Investors Bancorp, Inc (ISBC) has reported 10.97 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $43.44 million, or $0.15 a share in the quarter, compared with $48.79 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $43.44 million, or $0.15 a share compared with $44.72 million or $0.14 a share, a year ago. Revenue during the quarter grew 3.52 percent to $163.13 million from $157.58 million in the previous year period. Net interest income for the quarter rose 5.51 percent over the prior year period to $159.61 million. Non-interest income for the quarter fell 24.64 percent over the last year period to $8.52 million.
Net interest margin contracted 14 basis points to 3 percent in the quarter from 3.14 percent in the last year period. Efficiency ratio for the quarter deteriorated to 54.36 percent from 52.85 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Kevin Cummings, President and Chief executive officer commented, "While we continue to grow, asset quality remains strong here at Investors as our non-performing loan ratios continue to fall. We remain mindful of commercial real estate concerns in our primary lending areas and will continue to be diligent in our lending practices."
Liabilities outpace assets growth
Total assets stood at $20,888.68 million as on Sep. 30, 2016, up 2.74 percent compared with $20,331.33 million on Sep. 30, 2015. On the other hand, total liabilities stood at $17,577.04 million as on Sep. 30, 2016, up 3.58 percent from $16,969.14 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $16,661.13 million as on Sep. 30, 2016, up 3.15 percent compared with $16,152.76 million on Sep. 30, 2015. Deposits stood at $14,063.66 million as on Sep. 30, 2016, up 5.42 percent compared with $13,341.16 million on Sep. 30, 2015.
Investments stood at $3,148.92 million as on Sep. 30, 2016, up 1.73 percent or $53.68 million from year-ago. Shareholders equity stood at $3,311.65 million as on Sep. 30, 2016, down 1.50 percent or $50.54 million from year-ago.
Return on average assets moved down 18 basis points to 0.79 percent in the quarter from 0.97 percent in the last year period. At the same time, return on average equity decreased 20 basis points to 5.56 percent in the quarter from 5.76 percent in the last year period.
Nonperforming assets to total loans was 0.58 percent in the quarter, down from 0.64 percent in the last year period.
Average equity to average assets ratio was 14.82 percent for the quarter, down from 15.18 percent for the previous year quarter. Book value per share was $10.47 for the quarter.
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