David Feaster

Timur Braziler

Timothy Switzer

Emily Noelle Lee

William Nance

- The Bank of N.T. Butterfield & Son Limited reported robust capital adequacy as of **June 30, 2025**, with a **Common Equity Tier 1 (CET1) ratio of 26.0%**, **Tier 1 ratio of 26.0%**, and **Total capital ratio of 26.2%**.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:5]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:7]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:9]**  These ratios significantly exceed the company's combined regulatory minimums of **10.0%** for CET1, **11.5%** for Tier 1, and **13.5%** for Total Capital, which include a **3.0%** D-SIB surcharge.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:0]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:5]** 
- The company maintained strong liquidity and leverage positions as of **June 30, 2025**, with a **Liquidity Coverage Ratio (LCR) of 154%** and a **Net Stable Funding Ratio (NSFR) of 148%**, both well above the **100%** minimum requirement, and a **leverage ratio of 7.3%** against a **5.0%** regulatory minimum.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:1]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:5]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:9]** 
- Total capital levels decreased from the second half of 2024 due to the **early redemption of $100 million Tier 2-qualifying subordinated debt in June 2025**.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:5]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:7]** 
- Risk-weighted assets (RWA) decreased by approximately **2.0%** with the adoption of the **new credit risk framework effective January 1, 2025**.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:5]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:7]** **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:19]** 
- Defaulted loans increased in the first half of 2025, primarily driven by two residential mortgage facilities in the Channel Islands and UK segment, partially offset by loan settlements in Bermuda.  **[1653242_0001653242-25-000026_currentpillariiidisclosure.htm:15]**

Bank of N.T. Butterfield & Son (NTB)