The Bank of NT Butterfield & Son Limited has signed a definitive agreement to acquire CIBC’s 91.7 per cent stake in CIBC Caribbean Bank Limited in a transaction valued at approximately US$1.8 billion.

The acquisition will create a major banking and wealth management platform across international financial centres and key Caribbean markets, with combined assets of roughly US$29 billion. The deal brings together two long-established regional banks with the aim of strengthening scale, diversification and long-term growth.

In a CIBC release on Thursday, the bank said customers can expect expanded corporate, personal and wealth management services, enhanced cross-border payment capabilities, and continued investments in digital banking technology. It also confirmed that CIBC Caribbean’s regional headquarters in Barbados and existing operational footprint across the region will be maintained.

Butterfield’s Chairman and Chief Executive Officer (CEO), Michael Collins, described the deal as a strategic move that combines “two storied and complementary banks” with deep regional ties and strong customer relationships.

“Since Butterfield’s 2016 listing on the NYSE (New York Stock Exchange), we have successfully grown and enhanced profitability through bank and trust acquisitions. This deal combines two storied and complementary banks, with significant local-scale advantages and time-honoured customer relationships in their respective core jurisdictions. The transaction will offer both scale and diversification to the benefit of all stakeholders, positioning Butterfield as a leading independent bank and wealth manager operating across international financial centres and attractive Caribbean markets. I look forward to welcoming our talented new colleagues and valued clients,” Collins said.

CIBC Caribbean CEO Mark St Hill said the merger unites two institutions with shared values and a strong commitment to relationship banking, innovation and community impact.

“We look forward to building on our legacy as the region’s champion in financial services,” he said.

President and CEO of CIBC, Harry Culham, added: “The entire CIBC Caribbean team led by Mark St Hill has built a strong, client-focused bank across the region, and we look forward to realising the strategic benefits of this transaction to deliver more for all stakeholders.”

The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Following completion, CIBC is expected to retain an approximately 22 per cent stake in the combined company and will appoint two directors to Butterfield’s board.

Until close, CIBC Caribbean said it will maintain its day-to-day operations. However, after the acquisition is completed, the combined group will maintain both organisations’ operational footprints, ensuring full continuity for customers and employees.

It added that the combined group intends to support economic growth and development across the region, continuing its commitment to philanthropic, financial education and sustainability initiatives in each of its geographies.