Credit Losses and Provisions - The allowance for credit losses decreased to 35.183millionin2024from37.535 million in 2023, reflecting a reduction in the overall loan portfolio[82]. - Total charge-offs for 2024 amounted to 7.009million,comparedto6.580 million in 2023, indicating an increase in credit losses[82]. - The provision for credit losses increased to 4.281millionin2024from1.353 million in 2023, suggesting a more conservative approach to potential future losses[82]. - The allowance for credit losses to total non-performing loans ratio decreased to 227.72% in 2024 from 328.30% in 2023, indicating a decline in coverage for non-performing loans[82]. - The allowance for credit losses allocated to commercial mortgage loans was 20.949million,representing86.714,281,000 in 2024, compared to 1,353,000in2023,reflectingasubstantialincreaseincreditlossprovisions[385].−Theallowanceforcreditlossesonloansisdeterminedbasedonhistoricalportfoliolossexperience,currentborrower−specificriskcharacteristics,andforecastsoffutureeconomicconditions[418].−TheCompanyhasidentifiedkeyeconomicvariablesthatcorrelatewithhistoricalcreditperformance,includingGrossDomesticProductandunemploymentrates[421].−Theallowanceforcreditlossesforoff−balancesheetcreditexposuresisadjustedforanaveragehistoricalfundingrate[425].−TheCompanyhasceasedtorecognizeormeasurenewTDRssincetheadoptionofASU2022−02,butexistingTDRsremainuntilsettled[428].FinancialPerformance−Netincomefor2024was29,945,000, down from 37,669,000in2023,indicatingadecreaseofabout20.55,666,378,000 in 2024 from 5,598,396,000in2023,reflectingagrowthofapproximately1.22110,204,000 in 2024 from 123,314,000in2023,adeclineofabout10.65237,908,000 in 2024, up from 208,795,000in2023,representinganincreaseofapproximately13.9316,822,000 in 2024 from 11,896,000in2023,anincreaseofapproximately41.341,505,000, a decline of 22.4% compared to 53,558,000in2023[387].−Thecompanyreportedabasicnetincomepercommonshareof0.72 in 2024, down from 0.86in2023,adecreaseofabout16.28263.4 million in 2024 from 100.0millionin2023,representinga163.4859.3 million at the end of 2024, accounting for 20.8% of total deposits, up from 768.6millionor19.81.82 billion in 2024, with adjusted uninsured deposits at 896.5million,representing21.73,890.2 million, with a year-over-year increase of 2.23% from 3,805.4millionin2023[103].−Non−interestbearingdemanddepositsdecreasedto694.5 million, representing 17.85% of total deposits, down from 20.26% in 2023[103]. - NOW and interest-bearing demand deposits increased to 1,280.9million,accountingfor32.93260,042,000, contrasting with a net decrease of 271,784,000in2023[392].SecuritiesandInvestments−Thecorporatebondportfolioconsistedmostlyofinvestment−gradesecuritieswithremainingmaturitiesgenerallyshorterthantenyearsasofDecember31,2024[94].−Thefairvalueofthetradingportfolioincreasedto13.9 million in 2024 from 12.5millionin2023,reflectinggrowthinmutualfundinvestments[95].−AsofDecember31,2024,totaldebtsecuritiesavailable−for−saleamountedto1,129.8 million, an increase from 1,100.8millionin2023,reflectingagrowthofapproximately2.6734.1 million in GSE REMICs, showing stability compared to 727.3millionin2023[96].−Theestimatedfairvalueofmortgage−backedsecuritieswas989.0 million as of December 31, 2024, down from 550.6millionin2023[458].−TheCompanyrecognizedatotalof1,366 thousand in gross unrealized gains on debt securities available-for-sale as of December 31, 2024[458]. - The Company held nine pass-through mortgage-backed debt securities held-to-maturity in a continuous unrealized loss position of twelve months or greater at December 31, 2024[471]. Capital and Regulatory Compliance - The company exceeded all capital adequacy requirements as of December 31, 2024, and is categorized as a well-capitalized institution[126]. - Federal law requires federal bank regulators to take "prompt corrective action" for institutions not meeting minimum capital requirements, with five capital categories defined[128]. - An institution is deemed "well capitalized" if it has a total risk-based capital ratio of 10.0% or greater and a Tier 1 risk-based capital ratio of 8.0% or greater[128]. - Northfield Bancorp exceeded the FRB's consolidated capital requirements as of December 31, 2024[147]. - The FRB's "source of strength" doctrine requires holding companies to support their subsidiary depository institutions during financial stress[148]. - Northfield Bank is a member of the Deposit Insurance Fund, with deposit accounts insured by the FDIC up to 250,000peraccountownershipcategory[137].StockholderInformation−Thetotalstockholders′equityincreasedto704,696,000 in 2024 from 699,445,000in2023,aslightincreaseofapproximately0.360.52 per common share in both 2023 and 2024, totaling 21,826,000in2024[390].−Thenumberofsharesoutstandingdecreasedto42,903,598in2024from44,524,929in2023[390].−Theaveragecostoftreasurystockrepurchasedin2024was10.24 per share, with a total repurchase of 1,802,072 shares[390]. - Stock compensation expense for 2024 was 2,341,000,comparedto2,383,000 in 2023, reflecting a slight decrease[390]. Cash Flow and Liquidity - Net cash provided by operating activities for 2024 was 31,105,000,downfrom46,970,000 in 2023, a decrease of about 34%[392]. - Total cash and cash equivalents at the end of 2024 were 167,744,000,comparedto229,506,000 at the end of 2023, reflecting a decrease of approximately 27%[392]. - The company reported a net cash used in investing activities of 118,491,000in2024,comparedtoanetcashprovidedof193,869,000 in 2023[392]. - The company experienced a net cash provided by financing activities of 25,624,000in2024,comparedtoanetcashusedof57,132,000 in 2023[392]. - The company reported a net decrease in cash and cash equivalents of 61,762,000in2024,comparedtoanincreaseof183,707,000 in 2023[392].
Northfield Bancorp(NFBK)2025-03-03 21:22