www.butterfieldgroup.

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*** FOR IMMEDIATE RELEASE ***

Butterfield Reports Q3 2010 Financial Results

Hamilton, Bermuda—3 November 2010: The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the
“Bank”) today announced a third quarter net loss of $18.6 million compared to net income of $0.2 million
for the second quarter of 2010 and net income of $7.0 million in the third quarter of 2009. On a
normalised basis, net income was $4.9 million for Q3 2010 compared to $2.2 million for Q2 2010 and $5.5
million in Q3 2009.

After adjusting for preference share dividends, the net loss available to common shareholders was $23.1
million resulting in a fully diluted loss of $0.04 per share compared to a diluted loss of $0.01 in Q2 2010
and diluted earnings of $0.02 in Q3 2009.

Brad Kopp, Butterfield’s President & Chief Executive Officer, commented on the Bank’s third quarter
results: “Butterfield remains focused on reducing risk, returning to profitability and delivering sustainable
growth for our shareholders. That focus entails concentrating our financial and management resources in
jurisdictions where we have a meaningful market presence and a depth of local market knowledge.
Consistent with this strategy, the Bank sold its trust, wealth management and advisory businesses in
Hong Kong and its trust operation in Malta in September with a resultant net loss of $7.4 million.
Additionally, continued weakness over the summer months in the hospitality industry has led us to
provide a further $14.2 million of specific allowances for related loan exposures. Although we are not
happy to be taking additional provisions, we do believe that we are positioned to see the cycle through.”

Brad Rowse, Executive Vice President & Chief Financial Officer added, “Although the financial markets
have stabilised in 2010, Banks continue to face difficult conditions as the low interest rate environment
continues, global economic stability remains uncertain, and regulators respond to the global financial
crisis. Against this backdrop, Butterfield is reviewing all aspects of our business to ensure the right
balance between current profitability and future growth. The Bank is well positioned with a strong capital
base and remains focused on the two pillars of our business, community banking and wealth
management. “

At 30 September 2010, Butterfield had a tangible common equity ratio of 6.29%, total capital ratio of
21.6% and tier 1 capital ratio of 15.7%. Additionally, the Bank’s net book value per share was $1.16 per
share at 30 September 2010.

Michael Collins, Senior Executive Vice President, Bermuda commented on Butterfield’s Q3 performance,
saying, “Bermuda’s economy continues to reflect the weakness of tourism and international business still
feeling the effects of an unprecedented global recession. We are well positioned for an economic
recovery as transaction activity has actually increased over the past year and deposit volumes are stable.
However, demand in the hotel and retail sectors has fallen considerably, and we have to accept that
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tourism is gradually transitioning to a more sustainable business model in order to recover the inherent
value in Bermuda’s tourism product. In the first nine months of 2010, we have taken $19.7 million in
credit provisions for our hotel loans and will continue to manage these exposures conservatively as we
complete the de-risking of our balance sheet.”

Normalised Group results

Nine months ended Three months ended

30 September 30 September

2010 2009 (in $ millions) 2010 2009

107.4 106.9 Non-interest income 34.5 34.2
131.8 142.2 Net interest income 46.0 46.9
239.2 249.1 Total revenue before provision for credit losses 80.5 81.1
(5.0) (4.0) Provision for credit losses (1.9) (1.9)
234.2 245.1 Total revenue after provision for credit losses 78.6 79.2

(222.1) (225.1) Total expenses (73.3) (73.1)

12.1 20.0 Total normalised net income before taxes 5.3 6.1
(1.0) (1.4) Income tax (0.4) (0.6)
11.1 18.6 Net normalised income 4.9 5.5
(13.5) (4.9) Dividends and guarantee fee of preferred shares (4.5) (4.9)
Normalised (loss) / earnings attributable to common
(2.4) 13.7 shareholders 0.4 0.6

Normalised (loss) / earnings per common share

(0.01) 0.15 - Basic - -
(0.01) 0.15 - Diluted - -
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Reconciliation of US GAAP results to normalised results

(in $ millions) Three months ended 30 September
2010 2009
Net Diluted Diluted
income EPS Net income EPS
Net (loss) income as reported (18.6) (0.04) 7.0 0.02
Non-core items:
Other gains & losses (1) 7.6 0.01 (3.0) (0.03)
Investments in affiliates 0.4 - 2.9 0.03
Specific provision for loan losses (2) 14.2 0.03 - -
Legal fees pertaining to Liquidity facility 0.4 - - -
Non-recurring organisational change costs (3) 1.5 - - -
Non-recurring taxation credit (0.6) - - -
Transitional Services Agreement - - (1.1) (0.02)
Credit support fees - - (0.3) -
Net normalised income 4.9 - 5.5 -
Transactions that are viewed by Management not to be in the normal course of day to day business and
are unusual in nature are excluded from normalised earnings as they obscure or distort the analysis of
trends.
(1)
Other gains and losses include:

• Net gains of $0.5 million, which primarily comprise seed money invested in Butterfield Select
Funds;

• Adjustment on the previous sale of a Structured Investment Vehicle of $0.4 million and realised
gain of $0.1 million on disposal of fixed income securities;

• Realised loss on the sale of the Bank’s subsidiaries in Hong Kong & Malta of $7.4 million; and

• Net other losses of $0.3 million comprising net gains of $0.7 million in shares of a credit card
company which was off set by the write down of investments in affiliates by $0.8 million and a loss
on cash flow hedges of $0.2 million.
(2)
Specific provisions for loan losses of $14.2 million primarily related to commercial mortgage facilities in
the hospitality industry in Bermuda and The Bahamas as well as private banking exposures in the UK.
(3)
The organisational change costs are non-recurring expenses incurred relating to changes to Executive
management in the quarter and legal fees associated with changes to the capital structure.
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COMMENTARY ON STATEMENT OF OPERATIONS FOR THE QUARTER ENDED 30 SEPTEMBER

2010 (“Q3 2010”) COMPARED WITH QUARTER ENDED 30 SEPTEMBER 2009 (“Q3 2009”)

Net Income

The Bank recorded a net loss of $18.6 million for Q3 2010 compared to a net income of $7.0 million
recorded in Q3 2009.

The Bank’s total revenue before gains and losses of $64.1 million decreased by 17.6% from $77.8 million
in Q3 2009, which was primarily caused by the increase in loan provisions of $14.2 million year on year
which was slightly offset by the increase in non interest income of $1.3 million.

Net Interest Income

Net interest income before provisions for credit losses decreased by 1% year on year from $46.9 million
in Q3 2009 to $46.2 million in Q3 2010.

The reduction of the Bank’s average interest-earning assets by 2.6% from $9.3 billion in Q3 2009 to $9.1
billion in Q3 2010 resulted in a decrease in interest earned of $1.2 million. The decrease in interest
earned more than offset the increase in the net interest margin of $0.5 million, which is as a result of the
net interest margin before credit provisions, at 2%, being up 2 basis points year on year.

The Bank made net provisions for credit losses for Q3 2010 of $16.1 million, compared to $1.9 million in
Q3 2009. The incremental provisions were required for the aforementioned specific reserves pertaining to
the hospitality industry as well as enhancements to general provision levels for our consumer loan
portfolio in Bermuda of $1.1 million following increased delinquencies in Q3 2010.

Non-Interest Income

Non-interest income increased by 4%, from $32.8 million in Q3 2009 to $34.0 million in Q3 2010, primarily
due to the following:

• Asset management revenues decreased by 6% as the net asset values of assets under management
decreased by $0.2 billion from $6.3 billion in Q3 2009 to $6.1 billion in Q3 2010;

• The increase in other non-interest income of $1.5 million primarily relates to reduced equity pick-up
losses from affiliates in Q3 2010; and

• Trust revenues increased by $0.6 million year on year due to new business levels and increased
time-based revenues.

Non-Interest Expense

Total non-interest expenses increased year on year by 3% to $75.4 million in Q3 2010, which relates
primarily to an increase in technology cost and salary expenses. The increase in salary expenses is due
to a once-off reversal of incentive provision in Q3 2009 which was partially off set by reduced salaries and
benefits expenses in Q3 2010. Overall the Bank continues to implement cost savings measures.

Income Taxes

Net income tax for the quarter ended 30 September 2010 was a benefit of $0.2 million compared to an
expense of $0.6 million in Q3 2009. The reduction in the taxation is primarily as a result of a tax benefit
obtained by the UK relating to the increased UK specific loan provisions recorded in Q3 2010.
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COMMENTARY ON BALANCE SHEET FOR THE PERIOD ENDED 30 SEPTEMBER 2010 (“Q3 2010”)
COMPARED WITH YEAR ENDED 31 DECEMBER 2009 (“YEAR END 2009”)

Total Assets

Total assets of the Group stood at $9.4 billion, a decrease of 2% at the end of Q3 2010 compared to year
end 2009. The Bank maintained a highly liquid position at 30 September 2010 with cash and deposits
with banks and investments representing 51% of total assets, unchanged from year end 2009.

Loans Receivable

The loan portfolio decreased by 3% from $4.2 billion at year end 2009 to $4.1 billion at Q3 2010.
Provision for loan allowances at Q3 2010 totalled $94.9 million, a decrease of $35.4 million from year end
2009. The movement in the provision is as a result of the Bank reassessing its hospitality industry loan
portfolio recoverability which primarily has resulted in partial charge offs of $59 million recorded in Q3
2010 which was off set by year to date increase of provision charges of $24.7 million.

The loan portfolio represented 43.8 % of total assets at the end of Q3 2010, compared to 43.9% at year
end 2009, whilst loans as a percentage of customer deposits increased by 2.2% from 49.2% at year end
2009 to 51.4% at the end of Q3 2010.

Non-accrual loans net of specific provisions decreased by 8.7%, which is due to the partial charge off of
three hospitality industry loans. Net non-accrual loans represented 3.9% of net total loans in Q3 2010
compared to 3.2% at year end 2009. Gross of loan provisions, non-accrual loans represented 5.1% of
total loans in Q3 2010 compared to 5.4% at year end 2009.

The ratio of gross non-accrual loans to tangible common equity and provisions for loan losses
(also known as the “Texas ratio”) decreased from 35.3% at 30 June 2010 to 31.4% at 30 September 2010
as a result of the partial charge offs recorded during Q3 2010.

Investments

The investment portfolio decreased by $0.2 billion to $2.7 billion as at the end of Q3 2010, which reflects
the decrease due to the sale of held to maturity securities in Q1 2010 which was partially off set by the
acquisition of $368 million of investment grade US government agency mortgage backed securities and
$175 million of corporate debt securities explicitly guaranteed by Non US governments.

Post-Retirement Benefits

During Q2 2010 the Bank revalued its post-retirement medical benefit obligations which resulted in a
decrease of approximately $27 million in the liability, primarily as a result of changes in demographics and
claim cost development since 2007. In addition, the post-retirement medical benefits were amended
whereby eligibility, benefits and cost sharing were modified for current active employees. The benefits
amendment resulted in a further reduction in the post-retirement medical liability of approximately $41
million.

Benefits paid in the nine-month period ended 30 September 2010 amounted to $2 million. As at 30
September 2010, the Bank's remaining liability for its post-retirement medical benefit plan is $79.1 million.

Shareholders’ Equity

Shareholders’ equity increased in the nine months ended 30 September 2010 by $487 million (137%) to
$842.7 million, primarily reflecting the net proceeds of the capital raise of $521 million, changes to post-
retirement health benefits and improvements in market values of investments which were partially offset
by a net loss for the nine months ending 30 September 2010 of $194.8 million.
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REVIEW OF RESULTS OF OPERATIONS BY SIGNIFICANT BANK OPERATIONS

Bermuda

Net loss of $14.1 million for Q3 2010 represented a decrease year on year of $16.7 million, primarily due
to additional loan loss provisioning relating to hospitality industry loans.

Total revenues before gains and losses of $32 million in Q3 2010 were $10 million below Q3 2009 results
primarily due to the increased specific loan loss provisioning on three hospitality related properties and
the creation of the Consumer loans general provisions. The additional provision charges were partially off
set by an increase in non-interest income for Q3 2010.

Net interest income before loan loss provisions was $0.7 million above prior year levels due to reduced
interest expenditure incurred on deposit liabilities.

Non-interest income of $16.3 million in Q3 2010 was up 7% versus the third quarter of 2009 due to
reduced equity pick-up losses from affiliates.

Total assets at the end of Q3 2010 increased by 6.5% to $4.9 billion from year end 2009 reflecting the net
proceeds from the capital raise.

Client assets under administration increased to $37.9 billion at Q3 2010, whilst assets under
management decreased by 5.1% to $3.7 billion.

Cayman

Net income before gains and losses decreased year on year by $0.5 million to $2.7 million for Q3 2010,
due to lower net interest income earned and increased IT outsourcing costs.

Excluding the $0.3 million gain in the prior year, total revenues of $15.7 million were $0.2 million below
Q3 2009 results, primarily due to decreased net interest income.

Net interest income before loan loss provisions was $0.5 million below prior year levels due to low inter-
bank interest rates on lower client volumes.

Non-interest income of $8.5 million in Q3 2010 was up $0.3 million (3.2%) on Q3 2009 resulting from
increased banking commissions and an increased equity pick-up from Butterfield's investment in Island
Heritage Insurance offset by reduced volumes in foreign exchange commissions and the completion of its
transitional services agreement with its former subsidiary, Butterfield Fulcrum Group (Cayman) Limited in
Q3 2009.

Total assets at the end of Q3 2010 were $1.9 billion, down $665 million from year end 2009, reflecting the
strong hedge fund subscription cash inflow cycle seen prior to the Bank's most recent year end. Loans
increased by $35.1 million over twelve months, with growth in both the personal lending and commercial
loan portfolios and prudent loan loss provisioning.

Client assets under administration ended Q3 2010 at $4.5 billion, representing a decrease of $573 million
from Q3 2009, whilst assets under management declined by $125 million.
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Guernsey

Net income increased by $0.7 million (£0.4 million) to $1.4 million (£0.9 million) in Q3 2010 as total
revenue improved by $0.5 million (£0.3 million) to $8.9 million (£5.6 million) in Q3 2010 compared to $8.4
million (£5.3 million) in Q3 2009.

Net interest income was up $0.2 million (£0.1 million) due to higher spreads on longer duration assets.

Non-interest income increased $0.3 million (£0.2 million) year on year due to increases in trust,
custody, foreign exchange and investment management fees.

Total assets ended Q3 2010 at $1.7 billion (£1.1 billion), up by $0.2 billion (£0.2 billion) from $1.5 billion
(£0.9 billion) at year end 2009, due to growth in customer deposits.

Client assets under administration ended the quarter at $16.8 billion (£10.6 billion), down from $16.9
billion at Q3 2009, reflecting increases in net asset values compensating for a decline in balances
associated with the mandate for one administered banking client coming to an end.

United Kingdom

The Bank recorded a net loss before gains and losses of $1.5 million (net loss of £1.0 million) in Q3 2010,
compared to net income of $0.5 million (£0.3 million) for Q3 2009, as a result of provision for loan losses.

Total revenue before gains and losses of $2.4 million (£1.5 million) was down $3.7 million (£2.2 million) in
Q3 2010 compared to Q3 2009.

Net interest income at $0.2 million (£0.1 million) was down $3.6 million (£2.2 million) year on year, as the
Bank raised specific provisions required against two loan facilities totalling $2.3 million (£1.5 million) in Q3
2010 while in Q3 2009, the Bank was benefiting from a proportion of its debt securities earning higher
interest rates (yield of 1.4% in Q3 2009 versus 0.8% in Q3 2010) that had not reached maturity and
therefore re-priced to reflect the lower Bank of England base rate of 0.5%.

Non-interest income at $2.2 million (£1.4 million) was in line with Q3 2009. Assets under management
increased, from $505 million (£314 million) to $584 million (£372 million), generating additional investment
management fees and significant commission, with this positive variance offset by lower foreign exchange
commission and lending fees.

Total assets stood at $1.2 billion (£0.7 billion) at Q3 2010, compared to $1.3 billion (£0.8 billion) at year
end 2009. The primary asset movement is the decrease in the loan portfolio by $67 million (£34 million),
to $460 million (£293 million) at Q3 2010 from $527 million (£327 million) at year end 2009, as a result of
significant loan repayments.

Assets under management totalled $0.6 billion (£0.4 billion), an increase of $0.1 billion (£0.1 billion)
compared to Q3 2009 as a result of both new client money and portfolio performance, whilst client assets
under administration at Q3 2010 amounted to $1.3 billion (£0.8 billion) compared to $1.2 billion (£0.7
billion) at Q3 2009.

Other

Other jurisdictions comprised Barbados, Switzerland and The Bahamas. The other jurisdictions recorded
a combined net income of $0.3 million for Q3 2010 compared to a net loss of $0.2 million for Q3 2009.
The increase in net income is primarily due to an increase in net interest income.

For full financial results and a detailed review of the Group’s performance, please visit Butterfield’s website,
www.butterfieldgroup.com. Shareholders are invited to hear Brad Rowse, Butterfield’s Chief Financial Officer, provide a
detailed review of the Bank’s quarterly results via a recorded webcast, available beginning tomorrow (Thursday, 4
November 2010) at 12:00 p.m. Atlantic Daylight Time. Please visit the Investor Relations section of the Bank’s website for
details.
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Notes:
Certain statements in this release may be deemed to include “forward-looking statements” and are based on
Management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may
differ materially from those included in these statements due to a variety of factors including worldwide economic
conditions, success in business retention and obtaining new business and other factors.

This release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Securities may not be
offered or sold in the United States absent registration or an applicable exemption from the registration requirements
of the Securities Act and applicable state laws.

The Bank of N.T. Butterfield & Son Limited (“Butterfield”) is Bermuda’s first and largest independent bank, and a
specialist provider of international financial services. The Butterfield Group offers a full range of community banking
services in Bermuda, Barbados and the Cayman Islands, encompassing retail and corporate banking and treasury
activities. In the wealth management area, the Butterfield Group provides private banking, asset management and
personal trust services from its headquarters in Bermuda and subsidiary offices in The Bahamas, the Cayman
Islands, Guernsey, Switzerland and the United Kingdom. Butterfield also provides services to corporate and
institutional clients from offices in Bermuda, The Bahamas, the Cayman Islands and Guernsey, which include asset
management and corporate trust services.

Butterfield is a publicly traded corporation with shares listed on the Bermuda and Cayman Islands stock exchanges.
Butterfield’s share price is published daily in The Royal Gazette (www.theroyalgazette.com) and is also available on
Bloomberg Financial Markets (symbol: NTB BH) and the Bermuda Stock Exchange website (www.bsx.com). Further
details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.

Investor Relations Contacts:

Brad Rowse
Executive Vice President, Chief Financial Officer
The Bank of N.T. Butterfield & Son Limited
Phone : (441) 299 3829
E-mail : bradley.rowse@butterfieldgroup.com
John Maragliano
Senior Vice President, Finance
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 298 4765
E-mail: john.maragliano@butterfieldgroup.com