EX-99.1 2 nfbkq32019exhibit991.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1
 
PRESS RELEASE DATED OCTOBER 23, 2019



Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519
FOR IMMEDIATE RELEASE
 
 
NORTHFIELD BANCORP, INC. ANNOUNCES
THIRD QUARTER 2019 RESULTS

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

•
DILUTED EARNINGS PER SHARE INCREASED 65% TO $0.28 FOR THE THIRD QUARTER OF 2019, COMPARED TO $0.17 PER DILUTED SHARE FOR THE SECOND QUARTER OF 2019, AND 47% COMPARED TO $0.19 PER DILUTED SHARE FOR THE THIRD QUARTER OF 2018
◦
Current quarter increase over both trailing and prior year quarters reflects the benefit of $2.4 million, or $0.05 per diluted share, of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the related policies, and $1.6 million, after tax, or $0.03 per diluted share, of income related to recoveries on loans previously charged-off
•
NET INTEREST INCOME INCREASED $1.7 MILLION, OR 6.1%, OVER PRIOR QUARTER AND 3.2% FROM COMPARABLE PRIOR YEAR QUARTER
•
NET INTEREST MARGIN INCREASED TWO BASIS POINTS TO 2.57% FOR THE CURRENT QUARTER AS COMPARED TO 2.55% FOR THE PRIOR QUARTER AND DECREASED 18 BASIS POINTS FROM COMPARABLE PRIOR YEAR QUARTER
•
ORIGINATED LOANS INCREASED $58.9 MILLION, OR 8.4% ANNUALIZED, FOR THE QUARTER AND $180.9 MILLION, OR 9.0% ANNUALIZED, FROM DECEMBER 31, 2018
•
DEPOSITS, EXCLUDING BROKERED, INCREASED $21.4 MILLION, OR 2.8% ANNUALIZED, FOR THE QUARTER AND $72.5 MILLION, OR 3.2% ANNUALIZED, FROM DECEMBER 31, 2018
•
REPURCHASED 360,965 SHARES DURING THE QUARTER AT A TOTAL COST OF $5.6 MILLION
•
CASH DIVIDEND DECLARED OF $0.11 PER SHARE OF COMMON STOCK, PAYABLE NOVEMBER 20, 2019, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 6, 2019

WOODBRIDGE, N.J., OCTOBER 23, 2019 -- NORTHFIELD BANCORP, INC. (Nasdaq:NFBK), the holding company for Northfield Bank, reported diluted earnings per common share of $0.28 for the quarter ended September 30, 2019, as compared to $0.17 per diluted share for the quarter ended June 30, 2019, and $0.19 per diluted share for the quarter ended September 30, 2018. For both nine month periods ended September 30, 2019, and September 30, 2018, diluted earnings per common share totaled $0.64. Earnings for the quarter and nine months ended September 30, 2019, included $2.4 million, or $0.05 per diluted share, of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the policies, as well as $1.6 million, after tax, or $0.03 per diluted share, of income related to recoveries on loans previously charged-off. Earnings for the nine months ended September 30, 2018, included excess tax benefits related to the exercise or vesting of equity awards of $2.2 million, or $0.05 per diluted share. There were no material excess tax benefits for the quarter or nine months ended September 30, 2019, or for the quarter ended June 30, 2019.
Commenting on the quarter, Steven M. Klein, the Company’s President and Chief Executive Officer noted, “We reported strong financial results for the three-months ended September 30, 2019, as we remained focused on investing in our people, and the customer experience, to build both retail and business banking relationships and stockholder value.” Mr. Klein continued, “For the quarter, we prudently grew both loans and deposits, managed our net interest margin and operating expenses in a highly competitive operating environment, and deployed our strong capital base through stock repurchases to produce increased earnings for our stockholders.”
Mr. Klein further noted, “I’m pleased to announce that the Board of Directors has declared a dividend of $0.11 per common share, payable on November 20, 2019, to stockholders of record on November 6, 2019.”


1


Results of Operations
Comparison of Operating Results for the Nine Months Ended September 30, 2019 and 2018
 
Net income was $30.1 million for both the nine months ended September 30, 2019 and September 30, 2018. Significant variances from the comparable prior year period are as follows: a $3.1 million increase in non-interest income, a $2.8 million decrease in the provision for loan losses, a $3.6 million increase in non-interest expense, and a $2.4 million increase in income tax expense.
 
Net interest income remained largely unchanged at $83.3 million for the nine months ended September 30, 2019, compared to $83.2 million for the nine months ended September 30, 2018, as a $396.0 million, or 10.1%, increase in our average interest-earning assets was offset by a 26 basis point decrease in our net interest margin to 2.58%. The decrease in net interest margin was primarily due to the increased cost of our interest-bearing liabilities, which increased 42 basis points to 1.52% for the nine months ended September 30, 2019, from 1.10% for the nine months ended September 30, 2018, while yields on interest-earning assets increased 10 basis points to 3.80% for the nine months ended September 30, 2019, from 3.70% for the nine months ended September 30, 2018. The increase in yields on interest-earning assets was primarily driven by higher yields on loans and securities. The increase in our average interest-earning assets was primarily due to increases in average loans outstanding of $100.2 million, average mortgage-backed securities of $201.0 million, and average other securities of $100.7 million. Net interest income for the nine months ended September 30, 2019 included loan prepayment income of $1.2 million as compared to $1.5 million for the nine months ended September 30, 2018. Also included in net interest income for the nine months ended September 30, 2019 is $314,000 of interest income recorded from the pay-off of a non-accrual loan.

The provision for loan losses decreased by $2.8 million to a negative provision of $750,000 for the nine months ended September 30, 2019, compared to a provision of $2.0 million for the nine months ended September 30, 2018. The negative provision was primarily related to a $1.8 million recovery on a loan previously charged-off, partially offset by a $521,000 charge-off on an impaired commercial real estate loan, and loan growth. Net recoveries for the nine months ended September 30, 2019, were $1.3 million compared to net charge-offs of $481,000 for the nine months ended September 30, 2018.

Non-interest income increased $3.1 million, or 41.8%, to $10.6 million for the nine months ended September 30, 2019, from $7.5 million for the nine months ended September 30, 2018, primarily due to an increase of $2.3 million in income on bank owned life insurance, attributable to insurance proceeds in excess of the related cash surrender value of the policies, and a $901,000 increase in gains on securities transactions, net (which include gains on available-for-sale debt securities and gains on trading securities). For the nine months ended September 30, 2019, gains on securities transactions, net, included gains of $1.5 million related to the Company’s trading portfolio, compared to gains of $714,000 in the comparative prior year period. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the Company's deferred compensation plan (the “Plan”). The participants of this Plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the Plan.
    
Non-interest expense increased $3.6 million, or 6.9%, to $54.8 million for the nine months ended September 30, 2019, compared to $51.3 million for the nine months ended September 30, 2018. This is due primarily to a $2.2 million increase in employee compensation and benefits, $742,000 of which is related to the Company's deferred compensation plan, which is described above and has no effect on net income, with the remainder attributable to increased costs associated with new hires related to a branch opening and new lending personnel, merit increases effective January 1, 2019, and higher medical benefit cost, partially offset by a decrease in equity award expense. Additionally, there was a $425,000 increase in occupancy costs, primarily attributable to higher rent expense related to a new branch opening, an increase of $690,000 in data processing costs, related to our continued strategic initiative to enhance our customers experience and growth in the number of accounts we service, and an increase of $1.0 million in advertising expense, attributable to the timing of advertising programs and increased expenditure focused on driving growth. These increases were partially offset by decreases of $275,000 in federal insurance premiums due to a reduction in our deposit insurance assessment as a result of the utilization of credits, and $513,000 in other non-interest expense, primarily related to a decrease in Directors' equity award expense. Non-interest expense included equity award expense of $2.9 million for the nine months ended September 30, 2019, as compared to $4.5 million for the nine months ended September 30, 2018. The lower expense in the current period is primarily attributable to equity awards that were fully vested on June 11, 2019.

On September 16, 2019, the Company announced its intention to combine three branch offices (two located in Brooklyn, New York, and one in Milltown, New Jersey) into existing nearby Northfield Bank locations. The branch consolidations are expected to occur on December 31, 2019, and the Company expects to record a one-time charge in occupancy costs of approximately $1.2 million in the fourth quarter of 2019, attributable to accelerated lease rental expense and accelerated leasehold amortization expense.


2


The Company recorded income tax expense of $9.7 million for the nine months ended September 30, 2019, compared to $7.3 million for the nine months ended September 30, 2018. The effective tax rate for the nine months ended September 30, 2019, was 24.4% compared to 19.5% for the nine months ended September 30, 2018. The increase was primarily due to lower excess tax benefits related to the exercise or vesting of equity awards and changes in New Jersey tax laws, partially offset by $2.4 million of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the policies. There were no material excess tax benefits recorded for the nine months ended September 30, 2019. Excess tax benefits were $2.2 million for the nine months ended September 30, 2018. Excess tax benefits will fluctuate throughout the year based on the Company's stock price and timing of employee stock option exercises and vesting of other share-based awards. 

On May 15, 2019 the State of New Jersey issued a tax technical bulletin which gave guidance on which entities are to be included in a combined group. Real estate investment trusts and investment companies will be excluded from the combined group. They will continue to file separate company New Jersey tax returns. As a result of this guidance the Company recorded an additional $559,000 of state tax expense net of federal benefit for the nine months ended September 30, 2019. The $559,000 increase was comprised of $773,000 of current tax expense, partially offset by a write-up of deferred tax assets of $214,000.

Comparison of Operating Results for the Three Months Ended September 30, 2019 and 2018
 
Net income was $13.1 million and $9.1 million for the quarters ended September 30, 2019, and September 30, 2018, respectively. Significant variances from the comparable prior year quarter are as follows: an $896,000 increase in net interest income, a $2.6 million decrease in the provision for loan losses, a $2.1 million increase in non-interest income, a $231,000 decrease in non-interest expense, and a $1.8 million increase in income tax expense.
 
Net interest income for the quarter ended September 30, 2019, increased $896,000, or 3.2%, primarily due to a $425.9 million, or 10.6%, increase in our average interest-earning assets, partially offset by an 18 basis point decrease in our net interest margin to 2.57% from 2.75% for the quarter ended September 30, 2018. The increase in average interest-earning assets was primarily due to increases in average loans outstanding of $127.3 million, average mortgage-backed securities of $267.3 million, and average other securities of $47.3 million, partially offset by a $20.5 million decrease in average interest-earning deposits in financial institutions. The decrease in net interest margin was primarily due to the increased cost of our interest-bearing liabilities, which increased 32 basis points to 1.55% for the quarter ended September 30, 2019, from 1.23% for the quarter ended September 30, 2018, while yields earned on interest-earning assets increased 10 basis points to 3.82% for the quarter ended September 30, 2019, from 3.72% for the quarter ended September 30, 2018. The increase in yields earned on interest-earning assets was driven by higher yields on loans and securities. Net interest income for the quarter ended September 30, 2019, included loan prepayment income of $596,000 as compared to $367,000 for the quarter ended September 30, 2018. Also included in net interest income in the current quarter is $314,000 of interest income recorded from the pay-off of a non-accrual loan.

The provision for loan losses decreased by $2.6 million to a negative provision of $1.3 million for the quarter ended September 30, 2019, from a provision of $1.3 million for the quarter ended September 30, 2018. The negative provision was primarily related to a $1.8 million recovery on a loan previously charged off, partially offset by a $514,000 charge-off on an impaired commercial real estate loan, and loan growth. Net recoveries were $1.5 million for the quarter ended September 30, 2019, compared to net charge-offs of $499,000 for the quarter ended September 30, 2018.

Non-interest income increased $2.1 million, or 79.5%, to $4.7 million for the quarter ended September 30, 2019, from $2.6 million for the quarter ended September 30, 2018, primarily due to an increase of $2.3 million in income on bank owned life insurance, attributable to insurance proceeds in excess of the related cash surrender values of the policies, and a decrease of $268,000 in gains on securities transactions, net (which include gains on available-for-sale debt securities and gains on trading securities). For the quarter ended September 30, 2019, gains on securities transactions, net, included gains of $28,000 related to the Company’s trading portfolio, compared to gains of $412,000 in the comparative prior year quarter. As previously noted, the trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the Company's deferred compensation plan, and gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values.
 
Non-interest expense decreased by $231,000, or 1.4%, to $16.9 million for the quarter ended September 30, 2019, from $17.1 million for the quarter ended September 30, 2018. The decrease was due primarily to a decrease of $410,000 in compensation and employee benefits, $384,000 of which is related to the Company's deferred compensation plan, which is described above and has no effect on net income, lower equity award expense, and lower medical benefit costs, partially offset by higher salary expense. Additionally, there were decreases of $236,000 in federal insurance premiums due to a reduction in our deposit insurance assessment as a result of the utilization of credits, partially offset by an increase in our premium base, and $296,000 in other non-interest expense, primarily related to lower Directors' equity award expense. Partially offsetting the decreases were increases of $364,000 in data processing costs and $185,000 in advertising expense. Non-interest expense included equity award expense of $425,000

3


and $1.4 million for the quarters ended September 30, 2019 and September 30, 2018, respectively. The lower expense in the current quarter is primarily attributable to equity awards that were fully vested on June 11, 2019.

The Company recorded income tax expense of $4.8 million for the quarter ended September 30, 2019, compared to $3.1 million for the quarter ended September 30, 2018. The effective tax rate for the quarter ended September 30, 2019, was 26.9% compared to 25.3% for the quarter ended September 30, 2018, the higher rate due in part to changes in New Jersey tax laws discussed above, partially offset by $2.4 million of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the policies.

Comparison of Operating Results for the Three Months Ended September 30, 2019, and June 30, 2019
 
Net income was $13.1 million and $8.2 million for the quarters ended September 30, 2019, and June 30, 2019, respectively. Significant variances from the prior quarter are as follows: a $1.7 million increase in net interest income, a $1.8 million decrease in the provision for loan losses, a $2.2 million increase in non-interest income, a $1.9 million decrease in non-interest expense, and a $2.6 million increase in income tax expense.
 
Net interest income for the quarter ended September 30, 2019, increased $1.7 million, or 6.1%, primarily due to a $173.3 million, or 4.1%, increase in our average interest-earning assets, and a two basis point expansion in our net interest margin to 2.57% from 2.55% for the quarter ended June 30, 2019. The increase in our average interest-earning assets was due primarily to increases in average loans outstanding of $69.3 million, average mortgage-backed securities of $118.1 million, and average Federal Home Loan Bank of New York stock of $5.0 million, partially offset by a decrease in average other securities of $19.2 million. Net interest income for the quarter ended September 30, 2019, included loan prepayment income of $596,000, as compared to $174,000 for the quarter ended June 30, 2019, and $314,000 of interest income recorded from the pay-off of a non-accrual loan. Yields earned on interest-earning assets increased five basis points to 3.82% for the quarter ended September 30, 2019, from 3.77% for the quarter ended June 30, 2019. The cost of our interest-bearing liabilities increased two basis points to 1.55% for the current quarter as compared to 1.53% for the prior quarter.

The provision for loan losses decreased by $1.8 million to a negative provision of $1.3 million for the quarter ended September 30, 2019, from a provision of $491,000 for the quarter ended June 30, 2019. The negative provision was primarily related to a $1.8 million recovery on a loan previously charged off, partially offset by a $514,000 charge-off on an impaired commercial real estate loan. Net recoveries were $1.5 million for the quarter ended September 30, 2019, compared to net charge-offs of $145,000 for the quarter ended June 30, 2019.

Non-interest income increased $2.2 million to $4.7 million for the quarter ended September 30, 2019, from $2.6 million for the quarter ended June 30, 2019. This increase was primarily due to a $2.4 million increase in income on bank owned life insurance, attributable to insurance proceeds in excess of the related cash surrender values of the policies, partially offset by a decrease of $251,000 in gains on securities transactions, net (which include gains on available-for-sale debt securities and gains on trading securities). For the quarter ended September 30, 2019, gains on securities transactions, net, included gains of $28,000 related to the Company’s trading portfolio, compared to gains of $343,000 in the quarter ended June 30, 2019.

Non-interest expense decreased $1.9 million, or 10.0%, to $16.9 million for the quarter ended September 30, 2019, from $18.8 million for the quarter ended June 30, 2019, primarily due to a decrease of $804,000 in employee compensation and benefits, $315,000 of which is related to the Company's deferred compensation plan (previously discussed) which has no effect on net income, lower equity award expense, and lower medical benefit costs, partially offset by higher salary expense. Additionally, there were decreases of $585,000 in advertising expense, due to the timing of our advertising programs, $250,000 in federal insurance premiums, due to a reduction in our deposit insurance assessment as a result of the utilization of credits, partially offset by increases in premium base, and $428,000 in other non-interest expense, primarily lower Directors' equity award expense. Included in non-interest expense for the quarters ended September 30, 2019, and June 30, 2019, is total equity award expense of $425,000 and $1.1million, respectively, the lower expense in the current quarter being primarily attributable to equity awards that were fully vested on June 11, 2019.

The Company recorded income tax expense of $4.8 million for the quarter ended September 30, 2019, compared to $2.3 million for the quarter ended June 30, 2019. The effective tax rate for the quarter ended September 30, 2019 was 26.9% compared to 21.7% for the quarter ended June 30, 2019, the increase being primarily due to tax deficiencies related to the exercise or vesting of equity awards recorded as income tax expense in the current quarter, as compared to excess tax benefits recorded in the prior quarter, partially offset by $2.4 million of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the policies.


4


Financial Condition
Total assets increased $399.9 million, or 9.1%, to $4.81 billion at September 30, 2019, from $4.41 billion at December 31, 2018. The increase was primarily due to increases in available-for sale debt securities of $251.5 million, or 31.1%, loans held-for-investment, net, of $110.0 million, or 3.4%, Federal Home Loan Bank of New York stock of $9.6 million, or 42.6%, and the recording of our operating leased assets of $41.2 million from the adoption of a new lease accounting standard, Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842) on January 1, 2019. The new lease standard requires us to recognize on the balance sheet right-of-use assets, which approximate the present value of our remaining lease payments. Partially offsetting these increases was a decrease in cash and cash equivalents of $8.1 million, or 10.4%, and a decrease in other assets of $6.8 million, or 21.5%.

As of September 30, 2019, we estimate that our non-owner occupied commercial real estate concentration (as defined by regulatory guidance issued in 2006) to total risk-based capital was approximately 441%. Management believes that Northfield Bank (the Bank) has implemented appropriate risk management practices including risk assessments, board approved underwriting policies and related procedures which include monitoring bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage our commercial real estate concentration risk, the Bank’s regulators could require us to implement additional policies and procedures or could require us to maintain higher levels of regulatory capital, which might adversely affect our loan originations, ability to pay dividends, and profitability.

Cash and cash equivalents decreased by $8.1 million, or 10.4%, to $69.7 million at September 30, 2019, from $77.8 million at December 31, 2018. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

Loans held-for-investment, net, increased $110.0 million to $3.36 billion at September 30, 2019, from $3.25 billion at December 31, 2018, primarily due to an increase in originated loans held-for-investment of $180.8 million, partially offset by decreases in acquired loans of $68.1 million and purchased credit-impaired (“PCI”) loans of $2.7 million. Originated loans held-for-investment, net, totaled $2.86 billion at September 30, 2019, as compared to $2.68 billion at December 31, 2018. The increase was primarily due to an increase in multifamily real estate loans of $167.8 million, or 8.7%, to $2.10 billion at September 30, 2019, from $1.93 billion at December 31, 2018.

On June 12, 2019, New York City announced revised rent laws that included: repealing provisions that remove units from rent stabilization when rent crosses a high threshold or when a unit becomes vacant; or if the tenant’s income is $200,000 or higher in the preceding two years. The updated laws also eliminate a “vacancy bonus” provision which allows property owners to raise rents as much as 20% each time a unit becomes vacant. At September 30, 2019, the Company has approximately $398.0 million in multifamily loans in New York City with tenants that have some form of rent stabilization or rent control. The weighted average loan to value (“LTV”) was 46.4% based on the current balance and the collateral value at date of origination on this portfolio. The highest LTV in this portfolio is 73.0%. All of the loans are performing as agreed. Management will continue to evaluate the effect of rent regulations on the collateral values.

The following tables detail our multifamily real estate originations for the nine months ended September 30, 2019 and 2018 (dollars in thousands): 
For the Nine Months Ended September 30, 2019
Multifamily Originations
 
Weighted Average Interest Rate
 
Weighted Average Loan-to-Value Ratio
 
Weighted Average Months to Next Rate Change or Maturity for Fixed Rate Loans
 
(F)ixed or (V)ariable
 
Amortization Term
$
296,236

 
4.16%
 
56%
 
92
 
V
 
10 to 30 Years
36,178

 
4.36%
 
55%
 
241
 
F
 
10 to 30 Years
$
332,414

 
4.18%
 
56%
 
 
 
 
 
 


5


For the Nine Months Ended September 30, 2018
Multifamily Originations
 
Weighted Average Interest Rate
 
Weighted Average Loan-to-Value Ratio
 
Weighted Average Months to Next Rate Change or Maturity for Fixed Rate Loans
 
(F)ixed or (V)ariable
 
Amortization Term
$
256,442

 
3.88%
 
64%
 
78
 
V
 
25 to 30 Years
12,365

 
4.17%
 
39%
 
181
 
F
 
15 Years
$
268,807

 
3.89%
 
63%
 
 
 
 
 
 
Acquired loans decreased by $68.1 million to $478.0 million at September 30, 2019, from $546.2 million at December 31, 2018, primarily due to paydowns of one-to-four family residential and multifamily loans with weighted average interest rates (net of the servicing fee retained by the originating bank) of 3.57% and 3.08%, respectively, partially offset by purchases of one-to-four family residential loan pools totaling $44.2 million.

The following table provides the details of the loan pools purchased during the nine months ended September 30, 2019 (dollars in thousands):
Purchase Amount
 
Loan Type
 
Weighted Average Interest Rate(1)
 
Weighted Average Loan-to-Value Ratio
 
Weighted Average Months to Next Rate Change or Maturity for Fixed Rate Loans
 
(F)ixed or (V)ariable
 
Original Amortization Term
$
4,230

 
Residential
 
4.19%
 
70.5%
 
324
 
F
 
15 - 30 Years
17,253

 
Residential
 
3.69%
 
63.0%
 
78
 
V
 
30 Years
19,448

 
Residential
 
4.19%
 
71.3%
 
333
 
F
 
30 Years
3,262

 
Residential
 
3.93%
 
65.5%
 
346
 
F
 
30 Years
$
44,193

 
 
 
3.98%
 

 
 
 
 
 
 
(1) Net of servicing fee retained by the originating bank
The geographic locations of the properties collateralizing the loans purchased in the table above are as follows: 83% in Massachusetts, 13% in New York, and 4% in New Jersey.

PCI loans totaled $17.4 million at September 30, 2019, as compared to $20.1 million at December 31, 2018. The majority of the PCI loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $1.1 million and $3.1 million attributable to PCI loans for the three and nine months ended September 30, 2019, respectively, as compared to $1.0 million and $3.1 million for the three and nine months ended September 30, 2018, respectively.
 
The Company’s available-for-sale debt securities portfolio increased by $251.5 million, or 31.1%, to $1.06 billion at September 30, 2019, from $808.0 million at December 31, 2018. The increase was primarily attributable to purchases of mortgage-backed and corporate securities, partially offset by paydowns and sales. At September 30, 2019, $874.6 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $184.7 million in corporate bonds, the majority of which were considered investment grade at September 30, 2019, and $222,000 in municipal bonds.

Other assets decreased $6.8 million, or 21.5%, to $24.8 million at September 30, 2019, from $31.6 million at December 31, 2018. The decrease was primarily attributable to a decrease in net deferred tax assets associated with an increase in net unrealized gains on our securities available-for-sale portfolio.
  
Total liabilities increased $376.4 million, or 10.1%, to $4.12 billion at September 30, 2019, from $3.74 billion at December 31, 2018. The increase was primarily attributable to an increase in deposits of $50.8 million, securities sold under agreements to repurchase of $75.0 million, other borrowings of $207.3 million, and lease liabilities of $45.2 million, attributable to capitalization of our operating leases as a result of the adoption of ASU No. 2016-02, effective January 1, 2019.
 
Deposits increased $50.8 million, or 1.5%, to $3.34 billion at September 30, 2019, as compared to $3.29 billion at December 31, 2018. The increase was attributable to increases of $88.2 million in transaction accounts and $138.9 million in savings accounts, partially offset by decreases of $71.0 million in money market accounts, and $105.1 million in certificates of deposit. Deposit account balances are summarized as follows (dollars in thousands):

6


 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
Transaction:
 
 
 
 
 
Non-interest bearing checking
$
399,237

 
$
386,784

 
$
395,375

Negotiable orders of withdrawal
542,315

 
486,529

 
458,012

Total transaction
941,552

 
873,313

 
853,387

Savings and Money market:
 
 
 
 
 
Savings
733,086

 
720,130

 
594,290

Money market
670,904

 
702,405

 
741,939

Total savings
1,403,990

 
1,422,535

 
1,336,229

Certificates of deposit:
 
 
 
 
 
Brokered deposits
253,651

 
237,908

 
275,398

$250,000 and under
622,785

 
647,958

 
696,957

Over $250,000
115,331

 
118,477

 
124,541

Total certificates of deposit
991,767

 
1,004,343

 
1,096,896

Total deposits
$
3,337,309

 
$
3,300,191

 
$
3,286,512


Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
 
 
 
 
 
 
Business customers
$
517,670

 
$
506,727

 
$
468,166

Municipal customers
$
363,574

 
$
322,369

 
$
337,053


Borrowings and securities sold under agreements to repurchase increased to $691.2 million at September 30, 2019, from $408.9 million at December 31, 2018. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent as part of leverage strategies. Management increased borrowings because it was more cost effective than the incremental cost of deposits.

The following is a table of term borrowing maturities (excluding capitalized leases and overnight borrowings) and the weighted average rate by year at September 30, 2019 (dollars in thousands):
Year
 
Amount
 
Weighted Average Rate
2019
 
$180,000
 
2.15%
2020
 
90,000
 
1.65%
2021
 
145,000
 
1.94%
2022
 
120,000
 
2.29%
2023
 
87,500
 
2.89%
Thereafter
 
62,500
 
2.57%
 
 
$685,000
 
2.20%
 
Total stockholders’ equity increased by $23.5 million to $689.9 million at September 30, 2019, from $666.4 million at December 31, 2018. The increase was primarily attributable to net income of $30.1 million for the nine months ended September 30, 2019, a $14.3 million increase in accumulated other comprehensive income associated with unrealized gains on our debt securities available-for-sale portfolio, and a $9.8 million increase in ESOP and equity award activity. The increase was partially offset by $15.1 million in dividend payments and $15.6 million in stock repurchases.


7


Asset Quality
 
The following table details total originated and acquired (excluding PCI) non-accrual loans, non-performing loans, non-performing assets, troubled debt restructurings on which interest is accruing, and accruing loans 30 to 89 days delinquent at September 30, 2019, June 30, 2019, and December 31, 2018 (dollars in thousands):
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
Non-accrual loans:
 
 
 
 
 
Held-for-investment
 
 
 
 
 
Real estate loans:
 
 
 
 
 
Commercial
$
8,310

 
$
9,234

 
$
7,291

One-to-four family residential
895

 
1,026

 
1,129

Multifamily
444

 
447

 
566

Home equity and lines of credit
149

 
150

 
151

Commercial and industrial
—

 
—

 
25

Total non-accrual loans
9,798

 
10,857

 
9,162

Loans delinquent 90 days or more and still accruing:
 
 
 
 
 
Held-for-investment
 
 
 
 
 
Real estate loans:
 
 
 
 
 
Commercial
553

 
—

 
—

One-to-four family residential
6

 
6

 
33

Home equity and lines of credit
37

 
20

 
—

Total loans delinquent 90 days or more and still accruing
596

 
26

 
33

Total non-performing assets
$
10,394

 
$
10,883

 
$
9,195

Non-performing loans to total loans
0.31
%
 
0.33
%
 
0.28
%
Non-performing assets to total assets
0.22
%
 
0.22
%
 
0.21
%
Loans subject to restructuring agreements and still accruing
$
14,316

 
$
14,508

 
$
16,390

Accruing loans 30 to 89 days delinquent
$
5,348

 
$
4,291

 
$
8,562


Accruing Loans 30 to 89 Days Delinquent
 
Loans 30 to 89 days delinquent and on accrual status totaled $5.3 million, $4.3 million, and $8.6 million at September 30, 2019, June 30, 2019, and December 31, 2018, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at September 30, 2019 and December 31, 2018 (dollars in thousands):     
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
Held-for-investment
 
 
 
 
 
Real estate loans:
 
 
 
 
 
Commercial
$
2,475

 
$
2,237

 
$
2,377

One-to-four family residential
2,235

 
1,799

 
4,120

Multifamily
431

 
—

 
2,018

Home equity and lines of credit
112

 
—

 
—

Commercial and industrial loans
87

 
248

 
45

Other loans
8

 
7

 
2

Total delinquent accruing loans held-for-investment
$
5,348

 
$
4,291

 
$
8,562


PCI Loans (Held-for-Investment)

At September 30, 2019, 6.5% of PCI loans were past due 30 to 89 days, and 23.5% were past due 90 days or more, as compared to 10.0% and 23.3%, respectively, at December 31, 2018.  

About Northfield Bank

Northfield Bank, founded in 1887, operates 40 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

8


Forward-Looking Statements: This release may contain certain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology.  Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc.  Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong.  They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, competition among depository and other financial institutions, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments, our ability to successfully integrate acquired entities, if any, and adverse changes in the securities markets.  Consequently, no forward-looking statement can be guaranteed.  Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.
 
(Tables follow)


9


NORTHFIELD BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts) (unaudited)
 
 
At or For the Three Months Ended
 
At or For the Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
2019
 
2018
 
2019
 
2019
 
2018
Selected Financial Ratios:
 
 
 
 
 
 
 
 
 
Performance Ratios(1)
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (7) (8)
1.10%
 
0.84%
 
0.72%
 
0.87
%
 
0.97
%
Return on equity (ratio of net income to average equity) (7) (8)
7.59
 
5.51
 
4.84
 
5.92

 
6.22

Average equity to average total assets
14.44
 
15.32
 
14.86
 
14.75

 
15.57

Interest rate spread
2.27
 
2.49
 
2.24
 
2.28

 
2.60

Net interest margin
2.57
 
2.75
 
2.55
 
2.58

 
2.84

Efficiency ratio(2) (8)
50.28
 
55.95
 
63.08
 
58.37

 
56.51

Non-interest expense to average total assets 
1.41
 
1.59
 
1.64
 
1.59

 
1.65

Non-interest expense to average total interest-earning assets 
1.50
 
1.69
 
1.76
 
1.70

 
1.75

Average interest-earning assets to average interest-bearing liabilities
123.91
 
127.37
 
125.20
 
124.86

 
128.23

Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
Non-performing assets to total assets
0.22
 
0.23
 
0.23
 
0.22

 
0.23

Non-performing loans(3) to total loans(4)
0.31
 
0.31
 
0.33
 
0.31

 
0.31

Allowance for loan losses to non-performing loans held-for-investment
270.02
 
276.31
 
255.74
 
270.02

 
276.31

Allowance for loan losses to originated loans held-for-investment, net(5)
0.94
 
1.03
 
0.95
 
0.94

 
1.03

Allowance for loan losses to total loans held-for-investment, net(6)
0.84
 
0.86
 
0.83
 
0.84

 
0.86


(1)
Annualized when appropriate. 
(2)
The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3)
Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCI loans), and are included in total loans held-for-investment, net.
(4)
Includes originated loans held-for-investment, PCI loans, and acquired loans.
(5)
Excludes PCI loans and acquired loans held-for-investment, and related reserve balances.
(6)
Includes PCI and acquired loans held-for-investment.
(7) There were no material tax benefits in the three or nine months ended September 30, 2019. The three months ended June 30, 2019, includes excess tax benefits of $193,000 related to the exercise or vesting of equity awards. The nine months ended September 30, 2018 includes excess tax benefits of $2.2 million related to the exercise or vesting of equity awards. Excess tax benefits will fluctuate based on the Company's stock price and timing of employee stock option exercises and vesting of other share-based awards.
(8) The three and nine months ended September 30, 2019, includes tax-exempt income of $2.4 million from bank owned life insurance proceeds in excess of the cash surrender value of the policies.





10


NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts) (unaudited)
 
September 30, 2019
 
June 30, 2019
 
December 31, 2018
ASSETS:
 
 
 
 
 
Cash and due from banks
$
17,487

 
$
14,156

 
$
15,147

Interest-bearing deposits in other financial institutions
52,165

 
32,751

 
62,615

Total cash and cash equivalents
69,652

 
46,907

 
77,762

Trading securities
10,375

 
10,214

 
8,968

Debt securities available-for-sale, at estimated fair value
1,059,560

 
1,049,660

 
808,031

Debt securities held-to-maturity, at amortized cost
8,817

 
8,872

 
9,505

Equity securities
2,288

 
2,328

 
1,280

Originated loans held-for-investment, net
2,859,704

 
2,800,816

 
2,678,877

Loans acquired
478,009

 
519,885

 
546,150

Purchased credit-impaired (PCI) loans held-for-investment
17,435

 
18,077

 
20,143

Loans held-for-investment, net
3,355,148

 
3,338,778

 
3,245,170

Allowance for loan losses
(28,066
)
 
(27,832
)
 
(27,497
)
Net loans held-for-investment
3,327,082

 
3,310,946

 
3,217,673

Accrued interest receivable
13,818

 
14,116

 
12,959

Bank owned life insurance
154,204

 
155,939

 
154,135

Federal Home Loan Bank of New York stock, at cost
32,105

 
32,330

 
22,517

Operating lease right-of-use assets
41,228

 
42,377

 
—

Premises and equipment, net
25,967

 
25,700

 
25,605

Goodwill
38,411

 
38,411

 
38,411

Other assets
24,804

 
30,482

 
31,586

Total assets
$
4,808,311

 
$
4,768,282

 
$
4,408,432

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY:
 
 
 
 
 
LIABILITIES:
 

 
 

 
 

Deposits
$
3,337,309

 
$
3,300,191

 
$
3,286,512

Securities sold under agreements to repurchase
75,000

 
75,000

 
—

Federal Home Loan Bank advances and other borrowings
616,161

 
620,105

 
408,891

Lease liabilities
45,196

 
46,321

 
—

Advance payments by borrowers for taxes and insurance
18,751

 
20,817

 
18,007

Accrued expenses and other liabilities
25,954

 
24,755

 
28,583

Total liabilities
4,118,371

 
4,087,189

 
3,741,993

Total stockholders’ equity
689,940

 
681,093

 
666,439

Total liabilities and stockholders’ equity
$
4,808,311

 
$
4,768,282

 
$
4,408,432

 
 
 
 
 
 
Total shares outstanding
49,154,878

 
49,112,139

 
49,635,673

Tangible book value per share (1)
$
13.24

 
$
13.07

 
$
12.63

(1)
Tangible book value per share is calculated based on total stockholders' equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $833,000, $899,000, and $1.0 million at September 30, 2019, June 30, 2019, and December 31, 2018, respectively, and are included in other assets.




11


NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands, except share and per share amounts) (unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30
 
September 30,
 
2019
 
2018
 
2019
 
2019
 
2018
Interest income:
 
 
 
 
 
 
 
 
 
Loans
$
35,285

 
$
32,443

 
$
33,308

 
$
101,183

 
$
94,686

Mortgage-backed securities
5,409

 
3,475

 
4,599

 
14,082

 
9,269

Other securities
1,511

 
1,104

 
1,699

 
5,075

 
2,427

Federal Home Loan Bank of New York dividends
396

 
428

 
340

 
1,138

 
1,240

Deposits in other financial institutions
246

 
277

 
247

 
1,028

 
722

Total interest income
42,847

 
37,727

 
40,193

 
122,506

 
108,344

Interest expense:
 
 
 

 
 

 
 

 
 

Deposits
10,516

 
7,593

 
10,549

 
31,312

 
18,854

Borrowings
3,511

 
2,210

 
2,485

 
7,885

 
6,252

Total interest expense
14,027

 
9,803

 
13,034

 
39,197

 
25,106

Net interest income
28,820

 
27,924

 
27,159

 
83,309

 
83,238

(Recovery)/provision for loan losses
(1,300
)
 
1,304

 
491

 
(750
)
 
2,008

Net interest income after provision for loan losses
30,120

 
26,620

 
26,668

 
84,059

 
81,230

Non-interest income:
 
 
 

 
 

 
 

 
 

Fees and service charges for customer services
1,286

 
1,241

 
1,207

 
3,633

 
3,602

Income on bank owned life insurance
3,268

 
919

 
907

 
5,071

 
2,787

Gains on available-for-sale debt securities, net
123

 
7

 
59

 
337

 
178

Gains on trading securities, net
28

 
412

 
343

 
1,457

 
714

Other
28

 
58

 
50

 
115

 
205

Total non-interest income
4,733

 
2,637

 
2,566

 
10,613

 
7,486

Non-interest expense:
 
 
 

 
 

 
 

 
 

Compensation and employee benefits
9,033

 
9,443

 
9,837

 
29,890

 
27,681

Occupancy
3,084

 
3,015

 
3,120

 
9,486

 
9,061

Furniture and equipment
280

 
239

 
265

 
804

 
747

Data processing
1,517

 
1,153

 
1,437

 
4,217

 
3,527

Professional fees
938

 
886

 
811

 
2,496

 
2,558

Advertising
746

 
561

 
1,331

 
2,841

 
1,815

FDIC insurance
5

 
241

 
255

 
537

 
812

Other
1,266

 
1,562

 
1,694

 
4,552

 
5,065

Total non-interest expense
16,869

 
17,100

 
18,750

 
54,823

 
51,266

Income before income tax expense
17,984

 
12,157

 
10,484

 
39,849

 
37,450

Income tax expense
4,845

 
3,081

 
2,280

 
9,735

 
7,318

Net income
$
13,139

 
$
9,076

 
$
8,204

 
$
30,114

 
$
30,132

Net income per common share:
 
 
 
 
 
 
 
 
 
Basic
$
0.28

 
$
0.19

 
$
0.18

 
$
0.64

 
$
0.65

Diluted
$
0.28

 
$
0.19

 
$
0.17

 
$
0.64

 
$
0.64

Basic average shares outstanding
46,631,008

 
46,604,051

 
46,855,647

 
46,808,188

 
46,192,273

Diluted average shares outstanding
46,979,214

 
47,294,645

 
47,271,690

 
47,178,690

 
47,137,407



12


NORTHFIELD BANCORP, INC.
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands) (unaudited)
 
 
For the Three Months Ended
 
September 30, 2019
 
June 30, 2019
 
September 30, 2018
 
Average Outstanding Balance
 
Interest
 
Average Yield/ Rate (1)
 
Average Outstanding Balance
 
Interest
 
Average Yield/ Rate (1)
 
Average Outstanding Balance
 
Interest
 
Average Yield/ Rate (1)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans (2)
$
3,329,893

 
$
35,285

 
4.20
%
 
$
3,260,550

 
$
33,308

 
4.10
%
 
$
3,202,616

 
$
32,443

 
4.02
%
Mortgage-backed securities (3)
833,071

 
5,409

 
2.58

 
714,930

 
4,599

 
2.58

 
565,783

 
3,475

 
2.44

Other securities (3)
208,196

 
1,511

 
2.88

 
227,379

 
1,699

 
3.00

 
160,877

 
1,104

 
2.72

Federal Home Loan Bank of New York stock
29,974

 
396

 
5.24

 
24,966

 
340

 
5.46

 
25,499

 
428

 
6.66

Interest-earning deposits in financial institutions
48,841

 
246

 
2.00

 
48,885

 
247

 
2.03

 
69,327

 
277

 
1.59

Total interest-earning assets
4,449,975

 
42,847

 
3.82

 
4,276,710

 
40,193

 
3.77

 
4,024,102

 
37,727

 
3.72

Non-interest-earning assets
303,406

 
 
 
 
 
298,223

 
 
 
 
 
244,191

 
 
 
 
Total assets
$
4,753,381

 
 
 
 
 
$
4,574,933

 
 
 
 
 
$
4,268,293

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Savings, NOW, and money market accounts
$
1,940,764

 
$
5,281

 
1.08
%
 
$
1,918,810

 
$
5,377

 
1.12
%
 
$
1,620,562

 
$
2,691

 
0.66
%
Certificates of deposit
1,007,163

 
5,235

 
2.06

 
1,010,045

 
5,172

 
2.05

 
1,064,005

 
4,902

 
1.83

Total interest-bearing deposits
2,947,927

 
10,516

 
1.42

 
2,928,855

 
10,549

 
1.44

 
2,684,567

 
7,593

 
1.12

Borrowed funds
643,280

 
3,511

 
2.17

 
487,115

 
2,485

 
2.05

 
474,773

 
2,210

 
1.85

Total interest-bearing liabilities
3,591,207

 
14,027

 
1.55

 
3,415,970

 
13,034

 
1.53

 
3,159,340

 
9,803

 
1.23

Non-interest bearing deposits
382,563

 
 
 
 
 
385,820

 
 
 
 
 
404,570

 
 
 
 
Accrued expenses and other liabilities
93,143

 
 
 
 
 
93,176

 
 
 
 
 
50,527

 
 
 
 
Total liabilities
4,066,913

 
 
 
 
 
3,894,966

 
 
 
 
 
3,614,437

 
 
 
 
Stockholders' equity
686,468

 
 
 
 
 
679,967

 
 
 
 
 
653,856

 
 
 
 
Total liabilities and stockholders' equity
$
4,753,381

 
 
 
 
 
$
4,574,933

 
 
 
 
 
$
4,268,293

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
$
28,820

 
 
 
 
 
$
27,159

 
 
 
 
 
$
27,924

 
 
Net interest rate spread (4)
 
 
 
 
2.27
%
 
 
 
 
 
2.24
%
 
 
 
 
 
2.49
%
Net interest-earning assets (5)
$
858,768

 
 
 
 
 
$
860,740

 
 
 
 
 
$
864,762

 
 
 
 
Net interest margin (6)
 
 
 
 
2.57
%
 
 
 
 
 
2.55
%
 
 
 
 
 
2.75
%
Average interest-earning assets to interest-bearing liabilities
 
 
 
 
123.91
%
 
 
 
 
 
125.20
%
 
 
 
 
 
127.37
%

(1)
Average yields and rates are annualized.
(2)
Includes non-accruing loans.
(3)
Securities available-for-sale and other securities are reported at amortized cost.
(4)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)
Net interest margin represents net interest income divided by average total interest-earning assets.


13


 
For the Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
Average Outstanding Balance
 
Interest
 
Average Yield/ Rate (1)
 
Average Outstanding Balance
 
Interest
 
Average Yield/ Rate (1)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Loans (2)
$
3,269,983

 
$
101,183

 
4.14
%
 
$
3,169,780

 
$
94,686

 
3.99
%
Mortgage-backed securities (3)
725,879

 
14,082

 
2.59

 
524,904

 
9,269

 
2.36

Other securities (3)
227,318

 
5,075

 
2.98

 
126,578

 
2,427

 
2.56

Federal Home Loan Bank of New York stock
25,587

 
1,138

 
5.95

 
25,271

 
1,240

 
6.56

Interest-earning deposits in financial institutions
63,261

 
1,028

 
2.17

 
69,528

 
722

 
1.39

Total interest-earning assets
4,312,028

 
122,506

 
3.80

 
3,916,061

 
108,344

 
3.70

Non-interest-earning assets
296,043

 
 
 
 
 
241,828

 
 
 
 
Total assets
$
4,608,071

 
 
 
 
 
$
4,157,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Savings, NOW, and money market accounts
$
1,906,047

 
$
15,452

 
1.08
%
 
$
1,652,683

 
$
7,146

 
0.58
%
Certificates of deposit
1,039,344

 
15,860

 
2.04

 
929,654

 
11,708

 
1.68

Total interest-bearing deposits
2,945,391

 
31,312

 
1.42

 
2,582,337

 
18,854

 
0.98

Borrowed funds
508,176

 
7,885

 
2.07

 
471,567

 
6,252

 
1.77

Total interest-bearing liabilities
3,453,567

 
39,197

 
1.52

 
3,053,904

 
25,106

 
1.10

Non-interest bearing deposits
382,686

 
 
 
 
 
408,116

 
 
 
 
Accrued expenses and other liabilities
92,122

 
 
 
 
 
48,596

 
 
 
 
Total liabilities
3,928,375

 
 
 
 
 
3,510,616

 
 
 
 
Stockholders' equity
679,696

 
 
 
 
 
647,273

 
 
 
 
Total liabilities and stockholders' equity
$
4,608,071

 
 
 
 
 
$
4,157,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
 
 
$
83,309

 
 
 
 
 
$
83,238

 
 
Net interest rate spread (4)
 
 
 
 
2.28
%
 
 
 
 
 
2.60
%
Net interest-earning assets (5)
$
858,461

 
 
 
 
 
$
862,157

 
 
 
 
Net interest margin (6)
 
 
 
 
2.58
%
 
 
 
 
 
2.84
%
Average interest-earning assets to interest-bearing liabilities
 
 
 
 
124.86
%
 
 
 
 
 
128.23
%

(1)
Average yields and rates are annualized.
(2)
Includes non-accruing loans.
(3)
Securities available-for-sale and other securities are reported at amortized cost.
(4)
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)
Net interest margin represents net interest income divided by average total interest-earning assets.


14