ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K INVESTORS BANCORP, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows For the Years Ended December 31, 2017 2016 2015 (In thousands) Cash flows from operating activities: Net income $ 126,744 192,125 181,505 Adjustments to reconcile net income to net cash provided by operating activities: ESOP and stock-based compensation expense 27,071 27,632 14,921 Amortization of premiums and accretion of discounts on securities, net 15,077 13,702 13,943 Amortization of premiums and accretion of fees and costs on loans, net (4,506) (4,508) (10,122) Amortization of intangible assets 2,427 2,881 3,350 Provision for loan losses 16,250 19,750 26,000 Depreciation and amortization of office properties and equipment 17,421 16,190 13,930 Gain on securities transactions, net (1,275) (3,100) (1,036) Mortgage loans originated for sale (140,171) (245,792) (238,608) Proceeds from mortgage loan sales 175,669 219,078 590,636 Gain on sales of mortgage loans, net (2,384) (4,154) (5,258) Gain on sale of other real estate owned (591) (96) (1,631) Income on bank owned life insurance (3,742) (4,423) (3,948) Increase in accrued interest receivable (6,886) (7,406) (3,296) Deferred tax expense (benefit) 100,008 11,640 (3,180) Decrease in other assets 19,840 3,479 4,245 Decrease in other liabilities (38,542) (9,862) (45,332) Total adjustments 175,666 35,011 354,614 Net cash provided by operating activities 302,410 227,136 536,119 Cash flows from investing activities: Purchases of loans receivable (540,898) (141,562) (198,623) Net originations of loans receivable (807,105) (1,795,505) (1,990,008) Proceeds from disposition of loans held for investment 48,902 10,398 49,938 Gain on disposition of loans held for investment (803) (646) (2,528) Net proceeds from sale of foreclosed real estate 4,751 5,021 7,104 Proceeds from principal repayments/calls/maturities of securities available for sale 339,049 302,769 252,683 Proceeds from sales of securities available for sale 102,120 57,879 — Proceeds from principal repayments/calls/maturities of securities held to maturity 321,294 368,543 300,549 Proceeds from sales of securities held to maturity — 14,348 — Purchases of securities available for sale (785,917) (744,380) (375,605) Purchases of securities held to maturity (364,837) (295,157) (582,337) Proceeds from redemptions of Federal Home Loan Bank stock 180,599 215,142 157,342 Purchases of Federal Home Loan Bank stock (174,265) (274,583) (184,492) Purchases of office properties and equipment (20,235) (21,088) (25,550) Death benefit proceeds from bank owned life insurance 10,047 875 6,405 Net cash used in investing activities (1,687,298) (2,297,946) (2,585,122) Cash flows from financing activities: Net increase in deposits 2,076,864 1,217,177 1,891,330 Repayments of funds borrowed under other repurchase agreements (23,000) — (10,000) Net (decrease) increase in other borrowings (61,718) 1,283,161 506,986 Net (decrease) increase in advance payments by borrowers for taxes and insurance (1,543) (2,870) 38,828 Dividends paid (101,550) (82,291) (87,395) Exercise of stock options 9,141 34,317 10,119 Purchase of treasury stock (59,090) (363,410) (382,922) Net cash provided by financing activities 1,839,104 2,086,084 1,966,946 Net increase (decrease) in cash and cash equivalents 454,216 15,274 (82,057) Cash and cash equivalents at beginning of period 164,178 148,904 230,961 Cash and cash equivalents at end of period $ 618,394 164,178 148,904 Supplemental cash flow information: Non-cash investing activities: Real estate acquired through foreclosure 5,913 3,351 4,448 Transfer of loans to loans held for sale — — 347,955 Cash paid during the year for: Interest 197,810 152,807 135,930 Income taxes 101,948 117,127 88,169 See accompanying notes to consolidated financial statements. 82