SEC Form 10-Q filed by Northfield Bancorp Inc.

5/10/24 11:49:52 AM ET

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from __________ to __________

Commission File Number: 001-35791

Northfield Bancorp, Inc.

(Exact name of registrant as specified in its charter)


Delaware						80-0882592
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

581 Main Street,

Woodbridge,

New Jersey

07095

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (732) 499-7200

Not Applicable

(Former name, 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

Common stock, par value $0.01 per share

NFBK

The NASDAQ Stock Market LLC

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	☐	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 April 30, 2024, the registrant had 44,344,225 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	40
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	54

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	55
Item 3.	Defaults Upon Senior Securities	56
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	56
	SIGNATURES	57


	March 31, 2024		December 31, 2023
ASSETS:
Cash and due from banks	$	13,550	$	13,889
Interest-bearing deposits in other financial institutions	225,231		215,617
Total cash and cash equivalents	238,781		229,506
Trading securities	12,726		12,549
Debt securities available-for-sale, at estimated fair value (with no allowance for credit losses at March 31, 2024 and December 31, 2023)	1,075,741		795,464
Debt securities held-to-maturity, at amortized cost	9,810		9,866
(estimated fair value of $9,364 at March 31, 2024, and $9,586 at December 31, 2023, with no allowance for credit losses at March 31, 2024 and December 31, 2023)
Equity securities	11,038		10,629

Loans held-for-investment	4,162,472		4,203,654
Less: allowance for credit losses	(37,039)		(37,535)
Net loans held-for-investment	4,125,433		4,166,119
Accrued interest receivable	19,358		18,491
Bank-owned life insurance	172,507		171,543
Federal Home Loan Bank (“FHLB”) of New York stock, at cost	39,848		39,667
Operating lease right-of-use assets	30,076		30,202
Premises and equipment, net	24,301		24,771
Goodwill	41,012		41,012

Other assets	50,974		48,577
Total assets	$	5,851,605	$	5,598,396

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits	$	3,921,323	$	3,878,435
Securities sold under agreements to repurchase	25,000		25,000
FHLB advances and other borrowings	1,039,621		834,272
Subordinated debentures, net of issuance costs	61,275		61,219
Operating lease liabilities	34,942		35,205
Advance payments by borrowers for taxes and insurance	30,202		25,102
Accrued expenses and other liabilities	40,813		39,718
Total liabilities	5,153,176		4,898,951

STOCKHOLDERS’ EQUITY:
Preferred stock, $0.01 par value: 25,000,000 shares authorized, none issued or outstanding	—		—
Common stock, $0.01 par value: 150,000,000 shares authorized, 64,770,875 shares issued at
March 31, 2024 and December 31, 2023, 44,462,652 and 44,524,929 outstanding at March 31, 2024 and December 31, 2023, respectively	648		648
Additional paid-in-capital	588,919		590,973
Unallocated common stock held by employee stock ownership plan	(14,124)		(14,340)
Retained earnings	433,878		433,227
Accumulated other comprehensive loss	(31,699)		(32,442)
Treasury stock at cost: 20,308,223 and 20,245,946 shares at March 31, 2024 and December 31, 2023, respectively	(279,193)		(278,621)
Total stockholders’ equity	698,429		699,445
Total liabilities and stockholders’ equity	$	5,851,605	$	5,598,396


	Three Months Ended March 31,
		2024		2023
Interest income:
Loans		$	46,047	$	43,707
Mortgage-backed securities		4,398		3,792
Other securities		3,841		1,385
FHLB of New York dividends		970		465
Deposits in other financial institutions		3,392		578
Total interest income		58,648		49,927
Interest expense:
Deposits		19,273		7,821
Borrowings		10,663		6,391
Subordinated debt		828		819
Total interest expense		30,764		15,031
Net interest income		27,884		34,896
Provision for credit losses		415		864
Net interest income after provision for credit losses		27,469		34,032
Non-interest income:
Fees and service charges for customer services		1,615		1,380
Income on bank-owned life insurance		964		870
Gains on available-for-sale debt securities, net		—		1
Gains on trading securities, net		699		512

Other		103		569
Total non-interest income		3,381		3,332
Non-interest expense:
Compensation and employee benefits		12,765		11,037
Occupancy		3,553		3,372
Furniture and equipment		484		454
Data processing		2,147		2,243
Professional fees		809		971
Advertising		518		847
Federal Deposit Insurance Corporation insurance		588		604
Credit loss expense for off-balance sheet exposures		83		111
Other		1,385		1,489
Total non-interest expense		22,332		21,128
Income before income tax expense		8,518		16,236
Income tax expense		2,304		4,529
Net income		$	6,214	$	11,707
Net income per common share:
Basic		$	0.15	$	0.26
Diluted		$	0.15	$	0.26


See accompanying notes to unaudited consolidated financial statements.


NORTHFIELD BANCORP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (Continued) (Unaudited) (In thousands)

	Three Months Ended March 31,
		2024		2023
Net income		$	6,214	$	11,707
Other comprehensive income:
Unrealized gains on debt securities available-for-sale:
Net unrealized holding gains		976		8,397
Less: reclassification adjustment for net gains included in net income		—		(1)
Net unrealized gains		976		8,396
Post-retirement benefits adjustment		58		—

Other comprehensive income before tax		1,034		8,396
Income tax expense related to net unrealized holding gains on debt securities available-for-sale		(275)		(2,350)

Income tax benefit related to post retirement benefit adjustment		(16)		—

Other comprehensive income, net of tax		743		6,046
Comprehensive income		$	6,957	$	17,753



	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, 2022	47,442,488	$	648	$	590,249	$	(15,650)	$	418,353	$	(48,331)	$	(243,879)	$	701,390
Net income								11,707						11,707
Other comprehensive income, net of tax										6,046				6,046
ESOP shares allocated or committed to be released				165		228								393
Stock compensation expense				718										718
Restricted stock issuance	173,060			(2,670)								2,670		—
Restricted stock forfeitures	(5,098)			77								(77)		—
Exercise of stock options, net	7,600			(7)								107		100
Cash dividends declared and paid ($0.13 per common share)								(5,912)						(5,912)
Repurchase of treasury stock (average cost of $14.68 per share)	(1,087,883)											(16,276)		(16,276)

Balance at March 31, 2023	46,530,167	$	648	$	588,532	$	(15,422)	$	424,148	$	(42,285)	$	(257,455)	$	698,166

Balance at December 31, 2023	44,524,929	$	648	$	590,973	$	(14,340)	$	433,227	$	(32,442)	$	(278,621)	$	699,445
Net income								6,214						6,214
Other comprehensive income, net of tax										743				743
ESOP shares allocated or committed to be released				67		216								283
Stock compensation expense				620										620
Restricted stock issuance	209,586			(2,747)								2,747		—
Restricted stock forfeitures	(467)			6								(6)		—

Cash dividends declared and paid ($0.13 per common share)								(5,563)						(5,563)
Purchase of employee restricted stock to fund statutory tax withholding	(18,765)											(223)		(223)
Repurchase of treasury stock (average cost of $12.17 per share)	(252,631)											(3,090)		(3,090)

Balance at March 31, 2024	44,462,652	$	648	$	588,919	$	(14,124)	$	433,878	$	(31,699)	$	(279,193)	$	698,429


	March 31, 2024
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
U.S. Treasuries	$	174,314	$	1	$	(1)	$	174,314
U.S. Government agency securities	75,801		—		(2,090)		73,711
Mortgage-backed securities:
Pass-through certificates:
Government sponsored enterprises ("GSEs")	343,285		1		(29,146)		314,140
Real estate mortgage investment conduits ("REMICs"):
GSE	412,485		694		(11,315)		401,864

Total mortgage-backed securities	755,770		695		(40,461)		716,004
Other debt securities:
Municipal bonds	765		—		(3)		762

Corporate bonds	113,136		83		(2,269)		110,950

	113,901		83		(2,272)		111,712
Total debt securities available-for-sale	$	1,119,786	$	779	$	(44,824)	$	1,075,741


Available-for-sale	Amortized cost		Estimated fair value
Due in one year or less	$	284,961	$	282,465
Due after one year through five years	75,056		73,923
Due after five years through ten years	3,999		3,349

	$	364,016	$	359,737


	March 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. Treasuries	$	(1)	$	24,861	$	—	$	—	$	(1)	$	24,861
U.S. Government agency securities	—		—		(2,090)		73,711		(2,090)		73,711
Mortgage-backed securities:
Pass-through certificates:
GSE	—		33		(29,146)		314,045		(29,146)		314,078
REMICs:
GSE	(71)		96,616		(11,244)		202,983		(11,315)		299,599

Other debt securities:
Municipal bonds	(3)		762		—		—		(3)		762
Corporate bonds	(8)		18,056		(2,261)		36,628		(2,269)		54,684


Total	$	(83)	$	140,328	$	(44,741)	$	627,367	$	(44,824)	$	767,695


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	9,810	$	52	$	(498)	$	9,364
Total securities held-to-maturity	$	9,810	$	52	$	(498)	$	9,364


	March 31,		December 31,
	2024		2023
Real estate loans:
Multifamily	$	2,715,919	$	2,750,996
Commercial mortgage	916,112		929,595
One-to-four family residential mortgage	156,276		160,824
Home equity and lines of credit	163,493		163,520
Construction and land	30,514		30,967
Total real estate loans	3,982,314		4,035,902
Commercial and industrial loans	168,564		155,268
Other loans	1,641		2,585
Total commercial and industrial and other loans	170,205		157,853

Loans held-for-investment (excluding purchased credit-deteriorated (“PCD”) loans)	4,152,519		4,193,755
PCD loans	9,953		9,899
Total loans held-for-investment	4,162,472		4,203,654
Allowance for credit losses	(37,039)		(37,535)
Net loans held-for-investment	$	4,125,433	$	4,166,119


	December 31, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Real Estate:
Multifamily
Pass	$	88,435	$	615,028	$	648,328	$	464,995	$	248,190	$	676,544	$	570	$	2,742,090
Special mention	—		—		—		—		—		328		—		328
Substandard	—		—		—		—		—		8,578		—		8,578
Total multifamily	88,435		615,028		648,328		464,995		248,190		685,450		570		2,750,996
Commercial
Pass	89,072		211,754		147,656		66,207		86,736		299,615		1,812		902,852
Special mention	—		—		8,528		—		—		4,369		—		12,897
Substandard	—		2,838		—		—		—		10,708		300		13,846
Total commercial	89,072		214,592		156,184		66,207		86,736		314,692		2,112		929,595
One-to-four family residential
Pass	6,747		26,198		12,039		8,321		9,064		96,569		829		159,767
Special mention	—		—		—		—		—		347		—		347
Substandard	—		—		—		—		—		710		—		710
Total one-to-four family residential	6,747		26,198		12,039		8,321		9,064		97,626		829		160,824
Home equity and lines of credit
Pass	23,400		33,022		14,316		7,179		5,353		13,658		65,287		162,215
Special mention	—		—		—		—		—		67		—		67
Substandard	—		627		423		24		89		75		—		1,238
Total home equity and lines of credit	23,400		33,649		14,739		7,203		5,442		13,800		65,287		163,520
Construction and land
Pass	4,877		6,091		630		10,236		1,192		7,291		650		30,967


Total construction and land	4,877		6,091		630		10,236		1,192		7,291		650		30,967
Total real estate loans	212,531		895,558		831,920		556,962		350,624		1,118,859		69,448		4,035,902
Commercial and industrial
Pass	17,197		26,075		17,485		2,727		2,602		7,296		65,603		138,985
Special mention	—		542		361		39		—		56		250		1,248
Substandard	—		847		13,843		132		45		168		—		15,035
Total commercial and industrial	17,197		27,464		31,689		2,898		2,647		7,520		65,853		155,268
Current period gross charge-offs	1,488		2,818		1,439		437		62		328		—		6,572
Other
Pass	2,463		—		—		53		—		23		39		2,578

Substandard	—		—		—		—		—		7		—		7
Total other	2,463		—		—		53		—		30		39		2,585
Total loans held-for-investment	$	232,191	$	923,022	$	863,609	$	559,913	$	353,271	$	1,126,409	$	135,340	$	4,193,755
Total current-period gross charge-offs	$	1,488	$	2,818	$	1,439	$	437	$	62	$	328	$	—	$	6,572


	Three Months Ended March 31, 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	$	—	$	—	$	396	$	299	$	695	0.08	%
Commercial and industrial	130		13,382		—		897		14,409		8.55	%
Total loans	$	130	$	13,382	$	396	$	1,196	$	15,104


	March 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	$	1,895	$	—	$	781	$	2,676	$	192	$	2,868
Total multifamily	1,895		—		781		2,676		192		2,868
Commercial


Substandard	5,154		2,594		2,932		10,680		—		10,680
Total commercial	5,154		2,594		2,932		10,680		—		10,680
One-to-four family residential


Substandard	74		—		27		101		137		238
Total one-to-four family residential	74		—		27		101		137		238





Home equity and lines of credit
Pass	—		—		—		—		1		1
Special mention	—		—		—				11		11
Substandard	21		—		1,104		1,125		112		1,237
Total home equity and lines of credit	21		—		1,104		1,125		124		1,249
Total real estate	7,144		2,594		4,844		14,582		453		15,035
Commercial and industrial loans


Substandard	572		—		1,628		2,200		—		2,200
Total commercial and industrial loans	572		—		1,628		2,200		—		2,200
Other loans
Substandard	6		—		—		6		—		6
Total other	6		—		—		6		—		6
Total non-performing loans	$	7,722	$	2,594	$	6,472	$	16,788	$	453	$	17,241


	March 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	$	171	$	—	$	—	$	171	$	2,706,535	$	2,706,706
Special mention	—		—		—		—		788		788
Substandard	—		781		192		973		7,452		8,425
Total multifamily	171		781		192		1,144		2,714,775		2,715,919
Commercial
Pass	863		—		—		863		881,523		882,386
Special mention	—		—		—		—		15,761		15,761
Substandard	3,837		2,932		—		6,769		11,196		17,965
Total commercial	4,700		2,932		—		7,632		908,480		916,112
One-to-four family residential
Pass	1,109		—		—		1,109		154,124		155,233
Special mention	62		—		—		62		281		343
Substandard	—		27		137		164		536		700
Total one-to-four family residential	1,171		27		137		1,335		154,941		156,276
Home equity and lines of credit
Pass	993		—		1		994		160,942		161,936
Special mention	36		—		11		47		273		320
Substandard	—		1,104		112		1,216		21		1,237
Total home equity and lines of credit	1,029		1,104		124		2,257		161,236		163,493
Construction and land
Pass	1,727		—		—		1,727		28,787		30,514


Total construction and land	1,727		—		—		1,727		28,787		30,514
Total real estate	8,798		4,844		453		14,095		3,968,219		3,982,314
Commercial and industrial
Pass	1,239		—		—		1,239		149,017		150,256
Special mention	19		—		—		19		534		553
Substandard	804		1,628		—		2,432		15,323		17,755
Total commercial and industrial	2,062		1,628		—		3,690		164,874		168,564
Other loans
Pass	—		—		—		—		1,635		1,635

Substandard	—		—		—		—		6		6
Total other loans	—		—		—		—		1,641		1,641
Total loans held-for-investment	$	10,860	$	6,472	$	453	$	17,785	$	4,134,734	$	4,152,519


	March 31, 2024
	Recorded Investment		Unpaid Principal Balance		With No Related Allowance
Real estate loans:
Multifamily	$	2,676	$	2,954	$	1,895
Commercial	10,680		11,126		8,433
One-to-four family residential	101		101		—
Home equity and lines of credit	1,125		1,374		—

Commercial and industrial	2,200		7,008		82
Other	6		6		—
Total non-accrual loans	$	16,788	$	22,569	$	10,410


	Weighted-Average Term Extension (in months)	Weighted-Average Interest Rate Reduction
Three Months Ended March 31, 2024
Commercial mortgage	60	3.00	%
Commercial and industrial	4.3	3.00	%


	As of March 31, 2024
	Current		30-89 Days Past Due		90 Days or More Past Due		Non-Accrual		Total
Commercial mortgage	$	—	$	—	$	—	$	929	$	929
Commercial and industrial	14,784		300		—		746		15,830
Total loans	$	14,784	$	300	$	—	$	1,675	$	16,759


	Three Months Ended March 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:
Beginning balance	$	23,255	$	3,285	$	1,705	$	149	$	6,050	$	6	$	34,450	$	3,085	$	37,535
Charge-offs	—		—		—		—		(950)		—		(950)		—		(950)
Recoveries	14		9		—		—		16		—		39		—		39
Provisions (credit)	(2,003)		(518)		594		(27)		2,391		(2)		435		(20)		415
Ending balance	$	21,266	$	2,776	$	2,299	$	122	$	7,507	$	4	$	33,974	$	3,065	$	37,039


	Three Months Ended March 31, 2023
	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	$	29,485	$	3,936	$	866	$	324	$	4,114	$	9	$	38,734	$	3,883	$	42,617
Charge-offs	—		—		—		—		(2,056)		—		(2,056)		(8)		(2,064)
Recoveries	5		—		—		—		14		—		19		—		19
Provisions (credit)	(1,460)		(349)		532		(38)		2,294		(2)		977		(113)		864
Ending balance	$	28,030	$	3,587	$	1,398	$	286	$	4,366	$	7	$	37,674	$	3,762	$	41,436


	March 31, 2024		December 31, 2023
Non-interest-bearing checking	$	693,671	$	694,903
Negotiable orders of withdrawal (“NOW”) and interest-bearing checking	1,277,161		1,231,943
Savings and money market	1,197,230		1,277,866
Certificates of deposit	753,261		673,723
Total deposits	$	3,921,323	$	3,878,435


	Number of Stock Options	Weighted Average Grant Date Fair Value		Weighted Average Exercise Price		Weighted Average Contractual Life (years)
Outstanding and Exercisable - December 31, 2023	1,544,306	$	4.03	$	14.05	1.01



Outstanding and Exercisable - March 31, 2024	1,544,306	4.03		14.05		0.76


	Number of Shares Awarded	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2023	364,083	$	14.34
Granted	237,721	13.28

Vested	(146,968)	14.34
Forfeited	(10,659)	12.43
Non-vested at March 31, 2024	444,177	13.82

SEC Form 10-Q filed by Northfield Bancorp Inc.

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