NORTHFIELD BANCORP, INC. (Nasdaq:NFBK), the
holding company for Northfield Bank, reported diluted earnings per
common share of $0.28 for the quarter ended September 30,
2019, as compared to $0.17 per diluted share for the quarter ended
June 30, 2019, and $0.19 per diluted share for the quarter
ended September 30, 2018. For both nine month periods ended
September 30, 2019, and September 30, 2018, diluted
earnings per common share totaled $0.64. Earnings for the quarter
and nine months ended September 30, 2019, included $2.4
million, or $0.05 per diluted share, of tax-exempt income from bank
owned life insurance proceeds in excess of the cash surrender value
of the policies, as well as $1.6 million, after tax, or $0.03 per
diluted share, of income related to recoveries on loans previously
charged-off. Earnings for the nine months ended September 30,
2018, included excess tax benefits related to the exercise or
vesting of equity awards of $2.2 million, or $0.05 per diluted
share. There were no material excess tax benefits for the quarter
or nine months ended September 30, 2019, or for the quarter
ended June 30, 2019.
Commenting on the quarter, Steven M. Klein, the
Company’s President and Chief Executive Officer noted, “We reported
strong financial results for the three-months ended September 30,
2019, as we remained focused on investing in our people, and the
customer experience, to build both retail and business banking
relationships and stockholder value.” Mr. Klein continued,
“For the quarter, we prudently grew both loans and deposits,
managed our net interest margin and operating expenses in a highly
competitive operating environment, and deployed our strong capital
base through stock repurchases to produce increased earnings for
our stockholders.”
Mr. Klein further noted, “I’m pleased to
announce that the Board of Directors has declared a dividend of
$0.11 per common share, payable on November 20, 2019, to
stockholders of record on November 6, 2019.”
Results of Operations
Comparison of Operating Results for the Nine
Months Ended September 30, 2019 and 2018
Net income was $30.1 million for both the nine
months ended September 30, 2019 and September 30, 2018.
Significant variances from the comparable prior year period are as
follows: a $3.1 million increase in non-interest income, a
$2.8 million decrease in the provision for loan losses, a $3.6
million increase in non-interest expense, and a $2.4
million increase in income tax expense.
Net interest income remained largely unchanged
at $83.3 million for the nine months ended September 30, 2019,
compared to $83.2 million for the nine months ended
September 30, 2018, as a $396.0 million, or 10.1%, increase in
our average interest-earning assets was offset by a 26 basis point
decrease in our net interest margin to 2.58%. The decrease in net
interest margin was primarily due to the increased cost of our
interest-bearing liabilities, which increased 42 basis points to
1.52% for the nine months ended September 30, 2019, from 1.10%
for the nine months ended September 30, 2018, while yields on
interest-earning assets increased 10 basis points to 3.80% for the
nine months ended September 30, 2019, from 3.70% for the nine
months ended September 30, 2018. The increase in yields on
interest-earning assets was primarily driven by higher yields on
loans and securities. The increase in our average interest-earning
assets was primarily due to increases in average loans outstanding
of $100.2 million, average mortgage-backed securities of $201.0
million, and average other securities of $100.7 million. Net
interest income for the nine months ended September 30, 2019
included loan prepayment income of $1.2 million as compared to $1.5
million for the nine months ended September 30, 2018. Also
included in net interest income for the nine months ended
September 30, 2019 is $314,000 of interest income recorded
from the pay-off of a non-accrual loan.
The provision for loan losses decreased by $2.8
million to a negative provision of $750,000 for the nine months
ended September 30, 2019, compared to a provision of $2.0
million for the nine months ended September 30, 2018. The
negative provision was primarily related to a $1.8 million recovery
on a loan previously charged-off, partially offset by a $521,000
charge-off on an impaired commercial real estate loan, and loan
growth. Net recoveries for the nine months ended September 30,
2019, were $1.3 million compared to net charge-offs of $481,000 for
the nine months ended September 30, 2018.
Non-interest income increased $3.1 million, or
41.8%, to $10.6 million for the nine months ended
September 30, 2019, from $7.5 million for the nine months
ended September 30, 2018, primarily due to an increase of $2.3
million in income on bank owned life insurance, attributable to
insurance proceeds in excess of the related cash surrender value of
the policies, and a $901,000 increase in gains on securities
transactions, net (which include gains on available-for-sale debt
securities and gains on trading securities). For the nine months
ended September 30, 2019, gains on securities transactions,
net, included gains of $1.5 million related to the Company’s
trading portfolio, compared to gains of $714,000 in the comparative
prior year period. The trading portfolio is utilized to fund the
Company’s deferred compensation obligation to certain employees and
directors of the Company's deferred compensation plan (the “Plan”).
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
compensation expense, reflecting the change in the Company’s
obligations under the Plan.
Non-interest expense increased $3.6 million, or
6.9%, to $54.8 million for the nine months ended September 30,
2019, compared to $51.3 million for the nine months ended
September 30, 2018. This is due primarily to a $2.2 million
increase in employee compensation and benefits, $742,000 of which
is related to the Company's deferred compensation plan, which is
described above and has no effect on net income, with the remainder
attributable to increased costs associated with new hires related
to a branch opening and new lending personnel, merit increases
effective January 1, 2019, and higher medical benefit cost,
partially offset by a decrease in equity award expense.
Additionally, there was a $425,000 increase in occupancy costs,
primarily attributable to higher rent expense related to a new
branch opening, an increase of $690,000 in data processing costs,
related to our continued strategic initiative to enhance our
customers experience and growth in the number of accounts we
service, and an increase of $1.0 million in advertising expense,
attributable to the timing of advertising programs and increased
expenditure focused on driving growth. These increases were
partially offset by decreases of $275,000 in federal insurance
premiums due to a reduction in our deposit insurance assessment as
a result of the utilization of credits, and $513,000 in other
non-interest expense, primarily related to a decrease in Directors'
equity award expense. Non-interest expense included equity award
expense of $2.9 million for the nine months ended
September 30, 2019, as compared to $4.5 million for the nine
months ended September 30, 2018. The lower expense in the
current period is primarily attributable to equity awards that were
fully vested on June 11, 2019.
On September 16, 2019, the Company announced its
intention to combine three branch offices (two located in Brooklyn,
New York, and one in Milltown, New Jersey) into existing nearby
Northfield Bank locations. The branch consolidations are expected
to occur on December 31, 2019, and the Company expects to record a
one-time charge in occupancy costs of approximately $1.2 million in
the fourth quarter of 2019, attributable to accelerated lease
rental expense and accelerated leasehold amortization expense.
The Company recorded income tax expense of $9.7
million for the nine months ended September 30, 2019, compared
to $7.3 million for the nine months ended September 30, 2018.
The effective tax rate for the nine months ended September 30,
2019, was 24.4% compared to 19.5% for the nine months ended
September 30, 2018. The increase was primarily due to lower
excess tax benefits related to the exercise or vesting of equity
awards and changes in New Jersey tax laws, partially offset by $2.4
million of tax-exempt income from bank owned life insurance
proceeds in excess of the cash surrender value of the policies.
There were no material excess tax benefits recorded for the nine
months ended September 30, 2019. Excess tax benefits were $2.2
million for the nine months ended September 30, 2018. Excess
tax benefits will fluctuate throughout the year based on the
Company's stock price and timing of employee stock option exercises
and vesting of other share-based awards.
On May 15, 2019 the State of New Jersey issued a
tax technical bulletin which gave guidance on which entities are to
be included in a combined group. Real estate investment trusts and
investment companies will be excluded from the combined group. They
will continue to file separate company New Jersey tax returns. As a
result of this guidance the Company recorded an additional $559,000
of state tax expense net of federal benefit for the nine months
ended September 30, 2019. The $559,000 increase was comprised of
$773,000 of current tax expense, partially offset by a write-up of
deferred tax assets of $214,000.
Comparison of Operating Results for the Three
Months Ended September 30, 2019 and 2018
Net income was $13.1 million and $9.1 million
for the quarters ended September 30, 2019, and
September 30, 2018, respectively. Significant variances from
the comparable prior year quarter are as follows: an
$896,000 increase in net interest income, a $2.6 million
decrease in the provision for loan losses, a $2.1 million increase
in non-interest income, a $231,000 decrease in non-interest
expense, and a $1.8 million increase in income tax
expense.
Net interest income for the quarter ended
September 30, 2019, increased $896,000, or 3.2%,
primarily due to a $425.9 million, or 10.6%, increase in our
average interest-earning assets, partially offset by an 18 basis
point decrease in our net interest margin to 2.57% from 2.75% for
the quarter ended September 30, 2018. The increase in average
interest-earning assets was primarily due to increases in average
loans outstanding of $127.3 million, average mortgage-backed
securities of $267.3 million, and average other securities of $47.3
million, partially offset by a $20.5 million decrease in average
interest-earning deposits in financial institutions. The decrease
in net interest margin was primarily due to the increased cost of
our interest-bearing liabilities, which increased 32 basis points
to 1.55% for the quarter ended September 30, 2019, from 1.23%
for the quarter ended September 30, 2018, while yields earned
on interest-earning assets increased 10 basis points to 3.82% for
the quarter ended September 30, 2019, from 3.72% for the
quarter ended September 30, 2018. The increase in yields
earned on interest-earning assets was driven by higher yields on
loans and securities. Net interest income for the quarter ended
September 30, 2019, included loan prepayment income of
$596,000 as compared to $367,000 for the quarter ended
September 30, 2018. Also included in net interest income in
the current quarter is $314,000 of interest income recorded from
the pay-off of a non-accrual loan.
The provision for loan losses decreased by
$2.6 million to a negative provision of $1.3 million for the
quarter ended September 30, 2019, from a provision of $1.3
million for the quarter ended September 30, 2018. The negative
provision was primarily related to a $1.8 million recovery on a
loan previously charged off, partially offset by a $514,000
charge-off on an impaired commercial real estate loan, and loan
growth. Net recoveries were $1.5 million for the quarter ended
September 30, 2019, compared to net charge-offs of $499,000
for the quarter ended September 30, 2018.
Non-interest income increased $2.1 million, or
79.5%, to $4.7 million for the quarter ended September 30,
2019, from $2.6 million for the quarter ended September 30,
2018, primarily due to an increase of $2.3 million in income on
bank owned life insurance, attributable to insurance proceeds in
excess of the related cash surrender values of the policies, and a
decrease of $268,000 in gains on securities transactions, net
(which include gains on available-for-sale debt securities and
gains on trading securities). For the quarter ended
September 30, 2019, gains on securities transactions, net,
included gains of $28,000 related to the Company’s trading
portfolio, compared to gains of $412,000 in the comparative prior
year quarter. As previously noted, the trading portfolio is
utilized to fund the Company’s deferred compensation obligation to
certain employees and directors of the Company's deferred
compensation plan, and 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.
Non-interest expense decreased by $231,000, or
1.4%, to $16.9 million for the quarter ended September 30,
2019, from $17.1 million for the quarter ended September 30,
2018. The decrease was due primarily to a decrease of $410,000 in
compensation and employee benefits, $384,000 of which is related to
the Company's deferred compensation plan, which is described above
and has no effect on net income, lower equity award expense, and
lower medical benefit costs, partially offset by higher salary
expense. Additionally, there were decreases of $236,000 in federal
insurance premiums due to a reduction in our deposit insurance
assessment as a result of the utilization of credits, partially
offset by an increase in our premium base, and $296,000 in other
non-interest expense, primarily related to lower Directors' equity
award expense. Partially offsetting the decreases were increases of
$364,000 in data processing costs and $185,000 in advertising
expense. Non-interest expense included equity award expense of
$425,000 and $1.4 million for the quarters ended September 30, 2019
and September 30, 2018, respectively. The lower expense in the
current quarter is primarily attributable to equity awards that
were fully vested on June 11, 2019.
The Company recorded income tax expense of $4.8
million for the quarter ended September 30, 2019, compared to
$3.1 million for the quarter ended September 30, 2018. The
effective tax rate for the quarter ended September 30, 2019,
was 26.9% compared to 25.3% for the quarter ended
September 30, 2018, the higher rate due in part to changes in
New Jersey tax laws discussed above, partially offset by $2.4
million of tax-exempt income from bank owned life insurance
proceeds in excess of the cash surrender value of the policies.
Comparison of Operating Results for the Three
Months Ended September 30, 2019, and June 30, 2019
Net income was $13.1 million and $8.2 million
for the quarters ended September 30, 2019, and June 30,
2019, respectively. Significant variances from the prior quarter
are as follows: a $1.7 million increase in net interest
income, a $1.8 million decrease in the provision for loan
losses, a $2.2 million increase in non-interest income, a $1.9
million decrease in non-interest expense, and a $2.6
million increase in income tax expense.
Net interest income for the quarter ended
September 30, 2019, increased $1.7 million, or 6.1%, primarily
due to a $173.3 million, or 4.1%, increase in our average
interest-earning assets, and a two basis point expansion in our net
interest margin to 2.57% from 2.55% for the quarter ended
June 30, 2019. The increase in our average interest-earning
assets was due primarily to increases in average loans outstanding
of $69.3 million, average mortgage-backed securities of $118.1
million, and average Federal Home Loan Bank of New York stock of
$5.0 million, partially offset by a decrease in average other
securities of $19.2 million. Net interest income for the quarter
ended September 30, 2019, included loan prepayment income of
$596,000, as compared to $174,000 for the quarter ended
June 30, 2019, and $314,000 of interest income recorded from
the pay-off of a non-accrual loan. Yields earned on
interest-earning assets increased five basis points to 3.82% for
the quarter ended September 30, 2019, from 3.77% for the
quarter ended June 30, 2019. The cost of our interest-bearing
liabilities increased two basis points to 1.55% for the current
quarter as compared to 1.53% for the prior quarter.
The provision for loan losses decreased by $1.8
million to a negative provision of $1.3 million for the quarter
ended September 30, 2019, from a provision of $491,000 for the
quarter ended June 30, 2019. The negative provision was
primarily related to a $1.8 million recovery on a loan previously
charged off, partially offset by a $514,000 charge-off on an
impaired commercial real estate loan. Net recoveries were $1.5
million for the quarter ended September 30, 2019, compared to
net charge-offs of $145,000 for the quarter ended June 30,
2019.
Non-interest income increased $2.2 million to
$4.7 million for the quarter ended September 30, 2019, from
$2.6 million for the quarter ended June 30, 2019. This
increase was primarily due to a $2.4 million increase in income on
bank owned life insurance, attributable to insurance proceeds in
excess of the related cash surrender values of the policies,
partially offset by a decrease of $251,000 in gains on securities
transactions, net (which include gains on available-for-sale debt
securities and gains on trading securities). For the quarter
ended September 30, 2019, gains on securities transactions,
net, included gains of $28,000 related to the Company’s trading
portfolio, compared to gains of $343,000 in the quarter ended June
30, 2019.
Non-interest expense decreased $1.9 million, or
10.0%, to $16.9 million for the quarter ended September 30,
2019, from $18.8 million for the quarter ended June 30, 2019,
primarily due to a decrease of $804,000 in employee compensation
and benefits, $315,000 of which is related to the Company's
deferred compensation plan (previously discussed) which has no
effect on net income, lower equity award expense, and lower medical
benefit costs, partially offset by higher salary expense.
Additionally, there were decreases of $585,000 in advertising
expense, due to the timing of our advertising programs, $250,000 in
federal insurance premiums, due to a reduction in our deposit
insurance assessment as a result of the utilization of credits,
partially offset by increases in premium base, and $428,000 in
other non-interest expense, primarily lower Directors' equity award
expense. Included in non-interest expense for the quarters ended
September 30, 2019, and June 30, 2019, is total equity award
expense of $425,000 and $1.1million, respectively, the lower
expense in the current quarter being primarily attributable to
equity awards that were fully vested on June 11, 2019.
The Company recorded income tax expense of $4.8
million for the quarter ended September 30, 2019, compared to
$2.3 million for the quarter ended June 30, 2019. The
effective tax rate for the quarter ended September 30, 2019
was 26.9% compared to 21.7% for the quarter ended June 30,
2019, the increase being primarily due to tax deficiencies related
to the exercise or vesting of equity awards recorded as income tax
expense in the current quarter, as compared to excess tax benefits
recorded in the prior quarter, partially offset by $2.4 million of
tax-exempt income from bank owned life insurance proceeds in excess
of the cash surrender value of the policies.
Financial Condition
Total assets increased $399.9 million, or 9.1%,
to $4.81 billion at September 30, 2019, from $4.41 billion at
December 31, 2018. The increase was primarily due to increases
in available-for sale debt securities of $251.5 million, or 31.1%,
loans held-for-investment, net, of $110.0 million, or 3.4%, Federal
Home Loan Bank of New York stock of $9.6 million, or 42.6%, and the
recording of our operating leased assets of $41.2 million from the
adoption of a new lease accounting standard, Accounting Standards
Update (ASU) No. 2016-02 Leases (Topic 842) on January 1, 2019. The
new lease standard requires us to recognize on the balance sheet
right-of-use assets, which approximate the present value of our
remaining lease payments. Partially offsetting these increases was
a decrease in cash and cash equivalents of $8.1 million, or 10.4%,
and a decrease in other assets of $6.8 million, or 21.5%.
As of September 30, 2019, we estimate that
our non-owner occupied commercial real estate concentration (as
defined by regulatory guidance issued in 2006) to total risk-based
capital was approximately 441%. Management believes that Northfield
Bank (the Bank) has implemented appropriate risk management
practices including risk assessments, board approved underwriting
policies and related procedures which include monitoring bank
portfolio performance, performing market analysis (economic and
real estate), and stressing of the Bank’s commercial real estate
portfolio under severe adverse economic conditions. Although
management believes the Bank has implemented appropriate policies
and procedures to manage our commercial real estate concentration
risk, the Bank’s regulators could require us to implement
additional policies and procedures or could require us to maintain
higher levels of regulatory capital, which might adversely affect
our loan originations, ability to pay dividends, and
profitability.
Cash and cash equivalents decreased by $8.1
million, or 10.4%, to $69.7 million at September 30, 2019,
from $77.8 million at December 31, 2018. Balances fluctuate
based on the timing of receipt of security and loan repayments and
the redeployment of cash into higher-yielding assets such as loans
and securities, or the funding of deposit outflows or borrowing
maturities.
Loans held-for-investment, net, increased $110.0
million to $3.36 billion at September 30, 2019, from
$3.25 billion at December 31, 2018, primarily due to an
increase in originated loans held-for-investment of $180.8 million,
partially offset by decreases in acquired loans of $68.1 million
and purchased credit-impaired (“PCI”) loans of $2.7 million.
Originated loans held-for-investment, net, totaled $2.86 billion at
September 30, 2019, as compared to $2.68 billion at
December 31, 2018. The increase was primarily due to an
increase in multifamily real estate loans of $167.8 million, or
8.7%, to $2.10 billion at September 30, 2019, from $1.93
billion at December 31, 2018.
On June 12, 2019, New York City announced
revised rent laws that included: repealing provisions that remove
units from rent stabilization when rent crosses a high threshold or
when a unit becomes vacant; or if the tenant’s income is $200,000
or higher in the preceding two years. The updated laws also
eliminate a “vacancy bonus” provision which allows property owners
to raise rents as much as 20% each time a unit becomes vacant. At
September 30, 2019, the Company has approximately $398.0 million in
multifamily loans in New York City with tenants that have some form
of rent stabilization or rent control. The weighted average loan to
value (“LTV”) was 46.4% based on the current balance and the
collateral value at date of origination on this portfolio. The
highest LTV in this portfolio is 73.0%. All of the loans are
performing as agreed. Management will continue to evaluate the
effect of rent regulations on the collateral values.
The following tables detail our multifamily real
estate originations for the nine months ended September 30,
2019 and 2018 (dollars in thousands):
For the Nine Months Ended September 30, 2019 |
Multifamily Originations |
|
Weighted Average Interest Rate |
|
Weighted Average Loan-to-Value Ratio |
|
Weighted Average Months to Next Rate Change or Maturity for
Fixed Rate Loans |
|
(F)ixed or (V)ariable |
|
Amortization Term |
$ |
296,236 |
|
|
4.16 |
% |
|
56 |
% |
|
92 |
|
V |
|
10 to 30 Years |
36,178 |
|
|
4.36 |
% |
|
55 |
% |
|
241 |
|
F |
|
10 to 30 Years |
$ |
332,414 |
|
|
4.18 |
% |
|
56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2018 |
Multifamily Originations |
|
Weighted Average Interest Rate |
|
Weighted Average Loan-to-Value Ratio |
|
Weighted Average Months to Next Rate Change or Maturity for
Fixed Rate Loans |
|
(F)ixed or (V)ariable |
|
Amortization Term |
$ |
256,442 |
|
|
3.88 |
% |
|
64 |
% |
|
78 |
|
V |
|
25 to 30 Years |
12,365 |
|
|
4.17 |
% |
|
39 |
% |
|
181 |
|
F |
|
15 Years |
$ |
268,807 |
|
|
3.89 |
% |
|
63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans decreased by $68.1 million to
$478.0 million at September 30, 2019, from $546.2 million at
December 31, 2018, primarily due to paydowns of one-to-four
family residential and multifamily loans with weighted average
interest rates (net of the servicing fee retained by the
originating bank) of 3.57% and 3.08%, respectively, partially
offset by purchases of one-to-four family residential loan pools
totaling $44.2 million.
The following table provides the details of the loan pools
purchased during the nine months ended September 30, 2019 (dollars
in thousands):
Purchase Amount |
|
Loan Type |
|
Weighted Average Interest Rate(1) |
|
Weighted Average Loan-to-Value Ratio |
|
Weighted Average Months to Next Rate Change or Maturity for
Fixed Rate Loans |
|
(F)ixed or (V)ariable |
|
Original Amortization Term |
$ |
4,230 |
|
|
Residential |
|
4.19 |
% |
|
70.5 |
% |
|
324 |
|
F |
|
15 - 30 Years |
17,253 |
|
|
Residential |
|
3.69 |
% |
|
63.0 |
% |
|
78 |
|
V |
|
30 Years |
19,448 |
|
|
Residential |
|
4.19 |
% |
|
71.3 |
% |
|
333 |
|
F |
|
30 Years |
3,262 |
|
|
Residential |
|
3.93 |
% |
|
65.5 |
% |
|
346 |
|
F |
|
30 Years |
$ |
44,193 |
|
|
|
|
3.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of servicing fee retained by the originating bank
The geographic locations of the properties
collateralizing the loans purchased in the table above are as
follows: 83% in Massachusetts, 13% in New York, and 4% in New
Jersey.
PCI loans totaled $17.4 million at
September 30, 2019, as compared to $20.1 million at
December 31, 2018. The majority of the PCI loan balance
consists of loans acquired as part of a Federal Deposit Insurance
Corporation-assisted transaction. The Company accreted interest
income of $1.1 million and $3.1 million attributable to PCI loans
for the three and nine months ended September 30, 2019,
respectively, as compared to $1.0 million and $3.1 million for the
three and nine months ended September 30, 2018, respectively.
The Company’s available-for-sale debt securities
portfolio increased by $251.5 million, or 31.1%, to $1.06 billion
at September 30, 2019, from $808.0 million at
December 31, 2018. The increase was primarily attributable to
purchases of mortgage-backed and corporate securities, partially
offset by paydowns and sales. At September 30, 2019, $874.6
million of the portfolio consisted of residential mortgage-backed
securities issued or guaranteed by Fannie Mae, Freddie Mac, or
Ginnie Mae. In addition, the Company held $184.7 million in
corporate bonds, the majority of which were considered investment
grade at September 30, 2019, and $222,000 in municipal
bonds.
Other assets decreased $6.8 million, or 21.5%,
to $24.8 million at September 30, 2019, from $31.6 million at
December 31, 2018. The decrease was primarily attributable to
a decrease in net deferred tax assets associated with an increase
in net unrealized gains on our securities available-for-sale
portfolio.
Total liabilities increased $376.4 million, or
10.1%, to $4.12 billion at September 30, 2019, from $3.74
billion at December 31, 2018. The increase was primarily
attributable to an increase in deposits of $50.8 million,
securities sold under agreements to repurchase of $75.0 million,
other borrowings of $207.3 million, and lease liabilities of $45.2
million, attributable to capitalization of our operating leases as
a result of the adoption of ASU No. 2016-02, effective January 1,
2019.
Deposits increased $50.8 million, or 1.5%, to
$3.34 billion at September 30, 2019, as compared to $3.29
billion at December 31, 2018. The increase was attributable to
increases of $88.2 million in transaction accounts and $138.9
million in savings accounts, partially offset by decreases of $71.0
million in money market accounts, and $105.1 million in
certificates of deposit. Deposit account balances are summarized as
follows (dollars in thousands):
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
Transaction: |
|
|
|
|
|
Non-interest bearing checking |
$ |
399,237 |
|
|
$ |
386,784 |
|
|
$ |
395,375 |
|
Negotiable orders of withdrawal |
542,315 |
|
|
486,529 |
|
|
458,012 |
|
Total transaction |
941,552 |
|
|
873,313 |
|
|
853,387 |
|
Savings and Money market: |
|
|
|
|
|
Savings |
733,086 |
|
|
720,130 |
|
|
594,290 |
|
Money market |
670,904 |
|
|
702,405 |
|
|
741,939 |
|
Total savings |
1,403,990 |
|
|
1,422,535 |
|
|
1,336,229 |
|
Certificates of deposit: |
|
|
|
|
|
Brokered deposits |
253,651 |
|
|
237,908 |
|
|
275,398 |
|
$250,000 and under |
622,785 |
|
|
647,958 |
|
|
696,957 |
|
Over $250,000 |
115,331 |
|
|
118,477 |
|
|
124,541 |
|
Total certificates of deposit |
991,767 |
|
|
1,004,343 |
|
|
1,096,896 |
|
Total deposits |
$ |
3,337,309 |
|
|
$ |
3,300,191 |
|
|
$ |
3,286,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the table above are business and municipal deposit
account balances as follows (dollars in thousands):
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
Business customers |
$ |
517,670 |
|
|
$ |
506,727 |
|
|
$ |
468,166 |
|
Municipal customers |
$ |
363,574 |
|
|
$ |
322,369 |
|
|
$ |
337,053 |
|
Borrowings and securities sold under agreements
to repurchase increased to $691.2 million at September 30,
2019, from $408.9 million at December 31,
2018. Management utilizes borrowings to mitigate interest rate
risk, for short-term liquidity, and to a lesser extent as part of
leverage strategies. Management increased borrowings because
it was more cost effective than the incremental cost of
deposits.
The following is a table of term borrowing
maturities (excluding capitalized leases and overnight borrowings)
and the weighted average rate by year at September 30, 2019
(dollars in thousands):
Year |
|
Amount |
|
Weighted Average Rate |
2019 |
|
$180,000 |
|
2.15% |
2020 |
|
90,000 |
|
1.65% |
2021 |
|
145,000 |
|
1.94% |
2022 |
|
120,000 |
|
2.29% |
2023 |
|
87,500 |
|
2.89% |
Thereafter |
|
62,500 |
|
2.57% |
|
|
$685,000 |
|
2.20% |
|
|
|
|
|
Total stockholders’ equity increased by $23.5
million to $689.9 million at September 30, 2019, from $666.4
million at December 31, 2018. The increase was primarily
attributable to net income of $30.1 million for the nine months
ended September 30, 2019, a $14.3 million increase in
accumulated other comprehensive income associated with unrealized
gains on our debt securities available-for-sale portfolio, and a
$9.8 million increase in ESOP and equity award activity. The
increase was partially offset by $15.1 million in dividend payments
and $15.6 million in stock repurchases.
Asset Quality
The following table details total originated and
acquired (excluding PCI) non-accrual loans, non-performing loans,
non-performing assets, troubled debt restructurings on which
interest is accruing, and accruing loans 30 to 89
days delinquent at September 30, 2019, June 30,
2019, and December 31, 2018 (dollars in thousands):
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
Non-accrual loans: |
|
|
|
|
|
Held-for-investment |
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
Commercial |
$ |
8,310 |
|
|
$ |
9,234 |
|
|
$ |
7,291 |
|
One-to-four family residential |
895 |
|
|
1,026 |
|
|
1,129 |
|
Multifamily |
444 |
|
|
447 |
|
|
566 |
|
Home equity and lines of credit |
149 |
|
|
150 |
|
|
151 |
|
Commercial and industrial |
— |
|
|
— |
|
|
25 |
|
Total non-accrual loans |
9,798 |
|
|
10,857 |
|
|
9,162 |
|
Loans delinquent 90 days or
more and still accruing: |
|
|
|
|
|
Held-for-investment |
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
Commercial |
553 |
|
|
— |
|
|
— |
|
One-to-four family residential |
6 |
|
|
6 |
|
|
33 |
|
Home equity and lines of credit |
37 |
|
|
20 |
|
|
— |
|
Total loans delinquent 90 days or more and still accruing |
596 |
|
|
26 |
|
|
33 |
|
Total non-performing
assets |
$ |
10,394 |
|
|
$ |
10,883 |
|
|
$ |
9,195 |
|
Non-performing loans to total loans |
0.31 |
% |
|
0.33 |
% |
|
0.28 |
% |
Non-performing assets to total assets |
0.22 |
% |
|
0.22 |
% |
|
0.21 |
% |
Loans subject to
restructuring agreements and still accruing |
$ |
14,316 |
|
|
$ |
14,508 |
|
|
$ |
16,390 |
|
Accruing loans 30 to
89 days delinquent |
$ |
5,348 |
|
|
$ |
4,291 |
|
|
$ |
8,562 |
|
Accruing Loans 30 to 89 Days Delinquent
Loans 30 to 89 days delinquent and on accrual
status totaled $5.3 million, $4.3 million, and $8.6 million at
September 30, 2019, June 30, 2019, and December 31,
2018, respectively. The following table sets forth delinquencies
for accruing loans by type and by amount at September 30, 2019
and December 31, 2018 (dollars in thousands):
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
Held-for-investment |
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
Commercial |
$ |
2,475 |
|
|
$ |
2,237 |
|
|
$ |
2,377 |
|
One-to-four family residential |
2,235 |
|
|
1,799 |
|
|
4,120 |
|
Multifamily |
431 |
|
|
— |
|
|
2,018 |
|
Home equity and lines of credit |
112 |
|
|
— |
|
|
— |
|
Commercial and industrial loans |
87 |
|
|
248 |
|
|
45 |
|
Other loans |
8 |
|
|
7 |
|
|
2 |
|
Total delinquent accruing loans held-for-investment |
$ |
5,348 |
|
|
$ |
4,291 |
|
|
$ |
8,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PCI Loans (Held-for-Investment)
At September 30, 2019, 6.5% of PCI loans
were past due 30 to 89 days, and 23.5% were past due 90 days or
more, as compared to 10.0% and 23.3%, respectively, at
December 31, 2018.
About Northfield Bank
Northfield Bank, founded in 1887, operates 40
full-service banking offices in Staten Island and Brooklyn, New
York, and Hunterdon, Middlesex, Mercer, 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.
(Tables follow)
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 Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Selected Financial
Ratios: |
|
|
|
|
|
|
|
|
|
Performance
Ratios(1) |
|
|
|
|
|
|
|
|
|
Return on assets (ratio of net
income to average total assets) (7) (8) |
1.10% |
|
0.84% |
|
0.72% |
|
0.87% |
|
0.97% |
Return on equity (ratio of net
income to average equity) (7) (8) |
7.59 |
|
5.51 |
|
4.84 |
|
5.92 |
|
6.22 |
Average equity to average total
assets |
14.44 |
|
15.32 |
|
14.86 |
|
14.75 |
|
15.57 |
Interest rate spread |
2.27 |
|
2.49 |
|
2.24 |
|
2.28 |
|
2.60 |
Net interest margin |
2.57 |
|
2.75 |
|
2.55 |
|
2.58 |
|
2.84 |
Efficiency ratio(2) (8) |
50.28 |
|
55.95 |
|
63.08 |
|
58.37 |
|
56.51 |
Non-interest expense to average
total assets |
1.41 |
|
1.59 |
|
1.64 |
|
1.59 |
|
1.65 |
Non-interest expense to average
total interest-earning assets |
1.50 |
|
1.69 |
|
1.76 |
|
1.70 |
|
1.75 |
Average interest-earning assets
to average interest-bearing liabilities |
123.91 |
|
127.37 |
|
125.20 |
|
124.86 |
|
128.23 |
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Non-performing assets to total
assets |
0.22 |
|
0.23 |
|
0.23 |
|
0.22 |
|
0.23 |
Non-performing loans(3) to
total loans(4) |
0.31 |
|
0.31 |
|
0.33 |
|
0.31 |
|
0.31 |
Allowance for loan losses to
non-performing loans held-for-investment |
270.02 |
|
276.31 |
|
255.74 |
|
270.02 |
|
276.31 |
Allowance for loan losses to
originated loans held-for-investment, net(5) |
0.94 |
|
1.03 |
|
0.95 |
|
0.94 |
|
1.03 |
Allowance for loan losses to
total loans held-for-investment, net(6) |
0.84 |
|
0.86 |
|
0.83 |
|
0.84 |
|
0.86 |
(1) Annualized when appropriate.(2) The
efficiency ratio represents non-interest expense divided by the sum
of net interest income and non-interest income.(3)
Non-performing loans consist of non-accruing loans and loans 90
days or more past due and still accruing (excluding PCI loans), and
are included in total loans held-for-investment,
net.(4) Includes originated loans held-for-investment,
PCI loans, and acquired loans.(5) Excludes PCI loans
and acquired loans held-for-investment, and related reserve
balances.(6) Includes PCI and acquired loans
held-for-investment.(7) There were no material tax benefits
in the three or nine months ended September 30, 2019. The three
months ended June 30, 2019, includes excess tax benefits of
$193,000 related to the exercise or vesting of equity awards. The
nine months ended September 30, 2018 includes excess tax benefits
of $2.2 million related to the exercise or vesting of equity
awards. Excess tax benefits will fluctuate based on the Company's
stock price and timing of employee stock option exercises and
vesting of other share-based awards.(8) The three and nine months
ended September 30, 2019, includes tax-exempt income of $2.4
million from bank owned life insurance proceeds in excess of the
cash surrender value of the policies.
NORTHFIELD BANCORP,
INC.CONSOLIDATED BALANCE SHEETS(Dollars in thousands,
except share and per share amounts) (unaudited)
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
ASSETS: |
|
|
|
|
|
Cash and due from banks |
$ |
17,487 |
|
|
$ |
14,156 |
|
|
$ |
15,147 |
|
Interest-bearing deposits in
other financial institutions |
52,165 |
|
|
32,751 |
|
|
62,615 |
|
Total cash and cash
equivalents |
69,652 |
|
|
46,907 |
|
|
77,762 |
|
Trading securities |
10,375 |
|
|
10,214 |
|
|
8,968 |
|
Debt securities
available-for-sale, at estimated fair value |
1,059,560 |
|
|
1,049,660 |
|
|
808,031 |
|
Debt securities
held-to-maturity, at amortized cost |
8,817 |
|
|
8,872 |
|
|
9,505 |
|
Equity securities |
2,288 |
|
|
2,328 |
|
|
1,280 |
|
Originated loans
held-for-investment, net |
2,859,704 |
|
|
2,800,816 |
|
|
2,678,877 |
|
Loans acquired |
478,009 |
|
|
519,885 |
|
|
546,150 |
|
Purchased credit-impaired
(PCI) loans held-for-investment |
17,435 |
|
|
18,077 |
|
|
20,143 |
|
Loans held-for-investment,
net |
3,355,148 |
|
|
3,338,778 |
|
|
3,245,170 |
|
Allowance for loan losses |
(28,066 |
) |
|
(27,832 |
) |
|
(27,497 |
) |
Net loans
held-for-investment |
3,327,082 |
|
|
3,310,946 |
|
|
3,217,673 |
|
Accrued interest
receivable |
13,818 |
|
|
14,116 |
|
|
12,959 |
|
Bank owned life insurance |
154,204 |
|
|
155,939 |
|
|
154,135 |
|
Federal Home Loan Bank of New
York stock, at cost |
32,105 |
|
|
32,330 |
|
|
22,517 |
|
Operating lease right-of-use
assets |
41,228 |
|
|
42,377 |
|
|
— |
|
Premises and equipment,
net |
25,967 |
|
|
25,700 |
|
|
25,605 |
|
Goodwill |
38,411 |
|
|
38,411 |
|
|
38,411 |
|
Other assets |
24,804 |
|
|
30,482 |
|
|
31,586 |
|
Total
assets |
$ |
4,808,311 |
|
|
$ |
4,768,282 |
|
|
$ |
4,408,432 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
3,337,309 |
|
|
$ |
3,300,191 |
|
|
$ |
3,286,512 |
|
Securities sold under
agreements to repurchase |
75,000 |
|
|
75,000 |
|
|
— |
|
Federal Home Loan Bank
advances and other borrowings |
616,161 |
|
|
620,105 |
|
|
408,891 |
|
Lease liabilities |
45,196 |
|
|
46,321 |
|
|
— |
|
Advance payments by borrowers
for taxes and insurance |
18,751 |
|
|
20,817 |
|
|
18,007 |
|
Accrued expenses and other
liabilities |
25,954 |
|
|
24,755 |
|
|
28,583 |
|
Total
liabilities |
4,118,371 |
|
|
4,087,189 |
|
|
3,741,993 |
|
Total stockholders’
equity |
689,940 |
|
|
681,093 |
|
|
666,439 |
|
Total liabilities and
stockholders’ equity |
$ |
4,808,311 |
|
|
$ |
4,768,282 |
|
|
$ |
4,408,432 |
|
|
|
|
|
|
|
Total shares outstanding |
49,154,878 |
|
|
49,112,139 |
|
|
49,635,673 |
|
Tangible book value per share
(1) |
$ |
13.24 |
|
|
$ |
13.07 |
|
|
$ |
12.63 |
|
(1) Tangible book value per share is
calculated based on total stockholders' equity, excluding
intangible assets (goodwill and core deposit intangibles), divided
by total shares outstanding as of the balance sheet date. Core
deposit intangibles were $833,000, $899,000, and $1.0 million at
September 30, 2019, June 30, 2019, and December 31, 2018,
respectively, and are included in other assets.
NORTHFIELD BANCORP,
INC.CONSOLIDATED STATEMENT OF INCOME(Dollars in thousands,
except share and per share amounts) (unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30 |
|
September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Interest
income: |
|
|
|
|
|
|
|
|
|
Loans |
$ |
35,285 |
|
|
$ |
32,443 |
|
|
$ |
33,308 |
|
|
$ |
101,183 |
|
|
$ |
94,686 |
|
Mortgage-backed securities |
5,409 |
|
|
3,475 |
|
|
4,599 |
|
|
14,082 |
|
|
9,269 |
|
Other securities |
1,511 |
|
|
1,104 |
|
|
1,699 |
|
|
5,075 |
|
|
2,427 |
|
Federal Home Loan Bank of New York dividends |
396 |
|
|
428 |
|
|
340 |
|
|
1,138 |
|
|
1,240 |
|
Deposits in other financial institutions |
246 |
|
|
277 |
|
|
247 |
|
|
1,028 |
|
|
722 |
|
Total interest income |
42,847 |
|
|
37,727 |
|
|
40,193 |
|
|
122,506 |
|
|
108,344 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
10,516 |
|
|
7,593 |
|
|
10,549 |
|
|
31,312 |
|
|
18,854 |
|
Borrowings |
3,511 |
|
|
2,210 |
|
|
2,485 |
|
|
7,885 |
|
|
6,252 |
|
Total interest expense |
14,027 |
|
|
9,803 |
|
|
13,034 |
|
|
39,197 |
|
|
25,106 |
|
Net interest income |
28,820 |
|
|
27,924 |
|
|
27,159 |
|
|
83,309 |
|
|
83,238 |
|
(Recovery)/provision for loan
losses |
(1,300 |
) |
|
1,304 |
|
|
491 |
|
|
(750 |
) |
|
2,008 |
|
Net interest income after
provision for loan losses |
30,120 |
|
|
26,620 |
|
|
26,668 |
|
|
84,059 |
|
|
81,230 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
Fees and service charges for customer services |
1,286 |
|
|
1,241 |
|
|
1,207 |
|
|
3,633 |
|
|
3,602 |
|
Income on bank owned life insurance |
3,268 |
|
|
919 |
|
|
907 |
|
|
5,071 |
|
|
2,787 |
|
Gains on available-for-sale debt securities, net |
123 |
|
|
7 |
|
|
59 |
|
|
337 |
|
|
178 |
|
Gains on trading securities, net |
28 |
|
|
412 |
|
|
343 |
|
|
1,457 |
|
|
714 |
|
Other |
28 |
|
|
58 |
|
|
50 |
|
|
115 |
|
|
205 |
|
Total non-interest income |
4,733 |
|
|
2,637 |
|
|
2,566 |
|
|
10,613 |
|
|
7,486 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
9,033 |
|
|
9,443 |
|
|
9,837 |
|
|
29,890 |
|
|
27,681 |
|
Occupancy |
3,084 |
|
|
3,015 |
|
|
3,120 |
|
|
9,486 |
|
|
9,061 |
|
Furniture and equipment |
280 |
|
|
239 |
|
|
265 |
|
|
804 |
|
|
747 |
|
Data processing |
1,517 |
|
|
1,153 |
|
|
1,437 |
|
|
4,217 |
|
|
3,527 |
|
Professional fees |
938 |
|
|
886 |
|
|
811 |
|
|
2,496 |
|
|
2,558 |
|
Advertising |
746 |
|
|
561 |
|
|
1,331 |
|
|
2,841 |
|
|
1,815 |
|
FDIC insurance |
5 |
|
|
241 |
|
|
255 |
|
|
537 |
|
|
812 |
|
Other |
1,266 |
|
|
1,562 |
|
|
1,694 |
|
|
4,552 |
|
|
5,065 |
|
Total non-interest
expense |
16,869 |
|
|
17,100 |
|
|
18,750 |
|
|
54,823 |
|
|
51,266 |
|
Income before income tax
expense |
17,984 |
|
|
12,157 |
|
|
10,484 |
|
|
39,849 |
|
|
37,450 |
|
Income tax
expense |
4,845 |
|
|
3,081 |
|
|
2,280 |
|
|
9,735 |
|
|
7,318 |
|
Net
income |
$ |
13,139 |
|
|
$ |
9,076 |
|
|
$ |
8,204 |
|
|
$ |
30,114 |
|
|
$ |
30,132 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.28 |
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.64 |
|
|
$ |
0.65 |
|
Diluted |
$ |
0.28 |
|
|
$ |
0.19 |
|
|
$ |
0.17 |
|
|
$ |
0.64 |
|
|
$ |
0.64 |
|
Basic average shares outstanding |
46,631,008 |
|
|
46,604,051 |
|
|
46,855,647 |
|
|
46,808,188 |
|
|
46,192,273 |
|
Diluted average shares outstanding |
46,979,214 |
|
|
47,294,645 |
|
|
47,271,690 |
|
|
47,178,690 |
|
|
47,137,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTHFIELD BANCORP, INC.ANALYSIS
OF NET INTEREST INCOME(Dollars in thousands) (unaudited)
|
For the Three Months Ended |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
|
Average Outstanding Balance |
|
Interest |
|
Average Yield/ Rate (1) |
|
Average Outstanding Balance |
|
Interest |
|
Average Yield/ Rate (1) |
|
Average Outstanding Balance |
|
Interest |
|
Average Yield/ Rate (1) |
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) |
$ |
3,329,893 |
|
|
$ |
35,285 |
|
|
4.20 |
% |
|
$ |
3,260,550 |
|
|
$ |
33,308 |
|
|
4.10 |
% |
|
$ |
3,202,616 |
|
|
$ |
32,443 |
|
|
4.02 |
% |
Mortgage-backed securities (3) |
833,071 |
|
|
5,409 |
|
|
2.58 |
|
|
714,930 |
|
|
4,599 |
|
|
2.58 |
|
|
565,783 |
|
|
3,475 |
|
|
2.44 |
|
Other securities (3) |
208,196 |
|
|
1,511 |
|
|
2.88 |
|
|
227,379 |
|
|
1,699 |
|
|
3.00 |
|
|
160,877 |
|
|
1,104 |
|
|
2.72 |
|
Federal Home Loan Bank of New York stock |
29,974 |
|
|
396 |
|
|
5.24 |
|
|
24,966 |
|
|
340 |
|
|
5.46 |
|
|
25,499 |
|
|
428 |
|
|
6.66 |
|
Interest-earning deposits in financial institutions |
48,841 |
|
|
246 |
|
|
2.00 |
|
|
48,885 |
|
|
247 |
|
|
2.03 |
|
|
69,327 |
|
|
277 |
|
|
1.59 |
|
Total interest-earning assets |
4,449,975 |
|
|
42,847 |
|
|
3.82 |
|
|
4,276,710 |
|
|
40,193 |
|
|
3.77 |
|
|
4,024,102 |
|
|
37,727 |
|
|
3.72 |
|
Non-interest-earning
assets |
303,406 |
|
|
|
|
|
|
298,223 |
|
|
|
|
|
|
244,191 |
|
|
|
|
|
Total assets |
$ |
4,753,381 |
|
|
|
|
|
|
$ |
4,574,933 |
|
|
|
|
|
|
$ |
4,268,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, and money market accounts |
$ |
1,940,764 |
|
|
$ |
5,281 |
|
|
1.08 |
% |
|
$ |
1,918,810 |
|
|
$ |
5,377 |
|
|
1.12 |
% |
|
$ |
1,620,562 |
|
|
$ |
2,691 |
|
|
0.66 |
% |
Certificates of deposit |
1,007,163 |
|
|
5,235 |
|
|
2.06 |
|
|
1,010,045 |
|
|
5,172 |
|
|
2.05 |
|
|
1,064,005 |
|
|
4,902 |
|
|
1.83 |
|
Total interest-bearing deposits |
2,947,927 |
|
|
10,516 |
|
|
1.42 |
|
|
2,928,855 |
|
|
10,549 |
|
|
1.44 |
|
|
2,684,567 |
|
|
7,593 |
|
|
1.12 |
|
Borrowed funds |
643,280 |
|
|
3,511 |
|
|
2.17 |
|
|
487,115 |
|
|
2,485 |
|
|
2.05 |
|
|
474,773 |
|
|
2,210 |
|
|
1.85 |
|
Total interest-bearing liabilities |
3,591,207 |
|
|
14,027 |
|
|
1.55 |
|
|
3,415,970 |
|
|
13,034 |
|
|
1.53 |
|
|
3,159,340 |
|
|
9,803 |
|
|
1.23 |
|
Non-interest bearing
deposits |
382,563 |
|
|
|
|
|
|
385,820 |
|
|
|
|
|
|
404,570 |
|
|
|
|
|
Accrued expenses and other
liabilities |
93,143 |
|
|
|
|
|
|
93,176 |
|
|
|
|
|
|
50,527 |
|
|
|
|
|
Total liabilities |
4,066,913 |
|
|
|
|
|
|
3,894,966 |
|
|
|
|
|
|
3,614,437 |
|
|
|
|
|
Stockholders' equity |
686,468 |
|
|
|
|
|
|
679,967 |
|
|
|
|
|
|
653,856 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
4,753,381 |
|
|
|
|
|
|
$ |
4,574,933 |
|
|
|
|
|
|
$ |
4,268,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
28,820 |
|
|
|
|
|
|
$ |
27,159 |
|
|
|
|
|
|
$ |
27,924 |
|
|
|
Net interest rate spread
(4) |
|
|
|
|
2.27 |
% |
|
|
|
|
|
2.24 |
% |
|
|
|
|
|
2.49 |
% |
Net interest-earning assets
(5) |
$ |
858,768 |
|
|
|
|
|
|
$ |
860,740 |
|
|
|
|
|
|
$ |
864,762 |
|
|
|
|
|
Net interest margin (6) |
|
|
|
|
2.57 |
% |
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.75 |
% |
Average interest-earning
assets to interest-bearing liabilities |
|
|
|
|
123.91 |
% |
|
|
|
|
|
125.20 |
% |
|
|
|
|
|
127.37 |
% |
(1) Average yields and rates are annualized.(2)
Includes non-accruing loans.(3) Securities
available-for-sale and other securities are reported at amortized
cost.(4) 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.(5)
Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.(6) Net
interest margin represents net interest income divided by average
total interest-earning assets.
|
For the Nine Months Ended |
|
September 30, 2019 |
|
September 30, 2018 |
|
Average Outstanding Balance |
|
Interest |
|
Average Yield/ Rate (1) |
|
Average Outstanding Balance |
|
Interest |
|
Average Yield/ Rate (1) |
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans (2) |
$ |
3,269,983 |
|
|
$ |
101,183 |
|
|
4.14 |
% |
|
$ |
3,169,780 |
|
|
$ |
94,686 |
|
|
3.99 |
% |
Mortgage-backed securities (3) |
725,879 |
|
|
14,082 |
|
|
2.59 |
|
|
524,905 |
|
|
9,269 |
|
|
2.36 |
|
Other securities (3) |
227,318 |
|
|
5,075 |
|
|
2.98 |
|
|
126,578 |
|
|
2,427 |
|
|
2.56 |
|
Federal Home Loan Bank of New York stock |
25,587 |
|
|
1,138 |
|
|
5.95 |
|
|
25,271 |
|
|
1,240 |
|
|
6.56 |
|
Interest-earning deposits in financial institutions |
63,261 |
|
|
1,028 |
|
|
2.17 |
|
|
69,528 |
|
|
722 |
|
|
1.39 |
|
Total interest-earning assets |
4,312,028 |
|
|
122,506 |
|
|
3.80 |
|
|
3,916,061 |
|
|
108,344 |
|
|
3.70 |
|
Non-interest-earning
assets |
296,043 |
|
|
|
|
|
|
|
241,828 |
|
|
|
|
|
|
Total assets |
$ |
4,608,071 |
|
|
|
|
|
|
|
$ |
4,157,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, and money market accounts |
$ |
1,906,047 |
|
|
$ |
15,452 |
|
|
1.08 |
% |
|
$ |
1,652,683 |
|
|
$ |
7,146 |
|
|
0.58 |
% |
Certificates of deposit |
1,039,344 |
|
|
15,860 |
|
|
2.04 |
|
|
929,654 |
|
|
11,708 |
|
|
1.68 |
|
Total interest-bearing deposits |
2,945,391 |
|
|
31,312 |
|
|
1.42 |
|
|
2,582,337 |
|
|
18,854 |
|
|
0.98 |
|
Borrowed funds |
508,176 |
|
|
7,885 |
|
|
2.07 |
|
|
471,567 |
|
|
6,252 |
|
|
1.77 |
|
Total interest-bearing liabilities |
3,453,567 |
|
|
39,197 |
|
|
1.52 |
|
|
3,053,904 |
|
|
25,106 |
|
|
1.10 |
|
Non-interest bearing
deposits |
382,686 |
|
|
|
|
|
|
|
408,116 |
|
|
|
|
|
|
Accrued expenses and other
liabilities |
92,122 |
|
|
|
|
|
|
|
48,596 |
|
|
|
|
|
|
Total liabilities |
3,928,375 |
|
|
|
|
|
|
|
3,510,616 |
|
|
|
|
|
|
Stockholders' equity |
679,696 |
|
|
|
|
|
|
|
647,273 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
4,608,071 |
|
|
|
|
|
|
|
$ |
4,157,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
83,309 |
|
|
|
|
|
|
|
$ |
83,238 |
|
|
|
|
Net interest rate spread
(4) |
|
|
|
|
2.28 |
% |
|
|
|
|
|
2.60 |
% |
Net interest-earning assets
(5) |
$ |
858,461 |
|
|
|
|
|
|
|
$ |
862,157 |
|
|
|
|
|
|
Net interest margin (6) |
|
|
|
|
2.58 |
% |
|
|
|
|
|
2.84 |
% |
Average interest-earning
assets to interest-bearing liabilities |
|
|
|
|
124.86 |
% |
|
|
|
|
|
128.23 |
% |
(1) Average yields and rates are annualized.(2)
Includes non-accruing loans.(3) Securities
available-for-sale and other securities are reported at amortized
cost.(4) 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.(5)
Net interest-earning assets represent total interest-earning
assets less total interest-bearing liabilities.(6) Net
interest margin represents net interest income divided by average
total interest-earning assets.
Company Contact:William R. JacobsChief Financial OfficerTel:
(732) 499-7200 ext. 2519
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