Northfield Bancorp, Inc. (New Jersey) :NFBK-US: Earnings Analysis: Q3, 2016 By the Numbers : October 31, 2016

Northfield Bancorp, Inc. (New Jersey) reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Northfield Bancorp, Inc. (New Jersey) – Flushing Financial Corporation, Greene County Bancorp, Inc., Dime Community Bancshares, Inc. and Astoria Financial Corporation (FFIC-US, GCBC-US, DCOM-US and AF-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 28.92 million, Net Earnings of USD 7.29 million.
  • Net interest income margins narrowed from 92.51% to 90.78% compared to the same period last year.
  • Net loan assets changed 27.70% compared to same period last year and 4.26% from previous period, total deposits changed 26.18% compared to same period last year and 0.87% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2015-09-30 2015-12-31 2016-03-31 2016-06-30 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 22.24 23.35 26.96 28.17 28.92
Revenue Growth (%YOY) 6.87 7.09 22.04 26.39 30.03
Earnings (mil) 4.68 5.56 3.66 6.99 7.29
Earnings Growth (%YOY) -1.1 13.92 -26.83 62.63 55.81
Net Margin (%) 21.03 23.8 13.58 24.79 25.2
EPS 0.11 0.13 0.08 0.15 0.16
Return on Equity (%) 3.35 3.98 2.51 4.57 4.72
Return on Assets (%) 0.59 0.7 0.43 0.75 0.77

Access our Ratings and Scores for Northfield Bancorp, Inc. (New Jersey)

Market Share Versus Profits

Revenues History
Earnings History

NFBK-US‘s change in revenue this period compared to the same period last year of 30.03% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that NFBK-US is holding onto its market share. Also, for comparison purposes, revenues changed by 2.64% and earnings by 4.32% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

NFBK-US‘s earnings rose year-on-year. But this growth has not come as a result of improvement in net interest income margins or any loan loss improvement activities in its operations. Net interest income margins were 90.78% compared to 91.01% in the immediate last period. Net interest income after provisions margins were 89.15% this period compared to 90.96% in the previous period. In addition, loan loss provisions as a percentage of net interest income were 1.80% this period and 0.97% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

The firm’s decline in net interest income margins came despite the relative increase in the levels of net loan assets. In addition, total deposits as a percentage of equity went from 3.73% to 4.24%. On an absolute basis, net loan assets changed 27.70% compared to the same period last year and 4.26% from the previous period. Total deposits changed 26.18% compared to the same period last year and 0.87% from the previous period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 32.34% to 38.28% and (2) one-time items. The company’s pretax margins are now 38.28%, compared to 32.34% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for Northfield Bancorp, Inc. (New Jersey)

Company Profile

Northfield Bancorp, Inc. engages in the provision of banking and financial services. Its principal business consists of gathering deposits, and to a lesser extent, borrowing funds, and using such funds to originate multifamily real estate loans and commercial real estate loans, purchase investment securities including mortgage-backed securities and corporate bonds, as well as deposit funds in other financial institutions. The Company also offers construction and land loans, commercial and industrial loans, one- to four-family residential mortgage loans, and home equity loans and lines of credit. Northfield Bancorp was founded on March 01, 1887 and is headquartered in Woodbridge, NJ.

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