Northfield Bancorp, Inc. · NASDAQ:NFBK
Northfield Bancorp — IPO Roadshow (September 2010)
38 slides from Northfield Bancorp's IPO roadshow presentation, Sep 15, 2010
Slide 1: Northfield Bancorp, Inc. Investor Presentation
Northfield Bancorp, Inc. Investor Presentation John W. Alexander - Chairman, President & CEO Steven M. Klein - Chief Financial Officer Kenneth J. Doherty - Chief Lending Officer NASDAQ Global Select: NFBK September 2010
Slide 2: Forward-looking Statements and Associated Risk Factors; Additional Information
Forward-looking Statements and Associated Risk Factors; Additional Information Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995 This presentation may contain certain forward-looking statements regarding our prospective performance and strategies within the meaning of Sec
Slide 3: Offering Summary
Offering Summary Issuer: Transaction Structure: Price per Share: Shares Offered: Pro Forma Shares Outstanding: Exchange Ratio for Current Shares: Gross Proceeds: Exchange/Symbol: Book-Running Manager: Maximum Order Limit: Northfield Bancorp, Inc. (Delaware) Second-Step Conversion $10.00 26,350,000 (
Slide 4: Valuation Range
Valuation Range (1) Based upon the offer price of $10.00 per share (2) As of March 31, 2010. Per share value based upon total pro forma shares outstanding. Excludes intangibles of $16.318 million
Slide 5: Overview of Northfield Bancorp, Inc.
Overview of Northfield Bancorp, Inc. $2.2 billion asset bank located in metropolitan New York market(1) Traditional community banking business model 19 full service banking locations: Staten Island (12), Brooklyn (1), and New Jersey (6) Wide range of financial products and services Senior managers e
Slide 6: Retail Franchise: Staten Island Franchise
Retail Franchise Staten Island Franchise Largest locally-based institution Ranked #5 in deposit market share $832 million (75%) of NFBK's total deposits(1) Average branch size - $75.6 million(1) At 10.8%, Staten Island is fastest growing borough in New York City and one of the fastest growing counti
Slide 7: Retail Franchise: New Jersey and Brooklyn
Retail Franchise New Jersey Franchise Acquired Liberty Bank in 2002 6 branches and $297 million in deposits as of June 30, 2010 Increased deposits 53% in last 3 years Corporate headquarters moved to Woodbridge, NJ Brooklyn Franchise De novo branch opened in 2007 $50 million in deposits as of June 30
Slide 8: Conservative Balance Sheet Composition
Conservative Balance Sheet Composition 2003 2004 2005 2006 2007 2008 2009 June 2010 Loans held-for-investment 282585 320691 387467 409189 424329 589984 729269 772909 Securities 1029222 1071002 900665 741934 825708 974562 1141946 1311072 Cash and Deposits 65855 94507 38578 65824 49588 103781 42544 28
Slide 9: Strong Capital Ratios
Tangible Equity / Assets (Holding Company, Consolidated) Tier 1 Risk-Based Capital / Assets (Bank Only) Total Risk-Based Capital / Assets (Bank Only) Current 18.11 27.31 28.59 Pro Forma1 27.6 38.41 39.66 Well-Capitalized: 6% Well-Capitalized: 10% Strong Capital Ratios (1) Represents the midpoint of
Slide 10: Business Strategy
Grow the current franchise organically Increase loans and deposits De novo branch expansion Deploy capital prudently Acquisitions Dividends and repurchases Maintain focus on risk Improve loan quality Manage interest rate risk Continue disciplined expense management Business Strategy
Slide 11: Transaction Rationale
Eliminates uncertainties associated with the MHC structure Positions the company to better take advantage of future mergers and acquisitions Improves the liquidity of NFBK common stock Transaction Rationale
Slide 12: Overview of Loan Portfolio
Commercial Mortgage Multifamily One- to Four-Family Construction & Land Home Equity C&I Other Insurance Premium 6/30/2010 339321 211388 85871 36703 30598 16884 1716 49657 Overview of Loan Portfolio As of June 30, 2010 Diversified portfolio Primarily shorter-term or adjustable rate
Slide 13: Overview of Loan Portfolio: Commercial and Multifamily
Overview of Loan Portfolio 2005 2006 2007 2008 2009 June 2010 Northfield 165657 207680 243902 289123 327802 339321 Commercial Real Estate 2005 2006 2007 2008 2009 June 2010 Northfield 14105 13276 14164 108534 178401 211388 Multifamily Adjusted lending focus in recognition of economic environment Goi
Slide 14: Commercial Real Estate Portfolio
(1) As of March 31, 2010 (dollars in thousands) Commercial Real Estate Portfolio Commercial Real Estate(1) - $332,427 Office Buildings Manufacturing Accommodations Retail Restaurant School/Daycare Other Services Recreational Warehousing Mixed Use 0.172 0.196 0.088 0.067 0.03 0.032 0.171 0.055 0.014
Slide 15: Overview of Loan Portfolio: Other Segments
2005 2006 2007 2008 2009 June 2010 Northfield N/A N/A N/A N/A 40382 49657 Insurance Premium N/A N/A N/A N/A 2005 2006 2007 2008 2009 June 2010 Northfield 16105 13922 12797 24182 26118 30598 Home Equity Overview of Loan Portfolio 2005 2006 2007 2008 2009 June 2010 Northfield 52890 52124 44850 52158 4
Slide 16: Quarterly Credit Quality Trends
2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 Other real estate owned 1071 993 933 1938 1533 1362 Non-accruing loans 13166 16016 19232 30914 31248 34007 TDRs on non-accrual status 9650 11494 11003 10717 13090 17417 TDRs on accruing status 2414 6838 7258 7250 8817 10708 Loans 90 days or more past-d
Slide 17: Non-Accrual Loan Composition
Nine loans comprise 55% of total nonaccrual loans at June 30, 2010 Manufacturing & Warehouse (4 loans): $ 8,419 construction products $ 5,021 consumer products $ 2,945 fuel oil products $ 635* warehouse $17,020 Office Buildings (3 loans): $ 3,449 New York $ 2,428 New Jersey $ 1,914* New York $ 7,791
Slide 18: Addressing Delinquent Loans
Addressing Delinquent Loans Increased staff in credit department and engaged third-party support Evaluate delinquent loans to determine appropriate carrying value; charging-off collateralized loans to estimated fair value (less estimated costs to sell) Evaluate borrower and collateral to determine w
Slide 19: Comparative Credit Metrics
2005 2006 2007 2008 2009 June 2010 NFBK 1.24 1.23 1.33 1.49 2.11 2.47 Mid-Atlantic Peers (1) 1.08 0.98 0.97 1.1 1.34 1.41 Nationwide Peers (2) 1.16 1.12 1.12 1.37 1.76 1.94 Comparative Credit Metrics Net Charge-Offs / Average Loans 2005 2006 2007 2008 2009 YTD 2010 NFBK 0 0 0.2 0.38 0.37 0.28 Mid-At
Slide 20: Overview of Securities Portfolio
Overview of Securities Portfolio Includes securities held-to-maturity with amortized cost of $5.8 million Vintage stated at par value, Rating stated at carrying value As of June 30, 2010 (dollars in thousands) 2002 2003 2004 2005 2006 10346 101016 9459 6178 5375 (Vintage, Amount, % of Total) AAA AA
Slide 21: Overview of Funding Sources
(1) Retail deposits exclude CDARS(r) deposits As of June 30, 2010 (dollars in thousands) Overview of Funding Sources Wholesale funding utilized to support lower-risk securities leverage opportunities Retail Deposits FHLB Repurchase Agreements Obligations under capital leases CDARS 0.745 0.063 0.141
Slide 22: Overview of Deposit Composition
2003 2004 2005 2006 2007 2008 2009 6/30/2010 Savings 1029222 1071002 900665 357185 317875 449302 564593 605828 CDs 282585 320691 387467 496413 402587 417585 524621 498714 CDARS 54752 86624 NOW 65855 94507 38578 40852 57555 64382 62904 72963 Non-Interest Bearing 89093 80364 81852 95339 99208 93170 11
Slide 23: Cost of Deposits
2007 2008 2009 YTD 6/30/10 Savings, NOW, and MM 0.0079 0.0132 0.0107 0.0083 Certificates of Deposit 0.0435 0.0344 0.0239 0.016 Cost of Deposits Average 2.35% Average 2.04% Average 1.55% Average 1.10% Note: Weighted average cost of deposits includes average non-interest bearing transaction accounts o
Slide 24: Sustained Net Interest Margin
2004 2005 2006 2007 2008 2009 YTD 6/30/2010 Avg. Interest-Earning Assets 1395 1433 1298 1286 1493 1792 1958.751 Net Interest Margin 0.0291 0.0294 0.0281 0.0287 0.0313 0.0316 0.0314 Avg. Spread 5yr Treasury to Effective Fed Funds 0.0208 0.0083 -0.0022 -0.0059 0.0088 0.0204 0.0217 (dollars in millions
Slide 25: Disciplined Expense Management
2005 2006 2007 2008 2009 YTD June 2010 NFBK 45.79 58.01 77.57 46.94 55.26 51.62 Mid-Atlantic Peers (2) 58.16 63.32 64.6 62.13 61.65 62.705 Nationwide Peers (3) 61.235 61.995 63.53 64.9 65.3 64.99 Efficiency Ratio(1) Disciplined Expense Management (1) The efficiency ratio represents non-interest expe
Slide 26: Strong Performance through the Economic Cycle: Net Income
Strong Performance through the Economic Cycle (1) Includes a $2.51 million nontaxable gain for death benefit realized on bank owned life insurance (dollars in thousands) 2005 2006 2007 2008 2009 YTD June 2010 Net Income 13159 10842 10507 13331 12074 7567 BOLI 2500 Net Income (1)
Slide 27: Return on Average Assets
Strong Performance Through the Economic Cycle Source-SNL Financial; Company documents Return on Average Assets 2005 2006 2007 2008 2009 YTD June 2010 Northfield 0.0088 0.008 0.0078 0.0101 0.0064 0.0074 SNL Thrift Index 0.0105 0.0081 -0.0011 -0.0061 0.0005 0.002 SNL Bank Index* 0.0133 0.0136 0.0084 -
Slide 28: Return on Average Equity
Strong Performance Through the Economic Cycle Source-SNL Financial; Company documents 2004 2005 2006 2007 2008 2009 YTD June 2010 Northfield 0.1134 0.0863 0.0701 0.0527 0.0422 0.0309 0.0386 SNL Thrift Index 0.1238 0.1228 0.0897 -0.0118 -0.053 0.0048 0.0175 SNL Bank Index* 0.1494 0.1542 0.1564 0.0979
Slide 29: Why Invest in Northfield
Strong franchise in an attractive market area Sustained performance even in a tough economic environment Demonstrated ability to utilize capital management tools Repurchased over 2 million shares in last 6 quarters Sixth quarterly cash dividend declared in August 2010 Total return of 40.6% from IPO
Slide 30: Pricing Date: NFBK vs Appraisal Group
Pricing Date NFBK Appraisal Group 9/13/2010 116.2 83.7 75.9 90.5 9/10/2010 114.3 83.7 75.9 90.5 9/9/2010 113.2 83.7 75.9 90.5 9/8/2010 112.6 83.7 75.9 90.5 9/7/2010 111.9 83.7 75.9 90.5 9/3/2010 114 83.7 75.9 90.5 9/2/2010 112 83.7 75.9 90.5 9/1/2010 112.6 83.7 75.9 90.5 8/31/2010 109.9 83.7 75.9 90
Slide 31: Appendix
Appendix
Slide 32: Appendix - Overview of the Conversion
Appendix - Overview of the Conversion Northfield-Federal Northfield Bancorp Ownership ViewPoint MHC Minority Holders East 57 43 Northfield Bancorp MHC MHC 57% Public Investors 43% Northfield Bank 56.6% Pre-Transaction Post-Transaction Northfield-Delaware Northfield Bancorp Ownership New Public Inves
Slide 33: Appendix - Financial Profile
Appendix - Financial Profile Source-Company Documents
Slide 34: Appendix - Appraisal Peer Comparison
Appendix - Appraisal Peer Comparison(1) Financial data as of June 30, 2010; pricing data as of September 13, 2010 (1) Peer group companies selected by independent appraisal firm Peer group excludes NewAlliance Bancshares, Inc., which is the target of a merger announced August 19, 2010 Source-SNL Fin
Slide 35: Appendix - Peer Comparison
Appendix - Peer Comparison(1) Financial data as of June 30, 2010; pricing data as of September 13, 2010 (1) Includes selected thrifts in New York, New Jersey and Pennsylvania with assets between $1 and $5 billion Source-SNL Financial; Company documents
Slide 36: Appendix - Densely Populated and Attractive Market Area
(1) Demographic data is provided by ESRI based primarily on US Census data. For non-census year data, ESRI uses samples and projections to estimate the demographic data. SNL performs calculations on the underlying data provided by ESRI for some of the data presented. (2) Rate not seasonally adjusted
Slide 37: Appendix - Experienced Management Team
Appendix - Experienced Management Team
Slide 38: Pricing Date: NFBK vs SNL Thrift and SNL Bank
Pricing Date NFBK SNL Thrift SNL Bank 11/8/2007 100 100 100 11/9/2007 105.799 102.86 100.45 11/12/2007 106.9 102.34 101.4 11/13/2007 109.9 106.1 106.58 11/14/2007 113 104.41 105.35 11/15/2007 116.7 101.13 101.68 11/16/2007 115.4 100.03 100.8 11/19/2007 110 96.33 97.8 11/20/2007 111.5 95.07 97.43 11/