Investors Bancorp (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.