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What changed in Northfield Bancorp, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Northfield Bancorp, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+465 added−420 removedSource: 10-K (2026-03-02) vs 10-K (2025-03-03)

Top changes in Northfield Bancorp, Inc.'s 2025 10-K

465 paragraphs added · 420 removed · 350 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

158 edited+24 added−25 removed152 unchanged
Biggest changeNorthfield Bank’s operations are also subject to federal laws applicable to credit transactions, such as the: • Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; • Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one-to-four family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; • Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; • Equal Credit Opportunity Act and the Fair Housing Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; • Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; • Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected; 27 • Flood Disaster Protection Act, requiring flood insurance of collateral properties located in designated flood zones; • Servicemembers Civil Relief Act, providing a wide range of protections in lending for individuals entering or called to active duty in the military, and for deployed service members; and • Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
Biggest changeNorthfield Bank’s operations are also subject to federal laws applicable to credit transactions, such as the: • Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; • Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one-to-four family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services; • Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; • Equal Credit Opportunity Act and the Fair Housing Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; • Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; • Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected; • Flood Disaster Protection Act, requiring flood insurance of collateral properties located in designated flood zones; • Servicemembers Civil Relief Act, providing a wide range of protections in lending for individuals entering or called to active duty in the military, and for deployed service members; and • Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws. 27 The operations of Northfield Bank also are subject to the: • The Bank Secrecy Act and USA PATRIOT Act, which require federal savings associations to, among other things, establish anti-money laundering and countering the financing of terrorism compliance programs, including customer identification programs, and customer due diligence policies and controls, designed to detect and deter money laundering, terrorist financing, and other illicit activities; • Regulations of the Office of Foreign Assets Control, which enforce economic and trade sanctions against targeted foreign countries and regimes, individuals, and organizations; • Truth in Savings Act (Regulation DD), which governs consumer deposit account disclosures and advertising; • Expedited Funds Availability Act (Regulation CC) and the Check Clearing for the 21 Act (Check 21), governing funds availability, check processing, and relate disclosure requirements; • Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; • Electronic Funds Transfer Act (implemented by Regulation E), which governs electronic fund transfers to and from customers deposit accounts including automatic deposits and withdrawals, and established consumer's rights, responsibilities, and liability limits related to the use of automated teller machines, debit cards, and other electronic banking services; and • The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties and requires all financial institutions offering products or services to retail customers to provide such customers with the financial institution’s privacy policy and allow such customers the opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.
Northfield Bank offers a variety of deposit accounts, including certificates of deposit, passbook, statement, money market savings and transaction deposit accounts, which are Northfield Bank’s primary source of funds for its lending and investing activities. Northfield Bank also borrows funds, principally through FHLBNY advances and repurchase agreements with brokers.
Northfield Bank offers a variety of deposit accounts, including transaction, money market savings, certificates of deposit, passbook and statement savings deposit accounts, which are Northfield Bank’s primary source of funds for its lending and investing activities. Northfield Bank also borrows funds, principally through FHLBNY advances and repurchase agreements with brokers.
Our commercial and retail banking network consists of multiple delivery channels, including full-service banking offices, automated teller machines and telephone and internet banking capabilities, mobile banking and remote deposit capture. In addition, Northfield Bank offers ACH and wire transfers, cash management, positive pay, and remote deposit capture services for our commercial customers.
Our commercial and retail banking network consists of multiple delivery channels, including full-service banking offices, automated teller machines, telephone and internet banking capabilities, mobile banking and remote deposit capture. In addition, Northfield Bank offers ACH and wire transfers, cash management, positive pay, and remote deposit capture services for our commercial customers.
Adjustable-rate loan originations are generally tied to a specifically identified market rate index. We also originate, to a lesser extent, 10- to 15-year fixed-rate, fully amortizing loans.
Adjustable-rate loan originations are generally tied to a specifically identified market rate index. We also originate, to a lesser extent, 10- to 15-year fixed-rate, fully amortizing loans.
Deposits traditionally have been our primary source of funds for our securities and lending activities. We also borrow from the FHLBNY, the Federal Reserve Bank and other financial institutions to supplement cash flow needs, to manage the maturities of liabilities for interest rate and investment risk management purposes, and to manage our cost of funds.
Deposits traditionally have been our primary source of funds for our lending and securities activities. We also borrow from the FHLBNY, the Federal Reserve Bank and other financial institutions to supplement cash flow needs, to manage the maturities of liabilities for interest rate and investment risk management purposes, and to manage our cost of funds.
Higher levels of capital are required for asset categories believed to present greater risk. Common equity Tier 1 capital generally is defined as common stockholders’ equity and retained earnings. Tier 1 capital generally is defined as common equity Tier 1 plus additional Tier 1 capital.
Higher levels of capital are required for asset categories believed to present greater risk. Common equity Tier 1 capital generally is defined as common stockholders’ equity and retained earnings. Tier 1 capital generally is defined as common equity Tier 1 capital plus additional Tier 1 capital.
Regulation W also provides that transactions with affiliates, including covered transactions, must be on terms and under circumstances, including credit standards, that are substantially the same or at least as favorable to the federal savings association as those prevailing at the time for comparable transactions with or involving non-affiliated companies.
Regulation W also provides that transactions with affiliates, including covered transactions, must be on terms and under circumstances, including credit standards, that are substantially the same as, or at least as favorable to the federal savings association as those prevailing at the time for comparable transactions with or involving non-affiliated companies.
Northfield Bancorp, Inc., a Delaware corporation (“Northfield Bancorp” or the “Company”), was organized in 2010 and is the holding company for Northfield Bank (the “Bank”). Northfield Bancorp uses the support staff and offices of the Bank and reimburses Northfield Bank for these services. If Northfield Bancorp expands or changes its business in the future, it may hire its own employees.
Northfield Bancorp, Inc., a Delaware corporation (“Northfield Bancorp” or the “Company”), was organized in 2010 and is the holding company for Northfield Bank (the “Bank”). Northfield Bancorp uses the support staff and offices of the Bank and reimburses Northfield Bank for these services. If Northfield Bancorp expands or changes its business, it may hire its own employees.
We also maintain the Northfield Bank Employee Stock Ownership Plan (the “ESOP”) for eligible employees. The ESOP is a tax-qualified plan invested in our common stock. The ESOP provides employees with the opportunity to receive a retirement benefit based on the value of our common stock, and is 100% funded by Northfield Bank. Employee Engagement .
We also maintain the Northfield Bank Employee Stock Ownership Plan (the “ESOP”) for eligible employees. The ESOP is a tax-qualified plan invested in our common stock. The ESOP provides employees with the opportunity to receive a retirement benefit based on the value of our common stock, and is 100% funded by Northfield Bank. 21 Employee Engagement .
These forward-looking statements include, but are not limited to: • statements of our goals, intentions, and expectations; • statements regarding our business plans, prospects, growth and operating strategies; • statements regarding the quality of our loan, investment and deposit portfolios; • statements about our performance, financial condition and liquidity; and • estimates of our risks and future costs and benefits.
These forward-looking statements include, but are not limited to: • statements of our goals, intentions, and expectations; • statements regarding our business plans, prospects, growth and operating strategies; • statements regarding the quality of our loan and investment portfolios; • statements about our performance, financial condition and liquidity; and • estimates of our risks and future costs and benefits.
These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties, and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
These forward-looking statements are based on current beliefs and expectations of our management and are subject to significant business, economic and competitive uncertainties, and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
In general, the maximum loan-to-value ratio for land acquisition loans is 50% of the appraised value of the property, and the maximum term of these loans is three years. 9 Construction and land loans generally carry higher interest rates and have shorter terms than multifamily and commercial real estate loans.
In general, the maximum loan-to-value ratio for land acquisition loans is 50% of the appraised value of the property, and the maximum term of these loans is three years. Construction and land loans generally carry higher interest rates and have shorter terms than multifamily and commercial real estate loans.
Our market areas have a high concentration of financial institutions, including large money center and regional banks, non-traditional banks, community banks, and credit unions. We face additional competition for deposits from money market funds, brokerage firms, mutual funds, and insurance companies.
Our market areas have a high concentration of financial institutions, including large money center and regional banks, non-traditional banks and lenders, community banks, and credit unions. We face additional competition for deposits from money market funds, brokerage firms, mutual funds, and insurance companies.
Northfield Bank also purchases investment securities, including mortgage-backed securities and corporate bonds, and, to a lesser extent, deposit funds in other financial institutions, including the Federal Reserve Bank of New York (or the “Federal Reserve Bank”) and the Federal Home Loan Bank (“FHLB”) of New York (“FHLBNY”).
Northfield Bank also purchases investment securities, including mortgage-backed securities and corporate bonds, and, to a lesser extent, deposit funds in other financial institutions, including the Federal Reserve Bank of New York (the “Federal Reserve Bank”) and the Federal Home Loan Bank (“FHLB”) of New York (“FHLBNY”).
Northfield Bank’s relationship with its depositors and borrowers also is regulated to a great extent by federal law and, to a much lesser extent, state law, especially in matters concerning the ownership of deposit accounts and the form and content of Northfield Bank’s loan documents.
Northfield Bank’s relationship with its depositors and borrowers is regulated to a great extent by federal law and, to a much lesser extent, state law, especially in matters concerning the ownership of deposit accounts and the form and content of Northfield Bank’s loan documents.
A financial holding company may engage in activities that are financial in nature, including underwriting equity securities and insurance as well as activities that are incidental to financial activities or complementary to a financial activity. Northfield Bancorp Inc. has not elected financial holding company status.
A financial holding company may engage in activities that are financial in nature, including underwriting equity securities and insurance as well as activities that are incidental to financial activities or complementary to a financial activity. Northfield Bancorp has not elected financial holding company status.
Change in Bank Control Act and Regulations Under the Change in Bank Control Act, no person may acquire control of a savings and loan holding company, such as Northfield Bancorp, unless the FRB has been given 60 days prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.
Change in Bank Control Act and Regulations Under the Change in Bank Control Act, no person may acquire control of a savings and loan holding company, such as Northfield Bancorp, unless the FRB has been given at least 60 days prior written notice and has not issued a notice disapproving the proposed acquisition, taking into consideration certain factors, including the financial and managerial resources of the acquirer and the competitive effects of the acquisition.
Since adoption of ASU 2022-02, the Company has ceased to recognize or measure for new TDRs but those existing at January 1, 2023 remain until settled. 12 Non-Performing and Restructured Loans (excluding PCD). The table below sets forth the amounts and categories of our non-performing assets at the dates indicated.
Since adoption of ASU 2022-02, the Company has ceased to recognize or measure for new TDRs but those existing at January 1, 2023 remain until settled. 13 Non-Performing and Restructured Loans (excluding PCD). The table below sets forth the amounts and categories of our non-performing assets at the dates indicated.
In evaluating a proposed commercial real estate loan, we emphasize the ratio of the property’s projected net cash flow to the loan’s debt service requirement (generally requiring a minimum ratio of 125%, computed after deduction for a vacancy factor and property expenses we deem appropriate). Personal guarantees of the principals are typically obtained.
In evaluating a proposed commercial real estate loan, we emphasize the ratio of the property’s projected net cash flows to the loan’s debt service requirement (generally requiring a minimum ratio of 125%, computed after deduction for a vacancy factor and property expenses we deem appropriate). Personal guarantees of the principals are typically obtained.
At December 31, 2024 and 2023, the Company had no real estate owned acquired through foreclosure. Potential Problem Loans and Classification of Assets . Our policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets.
At December 31, 2025 and 2024, the Company had no real estate owned acquired through foreclosure. Potential Problem Loans and Classification of Assets . Our policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets.
At December 31, 2024, the total federal pre-base year bad debt reserve of Northfield Bank was approximately $5.9 million. Corporate Dividends-Received Deduction . Northfield Bancorp may exclude from its federal taxable income 100% of dividends received from Northfield Bank as a wholly-owned subsidiary by filing consolidated tax returns.
At December 31, 2025, the total federal pre-base year bad debt reserve of Northfield Bank was approximately $5.9 million. Corporate Dividends-Received Deduction . Northfield Bancorp may exclude from its federal taxable income 100% of dividends received from Northfield Bank as a wholly-owned subsidiary by filing consolidated tax returns.
The following tables summarize the scheduled repayments of our loan portfolio and weighted average contractual rate by loan type at December 31, 2024. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in the year ending December 31, 2025.
The following tables summarize the scheduled repayments of our loan portfolio and weighted average contractual rate by loan type at December 31, 2025. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in the year ending December 31, 2026.
The composition and maturities of the investment securities portfolio at December 31, 2024, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur.
The composition and maturities of the investment securities portfolio at December 31, 2025, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the effect of scheduled principal repayments, prepayments, or early redemptions that may occur.
Bureau of Labor Statistics: Unemployment Rate at December 31, 2024 2023 2022 2021 2020 Hunterdon County, NJ 3.2 % 3.5 % 2.3 % 3.5 % 5.5 % Middlesex County, NJ 3.9 4.1 2.7 4.3 6.6 Mercer County, NJ 3.7 3.7 2.5 3.8 6.0 Union County, NJ 4.5 4.7 3.3 5.3 7.8 Richmond County, NY 4.6 4.6 5.0 7.1 9.4 Kings County, NY 5.5 5.4 5.5 8.1 11.3 National Average 4.1 3.7 3.5 3.9 6.7 The following table sets forth median household income at December 31, 2024 and 2023, for the communities we serve and the national average, as published by the U.S.
Bureau of Labor Statistics: Unemployment Rate at December 31, 2025 2024 2023 2022 2021 Hunterdon County, NJ 3.6 % 3.2 % 3.5 % 2.3 % 3.5 % Middlesex County, NJ 4.4 3.9 4.1 2.7 4.3 Mercer County, NJ 4.5 3.7 3.7 2.5 3.8 Union County, NJ 4.7 4.5 4.7 3.3 5.3 Richmond County, NY 4.8 4.6 4.6 5.0 7.1 Kings County, NY 5.5 5.5 5.4 5.5 8.1 National Average 4.4 4.1 3.7 3.5 3.9 The following table sets forth median household income at December 31, 2025 and 2024, for the communities we serve and the national average, as published by the U.S.
Certain Northfield Bank officers, at levels beginning with vice president, have individual lending authority that is approved by the Board of Directors. 4 Loan Portfolio Composition . The following table sets forth the composition of our loan portfolio, by type of loan, at the dates indicated.
Certain Northfield Bank officers, at levels beginning with vice president, have individual lending authority that is approved by the Board of Directors. 5 Loan Portfolio Composition . The following table sets forth the composition of our loan portfolio, by type of loan, at the dates indicated.
Periodically, we measure employee engagement and satisfaction, and through efforts of our employee engagement team, develop action plans for continued improvement. We have introduced virtual town hall meetings for all employees, opening the lines of communications and answering employee questions and concerns.
Periodically, we measure employee engagement and satisfaction, and through efforts of our employee engagement and workplace culture team, we develop action plans for continued improvement. We have introduced virtual town hall meetings for all employees, opening the lines of communications and answering employee questions and concerns.
At December 31, 2024, all participation loans were performing in accordance with their terms. Loan Approval Procedures and Authority . Our lending activities follow written, non-discriminatory, underwriting standards approved by our Board of Directors.
At December 31, 2025, all participation loans were performing in accordance with their terms. Loan Approval Procedures and Authority . Our lending activities follow written, non-discriminatory, underwriting standards approved by our Board of Directors.
Northfield Bancorp may invest in equity securities of other financial institutions, as well as preferred stock, up to certain limitations. As of December 31, 2024, we did not hold any asset-backed securities other than mortgage-backed securities.
Northfield Bancorp may invest in equity securities of other financial institutions, as well as preferred stock, up to certain limitations. As of December 31, 2025, we did not hold any asset-backed securities other than mortgage-backed securities.
Consolidated regulatory capital requirements identical to those applicable to the subsidiary depository institutions (including the community bank leverage ratio alternative) also apply to savings and loan holding companies. Northfield Bancorp exceeded the FRB’s consolidated capital requirements as of December 31, 2024. 28 Federal law applies the FRB's “source of strength” doctrine to savings and loan holding companies.
Consolidated regulatory capital requirements identical to those applicable to the subsidiary depository institutions (including the community bank leverage ratio alternative) also apply to savings and loan holding companies. Northfield Bancorp exceeded the FRB’s consolidated capital requirements as of December 31, 2025. Federal law applies the FRB's “source of strength” doctrine to savings and loan holding companies.
At December 31, 2024 2023 2022 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in thousands) Debt securities available-for-sale: U.S. Treasuries $ — $ — $ 44,364 $ 44,379 $ — $ — U.S.
At December 31, 2025 2024 2023 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in thousands) Debt securities available-for-sale: U.S. Treasuries $ — $ — $ — $ — $ 44,364 $ 44,379 U.S.
A federal savings association that is a subsidiary of a holding company, which is the case with Northfield Bank, must file a notice with the FRB at least 30 days before the Board of Directors declares any dividend and receive FRB non-objection to the payment of the dividend.
A federal savings association that is a subsidiary of a holding company, as in the case with Northfield Bank, must file a notice with the FRB at least 30 days before the Board of Directors declares any dividend and receive FRB non-objection to the payment of the dividend.
Due to competitor considerations, as is customary in our marketplace, we typically do not obtain personal guarantees of the principals on multifamily real estate loans, except when warranted. In 2019, the New York State legislature passed the Housing Stability and Tenant Protection Act, impacting approximately 1,000,000 rent-regulated apartment units.
Due to competitor considerations, as is customary in our marketplace, we typically do not obtain personal guarantees of the principals on multifamily real estate loans, except when warranted. In 2019, the New York State legislature passed the Housing Stability and Tenant Protection Act, impacting approximately one million rent-regulated apartment units.
Qualified Thrift Lender Test As a federally chartered savings bank, Northfield Bank is required to satisfy a qualified thrift lender (“QTL”) test, under which we either must qualify as a “domestic building and loan” association as defined by the Internal Revenue Code or maintain at least 65% of our “portfolio assets” in “qualified thrift investments.” “Qualified thrift investments” consist primarily of residential mortgages and related investments, including mortgage-backed and related securities.
Qualified Thrift Lender Test As a federally chartered savings bank, Northfield Bank is required to satisfy a qualified thrift lender (“QTL”) test, under which Northfield Bank either must qualify as a “domestic building and loan” association as defined by the Internal Revenue Code or maintain at least 65% of its “portfolio assets” in “qualified thrift investments.” “Qualified thrift investments” consist primarily of residential mortgage loans and related investments, including mortgage-backed and related securities.
The term “affiliate” generally includes any company that controls or is under common control with a federal savings association, including Northfield Bancorp, and the non-savings association subsidiaries of that savings association. Certain other subsidiaries of the federal savings association itself are not considered affiliates.
The term “affiliate” generally includes any company that controls or is under common control with a federal savings association, including Northfield Bancorp, and the savings association subsidiaries of that savings association. Certain other subsidiaries of the federal savings association, however, are not considered affiliates.
At December 31, 2024, our largest loan of this type (excluding purchased loan pools, discussed below) had a principal balance of $5.1 million and was collateralized by 42 condominiums within a complex in Union County, New Jersey. The loan was performing in accordance with its original contractual terms.
At December 31, 2025, our largest loan of this type (excluding purchased loan pools, discussed below) had a principal balance of $5.0 million and was collateralized by 42 condominiums within a complex in Union County, New Jersey. The loan was performing in accordance with its original contractual terms.
The buildings covered by Local Law 97 will be required to file a report with the Department of Buildings by May 1, 2025 detailing their annual greenhouse gas emissions and then by May 1 of every year thereafter.
The buildings covered by Local Law 97 were required to file a report with the Department of Buildings by May 1, 2025 detailing their annual greenhouse gas emissions and then by May 1 of every year thereafter.
This loan was performing in accordance with its original contractual terms. At December 31, 2024, our largest outstanding home equity loan was $1.7 million and was performing in accordance with its original contractual terms. We offer home equity loans and home equity lines of credit that are secured by the borrower’s primary residence or second home.
This loan was performing in accordance with its original contractual terms. At December 31, 2025, our largest outstanding home equity loan was $1.6 million and was performing in accordance with its original contractual terms. We offer home equity loans and home equity lines of credit that are secured by the borrower’s primary residence or second home.
At December 31, 2024, our largest multifamily real estate loan had a principal balance of $29.8 million, was secured by a garden-style apartment complex located in Essex County, New Jersey, and was performing in accordance with its original contractual terms.
At December 31, 2025, our largest multifamily real estate loan had a principal balance of $29.0 million, was secured by a garden-style apartment complex located in Essex County, New Jersey, and was performing in accordance with its original contractual terms.
At December 31, 2024, the average home equity loan and line of credit balance was approximately $70,000 although we originate these types of loans in amounts substantially greater than this average. At December 31, 2024, our largest home equity line of credit had an outstanding balance of approximately $2.0 million.
At December 31, 2025, the average home equity loan and line of credit balance was approximately $77,000 although we originate these types of loans in amounts substantially greater than this average. At December 31, 2025, our largest home equity line of credit had an outstanding balance of approximately $2.0 million.
At December 31, 2024, PCD loans consisted of approximately 9% one-to-four family residential loans, 25% commercial real estate loans, 55% commercial and industrial loans, and 11% in home equity loans. At December 31, 2023, PCD loans consisted of approximately 7% one-to-four family residential loans, 25% commercial real estate loans, 57% commercial and industrial loans, and 11% in home equity loans.
At December 31, 2024, PCD loans consisted of approximately 9% one-to-four family residential loans, 25% commercial real estate loans, 55% commercial and industrial loans, and 11% in home equity loans.
(2) Calculated based on average total loans. (3) Excludes non-performing loans held-for-sale. (4) Includes PCD and acquired loans held-for-investment (and related allowance for credit losses). At December 31, 2024 and 2023, the allowance for credit losses related to PCD loans was $2.9 million and $3.1 million, respectively.
(2) Calculated based on average total loans. (3) Excludes non-performing loans held-for-sale. (4) Includes PCD and acquired loans held-for-investment (and related allowance for credit losses). At December 31, 2025 and 2024, the allowance for credit losses related to PCD loans was $2.6 million and $2.9 million, respectively.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: • general economic conditions, internationally, nationally, or in our market areas, including inflationary and/or recessionary pressures, employment prospects, fluctuations in real estate values, military conflict, geopolitical risks, and downgrades of the U.S. credit rating; • competition among depository and other financial institutions, including with respect to fees and interest rates; • inflation and changes in the interest rate environment that reduce our margins and yields, or reduce the market value of our assets including the fair value of financial instruments or our ability to originate loans; • adverse changes in the securities or credit markets; • changes in laws, tax policies, or government regulations or policies affecting financial institutions, changes in regulatory fees, assessments, and capital requirements; • the imposition of tariffs or other domestic or international governmental policies; • changes in the quality and/or composition of our loan and securities portfolios, changes in prepayment speeds, charge-offs and changes in the estimates or methodology used to determine our allowance for credit losses; • changes in the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; • our ability to manage our liquidity, including unanticipated changes in our liquidity position, changes in our access to or the cost of funding and our ability to secure alternate funding sources; • our ability to enter new markets successfully and capitalize on growth opportunities; • our ability to successfully integrate acquired entities; • changes in consumer demand, spending, borrowing and savings habits; • changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (the “FASB”), the Securities and Exchange Commission (the “SEC”), or the Public Company Accounting Oversight Board; • cyber-attacks and fraud risks, computer viruses and other technological risks that may breach the security of our website or other systems (including critical third-parties) to obtain unauthorized access to confidential information and destroy data or disable our systems; • technological changes that may be more difficult or expensive to implement than expected; • changes in our organization, compensation, and benefit plans; • our ability to attract and/or retain key employees; • changes in the value of our goodwill or other intangible assets; • changes in the level of government support for housing finance; • changes in monetary or fiscal policies of the U.S.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: • general economic conditions, internationally, nationally, or in our market areas, including inflationary pressures and/or recessionary conditions, employment prospects, supply chain issues, fluctuations in residential and commercial real estate values and market conditions, military conflict, geopolitical risks, and downgrades of the U.S. credit rating; • competition among depository and other financial institutions, including with respect to fees and interest rates; • changes in the interest rate environment that reduce our margins and yields, or reduce the market value of our assets, including the fair value of financial instruments, or reduce our ability to originate loans; • adverse changes in the securities or credit markets, and changes in investor sentiment; • changes in laws, tax policies, government regulations or policies affecting financial institutions; • changes in regulatory fees, assessments, and capital requirements; • the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; • changes in the quality and/or composition of our loan and securities portfolios, changes in prepayment speeds, charge-offs and in the estimates or methodology used to determine our allowance for credit losses; • changes in the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; • our ability to manage our liquidity, including unanticipated changes in our liquidity position, changes in our access to or the cost of funding, and our ability to secure alternate funding sources; • our ability to enter new markets successfully and capitalize on growth opportunities; • our ability to successfully integrate acquired entities; • changes in consumer demand, spending, borrowing and savings habits; • changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (the “FASB”), the Securities and Exchange Commission (the “SEC”), or the Public Company Accounting Oversight Board; • cyber-attacks and fraud risks, computer viruses and other technological risks that may breach the security of our website or other systems (including critical third-parties) to obtain unauthorized access to confidential information and destroy data or disable our systems; • the failure to maintain current technologies and to successfully implement future technological enhancements; • changes in investor sentiment with respect to financial institutions and their holding companies; • changes in our organization, compensation structure, and benefit plans; • our ability to attract and/or retain key employees; • changes in the value of our goodwill or other intangible assets; • changes in the level of government support for housing finance; • changes in monetary or fiscal policies of the U.S.
As of December 31, 2024, the average balance of one-to-four family residential real estate loans was approximately $476,000, although we have originated these types of loan in amounts substantially greater than this average.
As of December 31, 2025, the average balance of one-to-four family residential real estate loans was approximately $541,000, although we have originated these types of loan in amounts substantially greater than this average.
Starting in 2025, an owner of a covered building who submits a report indicating that their building exceeded its annual building emissions limit will be liable for a civil penalty.
An owner of a covered building who submits a report indicating that their building exceeded its annual building emissions limit will be liable for a civil penalty.
At December 31, 2024, our largest commercial and industrial loan had a principal balance of $8.7 million, and was performing in accordance with its original contractual terms. Our term commercial and industrial loans typically amortize over five to seven years with interest rates that are primarily indexed to various FHLB rates, and to a lesser extent, the Prime Rate.
At December 31, 2025, our largest commercial and industrial loan had a principal balance of $10.0 million, and was performing in accordance with its original contractual terms. Our term commercial and industrial loans typically amortize over five to seven years with interest rates that are primarily indexed to various FHLB rates, and to a lesser extent, the Prime Rate.
However, since 2014 we have purchased pools of one-to-four family residential real estate loans which included interest-only mortgage loans and had $13.4 million of such loans at December 31, 2024.
However, since 2014 we have purchased pools of one-to-four family residential real estate loans which included interest-only mortgage loans and had $13.5 million of such loans at December 31, 2025.
We also originate one-to-four family residential real estate loans (non-owner occupied investment properties), construction and land loans, and home equity loans and lines of credit. Loan Originations, Purchases and Sales, Participations, and Servicing. All loans we originate are underwritten pursuant to our policies and procedures or are approved as exceptions to our policies and procedures.
We also originate one-to-four family residential real estate loans, construction and land loans, and home equity loans and lines of credit. Loan Originations, Purchases and Sales, Participations, and Servicing. All loans we originate are underwritten pursuant to our policies and procedures or are approved as exceptions to our policies and procedures.
Multifamily Real Estate Loans . Loans secured by multifamily properties totaled approximately $2.60 billion, or 64.6% of our total loan portfolio, at December 31, 2024. We include in this category properties having more than four residential units and a business or businesses where the majority of space is utilized for residential purposes, which we refer to as mixed-use.
Multifamily Real Estate Loans . Loans secured by multifamily properties totaled approximately $2.36 billion, or 61.2% of our total loan portfolio, at December 31, 2025. We include in this category properties having more than four residential units and a business or businesses where the majority of space is utilized for residential purposes, which we refer to as mixed-use.
If an institution fails to submit or implement an acceptable plan, the appropriate federal banking agency may issue an enforceable order requiring correction of the deficiencies.
If an institution fails to submit or implement an acceptable plan, the appropriate federal banking agency may issue an enforceable order requiring correction action.
For purposes of the regulations, capital distributions generally include cash dividends and other transactions charged to the capital account of a federal savings association.
For purposes of these regulations, capital distributions generally include cash dividends and other transactions that are charged to the capital account of a federal savings association.
As of December 31, 2024, 2023, and 2022, we also had a trading portfolio with a fair value of $13.9 million, $12.5 million and $10.8 million, respectively, consisting of mutual funds quoted in actively traded markets. These securities are utilized to fund non-qualified deferred compensation obligations.
As of December 31, 2025, 2024, and 2023, we also had a trading portfolio with a fair value of $15.2 million, $13.9 million and $12.5 million, respectively, consisting of mutual funds quoted in actively traded markets. These securities are utilized to fund non-qualified deferred compensation obligations.
Weighted average yield is based on amortized cost. 19 One Year or Less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield (Dollars in thousands) Securities available-for-sale: U.S.
One Year or Less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Fair Value Weighted Average Yield (Dollars in thousands) Securities available-for-sale: U.S.
Advances from the FHLBNY are secured by our investment in the common stock of the FHLBNY as well as by pledged mortgage-backed securities and loans. 21 Subordinated Debt. On June 17, 2022, the Company issued $62.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “Notes”) to certain institutional investors.
Advances from the FHLBNY are secured by our investment in the common stock of the FHLBNY as well as by pledged mortgage-backed securities and loans. Subordinated Debt. On June 17, 2022, the Company issued $62.0 million in aggregate principal amount of fixed-to-floating subordinated notes (the “Notes”) to certain institutional investors. The Notes mature on June 30, 2032, unless redeemed earlier.
At December 31, 2024, we had 1,144 multifamily real estate loans, with an average loan balance of approximately $2.3 million, although there are a large number of loans with balances substantially greater than this average.
At December 31, 2025, we had 1,075 multifamily real estate loans, with an average loan balance of approximately $2.2 million, although there are a large number of loans with balances substantially greater than this average.
In addition, municipal deposits which primarily consist of funds from local government entities domiciled in New Jersey, and are a significant source of funds, totaled $859.3 million, or 20.8% of our total deposits at December 31, 2024. At December 31, 2023, municipal deposits totaled $768.6 million, or 19.8% of our total deposits.
In addition, municipal deposits which primarily consist of funds from local government entities domiciled in New Jersey, and are a significant source of funds, totaled $988.3 million, or 24.6% of our total deposits at December 31, 2025. At December 31, 2024, municipal deposits totaled $859.3 million, or 20.8% of our total deposits.
Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, order or condition imposed in writing.
Future insurance assessments cannot be predicted. 26 Insurance of deposits may be terminated by the FDIC upon a finding that an institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by FDIC in writing.
As of June 30, 2024 (the latest date for which information is publicly available), we ranked sixth in deposit market share out of 15 institutions for Federal Deposit Insurance Corporation (the “FDIC”) insured institutions in Staten Island, New York with a 9.74% market share.
As of June 30, 2025 (the latest date for which information is publicly available), we ranked sixth in deposit market share out of 16 institutions for Federal Deposit Insurance Corporation (the “FDIC”) insured institutions in Staten Island, New York with a 9.64% market share.
“Portfolio assets” generally mean total assets less specified liquid assets up to 20% of total assets, goodwill, and other intangible assets and the value of property used to conduct business. A federal savings bank that fails the QTL test must operate under specified restrictions.
“Portfolio assets” generally are defined as total assets less specified liquid assets up to 20% of total assets, goodwill, and other intangible assets and the value of property used to conduct business. A federal savings bank that fails the QTL test must operate under statutorily prescribed restrictions.
The FHLB System provides a central credit facility primarily for member institutions. Members of the FHLB are required to acquire and hold a specified amount of shares of FHLB capital stock. Northfield Bank was in compliance with this requirement at December 31, 2024.
The FHLB System provides a central credit facility primarily for member institutions. Members of the FHLB are required to purchase and hold a specified amount of shares of FHLB capital stock. As of December 31, 2025, Northfield Bank was in compliance with this requirement.
On June 28, 2024, the State of New Jersey enacted legislation that imposes a temporary 2.5% surtax, named the “Corporate Transit Fee”, on certain corporate taxpayers for tax years beginning January 1, 2024 through December 31, 2028. Delaware State Taxation.
On June 28, 2024, the State of New Jersey enacted legislation that imposes a temporary 2.5% surtax, named the “Corporate Transit Fee”, on certain corporate taxpayers for tax years beginning January 1, 2024 through December 31, 2028. Northfield Bancorp is under audit in New Jersey for tax years 2021 through 2024. Delaware State Taxation.
As of that date, we ranked 17th in deposit market share out of 39 institutions with a 0.56% deposit market share in Brooklyn, New York, and we ranked 12th in deposit market share out of 50 financial institutions with a deposit market share of 1.76% in Hunterdon, Mercer, Middlesex and Union counties in New Jersey.
As of that date, we ranked 17th in deposit market share out of 40 institutions with a 0.65% deposit market share in Brooklyn, New York, and we ranked 12th in deposit market share out of 50 financial institutions with a deposit market share of 1.75% in Hunterdon, Mercer, Middlesex and Union counties in New Jersey.
At December 31, 2024, our commercial real estate loan portfolio consisted of 663 loans with an average loan balance of approximately $1.3 million, although there are a large number of loans with balances substantially greater than this average.
At December 31, 2025, our commercial real estate loan portfolio consisted of 642 loans with an average loan balance of approximately $1.4 million, although there are a large number of loans with balances substantially greater than this average.
Control, as defined under the Change in Bank Control Act and its implementing regulations, means the power, directly or indirectly, to direct the management or policies of an insured depository institution, or the ownership, control of or the power to vote 25% or more of any class of voting stock.
Other statutory factors may also be considered. Control, as defined under the Change in Bank Control Act and its implementing regulations, means the power, directly or indirectly, to direct the management or policies of an insured depository institution, or the ownership, control of or the power to vote 25% or more of any class of voting stock.
Maximum loan amounts within this loan segment are limited to the lesser of a percentage of a business’s revenue or $100,000 (previously $250,000) and require the full personal guarantees of the business owners. Unsecured small business loans totaled $28.9 million and $37.4 million at December 31, 2024 and 2023, respectively.
Maximum loan amounts within this loan segment are limited to the lesser of a percentage of a business’s revenue or $100,000 and require the full personal guarantees of the business owners. Unsecured small business loans totaled $20.6 million and $28.9 million at December 31, 2025 and 2024, respectively.
The Bank also underwrites SBA guaranteed loans and guaranteed or assisted loans through various state, county and municipal programs. One-to-Four Family Residential Real Estate Loans. At December 31, 2024, we had 305 one-to-four family residential real estate loans outstanding with an aggregate balance of $150.2 million, or 3.7% of our total loan portfolio.
The Bank also underwrites SBA guaranteed loans and guaranteed or assisted loans through various state, county and municipal programs. 11 One-to-Four Family Residential Real Estate Loans. At December 31, 2025, we had 305 one-to-four family residential real estate loans outstanding with an aggregate balance of $165.1 million, or 4.3% of our total loan portfolio.
As of December 31, 2024, we had 844 commercial and industrial loans with an average loan balance of approximately $194,000, although we originate these types of loans in amounts substantially greater than this average.
As of December 31, 2025, we had 811 commercial and industrial loans with an average loan balance of approximately $205,000, although we originate these types of loans in amounts substantially greater than this average.
Under these laws and regulations, Northfield Bank may originate mortgage loans secured by residential and commercial real estate, commercial business loans, and consumer loans, and it may invest in certain types of debt securities and certain other assets.
Under these laws and regulations, Northfield Bank is authorized to originate mortgage loans secured by residential and commercial real estate, commercial business loans, and consumer loans, and to invest in certain types of debt securities and other permissible assets.
At December 31, 2024, our largest commercial real estate loan had a principal balance of $89.1 million (net active principal balance of $29.7 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.
At December 31, 2025, our largest commercial real estate loan had a principal balance of $86.4 million (net active principal balance of $28.8 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.
We offer a variety of deposit accounts to businesses, consumers and municipalities with a range of interest rates and terms. We accept brokered deposits when it is deemed cost effective. At December 31, 2024 and 2023, we had brokered deposits totaling $263.4 million and $100.0 million, respectively.
We offer a variety of deposit accounts to businesses, consumers and municipalities with a range of interest rates and terms. We purchase brokered deposits when it is deemed cost effective. At December 31, 2025 and 2024, we had brokered deposits totaling $40.5 million and $263.4 million, respectively.
The regulations provide that a capital restoration plan must be filed with the OCC within 45 days of the date a federal savings association receives notice that it is “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized.” Any holding company for the federal savings association required to submit a capital restoration plan must guarantee the lesser of an amount equal to 5.0% of the savings association’s assets at the time it was notified or deemed to be undercapitalized by the OCC, or the amount necessary to restore the savings association to adequately capitalized status.
An institution is deemed to be “critically undercapitalized” if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2.0%. 24 The regulations provide that a capital restoration plan must be filed with the OCC within 45 days of the date a federal savings association receives notice that it is “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized.” Any holding company for the federal savings association required to submit a capital restoration plan must guarantee the lesser of an amount equal to 5.0% of the savings association’s assets at the time it was notified or deemed to be undercapitalized by the OCC, or the amount necessary to restore the savings association to adequately capitalized status.
At December 31, 2022, PCD loans consisted of approximately 9% one-to-four family residential loans, 28% commercial real estate loans, 53% commercial and industrial loans, and 10% in home equity loans. Non-Performing and Problem Assets When a loan is between 10 to 15 days delinquent, we generally send the borrower a late charge notice.
At December 31, 2023, PCD loans consisted of approximately 7% one-to-four family residential loans, 25% commercial real estate loans, 57% commercial and industrial loans, and 11% in home equity loans. 12 Non-Performing and Problem Assets When a loan is between 10 to 15 days delinquent, we generally send the borrower a late charge notice.
We invest in mortgage-backed securities to achieve positive interest rate spreads with minimal administrative expense, and to lower our credit risk as a result of the guarantees provided as well as to provide us liquidity to fund loan originations and deposit outflows. Mortgage-backed securities are securities sold in the secondary market that are collateralized by pools of mortgages.
We invest in mortgage-backed securities to achieve positive interest rate spreads with minimal administrative expense, and to lower our credit risk as a result of the guarantees provided as well as to provide us liquidity to fund loan originations and deposit outflows.
At December 31, 2024, we had $61.0 million of loan participations that we purchased (where we are not the primary lender). Additionally, there were $103.2 million of loan participations that we sold (where we are the primary lender). All loan participations are secured by real estate and adhere to our loan policies.
At December 31, 2025, we had $68.8 million of loan participations that we purchased (where we are not the primary lender). Additionally, there were $100.2 million of loan participations that we sold (where we are the primary lender). All loan participations are secured by real estate and adhere to our loan policies.
Community Reinvestment Act Federal savings associations have a responsibility under the Community Reinvestment Act and its implementing regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods.
Community Reinvestment Act Federal savings associations have a responsibility under the Community Reinvestment Act ("CRA") and its implementing regulations to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices.
We also offer interest rate swap contracts to qualified commercial borrowers. From time-to-time, we may sell or purchase participation interests in individual loans (in addition to loans we acquire in assisted transactions, mergers or acquisitions, and pool purchases). We underwrite our participation interest in the loans that we purchase according to our underwriting criteria and procedures.
From time-to-time, we may sell or purchase participation interests in individual loans (in addition to loans we acquire in assisted transactions, mergers or acquisitions, and pool purchases). We underwrite our participation interest in the loans that we purchase according to our underwriting criteria and procedures.
Extensions of credit to executive officers are subject to additional restrictions on the types and amounts of loans that may be made. At December 31, 2024, Northfield Bank was in compliance with these laws and regulations.
Extensions of credit to executive officers are subject to additional restrictions on the types and amounts of loans that may be made. At December 31, 2025, Northfield Bank was in compliance with the applicable laws and regulations governing transactions with affiliates and extensions of credit to insiders.
At December 31, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 24.9% were past due 90 days or more. At December 31, 2023, 2.9% of PCD loans were past due 30 to 89 days, and 27.1% were past due 90 days or more.
At December 31, 2025, 4.0% of PCD loans were past due 30 to 89 days, and 23.2% were past due 90 days or more. At December 31, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 24.9% were past due 90 days or more.
The federal banking agencies adopted Interagency Guidelines Prescribing Standards for Safety and Soundness to implement the safety and soundness standards required under federal law. The guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired.
The federal banking agencies adopted the Interagency Guidelines Prescribing Standards for Safety and Soundness to implement the safety and soundness standards required under federal law. These guidelines establish safety and soundness standards used by the federal banking agencies to identify and address problems at insured depository institutions before capital becomes impaired.
At December 31, 2023, classified assets, excluding loans on non-accrual status, consisted of substandard assets of $29.3 million and no doubtful or loss assets. At December 31, 2023, we also had $14.9 million of assets designated as special mention.
At December 31, 2025, classified assets, excluding loans on non-accrual status, consisted of substandard assets of $24.9 million and no doubtful or loss assets. At December 31, 2025, we also had $18.6 million of assets designated as special mention.
At December 31, 2024, the Company had the ability to obtain additional funding from the FHLBNY and Federal Reserve Bank discount window of approximately $1.62 billion, utilizing unencumbered securities of $683.4 million and multifamily loans of $934.8 million. Repurchase agreements are primarily secured by mortgage-backed securities.
At December 31, 2025, the Company had the ability to obtain additional funding from the FHLBNY and Federal Reserve Bank discount window of approximately $1.83 billion, utilizing unencumbered securities of $727.1 million and loans of $1.10 billion. Repurchase agreements are primarily secured by mortgage-backed securities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur heavy reliance on information technology systems (both internal and external) exposes us to operational risks which include the risk of malfeasance by employees or persons outside of our organization, errors relating to transaction processing and technology, systems failures or interruptions, failures to properly implement systems upgrades, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery.
Biggest changeOur heavy reliance on information technology systems (both internal and external) exposes us to operational risks which include the risk of malfeasance by employees or persons outside of our organization, errors relating to transaction processing and technology, systems failures or interruptions, failures to properly implement systems upgrades, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery. 41 Information security risks have generally increased in recent years because of the proliferation of new technologies, the use of the Internet and telecommunications technologies to conduct financial and other transactions, the increased sophistication and activities of perpetrators of cyber-attacks and mobile phishing and an increase in our remote workforce.
These reasons, historical issues at the largest mortgage loan servicers, and the legal and regulatory responses, have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders. This may result in a material adverse effect on collateral values and our ability to minimize our losses. 32 We are subject to environmental liability risk associated with lending activities.
These reasons, historical issues at the largest mortgage loan servicers, and the legal and regulatory responses, have impacted the foreclosure process and completion time of foreclosures for residential mortgage lenders. This may result in a material adverse effect on collateral values and our ability to minimize our losses. We are subject to environmental liability risk associated with lending activities.
Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. Such actions could have a material adverse effect on our business, financial condition and results of operations. The FRB may require us to commit capital resources to support Northfield Bank.
Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation. Such actions could have a material adverse effect on our business, financial condition and results of operations. 34 The FRB may require us to commit capital resources to support Northfield Bank.
As information security risks and cyber threats continue to evolve, we may be required to expend additional resources to continue to enhance our information security measures and/or to investigate and remediate any information security vulnerabilities. 40 Because the nature of the financial services business involves a high volume of transactions, we face significant operational risks, including fraud and other financial crimes.
As information security risks and cyber threats continue to evolve, we may be required to expend additional resources to continue to enhance our information security measures and/or to investigate and remediate any information security vulnerabilities. Because the nature of the financial services business involves a high volume of transactions, we face significant operational risks, including fraud and other financial crimes.
As a result of uncertain political, credit and financial market conditions, including the potential consequences of the federal government defaulting on its obligations for a period of time due to federal debt ceiling limitations or other unresolved political issues, investments in financial instruments issued or guaranteed by the federal government pose credit default and liquidity risks.
As a result of any uncertain political, credit and financial market conditions, including the potential consequences of the federal government defaulting on its obligations for a period of time due to federal debt ceiling limitations or other unresolved political issues, investments in financial instruments issued or guaranteed by the federal government pose credit default and liquidity risks.
Further, unless and until U.S. political, credit and financial market conditions have been sufficiently resolved or stabilized, it may increase our future borrowing costs. 37 Risks Related to Competitive Matters Competition within our market areas may limit our growth and profitability. We face intense competition in making loans and attracting deposits.
Further, unless and until U.S. political, credit and financial market conditions have been sufficiently resolved or stabilized, it may increase our future borrowing costs. Risks Related to Competitive Matters Competition within our market areas may limit our growth and profitability. We face intense competition in making loans and attracting deposits.
Our competitors also may price loan and deposit products aggressively when they enter into new lines of business or new market areas. We expect competition to increase in the future as a result of legislative, regulatory, and technological changes and the continuing trend of consolidation in the financial services industry.
Our competitors also may price and structure loan and deposit products aggressively when they enter into new lines of business or new market areas. We expect competition to increase in the future as a result of legislative, regulatory, and technological changes and the continuing trend of consolidation in the financial services industry.
Restrictions on Northfield Bank’s rights as creditor could result in increased credit losses on our loans and mortgage-backed securities, or increased expense in pursuing our remedies as a creditor. 33 Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
Restrictions on Northfield Bank’s rights as creditor could result in increased credit losses on our loans and mortgage-backed securities, or increased expense in pursuing our remedies as a creditor. Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
Failure to comply with these and other regulations, and supervisory expectations related thereto, may result in fines, penalties, lawsuits, regulatory sanctions, reputation damage, or restrictions on our business. Federal Deposit Insurance Corporation ( “ FDIC ”) deposit insurance could increase in the future .
Failure to comply with these and other regulations, and supervisory expectations related thereto, may result in fines, penalties, lawsuits, regulatory sanctions, reputation damage, or restrictions on our business. 36 Federal Deposit Insurance Corporation ( “ FDIC ”) deposit insurance could increase in the future .
Our continued ability to compete effectively depends on our ability to attract new employees and to retain and motivate our existing employees. 39 Risks associated with system failures, interruptions, or breaches of security could affect our earnings negatively. Information technology systems are critical to our business.
Our continued ability to compete effectively depends on our ability to attract new employees and to retain and motivate our existing employees. Risks associated with system failures, interruptions, or breaches of security could affect our earnings negatively. Information technology systems are critical to our business.
We continue to analyze the impact of this regulation on our investment portfolio, and whether any changes are required to our investment strategies that could negatively affect our earnings. We may be adversely affected by recent changes in tax laws.
We continue to analyze the impact of this regulation on our investment portfolio, and whether any changes are required to our investment strategies that could negatively affect our earnings. We may be adversely affected by changes in tax laws.
Our Chief Information Security Officer provides the CIT Committee with periodic reports on our cybersecurity risks and any material cybersecurity incidents. The CIT Committee retains an independent external cybersecurity consultant who regularly attends all CIT Committee meetings and reports directly to the CIT Committee Chair.
Our Chief Information Security Officer provides the CIT Committee with periodic reports on our cybersecurity risks and any material cybersecurity incidents. The CIT Committee retains an independent external cybersecurity consultant who regularly attends CIT Committee meetings and reports directly to the CIT Committee Chair.
Any such losses could materially and adversely affect our results of operations. 41 Risks Related to Environmental Matters Our business, financial condition, and results of operations could be adversely affected by natural disasters, health epidemics, and other catastrophic events.
Any such losses could materially and adversely affect our results of operations. Risks Related to Environmental Matters Our business, financial condition, and results of operations could be adversely affected by natural disasters, health epidemics, and other catastrophic events.
If a significant amount of these deposits were withdrawn within a short period of time, it could have a negative impact on our short-term liquidity or if the cost to replace such funds was more expensive, it could have an adverse impact on our earnings. 42 Changes in the valuation of our securities portfolio could reduce net income and lower our capital levels.
If a significant amount of these deposits were withdrawn within a short period of time, it could have a negative impact on our short-term liquidity or if the cost to replace such funds was more expensive, it could have an adverse impact on our earnings. 44 Changes in the valuation of our securities portfolio could reduce net income and lower our capital levels.
In addition, competition for senior executives and skilled personnel in the financial services and banking industry is intense, which means the loss of key personnel could result in increased recruiting and hiring expenses, which could cause a decrease in our net income.
In addition, competition for senior executives and skilled personnel in the financial services and banking industry is significant, which means the loss of key personnel could result in increased recruiting and hiring expenses, which could cause a decrease in our net income.
If our assumptions are incorrect, if delinquencies, non-accrual or non-performing loans increase, or macroeconomic conditions are worse than anticipated, our allowance for credit losses may not be sufficient to cover currently expected losses in our loan portfolio, which would require additions to our allowance. Material additions to our allowance would materially decrease our net income.
If our assumptions are incorrect, if delinquencies, non-accrual or non-performing loans increase, or macroeconomic conditions are worse than anticipated, our allowance for credit losses may not be sufficient to cover currently expected losses in our loan portfolio, which would require additions to our allowance.
A significant decline in general economic conditions, caused by inflation, tariffs or other domestic or international governmental policies, changes in interest rates, recession, acts of terrorism, an outbreak of hostilities or other international or domestic events, tax reform, unemployment, an epidemic or pandemic or other factors beyond our control, could result in the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations: • demand for our products and services may decline; • loan delinquencies, problem assets, and foreclosures may increase; 36 • collateral for loans, especially real estate, may decline in value, (including due to the inability to complete construction projects due to disruption in the supply chain) in turn reducing customers’ future borrowing power, and reducing the value of assets and collateral associated with existing loans; • our allowance for credit losses may increase; • the value of our securities portfolio may decline; or • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
A significant decline in general economic conditions, caused by inflation, tariffs or other domestic or international governmental policies, changes in interest rates, recession, acts of terrorism, an outbreak of hostilities or other international or domestic events, tax reform, unemployment, an epidemic or pandemic or other factors beyond our control, could result in the following consequences, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations: • demand for our products and services may decline; • loan delinquencies, problem assets, and foreclosures may increase; • low cost or non-interest-bearing deposits may decrease; • inflation may accelerate, which may increase our operating costs and also may increase real estate costs and lower customer buying power, thereby reducing loan demand; • collateral for loans, especially real estate, may decline in value, (including due to the inability to complete construction projects due to disruption in the supply chain) in turn reducing customers’ future borrowing power, and reducing the value of assets and collateral associated with existing loans; • our allowance for credit losses may increase; 37 • the value of our securities portfolio may decline; or • the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us.
However, a loan that does not exceed $2 million (including a group of loans to one borrower) that is for commercial, corporate, business, or agricultural purposes is included in our qualified thrift investments. As of December 31, 2024, we maintained 77.7% of our portfolio assets in qualified thrift investments.
However, a loan that does not exceed $2 million (including a group of loans to one borrower) that is for commercial, corporate, business, or agricultural purposes is included in our qualified thrift investments. As of December 31, 2025, we maintained 78.0% of our portfolio assets in qualified thrift investments.
While we believe we have implemented policies and procedures with respect to our commercial real estate loan portfolio consistent with this guidance, bank regulators could require us to implement additional policies and procedures consistent with their interpretation of the guidance that may result in additional costs to us or that may result in a curtailment of our multifamily and commercial real estate lending and/or the requirement that we maintain higher levels of regulatory capital, either of which would adversely affect our loan originations and profitability.
While we believe we have implemented policies and procedures with respect to our commercial real estate loan portfolio consistent with this guidance, bank regulators could require us to implement additional policies and procedures consistent with their interpretation of the guidance that may result in additional costs to us or that may result in a curtailment of our multifamily and commercial real estate lending and/or the requirement that we maintain higher levels of regulatory capital, either of which would adversely affect our loan originations and profitability. 32 Our concentration in multifamily loans and commercial real estate loans could expose us to increased lending risks and related credit losses.
In addition, if loans that are collateralized by real estate become troubled and the value of the real estate has been significantly impaired, then we may not be able to recover the full contractual amount of principal and interest that we anticipated at the time we originated the loan, which could cause us to increase our provision for credit losses and adversely affect our operating results and financial condition. 31 Our concentration of loans in certain industries could have adverse effects on credit quality.
In addition, if loans that are collateralized by real estate become troubled and the value of the real estate has been significantly impaired, then we may not be able to recover the full contractual amount of principal and interest that we anticipated at the time we originated the loan, which could cause us to increase our provision for credit losses and adversely affect our operating results and financial condition.
In the event of a breakdown in the internal control system, improper operation of systems or improper employee actions, we could suffer financial loss, face regulatory action, and suffer damage to our reputation.
In the event of a breakdown in the internal control system, improper operation of systems or improper employee actions, we could suffer financial loss, face regulatory action, and suffer damage to our reputation. We face funds transfer and payments-related risks.
In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance. Inflation can have an adverse impact on our business and on our customers.
In addition, deflationary pressures, while possibly lowering our operating costs, could have a significant negative effect on our borrowers, especially our business borrowers, and the values of underlying collateral securing loans, which could negatively affect our financial performance.
At December 31, 2024, our simulation model indicated that our net portfolio value (the net present value of our interest-earning assets and interest-bearing liabilities) would increase by 6.87% if there was an instantaneous parallel 200 basis point decrease in market interest rates.
At December 31, 2025, our simulation model indicated that our net portfolio value (the net present value of our interest-earning assets and interest-bearing liabilities) would increase by 0.98% if there was an instantaneous parallel 200 basis point decrease in market interest rates and would decrease by 7.32% if there was an instantaneous parallel 200 basis point increase in market interest rates.
Competition also makes it more difficult and costly to attract and retain qualified employees. Many of the institutions with which we compete have substantially greater resources and lending limits than we have and may offer services that we do not provide.
Competition also makes it more difficult and costly to attract and retain qualified employees. Many of the institutions with which we compete have substantially greater resources and lending limits than we have and may offer services that we do not provide. For example, the Guiding and Establishing National Innovation for U.S.
Based on these factors we have a concentration in multifamily and commercial real estate lending, as such loans represented approximately 433.5% of Northfield Bank's capital as of December 31, 2024.
Based on these factors we have a concentration in multifamily and commercial real estate lending, as such loans represented approximately 380.2% of Northfield Bank's capital as of December 31, 2025.
In addition, bank regulators periodically review our allowance for credit losses and, based on information available to them at the time of their review, may require us to increase our allowance for credit losses or recognize further loan charge-offs.
Material additions to our allowance would materially decrease our net income. 33 In addition, bank regulators periodically review our allowance for credit losses and, based on information available to them at the time of their review, may require us to increase our allowance for credit losses or recognize further loan charge-offs.
A financial institution may have a concentration in commercial real estate lending if, among other factors, (i) total reported loans for construction, land acquisition and development, and other land represent 100% or more of total capital, or (ii) total reported loans secured by multifamily and non-farm residential properties, loans for construction, land acquisition and development and other land, and loans otherwise sensitive to the general commercial real estate market, including loans to commercial real estate related entities, represent 300% or more of total capital.
A financial institution may have a concentration in commercial real estate lending if, among other factors, (i) total reported loans for construction, land acquisition and development, and other land represent 100% or more of total capital and the outstanding balance of a financial institution's commercial real estate loan portfolio has increased 50% or more during the prior 36 months, or (ii) total reported loans secured by multifamily and non-farm residential properties, loans for construction, land acquisition and development and other land, and loans otherwise sensitive to the general commercial real estate market, including loans to commercial real estate related entities, represent 300% or more of total capital.
In addition, our credit risk may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due to us.
Many of these transactions expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at prices not sufficient to recover the full amount of the financial instrument exposure due to us.
A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations.
A deterioration in economic conditions in the United States and our markets could result in an increase in loan delinquencies and non-performing assets, decreases in loan collateral values and a decrease in demand for our products and services, all of which, in turn, would adversely affect our business, financial condition and results of operations. 38 Interruption of our customer's supply chains and federal funding could negatively impact their business and operations and impact their ability to repay their loans.
At December 31, 2024, $3.49 billion, or 86.7%, of our loan portfolio held-for-investment, net, consisted of multifamily and other commercial real estate loans.
At December 31, 2025, $3.27 billion, or 84.9%, of our loan portfolio held-for-investment, net, consisted of multifamily and other commercial real estate loans.
Although interest rate risk calculations provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net portfolio value or net interest income and likely will differ from actual results. 38 Risks Related to Operational Matters Our funding sources may prove insufficient to replace deposits at maturity and support our future growth.
Although interest rate risk calculations provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net portfolio value or net interest income and likely will differ from actual results.
Given that future deterioration in the U.S. credit and financial markets is a possibility, losses or significant deterioration in the fair value of our U.S. government issued or guaranteed investments may occur. At December 31, 2024, we had approximately $75.3 million, $35.8 million and $989.0 million invested in U.S.
Given that future deterioration in the U.S. credit and financial markets is a possibility, losses or significant deterioration in the fair value of our U.S. government issued or guaranteed investments may occur. At December 31, 2025, we had approximately $558,000, $32.2 million and $1.38 billion invested in U.S.
Risks Related to Interest Rates Changes in market interest rates in an increasing rate environment could adversely affect our financial condition and results of operations. Our financial condition and results of operations are significantly affected by changes in market interest rates.
This could result in lower fee income, and loss of deposits, related to our payments processing business. 39 Risks Related to Interest Rates Changes in market interest rates in an increasing rate environment could adversely affect our financial condition and results of operations. Our financial condition and results of operations are significantly affected by changes in market interest rates.
As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally could lead to market-wide liquidity problems and losses or defaults by us or by other institutions and organizations. Many of these transactions expose us to credit risk in the event of default of our counterparty or client.
As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally could lead to market-wide liquidity problems and losses or defaults by us or by other institutions and organizations.
We also receive funds from loan repayments, investment security maturities and income on other interest-earning assets. While we emphasize the generation of low-cost core deposits as a source of funding, there is strong competition for such deposits in our market area. Additionally, deposit balances can decrease if customers identify alternative investments opportunities.
Deposits have traditionally been our primary source of funds for use in lending and investment activities. We also receive funds from loan repayments, investment security maturities and income on other interest-earning assets. While we emphasize the generation of low-cost stable core deposits as a source of funding, there is strong competition for such deposits in our market area.
As of December 31, 2024, the Bank's loan portfolio included (i) lessors of office buildings of $184.0 million, or 20.7%, of commercial real estate loans; and (ii) borrowers in the retail industry of $142.0 million, or 16.0%, of commercial real estate loans.
As of December 31, 2025, the Bank's loan portfolio included (i) lessors of office buildings of $174.7 million, or 19.2%, of commercial real estate loans; and (ii) borrowers in the retail industry of $137.2 million, or 15.1%, of commercial real estate loans.
As a result, the value of the collateral located in New York State securing our multifamily loans or the future net operating income of such properties could potentially become impaired.
Further restrictions on rent-regulated properties may be enacted or existing restrictions strengthened as a result of the recent New York City mayoral elections. As a result, the value of the collateral located in New York State securing our multifamily loans or the future net operating income of such properties could potentially become impaired.
As of December 31, 2024, we had a net unrealized loss of $29.0 million on our debt securities available-for-sale portfolio as a result of the previously rising interest rate environment. Our investment securities totaled $1.14 billion, or 20.1%, of total assets, at December 31, 2024.
As of December 31, 2025, we had a net unrealized loss of $14.8 million on our debt securities available-for-sale portfolio as a result of the previously rising interest rate environment.
Our access to funding sources, including the FHLB and brokered deposits, in amounts adequate to finance our activities could be impaired by factors that affect us specifically or the financial services industry in general.
Our investment securities totaled $1.44 billion, or 25.0%, of total assets, at December 31, 2025. 40 Our access to funding sources, including the FHLB and brokered deposits, in amounts adequate to finance our activities could be impaired by factors that affect us specifically or the financial services industry in general.
Adverse operating results or changes in industry conditions could lead to difficulty or an inability to access these additional funding sources. Our financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates.
Our financial flexibility will be severely constrained if we are unable to maintain our access to funding or if adequate financing is not available to accommodate future growth at acceptable interest rates.
However, in September, the FRB reduced rates by 50 basis points and by an additional 25 basis points in November and December. As inflation increases and market interest rates rise, the value of our investment securities, particularly those with longer maturities, decrease although this effect can be less pronounced for floating rate instruments.
As inflation increases, potentially causing market interest rates to rise, the value of our investment securities, particularly those with longer maturities, decrease although this effect can be less pronounced for floating rate instruments.
Under the guidance, a financial institution that, like us, is actively involved in commercial real estate lending should perform a risk assessment to identify concentrations.
The OCC and the other federal bank regulatory agencies have promulgated joint guidance on sound risk management practices for financial institutions with concentrations in commercial real estate lending. Under the guidance, a financial institution that, like us, is actively involved in commercial real estate lending should perform a risk assessment to identify concentrations.
A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on us. We maintain sufficient funds to respond to the needs of depositors and borrowers. Deposits have traditionally been our primary source of funds for use in lending and investment activities.
Risks Related to Operational Matters Our funding sources may prove insufficient to replace deposits at maturity and support our future growth. A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on us. We maintain sufficient funds to respond to the needs of depositors and borrowers.
Growth opportunities may not be available or we may not be able to manage our growth successfully. If we do not manage our growth effectively, our financial condition and operating results could be negatively affected. 35 Acquisitions may disrupt our business and dilute stockholder value.
Growth opportunities may not be available or we may not be able to manage our growth successfully. If we do not manage our growth effectively, our financial condition and operating results could be negatively affected. Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earnings.
We are required to maintain a significant percentage of our total assets in residential mortgage loans and investments secured by residential mortgage loans, which restricts our ability to diversify our loan portfolio.
Changes in policies and regulations generally are beyond our control, and we are unable to predict what changes may occur or the manner in which any future changes may affect our business, financial condition and results of operations. 35 We are required to maintain a significant percentage of our total assets in residential mortgage loans and investments secured by residential mortgage loans, which restricts our ability to diversify our loan portfolio.
Alternatively, we may find it necessary to pursue different structures, including converting Northfield Bank’s savings bank charter to a commercial bank charter or electing to be treated as a covered savings association. 34 We are subject to stringent capital requirements, which may adversely affect our return on equity, require us to raise additional capital, or constrain us from paying dividends or repurchasing shares.
Alternatively, we may find it necessary to pursue different structures, including converting Northfield Bank’s savings bank charter to a commercial bank charter or electing to be treated as a covered savings association.
Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. In response to a pronounced rise in inflation, the FRB has raised certain benchmark interest rates to combat inflation.
Inflation can have an adverse impact on our business and on our customers. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money.
Accordingly, as a part of our liquidity management, we may use a number of funding sources in addition to deposits and repayments and maturities of loans and investments. As we continue to grow, we are likely to become more dependent on these sources, which may include FHLB advances, federal funds purchased and brokered certificates of deposit.
Additionally, deposit balances can decrease if customers identify alternative investments opportunities. Accordingly, as a part of our liquidity management, we may use a number of funding sources in addition to deposits and repayments and maturities of loans and investments.
We could also be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements in material amounts. We hold certain intangible assets that could be classified as impaired in the future.
We could also be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements in material amounts. If our municipal banking deposits were lost within a short period of time, this could negatively impact our liquidity and earnings.
At December 31, 2024, the Company had approximately $437.7 million of New York multifamily loans, or 11% of our total loan portfolio, that have some form of rent stabilization or rent control. If our allowance for credit losses is not sufficient to cover actual credit losses, our earnings and capital could decrease.
At December 31, 2025, the Company had approximately $418.8 million of New York multifamily loans, or 10.9% of our total loan portfolio, that have some form of rent stabilization or rent control. Our concentration of loans in certain industries could have adverse effects on credit quality.
If our municipal banking deposits were lost within a short period of time, this could negatively impact our liquidity and earnings. As of December 31, 2024, municipal deposits, which are secured by the Bank's investment securities or letters of credit issued by the FHLBNY, totaled $859.3 million, or 20.8% of total deposits.
As of December 31, 2025, municipal deposits, which are secured by the Bank's investment securities or letters of credit issued by the FHLBNY, totaled $988.3 million, or 24.6% of total deposits. Municipal deposits may be more volatile than other deposits and generally are larger than our retail or business deposits.
Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.
In addition, employee errors and employee and customer misconduct could subject us to financial losses or regulatory sanctions and seriously harm our reputation. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits.
Our loans to businesses and individuals and our deposit relationships and related transactions are subject to exposure to the risk of loss due to fraud and other financial crimes. In addition, employee errors and employee and customer misconduct could subject us to financial losses or regulatory sanctions and seriously harm our reputation.
Our loans to businesses and individuals and our deposit relationships and related transactions are subject to exposure to the risk of loss due to fraud and other financial crimes. Fraudulent activity may take many forms, including loan fraud, check fraud (counterfeit, forgery, etc.), electronic fraud, wire fraud, phishing, social engineering and other dishonest acts.
Removed
See also, “Forward-Looking Statements.” Risks Related to Our Lending Activities The level of our commercial real estate loan portfolio subjects us to additional regulatory scrutiny. The OCC and the other federal bank regulatory agencies have promulgated joint guidance on sound risk management practices for financial institutions with concentrations in commercial real estate lending.
Added
See also, “Forward-Looking Statements.” Risks related to the announced merger with Columbia Financial, Inc. There is no assurance when or if the Merger will be completed. Completion of the Merger is subject to satisfaction or waiver of a number of conditions.
Removed
Our concentration in multifamily loans and commercial real estate loans could expose us to increased lending risks and related credit losses.
Added
The Company and Columbia Financial currently anticipate the Merger will close in the third quarter of 2026, however there can be no assurance that the closing conditions will be fulfilled or can be fulfilled in a timely manner. Additionally, the Company and Columbia Financial can terminate the Merger Agreement under specified circumstances.
Removed
We regularly evaluate merger and acquisition opportunities and conduct due diligence activities related to possible transactions with other financial institutions and financial services companies. As a result, negotiations may take place and future mergers or acquisitions involving cash or equity securities may occur at any time.
Added
Regulatory approvals required to complete the Merger may not be received, may take longer than expected or may impose conditions that are not presently anticipated or cannot be met. Before the Merger may be completed, the Company and Columbia Financial must obtain approvals from, or provide notice to, the FRB and the OCC.
Removed
We seek acquisition partners that offer us either significant market presence or the potential to expand our market footprint and improve profitability through economies of scale or expanded services. Acquiring other banks, non-bank entities, businesses, or branches initially may have an adverse effect on our financial results and may involve various other risks commonly associated with acquisitions.
Added
In determining whether to grant these approvals, the applicable regulatory authorities consider a variety of factors. These regulatory authorities may impose conditions on the granting of such approvals.
Removed
These include: • integrating personnel with diverse business backgrounds; • converting customers to new systems; • combining different corporate cultures and operating systems; and • retaining key employees.
Added
Such conditions or changes and the process of obtaining regulatory approvals could have the effect of delaying completion of the Merger or of imposing additional costs or limitations on the combined company following the Merger.
Removed
Loans that were acquired as part of our acquisitions of other depository institutions are not underwritten or originated in accordance with our credit standards, including environmental matters, and we did not have long-standing relationships with many of these borrowers at the time of acquisition.
Added
The regulatory approvals may not be received at all, may not be received in a timely fashion, or may contain conditions on the completion of the Merger that are not anticipated or cannot be met.
Removed
The acquired loans are underwritten at the date of acquisition based on our credit standards, which can temporarily increase loans classified as special mention and substandard for a period of time until these loans are integrated and conform to our credit standards.
Added
If the consummation of the Merger is delayed, including by a delay in receipt of necessary regulatory approvals, the business, financial condition and results of operations of the Company may also be materially and adversely affected.
Removed
Although we reviewed the loan portfolios of each institution acquired as part of the diligence process, and believe that we have established reasonable credit marks with regard to all loans acquired, we may incur losses in excess of the credit marks with regard to these acquired loans, and any such losses, if they occur, may have a material adverse effect on our business, financial condition, and results of operations.
Added
Failure to complete the Merger, the termination of the Merger Agreement or a significant delay in the consummation of the Merger could negatively impact the Company. The Merger Agreement is subject to a number of conditions which must be fulfilled to complete the Merger.
Removed
The success of an acquisition will depend, in part, on our ability to realize the anticipated benefits and cost savings. If we are unable to integrate an acquired company successfully, the anticipated benefits and cost savings may not be realized fully or may take longer to realize than expected.
Added
In addition, if the Merger is not completed by January 31, 2027 either Columbia Financial or the Company may choose to terminate the Merger Agreement at any time after that date, provided that the failure to complete the Merger on or before that date is not due to the failure of the party seeking to terminate the Merger Agreement to perform or observe the covenants and agreements of such party under the Merger Agreement.
Removed
A significant decline in asset valuations or cash flows may also cause us not to realize expected benefits. Our inability to tailor our retail delivery model to respond to consumer preferences in banking may negatively affect earnings.
Added
If the Merger is not consummated, the ongoing business, financial condition and results of operations of the Company may be materially adversely affected and the market price of the Company’s common stock may decline significantly, particularly to the extent that the current market price reflects the assumption that the Merger will be consummated.
Removed
Interruption of our customer's supply chains and federal funding could negatively impact their business and operations and impact their ability to repay their loans.
Added
In addition, the Company has incurred and will further incur substantial expenses in connection with the completion of the Merger. If the Merger is not completed, the Company would have to recognize these expenses without realizing the expected benefits of the Merger.
Removed
Information security risks have generally increased in recent years because of the proliferation of new technologies, the use of the Internet and telecommunications technologies to conduct financial and other transactions, the increased sophistication and activities of perpetrators of cyber-attacks and mobile phishing and an increase in our remote workforce.
Added
Any of the foregoing, or other risks arising in connection with the failure of or delay in consummating the Merger, could have a material adverse effect on the Company’s business, financial condition and results of operations.
Removed
If these assets are considered to be either partially or fully impaired in the future, our earnings and the book values of these assets would decrease. At December 31, 2024, we had $41.0 million in goodwill which we are required to test on a periodic basis.
Added
If the Merger Agreement is terminated and the Company’s board of directors seeks another Merger or business combination, the Company’s stockholders cannot be certain that the Company will be able to find a party willing to engage in a transaction on more attractive terms than the Merger with Columbia Financial.
Removed
The impairment testing process considers a variety of factors, including the current market price of our common shares, the estimated net present value of our assets and liabilities and information concerning the terminal valuation of similarly situated insured depository institutions.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeKey elements of our enterprise cybersecurity risk management program include: • implementation of policies and procedures in the areas of Information Security, Business Continuity, Disaster Recovery, Privacy, Third-Party Relationship Risk Management, Risk Management, and Incident Response; • risk assessments designed to help identify material cybersecurity risks to our critical systems, data, products, services, and our broader enterprise information technology environment; • an independent second line function, the Information Security Department, which is principally responsible for managing our cybersecurity risk assessment processes, executing our incident response plan, and monitoring of our security controls; • the use of external service providers, where appropriate, to assess, test and enhance our security controls, including penetration testing, training, and table top exercises; • a comprehensive employee training and awareness program which includes periodic security assessments to test knowledge and reinforce adoption of security processes and controls that include simulated phishing attacks; • membership with the Financial Services Information Sharing and Analysis Center (FS-ISAC) and annual participation in the Cyber Attacks against Payment Systems (CAPS) exercises; • regular reporting of cybersecurity metrics and other risk/threat information matters to both the Management Risk and CIT Committees; • a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and • a third-party relationships risk management process for service providers, suppliers and vendors which analyses, monitors, reports, and mitigates cyber risks associated with third-party relationships.
Biggest changeKey elements of the Company's enterprise cybersecurity risk management program include: • implementation of policies and procedures addressing areas including, but not limited to, Information Security, Business Continuity, Disaster Recovery, Privacy, Third-Party Relationship Risk Management, Enterprise-Risk 45 Management, and Incident Response, which are periodically reviewed and updated in response to evolving threats and regulatory requirements; • cybersecurity risk assessments designed to help identify material cybersecurity risks to our identified critical systems, data, products, services, and our broader information technology environment, with identified risks prioritized based on potential impact and likelihood and escalated through established ERM governance processes; • an independent second-line risk management function, the Information Security Department, which is primarily responsible for managing our cybersecurity risk assessment processes, coordinating execution of the incident response plan, and monitoring the performance and operations of security controls; • the use of external service providers, where appropriate, to assess, test and enhance our security controls, including penetration testing, employee training, and table top exercises; • Company-wide employee training and awareness program that includes periodic security assessments to test knowledge and reinforce adherence to security processes and controls, including simulated phishing exercises; • membership in the Financial Services Information Sharing and Analysis Center (FS-ISAC) and annual participation in the Cyber Attacks against Payment Systems (CAPS) exercises; • periodic reporting of cybersecurity metrics and threat intelligence to both the Management Risk and CIT Committees; • a cybersecurity incident response plan that includes procedures for the detection, containment, remediation, recovery, and post-incident review of cybersecurity incidents, coordinated with legal, compliance, and applicable regulatory requirements; and • a third-party relationships risk management process that evaluates, monitors, reports on, and mitigates cybersecurity risks associated with service providers, suppliers, and vendors throughout the vendor lifecycle, including onboarding, ongoing monitoring, and termination.
For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition, refer to Item 1A. Risk Factors – “Risks Related to Operational Matters”.
For a discussion of whether and how any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition, refer to Item 1A.
Risks from cybersecurity threats, including any previous cybersecurity events, have not materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial conditions, and any expenses incurred from cybersecurity incidents have been immaterial.
Based on management's current assessment, risks from cybersecurity threats, including any previous cybersecurity events, have not materially affected and are not reasonably likely to materially affect the Company's business strategy, results of operations, or financial condition. Any expenses incurred from cybersecurity incidents to date have been immaterial.
Cybersecurity Governance The Board of Directors has established its CIT Committee with specific responsibilities for overseeing the cybersecurity risk management program, among other things. Our Chief Information Security Officer (“CISO”) provides the CIT Committee with periodic reports on cybersecurity risks, threats and any material cybersecurity incidents.
Risk Factors – “Risks Related to Operational Matters.” Cybersecurity Governance The Board of Directors has established the CIT Committee with specific responsibilities for overseeing the Company's cybersecurity risk management program, among other things. The Chief Information Security Officer (“CISO”) provides the CIT Committee with periodic reports regarding cybersecurity risks, threats activity, and any cybersecurity incidents determined to be material.
Northfield Bank maintains a comprehensive Information and Cybersecurity Program led by our Chief Risk Officer, the Chief Information Officer, and the CISO. The program is designed to identify and mitigate information security risks, with timely Board oversight.
The Company maintains an Information and Cybersecurity Program led by our Chief Risk Officer (“CRO”), Chief Information Officer (“CIO”), and CISO. The program is designed to identify and mitigate information security risks and to provide, timely Board oversight.
The CIT Committee also retains an independent external cybersecurity consultant who attends all CIT Committee meetings and reports directly to the CIT Committee Chair. In addition, the external cyber security consultant provides periodic training to the CIT Committee and to our Board of Directors.
The CIT Committee also retains an independent external cybersecurity consultant who, at the Committee's request, periodically attends the CIT Committee meetings and provides independent perspectives directly to the Committee Chair. The external cyber-security consultant also provides periodic cybersecurity education and training to the CIT Committee and the full Board of Directors.
It shares common methodologies, reporting channels and governance processes that apply to other areas of enterprise risk, including third-party relationships, legal, compliance, strategic, operational, and financial.
The program leverages common methodologies, reporting channels and governance processes used across other enterprise risk areas, including third-party relationships, legal, compliance, strategic, operational, and financial risks.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy Our cybersecurity risk management program is an integrated component of the Enterprise Risk Management strategy designed to protect the confidentiality, integrity and availability of our critical systems and information.
ITEM 1C. CYBERSECURITY Cybersecurity Risk Management and Strategy Our cybersecurity risk management program is aligned with the Company’s business strategy and is integrated into the Company's Enterprise Risk Management ("ERM") framework. The program is designed to identify, assess, manage, and monitor risks to the confidentiality, integrity, and availability of the Company's identified critical systems and information.
The Chief Risk Officer briefs the Board of Directors on information security matters during every meeting, ensuring that cybersecurity risks and strategies align with Northfield Bank's risk profile. The Information Security Department is primarily responsible for identifying, assessing and managing material risks from cybersecurity threats and overseeing cybersecurity third-party relationships.
The CRO briefs the Board of Directors on cybersecurity and information security matters during regular Board meetings to ensure alignment with the Company's risk profile and ERM framework. 46 The Information Security Department is primarily responsible for identifying, assessing, and managing material cybersecurity risks and overseeing cybersecurity risks associated with third-party relationships.
Our internal audit team, led by our Chief Internal Auditor, provides independent assurance and evaluation of processes, controls and cybersecurity risk management practices to ensure they are adequate and functioning as intended. 44 The Information Security Department also monitors the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, including briefings with internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the information technology environment.
The Information Security Department monitors the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, including briefings with internal security personnel, threat intelligence obtained from governmental, public or private sources, information provided by external consultants, and alerts and reports generated by security tools deployed within the Company's information technology environment.
Our CISO and our Chief Information Officer, along with key members of their departments, regularly collaborate with peer institutions, industry groups, policymakers and third-party relationships to discuss cybersecurity trends and issues and identify best practices. The cybersecurity risk management program is periodically reviewed to address changing threats and conditions.
The department is led by the CISO, who has cybersecurity experience, training, and professional certifications. The CISO and our CIO, along with members of their teams, regularly engage with peer institutions, industry groups, and public- and private-sector partners to discuss cybersecurity trends, emerging threats, and industry practices.
Removed
We design and evaluate our program based on industry recognized standards such as the National Institute of Standards and Technology Cybersecurity Framework and the Center for Internet Security Controls.
Added
The Board of Directors, through its CIT Committee, provides oversight of the Company’s cybersecurity risk management program, including review of material cybersecurity risks, incidents, and management’s mitigation activities. Cybersecurity risks and incidents are evaluated through the Company’s disclosure controls and procedures to determine whether public disclosure is required.
Removed
This does not imply that we meet any particular technical standards, specifications, or requirements, but rather that we use these standards as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. 43 Our cybersecurity risk management program is closely aligned with the Company’s business strategy.
Added
While the Company has not experienced material cybersecurity incidents to date, the cybersecurity threat landscape continues to evolve, and risks may increase due to factors such as heightened fraud activity, increased reliance on third-party technology providers, and broader systemic or geopolitical events.
Removed
The Information Security Department is led by our CISO, who has over 15 years of experience in the cybersecurity space and has obtained professional security certifications and advanced training in the field of cybersecurity and technology.
Added
The cybersecurity risk management program is periodically reviewed and updated in response to evolving threats and conditions. The internal audit function, led by our Chief Internal Auditor, provides independent assurance over cybersecurity-related processes, controls, and risk management practices to assess whether they are appropriately designed and operating effectively.
Added
Management has authority to escalate significant cybersecurity risks or incidents to the CIT Committee or the full Board of Directors between scheduled meetings, as appropriate.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe branch offices are located in the New York counties of Richmond and Kings, and the New Jersey counties of Hunterdon, Mercer, Middlesex, and Union. The net book value of our premises, land, and equipment was $22.0 million at December 31, 2024.
Biggest changeThe branch offices are located in the New York counties of Richmond (“Staten Island”) and Kings (“Brooklyn”) and the New Jersey counties of Hunterdon, Mercer, Middlesex, and Union. The net book value of our premises, land, and equipment was $19.9 million at December 31, 2025.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS In the normal course of business, we may be party to various outstanding legal proceedings and claims. In the opinion of management, our consolidated financial statements are not likely to be materially affected by the outcome of such legal proceedings and claims as of December 31, 2024. ITEM 4.
Biggest changeITEM 3. LEGAL PROCEEDINGS In the normal course of business, we may be party to various outstanding legal proceedings and claims. In the opinion of management, our consolidated financial statements are not likely to be materially affected by the outcome of such legal proceedings and claims as of December 31, 2025. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 47
Removed
MINE SAFETY DISCLOSURES Not applicable. 45 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAt December 31, 2024, the Company had no outstanding repurchase programs. The Company did not make any repurchases of its common stock during the three months ended December 31, 2024. On February 26, 2025, the Board of Directors of the Company approved a new $5.0 million stock repurchase program and anticipates conducting such repurchases beginning on March 3, 2025.
Biggest changeAt December 31, 2025, the Company had no outstanding repurchase programs. The Company did not repurchase any shares of its common stock during the three months ended December 31, 2025. 49 PART II ITEM 6. [RESERVED]
On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program which was completed in May 2024, and on June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in August 2024.
On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program which was completed in May 2024. On June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in August 2024.
Stock Performance Graph Set forth below is a stock performance graph comparing (a) the cumulative total return on the Northfield Bancorp’s common stock for the period December 31, 2019, through December 31, 2024, (b) the cumulative total return of the stocks included in the NASDAQ Composite Index over such period, (c) the cumulative total return on stocks included in the S&P U.S.
Stock Performance Graph Set forth below is a stock performance graph comparing (a) the cumulative total return on the Northfield Bancorp’s common stock for the period December 31, 2020, through December 31, 2025, (b) the cumulative total return of the stocks included in the NASDAQ Composite Index over such period, (c) the cumulative total return on stocks included in the S&P U.S.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Our shares of common stock are traded on the NASDAQ Global Select Market under the symbol “NFBK.” The approximate number of holders of record of Northfield Bancorp’s common stock as of February 28, 2025, was 3,565.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES Our shares of common stock are traded on the NASDAQ Global Select Market under the symbol “NFBK.” The approximate number of holders of record of Northfield Bancorp’s common stock as of February 27, 2026, was 3,361.
During the years ended December 31, 2024 and 2023, the Company repurchased 1,802,072 shares of its common stock outstanding at an average price of $10.24 per share for a total cost of $18.4 million, and 3,074,332 shares of its common stock outstanding at an average price of $11.99 per share for a total cost of $36.9 million, respectively, pursuant to the approved stock repurchase plans.
During the years ended December 31, 2025 and 2024, the Company repurchased 1,302,619 shares of its common stock outstanding at an average price of $11.61 per share for a total cost of $15.1 million, and 1,802,072 shares of its common stock outstanding at an average price of $10.24 per share for a total cost of $18.4 million, respectively, pursuant to the approved stock repurchase plans.
On June 1, 2023, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in August 2023. On November 7, 2023, the Board of Directors of the Company approved a $7.5 million stock repurchase program which was completed in January 2024.
On February 26, 2025, the Board of Directors of the Company approved a $5.0 million stock repurchase program which was completed in March 2025. On April 23, 2025, the Board of Directors of the Company approved a $10.0 million stock repurchase program which was completed in June 2025.
SmallCap Bank Index 100.00 90.82 126.43 111.47 112.03 132.44 KBW NASDAQ Bank Index 100.00 89.69 124.06 97.52 96.65 132.60 Source: S&P Global Market Intelligence, a division of S&P Global Inc. 46 Issuer Purchases of Equity Securities On June 16, 2022, the Board of Directors of the Company approved a $45.0 million stock repurchase program, which was completed in May 2023.
SmallCap Bank Index 100.00 139.21 122.74 123.35 145.82 160.37 KBW NASDAQ Bank Index 100.00 138.33 108.73 107.76 147.85 196.00 Source: S&P Global Market Intelligence, a division of S&P Global Inc. 48 Issuer Purchases of Equity Securities On November 7, 2023, the Board of Directors of the Company approved a $7.5 million stock repurchase program which was completed in January 2024.
As of Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Northfield Bancorp, Inc. 100.00 75.64 102.25 103.13 86.46 83.83 NASDAQ Composite Index 100.00 144.92 177.06 119.45 172.77 223.87 S&P U.S.
As of Index 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Northfield Bancorp, Inc. 100.00 135.17 136.34 114.29 110.82 114.32 NASDAQ Composite Index 100.00 122.18 82.43 119.22 154.48 187.14 S&P U.S.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

118 edited+30 added−25 removed64 unchanged
Biggest changeAt December 31, 2024 2023 2022 (Dollars in thousands) Selected Financial Condition Data: Total assets $ 5,666,378 $ 5,598,396 $ 5,601,293 Cash and cash equivalents 167,744 229,506 45,799 Trading securities 13,884 12,549 10,751 Debt securities available-for-sale, at estimated fair value 1,100,817 795,464 952,173 Debt securities held-to-maturity, at amortized cost 9,303 9,866 10,760 Equity securities 14,261 10,629 10,443 Loans held-for-sale 4,897 — — Loans held-for-investment, net 4,022,224 4,203,654 4,243,693 Allowance for credit losses (35,183) (37,535) (42,617) Net loans held-for-investment 3,987,041 4,166,119 4,201,076 Bank-owned life insurance 175,759 171,543 167,912 FHLBNY stock, at cost 35,894 39,667 30,382 Operating lease right-of-use assets 27,771 30,202 34,288 Deposits 4,138,477 3,878,435 4,150,219 Borrowed funds 666,402 859,272 583,859 Subordinated debentures, net of issuance costs 61,442 61,219 60,996 Operating lease liabilities 32,209 35,205 39,790 Total liabilities 4,961,682 4,898,951 4,899,903 Total stockholders’ equity $ 704,696 $ 699,445 $ 701,390 Years Ended December 31, 2024 2023 2022 (Dollars in thousands, except share data) Selected Operating Data: Interest income $ 237,908 $ 208,795 $ 179,688 Interest expense 123,423 84,128 21,382 Net interest income before provision for credit losses 114,485 124,667 158,306 Provision for credit losses 4,281 1,353 4,482 Net interest income after provision for credit losses 110,204 123,314 153,824 Non-interest income 16,822 11,896 7,983 Non-interest expense 86,525 83,450 76,948 Income before income taxes 40,501 51,760 84,859 Income tax expense 10,556 14,091 23,740 Net income $ 29,945 $ 37,669 $ 61,119 Net income per common share - basic $ 0.72 $ 0.86 $ 1.32 Net income per common share - diluted $ 0.72 $ 0.86 $ 1.32 Weighted average basic shares outstanding 41,567,370 43,560,844 46,234,122 Weighted average diluted shares outstanding 41,628,660 43,638,616 46,438,119 49 At or For the Years Ended December 31, 2024 2023 2022 Selected Financial Ratios and Other Data: Performance Ratios: Return on assets (ratio of net income to average total assets) (1) (2) (3) 0.52 % 0.68 % 1.09 % Return on equity (ratio of net income to average equity) (1) (2) (3) 4.30 5.45 8.57 Interest rate spread (4) 1.45 1.82 2.82 Net interest margin (5) 2.10 2.35 2.97 Dividend payout ratio (6) 72.89 60.51 39.48 Efficiency ratio (7) (8) 65.90 61.11 46.27 Non-interest expense to average total assets 1.51 1.50 1.38 Average interest-earning assets to average interest-bearing liabilities 128.77 133.01 137.82 Average equity to average total assets 12.14 12.44 12.75 Asset Quality Ratios: Non-performing assets to total assets 0.36 0.20 0.18 Non-performing loans to total loans (9) (10) 0.51 0.27 0.24 Allowance for credit losses to total non-performing loans (11) 227.72 328.30 416.26 Allowance for credit losses to total loans held-for-investment, net (12) (13) 0.87 0.89 1.00 Capital Ratio: Tier 1 capital (to adjusted assets) 12.11 12.58 12.64 Other Data: Number of full service offices 37 39 38 Full time equivalent employees 359 401 400 (1) The year ended December 31, 2024, includes a $2.4 million, after tax, gain on sale of property, $795,000 additional tax expense related to options that expired in June 2024, and $492,000, after tax, of severance costs.
Biggest changeAt December 31, 2025 2024 2023 (Dollars in thousands) Selected Financial Condition Data: Total assets $ 5,754,010 $ 5,666,378 $ 5,598,396 Cash and cash equivalents 163,951 167,744 229,506 Trading securities 15,215 13,884 12,549 Debt securities available-for-sale, at estimated fair value 1,412,419 1,100,817 795,464 Debt securities held-to-maturity, at amortized cost 8,339 9,303 9,866 Equity securities 5,000 14,261 10,629 Loans held-for-sale — 4,897 — Loans held-for-investment, net 3,856,773 4,022,224 4,203,654 Allowance for credit losses (38,144) (35,183) (37,535) Net loans held-for-investment 3,818,629 3,987,041 4,166,119 Bank-owned life insurance 182,828 175,759 171,543 FHLBNY stock, at cost 46,568 35,894 39,667 Operating lease right-of-use assets 25,789 27,771 30,202 Goodwill — 41,012 41,012 Total liabilities 5,063,951 4,961,682 4,898,951 Deposits 4,015,809 4,138,477 3,878,435 Borrowed funds 900,216 666,402 859,272 Subordinated debentures, net of issuance costs 61,665 61,442 61,219 Operating lease liabilities 29,643 32,209 35,205 Total stockholders’ equity $ 690,059 $ 704,696 $ 699,445 Years Ended December 31, 2025 2024 2023 (Dollars in thousands, except share data) Selected Operating Data: Interest income $ 249,096 $ 237,908 $ 208,795 Interest expense 111,730 123,423 84,128 Net interest income before provision for credit losses 137,366 114,485 124,667 Provision for credit losses 7,402 4,281 1,353 Net interest income after provision for credit losses 129,964 110,204 123,314 Non-interest income 16,950 16,822 11,896 Non-interest expense 129,863 86,525 83,450 Income before income taxes 17,051 40,501 51,760 Income tax expense 16,255 10,556 14,091 Net income $ 796 $ 29,945 $ 37,669 Net income per common share - basic $ 0.02 $ 0.72 $ 0.86 Net income per common share - diluted $ 0.02 $ 0.72 $ 0.86 Weighted average basic shares outstanding 40,116,839 41,567,370 43,560,844 Weighted average diluted shares outstanding 40,173,403 41,628,660 43,638,616 51 At or For the Years Ended December 31, 2025 2024 2023 Selected Financial Ratios and Other Data: Performance Ratios: Return on assets (ratio of net income to average total assets) (1) (2) (3) 0.01 % 0.52 % 0.68 % Return on equity (ratio of net income to average equity) (1) (2) (3) 0.11 4.30 5.45 Interest rate spread (4) 1.92 1.45 1.82 Net interest margin (5) 2.55 2.10 2.35 Dividend payout ratio (6) NM 72.89 60.51 Efficiency ratio (7) (8) 84.15 65.90 61.11 Non-interest expense to average total assets 2.29 1.51 1.50 Average interest-earning assets to average interest-bearing liabilities 130.14 128.77 133.01 Average equity to average total assets 12.57 12.14 12.44 Asset Quality Ratios: Non-performing assets to total assets 0.28 0.36 0.20 Non-performing loans to total loans (9) (10) 0.42 0.51 0.27 Allowance for credit losses to total non-performing loans (11) 236.42 227.72 328.30 Allowance for credit losses to total loans held-for-investment, net (12) 0.99 0.87 0.89 Capital Ratio: Tier 1 capital (to adjusted assets) 12.24 12.11 12.58 Other Data: Number of full service offices 37 37 39 Full time equivalent employees 372 359 401 (1) The year ended December 31, 2025, included a $41.0 million non-cash, non-tax deductible goodwill impairment charge and $580,000 additional tax expense related to options that expired in May 2025.
The Company continues to maintain an adequate liquidity position and expects to have sufficient funds available to meet current commitments in the normal course of business. 65 The Company has a diversified deposit base, with long-standing client relationships across multiple customer segments providing stable funding. Government deposits are collateralized by assets or letters of credit issued by the FHLBNY.
The Company continues to maintain an adequate liquidity position and expects to have sufficient funds available to meet current commitments in the normal course of business. The Company has a diversified deposit base, with long-standing client relationships across multiple customer segments providing stable funding. Government deposits are collateralized by assets or letters of credit issued by the FHLBNY.
Net income for the year ended December 31, 2024 included a $3.4 million, or $0.06 per share, gain on sale of property, additional tax expense of $795,000, or $0.02 per share, related to options that expired in June 2024, and severance expense of $683,000, or $0.01 per share, related to severance expense.
Net income for the year ended December 31, 2024 included a $3.4 million, or $0.06 per share, gain on the sale of property, additional tax expense of $795,000, or $0.02 per share, related to options that expired in June 2024, and severance expense of $683,000, or $0.01 per share, related to employee severance.
We identified our policy on the allowance for credit losses on loans to be a critical accounting policy because management makes subjective and/or complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions.
We identified our policy on the allowance for credit losses on loans to be a critical accounting policy because management makes subjective and/or complex judgments about matters that are uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions.
In addition, the OCC, as an integral part of their examination process, will review our allowance for credit losses on loans and may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.
In addition, the OCC, as an integral part of its examination process, will review our allowance for credit losses on loans and may require us to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.
Individually impaired loans that have no impairment losses are not considered for collective allowances described earlier. 52 We have a concentration of loans secured by real property located in New York, New Jersey, and, to a lesser extent, eastern Pennsylvania.
Individually impaired loans that have no impairment losses are not considered for collective allowances described earlier. We have a concentration of loans secured by real property located in New York, New Jersey, and, to a lesser extent, eastern Pennsylvania.
U.S. GAAP generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation. The effect of inflation is reflected in the increased cost of our operations. Unlike industrial companies, our assets and liabilities are primarily monetary in nature.
GAAP generally requires the measurement of financial position and operating results in terms of historical dollars without consideration for changes in the relative purchasing power of money over time due to inflation. The effect of inflation is reflected in the increased cost of our operations. Unlike industrial companies, our assets and liabilities are primarily monetary in nature.
The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning assets and off-balance sheet items to broad risk categories. At December 31, 2024, both Northfield Bank and Northfield Bancorp exceeded all regulatory capital requirements and are considered “well capitalized” under regulatory guidelines. See “Item 1.
The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning assets and off-balance sheet items to broad risk categories. At December 31, 2025, both Northfield Bank and Northfield Bancorp exceeded all regulatory capital requirements and are considered “well capitalized” under regulatory guidelines. See “Item 1.
As part of our ongoing asset-liability management, we currently use the following strategies to manage our interest rate risk: • originating multifamily loans and commercial real estate loans that generally have shorter maturities than one-to-four family residential real estate loans and have higher interest rates that generally reset from five to ten years; • investing in investment grade corporate securities and mortgage-backed securities; and • obtaining general financing through lower-cost core deposits, brokered deposits, longer-term FHLB advances, and repurchase agreements.
As part of our ongoing asset-liability management, we currently use the following strategies to manage our interest rate risk: • originating multifamily loans and commercial real estate loans that generally have shorter maturities than one-to-four family residential real estate loans and have higher interest rates that generally reset from five to ten years; • investing in investment grade corporate securities and REMICs; and • obtaining general financing through lower-cost core deposits, brokered deposits, shorter and longer-term FHLB advances, and repurchase agreements.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average total interest-earning assets. 58 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
(4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest margin represents net interest income divided by average total interest-earning assets. 60 Rate/Volume Analysis The following table presents the effects of changing rates and volumes on our net interest income for the years indicated.
Although we believe we have established and maintained the allowance for credit losses at adequate levels, changes may be necessary if future economic or other conditions differ substantially from our estimation of the current operating environment.
Although we believe we have established and maintain the allowance for credit losses at adequate levels, changes may be necessary if future economic or other conditions differ substantially from our estimation of the current operating environment.
In the event of a 200 basis point decrease or less, our projected net interest income should decrease by no more than 10% in year one and 20% in year two, and in the event of a 400 basis point increase or less, our projected net interest income should decrease by no more than 39% in year one and 26% in year two.
In the event of a 200 basis point decrease or less, our projected net interest income should decrease by no more than 10% in year one and 20% in year two, and in the event of a 400 basis point increase or less, our projected net interest income should decrease by no more than 39% in year one and 24% in year two.
The following table details the five Moody's scenarios utilized in determining the allowance for credit losses on loans at December 31, 2024, and weightings of each scenario: Model Scenario Moody's Scenario Description Weight S0 Upside - 4th Percentile 4% S1 Upside - 10th Percentile 10% S3 Downside - 90th Percentile 10% S4 Downside - 96th Percentile 4% Baseline Baseline Scenario 72% If we placed 100% weighting on the baseline scenario, the quantitative allowance for credit losses at December 31, 2024 would have been approximately $2.8 million lower.
The following table details the five Moody's scenarios utilized in determining the allowance for credit losses on loans at December 31, 2025, and weightings of each scenario: Model Scenario Moody's Scenario Description Weight S0 Upside - 4th Percentile 4% S1 Upside - 10th Percentile 10% S3 Downside - 90th Percentile 10% S4 Downside - 96th Percentile 4% Baseline Baseline Scenario 72% If we placed 100% weighting on the baseline scenario, the quantitative allowance for credit losses at December 31, 2025 would have been approximately $1.8 million lower.
The geographic locations of the properties collateralizing our office-related loans are as follows: 49.9% in New York, 48.6% in New Jersey and 1.5% in Pennsylvania.
The geographic locations of the properties collateralizing our office-related loans are: 49.9% in New York, 48.6% in New Jersey and 1.5% in Pennsylvania.
Net charge-offs were $6.6 million for the year ended December 31, 2024, as compared to net charge-offs of $6.4 million for the year ended December 31, 2023, and included charge-offs of $5.5 million and $6.2 million on small business unsecured commercial and industrial loans for the years ended December 31, 2024 and 2023, respectively.
Net charge-offs were $4.4 million for the year ended December 31, 2025, as compared to net charge-offs of $6.6 million for the year ended December 31, 2024, which included charge-offs of $4.2 million and $5.5 million on small business unsecured commercial and industrial loans for the years ended December 31, 2025 and 2024, respectively.
Conversely, if we removed the upside scenarios and reallocated the weights from S0 to S4 and S1 to S3, the allowance for credit losses would have increased approximately $2.8 million. These forecasts revert to our long-term historical average loss rate after a 24-month forecasting period.
Conversely, if we removed the upside scenarios and reallocated the weights from S0 to S4 and S1 to S3, the allowance for credit losses would have increased approximately $1.9 million. These forecasts revert to our long-term historical average loss rate after a 24-month forecasting period.
The stress scenarios include $896.5 million of uninsured deposit outflow. Northfield Bank continues to maintain significant liquidity and capital levels under all stress scenarios. Northfield Bancorp is a separate legal entity from Northfield Bank and must provide for its own liquidity to fund dividend payments, stock repurchases, and other corporate items.
The stress scenarios include $952.9 million of uninsured deposit outflow. Northfield Bank continues to maintain significant liquidity and capital levels under all stress scenarios. Northfield Bancorp is a separate legal entity from Northfield Bank and must provide for its own liquidity to fund dividend payments, stock repurchases, and other corporate items.
Downward adjustments to appraisal values, primarily to reflect “quick sale” discounts, are generally recorded as specific reserves within the allowance for credit losses. The allowance for credit losses to total loans held-for-investment, net, was 0.87% at December 31, 2024, as compared to 0.89% at December 31, 2023.
Downward adjustments to appraisal values, primarily to reflect “quick sale” discounts, are generally recorded as specific reserves within the allowance for credit losses. The allowance for credit losses to total loans held-for-investment, net, was 0.99% at December 31, 2025, as compared to 0.87% at December 31, 2024.
At December 31, 2024 and December 31, 2023, we were in compliance with all Board-approved policies with respect to interest rate risk management. 64 Certain shortcomings are inherent in the methodologies used in determining interest rate risk through changes in net portfolio value and net interest income.
At December 31, 2025 and December 31, 2024, we were in compliance with all Board-approved policies with respect to interest rate risk management. 66 Certain shortcomings are inherent in the methodologies used in determining interest rate risk through changes in net portfolio value and net interest income.
During the year ended December 31, 2024, the Company recorded net charge-offs of $6.6 million, as compared to net charge-offs of $6.4 million for the year ended December 31, 2023, and net charge-offs of $838,000 for the year ended December 31, 2022. Charge-offs in 2024 and 2023 were primarily related to small business unsecured commercial and industrial loans.
During the year ended December 31, 2025, the Company recorded net charge-offs of $4.4 million, as compared to net charge-offs of $6.6 million for the year ended December 31, 2024, and net charge-offs of $6.4 million for the year ended December 31, 2023. Charge-offs in 2025, 2024 and 2023 were primarily related to small business unsecured commercial and industrial loans.
In January 2024, the Company borrowed $300 million from the Federal Reserve Bank through the BTFP at favorable terms and conditions and invested the proceeds at higher rates. These borrowings were repaid in full as of December 31, 2024. 56 Provision for Credit Losses.
In January 2024, the Company borrowed $300 million from the Federal Reserve Bank through the Bank Term Funding Program at favorable terms and conditions and invested the proceeds at higher rates. These borrowings were repaid in full as of December 31, 2024. Provision for Credit Losses.
We believe that the most critical accounting policies upon which our financial condition and results of operation depend, and which involve the most complex subjective decisions or assessments, are the following: Allowance for Credit Losses on Loans. The Company estimates and recognize an allowance for lifetime expected credit losses for loans and other financial assets measured at amortized cost.
We believe that the most critical accounting policy upon which our financial condition and results of operation depend, and which involves the most complex subjective decisions or assessments, is the following: Allowance for Credit Losses on Loans. The Company estimates and recognize an allowance for lifetime expected credit losses for loans and other financial assets measured at amortized cost.
The Company’s primary source of liquidity is the receipt of dividend payments from the Bank in accordance with applicable regulatory requirements. At December 31, 2024, Northfield Bancorp (unconsolidated) had liquid assets of $21.5 million. Northfield Bank and Northfield Bancorp are both subject to various regulatory capital requirements, including a risk-based capital measure.
The Company’s primary source of liquidity is the receipt of dividend payments from the Bank in accordance with applicable regulatory requirements. At December 31, 2025, Northfield Bancorp (unconsolidated) had liquid assets of $11.9 million. Northfield Bank and Northfield Bancorp are both subject to various regulatory capital requirements, including a risk-based capital measure.
Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 For a discussion of our results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022, see “Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations” Comparison of Operating Results, included in our 2023 Form 10-K, filed with the SEC on February 29, 2024. 57 Average Balances and Yields The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated.
Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 For a discussion of our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, see “Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations” Comparison of Operating Results, included in our 2024 Form 10-K, filed with the SEC on March 3, 2025. 59 Average Balances and Yields The following table sets forth average balance sheets, average yields and costs, and certain other information for the years indicated.
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 the Bank’s commercial real estate portfolio under severe, adverse economic conditions.
Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which includes 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.
At December 31, 2024, total non-performing loans included $2.7 million of modified loans to borrowers experiencing financial difficulty and $2.9 million of TDR loans that existed prior to adoption of ASU 2022-02 on January 1, 2023.
At December 31, 2024, total non-performing loans included $2.7 million of modified loans to borrowers experiencing financial difficulty and $2.9 million of TDR loans that existed prior to the adoption of ASU 2022-02.
At the same time, net charge-offs have remained low at 0.16% of average loans outstanding for the year ended December 31, 2024, as compared to 0.15% for the year ended December 31, 2023, and 0.02% for the year ended December 31, 2022. 59 Non-performing Assets and Delinquent Loans.
At the same time, net charge-offs have remained low at 0.11% of average loans outstanding for the year ended December 31, 2025, as compared to 0.16% for the year ended December 31, 2024, and 0.15% for the year ended December 31, 2023. 61 Non-performing Assets and Delinquent Loans.
Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage-related securities, other securities and bonds and loans, generally have longer maturities than our liabilities, which consist primarily of deposits and wholesale borrowings.
A majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage-related securities, other securities and bonds and loans, generally have longer maturities than our liabilities, which consist primarily of deposits and wholesale borrowings.
At December 31, 2024, our largest office-related loan had a principal balance of $89.1 million (with a net active principal balance for the Bank of $29.7 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.
At December 31, 2025, our largest office-related loan had a principal balance of $86.4 million (with a net active principal balance for the Bank of $28.8 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms.
At December 31, 2024, multifamily loans that have some form of rent stabilization or rent control totaled approximately $437.7 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%.
At December 31, 2025, multifamily loans that have some form of rent stabilization or rent control totaled approximately $418.8 million, or 10.9% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 50%.
We seek to maintain a ratio of liquid assets (not subject to pledge or encumbered) as a percentage of deposits and borrowings of 35% or greater. At December 31, 2024, this ratio was 49.39%.
We seek to maintain a ratio of liquid assets (not subject to pledge or encumbered) as a percentage of deposits and borrowings of 35% or greater. At December 31, 2025, this ratio was 56.29%.
At December 31, 2024, office-related loans represented $184.0 million, or approximately 5% of our total loan portfolio, with an average balance of $1.8 million (although we have originated these types of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 42% were owner-occupied.
At December 31, 2025, office-related loans represented $174.7 million, or 4.5% of our total loan portfolio, with an average balance of $1.8 million (although we have originated these types of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 58%. Approximately 39% were owner-occupied.
Because of the of the high degree of judgment involved in management's estimates of the allowance for credit losses, the subjectivity of assumptions used, and the potential for changes in the forecasted economic environment, there is inherent uncertainty in such estimates. Changes in these estimates could significantly impact the allowance for credit losses on loans.
Because of the of the high degree of judgment involved in management's estimates of the allowance for credit losses, the subjectivity of assumptions used, and the potential for changes in the forecasted economic environment, there is uncertainty in such estimates.
Allowance for Individually Evaluated Loans The Company measures specific reserves for individual loans that do not share common risk characteristics with other loans, consisting of all loans designated as TDRs prior to the adoption of ASU 2022-02 and non-accrual loans with an outstanding balance of $500,000 or greater.
Changes in these estimates could significantly impact the allowance for credit losses on loans. 54 Allowance for Individually Evaluated Loans The Company measures specific reserves for individual loans that do not share common risk characteristics with other loans, consisting of all loans designated as TDRs prior to the adoption of ASU 2022-02 and non-accrual loans with an outstanding balance of $500,000 or greater.
Among other things, these adjustments include and account for differences in: (i) changes in lending policies and procedures; (ii) changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of our portfolio, including the condition of various market segments; (iii) changes in the experience, ability and depth of lending management and other relevant staff; (iv) changes in the quality of our loan review system; (v) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (vi) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our existing portfolio. 51 The Company utilizes a two-year reasonable and supportable forecast period after which estimated losses revert to historical loss experience immediately for the remaining life of the loan.
Among other things, these adjustments include and account for differences in: (i) changes in lending policies and procedures; (ii) changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of our portfolio, including the condition of various market segments; (iii) changes in the experience, ability and depth of lending management and other relevant staff; (iv) changes in the quality of our loan review system; (v) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (vi) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our existing portfolio.
The Company accreted interest income related to PCD loans of $1.3 million for both years ended December 31, 2024 and December 31, 2023. Net interest income for the year ended December 31, 2024, included loan prepayment income of $863,000 as compared to $1.6 million for the year ended December 31, 2023. Interest Expense.
The Company accreted interest income related to PCD loans of $945,000 for the year ended December 31, 2025, as compared to $1.3 million for the year ended December 31, 2024. Net interest income for the year ended December 31, 2025, included loan prepayment income of $1.4 million as compared to $863,000 for the year ended December 31, 2024. Interest Expense.
The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity. Deposits increased $260.0 million, or 6.70%, to $4.14 billion at December 31, 2024, as compared to $3.88 billion at December 31, 2023.
The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity. Deposits, excluding brokered deposits, increased $100.2 million, or 2.6%, to $3.98 billion at December 31, 2025, as compared to $3.88 billion at December 31, 2024.
Generally, loans, excluding PCD loans, are placed on non-accruing status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist.
At December 31, 2025 and 2024, the Company had no assets acquired through foreclosure. 62 Generally, loans, excluding PCD loans, are placed on non-accrual status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist.
(6) Dividend payout ratio is calculated as total dividends declared for the year divided by net income for the year. (7) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(5) The net interest margin represents net interest income as a percent of average interest-earning assets for the period. (6) Dividend payout ratio is calculated as total dividends declared for the year divided by net income for the year. (7) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
At December 31, 2024, our largest rent-regulated loan had a principal balance of $16.8 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.
At December 31, 2025, our largest rent-regulated loan had a principal balance of $16.4 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios.
Overview Net income was $29.9 million, or $0.72 per diluted common share, and $37.7 million, or $0.86 per diluted common share, for the years ended December 31, 2024 and December 31, 2023, respectively.
Overview Net income was $796,000, or $0.02 per diluted common share, and $29.9 million, or $0.72 per diluted common share, for the years ended December 31, 2025 and December 31, 2024, respectively.
The following table details non-performing assets consisting of non-performing loans held-for-investment and non-performing loans held-for-sale at December 31, 2024 and 2023 (in thousands): December 31, 2024 2023 Non-accrual loans: Held-for-investment $ 14,264 $ 10,115 Loans 90 days or more past due and still accruing: Held-for-investment 1,186 1,318 Total non-performing loans held-for-investment 15,450 11,433 Other non-performing loans held-for-sale 4,897 — Total non-performing loans 20,347 11,433 Total non-performing assets $ 20,347 $ 11,433 Accruing loans 30 to 89 days delinquent $ 9,336 $ 8,683 The following table details non-performing loans by loan type at December 31, 2024 and 2023 (in thousands): December 31, 2024 2023 Held-for-investment Real estate loans: Multifamily $ 2,609 $ 2,709 Commercial 4,578 6,491 One-to-four family residential — 104 Home equity and lines of credit 1,270 499 Commercial and industrial 5,807 305 Other — 7 Total non-accrual loans held-for-investment 14,264 10,115 Loans delinquent 90 days or more and still accruing: Real estate loans: Multifamily $ 164 $ 201 One-to-four family residential 882 406 Home equity and lines of credit 140 711 Total loans delinquent 90 days or more and still accruing held-for-investment 1,186 1,318 Non-performing loans held-for-sale Commercial real estate 4,397 — Commercial and industrial 500 — Total non-performing loans held-for-sale 4,897 — Total non-performing loans $ 20,347 $ 11,433 Total non-performing assets $ 20,347 $ 11,433 The Company's non-performing loans at December 31, 2024, totaled $20.3 million, or 0.51%, of total loans, and include $4.9 million of loans held-for-sale, as compared to $11.4 million, or 0.27%, at December 31, 2023.
The following table details non-performing assets consisting of non-performing loans held-for-investment and non-performing loans held-for-sale at December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Non-accrual loans: Held-for-investment $ 15,210 $ 14,264 Loans 90 days or more past due and still accruing: Held-for-investment 925 1,186 Total non-performing loans held-for-investment 16,135 15,450 Other non-performing loans held-for-sale — 4,897 Total non-performing loans 16,135 20,347 Total non-performing assets $ 16,135 $ 20,347 Accruing loans 30 to 89 days delinquent $ 11,424 $ 9,336 The following table details non-performing loans by loan type at December 31, 2025 and 2024 (in thousands): December 31, 2025 2024 Held-for-investment Real estate loans: Multifamily $ 3,688 $ 2,609 Commercial mortgage 5,012 4,578 Home equity and lines of credit 1,778 1,270 Commercial and industrial 4,732 5,807 Total non-accrual loans held-for-investment 15,210 14,264 Loans delinquent 90 days or more and still accruing: Real estate loans: Multifamily $ — $ 164 Commercial mortgage 51 — One-to-four family residential 863 882 Home equity and lines of credit 7 140 Other 4 — Total loans delinquent 90 days or more and still accruing held-for-investment 925 1,186 Non-performing loans held-for-sale Commercial mortgage — 4,397 Commercial and industrial — 500 Total non-performing loans held-for-sale — 4,897 Total non-performing loans $ 16,135 $ 20,347 Total non-performing assets $ 16,135 $ 20,347 The Company's non-performing loans at December 31, 2025, totaled $16.1 million, or 0.42% of total loans, as compared to $20.3 million, or 0.51% of total loans at December 31, 2024.
Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies. 55 Total stockholders’ equity increased by $5.3 million to $704.7 million at December 31, 2024, from $699.4 million at December 31, 2023.
Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies. Total stockholders’ equity decreased by $14.6 million to $690.1 million at December 31, 2025, from $704.7 at December 31, 2024.
The increase was attributable to net income of $29.9 million for the year ended December 31, 2024, a $12.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $3.6 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $21.8 million in dividend payments. 48 Selected Financial Data The summary information presented below at the dates or for each of the years presented is derived in part from our consolidated financial statements.
The decrease was attributable to $15.0 million in stock repurchases and $21.2 million in dividend payments, partially offset by a $16.1 million decrease in accumulated other comprehensive loss associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio, a $4.7 million increase in equity award activity, and net income of $796,000 for the year ended December 31, 2025. 50 Selected Financial Data The summary information presented below at the dates or for each of the years presented is derived in part from our consolidated financial statements.
The following table sets forth activity in our allowance for credit losses, by loan type, at December 31, for the years indicated (in thousands): Real estate loans Commercial (1) One-to-four Family Residential Construction and Land Home Equity and Lines of Credit Commercial and Industrial Other PCD Total Allowance for Credit Losses 2021 $ 26,785 $ 3,545 $ 169 $ 560 $ 3,173 $ 9 $ 4,732 $ 38,973 Provision/(benefit) for credit losses 2,876 359 155 287 1,243 (12) (426) 4,482 Recoveries 102 32 — 19 144 12 178 487 Charge-offs (278) — — — (446) — (601) (1,325) 2022 29,485 3,936 324 866 4,114 9 3,883 42,617 Provision/(benefit) for credit losses (6,301) (651) (175) 838 8,445 (3) (800) 1,353 Recoveries 71 — — 1 63 — 10 145 Charge-offs — — — — (6,572) — (8) (6,580) 2023 23,255 3,285 149 1,705 6,050 6 3,085 37,535 Provision/(benefit) for credit losses (2,227) (1,049) (46) 457 7,329 (2) (181) 4,281 Recoveries 57 9 — 92 218 — — 376 Charge-offs (136) — — — (6,873) — — (7,009) 2024 $ 20,949 $ 2,245 $ 103 $ 2,254 $ 6,724 $ 4 $ 2,904 $ 35,183 (1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.
At December 31, 2024, the Company had 20 loans classified as individually impaired and recorded $1.3 million of specific reserves on three of the 20 impaired loans. 63 The following table sets forth activity in our allowance for credit losses, by loan type, at December 31, for the years indicated (in thousands): Real estate loans Commercial (1) One-to-four Family Residential Construction and Land Home Equity and Lines of Credit Commercial and Industrial Other PCD Total Allowance for Credit Losses 2022 $ 29,485 $ 3,936 $ 324 $ 866 $ 4,114 $ 9 $ 3,883 $ 42,617 Provision/(benefit) for credit losses (6,301) (651) (175) 838 8,445 (3) (800) 1,353 Recoveries 71 — — 1 63 — 10 145 Charge-offs — — — — (6,572) — (8) (6,580) 2023 23,255 3,285 149 1,705 6,050 6 3,085 37,535 Provision/(benefit) for credit losses (2,227) (1,049) (46) 457 7,329 (2) (181) 4,281 Recoveries 57 9 — 92 218 — — 376 Charge-offs (136) — — — (6,873) — — (7,009) 2024 20,949 2,245 103 2,254 6,724 4 2,904 35,183 Provision/(benefit) for credit losses 3,471 (32) (1) 626 3,315 — 23 7,402 Recoveries 62 — — — 1,143 — 37 1,242 Charge-offs — — — — (5,340) — (343) (5,683) 2025 $ 24,482 $ 2,213 $ 102 $ 2,880 $ 5,842 $ 4 $ 2,621 $ 38,144 (1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.
This total includes fully collateralized uninsured government deposits and intercompany deposits of $923.8 million, leaving estimated uninsured deposits of approximately $896.5 million, or 21.7%, of total deposits as of December 31, 2024. At December 31, 2023, estimated uninsured deposits totaled $869.9 million, or 22.4% of total deposits.
This total includes fully collateralized uninsured government deposits and intercompany deposits of $1.03 billion, leaving estimated uninsured deposits of approximately $952.9 million, or 23.7%, of total deposits. At December 31, 2024, estimated uninsured deposits, excluding fully collateralized uninsured governmental deposits and intercompany deposits of $923.8 million, totaled $896.5 million, or 21.7% of total deposits.
In the event of a 400 basis point increase in interest rates, we would experience an 18.29% decrease in estimated net portfolio value, a 20.93% decrease in net interest income in year one and a 5.16% decrease in net interest income in year two.
In the event of a 400 basis point increase in interest rates, we would experience a 20.00% decrease in estimated net portfolio value, a 13.79% decrease in net interest income in year one and a 0.80% increase in net interest income in year two.
For the Years Ended December 31, 2024 2023 2022 Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Loans (1) $ 4,106,641 $ 183,932 4.48 % $ 4,248,355 $ 181,638 4.28 % $ 4,077,175 $ 160,911 3.95 % Mortgage-backed securities (2) 831,681 29,406 3.54 682,416 14,708 2.16 863,897 12,461 1.44 Other securities (2) 293,776 11,459 3.90 238,722 5,087 2.13 285,385 4,325 1.52 FHLBNY stock 38,350 3,704 9.66 40,684 3,113 7.65 22,541 1,174 5.21 Interest-earning deposits 189,379 9,407 4.97 97,975 4,249 4.34 85,485 817 0.96 Total interest-earning assets 5,459,827 237,908 4.36 5,308,152 208,795 3.93 5,334,483 179,688 3.37 Non-interest-earning assets 271,162 247,050 259,891 Total assets $ 5,730,989 $ 5,555,202 $ 5,594,374 Interest-bearing liabilities: Savings, NOW, and money market accounts $ 2,449,037 $ 50,228 2.05 % $ 2,463,455 $ 30,408 1.23 % $ 2,898,048 $ 3,610 0.12 % Certificates of deposit 746,629 32,044 4.29 571,041 18,345 3.21 525,557 6,679 1.27 Total interest-bearing deposits 3,195,666 82,272 2.57 3,034,496 48,753 1.61 3,423,605 10,289 0.30 Borrowings 982,994 37,822 3.85 895,229 32,055 3.58 413,697 9,296 2.25 Subordinated debt 61,322 3,329 5.43 61,169 3,320 5.43 33,436 1,797 5.37 Total interest-bearing liabilities 4,239,982 123,423 2.91 3,990,894 84,128 2.11 3,870,738 21,382 0.55 Non-interest-bearing deposits 694,543 770,939 907,603 Accrued expenses and other liabilities 100,704 102,563 102,807 Total liabilities 5,035,229 4,864,396 4,881,148 Stockholders’ equity 695,760 690,806 713,226 Total liabilities and stockholders’ equity $ 5,730,989 $ 5,555,202 $ 5,594,374 Net interest income $ 114,485 $ 124,667 $ 158,306 Net interest rate spread (3) 1.45 % 1.82 % 2.82 % Net interest-earning assets (4) $ 1,219,845 $ 1,317,258 $ 1,463,745 Net interest margin (5) 2.10 % 2.35 % 2.97 % Average interest-earning assets to interest-bearing liabilities 128.77 % 133.01 % 137.82 % (1) Includes non-accruing loans.
For the Years Ended December 31, 2025 2024 2023 Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate Average Outstanding Balance Interest Average Yield/ Rate (Dollars in thousands) Interest-earning assets: Loans (1) $ 3,931,319 $ 184,832 4.70 % $ 4,106,641 $ 183,932 4.48 % $ 4,248,355 $ 181,638 4.28 % Mortgage-backed securities (2) 1,247,621 55,608 4.46 831,681 29,406 3.54 682,416 14,708 2.16 Other securities (2) 69,474 2,000 2.88 293,776 11,459 3.90 238,722 5,087 2.13 FHLBNY stock 39,691 3,128 7.88 38,350 3,704 9.66 40,684 3,113 7.65 Interest-earning deposits 100,738 3,528 3.50 189,379 9,407 4.97 97,975 4,249 4.34 Total interest-earning assets 5,388,843 249,096 4.62 5,459,827 237,908 4.36 5,308,152 208,795 3.93 Non-interest-earning assets 280,950 271,162 247,050 Total assets $ 5,669,793 $ 5,730,989 $ 5,555,202 Interest-bearing liabilities: Savings, NOW, and money market accounts $ 2,516,697 $ 48,970 1.95 % $ 2,449,037 $ 50,228 2.05 % $ 2,463,455 $ 30,408 1.23 % Certificates of deposit 809,542 29,915 3.70 746,629 32,044 4.29 571,041 18,345 3.21 Total interest-bearing deposits 3,326,239 78,885 2.37 3,195,666 82,272 2.57 3,034,496 48,753 1.61 Borrowings 753,134 29,525 3.92 982,994 37,822 3.85 895,229 32,055 3.58 Subordinated debt 61,546 3,320 5.39 61,322 3,329 5.43 61,169 3,320 5.43 Total interest-bearing liabilities 4,140,919 111,730 2.70 4,239,982 123,423 2.91 3,990,894 84,128 2.11 Non-interest-bearing deposits 722,711 694,543 770,939 Accrued expenses and other liabilities 93,373 100,704 102,563 Total liabilities 4,957,003 5,035,229 4,864,396 Stockholders’ equity 712,790 695,760 690,806 Total liabilities and stockholders’ equity $ 5,669,793 $ 5,730,989 $ 5,555,202 Net interest income $ 137,366 $ 114,485 $ 124,667 Net interest rate spread (3) 1.92 % 1.45 % 1.82 % Net interest-earning assets (4) $ 1,247,924 $ 1,219,845 $ 1,317,258 Net interest margin (5) 2.55 % 2.10 % 2.35 % Average interest-earning assets to interest-bearing liabilities 130.14 % 128.77 % 133.01 % (1) Includes non-accruing loans.
The increase in deposits, excluding brokered deposits, was attributable to increases of $81.9 million in time deposits and $66.3 million in transaction accounts, partially offset by decreases of $30.0 million in money market accounts and $21.6 million in savings accounts.
The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $164.4 million in transaction accounts, and $3.3 million in money market accounts, partially offset by decreases of $21.9 million in time deposits, and $45.6 million in savings accounts. Growth in transaction accounts was primarily due to new municipal relationships and new commercial relationships.
The increase was attributable to net income of $29.9 million for the year ended December 31, 2024, a $12.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $3.6 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $21.8 million in dividend payments.
The decrease was attributable to $15.0 million in stock repurchases and $21.2 million in dividend payments, partially offset by a $16.1 million decrease in accumulated other comprehensive loss associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio, a $4.7 million increase in equity award activity, and net income of $796,000 for the year ended December 31, 2025.
Significant variances from the prior year are as follows: a $10.2 million decrease in net interest income, a $2.9 million increase in the provision for credit losses on loans, a $4.9 million increase in non-interest income, a $3.1 million increase in non-interest expense, and a $3.5 million decrease in income tax expense.
Significant variances from the prior year are as follows: a $22.9 million increase in net interest income, a $3.1 million increase in the provision for credit losses on loans, a $43.3 million increase in non-interest expense, which includes a $41.0 million non-cash, non-tax deductible goodwill impairment charge, and a $5.7 million increase in income tax expense. Interest Income.
(8) The year ended December 31, 2024, includes $3.4 million, pre-tax, of gain on sale of property, and $683,000, pre-tax, of severance costs. The year ended December 31, 2023, includes $440,000, pre-tax, of severance costs.
(8) The year ended December 31, 2025, included a $41.0 million non-cash, non-tax deductible goodwill impairment charge. The year ended December 31, 2024, included a $3.4 million, pre-tax, gain on the sale of property, and $683,000, pre-tax, of severance expense. The year ended December 31, 2023, includes $440,000, pre-tax, of severance expense.
Year Ended December 31, Year Ended December 31, 2024 vs. 2023 2023 vs. 2022 Total Total Increase (Decrease) Due to Increase Increase (Decrease) Due to Increase Volume Rate (Decrease) Volume Rate (Decrease) (Dollars in thousands) Interest-earning assets: Loans $ (5,383) $ 7,677 $ 2,294 $ 6,944 $ 13,783 $ 20,727 Mortgage-backed securities 3,742 10,956 14,698 (1,661) 3,908 2,247 Other securities 1,385 4,987 6,372 (514) 1,276 762 FHLBNY stock (166) 757 591 1,225 714 1,939 Interest-earning deposits 4,463 695 5,158 136 3,296 3,432 Total interest-earning assets 4,041 25,072 29,113 6,130 22,977 29,107 Interest-bearing liabilities: Savings, NOW and money market accounts (177) 19,997 19,820 (459) 27,257 26,798 Certificates of deposit 6,546 7,153 13,699 625 11,041 11,666 Total deposits 6,369 27,150 33,519 166 38,298 38,464 Borrowings 3,376 2,400 5,776 16,963 7,319 24,282 Total interest-bearing liabilities 9,745 29,550 39,295 17,129 45,617 62,746 Change in net interest income $ (5,704) $ (4,478) $ (10,182) $ (10,999) $ (22,640) $ (33,639) Asset Quality PCD Loans (Held-for-Investment) Based on a 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 of $9.2 million at December 31, 2024 and $9.9 million at December 31, 2023 as accruing, even though they may be contractually past due.
Year Ended December 31, Year Ended December 31, 2025 vs. 2024 2024 vs. 2023 Total Total Increase (Decrease) Due to Increase Increase (Decrease) Due to Increase Volume Rate (Decrease) Volume Rate (Decrease) (Dollars in thousands) Interest-earning assets: Loans $ (6,189) $ 7,089 $ 900 $ (5,383) $ 7,677 $ 2,294 Mortgage-backed securities 14,986 11,216 26,202 3,742 10,956 14,698 Other securities (7,958) (1,501) (9,459) 1,385 4,987 6,372 FHLBNY stock 118 (694) (576) (166) 757 591 Interest-earning deposits (4,075) (1,804) (5,879) 4,463 695 5,158 Total interest-earning assets (3,118) 14,306 11,188 4,041 25,072 29,113 Interest-bearing liabilities: Savings, NOW and money market accounts 1,471 (2,729) (1,258) (177) 19,997 19,820 Certificates of deposit 3,278 (5,407) (2,129) 6,546 7,153 13,699 Total deposits 4,749 (8,136) (3,387) 6,369 27,150 33,519 Borrowings (9,283) 977 (8,306) 3,376 2,400 5,776 Total interest-bearing liabilities (4,534) (7,159) (11,693) 9,745 29,550 39,295 Change in net interest income $ 1,416 $ 21,465 $ 22,881 $ (5,704) $ (4,478) $ (10,182) Asset Quality PCD Loans (Held-for-Investment) Based on a 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 of $8.3 million at December 31, 2025 and $9.2 million at December 31, 2024 as accruing, even though they may be contractually past due. 4.0% of PCD loans were past due 30 to 89 days, and 23.2% were past due 90 days or more, as compared to 2.1% and 24.9%, respectively, at December 31, 2024.
The increase was primarily due to a $2.8 million increase in employee compensation and benefits, primarily attributable to higher salary expense related to annual merit increases and higher medical expense. Partially offsetting the increase was a $461,000 decrease in stock compensation expense related to performance stock awards not expected to vest.
The remaining increase in non-interest expense was primarily due to a $2.0 million increase in employee compensation and benefits, primarily attributable to higher salary expense related to annual merit increases, an increase in headcount, and higher stock compensation expense as the prior year included a credit of $461,000 related to performance stock awards not expected to vest.
Depending on current market interest rates we then calculate what the net interest income would be for the same period under the assumption that interest rates experience an instantaneous and sustained increase of 100, 200, 300, or 400 basis points, or a decrease of 100, 200, 300 or 400 basis points, which is based on the current interest rate environment. 63 The following tables set forth, as of December 31, 2024 and December 31, 2023, our calculation of the estimated changes in our NPV, NPV ratio, and percent change in net interest income that would result from the designated instantaneous and sustained changes in interest rates (dollars in thousands).
Depending on current market interest rates we then calculate what the net interest income would be for the same period under the assumption that interest rates experience an instantaneous and sustained increase of 100, 200, 300, or 400 basis points, or a decrease of 100, 200, 300 or 400 basis points, which is based on the current interest rate environment.
The decrease in the coverage ratio from December 31, 2023 was primarily attributable to a decrease of $2.4 million, or 6.3%, in the allowance for credit losses from December 31, 2023 to December 31, 2024, offset by a decrease in the loan portfolio of $176.5 million, or 4.2%.
The increase in the coverage ratio from December 31, 2024 was primarily attributable to an increase of $3.0 million, or 8.4%, in the allowance for credit losses from December 31, 2024 to December 31, 2025, as well as a decrease in the loan portfolio of $165.5 million, or 4.1%.
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, the Company's ability to pay dividends, and overall profitability. 54 Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting increases for rent stabilized multifamily properties.
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, the Company's ability to pay dividends, and overall profitability.
PCD loans totaled $9.2 million and $9.9 million at December 31, 2024 and December 31, 2023, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction.
For further details on our rent-regulated multifamily portfolio see “Asset Quality”. 56 PCD loans totaled $8.3 million and $9.2 million at December 31, 2025 and December 31, 2024, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction.
The following table sets forth the total amounts of delinquencies for accruing loans that were 30 to 89 days past due by type and by amount at the dates indicated (in thousands): December 31, 2024 2023 Real estate loans: Multifamily $ 2,831 $ 740 Commercial 78 1,010 One-to-four family residential 2,407 3,339 Home equity and lines of credit 1,472 817 Commercial and industrial loans 2,545 2,767 Other loans 3 10 $ 9,336 $ 8,683 The increase in multifamily delinquent loans at December 31, 2024, as compared to December 31, 2023, was primarily due to two relationships totaling $2.4 million that became current subsequent to December 31, 2024.
The following table sets forth the total amounts of delinquencies for accruing loans that were 30 to 89 days past due by type and by amount at the dates indicated (in thousands): December 31, 2025 2024 Real estate loans: Multifamily $ 471 $ 2,831 Commercial mortgage 6,984 78 One-to-four family residential 1,124 2,407 Home equity and lines of credit 1,110 1,472 Commercial and industrial loans 1,735 2,545 Other loans — 3 $ 11,424 $ 9,336 The increase in delinquent commercial mortgage loans was primarily due to one loan which had an outstanding balance of $6.5 million and was 61 days past due at December 31, 2025.
The increase resulted from income earned on bank-owned life insurance for the year ended December 31, 2024, which was primarily due to the restructuring and enhancements in our bank-owned life insurance policies in the fourth quarter of 2024. FHLBNY stock decreased by $3.8 million, or 9.5%, to $35.9 million at December 31, 2024, from $39.7 million at December 31, 2023.
The increase resulted from income earned on bank-owned life insurance for the year ended December 31, 2025, which was primarily due to the restructuring and enhancements in our bank-owned life insurance policies into higher-yielding policies in the fourth quarter of 2024.
Allowance for Credit Losses The allowance for credit losses to non-performing loans decreased from 328.30% at December 31, 2023 to 227.72% at December 31, 2024.
Allowance for Credit Losses The allowance for credit losses to non-performing loans held-for-investment increased from 227.72% at December 31, 2024 to 236.42% at December 31, 2025.
The investment in the Small Business Administration Loan Fund is utilized by the Bank as part of its Community Reinvestment Act program. The increase in equity securities was primarily due to the purchase of money market mutual funds.
Equity securities are primarily comprised of an investment in a Small Business Administration (“SBA”) Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program.
In establishing its estimate of expected credit losses, the Company utilizes five externally-sourced forward-looking economic scenarios developed by Moody's Analytics (“Moody's”) so as to incorporate uncertainties related to the economic environment.
The Company utilizes a two-year reasonable and supportable forecast period after which estimated losses revert to historical loss experience immediately for the remaining life of the loan. In establishing its estimate of expected credit losses, the Company utilizes five externally-sourced forward-looking economic scenarios developed by Moody's Analytics (“Moody's”) so as to incorporate uncertainties related to the economic environment.
Significant variances from the prior year are as follows: a $10.2 million decrease in net interest income, a $2.9 million increase in the provision for credit losses on loans, a $4.9 million increase in non-interest income, a $3.1 million increase in non-interest expense, and a $3.5 million decrease in income tax expense. Interest Income.
Significant variances from the prior year are as follows: a $22.9 million increase in net interest income, a $3.1 million increase in the provision for credit losses on loans, a $43.3 million increase in non-interest expense, which includes a $41.0 million, or $1.03 per share, non-cash, non-tax deductible goodwill impairment charge, and a $5.7 million increase in income tax expense.
The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of mortgage-backed securities of $149.3 million, the average balance of interest-earning deposits in financial institutions of $91.4 million, and the average balance of other securities of $55.1 million, partially offset by a decrease in the average balance of loans of $141.7 million.
The decrease was primarily due to decreases in the average balance of loans of $175.3 million, the average balance of other securities of $224.3 million, and the average balance of interest-earning deposits in financial institutions of $88.6 million, partially offset by an increase in the average balance of mortgage-backed securities of $415.9 million.
Additionally, non-interest expense included an $837,000 increase in credit loss expense/(benefit) for off-balance sheet exposure due to a provision of $282,000 recorded during the year ended December 31, 2024, as compared to a benefit of $555,000 for the year ended December 31, 2023.
The decrease in credit loss expense/(benefit) for off-balance sheet exposure was due to a benefit of $228,000 recorded during the year ended December 31, 2025, as compared to a provision of $282,000 for the year ended December 31, 2024, due to a decrease in the pipeline of loans committed and awaiting closing.
During the year ended December 31, 2024, the Company repurchased 1.8 million of its common stock at an average price of $10.03 for a total of $18.1 million pursuant to the approved stock repurchase programs. As of December 31, 2024, the Company had no outstanding repurchase program.
During the year December 31, 2025, the Company repurchased 1.3 million shares of its common stock outstanding at an average price of $11.52 for a total of $15.0 million pursuant to the approved stock repurchase plans.
Net interest income for the year ended December 31, 2024, decreased $10.2 million, or 8.2%, to $114.5 million, from $124.7 million for the year ended December 31, 2023, primarily due to a 25 basis point decrease in net interest margin to 2.10% for the year ended December 31, 2024 from 2.35% for the year ended December 31, 2023.
Net interest income for the year ended December 31, 2025, increased $22.9 million, or 20.0%, to $137.4 million, from $114.5 million for the year ended December 31, 2024, primarily due to a 45 basis point increase in net interest margin to 2.55% for the year ended December 31, 2025 from 2.10% for the year ended December 31, 2024.
The Company recorded income tax expense of $10.6 million for the year ended December 31, 2024, compared to $14.1 million for the year ended December 31, 2023, with the decrease due to lower taxable income. The effective tax rate for the year ended December 31, 2024, was 26.1%, compared to 27.2% for the year ended December 31, 2023.
The Company recorded income tax expense of $16.3 million for the year ended December 31, 2025, compared to $10.6 million for the year ended December 31, 2024, with the increase due to higher taxable income.
For additional information, see Note 14 of the Notes to the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted ASU No. 2023-09. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”.
For additional information, see Note 14 of the Notes to the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted ASU No. 2024-03.
Interest expense increased $39.3 million, or 46.7%, to $123.4 million for the year ended December 31, 2024, as compared to $84.1 million for the year ended December 31, 2023.
Interest expense decreased $11.7 million, or 9.5%, to $111.7 million for the year ended December 31, 2025, as compared to $123.4 million for the year ended December 31, 2024.
Management continues to monitor the small business unsecured commercial and industrial loan portfolio, which totaled $28.9 million at December 31, 2024. Non-interest Income.
Management continues to monitor the small business unsecured commercial and industrial loan portfolio, which totaled $20.6 million at December 31, 2025. Non-interest Income. Non-interest income increased by $128,000, or 0.8%, to $17.0 million for the year ended December 31, 2025, from $16.8 million for the year ended December 31, 2024.
Interest income increased $29.1 million, or 13.9%, to $237.9 million for the year ended December 31, 2024, from $208.8 million for the year ended December 31, 2023, The increase in interest income was primarily due to a $151.7 million, or 2.9%, increase in the average balance of interest-earning assets coupled with a 43 basis point increase in yields on interest-earning assets, which increased to 4.36% for the year ended December 31, 2024, from 3.93% for the year ended December 31, 2023, due to the rising rate environment.
Interest income increased $11.2 million, or 4.7%, to $249.1 million for the year ended December 31, 2025, from $237.9 million for the year ended December 31, 2024, The increase in interest income was primarily due to a 26 basis point increase in yields on interest-earning assets, which increased to 4.62% for the year ended December 31, 2025, from 4.36% for the year ended December 31, 2024, due to higher yields on mortgage-backed securities and loans, partially offset by a $71.0 million, or 1.3%, decrease in the average balance of interest-earning assets.
The decrease in FHLBNY stock directly correlates with lower short-term borrowing balances at December 31, 2024, as compared to December 31, 2023. Other assets decreased $1.6 million, or 3.4%, to $46.9 million at December 31, 2024, from $48.6 million at December 31, 2023.
FHLBNY stock increased by $10.7 million, or 29.7%, to $46.6 million at December 31, 2025, from $35.9 million at December 31, 2024. The increase in FHLBNY stock directly correlates with higher short-term borrowing balances at December 31, 2025, as compared to December 31, 2024.
Cash and cash equivalents decreased by $61.8 million, or 26.9%, to $167.7 million at December 31, 2024, from $229.5 million at December 31, 2023. 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.
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, deposit inflows and the funding of deposit outflows or borrowing maturities. 55 The Company’s available-for-sale debt securities portfolio increased by $311.6 million, or 28.3%, to $1.41 billion at December 31, 2025, from $1.10 billion at December 31, 2024.
The increase was primarily due to an increase in available-for-sale debt securities of $305.4 million, or 38.4%, partially offset by decreases in loans receivable of $181.4 million, or 4.3%, and cash and cash equivalents of $61.8 million, or 26.9%.
The increase was primarily due to an increase in available-for-sale debt securities of $311.6 million, or 28.3%, partially offset by decreases in loans receivable of $170.3 million, or 4.2%, goodwill of $41.0 million, or 100%, and other assets of $13.8 million, or 29.4%.
The increase was primarily due to an increase in available-for-sale debt securities of $305.4 million, or 38.4%, partially offset by decreases in loans receivable of $181.4 million, or 4.3%, and cash and cash equivalents of $61.8 million, or 26.9%.
The increase was primarily due to an increase in available-for-sale debt securities of $311.6 million, or 28.3%, partially offset by decreases in loans receivable of $170.3 million, or 4.2%, goodwill of $41.0 million, or 100%, and other assets of $13.8 million, or 29.4%.
The decrease in net interest margin was primarily due to interest-bearing liabilities repricing faster than interest-earning assets. The net interest margin was negatively affected by approximately 10 basis points due to a leverage strategy implemented in the first quarter of 2024.
The increase in net interest margin was primarily due to higher yields on loans and mortgage backed securities, coupled with a decrease in the cost of interest-bearing liabilities. For the year ended December 31, 2024, net interest margin was negatively affected by approximately 10 basis points due to a leverage strategy implemented in the first quarter of 2024.
Government agency securities, $35.8 million in corporate bonds, substantially all of which were considered investment grade, and $685,000 in municipal bonds at December 31, 2024. Gross unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $21.8 million and $400,000, respectively, at December 31, 2024, and $32.5 million and $279,000, respectively, at December 31, 2023.
Gross unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $10.5 million and $206,000, respectively, at December 31, 2025, and $21.8 million and $400,000, respectively, at December 31, 2024. Equity securities were $5.0 million at December 31, 2025 and $14.3 million at December 31, 2024.
This decrease was primarily attributable to a decrease of $2.4 million, or 6.3%, in the allowance for credit losses as well as an increase in non-performing loans of $8.9 million, from $11.4 million at December 31, 2023 to $20.3 million at December 31, 2024.
This increase was primarily attributable to an increase of $3.0 million, or 8.4%, in the allowance for credit losses, partially offset by an increase in non-performing loans held-for-investment of $685,000 to $16.1 million at December 31, 2025, from $15.5 million at December 31, 2024.

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