SHORT HILLS, N.J.,
April 28, 2021 /PRNewswire/ -- Investors Bancorp, Inc.
(NASDAQ:ISBC) ("Company"), the holding company for Investors Bank
("Bank"), reported net income of $72.3
million, or $0.31 per
diluted share, for the three months ended March 31, 2021 as
compared to $75.1 million, or
$0.32 per diluted share, for the
three months ended December 31, 2020 and $39.5 million, or $0.17 per diluted share, for the three months
ended March 31, 2020.
The Company also announced today that its Board of Directors
declared a cash dividend of $0.14 per
share to be paid on May 25, 2021 for
stockholders of record as of May 10,
2021.
Kevin Cummings, Chairman and CEO,
commented, "Our pre-tax earnings for the first quarter were a
record high as our credit quality is strong and our cost of
deposits continues to decline. Our return on assets and return on
equity for the first quarter were 1.11% and 11%, respectively."
Mr. Cummings also commented, "We remain cautiously optimistic on
credit as our deferred loan balances continue to be stable and our
non-accrual loans have decreased to 0.40% of total loans."
Performance Highlights
- Return on average assets and return on average equity were
1.11% and 11%, respectively, for
the three months ended March 31,
2021.
- Net interest margin decreased 8 basis points to 2.90% for the
three months ended March 31, 2021
compared to the three months ended December
31, 2020 as a result of a decline in prepayment penalties. Net
interest margin excluding prepayment penalties increased 2 basis
points.
- Provision for credit losses was negative $3.0 million for the three months ended
March 31, 2021 compared with negative
$2.7 million for the three months
ended December 31, 2020. The Company
recorded net recoveries of $1.7
million during the quarter ended March 31, 2021 compared to net recoveries of
$2.1 million during the quarter ended
December 31, 2020. The allowance for
loan losses as a percent of total loans was 1.36% at March 31, 2021 consistent with December 31, 2020.
- Total non-interest income was $20.0
million for the three months ended March 31, 2021, a decrease of $25.8 million compared to the three months ended
December 31, 2020. Total non-interest
income for the three months ended December
31, 2020 included $23.1
million of gains from sale-leaseback transactions. Total
non-interest income decreased $2.7
million compared to the three months ended December 31, 2020 excluding the sale-leaseback
gains and increased $5.3 million
compared to the three months ended March 31,
2020.
- Total non-interest expenses were $104.4
million for the three months ended March 31, 2021, a decrease of $38.5 million compared to the three months ended
December 31, 2020. Total non-interest
expenses for the three months ended December
31, 2020 included $22.8
million of costs from the early extinguishment of wholesale
funding and $11.7 million of costs
associated with the Company's branch rationalization announcement
in December 2020. Excluding these
items, non-interest expenses for the three months ended
March 31, 2021 decreased $4.0 million compared to the three months ended
December 31, 2020.
- Non-interest-bearing deposits increased $174.2 million, or 4.8%, during the three months
ended March 31, 2021. The cost of
interest-bearing deposits decreased 19 basis points to 0.54% for
the three months ended March 31, 2021
compared to the three months ended December
31, 2020.
- C&I loans increased $66.5
million, or 1.9%, during the three months ended March 31, 2021.
- As of March 31, 2021, COVID-19
related loan deferrals totaled $693
million, or 3.3% of loans, compared to $756 million, or 3.6% of loans, as of
February 14, 2021. Approximately 72%
of loan deferral borrowers are making interest payments.
- Non-accrual loans decreased to $83.3
million, or 0.40% of total loans, at March 31, 2021 as compared to $107.1 million, or 0.51% of total loans, at
December 31, 2020 and $98.4 million, or 0.46% of total loans, at
March 31, 2020.
- Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1
Risk-Based and Total Risk-Based Capital Ratios were 10.43%, 13.33%,
13.33% and 14.65%, respectively, at March
31, 2021.
Financial Performance Overview
First Quarter 2021 compared to Fourth Quarter
2020
For the first quarter of 2021, net income totaled $72.3 million, a decrease of $2.9 million as compared to $75.1 million for the fourth quarter of
2020. The changes in net income on a sequential quarter basis
are highlighted below.
Net interest income decreased by $8.1
million, or 4.3%, as compared to the fourth quarter of
2020. Changes within interest income and expense categories
were as follows:
- Interest and dividend income decreased $17.3 million, or 7.3%, to $220.5 million as compared to the fourth quarter
of 2020, primarily attributed to the weighted average yield on net
loans which decreased 25 basis points to 3.88% including the impact
of a decline in prepayment penalties. In addition, the average
balance of net loans decreased $203.5
million, mainly as a result of paydowns and payoffs,
partially offset by loan originations.
- Prepayment penalties, which are included in interest income,
totaled $2.3 million for the three
months ended March 31, 2021 as
compared to $9.2 million for the
three months ended December 31,
2020.
- Interest expense decreased $9.3
million, primarily attributed to the weighted average cost
of interest-bearing liabilities which decreased 16 basis points to
0.84% for the three months ended March 31,
2021. In addition, the average balance of interest-bearing
deposits decreased $517.5 million, or
3.2%, to $15.62 billion for the three
months ended March 31, 2021 and the
average balance of total borrowed funds decreased $35.1 million, or 1.0%, to $3.44 billion for the three months ended
March 31, 2021.
Net interest margin decreased 8 basis points to 2.90% for the
three months ended March 31, 2021 compared to the three months
ended December 31, 2020, driven primarily by the decrease in
prepayment penalties, partially
offset by the lower cost of interest-bearing liabilities.
Excluding prepayment penalties, net interest margin increased 2
basis points for the three months ended March 31, 2021.
Total non-interest income was $20.0
million for the three months ended March 31, 2021, a
decrease of $25.8 million, as
compared to $45.8 million for the
fourth quarter of 2020. The decrease in non-interest income
was due primarily to a gain of $23.1
million on the sale-leaseback of 15 branch locations and one
corporate location during the three months ended December 31, 2020 and a
$2.6 million decline in customer swap
fee income.
Total non-interest expenses were $104.4
million for the three months ended March 31, 2021, a
decrease of $38.5 million compared to
the three months ended December 31, 2020. Total
non-interest expenses for the three months ended December 31,
2020 included $22.8 million of costs
from the early extinguishment of wholesale funding and $11.7 million of costs associated with the
Company's branch rationalization announcement in December
2020. Excluding these items, non-interest expenses for the
three months ended March 31, 2021 decreased $4.0 million compared to the three months ended
December 31, 2020. The decrease was primarily driven by
incentive compensation.
Income tax expense was $27.1
million for the three months ended March 31, 2021 and
$19.3 million for the three months
ended December 31, 2020. The effective tax rate was
27.3% for the three months ended March 31, 2021 and 20.4% for
the three months ended December 31, 2020. The effective
tax rate in the fourth quarter of 2020 was positively impacted by
tax credit investments, as well as state income apportionment.
First Quarter 2021 compared to First Quarter
2020
For the first quarter of 2021, net income totaled $72.3 million, an increase of $32.8 million as compared to $39.5 million in the first quarter of 2020.
The changes in net income on a year over year quarter basis are
highlighted below.
On a year over year basis, first quarter of 2021 net interest
income increased by $7.5 million, or
4.3%, as compared to the first quarter of 2020 due to:
- Interest expense decreased $43.0
million, or 51.9%, primarily attributed to the weighted
average cost of interest-bearing liabilities, which decreased 74
basis points to 0.84% for the three months ended March 31, 2021. In addition, the average balance
of total borrowed funds decreased $2.25
billion, or 39.5%, to $3.44
billion, while the average balance of interest-bearing
deposits increased $288.3 million, or
1.9%, to $15.62 billion for the three
months ended March 31, 2021.
- Interest and dividend income decreased $35.6 million, or 13.9%, to $220.5 million, primarily attributed to the
weighted average yield on net loans which decreased 35 basis points
to 3.88%, including the impact of a decline in prepayment
penalties, and the weighted average yield on securities which
decreased 83 basis points to 2.00%. In addition, the average
balance of net loans decreased $735.7
million, mainly as a result of paydowns and payoffs, offset
by loan originations and $453.3
million of loans acquired from Gold Coast in April
2020.
- Prepayment penalties, which are included in interest income,
totaled $2.3 million for the three
months ended March 31, 2021 as
compared to $7.6 million for the
three months ended March 31,
2020.
Net interest margin increased 19 basis points year over year to
2.90% for the three months ended March 31, 2021 from 2.71% for
the three months ended March 31, 2020, driven primarily by the
lower cost of interest-bearing liabilities, partially offset by the
lower yields on interest-earnings assets and a decrease in
prepayment penalties. Excluding prepayment penalties, net
interest margin increased 27 basis points for the three months
ended March 31, 2021.
Total non-interest income was $20.0
million for the three months ended March 31, 2021, an
increase of $5.3 million year over
year. The increase in non-interest income was due primarily
to an increase of $2.0 million in
gain on loans due to a higher volume of mortgage banking loan sales
to third parties, an increase of $819,000 in customer swap fee income, an increase
of $757,000 in income from our wealth
and investment products and an increase of $610,000 in gains on our equipment finance
portfolio.
Total non-interest expenses were $104.4
million for the three months ended March 31, 2021, an
increase of $1.8 million compared to
the three months ended March 31, 2020.
Income tax expense was $27.1
million for the three months ended March 31, 2021 and
$14.6 million for the three months
ended March 31, 2020. The effective tax rate was 27.3%
for the three months ended March 31, 2021 and 27.0% for the
three months ended March 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 March 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 March 31, 2021, our provision for
credit losses was negative $3.0
million compared to negative $2.7
million for the three months ended December 31, 2020
and $31.2 million for the three
months ended March 31, 2020. Our provision was impacted
by net loan recoveries of $1.7
million for the three months ended March 31, 2021, net
loan recoveries of $2.1 million for
the three months ended December 31, 2020 and net loan
charge-offs of $8.0 million for the
three months ended March 31, 2020.
Total non-accrual loans were $83.3
million, or 0.40% of total loans, at March 31, 2021
compared to $107.1 million, or 0.51%
of total loans, at December 31, 2020 and $98.4 million, or 0.46% of total loans, at
March 31, 2020. We continue to proactively and
diligently work to resolve our troubled loans.
At March 31, 2021, there were $29.7
million of loans deemed as troubled debt restructured loans
("TDRs"), of which $24.4 million were
residential and consumer loans, $4.4
million were commercial real estate loans and $900,000 were commercial and industrial
loans. TDRs of $9.1 million
were classified as accruing and $20.6
million were classified as non-accrual at March 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.
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
March 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
|
62
|
|
|
$
|
13.2
|
|
|
84
|
|
|
$
|
18.5
|
|
|
78
|
|
|
$
|
17.2
|
|
|
79
|
|
|
$
|
19.9
|
|
|
106
|
|
|
$
|
24.6
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
10
|
|
|
19.2
|
|
|
5
|
|
|
7.3
|
|
|
5
|
|
|
5.3
|
|
|
9
|
|
|
24.6
|
|
|
10
|
|
|
57.9
|
|
Commercial real
estate
|
8
|
|
|
11.1
|
|
|
8
|
|
|
9.5
|
|
|
7
|
|
|
4.6
|
|
|
9
|
|
|
10.6
|
|
|
6
|
|
|
23.5
|
|
Commercial and
industrial
|
9
|
|
|
7.3
|
|
|
6
|
|
|
0.9
|
|
|
6
|
|
|
3.7
|
|
|
13
|
|
|
7.5
|
|
|
21
|
|
|
5.3
|
|
Total 30 to 59 days
past due
|
89
|
|
|
50.8
|
|
|
103
|
|
|
36.2
|
|
|
96
|
|
|
30.8
|
|
|
110
|
|
|
62.6
|
|
|
143
|
|
|
111.3
|
|
60 to 89 days past
due:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
26
|
|
|
3.1
|
|
|
28
|
|
|
5.2
|
|
|
20
|
|
|
4.8
|
|
|
30
|
|
|
7.5
|
|
|
32
|
|
|
7.5
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
1
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2.1
|
|
|
5
|
|
|
19.1
|
|
|
—
|
|
|
—
|
|
Commercial real
estate
|
2
|
|
|
2.6
|
|
|
5
|
|
|
2.3
|
|
|
5
|
|
|
26.3
|
|
|
8
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
Commercial and
industrial
|
1
|
|
|
0.2
|
|
|
8
|
|
|
3.1
|
|
|
6
|
|
|
2.2
|
|
|
5
|
|
|
1.2
|
|
|
4
|
|
|
5.2
|
|
Total 60 to 89 days
past due
|
30
|
|
|
9.3
|
|
|
41
|
|
|
10.6
|
|
|
33
|
|
|
35.4
|
|
|
48
|
|
|
31.1
|
|
|
36
|
|
|
12.7
|
|
Total accruing past
due loans
|
119
|
|
|
$
|
60.1
|
|
|
144
|
|
|
$
|
46.8
|
|
|
129
|
|
|
$
|
66.2
|
|
|
158
|
|
|
$
|
93.7
|
|
|
179
|
|
|
$
|
124.0
|
|
Non-accrual:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential and
consumer
|
239
|
|
|
$
|
45.7
|
|
|
246
|
|
|
$
|
46.4
|
|
|
250
|
|
|
$
|
52.2
|
|
|
255
|
|
|
$
|
50.6
|
|
|
258
|
|
|
$
|
46.6
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Multi-family
|
13
|
|
|
19.2
|
|
|
15
|
|
|
35.6
|
|
|
13
|
|
|
51.1
|
|
|
14
|
|
|
48.3
|
|
|
9
|
|
|
23.4
|
|
Commercial real
estate
|
25
|
|
|
14.0
|
|
|
29
|
|
|
15.9
|
|
|
28
|
|
|
17.8
|
|
|
22
|
|
|
12.3
|
|
|
21
|
|
|
11.4
|
|
Commercial and
industrial
|
15
|
|
|
4.4
|
|
|
21
|
|
|
9.2
|
|
|
19
|
|
|
10.9
|
|
|
29
|
|
|
15.6
|
|
|
22
|
|
|
17.0
|
|
Total non-accrual
loans
|
292
|
|
|
$
|
83.3
|
|
|
311
|
|
|
$
|
107.1
|
|
|
310
|
|
|
$
|
132.0
|
|
|
320
|
|
|
$
|
126.8
|
|
|
310
|
|
|
$
|
98.4
|
|
Accruing troubled debt
restructured loans
|
45
|
|
|
$
|
9.1
|
|
|
47
|
|
|
$
|
9.2
|
|
|
51
|
|
|
$
|
9.8
|
|
|
52
|
|
|
$
|
12.2
|
|
|
55
|
|
|
$
|
12.8
|
|
Non-accrual loans to
total loans
|
|
|
0.40
|
%
|
|
|
|
0.51
|
%
|
|
|
|
0.63
|
%
|
|
|
|
0.59
|
%
|
|
|
|
0.46
|
%
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
|
340.60
|
%
|
|
|
|
264.17
|
%
|
|
|
|
217.75
|
%
|
|
|
|
215.48
|
%
|
|
|
|
247.54
|
%
|
Allowance for loan
losses as a percent of total loans
|
|
|
1.36
|
%
|
|
|
|
1.36
|
%
|
|
|
|
1.37
|
%
|
|
|
|
1.28
|
%
|
|
|
|
1.14
|
%
|
Balance Sheet Summary
Total assets decreased $200.3
million, or 0.8%, to $25.82
billion at March 31, 2021 from December 31,
2020. Securities decreased $141.9
million, or 3.5%, to $3.90
billion at March 31, 2021. Net loans decreased
$7.8 million to $20.57 billion at March 31, 2021.
The detail of the loan portfolio is below:
|
March 31,
2021
|
|
December 31,
2020
|
|
(In
thousands)
|
Commercial
Loans:
|
|
|
|
Multi-family
loans
|
$
|
7,230,501
|
|
|
7,122,840
|
|
Commercial real estate
loans
|
4,997,364
|
|
|
4,947,212
|
|
Commercial and
industrial loans
|
3,642,178
|
|
|
3,575,641
|
|
Construction
loans
|
393,516
|
|
|
404,367
|
|
Total commercial
loans
|
16,263,559
|
|
|
16,050,060
|
|
Residential mortgage
loans
|
3,911,884
|
|
|
4,119,894
|
|
Consumer and
other
|
695,793
|
|
|
702,801
|
|
Total
loans
|
20,871,236
|
|
|
20,872,755
|
|
Deferred fees,
premiums and other, net
|
(14,815)
|
|
|
(9,318)
|
|
Allowance for loan
losses
|
(283,760)
|
|
|
(282,986)
|
|
Net loans
|
$
|
20,572,661
|
|
|
20,580,451
|
|
During the three months ended March 31, 2021, we originated
$384.5 million in multi-family loans,
$317.9 million in residential loans,
$249.6 million in commercial and
industrial loans, $157.1 million in
commercial real estate loans, $15.3
million in construction loans and $15.0 million in consumer and other loans.
Our originations reflect our continued focus on diversifying our
loan portfolio. 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 $142.6 million during the
three months ended March 31, 2021. As of March 31,
2021, loans held for sale were $1.4
million.
The allowance for loan losses increased by $774,000 to $283.8
million at March 31, 2021 from $283.0 million at December 31, 2020.
The increase reflects an increase of $1.7
million resulting from net recoveries, partially offset by a
negative provision for loan losses of $960,000. Our allowance for loan losses was
affected by the current and forecasted economic conditions.
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 March 31,
2021, our allowance for loan losses as a percent of total loans was
1.36%, consistent with December 31, 2020.
Securities decreased by $141.9
million, or 3.5%, to $3.90
billion at March 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 decreased by $534.4
million, or 2.7%, to $18.99
billion at March 31, 2021 from $19.53 billion at December 31, 2020
primarily driven by decreases in money market and time deposits,
offset by an increase in checking deposits. Checking accounts
increased $232.4 million to
$9.94 billion at March 31, 2021
from $9.71 billion at
December 31, 2020. Core deposits (savings, checking and
money market) represented approximately 87% of our total deposit
portfolio at March 31, 2021 compared to 86% at
December 31, 2020.
Borrowed funds increased by $262.5
million, or 8.0%, to $3.56
billion at March 31, 2021 from $3.30 billion at December 31, 2020 primarily
driven by the decrease in deposits.
Stockholders' equity increased by $60.5
million to $2.77 billion at
March 31, 2021 from $2.71
billion at December 31, 2020, primarily attributed to
net income of $72.3 million, other
comprehensive income of $23.5 million
and share-based plan activity of $7.0
million for the three months ended March 31,
2021. These increases were partially offset by cash dividends
of $0.14 per share totaling
$34.6 million and the repurchase of
664,276 shares of common stock for $7.6
million during the three months ended March 31,
2021. The Company remains above the FDIC's "well capitalized"
standards, with a Common Equity Tier 1 Risk-Based Ratio of 13.33%
at March 31, 2021.
About the Company
Investors Bancorp, Inc. is the holding company for Investors
Bank, which as of March 31, 2021 operated from its corporate
headquarters in Short Hills, New
Jersey and 156 branches located throughout New Jersey and New
York.
Earnings Conference Call April 29,
2021 at 11:00 a.m.
(ET)
The Company, as previously announced, will host an earnings
conference call on Thursday, April 29,
2021 at 11:00 a.m. (ET).
The toll-free dial-in number is: (866) 218-2404. Callers who
pre-register will bypass the live operator and may avoid any delays
in joining the conference call. Participants will immediately
receive an online confirmation, an email and a calendar invitation
for the event.
Conference Call Pre-registration link:
http://dpregister.com/10153436
A telephone replay will be available beginning on April 29, 2021 from 1:00
p.m. (ET) through 9:00 a.m.
(ET) on July 29, 2021.
The replay number is (877) 344-7529, password 10153436. The
conference call will also be simultaneously webcast on the
Company's website www.investorsbank.com and archived for one
year.
Forward Looking Statements
Certain statements contained herein are "forward looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of
1934. Such forward looking statements may be identified by
reference to a future period or periods, or by the use of forward
looking terminology, such as "may," "will," "believe," "expect,"
"estimate," "anticipate," "continue," or similar terms or
variations on those terms, or the negative of those terms.
Forward looking statements are subject to numerous risks and
uncertainties, as described in the "Risk Factors" disclosures
included in our Annual Report on Form 10-K, as supplemented in
quarterly reports on Form 10-Q, including, but not limited to,
those related to the real estate and economic environment,
particularly in the market areas in which the Company operates,
competitive products and pricing, fiscal and monetary policies of
the U.S. Government, changes in government regulations affecting
financial institutions, including regulatory fees and capital
requirements, changes in prevailing interest rates, acquisitions
and the integration of acquired businesses, credit risk management,
asset-liability management, the financial and securities markets
and the availability of and costs associated with sources of
liquidity. 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
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
(unaudited)
|
|
(audited)
|
Assets
|
(Dollars in
thousands)
|
|
|
|
|
Cash and cash
equivalents
|
$
|
173,273
|
|
|
170,432
|
|
Equity
securities
|
25,727
|
|
|
36,000
|
|
Debt securities
available-for-sale, at estimated fair value
|
2,682,938
|
|
|
2,758,437
|
|
Debt securities
held-to-maturity, net (estimated fair value of $1,243,268 and
$1,320,872 at March 31, 2021 and December 31, 2020,
respectively)
|
1,191,771
|
|
|
1,247,853
|
|
Loans receivable,
net
|
20,572,661
|
|
|
20,580,451
|
|
Loans
held-for-sale
|
1,378
|
|
|
30,357
|
|
Federal Home Loan
Bank stock
|
177,351
|
|
|
159,829
|
|
Accrued interest
receivable
|
81,567
|
|
|
79,705
|
|
Other real estate
owned and other repossessed assets
|
6,311
|
|
|
7,115
|
|
Office properties and
equipment, net
|
136,893
|
|
|
139,663
|
|
Operating lease
right-of-use assets
|
195,130
|
|
|
199,981
|
|
Net deferred tax
asset
|
101,993
|
|
|
116,805
|
|
Bank owned life
insurance
|
225,199
|
|
|
223,714
|
|
Goodwill and
intangible assets
|
110,180
|
|
|
109,633
|
|
Other
assets
|
140,517
|
|
|
163,184
|
|
Total
assets
|
$
|
25,822,889
|
|
|
26,023,159
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities:
|
|
|
|
Deposits
|
$
|
18,991,028
|
|
|
19,525,419
|
|
Borrowed
funds
|
3,558,324
|
|
|
3,295,790
|
|
Advance payments by
borrowers for taxes and insurance
|
140,949
|
|
|
115,729
|
|
Operating lease
liabilities
|
207,653
|
|
|
212,559
|
|
Other
liabilities
|
154,383
|
|
|
163,659
|
|
Total
liabilities
|
23,052,337
|
|
|
23,313,156
|
|
Stockholders'
equity
|
2,770,552
|
|
|
2,710,003
|
|
Total liabilities and
stockholders' equity
|
$
|
25,822,889
|
|
|
26,023,159
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
|
|
|
March 31,
2021
|
|
December
31, 2020
|
|
March 31,
2020
|
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data)
|
Interest and dividend
income:
|
|
|
|
|
|
|
Loans receivable and
loans held-for-sale
|
$
|
198,750
|
|
|
213,928
|
|
|
224,529
|
|
|
Securities:
|
|
|
|
|
|
|
|
GSE
obligations
|
526
|
|
|
523
|
|
|
306
|
|
|
|
Mortgage-backed
securities
|
15,202
|
|
|
16,674
|
|
|
22,584
|
|
|
|
Equity
|
266
|
|
|
252
|
|
|
33
|
|
|
|
Municipal bonds and
other debt
|
3,539
|
|
|
3,552
|
|
|
3,375
|
|
|
Interest-bearing
deposits
|
61
|
|
|
93
|
|
|
840
|
|
|
Federal Home Loan
Bank stock
|
2,200
|
|
|
2,858
|
|
|
4,432
|
|
|
|
Total interest and
dividend income
|
220,544
|
|
|
237,880
|
|
|
256,099
|
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
|
21,192
|
|
|
29,310
|
|
|
53,179
|
|
|
Borrowed
funds
|
18,617
|
|
|
19,776
|
|
|
29,637
|
|
|
|
Total interest
expense
|
39,809
|
|
|
49,086
|
|
|
82,816
|
|
|
|
Net interest
income
|
180,735
|
|
|
188,794
|
|
|
173,283
|
|
Provision for credit
losses
|
(2,972)
|
|
|
(2,682)
|
|
|
31,226
|
|
|
|
Net interest income
after provision for credit losses
|
183,707
|
|
|
191,476
|
|
|
142,057
|
|
Non-interest
income:
|
|
|
|
|
|
|
Fees and service
charges
|
5,848
|
|
|
4,935
|
|
|
6,026
|
|
|
Income on bank owned
life insurance
|
1,952
|
|
|
1,579
|
|
|
1,396
|
|
|
Gain on loans,
net
|
3,833
|
|
|
5,538
|
|
|
1,846
|
|
|
Gain on securities,
net
|
651
|
|
|
157
|
|
|
202
|
|
|
Gain on sales of
other real estate owned, net
|
77
|
|
|
270
|
|
|
740
|
|
|
Gain on
sale-leaseback transactions
|
—
|
|
|
23,129
|
|
|
—
|
|
|
Other
income
|
7,642
|
|
|
10,184
|
|
|
4,450
|
|
|
|
Total non-interest
income
|
20,003
|
|
|
45,792
|
|
|
14,660
|
|
Non-interest
expense:
|
|
|
|
|
|
|
Compensation and
fringe benefits
|
62,427
|
|
|
64,891
|
|
|
60,392
|
|
|
Advertising and
promotional expense
|
2,229
|
|
|
2,645
|
|
|
2,363
|
|
|
Office occupancy and
equipment expense
|
18,073
|
|
|
28,451
|
|
|
15,951
|
|
|
Federal insurance
premiums
|
3,400
|
|
|
3,550
|
|
|
4,401
|
|
|
General and
administrative
|
379
|
|
|
455
|
|
|
534
|
|
|
Professional
fees
|
2,929
|
|
|
3,834
|
|
|
3,983
|
|
|
Data processing and
communication
|
9,136
|
|
|
9,004
|
|
|
7,792
|
|
|
Debt
extinguishment
|
—
|
|
|
22,807
|
|
|
—
|
|
|
Other operating
expenses
|
5,788
|
|
|
7,230
|
|
|
7,142
|
|
|
|
Total non-interest
expenses
|
104,361
|
|
|
142,867
|
|
|
102,558
|
|
|
|
Income before income
tax expense
|
99,349
|
|
|
94,401
|
|
|
54,159
|
|
Income tax
expense
|
27,074
|
|
|
19,256
|
|
|
14,647
|
|
|
|
Net income
|
$
|
72,275
|
|
|
75,145
|
|
|
39,512
|
|
Basic earnings per
share
|
$0.31
|
|
0.32
|
|
|
0.17
|
|
Diluted earnings per
share
|
$0.31
|
|
0.32
|
|
|
0.17
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
234,661,847
|
|
|
236,679,655
|
|
|
233,262,860
|
|
|
Diluted weighted
average shares outstanding
|
235,379,381
|
|
|
236,757,361
|
|
|
233,632,841
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
Average Balance Sheet
and Yield/Rate Information
|
|
|
|
For the Three
Months Ended
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
March 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
|
$
|
374,599
|
|
61
|
|
0.07
|
%
|
|
$
|
454,986
|
|
93
|
|
0.08
|
%
|
|
$
|
368,027
|
|
840
|
|
0.91
|
%
|
|
Equity
securities
|
35,545
|
|
266
|
|
2.99
|
%
|
|
25,915
|
|
252
|
|
3.89
|
%
|
|
6,090
|
|
33
|
|
2.17
|
%
|
|
Debt securities
available-for-sale
|
2,649,806
|
|
11,268
|
|
1.70
|
%
|
|
2,717,128
|
|
12,502
|
|
1.84
|
%
|
|
2,581,874
|
|
17,271
|
|
2.68
|
%
|
|
Debt securities
held-to-maturity
|
1,222,551
|
|
7,999
|
|
2.62
|
%
|
|
1,264,286
|
|
8,247
|
|
2.61
|
%
|
|
1,128,119
|
|
8,994
|
|
3.19
|
%
|
|
Net loans
|
20,491,619
|
|
198,750
|
|
3.88
|
%
|
|
20,695,149
|
|
213,928
|
|
4.13
|
%
|
|
21,227,295
|
|
224,529
|
|
4.23
|
%
|
|
Federal Home Loan
Bank stock
|
169,354
|
|
2,200
|
|
5.20
|
%
|
|
175,097
|
|
2,858
|
|
6.53
|
%
|
|
271,043
|
|
4,432
|
|
6.54
|
%
|
|
Total interest-earning
assets
|
24,943,474
|
|
220,544
|
|
3.54
|
%
|
|
25,332,561
|
|
237,880
|
|
3.76
|
%
|
|
25,582,448
|
|
256,099
|
|
4.00
|
%
|
Non-interest earning
assets
|
1,139,817
|
|
|
|
|
1,144,838
|
|
|
|
|
956,423
|
|
|
|
|
Total
assets
|
|
$
|
26,083,291
|
|
|
|
|
$
|
26,477,399
|
|
|
|
|
$
|
26,538,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,013,906
|
|
1,480
|
|
0.29
|
%
|
|
$
|
2,039,954
|
|
2,551
|
|
0.50
|
%
|
|
$
|
2,033,761
|
|
3,908
|
|
0.77
|
%
|
|
Interest-bearing
checking
|
6,277,393
|
|
7,028
|
|
0.45
|
%
|
|
6,117,420
|
|
7,823
|
|
0.51
|
%
|
|
5,565,365
|
|
16,660
|
|
1.20
|
%
|
|
Money market
accounts
|
4,695,507
|
|
7,160
|
|
0.61
|
%
|
|
4,949,313
|
|
9,944
|
|
0.80
|
%
|
|
3,819,098
|
|
14,224
|
|
1.49
|
%
|
|
Certificates of
deposit
|
2,637,830
|
|
5,524
|
|
0.84
|
%
|
|
3,035,484
|
|
8,992
|
|
1.18
|
%
|
|
3,918,133
|
|
18,387
|
|
1.88
|
%
|
|
Total
interest-bearing deposits
|
15,624,636
|
|
21,192
|
|
0.54
|
%
|
|
16,142,171
|
|
29,310
|
|
0.73
|
%
|
|
15,336,357
|
|
53,179
|
|
1.39
|
%
|
|
Borrowed
funds
|
3,435,285
|
|
18,617
|
|
2.17
|
%
|
|
3,470,338
|
|
19,776
|
|
2.28
|
%
|
|
5,681,344
|
|
29,637
|
|
2.09
|
%
|
|
Total interest-bearing
liabilities
|
19,059,921
|
|
39,809
|
|
0.84
|
%
|
|
19,612,509
|
|
49,086
|
|
1.00
|
%
|
|
21,017,701
|
|
82,816
|
|
1.58
|
%
|
Non-interest-bearing
liabilities
|
4,285,410
|
|
|
|
|
4,164,206
|
|
|
|
|
2,889,098
|
|
|
|
|
Total
liabilities
|
23,345,331
|
|
|
|
|
23,776,715
|
|
|
|
|
23,906,799
|
|
|
|
Stockholders'
equity
|
2,737,960
|
|
|
|
|
2,700,684
|
|
|
|
|
2,632,072
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
26,083,291
|
|
|
|
|
$
|
26,477,399
|
|
|
|
|
$
|
26,538,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
180,735
|
|
|
|
|
$
|
188,794
|
|
|
|
|
$
|
173,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate
spread
|
|
|
2.70
|
%
|
|
|
|
2.76
|
%
|
|
|
|
2.42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest earning
assets
|
$
|
5,883,553
|
|
|
|
|
$
|
5,720,052
|
|
|
|
|
$
|
4,564,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
2.90
|
%
|
|
|
|
2.98
|
%
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to total interest-bearing
liabilities
|
1.31
|
|
X
|
|
|
1.29
|
|
X
|
|
|
1.22
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
Selected Performance
Ratios
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
March 31,
2021
|
|
December
31, 2020
|
|
March 31,
2020
|
Return on average
assets
|
1.11
|
%
|
|
1.14
|
%
|
|
0.60
|
%
|
Return on average
equity
|
10.56
|
%
|
|
11.13
|
%
|
|
6.00
|
%
|
Return on average
tangible equity
|
11.00
|
%
|
|
11.60
|
%
|
|
6.24
|
%
|
Interest rate
spread
|
2.70
|
%
|
|
2.76
|
%
|
|
2.42
|
%
|
Net interest
margin
|
2.90
|
%
|
|
2.98
|
%
|
|
2.71
|
%
|
Efficiency
ratio
|
51.99
|
%
|
|
60.90
|
%
|
|
54.57
|
%
|
Non-interest expense
to average total assets
|
1.60
|
%
|
|
2.16
|
%
|
|
1.55
|
%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
1.31
|
|
|
1.29
|
|
|
1.22
|
|
|
INVESTORS BANCORP,
INC. AND SUBSIDIARY
|
Selected Financial
Ratios and Other Data
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December
31,
2020
|
Asset Quality
Ratios:
|
|
|
|
|
|
Non-performing assets
as a percent of total assets
|
|
0.38
|
%
|
|
0.47
|
%
|
Non-performing loans
as a percent of total loans
|
|
0.44
|
%
|
|
0.56
|
%
|
Allowance for loan
losses as a percent of non-accrual loans
|
|
340.60
|
%
|
|
264.17
|
%
|
Allowance for loan
losses as a percent of total loans
|
|
1.36
|
%
|
|
1.36
|
%
|
Allowance for credit
losses as a percent of total loans (1)
|
|
1.44
|
%
|
|
1.44
|
%
|
|
|
|
|
|
|
Capital
Ratios:
|
|
|
|
|
|
Tier 1 Leverage Ratio
(2)
|
|
|
10.43
|
%
|
|
10.14
|
%
|
Common equity tier 1
risk-based (2)
|
|
|
13.33
|
%
|
|
13.07
|
%
|
Tier 1 Risk-Based
Capital (2)
|
|
|
13.33
|
%
|
|
13.07
|
%
|
Total Risk-Based
Capital (2)
|
|
|
14.65
|
%
|
|
14.39
|
%
|
Equity to total
assets (period end)
|
|
|
10.73
|
%
|
|
10.41
|
%
|
Average equity to
average assets
|
|
|
10.50
|
%
|
|
10.20
|
%
|
Tangible capital to
tangible assets (3)
|
|
|
10.35
|
%
|
|
10.03
|
%
|
Book value per common
share (3)
|
|
|
$
|
11.70
|
|
|
$
|
11.43
|
|
Tangible book value
per common share (3)
|
|
|
$
|
11.23
|
|
|
$
|
10.97
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
Number of full
service offices
|
|
|
156
|
|
|
156
|
|
Full time equivalent
employees
|
|
|
1,769
|
|
|
1,806
|
|
|
(1) Allowance for
credit losses includes allowance for loan losses and allowance for
losses on unfunded commitments.
|
(2) Capital ratios as
of March 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 March 31, 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
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
Total stockholders'
equity
|
$
|
2,770,552
|
|
|
2,710,003
|
|
Goodwill and
intangible assets
|
110,180
|
|
|
109,633
|
|
Tangible
stockholders' equity
|
$
|
2,660,372
|
|
|
2,600,370
|
|
|
|
|
|
Book Value per
Share Computation
|
|
|
|
Common stock
issued
|
361,869,872
|
|
|
361,869,872
|
|
Treasury
shares
|
(114,221,329)
|
|
|
(113,940,656)
|
|
Shares
outstanding
|
247,648,543
|
|
|
247,929,216
|
|
Unallocated ESOP
shares
|
(10,776,629)
|
|
|
(10,895,052)
|
|
Book value
shares
|
236,871,914
|
|
|
237,034,164
|
|
|
|
|
|
Book Value per
Share
|
$
|
11.70
|
|
|
$
|
11.43
|
|
Tangible Book
Value per Share
|
$
|
11.23
|
|
|
$
|
10.97
|
|
|
|
|
|
Total
assets
|
$
|
25,822,889
|
|
|
26,023,159
|
|
Goodwill and
intangible assets
|
110,180
|
|
|
109,633
|
|
Tangible
assets
|
$
|
25,712,709
|
|
|
25,913,526
|
|
|
|
|
|
Tangible capital
to tangible assets
|
10.35
|
%
|
|
10.03
|
%
|
Contact:
|
Marianne
Wade
|
|
(973)
924-5100
|
|
investorrelations@investorsbank.com
|
View original
content:http://www.prnewswire.com/news-releases/investors-bancorp-inc-announces-first-quarter-financial-results-and-cash-dividend-301279595.html
SOURCE Investors Bancorp, Inc.