Starting from little means and building up a large bank may be for some, but Northfield Bancorp (NASDAQ:NFBK) is in a position where all of the materials are already there. After last year's second-step conversion, the bank is saddled with excess capital that is depressing returns. Profitability over the next year will be low, but an increasing portfolio and efforts to return capital to shareholders through dividends and repurchase programs guarantees larger equity returns in future periods. Shares still trade slightly above tangible book value, which is fair based on current earnings, but this significantly discounts earnings potential. This isn't a bank for anyone looking for a quick turn, but patient investors may want to start thinking about...
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