Northfield Bancorp(NFBK) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements Unaudited consolidated financial statements, including balance sheets, income, equity, and cash flow, are presented with detailed accounting notes Consolidated Balance Sheets 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 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 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] Consolidated Statements of Cash Flows 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 Detailed notes disclose financial instruments, credit quality, equity, fair value measurements, and accounting policies, highlighting key changes and assumptions Note 1 – Consolidated Financial Statements - 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] - 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][32] Note 2 – Debt Securities Available-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] - 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] - 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] Note 3 – Debt Securities Held-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] - 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] Note 4 – Equity Securities Equity Securities (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :----------------