• Northfield Bancorp, Inc. Announces Fourth Quarter and Year End 2023 Results

    Source: Nasdaq GlobeNewswire / 24 Jan 2024 18:40:36   America/Chicago

    NOTABLE ITEMS INCLUDE:

    FOURTH QUARTER 2023

    • DILUTED EARNINGS PER SHARE OF $0.19 FOR THE FOURTH QUARTER OF 2023, COMPARED TO $0.19 FOR THE TRAILING QUARTER, AND $0.31 FOR THE FOURTH QUARTER OF 2022.
    • NET INTEREST MARGIN COMPRESSION SLOWED TO EIGHT BASIS POINTS COMPARED TO A NINE BASIS POINT DECREASE FOR THE QUARTER ENDED SEPTEMBER 30, 2023.
    • TOTAL DEPOSITS (EXCLUDING BROKERED) INCREASED BY APPROXIMATELY $110 MILLION, OR 12% ANNUALIZED, FROM SEPTEMBER 30, 2023.
    • COST OF DEPOSITS WAS 175 BASIS POINTS FOR THE CURRENT QUARTER AS COMPARED TO 146 BASIS POINTS FOR THE TRAILING QUARTER.
    • LOAN BALANCES DECLINED MODESTLY FROM SEPTEMBER 2023 WITH DECREASES IN MULTIFAMILY, COMMERCIAL MORTGAGE, ONE-TO FOUR FAMILY, AND CONSTRUCTION AND LAND LOANS BEING PARTIALLY OFFSET BY INCREASES IN HOME EQUITY LOANS AND LINES OF CREDIT, AND COMMERCIAL AND INDUSTRIAL LOANS.
    • CREDIT QUALITY REMAINS STRONG WITH NON-PERFORMING LOANS TO TOTAL LOANS AT 0.27% COMPARED TO 0.24% AT SEPTEMBER 30, 2023.
    • MAINTAINING STRONG LIQUIDITY WITH OVER $795 MILLION IN AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE FOR PLEDGE OF APPROXIMATELY $931 MILLION.
    • THE COMPANY REPURCHASED 430,521 SHARES FOR A COST OF $4.4 MILLION.
    • OUR 39TH BRANCH LOCATION IN ELIZABETH, NJ, OPENED IN DECEMBER 2023.
    • CASH DIVIDEND OF $0.13 PER SHARE DECLARED ON COMMON STOCK, PAYABLE FEBRUARY 21, 2024, TO STOCKHOLDERS OF RECORD AS OF FEBRUARY 7, 2024.

    FULL-YEAR 2023

    • DILUTED EARNINGS PER SHARE OF $0.86 COMPARED TO $1.32 FOR 2022.
    • NET INTEREST MARGIN DECREASED BY 62 BASIS POINTS TO 2.35% COMPARED TO 2.97% FOR 2022.
    • THE COMPANY REPURCHASED 3.1 MILLION SHARES TOTALING $36.9 MILLION. APPROXIMATELY $3.1 MILLION REMAINS TO BE REPURCHASED AS OF DECEMBER 31, 2023.

    WOODBRIDGE, N.J., Jan. 24, 2024 (GLOBE NEWSWIRE) -- NORTHFIELD BANCORP, INC. (The “Company”) (Nasdaq:NFBK), the holding company for Northfield Bank, reported net income of $8.2 million, or $0.19 per diluted share, for the quarter ended December 31, 2023, as compared to $8.2 million, or $0.19 per diluted share, for the quarter ended September 30, 2023, and $14.1 million, or $0.31 per diluted share, for the quarter ended December 31, 2022. For the year ended December 31, 2023, net income totaled $37.7 million, or $0.86 per diluted share, compared to $61.1 million, or $1.32 per diluted share, for the year ended December 31, 2022. The decrease in net income for both the quarter and year ended December 31, 2023, compared to the comparable prior year periods, was primarily the result of a decrease in net interest income, primarily attributable to a decrease in lower-cost deposits as well as higher funding costs.

    Commenting on the quarter and year, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “The Northfield team remained focused on building long-term stockholder value in a challenging operating environment. Relationship banking, fueled by growth in core deposits, commercial lending, and strong asset quality, coupled with disciplined expense management continues to deliver solid financial results.” Mr. Klein also noted, “Northfield’s financial results continue to fund the efficient repurchase of common stock and prudently build upon our strong capital and liquidity, positioning us to take advantage of future opportunities to deploy capital.”

    Mr. Klein further noted, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable February 21, 2024, to stockholders of record on February 7, 2024.”

    Results of Operations

    Comparison of Operating Results for the Years Ended December 31, 2023 and 2022

    Net income was $37.7 million and $61.1 million for the years ended December 31, 2023 and December 31, 2022, respectively. Significant variances from the prior year are as follows: a $33.6 million decrease in net interest income, a $3.1 million decrease in the provision for credit losses on loans, a $3.9 million increase in non-interest income, a $6.5 million increase in non-interest expense, and a $9.6 million decrease in income tax expense.

    Net interest income for the year ended December 31, 2023, decreased $33.6 million, or 21.2%, to $124.7 million, from $158.3 million for the year ended December 31, 2022. The decrease in net interest income was primarily attributable to an increase in the cost of interest-bearing liabilities due to the increase in market interest rates (as further discussed below) including a $62.7 million increase in interest expense on deposits, borrowings and subordinated debt which was partially offset by a $29.1 million increase in interest income. The increase in interest expense on deposits, borrowings and subordinated debt was largely driven by the impact of rising market interest rates and a $120.2 million, or 3.1%, increase in the average balance of interest-bearing liabilities, including increases of $481.5 million and $27.7 million, in the average balance of borrowed funds and subordinated debt, respectively, partially offset by a $389.1 million decrease in the average balance of interest-bearing deposits. The increase in interest income was primarily due to a 56 basis point increase in yields on interest-earning assets due to the rising rate environment and a greater percentage of assets consisting of higher-yielding loans, partially offset by a $26.3 million, or 0.5%, decrease in the average balance of interest-earning assets. The decrease in the average balance of interest-earning assets was due to decreases in the average balance of mortgage-backed securities of $181.5 million and the average balance of other securities of $46.7 million, partially offset by increases in the average balance of loans outstanding of $171.2 million, the average balance of Federal Home Loan Bank of New York (“FHLBNY”) stock of $18.1 million, and the average balance of interest-earning deposits in financial institutions of $12.5 million.

    Net interest margin decreased by 62 basis points to 2.35% for the year ended December 31, 2023 from 2.97% for the year ended December 31, 2022. The decrease in net interest margin was primarily due to interest-bearing liabilities repricing faster than interest-earning assets. The cost of interest-bearing liabilities increased by 156 basis points to 2.11% for the year ended December 31, 2023, from 0.55% for the year ended December 31, 2022, driven primarily by a 133 basis point increase in the cost of borrowings from 2.25% to 3.58% and a 131 basis point increase in the cost of interest-bearing deposits from 0.30% to 1.61% for the year ended December 31, 2023, due to rising market interest rates and a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased 56 basis points to 3.93% for the year ended December 31, 2023, from 3.37% for the year ended December 31, 2022, primarily due to an increase in yields on loans from 3.95% to 4.28%, or 33 basis points. The Company accreted interest income related to PCD loans of $1.3 million for the year ended December 31, 2023, as compared to $1.5 million for the year ended December 31, 2022. Fees recognized from Paycheck Protection Program (“PPP”) loans totaled $31,000 for the year ended December 31, 2023, as compared to $1.3 million for the year ended December 31, 2022. Net interest income for the year ended December 31, 2023, included loan prepayment income of $1.6 million as compared to $4.5 million for the year ended December 31, 2022.

    The provision for credit losses on loans decreased by $3.1 million to a provision of $1.4 million for the year ended December 31, 2023, compared to $4.5 million for the year ended December 31, 2022, primarily due to slower loan growth, a decrease in reserves related to non-economic qualitative loss factors in the multifamily and commercial real estate portfolios, and a decrease in reserves related to the PCD portfolio, attributable to improved cash flows and a decrease in PCD loan balances. In addition, there was an improvement in the macroeconomic outlook. The decreases were partially offset by higher net charge-offs and higher reserves for downgraded commercial and industrial loans. Net charge-offs were $6.4 million for the year ended December 31, 2023, as compared to net charge-offs of $838,000 for the year ended December 31, 2022, due to $6.2 million in charge-offs on small business unsecured commercial and industrial loans. Management continues to monitor the small business unsecured commercial and industrial loan portfolio, which totaled $37.4 million at December 31, 2023.

    Non-interest income increased $3.9 million, or 49.0%, to $11.9 million for the year ended December 31, 2023, from $8.0 million for the year ended December 31, 2022, due primarily to a $3.9 million increase in mark to market gains on trading securities, net. For the year ended December 31, 2023, gains on trading securities were $1.7 million, as compared to losses of $2.2 million for the year ended December 31, 2022. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the Company's deferred compensation plan (the “Plan”). The participants of this Plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have 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 increased $6.5 million, or 8.4%, to $83.5 million for the year ended December 31, 2023, compared to $76.9 million for the year ended December 31, 2022. The increase was primarily due to a $4.5 million increase in employee compensation and benefits, primarily attributable to a $3.9 million increase in the mark to market of the Company's deferred compensation plan expense, which as discussed above has no effect on net income, coupled with an increase in equity award expense related to awards issued in the first quarter of 2023, annual merit increases, and severance expense of $440,000, partially offset by a decrease in the accrual for incentive compensation. During the second quarter of 2023, due to economic conditions, the Company implemented a workforce reduction plan, which included modest layoffs and the elimination of, and/or not filling, certain open positions. The annual estimated cost savings of this plan is $1.4 million, pre-tax. Data processing expense increased by $723,000, due to continued investments in technology, increased transaction costs related to an increase in the number of customer accounts and related volume of transactions, and higher pricing effective January 2023. FDIC insurance expense increased by $924,000 due to higher assessment rates. There was a $506,000 decrease in the credit loss benefit for off-balance sheet credit exposures due to a benefit of $555,000 recorded during the year ended December 31, 2023, compared to a benefit of $1.1 million for the prior year, attributed to a larger decrease in the pipeline of loans committed and awaiting closing in the prior year as compared to the current year. Partially offsetting the increases was a $440,000 decrease in professional fees attributable to higher recruitment, consulting, and outsourcing fees in the prior year.

    The Company recorded income tax expense of $14.1 million for the year ended December 31, 2023, compared to $23.7 million for the year ended December 31, 2022, with the decrease due to lower taxable income. The effective tax rate for the year ended December 31, 2023, was 27.2%, compared to 28.0% for the year ended December 31, 2022.

    Comparison of Operating Results for the Three Months Ended December 31, 2023 and 2022

    Net income was $8.2 million and $14.1 million for the quarters ended December 31, 2023, and December 31, 2022, respectively. Significant variances from the comparable prior year quarter are as follows: a $10.4 million decrease in net interest income, a $956,000 decrease in the provision for credit losses on loans, a $408,000 increase in non-interest income, a $676,000 decrease in non-interest expense, and a $2.5 million decrease in income tax expense. 

    Net interest income for the quarter ended December 31, 2023, decreased $10.4 million, or 26.5%, to $28.9 million, from $39.3 million for the quarter ended December 31, 2022. The decrease in net interest income was attributable to a $16.1 million increase in interest expense on deposits and borrowings, partially offset by a $5.7 million increase in interest income. The increase in interest expense on deposits and borrowings was largely driven by an increase in the cost of funds (as discussed further below) due to the rising rate environment and, to a lesser extent, a $70.3 million, or 1.8%, increase in the average balance of interest-bearing liabilities, including an increase of $420.9 million in the average balance of borrowed funds, partially offset by a $350.6 million decrease in the average balance of interest-bearing deposits. The increase in interest income was primarily due to a 52 basis point increase in the yield on interest-earning assets due to the rising rate environment, partially offset by a decrease in the average balance of interest earning assets of $128.8 million, or 2.4%. The decrease in the average balance of interest-earning assets was due to decreases in the average balance of mortgage-backed securities of $165.3 million, the average balance of other securities of $61.3 million, and the average balance of loans outstanding of $36.2 million, partially offset by increases in the average balance of FHLBNY stock of $14.9 million, and the average balance of interest-earning deposits in financial institutions of $119.1 million.

    Net interest margin decreased by 72 basis points to 2.17% for the quarter ended December 31, 2023 from 2.89% for the quarter ended December 31, 2022, primarily due to interest-bearing liabilities repricing faster than interest-earning assets. The cost of interest-bearing liabilities increased by 157 basis points to 2.52% for the quarter ended December 31, 2023, from 0.95% for the quarter ended December 31, 2022, driven primarily by a 102 basis point increase in the cost of borrowings from 2.56% to 3.58%, and a 151 basis point increase in the cost of interest-bearing deposits from 0.65% to 2.16%. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased by 52 basis points to 4.10% for the quarter ended December 31, 2023, from 3.58% for the quarter ended December 31, 2022, primarily due to higher yields on loans from 4.01% to 4.37%, or 36 basis points. Net interest income for the quarter ended December 31, 2023, included loan prepayment income of $253,000, as compared to $287,000 for the quarter ended December 31, 2022. The Company accreted interest income related to PCD loans of $330,000 for the quarter ended December 31, 2023, as compared to $355,000 for quarter ended December 31, 2022.

    The provision for credit losses on loans decreased by $956,000 to a provision of $271,000 for the quarter ended December 31, 2023, from a provision of $1.2 million for the quarter ended December 31, 2022. The decrease was primarily due to slower loan growth, a decrease in reserves related to non-economic qualitative loss factors in the multifamily and commercial real estate portfolios, and a decrease in reserves related to the PCD portfolio, attributable to improved cash flows and a decrease in PCD loan balances. Additionally, there was an improvement in the macroeconomic outlook. The decreases were partially offset by higher net charge-offs, and an increase in reserves for downgraded commercial and industrial loans. Net charge-offs were $1.2 million for the quarter ended December 31, 2023, compared to net charge-offs of $493,000 for the quarter ended December 31, 2022, primarily due to $992,000 in charge-offs on small business unsecured commercial and industrial loans.

    Non-interest income increased by $408,000, or 12.7%, to $3.6 million for the quarter ended December 31, 2023, from $3.2 million for the quarter ended December 31, 2022, primarily due to a $413,000 increase in gains on trading securities. For the quarter ended December 31, 2023, gains on trading securities, net, were $998,000, compared to gains of $585,000 in the comparable prior year quarter. As discussed above, gains and losses on trading securities have no effect on net income since participants of the Plan, which the trading securities portfolio is utilized to fund, benefit from, and bear the full risk of, changes in the trading securities market values.

    Non-interest expense decreased by $676,000, or 3.1%, to $21.0 million for the quarter ended December 31, 2023, from $21.7 million for the quarter ended December 31, 2022. The decrease was primarily due to a $565,000 decrease in advertising expense due to the timing of certain campaigns and a $364,000 decrease in the credit loss (benefit)/expense for off-balance sheet exposures, which was due to a benefit of $165,000 recorded during the quarter ended December 31, 2023, compared to an expense of $199,000 recorded in the prior year quarter. The benefit in the current year quarter was attributable to a decrease in the pipeline of loans committed and awaiting closing. Partially offsetting these decreases was an increase of $229,000 in FDIC insurance expense due to a higher assessment rate in the current quarter.

    The Company recorded income tax expense of $3.1 million for the quarter ended December 31, 2023, compared to $5.5 million for the quarter ended December 31, 2022, with the decrease due to lower taxable income. The effective tax rate for the quarter ended December 31, 2023, was 27.2% compared to 28.1% for quarter ended December 31, 2022.

    Comparison of Operating Results for the Three Months Ended December 31, 2023 and September 30, 2023

    Net income remained level at $8.2 million for the quarters ended December 31, 2023, and September 30, 2023. Significant variances from the prior quarter are as follows: a $774,000 decrease in net interest income, a $1.5 million increase in non-interest income, a $413,000 increase in non-interest expense, and a $195,000 increase in income tax expense.

    Net interest income for the quarter ended December 31, 2023, decreased by $774,000, or 2.6%, to $28.9 million, from $29.7 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $2.5 million increase in interest expense on deposits and borrowings, partially offset by a $1.7 million increase in interest income. The increase in interest expense on deposits and borrowings was primarily due to an increase in the cost of funds (as discussed further below) and a $63.1 million, or 1.6%, increase in the average balance of interest-bearing liabilities driven by a $130.2 million, or 4.4%, increase in the average balance of interest-bearing deposits, partially offset by a decrease of $67.1 million, or 6.7%, in the average balance of borrowed funds. The increase in interest income was primarily due to a 10 basis point increase in the yield on interest-earning assets and a $38.2 million, or 0.7%, increase in the average balance of interest-earning assets. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of interest-bearing deposits in financial institutions of $100.0 million and in the average balance of other securities of $21.8 million. The increases were partially offset by decreases in the average balance of loans outstanding of $41.4 million, the average balance of mortgage-backed securities of $40.4 million, and the average balance of FHLBNY stock of $1.8 million.

    Net interest margin decreased by eight basis points to 2.17% from 2.25% for the quarter ended September 30, 2023, primarily due to the increase in the cost of interest-bearing liabilities outpacing the increase in yields on interest-earning assets. The cost of interest-bearing liabilities increased by 21 basis point to 2.52% for the quarter ended December 31, 2023, from 2.31% for the quarter ended September 30, 2023, driven primarily by higher cost of deposits, which was partially offset by higher yields on interest-earning assets, which increased by 10 basis points to 4.10% for the quarter ended December 31, 2023, from 4.00% for the quarter ended September 30, 2023. Net interest income for the quarter ended December 31, 2023, included loan prepayment income of $253,000 as compared to $183,000 for the quarter ended September 30, 2023. The Company accreted interest income related to PCD loans of $330,000 for the quarter ended December 31, 2023, as compared to $325,000 for the quarter ended September 30, 2023.

    The provision for credit losses on loans increased by $83,000 to a provision of $271,000 for the quarter ended December 31, 2023, from a provision of $188,000 for the quarter ended September 30, 2023. The increase in the provision was primarily attributable to an increase in reserves for downgraded commercial and industrial and home equity loans, partially offset by an improvement in the macroeconomic outlook and lower net charge-offs. Net charge-offs were $1.2 million for the quarter ended December 31, 2023, as compared to net charge-offs of $2.9 million for the quarter ended September 30, 2023.

    Non-interest income increased by $1.5 million, or 71.0%, to $3.6 million for the quarter ended December 31, 2023, from $2.1 million for the quarter ended September 30, 2023. The increase was primarily due to a $1.3 million increase in gains on trading securities, net. For the quarter ended December 31, 2023, gains on trading securities, net, were $998,000 compared to losses of $295,000 for the quarter ended September 30, 2023.

    Non-interest expense increased by $413,000, or 2.0%, to $21.0 million for the quarter ended December 31, 2023, from $20.6 million for the quarter ended September 30, 2023. The increase was primarily due to a $1.3 million increase in compensation and employee benefits, which included a $1.3 million increase related to the mark to market of the Company's deferred compensation plan expense, which as previously discussed has no effect on net income. Partially offsetting the increase was a decrease of $325,000 in credit loss (benefit)/expense for off-balance sheet exposures due to a benefit of $165,000 recorded during the quarter ended December 31, 2023, compared to a provision of $160,000 for the quarter ended September 30, 2023, attributed to a decrease in the pipeline of loans committed and awaiting closing in the prior quarter as compared to the current quarter, a decrease of $189,000 in occupancy expense, and a decrease of $164,000 in data processing.

    The Company recorded income tax expense of $3.1 million for the quarter ended December 31, 2023, compared to $2.9 million for the quarter ended September 30, 2023. The effective tax rate for the quarter ended December 31, 2023, was 27.2% compared to 26.0% for the quarter ended September 30, 2023.

    Financial Condition

    Total assets decreased by $2.9 million, or 0.1%, to $5.60 billion at December 31, 2023 compared to December 31, 2022. The decrease was primarily due to a decrease in available-for-sale debt securities of $156.7 million, or 16.5%, and a decrease in loans receivable of $40.0 million, or 0.9%, partially offset by increases in cash and cash equivalents of $183.7 million, or 401.1%, and FHLBNY stock of $9.3 million, or 30.6%.

    Cash and cash equivalents increased by $183.7 million, or 401.1%, to $229.5 million at December 31, 2023, from $45.8 million at December 31, 2022, primarily due to an increase in Federal Reserve Bank of New York (“FRB”) balances driven by excess cash from borrowings and proceeds from the maturity and calls of available-for-sale securities. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities. During 2023, management believed it was prudent to increase balance sheet liquidity given general market volatility and uncertainty.

    Loans held for investment, net, decreased by $40.0 million to $4.20 billion at December 31, 2023, from $4.24 billion at December 31, 2022, primarily due to a decrease in multifamily loans, partially offset by an increase in commercial real estate loans. The Company continues to focus on the credit needs of its customers, and to a lesser extent, the development of new business notwithstanding the uncertain economic environment. Multifamily loans decreased $73.6 million, or 2.6%, to $2.75 billion at December 31, 2023 from $2.82 billion at December 31, 2022, one-to-four family residential loans decreased $13.1 million, or 7.5%, to $160.8 million at December 31, 2023 from $173.9 million at December 31, 2022, and commercial and industrial loans decreased $568,000, or 0.4%, to $155.3 million at December 31, 2023 from $154.7 million at December 31, 2022. Partially offsetting these decreases were increases in commercial real estate loans of $30.3 million, or 3.4%, to $929.6 million at December 31, 2023 from $899.2 million at December 31, 2022, home equity loans of $11.0 million, or 7.2%, to $163.5 million at December 31, 2023 from $152.6 million at December 31, 2022, and construction and land loans of $6.0 million, or 24.2%, to $31.0 million at December 31, 2023 from $24.9 million at December 31, 2022.

    As of December 31, 2023, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 456%. Management believes that Northfield Bank (the “Bank”) has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company's ability to pay dividends, and overall profitability.

    At December 31, 2023, office-related loans represented $208.6 million, or approximately 5% 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 46% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are as follows: 54.2% in New York and 45.8% in New Jersey. At December 31, 2023, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $30.0 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.

    PCD loans totaled $9.9 million and $11.5 million at December 31, 2023 and December 31, 2022, respectively, with the decrease being primarily due to one loan with a balance of approximately $950,000 which was sold during the quarter ended December 31, 2023. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $330,000 and $1.3 million attributable to PCD loans for the quarter and year ended December 31, 2023, respectively, as compared to $355,000 and $1.5 million for the quarter and year ended December 31, 2022, respectively. PCD loans had an allowance for credit losses of approximately $3.1 million at December 31, 2023.

    Loan balances are summarized as follows (dollars in thousands):

     December 31, 2023 September 30, 2023 December 31, 2022
    Real estate loans:     
    Multifamily$2,750,996  $2,782,141  $2,824,579 
    Commercial mortgage 929,595   932,987   899,249 
    One-to-four family residential mortgage 160,824   164,525   173,946 
    Home equity and lines of credit 163,520   160,798   152,555 
    Construction and land 30,967   32,290   24,932 
    Total real estate loans 4,035,902   4,072,741   4,075,261 
    Commercial and industrial loans 154,984   144,463   149,557 
    PPP loans 284   325   5,143 
    Other loans 2,585   2,074   2,230 
    Total commercial and industrial, PPP, and other loans 157,853   146,862   156,930 
    Loans held-for-investment, net (excluding PCD) 4,193,755   4,219,603   4,232,191 
    PCD loans 9,899   10,371   11,502 
    Total loans held-for-investment, net$4,203,654  $4,229,974  $4,243,693 
          

    The Company’s available-for-sale debt securities portfolio decreased by $156.7 million, or 16.5%, to $795.5 million at December 31, 2023, from $952.2 million at December 31, 2022. The decrease was primarily attributable to paydowns, maturities, and calls. At December 31, 2023, $550.6 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $73.9 million in U.S. Government agency securities, $44.4 million in U.S. Treasuries, $125.8 million in corporate bonds, substantially all of which were considered investment grade, and $763,000 in municipal bonds at December 31, 2023. Gross unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $32.5 million and $279,000, respectively, at December 31, 2023, and $48.6 million and $332,000, respectively, at December 31, 2022.

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

    Total liabilities remained at $4.90 billion at both December 31, 2023 and December 31, 2022, as the decrease in total deposits of $271.8 million was largely offset by an increase in FHLB advances and other borrowings of $275.6 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

    Deposits decreased $271.8 million, or 6.55%, to $3.88 billion at December 31, 2023, as compared to $4.15 billion at December 31, 2022. Brokered deposits decreased by $290.0 million, or 74.4%. Deposits, excluding brokered deposits, increased $18.3 million, or 0.5%. The increase in deposits, excluding brokered deposits, was attributable to increases of $223.7 million in time deposits and $8.6 million in savings accounts, partially offset by decreases of $58.1 million in transaction accounts and $155.9 million in money market accounts. Estimated uninsured deposits (excluding fully collateralized uninsured governmental deposits of $791.7 million) were approximately $869.9 million, or 22.4%, of total deposits as of December 31, 2023, as compared to estimated uninsured deposits (excluding fully collateralized uninsured governmental deposits of $661.1 million) of approximately $899.5 million, or 24.5%, of total deposits as of September 30, 2023.

    Deposit account balances are summarized as follows (dollars in thousands):

     December 31, 2023 September 30, 2023 December 31, 2022
    Transaction:     
    Non-interest bearing checking$694,903  $727,605  $852,660 
    Negotiable orders of withdrawal and interest-bearing checking 1,231,943   1,150,647   1,132,290 
    Total transaction 1,926,846   1,878,252   1,984,950 
    Savings and money market:     
    Savings 925,744   956,009   917,180 
    Money market 302,122   303,510   508,067 
    Brokered money market 50,000   —   — 
    Total savings 1,277,866   1,259,519   1,425,247 
    Certificates of deposit:     
    Brokered deposits 50,000   —   390,035 
    $250,000 and under 525,454   461,220   293,200 
    Over $250,000 98,269   69,522   56,787 
    Total certificates of deposit 673,723   530,742   740,022 
    Total deposits$3,878,435  $3,668,513  $4,150,219 


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

     December 31, 2023 September 30, 2023 December 31, 2022
          
    Business customers$893,296  $988,612  $1,146,803 
    Municipal customers$768,556  $638,881  $604,717 


    Borrowed funds increased to $920.5 million at December 31, 2023, from $644.9 million at December 31, 2022. The increase in borrowings for the period was primarily due to an increase in FHLB and FRB borrowings of $275.4 million, including $94.5 million of borrowings under the Federal Reserve Bank Term Funding Program, which included favorable terms and conditions as compared to FHLB advances. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies. During the year ended December 31, 2023, the Company increased borrowings to pay off higher-rate brokered certificates of deposit.

    The following is a table of term borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at December 31, 2023 (dollars in thousands):

    Year Amount (1) Weighted Average Rate
    2024 $195,265 3.96%
    2025 182,500 2.59%
    2026 148,000 4.36%
    2027 173,000 3.19%
    2028 154,288 3.96%
      $853,053 3.58%
         

    (1) Borrowings maturing in 2024 include $94.5 million of FRB borrowings that can be repaid without any penalty.

    Total stockholders’ equity decreased by $1.9 million to $699.4 million at December 31, 2023, from $701.4 million at December 31, 2022. The decrease was attributable to $36.9 million in stock repurchases and $22.8 million in dividend payments, partially offset by net income of $37.7 million for the year ended December 31, 2023, a $15.9 million reduction in accumulated other comprehensive loss due to an increase in the fair value of our debt securities available-for-sale portfolio, and a $4.2 million increase in equity award activity. On November 7, 2023, the Board of Directors of the Company approved a new $7.5 million stock repurchase program. During the year ended December 31, 2023, the Company repurchased approximately 3.1 million of its common stock outstanding at an average price of $11.99 for a total of $36.9 million pursuant to the approved stock repurchase plans. As of December 31, 2023, the Company had approximately $3.1 million in remaining capacity under its current repurchase program.

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

    The Company had the following primary sources of liquidity at December 31, 2023 (dollars in thousands): 

    Cash and cash equivalents(1)$215,617
    Corporate bonds(2)$110,914
    Multifamily loans(2)$930,990
    Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2)$382,787
      

    (1) Excludes $13.9 million of cash at Northfield Bank.
    (2) Represents estimated remaining borrowing potential.

    The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At December 31, 2023, the Company and the Bank's estimated CBLR ratios were 12.58% and 12.80%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9.0%.

    Asset Quality

    The following table details total non-accrual loans (excluding PCD), non-performing loans, non-performing assets, troubled debt restructurings on which interest is accruing, and accruing loans 30 to 89 days delinquent at December 31, 2023, September 30, 2023, and December 31, 2022 (dollars in thousands):

     December 31, 2023 September 30, 2023 December 31, 2022
    Non-accrual loans:     
    Held-for-investment     
    Real estate loans:     
    Multifamily$2,709  $3,073  $3,285 
    Commercial 6,491   5,435   5,184 
    One-to-four family residential 104   106   118 
    Home equity and lines of credit 499   98   262 
    Commercial and industrial 305   848   964 
    Other 7   10   — 
    Total non-accrual loans 10,115   9,570   9,813 
    Loans delinquent 90 days or more and still accruing:     
    Held-for-investment     
    Real estate loans:     
    Multifamily$201  $209  $233 
    Commercial —   114   8 
    One-to-four family residential 406   139   155 
    Home equity and lines of credit 711   115   — 
    Commercial and industrial —   15   — 
    PPP loans —   —   24 
    Other —   —   5 
    Total loans held-for-investment delinquent 90 days or more and still accruing 1,318   592   425 
    Total non-performing assets$11,433  $10,162  $10,238 
    Non-performing loans to total loans 0.27%  0.24%  0.24%
    Non-performing assets to total assets 0.20%  0.19%  0.18%
    Loans subject to restructuring agreements and still accruing(1)$—  $—  $3,751 
    Accruing loans 30-89 days delinquent$8,683  $8,105  $3,644 
          

    (1) With the adoption of Accounting Standards Update (“ASU”) 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), effective January 1, 2023, TDR accounting has been eliminated.

    Accruing Loans 30 to 89 Days Delinquent

    Loans 30 to 89 days delinquent and on accrual status totaled $8.7 million, $8.1 million, and $3.6 million at December 31, 2023, September 30, 2023, and December 31, 2022, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at December 31, 2023, September 30, 2023, and December 31, 2022 (dollars in thousands):

     December 31, 2023 September 30, 2023 December 31, 2022
    Held-for-investment     
    Real estate loans:     
    Multifamily$740  $178  $189 
    Commercial 1,010   1,892   900 
    One-to-four family residential 3,339   2,708   672 
    Home equity and lines of credit 817   1,206   830 
    Commercial and industrial loans 2,767   2,117   1,048 
    Other loans 10   4   5 
    Total delinquent accruing loans held-for-investment$8,683  $8,105  $3,644 


    The increase in the commercial and industrial loan delinquencies from December 31, 2022 was primarily due to an increase in delinquencies in unsecured small business loans. Unsecured small business loans totaled $37.4 million, $39.1 million, and $43.3 million at December 31, 2023, September 30, 2023, and December 31, 2022, respectively. Management continues to monitor the small business unsecured commercial and industrial loan portfolio.

    PCD Loans (Held-for-Investment)

    The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.9 million at December 31, 2023 and $11.5 million at December 31, 2022) as accruing, even though they may be contractually past due. At December 31, 2023, 2.9% of PCD loans were past due 30 to 89 days, and 27.1% were past due 90 days or more, as compared to 6.8% and 23.0%, respectively, at December 31, 2022.

    About Northfield Bank

    Northfield Bank, founded in 1887, operates 39 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

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

    (Tables follow)



    NORTHFIELD BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
    (Dollars in thousands, except per share amounts) (unaudited)
     
           At or For the
     At or For the Three Months Ended Year Ended
     December 31, September 30, December 31,
      2023   2022   2023   2023   2022 
    Selected Financial Ratios:         
    Performance Ratios(1)         
    Return on assets (ratio of net income to average total assets) 0.59%  0.99%  0.59%  0.68%  1.09%
    Return on equity (ratio of net income to average equity) 4.75   8.07   4.74   5.45   8.57 
    Average equity to average total assets 12.42   12.31   12.49   12.44   12.75 
    Interest rate spread 1.58   2.63   1.69   1.82   2.82 
    Net interest margin 2.17   2.89   2.25   2.35   2.97 
    Efficiency ratio(2) 64.46   50.88   64.65   61.11   46.27 
    Non-interest expense to average total assets 1.51   1.52   1.49   1.50   1.38 
    Non-interest expense to average total interest-earning assets 1.58   1.59   1.56   1.57   1.44 
    Average interest-earning assets to average interest-bearing liabilities 131.09   136.68   132.21   133.01   137.82 
    Asset Quality Ratios:         
    Non-performing assets to total assets 0.20   0.18   0.19   0.20   0.18 
    Non-performing loans(3)to total loans(4) 0.27   0.24   0.24   0.27   0.24 
    Allowance for credit losses to non-performing loans 328.30   416.26   378.67   328.30   416.26 
    Allowance for credit losses to total loans held-for-investment, net(5) 0.89   1.00   0.91   0.89   1.00 
                        

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



    NORTHFIELD BANCORP, INC.
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
     December 31, 2023 September 30, 2023 December 31, 2022
    ASSETS:     
    Cash and due from banks$13,889  $13,258  $14,530 
    Interest-bearing deposits in other financial institutions 215,617   67,298   31,269 
    Total cash and cash equivalents 229,506   80,556   45,799 
    Trading securities 12,549   11,504   10,751 
    Debt securities available-for-sale, at estimated fair value 795,464   743,699   952,173 
    Debt securities held-to-maturity, at amortized cost 9,866   10,114   10,760 
    Equity securities 10,629   10,628   10,443 
    Loans held-for-sale —   950   — 
    Loans held-for-investment, net 4,203,654   4,229,974   4,243,693 
    Allowance for credit losses (37,535)  (38,480)  (42,617)
    Net loans held-for-investment 4,166,119   4,191,494   4,201,076 
    Accrued interest receivable 18,491   17,355   17,426 
    Bank-owned life insurance 171,543   170,591   167,912 
    Federal Home Loan Bank of New York stock, at cost 39,667   41,165   30,382 
    Operating lease right-of-use assets 30,202   31,407   34,288 
    Premises and equipment, net 24,771   24,154   24,844 
    Goodwill 41,012   41,012   41,012 
    Other assets 48,577   62,455   54,427 
    Total assets$5,598,396  $5,437,084  $5,601,293 
          
    LIABILITIES AND STOCKHOLDERS’ EQUITY:     
    LIABILITIES:     
    Deposits$3,878,435  $3,668,513  $4,150,219 
    Securities sold under agreements to repurchase 25,000   25,000   25,000 
    Federal Home Loan Bank advances and other borrowings 834,272   893,973   558,859 
    Subordinated debentures, net of issuance costs 61,219   61,163   60,996 
    Lease liabilities 35,205   36,535   39,790 
    Advance payments by borrowers for taxes and insurance 25,102   25,968   25,995 
    Accrued expenses and other liabilities 39,718   41,857   39,044 
    Total liabilities 4,898,951   4,753,009   4,899,903 
          
    STOCKHOLDERS’ EQUITY:     
    Total stockholders’ equity 699,445   684,075   701,390 
    Total liabilities and stockholders’ equity$5,598,396  $5,437,084  $5,601,293 
          
    Total shares outstanding 44,524,929   44,956,118   47,442,488 
    Tangible book value per share(1)$14.78  $14.30  $13.91 
                

    (1) Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $154, $185, and $266 at December 31, 2023, September 30, 2023, and December 31, 2022, respectively, and are included in other assets.



    NORTHFIELD BANCORP, INC.
    CONSOLIDATED STATEMENT OF INCOME
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
     Three Months Ended Years Ended
     December 31, September 30, December 31,
      2023   2022   2023   2023   2022 
    Interest income:         
    Loans$46,418  $42,881  $46,213  $181,638  $160,911 
    Mortgage-backed securities 3,538   3,659   3,664   14,708   12,461 
    Other securities 1,494   1,440   1,095   5,087   4,325 
    Federal Home Loan Bank of New York dividends 988   386   933   3,113   1,174 
    Deposits in other financial institutions 2,024   394   831   4,249   817 
    Total interest income 54,462   48,760   52,736   208,795   179,688 
    Interest expense:         
    Deposits 16,835   5,675   13,614   48,753   10,289 
    Borrowings 7,873   2,908   8,593   32,055   9,296 
    Subordinated debt 836   836   837   3,320   1,797 
    Total interest expense 25,544   9,419   23,044   84,128   21,382 
    Net interest income 28,918   39,341   29,692   124,667   158,306 
    Provision for credit losses 271   1,227   188   1,353   4,482 
    Net interest income after provision for credit losses 28,647   38,114   29,504   123,314   153,824 
    Non-interest income:         
    Fees and service charges for customer services 1,473   1,499   1,317   5,479   5,705 
    Income on bank-owned life insurance 952   866   920   3,631   3,414 
    Gains/(losses) on available-for-sale debt securities, net —   15   —   (17)  279 
    Gains/(losses) on trading securities, net 998   585   (295)  1,721   (2,206)
    Gain on sale of loans —   180   99   134   453 
    Other 204   74   80   948   338 
    Total non-interest income 3,627   3,219   2,121   11,896   7,983 
    Non-interest expense:         
    Compensation and employee benefits 12,186   12,252   10,920   46,496   41,961 
    Occupancy 3,227   3,200   3,416   13,259   13,241 
    Furniture and equipment 475   440   479   1,868   1,730 
    Data processing 1,830   2,093   1,994   8,138   7,415 
    Professional fees 784   806   883   3,406   3,846 
    Advertising 337   902   414   2,171   2,159 
    Federal Deposit Insurance Corporation insurance 568   339   591   2,331   1,407 
    Credit loss (benefit)/expense for off-balance sheet exposures (165)  199   160   (555)  (1,061)
    Other 1,738   1,425   1,710   6,336   6,250 
    Total non-interest expense 20,980   21,656   20,567   83,450   76,948 
    Income before income tax expense 11,294   19,677   11,058   51,760   84,859 
    Income tax expense 3,072   5,538   2,877   14,091   23,740 
    Net income$8,222  $14,139  $8,181  $37,669  $61,119 
    Net income per common share:         
    Basic$0.19  $0.31  $0.19  $0.86  $1.32 
    Diluted$0.19  $0.31  $0.19  $0.86  $1.32 
    Basic average shares outstanding 42,704,541   45,486,423   42,866,246   43,560,844   46,234,122 
    Diluted average shares outstanding 42,780,195   45,789,419   42,918,174   43,638,616   46,438,119 



    NORTHFIELD BANCORP, INC.
    ANALYSIS OF NET INTEREST INCOME
    (Dollars in thousands) (unaudited)
     
     For the Three Months Ended
     December 31, 2023 September 30, 2023 December 31, 2022
     Average
    Outstanding
    Balance    		 Interest Average Yield/
    Rate(1)    		 Average
    Outstanding
    Balance    		 Interest Average Yield/ Rate(1) Average
    Outstanding
    Balance    		 Interest Average Yield/
    Rate(1)
    Interest-earning assets:                 
    Loans(2)$4,211,344 $46,418  4.37% $4,252,752 $46,213  4.31% $4,247,576 $42,881  4.01%
    Mortgage-backed securities(3) 620,384  3,538  2.26   660,753  3,664  2.20   785,676  3,659  1.85 
    Other securities(3) 231,133  1,494  2.56   209,341  1,095  2.08   292,413  1,440  1.95 
    Federal Home Loan Bank of New York stock 39,470  988  9.93   41,278  933  8.97   24,609  386  6.22 
    Interest-earning deposits in financial institutions 173,026  2,024  4.64   73,005  831  4.52   53,920  394  2.90 
    Total interest-earning assets 5,275,357  54,462  4.10   5,237,129  52,736  4.00   5,404,194  48,760  3.58 
    Non-interest-earning assets 255,155      248,315      237,074    
    Total assets$5,530,512     $5,485,444     $5,641,268    
                      
    Interest-bearing liabilities:                 
    Savings, NOW, and money market accounts$2,522,964 $11,214  1.76% $2,408,218 $8,865  1.46% $2,708,942 $1,739  0.25%
    Certificates of deposit 567,356  5,621  3.93   551,904  4,749  3.41   732,006  3,936  2.13 
    Total interest-bearing deposits 3,090,320  16,835  2.16   2,960,122  13,614  1.82   3,440,948  5,675  0.65 
    Borrowed funds 872,756  7,873  3.58   939,922  8,593  3.63   451,049  2,908  2.56 
    Subordinated debt 61,183  836  5.42   61,127  837  5.43   61,947  836  5.35 
    Total interest-bearing liabilities 4,024,259  25,544  2.52   3,961,171  23,044  2.31   3,953,944  9,419  0.95 
    Non-interest bearing deposits 717,372      739,266      890,633    
    Accrued expenses and other liabilities 101,964      100,103      102,012    
    Total liabilities 4,843,595      4,800,540      4,946,589    
    Stockholders' equity 686,917      684,904      694,679    
    Total liabilities and stockholders' equity$5,530,512     $5,485,444     $5,641,268    
                      
    Net interest income  $28,918     $29,692     $39,341  
    Net interest rate spread(4)     1.58%      1.69%      2.63%
    Net interest-earning assets(5)$1,251,098     $1,275,958     $1,450,250    
    Net interest margin(6)     2.17%      2.25%      2.89%
    Average interest-earning assets to interest-bearing liabilities     131.09%      132.21%      136.68%

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


     For the Years Ended
     December 31, 2023 December 31, 2022
     Average
    Outstanding
    Balance    		 Interest Average Yield/
    Rate    		 Average
    Outstanding
    Balance    		 Interest Average Yield/
    Rate(1)
    Interest-earning assets:           
    Loans(1)$4,248,355 $181,638  4.28% $4,077,175 $160,911  3.95%
    Mortgage-backed securities(2) 682,416  14,708  2.16   863,897  12,461  1.44 
    Other securities(2) 238,722  5,087  2.13   285,385  4,325  1.52 
    Federal Home Loan Bank of New York stock 40,684  3,113  7.65   22,541  1,174  5.21 
    Interest-earning deposits in financial institutions 97,975  4,249  4.34   85,485  817  0.96 
    Total interest-earning assets 5,308,152  208,795  3.93   5,334,483  179,688  3.37 
    Non-interest-earning assets 247,050      259,891    
    Total assets$5,555,202     $5,594,374    
                
    Interest-bearing liabilities:           
    Savings, NOW, and money market accounts$2,463,455 $30,408  1.23% $2,898,048 $3,610  0.12%
    Certificates of deposit 571,041  18,345  3.21   525,557  6,679  1.27 
    Total interest-bearing deposits 3,034,496  48,753  1.61   3,423,605  10,289  0.30 
    Borrowed funds 895,229  32,055  3.58   413,697  9,296  2.25 
    Subordinated debt 61,169  3,320  5.43   33,436  1,797  5.37 
    Total interest-bearing liabilities$3,990,894  84,128  2.11  $3,870,738  21,382  0.55 
    Non-interest bearing deposits 770,939      907,603    
    Accrued expenses and other liabilities 102,563      102,807    
    Total liabilities 4,864,396      4,881,148    
    Stockholders' equity 690,806      713,226    
    Total liabilities and stockholders' equity$5,555,202     $5,594,374    
                
    Net interest income  $124,667     $158,306  
    Net interest rate spread(3)     1.82%      2.82%
    Net interest-earning assets(4)$1,317,258     $1,463,745    
    Net interest margin(5)     2.35%      2.97%
    Average interest-earning assets to interest-bearing liabilities     133.01%      137.82%
                    

    (1) Includes non-accruing loans.
    (2) Securities available-for-sale and other securities are reported at amortized cost.
    (3) 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.
    (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    (5) Net interest margin represents net interest income divided by average total interest-earning assets.

    Company Contact:
    William R. Jacobs
    Chief Financial Officer
    Tel: (732) 499-7200 ext. 2519

     


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