Investor Presentation

April 21, 2014

Second-Step Conversion Offering

Issuer Free Writing Prospectus

Filed Pursuant to Rule 433

Registration No. 333-192966

April 21, 2014

2

Free Writing Prospectus

New

Investors

Bancorp,

Inc.

(“New

Investors

Bancorp”)

has

filed

a

registration

statement

(including

a

prospectus)

with

the

SEC

for

the

offering

to

which

this

communication

relates.

Before

you

invest,

you

should

read

the

prospectus

in

that

registration

statement

and

other

documents

New

Investors

Bancorp

has

filed

with

the

SEC

for

more

complete

information

about

New

Investors

Bancorp

and

this

offering.

You

may

get

these

documents

for

free

by

visiting

EDGAR

on

the

SEC

web

site

at

www.sec.gov.

Alternatively,

New

Investors

Bancorp

or

the

underwriters

participating

in

the

offering

will

arrange

to

send

you

the

prospectus

and

the

prospectus

supplement

if

you

request

it

by

calling

toll-free

1-

877-822-4089.

Forward Looking Statements and Risk Factors

This

presentation

contains

forward-looking

information

for

New

Investors

Bancorp,

Inc.

Such

information

constitutes

forward-looking

statements

(within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995)

which

involve

significant

risks

and

uncertainties.

Please

refer

to

the

discussion

of

the

risk

factors

set

forth

in

the

prospectus

for

those

factors

that

may

cause

actual

results

to

differ

materially

from

the

results

discussed

in

these

forward-looking

statements.

3

I.

Offering Summary

4

Offering Summary

Issuer:

New

Investors

Bancorp,

Inc.,

a

newly

formed

Delaware

corporation

(1)

Exchange / Symbol:

NASDAQ / ISBC

Price Per Share:

$10.00

Shares Offered:

170,000,000 (Minimum) to 264,500,000 (Adjusted Maximum)

Gross Proceeds:

$1.7 billion (Minimum) to $2.6 billion (Adjusted Maximum)

Exchange Ratio:

2.6698x (Maximum)

Maximum Purchase Limitations:

$8.0 million individual / $50.0 million group

Bookrunners:

RBC Capital Markets | Keefe, Bruyette & Woods | Sandler O’Neill +

Partners, L.P.

Lead Managers:

Barclays | Deutsche Bank Securities  | J.P. Morgan

Co-Managers:

Sterne Agee | Boenning & Scattergood, Inc.

Expected Subscription Offering Results:

April 25, 2014

Expected Pricing:

May 1, 2014

Source: Firm Commitment Underwriting Offering Prospectus.

(1) 

Created in connection with the conversion of Investors Bancorp, MHC from a mutual holding company to a stock holding company form of organization.

5

Pro Forma Financial Information

Appraisal

Maximum

Number of Shares Offered:

230.0 million

Pro Forma Shares Outstanding:

373.9 million

Pro Forma Market Capitalization:

$3.7 billion

Pro

Forma

Tangible

Equity

/

Tangible

Assets:

(1)

18.7%

Price

/

Pro

Forma

Tangible

Book

Value:

(1)

1.12x

Price

/

Pro

Forma

EPS:

(1)

32.3x

Peers

Peer Median

(2)

Price / Tangible Book Value:

1.64x

Price / EPS:

(3)

16.4x

Source: Firm Commitment Underwriting Offering Prospectus except for peer data per SNL Financial.

(1)

For the year ended December 31, 2013, pro forma for second-step conversion offering.

(2)

Market data as of April 17, 2014. Peer group consists of AF, DCOM, FFIC, LBAI, NYCB, NWBI, PBCT, PFS, SBNY, STL, VLY, WBS, SUSQ,

NPBC, FULT, and ORIT.

Note that the peer set differs from the independent appraisal peer set in the prospectus. Financial data as of December 31, 2013.

(3)   EPS for the twelve months ended December 31, 2013.

6

Conversion Structure

Public Stockholders

(Including the Charitable

Foundation)

New Investors Bancorp

Investors Bank

100% of

common

stock

Public Stockholders

(Including the Charitable

Foundation)

Old Investors Bancorp

Investors Bank

Investors Bancorp, MHC

12/31/2013

Pro-Forma

100% of

common

stock

38% of

common

stock

62% of

common

stock

100% of

common

stock

Source: Firm Commitment Underwriting Offering Prospectus.

7

II.

Investment & Company Highlights

8

Largest Bank Headquartered in

New Jersey and Fifth Largest in Metro NY

(1) (2)

Branches (129)

History

Founded in 1926

Completed $516 million first-step conversion in

October 2005

Transformed from a wholesale thrift into a high

performing commercial bank

Competitive Strategy

Community involvement and engaged

employee base differentiate Investors from

other banks, particularly large banks

Source: SNL Financial and company reports.  Deposit figures shown as of June 30, 2013.

(1)

Ranked by assets and excludes Bank of New York Mellon.

(2)

Pro forma as of December 31, 2013 for Gateway Community Financial Corp and second-step offering net proceeds assuming the maximum of the appraisal

range.

(3)

Pro forma for pending acquisitions.

Largest

NJ

Headquartered

Institutions

(3)

Deposit

Ranking

Institution

Total

Assets

($bn)

NJ

Deposits

($bn)

NJ 

Branches

1

Investors Bancorp

18.0

9.1

104

2

Valley National Bancorp

16.2

8.6

168

3

Provident Financial Services

8.4

5.7

86

4

Columbia Bank

4.5

3.2

44

5

Sun Bancorp

3.1

2.7

55

(2)

Key Statistics

Total Assets

(2)

$18.0 billion

2013 ROAA / ROAE

0.83% / 10.0%

Market Cap

(2)

$3.7 billion

9

Investment Rationale

$18

billion

in

total

assets

(1)

,

commercial

focused

bank

operating

in

some

of

the

best

markets

in

the

U.S.

Experienced management team with track record of successful capital deployment

-

Transformed Investors from a wholesale thrift into a high performing commercial bank

-

Fully leveraged first-step conversion proceeds through organic growth, acquisitions and repurchase

of approximately 30% of shares issued in first-step as of December 31, 2013

-

Total

return

of

over

166%

since

2005

first-step

conversion

offering

(2)

Meaningful growth opportunities

-

New

York

and

Philadelphia

metro

markets

dominated

by

large

banks

against

which

Investors

competes

effectively

-

Continued commercial build out focused on C&I lending

-

Numerous acquisition opportunities within footprint

Strong profitability and asset quality

Attractively valued vs. peers

(1)

Total assets as of December 31, 2013, pro forma for Gateway Community Financial Corp and second-step offering net proceeds assuming the maximum of the appraisal

range.

(2)

For the period beginning on October 12, 2005  and ending April 17, 2014.

10

Experienced Management Team

Executive

Role

Years at

Investors

Years of Financial

Services Experience

Kevin Cummings

Director, President & Chief Executive Officer

11

36

Domenick Cama

Director, Senior EVP, Chief Operating Officer

11

40

Thomas Splaine

SVP, Chief Financial Officer

9

25

Richard Spengler

EVP, Chief Lending Officer

10

31

Paul Kalamaras

EVP, Chief Retail Banking Officer

6

33

Daniel Harris

SVP, Technology & Operations

6

35

Thomas Stackhouse

SVP, Chief Credit Officer

5

27

Joseph Orefice

SVP, Commercial Real Estate Lending

5

25

Mark Noto

SVP, Business Lending

2

30

Dennis Budnick

SVP, Chief Culture Officer

2

24

11

2006

2007

2008

2009

2010

2011

2012

2013

Organic

Acquisitions

$15.9

$12.7

$10.7

$9.6

$8.4

$6.4

$5.7

$5.6

Investors has grown assets at a 15% compounded annual growth rate (“CAGR”) through a balance

of organic growth and acquisitions

Growth Since First-Step Conversion

($ in billions)

Source: SNL Financial and company reports. 2013 assets are pro forma for Gateway Community Financial Corp. acquisition,

Note: Figures shown as of fiscal year end. Years 2006 to 2009 reflect June 30 fiscal year end.  Years 2010 to 2013 reflect December 31 fiscal year end, as

Investors changed its fiscal year end to December 31 in 2009.

12

Source: SNL Financial and company reports. 2006 data as of fiscal year end June 30, 2006. 2013 data as of fiscal year end December 31, 2013.

Loan CAGR: 22%

Core Deposit CAGR: 33%

Branch CAGR: 15%

Interest Earning Assets CAGR: 15%

1-4 Family

Multi-family

C&I

CRE

Other

Cash and

Securities

Loans

($ in millions)

Jumbo CDs

Retail CDs

MMDA &

Savings

DDA

Franchise Transformation

Interest Earning Assets

Total Loans

Deposits

Number of Branches

11%

29%

14%

39%

59%

17%

16%

15%

2006

2013

$3,419

$10,719

55%

86%

45%

14%

2006

2013

$5,443

$15,110

4%

2%

19%

31%

90%

44%

2006

2013

$2,983

$13,065

46

129

2006

2013

13

Opportunistic and Disciplined Acquiror

Investors has completed 8 whole bank and branch acquisitions since 2008, growing its asset and

deposit base significantly while generating only $78 million in goodwill

January 2014

Gateway Community

Financial (MHC)

4 branches in NJ

$287 million in assets

$255 million in deposits

Merger of mutual

enterprises

December 2013

Roma Financial

Corporation (MHC)

26 branches in NJ

$1,632 million in assets

$1,341 million in deposits

$113 million transaction

value

(1)

0.53x Minority TBV

October 2012

Marathon Banking

Corporation

13 branches in NY and NJ

$787 million in assets

$777 million in deposits

$135 million transaction

value

1.51x TBV / 5.8% deposit

premium

January 2012

Brooklyn Federal

Bancorp, Inc. (MHC)

5 branches

$386 million in deposits

$2.9 million transaction

value

(1)

0.25x Minority TBV

Subsequent commercial

loan sale / hedge

October 2010

Deposit Franchise of

Millennium bcpbank

17 branches in NJ, NY &

MA

$600 million in deposits

0.11% deposit premium

$200 million in performing

loans

October 2009

6 NJ Branches from

Banco Popular

North America

6 branches

$227 million in deposits

1.0% deposit premium

No loans acquired in the

transaction

May 2009

American Bancorp

of New Jersey

5 branches

$670 million in assets

$520 million in deposits

$98 million transaction

value

1.01x TBV / 1.2% deposit

premium

June 2008

Summit Federal Bankshares

(MHC)

5 branches

$110 million in assets

$95 million in deposits

Pooling of interests

Source: SNL Financial and company reports. Transaction value, multiples and deposit premiums are as of the announcement date.

(1)

Based on consideration to minority stockholders.

14

Strong and Improving Profitability

Investors has been consistently profitable, with improvement resulting from balance sheet

repositioning and expense controls

Source:

SNL

Financial

and

company

reports.

Figures

shown

as

of

fiscal

year

end.

Years

2006

to

2009

reflect

June

30

fiscal

year

end.

Years

2010

to

2013

reflect

December

31

fiscal

year

end,

as

Investors

changed

its

fiscal

year

end

to

December

31

in

2009.

Note:

Peer

group

consists

of

AF,

DCOM,

FFIC,

LBAI,

NYCB,

NWBI,

PBCT,

PFS,

SBNY,

STL,

VLY,

WBS,

SUSQ,

NPBC,

FULT,

and

ORIT. 

(1)

2009

ROAE

and

ROAA

are

adjusted

for

one-time

special

assessment

fee

and

realized

losses

on

securities.

See

appendix

for

reconciliation

to

GAAP

financials.

(2)

Efficiency

ratio

defined

as

non

interest

expense

/

(non

interest

income

+

net

interest

income).

(3)

For

2008,

2009,

2012

and

2013,

see

appendix

for

reconciliation

to

GAAP

financials.

Net Interest Margin

Efficiency Ratio

(2) (3)

Return on Average Assets

(1)

Return on Average Equity

(1)

Investors

Peer Median

TE / TA:

16.3%

15.0%

12.9%

9.8%

9.0%

8.7%

7.7%

7.9%

2.0%

10.0%

9.3%

7.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2006

2007

2008

2009

2010

2011

2012

2013

79%

51%

57%

60%

40%

50%

60%

70%

80%

90%

2006

2007

2008

2009

2010

2011

2012

2013

2.06%

3.37%

3.20%

3.37%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2006

2007

2008

2009

2010

2011

2012

2013

0.28%

0.83%

0.84%

0.87%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

2006

2007

2008

2009

2010

2011

2012

2013

15

Excellent Credit Quality

Despite strong growth, Investors has maintained superior credit quality and substantially bolstered

reserves

Non-Performing Assets / Total Assets

Net Charge-Offs / Average Loans

Loan Loss Reserves / Gross Loans

Investors

Peer Median

Source: SNL Financial and company reports. Figures shown as of fiscal year end. Years 2006 to 2009 reflect June 30 fiscal year end.  Years 2010 to 2013 reflect December 31

fiscal year end, as Investors changed its fiscal year end to December 31 in 2009.

Note: Peer group consists of AF, DCOM,  FFIC, LBAI, NYCB, NWBI, PBCT, PFS, SBNY, STL, VLY, WBS, SUSQ, NPBC, FULT, and ORIT. 

0.1%

1.0%

0.2%

1.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2006

2007

2008

2009

2010

2011

2012

2013

0.00%

0.17%

0.04%

0.32%

0.00%

0.15%

0.30%

0.45%

0.60%

0.75%

2006

2007

2008

2009

2010

2011

2012

2013

0.21%

1.33%

0.85%

1.18%

0.0%

0.5%

1.0%

1.5%

2.0%

2006

2007

2008

2009

2010

2011

2012

2013

Total Return Since First-Step Conversion

Source: SNL Financial, Bloomberg and company reports.  EPS is as-reported, adjusted for non-recurring items. See appendix for reconciliation to GAAP financials.

166% total return since first-step conversion in October 2005, significantly outperforming the

broader banking sector

2006

Mar  Jun  Sep

Dec

2007

Mar  Jun  Sep Dec

2008

Mar Jun  Sep

Dec

2009

Mar  Jun  Sep

Dec

2010

Mar Jun  Sep

Dec

2011

Mar  Jun  Sep  Dec

2012

Mar Jun  Sep

Dec

2013

Mar Jun  Sep

Dec

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

(100%)

(50%)

0%

50%

100%

10/12/05

4/17/14

Investors Quarterly EPS

Investors Total Return

KBW Regional Banking Index (KRX)

7%

CAGR since ISBC First-Step

150%

200%

Investors Total Return

12.2%

KBW Regional Banking Index (KRX)

0.8%

166%

16

17

Business Priorities

Continue transition into a commercial bank

-

Increase commercial loans and core deposits

-

Build credit and risk management infrastructure

-

Convert core processing system

Grow organically and through acquisitions in existing markets

Focus on core competencies

-

Safety and soundness: strong asset quality and risk management

-

Expense control

-

Prudent yet efficient capital utilization

Maintain focus on delivering superior customer service

Involvement in communities

-

Continue to promote a higher quality of life in the communities Investors serves

through employee volunteer efforts and the Charitable Foundation

18

Market Share Opportunities

Source:

SNL

Financial.

Note:

Large

Banks

defined

as

having

over

$50

billion

in

assets.

(1)

Excludes

institutional

deposits

(defined

as

deposits

/

#

of

branches)

of

greater

than

$4

billion.

Investors

has

the

opportunity

to

gain

share

from

the

large

money

center

&

super-regional

banks

within

its footprint

New

York

City

MSA

Market

Share

(1)

Philadelphia

MSA

Market

Share

(1)

Total Deposits:

$1.0 Trillion

Total Deposits:

$0.3 Trillion

Small market share

gains are capable of contributing billions

in new loan and deposit growth

19

Numerous Acquisition Opportunities

Note:

Public

and

private

banks

and

thrifts

between

$500mm

-

$10bn

headquartered

in

each

respective

geography

(excludes

mutuals

and

MHC’s).

Source: SNL Financial, assets as of December 31, 2013.

(1)

Banks in the State of New Jersey not headquartered in the NYC and Philadelphia MSAs.

Total: 67

67 banks in existing markets between $500 million and $10 billion in assets

20

Use of Proceeds & Capital Management

Use of proceeds and capital management priorities:

-

Repayment of maturing short-term borrowings and investment in short-dated

securities

-

Organic growth

-

Cash dividends

-

Share repurchases

-

Acquisitions

Repurchased 30% of shares issued in first-step conversion

Long-term target tangible common ratio of approximately 8%

21

Positioning for Rising Rates

Historically Investors has been liability sensitive

Consistent with Investors’

transition to a commercial bank business model,

Investors has and continues to:

–

Diversify its asset mix with shorter duration commercial loans

–

Increase core deposit funding

–

Invest primarily in shorter-duration securities

–

Use borrowings to hedge interest rate risk

Investment of conversion proceeds into shorter-dated securities will further

enhance positioning for rising rates

22

Summary of First Quarter Results

($000s)

At

March 31,

2014

At

December 31,

2013

Total assets

$16,426,309

$15,623,070

Loans receivable, net

13,392,754

12,882,544

Deposits

11,391,228

10,718,811

Borrowed funds

3,372,780

3,367,274

Goodwill and intangibles

(1)

109,889

109,129

Stockholders’

equity

1,395,757

1,334,327

Asset Quality Ratios:

Non-performing assets as a percent of

total assets

0.88%

0.95%

Allowance for loan losses as a percent of

total loans

1.33%

1.33%

($000s, except per share amounts)

For the Three Months

Ended March 31,

2014

2013

Net income

$34,418

$27,167

Earnings

per

share

—

basic

$0.26

$0.25

Earnings

per

share

—

diluted

$0.25

$0.25

Return on average assets

0.86%

0.85%

Return on average equity

9.98%

10.10%

Net interest margin

3.36%

3.36%

Efficiency ratio

54.7%

50.0%

Selected Financial Condition Data

Selected Operating & Profitability Data

Source: Company reports.

(1)

Includes $78 million of goodwill.

23

Investment Rationale

$18

billion

in

total

assets

(1)

,

commercial

focused

bank

operating

in

some

of

the

best

markets

in

the U.S.

Experienced management team with track record of successful capital deployment

-

Transformed Investors from a wholesale thrift into a high performing commercial bank

-

Fully leveraged first-step conversion proceeds through organic growth, acquisitions and repurchase

of approximately 30% of shares issued in first-step as of December 31, 2013

-

Meaningful growth opportunities

-

New

York

and

Philadelphia

metro

markets

dominated

by

large

banks

against

which

Investors

competes effectively

-

Continued commercial build out focused on C&I lending

-

Numerous acquisition opportunities within footprint

(1)

Total assets as of December 31, 2013, pro forma for Gateway Community Financial Corp and second-step offering net proceeds assuming the maximum of the appraisal

range.

(2)

For the period beginning on October 12, 2005 and ending April 17, 2014.

Strong profitability and asset quality

Attractively valued vs. peers

Total

return

of

over

166%

since

2005

first-step

conversion

offering

(2)

24

APPENDIX

25

Overview of Indicative Valuation Range

Source: Firm Commitment Underwritten Offering Prospectus.

($mm, except per share data)

Minimum

Midpoint

Maximum

Adjusted

Maximum

Shares in Offering

170.0

200.0

230.0

264.5

Shares Issued for Shares of Old Investors Bancorp

105.6

124.2

142.9

164.3

Shares Issued to the Charitable Foundation

1.0

1.0

1.0

1.0

Pro Forma Shares Outstanding

276.6

325.2

373.9

429.8

Implied Exchange Ratio

1.9733x

2.3215x

2.6698x

3.0702x

Proceeds

Gross Proceeds

$1,700

$2,000

$2,300

$2,645

Net Income

Pro Forma Earnings Per Share

$0.42

$0.35

$0.31

$0.27

Price / Pro Forma Earnings Per Share

23.81x

28.57x

32.26x

37.04x

Stockholders' Equity

Pro Forma Stockholders' equity

$2,799.2

$3,070.6

$3,342.0

$3,654.1

Tangible Book Value Per Share

$10.12

$9.45

$8.94

$8.51

Price / Tangible Book Value

0.99x

1.06x

1.12x

1.18x

Tangible Equity / Tangible Assets

16.1%

17.4%

18.7%

20.1%

26

Loan Portfolio

Total Loans by Type

Loans by Geography

Business Lending Portfolio

Source: SNL Financial and company reports. Based on regulatory data. Figures shown as of December 31, 2013.

Total: $13.1 billion

Residential

Commercial

Total $6.1bn

Total $7.0bn

Total $685mm

NJ

77%

NY

14%

Others

9%

1-

4 Family, 44%

Multi-family, 30%

CRE, 19%

C&D, 2%

C&I, 2%

Consumer & Other,

3%

NY

51%

NJ

34%

Other Mid-

Atlantic

15%

Investment Real

Estate

16%

Healthcare

13%

Hotel / Motel

11%

Non Profit

10%

Service

7%

Restaurant

4%

Wholesale

4%

Retail

4%

Less than 4%

Composition

31%

27

Securities Portfolio

Securities

Securities Portfolio Composition

Source: Company reports. Figures shown as of December 31, 2013.

($mm)

Carrying Value

Est Fair Value

AFS

Equity

$7.1

$8.4

GSE Debt

3.0

3.0

Corporate and other

0.7

0.7

MBS

Agency

771.9

772.9

Non-Agency

0.0

0.0

Total AFS

$782.8

$785.0

Held-to-maturity:

Debt securities:

GSE

$4.5

$4.5

Municipal bonds

15.0

15.5

Corporate and other

29.7

48.6

Mortgage-backed securities:

Agency

782.6

770.5

Non Agency

0.0

0.0

Total HTM Securities

$831.8

$839.1

Total Securities

$1,614.6

$1,624.1

Agency HTM

48%

Agency AFS

48%

Other

4%

28

Highly Attractive Banking Markets

Source: SNL Financial, US Census Bureau, Bureau of Economic Analysis. Note: New York City MSA excludes institutional deposits (defined as deposits / # of branches) of greater

than

$4

billion.

New

York

City

MSA

is

defined

as

New

York

–

Newark

–

Jersey

City.

(1)

Weighted average by MSA.

Investors is well positioned in some of the largest, most dense and affluent markets in the U.S.

State of

New Jersey

New York City

MSA

Philadelphia

MSA

Investors 

Weighted

Average

(1)

National

Population:

8,840,746

19,764,907

6,019,190

314,467,933

Projected Population Growth (2013 - 2018):

1.6%

2.4%

1.8%

2.3%

3.6%

Median Household Income (HHI):

$68,482

$62,660

$59,198

$63,049

$51,314

Projected HHI Annual Growth (2013 - 2018):

3.3%

4.1%

4.5%

4.1%

3.0%

Unemployment Rate (Dec. 2013):

6.7%

6.6%

6.4%

6.5%

6.7%

# of Businesses / Square Mile:

54

98

51

92

4

Total Deposits in Market (as of 6/30/2013, mm):

$274,878

$1,082,292

$319,920

29

Historical Profitability and Asset Quality Ratios

Source: SNL Financial and company reports. Figures shown as of fiscal year end. Years 2006 to 2009 reflect June 30 fiscal year end.  Years 2010 to 2013 reflect December 31fiscal year end, as Investors changed its fiscal year

end to December 31 in 2009. Note: Peer group consists of AF, DCOM,  FFIC, LBAI, NYCB, NWBI, PBCT, PFS, SBNY, STL, VLY, WBS, SUSQ, NPBC, FULT, and ORIT. 

(1)

2009 ROAE and ROAA are adjusted for one-time special assessment fee and realized losses on securities. See next page for reconciliation to GAAP financials.

(2)

Efficiency ratio defined as non interest expense/ (non interest income + net interest income).

(3)

For 2008, 2009, 2012 and 2013, see next page for reconciliation to GAAP financials.

2006

2007

2008

2009

2010

2011

2012

2013

Profitability Ratios

Return on Average Equity

(1)

ISBC

2.0%

2.5%

1.9%

3.9%

7.0%

8.4%

8.7%

10.0%

Peers

9.3%

7.6%

5.3%

3.5%

5.7%

7.5%

7.9%

7.7%

Efficiency Ratio

(2)(3)

ISBC

79%

83%

72%

53%

44%

44%

46%

51%

Peers

57%

61%

56%

59%

58%

57%

58%

60%

Net Interest Margin

ISBC

2.06%

1.65%

1.81%

2.38%

3.17%

3.39%

3.40%

3.37%

Peers

3.20%

3.25%

3.37%

3.19%

3.48%

3.60%

3.53%

3.37%

Return on Average Assets

(1)

ISBC

0.28%

0.39%

0.27%

0.44%

0.70%

0.78%

0.77%

0.83%

Peers

0.84%

0.75%

0.64%

0.46%

0.71%

0.84%

0.91%

0.87%

Asset Quality Ratios

Non-Performing Assets / Total Assets

ISBC

0.1%

0.1%

0.3%

1.5%

1.7%

1.5%

1.1%

1.0%

Peers

0.2%

0.3%

0.8%

1.5%

1.9%

2.0%

1.6%

1.3%

Net Charge Offs / Average Loans

ISBC

0.00%

0.00%

0.00%

0.00%

0.43%

0.58%

0.43%

0.17%

Peers

0.04%

0.11%

0.20%

0.56%

0.63%

0.59%

0.43%

0.32%

Loan Loss Reserves / Gross Loans

ISBC

0.21%

0.19%

0.29%

0.76%

1.14%

1.32%

1.36%

1.33%

Peers

0.85%

0.86%

1.07%

1.30%

1.40%

1.38%

1.31%

1.18%

30

Non-GAAP Financial Measures

Source: Company reports.

EPS Reconciliation

($mm, except per share data)

One-Time Adjustments, Net of Tax

EPS

Quarter Ending

Reported Net

Income

Tax Benefit

Related to

DTA

Loss on

Securities

OTTI

FDIC

Assessment

Bargain

Purchase

Gain

Acquisition

Expenses

Adjusted Net

Income

Reported

Adjusted

December 31, 2006

$12.0

($10.7)

$2.2

–

–

–

$3.5

$0.11

$0.03

September 30, 2008

$5.5

–

–

$2.3

–

–

–

$7.8

$0.05

$0.08

December 31, 2008

($83.0)

–

–

$90.6

–

–

–

$7.6

($0.80)

$0.07

June 30, 2009

$5.5

–

–

$0.7

$2.1

–

–

$8.3

$0.05

$0.08

December 31, 2010

$16.9

–

–

–

–

($1.8)

$1.5

$16.6

$0.16

$0.15

March 31, 2012

$18.9

–

–

–

–

–

$3.7

$22.6

$0.18

$0.21

December 31, 2012

$21.4

–

–

–

–

–

$4.4

$25.8

$0.20

$0.24

December 31, 2013

$27.5

–

–

$0.6

–

–

$3.5

$31.6

$0.24

$0.27

ROAA and ROAE Reconciliation

($mm)

One-Time Adjustments, Net of Tax

ROAA

ROAE

Year Ending

Reported Net

Income

OTTI

FDIC

Assessment

Loss on

Conversion

of Like Kind

Securities

Adjusted Net

Income

Reported

Adjusted

Reported

Adjusted

June 30, 2009

($64.9)

$93.8

$2.1

$0.5

$31.4

(0.90%)

0.44%

(8.1%)

3.9%

Efficiency Ratio Reconciliation

($mm)

Reported

One-Time Adjustments

Adjusted

Efficiency Ratio

Year Ending

Net Interest

Income

Non Interest

Income

Non Interest

Expenses

FDIC

Assessment

OTTI

Loss on

Conversion

of Like Kind

Securities

Acquisition

Expense

Non Interest

Income

Non Interest

Expenses

Reported

Adjusted

June 30, 2008

$105.1

$7.4

$80.8

$0.4

–

–

–

$7.8

–

71.8%

71.6%

June 30, 2009

$166.1

($148.4)

$97.8

($3.6)

$158.5

$0.8

–

$10.8

$94.2

552.3%

53.2%

December 31, 2012

$372.7

$44.1

$207.0

–

–

–

($13.3)

–

$193.7

49.7%

46.5%

December 31, 2013

$435.4

$36.6

$245.7

($5.6)

($1.0)

–

–

–

$239.1

52.1%

50.7%

Investor Presentation