Northfield Bancorp Reports $29.9 Million Net Income for 2024, Decrease from Prior Year

Northfield Bancorp, Inc. reported net income of $29.9 million, or $0.72 per diluted common share, for the year ended December 31, 2024, compared to $37.7 million, or $0.86 per diluted common share, in the prior year. The decrease in net income resulted from a $10.2 million decrease in net interest income, a $2.9 million increase in the provision for credit losses, a $3.1 million increase in non-interest expense, and a $3.5 million decrease in income tax expense, partially offset by a $4.9 million increase in non-interest income. The company's total assets increased by $68 million (1.2%) to $5.67 billion, primarily due to an increase in available-for-sale debt securities, while liabilities increased by $62.7 million (1.3%) to $4.96 billion. Stockholders' equity increased by $5.3 million to $704.7 million.

The company's loan portfolio held for investment, net, decreased by $181.4 million (4.3%) to $4.02 billion, primarily due to decreases in multifamily and commercial real estate loans, partially offset by increases in home equity loans, commercial and industrial loans, and construction and land loans. Non-performing loans increased to $20.3 million (0.51% of total loans) from $11.4 million (0.27%) in the prior year, primarily due to increases in non-performing commercial and industrial and commercial real estate loans. The allowance for credit losses decreased to $35.2 million from $37.5 million, primarily due to a decrease in loan balances and an improvement in the macroeconomic forecast, partially offset by increases in reserves for commercial and industrial and home equity loan portfolios.

During 2024, Northfield Bancorp completed several stock repurchase programs totaling $30 million, repurchasing 1.8 million shares at an average price of $10.24 per share. A new $5 million stock repurchase program was approved on February 26, 2025. The company's deposit base increased by $260 million (6.7%) to $4.14 billion, with a significant increase in brokered deposits. Borrowed funds decreased by $167.9 million due to the repayment of borrowings under the BTFP and a shift towards lower-cost brokered deposits. The company employed 357 full-time employees at year-end.

Northfield Bancorp identified several key risk factors, including concentration in multifamily and commercial real estate lending, potential impacts from changes in New York State legislation, insufficient allowance for credit losses, the protracted foreclosure process, and competition in the market area. The company also highlighted risks related to interest rate changes, economic downturns, regulatory matters, cybersecurity threats, and operational issues. The company's outlook is contingent upon various factors, including general economic conditions, competition, and interest rate fluctuations. The company's financial statements were audited by Crowe LLP, with the allowance for credit losses identified as a critical audit matter.