Northfield Bancorp(NFBK) - 2025 Q1 - Quarterly Results

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].