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

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

PR Newswire

SHORT HILLS, N.J., Jan. 31, 2013

SHORT HILLS, N.J., Jan. 31, 2013 /PRNewswire/ --Investors Bancorp, Inc.
(NASDAQ: ISBC) ("Company"), the holding company for Investors Bank ("Bank"),
reported net income of $21.4 million for the three months ended December31,
2012 compared to net income of $21.1 million for the three months ended
December31, 2011. Basic and diluted earnings per share were $0.20 for the
three months ended December31, 2012 compared to $0.20 for the three months
ended December31, 2011. During the quarter ended December 31, 2012, the
Company completed the acquisition of Marathon National Bank of New York
("Marathon Bank"). The results for the quarter ended December31, 2012
include one-time expenses related to the acquisitions of $4.4 million net of
tax. Excluding these expenses, basic and diluted earnings per share would
have been $0.24 for the three months ended December31, 2012 and return on
average tangible equity would have been 10.69%.

Net income for the year ended December31, 2012 was $88.8 million compared to
net income of $78.9 million for the year ended December31, 2011. Basic and
diluted earnings per share were $0.83 and $0.82 respectively, for the year
ended December31, 2012 compared to basic and diluted of $0.73 for the year
ended December31, 2011. The results for the year ended December31, 2012
include one-time expenses related to the acquisitions of Brooklyn Federal
Savings Bank ("Brooklyn Federal") and Marathon Bank of $8.1 million, net of
tax. Excluding these expenses, basic and diluted earnings per share would
have been $0.90 for the twelve months ended December31, 2012.

The Company announced today that the Board of Directors has declared a cash
dividend of $0.05 per share to stockholders of record as of February 11, 2013,
payable on February 25, 2013. This is the Company's second dividend since
completing its initial public stock offering in October 2005. The majority of
the outstanding stock of the Company is owned by Investors Bancorp MHC, a
mutual holding company, which will receive the dividend payment along with the
public shareholders.

Commenting on the results of the quarter, Kevin Cummings, President and CEO
stated "This has been a very busy quarter for the Company. From an earnings
perspective, excluding acquisition related charges, Investors recorded a
strong quarter with earnings per share of $0.24 compared to $0.20 for the
prior year quarter. In addition, we experienced good loan growth during the
quarter and our credit quality continued to improve with non-performing loans
to total loans decreasing to 1.31% compared to 1.44% at September 30, 2012."

Mr. Cummings also commented on the Company's exposure to superstorm Sandy, "We
continue to work with borrowers and those severely impacted as a result of the
storm. It is still too soon to know the exact extent of the financial impact
from the storm, however, due to the amount of loans we have in the affected
areas along the coastline, we felt it prudent to provide credit reserves of
$5.5 million for storm-related losses. We will continue to monitor our
exposure to these loans."

Regarding the Company's acquisition strategy, Mr. Cummings added, "The
integration of Marathon Bank into Investors is progressing well and we are
excited about our recently announced acquisition of Roma Financial Corporation
which will expand our retail bank footprint into new markets in New Jersey."

The following represents performance highlights and significant events that
occurred during the period:

  oThe Company completed the acquisition of Marathon Bank on October 15, 2012
    which added $777.5 million in deposits and $558.5 million in net loans and
    resulted in $38.4 million of goodwill.

  oNet loans increased $1.51 billion, or 17.2%, to $10.31 billion at
    December31, 2012 from $8.79 billion at December 31, 2011. During the year
    ended December 31, 2012, we originated $1.29 billion in multi-family loans
    and $458.9 million in commercial real estate loans. The acquisitions of
    Marathon Bank and Brooklyn Federal added approximately $558.5 million and
    $71.3 million, respectively of net loans. As of December 31, 2012, the
    commercial loan portfolio exceeds 51% of total loans.

  oDeposits increased by $1.41 billion, or 19.1% to $8.77 billion at
    December31, 2012 from $7.36 billion at December 31, 2011. Core deposits
    increased $1.78 billion or 44.3% from the prior year end. The
    acquisitions of Marathon Bank and Brooklyn Federal contributed $777.5
    million and $385.9 million, respectively of deposits in total. As of
    December 31, 2012, core deposits exceeds 66% of total deposits.

  oEfficiency ratio was 53.1% for the three months ended December31, 2012
    and 42.7% for the three months ended December31, 2011. Excluding
    one-time expenses related to the acquisitions the efficiency ratio was
    46.6% for the three months ended December31, 2012

  oNet interest margin for the three months ended December31, 2012 was
    3.51%. This represents an increase of 15 basis points compared to prior
    year end and an increase of 16 basis point from the September 30, 2012
    linked quarter.

Comparison of Operating Results

Interest and Dividend Income

Total interest and dividend income increased by $9.5 million, or 7.9%, to
$130.2 million for the three months ended December31, 2012 from $120.7
million for the three months ended December31, 2011. This increase is
attributed to the average balance of interest-earning assets increasing $1.49
billion or 14.7%, to $11.57 billion for the three months ended December31,
2012 from $10.09 billion for the three months ended December31, 2011 due to
organic growth and acquisitions. This was partially offset by the weighted
average yield on interest-earning assets decreasing 28 basis points to 4.50%
for the three months ended December31, 2012 compared to 4.78% for the three
months ended December31, 2011.

Interest income on loans increased by $9.7 million, or 8.7%, to $120.8 million
for the three months ended December31, 2012 from $111.1 million for the three
months ended December31, 2011, reflecting a $1.06 billion or 12.1%, increase
in the average balance of net loans to $9.85 billion for the three months
ended December31, 2012 from $8.79 billion for the three months ended
December31, 2011. The increase is primarily attributed to the average balance
of multi-family loans and commercial real estate loans increasing $842.6
million and $447.8 million, respectively as we continue to focus on
diversifying our loan portfolio by adding more multi-family loans and
commercial real estate loans. This was partially offset by the decrease in the
average balance of residential loans and construction loans of $201.6 million
and $62.0 million, respectively for the three months ended December31, 2012.
In addition, we recorded $3.4 million in loan prepayment fees in interest
income for the three months ended December31, 2012 compared to $923,000 for
the three months ended December31, 2011. This was partially offset by a 15
basis point decrease in the average yield on net loans to 4.90% for the three
months ended December31, 2012 from 5.05% for the three months ended
December31, 2011, as lower rates on new and refinanced loans reflect the
current interest rate environment.

Interest income on all other interest-earning assets, excluding loans,
decreased by $165,000, or 1.7%, to $9.4 million for the three months ended
December31, 2012 from $9.5 million for the three months ended December31,
2011. The decrease is attributed to the weighted average yield on
interest-earning assets, excluding loans, decreasing by 77 basis points to
2.18% for the three months ended December31, 2012 compared to 2.95% for the
three months ended December31, 2011 reflecting the lower interest rate
environment. This was partially offset by a $426.7 million increase in the
average balance of all other interest-earning assets, excluding loans, to
$1.72 billion for the three months ended December31, 2012 from $1.29 billion
for the three months ended December31, 2011.

Total interest and dividend income increased by $22.6 million or 4.8%, to
$496.2 million million for the year ended December31, 2012 from $473.6
million for the year ended December31, 2011. This increase is attributed to
the average balance of interest-earning assets increasing $1.27 billion, or
13.1%, to $10.96 billion for the year ended December31, 2012 from $9.70
billion for the year ended December31, 2011. This was partially offset by
the weighted average yield on interest-earning assets decreasing 35 basis
points to 4.53% for the year ended December31, 2012 compared to 4.88% for the
year ended December31, 2011.

Interest income on loans increased by $20.8 million, or 4.8% to $455.2 million
for the year ended December31, 2012 from $434.4 million for the year ended
December31, 2011, reflecting a $810.5 million, or 9.6%, increase in the
average balance of net loans to $9.27 billion for the year ended December31,
2012 from $8.46 billion for the year ended December31, 2011. The increase is
primarily attributed to the average balance of multi-family loans and
commercial real estate loans increasing $693.3 million and $236.7 million,
respectively as we continue to focus on diversifying our loan portfolio by
adding more multi-family loans and commercial real estate loans. In addition,
we recorded $8.8 million in loan prepayment fees in interest income for the
year ended December31, 2012 compared to $2.6 million for the year ended
December31, 2011. This was offset by the decrease in the average balance of
construction and residential loans of $72.2 million and $63.1 million
respectively, for the year ended December31, 2012 and a 22 basis point
decrease in the average yield on net loans to 4.91% for the year ended
December31, 2012 from 5.13% for the year ended December31, 2011, as lower
rates on new and refinanced loans reflect the current interest rate
environment.

Interest income on all other interest-earning assets, excluding loans,
increased by $1.8 million, or 4.5%, to $41.0 million for the year ended
December31, 2012 from $39.2 million for the year ended December31, 2011.
This increase reflected a $459.1 million increase in the average balance of
all other interest-earning assets, excluding loans, to $1.69 billion for the
year ended December31, 2012 from $1.23 billion for the year ended
December31, 2011. This was offset by the weighted average yield on
interest-earning assets, excluding loans, decreasing by 76 basis points to
2.42% for the year ended December31, 2012 compared to 3.18% for the year
ended December31, 2011 reflecting the current interest rate environment.

Interest Expense

Total interest expense decreased by $7.3 million, or 20.2%, to $28.6 million
for the three months ended December31, 2012 from $35.9 million for the three
months ended December31, 2011. This decrease is attributed to the weighted
average cost of total interest-bearing liabilities decreasing 46 basis points
to 1.13% for the three months ended December31, 2012 compared to 1.59% for
the three months ended December31, 2011. This was partially offset by the
average balance of total interest-bearing liabilities increasing by $1.06
billion, or 11.7%, to $10.11 billion for the three months ended December31,
2012 from $9.05 billion for the three months ended December31, 2011.

Interest expense on interest-bearing deposits decreased $6.0 million, or 30.0%
to $14.0 million for the three months ended December31, 2012 from $20.0
million for the three months ended December31, 2011. This decrease is
attributed to a 44 basis point decrease in the average cost of
interest-bearing deposits to 0.71% for the three months ended December31,
2012 from 1.15% for the three months ended December31, 2011 as deposit rates
reflect the lower interest rate environment. This was partially offset by the
average balance of total interest-bearing deposits increasing $905.9 million,
or 13.0% to $7.87 billion for the three months ended December31, 2012 from
$6.96 billion for the three months ended December31, 2011. Core deposit
accounts- savings, checking and money market outpaced average total
interest-bearing deposit growth as average core deposits increased $1.28
billion over the past year.

Interest expense on borrowed funds decreased by $1.2 million or 7.8%, to $14.7
million for the three months ended December31, 2012 from $15.9 million for
the three months ended December31, 2011. This decrease is attributed to the
average cost of borrowed funds decreasing 44 basis points to 2.62% for the
three months ended December31, 2012 from 3.06% for the three months ended
December31, 2011 as maturing borrowings repriced to lower interest rates.
This was partially offset by the average balance of borrowed funds increasing
by $153.8 million or 7.4%, to $2.24 billion for the three months ended
December31, 2012 from $2.08 billion for the three months ended December31,
2011.

Total interest expense decreased by $21.0 million or 14.5%, to $123.4 million
for the year ended December31, 2012 from $144.5 million for the year ended
December31, 2011. This decrease is attributed to the weighted average cost
of total interest-bearing liabilities decreasing 39 basis points to 1.27% for
the year ended December31, 2012 compared to 1.66% for the year ended
December31, 2011. This was partially offset by the average balance of total
interest-bearing liabilities increasing by $1.02 billion, or 11.7%, to $9.72
billion for the year ended December31, 2012 from $8.70 billion for the year
ended December31, 2011.

Interest expense on interest-bearing deposits decreased $16.3 million or 20.4%
to $63.6 million for the year ended December31, 2012 from $79.9 million for
the year ended December31, 2011. This decrease is attributed to a 36 basis
point decrease in the average cost of interest-bearing deposits to 0.85% for
the year ended December31, 2012 from 1.21% for the year ended December31,
2011 as deposit rates reflect the lower interest rate environment. This was
partially offset by the average balance of total interest-bearing deposits
increasing $872.4 million, or 13.2% to $7.50 billion for the year ended
December31, 2012 from $6.63 billion for the year ended December31, 2011.
Core deposit accounts- savings, checking and money market outpaced average
total interest-bearing deposit growth as average core deposits increased $1.11
billion.

Interest expense on borrowed funds decreased by $4.7 million, or 7.3% to $59.9
million for the year ended December31, 2012 from $64.6 million for the year
ended December31, 2011. This decrease is attributed to the average cost of
borrowed funds decreasing 42 basis points to 2.69% for the year ended
December31, 2012 from 3.11% for the year ended December31, 2011 as maturing
borrowings repriced to lower interest rates. This was partially offset by the
average balance of borrowed funds increasing by $148.5 million or 7.2%, to
$2.22 billion for the year ended December31, 2012 from $2.08 billion for the
year ended December31, 2011.

Net Interest Income

Net interest income increased by $16.8 million, or 19.8%, to $101.5 million
for the three months ended December31, 2012 from $84.8 million for the three
months ended December31, 2011. The increase was primarily due to the average
balance of interest earning assets increasing $1.49 billion to $11.57 billion
at December31, 2012 compared to $10.09 billion at December31, 2011, as well
as a 46 basis point decrease in our cost of interest-bearing liabilities to
1.13% for the three months ended December31, 2012 from 1.59% for the three
months ended December31, 2011. These were partially offset by the average
balance of our interest earning liabilities increasing $1.06 billion to $10.11
billion at December31, 2012 compared to $9.05 billion at December31, 2011,
as well as the yield on our interest-earning assets decreasing 28 basis points
to 4.50% for the three months ended December31, 2012 from 4.78% for the three
months ended December31, 2011. While the yield on our interest earning assets
declined due to the lower interest rate environment, our cost of funds also
continued to fall resulting in our net interest margin increasing by 15 basis
points from 3.36% for the three months ended December31, 2011 to 3.51% for
the three months ended December31, 2012.

Net interest income increased by $43.7 million, or 13.3%, to $372.7 million
for the year ended December31, 2012 from $329.1 million for the year ended
December31, 2011. The increase was primarily due to the average balance of
interest earning assets increasing $1.27 billion to $10.96 billion at
December31, 2012 compared to $9.70 billion at December31, 2011, as well as a
39 basis point decrease in our cost of interest-bearing liabilities to 1.27%
for the year ended December31, 2012 from 1.66% for the year ended
December31, 2011. These were partially offset by the average balance of our
interest earning liabilities increasing $1.02 billion to $9.72 billion at
December31, 2012 compared to $8.70 billion at December31, 2011, as well as
the yield on our interest-earning assets decreasing 35 basis points to 4.53%
for the year ended December31, 2012 from 4.88% for the year ended
December31, 2011. While the yield on our interest earning assets declined due
to the lower interest rate environment, our cost of funds also continued to
fall resulting in our net interest margin increasing by one basis point from
3.39% for the year ended December31, 2011 to 3.40% for the year ended
December31, 2012.

Provision for Loan Losses

Our provision for loan losses was $17.0 million for the three months ended
December31, 2012 compared to $20.0 million for the three months ended
December31, 2011. For the three months ended December31, 2012, net
charge-offs were $6.1 million compared to $19.2 million for the three months
ended December31, 2011. The three months ended December31, 2011 included
the sale of approximately $19.8 million non performing loans resulting in
charge-offs of $10.6 million. The charge-offs for the three months ended
December31, 2012 included approximately $5.4 million of residential
charge-offs. For the year ended December31, 2012, our provision for loan
losses was $65.0 million compared to $75.5 million for the year ended
December31, 2011. For the year ended December31, 2012, net charge-offs were
$40.1 million compared to $49.2 million for the year ended December31, 2011.
Our provision for the quarter and year ended December31, 2012 is a result of
continued growth in the loan portfolio, specifically the multi-family and
commercial real estate portfolios; the inherent credit risk in our overall
portfolio, particularly the credit risk associated with commercial real estate
lending; the level of non-performing loans and delinquent loans caused by the
adverse economic and real estate conditions in our lending area; and the
impact of superstorm Sandy.

Our past due loans and non-accrual loans discussed below exclude certain
purchased credit impaired (PCI) loans, primarily consisting of loans recorded
in the acquisition of Marathon. Under U.S. GAAP, the PCI loans (acquired at a
discount that is due, in part, to credit quality) are not subject to
delinquency classification in the same manner as loans originated by
Investors. The following table sets forth non-accrual loans and accruing past
due loans (excluding PCI loans) on the dates indicated as well as certain
asset quality ratios.

             December 31,    September 30,   June 30,       March 31,      December 30,
             2012            2012            2012           2012           2011
             # of  Amount    # of  Amount    # of  Amount   # of  Amount   # of  Amount
             loans           loans           loans          loans          loans
             (Dollars in millions)
Accruing
past

due loans:
30 to 59
days past

due:

Residential
             114   $ 34.3    71    $ 23.6    65    $ 16.3   65    $ 14.9   80    $ 19.1
 and
consumer
         —       —       1       0.4     —       —      —       —      1       0.7
Construction
         1       0.2     2       3.1     4       4.6    2       16.0   2       0.8
Multi-family

Commercial
             6       16.5    1       0.3     1       0.2    2       1.8    2       1.5
 real
estate

Commercial
             3       0.6     —       —       —       —      —       —      —       —
 and
industrial

Total 30

 to
59
             124   $ 51.6    75    $ 27.4    70    $ 21.1   69    $ 32.7   85    $ 22.1

days past


due
60 to 89
days past

due:

Residential
             45    $ 11.9    43    $ 11.9    40    $ 8.4    25    $ 4.4    33    $ 10.0
 and
consumer
         —       —       —       —       1       0.2    —       —      —       —
Construction
         3       4.0     1       1.2     —       —      —       —      4       6.2
Multi-family

Commercial
             4       3.0     —       —       —       —      —       —      —       —
 real
estate

Commercial
             2       2.6     1       0.10    3       3.3    1       0.7    —       —
 and
industrial

Total 60

 to
89
             54      21.5    45      13.2    44      11.9   26      5.1    37      16.2

days past


due
 Total
accruing
             178   $ 73.1    120   $ 40.6    114   $ 33.0   95    $ 37.8   122   $ 38.3
 past
due loans
Non-accrual:

Residential
             354   $ 82.5    335   $ 81.2    328   $ 81.7   328   $ 86.1   321   $ 85.0
 and
consumer
         9       25.8    9       26.6    15      51.4   16      57.2   15      57.1
Construction
         5       11.1    6       12.0    6       13.3   4       6.2    —       —
Multi-family

Commercial
             4       0.8     1       0.8     1       1.2    2       0.4    1       0.1
 real
estate

Commercial
             2       0.4     1       0.1     2       0.8    —       —      —       —
 and
industrial
Total
Non-accrual  374   $ 120.6   352   $ 120.7   352   $ 148.4  350   $ 149.9  337   $ 142.2

Loans
Accruing
troubled

debt         22    $ 15.8    18    $ 14.8    17    $ 8.9    15    $ 8.4    15    $ 10.5
restructured

loans

Non-accrual

 loans           1.16%           1.28%           1.60%          1.64%          1.60 %
to total

 loans

Allowance
for

 loan
loss as a
                     117.92%         108.79%         86.58%         82.53%         82.44%
 percent
of


non-accrual

 loans

Allowance
for

 loan
losses as            1.36%           1.39%           1.38%          1.35%          1.32 %

 a
percent of

 total
loans

Total non-accrual loans decreased $21.6 million to $120.6 million at
December31, 2012 compared to $142.2 million at December 31, 2011 as we
continue to diligently resolve our troubled loans. Excluding the loans
acquired from Marathon Bank, our allowance for loan loss as a percent of total
loans is 1.44%. At December31, 2012, there were $27.7 million of loans
deemed trouble debt restructuring, of which $15.8 million were accruing and
$11.9 million were on non-accrual.

In late October 2012, the Company's primary market area was adversely impacted
by superstorm Sandy. The storm disrupted operations for many businesses in the
area and caused substantial property damage in our lending area. In response
to the storm, the Company waived late fees and provided payment deferrals to
borrowers impacted by the storm.

As of today, the Company has received requests from 45 residential loan
borrowers for a payment deferment. The total outstanding principal balance of
this pool of loans is $20.7 million with an average loan sizeof $460,000 and
a weighted average loan-to-value ratio of 53% based on appraised values at the
time of origination or a more recent valuation, if available.The properties
were primarilyin a flood zone and the Bank requires borrowers maintain flood
insurance. The Bank continues to stay in contact with these residential
borrowers to monitor their ability to continue to remit their monthly
payments.

The Bank has also contacted most of its commercial loan borrowers in the
affected area. At this time, eight commercial real estate borrowers with a
combined total outstanding loan balance of $17.8 million have reported losses
from the storm. At December 31, 2012, two of these loans totaling $1.7 million
were current; four of these loans totaling $13.8 million were 30 days
delinquent and two loans totaling $2.3 million were 60 days delinquent.

Although the number of borrowers that have reached out to the Company for
financial assistance has been limited, the highest impacted areas along the
coastline include 493 residential mortgage loans totaling approximately $275
million in principal outstanding with a loan-to-value of 62%. This represents
approximately 6% of our residential mortgage portfolio.

The Company has evaluated the impact of the storm relative to the adequacy of
the allowance for loan losses. Based on the Company's evaluation, there were
no loan charge-offs or specific losses identified to date. However, the
ultimate amount of loan losses relating to the storm is uncertain and
difficult to predict as information continues to be gathered. Due to the
heightened risk associated with the population of loans identified above, the
Company provided credit reserves of $5.5 million for possible credit losses
related to the storm as of December 31, 2012.

The allowance for loan losses increased by $24.9 million to $142.2 million at
December31, 2012 from $117.2 million at December 31, 2011. The increase in
our allowance for loan losses is due to the increased inherent credit risk in
our overall portfolio, particularly the credit risk associated with commercial
real estate lending; and delinquent loans caused by the adverse economic
conditions in our lending area and the continued growth in the multi-family
and commercial real estate loan portfolios. 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 impact of the
deterioration of the real estate and economic environments in our lending
area.

Non-Interest Income

Total non-interest income increased by $1.6 million, or 17.8% to $10.5 million
for the three months ended December31, 2012 from $8.9 million for the three
months ended December31, 2011. The increase is primarily attributed to the
gain on the sale of loans increasing $1.6 million to $5.0 million for the
three months ended December31, 2012.

Total non-interest income increased by $14.9 million, or 51.1% to $44.1
million for the year ended December31, 2012 from $29.2 million for the year
ended December31, 2011. The increase is primarily attributed to the gain on
the sale of loans increasing $11.1 million to $20.9 million. In addition,
fees and service charges relating primarily to the servicing of third party
loan portfolios as well as fees from commercial deposit and loan accounts
increased $2.1 million to $16.6 million for the year ended December31, 2012,
offset by a $977,000 impairment charge of mortgage servicing rights. Other
non- interest income increased by $1.6 million primarily from the fees
associated with the sale of non-deposit investment products.

Non-Interest Expenses

Total non-interest expenses increased by $19.4 million, or 48.6%, to $59.5
million for the three months ended December31, 2012 from $40.0 million for
the three months ended December31, 2011. This increase included $7.3 million
of acquisition related expenses. Compensation and fringe benefits increased
$11.6 million primarily as a result of the staff additions to support our
continued growth as well as including employees from the acquisitions of
Marathon Bank and Brooklyn Federal, normal merit increases and $5.0 million in
acquisition related expenses. Occupancy expense increased $1.8 million due to
costs associated with expanding our branch network and our new operations
center. Data processing expenses increased $3.2 million primarily due to the
growth in the number of branches and customer accounts and $2.4 million of
acquisition related expenses. In addition, our FDIC insurance premium
increased $1.5 million as the FDIC reclassified Investors Bank as a large
institution from a small institution which increased our assessment rate.

Total non-interest expenses increased by $49.4 million, or 31.4%, to $207.0
million for the year ended December31, 2012 from $157.6 million for the year
ended December31, 2011. This increase included $13.3 million acquisition
related expenses. Compensation and fringe benefits increased $23.5 million
primarily as a result of the staff additions to support our continued growth,
including employees from the acquisitions of Marathon Bank and Brooklyn
Federal, as well as normal merit increases and $6.4 million in acquisition
related expenses. Occupancy expense increased $6.8 million due to our
increased branch network and operations center as well as a one-time charge of
$3.0 million for the early termination of certain leased facilities and the
costs associated with expanding our branch network. Data processing expenses
increased $7.6 million primarily due to increased volume of accounts and $4.0
million in acquisition related expenses.

Income Taxes

Income tax expense was $14.2 million for the three months ended December31,
2012, representing a 39.85% effective tax rate compared to income tax expense
of $12.6 million for the three months ended December31, 2011 representing a
37.32% effective tax rate. The increase in the effective tax rate is
partially attributed to the non-deductible acquisition related expenses.

Income tax expense was $56.1 million for the year ended December31, 2012,
representing a 38.72% effective tax rate compared to income tax expense of
$46.3 million for the year ended December31, 2011 representing a 36.98%
effective tax rate. The increase in the effective tax rate is partially
attributed to the non-deductible acquisition related expenses.

Balance Sheet Summary

Total assets increased by $2.02 billion, or 18.9%, to $12.72 billion at
December31, 2012 from $10.70 billion at December31, 2011. This increase was
largely the result of net loans, including loans held for sale, increasing
$1.52 billion to $10.34 billion at December31, 2012 from $8.81 billion at
December31, 2011 and a $401.6 million increase in available for sale
securities to $1.39 billion at December31, 2012 from $983.7 million at
December31, 2011.

Net loans, including loans held for sale, increased by $1.52 billion, or
17.3%, to $10.34 billion at December31, 2012 from $8.81 billion at
December31, 2011. For the year ended December31, 2012, we originated $1.29
billion in multi-family loans, $458.8 million in commercial real estate loans,
$139.8 million in commercial and industrial loans, $69.8 million in consumer
and other loans and $32.2 million in construction loans. This increase in
loans reflects our continued focus on generating multi-family and commercial
real estate loans, which was partially offset by pay downs and payoffs of
loans. The loans we originate and purchase are on properties located primarily
in New Jersey and New York. The net loans acquired from Marathon Bank and
Brooklyn Federal were approximately $558.5 million and $71.3 million,
respectively.

We originate residential mortgage loans through our mortgage subsidiary,
Investors Home Mortgage Co. For the year ended December31, 2012, Investors
Home Mortgage Co. originated $1.51 billion in residential mortgage loans of
which $811.2 million were for sale to third party investors and $694.0 million
were added to our portfolio. We also purchased mortgage loans from
correspondent entities including other banks and mortgage bankers. Our
agreements with these correspondent entities require them to originate loans
that adhere to our underwriting standards. During the year ended December31,
2012, we purchased loans totaling $638.8 million from these entities. In
addition, we acquired $177.5 million in loans from Brooklyn Federal and
subsequently sold $49.4 million of commercial real estate loans and an
additional $37.9 million of commercial real estate loans on a pass through
basis to a third party.

At December31, 2012, total loans were $10.44 billion and included $4.84
billion in residential loans, $3.00 billion in multi-family loans, $1.97
billion in commercial real estate loans, $224.8 million in construction loans,
$238.9 million in consumer and other loans and $169.3 million in commercial
and industrial loans.

Securities, in the aggregate, increased by $293.9 million, or 23.1%, to $1.57
billion at December31, 2012, from $1.27 billion at December31, 2011. The
increase in the portfolio was primarily due to the purchase of $760.7 million
of agency issued mortgage backed securities partially offset by sales, normal
pay downs or maturities during the year ended December31, 2012.

Intangible assets increased $60.0 million for the year ended December 31,
2012. The majority of the increase is attributed to $38.4 million in goodwill
and $5.0 million of core deposit intangible asset recorded in conjunction with
the Marathon Bank acquisition and $16.5 million in goodwill recorded in
conjunction with the Brooklyn Federal acquisition. The amount of stock we own
in the Federal Home Loan Bank (FHLB) increased by $33.7 million from $116.8
million at December31, 2011 to $150.5 million at December31, 2012 as a
result of an increase in our level of borrowings.

Deposits increased by $1.41 billion, or 19.1%, to $8.77 billion at
December31, 2012 from $7.36 billion at December31, 2011. This was attributed
to an increase in core deposits of $1.78 billion or 44.3%, partially offset by
a $375.9 million decrease in certificates of deposit. The majority of the
increase is related to acquisitions during the year in which Marathon Bank
contributed $777.5 million while Brooklyn Federal contributed $385.9 million
of deposits in total.

Borrowed funds increased $450.2 million, or 20.0%, to $2.71 billion at
December31, 2012 from $2.26 billion at December31, 2011 due to the funding
of our asset growth.

Stockholders' equity increased $99.4 million to $1.07 billion at December31,
2012 from $967.4 million at December 31, 2011. The increase is primarily
attributed to the $88.8 million of net income for the year ended December31,
2012 and $7.6 million as a result of the acquisition of Brooklyn Federal. In
addition, stockholder's equity was positively impacted by other comprehensive
income of $3.5 million and $1.4 million in ESOP and stock based compensation
expenses. This was partially offset by the declaration of a cash dividend of
$0.05 per common share that resulted in a decrease of $5.6 million in
stockholders' equity.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as
of December31, 2012 operates from its corporate headquarters in Short Hills,
New Jersey and 101 offices located throughout northern and central New Jersey
and New York.

Earnings Conference Call February 1, 2013 at 11:00 a.m. (ET)

The Company, as previously announced, will host an earnings conference call
Friday, February 1, 2013 at 11:00 a.m. (ET). The toll-free dial-in number is:
(877) 317-6016. A telephone replay will be available on February 1, 2013 from
1:00 p.m. (ET) through May 2, 2013 9:00 a.m. (ET). The replay number is (877)
344-7529 password 10023420. The conference call will also be simultaneously
webcast on the Company's website www.myinvestorsbank.comand archived for one
year.

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 our SEC filings,
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, 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.

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, which 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.



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2012 and 2011
                                                    December 31,  December 31,
Assets                                              2012          2011
                                                    (In thousands)
Cash and cash equivalents                         $ 155,153       90,139
Securities available-for-sale, at estimated fair    1,385,328     983,715
value
Securities held-to-maturity, net (estimated fair
value of
    $198,893 and $311,860 at December 31, 2012
    and 11
    respectively)                                  179,922       287,671
Loans receivable, net                               10,306,786    8,794,211
Loans held-for-sale                                 28,233        18,847
Federal Home Loan Bank stock                        150,501       116,813
Accrued interest receivable                        45,144        40,063
Other real estate owned                             8,093         3,081
Office properties and equipment, net                91,408        60,555
Net deferred tax asset                             150,006       133,526
Bank owned life insurance                         113,941       112,990
Intangible assets                                   99,222        39,225
Other assets                                        8,837         20,749
               Total assets                       $ 12,722,574    10,701,585
Liabilities and Stockholders' Equity
Liabilities:
    Deposits                                      $ 8,768,857     7,362,003
    Borrowed funds                                  2,705,652     2,255,486
    Advance payments by borrowers for taxes and     52,707        43,434
    insurance
    Other liabilities                               128,541       73,222
               Total liabilities                    11,655,757    9,734,145
Stockholders' equity:
    Preferred stock, $0.01 par value, 50,000,000
    authorized shares;
         none issued                                —             —
    Common stock, $0.01 par value, 200,000,000
    shares authorized;
         118,020,280 issued; 111,915,882 and
         110,937,672 outstanding
         at December 31, 2012 and 2011,             532           532
         respectively
    Additional paid-in capital                      533,858       536,408
    Retained earnings                               644,923       561,596
    Treasury stock, at cost; 6,104,398 and
    7,082,608 shares at
         December 31, 2012 and 2011, respectively   (73,692)      (87,375)
    Unallocated common stock held by the employee
    stock
         ownership plan                             (31,197)      (32,615)
    Accumulated other comprehensive loss            (7,607)       (11,106)
               Total stockholders' equity           1,066,817     967,440
               Total liabilities and              $ 12,722,574    10,701,585
               stockholders' equity



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
                            For the Three Months      For the Year
                            Ended December 31,        Ended December 31,
                            2012         2011         2012         2011
                            (Dollars in thousands, except per share data)
Interest and dividend
income:
 Loans receivable and     $ 120,783      111,126      455,221      434,377
 loans held-for-sale
 Securities:
     Government-sponsored
     enterprise             1            1            15           268
     obligations
     Mortgage-backed        6,637        7,031        30,167       29,341
     securities
     Equity securities      7            —            17           —
     available-for-sale
     Municipal bonds and    1,235        1,322        5,174        5,269
     other debt
 Interest-bearing           10           7            40           37
 deposits
 Federal Home Loan Bank     1,486        1,180        5,555        4,280
 stock
         Total interest
         and dividend       130,159      120,667      496,189      473,572
         income
Interest expense:
 Deposits                  13,961       19,986       63,582       79,889
 Secured borrowings        14,683       15,925       59,862       64,599
         Total interest     28,644       35,911       123,444      144,488
         expense
         Net interest       101,515      84,756       372,745      329,084
         income
Provision for loan          17,000       20,000       65,000       75,500
losses
         Net interest
         income after
         provision
             for loan       84,515       64,756       307,745      253,584
             losses
Non-interest income
 Fees and service charges   3,795        3,952        16,564       14,496
 Income on bank owned       886          707          2,778        3,139
 life insurance
 Gain on loan               4,992        3,350        20,866       9,736
 transactions, net
 Gain (loss) on             (11)         37           274          (257)
 securities transactions
 Loss on sale of other      (58)         (35)         (180)        (140)
 real estate owned, net
 Other income               869          883          3,810        2,196
         Total
         non-interest       10,473       8,894        44,112       29,170
         income
Non-interest expense
 Compensation and fringe    32,956       21,312       109,197      85,688
 benefits
 Advertising and            1,560        1,761        6,854        6,352
 promotional expense
 Office occupancy and       8,413        6,646        33,619       26,786
 equipment expense
 Federal insurance          3,400        1,950        10,770       9,300
 premiums
 Stationery, printing,      1,246        1,120        4,295        3,444
 supplies and telephone
 Professional fees          1,896        1,697        9,487        5,329
 Data processing service    5,297        2,093        15,901       8,252
 fees
 Other operating expenses   4,690        3,441        16,884       12,436
         Total
         non-interest       59,458       40,020       207,007      157,587
         expenses
         Income before
         income tax         35,530       33,630       144,850      125,167
         expense
Income tax expense         14,159       12,551       56,083       46,281
         Net income      $ 21,371       21,079       88,767       78,886
Basic earnings per share  $ 0.20         0.20         0.83         0.73
Diluted earnings per        0.20         0.20         0.82         0.73
share
Weighted average shares
outstanding:
 Basic                      107,443,387  106,731,854  107,371,685  107,839,000
 Diluted                    108,508,350  107,011,699  108,091,522  108,044,786



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Average Balance Sheet and Yield/Rate Information
                       For Three Months Ended
                       December 31, 2012                   December 31, 2011
                       Average                             Average
                                   Interest    Average                 Interest    Average
                       Outstanding                         Outstanding
                                   Earned/Paid Yield/Rate              Earned/Paid Yield/Rate
                       Balance                             Balance
                       (Dollars in thousands)
Interest-earning
assets:
 Interest-earning      $      $      0.03%       $      $      0.04%
 cash accounts         118,755        10               72,595       7
 Securities            1,292,606   5,163       1.60%       808,225     4,218       2.09%
 available-for-sale
 Securities            180,694     2,717       6.01%       303,686     4,136       5.45%
 held-to-maturity
 Net loans             9,854,541   120,783     4.90%       8,794,223   111,126     5.05%
 Federal Home Loan     127,986     1,486       4.64%       108,809     1,180       4.34%
 Bank stock
     Total
     interest-earning  11,574,582  130,159     4.50%       10,087,538  120,667     4.78%
     assets
Non-interest earning   545,752                             415,109
assets
     Total assets      $                                $   
                       12,120,334                          10,502,647
Interest-bearing
liabilities:
 Savings               $       $      0.45%       $       $      0.72%
                       1,653,466    1,848                1,260,764   2,262
 Interest-bearing      1,674,235   1,621       0.39%       1,232,006   1,656       0.54%
 checking
 Money market          1,527,031   1,838       0.48%       1,077,989   2,076       0.77%
 accounts
 Certificates of       3,013,228   8,654       1.15%       3,391,320   13,992      1.65%
 deposit
 Borrowed funds        2,238,159   14,683      2.62%       2,084,379   15,925      3.06%
     Total
     interest-bearing  10,106,119  28,644      1.13%       9,046,458   35,911      1.59%
     liabilities
Non-interest bearing   957,833                             499,308
liabilities
     Total             11,063,952                          9,545,766
     liabilities
Stockholders' equity   1,056,382                           956,881
     Total
     liabilities and   $                                $   
     stockholders'     12,120,334                          10,502,647
     equity
Net interest income                $                               $    
                                   101,515                            84,756
Net interest rate                              3.36%                               3.20%
spread
Net interest earning   $                               $    
assets                 1,468,463                           1,041,080
Net interest margin                            3.51%                               3.36%
Ratio of
interest-earning
assets to total
interest-
 bearing liabilities   1.15        X                       1.12        X



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Average Balance Sheet and Yield/Rate Information
                       For Twelve Months Ended
                       December 31, 2012                   December 31, 2011
                       Average                             Average
                                   Interest    Average                 Interest    Average
                       Outstanding                         Outstanding
                                   Earned/Paid Yield/Rate              Earned/Paid Yield/Rate
                       Balance                             Balance
                       (Dollars in thousands)
Interest-earning
assets:
 Interest-earning      $      $      0.04%       $       $      0.05%
 cash accounts         96,945      40                   70,089      35
 Securities            1,250,391   22,521      1.80%       692,664     15,431      2.23%
 available-for-sale
 Securities            221,524     12,852      5.80%       369,593     19,449      5.26%
 held-to-maturity
 Net loans             9,271,550   455,221     4.91%       8,461,030   434,377     5.13%
 Federal Home Loan     124,385     5,555       4.47%       101,764     4,280       4.21%
 Bank stock
     Total
     interest-earning  10,964,795  496,189     4.53%       9,695,140   473,572     4.88%
     assets
Non-interest earning   493,278                             411,009
assets
     Total assets      $                                 $ 
                       11,458,073                          10,106,149
Interest-bearing
liabilities:
 Savings               $        $       0.51%       $         $       0.79%
                       1,535,636   7,859                   1,230,093   9,713
 Interest-bearing      1,467,583   6,586       0.45%       1,075,694   5,999       0.56%
 checking
 Money market          1,342,366   7,937       0.59%       929,291     7,276       0.78%
 accounts
 Certificates of       3,155,041   41,200      1.31%       3,393,106   56,901      1.68%
 deposit
 Borrowed funds        2,224,126   59,862      2.69%       2,075,597   64,599      3.11%
     Total
     interest-bearing  9,724,752   123,444     1.27%       8,703,781   144,488     1.66%
     liabilities
Non-interest bearing   710,894                             466,875
liabilities
     Total             10,435,646                          9,170,656
     liabilities
Stockholders' equity   1,022,427                           935,493
     Total
     liabilities and   $                                 $ 
     stockholders'     11,458,073                          10,106,149
     equity
Net interest income                $                                 $  
                                   372,745                             329,084
Net interest rate                              3.26%                               3.22%
spread
Net interest earning   $                                $   
assets                 1,240,043                           991,359
Net interest margin                            3.40%                               3.39%
Ratio of
interest-earning
assets to total
interest-
 bearing liabilities   1.13        X                       1.11        X



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Selected Performance Ratios
                                       For the Three Months Ended
                                       December 31,
                                       2012                 2011
Return on average assets              0.71%                0.80%
Return on average equity              8.09%                8.81%
Return on average equity (1)          9.75%                8.81%
Return on average tangible equity      8.87%                9.19%
Return on average tangible equity (1) 10.69%               9.19%
Interest rate spread                   3.36%                3.20%
Net interest margin                    3.51%                3.36%
Efficiency ratio                      53.09%               42.73%
Efficiency ratio (2)                   46.59%               42.73%
Non-interest expense to average total  1.96%                1.52%
assets
Average interest-earning assets to
average
 interest-bearing liabilities        1.15                 1.12
                                       For the Year Ended
                                       December 31,
                                       2012                 2011
Return on average assets              0.77%                0.78%
Return on average equity              8.68%                8.43%
Return on average equity (1)          9.48%                8.43%
Return on average tangible equity      9.27%                8.80%
Return on average tangible equity (1) 10.12%               8.80%
Interest rate spread                   3.26%                3.22%
Net interest margin                    3.40%                3.39%
Efficiency ratio                      49.66%               43.99%
Efficiency ratio (2)                   46.47%               43.99%
Non-interest expense to average total  1.81%                1.56%
assets
Average interest-earning assets to
average
 interest-bearing liabilities        1.13                 1.11
(1) Excluding impact of Marathon Bank and Brooklyn Federal
one time acquisition charges
totaling $4.4 million and $8.1 million net of tax for the three months and
year ended December 31, 2012.
(2) Excluding impact of Marathon Bank and Brooklyn Federal
one time acquisition charges
totaling $7.3 million and $13.3 million for the three months and year ended
December 31, 2012.
INVESTORS BANCORP, INC. AND SUBSIDIARIES
Selected Financial Ratios and Other Data
                                       December 31,        December 31,
                                       2012                 2011
Asset Quality Ratios:
Non-performing assets as a percent of  1.14%                1.46%
total assets
Non-performing loans as a percent of   1.31%                1.72%
total loans
Allowance for loan losses as a percent 117.92%              82.44%
of non-accrual loans
Allowance for loan losses as a percent 1.36%                1.32%
of total loans
Capital Ratios:
Total risk-based capital (to risk      11.24%               13.07%
weighted assets) (2)
Tier 1 risk-based capital (to risk     9.98%                11.81%
weighted assets) (2)
Tier 1 leverage (core) capital (to     7.59%                8.21%
adjusted tangible assets) (2)
Equity to total assets (period end)    8.39%                9.04%
Average equity to average assets       8.92%                9.26%
Tangible capital (to tangible assets)  7.67%                8.71%
Book value per common share            $           $        
                                       9.81                  8.98
Other Data:
Number of full service offices         101                  81
Full time equivalent employees         1,193                959
(2) Ratios are for Investors Bank and do not include capital retained at the
holding company level.





SOURCE Investors Bancorp, Inc.

Website: http://www.myinvestorsbank.com
Contact: Domenick Cama, +1-973-924-5105, dcama@myinvestorsbank.com
 
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