##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For transition period from      to
 Commission File Number 1-33732
 
 NORTHFIELD BANCORP, INC.
 (Exact name of registrant as specified in its charter)
 
 United States of America
(State or other jurisdiction of incorporation)
    
    42-1572539
(I.R.S. Employer Identification No.)1410 St. Georges Avenue, Avenel, New Jersey
(Address of principal executive offices)
    
    07001
(Zip Code)
 Registrants telephone number, including area code: (732) 499-7200
 Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)
 
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if smaller reporting company)
 o þ




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##### 



NORTHFIELD BANCORP, INC.
   PageNumberPART I  FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    2Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    31Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    43Item 4. Controls and Procedures
    
    
    45PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    46Item 1A. Risk Factors
    
    
    46Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    46Item 3. Defaults Upon Senior Securities
    
    
    46Item 4. [Removed and Reserved]
    
    
    46Item 5. Other Information
    
    
    46Item 6. Exhibits
    
    
    47Signatures
    
    
    48EX-31.1EX-31.2EX-32
  1




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##### Table of Contents



PART I
 
 ITEM 1. FINANCIAL STATEMENTS
 NORTHFIELD BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
 March 31,
    
    December 31,2011
    
    2010(Unaudited)ASSETS:Cash and due from banks
    
    $
    9,986
    
    
    
    9,862Interest-bearing deposits in other financial institutions
    
    
    82,685
    
    
    
    33,990Total cash and cash equivalents
    
    
    92,671
    
    
    
    43,852Trading securities
    
    
    4,381
    
    
    
    4,095Securities available-for-sale, at estimated fair value
(encumbered $393,348 in 2011 and $275,694 in 2010)
    
    
    1,280,188
    
    
    
    1,244,313Securities held-to-maturity, at amortized cost (estimated fair value of $4,898
in 2011 and $5,273 in 2010) (encumbered $0 in 2011 and 2010)
    
    
    4,710
    
    
    
    5,060Loans held-for-sale
    
    
    322
    
    
    
    1,170Loans held-for-investment, net
    
    
    853,099
    
    
    
    827,591Allowance for loan losses
    
    
    (22,015
    )
    
    
    (21,819
    )Net loans held-for-investment
    
    
    831,084
    
    
    
    805,772Accrued interest receivable
    
    
    7,879
    
    
    
    7,873Bank owned life insurance
    
    
    75,546
    
    
    
    74,805Federal Home Loan Bank of New York stock, at cost
    
    
    9,334
    
    
    
    9,784Premises and equipment, net
    
    
    16,357
    
    
    
    16,057Goodwill
    
    
    16,159
    
    
    
    16,159Other real estate owned
    
    
    521
    
    
    
    171Other assets
    
    
    16,579
    
    
    
    18,056Total assets
    
    $
    2,355,731
    
    
    
    2,247,167LIABILITIES AND STOCKHOLDERS EQUITY:LIABILITIES:Deposits
    
    $
    1,403,263
    
    
    
    1,372,842Borrowings
    
    
    489,365
    
    
    
    391,237Advance payments by borrowers for taxes and insurance
    
    
    2,325
    
    
    
    693Accrued expenses and other liabilities
    
    
    65,016
    
    
    
    85,678Total liabilities
    
    
    1,959,969
    
    
    
    1,850,450STOCKHOLDERS EQUITY:Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued or outstanding
    
    
    
    
    
    
    Common stock, $0.01 par value: 90,000,000 shares authorized, 45,632,611 shares issued
at March 31, 2011, and December 31, 2010, respectively, 42,917,594 and 43,316,021
outstanding at March 31, 2011, and December 31, 2010, respectively
    
    
    456
    
    
    
    456Additional paid-in-capital
    
    
    206,857
    
    
    
    205,863Unallocated common stock held by employee stock ownership plan
    
    
    (15,042
    )
    
    
    (15,188
    )Retained earnings
    
    
    226,776
    
    
    
    222,655Accumulated other comprehensive income
    
    
    10,015
    
    
    
    10,910Treasury stock at cost; 2,715,017 and 2,316,590 shares at March 31, 2011, and
December 31, 2010, respectively
    
    
    (33,300
    )
    
    
    (27,979
    )Total stockholders equity
    
    
    395,762
    
    
    
    396,717Total liabilities and stockholders equity
    
    $
    2,355,731
    
    
    
    2,247,167
  2




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##### Table of Contents



NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
 Three months endedMarch 31,2011
    
    2010Interest income:Loans
    
    $
    12,474
    
    
    
    10,293Mortgage-backed securities
    
    
    8,417
    
    
    
    9,065Other securities
    
    
    970
    
    
    
    1,500Federal Home Loan Bank of New York dividends
    
    
    109
    
    
    
    95Deposits in other financial institutions
    
    
    28
    
    
    
    54Total interest income
    
    
    21,998
    
    
    
    21,007Interest expense:Deposits
    
    
    3,017
    
    
    
    3,952Borrowings
    
    
    3,210
    
    
    
    2,506Total interest expense
    
    
    6,227
    
    
    
    6,458Net interest income
    
    
    15,771
    
    
    
    14,549Provision for loan losses
    
    
    1,367
    
    
    
    1,930Net interest income after provision for loan losses
    
    
    14,404
    
    
    
    12,619Non-interest income:Fees and service charges for customer services
    
    
    694
    
    
    
    660Income on bank owned life insurance
    
    
    741
    
    
    
    423Gain on securities transactions, net
    
    
    1,805
    
    
    
    615Other-than-temporary impairment losses on securities
    
    
    (161
    )
    
    
    Portion recognized in other comprehensive income (before taxes)
    
    
    
    
    
    
    Net impairment losses on securities recognized in earnings
    
    
    (161
    )
    
    
    Other
    
    
    30
    
    
    
    25Total non-interest income
    
    
    3,109
    
    
    
    1,723Non-interest expense:Compensation and employee benefits
    
    
    5,162
    
    
    
    4,791Director compensation
    
    
    399
    
    
    
    397Occupancy
    
    
    1,492
    
    
    
    1,194Furniture and equipment
    
    
    287
    
    
    
    272Data processing
    
    
    672
    
    
    
    617FDIC insurance
    
    
    460
    
    
    
    430Professional fees
    
    
    440
    
    
    
    379Other
    
    
    1,041
    
    
    
    1,041Total non-interest expense
    
    
    9,953
    
    
    
    9,121Income before income tax expense
    
    
    7,560
    
    
    
    5,221Income tax expense
    
    
    2,590
    
    
    
    1,840Net income
    
    $
    4,970
    
    
    
    3,381Basic and diluted earnings per share
    
    $
    0.12
    
    
    
    0.08
  3




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##### Table of Contents



NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY
 Unallocatedcommon stock
    
    
    
    
    
    AccumulatedCommon Stock
    
    Additional
    
    held by the
    
    
    
    
    
    other
    
    
    
    
    
    TotalPar
    
    paid-in
    
    employee stock
    
    Retained
    
    comprehensive
    
    Treasury
    
    stockholdersShares
    
    value
    
    capital
    
    ownership plan
    
    earnings
    
    income
    
    Stock
    
    equityBalance at December 31, 2009
    
    
    45,628,211
    
    
    $
    456
    
    
    
    202,479
    
    
    
    (15,807
    )
    
    
    212,196
    
    
    
    12,145
    
    
    
    (19,929
    )
    
    
    391,540Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,381
    
    
    
    
    
    
    
    
    
    
    
    3,381Change in accumulated
comprehensive
income, net of tax of $2,108
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,545
    
    
    
    
    
    
    
    3,545Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,926ESOP shares allocated
or committed to be released
    
    
    
    
    
    
    
    
    
    
    55
    
    
    
    147
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    202Stock compensation expense
    
    
    
    
    
    
    
    
    
    
    776
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    776Additional stock benefit on
stock awards
    
    
    
    
    
    
    
    
    
    
    231
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    231Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (26
    )
    
    
    
    
    
    
    163
    
    
    
    137Dividends declared ($0.04 per
share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (772
    )
    
    
    
    
    
    
    
    
    
    
    (772
    )Issuance of restricted stock
    
    
    4,400
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Treasury stock (average cost
of $13.25
per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,754
    )
    
    
    (2,754
    )Balance at March 31, 2010
    
    
    45,632,611
    
    
    
    456
    
    
    
    203,541
    
    
    
    (15,660
    )
    
    
    214,779
    
    
    
    15,690
    
    
    
    (22,520
    )
    
    
    396,286Balance at December 31, 2010
    
    
    45,632,611
    
    
    
    456
    
    
    
    205,863
    
    
    
    (15,188
    )
    
    
    222,655
    
    
    
    10,910
    
    
    
    (27,979
    )
    
    
    396,717Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,970
    
    
    
    
    
    
    
    
    
    
    
    4,970Change in accumulated
comprehensive
income, net of tax of $598
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (895
    )
    
    
    
    
    
    
    (895
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,075ESOP shares allocated
or committed to be released
    
    
    
    
    
    
    
    
    
    
    49
    
    
    
    146
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    195Stock compensation expense
    
    
    
    
    
    
    
    
    
    
    759
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    759Additional tax benefit on
equity awards
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    186Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    6
    
    
    
    5Dividends declared ($0.05 per
share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (848
    )
    
    
    
    
    
    
    
    
    
    
    (848
    )Treasury stock (average cost of
$13.35 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,327
    )
    
    
    (5,327
    )Balance at March 31, 2011
    
    
    45,632,611
    
    
    $
    456
    
    
    
    206,857
    
    
    
    (15,042
    )
    
    
    226,776
    
    
    
    10,015
    
    
    
    (33,300
    )
    
    
    395,762
  4




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##### Table of Contents



NORTHFIELD BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Three months endedMarch 31,2011
    
    2010Cash flows from operating activities:Net income
    
    $
    4,970
    
    
    
    3,381Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    1,367
    
    
    
    1,930ESOP and stock compensation expense
    
    
    954
    
    
    
    978Depreciation
    
    
    498
    
    
    
    432Amortization of premiums, and deferred loan costs, net of (accretion) of discounts,
and deferred loan fees
    
    
    82
    
    
    
    123Amortization of intangible assets
    
    
    44
    
    
    
    68Income on bank owned life insurance
    
    
    (741
    )
    
    
    (423
    )Net gain on sale of loans held-for-sale
    
    
    (14
    )
    
    
    Proceeds from sale of loans held-for-sale
    
    
    3,730
    
    
    
    Origination of loans held-for-sale
    
    
    (2,868
    )
    
    
    Gain on securities transactions, net
    
    
    (1,805
    )
    
    
    (615
    )Net impairment losses on securities recognized in earnings
    
    
    161
    
    
    
    Net purchases of trading securities
    
    
    (100
    )
    
    
    (42
    )(Increase) decrease in accrued interest receivable
    
    
    (6
    )
    
    
    12Decrease in other assets
    
    
    1,681
    
    
    
    499Decrease in accrued expenses and other liabilities
    
    
    (678
    )
    
    
    (154
    )Net cash provided by operating activities
    
    
    7,275
    
    
    
    6,189Cash flows from investing activities:Net increase in loans receivable
    
    
    (27,003
    )
    
    
    (8,367
    )Redemptions of Federal Home Loan Bank of New York stock, net
    
    
    450
    
    
    
    1,395Purchases of securities available-for-sale
    
    
    (245,578
    )
    
    
    (217,161
    )Principal payments and maturities on securities available-for-sale
    
    
    101,420
    
    
    
    123,590Principal payments and maturities on securities held-to-maturity
    
    
    351
    
    
    
    519Proceeds from sale of securities available-for-sale
    
    
    88,505
    
    
    
    15,193Purchases and improvements of premises and equipment
    
    
    (798
    )
    
    
    (870
    )Net cash used in investing activities
    
    
    (82,653
    )
    
    
    (85,701
    )Cash flows from financing activities:Net increase in deposits
    
    
    30,421
    
    
    
    76,020Dividends paid
    
    
    (848
    )
    
    
    (772
    )Exercise of stock options
    
    
    5
    
    
    
    137Purchase of treasury stock
    
    
    (5,327
    )
    
    
    (2,754
    )Additional tax benefit on equity awards
    
    
    186
    
    
    
    231Increase in advance payments by borrowers for taxes and insurance
    
    
    1,632
    
    
    
    1,281Repayments under capital lease obligations
    
    
    (51
    )
    
    
    (44
    )Proceeds from borrowings
    
    
    317,773
    
    
    
    69,680Repayments related to borrowings
    
    
    (219,594
    )
    
    
    (56,000
    )Net cash provided by financing activities
    
    
    124,197
    
    
    
    87,779Net increase in cash and cash equivalents
    
    
    48,819
    
    
    
    8,267Cash and cash equivalents at beginning of period
    
    
    43,852
    
    
    
    42,544Cash and cash equivalents at end of period
    
    $
    92,671
    
    
    
    50,811Supplemental cash flow information:Cash paid during the period for:Interest
    
    $
    6,010
    
    
    
    6,645Income taxes
    
    
    1,024
    
    
    
    1,565Non-cash transactions:Loans charged-off, net
    
    
    1,171
    
    
    
    198Other real estate owned charged-off
    
    
    
    
    
    
    146Transfers to other real estate owned
    
    
    350
    
    
    
    Decrease in due to broker for purchases of securities available-for-sale
    
    
    (19,984
    )
    
    
    
  5




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##### Table of Contents



NORTHFIELD BANCORP, INC.
Notes to Unaudited Consolidated Financial Statements
 Note 1  Basis of Presentation
    Note 2  Securities Available-for-Sale
  March 31, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    valueMortgage-backed securities:Pass-through certificates:Government sponsored
enterprises (GSE)
    
    $
    560,644
    
    
    
    13,217
    
    
    
    65
    
    
    
    573,796Non-GSE
    
    
    12,033
    
    
    
    35
    
    
    
    474
    
    
    
    11,594Real estate mortgage
investment conduits (REMICs):GSE
    
    
    517,197
    
    
    
    2,636
    
    
    
    2,887
    
    
    
    516,946Non-GSE
    
    
    55,977
    
    
    
    3,183
    
    
    
    49
    
    
    
    59,1111,145,851
    
    
    
    19,071
    
    
    
    3,475
    
    
    
    1,161,447Other securities:Equity investments-mutual funds
    
    
    7,924
    
    
    
    
    
    
    
    
    
    
    
    7,924Corporate bonds
    
    
    109,248
    
    
    
    1,651
    
    
    
    82
    
    
    
    110,817117,172
    
    
    
    1,651
    
    
    
    82
    
    
    
    118,741Total securities available-for-sale
    
    $
    1,263,023
    
    
    
    20,722
    
    
    
    3,557
    
    
    
    1,280,188
 6




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##### Table of Contents



December 31, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    valueMortgage-backed securities:Pass-through certificates:Government sponsored
enterprises (GSE)
    
    $
    342,316
    
    
    
    13,479
    
    
    
    
    
    
    
    355,795Non-GSE
    
    
    27,801
    
    
    
    814
    
    
    
    737
    
    
    
    27,878Real estate mortgage
investment conduits (REMICs):GSE
    
    
    622,582
    
    
    
    3,020
    
    
    
    3,525
    
    
    
    622,077Non-GSE
    
    
    65,766
    
    
    
    3,674
    
    
    
    51
    
    
    
    69,3891,058,465
    
    
    
    20,987
    
    
    
    4,313
    
    
    
    1,075,139Other securities:Equity investments-mutual funds
    
    
    12,437
    
    
    
    31
    
    
    
    115
    
    
    
    12,353GSE bonds
    
    
    34,988
    
    
    
    45
    
    
    
    
    
    
    
    35,033Corporate bonds
    
    
    119,765
    
    
    
    2,146
    
    
    
    123
    
    
    
    121,788167,190
    
    
    
    2,222
    
    
    
    238
    
    
    
    169,174Total securities available-for-sale
    
    $
    1,225,655
    
    
    
    23,209
    
    
    
    4,551
    
    
    
    1,244,313
  EstimatedAmortized
    
    
    fairAvailable-for-sale
    
    cost
    
    
    valueDue in one year or less
    
    $
    69,328
    
    
    
    70,421Due after one year through five years
    
    
    39,920
    
    
    
    40,396$
    109,248
    
    
    
    110,817
    7




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##### Table of Contents



March 31, 2011Less than 12 months
    
    
    12 months or more
    
    
    TotalUnrealized
    
    
    Estimated
    
    
    Unrealized
    
    
    Estimated
    
    
    Unrealized
    
    
    Estimatedlosses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair valueMortgage-backed securities:Pass-through certificates:Government sponsored enterprises (GSE)
    
    $
    65
    
    
    
    26,558
    
    
    
    
    
    
    
    
    
    
    
    65
    
    
    
    26,558Non-GSE
    
    
    
    
    
    
    
    
    
    
    474
    
    
    
    5,945
    
    
    
    474
    
    
    
    5,945Real estate mortgage investment conduits (REMICs)GSE
    
    
    2,887
    
    
    
    279,882
    
    
    
    
    
    
    
    
    
    
    
    2,887
    
    
    
    279,882Non-GSE
    
    
    
    
    
    
    
    
    
    
    49
    
    
    
    1,088
    
    
    
    49
    
    
    
    1,088Corporate bonds
    
    
    82
    
    
    
    13,831
    
    
    
    
    
    
    
    
    
    
    
    82
    
    
    
    13,831Total
    
    $
    3,034
    
    
    
    320,271
    
    
    
    523
    
    
    
    7,033
    
    
    
    3,557
    
    
    
    327,304
 December 31, 2010Less than 12 months
    
    
    12 months or more
    
    
    TotalUnrealized
    
    
    Estimated
    
    
    Unrealized
    
    
    Estimated
    
    
    Unrealized
    
    
    Estimatedlosses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair valueMortgage-backed securities:Pass-through certificates:Non-GSE
    
    $
    
    
    
    
    
    
    
    
    737
    
    
    
    10,126
    
    
    
    737
    
    
    
    10,126REMICsGSE
    
    
    3,525
    
    
    
    344,971
    
    
    
    
    
    
    
    
    
    
    
    3,525
    
    
    
    344,971Non-GSE
    
    
    
    
    
    
    
    
    
    
    51
    
    
    
    1,238
    
    
    
    51
    
    
    
    1,238Corporate bonds
    
    
    123
    
    
    
    13,880
    
    
    
    
    
    
    
    
    
    
    
    123
    
    
    
    13,880Equity Investments  mutual funds
    
    
    115
    
    
    
    4,884
    
    
    
    
    
    
    
    
    
    
    
    115
    
    
    
    4,884Total
    
    $
    3,763
    
    
    
    363,735
    
    
    
    788
    
    
    
    11,364
    
    
    
    4,551
    
    
    
    375,099
     8




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##### Table of Contents



Note 3  Net Loans Held-for-Investment
  March 31,
    
    December 31,2011
    
    2010Real estate loans:Commercial mortgage
    
    $
    326,494
    
    
    
    339,321One- to- four family residential mortgage
    
    
    75,458
    
    
    
    78,032Construction and land
    
    
    30,318
    
    
    
    35,054Multifamily
    
    
    323,316
    
    
    
    283,588Home equity and lines of credit
    
    
    30,076
    
    
    
    28,125Total real estate loans
    
    
    785,662
    
    
    
    764,120Commercial and industrial loans
    
    
    15,477
    
    
    
    17,020Insurance premium loans
    
    
    49,701
    
    
    
    44,517Other loans
    
    
    1,259
    
    
    
    1,062Total commercial and industrial,
insurance premium, and other loans
    
    
    66,437
    
    
    
    62,599Total loans held-for-investment
    
    
    852,099
    
    
    
    826,719Deferred loan cost, net
    
    
    1,000
    
    
    
    872Loans held-for-investment, net
    
    
    853,099
    
    
    
    827,591Allowance for loan losses
    
    
    (22,015
    )
    
    
    (21,819
    )Net loans held-for-investment
    
    $
    831,084
    
    
    
    805,772
     (1)
    
    Allowances are established for impaired loans (generally defined by the Company
as non-accrual loans with an outstanding balance of $500,000 or greater). The amount
of impairment provided for as an
allowance is represented by the deficiency, if any, between the present value of
expected future cash flows discounted at the original loans effective interest rate or
the underlying collateral value (less estimated costs to sell,) if the loan is
collateral dependent, and the carrying value of the loan. Impaired loans that have no
impairment losses are not considered for general valuation allowances described below.
 9




---



##### Table of Contents



(2)
    
    General allowances are established for loan losses on a portfolio basis for
loans that do not meet the definition of impaired. The portfolio is grouped into
similar risk characteristics, primarily loan type, loan-to-value, if collateral
dependent, and internal credit risk ratings. We apply an estimated loss rate to each
loan group. The loss rates applied are based on our cumulative prior two year loss
experience adjusted, as appropriate, for the environmental factors discussed below.
This evaluation is inherently subjective, as it requires material estimates that may be
susceptible to significant revisions based upon changes in economic and real estate
market conditions. Actual loan losses may be significantly more than the allowance for
loan losses we have established, which could have a material negative effect on our
financial results. Within general allowances is an unallocated reserve established to
recognize losses related to the inherent subjective nature of the appraisal process and
the internal credit risk rating process.
   
    
    changes in local, regional, national, and international economic and
business conditions and developments that affect the collectibility of our
portfolio, including the condition of various market segments;
    
    changes in the nature and volume of our portfolio and in the terms of
our loans;
    
    changes in the experience, ability, and depth of lending management
and other relevant staff;
    
    changes in the volume and severity of past due loans, the volume of
nonaccrual loans, and the volume and severity of adversely classified or graded
loans;
    
    changes in the quality of our loan review system;
    
    changes in the value of underlying collateral for collateral-dependent
loans;
    
    the existence and effect of any concentrations of credit, and changes
in the level of such concentrations; and
    
    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.
    10




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##### Table of Contents



At or for thethree months endedMarch 31,2011
    
    2010Beginning balance
    
    $
    21,819
    
    
    
    15,414Provision for loan losses
    
    
    1,367
    
    
    
    1,930Charge-offs, net
    
    
    (1,171
    )
    
    
    (198
    )Ending balance
    
    $
    22,015
    
    
    
    17,146
 11




---



##### Table of Contents



March 31, 2011Real EstateHome EquityOne -to- Four
    
    
    Construction
    
    
    
    
    
    
    and Lines of
    
    
    Commercial and
    
    
    InsuranceCommercial
    
    
    Family
    
    
    and Land
    
    
    Multifamily
    
    
    Credit
    
    
    Industrial
    
    
    Premium
    
    
    Other
    
    
    Unallocated
    
    
    TotalAllowance for loan losses:Beginning Balance, December 31, 2010
    
    $
    12,654
    
    
    
    570
    
    
    
    1,855
    
    
    
    5,137
    
    
    
    242
    
    
    
    719
    
    
    
    111
    
    
    
    28
    
    
    
    503
    
    
    $
    21,819Charge-offs
    
    
    (1,150
    )
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (1,177
    )Recoveries
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6Provisions
    
    
    1,196
    
    
    
    (6
    )
    
    
    (635
    )
    
    
    466
    
    
    
    17
    
    
    
    (95
    )
    
    
    15
    
    
    
    7
    
    
    
    402
    
    
    
    1,367Ending Balance, March 31, 2011
    
    $
    12,706
    
    
    
    564
    
    
    
    1,220
    
    
    
    5,578
    
    
    
    259
    
    
    
    624
    
    
    
    124
    
    
    
    35
    
    
    
    905
    
    
    $
    22,015Ending balance, March 31, 2011:individually evaluated for impairment
    
    $
    1,880
    
    
    
    369
    
    
    
    36
    
    
    
    122
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,407Ending balance, March 31, 2011:collectively evaluated for impairment
    
    $
    10,826
    
    
    
    195
    
    
    
    1,184
    
    
    
    5,456
    
    
    
    259
    
    
    
    624
    
    
    
    124
    
    
    
    35
    
    
    
    905
    
    
    $
    19,608Loans held-for-investment, net:Ending balance, March 31, 2011
    
    $
    326,412
    
    
    
    75,541
    
    
    
    30,340
    
    
    
    324,056
    
    
    
    30,308
    
    
    
    15,482
    
    
    
    49,701
    
    
    
    1,259
    
    
    
    
    
    
    $
    853,099Ending balance, March 31, 2011:individually evaluated for impairment
    
    $
    49,955
    
    
    
    1,750
    
    
    
    3,620
    
    
    
    3,223
    
    
    
    
    
    
    
    1,473
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    60,021Ending balance, March 31, 2011:collectively evaluated for impairment
    
    $
    276,457
    
    
    
    73,791
    
    
    
    26,720
    
    
    
    320,833
    
    
    
    30,308
    
    
    
    14,009
    
    
    
    49,701
    
    
    
    1,259
    
    
    
    
    
    
    $
    793,078
 12




---



##### Table of Contents



December 31, 2010Real EstateHome EquityOne -to- Four
    
    
    Construction
    
    
    
    
    
    
    and Lines of
    
    
    Commercial and
    
    
    InsuranceCommercial
    
    
    Family
    
    
    and Land
    
    
    Multifamily
    
    
    Credit
    
    
    Industrial
    
    
    Premium
    
    
    Other
    
    
    Unallocated
    
    
    TotalAllowance for loan losses:Beginning Balance, December 31, 2009
    
    $
    8,403
    
    
    
    163
    
    
    
    2,409
    
    
    
    1,866
    
    
    
    210
    
    
    
    1,877
    
    
    
    101
    
    
    
    34
    
    
    
    351
    
    
    $
    15,414Charge-offs
    
    
    (987
    )
    
    
    
    
    
    
    (443
    )
    
    
    (2,132
    )
    
    
    
    
    
    
    (36
    )
    
    
    (101
    )
    
    
    
    
    
    
    
    
    
    
    (3,699
    )Recoveries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    20Provisions
    
    
    5,238
    
    
    
    407
    
    
    
    (111
    )
    
    
    5,403
    
    
    
    32
    
    
    
    (1,122
    )
    
    
    91
    
    
    
    (6
    )
    
    
    152
    
    
    
    10,084Ending Balance, December 31, 2010
    
    $
    12,654
    
    
    
    570
    
    
    
    1,855
    
    
    
    5,137
    
    
    
    242
    
    
    
    719
    
    
    
    111
    
    
    
    28
    
    
    
    503
    
    
    $
    21,819Ending balance, December 31, 2010:individually evaluated for impairment
    
    $
    2,129
    
    
    
    369
    
    
    
    36
    
    
    
    121
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,655Ending balance, December 31, 2010:collectively evaluated for impairment
    
    $
    10,525
    
    
    
    201
    
    
    
    1,819
    
    
    
    5,016
    
    
    
    242
    
    
    
    719
    
    
    
    111
    
    
    
    28
    
    
    
    503
    
    
    $
    19,164Loans held-for-investment, net:Ending balance, December 31, 2010
    
    $
    339,259
    
    
    
    78,109
    
    
    
    35,077
    
    
    
    284,199
    
    
    
    28,337
    
    
    
    17,032
    
    
    
    44,517
    
    
    
    1,061
    
    
    
    
    
    
    $
    827,591Ending balance, December 31, 2010:individually evaluated for impairment
    
    $
    51,324
    
    
    
    1,750
    
    
    
    4,562
    
    
    
    5,083
    
    
    
    
    
    
    
    500
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    63,219Ending balance, December 31, 2010:collectively evaluated for impairment
    
    $
    287,935
    
    
    
    76,359
    
    
    
    30,515
    
    
    
    279,116
    
    
    
    28,337
    
    
    
    16,532
    
    
    
    44,517
    
    
    
    1,061
    
    
    
    
    
    
    $
    764,372
   13




---



##### Table of Contents



1.
    
    Strong2.
    
    Good3.
    
    Acceptable4.
    
    Adequate5.
    
    Watch6.
    
    Special Mention7.
    
    Substandard8.
    
    Doubtful9.
    
    Loss
  14




---



##### Table of Contents



At March 31, 2011Real EstateHome EquityCommercial
    
    
    One- to Four-Family
    
    
    Construction
    
    
    Multifamily
    
    
    and Lines of
    
    
    Commercial
    
    
    Insurance< 35% LTV
    
    
    => 35% LTV
    
    
    < 60% LTV
    
    
    => 60% LTV
    
    
    and Land
    
    
    < 35% LTV
    
    
    => 35% LTV
    
    
    Credit
    
    
    and Industrial
    
    
    Premium
    
    
    Other
    
    
    TotalInternal Risk RatingPass
    
    $
    27,851
    
    
    
    223,994
    
    
    
    46,291
    
    
    
    24,378
    
    
    
    22,578
    
    
    
    21,355
    
    
    
    293,005
    
    
    
    30,014
    
    
    
    11,257
    
    
    
    49,295
    
    
    
    1,259
    
    
    $
    751,277Special Mention
    
    
    1,011
    
    
    
    22,723
    
    
    
    764
    
    
    
    2,096
    
    
    
    404
    
    
    
    
    
    
    
    6,123
    
    
    
    54
    
    
    
    1,143
    
    
    
    217
    
    
    
    
    
    
    
    34,535Substandard
    
    
    1,488
    
    
    
    49,345
    
    
    
    620
    
    
    
    1,392
    
    
    
    7,358
    
    
    
    563
    
    
    
    3,010
    
    
    
    240
    
    
    
    3,082
    
    
    
    189
    
    
    
    
    
    
    
    67,287Total loans held-for-investment, net, March 31, 2011
    
    
    30,350
    
    
    
    296,062
    
    
    
    47,675
    
    
    
    27,866
    
    
    
    30,340
    
    
    
    21,918
    
    
    
    302,138
    
    
    
    30,308
    
    
    
    15,482
    
    
    
    49,701
    
    
    
    1,259
    
    
    
    853,099
 At December 31, 2010Real EstateHome EquityCommercial
    
    
    One- to Four-Family
    
    
    Construction
    
    
    Multifamily
    
    
    and Lines of
    
    
    Commercial
    
    
    Insurance< 35% LTV
    
    
    => 35% LTV
    
    
    < 60% LTV
    
    
    => 60% LTV
    
    
    and Land
    
    
    < 35% LTV
    
    
    => 35% LTV
    
    
    Credit
    
    
    and Industrial
    
    
    Premium
    
    
    Other
    
    
    TotalInternal Risk RatingPass
    
    
    24,826
    
    
    
    248,759
    
    
    
    49,928
    
    
    
    22,247
    
    
    
    24,767
    
    
    
    18,880
    
    
    
    256,948
    
    
    
    28,042
    
    
    
    14,110
    
    
    
    44,149
    
    
    
    1,061
    
    
    
    733,717Special Mention
    
    
    1,613
    
    
    
    12,108
    
    
    
    1,206
    
    
    
    1,750
    
    
    
    1,128
    
    
    
    
    
    
    
    5,233
    
    
    
    55
    
    
    
    776
    
    
    
    239
    
    
    
    
    
    
    
    24,108Substandard
    
    
    1,385
    
    
    
    50,568
    
    
    
    623
    
    
    
    2,355
    
    
    
    9,182
    
    
    
    504
    
    
    
    2,634
    
    
    
    240
    
    
    
    2,146
    
    
    
    129
    
    
    
    
    
    
    
    69,766Total loans held-for-investment, net, December 31, 2010
    
    $
    27,824
    
    
    
    311,435
    
    
    
    51,757
    
    
    
    26,352
    
    
    
    35,077
    
    
    
    19,384
    
    
    
    264,815
    
    
    
    28,337
    
    
    
    17,032
    
    
    
    44,517
    
    
    
    1,061
    
    
    $
    827,591
   15




---



##### Table of Contents



At March 31, 2011Non-Accruing Loans90 Days or90 Days or
    
    
    
    
    
    
    More Past
    
    
    Total Non-0-29 Days
    
    
    30-89 Days
    
    
    More Past
    
    
    
    
    
    
    Due and
    
    
    PerformingPast Due
    
    
    Past Due
    
    
    Due
    
    
    Total
    
    
    Accruing
    
    
    LoansReal estate loans:CommercialLTV < 35%Substandard
    
    $
    48
    
    
    
    
    
    
    
    360
    
    
    
    408
    
    
    
    
    
    
    $
    408Total
    
    
    48
    
    
    
    
    
    
    
    360
    
    
    
    408
    
    
    
    
    
    
    
    408LTV => 35%Substandard
    
    
    24,837
    
    
    
    2,749
    
    
    
    16,756
    
    
    
    44,342
    
    
    
    
    
    
    
    44,342Total
    
    
    24,837
    
    
    
    2,749
    
    
    
    16,756
    
    
    
    44,342
    
    
    
    
    
    
    
    44,342Total Commercial
    
    
    24,885
    
    
    
    2,749
    
    
    
    17,116
    
    
    
    44,750
    
    
    
    
    
    
    
    44,750One-to-four family residentialLTV < 60%Special Mention
    
    
    153
    
    
    
    24
    
    
    
    98
    
    
    
    275
    
    
    
    86
    
    
    
    361Substandard
    
    
    
    
    
    
    
    
    
    
    198
    
    
    
    198
    
    
    
    
    
    
    
    198Total
    
    
    153
    
    
    
    24
    
    
    
    296
    
    
    
    473
    
    
    
    86
    
    
    
    559LTV => 60%Substandard
    
    
    196
    
    
    
    391
    
    
    
    74
    
    
    
    661
    
    
    
    731
    
    
    
    1,392Total
    
    
    196
    
    
    
    391
    
    
    
    74
    
    
    
    661
    
    
    
    731
    
    
    
    1,392Total One-to-four family residential
    
    
    349
    
    
    
    415
    
    
    
    370
    
    
    
    1,134
    
    
    
    817
    
    
    
    1,951Construction and landSpecial Mention
    
    
    
    
    
    
    
    
    
    
    404
    
    
    
    404
    
    
    
    
    
    
    
    404Substandard
    
    
    1,210
    
    
    
    
    
    
    
    2,735
    
    
    
    3,945
    
    
    
    
    
    
    
    3,945Total construction and land
    
    
    1,210
    
    
    
    
    
    
    
    3,139
    
    
    
    4,349
    
    
    
    
    
    
    
    4,349MultifamilyLTV < 35%Substandard
    
    
    
    
    
    
    496
    
    
    
    67
    
    
    
    563
    
    
    
    
    
    
    
    563Total
    
    
    
    
    
    
    496
    
    
    
    67
    
    
    
    563
    
    
    
    
    
    
    
    563LTV => 35%Substandard
    
    
    
    
    
    
    
    
    
    
    2,837
    
    
    
    2,837
    
    
    
    
    
    
    
    2,837Total
    
    
    
    
    
    
    
    
    
    
    2,837
    
    
    
    2,837
    
    
    
    
    
    
    
    2,837Total Multifamily
    
    
    
    
    
    
    496
    
    
    
    2,904
    
    
    
    3,400
    
    
    
    
    
    
    
    3,400Home equity and lines of creditSubstandard
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181
    
    
    
    59
    
    
    
    240Total home equity and lines of credit
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181
    
    
    
    59
    
    
    
    240Commercial and industrial loansSpecial Mention
    
    
    
    
    
    
    
    
    
    
    497
    
    
    
    497
    
    
    
    
    
    
    
    497Substandard
    
    
    557
    
    
    
    
    
    
    
    741
    
    
    
    1,298
    
    
    
    
    
    
    
    1,298Total commercial and industrial loans
    
    
    557
    
    
    
    
    
    
    
    1,238
    
    
    
    1,795
    
    
    
    
    
    
    
    1,795Insurance premium loansSubstandard
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    189
    
    
    
    
    
    
    
    189Total insurance premium loans
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    189
    
    
    
    
    
    
    
    189Total Non-Performing Loans, March 31, 2011
    
    $
    27,001
    
    
    
    3,660
    
    
    
    25,137
    
    
    
    55,798
    
    
    
    876
    
    
    $
    56,674
 16




---



##### Table of Contents



At December 31, 2010Non-Accruing Loans90 Days or90 Days or
    
    
    
    
    
    
    More Past
    
    
    Total Non-0-29 Days
    
    
    30-89 Days
    
    
    More Past
    
    
    
    
    
    
    Due and
    
    
    PerformingPast Due
    
    
    Past Due
    
    
    Due
    
    
    Total
    
    
    Accruing
    
    
    LoansReal estate loans:CommercialLTV < 35%Special Mention
    
    $
    29
    
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    
    
    
    $
    29Total
    
    
    29
    
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    
    
    
    
    29LTV => 35%Substandard
    
    
    13,650
    
    
    
    15,050
    
    
    
    17,659
    
    
    
    46,359
    
    
    
    
    
    
    
    46,359Total
    
    
    13,650
    
    
    
    15,050
    
    
    
    17,659
    
    
    
    46,359
    
    
    
    
    
    
    
    46,359Total Commercial
    
    
    13,679
    
    
    
    15,050
    
    
    
    17,659
    
    
    
    46,388
    
    
    
    
    
    
    
    46,388One-to-four family residentialLTV < 60%Special Mention
    
    
    
    
    
    
    179
    
    
    
    99
    
    
    
    278
    
    
    
    86
    
    
    
    364Substandard
    
    
    135
    
    
    
    
    
    
    
    197
    
    
    
    332
    
    
    
    291
    
    
    
    623Total
    
    
    135
    
    
    
    179
    
    
    
    296
    
    
    
    610
    
    
    
    377
    
    
    
    987LTV => 60%Substandard
    
    
    
    
    
    
    591
    
    
    
    74
    
    
    
    665
    
    
    
    731
    
    
    
    1,396Total
    
    
    
    
    
    
    591
    
    
    
    74
    
    
    
    665
    
    
    
    731
    
    
    
    1,396Total One-to-four family residential
    
    
    135
    
    
    
    770
    
    
    
    370
    
    
    
    1,275
    
    
    
    1,108
    
    
    
    2,383Construction and landSpecial Mention
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    404
    
    
    
    404Substandard
    
    
    2,152
    
    
    
    1,860
    
    
    
    1,110
    
    
    
    5,122
    
    
    
    
    
    
    
    5,122Total construction and land
    
    
    2,152
    
    
    
    1,860
    
    
    
    1,110
    
    
    
    5,122
    
    
    
    404
    
    
    
    5,526MultifamilyLTV < 35%Substandard
    
    
    
    
    
    
    504
    
    
    
    
    
    
    
    504
    
    
    
    
    
    
    
    504Total
    
    
    
    
    
    
    504
    
    
    
    
    
    
    
    504
    
    
    
    
    
    
    
    504LTV => 35%Special Mention
    
    
    1,824
    
    
    
    
    
    
    
    
    
    
    
    1,824
    
    
    
    
    
    
    
    1,824Substandard
    
    
    
    
    
    
    423
    
    
    
    2,112
    
    
    
    2,535
    
    
    
    
    
    
    
    2,535Total
    
    
    1,824
    
    
    
    423
    
    
    
    2,112
    
    
    
    4,359
    
    
    
    
    
    
    
    4,359Total Multifamily
    
    
    1,824
    
    
    
    927
    
    
    
    2,112
    
    
    
    4,863
    
    
    
    
    
    
    
    4,863Home equity and lines of creditSubstandard
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181
    
    
    
    59
    
    
    
    240Total home equity and lines of credit
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181
    
    
    
    59
    
    
    
    240Commercial and industrial loansPass
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    38
    
    
    
    38Special Mention
    
    
    
    
    
    
    
    
    
    
    100
    
    
    
    100
    
    
    
    
    
    
    
    100Substandard
    
    
    
    
    
    
    267
    
    
    
    956
    
    
    
    1,223
    
    
    
    
    
    
    
    1,223Total commercial and industrial loans
    
    
    
    
    
    
    267
    
    
    
    1,056
    
    
    
    1,323
    
    
    
    38
    
    
    
    1,361Insurance premium loansSubstandard
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    129
    
    
    
    
    
    
    
    129Total insurance premium loans
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    129
    
    
    
    
    
    
    
    129Total Non-Performing Loans, December 31, 2010
    
    $
    17,790
    
    
    
    18,874
    
    
    
    22,617
    
    
    
    59,281
    
    
    
    1,609
    
    
    $
    60,890
 17




---



##### Table of Contents



At March 31, 2011Performing (Accruing) LoansNon-0-29 Days Past
    
    
    30-89 Days
    
    
    
    
    
    
    Performing
    
    
    Total LoansDue
    
    
    Past Due
    
    
    Total
    
    
    Loans
    
    
    Receivable, netReal estate loans:CommercialLTV < 35%Pass
    
    $
    27,851
    
    
    
    
    
    
    
    27,851
    
    
    
    
    
    
    $
    27,851Special Mention
    
    
    73
    
    
    
    938
    
    
    
    1,011
    
    
    
    
    
    
    
    1,011Substandard
    
    
    
    
    
    
    1,080
    
    
    
    1,080
    
    
    
    408
    
    
    
    1,488Total
    
    
    27,924
    
    
    
    2,018
    
    
    
    29,942
    
    
    
    408
    
    
    
    30,350LTV => 35%Pass
    
    
    220,473
    
    
    
    3,521
    
    
    
    223,994
    
    
    
    
    
    
    
    223,994Special Mention
    
    
    21,701
    
    
    
    1,022
    
    
    
    22,723
    
    
    
    
    
    
    
    22,723Substandard
    
    
    5,003
    
    
    
    
    
    
    
    5,003
    
    
    
    44,342
    
    
    
    49,345Total
    
    
    247,177
    
    
    
    4,543
    
    
    
    251,720
    
    
    
    44,342
    
    
    
    296,062Total Commercial
    
    
    275,101
    
    
    
    6,561
    
    
    
    281,662
    
    
    
    44,750
    
    
    
    326,412One-to-four family residentialLTV < 60%Pass
    
    
    45,875
    
    
    
    416
    
    
    
    46,291
    
    
    
    
    
    
    
    46,291Special Mention
    
    
    
    
    
    
    403
    
    
    
    403
    
    
    
    361
    
    
    
    764Substandard
    
    
    133
    
    
    
    289
    
    
    
    422
    
    
    
    198
    
    
    
    620Total
    
    
    46,008
    
    
    
    1,108
    
    
    
    47,116
    
    
    
    559
    
    
    
    47,675LTV => 60%Pass
    
    
    24,029
    
    
    
    349
    
    
    
    24,378
    
    
    
    
    
    
    
    24,378Special Mention
    
    
    1,750
    
    
    
    346
    
    
    
    2,096
    
    
    
    
    
    
    
    2,096Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,392
    
    
    
    1,392Total
    
    
    25,779
    
    
    
    695
    
    
    
    26,474
    
    
    
    1,392
    
    
    
    27,866Total one-to-four family residential
    
    
    71,787
    
    
    
    1,803
    
    
    
    73,590
    
    
    
    1,951
    
    
    
    75,541Construction and landPass
    
    
    22,578
    
    
    
    
    
    
    
    22,578
    
    
    
    
    
    
    
    22,578Special Mention
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    404
    
    
    
    404Substandard
    
    
    3,413
    
    
    
    
    
    
    
    3,413
    
    
    
    3,945
    
    
    
    7,358Total construction and land
    
    
    25,991
    
    
    
    
    
    
    
    25,991
    
    
    
    4,349
    
    
    
    30,340MultifamilyLTV < 35%Pass
    
    
    21,355
    
    
    
    
    
    
    
    21,355
    
    
    
    
    
    
    
    21,355Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    563
    
    
    
    563Total
    
    
    21,355
    
    
    
    
    
    
    
    21,355
    
    
    
    563
    
    
    
    21,918LTV => 35%Pass
    
    
    289,476
    
    
    
    3,529
    
    
    
    293,005
    
    
    
    
    
    
    
    293,005Special Mention
    
    
    5,076
    
    
    
    1,047
    
    
    
    6,123
    
    
    
    
    
    
    
    6,123Substandard
    
    
    173
    
    
    
    
    
    
    
    173
    
    
    
    2,837
    
    
    
    3,010Total
    
    
    294,725
    
    
    
    4,576
    
    
    
    299,301
    
    
    
    2,837
    
    
    
    302,138Total Multifamily
    
    
    316,080
    
    
    
    4,576
    
    
    
    320,656
    
    
    
    3,400
    
    
    
    324,056Home equity and lines of creditPass
    
    
    29,760
    
    
    
    254
    
    
    
    30,014
    
    
    
    
    
    
    
    30,014Special Mention
    
    
    54
    
    
    
    
    
    
    
    54
    
    
    
    
    
    
    
    54Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    240
    
    
    
    240Total home equity and lines of credit
    
    
    29,814
    
    
    
    254
    
    
    
    30,068
    
    
    
    240
    
    
    
    30,308Commercial and industrial loansPass
    
    
    10,533
    
    
    
    724
    
    
    
    11,257
    
    
    
    
    
    
    
    11,257Special Mention
    
    
    646
    
    
    
    
    
    
    
    646
    
    
    
    497
    
    
    
    1,143Substandard
    
    
    1,784
    
    
    
    
    
    
    
    1,784
    
    
    
    1,298
    
    
    
    3,082Total commercial and industrial loans
    
    
    12,963
    
    
    
    724
    
    
    
    13,687
    
    
    
    1,795
    
    
    
    15,482Insurance premium loansPass
    
    
    48,940
    
    
    
    355
    
    
    
    49,295
    
    
    
    
    
    
    
    49,295Special Mention
    
    
    
    
    
    
    217
    
    
    
    217
    
    
    
    
    
    
    
    217Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    189Total insurance premium loans
    
    
    48,940
    
    
    
    572
    
    
    
    49,512
    
    
    
    189
    
    
    
    49,701Other loansPass
    
    
    1,198
    
    
    
    61
    
    
    
    1,259
    
    
    
    
    
    
    
    1,259Total other loans
    
    
    1,198
    
    
    
    61
    
    
    
    1,259
    
    
    
    
    
    
    
    1,259$
    781,874
    
    
    
    14,551
    
    
    
    796,425
    
    
    
    56,674
    
    
    $
    853,099
 18




---



##### Table of Contents



At December 31, 2010Performing (Accruing) LoansNon-0-29 Days Past
    
    
    30-89 Days
    
    
    
    
    
    
    Performing
    
    
    Total LoansDue
    
    
    Past Due
    
    
    Total
    
    
    Loans
    
    
    Receivable, netReal estate loans:CommercialLTV < 35%Pass
    
    $
    24,823
    
    
    
    3
    
    
    
    24,826
    
    
    
    
    
    
    $
    24,826Special Mention
    
    
    1,068
    
    
    
    516
    
    
    
    1,584
    
    
    
    29
    
    
    
    1,613Substandard
    
    
    
    
    
    
    1,385
    
    
    
    1,385
    
    
    
    
    
    
    
    1,385Total
    
    
    25,891
    
    
    
    1,904
    
    
    
    27,795
    
    
    
    29
    
    
    
    27,824LTV => 35%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Pass
    
    
    242,131
    
    
    
    6,628
    
    
    
    248,759
    
    
    
    
    
    
    
    248,759Special Mention
    
    
    11,670
    
    
    
    438
    
    
    
    12,108
    
    
    
    
    
    
    
    12,108Substandard
    
    
    4,209
    
    
    
    
    
    
    
    4,209
    
    
    
    46,359
    
    
    
    50,568Total
    
    
    258,010
    
    
    
    7,066
    
    
    
    265,076
    
    
    
    46,359
    
    
    
    311,435Total Commercial
    
    
    283,901
    
    
    
    8,970
    
    
    
    292,871
    
    
    
    46,388
    
    
    
    339,259One-to-four family residentialLTV < 60%Pass
    
    
    48,930
    
    
    
    998
    
    
    
    49,928
    
    
    
    
    
    
    
    49,928Special Mention
    
    
    83
    
    
    
    759
    
    
    
    842
    
    
    
    364
    
    
    
    1,206Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    623
    
    
    
    623Total
    
    
    49,013
    
    
    
    1,757
    
    
    
    50,770
    
    
    
    987
    
    
    
    51,757LTV => 60%Pass
    
    
    21,429
    
    
    
    818
    
    
    
    22,247
    
    
    
    
    
    
    
    22,247Special Mention
    
    
    1,750
    
    
    
    
    
    
    
    1,750
    
    
    
    
    
    
    
    1,750Substandard
    
    
    959
    
    
    
    
    
    
    
    959
    
    
    
    1,396
    
    
    
    2,355Total
    
    
    24,138
    
    
    
    818
    
    
    
    24,956
    
    
    
    1,396
    
    
    
    26,352Total one-to-four family residential
    
    
    73,151
    
    
    
    2,575
    
    
    
    75,726
    
    
    
    2,383
    
    
    
    78,109Construction and landPass
    
    
    24,767
    
    
    
    
    
    
    
    24,767
    
    
    
    
    
    
    
    24,767Special Mention
    
    
    225
    
    
    
    499
    
    
    
    724
    
    
    
    404
    
    
    
    1,128Substandard
    
    
    4,060
    
    
    
    
    
    
    
    4,060
    
    
    
    5,122
    
    
    
    9,182Total construction and land
    
    
    29,052
    
    
    
    499
    
    
    
    29,551
    
    
    
    5,526
    
    
    
    35,077MultifamilyLTV < 35%Pass
    
    
    18,656
    
    
    
    224
    
    
    
    18,880
    
    
    
    
    
    
    
    18,880Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    504
    
    
    
    504Total
    
    
    18,656
    
    
    
    224
    
    
    
    18,880
    
    
    
    504
    
    
    
    19,384LTV => 35%Pass
    
    
    251,129
    
    
    
    5,819
    
    
    
    256,948
    
    
    
    
    
    
    
    256,948Special Mention
    
    
    3,258
    
    
    
    151
    
    
    
    3,409
    
    
    
    1,824
    
    
    
    5,233Substandard
    
    
    99
    
    
    
    
    
    
    
    99
    
    
    
    2,535
    
    
    
    2,634Total
    
    
    254,486
    
    
    
    5,970
    
    
    
    260,456
    
    
    
    4,359
    
    
    
    264,815Total Multifamily
    
    
    273,142
    
    
    
    6,194
    
    
    
    279,336
    
    
    
    4,863
    
    
    
    284,199Home equity and lines of creditPass
    
    
    27,780
    
    
    
    262
    
    
    
    28,042
    
    
    
    
    
    
    
    28,042Special Mention
    
    
    55
    
    
    
    
    
    
    
    55
    
    
    
    
    
    
    
    55Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    240
    
    
    
    240Total home equity and lines of credit
    
    
    27,835
    
    
    
    262
    
    
    
    28,097
    
    
    
    240
    
    
    
    28,337Commercial and industrial loansPass
    
    
    13,626
    
    
    
    446
    
    
    
    14,072
    
    
    
    38
    
    
    
    14,110Special Mention
    
    
    586
    
    
    
    90
    
    
    
    676
    
    
    
    100
    
    
    
    776Substandard
    
    
    923
    
    
    
    
    
    
    
    923
    
    
    
    1,223
    
    
    
    2,146Total commercial and industrial loans
    
    
    15,135
    
    
    
    536
    
    
    
    15,671
    
    
    
    1,361
    
    
    
    17,032Insurance premium loansPass
    
    
    43,728
    
    
    
    421
    
    
    
    44,149
    
    
    
    
    
    
    
    44,149Special Mention
    
    
    
    
    
    
    239
    
    
    
    239
    
    
    
    
    
    
    
    239Substandard
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    129Total insurance premium loans
    
    
    43,728
    
    
    
    660
    
    
    
    44,388
    
    
    
    129
    
    
    
    44,517Other loansPass
    
    
    959
    
    
    
    102
    
    
    
    1,061
    
    
    
    
    
    
    
    1,061Total other loans
    
    
    959
    
    
    
    102
    
    
    
    1,061
    
    
    
    
    
    
    
    1,061$
    746,903
    
    
    
    19,798
    
    
    
    766,701
    
    
    
    60,890
    
    
    $
    827,591
 19




---



##### Table of Contents



At March 31, 2011UnpaidRecorded
    
    
    Principal
    
    
    RelatedInvestment
    
    
    Balance
    
    
    AllowanceWith No Related Allowance Recorded:Real estate loans:CommercialLTV < 35%Special Mention
    
    $
    73
    
    
    
    73
    
    
    
    LTV => 35%Special Mention
    
    
    4,734
    
    
    
    4,734
    
    
    
    Substandard
    
    
    29,507
    
    
    
    31,870
    
    
    
    Construction and landSubstandard
    
    
    1,210
    
    
    
    1,389
    
    
    
    MultifamilyLTV < 35%Substandard
    
    
    496
    
    
    
    496
    
    
    
    LTV => 35%Special Mention
    
    
    1,564
    
    
    
    1,564
    
    
    
    Commercial and industrialSpecial Mention
    
    
    42
    
    
    
    42
    
    
    
    Substandard
    
    
    1,775
    
    
    
    1,775
    
    
    
    With an Allowance Recorded:Real estate loans:CommercialLTV => 35%Special Mention
    
    
    2,412
    
    
    
    2,412
    
    
    
    (570
    )Substandard
    
    
    12,885
    
    
    
    14,148
    
    
    
    (1,310
    )One-to-four family residentialLTV => 60%Special Mention
    
    
    1,750
    
    
    
    1,750
    
    
    
    (369
    )Construction and landSubstandard
    
    
    2,410
    
    
    
    3,079
    
    
    
    (36
    )MultifamilyLTV => 35%Substandard
    
    
    1,163
    
    
    
    1,632
    
    
    
    (122
    )Total:Real estate loansCommercial
    
    
    49,611
    
    
    
    53,237
    
    
    
    (1,880
    )One-to-four family residential
    
    
    1,750
    
    
    
    1,750
    
    
    
    (369
    )Construction and land
    
    
    3,620
    
    
    
    4,468
    
    
    
    (36
    )Multifamily
    
    
    3,223
    
    
    
    3,692
    
    
    
    (122
    )Commercial and industrial loans
    
    
    1,817
    
    
    
    1,817
    
    
    
    $
    60,021
    
    
    
    64,964
    
    
    
    (2,407
    )
 20




---



##### Table of Contents



At December 31, 2010UnpaidRecorded
    
    
    Principal
    
    
    RelatedInvestment
    
    
    Balance
    
    
    AllowanceWith No Related Allowance Recorded:Real estate loans:CommercialLTV < 35%Special Mention
    
    $
    661
    
    
    
    661
    
    
    
    LTV => 35%Special Mention
    
    
    4,807
    
    
    
    4,807
    
    
    
    Substandard
    
    
    25,590
    
    
    
    26,870
    
    
    
    Construction and landSubstandard
    
    
    2,152
    
    
    
    2,416
    
    
    
    MultifamilyLTV < 35%Substandard
    
    
    504
    
    
    
    504
    
    
    
    LTV => 35%Special Mention
    
    
    3,392
    
    
    
    5,242
    
    
    
    With an Allowance Recorded:Real estate loans:CommercialLTV => 35%Substandard
    
    
    20,766
    
    
    
    21,782
    
    
    
    (2,129
    )One-to-four family residentialLTV => 60%Special Mention
    
    
    1,750
    
    
    
    1,750
    
    
    
    (369
    )Construction and landSubstandard
    
    
    2,410
    
    
    
    3,079
    
    
    
    (36
    )MultifamilyLTV => 35%Substandard
    
    
    1,187
    
    
    
    1,632
    
    
    
    (121
    )Total:Real estate loansCommercial
    
    
    51,824
    
    
    
    54,120
    
    
    
    (2,129
    )One-to-four family residential
    
    
    1,750
    
    
    
    1,750
    
    
    
    (369
    )Construction and land
    
    
    4,562
    
    
    
    5,495
    
    
    
    (36
    )Multifamily
    
    
    5,083
    
    
    
    7,378
    
    
    
    (121
    )$
    63,219
    
    
    
    68,743
    
    
    
    (2,655
    )
   21




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##### Table of Contents



Three months ended March 31, 2011Pre-Modification
    
    
    Post-ModificationNumber of
    
    
    Outstanding Recorded
    
    
    Outstanding RecordedRelationships
    
    
    Investment
    
    
    Investment(in thousands)Troubled Debt RestructuringsCommercial real estate loans  LTV => 35%Substandard
    
    
    2
    
    
    $
    11,433
    
    
    $
    10,279Commercial and industrial loansSpecial Mention
    
    
    1
    
    
    
    43
    
    
    
    42Substandard
    
    
    2
    
    
    
    1,775
    
    
    
    1,775Total Troubled Debt Restructurings
    
    
    5
    
    
    $
    13,251
    
    
    $
    12,096
      22




---



##### Table of Contents



Note 4  Deposits
  March 31,
    
    
    December 31,2011
    
    
    2010Non-interest-bearing demand
    
    $
    114,554
    
    
    
    111,413Interest-bearing negotiable orders of withdrawal (NOW)
    
    
    84,209
    
    
    
    76,251Savings-passbook, statement, tiered, and money market
    
    
    611,438
    
    
    
    632,143Certificates of deposit
    
    
    593,062
    
    
    
    553,035$
    1,403,263
    
    
    
    1,372,842
  Three months endedMarch 31,2011
    
    
    2010Negotiable
order of withdrawal, savings-passbook, statement, tiered, and money market
    
    $
    1,134
    
    
    
    1,420Certificates of deposit
    
    
    1,883
    
    
    
    2,532$
    3,017
    
    
    
    3,952
 Note 5 Equity Incentive Plan
  Weighted
    
    
    Weighted
    
    
    WeightedAverage
    
    
    Average
    
    
    AverageNumber of
    
    
    Grant Date
    
    
    Exercise
    
    
    ContractualStock Options
    
    
    Fair Value
    
    
    Price
    
    
    Life (years)Outstanding- December 31, 2010
    
    
    2,072,540
    
    
    $
    3.22
    
    
    $
    9.94
    
    
    
    8.09Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    (640
    )
    
    
    3.22
    
    
    
    9.94
    
    
    
    Outstanding- March 31, 2011
    
    
    2,071,900
    
    
    $
    3.22
    
    
    $
    9.95
    
    
    
    7.84Exercisable- March 31, 2011
    
    
    834,600
    
    
    $
    3.22
    
    
    $
    9.94
    
    
    
    7.84
   23




---



##### Table of Contents



WeightedNumber of
    
    
    AverageShares
    
    
    Grant DateAwarded
    
    
    Fair ValueNon-vested at December 31, 2010
    
    
    653,880
    
    
    $
    9.97Granted
    
    
    
    
    
    
    Vested
    
    
    (162,410
    )
    
    
    9.96Forfeited
    
    
    
    
    
    
    Non-vested at March 31, 2011
    
    
    491,470
    
    
    $
    9.97
   Note 6- Fair Value Measurements
  
    
    Level 1 Inputs  Unadjusted quoted prices in active markets for identical
assets or liabilities that the reporting entity has the ability to access at the
measurement date.
    
    Level 2 Inputs  Inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly. These
include quoted prices for similar assets or liabilities in active markets, quoted
prices for identical or similar assets or liabilities in markets that are not
active, inputs other than quoted prices that are observable for the asset or
liability (for example, interest rates, volatilities, prepayment speeds, loss
severities, credit risks and default rates) or inputs that are derived principally
from or corroborated by observable market data by correlations or other means.
    
    Level 3 Inputs  Significant unobservable inputs that reflect the Companys own
assumptions that market participants would use in pricing the assets or
liabilities.
 24




---



##### Table of Contents



Fair Value Measurements at Reporting Date Using:Quoted Prices
    
    
    Significantin Active
    
    
    Other
    
    
    SignificantMarkets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsMarch 31, 2011
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Measured on a recurring basis:Assets:Investment securities:Available-for-sale:Mortgage-backed securitiesGSE
    
    $
    1,090,742
    
    
    
    
    
    
    
    1,090,742
    
    
    
    Non-GSE
    
    
    70,705
    
    
    
    
    
    
    
    70,705
    
    
    
    Corporate bonds
    
    
    110,817
    
    
    
    
    
    
    
    110,817
    
    
    
    Equities
    
    
    7,924
    
    
    
    7,924
    
    
    
    
    
    
    
    Total available-for-sale
    
    
    1,280,188
    
    
    
    7,924
    
    
    
    1,272,264
    
    
    
    Trading securities
    
    
    4,381
    
    
    
    4,381
    
    
    
    
    
    
    
    Total
    
    $
    1,284,569
    
    
    
    12,305
    
    
    
    1,272,264
    
    
    
    Measured on a non-recurring basis:Assets:Impaired loans:Real estate loans:Commercial mortgage (CRE)
    
    $
    22,283
    
    
    
    
    
    
    
    
    
    
    
    22,283One- to- four family
residential mortgage
    
    
    1,381
    
    
    
    
    
    
    
    
    
    
    
    1,381Construction and land
    
    
    3,584
    
    
    
    
    
    
    
    
    
    
    
    3,584Multifamily
    
    
    1,041
    
    
    
    
    
    
    
    
    
    
    
    1,041Total impaired loans
    
    
    28,289
    
    
    
    
    
    
    
    
    
    
    
    28,289Other real estate owned (CRE)
    
    
    521
    
    
    
    
    
    
    
    
    
    
    
    521Total
    
    $
    28,810
    
    
    
    
    
    
    
    
    
    
    
    28,810
 Fair Value Measurements at Reporting Date Using:Quoted Prices
    
    
    Significantin Active
    
    
    Other
    
    
    SignificantMarkets for
    
    
    Observable
    
    
    UnobservableIdentical Assets
    
    
    Inputs
    
    
    InputsDecember 31, 2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Measured on a recurring basis:Assets:Investment securities:Available-for-sale:Mortgage-backed securitiesGSE
    
    $
    977,872
    
    
    
    
    
    
    
    977,872
    
    
    
    Non-GSE
    
    
    97,267
    
    
    
    
    
    
    
    97,267
    
    
    
    Corporate bonds
    
    
    121,788
    
    
    
    
    
    
    
    121,788
    
    
    
    GSE bonds
    
    
    35,033
    
    
    
    
    
    
    
    35,033
    
    
    
    Equities
    
    
    12,353
    
    
    
    12,353
    
    
    
    
    
    
    
    Total available-for-sale
    
    
    1,244,313
    
    
    
    12,353
    
    
    
    1,231,960
    
    
    
    Trading securities
    
    
    4,095
    
    
    
    4,095
    
    
    
    
    
    
    
    Total
    
    $
    1,248,408
    
    
    
    16,448
    
    
    
    1,231,960
    
    
    
    Measured on a non-recurring basis:Assets:Impaired loans:Real estate loans:Commercial mortgage
    
    $
    26,951
    
    
    
    
    
    
    
    
    
    
    
    26,951One- to four-family residential mortgage
    
    
    1,381
    
    
    
    
    
    
    
    
    
    
    
    1,381Construction and land
    
    
    4,526
    
    
    
    
    
    
    
    
    
    
    
    4,526Multifamily
    
    
    2,890
    
    
    
    
    
    
    
    
    
    
    
    2,890Total impaired loans
    
    
    35,748
    
    
    
    
    
    
    
    
    
    
    
    35,748Other real estate owned (CRE)
    
    
    171
    
    
    
    
    
    
    
    
    
    
    
    171Total
    
    $
    35,919
    
    
    
    
    
    
    
    
    
    
    
    35,919
 25




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##### Table of Contents



Available for Sale Securities:
 Trading Securities:
 Impaired Loans:
 Other Real Estate Owned:
 Fair Value of Financial Instruments
  (a) Cash, Cash Equivalents, and Certificates of Deposit
  (b) Securities (Held to Maturity)
  26




---



##### Table of Contents



(c) Federal Home Loan Bank of New York Stock
  (d) Loans
  (e) Deposits
  (f) Commitments to Extend Credit and Standby Letters of Credit
  (g) Borrowings
  (h) Advance Payments by Borrowers
  27




---



##### Table of Contents



March 31,
    
    December 31,2011
    
    2010Estimated
    
    
    
    
    
    EstimatedCarrying
    
    Fair
    
    Carrying
    
    Fairvalue
    
    value
    
    value
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    92,671
    
    
    
    92,671
    
    
    
    43,852
    
    
    
    43,852Trading securities
    
    
    4,381
    
    
    
    4,381
    
    
    
    4,095
    
    
    
    4,095Securities available-for-sale
    
    
    1,280,188
    
    
    
    1,280,188
    
    
    
    1,244,313
    
    
    
    1,244,313Securities held-to-maturity
    
    
    4,710
    
    
    
    4,898
    
    
    
    5,060
    
    
    
    5,273Federal Home Loan Bank of
New York stock, at cost
    
    
    9,334
    
    
    
    9,334
    
    
    
    9,784
    
    
    
    9,784Net loans
held-for-investment
    
    
    831,084
    
    
    
    845,791
    
    
    
    805,772
    
    
    
    818,295Financial liabilities:Deposits
    
    $
    1,403,263
    
    
    
    1,407,328
    
    
    
    1,372,842
    
    
    
    1,377,068Borrowings
    
    
    489,365
    
    
    
    501,068
    
    
    
    391,237
    
    
    
    403,920Advance payments by
borrowers
    
    
    2,325
    
    
    
    2,325
    
    
    
    693
    
    
    
    693
 Limitations
   Note 7 Earnings Per Share
   28




---



##### Table of Contents



For the three months endedMarch 31,2011
    
    2010Net income available to common stockholders
    
    $
    4,970
    
    
    
    3,381Weighted average shares outstanding-basic
    
    
    41,101,028
    
    
    
    41,509,173Effect of non-vested restricted stock and stock
options outstanding
    
    
    441,840
    
    
    
    314,621Weighted average shares outstanding-diluted
    
    
    41,542,868
    
    
    
    41,823,794Earnings per share-basic
    
    $
    0.12
    
    
    
    0.08Earnings per share-diluted
    
    $
    0.12
    
    
    
    0.08
 Note 8  Stock Repurchase Program
  Note 9  Income Taxes
  Note 10  Recent Accounting Pronouncements
 Receivables (Topic 310): Deferral of the Effective Date of Disclosures about
Troubled Debt Restructurings in Update No. 2010-20,
 29




---



##### Table of Contents



Reconsideration of Effective Control for Repurchase
Agreements
 30




---



##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 Cautionary
Statement Regarding Forward-Looking Statements
  
    
    statements of our goals, intentions, and expectations;
    
    statements regarding our business plans, prospects, growth, and operating
strategies;
    
    statements regarding the asset quality of our loan and investment portfolios; and
    
    estimates of our risks and future costs and benefits.
  
    
    the effect of the current financial economic downturn on our loan portfolio,
investment portfolio, and deposit and other customers;
    
    significantly increased competition among depository and other financial
institutions;
    
    inflation and changes in the interest rate environment or other changes that reduce
our interest margins or reduce the fair value of financial instruments;
    
    general economic conditions, either nationally or in our market areas, that are
worse than expected;
    
    adverse changes in the securities markets;
    
    legislative or regulatory changes that adversely affect our business;
    
    our ability to enter new markets successfully and take advantage of growth
opportunities, and the possible dilutive effect of potential acquisitions or de novo
branches, if any;
    
    changes in consumer spending, borrowing and savings habits;
    
    changes in accounting policies and practices, as may be adopted by bank regulatory
agencies, the Financial Accounting Standards Board, the Public Company Accounting
Oversight Board and other promulgating authorities;
    
    inability of borrowers and/or third-party providers to perform their obligations to
us;
    
    the effect of recent governmental legislation restructuring the U.S. financial and
regulatory system;
    
    the effect of developments in the secondary market affecting our loan pricing;
    
    the level of future deposit insurance premiums; and
    
    changes in our organization, compensation, and benefit plans.
  Critical Accounting Policies
  31




---



##### Table of Contents



Overview
    Comparison of Financial Condition at March 31, 2011, and December 31, 2010
      32




---



##### Table of Contents



® ®
  33




---



##### Table of Contents



Comparison of Operating Results for the Three Months Ended March 31, 2011 and 2010
 Net income
 Interest income .
 Interest expense .
 Net Interest Income .
 34




---



##### Table of Contents



Provision for Loan Losses .
 Non-interest Income .
 Non-interest Expense .
 Income Tax Expense .
 35




---



##### Table of Contents



For the Three Months Ended March 31,2011
    
    
    2010Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageOutstanding
    
    
    
    
    
    
    Yield/ Rate
    
    
    Outstanding
    
    
    
    
    
    
    Yield/ RateBalance
    
    
    Interest
    
    
    (1)
    
    
    Balance
    
    
    Interest
    
    
    (1)Interest-earning assets:Loans (5)
    
    $
    841,400
    
    
    $
    12,474
    
    
    
    6.01
    %
    
    $
    734,417
    
    
    $
    10,293
    
    
    
    5.68
    %Mortgage-backed securities
    
    
    1,070,119
    
    
    
    8,417
    
    
    
    3.19
    
    
    
    909,351
    
    
    
    9,065
    
    
    
    4.04Other securities
    
    
    151,435
    
    
    
    970
    
    
    
    2.60
    
    
    
    229,298
    
    
    
    1,500
    
    
    
    2.65Federal Home Loan Bank of New York stock
    
    
    10,839
    
    
    
    109
    
    
    
    4.08
    
    
    
    6,068
    
    
    
    95
    
    
    
    6.35Interest-earning deposits in financial
institutions
    
    
    42,709
    
    
    
    28
    
    
    
    0.27
    
    
    
    65,561
    
    
    
    54
    
    
    
    0.33Total interest-earning assets
    
    
    2,116,502
    
    
    
    21,998
    
    
    
    4.22
    
    
    
    1,944,695
    
    
    
    21,007
    
    
    
    4.38Non-interest-earning assets
    
    
    127,783
    
    
    
    
    
    
    
    
    
    
    
    107,191Total assets
    
    
    2,244,285
    
    
    
    
    
    
    
    
    
    
    
    2,051,886Interest-bearing liabilities:Savings, NOW, and money market accounts
    
    
    695,572
    
    
    
    1,134
    
    
    
    0.66
    
    
    
    637,500
    
    
    
    1,420
    
    
    
    0.90Certificates of deposit
    
    
    541,373
    
    
    
    1,883
    
    
    
    1.41
    
    
    
    588,675
    
    
    
    2,532
    
    
    
    1.74Total interest-bearing deposits
    
    
    1,236,945
    
    
    
    3,017
    
    
    
    0.99
    
    
    
    1,226,175
    
    
    
    3,952
    
    
    
    1.31Borrowed funds
    
    
    491,957
    
    
    
    3,210
    
    
    
    2.65
    
    
    
    311,798
    
    
    
    2,506
    
    
    
    3.26Total interest-bearing liabilities
    
    
    1,728,902
    
    
    
    6,227
    
    
    
    1.46
    
    
    
    1,537,973
    
    
    
    6,458
    
    
    
    1.70Non-interest-bearing deposit accounts
    
    
    110,285
    
    
    
    
    
    
    
    
    
    
    
    109,640Accrued expenses and other liabilities
    
    
    8,371
    
    
    
    
    
    
    
    
    
    
    
    10,124Total liabilities
    
    
    1,847,558
    
    
    
    
    
    
    
    
    
    
    
    1,657,737Stockholders equity
    
    
    396,727
    
    
    
    
    
    
    
    
    
    
    
    394,149Total liabilities and stockholders equity
    
    
    2,244,285
    
    
    
    
    
    
    
    
    
    
    
    2,051,886Net interest income
    
    
    
    
    
    $
    15,771
    
    
    
    
    
    
    
    
    
    
    $
    14,549Net interest rate spread (2)
    
    
    
    
    
    
    
    
    
    
    2.76
    
    
    
    
    
    
    
    
    
    
    
    2.68Net interest-earning assets (3)
    
    $
    387,600
    
    
    
    
    
    
    
    
    
    
    $
    406,722Net interest margin (4)
    
    
    
    
    
    
    
    
    
    
    3.02
    
    
    
    
    
    
    
    
    
    
    
    3.03Average interest-earning assets to
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    122.42
    %
    
    
    
    
    
    
    
    
    
    
    126.45
    %
 
 (1)
    
    Average yields and rates for the three months ended March 31, 2011 and 2010, are
annualized.(2)
    
    Net interest rate spread represents the difference between the weighted average yield
on interest-earning assets and the weighted average cost of interest-bearing liabilities.(3)
    
    Net interest-earning assets represent total interest-earning assets less total
interest-bearing liabilities.(4)
    
    Net interest margin represents net interest income divided by average total
interest-earning assets.(5)
    
    Loans include non-accrual loans. 36




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##### Table of Contents



Asset Quality
  March 31,
    
    
    December 31,
    
    
    September 30,
    
    
    June 30,
    
    
    March 31,2011
    
    
    2010
    
    
    2010
    
    
    2010
    
    
    2010Non-accruing loans
    
    $
    31,662
    
    
    
    39,303
    
    
    
    37,882
    
    
    
    34,007
    
    
    
    31,248Non-accruing loans subject to
restructuring agreements
    
    
    24,136
    
    
    
    19,978
    
    
    
    17,261
    
    
    
    17,417
    
    
    
    13,090Total non-accruing loans
    
    
    55,798
    
    
    
    59,281
    
    
    
    55,143
    
    
    
    51,424
    
    
    
    44,338Loans 90 days or more past due
and still accruing
    
    
    876
    
    
    
    1,609
    
    
    
    248
    
    
    
    77
    
    
    
    5,710Total non-performing loans
    
    
    56,674
    
    
    
    60,890
    
    
    
    55,391
    
    
    
    51,501
    
    
    
    50,048Other real estate owned
    
    
    521
    
    
    
    171
    
    
    
    171
    
    
    
    1,362
    
    
    
    1,533Total non-performing assets
    
    $
    57,195
    
    
    
    61,061
    
    
    
    55,562
    
    
    
    52,863
    
    
    
    51,581Loans subject to restructuring
agreements and still accruing
    
    $
    12,259
    
    
    
    11,198
    
    
    
    11,218
    
    
    
    10,708
    
    
    
    8,817Accruing loans 30 to 89 days delinquent
    
    $
    14,551
    
    
    
    19,798
    
    
    
    35,190
    
    
    
    30,619
    
    
    
    38,371Non-performing loans to total loans held
for investment, net
    
    
    6.64
    %
    
    
    7.36
    %
    
    
    6.90
    %
    
    
    6.66
    %
    
    
    6.79
    %Non-performing assets to total assets
    
    
    2.43
    %
    
    
    2.72
    %
    
    
    2.53
    %
    
    
    2.39
    %
    
    
    2.46
    %
     37




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##### Table of Contents



March 31, 2011Days Past Due0 to 29
    
    30 to 89
    
    90 or more
    
    TotalReal estate loans:Commercial
    
    $
    24,885
    
    
    
    2,749
    
    
    
    17,116
    
    
    
    44,750One -to- four family
residential
    
    
    349
    
    
    
    415
    
    
    
    370
    
    
    
    1,134Construction and land
    
    
    1,210
    
    
    
    
    
    
    
    3,139
    
    
    
    4,349Multifamily
    
    
    
    
    
    
    496
    
    
    
    2,904
    
    
    
    3,400Home equity and lines of credit
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181Commercial and industrial loans
    
    
    557
    
    
    
    
    
    
    
    1,238
    
    
    
    1,795Insurance premium loans
    
    
    
    
    
    
    
    
    
    
    189
    
    
    
    189Total non-accruing loans
    
    $
    27,001
    
    
    
    3,660
    
    
    
    25,137
    
    
    
    55,798December 31, 2010Days Past Due0 to 29
    
    
    30 to 89
    
    
    90 or more
    
    
    TotalReal estate loans:Commercial
    
    $
    13,679
    
    
    
    15,050
    
    
    
    17,659
    
    
    
    46,388One -to- four family
residential
    
    
    135
    
    
    
    770
    
    
    
    370
    
    
    
    1,275Construction and land
    
    
    2,152
    
    
    
    1,860
    
    
    
    1,110
    
    
    
    5,122Multifamily
    
    
    1,824
    
    
    
    927
    
    
    
    2,112
    
    
    
    4,863Home equity and lines of credit
    
    
    
    
    
    
    
    
    
    
    181
    
    
    
    181Commercial and industrial loans
    
    
    
    
    
    
    267
    
    
    
    1,056
    
    
    
    1,323Insurance premium loans
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    129Total non-accruing loans
    
    $
    17,790
    
    
    
    18,874
    
    
    
    22,617
    
    
    
    59,281
 38




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##### Table of Contents



Delinquent Accruing Loans90 Days or30 to 89 Days
    
    
    Over
    
    
    TotalAt March 31, 2011Real estate loans:Commercial
    
    $
    6,561
    
    
    
    
    
    
    
    6,561One- to four-family residential
    
    
    1,803
    
    
    
    817
    
    
    
    2,620Multifamily
    
    
    4,576
    
    
    
    
    
    
    
    4,576Home equity and lines of credit
    
    
    254
    
    
    
    59
    
    
    
    313Commercial and industrial loans
    
    
    724
    
    
    
    
    
    
    
    724Insurance premium loans
    
    
    572
    
    
    
    
    
    
    
    572Other loans
    
    
    61
    
    
    
    
    
    
    
    61Total
    
    $
    14,551
    
    
    
    876
    
    
    
    15,427At December 31, 2010Real estate loans:Commercial
    
    $
    8,970
    
    
    
    
    
    
    
    8,970One- to four-family residential
    
    
    2,575
    
    
    
    1,108
    
    
    
    3,683Construction and land
    
    
    499
    
    
    
    404
    
    
    
    903Multifamily
    
    
    6,194
    
    
    
    
    
    
    
    6,194Home equity and lines of credit
    
    
    262
    
    
    
    59
    
    
    
    321Commercial and industrial loans
    
    
    536
    
    
    
    38
    
    
    
    574Insurance premium loans
    
    
    660
    
    
    
    
    
    
    
    660Other loans
    
    
    102
    
    
    
    
    
    
    
    102Total
    
    $
    19,798
    
    
    
    1,609
    
    
    
    21,407
  At March 31, 2011
    
    
    At December 31, 2010Non-
    
    
    
    
    
    
    Non-Accruing
    
    
    Accruing
    
    
    Accruing
    
    
    AccruingTroubled Debt Restructurings:Real Estate Loans:Commercial
    
    $
    20,480
    
    
    
    8,030
    
    
    
    13,138
    
    
    
    7,879One- to- four family residential
    
    
    
    
    
    
    1,750
    
    
    
    
    
    
    
    1,750Construction and land
    
    
    3,070
    
    
    
    
    
    
    
    4,012
    
    
    
    Multifamily
    
    
    496
    
    
    
    1,563
    
    
    
    2,327
    
    
    
    1,569Commercial and industrial
    
    
    90
    
    
    
    916
    
    
    
    501
    
    
    
    Total
    
    $
    24,136
    
    
    
    12,259
    
    
    
    19,978
    
    
    
    11,198
 39




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##### Table of Contents



At or For the Three Months Ended March 31,2011
    
    
    2010(in thousands)Balance at beginning of period
    
    $
    21,819
    
    
    
    15,414Charge-offs:Real estate loans:Commercial
    
    
    (1,150
    )
    
    
    One- to- four family residential
    
    
    
    
    
    
    Construction and land
    
    
    
    
    
    
    (110
    )Multifamily
    
    
    (25
    )
    
    
    (32
    )Home equity and lines of credit
    
    
    
    
    
    
    Commercial and industrial loans
    
    
    
    
    
    
    (5
    )Insurance premium loans
    
    
    (2
    )
    
    
    (51
    )Other loans
    
    
    
    
    
    
    Total charge-offs
    
    
    (1,177
    )
    
    
    (198
    )Recoveries:Commercial real estate loans
    
    
    6
    
    
    
    Total recoveries
    
    
    6
    
    
    
    Net charge-offs
    
    
    (1,171
    )
    
    
    (198
    )Provisions (benefits) for loan losses:Real estate loans:Commercial
    
    
    1,196
    
    
    
    2,350One- to- four family residential
    
    
    (6
    )
    
    
    63Construction and land
    
    
    (635
    )
    
    
    (16
    )Multifamily
    
    
    466
    
    
    
    491Home equity and lines of credit
    
    
    17
    
    
    
    32Commercial and industrial loans
    
    
    (95
    )
    
    
    (979
    )Insurance premium loans
    
    
    15
    
    
    
    50Other loans
    
    
    7
    
    
    
    4Unallocated
    
    
    402
    
    
    
    (65
    )Total provisions for loan losses
    
    
    1,367
    
    
    
    1,930Balance at end of period
    
    $
    22,015
    
    
    
    17,146
 40




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##### Table of Contents



Liquidity and Capital Resources
 Liquidity
  Capital Resources
 MinimumRequired to BeMinimum
    
    Well CapitalizedRequired for
    
    under PromptCapital
    
    CorrectiveActual
    
    Adequacy
    
    ActionRatio
    
    Purposes
    
    ProvisionsAs of March 31, 2011:Tangible capital to
tangible assets
    
    
    13.04
    %
    
    
    1.50
    %
    
    
    NA
    %Tier 1 capital (core)  (to
adjusted assets)
    
    
    13.04
    
    
    
    4.00
    
    
    
    5.00Total capital (to risk-weighted assets)
    
    
    27.55
    
    
    
    8.00
    
    
    
    10.00As of December 31, 2010:Tangible capital to
tangible assets
    
    
    13.43
    %
    
    
    1.50
    %
    
    
    NA
    %Tier 1 capital (core)  (to
adjusted assets)
    
    
    13.43
    
    
    
    4.00
    
    
    
    5.00Total capital (to risk-weighted assets)
    
    
    27.39
    
    
    
    8.00
    
    
    
    10.00
 Off-Balance Sheet Arrangements and Contractual Obligations
  41




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##### Table of Contents



One to less
    
    Three toLess than
    
    than Three
    
    less than
    
    Five YearsContractual Obligation
    
    Total
    
    One Year
    
    Years
    
    Five Years
    
    and greater(in thousands)Debt obligations (excluding capitalized leases)
    
    $
    487,479
    
    
    
    103,179
    
    
    
    170,800
    
    
    
    201,500
    
    
    
    12,000Commitments to originate loans
    
    $
    61,193
    
    
    
    61,193
    
    
    
    
    
    
    
    
    
    
    
    Commitments to fund unused lines of credit
    
    $
    13,323
    
    
    
    13,323
    
    
    
    
    
    
    
    
    
    
    
    
    42




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##### Table of Contents



ITEM 3.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   
    
    originating commercial real estate loans and multifamily loans that generally tend
to have shorter maturities and higher interest rates that generally reset at five
years;
    
    investing in shorter term investment grade corporate securities and mortgage-backed
securities; and
    
    obtaining general financing through lower-cost deposits and longer-term Federal Home
Loan Bank advances and repurchase agreements.
  Net Portfolio Value Analysis .
 Net Interest Income Analysis.
 43




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##### Table of Contents



NPVEstimatedChange in
    
    Estimated
    
    Estimated
    
    
    
    
    
    Estimated
    
    NPV/Present
    
    Net InterestInterest Rates
    
    Present Value
    
    Present Value
    
    Estimated
    
    Change In
    
    Value of
    
    Income Percent(basis points)
    
    of Assets
    
    of Liabilities
    
    NPV
    
    NPV
    
    Assets Ratio
    
    Change+400
    
    $
    2,122,281
    
    
    $
    1,809,375
    
    
    $
    312,906
    
    
    $
    (128,701
    )
    
    
    14.74
    %
    
    
    (19.03
    )%+300
    
    
    2,174,482
    
    
    
    1,838,245
    
    
    
    336,237
    
    
    
    (105,370
    )
    
    
    15.46
    
    
    
    (14.34
    )+200
    
    
    2,237,043
    
    
    
    1,868,103
    
    
    
    368,940
    
    
    
    (72,667
    )
    
    
    16.49
    
    
    
    (9.22
    )+100
    
    
    2,303,360
    
    
    
    1,898,995
    
    
    
    404,365
    
    
    
    (37,242
    )
    
    
    17.56
    
    
    
    (4.30
    )0
    
    
    2,372,576
    
    
    
    1,930,969
    
    
    
    441,607
    
    
    
    
    
    
    
    18.61
    
    
    
    -100
    
    
    2,431,200
    
    
    
    1,963,684
    
    
    
    467,516
    
    
    
    25,909
    
    
    
    19.23
    
    
    
    2.67-200
    
    
    2,460,591
    
    
    
    1,988,602
    
    
    
    471,989
    
    
    
    30,382
    
    
    
    19.18
    
    
    
    (1.51
    )
   44




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##### Table of Contents



ITEM 4.
    
    CONTROLS AND PROCEDURES
   45




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##### Table of Contents



PART II
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
  
 ITEM 1A.
    
    RISK FACTORS
  
 ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    Unregistered Sale of Equity Securities. There were no sales of unregistered securities
during the period covered by this report.(b)
    
    Use of Proceeds. Not applicable(c)
    
    Repurchases of Our Equity Securities.The following table shows the Companys repurchase of its common stock for each calendar
month in the three months ended March 31, 2011.
 (c) Total Number ofShares Purchased
    
    (d) Maximum Number(a) Total Number
    
    (b) Average
    
    as Part of Publicly
    
    of Shares that May Yetof Shares
    
    Price Paid per
    
    Announced Plans
    
    Be Purchased UnderPeriod
    
    Purchased
    
    Share
    
    or Programs (1)
    
    Plans or Programs (1)January 1, 2011, through
January 31, 2011
    
    
    134,367
    
    
    $
    13.14
    
    
    
    92,300
    
    
    
    1,860,166February 1, 2011, through
February 28, 2011
    
    
    80,000
    
    
    
    13.27
    
    
    
    80,000
    
    
    
    1,780,166March 1, 2011, through
March 31, 2011
    
    
    184,700
    
    
    
    13.54
    
    
    
    184,700
    
    
    
    1,595,466Total
    
    
    399,067
    
    
    $
    13.35
    
    
    
    357,000
 
 (1)
    
    On October 27, 2010, the Board of Directors of the Company authorized a stock
repurchase program pursuant to which the Company intends to repurchase up to 2,177,033
shares, representing approximately 5% of its then outstanding shares. The timing of the
repurchases will depend on certain factors, including but not limited to, market conditions
and prices, the Companys liquidity and capital requirements, and alternative uses of
capital. Any repurchased shares will be held as treasury stock and will be available for
general corporate purposes. The Company is conducting such repurchases in accordance with
a Rule 10b5-1 trading plan.As of March 31, 2011, under its current repurchase plan, the Company has repurchased 581,567
shares of its stock at an average price of $13.17 per share. The Company has repurchased a
total of 2,665,511 shares of its common stock (under its current and prior repurchase plans)
at an average price of $12.24 per share. 
 ITEM 3.
    
    DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4.
    
    [REMOVED AND RESERVED]
 
 ITEM 5.
    
    OTHER INFORMATION
  46




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##### Table of Contents



ITEM 6.
    
    EXHIBITS
  47




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##### Table of Contents



SIGNATURES
  NORTHFIELD BANCORP, INC.
(Registrant)Date: May 10, 2011/s/   John W. AlexanderJohn W. AlexanderChairman, President and Chief Executive Officer/s/   Steven M. KleinSteven M. KleinChief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer) 48




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##### Table of Contents



ExhibitNumber
    
    Description31.1
    
    Certification of John W. Alexander, Chairman, President and Chief Executive Officer,
Pursuant to Rule 13a-14(a) and Rule 15d-14(a).31.2
    
    Certification of Steven M. Klein, Chief Operating Officer and Chief Financial Officer,
Pursuant to Rule 13a-14(a) and Rule 15d-14(a).32
    
    Certification of John W. Alexander, Chairman, President and Chief Executive Officer,
and Steven M. Klein, Chief Operating Officer and Chief Financial Officer, Pursuant to
18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
 49