ISBC 2017 Form 10-K & 2018 Proxy Statement

For 2017, we posted net income of $126.7 million. The initial application of the Tax Cuts and Jobs Act required us to revalue our deferred tax asssets which resulted in a $49.2 million increase in income tax expense. Excluding the income tax expense related to the enactment of the Tax Cuts and Jobs Act and the after tax impact of our restructuring charge in the fourth quarter, net income was $179.6 million. We anticipate that our effective tax rate will be reduced to approximately 27.5% in the future. During 2017, we continued the build-out of our risk management infrastructure, as well as enhanced technology to support these platforms. Investing in technology to streamline our internal operations is critical for our continued growth. In addition, we are committed to taking the necessary measures to ensure the safety and security of our data, as protecting our customers from cyber risk is paramount. We also recognize the need to continually assess our customer experience and are exploring technology enhancements that can help us meet and exceed their evolving needs and expectations. We are committed to providing customers with increased options for how they interact with us to further ensure their ongoing engagement and satisfaction. During 2017, we made a concerted effort to enhance and increase our brand awareness by launching the “Experts in the Field” multi-media advertising campaign. The campaign was built around former NFL quarterbacks, broadcasters, and philanthropists Boomer Esiason and Phil Simms. The branded content was engaging and interactive, and gave us an opportunity to further penetrate our market and become the leading community-oriented bank in the region. Another opportunity to enhance our market presence and attract core deposits came as a result of the expansion of our successful partnership with the New Jersey Devils. Early in the fourth-quarter, we introduced the New Jersey Devils Checking Account, which gave fans a chance to show their loyalty with New Jersey Devils branded debit card and checks. We are also proud to help sponsor New Jersey Devils’ Goaltender Cory Schneider’s Cory’s Keepers program, which brings under-served community groups to New Jersey Devils home games. Cory’s Keepers is just one of many programs and organizations which Investors supports. Community involvement is one of our four core values: cooperation, character, community, and commitment. We believe that a commitment to the communities where our employees and customers live and work enables us to truly have a positive and meaningful impact. Our employees provide the sweat equity in our communities by donating their time, energy and talents. We are proud of all of their efforts and take pride in the financial support provided by our foundations. In 2017, our foundations made grants totaling $4.5 million to various community organizations. Each and every day, our employees live the words of our Board Chairman Robert M. Cashill, who has always said that “To do well as an organization, you must do good for others.” These words have been the guiding force at Investors for nearly 20 years. We mean them, we believe in them, and they have carried us through our conversion from a savings bank to a publicly held company. Bob has been the driving force behind that evolution, as well as the development of our vision, mission, and most important, our “I continue to be proud of the efforts of our employees and the passion they bring to our Company every day.” 4 • investorsbank.com