PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements, including balance sheets, income, equity, and cash flow, are presented with detailed accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (In thousands) | Metric | June 30, 2025 | December 31, 2024 | Change (Absolute) | Change (%) | | :-------------------------------- | :------------ | :---------------- | :---------------- | :--------- | | Total Assets | $5,679,291 | $5,666,378 | $12,913 | 0.2% | | Total Liabilities | $4,969,017 | $4,961,682 | $7,335 | 0.1% | | Total Stockholders' Equity | $710,274 | $704,696 | $5,578 | 0.8% | | Debt securities available-for-sale | $1,300,975 | $1,100,817 | $200,158 | 18.2% | | Loans held-for-investment | $3,920,613 | $4,022,224 | $(101,611) | -2.5% | | Deposits | $3,986,187 | $4,138,477 | $(152,290) | -3.7% | | FHLB advances and other borrowings | $831,920 | $666,402 | $165,518 | 24.8% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income Highlights (In thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $9,571 | $5,957 | $17,447 | $12,171 | | Basic EPS | $0.24 | $0.14 | $0.43 | $0.29 | | Diluted EPS | $0.24 | $0.14 | $0.43 | $0.29 | | Total interest income | $62,425 | $60,220 | $122,517 | $118,868 | | Total interest expense | $28,029 | $31,533 | $56,330 | $62,297 | | Net interest income | $34,396 | $28,687 | $66,187 | $56,571 | | Provision (benefit) for credit losses | $2,086 | $(618) | $4,668 | $(203) | | Total non-interest income | $4,526 | $2,859 | $7,548 | $6,240 | | Total non-interest expense | $22,970 | $22,993 | $44,405 | $45,325 | | Income tax expense | $4,295 | $3,214 | $7,215 | $5,518 | | Other comprehensive income, net of tax | $3,777 | $2,298 | $11,905 | $3,041 | | Comprehensive income | $13,348 | $8,255 | $29,352 | $15,212 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Changes in Stockholders' Equity (Six Months Ended June 30, 2025 vs. December 31, 2024, in thousands) | Metric | December 31, 2024 | June 30, 2025 | Change | | :----------------------------------- | :---------------- | :------------ | :----- | | Total Stockholders' Equity | $704,696 | $710,274 | $5,578 | | Net income | N/A | $17,447 | N/A | | Other comprehensive income, net of tax | N/A | $11,905 | N/A | | Repurchase of treasury stock | N/A | $(15,000) | N/A | | Cash dividends declared and paid | N/A | $(10,683) | N/A | - Stockholders' equity increased by **$5.6 million** from December 31, 2024, to June 30, 2025, primarily due to net income and other comprehensive income, partially offset by treasury stock repurchases and cash dividends[181](index=181&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $23,550 | $11,148 | | Net cash used in investing activities | $(82,208) | $(215,614) | | Net cash (used in) provided by financing activities | $(11,449) | $128,449 | | Net decrease in cash and cash equivalents | $(70,107) | $(76,017) | | Cash and cash equivalents at end of period | $97,637 | $153,489 | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes disclose financial instruments, credit quality, equity, fair value measurements, and accounting policies, highlighting key changes and assumptions [Note 1 – Consolidated Financial Statements](index=11&type=section&id=Note%201%20%E2%80%93%20Consolidated%20Financial%20Statements) - The consolidated financial statements are prepared in conformity with U.S. GAAP, with management making estimates and assumptions, particularly for the allowance for credit losses and deferred tax assets[30](index=30&type=chunk) - Interim financial statements are condensed and omit certain disclosures as per SEC rules, and should be read with the 2024 Annual Report on Form 10-K[31](index=31&type=chunk)[32](index=32&type=chunk) [Note 2 – Debt Securities Available-for-Sale](index=12&type=section&id=Note%202%20%E2%80%93%20Debt%20Securities%20Available-for-Sale) Debt Securities Available-for-Sale (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total debt securities available-for-sale (Estimated fair value) | $1,300,975 | $1,100,817 | | Gross unrealized gains | $8,925 | $1,366 | | Gross unrealized losses | $(20,879) | $(30,326) | - The fair value of pledged debt securities available-for-sale increased to **$494.3 million** at June 30, 2025, from $420.4 million at December 31, 2024[37](index=37&type=chunk) - Net gains on trading securities were **$1.0 million** for Q2 2025 (YoY increase from $188 thousand) and **$709 thousand** for H1 2025 (YoY decrease from $887 thousand)[38](index=38&type=chunk) - No allowance for credit losses was recorded on available-for-sale debt securities as of June 30, 2025, or December 31, 2024, as declines in fair value were not due to credit losses[42](index=42&type=chunk) [Note 3 – Debt Securities Held-to-Maturity](index=14&type=section&id=Note%203%20%E2%80%93%20Debt%20Securities%20Held-to-Maturity) Debt Securities Held-to-Maturity (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total securities held-to-maturity (Amortized Cost) | $8,454 | $9,303 | | Estimated Fair Value | $8,108 | $8,762 | | Gross Unrealized Losses | $(394) | $(557) | - Debt securities held-to-maturity with a carrying value of **$8.3 million** at June 30, 2025, were pledged to secure borrowings and deposits[47](index=47&type=chunk) - No allowance for credit losses was recorded for held-to-maturity securities, as they are backed by the U.S. Government and expected to be settled at amortized cost[49](index=49&type=chunk) [Note 4 – Equity Securities](index=15&type=section&id=Note%204%20%E2%80%93%20Equity%20Securities) Equity Securities (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :----------------

Core Viewpoint - Northfield Bancorp (NFBK) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, with the Zacks Consensus Estimate for Northfield showing a 16% increase over the past three months [8]. - The expected earnings per share for Northfield for the fiscal year ending December 2025 is $0.98, reflecting no year-over-year change [8]. Impact of Institutional Investors - Institutional investors play a role in stock price movements by adjusting their valuations based on earnings estimates, leading to buying or selling actions that affect stock prices [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Northfield's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Northfield Bancorp reported strong Q2 2025 results, with GAAP EPS of $0.24 exceeding analyst estimates of $0.23 and GAAP revenue of $38.9 million surpassing expectations of $36.53 million, reflecting significant year-over-year improvements in profitability and efficiency [1][2] Financial Performance - Q2 2025 GAAP EPS increased by 71.4% from $0.14 in Q2 2024 to $0.24 [2] - GAAP revenue rose by 23.5% from $31.6 million in Q2 2024 to $38.9 million [2] - Net income for the quarter was $9.6 million, up from $6.0 million in the prior-year period [5] - Non-interest income increased by 58.3% to $4.5 million, driven by higher trading activity and insurance income [11] Efficiency and Margins - Net interest margin improved to 2.57%, up from 2.09% a year earlier, due to lower costs on interest-bearing liabilities and higher yields on interest-earning assets [6] - The efficiency ratio decreased to 59.02% from 72.89% in Q1 2025, indicating improved operational efficiency [7] Asset Quality - Non-performing loans declined to 0.36% of total loans from 0.51% a year earlier, reflecting better asset quality [8] - The allowance for credit losses covered 256% of non-performing loans, with net charge-offs falling to $887,000 [8] Loan Portfolio and Funding - The loan portfolio saw a decline, particularly in multifamily loans, which decreased by $114.4 million from December 31, 2024, to June 30, 2025 [9] - Core non-brokered deposits increased by $36.0 million, while total deposits contracted due to a runoff of brokered deposits [10] Strategic Focus - The company is actively managing its loan book to reduce concentrations in higher-risk segments, aiming to maintain strong asset quality and regulatory capital standards [4] - Management emphasized a focus on margin expansion, careful portfolio risk management, and cost control, without providing formal guidance for future quarters [12][13]

[Second Quarter 2025 Financial Highlights](index=2&type=section&id=NORTHFIELD%20BANCORP%2C%20INC.%20ANNOUNCES%20SECOND%20QUARTER%202025%20RESULTS) The company reported strong net income growth, improved asset quality, and continued capital returns through dividends and buybacks | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $9.6 million | $7.9 million | $6.0 million | | Diluted EPS | $0.24 | $0.19 | $0.14 | - Net income growth was primarily driven by an increase in net interest income, attributable to **lower funding costs and higher yields on loans and securities**[3](index=3&type=chunk) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin | 2.57% | 2.38% | 2.09% | - Asset quality improved, with the ratio of non-performing loans to total loans **decreasing to 0.36%** at June 30, 2025, from 0.48% at March 31, 2025[5](index=5&type=chunk) - The company continued its capital return program, repurchasing **$15.0 million in stock** year-to-date and declaring a quarterly cash dividend of **$0.13 per common share**[4](index=4&type=chunk)[5](index=5&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) The company's operational results show significant year-over-year and sequential growth, primarily driven by expanding net interest income [Comparison for the Six Months Ended June 30, 2025 and 2024](index=3&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Net income for the six-month period grew to $17.4 million, propelled by higher net interest income and lower non-interest expenses | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Income | $17.4 million | $12.2 million | | Diluted EPS | $0.43 | $0.29 | - Net interest income **rose 17.0% to $66.2 million**, driven by a $6.0 million decrease in interest expense and a $3.6 million increase in interest income[7](index=7&type=chunk)[8](index=8&type=chunk) - The provision for credit losses **increased by $4.9 million to $4.7 million**, primarily due to a worsening macroeconomic forecast in the CECL model[9](index=9&type=chunk) - Non-interest expense **decreased by $920,000**, mainly due to the absence of prior-year severance expense and lower advertising costs[11](index=11&type=chunk) [Comparison for the Three Months Ended June 30, 2025 and 2024 (YoY)](index=4&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Year-over-year net income increased significantly to $9.6 million, driven by a 19.9% rise in net interest income and margin expansion | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $9.6 million | $6.0 million | | Net Interest Income | $34.4 million | $28.7 million | | Net Interest Margin | 2.57% | 2.09% | - The increase in net interest income was due to a **$3.5 million decrease in interest expense** and a **$2.2 million increase in interest income**[14](index=14&type=chunk) - The provision for credit losses was $2.1 million, an **increase of $2.7 million** from a benefit in the prior-year quarter[16](index=16&type=chunk) - Non-interest income **grew by $1.7 million**, primarily due to higher gains on trading securities and increased income from bank-owned life insurance[17](index=17&type=chunk) [Comparison for the Three Months Ended June 30, 2025 and March 31, 2025 (QoQ)](index=5&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%20March%2031%2C%202025) Quarter-over-quarter net income grew to $9.6 million, supported by higher net interest income and a lower provision for credit losses | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $9.6 million | $7.9 million | | Net Interest Income | $34.4 million | $31.8 million | | Net Interest Margin | 2.57% | 2.38% | - The provision for credit losses **decreased to $2.1 million** from $2.6 million in the prior quarter, mainly due to lower net charge-offs[23](index=23&type=chunk) - Non-interest income **increased by $1.5 million**, primarily due to a $1.3 million increase in gains on trading securities[24](index=24&type=chunk) - Non-interest expense **increased by $1.5 million**, largely due to a $2.0 million rise in compensation and benefits[25](index=25&type=chunk) [Financial Condition](index=6&type=section&id=Financial%20Condition) The company's balance sheet remained stable with a strategic shift in asset composition and a reduction in brokered deposits [Assets](index=6&type=section&id=Assets) Total assets grew slightly to $5.68 billion, reflecting a strategic reallocation from cash and loans to debt securities | Asset Category | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $5.68 billion | $5.67 billion | +$12.9 million | | Cash & Equivalents | $97.6 million | $167.7 million | -$70.1 million | | Loans Held-for-Investment, net | $3.92 billion | $4.02 billion | -$101.6 million | | Available-for-Sale Debt Securities | $1.30 billion | $1.10 billion | +$200.2 million | - The decrease in the loan portfolio was a strategic effort to manage concentration risk, with **multifamily loans decreasing by $114.4 million**[29](index=29&type=chunk) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Multifamily | $2,483,078 | $2,597,484 | | Commercial mortgage | $886,135 | $889,801 | | One-to-four family residential | $162,750 | $150,217 | | Home equity and lines of credit | $186,848 | $174,062 | | **Total loans held-for-investment, net** | **$3,920,613** | **$4,022,224** | [Liabilities and Stockholders' Equity](index=8&type=section&id=Liabilities%20and%20Stockholders'%20Equity) Liabilities remained stable as reduced brokered deposits were offset by increased borrowings, while equity grew through retained earnings | Liability/Equity Category | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Liabilities | $4.97 billion | $4.96 billion | +$7.3 million | | Deposits | $3.99 billion | $4.14 billion | -$152.3 million | | Borrowed Funds | $893.5 million | $727.8 million | +$165.5 million | | Total Stockholders' Equity | $710.3 million | $704.7 million | +$5.6 million | - The company reduced its reliance on brokered deposits, which **decreased by 71.5%**, while core deposits increased by $36.0 million[37](index=37&type=chunk) - The company completed **$15.0 million in stock repurchases** during the first six months of 2025 and has no outstanding repurchase program[40](index=40&type=chunk) - The Company and the Bank **remain well-capitalized**, with Community Bank Leverage Ratios (CBLR) of 12.09% and 12.56% respectively[43](index=43&type=chunk) [Asset Quality](index=10&type=section&id=Asset%20Quality) Asset quality improved with a notable decrease in non-performing loans and delinquencies, particularly within the multifamily portfolio Asset Quality Ratios | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Non-performing loans to total loans | 0.36% | 0.48% | 0.51% | | Non-performing assets to total assets | 0.25% | 0.34% | 0.36% | | Accruing loans 30-89 days delinquent | $4.1 million | $6.8 million | $9.3 million | - The decrease in non-performing loans was partly due to the **full repayment of non-performing loans held-for-sale** from a settlement agreement[45](index=45&type=chunk) - The multifamily loan portfolio totaled **$2.48 billion (63% of total loans)**, of which $434.1 million are collateralized by New York rent-regulated properties[50](index=50&type=chunk) New York Rent-Regulated Multifamily Portfolio | Metric | Value | | :--- | :--- | | Total Balance | $434.1 million | | Weighted Average LTV | 49.9% | | Weighted Average DSCR | 1.56x | [Consolidated Financial Statements (Unaudited)](index=14&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets, income statements, and key performance ratio analyses [Selected Consolidated Financial and Other Data](index=14&type=section&id=SELECTED%20CONSOLIDATED%20FINANCIAL%20AND%20OTHER%20DATA) Key performance ratios, including ROA, ROE, and efficiency, showed significant improvement over the prior year Key Performance Ratios (Annualized) | Ratio | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Return on assets (ROA) | 0.68% | 0.41% | 0.62% | 0.42% | | Return on equity (ROE) | 5.41% | 3.45% | 4.97% | 3.52% | | Net interest margin | 2.57% | 2.09% | 2.48% | 2.06% | | Efficiency ratio | 59.02% | 72.89% | 60.22% | 72.16% | [Consolidated Balance Sheets](index=15&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet reflects stable total assets at $5.68 billion, with a shift in asset mix and modest growth in equity Key Balance Sheet Items (in thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $5,679,291 | $5,666,378 | | Net Loans Held-for-Investment | $3,884,493 | $3,987,041 | | Total Deposits | $3,986,187 | $4,138,477 | | Total Borrowings | $893,474 | $727,844 | | Total Stockholders' Equity | $710,274 | $704,696 | [Consolidated Statements of Income](index=16&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The income statement highlights significant net income growth for both the quarter and six-month period, led by higher net interest income Key Income Statement Items (in thousands) | Item | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $34,396 | $28,687 | $66,187 | $56,571 | | Provision/(benefit) for credit losses | $2,086 | $(618) | $4,668 | $(203) | | Non-interest Income | $4,526 | $2,859 | $7,548 | $6,240 | | Non-interest Expense | $22,970 | $22,993 | $44,405 | $45,325 | | **Net Income** | **$9,571** | **$5,957** | **$17,447** | **$12,171** | [Analysis of Net Interest Income](index=17&type=section&id=ANALYSIS%20OF%20NET%20INTEREST%20INCOME) Net interest margin expanded to 2.57% in Q2 2025, driven by higher asset yields and lower liability costs Net Interest Margin Analysis (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Avg. Yield on Interest-Earning Assets | 4.67% | 4.39% | | Avg. Cost of Interest-Bearing Liabilities | 2.73% | 2.95% | | Net Interest Rate Spread | 1.94% | 1.44% | | Net Interest Margin | 2.57% | 2.09% |

Core Viewpoint - Northfield Bancorp, Inc. reported strong financial results for the second quarter and first half of 2025, driven by increased net interest income and disciplined expense management, alongside strategic initiatives in lending and deposit gathering [1][2]. Financial Performance - Net income for Q2 2025 was $9.6 million, or $0.24 per diluted share, up from $7.9 million ($0.19 per share) in Q1 2025 and $6.0 million ($0.14 per share) in Q2 2024 [1][11]. - For the first half of 2025, net income totaled $17.4 million, or $0.43 per diluted share, compared to $12.2 million ($0.29 per share) in the same period of 2024 [1][3]. Net Interest Income - Net interest income for Q2 2025 increased by $5.7 million, or 19.9%, to $34.4 million, driven by a decrease in interest expense and an increase in interest income [12][14]. - For the first half of 2025, net interest income rose by $9.6 million, or 17.0%, to $66.2 million, attributed to lower funding costs and higher yields on loans and securities [4][6]. Provision for Credit Losses - The provision for credit losses on loans increased by $2.7 million to $2.1 million in Q2 2025, primarily due to a worsening macroeconomic forecast [15][22]. - For the first half of 2025, the provision increased by $4.9 million to $4.7 million, reflecting higher general reserves and specific reserves [7][11]. Non-Interest Income and Expense - Non-interest income for Q2 2025 rose by $1.7 million, or 58.3%, to $4.5 million, mainly due to increased gains on trading securities and bank-owned life insurance [16][23]. - Non-interest expense remained stable at $23.0 million for Q2 2025, with a slight increase attributed to higher compensation and employee benefits [17][24]. Tax Expense - The income tax expense for Q2 2025 was $4.3 million, compared to $3.2 million in Q2 2024, with an effective tax rate of 31.0% [18][25]. Financial Condition - Total assets increased by $12.9 million, or 0.2%, to $5.68 billion as of June 30, 2025, primarily due to an increase in available-for-sale debt securities [26]. - Loans held-for-investment decreased by $101.6 million, or 2.5%, to $3.92 billion, reflecting a strategic focus on managing concentration risk [28][33]. Deposits and Borrowings - Total deposits decreased by $152.3 million, or 3.7%, to $3.99 billion, with a significant drop in brokered deposits [37]. - Borrowed funds increased to $893.5 million, primarily due to an increase in borrowings under an overnight line of credit [39]. Stockholder Equity - Total stockholders' equity increased by $5.6 million to $710.3 million, driven by net income and an increase in accumulated other comprehensive income [40].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Northfield Bancorp (NFBK) currently holding a Momentum Style Score of A [2] - The Zacks Rank system complements the Style Scores, with NFBK rated 1 (Strong Buy), indicating strong potential for outperformance [3] Group 2: Performance Metrics - NFBK shares have increased by 4.88% over the past week, outperforming the Zacks Financial - Savings and Loan industry, which rose by 0.95% [5] - Over a longer timeframe, NFBK shares have gained 1.14% in the past quarter and 21.09% in the last year, while the S&P 500 has seen declines of -2.56% and gains of 11.12%, respectively [6] - The average 20-day trading volume for NFBK is 160,533 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - Recent earnings estimate revisions for NFBK show positive trends, with two estimates moving higher for the full year, raising the consensus estimate from $0.82 to $0.90 [9] - For the next fiscal year, two estimates have also increased, with no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, NFBK is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a promising investment opportunity [11]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides comprehensive financial data, including statements, notes, management's analysis, and market risk disclosures for the quarter [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Northfield Bancorp's unaudited consolidated financial statements for Q1 2025, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time Consolidated Balance Sheet Highlights (In thousands) | Metric | March 31, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------- | :------------- | :---------------- | :-------------------------- | | Total Assets | $5,710,000 | $5,666,378 | +$43,622 | | Total Liabilities | $4,998,851 | $4,961,682 | +$37,169 | | Total Stockholders' Equity | $711,149 | $704,696 | +$6,453 | | Cash and due from banks | $12,523 | $13,043 | -$520 | | Total cash and cash equivalents | $101,662 | $167,744 | -$66,082 | | Debt securities available-for-sale | $1,246,473 | $1,100,817 | +$145,656 | | Loans held-for-investment | $3,991,529 | $4,022,224 | -$30,695 | | Deposits | $4,131,956 | $4,138,477 | -$6,521 | | FHLB advances and other borrowings | $709,159 | $666,402 | +$42,757 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) This section details the company's financial performance, including net income and comprehensive income, over a period Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, In thousands, except per share data) | Metric | 2025 | 2024 | Change (YoY) | | :----------------------------------- | :----- | :----- | :----------- | | Total interest income | $60,092 | $58,648 | +$1,444 | | Total interest expense | $28,301 | $30,764 | -$2,463 | | Net interest income | $31,791 | $27,884 | +$3,907 | | Provision for credit losses | $2,582 | $415 | +$2,167 | | Total non-interest income | $3,022 | $3,381 | -$359 | | Total non-interest expense | $21,435 | $22,332 | -$897 | | Income before income tax expense | $10,796 | $8,518 | +$2,278 | | Income tax expense | $2,920 | $2,304 | +$616 | | Net income | $7,876 | $6,214 | +$1,662 | | Basic Net income per common share | $0.19 | $0.15 | +$0.04 | | Diluted Net income per common share | $0.19 | $0.15 | +$0.04 | | Other comprehensive income, net of tax | $8,128 | $743 | +$7,385 | | Comprehensive income | $16,004 | $6,957 | +$9,047 | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) This section outlines changes in equity accounts, including net income, dividends, and stock repurchases Key Changes in Stockholders' Equity (Three Months Ended March 31, In thousands) | Metric | March 31, 2025 | March 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Balance at December 31, 2024/2023 | $704,696 | $699,445 | | Net income | $7,876 | $6,214 | | Other comprehensive income, net of tax | $8,128 | $743 | | Cash dividends declared and paid | $(5,387) | $(5,563) | | Repurchase of treasury stock | $(5,000) | $(3,090) | | Balance at March 31, 2025/2024 | $711,149 | $698,429 | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section reports cash flows from operating, investing, and financing activities over a period Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, In thousands) | Cash Flow Activity | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Net cash provided by operating activities | $9,426 | $4,237 | | Net cash used in investing activities | $(106,346) | $(239,423) | | Net cash provided by financing activities | $30,838 | $244,461 | | Net (decrease) increase in cash and cash equivalents | $(66,082) | $9,275 | | Cash and cash equivalents at end of period | $101,662 | $238,781 | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information for the consolidated financial statements [Note 1 – Consolidated Financial Statements](index=10&type=section&id=Note%201%20%E2%80%93%20Consolidated%20Financial%20Statements) This note outlines consolidation basis, accounting policies, and recent accounting pronouncement adoptions - The consolidated financial statements include Northfield Bancorp, Inc. and its wholly-owned subsidiaries. **Management's estimates**, particularly for **allowance for credit losses** and **deferred tax assets**, are crucial for fair presentation. The Company adopted **ASU No. 2023-07**, 'Improvements to Reportable Segment Disclosure,' retrospectively for the annual period ending December 31, 2024, which **enhanced segment expense disclosures without impacting financial position or results**[24](index=24&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk) [Note 2 – Debt Securities Available-for-Sale](index=11&type=section&id=Note%202%20%E2%80%93%20Debt%20Securities%20Available-for-Sale) This note details the composition, fair value, and unrealized gains or losses of available-for-sale debt securities Debt Securities Available-for-Sale (In thousands) | Category | March 31, 2025 Amortized Cost | March 31, 2025 Estimated Fair Value | Dec 31, 2024 Amortized Cost | Dec 31, 2024 Estimated Fair Value | | :----------------------------------- | :----------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | U.S. Government agency securities | $670 | $608 | $75,734 | $75,348 | | Mortgage-backed securities | $1,228,405 | $1,211,803 | $1,016,790 | $989,019 | | Other debt securities | $34,748 | $34,062 | $37,253 | $36,450 | | Total debt securities available-for-sale | $1,263,823 | $1,246,473 | $1,129,777 | $1,100,817 | Gross Unrealized Losses on AFS Debt Securities (In thousands) | Category | March 31, 2025 Unrealized Losses | March 31, 2025 Estimated Fair Value | Dec 31, 2024 Unrealized Losses | Dec 31, 2024 Estimated Fair Value | | :----------------------------------- | :------------------------------- | :-------------------------------- | :------------------------------- | :-------------------------------- | | U.S. Government agency securities | $(62) | $608 | $(386) | $75,348 | | Mortgage-backed securities | $(22,955) | $1,211,803 | $(29,002) | $989,019 | | Other debt securities | $(815) | $34,062 | $(938) | $36,450 | | Total | $(23,832) | $1,246,473 | $(30,326) | $1,100,817 | - The Company recognized **net losses of $299,000** on trading securities for the three months ended March 31, 2025, compared to **net gains of $699,000** for the same period in 2024. **No allowance for credit losses** was recorded on available-for-sale debt securities as of March 31, 2025, or December 31, 2024[35](index=35&type=chunk)[39](index=39&type=chunk) [Note 3 – Debt Securities Held-to-Maturity](index=13&type=section&id=Note%203%20%E2%80%93%20Debt%20Securities%20Held-to-Maturity) This note describes debt securities intended to be held until maturity, including their carrying and fair values Debt Securities Held-to-Maturity (In thousands) | Category | March 31, 2025 Amortized Cost | March 31, 2025 Estimated Fair Value | Dec 31, 2024 Amortized Cost | Dec 31, 2024 Estimated Fair Value | | :--------------------------- | :----------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | Mortgage-backed securities | $8,883 | $8,497 | $9,303 | $8,762 | - Debt securities held-to-maturity with a carrying value of **$8.7 million** at March 31, 2025, were **pledged to secure borrowings and deposits**. **No allowance for credit losses** has been recorded for these securities, as they are **backed by the U.S. Government**[44](index=44&type=chunk)[46](index=46&type=chunk) [Note 4 – Equity Securities](index=14&type=section&id=Note%204%20%E2%80%93%20Equity%20Securities) This note provides details on the company's equity security holdings, including money market funds and private investments Equity Securities (In thousands) | Category | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Money market mutual funds | $855 | $4,300 | | Investment in private SBA loan fund | $10,000 | $10,000 | | Total Equity Securities | $10,855 | $14,300 | [Note 5 – Loans](index=15&type=section&id=Note%205%20%E2%80%93%20Loans) This note presents a detailed breakdown of the loan portfolio, including types, non-accrual status, and impaired loans Loans Held-for-Investment (In thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Multifamily | $2,567,913 | $2,597,484 | | Commercial mortgage | $882,600 | $889,801 | | One-to-four family residential mortgage | $146,791 | $150,217 | | Home equity and lines of credit | $181,354 | $174,062 | | Construction and land | $40,284 | $35,897 | | Commercial and industrial loans | $162,133 | $163,425 | | Other loans | $1,411 | $2,165 | | Total loans held-for-investment | $3,991,529 | $4,022,224 | - PCD loans totaled **$9.0 million** at March 31, 2025, primarily from a FDIC-assisted transaction, consisting of home equity, commercial real estate, commercial and industrial, and one-to-four family residential loans[51](index=51&type=chunk) Non-Accrual Loans (Excluding PCD loans, In thousands) | Loan Type | March 31, 2025 Recorded Investment | December 31, 2024 Recorded Investment | | :----------------------------------- | :--------------------------------- | :---------------------------------- | | Multifamily | $2,565 | $2,609 | | Commercial mortgage | $4,565 | $4,578 | | Home equity and lines of credit | $1,267 | $1,270 | | Commercial and industrial | $4,972 | $5,807 | | Total non-accrual loans | $13,369 | $14,264 | - Collateral-dependent impaired loans amounted to **$7.9 million** at March 31, 2025, secured by real estate, inventory, and equipment. Loan modifications made to borrowers experiencing financial difficulty during Q1 2025 totaled **$209,000**, primarily involving payment delays for commercial and industrial loans[75](index=75&type=chunk)[78](index=78&type=chunk) [Note 6 – Allowance for Credit Losses ("ACL") on Loans](index=25&type=section&id=Note%206%20%E2%80%93%20Allowance%20for%20Credit%20Losses%20(%22ACL%22)%20on%20Loans) This note explains methodologies and activity for allowance for credit losses on loans and off-balance sheet exposures - The Company uses a **risk rating migration model** for collectively evaluated loans, adjusted for qualitative factors and five Moody's Analytics economic scenarios. Individually evaluated loans (TDRs and non-accrual loans ≥ **$500,000**) are assessed based on collateral fair value or expected future cash flows[83](index=83&type=chunk)[84](index=84&type=chunk)[87](index=87&type=chunk) Allowance for Credit Losses Activity (Three Months Ended March 31, In thousands) | Metric | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Beginning balance | $35,183 | $37,535 | | Charge-offs | $(3,098) | $(950) | | Recoveries | $254 | $39 | | Provisions (credit) | $2,582 | $415 | | Ending balance | $34,921 | $37,039 | Allowance for Credit Losses for Off-Balance Sheet Exposures (In thousands) | Metric | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Balance at beginning of period | $518 | $236 | | Provision for credit losses | $103 | $83 | | Balance at end of period | $621 | $319 | [Note 7 – Deposits](index=29&type=section&id=Note%207%20%E2%80%93%20Deposits) This note provides a breakdown of deposit account balances and the associated interest expense by type Deposit Account Balances (In thousands) | Deposit Type | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Non-interest-bearing checking | $722,994 | $706,976 | | NOW and interest-bearing checking | $1,367,219 | $1,286,154 | | Savings and money market | $1,171,240 | $1,176,308 | | Certificates of deposit | $870,503 | $969,039 | | Total deposits | $4,131,956 | $4,138,477 | Interest Expense on Deposit Accounts (Three Months Ended March 31, In thousands) | Deposit Type | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | NOW, interest-bearing checking, savings, and money market | $12,148 | $12,331 | | Certificates of deposit | $9,043 | $6,942 | | Total interest expense on deposit accounts | $21,191 | $19,273 | [Note 8 – Subordinated Debt](index=29&type=section&id=Note%208%20%E2%80%93%20Subordinated%20Debt) This note details the terms and carrying value of the company's subordinated debt instruments - The Company issued **$62.0 million** in fixed-to-floating subordinated notes maturing June 30, 2032, with a fixed interest rate of **5.00%** until June 30, 2027, then resetting quarterly to three-month SOFR plus **200 basis points**. Subordinated debt, net of issuance costs, totaled **$61.5 million** at March 31, 2025[96](index=96&type=chunk) [Note 9 – Equity Incentive Plans](index=29&type=section&id=Note%209%20%E2%80%93%20Equity%20Incentive%20Plans) This note outlines the company's stock option activity, restricted stock awards, and related compensation expenses Stock Options Outstanding (March 31, 2025) | Metric | Number of Stock Options | Weighted Average Exercise Price | | :----------------------------------- | :---------------------- | :------------------------------ | | Outstanding and Exercisable - Dec 31, 2024 | 701,103 | $15.09 | | Forfeited | (2,500) | $14.76 | | Outstanding and Exercisable - Mar 31, 2025 | 698,603 | $15.09 | - During Q1 2025, the Company granted **232,003 restricted stock awards** (**$2.7 million** fair value) and **59,735 performance-based restricted stock units** (**$697,000** fair value). Stock-based compensation expense was **$765,000** for the three months ended March 31, 2025, up from **$620,000** in 2024[98](index=98&type=chunk)[102](index=102&type=chunk) [Note 10 – Fair Value Measurements](index=30&type=section&id=Note%2010%20%E2%80%93%20Fair%20Value%20Measurements) This note explains the fair value hierarchy and provides measurements for financial assets and liabilities - The Company classifies financial assets and liabilities into a fair value hierarchy (**Level 1, 2, or 3**) based on the observability of inputs. Debt securities available-for-sale are primarily **Level 2**, while trading securities and publicly traded equity securities are **Level 1**. Loans individually evaluated for impairment are classified as **Level 3**[103](index=103&type=chunk)[105](index=105&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) Fair Value Measurements of Financial Assets (March 31, 2025, In thousands) | Asset Category | Carrying Value | Level 1 | Level 2 | Level 3 | | :----------------------------------- | :------------- | :------ | :-------- | :------ | | Debt securities available-for-sale | $1,246,473 | — | $1,246,473 | — | | Trading securities | $13,003 | $13,003 | — | — | | Equity securities (publicly traded) | $855 | $855 | — | — | | Loans individually evaluated for impairment | $4,606 | — | — | $4,606 | Fair Value Measurements of Financial Liabilities (March 31, 2025, In thousands) | Liability Category | Carrying Value | Level 1 | Level 2 | Level 3 | | :----------------------------------- | :------------- | :------ | :-------- | :------ | | Deposits | $4,131,956 | — | $4,132,992 | — | | FHLB advances and other borrowings | $709,159 | — | $638,483 | — | | Subordinated debentures | $61,498 | — | $46,016 | — | [Note 11 – Earnings Per Share](index=38&type=section&id=Note%2011%20%E2%80%93%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share for common stockholders Earnings Per Share Calculation (Three Months Ended March 31, In thousands, except per share data) | Metric | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Net income available to common stockholders | $7,876 | $6,214 | | Weighted average shares outstanding-basic | 40,864,529 | 42,367,243 | | Weighted average shares outstanding-diluted | 40,922,829 | 42,408,953 | | Earnings per share-basic | $0.19 | $0.15 | | Earnings per share-diluted | $0.19 | $0.15 | | Anti-dilutive shares | 1,087,489 | 1,860,882 | [Note 12 – Leases](index=38&type=section&id=Note%2012%20%E2%80%93%20Leases) This note provides information on operating leases, including right-of-use assets, liabilities, and costs - All of the Company's leases are **operating leases**, with right-of-use assets of **$27.3 million** and lease liabilities of **$31.6 million** at March 31, 2025. Total net lease cost for the three months ended March 31, 2025, was **$2.66 million**[136](index=136&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) Lease Payment Obligations (In thousands) | Year | Amount | | :--- | :----- | | 2025 | $4,715 | | 2026 | $5,599 | | 2027 | $4,645 | | 2028 | $4,387 | | 2029 | $2,922 | | Thereafter | $17,286 | | Total lease payments | $39,554 | [Note 13 – Derivatives](index=39&type=section&id=Note%2013%20%E2%80%93%20Derivatives) This note describes the company's derivative instruments, their notional amounts, and fair value recognition - The Company had **13 interest rate swaps** with a notional amount of **$94.0 million** at March 31, 2025. These derivatives are not used for hedge accounting and changes in fair value are recognized directly in earnings[141](index=141&type=chunk)[142](index=142&type=chunk) Fair Value of Derivatives (In thousands) | Balance Sheet Location | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Other assets | $4,690 | $5,149 | | Other liabilities | $4,695 | $5,152 | [Note 14 – Segment Information](index=40&type=section&id=Note%2014%20%E2%80%93%20Segment%20Information) This note identifies the company's single reportable segment and how its performance is evaluated by management - The Company operates as a **single reportable segment**, 'Banking Segment,' which primarily involves originating loans and offering deposit products. The Chief Operating Decision Maker (CODM) evaluates performance using consolidated net income, revenue streams, and significant expenses[144](index=144&type=chunk)[145](index=145&type=chunk) Banking Segment Performance (Three Months Ended March 31, In thousands) | Metric | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Interest income | $60,092 | $58,648 | | Other revenues - non-interest income | $3,022 | $3,381 | | Total consolidated revenues | $63,114 | $62,029 | | Segment net income | $7,876 | $6,214 | | Segment assets | $5,710,000 | $5,666,378 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=41&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial performance, condition, and key trends [Cautionary Statement Regarding Forward-Looking Statements](index=41&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This statement warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ - The report contains **forward-looking statements** based on management's current beliefs and expectations, which are subject to significant business, economic, and competitive uncertainties. Factors that could cause actual results to differ materially include general economic conditions, interest rate changes, competition, regulatory changes, and credit quality[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) [Critical Accounting Policies](index=42&type=section&id=Critical%20Accounting%20Policies) This section identifies complex accounting policies requiring significant management judgment and estimates - The most critical accounting policies involve methodologies for determining the **allowance for credit losses on loans** and the **valuation allowance against deferred tax assets**, due to their complexity, subjective judgments, and reliance on estimates and assumptions about uncertain matters[151](index=151&type=chunk)[155](index=155&type=chunk) [Overview](index=43&type=section&id=Overview) This section provides a high-level summary of the company's key financial performance metrics for the period Key Financial Performance Metrics (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :----------------------------------- | :----- | :----- | :----------- | | Net income | $7.9M | $6.2M | +$1.7M | | Basic and diluted EPS | $0.19 | $0.15 | +$0.04 | | Return on average assets | 0.56% | 0.43% | +0.13 pp | | Return on average stockholders' equity | 4.52% | 3.59% | +0.93 pp | [Comparison of Financial Condition at March 31, 2025 and December 31, 2024](index=43&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031%2C%202025%20and%20December%2031%2C%202024) This section analyzes changes in the company's balance sheet, including assets, liabilities, and equity - Total assets increased by **$43.6 million** (**0.8%**) to **$5.71 billion**, driven by a **$145.7 million** increase in available-for-sale debt securities, partially offset by decreases in cash and cash equivalents (**$66.1 million**) and loans receivable (**$30.7 million**)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) Loans Held-for-Investment Changes (In millions) | Loan Type | March 31, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------- | :---------------- | :----- | | Multifamily | $2,570 | $2,600 | -$30 | | Commercial real estate | $882.6 | $889.8 | -$7.2 | | One-to-four family residential | $146.8 | $150.2 | -$3.4 | | Commercial and industrial | $162.1 | $163.4 | -$1.3 | | Home equity and lines of credit | $181.4 | $174.1 | +$7.3 | | Construction and land | $40.3 | $35.9 | +$4.4 | - Total liabilities increased by **$37.2 million** (**0.7%**) to **$5.00 billion**, primarily due to a **$42.8 million** increase in borrowings, partially offset by a **$6.5 million** decrease in total deposits. Brokered deposits decreased by **$140.1 million**, while non-brokered deposits increased by **$133.6 million**[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) - Total stockholders' equity increased by **$6.5 million** to **$711.1 million**, driven by net income and an increase in accumulated other comprehensive income, partially offset by **$5.0 million** in stock repurchases and **$5.4 million** in dividend payments. A new **$10.0 million** stock repurchase program was approved on April 24, 2025[171](index=171&type=chunk) [Comparison of Operating Results for the Three Months Ended March 31, 2025 and 2024](index=46&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) This section compares the company's income, expenses, and profitability for the current quarter against the prior year - Net income increased by **$1.7 million** to **$7.9 million**, primarily due to a **$3.9 million** increase in net interest income, partially offset by a **$2.2 million** increase in the provision for credit losses[172](index=172&type=chunk) - Net interest income increased by **$3.9 million** (**14.0%**) to **$31.8 million**, with net interest margin rising **35 basis points** to **2.38%**. This was driven by higher yields on mortgage-backed securities and loans, and a decrease in the cost of interest-bearing liabilities, particularly due to the repayment of BTFP borrowings[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - The provision for credit losses on loans increased by **$2.2 million** to **$2.6 million**, mainly due to higher net charge-offs (**$2.8 million**, primarily from small business unsecured commercial and industrial loans), changes in model assumptions, and an increase in non-performing commercial and industrial loans[177](index=177&type=chunk) - Non-interest income decreased by **$359,000** (**10.6%**) to **$3.0 million**, primarily due to a **$998,000** decrease in gains on trading securities, partially offset by a **$675,000** increase in income on bank-owned life insurance[178](index=178&type=chunk) - Non-interest expense decreased by **$897,000** (**4.0%**) to **$21.4 million**, mainly due to a **$990,000** decrease in employee compensation and benefits (related to deferred compensation expense), and a **$268,000** decrease in advertising expense[179](index=179&type=chunk) Average Balances, Yields, and Rates (Three Months Ended March 31) | Metric | 2025 Average Balance | 2025 Average Yield/Rate | 2024 Average Balance | 2024 Average Yield/Rate | | :----------------------------------- | :------------------- | :---------------------- | :------------------- | :---------------------- | | Total interest-earning assets | $5,413,975 | 4.50% | $5,517,942 | 4.27% | | Total interest-bearing liabilities | $4,183,119 | 2.74% | $4,288,744 | 2.89% | | Net interest rate spread | | 1.76% | | 1.38% | | Net interest margin | | 2.38% | | 2.03% | [Asset Quality](index=49&type=section&id=Asset%20Quality) This section assesses credit risk within the loan portfolio, including non-performing loans, delinquencies, and collateral - PCD loans totaled **$9.0 million** at March 31, 2025, with **2.1%** past due 30-89 days and **25.2%** past due 90 days or more[185](index=185&type=chunk) Non-Performing Loans and Assets (In thousands) | Metric | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Total non-accrual loans held-for-investment | $13,369 | $14,264 | | Total loans delinquent 90 days or more and still accruing held-for-investment | $1,018 | $1,186 | | Total non-performing loans held-for-sale | $4,897 | $4,897 | | Total non-performing loans | $19,284 | $20,347 | | Total non-performing assets | $19,284 | $20,347 | | Non-performing loans to total loans | 0.48% | 0.51% | | Non-performing assets to total assets | 0.34% | 0.36% | Accruing Loans 30 to 89 Days Delinquent (In thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Multifamily | $1,296 | $2,831 | | Commercial mortgage | $147 | $78 | | One-to-four family residential | $2,584 | $2,407 | | Home equity and lines of credit | $1,141 | $1,472 | | Commercial and industrial loans | $1,674 | $2,545 | | Other loans | $3 | $3 | | Total delinquent accruing loans held-for-investment | $6,845 | $9,336 | - Rent-regulated multifamily loans in New York totaled **$435.8 million** (**10.9%** of total loan portfolio) at March 31, 2025, with a weighted average LTV of **50.6%** and DSCR of **1.59x**. None of these loans are interest-only[189](index=189&type=chunk)[190](index=190&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's funding sources, liquidity position, and capital adequacy ratios - The Bank's primary funding sources include deposits, loan/security payments, and borrowed funds. It has additional funding capacity of approximately **$1.67 billion** from FHLBNY and **$281,000** from the FRB Discount Window[193](index=193&type=chunk)[195](index=195&type=chunk) - Estimated net uninsured deposits were **$934.7 million** (**22.6%** of total deposits) at March 31, 2025, up from **$896.5 million** (**21.7%**) at December 31, 2024[196](index=196&type=chunk) Community Bank Leverage Ratio (CBLR) | Entity | March 31, 2025 CBLR | December 31, 2024 CBLR | Minimum for Capital Adequacy | | :----------------------------------- | :-------------------- | :--------------------- | :--------------------------- | | Northfield Bank | 12.62% | 12.46% | 9.00% | | Northfield Bancorp, Inc. | 12.08% | 12.11% | 9.00% | [Off-Balance Sheet Arrangements and Contractual Obligations](index=53&type=section&id=Off-Balance%20Sheet%20Arrangements%20and%20Contractual%20Obligations) This section describes the company's off-balance sheet commitments and their potential financial impact - The Company has off-balance sheet arrangements primarily related to lending commitments, with a reserve for commitments to fund unused lines of credit of **$621,000** at March 31, 2025. These arrangements are not expected to materially impact financial results[202](index=202&type=chunk)[203](index=203&type=chunk) [Accounting Pronouncements Not Yet Adopted](index=53&type=section&id=Accounting%20Pronouncements%20Not%20Yet%20Adopted) This section outlines new accounting standards issued but not yet implemented by the company - The Company is monitoring new FASB ASUs: **ASU No. 2023-09** ('Improvements to Income Tax Disclosures') effective for fiscal years beginning after December 15, 2024, and **ASU No. 2024-03** ('Expense Disaggregation Disclosures') effective for fiscal years beginning after December 15, 2026. Neither is expected to have a **material impact** on the consolidated financial statements[205](index=205&type=chunk)[206](index=206&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=54&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details market risk management, primarily interest rate risk, and quantifies impacts on NPV and NII [Management of Market Risk](index=54&type=section&id=Management%20of%20Market%20Risk) This section describes strategies and governance for managing market risks, especially interest rate risk - The Company's primary market risk is **interest rate risk**, managed by a Management Asset-Liability Committee. Strategies include shortening asset terms, originating variable-rate loans, investing in corporate and mortgage-backed securities, and utilizing lower-cost core deposits and longer-term FHLB advances[207](index=207&type=chunk)[208](index=208&type=chunk)[212](index=212&type=chunk) [Net Portfolio Value and Net Interest Income Analysis](index=54&type=section&id=Net%20Portfolio%20Value%20and%20Net%20Interest%20Income%20Analysis) This section quantifies the impact of interest rate changes on Net Portfolio Value and Net Interest Income - The Company analyzes interest rate sensitivity using **Net Portfolio Value (NPV)** and **Net Interest Income (NII)** models, simulating instantaneous and sustained interest rate changes. At March 31, 2025, a **400 basis point increase** would decrease NPV by **19.95%** and year-one NII by **15.30%**, while a **400 basis point decrease** would increase NPV by **8.33%** and year-one NII by **2.77%**[209](index=209&type=chunk)[210](index=210&type=chunk)[213](index=213&type=chunk) - The Company was in compliance with all Board-approved interest rate risk management policies at March 31, 2025, and December 31, 2024[213](index=213&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=56&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes to internal control [Disclosure Controls and Procedures](index=56&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms management's evaluation of the effectiveness of disclosure controls and procedures - Management concluded that the Company's **disclosure controls and procedures were effective** as of March 31, 2025[216](index=216&type=chunk) [Internal Control Over Financial Reporting](index=56&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) This section reports on any changes in the company's internal control over financial reporting during the period - There were **no changes** in the Company's internal control over financial reporting during the three months ended March 31, 2025, that materially affected or are reasonably likely to materially affect it[217](index=217&type=chunk) [PART II - OTHER INFORMATION](index=57&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section includes disclosures on legal proceedings, risk factors, equity transactions, and other information [ITEM 1. LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The Company is involved in legal actions, but their resolution is not expected to materially affect financial condition or results - Resolution of current legal actions is **not expected to have a material adverse effect** on the Company's consolidated financial condition or results of operations[219](index=219&type=chunk) [ITEM 1A. RISK FACTORS](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were identified during the quarter, beyond those previously disclosed in the Annual Report - **No material changes** to risk factors were identified during the quarter ended March 31, 2025, beyond those previously disclosed[220](index=220&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) This section details stock repurchase activities, including program completion and approval, and confirms no unregistered equity sales [Repurchases of Our Equity Securities](index=57&type=section&id=Repurchases%20of%20Our%20Equity%20Securities) This section details common stock repurchase programs and shares withheld for tax purposes - The Company completed a **$5.0 million** stock repurchase program during Q1 2025, repurchasing **440,150 shares** at an average price of **$11.36**. A new **$10.0 million** stock repurchase program was approved on April 24, 2025, with no expiration date[221](index=221&type=chunk) Common Stock Repurchases (Three Months Ended March 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------------------- | :----------------------------- | :--------------------------- | | March 1, 2025 to March 31, 2025 | 440,150 | $11.36 | | Total | 440,150 | $11.36 | - Additionally, **19,177 shares** were withheld to cover income taxes upon the vesting of restricted stock awards during February 2025, at an average price of **$11.71**[223](index=223&type=chunk)[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no unregistered sales of equity securities during the reporting period - There were **no sales of unregistered securities** during the period covered by this report, and the use of proceeds is not applicable[224](index=224&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=58&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The Company reported no defaults upon senior securities during the period - There were **no defaults upon senior securities**[226](index=226&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=58&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Mine safety disclosures are not applicable to the Company - **Mine safety disclosures are not applicable**[227](index=227&type=chunk) [ITEM 5. OTHER INFORMATION](index=58&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended March 31, 2025 - **No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements** during the three months ended March 31, 2025[228](index=228&type=chunk) [ITEM 6. EXHIBITS](index=58&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications and XBRL-related documents - The report includes certifications from the CEO and CFO (Exhibits **31.1, 31.2, 32**) and various XBRL (Extensible Business Reporting Language) documents (Exhibits **101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104**)[229](index=229&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) The report is duly signed by the authorized officers of Northfield Bancorp, Inc., including the CEO and CFO - The report is signed by **Steven M. Klein**, Chairman, President and Chief Executive Officer, and **William R. Jacobs**, Executive Vice President and Chief Financial Officer, on May 9, 2025[232](index=232&type=chunk)

Financial Performance - Net income for Q1 2025 was $7.9 million, or $0.19 per diluted share, down from $11.3 million, or $0.27 per diluted share in Q4 2024, but up from $6.2 million, or $0.15 per diluted share in Q1 2024 [3]. - Non-interest income decreased by $359,000, or 10.6%, to $3.0 million in Q1 2025, primarily due to a decrease in gains on sales of trading securities [10]. - Non-interest expense decreased by $897,000, or 4.0%, to $21.4 million in Q1 2025, mainly due to a reduction in employee compensation and benefits [11]. - The Company recorded an income tax expense of $2.9 million for Q1 2025, with an effective tax rate of 27.0%, up from 19.2% in Q4 2024 [21]. - Net income for the first quarter of 2025 was $7,876, up 26.8% from $6,214 in the previous quarter [57]. - Basic net income per share increased to $0.19 from $0.15, reflecting a growth of 26.7% [57]. Asset and Liability Management - Total assets increased by $43.6 million, or 0.8%, to $5.71 billion as of March 31, 2025, primarily due to a $145.7 million increase in available-for-sale debt securities [22]. - Total liabilities increased by $37.2 million, or 0.7%, to $5.00 billion, driven by a $42.8 million increase in borrowings [30]. - Total stockholders' equity increased by $6.5 million to $711.1 million, attributed to net income of $7.9 million for Q1 2025 [34]. - Cash and cash equivalents decreased by $66.1 million, or 39.4%, to $101.7 million as of March 31, 2025, due to deployment into higher-yielding mortgage-backed securities [23]. - The Company's available-for-sale debt securities portfolio increased by $145.7 million, or 13.2%, to $1.25 billion, with $1.21 billion consisting of residential mortgage-backed securities [28]. Loan and Deposit Activity - Deposits (excluding brokered) rose by $133.6 million, or 13.8% annualized, from December 31, 2024, with a cost of deposits at 1.94% [5]. - Loans decreased by $30.7 million, or 3.0% annualized, from December 31, 2024, primarily due to a decline in multifamily loans [5]. - Deposits decreased by $6.5 million, or 0.2%, to $4.13 billion, with brokered deposits down by $140.1 million, or 53.2% [31]. - Loans held-for-investment decreased by $30.7 million, or 0.8%, to $3.99 billion, with multifamily loans decreasing by $29.6 million, or 1.1% [24]. - The multifamily loan portfolio totaled $2.57 billion as of March 31, 2025, accounting for 64% of the total loan portfolio [43]. Credit Quality and Risk Management - The provision for credit losses on loans increased by $2.2 million to $2.6 million in Q1 2025, compared to $415,000 in Q1 2024, mainly due to higher net charge-offs [9]. - Total non-accrual loans decreased from $14.26 million on December 31, 2024, to $13.37 million on March 31, 2025, representing a reduction of 6.2% [39]. - Non-performing loans to total loans ratio improved from 0.51% at December 31, 2024, to 0.48% at March 31, 2025 [39]. - The allowance for credit losses to non-performing loans ratio increased to 242.73% as of March 31, 2025, from 214.83% in the previous quarter [51]. - Accruing loans 30 to 89 days delinquent decreased from $9.34 million on December 31, 2024, to $6.85 million on March 31, 2025, a decline of 26.6% [40]. Operational Efficiency - The efficiency ratio improved to 61.57% for the three months ended March 31, 2025, down from 71.43% in the previous quarter [51]. - Net interest margin increased to 2.38% in Q1 2025, compared to 2.18% in Q4 2024 and 2.03% in Q1 2024, driven by lower funding costs and higher yields on interest-earning assets [5]. - Net interest income for the three months ended March 31, 2025, was $31,791, an increase of 6.4% from $29,685 in the previous quarter [57]. - Total interest income rose to $60,092, an increase of 2.5% from $58,648 in the previous quarter [57]. Shareholder Returns - The Board of Directors declared a cash dividend of $0.13 per common share, payable on May 21, 2025 [5]. - A $10.0 million share repurchase plan was approved on April 23, 2025, following the completion of a previous $5.0 million plan [5]. - Tangible book value per share improved to $15.70 from $15.46, reflecting a positive trend in shareholder value [55].

Company Performance - Northfield Bancorp (NFBK) reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and up from $0.15 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $34.81 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.51%, compared to year-ago revenues of $31.27 million [2] - Over the last four quarters, Northfield has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Northfield shares have declined approximately 14.3% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.20 on revenues of $34.11 million, and for the current fiscal year, it is $0.82 on revenues of $138.46 million [7] Industry Context - The Financial - Savings and Loan industry, to which Northfield belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Northfield Bancorp, Inc. reported a net income of $7.9 million for Q1 2025, a decrease from $11.3 million in Q4 2024, but an increase from $6.2 million in Q1 2024, primarily driven by higher net interest income despite an increase in credit loss provisions [2][4][13]. Financial Performance - Net income for Q1 2025 was $7.9 million, or $0.19 per diluted share, compared to $11.3 million, or $0.27 per diluted share in Q4 2024, and $6.2 million, or $0.15 per diluted share in Q1 2024 [2][6]. - Net interest income increased by $3.9 million, or 14.0%, to $31.8 million in Q1 2025 from $27.9 million in Q1 2024, due to lower funding costs and higher yields on interest-earning assets [5][8]. - The net interest margin improved to 2.38% in Q1 2025 from 2.03% in Q1 2024, reflecting lower funding costs and higher yields [6][15]. Operational Highlights - The provision for credit losses on loans rose to $2.6 million in Q1 2025 from $415,000 in Q1 2024, attributed to higher net charge-offs and changes in model assumptions [9][17]. - Non-interest income decreased by $359,000, or 10.6%, to $3.0 million in Q1 2025, primarily due to a decline in gains on sales of trading securities [10]. - Non-interest expense decreased by $897,000, or 4.0%, to $21.4 million in Q1 2025, mainly due to lower employee compensation and benefits [11]. Asset Quality and Loans - Total assets increased by $43.6 million, or 0.8%, to $5.71 billion at March 31, 2025, driven by an increase in available-for-sale debt securities [21]. - Loans held-for-investment decreased by $30.7 million, or 0.8%, to $3.99 billion, primarily due to a reduction in multifamily loans [23]. - Non-performing loans to total loans improved to 0.48% at March 31, 2025, from 0.51% at December 31, 2024, indicating strong asset quality [6][38]. Capital Management - The Board of Directors declared a cash dividend of $0.13 per common share, payable on May 21, 2025 [3]. - The company approved a $10 million stock repurchase plan on April 23, 2025, following the completion of a previous $5 million plan [6][34]. - Total stockholders' equity increased by $6.5 million to $711.1 million at March 31, 2025, supported by net income and an increase in accumulated other comprehensive income [30][34].