Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors

You're looking at Northfield Bancorp, Inc. (NFBK) and trying to figure out if their recent earnings strength is a sustainable trend or just a blip in a tough rate environment, and honestly, the numbers paint a compelling picture of a bank managing its balance sheet well. For the first nine months of 2025, the company delivered a net income of $28.2 million, a significant 51% jump from the prior year, mostly by expanding its Net Interest Margin (NIM) to 2.54% in Q3 2025. That's a solid performance. Still, as a seasoned analyst, I note the near-term risk: while asset quality remains strong, non-performing loans did tick up to 0.49% of total loans by September 30, 2025, up from 0.36% in the prior quarter. With total assets sitting at $5.73 billion, their Return on Assets (ROA) hit 0.75% in the third quarter. The market has a consensus Hold rating but a median price target of $12.04, which suggests a defintely material upside from the current trading range. We need to dig into what's driving that NIM expansion and whether that non-performing loan increase is just noise or the start of a trend.

Revenue Analysis

If you're looking at Northfield Bancorp, Inc. (Staten Island, NY) (NFBK), the direct takeaway is this: the bank's revenue engine is running hotter in 2025, driven almost entirely by a significant expansion in its core lending business. The nine-month net interest income is up nearly a fifth year-over-year, which is a strong signal of effective balance sheet management in a challenging rate environment.

For a bank like Northfield Bancorp, Inc., revenue is a two-part story: Net Interest Income (NII) and Non-Interest Income. NII is the money made from lending-the difference between the interest earned on loans and securities and the interest paid on deposits and borrowings. This is the primary revenue source, representing the core banking segment's performance. The other part, Non-Interest Income, comes from fees, service charges, and other non-lending activities.

Core Revenue Streams and 2025 Performance

The company's revenue streams are overwhelmingly dominated by its banking segment, specifically the Net Interest Income. For the nine months ended September 30, 2025, Net Interest Income was a powerful $100.7 million, marking an increase of $15.9 million or 18.7% compared to the same period in 2024. This is a defintely a high-growth trajectory after a few years of pressure.

The primary revenue sources break down like this, using the latest Q3 2025 data:

• Net Interest Income: Generated $34.51 million in Q3 2025. This is the profit engine, fueled by higher yields on interest-earning assets and lower funding costs.
• Non-Interest Income: Contributed an estimated $4.72 million to the Q3 2025 total revenue of $39.23 million.

Here's the quick math on segment contribution for Q3 2025, which shows just how reliant the bank is on its core lending function. It's a community bank model, so this concentration is expected, but still worth noting.

Year-over-Year Growth and Key Shifts

The year-over-year revenue growth is strong, but the drivers have changed slightly. The Q3 2025 total revenue of $39.23 million represented a year-over-year increase of approximately 22.3% compared to Q3 2024, showing significant acceleration. This surge is mainly due to the bank's success in managing its cost of funds and increasing asset yields, which boosted the Net Interest Margin (NIM) to 2.54% in Q3 2025.

However, you need to be realistic about non-interest revenue. In Q1 2025, Non-Interest Income dropped sharply to $3.0 million from the prior quarter. What this estimate hides is that the prior quarter (Q4 2024) included a significant, one-time $3.4 million gain from a property sale. Non-Interest Income has since recovered to an estimated $4.72 million in Q3 2025, but the Q1 dip shows the segment's volatility when non-recurring items hit the books.

Northfield Bancorp, Inc. is leveraging the current rate environment to expand its margin, and that's the clear opportunity here. The 18.7% increase in nine-month Net Interest Income is a powerful trend. For a deeper dive, read Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors.

Next step: Check the Q4 2025 earnings guidance for any shifts in their NIM forecast.

Profitability Metrics

You want to know if Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) is making money efficiently, and the short answer is yes, their profitability has seen a sharp, recent upturn, but it still lags some key industry benchmarks. The core of their business-lending-is performing much better, which is the main driver of their 51% year-to-year net income growth for the first nine months of 2025.

For a bank, the most important profitability measure isn't traditional gross profit; it's the Net Interest Margin (NIM). This is the spread between what they earn on loans and investments and what they pay for deposits. In the third quarter of 2025, NFBK's NIM was 2.54%, a significant jump from 2.08% a year earlier. That's a clear sign their asset-liability management is working, driven by both higher yields on interest-earning assets and lower funding costs.

Here's the quick math on their latest performance, based on the nine months ended September 30, 2025:

• Net Income: $28.2 million (up from $18.7 million in the same period 2024).
• Total Revenue (Net Interest Income + Non-interest Income): Approximately $119.97 million.
• Net Profit Margin: The latest reported net profit margin surged to 27.8%, up from 21.6% a year ago. That's a major turnaround.

What this estimate hides is that while the recent trend is strong, the longer-term picture has been mixed. The company's earnings have declined by an average of 11.5% per year over the past five years, so sustaining this recent margin improvement is the critical next step.

Comparing NFBK's Ratios to the Industry

When you stack NFBK up against other US banks, you see where they are strong and where there's still room to grow. I look at three main ratios: NIM, Return on Assets (ROA), and the Efficiency Ratio (a measure of operational efficiency, or cost management).

The NIM comparison is the most telling. NFBK's Q3 2025 NIM of 2.54% is below the average for a typical US Community Bank, which was 3.62% in the second quarter of 2025. This means NFBK is earning less on the spread for every dollar of assets than its peers. Similarly, their approximate annualized Return on Assets (ROA) of 0.75% (calculated from Q3 net income and total assets of $5.73 billion) is below the overall US banking industry average of 1.13% for Q2 2025.

The good news is on the cost side, which speaks to operational efficiency (the cost management piece). The efficiency ratio (non-interest expense as a percentage of total revenue) for NFBK over the first nine months of 2025 is approximately 56.5%. This is better than the projected industry average of around 60% for 2025. A lower ratio is better, so NFBK is managing its operating expenses more effectively than the average bank right now. They're defintely keeping a tight lid on costs.

Operational Efficiency and Margin Trends

The trend in operational efficiency is positive. Beyond the low efficiency ratio, Northfield Bancorp, Inc. has been actively managing its cost of funds (what they pay on deposits). The cost of deposits, excluding brokered deposits, dropped to 1.85% as of September 30, 2025, down from 1.88% in the prior quarter. This small decrease is a big deal because it directly supports NIM expansion. The company's management has explicitly focused on prudently managing non-interest expenses to generate higher operating income.

The biggest risk here is that the NIM improvement-which drove the net income surge-could stall if interest rates stabilize or if deposit competition heats up again. For now, the operational discipline is a clear strength. If you want a full view of the risks and opportunities, you should read the full post: Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors.

Next Step: Portfolio Manager: Model a scenario where NFBK's NIM compresses by 20 basis points (0.20%) in Q4 2025 to gauge the impact on net income.

Debt vs. Equity Structure

You're looking at Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) and trying to figure out if their growth is built on a solid foundation or too much borrowed money. The quick takeaway is that the bank is more leveraged than its regional peers, but that's not defintely a red flag for a financial institution, as long as they manage the debt well.

As of late 2025, Northfield Bancorp, Inc. is running a Debt-to-Equity (D/E) ratio of about 1.31. This ratio tells you how much debt the company is using to finance its assets relative to the value of shareholders' equity (the book value of the company). For a regional bank, a higher D/E is common because borrowing and lending is their business model-it's how they generate profit. Still, you need a benchmark.

Here's the quick math on how Northfield Bancorp, Inc. stacks up against the industry:

Northfield Bancorp, Inc.'s ratio of 1.31 is significantly higher than the regional banks' average of around 0.50. This means the bank uses more debt (liabilities) relative to its equity base than the typical regional bank. To be fair, a D/E ratio of 1.5 or lower is generally considered desirable for most companies, but the bank's reliance on borrowings is something to watch for, especially in a rising rate environment.

The company's debt structure is a mix of short-term liquidity needs and longer-term funding. Total borrowings hit $893.5 million at the end of the second quarter of 2025. A substantial portion of this debt is near-term, with about $250.0 million in borrowings set to mature in 2025, carrying a weighted average rate of 4.38% as of September 30, 2025. This maturity schedule means the bank is actively managing its refinancing risk right now.

The balance between debt and equity is managed through two key actions in 2025:

• Debt Financing: The bank uses borrowings to mitigate interest rate risk and for short-term liquidity. The current environment suggests they are prioritizing stability and funding costs.
• Equity Funding: Northfield Bancorp, Inc. is actively returning capital to shareholders, which reduces the equity base. They completed a $10.0 million stock repurchase plan in the second quarter of 2025, buying back 862,469 shares.

Reducing the share count via buybacks while maintaining a high debt level is a clear signal: management believes the stock is undervalued and is willing to increase financial leverage to enhance earnings per share. This is a common strategy, but it requires diligent management of the debt coming due. For a deeper dive into the bank's overall performance, check out Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You're looking for a clear picture of Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s ability to meet its short-term obligations, and for a bank, that means looking beyond the typical corporate metrics. The traditional current and quick ratios, which are often cited as 1.00 for NFBK, are less meaningful here because a bank's primary assets (loans) are not 'current' in the same way as inventory or accounts receivable for a manufacturer. Liquidity is about access to cash and readily marketable securities.

Assessing NFBK's Liquidity Position

The most important metric for NFBK's near-term health is its on-hand liquidity ratio, which measures liquid assets as a percentage of total assets. As of September 30, 2025, this ratio stood at 17.1%. That's a solid buffer, but it represents a decline from the 24.3% reported at the end of Q1 2025. The company has been defintely deploying excess cash into higher-yielding assets.

The core of NFBK's liquidity strength lies in its unpledged assets, which act as a secondary line of defense and can be quickly converted to cash or used as collateral for borrowing. This is where the real strength is.

• Cash and Cash Equivalents: $119.197 million as of September 30, 2025.
• Unpledged Securities/Loans: The company holds a significant pool of unencumbered assets, including unpledged securities and multifamily loans, which can be utilized for additional funding from the Federal Home Loan Bank and Federal Reserve Bank of New York.

Working Capital and Funding Trends

A bank's working capital is essentially its deposit base minus its short-term liabilities, and the trend here points to a shift in funding strategy. For the nine months ended September 30, 2025, NFBK's liquidity management involved a deliberate deployment of cash, but also a reliance on wholesale funding to offset deposit outflows.

Here's the quick math on the funding shift:

The decrease in deposits, a primary source of low-cost funding, was largely replaced by an increase in borrowings. This shift means a higher cost of funds, even though the net interest margin has been improving due to higher yields on assets. This is a key risk to monitor: replacing sticky, low-cost core deposits with potentially more volatile, higher-cost borrowings.

Cash Flow Statement Overview

For the nine months ended September 30, 2025, Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) reported a net income of $28.2 million, which is a strong driver for cash flow from operations (CFO). This is a significant increase from the $18.7 million reported in the comparable period of 2024.

• Operating Cash Flow: Strong, driven by the increased net income and net interest income, which rose by $15.9 million to $100.7 million for the nine months ended September 30, 2025.
• Investing Cash Flow: A net use of cash, as the company actively deployed liquidity into purchasing higher-yielding available-for-sale debt securities. Total assets reached $5.73 billion as of September 30, 2025.
• Financing Cash Flow: Characterized by the need to secure new funding (increased borrowings) to offset deposit outflows, plus capital management activities like the declaration of a quarterly cash dividend of $0.13 per share and the completion of a $10.0 million stock repurchase plan.

What this estimate hides is the potential stress if the deposit outflows accelerate. The reliance on borrowings is manageable now, but it is a structural vulnerability in a tightening credit environment. For a deeper dive into who is betting on NFBK's strategy, you should be Exploring Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Investor Profile: Who's Buying and Why?

Next Step: Portfolio Managers should model a 10% increase in the cost of borrowings against current net interest income to stress-test the profitability by the end of Q4 2025.

Valuation Analysis

You're looking to see if Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) is a bargain or a trap, and the quick answer is that it looks potentially undervalued based on traditional bank metrics, but the analyst consensus suggests caution. The market is pricing this bank well below its book value (tangible assets minus liabilities), which often signals a deep-value opportunity, but you have to understand why.

The core of any valuation starts with a few key multiples. For a regional bank like Northfield Bancorp, Price-to-Earnings (P/E) and Price-to-Book (P/B) are your primary tools. You can see the Mission Statement, Vision, & Core Values of Northfield Bancorp, Inc. (Staten Island, NY) (NFBK). to understand their long-term strategy, but the numbers tell the near-term story.

Here's the quick math on the key multiples for Northfield Bancorp, Inc. based on 2025 data:

• Price-to-Earnings (P/E) Ratio: The trailing twelve months (TTM) P/E is around 10.80. This is defintely lower than the broader market average, suggesting the stock is inexpensive relative to its earnings.
• Price-to-Book (P/B) Ratio: This is the big one for banks. Northfield Bancorp trades at a P/B of just 0.64. Trading below 1.0 means the market values the company less than the net value of its assets, which is a classic sign of being undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): We don't use this much for banks. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is less relevant because interest income and expense are central to a bank's core operations, not just capital structure.

The P/B ratio of 0.64 is a strong signal, but it usually reflects market concerns about asset quality or future earnings power, especially in a shifting interest rate environment. You're buying a dollar of assets for about 64 cents right now.

Stock Price and Trend

The stock price trend over the last year explains the low valuation multiples. Northfield Bancorp has seen a significant drop, with the stock price decreasing by 22.22% over the last 12 months leading up to November 2025. The recent closing price is around $10.50.

This decline is a headwind, not a tailwind. The stock has traded in a 52-week range between a low of $9.34 and a high of $14.37. The current price sits closer to the low end of that range, which is what you'd expect given the year-long performance slump. The market is clearly punishing the stock for something, likely tied to broader regional bank sentiment and interest rate risk.

Dividend and Payout Health

For income-focused investors, the dividend story is solid and sustainable. Northfield Bancorp has declared a quarterly cash dividend of $0.13 per share. This translates to an estimated annual dividend of $0.52 for 2025.

The dividend yield is attractive, sitting at about 4.95%. More importantly, the dividend payout ratio (the percentage of earnings paid out as dividends) is a healthy 53.61%. This means the bank is paying out just over half its earnings, leaving plenty of room to reinvest in the business or absorb an earnings dip without cutting the dividend. The projected payout ratio for next year drops even lower to 45.61%, suggesting the dividend is well-covered.

Analyst Consensus and Price Targets

So, is the stock a Buy? Not according to the analysts. The consensus rating on Northfield Bancorp is a firm Hold. This consensus is based on an analysis of 7 analysts, with the breakdown being 1 Buy, 6 Hold, and 0 Sell ratings.

The median 12-month price target is $12.04. This target represents a potential upside of over 14% from the current price of around $10.50, but the 'Hold' rating tells you the analysts aren't convinced the upside is a sure thing. They see value but aren't ready to pound the table and call it a clear Buy until they see a catalyst for the stock to close the gap between its price and book value.

Risk Factors

You're looking at Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s strong net income of $28.2 million for the first nine months of 2025, and that's a great sign. But a seasoned analyst knows you must map the risks before committing capital. For NFBK, the near-term concerns center on credit quality in specific loan segments and the ever-present interest rate environment.

The Credit Quality Pressure Points

The biggest internal risk right now is the potential for credit losses, even though the overall non-performing loan ratio remains manageable. Specifically, the bank is actively monitoring its small business unsecured commercial and industrial (C&I) loan portfolio, which totaled $22.4 million as of September 30, 2025. This is a higher-risk segment than secured real estate, and it's where the bank has seen charge-offs before.

Also, watch the non-accrual loans (loans where interest payments are significantly past due). Management has pointed to an increase here, tied primarily to a single, specific commercial real estate (CRE) relationship. This kind of concentration risk means one bad deal can disproportionately impact quarterly results. That's why you see the bank being cautious; total loans decreased by $126.8 million, or 3.1%, as of September 30, 2025, as they prioritize asset quality over aggressive growth. That's defintely a smart move.

• Monitor C&I loan portfolio for increased credit losses.
• Track non-accrual loans tied to the specific CRE relationship.
• Note the provision for credit losses, which rose in the first half of 2025.

External and Financial Risks: The Rate Game

As a community bank, Northfield Bancorp, Inc. (Staten Island, NY) is highly exposed to external factors like the Federal Reserve's monetary policy. The primary external risk is the interest rate environment. While they've managed to increase net interest income to $34.51 million in Q3 2025 by lowering funding costs, a sudden shift in rates could quickly compress their net interest margin (NIM). They also face competition for deposits, forcing them to pay more to retain customer funds, especially as the percentage of uninsured deposits in the portfolio changes.

Regulatory risk is also a constant. Changes in capital requirements, like the Community Bank Leverage Ratio (CBLR), or new compliance costs could impact profitability. However, NFBK is well-capitalized, with its estimated CBLR ratios at 12.09% for the Company and 12.56% for the Bank as of June 30, 2025, comfortably above the 9% minimum to be considered well-capitalized. You can get more context on the shareholder base by Exploring Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Investor Profile: Who's Buying and Why?

Mitigation and Defensive Positioning

The company is clearly focused on defense. Their strategy is simple: strengthen the balance sheet and manage risk. Here's the quick math on their liquidity: their on-hand liquidity ratio was a solid 18.3% as of June 30, 2025. They are also moving aggressively into lower-risk assets, increasing their available-for-sale debt securities portfolio by $230.1 million, or 20.9%, to $1.33 billion as of September 30, 2025. That's a clear de-risking move.

Their operational strategy also includes technology upgrades, with a new best-in-class digital banking solution launching in 2025. This helps them compete for core deposits and mitigates the long-term risk of being outpaced by larger, more technology-focused institutions. Still, they must manage the transition risk of any large-scale technology implementation, plus the ongoing threat of cyber security and fraud.

Here is a snapshot of the core financial defense:

Growth Opportunities

You're looking past the current quarter's numbers and asking the right question: Where does Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) find its next leg of growth? The answer isn't in big, splashy acquisitions, but in the disciplined execution of core banking strategy, which is already paying off handsomely in their New York and New Jersey markets.

The primary engine for future performance is a relentless focus on net interest margin (NIM) expansion and capital efficiency. Here's the quick math: For the nine months ending September 30, 2025, the company reported a net income of $28.2 million, a significant 51% jump year-over-year. This isn't magic; it's a direct result of management successfully lowering funding costs while increasing yields on interest-earning assets. That's how you drive profitability in a challenging rate environment.

The future revenue growth projections and earnings estimates reflect this operational success. Analysts expect the company's annual revenue for the 2025 fiscal year to reach approximately $149.6 million. More importantly, the earnings per share (EPS) forecast for the next year (2026) is projected to grow substantially, from an estimated $0.82 per share to approximately $1.14 per share, representing a growth of 39.02%. That's a defintely strong signal for investors.

The strategic initiatives driving this growth are clear and actionable:

• Disciplined Lending and Deposit Gathering: The core focus remains on prudent asset-liability management.
• Net Interest Margin Expansion: Boosting the NIM, which reached 2.57% in Q2 2025, by optimizing the balance sheet.
• Capital Deployment: The company is actively returning capital to shareholders, having completed a $10 million stock repurchase plan in Q2 2025 alone.
• Non-Interest Income Diversification: A boost from sources like bank-owned life insurance (BOLI) and gains on trading securities is helping stabilize revenue.

What this estimate hides is the underlying credit risk management. The company has done a solid job here, with non-performing loans to total loans improving to just 0.36% as of June 30, 2025. Good growth is always built on clean books.

Northfield Bancorp, Inc.'s competitive advantage, which positions it for sustained growth, is its hybrid service model. It's a community-oriented bank, serving the region since 1887, but it also leverages modern digital banking platforms to enhance customer convenience. This blend of personalized, face-to-face service and technology-driven solutions helps them build lasting customer relationships and maintain a strong deposit base in a competitive market. Plus, the company maintains strong liquidity, with over $800 million in unpledged available-for-sale securities at the end of Q2 2025.

To put the recent performance in context, here are the key financial metrics from the first three quarters of 2025:

If you want to dig deeper into the company's balance sheet and valuation, you can read the full analysis at Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors.