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Investors Bancorp, Inc. Announces First Quarter Financial Results and Cash Dividend

SHORT HILLS, N.J., April 27, 2017 /PRNewswire/ -- Investors Bancorp, Inc. (ISBC) ("Company"), the holding company for Investors Bank ("Bank"), reported net income of $46.0 million, or  $0.16 per diluted share, for the three months ended March 31, 2017, compared to $52.5 million, or $0.18  per diluted share, for the three months ended December 31, 2016, and $44.7 million, or $0.14 per diluted share, for the three months ended March 31, 2016.

Kevin Cummings, President and CEO commented, "This was a solid quarter for the Bank as year over year earnings per share grew 14%. We continue to invest in our risk management infrastructure as well as BSA remediation initiatives."

Mr. Cummings continued, "Our non-accrual loan metrics continued to improve as compared with the prior
quarters."

The Company also announced today that its Board of Directors declared a cash dividend of $0.08 per share to be paid on May 25, 2017 for stockholders of record as of May 10, 2017.

Performance Highlights

  • Total assets increased $714.0 million, or 3.1%, to $23.89 billion at March 31, 2017 from $23.17 billion at December 31, 2016.
  • Net loans increased $691.4 million, or 3.7%, to $19.26 billion at March 31, 2017 from $18.57 billion at December 31, 2016. During the three months ended March 31, 2017 we originated $1.16 billion in new loans.
  • Core deposits (savings, checking and money market) increased $218.8 million from $12.33 billion at December 31, 2016 to $12.55 billion at March 31, 2017 and represent approximately 82% of total deposits as of March 31, 2017 compared to 76% at March 31, 2016.
  • Net interest income for the three months ended March 31, 2017 was $167.1 million, an 8.1% increase compared to the three months ended March 31, 2016.
  • Non-accrual loans to total loans declined to 0.45% at March 31, 2017 compared to 0.61% at March 31, 2016. Our provision for loan losses was $4.0 million for the three months ended March 31, 2017, compared to net charge-offs of $1.5 million.
  • Earnings per share increased 14% from $0.14 per share for the three months ended March 31, 2016 to $0.16 per share for the three months ended March 31, 2017.

Financial Performance Overview

For the first quarter of 2017, net income totaled $46.0 million, a decrease of $6.4 million as compared to the fourth quarter of 2016 and an increase of $1.4 million as compared to the first quarter of 2016.  The changes in net income on both a sequential and year over year quarter basis are the result of the following:

Net interest income decreased by $1.6 million, or 0.9%, as compared to the fourth quarter of 2016 due to:

  • An increase in total interest expense of $3.6 million primarily attributable to rising deposit and borrowing costs, as well as an increase in the weighted average balance of total interest-bearing liabilities of $678.6 million, or 3.9%, to $17.89 billion. The weighted average cost of interest-bearing liabilities for the three months ended March 31, 2017 increased 5 basis points to 0.96%.
  • An increase in interest and dividend income of $2.0 million, or 1.0%, to $210.1 million as compared to the fourth quarter of 2016.
    • Interest income on loans decreased by $2.0 million, or 1.0%, to $186.0 million which is attributed to a 17 basis point reduction in the weighted average loan yield to 3.95%, primarily driven by lower prepayment penalties and lower average yields on new loan origination volume. The decrease is partially offset by a $567.2 million increase in the average balance of net loans to $18.83 billion primarily attributed to growth in the commercial loan portfolio.
    • Prepayment penalties, which are included in interest income, totaled $3.2 million for the three months ended March 31, 2017, as compared to $7.4 million for the three months ended December 31, 2016.
    • Interest income on interest-earning assets, excluding loans, increased by $4.0 million, or 19.7%, to $24.1 million for the three months ended March 31, 2017. The increase is attributed to the weighted average yield on interest-earning assets, excluding loans, which increased 36 basis points to 2.52% for the three months ended March 31, 2017.

The net interest margin decreased 12 basis points to 2.95% for the three months ended March 31, 2017 from 3.07% for the three months ended December 31, 2016 with approximately 8 basis points of the decrease being driven by lower prepayment penalties.

On a year over year basis, net interest income increased by $12.6 million, or 8.1%, in the first quarter of 2017, as compared to the first quarter of 2016 due to:

  • An increase in interest and dividend income of $18.0 million, or 9.4%, to $210.1 million as a result of a $2.06 billion increase in the average balance of net loans from continued loan origination growth, partially offset by the weighted average loan yield decreasing 17 basis points to 3.95%, with new originations yields and prepayment penalty declines.
  • Prepayment penalties, which are included in interest income, totaled $3.2 million for the three months ended March 31, 2017, as compared to $4.7 million for the three months ended March 31, 2016.
  • An increase in total interest expense of $5.4 million was primarily attributed to an increase in the average balance of total borrowed funds of $1.31 billion, or 39.4%, to $4.62 billion for the three months ended March 31, 2017 and an increase in the average balance of interest-bearing deposits of $935.4 million, or 7.6%, to $13.27 billion. The weighted average cost of interest-bearing liabilities remained flat at 0.96% for the three months ended March 31, 2017.

The net interest margin decreased 10 basis points year over year to 2.95% for the three months ended March 31, 2017 from 3.05% for the three months ended March 31, 2016 with approximately 3 basis points of the decrease being driven by lower prepayment penalties.

Total non-interest income increased by $1.2 million to $9.7 million for the three months ended March 31, 2017 compared to the three months ended December 31, 2016, primarily due to a $1.2 million gain on security transactions as a result of the sale of available for sale securities totaling $46.1 million for the three months ended March 31, 2017.  Compared to the first quarter of 2016, total non-interest income increased $1.0 million.

Total non-interest expenses were $99.6 million for the three months ended March 31, 2017, an increase of $10.5 million, or 11.9%, as compared to the fourth quarter of 2016.  Compensation and fringe benefits increased $9.1 million due to additions to our staff to support continued growth and infrastructure, especially in our risk management area, as well as normal merit increases.  These increases were coupled with the decrease of our incentive compensation and freezing of defined benefit retirement plans during the fourth quarter of 2016 which reduced total non-interest expenses for the three months ended December 31, 2016 by approximately $5.0 million. For the three months ended March 31, 2017 professional fees increased $1.8 million, largely attributable to continuing risk management and compliance efforts, including the enhancement of the Company's bank secrecy act and anti-money laundering compliance program ("BSA").  Excluding the impact of BSA related professional fees, total non-interest expenses totaled $95.1 million for the three months ended March 31, 2017.

Compared to the first quarter of 2016, total non-interest expenses increased $12.4 million, or 14.2%, year over year due to the contributing factors:

  • Compensation and fringe benefits increased $5.5 million as a result of additions to our staff to support continued growth and continued build out of our risk management and operating infrastructure, as well as normal merit increases.
  • Professional fees increased $3.4 million as we continue to enhance risk management and operational infrastructure.
  • Federal insurance premiums and office occupancy and equipment expense increased $1.3 million and $1.0 million, respectively, for the three months ended March 31, 2017.

Income tax expense was $27.2 million for the three months ended March 31, 2017, $31.0 million for the three months ended December 31, 2016 and $26.5 million for the three months ended March 31, 2016.

Asset Quality

Our provision for loan losses was $4.0 million for the three months ended March 31, 2017, compared to $4.8 million for the three months ended December 31, 2016 and $5.0 million for the three months ended March 31, 2016.  For the three months ended March 31, 2017, net charge-offs were $1.5 million compared to net recoveries of $73,000 for the three months ended December 31, 2016 and net charge-offs of $6.9 million for the three months ended March 31, 2016.

Our provision for the three months ended March 31, 2017 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; offset by the improvement in the level of non-accrual loans and charge-offs.

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 decreased to $87.1 million, or 0.45% of total loans, at March 31, 2017 compared to $94.3 million, or 0.50% of total loans, at December 31, 2016.  Classified loans as a percent of total loans increased to 1.58% at March 31, 2017 from 1.00% at December 31, 2016. 

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 March 31, 2017, there were $33.0 million of loans deemed as troubled debt restructurings, of which $27.4 million were residential and consumer loans, $3.7 million were commercial real estate loans, $1.7 million were commercial and industrial loans and $246,000 were multi-family loans.  Troubled debt restructured loans of $12.2 million were classified as accruing and $20.8 million were classified as non-accrual at March 31, 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.


March 31, 2017


December 31, 2016


September 30, 2016


June 30, 2016


March 31, 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

103



$

29.2



116



$

27.1



110



$

18.9



131



$

24.9



151



$

28.6


Construction




















Multi-family

6



14.7



2



5.3



3



4.1







6



18.0


Commercial real estate

13



38.8



3



6.4



11



24.0



5



3.9



12



24.5


Commercial and industrial

6



1.1



4



0.8



6



1.4



1



2.8



3



3.8


Total 30 to 59 days past due

128



83.8



125



39.6



130



48.4



137



31.6



172



74.9


60 to 89 days past due:




















Residential and consumer

51



8.3



57



10.8



62



11.1



51



7.8



66



16.3


Construction




















Multi-family





1



1.1



1



1.1










Commercial real estate

7



8.4



8



32.0



3



16.4



2



0.7



1



0.3


Commercial and industrial

1



0.6



4



0.9



3



0.4



1



0.8



1




Total 60 to 89 days past due

59



17.3



70



44.8



69



29.0



54



9.3



68



16.6


Total accruing past due loans

187



$

101.1



195



$

84.4



199



$

77.4



191



$

40.9



240



$

91.5


Non-accrual:




















Residential and consumer

470



$

76.2



478



$

79.9



481



$

86.1



471



$

86.5



488



$

85.9


Construction













1



0.2



3



0.5


Multi-family

2



0.5



2



0.5



1



0.2



2



1.2



3



2.9


Commercial real estate

24



8.2



24



9.2



29



8.9



33



11.7



35



10.3


Commercial and industrial

4



2.2



8



4.7



6



2.3



6



0.7



10



5.6


Total non-accrual loans

500



$

87.1



512



$

94.3



517



$

97.5



513



$

100.3



539



$

105.2


Accruing troubled debt
restructured loans

47



$

12.2



42



$

9.4



31



$

8.8



29



$

12.1



30



$

10.7


Non-accrual loans to total loans



0.45

%




0.50

%




0.53

%




0.57

%




0.61

%

Allowance for loan loss as a
percent of non-accrual loans



265.16

%




242.24

%




229.31

%




219.60

%




205.83

%

Allowance for loan losses as a
percent of total loans



1.18

%




1.21

%




1.22

%




1.25

%




1.26

%


 

Balance Sheet Summary

Total assets increased by $714.0 million, or 3.1%, to $23.89 billion at March 31, 2017 from December 31, 2016.  Net loans increased $691.4 million, or 3.7%, to $19.26 billion at March 31, 2017, and securities increased by $55.7 million, or 1.6%, to $3.47 billion at March 31, 2017 from December 31, 2016.

The detail of the loan portfolio (including PCI loans) is below:           


March 31, 2017


December 31, 2016


(Dollars in thousands)

Commercial Loans:




Multi-family loans

$

7,795,974



7,459,131


Commercial real estate loans

4,637,427



4,452,300


Commercial and industrial loans

1,374,599



1,275,283


Construction loans

335,341



314,843


Total commercial loans

14,143,341



13,501,557


Residential mortgage loans

4,750,529



4,711,880


Consumer and other

611,558



597,265


Total Loans

19,505,428



18,810,702


Premiums on purchased loans and deferred loan fees, net

(13,245)



(12,474)


Allowance for loan losses

(230,912)



(228,373)


Net loans

$

19,261,271



18,569,855


 

During the three months ended March 31, 2017, we originated $498.4 million in multi-family loans, $234.7 million in commercial real estate loans, $176.0 million in commercial and industrial loans, $121.6 million in residential loans, $95.7 million in construction loans and $32.5 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 $41.2 million during the three months ended March 31, 2017.

The allowance for loan losses increased by $2.5 million to $230.9 million at March 31, 2017 from $228.4 million at December 31, 2016.  The increase in our allowance for loan losses is due to the growth of the loan portfolio and the credit risk in our overall portfolio, particularly the inherent credit risk associated with commercial real estate lending as well as commercial and industrial loans, offset by the improvement in 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 March 31, 2017, our allowance for loan loss as a percent of total loans was 1.18%.

Securities, in the aggregate, increased by $55.7 million, or 1.6%, to $3.47 billion at March 31, 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 $95.2 million, or 0.6%, from $15.28 billion at December 31, 2016 to $15.38 billion at March 31, 2017.  Checking accounts increased $100.0 million to $6.19 billion at March 31, 2017 from $6.09 billion at December 31, 2016.  Core deposits (savings, checking and money market) represented approximately 82% of our total deposit portfolio at March 31, 2017.

Borrowed funds increased by $547.5 million, or 12.0%, to $5.09 billion at March 31, 2017 from $4.55 billion at December 31, 2016 to help fund the continued growth of the loan portfolio.

Stockholders' equity increased by $35.2 million to $3.16 billion at March 31, 2017 from $3.12 billion at December 31, 2016.  The increase is primarily attributed to net income of $46.0 million and $10.2 million of costs related to share-based plans for the three months ended March 31, 2017.  These increases are partially offset by cash dividends of $0.08 per share totaling $24.8 million during the three months ended March 31, 2017.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as of March 31, 2017 operates from its corporate headquarters in Short Hills, New Jersey and 152 branches located throughout New Jersey and New York.

Earnings Conference Call April 28, 2017 at 11:00 a.m. (ET)

The Company, as previously announced, will host an earnings conference call on Friday, April 28, 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/10104229

A telephone replay will be available beginning on April 28, 2017 from 1:00 p.m. (ET) through 9:00 a.m. (ET) on July 28, 2017.  The replay number is (877) 344-7529 password 10104229.  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






March 31, 2017


December 31, 2016


(unaudited)



Assets

(Dollars in thousands)





Cash and cash equivalents

$

165,914



164,178


Securities available-for-sale, at estimated fair value

1,767,260



1,660,433


Securities held-to-maturity, net (estimated fair value of $1,736,210 and
$1,782,801 at March 31 2017 and December 31, 2016, respectively)

1,704,406



1,755,556


Loans receivable, net

19,261,271



18,569,855


Loans held-for-sale

4,908



38,298


Federal Home Loan Bank stock

251,805



237,878


Accrued interest receivable

68,922



65,969


Other real estate owned

4,801



4,492


Office properties and equipment, net

179,196



177,417


Net deferred tax asset

216,183



222,277


Bank owned life insurance

153,063



161,940


Goodwill and intangible assets

101,475



101,839


Other assets

9,469



14,543


Total assets

$

23,888,673



23,174,675


Liabilities and Stockholders' Equity




Liabilities:




Deposits

$

15,376,023



15,280,833


Borrowed funds

5,093,790



4,546,251


Advance payments by borrowers for taxes and insurance

127,401



105,851


Other liabilities

132,967



118,495


Total liabilities

20,730,181



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 March 31, 2017 and December 31, 2016; 310,364,901 and
309,449,388 outstanding at March 31, 2017 and December 31, 2016,
respectively

3,591



3,591


Additional paid-in capital

2,763,217



2,765,732


Retained earnings

1,075,909



1,053,750


Treasury stock, at cost; 48,705,951 and 49,621,464 shares at March 31, 2017
and December 31, 2016, respectively

(576,973)



(587,974)


Unallocated common stock held by the employee stock ownership plan

(86,505)



(87,254)


Accumulated other comprehensive loss

(20,747)



(24,600)


Total stockholders' equity

3,158,492



3,123,245


Total liabilities and stockholders' equity

$

23,888,673



23,174,675


 

 

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income







For the Three Months Ended







March 31, 2017


December 31, 2016


March 31, 2016







(unaudited)


(unaudited)


(unaudited)







(Dollars in thousands, except per share data)

Interest and dividend income:







Loans receivable and loans held-for-sale

$

185,961



187,912



172,832



Securities:








GSE obligations

8



8



11




Mortgage-backed securities

16,709



15,631



15,097




Equity

48



51



51




Municipal bonds and other debt

4,068



1,665



1,952



Interest-bearing deposits

107



88



104



Federal Home Loan Bank stock

3,193



2,724



2,060




Total interest and dividend income

210,094



208,079



192,107


Interest expense:







Deposits


22,184



20,418



20,725



Borrowed funds

20,791



18,951



16,819




Total interest expense

42,975



39,369



37,544




Net interest income

167,119



168,710



154,563


Provision for loan losses

4,000



4,750



5,000




Net interest income after provision for loan losses

163,119



163,960



149,563


Non-interest income:







Fees and service charges

4,928



4,223



4,180



Income on bank owned life insurance

725



1,156



1,260



Gain on loans, net

992



1,271



437



Gain on securities transactions

1,227





1,388



Gain (loss) on sales of other real estate owned, net

174



163



(233)



Other income

1,657



1,691



1,675




Total non-interest income

9,703



8,504



8,707


Non-interest expense:







Compensation and fringe benefits

57,274



48,223



51,817



Advertising and promotional expense

2,085



3,004



1,694



Office occupancy and equipment expense

14,847



14,608



13,810



Federal insurance premiums

3,710



3,383



2,400



General and administrative

734



724



817



Professional fees

7,421



5,611



4,013



Data processing and communication

5,860



5,222



5,561



Other operating expenses

7,627



8,235



7,034




Total non-interest expenses

99,558



89,010



87,146




Income before income tax expense

73,264



83,454



71,124


Income tax expense

27,244



30,989



26,455




Net income

$

46,020



52,465



44,669


Basic earnings per share

$

0.16



$

0.18



$

0.14


Diluted earnings per share

$

0.16



$

0.18



$

0.14









Basic weighted average shares outstanding

291,185,408



290,751,171



309,166,680



Diluted weighted average shares outstanding

293,407,422



292,623,922



312,951,988


 

 

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Average Balance Sheet and Yield/Rate Information




For the Three Months Ended




March 31, 2017


December 31, 2016


March 31, 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

$

144,142


107


0.30

%


$

154,678


88


0.23

%


$

157,877


104


0.26

%


Securities available-for-sale

1,721,518


8,296


1.93

%


1,574,840


7,165


1.82

%


1,291,137


6,080


1.88

%


Securities held-to-maturity

1,724,751


12,537


2.91

%


1,778,239


10,190


2.29

%


1,877,548


11,031


2.35

%


Net loans

18,825,615


185,961


3.95

%


18,258,406


187,912


4.12

%


16,769,132


172,832


4.12

%


Federal Home Loan Bank stock

241,156


3,193


5.30

%


224,917


2,724


4.84

%


180,725


2,060


4.56

%


Total interest-earning assets

22,657,182


210,094


3.71

%


21,991,080


208,079


3.78

%


20,276,419


192,107


3.79

%

Non-interest earning assets

755,164





794,131





776,029





Total assets


$

23,412,346





$

22,785,211





$

21,052,448


















Interest-bearing liabilities:













Savings

$

2,106,087


1,834


0.35

%


$

2,087,267


1,620


0.31

%


$

2,119,189


1,594


0.30

%


Interest-bearing checking

4,104,085


6,483


0.63

%


3,901,601


5,070


0.52

%


3,000,051


3,135


0.42

%


Money market accounts

4,179,321


7,190


0.69

%


4,094,678


6,737


0.66

%


3,826,756


6,234


0.65

%


Certificates of deposit

2,885,079


6,677


0.93

%


2,873,374


6,991


0.97

%


3,393,174


9,762


1.15

%


 Total interest bearing deposits

13,274,572


22,184


0.67

%


12,956,920


20,418


0.63

%


12,339,170


20,725


0.67

%


Borrowed funds

4,619,618


20,791


1.80

%


4,258,697


18,951


1.78

%


3,314,563


16,819


2.03

%


Total interest-bearing liabilities

17,894,190


42,975


0.96

%


17,215,617


39,369


0.91

%


15,653,733


37,544


0.96

%

Non-interest bearing liabilities

2,365,481





2,450,879





2,125,420





Total liabilities

20,259,671





19,666,496





17,779,153




Stockholders' equity

3,152,675





3,118,715





3,273,295





Total liabilities and stockholders'
equity

$

23,412,346





$

22,785,211





$

21,052,448


















Net interest income


$

167,119





$

168,710





$

154,563

















Net interest rate spread



2.75

%




2.87

%




2.83

%















Net interest earning assets

$

4,762,992





$

4,775,463





$

4,622,686


















Net interest margin



2.95

%




3.07

%




3.05

%















Ratio of interest-earning assets to total
interest-bearing liabilities

1.27


X



1.28


X



1.30


X































 

 

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Selected Performance Ratios








For the Three Months Ended


March 31,
2017


December 31,
2016


March 31,
2016







Return on average assets (1)

0.79

%


0.92

%


0.85

%

Return on average equity (1)

5.84

%


6.73

%


5.46

%

Return on average tangible equity (1)

6.03

%


6.96

%


5.64

%

Interest rate spread

2.75

%


2.87

%


2.83

%

Net interest margin

2.95

%


3.07

%


3.05

%

Efficiency ratio

56.30

%


50.23

%


53.38

%

Non-interest expense to average total assets

1.70

%


1.56

%


1.66

%

Average interest-earning assets to average interest-bearing liabilities

1.27



1.28



1.30








(1)  March 31, 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








March 31,
2017


December 31,
2016









Asset Quality Ratios:






Non-performing assets as a percent of total assets

0.44

%


0.47

%



Non-performing loans as a percent of total loans

0.51

%


0.55

%



Allowance for loan losses as a percent of non-accrual loans

265.16

%


242.24

%



Allowance for loan losses as a percent of total loans

1.18

%


1.21

%









Capital Ratios:






Tier 1 Leverage Ratio (1)

11.94

%


12.03

%



Common equity tier 1 risk-based (1)

14.54

%


14.75

%



Tier 1 Risk-Based Capital (1)

14.54

%


14.75

%



Total Risk-Based Capital (1)

15.75

%


15.99

%



Equity to total assets (period end)

13.22

%


13.48

%



Average equity to average assets

13.47

%


13.69

%



Tangible capital (to tangible assets) (2)

12.85

%


13.10

%



Book value per common share (2)

$

10.61



$

10.53




Tangible book value per common share (2)

$

10.27



$

10.18










Other Data:






Number of full service offices

152



151




Full time equivalent employees

1,885



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



At the period ended


March 31,
2017


December 31,
2016





Total stockholders' equity

$

3,158,492



$

3,123,245


Goodwill and intangible assets

101,475



101,839


Tangible stockholders' equity

$

3,057,017



$

3,021,406






Book Value per Share Computation




Common stock issued

359,070,852



359,070,852


Treasury shares

(48,705,951)



(49,621,464)


Shares outstanding

310,364,901



309,449,388


Unallocated ESOP shares

(12,671,423)



(12,789,847)


Book value shares

297,693,478



296,659,541






Book Value Per Share

$

10.61



$

10.53






Tangible Book Value per Share

$

10.27



$

10.18


 

 

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