Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 October, 2024

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 September 30, 2024.

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: October 22, 2024	THE BANK OF N.T. BUTTERFIELD & SON LIMITED


	By:	/s/ Craig Bridgewater
	Name:	Craig Bridgewater
	Title:	Group Chief Financial Officer


2

EXHIBIT INDEX


Exhibit						Description

99.1						Earnings release - Third quarter 2024 results
99.2						Financial Statements - Third quarter 2024 results
99.3						Earnings call presentation - Third quarter 2024 results


3

Butterfield Reports Third Quarter 2024 Results

Financial highlights for the third quarter of 2024:

•Net income of $52.7 million, or $1.16 per share, and core net income1 of $52.8 million, or $1.16 per share

•Return on average common equity of 20.3% and core return on average tangible common equity1 of 22.5%

•Net interest margin of 2.61%, cost of deposits of 1.91%

•Board declares dividend for the quarter ended September 30, 2024 of $0.44 per share

•Repurchases of 1.0 million common shares at an average price of $37.00 per share

Hamilton, Bermuda - October 22, 2024: 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 September 30, 2024.

Net income for the third quarter of 2024 was $52.7 million, or $1.16 per diluted common share, compared to net income of $50.6 million, or $1.09 per diluted common share, for the previous quarter and $48.7 million, or $0.99 per diluted common share, for the third quarter of 2023. Core net income1 for the third quarter of 2024 was $52.8 million, or $1.16 per diluted common share, compared to $51.4 million, or $1.11 per diluted common share, for the previous quarter and $57.0 million, or $1.16 per diluted common share, for the third quarter of 2023.

The return on average common equity for the third quarter of 2024 was 20.3% compared to 20.7% for the previous quarter and 20.6% for the third quarter of 2023. The core return on average tangible common equity1 for the third quarter of 2024 was 22.5%, compared to 23.3% for the previous quarter and 26.1% for the third quarter of 2023. The efficiency ratio for the third quarter of 2024 was 60.3%, compared to 62.4% for the previous quarter and 64.1% for the third quarter of 2023. The core efficiency ratio1 for the third quarter of 2024 was 60.2% compared with 61.8% in the previous quarter and 58.3% for the third quarter of 2023.

Michael Collins, Chairman and Chief Executive Officer, commented, “Butterfield delivered strong results in the third quarter of 2024 through improved efficiency, stable non-interest income, and focused capital management. We have a high fee/income ratio and will continue to increase the proportion of fee revenue over time through acquisitions, while returning excess capital to our shareholders. Economic conditions in Bermuda, the Cayman Islands, and the Channel Islands remain favorable, with strong demand and contributions from both international business and tourism. As we enter a period of easing financial conditions, we expect to see better affordability for borrowing customers and a general pick-up in business activity."

Net income was up in the third quarter of 2024 versus the prior quarter primarily due to higher net interest income and lower non-interest expense, as well as a modest increase in non-interest income.

Net interest income (“NII”) for the third quarter of 2024 was $88.1 million, or $0.6 million higher compared with NII of $87.4 million in the previous quarter and down $2.1 million from $90.2 million in the third quarter of 2023. NII was

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

higher during the third quarter of 2024 compared to the second quarter of 2024, primarily due to higher average investable asset volume, which was partially offset by higher deposit costs and lower treasury yields. Compared to the third quarter of 2023, the decreased NII in the third quarter of 2024 was due to higher deposit costs, that were slightly offset by higher yielding interest earning assets and a larger balance sheet.

Net interest margin (“NIM”) for the third quarter of 2024 was 2.61%, a decrease of 3 basis points from 2.64% in the previous quarter and down 15 basis points from 2.76% in the third quarter of 2023. NIM in the third quarter of 2024 decreased compared to the prior quarter and third quarter of 2023 due to mix shift to term deposits and lower treasury yields, partially offset by increased yields on investments.

Non-interest income for the third quarter of 2024 was $56.0 million, an increase of $0.4 million from $55.6 million in the previous quarter and $4.0 million higher than $52.0 million in the third quarter of 2023. The increase in the third quarter of 2024 compared to the prior quarter was due to higher card volume, one-off loan prepayment fees, and growth in asset management fees due to higher asset valuations. The increases were partially offset by lower unclaimed balances recognized into income. Non-interest income in the third quarter of 2024 was higher than the third quarter of 2023 primarily due to increases in asset management fees, as well as increased trust income from assets acquired from Credit Suisse.

Non-interest expenses were $88.8 million in the third quarter of 2024, compared to $91.1 million in the previous quarter and $92.5 million in the third quarter of 2023. Core non-interest expenses1 of $88.6 million in the third quarter of 2024 were lower than the $90.3 million incurred in the previous quarter and higher than the $84.3 million incurred in the third quarter of 2023. Core non-interest expenses1 in the third quarter of 2024 were lower compared to the prior quarter due to decreased professional and outside services costs. Compared to the third quarter of 2023, core non-interest expenses1 were higher due to performance-based remuneration accruals and inflationary increases in staff healthcare costs and property cost; and increased expense arising from the recently implemented core banking software.

Period end deposit balances were $12.7 billion, an increase of 6.3% compared to $12.0 billion at December 31, 2023, primarily due to deposit increases in the Channel Islands, as well as a strengthened British pound. Average deposits were $12.4 billion in the quarter ended September 30, 2024, in-line with the prior quarter.

Tangible book value per share improved by $1.87 or 9.3% this quarter to $21.90 per share.

The Bank maintained its balanced capital return policy. The Board again declared a quarterly dividend of $0.44 per common share to be paid on November 19, 2024 to shareholders of record on November 5, 2024. During the third quarter of 2024, Butterfield repurchased 1.0 million common shares under the Bank's existing share repurchase program.

The current total regulatory capital ratio as at September 30, 2024 was 24.3% as calculated under Basel III, compared to 25.4% as at December 31, 2023. Both of these ratios remain conservatively above the minimum Basel III regulatory requirements applicable to the Bank.

ANALYSIS AND DISCUSSION OF THIRD QUARTER RESULTS


Income statement	Three months ended (Unaudited)
(in $ millions)	September 30, 2024		June 30, 2024		September 30, 2023
Non-interest income	56.0		55.6		52.0
Net interest income before provision for credit losses	88.1		87.4		90.2
Total net revenue before provision for credit losses and other gains (losses)	144.1		143.1		142.2
Provision for credit (losses) recoveries	(1.3)		(0.5)		(0.5)
Total other gains (losses)	(0.1)		0.1		—
Total net revenue	142.7		142.7		141.7
Non-interest expenses	(88.8)		(91.1)		(92.5)
Total net income before taxes	54.0		51.5		49.1
Income tax benefit (expense)	(1.2)		(0.9)		(0.4)
Net income	52.7		50.6		48.7

Net earnings per share
Basic	1.18		1.11		1.00
Diluted	1.16		1.09		0.99

Per diluted share impact of other non-core items 1	—		0.02		0.17
Core earnings per share on a fully diluted basis 1	1.16		1.11		1.16

Adjusted weighted average number of participating shares on a fully diluted basis (in thousands of shares)	45,557		46,298		49,140

Key financial ratios
Return on common equity	20.3	%	20.7	%	20.6	%
Core return on average tangible common equity 1	22.5	%	23.3	%	26.1	%
Return on average assets	1.5	%	1.5	%	1.4	%
Net interest margin	2.61	%	2.64	%	2.76	%
Core efficiency ratio 1	60.2	%	61.8	%	58.3	%

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


Balance Sheet	As at
(in $ millions)	September 30, 2024		December 31, 2023
Cash and cash equivalents	2,067		1,647
Securities purchased under agreements to resell	1,143		187
Short-term investments	607		1,038
Investments in securities	5,468		5,292
Loans, net of allowance for credit losses	4,648		4,746
Premises, equipment and computer software, net	152		154
Goodwill and intangibles, net	97		99
Accrued interest and other assets	192		211
Total assets	14,373		13,374

Total deposits	12,738		11,987
Accrued interest and other liabilities	472		285
Long-term debt	99		98
Total liabilities	13,309		12,370

Common shareholders’ equity	1,064		1,004
Total shareholders' equity	1,064		1,004
Total liabilities and shareholders' equity	14,373		13,374

Key Balance Sheet Ratios:	September 30, 2024		December 31, 2023
Common equity tier 1 capital ratio2	22.1	%	23.0	%
Tier 1 capital ratio2	22.1	%	23.0	%
Total capital ratio2	24.3	%	25.4	%
Leverage ratio2	7.1	%	7.6	%
Risk-Weighted Assets (in $ millions)	4,776		4,541
Risk-Weighted Assets / total assets	33.2	%	34.0	%
Tangible common equity ratio	6.8	%	6.8	%
Book value per common share (in $)	24.09		21.39
Tangible book value per share (in $)	21.90		19.29
Non-accrual loans/gross loans	1.9	%	1.3	%
Non-performing assets/total assets	1.5	%	1.0	%
Allowance for credit losses/total loans	0.6	%	0.5	%

(2)In accordance with regulatory capital guidance, the Bank has elected to make use of transitional arrangements which allow the deferral of the January 1, 2020 Current Expected Credit Loss ("CECL") impact of $7.8 million on its regulatory capital over a period of 5 years.

QUARTER ENDED SEPTEMBER 30, 2024 COMPARED WITH THE QUARTER ENDED JUNE 30, 2024

Net Income

Net income for the quarter ended September 30, 2024 was $52.7 million, up from $50.6 million in the prior quarter.

Movements in net income during the quarter ended September 30, 2024 compared to the previous quarter are attributable to the following:

•$0.4 million increase in non-interest income driven by (i) $0.6 million increase in banking fees due to one-off loan prepayment fees and increased card volumes; (ii) $0.6 million increase in asset management fees due to increases in asset valuations; (iii) offset by $0.9 million decrease in other non-interest income due to a decrease in unclaimed customer balances being recognized in revenue, and a $0.4 million decrease in foreign exchange revenue due to seasonality and lower volumes;

•$0.6 million increase in net interest income before provision for credit losses driven by an increased volume of interest earning assets, increased yields on new investment assets and additional day count. This was partially offset by decreased yields on treasury assets as market interest rates declined;

•$0.8 million increase in provision for credit losses driven by a commercial facility in Bermuda;

•$2.4 million decrease in non-interest expenses driven by (i) $1.9 million decrease in professional and outside services fees in the current quarter; and (ii) $0.4 million decrease in technology and communications from reduced depreciation on IT equipment and lower software maintenance costs; and

•$0.3 million increase in income tax expenses due to higher net income in the Channel Islands.

Non-Core Items1

Non-core items resulted in expenses, net of gains, of $0.1 million in the third quarter of 2024. Non-core items for the quarter included legal fees for corporate restructuring work in the Channel Islands.

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 SEPTEMBER 30, 2024 COMPARED WITH DECEMBER 31, 2023

Total Assets

Total assets of the Bank were $14.4 billion at September 30, 2024, an increase of $1.0 billion from December 31, 2023. The Bank maintained a highly liquid position at September 30, 2024, with $9.3 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 64.6% of total assets, compared with 61.0% at December 31, 2023.

Loans Receivable

The loan portfolio totaled $4.6 billion at September 30, 2024, which was $0.1 billion lower than December 31, 2023 balances. The decrease was driven primarily by maturities and prepayments in excess of originations across the residential mortgage portfolios, partially offset by a strengthened British pound.

The allowance for credit losses at September 30, 2024 totaled $25.8 million, which remains flat from $25.8 million at December 31, 2023.

The loan portfolio represented 32.3% of total assets at September 30, 2024 (December 31, 2023: 35.5%), while loans as a percentage of total deposits was 36.5% at September 30, 2024 (December 31, 2023: 39.6%). The decrease in both ratios was attributable principally to a decrease in loan balances at September 30, 2024 compared to December 31, 2023.

As at September 30, 2024, the Bank had gross non-accrual loans of $89.6 million, representing 1.9% of total gross loans, an increase of $28.6 million from $61.0 million, or 1.3% of total loans, at December 31, 2023. The increase in non-accrual loans was driven by a commercial facility secured by real estate in Bermuda and residential mortgages in the Channel Islands and UK segment.

Other real estate owned (“OREO”) decreased by $0.1 million compared to December 31, 2023 driven by the sale of a residential property in Bermuda.

Investment in Securities

The investment portfolio was $5.5 billion at September 30, 2024, which was $0.2 billion lower than the December 31, 2023 balances. The changes were attributable to paydowns and maturities in the portfolio.

The investment portfolio is made up of high-quality assets with 100% invested in A-or-better-rated securities. The investment book yield was 2.39% during the quarter ended September 30, 2024 compared with 2.30% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio decreased to $117.1 million, compared with total net unrealized losses of $163.9 million at December 31, 2023, as a result of declining long-term US dollar interest rates.

Deposits

Average total deposit balances were consistent with the prior quarter at $12.4 billion for the quarter ended September 30, 2024, while period end balances as at September 30, 2024 were $12.7 billion, an increase of $0.7 billion compared to December 31, 2023.

Average Balance Sheet2


	For the three months ended
	September 30, 2024			June 30, 2024			September 30, 2023
(in $ millions)	Average balance ($)	Interest ($)	Average rate (%)	Average balance ($)	Interest ($)	Average rate (%)	Average balance ($)	Interest ($)	Average rate (%)
Assets
Cash and cash equivalents and short-term investments	3,572.7	42.0	4.66	3,468.8	41.4	4.78	2,559.2	28.8	4.47
Investment in securities	5,239.2	31.5	2.39	5,172.6	29.6	2.30	5,494.9	28.5	2.06

Available-for-sale	1,907.3	12.7	2.64	1,797.1	10.8	2.41	1,926.0	8.8	1.81
Held-to-maturity	3,331.9	18.9	2.24	3,375.4	18.8	2.24	3,568.9	19.7	2.19
Loans	4,566.2	76.4	6.64	4,622.7	76.6	6.65	4,897.5	80.4	6.51
Commercial	1,298.9	21.6	6.61	1,342.8	21.7	6.50	1,394.9	23.2	6.60
Consumer	3,267.3	54.8	6.66	3,279.9	54.8	6.71	3,502.6	57.2	6.47
Interest earning assets	13,378.1	150.0	4.45	13,264.1	147.6	4.46	12,951.6	137.7	4.22
Other assets	421.5			430.4			416.7
Total assets	13,799.6			13,694.5			13,368.3
Liabilities
Deposits - interest bearing	9,805.8	(59.7)	(2.41)	9,807.6	(58.7)	(2.40)	9,340.4	(46.1)	(1.96)



Securities sold under agreement to repurchase	81.9	(0.9)	(4.30)	2.9	—	(4.83)	—	—	—
Long-term debt	98.6	(1.4)	(5.52)	98.6	(1.4)	(5.58)	98.4	(1.4)	(5.53)
Interest bearing liabilities	9,986.3	(61.9)	(2.46)	9,909.1	(60.1)	(2.43)	9,438.8	(47.5)	(2.00)
Non-interest bearing current accounts	2,561.9			2,636.8			2,739.3
Other liabilities	249.6			243.8			279.3
Total liabilities	12,797.8			12,789.6			12,457.4
Shareholders’ equity	1,001.9			904.9			910.9
Total liabilities and shareholders’ equity	13,799.6			13,694.5			13,368.3
Non-interest bearing funds net of non-interest earning assets (free balance)	3,391.8			3,355.0			3,512.8
Net interest margin		88.1	2.61		87.4	2.64		90.2	2.76

(2) Averages are based upon a daily averages for the periods indicated.

Assets Under Administration and Assets Under Management

Total assets under administration for the trust and custody businesses were $133.5 billion and $30.2 billion, respectively, at September 30, 2024, while assets under management were $6.0 billion at September 30, 2024. This compares with $132.4 billion, $30.3 billion and $5.5 billion, respectively, at December 31, 2023.

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 believe that expressing earnings and certain other financial measures excluding these non-core items provides 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 Earnings	Three months ended
(in $ millions except per share amounts)	September 30, 2024		June 30, 2024		September 30, 2023
Net income	52.7		50.6		48.7



Non-core items






Non-core expenses
Early retirement program, voluntary separation, redundancies and other non-core compensation costs	—		0.2		8.2



Restructuring charges and related professional service fees	0.1		0.6		—


Total non-core expenses	0.1		0.8		8.2
Total non-core items	0.1		0.8		8.2
Core net income	52.8		51.4		57.0




Average common equity	1,029.2		979.4		940.2
Less: average goodwill and intangible assets	(95.5)		(95.3)		(72.9)
Average tangible common equity	933.7		884.1		867.2
Core earnings per share fully diluted	1.16		1.11		1.16
Return on common equity	20.3	%	20.7	%	20.6	%
Core return on average tangible common equity	22.5	%	23.3	%	26.1	%

Shareholders' equity	1,064.2		999.1		922.9
Less: goodwill and intangible assets	(96.7)		(94.4)		(70.6)
Tangible common equity	967.5		904.7		852.3
Basic participating shares outstanding (in millions)	44.2		45.2		48.1
Tangible book value per common share	21.90		20.03		17.73

Non-interest expenses	88.8		91.1		92.5
Less: non-core expenses	(0.1)		(0.8)		(8.2)
Less: amortization of intangibles	(1.9)		(1.9)		(1.4)
Core non-interest expenses before amortization of intangibles	86.7		88.4		82.9
Core revenue before other gains and losses and provision for credit losses	144.1		143.1		142.2
Core efficiency ratio	60.2	%	61.8	%	58.3	%

Conference Call Information:

Butterfield will host a conference call to discuss the Bank’s results on Wednesday, October 23, 2024 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:

Certain statements in this release involve the use of non-GAAP financial 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 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. BF-All

Presentation of Financial Information:

Certain monetary amounts, percentages and other figures included in this report 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, 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.

Investor Relations Contact: Media Relations Contact:

Noah Fields Nicky Stevens

Investor Relations Group Strategic Marketing & Communications

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: nicky.stevens@butterfieldgroup.com

INDEX TO FINANCIAL STATEMENTS


Unaudited Consolidated Financial Statements			Page
Consolidated Balance Sheets (unaudited) as of September 30, 2024 and December 31, 2023			2
Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023			3
Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023			4
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023			5
Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2024 and 2023			6
Notes to the Consolidated Financial Statements (unaudited)			7

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
	September 30, 2024	December 31, 2023
Assets
Cash and demand deposits with banks - Non-interest bearing	103,843	91,826
Demand deposits with banks - Interest bearing	270,733	151,104
Cash equivalents - Interest bearing	1,692,613	1,403,718
Cash and cash equivalents	2,067,189	1,646,648
Securities purchased under agreements to resell	1,142,798	187,274
Short-term investments	606,748	1,038,037
Investment in securities

Available-for-sale at fair value (including assets pledged that secured parties are permitted to sell or repledge: $98,991 (2023: nil) (amortized cost: $2,283,982 (2023: $1,995,050))	2,166,839	1,831,129
Held-to-maturity (fair value: $2,881,911 (2023: $2,976,709))	3,300,945	3,461,097
Total investment in securities	5,467,784	5,292,226
Loans
Loans	4,673,598	4,771,608
Allowance for credit losses	(25,791)	(25,759)
Loans, net of allowance for credit losses	4,647,807	4,745,849
Premises, equipment and computer software, net	151,755	154,362

Goodwill	25,197	24,107
Other intangible assets, net	71,506	74,800
Equity method investments	6,566	7,063
Other real estate owned, net	75	450

Accrued interest and other assets	185,528	203,204

Total assets	14,372,953	13,374,020

Liabilities
Deposits
Non-interest bearing	2,420,249	2,656,659
Interest bearing	10,317,426	9,330,049
Total deposits	12,737,675	11,986,708
Securities sold under agreement to repurchase	99,033	—
Employee benefit plans	89,513	88,694



Accrued interest and other liabilities	283,912	196,531

Total other liabilities	472,458	285,225
Long-term debt	98,666	98,490
Total liabilities	13,308,799	12,370,423
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: 44,791,884 (2023: 47,529,045)	448	475

Additional paid-in capital	937,813	988,904
Retained earnings	402,370	342,520
Less: treasury common shares, at cost: 619,212 (2023: 619,212)	(22,487)	(18,104)
Accumulated other comprehensive income (loss)	(253,990)	(310,198)
Total shareholders’ equity	1,064,154	1,003,597
Total liabilities and shareholders’ equity	14,372,953	13,374,020

The accompanying notes are an integral part of these consolidated financial statements.

The Bank of N.T. Butterfield & Son Limited

Consolidated Statements of Operations (unaudited)

(In thousands of US dollars, except per share data)


	Three months ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Non-interest income
Asset management	9,454	7,999	27,180	24,165
Banking	14,421	14,066	42,485	40,219
Foreign exchange revenue	12,226	11,358	38,000	33,353
Trust	15,773	14,670	46,254	41,765
Custody and other administration services	3,484	3,318	10,169	9,981



Other non-interest income	679	579	2,689	2,842
Total non-interest income	56,037	51,990	166,777	152,325
Interest income
Interest and fees on loans	76,445	80,373	230,023	237,646
Investments (none of the investment securities are intrinsically tax-exempt)

Available-for-sale	12,688	8,797	33,062	26,463
Held-to-maturity	18,852	19,701	56,997	60,794
Cash and cash equivalents, securities purchased under agreements to resell and short-term investments	41,989	28,823	120,185	81,164
Total interest income	149,974	137,694	440,267	406,067
Interest expense
Deposits	59,662	46,131	172,609	119,316
Long-term debt	1,371	1,371	4,114	6,720
Securities sold under agreement to repurchase	888	—	977	9
Total interest expense	61,921	47,502	177,700	126,045
Net interest income before provision for credit losses	88,053	90,192	262,567	280,022
Provision for credit (losses) recoveries	(1,316)	(531)	(1,390)	(2,729)
Net interest income after provision for credit losses	86,737	89,661	261,177	277,293
Net gains (losses) on equity securities	—	—	—	43
Net realized gains (losses) on available-for-sale investments	—	(3)	—	(14)


Net gains (losses) on other real estate owned	—	9	68	38







Net other gains (losses)	(52)	—	181	4,015
Total other gains (losses)	(52)	6	249	4,082
Total net revenue	142,722	141,657	428,203	433,700
Non-interest expense
Salaries and other employee benefits	43,703	49,929	130,331	133,452
Technology and communications	16,468	15,958	49,453	44,782
Professional and outside services	4,814	4,294	17,014	14,087
Property	8,551	7,744	25,506	22,682
Indirect taxes	5,467	5,392	17,358	16,435
Non-service employee benefits expense	982	1,398	2,947	4,193
Marketing	1,289	1,549	4,174	4,747
Amortization of intangible assets	1,942	1,438	5,762	4,292







Other expenses	5,550	4,828	15,895	15,514
Total non-interest expense	88,766	92,530	268,440	260,184
Net income before income taxes	53,956	49,127	159,763	173,516
Income tax benefit (expense)	(1,240)	(381)	(3,025)	(1,566)






Net income	52,716	48,746	156,738	171,950





Earnings per common share
Basic earnings per share	1.18	1.00	3.44	3.49
Diluted earnings per share	1.16	0.99	3.38	3.46

The accompanying notes are an integral part of these consolidated financial statements.

The Bank of N.T. Butterfield & Son Limited

Consolidated Statements of Comprehensive Income (unaudited)

(In thousands of US dollars)


	Three months ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023

Net income	52,716	48,746	156,738	171,950

Other comprehensive income (loss), net of taxes
Unrealized net gains (losses) on translation of net investment in foreign operations	2,057	(704)	1,945	(348)
Net changes on investments transferred to held-to-maturity	2,007	2,651	6,206	7,282
Unrealized net gains (losses) on available-for-sale investments	59,666	(30,752)	46,827	(16,694)
Employee benefit plans adjustments	(174)	508	1,230	1,125
Other comprehensive income (loss), net of taxes	63,556	(28,297)	56,208	(8,635)

Total comprehensive income (loss)	116,272	20,449	212,946	163,315

The accompanying notes are an integral part of these consolidated financial statements.

The Bank of N.T. Butterfield & Son Limited

Consolidated Statements of Changes in Shareholders' Equity (unaudited)


	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Number of shares	In thousands of US dollars	Number of shares	In thousands of US dollars	Number of shares	In thousands of US dollars	Number of shares	In thousands of US dollars
Common share capital issued and outstanding
Balance at beginning of period	45,782,082	458	49,757,131	498	47,529,045	475	50,277,466	503

Retirement of shares	(993,203)	(10)	(1,075,131)	(10)	(3,228,523)	(32)	(1,943,126)	(19)
Issuance of common shares	3,005	—	7,935	—	491,362	5	355,595	4
Balance at end of period	44,791,884	448	48,689,935	488	44,791,884	448	48,689,935	488












Additional paid-in capital
Balance at beginning of period		953,254		1,024,846		988,904		1,032,632
Share-based compensation		5,185		5,038		15,471		14,524
Share-based settlements		53		22		518		557



Retirement of shares		(20,679)		(24,348)		(67,075)		(42,151)


Issuance of common shares, net of underwriting discounts and commissions		—		—		(5)		(4)

Balance at end of period		937,813		1,005,558		937,813		1,005,558

Retained earnings
Balance at beginning of period		383,500		300,375		342,520		229,732

Net Income for the period		52,716		48,746		156,738		171,950
Common share cash dividends declared and paid, $0.44 and $1.32 per share (2023: $0.44 and $1.32 per share)		(19,718)		(21,426)		(60,348)		(65,250)
Retirement of shares		(14,128)		(6,870)		(36,540)		(15,607)


Balance at end of period		402,370		320,825		402,370		320,825

Treasury common shares
Balance at beginning of period	619,212	(20,552)	619,212	(17,651)	619,212	(18,104)	619,212	(20,600)
Purchase of treasury common shares	993,203	(36,752)	1,075,131	(31,423)	3,228,523	(108,030)	1,943,126	(55,023)



Retirement of shares	(993,203)	34,817	(1,075,131)	31,229	(3,228,523)	103,647	(1,943,126)	57,778
Balance at end of period	619,212	(22,487)	619,212	(17,845)	619,212	(22,487)	619,212	(17,845)

Accumulated other comprehensive income (loss)
Balance at beginning of period		(317,546)		(357,790)		(310,198)		(377,452)
Other comprehensive income (loss), net of taxes		63,556		(28,297)		56,208		(8,635)
Balance at end of period		(253,990)		(386,087)		(253,990)		(386,087)
Total shareholders' equity		1,064,154		922,939		1,064,154		922,939

The accompanying notes are an integral part of these consolidated financial statements.

The Bank of N.T. Butterfield & Son Limited

Consolidated Statements of Cash Flows (unaudited)

(In thousands of US dollars)


	Nine months ended
	September 30, 2024	September 30, 2023
Cash flows from operating activities
Net income	156,738	171,950


Adjustments to reconcile net income to operating cash flows
Depreciation, accretion and amortization	33,952	26,850
Provision for credit losses (recoveries)	1,390	2,729
Share-based payments and settlements	15,989	15,081

Net change in equity securities at fair value	—	236
Net realized (gains) losses on available-for-sale investments	—	14



Net (gains) losses on other real estate owned	(68)	(38)
(Increase) decrease in carrying value of equity method investments	387	209
Dividends received from equity method investments	110	5,216



Net other non-cash movements	—	1,089
Changes in operating assets and liabilities
(Increase) decrease in accrued interest receivable and other assets	21,646	(30,995)
Increase (decrease) in employee benefit plans, accrued interest payable and other liabilities	(1,146)	(6,351)
Cash provided by (used in) operating activities	228,998	185,990

Cash flows from investing activities
Net (increase) decrease in securities purchased under agreements to resell	(955,524)	(94,242)
Short-term investments other than restricted cash: proceeds from maturities and sales	2,007,287	1,595,489
Short-term investments other than restricted cash: purchases	(1,581,580)	(1,394,737)
Available-for-sale investments: proceeds from sale	—	5,586
Available-for-sale investments: proceeds from maturities and pay downs	462,660	240,789
Available-for-sale investments: purchases	(663,513)	(71,859)
Held-to-maturity investments: proceeds from maturities and pay downs	197,357	216,951
Held-to-maturity investments: purchases	(37,712)	—
Net (increase) decrease in loans	187,635	375,529
Additions to premises, equipment and computer software	(12,909)	(21,409)

Proceeds from sale of other real estate owned	530	359

Purchase of intangible assets	(481)	—

Cash provided by (used in) investing activities	(396,250)	852,456

Cash flows from financing activities
Net increase (decrease) in deposits	590,610	(1,180,727)
Net increase (decrease) in securities sold under agreement to repurchase	96,049	—





Repayment of long-term debt	—	(75,000)
Common shares repurchased	(108,030)	(55,023)



Cash dividends paid on common shares	(60,348)	(65,250)


Cash provided by (used in) financing activities	518,281	(1,376,000)
Net effect of exchange rates on cash, cash equivalents and restricted cash	84,232	(1,955)
Net increase (decrease) in cash, cash equivalents and restricted cash	435,261	(339,509)
Cash, cash equivalents and restricted cash: beginning of period	1,672,260	2,116,546
Cash, cash equivalents and restricted cash: end of period	2,107,521	1,777,037

Components of cash, cash equivalents and restricted cash at end of period
Cash and cash equivalents	2,067,189	1,749,778
Restricted cash included in short-term investments on the consolidated balance sheets	40,332	27,259
Total cash, cash equivalents and restricted cash at end of period	2,107,521	1,777,037





Supplemental disclosure of non-cash items
Transfer to (out of) other real estate owned	87	336

Initial recognition of right-of-use assets and operating lease liabilities	1,262	—

The accompanying notes are an integral part of these consolidated financial statements.

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 United Kingdom ("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 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, 2023.

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.

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

•Employee benefit plans

•Share-based compensation

New Accounting Pronouncements

There were no accounting developments issued during the nine months ended September 30, 2024 or accounting standards pending adoption which impacted the Bank.

Note 3: Cash and cash equivalents


	September 30, 2024	December 31, 2023

Non-interest bearing
Cash and demand deposits with banks	103,843	91,826

Interest bearing
Demand deposits with banks	270,733	151,104
Cash equivalents	1,692,613	1,403,718
Sub-total - Interest bearing	1,963,346	1,554,822

Total cash and cash equivalents	2,067,189	1,646,648

Note 4: Short-term investments


	September 30, 2024	December 31, 2023

Unrestricted
Maturing within three months	238,265	639,133
Maturing between three to six months	310,062	321,850
Maturing between six to twelve months	18,089	51,442
Total unrestricted short-term investments	566,416	1,012,425

Affected by drawing restrictions related to minimum reserve and derivative margin requirements

Interest earning demand and term deposits	40,332	25,612
Total restricted short-term investments	40,332	25,612

Total short-term investments	606,748	1,038,037

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.


	September 30, 2024				December 31, 2023
	Amortized cost	Gross unrealized gains	Gross unrealized losses	Fair value	Amortized cost	Gross unrealized gains	Gross unrealized losses	Fair value








Available-for-sale

US government and federal agencies	2,166,163	8,292	(122,952)	2,051,503	1,721,278	1,382	(158,875)	1,563,785
Non-US governments debt securities	100,177	—	(1,186)	98,991	254,532	—	(4,355)	250,177

Asset-backed securities - Student loans	40	—	—	40	40	—	—	40

Residential mortgage-backed securities	17,602	—	(1,297)	16,305	19,200	—	(2,073)	17,127

Total available-for-sale	2,283,982	8,292	(125,435)	2,166,839	1,995,050	1,382	(165,303)	1,831,129

Held-to-maturity¹
US government and federal agencies	3,300,945	822	(419,856)	2,881,911	3,461,097	—	(484,388)	2,976,709
Total held-to-maturity	3,300,945	822	(419,856)	2,881,911	3,461,097	—	(484,388)	2,976,709

¹For the nine months ended September 30, 2024 and September 30, 2023, 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 September 30, 2024, comprising 164 securities representing 73.7% of the AFS portfolios' carrying value (December 31, 2023: 163 and 96.2%), represent credit losses. Total gross unrealized AFS losses were 7.9% of the fair value of the affected securities (December 31, 2023: 9.4%).

The Bank’s HTM debt securities are comprised of US government and federal agencies securities and have a zero credit loss assumption under the CECL model. HTM debt securities that were in an unrealized loss position as of September 30, 2024, were comprised of 219 securities representing 98.9% of the HTM portfolios’ carrying value (December 31, 2023: 219 and 100%). Total gross unrealized HTM losses were 14.8% of the fair value of affected securities (December 31, 2023: 16.3%).

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.

Management believes that all the Non-US governments debt securities do not have any credit losses, given the explicit guarantee provided by the issuing government.

Investments in Asset-backed securities - Student loans are composed primarily of securities collateralized by Federal Family Education Loan Program loans (“FFELP loans”). FFELP loans benefit from a US federal government guarantee of at least 97% of defaulted principal and accrued interest, with additional credit support provided in the form of over-collateralization, subordination and excess spread, which collectively total in excess of 100%. Accordingly, the vast majority of FFELP loan-backed securities are not exposed to traditional consumer credit risk.

Investments in Residential mortgage-backed securities relate to 13 securities (December 31, 2023: 13) which are rated AAA and possess similar significant credit enhancement as described above. 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% - 49.8% and 44.2% - 53.2%, 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.

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 months		12 months or more
September 30, 2024	Fair 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 agencies	237,033	(639)	1,245,182	(122,313)	1,482,215	(122,952)
Non-US governments debt securities	—	—	98,991	(1,186)	98,991	(1,186)

Asset-backed securities - Student loans	—	—	40	—	40	—

Residential mortgage-backed securities	—	—	16,305	(1,297)	16,305	(1,297)
Total available-for-sale securities with unrealized losses	237,033	(639)	1,360,518	(124,796)	1,597,551	(125,435)

Held-to-maturity securities with unrealized losses
US government and federal agencies	—	—	2,843,469	(419,856)	2,843,469	(419,856)


	Less than 12 months		12 months or more
December 31, 2023	Fair 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 agencies	7,855	(137)	1,486,104	(158,738)	1,493,959	(158,875)
Non-US governments debt securities	—	—	250,177	(4,355)	250,177	(4,355)

Asset-backed securities - Student loans	—	—	40	—	40	—

Residential mortgage-backed securities	—	—	17,127	(2,073)	17,127	(2,073)
Total available-for-sale securities with unrealized losses	7,855	(137)	1,753,448	(165,166)	1,761,303	(165,303)

Held-to-maturity securities with unrealized losses
US government and federal agencies	—	—	2,976,709	(484,388)	2,976,709	(484,388)

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
September 30, 2024	Within 3 months	3 to 12 months	1 to 5 years	5 to 10 years	Over 10 years	No specific or single maturity	Carrying amount







Available-for-sale

US government and federal agencies	—	—	961,056	—	—	1,090,447	2,051,503
Non-US governments debt securities	—	98,991	—	—	—	—	98,991

Asset-backed securities - Student loans	—	—	—	—	—	40	40

Residential mortgage-backed securities	—	—	—	—	—	16,305	16,305

Total available-for-sale	—	98,991	961,056	—	—	1,106,792	2,166,839

Held-to-maturity
US government and federal agencies	—	—	—	—	—	3,300,945	3,300,945

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.


	September 30, 2024		December 31, 2023
Pledged investments - secured customer deposit product	Amortized cost	Fair value	Amortized cost	Fair value
Available-for-sale	24,096	22,924	27,459	25,785
Held-to-maturity	91,603	84,802	96,952	88,399

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.

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)

Sale Proceeds and Realized Gains and Losses of AFS Securities


	Nine months ended
	September 30, 2024			September 30, 2023
	Sale proceeds	Gross realized gains	Gross realized (losses)	Sale proceeds	Gross realized gains	Gross realized (losses)
Asset-backed securities - Student loans	—	—	—	5,586	—	(14)

Total	—	—	—	5,586	—	(14)

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.

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 a period of five to ten years, depending on the purpose. 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 September 30, 2024 is 6.39% (December 31, 2023: 6.46%). The interest receivable on total loans as at September 30, 2024 is $15.0 million (December 31, 2023: $23.1 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 Bank also has a Group Provisions and Impairments Committee which is responsible for approving significant provisions 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.

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:


September 30, 2024	Pass	Special mention	Substandard	Non-accrual	Total amortized cost	Allowance for expected credit losses	Total net loans
Commercial loans

Government	281,960	—	—	—	281,960	(576)	281,384
Commercial and industrial	226,526	254	798	18,041	245,619	(10,638)	234,981
Commercial overdrafts	123,841	1,338	—	—	125,179	(87)	125,092
Total commercial loans	632,327	1,592	798	18,041	652,758	(11,301)	641,457

Commercial real estate loans
Commercial mortgage	557,767	1,018	2,367	17,546	578,698	(3,971)	574,727
Construction	14,053	—	—	—	14,053	—	14,053
Total commercial real estate loans	571,820	1,018	2,367	17,546	592,751	(3,971)	588,780

Consumer loans
Automobile financing	18,079	—	7	145	18,231	(38)	18,193
Credit card	86,766	—	313	—	87,079	(1,806)	85,273
Overdrafts	40,129	—	—	32	40,161	(345)	39,816
Other consumer1	51,105	—	838	840	52,783	(944)	51,839
Total consumer loans	196,079	—	1,158	1,017	198,254	(3,133)	195,121

Residential mortgage loans	3,007,392	9,331	160,142	52,970	3,229,835	(7,386)	3,222,449

Total	4,407,618	11,941	164,465	89,574	4,673,598	(25,791)	4,647,807

1 Other consumer loans’ amortized cost includes $11 million of cash and portfolio secured lending and $32 million of lending secured by buildings in construction or other collateral.


December 31, 2023	Pass	Special mention	Substandard	Non-accrual	Total amortized cost	Allowance for expected credit losses	Total net loans
Commercial loans

Government	274,854	—	—	—	274,854	(848)	274,006
Commercial and industrial	258,325	626	853	18,392	278,196	(10,133)	268,063
Commercial overdrafts	116,859	1,689	159	87	118,794	(267)	118,527
Total commercial loans	650,038	2,315	1,012	18,479	671,844	(11,248)	660,596

Commercial real estate loans
Commercial mortgage	590,276	1,484	1,842	3,133	596,735	(1,441)	595,294
Construction	10,981	—	—	—	10,981	—	10,981
Total commercial real estate loans	601,257	1,484	1,842	3,133	607,716	(1,441)	606,275

Consumer loans
Automobile financing	18,823	—	—	139	18,962	(59)	18,903
Credit card	85,242	—	392	—	85,634	(1,744)	83,890
Overdrafts	42,673	—	—	42	42,715	(379)	42,336
Other consumer1	41,901	—	1,682	839	44,422	(914)	43,508
Total consumer loans	188,639	—	2,074	1,020	191,733	(3,096)	188,637

Residential mortgage loans	3,105,085	16,084	140,761	38,385	3,300,315	(9,974)	3,290,341

Total	4,545,019	19,883	145,689	61,017	4,771,608	(25,759)	4,745,849

1 Other consumer loans’ amortized cost includes $8 million of cash and portfolio secured lending and $27 million of lending secured by buildings in construction or other collateral.

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:


September 30, 2024	Pass	Special mention	Substandard	Non-accrual	Total amortized cost
Loans by origination year
2024	338,942	—	271	—	339,213
2023	408,529	—	49	850	409,428
2022	809,863	120	—	29	810,012
2021	452,033	822	—	—	452,855
2020	285,171	472	34,082	7,473	327,198
Prior	1,855,954	9,189	129,751	81,190	2,076,084
Overdrafts and credit cards	257,126	1,338	312	32	258,808
Total amortized cost	4,407,618	11,941	164,465	89,574	4,673,598


December 31, 2023	Pass	Special mention	Substandard	Non-accrual	Total amortized cost
Loans by origination year
2023	446,889	—	—	—	446,889
2022	868,598	141	—	1,024	869,763
2021	522,169	146	—	—	522,315
2020	364,225	457	25,534	12	390,228
2019	526,356	339	272	8,979	535,946
Prior	1,559,264	17,110	119,332	50,872	1,746,578
Overdrafts and credit cards	257,518	1,690	551	130	259,889
Total amortized cost	4,545,019	19,883	145,689	61,017	4,771,608

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.


September 30, 2024	30 - 59 days	60 - 89 days	90 days or more	Total past due loans	Total current	Total amortized cost
Commercial loans

Government	—	—	—	—	281,960	281,960
Commercial and industrial	3,499	800	17,242	21,541	224,078	245,619
Commercial overdrafts	—	—	—	—	125,179	125,179
Total commercial loans	3,499	800	17,242	21,541	631,217	652,758

Commercial real estate loans
Commercial mortgage	293	349	17,546	18,188	560,510	578,698
Construction	—	—	—	—	14,053	14,053
Total commercial real estate loans	293	349	17,546	18,188	574,563	592,751

Consumer loans
Automobile financing	117	22	129	268	17,963	18,231
Credit card	833	429	313	1,575	85,504	87,079
Overdrafts	—	—	32	32	40,129	40,161
Other consumer	33	727	745	1,505	51,278	52,783
Total consumer loans	983	1,178	1,219	3,380	194,874	198,254

Residential mortgage loans	21,152	15,129	161,075	197,356	3,032,479	3,229,835

Total amortized cost	25,927	17,456	197,082	240,465	4,433,133	4,673,598

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, 2023	30 - 59 days	60 - 89 days	90 days or more	Total past due loans	Total current	Total amortized cost
Commercial loans

Government	—	—	—	—	274,854	274,854
Commercial and industrial	—	—	18,392	18,392	259,804	278,196
Commercial overdrafts	—	—	87	87	118,707	118,794
Total commercial loans	—	—	18,479	18,479	653,365	671,844

Commercial real estate loans
Commercial mortgage	—	355	3,133	3,488	593,247	596,735
Construction	—	—	—	—	10,981	10,981
Total commercial real estate loans	—	355	3,133	3,488	604,228	607,716

Consumer loans
Automobile financing	124	42	112	278	18,684	18,962
Credit card	902	255	392	1,549	84,085	85,634
Overdrafts	—	—	42	42	42,673	42,715
Other consumer	—	89	2,296	2,385	42,037	44,422
Total consumer loans	1,026	386	2,842	4,254	187,479	191,733

Residential mortgage loans	23,483	17,559	102,224	143,266	3,157,049	3,300,315

Total amortized cost	24,509	18,300	126,678	169,487	4,602,121	4,771,608

Changes in Allowances For Credit Losses

Allowance for expected credit losses remained flat during the nine months ended September 30, 2024. As disclosed in Note 2 of the December 31, 2023 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.


	Nine months ended September 30, 2024
	Commercial	Commercial real estate	Consumer	Residential mortgage	Total
Balance at the beginning of period	11,248	1,441	3,096	9,974	25,759
Provision increase (decrease)	318	2,849	518	(2,267)	1,418
Recoveries of previous charge-offs	—	—	895	191	1,086
Charge-offs, by origination year
2024	—	—	—	—	—
2023	—	—	(2)	—	(2)
2022	—	—	—	—	—
2021	—	(146)	—	—	(146)
2020	—	(146)	—	—	(146)
Prior	(261)	(27)	(101)	(531)	(920)
Overdrafts and credit cards	(5)	—	(1,278)	—	(1,283)
Other	1	—	5	19	25
Allowances for expected credit losses at end of period	11,301	3,971	3,133	7,386	25,791

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)


	Nine months ended September 30, 2023
	Commercial	Commercial real estate	Consumer	Residential mortgage	Total
Balance at the beginning of period	12,143	884	2,696	9,238	24,961
Provision increase (decrease)	546	574	933	705	2,758
Recoveries of previous charge-offs	70	—	787	574	1,431
Charge-offs, by origination year
2023	—	—	—	—	—
2022	—	—	(29)	—	(29)
2021	—	—	(19)	—	(19)
2020	—	—	(20)	—	(20)
2019	—	—	(2)	—	(2)
Prior	(1,147)	(9)	(122)	(1,162)	(2,440)
Overdrafts and credit cards	(63)	—	(711)	—	(774)
Other	4	(1)	(18)	166	151
Allowances for expected credit losses at end of period	11,553	1,448	3,495	9,521	26,017

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 nine months ended September 30, 2024, no interest was recognized on non-accrual loans. Non-performing loans at September 30, 2024 include PCD loans, which have all been on non-accrual status since their acquisition. No credit deteriorated loans were purchased during the period.


	September 30, 2024				December 31, 2023
	Non-accrual loans with an allowance	Non-accrual loans without an allowance	Past due 90 days or more and accruing	Total non- performing loans	Non-accrual loans with an allowance	Non-accrual loans without an allowance	Past due 90 days or more and accruing	Total non- performing loans
Commercial loans

Commercial and industrial	17,223	818	—	18,041	18,086	306	—	18,392
Commercial overdrafts	—	—	—	—	—	88	—	88
Total commercial loans	17,223	818	—	18,041	18,086	394	—	18,480

Commercial real estate loans
Commercial mortgage	17,428	118	—	17,546	1,958	1,175	—	3,133

Total commercial real estate loans	17,428	118	—	17,546	1,958	1,175	—	3,133

Consumer loans
Automobile financing	100	45	—	145	124	15	—	139
Credit card	—	—	313	313	—	—	392	392
Overdrafts	—	32	—	32	—	42	—	42
Other consumer	536	304	—	840	512	327	1,682	2,521
Total consumer loans	636	381	313	1,330	636	384	2,074	3,094

Residential mortgage loans	19,079	33,891	128,582	181,552	20,059	18,326	70,325	108,710

Total non-performing loans	54,366	35,208	128,895	218,469	40,739	20,279	72,399	133,417

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 made to borrowers experiencing financial difficulty during the nine-months ended September 30, 2024 and September 30, 2023.


	Amortized cost basis					Weighted average financial effects
September 30, 2024	Term extension and interest rate reduction	Term extension	Interest rate reduction	In % of the class of loans		Months of term extension	Interest rate reduction









Commercial mortgage	—	—	642	0.1	%	—	3.0	%







Other consumer	—	59	787	1.6	%	34	4.0	%


Residential mortgage loans	20,868	1,592	5,264	0.9	%	28	1.9	%


	Amortized cost basis					Weighted average financial effects
September 30, 2023	Term extension and interest rate reduction	Term extension	Interest rate reduction	In % of the class of loans		Months of term extension	Interest rate reduction




















Residential mortgage loans	2,012	2,222	5,221	0.3	%	31	3.0	%

Age analysis and subsequent default of modified loans.

As at September 30, 2024, all loans for which a concession was granted during the preceding 12 months are current (September 30, 2023, all loans for which a concession was granted during the preceding 9 months are current), except for the following:

Residential mortgage loans:

–Nil (September 30, 2023: $0.3 million) of residential mortgage loans for which a reduction in interest rate was granted are 30 to 59 days 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.


	September 30, 2024				December 31, 2023
Geographic region	Cash and cash equivalents, resell agreements and short-term investments	Loans	Off-balance sheet	Total credit exposure	Cash and cash equivalents, resell agreements and short-term investments	Loans	Off-balance sheet	Total credit exposure

Belgium	9,927	—	—	9,927	2,815	—	—	2,815
Bermuda	48,458	1,648,283	187,942	1,884,683	39,843	1,772,429	189,190	2,001,462
Canada	964,690	—	—	964,690	1,198,290	—	—	1,198,290
Cayman Islands	38,340	1,092,080	223,566	1,353,986	46,870	1,171,213	197,333	1,415,416

Germany	2,310	—	—	2,310	1,637	—	—	1,637
Guernsey	1	623,922	172,008	795,931	1	630,157	180,179	810,337
Ireland	11,204	—	—	11,204	13,849	—	—	13,849
Japan	167,160	—	—	167,160	15,831	—	—	15,831
Jersey	—	201,521	15,639	217,160	—	181,647	17,514	199,161


Norway	66,970	—	—	66,970	94,698	—	—	94,698

Spain	97,733	—	—	97,733	—	—	—	—
Switzerland	3,149	—	—	3,149	1,952	—	—	1,952
The Bahamas	101	3,957	—	4,058	990	5,625	—	6,615
United Kingdom	1,753,709	1,103,835	126,898	2,984,442	558,724	1,010,537	162,002	1,731,263
United States	649,802	—	—	649,802	894,259	—	—	894,259
Other	3,181	—	—	3,181	2,200	—	—	2,200
Total gross exposure	3,816,735	4,673,598	726,053	9,216,386	2,871,959	4,771,608	746,218	8,389,785

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 8: Deposits


By Maturity
	Demand		Total demand deposits	Term				Total term deposits
September 30, 2024	Non-interest bearing	Interest bearing		Within 3 months	3 to 6 months	6 to 12 months	After 12 months		Total deposits
Demand or less than $100k¹	2,420,249	5,973,297	8,393,546	48,371	19,783	20,078	10,509	98,741	8,492,287
Term - $100k or more	N/A	N/A	—	3,090,381	690,565	393,297	71,145	4,245,388	4,245,388
Total deposits	2,420,249	5,973,297	8,393,546	3,138,752	710,348	413,375	81,654	4,344,129	12,737,675


	Demand		Total demand deposits	Term				Total term deposits
December 31, 2023	Non-interest bearing	Interest bearing		Within 3 months	3 to 6 months	6 to 12 months	After 12 months		Total deposits
Demand or less than $100k¹	2,656,659	5,602,255	8,258,914	42,571	15,177	18,877	10,360	86,985	8,345,899
Term - $100k or more	N/A	N/A	—	2,633,800	474,034	459,325	73,650	3,640,809	3,640,809
Total deposits	2,656,659	5,602,255	8,258,914	2,676,371	489,211	478,202	84,010	3,727,794	11,986,708

¹The weighted-average interest rate on interest-bearing demand deposits as at September 30, 2024 is 0.82% (December 31, 2023: 0.81%).


By Type and Segment	September 30, 2024			December 31, 2023
	Payable on demand	Payable on a fixed date	Total	Payable on demand	Payable on a fixed date	Total
Bermuda	3,683,965	890,231	4,574,196	3,487,911	985,180	4,473,091
Cayman	2,543,790	1,242,465	3,786,255	2,971,581	1,033,515	4,005,096
Channel Islands and the UK	2,165,791	2,211,433	4,377,224	1,799,422	1,709,099	3,508,521
Total deposits	8,393,546	4,344,129	12,737,675	8,258,914	3,727,794	11,986,708

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 2024 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, 2023. During the nine months ended September 30, 2024, there have been no material revisions to these estimates.


		Three months ended		Nine months ended
	Line item in the consolidated statements of operations	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Defined benefit pension expense (income)

Interest cost	Non-service employee benefits expense	1,297	1,346	3,853	4,024
Expected return on plan assets	Non-service employee benefits expense	(1,576)	(1,534)	(4,683)	(4,586)
Amortization of net actuarial (gains) losses	Non-service employee benefits expense	591	571	1,769	1,713
Amortization of prior service (credit) cost	Non-service employee benefits expense	21	20	60	59

Total defined benefit pension expense (income)		333	403	999	1,210

Post-retirement medical benefit expense (income)
Service cost	Salaries and other employee benefits	14	19	41	57
Interest cost	Non-service employee benefits expense	1,096	1,197	3,289	3,590
Amortization of net actuarial (gains) losses	Non-service employee benefits expense	131	131	393	393
Amortization of prior service (credit) cost	Non-service employee benefits expense	(578)	(333)	(1,734)	(1,000)
Total post-retirement medical benefit expense (income)		663	1,014	1,989	3,040

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 components of defined benefit pension expense (income) and post-retirement benefit expense (income) other than the service cost component are included in the line item non-service employee benefits expense in the consolidated statements of income.

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 September 30, 2024, $141.1 million (December 31, 2023: $120.0 million) of standby letters of credit were issued under this facility.


Outstanding unfunded commitments to extend credit	September 30, 2024	December 31, 2023
Commitments to extend credit	484,864	496,577
Documentary and commercial letters of credit	1,277	1,824
Total unfunded commitments to extend credit	486,141	498,401
Allowance for credit losses	(275)	(302)

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.


	September 30, 2024			December 31, 2023
Outstanding financial guarantees	Gross	Collateral	Net	Gross	Collateral	Net
Standby letters of credit	236,746	209,473	27,273	244,288	237,139	7,149
Letters of guarantee	3,166	3,130	36	3,529	3,493	36
Total	239,912	212,603	27,309	247,817	240,632	7,185

Repurchase agreements

The Bank utilizes repurchase agreements and resell agreements (reverse repurchase agreements) to manage liquidity that 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 September 30, 2024, the Bank had 12 open positions (December 31, 2023: 5) in resell agreements with a remaining maturity of less than 120 days involving pools of mortgages issued by US federal agencies and Non-US government debt securities. As at September 30, 2024, the carrying value of these resell agreements is $1.1 billion (December 31, 2023: $187.3 million) and is included in securities purchased under agreements to resell on the consolidated balance sheets. As at September 30, 2024, there were no positions (December 31, 2023: no positions) which were offset on the consolidated balance sheets to arrive at the carrying value, and there was no collateral amount which was available to offset against the future settlement amount.

As at September 30, 2024, the Bank had one open position (December 31, 2023: nil) in a repurchase agreement with a remaining maturity of less than 30 days involving one Non-US government debt securities, with the carrying value of the repurchase agreement being $99.0 million (December 31, 2023: nil).

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, except as noted in the following paragraph.

As publicly announced, in November 2013, the US Attorney’s Office for the Southern District of New York applied for and secured the issuance of so-called John Doe Summonses to six US financial institutions with which the Bank had correspondent bank relationships in connection with a US cross border tax investigation. On August 3, 2021, the Bank announced it had reached a resolution with the United States Department of Justice concerning this inquiry. The resolution is in the form of a non-prosecution agreement with a three-year term which concluded in July 2024. The Bank paid $5.6 million in respect of Forfeiture and Tax Restitution Amounts which is consistent with that previously provisioned for.

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 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 2038. Certain lease payments will be adjusted during the related lease's term based on movements in the relevant consumer price index.


	Three months ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024		September 30, 2023
Lease costs
Operating lease costs	1,927	1,920	4,700		5,717

Short-term lease costs	341	641	2,181		1,863
Sublease income	(8)	(284)	(580)		(842)
Total net lease cost	2,260	2,277	6,301		6,738
Operating lease income	333	248	1,027		760


Other information for the period
Right-of-use assets related to new operating lease liabilities	—	—	1,262		—
Operating cash flows from operating leases	1,619	1,931	5,467		5,834

Other information at end of period			September 30, 2024		December 31, 2023
Operating leases right-of-use assets (included in other assets on the balance sheets)			33,879		33,445
Operating lease liabilities (included in other liabilities on the balance sheets)			33,631		33,014
Weighted average remaining lease term for operating leases (in years)			9.03		9.52
Weighted average discount rate for operating leases			5.68	%	5.60	%

The following table summarizes the maturity analysis of the Bank's commitments for long-term leases as at December 31, 2023:
Year ending December 31					Operating Leases
2024					7,162
2025					4,961
2026					4,128
2027					3,719
2028					3,725
2029 & thereafter					18,382
Total commitments					42,077
Less: effect of discounting cash flows to their present value					(9,063)
Operating lease liabilities					33,014

Note 12: Segmented information

The Bank is managed by the Chairman & Chief Executive Officer ("CEO") 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. Each reportable segment has a managing director who 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. 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, 2023. 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.

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 ("ATMs") 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 Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)

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 and trusts, and to financial intermediaries and funds including deposit services, mortgage lending, private and corporate banking, treasury services, internet banking, wealth management and fiduciary services. In 2023, the segment began issuing credit cards to local residents of Guernsey and Jersey. 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 Segment	September 30, 2024	December 31, 2023
Bermuda	5,307,919	5,181,431
Cayman	4,150,240	4,341,739
Channel Islands and the UK	5,076,950	4,204,561
Other	69,904	63,470
Total assets before inter-segment eliminations	14,605,013	13,791,201
Less: inter-segment eliminations	(232,060)	(417,181)
Total	14,372,953	13,374,020


	Net interest income		Provision for credit (losses) recoveries	Non-interest income	Net revenue before gains and losses	Gains and losses	Total net revenue	Total expenses	Net income
Three months ended September 30, 2024	Customer	Inter- segment
Bermuda	42,300	684	(1,256)	23,145	64,873	1	64,874	48,765	16,109
Cayman	27,107	1,165	(69)	16,581	44,784	—	44,784	17,013	27,771
Channel Islands and the UK	18,583	(1,849)	9	11,345	28,088	(53)	28,035	20,352	7,683
Other	63	—	—	10,756	10,819	—	10,819	9,666	1,153
Total before eliminations	88,053	—	(1,316)	61,827	148,564	(52)	148,512	95,796	52,716
Inter-segment eliminations	—	—	—	(5,790)	(5,790)	—	(5,790)	(5,790)	—
Total	88,053	—	(1,316)	56,037	142,774	(52)	142,722	90,006	52,716

	Net interest income		Provision for credit (losses) recoveries	Non-interest income	Net revenue before gains and losses	Gains and losses	Total net revenue	Total expenses	Net income
Three months ended September 30, 2023	Customer	Inter- segment
Bermuda	46,171	(1,210)	(572)	21,665	66,054	10	66,064	50,093	15,971
Cayman	30,901	1,784	(93)	15,426	48,018	(3)	48,015	17,439	30,576
Channel Islands and the UK	13,109	(574)	134	10,433	23,102	—	23,102	21,654	1,448
Other	11	—	—	9,323	9,334	(1)	9,333	8,582	751
Total before eliminations	90,192	—	(531)	56,847	146,508	6	146,514	97,768	48,746
Inter-segment eliminations	—	—	—	(4,857)	(4,857)	—	(4,857)	(4,857)	—
Total	90,192	—	(531)	51,990	141,651	6	141,657	92,911	48,746

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 interest income		Provision for credit (losses) recoveries	Non-interest income	Net revenue before gains and losses	Gains and losses	Total net revenue	Total expenses	Net income
Nine months ended September 30, 2024	Customer	Inter- segment
Bermuda	126,135	888	(1,487)	67,877	193,413	105	193,518	148,314	45,204
Cayman	85,606	4,194	136	50,454	140,390	—	140,390	50,317	90,073
Channel Islands and the UK	50,641	(5,082)	(39)	33,440	78,960	144	79,104	60,698	18,406
Other	185	—	—	31,638	31,823	—	31,823	28,768	3,055
Total before eliminations	262,567	—	(1,390)	183,409	444,586	249	444,835	288,097	156,738
Inter-segment eliminations	—	—	—	(16,632)	(16,632)	—	(16,632)	(16,632)	—
Total	262,567	—	(1,390)	166,777	427,954	249	428,203	271,465	156,738

	Net interest income		Provision for credit (losses) recoveries	Non-interest income	Net revenue before gains and losses	Gains and losses	Total net revenue	Total expenses	Net income
Nine months ended September 30, 2023	Customer	Inter- segment
Bermuda	140,018	(3,091)	(3,074)	64,904	198,757	4,089	202,846	144,278	58,568
Cayman	98,763	4,595	113	47,721	151,192	(4)	151,188	48,347	102,841
Channel Islands and the UK	41,209	(1,504)	232	28,427	68,364	(2)	68,362	59,646	8,716
Other	32	—	—	25,534	25,566	(1)	25,565	23,740	1,825
Total before eliminations	280,022	—	(2,729)	166,586	443,879	4,082	447,961	276,011	171,950
Inter-segment eliminations	—	—	—	(14,261)	(14,261)	—	(14,261)	(14,261)	—
Total	280,022	—	(2,729)	152,325	429,618	4,082	433,700	261,750	171,950

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 Association master agreements (“ISDAs”). 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.

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

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)

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 20: 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.


September 30, 2024	Derivative instrument	Number of contracts	Notional amounts	Gross positive fair value	Gross negative fair value	Net fair value
Risk management derivatives
Net investment hedges	Currency swaps	5	127,853	—	(6,501)	(6,501)
Fair value hedges	Currency swaps	3	143,207	5,131	—	5,131
Derivatives not formally designated as hedging instruments	Currency swaps	56	1,787,038	2,331	(23,139)	(20,808)
Subtotal risk management derivatives			2,058,098	7,462	(29,640)	(22,178)

Client services derivatives	Spot and forward foreign exchange	145	231,748	2,116	(1,928)	188


Total derivative instruments			2,289,846	9,578	(31,568)	(21,990)

December 31, 2023	Derivative instrument	Number of contracts	Notional amounts	Gross positive fair value	Gross negative fair value	Net fair value
Risk management derivatives
Net investment hedges	Currency swaps	5	97,194	18	(267)	(249)
Fair value hedges	Currency swaps	3	150,826	5,361	—	5,361
Derivatives not formally designated as hedging instruments	Currency swaps	57	1,368,006	5,350	(22,206)	(16,856)
Subtotal risk management derivatives			1,616,026	10,729	(22,473)	(11,744)

Client services derivatives	Spot and forward foreign exchange	99	220,292	1,761	(1,646)	115


Total derivative instruments			1,836,318	12,490	(24,119)	(11,629)

In addition to the above, as at September 30, 2024 foreign denominated deposits of £225.1 million (December 31, 2023: £240.3 million); CHF0.4 million (December 31, 2023: CHF0.4 million) and SGD2.1 million (December 31, 2023: nil) were designated as a hedge of foreign exchange risk associated with the net investment in foreign operations.

We manage 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.

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)


	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
September 30, 2024				Gross fair value of derivatives	Cash collateral received / paid	Net exposures
Derivative assets
Spot and forward foreign exchange and currency swaps	9,578	(7,572)	2,006	—	(6)	2,000

Derivative liabilities
Spot and forward foreign exchange and currency swaps	31,568	(7,572)	23,996	—	(4,594)	19,402
Net negative fair value			(21,990)

	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, 2023				Gross fair value of derivatives	Cash collateral received / paid	Net exposures
Derivative assets
Spot and forward foreign exchange and currency swaps	12,490	(10,148)	2,342	—	(368)	1,974

Derivative liabilities
Spot and forward foreign exchange and currency swaps	24,119	(10,148)	13,971	—	(8,401)	5,570
Net negative fair value			(11,629)

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 ended		Nine months ended
Derivative instrument	Consolidated statements of operations line item	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023

Spot and forward foreign exchange	Foreign exchange revenue	83	—	72	38
Currency swaps, not designated as hedge	Foreign exchange revenue	(27,642)	20,943	(3,951)	12,508
Currency swaps - fair value hedges	Foreign exchange revenue	5,243	(6,489)	(231)	(5,523)

Total net gains (losses) recognized in net income		(22,316)	14,454	(4,110)	7,023

		Three months ended		Nine months ended
Derivative instrument	Consolidated statements of comprehensive income line item	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Currency swaps - net investment hedge	Unrealized net gains (losses) on translation of net investment in foreign operations	(6,442)	(1,307)	(6,251)	991
Total net gains (losses) recognized in comprehensive income		(6,442)	(1,307)	(6,251)	991

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, 2023.

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 and UK Government Treasury notes.

Financial instruments in Level 2 include government debt securities, mortgage-backed securities, other asset-backed securities, forward foreign exchange contracts and securities sold under agreement to repurchase.

There were no Level 3 investments as at September 30, 2024 and December 31, 2023.

There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the nine months ended September 30, 2024 and the year ended December 31, 2023.

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)


	September 30, 2024			December 31, 2023
	Fair value		Total carrying amount / fair value	Fair value		Total carrying amount / fair value
	Level 1	Level 2			Level 1		Level 2

Items that are recognized at fair value on a recurring basis:









Available-for-sale investments

US government and federal agencies	961,055	1,090,448		2,051,503	715,965	847,820		1,563,785
Non-US governments debt securities	98,991	—		98,991	250,177	—		250,177

Asset-backed securities - Student loans	—	40		40	—	40		40

Residential mortgage-backed securities	—	16,305		16,305	—	17,127		17,127

Total available-for-sale	1,060,046	1,106,793		2,166,839	966,142	864,987		1,831,129

Other assets - Derivatives	—	2,006		2,006	—	2,342		2,342

Financial liabilities
Other liabilities - Derivatives	—	23,996		23,996	—	13,971		13,971


Items Other Than Those Recognized at Fair Value on a Recurring Basis:
		September 30, 2024			December 31, 2023
	Level	Carrying amount	Fair value	Appreciation / (depreciation)	Carrying amount	Fair value	Appreciation / (depreciation)
Financial assets
Cash and cash equivalents	Level 1	2,067,189	2,067,189	—	1,646,648	1,646,648	—
Securities purchased under agreements to resell	Level 2	1,142,798	1,142,798	—	187,274	187,274	—
Short-term investments	Level 1	606,748	606,748	—	1,038,037	1,038,037	—
Investments held-to-maturity	Level 2	3,300,945	2,881,911	(419,034)	3,461,097	2,976,709	(484,388)
Loans, net of allowance for credit losses	Level 2	4,647,807	4,614,881	(32,926)	4,745,849	4,700,532	(45,317)
Other real estate owned¹	Level 2	75	75	—	450	450	—

Financial liabilities
Term deposits	Level 2	4,344,129	4,349,917	(5,788)	3,727,794	3,732,610	(4,816)
Securities sold under agreement to repurchase	Level 2	99,033	99,033	—	—	—	—

Long-term debt	Level 2	98,666	97,790	876	98,490	96,145	2,345

¹The current carrying value of OREO is adjusted to fair value only when there is devaluation below carrying value.

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 15: Interest rate risk

The following tables set out the assets, liabilities and shareholders' equity on the date of the earlier of contractual maturity, expected maturity or repricing date. Use of these tables to derive information about the Bank’s interest rate risk position is limited by the fact that customers may choose to terminate their financial instruments at a date earlier than the contractual maturity or repricing date. Examples of this include fixed-rate mortgages, which are shown at contractual maturity but which may be subject to early prepayment, and certain term deposits, which are shown at contractual maturity but which may be withdrawn before their contractual maturity subject to prepayment penalties. Investments are shown based on remaining contractual maturities. The remaining contractual principal maturities for mortgage-backed securities (primarily US government agencies) do not consider prepayments. Remaining expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature.


September 30, 2024	Earlier of contractual maturity or repricing date
(in $ millions)	Within 3 months	3 to 6 months	6 to 12 months	1 to 5 years	After 5 years	Non-interest bearing funds	Total
Assets
Cash and cash equivalents	1,963	—	—	—	—	104	2,067
Securities purchased under agreement to resell	1,075	67	—	—	—	—	1,142
Short-term investments	277	312	18	—	—	—	607
Investments	2	101	10	1,094	4,261	—	5,468
Loans	2,539	63	206	1,478	297	65	4,648
Other assets	—	—	—	—	—	441	441
Total assets	5,856	543	234	2,572	4,558	610	14,373

Liabilities and shareholders' equity
Shareholders’ equity	—	—	—	—	—	1,064	1,064
Demand deposits	5,974	—	—	—	—	2,420	8,394
Term deposits	3,139	710	413	82	—	—	4,344
Securities sold under agreement to repurchase	99	—	—	—	—	—	99
Other liabilities	—	—	—	—	—	373	373
Long-term debt	—	—	99	—	—	—	99
Total liabilities and shareholders' equity	9,212	710	512	82	—	3,857	14,373



Interest rate sensitivity gap	(3,356)	(167)	(278)	2,490	4,558	(3,247)	—
Cumulative interest rate sensitivity gap	(3,356)	(3,523)	(3,801)	(1,311)	3,247	—	—


December 31, 2023	Earlier of contractual maturity or repricing date
(in $ millions)	Within 3 months	3 to 6 months	6 to 12 months	1 to 5 years	After 5 years	Non-interest bearing funds	Total
Assets
Cash and cash equivalents	1,555	—	—	—	—	92	1,647
Securities purchased under agreement to resell	187	—	—	—	—	—	187
Short-term investments	665	322	51	—	—	—	1,038
Investments	174	52	156	765	4,145	—	5,292
Loans	2,378	114	330	1,548	338	38	4,746
Other assets	—	—	—	—	—	464	464
Total assets	4,959	488	537	2,313	4,483	594	13,374

Liabilities and shareholders' equity
Shareholders’ equity	—	—	—	—	—	1,004	1,004
Demand deposits	5,602	—	—	—	—	2,657	8,259
Term deposits	2,676	489	479	84	—	—	3,728

Other liabilities	—	—	—	—	—	285	285
Long-term debt	—	—	—	98	—	—	98
Total liabilities and shareholders' equity	8,278	489	479	182	—	3,946	13,374



Interest rate sensitivity gap	(3,319)	(1)	58	2,131	4,483	(3,352)	—
Cumulative interest rate sensitivity gap	(3,319)	(3,320)	(3,262)	(1,131)	3,352	—	—

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 16: Long-term debt

On May 24, 2018, the Bank issued US $75 million of Subordinated Lower Tier II capital notes. The notes were issued at par and due on June 1, 2028. The issuance was by way of a registered offering with US institutional investors. The notes are 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 $47 million outstanding subordinated notes Series 2003-B. The notes issued pay a fixed coupon of 5.25% until June 1, 2023 when they become redeemable in whole at the option of the Bank. The notes were priced at a spread of 2.27% over the 10-year US Treasury yield. The Bank incurred $1.8 million of costs directly related to the issuance of these capital notes. These costs have been capitalized directly against the carrying value of these notes on the balance sheet and were amortized over the life of the notes. These notes were redeemed at face value in June 2023 at which time, unamortized issuance costs were fully recognized in the Consolidated Statements of Operations as part of interest expense.

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 are 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 pay a fixed coupon of 5.25% until June 15, 2025 when they become 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. These costs have been capitalized directly against the carrying value of these notes on the balance sheet, and will be amortized over the life of the notes.

No interest was capitalized during the nine months ended September 30, 2024, and the year ended December 31, 2023.

The following table presents the contractual maturity and interest payments for long-term debt issued by the Bank as at September 30, 2024. The interest payments are calculated until contractual maturity using the Secured Overnight Financing Rate ("SOFR").

Interest payments until contractual maturity

Long-term debt

Earliest date redeemable at the Bank's option

Contractual maturity date

Interest rate until date redeemable

Interest rate from earliest date redeemable to contractual maturity

Principal Outstanding

Within
1 year

1 to 5
years

After
5 years

Bermuda

2020 issuance

June 15, 2025

June 15, 2030

5.25

3 months US$ SOFR + 5.060%

100,000

7,811

40,665

7,599

Unamortized debt issuance costs

(1,334)

Long-term debt less unamortized debt issuance costs

98,666

Note 17: 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 nine months ended September 30, 2024, the average number of outstanding awards of unvested common shares was 1.6 million (September 30, 2023: 1.4 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 ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023

Net income	52,716	48,746	156,738	171,950






Basic Earnings Per Share
Weighted average number of common shares issued	45,288	49,232	46,218	49,884
Weighted average number of common shares held as treasury stock	(619)	(619)	(619)	(619)
Weighted average number of common shares (in thousands)	44,669	48,613	45,599	49,265

Basic Earnings Per Share	1.18	1.00	3.44	3.49

Diluted Earnings Per Share
Weighted average number of common shares	44,669	48,613	45,599	49,265

Net dilution impact related to awards of unvested common shares	888	527	743	423
Weighted average number of diluted common shares (in thousands)	45,557	49,140	46,342	49,688

Diluted Earnings Per Share	1.16	0.99	3.38	3.46

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 18: 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") which replaces and previous 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. Both types of awards are detailed below.

Stock Option Awards

2020 Plans

Under the 2020 Plan, options are 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 usually equal to the price of the most recently traded common share when granted and have a term of 10 years. The subscription price is reduced for all special dividends declared by the Bank. Stock option awards granted under the 2020 Plan vest based on two specific types of vesting conditions i.e., time and performance conditions, as detailed below:

Time vesting condition

50% of each option award was granted in the form of time vested options and vested 25% on each of the second, third, fourth and fifth anniversaries of the effective grant date.

In addition to the time vesting conditions noted above, the options will generally vest immediately:

• by reason of the employee’s death or disability,

• upon termination, by the Bank, of the holder’s employment, unless if in relation with the holder’s misconduct, or

• in limited circumstances and specifically approved by the Board, as stipulated in the holder’s employment contract.

In the event of the employee’s resignation, any unvested portion of the awards shall generally be forfeited and any vested portion of the options shall generally remain exercisable during the 90-day period following the termination date or, if earlier, until the expiration date, and any vested portion of the options not exercised as of the expiration of such period shall be forfeited without any consideration therefore.

Performance vesting condition

50% of each option award was granted in the form of performance options and would vest (partially or fully) on a “valuation event” date (the date that any of the March 2, 2010 new investors transfers at least 5% of the total number of common shares or the date that there is a change in control and any of the new investors realize a predetermined multiple of invested capital ("MOIC"). On September 21, 2016, it was determined that a valuation event occurred during which a new investor realized a MOIC of more than 200% of the original invested capital of $12.09 per share and accordingly, all outstanding unvested performance options vested.

There were no stock options outstanding as at September 30, 2024 and December 31, 2023.

Share-Based Incentive Programs

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 of unvested share awards granted in the three months ended September 30, 2024 was $30.09 per share (December 31, 2023: $32.89 per share). The Bank expects to settle these awards by issuing new shares.

Employee Deferred Incentive Program ("EDIP")

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 ("ELTIP")

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 ("ESPP")

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 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 nine months ended September 30, 2024, 8,860 shares (December 31, 2023: 26,551 shares) were issued under the ESPP.

The Bank of N.T. Butterfield & Son Limited

Notes to the Consolidated Financial Statements (unaudited) (continued)

(In thousands of US dollars, unless otherwise stated)


Changes in Outstanding ELTIP and EDIP awards (in thousands of shares transferable upon vesting)
	Nine months ended
	September 30, 2024		September 30, 2023
	EDIP	ELTIP	EDIP	ELTIP
Outstanding at beginning of period	665	915	621	705



Granted	98	558	189	376
Vested (fair value in 2024: $14.2 million, 2023: $10.8 million, )	(139)	(334)	(141)	(185)








Forfeitures (resignations, retirements, redundancies)	(3)	(2)	—	—
Outstanding at end of period	621	1,137	669	896

Share-based Compensation Cost Recognized in Net Income

Nine months ended

September 30, 2024

September 30, 2023

EDIP and
ELTIP

Cost recognized in net income

15,285

14,323


Unrecognized Share-based Compensation Cost
	September 30, 2024		December 31, 2023
	Unrecognized cost	Weighted average years over which it is expected to be recognized	Unrecognized cost	Weighted average years over which it is expected to be recognized




EDIP	10,144	2.09	11,774	2.66

ELTIP
Time vesting shares	79	1.37	118	2.12
Performance vesting shares	18,763	1.95	12,416	1.76
Total unrecognized expense	28,986		24,308

Note 19: 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 February 10, 2021, the Board approved a new common share repurchase program, authorizing the purchase of up to 2.0 million common shares through to February 28, 2022.

On February 14, 2022, the Board approved a new common share repurchase program, authorizing the purchase of up to 2.0 million common shares through to February 28, 2023.

On February 13, 2023, the Board approved a new common share repurchase program, authorizing the purchase of up to 3.0 million common shares through to February 29, 2024.

On December 5, 2023, the Board approved a new common share repurchase program, authorizing the purchase of up to 3.5 million common shares through to December 31, 2024.

On July 22, 2024, the Board approved a new common share repurchase program, authorizing the purchase of up to 2.1 million common shares which is effective upon full utilization of the existing program through to December 31, 2024.

In the nine months ended September 30, 2024, the Bank repurchased and retired 3,228,523 shares.


	Nine months ended	Year ended December 31
Common share repurchases	September 30, 2024	2023	2022
Acquired number of shares (to the nearest 1)	3,228,523	3,133,717	102,000
Average cost per common share	33.46	28.27	38.21
Total cost (in US dollars)	108,030,209	88,590,240	3,897,268

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 20: 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
Nine months ended September 30, 2024				Pension	Post-retirement healthcare	Subtotal - employee benefits plans	Total AOCIL
Balance at beginning of period	(25,478)	(82,067)	(162,910)	(51,563)	11,820	(39,743)	(310,198)

Other comprehensive income (loss), net of taxes	1,945	6,206	46,827	2,571	(1,341)	1,230	56,208
Balance at end of period	(23,533)	(75,861)	(116,083)	(48,992)	10,479	(38,513)	(253,990)

	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
Nine months ended September 30, 2023				Pension	Post- retirement healthcare	Subtotal - employee benefits plans	Total AOCIL
Balance at beginning of period	(25,700)	(91,212)	(220,345)	(47,905)	7,710	(40,195)	(377,452)

Other comprehensive income (loss), net of taxes	(348)	7,282	(16,694)	1,732	(607)	1,125	(8,635)
Balance at end of period	(26,048)	(83,930)	(237,039)	(46,173)	7,103	(39,070)	(386,087)


Net Change of AOCIL Components		Three months ended		Nine months ended
	Line item in the consolidated statements of operations, if any	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Net unrealized gains (losses) on translation of net investment in foreign operations adjustments
Foreign currency translation adjustments	N/A	25,571	(14,829)	21,587	2,840
Gains (losses) on net investment hedge	N/A	(23,514)	14,125	(19,642)	(3,188)
Net change		2,057	(704)	1,945	(348)

Held-to-maturity investment adjustments

Amortization of net gains (losses) to net income	Interest income on investments	2,007	2,651	6,206	7,282

Net change		2,007	2,651	6,206	7,282

Available-for-sale investment adjustments
Gross unrealized gains (losses)	N/A	61,462	(32,359)	48,424	(16,006)

Transfer of realized (gains) losses to net income	Net realized gains (losses) on AFS investments	—	3	—	14
Foreign currency translation adjustments of related balances	N/A	(1,796)	1,604	(1,597)	(702)
Net change		59,666	(30,752)	46,827	(16,694)

Employee benefit plans adjustments
Defined benefit pension plan
Net actuarial gain (loss)	N/A	—	—	1,029	—


Amortization of net actuarial (gains) losses	Non-service employee benefits expense	591	571	1,769	1,713

Amortization of prior service (credit) cost	Non-service employee benefits expense	21	20	60	59
Foreign currency translation adjustments of related balances	N/A	(339)	119	(287)	(40)
Net change		273	710	2,571	1,732

Post-retirement healthcare plan


Amortization of net actuarial (gains) losses	Non-service employee benefits expense	131	131	393	393
Amortization of prior service (credit) cost	Non-service employee benefits expense	(578)	(333)	(1,734)	(1,000)
Net change		(447)	(202)	(1,341)	(607)

Other comprehensive income (loss), net of taxes		63,556	(28,297)	56,208	(8,635)

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 21: 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 nine months ended September 30, 2024, the Bank declared and paid cash dividends of $1.32 (September 30, 2023: $1.32) 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

The Bank’s regulatory capital is determined in accordance with current Basel III 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 September 30, 2024 and 2023. The following table sets forth the Bank's capital adequacy in accordance with the Basel III framework:


	September 30, 2024				December 31, 2023
	Actual		Regulatory minimum		Actual		Regulatory minimum
Capital
CET 1 capital	1,054,289		N/A		1,042,506		N/A
Tier 1 capital	1,054,289		N/A		1,042,506		N/A
Tier 2 capital	107,244		N/A		109,423		N/A
Total capital	1,161,533		N/A		1,151,929		N/A

Risk Weighted Assets	4,776,408		N/A		4,540,745		N/A

Leverage Ratio Exposure Measure	14,765,011		N/A		13,777,771		N/A

Capital Ratios (%)
CET 1 capital	22.1	%	10.0	%	23.0	%	10.0	%
Tier 1 capital	22.1	%	11.5	%	23.0	%	11.5	%
Total capital	24.3	%	13.5	%	25.4	%	13.5	%
Leverage ratio	7.1	%	5.0	%	7.6	%	5.0	%

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 September 30, 2024 and December 31, 2023. 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, 2022			20,393
Net loans issued (repaid) during the year			(658)

Balance at December 31, 2023			19,735
Net loans issued (repaid) during period			(529)
Effect of changes in the composition of related parties			983
Balance at September 30, 2024			20,189


Consolidated balance sheets	September 30, 2024	December 31, 2023
Deposits	47,546	100,364

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		Nine months ended
Consolidated statement of operations	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Interest and fees on loans	326	294	958	850
Total non-interest expense	33	37	149	162
Other non-interest income	58	111	182	147

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 sheets	September 30, 2024	December 31, 2023
Loans	9,479	9,801
Deposits	451	288
Accrued interest and other liabilities	153	305


	Three months ended		Nine months ended
Consolidated statement of operations	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Interest and fees on loans	196	212	597	617

Total non-interest expense	329	435	1,148	1,206
Other non-interest income	61	61	184	182

Investments

As at September 30, 2024, 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 sheets	September 30, 2024	December 31, 2023

Deposits	7,444	4,633


	Three months ended		Nine months ended
Consolidated statement of operations	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Asset management	2,846	2,356	8,103	6,855
Custody and other administration services	358	305	1,019	864

Interest expense - deposits	—	221	—	235

Note 23: Subsequent events

On October 22, 2024, the Board of Directors declared an interim dividend of $0.44 per common share to be paid on November 19, 2024 to shareholders of record on November 5, 2024.

Third Quarter 2024 The Bank of N.T. Butterfield & Son Limited Earnings Presentation October 23, 2024

2 Forward-Looking Statements 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 Non-GAAP Financial Measures: This presentation contains non-GAAP financial measures including “core” net income and other financial measures presented on a “core” basis. 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 these non-GAAP measures to corresponding GAAP financial measures are provided in the Appendix of this presentation. Presentation of Financial Information: Certain monetary amounts, percentages and other figures included in this report 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.

3 Agenda and Overview Ten International Locations Butterfield Overview Michael Collins Chairman and Chief Executive Officer Craig Bridgewater Group Chief Financial Officer Michael Schrum President and 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 • Third Quarter 2024 Financials • 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 ESG Membership Awards

4 Third Quarter 2024 Highlights Net Income (In US$ millions) Return on Equity (In US$ millions) vs. Q2 2024 vs. Q3 2023 Q3 2024 $ % $ % Net Interest Income $ 88.1 $ 0.6 $ (2.1) Non-Interest Income 56.0 0.4 4.0 Provision for Credit Losses (1.3) (0.8) (0.8) Non-Interest Expenses* (90.0) 2.1 2.9 Other Gains (Losses) (0.1) (0.1) (0.1) Net Income $ 52.7 $ 2.1 4.2 % $ 4.0 8.1 % Non-Core Items** 0.1 0.7 (8.1) Core Net Income** $ 52.8 $ 1.4 2.7 % $ (4.1) (7.2) % • Net income of $52.7 million, or $1.16 per share • Core net income** of $52.8 million, or $1.16 per share • Return on average common equity of 20.3%; core return on average tangible common equity** of 22.5% • Net Interest Margin of 2.61%, cost of deposits of 1.91% • Cash dividend rate of $0.44 per common share during the quarter • Repurchases of 1.0 million shares at an average price of $37.00 per share * Includes income taxes ** See the Appendix for a reconciliation of the non-GAAP measure $48.7 $53.5 $53.4 $50.6 $52.7 $57.0 $55.3 $55.0 $51.4 $52.8 Net income Core Net Income** Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 20.6% 22.5% 21.5% 20.7% 20.3% 26.1% 25.4% 24.5% 23.3% 22.5% Return on Equity Core Return on Average Tangible Common Equity** Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024

Financials

6 Net Interest Income before Provision for Credit Losses -Trend (In US$ millions) $90.2 $87.4 $88.1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Interest Margin & Yields Income Statement Net Interest Income • Net interest income (“NII”) was higher versus the prior quarter primarily due to higher average interest earning assets, which were partially offset by higher deposit costs and lower treasury yields • Net interest margin (“NIM”) decreased by 3 basis points to 2.61% due to mix shift to term deposits and lower treasury yields, offset by increased yields on investments • Average interest earning assets increased by $114.0 million due to increased average deposit volumes. Investment volumes increased due to activation of cash and short-term securities into US Treasuries and Agency MBS securities. Loan volume was lower as a result of continued net repayments during the quarter (In US$ millions) Q3 2024 vs. Q2 2024 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos $ 3,572.7 4.66 % $ 103.9 (0.12) % Investments 5,239.2 2.39 % 66.6 0.09 % Loans (net) 4,566.2 6.64 % (56.5) (0.01) % Interest Earning Assets 13,378.1 4.45 % 114.0 (0.01) % Interest Bearing Liabilities 9,986.3 (2.46) % 77.2 (0.03) % Net Interest Margin 2.61 % (0.03) %

7 Non-Interest Income Trend (In US$ millions)(In US$ millions) Q3 2024 vs. Q2 2024 Asset management $ 9.5 $ 0.6 Banking 14.4 0.6 Foreign exchange revenue 12.2 (0.4) Trust 15.8 0.3 Custody and other 3.5 0.1 Other 0.7 (0.9) Total Non-Interest Income $ 56.0 $ 0.4 $52.0 $55.6 $56.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • Total non-interest income was up $0.4 million versus the prior quarter, primarily due to higher card volume, one-off loan prepayment fees and increases in asset management income from fees associated with higher asset valuations. The increases were partially offset by lower unclaimed customer balances recognized into income versus the prior quarter • The fee income ratio was 39.2% in the third quarter of 2024 which compares favorably to historical peer* averages and the 39.0% in the prior quarter Income Statement Non-Interest Income * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks.

8 Core Non-Interest Expense* Trend (In US$ millions) Core Non-Interest Expenses* vs. Q2 2024 (In US$ millions) Q3 2024 $ % Salaries & Benefits** $ 44.7 $ — (0.1) % Technology & Comm. 16.5 (0.4) (2.3) % Professional & O/S Services 4.7 (1.4) (22.7) % Property 8.6 0.3 3.9 % Indirect Taxes 5.5 — (0.3) % Marketing 1.3 (0.3) (18.6) % Intangible Amortization 1.9 0.1 2.8 % Other 5.6 0.1 1.5 % Total Core Non-Interest Expenses* $ 88.6 $ (1.7) (1.8) % Non-Core Expenses* 0.1 (0.7) (85.4) % Non-Interest Expenses $ 88.8 $ (2.4) (2.6) % $84.3 $90.3 $88.6 58.3% 61.8% 60.2% Core Efficiency Ratio* Core Non-Interest Expenses* Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • Core non-interest expenses* were lower than the prior quarter primarily due to decreased professional services costs • Core efficiency ratio* of 60.2% was below the prior quarter and in-line with the Bank’s through-cycle core efficiency ratio target of 60% * See the Appendix for a reconciliation of the non-GAAP measure ** Includes Non-Service Employee Benefits Expense Income Statement Non-Interest Expenses

9 Balance Sheet Total Assets (In US$ billions) • Period end deposit balances increased by $0.7 billion to $12.7 billion compared to December 31, 2023 • Average deposit balances increased by $0.6 billion over the fourth quarter of 2023 to $12.4 billion • Butterfield’s balance sheet remained low in risk density (risk weighted assets/total assets) at 33.2% vs Q4 2023 (In US$ millions) Q3 2024 Q4 2023 % Cash and cash equivalents $ 2,067 $ 1,647 26 % Reverse Repos & S/T Investments 1,750 1,225 43 % Investments 5,468 5,292 3 % Loans (net) 4,648 4,746 (2) % Other Assets 441 464 (5) % Total Assets $ 14,373 $ 13,374 8 % Int. Bearing Deposits $ 10,317 $ 9,330 11 % Non-Int. Bearing Deposits 2,420 2,657 (9) % Other Liabilities 571 384 49 % Shareholders’ Equity 1,064 1,004 6 % Total Liab. & Equity $ 14,373 $ 13,374 8 % $13.2 $13.9 $14.4 $5.3 $5.2 $5.5 $4.7 $4.6 $4.6 Total assets Investments Loans Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $11.9 $12.5 $12.7 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total Deposits (In US$ billions)

10 Asset Quality Non-Accrual Loans (In US$ millions) $59.4 $70.0 $89.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Res Mtg 69.1% Consumer 4.2% Comm’l R/E 12.7% Other Comm’l 7.9% Government 6.0% Loan Distribution 0.04% 0.01% 0.03% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.00% 0.05% 0.10% 0.15% 0.20% Net Charge-Off Ratio $4.6 billion $5.5 billion Investment Portfolio Rating Distribution • 69% of the total loan portfolio consists of full-recourse residential mortgages of which 80% have loans-to-values below 70% • Non-accrual loans increased to 1.9% of gross loans, up from 1.5% in the prior quarter driven by a residential mortgage in the Channel Islands and UK segment • Allowance for credit losses at $25.8 million represented an ACL/Total loans ratio of 0.6%, consistent with the prior quarter • The net charge-off ratio continues to be low at 0.03% of total gross loans AAA 0.3% AA 99.7%

11 Interest Rate Sensitivity Interest Rate SensitivityAverage Balance - Balance Sheet Average Balances (US$Mil) Weighted Average Life Q3 2024 vs. Q2 2024 Duration vs. Q2 2024 Cash & Reverse Repos & S/T Invest. $ 3,572.7 $ 103.9 0.1 — N/A AFS 1,907.3 110.2 3.4 0.1 4.2 HTM** 3,331.9 (43.5) 6.5 — 8.7 Total $ 8,811.9 $ 170.6 (5.0)% 3.5% 5.7% (1.3)% 1.4% 2.8% NTB US Peer Median * -100bps +100bps +200bps • Total investment portfolio duration remained consistent at 5.2 years compared to the prior quarter • Interest rate sensitivity increased compared to the previous quarter following the recent US Fed rate cuts and a modest increase in cash and short-term investments • Net unrealized losses on AFS securities improved versus the prior quarter end to $117.1 million as at September 30, 2024, compared with net unrealized losses of $176.8 million as at the end of the second quarter * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q2 2024 comparative data is used as Q3 2024 peer information was not widely 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.

12 Capital Requirements and Dividend Return Leverage Capital • Regulatory capital levels remain conservatively above minimum requirements • Quarterly dividend rate continues at $0.44 per common share • TCE/TA ratio of 6.8%, at the high end of the targeted range of 6.0% to 6.5% • Tangible book value per share increased by 9.3% to $21.90 primarily driven by improved OCI Regulatory Capital (Basel III) - Total Capital Ratio* 24.3% 13.5% 15.1% Butterfield Current BMA Minimum US Peer Median*** *** Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q2 2024 comparative data is used as Q3 2024 peer information was not widely available at time of publication. 7.9% 10.2% 6.8% 9.8% 1.1% 0.4% TCE/TA TCE/TA Ex Cash Butterfield - Current US Peer Median*** 53.7% 40.7% 38.1% 38.4% 2021 2022 2023 Q3 2024 Dividend Payout Ratio * In accordance with regulatory capital guidance, the Bank has elected to make use of transitional arrangements which allow the deferral of the January 1, 2020 CECL impact of $7.8 million on its regulatory capital over a period of 5 years. ** 2024 is based on year-to-date dividend and earnings per share

Appendix

14 Group (US$ Billions) Bermuda (US$ Billions) Deposit Composition by Segment Cayman (US$ Billions) Channel Islands (US$ Billions) 22% 22% 21% 20% 19% 48% 47% 46% 47% 47% 30% 31% 33% 33% 34% $11.9 $12.0 $12.1 $12.5 $12.7 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 22% 25% 24% 23% 22% 52% 49% 50% 51% 45% 26% 26% 26% 27% 33% $3.8 $4.0 $3.9 $3.9 $3.8 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 37% 36% 35% 34% 34% 45% 42% 43% 45% 46% 18% 22% 22% 21% 19% $4.5 $4.5 $4.5 $4.6 $4.6 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 —% 1% —% 1% 1% 49% 50% 46% 46% 49% 51% 49% 54% 53% 50% $3.5 $3.5 $3.7 $4.0 $4.4 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024

15 32% 29% 29% 29% 27% 18% 21% 23% 22% 21% 49% 50% 49% 49% 52% $3.4 $3.6 $3.6 $3.3 $3.2 Bermuda Cayman UK and Channel Islands 2020 2021 2022 2023 Q3 2024 29% 26% 24% 21% 20% 5% 7% 9% 9% 10% 18% 18% 21% 22% 23% 49% 48% 46% 48% 48% $1.6 $1.4 $1.4 $1.3 $1.2 Commercial and Industrial Commercial Overdrafts Government Commercial Real Estate 2020 2021 2022 2023 Q3 2024 Residential Mortgage Loans (US$ Billions) Commercial Loans (US$ Billions) Loans 44% 39% 37% 37% 34% 18% 20% 24% 25% 24% 38% 41% 39% 38% 42% $5.2 $5.2 $5.1 $4.7 $4.6 Bermuda Cayman UK and Channel Islands 2020 2021 2022 2023 Q3 2024 Loan Portfolio Composition by Originating Segment (US$ Billions) 20% 19% 43% 51% 48% 80% 81% 57% 49% 52% $5.2 $5.2 $5.1 $4.7 $4.6 Fixed Floating 2020 2021 2022 2023 Q3 2024 Fixed vs. Floating Rate Loans (US$ Billions)

16 Loan-to-Deposit Ratio Balance Sheet Asset Mix Liquidity: Cash & Cash Equivalents** to Total Assets 40% 40% 38% 37% 37% 68% 68% 69% 71% NTB US Peer Median* Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 20% 21% 24% 26% 27% 3% 4% 4% 4% NTB US Peer Median* Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • Butterfield takes a conservative approach to managing the liquidity and funding risk profile of its balance sheet. This involves the retention of a significant liquidity holding of cash or cash equivalent balances, comprised of interbank deposits and short-dated sovereign Canadian, UK and US Treasury Bills, as well as maintaining significant liquidity facilities with correspondent banks • Butterfield also maintains capital, liquidity and funding buffers conservatively in excess of regulatory requirements * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. Q3 2024 peer information was not widely available at time of publication and therefore not included. ** Includes securities purchased under agreements to resell and short-term investments.

17 Balance Sheet Movements Deposit Composition by Currency (US$ billions)Deposit Movements (US$ millions) $190 $800 Change vs Q2 2024 Change vs Q4 2023 Loan Movements (US$ millions) Loan Composition by Currency (US$ billions) +15 +175 $60 $(100) Change vs Q2 2024 Change vs Q4 2023 Volume FX Translation 75% 73% 72% 19% 22% 21% 6% 6% 8% $11.9 $12.5 $12.7 USD / USD Pegged GBP Other Total deposits Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 62% 61% 59% 37% 38% 40% 1% 1% 1% $4.7 $4.6 $4.6 USD / USD Pegged GBP Other Total loans Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 -185 +85 +680 +120 -40 +100

18 (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Assets Cash and cash equivalents $ 2,067 $ 2,390 $ 1,746 $ 1,647 $ 1,750 $ 1,795 $ 1,345 $ 2,101 $ 1,485 Reverse Repos & S/T Investments 1,750 1,289 1,480 1,225 893 729 1,263 944 995 Investments 5,468 5,168 5,168 5,292 5,319 5,546 5,665 5,727 5,805 Loans, Net 4,648 4,585 4,644 4,746 4,750 5,003 5,022 5,096 4,992 Other Assets 441 506 490 464 468 435 438 437 422 Total Assets $ 14,373 $ 13,939 $ 13,528 $ 13,374 $ 13,180 $ 13,510 $ 13,733 $ 14,306 $ 13,699 Liabilities and Equity Total Deposits $ 12,738 $ 12,548 $ 12,131 $ 11,987 $ 11,861 $ 12,192 $ 12,348 $ 12,991 $ 12,461 Long-Term Debt 99 99 99 98 98 98 172 172 172 Other Liabilities 472 293 304 285 297 269 275 278 311 Total Liabilities $ 13,309 $ 12,940 $ 12,533 $ 12,370 $ 12,257 $ 12,559 $ 12,796 $ 13,441 $ 12,944 Common Equity $ 1,064 $ 999 $ 995 $ 1,004 $ 923 $ 950 $ 937 $ 865 $ 755 Total Equity $ 1,064 $ 999 $ 995 $ 1,004 $ 923 $ 950 $ 937 $ 865 $ 755 Total Liabilities and Equity $ 14,373 $ 13,939 $ 13,528 $ 13,374 $ 13,180 $ 13,510 $ 13,733 $ 14,306 $ 13,699 Key Metrics CET 1 Ratio 22.1 % 22.5 % 22.6 % 23.0 % 23.4 % 22.7 % 22.2 % 20.3 % 18.9 % Total Tier 1 Capital Ratio 22.1 % 22.5 % 22.6 % 23.0 % 23.4 % 22.7 % 22.2 % 20.3 % 18.9 % Total Capital Ratio 24.3 % 24.8 % 24.9 % 25.4 % 25.8 % 25.1 % 26.2 % 24.1 % 22.7 % Leverage ratio 7.1 % 7.3 % 7.5 % 7.6 % 7.8 % 7.6 % 7.2 % 6.7 % 6.4 % Risk-Weighted Assets (in $ millions) 4,776 4,668 4,648 4,541 4,522 4,628 4,604 4,843 4,780 Risk-Weighted Assets / total assets 33.2 % 33.5 % 34.4 % 34.0 % 34.3 % 34.3 % 33.5 % 33.9 % 34.9 % Tangible common equity ratio 6.8 % 6.5 % 6.7 % 6.8 % 6.5 % 6.5 % 6.3 % 5.6 % 5.0 % Book value per common share (in $) 24.09 22.12 21.53 21.39 19.20 19.34 18.80 17.42 15.21 Tangible book value per share (in $) 21.90 20.03 19.45 19.29 17.73 17.83 17.32 15.92 13.76 Non-accrual loans/gross loans 1.9 % 1.5 % 1.3 % 1.3 % 1.2 % 1.2 % 1.1 % 1.2 % 1.2 % Non-performing assets/total assets 1.5 % 1.1 % 1.2 % 1.0 % 0.8 % 0.7 % 0.6 % 0.5 % 0.5 % Allowance for credit losses/total loans 0.6 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % Balance Sheet Trends

19 (in millions of US Dollars, unless otherwise indicated) Q3 2024 Q2 2024 Q3 2023 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 $ 3,572.7 $ 42.0 4.66 % $ 3,468.8 $ 41.4 4.78 % $ 2,559.2 $ 28.8 4.47 % Investment in securities 5,239.2 31.5 2.39 % 5,172.6 29.6 2.30 % 5,494.9 28.5 2.06 % AFS 1,907.3 12.7 2.64 % 1,797.1 10.8 2.41 % 1,926.0 8.8 1.81 % HTM 3,331.9 18.9 2.24 % 3,375.4 18.8 2.24 % 3,568.9 19.7 2.19 % Loans 4,566.2 76.4 6.64 % 4,622.7 76.6 6.65 % 4,897.5 80.4 6.51 % Commercial 1,298.9 21.6 6.61 % 1,342.8 21.7 6.50 % 1,394.9 23.2 6.60 % Consumer 3,267.3 54.8 6.66 % 3,279.9 54.8 6.71 % 3,502.6 57.2 6.47 % Total interest earning assets 13,378.1 150.0 4.45 % 13,264.1 147.6 4.46 % 12,951.6 137.7 4.22 % Other assets 421.5 430.4 416.7 Total assets $ 13,799.6 $ 13,694.5 $ 13,368.3 Liabilities Deposits - interest bearing $ 9,805.8 $ (59.7) (2.41) % $ 9,807.6 $ (58.7) (2.40) % $ 9,340.4 $ (46.1) (1.96) % Securities sold under agreement to repurchase 81.9 (0.9) (4.30) % 2.9 — (4.83) % — — — % Long-term debt 98.6 (1.4) (5.52) % 98.6 (1.4) (5.58) % 98.4 (1.4) (5.53) % Interest bearing liabilities 9,986.3 (61.9) (2.46) % 9,909.1 (60.1) (2.43) % 9,438.8 (47.5) (2.00) % Non-interest bearing customer deposits 2,561.9 2,636.8 2,739.3 Other liabilities 249.6 243.8 279.3 Total liabilities $ 12,797.8 $ 12,789.6 $ 12,457.4 Shareholders’ equity 1,001.9 904.9 910.9 Total liabilities and shareholders’ equity $ 13,799.6 $ 13,694.5 $ 13,368.3 Non-interest bearing funds net of non- interest earning assets (free balance) $ 3,391.8 $ 3,355.0 $ 3,512.8 Net interest margin $ 88.1 2.61 % $ 87.4 2.64 % $ 90.2 2.76 % Average Balance Sheet Trends

20 (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Net Interest Income $ 88.1 $ 87.4 $ 87.1 $ 86.9 $ 90.2 $ 92.5 $ 97.4 $ 94.6 $ 91.2 Non-Interest Income 56.0 55.6 55.1 60.0 52.0 50.2 50.2 54.9 49.9 Prov. for Credit (Losses) Recovery (1.3) (0.5) 0.4 (1.7) (0.5) (1.5) (0.7) (1.6) (0.8) Non-Interest Expenses* 90.0 92.1 89.4 91.4 92.9 84.1 84.8 85.4 82.9 Other Gains (Losses) (0.1) 0.1 0.2 (0.3) — 4.0 0.1 0.6 0.1 Net Income $ 52.7 $ 50.6 $ 53.4 $ 53.5 $ 48.7 $ 61.0 $ 62.2 $ 63.1 $ 57.4 Non-Core Items** $ 0.1 $ 0.8 $ 1.6 $ 1.8 $ 8.2 $ (4.0) $ — $ 0.1 $ 0.2 Core Net Income** $ 52.8 $ 51.4 $ 55.0 $ 55.3 $ 57.0 $ 57.0 $ 62.2 $ 63.2 $ 57.6 Key Metrics Loan Yield 6.64 % 6.65 % 6.58 % 6.68 % 6.51 % 6.42 % 6.23 % 5.79 % 5.05 % Securities Yield 2.39 2.30 2.23 2.16 2.06 2.07 2.12 2.03 1.94 Cost of Deposits 1.91 1.89 1.78 1.72 1.52 1.27 1.10 0.78 0.34 Net Interest Margin 2.61 2.64 2.68 2.73 2.76 2.83 2.88 2.79 2.59 Core Efficiency Ratio** 60.2 61.8 59.8 60.5 58.3 57.6 56.0 55.6 57.0 Core ROATCE** 22.5 23.3 24.5 25.4 26.1 26.3 30.5 34.9 31.6 Fee Income Ratio 39.2 39.0 38.6 41.3 36.7 35.5 34.2 37.1 35.6 Fully Diluted Share Count (in millions of common shares) 45.6 46.3 47.2 48.1 49.1 49.9 50.1 50.0 49.8 * Includes income taxes ** See the reconciliation of non-GAAP measures on pages 23-24 Income Statement Trends

21 (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Non-Interest Income Asset Management $ 9.5 $ 8.9 $ 8.8 $ 8.3 $ 8.0 $ 8.2 $ 7.9 $ 7.4 $ 7.4 Banking 14.4 13.8 14.3 18.6 14.1 12.6 13.6 17.5 14.1 FX Revenue 12.2 12.6 13.2 12.8 11.4 11.3 10.7 11.5 11.8 Trust 15.8 15.4 15.0 16.0 14.7 14.3 12.8 13.7 12.6 Custody & Other Admin. 3.5 3.4 3.3 3.3 3.3 3.3 3.3 3.4 3.3 Other 0.7 1.6 0.4 1.0 0.6 0.5 1.8 1.4 0.7 Total Non-Interest Income $ 56.0 $ 55.6 $ 55.1 $ 60.0 $ 52.0 $ 50.2 $ 50.2 $ 54.9 $ 49.9 Non-Interest Expense Salaries & Benefits* $ 44.7 $ 44.8 $ 43.8 $ 45.9 $ 51.3 $ 42.6 $ 43.7 $ 44.7 $ 42.0 Technology & Comm. 16.5 16.9 16.1 17.2 16.0 14.9 13.9 14.3 14.3 Professional & O/S Services 4.8 6.7 5.5 7.0 4.3 4.8 5.0 4.3 4.8 Property 8.6 8.2 8.7 8.7 7.7 7.5 7.4 8.0 7.9 Indirect Taxes 5.5 5.6 6.3 5.0 5.4 5.3 5.7 5.4 5.2 Marketing 1.3 1.6 1.3 1.7 1.5 1.7 1.5 1.8 1.5 Intangible Amortization 1.9 1.9 1.9 1.4 1.4 1.4 1.4 1.4 1.4 Other 5.6 5.5 4.9 5.2 4.8 5.4 5.3 4.7 4.9 Total Non-Interest Expense $ 88.8 $ 91.1 $ 88.5 $ 92.2 $ 92.5 $ 83.5 $ 84.1 $ 84.7 $ 82.0 Income Taxes 1.2 0.9 0.9 (0.8) 0.4 0.5 0.7 0.7 0.9 Total Expense incld. Taxes $ 90.0 $ 92.1 $ 89.4 $ 91.4 $ 92.9 $ 84.1 $ 84.8 $ 85.4 $ 82.9 *Includes non-service employee benefits Non-Interest Income & Expense Trends

22 (in millions of US Dollars, unless otherwise indicated) 2024 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Salaries & Benefits* $ 44.7 $ 44.7 $ 42.5 $ 46.2 $ 43.4 $ 42.6 $ 43.7 $ 44.7 $ 42.0 Technology & Comm. 16.5 16.9 16.1 17.2 16.0 14.9 13.9 14.3 14.3 Professional & O/S Services 4.7 6.1 5.2 4.9 4.3 4.7 5.0 4.2 4.7 Property 8.6 8.2 8.7 8.7 7.7 7.5 7.4 8.0 7.9 Indirect Taxes 5.5 5.5 6.3 5.0 5.1 5.3 5.7 5.4 5.2 Marketing 1.3 1.6 1.3 1.7 1.5 1.7 1.5 1.8 1.5 Intangible Amortization 1.9 1.9 1.9 1.4 1.4 1.4 1.4 1.4 1.4 Other 5.6 5.5 4.9 5.2 4.8 5.4 5.3 4.7 4.9 Total Core Non-Interest Expense** $ 88.6 $ 90.3 $ 86.9 $ 90.4 $ 84.3 $ 83.6 $ 84.1 $ 84.5 $ 81.8 Income Taxes 1.2 0.9 0.9 (0.8) 0.4 0.5 0.7 0.7 0.9 Total Core Expense incld. Taxes** $ 89.8 $ 91.2 $ 87.8 $ 89.6 $ 84.7 $ 84.1 $ 84.8 $ 85.3 $ 82.8 * Includes non-service employee benefits ** See the reconciliation of non-GAAP measures on pages 23-24 Core Non-Interest Expense* Trends

23 (in millions of US Dollars, unless otherwise indicated) 2024 2023 Q3 Q2 Q1 Q4 Q3 Net income A $ 52.7 $ 50.6 $ 53.4 $ 53.5 $ 48.7 Non-core (gains), losses and expenses Non-core expenses Early retirement program, voluntary separation, redundancies and other non-core compensation costs — 0.2 1.3 (0.3) 8.2 Asset acquisition costs — — — 1.9 — Restructuring charges and related professional service fees 0.1 0.6 0.3 0.2 — Total non-core expenses C $ 0.1 $ 0.8 $ 1.6 $ 1.8 $ 8.2 Total non-core (gains), losses and expenses D=B+C 0.1 0.8 1.6 1.8 8.2 Core net income to common shareholders E=A+D $ 52.8 $ 51.4 $ 55.0 $ 55.3 $ 57.0 Average shareholders' equity 1,029.2 979.4 996.1 943.0 940.2 Average common equity F 1,029.2 979.4 996.1 943.0 940.2 Less: average goodwill and intangible assets (95.5) (95.3) (97.4) (77.7) (72.9) Average tangible common equity G 933.7 884.1 898.7 865.2 867.2 Return on equity A/F 20.3 % 20.7 % 21.5 % 22.5 % 20.6 % Core return on average tangible common equity E/G 22.5 % 23.3 % 24.5 % 25.4 % 26.1 % Core earnings per common share fully diluted Adjusted weighted average number of diluted common shares (in thousands) H 45.6 46.3 47.2 48.1 49.1 Earnings per common share fully diluted A/H 1.16 1.09 1.13 1.11 0.99 Non-core items per share D/H — 0.02 0.04 0.04 0.17 Core earnings per common share fully diluted E/H 1.16 1.11 1.17 1.15 1.16 Core return on average tangible assets Total average assets I $ 14,053.9 $ 13,790.9 $ 13,480.9 $ 13,157.0 $ 13,349.0 Less: average goodwill and intangible assets (95.5) (95.3) (97.4) (77.7) (72.9) Average tangible assets J $ 13,958.3 $ 13,695.6 $ 13,383.5 $ 13,079.2 $ 13,276.0 Return on average assets A/I 1.5 % 1.5 % 1.6 % 1.6 % 1.4 % Core return on average tangible assets E/J 1.5 % 1.5 % 1.6 % 1.7 % 1.7 % Non-GAAP Reconciliation

24 (in millions of US Dollars, unless otherwise indicated) 2024 2023 Q3 Q2 Q1 Q4 Q3 Tangible equity to tangible assets Shareholders' equity K $ 1,064.2 $ 999.1 $ 995.1 $ 1,003.6 $ 922.9 Less: goodwill and intangible assets (96.7) (94.4) (96.3) (98.9) (70.6) Tangible common equity L 967.5 904.7 898.8 904.7 852.3 Total assets M 14,373.0 13,939.1 13,528.1 13,374.0 13,179.5 Less: goodwill and intangible assets (96.7) (94.4) (96.3) (98.9) (70.6) Tangible assets N $ 14,276.3 $ 13,844.7 $ 13,431.8 $ 13,275.1 $ 13,108.9 Tangible common equity to tangible assets L/N 6.8 % 6.5 % 6.7 % 6.8 % 6.5 % Tangible book value per share Basic participating shares outstanding (in millions) O 44.2 45.2 46.2 46.9 48.1 Tangible book value per common share L/O 21.90 20.03 19.45 19.29 17.73 Efficiency ratio Non-interest expenses $ 88.8 $ 91.1 $ 88.5 $ 92.2 $ 92.5 Less: Amortization of intangibles (1.9) (1.9) (1.9) (1.4) (1.4) Non-interest expenses before amortization of intangibles P 86.8 89.3 86.6 90.7 91.1 Non-interest income 56.0 55.6 55.1 60.0 52.0 Net interest income before provision for credit losses 88.1 87.4 87.1 86.9 90.2 Net revenue before provision for credit losses and other gains/losses Q $ 144.1 $ 143.1 $ 142.2 $ 146.9 $ 142.2 Efficiency ratio P/Q 60.3 % 62.4 % 60.9 % 61.7 % 64.1 % Core efficiency ratio Non-interest expenses $ 88.8 $ 91.1 $ 88.5 $ 92.2 $ 92.5 Less: non-core expenses (C) (0.1) (0.8) (1.6) (1.8) (8.2) Less: amortization of intangibles (1.9) (1.9) (1.9) (1.4) (1.4) Core non-interest expenses before amortization of intangibles R 86.7 88.4 85.0 89.0 82.9 Net revenue before provision for credit losses and other gains/losses Q 144.1 143.1 142.2 146.9 142.2 Core efficiency ratio R/Q 60.2 % 61.8 % 59.8 % 60.5 % 58.3 % Non-GAAP Reconciliation (continued)

25 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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