Quarterly profit of Investors Bancorp (ISBC) in Short Hills, N.J., rose 20%, as acquisitions led to higher lending income.
The $13.1 billion-asset company announced Thursday a second-quarter profit of $28.1, up from $24 million in the second quarter of 2012. Per-share earnings of 26 cents were 4 cents higher than the average estimates of analysts polled by Bloomberg.
Net interest income rose 14%, to $104.7 million, despite a 5-basis-point decrease in net interest margin, to 3.35%. Loan growth fueled the rise, as average interest-earning assets increased 16%, to $12.5 billion.
Investors has announced four deals in the past two years, two of which are pending. President and Chief Executive Kevin Cummings said in the news release he expects to close the deals for Roma Financial and Gateway Community Financial in the third quarter. The two other banks Investors recently acquired were Brooklyn Federal Bancorp and Marathon Bancorp, both in New York City.
Noninterest income dipped by 10%, to $9.5 million, as gains from sale on loans fell by nearly $1 million.
Provision for loan losses fell to $13.8 million, a 27% decline, and net chargeoffs fell 36%, to $8.9 million.