Northfield Bancorp(US:NFBK)2025-03-03 21:22Credit 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].