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*** For Immediate Release *** Butterfield Reports 2011 Net Income of $40.5 Million
Hamilton, Bermuda 29 February 2012: The Bank of N.T. Butterfield & Son Limited (Butterfield, Group or the Bank) today announced net income for the full year ended 31 December 2011 of $40.5 million compared to a reported loss of $207.6 million in 2010. After deduction of dividends ($19.3 million) and the guarantee fee ($2.0 million) on Preference Shares, the net income available to Common Shareholders was $19.2 million ($0.03 per Share) in 2011 compared to a reported loss of $225.6 million ($0.47 per Share) in 2010. During 2011, the Bank continued to build on its core infrastructure, made progress in rightsizing the cost base, and generated revenue growth of 9.8%. Contributing to the revenue growth was the 19.4% increase in net interest income before credit losses, achieved via more effective deployment of liquidity, combined with disciplined deposit pricing. During 2011, the Bank continued to focus on expense management primarily by enhancing operational efficiency through streamlining the organisational structure, which resulted in $7.9 million one-off staff costs incurred in 2011. Excluding the one-off costs incurred in 2011 and 2010, the Banks operating costs decreased by $1.4 million. However, these improvements were partially offset by declines in non-interest income as the recessionary environment continued to cause declines in transaction volumes. In late 2011, the Bank completed a three-year project to convert its core banking systems in Bermuda and the Cayman Islands to a new Oracle platform managed by HP. The new systems replace software that was beyond its service life and provide the Bank with a state-of-the-art platform. The new systems allow the Bank to improve stability, risk management, efficiency and customer service. The Bank continues to implement improvements to the systems and thanks its customers for their understanding during the conversion process. The Bank maintains a strong capital position relative to industry norms. At 31 December 2011, Butterfield had a total capital ratio of 23.5% and a tier 1 capital ratio of 17.7%. Its ratio of tangible common equity to tangible assets of 6.6% and tangible total equity ratio of 8.9% reflect the strength of the Balance Sheet. Bradford Kopp, Butterfields President & Chief Executive Officer, said, The Bank generated respectable levels of profit in each fiscal quarter, contributing to net income for the year of $40.5 million. Although, by historical standards, that level of annual income is modest for Butterfield, when viewed against the backdrop of ongoing economic dislocation and low interest rates in our key markets, it is a positive achievement. Our income was driven by the successful implementation of our strategy to improve operating efficiencies, strengthen credit quality and expand our interest margins.

2 Mr. Kopp continued, We saw notable improvements in the overall performance of our lending business in 2011, even as we experienced increases in delinquencies on personal loans, credit cards and residential mortgages of a magnitude commensurate with general economic difficulties. By taking advantage of opportunities in under-served sectors of the UK and Guernsey loan market, and the extension of additional credit facilities to the Government of Bermuda, the Bank grew the loan portfolio during the year, whilst reducing the overall percentage of non-accrual loans on our books. Brad Rowse, Butterfields Chief Financial Officer, said, In late 2010, the Bank revised its investment strategy in an effort to improve returns and largely implemented that strategy during 2011. Based on the provision of improved modelling and analytics, we were able to more effectively match the durations of our deposits against investments for improved yield, without taking on excess risk. As part of this strategy, the Bank is now holding certain securitiesissued primarily by US government agenciesin a Held To Maturity (HTM) portfolio. These investments, combined with deposit pricing discipline, resulted in an increase in net interest income of more than 19%. The Board declared $4.0 million of quarterly dividends on the Banks 8% Non-Cumulative Perpetual Voting Preference Shares (Preference Shares) to be paid on 15 March 2012 to Preference Shareholders of record on 1 March 2012. No Common dividend was declared. In 2010 the Bank evaluated its performance on a reported as well as on a normalised basis. In 2011, the Bank believes its reported results better reflect normal, ongoing operations. Net income for 2011 increased by $25.7 million from $14.8 million normalised in 2010. For the year ending 31 December, the following table states reported earnings for 2011 compared to normalised 2010 earnings: (in $ millions) Non-interest income Net interest income before provision for credit losses Total revenue before provision for credit losses and gains and losses Net gains and losses Provision for credit losses Total revenue Total non-interest expenses Net income before taxes Income tax Net income Dividends and guarantee fee of Preference Shares Net income (loss) / earnings attributable to Common Shareholders Net income (loss) / earnings per Common Share - Basic - Diluted 2011 Reported 135.2 213.7 348.9 4.3 (14.3) 338.9 (298.5) 40.4 0.1 40.5 (21.3) 19.2 0.03 0.03 2010 Normalised 139.6 178.9 318.5 0.0 (10.1) 308.4 (292.0) 16.4 (1.6) 14.8 (18.0) (3.2) (0.01) (0.01) $ change (4.4) 34.8 30.4 4.3 (4.2) 30.5 (6.5) 24.0 1.7 25.7 (3.3) 22.4 0.04 0.04

Total revenue before provisions for credit losses and gains and losses for 2011 was up $30.4 million from 2010 normalised, driven by a $34.8 million increase in net interest income before provisions for credit losses as a result of the efficient deployment of excess liquidity under our new investment strategy, along with disciplined deposit pricing. Total 2011 non-interest income decreased by $4.4 million, primarily attributable to the discontinuation of revenue streams associated with our Hong Kong and Malta businesses that were sold in 2010. Net gains and losses increased by $4.3 million primarily due to: Realised gains on the disposal of US Agency securities of $1.8 million; Realised gains on Subordinated debt repurchased of $1.1 million; Gain realised on the disposal of the Banks equity interest in fund administrator Butterfield Fulcrum Group Limited (BFG) of $3.1 million in the second quarter of 2011; and

3 Equity pick-up loss on affiliates of $1.3 million in the first quarter of 2011. The $4.2 million increase in provisions for credit losses is primarily due to the impact of the continuing economic downturn, especially with respect to the historical non-core private banking business in the United Kingdom. Non-interest expenses increased by $6.5 million, driven mainly by 2011 termination costs incurred and increased consultancy fees on 2011 projects designed to streamline the organisational structure and enhance operational efficiency to yield long-term improvements in operating costs.

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 Preference 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 Tangible total equity ratio Income Statement (in $ millions) Non-interest income Net interest income Other gains(losses) 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 Preference Shares Dividends on Contingent Value Convertible Preference Shares Net earnings / (loss) attributable to Common Shareholders Cash earnings (before amortisation of intangibles) Net earnings / (loss) per common share - Basic - Diluted Adjusted weighted average number of participating shares (thousands) Key Financial Ratios Return on assets Return on Common Shareholders' equity Net interest margin Efficiency ratio Non-Accrual Loans/Gross Loans Non-Performing Assets /Total Assets

As at 31-Dec-11 1,979.5 2,089.7 4,247.3 276.1 8,824.1 7,525.4 267.8 829.7 200.0 629.7 $1.14 $1.05 17.70% 23.50% 6.62% 8.90%

31-Dec-10 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 15.70% 21.60% 5.79% 7.88%

Year ended 31 December 2011 2010 135.2 143.4 213.7 178.9 4.3 (180.5) 353.2 141.8 (14.3) (42.0) 338.9 99.8 298.5 309.4 40.4 (209.6) 0.1 2.0 40.5 (207.6) (18.0) (18.0) (3.3) 19.2 (225.6) 46.3 (202.0) $0.03 $0.03 554,650 $(0.47) $(0.47) 477,225

0.43% 3.03% 2.50% 83.90% 2.84% 1.70%

(2.17%) (44.32%) 2.03% 94.30% 3.88% 1.66%

5 COMMENTARY ON STATEMENT OF OPERATIONS FOR THE YEAR ENDED 31 DECEMBER 2011 (2011) COMPARED WITH YEAR ENDED 31 DECEMBER 2010 (2010) Net Income The Bank recorded net income of $40.5 million for 2011 compared to a net loss of $207.6 million in 2010. The Banks total revenue before gains and losses increased by 19.4% as result of increased investments in loans and higher yielding investments, reduced deposit interest and decreased credit losses required as the Bank anticipated and subsequently provided for its hospitality industry exposure in 2010. Operating expenses decreased by $10.9 million, from $309.4 million in 2010 to $298.5 million in 2011, which reflects the impact of 2010 and early 2011 reduced headcount and enhanced controls on corporate expenditures. Net Interest Income Net interest income before provisions for credit losses increased by $34.8 million to $213.7 million in 2011 due to increased investments in longer duration, low-risk investments, higher levels of lending and disciplined deposit pricing that resulted in a 47 basis point improvement in net interest margin to 2.50%. The decrease in average interest-earning assets of $0.3 billion to $8.5 billion in 2011 was driven by the strategic loss of high-cost deposits which were deployed in lower yielding assets and therefore had a negative impact on the net interest margin. Credit provisions decreased by $27.6 million, from $42.0 million in 2010 to $14.3 million in 2011. The change was largely a reflection of the actions taken in 2010 to mitigate the Banks exposures to the hospitality industry, but also a reflection of the Bank having worked closely with its clients during difficult economic times to establish mutually agreeable and manageable repayment terms on outstanding credit facilities. Non-Interest Income Non-interest income of $135.2 million decreased by 5.7% from $143.4 million in 2010 primarily due to the following: Asset management fees decreased by $1.6 million due to the lost revenue generated by the Hong Kong subsidiary disposed in 2010, which was offset by the increase in fees in 2011 of $0.3 million, attributable to a change in the mix of services favouring higher margin offerings; Banking fees were down 1.9% in 2011 to $33.3 million, compared to $33.9 million in 2010, primarily as a result of reduced volumes; Foreign exchange revenues were down $1.0 million in 2011 due to reduced foreign exchange transaction volumes, in line with the slowing economic conditions; Trust revenues were $0.5 million lower, year on year, due to a one-time fee revenue recorded in 2010; Custody revenues decreased by $1.8 million during the year due to lower transaction volumes in the Banks custody business and a reduction in administered banking mandates; Other non-interest income decreased by $2.6 million due to the write back of unclaimed balances and dividends amounting to $5.8 million in 2010, which was offset by increased equity pick-up income from investment in affiliates.

Non-Interest Expense Total non-interest expenses decreased year on year by $10.9 million, or 3.5%, to $298.5 million as a result of the following:

6 Salaries and other employee benefits of $150.8 million in 2011 represents a decrease of $8.3 million from 2010. Excluding the $12.0 million of non-recurring costs in 2010, salaries and other employee benefits increased by $3.7 million. However, during 2011 further staff reductions and the implementation of our new core banking system in Bermuda and the Cayman Islands resulted in additional one off costs of $7.9 million. The 2011 one off costs are made up of: $3.0 million in overtime and temporary employment services related to the systems implementation projects and $4.9 million in staff termination and redundancy costs. Net of one-off costs, salaries and other employee benefits declined by $4.2 million year over year. Salary cost reductions of $4.1 million, as a result of reduced headcount, which was down 135 from 1,519 at the end of 2010 to 1,384 by 2011, was partially offset by $1.5 million of annual merit increases. A further $7.9 million of savings was realised from reduced staff benefit costs, of which $7.5 million relates to a reduction in post-retirement health care expenses as a result of the changes to the benefit plan made in 2010. These savings were partially offset by a $6.3 million increase in staff incentive expenses, following several years of minimal incentive compensation awards, and also include the amortisation expense related to the previous years stock option and Executive long-term share plan awards; Technology expenses increased by $1.0 million as the new core banking system was implemented in Cayman and Bermuda during the year; Property expenses increased by $1.8 million, attributable to accelerated depreciation on certain premises totalling $1.6 million per year in additional depreciation for 2011; Professional, outside services costs increased by $5.0 million, primarily due to additional expenditures on projects designed to enhance operational efficiency, increases in executive recruitment fees and increased investment advisory costs; Total other expenses decreased by $9.8 million, driven mainly by the 2010 non-recurring fees of $7.4 million in connection with the CIBC liquidity facility, which was cancelled in early 2011.

Gains/Losses Net gains and losses increased by $184.8 million, year on year, to $4.3 million in 2011. Excluding the significant non-recurring transactions recorded in 2010 of $178.7 million ($167.5 million investment losses, $7.4 million subsidiary disposal loss and $3.8 million of write downs on previously capitalised technology expenditures), net gains and losses increased by $6.1 million due to the following: $2.1 million gain realised on the disposal of US agency securities, certificates of deposit and corporate bonds; $1.1 million gain realised on the repurchase of subordinated debt during 2011; Net losses on trading securities of $0.9 million due to market movements on the trading portfolio; Gain realised on the disposal of the Banks equity interest in fund administrator BFG of $3.1 million in the second quarter of 2011; and Equity pick-up loss on affiliates of $1.3 million in the first quarter of 2011.

COMMENTARY ON BALANCE SHEET AT 31 DECEMBER 2011 (2011) COMPARED WITH 31 DECEMBER 2010 (2010) Deposits Average customer balances decreased by $0.4 billion to $7.7 billion at 31 December 2011, primarily due to a strategic decision made in the UK to exit the unprofitable Self Invested Pension Plan (SIPP) deposit business and lower cash balances held in Cayman by institutional hedge fund clients during the year. During 2011, core deposits remained flat. The Banks deposits ended 2011 at $7.5 billion, down from $8.2 billion in 2010.

7 Total Assets The Banks total assets were $8.8 billion at 31 December 2011, down $0.8 billion from 2010, primarily attributable to the maturation and migration of non-core deposits to higher-interest deposit institutions. The Bank maintained a highly liquid position during 2011 with cash and cash equivalents, short and longterm investments representing 46.5% of total assets compared to 52.8% in 2010. In the first quarter of 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; and Restricted demand deposits and term deposits with a maturity date greater than three months being reclassified to short-term investments rather than cash and cash equivalents. Prior periods have been restated accordingly. Loans The loan portfolio increased by $0.2 billion to $4.2 billion, due primarily to increased residential lending to high net worth individuals in Guernsey and United Kingdom and the extension of additional credit facilities to the Government of Bermuda, offset by full settlements and increased pay downs on commercial loans, including real estate, amounting to $20.8 million, received during 2011 as settlement for a commercial mortgage loan balance. Allowance for credit losses at year-end 2011 totalled $61.4 million, a decrease of $5.4 million from 2010. The movement in the allowance for 2011 is the result of partial charge offs of $23.8 million recorded in 2011 offset by year-to-date additional provision charges of $14.3 million and recoveries of previously charged off loan balances of $4.1 million. The loan portfolio represented 48.1% of total assets at the end of 2011, compared to 42.0% at year-end 2010, whilst loans as a percentage of customer deposits increased from approximately 49.6% at year-end 2010 to 57.4% at the end of 2011. Gross of allowance for loan losses, non-accrual loans represented 2.8% of total gross loans at 31 December 2011 compared to 3.9% at year end 2010. Net non-accrual loans were $96.6 million, equivalent to 2.3% of total loans, after specific provisions for such loans of $25.9 million. The decrease of $32.6 million in net non-accrual loans from 2010 relates primarily to settlements received on non-accrual loans, including real estate received on the settlement of a commercial real estate mortgage amounting to $20.8 million and included as Other Real Estate Owned. The Banks gross non-performing asset ratio remained constant at 1.7% in 2011. Investments The investment portfolio decreased by $0.5 billion to $2.1 billion in 2011, primarily due to the sale of the majority of our European exposures in the fourth quarter of 2011 and the purchase of US treasury bills, which are included in the cash and cash equivalents category.

8 JURISDICTIONAL REVIEW OF RESULTS Bermuda Net income of $25.8 million for 2011 represented an improvement of $208.9 million and, excluding significant 2010 non-recurring transactions of $182.8 million, increased by $26.1 million, primarily due to increased investments in loans and higher yielding investments, reduced deposit interest and decreased credit losses required as the Bank anticipated and subsequently provided for its hospitality industry exposure in 2010. Revenue before gains and losses increased year on year by $38.8 million, or 24.4%, from $159.0 million in 2010 to $197.8 million in 2011. This reflects lower fee revenues resulting from a decline in custody fees more than offset by higher net interest income as margins increased by 57 basis points year on year. Credit provisions were $1.2 million in 2011 compared to $25.6 million in 2010, primarily due to additional provisions taken during 2010 relating to the hospitality industry loan portfolio and residential mortgages, but are also a reflection of the Bank having worked closely with its clients during difficult economic times to establish mutually agreeable and manageable repayment terms on outstanding credit facilities. Net interest income before loan loss provisions increased by $18.6 million, due to increased yields on interest-earning assets complemented by lower rates on deposit liabilities. Non-interest income of $67.1 million in 2011 was down 6.0% from 2010, primarily due to the write back of unclaimed balances and dividends of $5.8 million in during 2010 and reduced custody revenues in 2011. Total assets as at 31 December 2011 decreased by 11.8 % to $4.6 billion from 2010, primarily reflecting a decrease in non-core deposits. Client assets under administration ended 2011 at $46.5 billion, up $4.0 billion from $42.5 billion at year-end 2010, whilst assets under management decreased by $0.2 billion from $3.6 billion at year-end 2010 to $3.4 billion in 2011. Cayman Islands Cayman recorded a net income of $11.0 million for 2011, an increase of $15.6 million from 2010, whilst revenue before gains and losses of $64.0 million represented an increase of $6.8 million from 2010. Net interest income before loan loss provisions increased year on year by $8.8 million resulting from widening margins from continued loan growth and investment in higher yielding fixed income securities during the second half of 2011. Loan loss provisions of $4.0 million were consistent with prioryear levels. Non-interest income of $30.7 million in 2011 was down $1.7 million (5.4 %) from 2010 based on reduced fee revenue, primarily from banking services. Non-interest expenses of $55.0 million were $4.8 million above prior-year levels. Butterfield in Cayman converted to a new banking technology platform during the second quarter, including online banking, ATM, merchant and card processing applications. The increase in 2011 expenditures over the prior year was primarily related to that conversion, with salaries and staff benefits reflecting high levels of associated overtime and employment services costs, whilst technology and communications costs reflect higher IT outsourcing costs and depreciation on technology assets. Increases in professional services costs associated with heightened focus on asset and liability management resulted in improved yields from the investment portfolio. Total assets at 31 December 2011 were $2.0 billion, consistent with year-end 2010. Loans increased by $0.1 billion year over year, with commercial loan growth led by several participations, whilst Cayman residential mortgages experienced steady growth. The Banks Cayman business also absorbed the residential mortgage portfolio of the Banks operations in The Bahamas earlier in the year.

9 Client assets under administration ended 2011 at $3.4 billion, down $1.2 billion from $4.6 billion at year-end 2010, whilst assets under management decreased by $0.1 billion from $1.1 billion at year-end 2010 to $1.0 billion in 2011. Guernsey Guernsey recorded net income of $9.4 million for 2011, compared to net income of $6.3 million in 2010, an improvement of $3.1 million, due primarily to increased investment in residential mortgages and higher yielding securities. Revenue before gains and losses was up $4.0 million to $39.4 million in 2011, compared to $35.4 million in 2010. Net interest income increased $6.0 million to $18.4 million in 2011, compared to $12.4 million in 2010, as a result of increased residential lending to high net worth individuals and the purchase of higher-yielding investment assets. Non-interest income decreased $1.3 million year on year, as a result of the loss of two administered bank mandates and lower foreign exchange revenues, compensated in part, by increases in asset management revenues. Non-interest expenses increased by $2.6 million to $30.2 million for the year ended 31 December 2011, due to increases in professional and advisory fees in 2011, in addition to a non-recurring expense recovery in 2010. Total assets at 31 December 2011 of $1.5 billion were $0.1 billion lower than year-end 2010. Client assets under administration ended 2011 at $16.7 billion, up $0.2 billion from $16.5 billion at year-end 2010, whilst assets under management decreased by $0.1 billion from $0.7 billion at year-end 2010 to $0.6 billion in 2011. United Kingdom The UK recorded a net loss of $3.3 million in 2011, compared to net loss of $13.8 million in 2010, an improvement of $10.5 million. Total revenue before gains and losses was $16.9 million, up $4.6 million in 2011, compared to 2010 as a result of increased residential lending and investments in higher yielding securities in 2011. Net interest income before credit losses, at $12.7 million, was up $3.3 million year on year. Provision for credit losses was $6.7 million at 2011, a decrease of $0.4 million compared to 2010. Non-interest income, at $10.9 million, was up $0.9 million from 2010, reflecting increases in other noninterest income and asset management fees. Total non-interest expenses, at $20.3 million, were $4.2 million higher compared to year-end 2010. Total assets stood at $1.0 billion at the end of 2011, compared to $1.1 billion at year-end 2010, with the decrease in customer deposits, reflecting the strategic decision to exit non-core customer segments. Client assets under administration ended 2011 at $1.3 billion, unchanged from year-end 2010, whilst assets under management also remained unchanged year on year at $0.6 billion. Shareholders are invited to hear Brad Rowse, Butterfields Executive Vice President & Chief Financial Officer, provide a detailed review of the Banks results via a recorded webcast available from Thursday, 1 March 2012. 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

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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 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) 298 4758 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