Northfield Bancorp, Inc. [NFBK] Filings

10-Q 1 nfbk-20230630.htm 10-Q nfbk-20230630

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 June 30, 2023

☐ 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 July 31, 2023, the registrant had 44,987,773 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	58
Item 4.	Controls and Procedures	60

PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	62
Item 6.	Exhibits	62
	SIGNATURES	63

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS

NORTHFIELD BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands, except share amounts)


	June 30, 2023		December 31, 2022
ASSETS:
Cash and due from banks	$	13,853	$	14,530
Interest-bearing deposits in other financial institutions	75,274		31,269
Total cash and cash equivalents	89,127		45,799
Trading securities	11,731		10,751
Debt securities available-for-sale, at estimated fair value (with no allowance for credit losses at June 30, 2023 and December 31, 2022)	802,257		952,173
Debt securities held-to-maturity, at amortized cost	10,316		10,760
(estimated fair value of $9,946 at June 30, 2023, and $10,389 at December 31, 2022, with no allowance for credit losses at June 30, 2023 and December 31, 2022)
Equity securities	10,653		10,443
Loans held-for-sale	977		—
Loans held-for-investment	4,274,042		4,243,693
Less: allowance for credit losses	(41,154)		(42,617)
Net loans held-for-investment	4,232,888		4,201,076
Accrued interest receivable	17,721		17,426
Bank-owned life insurance	169,671		167,912
Federal Home Loan Bank (“FHLB”) of New York stock, at cost	40,376		30,382
Operating lease right-of-use assets	32,010		34,288
Premises and equipment, net	24,573		24,844
Goodwill	41,012		41,012

Other assets	57,503		54,427
Total assets	$	5,540,815	$	5,601,293

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits	$	3,764,403	$	4,150,219
Securities sold under agreements to repurchase	25,000		25,000
FHLB advances and other borrowings	898,535		558,859
Subordinated debentures, net of issuance costs	61,108		60,996
Operating lease liabilities	37,274		39,790
Advance payments by borrowers for taxes and insurance	29,117		25,995
Accrued expenses and other liabilities	38,737		39,044
Total liabilities	4,854,174		4,899,903

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
June 30, 2023 and December 31, 2022, 45,243,673 and 47,442,488 outstanding at June 30, 2023 and December 31, 2022, respectively	648		648
Additional paid-in-capital	589,335		590,249
Unallocated common stock held by employee stock ownership plan	(15,192)		(15,650)
Retained earnings	427,921		418,353
Accumulated other comprehensive loss	(45,074)		(48,331)
Treasury stock at cost: 19,527,202 and 17,328,387 shares at June 30, 2023 and December 31, 2022, respectively	(270,997)		(243,879)
Total stockholders’ equity	686,641		701,390
Total liabilities and stockholders’ equity	$	5,540,815	$	5,601,293

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

NORTHFIELD BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited) (In thousands, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Interest income:
Loans	$	45,300	$	38,998	$	89,007	$	75,719
Mortgage-backed securities	3,714		3,043		7,506		5,518
Other securities	1,113		989		2,498		1,684
FHLB of New York dividends	727		260		1,192		505
Deposits in other financial institutions	816		166		1,394		224
Total interest income	51,670		43,456		101,597		83,650
Interest expense:
Deposits	10,483		1,334		18,304		2,493
Borrowings	9,198		1,918		15,589		4,084
Subordinated debt	828		119		1,647		119
Total interest expense	20,509		3,371		35,540		6,696
Net interest income	31,161		40,085		66,057		76,954
Provision for credit losses	30		149		894		552
Net interest income after provision for credit losses	31,131		39,936		65,163		76,402
Non-interest income:
Fees and service charges for customer services	1,309		1,375		2,689		2,706
Income on bank-owned life insurance	889		848		1,759		1,687
(Losses) gains on available-for-sale debt securities, net	(18)		—		(17)		264
Gains (losses) on trading securities, net	506		(1,563)		1,018		(2,365)
Gain on sale of loans	35		—		35		—
Other	95		105		664		186
Total non-interest income	2,816		765		6,148		2,478
Non-interest expense:
Compensation and employee benefits	12,353		9,418		23,390		18,925
Occupancy	3,244		3,286		6,616		6,694
Furniture and equipment	460		426		914		852
Data processing	2,071		1,762		4,314		3,475
Professional fees	768		1,229		1,739		2,137
Advertising	573		404		1,420		837
Federal Deposit Insurance Corporation insurance	568		355		1,172		712
Credit loss (benefit) expense for off-balance sheet exposures	(661)		349		(550)		628
Other	1,399		1,484		2,888		3,162
Total non-interest expense	20,775		18,713		41,903		37,422
Income before income tax expense	13,172		21,988		29,408		41,458
Income tax expense	3,613		6,114		8,142		11,457
Net income	$	9,559	$	15,874	$	21,266	$	30,001
Net income per common share:
Basic	$	0.22	$	0.34	$	0.48	$	0.64
Diluted	$	0.22	$	0.34	$	0.48	$	0.64


See accompanying notes to unaudited consolidated financial statements.

Table of Contents


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

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	9,559	$	15,874	$	21,266	$	30,001
Other comprehensive (loss) income:
Unrealized (losses) gains on debt securities available-for-sale:
Net unrealized holding (losses) gains	(3,891)		(11,079)		4,506		(45,973)
Less: reclassification adjustment for net losses (gains) included in net income	18		—		17		(264)
Net unrealized (losses) gains	(3,873)		(11,079)		4,523		(46,237)
Post-retirement benefits adjustment	—		—		—		(48)

Other comprehensive (loss) income before tax	(3,873)		(11,079)		4,523		(46,285)
Income tax benefit (expense) related to net unrealized holding (losses) gains on debt securities available-for-sale	1,089		3,102		(1,261)		12,869
Income tax (benefit) expense related to reclassification adjustment for gains included in net income	(5)		—		(5)		74
Income tax benefit related to post retirement benefit adjustment	—		—		—		13

Other comprehensive (loss) income, net of tax	(2,789)		(7,977)		3,257		(33,329)
Comprehensive income (loss)	$	6,770	$	7,897	$	24,523	$	(3,328)

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

NORTHFIELD BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Three Months Ended June 30, 2023 and 2022

(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, 2022	48,910,192	$	648	$	588,131	$	(16,822)	$	389,387	$	(23,289)	$	(222,657)	$	715,398
Net income								15,874						15,874
Other comprehensive loss, net of tax										(7,977)				(7,977)
ESOP shares allocated or committed to be released				163		238								401
Stock compensation expense				449										449
Restricted stock forfeitures	(13,738)			197								(197)		—
Exercise of stock options, net														—
Cash dividends declared and paid ($0.13 per common share)								(6,130)						(6,130)
Repurchase of treasury stock (average cost of $12.96 per share)	(211,579)											(2,742)		(2,742)

Balance at June 30, 2022	48,684,875	$	648	$	588,940	$	(16,584)	$	399,131	$	(31,266)	$	(225,596)	$	715,273

Balance at March 31, 2023	46,530,167	$	648	$	588,532	$	(15,422)	$	424,148	$	(42,285)	$	(257,455)	$	698,166
Net income								9,559						9,559
Other comprehensive loss, net of tax										(2,789)				(2,789)
ESOP shares allocated or committed to be released				67		230								297
Stock compensation expense				505										505

Restricted stock forfeitures	(16,154)			231								(231)		—

Cash dividends declared and paid ($0.13 per common share)								(5,786)						(5,786)
Repurchase of treasury stock (average cost of $10.48 per share)	(1,270,340)											(13,311)		(13,311)

Balance at June 30, 2023	45,243,673	$	648	$	589,335	$	(15,192)	$	427,921	$	(45,074)	$	(270,997)	$	686,641

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

NORTHFIELD BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Six Months Ended June 30, 2023 and 2022

(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, 2021	49,266,733	$	648	$	589,972	$	(17,058)	$	381,361	$	2,063	$	(217,103)	$	739,883
Net income								30,001						30,001
Other comprehensive loss, net of tax										(33,329)				(33,329)
ESOP shares allocated or committed to be released				378		474								852
Stock compensation expense				845										845
Restricted stock issuance	157,416			(2,484)								2,484		—
Restricted stock forfeitures	(16,613)			237								(237)		—
Exercise of stock options, net	17,040			(8)								239		231
Cash dividends declared and paid ($0.13 per common share)								(12,231)						(12,231)
Repurchase of treasury stock (average cost of $14.84 per share)	(739,701)											(10,979)		(10,979)

Balance at June 30, 2022	48,684,875	$	648	$	588,940	$	(16,584)	$	399,131	$	(31,266)	$	(225,596)	$	715,273

Balance at December 31, 2022	47,442,488	$	648	$	590,249	$	(15,650)	$	418,353	$	(48,331)	$	(243,879)	$	701,390

Net income								21,266						21,266
Other comprehensive income, net of tax										3,257				3,257
ESOP shares allocated or committed to be released				232		458								690
Stock compensation expense				1,223										1,223
Restricted stock issuance	173,060			(2,670)								2,670		—
Restricted stock forfeitures	(21,252)			308								(308)		—
Exercise of stock options, net	7,600			(7)								107		100
Cash dividends declared and paid ($0.13 per common share)								(11,698)						(11,698)
Repurchase of treasury stock (average cost of $12.42 per share)	(2,358,223)											(29,587)		(29,587)

Balance at June 30, 2023	45,243,673	$	648	$	589,335	$	(15,192)	$	427,921	$	(45,074)	$	(270,997)	$	686,641

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

NORTHFIELD BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (In thousands)


	Six Months Ended June 30,
	2023		2022
Net income	$	21,266	$	30,001
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	894		552
ESOP and stock compensation expense	1,913		1,697

Depreciation	1,832		1,857
Amortization of premiums and deferred loan costs, net of accretion of discounts and deferred loan fees	3,876		4,915
Amortization of debt issuance costs	112		—
Amortization of intangible assets	62		93
Amortization of operating lease right-of-use assets	2,341		2,331
Income on bank-owned life insurance	(1,759)		(1,687)
Net gain on sale of loans	(35)		—
Proceeds from sale of loans held-for-sale	498		—
Origination of loans held-for-sale	(1,440)		—
Losses (gains) on available-for-sale debt securities, net	17		(264)
(Gains) losses on trading securities, net	(1,018)		2,365
Loss (gain) on sale of other real estate owned, net	7		(17)
Net sales of trading securities	38		695
Increase in accrued interest receivable	(295)		(376)
Increase in other assets	(6,983)		(1,155)
Decrease in accrued expenses and other liabilities	(307)		(623)
Net cash provided by operating activities	21,019		40,384
Cash flows from investing activities:
Net increase in loans receivable	(29,716)		(300,245)
Purchases of loans	(3,781)		(7,696)

Purchases of FHLB of New York stock	(36,054)		(5,423)
Redemptions of FHLB of New York stock	26,060		7,817
Purchases of debt securities available-for-sale	—		(164,988)
Purch

Northfield Bancorp, Inc. [NFBK] Filings
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-K	[2023-03-01]
10-Q	[2022-11-09]
10-Q	[2022-08-08]
10-Q	[2022-05-10]
10-K	[2022-03-01]
10-Q	[2021-11-09]
10-Q	[2021-08-09]
10-Q	[2021-05-10]
10-K	[2021-03-10]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-03-02]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-K	[2019-03-01]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-01]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-16]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-11]
10-K	[2015-03-16]
10-Q	[2014-11-07]
10-Q	[2014-08-11]
10-Q	[2014-05-09]
10-K	[2014-03-17]
10-Q	[2013-11-12]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-18]
10-Q	[2012-12-24]
S-1	[2012-06-08]