Notable Items Include:
- Earnings Per Share Increased 17.9% to $0.33, for the
Year Ended December 31, 2010, as Compared to $0.28 Per Share for
the Year Ended December 31, 2009. Net Income Was $0.09 Per Share,
for the Quarter Ended December 31, 2010, Compared to $0.10 Per
Share for the Same Quarter in 2009
- Net Interest Income Increased 9.7% for the Year and
4.8% Over the Comparable Quarter of 2009
- Loans Held for Investment, Net, Increased 13.5% for the
Year and 3.1% in the Fourth Quarter as Compared to September 30,
2010
- Net Loan Charge-Offs for the Year Represented 0.47% of
Average Loans While the Allowance for Loan Losses Increased to
2.64% of Total Loans at Year End
- Nonperforming Loans Total $60.9 Million Compared to
$55.4 Million at September 30, 2010, and $41.8 Million at December
31, 2009
- Accruing Loans 30 to 89 Days Delinquent Declined 43.7%
to $19.8 Million at Year End as Compared to $35.2 Million at
September 30, 2010
- Second Brooklyn Branch Opened With Three Additional
Brooklyn Branches Under Construction
- Quarterly Cash Dividend of $0.05 Per Share Declared on
Common Stock
Northfield Bancorp, Inc. (Nasdaq:NFBK), the
holding company for Northfield Bank, reported basic and diluted
earnings per common share of $0.09 and $0.10 for the quarters ended
December 31, 2010 and 2009, respectively, and basic and diluted
earnings per share of $0.33 and $0.28 for the years ended December
31, 2010 and 2009, respectively. Net income for the year ended
December 31, 2010 included an after-tax charge of $1.2 million, or
$0.03 per share, for costs related to the Company postponing its
second-step stock offering announced in September 2010. In
addition, net income for the year ended December 31, 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, as the result of a change in New York state tax
law enacted in September 2010.
Commenting on the annual and fourth quarter results, John W.
Alexander, the Company's Chairman and Chief Executive Officer
noted, "We continue to generate strong results with an almost 18%
increase in earnings per share for the year notwithstanding a
significant charge related to the postponement of our second step
stock offering. Our profitability is driven by solid loan
growth and diligence in controlling interest and other operating
costs. Loans 30 to 89 days delinquent and still accruing
declined almost 44% in the fourth quarter as compared to the
trailing quarter. Our capital and liquidity remain strong, and
we believe we are positioned well to execute on our strategic plan
and benefit from increases in interest rates."
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 February 23, 2011, to stockholders of
record as of February 9, 2011."
Financial Condition
Total assets increased $244.9 million, or 12.2%, to $2.2 billion
at December 31, 2010, from $2.0 billion at December 31,
2009. The increase was primarily attributable to increases in
loans held for investment, net, of $98.3 million, or 13.5%, and
securities of $111.5 million, or 9.8%. In addition, bank owned
life insurance increased $31.1 million, primarily resulting from
the purchase of $28.8 million of insurance policies during the year
ended December 31, 2010, coupled with $2.3 million of income earned
on bank owned life insurance for the year ended December 31,
2010.
Loans held for investment, net, totaled $827.6 million at
December 31, 2010, as compared to $729.3 million at December 31,
2009. The increase was primarily in multi-family real estate
loans, which increased $105.2 million, or 59.0%, to $283.6 million
at December 31, 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 $4.1
million, or 10.2%, to $44.5 million, and home equity loans
increased $2.0 million, or 7.7%, to $28.1 million at December 31,
2010. These increases were partially offset by decreases in
residential, land and construction, and commercial and industrial
loans.
The Company's securities portfolio totaled $1.3 billion at
December 31, 2010, as compared to $1.1 billion at December 31,
2009, an increase of $111.5 million, or 9.8%. At December 31,
2010, $982.9 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 $93.6 million and an estimated fair value of $97.3 million
at December 31, 2010. These private label securities were in a
net unrealized gain position of $3.7 million at December 31, 2010,
consisting of gross unrealized gains of $4.5 million and gross
unrealized losses of $788,000. In addition to the above
mortgage-backed securities, the Company held $121.8 million in
securities issued by corporate entities which were all rated
investment grade at December 31, 2010.
Of the $97.3 million of private label securities, two securities
with an estimated fair value of $10.1 million (amortized cost of
$10.9 million) were rated less than AAA at December 31,
2010. Of the two securities, one had an estimated fair value
of $4.4 million (amortized cost of $4.4 million) and was rated CC,
and the other had an estimated fair value of $5.7 million
(amortized cost of $6.5 million) and was rated Caa2. During
the quarter ended September 30, 2010, the Company recognized
other-than-temporary impairment charges of $962,000 on the $5.7
million security that was rated Caa2. 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. 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 believes that unrealized losses at December
31, 2010, are temporary, and as such, are recorded as a component
of accumulated other comprehensive income, net of tax.
Total liabilities increased to $1.9 billion at December 31,
2010, from $1.6 billion at December 31, 2009. The increase was
primarily attributable to an increase in deposits of $56.0 million,
or 4.3%, an increase in borrowings of $111.8 million, or 40.0%, and
an increase of $70.7 million in amounts due to securities
brokers. The increase in deposits for the year ended December
31, 2010, was due in part to an increase of $13.7 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
$99.0 million and $14.7 million, respectively, from December 31,
2009 to December 31, 2010. These increases were partially
offset by a decrease of $31.4 million in savings deposits and a
decrease of $40.0 million in certificates of deposit (issued by the
Bank) over the same time period. The Company continues to
focus on 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
year ended December 31, 2010. The increase in due to
securities brokers was the result of securities purchases occurring
prior to December 31, 2010, and settling after year end.
Total stockholders' equity increased to $396.7 million at
December 31, 2010, from $391.5 million at December 31,
2009. The increase was primarily attributable to net income of
$13.8 million for the year ended December 31, 2010, and an increase
of $3.4 million in additional paid-in capital primarily related to
the recognition of compensation expense associated with equity
awards. These increases were partially offset by $8.1 million
in stock repurchases, the payment of approximately $3.3 million in
cash dividends, and a decrease in accumulated other comprehensive
income of $1.2 million for the year ended December 31,
2010.
Northfield Bank's (the Company's wholly-owned subsidiary) Tier 1
(core) capital ratio was approximately 13.43%, at December 31,
2010. The Bank's total risk-based capital ratio was
approximately 27.39% 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. Northfield Bancorp, Inc.'s
consolidated average total equity as a percentage of average total
assets was 18.81% for the year ended December 31, 2010, as compared
to 20.82% for the year ended December 31, 2009
Asset Quality
Nonperforming loans totaled $60.9 million (7.4% of total loans)
at December 31, 2010, as compared to $55.4 million (6.9% of total
loans) at September 30, 2010, $51.5 million (6.7% of total loans)
at June 30, 2010, $50.0 million (6.8% of total loans) at March 31,
2010, and $41.8 million (5.7% of total loans) at December 31,
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).
| |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
| |
2010 |
2010 |
2010 |
2010 |
2009 |
| Non-accruing loans |
$ 39,303 |
37,882 |
34,007 |
31,248 |
30,914 |
| Non-accruing loans subject to restructuring
agreements |
19,978 |
17,261 |
17,417 |
13,090 |
10,717 |
| Total non-accruing loans |
59,281 |
55,143 |
51,424 |
44,338 |
41,631 |
| Loans 90 days or more past due and still
accruing |
1,609 |
248 |
77 |
5,710 |
191 |
| Total non-performing loans |
60,890 |
55,391 |
51,501 |
50,048 |
41,822 |
| Other real estate owned |
171 |
171 |
1,362 |
1,533 |
1,938 |
| Total non-performing assets |
$ 61,061 |
55,562 |
52,863 |
51,581 |
43,760 |
| |
|
|
|
|
|
| Loans subject to restructuring agreements and
still accruing |
$ 11,198 |
11,218 |
10,708 |
8,817 |
7,250 |
| |
|
|
|
|
|
| Accruing loans 30 to 89 days delinquent |
$ 19,798 |
35,190 |
30,619 |
38,371 |
28,283 |
Total non-accruing loans increased $4.1 million, to $59.3
million at December 31, 2010, from $55.1 million at September 30,
2010. This increase was primarily attributable to the
following loan types being placed on non-accrual status during the
quarter ended December 31, 2010: $4.7 million of commercial real
estate loans, $338,000 of multifamily loans, and $235,000 of
construction and land loans. The above increases in
non-accruing loans during the quarter ended December 31, 2010, are
net of charge-offs of $111,000, and have $305,000 in specific
reserves allocated to them at December 31, 2010. These
increases were partially offset by a $25,000 one-to-four family
residential loan being paid off during the quarter ended December
31, 2010, an additional $977,000 in charge-offs recorded on
existing non-accrual loans, and principal paydowns of approximately
$181,000. Non-accruing loans subject to restructuring
agreements totaled $20.0 million and $10.7 million at December 31,
2010 and 2009, respectively. Loans subject to restructuring
agreements, and still accruing totaled $11.2 million and $7.3
million at December 31, 2010 and 2009, respectively. During
the year ended December 31, 2010, we entered into ten troubled debt
restructuring agreements, of which $4.0 million and $11.1 million
were classified as accruing and non-accruing, respectively, at
December 31, 2010. At December 31, 2010, $23.5 million, or
75.4% 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 $12.3 million
of the $20.0 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 increased to
$1.6 million from $248,000 September 30, 2010. The increase is
primarily due to two one-to-four family residential loans that are
considered well secured.
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 December 31, 2010 and December 31, 2009
(dollars in thousands).
| |
December 31, 2010 |
| |
Days Past Due |
|
| Real estate loans: |
0 to 29 |
30 to 89 |
90 or more |
Total |
| Commercial |
$ 13,679 |
15,050 |
17,659 |
46,388 |
| One -to- four family
residential |
135 |
770 |
370 |
1,275 |
| Construction and land |
2,152 |
1,860 |
1,110 |
5,122 |
| Multifamily |
1,824 |
927 |
2,112 |
4,863 |
| Home equity and lines of credit |
-- |
-- |
181 |
181 |
| Commercial and industrial loans |
-- |
267 |
1,056 |
1,323 |
| Insurance premium loans |
-- |
-- |
129 |
129 |
| Total non-accruing loans |
$ 17,790 |
18,874 |
22,617 |
59,281 |
| |
|
| |
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 |
| Insurance premium loans |
-- |
-- |
-- |
-- |
| Total non-accruing loans |
$ 9,981 |
11,402 |
20,248 |
41,631 |
Loans 30 to 89 days delinquent and on accrual status at December
31, 2010, totaled $19.8 million, a decrease of $15.4 million, from
the September 30, 2010, balance of $35.2 million. The
following table sets forth delinquencies for accruing loans by type
and by amount at December 31, 2010 (dollars in thousands).
| |
Delinquent Accruing
Loans |
| |
30 to 89 Days |
90 Days and Over |
Total |
| Real estate loans: |
|
|
|
| Commercial |
$ 8,970 |
$ -- |
$ 8,970 |
| One- to four-family residential |
2,575 |
1,108 |
3,683 |
| Construction and land |
499 |
404 |
903 |
| Multifamily |
6,194 |
-- |
6,194 |
| Home equity and lines of credit |
262 |
59 |
321 |
| Commercial and industrial loans |
536 |
38 |
574 |
| Insurance premium loans |
660 |
-- |
660 |
| Other loans |
102 |
-- |
102 |
| Total |
$ 19,798 |
$ 1,609 |
$ 21,407 |
The following table details the amounts and categories of the
troubled debt restructurings by loan type as of December 31, 2010
and December 31, 2009 (dollars in thousands).
| |
At December 31, 2010 |
At December 31, 2009 |
| |
Non-Accruing |
Accruing |
Non-Accruing |
Accruing |
| Troubled debt restructurings: |
|
|
|
|
| Real estate loans: |
|
|
|
|
| Commercial |
$ 13,138 |
$ 7,879 |
$ 3,960 |
$ 5,499 |
| One- to four-family residential |
-- |
1,750 |
-- |
-- |
| Construction and land |
4,012 |
-- |
5,726 |
1,751 |
| Multifamily |
2,327 |
1,569 |
530 |
-- |
| Commercial and industrial |
501 |
-- |
501 |
-- |
| Total |
$ 19,978 |
$ 11,198 |
$ 10,717 |
$ 7,250 |
Other real estate owned amounted to $171,000 at December 31,
2010, as compared to $1.9 million at December 31, 2009. This
decrease was attributable to downward valuation adjustments of
$146,000 recorded against the carrying balances of the properties
in 2010, reflecting deterioration in estimated fair values, coupled
with the sale of other real estate owned properties.
Results of Operations
Quarter ended December 31, 2010 as compared to Quarter Ended
December 31, 2009
Net income decreased $199,000, or 4.9%, to $3.8 million for the
quarter ended December 31, 2010, as compared to $4.0 million for
the quarter ended December 31, 2009, due primarily to an increase
of $953,000 in non-interest expense and an increase of $386,000 in
the provision for loan losses, partially offset by an increase of
$729,000 in net interest income, an increase of $209,000 in
non-interest income, and a decrease of $202,000 in income tax
expense.
Net interest income increased $729,000, or 4.8%, due primarily
to average interest earning assets increasing $120.4 million, or
6.2%, partially offset by a decrease in the net interest margin of
five basis points, or 1.6%, for the quarter ended December 31,
2010, compared to the quarter ended December 31, 2009. The
average yield earned on interest earning assets decreased 35 basis
points, or 7.7%, to 4.21% for the quarter ended December 31, 2010,
compared to 4.56% for the quarter ended December 31,
2009. This change was partially offset by a 46 basis point
decrease in the average rate paid on interest-bearing liabilities
over the comparable period from 1.87% to 1.41%. 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 $99.3 million, and $80.6 million in
mortgage-backed securities, partially offset by decreases in other
securities and 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 $209,000, or 13.6%, to $1.8
million for the quarter ended December 31, 2010, as compared to
$1.5 million for the quarter ended December 31, 2009, primarily as
a result of an increase of $333,000 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 year ended December 31,
2010. This increase was partially offset by a decrease of
$129,000 in gains on securities transactions, net, for the quarter
ended December 31, 2010, compared to the quarter ended December 31,
2009.
Non-interest expense increased $953,000, or 10.6%, for the
quarter ended December 31, 2010, as compared to the quarter ended
December 31, 2009, due primarily to compensation and employee
benefits expense increasing $904,000, which resulted primarily from
increases in full-time equivalent employees related to our
insurance premium finance division formed in October 2009,
increased personnel in branches and operations, higher health care
costs, and to a lesser extent, salary adjustments effective January
1, 2010.
The provision for loan losses was $2.0 million for the quarter
ended December 31, 2010; an increase of $386,000, or 24.6%, from
the $1.6 million provision recorded in the quarter ended December
31, 2009. The increase in the provision for loan losses in the
current quarter was due primarily to increases in total loans,
partially offset by changes in the composition of our loan
portfolio to lower risk rated multi-family loans. During the
quarter ended December 31, 2010, the Company recorded $879,000 of
charge-offs on two non-accruing multifamily loans and $209,000 in
charge-offs on two non-accruing commercial real estate loans, based
on the receipt of current appraisals. Net charge-offs for the
quarter ended December 31, 2010, were $1.1 million, as compared to
$354,000 for the quarter ended December 31, 2009.
The Company recorded income tax expense of $2.0 million and $2.2
million for the quarters ended December 31, 2010 and 2009,
respectively. The effective tax rate for the quarter ended
December 31, 2010, was 34.0%, as compared to 35.1% for the quarter
ended December 31, 2009. The decrease in the effective tax
rate was the result of an increase in permanent differences
primarily as a result of an increase in bank owned life insurance
income.
Year ended December 31, 2010 as compared to Year Ended December
31, 2009
Net income increased $1.7 million, or 14.2%, to $13.8 million
for the year ended December 31, 2010, as compared to $12.1 million
for the year ended December 31, 2009, due primarily to an increase
of $5.5 million in net interest income, an increase of $1.4 million
in non-interest income, and a decrease of $248,000 in income tax
expense, partially offset by an increase of $4.4 million in
non-interest expense, and an increase of $1.0 million in provision
for loan losses.
Net interest income increased $5.5 million, or 9.7%, due
primarily to interest earning assets increasing $213.0 million, or
11.9%, partially offset by a decrease in the net interest margin of
six basis points, or 1.9%, over the prior year comparable
period. The net interest margin decreased for the year ended
December 31, 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 fewer loans
migrating to non-accrual status during the fourth quarter of 2010,
as compared to the amount of loans that migrated to non-accrual
status during the fourth quarter of 2009. The increase in
average interest earning assets was due primarily to an increase in
average loans outstanding of $121.7 million, other securities of
$112.9 million, and mortgage-backed securities of $16.2 million,
being partially offset by decreases in 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 $1.4 million, or 26.9%, primarily
as a result of an increase of $962,000 in gains on securities
transactions, net for the year ended December 31, 2010, as compared
to the year ended December 31, 2009. The Company recognized
$1.9 million in gains on securities transactions during the year
ended December 31, 2010, as compared to $891,000 in gains on
securities transactions during the year ended December 31,
2009. Securities gains during the year ended December 31,
2010, included gross realized gains of $1.3 million primarily from
the sale of mortgage-backed securities, coupled with securities
gains of $597,000 related to the Company's trading
portfolio. During the year ended December 31, 2009, securities
gains included gross realized gains of $299,000 primarily from the
sale of mortgage-backed securities, coupled with securities gains
of $592,000 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. The
Company routinely sells securities for reasons that include smaller
balance securities become cost prohibitive to carry, and when
market pricing presents, in management's assessment, an economic
benefit that outweighs holding such security.
Non-interest income also was positively affected by a $524,000,
or 29.9%, increase in income on bank owned life insurance for the
year ended December 31, 2010, as compared to the year ended
December 31, 2009. The Company also recognized approximately
$197,000 of income on the sale of fixed assets during the year
ended December 31, 2010.
Non-interest expense increased $4.4 million, or 12.9%, for the
year ended December 31, 2010, as compared to the year ended
December 31, 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 $2.2 million, or
12.8%, in compensation and employee benefits
expense. Compensation and employee benefits expense increased
primarily due to increases in full time equivalent employees
related to additional branch and operations personnel, as well as
incremental personnel from our insurance premium finance division
formed in October 2009. Occupancy expense increased $547,000,
or 11.9%, 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 $536,000, or 15.7%, from
the year ended December 31, 2009 to the year ended December 31,
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 $515,000 in FDIC insurance expense. FDIC insurance
expense for the year ended December 31, 2009 included $770,000
related to an FDIC special assessment.
The provision for loan losses was $10.1 million for the year
ended December 31, 2010, an increase of $1.1 million, or 11.6%,
from the $9.0 million provision recorded for the year ended
December 31, 2009. The increase in the provision for loan
losses 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. 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 deterioration of
the local economy. Net charge-offs for the year ended December
31, 2010, were $3.7 million, as compared to $2.4 million for the
year ended December 31, 2009.
The Company recorded income tax expense of $6.4 million and $6.6
million for the years ended December 31, 2010 and 2009,
respectively. The effective tax rate for the year ended
December 31, 2010, was 31.6%, as compared to 35.4% for the year
ended December 31, 2009. The decrease in the effective tax
rate was primarily 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 year ended December 31, 2010, and higher levels of
tax exempt income from bank owned life insurance.
About Northfield Bank
Northfield Bank, founded in 1887, operates 20 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 |
| |
December 31,
2010 |
December 31,
2009 |
| Selected Financial Condition
Data: |
|
|
| Total assets |
$ 2,247,167 |
$ 2,002,274 |
| Cash and cash equivalents |
43,852 |
42,544 |
| Trading securities |
4,095 |
3,403 |
| Securities available for sale, at estimated
fair value |
1,244,313 |
1,131,803 |
| Securities held to maturity |
5,060 |
6,740 |
| Loans held for investment, net |
827,591 |
729,269 |
| Allowance for loan losses |
(21,819) |
(15,414) |
| Net loans held for investment |
805,772 |
713,855 |
| Non-performing loans(1) |
60,890 |
41,822 |
| Other real estate owned |
171 |
1,938 |
| Bank owned life insurance |
74,805 |
43,751 |
| Federal Home Loan Bank of New York stock, at
cost |
9,784 |
6,421 |
| |
|
|
| Borrowed funds |
391,237 |
279,424 |
| Deposits |
1,372,842 |
1,316,885 |
| Total liabilities |
1,850,450 |
1,610,734 |
| Total stockholders' equity |
$ 396,717 |
$ 391,540 |
| |
|
|
| |
Quarter
Ended |
Year
Ended |
| |
December
31, |
December
31, |
| |
2010 |
2009 |
2010 |
2009 |
| Selected Operating
Data: |
|
|
|
|
| Interest income |
$ 21,774 |
$ 22,218 |
$ 86,495 |
$ 85,568 |
| Interest expense |
5,829 |
7,002 |
24,406 |
28,977 |
| Net interest income before provision for loan
losses |
15,945 |
15,216 |
62,089 |
56,591 |
| Provision for loan losses |
1,958 |
1,572 |
10,084 |
9,038 |
| Net interest income after provision for loan
losses |
13,987 |
13,644 |
52,005 |
47,553 |
| Non-interest income |
1,752 |
1,543 |
6,842 |
5,393 |
| Non-interest expense |
9,935 |
8,982 |
38,684 |
34,254 |
| Income before income tax expense |
5,804 |
6,205 |
20,163 |
18,692 |
| Income tax expense |
1,973 |
2,175 |
6,370 |
6,618 |
| Net income |
$ 3,831 |
$ 4,030 |
$ 13,793 |
$ 12,074 |
| |
|
|
|
|
| Basic earnings per share (2) |
$ 0.09 |
$ 0.10 |
$ 0.33 |
$ 0.28 |
| Diluted earnings per share (2) |
$ 0.09 |
$ 0.10 |
$ 0.33 |
$ 0.28 |
| |
| NORTHFIELD BANCORP,
INC. |
| SELECTED CONSOLIDATED FINANCIAL
AND OTHER DATA |
| (Dollars in thousands, except
per share amounts) (unaudited) |
| |
|
|
|
|
| |
At or For the
Three |
|
|
| |
Months
Ended |
At or For the Year
Ended |
| |
December
31, |
December
31, |
| |
2010 |
2009 |
2010 |
2009 |
| Selected Financial
Ratios: |
|
|
|
|
| Performance Ratios(3): |
|
|
|
|
| Return on assets (ratio of net income to
average total assets)(5) |
0.70 % |
0.80 % |
0.65 % |
0.64 % |
| Return on equity (ratio of net income to
average equity)(5) |
3.78 |
4.05 |
3.46 |
3.09 |
| Average equity to average total
assets |
18.50 |
19.71 |
18.81 |
20.82 |
| Interest rate spread |
2.80 |
2.69 |
2.79 |
2.66 |
| Net interest margin |
3.08 |
3.13 |
3.10 |
3.16 |
| Efficiency ratio(4)(6) |
56.14 |
53.59 |
56.12 |
55.26 |
| Non-interest expense to average total
assets(6) |
1.81 |
1.78 |
1.82 |
1.82 |
| Average interest-earning assets to
average interest-bearing liabilities |
124.84 |
129.67 |
125.52 |
130.44 |
| Asset Quality Ratios: |
|
|
|
|
| Non-performing assets to total
assets |
2.72 |
2.19 |
2.72 |
2.19 |
| Non-performing loans to total loans held
for investment, net |
7.36 |
5.73 |
7.36 |
5.73 |
| Allowance for loan losses to
non-performing loans |
35.83 |
36.86 |
35.83 |
36.86 |
| Allowance for loan losses to total
loans |
2.64 |
2.11 |
2.64 |
2.11 |
| Annualized net charge-offs to total
average loans |
0.52 |
0.20 |
0.47 |
0.37 |
| Provision for loan losses as a multiple
of net charge-offs |
1.83 x |
4.44 x |
2.74 x |
3.76 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 41,283,220 and 41,713,862 average
shares outstanding for the three months ended December 31, 2010,
and December 31, 2009, respectively. Basic net income per
common share is calculated based on 41,387,106 and 42,405,774
average shares outstanding for the year ended December 31, 2010,
and December 31, 2009, respectively. Diluted earnings per
share is calculated based on 41,573,074 and 41,949,757 average
shares outstanding for the three months ended December 31, 2010 and
December 31, 2009, respectively. Diluted earnings per share is
calculated based on 41,669,006 and 42,532,568 average shares
outstanding for the year ended December 31, 2010 and December 31,
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) Year ended December 31, 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. Year ended December 31, 2009, amounts
include a $770,000 expense ($462,000 after-tax) related to a
special FDIC deposit insurance assessment. |
| (6) Year ended December 31, 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. Year ended December 31, 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 December 31, |
| |
2010 |
2009 |
| |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
| |
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
| Loans |
$ 812,638 |
$ 12,382 |
6.05 % |
$ 713,356 |
$ 10,814 |
6.01 % |
| Mortgage-backed securities |
983,877 |
7,854 |
3.17 |
903,297 |
9,836 |
4.32 |
| Other securities |
223,392 |
1,406 |
2.50 |
256,541 |
1,395 |
2.16 |
| Federal Home Loan Bank of New York
stock |
7,473 |
121 |
6.42 |
6,711 |
99 |
5.85 |
| Interest-earning deposits in financial
institutions |
24,292 |
11 |
0.18 |
51,413 |
74 |
0.57 |
| Total interest-earning assets |
2,051,672 |
21,774 |
4.21 |
1,931,318 |
22,218 |
4.56 |
| Non-interest-earning assets |
121,085 |
|
|
71,683 |
|
|
| Total assets |
2,172,757 |
|
|
2,003,001 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
| Savings, NOW, and money market
accounts |
700,932 |
1,212 |
0.69 |
614,032 |
1,457 |
0.94 |
| Certificates of deposit |
590,866 |
1,830 |
1.23 |
589,176 |
2,869 |
1.93 |
| Total interest-bearing
deposits |
1,291,798 |
3,042 |
0.93 |
1,203,208 |
4,326 |
1.43 |
| Borrowed funds |
351,580 |
2,787 |
3.14 |
286,250 |
2,676 |
3.71 |
| Total
interest-bearing liabilities |
1,643,378 |
5,829 |
1.41 |
1,489,458 |
7,002 |
1.87 |
| Non-interest bearing deposit accounts |
117,014 |
|
|
105,797 |
|
|
| Accrued expenses and other
liabilities |
10,407 |
|
|
13,035 |
|
|
| Total liabilities |
1,770,799 |
|
|
1,608,290 |
|
|
| Stockholders' equity |
401,958 |
|
|
394,711 |
|
|
| Total liabilities and stockholders'
equity |
2,172,757 |
|
|
2,003,001 |
|
|
| |
|
|
|
|
|
|
| Net interest income |
|
$ 15,945 |
|
|
$ 15,216 |
|
| Net interest rate spread (2) |
|
|
2.80 |
|
|
2.69 |
| Net interest-earning assets (3) |
$ 408,294 |
|
|
$ 441,860 |
|
|
| Net interest margin (4) |
|
|
3.08 % |
|
|
3.13 % |
| Average interest-earning assets to
interest-bearing liabilities |
|
|
124.84 |
|
|
129.67 |
| |
|
|
|
|
|
|
| (1) Average yields and
rates for the three months ended December 31, 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 Year
Ended December 31, |
| |
2010 |
2009 |
| |
Average Outstanding
Balance |
Interest |
Average Yield/
Rate |
Average Outstanding
Balance |
Interest |
Average Yield/
Rate |
| |
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
| Loans |
$ 775,404 |
$ 46,681 |
6.02% |
$ 653,748 |
$ 38,889 |
5.95% |
| Mortgage-backed securities |
936,991 |
33,306 |
3.55 |
920,785 |
42,256 |
4.59 |
| Other securities |
239,872 |
6,011 |
2.51 |
126,954 |
3,223 |
2.54 |
| Federal Home Loan Bank of New York
stock |
6,866 |
354 |
5.16 |
7,428 |
399 |
5.37 |
| Interest-earning deposits in financial
institutions |
45,951 |
143 |
0.31 |
83,159 |
801 |
0.96 |
| Total interest-earning assets |
2,005,084 |
86,495 |
4.31 |
1,792,074 |
85,568 |
4.77 |
| Non-interest-earning assets |
115,491 |
|
|
87,014 |
|
|
| Total assets |
2,120,575 |
|
|
1,879,088 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
| Savings, NOW, and money market
accounts |
676,334 |
5,119 |
0.76 |
566,894 |
6,046 |
1.07 |
| Certificates of deposit |
590,445 |
8,454 |
1.43 |
509,610 |
12,168 |
2.39 |
| Total interest-bearing
deposits |
1,266,779 |
13,573 |
1.07 |
1,076,504 |
18,214 |
1.69 |
| Borrowed funds |
330,693 |
10,833 |
3.28 |
297,365 |
10,763 |
3.62 |
| Total
interest-bearing liabilities |
1,597,472 |
24,406 |
1.53 |
1,373,869 |
28,977 |
2.11 |
| Non-interest bearing deposit accounts |
114,450 |
|
|
99,950 |
|
|
| Accrued expenses and other
liabilities |
9,677 |
|
|
14,075 |
|
|
| Total liabilities |
1,721,599 |
|
|
1,487,894 |
|
|
| Stockholders' equity |
398,976 |
|
|
391,194 |
|
|
| Total liabilities and stockholders'
equity |
2,120,575 |
|
|
1,879,088 |
|
|
| |
|
|
|
|
|
|
| Net interest income |
|
$ 62,089 |
|
|
$ 56,591 |
|
| Net interest rate spread (1) |
|
|
2.78 |
|
|
2.66 |
| Net interest-earning assets (2) |
$ 407,612 |
|
|
$ 418,205 |
|
|
| Net interest margin (3) |
|
|
3.10% |
|
|
3.16% |
| Average interest-earning
assets to interest-bearing liabilities |
|
125.52 |
|
|
130.44 |
| |
|
|
|
|
|
|
| (1) 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. |
| (2) Net interest-earning
assets represent total interest-earning assets less total
interest-bearing liabilities. |
| (3) Net interest margin
represents net interest income divided by average total
interest-earning assets. |
CONTACT: Steven M. Klein
Chief Financial Officer
Tel: (732) 499-7200 ext. 2510
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