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Investors Bancorp, Inc. Announces Fourth Quarter Financial Results and $0.05 Cash Dividend

 Investors Bancorp, Inc. Announces Fourth Quarter Financial Results and $0.05
                                Cash Dividend

PR Newswire

SHORT HILLS, N.J., Jan. 30, 2014

SHORT HILLS, N.J., Jan. 30, 2014 /PRNewswire/ --Investors Bancorp, Inc.
(NASDAQ: ISBC) ("Company"), the holding company for Investors Bank ("Bank"),
reported net income of $27.5 million for the three months ended December31,
2013 compared to net income of $21.4 million for the three months ended
December31, 2012. Basic and diluted earnings per share was $0.24 for the
three months ended December31, 2013 compared to $0.20 for the three months
ended December31, 2012.

Net income for the year ended December31, 2013 was $112.0 million compared to
net income of $88.8 million for the year ended December31, 2012. Basic and
diluted earnings per share were $1.02 and $1.01, respectively, for the year
ended December31, 2013 compared to $0.83 and $0.82, respectively for the year
ended December31, 2012.

On December 6, 2013, the Company completed the acquisition of Roma Financial
Corporation ("Roma Financial"). In connection with the acquisition, the
Company issued 25.9 million shares of its common stock, of which 6.4 million
shares went to Roma's public stockholders and 19.5 million shares were issued
to Investors Bancorp MHC. The results for the quarter ended December 31, 2013
include one-time expenses related to the acquisition of $3.5 million, net of
tax, and a non-cash other than temporary impairment charge of approximately
$600,000, net of tax, on a trust preferred security investment.

Kevin Cummings, President and CEO said, "2013 was a memorable year for
Investors. We completed the acquisition of Roma Financial, achieved record
earnings for the Company and we announced our second step stock offering.
This is a busy time here at Investors and we are excited about what the future
holds for our Company."

The Company announced today that the Board of Directors declared a cash
dividend of $0.05 per share to stockholders of record as of February 10,
2014, payable on February 25, 2014.

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

  oOn December 18, 2013, the Company announced its second-step offering in
    which it plans to issue new shares of common stock and expects to complete
    the transaction during the second quarter of 2014.

  oThe Company completed the acquisition of Roma Financial on December 6,
    2013 which added $1.34 billion in deposits and $991.0 million in net
    loans.

  oOn January 10, 2014, the Company completed its acquisition of Gateway
    Community Financial Corp. ("Gateway"). Gateway operates 4 branches in
    Gloucester County, New Jersey. As of September 30, 2013, Gateway had
    approximately $301 million in assets and $269 million in deposits.

  oNet loans increased $2.58 billion, or 25.0%, to $12.88 billion at
    December31, 2013 from $10.31 billion at December31, 2012. For the year
    ended December31, 2013, we originated $1.45 billion in residential loans,
    $1.59 billion in multi-family loans, $454.2 million in commercial real
    estate loans, $251.0 million in commercial and industrial loans and $79.6
    million in consumer loans.

  oNet interest margin for the three months ended December31, 2013 was
    3.41%. This represents a decrease of 10 basis points compared to
    December31, 2012 and an increase of 3 basis points compared to the third
    quarter of 2013.

  oDeposits increased by $1.95 billion from $8.77 billion at December31,
    2012 to $10.72 billion at December31, 2013, core deposits accounts
    (savings, checking and money market accounts) increased $1.53 billion or
    26.4% from December31, 2012. As of December31, 2013, core deposits
    represents approximately 68% of total deposits.

Comparison of Operating Results

Interest and Dividend Income

Total interest and dividend income increased by $15.9 million, or 12.2%, to
$146.0 million for the three months ended December31, 2013 from $130.2
million for the three months ended December31, 2012. This increase is
attributed to the average balance of interest-earning assets increasing $2.30
billion or 19.9%, to $13.88 billion for the three months ended December31,
2013 from $11.58 billion for the three months ended December31, 2012 due to
organic growth and acquisitions. This was partially offset by the weighted
average yield on interest-earning assets decreasing 29 basis points to 4.21%
for the three months ended December31, 2013 compared to 4.50% for the three
months ended December31, 2012.

Interest income on loans increased by $14.2 million, or 11.7%, to $134.9
million for the three months ended December31, 2013 from $120.8 million for
the three months ended December31, 2012, reflecting a $2.10 billion or 21.3%,
increase in the average balance of net loans to $11.96 billion for the three
months ended December31, 2013 from $9.85 billion for the three months ended
December31, 2012. The increase is primarily attributed to the average balance
of multi-family loans and commercial real estate loans increasing $1.19
billion and $418.2 million, respectively, as we continue to focus on
diversifying our loan portfolio by adding more multi-family loans and
commercial real estate loans. Additionally, the average balance of
residential loans increased by $469.4 million, commercial and industrial loans
increased by $60.3 million, while construction loans decreased $41.8 million
for the three months ended December31, 2013. This increase was partially
offset by a 39 basis point decrease in the average yield on net loans to 4.51%
for the three months ended December31, 2013 from 4.90% for the three months
ended December31, 2012. Prepayment penalties, which are included in interest
income increased to $5.1 million for the three months ended December 31, 2013
from $3.2 million for the three months ended December 31, 2012, however, the
decrease in average yield on net loans reflects lower rates on new and
refinanced loans due to the current interest rate environment.

Interest income on all other interest-earning assets, excluding loans,
increased by $1.7 million or 18.4%, to $11.1 million for the three months
ended December31, 2013 from $9.4 million for the three months ended
December31, 2012. Income from Federal Home Loan Bank Stock increased by
$391,000 or 26.3% for the three months ended December31, 2013. The average
balance in all other interest-earning assets, excluding loans, increased
$197.2 million to $1.92 billion for the three months ended December31, 2013
from $1.72 billion for the three months ended December31, 2012. The weighted
average yield on interest-earning assets, excluding loans increased 13 basis
points to 2.31% for the three months ended December31, 2013 compared to 2.18%
for the three months ended December31, 2012.

Total interest and dividend income increased by $48.9 million, or 9.9%, to
$545.1 million for the year ended December31, 2013 from $496.2 million for
the year ended December31, 2012. This increase is attributed to the average
balance of interest-earning assets increasing $1.94 billion, or 17.7%, to
$12.91 billion for the year ended December31, 2013 from $10.97 billion for
the year ended December31, 2012. This was partially offset by the weighted
average yield on interest-earning assets decreasing 30 basis points to 4.22%
for the year ended December31, 2013 compared to 4.53% for the year ended
December31, 2012 reflecting the lower interest rate environment.

Interest income on loans increased by $49.4 million, or 10.9%, to $504.6
million for the year ended December31, 2013 from $455.2 million for the year
ended December31, 2012, reflecting a $1.79 billion, or 19.4%, increase in the
average balance of net loans to $11.07 billion for the year ended December31,
2013 from $9.27 billion for the year ended December31, 2012. The average
balance of residential loans increased $63.3 million for the year ended
December 31, 2013. The additional increases are primarily attributed to the
average balance of multi-family loans, commercial real estate loans and
commercial and industrial loans increasing $1.20 billion, $538.2 million and
$56.9 million, respectively, as we continue to focus on diversifying our loan
portfolio by adding more multi-family loans and commercial real estate loans.
This increase was partially offset by a 35 basis point decrease in the average
yield on net loans to 4.56% for the year ended December31, 2013 from 4.91%
for the year ended December31, 2012. Prepayment penalties, which are
included in interest income increased to $15.9 million for the year ended
December 31, 2013 from $8.6 million for the year ended December 31, 2012,
however the decrease in average yield on net loans reflects lower rates on new
and refinanced loans due to the current interest rate environment.

Interest income on all other interest-earning assets, excluding loans,
decreased by $522,000, or 1.3%, to $40.4 million for the year ended
December31, 2013 from $41.0 million for the year ended December31, 2012.
This decrease reflected the weighted average yield on interest-earning assets,
excluding loans, decreasing by 23 basis points to 2.19% for the year ended
December31, 2013 compared to 2.42% for the year ended December31, 2012
reflecting the current interest rate environment. This was partially offset
by a $150.7 million increase in the average balance of all other
interest-earning assets, excluding loans, to $1.85 billion for the year ended
December31, 2013 from $1.70 billion for the year ended December31, 2012.

Interest Expense

Total interest expense decreased by $854,000, or 3.0%, to $27.8 million for
the three months ended December31, 2013 from $28.6 million for the three
months ended December31, 2012. This decrease is attributed to the weighted
average cost of total interest-bearing liabilities decreasing 21 basis points
to 0.92% for the three months ended December31, 2013 compared to 1.13% for
the three months ended December31, 2012. This was partially offset by the
average balance of total interest-bearing liabilities increasing by $1.99
billion, or 19.7%, to $12.10 billion for the three months ended December31,
2013 from $10.11 billion for the three months ended December31, 2012.

Interest expense on interest-bearing deposits decreased $660,000, or 4.7% to
$13.3 million for the three months ended December31, 2013 from $14.0 million
for the three months ended December31, 2012. This decrease is attributed to
a 10 basis point decrease in the average cost of interest-bearing deposits to
0.61% for the three months ended December31, 2013 from 0.71% for the three
months ended December31, 2012 as deposit rates reflect the lower interest
rate environment. The impact from these decreases was partially offset by the
average balance of total interest-bearing deposits increasing $816.5 million,
or 10.4% to $8.68 billion for the three months ended December31, 2013 from
$7.87 billion for the three months ended December31, 2012. The average
balances of core deposit accounts (savings, checking and money market)
increased by $865.0 million over the prior year period.

Interest expense on borrowed funds decreased by $194,000 or 1.3%, to $14.5
million for the three months ended December31, 2013 from $14.7 million for
the three months ended December31, 2012. The average cost of borrowing
decreased 92 basis points to 1.70% for the three months ended December31,
2013 from 2.62% for the three months ended December31, 2012 as maturing and
new borrowings repriced to lower interest rates. Partially offsetting the
impact was the average balance of borrowed funds increasing $1.18 billion or
52.6%, to $3.41 billion for the three months ended December31, 2013 from
$2.24 billion for the three months ended December31, 2012.

Total interest expense decreased by $13.8 million, or 11.2%, to $109.6 million
for the year ended December31, 2013 from $123.4 million for the year ended
December31, 2012. This decrease is attributed to the weighted average cost
of total interest-bearing liabilities decreasing 29 basis points to 0.98% for
the year ended December31, 2013 compared to 1.27% for the year ended
December31, 2012. This was partially offset by the average balance of total
interest-bearing liabilities increasing by $1.52 billion, or 15.6%, to $11.24
billion for the year ended December31, 2013 from $9.72 billion for the year
ended December31, 2012.

Interest expense on interest-bearing deposits decreased $13.6 million, or
21.4% to $50.0 million for the year ended December31, 2013 from $63.6 million
for the year ended December31, 2012. This decrease is attributed to a 23
basis point decrease in the average cost of interest-bearing deposits to 0.62%
for the year ended December31, 2013 from 0.85% for the year ended
December31, 2012 as deposit rates reflect the lower interest rate
environment. This was partially offset by the average balance of total
interest-bearing deposits increasing $562.0 million, or 7.5% to $8.06 billion
for the year ended December31, 2013 from $7.50 billion for the year ended
December31, 2012. The average balances of core deposit accounts (savings,
checking and money market) increased $867.4 million for the year ended
December31, 2013 over the prior year period.

Interest expense on borrowed funds decreased by $189,000 or 0.32% to $59.7
million for the year ended December31, 2013. The average cost of borrowed
funds decreased by 81 basis points to 1.88% for the year ended December31,
2013 from 2.69% for the year ended December31, 2012 as maturing and new
borrowings repriced to current interest rates, while the average balance of
borrowed funds increased by $956.3 million or 43.0%, to $3.18 billion for the
year ended December31, 2013 from $2.22 billion for the year ended
December31, 2012.

Net Interest Income

Net interest income increased by $16.7 million, or 16.5%, to $118.3 million
for the three months ended December31, 2013 from $101.5 million for the three
months ended December31, 2012. The increase was primarily due to the average
balance of interest earning assets increasing $2.30 billion to $13.88 billion
at December31, 2013 compared to $11.58 billion at December31, 2012, as well
as a 21 basis point decrease in our cost of interest-bearing liabilities to
0.92% for the three months ended December31, 2013 from 1.13% for the three
months ended December31, 2012. These were partially offset by the average
balance of our interest bearing liabilities increasing $1.99 billion to $12.10
billion at December31, 2013 compared to $10.11 billion at December31, 2012,
as well as the yield on our interest-earning assets decreasing 29 basis points
to 4.21% for the three months ended December31, 2013 from 4.50% for the three
months ended December31, 2012. The net interest spread decreased by 7 basis
points to 3.29% for the three months ended December31, 2013 from 3.36% for
the three months ended December31, 2012 as the yield on interest earning
assets declined 29 basis points while the yield of interest bearing
liabilities declined 21 basis points.

Net interest income increased by $62.7 million, or 16.8%, to $435.4 million
for the year ended December31, 2013 from $372.7 million for the year ended
December31, 2012. The increase was primarily due to the average balance of
interest earning assets increasing $1.94 billion to $12.91 billion at
December31, 2013 compared to $10.97 billion at December31, 2012, as well as
a 29 basis point decrease in our cost of interest-bearing liabilities to 0.98%
for the year ended December31, 2013 from 1.27% for the year ended
December31, 2012. These were partially offset by the average balance of our
interest bearing liabilities increasing $1.52 billion to $11.24 billion at
December31, 2013 compared to $9.72 billion at December31, 2012, as well as
the yield on our interest-earning assets decreasing 30 basis points to 4.22%
for the year ended December31, 2013 from 4.53% for the year ended
December31, 2012. The net interest spread decreased one basis point to 3.25%
for the year ended December31, 2013 from 3.26% for the year ended December
31, 2012.

Non-Interest Income

Total non-interest income decreased by $3.0 million, or 28.8% to $7.5 million
for the three months ended December31, 2013 from $10.5 million for the three
months ended December31, 2012. The decrease is primarily attributed to the
gain on the sale of loans decreasing $3.5 million to $1.4 million for the
three months ended December31, 2013 as compared to $5.0 million for the three
months ended December31, 2012 due to a lower volume of sales in the secondary
market at slightly lower margins. In addition, gain on security transactions
increased by $77,000 for the three months ended December31, 2013, offset by
net impairment losses on investment securities of $977,000. Each quarter, the
Company conducts an evaluation of its securities portfolio to determine
whether the value of any security has declined below its cost or amortized
cost, and whether such decline is other-than-temporary. At December31,
2013, the discounted cash flow projected for one of the Company's pooled
trust preferred securities fell below its adjusted book value. Based on the
review of underlying collateral, the credit of this security has continued to
deteriorate and therefore the Company recorded net other-than-temporary
impairment ("OTTI") charge of $977,000 for the three months ended December 31,
2013. These decreases were offset by increases to fees and service charges of
$680,000 and net gains on sales of other real estate owned of $821,000.

Total non-interest income decreased by $7.5 million, or 17.1% to $36.6 million
for the year ended December31, 2013 from $44.1 million for the year ended
December31, 2012. The decrease is primarily attributed to the gain on the
sale of loans decreasing $12.1 million to $8.7 million for the year ended
December31, 2013 as compared to $20.9 million for the year ended December31,
2012 due to lower volume of sales in the secondary market at slightly lower
margins as well as a decrease of $498,000 on gains on security transactions
during the year ended December31, 2013. For the year ended December 31, 2013
the Company had net impairment losses on investment securities of $977,000
discussed above. These decreases were offset by increases to fees and service
charges of $2.2 million which included a $1.6 million reversal of a previously
established valuation reserve on mortgage servicing rights, and net gains on
sale of other real estate owned of $1.6 million. Other income increased by
$1.1 million as a result of income on increased sales of non-deposit
investment products.

Non-Interest Expenses

Total non-interest expenses increased by $12.4 million, or 20.9%, to $71.9
million for the three months ended December31, 2013 from $59.5 million for
the three months ended December31, 2012. Included in non-interest expenses
for the three months ended December 31, 2013 and 2012 are non-recurring
acquisition related expenses of $5.6 million and $7.3 million, respectively.
Excluding acquisition related expenses, compensation and fringe benefits
increased $7.7 million for the three months ended December31, 2013 primarily
as a result of the staff additions to support our continued growth as well as
normal merit increases. The Company has continued to increase its branch
network and enter new markets through acquisitions as well as organic growth.
Exclusive of the non-recurring acquisition expenses, this has resulted in an
increase in data processing, occupancy expense and advertising expenses, of
$2.1 million, $1.9 million, and $808,000, respectively, for the three months
ended December31, 2013. Excluding non-recurring acquisition expenses, other
operating expense also increased $896,000 for the three months ended
December31, 2013 related to higher recruiting, training and insurance
expenses. FDIC insurance premium increased by $500,000 for the three months
ended December31, 2013 compared to December31, 2012.

Total non-interest expenses increased by $38.7 million, or 18.7%, to $245.7
million for the year ended December31, 2013 from $207.0 million for the year
ended December31, 2012. Included in non-interest expenses for the year
ended December 31, 2013 and 2012 are non-recurring acquisition related
expenses of $5.6 million and $13.3 million, respectively. Excluding
acquisition related expenses, compensation and fringe benefits increased $23.4
million for the year ended December31, 2013 primarily as a result of the
staff additions to support our continued growth, a $1.8 million one-time
charge related to medical insurance, as well as normal merit increases The
Company has continued to increase its branch network and enter new markets
through acquisitions as well as organic growth. Exclusive of the
non-recurring acquisition expenses, this has resulted in an increase to
occupancy expense, data processing, professional fees and advertising expenses
of $5.7 million $4.9 million, $3.3 million and $1.7 million, respectively, for
the year ended December31, 2013. Additionally, for the years ended
December31, 2013 and December31, 2012, occupancy expense includes a one-time
charge of approximately $1.0 million and $3.0 million, respectively, for the
early termination of certain leased facilities. Our FDIC insurance premium
also increased by $4.2 million for the year ended December31, 2013 as
compared to the year ended December31, 2012. This increase is a result of
the FDIC final rules for determining deposit insurance assessment, effective
March 1, 2013. Excluding non-recurring acquisition expenses, other operating
expense increased by $2.7 million for the year ended December31, 2013 related
to higher recruiting, training and insurance expenses, and amortization of
deposit premium increased $580,000.

Income Taxes

Income tax expense was $17.1 million for the three months ended December31,
2013, representing a 38.32% effective tax rate compared to income tax expense
of $14.2 million for the three months ended December31, 2012 representing a
39.85% effective tax rate.

Income tax expense was $63.8 million for the year ended December31, 2013,
representing a 36.27% effective tax rate compared to income tax expense of
$56.1 million for the year ended December31, 2012 representing a 38.72%
effective tax rate.

Provision for Loan Losses
Our provision for loan losses was $9.3 million for the three months ended
December31, 2013 compared to $17.0 million for the three months ended
December31, 2012. For the three months ended December31, 2013, net
charge-offs were $2.1 million compared to $6.1 million for the three months
ended December31, 2012. For the year ended December31, 2013, our provision
for loan losses was $50.5 million compared to $65.0 million for the year ended
December31, 2012. For the year ended December31, 2013, net charge-offs were
$18.7 million compared to $40.1 million for the year ended December31, 2012.
Our provision for the three months and year ended December31, 2013 is a
result of continued growth in the loan portfolio, specifically the
multi-family, commercial real estate and commercial and industrial portfolios;
the inherent credit risk in our overall portfolio, particularly the credit
risk associated with commercial real estate lending and commercial and
industrial lending and the level of non-performing loans and delinquent loans
caused by the adverse economic and real estate conditions in our lending
area.

Our past due loans and non-accrual loans discussed below exclude certain
purchased credit impaired (PCI) loans, primarily consisting of loans recorded
in the acquisitions of Roma Financial and Marathon Bank. 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 delinquent PCI loans) on the dates
indicated as well as certain asset quality ratios.



             December 31,           September 30,          June 30,               March 31,              December 31,

             2013                   2013                   2013                   2013                   2012
             
                         amount     #ofloans  amount     #ofloans  amount     #ofloans  amount     #ofloans  amount
             #ofloans
             (Dollars in millions)
Accruing
past due
loans:
30 to 59
days past
due:
Residential  97          $ 17.9     52          $ 15.1     55          $ 17.9     76          $ 20.0     114         $ 34.3
and consumer
Construction 1           0.3        —           —          —           —          —           —          —           —
Multi-family 3           1.4        4           9.2        1           0.1        2           4.5        1           0.2
Commercial   11          16.4       2           3.2        —           —          1           0.5        6           16.5
real estate
Commercial
and          10          5.9        2           0.2        1           0.1        2           1.1        3           0.6
industrial
Total 30 to
59 days past 122         $ 41.9     60          $ 27.7     57          $ 18.1     81          $ 26.1     124         $ 51.6
due
60 to 89
days past
due:
Residential  40          6.6        26          7.3        37          10.3       36          9.7        45          11.9
and consumer
Construction 1           0.5        —           —          —           —          —           —          —           —
Multi-family 2           0.2        2           3.6        —           —          2           0.6        3           4.0
Commercial   4           10.3       2           0.3        —           —          1           0.3        4           3.0
real estate
Commercial
and          2           0.3        1           0.3        1           0.1        4           0.8        2           2.6
industrial
Total 60 to
89 days past 49          17.9       31          11.5       38          10.4       43          11.4       54          21.5
due
Total
accruing     171         $ 59.8     91          $ 39.2     95          $ 28.5     124         $ 37.5     178         $ 73.1
past due
loans
Non-accrual:
Residential  304         74.3       305         75.1       286         72.0       328         84.1       354         82.5
and consumer
Construction 18          16.2       7           14.2       9           21.8       9           24.1       9           25.8
Multi-family 5           5.9        9           16.8       10          17.2       7           14.5       5           11.1
Commercial   12          2.7        3           1.6        3           2.0        6           10.2       4           0.8
real estate
Commercial
and          4           1.3        8           1.9        6           1.5        6           2.8        2           0.4
industrial
Total
non-accrual  343         $ 100.4    332         $ 109.6    314         $ 114.5    356         $ 135.7    374         $ 120.6
loans
Accruing
troubled
debt         50          $ 39.6     36          $ 24.5     29          $ 19.7     18          $ 9.0      22          $ 15.8

restructured
loans
Non-accrual
loans to                 0.77    %              0.95    %              1.04    %              1.28    %              1.16    %
total loans
Allowance
for loan
loss as a
                         173.30  %              152.18  %              134.90  %              110.21  %              117.92  %
percent of
non-accrual
loans
Allowance
for loan
losses as a              1.33    %              1.45    %              1.40    %              1.41    %              1.36    %

percent of
total loans



Total non-accrual loans decreased by $20.2 million to $100.4 million at
December31, 2013 compared to $120.6 million at December31, 2012 as we
continue to diligently resolve our troubled loans. At December 31, 2013, our
allowance for loan loss as a percent of total loans was 1.33%. At
December31, 2013, there were $51.0 million of loans deemed troubled debt
restructuring, of which $21.0 million were residential and consumer loans,
$12.2 million of multi family loans, $11.7 of commercial real estate loans,
$4.5 million of construction loans and $1.6 million of commercial and
industrial loans. $39.6 million of the troubled debt restructured loans were
classified as accruing and $11.4 million of these loans were classified as
non-accrual at December 31, 2013.

The allowance for loan losses increased by $31.7 million to $173.9 million at
December31, 2013 from $142.2 million at December31, 2012. The increase in
our allowance for loan losses is due to the growth of the loan portfolio and
the increased credit risk in our overall portfolio, particularly the inherent
credit risk associated with commercial real estate lending. Future increases
in the allowance for loan losses may be necessary based on the growth and
composition of the loan portfolio, the level of non-performing loans and
delinquent loans and the impact of the deterioration of the real estate and
economic environments in our lending area.

Balance Sheet Summary

Total assets increased by $2.90 billion, or 22.8%, to $15.62 billion at
December31, 2013 from $12.72 billion at December31, 2012. Approximately
$1.17 billion of this increase is attributed to the acquisition of Roma
Financial. The remaining increases were largely the result of net loans,
including loans held for sale, increasing by $2.56 billion to $12.89 billion
at December31, 2013 from $10.34 billion at December31, 2012. In addition,
stock in FHLB increased $27.6 million to $178.1 million at December31, 2013
from $150.5 million at December31, 2012.

Net loans, including loans held for sale, increased by $2.56 billion, or
24.7%, to $12.89 billion at December31, 2013 from $10.34 billion at
December31, 2012. At December31, 2013, total loans were $13.06 billion
which included $5.70 billion in residential loans, $3.99 billion in
multi-family loans, $2.51 billion in commercial real estate loans, $202.3
million in construction loans, $404.0 million in consumer and other loans and
$268.4 million in commercial and industrial loans. Net loans acquired from
Roma Financial was $991.0 million. For the year December31, 2013, we
originated $1.59 billion in multi-family loans, $454.2 million in commercial
real estate loans, $251.0 million in commercial and industrial loans, $79.6
million in consumer and other loans and $57.5 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.

We originate residential mortgage loans through our mortgage subsidiary,
Investors Home Mortgage Co. For the year ended December31, 2013, Investors
Home Mortgage Co. originated $1.45 billion in residential mortgage loans of
which $379.8 million were for sale to third party investors and $1.07 billion
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 December31, 2013,
we purchased loans totaling $1.05 billion from these entities.

Securities, in the aggregate, decreased by $51.6 million, or 3.3%, to $1.62
billion at December31, 2013. We acquired $395.6 million of securities from
Roma Financial and sold substantially all of that portfolio upon the
completion of the acquisition. The decrease is attributed to normal pay downs
and maturities during the year ended December31, 2013 and the decrease in
market value of available for sale securities of $23.1 million from December
31, 2012. For the three months ended December 31, 2013, we recorded an OTTI
charge on a previously impaired pooled trust preferred security. During the
second quarter of 2013, the Company reclassified $524.0 million of securities
available for sale to securities held to maturity as the Company has the
intent and ability to hold these securities until maturity. In December,
regulatory agencies adopted a rule on the treatment of certain collateralized
debt obligations backed by trust preferred securities to implement sections of
the Dodd-Frank Wall Street Reform and Consumer Protection Act, known as the
Volcker Rule. Upon evaluation of the impact of the Volcker Rule, the Company
reclassified a trust preferred security with a fair value of $670,000 from
held-to maturity to available for sale as the Company will be required to sell
this security. The security had no unrealized loss at the time of transfer.

Deposits increased by $1.95 billion or 22.2% from $8.77 billion at
December31, 2012 to $10.72 billion at December31, 2013 of which $1.34
billion is from the acquisition of Roma Financial. Core deposits increased
$1.53 billion or 26.4%, as well as an increase to certificates of deposit
totaling $418.6 million. Core deposits represents approximately 68% of our
total deposit portfolio.

Borrowed funds increased $661.6 million, or 24.5%, to $3.37 billion at
December31, 2013 from $2.71 billion at December31, 2012 due to the funding
of our asset growth.

Stockholders' equity increased $267.5 million to $1.33 billion at December31,
2013 from $1.07 billion at December31, 2012. The increase is primarily
attributed to the $112.0 million of net income for the year ended December31,
2013 as well as an increase of $179.1 million attributed to the acquisition of
Roma Financial. These increases were offset by an $18.1 million increase to
other comprehensive loss primarily attributed to the decrease in value of
available for sale securities at December 31, 2013. Stockholders' equity was
also impacted by $0.20 per common share of a cash dividend for the year end
that resulted in a decrease of $22.4 million.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as of
December31, 2013 operates from its corporate headquarters in Short Hills, New
Jersey and 129 offices located throughout New Jersey and New York.

Earnings Conference Call January 31, 2014 at 11:00 a.m. (ET)

The Company, as previously announced, will host an earnings conference call
Friday, January 31, 2014 at 11:00 a.m. (ET). The toll-free dial-in number is:
(888) 317-6016. Callers who pre-register will bypass the live operator and
may avoid any delays in joining the conference call. Participants will
immediately receive an online confirmation, an email, and a calendar
invitation for the event.

Conference Call Pre-registration link: http://dpregister.com/10038902

A telephone replay will be available beginning on January 31, 2014 from 1:00
p.m. (ET) through 9:00 a.m. (ET) on May 1, 2014. The replay number is (877)
344-7529 password 10038902. 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.

Contact: Domenick Cama
(973) 924-5105
dcama@myinvestorsbank.com



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                                          December31, 2013  December31, 2012
                                          (unaudited)
Assets                                    (In thousands)
Cash and cash equivalents                 $   250,689        155,153
Securities available-for-sale, at         785,032            1,385,328
estimated fair value
Securities held-to-maturity, net
(estimated fair value of

$839,064 and $198,893 at December 31,     831,819            179,922
2013 and December

31, 2012 respectively)
Loans receivable, net                     12,882,544         10,306,786
Loans held-for-sale                       8,273              28,233
Federal Home Loan Bank stock              178,126            150,501
Accrued interest receivable               47,448             45,144
Other real estate owned                   8,516              8,093
Office properties and equipment, net      138,105            91,408
Net deferred tax asset                    216,206            150,006
Bank owned life insurance                 152,788            113,941
Intangible assets                         109,129            99,222
Other assets                              14,395             8,837
Total Assets                              $   15,623,070     12,722,574
Liabilities and Stockholders' Equity
Liabilities:
Deposits                                  $   10,718,811     8,768,857
Borrowed funds                            3,367,274          2,705,652
Advance payments by borrowers for taxes   67,154             52,707
and insurance
Other liabilities                         135,504            128,541
Total liabilities                         14,288,743         11,655,757
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; 143,937,917 issued;
138,449,196 and                           596                532

111,915,882 outstanding at December 31,
2013 and

December 31, 2012, respectively
Additional paid-in capital                721,689            533,858
Retained earnings                         734,563            644,923
Treasury stock, at cost; 5,488,721 and
6,104,398 shares at
                                          (67,046)           (73,692)
December 31, 2013 and December 31, 2012,
respectively
Unallocated common stock held by the
employee stock                            (29,779)           (31,197)

ownership plan
Accumulated other comprehensive loss      (25,696)           (7,607)
Total stockholders' equity                1,334,327          1,066,817
Total liabilities and stockholders'       $   15,623,070     12,722,574
equity



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
                         For the Three Months        For the Years
                         Ended December 31,          Ended December 31,
                         2013          2012          2013          2012
                         (unaudited)   (unaudited)   (unaudited)
                         (Dollars in thousands, except per share data)
Interest and dividend
income:
 Loans receivable and    $  134,940    120,783       504,622       455,221
 loans held-for-sale
 Securities:
    Government-sponsored
    enterprise           5             1             9             15
    obligations
    Mortgage-backed      7,722         6,637         28,057        30,167
    securities
    Equity securities    20            7             61            17
    available-for-sale
    Municipal bonds and  1,472         1,235         5,873         5,174
    other debt
 Interest-bearing        8             10            49            40
 deposits
 Federal Home Loan Bank  1,877         1,486         6,397         5,555
 stock
        Total interest
        and dividend     146,044       130,159       545,068       496,189
        income
Interest expense:
 Deposits                13,301        13,961        49,969        63,582
 Secured borrowings      14,489        14,683        59,673        59,862
        Total interest   27,790        28,644        109,642       123,444
        expense
        Net interest     118,254       101,515       435,426       372,745
        income
Provision for loan       9,250         17,000        50,500        65,000
losses
        Net interest
        income after
        provision for    109,004       84,515        384,926       307,745

        loan losses
Non-interest income
 Fees and service        4,475         3,795         18,804        16,564
 charges
 Income on bank owned    716           886           2,898         2,778
 life insurance
 Gain on loan            1,446         4,992         8,748         20,866
 transactions, net
 Gain (loss) on          66            (11)          772           274
 securities transactions
 Impairment losses on
 investment securities:
    Impairment losses on
    investment           (939)         —             (939)         —
    securities
    Noncredit-related
    recognized in
    comprehensive        (38)          —             (38)          —

    income
    Net impairment
    losses on investment
    securities           (977)         —             (977)         —

    recognized in
    earnings
 Gain (loss) on sales of
 other real estate       763           (58)          1,451         (180)
 owned, net
 Other income            965           869           4,875         3,810
        Total
        non-interest     7,454         10,473        36,571        44,112
        income
Non-interest expense
 Compensation and fringe 38,293        32,956        128,765       109,197
 benefits
 Advertising and         2,368         1,560         8,602         6,854
 promotional expense
 Office occupancy and    10,200        8,315         39,226        33,558
 equipment expense
 Federal insurance       3,900         3,400         14,950        10,770
 premiums
 Stationery, printing,   951           790           3,395         2,852
 supplies and telephone
 Professional fees       3,269         1,896         11,154        9,487
 Data processing service 7,058         5,851         19,844        17,405
 fees
 Other operating         5,821         4,690         19,775        16,884
 expenses
        Total
        non-interest     71,860        59,458        245,711       207,007
        expenses
        Income before
        income tax       44,598        35,530        175,786       144,850
        expense
Income tax expense       17,089        14,159        63,755        56,083
        Net income       $  27,509     $   21,371    $  112,031    $   88,767
Basic earnings per share $  0.24       $   0.20      $  1.02       $   0.83
Diluted earnings per     $  0.24       $   0.20      $  1.01       $   0.82
share
Weighted average shares
outstanding:
 Basic                   115,338,792   107,443,387   109,659,827   107,371,685
 Diluted                 116,835,548   108,508,350   110,994,449   108,091,522



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Average Balance Sheet and Yield/Rate Information
                    For Three Months Ended
                    December 31, 2013                     December 31, 2012
                    Average       Interest    Average     Average       Interest    Average
                    Outstanding   Earned/Paid Yield/Rate  Outstanding   Earned/Paid Yield/Rate
                    Balance                               Balance
                    (Dollars in thousands)
Interest-earning
assets:
 Interest-earning   $ 178,112     8           0.02   %    118,755       10          0.03   %
 cash accounts
 Securities         830,967       4,066       1.96   %    1,292,606     5,163       1.60   %
 available-for-sale
 Securities         734,255       5,153       2.81   %    180,694       2,717       6.01   %
 held-to-maturity
 Net loans          11,955,580    134,940     4.51   %    9,854,541     120,783     4.90   %
 Federal Home Loan  177,018       1,877       4.24   %    127,986       1,486       4.64   %
 Bank stock
   Total
   interest-earning 13,875,932    146,044     4.21   %    11,574,582    130,159     4.50   %
   assets
Non-interest        610,314                               545,752
earning assets
   Total assets     $ 14,486,246                          $ 12,120,334
Interest-bearing
liabilities:
 Savings            1,864,064     1,581       0.34   %    1,653,466     1,848       0.45   %
 Interest-bearing   1,969,017     1,687       0.34   %    1,674,235     1,621       0.39   %
 checking
 Money market       1,886,681     2,524       0.54   %    1,527,031     1,838       0.48   %
 accounts
 Certificates of    2,964,722     7,509       1.01   %    3,013,228     8,654       1.15   %
 deposit
 Interest bearing   8,684,484     13,301      0.61   %    7,867,960     13,961      0.71   %
 deposits
 Borrowed funds     3,414,634     14,489      1.70   %    2,238,159     14,683      2.62   %
   Total
   interest-bearing 12,099,118    27,790      0.92   %    10,106,119    28,644      1.13   %
   liabilities
Non-interest        1,191,788                             957,833
bearing liabilities
   Total            13,290,906                            11,063,952
   liabilities
Stockholders'       1,195,340                             1,056,382
equity
   Total
   liabilities and
   stockholders'    $ 14,486,246                          $ 12,120,334

   equity
Net interest income               $  118,254                            $  101,515
Net interest rate                             3.29   %                              3.36   %
spread
Net interest        $ 1,776,814                           $ 1,468,463
earning assets
Net interest margin                           3.41   %                              3.51   %
Ratio of
interest-earning
assets to total     1.15          X                       1.15          X

interest- bearing
liabilities



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Average Balance Sheet and Yield/Rate Information
                    For the Years Ended
                    December 31, 2013                     December 31, 2012
                    Average       Interest    Average     Average       Interest    Average
                    Outstanding   Earned/Paid Yield/Rate  Outstanding   Earned/Paid Yield/Rate
                    Balance                               Balance
                    (Dollars in thousands)
Interest-earning
assets:
 Interest-earning   $ 136,656     49          0.04   %    96,945        40          0.04   %
 cash accounts
 Securities         1,092,503     18,638      1.71   %    1,250,391     22,521      1.80   %
 available-for-sale
 Securities         449,736       15,362      3.42   %    221,524       12,852      5.80   %
 held-to-maturity
 Net loans          11,065,190    504,622     4.56   %    9,271,550     455,221     4.91   %
 Federal Home Loan  168,028       6,397       3.81   %    124,385       5,555       4.47   %
 Bank stock
   Total
   interest-earning 12,912,113    545,068     4.22   %    10,964,795    496,189     4.53   %
   assets
Non-interest        564,764                               493,278
earning assets
   Total assets     $ 13,476,877                          $ 11,458,073
Interest-bearing
liabilities:
 Savings            1,775,454     6,320       0.36   %    1,535,636     7,859       0.51   %
 Interest-bearing   1,791,345     6,245       0.35   %    1,467,583     6,586       0.45   %
 checking
 Money market       1,646,235     7,537       0.46   %    1,342,366     7,937       0.59   %
 accounts
 Certificates of    2,849,573     29,867      1.05   %    3,155,041     41,200      1.31   %
 deposit
 Interest bearing   8,062,607     49,969      0.62   %    7,500,626     63,582      0.85   %
 deposits
 Borrowed funds     3,180,473     59,673      1.88   %    2,224,126     59,862      2.69   %
   Total
   interest-bearing 11,243,080    109,642     0.98   %    9,724,752     123,444     1.27   %
   liabilities
Non-interest        1,113,121                             710,894
bearing liabilities
   Total            12,356,201                            10,435,646
   liabilities
Stockholders'       1,120,676                             1,022,427
equity
   Total
   liabilities and
   stockholders'    $ 13,476,877                          $ 11,458,073

   equity
Net interest income               $  435,426                            $  372,745
Net interest rate                             3.25   %                              3.26   %
spread
Net interest        $ 1,669,033                           $ 1,240,043
earning assets
Net interest margin                           3.37   %                              3.40   %
Ratio of
interest-earning
assets to total     1.15          X                       1.13          X

interest- bearing
liabilities



INVESTORS BANCORP, INC. AND SUBSIDIARIES
Selected Performance Ratios
                            For the Three Months Ended
                            December 31,
                            2013                       2012
Return on average assets    0.76             %         0.71             %
Return on average equity    9.21             %         8.09             %
Return on average tangible  10.07            %         8.88             %
equity
Interest rate spread        3.29             %         3.36             %
Net interest margin         3.41             %         3.51             %
Efficiency ratio            57.16            %         53.09            %
Efficiency ratio, as        51.91            %         46.59            %
adjusted (1)
Non-interest expense to     1.98             %         1.96             %
average total assets
Average interest-earning
assets to average interest- 1.15                       1.15

bearing liabilities
(1) Efficiency ratio as adjusted for the three months ended December 31,
2013 excludes one-time expenses related to the acquisitions of Roma Financial
of $5.6 million and a non cash other than temporary impairment charge of
approximately $977,000. For the three months ended December 31, 2012, the
ratio excludes one-time expenses related to the acquisition of Marathon Bank
of $7.3 million.
                            For the Years Ended
                            December 31,
                            2013                       2012
Return on average assets    0.83             %         0.77             %
Return on average equity    10.00            %         8.68             %
Return on average tangible  10.98            %         9.27             %
equity
Interest rate spread        3.25             %         3.26             %
Net interest margin         3.37             %         3.40             %
Efficiency ratio            52.06            %         49.66            %
Efficiency ratio, as        50.66            %         46.47            %
adjusted (2)
Non-interest expense to     1.82             %         1.81             %
average total assets
Average interest-earning
assets to average interest- 1.15                       1.13

bearing liabilities
(2) Efficiency ratio as adjusted for the year ended December 31, 2013
excludes one-time expenses related to the acquisitions of Roma Financial of
$5.6 million and a non cash other than temporary impairment charge of
approximately $977,000. For the year ended December 31, 2012, the ratio
excludes one-time expenses related to the acquisitions of Marathon Bank and
Brooklyn Federal of $13.3 million.
INVESTORS BANCORP, INC. AND SUBSIDIARIES
Selected Financial Ratios and Other Data
                            December 31, 2013          December 31, 2012
Asset Quality Ratios:
Non-performing assets as a  0.95             %         1.14             %
percent of total assets
Non-performing loans as a   1.07             %         1.31             %
percent of total loans
Allowance for loan losses
as a percent of non-accrual 173.30           %         117.92           %

loans
Allowance for loan losses   1.33             %         1.36             %
as a percent of total loans
Capital Ratios:
Total risk-based capital
(to risk weighted assets) 11.39            %         11.24            %
(3)
Tier 1 risk-based capital
(to risk weighted assets) 10.14            %         9.98             %
(3)
Tier 1 leverage (core)
capital (to adjusted
tangible                    8.20             %         7.59             %

assets) (3)
Equity to total assets      8.54             %         8.39             %
(period end)
Average equity to average   8.32             %         8.92             %
assets
Tangible capital (to        7.90             %         7.67             %
tangible assets)
Book value per common share $      9.85                $      9.81
Other Data:
Number of full service      129                        101
offices
Full time equivalent        1,541                      1,193
employees
(3) Ratios are for Investors Bank and do not include capital retained at the
holding company level.





SOURCE Investors Bancorp, Inc.
 
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