The shares of this bank have recently risen above their 50-day moving average, a bullish
indicator. The bank is in an acquisitive mode, and gaining hedge fund interest.
Investors Bancorp, Inc. (ISBC)
From The Buyback Letter
Investors Bancorp, Inc. (ISBC) is the holding company for regional bank Investors Bank, which in turn provides a wide range of banking products and services for businesses and individuals in the U.S. The bank provides deposit products such as savings, checking, and money market accounts, along with certificates of deposits through some 137 offices in New Jersey and New York. As of September 30, 2015, the company had assets of $20.33 billion.
Last fall, mid-cap ISBC was noted for exceptional, industry-leading growth (17%, compared to an average growth rate of 5% for 60 comparable regional banks) and dirt cheap prices. It raised $2.2 billion in new funds in an IPO in 2014, providing excess capital, which is to be used to transition the bank from a consumer bank to a commercial bank, and to pay for expenses that go along with that transition (technology, for instance). The market has welcomed the change.
The bank also has the money to expand, and is eager to acquire other community banks. ISBC bought 8 community banks since 2008, gaining $4.5 billion in new deposits. The CEO has his sights set around the company’s New Jersey base, including Philadelphia, Easton, PA., Long Island and Westchester County.
Activist investor Clifton Robbins’ Blue Harbour Group disclosed an 8.2% ownership stake in ISBC last fall. His firm seeks high-quality businesses that are fundamentally undervalued and trading at a discount.
Q3 reported net income of $48.8 million and $137.1 million for the three and nine months ended September 30, 2015, respectively, compared to net income of $39.0 million and $88.6 million for the three and nine months ended September 30, 2014. Q4 will be announced late this month.
(WSBI Editor’s Note: Earnings for ISBC will be announced on January 28).
Management has reduced shares outstanding by 5.66% in the last 12 months.
David R. Fried, The Buyback Letter, www.buybackletter.com, 888-289-2225, January 16, 2016