ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Notes to Consolidated Financial Statements Other Comprehensive Income Year Ended December 31, 2017 2016 2015 (In thousands) Net income $126,744 192,125 181,506 Other comprehensive income, net of tax: Unrealized gain on securities available-for-sale 534 543 433 Total other comprehensive income 534 543 433 Total comprehensive income $127,278 192,668 181,939 Statements of Cash Flows Year Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net income $ 126,744 192,125 181,506 Adjustments to reconcile net income to net cash provided by operating activities: Dividend in excess of earnings (equity in undistributed earnings of subsidiary) 5,420 (163,340) (180,370) Gain on securities transactions, net — (72) 1,682 Decrease in other assets 14,678 14,805 2,107 Increase (decrease) in other liabilities 1,346 (3,655) 4,927 Net cash provided by operating activities 148,188 39,863 9,852 Cash flows from investing activities: Purchases of securities held-to-maturity — (5,000) — Proceeds from principal repayments on equity securities available-for-sale 1,000 72 2,700 Principal collected on ESOP loan 2,045 2,050 2,062 Net cash provided by (used in) investing activities 3,045 (2,878) 4,762 Cash flows from financing activities: Purchase of treasury stock (59,090) (363,410) (382,922) Exercise of stock options 9,141 34,317 2,985 Dividends paid (101,550) (82,291) (87,395) Net cash used in financing activities (151,499) (411,384) (467,332) Net decrease in cash and due from bank (266) (374,399) (452,718) Cash and due from bank at beginning of year 195,114 569,513 1,022,231 Cash and due from bank at end of year $ 194,848 195,114 569,513 133