Bank of N.T. Butterfield & Son Limited (The) Plans Quarterly Dividend of $0.50 (NYSE:NTB)

Key Points

• Bank of N.T. Butterfield & Son declared a quarterly dividend of $0.50 per share (ex-dividend and record date: May 13), payable May 27, implying a yield of about 3.6%.
• The bank beat EPS estimates with quarterly earnings of $1.55 (vs. $1.40 expected) but missed on revenue ($93.3M vs. $150.4M expected); it delivered a 21.7% ROE and a 29% net margin with revenue up 4.3% year-over-year.
• Butterfield’s dividend is well covered: a current payout ratio of 38.0% and analyst forecasts of $6.70 EPS next year imply an expected future payout ratio near 29.9%, supporting dividend sustainability.

Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB - Get Free Report) declared a quarterly dividend on Tuesday, April 28th. Shareholders of record on Wednesday, May 13th will be paid a dividend of 0.50 per share by the bank on Wednesday, May 27th. This represents a c) dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Wednesday, May 13th.

Bank of N.T. Butterfield & Son has increased its dividend payment by an average of 0.0%per year over the last three years. Bank of N.T. Butterfield & Son has a dividend payout ratio of 38.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Bank of N.T. Butterfield & Son to earn $6.70 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 29.9%.

Bank of N.T. Butterfield & Son Price Performance

Shares of NTB stock opened at $56.19 on Wednesday. The company has a market capitalization of $2.36 billion, a PE ratio of 10.25 and a beta of 0.51. Bank of N.T. Butterfield & Son has a 12 month low of $39.74 and a 12 month high of $57.84. The firm's 50-day moving average is $52.97 and its two-hundred day moving average is $50.03.

Bank of N.T. Butterfield & Son (NYSE:NTB - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The bank reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates of $1.40 by $0.15. The business had revenue of $93.29 million during the quarter, compared to analysts' expectations of $150.35 million. Bank of N.T. Butterfield & Son had a return on equity of 21.72% and a net margin of 29.00%.The company's revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business posted $1.30 EPS. Sell-side analysts forecast that Bank of N.T. Butterfield & Son will post 5.94 EPS for the current year.

Institutional Investors Weigh In On Bank of N.T. Butterfield & Son

A number of hedge funds have recently added to or reduced their stakes in the business. Seelaus Asset Management LLC raised its stake in shares of Bank of N.T. Butterfield & Son by 4.1% in the fourth quarter. Seelaus Asset Management LLC now owns 6,275 shares of the bank's stock valued at $313,000 after acquiring an additional 250 shares in the last quarter. Strs Ohio increased its stake in Bank of N.T. Butterfield & Son by 1.6% in the third quarter. Strs Ohio now owns 18,900 shares of the bank's stock valued at $811,000 after purchasing an additional 300 shares during the last quarter. Raymond James Financial Inc. increased its stake in Bank of N.T. Butterfield & Son by 5.6% in the third quarter. Raymond James Financial Inc. now owns 6,162 shares of the bank's stock valued at $264,000 after purchasing an additional 328 shares during the last quarter. Bell Investment Advisors Inc increased its stake in Bank of N.T. Butterfield & Son by 284.4% in the third quarter. Bell Investment Advisors Inc now owns 615 shares of the bank's stock valued at $26,000 after purchasing an additional 455 shares during the last quarter. Finally, Cerity Partners LLC increased its stake in Bank of N.T. Butterfield & Son by 3.2% in the second quarter. Cerity Partners LLC now owns 14,779 shares of the bank's stock valued at $654,000 after purchasing an additional 457 shares during the last quarter. 62.73% of the stock is currently owned by institutional investors and hedge funds.

About Bank of N.T. Butterfield & Son

Bank of N.T. Butterfield & Son Limited, commonly known as Butterfield, is a Bermuda-based provider of banking and wealth management services. Founded in 1858, the firm has grown from a local colonial bank into an international financial institution. With a focus on personalized client service, Butterfield offers a comprehensive suite of banking and fiduciary solutions to private individuals, families, and corporate clients.

The bank's core activities include private banking, retail and commercial lending, trust and corporate administration, and fund services.

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