[10-Q] Northfield Bancorp, Inc. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Northfield Bancorp reported stronger second-quarter results with rising interest income and higher net income year-over-year. Net income for the three months was $9.571 million versus $5.957 million a year earlier, and for six months was $17.447 million versus $12.171 million a year earlier. Net interest income increased to $34.396 million for the quarter from $28.687 million, driven in part by higher loan and mortgage-backed securities interest.
The balance sheet shows total assets of $5.679 billion and deposits declined to $3.986 billion from $4.138 billion at year-end, while borrowings (FHLB advances and other) increased to $831.920 million. Loans held-for-investment declined to $3.921 billion and the allowance for credit losses rose modestly to $36.120 million. Non-interest income benefited from $1.008 million of trading gains and income on bank-owned life insurance. The company invested further in available-for-sale debt securities, and cash and cash equivalents fell to $97.637 million.
Northfield Bancorp ha registrato risultati più solidi nel secondo trimestre, con proventi da interessi in aumento e una crescita dell'utile netto su base annua. L'utile netto per il trimestre è stato di $9.571 million rispetto a $5.957 million dell'anno precedente, e per i sei mesi è stato di $17.447 million contro $12.171 million un anno prima. Il margine di interesse netto è salito a $34.396 million nel trimestre da $28.687 million, trainato in parte da maggiori interessi su prestiti e su mortgage-backed securities.
Lo stato patrimoniale mostra attività totali per $5.679 billion; i depositi sono diminuiti a $3.986 billion rispetto a $4.138 billion a fine anno, mentre i finanziamenti (anticipazioni FHLB e altri) sono aumentati a $831.920 million. I prestiti detenuti a fini d'investimento sono scesi a $3.921 billion e l'accantonamento per perdite su crediti è salito lievemente a $36.120 million. I proventi non da interessi hanno beneficiato di $1.008 million di plusvalenze di trading e di ricavi derivanti da polizze vita di proprietà della banca. La società ha aumentato gli investimenti in titoli di debito disponibili per la vendita e la liquidità è scesa a $97.637 million.
Northfield Bancorp informó resultados del segundo trimestre más sólidos, con mayores ingresos por intereses y un incremento del beneficio neto interanual. El beneficio neto del trimestre fue de $9.571 million frente a $5.957 million del año anterior, y de $17.447 million en seis meses frente a $12.171 million un año antes. Los ingresos netos por intereses aumentaron hasta $34.396 million en el trimestre desde $28.687 million, impulsados en parte por mayores intereses de préstamos y de valores respaldados por hipotecas.
El balance refleja activos totales por $5.679 billion, y los depósitos cayeron a $3.986 billion desde $4.138 billion a fin de año, mientras que los préstamos (anticipos FHLB y otros) aumentaron a $831.920 million. Los préstamos mantenidos con fines de inversión disminuyeron a $3.921 billion y la provisión para pérdidas crediticias se elevó ligeramente hasta $36.120 million. Los ingresos no relacionados con intereses se beneficiaron de $1.008 million en ganancias de trading e ingresos por seguros de vida en poder del banco. La compañía incrementó su inversión en valores de deuda disponibles para la venta y el efectivo y equivalentes de efectivo descendieron a $97.637 million.
Northfield Bancorp는 2분기에 이자수익 증가와 전년 대비 순이익 확대에 힘입어 더 우수한 실적을 보고했습니다. 3개월(분기) 순이익은 $9.571 million으로 전년의 $5.957 million에서 증가했으며, 6개월 누계 순이익은 $17.447 million으로 전년의 $12.171 million를 상회했습니다. 순이자수익은 분기 기준 $28.687 million에서 $34.396 million으로 늘었는데, 이는 부분적으로 대출 및 모기지 담보증권 이자 증가에 기인합니다.
대차대조표 상 총자산은 $5.679 billion이며, 예금은 기말의 $4.138 billion에서 $3.986 billion으로 감소한 반면 차입금(FHLB 차입 및 기타)은 $831.920 million으로 증가했습니다. 투자 목적으로 보유한 대출은 $3.921 billion으로 줄었고 대손충당금은 소폭 증가하여 $36.120 million이 되었습니다. 비이자수익은 은행 보유 생명보험 관련 수익 및 $1.008 million의 트레이딩 이익의 혜택을 받았습니다. 회사는 매도가능 채권에 대한 추가 투자를 진행했고 현금 및 현금성자산은 $97.637 million으로 감소했습니다.
Northfield Bancorp a publié des résultats du deuxième trimestre plus solides, avec une hausse des revenus d'intérêts et une augmentation du résultat net d'une année sur l'autre. Le résultat net pour le trimestre s'est élevé à $9.571 million contre $5.957 million un an plus tôt, et à $17.447 million sur six mois contre $12.171 million un an auparavant. Le produit net d'intérêts est passé à $34.396 million pour le trimestre contre $28.687 million, tiré en partie par des intérêts plus élevés sur les prêts et les titres adossés à des hypothèques.
Le bilan fait apparaître des actifs totaux de $5.679 billion ; les dépôts ont diminué à $3.986 billion contre $4.138 billion à la fin de l'année, tandis que les emprunts (avances FHLB et autres) ont augmenté à $831.920 million. Les prêts détenus à des fins d'investissement ont diminué à $3.921 billion et la provision pour pertes sur créances a légèrement augmenté à $36.120 million. Les produits hors intérêts ont bénéficié de $1.008 million de gains de trading et de revenus provenant d'assurances-vie détenues par la banque. La société a accru ses investissements en titres de dette disponibles à la vente et la trésorerie et équivalents de trésorerie ont diminué à $97.637 million.
Northfield Bancorp meldete im zweiten Quartal stärkere Ergebnisse, mit steigenden Zinsüberschüssen und einem höheren Jahresvergleichsgewinn. Der Nettogewinn für das Quartal belief sich auf $9.571 million gegenüber $5.957 million ein Jahr zuvor, und für sechs Monate auf $17.447 million gegenüber $12.171 million im Vorjahr. Der Nettozinsertrag stieg im Quartal von $28.687 million auf $34.396 million, teils bedingt durch höhere Zinsen aus Krediten und mortgage‑backed securities.
Die Bilanz weist Gesamtvermögen in Höhe von $5.679 billion aus; die Einlagen sanken auf $3.986 billion gegenüber $4.138 billion zum Jahresende, während die Fremdmittel (FHLB-Vorschüsse und sonstige) auf $831.920 million zunahmen. Zur Anlage gehaltene Kredite verringerten sich auf $3.921 billion und die Rückstellung für Kreditverluste stieg leicht auf $36.120 million. Die Nichtzinserträge profitierten von $1.008 million Handelsgewinnen und Erträgen aus bankeigenen Lebensversicherungen. Das Unternehmen hat seine Anlagen in zum Verkauf stehende Schuldpapiere weiter ausgeweitet, und Kassenbestand sowie Zahlungsmitteläquivalente sanken auf $97.637 million.
Positive
- Net income growth: Three-month net income rose to $9.571 million from $5.957 million a year earlier.
- Higher net interest income: Net interest income increased to $34.396 million for the quarter versus $28.687 million a year earlier.
- Trading and other income contribution: Net gains on trading securities were $1.008 million for the quarter, supporting non-interest income.
- Improved comprehensive income: Unrealized gains on available-for-sale debt securities increased driving higher comprehensive income for the periods presented.
Negative
- Deposit decline: Deposits decreased to $3.986 billion from $4.138 billion at December 31, 2024.
- Increased reliance on borrowings: FHLB advances and other borrowings rose to $831.920 million from $666.402 million.
- Higher provision for credit losses and charge-offs: Provision expense was $2.086 million for the quarter (versus a benefit of $0.618 million a year earlier) and YTD net charge-offs increased to $3.7 million.
- Decline in loans and liquidity: Loans held-for-investment fell to $3.920 billion and cash and cash equivalents declined to $97.637 million from $167.744 million.
Insights
TL;DR: Earnings improved materially with higher net interest income and trading gains, supporting profitability despite funding pressures.
The quarter shows meaningful operating leverage: net interest income rose by ~20% sequentially year-over-year to $34.4M, and net income increased to $9.6M. Mortgage-backed securities interest and trading gains materially contributed to non-interest income. However, deposit balances declined and borrowings rose by ~$165.5M compared to year-end, indicating a shift toward wholesale funding. The allowance for credit losses increased modestly alongside higher provisions and net charge-offs, reflecting more conservative CECL model assumptions and some asset deterioration. Overall, results are positive for earnings but funding and credit trends warrant monitoring.
TL;DR: Profitability improved but deposit outflows and greater reliance on borrowings raise liquidity and funding risk concerns.
Deposits fell to $3.986B and FHLB advances and other borrowings rose to $831.9M, implying increased wholesale funding use. Cash and equivalents declined to $97.6M. The allowance for credit losses increased to $36.1M and net charge-offs totaled $3.7M year-to-date, while non-performing loans remained elevated at $12.857M on non-accrual. The company materially expanded available-for-sale securities holdings, which exposes the balance sheet to interest rate and liquidity dynamics. These items temper the positive earnings picture and are neutral-to-moderate risk factors for investors.
Northfield Bancorp ha registrato risultati più solidi nel secondo trimestre, con proventi da interessi in aumento e una crescita dell'utile netto su base annua. L'utile netto per il trimestre è stato di $9.571 million rispetto a $5.957 million dell'anno precedente, e per i sei mesi è stato di $17.447 million contro $12.171 million un anno prima. Il margine di interesse netto è salito a $34.396 million nel trimestre da $28.687 million, trainato in parte da maggiori interessi su prestiti e su mortgage-backed securities.
Lo stato patrimoniale mostra attività totali per $5.679 billion; i depositi sono diminuiti a $3.986 billion rispetto a $4.138 billion a fine anno, mentre i finanziamenti (anticipazioni FHLB e altri) sono aumentati a $831.920 million. I prestiti detenuti a fini d'investimento sono scesi a $3.921 billion e l'accantonamento per perdite su crediti è salito lievemente a $36.120 million. I proventi non da interessi hanno beneficiato di $1.008 million di plusvalenze di trading e di ricavi derivanti da polizze vita di proprietà della banca. La società ha aumentato gli investimenti in titoli di debito disponibili per la vendita e la liquidità è scesa a $97.637 million.
Northfield Bancorp informó resultados del segundo trimestre más sólidos, con mayores ingresos por intereses y un incremento del beneficio neto interanual. El beneficio neto del trimestre fue de $9.571 million frente a $5.957 million del año anterior, y de $17.447 million en seis meses frente a $12.171 million un año antes. Los ingresos netos por intereses aumentaron hasta $34.396 million en el trimestre desde $28.687 million, impulsados en parte por mayores intereses de préstamos y de valores respaldados por hipotecas.
El balance refleja activos totales por $5.679 billion, y los depósitos cayeron a $3.986 billion desde $4.138 billion a fin de año, mientras que los préstamos (anticipos FHLB y otros) aumentaron a $831.920 million. Los préstamos mantenidos con fines de inversión disminuyeron a $3.921 billion y la provisión para pérdidas crediticias se elevó ligeramente hasta $36.120 million. Los ingresos no relacionados con intereses se beneficiaron de $1.008 million en ganancias de trading e ingresos por seguros de vida en poder del banco. La compañía incrementó su inversión en valores de deuda disponibles para la venta y el efectivo y equivalentes de efectivo descendieron a $97.637 million.
Northfield Bancorp는 2분기에 이자수익 증가와 전년 대비 순이익 확대에 힘입어 더 우수한 실적을 보고했습니다. 3개월(분기) 순이익은 $9.571 million으로 전년의 $5.957 million에서 증가했으며, 6개월 누계 순이익은 $17.447 million으로 전년의 $12.171 million를 상회했습니다. 순이자수익은 분기 기준 $28.687 million에서 $34.396 million으로 늘었는데, 이는 부분적으로 대출 및 모기지 담보증권 이자 증가에 기인합니다.
대차대조표 상 총자산은 $5.679 billion이며, 예금은 기말의 $4.138 billion에서 $3.986 billion으로 감소한 반면 차입금(FHLB 차입 및 기타)은 $831.920 million으로 증가했습니다. 투자 목적으로 보유한 대출은 $3.921 billion으로 줄었고 대손충당금은 소폭 증가하여 $36.120 million이 되었습니다. 비이자수익은 은행 보유 생명보험 관련 수익 및 $1.008 million의 트레이딩 이익의 혜택을 받았습니다. 회사는 매도가능 채권에 대한 추가 투자를 진행했고 현금 및 현금성자산은 $97.637 million으로 감소했습니다.
Northfield Bancorp a publié des résultats du deuxième trimestre plus solides, avec une hausse des revenus d'intérêts et une augmentation du résultat net d'une année sur l'autre. Le résultat net pour le trimestre s'est élevé à $9.571 million contre $5.957 million un an plus tôt, et à $17.447 million sur six mois contre $12.171 million un an auparavant. Le produit net d'intérêts est passé à $34.396 million pour le trimestre contre $28.687 million, tiré en partie par des intérêts plus élevés sur les prêts et les titres adossés à des hypothèques.
Le bilan fait apparaître des actifs totaux de $5.679 billion ; les dépôts ont diminué à $3.986 billion contre $4.138 billion à la fin de l'année, tandis que les emprunts (avances FHLB et autres) ont augmenté à $831.920 million. Les prêts détenus à des fins d'investissement ont diminué à $3.921 billion et la provision pour pertes sur créances a légèrement augmenté à $36.120 million. Les produits hors intérêts ont bénéficié de $1.008 million de gains de trading et de revenus provenant d'assurances-vie détenues par la banque. La société a accru ses investissements en titres de dette disponibles à la vente et la trésorerie et équivalents de trésorerie ont diminué à $97.637 million.
Northfield Bancorp meldete im zweiten Quartal stärkere Ergebnisse, mit steigenden Zinsüberschüssen und einem höheren Jahresvergleichsgewinn. Der Nettogewinn für das Quartal belief sich auf $9.571 million gegenüber $5.957 million ein Jahr zuvor, und für sechs Monate auf $17.447 million gegenüber $12.171 million im Vorjahr. Der Nettozinsertrag stieg im Quartal von $28.687 million auf $34.396 million, teils bedingt durch höhere Zinsen aus Krediten und mortgage‑backed securities.
Die Bilanz weist Gesamtvermögen in Höhe von $5.679 billion aus; die Einlagen sanken auf $3.986 billion gegenüber $4.138 billion zum Jahresende, während die Fremdmittel (FHLB-Vorschüsse und sonstige) auf $831.920 million zunahmen. Zur Anlage gehaltene Kredite verringerten sich auf $3.921 billion und die Rückstellung für Kreditverluste stieg leicht auf $36.120 million. Die Nichtzinserträge profitierten von $1.008 million Handelsgewinnen und Erträgen aus bankeigenen Lebensversicherungen. Das Unternehmen hat seine Anlagen in zum Verkauf stehende Schuldpapiere weiter ausgeweitet, und Kassenbestand sowie Zahlungsmitteläquivalente sanken auf $97.637 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
For the quarterly period ended June 30, 2025
or
For transition period from __________ to __________
Commission File Number: 001-35791
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (732 ) 499-7200
Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act: | |||||||||||
| Large accelerated filer | ☐ | ☒ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| 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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 31, 2025, the registrant had 41,810,525 shares of Common Stock, par value $0.01 per share, issued and outstanding.
NORTHFIELD BANCORP, INC.
Form 10-Q Quarterly Report
Table of Contents
| Page | ||||||||
PART I - FINANCIAL INFORMATION | ||||||||
| Item 1. | Financial Statements | 4 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 43 | ||||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 60 | ||||||
| Item 4. | Controls and Procedures | 62 | ||||||
PART II - OTHER INFORMATION | ||||||||
| Item 1. | Legal Proceedings | 63 | ||||||
| Item 1A. | Risk Factors | 63 | ||||||
| Item 2. | Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities | 63 | ||||||
| Item 3. | Defaults Upon Senior Securities | 63 | ||||||
| Item 4. | Mine Safety Disclosures | 63 | ||||||
| Item 5. | Other Information | 63 | ||||||
| Item 6. | Exhibits | 64 | ||||||
SIGNATURES | 65 | |||||||
3
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PART I
ITEM 1. FINANCIAL STATEMENTS
NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except share amounts)
| June 30, 2025 | December 31, 2024 | ||||||||||
| ASSETS: | |||||||||||
| Cash and due from banks | $ | $ | |||||||||
| Interest-bearing deposits in other financial institutions | |||||||||||
| Total cash and cash equivalents | |||||||||||
| Trading securities | |||||||||||
Debt securities available-for-sale, at estimated fair value (with | |||||||||||
| Debt securities held-to-maturity, at amortized cost | |||||||||||
(estimated fair value of $ | |||||||||||
| Equity securities | |||||||||||
| Loans held-for-sale | |||||||||||
| Loans held-for-investment | |||||||||||
| Less: allowance for credit losses | ( | ( | |||||||||
| Net loans held-for-investment | |||||||||||
| Accrued interest receivable | |||||||||||
| Bank-owned life insurance | |||||||||||
Federal Home Loan Bank (“FHLB”) of New York stock, at cost | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Premises and equipment, net | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
| LIABILITIES: | |||||||||||
| Deposits | $ | $ | |||||||||
| FHLB advances and other borrowings | |||||||||||
| Subordinated debentures, net of issuance costs | |||||||||||
| Operating lease liabilities | |||||||||||
| Advance payments by borrowers for taxes and insurance | |||||||||||
| Accrued expenses and other liabilities | |||||||||||
| Total liabilities | |||||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
June 30, 2025 and December 31, 2024, | |||||||||||
| Additional paid-in-capital | |||||||||||
| Unallocated common stock held by employee stock ownership plan | ( | ( | |||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost: | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
See accompanying notes to unaudited consolidated financial statements.
4
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NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited) (In thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Loans | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage-backed securities | |||||||||||||||||||||||
| Other securities | |||||||||||||||||||||||
| FHLB of New York dividends | |||||||||||||||||||||||
| Deposits in other financial institutions | |||||||||||||||||||||||
| Total interest income | |||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Borrowings | |||||||||||||||||||||||
| Subordinated debt | |||||||||||||||||||||||
| Total interest expense | |||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||
| Provision (benefit) for credit losses | ( | ( | |||||||||||||||||||||
| Net interest income after provision (benefit) for credit losses | |||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Fees and service charges for customer services | |||||||||||||||||||||||
| Income on bank-owned life insurance | |||||||||||||||||||||||
| Gains on available-for-sale debt securities, net | |||||||||||||||||||||||
| Gains on trading securities, net | |||||||||||||||||||||||
| Gain on sale of loans | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total non-interest income | |||||||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Compensation and employee benefits | |||||||||||||||||||||||
| Occupancy | |||||||||||||||||||||||
| Furniture and equipment | |||||||||||||||||||||||
| Data processing | |||||||||||||||||||||||
| Professional fees | |||||||||||||||||||||||
| Advertising | |||||||||||||||||||||||
| Federal Deposit Insurance Corporation insurance | |||||||||||||||||||||||
| Credit loss (benefit) expense for off-balance sheet exposures | ( | ||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total non-interest expense | |||||||||||||||||||||||
| Income before income tax expense | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| See accompanying notes to unaudited consolidated financial statements. | |||||||||||||||||||||||
5
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NORTHFIELD BANCORP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (Continued) (Unaudited) (In thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||
| Unrealized gains on debt securities available-for-sale: | |||||||||||||||||||||||
| Net unrealized holding gains | |||||||||||||||||||||||
| Less: reclassification adjustment for net gains included in net income | ( | ( | |||||||||||||||||||||
| Net unrealized gains | |||||||||||||||||||||||
| Post-retirement benefits adjustment | |||||||||||||||||||||||
| Other comprehensive income before tax | |||||||||||||||||||||||
| Income tax expense related to net unrealized holding gains on debt securities available-for-sale | ( | ( | ( | ( | |||||||||||||||||||
| Income tax benefit related to post retirement benefit adjustment | ( | ||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
See accompanying notes to unaudited consolidated financial statements.
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NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Three Months Ended June 30, 2025 and 2024
(Unaudited) (In thousands, except share data)
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares Outstanding | Par Value | Additional Paid-in Capital | Unallocated Common Stock Held by the Employee Stock Ownership Plan | Retained Earnings | Accumulated Other Comprehensive Income (loss) Net of tax | Treasury Stock | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock issuance | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock forfeitures | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock (average cost of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock issuance | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock (average cost of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
See accompanying notes to unaudited consolidated financial statements.
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NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Six Months Ended June 30, 2025 and 2024
(Unaudited) (In thousands, except share data)
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares Outstanding | Par Value | Additional Paid-in Capital | Unallocated Common Stock Held by the Employee Stock Ownership Plan | Retained Earnings | Accumulated Other Comprehensive Income (loss) Net of tax | Treasury Stock | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock issuance | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock forfeitures | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Purchase of employee restricted stock to fund statutory tax withholding | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock (average cost of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Restricted stock issuance | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Purchase of employee restricted stock to fund statutory tax withholding | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of treasury stock (average cost of $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
See accompanying notes to unaudited consolidated financial statements.
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NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Provision (benefit) for credit losses | ( | ||||||||||
| ESOP and stock compensation expense | |||||||||||
| Depreciation | |||||||||||
| Amortization (accretion) of premiums and deferred loan costs, net of accretion of discounts and deferred loan fees | ( | ||||||||||
| Amortization of debt issuance costs | |||||||||||
| Amortization of intangible assets | |||||||||||
| Amortization of operating lease right-of-use assets | |||||||||||
| Income on bank-owned life insurance | ( | ( | |||||||||
| Net gain on sale of loans | ( | ||||||||||
| Proceeds from sale of loans held-for-sale | |||||||||||
| Origination of loans held-for-sale | ( | ||||||||||
| Gains on available-for-sale debt securities, net | ( | ||||||||||
| Gains on trading securities, net | ( | ( | |||||||||
| Net sales of trading securities | |||||||||||
| Increase in accrued interest receivable | ( | ( | |||||||||
| Decrease (increase) in other assets | ( | ||||||||||
| (Decrease) increase in accrued expenses and other liabilities | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Net decrease in loans receivable | |||||||||||
| Purchases of loans | ( | ||||||||||
| Purchases of FHLB of New York stock | ( | ( | |||||||||
| Redemptions of FHLB of New York stock | |||||||||||
| Purchases of debt securities available-for-sale | ( | ( | |||||||||
| Purchases of equity securities | ( | ||||||||||
| Principal payments and maturities on debt securities available-for-sale | |||||||||||
| Principal payments and maturities on debt securities held-to-maturity | |||||||||||
| Proceeds from sale of equity securities | |||||||||||
| Purchases and improvements of premises and equipment | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net decrease in deposits | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Purchase of treasury stock | ( | ( | |||||||||
| Increase in advance payments by borrowers for taxes and insurance | |||||||||||
| Proceeds from borrowings and securities sold under agreements to repurchase | |||||||||||
| Repayments related to other borrowings and securities sold under agreements to repurchase | ( | ( | |||||||||
| Net cash (used in) provided by financing activities | ( | ||||||||||
| Net decrease in cash and cash equivalents | ( | ( | |||||||||
| Cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
See accompanying notes to unaudited consolidated financial statements
9
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NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
(Unaudited) (In thousands)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid during the period for: | |||||||||||
| Interest | $ | $ | |||||||||
| Income taxes | |||||||||||
| Non-cash transactions: | |||||||||||
| Loan charge-offs, net | |||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities | |||||||||||
See accompanying notes to unaudited consolidated financial statements.
10
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements
Note 1 – Consolidated Financial Statements
Basis of Presentation
The consolidated financial statements are comprised of the accounts of Northfield Bancorp, Inc. and its wholly owned subsidiaries, Northfield Investments, Inc. and Northfield Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, NSB Services Corp. and NSB Realty Trust (collectively the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation.
In the opinion of management, all adjustments (consisting solely of normal and recurring adjustments) necessary for the fair presentation of the consolidated balance sheets and the consolidated statements of comprehensive income for the unaudited periods presented have been included. The results of operations and other data presented for the three and six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2025 or for any other period. Whenever necessary, certain prior year amounts are reclassified to conform to the current year presentation.
In preparing the unaudited consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and for the periods indicated in the consolidated statements of comprehensive income. Material estimates that are particularly susceptible to change are: the allowance for credit losses and the valuation allowance against deferred tax assets. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates.
Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for the preparation of interim financial statements.
The consolidated financial statements presented should be read in conjunction with the audited consolidated financial statements and notes to consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Note 2 – Debt Securities Available-for-Sale
The following is a comparative summary of mortgage-backed securities and other debt securities available-for-sale at June 30, 2025, and December 31, 2024 (in thousands):
| June 30, 2025 | |||||||||||||||||||||||
| Gross | Gross | Estimated | |||||||||||||||||||||
| Amortized | unrealized | unrealized | fair | ||||||||||||||||||||
| cost | gains | losses | value | ||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | ( | $ | ||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||
| Government sponsored enterprises ("GSEs") | ( | ||||||||||||||||||||||
| Real estate mortgage investment conduits ("REMICs"): | |||||||||||||||||||||||
| GSE | ( | ||||||||||||||||||||||
| Total mortgage-backed securities | ( | ||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||
| Municipal bonds | |||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Total other debt securities | ( | ||||||||||||||||||||||
| Total debt securities available-for-sale | $ | $ | $ | ( | $ | ||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Gross | Gross | Estimated | |||||||||||||||||||||
| Amortized | unrealized | unrealized | fair | ||||||||||||||||||||
| cost | gains | losses | value | ||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | ( | $ | ||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||
| GSE | ( | ||||||||||||||||||||||
| REMICs: | |||||||||||||||||||||||
| GSE | ( | ||||||||||||||||||||||
| Total mortgage-backed securities | ( | ||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||
| Municipal bonds | |||||||||||||||||||||||
| Corporate bonds | ( | ||||||||||||||||||||||
| Total other debt securities | ( | ||||||||||||||||||||||
| Total debt securities available-for-sale | $ | $ | $ | ( | $ | ||||||||||||||||||
The following is a summary of the expected maturity distribution of debt securities available-for-sale, other than mortgage-backed securities, at June 30, 2025 (in thousands):
| Available-for-sale | Amortized cost | Estimated fair value | ||||||||||||
| Due in one year or less | $ | $ | ||||||||||||
| Due after one year through five years | ||||||||||||||
| Due after five years through ten years | ||||||||||||||
| $ | $ | |||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Contractual maturities for mortgage-backed securities are not included above, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.
Certain securities available-for-sale are pledged or encumbered to secure borrowings under pledge agreements and repurchase agreements and for other purposes required by law. At June 30, 2025, and December 31, 2024, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $494.3 million and $420.4 million, respectively.
For the three and six months ended June 30, 2025, the Company had no no no no gross unrealized losses and gross realized gains of $1,000 related to calls of securities. The Company recognized net gains of $1.0 million and $709,000 on its trading securities portfolio during the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2024, the Company recognized net gains of $188,000 and $887,000 , respectively, on its trading securities portfolio.
Gross unrealized losses on mortgage-backed securities and other debt securities available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2025, and December 31, 2024, were as follows (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | ||||||||||||||||||||||||||||||
| losses | fair value | losses | fair value | losses | fair value | ||||||||||||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||||||||||||||
| GSE | ( | ( | ( | ||||||||||||||||||||||||||||||||
| REMICs: | |||||||||||||||||||||||||||||||||||
| GSE | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||||||||||||||
| Municipal bonds | |||||||||||||||||||||||||||||||||||
| Corporate bonds | ( | ( | |||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | ||||||||||||||||||||||||||||||
| losses | fair value | losses | fair value | losses | fair value | ||||||||||||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||||||||||||||
| GSE | ( | ( | ( | ||||||||||||||||||||||||||||||||
| REMICs: | |||||||||||||||||||||||||||||||||||
| GSE | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||||||||||||||
| Corporate bonds | ( | ( | |||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The Company held 106 pass-through mortgage-backed securities issued or guaranteed by GSEs, 67 REMIC mortgage-backed securities issued or guaranteed by GSEs, three corporate bonds, and one U.S. Government agency security that were in a continuous unrealized loss position of twelve months or greater at June 30, 2025. There were six pass-through mortgage-backed securities issued or guaranteed by GSEs, 16 REMIC mortgage-backed securities issued or guaranteed by GSEs, and one municipal bond that were in an unrealized loss position of less than twelve months at June 30, 2025. Substantially all securities referred to above were rated investment grade at June 30, 2025.
Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level such as credit deterioration of the issuer or collateral underlying the security. In assessing the impairment, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If it is determined that the decline in fair value was due to credit losses, an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. The Company did no
The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company also assesses its intent to sell the securities (as well as the likelihood of a near-term recovery). If the Company intends to sell an available-for-sale debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the debt security is written down to its fair value and the write down is charged to the debt security’s fair value at the reporting date with any incremental impairment reported in earnings.
The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivable associated with debt securities available-for-sale totaled $3.5 million and $3.1 million at June 30, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable as an allowance on possible uncollectible accrued interest is not warranted.
Note 3 – Debt Securities Held-to-Maturity
The following is a summary of mortgage-backed securities held-to-maturity at June 30, 2025, and December 31, 2024 (in thousands):
| June 30, 2025 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||
| GSE | $ | $ | $ | ( | $ | ||||||||||||||||||
| Total securities held-to-maturity | $ | $ | $ | ( | $ | ||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||
| GSE | $ | $ | $ | ( | $ | ||||||||||||||||||
| Total securities held-to-maturity | $ | $ | $ | ( | $ | ||||||||||||||||||
Contractual maturities for mortgage-backed securities are not presented, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. There were no
14
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
At June 30, 2025, and December 31, 2024, debt securities held-to-maturity with a carrying value of $8.3 million and $9.1 million, respectively, were pledged to secure borrowings and deposits.
Gross unrealized losses on mortgage-backed securities held-to-maturity, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025, and December 31, 2024, were as follows (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | ||||||||||||||||||||||||||||||
| losses | fair value | losses | fair value | losses | fair value | ||||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||||||||||||||
| GSE | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Unrealized | Estimated | Unrealized | Estimated | Unrealized | Estimated | ||||||||||||||||||||||||||||||
| losses | fair value | losses | fair value | losses | fair value | ||||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||||||||||||||
| GSE | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
The Company held nine pass-through mortgage-backed debt securities held-to-maturity issued or guaranteed by GSEs that were in a continuous unrealized loss position of twelve months or greater at June 30, 2025.
The Company's held-to-maturity securities are residential mortgage-backed securities issued by Ginnie Mae, Freddie Mac and Fannie Mae, and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. Government. Accordingly, no allowance for credit losses has been recorded for these securities.
The Company has made the accounting policy election to exclude accrued interest receivable on held-to-maturity securities from the estimate of credit losses. Accrued interest receivable associated with held-to-maturity securities totaling $30,000 and $33,000 at June 30, 2025, and December 31, 2024, respectively, was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable as an allowance on possible uncollectible accrued interest is not warranted.
Note 4 – Equity Securities
Equity securities totaled $6.3 million and $14.3 million at June 30, 2025, and December 31, 2024, respectively. Equity securities consisted of money market mutual funds, recorded at fair value of $1.3 million and $4.3 million at June 30, 2025, and December 31, 2024, respectively, and an investment in a private SBA loan fund (the “SBA Loan Fund”) recorded at net asset value of $5.0 million and $10.0 million at June 30, 2025, and December 31, 2024, respectively. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and, therefore, has no readily determinable market value. The SBA Loan Fund was recorded at net asset value as a practical expedient for reporting fair value.
15
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Note 5 – Loans
The following table summarizes the Company’s loans held-for-investment (in thousands):
| June 30, | December 31, | |||||||||||||
| 2025 | 2024 | |||||||||||||
| Real estate loans: | ||||||||||||||
| Multifamily | $ | $ | ||||||||||||
| Commercial mortgage | ||||||||||||||
| One-to-four family residential mortgage | ||||||||||||||
| Home equity and lines of credit | ||||||||||||||
| Construction and land | ||||||||||||||
| Total real estate loans | ||||||||||||||
| Commercial and industrial loans | ||||||||||||||
| Other loans | ||||||||||||||
| Total commercial and industrial and other loans | ||||||||||||||
Loans held-for-investment (excluding purchased credit-deteriorated (“PCD”) loans) | ||||||||||||||
| PCD loans | ||||||||||||||
| Total loans held-for-investment | ||||||||||||||
| Allowance for credit losses | ( | ( | ||||||||||||
| Net loans held-for-investment | $ | $ | ||||||||||||
The Company did not have any loans held-for-sale at June 30, 2025. At December 31, 2024, loans held-for-sale totaled $4.9 million.
In addition to originating loans, the Company may acquire loans through portfolio purchases or acquisitions of other companies. Purchased loans that have evidence of more than insignificant credit deterioration since origination are deemed PCD loans. For PCD loans, each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. PCD loans totaled $9.0 million at June 30, 2025, as compared to $9.2 million at December 31, 2024. The majority of the PCD loan balances were acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. At June 30, 2025, PCD loans consisted of approximately 11 % home equity loans, 25 % commercial real estate loans, 55 % commercial and industrial loans, and 9 % in one-to-four family residential loans. At December 31, 2024, PCD loans consisted of approximately 9 % one-to-four family residential loans, 25 % commercial real estate loans, 55 % commercial and industrial loans, and 11 % in home equity loans.
16
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Credit Quality Indicators
The Company monitors the credit quality of its loan portfolio on a regular basis. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that loan-to-value (“LTV”) ratios (at period end) and internally assigned credit risk ratings by loan type are the key credit quality indicators that best measure the credit quality of the Company’s loan receivables. LTV ratios used by management in monitoring credit quality are based on current period loan balances and original appraised values at the time of origination (unless a current appraisal has been obtained as a result of the loan being deemed impaired).
The Company maintains a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. This risk rating is reviewed periodically and adjusted if necessary. Monthly, management presents monitored assets to the Loan Committee. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the provision for credit losses on loans and the allowance for credit losses for loans held-for-investment. After determining the loss factor for each portfolio segment held-for-investment, the collectively evaluated for impairment balance of the held-for-investment portfolio is multiplied by the collectively evaluated for impairment loss factor for the respective portfolio segment in order to determine the allowance for loans collectively evaluated for impairment.
When assigning a credit risk rating to a loan, management utilizes the Bank’s internal nine-point credit risk rating system.
1.Strong
2.Good
3.Acceptable
4.Adequate
5.Watch
6.Special Mention
7.Substandard
8.Doubtful
9.Loss
Loans rated 1 to 5 are considered pass ratings. An asset is classified substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses, are required to be designated special mention.
17
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following table presents the Company’s loans held-for-investment and current period gross charge-offs, excluding PCD loans, by loan class, credit risk ratings and year of origination, at June 30, 2025 (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
| Construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Total construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
| Total real estate loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total other | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans held-for-investment | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Total current-period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
18
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following table presents the Company’s loans held-for-investment and current period gross charge-offs, excluding PCD loans, by loan class, credit risk ratings and year of origination, at December 31, 2024 (in thousands):
December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||
| Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||||||||||||||
| Construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Total construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
| Total real estate loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
| Total other | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans held-for-investment | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Total current-period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
19
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Past Due and Non-Accrual Loans
Included in loans receivable held-for-investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers (excluding PCD loans). The recorded investment of these non-accrual loans was $12.9 million and $14.3 million at June 30, 2025, and December 31, 2024, respectively. Generally, originated loans are placed on non-accrual status when they become 90 days or more delinquent, or sooner if considered appropriate by management, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the revised loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on non-accruing status.
When an individual loan no longer demonstrates the similar credit risk characteristics as other loans within its current segment, the Company evaluates each for expected credit losses on an individual basis. All non-accrual loans $500,000 and above and all loans designated as Troubled Debt Restructurings (“TDRs”) prior to the adoption of Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”) on January 1, 2023, are individually evaluated. See “Loan Modifications Made to Borrowers Experiencing Financial Difficulty” section below for more information. The non-accrual amounts included in loans individually evaluated for impairment were $8.8 million and $9.6 million at June 30, 2025, and December 31, 2024, respectively. Loans on non-accrual status with principal balances less than $500,000 , and therefore not meeting the Company's definition of an impaired loan, amounted to $4.1 million and $4.7 million at June 30, 2025, and December 31, 2024, respectively. Loans past due 90 1.2 million and $1.2 million at June 30, 2025, and December 31, 2024, respectively, and consisted of loans that are well-secured and in the process of collection.
The following tables set forth the detail, and delinquency status, of non-performing loans (non-accrual loans and loans past due 90
| June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Total Non-Performing Loans | |||||||||||||||||||||||||||||||||||
| Non-Accruing Loans | |||||||||||||||||||||||||||||||||||
| Current | 30-89 Days Past Due | 90 Days or More Past Due | Total | 90 Days or More Past Due and Accruing | Total Non-Performing Loans | ||||||||||||||||||||||||||||||
| Loans held-for-investment: | |||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||
| Substandard | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Total real estate | |||||||||||||||||||||||||||||||||||
| Commercial and industrial loans | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial and industrial loans | |||||||||||||||||||||||||||||||||||
| Total non-performing loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
At June 30, 2025, the Company did not have any non-accrual loans held-for-sale.
20
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Total Non-Performing Loans | |||||||||||||||||||||||||||||||||||
| Non-Accruing Loans | |||||||||||||||||||||||||||||||||||
| Current | 30-89 Days Past Due | 90 Days or More Past Due | Total | 90 Days or More Past Due and Accruing | Total Non-Performing Loans | ||||||||||||||||||||||||||||||
| Loans held-for-investment: | |||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||
| Substandard | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Total real estate | |||||||||||||||||||||||||||||||||||
| Commercial and industrial loans | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial and industrial loans | |||||||||||||||||||||||||||||||||||
| Total non-performing loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
At December 31, 2024, the Company had non-accrual loans held-for-sale of $4.9 million, which are not included in the above table.
21
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following tables set forth the detail and delinquency status of loans held-for-investment, excluding PCD loans, net of deferred fees and costs, at June 30, 2025, and December 31, 2024 (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Past Due Loans | |||||||||||||||||||||||||||||||||||
| 30-89 Days Past Due | 90 Days or More Past Due | 90 Days or More Past Due and Accruing | Total Past Due | Current | Total Loans Receivable, net | ||||||||||||||||||||||||||||||
| Loans held-for-investment: | |||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Construction and land | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Total construction and land | |||||||||||||||||||||||||||||||||||
| Total real estate | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial and industrial | |||||||||||||||||||||||||||||||||||
| Other loans | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total other loans | |||||||||||||||||||||||||||||||||||
| Total loans held-for-investment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
22
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Past Due Loans | |||||||||||||||||||||||||||||||||||
| 30-89 Days Past Due | 90 Days or More Past Due | 90 Days or More Past Due and Accruing | Total Past Due | Current | Total Loans Receivable, net | ||||||||||||||||||||||||||||||
| Loans held-for-investment: | |||||||||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total multifamily | |||||||||||||||||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial mortgage | |||||||||||||||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total one-to-four family residential | |||||||||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total home equity and lines of credit | |||||||||||||||||||||||||||||||||||
| Construction and land | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Total construction and land | |||||||||||||||||||||||||||||||||||
| Total real estate | |||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total commercial and industrial | |||||||||||||||||||||||||||||||||||
| Other loans | |||||||||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||||||||
| Total other loans | |||||||||||||||||||||||||||||||||||
| Total loans held-for-investment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
23
Table of Contents
NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following tables summarize information on non-accrual loans, excluding PCD loans, as of June 30, 2025, and December 31, 2024 (in thousands):
| June 30, 2025 | ||||||||||||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | With No Related Allowance | ||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||||
| Multifamily | $ | $ | $ | |||||||||||||||||||||||
| Commercial mortgage | ||||||||||||||||||||||||||
| Home equity and lines of credit | ||||||||||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||||||||
| Total non-accrual loans | $ | $ | $ | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | With No Related Allowance | |||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| Multifamily | $ | $ | $ | ||||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||
| Total non-accrual loans | $ | $ | $ | ||||||||||||||||||||
The following table summarizes interest income recognized on non-accrual loans, excluding PCD loans, during the three and six months ended June 30, 2025 and June 30, 2024 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| Multifamily | $ | $ | $ | $ | |||||||||||||||||||
| Commercial mortgage | |||||||||||||||||||||||
| One-to-four family residential | |||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||
| Total interest income on non-accrual loans | $ | $ | $ | $ | |||||||||||||||||||
Collateral-Dependent Loans
Loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating exposure to credit risk and, where there is sufficient collateral, an allowance for credit losses is not recognized or is minimal. For collateral-dependent loans, the allowance for credit losses is individually assessed based on the fair value of the collateral less estimated costs of sale. The Company's collateral-dependent loans are secured by real estate, inventory and equipment. Collateral values are generally based on appraisals, which are adjusted for changes in market indices. As of June 30, 2025, and December 31, 2024, the Company had $8.5 million and $8.7 million of collateral-dependent impaired loans, respectively. The collateral-dependent loans at June 30, 2025, consisted of $5.0 million of commercial real estate loans, $1.7 million of multifamily loans, $839,000 of commercial and industrial loans, and $986,000 of one-to-four family residential loans. For the six months ended June 30, 2025, there was no significant deterioration or changes in the collateral securing these loans.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
The Company has modified, and may modify in the future, certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay.
The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2025 and 2024, by class and by type of modification (dollars in thousands):
Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment Delay | Payment Delay and Interest Rate Reduction | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Percentage of Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment Delay | Term Extension (1) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reduction | Total | Percentage of Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment Delay | Payment Delay and Interest Rate Reduction | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reductions | Total | Percentage of Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment Delay | Term Extension (1) | Payment Delay and Term Extension | Payment Delay, Term Extension, and Interest Rate Reductions | Total | Percentage of Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
(1) Includes one loan with a balance of $13.4 million at June 30, 2024, that was risk rated substandard and was modified during the quarter ended June 30, 2024, to receive a maturity extension of 60 -days through July 1, 2024. This loan previously had multiple 90-day extensions. The loan was originally downgraded to substandard due to operating losses, however the debt service coverage ratio at June 30, 2024 was 1.58 x and the loan was adequately secured by eligible receivables of approximately $18 million and was current as of June 30, 2024.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025, and June 30, 2024 (in thousands):
| Weighted-Average Term Extension (in months) | Weighted-Average Interest Rate Reduction | ||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| Commercial and industrial | — | % | |||||||||||||||||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||
| Commercial and industrial | % | ||||||||||||||||||||||
| Weighted-Average Term Extension (in months) | Weighted-Average Interest Rate Reduction | ||||||||||||||||||||||
Six Months Ended June 30, 2025 | |||||||||||||||||||||||
| Commercial and industrial | — | % | |||||||||||||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||
| Commercial mortgage | % | ||||||||||||||||||||||
| Commercial and industrial | 3.4 | % | |||||||||||||||||||||
There were no commitments to lend additional funds at June 30, 2025 to borrowers experiencing financial difficulty whose terms have been restructured.
For modified loans, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified into non-accrual status during the reporting period. Of the loans modified during the preceding twelve months , there was one commercial and industrial loan with a balance of $13.4 million at June 30, 2024, that was risk rated substandard and had received multiple 90 -day extensions from the second quarter of 2023 through July 1, 2024. During the third quarter of 2024, the loan experienced credit deterioration and was put on non-accrual status. The loan received principal forgiveness of $878,000 in the third quarter of 2024 and made a payment of $10.0 million during the fourth quarter of 2024. The remaining $2.5 million balance of this loan was current as of June 30, 2025, but remains on non-accrual status. One other commercial and industrial loan with a balance of $227,000 at December 31, 2024, subsequently defaulted and was charged-off in full.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2025 and 2024 (in thousands):
As of June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Current | 30-89 Days Past Due | 90 Days or More Past Due | Non-Accrual | Total | ||||||||||||||||||||||||||||||||||
| Commercial Mortgage | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Home equity and lines of credit | $ | |||||||||||||||||||||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
As of June 30, 2024 | |||||||||||||||||||||||||||||
| Current | 30-89 Days Past Due | 90 Days or More Past Due | Non-Accrual | Total | |||||||||||||||||||||||||
| Commercial mortgage | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||
| Total loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
26
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Note 6 – Allowance for Credit Losses (“ACL”) on Loans
Allowance for Collectively Evaluated Loans Held-for-Investment
In estimating the quantitative component of the allowance on a collective basis, the Company uses a risk rating migration model which calculates an expected life of loan loss percentage for each loan by generating probability of default and loss given default metrics. These metrics are multiplied by the exposure at the potential default, taking into consideration estimated prepayments, to calculate the quantitative component of the ACL. The metrics are based on the migration of loans from performing to loss by credit risk rating or delinquency categories using historical life-of-loan analysis periods for each loan portfolio pool, and the severity of loss, based on the aggregate net lifetime losses incurred using the Company's own historical loss experience and comparable peer data loss history. The model's expected losses based on loss history are adjusted for qualitative adjustments to address risks that may not be adequately represented in the risk rating migration model. Among other things, these adjustments include and account for differences in: (i) changes in lending policies and procedures; (ii) changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of our portfolio, including the condition of various market segments; (iii) changes in the experience, ability and depth of lending management and other relevant staff; (iv) changes in the quality of our loan review system; (v) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (vi) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our existing portfolio.
The Company utilizes a two-year reasonable and supportable forecast period after which estimated losses revert to historical loss experience immediately for the remaining life of the loan. In establishing its estimate of expected credit losses, the Company utilizes five externally-sourced forward-looking economic scenarios developed by Moody's Analytics (“Moody's”).
Management utilizes five different Moody's scenarios so as to incorporate uncertainties related to the economic environment. These scenarios, which range from more benign to more severe economic outlooks, include a “most likely outcome” (the “Baseline” scenario) and four less likely scenarios referred to as the “Upside” and “Downside” scenarios. Each scenario is assigned a weighting with a majority of the weighting placed on the Baseline scenario and lower weights placed on both the Upside and Downside scenarios. The weighting assigned by management is based on the economic outlook and available information at the reporting date. The model projects economic variables under each scenario based on detailed statistical analyses. The Company has identified and selected key variables that most closely correlated to its historical credit performance, which include: Gross domestic product, unemployment, and three collateral indices: the Commercial Property Price Index, the Commercial Property Price Apartment Index and the Case-Shiller Home Price Index.
Allowance for Individually Evaluated Loans
The Company measures specific reserves for individual loans that do not share common risk characteristics with other loans, consisting of all loans previously modified as TDRs (prior to the adoption of ASU 2022-02) and non-accrual loans with an outstanding balance of $500,000 or greater. Loans individually evaluated for impairment are assessed to determine whether the loan’s carrying value is not in excess of the estimated fair value of the collateral less cost to sell, if the loan is collateral-dependent, or the present value of the expected future cash flows, if the loan is not collateral-dependent. Management performs an evaluation of each individually evaluated loan and generally obtains updated appraisals as part of the evaluation. In addition, management adjusts estimated fair values down to appropriately consider recent market conditions, our willingness to accept a lower sales price to effect a quick sale, and costs to dispose of any supporting collateral. Determining the estimated fair value of underlying collateral (and related costs to sell) can be difficult in illiquid real estate markets and is subject to significant assumptions and estimates. Management employs an independent third-party management firm that specializes in appraisal preparation and review to ascertain the reasonableness of updated appraisals. Projecting the expected cash flows for TDRs (prior to the adoption of ASU 2022-02) which are not collateral-dependent is inherently subjective and requires, among other things, an evaluation of the borrower’s current and projected financial condition. Individually evaluated loans that have no impairment losses are not considered for collective allowances described above. Upon adoption of ASU 2022-02, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. At June 30, 2025, and December 31, 2024, the ACL for loans individually evaluated for impairment was $1.2 million and $1.3 million, respectively.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Allowance for Credit Losses – Off-Balance Sheet Exposures
An ACL for off-balance-sheet exposures represents an estimate of expected credit losses arising from off-balance sheet exposures such as loan commitments, standby letters of credit and unused lines of credit (loans already on the books). Commitments to fund unused lines of credit are agreements to lend additional funds to customers as long as there have been no violations of any of the conditions established in the agreements (original or restructured). Commitments to originate loans generally have a fixed expiration or other termination clauses, which may require payment of a fee. Since some of these loan commitments are expected to expire without being drawn upon, total commitments do not necessarily represent future cash requirements. The reserve for off-balance sheet exposures is determined using the Current Expected Credit Losses (“CECL”) reserve factor in the related funded loan segment, adjusted for an average historical funding rate. The allowance for credit losses for off-balance sheet credit exposures is recorded in other liabilities on the consolidated balance sheets and the corresponding provision is included in other non-interest expense.
The table below summarizes the allowance for credit losses for off-balance sheet credit exposures as of, and for, the three and six months ended June 30, 2025, and June 30, 2024 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
| Provision for credit losses | ( | ||||||||||||||||||||||
| Balance at end of period | $ | $ | $ | $ | |||||||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following tables set forth activity in our allowance for credit losses on loans, by loan type, as of, and for the three and six months ended June 30, 2025, and June 30, 2024 (in thousands):
Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions (credit) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions (credit) | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions (credit) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions (credit) | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The allowance for credit losses on loans increased to $36.1 million at June 30, 2025, compared to $35.2 million as of December 31, 2024, primarily due to an increase in general reserves related to a worsening macroeconomic forecast in the current quarter within our CECL model, an increase in specific reserves of $1.2 million, changes in model assumptions including a reduction in prepayment speeds, and higher net charge-offs. Partially offsetting the increase in reserves was a decline in loan balances.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated, individually and collectively, for impairment, and the related portion of the allowance for credit losses that is allocated to each loan portfolio segment, at June 30, 2025, and December 31, 2024 (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: PCD loans evaluated for impairment (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: individually evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: collectively evaluated for impairment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: PCD loans evaluated for impairment (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP loans not evaluated for impairment (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial (1) | One-to-Four Family | Home Equity and Lines of Credit | Construction and Land | Commercial and Industrial | Other | Total Loans (excluding PCD) | PCD | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: PCD loans evaluated for impairment (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans, net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: individually evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance: collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance: PCD loans evaluated for impairment (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PPP loans not evaluated for impairment (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Upon adoption of CECL, the Company elected to maintain pools of PCD loans that were previously accounted for under Accounting Standards Codification (“ASC”) 310-30, and will continue to evaluate PCD loans under this guidance.
(3) PPP loans are guaranteed by the SBA and therefore excluded from the allowance for credit losses.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Note 7 – Deposits
Deposit account balances are summarized as follows (in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Non-interest-bearing checking | $ | $ | |||||||||
| Negotiable orders of withdrawal (“NOW”) and interest-bearing checking | |||||||||||
| Savings and money market | |||||||||||
| Certificates of deposit | |||||||||||
| Total deposits | $ | $ | |||||||||
Interest expense on deposit accounts is summarized for the periods indicated (in thousands):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| NOW and interest-bearing checking, savings, and money market | $ | $ | $ | $ | |||||||||||||||||||
| Certificates of deposit | |||||||||||||||||||||||
| Total interest expense on deposit accounts | $ | $ | $ | $ | |||||||||||||||||||
Note 8 – Subordinated Debt
On June 17, 2022, the Company issued $62.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “Notes”) to certain institutional investors. The Notes mature on June 30, 2032, unless redeemed earlier. The Notes initially bear interest, payable semi-annually in arrears, at a fixed rate of 5.00 % per annum until June 30, 2027. Beginning June 30, 2027 and until maturity or redemption, the interest rate applicable to the outstanding principal amount of the Notes due will reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate plus 200 basis points, payable quarterly in arrears. The Company has the option to redeem the Notes, at par and in whole or in part, beginning on June 30, 2027 and to redeem the Notes at any time in whole upon certain other events. Any redemption of the Notes will be subject to prior regulatory approval to the extent required. Debt issuance costs totaled $1.1 million and are being amortized to maturity. At June 30, 2025, and December 31, 2024, subordinated debt totaled $61.6 million and $61.4 million, respectively, which included $446,000 and $558,000 , respectively, of unamortized debt issuance costs. The Company recognized amortization expense of $56,000 and $112,000 for the three and six months ended June 30, 2025, respectively. The Company recognized amortization expense of $56,000 and $112,000 for the three and six months ended June 30, 2024, respectively.
Note 9 – Equity Incentive Plans
The following table is a summary of the Company’s stock options outstanding as of June 30, 2025, and changes therein during the six months then ended.
| Number of Stock Options | Weighted Average Grant Date Fair Value | Weighted Average Exercise Price | Weighted Average Contractual Life (years) | ||||||||||||||||||||
| Outstanding and Exercisable - December 31, 2024 | $ | $ | |||||||||||||||||||||
| Forfeited or expired | ( | — | |||||||||||||||||||||
| Outstanding and Exercisable - June 30, 2025 | |||||||||||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
During the first and second quarters of 2025, the Company granted to directors and employees, under the 2019 Equity Incentive Plan, 238,186 2.8 41,679 one year 6,183 vest in equal installments over a two-year period beginning one year 190,324 vest in equal installments over a three-year period beginning one year 59,735 697,000 three-year 0 225
The following is a summary of the status of the Company’s restricted stock awards and performance-based restricted stock units at June 30, 2025, and changes therein during the six months then ended.
| Restricted Stock Awards | Weighted Average Grant Date Fair Value | Performance Stock Awards | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
| Non-vested at December 31, 2024 | $ | $ | |||||||||||||||||||||
| Granted | |||||||||||||||||||||||
| Vested | ( | ||||||||||||||||||||||
| Forfeited | ( | ||||||||||||||||||||||
| Non-vested at June 30, 2025 | |||||||||||||||||||||||
Expected future stock award expense related to the non-vested restricted share awards as of June 30, 2025, was $3.7 million over a weighted average period of 1.8 years. Expected future stock award expense related to the non-vested performance share awards as of June 30, 2025, was $900,000 over a weighted average period of 1.8 years.
During the three months ended June 30, 2025, and June 30, 2024, the Company recorded $784,000 and $295,000 , respectively, of stock-based compensation related to the above plan. During the six months ended June 30, 2025 and June 30, 2024, the Company recorded $1.5 million and $915,000 , respectively, of stock-based compensation related to the above plan.
Note 10 – Fair Value Measurements
The following tables present the assets reported on the consolidated balance sheets at their estimated fair value as of June 30, 2025, and December 31, 2024, by level within the fair value hierarchy as required by the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) ASC. Financial assets and liabilities are classified in their entirety based on the level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
•Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
•Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means.
•Level 3 Inputs – Significant unobservable inputs that reflect the Company’s own assumptions that market participants would use in pricing the assets or liabilities.
The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 16 to the Consolidated Financial Statements of the Company’s 2024 Annual Report on Form 10-K.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Fair Value Measurements at June 30, 2025 Using: | |||||||||||||||||||||||||||||
| Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Measured on a recurring basis: | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||
| Debt securities available-for-sale: | |||||||||||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | $ | |||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||||||||
| GSE | |||||||||||||||||||||||||||||
| REMICs: | |||||||||||||||||||||||||||||
| GSE | |||||||||||||||||||||||||||||
| Total mortgage-backed securities | |||||||||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||||||||
| Municipal bonds | |||||||||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||||||||
| Total debt securities available-for-sale | |||||||||||||||||||||||||||||
| Trading securities | |||||||||||||||||||||||||||||
Equity securities (1) | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
| Measured on a non-recurring basis: | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Loans individually evaluated for impairment: | |||||||||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | |||||||||||||||||||||||||
| Multifamily | |||||||||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||||||||
| Total individually evaluated real estate loans | |||||||||||||||||||||||||||||
| Commercial and industrial loans | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
(1) Excludes investment measured at net asset value of $5.0 million at June 30, 2025, which has not been classified in the fair value hierarchy.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Fair Value Measurements at December 31, 2024 Using: | |||||||||||||||||||||||
| Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Measured on a recurring basis: | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||
| Debt securities available-for-sale: | |||||||||||||||||||||||
| U.S. Government agency securities | $ | $ | $ | $ | |||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Pass-through certificates: | |||||||||||||||||||||||
| GSE | |||||||||||||||||||||||
| REMICs: | |||||||||||||||||||||||
| GSE | |||||||||||||||||||||||
| Total mortgage-backed securities | |||||||||||||||||||||||
| Other debt securities: | |||||||||||||||||||||||
| Municipal bonds | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Total debt securities available-for-sale | |||||||||||||||||||||||
| Trading securities | |||||||||||||||||||||||
Equity securities (1) | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
| Measured on a non-recurring basis: | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Loans individually evaluated for impairment: | |||||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | |||||||||||||||||||
| Multifamily | |||||||||||||||||||||||
| Home equity and lines of credit | |||||||||||||||||||||||
| Total individually evaluated real estate loans | |||||||||||||||||||||||
| Commercial and industrial loans | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
(1) Excludes investment measured at net asset value of $10.0 million at December 31, 2024, which has not been classified in the fair value hierarchy.
The following table presents qualitative information for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2025 (dollars in thousands):
| Fair Value | Valuation Methodology | Unobservable Inputs | Range of Inputs | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Individually evaluated loans: | |||||||||||||||||||||||
| Commercial real estate | $ | Appraisals | Adjustments to selling costs | ||||||||||||||||||||
| Multifamily | Appraisals | Adjustments to selling costs | |||||||||||||||||||||
| Home equity and lines of credit | Discounted cash flows | Interest rates | |||||||||||||||||||||
| Commercial and industrial loans | Discounted cash flows | Interest rates | |||||||||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
The following table presents qualitative information for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2024 (dollars in thousands):
| Fair Value | Valuation Methodology | Unobservable Inputs | Range of Inputs | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Individually evaluated loans: | |||||||||||||||||||||||
| Commercial real estate | $ | Appraisals | Adjustments to selling costs | ||||||||||||||||||||
| Multifamily | Appraisals | Adjustments to selling costs | |||||||||||||||||||||
| Home equity and lines of credit | Discounted cash flows | Interest rates | |||||||||||||||||||||
| Commercial and industrial loans | Discounted cash flows | Interest rates | |||||||||||||||||||||
The valuation techniques described below were used to measure fair value of financial instruments in the tables below on a recurring basis and a non-recurring basis at June 30, 2025 and December 31, 2024.
Debt Securities Available for Sale: The estimated fair values for mortgage-backed securities, corporate, and other debt securities are obtained from an independent nationally recognized third-party pricing service. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds. Broker/dealer quotes are utilized as well, when such quotes are available and deemed representative of the market. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Company (Observable Inputs), and are therefore classified as Level 2 within the fair value hierarchy. There were no transfers of securities between Level 1 and Level 2 during the six months ended June 30, 2025 or June 30, 2024.
Trading Securities: Fair values are derived from quoted market prices in active markets. The assets consist of publicly traded mutual funds.
Equity Securities: Fair values of equity securities consisting of publicly traded mutual funds are derived from quoted market prices in active markets.
Loans Individually Evaluated for Impairment: At June 30, 2025, and December 31, 2024, the Company had loans individually evaluated for impairment (excluding PCD loans) with outstanding principal balances of $11.0 million and $7.2 million, respectively, which were recorded at their estimated fair value of $7.4 million and $4.1 million, respectively. The Company recorded a net decrease in the specific reserve for impaired loans of $77,000 and $2,000 for the six months ended June 30, 2025, and June 30, 2024, respectively. Net charge-offs of $3.7 million and $2.6 million were recorded for the six months ended June 30, 2025, and June 30, 2024, respectively, utilizing Level 3 inputs. For purposes of estimating the fair value of impaired loans, management utilizes independent appraisals, if the loan is collateral-dependent, adjusted downward by management, as necessary, for changes in relevant valuation factors subsequent to the appraisal date, or the present value of expected future cash flows for non-collateral dependent loans and TDRs.
Other Real Estate Owned: At June 30, 2025, and December 31, 2024, the Company had no
In addition, the Company may be required, from time to time, to measure the fair value of certain other financial assets on a nonrecurring basis in accordance with U.S. GAAP. The adjustments to fair value usually result from the application of lower-of-cost-or-market accounting or write downs of individual assets.
Fair Value of Financial Instruments:
The FASB ASC Topic for Financial Instruments requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The following methods and assumptions were used to estimate the fair value of other financial assets and financial liabilities not already discussed above:
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
(a) Cash and Cash Equivalents
Cash and cash equivalents are short-term in nature with original maturities of three months or less; the carrying amount approximates fair value. Certificates of deposit having original terms of six-months or less; the carrying value generally approximates fair value. Certificates of deposit with an original maturity of six months or greater; the fair value is derived from discounted cash flows.
(b) Debt Securities (Held-to-Maturity)
The estimated fair values for substantially all of our securities are obtained from an independent nationally recognized pricing service. The independent pricing service utilizes market prices of same or similar securities whenever such prices are available. Prices involving distressed sellers are not utilized in determining fair value. Where necessary, the independent third-party pricing service estimates fair value using models employing techniques such as discounted cash flow analysis. The assumptions used in these models typically include assumptions for interest rates, credit losses, and prepayments, utilizing market observable data where available.
(c) Investments in Equity Securities at Net Asset Value Per Share
The Company uses net asset value as a practical expedient to record its investment in a private SBA Loan Fund since the shares in the fund are not publicly traded, do not have a readily determinable fair value and the net asset value per share is calculated in a manner consistent with the measurement principles of an investment company.
(d) Federal Home Loan Bank of New York Stock
Federal Home Loan Bank of New York (“FHLBNY”) stock is carried at cost since this is the amount for which it could be redeemed. Due to restrictions placed on the transferability of FHLBNY stock it is not practical to determine the fair value as there is no active market for this stock.
(e) Loans (Held-for-Investment)
Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as originated and purchased, and further segregated by residential mortgage, construction, land, multifamily, commercial and consumer. Each loan category is further segmented into amortizing and non-amortizing and fixed and adjustable-rate interest terms and by performing and non-performing categories. The fair value of loans is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and non-performance risk of the loans.
(f) Loans (Held-for-Sale)
Held-for-sale loans are carried at the lower of aggregate cost or estimated fair value, less costs to sell, and therefore fair value is equal to carrying value.
(g) Deposits
The fair value of deposits with no stated maturity, such as interest and non-interest-bearing demand deposits, savings, NOW and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.
(h) Commitments to Extend Credit and Standby Letters of Credit
The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of off-balance sheet commitments is insignificant and therefore not included in the following table.
(i) Borrowings
The fair value of borrowed funds is estimated by discounting future cash flows based on rates currently available for debt with similar terms and remaining maturity.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
(j) Advance Payments by Borrowers for Taxes and Insurance
Advance payments by borrowers for taxes and insurance have no stated maturity; the fair value is equal to the amount currently payable.
(k) Derivatives
The fair value of the Company's derivatives is determined using discounted cash flow analysis using observable market-based inputs, which are considered Level 2 inputs.
The estimated fair values of the Company’s significant financial instruments at June 30, 2025, and December 31, 2024, are presented in the following tables (in thousands):
| June 30, 2025 | |||||||||||||||||||||||||||||
| Estimated Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Trading securities | |||||||||||||||||||||||||||||
| Debt securities available-for-sale | |||||||||||||||||||||||||||||
| Debt securities held-to-maturity | |||||||||||||||||||||||||||||
Equity securities (1) | |||||||||||||||||||||||||||||
| FHLBNY stock, at cost | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
| Net loans held-for-investment | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| FHLB advances and other borrowings (including securities sold under agreements to repurchase) | |||||||||||||||||||||||||||||
| Subordinated debentures, net of issuance costs | |||||||||||||||||||||||||||||
| Advance payments by borrowers for taxes and insurance | |||||||||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
(1) Excludes investment measured at net asset value of $5.0 million at June 30, 2025, which has not been classified in the fair value hierarchy.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
| December 31, 2024 | |||||||||||||||||||||||||||||
| Estimated Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Trading securities | |||||||||||||||||||||||||||||
| Debt securities available-for-sale | |||||||||||||||||||||||||||||
| Debt securities held-to-maturity | |||||||||||||||||||||||||||||
Equity securities (1) | |||||||||||||||||||||||||||||
| FHLBNY stock, at cost | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||
| Loans held-for-sale | |||||||||||||||||||||||||||||
| Net loans held-for-investment | |||||||||||||||||||||||||||||
| Derivative assets | |||||||||||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| FHLB advances and other borrowings (including securities sold under agreements to repurchase) | |||||||||||||||||||||||||||||
| Subordinated debentures, net of issuance costs | |||||||||||||||||||||||||||||
| Advance payments by borrowers for taxes and insurance | |||||||||||||||||||||||||||||
| Derivative liabilities | |||||||||||||||||||||||||||||
Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on-and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Note 11 – Earnings Per Share
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding during the period. For purposes of calculating basic earnings per share, weighted average common shares outstanding excludes unallocated employee stock ownership plan (“ESOP”) shares that have not been committed for release and unvested restricted stock and performance-based restricted stock units.
Diluted earnings per share is computed using the same method as basic earnings per share, but reflects the potential dilution that could occur if stock options were exercised and converted into common stock and unvested shares of restricted stock and performance-based restricted stock units vested. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period using the treasury stock method. When applying the treasury stock method, the assumed proceeds from option exercises and the average unamortized compensation costs related to unvested shares of restricted stock, performance-based restricted stock units and stock options were added. This sum was then divided by the average stock price for the period to calculate assumed shares repurchased. The excess of the number of shares issuable over the number of shares assumed to be repurchased is added to basic weighted average common shares to calculate diluted earnings per share.
The following is a summary of the Company’s earnings per share calculations and reconciliation of basic to diluted earnings per share for the periods indicated (in thousands, except per share data):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average shares outstanding-basic | |||||||||||||||||||||||
| Effect of non-vested restricted stock and stock, performance-based restricted stock units and options outstanding | |||||||||||||||||||||||
| Weighted average shares outstanding-diluted | |||||||||||||||||||||||
| Earnings per share-basic | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per share-diluted | $ | $ | $ | $ | |||||||||||||||||||
| Anti-dilutive shares | |||||||||||||||||||||||
Note 12 – Leases
The Company’s leases primarily relate to real estate property for branches and office space with terms extending from three months up to 30 years. At June 30, 2025, all of the Company’s leases are classified as operating leases, which are required to be recognized on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability.
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheets. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recorded at the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, at lease inception, over a similar term in determining the present value of lease payments. Certain leases include options to renew, with one or more renewal terms ranging from five to ten years . If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the right-of-use asset and lease liability.
At June 30, 2025, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $26.2 million and $30.3 million, respectively. At December 31, 2024, the Company’s operating lease right-of-use assets and operating lease liabilities included on the consolidated balance sheet were $27.8 million and $32.2 million, respectively. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. Variable lease payments include common area maintenance charges, real estate taxes, repairs and maintenance costs and utilities. Operating and variable lease expenses are recorded in occupancy expense on the consolidated statements of comprehensive income.
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
Supplemental lease information at or for the three and six months ended June 30, 2025, and June 30, 2024 is as follows (dollars in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Variable lease cost | |||||||||||||||||||||||
| Net lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Cash paid for amounts included in measurement of operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average remaining lease term | |||||||||||||||||||||||
| Weighted average discount rate | % | % | |||||||||||||||||||||
The following table summarizes lease payment obligations for each of the next five years and thereafter in addition to a reconcilement to the Company's current lease liability (in thousands):
| Year | Amount | ||||
| 2025 | $ | ||||
| 2026 | |||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| Thereafter | |||||
| Total lease payments | |||||
| Less: imputed interest | ( | ||||
| Present value of lease liabilities | $ | ||||
As of June 30, 2025, the Company had not entered into any leases that have not yet commenced.
Note 13 – Derivatives
The Company has interest rate derivatives resulting from a service provided to certain qualified borrowers in a loan-related transaction and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The interest rate swap agreement which the Company executed with the commercial borrower is collateralized by the borrower’s commercial real estate financed by the Company. The collateral exceeds the maximum potential amount of future payments under the credit derivative. As these interest rate swaps do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.
At June 30, 2025, the Company had 13 interest rate swaps with a notional amount of $92.6 million. At December 31, 2024, the Company had 13 interest rate swaps with a notional amount of $95.7 million. The Company recorded no
The table below presents the fair value of the derivatives as well as their location on the consolidated balance sheets (in thousands):
| Fair Value | ||||||||||||||
| Balance Sheet Location | June 30, 2025 | December 31, 2024 | ||||||||||||
| Other assets | $ | $ | ||||||||||||
| Other liabilities | ||||||||||||||
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NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements - (Continued)
(14) - Segment Information
The Company's reportable segment is determined by the Chief Operating Decision Maker (“CODM”), based upon information provided about the Company's products and services offered, primarily banking operations, originating loans and offering a variety of deposit products. The segment is also distinguished by the level of information provided by the CODM, who uses such information to review performance of various components of the business (such as branches) which are then aggregated if operating performance, products and services, and customers are similar. The CODM will evaluate the performance of the Company's business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company's segment and in the determination of allocating resources. The CODM uses the revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans and investments provide the revenues in the banking operations. Interest expense, provisions for credit losses, and payroll provide the significant expenses in the banking operations. The Company's operations are all domestic.
Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the CODM follows, inclusive of reconciliations of significant segment totals to the consolidated financial statements.
| Banking Segment | |||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | |||||||||||||||||||||||||
| Reconciliation of revenue | |||||||||||||||||||||||||||||
| Other revenues - non-interest income | |||||||||||||||||||||||||||||
| Total consolidated revenues | |||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||
| Segment net interest income and non-interest income | |||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Compensation and employee benefits | |||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | ( | ( | |||||||||||||||||||||||||||
Other segment items (1) (2) (3) | |||||||||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||||||||
| Segment expenses | |||||||||||||||||||||||||||||
| Segment net income | $ | $ | $ | $ | |||||||||||||||||||||||||
| Segment assets | $ | $ | $ | $ | |||||||||||||||||||||||||
| Total consolidated assets | $ | $ | $ | $ | |||||||||||||||||||||||||
(2) Includes depreciation expense of $809,000 and $1.6 million for the three and six months ended June 30, 2025, respectively, and $914,000 and $1.8 million for the three and six months ended June 30, 2024, respectively.
(3) Includes amortization expense of $2.4 million and $4.9 million for the three and six months ended June 30, 2025, respectively, and $1.5 million and $2.2 million for the three and six months ended June 30, 2024, respectively.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report contains certain “forward-looking statements,” which can be identified by the use of such words as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “annualized,” “could,” “may,” “should,” “will,” and words of similar meaning. These forward-looking statements include, but are not limited to:
•statements of our goals, intentions, and expectations;
•statements regarding our business plans, prospects, growth and operating strategies;
•statements regarding the quality of our loan and investment portfolios
•statements about our performance, financial condition and liquidity; and
•estimates of our risks and future costs and benefits.
These forward-looking statements are based on the current beliefs and expectations of our management and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
•general economic conditions, internationally, nationally, or in our market areas, including inflationary and/or recessionary pressures, employment prospects, fluctuations in residential and commercial real estate values and market conditions, military conflict, geopolitical risks, and downgrades of the U.S. credit rating;
•competition among depository and other financial institutions, including with respect to fees and interest rates;
•changes in the interest rate environment that reduce our margins and yields, or reduce the market value of our assets, including the fair value of financial instruments or our ability to originate loans;
•adverse changes in the securities or credit markets, and changes in investor sentiment;
•changes in laws, tax policies, government regulations or policies affecting financial institutions;
•changes in regulatory fees, assessments, and capital requirements;
•the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;
•changes in the quality and/or composition of our loan and securities portfolios, changes in prepayment speeds, charge-offs, and changes in the estimates or methodology used to determine our allowance for credit losses;
•changes in the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
•our ability to manage our liquidity, including unanticipated changes in our liquidity position, changes in our access to or the cost of funding, and our ability to secure alternate funding sources;
•our ability to enter new markets successfully and capitalize on growth opportunities;
•our ability to successfully integrate acquired entities;
•changes in consumer demand, spending, borrowing and savings habits;
•changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (the “FASB”), the Securities and Exchange Commission (the “SEC”), or the Public Company Accounting Oversight Board;
•cyber-attacks and fraud risks, computer viruses and other technological risks that may breach the security of our website or other systems (including critical third-parties) to obtain unauthorized access to confidential information and destroy data or disable our systems;
•technological enhancements;
•changes in our organization, compensation, and benefit plans;
•our ability to attract and/or retain key employees;
•changes in the value of our goodwill or other intangible assets;
•changes in the level of government support for housing finance;
•changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
•the ability of third-party providers to perform their obligations to us;
•the effects of natural or man-made disasters, climate change, severe weather conditions, or other extraordinary events beyond our control, and our ability to effectively respond to and manage these disruptions;
•changes in our ability to continue to pay dividends, either at current rates or at all;
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•operational or risk management failures by us or critical third parties;
•increased operational risks resulting from remote work;
•negative outcomes from claims or litigation;
•our ability to manage our reputation risks;
•our ability to timely and effectively implement our strategic initiatives;
•the disruption to local, regional, national and global economic activity caused by the spread of infectious disease, epidemics, pandemics, or other extraordinary events that are beyond our control and could impact our growth, operations, earnings and asset quality;
•changes in the financial condition, results of operations, or future prospects of issuers of securities that we own.
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Accordingly, you should not place undue reliance on such statements. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements after the date of this Quarterly Report on Form 10-Q, whether as a result of new information, future events or otherwise.
Critical Accounting Policies
Note 1 to the Company’s Audited Consolidated Financial Statements for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K, as supplemented by this report, contains a summary of significant accounting policies. Various elements of these accounting policies are subject to estimation techniques, valuation assumptions, and other subjective assessments. Certain assets are carried on the consolidated balance sheets at estimated fair value or the lower of cost or estimated fair value. Policies with respect to the methodologies used to determine the allowance for credit losses on loans and judgments regarding the valuation allowance against deferred tax assets are the most critical accounting policies because they are important to the presentation of the Company’s financial condition and results of operations, involve a higher degree of complexity, and require management to make subjective judgments which often require assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions, and estimates could result in material differences in the results of operations or financial condition. These critical accounting policies and their application are reviewed periodically and, at least annually, with the Audit Committee of the Board of Directors.
The accounting estimates relating to the allowance for credit losses remain "critical accounting estimates" for the following reasons:
•Changes in the provision for credit losses can materially affect our financial results;
•Estimates relating to the allowance for credit losses require us to utilize a reasonable and supportable forecast period based upon forward-looking economic scenarios in order to estimate probability of default and loss given default rates, which our Current Expected Credit Losses (“CECL”) methodology encompasses;
•The allowance for credit losses is influenced by factors outside of our control such as industry and business trends, as well as economic conditions such as trends in housing prices, interest rates, gross domestic product, inflation, and unemployment; and
•Judgment is required to determine whether the models used to generate the allowance for credit losses produce an estimate that is sufficient to encompass the current view of lifetime expected credit losses.
Our estimation process is subject to risks and uncertainties, including a reliance on historical loss and trend information that may not be representative of current conditions and indicative of future performance. Changes in such estimates could significantly impact our allowance and provision for credit losses. Accordingly, our actual credit loss experience may not be in line with our expectations.
For a further discussion of our critical accounting policies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024.
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Overview
This overview highlights selected information and may not contain all the information that is important to you in understanding our performance during the periods presented. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting estimates, you should read this entire document carefully, as well as our Annual Report on Form 10-K for the year ended December 31, 2024.
Net income was $17.4 million for the six months ended June 30, 2025, as compared to $12.2 million for the six months ended June 30, 2024. The increase in net income for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily the result of an increase in net interest income, attributable to lower funding costs and higher yields on interest-earning assets, partially offset by an increase in the provision for credit losses on loans. Net income for the six months ended June 30, 2025, included $580,000 of additional tax expense related to options that expired in May 2025. Net income for the six months ended June 30, 2024, included $795,000 of additional tax expense related to options that expired in June 2024, and $683,000 of severance expense. Basic and diluted earnings per common share were $0.43 for the six months ended June 30, 2025, compared to basic and diluted earnings per common share of $0.29 for the six months ended June 30, 2024. For the six months ended June 30, 2025, our return on average assets was 0.62%, as compared to 0.42% for the six months ended June 30, 2024. For the six months ended June 30, 2025, our return on average stockholders’ equity was 4.97% as compared to 3.52% for the six months ended June 30, 2024.
Comparison of Financial Condition at June 30, 2025 and December 31, 2024
Total assets increased by $12.9 million, or 0.2%, to $5.68 billion at June 30, 2025, from $5.67 billion at December 31, 2024. The increase was primarily due to an increase in available-for-sale debt securities of $200.2 million, or 18.2%, partially offset by decreases in loans receivable of $106.5 million, or 2.6%, cash and cash equivalents of $70.1 million, or 41.8%, and other assets of $9.6 million, or 20.4%.
Cash and cash equivalents decreased by $70.1 million, or 41.8%, to $97.6 million at June 30, 2025, from $167.7 million at December 31, 2024, as excess liquidity was deployed into purchasing higher-yielding mortgage-backed securities. Balances fluctuate based on the timing of receipt of security and loan repayments and deposit inflows and borrowings and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.
The Company’s available-for-sale debt securities portfolio increased by $200.2 million, or 18.2%, to $1.30 billion at June 30, 2025, from $1.10 billion at December 31, 2024. The increase was primarily attributable to purchases of mortgage-backed securities, partially offset by paydowns and maturities. At June 30, 2025, $1.27 billion 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 $29.7 million in corporate bonds, substantially all of which were investment grade, $684,000 in municipal bonds and $613,000 in U.S. Government agency securities at June 30, 2025. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $14.6 million and $276,000, respectively, at June 30, 2025, and $21.8 million and $400,000, respectively, at December 31, 2024. The decrease in unrealized losses from December 31, 2024, was due to a decrease in interest rates in 2025, causing market prices to increase. The effective duration of the securities portfolio at June 30, 2025 was 1.38 years.
Equity securities were $6.3 million at June 30, 2025 and $14.3 million at December 31, 2024. At June 30, 2025, equity securities were primarily comprised of an investment in a Small Business Administration ("SBA") Loan Fund. This investment in the SBA Loan Fund is utilized by the Bank to satisfy its Community Reinvestment Act lending requirements. The decrease in equity securities was due to a redemption, at par, of $5.0 million of our investment in the SBA Loan Fund during the quarter ended June 30, 2025, and a $3.0 million decrease in money market mutual funds.
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Loans held-for-investment, net, decreased by $101.6 million, or 2.5%, to $3.92 billion at June 30, 2025 from $4.02 billion at December 31, 2024, primarily due to a decrease in multifamily real estate loans, partially offset by increases in one-to-four family residential mortgage and home equity and lines of credit loans. The decrease in loan balances reflects the Company's continued strategic focus on managing concentration risk within its commercial and multifamily real estate loan portfolios, while maintaining disciplined loan pricing. Multifamily loans decreased $114.4 million, or 4.4%, to $2.48 billion at June 30, 2025 from $2.60 billion at December 31, 2024, commercial and industrial loans decreased $4.9 million, or 3.0%, to $158.5 million at June 30, 2025 from $163.4 million at December 31, 2024, commercial real estate loans decreased $3.7 million, or 0.4%, to $886.1 million at June 30, 2025 from $889.8 million at December 31, 2024, and construction and land loans decreased $3.6 million, or 10.0%, to $32.3 million at June 30, 2025 from $35.9 million at December 31, 2024. Partially offsetting these decreases was an increase in home equity and lines of credit of $12.8 million, or 7.3%, to $186.8 million at June 30, 2025 from $174.1 million at December 31, 2024, attributable to new originations, existing customers drawing down on their lines of credit, and decreases in paydowns, and an increase in one-to-four family residential loans of $12.5 million, or 8.3%, to $162.8 million at June 30, 2025 from $150.2 million at December 31, 2024, attributable to a combination of retail originations through our recently established mortgage department and the purchase of residential mortgage pools from other banks.
The following table represents the Company's loan balances and associated percentage of each major category in the Company's loan portfolio as of June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
| Real estate loans: | |||||||||||||||||||||||
| Multifamily | $ | 2,483,078 | 63.3 | % | $ | 2,597,484 | 64.6 | % | |||||||||||||||
| Commercial mortgage | 886,135 | 22.6 | 889,801 | 22.1 | |||||||||||||||||||
| One-to-four family residential mortgage | 162,750 | 4.2 | 150,217 | 3.7 | |||||||||||||||||||
| Home equity and lines of credit | 186,848 | 4.8 | 174,062 | 4.3 | |||||||||||||||||||
| Construction and land | 32,300 | 0.8 | 35,897 | 0.9 | |||||||||||||||||||
| Total real estate loans | 3,751,111 | 95.7 | % | 3,847,461 | 95.6 | % | |||||||||||||||||
| Commercial and industrial loans | 158,539 | 4.0 | 163,425 | 4.1 | |||||||||||||||||||
| Other loans | 2,008 | 0.1 | 2,165 | 0.1 | |||||||||||||||||||
| Total commercial and industrial and other loans | 160,547 | 4.1 | % | 165,590 | 4.2 | % | |||||||||||||||||
| Loans held-for-investment, net (excluding purchased credit-deteriorated (“PCD”) loans | 3,911,658 | 99.8 | 4,013,051 | 99.8 | |||||||||||||||||||
| PCD loans | 8,955 | 0.2 | 9,173 | 0.2 | |||||||||||||||||||
| Total loans held-for-investment, net | $ | 3,920,613 | 100.0 | % | $ | 4,022,224 | 100.0 | % | |||||||||||||||
The following table summarizes commercial mortgage real estate loans by property type and owner-occupied status as a percentage of the total commercial mortgage real estate portfolio as of June 30, 2025:
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June 30, 2025 | |||||||||||||||||||||||
| Concentration by Property Type | Percentage of Total | ||||||||||||||||||||||
| Amount | % of Total | Owner-Occupied | Non-Owner Occupied | ||||||||||||||||||||
| Office buildings | $ | 178,736 | 20.1 | % | 7.8 | % | 12.3 | % | |||||||||||||||
| Mixed use (majority of space is non-residential) | 159,263 | 18.0 | 2.6 | 15.4 | |||||||||||||||||||
| Retail | 138,931 | 15.7 | 2.3 | 13.4 | |||||||||||||||||||
| Warehousing | 123,810 | 14.0 | 12.6 | 1.4 | |||||||||||||||||||
| Manufacturing | 65,795 | 7.4 | 5.1 | 2.3 | |||||||||||||||||||
| Healthcare facilities | 59,449 | 6.7 | 5.3 | 1.4 | |||||||||||||||||||
| Accommodations (hotel/motel) | 48,911 | 5.5 | — | 5.5 | |||||||||||||||||||
| Services | 36,279 | 4.1 | 2.7 | 1.4 | |||||||||||||||||||
| Recreational | 12,343 | 1.4 | 1.3 | 0.1 | |||||||||||||||||||
| Schools/daycare | 12,298 | 1.4 | 1.1 | 0.3 | |||||||||||||||||||
| Restaurants | 4,991 | 0.6 | 0.3 | 0.3 | |||||||||||||||||||
| Other | 45,329 | 5.1 | 2.3 | 2.8 | |||||||||||||||||||
| Total commercial real estate loans | $ | 886,135 | 100.0 | % | 43.4 | % | 56.6 | % | |||||||||||||||
The Company obtains an appraisal of the real estate collateral securing a commercial real estate loan prior to originating the loan. The appraised value is used to calculate the ratio of the outstanding loan balance to the value of the real estate collateral, or loan-to-value ratio ("LTV"). The original appraisal is used to monitor the LTVs within the commercial real estate portfolio unless an updated appraisal is received, which may happen for a variety of reasons, including but not limited to payment delinquency, additional loan requests using the same collateral, and loan modifications. The following table presents the ranges in the LTVs of our commercial mortgage loans at June 30, 2025:
| LTV Range % | Number of Loans | Amount | ||||||||||||
| (Dollars in thousands) | ||||||||||||||
| 0 - 25 | 193 | $ | 72,932 | |||||||||||
| >25 - 50 | 247 | 320,609 | ||||||||||||
| >50 - 60 | 107 | 219,850 | ||||||||||||
| >60 - 70 | 80 | 230,217 | ||||||||||||
| >70 - 80 | 21 | 37,345 | ||||||||||||
| >80 - 90 | 1 | 174 | ||||||||||||
| >90 | 3 | 5,008 | ||||||||||||
| Total commercial real estate loans | 652 | $ | 886,135 | |||||||||||
The following table summarizes the commercial real estate portfolio by geographic region in which the loans were originated as a percentage of total commercial real estate loans as of June 30, 2025:
| Geographic Region | Amount | Percent | ||||||||||||
| (Dollars in thousands) | ||||||||||||||
| New York | $ | 470,083 | 53 | % | ||||||||||
| New Jersey | 389,195 | 44 | % | |||||||||||
| Pennsylvania and Other | 26,857 | 3 | % | |||||||||||
| Total commercial real estate loans | $ | 886,135 | 100 | % | ||||||||||
As of June 30, 2025, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 416%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which includes 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.
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Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At June 30, 2025, office-related loans represented $178.8 million, or 4.6% of our total loan portfolio, with an average balance of $1.8 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 39% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 49.9% in New York, 48.6% in New Jersey and 1.5% in Pennsylvania. At June 30, 2025, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.3 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. At June 30, 2025, multifamily loans that have some form of rent stabilization or rent control totaled $434.1 million, or 11% 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 50%. At June 30, 2025, our largest rent-regulated loan had a principal balance of $16.6 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.
Purchased credit-deteriorated (“PCD”) loans totaled $9.0 million and $9.2 million at June 30, 2025 and December 31, 2024, respectively. The majority of the PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $247,000 and $469,000, attributable to PCD loans for the three and six months ended June 30, 2025, as compared to $321,000 and $747,000 for the three and six months ended June 30, 2024, respectively. PCD loans had an allowance for credit losses of approximately $2.7 million at June 30, 2025.
Other assets decreased by $9.6 million, or 20.4%, to $37.4 million at June 30, 2025, from $46.9 million as of December 31, 2024. The decrease was primarily attributable to a decrease in deferred tax assets associated with a decrease in unrealized losses on the securities available-for-sale portfolio.
Total liabilities increased $7.3 million, or 0.1%, to $4.97 billion at June 30, 2025, from $4.96 billion at December 31, 2024. The increase was primarily attributable to an increase in borrowings of $165.5 million, partially offset by a decrease in deposits of $152.3 million. Brokered deposits decreased by $188.4 million, or 71.5%, as the Company placed less reliance on brokered deposits, which were used as a lower-cost alternative to borrowings in the fourth quarter of 2024. 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, excluding brokered deposits, increased $36.0 million, or 0.9%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $73.7 million in transaction accounts and $9.6 million in time deposits, partially offset by decreases of $29.2 million in savings accounts, and $18.0 million in money market accounts. Growth in transaction accounts was primarily due to new municipal relationships and new commercial customer relationships. The decrease in savings and money market accounts was due to a seasonal reduction in municipal and business customer deposit balances. Estimated gross uninsured deposits at June 30, 2025 were $1.87 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $940.6 million, leaving estimated uninsured deposits of approximately $929.2 million, or 23.1%, of total deposits. At December 31, 2024, estimated uninsured deposits, excluding fully collateralized uninsured governmental deposits and intercompany deposits, totaled $896.5 million, or 21.7% of total deposits.
Borrowed funds increased to $893.5 million at June 30, 2025, from $727.8 million at December 31, 2024, primarily due to a $55.0 million increase in borrowings under an overnight line of credit, and a $110.5 million increase in other borrowings. 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.
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The following table sets forth term borrowing maturities (excluding overnight borrowings, floating rate advances, and subordinated debt) and the weighted average rate by year at June 30, 2025 (dollars in thousands):
| Year | Amount | Weighted Average Rate | ||||||||||||
| 2025 | $ | 295,684 | 4.44% | |||||||||||
| 2026 | 148,000 | 4.36% | ||||||||||||
| 2027 | 173,000 | 3.19% | ||||||||||||
| 2028 | 154,288 | 3.96% | ||||||||||||
| $ | 770,972 | 4.05% | ||||||||||||
Total stockholders’ equity increased by $5.6 million to $710.3 million at June 30, 2025, from $704.7 million at December 31, 2024. The increase was attributable to net income of $17.4 million for the six months ended June 30, 2025, an $11.9 million 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 $2.0 million increase in equity award activity, partially offset by $15.0 million in stock repurchases and $10.7 million in dividend payments. On February 26, 2025, the Board of Directors of the Company approved a $5.0 million stock repurchase program, and on April 23, 2025, the Board of Directors approved a $10.0 million stock repurchase program. During the six months ended June 30, 2025, the Company repurchased 1.3 million shares of its common stock outstanding at an average price of $11.52 for a total of $15.0 million pursuant to the approved stock repurchase plans. As of June 30, 2025, the Company has no outstanding repurchase program.
Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024
Net Income. Net income was $17.4 million and $12.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Significant variances from the comparable prior year period are as follows: a $9.6 million increase in net interest income, a $4.9 million increase in the provision for credit losses on loans, a $1.3 million increase in non-interest income, a $920,000 decrease in non-interest expense, and a $1.7 million increase in income tax expense.
Interest Income. Interest income increased $3.6 million, or 3.1%, to $122.5 million for the six months ended June 30, 2025, from $118.9 million for the six months ended June 30, 2024, primarily due to a 25 basis point increase in the yield on interest-earning assets, due to higher yields on mortgage-backed securities and loans, partially offset by a $128.0 million, or 2.3%, decrease in the average balance of interest-earning assets. The decrease was primarily due to decreases in the average balance of loans of $175.5 million, the average balance of other securities of $275.8 million, and the average balance of interest-earning deposits in financial institutions of $128.1 million, partially offset by an increase in the average balance of mortgage-backed securities of $453.4 million. The changes reflect the purchase of higher-yielding mortgage-related securities with excess cash and proceeds from the maturities of other securities. The Company accreted interest income related to PCD loans of $469,000 for the six months ended June 30, 2025, as compared to $747,000 for the six months ended June 30, 2024. Interest income for the six months ended June 30, 2025, included loan prepayment income of $767,000 as compared to $561,000 for the six months ended June 30, 2024. Additionally, interest income for the six months ended June 30, 2025, included $609,000 of interest income related to the settlement of a non-accrual loan in May 2025.
Interest Expense. Interest expense decreased $6.0 million, or 9.6%, to $56.3 million for the six months ended June 30, 2025, as compared to $62.3 million for the six months ended June 30, 2024. The decrease was primarily due to a decrease in the average balance of interest-bearing liabilities of $141.5 million, or 3.3%, as well as a decrease in the cost of interest-bearing liabilities, which decreased by 18 basis points to 2.74% for the six months ended June 30, 2025, from 2.92% for the six months ended June 30, 2024. The average balance of interest-bearing liabilities decreased primarily due to a $378.9 million, or 35.2%, decrease in the average balance of borrowed funds which was primarily due to the repayment of borrowings from the Federal Reserve Bank in the fourth quarter of 2024. In January 2024, the Company borrowed $300.0 million from the Federal Reserve Bank through the Bank Term Funding Program (“BTFP”) at favorable terms and conditions and invested the proceeds in higher-yielding interest-bearing deposits in other financial institutions and investment securities. This was partially offset by a $237.2 million, or 7.5%, increase in the average balance of interest-bearing deposits, primarily certificates of deposit. The decrease in the cost of interest-bearing liabilities was driven primarily by an eight basis point decrease in the cost of interest-bearing deposits to 2.47% from 2.55% and a four basis point decrease in the cost of borrowings to 3.83% from 3.87%.
Net Interest Income. Net interest income for the six months ended June 30, 2025, increased $9.6 million, or 17.0%, to $66.2 million, from $56.6 million for the six months ended June 30, 2024, primarily due to a 42 basis point increase in net interest margin to 2.48% from 2.06% for the six months ended June 30, 2024. The increase in net interest margin was primarily due to higher yields on loans and mortgage-backed securities, coupled with a decrease in the cost of interest-bearing liabilities.
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Provision for Credit Losses. The provision for credit losses on loans increased by $4.9 million to $4.7 million for the six months ended June 30, 2025, compared to a benefit of $203,000 for the six months ended June 30, 2024, primarily due to an increase in general reserves related to a worsening macroeconomic forecast in the current quarter within our CECL model, an increase in specific reserves of $1.2 million, changes in model assumptions, including a reduction in prepayment speeds due to our annual process of recasting our CECL model inputs, and higher net charge-offs. Partially offsetting the increase in reserves was a decline in loan balances. Net charge-offs were $3.7 million for the six months ended June 30, 2025, primarily due to $3.2 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $2.6 million for the six months ended June 30, 2024. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $24.0 million at June 30, 2025.
Non-interest Income. Non-interest income increased by $1.3 million, or 21.0%, to $7.5 million for the six months ended June 30, 2025, compared to $6.2 million for the six months ended June 30, 2024. The increase was primarily due to an increase in income on bank-owned life insurance of $1.4 million, primarily related to the exchange of certain policies in the fourth quarter of 2024 which have higher yields, partially offset by a $178,000 decrease in gains on trading securities. Gains on trading securities in the six months ended June 30, 2025, were $709,000, as compared to gains of $887,000 in the six months ended June 30, 2024. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no 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. Non-interest expense decreased by $920,000, or 2.0%, to $44.4 million for the six months ended June 30, 2025, compared to $45.3 million for the six months ended June 30, 2024. The decrease was primarily due to a $650,000 decrease in employee compensation and benefits, primarily due to severance expense of $683,000 recorded during the six months ended June 30, 2024, and a $178,000 decrease in deferred compensation expense, which is described above, and had no effect on net income. Partially offsetting the decreases was higher stock compensation expense as the prior year included a credit of $461,000 related to performance stock awards not expected to vest. Additionally, there was a $456,000 decrease in advertising expense attributable to a change in marketing strategy and the timing of specific deposit and lending campaigns, and a $311,000 decrease in other expense. Partially offsetting the decreases was a $485,000 increase in professional fees related to outsourced audit services and recruitment fees.
Income Tax Expense. The Company recorded income tax expense of $7.2 million for the six months ended June 30, 2025, compared to $5.5 million for the six months ended June 30, 2024. The effective tax rate for the six months ended June 30, 2025, was 29.3% compared to 31.2% for the six months ended June 30, 2024. In May 2025, options granted in 2015 expired and resulted in additional tax expense of $580,000 for the six months ended June 30, 2025, as compared to options granted in 2014 that expired in June 2024 and resulted in additional tax expense of $795,000 for the six months ended June 30, 2024.
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The following table sets forth average balances, average yields and costs, and certain other information for the periods indicated.
For the Six Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Average Outstanding Balance | Interest | Average Yield/ Rate (1) | Average Outstanding Balance | Interest | Average Yield/ Rate (1) | ||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans (2) | $ | 3,975,872 | $ | 91,944 | 4.66 | % | $ | 4,151,387 | $ | 92,014 | 4.46 | % | |||||||||||||||||||||||
Mortgage-backed securities (3) | 1,190,095 | 25,897 | 4.39 | 736,654 | 11,753 | 3.21 | |||||||||||||||||||||||||||||
Other securities (3) | 87,150 | 1,239 | 2.87 | 362,917 | 7,347 | 4.07 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank of New York stock | 37,078 | 1,590 | 8.65 | 39,153 | 1,905 | 9.78 | |||||||||||||||||||||||||||||
| Interest-earning deposits in financial institutions | 99,114 | 1,847 | 3.76 | 227,177 | 5,849 | 5.18 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 5,389,309 | 122,517 | 4.58 | 5,517,288 | 118,868 | 4.33 | |||||||||||||||||||||||||||||
| Non-interest-earning assets | 278,852 | 266,065 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 5,668,161 | $ | 5,783,353 | |||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Savings, NOW, and money market accounts | $ | 2,496,970 | 24,375 | 1.97 | % | $ | 2,477,334 | 25,514 | 2.07 | % | |||||||||||||||||||||||||
| Certificates of deposit | 895,335 | 17,101 | 3.85 | 677,800 | 14,423 | 4.28 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 3,392,305 | 41,476 | 2.47 | 3,155,134 | 39,937 | 2.55 | |||||||||||||||||||||||||||||
| Borrowed funds | 696,082 | 13,207 | 3.83 | 1,074,957 | 20,704 | 3.87 | |||||||||||||||||||||||||||||
| Subordinated debt | 61,489 | 1,647 | 5.40 | 61,266 | 1,656 | 5.44 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 4,149,876 | 56,330 | 2.74 | 4,291,357 | 62,297 | 2.92 | |||||||||||||||||||||||||||||
| Non-interest bearing deposits | 715,003 | 695,512 | |||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 94,934 | 101,339 | |||||||||||||||||||||||||||||||||
| Total liabilities | 4,959,813 | 5,088,208 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 708,348 | 695,145 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,668,161 | $ | 5,783,353 | |||||||||||||||||||||||||||||||
| Net interest income | $ | 66,187 | $ | 56,571 | |||||||||||||||||||||||||||||||
Net interest rate spread (4) | 1.84 | % | 1.41 | % | |||||||||||||||||||||||||||||||
Net interest-earning assets (5) | $ | 1,239,433 | $ | 1,225,931 | |||||||||||||||||||||||||||||||
Net interest margin (6) | 2.48 | % | 2.06 | % | |||||||||||||||||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 129.87 | % | 128.57 | % | |||||||||||||||||||||||||||||||
(1) Average yields and rates are annualized.
(2) Includes non-accruing loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs, which was not material.
(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.
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Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024
Net Income. Net income was $9.6 million and $6.0 million for the quarters ended June 30, 2025 and June 30, 2024, respectively. Significant variances from the comparable prior year quarter are as follows: a $5.7 million increase in net interest income, a $2.7 increase in the provision for credit losses on loans, a $1.7 million increase in non-interest income, and a $1.1 million increase in income tax expense.
Interest Income. Interest income increased $2.2 million, or 3.7%, to $62.4 million for the quarter ended June 30, 2025, from $60.2 million for the quarter ended June 30, 2024, primarily due to a 28 basis point increase in the yield on interest-earning assets due to higher yields on mortgage-backed securities and loans, partially offset by a $151.7 million, or 2.8%, decrease in the average balance of interest-earning assets. The decrease was primarily due to decreases in the average balance of other securities of $277.3 million, the average balance of loans of $183.3 million and the average balance of interest-earning deposits in financial institutions of $112.0 million, partially offset by an increase in the average balance of mortgage-backed securities of $422.3 million. The changes reflect the purchase of higher-yielding mortgage-related securities with excess cash and proceeds from the maturities of other securities. The Company accreted interest income related to PCD loans of $247,000 for the quarter ended June 30, 2025, as compared to $321,000 for the quarter ended June 30, 2024. Interest income for the quarter ended June 30, 2025, included loan prepayment income of $522,000, as compared to $210,000 for the quarter ended June 30, 2024. Additionally, interest income for the quarter ended June 30, 2025, included $609,000 of interest income related to the settlement of a non-accrual loan in May 2025.
Interest Expense. Interest expense decreased $3.5 million, or 11.1%, to $28.0 million for the quarter ended June 30, 2025, from $31.5 million for the quarter ended June 30, 2024. The decrease in interest expense was primarily due to a decrease in the average balance of interest-bearing liabilities of $177.0 million, or 4.1%, as well as a decrease in the cost of interest-bearing liabilities which decreased by 22 basis points to 2.73% for the three months ended June 30, 2025, from 2.95% for the three months ended June 30, 2024. The average balance of interest-bearing liabilities decreased primarily due to a $344.2 million, or 33.1% decrease in the average balance of borrowed funds which was primarily due to the repayment of borrowings from the Federal Reserve Bank under the BTFP in the fourth quarter of 2024. This was partially offset by a $167.0 million, or 5.2%, increase in the average balance of interest-bearing deposits, primarily certificates of deposit. The decrease in the cost of interest-bearing liabilities was driven by an 18 basis point decrease in the cost of interest-bearing deposits to 2.42% from 2.60%, partially offset by a 10 basis point increase in the cost of borrowed funds to 3.98% from 3.88%.
Net Interest Income. Net interest income for the quarter ended June 30, 2025, increased $5.7 million, or 19.9%, to $34.4 million, from $28.7 million for the quarter ended June 30, 2024, primarily due to a 48 basis point increase in net interest margin to 2.57% for the quarter ended June 30, 2025, from 2.09% for the quarter ended June 30, 2024. The increase in net interest margin was primarily due to higher yields on loans and mortgage-backed securities, coupled with a decrease in the cost of interest-bearing liabilities.
Provision for Credit Losses. The provision for credit losses on loans increased by $2.7 million to $2.1 million for the quarter ended June 30, 2025, from a benefit of $618,000 for the quarter ended June 30, 2024, primarily due to an increase in general reserves related to a worsening macroeconomic forecast in the current quarter within our CECL model, an increase in specific reserves of $1.2 million, and changes in model assumptions, including a reduction in prepayment speeds due to our annual process of recasting our CECL model inputs. Partially offsetting the increase in reserves was a decline in loan balances and lower net charge-offs. Net charge-offs were $887,000 for the quarter ended June 30, 2025, primarily due to $879,000 in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $1.6 million for the quarter ended June 30, 2024.
Non-interest Income. Non-interest income increased by $1.7 million, or 58.3%, to $4.5 million for the quarter ended June 30, 2025, from $2.9 million for the quarter ended June 30, 2024. The increase was primarily due to increases of $820,000 in gains on trading securities and $760,000 in income on bank-owned life insurance, primarily related to the exchange of certain policies in the fourth quarter of 2024 which have higher yields. Gains on trading securities in the three months ended June 30, 2025, were $1.0 million as compared to gains of $188,000 in the quarter ended June 30, 2024. Gains and losses on trading securities have no 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 its deferred compensation plan.
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Non-interest Expense. Non-interest expense remained stable at $23.0 million for both quarters ended June 30, 2025 and June 30, 2024. There was a $340,000 increase in employee compensation and benefits, primarily attributable to an $820,000 increase in deferred compensation expense, which is described above, and had no effect on net income, and a $493,000 increase in stock award expense as the prior year included a credit of $461,000 related to performance stock awards not expected to vest. Partially offsetting these increases was a decrease in medical benefit expense of $394,000 and severance expense of $683,000 which was recorded during the six months ended June 30, 2024. Additionally, there were increases of $225,000 in data processing costs attributable to an increase in core system expenses, $222,000 in professional fees primarily due to increased outsourced audit services and legal fees, and $106,000 in occupancy expense attributable to higher utility costs. Partially offsetting the increases were decreases of $188,000 in advertising expense attributable to a change in marketing strategy and the timing of specific deposit and lending campaigns, $475,000 in other expense primarily related to a recovery of costs attributable to the settlement of a non-accrual loan, as well as a decrease in miscellaneous expenses, and $156,000 in credit loss/(benefit) for off-balance sheet exposures. The decrease in credit loss expense/(benefit) for off-balance sheet exposure was due to a benefit of $53,000 recorded during the quarter ended June 30, 2025, as compared to a provision of $103,000 recorded during the quarter ended June 30, 2024.
Income Tax Expense. The Company recorded income tax expense of $4.3 million for the quarter ended June 30, 2025, compared to $3.2 million for the quarter ended June 30, 2024, with the increase due to higher taxable income. The effective tax rate for the quarter ended June 30, 2025 was 31.0%, compared to 35.0% for the quarter ended June 30, 2024. In May 2025, options granted in 2015 expired and resulted in additional tax expense of $580,000 for the quarter ended June 30, 2025, as compared to options granted in 2014 that expired in June 2024 and resulted in additional tax expense of $795,000 for the quarter ended June 30, 2024.
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The following table sets forth average balances, average yields and costs, and certain other information for the periods indicated.
| For the Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2025 | June 30, 2024 | ||||||||||||||||||||||||||||||||||
| Average Outstanding Balance | Interest | Average Yield/ Rate (1) | Average Outstanding Balance | Interest | Average Yield/ Rate (1) | ||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans (2) | $ | 3,944,822 | $ | 46,661 | 4.74 | % | $ | 4,128,105 | $ | 45,967 | 4.48 | % | |||||||||||||||||||||||
Mortgage-backed securities (3) | 1,246,843 | 13,888 | 4.47 | 824,498 | 7,355 | 3.59 | |||||||||||||||||||||||||||||
Other securities (3) | 56,559 | 442 | 3.13 | 333,855 | 3,506 | 4.22 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank of New York stock | 37,225 | 728 | 7.84 | 38,707 | 935 | 9.72 | |||||||||||||||||||||||||||||
| Interest-earning deposits in financial institutions | 79,463 | 706 | 3.56 | 191,470 | 2,457 | 5.16 | |||||||||||||||||||||||||||||
| Total interest-earning assets | 5,364,912 | 62,425 | 4.67 | 5,516,635 | 60,220 | 4.39 | |||||||||||||||||||||||||||||
| Non-interest-earning assets | 280,107 | 265,702 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 5,645,019 | $ | 5,782,337 | |||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Savings, NOW, and money market accounts | $ | 2,491,340 | 12,227 | 1.97 | % | $ | 2,490,372 | 13,183 | 2.13 | % | |||||||||||||||||||||||||
| Certificates of deposit | 867,268 | 8,058 | 3.73 | 701,272 | 7,481 | 4.29 | |||||||||||||||||||||||||||||
| Total interest-bearing deposits | 3,358,608 | 20,285 | 2.42 | 3,191,644 | 20,664 | 2.60 | |||||||||||||||||||||||||||||
| Borrowed funds | 696,874 | 6,916 | 3.98 | 1,041,035 | 10,041 | 3.88 | |||||||||||||||||||||||||||||
| Subordinated debt | 61,517 | 828 | 5.40 | 61,294 | 828 | 5.43 | |||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 4,116,999 | 28,029 | 2.73 | 4,293,973 | 31,533 | 2.95 | |||||||||||||||||||||||||||||
| Non-interest bearing deposits | 723,693 | 691,384 | |||||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 95,047 | 103,082 | |||||||||||||||||||||||||||||||||
| Total liabilities | 4,935,739 | 5,088,439 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 709,280 | 693,898 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,645,019 | $ | 5,782,337 | |||||||||||||||||||||||||||||||
| Net interest income | $ | 34,396 | $ | 28,687 | |||||||||||||||||||||||||||||||
Net interest rate spread (4) | 1.94 | % | 1.44 | % | |||||||||||||||||||||||||||||||
Net interest-earning assets (5) | $ | 1,247,913 | $ | 1,222,662 | |||||||||||||||||||||||||||||||
Net interest margin (6) | 2.57 | % | 2.09 | % | |||||||||||||||||||||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 130.31 | % | 128.47 | % | |||||||||||||||||||||||||||||||
(1) Average yields and rates are annualized.
(2) Includes non-accruing loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs, which was not material.
(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.
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Asset Quality
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 has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.0 million at June 30, 2025 and $9.2 million at December 31, 2024, respectively) as accruing, even though they may be contractually past due. At June 30, 2025, 2.3% of PCD loans were past due 30 to 89 days, and 25.5% were past due 90 days or more, as compared to 2.1% and 24.9%, respectively, at December 31, 2024.
Loans
The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at June 30, 2025 and December 31, 2024 (dollars in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Non-accrual loans: | |||||||||||
| Held-for-investment | |||||||||||
| Real estate loans: | |||||||||||
| Multifamily | $ | 2,521 | $ | 2,609 | |||||||
| Commercial mortgage | 4,555 | 4,578 | |||||||||
| Home equity and lines of credit | 1,264 | 1,270 | |||||||||
| Commercial and industrial | 4,517 | 5,807 | |||||||||
| Total non-accrual loans held-for-investment | 12,857 | 14,264 | |||||||||
| Loans delinquent 90 days or more and still accruing: | |||||||||||
| Held-for-investment | |||||||||||
| Real estate loans: | |||||||||||
| Multifamily | — | 164 | |||||||||
| Commercial mortgage | 74 | — | |||||||||
| One-to-four family residential | 871 | 882 | |||||||||
| Home equity and lines of credit | 177 | 140 | |||||||||
| Commercial and industrial | 121 | — | |||||||||
| Total loans delinquent 90 days or more and still accruing held-for-investment | 1,243 | 1,186 | |||||||||
| Non-performing loans held-for-sale | |||||||||||
| Commercial real estate loans | — | 4,397 | |||||||||
| Commercial and industrial | — | 500 | |||||||||
| Total non-performing loans held-for-sale | — | 4,897 | |||||||||
| Total non-performing loans | 14,100 | 20,347 | |||||||||
| Total non-performing assets | $ | 14,100 | $ | 20,347 | |||||||
| Non-performing loans to total loans | 0.36 | % | 0.51 | % | |||||||
| Non-performing assets to total assets | 0.25 | % | 0.36 | % | |||||||
| Accruing loans 30 to 89 days delinquent | $ | 4,076 | $ | 9,336 | |||||||
The decrease in non-performing loans held-for-sale from December 31, 2024, was due to repayment of the loans in full from a settlement agreement in bankruptcy.
Other Real Estate Owned
At June 30, 2025 and December 31, 2024, the Company had no assets acquired through foreclosure.
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Accruing Loans 30 to 89 Days Delinquent
Loans 30 to 89 days delinquent and on accrual status totaled $4.1 million and $9.3 million at June 30, 2025 and December 31, 2024, respectively.
The following table sets forth delinquencies for accruing loans by type and by amount at June 30, 2025 and December 31, 2024 (dollars in thousands):
| June 30, 2025 | December 31, 2024 | ||||||||||
| Held-for-investment | |||||||||||
| Real estate loans: | |||||||||||
| Multifamily | $ | 1,230 | $ | 2,831 | |||||||
| Commercial mortgage | 14 | 78 | |||||||||
| One-to-four family residential | 741 | 2,407 | |||||||||
| Home equity and lines of credit | 1,398 | 1,472 | |||||||||
| Commercial and industrial loans | 693 | 2,545 | |||||||||
| Other loans | — | 3 | |||||||||
| Total delinquent accruing loans held-for-investment | $ | 4,076 | $ | 9,336 | |||||||
The decrease in multifamily delinquencies was primarily due to one loan with a balance of $2.1 million at December 31, 2024, becoming current as of June 30, 2025. The decrease in one-to-four family residential delinquencies was primarily due to one loan with a balance of $1.2 million at December 31, 2024, becoming current as of June 30, 2025. The decrease in commercial and industrial delinquencies was largely related to $1.5 million in charge-offs on small business unsecured commercial and industrial loans.
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Rent-Regulated Multifamily Loans
Our multifamily loan portfolio at June 30, 2025 totaled $2.48 billion, or 63% of our total loan portfolio, of which $434.1 million, or 11.0%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).
| % Rent Regulated | Balance | % Portfolio Total NY Multifamily Portfolio | Average Balance | Largest Loan | LTV* | Debt Service Coverage Ratio (DSCR)* | 30-89 Days Delinquent | Non-Accrual | Special Mention | Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 0 | $ | 294,926 | 40.5 | % | $ | 1,229 | $ | 16,361 | 50.6% | 1.50x | $ | 155 | $ | 481 | $ | — | $ | 1,015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >0-10 | 4,673 | 0.6 | 1,558 | 2,097 | 50.6 | 1.33 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >10-20 | 18,258 | 2.5 | 1,404 | 2,818 | 48.4 | 1.59 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >20-30 | 19,159 | 2.6 | 2,129 | 5,417 | 48.1 | 1.55 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >30-40 | 15,884 | 2.2 | 1,324 | 3,012 | 43.2 | 1.74 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >40-50 | 21,438 | 2.9 | 1,261 | 2,701 | 46.7 | 1.68 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >50-60 | 9,222 | 1.3 | 1,537 | 2,299 | 39.1 | 1.80 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >60-70 | 21,815 | 3.0 | 2,727 | 11,102 | 53.2 | 1.50 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >70-80 | 22,038 | 3.0 | 2,449 | 4,855 | 47.3 | 1.55 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >80-90 | 19,547 | 2.7 | 1,150 | 3,113 | 45.9 | 1.66 | — | — | 1,118 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| >90-100 | 282,037 | 38.7 | 1,730 | 16,594 | 51.3 | 1.54 | — | 2,040 | 3,608 | 4,342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 728,997 | 100.0 | % | $ | 1,467 | $ | 16,594 | 50.2% | 1.54x | $ | 155 | $ | 2,521 | $ | 4,726 | $ | 5,357 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The table below sets forth our New York rent-regulated loans by county (dollars in thousands):
| County | Balance | LTV* | DSCR* | |||||||||||||||||||||||||||||
| Bronx | $ | 116,252 | 50.9% | 1.51x | ||||||||||||||||||||||||||||
| Kings | 184,424 | 49.4% | 1.58 | |||||||||||||||||||||||||||||
| Nassau | 2,145 | 35.7% | 2.13 | |||||||||||||||||||||||||||||
| New York | 48,532 | 46.0% | 1.62 | |||||||||||||||||||||||||||||
| Queens | 37,359 | 44.1% | 1.69 | |||||||||||||||||||||||||||||
| Richmond | 32,031 | 59.8% | 1.41 | |||||||||||||||||||||||||||||
| Westchester | 13,327 | 58.4% | 1.44 | |||||||||||||||||||||||||||||
| Total | $ | 434,070 | 49.9% | 1.56x | ||||||||||||||||||||||||||||
* Weighted Average
None of the loans that are rent-regulated in New York are interest-only. During the remainder of 2025, 13 loans with an aggregate principal balance of $23.6 million are scheduled to re-price.
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Liquidity and Capital Resources
Liquidity. The objective of our liquidity management is to ensure the availability of sufficient funds to meet financial commitments and deposit withdrawals, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.
The Bank's primary sources of funds are deposits, principal and interest payments on loans and securities, borrowed funds, the proceeds from maturing securities and short-term investments, and to a lesser extent, proceeds from the sales of loans and securities, and wholesale borrowings. The scheduled amortization of loans and securities, as well as proceeds from borrowed funds, are predictable sources of funds. Other funding sources, however, such as deposit inflows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”), which provides an additional source of short-term and long-term funding. The Bank also has short-term borrowing capabilities with the FRB. The Bank’s total short-term borrowed funds, excluding lease obligations, floating rate advances and an overnight line of credit, were $771.0 million at June 30, 2025, and had a weighted average interest rate of 4.05%. A total of $373.7 million of these borrowings will mature in less than one year. Short-term borrowed funds, excluding floating rate advances, were $658.5 million at December 31, 2024.
On June 17, 2022, the Company issued $62.0 million in aggregate principal amount of fixed to floating subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of June 30, 2032, and bear interest at a fixed rate of 5.00% until June 30, 2027. From July 2027 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month Secured Overnight Financing Rate plus 200 basis points.
The Bank has the ability to obtain additional funding from the FHLBNY of approximately $1.88 billion utilizing unencumbered securities of $804.7 million, loans of $1.07 billion, and encumbered securities of $1.9 million at June 30, 2025. Additionally, the Bank has remaining borrowing capacity utilizing encumbered securities through the FRB Discount Window of $218,000. The Bank expects to have sufficient funds available to meet current commitments in the normal course of business.
The Company has a diversified deposit base, and government deposits are collateralized by assets or letters of credit issued by the FHLBNY. Estimated gross uninsured deposits at June 30, 2025 were $1.87 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $940.6 million, leaving estimated net uninsured deposits of approximately $929.2 million, or 23.1% of total deposits. At December 31, 2024, estimated net uninsured deposits totaled $896.5 million, or 21.7% of total deposits.
Northfield Bancorp, Inc. (standalone) is a separate legal entity from the Bank and must provide for its own liquidity to pay dividends, repurchase its stock, and for other corporate purposes. Northfield Bancorp, Inc.'s primary source of liquidity is dividend payments from the Bank. At June 30, 2025, Northfield Bancorp, Inc. (standalone) had liquid assets of $19.1 million.
Capital Resources. Federal regulations require federally insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets of 8.0%, and a 4.0% Tier 1 capital to total assets leverage ratio. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements.
The federal banking agencies developed a “Community Bank Leverage Ratio” (“CBLR”) (the ratio of a bank’s tangible equity capital to average total consolidated assets) for financial institutions with assets of less than $10 billion. A qualifying community bank that exceeds this ratio will be deemed to be in compliance with all other capital and leverage requirements, including the capital requirements to be considered “well capitalized” under Prompt Corrective Action statutes. The federal banking agencies have approved 9% as the current minimum capital for the CBLR. Northfield Bank and Northfield Bancorp have elected to opt into the CBLR framework. The CBLR replaced the risk-based and leverage capital requirements in the generally applicable capital rules.
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At June 30, 2025, and December 31, 2024, as set forth in the following table, both Northfield Bank and Northfield Bancorp, Inc. exceeded all of the regulatory capital requirements to which they were subject at such dates.
| Northfield Bank | Northfield Bancorp, Inc. | For Capital Adequacy Purposes | For Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||
As of June 30, 2025: | |||||||||||||||||||||||
| CBLR | 12.56% | 12.09% | 9.00% | 9.00% | |||||||||||||||||||
As of December 31, 2024: | |||||||||||||||||||||||
| CBLR | 12.46% | 12.11% | 9.00% | 9.00% | |||||||||||||||||||
Off-Balance Sheet Arrangements and Contractual Obligations
In the normal course of operations, the Company engages in a variety of financial transactions that, in accordance with U.S. GAAP, are not recorded in the financial statements. These transactions primarily relate to lending commitments. These arrangements are not expected to have a material impact on the Company's results of operations or financial condition.
Commitments to fund unused lines of credit are agreements to lend additional funds to customers as long as there have been no violations of any of the conditions established in the agreements (original or restructured). Commitments to originate loans generally have a fixed expiration or other termination clauses, which may require payment of a fee. Since some of these loan commitments are expected to expire without being drawn upon, total commitments do not necessarily represent future cash requirements. At June 30, 2025, the reserve for commitments to fund unused lines of credit recorded in accrued expenses and other liabilities was $568,000.
For further information regarding our off-balance sheet arrangements and contractual obligations, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Accounting Pronouncements Not Yet Adopted
ASU No. 2023-09. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.
ASU No. 2024-03. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”, which improves financial reporting by requiring public entities to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. ASU 2024-03 is effective for the Company for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Management of Market Risk
General. A majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage-related securities and loans, generally have longer maturities than our liabilities, which consist primarily of deposits and wholesale borrowings. As a result, a principal part of our business strategy involves managing interest rate risk and limiting the exposure of our net interest income to changes in market interest rates. Accordingly, our Board of Directors has established a Management Asset-Liability Committee, comprised of our Senior Vice President (“SVP”) & Chief Investment Officer and Treasurer, who chairs this Committee, our President & Chief Executive Officer, our Executive Vice President (“EVP”) & Chief Risk Officer, our EVP & Chief Financial Officer, our EVP & Chief Lending Officer, our EVP & Chief Branch Administration, Deposit Operations & Business Development Officer, and other officers and staff as necessary or appropriate. This committee is responsible for, among other things, evaluating the interest rate risk inherent in our assets and liabilities, for recommending to the Risk Committee of our Board of Directors the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors.
We seek to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. As part of our ongoing asset-liability management, we currently use the following strategies to manage our interest rate risk:
•originating multifamily loans and commercial real estate loans that generally have shorter maturities than one-to-four family residential real estate loans and have higher interest rates that generally reset from five to ten years;
•investing in investment grade corporate securities and mortgage-backed securities; and
•obtaining general financing through lower-cost core deposits, brokered deposits, and longer-term FHLB advances and repurchase agreements.
Shortening the average term of our interest-earning assets by increasing our investments in shorter-term assets, as well as originating loans with variable interest rates, helps to match the maturities and interest rates of our assets and liabilities better, thereby reducing the exposure of our net interest income to changes in market interest rates.
Net Portfolio Value Analysis. We compute amounts by which the net present value of our assets and liabilities (net portfolio value or “NPV”) would change in the event market interest rates change over an assumed range of rates. Our simulation model uses a discounted cash flow analysis to measure the interest rate sensitivity of our NPV. Depending on current market interest rates, we estimate the economic value of these assets and liabilities under the assumption that interest rates experience an instantaneous and sustained increase or decrease of 100, 200, 300, or 400 basis points, which is based on the current interest rate environment. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3% to 4% would mean, for example, a 100 basis point increase in the “Change in Interest Rates” column below.
Net Interest Income Analysis. In addition to NPV calculations, we analyze our sensitivity to changes in interest rates through our net interest income model. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. In our model, we estimate what our net interest income would be for a twelve-month period. Depending on current market interest rates we then calculate what the net interest income would be for the same period under the assumption that interest rates experience an instantaneous and sustained increase or decrease of 100, 200, 300, or 400 basis points, which is based on the current interest rate environment.
The following tables set forth, as of June 30, 2025, and December 31, 2024, our calculation of the estimated changes in our NPV, NPV ratio, and percent change in net interest income that would result from the designated instantaneous and sustained changes in interest rates (dollars in thousands). Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit repricing characteristics, including decay rates, and correlations to movements in interest rates, and should not be relied on as indicative of actual results.
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At June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in Interest Rates (basis points) | Estimated Present Value of Assets | Estimated Present Value of Liabilities | Estimated NPV | Estimated Change In NPV | Estimated Change in NPV % | Estimated NPV/Present Value of Assets Ratio | Next 12 Months Net Interest Income Percent Change | Months 13-24 Net Interest Income Percent Change | ||||||||||||||||||||||||||||||||||||||||||
| +400 | $ | 4,988,105 | $ | 4,347,992 | $ | 640,113 | $ | (181,693) | (22.11) | % | 12.83 | % | (15.41) | % | 0.39 | % | ||||||||||||||||||||||||||||||||||
| +300 | 5,107,554 | 4,420,229 | 687,325 | (134,481) | (16.36) | 13.46 | (10.32) | 1.39 | ||||||||||||||||||||||||||||||||||||||||||
| +200 | 5,246,499 | 4,495,890 | 750,609 | (71,197) | (8.66) | 14.31 | (4.99) | 2.98 | ||||||||||||||||||||||||||||||||||||||||||
| +100 | 5,373,329 | 4,575,349 | 797,980 | (23,826) | (2.90) | 14.85 | (1.38) | 2.70 | ||||||||||||||||||||||||||||||||||||||||||
| — | 5,480,851 | 4,659,045 | 821,806 | — | — | 14.99 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| (100) | 5,574,948 | 4,737,957 | 836,991 | 15,185 | 1.85 | 15.01 | 1.52 | (3.15) | ||||||||||||||||||||||||||||||||||||||||||
| (200) | 5,665,030 | 4,820,882 | 844,148 | 22,342 | 2.72 | 14.90 | 2.06 | (6.99) | ||||||||||||||||||||||||||||||||||||||||||
| (300) | 5,763,460 | 4,916,146 | 847,314 | 25,508 | 3.10 | 14.70 | 1.46 | (11.37) | ||||||||||||||||||||||||||||||||||||||||||
| (400) | 5,924,702 | 5,025,149 | 899,553 | 77,747 | 9.46 | 15.18 | (0.43) | (15.71) | ||||||||||||||||||||||||||||||||||||||||||
At December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in Interest Rates (basis points) | Estimated Present Value of Assets | Estimated Present Value of Liabilities | Estimated NPV | Estimated Change In NPV | Estimated Change in NPV % | Estimated NPV/Present Value of Assets Ratio | Next 12 Months Net Interest Income Percent Change | Months 13-24 Net Interest Income Percent Change | ||||||||||||||||||||||||||||||||||||||||||
| +400 | $ | 5,039,741 | $ | 4,296,533 | $ | 743,208 | $ | (93,542) | (11.18) | % | 14.75 | % | (15.51) | % | 1.73 | % | ||||||||||||||||||||||||||||||||||
| +300 | 5,132,034 | 4,368,409 | 763,625 | (73,125) | (8.74) | 14.88 | (10.48) | 2.16 | ||||||||||||||||||||||||||||||||||||||||||
| +200 | 5,235,010 | 4,443,676 | 791,334 | (45,416) | (5.43) | 15.12 | (5.12) | 3.32 | ||||||||||||||||||||||||||||||||||||||||||
| +100 | 5,338,932 | 4,522,702 | 816,230 | (20,520) | (2.45) | 15.29 | (1.68) | 2.51 | ||||||||||||||||||||||||||||||||||||||||||
| — | 5,442,680 | 4,605,930 | 836,750 | — | — | 15.37 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| (100) | 5,556,611 | 4,683,811 | 872,800 | 36,050 | 4.31 | 15.71 | 2.78 | (1.12) | ||||||||||||||||||||||||||||||||||||||||||
| (200) | 5,660,193 | 4,765,981 | 894,212 | 57,462 | 6.87 | 15.80 | 4.94 | (3.34) | ||||||||||||||||||||||||||||||||||||||||||
| (300) | 5,762,691 | 4,859,674 | 903,017 | 66,267 | 7.92 | 15.67 | 5.45 | (6.84) | ||||||||||||||||||||||||||||||||||||||||||
| (400) | 5,901,487 | 4,969,923 | 931,564 | 94,814 | 11.33 | 15.79 | 4.82 | (10.25) | ||||||||||||||||||||||||||||||||||||||||||
At June 30, 2025, in the event of a 400 basis point decrease in interest rates, we would experience a 9.46% increase in estimated net portfolio value, a 0.43% decrease in net interest income in year one, and a 15.71% decrease in net interest income in year two. In the event of a 400 basis point increase in interest rates, we would experience a 22.11% decrease in estimated net portfolio value, a 15.41% decrease in net interest income in year one and a 0.39% increase in net interest income in year two. Our policies provide that, in the event of a 200 basis point decrease or less in interest rates, our net present value ratio should decrease by no more than 300 basis points and 10%, and in the event of a 400 basis point increase or less, our net present value should decrease by no more than 475 basis points and 35%. In the event of a 200 basis point decrease or less, our projected net interest income should decrease by no more than 10% in year one and 20% in year two, and in the event of a 400 basis point increase or less, our projected net interest income should decrease by no more than 39% in year one and 26% in year two. At June 30, 2025, and December 31, 2024, we were in compliance with all Board-approved policies with respect to interest rate risk management.
Certain shortcomings are inherent in the methodologies used in determining interest rate risk through changes in net portfolio value and net interest income. Our model requires us to make certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. We also apply consistent parallel yield curve shifts (in both directions) to determine possible changes in net interest income if the theoretical yield curve shifts occurred gradually. Net interest income analysis also adjusts the asset and liability repricing analysis based on changes in prepayment rates resulting from the parallel yield curve shifts. In addition, the net portfolio value and net interest income information presented assume that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assume that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although interest rate risk calculations provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net portfolio value or net interest income and will differ from actual results.
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ITEM 4. CONTROLS AND PROCEDURES
An evaluation was performed under the supervision and with the participation of the Company’s management, including the President and Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended) as of June 30, 2025. Based on that evaluation, the Company’s management, including the President and Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.
During the three months ended June 30, 2025, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II
ITEM 1. LEGAL PROCEEDINGS
The Company and subsidiaries are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations.
ITEM 1A. RISK FACTORS
During the quarter ended June 30, 2025, there have been no material changes to the risk factors as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the Securities and Exchange Commission, except as previously disclosed in our other filings with the Securities and Exchange Commission.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
(a)Unregistered Sale of Equity Securities. There were no sales of unregistered securities during the period covered by this report.
(b)Use of Proceeds. Not applicable.
(c)Repurchases of Our Equity Securities.
On April 24, 2025, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in June 2025.
The following table reports information regarding purchases of the Company’s common stock during the three months ended June 30, 2025.
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in thousands) | ||||||||||||||||||||||
| April 1, 2025 to April 30, 2025 | 56,370 | $ | 10.37 | 56,370 | $ | 9,416 | ||||||||||||||||||||
| May 1, 2025 to May 31, 2025 | 484,817 | 11.62 | 484,817 | 3,781 | ||||||||||||||||||||||
| June 1, 2025 to June 30, 2025 | 321,282 | 11.77 | 321,282 | — | ||||||||||||||||||||||
| Total | 862,469 | 11.59 | 862,469 | |||||||||||||||||||||||
In addition to the repurchases disclosed above, participants in the Company's stock-based incentive plans may have shares withheld to cover income taxes upon the vesting of restricted stock awards. Shares withheld to cover income taxes upon the vesting of restricted stock awards are repurchased pursuant to the terms of the applicable plan and not under the Company's stock repurchase program. There were no shares repurchased pursuant to these plans during the three months ended June 30, 2025.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the three months ended June 30, 2025, no directors or executive officers of the Company adopted terminated
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ITEM 6. EXHIBITS
The following exhibits required by Item 601 of Regulation S-K are included with this Quarterly Report on Form 10-Q.
| Exhibit Number | Description | |||||||
31.1 | Certification of Steven M. Klein, Chairman, President and Chief Executive Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a).(1) | |||||||
31.2 | Certification of William R. Jacobs, Executive Vice President and Chief Financial Officer, Pursuant to Rule 13a-14(a) and Rule 15d-14(a).(1) | |||||||
32 | Certification of Steven M. Klein, Chairman, President and Chief Executive Officer, and William R. Jacobs, Executive Vice President and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(1) | |||||||
| 101.INS | XBRL (Extensible Business Reporting Language) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| 104 | Cover page information from the Company's Quarterly Report on Form 10-Q filed August 8, 2025, formatted in Inline XBRL. | |||||||
(1) Filed herewith.
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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 thereunto duly authorized.
NORTHFIELD BANCORP, INC.
(Registrant)
Date: August 8, 2025
| /s/ Steven M. Klein | ||
| Steven M. Klein | ||
| Chairman, President and Chief Executive Officer | ||
| /s/ William R. Jacobs | ||
| William R. Jacobs | ||
| Executive Vice President and Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
65
FAQ
What was Northfield Bancorp (NFBK) net income for Q2 2025?
Net income for the three months ended June 30, 2025 was $9.571 million.
How much did net interest income (NII) change for NFBK in Q2 2025?
Net interest income for the quarter was $34.396 million versus $28.687 million in Q2 2024.
How have NFBK's deposits and borrowings shifted?
Deposits declined to $3.986 billion from $4.138 billion at year-end; FHLB advances and other borrowings increased to $831.920 million.
What is Northfield's allowance for credit losses (ACL)?
The allowance for credit losses on loans was $36.120 million at June 30, 2025.
Did NFBK record trading gains or losses in Q2 2025?
Yes. The company reported $1.008 million of net gains on trading securities in the three months ended June 30, 2025.
How much cash and cash equivalents did NFBK hold at quarter-end?
Cash and cash equivalents at June 30, 2025 were $97.637 million.
Northfield Banco
NASDAQ:NFBK
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Jun 20, 2025
[144] Northfield Bancorp, Inc. SEC Filing
Jun 18, 2025
[144] Northfield Bancorp, Inc. SEC Filing
NFBK Stock Data
446.22M
36.29M
13.24%
60.49%
1.22%
Banks - Regional
Savings Institution, Federally Chartered
United States
WOODBRIDGE