Investors Bancorp Plans Second-Step Conversion

Investors Bancorp (ISBC), in Short Hills, N.J., filed registration papers to dissolve its mutual holding company and convert to a fully stock-owned company.

Investors did not disclose the amount that it plans to raise with the second-step conversion. The company will use the proceeds "to continue capital initiatives such as organic growth, acquisitions, dividend payments and share repurchases," Kevin Cummings, president and chief executive, said in a news release.

Investors also did not disclose a projected date for the conversion.

With $13.8 billion of assets, Investors is the largest thrift majority-owned by a mutual holding company. As of Sept. 30, the mutual holding company owned about 62% of Investors Bancorp.

Cummings has said for months that Investors had been targeting a second-step conversion this year. But its acquisition of Roma Financial, a mutual thrift in Robbinsville, N.J., was delayed by several issues, including shareholder litigation, which in turn delayed Investors' second-step conversion. Investors completed its acquisition of Roma on Dec. 6.

Investors also has agreed to acquire another mutual thrift, Gateway Community Financial, in Sewell, N.J. Investors said it expects the Gateway acquisition to close before the second-step conversion. After it completes its second-step conversion, Investors will be barred from acquiring mutual thrifts.

Luse Gorman Pomerenk & Schick is giving legal counsel to Investors on the conversion. Investors did not name its financial advisers or its underwriter for the planned stock sale.