ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K Beginning September of 2012, we began to pay a quarterly cash dividend of $0.02 per share. Since then our dividend has increased to $0.09 per share. For the year ended December 31, 2017 our dividend payout ratio was 75% which includes a 12.5% dividend increase in the fourth quarter of 2017 to $0.09 per share. Involvement in Our Communities Investors Bank proudly promotes a higher quality of life in the communities it serves in New Jersey and New York through employee volunteer efforts and our Charitable Foundations. Employees are continually encouraged to become leaders in their communities and use Investors Bank’s support to help others. Through the Investors Charitable Foundation, established in 2005, and the Roma Charitable Foundation, which we acquired in December 2013, Investors Bank has contributed or committed $27.9 million in donations to enrich the lives of New Jersey and New York citizens by supporting initiatives in the arts, education, youth development, affordable housing, and health and human services. Community involvement is one of the principal values of Investors Bank and provides our staff with a meaningful ability to help others. We believe these efforts contribute to creating a culture at Investors Bank that promotes high employee morale while enhancing the presence of Investors Bank in our local markets. Lending Activities Our loan portfolio is comprised of multi-family loans, commercial real estate loans, construction loans, commercial and industrial loans, residential mortgage loans and consumer and other loans. At December 31, 2017, multi-family loans totaled $7.80 billion, or 38.8% of our total loan portfolio, commercial real estate loans totaled $4.55 billion, or 22.6% of our total loan portfolio, commercial and industrial loans totaled $1.63 billion, or 8.1% of our total loan portfolio, and construction loans totaled $416.9 million, or 2.1% of our total loan portfolio. Residential mortgage loans represented $5.03 billion, or 25.0% of our total loans at December 31, 2017. We also offer consumer loans, which consist primarily of home equity loans, home equity lines of credit and cash surrender value lending on life insurance contracts. At December 31, 2017, consumer and other loans totaled $671.1 million, or 3.3% of our total loan portfolio. 5