• Q1 2017 net income of $35.9 million, or $0.65 per share, up $0.84 per share over Q4 2016 and $0.17 per share over Q1 2016.

• Q1 2017 core earnings(1) of $38.5 million up $1.4 million (3.7%) over Q4 2016 and $2.5 million (6.5%) over Q1 2016.

• Q1 2017 core earnings per share(1) of $0.70 per share, up $0.08 over Q4 2016(2) and $0.03 over Q1 2016.

• Net interest margin increased 13 basis points to 2.58% over Q4 2016.

• Board declared a dividend for the quarter ended 31 March 2017 of $0.32 per common share.

Hamilton, Bermuda—25 April 2017: The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the “Bank”) (BSX: NTB.BH; NYSE: NTB) today announced net income for the first quarter ended 31 March 2017 of $35.9 million, an increase of $0.5 million compared to $35.4 million earned in the fourth quarter of 2016 and an increase of $9.1 million compared to $26.8 million earned in the same quarter a year ago.

Core earnings for the first quarter ended 31 March 2017 were $38.5 million, an increase of $1.4 million compared to the prior quarter, and an increase of $2.5 million from the same quarter a year ago.

Michael Collins, Butterfield’s Chief Executive Officer, said, “As shown by our strong results for the first quarter of 2017, we continue to successfully execute our strategy of growing community banking market share while investing in the expansion of our wealth management business. I am pleased with Butterfield’s performance this quarter as it reinforces our ability to produce consistently high risk-adjusted returns relative to our US regional bank peers.

“During the first quarter, we launched our UK residential mortgage business, Butterfield Mortgages Limited (“BML”), following completion of the orderly wind-down of our private banking business in London. BML has retained a highly experienced team of residential mortgage specialists with strong connections in the London real estate market who will continue to assist high net worth families, based in the UK and internationally, with the acquisition of high-end UK properties. From a balance sheet perspective, BML will provide our highly liquid Guernsey bank with low-risk, floating rate Sterling loans to invest its Sterling deposits.

“In February, the Bank completed a well-received secondary offering of common shares. As a result, the Carlyle Group (“Carlyle”) no longer holds any common shares of Butterfield and the Investment Agreement between Butterfield and Carlyle has ceased. Carlyle’s support was instrumental in our success over the last several years as we refocused on the core markets where we have scale. We are pleased that James Burr and David Zwiener, Board members nominated to serve by Carlyle, have agreed to stand for re-election at the next Annual General Meeting to continue their service for another year.

“As evidence of our commitment to a balanced capital return policy, the Board declared a common dividend of $0.32 per common share for Q1 2017. This is three times the quarterly dividend paid to common shareholders for the first quarter of 2016.”

Michael Schrum, Butterfield’s Chief Financial Officer, said, “Butterfield’s solid performance continued in the first quarter of 2017, with year-over-year improvements in both non-interest income and net interest income.

“Net interest income for the quarter rose by $5.6 million over Q1 2016, due primarily to higher interest earned on investments as a result of higher balances in the Bermuda and Cayman portfolios plus increased yields on the investment portfolio. The $4.0 million year-over-year increase in non-interest income is mainly a result of the addition of HSBC Bermuda’s private banking investment management and trust businesses, which drove increases in trust and asset management revenue. In addition, banking fees increased due to revised fee schedules in particular jurisdictions, increased volumes on foreign exchange transactions and increased volumes on credit card transactions.

“The Bank’s investment portfolio increased slightly in Q1 2017 to $4.5 billion, compared to $4.4 billion at the end of Q4 2016. The increase was due primarily to $0.2 billion in assets allocated to the held-to-maturity portfolio through the purchase of US government and federal agency securities. Meanwhile, average deposits of $10.0 billion remained flat as compared to the fourth quarter of 2016.

“Our asset quality continues to be strong, with 94% of the Bank’s investment portfolio invested in A-or-better-rated securities.”

Capital Management

The current total capital ratio as at 31 March 2017 was 17.9% as calculated under Basel III, which was effective for reporting purposes beginning on 1 January 2016. As of 31 December 2016, the Bank reported its total capital ratio under Basel II at 17.6%. Both of these ratios are significantly above regulatory requirements.

The Board remains committed to a balanced capital return policy. The Board declared an interim dividend of $0.32 per common share to be paid on 30 May 2017 to shareholders of record on 15 May 2017.

Share Repurchase Activity

Under the Bank’s share buy-back programmes, there were no shares acquired or purchased for cancellation during the quarter ended 31 March 2017. The programme expired on 31 March 2017.

ANALYSIS AND DISCUSSION OF FIRST QUARTER RESULTS

BALANCE SHEET COMMENTARY AT 31 MARCH 2017 COMPARED WITH 31 DECEMBER 2016

Total Assets

Total assets of the Bank were $10.9 billion at 31 March 2017, down $0.2 billion from 31 December 2016. The Bank maintained a highly liquid position at 31 March 2017, with $5.8 billion of cash and demand deposits with banks and short and long-term investments, excluding held-to-maturity investments, representing 52.9% of total assets, compared with 55.0% at 31 December 2016.

Loans Receivable

The loan portfolio totalled $3.6 billion at 31 March 2017, flat from from year-end 2016. This was principally due to paydowns in commercial lending offset by new residential mortgages loans written.

Allowance for credit losses at 31 March 2017 totalled $43.2 million, a decrease of $1.0 million from year-end 2016. The movement was due to the charge-off of several specific provisions as well as slightly lower general provisioning rates across several jurisdictions.

The loan portfolio represented 32.6% of total assets at 31 March 2017 (31 December 2016: 32.2%), whilst loans as a percentage of customer deposits increased from 35.7% at year-end 2016 to 36.3% at 31 March 2017, both of which are due to a slight decrease in customer deposits.

As at 31 March 2017, the Bank had gross non-accrual loans of $50.1 million, representing 1.4% of total gross loans, a slight increase from the $48.5 million, or 1.3%, of total loans at year-end 2016. The increase reflects was the result of new commercial non-accrual loans of $1.7 million. Net non-accrual loans were $38.9 million, equivalent to 1.1% of net loans, after specific provisions of $11.2 million, resulting in a specific provision coverage ratio of 22.2% compared to 24.2% at 31 December 2016. We continue to engage proactively with our clients who experience financial difficulty.

Other real estate owned (“OREO”) decreased slightly by $0.1 million to $14.1 million for the first quarter ended 31 March 2017 primarily as a result of sales transactions completed in the quarter.

Investment in Securities

The investment portfolio was $4.5 billion at 31 March 2017, compared to $4.4 billion at 31 December 2016. The increased portfolio size was driven principally by a greater allocation of assets to the held-to-maturity portfolio, which increased $0.2 billion through the purchase of US government and federal agency securities early in the first quarter.

The investment portfolio was made up of high quality assets with 94.0% invested in A-or-better-rated securities. The investment yield increased over the previous quarter by 19 basis points to 2.17% at 31 March 2017 as a result of strengthening long-term treasury rates, which particularly impact our floating rate investment portfolio. Total net unrealised losses were $30.3 million, compared to $36.4 million at year-end 2016. The decrease in unrealised losses is attributable largely to a slight decrease in long-term treasury rates in the first three months of 2017. The benchmark US 10-year treasury rate fell to its 52-week low in June 2016, and rebounded to its 52-week high in December 2016 and has settled around year-end levels at 31 March 2017.

Deposits

Average deposits were flat at $10.0 billion in the first quarter of 2017 compared to the fourth quarter of 2016. On a period-end basis, customer deposits decreased $0.2 billion to $9.8 billion from $10.0 billion at year-end 2016.

Average Balance Sheet

Assets Under Administration and Assets Under Management

Total assets under administration for the trust and custody businesses were $91.7 billion and $25.9 billion, respectively, whilst assets under management were $4.6 billion. This compares with $98.0 billion, $24.7 billion and $4.7 billion, respectively, at 31 December 2016. The decreases in the trust assets under administration were due principally to valuation decreases in assets under administration.

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 analysing 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.

Conference Call Information

Butterfield will host a conference call to discuss the Bank’s results on Wednesday 26 April 2017 at 10:00 a.m. Eastern Daylight Time. Callers may access the conference call by dialling +1 (866) 807 9684 (toll-free) or +1 (412) 317 5415 (international) ten minutes prior to the start of the call. 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 thereafter.

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 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.

Forward-Looking Statements:

Certain of the statements made in this Release 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 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 the actual results, performance, capital, ownership or achievements of the Bank 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, 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.

About Butterfield:

Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from six jurisdictions: Bermuda, the Cayman Islands and Guernsey, where our principal banking operations are located; and The Bahamas, Switzerland and the United Kingdom, where we offer specialised financial services. Banking services comprise retail and corporate banking. Wealth management services are composed of trust, private banking, and asset management. In Bermuda and the Cayman Islands, we offer both banking and wealth management. In Guernsey, The Bahamas and Switzerland, we offer wealth management. In the UK, we offer residential property lending. 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.