Executive Summary

Northfield Bancorp reported diluted EPS of $0.27 for Q3 2025, a modest beat versus S&P Global consensus of $0.26; revenue of $38.2M mildly missed a $39.1M consensus. EPS benefited from stronger net interest income and lower provision versus prior year; revenue softness reflects reduced prepayment/one-time items QoQ *.
Net interest margin improved 46 bps YoY to 2.54% (from 2.08%) on higher asset yields and lower funding costs; sequentially NIM dipped 3 bps (2.57%→2.54%) due to lower prepayment/non-accrual interest recovery in Q3 .
Asset quality mixed: non‑performing loans rose to 0.49% of loans (0.36% in Q2), with 90+ day accruing loans at $3.8M; net charge‑offs fell to $0.3M in Q3 from $0.9M in Q2 and $2.1M in Q3’24, largely within small‑business unsecured C&I .
Deposits excluding brokered grew $32.6M QoQ and $68.7M YTD; deposit costs (ex‑brokered) declined to 1.85% from 1.88% QoQ; the Board declared a $0.13 dividend payable Nov 19, 2025, record Nov 5, 2025 .
Strategic mix shift continues: multifamily loans declined; securities up; CRE concentration remains elevated but trending lower vs earlier 2025; management emphasizes disciplined pricing, expense control, and capital returns .

What Went Well and What Went Wrong

What Went Well

EPS beat and margin expansion: Diluted EPS $0.27 vs $0.26 consensus; NIM 2.54% (+46 bps YoY), driven by higher yields on MBS/loans and lower funding costs * .
Deposit mix and cost improvement: Deposits ex‑brokered +$32.6M QoQ; cost of deposits ex‑brokered down to 1.85% from 1.88% QoQ, supporting net interest income resilience .
Lower credit losses QoQ: Provision fell to $1.1M (from $2.1M in Q2); net charge‑offs dropped to $0.3M vs $0.9M in Q2, reflecting improved trends in unsecured small‑business C&I .
Management tone: “Our team continues to build upon our financial performance…expansion of both net interest income and non‑interest income while prudently managing expenses” — Steven M. Klein, Chairman & CEO .

What Went Wrong

Revenue miss: Revenue $38.2M vs $39.1M consensus; sequential NIM down 3 bps as Q2 benefited from higher loan prepayment and non‑accrual interest recovery * .
Asset quality uptick: NPLs/loans rose to 0.49% (from 0.36% in Q2); 90+ day accruing loans increased to $3.8M, including a $2.9M C&I relationship past maturity (renewed post‑quarter) .
Loan balances contracted: Loans declined $20.3M QoQ (annualized −2.1%), driven by multifamily reductions; NIM benefit increasingly reliant on securities mix rather than loan growth .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Diluted EPS ($)	$0.16	$0.24	$0.27
Revenue ($USD Millions)	$29.27*	$36.84*	$38.17*
Net Interest Income ($USD Millions)	$28.23	$34.40	$34.51
Non‑Interest Income ($USD Millions)	$3.58	$4.53	$4.73
Net Interest Margin (%)	2.08%	2.57%	2.54%
Efficiency Ratio (%)	64.07	59.02	59.59
ROA (%)	0.46	0.68	0.75

Revenue and EPS values marked with an asterisk are from S&P Global; Values retrieved from S&P Global.

Segment/KPI highlights:

Loan growth: Loans held‑for‑investment ($B) | $4.02 → $3.92 → $3.90 .
Deposits ($B) | $4.14 → $3.99 → $3.97 .
Deposits ex‑brokered: +$32.6M QoQ; +$68.7M YTD .
Cost of deposits (ex‑brokered): 1.85% at 9/30/25 vs 1.88% at 6/30/25 .
NPLs/Total Loans: 0.51% (12/31/24) → 0.36% (6/30/25) → 0.49% (9/30/25) .
Net charge‑offs ($USD, quarter): $2.10M (Q3’24) → $0.89M (Q2’25) → $0.30M (Q3’25) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q4 2025 (payment Nov 19)	N/A	$0.13 declared; record Nov 5, 2025	Initiated/maintained regular payout
Formal financial guidance (revenue, margins, opex)	FY/Q4 2025	None provided	None provided	N/A

Note: The company did not issue formal quantitative guidance ranges in the press release/10‑Q; management highlighted continued focus on NII/NIM expansion, expense discipline, and capital returns .

Earnings Call Themes & Trends

(Transcript not available; themes synthesized from 8‑K/10‑Qs)

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin	2.38%; improved on lower funding cost, higher MBS yield	2.57%; strong YoY expansion incl. non‑accrual recovery, prepayments	2.54%; +46 bps YoY, −3 bps QoQ as prepayments/recoveries normalized	Improving YoY; slight QoQ dip
Deposit mix/cost	Deposits ex‑brokered +$133.6M; cost 1.94% at 3/31	Deposits ex‑brokered +$36.0M; seasonality in savings/MM; cost down	Deposits ex‑brokered +$32.6M QoQ; cost ex‑brokered 1.85%	Favorable mix and cost
Credit—unsecured small‑business C&I	NCOs $2.8M; portfolio $25.5M; close monitoring	YTD NCOs $3.7M; provisioning up on CECL forecast	YTD NCOs $4.0M; portfolio $22.4M; lower quarterly NCOs	Improving quarterly losses; smaller portfolio
CRE concentration	Non‑owner‑occupied CRE ~424% RBC	~416% at Q2	~406% at Q3	Gradual improvement
Rent‑regulated multifamily exposure	$435.8M; detailed county/LTV/DSCR	$434.1M with portfolio metrics	$423.7M with portfolio metrics	Slightly down
Liquidity ratio	On‑hand liquidity 24.3%	Noted stable borrowing access	On‑hand liquidity 17.1%; significant borrowing capacity	Lower, still adequate
Capital/returns	CBLR 12.08% (Company) ; $5M buyback	$10M buyback authorized; $10M repurchased	CBLR 12.15% (Company); $15M repurchased YTD; $0.13 dividend	Ongoing returns

Management Commentary

“Our team continues to build upon our financial performance, focusing on the expansion of both net interest income and non‑interest income while prudently managing our non‑interest expenses to generate higher levels of operating income and capital…” — Steven M. Klein, Chairman & CEO .
“I’m pleased to report the declaration of a quarterly cash dividend of $0.13 per common share, payable November 19, 2025…” — Steven M. Klein .

Q&A Highlights

The Q3 2025 earnings call transcript was not available in our document set; no direct Q&A content could be analyzed. We cross‑referenced narrative from the 8‑K and Q3 10‑Q for strategic context .

Estimates Context

Metric	Q3 2024	Q2 2025	Q3 2025
Primary EPS Consensus Mean ($)	0.1567* (actual 0.16 )	0.2250* (actual 0.24 )	0.26* (actual 0.27 )
Revenue Consensus Mean ($USD Millions)	30.00* (actual 29.27*)	36.53* (actual 36.84*)	39.14* (actual 38.17*)
Target Price Consensus Mean ($)	12.0*	12.0*	12.0*

Q3 2025: EPS beat by $0.01; revenue missed by ~$1.0M.
Q2 2025: EPS beat ($0.015); revenue beat (~$0.31M).
Q3 2024: EPS roughly in line; revenue modest miss.
Values retrieved from S&P Global.

Key Takeaways for Investors

EPS resilience with lower sequential prepayment/non‑accrual tailwinds suggests core margin improvement is durable; modest revenue miss reflects normalizing one‑offs — bias EPS revisions slightly up, revenue slightly down near‑term *.
Deposit cost control and mix (municipal/commercial transaction accounts) continues; watch whether cost ex‑brokered stays ≤1.85% amid rate dynamics — positive for NIM if sustained .
Credit quality inflection emerging: NCOs fell materially QoQ, but NPLs/loans rose and 90+ day accruing increased; closely monitor unsecured small‑business C&I and any spillover to CRE/rent‑regulated multifamily .
Balance sheet mix shift (multifamily down, securities up) supports yield/NIM but caps loan‑driven revenue growth; expect continued securities‑led NII with disciplined loan pricing .
Elevated CRE concentration easing (406% vs 424% in Q1); regulators may still pressure capital/underwriting — risk manageable given strong CBLR (Company 12.15%, Bank 12.64%) and liquidity .
Capital returns intact (YTD $15M buybacks; $0.13 dividend); supports total shareholder yield; sensitivity to credit/macro should be monitored for payout sustainability .
Trading: Near‑term catalyst limited; stock reaction likely keyed to credit trajectory and NIM sustainability. Medium‑term thesis hinges on steady NII, benign credit in small‑business C&I, and deposit cost/mix advantages.

Sources

Q3 2025 8‑K 2.02 and Exhibit 99.1 press release (results, dividend, KPIs): .
Q3 2025 10‑Q (financial statements & MD&A): .
Q2 2025 10‑Q and Q1 2025 press release (trend context): .
S&P Global consensus estimates: EPS and revenue (Q3’25, Q2’25, Q3’24) and target price (see tables; Values retrieved from S&P Global).*

Northfield Bancorp, Inc. (NFBK)·Q3 2025 Earnings Summary