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Northfield Bancorp, Inc. Announces Fourth Quarter and Year End 2024 Results

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Northfield Bancorp (NFBK) reported Q4 2024 net income of $11.3 million, or $0.27 per diluted share, compared to $6.5 million ($0.16) in Q3 2024 and $8.2 million ($0.19) in Q4 2023. The Q4 results included a $0.06 per share gain from a Staten Island branch sale.

Net interest margin improved to 2.18% from 2.08% in Q3, while deposits (excluding brokered) increased by $81.6 million (8.6% annualized). Loans declined by $36.9 million, with decreases in multifamily and commercial loans. Asset quality remained strong with non-performing loans at 0.51% of total loans.

For full-year 2024, net income was $29.9 million ($0.72 per share), down from $37.7 million ($0.86) in 2023. The company maintained strong liquidity with $683 million in unpledged securities and declared a $0.13 per share dividend payable February 19, 2025.

Northfield Bancorp (NFBK) ha riportato un reddito netto per il Q4 2024 di 11,3 milioni di dollari, o 0,27 dollari per azione diluita, rispetto ai 6,5 milioni di dollari (0,16) nel Q3 2024 e agli 8,2 milioni di dollari (0,19) nel Q4 2023. I risultati del Q4 includevano un guadagno di 0,06 dollari per azione derivante dalla vendita di una filiale a Staten Island.

Il margine di interesse netto è migliorato al 2,18% rispetto al 2,08% nel Q3, mentre i depositi (escludendo quelli intermediati) sono aumentati di 81,6 milioni di dollari (8,6% annualizzato). I prestiti sono diminuiti di 36,9 milioni di dollari, con riduzioni nei prestiti multifamiliari e commerciali. La qualità degli attivi è rimasta solida, con prestiti non performanti allo 0,51% del totale dei prestiti.

Per l'intero anno 2024, il reddito netto è stato di 29,9 milioni di dollari (0,72 dollari per azione), in calo rispetto ai 37,7 milioni di dollari (0,86) nel 2023. L'azienda ha mantenuto una solida liquidità con 683 milioni di dollari in titoli non impegnati e ha dichiarato un dividendo di 0,13 dollari per azione che sarà pagato il 19 febbraio 2025.

Northfield Bancorp (NFBK) informó un ingreso neto de $11.3 millones para el Q4 2024, o $0.27 por acción diluida, en comparación con $6.5 millones ($0.16) en el Q3 2024 y $8.2 millones ($0.19) en el Q4 2023. Los resultados del Q4 incluyeron una ganancia de $0.06 por acción de la venta de una sucursal en Staten Island.

El margen de interés neto mejoró al 2.18% desde el 2.08% en el Q3, mientras que los depósitos (excluyendo los intermediados) aumentaron en $81.6 millones (8.6% anualizado). Los préstamos disminuyeron en $36.9 millones, con caídas en los préstamos multifamiliares y comerciales. La calidad de los activos se mantuvo sólida, con préstamos no productivos representando el 0.51% del total de préstamos.

Para el año completo 2024, el ingreso neto fue de $29.9 millones ($0.72 por acción), por debajo de $37.7 millones ($0.86) en 2023. La empresa mantuvo una sólida liquidez con $683 millones en valores no comprometidos y declaró un dividendo de $0.13 por acción que se pagará el 19 de febrero de 2025.

노스필드 뱅콥(NFBK)는 2024년 4분기 순이익이 1,130만 달러, 주당 0.27달러로 보고했다고 발표했습니다. 이는 2024년 3분기의 650만 달러(0.16달러)와 2023년 4분기의 820만 달러(0.19달러)와 비교되는 수치입니다. 4분기의 결과에는 스태튼 아일랜드 지점 매각으로 인한 주당 0.06달러의 이익이 포함되었습니다.

순이자 마진은 3분기의 2.08%에서 2.18%로 개선되었으며, (중개된 예금을 제외한) 예금은 8.6% 연율화로 8,160만 달러 증가했습니다. 대출은 3,690만 달러 감소하였으며, 다가구 및 상업 대출에서 감소가 있었습니다. 자산 품질은 비수익 대출이 총 대출의 0.51%를 차지하며 견고하게 유지되었습니다.

2024년 전체 연도 순이익은 2,990만 달러(주당 0.72달러)로, 2023년의 3,770만 달러(0.86달러)에서 감소했습니다. 회사는 6억 8,300만 달러의 미담보 증권으로 강력한 유동성을 유지하고 있으며, 2025년 2월 19일 지급될 주당 0.13달러의 배당금을 선언했습니다.

Northfield Bancorp (NFBK) a annoncé un résultat net de 11,3 millions de dollars pour le T4 2024, soit 0,27 dollar par action diluée, contre 6,5 millions de dollars (0,16) au T3 2024 et 8,2 millions de dollars (0,19) au T4 2023. Les résultats du T4 comprenaient un gain de 0,06 dollar par action provenant de la vente d'une succursale à Staten Island.

La marge d'intérêt nette s'est améliorée à 2,18 % contre 2,08 % au T3, tandis que les dépôts (hors intermédiaires) ont augmenté de 81,6 millions de dollars (8,6 % annualisé). Les prêts ont diminué de 36,9 millions de dollars, avec des baisses dans les prêts multifamiliaux et commerciaux. La qualité des actifs est restée solide avec des prêts non performants représentant 0,51 % du total des prêts.

Pour l'année complète 2024, le résultat net s'élevait à 29,9 millions de dollars (0,72 dollar par action), en baisse par rapport à 37,7 millions de dollars (0,86) en 2023. L'entreprise a maintenu une forte liquidité avec 683 millions de dollars en titres non engagés et a déclaré un dividende de 0,13 dollar par action, payable le 19 février 2025.

Northfield Bancorp (NFBK) berichtete für das 4. Quartal 2024 einen Nettogewinn von 11,3 Millionen Dollar, oder 0,27 Dollar pro verwässerter Aktie, im Vergleich zu 6,5 Millionen Dollar (0,16) im 3. Quartal 2024 und 8,2 Millionen Dollar (0,19) im 4. Quartal 2023. Die Ergebnisse des 4. Quartals beinhalteten einen Gewinn von 0,06 Dollar pro Aktie aus dem Verkauf einer Filiale in Staten Island.

Die Nettozinsspanne verbesserte sich auf 2,18 % von 2,08 % im 3. Quartal, während die Einlagen (ohne vermittelte Einlagen) um 81,6 Millionen Dollar (8,6 % annualisiert) stiegen. Die Kredite gingen um 36,9 Millionen Dollar zurück, wobei Rückgänge bei Wohn- und Gewerbekrediten zu verzeichnen waren. Die Asset-Qualität blieb stark, mit notleidenden Krediten von 0,51 % der gesamten Kredite.

Für das gesamte Jahr 2024 betrug der Nettogewinn 29,9 Millionen Dollar (0,72 Dollar pro Aktie), was einem Rückgang von 37,7 Millionen Dollar (0,86) im Jahr 2023 entspricht. Das Unternehmen behielt eine starke Liquidität mit 683 Millionen Dollar an unbesicherten Wertpapieren und erklärte eine Dividende von 0,13 Dollar pro Aktie, die am 19. Februar 2025 zahlbar ist.

Positive
  • Net income increased to $11.3M in Q4 2024 from $6.5M in Q3 2024
  • Net interest margin improved by 10 basis points to 2.18%
  • Deposits grew by $81.6M (8.6% annualized) in Q4
  • Strong asset quality with non-performing loans at 0.51%
  • Gain of $3.4M from branch sale
Negative
  • Full-year 2024 net income decreased to $29.9M from $37.7M in 2023
  • Loans declined by $36.9M in Q4 2024
  • Net charge-offs increased to $2.0M in Q4 2024 from $1.2M in Q4 2023
  • Net interest income decreased $10.2M (8.2%) for full-year 2024

Insights

NFBK delivered mixed results in Q4 2024, with notable improvements in quarterly performance but showing pressure on full-year metrics. The headline Q4 EPS of $0.27 represents a significant improvement from both the trailing quarter ($0.16) and year-ago period ($0.19), though this includes a $3.4 million ($0.06 per share) one-time gain from a branch sale.

Key positive developments include:

  • Net interest margin expansion of 10 basis points to 2.18%
  • Deposit cost reduction to 1.95% from 2.07% in Q3
  • Strong deposit growth of $81.6 million (8.6% annualized)
  • Robust liquidity position with $683 million in unpledged securities

However, there are some concerning trends:

  • Full-year 2024 earnings declined to $29.9 million from $37.7 million in 2023
  • Loan portfolio contracted by $36.9 million (3.6% annualized)
  • Net interest income for 2024 decreased 8.2% year-over-year

The bank's asset quality metrics remain favorable with non-performing loans at 0.51% of total loans, improving from 0.75% in Q3. The strong liquidity position and improving deposit costs suggest the bank is well-positioned to navigate the current rate environment, though loan growth challenges may persist in the near term.

NOTABLE ITEMS FOR THE QUARTER:

  • DILUTED EARNINGS PER SHARE OF $0.27 FOR THE FOURTH QUARTER OF 2024, COMPARED TO $0.16 FOR THE TRAILING QUARTER, AND $0.19 FOR THE FOURTH QUARTER OF 2023.
    • Fourth Quarter 2024 results included a gain of $0.06 per share on the sale and consolidation of a Staten Island branch in December 2024.
  • NET INTEREST MARGIN INCREASED BY 10 BASIS POINTS TO 2.18% FOR THE CURRENT QUARTER, AS COMPARED TO 2.08% FOR THE TRAILING QUARTER.
  • THE AVERAGE COST OF INTEREST-BEARING LIABILITIES DECREASED 10 BASIS POINTS TO 2.85% FOR THE CURRENT QUARTER AS COMPARED TO 2.95% FOR THE TRAILING QUARTER.
  • DEPOSITS (EXCLUDING BROKERED) INCREASED BY $81.6 MILLION, OR 8.6% ANNUALIZED, COMPARED TO SEPTEMBER 30, 2024, AND INCREASED $96.6 MILLION, OR 2.6%, FROM DECEMBER 31, 2023.
  • COST OF DEPOSITS (EXCLUDING BROKERED) AT DECEMBER 31, 2024 WAS 1.95% AS COMPARED TO 2.07% AT SEPTEMBER 30, 2024.
  • LOANS DECLINED BY $36.9 MILLION, OR 3.6% ON AN ANNUALIZED BASIS, FROM SEPTEMBER 30, 2024, WITH DECREASES IN MULTIFAMILY AND COMMERCIAL AND INDUSTRIAL LOANS, OFFSET BY INCREASES IN COMMERCIAL REAL ESTATE, HOME EQUITY, AND CONSTRUCTION AND LAND LOANS.
  • ASSET QUALITY REMAINS STRONG WITH NON-PERFORMING LOANS TO TOTAL LOANS AT 0.51% COMPARED TO 0.75% AT SEPTEMBER 30, 2024.
  • THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY $683 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $935 MILLION.
  • CASH DIVIDEND OF $0.13 PER SHARE, PAYABLE FEBRUARY 19, 2025, TO STOCKHOLDERS OF RECORD AS OF FEBRUARY 5, 2025.

WOODBRIDGE, N.J., Jan. 22, 2025 (GLOBE NEWSWIRE) -- NORTHFIELD BANCORP, INC. (the “Company”) (Nasdaq:NFBK), the holding company for Northfield Bank, reported net income of $11.3 million, or $0.27 per diluted share, for the quarter ended December 31, 2024, as compared to $6.5 million, or $0.16 per diluted share, for the quarter ended September 30, 2024, and $8.2 million, or $0.19 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, net income totaled $29.9 million, or $0.72 per diluted share, compared to $37.7 million, or $0.86 per diluted share, for the year ended December 31, 2023. For the quarter ended December 31, 2024, net income reflected a $3.4 million, or $0.06 per share, gain on sale of property. The year ended December 31, 2024 also included additional tax expense of $795,000, or $0.02 per share, related to options that expired in June 2024, and severance expense of $683,000, or $0.01 per share, related to staffing realignments. For the year ended December 31, 2023, net income reflected $440,000, or $0.01 per share of severance expense.

Commenting on the quarter and year, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “We delivered solid financial performance for the quarter, increasing our net interest income and net interest margin, prudently managing our operating expenses, maintaining strong asset quality, and managing our strong capital levels. While significant economic and market risks remain, recent decreases in short-term market interest rates, and other factors, should provide our marketplace and the Company with growth opportunities in the new year.”

Mr. Klein concluded, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per share, payable February 19, 2025, to stockholders of record on February 5, 2025.”

Results of Operations

Comparison of Operating Results for the Years Ended December 31, 2024 and 2023

Net income was $29.9 million and $37.7 million for the years ended December 31, 2024 and December 31, 2023, respectively. Significant variances from the prior year are as follows: a $10.2 million decrease in net interest income, a $2.9 million increase in the provision for credit losses on loans, a $4.9 million increase in non-interest income, a $3.1 million increase in non-interest expense, and a $3.5 million decrease in income tax expense.

Net interest income for the year ended December 31, 2024, decreased $10.2 million, or 8.2%, to $114.5 million, from $124.7 million for the year ended December 31, 2023, due to a $39.3 million increase in interest expense, which was partially offset by a $29.1 million increase in interest income. The increase in interest expense was largely driven by the cost of interest-bearing liabilities, which increased by 80 basis points to 2.91% for the year ended December 31, 2024, from 2.11% for the year ended December 31, 2023, driven primarily by a 96 basis point increase in the cost of interest-bearing deposits from 1.61% to 2.57% for the year ended December 31, 2024, and, to a lesser extent, a 27 basis point increase in the cost of borrowings from 3.58% to 3.85% due to rising market interest rates, a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit and a greater reliance on borrowings. The increase in interest expense was also due to a $249.1 million, or 6.2%, increase in the average balance of interest-bearing liabilities, including an increase of $161.2 million in the average balance of interest-bearing deposits and an $87.8 million in the average balance of borrowed funds. The increase in interest income was primarily due to a $151.7 million, or 2.9%, increase in the average balance of interest-earning assets coupled with a 43 basis point increase in yields on interest-earning assets, which increased to 4.36% for the year ended December 31, 2024, from 3.93% for the year ended December 31, 2023, due to the rising rate environment. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of mortgage-backed securities of $149.3 million, the average balance of interest-earning deposits in financial institutions of $91.4 million, and the average balance of other securities of $55.1 million, partially offset by a decrease in the average balance of loans of $141.7 million.

Net interest margin decreased by 25 basis points to 2.10% for the year ended December 31, 2024 from 2.35% for the year ended December 31, 2023. The decrease in net interest margin was primarily due to interest-bearing liabilities repricing faster than interest-earning assets. The net interest margin was negatively affected by approximately 10 basis points due to a $300 million low risk leverage strategy implemented in the first quarter of 2024. In January 2024, the Company borrowed $300 million from the Federal Reserve Bank through the Bank Term Funding Program (“BTFP”) at favorable terms and conditions and invested the proceeds at higher rates. These borrowings were repaid in full as of December 31, 2024. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $1.3 million for both years ended December 31, 2024 and December 31, 2023. Net interest income for the year ended December 31, 2024, included loan prepayment income of $863,000 as compared to $1.6 million for the year ended December 31, 2023.

The provision for credit losses on loans increased by $2.9 million to $4.3 million for the year ended December 31, 2024, compared to $1.4 million for the year ended December 31, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was primarily related to an increase in reserves related to commercial and industrial loans. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our Current Expected Credit Loss (“CECL”) model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial portfolio related to an increase in non-performing loans and higher loan balances in that portfolio. Net charge-offs were $6.6 million for the year ended December 31, 2024, as compared to net charge-offs of $6.4 million for the year ended December 31, 2023, and included charge-offs of $5.5 million and $6.2 million on small business unsecured commercial and industrial loans for the years ended December 31, 2024 and 2023, respectively. Management continues to monitor the small business unsecured commercial and industrial loan portfolio, which totaled $28.9 million at December 31, 2024.

Non-interest income increased $4.9 million, or 41.4%, to $16.8 million for the year ended December 31, 2024, from $11.9 million for the year ended December 31, 2023, primarily due to a $3.4 million gain on sale of property, a $951,000 increase in fees and service charges for customer services, related to an increase in overdraft fees and service charges on deposit accounts, and a $585,000 increase in income on bank owned life insurance.

Non-interest expense increased $3.1 million, or 3.7%, to $86.5 million for the year ended December 31, 2024, compared to $83.5 million for the year ended December 31, 2023. The increase was primarily due to a $2.8 million increase in employee compensation and benefits, primarily attributable to higher salary expense related to annual merit increases and higher medical expense. Partially offsetting the increase was a $461,000 decrease in stock compensation expense related to performance stock awards not expected to vest. Employee compensation and benefits expense also included severance expense of $683,000 for the year ended December 31, 2024, as compared to $440,000 for the year ended December 31, 2023. During the second quarter of 2024, due to current economic conditions, the Company implemented a workforce reduction plan which included modest layoffs and staffing realignments. Additionally, non-interest expense included an $837,000 increase in credit loss expense/(benefit) for off-balance sheet exposure due to a provision of $282,000 recorded during the year ended December 31, 2024, as compared to a benefit of $555,000 for the year ended December 31, 2023. The benefit in the prior year period was attributable to a decrease in the pipeline of loans committed and awaiting closing. Partially offsetting the increases was a $602,000 decrease in advertising expense due to a change in marketing strategy and the timing of specific deposit and lending campaigns.

The Company recorded income tax expense of $10.6 million for the year ended December 31, 2024, compared to $14.1 million for the year ended December 31, 2023, with the decrease due to lower taxable income. The effective tax rate for the year ended December 31, 2024, was 26.1%, compared to 27.2% for the year ended December 31, 2023.

Comparison of Operating Results for the Three Months Ended December 31, 2024 and 2023

Net income was $11.3 million and $8.2 million for the quarters ended December 31, 2024, and December 31, 2023, respectively. Significant variances from the comparable prior year quarter are as follows: a $767,000 increase in net interest income, a $1.7 million increase in the provision for credit losses on loans, a $3.4 million increase in non-interest income, a $158,000 decrease in non-interest expense, and a $398,000 decrease in income tax expense.

Net interest income for the quarter ended December 31, 2024, increased $767,000, or 2.7%, to $29.7 million, from $28.9 million for the quarter ended December 31, 2023, due to a $5.3 million increase in interest income partially offset by a $4.5 million increase in interest expense. The increase in interest income was primarily due to an increase in the average balance of interest earning assets of $138.4 million, or 2.6%, coupled with a 29 basis point increase in the yield on interest-earning assets to 4.39% for the quarter ended December 31, 2024, from 4.10% for the quarter ended December 31, 2023, primarily due to higher yields on loans and securities due to the rising rate environment. The increase in the average balance of interest-earning assets was due to increases in the average balance of mortgage-backed securities of $329.9 million and the average balance of interest-earning deposits in financial institutions of $31.1 million, partially offset by decreases in the average balance of loans outstanding of $166.6 million, the average balance of other securities of $53.7 million, and the average balance of Federal Home Loan Bank of New York (“FHLBNY”) stock of $2.4 million. The increase in interest expense was largely driven by the impact of rising market interest rates and a $165.9 million, or 4.12%, increase in the average balance of interest-bearing liabilities, including a $262.7 million increase in the average balance of interest-bearing deposits, partially offset by a decrease of $96.8 million in the average balance of borrowed funds. The cost of interest-bearing liabilities increased by 33 basis points to 2.85% for the quarter ended December 31, 2024, from 2.52% for the quarter ended December 31, 2023, driven primarily by a 10 basis point increase in the cost of borrowed funds from 3.58% to 3.68%, and a 45 basis point increase in the cost of interest-bearing deposits from 2.16% to 2.61%.

Net interest margin increased by one basis point to 2.18% for the quarter ended December 31, 2024 from 2.17% for the quarter ended December 31, 2023. Net interest income for the quarter ended December 31, 2024, included loan prepayment income of $215,000, as compared to $253,000 for the quarter ended December 31, 2023. The Company accreted interest income related to PCD loans of $568,000 for the quarter ended December 31, 2024, as compared to $330,000 for quarter ended December 31, 2023.

The provision for credit losses on loans increased by $1.7 million to $1.9 million for the quarter ended December 31, 2024, from $271,000 for the quarter ended December 31, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was primarily related to an increase in reserves related to commercial and industrial loans. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our CECL model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial portfolio related to an increase in non-performing loans and higher loan balances in that portfolio. Net charge-offs were $2.0 million for the quarter ended December 31, 2024, compared to net charge-offs of $1.2 million for the quarter ended December 31, 2023, and included $1.6 million and $992,000 in charge-offs on small business unsecured commercial and industrial loans, for the quarters ended December 31, 2024 and 2023, respectively.

Non-interest income increased by $3.4 million, or 93.1%, to $7.0 million for the quarter ended December 31, 2024, from $3.6 million for the quarter ended. The increase was primarily due to a $3.4 million gain on sale of property, and, to a lesser extent, increases of $325,000 of income on bank owned life insurance and $419,000 of other income, primarily higher swap fee income. Partially offsetting the increases, was a decrease of $930,000 in gains on trading securities, net. For the quarter ended December 31, 2024, gains on trading securities, net, were $68,000, compared to gains of $998,000 in the comparable prior year quarter. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

Non-interest expense decreased by $158,000, or 0.8%, to $20.8 million for the quarter ended December 31, 2024, from $21.0 million for the quarter ended December 31, 2023. The decrease was primarily due to a $425,000 decrease in compensation and employee benefits partially offset by a $110,000 increase in the credit loss (benefit)/expense for off-balance sheet exposures, which was due to a benefit of $55,000 recorded during the quarter ended December 31, 2024, compared to a benefit of $165,000 recorded in the prior year quarter.

The Company recorded income tax expense of $2.7 million for the quarter ended December 31, 2024, compared to $3.1 million for the quarter ended December 31, 2023. The effective tax rate for the quarter ended December 31, 2024, was 19.2% compared to 27.2% for quarter ended December 31, 2023.

Comparison of Operating Results for the Three Months Ended December 31, 2024 and September 30, 2024

Net income was $11.3 million and $6.5 million for the quarters ended December 31, 2024 and September 30, 2024, respectively. Significant variances from the prior quarter are as follows: a $1.5 million increase in net interest income, a $600,000 decrease in provision for credit losses on loans, a $3.4 million increase in non-interest income, a $444,000 increase in non-interest expense, and a $310,000 increase in income tax expense.

Net interest income for the quarter ended December 31, 2024 increased by $1.5 million, or 5.2%, to $29.7 million, from $28.2 million for the quarter ended September 30, 2024, due to a $1.1 million decrease in interest expense on deposits and borrowings and a $404,000 increase in interest income. The decrease in interest expense on deposits and borrowings was primarily due to a decrease in the cost of borrowed funds (as discussed further below), partially offset by a $2.0 million, or 0.1%, increase in the average balance of interest-bearing liabilities, which was due to $234.5 million, or 7.5%, increase in the average balance of interest-bearing deposits, partially offset by a decrease of $232.6 million, or 23.1%, in the average balance of borrowed funds. The increase in interest income was primarily due to a one basis point increase in the yield on interest-earning assets and a $21.6 million, or 0.4%, increase in the average balance of interest-earning assets. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of interest-bearing deposits in financial institutions of $104.3 million and in the average balance of mortgage-backed securities of $49.3 million. The increases were partially offset by decreases in the average balance of other securities of $95.9 million, in the average balance of loans outstanding of $35.2 million, and the average balance of FHLBNY stock of $1.0 million.

Net interest margin increased by 10 basis points to 2.18% from 2.08% for the quarter ended September 30, 2024, primarily due to the decrease in the cost of interest-bearing liabilities. The cost of interest-bearing liabilities decreased by 10 basis points to 2.85% for the quarter ended December 31, 2024, from 2.95% for the quarter ended September 30, 2024, driven primarily by lower cost of borrowed funds which decreased by 25 basis points to 3.68% for the quarter ended December 31, 2024, as compared to 3.93% for the quarter ended September 30, 2024, due to the lower interest rate environment. Net interest income for the quarter ended December 31, 2024, included loan prepayment income of $215,000 as compared to $87,000 for the quarter ended September 30, 2024. The Company accreted interest income related to PCD loans of $568,000 for the quarter ended December 31, 2024, as compared to $327,000 for the quarter ended September 30, 2024.

The provision for credit losses on loans decreased by $600,000 to $1.9 million for the quarter ended December 31, 2024, from $2.5 million for the quarter ended September 30, 2024. The decrease in the provision was primarily due to a decrease in loan balances. Net charge-offs were $2.0 million for the quarter ended December 31, 2024, as compared to net charge-offs of $2.1 million for the quarter ended September 30, 2024.

Non-interest income increased by $3.4 million, or 95.8%, to $7.0 million for the quarter ended December 31, 2024, from $3.6 million for the quarter ended September 30, 2024. The increase was primarily due to a $3.4 million gain on sale of property.

Non-interest expense increased by $444,000, or 2.2%, to $20.8 million for the quarter ended December 31, 2024, from $20.4 million for the quarter ended September 30, 2024. The increase was primarily due to a $337,000 increase in compensation and employee benefits, a $223,000 increase in occupancy expense, a $141,000 increase in data processing costs, and a $140,000 increase in other non-interest expense. Partially offsetting the increases was a $181,000 decrease in professional fees and a $206,000 decrease in credit loss expense for off-balance sheet exposures.

The Company recorded income tax expense of $2.7 million for the quarter ended December 31, 2024, compared to $2.4 million for the quarter ended September 30, 2024. The effective tax rate for the quarter ended December 31, 2024, was 19.2% compared to 26.6% for the quarter ended September 30, 2024.

Financial Condition

Total assets increased by $68.0 million, or 1.2%, to $5.67 billion at December 31, 2024, from $5.60 billion at December 31, 2023. The increase was primarily due to an increase in available-for-sale debt securities of $305.4 million, or 38.4%, partially offset by decreases in loans receivable of $181.4 million, or 4.3%, and cash and cash equivalents of $61.8 million, or 26.9%.

Cash and cash equivalents decreased by $61.8 million, or 26.9%, to $167.7 million at December 31, 2024, from $229.5 million at December 31, 2023. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities. During the fourth quarter the Company paid off its borrowings under the BTFP which included $94.5 million at December 31, 2023.

Loans held for investment, net, decreased by $181.4 million to $4.02 billion at December 31, 2024, from $4.20 billion at December 31, 2023, primarily due to a decrease in multifamily loans and commercial real estate loans, partially offset by an increase in home equity and lines of credit, commercial and industrial, and construction and land loans. The Company continues to focus on the credit needs of its customers, and to a lesser extent, the development of new business notwithstanding the uncertain economic environment. Multifamily loans decreased $153.5 million, or 5.6%, to $2.60 billion at December 31, 2024 from $2.75 billion at December 31, 2023, commercial real estate loans decreased $39.8 million, or 4.3%, to $889.8 million at December 31, 2024 from $929.6 million at December 31, 2023, and one-to-four family residential loans decreased $10.6 million, or 6.6%, to $150.2 million at December 31, 2024 from $160.8 million at December 31, 2023. Partially offsetting these decreases were increases in home equity and lines of credit loans of $10.5 million, or 6.4%, to $174.1 million at December 31, 2024 from $163.5 million at December 31, 2023, commercial and industrial loans of $8.2 million, or 5.3%, to $163.4 million at December 31, 2024 from $155.3 million at December 31, 2023, and construction and land loans of $4.9 million, or 15.9%, to $35.9 million at December 31, 2024 from $31.0 million at December 31, 2023.

As of December 31, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 434%. Management believes that Northfield Bank (the “Bank”) has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company's ability to pay dividends, and overall profitability.

Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting increases for rent stabilized multifamily properties. At December 31, 2024, office-related loans represented $184.0 million, or approximately 5% of our total loan portfolio, with an average balance of $1.8 million (although we have originated these types of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 42% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are as follows: 49.9% in New York, 48.6% in New Jersey and 1.5% in Pennsylvania. At December 31, 2024, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $30.0 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At December 31, 2024, multifamily loans that have some form of rent stabilization or rent control totaled approximately $437.7 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%. At December 31, 2024, our largest rent-regulated loan had a principal balance of $16.8 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

PCD loans totaled $9.2 million and $9.9 million at December 31, 2024 and December 31, 2023, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $568,000 and $1.3 million attributable to PCD loans for the quarter and year ended December 31, 2024, respectively, as compared to $330,000 and $1.3 million for the quarter and year ended December 31, 2023, respectively. PCD loans had an allowance for credit losses of approximately $2.9 million at December 31, 2024.

Loan balances are summarized as follows (dollars in thousands):

 December 31, 2024 September 30, 2024 December 31, 2023
Real estate loans:     
Multifamily$2,597,484  $2,640,944  $2,750,996 
Commercial mortgage 889,801   878,173   929,595 
One-to-four family residential mortgage 150,217   149,682   160,824 
Home equity and lines of credit 174,062   171,946   163,520 
Construction and land 35,897   33,024   30,967 
Total real estate loans 3,847,461   3,873,769   4,035,902 
Commercial and industrial loans 163,307   174,253   154,984 
PPP loans 118   160   284 
Other loans 2,165   1,660   2,585 
Total commercial and industrial, PPP, and other loans 165,590   176,073   157,853 
Loans held-for-investment, net (excluding PCD) 4,013,051   4,049,842   4,193,755 
PCD loans 9,173   9,264   9,899 
Total loans held-for-investment, net$4,022,224  $4,059,106  $4,203,654 


The Company’s available-for-sale debt securities portfolio increased by $305.4 million, or 38.4%, to $1.10 billion at December 31, 2024, from $795.5 million at December 31, 2023. The increase was primarily attributable to purchases of securities, partially offset by paydowns, maturities, and calls. At December 31, 2024, $989.0 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $75.3 million in U.S. Government agency securities, $35.8 million in corporate bonds, substantially all of which were considered investment grade, and $685,000 in municipal bonds at December 31, 2024. Gross unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $21.8 million and $400,000, respectively, at December 31, 2024, and $32.5 million and $279,000, respectively, at December 31, 2023.

Equity securities were $14.3 million at December 31, 2024 and $10.6 million at December 31, 2023. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program. The increase in equity securities was primarily due to an increase in money market mutual funds.

Total liabilities increased $62.7 million, or 1.3%, to $4.96 billion at December 31, 2024 as compared to $4.90 billion at December 31, 2023, as the increase in total deposits of $260.0 million was largely offset by a decrease in FHLB advances, other borrowings and securities sold under agreements to repurchase of $192.6 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

Deposits increased $260.0 million, or 6.70%, to $4.14 billion at December 31, 2024, as compared to $3.88 billion at December 31, 2023. Brokered deposits increased by $163.4 million, or 163.4%, which were used as a lower-cost alternative to borrowings. Deposits, excluding brokered deposits, increased $96.6 million, or 2.6%. The increase in deposits, excluding brokered deposits, was attributable to increases of $81.9 million in time deposits and $66.3 million in transaction accounts, partially offset by decreases of $30.0 million in money market accounts and $21.6 million in savings accounts. Estimated gross uninsured deposits at December 31, 2024 were $1.82 billion. This total includes fully collateralized uninsured government deposits and intercompany deposits of $923.8 million, leaving estimated uninsured deposits of approximately $896.5 million, or 21.7%, of total deposits as of December 31, 2024. At December 31, 2023, estimated uninsured deposits totaled $869.9 million, or 22.4% of total deposits.

Deposit account balances are summarized as follows (dollars in thousands):

 December 31, 2024 September 30, 2024 December 31, 2023
Transaction:     
Non-interest bearing checking$706,976  $681,741  $694,903 
Negotiable orders of withdrawal and interest-bearing checking 1,286,154   1,230,176   1,231,943 
Total transaction 1,993,130   1,911,917   1,926,846 
Savings and money market:     
Savings 904,163   911,067   925,744 
Money market 272,145   265,800   302,122 
Brokered money market —   —   50,000 
Total savings 1,176,308   1,176,867   1,277,866 
Certificates of deposit:     
$250,000 and under 580,940   585,606   525,454 
Over $250,000 124,681   119,033   98,269 
Brokered deposits 263,418   82,146   50,000 
Total certificates of deposit 969,039   786,785   673,723 
Total deposits$4,138,477  $3,875,569  $3,878,435 


Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

 December 31, 2024 September 30, 2024 December 31, 2023
      
Business customers$885,769  $869,990  $893,296 
Municipal customers$859,319  $799,249  $768,556 


Borrowed funds decreased to $727.8 million at December 31, 2024, from $920.5 million at December 31, 2023. The decrease was largely due to a decrease of $167.9 million in other borrowings resulting from the maturity and replacement of FRB and FHLB borrowings with lower-cost brokered deposits. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

The following is a table of term borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at December 31, 2024 (dollars in thousands):

Year Amount Weighted Average Rate
2025 $183,184   2.60% 
2026  148,000   4.36% 
2027  173,000   3.19% 
2028  154,288   3.96% 
  $658,472   3.47% 


Total stockholders’ equity increased by $5.3 million to $704.7 million at December 31, 2024, from $699.4 million at December 31, 2023. The increase was attributable to net income of $29.9 million for the year ended December 31, 2024, a $12.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $3.6 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $21.8 million in dividend payments. On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program, which was completed in May 2024, and on June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in August 2024. During the year December 31, 2024, the Company repurchased 1.8 million of its common stock outstanding at an average price of $10.03 for a total of $18.1 million pursuant to the approved stock repurchase programs. As of December 31, 2024, the Company had no outstanding repurchase program.

The Company's most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company's on-hand liquidity ratio as of December 31, 2024 was 17.3%.

The Company had the following primary sources of liquidity at December 31, 2024 (dollars in thousands): 

Cash and cash equivalents(1)$154,701 
Corporate bonds(2)$21,843 
Multifamily loans(2)$934,784 
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2)$661,518 
(1) Excludes $13.0 million of cash at Northfield Bank.  
(2) Represents estimated remaining borrowing potential.


The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At December 31, 2024, the Company and the Bank's estimated CBLR ratios were 12.11% and 12.46%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9.0%.

Asset Quality

The following table details total non-accrual loans (excluding PCD), non-performing loans, non-performing assets, troubled debt restructurings on which interest is accruing, and accruing loans 30 to 89 days delinquent at December 31, 2024, September 30, 2024, and December 31, 2023 (dollars in thousands):

 December 31, 2024 September 30, 2024 December 31, 2023
Non-accrual loans:     
Held-for-investment     
Real estate loans:     
Multifamily$2,609  $2,651  $2,709 
Commercial real estate loans 4,578   4,426   6,491 
One-to-four family residential —   66   104 
Home equity and lines of credit 1,270   1,123   499 
Commercial and industrial 5,807   14,617   305 
Other —   6   7 
Total non-accrual loans 14,264   22,889   10,115 
Loans delinquent 90 days or more and still accruing:     
Held-for-investment     
Real estate loans:     
Multifamily$164  $—  $201 
Commercial real estate loans —   1,161   — 
One-to-four family residential 882   304   406 
Home equity and lines of credit 140   343   711 
Commercial and industrial —   835   — 
Total loans held-for-investment delinquent 90 days or more and still accruing 1,186   2,643   1,318 
Non-performing loans held-for-sale     
Commercial real estate loans 4,397   4,397   — 
Commercial and industrial 500   500   — 
Total non-performing loans held-for-sale 4,897   4,897   — 
Total non-performing loans 20,347   30,429   11,433 
Total non-performing assets$20,347  $30,429  $11,433 
Non-performing loans to total loans 0.51%  0.75%  0.27%
Non-performing assets to total assets 0.36%  0.53%  0.20%
Accruing loans 30-89 days delinquent$9,336  $16,057  $8,683 


The Company's non-performing loans at December 31, 2024 totaled $20.3 million, or 0.51%, of total loans, and include $4.9 million of loans held-for-sale, as compared to $30.4 million, or 0.75%, at September 30, 2024, and $11.4 million, or 0.27%, at December 31, 2023. The $10.1 million decrease in non-performing loans from September 30, 2024, was primarily due to one commercial and industrial relationship which had an outstanding balance of $12.5 million at September 30, 2024, and received a payment of $10.0 million during the fourth quarter of 2024. The remaining $2.5 million balance of this loan was modified during the fourth quarter of 2024 and is expected to be repaid over three years. At December 31, 2024, the $2.5 million modified commercial and industrial loan was current, but remains on non-accrual status.

The $8.9 million increase in non-performing loans at December 31, 2024 as compared to December 31, 2023 was primarily due to an increase in non-performing commercial and industrial loans and an increase in non-performing commercial real estate loans. The increase in non-performing commercial and industrial loans was primarily due to two loans to one borrower totaling $1.5 million which were put on non-accrual status during the fourth quarter of 2024, the aforementioned modified loan of $2.5 million (which is current as of December 31, 2024), and, to a lesser extent, and increase in non-performing unsecured small business commercial and industrial loans.

The increase in non-performing commercial real estate loans was primarily attributable to one loan with a balance of $4.4 million, which was put on non-accrual status during the first quarter of 2024. Based on the results of the impairment analysis for this loan, no impairment reserve was necessary as the loan is adequately covered by collateral (a private residence and retail property, both located in New Jersey), with aggregate appraised values totaling $8.7 million.

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual status totaled $9.3 million, $16.1 million, and $8.7 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at December 31, 2024, September 30, 2024, and December 31, 2023 (dollars in thousands):     

 December 31, 2024 September 30, 2024 December 31, 2023
Held-for-investment     
Real estate loans:     
Multifamily$2,831  $2,259  $740 
Commercial real estate loans 78   5,689   1,010 
One-to-four family residential 2,407   2,286   3,339 
Home equity and lines of credit 1,472   1,369   817 
Commercial and industrial loans 2,545   4,450   2,767 
Other loans 3   4   10 
Total delinquent accruing loans held-for-investment$9,336  $16,057  $8,683 


The increase in multifamily delinquent loans at December 31, 2024, as compared to December 31, 2023, was primarily due to two relationships totaling $2.4 million that became current subsequent to December 31, 2024. The decrease in commercial real estate loan delinquencies at December 31, 2024, as compared to September 30, 2024, was primarily due to two participation loans totaling $5.6 million that matured and the lead bank extended their maturity and they became current during the fourth quarter of 2024.

Management continues to monitor the small business unsecured commercial and industrial loan portfolio which represents the majority of the commercial and industrial delinquencies in the table above. This portfolio totaled $28.9 million, $39.1 million, and $37.4 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

PCD Loans (Held-for-Investment)

The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.2 million at December 31, 2024 and $9.9 million at December 31, 2023) as accruing, even though they may be contractually past due. At December 31, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 23.6% were past due 90 days or more, as compared to 2.9% and 27.1%, respectively, at December 31, 2023.

Our multifamily loan portfolio at December 31, 2024 totaled $2.60 billion, or 65% of our total loan portfolio, of which $437.7 million, or 11%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

 % Rent
Regulated		  Balance % Portfolio
Total NY
Multifamily
Portfolio		 Average
Balance		 Largest Loan LTV*  Debt Service
Coverage Ratio
(DSCR)*		  30-89 Days
Delinquent		 Non-Accrual Special
Mention		 Substandard
 0  $280,851   39.1% $1,161  $16,523   50.8%  1.55x  $423  $517  $—  $1,812 
 >0-10   4,724   0.6   1,575   2,121   51.2   1.34   —   —   —   — 
 >10-20   18,540   2.6   1,426   2,850   49.0   1.49   —   —   1,445   — 
 >20-30   19,472   2.7   2,164   5,480   53.8   1.66   —   —   —   — 
 >30-40   15,077   2.1   1,256   3,063   48.1   1.59   —   —   —   — 
 >40-50   21,680   3.0   1,275   2,723   47.2   1.76   —   —   —   — 
 >50-60   9,375   1.3   1,563   2,327   39.6   2.02   —   —   —   — 
 >60-70   19,080   2.7   3,180   11,261   52.7   1.52   —   —   —   — 
 >70-80   22,282   3.1   2,476   4,895   47.8   1.42   —   —   —   — 
 >80-90   20,670   2.9   1,148   3,137   46.4   1.62   —   —   1,131   — 
 >90-100   286,829   39.9   1,738   16,805   52.3   1.60   450   2,092   1,197   4,436 
 Total  $718,580   100.0% $1,437  $16,805   51.0%  1.58x  $873  $2,609  $3,773  $6,248 


The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

County Balance LTV*  DSCR* 
Bronx $117,670   51.5%  1.61x 
Kings  183,982   51.2%  1.61 
Nassau  2,166   36.0%  1.88 
New York  49,154   47.3%  1.64 
Queens  38,576   44.1%  1.70 
Richmond  28,593   60.2%  1.41 
Westchester  17,588   61.5%  1.37 
Total $437,729   51.2%  1.60x 
         

* Weighted Average

None of the loans that are rent-regulated in New York are interest only. During 2025, 36 loans with an aggregate principal balance of $63.0 million will re-price.

About Northfield Bank

Northfield Bank, founded in 1887, operates 37 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

Forward-Looking Statements: This release may contain certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, competition among depository and other financial institutions, including with respect to fees and interest rates, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers, a potential government shutdown, changes in asset quality, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, cyber security and fraud risks against our information technology and those of our third-party providers and vendors, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, adverse changes in the securities markets, and the effects of the COVID-19 pandemic. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.

(Tables follow)


NORTHFIELD BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts) (unaudited)
 
       At or For the
 At or For the Three Months Ended Year Ended
 December 31, September 30, December 31,
  2024   2023   2024   2024   2023 
Selected Financial Ratios:         
Performance Ratios(1)         
Return on assets (ratio of net income to average total assets) 0.79%  0.59%  0.46%  0.52%  0.68%
Return on equity (ratio of net income to average equity) 6.40   4.75   3.74   4.30   5.45 
Average equity to average total assets 12.28   12.42   12.24   12.14   12.44 
Interest rate spread 1.54   1.58   1.42   1.45   1.82 
Net interest margin 2.18   2.17   2.08   2.10   2.35 
Efficiency ratio(2) 56.75   64.46   64.07   65.90   61.11 
Non-interest expense to average total assets 1.46   1.51   1.43   1.51   1.50 
Non-interest expense to average total interest-earning assets 1.53   1.58   1.50   1.58   1.57 
Average interest-earning assets to average interest-bearing liabilities 129.20   131.09   128.75   128.77   133.01 
Asset Quality Ratios:         
Non-performing assets to total assets 0.36   0.20   0.53   0.36   0.20 
Non-performing loans(3)to total loans(4) 0.51   0.27   0.75   0.51   0.27 
Allowance for credit losses to non-performing loans(5) 227.72   328.30   115.67   227.72   328.30 
Allowance for credit losses to total loans held-for-investment, net(6) 0.87   0.89   0.87   0.87   0.89 


(1) Annualized where appropriate.
(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3) Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
(4) Includes originated loans held-for-investment, PCD loans, acquired loans, and loans held-for-sale.
(5)  Excludes loans held-for-sale.
(6) Includes originated loans held-for-investment, PCD loans, and acquired loans.



NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts) (unaudited)
 
 December 31, 2024 September 30, 2024 December 31, 2023
ASSETS:     
Cash and due from banks$13,043  $14,193  $13,889 
Interest-bearing deposits in other financial institutions 154,701   218,733   215,617 
Total cash and cash equivalents 167,744   232,926   229,506 
Trading securities 13,884   13,759   12,549 
Debt securities available-for-sale, at estimated fair value 1,100,817   1,063,486   795,464 
Debt securities held-to-maturity, at amortized cost 9,303   9,681   9,866 
Equity securities 14,261   10,699   10,629 
Loans held-for-sale 4,897   4,897   — 
Loans held-for-investment, net 4,022,224   4,059,106   4,203,654 
Allowance for credit losses (35,183)  (35,197)  (37,535)
Net loans held-for-investment 3,987,041   4,023,909   4,166,119 
Accrued interest receivable 19,078   19,299   18,491 
Bank-owned life insurance 175,759   174,482   171,543 
Federal Home Loan Bank of New York stock, at cost 35,894   37,269   39,667 
Operating lease right-of-use assets 27,771   28,943   30,202 
Premises and equipment, net 21,985   22,973   24,771 
Goodwill 41,012   41,012   41,012 
Other assets 46,932   47,516   48,577 
Total assets$5,666,378  $5,730,851  $5,598,396 
      
LIABILITIES AND STOCKHOLDERS’ EQUITY:     
LIABILITIES:     
Deposits$4,138,477  $3,875,569  $3,878,435 
Securities sold under agreements to repurchase —   —   25,000 
Federal Home Loan Bank advances and other borrowings 666,402   990,871   834,272 
Subordinated debentures, net of issuance costs 61,442   61,386   61,219 
Lease liabilities 32,209   33,529   35,205 
Advance payments by borrowers for taxes and insurance 24,057   22,492   25,102 
Accrued expenses and other liabilities 39,095   47,440   39,718 
Total liabilities 4,961,682   5,031,287   4,898,951 
      
STOCKHOLDERS’ EQUITY:     
Total stockholders’ equity 704,696   699,564   699,445 
Total liabilities and stockholders’ equity$5,666,378  $5,730,851  $5,598,396 
      
Total shares outstanding 42,903,598   42,904,342   44,524,929 
Tangible book value per share(1)$15.46  $15.35  $14.78 


(1) Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $69, $90, and $154 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and are included in other assets.



NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands, except share and per share amounts) (unaudited)
 
 Three Months Ended Years Ended
 December 31, September 30, December 31,
  2024   2023   2024   2024   2023 
Interest income:         
Loans$45,902  $46,418  $46,016  $183,932  $181,638 
Mortgage-backed securities 9,160   3,538   8,493   29,406   14,708 
Other securities 1,428   1,494   2,684   11,459   5,087 
Federal Home Loan Bank of New York dividends 885   988   914   3,704   3,113 
Deposits in other financial institutions 2,347   2,024   1,211   9,407   4,249 
Total interest income 59,722   54,462   59,318   237,908   208,795 
Interest expense:         
Deposits 22,031   16,835   20,304   82,272   48,753 
Borrowings 7,169   7,873   9,949   37,822   32,055 
Subordinated debt 837   836   836   3,329   3,320 
Total interest expense 30,037   25,544   31,089   123,423   84,128 
Net interest income 29,685   28,918   28,229   114,485   124,667 
Provision for credit losses 1,942   271   2,542   4,281   1,353 
Net interest income after provision for credit losses 27,743   28,647   25,687   110,204   123,314 
Non-interest income:         
Fees and service charges for customer services 1,634   1,473   1,611   6,430   5,479 
Income on bank-owned life insurance 1,277   952   999   4,216   3,631 
Losses on available-for-sale debt securities, net —   —   (7)  (6)  (17)
Gain on trading securities, net 68   998   710   1,665   1,721 
Gain on sale of loans —   —   —   51   134 
Gain on sale of property 3,402   —   —   3,402   — 
Other 623   204   265   1,064   948 
Total non-interest income 7,004   3,627   3,578   16,822   11,896 
Non-interest expense:         
Compensation and employee benefits 11,761   12,186   11,424   49,338   46,496 
Occupancy 3,253   3,227   3,030   13,058   13,259 
Furniture and equipment 436   475   450   1,847   1,868 
Data processing 1,921   1,830   1,780   8,025   8,138 
Professional fees 762   784   943   3,195   3,406 
Advertising 287   337   282   1,569   2,171 
Federal Deposit Insurance Corporation insurance 625   568   626   2,488   2,331 
Credit loss (benefit)/expense for off-balance sheet exposures (55)  (165)  151   282   (555)
Other 1,832   1,738   1,692   6,723   6,336 
Total non-interest expense 20,822   20,980   20,378   86,525   83,450 
Income before income tax expense 13,925   11,294   8,887   40,501   51,760 
Income tax expense 2,674   3,072   2,364   10,556   14,091 
Net income$11,251  $8,222  $6,523  $29,945  $37,669 
Net income per common share:         
Basic$0.28  $0.19  $0.16  $0.72  $0.86 
Diluted$0.27  $0.19  $0.16  $0.72  $0.86 
Basic average shares outstanding 40,889,355   42,704,541   41,028,213   41,567,370   43,560,844 
Diluted average shares outstanding 41,029,275   42,780,195   41,088,637   41,628,660   43,638,616 



NORTHFIELD BANCORP, INC.
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands) (unaudited)
 
 For the Three Months Ended
 December 31, 2024 September 30, 2024 December 31, 2023
 Average
Outstanding
Balance		 Interest Average
Yield/
Rate(1)		 Average
Outstanding
Balance		 Interest Average
Yield/
Rate(1)		 Average
Outstanding
Balance		 Interest Average
Yield/
Rate(1)
Interest-earning assets:                 
Loans(2)$4,044,787  $45,902  4.51% $4,079,974  $46,016   4.49% $4,211,344  $46,418   4.37%
Mortgage-backed securities(3) 950,309   9,160  3.83   901,042   8,493   3.75   620,384   3,538   2.26 
Other securities(3) 177,462   1,428  3.20   273,312   2,684   3.91   231,133   1,494   2.56 
Federal Home Loan Bank of New York stock 37,065   885  9.50   38,044   914   9.56   39,470   988   9.93 
Interest-earning deposits in financial institutions 204,146   2,347  4.57   99,837   1,211   4.83   173,026   2,024   4.64 
Total interest-earning assets 5,413,769   59,722  4.39   5,392,209   59,318   4.38   5,275,357   54,462   4.10 
Non-interest-earning assets 277,067       275,342       255,155     
Total assets$5,690,836      $5,667,551      $5,530,512     
                  
Interest-bearing liabilities:                 
Savings, NOW, and money market accounts$2,424,370  $11,997  1.97% $2,417,725  $12,717   2.09% $2,522,964  $11,214   1.76%
Certificates of deposit 928,658   10,034  4.30   700,763   7,587   4.31   567,356   5,621   3.93 
Total interest-bearing deposits 3,353,028   22,031  2.61   3,118,488   20,304   2.59   3,090,320   16,835   2.16 
Borrowed funds 775,722   7,169  3.68   1,008,338   9,949   3.93   872,756   7,873   3.58 
Subordinated debt 61,406   837  5.42   61,350   836   5.42   61,183   836   5.42 
Total interest-bearing liabilities 4,190,156   30,037  2.85   4,188,176   31,089   2.95   4,024,259   25,544   2.52 
Non-interest bearing deposits 703,886       683,283       717,372     
Accrued expenses and other liabilities 97,918       102,233       101,964     
Total liabilities 4,991,960       4,973,692       4,843,595     
Stockholders' equity 698,876       693,859       686,917     
Total liabilities and stockholders' equity$5,690,836      $5,667,551      $5,530,512     
                  
Net interest income  $29,685      $28,229      $28,918   
Net interest rate spread(4)    1.54%      1.42%      1.58%
Net interest-earning assets(5)$1,223,613      $1,204,033      $1,251,098     
Net interest margin(6)    2.18%      2.08%      2.17%
Average interest-earning assets to interest-bearing liabilities    129.20%      128.75%      131.09%


(1) Average yields and rates are annualized.
(2) Includes non-accruing loans.
(3) Securities available-for-sale and other securities are reported at amortized cost.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.



 For the Years Ended
 December 31, 2024 December 31, 2023
 Average
Outstanding
Balance		 Interest Average
Yield/
Rate		 Average
Outstanding
Balance		 Interest Average
Yield/
Rate
Interest-earning assets:           
Loans(1)$4,106,641  $183,932   4.48% $4,248,355  $181,638   4.28%
Mortgage-backed securities(2) 831,681   29,406   3.54   682,416   14,708   2.16 
Other securities(2) 293,776   11,459   3.90   238,722   5,087   2.13 
Federal Home Loan Bank of New York stock 38,350   3,704   9.66   40,684   3,113   7.65 
Interest-earning deposits in financial institutions 189,379   9,407   4.97   97,975   4,249   4.34 
Total interest-earning assets 5,459,827   237,908   4.36   5,308,152   208,795   3.93 
Non-interest-earning assets 271,162       247,050     
Total assets$5,730,989      $5,555,202     
            
Interest-bearing liabilities:           
Savings, NOW, and money market accounts$2,449,037  $50,228   2.05% $2,463,455  $30,408   1.23%
Certificates of deposit 746,629   32,044   4.29   571,041   18,345   3.21 
Total interest-bearing deposits 3,195,666   82,272   2.57   3,034,496   48,753   1.61 
Borrowed funds 982,994   37,822   3.85   895,229   32,055   3.58 
Subordinated debt 61,322   3,329   5.43   61,169   3,320   5.43 
Total interest-bearing liabilities$4,239,982   123,423   2.91  $3,990,894   84,128   2.11 
Non-interest bearing deposits 694,543       770,939     
Accrued expenses and other liabilities 100,704       102,563     
Total liabilities 5,035,229       4,864,396     
Stockholders' equity 695,760       690,806     
Total liabilities and stockholders' equity$5,730,989      $5,555,202     
            
Net interest income  $114,485      $124,667   
Net interest rate spread(3)     1.45%      1.82%
Net interest-earning assets(4)$1,219,845      $1,317,258     
Net interest margin(5)     2.10%      2.35%
Average interest-earning assets to interest-bearing liabilities     128.77%      133.01%


(1) Includes non-accruing loans.
(2) Securities available-for-sale and other securities are reported at amortized cost.
(3) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.


Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519


FAQ

What was NFBK's earnings per share in Q4 2024?

NFBK reported diluted earnings per share of $0.27 in Q4 2024, compared to $0.16 in Q3 2024 and $0.19 in Q4 2023.

How much did NFBK's deposits grow in Q4 2024?

NFBK's deposits (excluding brokered) increased by $81.6 million, or 8.6% annualized, compared to September 30, 2024.

What is NFBK's dividend payment for February 2025?

NFBK declared a cash dividend of $0.13 per share, payable February 19, 2025, to stockholders of record as of February 5, 2025.

How did NFBK's net interest margin change in Q4 2024?

NFBK's net interest margin increased by 10 basis points to 2.18% in Q4 2024, compared to 2.08% in Q3 2024.

What was NFBK's full-year net income for 2024?

NFBK reported full-year 2024 net income of $29.9 million ($0.72 per diluted share), compared to $37.7 million ($0.86 per diluted share) in 2023.

Stock NFBK logo
Northfield Bancorp, Inc.

NASDAQ:NFBK

NFBK Rankings

#3122 Ranked by Market Cap
#669 Ranked by Dividends

NFBK Latest News

Dec 17, 2024
Steve M. Klein, Chairman and CEO of Northfield Bank, Elected to the Board of Directors of the Federal Home Loan Bank of New York
Oct 23, 2024
Northfield Bancorp, Inc. Announces Third Quarter 2024 Results
Sep 18, 2024
John P. Connors, Jr. Named Chair of the Northfield Bank Foundation
Jul 24, 2024
Northfield Bancorp, Inc. Announces Second Quarter 2024 Results
Jul 16, 2024
Steve M. Klein, President and CEO of Northfield Bank, Elected to the Board of Directors of the Federal Home Loan Bank of New York

NFBK Stock Data

500.91M
37.32M
12.81%
57.58%
0.6%
Banks - Regional
Savings Institution, Federally Chartered
Link
United States of America
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