Butterfield Announces New Share Repurchase Program

Rhea-AI Summary

Butterfield (NYSE: NTB) has announced a new $100 million share repurchase program authorized to purchase up to 2.7 million ordinary shares through December 31, 2025. The program will commence on January 1, 2025, replacing the current 2.1 million share repurchase program announced in July 2024.

The Bank's capital management priorities include maintaining quarterly cash dividends, funding organic growth, and positioning for potential acquisitions. Share repurchases will be executed based on market conditions, share price, and alternative capital investment opportunities, through open market or private transactions, including under SEC Rule 10b5-1.

Positive

• Authorization of $100 million share repurchase program
• Capacity to repurchase up to 2.7 million ordinary shares
• Demonstrates strong capital position and commitment to shareholder returns
• Maintains flexibility for organic growth and potential acquisitions

Negative

• None.

Insights

Financial Analyst

The $100 million share repurchase program, authorizing up to 2.7 million shares through 2025, signals strong capital position and management's confidence in the bank's valuation. With a market cap of $1.65 billion, this program represents approximately 6% of outstanding shares. The flexibility in timing and execution methods, including Rule 10b5-1 plans, provides strategic advantages for capital deployment. This program follows their previous 2.1 million share authorization, demonstrating consistent commitment to shareholder returns. The balanced approach to capital management, prioritizing dividends and potential acquisitions alongside buybacks, indicates prudent financial stewardship. This could provide meaningful support for the stock price while maintaining capital adequacy for growth opportunities.

Market Research Analyst

This buyback announcement represents a strategic move in the banking sector where capital return programs are closely watched by investors. The size and timing of the program are particularly noteworthy given current market conditions and banking sector dynamics. The $100 million authorization provides substantial flexibility through 2025, allowing management to opportunistically repurchase shares while maintaining capital for other strategic initiatives. The program's structure, permitting both open market and private transactions, maximizes execution flexibility. The continuation from the previous 2.1 million share program to this expanded 2.7 million share authorization demonstrates management's sustained confidence in the bank's financial position and commitment to shareholder value creation.

HAMILTON, Bermuda--(BUSINESS WIRE)-- The Bank of N.T. Butterfield & Son Limited ("Butterfield" or the "Bank") (BSX: NTB.BH; NYSE: NTB) today announced that its Board of Directors has approved a $100 million ordinary share repurchase program (“the Share Repurchase Program”) pursuant to which the Bank is authorized to purchase up to 2.7 million of its ordinary shares through December 31, 2025.

Michael Collins, Chairman and Chief Executive Officer said: “I am pleased to announce a new share repurchase program for 2025. Our capital management priorities continue to focus on supporting a quarterly cash dividend, funding organic growth, and positioning the Bank for potential acquisitions. Subject to market conditions, our new share repurchase authorization provides us with an additional method to effectively deploy capital in 2025.”

The timing and amount of any share repurchases will be determined by Bank management based on its evaluation of market conditions and other factors that include, but are not limited to, Butterfield’s share price and the availability of alternative capital investments. Repurchases under the new Share Repurchase Program may be made in the open market or through privately negotiated transactions, including under US Securities & Exchange Commission Rule 10b5-1, and will be made in accordance with applicable laws and regulations.

The new Share Repurchase Program will come into effect on January 1, 2025 with the termination of the current 2.1 million share repurchase program that was announced on July 22, 2024.

Forward-Looking Statements:

Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions estimates, intentions, and future performance, including, without limitation, our intention to make share repurchases, our dividend payout target, our fee/income ratio, our OCI burndown, and affordability for borrowing customers and business activity levels, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including worldwide economic conditions (including economic growth and general business conditions) and fluctuations of interest rates, inflation, a decline in Bermuda’s sovereign credit rating, any sudden liquidity crisis, the successful completion and integration of acquisitions (including our integration of the trust assets acquired from Credit Suisse) or the realization of the anticipated benefits of such acquisitions in the expected time-frames or at all, success in business retention (including the retention of relationships associated with our Credit Suisse acquisition) and obtaining new business, potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements.

All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data.

About Butterfield:

Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20241209873218/en/

Investor Relations Contact:

Noah Fields

Investor Relations

The Bank of N.T. Butterfield & Son Limited

Phone : (441) 299 3816

E-mail : noah.fields@butterfieldgroup.com

Media Relations Contact:

Nicky Stevens

Group Strategic Marketing & Communications

The Bank of N.T. Butterfield & Son Limited

Phone: (441) 299 1624

E-mail: nicky.stevens@butterfieldgroup.com

 

Source: Bank of N.T. Butterfield & Son Limited

FAQ

What is the size of Butterfield's (NTB) new share repurchase program?

Butterfield's new share repurchase program is $100 million, authorizing the purchase of up to 2.7 million ordinary shares.

When does Butterfield's (NTB) new share repurchase program start and end?

The new share repurchase program starts on January 1, 2025, and runs through December 31, 2025.

How will Butterfield (NTB) execute its share repurchase program?

Butterfield will execute repurchases through open market or privately negotiated transactions, based on market conditions, share price, and other factors, in accordance with SEC Rule 10b5-1.

What is replacing Butterfield's (NTB) current share repurchase program?

The new 2.7 million share repurchase program will replace the current 2.1 million share program announced in July 2024.