The Bank of N.T. Butterfield & Son announced a deal to acquire CIBC's Caribbean franchises for 1.1 times book value and 9 times earnings, roughly doubling the size of its business. The acquisition, highlighted in FPA Queens Road Small Cap Value Fund's second-quarter 2026 investor letter, will provide growth and further consolidate Butterfield's attractive Caribbean markets, though it adds some operational and balance sheet risk. The fund noted that Butterfield remains a well-run banking franchise with an attractive return on equity, and it was pleased to accumulate shares at less than 10 times earnings. As of August 28, 2026, Butterfield's stock closed at approximately $59.30 per share, with a market capitalization of about $2.32 billion. The fund also reported a 27.02% return in the first half of 2026, outperforming its benchmark, and trimmed appreciated technology holdings amid the AI-driven rally.
Canadian Imperial Bank Of CommerceCIBC is the seller of its Caribbean franchises to Butterfield at 1.1x book and 9x earnings, a divestiture whose impact on CIBC is not assessed in the article.
Bank of N.T. Butterfield & Son Ltd
