First Quarter 2018 Earnings Presentation The Bank of N.T. - PowerPoint PPT Presentation

First Quarter 2018 Earnings Presentation The Bank of N.T. Butterfield & Son Limited April 24, 2018

Forward-Looking Statements Forward-Looking Statements : Certain of the statements made in this presentation are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our current beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance, capital, ownership or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Our performance may vary due to a variety of factors, including worldwide economic conditions, success in business retention and obtaining new business and other factors. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our Securities and Exchange Commission (“SEC”) reports and filings. Such reports are available upon request from the Bank, or from the SEC, including through the SEC’s Internet website at http:// www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made other than required by law. 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. 2 All information in $millions and as of December 31, 2017 unless otherwise indicated . Conversion rate: 1 BMD$ = 1 US$.

First Quarter 2018 Earnings Presentation Presenters Agenda Butterfield Overview Michael Collins • Overview • Leading Bank in Attractive Markets Chairman and Chief Executive Officer • Financials • Strong Capital Generation and Return Michael Schrum • Summary • Efficient, Conservative Balance Sheet Chief Financial Officer • Q&A • Visible Earnings Dan Frumkin Chief Operating Officer Ten International Locations Awards 3

First Quarter 2018 Highlights Core Net Income** • Net income of $44.2 million, or $0.79 per share • Core Net Income** of $45.0 million, or $0.81 per share $45.0 • Return on average common equity of 21.8%; core return on $42.2 $40.7 average tangible common equity** of 24.3% $38.5 $37.5 • Net Interest Margin of 3.05%, cost of deposits of 0.12% • Completed acquisition of Global Trust Solutions business from Deutsche Bank • Announced acquisition of Deutsche Bank's banking and custody business in the Cayman Islands and Channel Islands Q1 Q2 Q3 Q4 Q1 2018 • Common share dividend of $0.38 per share 2017 Core Return on Average Tangible Common Equity** vs. Q4 2017 vs. Q1 2017 Q1 2018 $ % $ % 24.3% Net Interest Income $ 79.9 $ 3.8 3.9 % $ 12.0 14.2 % 23.4% 22.3% 22.2% 21.6% Non-Interest Income 39.8 (2.6) (1.2)% 1.2 5.4 % Prov. for Credit Losses 1.9 (3.4) (228.8)% 1.6 (315.3)% Non-Interest Expenses* (77.8) 3.1 (2.2)% (6.6) (4.8)% Other Gains (Losses) 0.4 3.0 (11.6)% 0.1 181.3 % Net Income $ 44.2 $ 3.9 9.8 % $ 8.3 23.3 % Non-Core Items** 0.8 (1.1) (128.6)% (1.8) (104.5)% Q1 Q2 Q3 Q4 Q1 Core Net Income** $ 45.0 $ 2.8 3.7 % $ 6.5 14.5 % 2018 2017 * Includes income taxes ** See the Appendix for a reconciliation of the non-GAAP measure 4

Financials

Income Statement Net Interest Income Net Interest Margin & Yields Net Interest Income before Provision for Credit Losses - Trend Q1 2018 vs. Q4 2017 Avg. Balance Yield Avg. Balance Yield Cash, S/T Inv. & Repos 0.94 % $ 38.0 0.08% $ 2,173.8 $79.9 Investments 4,574.6 2.54 % (63.5) 0.27% $76.1 Loans (net) 3,861.2 5.31 % 129.5 0.08% Interest Earning Assets 10,609.5 3.22 % 104.0 $67.9 Total Liabilities 10,152.7 (0.17)% 112.6 —% Q1 Q2 Q3 Q4 Q1 Net Interest Margin 3.05 % 0.18% 2018 2017 • Net interest income rose 5.0% in the first quarter of 2018 compared to the prior quarter • Net interest margin increased 18 bps from the previous quarter and 47 bps from the first quarter of 2017 • Yields on investments improved to 2.54% from 2.27% in the previous quarter and 2.17% in the first quarter of 2017 • Loan yields grew by 8 bps compared to the prior quarter due to the December Fed rate increase and growth in loan volume 6

Income Statement Non-Interest Income Non-Interest Income Trend $42.4 vs. Q4 2017 $39.8 $38.5 Q1 2018 $ % Asset management $ 6.4 $ (0.2) Banking 10.9 (1.1) FX Revenue 8.2 (0.6) Trust 10.9 (0.5) Custody and Other 2.2 0.1 Other 1.2 (0.2) Q1 Q2 Q3 Q4 Q1 Total Non-Interest Income $ 39.8 $ (2.6) (6.1)% 2018 2017 • Non-interest income was down compared to the prior quarter but up 3.2% compared to the first quarter of 2017 • Banking and FX Revenue growth were down relative to strong fees generated during holiday seasonal fourth quarter promotions • Diversified fee generating businesses continued to perform well • Fee income ratio of 32.7% remains favorable compared to peers* while moderating as interest income has grown * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks. 7

Income Statement Non-Interest Expenses Non-Interest Expense Trend *** Core Non-Interest Expenses* vs. Q4 2017 Q1 2018 $ % $80.8 Salaries & Benefits** $ 37.0 $ (5.3) 0.3 % $77.8 Technology & Comm. 14.6 0.3 (1.5)% $71.2 Property 5.1 0.6 (3.8)% Professional & O/S Services 8.1 1.4 (1.8)% 63.2% Indirect Taxes 4.9 0.2 2.2 % 65.4% 62.3% Intangible Amortization 1.1 — (9.1)% Marketing 0.9 (0.6) (62.5)% Q1 Q2 Q3 Q4 Q1 Other *** 4.3 0.5 (12.5)% 2017 2018 Total Core Non-Interest Expenses* $ 76.0 $ (2.9) (3.7)% Non-Interest Expenses Core Efficiency Ratio Non-Core Expenses* 1.7 (0.2) (42.4)% Non-Interest Expenses $ 77.8 $ (3.1) (3.8)% • Expenses were down due to lower discretionary compensation and lower defined benefit pension costs in the first quarter of 2018 compared to fourth quarter of 2017 • The first quarter of 2018 included Sarbanes-Oxley-related costs incurred at year-end for sunsetting of initial implementation of necessary systems and processes • Non-core expenses of $1.7 million primarily include $1.6 million related primarily to recent acquisitions • Cost / income ratios expected to normalize in the short term on existing businesses * See the Appendix for a reconciliation of the non-GAAP measure. 8 ** Includes Non-Service Employee Benefits Expense *** Includes Other Non-Interest Expenses and Income Taxes

Capital Requirements and Return Regulatory Capital (Basel III) - Leverage Capital Total Capital Ratio 9.0% 8.1% 19.2% 0.5% 1.4% 8.5% 15.5% 6.7% 14.1% Butterfield - Current US Peer Median * Butterfield Current BMA 2017 Required US Peer Average * TCE/TA TCE/TA Ex Cash • Active capital management remains a focus and contemplates possibility of future acquisitions • Leverage capital down 2 bps in the first quarter of 2018 and remains below peer median • Filing of F-3 provides efficient access to future capital, if desired • Board approved quarterly cash dividend of $0.38 per common share 9 * Includes US banks identified by management as a peer group. Please see the Appendix for a list of these banks.