Northfield Bancorp, Inc. (NFBK)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 GAAP diluted EPS was $0.27, up from $0.16 in Q3 and $0.19 in Q4 2023; results included a $0.06/share gain from a Staten Island branch sale and consolidation .
• Total revenue (net interest income + non-interest income) was ~$36.69M, up sequentially and year over year; net interest margin expanded 10 bps to 2.18%, and average cost of interest-bearing liabilities fell 10 bps to 2.85% .
• Versus estimates: S&P Global consensus was unavailable at retrieval; third-party data show EPS beat ($0.27 GAAP vs ~$0.18 consensus) and revenue beat ($36.69M vs ~$32.51M) — adjusted EPS reported by Zacks at $0.21 likely excludes non-recurring items .
• Asset quality improved: non-performing loans to total loans fell to 0.51% from 0.75% in Q3; provision was $1.9M and net charge-offs were $2.0M, still elevated due to small business unsecured C&I loans .

What Went Well and What Went Wrong

What Went Well

• Net interest margin expanded 10 bps QoQ to 2.18% as funding costs fell; cost of interest-bearing liabilities declined 10 bps to 2.85%, driven by lower borrowed funds costs .
• Strong deposit growth and mix improvement: total deposits rose to $4.14B; non-brokered deposits increased $96.6M YoY, with cost of deposits (ex-brokered) down to 1.95% from 2.07% at Q3 .
• CEO tone constructive on growth opportunities as rates fell: “We delivered solid financial performance…maintaining strong asset quality…recent decreases in short-term market interest rates…should provide…growth opportunities in the new year.” — Steven M. Klein, Chairman, President & CEO .

What Went Wrong

• Credit costs remained a headwind: provision increased to $1.9M; net charge-offs were $2.0M, including $1.6M from unsecured small business C&I loans .
• Continued credit watch in office CRE and rent-regulated multifamily; office-related loans were $184.0M (~5% of loans); rent-regulated multifamily totals ~$437.7M (~11% of loans) .
• Efficiency ratio elevated historically despite improvement QoQ (56.75% vs 64.07% in Q3), reflecting still-high operating costs and funding pressures through 2024 .

Financial Results

Estimates comparison (reference):

• Third-party consensus EPS: ~$0.18 vs GAAP EPS $0.27 (Zacks also reports adjusted EPS $0.21) .
• Third-party consensus revenue: ~$32.51M vs actual ~$36.69M .

KPIs and Balance Sheet

Loan Balances (Selected)

Guidance Changes

No formal quantitative guidance ranges were issued. Dividend policy remains consistent at $0.13 per share .

Earnings Call Themes & Trends

Note: No earnings call transcript was available; themes are derived from Q2/Q3/Q4 press materials .

Management Commentary

• “We delivered solid financial performance for the quarter, increasing our net interest income and net interest margin, prudently managing our operating expenses, maintaining strong asset quality, and managing our strong capital levels.” — Steven M. Klein, Chairman, President & CEO (Q4 PR) .
• “In the third quarter…we delivered solid financial performance…increasing our net income, and earnings per share…While significant risks remain, the decrease in short-term market interest rates late in the third quarter should provide increased economic activity….” (Q3 PR) .
• “We delivered solid financial performance for the quarter prudently managing loan and deposit balances, maintaining strong asset quality, and managing our expenses…we have effectively managed our cost of funds, and with assets repricing higher, net interest income increased….” (Q2 PR) .

Q&A Highlights

No Q4 2024 earnings call transcript was available through the document portal; no Q&A themes can be cited. Press materials include commentary on funding costs, deposit trends, and credit quality but lack the interactive analyst Q&A detail .

Estimates Context

• S&P Global consensus data was unavailable during retrieval (tool request limit).
• Third-party reference points indicate a beat: EPS $0.27 GAAP vs ~$0.18 consensus; revenue ~$36.69M vs ~$32.51M. Zacks also reports adjusted EPS of $0.21 (ex/non-recurring) which likely excludes the $0.06/share branch-sale gain .

Note: Adjusted EPS reported by Zacks at $0.21 reflects adjustments for non-recurring items; company-disclosed gain was $0.06/share from branch sale .

Key Takeaways for Investors

• Earnings quality: Underlying earnings benefited from lower funding costs and NIM expansion; GAAP EPS also included a discrete $0.06/share branch-sale gain. Expect normalization without that non-recurring boost .
• Funding trajectory: Falling cost of borrowed funds and improved deposit mix point to continued NIM recovery into 2025 if rate tailwinds persist; monitor COF discipline and brokered vs borrowings .
• Credit vigilance: Small business unsecured C&I losses remain elevated; watch provisioning trends and charge-offs as management works down exposures; asset quality metrics improved QoQ (NPL ratio down to 0.51%) .
• CRE exposure manageable but meaningful: Office and rent-regulated multifamily concentrations warrant continued caution; collateral coverage and DSCR metrics appear adequate today .
• Capital and liquidity buffers: CBLR >12% and on-hand liquidity 17.3% provide flexibility; dividend maintained at $0.13/share supports shareholder return while preserving balance sheet strength .
• Estimate resets likely modestly positive: With beats on EPS and revenue versus third-party consensus (S&P Global unavailable), sell-side models may adjust NIM/funding cost assumptions upward; watch near-term revisions .
• Trading lens: Near-term catalysts include continued COF declines and NIM expansion; risks center on credit costs from unsecured small business C&I and CRE cyclicality. Consider positioning for improving spread income with vigilant credit monitoring .