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

Are you keeping a close watch on your investments? Have you considered the financial health of Northfield Bancorp, Inc. (NFBK)? For the year 2024, the company reported a net income of $29.9 million, translating to diluted earnings per share of $0.72. But how does this translate into an investment opportunity for you? Keep reading to find out more about their key financial data, including a 5.4% dividend yield and a community bank leverage ratio of 12.11%, and what it means for investors like you.

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Revenue Analysis

Understanding Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s revenue streams involves analyzing its primary sources, growth rates, and the contribution of different business segments.

Here's a breakdown:

• Primary Revenue Sources: NFBK generates revenue primarily through:
  • Originating multifamily and other commercial real estate loans
  • Purchasing investment securities, including mortgage-backed securities and corporate bonds
  • Deposit services
  • Lending products (multifamily, commercial real estate, construction, land loans, home equity loans, and lines of credit)
• Year-Over-Year Revenue Growth Rate:
  • For the fiscal year ending December 31, 2024, NFBK reported revenue of $127.03 million.
  • This represents a decrease of $8.18 million, or 6.05%, compared to the $135.21 million in revenue for 2023.
  • Looking back, revenue was $161.81 million in 2022, $176.29 million in 2021, and $128.54 million in 2020.
• Contribution of Business Segments:
  • NFBK operates as a community-focused financial institution, with its primary segment being community banking.
  • The bank focuses on originating loans and providing deposit products to customers.
  • In 2024, the commercial loan portfolio (owner-occupied and commercial & industrial) amounted to $546.7 million.
• Analysis of Significant Changes in Revenue Streams:
  • In 2024, NFBK experienced a decrease in net interest income of $10.2 million, or 8.2%, due to interest-bearing liabilities repricing faster than interest-earning assets.
  • Non-interest income increased by $4.9 million, or 41.4%, primarily due to a $3.4 million gain on the sale of property and increased fees and service charges.

To gain more insight into Northfield Bancorp, Inc.'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Northfield Bancorp, Inc. (Staten Island, NY) (NFBK).

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Profitability Metrics

Analyzing Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins. By evaluating these figures and their trends over time, investors can gain a comprehensive understanding of NFBK's ability to generate profits.

Profitability ratios are crucial for comparing NFBK's performance against industry averages and competitors. These ratios help in assessing how effectively the company manages its costs and generates revenue. Additionally, an in-depth analysis of operational efficiency, such as cost management strategies and gross margin trends, offers valuable perspectives on the sustainability of NFBK's profitability.

Northfield Bancorp, Inc. reported a net income of $44.4 million for the year 2023, compared to $52.4 million in 2022. The return on average assets was 0.94% in 2023, down from 1.12% in the previous year, and the return on average equity decreased to 9.35% from 11.12%. Furthermore, the net interest margin declined to 2.98% in 2023 from 3.41% in 2022.

Key profitability metrics for Northfield Bancorp, Inc. include:

• Gross Profit Margin: Measures the percentage of revenue that exceeds the cost of goods sold (COGS).
• Operating Profit Margin: Indicates the percentage of revenue remaining after deducting operating expenses, excluding interest and taxes.
• Net Profit Margin: Represents the percentage of revenue that remains as net income after all expenses, including interest and taxes, are accounted for.

Analyzing trends in these margins over several periods can reveal whether Northfield Bancorp, Inc. is improving its profitability or facing challenges. A rising net profit margin, for example, suggests that the company is becoming more efficient at converting revenue into profit.

A comparison of Northfield Bancorp, Inc.'s profitability ratios with industry peers provides context on how well the company is performing relative to its competitors. If NFBK's net profit margin is higher than the industry average, it may indicate a competitive advantage. The efficiency in managing operational costs significantly impacts profitability. Effective cost management can lead to higher gross margins and, ultimately, better profitability.

Here's a look at some of Northfield Bancorp's key financial data:

These metrics are vital for investors to understand the financial health and operational effectiveness of Northfield Bancorp, Inc.

Learn more about Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) in this related article: Exploring Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Investor Profile: Who’s Buying and Why?

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Debt vs. Equity Structure

Understanding how Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) finances its operations is crucial for investors. This involves looking at the levels and types of debt the company holds, as well as how it balances debt with equity.

Analyzing Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s debt structure involves examining both its short-term and long-term debt obligations. Short-term debt includes liabilities due within a year, while long-term debt consists of obligations extending beyond a year. A balanced approach to managing both types of debt is indicative of sound financial management.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater reliance on debt, which can amplify both profits and losses. Comparing Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s debt-to-equity ratio with industry averages provides insights into its relative financial risk. Industry standards vary, so it's essential to consider the specific context of the banking sector.

Recent activities such as debt issuances, credit rating changes, and refinancing efforts offer clues about Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s financial strategy. New debt issuances might fund expansion or acquisitions, while improved credit ratings can lower borrowing costs. Refinancing activities could indicate efforts to optimize the company's debt profile.

Balancing debt and equity is a strategic decision for Northfield Bancorp, Inc. (Staten Island, NY) (NFBK). Debt financing can provide capital for growth initiatives, but it also increases financial risk. Equity funding, on the other hand, dilutes ownership but reduces leverage. The company's approach to this balance reflects its risk tolerance and growth objectives.

Here are factors affecting the balance between debt financing and equity funding:

• Market Conditions: Interest rates and investor sentiment influence the attractiveness of debt and equity markets.
• Growth Strategy: Ambitious growth plans may require more debt financing.
• Regulatory Requirements: Capital adequacy ratios and other regulations impact the optimal capital structure for banks.
• Shareholder Expectations: Investors' preferences for dividends and capital appreciation can influence equity decisions.

Explore more insights into Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s financial health: Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Liquidity and Solvency

A crucial aspect of assessing Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s financial health involves understanding its liquidity position. Liquidity ratios, working capital trends, and cash flow statements provide insights into the company's ability to meet its short-term obligations and fund its operations.

Current and Quick Ratios:

The current and quick ratios are key indicators of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates a stronger liquidity position. For the fiscal year 2024, Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s liquidity can be evaluated based on these metrics.

• Current Ratio: Measures the ability to pay short-term obligations with current assets.
• Quick Ratio: Similar to the current ratio but excludes inventory, providing a more conservative view of liquidity.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a measure of a company's short-term financial health. Monitoring the trends in working capital can reveal whether Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) is efficiently managing its short-term resources. An increase in working capital generally indicates improved liquidity, while a decrease may signal potential challenges.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing these trends helps in understanding how Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) generates and uses cash. Here’s a breakdown:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital, and cash flow statements, it's important to identify any potential liquidity concerns or strengths for Northfield Bancorp, Inc. (Staten Island, NY) (NFBK). Consistent positive operating cash flow and healthy liquidity ratios would indicate a strong liquidity position. Conversely, declining working capital or negative operating cash flow could raise concerns about the company's ability to meet its short-term obligations.

Here is a sample table illustrating key liquidity metrics (Note: The data below is illustrative and should be replaced with actual 2024 figures for Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)):

For more insights into Northfield Bancorp, Inc. (Staten Island, NY) (NFBK)'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Northfield Bancorp, Inc. (Staten Island, NY) (NFBK).

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Valuation Analysis

Determining whether Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) is overvalued or undervalued requires a comprehensive look at several key financial metrics. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, information on Northfield Bancorp, Inc.'s valuation metrics is limited. As of December 31, 2023, Northfield Bancorp reported total assets of $5.5 billion. Without up-to-date ratios like P/E, P/B, and EV/EBITDA, it's challenging to definitively assess its valuation relative to its peers. Monitoring these metrics over time provides a clearer picture.

Analyzing stock price trends is also crucial. Examining Northfield Bancorp, Inc.'s stock performance over the last 12 months or longer can reveal patterns and investor sentiment. A consistent upward trend might suggest growing confidence in the company, while a downward trend could indicate concerns. Significant fluctuations can point to market volatility or company-specific events affecting the stock price.

Dividend yield and payout ratios are essential for income-focused investors. If Northfield Bancorp, Inc. pays dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (dividends paid as a percentage of earnings) shows the sustainability of the dividend payments. A high payout ratio may suggest limited room for future dividend increases, while a low ratio indicates potential for growth.

Analyst consensus provides insights from financial professionals who regularly cover Northfield Bancorp, Inc. These analysts offer ratings (buy, hold, or sell) and price targets based on their analysis of the company's financials, industry trends, and overall economic outlook. A consensus of 'buy' ratings suggests analysts believe the stock is undervalued, while 'hold' or 'sell' ratings indicate a less optimistic outlook.

For additional insights into Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) investor profiles, consider exploring this resource: Exploring Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Investor Profile: Who’s Buying and Why?

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Risk Factors

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these potential challenges is crucial for investors assessing the company's stability and future prospects. For further insights, you might find this resource helpful: Breaking Down Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Financial Health: Key Insights for Investors.

Here's an overview of key risks:

• Industry Competition: The financial services industry is highly competitive. Northfield Bancorp faces competition from other banks, credit unions, and non-bank financial institutions. Increased competition can lead to lower interest rates, reduced loan volume, and decreased profitability.
• Regulatory Changes: Banks are subject to extensive regulation, and changes in laws and regulations can significantly impact Northfield Bancorp's operations and profitability. These changes may include regulations related to capital requirements, lending practices, and consumer protection.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in real estate values can all affect Northfield Bancorp's financial performance. For example, rising interest rates can reduce demand for loans, while declining real estate values can lead to increased loan losses.

More specifically, recent earnings reports and filings may highlight several operational, financial, and strategic risks. These could include:

• Credit Risk: The risk that borrowers will default on their loans. This is a primary risk for any lending institution.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact the bank's earnings. This can occur if the bank's assets and liabilities are not adequately matched in terms of interest rate sensitivity.
• Liquidity Risk: The risk that the bank will not have sufficient cash to meet its obligations. This can occur if the bank experiences unexpected deposit outflows or is unable to access funding markets.
• Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. This can include fraud, cyberattacks, and other disruptions.

Mitigation strategies and plans are crucial for managing these risks. While specific details may vary, typical strategies include:

• Diversification: Diversifying the loan portfolio across different industries and geographic regions to reduce credit risk.
• Interest Rate Hedging: Using financial instruments to hedge against interest rate risk.
• Strong Liquidity Management: Maintaining a strong liquidity position by holding sufficient cash and marketable securities.
• Enhanced Cybersecurity Measures: Implementing robust cybersecurity measures to protect against cyberattacks and data breaches.
• Compliance Programs: Establishing comprehensive compliance programs to ensure adherence to all applicable laws and regulations.

Northfield Bancorp, Inc. (Staten Island, NY) (NFBK) Growth Opportunities

Several factors indicate future growth prospects for Northfield Bancorp, Inc. (Staten Island, NY) (NFBK). These include strategic initiatives, market positioning, and financial management.

Key Growth Drivers:

• Strategic Initiatives: Northfield Bancorp is focused on core deposit growth, particularly in low-cost transaction accounts, and diversifying its loan portfolio. The company launched a new residential mortgage program and affordable residential mortgage and home equity programs in 2024.
• Market Expansion: Northfield Bank has been serving the financial needs of its community since 1887, operating 37 branch locations in Staten Island, Brooklyn, and New Jersey.
• Stock Repurchase Program: In February 2025, Northfield Bancorp approved a new $5.0 million stock repurchase program, starting in March 2025.
• Acquisition Synergies: Northfield's acquisition of VSB Bancorp, Inc. in 2019 strengthened its competitive position in Staten Island and lowered funding costs. This merger added approximately $325 million in deposits and $157 million in loans.

Financial Performance and Outlook:

While net income decreased from $37.7 million in 2023 to $29.9 million in 2024, Northfield Bancorp is taking steps to enhance future performance.

• Earnings Growth: Earnings for Northfield Bancorp, Inc. (Staten Island, NY) are expected to grow by 39.02% in the coming year, from $0.82 to $1.14 per share.
• Net Interest Margin: The net interest margin increased by 10 basis points to 2.18% for the fourth quarter of 2024, compared to 2.08% for the previous quarter.
• Deposit Growth: Deposits (excluding brokered) increased by $81.6 million, or 8.6% annualized, in the fourth quarter of 2024.

Competitive Advantages:

Northfield Bancorp possesses several competitive advantages that position it for sustained growth:

• Strong Capital Position: Northfield Bancorp maintains a strong capital position, ensuring it can meet commitments and regulatory requirements. The company's community bank leverage ratio stood above well capitalized at 12.11% at the end of 2024.
• Market Share: As of June 30, 2024, Northfield Bank ranked sixth in deposit market share in Staten Island, New York, and 17th in Brooklyn, New York.
• Loan Portfolio Shift: The bank's principal lending activity has shifted from multifamily real estate loans to commercial and industrial and owner-occupied commercial real estate loans.
• Commitment to Community: Northfield is dedicated to supporting local organizations through the Northfield Bank Foundation, focusing on housing, economic development, healthcare, education, and the arts.

Strategic Initiatives and Partnerships:

Northfield Bancorp is actively involved in strategic initiatives and partnerships to enhance its community presence and financial literacy:

• Community Support: The company supports organizations like the Staten Island Economic Development Corporation and Junior Achievement of New Jersey to improve financial literacy.
• New Mortgage Programs: The launch of new residential mortgage and home equity programs aims to make homeownership more accessible.

To understand Northfield Bancorp's guiding principles, explore Mission Statement, Vision, & Core Values of Northfield Bancorp, Inc. (Staten Island, NY) (NFBK).

Challenges and Risks:

Northfield Bancorp faces challenges including regulatory risks and managing interest rate risk. The level of commercial real estate loan concentrations also poses a risk.