Bank of N.T. Butterfield & Son Limited has approved a new $140 million ordinary share repurchase program that will run from January 1, 2026 through December 31, 2026. The authorization allows the bank to buy back up to 3.0 million shares, replacing a prior $70 million program that expired at the end of 2025 and had authorized the purchase of 1.5 million shares announced in July 2025.
Management said the program is part of the bank’s broader capital‑management strategy, designed to provide flexibility for buying shares in the open market or through private transactions. The bank will use the program to complement its quarterly dividend, fund organic growth initiatives, and support potential acquisition financing, all while maintaining a robust capital base.
In its most recent quarterly results, Butterfield reported net income of $61.1 million and earnings per diluted share of $1.46, up from $53.3 million and $1.25 in the prior quarter. The bank’s dividend yield stands at 4.08 %, with a quarterly dividend of $0.50 per share, underscoring its commitment to returning value to shareholders.
Butterfield has a history of share‑repurchase activity, including a $90 million program approved for 2024 and a 1.5 million‑share program announced in July 2025. The new $140 million authorization continues this trend, signaling confidence in the bank’s financial strength and its ability to deploy excess capital efficiently.
Investors have welcomed the announcement, viewing the expanded buyback as a sign of confidence in the bank’s capital allocation decisions. Some analysts have expressed caution about potential interest‑rate cuts, noting that such macro‑environment changes could affect the bank’s cost of capital and overall financial performance.
The approval of the $140 million program reinforces Butterfield’s strategy of balancing shareholder returns with growth and acquisition opportunities. By expanding its buyback capacity, the bank positions itself to respond to market conditions while maintaining a solid capital structure, which should support its long‑term financial stability.
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