Delaware | 001-36441 | 46-4702118 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer | ||
Identification No.) |
101 JFK Parkway, Short Hills, New Jersey | 07078 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operation and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits |
(a) | Not Applicable. |
(b) | Not Applicable. |
(c) | Not Applicable |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press release dated July 27, 2016, by Investors Bancorp, Inc., announcing second quarter financial results and cash dividend. |
INVESTORS BANCORP, INC. | ||
DATE: July 28, 2016 | By: | /s/ Sean Burke |
Sean Burke | ||
Senior Vice President and Chief Financial Officer | ||
Exhibit | Description |
99.1 | Press release dated July 27, 2016, by Investors Bancorp, Inc., announcing second quarter financial results and cash dividend. |
• | 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. |
• | 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. |
• | 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. |
• | 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. |
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 | % |
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 |
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. |