Notable Items Include:
- Net Income of $2.4 Million, or $0.06 Per Share, for the
Quarter, Which Includes an After-Tax Charge of $1.2 Million, or
$.03 per Share, Related to Costs Associated With the Postponed
Second-Step Offering, and a Tax Benefit of $738,000, or $.02 Per
Share, Related to Recent Tax Law Changes
- Net Income of $10.0 Million, or $0.24 Per Share, for
the Nine Months of 2010, as Compared to $8.1 Million, or $0.19 Per
Share in 2009
- Increase of 6.1% and 11.5% in Net Interest Income for
the Quarter and Nine Months Ended September 30, 2010,
Respectively
- Total Loans Increased 10.1% Year to Date
- Continued Strengthening of Loan Loss Reserves –
Allowance for Loan Losses Increases 35.8%, Year to Date, to $20.9
Million, Representing 2.61% of Total Loans at September 30,
2010
- Nonperforming Loans Total $55.4 Million Compared to
$51.5 Million at June 30, 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 $0.06 and $0.08 for the quarters ended
September 30, 2010 and 2009, respectively, and basic and diluted
earnings per share of $0.24 and $0.19 for the nine months ended
September 30, 2010 and 2009, respectively. Net income for the
quarter and nine months ended September 30, 2010 included an
after-tax charge of $1.2 million, or $0.03 per share, for costs
related to the Company's postponed second-step stock offering. In
addition, net income for the quarter and nine months ended
September 30, 2010 was positively affected by the reversal of
deferred tax liabilities related to state bad debt reserves of
approximately $738,000, or $0.02 per share.
Commenting on the third quarter results, John W. Alexander, the
Company's Chairman and Chief Executive Officer noted, "Although
market conditions in the third quarter were not conducive to us
completing our second-step stock offering, our capital continues to
significantly exceed that required to be considered "well
capitalized" for regulatory purposes, and we remain focused on our
long-term strategic plan of effectively deploying capital and
managing risk to generate solid earnings and returns for our
stockholders."
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 November 24, 2010, to stockholders of
record as of November 10, 2010."
Financial Condition
Total assets increased $191.6 million, or 9.6%, to $2.2 billion
at September 30, 2010, from $2.0 billion at December 31, 2009. The
increase was primarily attributable to increases in securities of
$100.9 million and loans held for investment, net, of $73.3
million. In addition, bank owned life insurance increased $30.3
million, primarily resulting from the purchase of $28.8 million of
insurance policies during the nine months ended September 30, 2010,
coupled with $1.5 million of income earned on bank owned life
insurance for the nine months ended September 30, 2010.
Loans held for investment, net, totaled $802.6 million at
September 30, 2010, as compared to $729.3 million at December 31,
2009. The increase was primarily in multi-family real estate
loans, which increased $66.8 million, or 37.4%, to $245.2 million
at September 30, 2010, from $178.4 million at December 31,
2009. Commercial real estate loans increased $13.3 million, or
4.1%, to $341.1 million, insurance premium loans increased $9.1
million, or 22.6%, to $49.5 million, and home equity loans
increased $3.6 million, or 13.8%, to $29.7 at September 30,
2010. These increases were partially offset by decreases in
residential, land and construction, and commercial and industrial
loans.
The Company's securities portfolio totaled $1.2 billion at
September 30, 2010, as compared to $1.1 billion at December 31,
2009, an increase of $100.9 million, or 8.8%. At September 30,
2010, $904.7 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." The private label securities had an amortized
cost of $109.4 million and an estimated fair value of $114.2
million at September 30, 2010. These private label securities
were in a net unrealized gain position of $4.8 million at September
30, 2010, consisting of gross unrealized gains of $5.9 million and
gross unrealized losses of $1.1 million.
Of the $114.2 million of private label securities, two
securities with an estimated fair value of $10.5 million (amortized
cost of $11.6 million) were rated less than AAA at September 30,
2010. Of the two securities, one had an estimated fair value
of $4.5 million (amortized cost of $4.8 million) and was rated CC,
and the other had an estimated fair value of $5.9 million
(amortized cost of $6.7 million) and was rated Caa2. 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
securities. As a result of management's evaluation of these
securities, the Company recognized other-than-temporary impairment
of $962,000 on the $5.9 million security that was rated Caa2 for
the quarter ended September 30, 2010. Since management does
not have the intent to sell the security, and believes it is more
likely than not that the Company will not be required to sell the
security, before its anticipated recovery, the credit component of
$154,000 was recognized in earnings for the quarter ended September
30, 2010, and the non-credit component of $808,000 was recorded as
a component of accumulated other comprehensive income, net of
tax. All other losses within the Company's investment
portfolio were deemed to be temporary at September 30, 2010, and as
such, were recorded as a component of accumulated other
comprehensive income, net of tax.
Total liabilities increased to $1.8 billion at September 30,
2010, from $1.6 billion at December 31, 2009. The increase was
primarily attributable to an increase in deposits of $95.5 million,
or 7.3%, an increase in borrowings of $62.7 million, or 22.4%, and
an increase of $20.0 million in amounts due to securities
brokers. The increase in deposits for the nine months ended
September 30, 2010, was due in part to an increase of $52.5 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, and transaction accounts increased
$78.5 million and $34.8 million, respectively, from December 31,
2009 to September 30, 2010. These increases were partially
offset by a decrease of $6.7 million in savings and a decrease of
$63.6 million in certificates of deposit (issued 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 borrowings
was primarily the result of the Company increasing longer-term
borrowings, taking advantage of, and locking in, lower interest
rates, partially offset by maturities during the nine months ended
September 30, 2010. The increase in due to securities brokers
was the result of securities purchases occurring prior to September
30, 2010, and settling after the quarter end.
Total stockholders' equity increased to $402.6 million at
September 30, 2010, from $391.5 million at December 31,
2009. The increase was primarily attributable to net income of
$10.0 million for the nine months ended September 30, 2010, and an
increase in accumulated other comprehensive income of $5.7
million. Generally, as market interest rates decrease, the
estimated fair value of our securities available for sale
increases. The increase in stockholders' equity also was due
to a $2.6 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 $2.4
million in cash dividends for the nine months ended September 30,
2010.
Northfield Bank's (the Company's wholly-owned subsidiary) Tier 1
(core) capital ratio was approximately 13.67%, at September 30,
2010. The Bank's total risk-based capital ratio was
approximately 27.64% 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 $55.4 million (6.9% of total loans)
at September 30, 2010, as compared to $51.5 million (6.7% of total
loans) at June 30, 2010, $50.0 million (6.8% of total loans) at
March 31, 2010, $41.8 million (5.7% of total loans) at December 31,
2009, and $35.7 million (5.4% of total loans) at September 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).
| |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
| |
2010 |
2010 |
2010 |
2009 |
2009 |
| Non-accruing loans |
$37,882 |
34,007 |
31,248 |
30,914 |
19,232 |
| Non-accruing loans subject to restructuring
agreements |
17,261 |
17,417 |
13,090 |
10,717 |
11,003 |
| Total non-accruing loans |
55,143 |
51,424 |
44,338 |
41,631 |
30,235 |
| Loans 90 days or more past due and still
accruing |
248 |
77 |
5,710 |
191 |
5,487 |
| Total non-performing loans |
55,391 |
51,501 |
50,048 |
41,822 |
35,722 |
| Other real estate owned |
171 |
1,362 |
1,533 |
1,938 |
933 |
| Total non-performing assets |
$55,562 |
52,863 |
51,581 |
43,760 |
36,655 |
| |
|
|
|
|
|
| Loans subject to restructuring agreements and
still accruing |
$11,218 |
10,708 |
8,817 |
7,250 |
7,258 |
| |
|
|
|
|
|
| Accruing loans 30 to 89 days delinquent |
$35,190 |
30,619 |
38,371 |
28,283 |
35,466 |
Total non-accruing loans increased $3.7 million, to $55.1
million at September 30, 2010, from $51.4 million at June 30,
2010. This increase was primarily attributable to the
following loan types being placed on non-accrual status during the
quarter ended September 30, 2010: $3.1 million of multifamily
loans, $2.0 million of commercial real estate loans, $456,000 of
commercial and industrial loans, and $199,000 of one-to-four family
residential loans. The above increases in non-accruing loans
during the quarter ended September 30, 2010, are net of charge-offs
of $1.5 million, and have $435,000 in specific reserves allocated
to them at September 30, 2010. These increases were partially
offset by one relationship, consisting of $963,000 of one-to-four
family residential loans, and a $654,000 land loan, being returned
to accrual status, coupled with payoffs of $41,000 on a one-to-four
family residential loan, and principal paydowns of approximately
$373,000. At September 30, 2010, $23.6 million, or 83.0% of
loans subject to restructuring agreements were performing in
accordance with their restructured terms. All of the $11.2
million of accruing troubled debt restructurings, and $12.4 million
of the $17.3 million of non-accruing troubled debt restructurings,
were performing in accordance with their restructured
terms.
Loans 90 days or more past due and still accruing interest
increased to $248,000 from $77,000 at June 30, 2010. The
increase is primarily due to one construction loan that is
considered well secured and in the process of collection.
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 a minimum of 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 September 30, 2010 and December 31, 2009
(dollars in thousands).
| |
|
|
|
|
| |
September 30, 2010 |
| |
Days Past Due |
|
| Real estate loans: |
0 to 29 |
30 to 89 |
90 or more |
Total |
| Commercial |
$8,789 |
11,681 |
21,468 |
41,938 |
| One -to- four family
residential |
136 |
576 |
594 |
1,306 |
| Construction and land |
4,036 |
-- |
875 |
4,911 |
| Multifamily |
423 |
511 |
4,488 |
5,422 |
| Home equity and lines of credit |
-- |
-- |
181 |
181 |
| Commercial and industrial loans |
-- |
274 |
1,057 |
1,331 |
| Insurance premium loans |
-- |
-- |
54 |
54 |
| Total non-accruing loans |
$13,384 |
13,042 |
28,717 |
55,143 |
| |
|
|
|
|
| |
|
| |
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
September 30, 2010, totaled $35.2 million, an increase of $4.6
million, from the June 30, 2010, balance of $30.6 million. The
following table sets forth delinquencies for accruing loans by type
and by amount at September 30, 2010 (dollars in
thousands).
| |
|
|
|
| |
Delinquent Accruing
Loans |
| |
30 to 89 Days |
90 Days and Over |
Total |
| Real estate loans: |
|
|
|
| Commercial |
$ 13,103 |
$ -- |
$ 13,103 |
| One- to four-family residential |
6,424 |
-- |
6,424 |
| Construction and land |
6,451 |
235 |
6,686 |
| Multifamily |
6,853 |
-- |
6,853 |
| Home equity and lines of credit |
318 |
-- |
318 |
| Commercial and industrial loans |
1,286 |
13 |
1,299 |
| Insurance premium loans |
646 |
-- |
646 |
| Other loans |
109 |
-- |
109 |
| Total |
$ 35,190 |
$ 248 |
$ 35,438 |
Non-accruing loans subject to restructuring agreements totaled
$17.3 million and $10.7 million at September 30, 2010 and December
31, 2009, respectively. During the nine months ended September
30, 2010, we entered into eight troubled debt restructuring
agreements, of which $4.0 million and $8.3 million were classified
as accruing and non-accruing, respectively, at September 30,
2010. The following table sets forth the amounts and
categories of the troubled debt restructurings by loan type as of
September 30, 2010 and December 31, 2009 (dollars in
thousands).
| |
|
|
|
|
| |
At September 30,
2010 |
At December 31, 2009 |
| |
Non-Accruing |
Accruing |
Non-Accruing |
Accruing |
| Troubled debt restructurings: |
|
|
|
|
| Real estate loans: |
|
|
|
|
| Commercial |
$ 12,213 |
$ 7,895 |
$ 3,960 |
$ 5,499 |
| One- to four-family residential |
-- |
1,750 |
-- |
-- |
| Construction and land |
4,036 |
-- |
5,726 |
1,751 |
| Multifamily |
511 |
1,573 |
530 |
-- |
| Commercial and industrial |
501 |
-- |
501 |
-- |
| Total |
$ 17,261 |
$ 11,218 |
$ 10,717 |
$ 7,250 |
Other real estate owned decreased $1.2 million, to $171,000 at
September 30, 2010, from $1.4 million at June 30, 2010. This
decrease was due to the sale of one property during the quarter
ended September 30, 2010.
Results of Operations
Net income decreased $792,000, or 24.9%, to $2.4 million for the
quarter ended September 30, 2010, as compared to $3.2 million for
the quarter ended September 30, 2009, due primarily to an increase
of $2.7 million in non-interest expense and an increase of $675,000
in provision for loan losses, partially offset by an increase of
$901,000 in net interest income, an increase of $144,000 in
non-interest income, and a decrease of $1.6 million in income tax
expense.
Net interest income increased $901,000, or 6.1%, due primarily
to average interest earning assets increasing $211.8 million, or
11.6%, partially offset by a decrease in the net interest margin of
15 basis points, or 4.7%, for the quarter ended September 30, 2010,
compared to the quarter ended September 30, 2009. The average
yield earned on interest earning assets decreased 53 basis points,
or 11.2%, to 4.21% for the quarter ended September 30, 2010,
compared to 4.74% for the quarter ended September 30,
2009. This change was offset by a 53 basis point decrease in
the average rate paid on interest-bearing liabilities over the
comparable periods from 1.98% to 1.45%. The general decline in
yields was due to the overall low interest rate environment and was
driven by decreases in yields earned on mortgage-backed securities,
as principal repayments were reinvested into lower yielding
securities. The increase in average interest earning assets
was due primarily to an increase in average loans outstanding of
$134.4 million, other securities of $106.9 million, and $35.7
million in mortgage-backed securities, partially offset by
decreases in interest-earning assets in other financial
institutions. Other securities consist primarily of
investment-grade shorter-term corporate bonds, and
government-sponsored enterprise bonds.
Non-interest income increased $144,000, or 10.6%, to $1.5
million for the quarter ended September 30, 2010, as compared to
$1.4 million for the quarter ended September 30, 2009, primarily as
a result of an increase of $125,000 of income earned on bank owned
life insurance, generated by increased cash surrender values,
primarily from $28.8 million in additional bank owned life
insurance purchased during the nine-months ended September 30,
2010.
Non-interest expense increased $2.7 million, or 32.5%, for the
quarter ended September 30, 2010, as compared to the quarter ended
September 30, 2009, due primarily to the expensing of approximately
$1.8 million in costs incurred for the Company's postponed,
second-step stock offering, which costs management believes provide
no meaningful future benefit. The increase in non-interest
expense is also attributable to compensation and employee benefits
expense increasing $346,000, 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. Occupancy expense
increased $214,000, or 19.1%, over the same time period, primarily
due to increases in rent and amortization of leasehold improvements
relating to new branches and the renovation of existing
branches. In addition, other non-interest expense also
increased $385,000, or 37.0%, from the quarter ended September 30,
2009 to the quarter ended September 30, 2010. This increase
was primarily attributable to operating expenses of the insurance
premium finance division.
The provision for loan losses was $3.4 million for the quarter
ended September 30, 2010; an increase of $675,000, or 24.8%, from
the $2.7 million provision recorded in the quarter ended September
30, 2009. The increase in the provision for loan losses in the
current quarter was due primarily to increases in total loans, the
change in the composition of our loan portfolio, and increases in
general loss factors, due primarily to higher levels of charge-offs
experienced in the multifamily loan portfolio. During the
quarter ended September 30, 2010, the Company recorded a $1.2
million charge-off on one non-accruing multifamily loan, based on
the receipt of a current appraisal. Increases in the general
loss factors were also attributable to increases in delinquencies
in the Company's loan portfolio and further deterioration in the
local economy primarily as it relates to commercial real estate
loans. Net charge-offs for the quarter ended September 30,
2010, were $1.6 million, as compared to $600,000 for the quarter
ended September 30, 2009.
The Company recorded income tax expense of $215,000 and $1.8
million for the quarters ended September 30, 2010 and 2009,
respectively. The effective tax rate for the quarter ended
September 30, 2010, was 8.2%, as compared to 36.0% for the quarter
ended September 30, 2009. The decrease in the effective tax
rate was the result of a lower level of pre-tax income being
subject to taxation in 2010 as compared to 2009, and the reversal
of deferred tax liabilities related to state bad debt reserves of
approximately $738,000 resulting from the enactment of State of New
York tax laws during the quarter ended September 30, 2010.
Net income increased $1.9 million, or 23.8%, to $10.0 million
for the nine months ended September 30, 2010, as compared to $8.0
million for the nine months ended September 30, 2009, due primarily
to an increase of $4.8 million in net interest income and an
increase of $1.2 million in non-interest income, partially offset
by an increase of $3.5 million in non-interest expense, and an
increase of $660,000 in provision for loan losses.
Net interest income increased $4.8 million, or 11.5%, due
primarily to interest earning assets increasing $243.3 million, or
13.9%, partially offset by a decrease in the net interest margin of
seven basis points, or 2.2%, over the prior year comparable
period. The net interest margin decreased for the nine months
ended September 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 and was driven by decreases in yields earned on
mortgage-backed securities, as principal repayments were reinvested
into lower yielding securities. The decline in yield on
interest-earning assets was also due to declining yields on other
securities and interest-earning deposits in other financial
institutions. These decreases were partially offset by an
increase in yield earned on loans due primarily to the yield earned
on the Company's insurance premium loan portfolio. The
increase in average interest earning assets was due primarily to an
increase in average loans outstanding of $128.3 million, and other
securities of $162.4 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 $1.2 million, or 32.2%, primarily
as a result of an increase of $1.1 million in gains on securities
transactions, net for the nine months ended September 30, 2010, as
compared to the nine months ended September 30, 2009. The
Company recognized $1.6 million in gains on securities transactions
during the nine months ended September 30, 2010, as compared to
$477,000 in gains on securities transactions during the nine months
ended September 30, 2009. Securities gains during the nine
months ended September 30, 2010, included gross realized gains of
$1.2 million on the sale of mortgage-backed securities, coupled
with securities gains of $397,000 related to the Company's trading
portfolio. During the nine months ended September 30, 2009,
securities gains included gross realized gains of $7,000 on the
sale of mortgage-backed securities, coupled with securities gains
of $470,000 related to the Company's trading portfolio. 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.
Non-interest income also was positively affected by a $191,000,
or 14.6%, increase in income on bank owned life insurance for the
nine months ended September 30, 2010, as compared to the nine
months ended September 30, 2009. The Company also recognized
approximately $197,000 of income on the sale of fixed assets during
the nine months ended September 30, 2010.
Non-interest expense increased $3.5 million, or 13.8%, for the
nine months ended September 30, 2010, as compared to the nine
months ended September 30, 2009, due primarily to the expensing of
approximately $1.8 million in costs incurred on the Company's
postponed, second-step stock offering and an increase of $1.3
million, or 10.0%, in compensation and employee benefits
expense. Compensation and employee benefits expense increased
primarily due to 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. Occupancy
expense increased $400,000, or 12.1%, over the same time period,
primarily due to increases in rent and amortization of leasehold
improvements relating to new branches and the renovation of
existing branches. In addition, other non-interest expense
also increased $974,000, or 31.1%, from the nine months ended
September 30, 2009 to the nine months ended September 30,
2010. This increase is primarily attributable to operating
expenses of the insurance premium finance division. These
increases in non-interest expense were partially offset by a
decrease of $548,000 in FDIC insurance expense over the same time
period. FDIC insurance expense for the nine months ended
September 30, 2009 included $770,000 related to the FDIC's special
assessment.
The provision for loan losses was $8.1 million for the nine
months ended September 30, 2010, an increase of $660,000, or 8.8%,
from the $7.5 million provision recorded for the nine months ended
September 30, 2009. The increase in the provision was due
primarily to increases in total loans, the change in the
composition of our loan portfolio, and increases in general loss
factors, due to higher levels of charge-offs primarily in the
multifamily loan portfolio. The increases in the general loss
factors utilized in management's estimate of credit losses inherent
in the loan portfolio were also the result of continued increases
in delinquencies in the Company's loan portfolio and further
deterioration of the local economy. Net charge-offs for the
nine months ended September 30, 2010, were $2.6 million, as
compared to $2.0 million for the nine months ended September 30,
2009.
The Company recorded income tax expense of $4.4 million for the
nine months ended September 30, 2010 and 2009,
respectively. The effective tax rate for the nine months ended
September 30, 2010, was 30.6%, as compared to 35.6% for the nine
months ended September 30, 2009. The decrease in the effective
tax rate was the result of the reversal of deferred tax liabilities
related to state bad debt reserves of approximately $738,000
resulting from the enactment of new State of New York tax laws
during the quarter ended September 30, 2010.
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 as described in our SEC
filings, including, but not limited to, those related to general
economic conditions, particularly in the market areas in which the
Company operates, competition among depository and other financial
institutions, changes in laws or government regulations or policies
affecting financial institutions, including changes in regulatory
fees and capital requirements, inflation and changes in the
interest rate environment that reduce our margins or reduce the
fair value of financial instruments, our ability to successfully
integrate acquired entities, if any, and adverse changes in the
securities markets. Consequently, no forward-looking statement
can be guaranteed. Northfield Bancorp, Inc. does not intend to
update any of the forward-looking statements after the date of this
release, or conform these statements to actual events.
| NORTHFIELD BANCORP,
INC. |
| SELECTED CONSOLIDATED FINANCIAL
AND OTHER DATA |
| (Dollars in thousands, except
per share amounts) (unaudited) |
| |
|
|
| |
At |
At |
| |
September 30,
2010 |
December 31,
2009 |
| Selected Financial Condition
Data: |
|
|
| Total assets |
$ 2,193,849 |
$ 2,002,274 |
| Cash and cash equivalents |
36,044 |
42,544 |
| Trading securities |
3,901 |
3,403 |
| Securities available for sale, at estimated
fair value |
1,233,464 |
1,131,803 |
| Securities held to maturity |
5,452 |
6,740 |
| Loans held for investment, net |
802,598 |
729,269 |
| Allowance for loan losses |
(20,929) |
(15,414) |
| Net loans held for investment |
781,669 |
713,855 |
| Non-performing loans(1) |
55,391 |
41,822 |
| Other real estate owned |
171 |
1,938 |
| Bank owned life insurance |
74,034 |
43,751 |
| Federal Home Loan Bank of New York stock, at
cost |
7,084 |
6,421 |
| |
|
|
| Borrowed funds |
342,107 |
279,424 |
| Deposits |
1,412,393 |
1,316,885 |
| Total liabilities |
1,791,252 |
1,610,734 |
| Total stockholders' equity |
$ 402,597 |
$ 391,540 |
| |
|
|
|
|
| |
Quarter
Ended |
Nine Months
Ended |
| |
September
30, |
September
30, |
| |
2010 |
2009 |
2010 |
2009 |
| Selected Operating
Data: |
|
|
|
|
| Interest income |
$ 21,682 |
$ 21,855 |
$ 64,721 |
$ 63,350 |
| Interest expense |
6,004 |
7,078 |
18,577 |
21,975 |
| Net interest income before provision for loan
losses |
15,678 |
14,777 |
46,144 |
41,375 |
| Provision for loan losses |
3,398 |
2,723 |
8,126 |
7,466 |
| Net interest income after provision for loan
losses |
12,280 |
12,054 |
38,018 |
33,909 |
| Non-interest income |
1,501 |
1,357 |
5,090 |
3,850 |
| Non-interest expense |
11,171 |
8,429 |
28,749 |
25,272 |
| Income before income tax expense |
2,610 |
4,982 |
14,359 |
12,487 |
| Income tax expense |
215 |
1,795 |
4,397 |
4,443 |
| Net income |
$ 2,395 |
$ 3,187 |
$ 9,962 |
$ 8,044 |
| |
|
|
|
|
| Basic earnings per share (2) |
$ 0.06 |
$ 0.08 |
$ 0.24 |
$ 0.19 |
| Diluted earnings per share (2) |
$ 0.06 |
$ 0.08 |
$ 0.24 |
$ 0.19 |
| |
|
|
|
|
| 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
Nine |
| |
Months
Ended |
Months
Ended |
| |
September
30, |
September
30, |
| |
2010 |
2009 |
2010 |
2009 |
| Selected Financial
Ratios: |
|
|
|
|
| Performance Ratios(3): |
|
|
|
|
| Return on assets (ratio of net income to
average total assets)(5) |
0.44 % |
0.66 % |
0.63 % |
0.59 % |
| Return on equity (ratio of net income to
average equity)(5) |
2.36 |
3.23 |
3.35 |
2.76 |
| Average equity to average total
assets |
18.57 |
20.36 |
18.92 |
21.23 |
| Interest rate spread |
2.76 |
2.76 |
2.78 |
2.65 |
| Net interest margin |
3.05 |
3.20 |
3.10 |
3.17 |
| Efficiency ratio(4)(6) |
65.03 |
52.24 |
56.11 |
55.88 |
| Non-interest expense to average total
assets(6) |
2.04 |
1.74 |
1.83 |
1.84 |
| Average interest-earning assets to
average interest-bearing liabilities |
124.70 |
128.87 |
125.63 |
130.73 |
| Asset Quality Ratios: |
|
|
|
|
| Non-performing assets to total
assets |
2.53 |
1.84 |
2.53 |
1.84 |
| Non-performing loans to total loans held
for investment, net |
6.90 |
5.36 |
6.90 |
5.36 |
| Allowance for loan losses to
non-performing loans |
37.78 |
39.74 |
37.78 |
39.74 |
| Allowance for loan losses to total
loans |
2.61 |
2.13 |
2.61 |
2.13 |
| Annualized net charge-offs to total
average loans |
0.80 |
0.36 |
0.46 |
0.43 |
| Provision for loan losses as a multiple
of net charge-offs |
2.14 x |
4.54 x |
3.11 x |
3.65 x |
| |
|
|
|
|
| (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 41,341,567 and 42,212,440
average shares outstanding for the three months ended September 30,
2010, and September 30, 2009, respectively. Basic net income
per common share is calculated based on 41,422,228 and 42,639,492
average shares outstanding for the nine months ended September 30,
2010, and September 30, 2009, respectively. Diluted earnings
per share is calculated based on 41,498,622 and 42,375,268
average shares outstanding for the three months ended September 30,
2010 and September 30, 2009, respectively. Diluted earnings
per share is calculated based on 41,701,476 and 42,729,918 average
shares outstanding for the nine months ended September 30, 2010 and
September 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. |
| (5) September 30, 2010,
amounts include a $1.8 million charge ($1.2 million after-tax)
related to costs associated with the Company's postponed
second-step offering, and a $738,000 benefit related the
elimination of deferred tax liabilities associated with a change in
New York state tax law. September 30, 2009, amounts include a
$770,000 expense ($462,000 after-tax) related to a special FDIC
deposit insurance assessment. |
| (6) September 30, 2010, amounts
include a $1.8 million charge ($1.2 million after-tax) related to
costs associated with the Company's postponed second-step
offering. September 30, 2009, amounts include a $770,000
expense ($462,000 after-tax) related to a special FDIC deposit
insurance assessment. |
| |
|
|
|
|
|
|
| NORTHFIELD BANCORP,
INC. |
| ANALYSIS OF NET INTEREST
INCOME |
| (Dollars in thousands) |
| |
|
|
|
|
|
|
| |
For the Quarter
Ended September 30, |
| |
2010 |
2009 |
| |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
| |
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
| Loans |
$793,600 |
$11,908 |
5.95% |
$659,247 |
$10,251 |
6.17% |
| Mortgage-backed securities |
958,409 |
8,224 |
3.40 |
922,723 |
10,382 |
4.46 |
| Other securities |
256,146 |
1,457 |
2.26 |
149,291 |
1,024 |
2.72 |
| Federal Home Loan Bank of New York
stock |
7,426 |
75 |
4.01 |
7,056 |
113 |
6.35 |
| Interest-earning deposits in financial
institutions |
26,541 |
18 |
0.27 |
91,970 |
85 |
0.37 |
| Total interest-earning
assets |
2,042,122 |
21,682 |
4.21 |
1,830,287 |
21,855 |
4.74 |
| Non-interest-earning assets |
125,438 |
|
|
95,418 |
|
|
| Total assets |
2,167,560 |
|
|
1,925,705 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
| Savings, NOW, and money market
accounts |
673,243 |
1,223 |
0.72 |
576,055 |
1,484 |
1.02 |
| Certificates of deposit |
626,309 |
1,974 |
1.25 |
537,865 |
2,861 |
2.11 |
| Total interest-bearing
deposits |
1,299,552 |
3,197 |
0.98 |
1,113,920 |
4,345 |
1.55 |
| Borrowed funds |
338,094 |
2,807 |
3.29 |
306,335 |
2,733 |
3.54 |
| Total
interest-bearing liabilities |
1,637,646 |
6,004 |
1.45 |
1,420,255 |
7,078 |
1.98 |
| Non-interest bearing deposit accounts |
115,614 |
|
|
100,299 |
|
|
| Accrued expenses and other
liabilities |
11,704 |
|
|
13,144 |
|
|
| Total liabilities |
1,764,964 |
|
|
1,533,698 |
|
|
| Stockholders' equity |
402,596 |
|
|
392,007 |
|
|
| Total liabilities and stockholders'
equity |
2,167,560 |
|
|
1,925,705 |
|
|
| |
|
|
|
|
|
|
| Net interest income |
|
$15,678 |
|
|
$14,777 |
|
| Net interest rate spread (2) |
|
|
2.76 |
|
|
2.76 |
| Net interest-earning assets (3) |
$404,476 |
|
|
$410,032 |
|
|
| Net interest margin (4) |
|
|
3.05% |
|
|
3.20% |
| Average interest-earning
assets to interest-bearing liabilities |
|
124.70 |
|
|
128.87 |
| |
|
|
|
|
|
|
| (1) Average yields and
rates for the three months ended September 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 Nine
Months Ended September 30, |
| |
2010 |
2009 |
| |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
| |
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
| Loans |
$761,969 |
$34,299 |
6.02% |
$633,660 |
$28,075 |
5.92% |
| Mortgage-backed securities |
920,864 |
25,837 |
3.75 |
926,679 |
32,420 |
4.68 |
| Other securities |
245,731 |
4,220 |
2.30 |
83,284 |
1,828 |
2.93 |
| Federal Home Loan Bank of New York
stock |
6,661 |
233 |
4.68 |
7,670 |
300 |
5.23 |
| Interest-earning deposits in financial
institutions |
53,250 |
132 |
0.33 |
93,857 |
727 |
1.04 |
| Total interest-earning
assets |
1,988,475 |
64,721 |
4.35 |
1,745,150 |
63,350 |
4.85 |
| Non-interest-earning assets |
114,515 |
|
|
92,182 |
|
|
| Total assets |
2,102,990 |
|
|
1,837,332 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
| Savings, NOW, and money market
accounts |
668,854 |
3,907 |
0.78 |
551,009 |
4,589 |
1.11 |
| Certificates of deposit |
590,303 |
6,624 |
1.50 |
482,796 |
9,299 |
2.58 |
| Total interest-bearing
deposits |
1,259,157 |
10,531 |
1.12 |
1,033,805 |
13,888 |
1.80 |
| Borrowed funds |
323,654 |
8,046 |
3.32 |
301,110 |
8,087 |
3.59 |
| Total
interest-bearing liabilities |
1,582,811 |
18,577 |
1.57 |
1,334,915 |
21,975 |
2.20 |
| Non-interest bearing deposit accounts |
112,777 |
|
|
97,980 |
|
|
| Accrued expenses and other
liabilities |
9,431 |
|
|
14,425 |
|
|
| Total liabilities |
1,705,019 |
|
|
1,447,320 |
|
|
| Stockholders' equity |
397,971 |
|
|
390,012 |
|
|
| Total liabilities and stockholders'
equity |
2,102,990 |
|
|
1,837,332 |
|
|
| |
|
|
|
|
|
|
| Net interest income |
|
$46,144 |
|
|
$41,375 |
|
| Net interest rate spread (2) |
|
|
2.78 |
|
|
2.65 |
| Net interest-earning assets (3) |
$405,664 |
|
|
$410,235 |
|
|
| Net interest margin (4) |
|
|
3.10% |
|
|
3.17% |
| Average interest-earning assets to
interest-bearing liabilities |
|
|
125.63 |
|
|
130.73 |
| |
|
|
|
|
|
|
| (1) Average yields and
rates for the nine months ended September 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
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