Investors Presentation Annual Shareholder Meeting May 23, 2017 1
Investors Bancorp, Inc. Investor Presentation Forward Looking Statements Certain statements contained herein are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as may, will, believe, expect, estimate, anticipate, continue, or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks, as described in our SEC filings, and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operated, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company s financial performance and could cause the Company s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 2
Core Values Cooperation The act of working together towards a common purpose or benefit. Character The combination of features and traits that form the individual nature of a person or team. Community A self-organized network of people who collaborate by sharing ideas and information for the sake of the common good. Commitment A pledge, promise or obligation. 3
Corporate Profile With assets of $23.9 billion, Investors Bancorp, Inc. is the largest bank headquartered in New Jersey 152 branches in NJ and NY Traded on the NASDAQ under symbol ISBC Established in 1926, completed its first-step conversion in October 2005 raising $516 million in capital In May 2014, the Company completed its second step conversion raising $2.2 billion in capital Competitive Strategy Community involvement and engaged employee base differentiate Investors Bank from other banks, particularly large banks Well capitalized balance sheet with stable and healthy credit metrics 4
Asset Growth ($ in millions) +82 $23,175 $23,889 $20,889 $21,190 $18,774 $12,723 $15,623 13 Dec 12 Dec 13 Dec14 Dec 15 Dec 16 Mar 16 Mar 17 5
Loan Growth ($ in millions) +80 $18,811 $19,505 $15,100 $16,891 28.2 $17,153 14 27.5 $13,065 32.8 31.7 41.1 $10,438 40.0 46.7 39.7 38.0 48.6 37.0 33.4 28.7 30.5 23.7 23.8 22.7 22.7 20.8 18.9 19.2 6.2 6.8 6.1 7.0 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Mar 16 Mar 17 C&I Construction Commerical RE Multi Family Residential and Consumer 6
Lending Initiatives Continued build out of Business Lending Asset Based Lending Health Care Lending Life Insurance Lending Business Lending * ($ in millions) $1,104 $1,642 $2,048 $685 Dec 13 Dec 14 Dec 15 Dec 16 * Business Lending includes owner-occupied real estate loans classified as commercial real estate loans. 7
Asset Quality ($ in millions) $150 $136.3 $139.9 $144.0 $137.9 1.40 $130 1.31 1.20 $110 $90 $70 1.07 0.95 0.82 $103.7 $99.3 1.00 0.80 $50 $30 0.55 0.51 0.60 0.40 $10 0.20 $10 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Mar 17 0.00 Non Performing Loans Non Performing Loans to Total Loans Non Performing Loans include non-accrual loans and performing TDR loans. 8
Deposit Growth ($ in millions) Strong deposit growth with positive change in composition $14,064 +74 $15,281 $14,201 $15,376 $10,719 $12,172 8 $8,769 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Mar 16 Mar 17 Certificate of Deposit Core Deposits 9
Deposits Total Deposit Composition De Novo Impact 14 December 31, 2016 $15.3 Billion 19 40 Year Opened New Jersey # of Branches Average Balance 2007 2014 13 $111 million 2015 2016 10 $44 million New York 27 Checking Accounts Savings Money Market CD Year Opened # of Branches Average Balance 2011 2014 8 $71 million 2015 2016 11 $13 million De Novo branches opened through December 2016, average balance of deposits as of March 2017. 10
Diluted Earnings per Share $0.80 +100 $0.70 $0.60 $0.50 $0.40 $0.30 $0.55 $0.64 $0.20 $0.32 $0.40 $0.38 33 $0.10 $0.12 $0.14 $0.16 $ 2012 2013 2014 2015 2016 Q1 2015 Q1 2016 Q1 2017 Diluted EPS Growth 11
Strong Financial Metrics (at March 31, 2017) 150 88.79.89 56.3 61.4 5 Yr Shareholder Return Return on Average Assets Efficiency Ratio 0.44 0.69 1.18 0.89 12.9 8.4 Non Performing Assets to Allowance to Total Loans Total Assets Investors Peer Average Tangible Capital to Tangible Assets Source: SNL Financial. Peer Group : Associated Banc-Corp, BankUnited Inc., Commerce Bancshares Inc., F.N.B. Corp., Fulton Financial Corp., IBERIABANK Corp., MB Financial Inc., New York Community Bancorp, People s United Financial Inc., Signature Bank, TCF Financial Corp., UMB Financial Corp., Umpqua Holdings Corp., Valley National Bancorp, Webster Financial Corp., and Wintrust Financial Corp. 12
Since Second Step Increase in EPS and Dividends Stock Buybacks Investment in Infrastructure and Technology Dividend per Share Tangible Capital Ratio $0.08 $0.04 20 13 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 2014 Q1 2017 Q1 2015: Quarterly cash dividend increased to $0.05 per share. In addition, a special cash dividend of $0.05 per share was paid. As a result, the cumulative dividend was $0.10 per share. 13
Strategic Plan Initiatives Continued Focus on Business Lending Enterprise Risk Management, including BSA Resolution Efforts Deposit Initiatives Enhance mobile technologies and commercial product offerings IT investments Brand awareness advertising campaign Prudent Capital Management Target 10 ROE Maintain Focus on Delivering Superior Customer Service Involvement in Communities in Which We Operate 14
Banking with the Pros Brand Awareness Experts in the Field Campaign Aligning with community minded partners Multi-Media Television In -Branch Video Content Radio Billboards Social Media https://www.myinvestorsbank.com/pages/meet_the_pros_you_can_bank_on Phil Simms (far left) and Boomer Esiason (far right) are Investors Bank Chief Operating Officer Domenick Cama and Chief Executive Officer Kevin Cummings. 15
Total Return Performance $450.00 $400.00 $393 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $129 $50.00 $0.00 ISBC Total Return SNL U.S. Bank and Thrift Return 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: SNL Financial, total return (as of March 31, 2017) assumes the reinvestment of dividends and is expressed in dollars based on an assumed investment of $100. 16
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