Northfield Bancorp Reports $7.9 Million Net Income for Q1 2025, Driven by Increased Net Interest Income

Northfield Bancorp, Inc. reported a net income of $7.9 million for the three months ended March 31, 2025, an increase from $6.2 million in the same period last year. This growth in profitability was primarily driven by a $3.9 million rise in net interest income, attributed to lower funding costs and higher yields on interest-earning assets. Basic and diluted earnings per share improved to $0.19, compared to $0.15 in the prior year. The company's return on average assets and return on average stockholders' equity also increased, reaching 0.56% and 4.52%, respectively.

Total assets rose by $43.6 million, or 0.8%, to $5.71 billion as of March 31, 2025, compared to $5.67 billion at the end of 2024. This increase was mainly due to a $145.7 million, or 13.2%, growth in available-for-sale debt securities, which reached $1.25 billion. However, cash and cash equivalents decreased significantly by $66.1 million, or 39.4%, to $101.7 million, as excess liquidity was redirected into higher-yielding mortgage-backed securities. Loans held-for-investment also saw a slight decline of $30.7 million, or 0.8%, primarily due to a decrease in multifamily real estate loans.

In terms of operational developments, Northfield Bancorp's total liabilities increased by $37.2 million, or 0.7%, to $5.00 billion, driven by a $42.8 million rise in borrowings. Total deposits, excluding brokered deposits, increased by $133.6 million, or 3.4%, reflecting growth in transaction accounts and time deposits. The company has also initiated a stock repurchase program, repurchasing 440,150 shares at an average price of $11.36, totaling $5.0 million.

Looking ahead, Northfield Bancorp remains focused on managing its loan portfolio and maintaining a strong capital position. The company has a robust liquidity framework, with access to additional funding from the Federal Home Loan Bank of New York. As of March 31, 2025, the company reported a Community Bank Leverage Ratio of 12.62%, well above the regulatory minimum of 9%. The management continues to monitor economic conditions and market trends to navigate potential risks and capitalize on growth opportunities.