UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
AMENDMENT NO. 1
| ☒ | |||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the Fiscal Year Ended December 31, 2021 or
OR
| ☐ | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission File No. Number:
001-36441
Investors Bancorp Inc.
(Exact nameName of registrantRegistrant as specifiedSpecified in its charter)Charter)
Delaware | 46-4702118 | ||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | ||||||
101 JFK Parkway, Short Hills, New Jersey (Address of Principal Executive Office) | 07078 (Zip Code) | ||||||
(973)
924-5100
(Registrant’s Telephone Number including area code)
Securities Registered pursuant to Section 12(b) of the Act:
incorporation or organization) | Identification Number) | |||||||||||||
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common stock | ISBC | The | ||||||||||||
Securities Registered Pursuant toUnder Section 12(g) of the Exchange Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Sectionof 15(d) of the Act. Yes ☐ No ☑☒
Indicate by check mark whether the registrantregistrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve12 months (or for such shorter period that the Registrantregistrant was required to file such reports), and (2) has been subject to such requirements for the past 90 days. Yes ☑☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation☑☒ No ☐
S-T
during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” inRule 12b-2
of the Exchange Act.| Large accelerated filer ☒ | Accelerated filer | ☐ | ||||||||||||||||||||||||
Non-accelerated filer ☐ | Smaller reporting company ☐ | |||||||||||||||||||||||||
| Emerging growth company ☐ | ||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuantpersuant to Section 13(a) of the Exchange Act. Act ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑☒
Indicate by check mark whether the registrant is a shell company (as defined in. ☐ Yes ☐☒ No☑
Rule 12b-2
of the Exchange Act)The aggregate market value of the voting and non-voting common equity held by non-affiliatesnonaffiliates of the registrant, computed by reference to the last saleclosing price onof the registrant’s shares of common stock as of June 30, 2021 as reported by the NASDAQ Global Select Market, was approximately $3.23 billion.
As of March 22, 2022, there were 249,158,823 shares outstanding of the registrant’s common stock.
DOCUMENTS INCORPORATED BY REFERENCE
INDEX | ||||||
| Explanatory Note | ||||||
| Part III | ||||||
Item 10. | 2 | |||||
Item 11. | 24 | |||||
Item 12. | 59 | |||||
Item 13. | 61 | |||||
Item 14. | 61 | |||||
| Part IV | ||||||
Item 15. | 62 | |||||
EXPLANATORY NOTE
This Amendment No. 1 to the Annual Report on FormANNUAL REPORT ON FORM originally filed on March 1, 2022 (the “Original Filing”) by Investors Bancorp, Inc.,
10-K
(this “Amendment”) amends the Annual Report on Form10-K
for the fiscal year ended December 31, 2021 a
Delaware corporation (“Investors” or the “Company”). Investors is filing this Amendment to present the information required by Part III of Form10-K
as the Company will not file its definitive proxy statement within 120 days of the end of its fiscal year ended December 31, 2021.12b-15
under the Securities Exchange Act of 1934, as amended, this Amendment also contains new certifications by the principal executive officer and the principal financial officer as required by Section 302 of the Sarbanes-Oxley Act of 2002. Accordingly, Item 15(a)(3) of Part IV is amended to include the currently dated certifications as exhibits. Because no financial statements have been included in this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 and 308 of RegulationS-K,
paragraphs 3, 4 and 5 of the certifications have been omitted.On July 28, 2021, the Company and Citizens Financial Group, Inc. (“Citizens”) entered into an Agreement and Plan of Merger dated as of July 28, 2021 (the “Merger Agreement”) pursuant to which Citizens will acquire the Company. The transaction was approved by the Company’s stockholders on November 19, 2021. On March 22, Citizens and Investors received regulatory approval from the Board of Governors of the Federal Reserve System. On March 24, 2022, Citizens and Investors received regulatory approval from the Office of the Comptroller of the Currency. The transaction is expected to occur as of the close of business on April 6, 2022, therefore the Company does not anticipate holding an annual meeting of stockholders prior to closing.
Except as described above or as expressly noted in this Amendment, no other changes have been made to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, and the Company has not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the Original Filing.
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PART III
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Investors Bancorp’s Board of Directors currently consists of 12 members and is divided into three classes, with one class of directors elected each year. Each of the 12 members of the Board of Directors also serves as a director of Investors Bank. The current Bylaws of Investors Bancorp provide that a director shall retire from the Board at the annual meeting of the Board immediately following the year in which the director attains age 75.
The Company’s goal is to have a Board of Directors whose members have diverse professional backgrounds and have demonstrated professional achievement with the highest personal and professional ethics and integrity and whose values are compatible with those of Investors Bancorp. While the Nominating and Corporate Governance Committee does not have a formal policy with respect to the consideration of diversity in identifying director nominees, the Committee members recognize the benefits of a Board whose members possess a diversity of business experience and demographic backgrounds and seek to identify nominees with a range of background and experience. Important factors considered in the selection of nominees for director include experience in positions that develop good business judgment, that demonstrate a high degree of responsibility and independence, and that show the individual’s ability to commit adequate time and effort to serve as a director.
Directors and Executive Officers of Investors Bancorp
The following table states our directors’ names, their ages as of March 22, 2022, and the years when they began serving as directors of Investors Bancorp and when their current term expires.
Name DIRECTORS | Position(s) Held With Investors Bancorp | Age | Director Since | Current Term Expires | ||||||||||
Robert C. Albanese | Director | 74 | 2013 | 2022 | ||||||||||
Domenick A. Cama | Director, President and Chief Operating Officer | 65 | 2011 | 2022 | ||||||||||
James J. Garibaldi | Director | 70 | 2012 | 2022 | ||||||||||
James H. Ward III | Director | 73 | 2009 | 2022 | ||||||||||
Dennis M. Bone | Lead Independent Director | 70 | 2013 | 2023 | ||||||||||
Doreen R. Byrnes | Director | 72 | 2002 | 2023 | ||||||||||
William V. Cosgrove | Director | 74 | 2011 | 2023 | ||||||||||
Kevin Cummings | Chairman and Chief Executive Officer | 67 | 2008 | 2024 | ||||||||||
John E. Harmon, Sr. | Director | 61 | 2021 | 2024 | ||||||||||
Michele N. Siekerka | Director | 57 | 2013 | 2024 | ||||||||||
Paul N. Stathoulopoulos | Director | 74 | 2018 | 2024 | ||||||||||
Kim Wales | Director | 52 | 2021 | 2024 | ||||||||||
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The following information describes the business experience for each of Investors Bancorp’s directors and executive officers.
 | Robert C. Albanese The Nominating and Corporate Governance Committee considers Mr. Albanese’s extensive regulatory experience with particular expertise in financial analysis, enterprise risk analysis and audit to be assets to the Board of Directors. | |
 | Domenick A. Cama Mr. Cama has extensive knowledge of the banking industry and local markets served by Investors Bank. The Nominating and Corporate Governance Committee considers Mr. Cama’s experience, leadership, financial expertise and strong economics background to be unique assets for the Board of Directors. | |
 | James J. Garibaldi Mr. Garibaldi’s extensive real estate experience and knowledge of the local real estate market bring valuable expertise to the Board of Directors. The Nominating and Corporate Governance Committee considers Mr. Garibaldi’s leadership skills and real estate knowledge to be assets to the Board of Directors. | |
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 | James H. Ward III Mr. Ward brings a wide range of management experience and business knowledge that provides a valuable resource to the Board of Directors. These skills and experience combined with the unique perspective Mr. Ward brings from his background as an entrepreneur provide skills and experience which the Nominating and Corporate Governance Committee considers to be valuable assets for the Board of Directors. | |
 | Dennis M. Bone The Nominating and Corporate Governance Committee believes that Mr. Bone’s experience, which brings a broader corporate perspective, as well as his extensive community involvement, to be assets to the Board of Directors. | |
 | Doreen R. Byrnes Ms. Byrnes has extensive experience with executive recruitment, retention and compensation as well as a strong understanding of the employees and markets served by Investors Bank. This experience provides a unique perspective to the Board of Directors. The Nominating and Corporate Governance Committee considers Ms. Byrnes’ skills and experience to be assets to the Board of Directors. | |
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 | William V. Cosgrove non-Section 16 officer of Investors Bank since Investors Bancorp’s acquisition of Summit Federal Bankshares, Inc. and Summit Federal Savings Bank in June 2008 through his retirement from Investors Bank on October 1, 2011. Mr. Cosgrove was President and Chief Executive Officer of Summit Federal Savings Bank from 2003 until the acquisition of Summit Federal Savings Bank by Investors Bank in 2008. Mr. Cosgrove has over 50 years of experience in banking and has served as president of the N.J. Council of Federal Savings Institutions, and the Union County Savings League. In addition, he served on the Board of Governors of the New Jersey Savings League. Mr. Cosgrove is a member of the NACD, where he continues his education.Mr. Cosgrove’s extensive experience in the banking industry and local markets bring valuable expertise to the Board of Directors. The Nominating and Corporate Governance Committee considers Mr. Cosgrove’s financial and leadership skills and his experience and knowledge of the financial services industry in general to be assets to the Board of Directors. | |
 | Kevin Cummings 26-year career with the independent accounting firm of KPMG LLP, where he had been partner for 14 years. Immediately prior to joining Investors Bank, he was an audit partner in KPMG’s Financial Services practice in their New York City office and lead partner on a major commercial banking client. Mr. Cummings also worked in the New Jersey community bank practice for over 20 years. Mr. Cummings has a Bachelor’s degree in Economics from Middlebury College and a Master’s degree in Business Administration from Rutgers University. He is the former Chairman of the Board of the New Jersey Bankers Association and sits on the Board of Trustees of the Scholarship Fund for Inner-City Children and the Board of Trustees at St. Benedict’s Preparatory School. In addition, Mr. Cummings is a member of the Board of the Federal Home Loan Bank of New York and the Community Foundation of New Jersey.Mr. Cummings is a certified public accountant and his background in public accounting enhances the board of directors’ oversight of financial reporting and disclosure issues. The Nominating and Corporate Governance Committee considers Mr. Cummings’ leadership skills and knowledge of accounting, auditing and corporate governance in the financial services industry to be assets to the Board of Directors. | |
 | John E. Harmon, Sr. The Nominating and Corporate Governance Committee considers Mr. Harmon’s skills and experience in community and business development, inclusion and finance to be assets to the Board of Directors. | |
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 | Michele N. Siekerka Mid-Atlantic, first as vice president of human resources and then as senior counsel. Active in numerous civic/professional organizations, Ms. Siekerka is on the Board of Choose New Jersey, New Jersey Innovation Institute, Junior Achievement of New Jersey, the National Association of Corporate Directors NJ Chapter and the Council of State Manufacturing Associations where she also serves as an Executive Committee member. Ms. Siekerka is a former member of the Robbinsville Township Board of Education where she served as President from 2002 to 2005. Professional certifications include NACD Directorship Certification, NACD Board Fellowship and Ford Foundation Fellowship for Regional Sustainable Development.The Nominating and Corporate Governance Committee considers Ms. Siekerka’s legal and government affairs expertise and market knowledge to be assets to the Board of Directors. | |
 | Paul N. Stathoulopoulos to-date. Starting in 1969, Mr. Stathoulopoulos was employed by the Atlantic Bank of New York, where his last position was Senior Vice President &Officer-in-Charge Mr. Stathoulopoulos has extensive knowledge of the banking industry and local markets served by Investors Bank. The Nominating and Corporate Governance Committee considers Mr. Stathoulopoulos’s experience and leadership to be assets to the Board of Directors. | |
 | Kim Wales The Nominating and Corporate Governance Committee considers Ms. Wales’s skills and experience in technology, fintech and information security to be assets to the Board of Directors. | |
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Executive Officers of the Bank Who Are Not Also Directors
 | Richard S. Spengler 21-year career with First Savings Bank, Woodbridge, New Jersey where he served as Executive Vice President and Chief Lending Officer from 1999 to 2004. Mr. Spengler holds a Bachelor’s degree in Business Administration from Rutgers University. | |
 | Paul Kalamaras | |
 | Sean Burke | |
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Corporate Governance Matters
Investors Bancorp is committed to maintaining sound corporate governance guidelines and very high standards of ethical conduct and is in compliance with applicable corporate governance laws and regulations. The following are key features of our corporate governance practices:
What We Do
| ✓ | The Board and management regularly focus on strategy and planning. |
| ✓ | Of the Board’s current 12 Directors, 9 are independent, including the Lead Independent Director. |
| ✓ | Our Board has adopted a majority voting policy, described below, which requires directors who do not receive majority stockholder support to tender their resignation. |
| ✓ | We have regular and constructive engagement with our stockholders and evaluate and respond to their views and requests. |
| ✓ | The Board held 9 regularly scheduled meetings in 2021. The Board also held 6 special meetings relating to the Company’s proposed merger with Citizens. The Board’s Committees each held 4 to 6 meetings in 2021. The Board met in executive session 9 times, 5 of which were presided over by the Board’s Lead Independent Director. |
| ✓ | Our Director attendance for Board and Committee meetings averaged approximately 99% in 2021, and each Director attended at least 75% of Board and Committee meetings on which the Director served. |
| ✓ | The Board conducts annual self-evaluations. |
| ✓ | New Directors are provided with an orientation package and attend Board orientation and policy training sessions. |
| ✓ | The Board has a robust Director Education Program to keep abreast of significant risks and compliance issues; laws, regulations and requirements applicable to the Company; corporate governance best practices; products and services offered by the Company; changes in the financial services industry; and enhancements in technology and platforms relating to the financial services industry and the delivery and availability of banking products and services. |
| ✓ | Robust stock ownership guidelines for directors and Named Executive Officers are in place. |
| ✓ | We have specific policies and procedures to align executive compensation with long-term stockholder interests; these policies and procedures are routinely reviewed and appropriately revised by the Compensation and Benefits Committee in conjunction with an independent compensation consultant. |
| ✓ | We have a clawback policy that applies to the performance-based incentive compensation paid to our Named Executive Officers. |
| ✓ | The Board reviews management talent and succession planning at least annually. |
| ✓ | The Company makes ongoing investments in systems and technology, as well as training and education for all employees and Directors to combat cybersecurity threats. |
| ✓ | The Board understands the importance of maintaining regular, open, and transparent communications with our regulators. |
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| ✓ | Our Board has oversight of risk management with a focus on the most significant enterprise risks facing our Company, including compliance, credit, legal, liquidity, market, operational, cybersecurity, reputational, and strategic risks. |
| ✓ | We have guidelines governing the use of pre-established trading plans for transactions in our securities. |
| ✓ | The Board actively utilizes internal and external experts in the matters of audit, governance, compensation, stockholder interests and risk management. |
What We Don’t Do
| ✘ | We prohibit all hedging of Investors Bancorp common stock by directors and executive officers. |
| ✘ | We prohibit pledging of Investors Bancorp common stock as collateral by directors and executive officers. |
| ✘ | We prohibit short sales of Investors Bancorp common stock by directors and executive officers. |
| ✘ | No immediate family relationships exist between any of our directors or executive officers. |
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Board of Directors Meetings and Committees
The Board of Directors of Investors Bancorp and Investors Bank each met nine times during 2021. The Board of Directors of Investors Bank currently maintains four standing committees: the Nominating and Corporate Governance Committee, the Audit Committee, the Compensation and Benefits Committee and the Risk Oversight Committee.
No director attended fewer than 75% of the total number of Board meetings held by the Investors Bancorp and Investors Bank Board of Directors and all committees of the Boards on which they served (for the period they served) during 2021. In addition, all but one of Investors Bancorp’s directors attended the annual meeting of stockholders held on May 25, 2021.
Board and Committee Composition
The table below indicates the members and Chairs of the Board of Directors and each of its Committees as of January 31, 2022 as well as the number of meetings for each Committee in 2021.
Director | Position(s) Held With Investors Bancorp | Nominating and Corporate Governance Committee | Audit Committee | Compensation and Benefits Committee | Risk Oversight Committee | |||||
| Robert C. Albanese | Director | Chair(1) | Member | Member | ||||||
| Dennis M. Bone | Lead Independent Director | Member | Member | Member | Member | |||||
| Doreen R. Byrnes | Director | Chair | Member | Member | ||||||
| Domenick A. Cama | Director, President and Chief Operating Officer | |||||||||
| William V. Cosgrove | Director | Member | Member | Member | ||||||
| Kevin Cummings | Chairman and Chief Executive Officer | |||||||||
| James J. Garibaldi | Director | Member | ||||||||
| John E. Harmon, Sr. | Director | Member | Member | Member | ||||||
| Michele N. Siekerka | Director | Member | Chair | Member | ||||||
| Paul N. Stathoulopoulos | Director | Member(1) | Member | Member | ||||||
| Kim Wales | Director | Member | Member | Member | ||||||
| James H. Ward III | Director | Member | Member | Chair | ||||||
Number of Meetings | 4 | 6 | 6 | 4 |
| (1) | The Board considers Messrs. Albanese and Stathoulopoulos each an “audit committee financial expert”. |
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Director Skills
The Nominating and Corporate Governance Committee considers a skills matrix that represents certain of the skills that the Committee identified as particularly valuable in the effective oversight of the Company and its business. The following matrix identifies those skills and the Directors who possess each such skill, which highlights the diversity of skills on the Board. The matrix also indicates which Directors are considered diverse, based on race and gender.
Director | Diverse | Audit/ Accounting/ Finance/ Capital Allocation | Banking and Financial Services | Executive Level Experience | Business Operations and Technology | Risk Management | Human Capital Management | Environmental/ Social/ Governance | ||||||||
| Robert C. Albanese | • | • | • | • | • | |||||||||||
| Dennis M. Bone | ||||||||||||||||
| • | • | • | • | • | ||||||||||||
| • | • | • | • | • | • | |||||||||||
| • | • | • | • | • | • | |||||||||||
| • | • | • | • | • | • | • | ||||||||||
| • | • | • | • | |||||||||||||
| • | • | • | ||||||||||||||
| • | • | • | • | • | • | |||||||||||
| • | • | • | • | • | • | • | ||||||||||
| Paul N. Stathoulopoulos | • | • | • | • | • | |||||||||||
| Kim Wales | • | • | • | • | • | • | ||||||||||
| James H. Ward III | • | • | • | • | • | |||||||||||
Pursuant to our Nominating and Corporate Governance Guidelines (the “Corporate Governance Guidelines”), the Board of Directors conducts an annual review of director independence. As a result of the review performed in January 2022, the Board of Directors determined, based upon the recommendation of the Nominating and Corporate Governance Committee, that 9 of the 12 members of the Board of Directors, and each member of the Compensation and Benefits, Nominating and Corporate Governance and Audit Committees, were independent, as affirmatively determined by the Board of Directors consistent with the Nasdaq corporate governance listing rules.
In connection with this review, the Board of Directors considers all relevant facts and circumstances relating to relationships that each director, his or her immediate family members and their respective related interests has with Investors Bancorp and its subsidiaries.
Following this review, the Board of Directors determined that Messrs. Albanese, Bone, Cosgrove, Harmon, Stathoulopoulos and Ward, and Mses. Byrnes, Siekerka and Wales, are independent as defined in the Nasdaq corporate governance listing rules. The Board of Directors determined that Messrs. Cummings and Cama are not independent as they are Investors Bank employees. Mr. Garibaldi is not independent due to commercial real estate brokerage services provided by his company to Investors Bank, the subsidiary of Investors Bancorp, in 2018.
Board Leadership Structure and Lead Independent Director
Since 2018, Mr. Cummings has held the positions of Chairman of the Board and Chief Executive Officer. The Board believes that the current Board leadership structure, with Mr. Cummings in the combined Chairman and CEO position, and with a separate Lead Independent Director who is independent under the Nasdaq listing rules and has the principal duties specified in our Corporate Governance Guidelines, is appropriate for our Company. We believe that combining the roles of Chairman and CEO facilitates themanagement of the
day-to-day
11
Company. Holding both roles best positions Mr. Cummings to be aware of major issues and challenges facing the Company on aand long-term basis and to continue to identify key risks and developments that should be brought to the Board’s attention. The combined role also provides a single point of leadership for the Company in order for the Company to maintain a unified message and strategic direction.
day-to-day
The combined Chairman and CEO position is counterbalanced by our strong Lead Independent Director position, which is currently held by Dennis M. Bone. Our Corporate Governance Guidelines provide that the Lead Independent Director shall be an “independent outside director”, which is defined as an independent director who has never been employed by the Company or Investors Bank. The Lead Independent Director, who has the responsibilities described below, provides an independent voice on issues facing the Company and ensures that key issues are brought to the Board’s attention. The Board and its committees also regularly hold executive sessions with no members of management present, thereby providing an opportunity for the independent directors to discuss their views freely. The executive sessions of the Board are presided over by the Lead Independent Director. During 2021, 9 executive sessions were held, of which were conducted by the independent directors.
The Lead Independent Director presently has the following duties:
Preside at all meetings of the independent outside directors and independent directors;
Coordinate as necessary Company-related activities of the independent outside directors;
Facilitate communications among the Chairman of the Board, Company management and the independent outside directors;
Consult with the Chairman of the Board with respect to meeting agendas and schedules, as well as Board materials, prior to Board meetings;
Consult with the Chairman of the Board to assure that appropriate topics are being discussed with sufficient time allocated for each;
Preside at Board meetings when the Chairman is not present;
Approve all meeting agendas for the Board;
Solicit and receive topic suggestions from other directors to be discussed at upcoming executive sessions and facilitate discussion on key issues outside of meetings;
If requested by our larger stockholders, ensure that he or she is available for consultation and direct communication with them;
Follow up on meeting outcomes and management deliverables;
Communicate, as appropriate, with our regulators;
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Meet regularly with the Chairman/CEO on issues and opportunities facing the Company, including business strategy, regulatory matters and succession planning; and
Act as an advisor to the Chairman/CEO.
The Board itself has substantial independence, with 9 of the 10
non-employee
Directors qualifying as independent under Nasdaq corporate governance listing rules.We recognize that different board leadership structures may be appropriate for the Company at different times and in different situations. As part of the Nominating and Corporate Governance Committee’s and the Board’s annual evaluation processes, the Nominating and Corporate Governance Committee and the Board will evaluate the Company’s leadership structure to ensure that it provides the most appropriate structure.
Corporate Governance Guidelines
The Board of Directors has adopted Corporate Governance Guidelines, which are posted on the “Governance Documents” section of the “Investor Relations” page of Investors Bank’s website at The Corporate Governance Guidelines cover the general operating policies and procedures followed by the Board of Directors including, among other things:
www.investorsbank.com
.Mission of the Board;
Board size and composition;
Director responsibilities and qualifications;
Lead Independent Director responsibilities;
Independence standards for Directors;
Board nominating procedures and election criteria;
Board committees;
Director access to officers and employees;
Stock ownership policies;
Director compensation;
Director continuing education;
Annual Director performance evaluation;
Annual CEO evaluation and succession; and
Our Code of Business Conduct and Ethics.
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The Corporate Governance Guidelines, which were last updated in May 2020, provide for the independent directors of the Board of Directors to meet in regularly scheduled executive sessions. During 2021, 9 executive sessions were held, of which 5 were conducted by the independent directors.
The Nominating and Corporate Governance Committee periodically reviews our Bylaws and Corporate Governance Guidelines to maintain effective and appropriate standards of corporate governance. The Board adopted the Corporate Governance Guidelines to further its longstanding and continuing goal of providing effective governance of our Company’s business and affairs for the long-term benefit of stockholders. The Nominating and Corporate Governance Committee and the Board affirm their commitment of considering and, where appropriate, adopting, revisions and enhancements to our Bylaws and Corporate Governance Guidelines which would further our alignment and engagement with our stockholders.
Anti-Hedging Policy
The Corporate Governance Guidelines include an anti-hedging policy, which prohibits directors and executive officers from engaging in or effecting any transaction designed to hedge or offset the economic risk of owning shares of Company common stock. Accordingly, any hedging, derivative or other equivalent transaction that is specifically designed to reduce or limit the extent to which declines in the trading price of Company common stock would affect the value of the shares of Company common stock owned by an executive officer or director is prohibited. Cashless exercises of employee stock options are not deemed short sales and are not prohibited. This policy does not prohibit transactions in the stock of other companies and does not apply to employees who are not executive officers.
Prohibition on Pledging Securities
Company policy prohibits directors and executive officers from holding Company securities in a margin account or pledging Company securities as collateral for any other loan. An exception to this prohibition may be granted, in the sole discretion of the Board and in limited circumstances, after giving consideration to, among other factors, the number of shares proposed to be pledged as a percentage of the director’s or executive officer’s total shares held. No shares are currently pledged by a director or executive officer.
Stock Ownership Requirements
The Board of Directors believes that it is in the best interest of Investors Bancorp and its stockholders to align the financial interests of its executives and directors with those of stockholders. Accordingly, the Corporate Governance Guidelines include Stock Ownership Guidelines for Named Executive Officers and directors of Investors Bancorp that require the following minimum investment in Investors Bancorp common stock:
A number of shares having a market value equal to five times (5.0x) annual base salary
A number of shares having a market value equal to three times (3.0x) annual base salary
25,000 shares
Stock holdings are expected to be achieved within five years of either the implementation of the Ownership Guidelines or the starting date of the individual, whichever is later. Stock ownership for Named Executive Officers and directors is reviewed as of the last day of each calendar quarter.
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Nominating and Corporate Governance Committee
Each member of the Nominating and Corporate Governance Committee is considered independent as defined in the Nasdaq corporate governance listing rules. The Nominating and Corporate Governance Committee’s Charter and Corporate Governance Guidelines are posted on the “Governance Documents” section of the “Investor Relations” page of Investors Bank’s website at
www.investorsbank.com
.
As noted in the Nominating and Corporate Governance Committee Charter, the purpose of the committee is to assist the Board in identifying individuals to become Board members, determine the size and composition of the Board and its committees, monitor Board effectiveness and implement the Corporate Governance Guidelines.
In furtherance of this purpose, this Committee, among other things, shall:
Lead the search for individuals qualified to become members of the Board of Directors and develop criteria (such as independence, experience relevant to the needs of the Company, leadership qualities, diversity, stock ownership) for board membership;
Make recommendations to the Board concerning Board nominees and stockholder proposals;
Develop, recommend and oversee the annual self-evaluation process of the Board and its committees;
Develop and annually review corporate governance guidelines applicable to the Company;
Review and monitor the Board’s compliance with Nasdaq corporate governance listing rules for independence; and
Review, in consultation with the Compensation and Benefits Committee, Directors’ compensation and benefits.
In accordance with the Corporate Governance Guidelines, the Committee considers all qualified director candidates identified by members of the Committee, by other members of the Board of Directors, by senior management and by stockholders. Stockholders recommending a director candidate to the Committee may do so by submitting the candidate’s name, resume and biographical information to the attention of the Chairperson of this Committee in accordance with procedures listed in this Amendment No. 1 to the Annual Report on Form
10-K contains
(also available on Investors Bancorp’s website). All stockholder recommendations for director candidates that the Chairperson of the Committee receives in accordance with these procedures will be presented to the Committee for its consideration. The Committee’s recommendations to the Board are based on its determination as to the suitability of each individual, and the slate as a whole, to serve as directors of Investors Bancorp.15
The Nominating and Corporate Governance Committee and the Board recognize that it is important for the Company’s directors to possess a diverse array of backgrounds and skills, including executive management experience, financial services experience, and educational and professional achievement. When considering new candidates, the Nominating and Corporate Governance Committee, with input from the Board, will seek to ensure that the Board reflects a range of talents, ages, skills, diversity and expertise, particularly in the areas of accounting and finance, management, regulatory and risk management and leadership sufficient to provide sound and prudent guidance with respect to our operations and interests. In addition, the Nominating and Corporate Governance Committee considers diversity in demographic and professional backgrounds among the factors used to identify nominees for directors. The goal of the Nominating and Corporate Governance Committee is to assemble and maintain a Board comprised of individuals with a broad spectrum of skills, experience and expertise combined with a reputation for integrity to carry out the Board’s responsibilities with respect to oversight of the Company’s operations.
Criteria for Election
Investors Bancorp’s goal is to have a Board of Directors whose members have diverse professional backgrounds and have demonstrated professional achievement with the highest personal and professional ethics and integrity and whose values are compatible with those of Investors Bancorp. While the Nominating and Corporate Governance Committee does not have a formal policy with regard to the consideration of diversity in identifying director nominees, the Committee members recognize the benefits of a Board whose members possess a diversity of business experience and demographic backgrounds and seek to identify nominees with a range of background and experience. Important factors considered in the selection of nominees for director include experience in positions that develop good business judgment, that demonstrate a high degree of responsibility and independence, and that show the individual’s ability to commit adequate time and effort to serve as a director.
Nominees should have a familiarity with the markets in which Investors Bancorp operates, be involved in activities that do not create a conflict with his/her responsibilities to Investors Bancorp and its stockholders and have the capacity and desire to represent the balanced, best interests of the stockholders of Investors Bancorp as a group, and not primarily a special interest group or constituency.
The Nominating and Corporate Governance Committee will also take into account whether a candidate satisfies the criteria for “independence” as defined in the Nasdaq corporate governance listing rules, and, if a candidate with financial and accounting expertise is sought for service on the Audit Committee, whether the individual qualifies as an audit committee financial expert.
Procedures for the Nomination of Directors by Stockholders
Although, as previously disclosed, the Company does not anticipate holding an annual meeting of stockholders in 2022, the Nominating and Corporate Governance Committee has adopted procedures for the consideration of Board candidates submitted by stockholders. Stockholders can submit the names of candidates for director by writing to the Chair of the Nominating and Corporate Governance Committee, at Investors Bancorp, Inc., 101 JFK Parkway, Short Hills New Jersey 07078. The submission must include the following information:
a statement that the writer is a stockholder and is proposing a candidate for consideration by the Nominating and Corporate Governance Committee;
16
the qualifications of the candidate and why this candidate is being proposed;
the name, address and contact information for the nominated candidate, and the number of forward-looking statementsshares of Investors Bancorp common stock that are owned by the candidate (if the candidate is not a holder of record, appropriate evidence of the stockholder’s ownership should be provided);
the name and address of the nominating stockholder as he/she appears on Investors Bancorp’s books, and number of shares of Investors Bancorp common stock that are owned beneficially by such stockholder (if the stockholder is not a holder of record, appropriate evidence of the stockholder’s ownership will be required);
a statement of the candidate’s business and educational experience;
such other information regarding the candidate as would be required to be included in a proxy statement pursuant to SEC Regulation 14A;
a statement detailing any relationship between the candidate and Investors Bancorp and between the candidate and any customer, supplier or competitor of Investors Bancorp;
detailed information about any relationship or understanding between the proposing stockholder and the candidate; and
a statement that the candidate is willing to be considered and willing to serve as a director if nominated and elected.
A nomination submitted by a stockholder for presentation by the stockholder at an annual meeting of stockholders must comply with the procedural and informational requirements described in “Advance Notice of Business to be Conducted at an Annual Meeting.”
Stockholder and Interested Party Communication with the Board
A stockholder of Investors Bancorp who wants to communicate with the Board or with any individual director can write to the Chair of the Nominating and Corporate Governance Committee at Investors Bancorp, Inc., 101 JFK Parkway, Short Hills, New Jersey 07078. The letter should indicate that the author is a stockholder and if shares are not held of record, should include appropriate evidence of stock ownership. Depending on the subject matter, the Chair will:
Forward the communication to the director(s) to whom it is addressed;
17
Handle the inquiry directly, for example where it is a request for information about Investors Bancorp or it is a stock-related matter; or
Not forward the communication if it is primarily commercial in nature, relates to an improper or irrelevant topic, or is unduly hostile, threatening, illegal or otherwise inappropriate
At each Board meeting, the Chair of the Nominating and Corporate Governance Committee shall present a summary of all communications received since the last meeting and make those communications available to the directors upon request.
Code of Business Conduct and Ethics
Our employees, executive officers and directors take pride in our ability to maintain the highest ethical standards while continuing to provide products and services to our communities. Protecting our reputation for integrity is dependent on a shared commitment to our Core Values: Character, Commitment, Cooperation and Community, and treating all our stakeholders—our customers, clients, employees, stockholders, business partners and communities we serve—with integrity.
The Board has adopted a Code of Business Conduct and Ethics (the “Code”) to be followed by Investors Bancorp’s employees, officers (including its CEO, COO, CFO and CAO) and directors to communicate our commitment to ethical conduct and to describe our standards and expectations for integrity and ethical behavior. Directors, Named Executive Officers, executive officers and employees are required to read, understand and comply with the Code. Investors Bancorp requires that all new employees take Code training shortly after their commencement of employment and requires annual training for all directors and employees. All employees and directors must certify annually that they have read the Code and agree to abide by it.
The Code provides that any waivers for directors or executive officers may be made only by the Board of Directors and must be promptly disclosed to the stockholders. Investors Bancorp will post on its website any amendments to the Code and any waivers granted to its directors or executive officers. During 2021, the Board of Directors did not receive nor grant any request for directors or executive officers for waivers under the provisions of the Code.
Investors Bancorp expects and encourages its employees to report behavior that concerns them or may represent a violation of the Code. To ensure that our employees are comfortable in reporting such concerns or violations of the Code, we offer several channels by which employees may raise an issue or concern, including any actual or potential violation of the Code. One such channel is EthicsPoint, a website and telephone hotline that is available to employees 24 hours a day, 7 days a week. EthicsPoint complaints or concerns can be submitted anonymously. In addition, Investors Bancorp does not permit retaliation of any kind for good faith reports of ethical violations or misconduct of others. All reports are investigated promptly and fully, and effective remedial action is taken when appropriate. The Code encourages our employees to report any behavior that concerns them or may represent a violation of the Code. We also refer within the meaningCode to specific reference to our Stand Up and Speak Policy, which was last modified in July 2020. Please see the “Stand Up and Speak Policy” discussion herein for further discussion relating to our Stand Up and Speak Policy.
18
The Code was last modified in November 2021 and is available on the “Governance Documents” section of the “Investors Relations” page of Investors Bank’s website at
www.investorsbank.com
.Delinquent Section 27A16(a) Reports
Investors Bancorp’s common stock is registered with the SEC pursuant to Section 12(b) of the Exchange Act. The executive officers and directors of Investors Bancorp, and beneficial owners of greater than 10% of Investors Bancorp’s common stock, are required to file reports on Forms 3, 4 and 5 with the SEC disclosing beneficial ownership and changes in beneficial ownership of Investors Bancorp’s common stock. The SEC rules require disclosure in Investors Bancorp’s Proxy Statement or Annual Report on Form
10-K
of the failure of an executive officer, director or 10% beneficial owner of Investors Bancorp’s common stock to file a Form 3, 4, or 5 on a timely basis. Based on Investors Bancorp’s review of ownership reports and confirmations by executive officers and directors, Investors Bancorp believes that, during 2021, its officers, directors and beneficial owners of greater than 10% of its common stock timely filed all required reports.Risk Oversight Matters
The Board’s Role in Cybersecurity Oversight
As a financial services company entrusted with the safeguarding of sensitive information, our Board of Directors believes that a strong enterprise cybersecurity program is vital to effective cybersecurity risk management. The Board of Directors is committed to engaging in robust oversight of the Company’s cybersecurity program on an ongoing basis. The Board of Directors provides oversight of management’s efforts to address cybersecurity risk through the delivery of reports, including updates on current trends and issues, as well as presentations at meetings of the Risk Oversight Committee and the Board. The reports and presentations that the Board and the Risk Oversight Committee receive focus on the threat environment and vulnerability assessments, as well as specific cyber incidents and management’s efforts to monitor, detect and prevent cyber threats to the Company. These reports include descriptions of (i) management’s implementation of backup systems and other safeguards to support our operations; (ii) our establishment and regular testing of disaster recovery procedures; and (iii) regular review and assessment of our third-party service providers’ information systems safeguards against cyber-attacks, information breach or loss of information.
Risk Oversight Committee
The entire Board of Directors is engaged in risk oversight. However, the Board established a separate standing Risk Oversight Committee to facilitate its risk oversight responsibilities. The Chief Executive Officer and Chief Operating Officer serve as a resource to the Risk Oversight Committee but have no vote in the committee’s decision-making process. The Risk Oversight Committee Charter is posted on the “Governance Documents” section of the “Investors Relations” page of Investors Bank’s website at
www.investorsbank.com
.The Risk Oversight Committee has responsibility for enterprise-wide risk management and determining that significant risks of Investors Bancorp are monitored by the Board of Directors or one of its standing committees. In addition, the Risk Oversight Committee reviews new products and services proposed to be implemented by management to determine that
19
appropriate risk identification has occurred and that controls are considered to mitigate identified risks to an acceptable level. The Risk Oversight Committee is also responsible for reviewing and monitoring enterprise risk including interest rate, liquidity, operational, compliance, cybersecurity, strategic and reputational risks.
Audit Committee Matters
Audit Committee
The Board has determined that each member of the Audit Committee is independent as defined in the Nasdaq corporate governance listing rules and under SEC Rule
10A-3.
The Board considers Mr. Albanese, the Chair of the Audit Committee, and Mr. Stathoulopoulos each an “audit committee financial expert” as that term is used in the rules and regulations of the SEC.The Audit Committee operates under a written charter adopted by the Board of Directors. The Audit Committee’s Charter is posted on the “Governance Documents” section of the “Investor Relations” page of Investors Bank’s website at
www.investorsbank.com
.As noted in the Audit Committee Charter, the primary purpose of the Audit Committee is to assist the Board in overseeing:
The integrity of Investors Bancorp’s financial statements;
Investors Bancorp’s compliance with legal and regulatory requirements;
The independent auditor’s qualifications and independence;
The performance of Investors Bancorp’s internal audit function and independent auditor; and
Investors Bancorp’s system of disclosure controls and system of internal controls regarding finance, accounting, and legal compliance.
In furtherance of this purpose, this committee, among other things, shall:
Retain, oversee and evaluate a firm of independent registered public accountants to audit the annual financial statements;
Review the integrity of Investors Bancorp’s internal control over financial reporting, both internal and external, in consultation with the independent registered public accounting firm and the internal auditor;
Review the financial statements and the audit report with management and the independent registered public accounting firm;
Review earnings and financial releases and quarterly and annual reports filed with the SEC; and
Approve all engagements for audit and
non-audit
services by the independent registered public accounting firm.20
The Audit Committee reports to the Board of Directors on its activities and findings.
Audit Committee Report
Pursuant to rules and regulations of the SEC, this Audit Committee Report shall not be deemed incorporated by reference by any general statement incorporating by reference this Amendment No. 1 to the Annual Report on FormAct, and Section 21E of the Securities Exchange Act of 1934, as amended, except to the extent that Investors Bancorp specifically incorporates this information by reference, and otherwise shall not be deemed “soliciting material” or to be “filed” with the SEC subject to Regulation 14A or 14C of the SEC or subject to the liabilities of Section 18 of the Exchange Act. These
10-K
into any filing under the Securities Act of 1933, as amended, or the Securities Management has the primary responsibility for Investors Bancorp’s internal control and financial reporting process, and for making an assessment of the effectiveness of Investors Bancorp’s internal control over financial reporting. The independent registered public accounting firm is responsible for performing an independent audit of Investors Bancorp’s consolidated financial statements mayin accordance with standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”) and to issue an opinion on those financial statements, and for providing an opinion on the Company’s internal control over financial reporting. The Audit Committee’s responsibility is to monitor and oversee these processes.
As part of its ongoing activities, the Audit Committee has:
reviewed and discussed with management, and the independent registered public accounting firm, the audited consolidated financial statements and the internal control procedures of Investors Bancorp for the year ended December 31, 2021;
discussed with the independent registered public accounting firm the matters required to be identified discussed
by the useapplicable requirements of the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would”PCAOB and similar termsthe SEC; and phrases, including references to assumptions.
received the written disclosures and analyses madethe letter from the independent registered public accounting firm required by us in lightapplicable requirements of our management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors are outlined in Item 1A. Risk Factors herein and include, without limitation,PCAOB regarding the following:
Based on the risk of an economic slowdown that would adversely affect credit qualityreview and loan originations.
10-K Quarterly Reports on Form 10-Q, Current Reports on Form 8-K
for filing with the SEC. In addition, the Audit Committee approved there-appointment
of KPMG LLP as the independent registered public accounting firm for the year ending December 31, 2022.21
Audit Committee of Investors Bancorp, Inc.
Robert C. Albanese,
Chair
Dennis M. Bone,
Member
William V. Cosgrove,
Member
John E. Harmon, Sr.,
Member
Paul N. Stathoulopoulos,
Member
Kim Wales,
Member
James H. Ward III,
Member
Compensation and amendments to these reports filed or furnished pursuant to Sections 13(a) or 15(d)Benefits Committee Matters
Compensation and Benefits Committee
The Board has determined that each member of the Exchange Act,Compensation and Benefits Committee is independent as amended, are made available at no costdefined in the Investor RelationsNasdaq corporate governance listing rules and SEC Rule
10C-1.
The Compensation and Benefits Committee’s Charter is posted on the “Governance Documents” section of the “Investor Relations” page of Investors Bank’s website atwww.investorsbank.com
.As noted in the Compensation and Benefits Committee Charter, the purpose of the committee is to assist the Board in carrying out the Board’s overall responsibility relating to executive compensation, incentive compensation and equity and
non-equity-based
benefit plans.In furtherance of this purpose, this committee, among other things, shall:
Review and recommend to the independent directors of the Board for approval the Chief Executive Officer’s annual compensation, including salary, cash incentive, and equity compensation;
Review and recommend to the Board the evaluation process and compensation for Investors Bancorp’s executive officers and coordinate compensation determinations and benefit plans for all employees of Investors Bancorp;
Review Investors Bancorp’s incentive compensation and equity-based plans and make changes in such plans as needed;
Review, as appropriate and in consultation with the Nominating and Corporate Governance Committee, director compensation and benefits; and
Review the independence of the Compensation and Benefits Committee members, legal counsel and compensation consultants.
Review and discuss with management and the independent registered public accounting firm, the audited net assets of the 401(k) Plan and the financial statements of the ESOP.
In addition to these duties this Committee shall assist the Board in recruiting and succession planning.
The Compensation and Benefits Committee retains responsibility for all compensation decisions and recommendations to the Board of Directors as to Investors Bancorp’s Named Executive Officers. The Compensation and Benefits Committee utilizes information and benchmarks from an independent compensation consulting firm, industry trends, practices
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among our peer groups, and from other sources, to determine how executive compensation levels compare to those companies within the industry. The Compensation and Benefits Committee may review published data for companies of similar size, location, financial characteristics and stage of development among other factors.
In designing the compensation program for Investors Bancorp, this Committee takes into consideration methods to avoid encouraging the taking of excessive risk by executive management or by other employees. This Committee assessed risks posed by the incentive compensation paid to executive management and other employees and determined that Investors Bancorp’s compensation policies, practices and programs do not pose risks that are reasonably likely to have a material adverse effect on Investors Bancorp. In furtherance of the Committee’s ongoing oversight of the Company’s website, www.investorsbank.com, as soon as reasonably practicable afterexecutive incentive compensation program, the Board in 2018 adopted the Executive Incentive Compensation Approval Policy. The purpose of this policy is to provide enhanced oversight, review, assessment and approval processes for this Committee, the Risk Oversight Committee and the Audit Committee in the setting of incentive compensation goals for the CEO, COO, the other Named Executive Officers, and other designated executive officers of the Company, files such material with, or furnishes itto ensure that our incentive compensation arrangements appropriately balance risk and financial results in a manner that do not pose undue risk to the SEC. Company.
The Company’sbasic elements of Investors Bancorp’s executive compensation program include base salary, annual cash incentive awards, long-term equity incentive awards and other benefit arrangements. In addition to determining the compensation payable to Investors Bancorp’s executive officers, including the CEO and other Named Executive Officers, the Compensation and Benefits Committee evaluates senior executive and director compensation plans and programs, administers and has discretionary authority over the issuance of equity awards under Investors Bancorp’s equity compensation plans and oversees the preparation of a report on executive compensation for inclusion in Investors Bancorp’s annual proxy statement or Annual Report on Form
10-K.
The Compensation and Benefits Committee is supported by the CEO, COO and other members of executive management, whom serve as a resource by providing input regarding Investors Bancorp’s executive compensation program and philosophy.Compensation and Benefits Committee Interlocks and Insider Participation
During 2021, Ms. Siekerka served as chairperson of the Compensation and Benefits Committee and Ms. Wales, Messrs. Albanese, Bone, Stathoulopoulos and Ward served as members. None of these directors has ever been an officer or employee of Investors Bancorp; or an executive officer of another entity at which one of Investors Bancorp’s executive officers serves on the Board of Directors, or had any transactions or relationships with Investors Bancorp in 2021 requiring specific disclosures under SEC filings arerules or Nasdaq listing standards. Ms. Byrnes, who also available throughserved as a member of the SEC’s websiteCompensation and Benefits Committee during 2021, is neither an executive officer of another entity at www.sec.gov.which one of Investors Bancorp’s executive officers serves on the Board of Directors, nor had transactions or relationships with Investors Bancorp in 2021 requiring specific disclosures under SEC rules. Ms. Byrnes was an officer of Investors Bank prior to her retirement in 2007.
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ITEM 11.
EXECUTIVE COMPENSATION
Director Compensation
Director Fees
Each of the individuals who serve as a director of Investors Bancorp also serves as a director of Investors Bank. The
non-employee
directors of Investors Bancorp and Investors Bank are compensated separately for service on each entity’s board. Employee directors are not compensated for serving as directors. The following table describes the components ofnon-employee
director compensation during 2021:Compensation Element | Director Compensation ($) | ||||
Annual Fee for Investors Bancorp Non-Employee Director | 24,000 | ||||
Annual Fee for Investors Bank Non-Employee Director | 73,200 | ||||
Annual Fee for Lead Independent Director | 25,000 | ||||
Annual Fee for Committee Chair | 10,000 | ||||
Annual Fee for Audit Committee Member | 15,000 | ||||
Annual Fee for Compensation and Benefits Committee Member | 15,000 | ||||
Annual Fee for Nominating and Corporate Governance Committee Member | 7,500 | ||||
Annual Fee for Risk Oversight Committee Member | 10,000 | ||||
The Company is subject to regulation as a bank holding company by the Federal Reserve Board. The Company neither owns nor leases any property, but instead uses the premises, equipment and furnitureBoard of Directors establishesBank.Compensation and Benefits Committee. The Company currently employs as officers only certain persons who are also officersCompensation and Benefits Committee, on not less than an annual basis, engages the services of a compensation consultant and its external surveys to assist in the Bank and uses the support staffcommittee’s review of the Bank from time to time. These persons are not separately compensated by the Company. The Company may hire additional employees, as appropriate. director compensation.
non-employee
director compensation based on recommendations of the | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family loans | $ | 7,865,592 | 34.8 | % | $ | 7,122,840 | 34.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate loans | 5,371,758 | 23.8 | 4,947,212 | 23.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial loans | 4,113,792 | 18.2 | 3,575,641 | 17.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction loans | 550,950 | 2.4 | 404,367 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial loans | 17,902,092 | 79.2 | 16,050,060 | 76.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | 3,929,170 | 17.4 | 4,119,894 | 19.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other loans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash surrender value | 490,803 | 2.2 | 411,734 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity credit lines | 214,550 | 0.9 | 216,451 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity loans | 60,005 | 0.3 | 70,801 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 1,427 | — | 3,815 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total consumer and other loans | 766,785 | 3.4 | 702,801 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 22,598,047 | 100.0 | % | $ | 20,872,755 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred fees, premiums and other, net (1) | (14,754) | (9,318) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (240,681) | (282,986) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net loans | $ | 22,342,612 | $ | 20,580,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment/Industry | Loan Balance (in millions) | % of Total Segment | ||||||||||||
| Commercial and industrial: | ||||||||||||||
| Accommodation and food service | $ | 290 | 7.0 | % | ||||||||||
| Administrative and support and waste management | 151 | 3.7 | % | |||||||||||
| Agriculture, forestry, fishing and hunting | 23 | 0.6 | % | |||||||||||
| Arts, entertainment, and recreation | 86 | 2.1 | % | |||||||||||
| Construction | 355 | 8.6 | % | |||||||||||
| Educational service | 140 | 3.4 | % | |||||||||||
| Finance and insurance | 263 | 6.4 | % | |||||||||||
| Health care and social assistance | 529 | 12.9 | % | |||||||||||
| Information | 144 | 3.5 | % | |||||||||||
| Management of companies and enterprises | 6 | 0.1 | % | |||||||||||
| Manufacturing | 223 | 5.4 | % | |||||||||||
| Mining, quarrying, and oil and gas extraction | 48 | 1.2 | % | |||||||||||
| Professional, scientific, and technical services | 138 | 3.4 | % | |||||||||||
| Public administration | 1 | 0.0 | % | |||||||||||
| Real estate and rental | 720 | 17.5 | % | |||||||||||
| Retail trade - clothing, home, gasoline, health | 158 | 3.8 | % | |||||||||||
| Retail trade - sporting, hobby, vending, e-commerce | 12 | 0.3 | % | |||||||||||
| Transportation - air, rail, truck, water, pipeline | 331 | 8.0 | % | |||||||||||
| Utilities | 2 | 0.0 | % | |||||||||||
| Wholesale trade | 250 | 6.1 | % | |||||||||||
| Other | 244 | 6.0 | % | |||||||||||
| Total commercial and industrial | $ | 4,114 | 100.0 | % | ||||||||||
| Commercial real estate: | ||||||||||||||
| Accommodation and food service | $ | 150 | 2.8 | % | ||||||||||
| Arts, entertainment, and recreation | 16 | 0.3 | % | |||||||||||
| Health care and social assistance | 253 | 4.7 | % | |||||||||||
| Mixed use property | 493 | 9.2 | % | |||||||||||
| Office | 1,271 | 23.7 | % | |||||||||||
| Retail store | 934 | 17.4 | % | |||||||||||
| Shopping center | 1,159 | 21.6 | % | |||||||||||
| Warehouse | 586 | 10.9 | % | |||||||||||
| Other | 510 | 9.4 | % | |||||||||||
| Total commercial real estate | $ | 5,372 | 100.0 | % | ||||||||||
| Multi-family | 7,866 | |||||||||||||
| Construction | 551 | |||||||||||||
| Residential and consumer | 4,695 | |||||||||||||
| Total loans | $ | 22,598 | ||||||||||||
| At December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
| Multi-Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Total | |||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||
| Amounts Due: | |||||||||||||||||||||||||||||||||||||||||
| In one year or less | $ | 102,670 | $ | 234,857 | $ | 532,564 | $ | 306,923 | $ | 1,501 | $ | 90,926 | $ | 1,269,441 | |||||||||||||||||||||||||||
| After one year: | |||||||||||||||||||||||||||||||||||||||||
| After one through five years | 1,571,835 | 1,425,684 | 1,627,707 | 244,027 | 46,081 | 190,044 | 5,105,378 | ||||||||||||||||||||||||||||||||||
| After five through fifteen years | 6,036,110 | 3,552,060 | 1,817,663 | — | 743,819 | 313,031 | 12,462,683 | ||||||||||||||||||||||||||||||||||
| After fifteen years | 154,977 | 159,157 | 135,858 | — | 3,137,769 | 172,784 | 3,760,545 | ||||||||||||||||||||||||||||||||||
| Total due after one year | 7,762,922 | 5,136,901 | 3,581,228 | 244,027 | 3,927,669 | 675,859 | 21,328,606 | ||||||||||||||||||||||||||||||||||
| Total loans | $ | 7,865,592 | $ | 5,371,758 | $ | 4,113,792 | $ | 550,950 | $ | 3,929,170 | $ | 766,785 | $ | 22,598,047 | |||||||||||||||||||||||||||
| Deferred fees, premiums and other, net | (14,754) | ||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (240,681) | ||||||||||||||||||||||||||||||||||||||||
| Net loans | $ | 22,342,612 | |||||||||||||||||||||||||||||||||||||||
| Due After December 31, 2022 | |||||||||||||||||
| Fixed | Adjustable | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Commercial loans: | |||||||||||||||||
| Multi-family loans | $ | 3,881,477 | $ | 3,881,445 | $ | 7,762,922 | |||||||||||
| Commercial real estate loans | 2,051,572 | 3,085,329 | 5,136,901 | ||||||||||||||
| Commercial and industrial loans | 2,145,582 | 1,435,646 | 3,581,228 | ||||||||||||||
| Construction loans | 23,375 | 220,652 | 244,027 | ||||||||||||||
| Total commercial loans | 8,102,006 | 8,623,072 | 16,725,078 | ||||||||||||||
| Residential mortgage loans | 3,007,209 | 920,460 | 3,927,669 | ||||||||||||||
| Consumer and other loans: | |||||||||||||||||
| Cash surrender value | — | 433,710 | 433,710 | ||||||||||||||
| Home equity credit lines | 13,924 | 170,244 | 184,168 | ||||||||||||||
| Home equity loans | 57,043 | 34 | 57,077 | ||||||||||||||
| Other | 844 | 60 | 904 | ||||||||||||||
| Total consumer and other loans | 71,811 | 604,048 | 675,859 | ||||||||||||||
| Total loans | $ | 11,181,026 | $ | 10,147,580 | $ | 21,328,606 | |||||||||||
| Years Ended December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| (In thousands) | |||||||||||
| Loan originations and purchases | |||||||||||
| Loan originations: | |||||||||||
| Commercial loans: | |||||||||||
| Multi-family loans | $ | 2,434,819 | 1,026,593 | ||||||||
| Commercial real estate loans | 1,244,020 | 605,531 | |||||||||
| Commercial and industrial loans | 1,264,848 | 1,056,086 | |||||||||
| Construction loans | 170,571 | 129,595 | |||||||||
| Total commercial loans | 5,114,258 | 2,817,805 | |||||||||
| Residential mortgage loans | 1,272,596 | 652,501 | |||||||||
| Consumer and other loans: | |||||||||||
| Cash surrender value | 63,322 | 73,023 | |||||||||
| Home equity credit lines | 42,907 | 26,802 | |||||||||
| Home equity loans | 11,953 | 2,704 | |||||||||
| Total consumer and other loans | 118,182 | 102,529 | |||||||||
| Total loan originations | 6,505,036 | 3,572,835 | |||||||||
| Loan purchases: | |||||||||||
| Commercial loans: | |||||||||||
| Multi-family loans | — | 42,500 | |||||||||
| Commercial and industrial loans | — | 115,920 | |||||||||
| Total commercial loans | — | 158,420 | |||||||||
| Residential mortgage loans | 103,686 | — | |||||||||
| Total loan purchases | 103,686 | 158,420 | |||||||||
| Loans sold | (39,261) | (347,896) | |||||||||
| Principal repayments | (5,062,581) | (4,667,506) | |||||||||
Other items, net (1) | 41,747 | (59,137) | |||||||||
| Net loans acquired in acquisition | 213,534 | 447,679 | |||||||||
| Net increase (decrease) in loan portfolio | $ | 1,762,161 | (895,605) | ||||||||
24
Deferred Directors Fee Plans
non-employee
member of the one-half
percent below the Wall Street Journal
Split Dollar Life Insurance Agreements
Mr. Albanese, Mr. Bone and Ms. Siekerka are each party to individual split dollar life insurance agreements with Roma Bank, which were assumed by Investors Bank on December 6, 2013 in connection with the merger between Investors Bancorp and Roma Financial Corporation. Investors Bank owns a life insurance policy on the lives of our key operating objectives has been,Messrs. Albanese, Bone and continues to be, maintaining a high level of asset quality. We maintain sound credit standards for new loan originations and purchases. We do not originate sub-prime loans, negative amortization loans or option ARM loans. Our portfolio contains interest-only and no income verification residential mortgage loans. We have not originated residential mortgage loans without verifying income in recent years. At December 31, 2021, these loans totaled $81.3 million. At December 31, 2021, interest-only residential and consumer loans totaled $20.0 million, which represented less than 1%Ms. Siekerka. Under the agreement, upon the death of the residentialdirector, the proceeds of the policy are divided between the director’s beneficiary, who is entitled to $100,000 on the director’s death, and consumer portfolio. Although itInvestors Bank, which is notentitled to the remainder of the death benefit. The director has the right to designate the beneficiary who will receive his or her share of the proceeds payable upon death.
Mr. Stathoulopoulos is party to a standard product offering for commercial real estate and multi-family loans, we originate interest-onlysplit dollar life insurance agreement with Marathon National Bank of New York, which was assumed by Investors Bank on October 15, 2012 in addition to amortizing loans in these segments. At December 31, 2021, interest-only loans in these segments totaled $2.56 billion. As part of our underwriting, these loans are evaluated as fully amortizing for risk classification purposes,connection with the interest-only period generally ranging from one to ten years. In addition, we evaluate ourmerger between Investors Bancorp and Marathon Banking Corporation. Investors Bank owns a life insurance policy limits on a regular basis. We believe these criteria adequately control the potential riskslife of such loans and that adequate provisions for loan losses are provided for all known and inherent risks. AtMr. Stathoulopoulos. Under the request of commercial borrowers experiencing financial difficulty resulting fromagreement, upon the pandemic, we temporarily deferred the payment of principal and/or interest for an agreed-upon period of time. As of December 31, 2021, there were approximately $267 million of commercial loans not included in the amount of interest-only loans disclosed in this section.
25
| Segment and industry sector | Principal and Interest Deferral | Principal Deferral | Total | Deferred Loan % of Total Loans (1) | ||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||||||||
| Accommodation and food service | $ | — | 170 | 170 | 0.8 | % | ||||||||||||||||||||
| Arts, entertainment and recreation | — | 23 | 23 | 0.1 | % | |||||||||||||||||||||
| Real estate and rental | — | 1 | 1 | — | % | |||||||||||||||||||||
| Total deferred commercial and industrial | — | 194 | 194 | 0.9 | % | |||||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||
| Accommodation and food service | — | 61 | 61 | 0.3 | % | |||||||||||||||||||||
| Other | — | 4 | 4 | — | % | |||||||||||||||||||||
| Total deferred commercial real estate | — | 65 | 65 | 0.3 | % | |||||||||||||||||||||
| Construction | — | — | — | — | % | |||||||||||||||||||||
| Multi-family | — | 8 | 8 | — | % | |||||||||||||||||||||
| Total deferred commercial loans | — | 267 | 267 | 1.2 | % | |||||||||||||||||||||
| Residential and consumer | 12 | — | 12 | — | % | |||||||||||||||||||||
Total deferred loans (2) | $ | 12 | 267 | 279 | 1.2 | % | ||||||||||||||||||||
| (1) Percentage calculated using total loan balance as of December 31, 2021 | ||||||||||||||||||||||||||
| (2) All of the commercial deferments are scheduled to expire in the first quarter of 2022. | ||||||||||||||||||||||||||
Summary of Directors’ Compensation
| Loans Delinquent For | |||||||||||||||||||||||||||||||||||
| 60-89 Days | 90 Days and Over | Total | |||||||||||||||||||||||||||||||||
| Number | Amount | Number | Amount | Number | Amount | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| At December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Multi-family loans | 2 | $ | 3,013 | 11 | $ | 18,600 | 13 | $ | 21,613 | ||||||||||||||||||||||||||
| Commercial real estate loans | 2 | 1,751 | 7 | 2,806 | 9 | 4,557 | |||||||||||||||||||||||||||||
| Commercial and industrial loans | 2 | 133 | 8 | 2,175 | 10 | 2,308 | |||||||||||||||||||||||||||||
| Construction loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total commercial loans | 6 | 4,897 | 26 | 23,581 | 32 | 28,478 | |||||||||||||||||||||||||||||
| Residential mortgage loans | 15 | 2,624 | 107 | 25,521 | 122 | 28,145 | |||||||||||||||||||||||||||||
| Consumer and other loans | 6 | 201 | 21 | 822 | 27 | 1,023 | |||||||||||||||||||||||||||||
| Total | 27 | $ | 7,722 | 154 | $ | 49,924 | 181 | $ | 57,646 | ||||||||||||||||||||||||||
| At December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Multi-family loans | — | $ | — | 11 | $ | 32,884 | 11 | $ | 32,884 | ||||||||||||||||||||||||||
| Commercial real estate loans | 7 | 2,450 | 9 | 6,356 | 16 | 8,806 | |||||||||||||||||||||||||||||
| Commercial and industrial loans | 8 | 3,116 | 10 | 1,769 | 18 | 4,885 | |||||||||||||||||||||||||||||
| Construction loans | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total commercial loans | 15 | 5,566 | 30 | 41,009 | 45 | 46,575 | |||||||||||||||||||||||||||||
| Residential mortgage loans | 24 | 4,258 | 114 | 29,124 | 138 | 33,382 | |||||||||||||||||||||||||||||
| Consumer and other loans | 13 | 1,476 | 25 | 1,984 | 38 | 3,460 | |||||||||||||||||||||||||||||
| Total | 52 | $ | 11,300 | 169 | $ | 72,117 | 221 | $ | 83,417 | ||||||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Non-accrual loans: | |||||||||||||||||||||||||||||||||||||||||
| Multi-family loans | $ | 55,276 | $ | 35,567 | |||||||||||||||||||||||||||||||||||||
| Commercial real estate loans | 8,269 | 15,894 | |||||||||||||||||||||||||||||||||||||||
| Commercial and industrial loans | 3,329 | 9,212 | |||||||||||||||||||||||||||||||||||||||
| Construction loans | — | — | |||||||||||||||||||||||||||||||||||||||
| Total commercial loans | 66,874 | 60,673 | |||||||||||||||||||||||||||||||||||||||
| Residential mortgage loans | 37,170 | 43,958 | |||||||||||||||||||||||||||||||||||||||
| Consumer and other loans | 1,140 | 2,494 | |||||||||||||||||||||||||||||||||||||||
| Total non-accrual loans | 105,184 | 107,125 | |||||||||||||||||||||||||||||||||||||||
| Real estate owned and other repossessed assets | 2,882 | 7,115 | |||||||||||||||||||||||||||||||||||||||
| Performing troubled debt restructurings | 7,565 | 9,232 | |||||||||||||||||||||||||||||||||||||||
| Total non-performing assets | $ | 115,631 | $ | 123,472 | |||||||||||||||||||||||||||||||||||||
| Total non-accrual loans to total loans | 0.47 | % | 0.51 | % | |||||||||||||||||||||||||||||||||||||
| Total non-performing assets to total assets | 0.42 | % | 0.47 | % | |||||||||||||||||||||||||||||||||||||
non-employee
Name | Investors Bancorp Fees Earned or Paid in Cash ($) | Investors Bank Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | Option Awards ($) (2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) (3) | Total ($) | |||||||||||||||||||||
Robert C. Albanese | 74,000 | 73,200 | — | — | — | 654 | 147,854 | |||||||||||||||||||||
Dennis M. Bone | 96,500 | 73,200 | — | — | — | 495 | 170,195 | |||||||||||||||||||||
Doreen R. Byrnes | 66,500 | 73,200 | — | — | — | 17,905 | 157,605 | |||||||||||||||||||||
William V. Cosgrove | 56,500 | 73,200 | — | — | — | 30,129 | 159,829 | |||||||||||||||||||||
James J. Garibaldi | 34,000 | 73,200 | — | — | — | — | 107,200 | |||||||||||||||||||||
John E. Harmon, Sr. | 44,292 | 67,100 | — | — | — | — | 111,392 | |||||||||||||||||||||
Michele N. Siekerka | 66,500 | 73,200 | — | — | — | 172 | 139,872 | |||||||||||||||||||||
Paul N. Stathoulopoulos | 64,000 | 73,200 | — | — | — | 5,412 | 142,612 | |||||||||||||||||||||
Kim Wales | 48,667 | 67,100 | — | — | — | — | 115,767 | |||||||||||||||||||||
James H. Ward III | 74,000 | 73,200 | — | — | — | — | 147,200 | |||||||||||||||||||||
| (1) | Messrs. Albanese, Bone, Cosgrove, Garibaldi, Stathoulopoulos and Ward and Mses. Byrnes and Siekerka each had no unvested stock awards at December 31, 2021. |
| (2) | Messrs. Albanese, Bone, Cosgrove, Garibaldi, Stathoulopoulos and Ward and Mses. Byrnes and Siekerka each had no unexercised stock option awards at December 31, 2021. |
| (3) | This amount includes perquisites and other personal benefits, or property, if the aggregate amount for each director is at least $10,000. Specifically, this amount represents the premiums paid for long term care coverage for Ms. Byrnes and her spouse. In addition, the amount includes automobile allowance and club dues for Mr. Cosgrove. For Messrs. Albanese, Bone and Stathoulopoulos and Ms. Siekerka, this amount includes imputed income with respect to their split dollar life insurance agreements. |
Other Matters
Director Stock Ownership Requirements
The Board believes its directors should have a financial investment in Investors Bancorp to the classificationfurther align their interests with stockholders. Directors are expected to own at least 25,000 shares of our assets and the amount of our valuation allowances is subject to review by the NJDOBI and the FDIC, which can require that we establish additional loss allowances.
| Years Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Allowance for credit loss on loans | $ | 240,681 | 282,986 | 228,120 | |||||||||||||
| Nonaccrual loans | $ | 105,184 | 107,125 | 95,315 | |||||||||||||
| Total loans outstanding | $ | 22,598,047 | 20,872,755 | 21,703,269 | |||||||||||||
| Allowance for credit losses on loans as a percent of total loans outstanding | 1.07 | % | 1.36 | % | 1.05 | % | |||||||||||
| Nonaccrual loans to total loans outstanding | 0.47 | % | 0.51 | % | 0.44 | % | |||||||||||
| Allowance for credit losses on loans as a percent of nonaccrual loans | 228.82 | % | 264.17 | % | 239.66 | % | |||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
| Net charge-offs (recovery) | Average balance outstanding | Net loans charged off as a percent of average balance outstanding | Net charge-offs (recovery) | Average balance outstanding | Net loans charged off as a percent of average balance outstanding | Net charge-offs (recovery) | Average balance outstanding | Net loans charged off as a percent of average balance outstanding | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Multi-family loans | $ | 616 | $ | 7,439,917 | 0.01 | % | $ | 2,666 | $ | 7,442,028 | 0.04 | % | $ | 1,729 | $ | 8,081,658 | 0.02 | % | |||||||||||||||||
| Commercial real estate loans | (125) | 5,040,609 | — | 109 | 4,838,859 | — | (2,053) | 4,824,860 | (0.04) | ||||||||||||||||||||||||||
| Commercial & industrial loans | (386) | 3,751,881 | (0.01) | 7,546 | 3,282,290 | 0.23 | 5,630 | 2,557,374 | 0.22 | ||||||||||||||||||||||||||
| Construction loans | — | 462,165 | — | — | 304,619 | — | — | 255,894 | — | ||||||||||||||||||||||||||
| Residential mortgage loans | (929) | 3,967,173 | (0.02) | 513 | 4,753,163 | 0.01 | 793 | 5,395,645 | 0.01 | ||||||||||||||||||||||||||
| Consumer and other loans | 283 | 714,961 | 0.04 | (181) | 685,839 | (0.03) | 598 | 695,921 | 0.09 | ||||||||||||||||||||||||||
| Total | $ | (541) | $ | 21,376,706 | — | % | $ | 10,653 | $ | 21,306,798 | 0.05 | % | $ | 6,697 | $ | 21,811,352 | 0.03 | % | |||||||||||||||||
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | Allowance for Loan Losses | Percent of Loans in Each Category to Total Loans | |||||||||||
| (Dollars in thousands) | ||||||||||||||
| End of period allocated to: | ||||||||||||||
| Multi-family loans | $ | 39,346 | 34.8 | % | $ | 56,731 | 34.1 | % | ||||||
| Commercial real estate loans | 81,186 | 23.8 | 115,918 | 23.7 | ||||||||||
| Commercial and industrial loans | 85,113 | 18.2 | 79,327 | 17.1 | ||||||||||
| Construction loans | 11,539 | 2.4 | 7,267 | 2.0 | ||||||||||
| Residential mortgage loans | 19,654 | 17.4 | 19,941 | 19.7 | ||||||||||
| Consumer and other loans | 3,843 | 3.4 | 3,802 | 3.4 | ||||||||||
| Total allowance | $ | 240,681 | 100.0 | % | $ | 282,986 | 100.0 | % | ||||||
Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights (1) | Weighted Average Exercise Price (2) | Number of Securities Remaining Available for Issuance Under Plan | ||||||||||
Equity compensation plans approved by stockholders | 5,570,858 | $ | 12.46 | 17,529,907 | ||||||||
Equity compensation plans not approved by stockholders | — | — | — | |||||||||
Total | 5,570,858 | — | 17,529,907 | |||||||||
26
| (1) | Includes outstanding stock options to purchase 120,564 shares of common stock granted under the 2006 Equity Incentive Plan. |
| (2) | With respect to the stock options, the weighted average exercise price reflects an exercise price of $8.15 for 73,491 stock options granted in 2013; an exercise price of $10.28 for 47,073 stock options granted in 2014; an exercise price of $12.54 for 4,241,158 stock options granted in 2015; an exercise price of $11.83 for 110,560 stock options granted in 2016; an exercise price of $13.29 for 63,360 stock options granted in 2017; an exercise price of $12.99 for 40,000 stock options granted in 2018 and an exercise price of $12.53 for 995,216 stock options granted in 2019 under the Company’s stock-based compensation plans. |
| (3) | Represents the number of available shares that may be granted as stock options and other stock awards under the Company’s stock-based compensation plans. |
Compensation Discussion and Analysis
In this section, we describe the Company’s executive compensation program. Our intent is primarily comprisedto help stockholders understand the framework of senior officers. While general investment strategies are developed byour overall program, its objectives, and the Asset Liability Committee,rationale for the executionCompensation and Benefits Committee’s compensation decisions. This discussion is focused specifically on the compensation of specific actions rests primarily with our Treasurer. The Treasurerthe following executive officers, each of whom is responsible for ensuring the guidelines and requirements includednamed in the Investment Policy are followed and all securities are considered prudent for investment. Investment transactions are reviewed and ratified by the Board at their regularly scheduled meetings.
| At December 31, | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Equity securities | $ | 7,750 | 8,194 | 34,801 | 36,000 | ||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||
| Government sponsored enterprises | $ | 3,434 | 3,586 | 4,260 | 4,482 | ||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Federal National Mortgage Association | 1,022,851 | 1,034,336 | 1,167,057 | 1,205,426 | |||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 1,242,073 | 1,250,043 | 1,286,195 | 1,317,052 | |||||||||||||||||||
| Government National Mortgage Association | 105,289 | 105,575 | 225,810 | 231,477 | |||||||||||||||||||
| Total mortgage-backed securities available-for-sale | 2,370,213 | 2,389,954 | 2,679,062 | 2,753,955 | |||||||||||||||||||
| Total debt securities available-for-sale | $ | 2,373,647 | 2,393,540 | 2,683,322 | 2,758,437 | ||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||
| Government sponsored enterprises | $ | 133,128 | 132,056 | 109,016 | 112,414 | ||||||||||||||||||
| Municipal bonds | 214,298 | 226,944 | 246,601 | 261,591 | |||||||||||||||||||
| Corporate and other debt securities | 128,174 | 163,930 | 130,565 | 149,713 | |||||||||||||||||||
| Total debt securities | 475,600 | 522,930 | 486,182 | 523,718 | |||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Federal National Mortgage Association | 619,954 | 628,779 | 413,426 | 434,331 | |||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 478,654 | 477,743 | 308,219 | 317,686 | |||||||||||||||||||
| Government National Mortgage Association | 21,444 | 22,052 | 43,290 | 45,137 | |||||||||||||||||||
| Total mortgage-backed securities held-to-maturity | 1,120,052 | 1,128,574 | 764,935 | 797,154 | |||||||||||||||||||
| Total debt securities held-to-maturity | 1,595,652 | 1,651,504 | 1,251,117 | 1,320,872 | |||||||||||||||||||
| Allowance for credit losses | 1,867 | — | 3,264 | — | |||||||||||||||||||
| Total debt securities held-to-maturity, net of allowance for credit losses | $ | 1,593,785 | 1,651,504 | 1,247,853 | 1,320,872 | ||||||||||||||||||
| Total securities | $ | 3,975,182 | 4,053,238 | 3,965,976 | 4,115,309 | ||||||||||||||||||
| One Year or Less | More than One Year through Five Years | More than Five Years through Ten Years | More than Ten Years | Total Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Weighted Average Coupon | Carrying Value | Fair Value | Weighted Average Coupon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | — | — | % | $ | — | — | % | $ | 2,500 | 7.00 | % | $ | 5,250 | — | % | $ | 7,750 | $ | 8,194 | 2.26 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Available-for-Sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government sponsored enterprises | $ | — | — | % | $ | — | — | % | $ | 1,129 | 2.90 | % | $ | 2,305 | 2.79 | % | $ | 3,434 | $ | 3,586 | 2.83 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | — | — | 34,465 | 0.61 | 664,312 | 0.62 | 543,296 | 1.98 | 1,242,073 | 1,250,043 | 1.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal National Mortgage Association | — | — | 5,978 | 2.68 | 161,111 | 0.97 | 855,762 | 1.83 | 1,022,851 | 1,034,336 | 1.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government National Mortgage Association | — | — | 384 | 2.57 | 891 | 1.93 | 104,014 | 2.21 | 105,289 | 105,575 | 2.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total mortgage-backed securities | — | — | 40,827 | 0.93 | 826,314 | 0.69 | 1,503,072 | 1.91 | 2,370,213 | 2,389,954 | 1.47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total available-for-sale debt securities | $ | — | — | % | $ | 40,827 | 0.93 | % | $ | 827,443 | 0.69 | % | $ | 1,505,377 | 1.91 | % | $ | 2,373,647 | $ | 2,393,540 | 1.47 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Held-to-Maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government sponsored enterprises | $ | — | — | % | $ | — | — | % | $ | 74,056 | 1.32 | % | $ | 59,072 | 2.01 | % | $ | 133,128 | $ | 132,056 | 1.63 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Municipal bonds | 9,988 | 0.87 | 20,710 | 2.13 | 5,217 | 6.16 | 178,383 | 2.68 | 214,298 | 226,944 | 2.63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate and other debt securities | — | — | — | — | 77,525 | 4.23 | 50,649 | 1.57 | 128,174 | 163,930 | 3.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total debt securities | 9,988 | 0.87 | 20,710 | 2.13 | 156,798 | 2.92 | 288,104 | 2.35 | 475,600 | 522,930 | 2.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 14 | 5.49 | 498 | 2.10 | 134,419 | 2.65 | 343,723 | 1.52 | 478,654 | 477,743 | 1.84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Federal National Mortgage Association | — | — | 586 | 3.07 | 128,539 | 2.43 | 490,829 | 1.99 | 619,954 | 628,779 | 2.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Government National Mortgage Association | — | — | — | — | 3,076 | 2.42 | 18,368 | 2.69 | 21,444 | 22,052 | 2.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total mortgage-backed securities | 14 | 5.49 | 1,084 | 2.62 | 266,034 | 2.54 | 852,920 | 1.82 | 1,120,052 | 1,128,574 | 1.99 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total held-to-maturity debt securities | $ | 10,002 | 0.88 | % | $ | 21,794 | 2.15 | % | $ | 422,832 | 2.68 | % | $ | 1,141,024 | 1.95 | % | $ | 1,595,652 | $ | 1,651,504 | 2.14 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 1,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total held-to-maturity debt securities, net of allowance for credit losses | $ | 1,593,785 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Percent of Total Deposits | Weighted Average Rate | Balance | Percent of Total Deposits | Weighted Average Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Checking accounts | $ | 4,658,319 | 22.4 | % | — | % | $ | 3,663,073 | 18.8 | % | — | % | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Checking accounts | 7,270,634 | 34.9 | 0.36 | 6,043,393 | 30.9 | 0.49 | |||||||||||||||||||||||||||||||||||||||||||||||
| Money market deposits | 4,757,567 | 22.8 | 0.31 | 5,037,327 | 25.8 | 0.42 | |||||||||||||||||||||||||||||||||||||||||||||||
| Savings | 2,043,152 | 9.8 | 0.24 | 2,063,447 | 10.6 | 0.48 | |||||||||||||||||||||||||||||||||||||||||||||||
| Certificates of deposit | 2,094,966 | 10.1 | 0.43 | 2,718,179 | 13.9 | 0.97 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $ | 20,824,638 | 100.0 | % | 0.26 | % | $ | 19,525,419 | 100.0 | % | 0.45 | % | |||||||||||||||||||||||||||||||||||||||||
| Within Three Months | Over Three to Six Months | Over Six Months to one Year | Over One Year to Two Years | Over Two Years to Three Years | Over Three Years | Total | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Certificates of Deposit | |||||||||||||||||||||||||||||||||||||||||||||||
| 0.00% - 0.25% | $ | 202,323 | $ | 246,507 | $ | 416,553 | $ | 31,464 | $ | 55 | $ | 4 | $ | 896,906 | |||||||||||||||||||||||||||||||||
| 0.26% - 0.50% | 293,786 | 201,711 | 275,867 | 108,179 | 67,944 | 27,728 | 975,215 | ||||||||||||||||||||||||||||||||||||||||
| 0.51% - 1.00% | 12,611 | 7,617 | 8,521 | 11,875 | 13,466 | 7,223 | 61,313 | ||||||||||||||||||||||||||||||||||||||||
| 1.01% - 2.00% | 59,052 | 35,433 | 6,369 | 16,289 | 3,686 | 1,404 | 122,233 | ||||||||||||||||||||||||||||||||||||||||
| 2.01% - 3.00% | 6,467 | 11,821 | 1,816 | 10,009 | 6,674 | 27 | 36,814 | ||||||||||||||||||||||||||||||||||||||||
| Over 3.00% | 1,018 | 527 | 87 | 470 | 383 | — | 2,485 | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 575,257 | 503,616 | 709,213 | 178,286 | 92,208 | 36,386 | 2,094,966 | |||||||||||||||||||||||||||||||||||||||
Name | Title | ||||
| Kevin Cummings | Chairman and Chief Executive Officer | ||||
| President and Chief Operating Officer | |||||
| Senior Executive Vice President and Chief Lending Officer | |||||
| Executive Vice President and Chief Financial Officer | |||||
| Senior Executive Vice President and Chief Risk Officer | |||||
| At or for the Year Ended December 31, | ||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Balance at end of period | $ | 3,071,419 | $ | 2,662,574 | ||||||||||||||||||||||
| Average balance during period | 3,256,111 | 4,213,353 | ||||||||||||||||||||||||
| Maximum outstanding at any month end | 3,684,099 | 5,057,338 | ||||||||||||||||||||||||
| Weighted average interest rate at end of period | 1.98 | % | 2.08 | % | ||||||||||||||||||||||
| Average interest rate during period | 2.15 | % | 2.13 | % | ||||||||||||||||||||||
2021 Compensation Highlights
| At or for the Year Ended December 31, | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Balance at end of period | $ | 449,117 | $ | 448,514 | |||||||||||||||||||
| Average balance during period | 448,792 | 451,741 | |||||||||||||||||||||
| Maximum outstanding at any month end | 449,117 | 547,961 | |||||||||||||||||||||
| Weighted average interest rate at end of period | 1.97 | % | 1.97 | % | |||||||||||||||||||
| Average interest rate during period | 2.14 | % | 2.17 | % | |||||||||||||||||||
There were no outstanding balances under these lines. In April 2020,base salary increases in 2021 for our CEO or COO, but the Company assumed $13.5 million of subordinated notesbase salary for Messrs. Spengler and Burke were increased to $480,000 and $475,000, respectively, in the acquisition of Gold Coast.2021.
The Board receives reports on the management of critical risks and the effectiveness of risk management systems. While our full Board maintains the ultimate oversight responsibility for the risk management process, its committees, including Audit, Risk Oversight and Compensation and Benefits committees, oversee riskCommittee advised our stockholders it might exercise discretion for 2020 incentive compensation in certain specified areas.light of theRisk Oversight Committee ofdecided not to use discretion for the Board meets quarterlyCEO and provides independent oversight of all risk functions. Our Board has assigned responsibility to our Chief Risk Officer for maintaining the Enterprise Risk Management (“ERM”) framework to identify, assess, monitorCOO and mitigate risks in the execution of our strategictherefore their incentive goals, targets and objectives and ensure we operate in a safe and sound manner in accordance with the Board approved policies.measurements remained unchanged.
COVID-19
pandemic. The As of December 31, 2021 (1) | ||||||||||||||||||||||||||||||||||||||
| Actual | Minimum Capital Requirement with Conservation Buffer | To be Well Capitalized under Prompt Corrective Action Provisions (2) | ||||||||||||||||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
| Bank: | ||||||||||||||||||||||||||||||||||||||
| Tier 1 Leverage Ratio | $ | 2,494,982 | 8.99 | % | $ | 1,109,641 | 4.00 | % | $ | 1,387,051 | 5.00 | % | ||||||||||||||||||||||||||
| Common Equity Tier 1 Risk-Based Capital | 2,494,982 | 11.31 | % | 1,544,162 | 7.00 | % | 1,433,864 | 6.50 | % | |||||||||||||||||||||||||||||
| Tier 1 Risk-Based Capital | 2,494,982 | 11.31 | % | 1,875,053 | 8.50 | % | 1,764,756 | 8.00 | % | |||||||||||||||||||||||||||||
| Total Risk-Based Capital | 2,739,106 | 12.42 | % | 2,316,242 | 10.50 | % | 2,205,945 | 10.00 | % | |||||||||||||||||||||||||||||
| Investors Bancorp, Inc.: | ||||||||||||||||||||||||||||||||||||||
| Tier 1 Leverage Ratio | $ | 2,834,720 | 10.20 | % | $ | 1,111,822 | 4.00 | % | n/a | n/a | ||||||||||||||||||||||||||||
| Common Equity Tier 1 Risk-Based Capital | 2,834,720 | 12.82 | % | 1,547,928 | 7.00 | % | n/a | n/a | ||||||||||||||||||||||||||||||
| Tier 1 Risk-Based Capital | 2,834,720 | 12.82 | % | 1,879,627 | 8.50 | % | n/a | n/a | ||||||||||||||||||||||||||||||
| Total Risk-Based Capital | 3,092,372 | 13.98 | % | 2,321,892 | 10.50 | % | n/a | n/a | ||||||||||||||||||||||||||||||
For all employees, including our NEOs, the Company had to New York State and taxedachieve net income at a ratelevel equal to or greater than 75% of 7.25%. Thethe net income target amount of revenues that are sourced to New York State can be expected to fluctuate over time. In addition, the Company and its affiliates are subject to the Metropolitan Transportation Authority (“MTA”) Surcharge allocable to business activities carried on in the Metropolitan Commuter Transportation District. The MTA surcharge for 2021 was 30.0% of a recomputed New York State franchise tax, calculated using a 7.25% tax rate on allocated and apportioned entire net income. The Company and its affiliates are currently under audit with respect to their New York State combined franchise tax return for tax years 2016 through 2018.
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The Company’s net income exceeded 75% of the net income target amount for 2021 which enabled the CEO’s and COO’s incentive compensation to be measured on a balanced scorecard for the following Company financial components:
Earnings per share
Return on average assets
Loan quality
Based on the achievement of the corporate financial targets for the CEO and COO and corporate financial targets and individual goals for the other risks described in this Annual Report on Form 10-K, may adversely affectNEOs, the annual cash incentive awards were paid, between 105% and 175% of base salary, to our business, financial condition and operating results. In addition to the risks set forth below and the other risks described in this annual report, there may also be additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial that could materially and adversely affect our business, financial condition or operating results. As a result, past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods. Further, to the extent that any of the information contained in this Annual Report on Form 10-K constitutes forward-looking statements, the risk factors set forth below also are cautionary statements identifying important factors that could cause our actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of us.NEOs.
What We Do | What We Don’t Do | ||||
✓ We design our incentive compensation arrangements to appropriately balance risk and financial results in a manner that does not pose undue risk to the Company. ✓ We utilize an independent compensation consultant to annually evaluate NEO cash and stock compensation based on the pay levels of comparable executives in fifteen-to-twenty ✓ We pay incentive compensation based on measurable and verifiable corporate performance objectives. ✓ We consider multi-year financial performance when awarding long-term stock compensation. ✓ We conservatively vest stock compensation (generally five years). ✓ We require each of our NEOs to own Company common stock valued at a minimum of three-to-five ✓ We maintain a clawback policy for bonus and other incentive compensation paid to executive officers, which mitigates risk-taking behavior. ✓ We will place greater weight on performance when granting future equity awards. | ✗ We don’t modify annual incentive compensation performance objectives during the year in which those objectives apply. ✗ We don’t require the base salaries and total cash compensation of our NEOs to attain any particular percentile position versus the compensation of executives in our peer comparator companies. ✗ We don’t allow directors and executive officers to engage in or effect transactions designed to hedge or offset economic risk of owning shares of our stock. ✗ We don’t allow directors and executive officers to hold company stock in a margin account or pledge securities as collateral. ✗ We don’t enter into new change of control agreements with single triggers. ✗ We have only limited perquisites. ✗ We don’t enter into new employment contracts with tax gross up provisions. |
What Guides Our Program
Executive Compensation Philosophy
Investors Bancorp’s executive compensation program is designed to offer competitive cash and equity compensation and benefits that will attract, motivate and retain highly qualified and talented executives who will help maximize Investors Bancorp’s financial performance and earnings growth. In designing the compensation program for Investors Bancorp, the Compensation and Benefits Committee takes into consideration methods to avoid encouraging the taking of excessive risk by executive management or by other employees. Investors Bancorp’s executive compensation program is also intended to align the interests of its executive officers with stockholders by rewarding performance against established corporate financial targets, and by motivating strong executive leadership and superior individual performance. In this regard: (1) a substantial portion of the compensation payable to our NEOs
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is linked to financial and individual performance and is dependent on quantifiable achievement of goals; (2) the interests of our NEOs are aligned with the long-term interests of our stockholders through their stock-based and
non-equity
incentive compensation, which are earned primarily based on the satisfaction of corporate performance metrics; (3) our focus is providing compensation that is commensurate with the achievement of short-term and long-term financial goals and individual performance; and (4) our executive compensation program is designed to be competitive to attract, retain and motivate our NEOs.The Compensation and Benefits Committee regularly evaluates the level of annual incentive compensation, including the annual incentive compensation opportunity available to each of our NEOs based on the Company’s growth and financial performance, as well as peer competitive compensation practices, and overall marketplace conditions.
For 2021, our CEO’s cash compensation was 36% fixed and 64% variable. For our other NEOs, cash compensation for 2021 averaged 47% fixed and 53% variable.
Investors Bancorp’s executive compensation program allocates portions of total compensation between long-term and short-term compensation and between cash and
non-cash
compensation by including competitive base salaries, an annual cash incentive plan, stock options and performance and time-based stock awards, supplemental executive retirement benefits and limited executive perquisites, which encourage long-term employment with Investors Bancorp.The compensation paid to each NEO is based on the executive officer’s level of job responsibility, corporate financial performance measured against corporate financial targets, and an assessment of individual performance. A significant portion of each NEO’s total compensation is performance-based as each executive is in a leadership role that can significantly impact corporate performance.
2021Vote Results
Say-on-Pay
At our 2021 annual meeting of shareholders, approximately 92% of the votes cast on theproposal were in favor of approving the resolution supporting executive compensation. The Compensation and Benefits Committee considers the results of this advisory resolution when evaluating and establishing our executive compensation programs. The Compensation and Benefits Committee believes that these voting results reflect strong confidence in our Board to exercise good judgment in structuring a thoughtful executive compensation program that benefits our shareholders. The Compensation and Benefits Committee intends to continuously improve our executive compensation arrangements and programs to meet evolving business conditions, address retention concerns and ensure consistent alignment with shareholder interests.
Say-on-Pay
The Decision-Making Process
Role of the Compensation and Benefits Committee
The Compensation and Benefits Committee oversees the executive compensation program for our NEOs. The Committee is comprised of.
non-employee
directors determined by the Board to be independent as defined in the Nasdaq corporate governance listing rules and SEC Rule10C-1. The
Compensation and Benefits Committee’s Charter is posted on the “Governance Documents” section of the “Investor Relations” page of Investors Bank’s website at www.investorsbank.com
29
As noted in the Compensation and Benefits Committee Charter, the purpose of the Committee is to assist the Board in carrying out the Board’s overall responsibility relating to executive compensation, incentive compensation and equity and
non-equity-based
benefit plans. The Compensation and Benefits Committee makes all final compensation and equity award decisions regarding our NEOs, except for the CEO, whose compensation is determined by the independent members of the full Board, based upon recommendations of the Committee.Role of Executive Officers
The Compensation and Benefits Committee is responsible for designing and approving our executive compensation program. When appropriate, the CEO and COO will provide the Committee with the information it needs to make well-informed and appropriate decisions. The CEO and COO participate in Committee meetings purely in an informational and advisory capacity and have no votes in the Committee’s decision-making process. The CEO and COO do not attend portions of Committee meetings during which their performance is being evaluated or their compensation is being determined. The Compensation and Benefits Committee uses executive session to determine appropriate actions to be taken.
The Compensation and Benefits Committee will meet with the CEO and COO before establishing the incentive compensation performance metrics, including their respective weightings, and to review the progress towards the achievement of the
pre-established
corporate financial targets and individual performance goals related to our cash and equity incentive plans. Also, the Committee requires the CEO and COO to provide the Committee with performance assessments and compensation recommendations for each of the other NEOs, which are considered by the Compensation and Benefits Committee in arriving at its compensation determinations.Role of Compensation Consultant
For 2021, the Compensation and Benefits Committee engaged Pearl Meyer as an independent compensation consultant to assist in its evaluation of Investors Bancorp’s executive compensation program and provide an annual competitive evaluation of the total compensation of the NEOs. Pearl Meyer reports directly to the Compensation and Benefits Committee and does not perform any other services to Investors Bancorp or Investors Bank. Pearl Meyer provided the Compensation and Benefits Committee with executive compensation benchmarking trends and external developments, and also provided input on Investors Bancorp and Investors Bank’s overall compensation program and monitored their short-term and long-term incentive plans for best practices and market competitiveness.
Before engaging a compensation consultant, the Compensation and Benefits Committee considers the independence of the compensation consultant, taking into account the following factors: (1) other services provided to Investors Bancorp by the compensation consultant; (2) fees paid by Investors Bancorp as a percentage of the compensation consultant’s total revenue; (3) policies or procedures maintained by the compensation consultant that are designed to prevent a conflict of interest; (4) any business or personal relationship of the compensation consultant or the individual compensation advisors employed by the firm with any member of
30
the Compensation and Benefits Committee; (5) any Investors Bancorp common stock owned by the compensation consultant or the individual compensation advisors employed by the firm; and (6) any business or personal relationship of the compensation consultant or the individual compensation advisors employed by the firm with any executive officer of Investors Bancorp. In this regard, prior to an engagement, the Compensation and Benefits Committee requests and receives a report from a compensation consultant regarding its independence. After evaluation of the forgoing factors and review of the report provided by Pearl Meyer, the Compensation and Benefits Committee concluded that Pearl Meyer was independent and had no conflicts of interest with respect to its engagement.
Market Comparison
For 2021, Pearl Meyer compared Investors Bancorp’s executive compensation program to peer group compensation data. Pearl Meyer provided the Compensation and Benefits Committee with relevant competitive cash and stock compensation information obtained from public disclosures of a selected peer group of 19 banking institutions to be used for evaluating 2021 compensation. These included banking institutions with assets of $21.2 billion to $60.3 billion at June 30, 2020, having an asset mix similar to Investors Bancorp and doing business primarily in the Northeast and Central regions of the United States. The average net interest income reported for the peers at the time of evaluation was $1.2 billion using the year ended December 31, 2019.
Our peer comparator companies are reviewed by the Compensation and Benefits Committee for suitability and may be modified frombased on several factors, including significant changes and developments in the size, scope, business mix and financial condition of Investors Bancorp and each of the potential peer comparators. In addition, the Compensation and Benefits Committee considers the impact of completed mergers and acquisitions activity in our geographic region and relevant areas of competitive banking operations, as well as other publicly-announced business combinations within the broader banking industry. The Compensation and Benefits Committee also considers pertinent competitive industry knowledge and information provided by its compensation advisors and senior management.
year-to-year
2021 Peer Group
The group of companies approved by the Compensation and Benefits Committee for the evaluation of 2021 NEO compensation consisted of the 17 peer banking institutions identified below:
BankUnited—FL | Signature Bank—NY | ||||
Commerce Bancshares, Inc.—MO | Sterling Bancorp—NY | ||||
First Horizon National Corporation —TN | UMB Financial Corporation—MO | ||||
Flagstar Bancorp—MI | Umpqua Holdings Corporation—OR | ||||
F.N.B Corporation—PA | Valley National Bancorp—NJ | ||||
Fulton Financial Corporation— PA | Webster Financial Corporation—CT | ||||
New York Community Bancorp, Inc.—NY | Western Alliance Bancorporation—AZ | ||||
Old National Bancorp—IN | Wintrust Financial Corporation—IL | ||||
Prosperity Bancshares, Inc.—TX |
31 2021,
While our executive compensation program is designed such that each NEO’s base salary, annual cash incentives and long-term equity compensation are commensurate with corporate and personal performance, Investors Bancorp has no formal policy that requires the Companycompensation of the NEOs to attain any specific percentile position within our peer group. However, the Compensation and Benefits Committee carefully reviewed detailed comparative information provided by its compensation consultant regarding the cash and stock compensation of each NEO, which included (i) a detailed comparative study of the cash and stock compensation of the NEOs of the selected peer companies on a functionally position-matched basis and (ii) statistical median and average value of the detailed array of comparative executive compensation data for each element of NEO compensation. This comparative compensation study also includes specific information regarding the cash and stock compensation provided to the
non-employee
Directors of each of the peer comparator companies.Elements of Executive Compensation for 2021
The Compensation and Benefits Committee used a total compensation approach in establishing our elements of executive compensation, which consist of base salary, annual cash incentive awards, long-term incentive awards (such as stock option and restricted stock awards), a competitive benefits package and limited perquisites.
Base Salary
Base salary is the primary fixed component of our executive compensation package for our NEOs. Base salary levels for the NEOs are evaluated by the Compensation and Benefits Committee on an annual basis. In general, base salaries are reviewed considering the experience and market value of each NEO based on the competitive executive salary information furnished to the Compensation and Benefits Committee by its compensation consultant. Specifically, each NEO’s base salary level is determined by his sustained individual performance, leadership, operational effectiveness, tenure in office, experience in the industry and the Bank conducted business from their corporate headquartersemployment market conditions in Short Hills, New Jersey, with operation centers located in Iselin, Robbinsville, Dunellenour geographical area. For 2021, there were no base salary increases for our CEO or COO. For 2021 there was an increase to base salary for our Chief Financial Officer and Millburn, New JerseyChief Lending Officer.
The Compensation and Benefits Committee considered Investors Bancorp’s financial performance, and peer group and market-based industry salary data provided by the Committee’s compensation consultant for 2021, as well as lending offices within our primary market areas in Short Hills, Iselin, Robbinsville, Mount Laurel, Spring Lake, Newark and Jackson, New Jersey, the New York City boroughs of Manhattan, Queens and Brooklyn, and Islandia, New York, as well as a full-service branch network of 154 offices located throughout New Jersey, New York and Pennsylvania. We also have lending offices in Danbury, Connecticut and Charlotte, North Carolina.
| Index | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | |||||||||||||||||||||||||||||
| Investors Bancorp, Inc. | 100.00 | 101.94 | 78.66 | 93.54 | 87.23 | 130.17 | |||||||||||||||||||||||||||||
| S&P 500 Bank | 100.00 | 122.55 | 102.41 | 144.02 | 124.21 | 168.24 | |||||||||||||||||||||||||||||
| S&P 500 Regional Banks | 100.00 | 117.43 | 96.08 | 130.11 | 124.21 | 174.55 | |||||||||||||||||||||||||||||
The following table reports information regarding repurchases ofsets forth the salary earned by our common stock duringNEOs for the quartercalendar years ended December 31, 2021 and the stock repurchase plans approved by our Board.2020:
Executive Officer | 2021 Salary ($) | 2020 Salary ($) | ||||||
Kevin Cummings | 1,075,000 | 1,075,000 | ||||||
Domenick A. Cama | 725,000 | 725,000 | ||||||
Richard S. Spengler | 480,000 | 465,000 | ||||||
Sean Burke | 475,000 | 450,000 | ||||||
Paul Kalamaras | 450,000 | 450,000 | ||||||
| Period | Total Number of Shares Purchased (1)(2) | Average Price paid Per Share | As part of Publicly Announced Plans or Programs | Yet to be Purchased Under the Plans or Programs | ||||||||||||||||||||||
| October 1, 2021 through October 31, 2021 | 2,754 | $ | 15.35 | — | 12,000,202 | |||||||||||||||||||||
| November 1, 2021 through November 30, 2021 | 1,576 | $ | 15.61 | — | 12,000,202 | |||||||||||||||||||||
| December 1, 2021 through December 31, 2021 | 273 | $ | 14.28 | — | 12,000,202 | |||||||||||||||||||||
| Total | 4,603 | — | ||||||||||||||||||||||||
Executive Officer Annual Incentive Plan
Each of the third repurchase plan on December 10, 2018. This program has no expiration date and has 12,000,202 shares yet to be repurchased as of December 31, 2021.
32
In many cases, these individual goals include personal accountability on the part of one or more NEO for critical performance with respect to standard banking industry and other public company metrics (e.g., deposit growth, efficiency ratio, loan delinquency and other such goals). Our transformation can be attributedIn our view, individual goals have served to strengthen the effectiveness of our executive compensation program and continue to have a numbersignificant positive impact on our managerial performance. We believe that this incentive plan structure allows our NEOs to effectively plan, organize, supervise, monitor and evaluate the key functional areas and departments for which they are responsible, and through which our most important corporate objectives are achieved.
The corporate financial targets and individual goals are established by the Compensation and Benefits Committee no later than 90 days after the commencement of factors, including organic growth, de novo branch openings, bankthe period of service to which the performance goal relates, but in no event after 25% of the performance period has elapsed, and branch acquisitions, as wellin either case, so long as the expansionoutcome is substantially uncertain at the time that the goal is established. Such targets and goals are weighted in relation to the NEO’s position and duties. As corporate financial targets and/or individual performance goals exceed or fall short of our offered loanachievement levels (which are established at Threshold, Target and deposit products. We believeMaximum Achievements), the attractive markets we operate in, namely, New Jersey andactual amount paid under the greater New York metropolitan area,plan will continue to provide us with growth opportunities. In addition, we have national exposure through our Investors eAccess online deposit platform and our equipment finance, healthcare and leveraged lending portfolios. Our primary focus is to build and develop profitable customer relationships across all lines of business, both consumer and commercial.
2021 the entire country was negatively impacted by the COVID-19 pandemic. Beginning in March 2020, the impacts of the COVID-19 pandemic, including social distancing guidelines, closure of non-essential businesses and shelter-at-home mandates, caused a global economic downturn. The economic downturn included an increase in unemployment and a decline in gross domestic product. Since April 2020, the unemployment rate has declined but remains elevated above the pre-pandemic unemployment rate. Gross domestic product has grown each quarter beginning with the third quarter of 2020 after declining in the first and second quarters of 2020. Supply chain issues, labor participation and other factors have contributed to an elevated inflationary environment.Financial Performance – Incentive Achievement
Total assets increased $1.78 billion, or 6.9%, to $27.81 billion at December 31, 2021 from $26.02 billion at December 31, 2020. Net loans increased $1.76 billion, or 8.6%, to $22.34 billion at December 31, 2021 from $20.58 billion at December 31, 2020. Securities decreased $46.8 million, or 1.2%, to $4.00 billion at December 31, 2021 from $4.04 billion at December 31, 2020. Duringfor the year ended December 31, 2021, we originated or funded $2.43driven primarily by an increase of $1.76 billion in multi-family loans, $1.27 billion in residential loans, $1.26 billion in commercial and industrial loans, $1.24 billion in commercial real estate loans, $170.6 million in construction loans and $118.2 million in consumer and othernet loans. Our ongoing strategy is to continue to enhance our commercial banking capabilities and maintain a well-diversified loan portfolio. We have shifted focus to C&I originations while maintaining our commercial real estate and multi-family portfolio and continue to be diligent in our underwriting and credit risk monitoring of these portfolios. The overall level of
non-performing
loans remains low compared to our national and regional peers.Capital management iscontinues to be a key component of our business strategy. We continue to manage our capital through a combination of organic growth, stock repurchases, cash dividends and acquisitions. Effective capital management and prudent growth allows us to effectively leverage ourthe capital from the Company’s public offerings, while being mindful of tangible book value for stockholders. Our capital to total assets ratio has increased to 10.57% at December 31, 2021 from 10.41% at December 31, 2020. Since March 2015, we have repurchased 130.5 million shares at an average cost
33
For the year ended December 31, 2021, byour total shareholder return was 15.22% which was favorable when compared with our median peer total shareholder return of 4.96%. During 2021, the Company paid cash dividends to stockholders of $0.56 per share totaling $138.6 million and repurchased $12.1 million of stock as part of our capital management strategy to manage capital through organic growth, stock repurchases, cash dividends and acquisitions.
34
The tables below highlight the repurchaseCompany’s 2021 performance as compared to either (i) the Company’s 2020 performance or (ii) the median 2021 performance of 975,469 sharesthe Company’s peer group. The 2021 peer group is defined above in the “Market Comparison” section of common stock for $12.1 million.this Amendment No. 1 to the Annual Report on Form
10-K.
ISBC 2020 | ISBC 2021 | |||||||
Net Income (in millions) | $ | 221.6 | $ | 313.3 | ||||
EPS | $ | 0.94 | $ | 1.33 | ||||
ISBC 2021 | Peers 2021 | |||||||
ROAA – Return on Average Assets | 1.17 | % | 1.16 | % | ||||
Credit Quality – Non Performing Assets/ Assets | 0.42 | % | 0.43 | % | ||||
Capital Levels – Common Equity Tier 1 Ratio | 12.82 | % | 11.58 | % | ||||
Total Shareholder Return – Year Ended December 31, 2021 | 15.22 | % | 4.96 | % | ||||
2021 Incentive Opportunity
The Compensation and Benefits Committee regularly evaluates the level of annual incentive compensation, including the annual incentive compensation opportunity available to each of our branch network, we offer online banking capabilities for consumersNEOs based on the Company’s growth and financial performance, as well as small businesses, including providing robust online treasury capabilities to our customers. We complement our branch network with Investors eAccess, a secure online channel to attract deposits nationwide. Mobilepeer competitive compensation practices, and online banking services allow us to serve our customers’ needs and adapt to a changing environment. We continue to enhance our digital capabilities as a way to enhance the customer experience and deliver our services in a safe and secure manner. We will continue to execute our business strategies with a focus on prudent and opportunistic growth while striving to produce financial results that will create value for our stockholders. We intendoverall marketplace conditions. The Company’s objective is to continue to growprovide annual incentive opportunities that are commensurate with our business by successfully attracting deposits, identifying favorable loanannual financial and investment opportunities, acquiring other banks and non-bank entities, enhancing our market presence and product offeringsoperational results, as well as continuingeach NEO’s personal contribution to invest in our people.those results.
For 2021, the Compensation and Benefits Committee established the following range of annual cash incentive award opportunities for Threshold, Target and Maximum Achievements as a percentage of base salary:
Executive Officer | Threshold (1) | Target (1) | Maximum (1) | |||||||||
Kevin Cummings | 87.5 | % | 131.3 | % | 175.0 | % | ||||||
Domenick A. Cama | 70.0 | % | 105.0 | % | 140.0 | % | ||||||
Richard S. Spengler | 52.5 | % | 78.8 | % | 105.0 | % | ||||||
Sean Burke | 52.5 | % | 78.8 | % | 105.0 | % | ||||||
Paul Kalamaras | 52.5 | % | 78.8 | % | 105.0 | % | ||||||
| (1) | Assumed 50%, 75% and 100% achievement of all individual goals at Threshold, Target and Maximum, respectively. |
35
For 2021, the Compensation and Benefits Committee weighted each NEO’s annual cash incentive award opportunity (as a percentage of the total award opportunity) with respect to the corporate financial target and individual goals as follows:
| Executive Officer | Corporate Financial Targets | Individual Goals | ||||||
| Kevin Cummings | 100 | % | 0 | % | ||||
| Domenick A. Cama | 100 | % | 0 | % | ||||
| Richard S. Spengler | 40 | % | 60 | % | ||||
| Sean Burke | 60 | % | 40 | % | ||||
| Paul Kalamaras | 30 | % | 70 | % | ||||
Corporate Financial Targets
The Compensation and estimates because they require managementBenefits Committee established the following Threshold, Target and Maximum achievement levels for the corporate financial targets:
| Metric | Threshold 50% Payout | Target 75% Payout | Maximum 100% Payout | |||||||||
Net income (in millions) | $ | 225 | $ | 245 | $ | 265 | ||||||
| Earnings per share | $ | 0.97 | $ | 1.05 | $ | 1.14 | ||||||
| Return on average assets | 0.82 | % | 0.89 | % | 0.97 | % | ||||||
| Loan quality | 10.00 | % | 7.00 | % | 5.00 | % | ||||||
The net income goals at threshold, target and maximum were higher than the corresponding net income goals for 2020. Both the Target and Maximum goals were set to exercise significant judgment or discretion or to make significant assumptions that have, or could have, a material impactexceed the 2020 net income achievement.
For 2021, the Compensation and Benefits Committee weighted the CEO and COO corporate financial targets as earnings per share (50%), return on average assets (30%) and loan quality (20%). For all other NEO’s corporate financial targets were weighted earnings per share (50%) and return on average assets (50%).
Individual Goals
The individual goals established by the carrying valueCompensation and Benefits Committee were aligned with each NEO’s area of certain assets or on income.
Mr. Spengler’s individual goals included loan characteristics, the current credit quality of the portfolio as well as an economic outlook over the life of the loan.
36
Mr. Kalamaras’ individual goals included implementation of effective information security controls associated with the net amount expectedmigration of on premises data centers to be collected for TruPS, the Company employs a single scenario forecast methodology informed by historical industry default data as well as current and near term operating conditions for the banks and other financial institutions that are the underlying issuers.
Mr. Burke’s individual goals were related to predict, the anticipated amount of estimated credit losses on loans,enhancing profitability and therefore the appropriateness ofregulatory reporting, refining the allowance for credit loss could change significantly. It is difficult to estimate how potential changes in any one economic factor or input might affectpresentation, and the overall allowance because a wide varietyevaluation of factors and inputs are considered in estimatingtax strategies.
2021 Incentive Achievement
For 2021, the allowance and changes in those factors and inputs considered may not occur at the same rate and may not be consistent across the entire loan portfolio. Additionally, changes in factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others.
non-recurring,
as | At December 31, | |||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Selected Financial Condition Data: | |||||||||||||||||||||||||||||
| Total assets | $ | 27,806,618 | $ | 26,023,159 | $ | 26,698,766 | $ | 26,229,008 | $ | 25,129,244 | |||||||||||||||||||
| Loans receivable, net | 22,342,612 | 20,580,451 | 21,476,056 | 21,378,136 | 19,852,101 | ||||||||||||||||||||||||
| Loans held-for-sale | 809 | 30,357 | 29,797 | 4,074 | 5,185 | ||||||||||||||||||||||||
| Equity securities | 8,194 | 36,000 | 6,039 | 5,793 | 5,701 | ||||||||||||||||||||||||
| Debt securities held-to-maturity, net | 1,593,785 | 1,247,853 | 1,148,815 | 1,555,137 | 1,796,621 | ||||||||||||||||||||||||
| Debt securities available-for-sale, at estimated fair value | 2,393,540 | 2,758,437 | 2,695,390 | 2,122,162 | 1,982,026 | ||||||||||||||||||||||||
| Bank owned life insurance | 229,358 | 223,714 | 218,517 | 211,914 | 155,635 | ||||||||||||||||||||||||
| Deposits | 20,824,638 | 19,525,419 | 17,860,338 | 17,580,269 | 17,357,697 | ||||||||||||||||||||||||
| Borrowed funds | 3,535,038 | 3,295,790 | 5,827,111 | 5,435,681 | 4,461,533 | ||||||||||||||||||||||||
| Goodwill | 116,228 | 94,535 | 82,546 | 82,546 | 77,571 | ||||||||||||||||||||||||
| Stockholders’ equity | 2,938,428 | 2,710,003 | 2,621,950 | 3,005,330 | 3,125,451 | ||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Selected Operating Data: | |||||||||||||||||||||||||||||||||||
| Interest and dividend income | $ | 918,638 | $ | 980,894 | $ | 1,040,219 | $ | 968,416 | $ | 881,683 | |||||||||||||||||||||||||
| Interest expense | 147,623 | 255,208 | 385,146 | 288,399 | 201,907 | ||||||||||||||||||||||||||||||
| Net interest income | 771,015 | 725,686 | 655,073 | 680,017 | 679,776 | ||||||||||||||||||||||||||||||
| Provision for credit losses | (48,676) | 70,158 | (1,000) | 12,000 | 16,250 | ||||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 819,691 | 655,528 | 656,073 | 668,017 | 663,526 | ||||||||||||||||||||||||||||||
| Non-interest income | 64,463 | 90,518 | 53,413 | 10,081 | 35,637 | ||||||||||||||||||||||||||||||
| Non-interest expenses | 455,741 | 449,505 | 422,754 | 407,680 | 418,574 | ||||||||||||||||||||||||||||||
| Income before income tax expense | 428,413 | 296,541 | 286,732 | 270,418 | 280,589 | ||||||||||||||||||||||||||||||
| Income tax expense | 115,080 | 74,961 | 91,248 | 67,842 | 153,845 | ||||||||||||||||||||||||||||||
| Net income | $ | 313,333 | $ | 221,580 | $ | 195,484 | $ | 202,576 | $ | 126,744 | |||||||||||||||||||||||||
| Earnings per share — basic | $ | 1.33 | $ | 0.94 | $ | 0.75 | $ | 0.72 | $ | 0.44 | |||||||||||||||||||||||||
| Earnings per share — diluted | $ | 1.33 | $ | 0.94 | $ | 0.74 | $ | 0.72 | $ | 0.43 | |||||||||||||||||||||||||
| At or for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||
| Selected Financial Ratios and Other Data: | ||||||||||||||||||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||||||||||||||
| Return on assets (ratio of net income to average total assets) | 1.17 | % | 0.82 | % | 0.73 | % | 0.80 | % | 0.52 | % | ||||||||||||||||||||||
| Return on equity (ratio of net income to average equity) | 11.13 | % | 8.35 | % | 6.64 | % | 6.57 | % | 4.00 | % | ||||||||||||||||||||||
Net interest rate spread (1) | 2.81 | % | 2.56 | % | 2.19 | % | 2.46 | % | 2.67 | % | ||||||||||||||||||||||
Net interest margin (2) | 3.00 | % | 2.80 | % | 2.54 | % | 2.76 | % | 2.89 | % | ||||||||||||||||||||||
Efficiency ratio (3) | 54.55 | % | 55.07 | % | 59.67 | % | 59.08 | % | 58.51 | % | ||||||||||||||||||||||
| Non-interest expenses to average total assets | 1.70 | % | 1.66 | % | 1.58 | % | 1.61 | % | 1.73 | % | ||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 1.33x | 1.25x | 1.23x | 1.25x | 1.26x | |||||||||||||||||||||||||||
Dividend payout ratio (4) | 42.11 | % | 51.06 | % | 58.67 | % | 52.78 | % | 75.00 | % | ||||||||||||||||||||||
| Cash dividends paid | $ | 0.56 | $ | 0.48 | $ | 0.44 | $ | 0.38 | $ | 0.33 | ||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||||||
| Non-performing assets to total assets | 0.42 | % | 0.47 | % | 0.46 | % | 0.56 | % | 0.61 | % | ||||||||||||||||||||||
| Non-accrual loans to total loans | 0.47 | % | 0.51 | % | 0.44 | % | 0.58 | % | 0.68 | % | ||||||||||||||||||||||
Allowance for loan losses to non-performing loans (5) | 213.47 | % | 243.21 | % | 210.70 | % | 170.22 | % | 157.46 | % | ||||||||||||||||||||||
| Allowance for loan losses to total loans | 1.07 | % | 1.36 | % | 1.05 | % | 1.09 | % | 1.15 | % | ||||||||||||||||||||||
| Capital Ratios: | ||||||||||||||||||||||||||||||||
Tier 1 leverage ratio (6) | 8.99 | % | 9.08 | % | 8.22 | % | 10.28 | % | 11.00 | % | ||||||||||||||||||||||
Common equity tier 1 risk-based (6) | 11.31 | % | 11.72 | % | 11.03 | % | 13.41 | % | 13.94 | % | ||||||||||||||||||||||
Tier 1 risk-based capital (6) | 11.31 | % | 11.72 | % | 11.03 | % | 13.41 | % | 13.94 | % | ||||||||||||||||||||||
Total-risk-based capital (6) | 12.42 | % | 12.97 | % | 12.18 | % | 14.60 | % | 15.13 | % | ||||||||||||||||||||||
| Equity to total assets | 10.57 | % | 10.41 | % | 9.82 | % | 11.46 | % | 12.44 | % | ||||||||||||||||||||||
Tangible equity to tangible assets (7) | 10.14 | % | 10.03 | % | 9.49 | % | 11.12 | % | 12.10 | % | ||||||||||||||||||||||
| Average equity to average assets | 10.50 | % | 9.82 | % | 11.00 | % | 12.15 | % | 13.06 | % | ||||||||||||||||||||||
| Other Data: | ||||||||||||||||||||||||||||||||
Book value per common share (7) | $ | 12.36 | $ | 11.43 | $ | 11.11 | $ | 10.95 | $ | 10.64 | ||||||||||||||||||||||
Tangible book value per common share (7) | $ | 11.81 | $ | 10.97 | $ | 10.69 | $ | 10.59 | $ | 10.31 | ||||||||||||||||||||||
| Number of full service offices | 154 | 156 | 147 | 151 | 156 | |||||||||||||||||||||||||||
| Full time equivalent employees | 1,643 | 1,806 | 1,761 | 1,928 | 1,931 | |||||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Commercial Loans: | |||||||||||
| Multi-family loans | $ | 7,865,592 | $ | 7,122,840 | |||||||
| Commercial real estate loans | 5,371,758 | 4,947,212 | |||||||||
| Commercial and industrial loans | 4,113,792 | 3,575,641 | |||||||||
| Construction loans | 550,950 | 404,367 | |||||||||
| Total commercial loans | 17,902,092 | 16,050,060 | |||||||||
| Residential mortgage loans | 3,929,170 | 4,119,894 | |||||||||
| Consumer and other | 766,785 | 702,801 | |||||||||
| Total Loans | 22,598,047 | 20,872,755 | |||||||||
| Deferred fees, premiums and other, net | (14,754) | (9,318) | |||||||||
| Allowance for loan losses | (240,681) | (282,986) | |||||||||
| Net loans | $ | 22,342,612 | $ | 20,580,451 | |||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
| # of Loans | Amount | # of Loans | Amount | # of Loans | Amount | # of Loans | Amount | # of Loans | Amount | |||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Multi-family | 13 | $ | 55.3 | 15 | $ | 19.9 | 11 | $ | 16.6 | 13 | $ | 19.2 | 15 | $ | 35.6 | |||||||||||||||||||||||||||||
| Commercial real estate | 19 | 8.3 | 22 | 9.8 | 24 | 13.0 | 25 | 14.0 | 29 | 15.9 | ||||||||||||||||||||||||||||||||||
| Commercial and industrial | 15 | 3.3 | 16 | 3.3 | 13 | 5.2 | 15 | 4.4 | 21 | 9.2 | ||||||||||||||||||||||||||||||||||
| Construction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Total commercial loans | 47 | 66.9 | 53 | 33.0 | 48 | 34.8 | 53 | 37.6 | 65 | 60.7 | ||||||||||||||||||||||||||||||||||
| Residential and consumer | 216 | 38.3 | 231 | 43.5 | 232 | 42.8 | 239 | 45.7 | 246 | 46.4 | ||||||||||||||||||||||||||||||||||
| Total non-accrual loans | 263 | $ | 105.2 | 284 | $ | 76.5 | 280 | $ | 77.6 | 292 | $ | 83.3 | 311 | $ | 107.1 | |||||||||||||||||||||||||||||
| Accruing troubled debt restructured loans | 44 | $ | 7.6 | 47 | $ | 8.1 | 49 | $ | 9.3 | 45 | $ | 9.1 | 47 | $ | 9.2 | |||||||||||||||||||||||||||||
| Non-accrual loans to total loans | 0.47 | % | 0.35 | % | 0.36 | % | 0.40 | % | 0.51 | % | ||||||||||||||||||||||||||||||||||
| Allowance for loan losses as a percent of non-accrual loans | 228.82 | % | 344.61 | % | 348.05 | % | 340.60 | % | 264.17 | % | ||||||||||||||||||||||||||||||||||
| Allowance for loan losses as a percent of total loans | 1.07 | % | 1.20 | % | 1.26 | % | 1.36 | % | 1.36 | % | ||||||||||||||||||||||||||||||||||
($ in millions) | Net Income | EPS | ||||||
Reported | $ | 313.3 | $ | 1.33 | ||||
Cost of early extinguishment of wholesale funding | 10.2 | 0.04 | ||||||
Branch rationalization costs | 6.6 | 0.03 | ||||||
Acquisition-related expenses | 11.5 | 0.04 | ||||||
Shareholder matter | 0.3 | 0.00 | ||||||
Tax impact | (7.7 | ) | (0.03 | ) | ||||
Adjusted | $ | 334.2 | $ | 1.41 | ||||
| For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Outstanding Balance | Interest Earned/ Paid | Average Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 587,691 | $ | 648 | 0.11 | % | $ | 773,177 | $ | 1,460 | 0.19 | % | 215,447 | $ | 2,805 | 1.30 | % | |||||||||||||||||||||||||||||||||||||||
| Equity securities | 16,222 | 458 | 2.82 | 11,365 | 362 | 3.19 | 5,938 | 143 | 2.41 | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities available-for-sale | 2,543,274 | 40,636 | 1.60 | 2,672,537 | 58,873 | 2.20 | 2,395,047 | 67,822 | 2.83 | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities held-to-maturity, net | 1,254,917 | 32,179 | 2.56 | 1,184,984 | 34,049 | 2.87 | 1,317,322 | 40,017 | 3.04 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net loans | 21,099,992 | 836,171 | 3.96 | 21,040,964 | 871,411 | 4.14 | 21,576,829 | 912,091 | 4.23 | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock in FHLB | 183,001 | 8,546 | 4.67 | 229,120 | 14,739 | 6.43 | 274,661 | 17,341 | 6.31 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 25,685,097 | 918,638 | 3.58 | 25,912,147 | 980,894 | 3.79 | 25,785,244 | 1,040,219 | 4.03 | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest-earning assets | 1,133,861 | 1,096,400 | 975,585 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 26,818,958 | $ | 27,008,547 | $ | 26,760,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings deposits | $ | 2,032,004 | $ | 5,591 | 0.28 | % | $ | 2,039,686 | $ | 12,056 | 0.59 | % | $ | 1,985,142 | $ | 17,148 | 0.86 | % | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing checking | 6,581,074 | 27,488 | 0.42 | 5,869,801 | 42,014 | 0.72 | 5,020,991 | 84,698 | 1.69 | |||||||||||||||||||||||||||||||||||||||||||||||
| Money market accounts | 4,615,127 | 20,508 | 0.44 | 4,367,498 | 42,568 | 0.97 | 3,703,413 | 60,896 | 1.64 | |||||||||||||||||||||||||||||||||||||||||||||||
| Certificates of deposit | 2,359,645 | 14,318 | 0.61 | 3,819,029 | 58,951 | 1.54 | 4,609,274 | 99,115 | 2.15 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 15,587,850 | 67,905 | 0.44 | 16,096,014 | 155,589 | 0.97 | 15,318,820 | 261,857 | 1.71 | |||||||||||||||||||||||||||||||||||||||||||||||
| Borrowed funds | 3,704,903 | 79,718 | 2.15 | 4,665,094 | 99,619 | 2.14 | 5,611,206 | 123,289 | 2.20 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 19,292,753 | 147,623 | 0.77 | 20,761,108 | 255,208 | 1.23 | 20,930,026 | 385,146 | 1.84 | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest-bearing liabilities | 4,711,391 | 3,594,290 | 2,887,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 24,004,144 | 24,355,398 | 23,817,627 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders’ equity | 2,814,814 | 2,653,149 | 2,943,202 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 26,818,958 | $ | 27,008,547 | $ | 26,760,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 771,015 | $ | 725,686 | $ | 655,073 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread (1) | 2.81 | % | 2.56 | % | 2.19 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest-earning assets (2) | $ | 6,392,344 | $ | 5,151,039 | $ | 4,855,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (3) | 3.00 | % | 2.80 | % | 2.54 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.33 | 1.25 | 1.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Years Ended December 31, 2021 vs. 2020 | Years Ended December 31, 2020 vs. 2019 | |||||||||||||||||||||||||||||||||||||
| Increase (Decrease) Due to | Net Increase (Decrease) | Increase (Decrease) Due to | Net Increase (Decrease) | |||||||||||||||||||||||||||||||||||
| Volume | Rate | Volume | Rate | |||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
| Interest-earning cash accounts | $ | (348) | (464) | (812) | $ | 7,244 | (8,589) | (1,345) | ||||||||||||||||||||||||||||||
| Equities | 156 | (60) | 96 | 131 | 88 | 219 | ||||||||||||||||||||||||||||||||
| Debt securities available-for-sale | (2,886) | (15,351) | (18,237) | 7,753 | (16,702) | (8,949) | ||||||||||||||||||||||||||||||||
| Debt securities held-to-maturity, net | 3,722 | (5,592) | (1,870) | 3,548 | (9,516) | (5,968) | ||||||||||||||||||||||||||||||||
| Net loans | 11,729 | (46,969) | (35,240) | (11,876) | (28,804) | (40,680) | ||||||||||||||||||||||||||||||||
| Federal Home Loan Bank stock | (2,969) | (3,224) | (6,193) | (2,877) | 275 | (2,602) | ||||||||||||||||||||||||||||||||
| Total interest-earning assets | 9,404 | (71,660) | (62,256) | 3,923 | (63,248) | (59,325) | ||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
| Savings deposits | (46) | (6,419) | (6,465) | 465 | (5,557) | (5,092) | ||||||||||||||||||||||||||||||||
| Interest-bearing checking | 5,141 | (19,667) | (14,526) | 14,326 | (57,010) | (42,684) | ||||||||||||||||||||||||||||||||
| Money market accounts | 2,402 | (24,462) | (22,060) | 10,903 | (29,231) | (18,328) | ||||||||||||||||||||||||||||||||
| Certificates of deposit | (22,583) | (22,050) | (44,633) | (16,939) | (23,225) | (40,164) | ||||||||||||||||||||||||||||||||
| Total deposits | (15,086) | (72,598) | (87,684) | 8,755 | (115,023) | (106,268) | ||||||||||||||||||||||||||||||||
| Borrowed funds | (20,428) | 527 | (19,901) | (20,307) | (3,363) | (23,670) | ||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | (35,514) | (72,071) | (107,585) | (11,552) | (118,386) | (129,938) | ||||||||||||||||||||||||||||||||
| Increase (decrease) in net interest income | $ | 44,918 | 411 | 45,329 | $ | 15,475 | 55,138 | 70,613 | ||||||||||||||||||||||||||||||
EVE (1) | Net Interest Income (2) | ||||||||||||||||||||||||||||||||||||||||
| Change in Interest Rates (basis points) | Estimated EVE | Estimated Increase (Decrease) | Estimated Net Interest Income | Estimated Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
| + 200bp | $ | 4,590,198 | (262,005) | (5.4) | % | $ | 782,548 | (22,631) | (2.8) | % | |||||||||||||||||||||||||||||||
| 0bp | $ | 4,852,203 | — | — | $ | 805,179 | — | — | |||||||||||||||||||||||||||||||||
| -100bp | $ | 4,631,642 | (220,561) | (4.5) | % | $ | 801,225 | (3,954) | (0.5) | % | |||||||||||||||||||||||||||||||
EPS (adjusted) | ROAA (adjusted) | Loan Quality | ||||||||||
Achievement | 100 | % | 100 | % | 100 | % | ||||||
Executive Officer | EPS Weighting | ROAA Weighting | Loan Quality Weighting | |||||||||
Kevin Cummings | 50 | % | 30 | % | 20 | % | ||||||
Domenick A. Cama | 50 | % | 30 | % | 20 | % | ||||||
Richard S. Spengler | 50 | % | 50 | % | n/a | |||||||
Sean Burke | 50 | % | 50 | % | n/a | |||||||
Paul Kalamaras | 50 | % | 50 | % | n/a | |||||||
37
Based upon the foregoing and qualitative reserves. The quantitative methodologies consider a variety of factors such as historical loss experience, loan characteristics, the current credit quality of the portfolio as well as multiple weighted economic scenarios over a reasonable and supportable forecast period, after which, the Company reverts to average historical losses on a straight line basis. The expected credit losses are the product of multiplying the Company’s estimates of probability of default (PD), loss given default (LGD) and individual loan level exposure at default on an undiscounted basis. Expected credit losses are estimated over the contractual term of each loan, adjusted for expected prepayments. The collective ACL also includes qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative methodologies or the related economic assumptions.
pre-established
individual goals, the Compensation and Benefits Committee approved the following annual cash incentive awards on February 28, 2022:2021 Annual Cash Incentive Awards
Bonus Guidelines | Achievement | |||||||||||||||||||||||||||||||
Executive Officer | Eligible Earnings ($) | Maximum Bonus (%) | Corporate Goals | Individual Goals | Corporate Goals | Individual Goals | Cash Incentive ($) | Percent of Salary | ||||||||||||||||||||||||
Kevin Cummings | 1,075,000 | 175 | % | 100 | % | 0 | % | 100 | % | NA | 1,881,250 | 175 | % | |||||||||||||||||||
Domenick A. Cama | 725,000 | 140 | % | 100 | % | 0 | % | 100 | % | NA | 1,015,000 | 140 | % | |||||||||||||||||||
Richard S. Spengler | 480,000 | 105 | % | 40 | % | 60 | % | 100 | % | 100 | % | 504,000 | 105 | % | ||||||||||||||||||
Sean Burke | 475,000 | 105 | % | 60 | % | 40 | % | 100 | % | 100 | % | 498,750 | 105 | % | ||||||||||||||||||
Paul Kalamaras | 450,000 | 105 | % | 30 | % | 70 | % | 100 | % | 100 | % | 472,500 | 105 | % | ||||||||||||||||||
Equity Incentive Plan
At the annual meeting of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessmentstockholders held on June 9, 2015, stockholders of the collective ACL due to significant measurement uncertainty. Specifically,Company approved the assessment encompassed an evaluation of (1) the quantitative methodologies, including the methods and models used to estimate the PD and LGD, (2) the key assumptions for the quantitative methodologies, including the segmentation of the loan portfolio by similar risk characteristics, the reasonable and supportable forecast period including the reversion period, multiple economic scenarios including the weighting of those scenarios, and expected prepayments, and (3) the qualitative reserves. The assessment also included an evaluation of the conceptual soundness and performance of the PD and LGD models. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.
| December 31, 2021 | December 31, 2020 | ||||||||||
| (In thousands except share data) | |||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 287,990 | 170,432 | ||||||||
| Equity securities | 8,194 | 36,000 | |||||||||
| Debt securities available-for-sale, at estimated fair value | 2,393,540 | 2,758,437 | |||||||||
| Debt securities held-to-maturity, net (estimated fair value of $1,651,504 and $1,320,872 at December 31, 2021 and 2020, respectively) | 1,593,785 | 1,247,853 | |||||||||
| Loans receivable, net | 22,342,612 | 20,580,451 | |||||||||
| Loans held-for-sale | 809 | 30,357 | |||||||||
| Federal Home Loan Bank stock | 176,480 | 159,829 | |||||||||
| Accrued interest receivable | 78,636 | 79,705 | |||||||||
| Other real estate owned and other repossessed assets | 2,882 | 7,115 | |||||||||
| Office properties and equipment, net | 129,288 | 139,663 | |||||||||
| Operating lease right-of-use assets | 199,603 | 199,981 | |||||||||
| Net deferred tax asset | 87,251 | 116,805 | |||||||||
| Bank owned life insurance | 229,358 | 223,714 | |||||||||
| Goodwill and intangible assets | 131,993 | 109,633 | |||||||||
| Other assets | 144,197 | 163,184 | |||||||||
| Total assets | $ | 27,806,618 | 26,023,159 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Deposits | $ | 20,824,638 | 19,525,419 | ||||||||
| Borrowed funds | 3,535,038 | 3,295,790 | |||||||||
| Advance payments by borrowers for taxes and insurance | 137,438 | 115,729 | |||||||||
| Operating lease liabilities | 212,678 | 212,559 | |||||||||
| Other liabilities | 158,398 | 163,659 | |||||||||
| Total liabilities | 24,868,190 | 23,313,156 | |||||||||
| Commitments and contingencies | 0 | 0 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value, 100,000,000 authorized shares; none issued | — | — | |||||||||
| Common stock, $0.01 par value, 1,000,000,000 shares authorized; 361,869,872 issued at December 31, 2021 and 2020; 247,997,266 and 247,929,216 outstanding at December 31, 2021 and 2020, respectively | 3,619 | 3,619 | |||||||||
| Additional paid-in capital | 2,872,103 | 2,858,663 | |||||||||
| Retained earnings | 1,513,970 | 1,339,003 | |||||||||
| Treasury stock, at cost; 113,872,606 and 113,940,656 shares at December 31, 2021 and 2020, respectively | (1,375,126) | (1,375,996) | |||||||||
| Unallocated common stock held by the employee stock ownership plan | (69,845) | (75,270) | |||||||||
| Accumulated other comprehensive loss | (6,293) | (40,016) | |||||||||
| Total stockholders’ equity | 2,938,428 | 2,710,003 | |||||||||
| Total liabilities and stockholders’ equity | $ | 27,806,618 | 26,023,159 | ||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||
| Interest and dividend income: | |||||||||||||||||
| Loans receivable and loans held-for-sale | $ | 836,171 | 871,411 | 912,091 | |||||||||||||
| Securities: | |||||||||||||||||
| Equity | 458 | 362 | 143 | ||||||||||||||
| Government-sponsored enterprise obligations | 2,237 | 1,517 | 1,212 | ||||||||||||||
| Mortgage-backed securities | 56,539 | 77,925 | 95,133 | ||||||||||||||
| Municipal bonds and other debt | 14,039 | 13,480 | 11,494 | ||||||||||||||
| Interest-bearing deposits | 648 | 1,460 | 2,805 | ||||||||||||||
| Federal Home Loan Bank stock | 8,546 | 14,739 | 17,341 | ||||||||||||||
| Total interest and dividend income | 918,638 | 980,894 | 1,040,219 | ||||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 67,905 | 155,589 | 261,857 | ||||||||||||||
| Borrowed Funds | 79,718 | 99,619 | 123,289 | ||||||||||||||
| Total interest expense | 147,623 | 255,208 | 385,146 | ||||||||||||||
| Net interest income | 771,015 | 725,686 | 655,073 | ||||||||||||||
| Provision for credit losses | (48,676) | 70,158 | (1,000) | ||||||||||||||
| Net interest income after provision for credit losses | 819,691 | 655,528 | 656,073 | ||||||||||||||
| Non-interest income | |||||||||||||||||
| Fees and service charges | 22,080 | 17,916 | 23,604 | ||||||||||||||
| Income on bank owned life insurance | 6,548 | 6,638 | 6,542 | ||||||||||||||
| Gain on loans, net | 6,911 | 16,226 | 5,345 | ||||||||||||||
| Gain (loss) on securities, net | 506 | 406 | (5,536) | ||||||||||||||
| Gain on sale-leaseback transactions | — | 23,129 | — | ||||||||||||||
| Gain on sale of other real estate owned, net | 86 | 1,054 | 1,145 | ||||||||||||||
| Other income | 28,332 | 25,149 | 22,313 | ||||||||||||||
| Total non-interest income | 64,463 | 90,518 | 53,413 | ||||||||||||||
| Non-interest expense | |||||||||||||||||
| Compensation and fringe benefits | 245,065 | 240,970 | 243,782 | ||||||||||||||
| Advertising and promotional expense | 12,083 | 9,551 | 13,893 | ||||||||||||||
| Office occupancy and equipment expense | 76,788 | 77,754 | 63,996 | ||||||||||||||
| Federal deposit insurance premiums | 12,350 | 14,276 | 13,200 | ||||||||||||||
| General and administrative | 2,254 | 2,133 | 2,222 | ||||||||||||||
| Professional fees | 26,483 | 16,220 | 17,308 | ||||||||||||||
| Data processing and communication | 39,042 | 35,702 | 31,987 | ||||||||||||||
| Debt extinguishment | 10,159 | 24,098 | — | ||||||||||||||
| Other operating expenses | 31,517 | 28,801 | 36,366 | ||||||||||||||
| Total non-interest expenses | 455,741 | 449,505 | 422,754 | ||||||||||||||
| Income before income tax expense | 428,413 | 296,541 | 286,732 | ||||||||||||||
| Income tax expense | 115,080 | 74,961 | 91,248 | ||||||||||||||
| Net income | $ | 313,333 | 221,580 | 195,484 | |||||||||||||
| Basic earnings per share | $ | 1.33 | 0.94 | 0.75 | |||||||||||||
| Diluted earnings per share | $ | 1.33 | 0.94 | 0.74 | |||||||||||||
| Weighted average shares outstanding | |||||||||||||||||
| Basic | 235,315,487 | 235,761,457 | 262,202,598 | ||||||||||||||
| Diluted | 236,436,081 | 235,838,808 | 262,519,788 | ||||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Net income | $ | 313,333 | 221,580 | 195,484 | |||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Change in funded status of retirement obligations | 1,666 | (2,795) | (3,672) | ||||||||||||||
| Unrealized (losses) gains on debt securities available-for-sale | (41,756) | 27,748 | 34,119 | ||||||||||||||
| Accretion of loss on debt securities reclassified to held to maturity | 107 | 202 | 535 | ||||||||||||||
| Reclassification adjustment for security (gains) losses included in net income | (299) | — | 4,221 | ||||||||||||||
| Other-than-temporary impairment accretion on debt securities recorded prior to January 1, 2020 | 735 | 820 | 768 | ||||||||||||||
| Net gains (losses) on derivatives | 73,270 | (47,369) | (43,024) | ||||||||||||||
| Total other comprehensive income (loss) | 33,723 | (21,394) | (7,053) | ||||||||||||||
| Total comprehensive income | $ | 347,056 | 200,186 | 188,431 | |||||||||||||
| Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Unallocated Common Stock Held by ESOP | Accumulated other comprehensive loss | Total stockholders’ equity | |||||||||||||||||||||||||||||||||||
| (In thousands except share data) | |||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2018 | $ | 3,591 | 2,804,098 | 1,173,897 | (884,750) | (79,937) | (11,569) | 3,005,330 | |||||||||||||||||||||||||||||||||
| Net income | — | — | 195,484 | — | — | — | 195,484 | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | — | (7,053) | (7,053) | ||||||||||||||||||||||||||||||||||
| Purchase of treasury stock (39,365,145 shares) | — | — | — | (475,946) | — | — | (475,946) | ||||||||||||||||||||||||||||||||||
| Treasury stock allocated to restricted stock plan (2,360,919 shares) | — | (29,321) | 31 | 29,290 | — | — | — | ||||||||||||||||||||||||||||||||||
| Compensation cost for stock options and restricted stock | — | 19,968 | — | — | — | — | 19,968 | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | — | (573) | — | 1,387 | — | — | 814 | ||||||||||||||||||||||||||||||||||
| Restricted stock forfeitures (1,940,788 shares) | — | 24,347 | (1,456) | (22,891) | — | — | — | ||||||||||||||||||||||||||||||||||
| Cash dividend paid ($0.44 per common share) | — | — | (122,163) | — | — | — | (122,163) | ||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | — | 2,318 | — | — | 3,198 | — | 5,516 | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2019 | 3,591 | 2,820,837 | 1,245,793 | (1,352,910) | (76,739) | (18,622) | 2,621,950 | ||||||||||||||||||||||||||||||||||
Cumulative effect of adopting ASU No. 2016-13 | — | — | (8,491) | — | — | — | (8,491) | ||||||||||||||||||||||||||||||||||
| Balance at January 1, 2020 | 3,591 | 2,820,837 | 1,237,302 | (1,352,910) | (76,739) | (18,622) | 2,613,459 | ||||||||||||||||||||||||||||||||||
| Net income | — | — | 221,580 | — | — | — | 221,580 | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | — | (21,394) | (21,394) | ||||||||||||||||||||||||||||||||||
| Common stock issued to finance acquisition | 28 | 20,853 | — | — | — | — | 20,881 | ||||||||||||||||||||||||||||||||||
| Purchase of treasury stock (2,377,814 shares) | — | — | — | (23,920) | — | — | (23,920) | ||||||||||||||||||||||||||||||||||
| Treasury stock allocated to restricted stock plan (91,249 shares) | — | (913) | (200) | 1,113 | — | — | — | ||||||||||||||||||||||||||||||||||
| Compensation cost for stock options and restricted stock | — | 14,772 | — | — | — | — | 14,772 | ||||||||||||||||||||||||||||||||||
| Restricted stock forfeitures (23,141 shares) | — | 283 | (4) | (279) | — | — | — | ||||||||||||||||||||||||||||||||||
| Cash dividend paid ($0.48 per common share) | — | — | (119,675) | — | — | — | (119,675) | ||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | — | 1,103 | — | — | 3,197 | — | 4,300 | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2020 | 3,619 | 2,856,935 | 1,339,003 | (1,375,996) | (73,542) | (40,016) | 2,710,003 | ||||||||||||||||||||||||||||||||||
| Net income | — | — | 313,333 | — | — | — | 313,333 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | — | 33,723 | 33,723 | ||||||||||||||||||||||||||||||||||
| Purchase of treasury stock (975,469 shares) | — | — | — | (12,124) | — | — | (12,124) | ||||||||||||||||||||||||||||||||||
| Treasury stock allocated to restricted stock plan (262,281 shares) | — | (3,487) | 236 | 3,251 | — | — | — | ||||||||||||||||||||||||||||||||||
| Compensation cost for stock options and restricted stock | — | 14,314 | — | — | — | — | 14,314 | ||||||||||||||||||||||||||||||||||
| Exercise of stock options | — | (161) | — | 10,148 | — | — | 9,987 | ||||||||||||||||||||||||||||||||||
| Restricted stock forfeitures (33,351 shares) | — | 400 | 5 | (405) | — | — | — | ||||||||||||||||||||||||||||||||||
| Cash dividend paid ($0.56 per common share) | — | — | (138,607) | — | — | — | (138,607) | ||||||||||||||||||||||||||||||||||
| ESOP shares allocated or committed to be released | — | 4,102 | — | — | 3,697 | — | 7,799 | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | 3,619 | $ | 2,872,103 | $ | 1,513,970 | $ | (1,375,126) | $ | (69,845) | $ | (6,293) | 2,938,428 | ||||||||||||||||||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 313,333 | 221,580 | 195,484 | |||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| ESOP and stock-based compensation expense | 22,113 | 19,072 | 25,484 | ||||||||||||||
| Amortization of premiums and accretion of discounts on securities, net | 9,418 | 11,468 | 9,251 | ||||||||||||||
| Amortization of premiums and accretion of fees and costs on loans, net | (1,076) | 1,151 | (3,730) | ||||||||||||||
| Amortization of other intangible assets | 1,311 | 1,471 | 1,520 | ||||||||||||||
| Amortization of debt modification costs and premium on borrowings | 2,248 | 2,225 | 1,186 | ||||||||||||||
| Provision for credit losses | (48,676) | 70,158 | (1,000) | ||||||||||||||
| Loss from extinguishment of debt | 10,159 | 24,098 | — | ||||||||||||||
| Depreciation and amortization of office properties and equipment | 21,614 | 21,350 | 19,579 | ||||||||||||||
| (Gain) loss on securities, net | (506) | (406) | 5,536 | ||||||||||||||
| Mortgage loans originated for sale | (144,989) | (564,527) | (269,773) | ||||||||||||||
| Proceeds from mortgage loan sales | 179,427 | 579,788 | 247,640 | ||||||||||||||
| Gain on sales of mortgage loans, net | (4,891) | (15,822) | (3,590) | ||||||||||||||
| Gain on sale of other real estate owned | (86) | (1,054) | (1,145) | ||||||||||||||
| Gain on sale-leaseback transactions | — | (23,129) | — | ||||||||||||||
| Income on bank owned life insurance | (6,548) | (6,638) | (6,542) | ||||||||||||||
| Amortization of lease right-of-use assets | 25,893 | 21,551 | 17,608 | ||||||||||||||
| Decrease (increase) in accrued interest receivable | 2,077 | 891 | (1,812) | ||||||||||||||
| Deferred tax expense (benefit) | 14,379 | (34,190) | 45,624 | ||||||||||||||
| Decrease (increase) in other assets | 116,830 | (121,081) | (42,170) | ||||||||||||||
| (Decrease) increase in other liabilities | (17,250) | 16,341 | (78,496) | ||||||||||||||
| Net cash provided by operating activities | 494,780 | 224,297 | 160,654 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of loans receivable | (103,686) | (158,420) | (427,053) | ||||||||||||||
| Net (originations) payoffs of loans receivable | (1,481,130) | 1,055,802 | 101,227 | ||||||||||||||
| Proceeds from disposition of loans receivable | 88,412 | 380,671 | 227,522 | ||||||||||||||
| Gain on disposition of loans receivable | (2,020) | (404) | (1,755) | ||||||||||||||
| Gain on disposition of leased equipment | (3,380) | (2,086) | (5,698) | ||||||||||||||
| Net proceeds from sale of other real estate owned | 1,421 | 7,393 | 6,498 | ||||||||||||||
| Proceeds from sales of equity securities | 33,983 | — | — | ||||||||||||||
| Proceeds from principal repayments/calls/maturities of debt securities available for sale | 960,934 | 1,020,929 | 492,419 | ||||||||||||||
| Proceeds from sales of debt securities available for sale | 8,171 | — | 399,435 | ||||||||||||||
| Proceeds from principal repayments/calls/maturities of debt securities held to maturity | 302,881 | 278,532 | 251,574 | ||||||||||||||
| Purchases of equity securities | (6,068) | (29,705) | (96) | ||||||||||||||
| Purchases of debt securities available for sale | (666,822) | (1,005,649) | (1,034,131) | ||||||||||||||
| Purchases of debt securities held to maturity | (647,881) | (372,712) | (238,670) | ||||||||||||||
| Proceeds from redemptions of Federal Home Loan Bank stock | 89,575 | 182,182 | 303,245 | ||||||||||||||
| Purchases of Federal Home Loan Bank stock | (106,226) | (74,171) | (310,230) | ||||||||||||||
| Purchases of office properties and equipment | (10,875) | (17,755) | (11,761) | ||||||||||||||
| Proceeds from sale of real estate property | — | 49,970 | — | ||||||||||||||
| Death benefit proceeds from bank owned life insurance | 904 | 1,439 | — | ||||||||||||||
| Cash received, net of cash consideration paid for acquisitions | 391,640 | 7,274 | — | ||||||||||||||
| Net cash (used in) provided by investing activities | (1,150,167) | 1,323,290 | (247,474) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Net increase in deposits | 666,830 | 1,175,200 | 280,069 | ||||||||||||||
| Repayments of principal under finance leases | (1,588) | (1,579) | (2) | ||||||||||||||
| Funds borrowed under other repurchase agreements | — | — | 197,584 | ||||||||||||||
| Net proceeds (repayments) of borrowed funds | 837,000 | (1,548,397) | 192,660 | ||||||||||||||
| Payments related to extinguishment of debt | (610,159) | (1,024,098) | — | ||||||||||||||
| Net increase (decrease) in advance payments by borrowers for taxes and insurance | 21,606 | (9,601) | (8,172) | ||||||||||||||
| Dividends paid | (138,607) | (119,675) | (122,163) | ||||||||||||||
| Exercise of stock options | 9,987 | — | 814 | ||||||||||||||
| Purchase of treasury stock | (12,124) | (23,920) | (475,946) | ||||||||||||||
| Net cash provided by (used in) financing activities | 772,945 | (1,552,070) | 64,844 | ||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 117,558 | (4,483) | (21,976) | ||||||||||||||
| Cash and cash equivalents at beginning of period | 170,432 | 174,915 | 196,891 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 287,990 | 170,432 | 174,915 | |||||||||||||
| Supplemental cash flow information: | |||||||||||||||||
| Non-cash investing activities: | |||||||||||||||||
| Real estate acquired through foreclosure and other assets repossessed | $ | 344 | 1,050 | 12,567 | |||||||||||||
| Other repossessed assets transferred to active leases | 3,242 | $ | — | $ | — | ||||||||||||
| Cash paid during the year for: | |||||||||||||||||
| Interest | 150,612 | 268,284 | 390,359 | ||||||||||||||
| Income taxes | 110,025 | 88,450 | 36,146 | ||||||||||||||
| Significant non-cash transactions | |||||||||||||||||
| Debt securities transferred from held-to-maturity to available-for-sale | — | — | 393,359 | ||||||||||||||
| Loans transferred to held-for-sale portfolio | — | — | 28,373 | ||||||||||||||
| Investment in low income housing tax credit | 10,000 | — | 10,000 | ||||||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities | 16,372 | 43,062 | 2,996 | ||||||||||||||
| Acquisitions: | |||||||||||||||||
| Non-cash assets acquired: | |||||||||||||||||
| Debt securities available-for-sale | — | 51,524 | — | ||||||||||||||
| Debt securities held to maturity | — | 8,402 | — | ||||||||||||||
| Loans receivable, net | 212,538 | 443,499 | — | ||||||||||||||
| Office properties and equipment, net | 364 | 485 | — | ||||||||||||||
| Accrued interest receivable | 1,008 | 1,283 | — | ||||||||||||||
| Right of use assets - leases | 9,310 | 3,697 | — | ||||||||||||||
| Deferred tax asset | 1,212 | 3,915 | — | ||||||||||||||
| Intangible assets, net | 25,291 | 14,491 | — | ||||||||||||||
| Other assets | 509 | 705 | — | ||||||||||||||
| Total non-cash assets acquired | 250,232 | 528,001 | — | ||||||||||||||
| Liabilities assumed: | |||||||||||||||||
| Deposits | 632,389 | 489,881 | — | ||||||||||||||
| Borrowed funds | — | 14,851 | — | ||||||||||||||
| Advance payment by borrowers | 103 | 3,611 | — | ||||||||||||||
| Other liabilities | 9,380 | 6,051 | — | ||||||||||||||
| Total liabilities assumed | 641,872 | 514,394 | — | ||||||||||||||
| Net non-cash (liabilities) assets acquired | (391,640) | 13,607 | — | ||||||||||||||
| Common stock issued for acquisitions | — | 20,881 | — | ||||||||||||||
non-management
| For the Year Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Unrealized gains recognized on equity securities | $ | 356 | 256 | 150 | |||||||||||||
| Net losses recognized on equity securities sold | (248) | — | — | ||||||||||||||
| Net gains recognized on equity securities | $ | 108 | 256 | 150 | |||||||||||||
| At December 31, 2021 | |||||||||||||||||||||||
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||
| Government-sponsored enterprises | $ | 3,434 | 152 | — | 3,586 | ||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 1,242,073 | 13,979 | 6,009 | 1,250,043 | |||||||||||||||||||
| Federal National Mortgage Association | 1,022,851 | 18,076 | 6,591 | 1,034,336 | |||||||||||||||||||
| Government National Mortgage Association | 105,289 | 1,161 | 875 | 105,575 | |||||||||||||||||||
| Total mortgage-backed securities available-for-sale | 2,370,213 | 33,216 | 13,475 | 2,389,954 | |||||||||||||||||||
| Total debt securities available-for-sale | $ | 2,373,647 | 33,368 | 13,475 | 2,393,540 | ||||||||||||||||||
| At December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Amortized cost | Net unrealized losses (1) | Carrying value | Gross unrecognized gains (2) | Gross unrecognized losses (2) | Estimated fair value | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||
| Government-sponsored enterprises | $ | 133,128 | — | 133,128 | 2,254 | 3,326 | 132,056 | ||||||||||||||||||||||||||||
| Municipal bonds | 214,298 | — | 214,298 | 12,906 | 260 | 226,944 | |||||||||||||||||||||||||||||
| Corporate and other debt securities | 140,795 | 12,621 | 128,174 | 36,035 | 279 | 163,930 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 488,221 | 12,621 | 475,600 | 51,195 | 3,865 | 522,930 | |||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 478,684 | 30 | 478,654 | 4,158 | 5,069 | 477,743 | |||||||||||||||||||||||||||||
| Federal National Mortgage Association | 620,026 | 72 | 619,954 | 11,519 | 2,694 | 628,779 | |||||||||||||||||||||||||||||
| Government National Mortgage Association | 21,444 | — | 21,444 | 608 | — | 22,052 | |||||||||||||||||||||||||||||
| Total mortgage-backed securities held-to-maturity | 1,120,154 | 102 | 1,120,052 | 16,285 | 7,763 | 1,128,574 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | $ | 1,608,375 | 12,723 | 1,595,652 | 67,480 | 11,628 | 1,651,504 | ||||||||||||||||||||||||||||
| Allowance for credit losses | 1,867 | ||||||||||||||||||||||||||||||||||
| Total debt securities held-to-maturity, net of allowance for credit losses | 1,593,785 | ||||||||||||||||||||||||||||||||||
| At December 31, 2020 | |||||||||||||||||||||||
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||
| Government-sponsored enterprises | $ | 4,260 | 222 | — | 4,482 | ||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 1,286,195 | 30,930 | 73 | 1,317,052 | |||||||||||||||||||
| Federal National Mortgage Association | 1,167,057 | 38,568 | 199 | 1,205,426 | |||||||||||||||||||
| Government National Mortgage Association | 225,810 | 5,700 | 33 | 231,477 | |||||||||||||||||||
| Total mortgage-backed securities available-for-sale | 2,679,062 | 75,198 | 305 | 2,753,955 | |||||||||||||||||||
| Total debt securities available-for-sale | $ | 2,683,322 | 75,420 | 305 | 2,758,437 | ||||||||||||||||||
| At December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Amortized cost | Net unrealized losses (1) | Carrying value | Gross unrecognized gains (2) | Gross unrecognized losses (2) | Estimated fair value | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||
| Government-sponsored enterprises | $ | 109,016 | — | 109,016 | 4,107 | 709 | 112,414 | ||||||||||||||||||||||||||||
| Municipal bonds | 246,601 | — | 246,601 | 14,990 | — | 261,591 | |||||||||||||||||||||||||||||
| Corporate and other debt securities | 144,209 | 13,644 | 130,565 | 20,033 | 885 | 149,713 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 499,826 | 13,644 | 486,182 | 39,130 | 1,594 | 523,718 | |||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 308,285 | 66 | 308,219 | 9,733 | 266 | 317,686 | |||||||||||||||||||||||||||||
| Federal National Mortgage Association | 413,601 | 175 | 413,426 | 20,905 | — | 434,331 | |||||||||||||||||||||||||||||
| Government National Mortgage Association | 43,290 | — | 43,290 | 1,847 | — | 45,137 | |||||||||||||||||||||||||||||
| Total mortgage-backed securities held-to-maturity | 765,176 | 241 | 764,935 | 32,485 | 266 | 797,154 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | $ | 1,265,002 | 13,885 | 1,251,117 | 71,615 | 1,860 | 1,320,872 | ||||||||||||||||||||||||||||
| Allowance for credit losses | 3,264 | ||||||||||||||||||||||||||||||||||
| Total debt securities held-to-maturity, net of allowance for credit losses | 1,247,853 | ||||||||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | $ | 413,182 | 5,409 | 18,017 | 600 | 431,199 | 6,009 | ||||||||||||||||||||||||||||
| Federal National Mortgage Association | 315,762 | 5,721 | 119,547 | 870 | 435,309 | 6,591 | |||||||||||||||||||||||||||||
| Government National Mortgage Association | 20,713 | 477 | 7,714 | 398 | 28,427 | 875 | |||||||||||||||||||||||||||||
| Total debt securities available-for-sale | 749,657 | 11,607 | 145,278 | 1,868 | 894,935 | 13,475 | |||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||
| Government-sponsored enterprises | 62,529 | 2,074 | 26,068 | 1,252 | 88,597 | 3,326 | |||||||||||||||||||||||||||||
| Municipal bonds | 16,623 | 260 | — | — | 16,623 | 260 | |||||||||||||||||||||||||||||
| Corporate and other debt securities | 6,746 | 279 | — | — | 6,746 | 279 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 85,898 | 2,613 | 26,068 | 1,252 | 111,966 | 3,865 | |||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 286,238 | 4,327 | 11,287 | 742 | 297,525 | 5,069 | |||||||||||||||||||||||||||||
| Federal National Mortgage Association | 319,015 | 2,694 | — | — | 319,015 | 2,694 | |||||||||||||||||||||||||||||
| Total mortgage-backed securities held-to-maturity | 605,253 | 7,021 | 11,287 | 742 | 616,540 | 7,763 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 691,151 | 9,634 | 37,355 | 1,994 | 728,506 | 11,628 | |||||||||||||||||||||||||||||
| Total | $ | 1,440,808 | 21,241 | 182,633 | 3,862 | 1,623,441 | 25,103 | ||||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | Estimated fair value | Unrealized losses | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Available-for-sale: | |||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | $ | 60,502 | 73 | — | — | 60,502 | 73 | ||||||||||||||||||||||||||||
| Federal National Mortgage Association | 123,329 | 199 | — | — | 123,329 | 199 | |||||||||||||||||||||||||||||
| Government National Mortgage Association | 9,062 | 33 | — | — | 9,062 | 33 | |||||||||||||||||||||||||||||
| Total debt securities available-for-sale | 192,893 | 305 | — | — | 192,893 | 305 | |||||||||||||||||||||||||||||
| Held-to-maturity: | |||||||||||||||||||||||||||||||||||
| Debt securities: | |||||||||||||||||||||||||||||||||||
| Government-sponsored enterprises | 66,558 | 709 | — | — | 66,558 | 709 | |||||||||||||||||||||||||||||
| Corporate and other debt securities | 15,038 | 885 | — | — | 15,038 | 885 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 81,596 | 1,594 | — | — | 81,596 | 1,594 | |||||||||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
| Federal Home Loan Mortgage Corporation | 40,013 | 266 | — | — | 40,013 | 266 | |||||||||||||||||||||||||||||
| Total debt securities held-to-maturity | 121,609 | 1,860 | — | — | 121,609 | 1,860 | |||||||||||||||||||||||||||||
| Total | $ | 314,502 | 2,165 | — | — | 314,502 | 2,165 | ||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||
| Carrying value | Estimated fair value | ||||||||||
| (In thousands) | |||||||||||
| Due in one year or less | $ | 9,988 | 9,996 | ||||||||
| Due after one year through five years | 20,710 | 21,252 | |||||||||
| Due after five years through ten years | 156,798 | 159,392 | |||||||||
| Due after ten years | 288,104 | 332,290 | |||||||||
| Total | $ | 475,600 | 522,930 | ||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||
| (In thousands) | |||||||||||
| Multi-family loans | $ | 7,865,592 | 7,122,840 | ||||||||
| Commercial real estate loans | 5,371,758 | 4,947,212 | |||||||||
| Commercial and industrial loans | 4,113,792 | 3,575,641 | |||||||||
| Construction loans | 550,950 | 404,367 | |||||||||
| Total commercial loans | 17,902,092 | 16,050,060 | |||||||||
| Residential mortgage loans | 3,929,170 | 4,119,894 | |||||||||
| Consumer and other loans | 766,785 | 702,801 | |||||||||
| Total loans | 22,598,047 | 20,872,755 | |||||||||
| Deferred fees, premiums and accretable purchase accounting adjustments, net | (14,754) | (9,318) | |||||||||
| Allowance for credit losses | (240,681) | (282,986) | |||||||||
| Net loans | $ | 22,342,612 | 20,580,451 | ||||||||
| Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | $ | 2,409,672 | 951,908 | 458,618 | 879,180 | 512,459 | 1,552,631 | 6,594 | 6,771,062 | ||||||||||||||||||||||||||||||||||||||||||||
| Watch | 28,312 | 6,071 | 93,352 | 122,476 | 41,999 | 210,354 | 3,194 | 505,758 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | 2,174 | — | 10,220 | 9,739 | 103,059 | — | 125,192 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 27 | 5,026 | 24,052 | 21,210 | 412,768 | 497 | 463,580 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Multi-family | 2,437,984 | 960,180 | 556,996 | 1,035,928 | 585,407 | 2,278,812 | 10,285 | 7,865,592 | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 1,156,647 | 474,555 | 597,068 | 545,065 | 438,298 | 1,239,557 | 19,386 | 4,470,576 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 90,490 | 69,595 | 64,470 | 130,374 | 64,212 | 122,454 | 3,757 | 545,352 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | 375 | 2,169 | 6,947 | 2,772 | 129,211 | 2,096 | 143,570 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | — | 26,307 | 14,231 | 171,722 | — | 212,260 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial real estate | 1,247,137 | 544,525 | 663,707 | 708,693 | 519,513 | 1,662,944 | 25,239 | 5,371,758 | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 969,153 | 694,011 | 438,288 | 379,330 | 130,795 | 317,961 | 577,632 | 3,507,170 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 22,951 | 56,381 | 56,292 | 8,292 | 10,729 | 23,966 | 60,202 | 238,813 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | 15,104 | 135,591 | 47,263 | 10,372 | 65,438 | 1,465 | 275,233 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 3,719 | 4,945 | 4,717 | 49,191 | 25,398 | 4,606 | 92,576 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial and industrial | 992,104 | 769,215 | 635,116 | 439,602 | 201,087 | 432,763 | 643,905 | 4,113,792 | |||||||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 101,463 | 138,719 | 29,113 | — | — | — | 222,253 | 491,548 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 1,727 | — | 3,327 | — | — | — | — | 5,054 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | — | — | — | — | 30,973 | 30,973 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | — | 23,375 | — | — | — | 23,375 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Construction | 103,190 | 138,719 | 32,440 | 23,375 | — | — | 253,226 | 550,950 | |||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 1,256,451 | 494,796 | 257,048 | 241,621 | 303,567 | 1,313,943 | — | 3,867,426 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | — | — | 756 | 3,398 | 4,795 | 9,366 | — | 18,315 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | — | 155 | — | 1,579 | — | 1,734 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | 1,641 | 1,497 | 427 | 38,042 | 88 | 41,695 | |||||||||||||||||||||||||||||||||||||||||||||
| Total residential mortgage | 1,256,451 | 494,796 | 259,445 | 246,671 | 308,789 | 1,362,930 | 88 | 3,929,170 | |||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 9,508 | 5,402 | 3,932 | 4,383 | 9,333 | 41,860 | 686,852 | 761,270 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | — | — | — | — | 328 | 570 | 3,132 | 4,030 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | 36 | 7 | — | 146 | 12 | 201 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | — | — | 68 | 854 | 362 | 1,284 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer and other | 9,508 | 5,402 | 3,968 | 4,390 | 9,729 | 43,430 | 690,358 | 766,785 | |||||||||||||||||||||||||||||||||||||||||||||
| All classes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 5,902,894 | 2,759,391 | 1,784,067 | 2,049,579 | 1,394,452 | 4,465,952 | 1,512,717 | 19,869,052 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 143,480 | 132,047 | 218,197 | 264,540 | 122,063 | 366,710 | 70,285 | 1,317,322 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | 17,653 | 137,796 | 64,592 | 22,883 | 299,433 | 34,546 | 576,903 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 3,746 | 11,612 | 79,948 | 85,127 | 648,784 | 5,553 | 834,770 | |||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 6,046,374 | 2,912,837 | 2,151,672 | 2,458,659 | 1,624,525 | 5,780,879 | 1,623,101 | 22,598,047 | ||||||||||||||||||||||||||||||||||||||||||||
| Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Multi-family | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 1,002,259 | 515,446 | 912,910 | 601,440 | 850,781 | 1,199,133 | 6,986 | 5,088,955 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 21,366 | 153,404 | 374,363 | 135,348 | 299,413 | 220,668 | — | 1,204,562 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | 4,560 | — | 86,119 | 32,506 | 48,020 | 205,916 | — | 377,121 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 7,285 | 8,436 | 17,580 | 139,975 | 277,535 | 1,391 | 452,202 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Multi-family | 1,028,185 | 676,135 | 1,381,828 | 786,874 | 1,338,189 | 1,903,252 | 8,377 | 7,122,840 | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 529,244 | 684,807 | 646,708 | 461,097 | 495,822 | 1,081,512 | 32,509 | 3,931,699 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 87,137 | 132,932 | 117,598 | 74,379 | 61,794 | 165,702 | 3,428 | 642,970 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | 375 | 6,988 | 5,279 | 13,295 | 51,880 | 71,745 | 250 | 149,812 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | 8,212 | 40,024 | 29,488 | 144,758 | 249 | 222,731 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial real estate | 616,756 | 824,727 | 777,797 | 588,795 | 638,984 | 1,463,717 | 36,436 | 4,947,212 | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 1,007,949 | 619,275 | 328,917 | 156,596 | 176,557 | 348,278 | 203,302 | 2,840,874 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 49,208 | 115,888 | 43,791 | 48,230 | 28,708 | 34,697 | 31,931 | 352,453 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | 16,813 | 111,399 | 48,887 | 14,770 | 14,102 | 76,554 | 798 | 283,323 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 6,128 | 8,236 | 42,297 | 4,341 | 22,707 | 15,282 | 98,991 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial and industrial | 1,073,970 | 852,690 | 429,831 | 261,893 | 223,708 | 482,236 | 251,313 | 3,575,641 | |||||||||||||||||||||||||||||||||||||||||||||
| Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 85,915 | 58,041 | 23,375 | — | — | — | 197,437 | 364,768 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 6,891 | 5,350 | — | — | — | — | — | 12,241 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | 15,228 | — | — | — | — | 15,228 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | — | — | — | — | 12,130 | 12,130 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Construction | 92,806 | 63,391 | 38,603 | — | — | — | 209,567 | 404,367 | |||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 556,761 | 450,363 | 425,617 | 530,676 | 407,201 | 1,601,457 | — | 3,972,075 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 809 | 12,929 | 13,465 | 14,704 | 8,517 | 44,299 | — | 94,723 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | 584 | — | — | 3,402 | — | 3,986 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 1,523 | 1,972 | 1,336 | 246 | 43,936 | 97 | 49,110 | |||||||||||||||||||||||||||||||||||||||||||||
| Total residential mortgage | 557,570 | 464,815 | 441,638 | 546,716 | 415,964 | 1,693,094 | 97 | 4,119,894 | |||||||||||||||||||||||||||||||||||||||||||||
| Consumer and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 5,031 | 6,853 | 5,693 | 7,448 | 6,692 | 57,103 | 601,481 | 690,301 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | — | 39 | 137 | 56 | 156 | 440 | 7,655 | 8,483 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | — | — | — | — | — | 292 | 1,184 | 1,476 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | — | — | — | — | 1,796 | 745 | 2,541 | |||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer and other | 5,031 | 6,892 | 5,830 | 7,504 | 6,848 | 59,631 | 611,065 | 702,801 | |||||||||||||||||||||||||||||||||||||||||||||
| All classes | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass | 3,187,159 | 2,334,785 | 2,343,220 | 1,757,257 | 1,937,053 | 4,287,483 | 1,041,715 | 16,888,672 | |||||||||||||||||||||||||||||||||||||||||||||
| Watch | 165,411 | 420,542 | 549,354 | 272,717 | 398,588 | 465,806 | 43,014 | 2,315,432 | |||||||||||||||||||||||||||||||||||||||||||||
| Special mention | 21,748 | 118,387 | 156,097 | 60,571 | 114,002 | 357,909 | 2,232 | 830,946 | |||||||||||||||||||||||||||||||||||||||||||||
| Substandard | — | 14,936 | 26,856 | 101,237 | 174,050 | 490,732 | 29,894 | 837,705 | |||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 3,374,318 | 2,888,650 | 3,075,527 | 2,191,782 | 2,623,693 | 5,601,930 | 1,116,855 | 20,872,755 | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Multi-family | $ | 14,050 | 3,013 | 18,600 | 35,663 | 7,829,929 | 7,865,592 | ||||||||||||||||||||||||||||
| Commercial real estate | 15,579 | 1,751 | 2,806 | 20,136 | 5,351,622 | 5,371,758 | |||||||||||||||||||||||||||||
| Commercial and industrial | 21,304 | 133 | 2,175 | 23,612 | 4,090,180 | 4,113,792 | |||||||||||||||||||||||||||||
| Construction | — | — | — | — | 550,950 | 550,950 | |||||||||||||||||||||||||||||
| Total commercial loans | 50,933 | 4,897 | 23,581 | 79,411 | 17,822,681 | 17,902,092 | |||||||||||||||||||||||||||||
| Residential mortgage | 9,624 | 2,624 | 25,521 | 37,769 | 3,891,401 | 3,929,170 | |||||||||||||||||||||||||||||
| Consumer and other | 3,579 | 201 | 822 | 4,602 | 762,183 | 766,785 | |||||||||||||||||||||||||||||
| Total | $ | 64,136 | 7,722 | 49,924 | 121,782 | 22,476,265 | 22,598,047 | ||||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||
| 30-59 Days | 60-89 Days | Greater than 90 Days | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Multi-family | $ | 7,421 | — | 32,884 | 40,305 | 7,082,535 | 7,122,840 | ||||||||||||||||||||||||||||
| Commercial real estate | 12,805 | 2,450 | 6,356 | 21,611 | 4,925,601 | 4,947,212 | |||||||||||||||||||||||||||||
| Commercial and industrial | 986 | 3,116 | 1,769 | 5,871 | 3,569,770 | 3,575,641 | |||||||||||||||||||||||||||||
| Construction | — | — | — | — | 404,367 | 404,367 | |||||||||||||||||||||||||||||
| Total commercial loans | 21,212 | 5,566 | 41,009 | 67,787 | 15,982,273 | 16,050,060 | |||||||||||||||||||||||||||||
| Residential mortgage | 13,768 | 4,258 | 29,124 | 47,150 | 4,072,744 | 4,119,894 | |||||||||||||||||||||||||||||
| Consumer and other | 5,645 | 1,476 | 1,984 | 9,105 | 693,696 | 702,801 | |||||||||||||||||||||||||||||
| Total | $ | 40,625 | 11,300 | 72,117 | 124,042 | 20,748,713 | 20,872,755 | ||||||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| # of loans | Amount | # of loans | Amount | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Non-accrual: | |||||||||||||||||||||||
| Multi-family | 13 | $ | 55,276 | 15 | $ | 35,567 | |||||||||||||||||
| Commercial real estate | 19 | 8,269 | 29 | 15,894 | |||||||||||||||||||
| Commercial and industrial | 15 | 3,329 | 21 | 9,212 | |||||||||||||||||||
| Construction | — | — | — | — | |||||||||||||||||||
| Total commercial loans | 47 | 66,874 | 65 | 60,673 | |||||||||||||||||||
| Residential mortgage and consumer | 216 | 38,310 | 246 | 46,452 | |||||||||||||||||||
| Total non-accrual loans | 263 | $ | 105,184 | 311 | $ | 107,125 | |||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Real Estate | Other | Total | Real Estate | Other | Total | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Multi-family | $ | 49,568 | — | 49,568 | $ | 31,484 | — | 31,484 | |||||||||||||||||||||||||||
| Commercial real estate | 4,306 | — | 4,306 | 8,758 | — | 8,758 | |||||||||||||||||||||||||||||
| Commercial and industrial | 778 | — | 778 | 2,994 | 3,549 | 6,543 | |||||||||||||||||||||||||||||
| Construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total commercial loans | 54,652 | — | 54,652 | 43,236 | 3,549 | 46,785 | |||||||||||||||||||||||||||||
| Residential mortgage and consumer | 19,849 | 81 | 19,930 | 25,158 | 103 | 25,261 | |||||||||||||||||||||||||||||
| Total individually evaluated loans | $ | 74,501 | 81 | 74,582 | $ | 68,394 | 3,652 | 72,046 | |||||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| # of loans | Amount | # of loans | Amount | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| TDR with payment status current classified as non-accrual: | |||||||||||||||||||||||
| Commercial real estate | 1 | $ | 2,543 | 3 | $ | 3,907 | |||||||||||||||||
| Residential mortgage and consumer | 25 | 3,167 | 32 | 5,634 | |||||||||||||||||||
| Total TDR with payment status current classified as non-accrual | 26 | $ | 5,710 | 35 | $ | 9,541 | |||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| # of loans | Amount | # of loans | Amount | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| TDR 30-89 days delinquent classified as non-accrual: | |||||||||||||||||||||||
| Commercial real estate | — | $ | — | 1 | $ | 1,780 | |||||||||||||||||
| Residential mortgage and consumer | 10 | 2,814 | 10 | 942 | |||||||||||||||||||
| Total TDR 30-89 days delinquent classified as non-accrual | 10 | $ | 2,814 | 11 | $ | 2,722 | |||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||||||||||||||
| Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||
| # of loans | Amount | # of loans | Amount | # of loans | Amount | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Multi-family | — | $ | — | 1 | $ | 35,826 | 1 | $ | 35,826 | ||||||||||||||||||||||||||
| Commercial real estate | — | — | 3 | 4,306 | 3 | 4,306 | |||||||||||||||||||||||||||||
| Commercial and industrial | — | — | 1 | 778 | 1 | 778 | |||||||||||||||||||||||||||||
| Total commercial loans | — | — | 5 | 40,910 | 5 | 40,910 | |||||||||||||||||||||||||||||
| Residential mortgage and consumer | 44 | 7,565 | 69 | 12,174 | 113 | 19,739 | |||||||||||||||||||||||||||||
| Total | 44 | $ | 7,565 | 74 | $ | 53,084 | 118 | $ | 60,649 | ||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||
| # of loans | Amount | # of loans | Amount | # of loans | Amount | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Commercial loans: | |||||||||||||||||||||||||||||||||||
| Commercial real estate | — | $ | — | 4 | $ | 5,687 | 4 | $ | 5,687 | ||||||||||||||||||||||||||
| Commercial and industrial | 2 | 630 | 2 | 2,919 | 4 | 3,549 | |||||||||||||||||||||||||||||
| Total commercial loans | 2 | 630 | 6 | 8,606 | 8 | 9,236 | |||||||||||||||||||||||||||||
| Residential mortgage and consumer | 45 | 8,602 | 83 | 16,659 | 128 | 25,261 | |||||||||||||||||||||||||||||
| Total | 47 | $ | 9,232 | 89 | $ | 25,265 | 136 | $ | 34,497 | ||||||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| Number of Loans | Pre-modification Recorded Investment | Post- modification Recorded Investment | Number of Loans | Pre-modification Recorded Investment | Post- modification Recorded Investment | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||||
| Multi-family | 1 | $ | 37,671 | $ | 35,826 | — | $ | — | $ | — | |||||||||||||||||||||||||
| Commercial real estate | 1 | 170 | 170 | 4 | 5,707 | 5,707 | |||||||||||||||||||||||||||||
| Commercial and industrial | 1 | 795 | 783 | 1 | 933 | 933 | |||||||||||||||||||||||||||||
| Residential mortgage and consumer | 4 | 226 | 226 | 7 | 1,813 | 1,813 | |||||||||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| Number of Loans | Pre-modification Interest Yield | Post- modification Interest Yield | Number of Loans | Pre-modification Interest Yield | Post- modification Interest Yield | ||||||||||||||||||||||||||||||
| Multi-family | 1 | 4.38 | % | 4.38 | % | — | — | % | — | % | |||||||||||||||||||||||||
| Commercial real estate | 1 | 6.00 | % | 6.00 | % | 4 | 4.77 | % | 4.77 | % | |||||||||||||||||||||||||
| Commercial and industrial | 1 | 4.94 | % | 4.94 | % | 1 | 4.75 | % | 4.75 | % | |||||||||||||||||||||||||
| Residential mortgage and consumer | 4 | 6.82 | % | 3.07 | % | 7 | 5.94 | % | 5.94 | % | |||||||||||||||||||||||||
During the year ended December 31, 2021, the Company sold 3 non-performing multi-family loansawarded 262,281 restricted stock awards and no options under the 2015 Equity Plan. None of these grants were issued to directors or NEOs.
Settlement of Stockholder Litigation
Following the approval of the 2015 Equity Plan, on June 23, 2015, Investors Bancorp granted to executive officers, employees and directors a total of 6,849,832 restricted stock awards and 11,576,611 stock options to purchase Investors Bancorp common stock. Of this 2015 grant, a total of 3,333,333 restricted stock awards and 4,453,331 stock options were awarded to NEOs. Mr. Cummings was awarded 1,000,000 restricted stock shares, vesting in equal installments over a seven-year period, of which 250,000 shares were subject to the Company’s satisfaction of certain performance criteria. Mr. Cummings was also awarded 1,333,333 stock options exercisable at the then-market price, vesting in equal installments over a seven-year period. Mr. Cama was granted 800,000 restricted stock awards, vesting equally over seven years, with a net book balance200,000 shares being conditioned upon the Company meeting certain performance criteria, and 1,066,666 stock options, vesting equally over seven years, exercisable at the then-current market price. The performance shares awarded to Messrs. Cummings and Cama were ultimately determined to be earned at 70% of $19.9 million. target, and the shares so earned were vested in three annual installments through February 2020.
Also on June 23, 2015, each
non-executive
director was awarded (i) 250,000 stock options exercisable at the then-current market price, and (ii) 100,000 shares of restricted stock, in each case vesting in equal installments over five years, except for former directors Robert Cashill and Brian Dittenhafer, who were each awarded 150,000 shares of restricted stock, vesting in equal installments over three years.38
The Company recognized a recovery of $1.4 millionJune 23, 2015 awards were made at an important milestone in the allowanceCompany’s history, namely, the completion of its conversion from a mutual holding company to a fully public company, and were the result of a review and assessment process conducted by the Compensation and Benefits Committee, in consultation with external compensation and legal advisors, who had provided the Committee with information relating to the grant practices of companies that had converted from the mutual to stock form of organization and, in particular, companies of comparable size that had completed aconversion (a “Second Step Conversion”).
two-step
mutual-to-stock
Following the filing of the Company’s proxy statement in April 2016, three stockholder complaints were filed in the Court of Chancery of the State of Delaware, purportedly on behalf of the Company, which was named a nominal defendant, against certain current and former directors of the Company, including Messrs. Cummings and Cama (collectively, the “Director Defendants”). The complaints alleged breaches of fiduciary duty and unjust enrichment by the Director Defendants in connection with the equity grants awarded on June 23, 2015. The three complaints were consolidated by the Court of Chancery and captioned, and the Company and the Director Defendants moved to dismiss the Action for credit lossesfailure to state a claim and for failure to make a demand on the saleboard of directors before filing suit. In an opinion issued April 5, 2017, the Court of Chancery granted the motions and dismissed the Action against the
In re Investors Bancorp, Inc. Stockholder Litigation (the “Action”)
non-employee
directors because the 2015 Equity Plan contained meaningful, specific limits on awards to all director beneficiaries, and therefore the awards to thenon-employee
directors were ratified by the stockholders and entitled to business judgment protection. The Court of Chancery also dismissed the claims directed to the directors who were executive officers because the plaintiffs failed to make apre-suit
demand on the board.The plaintiffs appealed the Court of Chancery dismissal of the Action. In December 2017, the Delaware Supreme Court reversed, overturning existing Court of Chancery precedent regarding the availability of the ratification defense where stockholders have approved an equity plan which provides directors with discretion to grant themselves awards within certain limits, and holding that such awards are subject to entire fairness review. The Supreme Court further held that because the complaint alleged that the awards to Messrs. Cummings and Cama were made nearly contemporaneously with the directors’ own awards,
pre-suit
demand on the board would have been futile, and the claims pertaining to those awards could not be dismissed at the pleading stage.During 2018, the Company, the Director Defendants and the plaintiffs engaged in significant discovery, including the production and review of approximately 85,000 pages of documents and the taking of multiple depositions of the directors and other
non-parties.
The Director Defendants and plaintiffs also engaged in twofull-day
mediation sessions, at the conclusion of which the parties reached a settlement of the action.On March 6, 2019, the Company, the directors and the plaintiffs caused to be filed with the Court of Chancery a Stipulation and Agreement of Compromise, Settlement and Release (the “Settlement Agreement”).
39
A Notice of Pendency of Derivative Action, Proposed Settlement and Settlement Hearing (the “Settlement Notice”) was mailed to all stockholders of record, as well as to other persons or entities who held shares of the Company for the benefit of others, as of March 6, 2019. Among other things, the Settlement Notice described the terms of the settlement and indicated that the hearing to determine whether the Court of Chancery should approve the settlement would take place on May 23, 2019 in Dover, Delaware.
Nothing in the Settlement Agreement authorized, restricted or limited the power and ability of the Board of Directors to make future grants under the 2015 Equity Plan or a successor plan, or to otherwise provide compensation to any of the directors in the ordinary course. The Settlement Notice stated that the Compensation and Benefits Committee intended to consider whether to grant new or replacement awards under the 2015 Equity Plan to Messrs. Cummings and Cama.
In March 2019, the Compensation and Benefits Committee, with the assistance of Pearl Meyer, its independent compensation consultant, and Sullivan & Cromwell LLP, as compensation practices counsel, commenced a process to consider the issuance of equity grants to Messrs. Cummings and Cama to replace those being surrendered pursuant to the terms of the Settlement Agreement. The Compensation and Benefits Committee, with the assistance of its independent advisors, conducted various analyses to determine whether replacement grants should be made, and, if so, at what levels. These analyses included a review of grant practices and total direct compensation for CEOs and COOs at institutions similar to the Company, including the grant practices of companies which had converted from a mutual to stock form of organization, particularly companies of comparable size which had completed a Second Step Conversion.
On May 20, 2019, the Compensation and Benefits Committee authorized and approved, and recommended to the Board of Directors, the issuance of replacement awards of (i) 925,000 shares of restricted stock and 525,120 stock options to Mr. Cummings, and (ii) 740,000 shares of restricted stock and 420,096 stock options to Mr. Cama (collectively the “Replacement Awards”). The Board of Directors, excluding Messrs. Cummings and Cama, determined that it was advisable and in the best interests of the Company to approve and issue the Replacement Awards, subject to the surrender of the awards previously made to Messrs. Cummings and Cama in 2015 pursuant to the Settlement Agreement.
In granting the Replacement Awards to Messrs. Cummings and Cama, the Compensation and Benefits Committee and the Board of Directors indicated that the Replacement Awards were intended to modify and replace the awards previously made to Messrs. Cummings and Cama in 2015 and were not new awards. This resulted in the Compensation and Benefits Committee determining to use the same vesting schedule for the Replacement Awards as had been utilized in the awards previously granted to Messrs. Cummings and Cama in 2015.
The Settlement hearing was held on May 23, 2019. On June 21, 2019, the Court entered an order approving the settlement. On July 21, 2019 the settlement became effective. Accordingly, pursuant to the terms of the Settlement Agreement (i) a total of 2.5 million stock options, which constituted all of the stock options granted to
non-employee
directors (excluding Brendan J. Dugan who is deceased) and stock options granted to Paul Stathoulopoulos (who was not a director of the Company at the time of the equity grant on or40
about June 23, 2015) were surrendered; (ii) a total of 95,694 shares of restricted stock granted to the then
non-employee
directors of the Company and to thennon-director
Paul Stathoulopoulos scheduled to vest in 2020 were surrendered; and (iii) 100% of the stock options and restricted stock granted to Messrs. Cummings and Cama on or about June 23, 2015 were surrendered.The Replacement Awards were issued to Messrs. Cummings and Cama on July 22, 2019. The Replacement Awards were issued from the 2015 Equity Plan. The stock options have an exercise price of $12.54 per share; 25% of the stock options vested upon issuance with the remaining to vest ratably on June 23, 2020, June 23, 2021 and June 23, 2022. 545,241 shares of the restricted stock issued to Mr. Cummings and 436,190 shares of the restricted stock issued to Mr. Cama vested on July 22, 2019, with the remainder to vest on the same vesting schedule as was applicable to the June 23, 2015 awards (ratably on June 23, 2020, June 23, 2021 and June 23, 2022). In addition, neither Mr. Cummings nor Mr. Cama had received any other equity grants since 2015.
41
Below is a summary of the grant date fair value of stock options and stock awards granted to Messrs. Cummings and Cama on June 23, 2015 as well as the Replacement Awards issued to Messrs. Cummings and Cama on July 22, 2019. All stock options and stock awards granted on June 23, 2015 to Messrs. Cummings and Cama were either surrendered pursuant to the Settlement Agreement or forfeited in 2018 due to the level of achievement of the performance-based awards.
Name | Award Type | 2015 Original Awards ($) (1) | 2019 Replacement Awards ($) (2) | Change in Fair Value ($) | ||||||||||||
Kevin Cummings | Stock Options | 4,159,999 | 467,357 | (3,692,642 | ) | |||||||||||
| Restricted Stock | 12,540,000 | 10,230,500 | (2,309,500 | ) | ||||||||||||
| 16,699,999 | 10,697,857 | (6,002,142 | ) | |||||||||||||
Domenick A. Cama | Stock Options | 3,327,998 | 373,885 | (2,954,113 | ) | |||||||||||
| Restricted Stock | 10,032,000 | 8,184,400 | (1,847,600 | ) | ||||||||||||
| 13,359,998 | 8,558,285 | (4,801,713 | ) | |||||||||||||
| (1) | Represents the grant date fair value of the awards determined in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 11 to the audited financial statements included in the Annual Report on Form 10-K for the calendar year ended December 31, 2015. The fair value of the stock option awards was $3.12 as computed in accordance with FASB ASC Topic 718. The stock price on June 23, 2015 was $12.54. In 2018, Messrs. Cummings and Cama forfeited performance-based restricted shares with a grant date fair value of $940,500 and $752,400, respectively, as the performance-based restricted shared were deemed earned at 70% of target. |
| (2) | Represents the grant date fair value of the awards determined in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in Note 12 to the audited financial statements included in the Annual Report on Form 10-K for the calendar year ended December 31, 2019. The fair value of the stock option awards was $0.89 as computed in accordance with FASB ASC Topic 718. The stock price on July 22, 2019 was $11.06. |
On September 26, 2019, one of the loans. Also duringplaintiffs who had brought the year ended December 31, 2021,shareholder derivative action in 2016, which was the subject of the settlement, filed a new complaint in the Delaware Court of Chancery captioned Elburn v. Albanese, et. al (the “2019 Action”), alleging that the Replacement Awards described above were excessive, that the directors who approved these awards were not disinterested, and that the Company sold 2 non-performing commercial real estate loans withhad not properly disclosed the issuance of the Replacement Awards prior to its 2019 Annual Meeting of Stockholders. Defendants filed a net book balancemotion to dismiss the 2019 Action; in April 2020 the Delaware Court of $1.6 million.
Delaware Supreme Court. In DecemberAugust 2020 the Company sold $328.0 millionDelaware Supreme Court issued its ruling denying the motion for appeal. The parties engaged in limited discovery and a trial date was set for the 2019 Action for November, 2022. In September 2021, the plaintiffs filed a motion to expedite the trial and sought a trial date for the end of loans originated during2021 or earlier in 2022. On October 22, 2021, the year ended December 31, 2020 underDelaware Court of Chancery denied the U.S Small Business Administration Paycheck Protection Program. The resulting loss onmotion for an expedited trial. As of April 5, 2022, the sale was less than $1,000. Also during the year ended December 31, 2020, the Company sold a non-performing multi-family loan with a net book balance of $18.1 million. The Company recognized a recovery of $1.9 million in the allowance for credit losses on the sale.2019 Action remains pending.
| Year Ended December 31, | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Provision for loan losses | $ | (43,843) | 64,890 | ||||||||||||||||||||
| Provision for debt securities held-to-maturity | (1,397) | 700 | |||||||||||||||||||||
| Provision for off-balance sheet credit exposures | (3,436) | 4,568 | |||||||||||||||||||||
| Total provision for credit losses | $ | (48,676) | 70,158 | ||||||||||||||||||||
Benefits
Investors Bank provides its executives, including the NEOs, with medical, dental and vision insurance, disability insurance and group life insurance coverage consistent with the same benefits provided to all of its full-time employees. The NEOs are participants in our qualified retirement plans, including the ESOP, and 401(k) Plan offered to all full-time
42
employees of the allowance for credit losses for loans receivable is summarized as follows:
| Year Ended December 31, | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Balance at beginning of the period | $ | 282,986 | 228,120 | ||||||||||||||||||||
| Adjustment for adoption of ASC 326 | — | (3,551) | |||||||||||||||||||||
| Gross charge offs | (5,064) | (18,388) | |||||||||||||||||||||
| Recoveries | 5,605 | 7,735 | |||||||||||||||||||||
| Net charge-offs | 541 | (10,653) | |||||||||||||||||||||
| Allowance at acquisition on loans purchased with credit deterioration | 997 | 4,180 | |||||||||||||||||||||
| Provision for credit loss expense | (43,843) | 64,890 | |||||||||||||||||||||
| Balance at end of the period | $ | 240,681 | 282,986 | ||||||||||||||||||||
non-qualified
Supplemental ESOP and Retirement Plan (“SERP I”). The NEOs have accrued benefits under the tax-qualified
multiple employer defined benefit pension plan (the “Defined Benefit Plan”) and the | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
| Multi- Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2020 | $ | 56,731 | 115,918 | 79,327 | 7,267 | 19,941 | 3,802 | — | 282,986 | ||||||||||||||||||||||||||||||||||||||
| Charge-offs | (2,593) | (322) | (1,206) | — | (540) | (403) | — | (5,064) | |||||||||||||||||||||||||||||||||||||||
| Recoveries | 1,977 | 447 | 1,592 | — | 1,469 | 120 | — | 5,605 | |||||||||||||||||||||||||||||||||||||||
| Allowance at acquisition on loans purchased with credit deterioration | 149 | 730 | 17 | 46 | 41 | 14 | — | 997 | |||||||||||||||||||||||||||||||||||||||
| Provision for credit loss expense | (16,918) | (35,587) | 5,383 | 4,226 | (1,257) | 310 | — | (43,843) | |||||||||||||||||||||||||||||||||||||||
| Ending balance-December 31, 2021 | $ | 39,346 | 81,186 | 85,113 | 11,539 | 19,654 | 3,843 | — | 240,681 | ||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| Multi- Family Loans | Commercial Real Estate Loans | Commercial and Industrial Loans | Construction Loans | Residential Mortgage Loans | Consumer and Other Loans | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance-December 31, 2019 | $ | 74,099 | 50,925 | 74,396 | 6,816 | 17,391 | 2,548 | 1,945 | 228,120 | ||||||||||||||||||||||||||||||||||||||
| Adjustment for adoption of ASC 326 | (9,741) | (4,631) | (7,511) | (1,901) | 20,089 | 2,089 | (1,945) | (3,551) | |||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2020 | 64,358 | 46,294 | 66,885 | 4,915 | 37,480 | 4,637 | — | 224,569 | |||||||||||||||||||||||||||||||||||||||
| Charge-offs | (4,631) | (521) | (12,005) | — | (1,190) | (41) | — | (18,388) | |||||||||||||||||||||||||||||||||||||||
| Recoveries | 1,965 | 412 | 4,459 | — | 677 | 222 | — | 7,735 | |||||||||||||||||||||||||||||||||||||||
| Allowance at acquisition on loans purchased with credit deterioration | 209 | 3,208 | 287 | 127 | 344 | 5 | — | 4,180 | |||||||||||||||||||||||||||||||||||||||
| Provision for credit loss expense | (5,170) | 66,525 | 19,701 | 2,225 | (17,370) | (1,021) | — | 64,890 | |||||||||||||||||||||||||||||||||||||||
| Ending balance-December 31, 2020 | $ | 56,731 | 115,918 | 79,327 | 7,267 | 19,941 | 3,802 | — | 282,986 | ||||||||||||||||||||||||||||||||||||||
Under the ESOP, employees of Investors Bank and any subsidiary (unless excluded by the ESOP) who have been credited with at least 1,000 hours of service during a
12-month
period are eligible to participate in the ESOP. In 2005, the ESOP utilized proceeds from a loan received from Investors Bancorp to purchase 10,847,883 shares of common stock for the ESOP in connection with Investors Bancorp’s initial public offering in 2005. In connection with the completion of the Second Step Conversion and related stock offering on May 7, 2014, the ESOP purchased an additional 6,617,421 shares of common stock. The Company refinanced the outstanding principal and interest balance of $33.9 million and borrowed an additional $66.2 million to purchase the additional shares. The purchased shares serve as collateral for the loan. The loan is being repaid principally through annual contributions to the ESOP by Investors Bank and dividends paid on the unallocated ESOP shares over the30-year
loan. Shares purchased by the ESOP are held in a suspense account for allocation among the participants’ accounts as the loan is repaid on apro-rata
basis.Contributions to the ESOP and shares released from the suspense account in an amount proportional to the repayment of the ESOP loan are allocated to each eligible participant’s plan account, based on the ratio of each participant’s compensation to the total compensation of all eligible participants. Vested benefits will be payable generally upon the participants’ termination of employment and will be paid generally in the form of Investors Bancorp common stock. Pursuant to FASB ASC Topic
718-40,
we are required to record a compensation expense each year in an amount equal to the fair market value of the shares released from the suspense account.401(k) Plan
Investors Bank maintains the 401(k) Plan, a
tax-qualified
defined contribution retirement plan, for all employees who have satisfied the 401(k) Plan’s eligibility requirements. All eligible employees may begin participation in the 401(k) Plan on the first day of the plan year or the first day of the month following the date on which the employee attains age 21. A participant may contribute up to 60% of his or her compensation to the 401(k) Plan on apre-tax
basis, subject to the limitations imposed by the Internal Revenue Code. For 2021, the salary43
deferral contribution limit is $19,500. However, a participant over age 50 may contribute an additional $6,500 to the 401(k) Plan. A participant is always 100% vested in his or her salary deferral contributions. In addition to salary deferral contributions, the 401(k) Plan provides that Investors Bank will make an employer contribution equal to 50% of the allowance for credit losses for debt securities held-to-maturityparticipant’s salary deferral contribution, provided that such amount does not exceed 8% of the participant’s compensation earned during the 2021 plan year. In addition, during 2021, the 401(k) Plan did not include a discretionary profit sharing contribution. Participants will become 100% vested in their employer contributions after completing three years of credited service (which is summarized as follows:
| Year Ended December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| (In thousands) | |||||||||||
| Balance at beginning of the period | $ | 3,264 | — | ||||||||
| Impact of adopting ASC 326 | — | 2,564 | |||||||||
| Provision for credit losses | (1,397) | 700 | |||||||||
| Balance at end of the period | $ | 1,867 | 3,264 | ||||||||
Each participant has an individual account under the 401(k) Plan and December 31, 2020:
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Municipal Bonds | Corporate and Other Debt Securities | Total | Municipal Bonds | Corporate and Other Debt Securities | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of the period | $ | 34 | 3,230 | 3,264 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of adopting ASC 326 | — | — | — | 17 | 2,547 | 2,564 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit loss | (12) | (1,385) | (1,397) | 17 | 683 | 700 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at end of the period | $ | 22 | 1,845 | 1,867 | 34 | 3,230 | 3,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
one-time
purchase of Investors Bancorp common stock through the | Year Ended December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| (In thousands) | |||||||||||
| Balance at beginning of the period | $ | 17,667 | 425 | ||||||||
| Impact of adopting ASC 326 | — | 12,674 | |||||||||
| Provision for credit losses | (3,436) | 4,568 | |||||||||
| Balance at end of the period | $ | 14,231 | 17,667 | ||||||||
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| Land | $ | 10,142 | 10,731 | |||||||||||
| Office buildings | 37,486 | 44,895 | ||||||||||||
| Leasehold improvements | 123,565 | 124,752 | ||||||||||||
| Furniture, fixtures and equipment | 110,331 | 109,909 | ||||||||||||
| Construction in process | 7,021 | 6,992 | ||||||||||||
| 288,545 | 297,279 | |||||||||||||
| Less accumulated depreciation and amortization | 159,257 | 157,616 | ||||||||||||
| $ | 129,288 | 139,663 | ||||||||||||
| December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Operating lease right-of-use assets | $ | 199,603 | $ | 199,981 | |||||||
| Operating lease liabilities | 212,678 | 212,559 | |||||||||
| Weighted average remaining lease term | 8.5 years | 9.4 years | |||||||||
| Weighted average discount rate | 2.40 | % | 2.49 | % | |||||||
| Year Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Included in office occupancy and equipment expense: | |||||||||||||||||
| Operating lease cost | $ | 29,986 | $ | 26,242 | $ | 25,245 | |||||||||||
| Short-term lease cost | 827 | 460 | 306 | ||||||||||||||
| Variable lease cost | (2) | (2) | (1) | ||||||||||||||
| Included in other income: | |||||||||||||||||
| Sublease income | 209 | 253 | 268 | ||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 29,540 | $ | 24,973 | $ | 24,497 | |||||||||||
| Operating leases | 25,683 | 46,758 | 2,996 | ||||||||||||||
| December 31, 2021 | |||||
| (In thousands) | |||||
| 2022 | $ | 30,709 | |||
| 2023 | 29,746 | ||||
| 2024 | 29,440 | ||||
| 2025 | 28,786 | ||||
| 2026 | 24,349 | ||||
| Thereafter | 92,697 | ||||
| Total lease payments | 235,727 | ||||
| Less: Imputed interest | (23,049) | ||||
| Total operating lease liabilities | $ | 212,678 | |||
| December 31, 2021 | December 31, 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| Mortgage servicing rights | $ | 9,403 | 10,957 | |||||||||||
| Core deposit premiums | 5,847 | 3,560 | ||||||||||||
| Other | 515 | 581 | ||||||||||||
| Total other intangible assets | 15,765 | 15,098 | ||||||||||||
| Goodwill | 116,228 | 94,535 | ||||||||||||
| Goodwill and intangible assets | $ | 131,993 | 109,633 | |||||||||||
| Gross Intangible Asset | Accumulated Amortization | Valuation Allowance | Net Intangible Assets | |||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||||||||||
| Mortgage Servicing Rights | $ | 14,684 | (5,211) | (70) | 9,403 | |||||||||||||||||||||
| Core Deposit Premiums | 26,661 | (20,814) | — | 5,847 | ||||||||||||||||||||||
| Other | 850 | (335) | — | 515 | ||||||||||||||||||||||
| Total other intangible assets | $ | 42,195 | (26,360) | (70) | 15,765 | |||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Mortgage Servicing Rights | $ | 17,559 | (5,592) | (1,010) | 10,957 | |||||||||||||||||||||
| Core Deposit Premiums | 23,063 | (19,503) | — | 3,560 | ||||||||||||||||||||||
| Other | 1,150 | (569) | — | 581 | ||||||||||||||||||||||
| Total other intangible assets | $ | 41,772 | (25,664) | (1,010) | 15,098 | |||||||||||||||||||||
| Mortgage Servicing Rights | Core Deposit Premiums | Other | |||||||||||||||
| (In thousands) | |||||||||||||||||
| 2022 | $ | 351 | $ | 1,371 | $ | 57 | |||||||||||
| 2023 | 360 | 965 | 57 | ||||||||||||||
| 2024 | 370 | 656 | 57 | ||||||||||||||
| 2025 | 379 | 585 | 57 | ||||||||||||||
| 2026 | 382 | 529 | 57 | ||||||||||||||
| December 31, | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| Weighted Average Rate | Amount | % of Total | Weighted Average Rate | Amount | % of Total | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Non-interest bearing: | |||||||||||||||||||||||||||||||||||
| Checking accounts | — | % | $ | 4,658,319 | 22.37 | % | — | % | $ | 3,663,073 | 18.76 | % | |||||||||||||||||||||||
| Interest-bearing: | |||||||||||||||||||||||||||||||||||
| Checking accounts | 0.36 | % | 7,270,634 | 34.91 | % | 0.49 | % | 6,043,393 | 30.95 | % | |||||||||||||||||||||||||
| Money market deposits | 0.31 | % | 4,757,567 | 22.85 | % | 0.42 | % | 5,037,327 | 25.80 | % | |||||||||||||||||||||||||
| Savings | 0.24 | % | 2,043,152 | 9.81 | % | 0.48 | % | 2,063,447 | 10.57 | % | |||||||||||||||||||||||||
| Certificates of deposit | 0.43 | % | 2,094,966 | 10.06 | % | 0.97 | % | 2,718,179 | 13.92 | % | |||||||||||||||||||||||||
| Total Deposits | 0.26 | % | $ | 20,824,638 | 100.00 | % | 0.45 | % | $ | 19,525,419 | 100.00 | % | |||||||||||||||||||||||
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| Within one year | $ | 1,788,084 | 2,386,850 | |||||||||||
| One to two years | 178,287 | 271,302 | ||||||||||||
| Two to three years | 92,208 | 31,893 | ||||||||||||
| Three to four years | 12,476 | 15,016 | ||||||||||||
| After four years | 23,911 | 13,118 | ||||||||||||
| $ | 2,094,966 | 2,718,179 | ||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| 2021 | 2020 | 2019 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Checking accounts | $ | 27,488 | 42,014 | 84,698 | |||||||||||||
| Money market deposits | 20,508 | 42,568 | 60,896 | ||||||||||||||
| Savings | 5,591 | 12,056 | 17,148 | ||||||||||||||
| Certificates of deposit | 14,318 | 58,951 | 99,115 | ||||||||||||||
| Total | $ | 67,905 | 155,589 | 261,857 | |||||||||||||
| December 31, | ||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||
| Principal | Weighted Average Rate (1) | Principal | Weighted Average Rate (1) | |||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Funds borrowed under repurchase agreements: | ||||||||||||||||||||||||||
| Other brokers | $ | 449,117 | 1.97% | $ | 448,514 | 1.97% | ||||||||||||||||||||
| Other borrowed funds: | ||||||||||||||||||||||||||
| FHLB advances | 3,071,419 | 0.74% | 2,662,574 | 1.20% | ||||||||||||||||||||||
Subordinated debt (2) | 14,502 | 6.50% | 14,702 | 6.50% | ||||||||||||||||||||||
| Other | — | —% | 170,000 | 0.13% | ||||||||||||||||||||||
| Total other borrowed funds | 3,085,921 | 0.77% | 2,847,276 | 1.17% | ||||||||||||||||||||||
| Total borrowed funds | $ | 3,535,038 | 0.92% | $ | 3,295,790 | 1.28% | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||
| Principal | Weighted Average Rate (1) | Principal | Weighted Average Rate (1) | |||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Within one year | $ | 2,350,000 | 0.36% | $ | 1,513,000 | 0.33% | ||||||||||||||||||||
| One to two years | 497,448 | 2.12% | 574,741 | 2.15% | ||||||||||||||||||||||
| Two to three years | 673,088 | 1.90% | 520,989 | 2.10% | ||||||||||||||||||||||
| Three to four years | — | —% | 672,358 | 1.90% | ||||||||||||||||||||||
| Four to five years | — | —% | — | —% | ||||||||||||||||||||||
After five years (2) | 14,502 | 6.50% | 14,702 | 6.50% | ||||||||||||||||||||||
| Total borrowed funds | $ | 3,535,038 | 0.92% | $ | 3,295,790 | 1.28% | ||||||||||||||||||||
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Amortized cost of collateral: | ||||||||||||||
| Mortgage-backed securities | $ | 474,621 | 471,506 | |||||||||||
| Total amortized cost of collateral | $ | 474,621 | 471,506 | |||||||||||
| Fair value of collateral: | ||||||||||||||
| Mortgage-backed securities | $ | 488,896 | 494,160 | |||||||||||
| Total fair value of collateral | $ | 488,896 | 494,160 | |||||||||||
| Years Ended December 31, | ||||||||||||||||||||
| 2021 | 2020 | 2019 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Current tax expense: | ||||||||||||||||||||
| Federal | $ | 71,775 | 82,039 | 32,881 | ||||||||||||||||
| State | 28,926 | 27,112 | 12,743 | |||||||||||||||||
| 100,701 | 109,151 | 45,624 | ||||||||||||||||||
| Deferred tax (benefit) expense: | ||||||||||||||||||||
| Federal | 10,955 | (25,104) | 28,784 | |||||||||||||||||
| State | 3,424 | (9,086) | 16,840 | |||||||||||||||||
| 14,379 | (34,190) | 45,624 | ||||||||||||||||||
| Total income tax expense | $ | 115,080 | 74,961 | 91,248 | ||||||||||||||||
| Years Ended December 31, | ||||||||||||||||||||
| 2021 | 2020 | 2019 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| “Expected” federal income tax expense | $ | 89,967 | 62,273 | 60,214 | ||||||||||||||||
| State tax, net | 27,637 | 12,790 | 19,075 | |||||||||||||||||
| Impact of tax law changes | (1,240) | — | 7,823 | |||||||||||||||||
| Tax exempt interest | (2,410) | (2,399) | (1,519) | |||||||||||||||||
| Non-deductible FDIC premiums | 1,132 | 1,169 | 1,229 | |||||||||||||||||
| Bank owned life insurance | (1,375) | (1,394) | (1,374) | |||||||||||||||||
| Tax credits | (677) | (1,610) | — | |||||||||||||||||
| Other | 2,046 | 4,132 | 5,800 | |||||||||||||||||
| Total income tax expense | $ | 115,080 | 74,961 | 91,248 | ||||||||||||||||
| December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| (In thousands) | ||||||||||||||
| Deferred tax asset: | ||||||||||||||
| Employee benefits | $ | 27,716 | 29,754 | |||||||||||
| Deferred compensation | 412 | 480 | ||||||||||||
| Premises and equipment | 2,002 | 3,926 | ||||||||||||
| Allowance for credit losses | 66,127 | 84,018 | ||||||||||||
| Net unrealized loss on hedging activities | 1,749 | 30,399 | ||||||||||||
| ESOP | 4,866 | 4,123 | ||||||||||||
| Fair value adjustments related to acquisitions | 8,946 | 11,527 | ||||||||||||
| Loan origination costs | 8,475 | 8,004 | ||||||||||||
| State NOL | 399 | 312 | ||||||||||||
| Other | 5,703 | 1,393 | ||||||||||||
| Gross deferred tax asset | 126,395 | 173,936 | ||||||||||||
| Deferred tax liability: | ||||||||||||||
| Mortgage servicing rights | 2,640 | 3,034 | ||||||||||||
| Net unrealized gain on debt securities available-for-sale | 645 | 14,018 | ||||||||||||
| Equipment financing | 35,295 | 39,627 | ||||||||||||
| Other | 564 | 452 | ||||||||||||
| Gross deferred tax liability | 39,144 | 57,131 | ||||||||||||
| Net deferred tax asset | $ | 87,251 | 116,805 | |||||||||||
Defined Benefit Pension Plan
As of December 31, 2016, the annual benefit provided under the Pentegra DBDefined Benefit Plan was frozen by an amendment to the plan.frozen. Freezing the plan eliminated all future benefit accruals and each participant’s frozen accrued benefit was determined as of December 31, 2016 andwith no further benefits accrued subsequent to December 31, 2016.
Investors Bank participates in the Defined Benefit Plan. All employees age 21 or older who had completed one year of employment with Investors Bank were eligible for participation in the Defined Benefit Plan the first of the month following their
one-year
anniversary; however, only employees who had been credited with 1,000 or more hours of service with Investors Bank were eligible to accrue benefits under the Defined Benefit Plan. Effective with the freezing of the plan on December 31, 2016, employees hired after November 30, 2015 are ineligible for participation in the plan as they would not meet the service eligibility requirement. Investors Bank annually contributes an amount to the plan necessary to satisfy the minimum funding requirements established under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).The retirement benefit formula under the Defined Benefit Plan provides for a nonintegrated unit accrual formula with an annual accrual rate of 1.25% of the participant’s high five-year average salary, with a
30-year
salary cap. A participant’s average annual compensation is the average annual compensation over the five consecutive calendar years out of the last 10 calendar years in which the participant’s compensation was the greatest, or over all calendar years if less than five.44