Investors Bancorp, Inc. Announces Fourth Quarter Financial Results and Cash Dividend
Investors Bancorp reported a fourth quarter net income of $94.3 million ($0.40 per share), up from $66.9 million in Q3 2021 and $75.1 million in Q4 2020. For the year, net income reached $313.3 million ($1.33 per share), a significant rise from $221.6 million in 2020. The company declared a cash dividend of $0.16 per share payable on February 25, 2022. Loans increased by $692.7 million in Q4 2021, with non-interest deposits up 7.2%. The merger with Citizens Financial Group is anticipated to close in Q2 2022, pending regulatory approvals.
- Net income increased by $27.4 million from Q3 2021.
- 2021 net income rose $91.8 million year-over-year.
- Loans grew by 3.2% or $692.7 million in Q4.
- Non-interest deposits increased 7.2% in Q4.
- Declared a cash dividend of $0.16 per share.
- Total non-interest income decreased by $518,000 from Q3 2021.
- Total non-interest income down $30.4 million year-over-year.
SHORT HILLS, N.J., Jan. 26, 2022 /PRNewswire/ -- Investors Bancorp, Inc. (NASDAQ: ISBC) ("Company"), the holding company for Investors Bank ("Bank"), reported net income of
For the year ended December 31, 2021, net income totaled
The Company also announced today that its Board of Directors declared a cash dividend of
Kevin Cummings, Chairman and CEO, commented, "We closed the year out on a strong note, with both loans and non-interest bearing deposits growing at double-digit annualized levels. In addition, our profitability reached new heights as the economy and the real estate markets continued to improve over the course of the year. Return on average assets was
Mr. Cummings also commented, "With Shareholder approval received in November, we look forward to the completion of our merger with Citizens. As we await regulatory approvals of the deal, our teams continue to work to ensure a smooth closing and transition."
Performance Highlights
- Total loans increased
$692.7 million , or3.2% , to$22.60 billion during the three months ended December 31, 2021. Commercial Real Estate and Multi Family loans increased$236.6 million , or4.6% and$210.5 million , or2.7% respectively. C&I loans increased$179.9 million , or4.6% , during the three months ended December 31, 2021. - Non-interest-bearing deposits increased
$312.4 million , or7.2% , during the three months ended December 31, 2021. The cost of interest-bearing deposits decreased 3 basis points to0.37% for the three months ended December 31, 2021 compared to the three months ended September 30, 2021. - Return on average assets and return on average tangible equity were
1.35% and13.68% for the three months ended December 31, 2021, respectively. - Net interest margin increased 1 basis point to
3.00% for the three months ended December 31, 2021 compared to the three months ended September 30, 2021. - Provision for credit losses was a negative
$23.0 million for the three months ended December 31, 2021 compared with a negative$13.0 million for the three months ended September 30, 2021. - Total non-interest income was
$15.4 million for the three months ended December 31, 2021, a decrease of$518,000 compared to the three months ended September 30, 2021. - Total non-interest expenses were
$110.9 million for the three months ended December 31, 2021, a decrease of$21.1 million compared to the three months ended September 30, 2021. Included in non-interest expenses for the fourth quarter were$1.5 million of merger and acquisition related costs in connection with the Citizens transaction. Third quarter non-interest expenses included$10.2 million of debt extinguishment costs and$14.9 million of merger and acquisition related costs. - At December 31, 2021, COVID-19 Cares Act related loan payment deferrals decreased to
$279 million , or1.2% of loans, compared to$496 million , or2.3% of loans, as of September 30, 2021. Cares Act loan payment deferrals totaling$275 million are scheduled to expire in the first quarter of 2022. Approximately96% of borrowers with a Cares Act loan payment deferral were making interest payments as of December 31, 2021. - Tier 1 Leverage, Common Equity Tier 1 Risk-Based, Tier 1 Risk-Based and Total Risk-Based Capital Ratios were
10.19% ,12.83% ,12.83% and14.00% , respectively, at December 31, 2021. - On November 19, 2021 the Company's shareholders approved the planned merger with Citizens Financial Group, Inc at a special meeting. Citizens Financial Group and the Company are targeting a transaction close in early second quarter of 2022, subject to the receipt of required regulatory approvals and other customary closing conditions.
Financial Performance Overview
Fourth Quarter 2021 compared to Third Quarter 2021
For the fourth quarter of 2021, net income totaled
Net interest income increased by
- Interest and dividend income increased
$3.8 million , or1.6% , to$235.0 million as compared to the third quarter of 2021, primarily attributable to the average balance of net loans which increased$545.2 million , mainly as a result of loan originations as well as an increase in prepayment penalties. The weighted average yield on net loans decreased 4 basis points to3.93% . - Prepayment penalties, which are included in interest income, totaled
$6.2 million for the three months ended December 31, 2021 as compared to$5.3 million for the three months ended September 30, 2021. - Interest expense decreased
$2.6 million , primarily attributed to the weighted average cost of interest-bearing liabilities which decreased 7 basis points to0.68% for the three months ended December 31, 2021. In addition, the average balance of total borrowed funds decreased$364.6 million , or9.4% , to$3.50 billion for the three months ended December 31, 2021, while the average balance of interest-bearing deposits increased$743.3 million , or4.8% , to$16.38 billion for the three months ended December 31, 2021.
Net interest margin increased 1 basis point to
Total non-interest income was
Total non-interest expenses were
Income tax expense was
Fourth Quarter 2021 compared to Fourth Quarter 2020
For the fourth quarter of 2021, net income totaled
On a year over year basis, fourth quarter of 2021 net interest income increased by
- Interest expense decreased
$15.1 million , or30.7% , primarily attributed to the weighted average cost of interest-bearing liabilities, which decreased 32 basis points to0.68% for the three months ended December 31, 2021. In addition, the average balance of interest-bearing deposits increased$233.2 million , or1.4% , to$16.38 billion for the three months ended December 31, 2021. - Interest and dividend income decreased
$2.9 million , or1.2% , to$235.0 million , primarily attributable to the weighted average yield on net loans which decreased 20 basis point to3.93% and the weighted average yield on securities which decreased 27 basis points to1.83% . Partially offsetting this decrease, the average balance of net loans increased$1.13 billion , mainly as a result of loan originations and$219 million of loans acquired from Berkshire Bank, partially offset by paydowns and payoffs. - Prepayment penalties, which are included in interest income, totaled
$6.2 million for the three months ended December 31, 2021 as compared to$9.2 million for the three months ended December 31, 2020.
Net interest margin increased 2 basis points year over year to
Total non-interest income was
Total non-interest expenses were
Income tax expense was
Year Ended December 31, 2021 compared to Year Ended December 31, 2020
Net income increased by
Net interest income increased by
- Interest expense decreased by
$107.6 million , or42.2% , to$147.6 million for the year ended December 31, 2021, as compared to$255.2 million for the year ended December 31, 2020, primarily attributed to a decrease in the weighted average cost of interest-bearing liabilities of 46 basis points to0.77% for the year ended December 31, 2021. In addition, the average balance of total borrowed funds decreased$960.2 million , or20.6% , to$3.70 billion for the year ended December 31, 2021 and the average balance of interest-bearing deposits decreased$508.2 million , or3.2% , to$15.59 billion for the year ended December 31, 2021. - Interest and dividend income decreased by
$62.3 million , or6.3% , to$918.6 million for the year ended December 31, 2021 as compared to the year ended December 31, 2020, primarily attributed to the weighted average yield on net loans, which decreased 18 basis points to3.96% , and the weighted average yield on securities, which decreased 49 basis points to1.92% as well as the impact of higher cash balances at year end December 31, 2021. - Prepayment penalties, which are included in interest income, totaled
$24.6 million for the year ended December 31, 2021, as compared to$32.4 million for the year ended December 31, 2020.
Net interest margin increased 20 basis points to
Total non-interest income was
Total non-interest expenses were
Income tax expense was
Asset Quality
Our provision for credit losses is primarily a result of the expected credit losses on our loans, unfunded commitments and held-to-maturity debt securities over the life of these financial instruments based on historical experience, current conditions and reasonable and supportable forecasts. Our provision for credit losses is also impacted by the inherent credit risk in these financial instruments, the composition of and changes in our portfolios of these financial instruments, and the level of charge-offs. At December 31, 2021, our allowance for credit losses continues to be affected by the impact of the COVID-19 pandemic on the current and forecasted economic conditions. For the three months ended December 31, 2021, our provision for credit losses was impacted by improving economic and commercial real estate conditions and forecasts. For the three months ended December 31, 2021, our provision for credit losses was negative
Total non-accrual loans were
At December 31, 2021, there were
The following table sets forth non-accrual loans and accruing past due loans (excluding loans held for sale) on the dates indicated as well as certain asset quality ratios.
December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||
# of loans | amount | # of loans | amount | # of loans | amount | # of loans | amount | # of loans | amount | ||||||||||
(Dollars in millions) | |||||||||||||||||||
Accruing past due loans: | |||||||||||||||||||
30 to 59 days past due: | |||||||||||||||||||
Residential and consumer | 47 | $ 10.7 | 50 | $ 12.3 | 62 | $ 12.8 | 62 | $ 13.2 | 84 | $ 18.5 | |||||||||
Construction | — | — | — | — | — | — | — | — | — | — | |||||||||
Multi-family | 7 | 14.0 | 9 | 11.5 | 8 | 16.2 | 10 | 19.2 | 5 | 7.3 | |||||||||
Commercial real estate | 7 | 15.6 | 9 | 19.5 | 2 | 0.5 | 8 | 11.1 | 8 | 9.5 | |||||||||
Commercial and industrial | 9 | 21.3 | 11 | 1.3 | 3 | 14.5 | 9 | 7.3 | 6 | 0.9 | |||||||||
Total 30 to 59 days past due | 70 | 61.6 | 79 | 44.6 | 75 | 44.0 | 89 | 50.8 | 103 | 36.2 | |||||||||
60 to 89 days past due: | |||||||||||||||||||
Residential and consumer | 18 | 1.9 | 18 | 2.3 | 22 | 5.0 | 26 | 3.1 | 28 | 5.2 | |||||||||
Construction | — | — | — | — | — | — | — | — | — | — | |||||||||
Multi-family | 2 | 3.0 | 4 | 8.2 | 4 | 10.2 | 1 | 3.4 | — | — | |||||||||
Commercial real estate | 1 | 1.7 | 1 | 0.3 | — | — | 2 | 2.6 | 5 | 2.3 | |||||||||
Commercial and industrial | 2 | 0.1 | 1 | 0.2 | 1 | — | 1 | 0.2 | 8 | 3.1 | |||||||||
Total 60 to 89 days past due | 23 | 6.7 | 24 | 11.0 | 27 | 15.2 | 30 | 9.3 | 41 | 10.6 | |||||||||
Total accruing past due loans | 93 | $ 68.3 | 103 | $ 55.6 | 102 | $ 59.2 | 119 | $ 60.1 | 144 | $ 46.8 | |||||||||
Non-accrual: | |||||||||||||||||||
Residential and consumer | 216 | $ 38.3 | 231 | $ 43.5 | 232 | $ 42.8 | 239 | $ 45.7 | 246 | $ 46.4 | |||||||||
Construction | — | — | — | — | — | — | — | — | — | — | |||||||||
Multi-family | 13 | 55.3 | 15 | 19.9 | 11 | 16.6 | 13 | 19.2 | 15 | 35.6 | |||||||||
Commercial real estate | 19 | 8.3 | 22 | 9.8 | 24 | 13.0 | 25 | 14.0 | 29 | 15.9 | |||||||||
Commercial and industrial | 15 | 3.3 | 16 | 3.3 | 13 | 5.2 | 15 | 4.4 | 21 | 9.2 | |||||||||
Total non-accrual loans | 263 | $ 105.2 | 284 | $ 76.5 | 280 | $ 77.6 | 292 | $ 83.3 | 311 | $ 107.1 | |||||||||
Accruing troubled debt restructured loans | 44 | $ 7.6 | 47 | $ 8.1 | 49 | $ 9.3 | 45 | $ 9.1 | 47 | $ 9.2 | |||||||||
Non-accrual loans to total loans | 0.47 % | 0.35 % | 0.36 % | 0.40 % | 0.51 % | ||||||||||||||
Allowance for loan losses as a percent of non-accrual loans | 228.82 % | 344.61 % | 348.05 % | 340.60 % | 264.17 % | ||||||||||||||
Allowance for loan losses as a percent of total loans | 1.07 % | 1.20 % | 1.26 % | 1.36 % | 1.36 % | ||||||||||||||
Balance Sheet Summary
Total assets increased
The detail of the loan portfolio is below:
December 31, 2021 | September 30, 2021 | December 31, 2020 | |||
(In thousands) | |||||
Commercial Loans: | |||||
Multi-family loans | $ 7,865,592 | 7,655,135 | 7,122,840 | ||
Commercial real estate loans | 5,371,758 | 5,135,123 | 4,947,212 | ||
Commercial and industrial loans | 4,113,792 | 3,933,926 | 3,575,641 | ||
Construction loans | 550,950 | 509,620 | 404,367 | ||
Total commercial loans | 17,902,092 | 17,233,804 | 16,050,060 | ||
Residential mortgage loans | 3,929,170 | 3,930,683 | 4,119,894 | ||
Consumer and other | 766,785 | 740,827 | 702,801 | ||
Total loans | 22,598,047 | 21,905,314 | 20,872,755 | ||
Deferred fees, premiums and other, net | (14,754) | (17,071) | (9,318) | ||
Allowance for loan losses | (240,681) | (263,515) | (282,986) | ||
Net loans | $ 22,342,612 | 21,624,728 | 20,580,451 | ||
During the year ended December 31, 2021, we originated
In addition to the loans originated for our portfolio, we originated residential mortgage loans for sale to third parties totaling
The allowance for loan losses decreased by
Securities decreased by
Deposits increased by
Borrowed funds increased by
Stockholders' equity increased by
About the Company
Investors Bancorp, Inc. is the holding company for Investors Bank, which as of December 31, 2021 operated from its corporate headquarters in Short Hills, New Jersey and 154 branches located throughout New Jersey, New York and Pennsylvania.
Forward Looking Statements
Certain statements contained herein are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in the "Risk Factors" disclosures included in our Annual Report on Form 10-K, as supplemented in quarterly reports on Form 10-Q, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, failure to consummate the transaction with Citizens Financial Group, Inc. for any reason, including the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company), failure to obtain shareholder approval or failure to satisfy any of the other closing conditions in a timely basis or at all; the diversion of management's time from ongoing business operations due to issues relating to the transaction with Citizens Financial Group, Inc., the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and Citizens Financial Group, Inc., the outcome of any legal proceedings that may be instituted against Citizens Financial Group, Inc. or the Company, potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. Further, given its ongoing and dynamic nature, it is difficult to predict what the continuing effects of the COVID-19 pandemic will have on our business and results of operations. The pandemic and related local and national economic disruption may, among other effects, continue to result in a material adverse change for the demand for our products and services; increased levels of loan delinquencies, problem assets and foreclosures; branch disruptions, unavailability of personnel and increased cybersecurity risks as employees work remotely.
The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Non-GAAP Financial Measures
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. We utilize these measures for internal planning and forecasting purposes. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
INVESTORS BANCORP, INC. AND SUBSIDIARY | |||||
Consolidated Balance Sheets | |||||
December 31, | September 30, | December 31, | |||
(unaudited) | (unaudited) | (audited) | |||
Assets | (Dollars in thousands) | ||||
Cash and cash equivalents | $ 287,990 | 670,295 | 170,432 | ||
Equity securities | 8,194 | 7,673 | 36,000 | ||
Debt securities available-for-sale, at estimated fair value | 2,393,540 | 2,531,573 | 2,758,437 | ||
Debt securities held-to-maturity, net (estimated fair value of | 1,593,785 | 1,272,683 | 1,247,853 | ||
Loans receivable, net | 22,342,612 | 21,624,728 | 20,580,451 | ||
Loans held-for-sale | 809 | 397 | 30,357 | ||
Federal Home Loan Bank stock | 176,480 | 177,058 | 159,829 | ||
Accrued interest receivable | 78,636 | 81,549 | 79,705 | ||
Other real estate owned and other repossessed assets | 2,882 | 5,849 | 7,115 | ||
Office properties and equipment, net | 129,288 | 132,259 | 139,663 | ||
Operating lease right-of-use assets | 199,603 | 203,522 | 199,981 | ||
Net deferred tax asset | 87,251 | 109,588 | 116,805 | ||
Bank owned life insurance | 229,358 | 227,822 | 223,714 | ||
Goodwill and intangible assets | 131,993 | 133,237 | 109,633 | ||
Other assets | 144,197 | 139,561 | 163,184 | ||
Total assets | $ 27,806,618 | 27,317,794 | 26,023,159 | ||
Liabilities and Stockholders' Equity | |||||
Liabilities: | |||||
Deposits | $ 20,824,638 | 20,400,424 | 19,525,419 | ||
Borrowed funds | 3,535,038 | 3,534,536 | 3,295,790 | ||
Advance payments by borrowers for taxes and insurance | 137,438 | 152,407 | 115,729 | ||
Operating lease liabilities | 212,678 | 216,374 | 212,559 | ||
Other liabilities | 158,398 | 161,494 | 163,659 | ||
Total liabilities | 24,868,190 | 24,465,235 | 23,313,156 | ||
Stockholders' equity | 2,938,428 | 2,852,559 | 2,710,003 | ||
Total liabilities and stockholders' equity | $ 27,806,618 | 27,317,794 | 26,023,159 | ||
INVESTORS BANCORP, INC. AND SUBSIDIARY | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Interest and dividend income: | ||||||||||||||
Loans receivable and loans held-for-sale | $ 214,709 | 211,189 | 213,928 | 836,171 | 871,411 | |||||||||
Securities: | ||||||||||||||
GSE obligations | 571 | 567 | 523 | 2,237 | 1,517 | |||||||||
Mortgage-backed securities | 13,800 | 13,321 | 16,674 | 56,539 | 77,925 | |||||||||
Equity | 64 | 65 | 252 | 458 | 362 | |||||||||
Municipal bonds and other debt | 3,443 | 3,601 | 3,552 | 14,039 | 13,480 | |||||||||
Interest-bearing deposits | 281 | 268 | 93 | 648 | 1,460 | |||||||||
Federal Home Loan Bank stock | 2,130 | 2,234 | 2,858 | 8,546 | 14,739 | |||||||||
Total interest and dividend income | 234,998 | 231,245 | 237,880 | 918,638 | 980,894 | |||||||||
Interest expense: | ||||||||||||||
Deposits | 15,036 | 15,683 | 29,310 | 67,905 | 155,589 | |||||||||
Borrowed funds | 18,994 | 20,960 | 19,776 | 79,718 | 99,619 | |||||||||
Total interest expense | 34,030 | 36,643 | 49,086 | 147,623 | 255,208 | |||||||||
Net interest income | 200,968 | 194,602 | 188,794 | 771,015 | 725,686 | |||||||||
Provision for credit losses | (22,999) | (13,015) | (2,682) | (48,676) | 70,158 | |||||||||
Net interest income after provision for credit losses | 223,967 | 207,617 | 191,476 | 819,691 | 655,528 | |||||||||
Non-interest income: | ||||||||||||||
Fees and service charges | 6,143 | 5,196 | 4,935 | 22,080 | 17,916 | |||||||||
Income on bank owned life insurance | 1,536 | 1,508 | 1,579 | 6,548 | 6,638 | |||||||||
Gain on loans, net | 92 | 1,698 | 5,538 | 6,911 | 16,226 | |||||||||
Gain (loss) on securities, net | 503 | (931) | 157 | 506 | 406 | |||||||||
Gain on sale of other real estate owned, net | — | 34 | 270 | 86 | 1,054 | |||||||||
Gain on sale-leaseback transactions | — | — | 23,129 | — | 23,129 | |||||||||
Other income | 7,160 | 8,447 | 10,184 | 28,332 | 25,149 | |||||||||
Total non-interest income | 15,434 | 15,952 | 45,792 | 64,463 | 90,518 | |||||||||
Non-interest expense: | ||||||||||||||
Compensation and fringe benefits | 61,022 | 60,231 | 64,891 | 245,065 | 240,970 | |||||||||
Advertising and promotional expense | 4,346 | 3,111 | 2,645 | 12,083 | 9,551 | |||||||||
Office occupancy and equipment expense | 18,105 | 23,535 | 28,451 | 76,788 | 77,754 | |||||||||
Federal insurance premiums | 2,800 | 2,950 | 3,550 | 12,350 | 14,276 | |||||||||
General and administrative | 624 | 706 | 455 | 2,254 | 2,133 | |||||||||
Professional fees | 5,586 | 12,925 | 3,834 | 26,483 | 16,220 | |||||||||
Data processing and communication | 9,729 | 9,985 | 9,004 | 39,042 | 35,702 | |||||||||
Debt extinguishment | — | 10,159 | 22,807 | 10,159 | 24,098 | |||||||||
Other operating expenses | 8,703 | 8,424 | 7,230 | 31,517 | 28,801 | |||||||||
Total non-interest expenses | 110,915 | 132,026 | 142,867 | 455,741 | 449,505 | |||||||||
Income before income tax expense | 128,486 | 91,543 | 94,401 | 428,413 | 296,541 | |||||||||
Income tax expense | 34,169 | 24,609 | 19,256 | 115,080 | 74,961 | |||||||||
Net income | $ 94,317 | 66,934 | 75,145 | 313,333 | 221,580 | |||||||||
Basic earnings per share | 0.28 | 0.32 | 1.33 | 0.94 | ||||||||||
Diluted earnings per share | 0.28 | 0.32 | 1.33 | 0.94 | ||||||||||
Basic weighted average shares outstanding | 235,935,642 | 235,602,277 | 236,679,655 | 235,315,487 | 235,761,457 | |||||||||
Diluted weighted average shares outstanding | 237,415,493 | 236,413,268 | 236,757,361 | 236,436,081 | 235,838,808 | |||||||||
INVESTORS BANCORP, INC. AND SUBSIDIARY | |||||||||||||
Average Balance Sheet and Yield/Rate Information | |||||||||||||
For the Three Months Ended | |||||||||||||
December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||||
Average | Interest | Weighted | Average | Interest | Weighted | Average | Interest | Weighted | |||||
(Dollars in thousands) | |||||||||||||
Interest-earning assets: | |||||||||||||
Interest-earning cash accounts | $ 858,964 | 281 | 0.13 % | $ 844,365 | 268 | 0.13 % | $ 454,986 | 93 | 0.08 % | ||||
Equity securities | 7,758 | 64 | 3.30 % | 8,747 | 65 | 2.97 % | 25,915 | 252 | 3.89 % | ||||
Debt securities available-for-sale | 2,439,916 | 9,098 | 1.49 % | 2,501,016 | 9,683 | 1.55 % | 2,717,128 | 12,502 | 1.84 % | ||||
Debt securities held-to-maturity | 1,449,625 | 8,716 | 2.41 % | 1,174,563 | 7,806 | 2.66 % | 1,264,286 | 8,247 | 2.61 % | ||||
Net loans | 21,829,427 | 214,709 | 3.93 % | 21,284,262 | 211,189 | 3.97 % | 20,695,149 | 213,928 | 4.13 % | ||||
Federal Home Loan Bank stock | 175,525 | 2,130 | 4.85 % | 192,111 | 2,234 | 4.65 % | 175,097 | 2,858 | 6.53 % | ||||
Total interest-earning assets | 26,761,215 | 234,998 | 3.51 % | 26,005,064 | 231,245 | 3.56 % | 25,332,561 | 237,880 | 3.76 % | ||||
Non-interest earning assets | 1,122,901 | 1,151,571 | 1,144,838 | ||||||||||
Total assets | |||||||||||||
Interest-bearing liabilities: | |||||||||||||
Savings | $ 2,043,716 | 1,326 | 0.26 % | $ 2,060,893 | 1,381 | 0.27 % | $ 2,039,954 | 2,551 | 0.50 % | ||||
Interest-bearing checking | 7,331,456 | 7,090 | 0.39 % | 6,658,248 | 6,833 | 0.41 % | 6,117,420 | 7,823 | 0.51 % | ||||
Money market accounts | 4,785,618 | 4,371 | 0.37 % | 4,613,066 | 4,475 | 0.39 % | 4,949,313 | 9,944 | 0.80 % | ||||
Certificates of deposit | 2,214,590 | 2,249 | 0.41 % | 2,299,850 | 2,994 | 0.52 % | 3,035,484 | 8,992 | 1.18 % | ||||
Total interest-bearing deposits | 16,375,380 | 15,036 | 0.37 % | 15,632,057 | 15,683 | 0.40 % | 16,142,171 | 29,310 | 0.73 % | ||||
Borrowed funds | 3,498,840 | 18,994 | 2.17 % | 3,863,460 | 20,960 | 2.17 % | 3,470,338 | 19,776 | 2.28 % | ||||
Total interest-bearing liabilities | 19,874,220 | 34,030 | 0.68 % | 19,495,517 | 36,643 | 0.75 % | 19,612,509 | 49,086 | 1.00 % | ||||
Non-interest-bearing liabilities | 5,118,684 | 4,827,551 | 4,164,206 | ||||||||||
Total liabilities | 24,992,904 | 24,323,068 | 23,776,715 | ||||||||||
Stockholders' equity | 2,891,212 | 2,833,567 | 2,700,684 | ||||||||||
Total liabilities and stockholders' equity | |||||||||||||
Net interest income | |||||||||||||
Net interest rate spread | 2.83 % | 2.81 % | 2.76 % | ||||||||||
Net interest earning assets | $ 6,886,995 | $ 6,509,547 | $ 5,720,052 | ||||||||||
Net interest margin | 3.00 % | 2.99 % | 2.98 % | ||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.35 | X | 1.33 | X | 1.29 | X | |||||||
INVESTORS BANCORP, INC. AND SUBSIDIARY | |||||||||
Average Balance Sheet and Yield/Rate Information | |||||||||
For the Year Ended | |||||||||
December 31, 2021 | December 31, 2020 | ||||||||
Average | Interest | Weighted | Average | Interest | Weighted | ||||
(Dollars in thousands) | |||||||||
Interest-earning assets: | |||||||||
Interest-earning cash accounts | $ 587,691 | 648 | 0.11 % | $ 773,177 | 1,460 | 0.19 % | |||
Equity securities | 16,222 | 458 | 2.82 % | 11,365 | 362 | 3.19 % | |||
Debt securities available-for-sale | 2,543,274 | 40,636 | 1.60 % | 2,672,537 | 58,873 | 2.20 % | |||
Debt securities held-to-maturity | 1,254,917 | 32,179 | 2.56 % | 1,184,984 | 34,049 | 2.87 % | |||
Net loans | 21,099,992 | 836,171 | 3.96 % | 21,040,964 | 871,411 | 4.14 % | |||
Federal Home Loan Bank stock | 183,001 | 8,546 | 4.67 % | 229,120 | 14,739 | 6.43 % | |||
Total interest-earning assets | 25,685,097 | 918,638 | 3.58 % | 25,912,147 | 980,894 | 3.79 % | |||
Non-interest earning assets | 1,133,861 | 1,096,400 | |||||||
Total assets | $ 26,818,958 | ||||||||
Interest-bearing liabilities: | |||||||||
Savings | $ 2,032,004 | 5,591 | 0.28 % | $ 2,039,686 | 12,056 | 0.59 % | |||
Interest-bearing checking | 6,581,074 | 27,488 | 0.42 % | 5,869,801 | 42,014 | 0.72 % | |||
Money market accounts | 4,615,127 | 20,508 | 0.44 % | 4,367,498 | 42,568 | 0.97 % | |||
Certificates of deposit | 2,359,645 | 14,318 | 0.61 % | 3,819,029 | 58,951 | 1.54 % | |||
Total interest bearing deposits | 15,587,850 | 67,905 | 0.44 % | 16,096,014 | 155,589 | 0.97 % | |||
Borrowed funds | 3,704,903 | 79,718 | 2.15 % | 4,665,094 | 99,619 | 2.14 % | |||
Total interest-bearing liabilities | 19,292,753 | 147,623 | 0.77 % | 20,761,108 | 255,208 | 1.23 % | |||
Non-interest-bearing liabilities | 4,711,391 | 3,594,290 | |||||||
Total liabilities | 24,004,144 | 24,355,398 | |||||||
Stockholders' equity | 2,814,814 | 2,653,149 | |||||||
Total liabilities and stockholders' equity | $ 26,818,958 | ||||||||
Net interest income | $ 771,015 | $ 725,686 | |||||||
Net interest rate spread | 2.81 % | 2.56 % | |||||||
Net interest earning assets | $ 6,392,344 | $ 5,151,039 | |||||||
Net interest margin | 3.00 % | 2.80 % | |||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.33 | X | 1.25 | X | |||||
INVESTORS BANCORP, INC. AND SUBSIDIARY | |||||||||
Selected Performance Ratios | |||||||||
For the Three Months Ended | For the Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||
Return on average assets | 1.35 % | 0.99 % | 1.14 % | 1.17 % | 0.82 % | ||||
Return on average equity | 13.05 % | 9.45 % | 11.13 % | 11.13 % | 8.35 % | ||||
Return on average tangible equity | 13.68 % | 9.86 % | 11.60 % | 11.62 % | 8.70 % | ||||
Interest rate spread | 2.83 % | 2.81 % | 2.76 % | 2.81 % | 2.56 % | ||||
Net interest margin | 3.00 % | 2.99 % | 2.98 % | 3.00 % | 2.80 % | ||||
Efficiency ratio | 51.25 % | 62.70 % | 60.90 % | 54.55 % | 55.07 % | ||||
Non-interest expense to average total assets | 1.59 % | 1.94 % | 2.16 % | 1.70 % | 1.66 % | ||||
Average interest-earning assets to average interest-bearing liabilities | 1.35 | 1.33 | 1.29 | 1.33 | 1.25 | ||||
INVESTORS BANCORP, INC. AND SUBSIDIARY | |||||||||
Selected Financial Ratios and Other Data | |||||||||
December 31, | September 30, | December 31, | |||||||
Asset Quality Ratios: | |||||||||
Non-performing assets as a percent of total assets | 0.42 % | 0.33 % | 0.47 % | ||||||
Non-performing loans as a percent of total loans | 0.50 % | 0.39 % | 0.56 % | ||||||
Allowance for loan losses as a percent of non-accrual loans | 228.82 % | 344.61 % | 264.17 % | ||||||
Allowance for loan losses as a percent of total loans | 1.07 % | 1.20 % | 1.36 % | ||||||
Allowance for credit losses as a percent of total loans (1) | 1.13 % | 1.28 % | 1.44 % | ||||||
Capital Ratios: | |||||||||
Tier 1 Leverage Ratio (2) | 10.19 % | 10.24 % | 10.14 % | ||||||
Common equity tier 1 risk-based (2) | 12.83 % | 12.83 % | 13.07 % | ||||||
Tier 1 Risk-Based Capital (2) | 12.83 % | 12.83 % | 13.07 % | ||||||
Total Risk-Based Capital (2) | 14.00 % | 14.11 % | 14.39 % | ||||||
Equity to total assets (period end) | 10.57 % | 10.44 % | 10.41 % | ||||||
Average equity to average assets | 10.37 % | 10.43 % | 10.20 % | ||||||
Tangible capital to tangible assets (3) | 10.14 % | 10.00 % | 10.03 % | ||||||
Book value per common share (3) | $ 12.36 | $ 12.03 | $ 11.43 | ||||||
Tangible book value per common share (3) | $ 11.81 | $ 11.47 | $ 10.97 | ||||||
Other Data: | |||||||||
Number of full service offices | 154 | 154 | 156 | ||||||
Full time equivalent employees | 1,643 | 1,707 | 1,806 | ||||||
(1) Allowance for credit losses includes allowance for loan losses and allowance for losses on unfunded commitments. | |||||||||
(2) Capital ratios as of December 31, 2021 are estimated. In accordance with regulatory capital rules, the Company elected an option to delay the estimated impact of CECL on its regulatory capital over a five-year transition period ending December 31, 2024. As a result, capital ratios as of December 31, 2021, September 30, 2021 and December 31, 2020 exclude the impact of the increased allowance for credit losses on loans, unfunded commitments and held-to-maturity debt securities attributed to the adoption of CECL. | |||||||||
(3) See Non-GAAP Reconciliation. | |||||||||
Investors Bancorp, Inc. | |||||
Non-GAAP Reconciliation | |||||
(Dollars in thousands, except share data) | |||||
Book Value and Tangible Book Value per Share Computation | |||||
December 31, 2021 | September 30, 2021 | December 31, 2020 | |||
Total stockholders' equity | $ 2,938,428 | 2,852,559 | 2,710,003 | ||
Goodwill and intangible assets | 131,993 | 133,237 | 109,633 | ||
Tangible stockholders' equity | $ 2,806,435 | 2,719,322 | 2,600,370 | ||
Book Value per Share Computation | |||||
Common stock issued | 361,869,872 | 361,869,872 | 361,869,872 | ||
Treasury shares | (113,872,606) | (114,184,985) | (113,940,656) | ||
Shares outstanding | 247,997,266 | 247,684,887 | 247,929,216 | ||
Unallocated ESOP shares | (10,347,370) | (10,539,779) | (10,895,052) | ||
Book value shares | 237,649,896 | 237,145,108 | 237,034,164 | ||
Book Value per Share | $ 12.36 | $ 12.03 | $ 11.43 | ||
Tangible Book Value per Share | $ 11.81 | $ 11.47 | $ 10.97 | ||
Total assets | $ 27,806,618 | 27,317,794 | 26,023,159 | ||
Goodwill and intangible assets | 131,993 | 133,237 | 109,633 | ||
Tangible assets | $ 27,674,625 | 27,184,557 | 25,913,526 | ||
Tangible capital to tangible assets | 10.14 % | 10.00 % | 10.03 % | ||
Contact: Marianne Wade
(973) 924-5100
investorrelations@investorsbank.com
View original content:https://www.prnewswire.com/news-releases/investors-bancorp-inc-announces-fourth-quarter-financial-results-and-cash-dividend-301469086.html
SOURCE Investors Bancorp, Inc.
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