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Butterfield (NYSE: NTB) Q2 2026 earnings and CIBC Caribbean expansion

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

Rhea-AI Filing Summary

The Bank of N.T. Butterfield & Son Limited reported second quarter 2026 net income of $46.9 million, or $1.16 per diluted share, down from $62.6 million in the prior quarter. Core net income, which excludes non-core items such as acquisition costs, was $63.9 million, or $1.58 per diluted share, slightly above $63.2 million in the first quarter and $53.7 million a year earlier. Reported return on average common equity was 16.6%, while core return on average tangible common equity was 25.0%.

Net interest income rose to $95.6 million from $93.3 million, with a net interest margin of 2.74%. Non-interest income increased to $63.4 million, helped by higher trust revenue from the completed acquisition of R&H Guernsey. Non-interest expenses climbed to $109.8 million, driven by $16.9 million of non-core, deal-related costs primarily tied to the pending acquisition of CIBC Caribbean and integration of R&H Guernsey; core non-interest expenses were $90.5 million.

Total assets were $14.3 billion and deposits $12.9 billion at June 30, 2026. The total regulatory capital ratio was a high 27.5%, and tangible book value per share was $26.19, modestly lower due to new goodwill and intangibles. Butterfield declared a quarterly dividend of $0.50 per share and repurchased 0.3 million shares for $16.1 million before pausing buybacks after signing the agreement to acquire CIBC Caribbean, a transaction management expects will roughly double the bank’s size, subject to approvals.

Positive

  • Pending CIBC Caribbean acquisition is described as a compelling deal expected to roughly double Butterfield’s size and broaden its Caribbean and international footprint, adding scale and new growth opportunities, subject to regulatory and other approvals.

Negative

  • None.

Filing Explained

At June 30, 2026, 39,326,687 shares remained outstanding after retirement; potential share issuance for the CIBC deal remains forward-looking.

This July 27 Form 6-K, which furnishes a foreign private issuer’s interim material information, reports Butterfield’s unaudited results for the quarter ended June 30, 2026.

For existing common holders, the quarter’s completed repurchase was followed by retirement of 289,304 shares, leaving 39,326,687 issued and outstanding shares at quarter-end rather than creating a new issuance.

The credit disclosures add a material balance-sheet development: total non-performing loans were $144,406 thousand at June 30, 2026, versus $119,348 thousand at December 31, 2025, while the allowance for credit losses was $27,787 thousand versus $25,376 thousand.

The securities notes also report gross unrealized losses of $110,256 thousand on available-for-sale securities and $437,570 thousand on held-to-maturity securities at June 30, 2026, compared with $101,904 thousand and $426,439 thousand, respectively, at year-end.

The proposed CIBC Caribbean acquisition remains tied to a first-half 2027 expected closing: initial regulatory filings have been completed, but possible Butterfield ordinary-share issuance is described in forward-looking transaction disclosures rather than as a completed issuance.

Net income $46.9 million For the quarter ended June 30, 2026
Core net income $63.9 million Excludes non-core items in Q2 2026
Diluted EPS $1.16 Earnings per diluted common share in Q2 2026
Net interest income $95.6 million Q2 2026 net interest income before credit loss provision
Net interest margin 2.74 % Q2 2026 net interest margin
Non-interest expenses $109.8 million Total non-interest expenses in Q2 2026, including non-core costs
Total assets $14,346.5 million Total assets at June 30, 2026
Total capital ratio 27.5 % Regulatory total capital ratio at June 30, 2026
core net income financial
"Core net income1 for the second quarter of 2026 was $63.9 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 second quarter of 2026 was 2.74%"
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.
tangible book value per share financial
"Tangible book value per share1 at the end of the second quarter of 2026 was $26.19"
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 June 30, 2026, the Bank had gross non-accrual loans of $96.0 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.
available-for-sale financial
"Available-for-sale investments are carried at fair value"
A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.
Current Expected Credit Loss financial
"zero credit loss assumption under the Current Expected Credit Loss ("CECL") model"
An accounting approach that requires lenders and companies to estimate and record the credit losses they expect on loans and receivables now, using current conditions and reasonable forecasts rather than waiting for a default to occur. It matters to investors because it changes reported reserves and profits up front and gives an earlier, more forward-looking signal of credit quality—like packing an umbrella today because the forecast predicts rain, which affects a company’s cushion against bad loans.

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

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FAQ

How did The Bank of N.T. Butterfield & Son (NTB) perform in Q2 2026?
Butterfield reported Q2 2026 net income of $46.9 million, or $1.16 diluted EPS. Core net income was $63.9 million, or $1.58 per diluted share, slightly above the prior quarter and up from $53.7 million a year earlier.

Why is Butterfield’s (NTB) Q2 2026 core net income higher than reported net income?
Core net income of $63.9 million excludes $16.9 million of non-core, deal-related expenses. These costs mainly relate to the pending acquisition of CIBC Caribbean and integration of R&H Guernsey, which reduced reported net income to $46.9 million.

What are the key margin and revenue metrics for NTB in Q2 2026?
Net interest income was $95.6 million with a 2.74% net interest margin. Non-interest income reached $63.4 million, supported by higher trust revenue from the R&H Guernsey acquisition, bringing total net revenue to $158.3 million for the quarter.

What capital and balance sheet strength does Butterfield (NTB) report for June 30, 2026?
At June 30, 2026, Butterfield had $14.3 billion in total assets and $12.9 billion in deposits. The total capital ratio was 27.5% and the common equity tier 1 ratio 27.4%, significantly above regulatory minimums, with tangible book value per share of $26.19.

What shareholder returns did Butterfield (NTB) provide in Q2 2026?
Butterfield declared a $0.50 per share quarterly cash dividend payable August 26, 2026, to shareholders of record on August 12, 2026. The bank also repurchased 0.3 million shares for $16.1 million before pausing buybacks after announcing the CIBC Caribbean deal.

What is the status and expected impact of NTB’s acquisition of CIBC Caribbean?
Butterfield has signed an agreement to acquire CIBC Caribbean and completed initial regulatory filings. Management states the deal is a compelling opportunity they expect will roughly double the bank’s size, strengthening its position across Caribbean and international financial centers.


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 July, 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 June 30, 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:  July 27, 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 - Second quarter 2026 results
99.2
Financial Statements - Second quarter 2026 results
99.3
Earnings call presentation - Second quarter 2026 results
3




newsheaderworkivaa02.jpg

Butterfield Reports Second Quarter 2026 Results
Second quarter 2026 highlights:
•Net income of $46.9 million, or $1.16 per share
•Core net income1 of $63.9 million, or $1.58 per share
•Return on average common equity of 16.6% and core return on average tangible common equity1 of 25.0%
•Net interest margin of 2.74%, cost of deposits of 1.25%
•Quarterly cash dividend of $0.50 per share for the quarter ended June 30, 2026
•Repurchases of 0.3 million shares at a total cost of $16.1 million
•Closed acquisition of R&H Guernsey with integration activities underway
•Entered into an agreement to acquire CIBC Caribbean with expected close in the first half of 2027

Hamilton, Bermuda - July 27, 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 June 30, 2026.
Net income for the second quarter of 2026 was $46.9 million, or $1.16 per diluted common share, compared to net income of $62.6 million, or $1.53 per diluted common share, for the previous quarter and $53.3 million, or $1.25 per diluted common share, for the second quarter of 2025. Core net income1 for the second quarter of 2026 was $63.9 million, or $1.58 per diluted common share, compared to $63.2 million, or $1.55 per diluted common share, for the previous quarter and $53.7 million, or $1.26 per diluted common share, for the second quarter of 2025.
The return on average common equity for the second quarter of 2026 was 16.6% compared to 22.1% for the previous quarter and 20.3% for the second quarter of 2025. The core return on average tangible common equity1 for the second quarter of 2026 was 25.0%, compared to 24.1% for the previous quarter and 22.3% for the second quarter of 2025. The efficiency ratio for the second quarter of 2026 was 67.6%, compared to 56.8% for the previous quarter and 61.3% for the second quarter of 2025. The core efficiency ratio1 for the second quarter of 2026 was 57.0% compared with 56.4% in the previous quarter and 61.1% for the second quarter of 2025.
Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, “Our second quarter results reflect the continued strength of our core banking franchise. Core net income improved from the first quarter, supported by higher net interest income and the initial contribution of trust fees from our acquisition of Rawlinson & Hunter Guernsey. The net interest margin remained stable, while deposit costs were well managed despite the competitive operating environment.
"During the quarter, we announced the acquisition of CIBC Caribbean, a compelling opportunity that we expect will double our size and strengthen Butterfield's position as a leading independent financial services provider across the Caribbean and international financial centers. We have already completed our initial regulatory filings across the relevant jurisdictions and continue to expect closing to occur in the first half of 2027, adding scale and new growth opportunities for Butterfield. We look forward to serving our new island communities with the same commitment we


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



have brought to clients across Bermuda, Cayman, Guernsey, and Jersey, building on a heritage that began with our founding in Bermuda in 1858.

"I am pleased with the strong underlying core performance of our business. We remain focused on serving our clients, maintaining our disciplined approach to risk management and capital allocation, and executing on the opportunities before us. The combination of resilient core earnings, a strong balance sheet, and the addition of the R&H Guernsey business positions us well to create long-term value for our shareholders.”

The reported net income for the second quarter of 2026 included $16.9 million of non-core, deal-related expenses, primarily associated with the acquisition of CIBC Caribbean and, to a lesser extent, integration-related costs for the R&H Guernsey business. Core net income¹ was up in the second quarter of 2026 compared to the prior quarter due to higher net interest income (“NII”), new trust income from R&H Guernsey and other gains from the sale of collateral, partially offset by higher core non-interest expenses.
NII for the second quarter of 2026 was $95.6 million, an increase compared to $93.3 million in the previous quarter and $6.2 million higher than $89.4 million in the second quarter of 2025. NII increased during the second quarter of 2026 compared to the prior quarter due to higher day count and growth in interest-earning asset volumes, partially offset by higher deposit costs associated with increased funding volumes. NII was higher during the second quarter of 2026 compared to the second quarter of 2025 due to lower cost of deposits following a 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, partially offset by lower loan and treasury yields.
Net interest margin (“NIM”) for the second quarter of 2026 was 2.74%, a decrease of 1 basis point from the previous quarter and compared favorably to 2.64% in the second quarter of 2025. NIM in the second quarter of 2026 remained relatively stable compared with the prior quarter. NIM in the second quarter of 2026 increased compared to the second quarter of 2025 due to 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 second quarter of 2026 was $63.4 million, an increase of $0.7 million from $62.6 million in the previous quarter and $6.3 million higher than the $57.0 million in the second quarter of 2025. The increase in the second quarter of 2026 compared to the prior quarter resulted from new trust revenue from the R&H Guernsey acquisition, partially offset by lower foreign exchange revenue due to decreased volume and lower banking fees. Non-interest income in the second quarter of 2026 was higher than the second quarter of 2025 due to higher trust revenue from the new R&H Guernsey business, higher foreign exchange revenue due to increased volume, higher banking fees due to credit card volume and timing of the incentive program, higher asset management fees from increased valuations and higher custody fees from additional business.
Non-interest expenses were $109.8 million in the second quarter of 2026, compared to $90.5 million in the previous quarter and $91.8 million in the second quarter of 2025, primarily attributable to acquisition-related, non-core expenses associated with CIBC Caribbean and R&H Guernsey. Core non-interest expenses1 of $92.9 million in the second quarter of 2026 were higher compared to the $89.9 million incurred in the previous quarter and the $91.4 million in the second quarter of 2025. Excluding the additional expenses associated with the R&H Guernsey business, core non-interest expenses1 in the second quarter of 2026 increased compared with the prior quarter, primarily driven by higher salaries and benefits, as well as technology and communications costs. Relative to the second quarter of 2025, core non-interest expenses1, excluding the incremental costs of the R&H Guernsey business, were lower, mainly reflecting reduced property-related expenses. Approximately $1.9 million of the quarter-over-quarter increase in core expenses during the quarter was attributable to the integration of the R&H Guernsey business.
Period end deposit balances were higher at $12.9 billion compared to December 31, 2025. Average deposits were $13.1 billion in the quarter ended June 30, 2026, an increase from the prior quarter.
Tangible book value per share1 at the end of the second quarter of 2026 was $26.19 per share, slightly lower than $26.56 per share at the end of the prior quarter. The tangible book value per share1 decreased this quarter due to the recognition of goodwill and intangibles associated with the R&H Guernsey business.
The Board declared a quarterly cash dividend of $0.50 per common share to be paid on August 26, 2026 to shareholders of record on August 12, 2026. During the second quarter of 2026, Butterfield repurchased 0.3 million common shares under the Bank's existing share repurchase program. The program was paused following the May 28, 2026 announcement of Butterfield's agreement to buy CIBC Caribbean from CIBC.
2

The current total regulatory capital ratio as at June 30, 2026 was 27.5%, compared to 27.8% as at December 31, 2025. Both of these ratios remain conservatively above the minimum regulatory requirements applicable to the Bank.

ANALYSIS AND DISCUSSION OF SECOND QUARTER RESULTS
Income statementThree months ended (Unaudited)
(in $ millions)June 30, 2026March 31, 2026June 30, 2025
Non-interest income63.4 62.6 57.0 
Net interest income before provision for credit losses95.6 93.3 89.4 
Total net revenue before provision for credit losses and other gains (losses)159.0 155.9 146.4 
Provision for credit (losses) recoveries(1.6)(1.4)(0.2)
Total other gains (losses)1.0 — 0.1 
Total net revenue158.3 154.5 146.3 
Non-interest expenses(109.8)(90.5)(91.8)
Total net income before taxes48.5 64.0 54.5 
Income tax benefit (expense)(1.6)(1.4)(1.2)
Net income46.9 62.6 53.3 
Net earnings per share
Basic
1.19 1.57 1.28 
Diluted
1.16 1.53 1.25 
Per diluted share impact of other non-core items 1
0.42 0.02 0.01 
Core earnings per share on a fully diluted basis 1
1.58 1.55 1.26 
Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares)
40,447 40,881 42,653 
Key financial ratios
Return on common equity16.6 %22.1 %20.3 %
Core return on average tangible common equity 1
25.0 %24.1 %22.3 %
Return on average assets
1.3 %1.8 %1.5 %
Net interest margin2.74 %2.75 %2.64 %
Core efficiency ratio 1
57.0 %56.4 %61.1 %
(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)June 30, 2026December 31, 2025
Cash and cash equivalents1,441 1,709 
Securities purchased under agreements to resell1,427 1,096 
Short-term investments864 757 
Investments in securities5,666 5,688 
Loans, net of allowance for credit losses4,403 4,382 
Premises, equipment and computer software, net161 159 
Goodwill and intangibles, net119 87 
Accrued interest and other assets266 217 
Total assets14,346 14,095 
Total deposits12,911 12,698 
Accrued interest and other liabilities287 255 
Total liabilities13,198 12,953 
Common shareholders’ equity1,149 1,142 
Total shareholders' equity1,149 1,142 
Total liabilities and shareholders' equity14,346 14,095 
Key Balance Sheet Ratios:June 30, 2026December 31, 2025
Common equity tier 1 capital ratio 27.4 %27.6 %
Tier 1 capital ratio 27.4 %27.6 %
Total capital ratio 27.5 %27.8 %
Leverage ratio
7.4 %7.6 %
Risk-Weighted Assets (in $ millions)3,9963,991
Risk-Weighted Assets / total assets27.9 %28.3 %
Tangible common equity ratio1
7.2 %7.5 %
Book value per common share (in $)29.2128.58
Tangible book value per share (in $)26.1926.41
Non-accrual loans/gross loans2.2 %2.1 %
Non-performing assets/total assets1.0 %0.8 %
Allowance for credit losses/total loans0.6 %0.6 %
(1)See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.

QUARTER ENDED JUNE 30, 2026 COMPARED WITH THE QUARTER ENDED MARCH 31, 2026

Net Income
Net income for the quarter ended June 30, 2026 was $46.9 million, down from $62.6 million in the prior quarter.
The change in net income during the quarter ended June 30, 2026 compared to the previous quarter is attributable to the following:
•$2.3 million increase in net interest income driven by a higher day count and growth in interest-earning asset volumes, partially offset by higher deposit costs associated with increased funding volumes;
•$1.0 million increase in total gains (losses) due to the sale of collateral securing a loan that was carried at a nil value upon acquisition;
•$0.7 million increase in non-interest income driven by (i) $2.5 million increase in trust revenue attributable to the recent R&H Guernsey acquisition; partially offset by (ii) $1.3 million decrease in foreign exchange fees driven by lower transaction volumes; and (iii) $0.4 million decrease in banking fees; and
•$19.3 million increase in non-interest expenses mainly due to (i) $16.9 million of business acquisition-related costs; (ii) $2.2 million increase in salaries and benefits driven by headcount growth associated with the R&H Guernsey acquisition and prior quarter adjustments to performance-based incentive accruals; (iii) $0.8 million increase in technology and communication costs; partially offset by (iv) $1.5 million decrease in payroll taxes related to the annual vesting of share compensation recorded in the prior quarter.




4


Non-Core Items1
Non-core items resulted in expenses, net of gains, of $16.9 million for the second 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 JUNE 30, 2026 COMPARED WITH DECEMBER 31, 2025
Total Assets
Total assets of the Bank were $14.3 billion at June 30, 2026, an increase of $0.3 billion from December 31, 2025. The Bank maintained a highly liquid position at June 30, 2026, with $9.4 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 65.5% of total assets, compared with 65.6% at December 31, 2025.
Loans Receivable
The loan portfolio totaled $4.4 billion at June 30, 2026, relatively flat compared to December 31, 2025.
The allowance for credit losses at June 30, 2026 totaled $27.8 million, an increase of $2.3 million compared to $25.4 million at December 31, 2025. The increase was driven by a net increase in provisioned non-accrual loans.
The loan portfolio represented 30.7% of total assets at June 30, 2026 (December 31, 2025: 31.1%), while loans as a percentage of total deposits was 34.1% at June 30, 2026 (December 31, 2025: 34.5%). Both ratios remain relatively stable at June 30, 2026 compared to December 31, 2025.
As at June 30, 2026, the Bank had gross non-accrual loans of $96.0 million, representing 2.2% of total gross loans, an increase of $4.7 million from $91.3 million, or 2.1% of total loans, at December 31, 2025. The increase in non-accrual loans was driven by a well-secured residential mortgage facility in the Channel Islands & UK segment, with the impact partially offset by the repayment of a separate facility within the same segment.
Investment in Securities
The investment portfolio was $5.7 billion at June 30, 2026, which remains relatively flat compared to December 31, 2025 balances.
The investment portfolio is made up of high-quality assets with 100% invested in AA-or-better-rated securities. The investment book yield was 2.78% during the quarter ended June 30, 2026 compared with 2.78% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio increased to $106.7 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 $13.1 billion for the quarter ended June 30, 2026, which is higher compared to the quarter ended December 31, 2025. Period end balances as at June 30, 2026 were $12.9 billion, higher compared to $12.7 billion in December 31, 2025.

5

Average Balance Sheet2
For the three months ended
June 30, 2026March 31, 2026June 30, 2025
(in $ millions)
Average
balance
($)
Interest
($)
Average
rate
(%)
Average
balance
($)
Interest
($)
Average
rate
(%)
Average
balance
($)
Interest
($)
Average
rate
(%)
Assets
Cash and cash equivalents, reverse repurchase agreements and short-term investments3,856.6 32.0 3.32 3,646.1 30.1 3.35 3,634.3 33.6 3.71 
Investment in securities5,716.1 39.7 2.78 5,714.1 39.2 2.78 5,452.0 36.2 2.67 
   Available-for-sale2,801.3 23.3 3.33 2,742.0 22.3 3.31 2,292.6 18.3 3.21 
   Held-to-maturity2,914.8 16.4 2.26 2,972.1 16.8 2.30 3,159.4 17.9 2.27 
Loans4,413.2 65.0 5.90 4,399.8 63.4 5.84 4,517.7 71.0 6.31 
   Commercial1,166.3 17.4 5.98 1,171.2 16.6 5.75 1,290.7 21.1 6.55 
   Consumer3,246.9 47.6 5.88 3,228.6 46.8 5.88 3,227.0 50.0 6.21 
Interest earning assets13,985.9 136.6 3.92 13,760.0 132.7 3.91 13,603.9 140.9 4.15 
Other assets525.2 455.9 417.6 
Total assets14,511.2 14,215.8 14,021.5 
Liabilities
Deposits - interest bearing10,450.0 (40.7)(1.56)10,143.9 (39.3)(1.57)10,051.2 (49.2)(1.96)
Securities sold under agreements to repurchase
25.7 (0.2)(3.78)6.6 (0.1)(3.99)1.9 — (5.94)
Long-term debt— — — — — — 77.7 (2.3)(11.92)
Interest bearing liabilities10,475.8 (41.0)(1.57)10,150.5 (39.4)(1.57)10,130.8 (51.5)(2.04)
Non-interest bearing current accounts2,649.6 2,684.5 2,602.5 
Other liabilities245.1 249.5 253.4 
Total liabilities13,370.4 13,084.5 12,986.7 
Shareholders’ equity1,140.7 1,131.4 1,034.9 
Total liabilities and shareholders’ equity14,511.2 14,215.8 14,021.5 
Non-interest bearing funds net of
   non-interest earning assets
   (free balance)		3,510.2 3,609.5 3,473.2 
Net interest margin95.6 2.74 93.3 2.75 89.4 2.64 
(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 $147.3 billion and $31.8 billion, respectively, at June 30, 2026, while assets under management were $6.9 billion at June 30, 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 also present certain other non-GAAP financial measures, including tangible common equity and related tangible equity measures. We believe that these non-GAAP financial measures provide 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)June 30, 2026March 31, 2026June 30, 2025
Net income46.9 62.6 53.3 
Non-core items
Non-core expenses
Early retirement program, voluntary separation, redundancies and other non-core compensation costs— — 0.4 
Business acquisition costs16.9 0.6 — 
Total non-core expenses16.9 0.6 0.4 
Total non-core items16.9 0.6 0.4 
Core net income63.9 63.2 53.7 
Average common equity1,135.5 1,148.0 1,055.0 
Less: average goodwill and intangible assets(111.8)(86.0)(91.2)
Average tangible common equity1,023.7 1,062.0 963.8 
Core earnings per share fully diluted 1.58 1.55 1.26 
Return on common equity16.6 %22.1 %20.3 %
Core return on average tangible common equity25.0 %24.1 %22.3 %
Shareholders' equity1,148.7 1,136.1 1,069.1 
Less: goodwill and intangible assets(118.6)(83.9)(92.2)
Tangible common equity1,030.1 1,052.2 977.0 
Total assets14,346.5 14,424.8 14,185.0 
Less: goodwill and intangible assets(118.6)(83.9)(92.2)
Tangible assets14,227.9 14,340.8 14,092.8 
Tangible common equity to tangible assets7.2 %7.3 %6.9 %
Basic participating shares outstanding (in millions)39.3 39.6 41.1 
Tangible book value per common share26.19 26.56 23.77 
Non-interest expenses109.8 90.5 91.8 
Less: non-core expenses(16.9)(0.6)(0.4)
Less: amortization of intangibles(2.4)(2.0)(2.0)
Core non-interest expenses before amortization of intangibles90.5 88.0 89.4 
Core revenue before other gains and losses and provision for credit losses159.0 155.9 146.4 
Core efficiency ratio57.0 %56.4 %61.1 %

7

Conference Call Information:
Butterfield will host a conference call to discuss the Bank’s results on Tuesday, July 28, 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:
This release contains non-GAAP financial measures, including core net income and other financial measures presented on a core basis and tangible common equity and related tangible equity 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, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts and include statements with respect to, among other things, our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, statements regarding the proposed acquisition of CIBC Caribbean by Bank of N.T. Butterfield & Son Limited (“Butterfield”); the expected timing, structure, terms and completion of the proposed transaction; the expected form and mix of consideration, including the issuance of Butterfield ordinary shares; any acquisition of shares from minority shareholders of CIBC Caribbean or related compulsory acquisition, squeeze-out or similar process; the expected ownership, governance, management, capital, regulatory and operating profile of Butterfield following the proposed transaction; the expected financing of the proposed transaction, including the amount, terms and timing of the proposed subordinated debt financing; and the anticipated benefits of the proposed transaction, including expected scale, diversification, cost savings, synergies, earnings accretion, tangible book value per share accretion, capital generation, regulatory capital ratios, risk-weighted assets, liquidity, deposit mix, market position and other financial and operating impacts.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond Butterfield’s control, which may cause the actual results, performance, capital, ownership, financial condition or achievements of Butterfield to be materially different from future results, performance, capital, ownership, financial condition or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Butterfield’s ability to successfully complete the proposed acquisition of CIBC Caribbean on the anticipated terms or timeline or at all; Butterfield’s ability to realize the anticipated benefits of the proposed transaction in the expected timeframes or at all, including cost savings, synergies, balance sheet and capital optimization initiatives, earnings accretion, and tangible book value per share accretion; Butterfield’s ability to successfully integrate CIBC Caribbean’s businesses, operations, systems, controls, compliance programs, risk management framework, personnel and culture into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the failure of any of the conditions to the proposed transaction to be satisfied or waived; the failure to obtain required shareholder, regulatory, governmental, securities exchange, exchange-control or other approvals, or delays in obtaining such approvals; the risk that such approvals may result in the imposition of conditions, restrictions or requirements that could materially adversely affect Butterfield, CIBC Caribbean or the expected benefits of the proposed transaction, or that any proposed conditions, restrictions or requirements; or other actions of regulatory or governmental bodies or securities exchanges could delay or prevent the closing of the proposed transactions; the risk that any minority shareholder offer, compulsory acquisition, squeeze-out or similar process is delayed, not completed or completed on different terms than expected; revenues following the proposed transaction being lower than expected; operating costs, customer loss and business disruption, including difficulties in maintaining relationships with employees, customers, clients, depositors, vendors, suppliers, regulators and other business partners, being greater than expected; risks associated with the disruption of management’s attention from Butterfield’s ongoing business operations due to the proposed transaction; reputational risks and potential adverse reactions to the announcement, pendency or completion of the proposed transaction; the outcome of any legal, regulatory or shareholder proceedings, inquiries or investigations that may be instituted or arise in connection with the proposed transaction; the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected transaction, integration, restructuring, financing, litigation, regulatory, tax, accounting or other costs; dilution caused by the issuance of additional Butterfield ordinary shares in connection with the proposed transaction; changes in Butterfield’s share price, interest rates, foreign exchange rates, capital markets or other market conditions that may affect the transaction financing or expected financial impacts of the proposed transaction; the risk that any subordinated debt or other transaction financing is not obtained on the expected terms, timing or at all; and the risk that assumptions underlying pro forma financial information, purchase accounting, credit marks, fair value marks, integration costs, cost savings, synergies, capital ratios, earnings accretion, tangible book value per share accretion, return metrics and other financial impacts prove to be inaccurate.

Other factors that may impact Butterfield’s future results, performance, financial condition or achievements include worldwide and regional economic conditions, including economic growth and general business conditions in Bermuda, the Cayman Islands, Barbados, The Bahamas, Turks and Caicos, Trinidad and Tobago, the broader Atlantic, Caribbean and other markets in which Butterfield or CIBC Caribbean operates; fluctuations in interest rates, inflation, monetary policy, foreign exchange rates, capital markets, tourism, real estate markets and sovereign credit ratings, including a decline in Bermuda’s sovereign credit rating; any sudden liquidity crisis; changes in customer behavior, including customer borrowing, repayment, investment and deposit practices; unfavorable developments concerning asset quality, credit quality, loan losses, non-performing loans, collateral values, loan concentrations, sovereign exposures, residential mortgage risk weighting, reserves, funding costs, liquidity and deposit flows; competitive product and pricing pressures; security risks, including cybersecurity, data privacy, fraud, financial crime, anti-money laundering and sanctions risks; the impact, extent and timing of technological changes, systems conversions and operational resilience initiatives; risks relating to the success of Butterfield’s updated systems and platforms; capital management activities; changes in laws, regulations, accounting standards, tax laws, regulatory capital or liquidity requirements and supervisory expectations; potential impacts of climate change, hurricanes and other natural disasters; compliance with regulatory requirements; 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 release are expressly qualified in their entirety by this cautionary notice, including, without limitation, the risks and uncertainties described in our reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F and in any subsequent reports furnished or filed with the Securities and Exchange Commission ("SEC"). Such reports are available upon request from Butterfield, or from the SEC including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are based only on information currently available and speaks only as of the date on which it is made. Except as otherwise required by law, Butterfield
8

assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this release, 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 release. 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.
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. Our principal banking operations are located in Bermuda, the Cayman Islands, Guernsey and Jersey, providing deposit, cash management and lending solutions for individual, business and institutional clients. We provide a full range of wealth management services, comprising trust, private banking, asset management and custody, in Bermuda, the Cayman Islands and Guernsey, trust services in The Bahamas, Singapore and Switzerland, and residential property lending in the UK. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details are available at www.butterfieldgroup.com. BF-All
Investor Relations Contact:                Media Relations Contact:        
Noah Fields                    Emily Edwards
Investor Relations                 Group Communications Manager
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: emily.edwards@butterfieldgroup.com     
9

bntb_arxcoverxq220261.jpg


INDEX TO FINANCIAL STATEMENTS
Unaudited Consolidated Financial StatementsPage
Consolidated Balance Sheets (unaudited) as of June 30, 2026 and December 31, 2025
2
Consolidated Statements of Operations (unaudited) for the Three and Six Months Ended June 30, 2026 and 2025
3
Consolidated Statements of Comprehensive Income (unaudited) for the Three and Six Months Ended June 30, 2026 and 2025
4
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) for the Three and Six Months Ended June 30, 2026 and 2025
5
Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 30, 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
June 30, 2026December 31, 2025
Assets
Cash and demand deposits with banks - Non-interest bearing114,703 105,440 
Demand deposits with banks - Interest bearing173,002 171,201 
Cash equivalents - Interest bearing1,152,818 1,432,295 
Cash and cash equivalents1,440,523 1,708,936 
Securities purchased under agreements to resell1,427,079 1,096,238 
Short-term investments863,613 756,543 
Investment in securities
Available-for-sale at fair value (amortized cost: $2,897,919 (2025: $2,785,608))2,791,213 2,696,253 
Held-to-maturity (fair value: $2,437,816 (2025: $2,566,470))2,875,035 2,992,052 
Total investment in securities5,666,248 5,688,305 
Loans
Loans4,430,825 4,407,787 
Allowance for credit losses(27,787)(25,376)
Loans, net of allowance for credit losses4,403,038 4,382,411 
Premises, equipment and computer software, net161,103 158,504 
Goodwill27,284 25,385 
Other intangible assets, net91,272 61,412 
Equity method investments6,770 6,755 
Accrued interest and other assets259,552 210,405 
Total assets14,346,482 14,094,894 
Liabilities
Deposits
Non-interest bearing2,720,286 2,701,145 
Interest bearing10,190,573 9,996,923 
Total deposits12,910,859 12,698,068 
Employee benefit plans84,188 84,466 
Accrued interest and other liabilities202,760 170,509 
Total other liabilities 286,948 254,975 
Total liabilities13,197,807 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: 39,326,687 (2025: 39,948,264)
393 399 
Additional paid-in capital838,886 851,223 
Retained earnings529,443 494,384 
Accumulated other comprehensive income (loss)(220,047)(204,155)
Total shareholders’ equity1,148,675 1,141,851 
Total liabilities and shareholders’ equity14,346,482 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 endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Non-interest income
Asset management10,341 9,379 20,781 18,928 
Banking15,876 14,725 32,161 29,801 
Foreign exchange revenue13,305 11,953 27,874 25,633 
Trust19,176 16,371 35,838 31,999 
Custody and other administration services3,748 3,152 7,450 6,661 
Other non-interest income908 1,439 1,894 2,427 
Total non-interest income63,354 57,019 125,998 115,449 
Interest income
Interest and fees on loans64,951 71,046 128,348 140,481 
Investments (none of the investment securities are intrinsically tax-exempt)
Available-for-sale23,278 18,326 45,627 36,089 
Held-to-maturity16,397 17,906 33,220 36,213 
Cash and cash equivalents, securities purchased under agreements to resell and short-term investments31,949 33,634 62,059 68,141 
Total interest income136,575 140,912 269,254 280,924 
Interest expense
Deposits40,724 49,170 80,054 98,306 
Long-term debt— 2,310 — 3,681 
Securities sold under agreements to repurchase243 27 308 205 
Total interest expense40,967 51,507 80,362 102,192 
Net interest income before provision for credit losses95,608 89,405 188,892 178,732 
Provision for credit (losses) recoveries (1,619)(209)(3,067)170 
Net interest income after provision for credit losses93,989 89,196 185,825 178,902 
Net other gains (losses)990 69 994 94 
Total other gains (losses)990 69 994 94 
Total net revenue158,333 146,284 312,817 294,445 
Non-interest expense
Salaries and other employee benefits47,212 45,441 92,246 90,969 
Technology and communications16,223 16,294 31,639 32,303 
Professional and outside services21,760 5,152 27,293 10,596 
Property8,011 8,786 15,681 17,507 
Indirect taxes5,412 5,849 12,360 12,343 
Non-service employee benefits expense1,050 1,291 2,099 2,628 
Marketing1,986 1,695 3,739 3,470 
Amortization of intangible assets2,368 1,977 4,349 3,874 
Other expenses5,820 5,266 10,945 11,279 
Total non-interest expense109,842 91,751 200,351 184,969 
Net income before income taxes 48,491 54,533 112,466 109,476 
Income tax benefit (expense)(1,579)(1,208)(2,931)(2,387)
Net income46,912 53,325 109,535 107,089 
Earnings per common share
Basic earnings per share1.19 1.28 2.77 2.55 
Diluted earnings per share1.16 1.25 2.69 2.48 
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 endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Net income46,912 53,325 109,535 107,089 
Other comprehensive income (loss), net of taxes
Unrealized net gains (losses) on translation of net investment in foreign operations
(152)2,329 (3,368)6,260 
Net changes on investments transferred to held-to-maturity
1,899 1,982 3,704 3,759 
Unrealized net gains (losses) on available-for-sale investments(6,993)11,451 (17,368)43,362 
Employee benefit plans adjustments484 143 1,140 504 
Other comprehensive income (loss), net of taxes(4,762)15,905 (15,892)53,885 
Total comprehensive income (loss) 42,150 69,230 93,643 160,974 
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 endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Number of sharesIn thousands of
US dollars		Number of sharesIn thousands of
US dollars		Number of sharesIn thousands of
US dollars		Number of sharesIn thousands of
US dollars
Common share capital issued and outstanding
Balance at beginning of period39,610,581 396 42,820,091 428 39,948,264 399 43,537,979 435 
Retirement of shares(289,304)(3)(1,115,462)(11)(1,116,631)(11)(2,210,189)(22)
Issuance of common shares5,410 — 19,452 — 495,054 5 396,291 4 
Balance at end of period39,326,687 393 41,724,081 417 39,326,687 393 41,724,081 417 
Additional paid-in capital
Balance at beginning of period838,761 898,729 851,223 916,394 
Share-based compensation6,233 5,441 11,388 10,782 
Share-based settlements18 438 36 478 
Retirement of shares(6,126)(23,412)(23,755)(46,454)
Issuance of common shares, net of underwriting discounts and commissions— — (6)(4)
Balance at end of period838,886 881,196 838,886 881,196 
Retained earnings
Balance at beginning of period512,219 439,599 494,384 422,461 
Net Income for the period46,912 53,325 109,535 107,089 
Common share cash dividends declared and paid, $0.50 and 1.00 per share (2025: $0.44 and $0.88 per share)
(19,701)(18,355)(39,692)(37,124)
Retirement of shares(9,987)(20,045)(34,784)(37,902)
Balance at end of period529,443 454,524 529,443 454,524 
Treasury common shares
Balance at beginning of period— — 619,212 (23,511)— — 619,212 (23,063)
Purchase of treasury common shares289,304 (16,116)1,115,462 (45,425)1,116,631 (58,550)2,210,189 (86,783)
Retirement of shares(289,304)16,116 (1,115,462)43,468 (1,116,631)58,550 (2,210,189)84,378 
Balance at end of period— — 619,212 (25,468)— — 619,212 (25,468)
Accumulated other comprehensive income (loss)
Balance at beginning of period(215,285)(257,435)(204,155)(295,415)
Other comprehensive income (loss), net of taxes
(4,762)15,905 (15,892)53,885 
Balance at end of period(220,047)(241,530)(220,047)(241,530)
Total shareholders' equity1,148,675 1,069,139 1,148,675 1,069,139 
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)

Six months ended
June 30, 2026June 30, 2025
Cash flows from operating activities
Net income 109,535 107,089 
Adjustments to reconcile net income to operating cash flows
Depreciation, accretion and amortization21,314 20,194 
Provision for credit losses (recoveries) 3,067 (170)
Share-based payments and settlements11,424 11,260 
(Increase) decrease in carrying value of equity method investments(30)(140)
Dividends received from equity method investments15 60 
Changes in operating assets and liabilities
(Increase) decrease in accrued interest receivable and other assets(40,119)36,898 
Increase (decrease) in employee benefit plans, accrued interest payable and other liabilities12,829 (11,636)
Cash provided by (used in) operating activities118,035 163,555 
Cash flows from investing activities
(Increase) decrease in securities purchased under agreements to resell having original maturities of 3 months of less(654,417)141,291 
Securities purchased under agreements to resell having original maturities of more than 3 months: purchases(640,743)(753,252)
Securities purchased under agreements to resell having original maturities of more than 3 months: proceeds from maturities938,733 756,883 
Short-term investments other than restricted cash: proceeds from maturities and sales634,903 684,845 
Short-term investments other than restricted cash: purchases(769,372)(1,164,603)
Available-for-sale investments: proceeds from maturities and pay downs349,415 185,150 
Available-for-sale investments: purchases(462,891)(207,067)
Held-to-maturity investments: proceeds from maturities and pay downs116,950 120,441 
Net (increase) decrease in loans(53,919)69,427 
Additions to premises, equipment and computer software(13,451)(14,401)
Cash disbursed for business acquisition, net of cash acquired(41,140)— 
Cash provided by (used in) investing activities(595,932)(181,286)
Cash flows from financing activities
Net increase (decrease) in deposits296,395 (269,670)
Net increase (decrease) in securities sold under agreements to repurchase having original maturities of 3 months of less(1,820)(90,032)
Repayment of long-term debt— (100,000)
Common shares repurchased(58,550)(86,783)
Cash dividends paid on common shares(39,692)(37,124)
Cash provided by (used in) financing activities196,333 (583,609)
Net effect of exchange rates on cash, cash equivalents and restricted cash(1,692)60,538 
Net increase (decrease) in cash, cash equivalents and restricted cash(283,256)(540,802)
Cash, cash equivalents and restricted cash: beginning of period1,776,683 2,088,542 
Cash, cash equivalents and restricted cash: end of period1,493,427 1,547,740 
Components of cash, cash equivalents and restricted cash at end of period
Cash and cash equivalents1,440,523 1,450,062 
Restricted cash included in short-term investments on the consolidated balance sheets52,904 97,678 
Total cash, cash equivalents and restricted cash at end of period1,493,427 1,547,740 
Supplemental disclosure of non-cash items
Initial recognition of right-of-use assets and operating lease liabilities1,337 766 
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 ("NYSE") 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

Acquired Loans
Effective January 1, 2026, the Bank elected to early adopt ASU No. 2025-08. This standard introduces a single accounting framework for certain acquired loans, requiring entities to recognize an allowance for credit losses at acquisition which is added to the purchase price (the gross-up approach). In accordance with the transition provisions, the Bank will apply the amendments prospectively to all qualifying purchased seasoned loans acquired on or after the adoption date. The adoption of this guidance simplifies acquisition accounting by removing the 'Day 1 double count' of credit losses for these portfolios.

New Accounting Pronouncements
There were no accounting developments issued during the six months ended June 30, 2026 or accounting standards pending adoption which impacted the Bank.

Note 3: Cash and cash equivalents
June 30, 2026December 31, 2025
Non-interest bearing
Cash and demand deposits with banks114,703 105,440 
Interest bearing
Demand deposits with banks173,002 171,201 
Cash equivalents1,152,818 1,432,295 
Sub-total - Interest bearing1,325,820 1,603,496 
Total cash and cash equivalents1,440,523 1,708,936 














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 4: Short-term investments
June 30, 2026December 31, 2025
Unrestricted
Maturing within three months261,082 321,566 
Maturing between three to six months152,717 223,239 
Maturing between six to twelve months396,910 143,991 
Total unrestricted short-term investments810,709 688,796 
Affected by drawing restrictions related to minimum reserve and derivative margin requirements
Interest earning demand and term deposits52,904 67,747 
Total restricted short-term investments52,904 67,747 
Total short-term investments863,613 756,543 
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)


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.
June 30, 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 agencies2,884,324 3,550 (109,182)2,778,692 2,770,749 12,549 (100,827)2,682,471 
Residential mortgage-backed securities13,595 — (1,074)12,521 14,859 — (1,077)13,782 
Total available-for-sale 2,897,919 3,550 (110,256)2,791,213 2,785,608 12,549 (101,904)2,696,253 
Held-to-maturity¹
US government and federal agencies2,875,035 351 (437,570)2,437,816 2,992,052 857 (426,439)2,566,470 
Total held-to-maturity2,875,035 351 (437,570)2,437,816 2,992,052 857 (426,439)2,566,470 
¹For the six months ended June 30, 2026 and June 30, 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 June 30, 2026, comprising 185 securities representing 80.7% of the AFS portfolios' carrying value (December 31, 2025: 156 and 52.1%), represent credit losses. Total gross unrealized AFS losses were 4.9% 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 June 30, 2026, were comprised of 218 securities representing 98.9% of the HTM portfolios’ carrying value (December 31, 2025: 218 and 98.8%). Total gross unrealized HTM losses were 18.2% 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.

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 41.1% - 51.6%, 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.
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)

Less than 12 months12 months or more
June 30, 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 agencies1,176,338 (10,591)1,062,655 (98,591)2,238,993 (109,182)
Residential mortgage-backed securities— — 12,521 (1,074)12,521 (1,074)
Total available-for-sale securities with unrealized losses1,176,338 (10,591)1,075,176 (99,665)2,251,514 (110,256)
Held-to-maturity securities with unrealized losses
US government and federal agencies1,323 (28)2,403,136 (437,542)2,404,459 (437,570)
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
June 30, 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 agencies438,238 998,776 — — 1,341,678 2,778,692 
Residential mortgage-backed securities— — — — 12,521 12,521 
Total available-for-sale438,238 998,776 — — 1,354,199 2,791,213 
Held-to-maturity
US government and federal agencies— — — — 2,875,035 2,875,035 

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.
June 30, 2026December 31, 2025
Pledged investments - secured customer deposit product
 Amortized
 cost 		 Fair
 value 		 Amortized
 cost 		 Fair
 value
Available-for-sale17,227 16,175 19,184 18,331 
Held-to-maturity99,948 88,825 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.









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)

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 June 30, 2026 is 5.78% (December 31, 2025: 5.81%). The interest receivable on total loans as at June 30, 2026 is $10.1 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.


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)

The amortized cost of loans by credit quality classification and allowance for expected credit losses by class of loans is as follows:
June 30, 2026PassSpecial
mention		SubstandardNon-accrualTotal amortized costAllowance for expected credit lossesTotal net loans
Commercial loans
Government252,116 — — — 252,116 (107)252,009 
Commercial and industrial187,525 — 637 16,934 205,096 (17,446)187,650 
Commercial overdrafts67,730 — — 173 67,903 (48)67,855 
Total commercial loans507,371 — 637 17,107 525,115 (17,601)507,514 
Commercial real estate loans
Commercial mortgage476,570 4,327 1,924 2,785 485,606 (981)484,625 
Construction64,128 — — — 64,128 — 64,128 
Total commercial real estate loans540,698 4,327 1,924 2,785 549,734 (981)548,753 
Consumer loans
Automobile financing19,524 — 1 180 19,705 (44)19,661 
Credit card97,958 — 582 — 98,540 (2,181)96,359 
Overdrafts35,025 — — 3 35,028 (245)34,783 
Other consumer1
45,551 — 799 813 47,163 (767)46,396 
Total consumer loans198,058 — 1,382 996 200,436 (3,237)197,199 
Residential mortgage loans2,940,258 3,912 136,250 75,120 3,155,540 (5,968)3,149,572 
Total4,186,385 8,239 140,193 96,008 4,430,825 (27,787)4,403,038 
1 Other consumer loans’ amortized cost includes $5 million of cash and portfolio secured lending and $33 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.


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)

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

June 30, 2026PassSpecial
 mention		SubstandardNon-accrualTotal amortized cost
Loans by origination year
2026375,508 2,312 235 — 378,055 
2025507,644 2,637 — — 510,281 
2024385,774 — 22,934 167 408,875 
2023239,859 — 9,409 54 249,322 
2022681,795 1,275 8,549 42 691,661 
Prior1,791,936 2,015 98,484 95,568 1,988,003 
Overdrafts and credit cards203,869 — 582 177 204,628 
Total amortized cost4,186,385 8,239 140,193 96,008 4,430,825 

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.
June 30, 202630 - 59
days		60 - 89
days		90 days or moreTotal past
 due loans		Total
current		Total
amortized cost
Commercial loans
Government— — — — 252,116 252,116 
Commercial and industrial— 54 16,934 16,988 188,108 205,096 
Commercial overdrafts— — 173 173 67,730 67,903 
Total commercial loans— 54 17,107 17,161 507,954 525,115 
Commercial real estate loans
Commercial mortgage739 113 2,364 3,216 482,390 485,606 
Construction— — — — 64,128 64,128 
Total commercial real estate loans739 113 2,364 3,216 546,518 549,734 
Consumer loans
Automobile financing102 29 180 311 19,394 19,705 
Credit card713 353 390 1,456 97,084 98,540 
Overdrafts31 — 3 34 34,994 35,028 
Other consumer112 15 813 940 46,223 47,163 
Total consumer loans958 397 1,386 2,741 197,695 200,436 
Residential mortgage loans21,312 15,811 117,599 154,722 3,000,818 3,155,540 
Total amortized cost23,009 16,375 138,456 177,840 4,252,985 4,430,825 
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)

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
The allowance for expected credit losses increased during the six months ended June 30, 2026 compared to December 31, 2025 reflecting an additional specific provision on a legacy non-accrual Bermuda commercial facility. This was partially offset by the release of a provision related to a residential mortgage facility in the Channel Islands and UK segment upon partial repayment. 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.

Six months ended June 30, 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)5,497 (117)249 (2,566)3,063 
Recoveries of previous charge-offs— — 890 95 985 
Charge-offs, by origination year
2026— — — — — 
2025— — — — — 
2024— — (52)— (52)
2023— — (17)— (17)
2022— — (19)— (19)
Prior(236)— (33)(65)(334)
Overdrafts and credit cards(7)— (1,191)— (1,198)
Other(10)— (5)(2)(17)
Allowances for expected credit losses at end of period17,601 981 3,237 5,968 27,787 
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)

Six months ended June 30, 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)865 (2,087)(24)1,073 (173)
Recoveries of previous charge-offs— — 1,131 86 1,217 
Charge-offs, by origination year
2025— — — — — 
2024— — — — — 
2023— — — (30)(30)
2022— — — — — 
2021— — — — — 
Prior(264)(43)(19)(92)(418)
Overdrafts and credit cards(11)— (785)(3)(799)
Other30 — 16 117 163 
Allowances for expected credit losses at end of period
12,304 1,137 3,573 8,655 25,669 

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 six months ended June 30, 2026, no interest was recognized on non-accrual loans. No credit deteriorated loans were purchased during the period.

June 30, 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 industrial16,934 — — 16,934 17,130 — — 17,130 
Commercial overdrafts173 — — 173 195 — 105 300 
Total commercial loans17,107 — — 17,107 17,325 — 105 17,430 
Commercial real estate loans
Commercial mortgage1,847 938 — 2,785 2,891 543 — 3,434 
Total commercial real estate loans1,847 938 — 2,785 2,891 543 — 3,434 
Consumer loans
Automobile financing80 100 — 180 99 75 — 174 
Credit cards— — 390 390 — — 466 466 
Overdrafts3 — — 3 5 — 32 37 
Other consumer426 387 — 813 494 335 — 829 
Total consumer loans509 487 390 1,386 598 410 498 1,506 
Residential mortgage loans28,264 46,856 48,008 123,128 49,357 20,203 27,418 96,978 
Total non-performing loans47,727 48,281 48,398 144,406 70,171 21,156 28,021 119,348 













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)

Loan Modifications Made to Borrowers Experiencing Financial Difficulty
The following table summarizes the amortized cost basis of loan modifications as at June 30, 2026 and June 30, 2025 made to borrowers experiencing financial difficulty during the six-months ended June 30, 2026 and June 30, 2025.

Amortized cost basisWeighted average financial effects
June 30, 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 loans951 — 14,032 1,621 0.5 %0112.2 %

Amortized cost basisWeighted average financial effects
June 30, 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 loans1,855 — 5,977 3,074 0.3 %0143.5 %
Age analysis and subsequent default of modified loans.
As at June 30, 2026 and June 30, 2025, all loans for which a concession was granted during the preceding 12 months are current, except for the following:

Residential mortgage loans:
–$0.3 million (June 30, 2025: $5.6 million) of residential mortgage loans for which a term extension was granted are 30 to 59 days past due;
–$5.0 million (June 30, 2025: Nil) of residential mortgages loans for which a term extension was granted are 60 to 89 days past due; and
–$26.7 million (June 30, 2025: $0.1 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.
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)

June 30, 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
Belgium3,388 — — 3,388 3,568 — — 3,568 
Bermuda46,427 1,454,232 249,863 1,750,522 41,849 1,471,971 317,243 1,831,063 
Canada1,254,744 — — 1,254,744 1,276,109 — — 1,276,109 
Cayman Islands39,424 1,050,862 234,550 1,324,836 37,633 1,029,012 198,769 1,265,414 
France— — — — 117,550 — — 117,550 
Germany1,392 — — 1,392 6,121 — — 6,121 
Guernsey2,860 547,722 95,335 645,917 1 541,110 99,753 640,864 
Ireland11,416 — — 11,416 26,027 — — 26,027 
Japan154,008 — — 154,008 102,407 — — 102,407 
Jersey— 336,318 133,383 469,701 — 306,190 65,666 371,856 
Mauritius921 — — 921 686 — — 686 
Norway6,279 — — 6,279 90,585 — — 90,585 
Switzerland15,223 — — 15,223 9,642 — — 9,642 
The Bahamas142 2,614 — 2,756 186 2,895 — 3,081 
United Kingdom1,625,198 1,039,077 102,756 2,767,031 1,357,142 1,056,609 143,314 2,557,065 
United States566,672 — — 566,672 490,782 — — 490,782 
Other3,121 — — 3,121 1,429 — — 1,429 
Total gross exposure3,731,215 4,430,825 815,887 8,977,927 3,561,717 4,407,787 824,745 8,794,249 

Note 8: Deposits

June 30, 2026December 31, 2025
Non-interest bearing demand deposits2,720,286 2,701,145 
Interest bearing demand deposits6,332,564 6,055,342 
Interest bearing term deposits
3,858,009 3,941,581 
Total deposits12,910,859 12,698,068 

June 30, 2026
As of June 30, 2026, the remaining maturities of interest-bearing term deposits in each of the 12-month periods ending June 30 were as follows:
20273,809,251 
202822,825 
202912,078 
20308,097 
20315,758 
Total term deposits3,858,009 
¹The weighted-average interest rate on interest-bearing demand deposits as at June 30, 2026 is 0.78% (December 31, 2025: 0.74%).
Uninsured term deposits totaled $3.8 billion as at June 30, 2026 (December 31, 2025: $3.9 billion)

By Type and SegmentJune 30, 2026December 31, 2025
Payable
on demand		Payable on a
fixed date		TotalPayable
on demand		Payable on a
fixed date		Total
Bermuda3,770,238 1,011,990 4,782,228 3,529,577 951,658 4,481,235 
Cayman2,912,688 908,736 3,821,424 2,980,600 1,085,168 4,065,768 
Channel Islands and the UK2,369,924 1,937,283 4,307,207 2,246,310 1,904,755 4,151,065 
Total deposits9,052,850 3,858,009 12,910,859 8,756,487 3,941,581 12,698,068 





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)

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 six months ended June 30, 2026, there have been no material revisions to these estimates.
Three months endedSix months ended
Line item in the consolidated statements of operationsJune 30, 2026June 30, 2025June 30, 2026June 30, 2025
Defined benefit pension expense (income)
Interest cost Non-service employee benefits expense1,212 1,318 2,425 2,599 
Expected return on plan assets Non-service employee benefits expense(1,673)(1,709)(3,347)(3,328)
Amortization of net actuarial (gains) lossesNon-service employee benefits expense510 587 1,019 1,170 
Amortization of prior service (credit) costNon-service employee benefits expense21 21 42 41 
Total defined benefit pension expense (income)70 217 139 482 
Post-retirement medical benefit expense (income)
Service costSalaries and other employee benefits3 11 6 22 
Interest costNon-service employee benefits expense1,008 1,093 2,017 2,185 
Amortization of net actuarial (gains) lossesNon-service employee benefits expense(159)131 (319)262 
Amortization of prior service (credit) costNon-service employee benefits expense131 (150)262 (301)
Total post-retirement medical benefit expense (income)983 1,085 1,966 2,168 

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 June 30, 2026, $120.8 million (December 31, 2025: $125.0 million) of standby letters of credit were issued under this facility.

Outstanding unfunded commitments to extend creditJune 30, 2026December 31, 2025
Commitments to extend credit586,648 577,370 
Documentary and commercial letters of credit758 859 
Total unfunded commitments to extend credit587,406 578,229 
Allowance for credit losses(136)(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.

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)

June 30, 2026December 31, 2025
Outstanding financial guaranteesGrossCollateralNetGrossCollateralNet
Standby letters of credit227,419 210,969 16,450 245,398 223,245 22,153 
Letters of guarantee1,062 1,026 36 1,118 1,081 37 
Total228,481 211,995 16,486 246,516 224,326 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 June 30, 2026, the Bank had 15 open positions (December 31, 2025: 13) in resell agreements with a remaining maturity of less than 365 days involving pools of mortgages issued by Non-US government debt securities. The carrying value of these resell agreements is $1.4 billion (December 31, 2025: $1.1 billion) and are included in securities purchased under agreements to resell on the consolidated balance sheets.

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 endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Lease costs
Operating lease costs1,6141,9443,1373,785 
Short-term lease costs364312734607 
Total net lease cost1,9782,2563,8714,392 
Operating lease income39792798198 
Other information for the period
Right-of-use assets related to new operating lease liabilities1,337 — 1,337 766 
Operating cash flows from operating leases1,394 1,529 2,681 2,974 
Other information at end of periodJune 30, 2026December 31, 2025
Operating leases right-of-use assets (included in other assets on the balance sheets)38,47538,079
Operating lease liabilities (included in other liabilities on the balance sheets)39,08638,725
Weighted average remaining lease term for operating leases (in years)10.9111.53
Weighted average discount rate for operating leases5.89 %5.90 %
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(3,255)
Operating lease liabilities38,725


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)

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 SegmentJune 30, 2026December 31, 2025
Bermuda5,529,620 5,111,127 
Cayman 4,101,690 4,425,113 
Channel Islands and the UK4,807,192 4,599,096 
Other76,463 70,731 
Total assets before inter-segment eliminations14,514,965 14,206,067 
Less: inter-segment eliminations(168,483)(111,173)
Total14,346,482 14,094,894 




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 June 30, 2026BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 54,010 36,861 45,678 26 136,575 — 136,575 
Interest income - Inter-segment148 1,181 — — 1,329 (1,329)— 
Interest income Total54,158 38,042 45,678 26 137,904 (1,329)136,575 
Interest expense
Interest expense 9,171 7,120 24,676 — 40,967 — 40,967 
Interest expense - Inter-segment702 — 627 — 1,329 (1,329)— 
Interest expense Total9,873 7,120 25,303 — 42,296 (1,329)40,967 
Net interest income
Net interest income 44,839 29,741 21,002 26 95,608 — 95,608 
Net interest income - Inter-segment(554)1,181 (627)— — — — 
Net interest income Total44,285 30,922 20,375 26 95,608 — 95,608 
Non-interest income26,313 18,497 12,768 12,859 70,437 (7,083)63,354 
Allowance for credit losses(3,074)116 1,339 — (1,619)— (1,619)
Net revenue before gains and losses67,524 49,535 34,482 12,885 164,426 (7,083)157,343 
Gains and losses3 — 987 — 990 — 990 
Total net revenue67,527 49,535 35,469 12,885 165,416 (7,083)158,333 
Expenses
Salaries and other employee benefits18,753 7,042 13,467 7,950 47,212 — 47,212 
Technology and communications7,982 3,205 2,576 402 14,165 — 14,165 
Non-income taxes4,037 475 524 376 5,412 — 5,412 
Professional and outside services19,688 543 1,170 359 21,760 — 21,760 
Property1,762 731 1,590 737 4,820 — 4,820 
Amortization of intangible assets357 275 1,301 435 2,368 — 2,368 
Depreciation3,319 1,152 662 116 5,249 — 5,249 
Income tax benefit (expense) — — 1,270 309 1,579 — 1,579 
Other expenses10,964 3,691 143 1,141 15,939 (7,083)8,856 
Expenses Total66,862 17,114 22,703 11,825 118,504 (7,083)111,421 
Net income665 32,421 12,766 1,060 46,912 — 46,912 














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)

Three months ended June 30, 2025BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 53,527 40,123 47,227 35 140,912 — 140,912 
Interest income - Inter-segment1 795 2 — 798 (798)— 
Interest income Total53,528 40,918 47,229 35 141,710 (798)140,912 
Interest expense
Interest expense 11,747 10,480 29,280 — 51,507 — 51,507 
Interest expense - Inter-segment788 — 10 — 798 (798)— 
Interest expense Total12,535 10,480 29,290 — 52,305 (798)51,507 
Net interest income
Net interest income 41,780 29,643 17,947 35 89,405 — 89,405 
Net interest income - Inter-segment(787)795 (8)— — — — 
Net interest income Total40,993 30,438 17,939 35 89,405 — 89,405 
Non-interest income24,272 17,388 10,456 11,251 63,367 (6,348)57,019 
Allowance for credit losses75 (36)(248)— (209)— (209)
Net revenue before gains and losses65,340 47,790 28,147 11,286 152,563 (6,348)146,215 
Gains and losses1 — 68 — 69 — 69 
Total net revenue65,341 47,790 28,215 11,286 152,632 (6,348)146,284 
Expenses
Salaries and other employee benefits19,437 7,106 11,391 7,507 45,441 — 45,441 
Technology and communications7,875 3,534 2,263 368 14,040 — 14,040 
Non-income taxes4,439 417 632 361 5,849 — 5,849 
Professional and outside services3,176 500 1,209 267 5,152 — 5,152 
Property2,293 742 1,925 643 5,603 — 5,603 
Amortization of intangible assets357 275 914 431 1,977 — 1,977 
Depreciation3,434 1,150 724 129 5,437 — 5,437 
Income tax benefit (expense) — — 932 276 1,208 — 1,208 
Other expenses10,820 3,586 (663)857 14,600 (6,348)8,252 
Expenses Total51,831 17,310 19,327 10,839 99,307 (6,348)92,959 
Net income13,510 30,480 8,888 447 53,325 — 53,325 

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)

Six months ended June 30, 2026BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 104,637 74,800 89,761 56 269,254 — 269,254 
Interest income - Inter-segment148 1,866 — — 2,014 (2,014)— 
Interest income Total104,785 76,666 89,761 56 271,268 (2,014)269,254 
Interest expense
Interest expense17,035 14,495 48,832 — 80,362 — 80,362 
Interest expense - Inter-segment1,387 — 627 — 2,014 (2,014)— 
Interest expense Total18,422 14,495 49,459 — 82,376 (2,014)80,362 
Net interest income
Net interest income 87,602 60,305 40,929 56 188,892 — 188,892 
Net interest income - Inter-segment(1,239)1,866 (627)— — — — 
Net interest income Total86,363 62,171 40,302 56 188,892 — 188,892 
Non-interest income52,412 38,007 24,052 25,608 140,079 (14,081)125,998 
Allowance for credit losses(5,166)90 2,009 — (3,067)— (3,067)
Net revenue before gains and losses133,609 100,268 66,363 25,664 325,904 (14,081)311,823 
Gains and losses3 — 991 — 994 — 994 
Total net revenue133,612 100,268 67,354 25,664 326,898 (14,081)312,817 
Expenses
Salaries and other employee benefits37,283 13,823 25,569 15,571 92,246 — 92,246 
Technology and communications15,602 6,230 4,925 769 27,526 — 27,526 
Non-income taxes9,241 960 1,278 881 12,360 — 12,360 
Professional and outside services23,397 1,063 2,172 661 27,293 — 27,293 
Property3,446 1,418 3,059 1,402 9,325 — 9,325 
Amortization of intangible assets714 551 2,212 872 4,349 — 4,349 
Depreciation6,669 2,249 1,319 230 10,467 — 10,467 
Income tax benefit (expense) — — 2,276 655 2,931 — 2,931 
Other expenses21,771 7,444 (633)2,284 30,866 (14,081)16,785 
Expenses Total118,123 33,738 42,177 23,325 217,363 (14,081)203,282 
Net income15,489 66,530 25,177 2,339 109,535 — 109,535 



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)

Six months ended June 30, 2025BermudaCaymanChannel Islands and the UKOtherTotal before eliminationsInter-segment eliminationsTotal
Interest income
Interest income 107,717 79,949 93,185 73 280,924 — 280,924 
Interest income - Inter-segment278 1,761 35 — 2,074 (2,074)— 
Interest income Total107,995 81,710 93,220 73 282,998 (2,074)280,924 
Interest expense
Interest expense23,549 20,781 57,862 — 102,192 — 102,192 
Interest expense - Inter-segment1,785 — 289 — 2,074 (2,074)— 
Interest expense Total25,334 20,781 58,151 — 104,266 (2,074)102,192 
Net interest income
Net interest income 84,168 59,168 35,323 73 178,732 — 178,732 
Net interest income - Inter-segment(1,507)1,761 (254)— — — — 
Net interest income Total82,661 60,929 35,069 73 178,732 — 178,732 
Non-interest income47,230 36,993 21,487 22,092 127,802 (12,353)115,449 
Allowance for credit losses2,952 (156)(2,626)— 170 — 170 
Net revenue before gains and losses132,843 97,766 53,930 22,165 306,704 (12,353)294,351 
Gains and losses22 — 72 — 94 — 94 
Total net revenue132,865 97,766 54,002 22,165 306,798 (12,353)294,445 
Expenses
Salaries and other employee benefits38,630 15,007 22,841 14,491 90,969 — 90,969 
Technology and communications15,805 7,007 4,374 696 27,882 — 27,882 
Non-income taxes9,307 992 1,242 802 12,343 — 12,343 
Professional and outside services6,740 972 2,414 470 10,596 — 10,596 
Property4,639 1,530 3,727 1,263 11,159 — 11,159 
Amortization of intangible assets714 551 1,767 842 3,874 — 3,874 
Depreciation6,855 2,224 1,436 254 10,769 — 10,769 
Income tax benefit (expense) — — 1,862 525 2,387 — 2,387 
Other expenses20,847 7,182 13 1,688 29,730 (12,353)17,377 
Expenses Total103,537 35,465 39,676 21,031 199,709 (12,353)187,356 
Net income29,328 62,301 14,326 1,134 107,089 — 107,089 

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.

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)

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 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.
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)

June 30, 2026Derivative instrumentNumber of contractsNotional 
amounts 		Gross
 positive
fair value		Gross
 negative
fair value		Net 
fair value 
Risk management derivatives
Net investment hedgesCurrency swaps3 98,166 588 (232)356 
Fair value hedgesCurrency swaps2 123,149 107 (1,305)(1,198)
Derivatives not formally designated as hedging instrumentsCurrency swaps76 1,639,163 35,329 (3,494)31,835 
Subtotal risk management derivatives1,860,478 36,024 (5,031)30,993 
Client services derivativesSpot and forward foreign exchange75 163,312 968 (889)79 
Total derivative instruments2,023,790 36,992 (5,920)31,072 
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 June 30, 2026 foreign denominated deposits of £227.5 million (December 31, 2025: £211.2 million); SGD0.1 million (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
June 30, 2026Gross fair value of derivativesCash collateral
 received / paid		Net exposures
Derivative assets
Spot and forward foreign exchange and currency swaps36,992 (4,681)32,311 — (98)32,213 
Derivative liabilities
Spot and forward foreign exchange and currency swaps5,920 (4,681)1,239 — (424)815 
Net positive fair value31,072 
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)
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)

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 endedSix months ended
Derivative instrumentConsolidated statements of operations line itemJune 30, 2026June 30, 2025June 30, 2026June 30, 2025
Spot and forward foreign exchangeForeign exchange revenue(149)— (119)1 
Currency swaps, not designated as hedgeForeign exchange revenue18,802 (25,805)35,496 (59,364)
Currency swaps - fair value hedgesForeign exchange revenue68 2,831 (1,381)9,534 
Total net gains (losses) recognized in net income18,721 (22,974)33,996 (49,829)
Three months endedSix months ended
Derivative instrumentConsolidated statements of comprehensive income line itemJune 30, 2026June 30, 2025June 30, 2026June 30, 2025
Currency swaps - net investment hedgeUnrealized net gains (losses) on translation of net investment in foreign operations(124)(1,406)1,279 (1,639)
Total net gains (losses) recognized in comprehensive income(124)(1,406)1,279 (1,639)

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, forward foreign exchange contracts and securities sold under agreements to repurchase.

There were no Level 3 investments as at June 30, 2026 and December 31, 2025.

There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the six months ended June 30, 2026 and the year ended December 31, 2025.

June 30, 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 agencies1,437,014 1,341,678 2,778,692 1,342,083 1,340,388 2,682,471 
Residential mortgage-backed securities— 12,521 12,521 — 13,782 13,782 
Total available-for-sale1,437,014 1,354,199 2,791,213 1,342,083 1,354,170 2,696,253 
Other assets - Derivatives— 32,311 32,311 — 1,064 1,064 
Financial liabilities
Other liabilities - Derivatives— 1,239 1,239 — 5,267 5,267 
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)

Items Other Than Those Recognized at Fair Value on a Recurring Basis:
June 30, 2026December 31, 2025
LevelCarrying
amount		Fair
 value		Appreciation /
(depreciation)		Carrying
amount		Fair
 value		Appreciation /
(depreciation)
Financial assets
Cash and cash equivalentsLevel 11,440,523 1,440,523 — 1,708,936 1,708,936 — 
Securities purchased under agreements to resellLevel 21,427,079 1,427,079 — 1,096,238 1,096,238 — 
Short-term investmentsLevel 1863,613 863,613 — 756,543 756,543 — 
Investments held-to-maturityLevel 22,875,035 2,437,816 (437,219)2,992,052 2,566,470 (425,582)
Loans, net of allowance for credit lossesLevel 24,403,038 4,380,455 (22,583)4,382,411 4,367,439 (14,972)
Financial liabilities
Term depositsLevel 23,858,009 3,860,874 (2,865)3,941,581 3,944,728 (3,147)

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 six months ended June 30, 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 six months ended June 30, 2026, the average number of outstanding awards of unvested common shares was 1.8 million (June 30, 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 endedSix months ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Net income46,912 53,325 109,535 107,089 
Basic Earnings Per Share
Weighted average number of common shares issued39,430 42,255 39,606 42,697 
Weighted average number of common shares held as treasury stock— (619)— (619)
Weighted average number of common shares (in thousands)39,430 41,636 39,606 42,078 
Basic Earnings Per Share1.19 1.28 2.77 2.55 
Diluted Earnings Per Share
Weighted average number of common shares39,430 41,636 39,606 42,078 
Net dilution impact related to awards of unvested common shares1,017 1,017 1,078 1,035 
Weighted average number of diluted common shares (in thousands)40,447 42,653 40,684 43,113 
Diluted Earnings Per Share1.16 1.25 2.69 2.48 






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)

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 June 30, 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 six months ended June 30, 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 six months ended June 30, 2026, 5,128 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)
Six months ended
June 30, 2026June 30, 2025
EDIPELTIPEDIPELTIP
Outstanding at beginning of period500 1,236 628 1,151 
Granted441 230 124 332 
Vested (fair value in 2026: $26.2 million, 2025: $15.5 million )
(119)(376)(116)(268)
Forfeitures (resignations, retirements, redundancies)— — — (1)
Outstanding at end of period822 1,090 636 1,214 

Share-based Compensation Cost Recognized in the Financial Statements
Six months ended
June 30, 2026June 30, 2025
EDIP and ELTIP11,406 10,701 
ESPP (employee contributions and value of discount from market price)285 292 
Share-based Compensation Cost Recognized in Net Income11,691 10,993 
Deduct: Fair value of awards withheld for employees' payroll tax purposes(303)(211)
Share-based Compensation Cost Recognized in Additional Paid-in Capital11,388 10,782 

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)

Unrecognized Share-based Compensation Cost
June 30, 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
EDIP25,265 4.916,573 1.52
ELTIP
Time vesting shares— 0.008 0.12
Performance vesting shares19,755 1.9315,053 1.65
Total unrecognized expense45,020 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 program has been paused subsequent to the CIBC Caribbean acquisition announcement in May 2026.

The table below presents information about common stock repurchases:
Three months endedSix Months Ended
Common share repurchasesJune 30, 2026
June 30, 2025
June 30, 2026June 30, 2025
Acquired number of shares (to the nearest 1)289,304 1,115,462 1,116,631 2,210,189 
Average cost per common share55.71 40.72 52.43 39.26 
Total cost (in US dollars)16,116,431 45,425,069 58,550,005 86,782,848 

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
Six months ended June 30, 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(3,368)3,704 (17,368)1,197 (57)1,140 (15,892)
Balance at end of period(23,140)(62,320)(105,655)(45,920)16,988 (28,932)(220,047)
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
Six months ended June 30, 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 taxes6,260 3,759 43,362 543 (39)504 53,885 
Balance at end of period(19,931)(70,160)(118,913)(48,739)16,213 (32,526)(241,530)
30
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 endedSix months ended
 Line item in the consolidated
statements of operations, if any		June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Net unrealized gains (losses) on translation of net investment in foreign operations adjustments
Foreign currency translation adjustmentsN/A(548)(8,835)(10,309)6,260 
Gains (losses) on net investment hedgeN/A396 11,164 6,941 — 
Net change(152)2,329 (3,368)6,260 
Held-to-maturity investment adjustments
Amortization of net gains (losses) to net incomeInterest income on investments1,899 1,982 3,704 3,759 
Net change1,899 1,982 3,704 3,759 
Available-for-sale investment adjustments
Gross unrealized gains (losses)N/A(6,937)10,513 (17,678)43,362 
Foreign currency translation adjustments of related balancesN/A(56)938 310 — 
Net change(6,993)11,451 (17,368)43,362 
Employee benefit plans adjustments
Defined benefit pension plan
Amortization of net actuarial (gains) lossesNon-service employee benefits expense510 587 1,019 1,170 
Amortization of prior service (credit) costNon-service employee benefits expense21 21 42 41 
Foreign currency translation adjustments of related balancesN/A(19)(446)136 (668)
Net change512 162 1,197 543 
Post-retirement healthcare plan
Amortization of net actuarial (gains) lossesNon-service employee benefits expense(159)131 (319)262 
Amortization of prior service (credit) costNon-service employee benefits expense131 (150)262 (301)
Net change(28)(19)(57)(39)
Other comprehensive income (loss), net of taxes(4,762)15,905 (15,892)53,885 

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 six months ended June 30, 2026, the Bank declared and paid cash dividends of $1.00 (June 30, 2025: $0.88) 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 June 30, 2026 and December 31, 2025. The following table sets forth the Bank's capital adequacy in accordance with the relevant Basel framework:

31
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

June 30, 2026December 31, 2025
ActualRegulatory minimumActualRegulatory minimum
Capital
CET 1 capital1,093,929 N/A1,102,302 N/A
Tier 1 capital1,093,929 N/A1,102,302 N/A
Tier 2 capital5,865 N/A6,189 N/A
Total capital1,099,794 N/A1,108,492 N/A
Risk Weighted Assets3,995,552 N/A3,991,389 N/A
Leverage Ratio Exposure Measure14,771,545 N/A14,520,704 N/A
Capital Ratios (%)
CET 1 capital27.4 %10.0 %27.6 %10.0 %
Tier 1 capital27.4 %11.5 %27.6 %11.5 %
Total capital27.5 %13.5 %27.8 %13.5 %
Leverage ratio7.4 %5.0 %7.6 %5.0 %

Note 21: Business combinations

Rawlinson & Hunter Guernsey Limited Acquisition
On February 19, 2026, the Bank announced that it had entered into an agreement to acquire Rawlinson & Hunter Limited (“R&H Guernsey”), the independently owned Guernsey member firm of the Rawlinson & Hunter International Network (“R&H”).

On April 15, 2026, the transaction completed as planned and the aggregate purchase price of $42.8 million (£31.7 million) was paid in cash. During 2026 and 2027, it is expected that R&H Guernsey's business and employees will be integrated with the existing Butterfield operations in Guernsey and operate under the Butterfield name.

The fair value of the net assets acquired and allocation of purchase price is summarized as follows:

As at April 15, 2026
Total consideration transferred42,761 
Assets acquired
Cash and cash equivalents1,622 
Intangible assets - Customer relationships35,349 
Other assets5,428 
Total assets acquired42,399 
Liabilities assumed
Other liabilities(1,946)
Total liabilities assumed(1,946)
Excess purchase price - Goodwill2,308 

The acquired customer relationships intangible assets have an estimated finite useful life of 15 years.

The Bank incurred legal and professional transaction expenses related to this acquisition amounting to $1.0 million, all of which has been expensed and presented in the Consolidated Statements of Operations during the six months ended June 30, 2026.

For the period beginning on April 15, 2026 (i.e. acquisition date) to June 30, 2026, the amount of revenues and net income relating to the acquired R&H Guernsey operations that were not inextricably merged into the Bank’s operations were $2.5 million and a net income of $0.4 million, respectively.

The following selected unaudited pro forma financial information has been provided to present a summary of the combined results of the Bank and the acquired R&H Guernsey operations, assuming the transaction had been effective on January 1, 2025. The unaudited pro forma data is for informational purposes only and does not necessarily represent results that would have occurred if the transaction had taken place on the basis assumed above. The pro forma financial information has been prepared based on the actual results realized by R&H Guernsey from January 1, 2025 to June 30, 2025 and from January 1, 2026 to June 30, 2026.

32
The Bank of N.T. Butterfield & Son Limited
Notes to the Consolidated Financial Statements (unaudited) (continued)
(In thousands of US dollars, unless otherwise stated)

Six months ended
Unaudited pro forma financial informationJune 30, 2026June 30, 2025
Total net revenue316,729 300,810 
Total non-interest operating (expense)(206,716)(191,161)
Pro forma net income post business combination110,013 109,649 

CIBC Caribbean Acquisition
On May 28, 2026, the Bank announced that it has entered into an agreement to acquire Canadian Imperial Bank of Commerce's ("CIBC") 91.7% interest in CIBC Caribbean Bank Limited (“CIBC Caribbean”). The combined entity would have approximately $29 billion in assets.

The total consideration to be paid for 100% of CIBC Caribbean' shares (i.e. shares held by CIBC and shares held by minority shareholders on the acquisition date, if any) will be comprised of $1,091 million in cash and $703 million in Butterfield shares valued by reference to Butterfield’s 10-day NYSE volume-weighted average price of $55.66 as of May 27, 2026, for an aggregate purchase price of $1,794 million, or $1.14 per CIBC Caribbean share.

In connection with the transaction, Butterfield has obtained commitments for $700 million of Tier 2 capital-qualifying subordinated debt financing which is expected to be raised prior to closing.

The transaction is expected to close in the first half of 2027, subject to receipt of Butterfield shareholder and regulatory approvals and the satisfaction of customary closing conditions. Following the transaction, Butterfield’s ordinary shares will continue to be listed on the NYSE and the BSX, and Butterfield intends to undertake additional secondary share listings on the Barbados Stock Exchange, the Bahamas International Securities Exchange, and the Trinidad & Tobago Stock Exchange, subject to local listing and regulatory requirements.

Following completion of the transaction, CIBC will own an approximately 22% stake in the combined entity. Under the terms of Butterfield and CIBC’s shareholder agreement, CIBC will then initially have the right to appoint two directors to Butterfield’s Board. The shareholder agreement will also provide for certain lockup restrictions with respect to CIBC’s stake in Butterfield, and include customary standstill obligations and registration rights.

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 June 30, 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(4)
Balance at June 30, 2026
4,214 

Consolidated balance sheetsJune 30, 2026December 31, 2025
Deposits44,805 92,182 
Three months endedSix months ended
Consolidated statements of operations
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest and fees on loans17 279 58 587 
Total non-interest expense57 190 143 214 
Other non-interest income25 61 100 153 

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 sheetsJune 30, 2026December 31, 2025
Loans8,432 8,884 
Deposits666 545 
Accrued interest and other liabilities189 175 

33
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 endedSix months ended
Consolidated statements of operations
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest and fees on loans164 178 332 357 
Total non-interest expense502 228 984 439 
Other non-interest income 64 62 128 125 

Investments
As at June 30, 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 sheetsJune 30, 2026December 31, 2025
Loans6,161 — 
Deposits45,267 9,365 
Accrued interest and other assets890 461 
Three months endedSix months ended
Consolidated statements of operations
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Asset management3,459 3,037 6,848 5,773 
Custody and other administration services510 375 920 726 
Other non-interest income196 217 363 300 
Interest and fees on loans94 — 538 — 

Note 23: Subsequent events

On July 27, 2026, the Board of Directors declared an interim dividend of $0.50 per common share to be paid on August 26, 2026 to shareholders of record on August 12, 2026.

34
Second Quarter 2026 The Bank of N.T. Butterfield & Son Limited Earnings Presentation July 28, 2026

 

2 Important Notice and Disclaimer Forward-Looking Statements: Certain of the statements made in this presentation are forward-looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts and include statements with respect to, among other things, our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, including, without limitation, statements regarding the proposed acquisition of CIBC Caribbean by Bank of N.T. Butterfield & Son Limited (“Butterfield”); the expected timing, structure, terms and completion of the proposed transaction; the expected form and mix of consideration, including the issuance of Butterfield ordinary shares; any acquisition of shares from minority shareholders of CIBC Caribbean or related compulsory acquisition, squeeze-out or similar process; the expected ownership, governance, management, capital, regulatory and operating profile of Butterfield following the proposed transaction; the expected financing of the proposed transaction, including the amount, terms and timing of the proposed subordinated debt financing; the anticipated benefits of the proposed transaction, including expected scale, diversification, cost savings, synergies, earnings accretion, tangible book value per share accretion, capital generation, regulatory capital ratios, risk-weighted assets, liquidity, deposit mix, market position and other financial and operating impacts; and other forecasts, targets, projections and estimates included in this presentation. Forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond Butterfield’s control, which may cause the actual results, performance, capital, ownership, financial condition or achievements of Butterfield to be materially different from future results, performance, capital, ownership, financial condition or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Butterfield’s ability to successfully complete the proposed acquisition of CIBC Caribbean on the anticipated terms or timeline or at all; Butterfield’s ability to realize the anticipated benefits of the proposed transaction in the expected timeframes or at all, including cost savings, synergies, balance sheet and capital optimization initiatives, earnings accretion, and tangible book value per share accretion; Butterfield’s ability to successfully integrate CIBC Caribbean’s businesses, operations, systems, controls, compliance programs, risk management framework, personnel and culture into those of Butterfield; the risk that such integration may be more difficult, time-consuming or costly than expected; the failure of any of the conditions to the proposed transaction to be satisfied or waived; the failure to obtain required shareholder, regulatory, governmental, securities exchange, exchange-control or other approvals, or delays in obtaining such approvals; the risk that such approvals may result in the imposition of conditions, restrictions or requirements that could materially adversely affect Butterfield, CIBC Caribbean or the expected benefits of the proposed transaction or that any proposed conditions, restrictions or requirements or other actions of regulatory or governmental bodies or securities exchanges could delay or prevent the closing of the proposed transaction; the risk that any minority shareholder offer, compulsory acquisition, squeeze-out or similar process is delayed, not completed or completed on different terms than expected; revenues following the proposed transaction being lower than expected; operating costs, customer loss and business disruption, including difficulties in maintaining relationships with employees, customers, clients, depositors, vendors, suppliers, regulators and other business partners, being greater than expected; risks associated with the disruption of management’s attention from Butterfield’s ongoing business operations due to the proposed transaction; reputational risks and potential adverse reactions to the announcement, pendency or completion of the proposed transaction; the outcome of any legal, regulatory or shareholder proceedings, inquiries or investigations that may be instituted or arise in connection with the proposed transaction; the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected transaction, integration, restructuring, financing, litigation, regulatory, tax, accounting or other costs; dilution caused by the issuance of additional Butterfield ordinary shares in connection with the proposed transaction; changes in Butterfield’s share price, interest rates, foreign exchange rates, capital markets or other market conditions that may affect the transaction financing or expected financial impacts of the proposed transaction; the risk that any subordinated debt or other transaction financing is not obtained on the expected terms, timing or at all; and the risk that assumptions underlying pro forma financial information, purchase accounting, credit marks, fair value marks, integration costs, cost savings, synergies, capital ratios, earnings accretion, tangible book value per share accretion, return metrics and other financial impacts prove to be inaccurate. Other factors that may impact Butterfield’s future results, performance, financial condition or achievements include worldwide and regional economic conditions, including economic growth and general business conditions in Bermuda, the Cayman Islands, Barbados, The Bahamas, Turks and Caicos, Trinidad and Tobago, the broader Atlantic, Caribbean and other markets in which Butterfield or CIBC Caribbean operates; fluctuations in interest rates, inflation, monetary policy, foreign exchange rates, capital markets, tourism, real estate markets and sovereign credit ratings, including a decline in Bermuda’s sovereign credit rating; any sudden liquidity crisis; changes in customer behavior, including customer borrowing, repayment, investment and deposit practices; unfavorable developments concerning asset quality, credit quality, loan losses, non- performing loans, collateral values, loan concentrations, sovereign exposures, residential mortgage risk weighting, reserves, funding costs, liquidity and deposit flows; competitive product and pricing pressures; security risks, including cybersecurity, data privacy, fraud, financial crime, anti-money laundering and sanctions risks; the impact, extent and timing of technological changes, systems conversions and operational resilience initiatives; risks relating to the success of Butterfield’s updated systems and platforms; capital management activities; changes in laws, regulations, accounting standards, tax laws, regulatory capital or liquidity requirements and supervisory expectations; potential impacts of climate change, hurricanes and other natural disasters; compliance with regulatory requirements; 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 presentation are expressly qualified in their entirety by this cautionary notice, including, without limitation, the risks and uncertainties described in our reports and filings filed with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our most recent Form 20-F and in any subsequent reports furnished or filed with the SEC. Such reports are available upon request from Butterfield, or from the SEC, including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are based only on information currently available and speaks only as of the date on which it is 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 presentation, 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 presentation. 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.

 

3 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, tangible common equity and related measures including tangible common equity to tangible assets ratio, and run rate earnings. 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 the historical non-GAAP measures to corresponding GAAP financial measures are provided in the Appendix of this presentation. To the extent this presentation includes forecasts using non-GAAP financial measures, including run rate earnings, Butterfield is unable to provide reconciliations to the most directly comparable GAAP financial measures without unreasonable efforts because certain information necessary to prepare such reconciliations depends on future events and cannot be reasonably estimated. Such unavailable information may include purchase accounting adjustments, integration costs and other items that may significantly affect reported GAAP results. Presentation of Financial Information This presentation includes certain combined historical financial information relating to the proposed acquisition of CIBC Caribbean, including total assets and total deposits. This presentation also includes certain combined forecast financial information relating to the proposed transaction, including tangible common equity and run rate earnings. The combined financial information has been prepared solely for illustrative purposes to assist investors in understanding certain anticipated effects of the proposed transaction and is based on assumptions and estimates that Butterfield believes are reasonable. The combined financial information does not purport to reflect what Butterfield’s financial position or results of operations would have been had the proposed transaction occurred on the dates assumed, nor is it necessarily indicative of Butterfield’s future financial position or results of operations following completion of the proposed transaction. The combined forecast financial information, including tangible common equity and run rate earnings, reflects management’s current expectations and assumptions regarding the proposed transaction and its anticipated benefits. Such forecasts are inherently uncertain and actual results may differ materially from those reflected in the forecast financial information. The combined financial information included in this presentation does not purport to comply with Article 11 of Regulation S-X and should not be viewed as a substitute for pro forma financial information prepared in accordance with Article 11 of Regulation S-X. 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, 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. Important Notice and Disclaimer

 

4 Agenda and Overview Ten International Locations Butterfield Overview Michael Collins Chairman and Chief Executive Officer Michael Schrum President and Group Chief Financial Officer Bri Hidalgo Group Chief Risk Officer • 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 • Second Quarter 2026 Financials • CIBC Caribbean Update • 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

 

5 Financials

 

6 Second Quarter 2026 Highlights Net Income (In US$ millions) Return on Equity (In US$ millions) vs. Q1 2026 vs. Q2 2025 Q2 2026 $ % $ % Net Interest Income $ 95.6 $ 2.3 $ 6.2 Non-Interest Income 63.4 0.7 6.3 Provision for Credit Losses (1.6) (0.2) (1.4) Non-Interest Expenses* (111.4) (19.6) (18.5) Other Gains (Losses) 1.0 1.0 0.9 Net Income $ 46.9 $ (15.7) (25.1) % $ (6.4) (12.0) % Non-Core Items** 16.9 16.4 16.6 Core Net Income** $ 63.9 $ 0.7 1.1 % $ 10.2 18.9 % • Net income of $46.9 million, or $1.16 per share • Core net income** of $63.9 million, or $1.58 per share • Return on average common equity of 16.6%; core return on average tangible common equity** of 25.0% • Net interest margin of 2.74%, cost of deposits of 1.25% • Quarterly cash dividend of $0.50 per common share • Repurchases of 0.3 million shares at a total cost of $16.1 million • Closed acquisition of R&H Guernsey with integration activities underway • Entered into an agreement to acquire CIBC Caribbean with expected close in the first half of 2027 * Includes income taxes ** See the Appendix for a reconciliation of non-GAAP measures $53.3 $61.1 $63.8 $62.6 $46.9 $53.7 $63.3 $63.8 $63.2 $63.9 Net income Core Net Income** Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 20.3% 22.5% 22.7% 22.1% 16.6% 22.3% 25.5% 24.6% 24.1% 25.0% Return on Equity Core Return on Average Tangible Common Equity** Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026

 

7 Net Interest Income before Provision for Credit Losses - Trend (In US$ millions) $89.4 $93.3 $95.6 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net Interest Margin & Yields Income Statement Net Interest Income • Net interest income (“NII”) and net interest margin (“NIM”) remained broadly stable with the prior quarter, with increases in NII driven by a higher day count and growth in interest-earning asset volumes, partially offset by higher deposit costs associated with increased funding volumes • Average investment volumes were relatively flat compared to the prior quarter • Average loan volumes were slightly higher compared to the prior quarter (In US$ millions) Q2 2026 vs. Q1 2026 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $ 3,856.6 3.32 % $ 210.5 (0.03) % Investments 5,716.1 2.78 % 2.1 — % Loans (net) 4,413.2 5.90 % 13.4 0.06 % Interest Earning Assets 13,985.9 3.92 % 226.0 0.01 % Interest Bearing Liabilities 10,475.8 (1.57) % 325.2 — % Net Interest Margin 2.74 % (0.01) %

 

8 Non-Interest Income Trend (In US$ millions)(In US$ millions) Q2 2026 vs. Q1 2026 Asset management $ 10.3 $ (0.1) Banking 15.9 (0.4) Foreign exchange revenue 13.3 (1.3) Trust 19.2 2.5 Custody and other 3.7 — Other 0.9 (0.1) Total Non-Interest Income $ 63.4 $ 0.7 $57.0 $62.6 $63.4 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 • Total non-interest income increased by $0.7 million versus the prior quarter, primarily due to: ◦ increased trust revenue from R&H onboarding during the quarter; ◦ partially offset by lower foreign exchange revenue driven by volume; and ◦ lower banking fees • The fee income ratio was 40.3% in the second quarter of 2026, which compares favorably to historical peer* averages Income Statement Non-Interest Income * Compiled from publicly available disclosure of US banks identified by management as a peer group. Please see the Appendix for a list of these banks.

 

9 Core Non-Interest Expenses* Trend (In US$ millions) Core Non-Interest Expenses* vs. Q1 2026 (In US$ millions) Q2 2026 $ % Salaries & Benefits** $ 48.3 $ 2.2 4.7 % Technology & Comm. 16.2 0.8 5.2 % Professional & O/S Services 5.2 0.2 4.6 % Property 8.0 0.3 4.4 % Indirect Taxes 5.4 (1.5) (22.1) % Marketing 2.0 0.2 13.3 % Intangible Amortization 2.4 0.4 19.5 % Other 5.4 0.3 6.2 % Total Core Non-Interest Expenses* $ 92.9 $ 3.0 3.3 % Non-Core Expenses* 16.9 16.4 >100% Non-Interest Expenses $ 109.8 $ 19.3 21.4 % $91.4 $89.9 $92.9 61.1% 56.4% 57.0% Core Efficiency Ratio* Core Non-Interest Expenses* Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 • Excluding acquisition-related non-core costs, core expenses increased 3.3% sequentially, including approximately $1.9 million related to the newly acquired R&H Guernsey business. • Core non-interest expenses* increased compared to the prior quarter with the following underlying movements: ◦ higher salaries and benefits, property expenses and amortization of intangible assets attributable to the newly integrated R&H Guernsey business which closed in April 2026; ◦ higher technology and communications expenses from the R&H Guernsey business as well as increased corporate travel expenses; • Core efficiency ratio* of 57.0% slightly increased 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

 

10 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 increased to $13.1 billion in Q2 2026 compared to $12.6 billion at the prior year end • Butterfield’s balance sheet remained low in risk density (risk weighted assets/total assets) at 27.9% vs Q4 2025 (In US$ millions) Q2 2026 Q4 2025 % Cash and cash equivalents $ 1,441 $ 1,709 (16) % Reverse Repos & S/T Investments 2,291 1,853 24 % Investments 5,666 5,688 — % Loans (net) 4,403 4,382 1 % Other Assets 546 462 18 % Total Assets $ 14,346 $ 14,095 2 % Int. Bearing Deposits $ 10,191 $ 9,997 2 % Non-Int. Bearing Deposits 2,720 2,701 1 % Other Liabilities 287 255 13 % Shareholders’ Equity 1,149 1,142 1 % Total Liab. & Equity $ 14,346 $ 14,095 2 % $14.2 $14.4 $14.3 $5.5 $5.7 $5.7 $4.6 $4.4 $4.4 Total assets Investments Loans Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $12.8 $12.9 $12.9 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total Deposits (In US$ billions)

 

11 Asset Quality Non-Accrual Loans (In US$ millions) $93.3 $90.2 $96.0 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Res Mtg 71.2% Consumer 4.5% Comm’l R/E 12.4% Other Comm’l 6.2% Government 5.7% Loan Distribution 0.00% 0.00% 0.00% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 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 loan-to-value ratios below 70% • Non-accrual loans increased to 2.2% of gross loans, up from 2.0% in the prior quarter, driven by residential real estate facilities in the Channel Islands and UK segment • Allowance for credit losses at $27.8 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%

 

12 Interest Rate Sensitivity Interest Rate SensitivityAverage Balance - Balance Sheet Average Balances (US$Mil) Weighted Average Life Q2 2026 vs. Q1 2026 Duration vs. Q1 2026 Cash & Reverse Repos & S/T Invest. $ 3,856.6 $ 210.5 0.2 — N/A AFS 2,801.3 59.4 2.9 — 3.5 HTM** 2,914.8 (57.3) 6.7 (0.3) 8.1 Total $ 9,572.7 $ 212.6 (4.1)% 3.4% 6.9% (1.6)% 1.5% 2.6% NTB US Peer Median * -100bps +100bps +200bps • Total investment portfolio duration decreased to 4.7 years in line with the fixed portfolio maturing down, partially offset by forward rates rising • Interest rate sensitivity has decreased compared with the prior quarter, due to back testing model updates to deposit beta assumptions • Net unrealized losses on AFS securities increased to $106.7 million as at June 30, 2026, compared with net unrealized losses of $99.7 million as at the end of the first quarter of 2026 • Based on implied forward rates, the AFS OCI is expected to further improve by 20% in the next 12 months and 43% in the next 24 months * Compiled from publicly available disclosures of US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q1 2026 comparative data is used as Q2 2026 peer information was not publicly 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.

 

13 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 7.2%, conservatively above the targeted range of 6.0% to 6.5% Regulatory Capital - Total Capital Ratio 27.5% 13.5% 15.4% Butterfield Current BMA Minimum US Peer Median** *** See the Appendix for a reconciliation of non-GAAP measures 8.1% 13.0% 7.2% 12.6% 0.9% 0.5% TCE/TA TCE/TA Ex Cash Butterfield Current US Peer Median** $86.2 $79.9 $77.7 $39.7 $88.6 $155.3 $146.7 $58.6 Combined Payout Ratio Share Repurchases Cash Dividend 2023 2024 2025 Q2 2026 Combined Payout Ratio * * Q2 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. Q1 2026 comparative data is used as Q2 2026 peer information was not publicly available at time of publication. 78% 109% 97% 90%

 

14 CIBC Caribbean Update

 

15 Update on the Acquisition of CIBC Caribbean • The transaction remains on track with key approvals, financing activities and integration planning progressing as expected • Employee, community, government, and stakeholder engagement is ongoing ◦ First set of regulatory licencing applications have been submitted ◦ Employee townhalls have been conducted across several markets • Integration teams have been established and are actively planning integration teams and activities • Preparation for potential debt issuance underway

 

16 May 28, 2026 16 Creating a Leading Independent Banking Platform Step Change in Scale(2) Source: Company disclosure. Note(s): Map not to scale. CIBC Caribbean financial statements are prepared in accordance with IFRS. Information for peer banks, including CIBC Caribbean, is based on those banks’ public disclosures. Note(s): (1) As provided by The Banker. (2) Assuming completion of the transaction. (3) Combined consolidated FY2025 deposits as a % of Category A retail bank deposits as of Oct 31, 2025. (4) Butterfield’s FY2025 Bermuda deposits as a % of FY2025 total deposits of Butterfield Bermuda, HSBC Bermuda, Clarien Bank, and Bermuda Commercial Bank. (5) Current CIBC Caribbean HQ. (6) Business support centers. (7) Representative office. (8) Combined figures calculated as the sum of Butterfield’s and CIBC Caribbean’s period-end balances as at March 31, 2026 and January 31, 2026, respectively, excluding the impact of purchase accounting; not prepared in accordance with Article 11 of Regulation S-X. Refer to “Important Notice and Disclaimer-Presentation of Financial Information” for further details. (9) Based on Butterfield’s expectations of what combined earnings will be for the year ended December 31, 2028, assuming fully phased-in synergies and excluding integration costs and the impact of purchase accounting. This is a non-GAAP combined forecast financial measure. Refer to “Important Notice and Disclaimer-About Non-GAAP Financial Measures” and “Important Notice and Disclaimer-Presentation of Financial Information” for further details. (10) Forecast as at the anticipated transaction close date of March 31, 2027. This is a non-GAAP combined forecast financial measure. Refer to “Important Notice and Disclaimer-About Non-GAAP Financial Measures” and “Important Notice and Disclaimer-Presentation of Financial Information” for further details. (11) Includes select independent banks and regional subsidiaries of global banks operating in the English-speaking Atlantic and Caribbean. Leading Bank in Attractive Markets Select Atlantic and Caribbean Banks by Total Assets (US$bn)(11) $29bn Total Assets(8) $25bn Total Deposits(8) Leading Bank in International Financial Centers and Attractive Caribbean Markets #1 Bermuda Bank(1) #1 Cayman Islands Bank(1) 50%+ Deposit Market Share(2,3) 30% Deposit Market Share(4) $1.7bn TCE(10) $400mm+ Run Rate Earnings(9) P ro F o rm a + R ep u bl ic F in an ci al N C B Ja m ai ca Sc ot ia ba n k C ar ib be an H SB C B er m u d a R B C C ar ib be an F ir st C it iz en s (T ri n id ad ) The Bahamas Turks and Caicos Cayman Islands Jamaica British Virgin Islands St. Kitts Antigua St. Lucia Barbados Trinidad and Tobago Bermuda Legend CIBC Caribbean Existing Footprint Butterfield Existing Footprint Butterfield Current and Pro Forma Group HQ Pro Forma Regional HQ(5) Other International Canada⁽6⁾ Guernsey Jersey Mauritius⁽6⁾ Singapore Switzerland UK C a ri b b e a nHong Kong (7) (8)

 

17 Appendix

 

18 Group (US$ Billions) Bermuda (US$ Billions) Deposit Composition by Segment Cayman (US$ Billions) Channel Islands (US$ Billions) 20% 21% 21% 49% 50% 49% 31% 30% 30% $12.8 $12.9 $12.9 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 36% 33% 36% 44% 45% 43% 20% 22% 21% $4.5 $4.6 $4.8 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 24% 27% 26% 50% 50% 50% 26% 23% 24% $4.0 $4.0 $3.8 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1% 1% 1% 52% 55% 54% 48% 44% 45% $4.3 $4.2 $4.3 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026

 

19 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% 29% 28% 27% 26% 23% 22% 21% 19% 20% 49% 49% 50% 54% 54% $3.6 $3.1 $3.2 Bermuda Cayman UK and Channel Islands Total Residential 2022 2023 2024 2025 Q2 2026 37% 37% 34% 33% 32% 24% 25% 24% 24% 24% 39% 38% 42% 43% 44% $5.1 $4.4 $4.4 Bermuda Cayman UK and Channel Islands Total Loans 2022 2023 2024 2025 Q2 2026 43% 51% 47% 45% 43% 57% 49% 53% 55% 57% $5.1 $4.4 $4.4 Fixed Floating Total Loans 2022 2023 2024 2025 Q2 2026 24% 21% 23% 18% 19% 9% 9% 10% 6% 6% 21% 22% 22% 25% 24% 46% 48% 46% 51% 51% $1.4 $1.1 $1.1 Commercial and Industrial Commercial Overdrafts Government Commercial Real Estate Total Commercial Loans 2022 2023 2024 2025 Q2 2026

 

20 Balance Sheet Movements Deposit Composition by Currency (US$ billions)Deposit Movements (US$ millions) $+30 $+210 Change vs Q1 2026 Change vs Q4 2025 Loan Movements (US$ millions) Loan Composition by Currency (US$ billions) +35 -5 $+10 $+20 Change vs Q1 2026 Change vs Q4 2025 Volume FX Translation 70% 72% 71% 24% 22% 22% 6% 6% 6% $12.8 $12.9 $12.9 USD / USD Pegged GBP Other Total deposits Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 57% 57% 57% 43% 43% 42% —% —% 1% $4.6 $4.4 $4.4 USD / USD Pegged GBP Other Total loans Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 +5 +5 +275 -65 +50 -30

 

21 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Assets Cash and cash equivalents $ 1,441 $ 1,942 $ 1,709 $ 1,501 $ 1,450 $ 2,097 $ 1,998 $ 2,067 $ 2,390 Reverse Repos & S/T Investments 2,291 1,930 1,853 1,987 2,247 1,498 1,785 1,750 1,289 Investments 5,666 5,676 5,688 5,675 5,458 5,448 5,513 5,468 5,168 Loans, Net 4,403 4,394 4,382 4,468 4,578 4,518 4,474 4,648 4,585 Other Assets 546 483 462 456 453 458 462 441 506 Total Assets $ 14,346 $ 14,425 $ 14,095 $ 14,086 $ 14,185 $ 14,020 $ 14,231 $ 14,373 $ 13,939 Liabilities and Equity Total Deposits $ 12,911 $ 12,882 $ 12,698 $ 12,721 $ 12,838 $ 12,608 $ 12,746 $ 12,738 $ 12,548 Long-Term Debt — — — — — 99 99 99 99 Other Liabilities 287 407 255 259 278 256 366 472 293 Total Liabilities $ 13,198 $ 13,289 $ 12,953 $ 12,980 $ 13,116 $ 12,962 $ 13,211 $ 13,309 $ 12,940 Common Equity $ 1,149 $ 1,136 $ 1,142 $ 1,106 $ 1,069 $ 1,058 $ 1,021 $ 1,064 $ 999 Total Equity $ 1,149 $ 1,136 $ 1,142 $ 1,106 $ 1,069 $ 1,058 $ 1,021 $ 1,064 $ 999 Total Liabilities and Equity $ 14,346 $ 14,425 $ 14,095 $ 14,086 $ 14,185 $ 14,020 $ 14,231 $ 14,373 $ 13,939 Key Metrics Common equity tier 1 capital ratio 27.4 % 26.8 % 27.6 % 26.9 % 26.0 % 25.2 % 23.5 % 22.1 % 22.5 % Tier 1 capital ratio 27.4 % 26.8 % 27.6 % 26.9 % 26.0 % 25.2 % 23.5 % 22.1 % 22.5 % Total capital ratio 27.5 % 26.9 % 27.8 % 27.0 % 26.2 % 27.7 % 25.8 % 24.3 % 24.8 % Leverage ratio 7.4 % 7.5 % 7.6 % 7.5 % 7.3 % 7.4 % 7.3 % 7.1 % 7.3 % Risk-weighted assets (in $ millions) 3,996 4,139 3,991 4,014 4,063 4,207 4,539 4,776 4,668 Risk-weighted assets / total assets 27.9 % 28.7 % 28.3 % 28.5 % 28.6 % 30.0 % 31.9 % 33.2 % 33.5 % Tangible common equity ratio 7.2 % 7.3 % 7.5 % 7.3 % 6.9 % 6.9 % 6.6 % 6.8 % 6.5 % Book value per common share (in $) 29.21 28.68 28.58 27.25 26.01 25.07 23.78 24.09 22.12 Tangible book value per share (in $) 26.19 26.56 26.41 25.06 23.77 22.94 21.70 21.90 20.03 Non-accrual loans/gross loans 2.2 % 2.0 % 2.1 % 2.0 % 2.0 % 2.3 % 1.7 % 1.9 % 1.5 % Non-performing assets/total assets 1.0 % 1.2 % 0.8 % 1.0 % 0.8 % 1.1 % 1.1 % 1.5 % 1.1 % Allowance for credit losses/total loans 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 0.6 % 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.

 

22 (in millions of US Dollars, unless otherwise indicated) Q2 2026 Q1 2026 Q2 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 $ 3,856.6 $ 32.0 3.32 % $ 3,646.1 $ 30.1 3.35 % $ 3,634.3 $ 33.6 3.71 % Investment in securities 5,716.1 39.7 2.78 % 5,714.1 39.2 2.78 % 5,452.0 36.2 2.67 % AFS 2,801.3 23.3 3.33 % 2,742.0 22.3 3.31 % 2,292.6 18.3 3.21 % HTM 2,914.8 16.4 2.26 % 2,972.1 16.8 2.30 % 3,159.4 17.9 2.27 % Loans 4,413.2 65.0 5.90 % 4,399.8 63.4 5.84 % 4,517.7 71.0 6.31 % Commercial 1,166.3 17.4 5.98 % 1,171.2 16.6 5.75 % 1,290.7 21.1 6.55 % Consumer 3,246.9 47.6 5.88 % 3,228.6 46.8 5.88 % 3,227.0 50.0 6.21 % Total interest earning assets 13,985.9 136.6 3.92 % 13,760.0 132.7 3.91 % 13,603.9 140.9 4.15 % Other assets 525.2 455.9 417.6 Total assets $ 14,511.2 $ 14,215.8 $ 14,021.5 Liabilities Deposits - interest bearing $ 10,450.0 $ (40.7) (1.56) % $ 10,143.9 $ (39.3) (1.57) % $ 10,051.2 $ (49.2) (1.96) % Securities sold under agreement to repurchase 25.7 (0.2) (3.78) % 6.6 (0.1) (3.99) % 1.9 — (5.94) % Long-term debt — — — % — — — % 77.7 (2.3) (11.92) % Interest bearing liabilities 10,475.8 (41.0) (1.57) % 10,150.5 (39.4) (1.57) % 10,130.8 (51.5) (2.04) % Non-interest bearing customer deposits 2,649.6 2,684.5 2,602.5 Other liabilities 245.1 249.5 253.4 Total liabilities $ 13,370.4 $ 13,084.5 $ 12,986.7 Shareholders’ equity 1,140.7 1,131.4 1,034.9 Total liabilities and shareholders’ equity $ 14,511.2 $ 14,215.8 $ 14,021.5 Non-interest bearing funds net of non- interest earning assets (free balance) $ 3,510.2 $ 3,609.5 $ 3,473.2 Net interest margin $ 95.6 2.74 % $ 93.3 2.75 % $ 89.4 2.64 % Average Balance Sheet Trends

 

23 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Net Interest Income $ 95.6 $ 93.3 $ 92.6 $ 92.7 $ 89.4 $ 89.3 $ 88.6 $ 88.1 $ 87.4 Non-Interest Income 63.4 62.6 66.3 61.2 57.0 58.4 63.2 56.0 55.6 Prov. for Credit (Losses) Recovery (1.6) (1.4) 0.2 (0.6) (0.2) 0.4 (0.3) (1.3) (0.5) Non-Interest Expenses* 111.4 91.9 95.3 92.2 93.0 94.4 92.2 90.0 92.1 Other Gains (Losses) 1.0 — — (0.1) 0.1 — 0.1 (0.1) 0.1 Net Income $ 46.9 $ 62.6 $ 63.8 $ 61.1 $ 53.3 $ 53.8 $ 59.6 $ 52.7 $ 50.6 Non-Core Items** $ 16.9 $ 0.6 $ — $ 2.2 $ 0.4 $ 2.9 $ — $ 0.1 $ 0.8 Core Net Income** $ 63.9 $ 63.2 $ 63.8 $ 63.3 $ 53.7 $ 56.7 $ 59.6 $ 52.8 $ 51.4 Key Metrics Loan Yield 5.90 % 5.84 % 6.01 % 6.24 % 6.31 % 6.32 % 6.43 % 6.64 % 6.65 % Securities Yield 2.78 2.78 2.72 2.67 2.67 2.68 2.51 2.39 2.30 Cost of Deposits 1.25 1.24 1.37 1.47 1.56 1.60 1.73 1.91 1.89 Net Interest Margin 2.74 2.75 2.69 2.73 2.64 2.70 2.61 2.61 2.64 Core Efficiency Ratio** 57.0 56.4 57.2 56.2 61.1 59.8 58.2 60.2 61.8 Core ROATCE** 25.0 24.1 24.6 25.5 22.3 24.2 25.2 22.5 23.3 Fee Income Ratio 40.3 40.6 41.7 39.9 39.0 39.4 41.7 39.2 39.0 Fully Diluted Share Count (in millions of common shares) 40.4 40.9 41.4 41.9 42.7 43.6 44.6 45.6 46.3 * Includes income taxes ** See the reconciliation of non-GAAP measures on pages 26-27 Income Statement Trends

 

24 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Non-Interest Income Asset Management $ 10.3 $ 10.4 $ 10.4 $ 9.9 $ 9.4 $ 9.5 $ 9.1 $ 9.5 $ 8.9 Banking 15.9 16.3 19.7 17.8 14.7 15.1 21.2 14.4 13.8 FX Revenue 13.3 14.6 13.7 13.2 12.0 13.7 13.2 12.2 12.6 Trust 19.2 16.7 17.6 16.2 16.4 15.6 15.1 15.8 15.4 Custody & Other Admin. 3.7 3.7 4.0 3.1 3.2 3.5 3.6 3.5 3.4 Other 0.9 1.0 0.8 0.8 1.4 1.0 0.9 0.7 1.6 Total Non-Interest Income $ 63.4 $ 62.6 $ 66.3 $ 61.2 $ 57.0 $ 58.4 $ 63.2 $ 56.0 $ 55.6 Non-Interest Expenses Salaries & Benefits* $ 48.3 $ 46.1 $ 46.7 $ 47.9 $ 46.7 $ 46.9 $ 44.7 $ 44.7 $ 44.8 Technology & Comm. 16.2 15.4 16.7 16.0 16.3 16.0 16.6 16.5 16.9 Professional & O/S Services 21.8 5.5 6.4 5.0 5.2 5.4 5.7 4.8 6.7 Property 8.0 7.7 8.4 8.2 8.8 8.7 8.6 8.6 8.2 Indirect Taxes 5.4 6.9 5.4 5.5 5.8 6.5 5.3 5.5 5.6 Marketing 2.0 1.8 1.9 1.4 1.7 1.8 2.4 1.3 1.6 Intangible Amortization 2.4 2.0 2.2 2.0 2.0 1.9 2.2 1.9 1.9 Other 5.8 5.1 5.4 4.8 5.3 6.0 5.2 5.6 5.5 Total Non-Interest Expense $ 109.8 $ 90.5 $ 93.1 $ 90.8 $ 91.8 $ 93.2 $ 90.6 $ 88.8 $ 91.1 Income Taxes 1.6 1.4 2.2 1.4 1.2 1.2 1.5 1.2 0.9 Total Expense incld. Taxes $ 111.4 $ 91.9 $ 95.3 $ 92.2 $ 93.0 $ 94.4 $ 92.2 $ 90.0 $ 92.1 *Includes non-service employee benefits Non-Interest Income & Expense Trends

 

25 (in millions of US Dollars, unless otherwise indicated) 2026 2025 2024 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Salaries & Benefits* $ 48.3 $ 46.1 $ 46.7 $ 45.8 $ 46.4 $ 44.1 $ 44.7 $ 44.7 $ 44.7 Technology & Comm. 16.2 15.4 16.7 16.0 16.3 16.0 16.6 16.5 16.9 Professional & O/S Services 5.2 5.0 6.4 4.9 5.1 5.4 5.7 4.7 6.1 Property 8.0 7.7 8.4 8.2 8.8 8.7 8.6 8.6 8.2 Indirect Taxes 5.4 6.9 5.4 5.4 5.8 6.3 5.3 5.5 5.5 Marketing 2.0 1.8 1.9 1.4 1.7 1.8 2.4 1.3 1.6 Intangible Amortization 2.4 2.0 2.2 2.0 2.0 1.9 2.2 1.9 1.9 Other 5.4 5.1 5.4 4.8 5.3 6.0 5.2 5.6 5.5 Total Core Non-Interest Expense** $ 92.9 $ 89.9 $ 93.1 $ 88.5 $ 91.4 $ 90.3 $ 90.6 $ 88.6 $ 90.3 Income Taxes 1.6 1.4 2.2 1.4 1.2 1.2 1.5 1.2 0.9 Total Core Expense incld. Taxes** $ 94.5 $ 91.3 $ 95.3 $ 89.9 $ 92.6 $ 91.5 $ 92.1 $ 89.8 $ 91.2 * Includes non-service employee benefits ** See the reconciliation of non-GAAP measures on pages 26-27 Core Non-Interest Expense** Trends

 

26 (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q2 Q1 Q4 Q3 Q2 Net income A $ 46.9 $ 62.6 $ 63.8 $ 61.1 $ 53.3 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 Business acquisition costs 16.9 0.6 — — — Total non-core expenses C $ 16.9 $ 0.6 $ — $ 2.2 $ 0.4 Total non-core (gains), losses and expenses D=B+C 16.9 0.6 — 2.2 0.4 Core net income to common shareholders E=A+D $ 63.9 $ 63.2 $ 63.8 $ 63.3 $ 53.7 Average shareholders' equity 1,135.5 1,148.0 1,117.3 1,076.2 1,055.0 Average common equity F 1,135.5 1,148.0 1,117.3 1,076.2 1,055.0 Less: average goodwill and intangible assets (111.8) (86.0) (87.2) (90.0) (91.2) Average tangible common equity G 1,023.7 1,062.0 1,030.1 986.2 963.8 Return on equity A/F 16.6 % 22.1 % 22.7 % 22.5 % 20.3 % Core return on average tangible common equity E/G 25.0 % 24.1 % 24.6 % 25.5 % 22.3 % Core earnings per common share fully diluted Adjusted weighted average number of diluted common shares (in millions) H 40.4 40.9 41.4 41.9 42.7 Earnings per common share fully diluted A/H 1.16 1.53 1.54 1.46 1.25 Non-core items per share D/H 0.42 0.02 — 0.05 0.01 Core earnings per common share fully diluted E/H 1.58 1.55 1.54 1.51 1.26 Core return on average tangible assets Total average assets I $ 14,454.7 $ 14,272.0 $ 14,173.2 $ 14,016.6 $ 14,111.5 Less: average goodwill and intangible assets (111.8) (86.0) (87.2) (90.0) (91.2) Average tangible assets J $ 14,342.9 $ 14,186.1 $ 14,085.9 $ 13,926.6 $ 14,020.3 Return on average assets A/I 1.3 % 1.8 % 1.8 % 1.7 % 1.5 % Core return on average tangible assets E/J 1.8 % 1.8 % 1.8 % 1.8 % 1.5 % Non-GAAP Reconciliation

 

27 (in millions of US Dollars, unless otherwise indicated) 2026 2025 Q2 Q1 Q4 Q3 Q2 Tangible equity to tangible assets Shareholders' equity K $ 1,148.7 $ 1,136.1 $ 1,141.9 $ 1,106.0 $ 1,069.1 Less: goodwill and intangible assets (118.6) (83.9) (86.8) (88.8) (92.2) Tangible common equity L 1,030.1 1,052.2 1,055.1 1,017.1 977.0 Total assets M 14,346.5 14,424.8 14,094.9 14,086.4 14,185.0 Less: goodwill and intangible assets (118.6) (83.9) (86.8) (88.8) (92.2) Tangible assets N $ 14,227.9 $ 14,340.8 $ 14,008.1 $ 13,997.5 $ 14,092.8 Less: cash and cash equivalents (1,440.5) (1,941.9) (1,708.9) (1,501.4) (1,450.1) Tangible assets, excluding cash O 12,787.4 12,398.9 12,299.2 12,496.1 12,642.7 Tangible common equity to tangible assets L/N 7.2 % 7.3 % 7.5 % 7.3 % 6.9 % Tangible common equity to tangible assets, excluding cash L/O 8.1 % 8.5 % 8.6 % 8.1 % 7.7 % Tangible book value per share Basic participating shares outstanding (in millions) P 39.3 39.6 39.9 40.6 41.1 Tangible book value per common share L/P 26.19 26.56 26.41 25.06 23.77 Efficiency ratio Non-interest expenses $ 109.8 $ 90.5 $ 93.1 $ 90.8 $ 91.8 Less: Amortization of intangibles (2.4) (2.0) (2.2) (2.0) (2.0) Non-interest expenses before amortization of intangibles Q 107.5 88.5 90.9 88.8 89.8 Non-interest income 63.4 62.6 66.3 61.2 57.0 Net interest income before provision for credit losses 95.6 93.3 92.6 92.7 89.4 Net revenue before provision for credit losses and other gains/losses R $ 159.0 $ 155.9 $ 158.9 $ 153.9 $ 146.4 Efficiency ratio Q/R 67.6 % 56.8 % 57.2 % 57.7 % 61.3 % Core efficiency ratio Non-interest expenses $ 109.8 $ 90.5 $ 93.1 $ 90.8 $ 91.8 Less: non-core expenses (C) (16.9) (0.6) — (2.2) (0.4) Less: amortization of intangibles (2.4) (2.0) (2.2) (2.0) (2.0) Core non-interest expenses before amortization of intangibles S 90.5 88.0 90.9 86.6 89.4 Net revenue before provision for credit losses and other gains/losses R 159.0 155.9 158.9 153.9 146.4 Core efficiency ratio S/R 57.0 % 56.4 % 57.2 % 56.2 % 61.1 % Non-GAAP Reconciliation (continued)

 

28 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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