SHORT HILLS, N.J., Oct. 26, 2017 /PRNewswire/ -- Investors
Bancorp, Inc. (NASDAQ: ISBC) ("Company"), the holding company for
Investors Bank ("Bank"), reported net income of $45.8 million, or $0.16 per diluted share, for the three months
ended September 30, 2017, compared to $39.6 million, or $0.14 per diluted share, for the three months
ended June 30, 2017, and $49.9
million, or $0.17 per diluted
share, for the three months ended September 30, 2016.
For the three months ended September 30,
2016, the Company recorded an excess tax benefit of
$6.4 million, as compared to
$127,000 and $173,000 for the three months ended September 30, 2017 and June 30, 2017, respectively. The benefit is
related to the Company's stock plans accounted for in accordance
with ASU 2016-09.
For the nine months ended September 30, 2017, net income
totaled $131.5 million, or
$0.45 per diluted share, compared to
$139.7 million, or $0.46 per diluted share, for the nine months
ended September 30, 2016.
The Company also announced today that its Board of Directors
declared a cash dividend of $0.09 per
share to be paid on November 24, 2017
for stockholders of record as of November
10, 2017, representing a 12.5% increase from the prior
quarter.
Kevin Cummings, President and CEO
commented, "After a challenging second quarter, we are pleased to
report strong third quarter results, highlighted by robust earnings
per share growth of 14% over the prior quarter. Additional
positive trends for the quarter include declining expenses,
improved asset quality, deposit growth, stable margin and improved
funding metrics."
Mr. Cummings also commented on the board's decision to increase
dividends, "The board's decision to increase our dividend this
quarter reinforces our continuing commitment to create value for
our shareholders."
Performance Highlights
- Earnings per share increased 14% to $0.16 per share for the three months ended
September 30, 2017 from $0.14 per share for the three months ended
June 30, 2017.
- Net interest income for the three months ended September 30, 2017 was $170.9 million, a 2.3% increase compared to the
three months ended June 30, 2017 and
a 7.1% increase compared to the three months ended September 30, 2016.
- Net interest margin for the three months ended September 30, 2017 was 2.87% which is consistent
with three months ended June 30,
2017.
- Provision for loan losses for the three months ended
September 30, 2017 was $1.8 million compared to $6.0 million for the three months ended
June 30, 2017.
- Efficiency ratio declined to 57.60% for the three months ended
September 30, 2017 from 60.25% for
three months ended June 30, 2017.
Total non-interest expenses were $103.3
million for the three months ended September 30, 2017, a decrease of $3.0 million compared to three months ended
June 30, 2017.
- Total deposits increased $834.4
million, or 5.2%, from $16.04
billion at June 30, 2017 to
$16.88 billion at September 30, 2017. Loan to deposit ratio
declined to 118% at September 30,
2017 from 124% at June 30,
2017.
- Non-accrual loans to total loans declined to 0.63% at
September 30, 2017 compared to 0.89%
at June 30, 2017.
- During the three months ended September
30, 2017, the Company repurchased 2.5 million shares of its
outstanding common stock for approximately $33.2 million.
Financial Performance Overview
Third Quarter 2017 compared to Second Quarter
2017
For the third quarter of 2017, net income totaled $45.8 million, an increase of $6.2 million as compared to the second quarter of
2017. The changes in net income on a sequential quarter basis
are highlighted below.
Net interest income increased by $3.9
million, or 2.3%, as compared to the second quarter of
2017. Changes within interest income and expense categories
are as follows:
- An increase in interest and dividend income of $10.3 million, or 4.8%, to $225.8 million as compared to the second quarter
of 2017 primarily attributed to a 12 basis point increase in the
weighted average loan yield to 4.10%, predominately driven by
higher average yields on new loan origination volume.
- Prepayment penalties, which are included in interest income,
totaled $5.4 million for the three
months ended September 30, 2017 as
compared to $3.1 million for the
three months ended June 30,
2017.
- An increase in total interest expense of $6.4 million primarily attributable to rising
deposit and borrowing costs, as well as an increase in the average
balance of total interest-bearing liabilities of $504.7 million, or 2.7%, to $18.94 billion. The weighted average cost of
interest-bearing liabilities for the three months ended
September 30, 2017 increased 11 basis
points to 1.16%.
The net interest margin remained consistent at 2.87% for the
three months ended September 30, 2017 compared to the three
months ended June 30, 2017, primarily driven by higher loan
yields offset by increased deposit and borrowing costs.
Total non-interest income decreased by $925,000 to $8.4
million for the three months ended September 30, 2017
compared to the three months ended June 30, 2017 primarily
driven by a decrease in gain on loan sales of $480,000 and a decrease in other income of
$475,000 attributed to non-depository
investment products.
Total non-interest expenses were $103.3
million for the three months ended September 30, 2017,
a decrease of $3.0 million, or 2.8%,
as compared to the second quarter of 2017. For the three
months ended September 30, 2017, professional fees decreased
$6.4 million. The third quarter
included $5.0 million of professional
fees attributable to our bank secrecy act and anti-money laundering
("BSA") remediation efforts, a decrease of $4.5 million from the second quarter.
Resolving these matters continues to be a top priority. This
decrease was partially offset by compensation and fringe benefits
which increased $3.2 million due to
additions to our staff to support continued growth and continued
build out of our risk management and operating
infrastructure.
Income tax expense was $28.4
million for the three months ended September 30, 2017
and $24.5 million for the three
months ended June 30, 2017. The effective tax rate was
38.3% for the three months ended September 30, 2017 and 38.2%
for the three months ended June 30, 2017. Income tax
expense includes the excess tax benefits related to the Company's
stock plans of $127,000 for the three
months ended September 30, 2017 and $173,000 for three months ended June 30,
2017.
Third Quarter 2017 compared to Third Quarter
2016
For the third quarter of 2017, net income totaled $45.8 million, a decrease of $4.0 million as compared to the third quarter of
2016, however income before income tax expense increased
$2.6 million over the same
periods. The changes in net income on a year over year
quarter basis are highlighted below.
On a year over year basis, net interest income increased by
$11.3 million, or 7.1%, in the third
quarter of 2017, as compared to the third quarter of 2016 due
to:
- An increase in interest and dividend income of $27.4 million, or 13.8%, to $225.8 million as a result of a $1.93 billion increase in the average balance of
net loans from continued loan origination growth. The weighted
average yield on net loans increased 5 basis points to 4.10%
primarily driven by higher average yields on new loan origination
volume.
- Prepayment penalties, which are included in interest income,
totaled $5.4 million for the three
months ended September 30, 2017, as
compared to $4.0 million for the
three months ended September 30,
2016.
- An increase in total interest expense of $16.1 million was primarily attributed to an
increase in the average balance of interest-bearing deposits of
$1.74 billion, or 13.9%, to
$14.30 billion for the three months
ended September 30, 2017 and an
increase in the average balance of total borrowed funds of
$558.9 million, or 13.7%, to
$4.63 billion. The weighted average
cost of interest-bearing liabilities increased 23 basis points to
1.16% for the three months ended September
30, 2017.
The net interest margin decreased 13 basis points year over year
to 2.87% for the three months ended September 30, 2017 from
3.00% for the three months ended September 30, 2016.
Compared to the third quarter of 2016, total non-interest
expenses increased $11.9 million, or
13.0%, year over year. For the three months ended
September 30, 2017, compensation and fringe benefits increased
$4.0 million due to additions to our
staff to support continued growth and continued build out of our
risk management and operating infrastructure. Additionally,
advertising and promotional expenses increased $2.9 million due to our current advertising
campaigns and professional fees increased $2.5 million largely attributable to our BSA
remediation efforts. Federal insurance premiums increased
$900,000 for the three months ended
September 30, 2017.
Income tax expense was $28.4
million for the three months ended September 30, 2017
and $21.9 million for the three
months ended September 30, 2016. The effective tax rate
was 38.3% for the three months ended September 30, 2017 and
30.5% for the three months ended September 30, 2016.
Income tax expense includes the excess tax benefits related to the
Company's stock plans of $127,000 for
the three months ended September 30, 2017 and $6.4 million for the three months ended
September 30, 2016.
Nine Months Ended September 30, 2017 compared to Nine
Months Ended September 30, 2016
Net income decreased by $8.2
million year over year to $131.5
million for the nine months ended September 30,
2017. The change in net income year over year is the result
of the following:
Net interest income increased by $33.6
million, or 7.1%, as compared to the nine months ended
September 30, 2016 due to:
- Total interest and dividend income increased by $65.9 million, or 11.3%, to $651.4 million for the nine months ended
September 30, 2017 as compared to the
nine months of 2016, primarily attributed to a $2.07 billion increase in the average balance of
net loans from continued loan origination growth in the commercial
loan portfolio. This increase was partially offset by an 8 basis
point decrease in the weighted average loan yield to 4.01% impacted
partially by a decrease in prepayment penalties.
- Prepayment penalties, which are included in interest income,
totaled $11.6 million for the nine
months ended September 30, 2017, as
compared to $14.6 million for the
nine months ended September 30,
2016.
- Total interest expense increased by $32.3 million, or 28.4%, to $146.3 million for the nine months ended
September 30, 2017, as compared to
the nine months of 2016. The increase was primarily attributed to
an increase in the average balance of total interest-bearing
liabilities of $2.32 billion, or
14.4%, to $18.42 billion for the nine
months ended September 30, 2017. In
addition, the weighted average cost of interest-bearing liabilities
increased 12 basis points to 1.06% for the nine months ended
September 30, 2017.
The net interest margin decreased 14 basis points to 2.89% for
the nine months ended September 30, 2017 from 3.03% for the
nine months ended September 30, 2016, primarily driven by
higher costs of interest-bearing liabilities.
Total non-interest income was $27.4
million for the nine months ended September 30, 2017, a
decrease of $1.3 million, or 4.5%, as
compared to the nine months of 2016.
Total non-interest expenses were $309.1
million for the nine months ended September 30, 2017,
an increase of $39.5 million, or
14.7%, as compared to the nine months of 2016. Professional
fees increased $15.6 million for the
nine months ended September 30, 2017 as compared to the nine
months of 2016, largely attributable to BSA remediation efforts and
the continued risk management infrastructure enhancements.
Excluding the impact of BSA-related professional fees, total
non-interest expenses totaled $291.4
million for the nine months ended September 30,
2017. Compensation and fringe benefits increased $9.7 million for the nine months ended
September 30, 2017 as a result of additions to our staff to
support continued growth and infrastructure, especially in our risk
management area, as well as normal merit increases, partially
offset by lower pension costs. Advertising and promotional
expenses increased $5.3 million due
to our current advertising campaigns. Federal insurance
premiums increased $3.3 million for
the nine months ended September 30, 2017.
Income tax expense was $80.2
million for the nine months ended September 30, 2017
compared to $76.0 million for the
nine months ended September 30, 2016. The effective tax
rate was 37.9% for the nine months ended September 30, 2017
and 35.2% for the nine months ended September 30, 2016.
Income tax expense includes the excess tax benefits related to the
Company's stock plans of $1.6 million
for the nine months ended September 30, 2017 and $8.2 million for the nine months ended
September 30, 2016.
Asset Quality
Our provision is primarily a result of the inherent credit risk
in our overall portfolio, the growth of the loan portfolio, and the
level of non-accrual loans and charge-offs. For the three
months ended September 30, 2017, our provision for loan losses
was $1.8 million, compared to
$6.0 million for the three months
ended June 30, 2017 and $5.0
million for the three months ended September 30,
2016. For the three months ended September 30, 2017, net
charge-offs were $1.7 million
compared to $6.9 million for the
three months ended June 30, 2017 and $1.8 million for the three months ended
September 30, 2016. Our provision for loan losses was
$11.8 million for the nine months
ended September 30, 2017 compared with $15.0 million for the nine months ended
September 30, 2016. For the nine months ended
September 30, 2017, net charge-offs were $10.1 million compared to $10.0 million for the the nine months ended
September 30, 2016.
Our accruing past due loans and non-accrual loans discussed
below exclude certain purchased credit impaired ("PCI") loans,
primarily consisting of loans recorded in the Company's
acquisitions. Under U.S. GAAP, the PCI loans (acquired at a
discount that is due, in part, to credit quality) are not subject
to delinquency classification in the same manner as loans
originated by the Bank.
Total non-accrual loans were $125.7
million, or 0.63% of total loans, at September 30, 2017
compared to $177.4 million, or 0.89%
of total loans, at June 30, 2017 and $94.3 million, or 0.50% of total loans, at
December 31, 2016. During the three months ended
September 30, 2017, we sold a $48.1
million commercial loan relationship which was included in
our non-accrual loans at June 30,
2017. We continue to proactively and diligently work to
resolve our troubled loans in light of the impact that low economic
growth, rising interest rates and regional real estate market
conditions may have on our portfolio.
At September 30, 2017, there were $47.1 million of loans deemed as troubled debt
restructured loans ("TDRs"), of which $27.7
million were residential and consumer loans, $18.1 million were commercial real estate loans
and $1.3 million were commercial and
industrial loans. TDRs of $13.4
million were classified as accruing and $33.7 million were classified as non-accrual at
September 30, 2017.
The following table sets forth non-accrual loans and accruing
past due loans (excluding PCI loans and loans held for sale) on the
dates indicated as well as certain asset quality ratios.
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
September 30,
2016
|
|
# of loans
|
|
amount
|
|
# of loans
|
|
amount
|
|
# of loans
|
|
amount
|
|
# of loans
|
|
amount
|
|
# of loans
|
|
amount
|
|
(Dollars in
millions)
|
Accruing past due
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 to 59 days past
due:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
108
|
|
|
$
|
21.5
|
|
|
86
|
|
|
$
|
14.2
|
|
|
103
|
|
|
$
|
29.2
|
|
|
116
|
|
|
$
|
27.1
|
|
|
110
|
|
|
$
|
18.9
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
10
|
|
|
15.8
|
|
|
4
|
|
|
10.4
|
|
|
6
|
|
|
14.7
|
|
|
2
|
|
|
5.3
|
|
|
3
|
|
|
4.1
|
|
Commercial real
estate
|
6
|
|
|
32.3
|
|
|
2
|
|
|
1.9
|
|
|
13
|
|
|
38.8
|
|
|
3
|
|
|
6.4
|
|
|
11
|
|
|
24.0
|
|
Commercial and
industrial
|
8
|
|
|
0.6
|
|
|
6
|
|
|
0.6
|
|
|
6
|
|
|
1.1
|
|
|
4
|
|
|
0.8
|
|
|
6
|
|
|
1.4
|
|
Total 30 to 59 days
past due
|
132
|
|
|
70.2
|
|
|
98
|
|
|
27.1
|
|
|
128
|
|
|
83.8
|
|
|
125
|
|
|
39.6
|
|
|
130
|
|
|
48.4
|
|
60 to 89 days past
due:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
47
|
|
|
7.7
|
|
|
35
|
|
|
5.8
|
|
|
51
|
|
|
8.3
|
|
|
57
|
|
|
10.8
|
|
|
62
|
|
|
11.1
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1.1
|
|
|
1
|
|
|
1.1
|
|
Commercial real
estate
|
2
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
8.4
|
|
|
8
|
|
|
32.0
|
|
|
3
|
|
|
16.4
|
|
Commercial and
industrial
|
2
|
|
|
1.4
|
|
|
1
|
|
|
0.3
|
|
|
1
|
|
|
0.6
|
|
|
4
|
|
|
0.9
|
|
|
3
|
|
|
0.4
|
|
Total 60 to 89 days
past due
|
51
|
|
|
10.1
|
|
|
36
|
|
|
6.1
|
|
|
59
|
|
|
17.3
|
|
|
70
|
|
|
44.8
|
|
|
69
|
|
|
29.0
|
|
Total accruing past
due loans
|
183
|
|
|
$
|
80.3
|
|
|
134
|
|
|
$
|
33.2
|
|
|
187
|
|
|
$
|
101.1
|
|
|
195
|
|
|
$
|
84.4
|
|
|
199
|
|
|
$
|
77.4
|
|
Non-accrual:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
417
|
|
|
$
|
74.3
|
|
|
447
|
|
|
$
|
81.0
|
|
|
470
|
|
|
$
|
76.2
|
|
|
478
|
|
|
$
|
79.9
|
|
|
481
|
|
|
$
|
86.1
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
4
|
|
|
14.2
|
|
|
6
|
|
|
19.0
|
|
|
2
|
|
|
0.5
|
|
|
2
|
|
|
0.5
|
|
|
1
|
|
|
0.2
|
|
Commercial real
estate
|
31
|
|
|
35.3
|
|
|
36
|
|
|
75.6
|
|
|
24
|
|
|
8.2
|
|
|
24
|
|
|
9.2
|
|
|
29
|
|
|
8.9
|
|
Commercial and
industrial
|
6
|
|
|
1.9
|
|
|
5
|
|
|
1.8
|
|
|
4
|
|
|
2.2
|
|
|
8
|
|
|
4.7
|
|
|
6
|
|
|
2.3
|
|
Total non-accrual
loans
|
458
|
|
|
$
|
125.7
|
|
|
494
|
|
|
$
|
177.4
|
|
|
500
|
|
|
$
|
87.1
|
|
|
512
|
|
|
$
|
94.3
|
|
|
517
|
|
|
$
|
97.5
|
|
Accruing troubled
debt
restructured loans
|
58
|
|
|
$
|
13.4
|
|
|
45
|
|
|
$
|
11.7
|
|
|
47
|
|
|
$
|
12.2
|
|
|
42
|
|
|
$
|
9.4
|
|
|
31
|
|
|
$
|
8.8
|
|
Non-accrual loans to
total loans
|
|
|
0.63
|
%
|
|
|
|
0.89
|
%
|
|
|
|
0.45
|
%
|
|
|
|
0.50
|
%
|
|
|
|
0.53
|
%
|
Allowance for loan
losses as a
percent of non-accrual loans
|
|
|
183.09
|
%
|
|
|
|
129.68
|
%
|
|
|
|
265.16
|
%
|
|
|
|
242.24
|
%
|
|
|
|
229.31
|
%
|
Allowance for loan
losses as a
percent of total loans
|
|
|
1.15
|
%
|
|
|
|
1.16
|
%
|
|
|
|
1.18
|
%
|
|
|
|
1.21
|
%
|
|
|
|
1.22
|
%
|
Balance Sheet Summary
Total assets increased by $1.61
billion, or 6.9%, to $24.78
billion at September 30, 2017 from December 31,
2016. Net loans increased $1.14
billion, or 6.1%, to $19.71
billion at September 30, 2017, and securities increased
by $267.2 million, or 7.8%, to
$3.68 billion at September 30,
2017 from December 31, 2016.
The detail of the loan portfolio (including PCI loans) is
below:
|
September 30,
2017
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(In
thousands)
|
Commercial
Loans:
|
|
|
|
|
|
Multi-family
loans
|
$
|
7,854,759
|
|
|
7,926,924
|
|
|
7,459,131
|
|
Commercial real
estate loans
|
4,667,113
|
|
|
4,721,285
|
|
|
4,452,300
|
|
Commercial and
industrial loans
|
1,501,235
|
|
|
1,467,561
|
|
|
1,275,283
|
|
Construction
loans
|
397,929
|
|
|
360,377
|
|
|
314,843
|
|
Total commercial
loans
|
14,421,036
|
|
|
14,476,147
|
|
|
13,501,557
|
|
Residential mortgage
loans
|
4,872,872
|
|
|
4,757,605
|
|
|
4,711,880
|
|
Consumer and
other
|
655,021
|
|
|
629,404
|
|
|
597,265
|
|
Total
Loans
|
19,948,929
|
|
|
19,863,156
|
|
|
18,810,702
|
|
Premiums on purchased
loans and deferred loan fees, net
|
(11,701)
|
|
|
(11,922)
|
|
|
(12,474)
|
|
Allowance for loan
losses
|
(230,071)
|
|
|
(230,028)
|
|
|
(228,373)
|
|
Net loans
|
$
|
19,707,157
|
|
|
19,621,206
|
|
|
18,569,855
|
|
During the nine months ended September 30, 2017, we
originated $999.7 million in
multi-family loans, $637.3 million in
commercial real estate loans, $444.2
million in commercial and industrial loans, $388.5 million in residential loans, $344.6 million in construction loans and
$101.5 million in consumer and other
loans. This increase in loans reflects our continued focus on
generating multi-family loans, commercial real estate loans and
commercial and industrial loans, which was partially offset by pay
downs and payoffs of loans. Our loans are primarily on
properties and businesses located in New
Jersey and New York.
In addition to the loans originated for our portfolio, our
mortgage subsidiary, Investors Home Mortgage Co., originated
residential mortgage loans for sale to third parties totaling
$126.8 million during the nine months
ended September 30, 2017.
The allowance for loan losses increased by $1.7 million to $230.1
million at September 30, 2017 from $228.4 million at December 31, 2016.
The increase in our allowance for loan losses from
December 31, 2016 is due to the inherent credit risk in our
overall portfolio, the growth of the loan portfolio, and the level
of non-accrual loans and charge-offs. Future increases in the
allowance for loan losses may be necessary based on the growth and
composition of the loan portfolio, the level of loan delinquency
and the economic conditions in our lending area. At
September 30, 2017, our allowance for loan losses as a percent
of total loans was 1.15%.
Securities increased by $267.2
million, or 7.8%, to $3.68
billion at September 30, 2017 from $3.42 billion at December 31, 2016.
This increase was a result of purchases partially offset by
paydowns and sales.
Deposits increased by $1.60
billion, or 10.4%, from $15.28
billion at December 31, 2016 to $16.88 billion at September 30,
2017. The increase is partially attributed to the
deposit campaign in the third quarter. Checking accounts
increased $806.6 million to
$6.90 billion at September 30,
2017 from $6.09 billion at
December 31, 2016. Core deposits (savings, checking and
money market) represented approximately 78% of our total deposit
portfolio at September 30, 2017.
Borrowed funds decreased by $61.4
million, or 1.4%, to $4.48
billion at September 30, 2017 from $4.55 billion at December 31, 2016.
Short term borrowings were reduced as a result of our deposit
gathering efforts during the third quarter of 2017.
Stockholders' equity increased by $31.9
million to $3.16 billion at
September 30, 2017 from $3.12
billion at December 31, 2016. The increase is
primarily attributed to net income of $131.5
million and share-based plan costs of $27.6 million for the nine months ended
September 30, 2017. These increases were partially
offset by cash dividends of $0.24 per
share totaling $74.1 million and the
repurchase of 4.4 million shares of common stock for $57.8 million during the nine months ended
September 30, 2017. The Bank remains significantly above
FDIC "well capitalized" standards, with Tier 1 Leverage Ratio of
11.38% at September 30, 2017.
About the Company
Investors Bancorp, Inc. is the holding company for Investors
Bank, which as of September 30, 2017 operates from its
corporate headquarters in Short Hills,
New Jersey and 155 branches located throughout New Jersey and New
York.
Earnings Conference Call October 27,
2017 at 11:00 a.m.
(ET)
The Company, as previously announced, will host an earnings
conference call on Friday, October 27,
2017 at 11:00 a.m. (ET).
The toll-free dial-in number is: (866) 218-2404. Callers who
pre-register will bypass the live operator and may avoid any delays
in joining the conference call. Participants will immediately
receive an online confirmation, an email and a calendar invitation
for the event.
Conference Call Pre-registration link:
http://dpregister.com/10113013
A telephone replay will be available beginning on October 27, 2017 from 1:00
p.m. (ET) through 9:00 a.m.
(ET) on January 27,
2018. The replay number is (877) 344-7529 password
10113013. The conference call will also be simultaneously
webcast on the Company's website
www.myinvestorsbank.com and archived for one year.
Forward Looking Statements
Certain statements contained herein are "forward looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of
1934. Such forward looking statements may be identified by
reference to a future period or periods, or by the use of forward
looking terminology, such as "may," "will," "believe," "expect,"
"estimate," "anticipate," "continue," or similar terms or
variations on those terms, or the negative of those terms.
Forward looking statements are subject to numerous risks and
uncertainties, as described in the "Risk Factors" disclosures
included in our Annual Report on Form 10-K, as supplemented in
quarterly reports on Form 10-Q, including, but not limited to,
those related to the real estate and economic environment,
particularly in the market areas in which the Company operates,
competitive products and pricing, fiscal and monetary policies of
the U.S. Government, changes in government regulations affecting
financial institutions, including regulatory fees and capital
requirements, changes in prevailing interest rates, acquisitions
and the integration of acquired businesses, credit risk management,
asset-liability management, the financial and securities markets
and the availability of and costs associated with sources of
liquidity.
The Company wishes to caution readers not to place undue
reliance on any such forward looking statements, which speak only
as of the date made. The Company wishes to advise readers
that the factors listed above could affect the Company's financial
performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements
expressed with respect to future periods in any current
statements. The Company does not undertake and specifically
declines any obligation to publicly release the results of any
revisions that may be made to any forward looking statements to
reflect events or circumstances after the date of such statements
or to reflect the occurrence of anticipated or unanticipated
events.
Non-GAAP Financial Measures
We believe that providing certain non-GAAP financial measures
provides investors with information useful in understanding our
financial performance, our performance trends and financial
position. We utilize these measures for internal planning and
forecasting purposes. We believe that our presentation and
discussion, together with the accompanying reconciliations,
provides a complete understanding of factors and trends affecting
our business and allows investors to view performance in a manner
similar to management. These non-GAAP measures should not be
considered a substitute for GAAP basis measures and results, and we
strongly encourage investors to review our consolidated financial
statements in their entirety and not to rely on any single
financial measure. Because non-GAAP financial measures are
not standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names.
Contact:
|
Marianne
Wade
|
|
(973)
924-5100
|
|
investorrelations@myinvestorsbank.com
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Assets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
413,322
|
|
|
213,907
|
|
|
164,178
|
|
Securities
available-for-sale, at estimated fair value
|
1,949,429
|
|
|
1,852,394
|
|
|
1,660,433
|
|
Securities
held-to-maturity, net (estimated fair value of $1,769,179,
$1,680,533 and $1,782,801 at September 30, 2017, June 30, 2017
and
December 31, 2016, respectively)
|
1,733,751
|
|
|
1,647,196
|
|
|
1,755,556
|
|
Loans receivable,
net
|
19,707,157
|
|
|
19,621,206
|
|
|
18,569,855
|
|
Loans
held-for-sale
|
6,975
|
|
|
7,034
|
|
|
38,298
|
|
Federal Home Loan
Bank stock
|
232,814
|
|
|
245,394
|
|
|
237,878
|
|
Accrued interest
receivable
|
73,203
|
|
|
69,577
|
|
|
65,969
|
|
Other real estate
owned
|
4,336
|
|
|
4,957
|
|
|
4,492
|
|
Office properties and
equipment, net
|
177,569
|
|
|
178,071
|
|
|
177,417
|
|
Net deferred tax
asset
|
222,573
|
|
|
217,398
|
|
|
222,277
|
|
Bank owned life
insurance
|
154,719
|
|
|
153,784
|
|
|
161,940
|
|
Goodwill and
intangible assets
|
99,567
|
|
|
100,648
|
|
|
101,839
|
|
Other
assets
|
6,588
|
|
|
4,530
|
|
|
14,543
|
|
Total
assets
|
$
|
24,782,003
|
|
|
24,316,096
|
|
|
23,174,675
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$
|
16,876,469
|
|
|
16,042,045
|
|
|
15,280,833
|
|
Borrowed
funds
|
4,484,869
|
|
|
4,882,330
|
|
|
4,546,251
|
|
Advance payments by
borrowers for taxes and insurance
|
125,505
|
|
|
113,993
|
|
|
105,851
|
|
Other
liabilities
|
140,028
|
|
|
122,809
|
|
|
118,495
|
|
Total
liabilities
|
21,626,871
|
|
|
21,161,177
|
|
|
20,051,430
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock,
$0.01 par value, 100,000,000 authorized shares;
none issued
|
—
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 1,000,000,000 shares authorized;
359,070,852 issued at September 30, 2017, June 30, 2017 and
December 31, 2016; 306,176,459, 308,391,300 and 309,449,388
outstanding at September 30, 2017, June 30, 2017 and December
31, 2016, respectively
|
3,591
|
|
|
3,591
|
|
|
3,591
|
|
Additional paid-in
capital
|
2,776,971
|
|
|
2,770,881
|
|
|
2,765,732
|
|
Retained
earnings
|
1,111,856
|
|
|
1,090,467
|
|
|
1,053,750
|
|
Treasury stock, at
cost; 52,894,393, 50,679,552 and 49,621,464
shares at September 30, 2017, June 30, 2017 and December 31,
2016, respectively
|
(632,394)
|
|
|
(602,846)
|
|
|
(587,974)
|
|
Unallocated common
stock held by the employee stock ownership
plan
|
(85,007)
|
|
|
(85,756)
|
|
|
(87,254)
|
|
Accumulated other
comprehensive loss
|
(19,885)
|
|
|
(21,418)
|
|
|
(24,600)
|
|
Total stockholders'
equity
|
3,155,132
|
|
|
3,154,919
|
|
|
3,123,245
|
|
Total liabilities and
stockholders' equity
|
$
|
24,782,003
|
|
|
24,316,096
|
|
|
23,174,675
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Consolidated
Statements of Income
|
(unaudited)
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September 30,
2016
|
|
(Dollars in
thousands, except per share data)
|
Interest and dividend
income:
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and
loans held-for-sale
|
$
|
201,069
|
|
|
192,891
|
|
|
179,234
|
|
|
579,921
|
|
|
527,989
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
GSE
obligations
|
175
|
|
|
28
|
|
|
8
|
|
|
211
|
|
|
27
|
|
|
|
Mortgage-backed
securities
|
17,829
|
|
|
17,274
|
|
|
14,653
|
|
|
51,812
|
|
|
44,581
|
|
|
|
Equity
|
30
|
|
|
30
|
|
|
49
|
|
|
108
|
|
|
147
|
|
|
|
Municipal bonds and
other debt
|
2,229
|
|
|
2,136
|
|
|
2,039
|
|
|
8,433
|
|
|
6,048
|
|
|
Interest-bearing
deposits
|
875
|
|
|
177
|
|
|
76
|
|
|
1,159
|
|
|
253
|
|
|
Federal Home Loan
Bank stock
|
3,557
|
|
|
2,972
|
|
|
2,315
|
|
|
9,722
|
|
|
6,396
|
|
|
|
Total interest and
dividend income
|
225,764
|
|
|
215,508
|
|
|
198,374
|
|
|
651,366
|
|
|
585,441
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
32,300
|
|
|
25,336
|
|
|
20,326
|
|
|
79,820
|
|
|
61,639
|
|
|
Borrowed
funds
|
22,553
|
|
|
23,116
|
|
|
18,442
|
|
|
66,460
|
|
|
52,328
|
|
|
|
Total interest
expense
|
54,853
|
|
|
48,452
|
|
|
38,768
|
|
|
146,280
|
|
|
113,967
|
|
|
|
Net interest
income
|
170,911
|
|
|
167,056
|
|
|
159,606
|
|
|
505,086
|
|
|
471,474
|
|
Provision for loan
losses
|
1,750
|
|
|
6,000
|
|
|
5,000
|
|
|
11,750
|
|
|
15,000
|
|
|
|
Net interest income
after provision for loan
losses
|
169,161
|
|
|
161,056
|
|
|
154,606
|
|
|
493,336
|
|
|
456,474
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Fees and service
charges
|
5,076
|
|
|
4,962
|
|
|
4,108
|
|
|
14,966
|
|
|
12,925
|
|
|
Income on bank owned
life insurance
|
935
|
|
|
1,166
|
|
|
1,006
|
|
|
2,826
|
|
|
3,267
|
|
|
Gain on loans,
net
|
726
|
|
|
1,206
|
|
|
1,401
|
|
|
2,924
|
|
|
3,516
|
|
|
Gain on securities
transactions
|
—
|
|
|
48
|
|
|
72
|
|
|
1,275
|
|
|
3,100
|
|
|
Gain (loss) on sales
of other real estate
owned, net
|
446
|
|
|
251
|
|
|
35
|
|
|
871
|
|
|
(67)
|
|
|
Other
income
|
1,212
|
|
|
1,687
|
|
|
1,898
|
|
|
4,556
|
|
|
5,956
|
|
|
|
Total non-interest
income
|
8,395
|
|
|
9,320
|
|
|
8,520
|
|
|
27,418
|
|
|
28,697
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
fringe benefits
|
57,052
|
|
|
53,881
|
|
|
53,051
|
|
|
168,207
|
|
|
158,475
|
|
|
Advertising and
promotional expense
|
4,355
|
|
|
4,516
|
|
|
1,495
|
|
|
10,956
|
|
|
5,640
|
|
|
Office occupancy and
equipment expense
|
14,589
|
|
|
14,333
|
|
|
14,099
|
|
|
43,769
|
|
|
41,612
|
|
|
Federal insurance
premiums
|
4,500
|
|
|
3,900
|
|
|
3,600
|
|
|
12,110
|
|
|
8,800
|
|
|
General and
administrative
|
691
|
|
|
842
|
|
|
641
|
|
|
2,267
|
|
|
2,407
|
|
|
Professional
fees
|
8,140
|
|
|
14,580
|
|
|
5,673
|
|
|
30,141
|
|
|
14,493
|
|
|
Data processing and
communication
|
5,719
|
|
|
5,914
|
|
|
5,299
|
|
|
17,493
|
|
|
15,821
|
|
|
Other operating
expenses
|
8,228
|
|
|
8,302
|
|
|
7,540
|
|
|
24,157
|
|
|
22,304
|
|
|
|
Total non-interest
expenses
|
103,274
|
|
|
106,268
|
|
|
91,398
|
|
|
309,100
|
|
|
269,552
|
|
|
|
Income before income
tax expense
|
74,282
|
|
|
64,108
|
|
|
71,728
|
|
|
211,654
|
|
|
215,619
|
|
Income tax
expense
|
28,437
|
|
|
24,475
|
|
|
21,878
|
|
|
80,156
|
|
|
75,958
|
|
|
|
Net income
|
$
|
45,845
|
|
|
39,633
|
|
|
49,850
|
|
|
131,498
|
|
|
139,661
|
|
Basic earnings per
share
|
$0.16
|
|
0.14
|
|
|
0.17
|
|
|
0.45
|
|
|
0.47
|
|
Diluted earnings per
share
|
$0.16
|
|
0.14
|
|
|
0.17
|
|
|
0.45
|
|
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
289,715,414
|
|
|
291,127,119
|
|
|
292,000,061
|
|
|
290,670,601
|
|
|
299,873,985
|
|
|
Diluted weighted
average shares outstanding
|
290,890,307
|
|
|
293,130,285
|
|
|
294,673,452
|
|
|
292,489,906
|
|
|
303,297,117
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
For the Three
Months Ended
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
|
|
Average
Outstanding
Balance
|
Interest
Earned/Paid
|
Weighted
Average
Yield/Rate
|
|
Average
Outstanding
Balance
|
Interest
Earned/Paid
|
Weighted
Average
Yield/Rate
|
|
Average
Outstanding
Balance
|
Interest
Earned/Paid
|
Weighted
Average
Yield/Rate
|
|
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning cash
accounts
|
$
|
379,670
|
|
875
|
|
0.92
|
%
|
|
$
|
162,787
|
|
177
|
|
0.43
|
%
|
|
$
|
129,226
|
|
76
|
|
0.24
|
%
|
|
Securities
available-for-sale
|
1,901,626
|
|
9,674
|
|
2.03
|
%
|
|
1,798,763
|
|
8,989
|
|
2.00
|
%
|
|
1,424,338
|
|
6,315
|
|
1.77
|
%
|
|
Securities
held-to-maturity
|
1,672,675
|
|
10,589
|
|
2.53
|
%
|
|
1,672,517
|
|
10,479
|
|
2.51
|
%
|
|
1,815,288
|
|
10,434
|
|
2.30
|
%
|
|
Net loans
|
19,633,388
|
|
201,069
|
|
4.10
|
%
|
|
19,407,939
|
|
192,891
|
|
3.98
|
%
|
|
17,707,883
|
|
179,234
|
|
4.05
|
%
|
|
Federal Home Loan
Bank stock
|
241,033
|
|
3,557
|
|
5.90
|
%
|
|
259,497
|
|
2,972
|
|
4.58
|
%
|
|
216,813
|
|
2,315
|
|
4.27
|
%
|
|
Total
interest-earning assets
|
23,828,392
|
|
225,764
|
|
3.79
|
%
|
|
23,301,503
|
|
215,508
|
|
3.70
|
%
|
|
21,293,548
|
|
198,374
|
|
3.73
|
%
|
Non-interest earning
assets
|
759,203
|
|
|
|
|
761,432
|
|
|
|
|
778,244
|
|
|
|
|
Total
assets
|
|
$
|
24,587,595
|
|
|
|
|
$
|
24,062,935
|
|
|
|
|
$
|
22,071,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,076,769
|
|
2,174
|
|
0.42
|
%
|
|
$
|
2,120,219
|
|
2,045
|
|
0.39
|
%
|
|
$
|
2,104,583
|
|
1,577
|
|
0.30
|
%
|
|
Interest-bearing
checking
|
4,422,930
|
|
10,883
|
|
0.98
|
%
|
|
4,266,755
|
|
8,346
|
|
0.78
|
%
|
|
3,472,472
|
|
4,451
|
|
0.51
|
%
|
|
Money market
accounts
|
4,320,547
|
|
9,478
|
|
0.88
|
%
|
|
4,175,137
|
|
8,104
|
|
0.78
|
%
|
|
3,971,339
|
|
6,605
|
|
0.67
|
%
|
|
Certificates of
deposit
|
3,481,135
|
|
9,765
|
|
1.12
|
%
|
|
2,887,454
|
|
6,841
|
|
0.95
|
%
|
|
3,009,330
|
|
7,693
|
|
1.02
|
%
|
|
Total
interest-bearing deposits
|
14,301,381
|
|
32,300
|
|
0.90
|
%
|
|
13,449,565
|
|
25,336
|
|
0.75
|
%
|
|
12,557,724
|
|
20,326
|
|
0.65
|
%
|
|
Borrowed
funds
|
4,633,628
|
|
22,553
|
|
1.95
|
%
|
|
4,980,705
|
|
23,116
|
|
1.86
|
%
|
|
4,074,743
|
|
18,442
|
|
1.81
|
%
|
|
Total
interest-bearing liabilities
|
18,935,009
|
|
54,853
|
|
1.16
|
%
|
|
18,430,270
|
|
48,452
|
|
1.05
|
%
|
|
16,632,467
|
|
38,768
|
|
0.93
|
%
|
Non-interest-bearing
liabilities
|
2,485,667
|
|
|
|
|
2,458,208
|
|
|
|
|
2,316,873
|
|
|
|
|
Total
liabilities
|
21,420,676
|
|
|
|
|
20,888,478
|
|
|
|
|
18,949,340
|
|
|
|
Stockholders'
equity
|
3,166,919
|
|
|
|
|
3,174,457
|
|
|
|
|
3,122,452
|
|
|
|
|
Total liabilities
and
stockholders' equity
|
$
|
24,587,595
|
|
|
|
|
$
|
24,062,935
|
|
|
|
|
$
|
22,071,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
170,911
|
|
|
|
|
$
|
167,056
|
|
|
|
|
$
|
159,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.63
|
%
|
|
|
|
2.65
|
%
|
|
|
|
2.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
|
4,893,383
|
|
|
|
|
$
|
4,871,233
|
|
|
|
|
$
|
4,661,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.87
|
%
|
|
|
|
2.87
|
%
|
|
|
|
3.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total
interest-bearing liabilities
|
1.26
|
|
X
|
|
|
1.26
|
|
X
|
|
|
1.28
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
Average
Outstanding
Balance
|
Interest
Earned/Paid
|
Weighted
Average
Yield/Rate
|
|
Average
Outstanding
Balance
|
Interest
Earned/Paid
|
Weighted
Average
Yield/Rate
|
|
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Interest-earning cash
accounts
|
$
|
229,729
|
|
1,159
|
|
0.67
|
%
|
|
$
|
141,230
|
|
253
|
|
0.24
|
%
|
|
Securities
available-for-sale
|
1,807,962
|
|
26,959
|
|
1.99
|
%
|
|
1,339,122
|
|
18,350
|
|
1.83
|
%
|
|
Securities
held-to-maturity
|
1,689,790
|
|
33,605
|
|
2.65
|
%
|
|
1,856,318
|
|
32,453
|
|
2.33
|
%
|
|
Net loans
|
19,291,939
|
|
579,921
|
|
4.01
|
%
|
|
17,218,547
|
|
527,989
|
|
4.09
|
%
|
|
Federal Home Loan
Bank stock
|
247,228
|
|
9,722
|
|
5.24
|
%
|
|
197,958
|
|
6,396
|
|
4.31
|
%
|
|
|
Total
interest-earning assets
|
23,266,648
|
|
651,366
|
|
3.73
|
%
|
|
20,753,175
|
|
585,441
|
|
3.76
|
%
|
Non-interest earning
assets
|
758,616
|
|
|
|
|
774,102
|
|
|
|
|
|
Total
assets
|
$
|
24,025,264
|
|
|
|
|
$
|
21,527,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,100,918
|
|
6,053
|
|
0.38
|
%
|
|
$
|
2,099,960
|
|
4,684
|
|
0.30
|
%
|
|
Interest-bearing
checking
|
4,265,758
|
|
25,712
|
|
0.80
|
%
|
|
3,207,413
|
|
11,198
|
|
0.47
|
%
|
|
Money market
accounts
|
4,225,519
|
|
24,772
|
|
0.78
|
%
|
|
3,868,155
|
|
18,884
|
|
0.65
|
%
|
|
Certificates of
deposit
|
3,086,739
|
|
23,283
|
|
1.01
|
%
|
|
3,258,702
|
|
26,873
|
|
1.10
|
%
|
|
Total interest
bearing deposits
|
13,678,934
|
|
79,820
|
|
0.78
|
%
|
|
12,434,230
|
|
61,639
|
|
0.66
|
%
|
|
Borrowed
funds
|
4,744,701
|
|
66,460
|
|
1.87
|
%
|
|
3,667,473
|
|
52,328
|
|
1.90
|
%
|
|
|
Total
interest-bearing liabilities
|
18,423,635
|
|
146,280
|
|
1.06
|
%
|
|
16,101,703
|
|
113,967
|
|
0.94
|
%
|
Non-interest bearing
liabilities
|
2,436,893
|
|
|
|
|
2,234,692
|
|
|
|
|
|
Total
liabilities
|
20,860,528
|
|
|
|
|
18,336,395
|
|
|
|
Stockholders'
equity
|
3,164,736
|
|
|
|
|
3,190,882
|
|
|
|
|
|
Total liabilities and
stockholders'
equity
|
$
|
24,025,264
|
|
|
|
|
$
|
21,527,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
505,086
|
|
|
|
|
$
|
471,474
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.67
|
%
|
|
|
|
2.82
|
%
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
|
4,843,013
|
|
|
|
|
$
|
4,651,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.89
|
%
|
|
|
|
3.03
|
%
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total
interest-bearing liabilities
|
1.26
|
|
X
|
|
|
1.29
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Selected Performance
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.75
|
%
|
|
0.66
|
%
|
|
0.90
|
%
|
|
0.73
|
%
|
|
0.87
|
%
|
Return on average
equity (1)
|
5.79
|
%
|
|
4.99
|
%
|
|
6.39
|
%
|
|
5.54
|
%
|
|
5.84
|
%
|
Return on average
tangible equity (1)
|
5.98
|
%
|
|
5.16
|
%
|
|
6.60
|
%
|
|
5.72
|
%
|
|
6.03
|
%
|
Interest rate
spread
|
2.63
|
%
|
|
2.65
|
%
|
|
2.80
|
%
|
|
2.67
|
%
|
|
2.82
|
%
|
Net interest
margin
|
2.87
|
%
|
|
2.87
|
%
|
|
3.00
|
%
|
|
2.89
|
%
|
|
3.03
|
%
|
Efficiency
ratio
|
57.60
|
%
|
|
60.25
|
%
|
|
54.36
|
%
|
|
58.05
|
%
|
|
53.89
|
%
|
Non-interest expense
to average total assets
|
1.68
|
%
|
|
1.77
|
%
|
|
1.66
|
%
|
|
1.72
|
%
|
|
1.67
|
%
|
Average
interest-earning assets to average
interest-bearing liabilities
|
1.26
|
|
|
1.26
|
|
|
1.28
|
|
|
1.26
|
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 30,
2016 ratios have been revised to reflect the impact of the
Company's adoption of ASU No. 2016-09 in December 2016.
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Selected Financial
Ratios and Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets
|
|
0.58
|
%
|
|
0.80
|
%
|
|
0.47
|
%
|
|
|
Non-performing loans
as a percent of total loans
|
|
0.70
|
%
|
|
0.95
|
%
|
|
0.55
|
%
|
|
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
183.09
|
%
|
|
129.68
|
%
|
|
242.24
|
%
|
|
|
Allowance for loan
losses as a percent of total loans
|
|
1.15
|
%
|
|
1.16
|
%
|
|
1.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio
(1)
|
|
|
11.38
|
%
|
|
11.57
|
%
|
|
12.03
|
%
|
|
|
Common equity tier 1
risk-based (1)
|
|
|
14.29
|
%
|
|
14.16
|
%
|
|
14.75
|
%
|
|
|
Tier 1 Risk-Based
Capital (1)
|
|
|
14.29
|
%
|
|
14.16
|
%
|
|
14.75
|
%
|
|
|
Total Risk-Based
Capital (1)
|
|
|
15.47
|
%
|
|
15.33
|
%
|
|
15.99
|
%
|
|
|
Equity to total
assets (period end)
|
|
|
12.73
|
%
|
|
12.97
|
%
|
|
13.48
|
%
|
|
|
Average equity to
average assets
|
|
|
12.88
|
%
|
|
13.19
|
%
|
|
13.69
|
%
|
|
|
Tangible capital to
tangible assets (2)
|
|
|
12.38
|
%
|
|
12.61
|
%
|
|
13.10
|
%
|
|
|
Book value per common
share (2)
|
|
|
$
|
10.74
|
|
|
$
|
10.66
|
|
|
$
|
10.53
|
|
|
|
Tangible book value
per common share (2)
|
|
|
$
|
10.40
|
|
|
$
|
10.32
|
|
|
$
|
10.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Number of full
service offices
|
|
|
155
|
|
|
154
|
|
|
151
|
|
|
|
Full time equivalent
employees
|
|
|
1,973
|
|
|
1,943
|
|
|
1,829
|
|
|
|
|
|
|
|
|
(1) Ratios are for
Investors Bank and do not include capital retained at the holding
company level.
|
|
|
(2) See Non GAAP
Reconciliation.
|
|
|
|
|
Investors Bancorp,
Inc.
|
Non GAAP
Reconciliation
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
Book Value and
Tangible Book Value per Share Computation
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
3,155,132
|
|
|
3,154,919
|
|
|
3,123,245
|
|
Goodwill and
intangible assets
|
99,567
|
|
|
100,648
|
|
|
101,839
|
|
Tangible
stockholders' equity
|
$
|
3,055,565
|
|
|
3,054,271
|
|
|
3,021,406
|
|
|
|
|
|
|
|
Book Value per
Share Computation
|
|
|
|
|
|
Common stock
issued
|
359,070,852
|
|
|
359,070,852
|
|
|
359,070,852
|
|
Treasury
shares
|
(52,894,393)
|
|
|
(50,679,552)
|
|
|
(49,621,464)
|
|
Shares
outstanding
|
306,176,459
|
|
|
308,391,300
|
|
|
309,449,388
|
|
Unallocated ESOP
shares
|
(12,434,574)
|
|
|
(12,552,998)
|
|
|
(12,789,847)
|
|
Book value
shares
|
293,741,885
|
|
|
295,838,302
|
|
|
296,659,541
|
|
|
|
|
|
|
|
Book Value Per
Share
|
$
|
10.74
|
|
|
$
|
10.66
|
|
|
$
|
10.53
|
|
|
|
|
|
|
|
Tangible Book
Value per Share
|
$
|
10.40
|
|
|
$
|
10.32
|
|
|
$
|
10.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investors Bancorp,
Inc.
|
Non-GAAP
Reconciliation
|
(dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
Net Income and
Diluted EPS, as adjusted for tax impact of ASU
2016-09
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
74,282
|
|
|
64,108
|
|
|
71,728
|
|
|
211,654
|
|
|
215,619
|
|
Income tax
expense
|
28,437
|
|
|
24,475
|
|
|
21,878
|
|
|
80,156
|
|
|
75,958
|
|
Net income
|
$
|
45,845
|
|
|
39,633
|
|
|
49,850
|
|
|
131,498
|
|
|
139,661
|
|
Effective tax
rate
|
38.3
|
%
|
|
38.2
|
%
|
|
30.5
|
%
|
|
37.9
|
%
|
|
35.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Tax adjustment
(1)
|
$
|
(127)
|
|
|
(173)
|
|
|
(6,409)
|
|
|
(1,577)
|
|
|
(8,238)
|
|
Adjusted net
income
|
$
|
45,718
|
|
|
39,460
|
|
|
43,441
|
|
|
129,921
|
|
|
131,423
|
|
Adjusted tax
rate
|
38.5
|
%
|
|
38.4
|
%
|
|
39.4
|
%
|
|
38.6
|
%
|
|
39.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
$
|
0.16
|
|
|
0.13
|
|
|
0.15
|
|
|
0.44
|
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares
|
290,890,307
|
|
|
293,130,285
|
|
|
294,673,452
|
|
|
292,489,906
|
|
|
303,297,117
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts represent
the tax benefit related to the Company's stock plans accounted for
in accordance with ASU 2016-09.
|
View original
content:http://www.prnewswire.com/news-releases/investors-bancorp-inc-announces-third-quarter-financial-results-and-cash-dividend-300544582.html
SOURCE Investors Bancorp, Inc.