Northfield Bancorp (NFBK) Q3 2024 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2024 was $18.7 million, down from $29.4 million year-over-year, mainly due to lower net interest income and higher funding costs, partially offset by improved non-interest income.

• Q3 2024 net income was $6.5 million ($0.16 per diluted share), up from $6.0 million ($0.14) in Q2 2024, but down from $8.2 million ($0.19) in Q3 2023.

• Basic and diluted EPS were $0.45 for the nine months ended September 30, 2024, compared to $0.67 for the same period in 2023.

• Total assets increased 2.4% to $5.73 billion at September 30, 2024.

• Board declared a $0.13 per share cash dividend, payable November 20, 2024.

Financial highlights

• Net interest income for the nine months ended September 30, 2024 decreased 11.4% to $84.8 million, with net interest margin dropping to 2.07% from 2.41% year-over-year.

• Net interest income for Q3 2024 was $28.2 million, down 4.9% year-over-year; net interest margin was 2.08%, down from 2.25% in Q3 2023.

• Provision for credit losses increased to $2.5 million in Q3 2024 from $188,000 in Q3 2023, mainly due to a single commercial and industrial relationship.

• Non-interest income grew 18.7% to $9.8 million for the nine months, and 68.7% year-over-year to $3.6 million in Q3 2024.

• Non-interest expense rose 5.2% to $65.7 million for the nine months, but decreased 0.9% year-over-year to $20.4 million in Q3 2024.

Outlook and guidance

• Management expects to record a $3.6 million gain on the sale of a New York branch in Q4 2024.

• Management anticipates lower short-term rates to support economic activity and provide new opportunities.

• No material changes to risk factors were reported for the quarter.