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 January 26, 2017, by Investors Bancorp, Inc., announcing fourth quarter financial results and cash dividend. |
INVESTORS BANCORP, INC. | ||
DATE: January 27, 2017 | By: | /s/ Sean Burke |
Sean Burke | ||
Senior Vice President and Chief Financial Officer | ||
Exhibit | Description |
99.1 | Press release dated January 26, 2017, by Investors Bancorp, Inc., announcing fourth quarter financial results and cash dividend. |
• | Total assets increased $638.7 million, or 2.8% to $23.17 billion at December 31, 2016, from $22.54 billion at September 30, 2016. |
• | Net loans increased $501.7 million, or 2.8%, to $18.57 billion at December 31, 2016 from $18.07 billion at September 30, 2016. During the three months ended December 31, 2016, we originated $467.0 million in commercial real estate loans, $424.4 million in multi-family loans, $128.4 million in residential loans, $115.8 million in construction loans, $108.5 million in commercial and industrial loans and $24.3 million in consumer and other loans. |
• | Deposits increased $329.1 million, or 2.2% from $14.95 billion at September 30, 2016 to $15.28 billion at December 31, 2016. Core deposit accounts (savings, checking and money market) represent approximately 81% of total deposits as of December 31, 2016. |
• | Net interest margin for the three months ended December 31, 2016 was 3.07%, a 7 basis point increase compared to the three months ended September 30, 2016 and a 2 basis point increase compared to the three months ended December 31, 2015. |
• | Total non-interest expenses were $89.0 million for the three months ended December 31, 2016, a decrease of $2.4 million as compared to the three months ended September 30, 2016. |
• | Non accrual loans to total loans ratio was 0.50% at December 31, 2016 compared to 0.53% in the third quarter of 2016. |
• | During the three months ended December 31, 2016, the Company repurchased 2.2 million shares of its outstanding common stock for approximately $25.9 million. Total shares repurchased during 2016 were 31.3 million shares at a cost of $363.4 million. As of December 31, 2016, the Company had approximately 21 million shares remaining under its current repurchase plan. |
• | An increase in interest and dividend income of $9.7 million, or 4.9% to $208.1 million as compared to the third quarter of 2016 primarily attributed to commercial loan growth, as well as an increase of 7 basis points on the weighted average loan yield to 4.12%. |
• | Prepayment penalties, which are included in interest income, totaled $7.4 million for the three months ended December 31, 2016 as compared to $4.0 million for the three months ended September 30, 2016. |
• | An increase in total interest expense of $601,000 was primarily attributed to an increase in the average balance of interest bearing liabilities of $583.2 million, or 3.51% to $17.22 billion, partially offset by a decrease of 2 basis points to 0.91% on the weighted average cost of interest-bearing liabilities for the three months ended December 31, 2016. |
• | An increase in interest and dividend income of $19.9 million, or 10.6% to $208.1 million as a result of a $1.95 billion increase in the average balance of net loans, partially offset by the weighted average yield on net loans decreasing 4 basis points to 4.12%. |
• | Prepayment penalties, which are included in interest income, totaled $7.4 million for the three months ended December 31, 2016 as compared to $4.5 million for the three months ended December 31, 2015. |
• | An increase in total interest expense of $2.0 million was primarily attributed to an increase in the average balance of total interest-bearing deposits of $828.7 million, or 6.8% to $12.96 billion for the three months ended December 31, 2016 and an increase in the average balance of total borrowed funds of $1.05 billion. This was partially offset by the weighted average cost of interest-bearing liabilities decreasing 6 basis points to 0.91% for the three months ended December 31, 2016. |
• | Total interest and dividend income increased by $61.8 million, or 8.4% to $793.5 million for the year ended December 31, 2016 as compared to 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 4.10%. |
• | Prepayment penalties, which are included in interest income, totaled $22.0 million for the year ended December 31, 2016 compared to $21.0 million for the year ended December 31, 2015. |
• | Total interest expense increased by $16.7 million or 12.2% to $153.3 million for the year ended December 31, 2016 as compared to 2015. The average balance of total interest-bearing deposits increased $1.06 billion, or 9.2% to $12.57 billion for the year ended December 31, 2016. In addition, the weighted average cost of interest-bearing deposits increased 3 basis points to 0.65% for the year ended December 31, 2016. |
• | Net interest margin decreased 8 basis points as compared to 2015 to 3.04% for the year ended December 31, 2016. |
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 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 | 116 | $ | 27.1 | 110 | $ | 18.9 | 131 | $ | 24.9 | 151 | $ | 28.6 | 168 | $ | 28.6 | |||||||||||||||||||
Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | 2 | 5.3 | 3 | 4.1 | — | — | 6 | 18.0 | 5 | 13.7 | ||||||||||||||||||||||||
Commercial real estate | 3 | 6.4 | 11 | 24.0 | 5 | 3.9 | 12 | 24.5 | 6 | 1.3 | ||||||||||||||||||||||||
Commercial and industrial | 4 | 0.8 | 6 | 1.4 | 1 | 2.8 | 3 | 3.8 | 3 | 0.6 | ||||||||||||||||||||||||
Total 30 to 59 days past due | 125 | $ | 39.6 | 130 | $ | 48.4 | 137 | $ | 31.6 | 172 | $ | 74.9 | 182 | $ | 44.2 | |||||||||||||||||||
60 to 89 days past due: | ||||||||||||||||||||||||||||||||||
Residential and consumer | 57 | 10.8 | 62 | 11.1 | 51 | 7.8 | 66 | 16.3 | 86 | 14.2 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | 1 | 1.1 | 1 | 1.1 | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 8 | 32.0 | 3 | 16.4 | 2 | 0.7 | 1 | 0.3 | 3 | 0.4 | ||||||||||||||||||||||||
Commercial and industrial | 4 | 0.9 | 3 | 0.4 | 1 | 0.8 | 1 | — | 2 | — | ||||||||||||||||||||||||
Total 60 to 89 days past due | 70 | 44.8 | 69 | 29.0 | 54 | 9.3 | 68 | 16.6 | 91 | 14.6 | ||||||||||||||||||||||||
Total accruing past due loans | 195 | $ | 84.4 | 199 | $ | 77.4 | 191 | $ | 40.9 | 240 | $ | 91.5 | 273 | $ | 58.8 | |||||||||||||||||||
Non-accrual: | ||||||||||||||||||||||||||||||||||
Residential and consumer | 478 | 79.9 | 481 | 86.1 | 471 | 86.5 | 488 | 85.9 | 500 | 91.1 | ||||||||||||||||||||||||
Construction | — | — | — | — | 1 | 0.2 | 3 | 0.5 | 4 | 0.8 | ||||||||||||||||||||||||
Multi-family | 2 | 0.5 | 1 | 0.2 | 2 | 1.2 | 3 | 2.9 | 4 | 3.5 | ||||||||||||||||||||||||
Commercial real estate | 24 | 9.2 | 29 | 8.9 | 33 | 11.7 | 35 | 10.3 | 37 | 10.8 | ||||||||||||||||||||||||
Commercial and industrial | 8 | 4.7 | 6 | 2.3 | 6 | 0.7 | 10 | 5.6 | 17 | 9.2 | ||||||||||||||||||||||||
Total non-accrual loans | 512 | $ | 94.3 | 517 | $ | 97.5 | 513 | $ | 100.3 | 539 | $ | 105.2 | 562 | $ | 115.4 | |||||||||||||||||||
Accruing troubled debt restructured loans | 42 | $ | 9.4 | 31 | $ | 8.8 | 29 | $ | 12.1 | 30 | $ | 10.7 | 39 | $ | 22.5 | |||||||||||||||||||
Non-accrual loans to total loans | 0.50 | % | 0.53 | % | 0.57 | % | 0.61 | % | 0.68 | % | ||||||||||||||||||||||||
Allowance for loan loss as a percent of non-accrual loans | 242.24 | % | 229.31 | % | 219.60 | % | 205.83 | % | 189.30 | % | ||||||||||||||||||||||||
Allowance for loan losses as a percent of total loans | 1.21 | % | 1.22 | % | 1.25 | % | 1.26 | % | 1.29 | % |
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Commercial Loans: | |||||||||||
Multi-family loans | $ | 7,459,131 | $ | 7,360,733 | $ | 6,255,903 | |||||
Commercial real estate loans | 4,452,300 | 4,103,250 | 3,829,099 | ||||||||
Commercial and industrial loans | 1,275,283 | 1,191,234 | 1,044,386 | ||||||||
Construction loans | 314,843 | 277,155 | 225,843 | ||||||||
Total commercial loans | 13,501,557 | 12,932,372 | 11,355,231 | ||||||||
Residential mortgage loans | 4,711,880 | 4,798,386 | 5,039,543 | ||||||||
Consumer and other | 597,265 | 576,402 | 496,556 | ||||||||
Total Loans | 18,810,702 | 18,307,160 | 16,891,330 | ||||||||
Premiums on purchased loans and deferred loan fees, net | (12,474 | ) | (15,428 | ) | (11,692 | ) | |||||
Allowance for loan losses | (228,373 | ) | (223,550 | ) | (218,505 | ) | |||||
Net loans | $ | 18,569,855 | $ | 18,068,182 | $ | 16,661,133 |
INVESTORS BANCORP, INC. AND SUBSIDIARIES | |||||||||
Consolidated Balance Sheets | |||||||||
December 31, 2016 | September 30, 2016 (1) | December 31, 2015 | |||||||
(unaudited) | (unaudited) | ||||||||
Assets | (Dollars in thousands) | ||||||||
Cash and cash equivalents | $ | 164,178 | 168,629 | 148,904 | |||||
Securities available-for-sale, at estimated fair value | 1,660,433 | 1,512,146 | 1,304,697 | ||||||
Securities held-to-maturity, net (estimated fair value of $1,782,801, $1,868,397 and $1,888,686 at December 31, 2016, September 30, 2016 and December 31, 2015, respectively) | 1,755,556 | 1,794,131 | 1,844,223 | ||||||
Loans receivable, net | 18,569,855 | 18,068,182 | 16,661,133 | ||||||
Loans held-for-sale | 38,298 | 24,240 | 7,431 | ||||||
Federal Home Loan Bank stock | 237,878 | 222,562 | 178,437 | ||||||
Accrued interest receivable | 65,969 | 66,048 | 58,563 | ||||||
Other real estate owned | 4,492 | 4,835 | 6,283 | ||||||
Office properties and equipment, net | 177,417 | 178,623 | 172,519 | ||||||
Net deferred tax asset | 222,277 | 228,902 | 237,367 | ||||||
Bank owned life insurance | 161,940 | 161,187 | 159,152 | ||||||
Goodwill and intangible assets | 101,839 | 102,825 | 105,311 | ||||||
Other assets | 14,543 | 3,667 | 4,664 | ||||||
Total assets | $ | 23,174,675 | 22,535,977 | 20,888,684 | |||||
Liabilities and Stockholders' Equity | |||||||||
Liabilities: | |||||||||
Deposits | $ | 15,280,833 | 14,951,742 | 14,063,656 | |||||
Borrowed funds | 4,546,251 | 4,203,711 | 3,263,090 | ||||||
Advance payments by borrowers for taxes and insurance | 105,851 | 122,823 | 108,721 | ||||||
Other liabilities | 118,495 | 142,612 | 141,570 | ||||||
Total liabilities | 20,051,430 | 19,420,888 | 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 December 31, 2016 September 30, 2016, and December 31, 2015; 309,449,388, 310,528,382 and 334,894,181 outstanding at December 31, 2016, September 30, 2016 and December 31, 2015, respectively | 3,591 | 3,591 | 3,591 | ||||||
Additional paid-in capital | 2,765,732 | 2,764,023 | 2,785,503 | ||||||
Retained earnings | 1,053,750 | 1,026,016 | 936,040 | ||||||
Treasury stock, at cost; 49,621,464, 48,542,470 and 24,176,671 shares at December 31, 2016, September 30, 2016 and December 31, 2015, respectively | (587,974 | ) | (575,187 | ) | (295,412 | ) | |||
Unallocated common stock held by the employee stock ownership plan | (87,254 | ) | (88,003 | ) | (90,250 | ) | |||
Accumulated other comprehensive loss | (24,600 | ) | (15,351 | ) | (27,825 | ) | |||
Total stockholders' equity | 3,123,245 | 3,115,089 | 3,311,647 | ||||||
Total liabilities and stockholders' equity | $ | 23,174,675 | 22,535,977 | 20,888,684 |
INVESTORS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
For the Three Months Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 (1) | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Loans receivable and loans held-for-sale | $ | 187,912 | 179,234 | 169,641 | 715,901 | 663,424 | ||||||||||||||
Securities: | ||||||||||||||||||||
GSE obligations | 8 | 8 | 11 | 36 | 45 | |||||||||||||||
Mortgage-backed securities | 15,631 | 14,653 | 14,722 | 60,211 | 55,096 | |||||||||||||||
Equity | 51 | 49 | 50 | 198 | 123 | |||||||||||||||
Municipal bonds and other debt | 1,665 | 2,039 | 1,778 | 7,713 | 5,929 | |||||||||||||||
Interest-bearing deposits | 88 | 76 | 101 | 342 | 225 | |||||||||||||||
Federal Home Loan Bank stock | 2,724 | 2,315 | 1,835 | 9,120 | 6,881 | |||||||||||||||
Total interest and dividend income | 208,079 | 198,374 | 188,138 | 793,521 | 731,723 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 20,418 | 20,326 | 20,302 | 82,057 | 71,414 | |||||||||||||||
Borrowed funds | 18,951 | 18,442 | 17,020 | 71,279 | 65,225 | |||||||||||||||
Total interest expense | 39,369 | 38,768 | 37,322 | 153,336 | 136,639 | |||||||||||||||
Net interest income | 168,710 | 159,606 | 150,816 | 640,185 | 595,084 | |||||||||||||||
Provision for loan losses | 4,750 | 5,000 | 5,000 | 19,750 | 26,000 | |||||||||||||||
Net interest income after provision for loan losses | 163,960 | 154,606 | 145,816 | 620,435 | 569,084 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Fees and service charges | 4,223 | 4,108 | 4,170 | 17,148 | 17,119 | |||||||||||||||
Income on bank owned life insurance | 1,156 | 1,006 | 987 | 4,423 | 3,948 | |||||||||||||||
Gain on loans, net | 1,271 | 1,401 | 1,325 | 4,787 | 7,786 | |||||||||||||||
Gain on securities transactions | — | 72 | 19 | 3,100 | 1,036 | |||||||||||||||
Gain on sales of other real estate owned, net | 163 | 35 | 490 | 96 | 1,631 | |||||||||||||||
Other income | 1,691 | 1,898 | 1,709 | 7,647 | 8,605 | |||||||||||||||
Total non-interest income | 8,504 | 8,520 | 8,700 | 37,201 | 40,125 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Compensation and fringe benefits | 48,223 | 53,051 | 48,620 | 206,698 | 186,320 | |||||||||||||||
Advertising and promotional expense | 3,004 | 1,495 | 2,456 | 8,644 | 10,988 | |||||||||||||||
Office occupancy and equipment expense | 14,608 | 14,099 | 13,467 | 56,220 | 50,865 | |||||||||||||||
Federal insurance premiums | 3,383 | 3,600 | 2,250 | 12,183 | 9,050 | |||||||||||||||
General and administrative | 724 | 641 | 993 | 3,131 | 4,372 | |||||||||||||||
Professional fees | 5,611 | 5,673 | 4,511 | 20,104 | 16,104 | |||||||||||||||
Data processing and communication | 5,222 | 5,299 | 5,591 | 21,043 | 22,366 | |||||||||||||||
Other operating expenses | 8,235 | 7,540 | 7,778 | 30,541 | 28,267 | |||||||||||||||
Total non-interest expenses | 89,010 | 91,398 | 85,666 | 358,564 | 328,332 | |||||||||||||||
Income before income tax expense | 83,454 | 71,728 | 68,850 | 299,072 | 280,877 | |||||||||||||||
Income tax expense | 30,989 | 21,878 | 24,448 | 106,947 | 99,372 | |||||||||||||||
Net income | $ | 52,465 | 49,850 | 44,402 | 192,125 | 181,505 | ||||||||||||||
Basic earnings per share | $0.18 | 0.17 | 0.14 | 0.65 | 0.55 | |||||||||||||||
Diluted earnings per share | $0.18 | 0.17 | 0.14 | 0.64 | 0.55 | |||||||||||||||
Basic weighted average shares outstanding | 290,751,171 | 292,000,061 | 317,826,651 | 297,580,834 | 329,763,527 | |||||||||||||||
Diluted weighted average shares outstanding | 292,623,922 | 294,673,452 | 321,234,483 | 300,954,885 | 332,933,448 |
INVESTORS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Information | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 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 | $ | 154,678 | 88 | 0.23 | % | $ | 129,226 | 76 | 0.24 | % | $ | 219,187 | 101 | 0.18 | % | |||||||||||||
Securities available-for-sale | 1,574,840 | 7,165 | 1.82 | % | 1,424,338 | 6,315 | 1.77 | % | 1,274,141 | 5,971 | 1.87 | % | ||||||||||||||||
Securities held-to-maturity | 1,778,239 | 10,190 | 2.29 | % | 1,815,288 | 10,434 | 2.30 | % | 1,824,935 | 10,590 | 2.32 | % | ||||||||||||||||
Net loans | 18,258,406 | 187,912 | 4.12 | % | 17,707,883 | 179,234 | 4.05 | % | 16,311,324 | 169,641 | 4.16 | % | ||||||||||||||||
Federal Home Loan Bank stock | 224,917 | 2,724 | 4.84 | % | 216,813 | 2,315 | 4.27 | % | 175,849 | 1,835 | 4.17 | % | ||||||||||||||||
Total interest-earning assets | 21,991,080 | 208,079 | 3.78 | % | 21,293,548 | 198,374 | 3.73 | % | 19,805,436 | 188,138 | 3.80 | % | ||||||||||||||||
Non-interest earning assets | 794,131 | 778,244 | 774,784 | |||||||||||||||||||||||||
Total assets | $ | 22,785,211 | $ | 22,071,792 | $ | 20,580,220 | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Savings | $ | 2,087,267 | 1,620 | 0.31 | % | $ | 2,104,583 | 1,577 | 0.30 | % | $ | 2,116,231 | 1,557 | 0.29 | % | |||||||||||||
Interest-bearing checking | 3,901,601 | 5,070 | 0.52 | % | 3,472,472 | 4,451 | 0.51 | % | 2,858,600 | 2,532 | 0.35 | % | ||||||||||||||||
Money market accounts | 4,094,678 | 6,737 | 0.66 | % | 3,971,339 | 6,605 | 0.67 | % | 3,741,248 | 6,417 | 0.69 | % | ||||||||||||||||
Certificates of deposit | 2,873,374 | 6,991 | 0.97 | % | 3,009,330 | 7,693 | 1.02 | % | 3,412,178 | 9,796 | 1.15 | % | ||||||||||||||||
Total interest bearing deposits | 12,956,920 | 20,418 | 0.63 | % | 12,557,724 | 20,326 | 0.65 | % | 12,128,257 | 20,302 | 0.67 | % | ||||||||||||||||
Borrowed funds | 4,258,697 | 18,951 | 1.78 | % | 4,074,743 | 18,442 | 1.81 | % | 3,203,911 | 17,020 | 2.12 | % | ||||||||||||||||
Total interest-bearing liabilities | 17,215,617 | 39,369 | 0.91 | % | 16,632,467 | 38,768 | 0.93 | % | 15,332,168 | 37,322 | 0.97 | % | ||||||||||||||||
Non-interest bearing liabilities | 2,450,879 | 2,316,873 | 1,898,587 | |||||||||||||||||||||||||
Total liabilities | 19,666,496 | 18,949,340 | 17,230,755 | |||||||||||||||||||||||||
Stockholders' equity | 3,118,715 | 3,122,452 | 3,349,465 | |||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 22,785,211 | $ | 22,071,792 | $ | 20,580,220 | ||||||||||||||||||||||
Net interest income | $ | 168,710 | $ | 159,606 | $ | 150,816 | ||||||||||||||||||||||
Net interest rate spread | 2.87 | % | 2.80 | % | 2.83 | % | ||||||||||||||||||||||
Net interest earning assets | $ | 4,775,463 | $ | 4,661,081 | $ | 4,473,268 | ||||||||||||||||||||||
Net interest margin | 3.07 | % | 3.00 | % | 3.05 | % | ||||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.28 | X | 1.28 | X | 1.29 | X |
INVESTORS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Average Balance Sheet and Yield/Rate Information | |||||||||||||||||||
Year Ended | |||||||||||||||||||
December 31, 2016 | December 31, 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 | $ | 144,610 | 342 | 0.24 | % | $ | 207,331 | 225 | 0.11 | % | |||||||||
Securities available-for-sale | 1,398,373 | 25,515 | 1.82 | % | 1,245,745 | 22,646 | 1.82 | % | |||||||||||
Securities held-to-maturity | 1,836,692 | 42,643 | 2.32 | % | 1,708,176 | 38,547 | 2.26 | % | |||||||||||
Net loans | 17,479,932 | 715,901 | 4.10 | % | 15,716,010 | 663,424 | 4.22 | % | |||||||||||
Federal Home Loan Bank stock | 204,735 | 9,120 | 4.45 | % | 172,367 | 6,881 | 3.99 | % | |||||||||||
Total interest-earning assets | 21,064,342 | 793,521 | 3.77 | % | 19,049,629 | 731,723 | 3.84 | % | |||||||||||
Non-interest earning assets | 779,138 | 770,262 | |||||||||||||||||
Total assets | $ | 21,843,480 | $ | 19,819,891 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings | $ | 2,096,769 | 6,304 | 0.30 | % | $ | 2,235,703 | 6,402 | 0.29 | % | |||||||||
Interest-bearing checking | 3,381,909 | 16,268 | 0.48 | % | 2,735,513 | 9,642 | 0.35 | % | |||||||||||
Money market accounts | 3,925,095 | 25,621 | 0.65 | % | 3,564,311 | 24,136 | 0.68 | % | |||||||||||
Certificates of deposit | 3,161,843 | 33,864 | 1.07 | % | 2,972,611 | 31,234 | 1.05 | % | |||||||||||
Total interest bearing deposits | 12,565,616 | 82,057 | 0.65 | % | 11,508,138 | 71,414 | 0.62 | % | |||||||||||
Borrowed funds | 3,816,087 | 71,279 | 1.87 | % | 3,157,311 | 65,225 | 2.07 | % | |||||||||||
Total interest-bearing liabilities | 16,381,703 | 153,336 | 0.94 | % | 14,665,449 | 136,639 | 0.93 | % | |||||||||||
Non-interest bearing liabilities | 2,289,036 | 1,702,945 | |||||||||||||||||
Total liabilities | 18,670,739 | 16,368,394 | |||||||||||||||||
Stockholders' equity | 3,172,741 | 3,451,497 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 21,843,480 | $ | 19,819,891 | |||||||||||||||
Net interest income | $ | 640,185 | $ | 595,084 | |||||||||||||||
Net interest rate spread | 2.83 | % | 2.91 | % | |||||||||||||||
Net interest earning assets | $ | 4,682,639 | $ | 4,384,180 | |||||||||||||||
Net interest margin | 3.04 | % | 3.12 | % | |||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.29 | X | 1.30 | X |
INVESTORS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
Selected Performance Ratios | |||||||||||||||||
For the Three Months Ended | Year Ended | ||||||||||||||||
December 31, 2016 | September 30, 2016 (1) | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||
Return on average assets | 0.92 | % | 0.90 | % | 0.86 | % | 0.88 | % | 0.92 | % | |||||||
Return on average assets, adjusted (2) | 0.91 | % | 0.79 | % | 0.85 | % | 0.84 | % | 0.87 | % | |||||||
Return on average equity | 6.73 | % | 6.39 | % | 5.30 | % | 6.06 | % | 5.26 | % | |||||||
Return on average tangible equity | 6.96 | % | 6.60 | % | 5.48 | % | 6.26 | % | 5.43 | % | |||||||
Return on average tangible equity, adjusted (2) | 6.85 | % | 5.76 | % | 5.38 | % | 5.97 | % | 5.18 | % | |||||||
Interest rate spread | 2.87 | % | 2.80 | % | 2.83 | % | 2.83 | % | 2.91 | % | |||||||
Net interest margin | 3.07 | % | 3.00 | % | 3.05 | % | 3.04 | % | 3.12 | % | |||||||
Efficiency ratio | 50.23 | % | 54.36 | % | 53.70 | % | 52.93 | % | 51.69 | % | |||||||
Efficiency ratio, adjusted (2) | 48.94 | % | 54.36 | % | 52.89 | % | 52.60 | % | 51.48 | % | |||||||
Non-interest expense to average total assets | 1.56 | % | 1.66 | % | 1.67 | % | 1.64 | % | 1.66 | % | |||||||
Average interest-earning assets to average interest-bearing liabilities | 1.28 | 1.28 | 1.29 | 1.29 | 1.30 | ||||||||||||
(1) September 30, 2016 ratios have been revised to reflect the impact of the Company's adoption of ASU No. 2016-09. | |||||||||||||||||
(2) See Non GAAP Reconciliation. | |||||||||||||||||
INVESTORS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
Selected Financial Ratios and Other Data | |||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Non-performing assets as a percent of total assets | 0.47 | % | 0.49 | % | 0.69 | % | |||||||||||
Non-performing loans as a percent of total loans | 0.55 | % | 0.58 | % | 0.82 | % | |||||||||||
Allowance for loan losses as a percent of non-accrual loans | 242.24 | % | 229.31 | % | 189.30 | % | |||||||||||
Allowance for loan losses as a percent of total loans | 1.21 | % | 1.22 | % | 1.29 | % | |||||||||||
Capital Ratios: | |||||||||||||||||
Tier 1 Leverage Ratio (1) | 12.03 | % | 12.25 | % | 12.41 | % | |||||||||||
Common equity tier 1 risk-based (1) | 14.75 | % | 15.09 | % | 15.87 | % | |||||||||||
Tier 1 Risk-Based Capital (1) | 14.75 | % | 15.09 | % | 15.87 | % | |||||||||||
Total Risk-Based Capital (1) | 15.98 | % | 16.33 | % | 17.12 | % | |||||||||||
Equity to total assets (period end) | 13.48 | % | 13.82 | % | 15.85 | % | |||||||||||
Average equity to average assets | 13.69 | % | 14.15 | % | 16.28 | % | |||||||||||
Tangible capital (to tangible assets) (2) | 13.10 | % | 13.43 | % | 15.43 | % | |||||||||||
Book value per common share (2) | $ | 10.53 | $ | 10.47 | $ | 10.30 | |||||||||||
Tangible book value per common share (2) | $ | 10.18 | $ | 10.12 | $ | 9.97 | |||||||||||
Other Data: | |||||||||||||||||
Number of full service offices | 151 | 148 | 140 | ||||||||||||||
Full time equivalent employees | 1,829 | 1,782 | 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 | ||||||||||||
December 31, 2016 | September 30, 2016 (1) | December 31, 2015 | ||||||||||
Total stockholders' equity | 3,123,245 | 3,115,089 | 3,311,647 | |||||||||
Goodwill and intangible assets | 101,839 | 102,825 | 105,311 | |||||||||
Tangible stockholders' equity | 3,021,406 | 3,012,264 | 3,206,336 | |||||||||
Book Value per Share Computation | ||||||||||||
Common stock issued | 359,070,852 | 359,070,852 | 359,070,852 | |||||||||
Treasury shares | (49,621,464 | ) | (48,542,470 | ) | (24,176,671 | ) | ||||||
Shares Outstanding | 309,449,388 | 310,528,382 | 334,894,181 | |||||||||
Unallocated ESOP shares | (12,789,847 | ) | (12,908,272 | ) | (13,263,545 | ) | ||||||
Book value shares | 296,659,541 | 297,620,110 | 321,630,636 | |||||||||
Book Value Per Share | $ | 10.53 | $ | 10.47 | $ | 10.30 | ||||||
Tangible Book Value per Share | $ | 10.18 | $ | 10.12 | $ | 9.97 | ||||||
Investors Bancorp, Inc. | ||||||||||||||||
Non GAAP Reconciliation | ||||||||||||||||
(dollars in thousands, except share data) | ||||||||||||||||
Net Income and Diluted EPS, as adjusted | ||||||||||||||||
For the Three Months Ended | For the Year Ended December 31 | |||||||||||||||
December 31 | September 30 | December 31 | ||||||||||||||
2016 | 2016 (1) | 2015 | 2016 | 2015 | ||||||||||||
Income before income tax expense | $ | 83,454 | $ | 71,728 | $ | 68,850 | $ | 299,072 | $ | 280,877 | ||||||
Income tax expense | 30,989 | 21,878 | 24,448 | 106,947 | 99,372 | |||||||||||
Net Income | 52,465 | 49,850 | 44,402 | 192,125 | 181,505 | |||||||||||
Compensation and fringe benefits (2) | 1,445 | — | 1,298 | 1,445 | 1,298 | |||||||||||
Professional fees (3) | 840 | — | — | 840 | — | |||||||||||
Total one time items | 2,285 | — | 1,298 | 2,285 | 1,298 | |||||||||||
One time items, net of tax | 1,377 | — | 837 | 1,388 | 839 | |||||||||||
Tax adjustment (4) | (2,175 | ) | (6,409 | ) | (1,601 | ) | (10,414 | ) | (8,940 | ) | ||||||
Adjusted net income | $ | 51,667 | $ | 43,441 | $ | 43,638 | $ | 183,099 | $ | 173,404 | ||||||
Adjusted tax rate | 39.7 | % | 39.5 | % | 37.8 | % | 39.2 | % | 38.6 | % | ||||||
Adjusted diluted earnings per share | $ | 0.18 | $ | 0.15 | $ | 0.14 | $ | 0.61 | $ | 0.52 | ||||||
Weighted average diluted shares | 292,623,922 | 294,673,452 | 321,234,483 | 300,954,885 | 332,933,448 | |||||||||||
Performance Ratio, as adjusted | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
December 31 | September 30 | December 31 | For the Year Ended December 31, | |||||||||||||
2016 | 2016 (1) | 2015 | 2016 | 2015 | ||||||||||||
Total non-interest expense | $ | 89,010 | $ | 91,398 | $ | 85,666 | $ | 358,564 | $ | 328,332 | ||||||
Net interest income | 168,710 | 159,606 | 150,816 | 640,185 | 595,084 | |||||||||||
Total non-interest income | 8,504 | 8,520 | 8,700 | 37,201 | 40,125 | |||||||||||
Efficiency Ratio | 50.23 | % | 54.36 | % | 53.70 | % | 52.93 | % | 51.69 | % | ||||||
Compensation and fringe benefits (2) | 1,445 | — | 1,298 | 1,445 | 1,298 | |||||||||||
Professional fees (3) | 840 | $ | — | — | 840 | — | ||||||||||
Adjusted Non-Interest Expense | $ | 86,725 | $ | 91,398 | $ | 84,368 | $ | 356,279 | $ | 327,034 | ||||||
Adjusted Efficiency Ratio | 48.94 | % | 54.36 | % | 52.89 | % | 52.60 | % | 51.48 | % | ||||||
Average tangible equity | 3,016,484 | 3,018,996 | 3,243,506 | 3,068,885 | 3,345,520 | |||||||||||
Average assets | 22,785,211 | 22,071,792 | 20,580,220 | 21,843,480 | 19,819,891 | |||||||||||
Adjusted return on average assets | 0.91% | 0.79% | 0.85% | 0.84% | 0.87% | |||||||||||
Adjusted return on average tangible equity | 6.85% | 5.76% | 5.38% | 5.97% | 5.18% | |||||||||||
(1) September 30, 2016 ratios have been revised to reflect the impact of the Company's adoption of ASU No. 2016-09. |
(2) For the 2016 periods, compensation includes expenses related to the accelerated vesting of equity awards upon the death of a director. For the 2015 periods, compensation expense includes a one time item related to a payout under an employment agreement with our former CFO. | ||||||||||||||||
(3) As a result of the termination of the Bank of Princeton acquisition, professional fees were expensed during 2016. | ||||||||||||||||
(4) For the 2016 periods, amounts represent the tax impact of the Company’s adoption of ASU No. 2016-09. For the 2015 periods, represents a tax benefit realized from revaluing the Company's deferred tax asset as a result of the New York City tax law reform enacted in 2015 as well as a net operating loss carryforward related to a prior acquisition. |