EX-99.1 2 pressrelease12312021.htm EX-99.1 Document
Exhibit 99.1
investorsbancorp_logoa.jpg

101 JFK Parkway, Short Hills, NJ 07078
news release
                                          Contact: Marianne Wade
(973) 924-5100
investorrelations@investorsbank.com


Investors Bancorp, Inc. Announces Fourth Quarter Financial Results and Cash Dividend

Short Hills, N.J. - (PR NEWSWIRE) - January 26, 2022 - Investors Bancorp, Inc. (NASDAQ:ISBC) (“Company”), the holding company for Investors Bank (“Bank”), reported net income of $94.3 million, or $0.40 per diluted share, for the three months ended December 31, 2021 as compared to $66.9 million, or $0.28 per diluted share, for the three months ended September 30, 2021 and $75.1 million, or $0.32 per diluted share, for the three months ended December 31, 2020.

For the year ended December 31, 2021, net income totaled $313.3 million, or $1.33 per diluted share, compared to $221.6 million, or $0.94 per diluted share, for the year ended December 31, 2020.

The Company also announced today that its Board of Directors declared a cash dividend of $0.16 per share to be paid on February 25, 2022 for stockholders of record as of February 10, 2022.

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 1.17% and return on average tangible equity was 12% for the year ended 2021. Importantly, our balance sheet is better positioned for rising rates than it was during the last rising interest rate cycle.”

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.”

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Performance Highlights
•Total loans increased $692.7 million, or 3.2%, to $22.60 billion during the three months ended December 31, 2021. Commercial Real Estate and Multi Family loans increased $236.6 million, or 4.6% and $210.5 million, or 2.7% respectively. C&I loans increased $179.9 million, or 4.6%, during the three months ended December 31, 2021.
•Non-interest-bearing deposits increased $312.4 million, or 7.2%, during the three months ended December 31, 2021. The cost of interest-bearing deposits decreased 3 basis points to 0.37% 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% and 13.68% 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, or 1.2% of loans, compared to $496 million, or 2.3% 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. Approximately 96% 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% and 14.00%, 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.



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Financial Performance Overview
Fourth Quarter 2021 compared to Third Quarter 2021
For the fourth quarter of 2021, net income totaled $94.3 million, an increase of $27.4 million as compared to $66.9 million for the third quarter of 2021. The changes in net income on a sequential quarter basis are highlighted below.
Net interest income increased by $6.4 million, or 3.3%, as compared to the third quarter of 2021. Changes within interest income and expense categories were as follows:
•Interest and dividend income increased $3.8 million, or 1.6%, 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 to 3.93%.
•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 to 0.68% for the three months ended December 31, 2021. In addition, the average balance of total borrowed funds decreased $364.6 million, or 9.4%, to $3.50 billion for the three months ended December 31, 2021, while the average balance of interest-bearing deposits increased $743.3 million, or 4.8%, to $16.38 billion for the three months ended December 31, 2021.
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.
Total non-interest income was $15.4 million for the three months ended December 31, 2021, a decrease of $518,000, as compared to $16.0 million for the third quarter of 2021. The decrease in non-interest income was due primarily to decreases in other income and gain on loans of $1.3 million and $1.6 million, respectively, offset by increases of in gains on securities and fees and service charges of $1.4 million and $947,000, respectively.
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, while third quarter non-interest expenses included $10.2 million of debt extinguishment costs and $14.9 million of merger and acquisition related costs resulting from the recent Berkshire Bank transaction and the pending Citizens transaction. Excluding these items, non-interest expenses increased approximately $2.5 million driven primarily by advertising and promotion and office occupancy expenses.
Income tax expense was $34.2 million for the three months ended December 31, 2021 and $24.6 million for the three months ended September 30, 2021. The effective tax rate was 26.6% for the three months ended December 31, 2021 and 26.9% for the three months ended September 30, 2021.

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Fourth Quarter 2021 compared to Fourth Quarter 2020
For the fourth quarter of 2021, net income totaled $94.3 million, an increase of $19.2 million as compared to $75.1 million in the fourth quarter of 2020. The changes in net income on a year over year quarter basis are highlighted below.
On a year over year basis, fourth quarter of 2021 net interest income increased by $12.2 million, or 6.4%, as compared to the fourth quarter of 2020 due to:
•Interest expense decreased $15.1 million, or 30.7%, primarily attributed to the weighted average cost of interest-bearing liabilities, which decreased 32 basis points to 0.68% for the three months ended December 31, 2021. In addition, the average balance of interest-bearing deposits increased $233.2 million, or 1.4%, to $16.38 billion for the three months ended December 31, 2021.
•Interest and dividend income decreased $2.9 million, or 1.2%, to $235.0 million, primarily attributable to the weighted average yield on net loans which decreased 20 basis point to 3.93% and the weighted average yield on securities which decreased 27 basis points to 1.83%. 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 3.00% for the three months ended December 31, 2021 from 2.98% for the three months ended December 31, 2020, driven primarily by the lower cost of interest-bearing liabilities, partially offset by the lower yield on interest-earning assets.
Total non-interest income was $15.4 million for the three months ended December 31, 2021, a decrease of $30.4 million year over year. Included in non-interest income for the three months ended December 31, 2020 were $23.1 million of gains from sale-leaseback transactions. Excluding this item, non-interest income decreased $7.2 million, primarily due to a decrease of $5.4 million in gain on loans due to a lower volume of mortgage banking loan sales to third parties and a decrease in other income of $3.0 million, partially offset by an increase in fees and service charges of $1.2 million.
Total non-interest expenses were $110.9 million for the three months ended December 31, 2021, a decrease of $32.0 million compared to the three months ended December 31, 2020. Included in non-interest expenses for the fourth quarter 2021 were $1.5 million of merger and acquisition related costs from the pending Citizen’s transaction, while fourth quarter 2020 non-interest expenses included debt extinguishment costs of $22.8 million as well as $11.7 million of costs associated with the Company’s branch rationalization plans. Excluding these items, non-interest expenses increased approximately $1.0 million.
Income tax expense was $34.2 million for the three months ended December 31, 2021 and $19.3 million for the three months ended December 31, 2020. The effective tax rate was 26.6% for the three months ended December 31, 2021 and 20.4% for the three months ended December 31, 2020.

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Year Ended December 31, 2021 compared to Year Ended December 31, 2020
Net income increased by $91.8 million year over year to $313.3 million for the year ended December 31, 2021. The changes in net income on a year over year basis are highlighted below.
Net interest income increased by $45.3 million as compared to the year ended December 31, 2020 due to:
•Interest expense decreased by $107.6 million, or 42.2%, 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 to 0.77% for the year ended December 31, 2021. In addition, the average balance of total borrowed funds decreased $960.2 million, or 20.6%, to $3.70 billion for the year ended December 31, 2021 and the average balance of interest-bearing deposits decreased $508.2 million, or 3.2%, to $15.59 billion for the year ended December 31, 2021.
•Interest and dividend income decreased by $62.3 million, or 6.3%, 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 to 3.96%, and the weighted average yield on securities, which decreased 49 basis points to 1.92% 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 3.00% for the year ended December 31, 2021 from 2.80% for the year ended December 31, 2020, primarily driven by the lower cost of interest-bearing liabilities, partially offset by the lower yield on interest-earning assets.
Total non-interest income was $64.5 million for the year ended December 31, 2021, a decrease of $26.1 million as compared to the year ended December 31, 2020. Included in non-interest income for the year ended December 30, 2020 were $23.1 million of gains from sale-leaseback transactions. Excluding this item, non-interest income decreased $2.9 million, primarily due to a decrease of $9.3 million in gain on loans due to a lower volume of mortgage banking loan sales to third parties offset by increases of $4.2 in fees and service charges and $3.2 in other income.
Total non-interest expenses were $455.7 million for the year ended December 31, 2021, an increase of $6.2 million compared to the year ended December 31, 2020. This increase was driven by increases of $10.3 million in professional fees primarily driven by acquisition-related fees, $4.1 million in compensation and fringe benefit expense primarily related to incentive compensation and medical expenses, $3.3 million in data processing and communication expenses, $2.7 million in other operating expenses, offset by a decrease of $13.9 million in debt extinguishment costs.
Income tax expense was $115.1 million for the year ended December 31, 2021 compared to $75.0 million for the year ended December 31, 2020. The effective tax rate was 26.9% for the year ended December 31, 2021 and 25.3% for the year ended December 31, 2020.

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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 $23.0 million, compared to negative $13.0 million for the three months ended September 30, 2021 and negative $2.7 million for the three months ended December 31, 2020. Our provision was impacted by net loan charge-offs of $1.7 million for the three months ended December 31, 2021, net loan charge-offs of $252,000 for the three months ended September 30, 2021 and net loan recoveries of $2.1 million for the three months ended December 31, 2020. Our provision for credit losses was negative $48.7 million for the year ended December 31, 2021 compared to $70.2 million for the year ended December 31, 2020. Our provision was impacted by net loan recoveries of $541,000 for the year ended December 31, 2021 and net loan charge-offs of $10.7 million for the year ended December 31, 2020.
Total non-accrual loans were $105.2 million, or 0.47% of total loans, at December 31, 2021 compared to $76.5 million, or 0.35% of total loans, at September 30, 2021 and $107.1 million, or 0.51% of total loans, at December 31, 2020. For the three months ended December 31, 2021, the increase in non-accrual loans was driven by a previously disclosed multi-family potential problem loan totaling $35.8 million as of December 31, 2021 that was restructured and classified as a troubled debt restructuring and moved to non-accrual status in the fourth quarter. The borrower is performing in accordance with the modified terms. We continue to proactively work to resolve our non-accrual loans.
At December 31, 2021, there were $60.6 million of loans deemed as troubled debt restructured loans (“TDRs”), of which $35.8 million was a multi-family loan, $19.7 million were residential and consumer loans and $4.3 million were commercial real estate loans. TDRs of $7.6 million were classified as accruing and $53.1 million were classified as non-accrual at December 31, 2021.
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.
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 December 31, 2021September 30, 2021June 30, 2021March 31, 2021December 31, 2020
 # of loansamount# of loansamount# of loansamount# of loansamount# of loansamount
 (Dollars in millions)
Accruing past due loans:
30 to 59 days past due:
Residential and consumer47 $10.7 50 $12.3 62 $12.8 62 $13.2 84 $18.5 
Construction— — — — — — — — — — 
Multi-family7 14.0 9 11.5 8 16.2 10 19.2 5 7.3 
Commercial real estate7 15.6 9 19.5 2 0.5 8 11.1 8 9.5 
Commercial and industrial9 21.3 11 1.3 3 14.5 9 7.3 6 0.9 
Total 30 to 59 days past due70 61.6 79 44.6 75 44.0 89 50.8 103 36.2 
60 to 89 days past due:
Residential and consumer18 1.9 18 2.3 22 5.0 26 3.1 28 5.2 
Construction— — — — — — — — — — 
Multi-family2 3.0 4 8.2 4 10.2 1 3.4 — — 
Commercial real estate1 1.7 1 0.3 — — 2 2.6 5 2.3 
Commercial and industrial2 0.1 1 0.2 1 — 1 0.2 8 3.1 
Total 60 to 89 days past due23 6.7 24 11.0 27 15.2 30 9.3 41 10.6 
Total accruing past due loans93 $68.3 103 $55.6 102 $59.2 119 $60.1 144 $46.8 
Non-accrual:
Residential and consumer216 $38.3 231 $43.5 232 $42.8 239 $45.7 246 $46.4 
Construction— — — — — — — — — — 
Multi-family13 55.3 15 19.9 11 16.6 13 19.2 15 35.6 
Commercial real estate19 8.3 22 9.8 24 13.0 25 14.0 29 15.9 
Commercial and industrial15 3.3 16 3.3 13 5.2 15 4.4 21 9.2 
Total non-accrual loans263 $105.2 284 $76.5 280 $77.6 292 $83.3 311 $107.1 
Accruing troubled debt restructured loans44 $7.6 47 $8.1 49 $9.3 45 $9.1 47 $9.2 
Non-accrual loans to total loans0.47 %0.35 %0.36 %0.40 %0.51 %
Allowance for loan losses as a percent of non-accrual loans228.82 %344.61 %348.05 %340.60 %264.17 %
Allowance for loan losses as a percent of total loans1.07 %1.20 %1.26 %1.36 %1.36 %
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Balance Sheet Summary

Total assets increased $1.78 billion, or 6.9%, to $27.81 billion at December 31, 2021 from $26.02 billion December 31, 2020. Cash and cash equivalents increased $117.6 million to $288.0 million at December 31, 2021. Net loans increased $1.76 billion, or 8.6%, to $22.34 billion at December 31, 2021. Securities decreased $46.8 million, or 1.2%, to $4.00 billion at December 31, 2021.

The detail of the loan portfolio is below:
December 31, 2021September 30, 2021December 31, 2020
(In thousands)
Commercial Loans:
Multi-family loans$7,865,592 7,655,135 7,122,840 
Commercial real estate loans5,371,758 5,135,123 4,947,212 
Commercial and industrial loans4,113,792 3,933,926 3,575,641 
Construction loans550,950 509,620 404,367 
Total commercial loans17,902,092 17,233,804 16,050,060 
Residential mortgage loans3,929,170 3,930,683 4,119,894 
Consumer and other766,785 740,827 702,801 
Total loans22,598,047 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 $2.43 billion in multi-family loans, $1.27 billion in residential loans, $1.26 billion in commercial and industrial loans, $1.24 billion in commercial real estate loans, $170.6 million in construction loans and $118.2 million in consumer and other loans. In addition, we acquired $219 million of loans from Berkshire Bank. Our loans are primarily on properties and businesses located in New Jersey and New York.

In addition to the loans originated for our portfolio, we originated residential mortgage loans for sale to third parties totaling $145.0 million during the year ended December 31, 2021. As of December 31, 2021, loans held for sale were $809,000.

The allowance for loan losses decreased by $42.3 million to $240.7 million at December 31, 2021 from $283.0 million at December 31, 2020. The decrease reflects a negative provision for loan losses of $43.8 million, partially offset by an increase of $541,000 resulting from net recoveries and an increase of approximately $1.0 million from the initial allowance on loans identified as PCD which were acquired from Berkshire Bank. Our allowance for loan losses and related provision were affected by the improving current and forecasted economic conditions and commercial real estate prices. Future increases in the allowance for loan losses may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the current and forecasted economic conditions over the life of our loans. At December 31, 2021, our allowance for loan losses as a percent of total loans was 1.07%, a decrease from 1.36% at December 31, 2020 which was driven by the factors noted above.

Securities decreased by $46.8 million, or 1.2%, to $4.00 billion at December 31, 2021 from $4.04 billion at December 31, 2020. This decrease was primarily a result of paydowns and sales, partially offset by purchases.
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Deposits increased by $1.30 billion, or 6.7%, to $20.82 billion at December 31, 2021 from $19.53 billion at December 31, 2020 primarily driven by an increase in checking account deposits, partially offset by decreases in time deposits and money market deposits. Checking account deposits increased $2.22 billion to $11.93 billion at December 31, 2021 from $9.71 billion at December 31, 2020. Core deposits (savings, checking and money market) represented approximately 90% of our total deposit portfolio at December 31, 2021 compared to 86% at December 31, 2020. Non interest checking increased $995.2 million, or 27.2% to $4.66 billion for the year ended December 31, 2021

Borrowed funds increased by $239.2 million, or 7.3%, to $3.54 billion at December 31, 2021 from $3.30 billion at December 31, 2020 to support balance sheet growth.

Stockholders’ equity increased by $228.4 million to $2.94 billion at December 31, 2021 from $2.71 billion at December 31, 2020, primarily attributable to net income of $313.3 million, share-based plan activity of $32.1 million and other comprehensive income of $33.7 million for the year ended December 31, 2021. These increases were partially offset by cash dividends of $0.56 per share totaling $138.6 million and the repurchase of approximately 1.0 million shares of common stock for $12.1 million during the year ended December 31, 2021. The Company remains above the FDIC’s “well capitalized” standards, with a Common Equity Tier 1 Risk-Based Ratio of 12.83% at December 31, 2021.

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
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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.
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INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
December 31,
2021		September 30,
2021		December 31, 2020
(unaudited)(unaudited)(audited)
Assets(Dollars in thousands)
Cash and cash equivalents$287,990 670,295 170,432 
Equity securities8,194 7,673 36,000 
Debt securities available-for-sale, at estimated fair value2,393,540 2,531,573 2,758,437 
Debt securities held-to-maturity, net (estimated fair value of $1,651,504, $1,336,957 and $1,320,872 at December 31, 2021, September 30, 2021 and December 31, 2020, respectively)1,593,785 1,272,683 1,247,853 
Loans receivable, net22,342,612 21,624,728 20,580,451 
Loans held-for-sale809 397 30,357 
Federal Home Loan Bank stock176,480 177,058 159,829 
Accrued interest receivable78,636 81,549 79,705 
Other real estate owned and other repossessed assets2,882 5,849 7,115 
Office properties and equipment, net129,288 132,259 139,663 
Operating lease right-of-use assets199,603 203,522 199,981 
Net deferred tax asset87,251 109,588 116,805 
Bank owned life insurance229,358 227,822 223,714 
Goodwill and intangible assets131,993 133,237 109,633 
Other assets144,197 139,561 163,184 
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 funds3,535,038 3,534,536 3,295,790 
Advance payments by borrowers for taxes and insurance137,438 152,407 115,729 
Operating lease liabilities212,678 216,374 212,559 
Other liabilities158,398 161,494 163,659 
Total liabilities24,868,190 24,465,235 23,313,156 
Stockholders’ equity2,938,428 2,852,559 2,710,003 
Total liabilities and stockholders’ equity$27,806,618 27,317,794 26,023,159 

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INVESTORS BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Operations
For the Three Months EndedFor the Year Ended
December 31,
2021		September 30,
2021		December 31,
2020		December 31,
2021		December 31,
2020
(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 obligations571 567 523 2,237 1,517 
Mortgage-backed securities13,800 13,321 16,674 56,539 77,925 
Equity 64 65 252 458 362 
Municipal bonds and other debt3,443 3,601 3,552 14,039 13,480 
Interest-bearing deposits281 268 93 648 1,460 
Federal Home Loan Bank stock2,130 2,234 2,858 8,546 14,739 
Total interest and dividend income234,998 231,245 237,880 918,638 980,894 
Interest expense:
Deposits15,036 15,683 29,310 67,905 155,589 
Borrowed funds18,994 20,960 19,776 79,718 99,619 
Total interest expense34,030 36,643 49,086 147,623 255,208 
Net interest income200,968 194,602 188,794 771,015 725,686 
Provision for credit losses(22,999)(13,015)(2,682)(48,676)70,158 
Net interest income after provision for credit losses223,967 207,617 191,476 819,691 655,528 
Non-interest income:
Fees and service charges6,143 5,196 4,935 22,080 17,916 
Income on bank owned life insurance1,536 1,508 1,579 6,548 6,638 
Gain on loans, net92 1,698 5,538 6,911 16,226 
Gain (loss) on securities, net503 (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 income7,160 8,447 10,184 28,332 25,149 
Total non-interest income15,434 15,952 45,792 64,463 90,518 
Non-interest expense:
Compensation and fringe benefits61,022 60,231 64,891 245,065 240,970 
Advertising and promotional expense4,346 3,111 2,645 12,083 9,551 
Office occupancy and equipment expense18,105 23,535 28,451 76,788 77,754 
Federal insurance premiums2,800 2,950 3,550 12,350 14,276 
General and administrative624 706 455 2,254 2,133 
Professional fees5,586 12,925 3,834 26,483 16,220 
Data processing and communication9,729 9,985 9,004 39,042 35,702 
Debt extinguishment— 10,159 22,807 10,159 24,098 
Other operating expenses8,703 8,424 7,230 31,517 28,801 
Total non-interest expenses110,915 132,026 142,867 455,741 449,505 
Income before income tax expense128,486 91,543 94,401 428,413 296,541 
Income tax expense34,169 24,609 19,256 115,080 74,961 
Net income$94,317 66,934 75,145 313,333 221,580 
Basic earnings per share$0.400.28 0.32 1.33 0.94 
Diluted earnings per share$0.400.28 0.32 1.33 0.94 
Basic weighted average shares outstanding235,935,642 235,602,277 236,679,655 235,315,487 235,761,457 
Diluted weighted average shares outstanding 237,415,493 236,413,268 236,757,361 236,436,081 235,838,808 
12

INVESTORS BANCORP, INC. AND SUBSIDIARY
Average Balance Sheet and Yield/Rate Information
For the Three Months Ended
December 31, 2021September 30, 2021December 31, 2020
Average Outstanding BalanceInterest Earned/PaidWeighted Average Yield/RateAverage Outstanding BalanceInterest Earned/PaidWeighted Average Yield/RateAverage Outstanding BalanceInterest Earned/PaidWeighted Average Yield/Rate
(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 securities7,758 64 3.30 %8,747 65 2.97 %25,915 252 3.89 %
Debt securities available-for-sale2,439,916 9,098 1.49 %2,501,016 9,683 1.55 %2,717,128 12,502 1.84 %
Debt securities held-to-maturity1,449,625 8,716 2.41 %1,174,563 7,806 2.66 %1,264,286 8,247 2.61 %
Net loans21,829,427 214,709 3.93 %21,284,262 211,189 3.97 %20,695,149 213,928 4.13 %
Federal Home Loan Bank stock175,525 2,130 4.85 %192,111 2,234 4.65 %175,097 2,858 6.53 %
Total interest-earning assets26,761,215 234,998 3.51 %26,005,064 231,245 3.56 %25,332,561 237,880 3.76 %
Non-interest earning assets1,122,901 1,151,571 1,144,838 
Total assets$27,884,116 $27,156,635 $26,477,399 
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 checking7,331,456 7,090 0.39 %6,658,248 6,833 0.41 %6,117,420 7,823 0.51 %
Money market accounts4,785,618 4,371 0.37 %4,613,066 4,475 0.39 %4,949,313 9,944 0.80 %
Certificates of deposit2,214,590 2,249 0.41 %2,299,850 2,994 0.52 %3,035,484 8,992 1.18 %
 Total interest-bearing deposits16,375,380 15,036 0.37 %15,632,057 15,683 0.40 %16,142,171 29,310 0.73 %
Borrowed funds3,498,840 18,994 2.17 %3,863,460 20,960 2.17 %3,470,338 19,776 2.28 %
Total interest-bearing liabilities19,874,220 34,030 0.68 %19,495,517 36,643 0.75 %19,612,509 49,086 1.00 %
Non-interest-bearing liabilities5,118,684 4,827,551 4,164,206 
Total liabilities24,992,904 24,323,068 23,776,715 
Stockholders’ equity2,891,212 2,833,567 2,700,684 
Total liabilities and stockholders’ equity$27,884,116 $27,156,635 $26,477,399 
Net interest income$200,968 $194,602 $188,794 
Net interest rate spread2.83 %2.81 %2.76 %
Net interest earning assets$6,886,995 $6,509,547 $5,720,052 
Net interest margin3.00 %2.99 %2.98 %
Ratio of interest-earning assets to total interest-bearing liabilities1.35 X1.33 X1.29 X
13

INVESTORS BANCORP, INC. AND SUBSIDIARY
Average Balance Sheet and Yield/Rate Information
For the Year Ended
December 31, 2021December 31, 2020
Average Outstanding BalanceInterest Earned/PaidWeighted Average Yield/RateAverage Outstanding BalanceInterest Earned/PaidWeighted Average Yield/Rate
(Dollars in thousands)
Interest-earning assets:
Interest-earning cash accounts$587,691 648 0.11 %$773,177 1,460 0.19 %
Equity securities16,222 458 2.82 %11,365 362 3.19 %
Debt securities available-for-sale2,543,274 40,636 1.60 %2,672,537 58,873 2.20 %
Debt securities held-to-maturity1,254,917 32,179 2.56 %1,184,984 34,049 2.87 %
Net loans21,099,992 836,171 3.96 %21,040,964 871,411 4.14 %
Federal Home Loan Bank stock183,001 8,546 4.67 %229,120 14,739 6.43 %
Total interest-earning assets25,685,097 918,638 3.58 %25,912,147 980,894 3.79 %
Non-interest earning assets1,133,861 1,096,400 
Total assets$26,818,958 $27,008,547 
Interest-bearing liabilities:
Savings$2,032,004 5,591 0.28 %$2,039,686 12,056 0.59 %
Interest-bearing checking6,581,074 27,488 0.42 %5,869,801 42,014 0.72 %
Money market accounts4,615,127 20,508 0.44 %4,367,498 42,568 0.97 %
Certificates of deposit2,359,645 14,318 0.61 %3,819,029 58,951 1.54 %
 Total interest bearing deposits15,587,850 67,905 0.44 %16,096,014 155,589 0.97 %
Borrowed funds3,704,903 79,718 2.15 %4,665,094 99,619 2.14 %
Total interest-bearing liabilities19,292,753 147,623 0.77 %20,761,108 255,208 1.23 %
Non-interest-bearing liabilities4,711,391 3,594,290 
Total liabilities24,004,144 24,355,398 
Stockholders’ equity2,814,814 2,653,149 
Total liabilities and stockholders’ equity$26,818,958 $27,008,547 
Net interest income$771,015 $725,686 
Net interest rate spread2.81 %2.56 %
Net interest earning assets$6,392,344 $5,151,039 
Net interest margin3.00 %2.80 %
Ratio of interest-earning assets to total interest-bearing liabilities1.33 X1.25 X



14

INVESTORS BANCORP, INC. AND SUBSIDIARY
Selected Performance Ratios
For the Three Months EndedFor the Year Ended
December 31,
2021		September 30,
2021		December 31,
2020		December 31,
2021		December 31,
2020
Return on average assets1.35 %0.99 %1.14 %1.17 %0.82 %
Return on average equity13.05 %9.45 %11.13 %11.13 %8.35 %
Return on average tangible equity13.68 %9.86 %11.60 %11.62 %8.70 %
Interest rate spread2.83 %2.81 %2.76 %2.81 %2.56 %
Net interest margin3.00 %2.99 %2.98 %3.00 %2.80 %
Efficiency ratio51.25 %62.70 %60.90 %54.55 %55.07 %
Non-interest expense to average total assets1.59 %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,
2021		September 30,
2021		December 31,
2020
Asset Quality Ratios:
Non-performing assets as a percent of total assets0.42 %0.33 %0.47 %
Non-performing loans as a percent of total loans0.50 %0.39 %0.56 %
Allowance for loan losses as a percent of non-accrual loans228.82 %344.61 %264.17 %
Allowance for loan losses as a percent of total loans1.07 %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 assets10.37 %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 offices154 154 156 
Full time equivalent employees1,643 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.
15

Investors Bancorp, Inc.
Non-GAAP Reconciliation
(Dollars in thousands, except share data)
Book Value and Tangible Book Value per Share Computation
December 31, 2021September 30, 2021December 31, 2020
Total stockholders’ equity$2,938,428 2,852,559 2,710,003 
Goodwill and intangible assets131,993 133,237 109,633 
Tangible stockholders’ equity$2,806,435 2,719,322 2,600,370 
Book Value per Share Computation
Common stock issued361,869,872 361,869,872 361,869,872 
Treasury shares(113,872,606)(114,184,985)(113,940,656)
Shares outstanding247,997,266 247,684,887 247,929,216 
Unallocated ESOP shares(10,347,370)(10,539,779)(10,895,052)
Book value shares237,649,896 237,145,108 237,034,164 
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 assets131,993 133,237 109,633 
Tangible assets$27,674,625 27,184,557 25,913,526 
Tangible capital to tangible assets10.14 %10.00 %10.03 %
16