Butterfield to buy CIBC Caribbean stake in US$1.8 billion regional banking deal

The Bank of N.T. Butterfield & Son Limited has signed a definitive agreement to purchase Canadian Imperial Bank of Commerce’s 91.7 per cent interest in CIBC Caribbean in a transaction valued at just under US$1.8 billion.

The New York Stock Exchange-listed Butterfield said the deal is subject to regulatory clearance and is expected to combine two established Caribbean banking operations with wider capacity, broader diversification and room for scalable growth across their markets.

Michael Collins, Butterfield’s chairman and chief executive officer, said the acquisition would create “a leading community-focused independent banking platform in the region.” He said the combined operation should give customers access to a wider set of financial products and services while supporting long-term economic growth in the jurisdictions where the banks operate.

CIBC Caribbean, which is headquartered in Barbados, is led by chief executive officer Mark L.V. Collins. He said clients are expected to benefit from stronger cross-border payment processing, expanded consumer and merchant banking services, and access to Butterfield’s trust and wealth management offerings. He also said continued spending on technology and digital services would allow the merged group to use the strengths of both institutions, while a larger regional footprint would support community investment.

Michael Schrum, Butterfield’s president and group chief financial officer, said the purchase price is built on an aggregate value of US$1.09 billion in cash and US$703 million in Butterfield shares. The share component is based on Butterfield’s average share price over the previous 10 days, bringing total consideration to slightly below US$1.8 billion.

Under the agreement, approved by the boards of Butterfield and CIBC, Butterfield will acquire CIBC’s stake through CIBC’s existing Cayman-based holding company. The valuation represents about 1.06 times CIBC Caribbean’s tangible book value. As at May 27, 2026, Butterfield’s 10-day New York Stock Exchange volume-weighted average share price was US$55.66.

Butterfield said it will keep both organisations’ operating footprints, including CIBC Caribbean’s regional headquarters in Barbados. The company also committed to retaining CIBC Caribbean staff at closing and said the transaction is not dependent on major cost savings.

Butterfield intends to pursue secondary share listings on the Barbados Stock Exchange, the Bahamas International Securities Exchange, and the Trinidad and Tobago Stock Exchange, subject to local listing and regulatory requirements. The bank expects to close the transaction in the first half of 2027, pending required approvals, a Butterfield shareholder vote on the equity issuance to current CIBC Caribbean shareholders, and other customary conditions.