Bank Of Nt Butterfield & Son Q1 Earnings Beat Estimates, Analysts Express Optimism

Piper Sandler's Alexander Twerdahl raised their price target on Bank Of Nt Butterfield & Son (NYSE: NTB) by 11.8% from $34 to $38 on April 25, 2024. The analyst reiterated their Strong Buy rating on the stock. Twerdahl's price target move was made in response to Bank Of Nt Butterfield & Son's Q1 2024 earnings, reported on April 24, 2024.

According to Twerdahl, Bank Of Nt Butterfield & Son is "another unique bank, differentiated from the pack by its strong profitability, low-risk density balance sheet, and attractive capital return." The analyst also pointed out that the quarter's results "reinforced all of these attributes. Post-print, Piper Sandler hiked its EPS estimates on the bank for FY 2024 and FY 2025."

For Q1 2024, Bank Of Nt Butterfield & Son reported an EPS of $1.17, which beat the Zacks Consensus Estimate of $0.96 but missed the previous year's Q1 EPS of $1.24 by 5.6%. The company's revenue for the quarter was $142.2 million, beating the Zacks Consensus Estimate by 3.68% but falling short of Q1 2023's revenue of $147.54 million by 3.6%. The Net Interest Income (NII) for the quarter was $87.1 million, down 10.6% from Q1 2023's $97.4 million.

Bank Of Nt Butterfield & Son's management did not provide financial guidance, which is consistent with banking sector practice. However, Chairman & CEO Michael Collins commented on the bank's Q1 results, stating, "The Bank’s Q1 results were a great start to the year and continue to demonstrate the strong profitability of Butterfield’s capital efficient non-interest earnings, well-structured balance sheet, and thoughtful capital management."

Collins also expressed optimism about the bank's future profitability, saying, "Since listing on the NYSE in 2016, the Bank has consistently maintained operating returns on tangible equity in the range of 16% to 28%, and we expect these levels of profitability to continue across typical economic cycles. We are on track to deliver top quartile returns relative to US regional banks."

Raymond James's David Feaster also issued an update on NTB on April 25, 2024. Feaster raised their price target by 12.5%, from $32 to $36, and reiterated their Buy rating on the stock.

Currently, 100% of the top-rated analysts rate NTB as a Strong Buy or Buy, with no analysts rating it as a Hold, Sell, or Strong Sell.

Since Bank Of Nt Butterfield & Son's latest quarterly report on April 24, 2024, the stock price has increased by 1.4%. Year-over-year, the stock is up 38.5%. During this period, NTB has outperformed the S&P 500, which has seen a 24% increase.

Piper Sandler analyst Alexander Twerdahl, who raised the price target on NTB, is ranked in the top 18% out of 4,565 Wall Street analysts by WallStreetZen. Twerdahl specializes in the Financial Services sector and has an average return of 17.2% with a 75% win rate.

Bank Of Nt Butterfield & Son Limited offers retail, private, and corporate banking services, as well as trust, wealth, and asset management. The company operates in Bermuda, the Cayman Islands, the Channel Islands, and the UK, with additional offices in Guernsey, Jersey, The Bahamas, Switzerland, Singapore, Mauritius, and Canada. Founded in 1858, Bank Of Nt Butterfield & Son is headquartered in Hamilton, Bermuda.

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