Executive Summary

Q2 2025 EPS of $0.24 beat Wall Street consensus $0.225 by ~6.7%; “GAAP revenue” (net interest income + non‑interest income) of $38.9m beat consensus $36.5m by ~6.6%. Drivers were NIM expansion and stronger non‑interest income, including trading gains and higher BOLI income . Values retrieved from S&P Global.*
Net interest margin expanded to 2.57% from 2.38% in Q1 and 2.09% in Q2 2024, reflecting lower funding costs and higher asset yields; efficiency ratio improved to 59.02% vs 61.57% in Q1 and 72.89% YoY .
Asset quality strengthened: NPLs/total loans fell to 0.36% vs 0.48% in Q1 2025 and 0.42% in Q2 2024; accruing 30–89 day delinquencies dropped to $4.1m from $6.8m in Q1 and $9.3m at YE 2024 .
Capital returns: completed $10.0m buyback (862,469 shares) and declared $0.13 dividend payable Aug 20, 2025; CBLR ratios of 12.09% (Company) and 12.56% (Bank) remain well-capitalized .
Watch liquidity mix: deposits fell $152m QoQ while borrowings rose $166m; uninsured deposits (ex fully collateralized/governmental) rose to ~23.1% of total .

What Went Well and What Went Wrong

What Went Well

Net interest income up 8.2% QoQ and 19.9% YoY (to $34.4m) on lower cost of liabilities and higher yields on loans/MBS; NIM +19 bps QoQ .
Non‑interest income rose 49.8% QoQ to $4.5m on $1.0m trading gains (vs $0.3m loss prior quarter) and higher BOLI income tied to late‑2024 policy exchanges .
Management tone confident: “continued execution of strategic initiatives... margin expansion, and expense discipline,” coupled with ongoing capital deployment via repurchases and dividend .

What Went Wrong

Provision for credit losses of $2.1m vs a $0.6m benefit YoY, reflecting worsening macro inputs in CECL, increased specific reserves, and lower prepayment speeds; small business unsecured C&I remains the stress point .
Deposits declined 3.7% QoQ (to $3.99B) with heavy reduction in brokered deposits; borrowings increased to $893.5m; raises funding mix and sensitivity considerations .
Uninsured deposits share edged up (ex fully collateralized/governmental) to ~23.1% vs 21.7% at YE 2024, modestly increasing risk under stressed scenarios .

Financial Results

Core P&L vs prior periods and estimates

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$31.546	$34.813	$38.922
Diluted EPS ($USD)	$0.14	$0.19	$0.24
Net Income ($USD Millions)	$5.957	$7.876	$9.571
Net Interest Margin (%)	2.09%	2.38%	2.57%
Efficiency Ratio (%)	72.89%	61.57%	59.02%

Notes: Revenue calculated as Net Interest Income + Non‑Interest Income from the company’s income statement .

Actual vs Wall Street Consensus (Q2 2025)

Metric	Consensus	Actual	Surprise
Primary EPS ($)	0.225*	0.24	+6.7% (beat)
Revenue ($USD)	36.5285m*	38.922m	+6.6% (beat)
# EPS Estimates	2*	—	—
# Revenue Estimates	2*	—	—

Values retrieved from S&P Global.*

Balance sheet mix and KPIs

Metric	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Total Deposits ($USD Thousands)	$4,138,477	$4,131,956	$3,986,187
Borrowings ($USD Thousands)	$666,402	$709,159	$831,920
Loans HFI, net ($USD Thousands)	$4,022,224	$3,991,529	$3,920,613
Debt Securities AFS ($USD Thousands)	$1,100,817	$1,246,473	$1,300,975
NPLs / Total Loans (%)	0.51%	0.48%	0.36%
Allowance / NPLs (%)	227.72%	242.73%	256.15%
Cost of Deposits (ex‑brokered)	1.95%	1.94%	1.88%
CBLR (Company / Bank)	12.11% / 12.46%	12.08% / 12.62%	12.09% / 12.56%

Deposit mix (detail)

Category ($USD Thousands)	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Non‑interest checking	$706,976	$722,994	$735,811
NOW & interest checking	$1,286,154	$1,367,219	$1,331,060
Savings	$904,163	$899,674	$874,927
Money market	$272,145	$271,566	$254,154
CDs ≤ $250k	$580,940	$602,959	$573,612
CDs > $250k	$124,681	$144,255	$141,623
Brokered deposits	$263,418	$123,289	$75,000
Total Deposits	$4,138,477	$4,131,956	$3,986,187

Loans by type (held‑for‑investment)

Category ($USD Thousands)	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Multifamily	$2,597,484	$2,567,913	$2,483,078
Commercial mortgage	$889,801	$882,600	$886,135
1–4 family residential	$150,217	$146,791	$162,750
Home equity & LOC	$174,062	$181,354	$186,848
Construction & land	$35,897	$40,284	$32,300
C&I	$163,425	$162,133	$158,539
Other loans	$2,165	$1,411	$2,008
Total Loans HFI (ex‑PCD)	$4,013,051	$3,982,486	$3,911,658
PCD loans	$9,173	$9,043	$8,955
Total Loans HFI, net	$4,022,224	$3,991,529	$3,920,613

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash dividend per share	Q3 2025 (payable Aug 20)	$0.13 (ongoing run‑rate)	$0.13 declared	Maintained
Share repurchases	2025 YTD	$5m plan (Feb 26) completed; new $10m (Apr 23) approved	$10m plan completed in Q2; $15m YTD repurchased	Completed/Executed
Financial guidance (revenue, margins, OpEx, tax)	2025	Not provided	Not provided	—

No formal quantitative financial guidance was issued in the earnings materials .

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available despite targeted searches; themes reflect management’s press release commentary and prior quarter releases .

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Net interest margin and funding costs	NIM improved to 2.18% in Q4 on lower cost of liabilities; Q1 NIM up to 2.38% as deposits mix improved	NIM 2.57%; cost of deposits ex‑brokered down to 1.88%	Improving
Non‑interest income drivers (BOLI, trading)	Q4 had $3.4m property gain; Q1 saw BOLI income up, trading losses	Trading gains $1.0m; BOLI +$0.76m YoY; no property gains	Normalized, positive
Credit provisioning and CECL inputs	Q4 and Q1 increased reserves for C&I risk and model changes; small business unsecured C&I a focus	Provision $2.1m on worsening macro forecast, specific reserves; C&I charge‑offs $0.88m	Elevated but managed
CRE concentration and rent‑regulated multifamily	Regulators may require higher capital; detailed rent‑regulated exposure disclosed	Continued concentration monitoring; rent‑regulated MF $434.1m; office loans $178.8m	Stable oversight
Liquidity and capital actions	Q4–Q1: deposit growth ex brokered; buybacks and dividends; strong CBLR	Deposits down; borrowings up; repurchases completed; CBLR >12%	Mixed (mix shift)

Management Commentary

“Our strong financial results reflect the continued execution of our strategic initiatives, focused on prudent and disciplined lending and deposit gathering, net interest margin expansion, and expense discipline.” — Steven M. Klein, Chairman & CEO .
“We continue to deploy our substantial capital base, including through stock repurchases of $15.0 million for the year and the declaration of a quarterly cash dividend of $0.13 per common share.” — Steven M. Klein .
Prior quarter tone: “focus on growing our franchise, deploying our strong capital base, and delivering solid financial performance… reducing funding costs and increasing the yield on our interest‑earning assets.” — Steven M. Klein .

Q&A Highlights

A full Q2 2025 earnings call transcript was not available; no Q&A themes or additional guidance clarifications could be verified. Management’s written materials did not provide formal financial guidance ranges beyond capital return actions .

Estimates Context

EPS and revenue both beat consensus (EPS +6.7%; revenue +6.6%), with only two covering estimates; upside was driven by NIM expansion (higher asset yields, lower deposit costs), stronger trading/BOLI income, and lower net charge‑offs QoQ . Values retrieved from S&P Global.*
Given sustained NIM momentum and cost of deposits trending lower, Street EPS estimates may need modest upward revision if asset quality trends hold and funding mix does not pressure margins; watch provisioning cadence tied to macro CECL inputs and unsecured C&I behavior .

Key Takeaways for Investors

The beat was quality: NIM expansion and non‑interest income normalization drove EPS strength; efficiency improved to 59% and ROA rose to 0.68% .
Credit remains the swing factor: provision elevated on CECL macro and specific reserves; small business unsecured C&I charge‑offs continue but trended lower QoQ .
Funding mix shifted: deposits down, borrowings up; monitor uninsured deposit share (~23%) and reliance on borrowings as rate paths evolve .
Capital return persists: completed $10m buyback in Q2, $15m YTD, and maintained $0.13 dividend; CBLR >12% supports continued distributions .
Near‑term trading: Positive setup on NIM/efficiency if deposit costs keep falling; watch for any negative surprises in provisioning or CRE concentration capital requirements .
Medium‑term thesis: Margin tailwinds from asset mix (MBS purchases) and disciplined pricing, balanced against credit normalization and regulatory capital sensitivity given CRE concentrations .
Data points to track next quarter: deposit mix shifts, brokered usage, unsecured C&I performance, rent‑regulated MF metrics, cost of funds trajectory, and trading/BOLI volatility .

S&P Global disclaimer: Values retrieved from S&P Global.*

Northfield Bancorp, Inc. (NFBK)·Q2 2025 Earnings Summary