Shares of Northfield Bancorp, Inc. NFBK crafted a new 52-week high, touching $16.30 on Dec 24. The stock of this New Jersey-based firm closed the session at $16.22, reflecting a year-to-date return of 13%. The trading volume for the session was 156,930 shares.
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given the strong estimate revisions it witnessed over the last 60 days.
Growth Drivers
The recent shareholder and regulatory approvals on the acquisition of Hopewell Valley Community Bank HWDY acted as the primary growth driver for Northfield. The acquisition is set to expand Northfield’s presence in the New Jersey marketplace and boost its commercial lending capabilities.
Notably, on Dec 14, 2015, around 72.8% of Hopewell Valley shareholders approved the acquisition by Northfield in accordance with the merger agreement. The deal is expected to close early in first-quarter 2016.
Reportedly, following the completion of the transaction, it is expected that the merged entity will have combined assets of $3.6 billion, loans of $2.6 billion, and $2.4 billion in deposits. Further, Northfield will operate through 18 branches in Hunterdon, Mercer, Middlesex, and Union counties, New Jersey, and 21 branches in Staten Island and Brooklyn, New York.
Additionally, Northfield exhibited a decent performance in the recent quarter ended September 2015. The company reported earnings per share of 11 cents in the quarter, reflecting an increase of 10% year over year. The quarter recorded growth in loans and deposits and improvement in several credit metrics.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for 2015 advanced over 2% to 45 cents per share. Also, for 2016, it moved north 4% to 52 cents per share.
A couple of other top-ranked stocks in the finance space include Monroe Flagstar Bancorp Inc. FBC and TFS Financial Corp TFSL, each sporting a Zacks Rank #1 (Strong Buy).
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