NOTABLE ITEMS
INCLUDE:
- 10.0% INCREASE IN EARNINGS PER SHARE FOR THE
QUARTER AND 27.8% FOR THE SIX MONTHS OVER THE COMPARABLE PERIODS IN
2010
- LOAN PRODUCTION REMAINS STRONG AS LOANS HELD
FOR INVESTMENT, NET, INCREASED 9.0% DURING THE SIX MONTHS TO $902
MILLION
- DEPOSITS INCREASE 5.5% FOR THE SIX MONTHS TO
$1.449 BILLION
- NON-ACCRUING LOANS DECREASE FROM DECEMBER 31,
2010 TO $56.0 MILLION, AND REMAIN STABLE FROM MARCH 31,
2011
- ACCRUING LOANS 30 TO 89 DAYS DELINQUENT
CONTINUE TO DECLINE FOR THE QUARTER AND THE SIX MONTHS ENDED JUNE
30, 2011
- CAPITAL REMAINS STRONG AT OVER 17% OF TOTAL
ASSETS
- DECLARATION OF A $0.06 PER SHARE CASH
DIVIDEND
Northfield Bancorp, Inc.
(Nasdaq:NFBK), the holding company for Northfield Bank, reported
basic and diluted earnings per common share of $0.11 and $0.23 for
the quarter and six months ended June 30, 2011, respectively as
compared to $0.10 and $0.18 for the quarter and six months ended
June 30, 2010, respectively.
"Northfield is pleased to report continued strong financial
results. In addition to excellent earnings, we finished the quarter
with strong capital, and strong liquidity," said Chairman and CEO,
John Alexander. "The demand for loans has been good with total
loans increasing nine percent for the first six months of this
year. Credit quality continues to improve as approximately 50%
of our nonperforming loans are performing in accordance with either
original or restructured terms. We continue to experience low
loan charge-offs which reflects the strong underwriting and
collateral support in our portfolio, and loans that are accruing
but are 30-89 days delinquent continue to decline. These signs
are encouraging particularly in an economic environment where
unemployment remains high, the local economy remains sluggish, and
the world economy is in turmoil."
Mr. Alexander continued, "In addition to strong core earnings,
during the quarter we again reported substantial gains on
securities transactions resulting from the disposition of
securities to fund loan growth, from disposing of small balance
securities to improve execution, or from taking advantage of
pricing opportunities in the market."
"We also have worked aggressively to expand our deposit base and
the footprint of our franchise. Year to date our deposits have
increased over five percent. We now have 21 branches in our
retail network following the opening of our newest Brooklyn branch
in early June. Our expansion continues with three branches in
development in Brooklyn, one in Staten Island, and two in New
Jersey."
Mr. Alexander continued, "I am pleased to announce that the
Board of Directors has declared a quarterly cash dividend of $0.06
per common share, payable on August 24, 2011, to stockholders of
record as of August 10, 2011."
Financial Condition
Total assets increased $60.4 million, or 2.7%, to $2.3 billion
at June 30, 2011, from $2.2 billion at December 31, 2010. The
increase was primarily attributable to increases in loans held for
investment, net, of $75.0 million, or 9.1%, and interest-bearing
deposits in other financial institutions of $18.2 million, or
53.5%. These increases were partially offset by decreases in
securities available for sale, held to maturity securities, loans
held for sale, Federal Home Loan Bank of New York, stock, and
accrued interest receivable.
Loans held for investment, net, totaled $902.6 million at June
30, 2011, as compared to $827.6 million at December 31,
2010. The increase was primarily in multi-family real estate
loans, which increased $74.5 million, or 26.3%, to $358.1 million
at June 30, 2011, from $283.6 million at December 31,
2010. Insurance premium loans increased $14.5 million, or
32.6%, to $59.0 million, and home equity loans increased $2.1
million, or 7.4%, to $30.2 million at June 30, 2011. These
increases were partially offset by decreases in commercial real
estate, one-to-four family residential, land and construction, and
commercial and industrial loans. Currently, management is
focused on originating multi-family loans, with less emphasis on
other loan types.
The Company's securities portfolio totaled $1.2 billion at June
30, 2011, compared to $1.3 billion at December 31, 2010. At
June 30, 2011, $1.1 billion 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 these
three entities, referred to as "private label securities." The
private label securities had an amortized cost of $48.3 million and
an estimated fair value of $49.8 million at June 30,
2011. These private label securities were in a net unrealized
gain position of $1.5 million at June 30, 2011, consisting of gross
unrealized gains of $2.3 million and gross unrealized losses of
$759,000. In addition to the above mortgage-backed securities,
the Company held $104.5 million in securities issued by corporate
entities which were all rated investment grade at June 30, 2011,
and $9.2 million of equity investments in mutual funds, which focus
on investments that qualify under the Community Reinvestment Act
and money market mutual funds.
Of the $48.3 million of private label securities, two securities
with an estimated fair value of $9.0 million (amortized cost of
$9.8 million) were rated less than investment grade at June 30,
2011. One of the two securities was rated CC and the other
security was rated Caa2. The ratings of the securities
detailed above represent the lowest rating for each security
received from the rating agencies of Moody's, Standard &
Poor's, and Fitch. The Company continues to receive principal
and interest payments in accordance with the contractual terms 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 the
securities rated rate below investment grade at June 30,
2011. As a result of management's evaluation of these
securities, the Company recognized other-than-temporary impairment
of $991,000 on the securities rated below investment grade for the
quarter ended June 30, 2011. 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
$248,000 was recognized in earnings for the quarter ended June 30,
2011, and the non-credit component of $743,000 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 June 30, 2011, and as
such, were recorded as a component of accumulated other
comprehensive income, net of tax.
During the three months ended March 31, 2011, the Company
recognized an other-than-temporary impairment charge on an equity
investment in a mutual fund. The investment had been in a
continuous loss position for approximately ten months, and as a
result of management's evaluation of this security, the Company
believed that the unrealized loss of $161,000 was
other-than-temporary, and as such, recognized this charge in
earnings during the three months ended March 31, 2011. There was no
further impairment during the three months ended June 30,
2011.
Interest-bearing deposits in other financial institutions
totaled $52.2 million at June 30, 2011, as compared to $34.0
million at December 31, 2010. The Company routinely maintains
liquid assets in interest-bearing accounts in other
well-capitalized financial institutions.
Total liabilities increased $59.0 million from December 31,
2010. The increase was primarily attributable to an increase
in deposits of $75.7 million, or 5.5%, and an increase in
borrowings of $53.3 million, or 13.6%, partially offset by a
decrease of $70.7 million in amounts due to securities brokers for
securities purchased but not settled at period end.
The increase in deposits for the six months ended June 30, 2011
was due in part to an increase of certificates of deposit (issued
by the Bank) of $92.7 million, or 19.1% as compared to December 31,
2010. In addition, transaction accounts increased $18.5
million, or 9.9%, from December 31, 2010 to June 30,
2011. These increases were partially offset by a decrease of
$5.2 million in total savings deposits, and a decrease of $30.2
million in short-term certificates of deposit originated through
the CDARS® Network. Deposits originated through the CDARS®
Network totaled $38.2 million at June 30, 2011, and $68.4 million
at December 31, 2010. The Company utilizes the CDARS® Network as a
cost effective alternative to other short-term funding
sources. The increase in borrowings was primarily the result
of the Company taking advantage of the current lower interest rate
market to reduce interest rate risk, partially offset by maturities
during the six months ended June 30, 2011. The decrease in due
to securities brokers was the result of their not being any
security purchases occurring prior to June 30, 2011, and settling
after quarter end, as compared to $70.7 million at December 31,
2010.
Total stockholders' equity increased by $1.5 million to $398.2
million at June 30, 2011, from $396.7 million at December 31,
2010. The increase was primarily due to net income of $9.3
million for the six months ended June 30, 2011, and an increase of
$1.8 million in additional paid-in capital primarily related to the
recognition of compensation expense associated with equity awards,
and an increase in accumulated other comprehensive income of $4.7
million for the six months ended June 30, 2011. These
increases were partially offset by $12.8 million in stock
repurchases and the payment of approximately $1.8 million in cash
dividends.
Northfield Bank's (the Company's wholly-owned subsidiary) Tier 1
(core) capital ratio was approximately 13.57%, June 30,
2011. The Bank's total risk-based capital ratio was
approximately 27.51% 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
17.35% for the six months ended June 30, 2011, as compared to
19.11% for the six months ended June 30,
2010.
Asset Quality
Nonperforming loans totaled $58.0 million (6.4% of total loans)
as compared to $56.7 million (6.6% of total loans) at March 31,
2011, $60.9 million (7.4% of total loans) at December 31, 2010,
$55.4 million (6.9% of total loans) at September 30, 2010, and
$51.5 million (6.7% of total loans) at June 30, 2010. 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, |
|
2011 |
2011 |
2010 |
2010 |
2010 |
Non-accruing loans |
$29,036 |
31,662 |
39,303 |
37,882 |
34,007 |
Non-accruing loans subject to restructuring
agreements |
26,994 |
24,136 |
19,978 |
17,261 |
17,417 |
Total non-accruing loans |
56,030 |
55,798 |
59,281 |
55,143 |
51,424 |
Loans 90 days or more past due and still
accruing |
1,987 |
876 |
1,609 |
248 |
77 |
Total non-performing loans |
58,017 |
56,674 |
60,890 |
55,391 |
51,501 |
Other real estate owned |
118 |
521 |
171 |
171 |
1,362 |
Total non-performing assets |
$58,135 |
57,195 |
61,061 |
55,562 |
52,863 |
|
|
|
|
|
|
Loans subject to restructuring agreements and
still accruing |
$15,622 |
12,259 |
11,198 |
11,218 |
10,708 |
|
|
|
|
|
|
Accruing loans 30 to 89 days delinquent |
$14,169 |
14,551 |
19,798 |
35,190 |
30,619 |
Total Non-Accruing Loans
Total non-accruing loans decreased $3.3 million, to $56.0
million at June 30, 2011, from $59.3 million at December 31,
2010. This decrease was primarily attributable to the
following loan types being returned to accrual status during the
six months ended June 30, 2011: $1.8 million of multifamily
loans, $942,000 of commercial real estate loans, and $332,000 of
one-to-four family residential loans. Loans returned to
accrual status were current as to principal and interest, and
factors indicating doubtful collection no longer existed, including
the borrower's performance under the original loan terms for at
least six months. Non-accrual loans also decreased as a result
of a $612,000 of pay-offs, the transfer of a $376,000 commercial
real estate loan to other real estate owned, an additional $1.4
million of charge-offs being recorded on existing and new
non-accrual loans, and principal pay-downs of approximately $2.6
million. The above decreases in non-accruing loans during the
six months ended June 30, 2011, were partially offset by the
following loan types being placed on non-accrual status during the
six months ended June 30, 2011: $1.9 million of commercial
real estate loans, $676,000 of commercial and industrial loans,
$405,000 of construction and land loans, home equity loans of
$155,000, and $1.7 million of one-to-four family loans.
Delinquency Status of Total Non-accruing Loans
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 in a non-accruing status.
The following tables detail the delinquency status of
non-accruing loans at June 30, 2011 and December 31, 2010 (dollars
in thousands).
|
June 30, 2011 |
|
Days Past Due |
|
Real estate loans: |
0 to 29 |
30 to 89 |
90 or more |
Total |
Commercial |
$25,237 |
3,986 |
15,647 |
44,870 |
One-to-four family residential |
152 |
412 |
2,086 |
2,650 |
Construction and land |
2,456 |
-- |
875 |
3,331 |
Multifamily |
-- |
-- |
3,001 |
3,001 |
Home equity and lines of credit |
-- |
-- |
337 |
337 |
Commercial and industrial loans |
552 |
-- |
1,232 |
1,784 |
Insurance premium loans |
-- |
-- |
57 |
57 |
Total non-accruing loans |
$28,397 |
4,398 |
23,235 |
56,030 |
|
|
|
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 |
Loans Subject to Restructuring Agreements
Included in non-accruing loans are loans subject to
restructuring agreements totaling $27.0 million and $20.0 million
at June 30, 2011, and December 31, 2010, respectively. At June 30,
2011, $25.5 million, or 94.4% of the $27.0 million were performing
in accordance with their restructured terms.
The Company also holds loans subject to restructuring
agreements, and still accruing, which totaled $15.6 million and
$11.2 million at June 30, 2011 and December 31, 2010, respectively.
At June 30, 2011, $14.1 million, or 90.0% of the $15.6 million were
performing in accordance with their restructured terms.
The following table details the amounts and categories of the
loans subject to restructuring agreements by loan type as of June
30, 2011 and December 31, 2010 (dollars in thousands).
|
At June 30, 2011 |
At December 31, 2010 |
|
Non-Accruing |
Accruing |
Non-Accruing |
Accruing |
Troubled debt restructurings: |
|
|
|
|
Real estate loans: |
|
|
|
|
Commercial |
$ 22,998 |
$ 10,770 |
$ 13,138 |
$ 7,879 |
One-to-four family residential |
498 |
2,388 |
-- |
1,750 |
Construction and land |
2,456 |
-- |
4,012 |
-- |
Multifamily |
491 |
1,561 |
2,327 |
1,569 |
Commercial and industrial |
551 |
903 |
501 |
-- |
Total |
$ 26,994 |
$ 15,622 |
$ 19,978 |
$ 11,198 |
|
|
|
|
|
Performing in accordance
with restructured terms |
94.40% |
90.00% |
61.03% |
100.00% |
Loans 90 Days or More Past Due and Still Accruing and Other Real
Estate Owned
Loans 90 days or more past due and still accruing increased
$378,000 from $1.6 million at December 31, 2010 to $2.0 million at
June 30, 2011. Loans 90 days or more past due and still
accruing at June 30, 2011, are considered well-secured and in the
process of collection. Of the $2.0 million, $1.5 million made
payments on July 1, 2011, and $496,000 was past maturity, paying
interest in accordance with original loan terms, and in the process
of renewal.
Other real estate owned amounted to $118,000 at June 30, 2011,
as compared to $171,000 at December 31, 2010.
Delinquency Status of Accruing Loans 30-89 Days Delinquent
Loans 30 to 89 days delinquent and on accrual status at June 30,
2011, totaled $14.2 million, a decrease of $5.6 million, from the
December 31, 2010 balance of $19.8 million. The following
tables set forth delinquencies for accruing loans by type and by
amount at June 30, 2011 and December 31, 2010 (dollars in
thousands).
|
June 30, 2011 |
|
30 to 89 Days |
90 Days and Over |
Total |
Real estate loans: |
|
|
|
Commercial |
$ 7,552 |
$ 496 |
$ 8,048 |
One-to-four family residential |
1,586 |
-- |
1,586 |
Construction and land |
500 |
-- |
500 |
Multifamily |
3,704 |
-- |
3,704 |
Home equity and lines of credit |
94 |
1,491 |
1,585 |
Commercial and industrial loans |
137 |
-- |
137 |
Insurance premium loans |
527 |
-- |
527 |
Other loans |
69 |
-- |
69 |
Total delinquent accruing loans |
$ 14,169 |
$ 1,987 |
$ 16,156 |
|
|
|
December 31, 2010 |
|
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 delinquent accruing loans |
$ 19,798 |
$ 1,609 |
$ 21,407 |
Results of Operations
Comparison of Operating Results for the Three Months Ended June
30, 2011 and 2010
Net income increased $161,000, or 3.9%, to $4.3 million for the
quarter ended June 30, 2011, as compared to $4.2 million for the
quarter ended June 30, 2010, due primarily to an increase of
$324,000 in non-interest income, and a $1.0 million decrease in the
provision for loan losses, partially offset by a decrease in net
interest income of $88,000 and an increase of $1.1 million in
non-interest expense.
Net interest income decreased $88,000, or 0.6%, as
interest-earning assets increased by 10.7% to $2.2 billion, and the
net interest margin decreased 10.2%, to 2.90%. The general
decline in interest rates has resulted in yields earned on interest
earning assets declining 35 basis points to 4.12% for the current
quarter as compared to 4.47% for the prior year comparable period,
while rates paid on interest-bearing liabilities decreased 9 basis
points to 1.47% for the current quarter as compared to 1.56% for
the prior year comparable period. The increase in average
interest earning assets was due primarily to increases in average
loans outstanding of $119.1 million and $239.6 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 $324,000, or 17.4%, to $2.2
million for the quarter ended June 30, 2011, as compared to $1.9
million for the quarter ended June 30, 2010. This increase was
primarily a result of a $101,000 increase in gains on security
sales, with $886,000 in gains on security sales for the current
year quarter as compared to $785,000 for the comparable quarter in
2010, a $114,000 increase in fees and service charges for customer
services, a $208,000 decrease in trading losses on securities
maintained in the Company's deferred compensation plan, and a
$232,000 increase of income earned on bank owned life insurance,
generated by increased cash surrender values, primarily resulting
from higher levels of bank owned life insurance. The Company
routinely sells securities when market pricing presents, in
management's assessment, an economic benefit that outweighs holding
such securities, and when smaller balance securities become cost
prohibitive to carry. These increases were partially offset by
a $248,000 other-than-temporary credit impairment charge recognized
on two private label mortgage-backed securities, and a decrease of
$83,000 in other income.
Non-interest expense increased $1.1 million, or 13.3%, for the
quarter ended June 30, 2011, as compared to the quarter ended June
30, 2010, due primarily to compensation and employee benefits
expense increasing $840,000 which resulted primarily from increases
in employees related to additional branch and operations personnel,
and to a lesser extent, salary adjustments effective January 1,
2011. Occupancy expense increased $142,000, or 12.0%, 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. Professional fees
increased $153,000, over the same time period, primarily due to
increased costs related to loan workouts.
The provision for loan losses was $1.8 million for the quarter
ended June 30, 2011; a decrease of $1.0 million, or 37.5%, from the
$2.8 million provision recorded in the quarter ended June 30,
2010. The decrease in the provision for loan losses in the
current quarter was due primarily to a shift in the composition of
our loan portfolio to multi-family loans, which generally require
lower general reserves than other commercial real estate loans, and
decreased levels of delinquencies. During the quarter ended
June 30, 2011, the Company recorded net charge-offs of $245,000
compared to net charge-offs of $822,000 for the quarter ended June
30, 2010.
The Company recorded income tax expense of $2.3 million for the
quarters ended June 30, 2011, and 2010. The effective tax rate
for the quarter ended June 30, 2011, was 35.0%, as compared to
35.9% for the quarter ended June 30, 2010. The decrease in the
effective tax rate was primarily a result of an increase in bank
owned life insurance income.
Comparison of Operating Results for the Six Months Ended June
30, 2011 and 2010
Net income increased $1.8 million, or 23.1%, to $9.3 million for
the six months ended June 30, 2011, as compared to $7.6 million for
the six months ended June 30, 2010, due primarily to an increase of
$1.7 million in non-interest income, an increase in net interest
income of $1.1 million, and a $1.6 million decrease in the
provision for loan losses, partially offset by an increase of $2.0
million in non-interest expense, and an increase of $746,000 in
income tax expense.
Net interest income increased $1.1 million, or 3.7%, as
interest-earning assets increased by 9.8% to $2.2 billion, and the
net interest margin decreased 5.7%, to 2.96%. The general
decline in interest rates has resulted in yields earned on interest
earning assets declining 26 basis points to 4.17% for the current
six-months as compared to 4.43% for the prior year comparable
period, while rates paid on interest-bearing liabilities decreased
16 basis points to 1.47% for the current six months as compared to
1.63% for the prior year comparable period. The increase in
average interest earning assets was due primarily to increases in
average loans outstanding of $113.1 million and $200.6 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 $1.7 million, or 47.7%, to $5.3
million for the six months ended June 30, 2011, as compared to $3.6
million for the six months ended June 30, 2010. This increase
was primarily a result of a $1.5 million increase in gains on
security sales, with $2.5 million in gains on security sales for
the current six months as compared to $1.1 million for the
comparable six months in 2010, a $148,000 increase in fees and
service charges for customer services, and a $550,000 increase of
income earned on bank owned life insurance, generated by increased
cash surrender values, primarily resulting from higher levels of
bank owned life insurance. The Company routinely sells
securities when market pricing presents, in management's
assessment, an economic benefit that outweighs holding such
securities, and when smaller balance securities become cost
prohibitive to carry. These increases were partially offset by
a $409,000 other-than-temporary credit impairment charge recognized
on two private label mortgage backed securities and a equity mutual
fund and a decrease of $78,000 in other income.
Non-interest expense increased $2.0 million, or 11.1%, for the
six months ended June 30, 2011, as compared to the six months ended
June 30, 2010, due primarily to compensation and employee benefits
expense increasing $1.2 million which resulted primarily from
increases in employees related to additional branch and operations
personnel, and to a lesser extent, salary adjustments effective
January 1, 2011. Occupancy expense increased $440,000, or
18.5%, 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. Professional
fees increased $214,000, over the same time period, primarily due
to increased costs related to loan workouts.
The provision for loan losses was $3.1 million for the six
months ended June 30, 2011; a decrease of $1.6 million, or 34.1%,
from the $4.7 million provision recorded in the six months ended
June 30, 2010. The decrease in the provision for loan losses
in the current six months was due primarily to a shift in the
composition of our loan portfolio to multi-family loans, which
generally require lower general reserves than other commercial real
estate loans, and decreased levels of delinquencies. During
the six months ended June 30, 2011, the Company recorded net
charge-offs of $1.4 million compared to net charge-offs of $1.0
million for the six months ended June 30, 2010.
The Company recorded income tax expense of $4.9 million and $4.2
million for the six months ended June 30, 2011, and 2010,
respectively. The effective tax rate for the six months ended
June 30, 2011, was 34.6%, as compared to 35.6% for the six months
ended June 30, 2010. The decrease in the effective tax rate
was primarily a result of an increase in bank owned life insurance
income, partially offset by an increase in taxable
income.
About Northfield Bank
Northfield Bank, founded in 1887, operates 21 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 |
|
June 30, 2011 |
December 31,
2010 |
Selected Financial Condition
Data: |
|
|
Total assets |
$ 2,307,571 |
$ 2,247,167 |
Cash and cash equivalents |
62,907 |
43,852 |
Trading securities |
4,439 |
4,095 |
Securities available for sale, at estimated
fair value |
1,212,319 |
1,244,313 |
Securities held to maturity |
4,421 |
5,060 |
Loans held for investment, net |
902,564 |
827,591 |
Allowance for loan losses |
(23,520) |
(21,819) |
Net loans held for investment |
879,044 |
805,772 |
Non-performing loans(1) |
58,017 |
60,890 |
Other real estate owned |
118 |
171 |
Bank owned life insurance |
76,292 |
74,805 |
Federal Home Loan Bank of New York stock, at
cost |
8,631 |
9,784 |
|
|
|
Borrowed funds |
444,522 |
391,237 |
Deposits |
1,448,569 |
1,372,842 |
Total liabilities |
1,909,400 |
1,850,450 |
Total stockholders' equity |
$ 398,171 |
$ 396,717 |
|
|
|
Total shares outstanding |
42,370,928 |
43,316,021 |
|
|
|
|
Quarter
Ended |
Six Months
Ended |
|
June
30, |
June
30, |
|
2011 |
2010 |
2011 |
2010 |
Selected Operating
Data: |
|
|
|
|
Interest income |
$ 22,438 |
$ 22,032 |
$ 44,436 |
$ 43,039 |
Interest expense |
6,609 |
6,115 |
12,836 |
12,573 |
Net interest income before provision for loan
losses |
15,829 |
15,917 |
31,600 |
30,466 |
Provision for loan losses |
1,750 |
2,798 |
3,117 |
4,728 |
Net interest income after provision for loan
losses |
14,079 |
13,119 |
28,483 |
25,738 |
Non-interest income |
2,190 |
1,866 |
5,299 |
3,589 |
Non-interest expense |
9,584 |
8,457 |
19,537 |
17,578 |
Income before income tax expense |
6,685 |
6,528 |
14,245 |
11,749 |
Income tax expense |
2,338 |
2,342 |
4,928 |
4,182 |
Net income |
$ 4,347 |
$ 4,186 |
$ 9,317 |
$ 7,567 |
|
|
|
|
|
Basic earnings per share (2) |
$ 0.11 |
$ 0.10 |
$ 0.23 |
$ 0.18 |
Diluted earnings per share (2) |
$ 0.11 |
$ 0.10 |
$ 0.23 |
$ 0.18 |
|
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, |
|
2011 |
2010 |
2011 |
2010 |
Selected Financial
Ratios: |
|
|
|
|
Performance Ratios(3): |
|
|
|
|
Return on assets (ratio of net income to
average total assets) |
0.75 % |
0.80 % |
0.82 % |
0.74 % |
Return on equity (ratio of net income to
average equity) |
4.40 |
4.23 |
4.74 |
3.86 |
Average equity to average total
assets |
17.04 |
19.01 |
17.35 |
19.11 |
Interest rate spread |
2.65 |
2.91 |
2.70 |
2.80 |
Net interest margin |
2.90 |
3.23 |
2.96 |
3.14 |
Efficiency ratio(4) |
53.19 |
47.56 |
52.95 |
51.62 |
Non-interest expense to average total
assets |
1.65 |
1.62 |
1.72 |
1.71 |
Average interest-earning assets to
average interest-bearing liabilities |
121.46 |
125.70 |
121.92 |
125.97 |
Asset Quality Ratios: |
|
|
|
|
Non-performing assets to total
assets |
2.52 |
2.39 |
2.52 |
2.39 |
Non-performing loans to total loans held
for investment, net |
6.43 |
6.66 |
6.43 |
6.66 |
Allowance for loan losses to
non-performing loans |
40.54 |
37.13 |
40.54 |
37.13 |
Allowance for loan losses to total
loans |
2.61 |
2.47 |
2.61 |
2.47 |
Annualized net charge-offs to total
average loans |
0.11 |
0.44 |
0.33 |
0.28 |
Provision for loan losses as a multiple
of net charge-offs |
7.14 x |
3.40 x |
2.20 x |
4.64 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 40,599,400 and 41,417,662 average
shares outstanding for the three months ended June 30, 2011, and
June 30, 2010, respectively. Basic net income per common share
is calculated based on 40,848,467 and 41,462,961 average shares
outstanding for the six months ended June 30, 2011, and June 30,
2010, respectively. Diluted earnings per share is calculated
based on 40,980,691 and 41,783,730 average shares outstanding
for the three months ended June 30, 2011 and June 30, 2010,
respectively. Diluted earnings per share is calculated based
on 41,260,032 and 41,803,306 average shares outstanding for
the six months ended June 30, 2011 and June 30, 2010,
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, |
|
2011 |
2010 |
|
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
Loans (5) |
$876,389 |
$12,778 |
5.85 % |
$757,240 |
$12,098 |
6.41 % |
Mortgage-backed securities |
1,128,099 |
8,675 |
3.08 |
888,469 |
8,243 |
3.72 |
Other securities |
119,161 |
787 |
2.65 |
255,392 |
1,567 |
2.46 |
Federal Home Loan Bank of New York
stock |
10,104 |
121 |
4.80 |
6,475 |
63 |
3.90 |
Interest-earning deposits in financial
institutions |
52,652 |
77 |
0.59 |
68,078 |
60 |
0.35 |
Total interest-earning assets |
2,186,405 |
22,438 |
4.12 |
1,975,654 |
22,031 |
4.47 |
Non-interest-earning assets |
141,330 |
|
|
112,605 |
|
|
Total assets |
2,327,735 |
|
|
2,088,259 |
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Savings, NOW, and money market
accounts |
700,613 |
1,164 |
0.67 |
670,371 |
1,265 |
0.76 |
Certificates of deposit |
598,932 |
2,106 |
1.41 |
580,565 |
2,117 |
1.46 |
Total interest-bearing
deposits |
1,299,545 |
3,270 |
1.01 |
1,250,936 |
3,382 |
1.08 |
Borrowed funds |
500,548 |
3,339 |
2.68 |
320,783 |
2,733 |
3.42 |
Total
interest-bearing liabilities |
1,800,093 |
6,609 |
1.47 |
1,571,719 |
6,115 |
1.56 |
Non-interest bearing deposit accounts |
120,352 |
|
|
113,011 |
|
|
Accrued expenses and other
liabilities |
10,723 |
|
|
6,457 |
|
|
Total liabilities |
1,931,168 |
|
|
1,691,187 |
|
|
Stockholders' equity |
396,567 |
|
|
397,072 |
|
|
Total liabilities and stockholders'
equity |
2,327,735 |
|
|
2,088,259 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
$15,829 |
|
|
$15,916 |
|
Net interest rate spread (2) |
|
|
2.65 |
|
|
2.91 |
Net interest-earning assets (3) |
$386,312 |
|
|
$403,935 |
|
|
Net interest margin (4) |
|
|
2.90 % |
|
|
3.23 % |
Average interest-earning assets
to interest-bearing liabilities |
|
|
121.46 |
|
|
125.70 |
|
|
|
|
|
|
|
(1) Average yields and rates for
the three months ended June 30, 2011, and 2010 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. |
(5) Includes non-accruing
loans. |
|
NORTHFIELD BANCORP,
INC. |
ANALYSIS OF NET
INTEREST INCOME |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended June, |
|
2011 |
2010 |
|
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
Average Outstanding
Balance |
Interest |
Average Yield/ Rate
(1) |
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
Loans (5) |
$858,991 |
$25,252 |
5.93 % |
$745,891 |
$22,391 |
6.05 % |
Mortgage-backed securities |
1,099,390 |
17,092 |
3.14 |
898,788 |
17,308 |
3.88 |
Other securities |
134,822 |
1,757 |
2.63 |
241,014 |
3,068 |
2.57 |
Federal Home Loan Bank of New York
stock |
10,469 |
230 |
4.43 |
6,272 |
158 |
5.08 |
Interest-earning deposits in financial
institutions |
47,708 |
105 |
0.44 |
66,826 |
114 |
0.34 |
Total interest-earning assets |
2,151,380 |
44,436 |
4.17 |
1,958,791 |
43,039 |
4.43 |
Non-interest-earning assets |
134,861 |
|
|
111,381 |
|
|
Total assets |
2,286,241 |
|
|
2,070,172 |
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
Savings, NOW, and money market
accounts |
697,955 |
2,298 |
0.66 |
654,026 |
2,685 |
0.83 |
Certificates of deposit |
570,312 |
3,989 |
1.41 |
584,598 |
4,649 |
1.60 |
Total interest-bearing
deposits |
1,268,267 |
6,287 |
1.00 |
1,238,624 |
7,334 |
1.19 |
Borrowed funds |
496,276 |
6,549 |
2.66 |
316,315 |
5,239 |
3.34 |
Total
interest-bearing liabilities |
1,764,543 |
12,836 |
1.47 |
1,554,939 |
12,573 |
1.63 |
Non-interest bearing deposit accounts |
115,346 |
|
|
111,335 |
|
|
Accrued expenses and other
liabilities |
9,706 |
|
|
8,278 |
|
|
Total liabilities |
1,889,595 |
|
|
1,674,552 |
|
|
Stockholders' equity |
396,646 |
|
|
395,620 |
|
|
Total liabilities and stockholders'
equity |
2,286,241 |
|
|
2,070,172 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
$31,600 |
|
|
$30,466 |
|
Net interest rate spread (2) |
|
|
2.70 |
|
|
2.80 |
Net interest-earning assets (3) |
$386,837 |
|
|
$403,852 |
|
|
Net interest margin (4) |
|
|
2.96 % |
|
|
3.14 % |
Average interest-earning
assets to interest-bearing liabilities |
|
121.92 |
|
|
125.97 |
|
|
|
|
|
|
|
(1) Average yields and rates for
the six months ended June 30, 2011, and 2010 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. |
(5) Includes non-accruing
loans. |
CONTACT: Steven M. Klein
Chief Financial Officer
Tel: (732) 499-7200 ext. 2510
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