Delaware | 001-36441 | 46-4702118 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer | ||
Identification No.) |
101 JFK Parkway, Short Hills, New Jersey | 07078 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2). | |
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Item 2.02 | Results of Operation and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits |
(a) | Not Applicable. |
(b) | Not Applicable. |
(c) | Not Applicable |
(d) | Exhibits. |
INVESTORS BANCORP, INC. | ||
DATE: April 27, 2018 | By: | /s/ Sean Burke |
Sean Burke | ||
Senior Vice President and Chief Financial Officer | ||
• | Total assets increased $96.4 million to $25.23 billion at March 31, 2018 from $25.13 billion at December 31, 2017. |
• | Net loans increased $499.1 million, or 2.5%, to $20.35 billion at March 31, 2018 from $19.85 billion at December 31, 2017. |
• | During February, we completed the acquisition of a $345.8 million equipment finance portfolio, comprised of both loans and leases, which is classified within our commercial and industrial (“C&I”) loan portfolio. In connection with the acquisition, we launched an Equipment Finance Group, a seven-person team of professionals, within our C&I team. |
• | Net interest income for the three months ended March 31, 2018 was $172.5 million, a 1.3% decrease compared to the three months ended December 31, 2017 driven primarily by interest expense on deposits. Net interest income increased 3.2% for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 driven primarily by loan growth. |
• | Deposits decreased $811.4 million from $17.36 billion at December 31, 2017 to $16.55 billion at March 31, 2018, reflecting seasonality, the timing and impact of tax reform on government and municipal deposits and rising interest rates. Government and municipal deposits accounted for approximately 65% of the quarterly deposit decline. |
• | Non-interest expenses were $101.1 million for the three months ended March 31, 2018 compared to $109.5 million for the three months ended December 31, 2017. Our efficiency ratio declined to 55.67% for the three months ended March 31, 2018 from 59.85% for the three months ended December 31, 2017. The decrease was primarily driven by professional fees which decreased $4.3 million. Included in the three months ended December 31, 2017 were $5.9 million of severance benefits and branch closure costs from our plan to reduce operating expenses. |
• | During the three months ended March 31, 2018, the Company repurchased 4.5 million shares of its outstanding common stock for approximately $61.9 million. |
• | Interest expense increased $3.5 million, primarily attributed to an increase in the weighted average cost of interest-bearing liabilities of 6 basis points to 1.22% for the three months ended March 31, 2018. Additionally, the average balance of total interest-bearing liabilities increased $141.6 million, or 0.7%, to $19.30 billion. |
• | An increase in interest and dividend income of $1.3 million, or 0.5%, to $231.6 million as compared to the fourth quarter of 2017 was primarily attributed to a $231.8 million increase in the average balance of net loans resulting from the acquired equipment finance portfolio. Additionally, the weighted average securities yield increased 6 basis points to 2.39%. These increases were partially offset by a 4 basis point decrease in the weighted average loan yield to 4.09%. |
• | Prepayment penalties, which are included in interest income, totaled $5.2 million for the three months ended March 31, 2018 as compared to $5.7 million for the three months ended December 31, 2017. |
• | An increase in interest and dividend income of $21.5 million, or 10.2%, to $231.6 million primarily as a result of a $1.19 billion increase in the average balance of net loans from continued loan origination growth as well as the acquired equipment finance portfolio. The weighted average yield on net loans increased 14 basis points to 4.09% primarily driven by higher average yields on new loan origination volume as well as an increase in prepayment penalties. |
• | Prepayment penalties, which are included in interest income, totaled $5.2 million for the three months ended March 31, 2018 as compared to $3.2 million for the three months ended March 31, 2017. |
• | Interest expense increased $16.1 million, primarily attributed to an increase in the weighted average cost of interest-bearing liabilities of 26 basis points to 1.22% for the three months ended March 31, 2018. Additionally, the average balance of interest-bearing deposits increased $1.36 billion, or 10.2%, to $14.63 billion for the three months ended March 31, 2018 and the average balance of total borrowed funds increased $47.5 million, or 1.0%, to $4.67 billion. |
March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
# 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 | 97 | $ | 16.9 | 126 | $ | 20.0 | 108 | $ | 21.5 | 86 | $ | 14.2 | 103 | $ | 29.2 | |||||||||||||||||||
Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | 3 | 5.0 | 5 | 6.3 | 10 | 15.8 | 4 | 10.4 | 6 | 14.7 | ||||||||||||||||||||||||
Commercial real estate | 5 | 5.7 | 5 | 4.6 | 6 | 32.3 | 2 | 1.9 | 13 | 38.8 | ||||||||||||||||||||||||
Commercial and industrial | 6 | 3.4 | 11 | 4.3 | 8 | 0.6 | 6 | 0.6 | 6 | 1.1 | ||||||||||||||||||||||||
Total 30 to 59 days past due | 111 | 31.0 | 147 | 35.2 | 132 | 70.2 | 98 | 27.1 | 128 | 83.8 | ||||||||||||||||||||||||
60 to 89 days past due: | ||||||||||||||||||||||||||||||||||
Residential and consumer | 46 | 7.7 | 50 | 8.2 | 47 | 7.7 | 35 | 5.8 | 51 | 8.3 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | — | — | 2 | 7.7 | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 1 | 0.3 | 2 | 0.8 | 2 | 1.0 | — | — | 7 | 8.4 | ||||||||||||||||||||||||
Commercial and industrial | 1 | 0.1 | — | — | 2 | 1.4 | 1 | 0.3 | 1 | 0.6 | ||||||||||||||||||||||||
Total 60 to 89 days past due | 48 | 8.1 | 54 | 16.7 | 51 | 10.1 | 36 | 6.1 | 59 | 17.3 | ||||||||||||||||||||||||
Total accruing past due loans | 159 | $ | 39.1 | 201 | $ | 51.9 | 183 | $ | 80.3 | 134 | $ | 33.2 | 187 | $ | 101.1 | |||||||||||||||||||
Non-accrual: | ||||||||||||||||||||||||||||||||||
Residential and consumer | 390 | $ | 72.5 | 427 | $ | 76.4 | 417 | $ | 74.3 | 447 | $ | 81.0 | 470 | $ | 76.2 | |||||||||||||||||||
Construction | 1 | 0.3 | 1 | 0.3 | — | — | — | — | — | — | ||||||||||||||||||||||||
Multi-family | 8 | 20.2 | 5 | 15.0 | 4 | 14.2 | 6 | 19.0 | 2 | 0.5 | ||||||||||||||||||||||||
Commercial real estate | 38 | 19.7 | 37 | 34.0 | 31 | 35.3 | 36 | 75.6 | 24 | 8.2 | ||||||||||||||||||||||||
Commercial and industrial | 19 | 23.3 | 11 | 10.0 | 6 | 1.9 | 5 | 1.8 | 4 | 2.2 | ||||||||||||||||||||||||
Total non-accrual loans | 456 | $ | 136.0 | 481 | $ | 135.7 | 458 | $ | 125.7 | 494 | $ | 177.4 | 500 | $ | 87.1 | |||||||||||||||||||
Accruing troubled debt restructured loans | 54 | $ | 12.4 | 49 | $ | 11.0 | 58 | $ | 13.4 | 45 | $ | 11.7 | 47 | $ | 12.2 | |||||||||||||||||||
Non-accrual loans to total loans | 0.66 | % | 0.68 | % | 0.63 | % | 0.89 | % | 0.45 | % | ||||||||||||||||||||||||
Allowance for loan losses as a percent of non-accrual loans | 169.97 | % | 170.17 | % | 183.09 | % | 129.68 | % | 265.16 | % | ||||||||||||||||||||||||
Allowance for loan losses as a percent of total loans | 1.12 | % | 1.15 | % | 1.15 | % | 1.16 | % | 1.18 | % |
March 31, 2018 | December 31, 2017 | |||||
(In thousands) | ||||||
Commercial Loans: | ||||||
Multi-family loans | $ | 7,844,123 | 7,802,835 | |||
Commercial real estate loans | 4,593,577 | 4,548,101 | ||||
Commercial and industrial loans | 2,024,903 | 1,625,375 | ||||
Construction loans | 390,853 | 416,883 | ||||
Total commercial loans | 14,853,456 | 14,393,194 | ||||
Residential mortgage loans | 5,083,779 | 5,026,517 | ||||
Consumer and other | 665,647 | 671,137 | ||||
Total Loans | 20,602,882 | 20,090,848 | ||||
Deferred fees and premiums on purchased loans, net | (20,506 | ) | (7,778 | ) | ||
Allowance for loan losses | (231,144 | ) | (230,969 | ) | ||
Net loans | $ | 20,351,232 | 19,852,101 |
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||
Consolidated Balance Sheets | ||||||
March 31, 2018 | December 31, 2017 | |||||
(unaudited) | (audited) | |||||
Assets | (Dollars in thousands) | |||||
Cash and cash equivalents | $ | 153,439 | 618,394 | |||
Equity securities | 5,677 | 5,701 | ||||
Debt securities available-for-sale, at estimated fair value | 1,940,588 | 1,982,026 | ||||
Debt securities held-to-maturity, net (estimated fair value of $1,717,381 and $1,820,125 at March 31, 2018 and December 31, 2017, respectively) | 1,715,531 | 1,796,621 | ||||
Loans receivable, net | 20,351,232 | 19,852,101 | ||||
Loans held-for-sale | 1,011 | 5,185 | ||||
Federal Home Loan Bank stock | 264,919 | 231,544 | ||||
Accrued interest receivable | 74,200 | 72,855 | ||||
Other real estate owned | 4,873 | 5,830 | ||||
Office properties and equipment, net | 177,368 | 180,231 | ||||
Net deferred tax asset | 130,250 | 121,663 | ||||
Bank owned life insurance | 207,274 | 155,635 | ||||
Goodwill and intangible assets | 101,609 | 97,665 | ||||
Other assets | 97,706 | 3,793 | ||||
Total assets | $ | 25,225,677 | 25,129,244 | |||
Liabilities and Stockholders’ Equity | ||||||
Liabilities: | ||||||
Deposits | $ | 16,546,325 | 17,357,697 | |||
Borrowed funds | 5,361,260 | 4,461,533 | ||||
Advance payments by borrowers for taxes and insurance | 128,745 | 104,308 | ||||
Other liabilities | 97,266 | 80,255 | ||||
Total liabilities | 22,133,596 | 22,003,793 | ||||
Stockholders’ equity: | ||||||
Preferred stock, $0.01 par value, 100,000,000 authorized shares; none issued | — | — | ||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 359,070,852 issued at March 31, 2018 and December 31, 2017; 301,796,438 and 306,126,087 outstanding at March 31, 2018 and December 31, 2017, respectively | 3,591 | 3,591 | ||||
Additional paid-in capital | 2,789,102 | 2,784,390 | ||||
Retained earnings | 1,115,337 | 1,084,177 | ||||
Treasury stock, at cost; 57,274,414 and 52,944,765 shares at March 31, 2018 and December 31, 2017, respectively | (692,516 | ) | (633,110 | ) | ||
Unallocated common stock held by the employee stock ownership plan | (83,509 | ) | (84,258 | ) | ||
Accumulated other comprehensive loss | (39,924 | ) | (29,339 | ) | ||
Stockholders’ equity | 3,092,081 | 3,125,451 | ||||
Total liabilities and stockholders’ equity | $ | 25,225,677 | 25,129,244 |
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
For the Three Months Ended | ||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest and dividend income: | ||||||||||||||
Loans receivable and loans held-for-sale | $ | 204,722 | 204,017 | 185,961 | ||||||||||
Securities: | ||||||||||||||
GSE obligations | 274 | 275 | 8 | |||||||||||
Mortgage-backed securities | 20,022 | 19,015 | 16,709 | |||||||||||
Equity | 35 | 31 | 48 | |||||||||||
Municipal bonds and other debt | 2,258 | 2,329 | 4,068 | |||||||||||
Interest-bearing deposits | 455 | 1,005 | 107 | |||||||||||
Federal Home Loan Bank stock | 3,801 | 3,645 | 3,193 | |||||||||||
Total interest and dividend income | 231,567 | 230,317 | 210,094 | |||||||||||
Interest expense: | ||||||||||||||
Deposits | 36,376 | 33,723 | 22,184 | |||||||||||
Borrowed funds | 22,707 | 21,904 | 20,791 | |||||||||||
Total interest expense | 59,083 | 55,627 | 42,975 | |||||||||||
Net interest income | 172,484 | 174,690 | 167,119 | |||||||||||
Provision for loan losses | 2,500 | 4,500 | 4,000 | |||||||||||
Net interest income after provision for loan losses | 169,984 | 170,190 | 163,119 | |||||||||||
Non-interest income: | ||||||||||||||
Fees and service charges | 5,458 | 5,360 | 4,928 | |||||||||||
Income on bank owned life insurance | 1,286 | 916 | 725 | |||||||||||
Gain on loans, net | 257 | 263 | 992 | |||||||||||
(Loss) gain on securities, net | (46 | ) | — | 1,227 | ||||||||||
Gain (loss) on sales of other real estate owned, net | 153 | (280 | ) | 174 | ||||||||||
Other income | 2,002 | 1,960 | 1,657 | |||||||||||
Total non-interest income | 9,110 | 8,219 | 9,703 | |||||||||||
Non-interest expense: | ||||||||||||||
Compensation and fringe benefits | 59,061 | 58,970 | 57,274 | |||||||||||
Advertising and promotional expense | 2,087 | 3,455 | 2,085 | |||||||||||
Office occupancy and equipment expense | 16,578 | 17,740 | 14,847 | |||||||||||
Federal insurance premiums | 4,500 | 4,500 | 3,710 | |||||||||||
General and administrative | 500 | 763 | 734 | |||||||||||
Professional fees | 4,402 | 8,712 | 7,421 | |||||||||||
Data processing and communication | 6,123 | 6,871 | 5,860 | |||||||||||
Other operating expenses | 7,834 | 8,463 | 7,627 | |||||||||||
Total non-interest expenses | 101,085 | 109,474 | 99,558 | |||||||||||
Income before income tax expense | 78,009 | 68,935 | 73,264 | |||||||||||
Income tax expense | 20,084 | 73,689 | 27,244 | |||||||||||
Net income (loss) | $ | 57,925 | (4,754 | ) | 46,020 | |||||||||
Basic earnings (loss) per share | $ | 0.20 | (0.02 | ) | 0.16 | |||||||||
Diluted earnings (loss) per share | $ | 0.20 | (0.02 | ) | 0.16 | |||||||||
Basic weighted average shares outstanding | 287,685,531 | 288,739,899 | 291,185,408 | |||||||||||
Diluted weighted average shares outstanding | 289,131,916 | 288,739,899 | 293,407,422 |
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Information | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||||
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 | $ | 199,283 | 455 | 0.91 | % | $ | 398,950 | 1,005 | 1.01 | % | $ | 144,142 | 107 | 0.30 | % | |||||||||||||
Equity securities | 5,702 | 35 | 2.46 | % | 5,668 | 31 | 2.19 | % | 6,031 | 48 | 3.18 | % | ||||||||||||||||
Debt securities available-for-sale | 2,020,833 | 10,852 | 2.15 | % | 1,971,398 | 10,301 | 2.09 | % | 1,715,487 | 8,248 | 1.92 | % | ||||||||||||||||
Debt securities held-to-maturity | 1,759,737 | 11,702 | 2.66 | % | 1,747,492 | 11,318 | 2.59 | % | 1,724,751 | 12,537 | 2.91 | % | ||||||||||||||||
Net loans | 20,011,353 | 204,722 | 4.09 | % | 19,779,541 | 204,017 | 4.13 | % | 18,825,615 | 185,961 | 3.95 | % | ||||||||||||||||
Federal Home Loan Bank stock | 239,100 | 3,801 | 6.36 | % | 232,077 | 3,645 | 6.28 | % | 241,156 | 3,193 | 5.30 | % | ||||||||||||||||
Total interest-earning assets | 24,236,008 | 231,567 | 3.82 | % | 24,135,126 | 230,317 | 3.82 | % | 22,657,182 | 210,094 | 3.71 | % | ||||||||||||||||
Non-interest earning assets | 697,486 | 756,703 | 755,164 | |||||||||||||||||||||||||
Total assets | $ | 24,933,494 | $ | 24,891,829 | $ | 23,412,346 | ||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Savings | $ | 2,331,475 | 3,290 | 0.56 | % | $ | 2,126,490 | 2,342 | 0.44 | % | $ | 2,106,087 | 1,834 | 0.35 | % | |||||||||||||
Interest-bearing checking | 4,812,897 | 13,579 | 1.13 | % | 4,731,338 | 11,379 | 0.96 | % | 4,104,085 | 6,483 | 0.63 | % | ||||||||||||||||
Money market accounts | 4,091,149 | 9,292 | 0.91 | % | 4,286,045 | 9,594 | 0.90 | % | 4,179,321 | 7,190 | 0.69 | % | ||||||||||||||||
Certificates of deposit | 3,398,732 | 10,215 | 1.20 | % | 3,545,263 | 10,408 | 1.17 | % | 2,885,079 | 6,677 | 0.93 | % | ||||||||||||||||
Total interest-bearing deposits | 14,634,253 | 36,376 | 0.99 | % | 14,689,136 | 33,723 | 0.92 | % | 13,274,572 | 22,184 | 0.67 | % | ||||||||||||||||
Borrowed funds | 4,667,160 | 22,707 | 1.95 | % | 4,470,651 | 21,904 | 1.96 | % | 4,619,618 | 20,791 | 1.80 | % | ||||||||||||||||
Total interest-bearing liabilities | 19,301,413 | 59,083 | 1.22 | % | 19,159,787 | 55,627 | 1.16 | % | 17,894,190 | 42,975 | 0.96 | % | ||||||||||||||||
Non-interest-bearing liabilities | 2,508,888 | 2,560,328 | 2,365,481 | |||||||||||||||||||||||||
Total liabilities | 21,810,301 | 21,720,115 | 20,259,671 | |||||||||||||||||||||||||
Stockholders’ equity | 3,123,193 | 3,171,714 | 3,152,675 | |||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 24,933,494 | $ | 24,891,829 | $ | 23,412,346 | ||||||||||||||||||||||
Net interest income | $ | 172,484 | $ | 174,690 | $ | 167,119 | ||||||||||||||||||||||
Net interest rate spread | 2.60 | % | 2.66 | % | 2.75 | % | ||||||||||||||||||||||
Net interest earning assets | $ | 4,934,595 | $ | 4,975,339 | $ | 4,762,992 | ||||||||||||||||||||||
Net interest margin | 2.85 | % | 2.90 | % | 2.95 | % | ||||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.26 | X | 1.26 | X | 1.27 | X |
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||||||
Selected Performance Ratios | ||||||||||
For the Three Months Ended | ||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||
Return on average assets | 0.93 | % | (0.08 | )% | 0.79 | % | ||||
Return on average assets, adjusted (2) | 0.93 | % | 0.77 | % | 0.79 | % | ||||
Return on average equity | 7.42 | % | (0.60 | )% | 5.84 | % | ||||
Return on average equity, adjusted (2) | 7.42 | % | 6.08 | % | 5.84 | % | ||||
Return on average tangible equity | 7.67 | % | (0.62 | )% | 6.03 | % | ||||
Return on average tangible equity, adjusted (2) | 7.67 | % | 6.28 | % | 6.03 | % | ||||
Interest rate spread | 2.60 | % | 2.66 | % | 2.75 | % | ||||
Net interest margin | 2.85 | % | 2.90 | % | 2.95 | % | ||||
Efficiency ratio | 55.67 | % | 59.85 | % | 56.30 | % | ||||
Efficiency ratio, adjusted (2) | 55.67 | % | 56.62 | % | 56.30 | % | ||||
Non-interest expense to average total assets | 1.62 | % | 1.76 | % | 1.70 | % | ||||
Average interest-earning assets to average interest-bearing liabilities | 1.26 | 1.26 | 1.27 | |||||||
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||||||
Selected Financial Ratios and Other Data | ||||||||||
March 31, 2018 | December 31, 2017 | |||||||||
Asset Quality Ratios: | ||||||||||
Non-performing assets as a percent of total assets | 0.61 | % | 0.61 | % | ||||||
Non-performing loans as a percent of total loans | 0.72 | % | 0.73 | % | ||||||
Allowance for loan losses as a percent of non-accrual loans | 169.97 | % | 170.17 | % | ||||||
Allowance for loan losses as a percent of total loans | 1.12 | % | 1.15 | % | ||||||
Capital Ratios: | ||||||||||
Tier 1 Leverage Ratio (1) | 11.27 | % | 11.00 | % | ||||||
Common equity tier 1 risk-based (1) | 13.80 | % | 13.94 | % | ||||||
Tier 1 Risk-Based Capital (1) | 13.80 | % | 13.94 | % | ||||||
Total Risk-Based Capital (1) | 14.95 | % | 15.13 | % | ||||||
Equity to total assets (period end) | 12.26 | % | 12.44 | % | ||||||
Average equity to average assets | 12.53 | % | 12.74 | % | ||||||
Tangible capital to tangible assets (2) | 11.90 | % | 12.10 | % | ||||||
Book value per common share (2) | $ | 10.68 | $ | 10.64 | ||||||
Tangible book value per common share (2) | $ | 10.33 | $ | 10.31 | ||||||
Other Data: | ||||||||||
Number of full service offices | 150 | 156 | ||||||||
Full time equivalent employees | 1,901 | 1,931 | ||||||||
(1) Ratios are for Investors Bank and do not include capital retained at the holding company level. | ||||||||||
(2) See Non-GAAP Reconciliation. |
Investors Bancorp, Inc. | |||||||
Non-GAAP Reconciliation | |||||||
(Dollars in thousands, except share data) | |||||||
Book Value and Tangible Book Value per Share Computation | |||||||
March 31, 2018 | December 31, 2017 | ||||||
Total stockholders’ equity | $ | 3,092,081 | 3,125,451 | ||||
Goodwill and intangible assets | 101,609 | 97,665 | |||||
Tangible stockholders’ equity | $ | 2,990,472 | 3,027,786 | ||||
Book Value per Share Computation | |||||||
Common stock issued | 359,070,852 | 359,070,852 | |||||
Treasury shares | (57,274,414 | ) | (52,944,765 | ) | |||
Shares outstanding | 301,796,438 | 306,126,087 | |||||
Unallocated ESOP shares | (12,197,723 | ) | (12,316,149 | ) | |||
Book value shares | 289,598,715 | 293,809,938 | |||||
Book Value per Share | $ | 10.68 | $ | 10.64 | |||
Tangible Book Value per Share | $ | 10.33 | $ | 10.31 |
Investors Bancorp, Inc. | |||||||||
Non-GAAP Reconciliation | |||||||||
(dollars in thousands, except share data) | |||||||||
Net Income (Loss) and Diluted EPS, as adjusted | |||||||||
For the Three Months Ended | |||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||
Income before income tax expense | $ | 78,009 | 68,935 | 73,264 | |||||
Income tax expense | 20,084 | 73,689 | 27,244 | ||||||
Net income (loss) | $ | 57,925 | (4,754 | ) | 46,020 | ||||
Effective tax rate | 25.7 | % | 106.9 | % | 37.2 | % | |||
Compensation and fringe benefits (1) | $ | — | 3,409 | — | |||||
Office occupancy and equipment expense (2) | — | 2,496 | — | ||||||
Total non-interest expense adjustments | — | 5,905 | — | ||||||
Non-interest expense adjustments, net of tax | — | 3,804 | — | ||||||
Tax reform impact (3) | — | 49,164 | — | ||||||
Adjusted net income | $ | 57,925 | 48,214 | 46,020 | |||||
Adjusted tax rate | 25.7 | % | 35.6 | % | 37.2 | % | |||
Adjusted diluted earnings per share | $ | 0.20 | 0.17 | 0.16 | |||||
Weighted average diluted shares (4) | 289,131,916 | 290,419,182 | 293,407,422 | ||||||
Performance Ratios, as adjusted | |||||||||
For the Three Months Ended | |||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||
Total non-interest expense | $ | 101,085 | 109,474 | 99,558 | |||||
Net interest income | 172,484 | 174,690 | 167,119 | ||||||
Total non-interest income | 9,110 | 8,219 | 9,703 | ||||||
Efficiency ratio | 55.67 | % | 59.85 | % | 56.30 | % | |||
Compensation and fringe benefits (1) | — | 3,409 | — | ||||||
Office occupancy and equipment expense (2) | — | 2,496 | — | ||||||
Adjusted non-interest expense | $ | 101,085 | 103,569 | 99,558 | |||||
Adjusted efficiency ratio | 55.67 | % | 56.62 | % | 56.30 | % | |||
Average tangible equity | $ | 3,022,769 | 3,073,035 | 3,050,868 | |||||
Average equity | $ | 3,123,193 | 3,171,714 | 3,152,675 | |||||
Average assets | $ | 24,933,494 | 24,891,829 | 23,412,346 | |||||
Adjusted return on average assets | 0.93 | % | 0.77 | % | 0.79 | % | |||
Adjusted return on average equity | 7.42 | % | 6.08 | % | 5.84 | % | |||
Adjusted return on average tangible equity | 7.67 | % | 6.28 | % | 6.03 | % | |||
(1) Compensation and fringe benefits includes severance benefits related to the workforce reduction announced in December 2017. | |||||||||
(2) Office occupancy and equipment expense includes costs related to the branch closures announced in December 2017. | |||||||||
(3) Increase to income tax expense related to the enactment of the Tax Act. | |||||||||
(4) Adjusted diluted earnings per share for the three months ended December 31, 2017 includes the effects of dilutive common stock equivalents. |