Investors Bancorp, Inc. (NASDAQ: ISBC) extinguished $1 billion in wholesale funding with an average rate of 2.01%. As previously disclosed, a portion of the wholesale funding was extinguished in October, while the remainder was extinguished on December 22, 2020.

The Company incurred $24 million of pre-tax costs associated with the early extinguishment which were partially offset with a pre-tax gain of approximately $23 million as the Company completed two previously disclosed sale leaseback transactions in the fourth quarter. The Company expects these actions will have a positive impact on its net interest margin and EPS going forward.

The Company also intends to consolidate ten branch offices in 2021 and expects annual savings of approximately $3 million to $4 million in connection therewith. The Company expects to incur approximately $11 million in non-recurring pre-tax costs relating to the branch consolidations in the fourth quarter of 2020.

Additionally, during December 2020, the Company sold its portfolio of approximately $328 million of PPP loans. This transaction had a negligible impact on the Company's financial statements.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as of September 30, 2020 operates from its corporate headquarters in Short Hills, New Jersey with approximately $26.6 billion in assets and 155 branches located throughout New Jersey and New York.