Bank Of N.T. Butterfield & Son Underfollowed And Undervalued, Perhaps Capped On Growth

Stephen Simpson profile picture
Stephen Simpson


  • Bank of N.T. Butterfield & Son posted healthy spread income growth and modestly beat expectations in the third quarter, with better opex leverage driving the upside.
  • NTB's balance sheet shrinkage was unusual for the quarter compared to other banks, and lending growth prospects may be more limited in the short term.
  • Conservative management cuts both ways, as it limits underwriting risk, but also leads to less upside from lending growth and profitable capital deployment.
  • NTB shares look undervalued, but the shares are under-followed and may fall between the cracks for both growth and value investors.

Aerial view of coastline of Grand Cayman, Cayman Islands

JodiJacobson/iStock via Getty Images

Despite rising rates, healthy results, uncertainty around the U.S. banking sector, Bank of N.T. Butterfield & Son (NYSE:NTB) (“Butterfield”) really hasn’t been able to catch investor attention. Down about 13% over the past year, underperforming U.S. regional banks, Butterfield’s

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (4)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.