ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Consolidated Statements of Income For the Years Ended December 31, 2017 2016 2015 (Dollars in thousands, except per share data) Interest and dividend income: Loans receivable and loans held-for-sale $ 783,938 715,901 663,424 Securities: Equity 139 198 123 Government-sponsored enterprise obligations 486 36 45 Mortgage-backed securities 70,827 60,211 55,096 Municipal bonds and other debt 10,762 7,713 5,929 Interest-bearing deposits 2,164 342 225 Federal Home Loan Bank stock 13,367 9,120 6,881 Total interest and dividend income 881,683 793,521 731,723 Interest expense: Deposits 113,543 82,057 71,414 Borrowed Funds 88,364 71,279 65,225 Total interest expense 201,907 153,336 136,639 Net interest income 679,776 640,185 595,084 Provision for loan losses 16,250 19,750 26,000 Net interest income after provision for loan losses 663,526 620,435 569,084 Non-interest income Fees and service charges 20,326 17,148 17,119 Income on bank owned life insurance 3,742 4,423 3,948 Gain on loans, net 3,187 4,787 7,786 Gain on securities transactions, net 1,275 3,100 1,036 Gain on sale of other real estate owned, net 591 96 1,631 Other income 6,516 7,647 8,605 Total non-interest income 35,637 37,201 40,125 Non-interest expense Compensation and fringe benefits 227,177 206,698 186,320 Advertising and promotional expense 14,411 8,644 10,988 Office occupancy and equipment expense 61,509 56,220 50,865 Federal deposit insurance premiums 16,610 12,183 9,050 General and administrative 3,030 3,131 4,372 Professional fees 38,853 20,104 16,104 Data processing and communication 24,364 21,043 22,366 Other operating expenses 32,620 30,541 28,267 Total non-interest expenses 418,574 358,564 328,332 Income before income tax expense 280,589 299,072 280,877 Income tax expense 153,845 106,947 99,372 Net income $ 126,744 192,125 181,505 Basic earnings per share $ 0.44 0.65 0.55 Diluted earnings per share $ 0.43 0.64 0.55 Weighted average shares outstanding Basic 290,183,952 297,580,834 329,763,527 Diluted 291,966,475 300,954,885 332,933,448 See accompanying notes to consolidated financial statements. 79