Northfield Bancorp, Inc. Announces Second Quarter 2024 Results
Northfield Bancorp (NFBK) reported its Q2 2024 results with diluted earnings per share (EPS) of $0.14, down from $0.15 in Q1 2024 and $0.22 in Q2 2023. Net interest income increased by 2.9% QoQ to $28.7 million, while net interest margin expanded to 2.09%. However, deposits excluding brokered decreased by $24 million QoQ. Loan balances declined due to reductions in most categories, despite increases in home equity and construction loans. Asset quality remained strong, with non-performing loans stable at 0.42% of total loans. The company repurchased 988,758 shares, costing $8.7 million, and declared a $0.13 per share dividend payable on August 21, 2024. For the six months ended June 30, 2024, net income was $12.2 million, significantly lower than $21.3 million in the same period last year, mainly due to a 14.4% decrease in net interest income. Higher interest expenses, severance costs, and tax expenses affected overall profitability.
Northfield Bancorp (NFBK) ha riportato i risultati del Q2 2024 con un utile per azione (EPS) diluito di $0,14, in calo rispetto a $0,15 del Q1 2024 e $0,22 del Q2 2023. Il reddito da interessi netti è aumentato del 2,9% rispetto al trimestre precedente, raggiungendo $28,7 milioni, mentre il margine di interesse netto si è ampliato al 2,09%. Tuttavia, i depositi esclusi quelli mediati sono diminuiti di $24 milioni rispetto al trimestre precedente. I saldi dei prestiti sono diminuiti a causa delle riduzioni nella maggior parte delle categorie, nonostante l'aumento dei prestiti per capitale di abitazione e costruzione. La qualità degli attivi è rimasta solida, con prestiti non performanti stabili allo 0,42% del totale dei prestiti. L'azienda ha riacquistato 988.758 azioni, spendendo $8,7 milioni, e ha dichiarato un dividendo di $0,13 per azione, pagabile il 21 agosto 2024. Per i sei mesi terminati il 30 giugno 2024, l'utile netto è stato di $12,2 milioni, significativamente inferiore ai $21,3 milioni dello stesso periodo dell'anno scorso, principalmente a causa di una diminuzione del 14,4% del reddito da interessi netti. Maggiori spese per interessi, costi di liquidazione e spese fiscali hanno influito sulla redditività complessiva.
Northfield Bancorp (NFBK) reportó sus resultados del Q2 2024 con ganancias diluidas por acción (EPS) de $0.14, una disminución desde $0.15 en el Q1 2024 y $0.22 en el Q2 2023. Los ingresos netos por intereses aumentaron un 2.9% en comparación con el trimestre anterior, alcanzando $28.7 millones, mientras que el margen de interés neto se expandió al 2.09%. Sin embargo, los depósitos, excluyendo los intermediados, disminuyeron en $24 millones respecto al trimestre anterior. Los saldos de préstamos cayeron debido a reducciones en la mayoría de las categorías, a pesar de los aumentos en préstamos para capital de vivienda y construcción. La calidad de los activos se mantuvo fuerte, con préstamos no productivos estables en el 0.42% del total de préstamos. La compañía recompró 988,758 acciones, gastando $8.7 millones, y declaró un dividendo de $0.13 por acción que se pagará el 21 de agosto de 2024. Para los seis meses que terminaron el 30 de junio de 2024, el ingreso neto fue de $12.2 millones, significativamente menor a los $21.3 millones del mismo periodo del año pasado, principalmente debido a una disminución del 14.4% en los ingresos netos por intereses. Los mayores gastos por intereses, costos de despido y gastos fiscales afectaron la rentabilidad general.
Northfield Bancorp (NFBK)는 2024년 2분기 결과를 발표하며 희석된 주당순이익(EPS)이 $0.14로, 2024년 1분기의 $0.15 및 2023년 2분기의 $0.22에서 감소했다고 보고했습니다. 순이자 수익은 전분기 대비 2.9% 증가하여 $28.7백만에 달했고, 순이자 마진은 2.09%로 확대되었습니다. 그러나 중개된 예금을 제외한 예금은 전분기 대비 $24백만 감소했습니다. 주택 자산과 건설 대출이 증가했음에도 불구하고 대출 잔액은 대부분의 카테고리에서 감소했습니다. 자산 품질은 강하게 유지되었고, 부실 대출 비율은 전체 대출의 0.42%로 안정적이었습니다. 회사는 988,758주를 재구매하여 $8.7백만을 지출했으며, 2024년 8월 21일에 지급될 주당 $0.13의 배당금을 선언했습니다. 2024년 6월 30일 종료된 6개월 동안의 순수익은 $12.2백만으로, 지난해 같은 기간의 $21.3백만에 비해 크게 감소했으며, 이는 주로 순이자 수익의 14.4% 감소에 기인합니다. 높은 이자 비용, 퇴직 비용 및 세금 비용이 전반적인 수익성에 영향을 미쳤습니다.
Northfield Bancorp (NFBK) a annoncé ses résultats du T2 2024 avec un bénéfice par action (EPS) dilué de 0,14 $, en baisse par rapport à 0,15 $ au T1 2024 et 0,22 $ au T2 2023. Le revenu net d'intérêts a augmenté de 2,9 % par rapport au trimestre précédent, atteignant 28,7 millions de dollars, tandis que la marge d'intérêts nets s'est élargie à 2,09 %. Cependant, les dépôts, excluant ceux intermédiaires, ont diminué de 24 millions de dollars par rapport au trimestre précédent. Les soldes de prêts ont diminué en raison de baisses dans la plupart des catégories, malgré des augmentations dans les prêts sur valeur domiciliaire et de construction. La qualité des actifs est restée solide, avec des prêts non performants stables à 0,42 % du total des prêts. L'entreprise a racheté 988 758 actions pour un coût de 8,7 millions de dollars et a annoncé un dividende de 0,13 $ par action, payable le 21 août 2024. Pour les six mois se terminant le 30 juin 2024, le revenu net s'élevait à 12,2 millions de dollars, ce qui est nettement inférieur aux 21,3 millions de dollars du même période l'année précédente, principalement en raison d'une diminution de 14,4 % des revenus nets d'intérêts. Des charges d'intérêt plus élevées, des coûts de licenciement et des charges fiscales ont affecté la rentabilité globale.
Northfield Bancorp (NFBK) berichtete über die Ergebnisse des Q2 2024 mit einem verwässerten Gewinn pro Aktie (EPS) von $0,14, was einem Rückgang von $0,15 im Q1 2024 und $0,22 im Q2 2023 entspricht. Die Nettozinsüberschüsse stiegen im Quartalsvergleich um 2,9% auf $28,7 Millionen, während die Nettomarge auf 2,09% anstieg. Die Einlagen abzüglich der vermittelten Einlagen sanken jedoch um $24 Millionen im Vergleich zum vorherigen Quartal. Die Kreditsalden gingen aufgrund von Rückgängen in den meisten Kategorien zurück, obwohl es in den Bereichen Eigenheimdarlehen und Baukredite zu Zuwächsen kam. Die Vermögensqualität blieb stark, mit stabilen notleidenden Krediten von 0,42% des gesamten Kreditvolumens. Das Unternehmen hat 988.758 Aktien zurückgekauft, was $8,7 Millionen kostete, und eine Dividende von $0,13 pro Aktie erklärt, die am 21. August 2024 zahlbar ist. Für die sechs Monate bis zum 30. Juni 2024 betrug der Nettogewinn $12,2 Millionen, was erheblich niedriger ist als die $21,3 Millionen im gleichen Zeitraum des Vorjahres, hauptsächlich aufgrund eines Rückgangs von 14,4% im Nettozinsüberschuss. Höhere Zinsaufwendungen, Abfindungskosten und Steueraufwendungen beeinflussten die Gesamtprofitabilität.
- Net interest income increased by 2.9% QoQ to $28.7 million.
- Net interest margin expanded by six basis points to 2.09%.
- Strong liquidity with $622 million in available-for-sale securities and $790 million in loans readily available for pledge.
- Declared a $0.13 per share dividend.
- Diluted EPS decreased to $0.14 from $0.22 YoY.
- Deposits excluding brokered decreased by $24 million QoQ.
- Net income for the six months ended June 30, 2024, fell to $12.2 million from $21.3 million YoY.
- Loan balances declined, with reductions in multifamily and commercial real estate loans.
- Increased interest expense largely due to higher funding costs.
- Severance expenses and deferred tax asset write-offs impacted earnings.
Insights
Northfield Bancorp's Q2 2024 results reveal a mixed financial performance in a challenging interest rate environment. The company reported diluted earnings per share of
Key points to consider:
- Net interest income increased
2.9% quarter-over-quarter to$28.7 million , with net interest margin expanding 6 basis points to2.09% . This suggests some improvement in the bank's ability to manage its interest rate spread. - Asset quality remains strong, with non-performing loans to total loans at
0.42% , relatively stable compared to the previous quarter. - The company maintains robust liquidity, with
$622 million in unpledged available-for-sale securities and$790 million in loans available for pledge. - The decrease in loan balances across most categories, except for home equity and construction loans, may indicate cautious lending practices or reduced demand in the current economic climate.
While the bank is navigating the high-rate environment relatively well, the decline in earnings year-over-year and the slight decrease in deposits suggest ongoing challenges. The continued share repurchases and stable dividend indicate management's confidence in the bank's financial position despite these headwinds.
Northfield Bancorp's Q2 2024 results highlight the ongoing challenges faced by regional banks in the current economic landscape. The bank's performance reflects several industry-wide trends:
- Margin pressure: Despite a slight improvement in net interest margin, the bank is still grappling with the impact of higher funding costs. The increase in interest expense outpacing interest income growth is a common issue in the sector.
- Deposit competition: The
2.5% annualized decrease in deposits (excluding brokered) indicates intensifying competition for customer funds. This trend is likely to continue as consumers seek higher yields. - Loan portfolio management: The decline in loan balances across most categories suggests a cautious approach to credit risk. This aligns with broader industry trends of tightening lending standards in anticipation of potential economic headwinds.
- Efficiency focus: The implementation of a workforce reduction plan, expected to save
$2.0 million annually, demonstrates the industry-wide emphasis on cost control to offset margin pressures.
The bank's strong liquidity position and stable asset quality are positive factors, providing a buffer against potential economic uncertainties. However, the declining earnings trend and challenges in growing the loan portfolio may require innovative strategies to drive future growth and profitability.
NOTABLE ITEMS FOR THE QUARTER INCLUDE:
- DILUTED EARNINGS PER SHARE WERE
$0.14 FOR THE CURRENT QUARTER COMPARED TO$0.15 FOR THE TRAILING QUARTER, AND$0.22 FOR THE SECOND QUARTER OF 2023. RESULTS INCLUDE$0.03 PER SHARE IN EXPENSES ASSOCIATED WITH SEVERANCE PAYMENTS AND DEFERRED TAX ASSET WRITE-OFFS RELATED TO EXPIRED STOCK OPTIONS. - NET INTEREST INCOME OF
$28.7 MILLION , INCREASED$803,000 , OR2.9% , OVER TRAILING QUARTER. - NET INTEREST MARGIN EXPANDED SIX BASIS POINTS FROM THE TRAILING QUARTER TO
2.09% . - AVERAGE YIELD ON INTEREST-EARNING ASSETS INCREASED 12 BASIS POINTS TO
4.39% , WHILE THE AVERAGE COST OF INTEREST-BEARING LIABILITIES INCREASED SIX BASIS POINTS TO2.95% FOR THE CURRENT QUARTER COMPARED TO THE TRAILING QUARTER. - DEPOSITS (EXCLUDING BROKERED) DECREASED BY
$24 MILLION , OR2.5% ANNUALIZED, COMPARED TO THE TRAILING QUARTER, AND INCREASED$20 MILLION , OR1.1% ANNUALIZED, FROM DECEMBER 31, 2023. COST OF DEPOSITS AT JUNE 30, 2024 WAS2.10% AS COMPARED TO2.07% AT MARCH 31, 2024. - LOAN BALANCES DECLINED FROM MARCH 31, 2024, WITH INCREASES IN HOME EQUITY LOANS AND CONSTRUCTION AND LAND LOANS OFFSET BY DECREASES IN ALL OTHER LOAN CATEGORIES.
- ASSET QUALITY REMAINS STRONG. NON-PERFORMING LOANS TO TOTAL LOANS REMAINED RELATIVELY STABLE AT
0.42% AT JUNE 30, 2024 AND0.41% AT MARCH 31, 2024. - THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY
$622 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY$790 MILLION . - THE COMPANY REPURCHASED 988,758 SHARES FOR A COST OF
$8.7 MILLION .$6.3 MILLION REMAINS TO BE PURCHASED UNDER THE CURRENT REPURCHASE PROGRAM AS OF JUNE 30, 2024. - CASH DIVIDEND DECLARED OF
$0.13 PER SHARE OF COMMON STOCK, PAYABLE ON AUGUST 21, 2024, TO STOCKHOLDERS OF RECORD AS OF AUGUST 7, 2024.
WOODBRIDGE, N.J., July 24, 2024 (GLOBE NEWSWIRE) -- NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of
Commenting on the quarter, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “In the second quarter, the Northfield team remained focused on the fundamentals of serving our communities, developing and building on relationships, and improving upon our efficiencies.” Mr. Klein continued, “We delivered solid financial performance for the quarter prudently managing loan and deposit balances, maintaining strong asset quality, and managing our expenses, and while significant risks remain, including the level of inflation and interest rate movements, we have effectively managed our cost of funds, and with assets repricing higher, net interest income increased as compared to the prior quarter.”
Mr. Klein concluded, “We will continue to prudently manage our strong capital and liquidity and focus on our Locally Grown approach to community commercial banking, and I am pleased to announce that the Board of Directors has declared a cash dividend of
Results of Operations
Comparison of Operating Results for the Six Months Ended June 30, 2024 and 2023
Net income was
Net interest income for the six months ended June 30, 2024, decreased
Net interest margin decreased by 42 basis points to
The provision for credit losses on loans decreased by
Non-interest income remained stable at
Non-interest expense increased
The Company recorded income tax expense of
Comparison of Operating Results for the Three Months Ended June 30, 2024 and 2023
Net income was
Net interest income for the quarter ended June 30, 2024, decreased
Net interest margin decreased by 25 basis points to
The provision for credit losses on loans decreased by
Non-interest income increased by
Non-interest expense increased by
The Company recorded income tax expense of
Comparison of Operating Results for the Three Months Ended June 30, 2024 and March 31, 2024
Net income was
Net interest income for the quarter ended June 30, 2024, increased by
Net interest margin increased by six basis points to
The provision for credit losses on loans decreased by
Non-interest income decreased by
Non-interest expense increased by
The Company recorded income tax expense of
Financial Condition
Total assets increased by
Cash and cash equivalents decreased by
Loans held-for-investment, net, decreased by
As of June 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately
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 rent increases for rent stabilized multifamily properties. At June 30, 2024, office-related loans represented
PCD loans totaled
Loan balances are summarized as follows (dollars in thousands):
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||
| Real estate loans: | ||||||||
| Multifamily | $ | 2,665,202 | $ | 2,715,919 | $ | 2,750,996 | ||
| Commercial mortgage | 896,157 | 916,112 | 929,595 | |||||
| One-to-four family residential mortgage | 151,948 | 156,276 | 160,824 | |||||
| Home equity and lines of credit | 167,852 | 163,493 | 163,520 | |||||
| Construction and land | 32,607 | 30,514 | 30,967 | |||||
| Total real estate loans | 3,913,766 | 3,982,314 | 4,035,902 | |||||
| Commercial and industrial loans | 165,586 | 168,321 | 154,984 | |||||
| PPP loans | 202 | 243 | 284 | |||||
| Other loans | 2,322 | 1,641 | 2,585 | |||||
| Total commercial and industrial, PPP, and other loans | 168,110 | 170,205 | 157,853 | |||||
| Loans held-for-investment, net (excluding PCD) | 4,081,876 | 4,152,519 | 4,193,755 | |||||
| PCD loans | 9,344 | 9,953 | 9,899 | |||||
| Total loans held-for-investment, net | $ | 4,091,220 | $ | 4,162,472 | $ | 4,203,654 | ||
The Company’s available-for-sale debt securities portfolio increased by
Equity securities were
Total liabilities increased
Deposits decreased
Deposit account balances are summarized as follows (dollars in thousands):
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||
| Transaction: | ||||||||
| Non-interest bearing checking | $ | 685,574 | $ | 693,671 | $ | 694,903 | ||
| Negotiable orders of withdrawal and interest-bearing checking | 1,251,342 | 1,277,161 | 1,231,943 | |||||
| Total transaction | 1,936,916 | 1,970,832 | 1,926,846 | |||||
| Savings and money market: | ||||||||
| Savings | 916,598 | 930,766 | 925,744 | |||||
| Money market | 255,550 | 266,464 | 302,122 | |||||
| Brokered money market | — | — | 50,000 | |||||
| Total savings | 1,172,148 | 1,197,230 | 1,277,866 | |||||
| Certificates of deposit: | ||||||||
| 568,809 | 546,192 | 525,454 | ||||||
| Over | 120,601 | 108,358 | 98,269 | |||||
| Brokered deposits | — | 98,711 | 50,000 | |||||
| Total certificates of deposit | 689,410 | 753,261 | 673,723 | |||||
| Total deposits | $ | 3,798,474 | $ | 3,921,323 | $ | 3,878,435 | ||
Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||
| Business customers | $ | 866,403 | $ | 870,004 | $ | 893,296 | ||
| Municipal (governmental) customers | $ | 815,086 | $ | 827,468 | $ | 768,556 | ||
Borrowed funds increased to
The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at June 30, 2024 (dollars in thousands):
| Year | Amount (1) | Weighted Average Rate | ||
| 2024 | ||||
| 2025 | 482,500 | |||
| 2026 | 148,000 | |||
| 2027 | 173,000 | |||
| 2028 | 154,288 | |||
(1) Borrowings maturing in 2025 include
Total stockholders’ equity decreased by
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 June 30, 2024 was
The Company had the following primary sources of liquidity at June 30, 2024 (dollars in thousands):
| Cash and cash equivalents (1) | $ | 138,914 | |
| Corporate bonds (2) | $ | 136,328 | |
| Multifamily loans (2) | $ | 789,586 | |
| Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2) | $ | 485,416 | |
(1) Excludes
(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 June 30, 2024, the Company and the Bank's estimated CBLR ratios were
Asset Quality
The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at June 30, 2024, March 31, 2024, and December 31, 2023 (dollars in thousands):
| June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
| Non-accrual loans: | |||||||||||
| Held-for-investment | |||||||||||
| Real estate loans: | |||||||||||
| Multifamily | $ | 2,691 | $ | 2,676 | $ | 2,709 | |||||
| Commercial | 10,244 | 10,680 | 6,491 | ||||||||
| One-to-four family residential | 69 | 101 | 104 | ||||||||
| Home equity and lines of credit | 1,124 | 1,125 | 499 | ||||||||
| Commercial and industrial | 2,570 | 2,200 | 305 | ||||||||
| Other | 6 | 6 | 7 | ||||||||
| Total non-accrual loans | 16,704 | 16,788 | 10,115 | ||||||||
| Loans delinquent 90 days or more and still accruing: | |||||||||||
| Held-for-investment | |||||||||||
| Real estate loans: | |||||||||||
| Multifamily | — | 192 | 201 | ||||||||
| One-to-four family residential | 136 | 137 | 406 | ||||||||
| Home equity and lines of credit | 467 | 124 | 711 | ||||||||
| Total loans held-for-investment delinquent 90 days or more and still accruing | 603 | 453 | 1,318 | ||||||||
| Total non-performing assets | $ | 17,307 | $ | 17,241 | $ | 11,433 | |||||
| Non-performing loans to total loans | 0.42 | % | 0.41 | % | 0.27 | % | |||||
| Non-performing assets to total assets | 0.30 | % | 0.29 | % | 0.20 | % | |||||
| Accruing loans 30 to 89 days delinquent | $ | 6,265 | $ | 8,266 | $ | 8,683 | |||||
The increase in non-accrual commercial real estate loans from December 31, 2023, was primarily attributable to one loan with a balance of
Subsequent to the quarter end, two non-accrual commercial real estate loans totaling approximately
Accruing Loans 30 to 89 Days Delinquent
Loans 30 to 89 days delinquent and on accrual status totaled
| June 30, 2024 | March 31, 2024 | December 31, 2023 | ||||||
| Held-for-investment | ||||||||
| Real estate loans: | ||||||||
| Multifamily | $ | 168 | $ | 171 | $ | 740 | ||
| Commercial | 1,557 | 2,106 | 1,010 | |||||
| One-to-four family residential | 1,769 | 1,171 | 3,339 | |||||
| Home equity and lines of credit | 786 | 1,029 | 817 | |||||
| Construction and land | — | 1,727 | — | |||||
| Commercial and industrial loans | 1,977 | 2,062 | 2,767 | |||||
| Other loans | 8 | — | 10 | |||||
| Total delinquent accruing loans held-for-investment | $ | 6,265 | $ | 8,266 | $ | 8,683 | ||
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 (
Our multifamily loan portfolio at June 30, 2024 totaled
| % 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 | $ | 307,163 | 41.2 | % | $ | 1,155 | $ | 16,681 | 1.56x | $ | 168 | $ | 551 | $ | 785 | $ | 879 | |||||||||||
| >0-10 | 4,771 | 0.6 | 1,590 | 238 | 51.7 | 1.46 | — | — | — | — | ||||||||||||||||||
| >10-20 | 18,820 | 2.5 | 1,448 | 2,881 | 49.5 | 1.57 | — | — | — | — | ||||||||||||||||||
| >20-30 | 17,965 | 2.4 | 2,246 | 5,543 | 55.1 | 1.45 | — | — | — | — | ||||||||||||||||||
| >30-40 | 15,291 | 2.0 | 1,274 | 3,112 | 48.6 | 1.67 | — | — | — | — | ||||||||||||||||||
| >40-50 | 22,332 | 3.0 | 1,314 | 2,756 | 48.4 | 1.64 | — | — | — | — | ||||||||||||||||||
| >50-60 | 9,526 | 1.3 | 1,588 | 2,354 | 40.1 | 2.03 | — | — | — | — | ||||||||||||||||||
| >60-70 | 16,697 | 2.2 | 3,339 | 11,416 | 54.9 | 1.47 | — | — | — | — | ||||||||||||||||||
| >70-80 | 15,432 | 2.1 | 2,205 | 4,733 | 47.3 | 1.54 | — | — | — | — | ||||||||||||||||||
| >80-90 | 20,965 | 2.8 | 1,165 | 3,159 | 46.9 | 1.71 | — | — | — | — | ||||||||||||||||||
| >90-100 | 298,182 | 39.9 | 1,796 | 17,011 | 52.8 | 1.68 | — | 2,141 | 1,207 | 4,535 | ||||||||||||||||||
| Total | $ | 747,144 | 100.0 | % | $ | 1,434 | $ | 17,011 | 51.1% | 1.62x | $ | 168 | $ | 2,692 | $ | 1,992 | $ | 5,414 | ||||||||||
The table below sets forth our New York rent-regulated loans by county (dollars in thousands).
| County | Balance | LTV* | DSCR* | ||||
| Bronx | $ | 119,596 | 1.67x | ||||
| Kings | 191,378 | 1.65 | |||||
| Nassau | 2,186 | 1.88 | |||||
| New York | 40,903 | 1.52 | |||||
| Queens | 39,148 | 1.88 | |||||
| Richmond | 28,982 | 1.67 | |||||
| Westchester | 17,787 | 1.37 | |||||
| Total | $ | 439,980 | 51.7% | 1.66x | |||
* Weighted Average
None of the loans that are rent-regulated in New York are interest only. During the remainder of 2024, eight loans with an aggregate principal balance of
About Northfield Bank
Northfield Bank, founded in 1887, operates 39 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, the effects of the COVID-19 pandemic, 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, 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, and adverse changes in the securities markets. 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 Three Months Ended | At or For the Six Months Ended | |||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | ||||||||||
| Selected Financial Ratios: | ||||||||||||||
| Performance Ratios (1) | ||||||||||||||
| Return on assets (ratio of net income to average total assets) | 0.41 | % | 0.69 | % | 0.43 | % | 0.42 | % | 0.77 | % | ||||
| Return on equity (ratio of net income to average equity) | 3.45 | 5.52 | 3.59 | 3.52 | 6.16 | |||||||||
| Average equity to average total assets | 12.00 | 12.44 | 12.04 | 12.02 | 12.42 | |||||||||
| Interest rate spread | 1.44 | 1.83 | 1.39 | 1.41 | 2.02 | |||||||||
| Net interest margin | 2.09 | 2.34 | 2.03 | 2.06 | 2.48 | |||||||||
| Efficiency ratio (2) | 72.89 | 61.14 | 71.43 | 72.16 | 58.03 | |||||||||
| Non-interest expense to average total assets | 1.60 | 1.49 | 1.55 | 1.58 | 1.51 | |||||||||
| Non-interest expense to average total interest-earning assets | 1.68 | 1.56 | 1.63 | 1.65 | 1.58 | |||||||||
| Average interest-earning assets to average interest-bearing liabilities | 128.47 | 133.31 | 128.66 | 128.57 | 134.39 | |||||||||
| Asset Quality Ratios: | ||||||||||||||
| Non-performing assets to total assets | 0.30 | 0.19 | 0.29 | 0.30 | 0.19 | |||||||||
| Non-performing loans (3) to total loans (4) | 0.42 | 0.24 | 0.41 | 0.42 | 0.24 | |||||||||
| Allowance for credit losses to non-performing loans | 200.96 | 398.24 | 214.83 | 200.96 | 398.24 | |||||||||
| Allowance for credit losses to total loans held-for-investment, net (5) | 0.85 | 0.96 | 0.89 | 0.85 | 0.96 | |||||||||
(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) 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) | |||||||||||
| June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
| ASSETS: | |||||||||||
| Cash and due from banks | $ | 14,575 | $ | 13,550 | $ | 13,889 | |||||
| Interest-bearing deposits in other financial institutions | 138,914 | 225,231 | 215,617 | ||||||||
| Total cash and cash equivalents | 153,489 | 238,781 | 229,506 | ||||||||
| Trading securities | 12,939 | 12,726 | 12,549 | ||||||||
| Debt securities available-for-sale, at estimated fair value | 1,119,439 | 1,075,741 | 795,464 | ||||||||
| Debt securities held-to-maturity, at amortized cost | 9,749 | 9,810 | 9,866 | ||||||||
| Equity securities | 13,964 | 11,038 | 10,629 | ||||||||
| Loans held-for-investment, net | 4,091,220 | 4,162,472 | 4,203,654 | ||||||||
| Allowance for credit losses | (34,780 | ) | (37,039 | ) | (37,535 | ) | |||||
| Net loans held-for-investment | 4,056,440 | 4,125,433 | 4,166,119 | ||||||||
| Accrued interest receivable | 19,343 | 19,358 | 18,491 | ||||||||
| Bank-owned life insurance | 173,483 | 172,507 | 171,543 | ||||||||
| Federal Home Loan Bank of New York stock, at cost | 41,785 | 39,848 | 39,667 | ||||||||
| Operating lease right-of-use assets | 29,305 | 30,076 | 30,202 | ||||||||
| Premises and equipment, net | 23,628 | 24,301 | 24,771 | ||||||||
| Goodwill | 41,012 | 41,012 | 41,012 | ||||||||
| Other assets | 51,785 | 50,974 | 48,577 | ||||||||
| Total assets | $ | 5,746,361 | $ | 5,851,605 | $ | 5,598,396 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
| LIABILITIES: | |||||||||||
| Deposits | $ | 3,798,474 | $ | 3,921,323 | $ | 3,878,435 | |||||
| Securities sold under agreements to repurchase | — | 25,000 | 25,000 | ||||||||
| Federal Home Loan Bank advances and other borrowings | 1,089,727 | 1,039,621 | 834,272 | ||||||||
| Subordinated debentures, net of issuance costs | 61,331 | 61,275 | 61,219 | ||||||||
| Lease liabilities | 34,035 | 34,942 | 35,205 | ||||||||
| Advance payments by borrowers for taxes and insurance | 26,113 | 30,202 | 25,102 | ||||||||
| Accrued expenses and other liabilities | 43,657 | 40,813 | 39,718 | ||||||||
| Total liabilities | 5,053,337 | 5,153,176 | 4,898,951 | ||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
| Total stockholders’ equity | 693,024 | 698,429 | 699,445 | ||||||||
| Total liabilities and stockholders’ equity | $ | 5,746,361 | $ | 5,851,605 | $ | 5,598,396 | |||||
| Total shares outstanding | 43,466,961 | 44,462,652 | 44,524,929 | ||||||||
| Tangible book value per share (1) | $ | 15.00 | $ | 14.78 | $ | 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
| NORTHFIELD BANCORP, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
| (Dollars in thousands, except share and per share amounts) (unaudited) | ||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Loans | $ | 45,967 | $ | 45,300 | $ | 46,047 | $ | 92,014 | $ | 89,007 | ||||||||
| Mortgage-backed securities | 7,355 | 3,714 | 4,398 | 11,753 | 7,506 | |||||||||||||
| Other securities | 3,506 | 1,113 | 3,841 | 7,347 | 2,498 | |||||||||||||
| Federal Home Loan Bank of New York dividends | 935 | 727 | 970 | 1,905 | 1,192 | |||||||||||||
| Deposits in other financial institutions | 2,457 | 816 | 3,392 | 5,849 | 1,394 | |||||||||||||
| Total interest income | 60,220 | 51,670 | 58,648 | 118,868 | 101,597 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Deposits | 20,664 | 10,483 | 19,273 | 39,937 | 18,304 | |||||||||||||
| Borrowings | 10,041 | 9,198 | 10,663 | 20,704 | 15,589 | |||||||||||||
| Subordinated debt | 828 | 828 | 828 | 1,656 | 1,647 | |||||||||||||
| Total interest expense | 31,533 | 20,509 | 30,764 | 62,297 | 35,540 | |||||||||||||
| Net interest income | 28,687 | 31,161 | 27,884 | 56,571 | 66,057 | |||||||||||||
| (Benefit)/provision for credit losses | (618 | ) | 30 | 415 | (203 | ) | 894 | |||||||||||
| Net interest income after (benefit)/provision for credit losses | 29,305 | 31,131 | 27,469 | 56,774 | 65,163 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Fees and service charges for customer services | 1,570 | 1,309 | 1,615 | 3,185 | 2,689 | |||||||||||||
| Income on bank-owned life insurance | 976 | 889 | 964 | 1,940 | 1,759 | |||||||||||||
| Gains/(losses) on available-for-sale debt securities, net | 1 | (18 | ) | — | 1 | (17 | ) | |||||||||||
| Gains on trading securities, net | 188 | 506 | 699 | 887 | 1,018 | |||||||||||||
| Gain on sale of loans | 51 | 35 | — | 51 | 35 | |||||||||||||
| Other | 73 | 95 | 103 | 176 | 664 | |||||||||||||
| Total non-interest income | 2,859 | 2,816 | 3,381 | 6,240 | 6,148 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Compensation and employee benefits | 13,388 | 12,353 | 12,765 | 26,153 | 23,390 | |||||||||||||
| Occupancy | 3,222 | 3,244 | 3,553 | 6,775 | 6,616 | |||||||||||||
| Furniture and equipment | 477 | 460 | 484 | 961 | 914 | |||||||||||||
| Data processing | 2,177 | 2,071 | 2,147 | 4,324 | 4,314 | |||||||||||||
| Professional fees | 681 | 768 | 809 | 1,490 | 1,739 | |||||||||||||
| Advertising | 482 | 573 | 518 | 1,000 | 1,420 | |||||||||||||
| Federal Deposit Insurance Corporation insurance | 649 | 568 | 588 | 1,237 | 1,172 | |||||||||||||
| Credit loss expense/(benefit) for off-balance sheet exposures | 103 | (661 | ) | 83 | 186 | (550 | ) | |||||||||||
| Other | 1,814 | 1,399 | 1,385 | 3,199 | 2,888 | |||||||||||||
| Total non-interest expense | 22,993 | 20,775 | 22,332 | 45,325 | 41,903 | |||||||||||||
| Income before income tax expense | 9,171 | 13,172 | 8,518 | 17,689 | 29,408 | |||||||||||||
| Income tax expense | 3,214 | 3,613 | 2,304 | 5,518 | 8,142 | |||||||||||||
| Net income | $ | 5,957 | $ | 9,559 | $ | 6,214 | $ | 12,171 | $ | 21,266 | ||||||||
| Net income per common share: | ||||||||||||||||||
| Basic | $ | 0.14 | $ | 0.22 | $ | 0.15 | $ | 0.29 | $ | 0.48 | ||||||||
| Diluted | $ | 0.14 | $ | 0.22 | $ | 0.15 | $ | 0.29 | $ | 0.48 | ||||||||
| Basic average shares outstanding | 41,999,541 | 43,914,110 | 42,367,243 | 42,181,306 | 44,346,881 | |||||||||||||
| Diluted average shares outstanding | 42,002,650 | 43,952,939 | 42,408,953 | 42,203,715 | 44,438,633 | |||||||||||||
| NORTHFIELD BANCORP, INC. | ||||||||||||||||||||||||||
| ANALYSIS OF NET INTEREST INCOME | ||||||||||||||||||||||||||
| (Dollars in thousands) (unaudited) | ||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 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) | $ | 4,128,105 | $ | 45,967 | 4.48 | % | $ | 4,174,668 | $ | 46,047 | 4.44 | % | $ | 4,284,871 | $ | 45,300 | 4.24 | % | ||||||||
| Mortgage-backed securities (3) | 824,498 | 7,355 | 3.59 | 648,811 | 4,398 | 2.73 | 703,415 | 3,714 | 2.12 | |||||||||||||||||
| Other securities (3) | 333,855 | 3,506 | 4.22 | 391,980 | 3,841 | 3.94 | 239,273 | 1,113 | 1.87 | |||||||||||||||||
| Federal Home Loan Bank of New York stock | 38,707 | 935 | 9.72 | 39,599 | 970 | 9.85 | 43,901 | 727 | 6.64 | |||||||||||||||||
| Interest-earning deposits in financial institutions | 191,470 | 2,457 | 5.16 | 262,884 | 3,392 | 5.19 | 67,822 | 816 | 4.83 | |||||||||||||||||
| Total interest-earning assets | 5,516,635 | 60,220 | 4.39 | 5,517,942 | 58,648 | 4.27 | 5,339,282 | 51,670 | 3.88 | |||||||||||||||||
| Non-interest-earning assets | 265,702 | 266,428 | 244,567 | |||||||||||||||||||||||
| Total assets | $ | 5,782,337 | $ | 5,784,370 | $ | 5,583,849 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Savings, NOW, and money market accounts | $ | 2,490,372 | $ | 13,183 | 2.13 | % | $ | 2,464,297 | $ | 12,331 | 2.01 | % | $ | 2,399,631 | $ | 6,486 | 1.08 | % | ||||||||
| Certificates of deposit | 701,272 | 7,481 | 4.29 | 654,328 | 6,942 | 4.27 | 540,984 | 3,997 | 2.96 | |||||||||||||||||
| Total interest-bearing deposits | 3,191,644 | 20,664 | 2.60 | 3,118,625 | 19,273 | 2.49 | 2,940,615 | 10,483 | 1.43 | |||||||||||||||||
| Borrowed funds | 1,041,035 | 10,041 | 3.88 | 1,108,880 | 10,663 | 3.87 | 1,003,611 | 9,198 | 3.68 | |||||||||||||||||
| Subordinated debt | 61,294 | 828 | 5.43 | 61,239 | 828 | 5.44 | 61,071 | 828 | 5.44 | |||||||||||||||||
| Total interest-bearing liabilities | 4,293,973 | 31,533 | 2.95 | 4,288,744 | 30,764 | 2.89 | 4,005,297 | 20,509 | 2.05 | |||||||||||||||||
| Non-interest bearing deposits | 691,384 | 699,640 | 780,806 | |||||||||||||||||||||||
| Accrued expenses and other liabilities | 103,082 | 99,594 | 102,846 | |||||||||||||||||||||||
| Total liabilities | 5,088,439 | 5,087,978 | 4,888,949 | |||||||||||||||||||||||
| Stockholders' equity | 693,898 | 696,392 | 694,900 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,782,337 | $ | 5,784,370 | $ | 5,583,849 | ||||||||||||||||||||
| Net interest income | $ | 28,687 | $ | 27,884 | $ | 31,161 | ||||||||||||||||||||
| Net interest rate spread (4) | 1.44 | % | 1.39 | % | 1.83 | % | ||||||||||||||||||||
| Net interest-earning assets (5) | $ | 1,222,662 | $ | 1,229,198 | $ | 1,333,985 | ||||||||||||||||||||
| Net interest margin (6) | 2.09 | % | 2.03 | % | 2.34 | % | ||||||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 128.47 | % | 128.66 | % | 133.31 | % | ||||||||||||||||||||
(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 Six Months Ended | |||||||||||||||||
| June 30, 2024 | June 30, 2023 | ||||||||||||||||
| Average Outstanding Balance | Interest | Average Yield/ Rate(1) | Average Outstanding Balance | Interest | Average Yield/ Rate(1) | ||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Loans (2) | $ | 4,151,387 | $ | 92,014 | 4.46 | % | $ | 4,264,932 | $ | 89,007 | 4.21 | % | |||||
| Mortgage-backed securities (3) | 736,654 | 11,753 | 3.21 | 724,955 | 7,506 | 2.09 | |||||||||||
| Other securities (3) | 362,917 | 7,347 | 4.07 | 257,514 | 2,498 | 1.96 | |||||||||||
| Federal Home Loan Bank of New York stock | 39,153 | 1,905 | 9.78 | 41,000 | 1,192 | 5.86 | |||||||||||
| Interest-earning deposits in financial institutions | 227,177 | 5,849 | 5.18 | 72,519 | 1,394 | 3.88 | |||||||||||
| Total interest-earning assets | 5,517,288 | 118,868 | 4.33 | 5,360,920 | 101,597 | 3.82 | |||||||||||
| Non-interest-earning assets | 266,065 | 242,288 | |||||||||||||||
| Total assets | $ | 5,783,353 | $ | 5,603,208 | |||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Savings, NOW, and money market accounts | $ | 2,477,334 | $ | 25,514 | 2.07 | % | $ | 2,461,283 | $ | 10,329 | 0.85 | % | |||||
| Certificates of deposit | 677,800 | 14,423 | 4.28 | 582,642 | 7,975 | 2.76 | |||||||||||
| Total interest-bearing deposits | 3,155,134 | 39,937 | 2.55 | 3,043,925 | 18,304 | 1.21 | |||||||||||
| Borrowed funds | 1,074,957 | 20,704 | 3.87 | 883,934 | 15,589 | 3.56 | |||||||||||
| Subordinated debt | 61,266 | 1,656 | 5.44 | 61,183 | 1,647 | 5.43 | |||||||||||
| Total interest-bearing liabilities | $ | 4,291,357 | 62,297 | 2.92 | $ | 3,989,042 | 35,540 | 1.80 | |||||||||
| Non-interest bearing deposits | 695,512 | 814,266 | |||||||||||||||
| Accrued expenses and other liabilities | 101,339 | 104,118 | |||||||||||||||
| Total liabilities | 5,088,208 | 4,907,426 | |||||||||||||||
| Stockholders' equity | 695,145 | 695,782 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,783,353 | $ | 5,603,208 | |||||||||||||
| Net interest income | $ | 56,571 | $ | 66,057 | |||||||||||||
| Net interest rate spread (4) | 1.41 | % | 2.02 | % | |||||||||||||
| Net interest-earning assets (5) | $ | 1,225,931 | $ | 1,371,878 | |||||||||||||
| Net interest margin (6) | 2.06 | % | 2.48 | % | |||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 128.57 | % | 134.39 | % | |||||||||||||
(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.
Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519
FAQ
What were Northfield Bancorp's earnings per share for Q2 2024?
How did Northfield Bancorp's net interest income perform in Q2 2024?
What changes occurred in Northfield Bancorp's loan balances during Q2 2024?
What was Northfield Bancorp's net income for the first six months of 2024?
When is Northfield Bancorp's next dividend payable?
