HAMILTON, Bermuda, May 28, 2026, 11:04 ADT
- Butterfield is picking up CIBC’s majority stake in CIBC Caribbean, which brings more scale in Caribbean banking and wealth management.
- CIBC said selling the unit will release capital for North American expansion and add 24 basis points, or 0.24 percentage point, to its core capital ratio.
- The deal faces remaining hurdles, including OKs from Butterfield shareholders and regulators. Closing is expected in the first half of 2027.
The Bank of N.T. Butterfield & Son said it will buy CIBC Caribbean Bank, picking up control in a mix of cash and stock. Butterfield put the value at about $1.8 billion. The combined group would have around $29 billion in assets in Bermuda and Caribbean markets.
CIBC is pushing ahead with the sale as it sharpens its North American focus and Canadian lenders search for growth away from a packed domestic market. The bank said the deal frees up capital for other growth moves and will boost its Common Equity Tier 1 ratio by 24 basis points once it closes.
Butterfield is chasing scale with the deal. CIBC Caribbean has about 2,700 staff and 41 branches and offices across 10 countries, so the Bermuda bank will pick up a bigger footprint in personal and corporate banking and wealth management.
Butterfield said it will pay $1.091 billion in cash and $703 million in Butterfield shares for the deal, which comes out to $1.14 per CIBC Caribbean share and 106% of CIBC Caribbean’s tangible book value as of Jan. 31. The bank said it’s planning a mandatory takeover offer for the other 8.3% of CIBC Caribbean shares still held by minority investors.
CIBC is selling its 91.67% stake for about US$1.6 billion. That breaks down to US$1 billion in cash and Butterfield shares worth US$645 million. After closing, CIBC would own around 22% of Butterfield.
Butterfield CEO Michael Collins said the deal gives the bank “significant local scale advantages.” CIBC Caribbean’s Mark St. Hill mentioned “shared values” and a focus on relationship banking. CIBC CEO Harry Culham said the bank saw “strategic benefits” in the deal. Business Wire
CIBC gets the right to appoint two directors to Butterfield’s board at first, under a shareholder agreement. Butterfield said it plans to seek secondary listings in Barbados, the Bahamas, and Trinidad and Tobago, depending on local rules.
CIBC posted its second-quarter numbers as it wrapped up the sale. The bank put adjusted net income at C$2.47 billion, or C$2.54 a share. Profit from its capital markets business jumped 40% to C$792 million from the same quarter last year.
CIBC said it plans to repurchase up to 30 million common shares, about 3.3% of shares outstanding on April 30, if it gets Toronto Stock Exchange approval. The last buyback took out 20 million shares at an average price of C$129.68, totaling C$2.6 billion.
Butterfield shares traded at $57.65 in New York, up $1.34. CIBC’s U.S.-listed shares moved to $111.93, down $3.50, the latest market figures showed.
Canadian banks are changing their footprint in the Caribbean. Reuters said that after the deal wraps up, only Royal Bank of Canada and Scotiabank would keep a presence there. Scotiabank has also shifted more capital to the North American trade corridor.
Execution is the key risk. The deal still needs the green light from regulators and shareholders. Butterfield pointed to merger risks like integration costs, keeping customers and staff, meeting financing terms, and the possibility that regulators could set conditions that push back closing or cut into projected gains.
Butterfield is guiding to annual pre-tax cost savings around $49 million at full phase-in by 2030, along with higher earnings and accretion to tangible book value. These are still projections. The actual numbers will turn on the deal closing, share price swings and how integration goes across the banks’ different markets.
