Northfield Bancorp's Strong Q4 and Year End 2024 Results: A Deep Dive

Northfield Bancorp, Inc. (NFBK) has reported its fourth quarter and year-end 2024 results, showcasing a solid financial performance that has investors buzzing. The holding company for Northfield Bank delivered net income of $11.3 million, or $0.27 per diluted share, for the quarter ended December 31, 2024, compared to $6.5 million, or $0.16 per diluted share, for the quarter ended September 30, 2024, and $8.2 million, or $0.19 per diluted share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, net income totaled $29.9 million, or $0.72 per diluted share, compared to $37.7 million, or $0.86 per diluted share, for the year ended December 31, 2023.



The company's strong performance can be attributed to several factors, including an increase in net interest income and net interest margin, prudent management of operating expenses, and a gain on the sale of a Staten Island branch. Additionally, Northfield Bancorp maintained strong asset quality, with non-performing loans to total loans at 0.51% compared to 0.75% at September 30, 2024.



Northfield Bancorp's net interest margin (NIM) has been a significant driver of its financial performance in 2024. The company's NIM increased by 10 basis points to 2.18% in the fourth quarter of 2024 compared to the trailing quarter, and it has remained relatively stable throughout the year. This increase in NIM is largely driven by a decrease in the average cost of interest-bearing liabilities, which decreased by 10 basis points to 2.85% for the current quarter compared to the trailing quarter. The decrease in the cost of interest-bearing liabilities is primarily due to a 10 basis point decrease in the cost of interest-bearing deposits to 1.95% and a 27 basis point decrease in the cost of borrowings to 3.85%.

Looking ahead, Northfield Bancorp is well-positioned to maintain its strong financial performance. The company has declared a cash dividend of $0.13 per share, payable on February 19, 2025, to stockholders of record as of February 5, 2025. Steven M. Klein, the Company’s Chairman, President, and Chief Executive Officer, stated, "We delivered solid financial performance for the quarter, increasing our net interest income and net interest margin, prudently managing our operating expenses, maintaining strong asset quality, and managing our strong capital levels. While significant economic and market risks remain, recent decreases in short-term market interest rates, and other factors, should provide our marketplace and the Company with growth opportunities in the new year."



In conclusion, Northfield Bancorp's strong fourth quarter and year-end 2024 results demonstrate the company's ability to navigate the current economic landscape and capitalize on opportunities in the marketplace. With a solid financial performance, a well-managed loan portfolio, and a strong capital position, Northfield Bancorp is poised for continued success in the coming year. Investors should keep a close eye on the company's progress as it continues to execute on its strategic initiatives and adapt to the ever-changing market conditions.