[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].

Credit Losses and Provisions - The allowance for credit losses decreased to $35.183 million in 2024 from $37.535 million in 2023, reflecting a reduction in the overall loan portfolio[82]. - Total charge-offs for 2024 amounted to $7.009 million, compared to $6.580 million in 2023, indicating an increase in credit losses[82]. - The provision for credit losses increased to $4.281 million in 2024 from $1.353 million in 2023, suggesting a more conservative approach to potential future losses[82]. - The allowance for credit losses to total non-performing loans ratio decreased to 227.72% in 2024 from 328.30% in 2023, indicating a decline in coverage for non-performing loans[82]. - The allowance for credit losses allocated to commercial mortgage loans was $20.949 million, representing 86.71% of total loans in that category as of December 31, 2024[85]. - The provision for credit losses was $4,281,000 in 2024, compared to $1,353,000 in 2023, reflecting a substantial increase in credit loss provisions[385]. - The allowance for credit losses on loans is determined based on historical portfolio loss experience, current borrower-specific risk characteristics, and forecasts of future economic conditions[418]. - The Company has identified key economic variables that correlate with historical credit performance, including Gross Domestic Product and unemployment rates[421]. - The allowance for credit losses for off-balance sheet credit exposures is adjusted for an average historical funding rate[425]. - The Company has ceased to recognize or measure new TDRs since the adoption of ASU 2022-02, but existing TDRs remain until settled[428]. Financial Performance - Net income for 2024 was $29,945,000, down from $37,669,000 in 2023, indicating a decrease of about 20.5%[385]. - Total assets increased to $5,666,378,000 in 2024 from $5,598,396,000 in 2023, reflecting a growth of approximately 1.22%[383]. - Net interest income after provision for credit losses decreased to $110,204,000 in 2024 from $123,314,000 in 2023, a decline of about 10.65%[385]. - Total interest income rose to $237,908,000 in 2024, up from $208,795,000 in 2023, representing an increase of approximately 13.93%[385]. - Non-interest income grew to $16,822,000 in 2024 from $11,896,000 in 2023, an increase of approximately 41.3%[385]. - Comprehensive income for 2024 was $41,505,000, a decline of 22.4% compared to $53,558,000 in 2023[387]. - The company reported a basic net income per common share of $0.72 in 2024, down from $0.86 in 2023, a decrease of about 16.28%[385]. Deposits and Funding - Brokered deposits increased significantly to $263.4 million in 2024 from $100.0 million in 2023, representing a 163.4% rise[100]. - Municipal deposits totaled $859.3 million at the end of 2024, accounting for 20.8% of total deposits, up from $768.6 million or 19.8% in 2023[100]. - Estimated uninsured deposits reached $1.82 billion in 2024, with adjusted uninsured deposits at $896.5 million, representing 21.7% of total deposits[101]. - Total deposits as of December 31, 2024, amounted to $3,890.2 million, with a year-over-year increase of 2.23% from $3,805.4 million in 2023[103]. - Non-interest bearing demand deposits decreased to $694.5 million, representing 17.85% of total deposits, down from 20.26% in 2023[103]. - NOW and interest-bearing demand deposits increased to $1,280.9 million, accounting for 32.93% of total deposits, with an average interest rate of 2.16%[103]. - The net increase in deposits for 2024 was $260,042,000, contrasting with a net decrease of $271,784,000 in 2023[392]. Securities and Investments - The corporate bond portfolio consisted mostly of investment-grade securities with remaining maturities generally shorter than ten years as of December 31, 2024[94]. - The fair value of the trading portfolio increased to $13.9 million in 2024 from $12.5 million in 2023, reflecting growth in mutual fund investments[95]. - As of December 31, 2024, total debt securities available-for-sale amounted to $1,129.8 million, an increase from $1,100.8 million in 2023, reflecting a growth of approximately 2.6%[96]. - The weighted average yield for securities available-for-sale was 4.26% based on fair value as of December 31, 2024[98]. - The company’s total debt securities available-for-sale included $734.1 million in GSE REMICs, showing stability compared to $727.3 million in 2023[96]. - The estimated fair value of mortgage-backed securities was $989.0 million as of December 31, 2024, down from $550.6 million in 2023[458]. - The Company recognized a total of $1,366 thousand in gross unrealized gains on debt securities available-for-sale as of December 31, 2024[458]. - The Company held nine pass-through mortgage-backed debt securities held-to-maturity in a continuous unrealized loss position of twelve months or greater at December 31, 2024[471]. Capital and Regulatory Compliance - The company exceeded all capital adequacy requirements as of December 31, 2024, and is categorized as a well-capitalized institution[126]. - Federal law requires federal bank regulators to take "prompt corrective action" for institutions not meeting minimum capital requirements, with five capital categories defined[128]. - An institution is deemed "well capitalized" if it has a total risk-based capital ratio of 10.0% or greater and a Tier 1 risk-based capital ratio of 8.0% or greater[128]. - Northfield Bancorp exceeded the FRB's consolidated capital requirements as of December 31, 2024[147]. - The FRB's "source of strength" doctrine requires holding companies to support their subsidiary depository institutions during financial stress[148]. - Northfield Bank is a member of the Deposit Insurance Fund, with deposit accounts insured by the FDIC up to $250,000 per account ownership category[137]. Stockholder Information - The total stockholders' equity increased to $704,696,000 in 2024 from $699,445,000 in 2023, a slight increase of approximately 0.36%[383]. - The company declared cash dividends of $0.52 per common share in both 2023 and 2024, totaling $21,826,000 in 2024[390]. - The number of shares outstanding decreased to 42,903,598 in 2024 from 44,524,929 in 2023[390]. - The average cost of treasury stock repurchased in 2024 was $10.24 per share, with a total repurchase of 1,802,072 shares[390]. - Stock compensation expense for 2024 was $2,341,000, compared to $2,383,000 in 2023, reflecting a slight decrease[390]. Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was $31,105,000, down from $46,970,000 in 2023, a decrease of about 34%[392]. - Total cash and cash equivalents at the end of 2024 were $167,744,000, compared to $229,506,000 at the end of 2023, reflecting a decrease of approximately 27%[392]. - The company reported a net cash used in investing activities of $118,491,000 in 2024, compared to a net cash provided of $193,869,000 in 2023[392]. - The company experienced a net cash provided by financing activities of $25,624,000 in 2024, compared to a net cash used of $57,132,000 in 2023[392]. - The company reported a net decrease in cash and cash equivalents of $61,762,000 in 2024, compared to an increase of $183,707,000 in 2023[392].

Financial Performance - Net income for Q4 2024 was $11.3 million, or $0.27 per diluted share, compared to $6.5 million, or $0.16 per diluted share in Q3 2024, and $8.2 million, or $0.19 per diluted share in Q4 2023[3]. - Non-interest income increased by $4.9 million, or 41.4%, to $16.8 million for the year ended December 31, 2024, from $11.9 million in 2023[9]. - Net interest income for the year ended December 31, 2024, decreased by $10.2 million, or 8.2%, to $114.5 million from $124.7 million in 2023[6]. - Net interest income increased by $1.5 million, or 5.2%, to $29.7 million for the quarter ended December 31, 2024, driven by a decrease in interest expense on deposits and borrowings[19]. - Non-interest income rose by $3.4 million, or 93.1%, to $7.0 million for the quarter ended December 31, 2024, primarily due to a $3.4 million gain on the sale of property[16]. - Net income for the quarter was $11,251 thousand, up from $8,222 thousand in the previous year, an increase of 37.06%[64]. - Basic net income per common share increased to $0.28, compared to $0.19 for the same period last year, an increase of 47.37%[64]. Asset and Liability Management - Total assets increased by $68.0 million, or 1.2%, to $5.67 billion at December 31, 2024, from $5.60 billion at December 31, 2023[25]. - Total liabilities increased by $62.7 million, or 1.3%, to $4.96 billion at December 31, 2024, compared to $4.90 billion at December 31, 2023[34]. - Total stockholders' equity increased by $5.3 million to $704.7 million at December 31, 2024, from $699.4 million at December 31, 2023[39]. - Total interest-earning assets increased to $5,413,769 million for the three months ended December 31, 2024, compared to $5,275,357 million for the same period in 2023, reflecting a growth of 2.63%[66]. - Total interest-bearing liabilities rose to $4,239,982 million for the year ended December 31, 2024, up from $3,990,894 million in 2023, an increase of 6.23%[70]. Credit Quality - The provision for credit losses on loans increased by $2.9 million to $4.3 million for the year ended December 31, 2024, compared to $1.4 million in 2023[8]. - Asset quality remains strong with non-performing loans to total loans at 0.51% compared to 0.75% at September 30, 2024[4]. - Non-performing loans totaled $20.3 million, or 0.51%, of total loans at December 31, 2024, down from $30.4 million, or 0.75%, at September 30, 2024[43]. - The allowance for credit losses remained stable at $35,183 thousand, compared to $35,197 thousand in the previous quarter[62]. - Net charge-offs were $2.0 million for the quarter ended December 31, 2024, compared to $1.2 million for the same quarter in 2023[15]. Interest Rates and Margins - Net interest margin increased by 10 basis points to 2.18% for Q4 2024, compared to 2.08% for Q3 2024[4]. - The average cost of interest-bearing liabilities increased by 80 basis points to 2.91% for the year ended December 31, 2024, from 2.11% in 2023[6]. - The net interest rate spread for the year ended December 31, 2024, was 1.45%, down from 1.82% in 2023[70]. - The net interest margin improved to 2.18% for the three months ended December 31, 2024, compared to 2.17% for the same period in 2023[68]. Dividends and Taxation - Cash dividend of $0.13 per share declared, payable February 19, 2025, to stockholders of record as of February 5, 2025[4]. - The effective tax rate for the year ended December 31, 2024, was 26.1%, compared to 27.2% for the year ended December 31, 2023[11]. - The effective tax rate for the quarter ended December 31, 2024, was 19.2%, down from 27.2% for the same quarter in 2023[17]. Loan Portfolio - Loans held for investment, net, decreased by $181.4 million to $4.02 billion at December 31, 2024, primarily due to a decrease in multifamily and commercial real estate loans[27]. - The multifamily loan portfolio reached $2.60 billion, representing 65% of the total loan portfolio, with $437.7 million (11%) collateralized by rent-regulated properties in New York[49]. - The small business unsecured commercial and industrial loan portfolio amounted to $28.9 million at December 31, 2024, down from $39.1 million at September 30, 2024, and $37.4 million at December 31, 2023[47]. - Average loans outstanding decreased to $4,106,641 million for the year ended December 31, 2024, from $4,248,355 million in 2023, a decline of 3.34%[70].

Core Insights - Northfield Bancorp (NFBK) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of 10.53% [1] - The company posted revenues of $36.69 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 13.24% and increasing from $32.55 million year-over-year [2] - Northfield has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times in the same period [2] Earnings Outlook - The sustainability of Northfield's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $32.51 million, while for the current fiscal year, it is $0.95 on revenues of $135.93 million [7] Industry Context - The Financial - Savings and Loan industry, to which Northfield belongs, is currently ranked in the top 12% 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 impact Northfield's stock performance [5]

Core Viewpoint - Northfield Bancorp, Inc. reported solid financial performance for the fourth quarter and the year ended December 31, 2024, with net income increasing compared to the previous quarter and year, despite challenges in the economic environment [2][3]. Financial Performance - Net income for the fourth quarter of 2024 was $11.3 million, or $0.27 per diluted share, compared to $6.5 million, or $0.16 per diluted share for the third quarter of 2024, and $8.2 million, or $0.19 per diluted share for the fourth quarter of 2023 [2][6][13]. - For the year ended December 31, 2024, net income totaled $29.9 million, or $0.72 per diluted share, down from $37.7 million, or $0.86 per diluted share for 2023 [2][4]. Revenue and Expenses - Net interest income for the fourth quarter of 2024 increased by $767,000, or 2.7%, to $29.7 million, driven by a $5.3 million increase in interest income, partially offset by a $4.5 million increase in interest expense [14][21]. - For the year ended December 31, 2024, net interest income decreased by $10.2 million, or 8.2%, to $114.5 million, primarily due to a $39.3 million increase in interest expense [5][8]. - Non-interest income increased by $4.9 million, or 41.4%, to $16.8 million for the year ended December 31, 2024, mainly due to a $3.4 million gain on the sale of property [10][11]. Asset Quality and Credit Losses - The provision for credit losses on loans increased by $2.9 million to $4.3 million for the year ended December 31, 2024, compared to $1.4 million for 2023 [9]. - Non-performing loans to total loans stood at 0.51% as of December 31, 2024, down from 0.75% at the end of the previous quarter [6]. Capital and Liquidity - The Company maintained strong liquidity with approximately $683 million in unpledged available-for-sale securities and loans readily available for pledge of approximately $935 million [6]. - Total stockholders' equity increased by $5.3 million to $704.7 million at December 31, 2024, from $699.4 million at December 31, 2023 [41]. Deposits and Borrowings - Total deposits increased by $260.0 million, or 6.7%, to $4.14 billion at December 31, 2024, with brokered deposits increasing significantly [39][40]. - Borrowed funds decreased to $727.8 million at December 31, 2024, from $920.5 million at December 31, 2023, primarily due to a decrease in other borrowings [40]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.13 per share, payable on February 19, 2025, to stockholders of record on February 5, 2025 [3].

Core Points - Northfield Bank's CEO, Steven M. Klein, has been elected to the Board of Directors of the Federal Home Loan Bank of New York for a four-year term starting January 1, 2025 [1][2] - Klein expressed gratitude for the support from New York members and emphasized the importance of the FHLBNY's mission to provide liquidity for housing and community development [2] - Northfield Bank operates 38 full-service banking offices across New York and New Jersey, focusing on community support and development [3][4] Company Overview - Northfield Bank was founded in 1887 and has a presence in Staten Island, Brooklyn, and several counties in New Jersey [3] - The bank's leadership under Klein includes strategic planning in lending, technology, risk management, and community engagement [2] Federal Home Loan Bank of New York Overview - The FHLBNY is a wholesale bank that is part of a national network of 11 regional banks, serving 338 financial institutions and housing associates [4] - Its mission is to provide reliable liquidity to support housing and local community development [4]

Financial Performance - Net income for the nine months ended September 30, 2024, was $18.7 million, down from $29.4 million for the same period in 2023, primarily due to a decrease in net interest income [165]. - Basic and diluted earnings per common share were $0.45 for the nine months ended September 30, 2024, down from $0.67 for the same period in 2023 [165]. - The company reported a net income of $18.7 million for the nine months ended September 30, 2024, a decrease from $29.4 million in the same period of 2023 [186]. - Net income for the quarter ended September 30, 2024, was $6.5 million, down from $8.2 million for the same quarter in 2023, reflecting a decrease in net interest income and an increase in the provision for credit losses [199]. Interest Income and Expense - Interest income increased by $23.9 million, or 15.5%, to $178.2 million for the nine months ended September 30, 2024, primarily due to a rise in interest-earning assets [187]. - Interest expense rose by $34.8 million, or 59.4%, to $93.4 million for the nine months ended September 30, 2024, driven by higher costs of deposits and borrowings [188]. - Interest income for the quarter ended September 30, 2024, increased by $6.6 million, or 12.5%, to $59.3 million, primarily due to a 38 basis point increase in the yield on interest-earning assets [200]. - Interest expense increased by $8.0 million, or 34.9%, to $31.1 million for the quarter ended September 30, 2024, from $23.0 million for the same quarter in 2023 [201]. Asset and Liability Management - Total assets increased by $132.5 million, or 2.4%, to $5.73 billion at September 30, 2024, from $5.60 billion at December 31, 2023 [166]. - Total liabilities increased by $132.3 million, or 2.7%, to $5.03 billion at September 30, 2024, mainly due to increased borrowings [179]. - The Bank's total short-term borrowed funds were $983 million at September 30, 2024, with a weighted average interest rate of 3.92% [224]. - The Company borrowed $300 million under the Bank Term Funding Program (BTFP) as of September 30, 2024 [224]. Loan Portfolio - Loans held-for-investment, net, decreased by $139.7 million, or 3.3%, to $4.06 billion at September 30, 2024, primarily due to decreases in multifamily and commercial real estate loans [170]. - Multifamily loans decreased by $110.1 million, or 4.0%, to $2.64 billion at September 30, 2024 [170]. - Total commercial real estate loans amounted to $878.2 million as of September 30, 2024, with a loan-to-value (LTV) ratio monitoring system in place [173]. - The multifamily loan portfolio totaled $2.64 billion, representing 65% of the total loan portfolio, with $447.5 million (11%) collateralized by rent-regulated properties in New York [219]. Credit Losses and Provisions - The allowance for credit losses on loans decreased to $35.2 million at September 30, 2024, from $37.5 million at December 31, 2023 [178]. - The provision for credit losses on loans increased by $1.3 million to $2.3 million for the nine months ended September 30, 2024, compared to $1.1 million for the same period in 2023, driven by a specific reserve related to a single commercial relationship totaling $12.5 million [190]. - Net charge-offs for the nine months ended September 30, 2024, were $4.7 million, primarily due to $3.9 million in net charge-offs on small business unsecured commercial and industrial loans [190]. - Provision for credit losses on loans increased by $2.4 million to $2.5 million for the quarter ended September 30, 2024, from $188,000 for the same quarter in 2023 [203]. Non-Interest Income and Expense - Non-interest income increased by $1.5 million, or 18.7%, to $9.8 million for the nine months ended September 30, 2024, compared to $8.3 million for the same period in 2023, primarily due to increases in fees and service charges [191]. - Non-interest expense increased by $3.2 million, or 5.2%, to $65.7 million for the nine months ended September 30, 2024, compared to $62.5 million for the same period in 2023, mainly due to higher employee compensation and benefits [193]. - Non-interest income increased by $1.5 million, or 68.7%, to $3.6 million for the quarter ended September 30, 2024, from $2.1 million for the same quarter in 2023 [204]. - Non-interest expense decreased by $189,000, or 0.9%, to $20.4 million for the quarter ended September 30, 2024, from $20.6 million for the same quarter in 2023 [205]. Regulatory Compliance and Risk Management - Northfield Bank and Northfield Bancorp, Inc. exceeded all regulatory capital requirements as of September 30, 2024 [232]. - The company has been in compliance with all Board-approved policies regarding interest rate risk management as of September 30, 2024 [243]. - The Management Asset-Liability Committee is responsible for evaluating interest rate risk and managing it according to guidelines approved by the Board of Directors [240]. - The company concluded that its disclosure controls and procedures were effective as of September 30, 2024 [249]. Market and Economic Conditions - The estimated change in net present value (NPV) of assets would decrease by $67,431, or 8.80%, with a 400 basis point increase in interest rates [245]. - A 100 basis point increase in interest rates would result in a 4.09% increase in net interest income [245]. - In the event of a 400 basis point decrease in interest rates, the estimated net portfolio value would increase by 19.60%, with a 2.07% increase in net interest income in year one and an 11.68% decrease in year two [243]. - The company's policies state that in the event of a 200 basis point decrease or less in interest rates, the net present value ratio should decrease by no more than 300 basis points and 10% [243]. Internal Controls and Legal Matters - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the three months ended September 30, 2024 [250]. - Legal actions arising in the normal course of business are not expected to have a material adverse effect on the company's consolidated financial condition or results of operations [252].