Investors Bancorp in N.J. Reports Higher Profit on Loan Growth

Investors Bancorp in Short Hills, N.J., posted higher profit in the third quarter, with strong interest income growth offsetting higher employee-related costs.

Net income for the holding company of the $20.3 billion-asset Investors Bank grew 25% to $48.8 million. Earnings per share rose 36% to 15 cents. The results included a one-time $4.1 million tax benefit related to a net operating loss carryforward from a previous acquisition.

Net interest income before the loan-loss provision grew 9.7% to $151.3 million. Average net loans rose 14.5% to $15.5 billion, with notable growth in multifamily loans, commercial real estate, and commercial and industrial loans. The net interest margin dropped 13 basis points to 3.14%.

Noninterest income grew 14.5% to $11.3 million from higher gains on loans, securities transactions and sales of foreclosed properties.

Noninterest expense rose 12.2% to $85.9 million, largely due to higher compensation and fringe benefits. The efficiency ratio expanded 100 basis points to 52.85%.

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