Northfield Bancorp Inc is the holding company for Northfield Bank, which provides banking services to individuals and corporate customers in New York and New Jersey.
Performance Overview
Northfield Bancorp Inc (NFBK, Financial) reported diluted earnings per share (EPS) of $0.14 for Q2 2024, aligning with analyst estimates. The company achieved a net interest income of $28.7 million, surpassing the estimated revenue of $28.09 million. However, the EPS decreased from $0.15 in the previous quarter and $0.22 in Q2 2023.
Key Financial Metrics
Net interest income increased by $803,000, or 2.9%, over the trailing quarter, while the net interest margin expanded by six basis points to 2.09%. The average yield on interest-earning assets rose by 12 basis points to 4.39%, and the average cost of interest-bearing liabilities increased by six basis points to 2.95%.
Deposits (excluding brokered) decreased by $24 million, or 2.5% annualized, compared to the trailing quarter, but increased by $20 million, or 1.1% annualized, from December 31, 2023. The cost of deposits at June 30, 2024, was 2.10%, up from 2.07% at March 31, 2024.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $6.0 million | $6.2 million | $9.6 million |
| Diluted EPS | $0.14 | $0.15 | $0.22 |
| Net Interest Income | $28.7 million | $27.9 million | $31.2 million |
Balance Sheet and Cash Flow
Total assets increased by $148.0 million, or 2.6%, to $5.75 billion at June 30, 2024, from $5.60 billion at December 31, 2023. Loans held-for-investment, net, decreased by $112.4 million, or 2.7%, to $4.09 billion. The company maintained strong liquidity with approximately $622 million in unpledged available-for-sale securities and loans readily available-for-pledge of approximately $790 million.
Challenges and Strategic Focus
The decrease in net income for both the current quarter and the six months ended June 30, 2024, compared to the prior year periods, was primarily due to a decrease in net interest income, impacted by higher funding costs. Additionally, the company faced challenges with loan balances declining and increases in severance expenses and deferred tax asset write-offs.
"In the second quarter, the Northfield team remained focused on the fundamentals of serving our communities, developing and building on relationships, and improving upon our efficiencies," said Steven M. Klein, Chairman, President, and CEO.
Financial Achievements
Despite the challenges, Northfield Bancorp Inc (NFBK, Financial) managed to repurchase 988,758 shares for $8.7 million and declared a cash dividend of $0.13 per share, payable on August 21, 2024. The company also maintained strong asset quality, with non-performing loans to total loans remaining stable at 0.42%.
Conclusion
Northfield Bancorp Inc (NFBK, Financial) demonstrated resilience in Q2 2024, meeting EPS estimates and exceeding revenue expectations. The company's strategic focus on managing loan and deposit balances, maintaining strong asset quality, and controlling expenses will be crucial as it navigates the challenges posed by inflation and interest rate movements.
Explore the complete 8-K earnings release (here) from Northfield Bancorp Inc for further details.
