Earnings at Investors Bancorp, Inc. Fall 60% Thanks to One-Time Costs

Thanks to costs associated with its expansion and recapitalization, Investors Bancorp seeings its earning fall by 60% in the second quarter.

Jul 25, 2014 at 2:04PM

Investors Bancorp (NASDAQ:ISBC) on Thursday announced earnings in the second quarter of 2014 standing $0.04 per share, down 60% from the $0.10 per share seen in the same period of last year. However a big reason for the loss was one-time costs of $20.2 million related to its previously announced stock offering of $2.2 billion in May.

"This offering resulted in our capital increasing to approximately 20% which allows us to continue our journey to build a high performing commercial bank in our market area," noted the president and CEO of Investors Bancorp, Kevin Cummings, in Thursday's announcement. "We are excited about the opportunities ahead of us and we thank all of our existing and new shareholders for their confidence in our Company."

Excluding the costs associated with the offering, Investors Bancorp noted its earnings per share stood at $0.10, which was slightly below the $0.11 average estimate of analysts polled by Yahoo! Finance.

As a result of its expansion and acquisitions, net interest income rose by nearly 30% to stand at $135 million in the second quarter. The bank noted this was principally the result of its interest earning assets rising to $16.4 billion, a gain of $3.9 billion over the second quarter of last year. In addition it saw a slight increase in its non-interest income, which rose 6.7% to $10.2 billion.

The second quarter also saw expenses at Investors Bancorp nearly double to $112 million. However this was primarily the result of the completion of its stock offering and various expenses associated with its acquisitions of Roma Financial Corporation and Gateway, which were completed in December and January.

"Excluding one-time items related to the second step capital offering, our earnings of $35.4 million were strong as we continue to grow and diversify our balance sheet," concluded Cummings in his prepared remarks.

Overall, after stripping away the one-time items, the results appeared strong at Investors Bancorp and it will be interesting to monitor how it progresses as it expands.

Risk-free for 30 days: The Motley Fool's flagship service
Tom and David Gardner founded The Motley Fool over 20 years ago with the goal of helping the world invest...better. Their flagship service, Stock Advisor, has helped thousands of investors take control of their financial lives and beat the market. Click here to sign up today.

Patrick Morris owns shares of Apple and Bank of America. The Motley Fool recommends Apple and Bank of America. The Motley Fool owns shares of Apple and Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information