ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements The components of net periodic benefit cost are as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Service cost $1,486 2,088 3,096 Interest cost 1,513 1,895 1,497 Amortization of: Prior service cost — — 49 Net loss 458 2,055 1,282 Total net periodic benefit cost $3,457 6,038 5,924 The following are the weighted average assumptions used to determine net periodic benefit cost: Years Ended December 31, 2017 2016 2015 Discount rate 3.80% 3.99% 3.71% Rate of compensation increase —% 4.36% 4.19% Estimated future benefit payments, which reflect expected future service, as appropriate for the next ten calendar years are as follows: Amount (In thousands) 2018 $ 896 2019 879 2020 2,078 2021 2,718 2022 2,694 2023 through 2027 14,452 401(k) Plan The Company has a 401(k) plan covering substantially all employees provided they meet the eligibility age requirement of age 21. For the year ended December 31, 2017, the Company matched 50% of the first 8% contributed by the participants to the 401(k) plan. For the years ended December 31, 2016 and 2015 the Company matched 50% of the first 6% contributed by participants. In addition, for 2017, the 401(k) plan includes a discretionary profit sharing plan for eligible employees. The Company’s aggregate contributions to the 401(k) plan for the years ended December 31, 2017, 2016 and 2015 were $4.9 million, $2.6 million and $2.2 million, respectively. Employee Stock Ownership Plan The ESOP is a tax-qualified plan designed to invest primarily in the Company’s common stock that provides employees with the opportunity to receive a funded retirement benefit from the Bank, based primarily on the value of the Company’s common stock. During the Company’s initial public stock offering in October 2005, the ESOP was authorized to purchase, and did purchase, 10,847,883 shares of the Company’s common stock at a price of $3.92 per share with the proceeds of a loan from the Company to the ESOP. In connection with the completion of the Company’s mutual to stock conversion on May 7, 2014, the ESOP purchased an 116