Northfield Bancorp, Inc. Announces Second Quarter 2022 Results

• DILUTED EARNINGS PER SHARE WERE $zero.34 FOR THE CURRENT QUARTER AS COMPARED TO $zero.30 FOR THE TRAILING QUARTER, AND $zero.40 FOR THE SECOND QUARTER OF 2021.
• NET INTEREST MARGIN INCREASED BY 16 BASIS POINTS TO three.03% COMPARED TO 2.87% FOR THE TRAILING QUARTER, AND BY SEVEN BASIS POINTS COMPARED TO 2.96% FOR THE SECOND QUARTER OF 2021.
• LOANS HELD-FOR-INVESTMENT, EXCLUDING PAYCHECK PROTECTION PROGRAM (“PPP”) LOANS, INCREASED $225.7 MILLION, OR 23.three% ANNUALIZED, DURING THE QUARTER. CREDIT QUALITY REMAINS STRONG WITH NON-PERFORMING LOANS TO TOTAL LOANS AT zero.25%.
• TOTAL TRANSACTION DEPOSITS INCREASED $28.three MILLION, OR 5.2% ANNUALIZED, DURING THE QUARTER. TRANSACTION ACCOUNTS REPRESENT 50% OF TOTAL DEPOSITS AT QUARTER END.
• ISSUED $62.zero MILLION OF SUBORDINATED DEBT AT AN INITIAL FIXED RATE OF 5.zero% FOR THE FIRST FIVE YEARS.
• BOARD OF DIRECTORS APPROVED A $45.zero MILLION STOCK REPURCHASE PROGRAM. THE COMPANY REPURCHASED 211,579 SHARES FOR A COST OF $2.7 MILLION THROUGH JUNE 30, 2022.
• CASH DIVIDEND DECLARED OF $zero.13 PER SHARE OF COMMON STOCK, PAYABLE AUGUST 24, 2022, TO STOCKHOLDERS OF RECORD AS OF AUGUST 10, 2022.

WOODBRIDGE, N.J., July 27, 2022 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq: NFBK) (or the “Firm”), the holding firm for Northfield Financial institution, reported diluted earnings per widespread share of $zero.34 and $zero.64 for the three and 6 months ended June 30, 2022, respectively, as in comparison with $zero.40 and $zero.78 per diluted share for the three and 6 months ended June 30, 2021, respectively. Web earnings for the three and 6 months ended June 30, 2022, had been down from the comparative prior 12 months durations primarily attributable to a profit within the provision for credit score losses on loans within the prior 12 months. Earnings for the three and 6 months ended June 30, 2021, included a profit for credit score losses of $three.7 million and $6.1 million, respectively, reflecting continued enchancment within the financial forecast in addition to an enchancment in asset high quality and a decline in mortgage balances, as in comparison with a provision for credit score lack of $149,000 and $552,000, for the three and 6 months ended June 30, 2022. Earnings for the three and 6 months ended June 30, 2021, additionally included a acquire on sale of loans of $1.four million, and earnings for the six months ended June 30, 2021, included roughly $1.9 million of accretable revenue associated to the payoffs of bought credit score deteriorated (“PCD”) loans.

Commenting on the quarter, Steven M. Klein, the Firm’s Chairman, President and Chief Government Officer acknowledged, “I’m happy to announce Northfield has reported a robust quarter of economic efficiency. Strong mortgage progress at greater rates of interest, sustaining our low price of deposits, and prudently managing bills, with a concentrate on sustaining sturdy asset high quality, has and can proceed to be key drivers to our long-term success.”

Mr. Klein additional famous, “I’m happy to announce that the Board of Administrators has declared a money dividend of $zero.13 per widespread share, payable August 24, 2022, to stockholders of file on August 10, 2022.”

Outcomes of Operations

Comparability of Working Outcomes for the Six Months Ended June 30, 2022 and 2021

Web revenue was $30.zero million and $38.5 million for the six months ended June 30, 2022 and June 30, 2021, respectively. Vital variances from the comparable prior 12 months interval are as follows: a $1.9 million lower in web curiosity revenue, a $6.6 million improve within the provision for credit score losses on loans, a $5.1 million lower in non-interest revenue, a $2.zero million lower in non-interest expense, and a $three.1 million lower in revenue tax expense.

Web curiosity revenue for the six months ended June 30, 2022, decreased $1.9 million, or 2.four%, to $77.zero million, from $78.9 million for the six months ended June 30, 2021, primarily attributable to an eight foundation level lower in web curiosity margin to 2.95% from three.03% for the six months ended June 30, 2021, partially offset by a $12.6 million, or zero.2%, improve within the common stability of interest-earning belongings. The rise within the common stability of interest-earning belongings was attributable to will increase within the common stability of different securities of $155.four million and the common stability of loans excellent of $9.6 million, partially offset by decreases within the common stability of mortgage-backed securities of $122.6 million, the common stability of Federal House Mortgage Financial institution of New York (“FHLBNY”) inventory of $6.7 million, and the common stability of interest-earning deposits in monetary establishments of $23.zero million.

The lower in web curiosity margin was primarily attributable to decrease yields on interest-earning belongings, due partly to a $2.2 million lower in accreted curiosity revenue associated to PCD loans, and a $1.7 million discount in charges associated to the forgiveness of PPP loans, partially offset by the decrease price of interest-bearing liabilities. Yields on interest-earning belongings decreased 19 foundation factors to three.21% for the six months ended June 30, 2022, from three.40% for the six months ended June 30, 2021. The price of interest-bearing liabilities decreased by 12 foundation factors to zero.36% for the six months ended June 30, 2022, from zero.48% for the six months ended June 30, 2021, primarily pushed by decrease price of deposits and a change within the composition of the deposit portfolio as the common stability of transaction accounts elevated and the common stability of certificates of deposit decreased. The Firm accreted curiosity revenue associated to PCD loans of $729,000 for the six months ended June 30, 2022, as in comparison with $2.9 million for the six months ended June 30, 2021. The upper accretable PCD curiosity revenue within the prior 12 months was primarily associated to payoffs of PCD loans within the first quarter of 2021. Charges acknowledged from PPP loans totaled $1.1 million for the six months ended June 30, 2022, as in comparison with $2.eight million for the six months ended June 30, 2021. Web curiosity revenue for the six months ended June 30, 2022, included mortgage prepayment revenue of $2.6 million as in comparison with $2.2 million for the six months ended June 30, 2021.

The availability for credit score losses on loans elevated by $6.6 million to a provision of $552,000 for the six months ended June 30, 2022, in comparison with a advantage of $6.1 million for the six months ended June 30, 2021. The prior 12 months profit for credit score losses was primarily attributable to enchancment within the financial forecast and an enchancment in asset high quality in addition to a decline in mortgage balances. The present 12 months provision for credit score losses is because of progress within the mortgage portfolio and a worsening macroeconomic outlook, partially offset by an enchancment in asset high quality and decrease web charge-offs. At June 30, 2022, administration, using judgement, qualitatively adjusted the forecast to account for financial uncertainty that will not be captured within the third occasion financial forecast eventualities utilized. Web charge-offs had been $494,000 for the six months ended June 30, 2022, as in comparison with web charge-offs of $2.four million for the six months ended June 30, 2021, which associated to PCD loans.

Non-interest revenue decreased by $5.1 million, or 67.2%, to $2.5 million for the six months ended June 30, 2022, from $7.6 million for the six months ended June 30, 2021, due primarily to a lower of $three.5 million in positive factors on buying and selling securities, web, a $1.four million lower in positive factors on gross sales of loans, and a $342,000 lower in web realized positive factors on available-for-sale debt securities. For the six months ended June 30, 2022, losses on buying and selling securities had been $2.four million, as in comparison with positive factors of $1.2 million for the six months ended June 30, 2021. The buying and selling portfolio is utilized to fund the Firm’s deferred compensation obligation to sure workers and administrators of the Firm’s deferred compensation plan (the “Plan”). The members of this Plan, at their election, defer a portion of their compensation. Positive factors and losses on buying and selling securities don’t have any impact on web revenue since members profit from, and bear the total threat of, adjustments within the buying and selling securities market values. Subsequently, the Firm information an equal and offsetting quantity in compensation expense, reflecting the change within the Firm’s obligations beneath the Plan. The lower in positive factors on gross sales of loans is because of a $1.four million acquire realized on the sale of roughly $126.three million of multifamily loans within the second quarter of 2021.

Non-interest expense decreased $2.zero million, or 5.1%, to $37.four million for the six months ended June 30, 2022, in comparison with $39.four million for the six months ended June 30, 2021. The lower was primarily attributable to a $2.four million lower in worker compensation and advantages. The lower was attributable to a $three.5 million lower within the mark to market of the Firm’s deferred compensation plan expense, which as mentioned above has no impact on web revenue, in addition to a lower in medical profit prices, partially offset by a rise in wage expense associated to annual advantage will increase and a rise in fairness award expense associated to new awards issued beneath the 2019 Fairness Incentive Plan ( the “2019 EIP”) within the first quarter of 2022. Moreover, occupancy expense decreased by $507,000, primarily associated to decrease snow elimination prices, and promoting expense decreased by $312,000. Partially offsetting the decreases was a rise in skilled charges of $399,000 and a rise in different expense of $812,000, primarily attributable to a rise within the reserve for unfunded commitments, in addition to a rise in different working bills.

The Firm recorded revenue tax expense of $11.5 million for the six months ended June 30, 2022, in comparison with $14.6 million for the six months ended June 30, 2021. The efficient tax charge for the six months ended June 30, 2022, was 27.6% in comparison with 27.5% for the six months ended June 30, 2021.

Comparability of Working Outcomes for the Three Months Ended June 30, 2022 and 2021

Web revenue was $15.9 million and $19.eight million for the quarters ended June 30, 2022 and June 30, 2021, respectively. Vital variances from the comparable prior 12 months quarter are as follows: a $1.four million improve in web curiosity revenue, a $three.9 million improve within the provision for credit score losses on loans, a $four.2 million lower in non-interest revenue, a $1.2 million lower in non-interest expense, and a $1.5 million lower in revenue tax expense.

Web curiosity revenue for the quarter ended June 30, 2022, elevated $1.four million, or three.6%, primarily attributable to a seven foundation level improve in web curiosity margin to three.03% from 2.96% for the quarter ended June 30, 2021, and a rise in common interest-earning belongings of $70.1 million, or 1.three%. The rise within the common stability of interest-earning belongings was primarily attributable to will increase within the common stability of different securities of $156.four million and the common stability of loans excellent of $44.6 million, partially offset by decreases within the common stability of mortgage-backed securities of $68.zero million, the common stability of interest-earning deposits in monetary establishments of $55.eight million, and the common stability of FHLBNY inventory of $7.zero million. Partially offsetting the rise in web curiosity revenue was a $1.1 million discount in charges associated to the forgiveness of PPP loans within the present quarter as in comparison with the quarter ended June 30, 2021.

The rise in web curiosity margin was primarily attributable to a lower in the price of interest-bearing liabilities which decreased by 12 foundation factors to zero.35% for the quarter ended June 30, 2022, from zero.47% for the quarter ended June 30, 2021, pushed primarily by decrease price of deposits and a change within the composition of the deposit portfolio as the common stability of transaction accounts elevated and the common stability of certificates of deposit decreased. Partially offsetting this lower was a lower in yields on interest-earning belongings which decreased by two foundation factors to three.29% for the quarter ended June 30, 2022, from three.31% for the quarter ended June 30, 2021. Web curiosity revenue for the quarter ended June 30, 2022, included mortgage prepayment revenue of $1.5 million, as in comparison with $1.three million for the quarter ended June 30, 2021. The Firm accreted curiosity revenue associated to PCD loans of $339,000 for the quarter ended June 30, 2022, as in comparison with $443,000 for quarter ended June 30, 2021. Charges acknowledged from PPP loans totaled $432,000 for the quarter ended June 30, 2022, as in comparison with $1.6 million for the quarter ended June 30, 2021.

The availability for credit score losses on loans elevated by $three.9 million to a provision of $149,000 for the quarter ended June 30, 2022, from a advantage of $three.7 million for the quarter ended June 30, 2021. The prior 12 months profit for credit score losses was primarily attributable to enchancment within the financial forecast and an enchancment in asset high quality in addition to a decline in mortgage balances. The present quarter provision for credit score losses is because of progress within the mortgage portfolio, greater web charge-offs, and a worsening macroeconomic outlook, partially offset by an enchancment in asset high quality. At June 30, 2022, administration, using judgement, qualitatively adjusted the forecast to account for financial uncertainty that will not be captured within the third occasion financial forecast eventualities utilized. Web charge-offs had been $392,000 for the quarter ended June 30, 2022, in comparison with web charge-offs of $three,000 for the quarter ended June 30, 2021.

Non-interest revenue decreased by $four.2 million, or 84.four%, to $765,000 for the quarter ended June 30, 2022, from $four.9 million for the quarter ended June 30, 2021, primarily attributable to a $2.four million lower in positive factors on buying and selling securities, web, a $1.four million lower in positive factors on gross sales of loans, and a $509,000 lower in web realized positive factors on available-for-sale debt securities. For the quarter ended June 30, 2022, losses on buying and selling securities, web, included losses of $1.6 million associated to the Firm’s buying and selling portfolio, in comparison with positive factors of $807,000 within the comparative prior 12 months quarter. Positive factors and losses on buying and selling securities don’t have any impact on web revenue since members profit from, and bear the total threat of, adjustments within the buying and selling securities market values.

Non-interest expense decreased by $1.2 million, or 5.eight%, to $18.7 million for the quarter ended June 30, 2022, from $19.9 million for the quarter ended June 30, 2021. The lower was due primarily to a $1.four million lower in compensation and worker advantages, attributable to a $2.four million lower within the mark to market of the Firm’s deferred compensation plan expense, which has no impact on web revenue, partially offset by a rise in wage expense associated to annual advantage will increase and a rise in fairness award expense associated to new awards issued beneath the 2019 EIP within the first quarter of 2022. Moreover, occupancy expense decreased by $214,000 and promoting expense decreased by $280,000. The decreases had been partially offset by will increase of $397,000 in skilled charges and $370,000 in different expense, primarily associated to a rise within the reserve for unfunded commitments,

The Firm recorded revenue tax expense of $6.1 million for the quarter ended June 30, 2022, in comparison with $7.6 million for the quarter ended June 30, 2021. The efficient tax charge for each quarters ended June 30, 2022, and June 30, 2021, was 27.eight%.

Comparability of Working Outcomes for the Three Months Ended June 30, 2022 and March 31, 2022

Web revenue was $15.9 million and $14.1 million for the quarters ended June 30, 2022, and March 31, 2022, respectively. Vital variances from the prior quarter are as follows: a $three.2 million improve in web curiosity revenue, a $254,000 lower within the provision for credit score losses on loans, a $948,000 lower in non-interest revenue, and a $771,000 improve in revenue tax expense.

Web curiosity revenue for the quarter ended June 30, 2022, elevated by $three.2 million, or eight.7%, primarily attributable to a 16 foundation level improve in web curiosity margin to three.03% from 2.87% for the quarter ended March 31, 2022, and a $97.four million, or 1.9%, improve within the common stability of interest-earning belongings. The rise within the common stability of interest-earning belongings was primarily attributable to will increase within the common stability of loans excellent of $144.7 million, and the common stability of different securities of $41.9 million, partially offset by a lower within the common stability of mortgage-backed securities of $39.zero million interest-earning deposits in monetary establishments of $48.6 million, and the common stability of FHLBNY inventory of $1.5 million.

The rise in web curiosity margin was primarily attributable to greater yields on interest-earning belongings, which elevated by 16 foundation factors to three.29% for the quarter ended June 30, 2022, from three.13% for the quarter ended March 31, 2022, reflective of the rising charge setting. The price of interest-bearing liabilities decreased by one foundation level to zero.35% for the quarter ended June 30, 2022, from zero.36% for the quarter ended March 31, 2022. Web curiosity revenue for the quarter ended June 30, 2022, included mortgage prepayment revenue of $1.5 million as in comparison with $1.1 million for the quarter ended March 31, 2022. The Firm accreted curiosity revenue associated to PCD loans of $339,000 for the quarter ended June 30, 2022, as in comparison with $391,000 for the quarter ended March 31, 2022. Charges acknowledged from PPP loans totaled $432,000 and $701,000 respectively, for the quarters ended June 30, 2022, and March 31, 2022.

The availability for credit score losses on loans decreased by $254,000 to a provision of $149,000 for the quarter ended June 30, 2022, from a provision of $403,000 for the quarter ended March 31, 2022. The lower within the provision was primarily attributable to an enchancment in asset high quality, partially offset by mortgage progress, greater web charge-offs, and a worsening macroeconomic outlook. Web charge-offs had been $392,000 for the quarter ended June 30, 2022, as in comparison with $102,000 for the quarter ended March 31, 2022.

Non-interest revenue decreased by $948,000, or 55.three%, to $765,000 for the quarter ended June 30, 2022, from $1.7 million for the quarter ended March 31, 2022. The lower was primarily attributable to a rise of $761,000 in losses on buying and selling securities, web, and a lower of $264,000 in realized positive factors on available-for-sale debt securities, web. For the quarter ended June 30, 2022, losses on buying and selling securities, web, had been $1.6 million, in comparison with losses of $802,000 for the quarter ended March 31, 2022.

Non-interest expense remained secure at $18.7 million for each quarters ended June 30, 2022 and March 31, 2022.

The Firm recorded revenue tax expense of $6.1 million for the quarter ended June 30, 2022, in comparison with $5.three million for the quarter ended March 31, 2022. The efficient tax charge for the quarter ended June 30, 2022 was 27.eight%, in comparison with 27.four% for the quarter ended and March 31, 2022.

Monetary Situation

Complete belongings elevated by $216.6 million, or four.zero%, to $5.65 billion at June 30, 2022, from $5.43 billion at December 31, 2021. The rise was primarily attributable to will increase in whole loans of $307.6 million, or eight.1%, money and money equivalents of $19.2 million, or 21.zero%, and different belongings of $9.9 million, or 26.7%, partially offset by a lower in available-for-sale debt securities of $121.four million, or 10.zero%.

As of June 30, 2022, we estimate that our non-owner occupied industrial actual property focus (as outlined by regulatory steerage) to whole risk-based capital was roughly 468.9%. Administration believes that Northfield Financial institution (the “Financial institution”) has applied applicable threat administration practices together with threat assessments, board-approved underwriting insurance policies and associated procedures, which embrace monitoring Financial institution portfolio efficiency, performing market evaluation (financial and actual property), and stressing of the Financial institution’s industrial actual property portfolio beneath extreme, opposed financial circumstances. Though administration believes the Financial institution has applied applicable insurance policies and procedures to handle its industrial actual property focus threat, the Financial institution’s regulators might require it to implement further insurance policies and procedures or might require it to keep up greater ranges of regulatory capital, which could adversely have an effect on its mortgage originations, capability to pay dividends, and profitability.

Money and money equivalents elevated by $19.2 million, or 21.zero%, to $110.2 million at June 30, 2022, from $91.1 million at December 31, 2021, primarily as a result of liquidity obtained from loans and securities paydowns in addition to progress in deposits. Balances fluctuate based mostly on the timing of receipt of safety and mortgage repayments and the redeployment of money into higher-yielding belongings akin to loans and securities, or the funding of deposit outflows or borrowing maturities.

Loans held-for-investment, web, elevated by $305.2 million, or eight.zero%, to $four.11 billion at June 30, 2022 from $three.81 billion at December 31, 2021. The general improve was attributable to sturdy mortgage originations, and, to a lesser extent, the acquisition of two one-to-four household residential mortgage swimming pools of roughly $7.7 million. Multifamily loans elevated $252.9 million, or 10.zero%, to $2.77 billion at June 30, 2022 from $2.52 billion at December 31, 2021, industrial actual property loans elevated $41.6 million, or 5.1%, to $850.2 million at June 30, 2022 from $808.6 million at December 31, 2021, dwelling fairness loans elevated $27.9 million, or 25.four%, to $137.9 million at June 30, 2022 from $110.zero million at December 31, 2021, industrial and industrial loans (excluding PPP loans) elevated $21.zero million, or 20.9%, to $121.5 million at June 30, 2022 from $100.5 million at December 31, 2021, and, one-to-four household residential loans elevated $1.7 million, or zero.9%. The will increase had been partially offset by decreases in development and land loans of $eight.9 million, or 32.5%, to $18.6 million at June 30, 2022 from $27.5 million at December 31, 2021, and PPP loans of $28.6 million, or 70.5%, to $11.9 million at June 30, 2022 from $40.5 million at December 31, 2021. By June 30, 2022, 2,307 debtors have obtained PPP forgiveness funds totaling roughly $217.eight million.

There have been 24 PPP loans excellent totaling $11.9 million at June 30, 2022, in comparison with 377 loans excellent totaling $40.5 million at December 31, 2021. The PPP offers for lender processing charges that vary from 1% to five% of the ultimate disbursement made to particular person debtors. As of June 30, 2022, now we have obtained mortgage processing charges of $9.5 million, of which $eight.6 million has been acknowledged in earnings, together with $1.1 million acknowledged within the six months ended June 30, 2022. The remaining unearned charges will likely be acknowledged in revenue over the remaining time period of the loans.

PCD loans totaled $13.1 million at June 30, 2022, and $15.eight million at December 31, 2021. Upon adoption of the CECL accounting normal on January 1, 2021, the allowance for credit score losses associated to PCD loans was recorded by a gross-up that elevated the amortized cost-basis of PCD loans by $6.eight million with a corresponding improve to the allowance for credit score losses. The lower within the PCD mortgage stability at June 30, 2022 was attributable to PCD loans being bought and paid off in the course of the interval. The vast majority of the remaining PCD mortgage stability consists of loans acquired as a part of a Federal Deposit Insurance coverage Company-assisted transaction. The Firm accreted curiosity revenue of $339,000 and $729,000 attributable to PCD loans for the three and 6 months ended June 30, 2022, respectively, as in comparison with $443,000 and $2.9 million for the three and 6 months ended June 30, 2021, respectively. The lower in revenue accreted for the six months ended June 30, 2022 is as a result of payoff of PCD loans within the prior 12 months. PCD loans had an allowance for credit score losses of roughly $four.2 million at June 30, 2022. Mortgage balances are summarized as follows (dollars in 1000’s):

The next tables element multifamily actual property originations for the six months ended June 30, 2022 and 2021 (dollars in 1000’s): 

The next desk particulars mortgage swimming pools bought in the course of the six months ended June 30, 2022 (dollars in 1000’s): 

(1) Web of servicing payment retained by the originating financial institution

The geographic areas of the properties collateralizing the loans bought within the desk above are as follows: 63.three% in New York and 36.7% in New Jersey.

The Firm’s available-for-sale debt securities portfolio decreased by $121.four million, or 10.zero%, to $1.09 billion at June 30, 2022, from $1.21 billion at December 31, 2021. The lower was primarily attributable to paydowns, maturities, calls, and gross sales. At June 30, 2022, $821.2 million of the portfolio consisted of residential mortgage-backed securities issued or assured by Fannie Mae, Freddie Mac, or Ginnie Mae. As well as, the Firm held $74.eight million in U.S. Authorities company securities, $190.eight million in company bonds, all of which had been thought-about funding grade at June 30, 2022, and $52,000 in municipal bonds.

Fairness securities elevated by $2.5 million to $7.eight million at June 30, 2022, from $5.three million at December 31, 2021, attributable to a rise in our funding in a Small Enterprise Administration Mortgage Fund. This funding is utilized by the Financial institution as a part of its Neighborhood Reinvestment Act program.  Complete liabilities elevated $241.2 million, or 5.1%, to $four.93 billion at June 30, 2022, from $four.69 billion at December 31, 2021. The rise was primarily attributable to a rise in deposits of $248.7 million, the issuance of subordinated debt, web of issuance prices, of $60.9 million, and a rise prematurely funds by debtors for taxes and insurance coverage of $four.5 million, partially offset by a lower in FHLB advances and different borrowings of $74.7 million.

Deposits elevated $248.7 million, or 6.zero%, to $four.42 billion at June 30, 2022, as in comparison with $four.17 billion at December 31, 2021. The rise was attributable to will increase of $193.zero million in transaction accounts and $140.four million in certificates of deposit, partially offset by decreases of $16.eight million in financial savings accounts and $68.zero million in cash market accounts.

Deposit account balances are summarized as follows (dollars in 1000’s):

Included within the desk above are enterprise and municipal deposit account balances as follows (dollars in 1000’s):

Borrowed funds decreased to $407.9 million at June 30, 2022, from $421.eight million at December 31, 2021. The lower in borrowings for the interval was primarily attributable to a lower in FHLB and different borrowings of $49.7 million, and a lower in securities bought beneath agreements to repurchase of $25.zero million, partially offset by the issuance of $62.zero million in combination principal quantity of mounted to floating subordinated notes (the “Notes”). The Notes are non-callable for 5 years, have a acknowledged maturity of June 30, 2032, and bear curiosity at a set charge of 5.00% till June 30, 2027. From July 2027 to the maturity date or early redemption date, the rate of interest will reset quarterly to a stage equal to the then present three-month Secured In a single day Financing Charge plus 200 foundation factors. Debt issuance prices totaled $1.1 million. Administration makes use of borrowings to mitigate rate of interest threat, for short-term liquidity, and to a lesser extent as a part of leverage methods.

The next is a desk of time period borrowing maturities (excluding in a single day borrowings and subordinated debt) and the weighted common charge by 12 months at June 30, 2022 (dollars in 1000’s):

Complete stockholders’ fairness decreased by $24.6 million to $715.three million at June 30, 2022, from $739.9 million at December 31, 2021. The lower was attributable to a $33.three million lower in accrued different complete revenue related to a decline within the estimated truthful worth of our debt securities available-for-sale portfolio, $12.2 million in dividend funds, and $11.zero million in inventory repurchases, partially offset by web revenue of $30.zero million for the six months ended June 30, 2022, and a $1.9 million improve in fairness award exercise. Throughout the first quarter of 2022, the $54.2 million inventory repurchase program that was authorised in March 2021, was accomplished after reaching the acquisition restrict. On June 16, 2022, the Board of Administrators of the Firm authorised a brand new $45.zero million inventory repurchase program. Throughout the six months ended June 30, 2022, the Firm repurchased 739,701 shares of its widespread inventory excellent at a mean value of $14.84 for a complete of $11.zero million pursuant to the authorised inventory repurchase plans.

The Firm continues to keep up satisfactory liquidity and a robust capital place. The Firm’s most liquid belongings are money and money equivalents, company bonds, and unpledged mortgage-related securities issued or assured by the U.S. Authorities, Fannie Mae, or Freddie Mac, that we will both borrow towards or promote. We even have the power to give up bank-owned life insurance coverage contracts. The give up of those contracts would topic the Firm to revenue taxes and penalties for will increase within the money give up values over the unique premium funds. We even have the power to acquire further funding from the FHLB and Federal Reserve Financial institution using unencumbered and unpledged securities and multifamily loans. The Firm expects to have ample funds accessible to satisfy present commitments within the regular course of enterprise.

The Firm had the next main sources of liquidity at June 30, 2022 (dollars in 1000’s): 

(1) Excludes $17.2 million of money at Northfield Financial institution.(2) Represents estimated remaining borrowing potential.        

The Firm and the Financial institution make the most of the Neighborhood Financial institution Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital necessities within the usually relevant capital guidelines. At June 30, 2022, the Firm and the Financial institution’s estimated CBLR ratios had been 12.75% and 12.19%, respectively, which exceeded the minimal requirement to be thought-about well-capitalized of 9%.

Asset High quality

The next desk particulars whole non-accrual loans (excluding PCD), non-performing loans, non-performing belongings, troubled debt restructurings on which curiosity is accruing, and accruing loans 30 to 89 days delinquent at June 30, 2022, March 31, 2022, and December 31, 2021 (dollars in 1000’s):

The rise in non-accrual loans was primarily attributable to one $2.2 million multifamily mortgage positioned on non-accrual standing in the course of the present quarter. The mortgage is effectively secured with an residence constructing in Brooklyn, New York, containing eight residential models and has a current appraised worth of $2.eight million.

Different Actual Property Owned

At June 30, 2022, the Firm had no belongings acquired by foreclosures. As of March 31, 2022 and December 31, 2021, different actual property owned was comprised of 1 property positioned in New Jersey, which had a carrying worth of roughly $100,000, and which was bought in the course of the second quarter of 2022 for a small acquire.

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual standing totaled $2.7 million, $four.1 million, and $1.2 million at June 30, 2022, March 31, 2022, and December 31, 2021, respectively. The next desk units forth delinquencies for accruing loans by kind and by quantity at June 30, 2022, March 31, 2022, and December 31, 2021 (dollars in 1000’s):   

The lower in delinquent multifamily loans is primarily attributable to one mortgage with a stability of $2.2 million that was transferred to non-accrual standing within the present quarter. The mortgage is effectively secured with an residence constructing in Brooklyn, New York, containing eight residential models and has a current appraised worth of $2.eight million.

PCD Loans (Held-for-Funding)

Underneath the CECL normal, the Firm will proceed to account for PCD loans at estimated truthful worth utilizing discounted anticipated future money flows deemed to be collectible on the date acquired. Primarily based on its detailed overview of PCD loans and expertise in mortgage exercises, administration believes it has an inexpensive expectation in regards to the quantity and timing of future money flows and accordingly has categorised PCD loans ($13.1 million at June 30, 2022 and $15.eight million at December 31, 2021) as accruing, despite the fact that they might be contractually overdue. At June 30, 2022, zero.5% of PCD loans had been overdue 30 to 89 days, and 24.7% had been overdue 90 days or extra, as in comparison with 10.5% and 19.2%, respectively, at December 31, 2021.

Different

Throughout the fourth quarter of 2021, the Financial institution downgraded a lending relationship with an excellent principal stability at December 31, 2021, of roughly $15.6 million to substandard, which is comprised of two industrial actual property loans with balances of $10.9 million, and a industrial line of credit score secured by all unencumbered enterprise belongings with a stability of $four.7 million. All attracts on the road are on the discretion of the Financial institution. The Financial institution has obtained paydowns of roughly $three.eight million on the industrial line of credit score, decreasing the excellent stability to roughly $913,000 as of June 30, 2022. At June 30, 2022, the combination balances of the loans was $11.6 million.

The industrial actual property loans are secured by two industrial properties with a present appraised worth of $19.2 million. The lending relationship was downgraded because of authorized issues towards sure officers of the borrowing entities, together with sure people who’re guarantors to the loans, and the influence such authorized issues could have on future operations of the entities.

All loans beneath the lending relationship are present as of July 27, 2022, and the entities proceed to function. The Financial institution continues to guage the monetary situation, working outcomes and money flows of the associated entities and guarantors. At June 30, 2022, roughly $1.four million of the allowance for credit score losses has been designated to this lending relationship. Primarily based on info accessible, the loans haven’t been designated as impaired and stay on accrual standing. Nonetheless, there may be no assurances that a number of of the loans beneath the connection won’t migrate to non-accrual standing sooner or later or require the institution of further mortgage losses reserves.

About Northfield Financial institution

Northfield Financial institution, based in 1887, operates 38 full-service banking in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For extra details about Northfield Financial institution, please go to www.eNorthfield.com.

Ahead-Wanting Statements: This launch could include sure “ahead wanting statements” inside the which means of the Personal Securities Litigation Reform Act of 1995, and could also be recognized by way of such phrases as “could,” “consider,” “anticipate,” “anticipate,” “ought to,” “plan,” “estimate,” “predict,” “proceed,” and “potential” or the destructive of those phrases or different comparable terminology. Examples of forward-looking statements embrace, however will not be restricted to, estimates with respect to the monetary situation, outcomes of operations and enterprise of Northfield Bancorp, Inc. Any or the entire forward-looking statements on this launch and in some other public statements made by Northfield Bancorp, Inc. could transform flawed. They are often affected by inaccurate assumptions Northfield Bancorp, Inc. may make or by identified or unknown dangers and uncertainties as described in our SEC filings, together with, however not restricted to, these associated to basic financial circumstances, significantly available in the market areas by which the Firm operates, the results of the COVID-19 pandemic, together with the results of the steps taken to handle the pandemic and their influence on the Firm’s market and workers, competitors amongst depository and different monetary establishments, together with with respect to overdraft and different charges, adjustments in legal guidelines or authorities laws or insurance policies affecting monetary establishments, together with adjustments in regulatory charges and capital necessities, inflation and adjustments within the rate of interest setting that cut back our margins, cut back the truthful worth of economic devices or cut back our capability to originate loans, the results of conflict, battle, and acts of terrorism, our capability to efficiently combine acquired entities, and opposed adjustments within the securities markets. Consequently, no forward-looking assertion may be assured. Northfield Bancorp, Inc. doesn’t intend to replace any of the forward-looking statements after the date of this launch, or conform these statements to precise occasions.

(Tables observe)

NORTHFIELD BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA( in 1000’s, besides per share quantities) (unaudited)

(1) Annualized when applicable. (2) The effectivity ratio represents non-interest expense divided by the sum of web curiosity revenue and non-interest revenue.(three) Non-performing loans encompass non-accruing loans and loans 90 days or extra overdue and nonetheless accruing (excluding PCD loans), and are included in whole loans held-for-investment, web.(four) Contains originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.(5) Contains originated loans held-for-investment, PCD loans, and bought loans. (6) Excluding PPP loans (that are totally authorities assured and don’t carry any provision for losses) of $11.9 million, $24.three million, and $132.7 million at June 30, 2022, March 31, 2022, and June 30, 2021, respectively, the allowance for credit score losses to whole loans held for funding, web, totaled zero.95%, 1.01%, and 1.07%, respectively, at June 30, 2022, March 31, 2022, and June 30, 2021.(7) The Firm adopted the CECL accounting normal efficient January 1, 2021, and recorded a $10.four million improve to its allowance for credit score losses, together with reserves of $6.eight million associated to PCD loans. (eight) For the 12 months ended December 31, 2021, in reference to the adoption of CECL, the Firm acknowledged a cumulative impact adjustment that diminished stockholders’ fairness by $three.1 million, web of tax.

NORTHFIELD BANCORP, INC.CONSOLIDATED BALANCE SHEETS( in 1000’s, besides share and per share quantities) (unaudited)

(1) Tangible e book worth per share is calculated based mostly on whole stockholders’ fairness, excluding intangible belongings (goodwill and core deposit intangibles), divided by whole shares excellent as of the stability sheet date. Core deposit intangibles had been $347,000, $387,000, and $440,000 at June 30, 2022, March 31, 2022, and December 31, 2021, respectively, and are included in different belongings.

NORTHFIELD BANCORP, INC.CONSOLIDATED STATEMENT OF INCOME( in 1000’s, besides share and per share quantities) (unaudited)

NORTHFIELD BANCORP, INC.ANALYSIS OF NET INTEREST INCOME( in 1000’s) (unaudited)

(1) Common yields and charges are annualized.(2) Contains non-accruing loans.(three) Securities available-for-sale and different securities are reported at amortized price.(four) Web rate of interest unfold represents the distinction between the weighted common yield on interest-earning belongings and the weighted common price of interest-bearing liabilities.(5) Web interest-earning belongings characterize whole interest-earning belongings much less whole interest-bearing liabilities.(6) Web curiosity margin represents web curiosity revenue divided by common whole interest-earning belongings.

(1) Common yields and charges are annualized.(2) Contains non-accruing loans.(three) Securities available-for-sale and different securities are reported at amortized price.(four) Web rate of interest unfold represents the distinction between the weighted common yield on interest-earning belongings and the weighted common price of interest-bearing liabilities.(5) Web interest-earning belongings characterize whole interest-earning belongings much less whole interest-bearing liabilities.(6) Web curiosity margin represents web curiosity revenue divided by common whole interest-earning belongings.

Firm Contact:William R. JacobsChief Monetary OfficerTel: (732) 499-7200 ext. 2519

Supply: Northfield Bancorp, Inc.