SHORT HILLS, N.J., July 27, 2016 /PRNewswire/ -- Investors
Bancorp, Inc. (NASDAQ: ISBC) ("Company"), the holding company for
Investors Bank ("Bank"), reported net income of $44.4 million, or $0.15 per diluted share,
for the three months ended June 30, 2016, compared to
$43.6 million, or $0.14 per
diluted share for the three months ended March 31, 2016, and
$46.4 million, or $0.14 per diluted share for the three months
ended June 30, 2015.
For the six months ended June 30, 2016, net income totaled
$88.0 million, or $0.29 per diluted share, compared to $88.3 million, or $0.26 for the six months ended June 30,
2015.
Kevin Cummings, President and CEO
commented, "Investors' results for the second quarter were strong,
highlighted by earnings per share growth and improving asset
quality trends. We remain mindful of cost control as we continue to
grow and enhance our infrastructure."
The Company announced today that its Board of Directors declared
a cash dividend of $0.06 per share to
be paid on August 25, 2016 for
stockholders of record as of August 10,
2016, representing a 40% payout ratio for the three months
ended June 30, 2016.
Performance Highlights
- Total assets increased $528.3
million, or 2% to $21.72
billion at June 30, 2016, from
$21.19 billion at March 31, 2016.
- Net loans increased $488.1
million, or 3%, to $17.41
billion at June 30, 2016 from
$16.92 billion at March 31, 2016. During the three months ended
June 30, 2016, we originated
$639.0 million in multi-family loans,
$288.5 million in commercial and
industrial loans, $144.4 million in
construction loans, $131.7 million in
residential loans, $122.9 million in
commercial real estate loans and $110.1
million in consumer and other loans.
- Deposits increased by $224.5
million, or 2% from $14.20
billion at March 31, 2016 to
$14.43 billion at June 30, 2016. Core deposit accounts (savings,
checking and money market) represent approximately 78% of total
deposits as of June 30, 2016.
- Net interest margin for the three months ended June 30, 2016 was 3.04%, which was a 1 basis
point decrease compared to the three months ended March 31, 2016 and a 10 basis point decrease
compared to the three months ended June 30,
2015.
- For the three months ended June 30,
2016, the Company repurchased 10.7 million shares of its
outstanding common stock for approximately $123.6 million. As of June
30, 2016, the Company has approximately 30 million
shares remaining under its current repurchase plan.
- On May 3, 2016, the Company
announced the signing of a definitive merger agreement with The
Bank of Princeton, which operates
13 branches primarily in the greater Princeton, NJ area and in Philadelphia, PA. As of March 31, 2016, The Bank of Princeton had assets of $1.0 billion, loans of $842 million and deposits of $820 million. Consideration will be paid to The
Bank of Princeton stockholders in
a combination of stock and cash valued at the time of announcement
of approximately $154 million.
Financial Performance Overview - Second Quarter 2016
For the second quarter of 2016, net income totaled $44.4 million, an increase of $729,000 as compared to the first quarter of 2016
and a decrease of $2.0 million as
compared to the second quarter of 2015. The changes in net
income on both a sequential and year over year quarter basis are
the result of the following:
Net interest income increased by $2.7
million, or 1.8% as compared to the first quarter of 2016
due to:
- An increase in interest and dividend income of $2.9 million, or 1.5% to $195.0 million as compared to the first quarter
of 2016 primarily attributed to commercial loan growth, offset by a
decrease of 2 basis points on the weighted average loan yield to
4.10%.
- Prepayment penalties, which are included in interest income,
totaled $5.9 million for the three
months ended June 30, 2016 compared
to $4.7 million for the three months
ended March 31, 2016.
- An increase in total interest expense of $111,000 was primarily attributed to an increase
in interest expense on borrowed funds of $248,000 to $17.1
million, or 1%, partially offset by a decrease of 1 basis
point to 0.66% on the weighted average cost of interest-bearing
deposits for the three months ended June 30,
2016.
The net interest margin decreased 1 basis point to 3.04% for the
three months ended June 30, 2016 from 3.05% for the three
months ended March 31, 2016.
On a year over year basis, net interest income increased by
$8.8 million, or 5.9% in the second
quarter of 2016, as compared to the second quarter of 2015 due
to:
- An increase in interest and dividend income of $13.4 million, or 7.4% to $195.0 million as a result of a $1.53 billion increase in the average balance of
net loans, partially offset by the weighted average yield on net
loans decreasing 13 basis points to 4.10%.
- Prepayment penalties, which are included in interest income,
totaled $5.9 million for the three
months ended June 30, 2016 and
$5.6 million for the three months
ended June 30, 2015.
- An increase in total interest expense of $4.7 million was primarily attributed to an
increase in the average balance of total interest-bearing deposits
of $1.21 billion, or 10.8% to
$12.40 billion for the three months
ended June 30, 2016. In addition, the
weighted average cost of interest-bearing deposits increased 7
basis points to 0.66% for the three months ended June 30, 2016.
The net interest margin decreased 10 basis points year over year
to 3.04% for the three months ended June 30, 2016 from 3.14%
for the three months ended June 30, 2015.
Total non-interest income was $11.5
million for the three months ended June 30, 2016, an
increase of $2.8 million, or 31.7% as
compared to the first quarter of 2016. Gain on loans
increased $1.2 million primarily as a
result of loan sales through our mortgage subsidiary as well as the
Bank. Other income increased $708,000 attributed to non-depository investment
products and gain on securities transactions increased $252,000 primarily due to the sale of
$37.4 million of securities resulting
in a gain of $1.6 million.
During the first quarter of 2016, gain on securities transactions
totaled $1.4 million.
Compared to the second quarter of 2015, total non-interest
income decreased $116,000, or 1.0%
year over year. Gain on loans decreased $1.4 million for the three months ended
June 30, 2016 primarily as a result of lower loan sales
through our mortgage subsidiary as well as the Bank. This
decrease was offset by a $1.6 million
gain on securities transactions for the three months ended
June 30, 2016 primarily due to the sale of $37.4 million of securities.
Total non-interest expenses was $91.0
million for the three months ended June 30, 2016, an
increase of $3.9 million, or 4.4% as
compared to the first quarter of 2016. Compensation and
fringe benefits increased $1.8
million caused by higher staffing levels to support our
continued growth and infrastructure. Other increases were
related to professional fees and advertising and promotional
expense of $794,000 and $757,000, respectively.
Compared to the second quarter of 2015, total non-interest
expenses increased $11.2 million, or
14.0% year over year. Compensation and fringe benefits
increased $8.3 million for the three
months ended June 30, 2016 primarily due to equity incentive
expense of $5.4 million for the three
months ended June 30, 2016, resulting from the restricted
stock and stock option grants on June 23,
2015 to certain employees, officers and directors of the
Company, pursuant to the Investors Bancorp, Inc. 2015 Equity
Incentive Plan; normal merit increases; and additions to our staff
to support continued growth and infrastructure. Office
occupancy and equipment expense increased $1.7 million for the three months ended
June 30, 2016 primarily due to new branch openings.
Income tax expense was $28.4
million for the three months ended June 30, 2016 and
$27.5 million for the three months
ended March 31, 2016, representing an effective tax rate of
39.0% and 38.7%, respectively. Income tax expense was
$26.9 million for the three months
ended June 30, 2015, representing an effective tax rate of
36.8% which includes a tax benefit realized from revaluing the
Company's deferred tax asset related to changes in New York City tax law. Absent this
benefit, the tax rate for the three months ended June 30, 2015 would have been 38.3%.
Financial Performance Overview- Six Months of 2016
Net income decreased by $328,000,
year over year to $88.0 million for
the six months ended June 30, 2016. The changes in net
income for the six months ended year over year are the result of
the following:
- Total interest and dividend income increased by $30.4 million, or 8.5% to $387.1 million for the six months ended
June 30, 2016 as compared to the six
months of 2015 primarily attributed to growth in the commercial
loan portfolio. This increase was offset by a decrease of 12 basis
points to the weighted average yield on net loans to 4.11%.
- Prepayment penalties, which are included in interest income,
totaled $10.6 million for the six
months ended June 30, 2016 compared
to $10.2 million for the six months
ended June 30, 2015.
- Total interest expense increased by $11.5 million or 18.1% to $75.2 million for the six months ended
June 30, 2016 as compared to the six
months of 2015. The average balance of total interest-bearing
deposits increased $1.26 billion, or
11.3% to $12.37 billion for the six
months ended June 30, 2016. In
addition, the weighted average cost of interest-bearing deposits
increased 9 basis points to 0.67% for the six months ended
June 30, 2016.
- Net interest margin decreased 11 basis points as compared to
the six months of 2015 to 3.05% for the six months ended
June 30, 2016.
Total non-interest income was $20.2
million for the six months ended June 30, 2016, an
increase of $59,000, or 0.3% as
compared to the six months of 2015. Gain on securities
transactions increased $2.9 million
for the six months ended June 30, 2016 primarily due to the
sale of securities totaling $69.1
million, resulting in a gain of $3.0
million. This increase was offset by a decrease in
gain on loans of $2.2 million for the
six months ended June 30, 2016 primarily as a result of lower
loan sales through our mortgage subsidiary as well as the
Bank. Other income decreased $729,000 for the six months ended June 30,
2016 attributed to non-depository investment
products.
Total non-interest expense was $178.2
million for the six months ended June 30, 2016, an
increase of $21.4 million, or 13.7%
as compared to the six months of 2015. Compensation and
fringe benefits increased $16.7
million for the six months ended June 30, 2016
primarily due to equity incentive expense of $9.7 million for the six months ended
June 30, 2016 resulting from the restricted stock and stock
option grants on June 23, 2015 to
certain employees, officers and directors of the Company, pursuant
to the Investors Bancorp, Inc. 2015 Equity Incentive Plan; normal
merit increases; and additions to our staff to support continued
growth. Office occupancy and equipment expense increased
$3.0 million for the six months ended
June 30, 2016 primarily due to new branch
openings. Professional fees and other operating
expenses increased $1.1 million and
$1.3 million, respectively for the
six months ended June 30, 2016.
Income tax expense was $55.9
million for the six months ended June 30, 2016 compared
to $52.1 million for the six months
ended June 30, 2015, representing an effective tax rate of
38.9% and 37.1%, respectively. The tax rate for the six
months ended June 30, 2015 includes a tax benefit realized
from revaluing the Company's deferred tax asset related to changes
in New York City tax law.
Absent this benefit, the tax rate for the six months ended
June 30, 2015 would have been
37.9%.
Asset Quality
Our provision for loan losses was $5.0
million for the three months ended June 30, 2016 and
first quarter of 2016. For the three months ended
June 30, 2015 our provision for loan loss was $7.0 million. For the three months ended
June 30, 2016, net charge-offs were $1.3 million compared to $6.9 million for the first quarter of 2016 and
$1.2 million for the three months
ended June 30, 2015. For the six months ended
June 30, 2016 our provision for loan loss was $10.0 million compared with $16.0 million for the six months June 30,
2015. For the six months ended June 30, 2016, net
charge-offs were $8.2 million
compared to $2.3 million for
the the six months June 30, 2015.
Our provision for the three and six months ended June 30,
2016 is primarily a result of continued organic growth in the loan
portfolio, specifically the multi-family, commercial real estate
and commercial and industrial portfolios; the inherent credit risk
in our overall portfolio, particularly the credit risk associated
with commercial real estate lending and commercial and industrial
lending; and the improvement in the level of non-performing
loans.
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. 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.
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
# 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
|
131
|
|
|
$
|
24.9
|
|
|
151
|
|
|
$
|
28.6
|
|
|
168
|
|
|
$
|
28.6
|
|
|
135
|
|
|
$
|
23.5
|
|
|
105
|
|
|
$
|
21.5
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
—
|
|
|
—
|
|
|
6
|
|
|
18.0
|
|
|
5
|
|
|
13.7
|
|
|
9
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
Commercial real
estate
|
5
|
|
|
3.9
|
|
|
12
|
|
|
24.5
|
|
|
6
|
|
|
1.3
|
|
|
13
|
|
|
7.3
|
|
|
5
|
|
|
1.4
|
|
Commercial and
industrial
|
1
|
|
|
2.8
|
|
|
3
|
|
|
3.8
|
|
|
3
|
|
|
0.6
|
|
|
9
|
|
|
2.9
|
|
|
3
|
|
|
2.2
|
|
Total 30 to 59 days
past due
|
137
|
|
|
$
|
31.6
|
|
|
172
|
|
|
$
|
74.9
|
|
|
182
|
|
|
$
|
44.2
|
|
|
166
|
|
|
$
|
44.9
|
|
|
113
|
|
|
$
|
25.1
|
|
60 to 89 days past
due:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
51
|
|
|
7.8
|
|
|
66
|
|
|
16.3
|
|
|
86
|
|
|
14.2
|
|
|
57
|
|
|
14.6
|
|
|
60
|
|
|
12.2
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Commercial real
estate
|
2
|
|
|
0.7
|
|
|
1
|
|
|
0.3
|
|
|
3
|
|
|
0.4
|
|
|
1
|
|
|
0.3
|
|
|
3
|
|
|
0.7
|
|
Commercial and
industrial
|
1
|
|
|
0.8
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
Total 60 to 89 days
past due
|
54
|
|
|
9.3
|
|
|
68
|
|
|
16.6
|
|
|
91
|
|
|
14.6
|
|
|
61
|
|
|
15.8
|
|
|
63
|
|
|
12.9
|
|
Total accruing past
due loans
|
191
|
|
|
$
|
40.9
|
|
|
240
|
|
|
$
|
91.5
|
|
|
273
|
|
|
$
|
58.8
|
|
|
227
|
|
|
$
|
60.7
|
|
|
176
|
|
|
$
|
38.0
|
|
Non-accrual:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
471
|
|
|
86.5
|
|
|
488
|
|
|
85.9
|
|
|
500
|
|
|
91.1
|
|
|
506
|
|
|
99.8
|
|
|
422
|
|
|
86.6
|
|
Construction
|
1
|
|
|
0.2
|
|
|
3
|
|
|
0.5
|
|
|
4
|
|
|
0.8
|
|
|
5
|
|
|
1.0
|
|
|
3
|
|
|
0.9
|
|
Multi-family
|
2
|
|
|
1.2
|
|
|
3
|
|
|
2.9
|
|
|
4
|
|
|
3.5
|
|
|
4
|
|
|
3.0
|
|
|
6
|
|
|
4.1
|
|
Commercial real
estate
|
33
|
|
|
11.7
|
|
|
35
|
|
|
10.3
|
|
|
37
|
|
|
10.8
|
|
|
40
|
|
|
13.8
|
|
|
36
|
|
|
12.9
|
|
Commercial and
industrial
|
6
|
|
|
0.7
|
|
|
10
|
|
|
5.6
|
|
|
17
|
|
|
9.2
|
|
|
9
|
|
|
6.5
|
|
|
7
|
|
|
2.2
|
|
Total non-accrual
loans
|
513
|
|
|
$
|
100.3
|
|
|
539
|
|
|
$
|
105.2
|
|
|
562
|
|
|
$
|
115.4
|
|
|
564
|
|
|
$
|
124.1
|
|
|
474
|
|
|
$
|
106.7
|
|
Accruing troubled
debt
restructured loans
|
29
|
|
|
$
|
12.1
|
|
|
30
|
|
|
$
|
10.7
|
|
|
39
|
|
|
$
|
22.5
|
|
|
38
|
|
|
$
|
25.2
|
|
|
48
|
|
|
$
|
29.6
|
|
Non-accrual loans to
total loans
|
|
|
0.57
|
%
|
|
|
|
0.61
|
%
|
|
|
|
0.68
|
%
|
|
|
|
0.76
|
%
|
|
|
|
0.68
|
%
|
Allowance for loan
loss as a
percent of non-accrual loans
|
|
|
219.60
|
%
|
|
|
|
205.83
|
%
|
|
|
|
189.30
|
%
|
|
|
|
175.97
|
%
|
|
|
|
200.51
|
%
|
Allowance for loan
losses as a
percent of total loans
|
|
|
1.25
|
%
|
|
|
|
1.26
|
%
|
|
|
|
1.29
|
%
|
|
|
|
1.33
|
%
|
|
|
|
1.36
|
%
|
Total non-accrual loans decreased to $100.3 million at June 30, 2016 compared to
$105.2 million at March 31, 2016
and $106.7 million at June 30,
2015. We continue to diligently resolve our troubled loans,
however it takes a long period of time to resolve residential
credits in our lending area. At June 30, 2016, there
were $34.9 million of loans deemed as
troubled debt restructurings, of which $23.3
million were residential and consumer loans, $8.1 million were commercial real estate loans,
$1.0 million were multi-family loans
and $2.4 million were
commercial and industrial loans. Troubled debt restructured
loans in the amount of $12.1 million
were classified as accruing and $22.8
million were classified as non-accrual at June 30,
2016.
Balance Sheet Summary
Total assets increased by $829.6
million, or 4.0% to $21.72
billion at June 30, 2016 from December 31,
2015. Net loans increased $749.7
million or 4.5%, to $17.41
billion at June 30, 2016, and securities increased by
$59.9 million, or 1.9%, to
$3.21 billion at June 30, 2016
from December 31, 2015.
The detail of the loan portfolio (including PCI loans) is
below:
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(Dollars in
thousands)
|
Commercial
Loans:
|
|
|
|
|
|
Multi-family
loans
|
$
|
6,903,992
|
|
|
$
|
6,521,998
|
|
|
$
|
6,255,903
|
|
Commercial real
estate loans
|
4,035,401
|
|
|
3,898,739
|
|
|
3,829,099
|
|
Commercial and
industrial loans
|
1,100,453
|
|
|
1,052,194
|
|
|
1,044,386
|
|
Construction
loans
|
242,302
|
|
|
238,688
|
|
|
225,843
|
|
Total commercial
loans
|
12,282,148
|
|
|
11,711,619
|
|
|
11,355,231
|
|
Residential mortgage
loans
|
4,821,415
|
|
|
4,929,276
|
|
|
5,039,543
|
|
Consumer and
other
|
543,861
|
|
|
512,290
|
|
|
496,556
|
|
Total
Loans
|
17,647,424
|
|
|
17,153,185
|
|
|
16,891,330
|
|
Premiums on purchased
loans and deferred loan fees, net
|
(16,237)
|
|
|
(13,845)
|
|
|
(11,692)
|
|
Allowance for loan
losses
|
(220,316)
|
|
|
(216,613)
|
|
|
(218,505)
|
|
Net loans
|
$
|
17,410,871
|
|
|
$
|
16,922,727
|
|
|
$
|
16,661,133
|
|
During the six months ended June 30, 2016, we originated
$1.11 billion in multi-family
loans, $452.8 million in
commercial and industrial loans, $301.0
million in commercial real estate loans, $229.5 million in residential loans, $190.5 million in consumer and other loans and
$197.8 million in construction
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
$87.0 million in residential mortgage
loans for the six months ended June 30, 2016 that were for
sale to third party investors.
The allowance for loan losses increased by $1.8 million to $220.3
million at June 30, 2016 from $218.5 million at December 31, 2015.
The increase in our allowance for loan losses is due to the growth
of the loan portfolio, particularly the inherent credit risk
associated with commercial real estate lending as well as
commercial and industrial loans. 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
June 30, 2016, our allowance for loan loss as a percent of
total loans was 1.25%.
Securities, in the aggregate, increased by $59.9 million, or 1.9%, to $3.21 billion at June 30, 2016 from
$3.15 billion at December 31,
2015. This increase was a result of purchases partially
offset by paydowns and sales.
Deposits increased by $362.2
million, or 2.6%, from $14.06
billion at December 31, 2015 to $14.43 billion at June 30, 2016.
Checking accounts increased $639.5
million to $5.28 billion at
June 30, 2016 from $4.64 billion
at December 31, 2015. Core deposits represented
approximately 78% of our total deposit portfolio at June 30,
2016.
Borrowed funds increased by $631.1
million, or 19.3%, to $3.89
billion at June 30, 2016 from $3.26 billion at December 31, 2015 to
help fund the continued growth of the loan portfolio.
Stockholders' equity decreased by $179.4
million to $3.13 billion at
June 30, 2016 from $3.31 billion
at December 31, 2015. The decrease is primarily
attributed to the repurchase of 22.8 million shares of common stock
for $263.8 million as well as cash
dividends of $0.12 per share totaling
$39.0 million for the six
months ended June 30, 2016. These decreases are offset
by net income of $88.0 million for
the six months ended June 30, 2016.
About the Company
Investors Bancorp, Inc. is the holding company for Investors
Bank, which as of June 30, 2016 operates from its corporate
headquarters in Short Hills, New
Jersey and 146 branches located throughout New Jersey and New
York.
Earnings Conference Call July 28,
2016 at 11:00 a.m.
(ET)
The Company, as previously announced, will host an earnings
conference call on Thursday, July 28,
2016 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/10089401
A telephone replay will be available beginning on July 28, 2016 from 1:00
p.m. (ET) through 9:00 a.m.
(ET) on October 28,
2016. The replay number is (877) 344-7529 password
10089401. 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.
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Assets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
148,322
|
|
|
143,669
|
|
|
148,904
|
|
Securities
available-for-sale, at estimated fair value
|
1,381,041
|
|
|
1,311,532
|
|
|
1,304,697
|
|
Securities
held-to-maturity, net (estimated fair value of
$1,905,064, $1,954,346 and $1,888,686 at June 30, 2016,
March 31, 2016 and December 31, 2015, respectively)
|
1,827,761
|
|
|
1,887,000
|
|
|
1,844,223
|
|
Loans receivable,
net
|
17,410,871
|
|
|
16,922,727
|
|
|
16,661,133
|
|
Loans
held-for-sale
|
9,970
|
|
|
3,852
|
|
|
7,431
|
|
Federal Home Loan
Bank stock
|
208,824
|
|
|
190,240
|
|
|
178,437
|
|
Accrued interest
receivable
|
64,491
|
|
|
63,678
|
|
|
58,563
|
|
Other real estate
owned
|
3,774
|
|
|
4,431
|
|
|
6,283
|
|
Office properties and
equipment, net
|
176,006
|
|
|
173,609
|
|
|
172,519
|
|
Net deferred tax
asset
|
220,141
|
|
|
219,458
|
|
|
237,367
|
|
Bank owned life
insurance
|
160,181
|
|
|
159,184
|
|
|
159,152
|
|
Goodwill and
intangible assets
|
103,975
|
|
|
104,960
|
|
|
105,311
|
|
Other
assets
|
2,941
|
|
|
5,630
|
|
|
4,664
|
|
Total
assets
|
$
|
21,718,298
|
|
|
21,189,970
|
|
|
20,888,684
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Deposits
|
$
|
14,425,857
|
|
|
14,201,387
|
|
|
14,063,656
|
|
Borrowed
funds
|
3,894,171
|
|
|
3,527,630
|
|
|
3,263,090
|
|
Advance payments by
borrowers for taxes and insurance
|
118,177
|
|
|
126,180
|
|
|
108,721
|
|
Other
liabilities
|
147,841
|
|
|
119,046
|
|
|
141,570
|
|
Total
liabilities
|
18,586,046
|
|
|
17,974,243
|
|
|
17,577,037
|
|
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 June 30, 2016, March
31, 2016 and December 31, 2015; 313,473,634
323,385,503 and 334,894,181 outstanding at June 30,
2016, March 31, 2016 and December 31, 2015
|
3,591
|
|
|
3,591
|
|
|
3,591
|
|
Additional paid-in
capital
|
2,788,796
|
|
|
2,785,702
|
|
|
2,785,503
|
|
Retained
earnings
|
984,958
|
|
|
959,790
|
|
|
936,040
|
|
Treasury stock, at
cost; 45,597,218, 35,685,349 and
24,176,671 shares at June 30, 2016, March 31, 2016 and
December 31, 2015
|
(542,407)
|
|
|
(425,991)
|
|
|
(295,412)
|
|
Unallocated common
stock held by the employee stock
ownership plan
|
(88,752)
|
|
|
(89,501)
|
|
|
(90,250)
|
|
Accumulated other
comprehensive loss
|
(13,934)
|
|
|
(17,864)
|
|
|
(27,825)
|
|
Total stockholders'
equity
|
3,132,252
|
|
|
3,215,727
|
|
|
3,311,647
|
|
Total liabilities and
stockholders' equity
|
$
|
21,718,298
|
|
|
21,189,970
|
|
|
20,888,684
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Consolidated
Statements of Income
|
(unaudited)
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
Interest and dividend
income:
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and
loans held-for-sale
|
$
|
175,922
|
|
|
172,832
|
|
|
165,515
|
|
|
348,755
|
|
|
324,567
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
GSE
obligations
|
9
|
|
|
11
|
|
|
12
|
|
|
19
|
|
|
23
|
|
|
|
Mortgage-backed
securities
|
14,830
|
|
|
15,097
|
|
|
13,385
|
|
|
29,928
|
|
|
26,202
|
|
|
|
Equity
|
47
|
|
|
51
|
|
|
24
|
|
|
98
|
|
|
48
|
|
|
|
Municipal bonds and
other debt
|
2,057
|
|
|
1,952
|
|
|
1,024
|
|
|
4,009
|
|
|
2,616
|
|
|
Interest-bearing
deposits
|
74
|
|
|
104
|
|
|
27
|
|
|
177
|
|
|
56
|
|
|
Federal Home Loan
Bank stock
|
2,021
|
|
|
2,060
|
|
|
1,542
|
|
|
4,081
|
|
|
3,176
|
|
|
|
Total interest and
dividend income
|
194,960
|
|
|
192,107
|
|
|
181,529
|
|
|
387,067
|
|
|
356,688
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
20,588
|
|
|
20,725
|
|
|
16,429
|
|
|
41,313
|
|
|
32,448
|
|
|
Borrowed
funds
|
17,067
|
|
|
16,819
|
|
|
16,548
|
|
|
33,886
|
|
|
31,247
|
|
|
|
Total interest
expense
|
37,655
|
|
|
37,544
|
|
|
32,977
|
|
|
75,199
|
|
|
63,695
|
|
|
|
Net interest
income
|
157,305
|
|
|
154,563
|
|
|
148,552
|
|
|
311,868
|
|
|
292,993
|
|
Provision for loan
losses
|
5,000
|
|
|
5,000
|
|
|
7,000
|
|
|
10,000
|
|
|
16,000
|
|
|
|
Net interest income
after provision for
loan losses
|
152,305
|
|
|
149,563
|
|
|
141,552
|
|
|
301,868
|
|
|
276,993
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Fees and service
charges
|
4,637
|
|
|
4,180
|
|
|
4,578
|
|
|
8,817
|
|
|
8,602
|
|
|
Income on bank owned
life insurance
|
1,001
|
|
|
1,260
|
|
|
975
|
|
|
2,261
|
|
|
2,012
|
|
|
Gain on loans,
net
|
1,677
|
|
|
437
|
|
|
3,104
|
|
|
2,115
|
|
|
4,323
|
|
|
Gain on securities
transactions
|
1,640
|
|
|
1,388
|
|
|
42
|
|
|
3,028
|
|
|
84
|
|
|
Gain (loss) on sales
of other real estate
owned, net
|
131
|
|
|
(233)
|
|
|
238
|
|
|
(102)
|
|
|
310
|
|
|
Other
income
|
2,383
|
|
|
1,675
|
|
|
2,648
|
|
|
4,058
|
|
|
4,787
|
|
|
|
Total non-interest
income
|
11,469
|
|
|
8,707
|
|
|
11,585
|
|
|
20,177
|
|
|
20,118
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
fringe benefits
|
53,607
|
|
|
51,817
|
|
|
45,344
|
|
|
105,424
|
|
|
88,676
|
|
|
Advertising and
promotional expense
|
2,451
|
|
|
1,694
|
|
|
2,737
|
|
|
4,145
|
|
|
5,272
|
|
|
Office occupancy and
equipment expense
|
13,703
|
|
|
13,810
|
|
|
11,996
|
|
|
27,513
|
|
|
24,542
|
|
|
Federal insurance
premiums
|
2,800
|
|
|
2,400
|
|
|
2,400
|
|
|
5,200
|
|
|
4,600
|
|
|
Stationery, printing,
supplies and telephone
|
949
|
|
|
817
|
|
|
786
|
|
|
1,766
|
|
|
1,637
|
|
|
Professional
fees
|
4,807
|
|
|
4,013
|
|
|
4,442
|
|
|
8,820
|
|
|
7,713
|
|
|
Data processing
service fees
|
4,962
|
|
|
5,561
|
|
|
5,346
|
|
|
10,523
|
|
|
10,796
|
|
|
Other operating
expenses
|
7,730
|
|
|
7,034
|
|
|
6,785
|
|
|
14,764
|
|
|
13,508
|
|
|
|
Total non-interest
expenses
|
91,009
|
|
|
87,146
|
|
|
79,836
|
|
|
178,155
|
|
|
156,744
|
|
|
|
Income before income
tax expense
|
72,765
|
|
|
71,124
|
|
|
73,301
|
|
|
143,890
|
|
|
140,367
|
|
Income tax
expense
|
28,410
|
|
|
27,498
|
|
|
26,939
|
|
|
55,909
|
|
|
52,058
|
|
|
|
Net income
|
$
|
44,355
|
|
|
43,626
|
|
|
46,362
|
|
|
87,981
|
|
|
88,309
|
|
Basic and Diluted
earnings per share
|
$0.15
|
|
|
$0.14
|
|
|
$0.14
|
|
|
$0.29
|
|
|
$0.26
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
298,417,609
|
|
|
309,166,680
|
|
|
333,277,572
|
|
|
303,816,849
|
|
|
338,727,198
|
|
|
Diluted
|
|
|
301,509,608
|
|
|
312,154,256
|
|
|
336,452,548
|
|
|
307,032,615
|
|
|
341,869,777
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
For Three Months
Ended
|
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
|
|
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
|
$
|
136,718
|
|
74
|
|
0.22
|
%
|
|
$
|
157,877
|
|
104
|
|
0.26
|
%
|
|
$
|
197,031
|
|
27
|
|
0.05
|
%
|
|
Securities
available-for-sale
|
1,300,953
|
|
5,955
|
|
1.83
|
%
|
|
1,291,137
|
|
6,080
|
|
1.88
|
%
|
|
1,236,575
|
|
5,573
|
|
1.80
|
%
|
|
Securities
held-to-maturity
|
1,876,567
|
|
10,988
|
|
2.34
|
%
|
|
1,877,548
|
|
11,031
|
|
2.35
|
%
|
|
1,660,688
|
|
8,872
|
|
2.14
|
%
|
|
Net loans
|
17,173,249
|
|
175,922
|
|
4.10
|
%
|
|
16,769,132
|
|
172,832
|
|
4.12
|
%
|
|
15,642,670
|
|
165,515
|
|
4.23
|
%
|
|
Federal Home Loan
Bank stock
|
196,130
|
|
2,021
|
|
4.12
|
%
|
|
180,725
|
|
2,060
|
|
4.56
|
%
|
|
183,116
|
|
1,542
|
|
3.37
|
%
|
|
Total
interest-earning assets
|
20,683,617
|
|
194,960
|
|
3.77
|
%
|
|
20,276,419
|
|
192,107
|
|
3.79
|
%
|
|
18,920,080
|
|
181,529
|
|
3.84
|
%
|
Non-interest earning
assets
|
767,991
|
|
|
|
|
776,029
|
|
|
|
|
767,913
|
|
|
|
|
Total
assets
|
|
$
|
21,451,608
|
|
|
|
|
$
|
21,052,448
|
|
|
|
|
$
|
19,687,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,076,058
|
|
2,342
|
|
0.45
|
%
|
|
$
|
2,119,189
|
|
2,379
|
|
0.45
|
%
|
|
$
|
2,283,388
|
|
1,608
|
|
0.28
|
%
|
|
Interest-bearing
checking
|
3,146,805
|
|
3,612
|
|
0.46
|
%
|
|
3,000,051
|
|
3,135
|
|
0.42
|
%
|
|
2,716,780
|
|
2,421
|
|
0.36
|
%
|
|
Money market
accounts
|
3,805,237
|
|
5,216
|
|
0.55
|
%
|
|
3,826,756
|
|
5,449
|
|
0.57
|
%
|
|
3,506,441
|
|
5,793
|
|
0.66
|
%
|
|
Certificates of
deposit
|
3,376,342
|
|
9,418
|
|
1.12
|
%
|
|
3,393,174
|
|
9,762
|
|
1.15
|
%
|
|
2,685,177
|
|
6,607
|
|
0.98
|
%
|
|
Total interest
bearing deposits
|
12,404,442
|
|
20,588
|
|
0.66
|
%
|
|
12,339,170
|
|
20,725
|
|
0.67
|
%
|
|
11,191,786
|
|
16,429
|
|
0.59
|
%
|
|
Borrowed
funds
|
3,608,637
|
|
17,067
|
|
1.89
|
%
|
|
3,314,563
|
|
16,819
|
|
2.03
|
%
|
|
3,379,440
|
|
16,548
|
|
1.96
|
%
|
|
Total
interest-bearing liabilities
|
16,013,079
|
|
37,655
|
|
0.94
|
%
|
|
15,653,733
|
|
37,544
|
|
0.96
|
%
|
|
14,571,226
|
|
32,977
|
|
0.91
|
%
|
Non-interest bearing
liabilities
|
2,260,876
|
|
|
|
|
2,125,420
|
|
|
|
|
1,648,753
|
|
|
|
|
Total
liabilities
|
18,273,955
|
|
|
|
|
17,779,153
|
|
|
|
|
16,219,979
|
|
|
|
Stockholders'
equity
|
3,177,653
|
|
|
|
|
3,273,295
|
|
|
|
|
3,468,014
|
|
|
|
|
Total liabilities and
stockholders'
equity
|
$
|
21,451,608
|
|
|
|
|
$
|
21,052,448
|
|
|
|
|
$
|
19,687,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
157,305
|
|
|
|
|
$
|
154,563
|
|
|
|
|
$
|
148,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.83
|
%
|
|
|
|
2.83
|
%
|
|
|
|
2.93
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
|
4,670,538
|
|
|
|
|
$
|
4,622,686
|
|
|
|
|
$
|
4,348,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.04
|
%
|
|
|
|
3.05
|
%
|
|
|
|
3.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total
interest-bearing liabilities
|
1.29
|
|
X
|
|
|
1.30
|
|
X
|
|
|
1.30
|
|
X
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
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
|
$
|
147,297
|
|
177
|
|
0.24
|
%
|
|
$
|
192,693
|
|
56
|
|
0.06
|
%
|
|
Securities
available-for-sale
|
1,296,045
|
|
12,035
|
|
1.86
|
%
|
|
1,216,819
|
|
10,916
|
|
1.79
|
%
|
|
Securities
held-to-maturity
|
1,877,058
|
|
22,019
|
|
2.35
|
%
|
|
1,616,366
|
|
17,973
|
|
2.22
|
%
|
|
Net loans
|
16,971,190
|
|
348,755
|
|
4.11
|
%
|
|
15,348,650
|
|
324,567
|
|
4.23
|
%
|
|
Federal Home Loan
Bank stock
|
188,427
|
|
4,081
|
|
4.33
|
%
|
|
167,929
|
|
3,176
|
|
3.78
|
%
|
|
|
Total
interest-earning assets
|
20,480,017
|
|
387,067
|
|
3.78
|
%
|
|
18,542,457
|
|
356,688
|
|
3.85
|
%
|
Non-interest earning
assets
|
772,010
|
|
|
|
|
766,460
|
|
|
|
|
|
Total
assets
|
$
|
21,252,027
|
|
|
|
|
$
|
19,308,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,097,623
|
|
4,721
|
|
0.45
|
%
|
|
$
|
2,325,314
|
|
3,294
|
|
0.28
|
%
|
|
Interest-bearing
checking
|
3,073,428
|
|
6,747
|
|
0.44
|
%
|
|
2,725,337
|
|
4,855
|
|
0.36
|
%
|
|
Money market
accounts
|
3,815,996
|
|
10,665
|
|
0.56
|
%
|
|
3,470,721
|
|
11,936
|
|
0.69
|
%
|
|
Certificates of
deposit
|
3,384,758
|
|
19,180
|
|
1.13
|
%
|
|
2,591,285
|
|
12,363
|
|
0.95
|
%
|
|
Total interest
bearing deposits
|
12,371,805
|
|
41,313
|
|
0.67
|
%
|
|
11,112,657
|
|
32,448
|
|
0.58
|
%
|
|
Borrowed
funds
|
3,461,600
|
|
33,886
|
|
1.96
|
%
|
|
3,088,673
|
|
31,247
|
|
2.02
|
%
|
|
|
Total
interest-bearing liabilities
|
15,833,405
|
|
75,199
|
|
0.95
|
%
|
|
14,201,330
|
|
63,695
|
|
0.90
|
%
|
Non-interest bearing
liabilities
|
2,193,148
|
|
|
|
|
1,571,200
|
|
|
|
|
|
Total
liabilities
|
18,026,553
|
|
|
|
|
15,772,530
|
|
|
|
Stockholders'
equity
|
3,225,474
|
|
|
|
|
3,536,387
|
|
|
|
|
|
Total liabilities and
stockholders'
equity
|
$
|
21,252,027
|
|
|
|
|
$
|
19,308,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
311,868
|
|
|
|
|
$
|
292,993
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.83
|
%
|
|
|
|
2.95
|
%
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
|
4,646,612
|
|
|
|
|
$
|
4,341,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.05
|
%
|
|
|
|
3.16
|
%
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total
interest-bearing liabilities
|
1.29
|
|
X
|
|
|
1.31
|
|
X
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Selected Performance
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.83
|
%
|
|
0.83
|
%
|
|
0.94
|
%
|
|
0.83
|
%
|
|
0.91
|
%
|
Return on average
equity
|
5.58
|
%
|
|
5.33
|
%
|
|
5.35
|
%
|
|
5.46
|
%
|
|
4.99
|
%
|
Return on average
tangible equity
|
5.77
|
%
|
|
5.51
|
%
|
|
5.51
|
%
|
|
5.64
|
%
|
|
5.15
|
%
|
Interest rate
spread
|
2.83
|
%
|
|
2.83
|
%
|
|
2.93
|
%
|
|
2.83
|
%
|
|
2.95
|
%
|
Net interest
margin
|
3.04
|
%
|
|
3.05
|
%
|
|
3.14
|
%
|
|
3.05
|
%
|
|
3.16
|
%
|
Efficiency
ratio
|
53.92
|
%
|
|
53.38
|
%
|
|
49.85
|
%
|
|
53.65
|
%
|
|
50.06
|
%
|
Non-interest expense
to average total assets
|
1.70
|
%
|
|
1.66
|
%
|
|
1.62
|
%
|
|
1.68
|
%
|
|
1.62
|
%
|
Average
interest-earning assets to average
interest-bearing liabilities
|
1.29
|
|
|
1.30
|
|
|
1.30
|
|
|
1.29
|
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARIES
|
Selected Financial
Ratios and Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
2016
|
|
March
31,
2016
|
|
December
31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets
|
|
|
0.54
|
%
|
|
0.57
|
%
|
|
0.69
|
%
|
|
|
Non-performing loans
as a percent of total loans
|
|
|
0.64
|
%
|
|
0.68
|
%
|
|
0.82
|
%
|
|
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
219.60
|
%
|
|
205.83
|
%
|
|
189.30
|
%
|
|
|
Allowance for loan
losses as a percent of total loans
|
|
1.25
|
%
|
|
1.26
|
%
|
|
1.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio
(1)
|
|
|
12.33
|
%
|
|
12.37
|
%
|
|
12.41
|
%
|
|
|
Common equity tier 1
risk-based (1)
|
|
|
15.39
|
%
|
|
15.78
|
%
|
|
15.87
|
%
|
|
|
Tier 1 Risk-Based
Capital (1)
|
|
|
15.39
|
%
|
|
15.78
|
%
|
|
15.87
|
%
|
|
|
Total Risk-Based
Capital (1)
|
|
|
16.64
|
%
|
|
17.04
|
%
|
|
17.12
|
%
|
|
|
Equity to total
assets (period end)
|
|
|
14.42
|
%
|
|
15.18
|
%
|
|
15.85
|
%
|
|
|
Average equity to
average assets
|
|
|
15.18
|
%
|
|
15.55
|
%
|
|
17.41
|
%
|
|
|
Tangible capital (to
tangible assets) (2)
|
|
|
14.01
|
%
|
|
14.75
|
%
|
|
15.43
|
%
|
|
|
Book value per common
share (2)
|
|
|
$
|
10.43
|
|
|
$
|
10.37
|
|
|
$
|
10.30
|
|
|
|
Tangible book value
per common share (2)
|
|
|
$
|
10.08
|
|
|
$
|
10.03
|
|
|
$
|
9.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Number of full
service offices
|
|
|
146
|
|
|
143
|
|
|
140
|
|
|
|
Full time equivalent
employees
|
|
|
1,785
|
|
|
1,741
|
|
|
1,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
At the period
ended
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
Total stockholders'
equity
|
3,132,252
|
|
|
3,215,727
|
|
|
3,311,647
|
|
Goodwill and
intangible assets
|
103,975
|
|
|
104,960
|
|
|
105,311
|
|
Tangible
stockholders' equity
|
3,028,277
|
|
|
3,110,767
|
|
|
3,206,336
|
|
|
|
|
|
|
|
Book Value per
Share Computation
|
|
|
|
|
|
Common stock
issued
|
359,070,852
|
|
|
359,070,852
|
|
|
359,070,852
|
|
Treasury
shares
|
(45,597,218)
|
|
|
(35,685,349)
|
|
|
(24,176,671)
|
|
Shares
Outstanding
|
313,473,634
|
|
|
323,385,503
|
|
|
334,894,181
|
|
Unallocated ESOP
shares
|
(13,026,696)
|
|
|
(13,145,121)
|
|
|
(13,263,545)
|
|
Book value
shares
|
300,446,938
|
|
|
310,240,382
|
|
|
321,630,636
|
|
|
|
|
|
|
|
Book Value Per
Share
|
$
|
10.43
|
|
|
$
|
10.37
|
|
|
$
|
10.30
|
|
|
|
|
|
|
|
Tangible Book
Value per Share
|
$
|
10.08
|
|
|
$
|
10.03
|
|
|
$
|
9.97
|
|
|
|
|
|
|
|
Investors Bancorp,
Inc.
|
Non GAAP
Reconciliation
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
Adjusted Tax
Rate
|
|
|
|
|
|
|
|
For the three
months ended June 30
|
|
For the six months
ended June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
72,765
|
|
|
$
|
73,301
|
|
|
$
|
143,890
|
|
|
$
|
140,367
|
|
Income tax
expense
|
28,410
|
|
|
26,939
|
|
|
55,909
|
|
|
52,058
|
|
Net Income
|
44,355
|
|
|
46,362
|
|
|
87,981
|
|
|
88,309
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
39.04
|
%
|
|
36.75
|
%
|
|
38.86
|
%
|
|
37.09
|
%
|
|
|
|
|
|
|
|
|
Tax adjustment
(1)
|
—
|
|
|
1,166
|
|
|
—
|
|
|
1,166
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
44,355
|
|
|
45,196
|
|
|
87,981
|
|
|
87,143
|
|
Adjusted tax
rate
|
39.04
|
%
|
|
38.34
|
%
|
|
38.86
|
%
|
|
37.92
|
%
|
|
(1) For the 2015
periods, represents a tax benefit realized from revaluing the
Company's deferred tax asset related to changes in New York City
tax law.
|
Contact: Marianne Wade
(973) 924-5100
investorrelations@myinvestorsbank.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/investors-bancorp-inc-announces-second-quarter-financial-results-and-cash-dividend-300305148.html
SOURCE Investors Bancorp, Inc.