Higher expenses soften gains at Investors Bancorp
Investors Bancorp in Short Hills, N.J., posted solid gains in loans and revenue, but the $23.9 billion-asset company's operating costs increased significantly.
Investors reported first-quarter net income of $46 million, up a modest 3% from the same period in 2016. That amounted to 16 cents per share, in line with analysts’ consensus estimate as compiled by FactSet Research Systems.
The company was hampered by an 11% increase in compensation and benefits and an 85% jump in consulting fees. Investors said in June that it had entered into an informal agreement with regulators as a result of Bank Secrecy Act and anti-money-laundering compliance issues.
“We continue to invest in our risk management infrastructure as well as BSA-remediation initiatives,” President and CEO Kevin Cummings said late Thursday in a press release.
Overall, noninterest expense rose 14% to $99.6 million.
Investors said it originated $1.16 billion of loans in the quarter. Average loans totaled $18.8 billion on March 31, an increase of 12%.
Revenue was $177 million, and average deposits were $15.64 billion, each increased 8% increases.
Net chargeoffs were $1.5 million, while nonaccrual loans declined 21% to $87.1 million and were 0.45% of total loans.
Investors’ growth plans sustained a blow in January when the company was forced to terminate a planned merger with neighboring Bank of Princeton.