Northfield Bancorp, Inc. Announces Second Quarter 2021 Results

Thursday, 29. July 2021 01:03

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

  • DILUTED EARNINGS PER SHARE INCREASED OVER 5% TO $0.40 AS COMPARED TO $0.38 FOR THE TRAILING QUARTER, AND OVER 73% COMPARED TO $0.23 FOR THE SECOND QUARTER OF 2020.
  • NET INTEREST INCOME DECREASED $1.5 MILLION, OR 3.7%, OVER THE TRAILING QUARTER, AND INCREASED $8.5 MILLION, OR 28.0%, COMPARED TO THE SECOND QUARTER OF 2020. CURRENT QUARTER INCLUDES $443,000 IN ACCRETED INTEREST INCOME ON PURCHASED CREDIT DETERIORATED LOANS AS COMPARED TO $2.4 MILLION FOR THE TRAILING QUARTER.
  • TOTAL LOANS, EXCLUDING PAYCHECK PROTECTION PROGRAM ("PPP") LOANS, DECREASED $80.6 MILLION, OR 2.1%. CURRENT QUARTER INCLUDES LOAN SALES OF APPROXIMATELY $126 MILLION, RESULTING IN A $1.4 MILLION GAIN.
  • DEPOSITS, EXCLUDING BROKERED, INCREASED $50.8 MILLION, OR 1.3%, SINCE MARCH 31, 2021. COST OF DEPOSITS DECREASED OVER 11% FOR THE QUARTER TO 16 BASIS POINTS, AS COMPARED TO 18 BASIS POINTS FOR THE TRAILING QUARTER.
  • NON-PERFORMING LOANS TO TOTAL LOANS DECREASED TO 0.23% AT JUNE 30, 2021, AS COMPARED TO 0.26% AT MARCH 2021, AND 0.27% AT JUNE 30, 2020.
  • REPURCHASED 900,771 SHARES TOTALING APPROXIMATELY $14.7 MILLION.
  • CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE AUGUST 25, 2021, TO STOCKHOLDERS OF RECORD AS OF AUGUST 11, 2021.

WOODBRIDGE, N.J., July 28, 2021 (GLOBE NEWSWIRE) -- NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (or the “Company”), the holding company for Northfield Bank, reported diluted earnings per common share of $0.40 and $0.78 for the three and six months ended June 30, 2021, respectively, as compared to $0.23 and $0.33 per diluted share for the three and six months ended June 30, 2020, respectively. Earnings for the three and six months ended June 30, 2021, included a negative provision for loan losses of $3.7 million and $6.1 million, respectively, reflecting continued improvement in the economic forecast as well as an improvement in asset quality and a decline in loan balances, as compared to a provision for loan losses of $1.9 million and $10.1 million for the three and six months ended June 30, 2020, respectively, under the incurred loss methodology. The provision for loan losses for the three and six months ended June 30, 2020, included incremental loss provisions of $1.8 million and $8.0 million, respectively, related to additional factors considered for economic uncertainties related to the Coronavirus 2019 (“COVID-19”) pandemic. Earnings for the three and six months ended June 30, 2021, included a gain on sale of loans of $1.4 million. Earnings for the six months ended June 30, 2021, also included approximately $1.9 million of accretable income related to the payoffs of purchased credit deteriorated (“PCD”) loans. Earnings for the three and six months ended June 30, 2020, included a gain on sale of loans of $665,000, and merger-related expenses of $205,000 and $384,000, respectively.

Commenting on the quarter, Steven M. Klein, the Company’s President and Chief Executive Officer noted, “Our strong financial results reflect the continued execution of our strategic initiatives focused on prudent and disciplined lending and deposit gathering, net interest margin optimization, and expense discipline.”

Mr. Klein further noted, “I’m pleased to report that we continue to deploy our substantial capital base, including through stock repurchases of $14.7 million for the second quarter, and the declaration of a quarterly cash dividend of $0.13 per common share, payable August 11, 2021, to stockholders of record on August 25, 2021.”

Results of Operations

Comparison of Operating Results for the Six Months Ended June 30, 2021 and 2020

Net income was $38.5 million and $15.3 million for the six months ended June 30, 2021 and June 30, 2020, respectively. Significant variances from the comparable prior year period are as follows: an $18.7 million increase in net interest income, a $16.2 million decrease in the provision for loan losses, a $3.2 million increase in non-interest income, a $5.9 million increase in non-interest expense, and a $9.1 million increase in income tax expense.

Net interest income for the six months ended June 30, 2021, increased $18.7 million, or 31.1%, to $78.9 million, from $60.2 million for the six months ended June 30, 2020, primarily due to a $504.2 million, or 10.6%, increase in the average balance of interest-earning assets and a 48 basis point increase in net interest margin to 3.03% from 2.55% for the six months ended June 30, 2020. The increase in the average balance of interest-earning assets was due to increases in the average balance of loans outstanding of $381.6 million, the average balance of mortgage-backed securities of $107.4 million and the average balance of interest-earning deposits in financial institutions of $38.2 million, partially offset by decreases in the average balance of other securities of $20.8 million and the average balance of Federal Home Loan Bank of New York (“FHLBNY”) stock of $2.2 million.

The increase in net interest margin was primarily due to the decrease in the cost of interest-bearing liabilities outpacing the decrease in yields on interest earning assets. Yields on interest-earning assets decreased 15 basis points to 3.40% for the six months ended June 30, 2021, from 3.55% for the six months ended June 30, 2020. The cost of interest-bearing liabilities decreased by 76 basis points to 0.48% for the six months ended June 30, 2021, from 1.24% for the six months ended June 30, 2020, primarily driven by lower cost of deposits due to the low interest rate environment and a change in the composition of the deposit portfolio as the average balance of transaction accounts increased and the average balance of certificates of deposit decreased. Net interest income for the six months ended June 30, 2021, included loan prepayment income of $2.2 million as compared to $992,000 for the six months ended June 30, 2020. The Company accreted interest income related to PCD loans of $2.9 million for the six months ended June 30, 2021, as compared to $1.5 million for the six months ended June 30, 2020. The increase in accretable interest income was primarily related to payoffs of PCD loans in the first quarter of 2021. Also contributing to the increase in net interest income for the six months ended June 30, 2021 were fees related to loans originated under the PPP of approximately $2.8 million.

The provision for loan losses decreased by $16.2 million to a negative provision of $6.1 million for the six months ended June 30, 2021, compared to a provision of $10.1 million for the six months ended June 30, 2020, driven by continued improvement in the economic forecast and an improvement in asset quality as well as a decline in loan balances. The higher provision for loan losses in the first half of 2020 was primarily due to increases in qualitative factors used in determining the adequacy of the allowance for loan losses related to unemployment, loan risk rating changes and increased risks related to loans on forbearance, resulting from economic uncertainty attributable to the COVID-19 pandemic, under the incurred loss methodology. Net charge-offs were $2.4 million for the six months ended June 30, 2021, primarily related to PCD loans, as compared to $292,000 for the six months ended June 30, 2020.

On January 1, 2021, the Company adopted ASU 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”). CECL requires the measurement of all expected credit losses over the life of financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of CECL, the Company recognized a cumulative effect adjustment that reduced stockholders’ equity by $3.1 million, net of tax. At adoption, the Company increased its allowance for credit losses by $11.1 million, comprised of $10.3 million and $737,000, respectively, for loans and unfunded commitments, including $6.8 million related to PCD loans. For PCD loans, the allowance for credit losses recorded is recognized through a gross-up that increases the amortized cost basis of loans with a corresponding increase to the allowance for credit losses, and therefore results in no impact to shareholders' equity.

Non-interest income increased $3.2 million to $7.6 million for the six months ended June 30, 2021, from $4.3 million for the six months ended June 30, 2020, due primarily to: an increase of $738,000 in fees and service charges for customer services, as the prior year period reflected fees waived and fewer transactions related to lower consumer spending in the early part of the pandemic; an increase of $546,000 in gains on sales of available-for-sale debt securities, net; a $1.5 million increase in gains on trading securities, net; and a $736,000 increase in gains on sales of loans. The increase in gains on sales of loans resulted from the sales of approximately $126.3 million of multifamily loans for gains of $1.4 million in the second quarter of 2021 compared to sales of $47.5 million of multifamily loans for gains of $665,000 in the second quarter of 2020. The Company periodically considers the sale of loans to manage its overall risk profile, including consideration of interest rate risk, concentration risk and capital deployment opportunities. For the six months ended June 30, 2021, gains on trading securities were $1.2 million as compared to losses of $366,000 for the six months ended June 30, 2020. 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. Partially offsetting the increases, was a $315,000 decrease in other income primarily due to lower swap fee income for the six months ended June 30, 2021, compared to the comparable prior year period due to a lower volume of such transaction in 2021.

Non-interest expense increased $5.9 million, or 17.6%, to $39.4 million for the six months ended June 30, 2021, compared to $33.5 million for the six months ended June 30, 2020. This was due primarily to a $3.6 million increase in employee compensation and benefits, $1.5 million of which is attributable to the increase in the Company's deferred compensation plan expense, which as discussed above has no effect on net income, as well as increases in salary and medical benefit expenses associated with increased personnel from our acquisition of VSB Bancorp, Inc. (“Victory”) on July 1, 2020. Additionally, occupancy expense increased by $1.1 million, primarily related to additional branches from the Victory acquisition, renovation of existing branches and higher snow removal costs in the first quarter of 2021. Data processing fees increased by $358,000 related to the Victory acquisition and organic growth in loan and deposit accounts. FDIC insurance premiums increased by $505,000 due to small bank assessment credits being applied in the prior year. Other expense increased by $537,000, primarily due to an increase in the reserve for unfunded commitments. Partially offsetting the increases was a $416,000 decrease in professional fees, primarily due to lower merger-related costs.

The Company recorded income tax expense of $14.6 million for the six months ended June 30, 2021, compared to $5.5 million for the six months ended June 30, 2020. The effective tax rate for the six months ended June 30, 2021, was 27.5% compared to 26.5% for the six months ended June 30, 2020. The higher effective tax rate was primarily due to higher taxable income. Additionally, on April 19, 2021, the Governor of New York signed into law an increase in the tax rate from 6.5% to 7.25%.

Comparison of Operating Results for the Three Months Ended June 30, 2021 and 2020

Net income was $19.8 million and $10.8 million for the quarters ended June 30, 2021, and June 30, 2020, respectively. Significant variances from the comparable prior year quarter are as follows: an $8.5 million increase in net interest income, a $5.6 million decrease in the provision for loan losses, a $678,000 increase in non-interest income, a $2.0 million increase in non-interest expense, and a $3.7 million increase in income tax expense.

Net interest income for the quarter ended June 30, 2021, increased $8.5 million, or 28.0%, primarily due to a $438.9 million, or 9.2%, increase in average interest-earning assets, and a 43 basis point increase in net interest margin to 2.96% from 2.53% for the quarter ended June 30, 2020. The increase in the average balance of interest-earning assets was due to increases in the average balance of loans outstanding of $360.4 million, the average balance of mortgage-backed securities of $54.3 million, the average balance of other securities of $12.7 million and the average balance of interest-earning deposits in financial institutions of $13.4 million, partially offset by a decrease of $1.8 million in the average balance of FHLBNY stock.

The increase in net interest margin was primarily due to the decrease in the cost of interest-bearing liabilities outpacing the decrease in yields on interest earning assets. Yields on interest earning assets decreased by 12 basis points to 3.31% for the quarter ended June 30, 2021, from 3.43% for the quarter ended June 30, 2020. The cost of interest-bearing liabilities decreased by 65 basis points to 0.47% for the quarter ended June 30, 2021, from 1.12% for the quarter ended June 30, 2020, driven primarily by lower cost of deposits due to the low interest rate environment and a change in the composition of the deposit portfolio as the average balance of transaction accounts increased and the average balance of certificates of deposit decreased. Net interest income for the quarter ended June 30, 2021, included loan prepayment income of $1.3 million, as compared to $365,000 for the quarter ended June 30, 2020. The Company accreted interest income related to PCD loans of $443,000 for the three months ended June 30, 2021, as compared to $717,000 for three months ended June 30, 2020. Net interest income for the three months ended June 30, 2021 included PPP fee income of approximately $1.6 million.

The provision for loan losses decreased by $5.6 million to a negative provision of $3.7 million for the quarter ended June 30, 2021, from a provision of $1.9 million for the quarter ended June 30, 2020, driven by continued improvement in the economic forecast and an improvement in asset quality as well as a decline in loan balances. The higher provision for loan losses in the prior year quarter was primarily due to increases in the qualitative factors used in determining the adequacy of the allowance for loan losses related to unemployment and loan risk rating changes related to loan modification requests, and to a lesser extent delinquencies, resulting from economic uncertainty attributable to the COVID-19 pandemic, under the incurred loss methodology. Net charge-offs were $3,000 for the quarter ended June 30, 2021, compared to $202,000 for the quarter ended June 30, 2020.

Non-interest income increased by $678,000, or 16.0%, to $4.9 million for the quarter ended June 30, 2021, from $4.2 million for the quarter ended June 30, 2020, primarily due to an increase of $661,000 in fees and service charges for customers, as the prior year quarter reflected certain fees waived and lower consumer spending during the early part of the pandemic, an increase of $436,000 in gains on available-for-sale debt securities, net, and an increase of $736,000 in gains on sales of loans, resulting from the sales of approximately $126.3 million of multifamily loans for gains of $1.4 million in the second quarter of 2021 compared to sales of $47.5 million of multifamily loans for gains of $665,000 in the second quarter of 2020. The increases were partially offset by decreases of $819,000 in gains on trading securities, net, and $328,000 in other income, primarily lower swap fee income. For the quarter ended June 30, 2021, gains on trading securities, net, included gains of $807,000 related to the Company’s trading portfolio, compared to gains of $1.6 million in the comparative prior year quarter. 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 increased by $2.0 million, or 11.3%, to $19.9 million for the quarter ended June 30, 2021, from $17.9 million for the quarter ended June 30, 2020. The increase was due primarily to a $362,000 increase in compensation and employee benefits, attributable to higher salary and medical benefit expense associated with increased personnel from the Victory acquisition, partially offset by a decrease in the mark to market of deferred compensation, a $482,000 increase in occupancy expense, related to additional branches from the Victory acquisition, and renovations of existing branches, a $186,000 increase in data processing fees, a $341,000 increase in advertising expense, and a $635,000 increase in other expense, primarily attributable an increase in the reserve for unfunded commitments.

The Company recorded income tax expense of $7.6 million for the quarter ended June 30, 2021, compared to $3.9 million for the quarter ended June 30, 2020. The effective tax rate for the quarter ended June 30, 2021, was 27.8% compared to 26.5% for the quarter ended June 30, 2020. The higher effective tax rate was primarily due to higher taxable income. Additionally, on April 19, 2021, the Governor of New York signed into law an increase in the tax rate from 6.5% to 7.25%.

Comparison of Operating Results for the Three Months Ended June 30, 2021 and March 31, 2021

Net income was $19.8 million and $18.7 million for the quarters ended June 30, 2021, and March 31, 2021, respectively. Significant variances from the prior quarter are as follows: a $1.5 million decrease in net interest income, a $1.3 million decrease in the provision for loan losses, a $2.3 million increase in non-interest income, a $308,000 increase in non-interest expense, and a $693,000 increase in income tax expense.

Net interest income for the quarter ended June 30, 2021, decreased $1.5 million, or 3.7%, primarily due to a $18.2 million, or 0.3%, decrease in average interest-earning assets and a 14 basis point decrease in net interest margin to 2.96% from 3.10% for the quarter ended March 31, 2021. The decrease in the average balance of interest-earning assets was primarily due to a decrease in the average balance of mortgage-backed securities of $148.8 million, partially offset by increases in the average balance of loans outstanding of $74.3 million, the average balance of other securities of $40.0 million, and the average balance of interest-earning deposits in financial institutions of $17.3 million.

The decrease in net interest margin was primarily due to lower yields on interest-earning assets, which decreased by 17 basis points to 3.31% for the quarter ended June 30, 2021, from 3.48% for the quarter ended March 31, 2021. The cost of interest-bearing liabilities decreased by three basis points to 0.47% for the quarter ended June 30, 2021, from 0.50% for the quarter ended March 31, 2021. Net interest income for the quarter ended June 30, 2021, included loan prepayment income of $1.3 million as compared to $860,000 for the quarter ended March 31, 2021. The Company accreted interest income related to PCD loans of $443,000 for the quarter ended June 30, 2021, as compared to $2.4 million for the quarter ended March 31, 2021. In the prior quarter, the higher accretable income was related to payoffs of PCD loans. Net interest income for the quarters ended June 30, 2021, and March 31, 2021 included PPP fee income of approximately $1.6 million and $1.2 million, respectively.

The provision for loan losses decreased by $1.3 million to a negative provision of $3.7 million for the quarter ended June 30, 2021, from a negative provision of $2.4 million for the quarter ended March 31, 2021. The decrease was primarily due to continued improvement in the economic forecast and an improvement in asset quality as well as a decline in loan balances. Net charge-offs were $3,000 for the quarter ended June 30, 2021, as compared to net charge-offs of $2.4 million for the quarter ended March 31, 2021. Net charge-offs for the quarter ended March 31, 2021, were primarily related to PCD loans.

Non-interest income increased by $2.3 million, or 86.5%, to $4.9 million for the quarter ended June 30, 2021, from $2.6 million for the quarter ended March 31, 2021. The increase was primarily due to increases of $412,000 in gains on available-for-sale debt securities, net, $443,000 in gains on trading securities, net, and $1.4 million in gains on sales of loans. For the quarter ended June 30, 2021, gains on trading securities, net, included gains of $807,000 related to the Company’s trading portfolio, compared to gains of $364,000 for the quarter ended March 31, 2021.

Non-interest expense increased by $308,000, or 1.6%, to $19.9 million for the quarter ended June 30, 2021, from $19.6 million for the quarter ended March 31, 2021, primarily due to a $274,000 increase in compensation and employee benefits, a $166,000 increase in data processing fees, and a $219,000 increase in advertising expense, partially offset by a $201,000 decrease in occupancy expense and a $74,000 decrease in professional fees.

The Company recorded income tax expense of $7.6 million for the quarter ended June 30, 2021, compared to $6.9 million for the quarter ended March 31, 2021. The effective tax rate for the quarter ended June 30, 2021 was 27.8%, compared to 27.1% for the quarter ended and March 31, 2021.

Financial Condition

Total assets decreased $87.6 million, or 1.6%, to $5.43 billion at June 30, 2021, from $5.51 billion at December 31, 2020. The decrease was primarily due to a decrease in available-for-sale debt securities of $167.4 million, or 13.2%, and a decrease in total loans of $25.9 million, or 0.7%, partially offset by an increase in cash and cash equivalents of $105.6 million, or 120.7%.

As of June 30, 2021, we estimate that our non-owner occupied commercial real estate concentration (as defined by regulatory guidance) to total risk-based capital was approximately 461.2%. 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 its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, ability to pay dividends, and profitability.

Cash and cash equivalents increased by $105.6 million, or 120.7%, to $193.2 million at June 30, 2021, from $87.5 million at December 31, 2020, primarily due to the liquidity obtained from loans and securities sales or paydowns as well as growth in deposits. 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, decreased $6.0 million to $3.82 billion at June 30, 2021, from $3.82 billion at December 31, 2020, primarily due to the $126.3 million sale of a portfolio of multifamily loans and loan payoffs in other segments, related to refinancings as rates are at historical lows, partially offset by loan growth. One-to-four family residential loans decreased by $16.8 million, or 8.0%, to $194.0 million at June 30, 2021, from $210.8 million at December 31, 2020. Multifamily real estate loans decreased by $12.7 million, or 0.5%, to $2.50 billion at June 30, 2021, from $2.51 billion at December 31, 2020. Construction and land loans decreased by $11.2 million, or 15.1%, to $63.1 million at June 30, 2021 from $74.3 million at December 31, 2020. These decreases were offset by increases in commercial real estate loans of $18.3 million, or 2.6%, to $735.3 million at June 30, 2021 from $717.0 million at December 31, 2020, and in commercial and industrial loans of $15.2 million, or 7.8%, to $209.6 million at June 30, 2021, from $194.4 million at December 31, 2020.

The increase in commercial and industrial loans was primarily due to loans originated under the PPP as authorized by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The PPP loans are administered by the Small Business Administration ("SBA"), which provides 100% federally guaranteed loans for small businesses to cover payroll, utilities, rent and interest. These small business loans may be forgiven if borrowers maintain their payrolls and satisfy certain other conditions for a period of time during the COVID-19 pandemic. The Company began accepting and funding loans under this program in April 2020. There were 1,453 PPP loans totaling $132.7 million at June 30, 2021, compared to 1,275 loans totaling $126.5 million at December 31, 2020. During the six months ended June 30, 2021, the Company originated and the SBA approved funding for $81.4 million of PPP loans. PPP provides for lender processing fees that range from 1% to 5% of the final disbursement made to individual borrowers. As of June 30, 2021, we have received loan processing fees of $9.5 million, of which $4.7 million has been recognized in earnings, including $2.8 million recognized in the six months ended June 30, 2021. The remaining unearned fees will be recognized in income over the remaining term of the loans.

The following tables detail multifamily real estate originations for the six months ended June 30, 2021 and 2020 (dollars in thousands): 

For the Six Months Ended June 30, 2021
Multifamily Originations Weighted Average Interest Rate Weighted Average LTV Ratio Weighted Average Months to Next Rate Change or Maturity for Fixed Rate Loans (F)ixed or (V)ariable Amortization Term
$385,363   3.12% 62% 74 V 10 to 30 Years


For the Six Months Ended June 30, 2020
Multifamily Originations Weighted Average Interest Rate Weighted Average LTV Ratio Weighted Average Months to Next Rate Change or Maturity for Fixed Rate Loans (F)ixed or (V)ariable Amortization Term
$258,084   3.66% 60% 92 V 30 Years
1,500   4.40% 47% 180 F 15 Years
$259,584   3.66% 60%      

There were no loans held-for-sale at June 30, 2021 compared to $19.9 million at December 31, 2020. At December 31, 2020, loans held-for-sale were comprised of commercial real estate and multifamily loans, primarily accommodation loans that were modified in the form of interest and/or principal payment deferrals due to COVID-19 related hardships, and had not returned to contractual payments after 180 days of relief. The sale of these loans was completed in March 2021.

PCD loans totaled $16.7 million at June 30, 2021, and $18.5 million at December 31, 2020. Upon adoption of the CECL accounting standard on January 1, 2021, the allowance for credit losses related to PCD loans was recorded through a gross-up that increased the amortized cost-basis of PCD loans by $6.8 million with a corresponding increase to the allowance for credit losses. The decrease in the PCD loan balance at June 30, 2021 was due to PCD loans being sold and paid off during the period. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $443,000 and $2.9 million attributable to PCD loans for the three and six months ended June 30, 2021, respectively, as compared to $717,000 and $1.5 million for the three and six months ended June 30, 2020, respectively. The increase in income accreted for the six months ended June 30, 2021, was related to the payoff of PCD loans. PCD loans had an allowance for credit losses of approximately $4.8 million at June 30, 2021.

The Company’s available-for-sale debt securities portfolio decreased by $167.4 million, or 13.2%, to $1.10 billion at June 30, 2021, from $1.26 billion at December 31, 2020. The decrease was primarily attributable to paydowns, maturities, calls, and sales. At June 30, 2021, $970.1 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 $2.8 million in U.S. Government agency securities, $124.4 million in corporate bonds, all of which were considered investment grade at June 30, 2021, and $78,000 in municipal bonds.
  
Total liabilities decreased $86.9 million, or 1.8%, to $4.67 billion at June 30, 2021, from $4.76 billion at December 31, 2020. The decrease was primarily attributable to a decrease in Federal Home Loan Bank and other borrowings of $96.5 million and a decrease in securities sold under agreements to repurchase of $25.0 million, partially offset by an increase in deposits of $31.7 million and an increase advance payments by borrowers for taxes and insurance of $4.5 million.

Deposits increased $31.7 million, or 0.8%, to $4.11 billion at June 30, 2021, as compared to $4.08 billion at December 31, 2020. The increase was attributable to increases of $205.6 million in transaction accounts and $18.9 million in savings accounts, partially offset by a decrease of $184.2 million in money market accounts and $8.5 million in certificates of deposit. We continue to see balance runoff from high cost money market and certificates of deposit categories as we have strategically chosen not to compete on rate at this time.

Deposit account balances are summarized as follows (dollars in thousands):

 June 30, 2021 March 31, 2021 December 31, 2020
Transaction:     
Non-interest bearing checking$826,823  $771,432  $695,831 
Negotiable orders of withdrawal and interest-bearing checking979,788  918,367  905,208 
Total transaction1,806,611  1,689,799  1,601,039 
Savings and Money market:     
Savings1,159,566  1,150,383  1,140,717 
Money market628,979  665,344  713,168 
Brokered money market    100,000 
Total savings1,788,545  1,815,727  1,953,885 
Certificates of deposit:     
Brokered deposits103,533  181,827  47,827 
$250,000 and under324,480  357,803  374,344 
Over $250,00085,100  90,560  99,456 
Total certificates of deposit513,113  630,190  521,627 
Total deposits$4,108,269  $4,135,716  $4,076,551 

Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

 June 30, 2021 March 31, 2021 December 31, 2020
      
Business customers$1,088,642  $1,023,970  $977,778 
Municipal customers$547,920  $514,653  $501,040 

Borrowings and securities sold under agreements to repurchase decreased to $470.3 million at June 30, 2021, from $591.8 million at December 31, 2020. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent as part of leverage strategies.

The following is a table of term borrowing maturities (excluding capitalized leases and overnight borrowings) and the weighted average rate by year at June 30, 2021 (dollars in thousands):

Year Amount Weighted Average Rate
2021 $48,275 2.00%
2022 120,000 2.29%
2023 87,500 2.89%
2024 50,000 2.47%
2025 112,500 1.48%
Thereafter 45,000 1.45%
  $463,275 2.11%

Total stockholders’ equity decreased by $771,000 to $753.2 million at June 30, 2021, from $754.0 million at December 31, 2020. The decrease was attributable to $24.8 million in stock repurchases, $11.8 million in dividend payments, and a $2.7 million decrease in accumulated other comprehensive income associated with a reduction in unrealized gains on our debt securities available-for-sale portfolio, partially offset by net income of $38.5 million for the six months ended June 30, 2021, and a $3.2 million increase in equity award activity. The Company repurchased 1,643,094 shares of its common stock outstanding at an average price of $15.11 for a total of $24.8 million during the six months ended June 30, 2021, pursuant to the approved stock repurchase plans. As of June 30, 2021, the Company had approximately $36.7 million in remaining capacity under its current repurchase program. In connection with the adoption of CECL, effective January 1, 2021, the Company recognized a cumulative effect adjustment that reduced stockholders’ equity by $3.1 million, net of tax, to establish initial allowances against credit losses on loans and off-balance sheet credit exposures.

The Company continues to maintain a strong liquidity and capital position, despite the economic uncertainties presented by the COVID-19 pandemic. The Company's most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business.

The Company had the following primary sources of liquidity at June 30, 2021 (dollars in thousands): 

Cash and cash equivalents(1)$174,503 
Corporate bonds$117,794 
Multifamily loans(2)$1,426,296 
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2)$450,092 
  

(1) Excludes $18,681 of cash at Northfield Bank.
(2) Represents remaining borrowing potential.        

The Company and the Bank elected to opt into the Community Bank Leverage Ratio (“CBLR”) framework, effective for the first quarter of 2020. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At June 30, 2021, the Company and the Bank's estimated CBLR ratios were 12.77% and 11.37% respectively, which exceeded the minimum requirement to be considered well-capitalized of 8%. As a result of the COVID-19 pandemic the Federal Regulators have lowered the CBLR ratio to 8%, which will phase back to the original legislation of 9% by 2022.

Asset Quality

The following table details total non-accrual loans (excluding PCD), non-performing loans, non-performing assets, troubled debt restructurings on which interest is accruing, and accruing loans 30 to 89 days delinquent at June 30, 2021, March 31, 2021, and December 31, 2020 (dollars in thousands):

 June 30, 2021 March 31, 2021 December 31, 2020
Non-accrual loans:     
Held-for-investment     
Real estate loans:     
Commercial$5,028  $4,961  $6,229 
One-to-four family residential320  805  906 
Construction and land1,107  1,150   
Multifamily1,131  1,145  1,153 
Home equity and lines of credit128  187  191 
Commercial and industrial407  198  37 
Other3     
Total non-accrual loans8,124  8,446  8,516 
Loans delinquent 90 days or more and still accruing:     
Held-for-investment     
Real estate loans:     
Commercial216  219  500 
One-to-four family residential223  172  174 
Multifamily  516   
Home equity and lines of credit98     
Commercial and industrial194  738  436 
Other  3  3 
Total loans held-for-investment delinquent 90 days or more and still accruing731  1,648  1,113 
Non-performing loans held-for-sale    19,895 
Total non-performing loans8,855  10,094  29,524 
Other real estate owned100  100   
Total non-performing assets$8,955  $10,194  $29,524 
Non-performing loans to total loans0.23% 0.26% 0.77%
Non-performing assets to total assets0.17% 0.18% 0.54%
Loans subject to restructuring agreements and still accruing$7,603  $7,326  $7,697 
Accruing loans 30 to 89 days delinquent$5,884  $14,148  $13,982 

Other Real Estate Owned

Other real estate owned is comprised of one property acquired during the six months ended June 30, 2021, as a result of foreclosure. The property is located in New Jersey and had a carrying value of approximately $100,000 and was included in other assets on the consolidated balance sheet at June 30, 2021.

Non-performing Loans Held-for-Sale

Non-performing loans held for sale at December 31, 2020, totaled $19.9 million and were comprised of high risk commercial real estate and multifamily loans, primarily accommodation loans that were modified in the form of interest and/or principal payment deferrals due to COVID-19 related hardships, and had not returned to contractual payments after 180 days of relief. The sale of these loans was completed in the first quarter of 2021.

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual status totaled $5.9 million, $14.1 million, and $14.0 million at June 30, 2021, March 31, 2021, and December 31, 2020, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at June 30, 2021 and December 31, 2020 (dollars in thousands):     

 June 30, 2021 March 31, 2021 December 31, 2020
Held-for-investment     
Real estate loans:     
Commercial$2,654  $4,457  $8,792 
One-to-four family residential1,219  4,023  1,152 
Multifamily1,686  2,419  1,893 
Construction and land  390  994 
Home equity and lines of credit203  372  380 
Commercial and industrial loans122  2,480  760 
Other loans  7  11 
Total delinquent accruing loans held-for-investment$5,884  $14,148  $13,982 

PCD Loans (Held-for-Investment)

Under the CECL standard, the Company will continue to account for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($16.7 million at June 30, 2021 and $18.5 million at December 31, 2020) as accruing, even though they may be contractually past due. At June 30, 2021, 2.4% of PCD loans were past due 30 to 89 days, and 20.4% were past due 90 days or more, as compared to 9.6% and 35.2%, respectively, at December 31, 2020.

COVID-19 Exposure

Management continues to evaluate the Company's exposure to increased loan losses related to the COVID-19 pandemic, in particular the commercial real estate and multifamily loan portfolios. During the second quarter of 2020, the Company implemented a customer relief program to assist borrowers that may be experiencing financial hardship due to COVID-19 related challenges. The relief program grants principal and/or interest payment deferrals typically for a period of 90 days, which management may choose to extend for additional 90 days periods. At the peak of forbearance, June 2020, the Company had 286 loans approved for payment deferral representing $360.2 million, or approximately 10% of the Company's loan portfolio. As of June 30, 2021, the Company had approximately $21.5 million, or 21 outstanding loans remaining in deferral, representing approximately 0.6% of the Company’s outstanding loan portfolio (excluding PCD loans) as of that date. Loans currently in deferment status (“COVID-19 Modified Loans”) will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. COVID-19 Modified Loans are required to make escrow payments for real estate taxes and insurance, if applicable. The COVID-19 Modified Loan agreements also require loans to be brought back to their fully contractual terms within 12 to 18 months and include covenants that prohibit distributions, bonuses, or payments of management fees to related entities until all deferred payments are made. Consistent with industry regulatory guidance, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans throughout the agreed upon deferral period. Borrowers, which were delinquent in their payments to the Bank, prior to requesting a COVID-19 related financial hardship payment deferral are reviewed on a case by case basis for TDR classification and non-performing loan status.

The following table sets forth the property types collateralizing our loans held-for-investment (excluding PCD) in forbearance as of June 30, 2021 (dollars in thousands):

 Loan Portfolio by Property Type at June 30, 2021Loans in Forbearance for COVID Relief as of June 30, 2021
 Number of Loans Amount  Average Loan Size Weighted Average LTV Ratio % of Total Loans  Number of Loans (2) Amount  Average Loan Size Weighted Average LTV Ratio % of Portfolio by Property Type
Commercial Real Estate and Multifamily                   
Multifamily(1)1,135 $2,496,614  $2,200  55% 65.7% 4 $10,739  $2,685  34% 0.43%
Mixed use (majority of space is non-residential)219 147,199  672  46% 3.9% 1 2,890  2,890  37% 1.96%
Retail86 144,399  1,679  48% 3.8% 1 607  607  55% 0.42%
Office buildings107 103,996  972  46% 2.7% 1 551  551  46% 0.53%
Accommodations9 51,545  5,727  37% 1.4% 1 155  155  16% 0.30%
Nursing Home5 27,501  5,500  57% 0.7%      —% %
Medical Office Buildings24 26,661  1,111  63% 0.7%      —% %
Industrial and Manufacturing (Office and Plant)21 17,552  836  44% 0.5%      —% %
Warehousing29 20,677  713  45% 0.5%      —% %
Restaurant22 12,831  583  51% 0.3%      —% %
Religious16 10,556  660  39% 0.3%      —% %
Bank Branch6 5,441  907  44% 0.1%      —% %
Schools/Child Day care6 5,531  922  36% 0.2%      —% %
Automobile18 6,384  355  52% 0.2%      —% %
Funeral Home2 1,756  878  62% %      —% %
Recreational5 7,044  1,409  47% 0.2% 2 3,221  1,611  47% 45.73%
Car Wash1 489  489  18% %      —% %
Other146 145,740  998  59% 3.8%      —% %
Total commercial real estate and multifamily1,857 3,231,916  1,740  54% 85.0% 10 18,163  1,816  38% 0.56%
One-to-four family residential614 193,976  316  35% 5.1% 5 2,297  459  39% 1.18%
Home equity and lines of credit1,829 99,816  55  47% 2.6% 1 197  197  29% 0.20%
Construction and land34 63,123  1,857  40% 1.7%      —% %
Commercial and industrial loans2,230 209,579  94  NM 5.5% 5 850  170  NM 0.41%
Other121 2,170  18  NM 0.1%      —% %
Total loans (excluding PCD)6,685 $3,800,580  569    100.0% 21 $21,507  1,024    0.57%

(1) Property type is apartment units equal or greater than five units.

Of the loans currently in deferral as of June 30, 2021, two loans totaling $239,000 are in their first deferral period and 19 loans totaling $21.3 million are repeat deferrals. As of July 26, 2021, eight loans totaling $11.6 million in the table above had returned to contractual payments, including one multifamily loan totaling $9.4 million.

About Northfield Bank

Northfield Bank, founded in 1887, operates 38 full-service banking 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

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, the effects of the COVID-19 pandemic, including the effects of the steps taken to address the pandemic and their impact on the Company’s market and employees, 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, including Victory, 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.

Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519


NORTHFIELD BANCORP, INC.
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
(Dollars in thousands, except per share amounts) (unaudited)

       At or For the
 At or For the Three Months Ended Six Months Ended
 June 30, March 31,  June 30,
 2021 2020 2021 2021 2020
Selected Financial Ratios:         
Performance Ratios (1)         
Return on assets (ratio of net income to average total assets) (5) 1.44% 0.85% 1.36% 1.40% 0.61%
Return on equity (ratio of net income to average equity) (5) (6) (8) (9)10.53  6.12  10.03  10.28  4.37 
Average equity to average total assets13.64  13.92  13.57  13.60  14.02 
Interest rate spread2.84  2.31  2.98  2.92  2.31 
Net interest margin2.96  2.53  3.10  3.03  2.55 
Efficiency ratio (2) (5)45.57  51.80  45.70  45.63  51.99 
Non-interest expense to average total assets1.44  1.41  1.43  1.43  1.34 
Non-interest expense to average total interest-earning assets1.52  1.50  1.51  1.52  1.42 
Average interest-earning assets to average interest-bearing liabilities134.73  125.21  132.26  133.49  124.31 
Asset Quality Ratios:         
Non-performing assets to total assets0.17  0.19  0.18  0.17  0.19 
Non-performing loans (3) to total loans (4)0.23  0.27  0.26  0.23  0.27 
Allowance for credit losses to non-performing loans (6)446.00  393.70  427.95  446.00  393.70 
Allowance for credit losses to total loans held-for-investment, net (4) (6) (7) (8) 1.03  1.07  1.10  1.03  1.07 

(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 PCD loans), and are included in total loans held-for-investment, net.
(4) Includes originated loans held-for-investment, PCD loans, and acquired loans.
(5) The three and six months ended June 30, 2020, included merger-related expenses of $205,000 and $384,000, respectively.
(6) The three and six months ended June 30, 2020, included an allowance for loan losses of $1.8 million ($1.3 million after-tax) and $8.0 million ($5.9 million after-tax), respectively, related to additional factors considered for COVID-19.
(7) Excluding PPP loans (which are fully government guaranteed and do not carry any provision for losses) of $132.7 million, $167.9 million, and $105.7 million at June 30, 2021, March 31, 2021, and June 30, 2020, respectively, the allowance for loan losses to total loans held for investment, net, totaled 1.07%, 1.15%, and 1.11% respectively, at June 30, 2021, March 31, 2021, and June 30, 2020.
(8) The Company adopted the CECL accounting standard effective January 1, 2021, and recorded a $10.3 million increase to its allowance for loan losses, including reserves of $6.8 million related to PCD loans. Ratios as of June 30, 2020 do not reflect the adoption of CECL.
(9) In connection with the adoption of CECL, the Company recognized a cumulative effect adjustment that reduced stockholders’ equity by $3.1 million, net of tax.

NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts) (unaudited)

 June 30, 2021 March 31, 2021 December 31, 2020
ASSETS:     
Cash and due from banks$18,681  $15,920  $16,115 
Interest-bearing deposits in other financial institutions174,503  111,650  71,429 
Total cash and cash equivalents193,184  127,570  87,544 
Trading securities12,743  12,142  12,291 
Debt securities available-for-sale, at estimated fair value1,097,423  1,207,238  1,264,805 
Debt securities held-to-maturity, at amortized cost6,417  6,913  7,234 
Equity securities219  473  253 
Loans held-for-sale    19,895 
Loans held-for-investment, net3,817,273  3,933,015  3,823,238 
Allowance for credit losses(39,493) (43,197) (37,607)
Net loans held-for-investment3,777,780  3,889,818  3,785,631 
Accrued interest receivable14,521  14,753  14,690 
Bank-owned life insurance163,628  162,771  161,924 
Federal Home Loan Bank of New York stock, at cost24,508  28,641  28,641 
Operating lease right-of-use assets34,574  35,662  36,741 
Premises and equipment, net27,268  27,509  28,188 
Goodwill41,012  41,320  41,320 
Other assets33,633  22,114  25,387 
Total assets$5,426,910  $5,576,924  $5,514,544 
      
LIABILITIES AND STOCKHOLDERS’ EQUITY:     
LIABILITIES:     
Deposits$4,108,269  $4,135,716  $4,076,551 
Securities sold under agreements to repurchase50,000  75,000  75,000 
Federal Home Loan Bank advances and other borrowings420,329  517,170  516,789 
Lease liabilities40,721  42,067  42,734 
Advance payments by borrowers for taxes and insurance24,203  24,027  19,677 
Accrued expenses and other liabilities30,178  28,379  29,812 
Total liabilities4,673,700  4,822,359  4,760,563 
      
STOCKHOLDERS’ EQUITY:     
Total stockholders’ equity753,210  754,565  753,981 
Total liabilities and stockholders’ equity$5,426,910  $5,576,924  $5,514,544 
      
Total shares outstanding50,843,651  51,638,582  52,209,897 
Tangible book value per share (1)$14.00  $13.80  $13.64 

(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 $540,000, $590,000, and $640,000 at June 30, 2021, March 31, 2021, and December 31, 2020, respectively, and are included in other assets.

NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(Dollars in thousands, except share and per share amounts) (unaudited)

 For the Three Months Ended For the Six Months Ended
 June 30, March 31, June 30,
 2021 2020 2021 2021 2020
Interest income:         
Loans$39,699  $35,343  $41,277  $80,976  $70,680 
Mortgage-backed securities2,682  4,304  2,959  5,641  9,926 
Other securities484  777  424  908  1,801 
FHLB of New York dividends336  456  370  706  1,033 
Deposits in other financial institutions35  31  37  72  203 
Total interest income43,236  40,911  45,067  88,303  83,643 
Interest expense:         
Deposits1,671  7,473  1,870  3,541  16,752 
Borrowings2,878  3,208  3,021  5,899  6,728 
Total interest expense4,549  10,681  4,891  9,440  23,480 
Net interest income38,687  30,230  40,176  78,863  60,163 
(Credit)/provision for loan losses(3,701) 1,921  (2,374) (6,075) 10,104 
Net interest income after (credit)/provision for loan losses42,388  28,309  42,550  84,938  50,059 
Non-interest income:         
Fees and service charges for customer services1,327  666  1,197  2,524  1,786 
Income on bank-owned life insurance857  865  848  1,705  1,741 
Gains (losses) on available-for-sale debt securities, net509  73  97  606  60 
Gains (losses) on trading securities, net807  1,626  364  1,171  (366)
Gain on sale of loans1,401  665    1,401  665 
Other15  343  130  145  460 
Total non-interest income4,916  4,238  2,636  7,552  4,346 
Non-interest expense:         
Compensation and employee benefits10,806  10,444  10,532  21,338  17,733 
Occupancy3,500  3,018  3,701  7,201  6,078 
Furniture and equipment442  349  437  879  682 
Data processing1,798  1,612  1,632  3,430  3,072 
Professional fees832  1,045  906  1,738  2,154 
Advertising684  343  465  1,149  1,161 
Federal Deposit Insurance Corporation insurance346  216  375  721  216 
Other1,463  828  1,515  2,978  2,441 
Total non-interest expense19,871  17,855  19,563  39,434  33,537 
Income before income tax expense27,433  14,692  25,623  53,056  20,868 
Income tax expense7,639  3,899  6,946  14,585  5,524 
Net income $19,794  $10,793  $18,677  $38,471  $15,344 
Net income per common share:         
Basic$0.40  $0.23  $0.38  $0.78  $0.33 
Diluted$0.40  $0.23  $0.38  $0.78  $0.33 
Basic average shares outstanding48,907,585  46,837,473  49,528,419  49,216,157  46,814,647 
Diluted average shares outstanding49,307,661  46,871,490  49,633,644  49,468,808  46,927,504 


NORTHFIELD BANCORP, INC.
ANALYSIS OF NET INTEREST INCOME
(Dollars in thousands) (unaudited)

 For the Three Months Ended
 June 30, 2021 March 31, 2021 June 30, 2020
 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)$3,948,136  $39,699  4.03% $3,873,884  $41,277  4.32% $3,587,772  $35,343  3.96%
Mortgage-backed securities (3)967,526  2,682  1.11  1,116,281  2,959  1.08  913,203  4,304  1.90 
Other securities (3)141,475  484  1.37  101,523  424  1.69  128,818  777  2.43 
Federal Home Loan Bank of New York stock27,703  336  4.86  28,640  370  5.24  29,478  456  6.22 
Interest-earning deposits in financial institutions150,494  35  0.09  133,208  37  0.11  137,120  31  0.09 
Total interest-earning assets5,235,334  43,236  3.31  5,253,536  45,067  3.48  4,796,391  40,911  3.43 
Non-interest-earning assets295,768      310,681      300,511     
Total assets$5,531,102      $5,564,217      $5,096,902     
                  
Interest-bearing liabilities:                 
Savings, NOW, and money market accounts$2,754,346  845  0.12% $2,768,816  $932  0.14% $2,132,213  $2,894  0.55%
Certificates of deposit574,899  826  0.58  611,267  938  0.62  1,023,276  4,579  1.80 
Total interest-bearing deposits3,329,245  1,671  0.20  3,380,083  1,870  0.22  3,155,489  7,473  0.95 
Borrowed funds556,682  2,878  2.07  591,993  3,021  2.07  675,109  3,208  1.91 
Total interest-bearing liabilities3,885,927  4,549  0.47  3,972,076  4,891  0.50  3,830,598  10,681  1.12 
Non-interest bearing deposits795,613      739,064      465,082     
Accrued expenses and other liabilities95,274      98,261      91,957     
Total liabilities4,776,814      4,809,401      4,387,637     
Stockholders' equity754,288      754,816      709,265     
Total liabilities and stockholders' equity$5,531,102      $5,564,217      $5,096,902     
                  
Net interest income  $38,687      $40,176      $30,230   
Net interest rate spread (4)    2.84%     2.98%     2.31%
Net interest-earning assets (5)$1,349,407      $1,281,460      $965,793     
Net interest margin (6)    2.96%     3.10%     2.53%
Average interest-earning assets to interest-bearing liabilities    134.73%     132.26%     125.21%

(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.

 For the Six Months Ended
 June 30, 2021 June 30, 2020
 Average Outstanding Balance Interest Average Yield/ Rate (1) Average Outstanding Balance Interest Average Yield/ Rate (1)
Interest-earning assets:           
Loans (2)$3,911,215  $80,976  4.18% $3,529,569  $70,680  4.03%
Mortgage-backed securities (3)1,041,493  5,641  1.09  934,114  9,926  2.14 
Other securities (3)121,609  908  1.51  142,446  1,801  2.54 
Federal Home Loan Bank of New York stock28,169  706  5.05  30,371  1,033  6.84 
Interest-earning deposits in financial institutions141,899  72  0.10  103,673  203  0.39 
Total interest-earning assets5,244,385  88,303  3.40  4,740,173  83,643  3.55 
Non-interest-earning assets303,183      295,218     
Total assets$5,547,568      $5,035,391     
            
Interest-bearing liabilities:           
Savings, NOW, and money market accounts$2,761,541  $1,777  0.13% $2,067,140  $6,967  0.68%
Certificates of deposit592,983  1,764  0.60  1,068,660  9,785  1.84 
Total interest-bearing deposits3,354,524  3,541  0.21  3,135,800  16,752  1.07 
Borrowed funds574,240  5,899  2.07  677,293  6,728  2.00 
Total interest-bearing liabilities$3,928,764  9,440  0.48  $3,813,093  23,480  1.24 
Non-interest bearing deposits767,495      423,563     
Accrued expenses and other liabilities96,759      92,543     
Total liabilities4,793,018      4,329,199     
Stockholders' equity754,550      706,192     
Total liabilities and stockholders' equity$5,547,568      $5,035,391     
            
Net interest income  $78,863      $60,163   
Net interest rate spread (4)    2.92%     2.31%
Net interest-earning assets (5)$1,315,621      $927,080     
Net interest margin (6)    3.03%     2.55%
Average interest-earning assets to interest-bearing liabilities    133.49%     124.31%
            

(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.


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