Investors Bancorp (ISBC) in Short Hills, N.J., reported higher third-quarter earnings because of loan growth and better credit.
The $11.5 billion-asset company's earnings rose almost 23% from a year earlier, to $24.5 million, or 23 cents a share.
Net loans increased almost 6% from Dec. 31, to $9.3 billion, reflecting an ongoing focus on multifamily and commercial real estate loans. The origination largely dealt with properties in New Jersey and New York, the company said in a press release.
The yield on interest-earning assets fell due to the low interest rate environment, but the company was also able to reduce its cost of funds. The net interest margin contracted by just 4 basis points from a year earlier, to 3.35%.
Net interest income rose roughly 9% from a year earlier, to $91.9 million. The average balance of interest-earning assets rose about $1 billion from a year earlier, to $11 billion at Sept. 30. The loan-loss provision fell 20% from a year earlier, to $16 million.
Noninterest income increased more than 74% from a year earlier, to $12.7 million, because of increased gains on the sale of loans. The company also reported increases in its fees and service charges related to servicing third-party loan portfolios and from commercial deposit and loan accounts.