Buybacks at Regional Banks


David Fried Image David Fried Editor, The Buyback Letter

We last bought Investors Bancorp (ISBC) in January 2016 and it has floated to the top of our ranking again, explains David Fried, editor of The Buyback Letter.

Investors Bancorp 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 151 offices in New Jersey and New York. As of December 31st, 2016, the company had total assets of $23.2 billion.

In years past, mid-cap ISBC was noted for exceptional, industry-leading growth 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 welcomed the change. The bank now also has the money to expand, and planned 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. They were in the news recently because they terminated their merger agreement with The Bank of Princeton.

Quarter 4 reported net income of $52.5 million, compared to $44.4 million for the same period a year ago. For 2016, net income was $192.1 million, compared to $181.5 million for 2015.