ISBC 2017 Form 10-K & 2018 Proxy Statement

storsbank.com • 5 core values. After our Annual Meeting this year, Bob will be retiring. Bob’s leadership skills and extensive experience in the financial services industry will be missed. He has been our key advisor and driving force in the transformation of Investors Bank. Also retiring this year is Brian D. Dittenhafer, who was first elected to our Board in 1997. His knowledge of the banking industry and strong background in economics has been an invaluable asset to Investors. We are extremely grateful to both Bob and Brian for their dedicated service to Investors and for the example they have set. We are committed to continuing the vision and mission that they helped to define. I continue to be proud of the efforts of our employees and the passion they bring to our Company every day. Our teams are on the path of continuous improvement with a goal of creating long-term value for our shareholders. We will continue to keep a watchful eye on our operating expenses and manage our growth appropriately. This Company remains above the well-capitalized standards with a strong capital position of 12.4%. We are one of the strongest regional banks in the country and continue to be good stewards of your investment. In 2017, the Company repurchased an additional 4.5 million shares of stock for a total of $59.1 million. Shareholders received dividends of $0.33 per share in 2017, totaling $101.6 million. Looking ahead, rising short-term interest rates combined with competitive pricing in both the loan and deposit markets will continue to create a challenging net interest margin environment for financial institutions. Our business strategy of diversifying our loan mix with higher yielding loans, such as the recently added capital leasing portfolio, will help to counter this headwind. Our capital position and our ability to grow loans and deposits will also provide momentum as we navigate through this rising interest rate cycle. Our credit metrics, including non-performing loans and net charge offs, have been very strong and are a direct result of the credit culture at the Bank. We continue to make investments in our risk management infrastructure in the areas of technology, cyber security, credit risk and operations. We are committed to managing our expenses and leveraging our investments in these risk areas as we continue to grow. I am optimistic about the economic outlook. In early 2018, we are starting to see the benefit of higher disposable incomes for consumers and additional investments by businesses as the tax cuts move through the economy. On behalf of the Board of Directors, management, and staff, thank you for your investment and for being a shareholder of Investors Bancorp. We are grateful for your confidence, trust, and the opportunity to serve you. Sincerely, Kevin Cummings President and Chief Executive Officer inve