Investors Bancorp, Inc. (NASDAQ: ISBC) announced a balance sheet restructure related to its securities portfolio. In addition, the Company announced the closure of four branches.

Balance Sheet Restructure

The Company recently completed the sale of approximately $665 million of its lower yielding mortgage-backed debt securities available-for-sale at an estimated non-recurring after tax loss of approximately $25 million or 9 cents per diluted share to be recognized in the fourth quarter of 2018. Proceeds from the sale were reinvested in debt securities yielding on average 160 basis points higher than the securities sold. The Company estimates the restructure will result in annual earnings accretion of approximately 3 cents per diluted share. The loss on sale is expected to have a minimal impact on tangible book value as the losses on these debt securities available-for-sale were already reflected in capital through accumulated other comprehensive loss.

Branch Rationalization

The Company plans to close three branch offices in its New Jersey network and one in New York. The branches are located in Edison, Newark and Pennington, NJ and Islandia, NY. The branch closures are part of the Company's strategy to improve operating efficiency. In connection with the closures, the Company expects to recognize non-recurring pre-tax expenses of approximately $2.8 million in the fourth quarter of 2018. There is no planned workforce reduction associated with these closures as the employees of these branches will be hired into current vacancies at the Company. The Company estimates the branch closures will reduce its annual operating expenses by approximately $1.6 million.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as of September 30, 2018 operates from its corporate headquarters in Short Hills, New Jersey with approximately $25.52 billionin assets and 151 branches located throughout New Jersey and New York.