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Mega Banking Transaction Set to Create US$29 Billion Financial Institution Across Bermuda, Barbados and the Wider Caribbean

TIMES CARIBBEAN | May 28, 2026

In one of the most significant banking transactions in recent Caribbean financial history, The Bank of N.T. Butterfield & Son Limited has announced a definitive agreement to acquire CIBC’s 91.7 percent interest in CIBC Caribbean Bank Limited in a major deal valued at approximately US$1.794 billion.

The transaction, announced on Thursday, May 28, 2026, is expected to bring together two of the region’s most established financial institutions, creating a combined banking and wealth management platform with approximately US$29 billion in assets.

According to the official announcement, Butterfield will acquire CIBC Investments (Cayman) Limited, the holding company for CIBC’s controlling interest in CIBC Caribbean. Following that acquisition, Butterfield is expected to launch a mandatory take-over bid for the remaining 8.3 percent of CIBC Caribbean shares held by minority shareholders, with the objective of securing full ownership, subject to applicable laws and regulatory approvals.

The total purchase price includes US$1.091 billion in cash and US$703 million in Butterfield shares, representing a combined offer of US$1.14 per CIBC Caribbean share.

A Major Shift in Caribbean Banking

The acquisition is being described as a major strategic move that would unite two full-service banking and wealth management platforms with deep roots in international financial centres and Caribbean markets.

Butterfield said the expanded institution is expected to strengthen corporate, personal, merchant, and wealth management services across the combined customer base. The company also pointed to anticipated improvements in cross-border payment processing, consumer banking, merchant banking, and digital banking infrastructure.

Importantly for customers and employees across the region, Butterfield has stated that it intends to maintain the operational footprints of both organizations, including CIBC Caribbean’s regional headquarters in Barbados.

The bank also said it remains committed to philanthropic, financial education, and sustainability initiatives across the jurisdictions served by both institutions.

Butterfield CEO: Deal Creates Scale and Diversification

Butterfield Chairman and Chief Executive Officer Michael Collins described the proposed acquisition as a major step in the bank’s long-term growth strategy.

“Since Butterfield’s 2016 listing on the NYSE, we have successfully grown and enhanced profitability through bank and trust acquisitions,” Collins said. He added that the deal combines two “storied and complementary banks” with strong local scale and longstanding customer relationships.

Collins said the transaction is expected to offer both scale and diversification, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets.

CIBC Caribbean CEO Mark St. Hill said the combination brings together two institutions with shared values and a strong focus on relationship banking, innovation, and community impact.

“For our clients, employees and communities, this combination brings together two organizations with shared values and a common focus on relationship banking, innovating and community impact,” St. Hill stated.

CIBC President and CEO Harry Culham also praised the CIBC Caribbean team, saying the institution had built a strong client-focused bank across the region.

Minority Shareholders to Receive Equivalent Terms

Under the proposed arrangement, CIBC Caribbean minority shareholders are expected to receive equivalent economic terms as CIBC. They will also have the option to receive up to 100 percent of their consideration in Butterfield shares, allowing them to maintain an investment in the combined company if they choose.

If minority shareholders elect the same mix of cash and shares as CIBC, they are expected to collectively own approximately two percent of Butterfield following completion of the take-over bid.

Financial Highlights of the Deal

The transaction carries several major financial implications.

Butterfield has obtained commitments for US$700 million of Tier 2 capital-qualifying subordinated debt financing, expected to be raised before closing. Following completion, the combined company is expected to maintain capital levels significantly above applicable regulatory thresholds, with a projected Common Equity Tier 1 ratio above 12 percent and total capital above 19 percent at closing.

The transaction is also expected to deliver a 12 percent accretion to GAAP earnings per share in year one, with fully phased-in synergies, excluding integration costs. Butterfield also expects a 15 percent accretion to cash earnings per share and a 10 percent accretion to tangible book value per share.

Pre-tax cost savings are projected to reach an annual run rate of approximately US$49 million by 2030.

Closing Expected in First Half of 2027

The transaction is expected to close in the first half of 2027, pending Butterfield shareholder approval, regulatory approvals, and other customary closing conditions.

Following completion, Butterfield’s ordinary shares will continue to trade on the New York Stock Exchange and the Bermuda Stock Exchange. The company also intends to pursue additional secondary listings on the Barbados Stock Exchange, the Bahamas International Securities Exchange, and the Trinidad and Tobago Stock Exchange, subject to local approvals.

CIBC is expected to own approximately 22 percent of the combined entity after the transaction. Under the shareholder agreement, CIBC will initially have the right to appoint two directors to Butterfield’s Board.

The Bermuda Monetary Authority will remain the consolidated regulatory supervisor of Butterfield across all its jurisdictions, while Butterfield says it will work with relevant authorities to ensure continuity, confidence, and access to financial services.

A Defining Moment for Regional Financial Services

The proposed acquisition marks a defining moment for Caribbean banking, particularly at a time when regional financial institutions are seeking greater scale, improved technology, stronger capital positions, and enhanced competitiveness in a rapidly changing global financial environment.

For CIBC Caribbean customers, the announcement signals a major ownership shift, but Butterfield has emphasized continuity, customer service, and long-term investment across the region.

For Butterfield, the deal represents a bold expansion of its Caribbean footprint and a significant move toward becoming one of the most influential independent banking and wealth management institutions operating across the region.

Subject to approvals, the transaction is poised to reshape the Caribbean banking landscape in 2027 and beyond.