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On Friday, DA Davidson maintained a Neutral rating for Northfield Bancorp (NASDAQ:NFBK) with a consistent price target of $13.00. The research firm highlighted Northfield Bancorp’s pre-provision net revenue (PPNR) outperformance, driven by improved net interest income (NII) and fees, despite some operational expenditures. The $500 million market cap bank, which offers a notable 4.3% dividend yield and has maintained dividend payments for 18 consecutive years, appears slightly undervalued according to InvestingPro analysis. The company’s financial results showcased a notable 27% quarter-over-quarter increase in deposit growth, a 10 basis point net interest margin (NIM) expansion, and a 4% decline in loans.
The analysts observed that Northfield Bancorp’s near-term results were bolstered by these factors, leading to a 3% rise in shares compared to the KBW Regional Banking Index (KRX) since the company reported its earnings. The stock has demonstrated strong momentum with a 21% return over the past year and 10.5% over the last six months. DA Davidson anticipates continued NIM expansion and a resurgence in loan growth for 2025.InvestingPro subscribers have access to over 30 additional financial metrics and insights about Northfield Bancorp’s valuation and growth prospects.
Despite these positive developments, DA Davidson expressed caution due to the slow pace of growth inflection. The firm adjusted its earnings per share (EPS) estimates downwards, citing a less steep NIM trajectory than previously anticipated. This adjustment was made in light of an expectation for fewer interest rate cuts, affecting the bank’s sensitivity to liabilities. The firm also noted Northfield Bancorp’s strategic management of growth to conserve capital, with a tangible common equity (TCE) ratio of 11.8%. Trading at a P/E ratio of 16.3, analysts still expect the company to remain profitable this year, with forecasted EPS of $0.80 for 2025.
In other recent news, Northfield Bancorp has been the subject of updated financial projections and internal changes. DA Davidson analyst, Rissell Gunther, adjusted the price target for Northfield Bancorp shares to $13.00 from the previous $14.00, maintaining a Neutral rating. This revision comes after Northfield Bancorp’s recent financial performance, which showcased a positive pre-provision net revenue (PPNR) due to improved net interest income and fee revenue, despite some operational expenditure challenges. Gunther anticipates a net interest margin expansion and a rebound in loan growth for the company in 2025.
In addition to financial projections, Northfield Bancorp has granted new equity awards to its directors and employees under its 2019 Equity Incentive Plan. A total of 238,008 restricted shares and 59,735 performance-based, restricted stock units were granted. The awarded shares, which will vest over a period of three years, are part of a long-term incentive plan to align the interests of directors and employees with those of shareholders.
These are recent developments that highlight Northfield Bancorp’s financial performance and its strategic efforts to incentivize and retain key personnel. As these events unfold, the company continues to navigate its operational and financial trajectory.
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