Northfield Bancorp, Inc. Announces Third Quarter 2020 Results Nasdaq:NFBK

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

• DILUTED EARNINGS PER SHARE OF $0.17 FOR THE THIRD QUARTER OF 2020, COMPARED TO $0.23 FOR THE SECOND QUARTER OF 2020, AND $0.28 FOR THE THIRD QUARTER OF 2019
  • Current quarter results reflect a net decrease of $0.06 per diluted share related to $3.9 million ($2.9 million after-tax) in merger-related expenses, primarily change in control payments, legal and advisory fees, and technology contract termination charges associated with the acquisition of VSB BANCORP, INC.  (“Victory”) as compared to:
    • A net decrease of $0.01 per diluted share in the second quarter of 2020 related to:
      • $1.8 million ($1.3 million after-tax) in incremental loan loss provisions related to an increase in estimated loss factors related to the COVID-19 pandemic; and
      • $205,000 in merger-related expenses, partially offset by:
      •  $665,000 ($479,000 after tax) in gains on loans sold; and a
      • $618,000 ($445,000 after-tax) reduction in the allowance for loan losses related to the sale of loans; and
    • A net increase of $0.08 per diluted share, in the third quarter of 2019, related to $2.4 million of tax-exempt income from bank owned life insurance proceeds in excess of the cash surrender value of the policies, and $1.8 million ($1.6 million after-tax) of income related to a recovery on a loan previously charged off
• ACQUISITION OF VICTORY COMPLETED ON JULY 1, 2020, WHICH ADDED TOTAL ASSETS OF $403.0 MILLION, LOANS OF $180.4 MILLION, AND DEPOSITS OF $354.6 MILLION
• NET INTEREST INCOME INCREASED $2.4 MILLION, OR 7.9%, OVER THE SECOND QUARTER OF 2020, AND $3.8 MILLION, OR 13.1%, COMPARED TO THE PRIOR YEAR QUARTER
• REDUCED LOAN DEFERRALS FROM $345.9 MILLION, OR 9.7%, OF TOTAL LOANS AT JUNE 30, 2020, TO $105.6 MILLION, OR 2.8%, AT SEPTEMBER 30, 2020
• THROUGH SEPTEMBER 30, 2020, ORIGINATED OVER 1,000 PAYCHECK PROTECTION PROGRAM (“PPP”) LOANS TOTALING $118.5 MILLION (AND ACQUIRED 395 PPP LOANS FROM VICTORY TOTALING $30.0 MILLION).
  • We received loan processing fees of approximately $5.3 million ($1.1 million related to Victory) of which $818,000 has been recognized in earnings through September 30, 2020. The remaining fees will be amortized over the remaining lives of the loans.
• NON-PERFORMING LOANS TO TOTAL LOANS WAS 0.30% AT SEPTEMBER 30, 2020, COMPARED TO 0.29% AT DECEMBER 31, 2019
• CASH DIVIDEND DECLARED OF $0.11 PER SHARE OF COMMON STOCK, PAYABLE NOVEMBER 25, 2020, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 11, 2020
• STOCK REPURCHASE PROGRAM REINSTATED, WITH APPROXIMATELY 1.45 MILLION SHARES AVAILABLE FOR REPURCHASE

WOODBRIDGE, N.J., Oct. 28, 2020 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK), the holding company for Northfield Bank, reported diluted earnings per common share of $0.17 and $0.50 for the quarter and nine months ended September 30, 2020, respectively, as compared to $0.28 and $0.64 per diluted share for the quarter and nine months ended September 30, 2019, respectively. Earnings for the three and nine months ended September 30, 2020, included merger-related expenses of $2.9 million and $3.3 million, net of tax, respectively, primarily change in control payments, legal and advisory fees, and technology contract termination charges. Additionally, earnings for the nine months ended September 30, 2020, included incremental loan loss provisions of $5.8 million, net of tax,  primarily related to increases in estimated loss factors for unemployment, downgrades in loan ratings and increased risks related to loans on forbearance, associated with the Coronavirus Disease 2019 (“COVID-19”) pandemic, a reduction in loan loss provisions of $445,000, net of tax, related to the sale of loans in the quarter ended June 30, 2020, and a gain on sale of loans of $479,000, net of tax. Earnings for the quarter and nine months ended September 30, 2019, included $2.4 million 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, net of tax, of…