ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K We also borrow funds under repurchase agreements with the FHLB and various brokers. These agreements are recorded as financing transactions as we maintain effective control over the transferred or pledged securities. The dollar amount of the securities underlying the agreements continues to be carried in our securities portfolio while the obligations to repurchase the securities are reported as liabilities. The securities underlying the agreements are delivered to the party with whom each transaction is executed. Those parties agree to resell to us the identical securities we delivered to them at the maturity of the agreement. The following table sets forth information concerning balances and interest rates on our securities sold under agreements to repurchase at the dates and for the periods indicated. In addition, the Bank had uncommitted unsecured overnight borrowing lines with other institutions totaling $475.0 million, of which no balance was outstanding at December 31, 2017. At or for the Year Ended December 31, 2017 2016 2015 2014 2013 (Dollars in thousands) Balance at end of period $130,481 $154,831 $156,307 $167,918 $267,681 Average balance during period 149,030 153,000 159,438 192,865 164,415 Maximum outstanding at any month end 153,000 154,831 163,000 261,205 267,681 Weighted average interest rate at end of period 1.87% 2.19% 2.21% 2.28% 1.60% Average interest rate during period 2.11% 2.16% 2.25% 2.02% 1.50% Subsidiary Activities Investors Bancorp, Inc. has one direct subsidiary, which is Investors Bank. Investors Bank. Investors Bank is a New Jersey chartered savings bank headquartered in Short Hills, New Jersey. Originally founded in 1926, the bank is in the business of attracting deposits from the public through its branch network and borrowing funds in the wholesale markets to originate loans and to invest in securities. Investors Bank has the following active direct and indirect subsidiaries: Investors Home Mortgage, Investors Investment Corp., Investors Commercial, Inc., Investors Financial Group, Inc., My Way Development LLC, Marathon Realty Investors Inc. and Investors Financial Group Insurance Agency, Inc. In addition, Investors Bank has the following direct and indirect subsidiaries that are dormant and are in the process of being dissolved or merged into other subsidiaries: MNBNY Holdings Inc., B.F.S. Agency, Inc. and 3D Holding Company, Inc. Two other dormant direct or indirect subsidiaries, Roma Capital Investment Corp. and Roma Service Corporation, were dissolved in 2017. Investors Bank has two additional subsidiaries which are inactive; these subsidiaries are Investors Financial Services, Inc. and Investors Real Estate Corporation. • Investors Home Mortgage . Investors Home Mortgage is a New Jersey limited liability company that was formed in 2001 for the purpose of originating loans for sale to both Investors Bank and third parties. During 2011, in conjunction with the rebranding of Investors Bank, this subsidiary changed the name it does business under from ISB Mortgage Co., LLC to Investors Home Mortgage. Investors Home Mortgage serves as Investors Bank’s retail lending production arm throughout the branch network. • Investors Investment Corp. Investors Savings Investment Corp. is a New Jersey corporation that was formed in 2004 as an investment company subsidiary. The purpose of this subsidiary is to invest in securities such as, but not limited to, U.S. Treasury obligations, mortgage-backed securities, certificates of deposit, mutual funds, and equity securities, subject to certain limitations. • Investors Commercial, Inc. Investors Commercial, Inc. is a New Jersey corporation that was formed in 2010 as an operating subsidiary of Investors Bank. The purpose of this subsidiary is to originate and purchase residential mortgage loans and commercial loans including multi-family mortgage loans, commercial real estate mortgage loans and commercial and industrial mortgage loans primarily in New York State. • Investors Financial Group, Inc. Investors Financial Group, Inc. is a New Jersey corporation that was formed in 2011 as an operating subsidiary of Investors Bank. The primary purpose of this subsidiary is 21