What factors drove NFBK's earnings volatility in 2024?

Northfield Bancorp Inc. (NFBK) experienced fluctuations in its earnings in 2024 due to a combination of factors: 1. **Net Interest Income (NII) and Net Interest Margin (NIM)**: The NII increased by $803,000, or 2.9%, over the trailing quarter to $28.7 million, while the NIM expanded by six basis points to 2.09%. This indicates a positive trend in the company's core banking operations. 2. **Loan Balances and Portfolio Shifts**: Loan balances declined from the previous quarter, with decreases in various loan categories such as multifamily, commercial mortgage, one-to-four family, and construction and land loans. However, there were increases in home equity loans and construction and land loans. These shifts in the loan portfolio could have impacted the net interest income and overall profitability. 3. **Deposit Dynamics**: Deposits decreased by $24 million, or 2.5% annualized, compared to the previous quarter but increased by $20 million, or 1.1% annualized, from December 31, 2023. The cost of deposits at June 30, 2024, was 2.10%, up from 2.07% at March 31, 2024. Changes in deposit base and costs can affect the net interest margin and overall funding costs. 4. **Strategic Focus and Challenges**: The company faced challenges such as decreased loan balances and increased non-performing loans. These challenges, along with strategic shifts, likely impacted the net income and earnings per share (EPS) figures. 5. **Market Interest Rates and Economic Conditions**: The impact of lower short-term market interest rates on economic activity and the company's liquidity and capital deployment strategies could have influenced the company's financial performance. 6. **Annual Comparisons and Seasonality**: Earnings comparisons in 2024 were made with previous years, which may not fully capture the nuances of seasonal variations or one-time events that could affect profitability. 7. **Dividend and Stock Repurchase Activity**: The company engaged in stock repurchases and declared cash dividends, which could have implications for earnings as they affect the capital structure and may impact the net income due to dividend expenses. In summary, NFBK's earnings volatility in 2024 was influenced by changes in its core banking operations, loan portfolio, deposit dynamics, strategic initiatives, and external economic factors.