0001493225false00014932252023-10-252023-10-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,  D.C. 20549 
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 25, 2023
 
 
Northfield Bancorp, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware001-3579180-0882592
(State or other jurisdiction
of incorporation)		(Commission File No.)(I.R.S. Employer
Identification No.)
 
581 Main Street, Suite 810,
Woodbridge, New Jersey
 07095
(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code:        (732) 499-7200
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common stock, par value $0.01 per shareNFBKThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition.
 
On October 25, 2023, Northfield Bancorp, Inc. (the "Company") issued a press release announcing its earnings for the quarter ended September 30, 2023.  A copy of the press release is attached as Exhibit 99.1 to this report.

The press release attached as an exhibit to this Current Report pursuant to this Item 2.02 is being furnished to, and not filed with, the Securities and Exchange Commission.


Item 8.01.    Other Events.
 
The press release also announced the declaration of a $0.13 per common share cash dividend payable on November 22, 2023 to stockholders of record as of November 8, 2023.    


Item 9.01.    Financial Statements and Exhibits.
 
(a)     Not Applicable. 
(b)     Not Applicable.
(c)     Not Applicable. 
(d)     Exhibits.
 
    
Exhibit NumberDescription
Press release dated October 25, 2023
104
Cover Page Interactive Data File (embedded within Inline XBRL document)




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  NORTHFIELD BANCORP, INC.
DATE: October 30, 2023By:/s/ William R. Jacobs
  William R. Jacobs
  Chief Financial Officer
  (Principal Financial and Accounting Officer)


EXHIBIT 99.1
 
PRESS RELEASE DATED OCTOBER 25, 2023


Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519
FOR IMMEDIATE RELEASE
 
NORTHFIELD BANCORP, INC. ANNOUNCES
THIRD QUARTER 2023 RESULTS

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

•DILUTED EARNINGS PER SHARE WERE $0.19 FOR THE CURRENT QUARTER COMPARED TO $0.22 FOR THE TRAILING QUARTER, AND $0.37 FOR THE THIRD QUARTER OF 2022.
•ON A LINKED QUARTER BASIS, NET INTEREST MARGIN COMPRESSION SLOWED TO NINE BASIS POINTS VERSUS A 29 BASIS POINT DECREASE FOR THE QUARTER ENDED JUNE 30, 2023.
•TOTAL DEPOSITS (EXCLUDING BROKERED) INCREASED BY APPROXIMATELY $76 MILLION, OR 8.4% ANNUALIZED, FROM JUNE 30, 2023, DRIVEN BY INCREASES IN CERTIFICATES OF DEPOSITS, TRANSACTION ACCOUNTS, AND SAVINGS ACCOUNTS.
•COST OF DEPOSITS WAS 146 BASIS POINTS FOR THE CURRENT QUARTER AS COMPARED TO 113 BASIS POINTS FOR THE TRAILING QUARTER.
•LOAN BALANCES DECLINED MODESTLY WITH DECREASES IN MULTIFAMILY, COMMERCIAL MORTGAGE AND ONE-TO FOUR FAMILY LOANS BEING PARTIALLY OFFSET BY INCREASES IN HOME EQUITY LOANS AND LINES OF CREDIT, CONSTRUCTION AND LAND LOANS, AND COMMERCIAL AND INDUSTRIAL LOANS.
•CREDIT QUALITY REMAINS STRONG WITH NON-PERFORMING LOANS TO TOTAL LOANS AT 0.24% AT BOTH SEPTEMBER 30, 2023 AND JUNE 30, 2023.
•MAINTAINING STRONG LIQUIDITY WITH OVER $740 MILLION IN AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE FOR PLEDGE OF APPROXIMATELY $1.2 BILLION.
•MAINTAINING COST DISCIPLINE WITH NON-INTEREST EXPENSE TO AVERAGE TOTAL ASSETS OF 1.49% FOR THE QUARTER, CONSISTENT WITH THE QUARTER ENDED JUNE 30, 2023 AND DOWN FROM 1.52% AT MARCH 31, 2023.
•THE COMPANY REPURCHASED 285,588 SHARES FOR A COST OF $3.2 MILLION.
•CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE NOVEMBER 22, 2023, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 8, 2023.
WOODBRIDGE, N.J., OCTOBER 25, 2023 -- NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $8.2 million, or $0.19 per diluted share for the three months ended September 30, 2023, compared to $9.6 million, or $0.22 per diluted share, for the three months ended June 30, 2023, and $17.0 million, or $0.37 per diluted share, for the three months ended September 30, 2022. For the nine months ended September 30, 2023, net income totaled $29.4 million, or $0.67 per diluted share (including severance cost of $440,000, or $0.01 per share), compared to $47.0 million, or $1.01 per diluted share, for the nine months ended September 30, 2022. The decrease in net income for both the three and nine months ended September 30, 2023, compared to the trailing quarter and comparable prior year periods, was primarily the result of a decrease in net interest income, which was negatively impacted by higher funding costs.
Commenting on the quarter, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “The Northfield team continues to successfully manage through a challenging operating environment, and executing on our strategy of delivering Locally Grown Banking to the communities we serve. The Northfield team remained focused on building deposit and loan relationships, maintaining strong asset quality, and managing expenses, including our cost of funding, as our assets reprice in a higher interest rate environment.” Mr. Klein continued, “For the third quarter, net interest margin compression slowed significantly while we maintained our operating cost disciplines and strong asset quality. While significant market risks and uncertainties remain, we will continue to prudently manage our strong capital and liquidity and focus on the communities we serve.”
1


Mr. Klein further noted, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable November 22, 2023, to stockholders of record on November 8, 2023.”
Results of Operations
Comparison of Operating Results for the Nine Months Ended September 30, 2023 and 2022
 
Net income was $29.4 million and $47.0 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. Significant variances from the comparable prior year period are as follows: a $23.2 million decrease in net interest income, a $2.2 million decrease in the provision for credit losses on loans, a $3.5 million increase in non-interest income, a $7.2 million increase in non-interest expense, and a $7.2 million decrease in income tax expense.

Net interest income for the nine months ended September 30, 2023, decreased $23.2 million, or 19.5%, to $95.7 million, from $119.0 million for the nine months ended September 30, 2022. The decrease in net interest income was primarily attributable to an increase in the cost of interest-bearing liabilities due to the increase in market interest rates (as further discussed below) including a $46.6 million increase in interest expense on deposits, borrowings and subordinated debt which was partially offset by a $23.3 million increase in interest income. The increase in interest expense on deposits, borrowings and subordinated debt was largely driven by the impact of rising market interest rates and a $137.0 million, or 3.6%, increase in the average balance of interest-bearing liabilities, including increases of $501.7 million and $37.3 million, in average borrowed funds and subordinated debt, respectively, partially offset by a $402.1 million decrease in average interest-bearing deposits. The increase in interest income was primarily due to an $8.2 million, or 0.2%, increase in the average balance of interest-earning assets coupled with a 58 basis point increase in yields on interest-earning assets due to the rising rate environment and a greater percentage of assets consisting of higher-yielding loans. The increase in the average balance of interest-earning assets was due to increases in the average balance of loans outstanding of $241.1 million and the average balance of Federal Home Loan Bank of New York (“FHLBNY”) stock of $19.2 million, partially offset by decreases in the average balance of mortgage-backed securities of $186.9 million, the average balance of other securities of $41.7 million, and the average balance of interest-earning deposits in financial institutions of $23.4 million.

Net interest margin decreased by 58 basis point to 2.41% from 2.99% for the nine months ended September 30, 2022. The decrease in net interest margin was primarily due to the cost of interest-bearing liabilities increasing faster than the repricing of interest-earning assets. The cost of interest-bearing liabilities increased by 155 basis points to 1.97% for the nine months ended September 30, 2023, from 0.42% for the nine months ended September 30, 2022, driven primarily by a 145 basis point increase in the cost of borrowings from 2.13% to 3.58% and a 124 basis point increase in the cost of interest-bearing deposits from 0.18% to 1.42% for the nine months ended September 30, 2023, due to rising market interest rates and a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased 58 basis points to 3.88% for the nine months ended September 30, 2023, from 3.30% for the nine months ended September 30, 2022, primarily due to an increase in yields on loans from 3.93% to 4.24%, or 31 basis points. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $1.0 million for the nine months ended September 30, 2023, as compared to $1.1 million for the nine months ended September 30, 2022. Fees recognized from Paycheck Protection Program (“PPP”) loans totaled $30,000 for the nine months ended September 30, 2023, as compared to $1.3 million for the nine months ended September 30, 2022. Net interest income for the nine months ended September 30, 2023, included loan prepayment income of $1.3 million as compared to $4.2 million for the nine months ended September 30, 2022.

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 nine months ended September 30, 2022, primarily due to a decrease in loan balances, a decrease in reserves related to non-economic qualitative loss factors in the multifamily and commercial real estate portfolios, and a decrease in reserves related to the PCD portfolio, attributable to improved cash flows. The decreases were partially offset by a worsening macroeconomic outlook, higher net charge-offs, and higher reserves for downgraded commercial and industrial loans. Net charge-offs were $5.2 million for the nine months ended September 30, 2023, as compared to net charge-offs of $345,000 for the nine months ended September 30, 2022, due to $5.2 million in net charge-offs on small business unsecured commercial and industrial loans. Management continues to monitor the small business unsecured commercial and industrial loan portfolio, which totaled $39.1 million at September 30, 2023.

2

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 nine months ended September 30, 2022, due primarily to a $3.5 million increase in mark to market gains on trading securities, net. For the nine months ended September 30, 2023, gains on trading securities were $723,000, as compared to losses of $2.8 million for the nine months ended September 30, 2022. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the Company's deferred compensation plan (the “Plan”). The participants of this Plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have a minimal effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the Plan.

Non-interest expense increased $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 nine months ended September 30, 2022. The increase was primarily due to a $4.6 million increase in employee compensation and benefits, primarily attributable to a $3.5 million increase in the mark to market of the Company's deferred compensation plan expense, which as discussed above has no effect on net income, coupled with an increase in equity award expense related to awards issued in the first quarter of 2023, annual merit increases, and severance expense of $440,000, partially offset by a decrease in the accrual for incentive compensation. During the second quarter of 2023, due to economic conditions, the Company implemented a workforce reduction plan which included modest layoffs and the elimination of, and/or not filling, certain open positions. The annual estimated cost savings of this plan is $1.4 million, pre-tax. Data processing expense increased by $986,000, due to continued investments in technology, increased transaction costs related to an increase in the number of customer accounts and related volume of transactions, and higher pricing effective January 2023. Advertising expense increased by $577,000 due to the timing of certain programs and new promotions on deposit products. FDIC insurance expense increased by $695,000 due to higher assessment rates. There was an $870,000 decrease in credit loss expense/(benefit) for off-balance sheet credit exposures due to a benefit of $390,000 recorded during the nine months ended September 30, 2023, compared to a benefit of $1.3 million for the prior year period, attributed to a larger decrease in the pipeline of loans committed and awaiting closing in the prior year as compared to the current year. Partially offsetting the increases was a $418,000 decrease in professional fees attributable to higher recruitment, consulting and outsourcing fees in the prior year.

The Company recorded income tax expense of $11.0 million for the nine months ended September 30, 2023, compared to $18.2 million for the nine months ended September 30, 2022, with the decrease due to lower taxable income. The effective tax rate for the nine months ended September 30, 2023, was 27.2% compared to 27.9% for the nine months ended September 30, 2022.

Comparison of Operating Results for the Three Months Ended September 30, 2023 and 2022

Net income was $8.2 million and $17.0 million for the quarters ended September 30, 2023 and September 30, 2022, respectively. Significant variances from the comparable prior year quarter are as follows: a $12.3 million decrease in net interest income, a $2.5 million decrease in the provision for credit losses on loans, a $165,000 decrease in non-interest income, a $2.7 million increase in non-interest expense, and a $3.9 million decrease in income tax expense.

Net interest income for the quarter ended September 30, 2023, decreased $12.3 million, or 29.3%, to $29.7 million, from $42.0 million for the quarter ended September 30, 2022. The decrease in net interest income was attributable to a $17.8 million increase in interest expense on deposits and borrowings, partially offset by a $5.5 million increase in interest income. The increase in interest expense on deposits and borrowings was largely driven by an increase in the cost of funds (as discussed further below) due to the rising rate environment and, to a lesser extent, a $14.6 million, or 0.4%, increase in the average balance of interest-bearing liabilities, including an increase of $532.3 million in average borrowed funds, partially offset by a $517.5 million decrease in average interest-bearing deposits. The increase in interest income was primarily due to a 54 basis point increase in the yield on interest-earning assets due to the rising rate environment and a greater percentage of assets consisting of higher-yielding loans, partially offset by a decrease in the average balance of interest earning assets of $180.1 million, or 3.3%. The decrease in the average balance of interest-earning assets was due to decreases in the average balance of mortgage-backed securities of $173.2 million and the average balance of other securities of $85.4 million, partially offset by increases in the average balance of loans outstanding of $38.3 million, the average balance of FHLBNY stock of $18.6 million, and the average balance of interest-earning deposits in financial institutions of $21.6 million.

3

Net interest margin decreased by 83 basis points to 2.25% for the quarter ended September 30, 2023, from 3.08% for the quarter ended September 30, 2022, primarily due to the cost of interest-bearing liabilities increasing faster than the repricing of interest-earning assets. The cost of interest-bearing liabilities increased by 178 basis points to 2.31% for the quarter ended September 30, 2023, from 0.53% for the quarter ended September 30, 2022, driven primarily by a 139 basis point increase in the cost of borrowings from 2.24% to 3.63%, and a 158 basis point increase in the cost of interest-bearing deposits from 0.24% to 1.82%. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets which increased by 54 basis points to 4.00% for the quarter ended September 30, 2023, from 3.46% for the quarter ended September 30, 2022, primarily due to higher yields on loans from 3.98% to 4.31%, or 33 basis points. Net interest income for the quarter ended September 30, 2023, included loan prepayment income of $183,000, as compared to $1.6 million for the quarter ended September 30, 2022. The Company accreted interest income related to PCD loans of $325,000 for the quarter ended September 30, 2023, as compared to $368,000 for quarter ended September 30, 2022.

The provision for credit losses on loans decreased by $2.5 million to a provision of $188,000 for the quarter ended September 30, 2023, from a provision of $2.7 million for the quarter ended September 30, 2022. The decrease was primarily due to a decrease in loan balances, a decrease in reserves related to non-economic qualitative loss factors in the multifamily and commercial real estate portfolios, and a decrease in reserves related to the PCD portfolio, attributable to improved cash flows. The decreases were partially offset by a worsening macroeconomic outlook, higher net charge-offs, and an increase in reserves for downgraded commercial and industrial loans. Net charge-offs were $2.9 million for the quarter ended September 30, 2023, compared to net recoveries of $149,000 for the quarter ended September 30, 2022, due to $2.9 million in net charge-offs on small business unsecured commercial and industrial loans.

Non-interest income decreased by $165,000, or 7.2%, to $2.1 million for the quarter ended September 30, 2023, from $2.3 million for the quarter ended September 30, 2022, primarily due to a $183,000 decrease in fees and service charges for customers, primarily related to lower overdraft fees, and a $174,000 decrease in gains on sales of loans, partially offset by a $131,000 decrease in losses on trading securities. The decrease in gains on sales of loans was due to a $99,000 gain realized on the sale of one SBA loan totaling $974,000 in the third quarter of 2023 as compared to a $273,000 gain realized on the sale of two SBA loans totaling $2.5 million in the third quarter of 2022. For the quarter ended September 30, 2023, losses on trading securities, net, were $295,000, compared to losses of $426,000 in the quarter ended September 30, 2022. Gains and losses on trading securities have a minimal effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values.

Non-interest expense increased by $2.7 million, or 15.1%, to $20.6 million for the quarter ended September 30, 2023, from $17.9 million for the quarter ended September 30, 2022. The increase was primarily due to a $2.0 million increase in the credit loss expense/(benefit) for off-balance sheet exposures which was due to $160,000 of expense recorded during the quarter ended September 30, 2023, compared to a benefit of $1.9 million recorded in the prior year quarter. The benefit in the prior year quarter attributable to a decrease in the pipeline of loans committed and awaiting closing. Additionally, there was a $136,000 increase in compensation and employee benefits, a $147,000 increase in data processing expense due to continued investments in technology, and a $235,000 increase in FDIC insurance expense due to higher assessments.

The Company recorded income tax expense of $2.9 million for the quarter ended September 30, 2023, compared to $6.7 million for the quarter ended September 30, 2022, with the decrease due to lower taxable income. The effective tax rate for the quarter ended September 30, 2023 was 26.0%, compared to 28.4% for the quarter ended September 30, 2022.

Comparison of Operating Results for the Three Months Ended September 30, 2023 and June 30, 2023
 
Net income was $8.2 million and $9.6 million for the quarters ended September 30, 2023, and June 30, 2023, respectively. Significant variances from the prior quarter are as follows: a $1.5 million decrease in net interest income, a $158,000 increase in the provision for credit losses on loans, a $695,000 decrease in non-interest income, a $208,000 decrease in non-interest expense and a $736,000 decrease in income tax expense.

4

Net interest income for the quarter ended September 30, 2023, decreased by $1.5 million, or 4.7%, to $29.7 million, from $31.2 million for the quarter ended June 30, 2023. The decrease in net interest income was primarily attributable to a $2.5 million increase in interest expense on deposits and borrowings, partially offset by a $1.1 million increase in interest income. The increase in interest expense on deposits and borrowings was primarily due to an increase in the cost of funds (as discussed further below), partially offset by a $44.1 million, or 1.1%, decrease in the average balance of interest-bearing liabilities, including a decrease of $63.7 million in average borrowed funds, partially offset by a $19.5 million increase in average interest-bearing deposits. The increase in interest income was primarily due to an 11 basis point increase in the yield on interest-earning assets, partially offset by a $102.2 million, or 1.9%, decrease in the average balance of interest-earning assets. The decrease in the average balance of interest-earning assets was due to decreases in the average balance of loans outstanding of $32.1 million, the average balance of mortgage-backed securities of $42.7 million, the average balance of other securities of $29.9 million, and the average balance of FHLBNY stock of $2.6 million, partially offset by an increase in the average balance of interest-earning deposits in financial institutions of $5.2 million.

Net interest margin decreased by nine basis points to 2.25% from 2.34% for the quarter ended June 30, 2023, primarily due to the increase in the cost of interest-bearing liabilities outpacing the increase in yields on interest-earning assets. The cost of interest-bearing liabilities increased by 26 basis point to 2.31% for the quarter ended September 30, 2023, from 2.05% for the quarter ended June 30, 2023, driven by both higher costs of deposits and borrowed funds, which was partially offset by higher yields on interest-earning assets, which increased by 12 basis points to 4.00% for the quarter ended September 30, 2023, from 3.88% for the quarter ended June 30, 2023. Net interest income for the quarter ended September 30, 2023, included loan prepayment income of $183,000 as compared to $194,000 for the quarter ended June 30, 2023. The Company accreted interest income related to PCD loans of $325,000 for the quarter ended September 30, 2023, as compared to $337,000 for the quarter ended June 30, 2023.

The provision for credit losses on loans increased by $158,000 to $188,000 for the quarter ended September 30, 2023, from $30,000 for the quarter ended June 30, 2023. The increase in the provision was primarily attributable to higher net charge-offs, partially offset by a decrease in loan balances and a decrease in reserves related to the PCD portfolio, attributable to improved cash flows. Net charge-offs were $2.9 million for the quarter ended September 30, 2023, as compared to net charge-offs of $313,000 for the quarter ended June 30, 2023, due to $2.9 million in net charge-offs on small business unsecured commercial and industrial loans.

Non-interest income decreased by $695,000, or 24.7%, to $2.1 million for the quarter ended September 30, 2023, from $2.8 million for the quarter ended June 30, 2023. The decrease was primarily due to an $801,000 decrease in gains on sales of trading securities, net. For the quarter ended September 30, 2023, losses on trading securities, net, were $295,000, compared to gains of $506,000 for the quarter ended June 30, 2023. Gains and losses on trading securities have a minimal effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values.

Non-interest expense decreased by $208,000, or 1.0%, to $20.6 million for the quarter ended September 30, 2023, from $20.8 million for the quarter ended June 30, 2023. The decrease was primarily due to a $1.4 million decrease in compensation and employee benefits, which included an $801,000 decrease related to the mark to market of the Company's deferred compensation plan expense, which as previously discussed has no effect on net income, severance expense of $440,000 in the quarter ended June 30, 2023, and a decrease in the accrual for incentive compensation, partially offset by higher medical benefit expense. Partially offsetting the decrease was an increase of $821,000 in credit loss expense/(benefit) for off-balance sheet exposures due to a provision of $160,000 recorded during the quarter ended September 30, 2023, compared to a benefit of $661,000 for the quarter ended June 30, 2023, attributed to a larger decrease in the pipeline of loans committed and awaiting closing in the prior quarter as compared to the current quarter, and an increase of $311,000 in other operating expense.

The Company recorded income tax expense of $2.9 million for the quarter ended September 30, 2023, compared to $3.6 million for the quarter ended June 30, 2023 with the decrease due to lower taxable income. The effective tax rate for the quarter ended September 30, 2023 was 26.0%, compared to 27.4% for the quarter ended and June 30, 2023.

Financial Condition

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. The decrease was primarily due to a decrease in available-for-sale debt securities of $208.5 million, or 21.9%, and loans receivable of $12.8 million, or 0.3%, partially offset by increases in cash and cash equivalents of $34.8 million, or 75.9%, FHLBNY stock of $10.8 million, or 35.5%, and other assets of $8.0 million, or 14.8%.

5

As of September 30, 2023, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 459%. Management believes that Northfield Bank (the “Bank”) has implemented appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company's ability to pay dividends, and overall profitability.

Cash and cash equivalents increased by $34.8 million, or 75.9%, to $80.6 million at September 30, 2023, from $45.8 million at December 31, 2022, primarily due to an increase in Federal Reserve Bank of New York (“FRB”) balances driven by excess cash from borrowings and proceeds from the maturity and calls of available for sale securities. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities. During the first quarter of 2023, management believed it was prudent to increase balance sheet liquidity given general market volatility and uncertainty.

Loans held-for-investment, net, decreased by $13.7 million, or 0.3%, to $4.23 billion at September 30, 2023 from $4.24 billion at December 31, 2022, primarily due to a decrease in multifamily loans, partially offset by an increase in commercial real estate loans. The Company continues to focus on the credit needs of its customers, and to a lesser extent, the development of new business notwithstanding the uncertain economic environment. Multifamily loans decreased $42.4 million, or 1.5%, to $2.78 billion at September 30, 2023 from $2.82 billion at December 31, 2022, one-to-four family residential loans decreased $9.4 million, or 5.4%, to $164.5 million at September 30, 2023 from $173.9 million at December 31, 2022, and commercial and industrial loans decreased $9.9 million, or 6.4%, to $144.8 million at September 30, 2023 from $154.7 million at December 31, 2022. Partially offsetting these decreases were increases in commercial real estate loans of $33.7 million, or 3.8%, to $933.0 million at September 30, 2023 from $899.2 million at December 31, 2022, home equity loans of $8.2 million, or 5.4%, to $160.8 million at September 30, 2023 from $152.6 million at December 31, 2022, and construction and land loans of $7.4 million, or 29.5%, to $32.3 million at September 30, 2023 from $24.9 million at December 31, 2022.

At September 30, 2023, office-related loans represented $210.8 million, or approximately 5% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 58%. Approximately 46% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are as follows: 53.6% in New York and 46.4% in New Jersey. At September 30, 2023, our largest office-related loan had a principal balance of $86.0 million (with a net active principal balance for the Bank of $28.7 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.

PCD loans totaled $10.4 million and $11.5 million at September 30, 2023 and December 31, 2022, respectively, and the decrease was primarily due to one loan with a balance of approximately $950,000 transferred to loans held-for-sale at September 30, 2023. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $325,000 and $1.0 million attributable to PCD loans for the three and nine months ended September 30, 2023, respectively, as compared to $368,000 and $1.1 million for the three and nine months ended September 30, 2022, respectively. PCD loans had an allowance for credit losses of approximately $3.1 million at September 30, 2023.

6

Loan balances are summarized as follows (dollars in thousands):
September 30, 2023June 30, 2023December 31, 2022
Real estate loans:
Multifamily$2,782,141 $2,814,809 $2,824,579 
Commercial mortgage932,987 942,980 899,249 
One-to-four family residential mortgage164,525 170,767 173,946 
Home equity and lines of credit160,798 158,517 152,555 
Construction and land32,290 29,444 24,932 
Total real estate loans4,072,741 4,116,517 4,075,261 
Commercial and industrial loans 144,463 142,948 149,557 
PPP loans325 366 5,143 
Other loans2,074 2,663 2,230 
Total commercial and industrial, PPP, and other loans146,862 145,977 156,930 
Loans held-for-investment, net (excluding PCD)4,219,603 4,262,494 4,232,191 
PCD loans10,371 11,548 11,502 
Total loans held-for-investment, net$4,229,974 $4,274,042 $4,243,693 

The Company’s available-for-sale debt securities portfolio decreased by $208.5 million, or 21.9%, to $743.7 million at September 30, 2023, from $952.2 million at December 31, 2022. The decrease was primarily attributable to paydowns, maturities and calls. At September 30, 2023, $568.6 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $72.3 million in U.S. Government agency securities, $102.0 million in corporate bonds, substantially all of which were considered investment grade, and $763,000 in municipal bonds at September 30, 2023. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $48.2 million and $535,000, respectively, at September 30, 2023, and $48.6 million and $332,000, respectively, at December 31, 2022.

Equity securities were $10.6 million at September 30, 2023 and $10.4 million at December 31, 2022. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program.

Total liabilities decreased $146.9 million, or 3.0%, to $4.75 billion at September 30, 2023, from $4.90 billion at December 31, 2022. The decrease was primarily attributable to a decrease in total deposits of $481.7 million, partially offset by an increase in FHLB advances and other borrowings of $335.1 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest bearing liabilities, and funding needs related to loan originations and deposit activity.
Deposits decreased $481.7 million, or 11.6%, to $3.67 billion at September 30, 2023, as compared to $4.15 billion at December 31, 2022. Brokered deposits decreased by $390.0 million, or 100.0%. Deposits, excluding brokered deposits, decreased $91.7 million, or 2.4%. The decrease in deposits, excluding brokered deposits, was attributable to decreases of $106.7 million in transaction accounts and $204.6 million in money market accounts. These decreases were partially offset by increases of $180.8 million in time deposits and $38.8 million in savings accounts. Estimated uninsured deposits (excluding fully collateralized uninsured governmental deposits of $661.1 million) were approximately $899.5 million, or 24.5%, of total deposits as of September 30, 2023, as compared to estimated uninsured deposits (excluding fully collateralized uninsured governmental deposits of $617.4 million) of approximately $827.8 million, or 22%, of total deposits as of June 30, 2023.
.

7

Deposit account balances are summarized as follows (dollars in thousands):
September 30, 2023June 30, 2023December 31, 2022
Transaction:
Non-interest bearing checking$727,605 $754,498 $852,660 
Negotiable orders of withdrawal and interest-bearing checking1,150,647 1,116,000 1,132,290 
Total transaction1,878,252 1,870,498 1,984,950 
Savings and money market:
Savings956,009 930,198 917,180 
Money market303,510 309,475 508,067 
Total savings1,259,519 1,239,673 1,425,247 
Certificates of deposit:
Brokered deposits— 171,448 390,035 
$250,000 and under461,220 420,518 293,200 
Over $250,000 69,522 62,266 56,787 
Total certificates of deposit530,742 654,232 740,022 
Total deposits$3,668,513 $3,764,403 $4,150,219 

Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

September 30, 2023June 30, 2023December 31, 2022
Business customers$988,612 $993,298 $1,146,803 
Municipal (governmental) customers$638,881 $595,322 $604,717 
Borrowed funds increased to $980.1 million at September 30, 2023, from $644.9 million at December 31, 2022. The increase in borrowings for the period was due to an increase in FHLB and FRB borrowings of $335.1 million, including $114.5 million of borrowings under the Federal Reserve Bank Term Funding Program which included favorable terms and conditions as compared to FHLB advances. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies. During the nine months ended September 30, 2023, the Company increased borrowings to pay off higher-rate brokered certificates of deposit, and, to a lesser extent, fund deposit outflows of non-brokered deposits.

The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at September 30, 2023 (dollars in thousands):
Year
Amount (1)
Weighted Average Rate
2023$20,0004.38%
2024195,2653.96%
2025182,5002.59%
2026148,0004.36%
2027173,0003.19%
Thereafter154,2883.96%
$873,0533.60%
(1) Borrowings maturing in 2023 and 2024 include $20.0 million and $94.5 million, respectively, of FRB borrowings that can be repaid without any penalty.

Total stockholders’ equity decreased by $17.3 million to $684.1 million at September 30, 2023, from $701.4 million at December 31, 2022. The decrease was attributable to $32.4 million in stock repurchases and $17.3 million in dividend payments, partially offset by net income of $29.4 million for the nine months ended September 30, 2023, a $348,000 increase in accumulated other comprehensive income associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio, and a $2.6 million increase in equity award activity. During the nine months ended September 30, 2023, the Company repurchased approximately 2.6 million of its common stock outstanding at an average price of $12.27 for a total of $32.4 million pursuant to approved stock repurchase plans. As of September 30, 2023, the Company had no remaining capacity under its current repurchase program.
8

The Company's most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business.

The Company had the following primary sources of liquidity at September 30, 2023 (dollars in thousands): 
Cash and cash equivalents(1)
$67,298 
Corporate bonds(2)
$90,318 
Multifamily loans(2)
$1,185,250 
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2)
$120,943 
(1) Excludes $13.3 million of cash at Northfield Bank.
(2) Represents estimated remaining borrowing potential.    

The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At September 30, 2023, the Company and the Bank's estimated CBLR ratios were 12.69% and 12.94%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.



9

Asset Quality
 
The following table details total non-accrual loans (excluding PCD), non-performing loans, non-performing assets, troubled debt restructurings on which interest is accruing, and accruing loans 30 to 89 days delinquent at September 30, 2023, June 30, 2023, and December 31, 2022 (dollars in thousands):
 September 30, 2023June 30, 2023December 31, 2022
Non-accrual loans: 
Held-for-investment
Real estate loans: 
Multifamily$3,073 $3,223 $3,285 
Commercial5,435 5,393 5,184 
One-to-four family residential106 109 118 
Home equity and lines of credit98 100 262 
Commercial and industrial848 1,275 964 
Other10 10 — 
Total non-accrual loans9,570 10,110 9,813 
Loans delinquent 90 days or more and still accruing: 
Held-for-investment
Real estate loans: 
Multifamily209 218 233 
Commercial114 — 8 
One-to-four family residential139 6 155 
Home equity and lines of credit115 — — 
Commercial and industrial15 — — 
PPP loans— — 24 
Other— — 5 
Total loans held-for-investment delinquent 90 days or more and still accruing592 224 425 
Total non-performing assets$10,162 $10,334 $10,238 
Non-performing loans to total loans0.24 %0.24 %0.24 %
Non-performing assets to total assets0.19 %0.19 %0.18 %
Loans subject to restructuring agreements and still accruing (1)
$— $— $3,751 
Accruing loans 30 to 89 days delinquent$8,105 $4,076 $3,644 
(1) With the adoption of Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), effective January 1, 2023, TDR accounting has been eliminated.


10

Accruing Loans 30 to 89 Days Delinquent
 
Loans 30 to 89 days delinquent and on accrual status totaled $8.1 million, $4.1 million, and $3.6 million at September 30, 2023, June 30, 2023, and December 31, 2022, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at September 30, 2023, June 30, 2023 and December 31, 2022 (dollars in thousands):
  
 September 30, 2023June 30, 2023December 31, 2022
Held-for-investment
Real estate loans:
Multifamily$178 $— $189 
Commercial1,892 803 900 
One-to-four family residential2,708 567 672 
Home equity and lines of credit1,206 256 830 
Commercial and industrial loans2,117 2,450 1,048 
Other loans4 — 5 
Total delinquent accruing loans held-for-investment$8,105 $4,076 $3,644 

The increase in delinquent commercial loans is primarily due to one loan with a balance of $1.1 million that became delinquent during the current quarter. The loan is well-secured by property in Staten Island, New York, with an appraised value of $4.2 million. The majority of the loans past due in the one-to-four family residential and home equity and lines of credit portfolios were due to loans past due 30 days at September 30, 2023 (current as of June 30, 2023), and became current subsequent to the quarter end, therefore management does not believe the recent increase in delinquencies in these portfolios is an indicator of credit deterioration. The increase in the commercial and industrial loan delinquencies from December 31, 2022 was primarily due to an increase in delinquencies in unsecured small business loans. Unsecured small business loans totaled $39.1 million, $41.4 million, and $43.3 million at September 30, 2023, June 30, 2023 and December 31, 2022, respectively. Management continues to monitor the small business unsecured commercial and industrial loan portfolio.

PCD Loans (Held-for-Investment)

The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($10.4 million at September 30, 2023 and $11.5 million at December 31, 2022, respectively) as accruing, even though they may be contractually past due. At September 30, 2023, 3.5% of PCD loans were past due 30 to 89 days, and 28.2% were past due 90 days or more, as compared to 6.8% and 23.0%, respectively, at December 31, 2022.



11

About Northfield Bank

Northfield Bank, founded in 1887, operates 38 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

Forward-Looking Statements: This release may contain certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, including any potential recessionary conditions, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, the effects of the COVID-19 pandemic, including the effects of the steps taken to address the pandemic and their impact on the Company’s market and employees, competition among depository and other financial institutions, including with respect to overdraft and other fees, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a potential government shutdown, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, and adverse changes in the securities markets. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.
 
(Tables follow)

12

NORTHFIELD BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts) (unaudited)
At or For the
 At or For the Three Months Ended
Nine Months Ended
 September 30,June 30,September 30,
 20232022202320232022
Selected Financial Ratios:   
Performance Ratios (1)
   
Return on assets (ratio of net income to average total assets) 0.59 %1.19 %0.69 %0.71 %1.13 %
Return on equity (ratio of net income to average equity)4.74 9.45 5.52 5.69 8.73 
Average equity to average total assets12.49 12.56 12.44 12.44 12.90 
Interest rate spread1.69 2.93 1.83 1.91 2.88 
Net interest margin2.25 3.08 2.34 2.41 2.99 
Efficiency ratio (2)
64.65 40.34 61.14 60.06 44.69 
Non-interest expense to average total assets
1.49 1.25 1.49 1.50 1.33 
Non-interest expense to average total interest-earning assets
1.56 1.31 1.56 1.57 1.39 
Average interest-earning assets to average interest-bearing liabilities 132.21 137.26 133.31 133.66 138.21 
Asset Quality Ratios:
Non-performing assets to total assets0.19 0.17 0.19 0.19 0.17 
Non-performing loans (3) to total loans (4)
0.24 0.23 0.24 0.24 0.23 
Allowance for credit losses to non-performing loans378.67 423.96 398.24 378.67 423.96 
Allowance for credit losses to total loans held-for-investment, net (5)
0.91 0.99 0.96 0.91 0.99 

(1)Annualized where appropriate. 
(2)The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3)Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
(4)Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
(5)Includes originated loans held-for-investment, PCD loans, and acquired loans.

13

NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts) (unaudited)
 September 30, 2023June 30, 2023December 31, 2022
ASSETS:
Cash and due from banks$13,258 $13,853 $14,530 
Interest-bearing deposits in other financial institutions67,298 75,274 31,269 
Total cash and cash equivalents80,556 89,127 45,799 
Trading securities11,504 11,731 10,751 
Debt securities available-for-sale, at estimated fair value743,699 802,257 952,173 
Debt securities held-to-maturity, at amortized cost 10,114 10,316 10,760 
Equity securities 10,628 10,653 10,443 
Loans held-for-sale950 977 — 
Loans held-for-investment, net4,229,974 4,274,042 4,243,693 
Allowance for credit losses (38,480)(41,154)(42,617)
Net loans held-for-investment4,191,494 4,232,888 4,201,076 
Accrued interest receivable17,355 17,721 17,426 
Bank-owned life insurance170,591 169,671 167,912 
Federal Home Loan Bank of New York stock, at cost41,165 40,376 30,382 
Operating lease right-of-use assets31,407 32,010 34,288 
Premises and equipment, net24,154 24,573 24,844 
Goodwill 41,012 41,012 41,012 
Other assets62,455 57,503 54,427 
Total assets$5,437,084 $5,540,815 $5,601,293 
LIABILITIES AND STOCKHOLDERS’ EQUITY:  
LIABILITIES:  
Deposits$3,668,513 $3,764,403 $4,150,219 
Securities sold under agreements to repurchase25,000 25,000 25,000 
Federal Home Loan Bank advances and other borrowings893,973 898,535 558,859 
Subordinated debentures, net of issuance costs61,163 61,108 60,996 
Lease liabilities36,535 37,274 39,790 
Advance payments by borrowers for taxes and insurance25,968 29,117 25,995 
Accrued expenses and other liabilities41,857 38,737 39,044 
Total liabilities4,753,009 4,854,174 4,899,903 
STOCKHOLDERS’ EQUITY:  
Total stockholders’ equity684,075 686,641 701,390 
Total liabilities and stockholders’ equity$5,437,084 $5,540,815 $5,601,293 
Total shares outstanding44,956,118 45,243,673 47,442,488 
Tangible book value per share (1)
$14.30 $14.27 $13.91 

(1)    Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $185,000, $216,000, and $266,000 at September 30, 2023, June 30, 2023 and December 31, 2022, respectively, and are included in other assets.


14

NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share and per share amounts) (unaudited)
 For the Three Months Ended
For the Nine Months Ended
September 30,June 30,September 30,
 20232022202320232022
Interest income:  
Loans$46,213 $42,311 $45,300 $135,220 $118,030 
Mortgage-backed securities3,664 3,284 3,714 11,170 8,802 
Other securities1,095 1,201 1,113 3,593 2,885 
Federal Home Loan Bank of New York dividends933 283 727 2,125 788 
Deposits in other financial institutions831 199 816 2,225 423 
Total interest income52,736 47,278 51,670 154,333 130,928 
Interest expense:    
Deposits13,614 2,121 10,483 31,918 4,614 
Borrowings8,593 2,304 9,198 24,182 6,388 
Subordinated debt837 842 828 2,484 961 
Total interest expense23,044 5,267 20,509 58,584 11,963 
Net interest income29,692 42,011 31,161 95,749 118,965 
Provision for credit losses188 2,703 30 1,082 3,255 
Net interest income after provision for credit losses 29,504 39,308 31,131 94,667 115,710 
Non-interest income:    
Fees and service charges for customer services1,317 1,500 1,309 4,006 4,206 
Income on bank-owned life insurance920 861 889 2,679 2,548 
(Losses)/gains on available-for-sale debt securities, net— — (18)(17)264 
(Losses)/gains on trading securities, net(295)(426)506 723 (2,791)
Gain on sale of loans99 273 35 134 273 
Other80 78 95 744 264 
Total non-interest income2,121 2,286 2,816 8,269 4,764 
Non-interest expense:    
Compensation and employee benefits10,920 10,784 12,353 34,310 29,709 
Occupancy3,416 3,347 3,244 10,032 10,041 
Furniture and equipment479 438 460 1,393 1,290 
Data processing1,994 1,847 2,071 6,308 5,322 
Professional fees883 903 768 2,622 3,040 
Advertising414 420 573 1,834 1,257 
Federal Deposit Insurance Corporation insurance591 356 568 1,763 1,068 
Credit loss expense/(benefit) for off-balance sheet exposures160 (1,888)(661)(390)(1,260)
Other1,710 1,663 1,399 4,598 4,825 
Total non-interest expense20,567 17,870 20,775 62,470 55,292 
Income before income tax expense11,058 23,724 13,172 40,466 65,182 
Income tax expense2,877 6,745 3,613 11,019 18,202 
Net income $8,181 $16,979 $9,559 $29,447 $46,980 
Net income per common share:    
Basic$0.19 $0.37 $0.22 $0.67 $1.01 
Diluted$0.19 $0.37 $0.22 $0.67 $1.01 
Basic average shares outstanding42,866,246 46,047,104 43,914,110 43,848,873 46,486,086 
Diluted average shares outstanding42,918,174 46,236,662 43,952,939 43,927,350 46,657,084 
15

NORTHFIELD BANCORP, INC.
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands) (unaudited)
 
 For the Three Months Ended
 September 30, 2023June 30, 2023September 30, 2022
 Average Outstanding BalanceInterest
Average Yield/ Rate (1)
Average Outstanding BalanceInterest
Average Yield/ Rate (1)
Average Outstanding BalanceInterest
Average Yield/ Rate (1)
Interest-earning assets:         
Loans (2)
$4,252,752 $46,213 4.31 %$4,284,871 $45,300 4.24 %$4,214,438 $42,311 3.98 %
Mortgage-backed securities (3)
660,753 3,664 2.20 703,415 3,714 2.12 833,975 3,284 1.56 
Other securities (3)
209,341 1,095 2.08 239,273 1,113 1.87 294,786 1,201 1.62 
Federal Home Loan Bank of New York stock41,278 933 8.97 43,901 727 6.64 22,641 283 4.96 
Interest-earning deposits in financial institutions73,005 831 4.52 67,822 816 4.83 51,364 199 1.54 
Total interest-earning assets5,237,129 52,736 4.00 5,339,282 51,670 3.88 5,417,204 47,278 3.46 
Non-interest-earning assets248,315   244,567  257,177   
Total assets$5,485,444   $5,583,849  $5,674,381   
  
Interest-bearing liabilities:      
Savings, NOW, and money market accounts$2,408,218 $8,865 1.46 %$2,399,631 $6,486 1.08 %$2,923,600 $701 0.10 %
Certificates of deposit551,904 4,749 3.41 540,984 3,997 2.96 554,018 1,420 1.02 
Total interest-bearing deposits2,960,122 13,614 1.82 2,940,615 10,483 1.43 3,477,618 2,121 0.24 
Borrowed funds939,922 8,593 3.63 1,003,611 9,198 3.68 407,668 2,304 2.24 
Subordinated debt61,127 837 5.43 61,071 828 5.44 61,283 842 5.45 
Total interest-bearing liabilities3,961,171 23,044 2.31 4,005,297 20,509 2.05 3,946,569 5,267 0.53 
Non-interest bearing deposits739,266 780,806 911,183   
Accrued expenses and other liabilities100,103 102,846  103,853   
Total liabilities4,800,540 4,888,949  4,961,605   
Stockholders' equity684,904 694,900  712,776   
Total liabilities and stockholders' equity$5,485,444 $5,583,849  $5,674,381   
Net interest income $29,692   $31,161  $42,011  
Net interest rate spread (4)
  1.69 % 1.83 %  2.93 %
Net interest-earning assets (5)
$1,275,958   $1,333,985  $1,470,635  
Net interest margin (6)
  2.25 % 2.34 %  3.08 %
Average interest-earning assets to interest-bearing liabilities  132.21 %  133.31 %  137.26 %

(1)Average yields and rates are annualized.
(2)Includes non-accruing loans.
(3)Securities available-for-sale and other securities are reported at amortized cost.
(4)Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)Net interest margin represents net interest income divided by average total interest-earning assets.


16

 
For the Nine Months Ended
 September 30, 2023September 30, 2022
 Average Outstanding BalanceInterest
Average Yield/ Rate (1)
Average Outstanding BalanceInterest
Average Yield/ Rate (1)
Interest-earning assets:      
Loans (2)
$4,260,827 $135,220 4.24 %$4,019,750 $118,030 3.93 %
Mortgage-backed securities (3)
703,320 11,170 2.12 890,257 8,802 1.32 
Other securities (3)
241,280 3,593 1.99 283,017 2,885 1.36 
Federal Home Loan Bank of New York stock41,093 2,125 6.91 21,845 788 4.82 
Interest-earning deposits in financial institutions72,683 2,225 4.09 96,122 423 0.59 
Total interest-earning assets5,319,203 154,333 3.88 5,310,991 130,928 3.30 
Non-interest-earning assets244,319 267,581 
Total assets$5,563,522 $5,578,572 
Interest-bearing liabilities:
Savings, NOW, and money market accounts$2,443,400 $19,194 1.05 %$2,961,776 $1,871 0.08 %
Certificates of deposit572,283 12,724 2.97 455,985 2,743 0.80 
Total interest-bearing deposits3,015,683 31,918 1.42 3,417,761 4,614 0.18 
Borrowed funds902,802 24,182 3.58 401,109 6,388 2.13 
Subordinated debt61,164 2,484 5.43 23,828 961 5.39 
Total interest-bearing liabilities$3,979,649 58,584 1.97 $3,842,698 11,963 0.42 
Non-interest bearing deposits788,991 913,322  
Accrued expenses and other liabilities102,765 103,075   
Total liabilities4,871,405 4,859,095   
Stockholders' equity692,117 719,477   
Total liabilities and stockholders' equity$5,563,522 $5,578,572   
Net interest income$95,749  $118,965  
Net interest rate spread (4)
1.91 %  2.88 %
Net interest-earning assets (5)
$1,339,554 $1,468,293  
Net interest margin (6)
2.41 %  2.99 %
Average interest-earning assets to interest-bearing liabilities133.66 %  138.21 %

(1)    Average yields and rates are annualized.
(2)     Includes non-accruing loans.
(3)     Securities available-for-sale and other securities are reported at amortized cost.
(4)     Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)     Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)    Net interest margin represents net interest income divided by average total interest-earning assets.

17
v3.23.3
Cover
Oct. 25, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 25, 2023
Entity Registrant Name Northfield Bancorp, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35791
Entity Tax Identification Number 80-0882592
Entity Address, Address Line One 581 Main Street
Entity Address, Address Line Two Suite 810
Entity Address, City or Town Woodbridge
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07095
City Area Code 732
Local Phone Number 499-7200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.01 per share
Trading Symbol NFBK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001493225
Amendment Flag false
Northfield Bancorp (NASDAQ:NFBK)
Historical Stock Chart
Von Apr 2024 bis Mai 2024 Click Here for more Northfield Bancorp Charts.
Northfield Bancorp (NASDAQ:NFBK)
Historical Stock Chart
Von Mai 2023 bis Mai 2024 Click Here for more Northfield Bancorp Charts.