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Investors Bancorp Inc. Reports Operating Results (10-K)

March 01, 2011 | About:
10qk

10qk

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Investors Bancorp Inc. (ISBC) filed Annual Report for the period ended 2010-12-31.

Investors Bancorp Inc. has a market cap of $1.54 billion; its shares were traded at around $13.54 with a P/E ratio of 23.8 and P/S ratio of 3.4. Hedge Fund Gurus that owns ISBC: Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group. Mutual Fund and Other Gurus that owns ISBC: Charles Brandes of Brandes Investment.

Highlight of Business Operations:

On October 15, 2010, the Company completed its acquisition of Millennium bcpbank (Millennium) deposit franchise. In this transaction the Company acquired approximately $600.0 million of deposits and seventeen branches in New Jersey, New York and Massachusetts for a deposit premium of 0.11%. In addition, the Company purchased a portion of Millenniums performing loan portfolio and entered into a loan servicing agreement to service those loans it did not purchase. The Company recorded a bargain purchase gain of $1.8 million in connection with the purchase of the Millennium deposit franchise and servicing of their loan portfolio. The Company also entered into a definitive agreement to sell the Millennium branch locations in Massachusetts to Admirals Bank, headquartered in Cranston, Rhode Island. The transaction is anticipated to close during the second quarter 2011.

On October 16, 2009, the Company completed the acquisition of six New Jersey bank branches and approximately $227.0 million of deposits from Banco Popular North America. The Company did not purchase any loans as part of the transaction. The transaction generated approximately $4.9 million in goodwill.

On May 31, 2009, the Company completed the acquisition of American Bancorp of New Jersey, Inc. (American Bancorp), the holding company of American Bank of New Jersey (American Bank), a federal savings bank with approximately $680.0 million in assets and five full-service branches in northern New Jersey. The acquisition was accounted for under the purchase method of accounting as prescribed by Accounting Standard Codification (ASC) 805, Business Combinations, as amended. Accordingly, American Bancorps results of operations have been included in the Companys results of operations since the date of acquisition. Under this method of accounting, the purchase price is allocated to the respective assets acquired and liabilities assumed based on their estimated fair values, net of applicable income tax effects. The excess cost over fair value of net assets acquired is recorded as goodwill. The purchase price of $98.2 million was paid through a combination of the Companys common stock (6,503,897 shares) and cash of $47.5 million. The transaction generated approximately $17.6 million in goodwill and $3.9 million in core deposit intangibles subject to amortization beginning June 1, 2009. American Bank was merged into the Bank as of the acquisition date.

Investors Savings Bank is a New Jersey-chartered savings bank headquartered in Short Hills, New Jersey. Originally founded in 1926 as a New Jersey-chartered mutual savings and loan association, we have grown through acquisitions and internal growth, including de novo branching. In 1992, we converted our charter to a mutual savings bank, and in 1997 we converted our charter to a New Jersey-chartered stock savings bank. We conduct business from our main office located at 101 JFK Parkway, Short Hills, New Jersey, and 82 branch offices located throughout northern and central New Jersey, New York and Massachusetts. The telephone number at our main office is (973) 924-5100. At December 31, 2010, our assets totaled $9.60 billion and our deposits totaled $6.77 billion.

While our principal lending activity continues to be the origination and purchase of mortgage loans collateralized by residential real estate, in recent years we have focused on growing our commercial real estate portfolio. Residential mortgage loans represented $4.94 billion, or 61.8% of our total loans at December 31, 2010 compared to $2.69 billion, or 90.3% of our total loans at June 30, 2006. At December 31, 2010, commercial real estate totaled $1.23 billion, or 15.3% of our total loan portfolio, multi-family loans totaled $1.16 billion, or 14.5% of our total loan portfolio, construction loans totaled $347.8 million, or 4.4% of our total loan portfolio, and commercial and industrial loans totaled $60.9 million or 0.8% of our total loan portfolio. We also offer consumer loans, which consist primarily of home equity loans and home equity lines of credit. At December 31, 2010, consumer loans totaled $259.8 million or 3.3% of our total loan portfolio.

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