Northfield Bancorp(NFBK) - 2025 Q3 - Quarterly Report

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]