ISBC - Investors Bancorp: Acquisition Low Credit Cost To Drive Earnings Growth

• Loan growth will likely suffer from the pandemic. However, the overall loan growth will likely be positive because of the residential mortgage market and the acquisition of bank branches.
• The provision expense will likely remain low because of subdued loan growth and limited credit risk.
• The margin will likely decline as higher-yielding loans are replaced by new loans originated at lower rates. Maturing deposits and the acquisition of Berkshire’s branches will limit the margin compression.
• The potential price upside and the forward dividend yield combine to imply an attractive total expected return.

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