Core Viewpoint - Columbia Financial, Inc. has announced a merger agreement to acquire Northfield Bancorp, Inc. for approximately $597 million, which will create the third largest regional bank in New Jersey with pro forma total assets of $18 billion as of December 31, 2025 [1]. Group 1: Merger Details - The merger will involve Columbia acquiring Northfield, with the transaction valued at around $597 million [1]. - Following the merger, Northfield will merge into a newly formed Holding Company immediately after Columbia's second-step conversion [4]. - The merger agreement stipulates that Northfield shareholders can choose to receive either shares of the Holding Company or cash, with specific conversion ratios based on the final Independent Valuation [4]. Group 2: Conversion and Reorganization - Columbia's Board of Directors has adopted a plan for a second-step conversion, which includes selling shares of the MHC to the public at $10.00 per share [2]. - The conversion will allow for the reorganization of Columbia Bank from a mutual holding company structure to a fully public stock holding company [2]. - Approximately 26.9% of Columbia's outstanding common shares will be converted into shares of the new Holding Company, while 73.1% held by the MHC will be cancelled [3]. Group 3: Financial Impact - The merger is expected to be 50% accretive to Columbia's earnings per share for 2027 based on a preliminary independent appraisal [5]. Group 4: Leadership and Governance - Post-merger, Thomas J. Kemly will remain as President and CEO of the Holding Company and Columbia Bank, while Steven M. Klein from Northfield will become Senior Executive Vice President and COO [6][7]. - The Board of Directors of the Holding Company will include members from both Columbia and Northfield [7]. Group 5: Timeline and Approvals - The completion of the merger and second-step conversion is anticipated to occur early in the third quarter of 2026, subject to regulatory approvals and stockholder consent [9].

Financial Performance - Net income for the nine months ended September 30, 2025, was $28.2 million, an increase of 50.8% compared to $18.7 million for the same period in 2024[165] - Basic and diluted earnings per share rose to $0.70 for the nine months ended September 30, 2025, compared to $0.45 for the same period in 2024, reflecting a 55.6% increase[165] - The return on average assets improved to 0.67% for the nine months ended September 30, 2025, compared to 0.43% for the same period in 2024[165] - The return on average stockholders' equity increased to 5.31% for the nine months ended September 30, 2025, up from 3.59% for the same period in 2024[165] - Net income increased to $28.2 million for the nine months ended September 30, 2025, compared to $18.7 million for the same period in 2024, reflecting a 50.8% year-over-year growth[180] - Net income for the quarter ended September 30, 2025, was $10.8 million, compared to $6.5 million for the same quarter in 2024[193] Asset and Liability Management - Total assets increased by $59.1 million, or 1.0%, to $5.73 billion at September 30, 2025, from $5.67 billion at December 31, 2024[166] - Total liabilities increased by $44.2 million, or 0.9%, to $5.01 billion at September 30, 2025, primarily due to a $213.7 million increase in borrowings[176] - Stockholders' equity increased by $14.9 million to $719.6 million at September 30, 2025, supported by net income and a decrease in accumulated other comprehensive loss[179] Loan Portfolio - Loans held-for-investment decreased by $121.9 million, or 3.0%, to $3.90 billion at September 30, 2025, primarily due to a decrease in multifamily real estate loans[170] - Multifamily loans decreased by $157.0 million, or 6.0%, to $2.44 billion at September 30, 2025, reflecting a strategic focus on managing concentration risk[170] - Home equity loans and lines of credit increased by $19.2 million, or 11.1%, to $193.3 million at September 30, 2025, driven by new originations and existing customers drawing down on their lines of credit[170] - Real estate loans accounted for 95.6% of the total loan portfolio, with multifamily loans at $2.44 billion (62.6%) and commercial mortgage loans at $894.5 million (22.9%) as of September 30, 2025[171] - Non-performing loans totaled $19.1 million at September 30, 2025, representing 0.49% of total loans, a slight decrease from 0.51% at December 31, 2024[205] Income and Expenses - Interest income rose by $7.3 million, or 4.1%, to $185.5 million for the nine months ended September 30, 2025, driven by a 25 basis point increase in yield on interest-earning assets[181] - Interest expense decreased by $8.6 million, or 9.2%, to $84.8 million for the nine months ended September 30, 2025, compared to $93.4 million for the same period in 2024[182] - Net interest income increased by $15.9 million, or 18.7%, to $100.7 million for the nine months ended September 30, 2025, primarily due to a 43 basis point increase in net interest margin to 2.50%[183] - Non-interest income increased by $2.5 million, or 25.0%, to $12.3 million for the nine months ended September 30, 2025, compared to $9.8 million for the same period in 2024[185] - Non-interest expense increased by $2.1 million, or 3.2%, to $67.8 million for the nine months ended September 30, 2025, compared to $65.7 million for the same period in 2024[186] Tax and Regulatory Compliance - The company recorded an income tax expense of $4.0 million for the quarter ended September 30, 2025, up from $2.4 million for the same quarter in 2024, with an effective tax rate of 27.3%[200] - Northfield Bank's CBLR was 12.64% as of September 30, 2025, exceeding the minimum requirement of 9.00%[223] Interest Rate Risk Management - As of September 30, 2025, a 400 basis point increase in interest rates would lead to a 17.72% decrease in estimated net portfolio value and an 11.67% decrease in net interest income for the first year[236] - The estimated present value of assets as of September 30, 2025, is $5,982,814 thousand, while the estimated present value of liabilities is $5,073,027 thousand, resulting in an estimated NPV of $909,787 thousand[235] - The NPV ratio at September 30, 2025, is 15.21%, indicating the company's ability to manage interest rate risk effectively[235] - The company complies with Board-approved policies regarding interest rate risk management, ensuring that projected net interest income does not decrease by more than 39% in the first year under a 400 basis point increase scenario[236] Funding and Liquidity - The Bank has the ability to obtain additional funding of approximately $1.67 billion from FHLBNY and FRBNY[216] - The Bank's liquidity management aims to ensure sufficient funds for financial commitments and new investments[213] - Estimated gross uninsured deposits at September 30, 2025, were $1.93 billion, with net uninsured deposits of approximately $944.6 million, or 23.8% of total deposits[218] Shareholder Actions - The Company repurchased 1.3 million shares of its common stock at an average price of $11.52 for a total of $15.0 million during the nine months ended September 30, 2025[179]

Financial Performance - Net income for Q3 2025 was $10.8 million, or $0.27 per diluted share, compared to $9.6 million, or $0.24 per diluted share in Q2 2025, and $6.5 million, or $0.16 per diluted share in Q3 2024[3] - Net income for the quarter ended September 30, 2025, was $10.8 million, an increase from $9.6 million in the previous quarter[20] - Net income for the three months ended September 30, 2025, was $10,751,000, a rise from $6,523,000 in the same period of 2024, representing an increase of 64.1%[66] - Basic net income per common share for the three months ended September 30, 2025, was $0.27, compared to $0.16 in the same period of 2024, reflecting a growth of 68.8%[66] Income and Expenses - Net interest income for Q3 2025 increased by $6.3 million, or 22.3%, to $34.5 million from $28.2 million in Q3 2024, driven by a 25 basis point increase in yield on interest-earning assets[14] - Non-interest income rose by $2.5 million, or 25.0%, to $12.3 million for the nine months ended September 30, 2025, compared to $9.8 million for the same period in 2024[10] - Non-interest income increased by $1.1 million, or 32.1%, to $4.7 million for the quarter ended September 30, 2025, driven by an increase in income on bank-owned life insurance and higher customer service fees[17] - Non-interest expense increased by $2.1 million, or 3.2%, to $67.8 million for the nine months ended September 30, 2025, compared to $65.7 million for the same period in 2024[11] - Non-interest expense rose by $3.0 million, or 14.7%, to $23.4 million for the quarter ended September 30, 2025, mainly due to a $2.1 million increase in employee compensation and benefits[18] - Total non-interest expense for the three months ended September 30, 2025, was $23,382,000, compared to $20,378,000 in the same period of 2024, indicating an increase of 14.8%[66] Asset and Liability Management - Total assets increased by $59.1 million, or 1.0%, to $5.73 billion at September 30, 2025, primarily due to a $230.1 million increase in available-for-sale debt securities[27] - Total assets as of September 30, 2025, were $5,671,166,000, a slight increase from $5,645,019,000 as of June 30, 2025[68] - Total liabilities increased by $44.2 million, or 0.9%, to $5.01 billion at September 30, 2025, from $4.96 billion at December 31, 2024[37] - Total liabilities decreased to $4,959,496 from $5,049,758, reflecting a reduction of approximately 1.78%[71] - Total stockholders' equity increased by $14.9 million to $719.6 million at September 30, 2025, from $704.7 million at December 31, 2024[42] - Total stockholders' equity rose to $719,599 thousand as of September 30, 2025, from $710,274 thousand as of June 30, 2025[64] Credit Quality - The provision for credit losses on loans increased by $3.4 million to $5.7 million for the nine months ended September 30, 2025, compared to $2.3 million for the same period in 2024[9] - Provision for credit losses on loans decreased by $1.5 million to $1.1 million for the quarter ended September 30, 2025, from $2.5 million for the same quarter in 2024, primarily due to lower net charge-offs of $299,000 compared to $2.1 million in the prior year[16] - The company reported a provision for credit losses of $1,069,000 for the three months ended September 30, 2025, down from $2,542,000 in the same period of 2024, indicating improved credit quality[66] - Asset quality remains strong with non-performing loans to total loans at 0.49% at September 30, 2025, compared to 0.36% at June 30, 2025[5] - Non-performing loans increased to $19.1 million at September 30, 2025, from $14.1 million at June 30, 2025[46] - Non-performing loans to total loans decreased to 0.49% as of September 30, 2025, compared to 0.75% a year earlier[60] Dividends and Shareholder Returns - Cash dividend declared was $0.13 per share, payable on November 19, 2025, to stockholders of record as of November 5, 2025[4] - The Company repurchased 1.3 million shares of its common stock at an average price of $11.52 for a total of $15.0 million during the nine months ended September 30, 2025[42] Market Position and Growth - The multifamily loan portfolio totaled $2.44 billion, or 63% of the total loan portfolio, as of September 30, 2025[52] - Estimated gross uninsured deposits at September 30, 2025, were $1.93 billion, with uninsured deposits approximately $944.6 million, or 23.8%, of total deposits[39] - The average yield on loans for the three months ended September 30, 2025, was 4.71%, slightly down from 4.74% in the previous quarter[68] - The yield on loans increased to 4.68% from 4.47%, representing a year-over-year increase of 4.69%[71]

Core Viewpoint - Northfield Bancorp, Inc. reported a significant increase in net income for the third quarter and the first nine months of 2025, driven by higher net interest income and effective management of expenses [1][12][20]. Financial Performance - For the three months ended September 30, 2025, net income was $10.8 million, or $0.27 per diluted share, compared to $6.5 million, or $0.16 per diluted share, for the same period in 2024, marking a 66.2% year-over-year increase [1][12]. - For the nine months ended September 30, 2025, net income totaled $28.2 million, or $0.70 per diluted share, up from $18.7 million, or $0.45 per diluted share, for the same period in 2024, representing a 50.3% increase [1][3]. Net Interest Income - Net interest income for the quarter increased by $6.3 million, or 22.3%, to $34.5 million compared to $28.2 million for the third quarter of 2024 [14]. - For the nine months ended September 30, 2025, net interest income rose by $15.9 million, or 18.7%, to $100.7 million from $84.8 million for the same period in 2024 [4][7]. Provision for Credit Losses - The provision for credit losses on loans increased by $3.4 million to $5.7 million for the nine months ended September 30, 2025, compared to $2.3 million for the same period in 2024 [8]. - For the quarter ended September 30, 2025, the provision for credit losses decreased by $1.5 million to $1.1 million from $2.5 million for the same quarter in 2024 [16]. Non-Interest Income and Expenses - Non-interest income increased by $2.5 million, or 25.0%, to $12.3 million for the nine months ended September 30, 2025, compared to $9.8 million for the same period in 2024 [9]. - Non-interest expense rose by $2.1 million, or 3.2%, to $67.8 million for the nine months ended September 30, 2025, compared to $65.7 million for the same period in 2024 [10]. Dividend Declaration - The Company declared a quarterly cash dividend of $0.13 per common share, payable on November 19, 2025, to stockholders of record on November 5, 2025 [2]. Asset Quality - As of September 30, 2025, non-performing loans to total loans stood at 0.49%, up from 0.36% at June 30, 2025, indicating a slight deterioration in asset quality [5]. Financial Condition - Total assets increased by $59.1 million, or 1.0%, to $5.73 billion at September 30, 2025, primarily due to an increase in available-for-sale debt securities [28]. - Total liabilities increased by $44.2 million, or 0.9%, to $5.01 billion at September 30, 2025, driven by an increase in borrowings [38]. Deposits - Total deposits decreased by $164.7 million, or 4.0%, to $3.97 billion at September 30, 2025, compared to $4.14 billion at December 31, 2024 [39].

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]