Notable Items Include:
- 100% increase in earnings per share to $0.10 for the
quarter ended June 30, 2010, compared to $0.05 for the same quarter
in 2009; 64% increase in earnings per share to $0.18 for the six
months ended June 30, 2010, compared to $0.11 for the same period
in 2009
- 15% increase in net interest income for both the
quarter and six months ended June 30, 2010 as compared to the
comparable periods of 2009
- 6% increase in total loans compared to 2009 year
end
- Capital strong at 18.1% of total assets
- Efficiency ratio improved to 47.56% for the quarter
ended June 30, 2010 compared to 58.99% for the quarter ended June
30, 2009; efficiency ratio improved to 51.62% for the sixth months
ended June 30, 2010 compared to 57.90% for the six months ended
June 30, 2009
- Allowance for loan losses increases 24%, year to date,
to $19.1 million, representing 2.47% of total loans at June 30,
2010
- Annualized net charge-offs represent 0.44% of average
loans for the quarter ended June 30, 2010, compared to annualized
net charge-offs of 0.54% of average loans for the quarter ended
June 30, 2009
- Nonperforming loans total $51.5 million compared to
$50.0 million at March 31, 2010, and $41.8 million at December 31,
2009
Northfield Bancorp, Inc. (Nasdaq:NFBK), the
holding company for Northfield Bank, reported basic and diluted
earnings per common share of $0.10 and $0.18 for the quarter and
six months ended June 30, 2010, respectively, as compared to $0.05
and $0.11 for the quarter and six months ended June 30, 2009,
respectively.
Commenting on the second quarter results, John W. Alexander, the
Company's Chairman and Chief Executive Officer noted, "We continue
to focus on producing solid earnings by effectively deploying
capital, prudently growing loans, and managing risk to protect and
generate returns to our stockholders. Our capital continues to
significantly exceed that required to be considered "well
capitalized" for regulatory purposes, despite the lingering effects
of this difficult economic cycle, and weak loan
demand. Although we continue to experience elevated levels of
loan delinquencies, our underwriting and focus on real estate
lending in our marketplace have resulted in a relatively low level
of net charge-offs. We continue to be proactive in resolving
troubled loans, and are working to maximize collectibility while we
work with those borrowers who have a desire to meet their
obligations."
Mr. Alexander continued, "I am pleased to announce that the
Board of Directors has declared a quarterly cash dividend of $0.05
per common share, payable on August 25, 2010, to stockholders of
record as of August 11, 2010."
Financial Condition
Total assets increased $205.9 million, or 10.3%, to $2.2 billion
at June 30, 2010, from $2.0 billion at December 31, 2009. The
increase was primarily attributable to increases in securities of
$169.1 million and loans held for investment, net, of $43.6
million. In addition, bank owned life insurance increased
$10.9 million, primarily resulting from the purchase of $10.0
million of insurance policies during the quarter ended June 30,
2010, coupled with $937,000 of income earned on bank owned life
insurance for the six months ended June 30, 2010.
Loans held for investment, net, totaled $772.9 million at June
30, 2010, as compared to $729.3 million at December 31,
2009. The increase was primarily in multi-family real estate
loans, which increased $33.0 million, or 18.5%, to $211.4 million
at June 30, 2010, from $178.4 million at December 31,
2009. Commercial real estate loans increased $11.5 million, or
3.5%, to $339.3 million, insurance premium loans increased $9.3
million, or 23.0%, to $49.7 million, and home equity loans
increased $4.5 million, or 17.2%, from $26.1 million at December
31, 2009. These increases were partially offset by decreases
in residential loans, land and construction loans, and commercial
and industrial loans.
The Company's securities portfolio totaled $1.3 billion at June
30, 2010, as compared to $1.1 billion at December 31, 2009, an
increase of $169.1 million, or 14.8%. At June 30, 2010, $905.4
million of the portfolio consisted of residential mortgage-backed
securities issued or guaranteed by Fannie Mae, Freddie Mac, or
Ginnie Mae. The Company also held residential mortgage-backed
securities not guaranteed by Fannie Mae, Freddie Mac, or Ginnie
Mae, referred to as "private label securities." These private
label securities had an amortized cost of $128.4 million and an
estimated fair value of $132.6 million at June 30, 2010. These
private label securities portfolios were in a net unrealized gain
position of $4.1 million at June 30, 2010, consisting of gross
unrealized gains of $5.9 million and gross unrealized losses of
$1.8 million.
Of the $132.6 million of private label securities, three
securities with an estimated fair value of $13.3 million (amortized
cost of $14.9 million) are rated less than AAA at June 30,
2010. Of the three securities, one had an estimated fair value
of $2.5 million (amortized cost of $2.5 million) and was rated A+,
another had an estimated fair value of $6.1 million (amortized cost
of $7.2 million) and was rated Caa2, and the remaining security had
an estimated fair value of $4.8 million (amortized cost of $5.2
million) and was rated CCC. The Company continues to receive
principal and interest payments in accordance with the contractual
terms of each of these securities. Management has evaluated,
among other things, delinquency status, location of collateral,
estimated prepayment speeds, and the estimated default rates and
loss severity in liquidating the underlying collateral for each of
these three securities. Since management does not have the
intent to sell the securities, and it is more likely than not that
the Company will not be required to sell the securities before
their anticipated recovery, the Company believes that the
unrealized losses at June 30, 2010, were temporary, and as such,
were recorded as a component of accumulated other comprehensive
income, net of tax.
Total liabilities increased to $1.8 billion at June 30, 2010,
from $1.6 billion at December 31, 2009. The increase was
primarily attributable to an increase in borrowings of $76.9
million, or 27.5%, an increase in deposits of $63.8 million, or
4.8%, and an increase of $55.9 million in amounts due to securities
brokers over the same time period. The increase in borrowings
was primarily the result of the Company increasing longer-term
borrowings, taking advantage of, and locking in, low interest
rates, partially offset by maturities during the six months ended
June 30, 2010. The increase in deposits for the six months
ended June 30, 2010, was due in part to an increase of $31.9
million in short-term certificates of deposit originated through
the CDARS® Network. The Company utilizes this funding supply
as a cost effective alternative to other short-term funding
sources. In addition, money market deposits, transaction
accounts, and savings increased $52.9 million, $2.9 million, and
$2.0 million, respectively, from December 31, 2009 to June 30,
2010. These increases were partially offset by a decrease of
$25.9 million in certificates of deposit (originated by the Bank)
over the same time period. The Company continues to focus its
marketing and pricing of its products which it believes promotes
longer-term customer relationships. The increase in due to
securities brokers was the result of securities purchases occurring
prior to June 30, 2010, and settling after the quarter end.
Total stockholders' equity increased to $399.7 million at June
30, 2010, from $391.5 million at December 31, 2009. The
increase was primarily attributable to net income of $7.6 million
for the six months ended June 30, 2010, and an increase in
accumulated other comprehensive income of $5.3 million. A
decrease in market interest rates increased the estimated fair
value of our securities available for sale. The increase in
stockholders' equity also was due to a $1.9 million increase in
additional paid-in capital primarily related to the recognition of
compensation expense associated with equity awards. These
increases were partially offset by $5.2 million in stock
repurchases, and the payment of approximately $1.6 million in cash
dividends for the six months ended June 30, 2010. On June 4,
2010, in connection with the Company's announcement that it intends
to convert to a fully public company, the Board of Directors
terminated its previously announced stock repurchase
program. Since inception of the program, the Company has
purchased 2,083,934 shares of common stock at an average cost of
$11.99 per share.
Northfield Bank's (the Company's wholly-owned subsidiary) Tier 1
(core) capital ratio was approximately 13.48%, at June 30,
2010. The Bank's total risk-based capital ratio was
approximately 27.70% at the same date. These ratios continue
to significantly exceed the required regulatory capital ratios
necessary to be considered "well capitalized" under current federal
capital regulations.
Asset Quality
Nonperforming loans totaled $51.5 million (6.7% of total loans)
at June 30, 2010, as compared to $50.0 million (6.8% of total
loans) at March 31, 2010, $41.8 million (5.7% of total loans) at
December 31, 2009, $35.7 million (5.4% of total loans) at September
30, 2009, and $31.0 million (4.7% of total loans) at June 30,
2009. The following table also shows, for the same dates,
troubled debt restructurings on which interest is accruing, and
accruing loans delinquent 30 to 89 days (dollars in thousands).
(in thousands) |
|
|
|
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
2010 |
2010 |
2009 |
2009 |
2009 |
Non-accruing loans |
$34,007 |
31,248 |
30,914 |
19,232 |
16,016 |
Non-accruing loans subject to restructuring
agreements |
17,417 |
13,090 |
10,717 |
11,003 |
11,494 |
Total non-accruing loans |
51,424 |
44,338 |
41,631 |
30,235 |
27,510 |
Loans 90 days or more past due and still
accruing |
77 |
5,710 |
191 |
5,487 |
3,483 |
Total non-performing loans |
51,501 |
50,048 |
41,822 |
35,722 |
30,993 |
Other real estate owned |
1,362 |
1,533 |
1,938 |
933 |
993 |
Total non-performing assets |
$52,863 |
51,581 |
43,760 |
36,655 |
31,986 |
|
|
|
|
|
|
Loans subject to restructuring agreements and
still accruing |
$10,708 |
8,817 |
7,250 |
7,258 |
6,838 |
|
|
|
|
|
|
Accruing loans 30 to 89 days delinquent |
$30,619 |
38,371 |
28,283 |
35,466 |
33,290 |
Total non-accruing loans increased $7.1 million, to $51.4
million at June 30, 2010, from $44.3 million at March 31,
2010. This increase was attributable to the following loans
being placed on non-accrual status during the quarter ended June
30, 2010: $7.9 million of commercial real estate loans, $550,000 of
construction and land loans, $381,000 of commercial and industrial
loans, $202,000 of one-to-four family residential loans, and
$119,000 of home equity loans. The above increases in
non-accruing loans during the quarter ended June 30, 2010 are net
of charge-offs of $348,000, and have $181,000 in specific reserves
allocated to them at June 30, 2010. These increases were
partially offset by payoffs of a $557,000 multifamily loan and a
$262,000 one-to-four family residential loan, coupled with
principal paydowns of approximately $1.2 million. At June 30,
2010, $22.4 million, or 79.7% of loans subject to restructuring
agreements (accruing and non-accruing) were performing in
accordance with their restructured terms.
Loans 90 days or more past due and still accruing interest
decreased to $77,000 from $5.7 million at March 31, 2010. The
majority of the decrease was due to loans being refinanced by the
Company to permanent real estate mortgage loans in accordance with
our current underwriting standards.
Generally, loans are placed on non-accrual status when they
become 90 days or more delinquent, and remain on non-accrual status
until they are brought current, have six months of performance
under the loan terms, and factors indicating reasonable doubt about
the timely collection of payments no longer exist. Therefore,
loans may be current in accordance with their loan terms, or may be
less than 90 days delinquent, and still be on a non-accruing
status.
The following tables detail the delinquency status of
non-accruing loans at June 30, 2010 and December 31, 2009 (dollars
in thousands).
|
June 30,
2010 |
|
Days Past Due |
Real estate loans: |
0 to 29 |
30 to 89 |
90 or more |
Total |
Commercial |
$7,592 |
10,344 |
22,468 |
40,404 |
One -to- four family
residential |
1,362 |
255 |
501 |
2,118 |
Construction and land |
4,759 |
-- |
873 |
5,632 |
Multifamily |
-- |
516 |
1,426 |
1,942 |
Home equity and lines of
credit |
-- |
-- |
181 |
181 |
Commercial and industrial loans |
-- |
281 |
789 |
1,070 |
Insurance premium loans |
-- |
-- |
77 |
77 |
Total non-accruing loans |
$13,713 |
11,396 |
26,315 |
51,424 |
|
December 31,
2009 |
|
Days Past Due |
Real estate loans: |
0 to 29 |
30 to 89 |
90 or more |
Total |
Commercial |
$2,585 |
10,480 |
15,737 |
28,802 |
One -to- four family
residential |
-- |
392 |
1,674 |
2,066 |
Construction and land |
5,864 |
-- |
979 |
6,843 |
Multifamily |
-- |
530 |
1,589 |
2,119 |
Home equity and lines of
credit |
62 |
-- |
-- |
62 |
Commercial and industrial loans |
1,470 |
-- |
269 |
1,739 |
Total non-accruing loans |
$9,981 |
11,402 |
20,248 |
41,631 |
Loans 30 to 89 days delinquent and on accrual status at June 30,
2010 totaled $30.6 million, a decrease of $7.8 million, from the
March 31, 2010 balance of $38.4 million. Included in this
category at June 30, 2010 were $10.9 million of commercial real
estate loans, $8.1 million of multifamily loans, $4.7 million of
one-to-four family loans, and $4.2 million of construction and land
loans.
Other real estate owned decreased $171,000, to $1.4 million at
June 30, 2010 from $1.5 million at March 31, 2010. This
decrease was primarily due to sales of other real estate owned
during the quarter ended June 30, 2010.
Results of Operations
Net income for the quarter and six months ended June 30, 2010,
was $4.2 million and $7.6 million, respectively, as compared to
$2.1 million and $4.9 million for the quarter and six months ended
June 30, 2009, respectively.
Net interest income increased $2.1 million, or 15.0%, due
primarily to average interest earning assets increasing $255.4
million, or 14.8%, with net interest margin remaining flat at 3.23%
for the quarter ended June 30, 2010 compared to the quarter ended
June 30, 2009. The average yield earned on interest earning
assets decreased 43 basis points, or 8.8%, to 4.47% for the quarter
ended June 30, 2010, compared to 4.90% for the quarter ended June
30, 2009. This change was offset by a 64 basis point decrease
in the average rate paid on interest-bearing liabilities over the
comparable periods. The average yield earned on interest
earning assets and net interest margin were positively affected by
interest income recorded on non-accrual loans on a cash
basis. The loan portfolio has a weighted average coupon rate
of approximately 6.16% at June 30, 2010. The general decline
in yields was due to the overall low interest rate
environment. The increase in average interest earning assets
was due primarily to an increase in average loans outstanding, of
$117.4 million, and other securities of $188.1 million, partially
offset by decreases in mortgage-backed securities and
interest-earning assets in other financial institutions. Other
securities consist primarily of investment-grade corporate bonds,
and government-sponsored enterprise bonds.
Non-interest income increased $342,000, or 22.4%, to $1.9
million for the quarter ended June 30, 2010, as compared to $1.5
million for the quarter ended June 30, 2009, primarily as a result
of an increase of $236,000 in gain on securities transactions,
net. The Company recognized $530,000 in gains on securities
transactions during the quarter ended June 30, 2010, as compared to
$294,000 in gains on securities transactions during the quarter
ended June 30, 2009. Securities gains in the second quarter of
2010 included gross realized gains of $785,000 on the sale of
mortgage-backed securities, partially offset by securities losses
of $255,000 related to the Company's trading portfolio. The
Company recognized $294,000 of securities gains related to the
Company's trading portfolio during the quarter ended June 30,
2009. The trading portfolio is utilized to fund the Company's
deferred compensation obligation to certain employees and directors
of the Company. 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 non-interest expense,
reflecting the change in the Company's obligations under the
plan. The Company does not expect to continue to recognize the
level of gains on the sale of available for sale securities that it
recognized this quarter. The Company also recognized
approximately $197,000 of income on the sale of fixed assets during
the quarter ended June 30, 2010.
Net income for the quarter ended June 30, 2010, also was
positively affected by a decrease of $604,000 in non-interest
expense, which was primarily attributable to a decrease of $608,000
in FDIC insurance expense. FDIC insurance expense for the
quarter ended June 30, 2009 included $770,000 related to an FDIC
special assessment.
The provision for loan losses was $2.8 million for the quarter
ended June 30, 2010; a decrease of $301,000, or 9.7%, from the $3.1
million provision recorded in the quarter ended June 30,
2009. The decrease in the provision for loan losses in the
current quarter was due primarily to the change in the composition
of our loan portfolio, partially offset by increases in general
loss factors. These increases in the general loss factors
utilized in management's estimate of credit losses inherent in the
loan portfolio were a result of declines in collateral values
supporting our loans and further deterioration of our local
economy. During the quarter ended June 30, 2010, we continued
our emphasis of originating multifamily real estate loans which
resulted in less growth in commercial real estate loans as compared
to the quarter ended June 30, 2009. Commercial real estate
loans generally have greater credit risk than multifamily real
estate loans. Net charge-offs for the quarter ended June 30,
2010, were $822,000, as compared to $854,000 for the quarter ended
June 30, 2009.
The Company recorded income tax expense of $2.3 million and $1.1
million for the quarter ended June 30, 2010 and 2009,
respectively. The effective tax rate for the quarter ended
June 30, 2010, was 35.9%, as compared to 33.7% for the quarter
ended June 30, 2009. The increase in the effective tax rate
was the result of a higher level of taxable income in 2010 as
compared to 2009.
Net income increased $2.7 million, or 55.8%, for the six months
ended June 30, 2010, as compared to the six months ended June 30,
2009, due primarily to an increase of $3.9 million in net interest
income, and an increase of $1.1 million in non-interest income,
partially offset by an increase of $735,000 in non-interest expense
and an increase of $1.5 million in income tax expense over the same
time period.
Net interest income increased $3.9 million, or 14.5%, due
primarily to interest earning assets increasing $256.9 million, or
15.1%, partially offset by a decrease in the net interest margin of
one basis point, or 0.3%, over the prior year comparable
period. The net interest margin decreased for the six months
ended June 30, 2010, as the average yield earned on interest
earning assets decreased, which was partially offset by a decrease
in the average rate paid on interest-bearing liabilities. The
general decline in yields was due to the overall low interest rate
environment. The increase in average interest earning assets
was due primarily to an increase in average loans outstanding of
$125.2 million, and other securities of $191.3 million, being
partially offset by decreases in mortgage-backed securities, and
interest-earning assets in other financial institutions. Other
securities consist primarily of investment-grade corporate bonds,
and government-sponsored enterprise bonds.
Non-interest income increased $1.1 million, or 44.0%, primarily
as a result of an increase of $1.0 million in gain on securities
transactions, net for the six months ended June 30, 2010 as
compared to the six months ended June 30, 2009. The Company
recognized $1.1 million in gains on securities transactions during
the six months ended June 30, 2010, as compared to $140,000 in
gains on securities transactions during the six months ended June
30, 2009. Securities gains during the six months ended June
30, 2010 included gross realized gains of $1.0 million on the sale
of mortgage-backed securities, coupled with securities gains of
$90,000 related to the Company's trading portfolio. During the
six months ended June 30, 2009, securities gains included gross
realized gains of $7,000 on the sale of mortgage-backed securities,
coupled with securities gains of $133,000 related to the Company's
trading portfolio. The Company also recognized approximately
$197,000 of income on the sale of fixed assets during the six
months ended June 30, 2010.
Net income for the six months ended June 30, 2010, was
negatively affected by an increase in non-interest expense of
$735,000, or 4.4%. The increase in non-interest expense during
the six months ended June 30, 2010 was primarily attributable to an
increase of $910,000 in compensation and employee benefits expense,
which resulted primarily from increases in full time equivalent
employees primarily related to our insurance premium finance
division formed in October 2009, higher health care costs, and to a
lesser extent, salary adjustments effective January 1,
2010. In addition, other non-interest expense also increased
$589,000, or 28.2%, from the six months ended June 30, 2009 to the
six months ended June 30, 2010. This increase is primarily
attributable to an insurance premium finance division license
agreement. These increases in non-interest expense were
partially offset by a decrease of $592,000 in FDIC insurance
expense over the same time period. FDIC insurance expense for
the six months ended June 30, 2009 included $770,000 related to the
FDIC's special assessment.
The provision for loan losses remained flat at $4.7 million for
the six months ended June 30, 2010 and 2009. The primary
reason for the provision for loan losses remaining flat was due to
increases in the general loss factors utilized in management's
estimate of credit losses inherent in the loan portfolio which
resulted from declines in collateral values supporting our loans
and further deterioration of our local economy, being offset by the
effect of lower levels of growth in non-performing loans and a
decline in loan growth for the six months ended June 30, 2010
compared to the six months ended June 30, 2009. Furthermore,
during the six months ended June 30, 2010, we continued our
emphasis of originating multifamily real estate loans which
resulted in less growth in commercial real estate loans as compared
to the six months ended June 30, 2009. Commercial real estate
loans generally have greater credit risk than multifamily real
estate loans. Net charge-offs for the six months ended June
30, 2010, were $1.0 million, as compared to $1.4 million for the
six months ended June 30, 2009.
The Company recorded income tax expense of $4.2 million and $2.6
million for the six months ended June 30, 2010 and 2009,
respectively. The effective tax rate for the six months ended
June 30, 2010, was 35.6%, as compared to 35.3% for the six months
ended June 30, 2009. The increase in the effective tax rate
was the result of a higher percentage of pre-tax income being
subject to taxation in 2010, as compared to 2009.
About Northfield Bank
Northfield Bank, founded in 1887, operates 19 full service
banking offices in Staten Island and Brooklyn, New York and
Middlesex 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. 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.
NORTHFIELD BANCORP,
INC. |
SELECTED CONSOLIDATED FINANCIAL
AND OTHER DATA |
(Dollars in thousands, except
per share amounts) (unaudited) |
|
|
|
|
At |
At |
|
June 30, 2010 |
December 31,
2009 |
Selected Financial Condition
Data: |
|
|
Total assets |
$ 2,208,165 |
$ 2,002,274 |
Cash and cash equivalents |
28,862 |
42,544 |
Trading securities |
3,515 |
3,403 |
Securities available for sale, at estimated
fair value |
1,301,727 |
1,131,803 |
Securities held to maturity |
5,830 |
6,740 |
Loans held for investment, net |
772,909 |
729,269 |
Allowance for loan losses |
(19,122) |
(15,414) |
Net loans held for investment |
753,787 |
713,855 |
Non-performing loans(1) |
51,501 |
41,822 |
Other real estate owned |
1,362 |
1,938 |
Bank owned life insurance |
54,688 |
43,751 |
Federal Home Loan Bank of New York stock, at
cost |
8,119 |
6,421 |
|
|
|
Borrowed funds |
356,333 |
279,424 |
Deposits |
1,380,695 |
1,316,885 |
Total liabilities |
1,808,426 |
1,610,734 |
Total stockholders' equity |
$ 399,739 |
$ 391,540 |
|
|
|
|
Quarter
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2010 |
2009 |
2010 |
2009 |
Selected Operating
Data: |
|
|
|
|
Interest income |
$ 22,032 |
$ 21,013 |
$ 43,039 |
$ 41,495 |
Interest expense |
6,115 |
7,176 |
12,573 |
14,897 |
Net interest income before provision for loan
losses |
15,917 |
13,837 |
30,466 |
26,598 |
Provision for loan losses |
2,798 |
3,099 |
4,728 |
4,743 |
Net interest income after provision for loan
losses |
13,119 |
10,738 |
25,738 |
21,855 |
Non-interest income |
1,866 |
1,524 |
3,589 |
2,493 |
Non-interest expense |
8,457 |
9,061 |
17,578 |
16,843 |
Income before income tax expense |
6,528 |
3,201 |
11,749 |
7,505 |
Income tax expense |
2,342 |
1,079 |
4,182 |
2,648 |
Net income |
$ 4,186 |
$ 2,122 |
$ 7,567 |
$ 4,857 |
|
|
|
|
|
Basic and diluted earnings per share (2) |
$ 0.10 |
$ 0.05 |
$ 0.18 |
$ 0.11 |
|
|
NORTHFIELD BANCORP,
INC. |
SELECTED CONSOLIDATED FINANCIAL
AND OTHER DATA |
(Dollars in thousands, except
per share amounts) (unaudited) |
|
|
|
|
|
|
At or For the
Three |
At or For the
Six |
|
Months
Ended |
Months
Ended |
|
June
30, |
June
30, |
|
2010 |
2009 |
2010 |
2009 |
Selected Financial
Ratios: |
|
|
|
|
Performance Ratios(3): |
|
|
|
|
Return on assets (ratio of net
income to average total assets) |
0.80% |
0.47% |
0.74% |
0.55% |
Return on equity (ratio of net
income to average equity) |
4.23 |
2.18 |
3.86 |
2.52 |
Average equity to average total
assets |
19.01 |
21.55 |
19.11 |
21.70 |
Interest rate spread |
2.91 |
2.70 |
2.80 |
2.59 |
Net interest margin |
3.23 |
3.23 |
3.14 |
3.15 |
Efficiency ratio(4) |
47.56 |
58.99 |
51.62 |
57.90 |
Non-interest expense to average
total assets |
1.62 |
2.00 |
1.71 |
1.89 |
Average interest-earning assets
to average interest-bearing liabilities |
125.70 |
131.74 |
125.97 |
131.77 |
Asset Quality Ratios: |
|
|
|
|
Non-performing assets to total
assets |
2.39 |
1.70 |
2.39 |
1.70 |
Non-performing loans to total
loans held for investment, net |
6.66 |
4.71 |
6.66 |
4.71 |
Allowance for loan losses to
non-performing loans |
37.13 |
38.95 |
37.13 |
38.95 |
Allowance for loan losses to
total loans |
2.47 |
1.84 |
2.47 |
1.84 |
Annualized net charge-offs to
total average loans |
0.44 |
0.54 |
0.28 |
0.47 |
Provision for loan losses as a
multiple of net charge-offs |
3.40X |
3.63X |
4.64X |
3.28X |
|
|
|
|
|
(1) Non-performing loans consist
of non-accruing loans and loans 90 days or more past due and still
accruing, and are included in loans held-for-investment, net. |
(2) Basic net income per common
share is calculated based on 41,417,662 and 42,625,593 average
shares outstanding for the three months ended June 30, 2010, and
June 30, 2009, respectively. Basic net income per common share
is calculated based on 41,462,961 and 42,856,503 average shares
outstanding for the six months ended June 30, 2010, and June 30,
2009, respectively. Diluted earnings per share is calculated
based on 41,783,730 and 42,719,665 average shares outstanding
for the three months ended June 30, 2010 and June 30, 2009,
respectively. Diluted earnings per share is calculated based
on 41,803,306 and 42,911,078 average shares outstanding for the six
months ended June 30, 2010 and June 30, 2009,
respectively. |
(3) Annualized when
appropriate. |
(4) The efficiency ratio
represents non-interest expense divided by the sum of net interest
income and non-interest income. |
|
|
NORTHFIELD BANCORP,
INC. |
ANALYSIS OF NET INTEREST
INCOME |
(Dollars in thousands) |
|
For the Quarter
Ended June 30, |
|
2010 |
2009 |
|
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
Loans |
$757,240 |
$12,098 |
6.41% |
$639,852 |
$9,253 |
5.80% |
Mortgage-backed
securities |
888,469 |
8,432 |
3.81 |
913,595 |
10,924 |
4.80 |
Other securities |
255,392 |
1,379 |
2.17 |
67,328 |
522 |
3.11 |
Federal Home Loan Bank of New
York stock |
6,475 |
63 |
3.90 |
8,046 |
107 |
5.33 |
Interest-earning deposits in
financial institutions |
68,078 |
60 |
0.35 |
91,442 |
207 |
0.91 |
Total interest-earning
assets |
1,975,654 |
22,032 |
4.47 |
1,720,263 |
21,013 |
4.90 |
Non-interest-earning assets |
112,605 |
|
|
94,215 |
|
|
Total assets |
2,088,259 |
|
|
1,814,478 |
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Savings, NOW, and money market
accounts |
670,371 |
1,265 |
0.76 |
552,512 |
1,468 |
1.07 |
Certificates of
deposit |
580,565 |
2,117 |
1.46 |
460,785 |
3,118 |
2.71 |
Total interest-bearing
deposits |
1,250,936 |
3,382 |
1.08 |
1,013,297 |
4,586 |
1.82 |
Borrowed funds |
320,783 |
2,733 |
3.42 |
292,464 |
2,590 |
3.55 |
Total
interest-bearing liabilities |
1,571,719 |
6,115 |
1.56 |
1,305,761 |
7,176 |
2.20 |
Non-interest bearing deposit accounts |
113,011 |
|
|
99,388 |
|
|
Accrued expenses and other
liabilities |
6,457 |
|
|
18,300 |
|
|
Total liabilities |
1,691,187 |
|
|
1,423,449 |
|
|
Stockholders' equity |
397,072 |
|
|
391,029 |
|
|
Total liabilities and
stockholders' equity |
2,088,259 |
|
|
1,814,478 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
$15,917 |
|
|
$13,837 |
|
Net interest rate spread (2) |
|
|
2.91 |
|
|
2.70 |
Net interest-earning assets (3) |
$403,935 |
|
|
$414,502 |
|
|
Net interest margin (4) |
|
|
3.23% |
|
|
3.23% |
Average interest-earning
assets to interest-bearing liabilities |
|
|
125.70 |
|
|
131.74 |
|
|
|
|
|
|
|
(1) Average yields and
rates for the three months ended June 30, 2010, and 2009 are
annualized. |
(2) 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. |
(3) Net interest-earning
assets represent total interest-earning assets less total
interest-bearing liabilities. |
(4) Net interest margin
represents net interest income divided by average total
interest-earning assets. |
NORTHFIELD BANCORP,
INC. |
ANALYSIS OF NET INTEREST
INCOME |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
For the Six
Months Ended June 30, |
|
2010 |
2009 |
|
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
Loans |
$745,891 |
$22,391 |
6.05% |
$620,655 |
$17,824 |
5.79% |
Mortgage-backed
securities |
898,788 |
17,613 |
3.95 |
928,689 |
22,038 |
4.79 |
Other securities |
241,014 |
2,763 |
2.31 |
49,733 |
804 |
3.26 |
Federal Home Loan Bank of New
York stock |
6,272 |
158 |
5.08 |
7,982 |
187 |
4.72 |
Interest-earning deposits in
financial institutions |
66,826 |
114 |
0.34 |
94,817 |
642 |
1.37 |
Total interest-earning
assets |
1,958,791 |
43,039 |
4.43 |
1,701,876 |
41,495 |
4.92 |
Non-interest-earning assets |
111,381 |
|
|
90,538 |
|
|
Total assets |
2,070,172 |
|
|
1,792,414 |
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Savings, NOW, and money market
accounts |
654,026 |
2,685 |
0.83 |
538,278 |
3,104 |
1.16 |
Certificates of
deposit |
584,598 |
4,649 |
1.60 |
454,806 |
6,439 |
2.86 |
Total interest-bearing
deposits |
1,238,624 |
7,334 |
1.19 |
993,084 |
9,543 |
1.94 |
Borrowed funds |
316,315 |
5,239 |
3.34 |
298,455 |
5,354 |
3.62 |
Total
interest-bearing liabilities |
1,554,939 |
12,573 |
1.63 |
1,291,539 |
14,897 |
2.33 |
Non-interest bearing deposit accounts |
111,335 |
|
|
96,801 |
|
|
Accrued expenses and other
liabilities |
8,278 |
|
|
15,076 |
|
|
Total liabilities |
1,674,552 |
|
|
1,403,416 |
|
|
Stockholders' equity |
395,620 |
|
|
388,998 |
|
|
Total liabilities and
stockholders' equity |
2,070,172 |
|
|
1,792,414 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
$30,466 |
|
|
$26,598 |
|
Net interest rate spread (2) |
|
|
2.80 |
|
|
2.59 |
Net interest-earning assets (3) |
$403,852 |
|
|
$410,337 |
|
|
Net interest margin (4) |
|
|
3.14% |
|
|
3.15% |
Average interest-earning assets
to interest-bearing liabilities |
|
|
125.97 |
|
|
131.77 |
|
|
|
|
|
|
|
(1) Average yields and
rates for the six months ended June 30, 2010 and 2009, are
annualized. |
(2) 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. |
(3) Net interest-earning
assets represent total interest-earning assets less total
interest-bearing liabilities. |
(4) Net interest margin
represents net interest income divided by average total
interest-earning assets. |
CONTACT: Northfield Bancorp, Inc.
Steven M. Klein, Chief Financial Officer
(732) 499-7200 ext. 2510
Northfield Bancorp (NASDAQ:NFBK)
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