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*** FOR IMMEDIATE RELEASE ***

Butterfield Reports Second Quarter Profit

Hamilton, Bermuda 26 July 2011: The Bank of N.T. Butterfield & Son Limited (Butterfield or the Bank) today reported second quarter net income of $11.8 million, compared to net income of $8.4 million in the first quarter of 2011 and net income of $0.2 million in the second quarter of 2010. Brad Kopp, Butterfields President & Chief Executive Officer, said, We are pleased that Butterfield has delivered a profit for a second consecutive quarter in what continues to be a challenging operating environment. Against a backdrop of economic slowdown in key Butterfield markets and continued low interest rates, the Banks profitability and year-on-year increases in net interest income are good indicators that we are doing the right things to maintain customer loyalty and effectively manage our balance sheet. We continue the difficult work of reducing our cost base. Mr. Kopp continued, Our deposits are stable and our loan portfolio continues to perform well, considering the economic situation. At this time, we have seen no significant increases in delinquencies and the residential mortgage book is holding up. Brad Rowse, Chief Financial Officer, commented on the quarterly results: During the second quarter, we continued to realise the benefits of investing our excess liquidity in higher-yielding, low-risk securities including select US government agencies. Combined with small adjustments to deposit rates during the quarter, addressing prevailing overseas rates and competitive factors locally, our investment strategy delivered an increase in our net interest margin. This drove an increase in net interest income before credit provisions of more than 23% over the same period last year. During the quarter, Butterfield also achieved significant milestones in its programme to deliver new core banking technology and peripheral systems in its two largest jurisdictions. In late April, Cayman Islands operations were migrated to the new operating platform without significant business interruption. The Banks Bermuda operations remain on track for a conversion later this year. During the second quarter, Butterfield completed the sale of its equity interest in fund administrator Butterfield Fulcrum, contributing $3.2 million of quarterly net income. The completion of the sale will trigger a dividend of $0.42 per share to holders of Butterfield Contingent Value Convertible Preference Shares (CVCP Shares), payable on 16 August 2011 to shareholders of record on 26 July 2011. Therefore, managements belief is that there will be no further dividends or distributions made on the CVCP shares. In addition, management believes that it is highly unlikely that there will be any change in the conversion price of the CVCP shares. (The current conversion ratio is one CVCP share to one common share.) Holders of CVCP shares are eligible for downward adjustments of the conversion price contingent on the Bank realising certain recoveries on a pool of specified non-performing loans. The possibility that such recoveries will occur is remote.

2 The Board declared $4.0 million of dividends on the Banks 8% Non-Cumulative Perpetual Voting Preference Shares to be paid on 15 September 2011 to Preference shareholders of record on 1 September 2011. No common dividend was declared. Shareholders equity increased during the first six months of fiscal 2011 by $32 million to $841 million. The ratio of total capital to risk weighted assets (also known as the total capital ratio) was 22.8% at Q2 2011 compared to 21.6% at year-end 2010. The ratio of tangible common equity to tangible assets was 6.2% reflecting the strength of the Banks balance sheet. ANALYSIS AND DISCUSSION OF QUARTERLY RESULTS Q2 2011 Balance Sheet (in $ millions) Cash and cash equivalents Investments Loans, net of allowance for credit losses Premises, equipment and computer software Total assets Total deposits Subordinated capital Shareholders' equity Liquidation preference of Preferred Shares Common equity Key Balance Sheet Ratios Book value per share Tangible book value per share Tier 1 capital ratio Total capital ratio Tangible common equity ratio Income Statement (in $ millions) Non-interest income Net interest income Gains(losses) on investments, including OTTI Total net revenue before provision for credit losses Provision for credit losses Total net revenue after provision for credit losses Total expenses Total net income before taxes Income tax Net income Dividends and guarantee fee of preferred shares Dividends on contingent value convertible preferred shares Net earnings / (loss) attributable to common shareholders Net earnings / (loss) per common share - Basic - Diluted Three months ended 30 June 2011 2010 32.8 37.7 52.8 42.7 85.6 80.4 2.9 3.3 88.5 (2.6) 85.9 (73.7) 12.2 (0.4) 11.8 (4.5) (3.3) 4.0 0.01 0.01 83.7 (7.6) 76.1 (75.6) 0.5 (0.3) 0.2 (4.5) (4.3) (0.01) (0.01) 30 June 2011 2,319.8 2,648.7 4,100.1 265.4 9,542.2 8,244.7 283.0 841.2 200.0 641.2 $1.16 $1.06 16.7% 22.8% 6.19% As at 31 December 2010 2,429.7 2,629.1 4,043.4 262.0 9,623.1 8,228.1 282.8 809.3 200.0 609.3 $1.10 $0.99 15.9% 21.6% 5.79%

Six months ended 30 June 2011 2010 66.5 78.2 104.2 85.5 170.7 163.7 2.1 (169.9) 172.8 (6.4) 166.4 (145.6) 20.8 (0.6) 20.2 (9.0) (3.3) 7.9 0.01 0.01 (6.2) (8.7) (14.9) (163.4) (178.3) 2.1 (176.2) (9.0) (185.2) (0.47) (0.47)

3 Adjusted weighted average number of common shares (thousands) Key Financial Ratios Return on assets Return on Common Shareholders' equity Net interest margin Efficiency ratio 554,531 548,593 554,531 548,593

0.50% 2.53% 2.33% 84.50%

0.01% (3.0%) 1.84% 92.30%

0.43% 2.54% 2.32% 83.60%

(3.68%) (94.1%) 1.87% 98.10%

COMMENTARY ON STATEMENT OF OPERATIONS FOR THE QUARTER ENDED 30 JUNE 2011 COMPARED WITH THE QUARTER ENDED 30 JUNE 2010 Net Income The Bank recorded net income of $11.8 million for the three months ended 30 June 2011 compared to net income of $0.2 million in the prior year. The Banks total revenue before gains and losses and provisions of $85.6 million increased by 6.5% from $80.4 million in Q2 2010, which reflected enhanced net interest income, up $10.1 million, partially offset by lower non-interest income, down $4.9 million year-on-year. Credit provisions decreased by $5 million from $7.6 million in the prior year, to $2.6 million in the current quarter. The change was largely a reflection of the actions taken in 2010 to mitigate the Banks exposures to the hospitality industry. Operating expenses decreased by $1.9 million from $75.6 million in 2010 to $73.7 million in 2011. This primarily reflected the impact of transitional costs in Q2 2010, reduced headcount, down 176 year-onyear, and enhanced controls on corporate expenditures. Operating expenses in the second quarter of 2011 included $0.8 million of one-time personnel costs for severance. Net Interest Income Net interest income before provisions for credit losses increased by 23.7% from $42.7 million in Q2 2010 to $52.8 million in Q2 2011 as net interest margin improved from 184 bps in Q2 2010 to 233 bps in Q2 2011. Improved allocation of investments in the Banks portfolio to include select US government agencies, combined with disciplined deposit pricing drove the change in net interest margin. Non-Interest Income Non-interest income decreased by 12.9%, from $37.7 million in Q2 2010 to $32.8 million in Q2 2011, primarily due to the following: Asset management fees declined by $0.7 million from Q2 2010 levels due to reduced values of assets under management and reduced management fees, particularly in regards to the Banks Money Market Fund; Banking fees were down 12.3% in Q2 2011 at $8.3 million, compared to $9.4 million in Q2 2010, primarily as a result of reduced volumes; Foreign exchange revenues were $1.2 million lower, year on year, on reduced transaction volumes; Trust revenues were $0.3 million lower, year on year due to one-time fee revenue in 2010 of $0.5 million; Custody revenues were $2.7 million, compared to $3.6 million in Q2 2010, down 25.9%

4 principally due to declining assets under administration from administered banking in Guernsey; and In Q2 2011, other non-interest income included: o Gain of $3.2 million on disposal of interest in Butterfield Fulcrum.

Non-Interest Expense Total non-interest expenses decreased year on year by $1.9 million, or 2.5%, to $73.7 million as a result of the following: Costs of salaries and benefits decreased by $1.4 million year on year reflecting reduced headcount offset by an increase of $1.2 million in provision for incentives. Additionally further severance costs totalling $0.8 million were incurred in Q2 2011; Technology expenses increased by $0.2 million as a result of the One Butterfield technology project implementation in Cayman and progress in Bermuda; and Professional, outside services and other expenses combined decreased by $1.4 million as the Bank curtailed consultancy expenditures and continues to focus on securing savings across all operational areas. COMMENTARY ON BALANCE SHEET AT 30 JUNE 2011 COMPARED WITH 31 DECEMBER 2010 Total Assets Total assets of the Bank were $9.5 billion at 30 June 2011, down $0.1 billion from year-end 2010. The Bank maintained a highly liquid position at 30 June 2011 with cash and cash equivalents, short and longterm investments representing 52.4% of total assets, down $85.8 million from $5.1 billion at year-end 2010 to $5 billion at 30 June 2011. In Q1 2011, a change in accounting policy resulted in highly liquid investments with an initial term of less than three months being included in cash and cash equivalents rather than investments. Loans Receivable The loan portfolio increased by $56.7 million to $4.1 billion at 30 June 2011. Allowance for credit losses at Q2 2011 totalled $72.2 million, an increase of $5.5 million from year-end 2010. The movement in the allowance is mainly the result of additional provisions taken during the six months ending 30 June 2011. The loan portfolio represented 43.0% of total assets at the end of Q2 2011, compared to 42.0% at yearend 2010, whilst loans as a percentage of customer deposits increased from approximately 49.6% at year-end 2010 to 50.4% at the end of Q2 2011. As at 30 June 2011, the Bank had net non-accrual loans of $113.4 million, equivalent to 2.77% of total loans, with specific provisions for such loans of $36.4 million. Gross of allowance for loan losses, nonaccrual loans represented 3.59% of total loans at the end of Q2 2011 compared to 3.9% at year-end 2010. Investments The investment portfolio increased by $19.5 million to $2.6 billion as at 30 June 2011, reflecting the recovery of fair values on available for sale securities

5 REVIEW OF RESULTS OF OPERATIONS Bermuda Net income of $6.9 million for Q2 2011 represented an improvement, year on year, of $9.5 million. The primary drivers of the gain were higher net interest income and the gain of $3.2 million on the sale of the Banks equity interest in Butterfield Fulcrum. Revenue before gains and losses and credit provisions increased, year on year, by $4.7 million, or 10.6%, from $43.9 million for Q2 2010 to $48.6 million for Q2 2011. This reflects lower fee revenues resulting from a decline in assets under management more than offset by higher net interest income as margins increased by 49 basis points year on year. Credit provisions were $2.3 million in Q2 2011 compared to $4.4 million in Q2 2010, primarily due to additional provisions taken during the prior year quarter relating to the hospitality industry loan portfolio and residential mortgages. Net interest income before loan loss provisions was $6.7 million higher, year on year, from increased yields on interest earning assets complemented by lower rates on deposit liabilities. Non-interest income of $15.8 million in Q2 2011 was down 11.3% versus Q2 2010 as improvements in asset management and Bank services fees were more than offset by lower foreign exchange and custody revenues. Total assets as at 30 June 2011 decreased by 14.0% to $4.5 billion from year-end 2010, reflecting a decrease in deposit liabilities. Client assets under administration ended the quarter at $40.2 billion, whilst assets under management decreased by 3.5% to $3.5 billion. Cayman Islands The Cayman bank posted net income of $2.6 million for Q2 2011, compared to net income of $0.8 million in Q2 2010, an improvement of $1.7 million. Net interest income before loan loss provisions was $2.1 million ahead of prior-year results on widening margins from continued loan growth and the reinvestment in higher yielding fixed income securities during the second half of 2010. Loan loss provisions of $0.3 million were $2.4 million below prior-year levels. Non-interest income of $7.8 million in Q2 2011 was down $1.3 million (14.4%) on Q2 2010 as card services expenses are now netted against the related income rather than being included within expenses. Net card services revenues were $0.2 million below Q2 2010 results, foreign exchange revenues were $0.1 million below Q2 2010 results, whilst the equity pick-up from investments in affiliates (an insurance company) was $0.3 million below Q2 2010 results. Total revenues of $16.9 million were $3.2 million above Q2 2010 results, primarily due to interest income growth from loans and investments. Loan loss provisioning reflected growth in the loan portfolio in the current year compared to significantly higher loan impairment provisioning in the prior year. Non-interest expenses of $14.3 million were $1.5 million above prior year levels. Butterfield in Cayman implemented its new banking solution, including online banking, ATM, merchant and card processing applications in Q2, a significant milestone in the Groups ongoing investment in IT infrastructure. Increase in Q2 expenditures over the prior year were primarily related to the successful system implementation with salaries and staff benefits reflecting high levels of overtime and employment services costs, whilst technology and communications reflect higher IT outsourcing costs and the commencement of depreciation on our technology assets. Increases in professional services costs associated with heightened focus on asset and liability management were offset by the reallocation of card services expenses referred to above.

6 Total assets at 30 June 2011 were $2.1 billion, up $87 million from year-end 2010, reflecting increased client deposits. Loans increased by $126.8 million from year end, with commercial loan growth led by several large participations, whilst Cayman residential mortgages experienced steady growth. Butterfield in Cayman also absorbed Butterfield Bahamas residential mortgage portfolio in the quarter. Client assets under administration ended the quarter at $4.4 billion, representing a decrease of $162 million from year-end 2010, whilst assets under management remained unchanged at $1.1 billion. Guernsey Net income of $1.8 million was consistent with Q2 2010 net income of $1.8 million. Total revenue after credit losses and gains and losses was up $0.1 million to $9.4 million in Q2 2011, compared to $9.3 million in Q2 2010. Interest income was up $1.2 million to $5.6 million in Q2 2011, compared to $4.4 million in Q2 2010, from loan growth and the purchase of higher-yielding investment assets. Non-interest income decreased $0.8 million year on year due to lower administered banking revenues of $0.3 million, as two mandates were lost, and the decrease in trust revenues of $0.3 million, whilst all other business lines are broadly in line with 2010. Total assets at 30 June 2011 of $1.7 billion, up $103 million, from year-end 2010. Client assets under administration ended the quarter at $18.1 billion, up from $16.5 billion at year-end 2010, reflecting growth in trust assets under administration and custody net asset values. United Kingdom The Bank recorded net income of $0.3 million in Q2 2011, compared to net loss of $0.05 million in Q2 2010. Total revenue before gains and losses of $6.1 million was up $1.4 million in Q2 2011 compared to Q2 2010. Net interest income before credit losses, at $3.2 million, was up $1.0 million year on year. No provision for credit losses was required in Q2 2011. Non-interest income, at $3 million, was down $0.4 million on Q2 2010. Total non-interest expenses, excluding income taxes at $5.7 million, was up $1 million year on year. Total assets stood at $1 billion at end Q2 2011, compared to $1.1 billion at year-end 2010. The decrease is primarily due to reduced investments on a reduction of client deposits based on strict pricing discipline. The loan portfolio remained relatively stable, decreasing by $9.5 million to $405 million at end Q2 2011. Assets under management totalling $0.7 billion, increased by $68 million from year-end 2010, whilst client assets under administration at the end of Q2 2011 amounted to $1.6 billion, an increase of $294 million from year-end 2010.

The Bahamas, Barbados and Switzerland comprise Butterfield's other jurisdictions. The results of operations in those jurisdictions are not highlighted separately in this News Release, but are included in Group results. Shareholders are invited to hear Bradley Rowse, Butterfields Executive Vice President & Chief Financial Officer, provide a detailed review of the Banks quarterly results via a recorded webcast available from Wednesday, 27 July 2011. Please visit the Investor Relations section of the Banks website, www.butterfieldgroup.com, for details. Notes:
Certain statements in this release may be deemed to include forward-looking statements and are based on Managements 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.

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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 Bermudas 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 Group provides private banking, asset management, investment advisory 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. Butterfields 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 Contact: John Maragliano Senior Vice President, Finance The Bank of N.T. Butterfield & Son Limited Phone: (441) 299 3050 Fax: (441) 295 2899 E-mail: john.maragliano@butterfieldgroup.com

Media Relations Contact: Mark Johnson Vice President, Communications, Brand & Public Affairs The Bank of N.T. Butterfield & Son Limited Phone: (441) 299 1624 E-mail: mark.johnson@butterfieldgroup.com