SHORT HILLS, N.J., Jan. 26, 2022 /PRNewswire/ -- Investors
Bancorp, Inc. (NASDAQ: ISBC) ("Company"), the holding company for
Investors Bank ("Bank"), reported net income of $94.3 million, or $0.40 per diluted share, for the three months
ended December 31, 2021 as compared to $66.9 million, or $0.28 per diluted share, for the three months
ended September 30, 2021 and $75.1
million, or $0.32 per diluted
share, for the three months ended December 31, 2020.
For the year ended December 31, 2021, net income totaled
$313.3 million, or $1.33 per diluted share, compared to $221.6 million, or $0.94 per diluted share, for the year ended
December 31, 2020.
The Company also announced today that its Board of Directors
declared a cash dividend of $0.16 per
share to be paid on February 25, 2022
for stockholders of record as of February
10, 2022.
Kevin Cummings, Chairman and CEO,
commented, "We closed the year out on a strong note, with both
loans and non-interest bearing deposits growing at double-digit
annualized levels. In addition, our profitability reached
new heights as the economy and the real estate markets
continued to improve over the course of the year. Return on
average assets was 1.17% and return on average tangible equity was
12% for the year ended 2021. Importantly, our balance sheet is
better positioned for rising rates than it was during the last
rising interest rate cycle."
Mr. Cummings also commented, "With Shareholder approval received
in November, we look forward to the completion of our merger with
Citizens. As we await regulatory approvals of the deal, our
teams continue to work to ensure a smooth closing and
transition."
Performance Highlights
- Total loans increased $692.7
million, or 3.2%, to $22.60
billion during the three months ended December 31, 2021. Commercial Real Estate and
Multi Family loans increased $236.6
million, or 4.6% and $210.5
million, or 2.7% respectively. C&I loans increased
$179.9 million, or 4.6%, during the
three months ended December 31,
2021.
- Non-interest-bearing deposits increased $312.4 million, or 7.2%, during the three months
ended December 31, 2021. The cost of
interest-bearing deposits decreased 3 basis points to 0.37% for the
three months ended December 31, 2021
compared to the three months ended September
30, 2021.
- Return on average assets and return on average tangible equity
were 1.35% and 13.68% for the three months ended December 31, 2021, respectively.
- Net interest margin increased 1 basis point to 3.00% for the
three months ended December 31, 2021
compared to the three months ended September
30, 2021.
- Provision for credit losses was a negative $23.0 million for the three months ended
December 31, 2021 compared with a
negative $13.0 million for the three
months ended September 30, 2021.
- Total non-interest income was $15.4
million for the three months ended December 31, 2021, a decrease of $518,000 compared to the three months ended
September 30, 2021.
- Total non-interest expenses were $110.9
million for the three months ended December 31, 2021, a decrease of $21.1 million compared to the three months ended
September 30, 2021. Included in
non-interest expenses for the fourth quarter were $1.5 million of merger and acquisition related
costs in connection with the Citizens transaction. Third quarter
non-interest expenses included $10.2
million of debt extinguishment costs and $14.9 million of merger and acquisition related
costs.
- At December 31, 2021, COVID-19
Cares Act related loan payment deferrals decreased to $279 million, or 1.2% of loans, compared to
$496 million, or 2.3% of loans, as of
September 30, 2021. Cares Act loan
payment deferrals totaling $275
million are scheduled to expire in the first quarter of
2022. Approximately 96% of borrowers with a Cares Act loan payment
deferral were making interest payments as of December 31, 2021.
- Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1
Risk-Based and Total Risk-Based Capital Ratios were 10.19%, 12.83%,
12.83% and 14.00%, respectively, at December
31, 2021.
- On November 19, 2021 the
Company's shareholders approved the planned merger with Citizens
Financial Group, Inc at a special meeting. Citizens Financial Group
and the Company are targeting a transaction close in
early second quarter of 2022, subject to the receipt of
required regulatory approvals and other customary closing
conditions.
Financial Performance Overview
Fourth Quarter 2021 compared to Third Quarter
2021
For the fourth quarter of 2021, net income totaled $94.3 million, an increase of $27.4 million as compared to $66.9 million for the third quarter of
2021. The changes in net income on a sequential quarter basis
are highlighted below.
Net interest income increased by $6.4
million, or 3.3%, as compared to the third quarter of
2021. Changes within interest income and expense categories
were as follows:
- Interest and dividend income increased $3.8 million, or 1.6%, to $235.0 million as compared to the third quarter
of 2021, primarily attributable to the average balance of net loans
which increased $545.2 million,
mainly as a result of loan originations as well as an increase in
prepayment penalties. The weighted average yield on net loans
decreased 4 basis points to 3.93%.
- Prepayment penalties, which are included in interest income,
totaled $6.2 million for the three
months ended December 31, 2021 as
compared to $5.3 million for the
three months ended September 30,
2021.
- Interest expense decreased $2.6
million, primarily attributed to the weighted average cost
of interest-bearing liabilities which decreased 7 basis points to
0.68% for the three months ended December
31, 2021. In addition, the average balance of total borrowed
funds decreased $364.6 million, or
9.4%, to $3.50 billion for the three
months ended December 31, 2021, while
the average balance of interest-bearing deposits increased
$743.3 million, or 4.8%, to
$16.38 billion for the three months
ended December 31, 2021.
Net interest margin increased 1 basis point to 3.00% for the
three months ended December 31, 2021 compared to the three
months ended September 30, 2021.
Total non-interest income was $15.4
million for the three months ended December 31, 2021, a
decrease of $518,000, as compared to
$16.0 million for the third quarter
of 2021. The decrease in non-interest income was due primarily
to decreases in other income and gain on loans of $1.3 million and $1.6
million, respectively, offset by increases of in gains
on securities and fees and service charges of $1.4 million and $947,000, respectively.
Total non-interest expenses were $110.9
million for the three months ended December 31, 2021, a
decrease of $21.1 million compared to
the three months ended September 30, 2021. Included in
non-interest expenses for the fourth quarter were $1.5 million of merger and acquisition related
costs, while third quarter non-interest expenses included
$10.2 million of debt extinguishment
costs and $14.9 million of merger and
acquisition related costs resulting from the recent Berkshire Bank
transaction and the pending Citizens transaction. Excluding
these items, non-interest expenses increased approximately
$2.5 million driven primarily by
advertising and promotion and office occupancy expenses.
Income tax expense was $34.2
million for the three months ended December 31, 2021
and $24.6 million for the three
months ended September 30, 2021. The effective tax rate was
26.6% for the three months ended December 31, 2021 and 26.9%
for the three months ended September 30, 2021.
Fourth Quarter 2021 compared to Fourth Quarter
2020
For the fourth quarter of 2021, net income totaled $94.3 million, an increase of $19.2 million as compared to $75.1 million in the fourth quarter of 2020. The
changes in net income on a year over year quarter basis are
highlighted below.
On a year over year basis, fourth quarter of 2021 net interest
income increased by $12.2 million, or
6.4%, as compared to the fourth quarter of 2020 due to:
- Interest expense decreased $15.1
million, or 30.7%, primarily attributed to the weighted
average cost of interest-bearing liabilities, which decreased 32
basis points to 0.68% for the three months ended December 31, 2021. In addition, the average
balance of interest-bearing deposits increased $233.2 million, or 1.4%, to $16.38 billion for the three months ended
December 31, 2021.
- Interest and dividend income decreased $2.9 million, or 1.2%, to $235.0 million, primarily attributable to the
weighted average yield on net loans which decreased 20 basis point
to 3.93% and the weighted average yield on securities which
decreased 27 basis points to 1.83%. Partially offsetting this
decrease, the average balance of net loans increased $1.13 billion, mainly as a result of loan
originations and $219 million of
loans acquired from Berkshire Bank, partially offset by paydowns
and payoffs.
- Prepayment penalties, which are included in interest income,
totaled $6.2 million for the three
months ended December 31, 2021 as
compared to $9.2 million for the
three months ended December 31,
2020.
Net interest margin increased 2 basis points year over year to
3.00% for the three months ended December 31, 2021 from 2.98%
for the three months ended December 31, 2020, driven primarily
by the lower cost of interest-bearing liabilities, partially offset
by the lower yield on interest-earning assets.
Total non-interest income was $15.4
million for the three months ended December 31, 2021, a
decrease of $30.4 million year over
year. Included in non-interest income for the three months
ended December 31, 2020 were
$23.1 million of gains from
sale-leaseback transactions. Excluding this item, non-interest
income decreased $7.2 million,
primarily due to a decrease of $5.4
million in gain on loans due to a lower volume of mortgage
banking loan sales to third parties and a decrease in other income
of $3.0 million, partially offset by
an increase in fees and service charges of $1.2 million.
Total non-interest expenses were $110.9
million for the three months ended December 31, 2021, a
decrease of $32.0 million compared to
the three months ended December 31, 2020. Included in
non-interest expenses for the fourth quarter 2021 were $1.5 million of merger and acquisition related
costs from the pending Citizen's transaction, while fourth quarter
2020 non-interest expenses included debt extinguishment costs of
$22.8 million as well as $11.7 million of costs associated with the
Company's branch rationalization plans. Excluding these items,
non-interest expenses increased approximately $1.0 million.
Income tax expense was $34.2
million for the three months ended December 31, 2021
and $19.3 million for the three
months ended December 31, 2020. The effective tax rate
was 26.6% for the three months ended December 31, 2021 and
20.4% for the three months ended December 31, 2020.
Year Ended December 31, 2021 compared to Year Ended
December 31, 2020
Net income increased by $91.8
million year over year to $313.3
million for the year ended December 31, 2021. The
changes in net income on a year over year basis are highlighted
below.
Net interest income increased by $45.3
million as compared to the year ended December 31, 2020
due to:
- Interest expense decreased by $107.6
million, or 42.2%, to $147.6
million for the year ended December
31, 2021, as compared to $255.2
million for the year ended December
31, 2020, primarily attributed to a decrease in the weighted
average cost of interest-bearing liabilities of 46 basis points to
0.77% for the year ended December 31,
2021. In addition, the average balance of total borrowed
funds decreased $960.2 million, or
20.6%, to $3.70 billion for the year
ended December 31, 2021 and the
average balance of interest-bearing deposits decreased $508.2 million, or 3.2%, to $15.59 billion for the year ended December 31, 2021.
- Interest and dividend income decreased by $62.3 million, or 6.3%, to $918.6 million for the year ended December 31, 2021 as compared to the year ended
December 31, 2020, primarily
attributed to the weighted average yield on net loans, which
decreased 18 basis points to 3.96%, and the weighted average yield
on securities, which decreased 49 basis points to 1.92% as well as
the impact of higher cash balances at year end December 31, 2021.
- Prepayment penalties, which are included in interest income,
totaled $24.6 million for the year
ended December 31, 2021, as compared
to $32.4 million for the year ended
December 31, 2020.
Net interest margin increased 20 basis points to 3.00% for the
year ended December 31, 2021 from 2.80% for the year ended
December 31, 2020, primarily driven by the lower cost of
interest-bearing liabilities, partially offset by the lower yield
on interest-earning assets.
Total non-interest income was $64.5
million for the year ended December 31, 2021, a
decrease of $26.1 million as compared
to the year ended December 31, 2020. Included in non-interest
income for the year ended December 30,
2020 were $23.1 million of
gains from sale-leaseback transactions. Excluding this item,
non-interest income decreased $2.9
million, primarily due to a decrease of $9.3 million in gain on loans due to a lower
volume of mortgage banking loan sales to third parties offset by
increases of $4.2 in fees and
service charges and $3.2 in other
income.
Total non-interest expenses were $455.7
million for the year ended December 31, 2021, an
increase of $6.2 million compared to
the year ended December 31, 2020. This increase was
driven by increases of $10.3 million
in professional fees primarily driven by acquisition-related fees,
$4.1 million in compensation and
fringe benefit expense primarily related to incentive compensation
and medical expenses, $3.3 million in
data processing and communication expenses, $2.7 million in other operating expenses, offset
by a decrease of $13.9 million in
debt extinguishment costs.
Income tax expense was $115.1
million for the year ended December 31, 2021 compared
to $75.0 million for the year ended
December 31, 2020. The effective tax rate was 26.9% for
the year ended December 31, 2021 and 25.3% for the year ended
December 31, 2020.
Asset Quality
Our provision for credit losses is primarily a result of the
expected credit losses on our loans, unfunded commitments and
held-to-maturity debt securities over the life of these financial
instruments based on historical experience, current conditions and
reasonable and supportable forecasts. Our provision for credit
losses is also impacted by the inherent credit risk in these
financial instruments, the composition of and changes in our
portfolios of these financial instruments, and the level of
charge-offs. At December 31, 2021, our allowance for credit
losses continues to be affected by the impact of the COVID-19
pandemic on the current and forecasted economic
conditions. For the three months ended December 31, 2021,
our provision for credit losses was impacted by improving economic
and commercial real estate conditions and forecasts. For the three
months ended December 31, 2021, our provision for credit
losses was negative $23.0 million,
compared to negative $13.0 million
for the three months ended September 30, 2021 and negative
$2.7 million for the three months
ended December 31, 2020. Our provision was impacted by
net loan charge-offs of $1.7 million
for the three months ended December 31, 2021, net loan
charge-offs of $252,000 for the three
months ended September 30, 2021 and net loan recoveries of
$2.1 million for the three months
ended December 31, 2020. Our provision for credit losses
was negative $48.7 million for the
year ended December 31, 2021 compared to $70.2 million for the year ended
December 31, 2020. Our provision was impacted by net loan
recoveries of $541,000 for the year
ended December 31, 2021 and net loan charge-offs of
$10.7 million for the year ended
December 31, 2020.
Total non-accrual loans were $105.2
million, or 0.47% of total loans, at December 31, 2021
compared to $76.5 million, or 0.35%
of total loans, at September 30, 2021 and $107.1 million, or 0.51% of total loans, at
December 31, 2020. For the three months ended
December 31, 2021, the increase in
non-accrual loans was driven by a previously disclosed multi-family
potential problem loan totaling $35.8
million as of December 31,
2021 that was restructured and classified as a troubled debt
restructuring and moved to non-accrual status in the fourth
quarter. The borrower is performing in accordance with the
modified terms. We continue to proactively work to resolve our
non-accrual loans.
At December 31, 2021, there were $60.6 million of loans deemed as troubled debt
restructured loans ("TDRs"), of which $35.8
million was a multi-family loan, $19.7 million were residential and consumer loans
and $4.3 million were commercial real
estate loans. TDRs of $7.6 million
were classified as accruing and $53.1
million were classified as non-accrual at December 31,
2021.
The following table sets forth non-accrual loans and accruing
past due loans (excluding loans held for sale) on the dates
indicated as well as certain asset quality ratios.
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
# 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
|
47
|
|
$
10.7
|
|
50
|
|
$
12.3
|
|
62
|
|
$
12.8
|
|
62
|
|
$
13.2
|
|
84
|
|
$
18.5
|
|
Construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Multi-family
|
7
|
|
14.0
|
|
9
|
|
11.5
|
|
8
|
|
16.2
|
|
10
|
|
19.2
|
|
5
|
|
7.3
|
|
Commercial real
estate
|
7
|
|
15.6
|
|
9
|
|
19.5
|
|
2
|
|
0.5
|
|
8
|
|
11.1
|
|
8
|
|
9.5
|
|
Commercial and
industrial
|
9
|
|
21.3
|
|
11
|
|
1.3
|
|
3
|
|
14.5
|
|
9
|
|
7.3
|
|
6
|
|
0.9
|
|
Total 30 to 59 days
past due
|
70
|
|
61.6
|
|
79
|
|
44.6
|
|
75
|
|
44.0
|
|
89
|
|
50.8
|
|
103
|
|
36.2
|
|
60 to 89 days past
due:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
18
|
|
1.9
|
|
18
|
|
2.3
|
|
22
|
|
5.0
|
|
26
|
|
3.1
|
|
28
|
|
5.2
|
|
Construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Multi-family
|
2
|
|
3.0
|
|
4
|
|
8.2
|
|
4
|
|
10.2
|
|
1
|
|
3.4
|
|
—
|
|
—
|
|
Commercial real
estate
|
1
|
|
1.7
|
|
1
|
|
0.3
|
|
—
|
|
—
|
|
2
|
|
2.6
|
|
5
|
|
2.3
|
|
Commercial and
industrial
|
2
|
|
0.1
|
|
1
|
|
0.2
|
|
1
|
|
—
|
|
1
|
|
0.2
|
|
8
|
|
3.1
|
|
Total 60 to 89 days
past due
|
23
|
|
6.7
|
|
24
|
|
11.0
|
|
27
|
|
15.2
|
|
30
|
|
9.3
|
|
41
|
|
10.6
|
|
Total accruing past
due loans
|
93
|
|
$
68.3
|
|
103
|
|
$
55.6
|
|
102
|
|
$
59.2
|
|
119
|
|
$
60.1
|
|
144
|
|
$
46.8
|
|
Non-accrual:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
216
|
|
$
38.3
|
|
231
|
|
$
43.5
|
|
232
|
|
$
42.8
|
|
239
|
|
$
45.7
|
|
246
|
|
$
46.4
|
|
Construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Multi-family
|
13
|
|
55.3
|
|
15
|
|
19.9
|
|
11
|
|
16.6
|
|
13
|
|
19.2
|
|
15
|
|
35.6
|
|
Commercial real
estate
|
19
|
|
8.3
|
|
22
|
|
9.8
|
|
24
|
|
13.0
|
|
25
|
|
14.0
|
|
29
|
|
15.9
|
|
Commercial and
industrial
|
15
|
|
3.3
|
|
16
|
|
3.3
|
|
13
|
|
5.2
|
|
15
|
|
4.4
|
|
21
|
|
9.2
|
|
Total non-accrual
loans
|
263
|
|
$
105.2
|
|
284
|
|
$
76.5
|
|
280
|
|
$
77.6
|
|
292
|
|
$
83.3
|
|
311
|
|
$
107.1
|
|
Accruing troubled debt
restructured loans
|
44
|
|
$
7.6
|
|
47
|
|
$
8.1
|
|
49
|
|
$
9.3
|
|
45
|
|
$
9.1
|
|
47
|
|
$
9.2
|
|
Non-accrual loans to
total loans
|
|
|
0.47 %
|
|
|
|
0.35 %
|
|
|
|
0.36 %
|
|
|
|
0.40 %
|
|
|
|
0.51 %
|
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
|
228.82 %
|
|
|
|
344.61 %
|
|
|
|
348.05 %
|
|
|
|
340.60 %
|
|
|
|
264.17 %
|
|
Allowance for loan
losses as a percent of total loans
|
|
|
1.07 %
|
|
|
|
1.20 %
|
|
|
|
1.26 %
|
|
|
|
1.36 %
|
|
|
|
1.36 %
|
Balance Sheet Summary
Total assets increased $1.78
billion, or 6.9%, to $27.81
billion at December 31, 2021 from $26.02 billion December 31, 2020. Cash and
cash equivalents increased $117.6
million to $288.0 million at
December 31, 2021. Net loans increased $1.76 billion, or 8.6%, to $22.34 billion at December 31, 2021.
Securities decreased $46.8 million,
or 1.2%, to $4.00 billion at
December 31, 2021.
The detail of the loan portfolio is below:
|
December 31,
2021
|
|
September 30,
2021
|
|
December 31,
2020
|
|
(In
thousands)
|
|
Commercial
Loans:
|
|
|
|
|
|
|
Multi-family
loans
|
$
7,865,592
|
|
7,655,135
|
|
7,122,840
|
|
Commercial real estate
loans
|
5,371,758
|
|
5,135,123
|
|
4,947,212
|
|
Commercial and
industrial loans
|
4,113,792
|
|
3,933,926
|
|
3,575,641
|
|
Construction
loans
|
550,950
|
|
509,620
|
|
404,367
|
|
Total commercial
loans
|
17,902,092
|
|
17,233,804
|
|
16,050,060
|
|
Residential mortgage
loans
|
3,929,170
|
|
3,930,683
|
|
4,119,894
|
|
Consumer and
other
|
766,785
|
|
740,827
|
|
702,801
|
|
Total
loans
|
22,598,047
|
|
21,905,314
|
|
20,872,755
|
|
Deferred fees,
premiums and other, net
|
(14,754)
|
|
(17,071)
|
|
(9,318)
|
|
Allowance for loan
losses
|
(240,681)
|
|
(263,515)
|
|
(282,986)
|
|
Net loans
|
$
22,342,612
|
|
21,624,728
|
|
20,580,451
|
During the year ended December 31, 2021, we originated
$2.43 billion in multi-family loans,
$1.27 billion in residential loans,
$1.26 billion in commercial and
industrial loans, $1.24 billion in
commercial real estate loans, $170.6
million in construction loans and $118.2 million in consumer and other loans. In
addition, we acquired $219 million of
loans from Berkshire Bank. Our loans are primarily on properties
and businesses located in New
Jersey and New York.
In addition to the loans originated for our portfolio, we
originated residential mortgage loans for sale to third parties
totaling $145.0 million during the
year ended December 31, 2021. As of December 31,
2021, loans held for sale were $809,000.
The allowance for loan losses decreased by $42.3 million to $240.7
million at December 31, 2021 from $283.0 million at December 31, 2020. The
decrease reflects a negative provision for loan losses of
$43.8 million, partially offset by an
increase of $541,000 resulting from
net recoveries and an increase of approximately $1.0 million from the initial allowance on loans
identified as PCD which were acquired from Berkshire Bank. Our
allowance for loan losses and related provision were affected by
the improving current and forecasted economic conditions and
commercial real estate prices. 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 current and forecasted economic conditions over the life of
our loans. At December 31, 2021, our allowance for loan
losses as a percent of total loans was 1.07%, a decrease from 1.36%
at December 31, 2020 which was driven by the factors noted
above.
Securities decreased by $46.8
million, or 1.2%, to $4.00
billion at December 31, 2021 from $4.04 billion at December 31,
2020. This decrease was primarily a result of paydowns and
sales, partially offset by purchases.
Deposits increased by $1.30
billion, or 6.7%, to $20.82
billion at December 31, 2021 from $19.53 billion at December 31, 2020
primarily driven by an increase in checking account deposits,
partially offset by decreases in time deposits and money market
deposits. Checking account deposits increased $2.22 billion to $11.93
billion at December 31, 2021 from $9.71 billion at December 31,
2020. Core deposits (savings, checking and money market)
represented approximately 90% of our total deposit portfolio at
December 31, 2021 compared to 86% at December 31, 2020.
Non interest checking increased $995.2
million, or 27.2% to $4.66
billion for the year ended December 31, 2021
Borrowed funds increased by $239.2
million, or 7.3%, to $3.54
billion at December 31, 2021 from $3.30 billion at December 31, 2020 to
support balance sheet growth.
Stockholders' equity increased by $228.4
million to $2.94 billion at
December 31, 2021 from $2.71
billion at December 31, 2020, primarily attributable to
net income of $313.3 million,
share-based plan activity of $32.1
million and other comprehensive income of $33.7 million for the year ended
December 31, 2021. These increases were partially offset
by cash dividends of $0.56 per share
totaling $138.6 million and the
repurchase of approximately 1.0 million shares of common stock for
$12.1 million during the year ended
December 31, 2021. The Company remains above the FDIC's
"well capitalized" standards, with a Common Equity Tier 1
Risk-Based Ratio of 12.83% at December 31, 2021.
About the Company
Investors Bancorp, Inc. is the holding company for Investors
Bank, which as of December 31, 2021 operated from its
corporate headquarters in Short Hills,
New Jersey and 154 branches located throughout New Jersey, New
York and Pennsylvania.
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, failure
to consummate the transaction with Citizens Financial Group, Inc.
for any reason, including the failure to obtain necessary
regulatory approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the
combined company), failure to obtain shareholder approval or
failure to satisfy any of the other closing conditions in a timely
basis or at all; the diversion of management's time from ongoing
business operations due to issues relating to the transaction with
Citizens Financial Group, Inc., the occurrence of any event, change
or other circumstances that could give rise to the right of one or
both of the parties to terminate the merger agreement between the
Company and Citizens Financial Group, Inc., the outcome of any
legal proceedings that may be instituted against Citizens Financial
Group, Inc. or the Company, potential adverse reactions or changes
to business or employee relationships, including those resulting
from the announcement or completion of the transaction,
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. Further, given its ongoing and
dynamic nature, it is difficult to predict what the continuing
effects of the COVID-19 pandemic will have on our business and
results of operations. The pandemic and related local and national
economic disruption may, among other effects, continue to result in
a material adverse change for the demand for our products and
services; increased levels of loan delinquencies, problem assets
and foreclosures; branch disruptions, unavailability of personnel
and increased cybersecurity risks as employees work remotely.
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.
|
INVESTORS
BANCORP, INC. AND SUBSIDIARY
|
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December 31,
2020
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
Assets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
287,990
|
|
670,295
|
|
170,432
|
|
Equity
securities
|
8,194
|
|
7,673
|
|
36,000
|
|
Debt securities
available-for-sale, at estimated fair value
|
2,393,540
|
|
2,531,573
|
|
2,758,437
|
|
Debt securities
held-to-maturity, net (estimated fair value of $1,651,504,
$1,336,957 and $1,320,872 at December 31, 2021, September 30, 2021
and December 31, 2020, respectively)
|
1,593,785
|
|
1,272,683
|
|
1,247,853
|
|
Loans receivable,
net
|
22,342,612
|
|
21,624,728
|
|
20,580,451
|
|
Loans
held-for-sale
|
809
|
|
397
|
|
30,357
|
|
Federal Home Loan
Bank stock
|
176,480
|
|
177,058
|
|
159,829
|
|
Accrued interest
receivable
|
78,636
|
|
81,549
|
|
79,705
|
|
Other real estate
owned and other repossessed assets
|
2,882
|
|
5,849
|
|
7,115
|
|
Office properties and
equipment, net
|
129,288
|
|
132,259
|
|
139,663
|
|
Operating lease
right-of-use assets
|
199,603
|
|
203,522
|
|
199,981
|
|
Net deferred tax
asset
|
87,251
|
|
109,588
|
|
116,805
|
|
Bank owned life
insurance
|
229,358
|
|
227,822
|
|
223,714
|
|
Goodwill and
intangible assets
|
131,993
|
|
133,237
|
|
109,633
|
|
Other
assets
|
144,197
|
|
139,561
|
|
163,184
|
|
Total
assets
|
$
27,806,618
|
|
27,317,794
|
|
26,023,159
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Deposits
|
$
20,824,638
|
|
20,400,424
|
|
19,525,419
|
|
Borrowed
funds
|
3,535,038
|
|
3,534,536
|
|
3,295,790
|
|
Advance payments by
borrowers for taxes and insurance
|
137,438
|
|
152,407
|
|
115,729
|
|
Operating lease
liabilities
|
212,678
|
|
216,374
|
|
212,559
|
|
Other
liabilities
|
158,398
|
|
161,494
|
|
163,659
|
|
Total
liabilities
|
24,868,190
|
|
24,465,235
|
|
23,313,156
|
|
Stockholders'
equity
|
2,938,428
|
|
2,852,559
|
|
2,710,003
|
|
Total liabilities and
stockholders' equity
|
$
27,806,618
|
|
27,317,794
|
|
26,023,159
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
|
|
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
Interest and dividend
income:
|
|
|
|
|
|
|
|
|
|
|
Loans receivable and
loans held-for-sale
|
$
214,709
|
|
211,189
|
|
213,928
|
|
836,171
|
|
871,411
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
GSE
obligations
|
571
|
|
567
|
|
523
|
|
2,237
|
|
1,517
|
|
|
Mortgage-backed
securities
|
13,800
|
|
13,321
|
|
16,674
|
|
56,539
|
|
77,925
|
|
|
Equity
|
64
|
|
65
|
|
252
|
|
458
|
|
362
|
|
|
Municipal bonds and
other debt
|
3,443
|
|
3,601
|
|
3,552
|
|
14,039
|
|
13,480
|
|
Interest-bearing
deposits
|
281
|
|
268
|
|
93
|
|
648
|
|
1,460
|
|
Federal Home Loan
Bank stock
|
2,130
|
|
2,234
|
|
2,858
|
|
8,546
|
|
14,739
|
|
|
Total interest and
dividend income
|
234,998
|
|
231,245
|
|
237,880
|
|
918,638
|
|
980,894
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
15,036
|
|
15,683
|
|
29,310
|
|
67,905
|
|
155,589
|
|
Borrowed
funds
|
18,994
|
|
20,960
|
|
19,776
|
|
79,718
|
|
99,619
|
|
|
Total interest
expense
|
34,030
|
|
36,643
|
|
49,086
|
|
147,623
|
|
255,208
|
|
|
Net interest
income
|
200,968
|
|
194,602
|
|
188,794
|
|
771,015
|
|
725,686
|
|
Provision for credit
losses
|
(22,999)
|
|
(13,015)
|
|
(2,682)
|
|
(48,676)
|
|
70,158
|
|
|
Net interest income
after provision for credit losses
|
223,967
|
|
207,617
|
|
191,476
|
|
819,691
|
|
655,528
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
Fees and service
charges
|
6,143
|
|
5,196
|
|
4,935
|
|
22,080
|
|
17,916
|
|
Income on bank owned
life insurance
|
1,536
|
|
1,508
|
|
1,579
|
|
6,548
|
|
6,638
|
|
Gain on loans,
net
|
92
|
|
1,698
|
|
5,538
|
|
6,911
|
|
16,226
|
|
Gain (loss) on
securities, net
|
503
|
|
(931)
|
|
157
|
|
506
|
|
406
|
|
Gain on sale of other
real estate owned, net
|
—
|
|
34
|
|
270
|
|
86
|
|
1,054
|
|
Gain on
sale-leaseback transactions
|
—
|
|
—
|
|
23,129
|
|
—
|
|
23,129
|
|
Other
income
|
7,160
|
|
8,447
|
|
10,184
|
|
28,332
|
|
25,149
|
|
|
Total non-interest
income
|
15,434
|
|
15,952
|
|
45,792
|
|
64,463
|
|
90,518
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
fringe benefits
|
61,022
|
|
60,231
|
|
64,891
|
|
245,065
|
|
240,970
|
|
Advertising and
promotional expense
|
4,346
|
|
3,111
|
|
2,645
|
|
12,083
|
|
9,551
|
|
Office occupancy and
equipment expense
|
18,105
|
|
23,535
|
|
28,451
|
|
76,788
|
|
77,754
|
|
Federal insurance
premiums
|
2,800
|
|
2,950
|
|
3,550
|
|
12,350
|
|
14,276
|
|
General and
administrative
|
624
|
|
706
|
|
455
|
|
2,254
|
|
2,133
|
|
Professional
fees
|
5,586
|
|
12,925
|
|
3,834
|
|
26,483
|
|
16,220
|
|
Data processing and
communication
|
9,729
|
|
9,985
|
|
9,004
|
|
39,042
|
|
35,702
|
|
Debt
extinguishment
|
—
|
|
10,159
|
|
22,807
|
|
10,159
|
|
24,098
|
|
Other operating
expenses
|
8,703
|
|
8,424
|
|
7,230
|
|
31,517
|
|
28,801
|
|
|
Total non-interest
expenses
|
110,915
|
|
132,026
|
|
142,867
|
|
455,741
|
|
449,505
|
|
|
Income before income
tax expense
|
128,486
|
|
91,543
|
|
94,401
|
|
428,413
|
|
296,541
|
|
Income tax
expense
|
34,169
|
|
24,609
|
|
19,256
|
|
115,080
|
|
74,961
|
|
|
Net income
|
$
94,317
|
|
66,934
|
|
75,145
|
|
313,333
|
|
221,580
|
|
Basic earnings per
share
|
$0.40
|
|
0.28
|
|
0.32
|
|
1.33
|
|
0.94
|
|
Diluted earnings per
share
|
$0.40
|
|
0.28
|
|
0.32
|
|
1.33
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
235,935,642
|
|
235,602,277
|
|
236,679,655
|
|
235,315,487
|
|
235,761,457
|
|
Diluted weighted
average shares outstanding
|
237,415,493
|
|
236,413,268
|
|
236,757,361
|
|
236,436,081
|
|
235,838,808
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
For the Three
Months Ended
|
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
December 31,
2020
|
|
|
|
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
|
$
858,964
|
281
|
0.13 %
|
|
$
844,365
|
268
|
0.13 %
|
|
$
454,986
|
93
|
0.08 %
|
|
Equity
securities
|
7,758
|
64
|
3.30 %
|
|
8,747
|
65
|
2.97 %
|
|
25,915
|
252
|
3.89 %
|
|
Debt securities
available-for-sale
|
2,439,916
|
9,098
|
1.49 %
|
|
2,501,016
|
9,683
|
1.55 %
|
|
2,717,128
|
12,502
|
1.84 %
|
|
Debt securities
held-to-maturity
|
1,449,625
|
8,716
|
2.41 %
|
|
1,174,563
|
7,806
|
2.66 %
|
|
1,264,286
|
8,247
|
2.61 %
|
|
Net loans
|
21,829,427
|
214,709
|
3.93 %
|
|
21,284,262
|
211,189
|
3.97 %
|
|
20,695,149
|
213,928
|
4.13 %
|
|
Federal Home Loan
Bank stock
|
175,525
|
2,130
|
4.85 %
|
|
192,111
|
2,234
|
4.65 %
|
|
175,097
|
2,858
|
6.53 %
|
|
Total interest-earning
assets
|
26,761,215
|
234,998
|
3.51 %
|
|
26,005,064
|
231,245
|
3.56 %
|
|
25,332,561
|
237,880
|
3.76 %
|
|
Non-interest earning
assets
|
1,122,901
|
|
|
|
1,151,571
|
|
|
|
1,144,838
|
|
|
|
Total
assets
|
|
$
27,884,116
|
|
|
|
$
27,156,635
|
|
|
|
$
26,477,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
2,043,716
|
1,326
|
0.26 %
|
|
$
2,060,893
|
1,381
|
0.27 %
|
|
$
2,039,954
|
2,551
|
0.50 %
|
|
Interest-bearing
checking
|
7,331,456
|
7,090
|
0.39 %
|
|
6,658,248
|
6,833
|
0.41 %
|
|
6,117,420
|
7,823
|
0.51 %
|
|
Money market
accounts
|
4,785,618
|
4,371
|
0.37 %
|
|
4,613,066
|
4,475
|
0.39 %
|
|
4,949,313
|
9,944
|
0.80 %
|
|
Certificates of
deposit
|
2,214,590
|
2,249
|
0.41 %
|
|
2,299,850
|
2,994
|
0.52 %
|
|
3,035,484
|
8,992
|
1.18 %
|
|
Total
interest-bearing deposits
|
16,375,380
|
15,036
|
0.37 %
|
|
15,632,057
|
15,683
|
0.40 %
|
|
16,142,171
|
29,310
|
0.73 %
|
|
Borrowed
funds
|
3,498,840
|
18,994
|
2.17 %
|
|
3,863,460
|
20,960
|
2.17 %
|
|
3,470,338
|
19,776
|
2.28 %
|
|
Total interest-bearing
liabilities
|
19,874,220
|
34,030
|
0.68 %
|
|
19,495,517
|
36,643
|
0.75 %
|
|
19,612,509
|
49,086
|
1.00 %
|
|
Non-interest-bearing
liabilities
|
5,118,684
|
|
|
|
4,827,551
|
|
|
|
4,164,206
|
|
|
|
Total
liabilities
|
24,992,904
|
|
|
|
24,323,068
|
|
|
|
23,776,715
|
|
|
|
Stockholders'
equity
|
2,891,212
|
|
|
|
2,833,567
|
|
|
|
2,700,684
|
|
|
|
Total liabilities and
stockholders' equity
|
$
27,884,116
|
|
|
|
$
27,156,635
|
|
|
|
$
26,477,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 200,968
|
|
|
|
$ 194,602
|
|
|
|
$ 188,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.83 %
|
|
|
|
2.81 %
|
|
|
|
2.76 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
6,886,995
|
|
|
|
$
6,509,547
|
|
|
|
$
5,720,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.00 %
|
|
|
|
2.99 %
|
|
|
|
2.98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total interest-bearing
liabilities
|
1.35
|
X
|
|
|
1.33
|
X
|
|
|
1.29
|
X
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
|
For the Year
Ended
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
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
|
$
587,691
|
648
|
0.11 %
|
|
$
773,177
|
1,460
|
0.19 %
|
|
Equity
securities
|
16,222
|
458
|
2.82 %
|
|
11,365
|
362
|
3.19 %
|
|
Debt securities
available-for-sale
|
2,543,274
|
40,636
|
1.60 %
|
|
2,672,537
|
58,873
|
2.20 %
|
|
Debt securities
held-to-maturity
|
1,254,917
|
32,179
|
2.56 %
|
|
1,184,984
|
34,049
|
2.87 %
|
|
Net loans
|
21,099,992
|
836,171
|
3.96 %
|
|
21,040,964
|
871,411
|
4.14 %
|
|
Federal Home Loan
Bank stock
|
183,001
|
8,546
|
4.67 %
|
|
229,120
|
14,739
|
6.43 %
|
|
|
Total
interest-earning assets
|
25,685,097
|
918,638
|
3.58 %
|
|
25,912,147
|
980,894
|
3.79 %
|
|
Non-interest earning
assets
|
1,133,861
|
|
|
|
1,096,400
|
|
|
|
|
Total
assets
|
$
26,818,958
|
|
|
|
$
27,008,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Savings
|
$
2,032,004
|
5,591
|
0.28 %
|
|
$
2,039,686
|
12,056
|
0.59 %
|
|
Interest-bearing
checking
|
6,581,074
|
27,488
|
0.42 %
|
|
5,869,801
|
42,014
|
0.72 %
|
|
Money market
accounts
|
4,615,127
|
20,508
|
0.44 %
|
|
4,367,498
|
42,568
|
0.97 %
|
|
Certificates of
deposit
|
2,359,645
|
14,318
|
0.61 %
|
|
3,819,029
|
58,951
|
1.54 %
|
|
Total interest
bearing deposits
|
15,587,850
|
67,905
|
0.44 %
|
|
16,096,014
|
155,589
|
0.97 %
|
|
Borrowed
funds
|
3,704,903
|
79,718
|
2.15 %
|
|
4,665,094
|
99,619
|
2.14 %
|
|
|
Total
interest-bearing liabilities
|
19,292,753
|
147,623
|
0.77 %
|
|
20,761,108
|
255,208
|
1.23 %
|
|
Non-interest-bearing
liabilities
|
4,711,391
|
|
|
|
3,594,290
|
|
|
|
|
Total
liabilities
|
24,004,144
|
|
|
|
24,355,398
|
|
|
|
Stockholders'
equity
|
2,814,814
|
|
|
|
2,653,149
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
26,818,958
|
|
|
|
$
27,008,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
771,015
|
|
|
|
$
725,686
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.81 %
|
|
|
|
2.56 %
|
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
6,392,344
|
|
|
|
$
5,151,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
3.00 %
|
|
|
|
2.80 %
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total interest-bearing
liabilities
|
1.33
|
X
|
|
|
1.25
|
X
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
|
Selected Performance
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
December
31,
2021
|
|
December
31,
2020
|
|
Return on average
assets
|
1.35 %
|
|
0.99 %
|
|
1.14 %
|
|
1.17 %
|
|
0.82 %
|
|
Return on average
equity
|
13.05 %
|
|
9.45 %
|
|
11.13 %
|
|
11.13 %
|
|
8.35 %
|
|
Return on average
tangible equity
|
13.68 %
|
|
9.86 %
|
|
11.60 %
|
|
11.62 %
|
|
8.70 %
|
|
Interest rate
spread
|
2.83 %
|
|
2.81 %
|
|
2.76 %
|
|
2.81 %
|
|
2.56 %
|
|
Net interest
margin
|
3.00 %
|
|
2.99 %
|
|
2.98 %
|
|
3.00 %
|
|
2.80 %
|
|
Efficiency
ratio
|
51.25 %
|
|
62.70 %
|
|
60.90 %
|
|
54.55 %
|
|
55.07 %
|
|
Non-interest expense
to average total assets
|
1.59 %
|
|
1.94 %
|
|
2.16 %
|
|
1.70 %
|
|
1.66 %
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
1.35
|
|
1.33
|
|
1.29
|
|
1.33
|
|
1.25
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
|
Selected Financial
Ratios and Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
2021
|
|
September
30,
2021
|
|
December
31,
2020
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a percent of total assets
|
|
0.42 %
|
|
0.33 %
|
|
0.47 %
|
|
|
|
Non-performing loans
as a percent of total loans
|
|
0.50 %
|
|
0.39 %
|
|
0.56 %
|
|
|
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
228.82 %
|
|
344.61 %
|
|
264.17 %
|
|
|
|
Allowance for loan
losses as a percent of total loans
|
|
1.07 %
|
|
1.20 %
|
|
1.36 %
|
|
|
|
Allowance for credit
losses as a percent of total loans (1)
|
|
1.13 %
|
|
1.28 %
|
|
1.44 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio
(2)
|
|
|
10.19 %
|
|
10.24 %
|
|
10.14 %
|
|
|
|
Common equity tier 1
risk-based (2)
|
|
|
12.83 %
|
|
12.83 %
|
|
13.07 %
|
|
|
|
Tier 1 Risk-Based
Capital (2)
|
|
|
12.83 %
|
|
12.83 %
|
|
13.07 %
|
|
|
|
Total Risk-Based
Capital (2)
|
|
|
14.00 %
|
|
14.11 %
|
|
14.39 %
|
|
|
|
Equity to total
assets (period end)
|
|
|
10.57 %
|
|
10.44 %
|
|
10.41 %
|
|
|
|
Average equity to
average assets
|
|
|
10.37 %
|
|
10.43 %
|
|
10.20 %
|
|
|
|
Tangible capital to
tangible assets (3)
|
|
|
10.14 %
|
|
10.00 %
|
|
10.03 %
|
|
|
|
Book value per common
share (3)
|
|
|
$
12.36
|
|
$
12.03
|
|
$
11.43
|
|
|
|
Tangible book value
per common share (3)
|
|
|
$
11.81
|
|
$
11.47
|
|
$
10.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
|
Number of full
service offices
|
|
|
154
|
|
154
|
|
156
|
|
|
|
Full time equivalent
employees
|
|
|
1,643
|
|
1,707
|
|
1,806
|
|
|
|
|
|
|
|
|
(1) Allowance for
credit losses includes allowance for loan losses and allowance for
losses on unfunded commitments.
|
|
(2) Capital ratios as
of December 31, 2021 are estimated. In accordance with regulatory
capital rules, the Company elected an option to delay the estimated
impact of CECL on its regulatory capital over a five-year
transition period ending December 31, 2024. As a result, capital
ratios as of December 31, 2021, September 30, 2021 and December 31,
2020 exclude the impact of the increased allowance for credit
losses on loans, unfunded commitments and held-to-maturity debt
securities attributed to the adoption of CECL.
|
|
(3) 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
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
2,938,428
|
|
2,852,559
|
|
2,710,003
|
|
Goodwill and
intangible assets
|
131,993
|
|
133,237
|
|
109,633
|
|
Tangible
stockholders' equity
|
$
2,806,435
|
|
2,719,322
|
|
2,600,370
|
|
|
|
|
|
|
|
Book Value per
Share Computation
|
|
|
|
|
|
|
Common stock
issued
|
361,869,872
|
|
361,869,872
|
|
361,869,872
|
|
Treasury
shares
|
(113,872,606)
|
|
(114,184,985)
|
|
(113,940,656)
|
|
Shares
outstanding
|
247,997,266
|
|
247,684,887
|
|
247,929,216
|
|
Unallocated ESOP
shares
|
(10,347,370)
|
|
(10,539,779)
|
|
(10,895,052)
|
|
Book value
shares
|
237,649,896
|
|
237,145,108
|
|
237,034,164
|
|
|
|
|
|
|
|
Book Value per
Share
|
$
12.36
|
|
$
12.03
|
|
$
11.43
|
|
Tangible Book
Value per Share
|
$
11.81
|
|
$
11.47
|
|
$
10.97
|
|
|
|
|
|
|
|
Total
assets
|
$
27,806,618
|
|
27,317,794
|
|
26,023,159
|
|
Goodwill and
intangible assets
|
131,993
|
|
133,237
|
|
109,633
|
|
Tangible
assets
|
$
27,674,625
|
|
27,184,557
|
|
25,913,526
|
|
|
|
|
|
|
|
Tangible capital
to tangible assets
|
10.14 %
|
|
10.00 %
|
|
10.03 %
|
Contact: Marianne Wade
(973) 924-5100
investorrelations@investorsbank.com
View original
content:https://www.prnewswire.com/news-releases/investors-bancorp-inc-announces-fourth-quarter-financial-results-and-cash-dividend-301469086.html
SOURCE Investors Bancorp, Inc.