ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements The following table sets forth information regarding the Wage Replacement Plan and the Directors’ Plan: December 31, 2017 2016 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 40,296 47,887 Service cost 1,486 2,088 Interest cost 1,513 1,895 Gain due to change in mortality assumption (260) (468) Loss due to change in discount rate 2,270 1,035 Gain due to demographic changes (1,375) (6,716) Settlements — (233) Actuarial gain (196) (27) Curtailment — (4,294) Benefits paid (833) (871) Benefit obligation at end of year 42,901 40,296 Funded status $(42,901) (40,296) The unfunded pension benefits of $42.9 million and $40.3 million at December 31, 2017 and 2016, respectively, are included in other liabilities in the consolidated balance sheets. The components of accumulated other comprehensive loss related to pension plans, on a pre-tax basis, at December 31, 2017 and 2016, are summarized in the following table. December 31, 2017 2016 (In thousands) Prior service cost $ — — Net actuarial loss 6,738 6,759 Total amounts recognized in accumulated other comprehensive loss $6,738 6,759 The accumulated benefit obligation for the Wage Replacement Plan and Directors’ Plan was $36.2 million and $33.5 million at December 31, 2017 and 2016, respectively. The measurement date for our Wage Replacement Plan and Directors’ Plan is December 31 for the years ended December 31, 2017 and 2016. The weighted-average actuarial assumptions used in the plan determinations at December 31, 2017 and 2016 were as follows: December 31, 2017 2016 Discount rate 3.34% 3.80% Rate of compensation increase —% —% 115