ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements The following tables provide the level of valuation assumptions used to determine the carrying value of our assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and December 31, 2016. Carrying Value at December 31, 2017 Total Level 1 Level 2 Level 3 (In thousands) Assets: Securities available for sale: Equity securities $ 5,701 5,701 — — Mortgage-backed securities: Federal Home Loan Mortgage Corporation 640,242 — 640,242 — Federal National Mortgage Association 1,303,576 — 1,303,576 — Government National Mortgage Association 38,208 — 38,208 — Total mortgage-backed securities available-for-sale 1,982,026 — 1,982,026 — Total securities available-for-sale $1,987,727 5,701 1,982,026 — Liabilities: Derivative financial instruments (1) $ 613 — 613 — (1) In accordance with the CME rulebook changes effective January 3, 2017, the gross amounts recognized are inclusive of accrued interest and variation margin posted by the CME. Carrying Value at December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets: Securities available for sale: Equity securities $ 6,660 6,660 — — Mortgage-backed securities: Federal Home Loan Mortgage Corporation 598,439 — 598,439 — Federal National Mortgage Association 1,008,587 — 1,008,587 — Government National Mortgage Association 46,747 — 46,747 — Total mortgage-backed securities available-for-sale 1,653,773 — 1,653,773 — Total securities available-for-sale $1,660,433 6,660 1,653,773 — Derivative financial instruments $ 12,550 — 12,550 — There have been no changes in the methodologies used at December 31, 2017 from December 31, 2016, and there were no transfers between Level 1 and Level 2 during the year ended December 31, 2017. There were no Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2017 and December 31, 2016. 125