Northfield Bancorp, Inc. Announces Second Quarter 2025 Results

Core Viewpoint - Northfield Bancorp, Inc. reported strong financial results for the second quarter and first half of 2025, driven by increased net interest income and disciplined expense management, alongside strategic initiatives in lending and deposit gathering [1][2]. Financial Performance - Net income for Q2 2025 was $9.6 million, or $0.24 per diluted share, up from $7.9 million ($0.19 per share) in Q1 2025 and $6.0 million ($0.14 per share) in Q2 2024 [1][11]. - For the first half of 2025, net income totaled $17.4 million, or $0.43 per diluted share, compared to $12.2 million ($0.29 per share) in the same period of 2024 [1][3]. Net Interest Income - Net interest income for Q2 2025 increased by $5.7 million, or 19.9%, to $34.4 million, driven by a decrease in interest expense and an increase in interest income [12][14]. - For the first half of 2025, net interest income rose by $9.6 million, or 17.0%, to $66.2 million, attributed to lower funding costs and higher yields on loans and securities [4][6]. Provision for Credit Losses - The provision for credit losses on loans increased by $2.7 million to $2.1 million in Q2 2025, primarily due to a worsening macroeconomic forecast [15][22]. - For the first half of 2025, the provision increased by $4.9 million to $4.7 million, reflecting higher general reserves and specific reserves [7][11]. Non-Interest Income and Expense - Non-interest income for Q2 2025 rose by $1.7 million, or 58.3%, to $4.5 million, mainly due to increased gains on trading securities and bank-owned life insurance [16][23]. - Non-interest expense remained stable at $23.0 million for Q2 2025, with a slight increase attributed to higher compensation and employee benefits [17][24]. Tax Expense - The income tax expense for Q2 2025 was $4.3 million, compared to $3.2 million in Q2 2024, with an effective tax rate of 31.0% [18][25]. Financial Condition - Total assets increased by $12.9 million, or 0.2%, to $5.68 billion as of June 30, 2025, primarily due to an increase in available-for-sale debt securities [26]. - Loans held-for-investment decreased by $101.6 million, or 2.5%, to $3.92 billion, reflecting a strategic focus on managing concentration risk [28][33]. Deposits and Borrowings - Total deposits decreased by $152.3 million, or 3.7%, to $3.99 billion, with a significant drop in brokered deposits [37]. - Borrowed funds increased to $893.5 million, primarily due to an increase in borrowings under an overnight line of credit [39]. Stockholder Equity - Total stockholders' equity increased by $5.6 million to $710.3 million, driven by net income and an increase in accumulated other comprehensive income [40].