Northfield Bancorp(NFBK) - 2023 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2023, was $29.4 million, down from $47.0 million for the same period in 2022, representing a decrease of 37.8%[172] - Basic and diluted earnings per share decreased to $0.67 for the nine months ended September 30, 2023, compared to $1.01 for the same period in 2022, a decline of 33.7%[172] - Net income for the quarter ended September 30, 2023, was $8.2 million, down from $17.0 million in the same quarter of 2022, reflecting a decrease of $8.8 million[204] Assets and Liabilities - Total assets decreased by $164.2 million, or 2.9%, to $5.44 billion at September 30, 2023, from $5.60 billion at December 31, 2022[173] - Total liabilities decreased by $146.9 million, or 3.0%, to $4.75 billion as of September 30, 2023, from $4.90 billion at December 31, 2022[185] - Deposits decreased by $481.7 million, or 11.6%, to $3.67 billion at September 30, 2023, compared to $4.15 billion at December 31, 2022[186] Income and Expenses - Interest income increased by $23.4 million, or 17.9%, to $154.3 million for the nine months ended September 30, 2023, compared to $130.9 million for the same period in 2022[190] - Interest expense increased by $46.6 million, or 389.7%, to $58.6 million for the nine months ended September 30, 2023, compared to $12.0 million for the same period in 2022[191] - Net interest income decreased by $23.2 million, or 19.5%, to $95.7 million for the nine months ended September 30, 2023, from $119.0 million for the same period in 2022[192] - Non-interest income increased by $3.5 million, or 73.6%, to $8.3 million for the nine months ended September 30, 2023, from $4.8 million for the same period in 2022[194] - Non-interest expense increased by $7.2 million, or 13.0%, to $62.5 million for the nine months ended September 30, 2023, compared to $55.3 million for the same period in 2022[196] Interest Rate Risk Management - The estimated change in net portfolio value (NPV) for a 400 basis point increase in interest rates would result in a 17.19% decrease in NPV[243] - A 200 basis point decrease in interest rates would lead to a 4.94% increase in estimated NPV and a 4.53% increase in net interest income in the first year[245] - The company has implemented strategies to manage interest rate risk, including shortening the average term of interest-earning assets[239] - The management asset-liability committee is responsible for evaluating interest rate risk and recommending appropriate risk levels to the board[238] Credit Quality - The provision for credit losses on loans decreased by $2.2 million to $1.1 million for the nine months ended September 30, 2023, compared to $3.3 million for the same period in 2022[193] - Non-performing loans to total loans remained stable at 0.24% as of September 30, 2023, consistent with the previous year[1] - Loans 30 to 89 days delinquent increased to $8,105 million from $3,644 million year-over-year, representing a significant increase of approximately 122.5%[1] Regulatory Compliance - The Community Bank Leverage Ratio (CBLR) for Northfield Bank is 12.94% as of September 30, 2023, exceeding the minimum requirement of 9%[233] - Northfield Bank and Northfield Bancorp, Inc. exceeded all regulatory capital requirements as of September 30, 2023[232] Cash and Liquidity - Cash and cash equivalents increased by $34.8 million, or 75.9%, to $80.6 million at September 30, 2023, primarily due to excess cash from borrowings and proceeds from securities[176] - The Bank has the ability to obtain additional funding from the FHLBNY of approximately $1.35 billion utilizing unencumbered securities and loans[1] - The company expects to have sufficient funds available to meet current commitments in the normal course of business[1] Internal Controls - The company reported no changes in internal control over financial reporting that materially affected its operations during the three months ended September 30, 2023[249] - The management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[248]