ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements categorized as well capitalized, the Bank and the Company must maintain minimum Tier 1 leverage ratio, Common equity tier 1 risk-based, Tier 1 risk-based capital and Total risk-based capital as set forth in the tables. There are no conditions or events since that notification that management believes have changed the Bank and the Company’s category. The following is a summary of the Bank and the Company’s actual capital amounts and ratios as of December 31, 2017 compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution. Actual Minimum Capital Requirement To be Well Capitalized Under Prompt Corrective Action Provisions (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2017: Bank: Tier 1 Leverage Ratio $2,732,757 11.00% $ 993,750 4.00% $1,242,188 5.00% Common equity tier 1 risk-based 2,732,757 13.94% 1,127,081 5.75% 1,274,092 6.50% Tier 1 Risk-Based Capital 2,732,757 13.94% 1,421,102 7.25% 1,568,113 8.00% Total Risk-Based Capital 2,964,721 15.13% 1,813,131 9.25% 1,960,141 10.00% Investors Bancorp, Inc: Tier 1 Leverage Ratio $3,072,783 12.36% $ 994,164 4.00% n/a n/a Common equity tier 1 risk-based 3,072,783 15.67% 1,127,662 5.75% n/a n/a Tier 1 Risk-Based Capital 3,072,783 15.67% 1,421,835 7.25% n/a n/a Total Risk-Based Capital 3,304,747 16.85% 1,814,066 9.25% n/a n/a Actual Minimum Capital Requirement To be Well Capitalized Under Prompt Corrective Action Provisions (1) Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2016: Bank: Tier 1 Leverage Ratio $2,736,173 12.03% $ 909,534 4.00% $1,136,917 5.00% Common equity tier 1 risk-based 2,736,173 14.75% 950,740 5.125% 1,205,817 6.50% Tier 1 Risk-Based Capital 2,736,173 14.75% 1,229,006 6.625% 1,484,082 8.00% Total Risk-Based Capital 2,965,720 15.99% 1,600,026 8.625% 1,855,103 10.00% Investors Bancorp, Inc: Tier 1 Leverage Ratio $3,066,401 13.48% $ 910,058 4.00% n/a n/a Common equity tier 1 risk-based 3,066,401 16.52% 951,411 5.125% n/a n/a Tier 1 Risk-Based Capital 3,066,401 16.52% 1,229,872 6.625% n/a n/a Total Risk-Based Capital 3,295,948 17.75% 1,601,155 8.625% n/a n/a (1) Prompt corrective action provisions do not apply to the Bank holding company. 15. Parent Company Only Financial Statements The following condensed financial statements for Investors Bancorp, Inc. (parent company only) reflect the investment in its wholly-owned subsidiary, Investors Bank, using the equity method of accounting. 131