5 %7.6 %
Risk-Weighted Assets (in $ millions)4,1393,991
Risk-Weighted Assets / total assets28.7 %28.3 %
Tangible common equity ratio7.3 %7.5 %
Book value per common share (in $)28.6828.58
Tangible book value per share (in $)26.5626.41
Non-accrual loans/gross loans2.0 %2.1 %
Non-performing assets/total assets1.2 %0.8 %
Allowance for credit losses/total loans0.6 %0.6 %

QUARTER ENDED MARCH 31, 2026 COMPARED WITH THE QUARTER ENDED DECEMBER 31, 2025

Net Income
Net income for the quarter ended March 31, 2026 was $62.6 million, down from $63.8 million in the prior quarter.
The change in net income during the quarter ended March 31, 2026 compared to the previous quarter is attributable to the following:
•$3.6 million decrease in non-interest income driven by (i) $3.5 million decrease in banking fees due to prior period seasonality and (ii) $0.9 million decrease in trust revenue driven by reduced time-based and special fees, partially offset by (iii) $0.9 million increase in foreign exchange fees driven by volume;
•$1.6 million increase in allowance for credit losses due to an increased provision on a legacy Bermuda commercial facility and partially offset by the release of a provision on a residential mortgage facility in the Channel Islands and UK segment;
•$2.6 million decrease in non-interest expenses mainly due to (i) $0.8 million decrease in professional and outside services for project work; (ii) $1.2 million decrease in technology and communication costs; (iii) $0.8 million decrease in property cost expenses and (iv) $0.6 million decrease in non-employee benefit costs, partially offset by (v) $1.5 million increase in payroll taxes related to the annual vesting of share compensation; and
•$0.8 million decrease in income tax expenses mainly due to lower taxable income in the Channel Islands and UK segment.


4

Non-Core Items1
Non-core items resulted in expenses, net of gains, of $0.6 million for the first quarter of 2026. Non-core items for the quarter are comprised principally of acquisition-related expenses.
Management does not believe that comparative period expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business.
(1)See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.

BALANCE SHEET COMMENTARY AT MARCH 31, 2026 COMPARED WITH DECEMBER 31, 2025
Total Assets
Total assets of the Bank were $14.4 billion at March 31, 2026, an increase of $0.3 billion from December 31, 2025. The Bank maintained a highly liquid position at March 31, 2026, with $9.5 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 66.2% of total assets, compared with 65.6% at December 31, 2025.
Loans Receivable
The loan portfolio totaled $4.4 billion at March 31, 2026, relatively flat compared to December 31, 2025.
The allowance for credit losses at March 31, 2026 totaled $26.3 million, an increase compared to $25.4 million at December 31, 2025.
The loan portfolio represented 30.5% of total assets at March 31, 2026 (December 31, 2025: 31.1%), while loans as a percentage of total deposits was 34.1% at March 31, 2026 (December 31, 2025: 34.5%). Both ratios remain relatively stable at March 31, 2026 compared to December 31, 2025.
As at March 31, 2026, the Bank had gross non-accrual loans of $90.2 million, representing 2.0% of total gross loans, a decrease of $1.2 million from $91.3 million, or 2.1% of total loans, at December 31, 2025. The decrease in non-accrual loans was driven by a few residential mortgage facilities migrating back to accrual status.
Investment in Securities
The investment portfolio was $5.7 billion at March 31, 2026, which remains relatively stable compared to December 31, 2025 balances.
The investment portfolio is made up of high-quality assets with 100% invested in A-or-better-rated securities. The investment book yield was 2.78% during the quarter ended March 31, 2026 compared with 2.72% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio increased to $99.7 million, compared with total net unrealized losses of $89.4 million at December 31, 2025, as a result of rising long-term US dollar interest rates.
Deposits
Average total deposit balances were $12.8 billion for the quarter ended March 31, 2026, which is relatively flat compared to December 31, 2025. Period end balances as at March 31, 2026 were $12.9 billion, higher compared to $12.7 billion in December 31, 2025.

5

Average Balance Sheet2
For the three months ended
March 31, 2026December 31, 2025March 31, 2025
(in $ millions)
Average
balance
($)
Interest
($)
Average
rate
(%)
Average
balance
($)
Interest
($)
Average
rate
(%)
Average
balance
($)
Interest
($)
Average
rate
(%)
Assets
Cash and cash equivalents and short-term investments3,646.1 30.1 3.35 3,588.7 31.1 3.44 3,519.3 34.5 3.98 
Investment in securities5,714.1 39.2 2.78 5,686.1 39.0 2.72 5,462.6 36.1 2.68 
   Available-for-sale2,742.0 22.3 3.31 2,657.1 21.9 3.27 2,247.5 17.8 3.21 
   Held-to-maturity2,972.1 16.8 2.30 3,029.0 17.1 2.24 3,215.1 18.3 2.31 
Loans4,399.8 63.4 5.84 4,396.3 66.6 6.01 4,455.3 69.4 6.32 
   Commercial1,171.2 16.6 5.75 1,188.6 18.3 6.11 1,320.3 20.6 6.32 
   Consumer3,228.6 46.8 5.88 3,207.7 48.3 5.98 3,135.0 48.8 6.32 
Interest earning assets13,760.0 132.7 3.91 13,671.1 136.8 3.97 13,437.3 140.0 4.23 
Other assets455.9 444.9 430.7 
Total assets14,215.8 14,116.0 13,868.0 
Liabilities
Deposits - interest bearing10,143.9 (39.3)(1.57)10,125.1 (44.1)(1.73)9,853.4 (49.1)(2.02)
Securities sold under agreements to repurchase
6.6 (0.1)(3.99)1.2 — (4.53)16.3 (0.2)(4.42)
Long-term debt— — — — — — 98.7 (1.4)(5.63)
Interest bearing liabilities10,150.5 (39.4)(1.57)10,126.3 (44.2)(1.73)9,968.5 (50.7)(2.06)
Non-interest bearing current accounts2,684.5 2,645.9 2,622.4 
Other liabilities249.5 238.2 263.6 
Total liabilities13,084.5 13,010.3 12,854.4 
Shareholders’ equity1,131.4 1,105.6 1,013.5 
Total liabilities and shareholders’ equity14,215.8 14,116.0 13,868.0 
Non-interest bearing funds net of
   non-interest earning assets
   (free balance)		3,609.5 3,544.8 3,468.8 
Net interest margin93.3 2.75 92.6 2.69 89.3 2.70 
(2) Averages are based upon daily averages for the periods indicated.

Assets Under Administration and Assets Under Management
Total assets under administration for the trust and custody businesses were $137.4 billion and $31.8 billion, respectively, at March 31, 2026, while assets under management were $6.8 billion at March 31, 2026. This compares with $134.7 billion, $32.3 billion and $6.9 billion, respectively, at December 31, 2025.

6

Reconciliation of US GAAP Results to Core Earnings
The table below shows the reconciliation of net income in accordance with US GAAP to core earnings, a non-GAAP measure, which excludes certain significant items that are included in our US GAAP results of operations. We focus on core net income, which we calculate by adjusting net income to exclude certain income or expense items that are not representative of our business operations, or “non-core”. Core net income includes revenue, gains, losses and expense items incurred in the normal course of business. We believe that expressing earnings and certain other financial measures excluding these non-core items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Bank and predicting future performance. We believe that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as management.
Core EarningsThree months ended
(in $ millions except per share amounts)March 31, 2026December 31, 2025March 31, 2025
Net income62.6 63.8 53.8 
Non-core items
Non-core expenses
Early retirement program, voluntary separation, redundancies and other non-core compensation costs— — 2.9 
Business acquisition costs0.6 — — 
Total non-core expenses0.6 — 2.9 
Total non-core items0.6 — 2.9 
Core net income63.2 63.8 56.7 
Average common equity1,148.0 1,117.3 1,041.3 
Less: average goodwill and intangible assets(86.0)(87.2)(89.2)
Average tangible common equity1,062.0 1,030.1 952.1 
Core earnings per share fully diluted 1.55 1.54 1.30 
Return on common equity22.1 %22.7 %20.9 %
Core return on average tangible common equity24.1 %24.6 %24.2 %
Shareholders' equity1,136.1 1,141.9 1,057.8 
Less: goodwill and intangible assets(83.9)(86.8)(89.7)
Tangible common equity1,052.2 1,055.1 968.1 
Basic participating shares outstanding (in millions)39.6 39.9 42.2 
Tangible book value per common share26.56 26.41 22.94 
Non-interest expenses90.5 93.1 93.2 
Less: non-core expenses(0.6)— (2.9)
Less: amortization of intangibles(2.0)(2.2)(1.9)
Core non-interest expenses before amortization of intangibles88.0 90.9 88.4 
Core revenue before other gains and losses and provision for credit losses155.9 158.9 147.8 
Core efficiency ratio56.4 %57.2 %59.8 %

7

Conference Call Information:
Butterfield will host a conference call to discuss the Bank’s results on Wednesday, April 29, 2026 at 10:00 a.m. Eastern Time. Callers may access the conference call by dialing +1 (844) 855-9501 (toll-free) or +1 (412) 858-4603 (international) ten minutes prior to the start of the call and referencing the Conference ID: Butterfield Group. A live webcast of the conference call, including a slide presentation, will be available in the investor relations section of Butterfield’s website at www.butterfieldgroup.com. A replay of the call will be archived on the Butterfield website for 12 months.
About Non-GAAP Financial Measures:
Certain statements in this release involve the use of non-GAAP financial measures. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with US GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with US GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See "Reconciliation of US GAAP Results to Core Earnings" for additional information.
Forward-Looking Statements:
Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, our intention to, identify and enter into acquisitions or other strategic transactions and the timing and anticipated benefits thereof (including with respect to the acquisition of R&H Guernsey), and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. These risks and uncertainties may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including Butterfield’s ability to realize the anticipated benefits of the acquisition of R&H Guernsey in the expected time-frames or at all; Butterfield’s ability to successfully integrate R&H Guernsey’s operations into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the risk that revenues following the acquisition of R&H Guernsey may be lower than expected; the risk that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the acquisition; risks associated with the disruption of management’s attention from ongoing business operations due to the acquisition; and the outcome of any legal proceedings that may be instituted against Butterfield or R&H Guernsey. Other factors that may impact Butterfield’s future results, performance or achievements include worldwide economic conditions (including economic growth and general business conditions) and fluctuations of interest rates, inflation, a decline in Bermuda’s sovereign credit rating, any sudden liquidity crisis, the successful entry into, completion and integration of acquisitions or the realization of the anticipated benefits of such acquisitions, success in business retention (including the retention of relationships associated with our acquisition of R&H Guernsey), potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements.

All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. BF-All
Presentation of Financial Information:
Certain monetary amounts, percentages and other figures included in this release have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.
About Butterfield:
Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.
Investor Relations Contact:                Media Relations Contact:        
Noah Fields                    Nicky Stevens
Investor Relations                 Group Strategic Marketing & Communications
The Bank of N.T. Butterfield & Son Limited        The Bank of N.T. Butterfield & Son Limited        
Phone: (441) 299 3816                Phone: (441) 299 1624    
E-mail: noah.fields@butterfieldgroup.com         E-mail: nicky.stevens@butterfieldgroup.com    
8

bntb_arxcoverxq120261a.jpg


INDEX TO FINANCIAL STATEMENTS
Unaudited Consolidated Financial StatementsPage
Consolidated Balance Sheets (unaudited) as of March 31, 2026 and December 31, 2025
2
Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2026 and 2025
3
Consolidated Statements of Comprehensive Income (unaudited) for the Three Months Ended March 31, 2026 and 2025
4
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) for the Three Months Ended March 31, 2026 and 2025
5
Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2026 and 2025
6
Notes to the Consolidated Financial Statements (unaudited)
7
1
The Bank of N.T. Butterfield & Son Limited
Consolidated Balance Sheets (unaudited)
(In thousands of US dollars, except share and per share data)

As at
March 31, 2026December 31, 2025
Assets
Cash and demand deposits with banks - Non-interest bearing120,175 105,440 
Demand deposits with banks - Interest bearing178,487 171,201 
Cash equivalents - Interest bearing1,643,226 1,432,295 
Cash and cash equivalents1,941,888 1,708,936 
Securities purchased under agreements to resell1,017,737 1,096,238 
Short-term investments912,430 756,543 
Investment in securities
Available-for-sale at fair value (amortized cost: $2,836,355 (2025: $2,785,608))2,736,645 2,696,253 
Held-to-maturity (fair value: $2,506,590 (2025: $2,566,470))2,939,086 2,992,052 
Total investment in securities5,675,731 5,688,305 
Loans
Loans4,420,327 4,407,787 
Allowance for credit losses(26,276)(25,376)
Loans, net of allowance for credit losses4,394,051 4,382,411 
Premises, equipment and computer software, net161,495 158,504 
Goodwill24,989 25,385 
Other intangible assets, net58,935 61,412 
Equity method investments6,753 6,755 
Accrued interest and other assets230,749 210,405 
Total assets14,424,758 14,094,894 
Liabilities
Deposits
Non-interest bearing2,636,446 2,701,145 
Interest bearing10,245,521 9,996,923 
Total deposits12,881,967 12,698,068 
Securities sold under agreements to repurchase132,300 — 
Employee benefit plans84,266 84,466 
Accrued interest and other liabilities190,134 170,509 
Total other liabilities 406,700 254,975 
Total liabilities13,288,667 12,953,043 
Commitments, contingencies and guarantees (Note 10)
Shareholders' equity
Common share capital (BMD 0.01 par; authorized voting ordinary shares 2,000,000,000 and
   non-voting ordinary shares 6,000,000,000) issued and outstanding: 39,610,581 (2025: 39,948,264)
396 399 
Additional paid-in capital838,761 851,223 
Retained earnings512,219 494,384 
Accumulated other comprehensive income (loss)(215,285)(204,155)
Total shareholders’ equity1,136,091 1,141,851 
Total liabilities and shareholders’ equity14,424,758 14,094,894 
The accompanying notes are an integral part of these consolidated financial statements.
2
The Bank of N.T. Butterfield & Son Limited
Consolidated Statements of Operations (unaudited)
(In thousands of US dollars, except per share data)


Three months ended
March 31, 2026March 31, 2025
Non-interest income
Asset management10,440 9,549 
Banking16,285 15,076 
Foreign exchange revenue14,569 13,680 
Trust16,662 15,628 
Custody and other administration services3,702 3,509 
Other non-interest income986 988 
Total non-interest income62,644 58,430 
Interest income
Interest and fees on loans63,397 69,435 
Investments (none of the investment securities are intrinsically tax-exempt)
Available-for-sale22,349 17,763 
Held-to-maturity16,823 18,307 
Cash and cash equivalents, securities purchased under agreements to resell and short-term investments30,110 34,507 
Total interest income132,679 140,012 
Interest expense
Deposits39,330 49,136 
Long-term debt— 1,371 
Securities sold under agreements to repurchase65 178 
Total interest expense39,395 50,685 
Net interest income before provision for credit losses93,284 89,327 
Provision for credit (losses) recoveries (1,448)379 
Net interest income after provision for credit losses91,836 89,706 
Net other gains (losses)4 25 
Total other gains (losses)4 25 
Total net revenue154,484 148,161 
Non-interest expense
Salaries and other employee benefits45,034 45,528 
Technology and communications15,416 16,009 
Professional and outside services5,533 5,444 
Property7,670 8,721 
Indirect taxes6,948 6,494 
Non-service employee benefits expense1,049 1,337 
Marketing1,753 1,775 
Amortization of intangible assets1,981 1,897 
Other expenses5,125 6,013 
Total non-interest expense90,509 93,218 
Net income before income taxes 63,975 54,943 
Income tax benefit (expense)(1,352)(1,179)
Net income62,623 53,764 
Earnings per common share
Basic earnings per share1.57 1.26 
Diluted earnings per share1.53 1.23 
The accompanying notes are an integral part of these consolidated financial statements.

3
The Bank of N.T. Butterfield & Son Limited
Consolidated Statements of Comprehensive Income (unaudited)
(In thousands of US dollars)

Three months ended
March 31, 2026March 31, 2025
Net income62,623 53,764 
Other comprehensive income (loss), net of taxes
Unrealized net gains (losses) on translation of net investment in foreign operations
(3,216)3,931 
Net changes on investments transferred to held-to-maturity
1,805 1,777 
Unrealized net gains (losses) on available-for-sale investments(10,375)31,911 
Employee benefit plans adjustments656 361 
Other comprehensive income (loss), net of taxes(11,130)37,980 
Total comprehensive income (loss) 51,493 91,744 
The accompanying notes are an integral part of these consolidated financial statements.

4
The Bank of N.T. Butterfield & Son Limited
Consolidated Statements of Changes in Shareholders' Equity (unaudited)

Three months ended
March 31, 2026March 31, 2025
Number of sharesIn thousands of
US dollars		Number of sharesIn thousands of
US dollars
Common share capital issued and outstanding
Balance at beginning of period39,948,264 399 43,537,979 435 
Retirement of shares(827,327)(8)(1,094,727)(11)
Issuance of common shares489,644 5 376,839 4 
Balance at end of period39,610,581 396 42,820,091 428 
Additional paid-in capital
Balance at beginning of period851,223 916,394 
Share-based compensation5,155 5,341 
Share-based settlements18 40 
Retirement of shares(17,629)(23,042)
Issuance of common shares, net of underwriting discounts and commissions(6)(4)
Balance at end of period838,761 898,729 
Retained earnings
Balance at beginning of period494,384 422,461 
Net Income for the period62,623 53,764 
Common share cash dividends declared and paid, $0.50 per share (2025: $0.44 per share)
(19,991)(18,769)
Retirement of shares(24,797)(17,857)
Balance at end of period512,219 439,599 
Treasury common shares
Balance at beginning of period— — 619,212 (23,063)
Purchase of treasury common shares827,327 (42,434)1,094,727 (41,358)
Retirement of shares(827,327)42,434 (1,094,727)40,910 
Balance at end of period— — 619,212 (23,511)
Accumulated other comprehensive income (loss)
Balance at beginning of period(204,155)(295,415)
Other comprehensive income (loss), net of taxes
(11,130)37,980 
Balance at end of period(215,285)(257,435)
Total shareholders' equity1,136,091 1,057,810 
The accompanying notes are an integral part of these consolidated financial statements.
5
The Bank of N.T. Butterfield & Son Limited
Consolidated Statements of Cash Flows (unaudited)
(In thousands of US dollars)

Three months ended
March 31, 2026March 31, 2025
Cash flows from operating activities
Net income 62,623 53,764 
Adjustments to reconcile net income to operating cash flows
Depreciation, accretion and amortization13,558 12,569 
Provision for credit losses (recoveries) 1,448 (379)
Share-based payments and settlements5,173 5,381 
(Increase) decrease in carrying value of equity method investments(13)(80)
Dividends received from equity method investments15 30 
Changes in operating assets and liabilities
(Increase) decrease in accrued interest receivable and other assets(21,200)19,360 
Increase (decrease) in employee benefit plans, accrued interest payable and other liabilities(2,696)(27,825)
Cash provided by (used in) operating activities58,908 62,820 
Cash flows from investing activities
(Increase) decrease in securities purchased under agreements to resell having original maturities of 3 months of less(22,296)322,979 
Securities purchased under agreements to resell having original maturities of more than 3 months: purchases(398,805)(249,695)
Securities purchased under agreements to resell having original maturities of more than 3 months: proceeds from maturities481,925 419,578 
Short-term investments other than restricted cash: proceeds from maturities and sales313,675 409,615 
Short-term investments other than restricted cash: purchases(471,191)(593,864)
Available-for-sale investments: proceeds from maturities and pay downs138,398 137,355 
Available-for-sale investments: purchases(189,713)(97,155)
Held-to-maturity investments: proceeds from maturities and pay downs53,550 56,450 
Net (increase) decrease in loans(46,974)12,675 
Additions to premises, equipment and computer software(8,596)(7,402)
Cash provided by (used in) investing activities(150,027)410,536 
Cash flows from financing activities
Net increase (decrease) in deposits257,303 (241,478)
Net increase (decrease) in securities sold under agreements to repurchase having original maturities of 3 months of less132,748 (90,032)
Common shares repurchased(42,434)(41,358)
Cash dividends paid on common shares(19,991)(18,769)
Cash provided by (used in) financing activities327,626 (391,637)
Net effect of exchange rates on cash, cash equivalents and restricted cash(10,374)15,846 
Net increase (decrease) in cash, cash equivalents and restricted cash226,133 97,565 
Cash, cash equivalents and restricted cash: beginning of period1,776,683 2,088,542 
Cash, cash equivalents and restricted cash: end of period2,002,816 2,186,107 
Components of cash, cash equivalents and restricted cash at end of period
Cash and cash equivalents1,941,888 2,097,344 
Restricted cash included in short-term investments on the consolidated balance sheets60,928 88,763 
Total cash, cash equivalents and restricted cash at end of period2,002,816 2,186,107 
Supplemental disclosure of non-cash items
Initial recognition of right-of-use assets and operating lease liabilities— 766 
The accompanying notes are an integral part of these consolidated financial statements.
6
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited)
(In thousands of US dollars, unless otherwise stated)

Note 1: Nature of business

The Bank of N.T. Butterfield & Son Limited (“Butterfield”, the “Bank” or the “Company”) is incorporated under the laws of Bermuda and has a banking license under the Banks and Deposit Companies Act, 1999 (“the Act”). Butterfield is regulated by the Bermuda Monetary Authority (“BMA”), which operates in accordance with Basel principles.

Butterfield is a full service bank and wealth manager headquartered in Hamilton, Bermuda. The Bank operates its business through three geographic segments: Bermuda, Cayman, and the Channel Islands and the UK, where its principal banking operations are located and where it offers specialized financial services. Butterfield offers banking services, comprised of retail and corporate banking, and wealth management, which consists of trust, private banking, and asset management. In the Bermuda, Cayman, and Channel Islands and the UK segments, Butterfield offers both banking and wealth management services. Butterfield also has operations in the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland, which are included in our Other segment.

The Bank's common shares trade on the New York Stock Exchange under the symbol "NTB" and on the Bermuda Stock Exchange ("BSX") under the symbol "NTB.BH".

Note 2: Significant accounting policies

The accompanying unaudited interim consolidated financial statements of the Bank have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and should be read in conjunction with the Bank’s audited financial statements for the year ended December 31, 2025.

In the opinion of Management, these unaudited interim consolidated financial statements reflect all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair statement of the Bank’s financial position and results of operations as at the end of and for the periods presented. The Bank’s results for interim periods are not necessarily indicative of results for the full year. Certain prior year figures have been reclassified to agree to current period presentation.

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting period, and actual results could differ from those estimates. Management believes that the most critical accounting estimates upon which the financial condition depends, and which involve the most complex or subjective decisions or assessments, are as follows:
•Allowance for credit losses
•Fair value of financial instruments
•Impairment of goodwill and intangibles
•Employee benefit plans

New Accounting Pronouncements
There were no accounting developments issued during the three months ended March 31, 2026 or accounting standards pending adoption which impacted the Bank.

Note 3: Cash and cash equivalents
March 31, 2026December 31, 2025
Non-interest bearing
Cash and demand deposits with banks120,175 105,440 
Interest bearing
Demand deposits with banks178,487 171,201 
Cash equivalents1,643,226 1,432,295 
Sub-total - Interest bearing1,821,713 1,603,496 
Total cash and cash equivalents1,941,888 1,708,936 

Note 4: Short-term investments
March 31, 2026December 31, 2025
Unrestricted
Maturing within three months319,114 321,566 
Maturing between three to six months229,191 223,239 
Maturing between six to twelve months303,197 143,991 
Total unrestricted short-term investments851,502 688,796 
Affected by drawing restrictions related to minimum reserve and derivative margin requirements
Interest earning demand and term deposits60,928 67,747 
Total restricted short-term investments60,928 67,747 
Total short-term investments912,430 756,543 
7
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)


Note 5: Investment in securities

Amortized Cost, Carrying Amount and Fair Value
On the consolidated balance sheets, available-for-sale ("AFS") investments are carried at fair value and held-to-maturity ('HTM') investments are carried at amortized cost.
March 31, 2026December 31, 2025
Amortized
 cost		Gross
 unrealized
 gains		Gross
 unrealized
 losses		Fair valueAmortized
 cost		Gross
 unrealized
 gains		Gross
 unrealized
 losses		Fair value
Available-for-sale
US government and federal agencies2,822,113 5,862 (104,518)2,723,457 2,770,749 12,549 (100,827)2,682,471 
Residential mortgage-backed securities14,242 — (1,054)13,188 14,859 — (1,077)13,782 
Total available-for-sale 2,836,355 5,862 (105,572)2,736,645 2,785,608 12,549 (101,904)2,696,253 
Held-to-maturity¹
US government and federal agencies2,939,086 428 (432,924)2,506,590 2,992,052 857 (426,439)2,566,470 
Total held-to-maturity2,939,086 428 (432,924)2,506,590 2,992,052 857 (426,439)2,566,470 
¹For the three months ended March 31, 2026 and March 31, 2025, impairments recognized in other comprehensive income for HTM investments were Nil.

Investments with Unrealized Loss Positions
The Bank does not believe that the AFS debt securities that were in an unrealized loss position as of March 31, 2026, comprising 176 securities representing 71% of the AFS portfolios' carrying value (December 31, 2025: 156 and 52.1%), represent credit losses. Total gross unrealized AFS losses were 5.4% of the fair value of the affected securities (December 31, 2025: 7.3%).

The Bank’s HTM debt securities are comprised of US government and federal agencies securities and have a zero credit loss assumption under the Current Expected Credit Loss ("CECL") model. HTM debt securities that were in an unrealized loss position as of March 31, 2026, were comprised of 218 securities representing 98.8% of the HTM portfolios’ carrying value (December 31, 2025: 218 and 98.8%). Total gross unrealized HTM losses were 17.5% of the fair value of affected securities (December 31, 2025: 16.9%).

Management does not intend to sell and it is likely that management will not be required to sell the securities prior to the anticipated recovery of the cost of these securities. Unrealized losses were attributable primarily to changes in market interest rates, relative to when the investment securities were purchased, and not due to a decrease in the credit quality of the investment securities. The issuers continue to make timely principal and interest payments on the securities. The following describes the processes for identifying credit impairment in security types with the most significant unrealized losses as shown in the preceding tables.

Management believes that all the US government and federal agencies securities do not have any credit losses, given the explicit and implicit guarantees provided by the US federal government.

Management believes that all the Non-US governments debt securities, which have now matured, did not have any credit losses, given the explicit guarantee provided by the issuing government.

Investments in Asset-backed securities - Student loans were composed of securities collateralized by Federal Family Education Loan Program ("FFELP") loans. FFELP loans benefit from a US federal government guarantee of at least 97% of defaulted principal and accrued interest, with additional credit support provided in the form of over-collateralization, subordination and excess spread, which collectively total in excess of 100%.

Investments in Residential mortgage-backed securities relate to 13 US prime securities (December 31, 2025: 13) which are rated AAA and may possess structural features of securitization, such as subordination, excess spread, over collateralization or other forms of credit enhancement. No credit losses were recognized on these securities as the weighted average credit support and the weighted average loan-to-value ratios range from 15.6% - 50.1% and 41.7% - 51.7%, respectively. Current credit support is significantly greater than any delinquencies experienced on the underlying mortgages.
In the following tables, debt securities with unrealized losses that are not deemed to be credit impaired and for which an allowance for credit losses has not been recorded are categorized as being in a loss position for "less than 12 months" or "12 months or more" based on the point in time that the fair value most recently declined below the amortized
cost basis.
8
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Less than 12 months12 months or more
March 31, 2026Fair
value		Gross
 unrealized
 losses		Fair
value		Gross
unrealized
losses		Total
 fair value		Total gross
unrealized
losses
Available-for-sale securities with unrealized losses
US government and federal agencies792,818 (5,051)1,136,893 (99,467)1,929,711 (104,518)
Residential mortgage-backed securities— — 13,188 (1,054)13,188 (1,054)
Total available-for-sale securities with unrealized losses792,818 (5,051)1,150,081 (100,521)1,942,899 (105,572)
Held-to-maturity securities with unrealized losses
US government and federal agencies1,401 (21)2,470,736 (432,903)2,472,137 (432,924)
Less than 12 months12 months or more
December 31, 2025Fair
value		Gross
 unrealized
 losses		Fair
value		Gross
unrealized
losses		Total
fair value		Total gross
unrealized
losses
Available-for-sale securities with unrealized losses
US government and federal agencies94,588 (120)1,296,411 (100,707)1,390,999 (100,827)
Residential mortgage-backed securities— — 13,782 (1,077)13,782 (1,077)
Total available-for-sale securities with unrealized losses94,588 (120)1,310,193 (101,784)1,404,781 (101,904)
Held-to-maturity securities with unrealized losses
US government and federal agencies— — 2,530,638 (426,439)2,530,638 (426,439)

Investment Maturities
The following table presents the remaining term to contractual maturity of the Bank’s securities. The actual maturities may differ as certain securities offer prepayment options to the borrowers.
Remaining term to maturity
March 31, 2026Within 1 year1 to 5
 years		5 to 10
 years		Over
10 years		No specific or single
 maturity		Carrying
 amount
Available-for-sale
US government and federal agencies490,576 866,387 — — 1,366,494 2,723,457 
Residential mortgage-backed securities— — — — 13,188 13,188 
Total available-for-sale490,576 866,387 — — 1,379,682 2,736,645 
Held-to-maturity
US government and federal agencies— — — — 2,939,086 2,939,086 

Pledged Investments
The Bank pledges certain US government and federal agencies investment securities to further secure the Bank's issued customer deposit products. The secured party does not have the right to sell or repledge the collateral.
March 31, 2026December 31, 2025
Pledged investments - secured customer deposit product
 Amortized
 cost 		 Fair
 value 		 Amortized
 cost 		 Fair
 value
Available-for-sale18,148 17,168 19,184 18,331 
Held-to-maturity99,088 88,625 96,811 87,154 

The Bank also pledges certain non-US governments debt investment securities to secure the Bank's repurchase agreements. Where the secured party has the right to sell or
repledge the collateral, the Bank discloses such pledged financial assets separately in the accompanying consolidated balance sheets.

Taxability of Interest Income
None of the investments' interest income have received a specific preferential income tax treatment in any of the jurisdictions in which the Bank owns investments.









9
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Note 6: Loans

The principal means of securing residential mortgages, personal, credit card and business loans are entitlements over assets and guarantees. Mortgage loans are generally repayable over periods of up to thirty years and personal and business loans are generally repayable over terms not exceeding five years. Government loans are repayable over a variety of terms which are individually negotiated. Amounts owing on credit cards are revolving and typically a minimum amount is due within 30 days from billing. The credit card portfolio is managed as a single portfolio and includes consumer and business cards. The effective yield on total loans as at March 31, 2026 is 5.76% (December 31, 2025: 5.81%). The interest receivable on total loans as at March 31, 2026 is $10.5 million (December 31, 2025: $11.1 million). The interest receivable is included in Accrued interest and other assets on the consolidated balance sheets and is excluded from all loan amounts disclosed in this note.

Loans' Credit Quality
The four credit quality classifications set out in the following tables are defined below and describe the credit quality of the Bank's lending portfolio. These classifications each encompass a range of more granular internal credit rating grades. Loans' internal credit ratings are assigned by the Bank's customer relationship managers as well as members of the Bank's jurisdictional and Group Credit Committees. The borrowers' financial condition is documented at loan origination and maintained periodically thereafter at a frequency which can be up to monthly for certain loans. The loans' performing status, as well as current economic trends, are continuously monitored. The Bank's jurisdictional and Group Credit Committees meet on a monthly basis. The Group Credit Committee is also responsible for approving the allowance for expected credit losses and other impairment charges.

A pass loan shall mean a loan that is expected to be repaid as agreed. A loan is classified as pass where the Bank is not expected to face repayment difficulties because the present and projected cash flows are sufficient to repay the debt and the repayment schedule as established by the agreement is being followed. Loans in this category are reviewed by the Bank’s management on at least an annual basis.

A special mention loan shall mean a loan under close monitoring by the Bank’s management on at least a quarterly basis. Loans in this category are currently still performing, but are potentially weak and present an undue credit risk exposure, but not to the point of justifying a classification of substandard.

A substandard loan shall mean a loan whose evident unreliability makes repayment doubtful and there is a threat of loss to the Bank unless the unreliability is averted. Loans in this category are under close monitoring by the Bank’s management on at least a quarterly basis.

A non-accrual loan shall mean either management is of the opinion full payment of principal or interest is in doubt or that the principal or interest is 90 days past due unless it is a residential mortgage loan which is well secured and collection efforts are reasonably expected to result in amounts due. Loans in this category are under close monitoring by the Bank’s management on at least a quarterly basis.


10
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

The amortized cost of loans by credit quality classification and allowance for expected credit losses by class of loans is as follows:
March 31, 2026PassSpecial
mention		SubstandardNon-accrualTotal amortized costAllowance for expected credit lossesTotal net loans
Commercial loans
Government293,745 — — — 293,745 (233)293,512 
Commercial and industrial155,078 — 652 17,121 172,851 (14,284)158,567 
Commercial overdrafts56,485 — — 380 56,865 (90)56,775 
Total commercial loans505,308 — 652 17,501 523,461 (14,607)508,854 
Commercial real estate loans
Commercial mortgage482,211 4,449 1,993 3,405 492,058 (1,027)491,031 
Construction84,250 — — — 84,250 — 84,250 
Total commercial real estate loans566,461 4,449 1,993 3,405 576,308 (1,027)575,281 
Consumer loans
Automobile financing19,346 — 2 127 19,475 (48)19,427 
Credit card95,592 — 639 — 96,231 (2,130)94,101 
Overdrafts32,306 — 33 8 32,347 (329)32,018 
Other consumer1
44,183 — 805 785 45,773 (836)44,937 
Total consumer loans191,427 — 1,479 920 193,826 (3,343)190,483 
Residential mortgage loans2,892,796 6,399 159,212 68,325 3,126,732 (7,299)3,119,433 
Total4,155,992 10,848 163,336 90,151 4,420,327 (26,276)4,394,051 
1 Other consumer loans’ amortized cost includes $6 million of cash and portfolio secured lending and $31 million of lending secured by buildings in construction or other collateral.

December 31, 2025PassSpecial
mention		SubstandardNon-accrualTotal amortized costAllowance for expected credit lossesTotal net loans
Commercial loans
Government276,815 — — — 276,815 (257)276,558 
Commercial and industrial176,753 — 667 17,130 194,550 (12,030)182,520 
Commercial overdrafts62,819 610 105 195 63,729 (70)63,659 
Total commercial loans516,387 610 772 17,325 535,094 (12,357)522,737 
Commercial real estate loans
Commercial mortgage481,978 184 2,062 3,434 487,658 (1,098)486,560 
Construction77,573 — — — 77,573 — 77,573 
Total commercial real estate loans559,551 184 2,062 3,434 565,231 (1,098)564,133 
Consumer loans
Automobile financing18,993 — 3 174 19,170 (27)19,143 
Credit card98,398 — 680 — 99,078 (2,184)96,894 
Overdrafts35,022 — 32 5 35,059 (350)34,709 
Other consumer1
40,605 — 812 829 42,246 (854)41,392 
Total consumer loans193,018 — 1,527 1,008 195,553 (3,415)192,138 
Residential mortgage loans2,916,341 3,769 122,239 69,560 3,111,909 (8,506)3,103,403 
Total4,185,297 4,563 126,600 91,327 4,407,787 (25,376)4,382,411 
1 Other consumer loans’ amortized cost includes $6 million of cash and portfolio secured lending and $27 million of lending secured by buildings in construction or other collateral.


11
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Based on the most recent analysis performed, the amortized cost of loans by year of origination and credit quality classification is as follows:

March 31, 2026PassSpecial
 mention		SubstandardNon-accrualTotal amortized cost
Loans by origination year
2026169,027 2,367 — — 171,394 
2025509,999 — 13,185 — 523,184 
2024435,758 — 22,413 125 458,296 
2023269,567 — 1,015 34 270,616 
2022701,003 782 7,675 44 709,504 
Prior1,882,522 7,699 118,376 89,560 2,098,157 
Overdrafts and credit cards188,116 — 672 388 189,176 
Total amortized cost4,155,992 10,848 163,336 90,151 4,420,327 

December 31, 2025PassSpecial
 mention		SubstandardNon-accrualTotal amortized cost
Loans by origination year
2025514,608 — — — 514,608 
2024470,244 — 247 181 470,672 
2023283,923 — 1,039 54 285,016 
2022722,368 805 6,250 25 729,448 
2021350,808 — — 257 351,065 
Prior1,643,350 3,148 118,246 90,610 1,855,354 
Overdrafts and credit cards199,996 610 818 200 201,624 
Total amortized cost4,185,297 4,563 126,600 91,327 4,407,787 

Age Analysis of Past Due Loans (Including Non-Accrual Loans)
The following tables summarize the past due status of the loans. The aging of past due amounts are determined based on the contractual delinquency status of payments under the loan and this aging may be affected by the timing of the last business day at period end. Loans less than 30 days past due are included in current loans.
March 31, 202630 - 59
days		60 - 89
days		90 days or moreTotal past
 due loans		Total
current		Total
amortized cost
Commercial loans
Government— — — — 293,745 293,745 
Commercial and industrial— — 17,121 17,121 155,730 172,851 
Commercial overdrafts— — 380 380 56,485 56,865 
Total commercial loans— — 17,501 17,501 505,960 523,461 
Commercial real estate loans
Commercial mortgage323 — 2,970 3,293 488,765 492,058 
Construction— — — — 84,250 84,250 
Total commercial real estate loans323 — 2,970 3,293 573,015 576,308 
Consumer loans
Automobile financing181 — 127 308 19,167 19,475 
Credit card655 424 476 1,555 94,676 96,231 
Overdrafts— — 41 41 32,306 32,347 
Other consumer44 16 660 720 45,053 45,773 
Total consumer loans880 440 1,304 2,624 191,202 193,826 
Residential mortgage loans30,496 3,075 146,730 180,301 2,946,431 3,126,732 
Total amortized cost31,699 3,515 168,505 203,719 4,216,608 4,420,327 
12
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

December 31, 202530 - 59
days		60 - 89
days		90 days or moreTotal past
 due loans		Total
current		Total
amortized
cost
Commercial loans
Government— — — — 276,815 276,815 
Commercial and industrial— — 17,130 17,130 177,420 194,550 
Commercial overdrafts— — 300 300 63,429 63,729 
Total commercial loans— — 17,430 17,430 517,664 535,094 
Commercial real estate loans
Commercial mortgage328 174 3,434 3,936 483,722 487,658 
Construction— — — — 77,573 77,573 
Total commercial real estate loans328 174 3,434 3,936 561,295 565,231 
Consumer loans
Automobile financing99 14 160 273 18,897 19,170 
Credit card596 515 466 1,577 97,501 99,078 
Overdrafts— — 37 37 35,022 35,059 
Other consumer270 17 675 962 41,284 42,246 
Total consumer loans965 546 1,338 2,849 192,704 195,553 
Residential mortgage loans13,863 33,158 90,727 137,748 2,974,161 3,111,909 
Total amortized cost15,156 33,878 112,929 161,963 4,245,824 4,407,787 

Changes in Allowances For Credit Losses
Allowance for expected credit losses increased during the three months ended March 31, 2026 compared to December 31, 2025 due to a legacy Bermuda commercial facility and partially offset by the release of a provision on a residential mortgage facility in the Channel Islands and UK segment. As disclosed in Note 2 of the December 31, 2025 Audited Consolidated Financial Statements, the Bank continuously collects and maintains attributes related to financial instruments within the scope of CECL, including current conditions, and reasonable and supportable assumptions about future economic conditions.

Three months ended March 31, 2026
CommercialCommercial
 real estate		ConsumerResidential
 mortgage		Total
Balance at the beginning of period12,357 1,098 3,415 8,506 25,376 
Provision increase (decrease)2,346 (71)380 (1,223)1,432 
Recoveries of previous charge-offs— — 322 42 364 
Charge-offs, by origination year
2026— — — — — 
2025— — — — — 
2024— — (52)— (52)
2023— — (17)— (17)
2022— — — — — 
Prior(83)— (3)— (86)
Overdrafts and credit cards(2)— (697)— (699)
Other(11)— (5)(26)(42)
Allowances for expected credit losses at end of period14,607 1,027 3,343 7,299 26,276 
13
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Three months ended March 31, 2025
CommercialCommercial
 real estate		ConsumerResidential
 mortgage		Total
Balance at the beginning of period
11,684 3,267 3,254 7,504 25,709 
Provision increase (decrease)774 (2,136)(59)1,017 (404)
Recoveries of previous charge-offs— — 652 41 693 
Charge-offs, by origination year
2025— — — — — 
2024— — — — — 
2023— — — (30)(30)
2022— — — — — 
2021— — — — — 
Prior(250)(34)(13)(86)(383)
Overdrafts and credit cards(7)— (376)— (383)
Other11 — 5 46 62 
Allowances for expected credit losses at end of period
12,212 1,097 3,463 8,492 25,264 

Collateral-dependent loans
Management identified that the repayment of certain commercial and consumer mortgage loans is expected to be provided substantially through the operation or the sale of the collateral pledged to the Bank ("collateral-dependent loans"). The Bank believes that for the vast majority of loans identified as collateral-dependent, the sale of the collateral will be sufficient to fully reimburse the loan's carrying amount.

Non-Performing Loans
During the three months ended March 31, 2026, no interest was recognized on non-accrual loans. No credit deteriorated loans were purchased during the period.

March 31, 2026December 31, 2025
Non-accrual loans with an allowanceNon-accrual loans without an allowancePast
 due 90 days or more and accruing		Total non-
performing
 loans		Non-accrual loans with an allowanceNon-accrual loans without an allowancePast
 due 90 days or more and accruing		Total non-
performing
 loans
Commercial loans
Commercial and industrial17,121 — — 17,121 17,130 — — 17,130 
Commercial overdrafts380 — — 380 195 — 105 300 
Total commercial loans17,501 — — 17,501 17,325 — 105 17,430 
Commercial real estate loans
Commercial mortgage1,850 1,555 — 3,405 2,891 543 — 3,434 
Total commercial real estate loans1,850 1,555 — 3,405 2,891 543 — 3,434 
Consumer loans
Automobile financing— 127 — 127 99 75 — 174 
Credit cards— — 476 476 — — 466 466 
Overdrafts8 — 33 41 5 — 32 37 
Other consumer456 329 — 785 494 335 — 829 
Total consumer loans464 456 509 1,429 598 410 498 1,506 
Residential mortgage loans47,010 21,315 84,753 153,078 49,357 20,203 27,418 96,978 
Total non-performing loans66,825 23,326 85,262 175,413 70,171 21,156 28,021 119,348 













14
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
The following table summarizes the amortized cost basis of loan modifications as at March 31, 2026 and March 31, 2025 made to borrowers experiencing financial difficulty during the three-months ended March 31, 2026 and March 31, 2025.

Amortized cost basisWeighted average financial effects
March 31, 2026Term extension and interest rate
 reduction		Payments delay in # of monthsTerm extensionInterest rate
 reduction		In % of the class of loansMonths of
 payment delay		Months of term extensionInterest rate
 reduction
Residential mortgage loans668 — 4,764 951 0.2 %0133.4 %

Amortized cost basisWeighted average financial effects
March 31, 2025Term extension and interest rate
 reduction		Payments delay in # of monthsTerm extensionInterest rate
 reduction		In % of the class of loansMonths of
 payment delay		Months of term extensionInterest rate
 reduction
Residential mortgage loans1,223 — 419 1,230 0.1 %0342.7 %
Age analysis and subsequent default of modified loans.
As at March 31, 2026 and March 31, 2025, all loans for which a concession was granted during the preceding 12 months are current, except for the following:

Residential mortgage loans:
–$0.8 million (March 31, 2025: $1.2 million) of residential mortgage loans for which a term extension and reduction in interest rate was granted are 30 to 59 days past due;
–Nil (March 31, 2025: $0.2 million) of residential mortgages loans for which a term extension was granted are 60 to 89 days past due; and
–$25.7 million (March 31, 2025: $0.2 million) of residential mortgage loans for which a term extension and reduction in interest rate was granted and are 90 days or more past due.

Note 7: Credit risk concentrations

Concentrations of credit risk in the lending and off-balance sheet credit-related arrangements portfolios arise when a number of customers are engaged in similar business activities, are in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Bank regularly monitors various segments of its credit risk portfolio to assess potential concentrations of risks and to obtain collateral when deemed necessary. In the Bank's commercial portfolio, risk concentrations are evaluated primarily by industry and by geographic region of loan origination. In the consumer portfolio, concentrations are evaluated primarily by products. Credit exposures include loans, guarantees and acceptances, letters of credit and commitments for undrawn lines of credit. Unconditionally cancellable credit cards and overdraft lines of credit are excluded from the tables below.

The following table summarizes the credit exposure of the Bank by geographic region. The exposure amounts disclosed below do not include accrued interest and are gross of allowances for credit losses and gross of collateral held.
15
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

March 31, 2026December 31, 2025
Geographic regionCash and cash equivalents, resell agreements and
 short-term
 investments		LoansOff-balance
 sheet		Total credit
 exposure		Cash and cash equivalents, resell agreements and
 short-term
 investments		LoansOff-balance
 sheet		Total credit
 exposure
Belgium4,068 — — 4,068 3,568 — — 3,568 
Bermuda45,930 1,440,555 305,559 1,792,044 41,849 1,471,971 317,243 1,831,063 
Canada1,119,314 — — 1,119,314 1,276,109 — — 1,276,109 
Cayman Islands38,315 1,052,073 218,652 1,309,040 37,633 1,029,012 198,769 1,265,414 
France115,451 — — 115,451 117,550 — — 117,550 
Germany22,129 — — 22,129 6,121 — — 6,121 
Guernsey1 533,584 111,334 644,919 1 541,110 99,753 640,864 
Ireland10,699 — — 10,699 26,027 — — 26,027 
Japan151,354 — — 151,354 102,407 — — 102,407 
Jersey— 355,496 35,580 391,076 — 306,190 65,666 371,856 
Mauritius870 — — 870 686 — — 686 
Norway10,099 — — 10,099 90,585 — — 90,585 
Singapore1,129 — — 1,129 — — — 
Switzerland9,369 — — 9,369 9,642 — — 9,642 
The Bahamas54 2,750 — 2,804 186 2,895 — 3,081 
United Kingdom1,566,683 1,035,869 130,662 2,733,214 1,357,142 1,056,609 143,314 2,557,065 
United States775,458 — — 775,458 490,782 — — 490,782 
Other1,132 — — 1,132 1,429 — — 1,429 
Total gross exposure3,872,055 4,420,327 801,787 9,094,169 3,561,717 4,407,787 824,745 8,794,249 

Note 8: Deposits

March 31, 2026December 31, 2025
Non-interest bearing demand deposits2,636,446 2,701,145 
Interest bearing demand deposits6,440,210 6,055,342 
Interest bearing term deposits
3,805,311 3,941,581 
Total deposits12,881,967 12,698,068 

March 31, 2026
As of March 31, 2026, the remaining maturities of interest-bearing term deposits in each of the 12-month periods ending March 31 were as follows:
20273,745,544 
202823,506 
202922,920 
20308,370 
20314,971 
Total term deposits3,805,311 
¹The weighted-average interest rate on interest-bearing demand deposits as at March 31, 2026 is 0.67% (December 31, 2025: 0.74%).
Uninsured term deposits totaled $3.7 billion as at March 31, 2026 (December 31, 2025: $3.9 billion)

By Type and SegmentMarch 31, 2026December 31, 2025
Payable
on demand		Payable on a
fixed date		TotalPayable
on demand		Payable on a
fixed date		Total
Bermuda3,613,028 1,001,658 4,614,686 3,529,577 951,658 4,481,235 
Cayman3,101,537 923,999 4,025,536 2,980,600 1,085,168 4,065,768 
Channel Islands and the UK2,362,091 1,879,654 4,241,745 2,246,310 1,904,755 4,151,065 
Total deposits9,076,656 3,805,311 12,881,967 8,756,487 3,941,581 12,698,068 



16
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Note 9: Employee benefit plans

The Bank maintains trusteed pension plans including non-contributory defined benefit plans and a number of defined contribution plans, and provides post-retirement medical benefits to its qualifying retirees. The defined benefit provisions under the pension plans are generally based upon years of service and average salary during the relevant years of employment. The defined benefit and post-retirement medical plans are not open to new participants and are non-contributory and the funding required is provided by the Bank, based upon the advice of independent actuaries. The defined benefit pension plans are in the Bermuda, Guernsey and UK jurisdictions, and the defined benefit post-retirement medical plan is in Bermuda. The Bank has a residual obligation on top of its defined contribution plan in Mauritius.

The Bank included an estimate of the 2026 Bank contribution and estimated benefit payments for the next ten years under the pension and post-retirement plans in its audited financial statements for the year ended December 31, 2025. During the three months ended March 31, 2026, there have been no material revisions to these estimates.
Three months ended
Line item in the consolidated statements of operationsMarch 31, 2026March 31, 2025
Defined benefit pension expense (income)
Interest cost Non-service employee benefits expense1,213 1,281 
Expected return on plan assets Non-service employee benefits expense(1,674)(1,619)
Amortization of net actuarial (gains) lossesNon-service employee benefits expense509 583 
Amortization of prior service (credit) costNon-service employee benefits expense21 20 
Total defined benefit pension expense (income)69 265 
Post-retirement medical benefit expense (income)
Service costSalaries and other employee benefits3 11 
Interest costNon-service employee benefits expense1,009 1,092 
Amortization of net actuarial (gains) lossesNon-service employee benefits expense(160)131 
Amortization of prior service (credit) costNon-service employee benefits expense131 (151)
Total post-retirement medical benefit expense (income)983 1,083 



Note 10: Credit related arrangements, repurchase agreements and commitments

Commitments
The Bank enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of the Bank's commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for expected credit losses.

The Bank has a facility with one of its custodians, whereby the Bank may offer up to $200 million of standby letters of credit to its customers on a fully secured basis. Under the standard terms of the facility, the custodian has the right to set-off against securities held of 110% of the utilized facility. At March 31, 2026, $121.3 million (December 31, 2025: $125.0 million) of standby letters of credit were issued under this facility.

Outstanding unfunded commitments to extend creditMarch 31, 2026December 31, 2025
Commitments to extend credit560,332 577,370 
Documentary and commercial letters of credit554 859 
Total unfunded commitments to extend credit560,886 578,229 
Allowance for credit losses(148)(131)

Credit-Related Arrangements
Standby letters of credit and letters of guarantee are issued at the request of a Bank customer in order to secure the customer’s payment or performance obligations to a third party. These guarantees represent an irrevocable obligation of the Bank to pay the third party beneficiary upon presentation of the guarantee and satisfaction of the documentary requirements stipulated therein, without investigation as to the validity of the beneficiary’s claim against the customer. Generally, the term of the standby letters of credit does not exceed one year, while the term of the letters of guarantee does not exceed four years. The types and amounts of collateral security held by the Bank for these standby letters of credit and letters of guarantee are generally represented by deposits with the Bank or a charge over assets held in mutual funds.

The Bank considers the fees collected in connection with the issuance of standby letters of credit and letters of guarantee to be representative of the fair value of its obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, the Bank defers fees collected in connection with the issuance of standby letters of credit and letters of guarantee. The fees are then recognized in income proportionately over the life of the credit agreements. The following table presents the outstanding financial guarantees. Collateral is shown at estimated market value less selling cost. Where the collateral is cash, it is shown gross including accrued income.

17
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

March 31, 2026December 31, 2025
Outstanding financial guaranteesGrossCollateralNetGrossCollateralNet
Standby letters of credit239,839 217,689 22,150 245,398 223,245 22,153 
Letters of guarantee1,062 1,026 36 1,118 1,081 37 
Total240,901 218,715 22,186 246,516 224,326 22,190 

Repurchase agreements
The Bank utilizes repurchase agreements and resell agreements (reverse repurchase agreements) to manage liquidity. These agreements are carried at the amounts at which the securities will be subsequently sold or repurchased. The risks of these transactions include changes in the fair value of the securities posted or received as collateral and other credit related events. The Bank manages these risks by ensuring that the collateral involved is appropriate and by monitoring the value of the securities posted or received as collateral on a daily basis.

As at March 31, 2026, the Bank had 14 open positions (December 31, 2025: 13) in resell agreements with a remaining maturity of less than 365 days involving pools of mortgages issued by US federal agencies and Non-US government debt securities. The carrying value of these resell agreements is $1.0 billion (December 31, 2025: $1.1 billion) and are included in securities purchased under agreements to resell on the consolidated balance sheets.

As at March 31, 2026, the Bank had one open position (December 31, 2025: nil) in a repurchase agreement with a remaining maturity of less than 30 days involving one non-US government debt security, with the carrying value of the repurchase agreement being $132.3 million (December 31, 2025: nil).

Legal Proceedings
There are actions and legal proceedings pending against the Bank and its subsidiaries which arose in the normal course of its business. Management, after reviewing all actions and proceedings pending against or involving the Bank and its subsidiaries, considers that the resolution of these matters would in the aggregate not be material to the consolidated financial position of the Bank.

Note 11: Leases

The Bank enters into operating lease agreements either as the lessee or the lessor, mostly for office and parking spaces as well as for small office equipment. The terms of the existing leases, including renewal options that are reasonably certain to be exercised, extend up to the year 2039. Certain lease payments will be adjusted during the related lease's term based on movements in the relevant consumer price index.

Three months ended
March 31, 2026March 31, 2025
Lease costs
Operating lease costs1,5231,841
Short-term lease costs370295
Total net lease cost1,8932,136
Operating lease income401106
Other information for the period
Right-of-use assets related to new operating lease liabilities— 766 
Operating cash flows from operating leases1,287 1,445 
Other information at end of periodMarch 31, 2026December 31, 2025
Operating leases right-of-use assets (included in other assets on the balance sheets)37,97738,079
Operating lease liabilities (included in other liabilities on the balance sheets)38,58638,725
Weighted average remaining lease term for operating leases (in years)11.4211.53
Weighted average discount rate for operating leases5.89 %5.90 %
18
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

The following table summarizes the maturity analysis of the Bank's commitments for long-term leases as at December 31, 2025:
Year ending December 31Operating Leases
20265,248
20275,408
20285,332
20294,691
20304,195
2031 & thereafter17,106
Total commitments41,980
Less: effect of discounting cash flows to their present value(3,394)
Operating lease liabilities38,586
Note 12: Segmented information

The Bank is managed by the Chairman & CEO, its Chief Operating Decision Maker ("CODM"), on a geographic basis. The Bank presents four reportable segments, three geographical and one other: Bermuda, Cayman, Channel Islands and the UK, and Other. The Other segment is composed of several non-reportable operating segments that have been aggregated in accordance with GAAP. The Bermuda, Cayman, and Channel Islands and UK segments have a managing director who reports to the Chairman & CEO. Within the Other segment, each operating segment has a managing director that reports to the Group Head of Trust or Chief Operating Officer who ultimately reports to The Chairman & CEO. The Chairman & CEO and the segment managing director have final authority over resource allocation decisions and performance assessment.

The geographic segments reflect this management structure and the manner in which financial information is currently evaluated by the Chairman & CEO in assessing operating
performance. Segment results are determined based on the Bank's management reporting system, which assigns balance sheet and statement of operations items to each of
the geographic segments. The process is designed around the Bank's organizational and management structure and, accordingly, the results derived are not necessarily
comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below.

Accounting policies of the reportable segments are the same as those described in Note 2 of the Bank's audited financial statements for the year ended December 31, 2025. Transactions between segments are accounted for on an accrual basis and are all eliminated upon consolidation. The Bank generally does not allocate assets, revenues and expenses among its business segments, with the exception of certain corporate overhead expenses and loan participation revenue and expenses. Loan participation revenue and expenses are allocated pro-rata based upon the percentage of the total loan funded by each jurisdiction participating in the loan. Other expenses are comprised of marketing, non-service employee benefits and other non-interest expenses.

The Bermuda segment provides a comprehensive range of retail, commercial and private banking services. Retail services are offered to individuals and small to medium-sized businesses through three branch locations and through internet banking, mobile banking, automated teller machines and debit cards. Retail services include deposit services,
consumer and mortgage lending, credit cards and personal insurance products. Commercial banking includes commercial lending and mortgages, cash management, payroll
services, remote banking and letters of credit. Treasury services include money market and foreign exchange activities. Bermuda’s wealth management offering consists of
Butterfield Asset Management Limited, which provides investment management, advisory and brokerage services and Butterfield Trust (Bermuda) Limited, which provides trust,
estate, company management and custody services. Bermuda is also the location of the Bank's head offices and accordingly, retains the unallocated corporate overhead
expenses.

The Cayman segment provides a comprehensive range of retail, commercial and private banking services. Retail services are offered to individuals and small to medium-sized businesses through three branch locations and through internet banking, mobile banking, ATMs and debit cards. Retail services include deposit services, consumer and
mortgage lending, credit cards and property/auto insurance. Commercial banking includes commercial lending and mortgages, cash management, payroll services, remote
banking and letters of credit. Treasury services include money market and foreign exchange activities. Cayman’s wealth management offering comprises investment
management, advisory and brokerage services and Butterfield Trust (Cayman) Limited, which provides trust, estate and company management.

The Channel Islands and the UK segment includes the jurisdictions of Guernsey and Jersey (Channel Islands), and the UK. In the Channel Islands, a broad range of services
are provided to individuals, private clients, trusts, financial institutions and funds including deposit services, mortgage lending, credit cards, private and corporate banking, treasury services, internet banking, wealth management and fiduciary services. The UK jurisdiction provides mortgage services for high-value residential properties.

The Other segment includes the jurisdictions of The Bahamas, Canada, Mauritius, Singapore and Switzerland. These operating segments individually and collectively do not
meet the quantitative threshold for segmented reporting and are therefore aggregated as non-reportable operating segments.

Total Assets by SegmentMarch 31, 2026December 31, 2025
Bermuda5,366,655 5,111,127 
Cayman 4,311,125 4,425,113 
Channel Islands and the UK4,780,581 4,599,096 
Other73,139 70,731 
Total assets before inter-segment eliminations14,531,500 14,206,067 
Less: inter-segment eliminations(106,742)(111,173)
Total14,424,758 14,094,894 




19
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Three months ended March 31, 2026BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 50,626 37,939 44,084 30 132,679 — 132,679 
Interest income - Inter-segment— 685 — — 685 (685)— 
Interest income Total50,626 38,624 44,084 30 133,364 (685)132,679 
Interest expense
Interest expense 7,864 7,375 24,156 — 39,395 — 39,395 
Interest expense - Inter-segment685 — — — 685 (685)— 
Interest expense Total8,549 7,375 24,156 — 40,080 (685)39,395 
Net interest income
Net interest income 42,762 30,564 19,928 30 93,284 — 93,284 
Net interest income - Inter-segment(685)685 — — — — — 
Net interest income Total42,077 31,249 19,928 30 93,284 — 93,284 
Non-interest income26,099 19,510 11,284 12,748 69,641 (6,997)62,644 
Allowance for credit losses(2,092)(26)670 — (1,448)— (1,448)
Net revenue before gains and losses66,084 50,733 31,882 12,778 161,477 (6,997)154,480 
Gains and losses— — 4 — 4 — 4 
Total net revenue66,084 50,733 31,886 12,778 161,481 (6,997)154,484 
Expenses
Salaries and other employee benefits18,530 6,781 12,102 7,621 45,034 — 45,034 
Technology and communications7,619 3,026 2,349 368 13,362 — 13,362 
Non-income taxes5,205 484 754 505 6,948 — 6,948 
Professional and outside services3,709 520 1,002 302 5,533 — 5,533 
Property1,684 687 1,469 666 4,506 — 4,506 
Amortization of intangible assets358 275 911 437 1,981 — 1,981 
Depreciation3,350 1,097 657 115 5,219 — 5,219 
Income tax benefit (expense) — — 1,006 346 1,352 — 1,352 
Other expenses10,807 3,749 (776)1,143 14,923 (6,997)7,926 
Expenses Total51,262 16,619 19,474 11,503 98,858 (6,997)91,861 
Net income14,822 34,114 12,412 1,275 62,623 — 62,623 














20
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Three months ended March 31, 2025BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 54,188 39,826 45,959 39 140,012 — 140,012 
Interest income - Inter-segment277 966 33 — 1,276 (1,276)— 
Interest income Total54,465 40,792 45,992 39 141,288 (1,276)140,012 
Interest expense
Interest expense 11,802 10,301 28,582 — 50,685 — 50,685 
Interest expense - Inter-segment997 — 279 — 1,276 (1,276)— 
Interest expense Total12,799 10,301 28,861 — 51,961 (1,276)50,685 
Net interest income
Net interest income 42,386 29,525 17,377 39 89,327 — 89,327 
Net interest income - Inter-segment(720)966 (246)— — — — 
Net interest income Total41,666 30,491 17,131 39 89,327 — 89,327 
Non-interest income22,960 19,605 11,030 10,841 64,436 (6,006)58,430 
Allowance for credit losses2,877 (120)(2,378)— 379 — 379 
Net revenue before gains and losses67,503 49,976 25,783 10,880 154,142 (6,006)148,136 
Gains and losses22 — 3 — 25 — 25 
Total net revenue67,525 49,976 25,786 10,880 154,167 (6,006)148,161 
Expenses
Salaries and other employee benefits19,193 7,901 11,450 6,984 45,528 — 45,528 
Technology and communications7,931 3,473 2,111 328 13,843 — 13,843 
Non-income taxes4,868 575 610 441 6,494 — 6,494 
Professional and outside services3,562 473 1,205 204 5,444 — 5,444 
Property2,345 788 1,801 620 5,554 — 5,554 
Amortization of intangible assets358 275 854 410 1,897 — 1,897 
Depreciation3,422 1,075 712 124 5,333 — 5,333 
Income tax benefit (expense) — — 930 249 1,179 — 1,179 
Other expenses10,028 3,595 677 831 15,131 (6,006)9,125 
Expenses Total51,707 18,155 20,350 10,191 100,403 (6,006)94,397 
Net income15,818 31,821 5,436 689 53,764 — 53,764 














21
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Note 13: Derivative instruments and risk management

The Bank uses derivatives for risk management purposes and to meet the needs of its customers. The Bank’s derivative contracts principally involve over-the-counter ("OTC") transactions that are negotiated privately between the Bank and the counterparty to the contract and include interest rate contracts and foreign exchange contracts.

The Bank may pursue opportunities to reduce its exposure to credit losses on derivatives by entering into International Swaps and Derivatives Associations ("ISDAs") agreements. Depending on the nature of the derivative transaction, bilateral collateral arrangements may be used, as well. When the Bank is engaged in more than one outstanding derivative transaction with the same counterparty, and also has a legally enforceable master netting agreement with that counterparty, the net marked-to-market exposure represents the netting of the positive and negative exposures with that counterparty. When there is a net negative exposure, the Bank regards its credit exposure to the counterparty as being zero. The net marked-to-market position with a particular counterparty represents a reasonable measure of credit risk when there is a legally enforceable master netting agreement between the Bank and that counterparty.

Certain of these agreements contain credit risk-related contingent features in which the counterparty has the option to accelerate cash settlement of the Bank's net derivative liabilities with the counterparty in the event the Bank's credit rating falls below specified levels or the liabilities reach certain levels.

All derivative financial instruments, whether designated as hedges or not, are recorded on the consolidated balance sheets at fair value within other assets or other liabilities. These amounts include the effect of netting. The accounting for changes in the fair value of a derivative in the consolidated statements of operations depends on whether the contract has been designated as a hedge and qualifies for hedge accounting.

Notional Amounts
The notional amounts are not recorded as assets or liabilities on the consolidated balance sheets as they represent the face amount of the contract to which a rate or price is applied to determine the amount of cash flows to be exchanged. Notional amounts represent the volume of outstanding transactions and do not represent the potential gain or loss associated with market risk or credit risk of such instruments. Credit risk is limited to the positive fair value of the derivative instrument, which is significantly less than the notional amount.

Fair Value
Derivative instruments, in the absence of any compensating up-front cash payments, generally have no market value at inception. They obtain value, positive or negative, as relevant interest rates, exchange rates, equity or commodity prices or indices change. The potential for derivatives to increase or decrease in value as a result of the foregoing factors is generally referred to as market risk. Market risk is managed within clearly defined parameters as prescribed by senior management of the Bank. The fair value is defined as the profit or loss associated with replacing the derivative contracts at prevailing market prices.

Risk Management Derivatives
The Bank enters into interest derivative contracts as part of its overall interest rate risk management strategy to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. The Bank’s goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain consolidated balance sheet assets and liabilities so that movements in interest rates do not adversely affect the net interest margin. Derivative instruments that are used as part of the Bank’s risk management strategy include interest rate swap contracts that have indices related to the pricing of specific consolidated balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable-rate interest payments between two parties, based on a common notional principal amount and maturity date. The Bank uses foreign currency derivative instruments to hedge its exposure to foreign currency risk. Certain hedging relationships are formally designated and qualify for hedge accounting as fair value or net investment hedges. Risk management derivatives comprise fair value hedges, net investment hedges and derivatives not formally designated as hedges as described below.

Fair value hedges include designated currency swaps that are used to minimize the Bank's exposure to variability in the fair value of AFS investments due to movements in foreign exchange rates. The effective portion of changes in the fair value of the hedged items attributable to foreign exchange rates is recognized in current year earnings consistent with the related change in fair value of the hedging instrument. For fair value hedges, hedging effectiveness of the hedged item and the hedging instrument are assessed and managed at inception and on an ongoing basis using a partial-term method.

Net investment hedges include designated currency swaps and qualifying non-derivative instruments and are used to minimize the Bank’s exposure to variability in the foreign
currency translation of net investments in foreign operations. The effective portion of changes in the fair value of the hedging instrument is recognized in Accumulated other comprehensive income (loss) ("AOCIL") consistent with the related translation gains and losses of the hedged net investment. For net investment hedges, all critical terms of the hedged item and the hedging instrument are matched at inception and on an ongoing basis to minimize the risk of hedge ineffectiveness.

For derivatives designated as net investment hedges, the Bank follows the method based on changes in spot exchange rates. Accordingly:
- The change in the fair value of the derivative instrument that is reported in AOCIL (i.e., the effective portion) is determined by the changes in spot exchange rates.
- The change in the fair value of the derivative instrument attributable to changes in the difference between the forward rate and spot rate are excluded from the measure
of the hedge ineffectiveness and that difference is reported directly in the consolidated statements of operations under foreign exchange revenue.
Amounts recorded in AOCIL are reclassified to earnings only upon the sale or substantial liquidation of an investment in a foreign subsidiary.

For foreign-currency-denominated financial instruments that are designated as hedges of net investments in foreign operations, the translation gain or loss that is recorded in AOCIL is based on the spot exchange rate between the reporting currency of the Bank and the functional currency of the respective subsidiary. See Note 19: Accumulated other comprehensive income (loss) for details on the amount recognized into AOCIL during the current period from translation gain or loss.

Derivatives not formally designated as hedges are entered into to manage the foreign exchange risk of the Bank's exposure. Changes in the fair value of derivative instruments not formally designated as hedges are recognized in foreign exchange revenue.

Client service derivatives
The Bank enters into foreign exchange contracts primarily to meet the foreign exchange needs of its customers. Foreign exchange contracts are agreements to exchange specific amounts of currencies at a future date at a specified rate of exchange. Changes in the fair value of client services derivative instruments are recognized in foreign exchange revenue.

The following table shows the aggregate notional amounts of derivative contracts outstanding listed by type and respective gross positive or negative fair values and classified by those used for risk management (sub-classified as hedging and those that do not qualify for hedge accounting), client services and credit derivatives. Fair value of derivatives is
22
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

recorded in the consolidated balance sheets in other assets and other liabilities. Gross positive fair values are recorded in other assets and gross negative fair values are recorded in other liabilities, subject to netting when master netting agreements are in place.
March 31, 2026Derivative instrumentNumber of contractsNotional 
amounts 		Gross
 positive
fair value		Gross
 negative
fair value		Net 
fair value 
Risk management derivatives
Net investment hedgesCurrency swaps2 57,126 481 — 481 
Fair value hedgesCurrency swaps2 125,619 — (1,266)(1,266)
Derivatives not formally designated as hedging instrumentsCurrency swaps74 1,578,252 17,444 (4,411)13,033 
Subtotal risk management derivatives1,760,997 17,925 (5,677)12,248 
Client services derivativesSpot and forward foreign exchange106 158,722 955 (728)227 
Total derivative instruments1,919,719 18,880 (6,405)12,475 
December 31, 2025Derivative instrumentNumber of contractsNotional 
amounts 		Gross
 positive
fair value		Gross
 negative
fair value		Net 
fair value 
Risk management derivatives
Net investment hedgesCurrency swaps3 124,435 — (923)(923)
Fair value hedgesCurrency swaps2 127,685 339 (157)182 
Derivatives not formally designated as hedging instrumentsCurrency swaps59 1,434,912 4,891 (8,551)(3,660)
Subtotal risk management derivatives1,687,032 5,230 (9,631)(4,401)
Client services derivativesSpot and forward foreign exchange70 189,594 984 (786)198 
Total derivative instruments1,876,626 6,214 (10,417)(4,203)
The nominal amount of derivatives designated as fair value hedging instruments equals the amortized cost of the AFS securities that are designated as being hedged for changes in foreign exchange rates.

In addition to the above, as at March 31, 2026 foreign denominated deposits of £219.7 million (December 31, 2025: £211.2 million); Nil (December 31, 2025: SGD0.1 million) and Nil (December 31, 2025: CHF0.4 million) were designated as a hedge of foreign exchange risk associated with the net investment in foreign operations.

The Bank manages derivative exposure by monitoring the credit risk associated with each counterparty using counterparty specific credit risk limits, using master netting arrangements where appropriate and obtaining collateral. The Bank elected to offset in the consolidated balance sheets certain gross derivative assets and liabilities subject to netting agreements.

The Bank also elected not to offset certain derivative assets or liabilities and all collateral received or paid that the Bank or the counterparties could legally offset in the event of default. In the tables below, these positions are deducted from the net fair value presented in the consolidated balance sheets in order to present the net exposures. The collateral values presented in the following table are limited to the related net derivative asset or liability balance and, accordingly, do not include excess collateral received or paid.
Gross fair
 value
 recognized		Less: offset
 applied
 under master
 netting
 agreements		Net fair value
presented in the
 consolidated
 balance sheets		Less: positions not offset in the consolidated balance sheets
March 31, 2026Gross fair value of derivativesCash collateral
 received / paid		Net exposures
Derivative assets
Spot and forward foreign exchange and currency swaps18,880 (5,506)13,374 — (312)13,062 
Derivative liabilities
Spot and forward foreign exchange and currency swaps6,405 (5,506)899 — (332)567 
Net positive fair value12,475 
Gross fair
 value
 recognized		Less: offset
 applied
 under master
 netting
 agreements		Net fair value
presented in the
 consolidated
 balance sheets		Less: positions not offset in the consolidated balance sheets
December 31, 2025Gross fair value of derivativesCash collateral
 received / paid		Net exposures
Derivative assets
Spot and forward foreign exchange and currency swaps6,214 (5,150)1,064 — (326)738 
Derivative liabilities
Spot and forward foreign exchange and currency swaps10,417 (5,150)5,267 — (3,356)1,911 
Net negative fair value(4,203)
23
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

The following tables show the location and amount of gains (losses) recorded in either the consolidated statements of operations or consolidated statements of comprehensive income on derivative instruments outstanding.
Three months ended
Derivative instrumentConsolidated statements of operations line itemMarch 31, 2026March 31, 2025
Spot and forward foreign exchangeForeign exchange revenue30 1 
Currency swaps, not designated as hedgeForeign exchange revenue16,694 (33,559)
Currency swaps - fair value hedgesForeign exchange revenue(1,449)6,703 
Total net gains (losses) recognized in net income15,275 (26,855)
Three months ended
Derivative instrumentConsolidated statements of comprehensive income line itemMarch 31, 2026March 31, 2025
Currency swaps - net investment hedgeUnrealized net gains (losses) on translation of net investment in foreign operations1,403 (233)
Total net gains (losses) recognized in comprehensive income1,403 (233)

Note 14: Fair value measurements

The following table presents the financial assets and liabilities that are measured at fair value on a recurring basis. Management classifies these items based on the type of inputs used in their respective fair value determination as described in Note 2 of the Bank's audited financial statements for the year ended December 31, 2025.

Management reviews the price of each security monthly, comparing market values to expectations and to the prior month’s price. Management's expectations are based upon knowledge of prevailing market conditions and developments relating to specific issuers and/or asset classes held in the investment portfolio. Where there are unusual or significant price movements, or where a certain asset class has performed out-of-line with expectations, the matter is reviewed by management.

Financial instruments in Level 1 include US Government Treasury notes.

Financial instruments in Level 2 include government debt securities, mortgage-backed securities, other asset-backed securities, forward foreign exchange contracts and securities sold under agreements to repurchase.

There were no Level 3 investments as at March 31, 2026 and December 31, 2025.

There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the three months ended March 31, 2026 and the year ended December 31, 2025.

March 31, 2026December 31, 2025
Fair valueTotal carrying
amount /
fair value		Fair valueTotal carrying
amount /
fair value
Level 1Level 2Level 1Level 2
Items that are recognized at fair value on a recurring basis:
Available-for-sale investments
US government and federal agencies1,356,964 1,366,493 2,723,457 1,342,083 1,340,388 2,682,471 
Residential mortgage-backed securities— 13,188 13,188 — 13,782 13,782 
Total available-for-sale1,356,964 1,379,681 2,736,645 1,342,083 1,354,170 2,696,253 
Other assets - Derivatives— 13,374 13,374 — 1,064 1,064 
Financial liabilities
Other liabilities - Derivatives— 899 899 — 5,267 5,267 
24
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Items Other Than Those Recognized at Fair Value on a Recurring Basis:
March 31, 2026December 31, 2025
LevelCarrying
amount		Fair
 value		Appreciation /
(depreciation)		Carrying
amount		Fair
 value		Appreciation /
(depreciation)
Financial assets
Cash and cash equivalentsLevel 11,941,888 1,941,888 — 1,708,936 1,708,936 — 
Securities purchased under agreements to resellLevel 21,017,737 1,017,737 — 1,096,238 1,096,238 — 
Short-term investmentsLevel 1912,430 912,430 — 756,543 756,543 — 
Investments held-to-maturityLevel 22,939,086 2,506,590 (432,496)2,992,052 2,566,470 (425,582)
Loans, net of allowance for credit lossesLevel 24,394,051 4,377,456 (16,595)4,382,411 4,367,439 (14,972)
Financial liabilities
Term depositsLevel 23,805,311 3,808,393 (3,082)3,941,581 3,944,728 (3,147)
Securities sold under agreements to repurchaseLevel 2132,300 132,300 — — — — 

Note 15: Long-term debt             

On June 11, 2020, the Bank issued US $100 million of Subordinated Lower Tier II capital notes. The notes were issued at par and due on June 15, 2030. The issuance was by way of a registered offering with US institutional investors. The notes were listed on the BSX in the specialist debt securities category. The proceeds of the issue were used, among others, to repay the entire amount of the US $45 million outstanding subordinated notes Series 2005-B which matured on July 2, 2020. The notes issued paid a fixed coupon of 5.25% until June 15, 2025 when they became redeemable in whole at the option of the Bank. The notes were priced at a spread of 4.43% over the 10-year US Treasury yield. The Bank incurred $2.3 million of costs directly related to the issuance of these capital notes which were capitalized directly against the carrying value of these notes on the balance sheet and amortized over the life of the notes. These notes were redeemed at face value in June 2025 at which time, unamortized issuance costs were fully recognized in the Consolidated Statements of Operations as part of the expense.

No interest was capitalized during the three months ended March 31, 2026, and the year ended December 31, 2025.

Note 16: Earnings per share

Earnings per share have been calculated using the weighted average number of common shares outstanding during the period after deduction of the shares held as treasury stock. The dilutive effect of share-based compensation plans was calculated using the treasury stock method, whereby the proceeds received from the exercise of share-based awards are assumed to be used to repurchase outstanding shares, using the average market price of the Bank’s shares for the period. Numbers of shares are expressed in thousands.

During the three months ended March 31, 2026, the average number of outstanding awards of unvested common shares was 1.7 million (March 31, 2025: 1.8 million). Only awards for which the sum of 1) the expense that will be recognized in the future (i.e., the unrecognized expense) and 2) its exercise price, if any, was lower than the average market price of the Bank‘s common shares were considered dilutive and, therefore, included in the computation of diluted earnings per share.

An award's unrecognized expense is also considered to be the proceeds the employees would need to pay to purchase accelerated vesting of the awards. For the purposes of calculating dilution, such proceeds are assumed to be used by the Bank to buy back common shares at the average market price. The weighted-average number of outstanding awards, net of the assumed weighted-average number of common shares bought back, is included in the number of diluted participating shares.
Three months ended
March 31, 2026March 31, 2025
Net income62,623 53,764 
Basic Earnings Per Share
Weighted average number of common shares issued39,782 43,170 
Weighted average number of common shares held as treasury stock— (619)
Weighted average number of common shares (in thousands)39,782 42,551 
Basic Earnings Per Share1.57 1.26 
Diluted Earnings Per Share
Weighted average number of common shares39,782 42,551 
Net dilution impact related to awards of unvested common shares1,099 1,041 
Weighted average number of diluted common shares (in thousands)40,881 43,592 
Diluted Earnings Per Share1.53 1.23 





25
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Note 17: Share-based payments

The common shares transferred to employees under all share-based payments are either taken from the Bank's common treasury shares or from newly issued shares. All share-based payments are settled by the ultimate parent company which, pursuant to Bermuda law, is not taxed on income. There are no income tax benefits in relation to the issue of such shares as a form of compensation.

In May 2020, the Board of Directors approved the 2020 Omnibus Plan (the "2020 Plan"). Under the 2020 Plan, 3.0 million shares are initially available for grant to employees in the form of stock options or unvested share awards. In February 2025, the Board of Directors approved the Amended and Restated 2020 Omnibus Share Incentive Plan with 5.0 million additional shares available for grant to employees in the form of stock options or unvested share awards. Both types of awards are detailed below.

Stock Option Awards
Under the 2020 Plan, options can be awarded to Bank employees and executive management, based on predetermined vesting conditions that entitle the holder to purchase one common share at a subscription price no less than the price of the most recently traded common share when granted and have a maximum term of 10 years.

There were no stock options outstanding as at March 31, 2026 and December 31, 2025.

Unvested Share Awards
Recipients of unvested share awards are entitled to the related common shares at no cost, at the time the award vests. Recipients of unvested shares may be entitled to receive additional unvested shares having a value equal to the cash dividends that would have been paid had the unvested shares been issued and vested. Such additional unvested shares granted as dividend equivalents are subject to the same vesting schedule and conditions as the underlying unvested shares.

Unvested shares subject only to the time vesting condition generally vest upon retirement, death, disability or upon termination, by the Bank, of the holder’s employment unless if in connection with the holder’s misconduct. Unvested shares subject to both time vesting and performance vesting conditions remain outstanding and unvested upon retirement and will vest only if the performance conditions are met. Unvested shares can also vest in limited circumstances and if specifically approved by the Board, as stipulated in the holder’s employment contract. In all other circumstances, unvested shares are generally forfeited when employment ends.

The grant date weighted average fair value (which equals the actual trading price prevailing on grant date) of unvested share awards granted in the three months ended March 31, 2026 was $52.54 per share (December 31, 2025: $37.50 per share). The Bank expects to settle these awards by issuing new shares.

Employee Deferred Incentive Program
Under the Bank’s EDIP, shares are awarded to Bank employees and executive management based on the time vesting condition, which states that the shares will vest equally over a three-year period from the effective grant date.

Employee Long-Term Incentive Share Program
Under the Bank’s ELTIP, performance shares as well as time-vesting shares were awarded to employees and executive management. The performance shares will generally vest upon the achievement of certain performance targets in the three-year period from the effective grant date. The time-vesting shares will generally vest over the three-year period from the effective grant date.

Employee Share Purchase Plan
The Bank's ESPP was approved in July 2021 and registered in November 2021. The first offering period started in May 2022. Under the Bank's ESPP, eligible employees may elect to contribute up to 15% of their regular compensation toward the purchase of the Bank's shares at a 10% discount from market price on the closing date of each offering period. The ESPP specifies two consecutive six month offering periods per year. In the case of termination of employment or voluntary partial or full withdrawal from the plan, the related current offering period ESPP contributions are refunded to the employee and thus cannot be used to purchase shares under the ESPP. During the three months ended March 31, 2026, nil shares (December 31, 2025: 13,022 shares) were issued under the ESPP.

Changes in Outstanding ELTIP and EDIP awards (in thousands of shares transferable upon vesting)
Three months ended
March 31, 2026March 31, 2025
EDIPELTIPEDIPELTIP
Outstanding at beginning of period500 1,236 628 1,151 
Granted434 221 117 319 
Vested (fair value in 2026: $26.2 million, 2025: $15.3 million )
(119)(376)(112)(268)
Outstanding at end of period815 1,081 633 1,202 

Share-based Compensation Cost Recognized in the Financial Statements
Three months ended
March 31, 2026March 31, 2025
EDIP and ELTIP5,458 5,488 
Share-based Compensation Cost Recognized in Net Income5,458 5,488 
Deduct: Fair value of awards withheld for employees' payroll tax purposes(303)(147)
Share-based Compensation Cost Recognized in Additional Paid-in Capital5,155 5,341 

26
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Unrecognized Share-based Compensation Cost
March 31, 2026December 31, 2025
Unrecognized costWeighted average years over which it is expected to be recognizedUnrecognized costWeighted average years over which it is expected to be recognized
EDIP27,454 4.956,573 1.52
ELTIP
Time vesting shares— 0.008 0.12
Performance vesting shares22,868 2.1215,053 1.65
Total unrecognized expense50,322 21,634 

Note 18: Share repurchase programs

From time to time, the Bank may seek to repurchase and retire equity securities of the Bank, through cash purchase, privately negotiated transactions, or otherwise. Such transactions, if any, depend on prevailing market conditions, liquidity and capital requirements, contractual restrictions, and other factors.

Common Share Repurchase Program

On December 9, 2024, the Board approved a new common share repurchase program, authorizing the purchase of up to 2.7 million common shares through to December 31,
2025.

On July 28, 2025, the Board approved a new common share repurchase program, authorizing the purchase of up to 1.5  million common shares through to December 31, 2025.

On December 8, 2025, the Board approved a new common share repurchase program, authorizing the purchase of up to 3.0  million common shares through to December 31, 2026.

The table below presents information about common stock repurchases:
Three months ended
Common share repurchasesMarch 31, 2026
March 31, 2025
Acquired number of shares (to the nearest 1)827,327 1,094,727 
Average cost per common share51.29 37.78 
Total cost (in US dollars)42,433,574 41,357,779 

Note 19: Accumulated other comprehensive income (loss)
Unrealized net gains (losses)
 on translation of
 net investment in
 foreign
 operations		Unrealized net
 gains (losses)
 on HTM
 investments		Unrealized net
 gains (losses)
 on AFS
 investments		Employee benefit plans adjustments
Three months ended March 31, 2026PensionPost-retirement
 healthcare		Subtotal -
 employee
benefits plans		Total AOCIL
Balance at beginning of period(19,772)(66,024)(88,287)(47,117)17,045 (30,072)(204,155)
Other comprehensive income (loss), net of taxes(3,216)1,805 (10,375)685 (29)656 (11,130)
Balance at end of period(22,988)(64,219)(98,662)(46,432)17,016 (29,416)(215,285)
Unrealized net gains (losses)
 on translation of
 net investment in
 foreign
 operations		Unrealized net
 gains (losses)
 on HTM
 investments		Unrealized net
 gains (losses)
 on AFS
 investments		Employee benefit plans adjustments
Three months ended March 31, 2025PensionPost- retirement
 healthcare		Subtotal -
 employee
benefits plans		Total AOCIL
Balance at beginning of period(26,191)(73,919)(162,275)(49,282)16,252 (33,030)(295,415)
Other comprehensive income (loss), net of taxes3,931 1,777 31,911 381 (20)361 37,980 
Balance at end of period(22,260)(72,142)(130,364)(48,901)16,232 (32,669)(257,435)
27
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Net Change of AOCIL ComponentsThree months ended
 Line item in the consolidated
statements of operations, if any		March 31, 2026March 31, 2025
Net unrealized gains (losses) on translation of net investment in foreign operations adjustments
Foreign currency translation adjustmentsN/A(9,761)15,095 
Gains (losses) on net investment hedgeN/A6,545 (11,164)
Net change(3,216)3,931 
Held-to-maturity investment adjustments
Amortization of net gains (losses) to net incomeInterest income on investments1,805 1,777 
Net change1,805 1,777 
Available-for-sale investment adjustments
Gross unrealized gains (losses)N/A(10,741)32,849 
Foreign currency translation adjustments of related balancesN/A366 (938)
Net change(10,375)31,911 
Employee benefit plans adjustments
Defined benefit pension plan
Amortization of net actuarial (gains) lossesNon-service employee benefits expense509 583 
Amortization of prior service (credit) costNon-service employee benefits expense21 — 
Change in deferred taxesN/A— 20 
Foreign currency translation adjustments of related balancesN/A155 (222)
Net change685 381 
Post-retirement healthcare plan
Amortization of net actuarial (gains) lossesNon-service employee benefits expense(160)131 
Amortization of prior service (credit) costNon-service employee benefits expense131 (151)
Net change(29)(20)
Other comprehensive income (loss), net of taxes(11,130)37,980 

Note 20: Capital structure

Authorized Capital
The par value of each issued common share and each authorized but unissued common share is BM$0.01 and the authorized share capital of the Bank comprises 2,000,000,000 common shares of par value BM$0.01 each, 6,000,000,000 non‑voting ordinary shares of par value BM$0.01 each, 110,200,001 preference shares of par value US$0.01 each and 50,000,000 preference shares of par value £0.01 each.

Dividends Declared
During the three months ended March 31, 2026, the Bank declared and paid cash dividends of $0.50 (March 31, 2025: $0.44) for each common share as of the related record dates.

The Bank is required to comply with Section 54 of the Companies Act 1981 issued by the Government of Bermuda (the “Companies Act”) each time a dividend is declared or paid by the Bank and also obtain a letter of no objection from the BMA pursuant to the Banks and Deposit Companies Act 1999 for any dividends declared. The Bank has complied with Section 54 and has obtained the BMA's letter of no objection for all dividends declared during the periods presented.

Regulatory Capital
Effective January 1, 2025, the Bank adopted the Basel Committee on Banking Supervision's revised standardized approach for credit risk framework as required by the BMA.

The Bank’s regulatory capital is determined in accordance with current Basel guidelines as issued by the BMA. The Bank is fully compliant with all regulatory capital requirements to which it is subject, and it maintains capital ratios in excess of regulatory minimums as at March 31, 2026 and December 31, 2025. The following table sets forth the Bank's capital adequacy in accordance with the relevant Basel framework:

28
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

March 31, 2026December 31, 2025
ActualRegulatory minimumActualRegulatory minimum
Capital
CET 1 capital1,109,498 N/A1,102,302 N/A
Tier 1 capital1,109,498 N/A1,102,302 N/A
Tier 2 capital5,809 N/A6,189 N/A
Total capital1,115,306 N/A1,108,492 N/A
Risk Weighted Assets4,139,354 N/A3,991,389 N/A
Leverage Ratio Exposure Measure14,859,286 N/A14,520,704 N/A
Capital Ratios (%)
CET 1 capital26.8 %10.0 %27.6 %10.0 %
Tier 1 capital26.8 %11.5 %27.6 %11.5 %
Total capital26.9 %13.5 %27.8 %13.5 %
Leverage ratio7.5 %5.0 %7.6 %5.0 %

Note 21: Business combinations

Rawlinson & Hunter Guernsey Limited Acquisition
On February 19, 2026, the Bank announced that it has entered into an agreement to acquire all the outstanding shares of Rawlinson & Hunter Limited (“R&H”), the independently owned Guernsey member firm of the Rawlinson & Hunter International Network. The acquisition will further expand the Bank’s Channel Islands presence and strengthen its trust and fiduciary offering with the addition of approximately $9.0 billion of Assets Under Administration.

The transaction closed on April 15, 2026, and management is in the process of allocating the purchase price to the various assets acquired and liabilities assumed (including intangible assets and goodwill which are expected to receive the major part of the allocated purchase price).

Note 22: Related party transactions

Financing Transactions
Certain directors and executives of the Bank, companies in which they are principal owners and/or members of the board, and trusts in which they are involved, have deposits with the Bank, have loans and/or are guarantors for loans with the Bank. Loans to directors were made in the ordinary course of business at normal credit terms, including interest rate and collateral requirements. Loans to executives may be eligible for preferential rates. All of these loans were considered performing loans as at March 31, 2026 and December 31, 2025. Loan balances with directors and executives of the Bank, companies in which they are principal owners and/or members of the board, and trusts in which they are involved were as follows:

Balance at December 31, 202419,637 
Net loans issued (repaid) during the year(256)
Effect of changes in the composition of related parties(15,163)
Balance at December 31, 20254,218 
Net loans issued (repaid) during period(124)
Balance at March 31, 2026
4,094 

Consolidated balance sheetsMarch 31, 2026December 31, 2025
Deposits74,031 92,182 
Three months ended
Consolidated statements of operations
March 31, 2026March 31, 2025
Interest and fees on loans41 308 
Total non-interest expense86 24 
Other non-interest income75 92 








29
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Certain affiliates of the Bank have loans and deposits with the Bank which were made and are maintained in the ordinary course of business on normal commercial terms. Balances with these parties were as follows:

Consolidated balance sheetsMarch 31, 2026December 31, 2025
Loans8,582 8,884 
Deposits300 545 
Accrued interest and other liabilities226 175 

Three months ended
Consolidated statements of operations
March 31, 2026March 31, 2025
Interest and fees on loans168 179 
Total non-interest expense482 211 
Other non-interest income 64 63 

Investments
As at March 31, 2026, several Butterfield mutual funds which are managed by a wholly owned subsidiary of the Bank, had loan balances and deposit balances held with the Bank. The Bank also earned asset management revenue and custody and other administration services revenue from funds managed by a wholly-owned subsidiary of the Bank and from directors and executives, companies in which they are principal owners and/or members of the board and trusts in which they are involved, as well as other income from other related parties.

Consolidated balance sheetsMarch 31, 2026December 31, 2025
Loans1,999 — 
Deposits16,171 9,365 
Accrued interest and other assets450 461 
Three months ended
Consolidated statements of operations
March 31, 2026March 31, 2025
Asset management3,389 2,736 
Custody and other administration services410 351 
Other non-interest income167 — 
Interest and fees on loans444 — 

Note 23: Subsequent events

On April 28, 2026, the Board of Directors declared an interim dividend of $0.50 per common share to be paid on May 27, 2026 to shareholders of record on May 13, 2026.

30
First Quarter 2026 The Bank of N.T. Butterfield & Son Limited Earnings Presentation April 29, 2026

 

2 Forward-Looking Statements Forward-Looking Statements: Certain of the statements made in this presentation are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, our intention to, identify and enter into acquisitions or other strategic transactions and the timing and anticipated benefits thereof (including with respect to the acquisition of R&H Guernsey), and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. These risks and uncertainties may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including Butterfield’s ability to realize the anticipated benefits of the acquisition of R&H Guernsey in the expected time-frames or at all; Butterfield’s ability to successfully integrate R&H Guernsey’s operations into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the risk that revenues following the acquisition of R&H Guernsey may be lower than expected; the risk that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the acquisition; risks associated with the disruption of management’s attention from ongoing business operations due to the acquisition; and the outcome of any legal proceedings that may be instituted against Butterfield or R&H Guernsey. Other factors that may impact Butterfield’s future results, performance or achievements include worldwide economic conditions (including economic growth and general business conditions) and fluctuations of interest rates, inflation, a decline in Bermuda’s sovereign credit rating, any sudden liquidity crisis, the successful entry into, completion and integration of acquisitions or the realization of the anticipated benefits of such acquisitions, success in business retention (including the retention of relationships associated with our acquisition of R&H Guernsey), potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements. All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. About Non-GAAP Financial Measures: This presentation contains non-GAAP financial measures including “core” net income and other financial measures presented on a “core” basis. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. Reconciliations of these non-GAAP measures to corresponding GAAP financial measures are provided in the Appendix of this presentation. Presentation of Financial Information: Certain monetary amounts, percentages and other figures included in this presentation have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.

 

3 Agenda and Overview Ten International Locations Butterfield Overview Michael Collins Chairman and Chief Executive Officer Michael Schrum President and Group Chief Financial Officer Jody Feldman Managing Director, Bermuda • Leading Bank in Attractive Markets • Strong Capital Generation and Return • Resilient, Capital Efficient, Diversified Fee Revenue Model • Efficient, Conservative Balance Sheet • Experienced Leadership Team • Overview • First Quarter 2026 Financials • Q&A Presenters Agenda • Leading market positions in Bermuda & Cayman • Expanding retail offerings in The Channel Islands • Well-secured lending in all markets • Award winning banking and wealth management offerings Sustainability Awards

 

4 Financials

 

5 First Quarter 2026 Highlights Net Income (In US$ millions) Return on Equity (In US$ millions) vs. Q4 2025 vs. Q1 2025 Q1 2026 $ % $ % Net Interest Income $ 93.3 $ 0.7 $ 4.0 Non-Interest Income 62.6 (3.6) 4.2 Provision for Credit Losses (1.4) (1.6) (1.8) Non-Interest Expenses* (91.9) 3.4 2.5 Net Income $ 62.6 $ (1.2) (1.8) % $ 8.9 16.5 % Non-Core Items** 0.6 0.5 (2.4) Core Net Income** $ 63.2 $ (0.6) (1.0) % $ 6.5 11.4 % • Net income of $62.6 million, or $1.53 per share • Core net income** of $63.2 million, or $1.55 per share • Return on average common equity of 22.1%; core return on average tangible common equity** of 24.1% • Net Interest Margin of 2.75%, cost of deposits of 1.24% • Quarterly cash dividend of $0.50 per common share • Repurchases of 0.8 million shares at a total cost of $42.4 million • Closed previously announced acquisition of Rawlinson & Hunter Guernsey on April 15, 2026 * Includes income taxes ** See the Appendix for a reconciliation of non-GAAP measures $53.8 $53.3 $61.1 $63.8 $62.6 $56.7 $53.7 $63.3 $63.8 $63.2 Net income Core Net Income** Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 20.9% 20.3% 22.5% 22.7% 22.1% 24.2% 22.3% 25.5% 24.6% 24.1% Return on Equity Core Return on Average Tangible Common Equity** Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

 

6 Net Interest Income before Provision for Credit Losses -Trend (In US$ millions) $89.3 $92.6 $93.3 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net Interest Margin & Yields Income Statement Net Interest Income • Net interest income (“NII”) and net interest margin (“NIM”) are higher compared to the prior quarter due to: ◦ lower cost of deposits as central banks have reduced market interest rates; ◦ increased investment yields with assets deployed into higher yielding available-for-sale investment securities; and ◦ partially offset by lower loan and treasury yields following the aforementioned rate cuts, coupled with lower day count in the first quarter of 2026 • Average investment volumes continue to increase as assets were deployed into higher yielding available-for-sale investment securities • Average loan volumes were relatively flat compared to the prior quarter (In US$ millions) Q1 2026 vs. Q4 2025 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $ 3,646.1 3.35 % $ 57.4 (0.09) % Investments 5,714.1 2.78 % 28.0 0.06 % Loans (net) 4,399.8 5.84 % 3.5 (0.17) % Interest Earning Assets 13,760.0 3.91 % 88.9 (0.06) % Interest Bearing Liabilities 10,150.5 (1.57) % 24.3 0.16 % Net Interest Margin 2.75 % 0.06 %

 

7 Non-Interest Income Trend (In US$ millions)(In US$ millions) Q1 2026 vs. Q4 2025 Asset management $ 10.4 $ — Banking 16.3 (3.5) Foreign exchange revenue 14.6 0.9 Trust 16.7 (0.9) Custody and other 3.7 (0.3) Other 1.0 0.2 Total Non-Interest Income $ 62.6 $ (3.6) $58.4 $66.3 $62.6 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 • Total non-interest income decreased by $3.6 million versus the prior quarter, primarily due to: ◦ lower banking fees due to prior period seasonality; ◦ a decrease in trust revenue driven by reduced time-based and special fees, and ◦ partially offset by higher foreign exchange revenue driven by volume • The fee income ratio was 40.6% in the first quarter of 2026 which compares favorably to historical peer* averages Income Statement Non-Interest Income * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks.

 

8 Core Non-Interest Expense* Trend (In US$ millions) Core Non-Interest Expenses* vs. Q4 2025 (In US$ millions) Q1 2026 $ % Salaries & Benefits** $ 46.1 $ (0.6) (1.3) % Technology & Comm. 15.4 (1.2) (7.4) % Professional & O/S Services 5.0 (1.4) (21.9) % Property 7.7 (0.8) (9.0) % Indirect Taxes 6.9 1.5 27.9 % Marketing 1.8 (0.2) (9.9) % Intangible Amortization 2.0 (0.2) (8.2) % Other 5.1 (0.3) (5.4) % Total Core Non-Interest Expenses* $ 89.9 $ (3.1) (3.4) % Non-Core Expenses* 0.6 0.5 >100% Non-Interest Expenses $ 90.5 $ (2.6) (2.8) % $90.3 $93.1 $89.9 59.8% 57.2% 56.4% Core Efficiency Ratio* Core Non-Interest Expenses* Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 • Core non-interest expenses* decreased compared to the prior quarter with the following underlying movements: ◦ lower professional and outside services fees for project work; ◦ lower technology and communications expenses; and ◦ partially offset by an increase in payroll taxes related to the annual vesting of share-based compensation • Core efficiency ratio* of 56.4% decreased compared to the prior quarter and was favorable to the Bank’s through-cycle core efficiency ratio target of 60% * See the Appendix for a reconciliation of non-GAAP measures ** Includes Non-Service Employee Benefits Expense Income Statement Non-Interest Expenses

 

9 Balance Sheet Total Assets (In US$ billions) • Period end deposit balances increased to $12.9 billion from $12.7 billion at the prior year end • Average deposit balances remained flat at $12.8 billion in Q1 2026 compared to the prior year end • Butterfield’s balance sheet remained low in risk density (risk weighted assets/total assets) at 28.7% vs Q4 2025 (In US$ millions) Q1 2026 Q4 2025 % Cash and cash equivalents $ 1,942 $ 1,709 14 % Reverse Repos & S/T Investments 1,930 1,853 4 % Investments 5,676 5,688 — % Loans (net) 4,394 4,382 — % Other Assets 483 462 5 % Total Assets $ 14,425 $ 14,095 2 % Int. Bearing Deposits $ 10,246 $ 9,997 3 % Non-Int. Bearing Deposits 2,636 2,701 (2) % Other Liabilities 407 255 60 % Shareholders’ Equity 1,136 1,142 (1) % Total Liab. & Equity $ 14,425 $ 14,095 2 % $14.0 $14.1 $14.4 $5.4 $5.7 $5.7 $4.5 $4.4 $4.4 Total assets Investments Loans Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $12.6 $12.7 $12.9 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Total Deposits (In US$ billions)

 

10 Asset Quality Non-Accrual Loans (In US$ millions) $103.8 $91.3 $90.2 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Res Mtg 70.7% Consumer 4.4% Comm’l R/E 13.0% Other Comm’l 5.2% Government 6.6% Loan Distribution 0.00% 0.00% 0.00% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 0.00% 0.05% 0.10% 0.15% 0.20% Net Charge-Off Ratio $4.4 billion $5.7 billion Investment Portfolio Rating Distribution • 71% of the total loan portfolio consists of full-recourse residential mortgages of which 79% have loans-to-values below 70% • Non-accrual loans were relatively flat for the quarter at 2.0% • Allowance for credit losses at $26.3 million represented an ACL/Total loans ratio of 0.6%, consistent with the prior quarter • The net charge-off ratio remained at a negligible level as a % of total gross loans AAA 0.2% AA 99.8%

 

11 Interest Rate Sensitivity Interest Rate SensitivityAverage Balance - Balance Sheet Average Balances (US$Mil) Weighted Average Life Q1 2026 vs. Q4 2025 Duration vs. Q4 2025 Cash & Reverse Repos & S/T Invest. $ 3,646.1 $ 57.4 0.2 0.1 N/A AFS 2,742.0 84.9 2.9 — 3.4 HTM** 2,972.1 (56.9) 7.0 — 8.0 Total $ 9,360.2 $ 85.4 (5.2)% 4.0% 8.0% (2.1)% 1.8% 3.4% NTB US Peer Median * -100bps +100bps +200bps • Total investment portfolio duration decreased to 4.8 years in line with the fixed portfolio maturing down, partially offset by forward rates rising • Interest rate sensitivity has increased against the prior quarter, driven by changes in asset composition with an increase in short duration assets • Net unrealized losses on AFS securities increased to $99.7 million as at March 31, 2026, compared with net unrealized losses of $89.4 million as at the end of the fourth quarter of 2025 • Based on implied forward rates, the AFS OCI is expected to further improve by 20% in the next 12 months and 47% in the next 24 months * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q4 2025 comparative data is used as Q1 2026 peer information was not widely available at time of publication. ** The HTM portfolio is comprised of securities with negative convexity which typically exhibit lower prepayment speeds when assuming higher future rates.

 

12 Capital Requirements and Dividend Return Leverage Capital • Regulatory capital levels remain conservatively above minimum requirements • Quarterly dividend rate of $0.50 per common share • TCE/TA ratio*** of 7.3%, conservatively above the targeted range of 6.0% to 6.5% • Tangible book value per share*** increased by 0.6% compared to the prior quarter at $26.56 Regulatory Capital - Total Capital Ratio 26.9% 13.5% 15.5% Butterfield Current BMA Minimum US Peer Median** *** See the Appendix for a reconciliation of non-GAAP measures 8.5% 12.8% 7.3% 12.3% 1.2% 0.5% TCE/TA TCE/TA Ex Cash Butterfield - Current US Peer Median** $86.2 $79.9 $77.7 $20.0 $88.6 $155.3 $146.7 $42.4 Combined Payout Ratio Share Repurchases Cash Dividend 2023 2024 2025 Q1 2026 Combined Payout Ratio * * 2026 is based on year to date cash dividends, share repurchases and net income ** Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q4 2025 comparative data is used as Q1 2026 peer information was not widely available at time of publication. 78% 109% 97% 100%

 

13 Appendix

 

14 Group (US$ Billions) Bermuda (US$ Billions) Deposit Composition by Segment Cayman (US$ Billions) Channel Islands (US$ Billions) 20% 21% 21% 49% 48% 50% 31% 31% 30% $12.6 $12.7 $12.9 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 35% 35% 33% 45% 44% 45% 20% 21% 22% $4.5 $4.5 $4.6 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 25% 27% 27% 47% 46% 50% 28% 27% 23% $3.9 $4.1 $4.0 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 1% 1% 1% 54% 53% 55% 45% 46% 44% $4.2 $4.2 $4.2 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

 

15 Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billions) Loans Loan Portfolio Composition by Originating Segment (US$ Billions) Fixed vs. Floating Rate Loans (US$ Billions) 29% 27% 26% 23% 19% 20% 49% 54% 54% $3.6 $3.1 $3.1 Bermuda Cayman UK and Channel Islands Total Residential Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 37% 33% 32% 24% 24% 24% 39% 43% 44% $5.1 $4.4 $4.4 Bermuda Cayman UK and Channel Islands Total Loans Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 43% 45% 44% 57% 55% 56% $5.1 $4.4 $4.4 Fixed Floating Total Loans Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 24% 18% 16% 9% 6% 5% 21% 25% 27% 46% 51% 52% $1.4 $1.1 $1.1 Commercial and Industrial Commercial Overdrafts Government Commercial Real Estate Total Commercial Loans Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

 

16 Balance Sheet Movements Deposit Composition by Currency (US$ billions)Deposit Movements (US$ millions) $+180 Change vs Q4 2025 Loan Movements (US$ millions) Loan Composition by Currency (US$ billions) +240 -60 $+10 Change vs Q4 2025 Volume FX Translation 71% 71% 72% 21% 23% 22% 8% 6% 6% $12.6 $12.7 $12.9 USD / USD Pegged GBP Other Total deposits Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 59% 58% 57% 40% 42% 43% 1% —% —% $4.5 $4.4 $4.4 USD / USD Pegged GBP Other Total loans Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 +40 -30

 

17 Loan-to-Deposit Ratio Balance Sheet Asset Mix Liquidity: Cash & Cash Equivalents** to Total Assets 36% 36% 35% 35% 34% 71% 71% 70% 70% NTB US Peer Median* Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 26% 26% 25% 25% 27% 5% 5% 5% 6% NTB US Peer Median* Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 • Butterfield takes a conservative approach to managing the liquidity and funding risk profile of its balance sheet. This involves the retention of a significant liquidity holding of cash or cash equivalent balances, comprised of interbank deposits and short-dated sovereign Canadian, UK and US Treasury Bills, as well as maintaining significant liquidity facilities with correspondent banks • Butterfield also maintains capital, liquidity and funding buffers conservatively in excess of regulatory requirements * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q1 2026 peer information was not widely available at time of publication and therefore not included. ** Includes securities purchased under agreements to resell and short-term investments.

 

18 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Assets Cash and cash equivalents $ 1,942 $ 1,709 $ 1,501 $ 1,450 $ 2,097 $ 1,998 $ 2,067 $ 2,390 $ 1,746 Reverse Repos & S/T Investments 1,930 1,853 1,987 2,247 1,498 1,785 1,750 1,289 1,480 Investments 5,676 5,688 5,675 5,458 5,448 5,513 5,468 5,168 5,168 Loans, Net 4,394 4,382 4,468 4,578 4,518 4,474 4,648 4,585 4,644 Other Assets 483 462 456 453 458 462 441 506 490 Total Assets $ 14,425 $ 14,095 $ 14,086 $ 14,185 $ 14,020 $ 14,231 $ 14,373 $ 13,939 $ 13,528 Liabilities and Equity Total Deposits $ 12,882 $ 12,698 $ 12,721 $ 12,838 $ 12,608 $ 12,746 $ 12,738 $ 12,548 $ 12,131 Long-Term Debt — — — — 99 99 99 99 99 Other Liabilities 407 255 259 278 256 366 472 293 304 Total Liabilities $ 13,289 $ 12,953 $ 12,980 $ 13,116 $ 12,962 $ 13,211 $ 13,309 $ 12,940 $ 12,533 Common Equity $ 1,136 $ 1,142 $ 1,106 $ 1,069 $ 1,058 $ 1,021 $ 1,064 $ 999 $ 995 Total Equity $ 1,136 $ 1,142 $ 1,106 $ 1,069 $ 1,058 $ 1,021 $ 1,064 $ 999 $ 995 Total Liabilities and Equity $ 14,425 $ 14,095 $ 14,086 $ 14,185 $ 14,020 $ 14,231 $ 14,373 $ 13,939 $ 13,528 Key Metrics CET 1 Ratio 26.8 % 27.6 % 26.9 % 26.0 % 25.2 % 23.5 % 22.1 % 22.5 % 22.6 % Total Tier 1 Capital Ratio 26.8 % 27.6 % 26.9 % 26.0 % 25.2 % 23.5 % 22.1 % 22.5 % 22.6 % Total Capital Ratio 26.9 % 27.8 % 27.0 % 26.2 % 27.7 % 25.8 % 24.3 % 24.8 % 24.9 % Leverage ratio 7.5 % 7.6 % 7.5 % 7.3 % 7.4 % 7.3 % 7.1 % 7.3 % 7.5 % Risk-Weighted Assets (in $ millions) 4,139 3,991 4,014 4,063 4,207 4,539 4,776 4,668 4,648 Risk-Weighted Assets / total assets 28.7 % 28.3 % 28.5 % 28.6 % 30.0 % 31.9 % 33.2 % 33.5 % 34.4 % Tangible common equity ratio 7.3 % 7.5 % 7.3 % 6.9 % 6.9 % 6.6 % 6.8 % 6.5 % 6.7 % Book value per common share (in $) 28.68 28.58 27.25 26.01 25.07 23.78 24.09 22.12 21.53 Tangible book value per share (in $) 26.56 26.41 25.06 23.77 22.94 21.70 21.90 20.03 19.45 Non-accrual loans/gross loans 2.0 % 2.1 % 2.0 % 2.0 % 2.3 % 1.7 % 1.9 % 1.5 % 1.3 % Non-performing assets/total assets 1.2 % 0.8 % 1.0 % 0.8 % 1.1 % 1.1 % 1.5 % 1.1 % 1.2 % Allowance for credit losses/total loans 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.5 % 0.5 % Balance Sheet Trends * Effective January 1, 2025, the Bank has adopted the BCBS's revised standardized approach for credit risk framework as required by the BMA. Comparatives were prepared under the prior credit risk framework.

 

19 (in millions of US Dollars, unless otherwise indicated) Q1 2026 Q4 2025 Q1 2025 Assets Average balance ($) Interest ($) Average rate (%) Average balance ($) Interest ($) Average rate (%) Average balance ($) Interest ($) Average rate (%) Cash and cash equivalents, reverse repurchase agreements and short-term investments $ 3,646.1 $ 30.1 3.35 % $ 3,588.7 $ 31.1 3.44 % $ 3,519.3 $ 34.5 3.98 % Investment in securities 5,714.1 39.2 2.78 % 5,686.1 39.0 2.72 % 5,462.6 36.1 2.68 % AFS 2,742.0 22.3 3.31 % 2,657.1 21.9 3.27 % 2,247.5 17.8 3.21 % HTM 2,972.1 16.8 2.30 % 3,029.0 17.1 2.24 % 3,215.1 18.3 2.31 % Loans 4,399.8 63.4 5.84 % 4,396.3 66.6 6.01 % 4,455.3 69.4 6.32 % Commercial 1,171.2 16.6 5.75 % 1,188.6 18.3 6.11 % 1,320.3 20.6 6.32 % Consumer 3,228.6 46.8 5.88 % 3,207.7 48.3 5.98 % 3,135.0 48.8 6.32 % Total interest earning assets 13,760.0 132.7 3.91 % 13,671.1 136.8 3.97 % 13,437.3 140.0 4.23 % Other assets 455.9 444.9 430.7 Total assets $ 14,215.8 $ 14,116.0 $ 13,868.0 Liabilities Deposits - interest bearing $ 10,143.9 $ (39.3) (1.57) % $ 10,125.1 $ (44.1) (1.73) % $ 9,853.4 $ (49.1) (2.02) % Securities sold under agreement to repurchase 6.6 (0.1) (3.99) % 1.2 — (4.53) % 16.3 (0.2) (4.42) % Long-term debt — — — % — — — % 98.7 (1.4) (5.63) % Interest bearing liabilities 10,150.5 (39.4) (1.57) % 10,126.3 (44.2) (1.73) % 9,968.5 (50.7) (2.06) % Non-interest bearing customer deposits 2,684.5 2,645.9 2,622.4 Other liabilities 249.5 238.2 263.6 Total liabilities $ 13,084.5 $ 13,010.3 $ 12,854.4 Shareholders’ equity 1,131.4 1,105.6 1,013.5 Total liabilities and shareholders’ equity $ 14,215.8 $ 14,116.0 $ 13,868.0 Non-interest bearing funds net of non- interest earning assets (free balance) $ 3,609.5 $ 3,544.8 $ 3,468.8 Net interest margin $ 93.3 2.75 % $ 92.6 2.69 % $ 89.3 2.70 % Average Balance Sheet Trends

 

20 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Income $ 93.3 $ 92.6 $ 92.7 $ 89.4 $ 89.3 $ 88.6 $ 88.1 $ 87.4 $ 87.1 Non-Interest Income 62.6 66.3 61.2 57.0 58.4 63.2 56.0 55.6 55.1 Prov. for Credit (Losses) Recovery (1.4) 0.2 (0.6) (0.2) 0.4 (0.3) (1.3) (0.5) 0.4 Non-Interest Expenses* 91.9 95.3 92.2 93.0 94.4 92.2 90.0 92.1 89.4 Other Gains (Losses) — — (0.1) 0.1 — 0.1 (0.1) 0.1 0.2 Net Income $ 62.6 $ 63.8 $ 61.1 $ 53.3 $ 53.8 $ 59.6 $ 52.7 $ 50.6 $ 53.4 Non-Core Items** $ 0.6 $ — $ 2.2 $ 0.4 $ 2.9 $ — $ 0.1 $ 0.8 $ 1.6 Core Net Income** $ 63.2 $ 63.8 $ 63.3 $ 53.7 $ 56.7 $ 59.6 $ 52.8 $ 51.4 $ 55.0 Key Metrics Loan Yield 5.84 % 6.01 % 6.24 % 6.31 % 6.32 % 6.43 % 6.64 % 6.65 % 6.58 % Securities Yield 2.78 2.72 2.67 2.67 2.68 2.51 2.39 2.30 2.23 Cost of Deposits 1.24 1.37 1.47 1.56 1.60 1.73 1.91 1.89 1.78 Net Interest Margin 2.75 2.69 2.73 2.64 2.70 2.61 2.61 2.64 2.68 Core Efficiency Ratio** 56.4 57.2 56.2 61.1 59.8 58.2 60.2 61.8 59.8 Core ROATCE** 24.1 24.6 25.5 22.3 24.2 25.2 22.5 23.3 24.5 Fee Income Ratio 40.6 41.7 39.9 39.0 39.4 41.7 39.2 39.0 38.6 Fully Diluted Share Count (in millions of common shares) 40.9 41.4 41.9 42.7 43.6 44.6 45.6 46.3 47.2 * Includes income taxes ** See the reconciliation of non-GAAP measures on pages 23-24 Income Statement Trends

 

21 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Non-Interest Income Asset Management $ 10.4 $ 10.4 $ 9.9 $ 9.4 $ 9.5 $ 9.1 $ 9.5 $ 8.9 $ 8.8 Banking 16.3 19.7 17.8 14.7 15.1 21.2 14.4 13.8 14.3 FX Revenue 14.6 13.7 13.2 12.0 13.7 13.2 12.2 12.6 13.2 Trust 16.7 17.6 16.2 16.4 15.6 15.1 15.8 15.4 15.0 Custody & Other Admin. 3.7 4.0 3.1 3.2 3.5 3.6 3.5 3.4 3.3 Other 1.0 0.8 0.8 1.4 1.0 0.9 0.7 1.6 0.4 Total Non-Interest Income $ 62.6 $ 66.3 $ 61.2 $ 57.0 $ 58.4 $ 63.2 $ 56.0 $ 55.6 $ 55.1 Non-Interest Expense Salaries & Benefits* $ 46.1 $ 46.7 $ 47.9 $ 46.7 $ 46.9 $ 44.7 $ 44.7 $ 44.8 $ 43.8 Technology & Comm. 15.4 16.7 16.0 16.3 16.0 16.6 16.5 16.9 16.1 Professional & O/S Services 5.5 6.4 5.0 5.2 5.4 5.7 4.8 6.7 5.5 Property 7.7 8.4 8.2 8.8 8.7 8.6 8.6 8.2 8.7 Indirect Taxes 6.9 5.4 5.5 5.8 6.5 5.3 5.5 5.6 6.3 Marketing 1.8 1.9 1.4 1.7 1.8 2.4 1.3 1.6 1.3 Intangible Amortization 2.0 2.2 2.0 2.0 1.9 2.2 1.9 1.9 1.9 Other 5.1 5.4 4.8 5.3 6.0 5.2 5.6 5.5 4.9 Total Non-Interest Expense $ 90.5 $ 93.1 $ 90.8 $ 91.8 $ 93.2 $ 90.6 $ 88.8 $ 91.1 $ 88.5 Income Taxes 1.4 2.2 1.4 1.2 1.2 1.5 1.2 0.9 0.9 Total Expense incld. Taxes $ 91.9 $ 95.3 $ 92.2 $ 93.0 $ 94.4 $ 92.2 $ 90.0 $ 92.1 $ 89.4 *Includes non-service employee benefits Non-Interest Income & Expense Trends

 

22 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Salaries & Benefits* $ 46.1 $ 46.7 $ 45.8 $ 46.4 $ 44.1 $ 44.7 $ 44.7 $ 44.7 $ 42.5 Technology & Comm. 15.4 16.7 16.0 16.3 16.0 16.6 16.5 16.9 16.1 Professional & O/S Services 5.0 6.4 4.9 5.1 5.4 5.7 4.7 6.1 5.2 Property 7.7 8.4 8.2 8.8 8.7 8.6 8.6 8.2 8.7 Indirect Taxes 6.9 5.4 5.4 5.8 6.3 5.3 5.5 5.5 6.3 Marketing 1.8 1.9 1.4 1.7 1.8 2.4 1.3 1.6 1.3 Intangible Amortization 2.0 2.2 2.0 2.0 1.9 2.2 1.9 1.9 1.9 Other 5.1 5.4 4.8 5.3 6.0 5.2 5.6 5.5 4.9 Total Core Non-Interest Expense** $ 89.9 $ 93.1 $ 88.5 $ 91.4 $ 90.3 $ 90.6 $ 88.6 $ 90.3 $ 86.9 Income Taxes 1.4 2.2 1.4 1.2 1.2 1.5 1.2 0.9 0.9 Total Core Expense incld. Taxes** $ 91.3 $ 95.3 $ 89.9 $ 92.6 $ 91.5 $ 92.1 $ 89.8 $ 91.2 $ 87.8 * Includes non-service employee benefits ** See the reconciliation of non-GAAP measures on pages 23-24 Core Non-Interest Expense** Trends

 

23 (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q1 Q4 Q3 Q2 Q1 Net income A $ 62.6 $ 63.8 $ 61.1 $ 53.3 $ 53.8 Non-core (gains), losses and expenses Non-core expenses Early retirement program, voluntary separation, redundancies and other non-core compensation costs — — 2.2 0.4 2.9 Business acquisition costs 0.6 — — — — Total non-core expenses C $ 0.6 $ — $ 2.2 $ 0.4 $ 2.9 Total non-core (gains), losses and expenses D=B+C 0.6 — 2.2 0.4 2.9 Core net income to common shareholders E=A+D $ 63.2 $ 63.8 $ 63.3 $ 53.7 $ 56.7 Average shareholders' equity 1,148.0 1,117.3 1,076.2 1,055.0 1,041.3 Average common equity F 1,148.0 1,117.3 1,076.2 1,055.0 1,041.3 Less: average goodwill and intangible assets (86.0) (87.2) (90.0) (91.2) (89.2) Average tangible common equity G 1,062.0 1,030.1 986.2 963.8 952.1 Return on equity A/F 22.1 % 22.7 % 22.5 % 20.3 % 20.9 % Core return on average tangible common equity E/G 24.1 % 24.6 % 25.5 % 22.3 % 24.2 % Core earnings per common share fully diluted Adjusted weighted average number of diluted common shares (in thousands) H 40.9 41.4 41.9 42.7 43.6 Earnings per common share fully diluted A/H 1.53 1.54 1.46 1.25 1.23 Non-core items per share D/H 0.02 — 0.05 0.01 0.07 Core earnings per common share fully diluted E/H 1.55 1.54 1.51 1.26 1.30 Core return on average tangible assets Total average assets I $ 14,272.0 $ 14,173.2 $ 14,016.6 $ 14,111.5 $ 13,993.7 Less: average goodwill and intangible assets (86.0) (87.2) (90.0) (91.2) (89.2) Average tangible assets J $ 14,186.1 $ 14,085.9 $ 13,926.6 $ 14,020.3 $ 13,904.5 Return on average assets A/I 1.8 % 1.8 % 1.7 % 1.5 % 1.6 % Core return on average tangible assets E/J 1.8 % 1.8 % 1.8 % 1.5 % 1.7 % Non-GAAP Reconciliation

 

24 (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q1 Q4 Q3 Q2 Q1 Tangible equity to tangible assets Shareholders' equity K $ 1,136.1 $ 1,141.9 $ 1,106.0 $ 1,069.1 $ 1,057.8 Less: goodwill and intangible assets (83.9) (86.8) (88.8) (92.2) (89.7) Tangible common equity L 1,052.2 1,055.1 1,017.1 977.0 968.1 Total assets M 14,424.8 14,094.9 14,086.4 14,185.0 14,019.8 Less: goodwill and intangible assets (83.9) (86.8) (88.8) (92.2) (89.7) Tangible assets N $ 14,340.8 $ 14,008.1 $ 13,997.5 $ 14,092.8 $ 13,930.1 Tangible common equity to tangible assets L/N 7.3 % 7.5 % 7.3 % 6.9 % 6.9 % Tangible book value per share Basic participating shares outstanding (in millions) O 39.6 39.9 40.6 41.1 42.2 Tangible book value per common share L/O 26.56 26.41 25.06 23.77 22.94 Efficiency ratio Non-interest expenses $ 90.5 $ 93.1 $ 90.8 $ 91.8 $ 93.2 Less: Amortization of intangibles (2.0) (2.2) (2.0) (2.0) (1.9) Non-interest expenses before amortization of intangibles P 88.5 90.9 88.8 89.8 91.3 Non-interest income 62.6 66.3 61.2 57.0 58.4 Net interest income before provision for credit losses 93.3 92.6 92.7 89.4 89.3 Net revenue before provision for credit losses and other gains/losses Q $ 155.9 $ 158.9 $ 153.9 $ 146.4 $ 147.8 Efficiency ratio P/Q 56.8 % 57.2 % 57.7 % 61.3 % 61.8 % Core efficiency ratio Non-interest expenses $ 90.5 $ 93.1 $ 90.8 $ 91.8 $ 93.2 Less: non-core expenses (C) (0.6) — (2.2) (0.4) (2.9) Less: amortization of intangibles (2.0) (2.2) (2.0) (2.0) (1.9) Core non-interest expenses before amortization of intangibles R 88.0 90.9 86.6 89.4 88.4 Net revenue before provision for credit losses and other gains/losses Q 155.9 158.9 153.9 146.4 147.8 Core efficiency ratio R/Q 56.4 % 57.2 % 56.2 % 61.1 % 59.8 % Non-GAAP Reconciliation (continued)

 

25 Our peer group includes the following banks, noted by their ticker symbols: Peer Group • First Hawaiian, Inc. (FHB) • Bank of Hawaii Corporation (BOH) • East West Bancorp, Inc. (EWBC) • Cullen/Frost Bankers, Inc. (CFR) • Associated Banc-Corp (ASB) • Wintrust Financial Corporation (WTFC) • Commerce Bancshares, Inc. (CBSH) • Trustmark Corporation (TRMK) • International Bancshares Corporation (IBOC) • Community Financial System, Inc. (CBU) • First Financial Bankshares, Inc. (FFIN) • Westamerica Bancorporation (WABC) • UMB Financial Corporation (UMBF)

 

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