Northfield Bancorp, Inc. Announces Second Quarter 2024 Results

Core Viewpoint - Northfield Bancorp, Inc. reported a decrease in net income and net interest income for the second quarter of 2024, primarily due to rising interest expenses and a decline in loan balances, while maintaining strong asset quality and liquidity. Financial Performance - Net income for the three months ended June 30, 2024, was $6.0 million, or $0.14 per diluted share, compared to $9.6 million, or $0.22 per diluted share, for the same period in 2023 [24][44] - Net interest income decreased by $2.5 million, or 7.9%, to $28.7 million for the quarter ended June 30, 2024, due to an $11.0 million increase in interest expense [45][50] - The net interest margin increased by six basis points to 2.09% from the previous quarter, primarily due to higher yields on interest-earning assets [34][31] Loan and Deposit Trends - Total loans held-for-investment decreased by $112.4 million, or 2.7%, to $4.09 billion at June 30, 2024, reflecting a strategic focus on managing loan concentrations and disciplined pricing [54] - Deposits (excluding brokered) decreased by $24 million, or 2.5% annualized, compared to the trailing quarter [20] Asset Quality - Non-performing loans to total loans remained stable at 0.42% at June 30, 2024, indicating strong asset quality [20][24] - The provision for credit losses on loans decreased to a benefit of $618,000 for the quarter ended June 30, 2024, compared to a provision of $30,000 for the same period in 2023 [46] Capital and Liquidity - The company maintained strong liquidity with approximately $622 million in unpledged available-for-sale securities and loans readily available-for-pledge of approximately $790 million [20] - Borrowed funds increased to $1.15 billion at June 30, 2024, from $920.5 million at December 31, 2023, primarily due to favorable terms under the Federal Reserve Bank Term Funding Program [5][39] Non-Interest Income and Expenses - Non-interest income decreased by $522,000, or 15.4%, to $2.9 million for the quarter ended June 30, 2024, primarily due to a decrease in gains on sales of trading securities [36] - Non-interest expense increased by $2.2 million, or 10.7%, to $23.0 million for the quarter ended June 30, 2024, primarily due to higher compensation and employee benefits [48]