Categories

A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

Why Apple added debt to its $145 billion cash hoard

Thumbnail

Anton TwAng

Apple is making headlines with rumors of a record-sized bond sale.

According to reports, Cupertino is likely taking advantage of historically dirt-cheap interest rates on corporate debt by raising about $17 billion from a series of six types of bond papers.

It’s not the largest non-bank bond sale in history, but it does rank near the top. Automaker General Motors raised $17.5 billion in bond financing a decade ago, for example. Then again, GM’s financing arm, then known as GMAC, sort of made a bank out of the car builder. Pharma giants Abbott Laboratories and Roche Holdings also issued $14.7 billion and $16 billion in bond debt fairly recently. Record-level or not, Apple’s sale certainly ranks right up there with the big boys.

Why Apple needs more cash now

You might wonder why one of the world’s richest companies is raising debt right now. There’s no single factor forcing Apple’s hand here, but there is a perfect storm of ingredients that add up to a hunger for new debt.

First, interest levels are vanishingly low at the moment. Bond interest rates are typically attached to the rates of US Treasury Notes, and every flavor of these important papers are trading near 10-year lows. In short, it’s rarely this cheap and easy to get your hands on fresh loans.

TNX

data by

YCharts

Second, Apple just announced that it plans to return $100 billion directly to shareholders over the next three years. That’s more than double the previous plan, which called for $45 billion in dividend payments and share buybacks by the end of 2015. Even Scrooge McDuck would have a hard time finding that much spare change in his couch pillows, which explains why Apple is resorting to some financial engineering to fund the expanded plan.

Which brings us directly to the third point: Much of Apple’s $145 billion in cash and investments come from sales outside the US and it’s locked down in bank accounts on foreign shores. Simply closing those bulging Swiss, Irish, and Cayman bank accounts would make Apple’s cash subject to so-called repatriation taxes. As much as one-third of that cache would go to Uncle Sam. The company only has about $45 billion in dollar-denominated All-American cash on hand to power that generous dividend and buyback program.

Better, then, to pick up cheap debt that’s backed by the international cash reserves and use that as fuel for the shareholder-friendly programs. Let the foreign reserves percolate until the government tries another repatriation tax holiday, like the Homeland Investment Act of 2004. Or perhaps until Apple finds a use for its foreign cash, like a large acquisition.

Lastly, Apple is no longer the high-growth wunderkind of Wall Street that it used to be. Like Microsoft did 10 years ago, Cupertino has started catering to value and dividend investors. That demographic loves companies that hand out cash to shareholders, and debt is a perfectly acceptable source of financing for such policies. Look at the big banks as an example. Bank of America manages a $610 billion cash reserve but also sits on $618 billion in debt. That’s just how these guys roll, making a mint on the spread between the returns on their own investments and the interest they offer to customers. Apple follows a proven path here.

$145 billion in the bank and still no perfect credit rating

So Apple’s bond sale comes from the confluence of several key events. The company isn’t even alone in exploring low-interest bond sales right now. Microsoft posted a $1.9 billion sale last week. Redmond’s bonds garnered top-notch AAA credit ratings from both Moody’s and Standard & Poor’s, just edging out Apple’s AA+ S&P grade and Aa1 from Moody’s.

Triple-A businesses outside the banking world include Microsoft, Exxon Mobil, Automatic Data Processing, and Johnson & Johnson. All of these are proven cash machines just like Apple, but the devil is in the details. Moody’s pinned Apple’s imperfect rating on working in “a highly volatile industry” and needing to raise as much as $50 billion in debt over the next five or six years. “Just based on that, it didn’t smell like a triple-A,” a Moody’s analyst told Bloomberg.

The third major credit ratings agency, Fitch, went further and suggested that Apple could be at risk of a spectacular implosion similar to those of Sony, Nokia, and Motorola Mobility. “Each has historically had a dominant market position and strong financial metrics, only to falter over a relatively short period of time,” Fitch analysts wrote in a recent Apple report. Cupertino simply doesn’t have the long-term contracts that a true top-notch credit rating requires.

What’s next?

The next few years will be critical to Apple’s long-term health. The company is making the transition from high growth to stable income—and change is never easy.

Tim Cook and company may set their sights too high and make promises they can’t keep. Cutting down an announced buyback-and-dividend plan is hazardous to your share price, and diving too deeply into debt can damage your financial health. So Apple would be smart to set the bar low.

Shoot too low, and you’ll look like you don’t believe in your own future. That’s another surefire way to scare away investors, not to mention trend-sensitive consumers.

It’s a tricky balancing act. We’re sure that Apple will be around ten years from now, but the coming two or three years will map out the path to a healthy, mature business—or a company on the ropes.

[…]

CFPB: Troubling stats on payday loans « Bankrate, Inc.

Image pinit_preview_none.png

Whether you call it a payday loan or a direct deposit advance, it stands a good chance of wrecking your finances, according to a new study by the Consumer Financial Protection Bureau.

Most people are familiar with payday loans, which are mostly taken out at dedicated storefronts and involve paying a set amount per $100 borrowed on a loan that comes due on your next payday. Because of the substantial interest and the short duration of the loans, the interest rates are shockingly high, with annual percentage rates averaging 339 percent, according to the CFPB study.

Direct deposit advances are similar, except that they’re offered at many of the nation’s largest banks, and the loan payment comes out of the next direct deposit instead.

The CFPB study, which may set the stage for new rules on lenders, finds that while borrowers appreciate the easy access to credit that direct-deposit advances provide, they often get into trouble with them. Here are some of the more eye-opening statistics.

Direct-deposit-advance users are much more likely to get overdrafts than nonusers. Almost two-thirds, or 65 percent, of users had at least one overdraft during the 12-month study period compared to just 14 percent of nonusers, despite the fact that some banks tout direct-deposit advances as a way to avoid overdrafts. Direct-deposit advances tend to get multiple loans during the year. The median user had an outstanding direct-deposit advance seven out of 12 months in the study period, and the average user had an outstanding balance of 112 days during those 12 months. The average payday-loan user paid $574 in fees over to lenders over the course of a year, which is substantial considering more than two-thirds of users made $30,000 per year or less, and more than 40 percent made less than $20,000. The median direct-deposit advance user had just less than $3,000 in direct deposited income per month, and users had a median of 30 debit card transactions per month versus 10 for nonusers.

With some of these statistics, it’s important to remember that correlation and causation aren’t the same thing. For instance, are people who overdraft their checking accounts more likely to need a direct-deposit advance, or are people more likely to overdraft because of direct-deposit advances?

But the study does paint a picture of two financial products that can create a financially dangerous cycle of dependence in borrowers. It seems possible that the CFPB will take some sort of action to limit the negative effects of these products on consumers such as seeking new limits on how often a person can use them or how much banks and payday lenders can charge in interest.

What do you think? Are payday lending and direct-deposit advances dangerous for consumers? Should the CFPB act?

Follow me on Twitter: @claesbell.

[…]

Rapid Auto Loans of Florida Now Offers Faster Approval Times for Quick Cash – Loans Can Now Be Processed in Just 15 …

Thumbnail


Rapid Auto Loans of Florida Now Offers Faster Approval Times for Quick Cash – Loans Can Now Be Processed in Just 15 Minutes

Rapid Auto Loans adds faster approval times as their customers asked for quick cash.

Pompano Beach, FL (PRWEB) April 30, 2013

Rapid Auto Loans of Florida is one of the few title loan companies that offers consistently flexible repayment terms and very low interest rates. They have been providing Florida residents with quick access to cash by allowing them to access the equity in the cars they already own. Borrowers can still drive their car while the loan is being repaid, providing them with the cash they need instantly without parting with their much needed vehicles. The company has now announced that they have made concessions for the need for faster access to funding. In response to a growing need for instant loans, they have modified their approval process and can now approve a loan in just 15 minutes. This provides their customers with the speed they need to assist them in any financial situation.

In addition to faster online approval, Rapid Auto Loans has several convenient inspection stations where applicants can take their vehicles for a fast and speedy inspection. The cities where this service is currently available include Bartow, Miami, Daytona Beach, Jacksonville, Kissimmee, Lauderdale, Naples, Fort Myers, Ocala, Orlando, Pompano, Port St. Lucie, Stuart, Tampa, and West Palm Beach.

The approval process begins when applicants fill out the information on the online form like name; phone number and email are the standard questions. After this basic information has been submitted, Rapid Auto Loan is able to make a quick decision about whether to approve the auto title loan. With the process now completely streamlined, the entire approval time can occur in only 15 minutes or less. The anxiety of waiting to find out whether or not a loan approval has been granted is completely eliminated with the fast and easy loan process offered by Rapid Auto Loan.

Customers of Rapid Auto Loan will also enjoy attractive loan terms during the course of the time their loan is outstanding. Rates can be as low as 1.50% and the actual length of time to repay is 12 months with payments being accepted at any Wells Fargo ATM machine 24/7. This innovative method allows applicants with even the lowest credit rating to have an opportunity for access to cash when they need it most.

Rapid Auto Loan is a leader in creative personal financing solutions for the greater Florida area. Their customer driven approach has yielded a responsive and attentive company that delivers a service that is greatly utilized by the communities they serve. For more information about receiving a quick auto loan, visit their website at http://www.raloan.com .


[…]

Payday loan complaints rise – The Spokesman-Review

Here’s a news item from the Associated Press: BOISE, Idaho (AP) — Idaho financial regulators are logging more complaints from consumers about the practices of payday lenders. The Idaho Department of Finance received 56 complaints about payday loans last year, up from 38 in 2011. The Idaho Statesman reports (http://bit.ly/13INm9e ) the agency also recently issued nine cease and desist orders against online payday lenders, with most targeting out-of-state websites. Payday loans are often considered a predatory form of lending because of their high fees and interest rates. Consumer Finance Bureau Chief Michael Larsen says most of the complaints from consumers are about illegally garnished wages or lenders pushing through unfinished loan applications. Lawmakers have tried but failed in recent years to impose limits on the industry. Idaho caps payday loan amounts at $1,000 but doesn’t regulate interest rates.

[…]

Etihad extends $300 mln soft loan to India's Jet to help trim high-cost borrowing: report

10 countries with the largest labour force

On International Labour Day, we present to you the countries with the largest labour force.
(The … More » 10 countries with the largest labour force

Astroyogi: Hottest overseas job destinations

Ruling numbers can reveal a lot about you. Find out which country is lucky for you based on your ruling … More » Astroyogi: Hottest overseas job destinations

Revealed: Countries without central banks

While most countries depend on central banks to increase their monetary base, these nations operate … More » Revealed: Countries without central banks

Academic qualifications of India’s top business leaders

If you thought all of India’s business leaders were born with a silver spoon in … More » Academic qualifications of India’s top business leaders

Billionaires of the Persian Gulf

Take a look at the top 15 billionaires from the Gulf region who made it to the Forbes 2013 billionaires … More » Billionaires of the Persian Gulf

Are Bitcoins ready to be the new currency?

By Pritam P. Hans Reproduced From Business Today. © 2013. LMIL. All rights reserved. More » Are Bitcoins ready to be the new currency?

HSBC’s forecast for gold and silver prices

We have seen gold and silver prices decline recently. Read on to find out the future trend of these precious … More » HSBC’s forecast for gold and silver prices

Most traded currencies in the world

This is a list of the most popularly traded and circulated currencies and in the world. More » Most traded currencies in the world

The world’s 15 richest Muslim countries

We look at the world’s 15 richest countries in which Islam is the majority religion of the peopl … More » The world’s 15 richest Muslim countries

Indian banks will be closed on these days

Do you know when your banks will be closed for business this year? These dates are observed as public … More » Indian banks will be closed on these days

Inside Google’s magnificent Munich office

Check out the colorful and stunning interiors of Google’s Munich office. More » Inside Google’s magnificent Munich office

Tips to find a low cost budget home

One must be feeling the pinch of inflation — with costs rising even with basic necessities of everyday … More » Tips to find a low cost budget home

Career lessons from 7 female CEOs

Commentary about high-powered female professionals is often dichotomous. Praise for their empowering … More » Career lessons from 7 female CEOs

5 reasons Mumbai may see a real estate price correction

Is … More » 5 reasons Mumbai may see a real estate price correction

Have you tried KFC’s new ‘potato’ burger?

By Dearton Thomas Hector

Reproduced From Business Today. © 2013. LMIL. All rights reserved. More » Have you tried KFC’s new ‘potato’ burger?

7 financial secrets of the wealthy

Becoming wealthy enough to keep the wolf from your door doesn’t mean an end to unwanted callers. … More » 7 financial secrets of the wealthy

Tips to avoid tax deduction at source

It’s that time of the year, when you have to submit your investment declaration. … More » Tips to avoid tax deduction at source

Porsche’s new brand ambassador is pretty

She’s beautiful, she’s an achiever and she’s the face promoting the iconic German carmak … More » Porsche’s new brand ambassador is pretty

House pricing trends across India’s major cities

National Housing Bank’s Residex Index tracks the movement of residential prices across India’s 15 cities, … More » House pricing trends across India’s major cities

Top 10 countries struggling for funds

Globally, the proportion of businesses citing lenders as supportive of their business has increased marginally … More » Top 10 countries struggling for funds

Unilever offers $5.4 billion to raise HUL stake; stock soarsReuters

Unilever plans to pay up to $5.4 billion to raise its stake in its Indian subsidiary, making its biggest … More » Unilever offers $5.4 billion to raise HUL stake; stock soars

Berkshire size, Buffett age cloud annual gatheringReuters

By Jonathan Stempel and Jennifer Ablan REUTERS – Warren Buffett may be on safari for major acquisitions, … More » Berkshire size, Buffett age cloud annual gathering

Cyprus bailout scrapes through island’s parliamentReuters

Cyprus’s parliament approved an EU bailout on Tuesday which will force it to wind down its second-largest … More » Cyprus bailout scrapes through island’s parliament

IOC to cut petrol prices from WednesdayReuters

REUTERS – Indian Oil Corp , the country’s biggest refiner, will cut petrol prices by 4.5 percent from … More » IOC to cut petrol prices from Wednesday

Wall St off on weaker-than-expected data, profit-takingReuters

U.S. stocks fell on Tuesday after a weaker-than-expected index of Midwest business activity, and investors … More » Wall St off on weaker-than-expected data, profit-taking

India targets foreign money with investment tax cutReuters

India cut tax rates for foreign investors on interest income from investments in government and corporate … More » India targets foreign money with investment tax cut

Gold eases on strong rupeeReuters

Indian gold futures eased on Tuesday due to a stronger rupee amid steady overseas markets, while physical … More » Gold eases on strong rupee

March infrastructure output up 2.9 percentReuters

India’s infrastructure sector output rose 2.9 percent in March from a year earlier, government data showed … More » March infrastructure output up 2.9 percent

Baring Asia in talks to invest $240 mln in Lafarge India: sourcesReuters

Private equity firm Baring Asia is in advanced talks with the Indian arm of French cement maker Lafarge … More » Baring Asia in talks to invest $240 mln in Lafarge India: sources

Sensex ends above 19,500; gains 3.5 percent in AprilReuters

The BSE Sensex closed at its highest in 1-1/2 months on Tuesday, led by gains in Hindustan Unilever after … More » Sensex ends above 19,500; gains 3.5 percent in April

CEA pitches to hike FDI in insuranceHindustan Times

New Delhi, April 30 — At a time when the government is trying its best to boost sentiments among investors … More » CEA pitches to hike FDI in insurance

Mistry names his core team to run Tata groupHindustan Times

New Delhi, April 30 — Setting in motion a generational change in the top leadership at India’s biggest … More » Mistry names his core team to run Tata group

Douse this fire nowHindustan Times

New Delhi, April 30 — There seem to be too many troublesome balls up in the air for the UPA to juggle. … More » Douse this fire now

Infosys struggles as industry laggardHindustan Times

New Delhi, April 30 — When Infosys became the first Indian company to list on the technology-heavy Nasdaq … More » Infosys struggles as industry laggard

Stepping on too many coalminesHindustan Times

New Delhi, April 30 — There could not have been a worse turn of events for a government already on the … More » Stepping on too many coalmines

Saradha Group operations in Odisha under scannerIANS

Bhubaneswar, April 30 (IANS) Odisha Police Tuesday said they are keeping a close watch on the operations … More » Saradha Group operations in Odisha under scanner

‘Bring back generation-based incentives for wind power fast’IANS

Chennai, April 30 (IANS) Even though the government has been sending out positive signals for the wind … More » ‘Bring back generation-based incentives for wind power fast’

Two Ponzi funds will be shut down, says Bengal governmentIANS

Kolkata, April 30 (IANS) The West Bengal government would shut down by Wednesday two companies having … More » Two Ponzi funds will be shut down, says Bengal government

Sundaram BNP Home Finance to raise around Rs.4,000 croreIANS

Chennai, April 30 (IANS) City based Sundaram BNP Paribas Home Finance will get a capital infusion of … More » Sundaram BNP Home Finance to raise around Rs.4,000 crore

Bosch sales drop in a weak first quarter of 2013IANS

Bangalore, April 30 (IANS) Automotive and industrial major Bosch Ltd reported 3.4 percent drop year-on-year … More » Bosch sales drop in a weak first quarter of 2013

Indian indices stay in greenEquitymaster

Indian share markets continued to trade in the green during the previous two hours of trade. Sectoral … More » Indian indices stay in green

Should we fund current account deficit this way?Equitymaster

Desperate times need desperate measures. It’s an age old adage that perhaps the former Finance Minister … More » Should we fund current account deficit this way?

Mid caps outperformEquitymaster

Indian equity markets continued to trade in the green during the previous two hours of trade. Sectoral … More » Mid caps outperform

Are banks playing it too safe?Equitymaster

The sluggish investment climate is a trend that the government has been trying to reverse over the past … More » Are banks playing it too safe?

Sensex ends week 1.4% higherEquitymaster

Despite selective buying interest in index heavyweights, weak economic cues from global markets coupled … More » Sensex ends week 1.4% higher

Trading Forex Trends With MACD And Moving AveragesInvestopedia

Although based on short-term trading, keeping the long-term picture in mind will help investors trade … More » Trading Forex Trends With MACD And Moving Averages

How The 2014 Obama Budget Could Affect Your FinancesInvestopedia

Depending on which estimate you believe, Obama’s proposed budget would raise the tax bill of a household … More » How The 2014 Obama Budget Could Affect Your Finances

A Day In The Life Of A Portfolio ManagerInvestopedia

Portfolio managers go by a number of job titles, manage different asset types and work under different … More » A Day In The Life Of A Portfolio Manager

Playoff Perks For Pro AthletesInvestopedia

If personal pride, a stellar resume and increased job security aren’t enough incentive for some pro athletes, … More » Playoff Perks For Pro Athletes

How To Become A Sophisticated InvestorInvestopedia

No one doubts the value and importance of investor education and sophistication, but many investors are … More » How To Become A Sophisticated Investor

BP’s $4.2 Billion Profit Beats ForecastsNew York Times

Even though profit was 11 percent lower than the same quarter last year, an analyst called the report … More » BP’s $4.2 Billion Profit Beats Forecasts

Another Executive Leaves JPMorgan, Raising Questions as Vote NearsNew York Times

The turnover at the highest levels of the bank continues just weeks before a shareholder vote decides … More » Another Executive Leaves JPMorgan, Raising Questions as Vote Nears

Twitter Speaks, Markets Listen, and Fears RiseNew York Times

After a Twitter hoax caused the Dow to drop temporarily by 150 points, regulators are increasingly concerned … More » Twitter Speaks, Markets Listen, and Fears Rise

Deal Gives News Site a Presence on Cable TVNew York Times

Programming from HuffPost Live, an Internet channel, will be carried for six hours a day on AXS TV, which … More » Deal Gives News Site a Presence on Cable TV

Venture Capitalists Are Making Bigger Bets on Food Start-UpsNew York Times

The ultimate goal of venture capitalists in Silicon Valley, who funneled about $350 million into food … More » Venture Capitalists Are Making Bigger Bets on Food Start-Ups

Wealth Gap Among Races Has Widened Since RecessionNew York Times

The wealth gap might still be growing, experts said, further dimming the prospects for economic advancement … More » Wealth Gap Among Races Has Widened Since Recession

Loans Borrowed Against Pensions Squeeze RetireesNew York Times

Pension advances, federal and state authorities say, are carefully disguised loans that carry interest … More » Loans Borrowed Against Pensions Squeeze Retirees

Millionaires Clash Over Socialite’s Child Support ClaimsNew York Times

A Wall Street financier claims that his former lover’s current partner aided her in hiding her true wealth … More » Millionaires Clash Over Socialite’s Child Support Claims

Southern Europe’s Recession Threatens to Spread NorthNew York Times

Germany and other nations in Northern Europe could be caught in the recession of Southern Europe, which … More » Southern Europe’s Recession Threatens to Spread North

In Two-Way Charging, Electric Cars Begin to Earn Money From the GridNew York Times

An experiment with two-way chargers allows consumers to power their cars and also send power back to … More » In Two-Way Charging, Electric Cars Begin to Earn Money From the Grid

7 Secrets Wealthy People Know About Amassing And Maintaining A FortuneForbes

A fortune requires finesse. As well as a willingness to embrace financial exotica, trips to Bermuda and … More » 7 Secrets Wealthy People Know About Amassing And Maintaining A Fortune

The NBA’s Most Underpaid PlayersForbes

Two solid veteran pickups in L.A. – the Clippers’ Matt Barnes and the Lakers’ Antawn Jamison – lead the … More » The NBA’s Most Underpaid Players

Apple Needs More Than Just A Hardware UpgradeForbes

With quarterly earnings under way, investors are once again trying to glean whatever incremental Image … More » Apple Needs More Than Just A Hardware Upgrade

25 College Diplomas With the Highest PayForbes

Students who recently graduated from Carnegie Mellon University’s School of Computer Science are making … More » 25 College Diplomas With the Highest Pay

Pentagon Budget Request Sticks With Obama Priorities, Ignores Deficit LawForbes

USS Ronald Reagan and USS Preble during straits training exercise. (Photo credit: Official U.S. Navy … More » Pentagon Budget Request Sticks With Obama Priorities, Ignores Deficit Law

‘Downton Abbey’ Star Lily James Cast As Disney’s CinderellaBusiness Insider

In live-action adaptation of the animated film. More » ‘Downton Abbey’ Star Lily James Cast As Disney’s Cinderella

The State Of Maine Just Gave Apple Some Painful NewsBusiness Insider

Its buying students HP Windows 8 PCs instead of Macs. More » The State Of Maine Just Gave Apple Some Painful News

Mark Cuban Is Massively Short The Yen — Here’s Why He’s Making His First Ever Monster Bet Against A Foreign …Business Insider

All of his debt is in yen. More » Mark Cuban Is Massively Short The Yen — Here’s Why He’s Making His First Ever Monster Bet Against A Foreign …

Here’s How This Physical Trainer Scored A 7-Figure Book DealBusiness Insider

An interview with John Romaniello. More » Here’s How This Physical Trainer Scored A 7-Figure Book Deal

Here Is Martha Stewart’s New Match.com ProfileBusiness Insider

“Yes, it’s really me.” More » Here Is Martha Stewart’s New Match.com Profile

Fat-Cat Bankers Hiss Back at WashingtonUS News

BEVERLY HILLS, CALIF. – Since the 2008 financial meltdown, Washington politicians and many of their constituents … More » Fat-Cat Bankers Hiss Back at Washington

How to Build Your Retirement Money PlanUS News

Turning your retirement savings into a flow of predictable income payments is, of course, essential to … More » How to Build Your Retirement Money Plan

Easy Facelifts to Sell Your Home NowUS News

Eager to sell your home? Be careful. Many people anxious to sell feel prepared–to find a buyer, negotiate … More » Easy Facelifts to Sell Your Home Now

6 Easy Steps to Get Your FAFSA in OrderUS News

Each year, the U.S. Department of Education awards approximately $150 billion in grants, work-study funds … More » 6 Easy Steps to Get Your FAFSA in Order

One Mom’s Not-So-Extreme Guide to CouponingUS News

There are plenty of excuses for not couponing: I’m busy running a business. Clipping coupons takes too … More » One Mom’s Not-So-Extreme Guide to Couponing

Study finds ‘personalised’ leadership key to successful global ‘leader-member exchange’ANI

Washington, Apr 30 (ANI): According to a business study, companies with employees located around the … More » Study finds ‘personalised’ leadership key to successful global ‘leader-member exchange’

Now, app that automatically reshapes your face to look betterANI

Wellington, Apr 30 (ANI): An app called Pixtr has been developed, which promises to “put your best face … More » Now, app that automatically reshapes your face to look better

Alibaba buys 18 pct stake of Chinese blogging site Weibo for $586 mlnANI

Beijing, Apr. 30 (Xinhua-ANI): E-commerce giant Alibaba has purchased 18 percent stake of China’s popular … More » Alibaba buys 18 pct stake of Chinese blogging site Weibo for $586 mln

Mobile chat apps overtake SMS for first time everANI

London, Apr. 30 (ANI): The amount of messages being sent using instant chat apps, such as Whatsapp and … More » Mobile chat apps overtake SMS for first time ever

Apple lays groundwork for first-ever debt issueANI

Sydney, Apr. 30 (ANI): Apple has moved towards its first-ever debt issue and is filing documents describing … More » Apple lays groundwork for first-ever debt issue

Govt. asks banks to fast track implementation of DBT schemeANI

New Delhi, April 30 (ANI): The government has asked banks to fast track implementation of the Direct … More » Govt. asks banks to fast track implementation of DBT scheme

Now, charge your cellphones with puddle of waterANI

Washington, Apr 30 (ANI): Researchers in Sweden have developed a new technique where you can charge your … More » Now, charge your cellphones with puddle of water

LG Electronics begins sale of world’s 1st curved OLED TVANI

Beijing, Apr. 30 (Xinhua-ANI): South Korea’s consumer electronics giant LG Electronics said Monday that … More » LG Electronics begins sale of world’s 1st curved OLED TV

Wall Street rally sends S andP to record high and Nasdaq to 12.5-year highANI

Washington, Apr. 30 (Xinhua-ANI): U.S. stocks rose on Monday, with the S andP 500 closing at a record … More » Wall Street rally sends S andP to record high and Nasdaq to 12.5-year high

CII for early conclusion with adequate safeguard for sensitive sectorsANI

New Delhi, Apr. 29 (ANI): Confederation of Indian Industry (CII) has called for a balanced outcome from … More » CII for early conclusion with adequate safeguard for sensitive sectors

College Startup Rethinks LaundryEntrepreneur

A prepaid campus laundry service offers a lesson in entrepreneurship. More » College Startup Rethinks Laundry

In Mobile Push, Facebook Buys Parse to Court App DevelopersEntrepreneur

Facebook’s $85 million acquisition, Tumblr’s new mobile ads, Zach Braff’s Kickstarter project and more … More » In Mobile Push, Facebook Buys Parse to Court App Developers

How to Lead With Grace Through TragedyEntrepreneur

Jim Koch, the brewmaster behind Sam Adams Lager, talks about how his business responded to the Boston … More » How to Lead With Grace Through Tragedy

Be Curious Like Steve Jobs and 4 More Business Tips From the WeekEntrepreneur

The best tips of the week from Entrepreneur.com, from adopting Steve Jobs’ curiosity to protecting yourself … More » Be Curious Like Steve Jobs and 4 More Business Tips From the Week

Keeping Your Customers Satisfied — It’s All in the DetailsEntrepreneur

One entrepreneur’s story of how he gained a long-term customer by going the extra mile to set himself … More » Keeping Your Customers Satisfied — It’s All in the Details

Active private role must for 8% growthThe Telegraph

New Delhi, April 29: An average 8 per cent annual growth in the 12th Five-Year Plan (2012-2017) will … More » Active private role must for 8% growth

Lanco settles Aussie case, share spurtsThe Telegraph

New Delhi/Hyderabad, April 29: In a “big relief” for the diversified group, Lanco Infratech today said … More » Lanco settles Aussie case, share spurts

BP lobbies for more price sopsThe Telegraph

New Delhi, April 29 (PTI): BP plc has asked Prime Minister Manmohan Singh for a $1.5 per mBtu additional … More » BP lobbies for more price sops

Jet churn before Etihad entryThe Telegraph

Mumbai, April 29: The promoters of Jet Airways (India) Ltd have decided to rejig the shareholding structure … More » Jet churn before Etihad entry

Marginal rise in Exide netThe Telegraph

Calcutta, April 29: Exide Industries has posted a 2.76 per cent jump in net profit at Rs 146.46 crore … More » Marginal rise in Exide net

[…]

Payday Loan Lenders May Offer More Appealing Rates than Bank Fees, New Study Shows

SAN ANTONIO, Texas, April 30, 2013 /PRNewswire/ —

Consumers searching for fast finance options may be well advised to look for a payday loan online rather than approach a bank or utilize a credit card, suggests a study comparing rates and fees.

The New York Federal Reserve Bank Staff Reports released the Defining and Detecting Predatory Lending study which showed that cash advance lenders offer better rates that previously thought, especially when compared to bounced check fees, late payments for credit cards and the financial consequences of missing bill payments.

The study illustrated that the annualized rate for a bank bounced check would equate to 100% APR and the general late payment fee for a credit card would correlate to over 700% APR. The reconnect charges and late fees of most utility companies would be close to 1300% APR when annualized. This is in stark contrast to the heavily regulated and capped fees and charges applicable to payday loans in the U.S. states that allow them. As such, online cash advance options, when used legally and responsibly, are a beneficial and accessible emergency borrowing solution with no hidden fees.

Traditional banks and alternative credit unions that are reviewing their lending practices to make criteria tougher to pass are not in a position to review cash advance applications immediately and grant access to funds the next working day. The bureaucratic processes of these avenues do not serve the needs of consumers that require fast cash. Payday loan online comparison sites, such as PaydayLoan-Lenders.com is supported by a consortium of top lenders that have the means to assess applications there-and-the following the submission of a brief online application form.

The process is simple, online, fast and secure. After hitting “submit,” applicants can wait a few seconds to see on screen if any of the featured payday loan lenders can offer a loan. There is no obligation to accept any offer and consumers have the right to make unlimited free searches until they find the right short term loan for them. Approved and accepted loans can be paid into bank checking accounts within 24 hours.

To learn more or to be considered by top lenders, visit: http://www.PaydayLoan-Lenders.com

Contact:
Sam Malka
+1-773-280-7571

[…]

Should I take out a loan to file for bankruptcy?

Dear Bankruptcy Adviser,
I am trying to file bankruptcy and have talked to a lawyer. Unfortunately, I do not have the money to file without making my financial situation even more delicate. I have thought of getting a small personal loan just to cover the expenses of the lawyer so I can file. I know that is not the right way to do things, but I see no other option. Is it possible to do that and still have that debt eliminated as well? Or would I just be creating a bigger hole for myself?
— Douglas

Dear Douglas,
I know you are not writing in to say that you want to do something illegal and to get away with it. You are broke, you want to file for bankruptcy protection and you don’t have access to cash.

That being said, you can borrow money from a creditor and use that money to pay for the services of a bankruptcy attorney, though you are obligated to list this company as one of your creditors. But is it right to borrow money knowing you have no intention of paying it back? Probably not.

Bankruptcy should be for eliminating debts that you cannot pay back after you have exhausted all attempts to do so. No one should eliminate debt without having the intention to make a good-faith effort to pay back the debt.

In your question, it seems you have no intention of paying back this loan. Consider these other options first.

  1. Many bankruptcy attorneys allow for monthly payments and will let you send creditor calls to them while you are making fee payments.
  2. Try borrowing money from a 401(k) or retirement account.
  3. See if a few friends can give you a little bit of money to help out with the fees, or borrow some money from family.
  4. Even a part-time, temporary job could help you earn the few hundred dollars needed to file.

If you must borrow the money, know that the creditor may challenge your right to eliminate that loan in the bankruptcy and require you to pay it back. In fact, there is a provision in the bankruptcy code that says any charges incurred in the 90 days prior to filing your case are presumed nondischargeable. There is the same presumption for cash advances in the 70 days prior to filing.

A presumption means the court initially would side with the creditor if the creditor claimed you had no intentions of paying back those charges or cash advances made within those time periods. You would need to provide evidence that you did intend to pay back those charges or cash advances.

Even outside of that particular provision, creditors can look further back to challenge your right to discharge a debt. Creditors review your account when receiving the bankruptcy notation and look for unreasonable or uncharacteristic charges. For example, you had a $20,000 limit on your card but never used it, then over a two-month period, you ran up $10,000 in charges and filed bankruptcy six months or a year later. The creditor can challenge your right to eliminate the entire balance even if the charges occurred outside the 90-day presumption period.

Creditors can go back years, if they want. The further back you made the charges or advances, the less likely the creditor is to challenge it, but the creditor still has that right.

If borrowing is the only way you see fit to file, work with the creditor to negotiate and pay back a portion of or the entire loan to set yourself on the right footing for bankruptcy recovery.

Ask the adviser

To ask a question of the Bankruptcy Adviser, go to the “Ask the Experts” page and select “Bankruptcy” as the topic. Read more Bankruptcy Adviser columns and more stories about debt management.

Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.

More From Bankrate.com

Sell home in bankruptcy?
Trust safe in bankruptcy?
Can bank take my money?
[…]

Federal Home Loan Bank of San Francisco Announces First Quarter 2013 Operating Results

SAN FRANCISCO–(BUSINESS WIRE)–

The Federal Home Loan Bank of San Francisco today announced that its net income for the first quarter of 2013 was $81 million, compared with net income of $169 million for the first quarter of 2012.

The decrease in net income for the first quarter of 2013 reflected a decline in net interest income to $127 million, down from $242 million for the first quarter of 2012. This decline was due, in part, to lower average balances of advances, mortgage-backed securities, and mortgage loans; a decline in earnings on invested capital because of lower average capital balances and the lower interest rate environment; lower advance prepayment fees; and an increase in dividends on mandatorily redeemable capital stock, which are classified as interest expense.

Other income/(loss) for the first quarter of 2013 was a loss of $4 million, compared to a loss of $20 million for the first quarter of 2012. The loss for the first quarter of 2013 reflected a net loss associated with derivatives, hedged items, and financial instruments carried at fair value of $24 million; net interest income on derivative instruments used in economic hedges of $21 million, which was generally offset by net interest expense on the economically hedged assets and liabilities; and a credit-related other-than-temporary impairment charge of $3 million on certain private-label residential mortgage-backed securities (PLRMBS).

During the first quarter of 2013, total assets increased $1.2 billion, or 1%, to $87.6 billion at March 31, 2013, from $86.4 billion at December 31, 2012. Total advances increased $2.9 billion, or 7%, to $46.7 billion at March 31, 2013, from $43.8 billion at December 31, 2012. In total, 32 members increased their use of advances during the first quarter of 2013, while 72 institutions reduced their advances borrowings.

Accumulated other comprehensive loss declined $341 million during the first quarter of 2013, to $453 million at March 31, 2013, from $794 million at December 31, 2012, primarily as a result of improvement in the fair value of PLRMBS classified as available-for-sale.

As of March 31, 2013, the Bank was in compliance with all of its regulatory capital requirements. The Bank’s total regulatory capital ratio was 11.60%, exceeding the 4.00% requirement. The Bank had $10.2 billion in regulatory capital, exceeding its risk-based capital requirement of $4.1 billion. Total retained earnings were $2.3 billion as of March 31, 2013.

The Bank repurchased $750 million and redeemed $1 million in excess capital stock during the first quarter of 2013. As of March 31, 2013, the Bank’s excess capital stock totaled $4.6 billion. In light of the Bank’s strong regulatory capital position, the Bank plans to repurchase up to $750 million in excess capital stock on May 17, 2013.

Today, the Bank’s Board of Directors declared a cash dividend on the capital stock outstanding during the first quarter of 2013 at an annualized rate of 3.38%. The Bank expects to pay the dividend (including dividends on mandatorily redeemable capital stock), which will total $71 million, on or about May 16, 2013.

Financial Highlights

(Unaudited)

(Dollars in millions)

Selected Balance Sheet Items at Period End

Mar. 31, 2013 Dec. 31, 2012 Total Assets $87,593 $86,421 Advances 46,713 43,750 Mortgage Loans Held for Portfolio, Net 1,173 1,289 Investments1 37,861 40,528 Consolidated Obligations: Bonds 64,296 70,310 Discount Notes 12,829 5,209 Mandatorily Redeemable Capital Stock 3,907 4,343 Capital Stock – Class B – Putable 3,951 4,160 Unrestricted Retained Earnings 290 246 Restricted Retained Earnings 2,013 2,001 Accumulated Other Comprehensive Income/(Loss) (453 ) (794 ) Total Capital 5,801 5,613 Selected Other Data at Period End Regulatory Capital Ratio2 11.60 % 12.44 % Three Months Ended Selected Operating Results for the Period Mar. 31, 2013 Mar. 31, 2012 Net Interest Income $127 $242 Provision for/(Reversal of) Credit Losses on Mortgage Loans — 1 Other Income/(Loss) (4 ) (20 ) Other Expense 30 32 Assessment 12 20 Net Income $81 $169 Selected Other Data for the Period Net Interest Margin3 0.59 % 0.88 % Operating Expenses as a Percent of Average Assets 0.12 0.10 Return on Average Assets 0.37 0.62 Return on Average Equity 5.59 13.99 Annualized Dividend Rate4 2.30 0.48 Average Equity to Average Assets Ratio 6.62 4.40 1. Investments consist of Federal funds sold, trading securities, available-for-sale securities, held-to-maturity securities, securities purchased under agreements to resell, and loans to other Federal Home Loan Banks. 2. This ratio is calculated as regulatory capital divided by total assets. Regulatory capital includes mandatorily redeemable capital stock (which is classified as a liability), but excludes accumulated other comprehensive income/(loss). Total regulatory capital as of March 31, 2013, was $10.2 billion. 3. Net interest margin is net interest income (annualized) divided by average interest-earning assets. 4. Dividend rates reflect the dividends declared, recorded, and paid during the relevant periods.

Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgage loans to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank’s members are headquartered in Arizona, California, and Nevada and include commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements related to the Bank’s dividend rates and OTTI charges. These statements are based on our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “plans,” “expects,” and “will,” or their negatives or other variations on these terms. The Bank cautions that by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the application of accounting standards relating to, among other things, the amortization of discounts and premiums on financial assets, financial liabilities, and certain fair value gains and losses; hedge accounting of derivatives and underlying financial instruments; the fair values of financial instruments, including investment securities and derivatives; and OTTI of investment securities. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Contact:

Federal Home Loan Bank of San Francisco

Amy Stewart, 415-616-2605

stewarta@fhlbsf.com […]

Investors Bancorp, Inc. Announces First Quarter Financial Results and Cash Dividend

SHORT HILLS, N.J., April 29, 2013 /PRNewswire/ — Investors Bancorp, Inc. (ISBC) (“Company”), the holding company for Investors Bank (“Bank”), reported net income of $27.2 million for the three months ended March 31, 2013 compared to net income of $18.9 million for the three months ended March 31, 2012. Basic and diluted earnings per share were $0.25 for the three months ended March 31, 2013 compared to $0.18 for the three months ended March 31, 2012. The three month period ended March 31, 2012 included expenses related to the Brooklyn Federal acquisition.

The Company announced today that the Board of Directors has declared a cash dividend of $0.05 per share to stockholders of record as of May 10, 2013, payable on May 24, 2013. The majority of the outstanding stock of the Company is owned by Investors Bancorp MHC, a mutual holding company, which will receive the dividend payment along with the public shareholders.

Commenting on the results from the quarter, Kevin Cummings, President and CEO stated, “I am pleased to announce that Investors posted record earnings this quarter. This marks our 15th consecutive quarter where earnings per share, excluding merger related charges, increased 15% or better over prior year quarter. We continue to build a strong balance sheet with manageable non performing assets and believe this positions us well for a potential second step capital raise.”

Regarding the Company’s recently announced acquisitions, Mr. Cummings stated, “We are looking forward to the pending acquisitions of Roma Financial Inc. and Gateway Community Financial Inc. These franchises will greatly enhance our presence in the southern New Jersey market and is an effective use of our mutual holding company structure.”

The following represents performance highlights and significant events that occurred during the period:

Net loans increased $157.1 million, or 1.5%, to $10.46 billion at March 31, 2013 from $10.31 billion at December 31, 2012. During the three months ended March 31, 2013, we originated $227.3 million in multi-family loans and $129.6 million in commercial real estate loans. Deposits increased by $5.5 million from December 31, 2012, or 0.1% to $8.77 billion at March 31, 2013. Core deposits increased $86.6 million or 1.5% from December 31, 2012. As of March 31, 2013, core deposits exceeds 67.1% of total deposits. Efficiency ratio was 50.1% for the three months ended March 31, 2013 and 55.5% for the three months ended March 31, 2012. Net interest margin for the three months ended March 31, 2013 was 3.36%. This represents an increase of 3 basis points compared to March 31, 2012 and a decrease of 15 basis points compared to the fourth quarter of 2012. On April 5, the Company announced the signing of a definitive merger agreement with Gateway Community Financial Corporation (“Gateway”) which operates 4 branches in Gloucester County, New Jersey. As of December 31, 2012 Gateway had assets of $309.8 million, deposits of $278.6 million and net worth of $24.6 million. On February 25, 2013 the Company paid its second cash dividend to stockholders of $0.05 per share.

Comparison of Operating Results

Interest and Dividend Income

Total interest and dividend income increased by $8.2 million, or 6.8%, to $129.4 million for the three months ended March 31, 2013 from $121.2 million for the three months ended March 31, 2012. This increase is attributed to the average balance of interest-earning assets increasing $1.61 billion or 15.3%, to $12.16 billion for the three months ended March 31, 2013 from $10.55 billion for the three months ended March 31, 2012 due to organic growth and acquisitions. This was partially offset by the weighted average yield on interest-earning assets decreasing 34 basis points to 4.26% for the three months ended March 31, 2013 compared to 4.60% for the three months ended March 31, 2012.

Interest income on loans increased by $9.6 million, or 8.7%, to $119.9 million for the three months ended March 31, 2013 from $110.3 million for the three months ended March 31, 2012, reflecting a $1.45 billion or 16.2%, increase in the average balance of net loans to $10.36 billion for the three months ended March 31, 2013 from $8.92 billion for the three months ended March 31, 2012. The increase is primarily attributed to the average balance of multi-family loans and commercial real estate loans increasing $1.18 billion and $552.8 million, respectively as we continue to focus on diversifying our loan portfolio by adding more multi-family loans and commercial real estate loans. This was partially offset by the decrease in the average balance of residential loans and construction loans of $250.1 million and $41.8 million, respectively for the three months ended March 31, 2013. The increase also reflects $3.1 million in loan prepayment fees recorded in interest income for the three months ended March 31, 2013 compared to $1.1 million for the three months ended March 31, 2012. The increase was partially offset by a 32 basis point decrease in the average yield on net loans to 4.63% for the three months ended March 31, 2013 from 4.95% for the three months ended March 31, 2012, as lower rates on new and refinanced loans reflect the current interest rate environment.

Interest income on all other interest-earning assets, excluding loans, decreased by $1.4 million or 12.7%, to $9.6 million for the three months ended March 31, 2013 from $11.0 million for the three months ended March 31, 2012. The decrease is attributed to the weighted average yield on interest-earning assets, excluding loans, decreasing by 55 basis points to 2.13% for the three months ended March 31, 2013 compared to 2.68% for the three months ended March 31, 2012 reflecting the lower interest rate environment. This was partially offset by a $164.4 million increase in the average balance of all other interest-earning assets, excluding loans, to $1.80 billion for the three months ended March 31, 2013 from $1.63 billion for the three months ended March 31, 2012.

Interest Expense

Total interest expense decreased by $6.1 million, or 18.2%, to $27.4 million for the three months ended March 31, 2013 from $33.5 million for the three months ended March 31, 2012. This decrease is attributed to the weighted average cost of total interest-bearing liabilities decreasing 39 basis points to 1.03% for the three months ended March 31, 2013 compared to 1.42% for the three months ended March 31, 2012. This was partially offset by the average balance of total interest-bearing liabilities increasing by $1.19 billion, or 12.6%, to $10.62 billion for the three months ended March 31, 2013 from $9.43 billion for the three months ended March 31, 2012.

Interest expense on interest-bearing deposits decreased $5.6 million, or 30.8% to $12.7 million for the three months ended March 31, 2013 from $18.3 million for the three months ended March 31, 2012. This decrease is attributed to a 36 basis point decrease in the average cost of interest-bearing deposits to 0.63% for the three months ended March 31, 2013 from 0.99% for the three months ended March 31, 2012 as deposit rates reflect the lower interest rate environment. This was partially offset by the average balance of total interest-bearing deposits increasing $622.6 million, or 8.5% to $7.99 billion for the three months ended March 31, 2013 from $7.37 billion for the three months ended March 31, 2012. Core deposit accounts- savings, checking and money market outpaced average total interest-bearing deposit growth as average core deposits increased $1.10 billion over the past year.

Interest expense on borrowed funds decreased by $447,000 or 3.0%, to $14.7 million for the three months ended March 31, 2013 from $15.2 million for the three months ended March 31, 2012. This decrease is attributed to the average cost of borrowed funds decreasing 70 basis points to 2.24% for the three months ended March 31, 2013 from 2.94% for the three months ended March 31, 2012 as recent borrowings were priced at current interest rates. This was partially offset by the average balance of borrowed funds increasing by $568.0 million or 27.5%, to $2.63 billion for the three months ended March 31, 2013 from $2.06 billion for the three months ended March 31, 2012.

Net Interest Income

Net interest income increased by $14.3 million, or 16.3%, to $102.0 million for the three months ended March 31, 2013 from $87.7 million for the three months ended March 31, 2012. The increase was primarily due to the average balance of interest earning assets increasing $1.61 billion to $12.16 billion at March 31, 2013 compared to $10.55 billion at March 31, 2012, as well as a 39 basis point decrease in our cost of interest-bearing liabilities to 1.03% for the three months ended March 31, 2013 from 1.42% for the three months ended March 31, 2012. These were partially offset by the average balance of our interest bearing liabilities increasing $1.19 billion to $10.62 billion at March 31, 2013 compared to $9.43 billion at March 31, 2012, as well as the yield on our interest-earning assets decreasing 34 basis points to 4.26% for the three months ended March 31, 2013 from 4.60% for the three months ended March 31, 2012. While the yield on our interest earning assets declined due to the lower interest rate environment, our cost of funds also continued to fall resulting in our net interest spread increasing by 5 basis points to 3.23% for the three months ended March 31, 2013 from 3.18% for the three months ended March 31, 2012.

Non-Interest Income

Total non-interest income decreased by $265,000, or 2.6% to $10.1 million for the three months ended March 31, 2013 from $10.4 million for the three months ended March 31, 2012. The decrease is primarily attributed to the gain on the sale of loans decreasing $815,000 to $3.1 million for the three months ended March 31, 2013 as more of the originations from our Mortgage Company were maintained in portfolio versus sold to third parties, as well as a decrease of $565,000 in fees and service charges. These decreases were offset by an increase of $726,000 on gains from securities sold during the quarter and $456,000 in additional income from non-deposit investment products.

Non-Interest Expenses

Total non-interest expenses increased by $1.7 million, or 3.1%, to $56.1 million for the three months ended March 31, 2013 from $54.5 million for the three months ended March 31, 2012. Compensation and fringe benefits increased $3.4 million primarily as a result of the staff additions to support our continued growth including employees from the acquisition of Marathon Bank, a federally chartered bank with 13 full-service branches in the New York metropolitan area which was completed in the fourth quarter of 2012, as well as normal merit increases. Occupancy expenses, professional fees and data processing expenses decreased $904,000, $1.7 million and $1.2 million, respectively, for the three months ended March 31, 2013. The three months ended March 31, 2012 reflects costs of $6.0 million associated with the Brooklyn Federal acquisition. In addition, our FDIC insurance premium increased $1.7 million as the FDIC reclassified Investors Bank as a large institution which increased our assessment rate.

Income Taxes

Income tax expense was $15.1 million for the three months ended March 31, 2013, representing a 35.90% effective tax rate compared to income tax expense of $11.7 million for the three months ended March 31, 2012 representing a 38.19% effective tax rate.

Provision for Loan Losses

Our provision for loan losses was $13.8 million for the three months ended March 31, 2013 compared to $13.0 million for the three months ended March 31, 2012. For the three months ended March 31, 2013, net charge-offs were $6.3 million compared to $6.7 million for the three months ended March 31, 2012. Our provision for the three months ended March 31, 2013 is a result of continued growth in the loan portfolio, specifically the multi-family and commercial real estate portfolios; the inherent credit risk in our overall portfolio, particularly the credit risk associated with commercial real estate lending; the level of non-performing loans and delinquent loans caused by the adverse economic and real estate conditions in our lending area.

Our past due loans and non-accrual loans discussed below exclude certain purchased credit impaired (PCI) loans, primarily consisting of loans recorded in the acquisition of Marathon. Under U.S. GAAP, the PCI loans (acquired at a discount that is due, in part, to credit quality) are not subject to delinquency classification in the same manner as loans originated by Investors. The following table sets forth non-accrual loans and accruing past due loans (excluding PCI loans of $2.6 million) on the dates indicated as well as certain asset quality ratios.

March 31,

2013

December 31,

2012

September 30,

2012

June 30,

2012

March 31,

2012

# of loans

Amount

# of loans

Amount

# of loans

Amount

# of loans

Amount

# of loans

Amount

(Dollars in millions)

Accruing past due loans:

30 to 59 days past due:

Residential and consumer

76

$

20.0

114

$

34.3

71

$

23.6

65

$

16.3

65

$

14.9

Construction

1

0.4

Multi-family

2

4.5

1

0.2

2

3.1

4

4.6

2

16.0

Commercial real estate

1

0.5

6

16.5

1

0.3

1

0.2

2

1.8

Commercial and industrial

2

1.1

3

0.6

Total 30 to 59 days past due

81

$

26.1

124

$

51.6

75

$

27.4

70

$

21.1

69

$

32.7

60 to 89 days past due:

Residential and consumer

36

9.7

45

11.9

43

11.9

40

8.4

25

4.4

Construction

1

0.2

Multi-family

2

0.6

3

4.0

1

1.2

Commercial real estate

1

0.3

4

3.0

Commercial and industrial

4

0.8

2

2.6

1

0.1

3

3.3

1

0.7

Total 60 to 89 days past due

43

11.4

54

21.5

45

13.2

44

11.9

26

5.1

Total accruing past due loans

124

$

37.5

178

$

73.1

120

$

40.6

114

$

33

95

$

37.8

Non-accrual:

Residential and consumer

328

84.1

354

82.5

335

81.2

328

81.7

328

86.1

Construction

9

24.1

9

25.8

9

26.6

15

51.4

16

57.2

Multi-family

7

14.5

5

11.1

6

12.0

6

13.3

4

6.2

Commercial real estate

6

10.2

4

0.8

1

0.8

1

1.2

2

0.4

Commercial and industrial

6

2.8

2

0.4

1

0.1

2

0.8

Total Non-accrual Loans

356

$

135.7

374

$

120.6

352

$

120.7

352

$

148.4

350

$

149.9

Accruing troubled debt
restructured loans

18

$

9.0

22

$

15.8

18

$

14.8

17

$

8.9

15

$

8.4

Non-accrual loans to total loans

1.28

%

1.16

%

1.28

%

1.60

%

1.64

%

Allowance for loan loss as a
percent of non-accrual loans

110.21

%

117.92

%

108.79

%

86.58

%

82.53

%

Allowance for loan losses as a
percent of total loans

1.41

%

1.36

%

1.39

%

1.38

%

1.35

%

Total non-accrual loans decreased $14.2 million to $135.7 million at March 31, 2013 compared to $149.9 million at March 31, 2012 as we continue to diligently resolve our troubled loans. Our allowance for loan loss as a percent of total loans is 1.41%. At March 31, 2013, there were $33.8 million of loans deemed trouble debt restructuring, of which $9.0 million were accruing and $24.8 million were on non-accrual.

The allowance for loan losses increased by $26.1 million to $149.6 million at March 31, 2013 from $123.5 million at March 31, 2012. The increase in our allowance for loan losses is due to the growth of the loan portfolio and the increased credit risk in our overall portfolio, particularly the inherent credit risk associated with commercial real estate lending. Future increases in the allowance for loan losses may be necessary based on the growth and composition of the loan portfolio, the level of loan delinquency and the impact of the deterioration of the real estate and economic environments in our lending area.

Balance Sheet Summary

Total assets increased by $118.2 million, or 0.9%, to $12.84 billion at March 31, 2013 from $12.72 billion at December 31, 2012. This increase was largely the result of net loans, including loans held for sale, increasing $145.0 million to $10.48 billion at March 31, 2013 from $10.34 billion at December 31, 2012 offset by a decrease in cash of $35.4 million to $119.7 million at March 31, 2013 from $155.2 million at December 31, 2012.

Net loans, including loans held for sale, increased by $145.0 million, or 1.4%, to $10.48 billion at March 31, 2013 from $10.34 billion at December 31, 2012. At March 31, 2013, total loans were $10.60 billion and included $4.86 billion in residential loans, $3.10 billion in multi-family loans, $2.01 billion in commercial real estate loans, $230.7 million in construction loans, $228.2 million in consumer and other loans and $174.6 million in commercial and industrial loans. For the three months March 31, 2013, we originated $227.3 million in multi-family loans, $129.6 million in commercial real estate loans, $9.0 million in commercial and industrial loans, $17.7 million in consumer and other loans and $16.0 million in construction loans. This increase in loans reflects our continued focus on generating multi-family and commercial real estate loans, which was partially offset by pay downs and payoffs of loans. The loans we originate and purchase are on properties located primarily in New Jersey and New York.

We originate residential mortgage loans through our mortgage subsidiary, Investors Home Mortgage Co. For the three months ended March 31, 2013, Investors Home Mortgage Co. originated $419.2 million in residential mortgage loans of which $141.6 million were for sale to third party investors and $277.6 million were added to our portfolio. We also purchased mortgage loans from correspondent entities including other banks and mortgage bankers. Our agreements with these correspondent entities require them to originate loans that adhere to our underwriting standards. During the three months March 31, 2013, we purchased loans totaling $202.9 million from these entities.

Securities, in the aggregate, increased by $5.6 million, or 0.4%, to $1.57 billion at March 31, 2013. The increase in the portfolio was primarily due to the purchase of agency issued mortgage backed securities partially offset by sales, normal pay downs or maturities during the three months March 31, 2013.

Deposits increased by $5.5 million from December 31, 2012 or 0.1% to $8.77 billion at March 31, 2013. This was attributed to an increase in core deposits of $86.6 million or 1.5%, partially offset by a $81.1 million decrease in certificates of deposit. Core deposits now represent 67.1% of our total deposit portfolio.

Borrowed funds increased $86.5 million, or 3.2%, to $2.79 billion at March 31, 2013 from $2.71 billion at December 31, 2012 due to the funding of our asset growth.

Stockholders’ equity increased $19.9 million to $1.09 billion at March 31, 2013 from $1.07 billion at December 31, 2012. The increase is primarily attributed to the $27.2 million of net income for the three months ended March 31, 2013 offset by a $2.1 million increase to other comprehensive income. Stockholders’ equity was also impacted by the declaration of a cash dividend of $0.05 per common share that resulted in a decrease of $5.6 million.

About the Company

Investors Bancorp, Inc. is the holding company for Investors Bank, which as of March 31, 2013 operates from its corporate headquarters in Short Hills, New Jersey and 100 offices located throughout northern and central New Jersey and New York.

Earnings Conference Call April 30, 2013 at 11:00 a.m. (ET)

The Company, as previously announced, will host an earnings conference call Tuesday, April 30, 2013 at 11:00 a.m. (ET). The toll-free dial-in number is: (888) 317-6016. Callers who pre-register will bypass the live operator and may avoid any delays in joining the conference call. Participants will immediately receive an online confirmation, an email, and a calendar initiation for the event.

Conference Call Pre-registration link: http://services.choruscall.com/DiamondPassRegistration/register?confirmationNumber=10027052&linkSecurityString=21470791e8

A telephone replay will be available beginning on April 30, 2013 from 1:00 p.m. (ET) through July 31, 2013, 9:00 a.m. (ET). The replay number is (877) 344-7529 password 10027052. The conference call will also be simultaneously webcast on the Company’s website www.myinvestorsbank.com and archived for one year.

Forward Looking Statements

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, as described in our SEC filings, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions, which may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2013 and December 31, 2012

March 31, 2013

December 31, 2012

Assets

(In thousands)

Cash and cash equivalents

$

119,729

155,153

Securities available-for-sale, at estimated fair value

1,412,810

1,385,328

Securities held-to-maturity, net (estimated fair value of
$180,564 and $198,893 at March 31, 2013 and December 31,
2012 respectively)

158,027

179,922

Loans receivable, net

10,463,895

10,306,786

Loans held-for-sale

16,076

28,233

Federal Home Loan Bank stock

149,912

150,501

Accrued interest receivable

44,103

45,144

Other real estate owned

7,625

8,093

Office properties and equipment, net

95,659

91,408

Net deferred tax asset

152,018

150,006

Bank owned life insurance

114,698

113,941

Intangible assets

99,448

99,222

Other assets

6,724

8,837

Total Assets

$

12,840,724

12,722,574

Liabilities and Stockholders’ Equity

Liabilities:

Deposits

$

8,774,316

8,768,857

Borrowed funds

2,792,139

2,705,652

Advance payments by borrowers for taxes and insurance

67,906

52,707

Other liabilities

119,655

128,541

Total liabilities

11,754,016

11,655,757

Stockholders’ equity:

Preferred stock, $0.01 par value, 50,000,000 authorized
shares; none issued

Common stock, $0.01 par value, 200,000,000 shares
authorized; 118,020,280 issued; 111,839,219 and
111,915,882 outstanding at March 31, 2013 and December
31, 2012, respectively

532

532

Additional paid-in capital

535,311

533,858

Retained earnings

666,494

644,923

Treasury stock, at cost; 6,181,061 and 6,104,398 shares at March 31, 2013 and December 31, 2012, respectively

(75,068)

(73,692)

Unallocated common stock held by the employee stock ownership plan

(30,842)

(31,197)

Accumulated other comprehensive loss

(9,719)

(7,607)

Total stockholders’ equity

1,086,708

1,066,817

Total liabilities and stockholders’ equity

$

12,840,724

12,722,574

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

For the Three Months

Ended March 31,

2013

2012

(Dollars in thousands, except per share data)

Interest and dividend income:

Loans receivable and loans held-for-sale

$

119,860

110,252

Securities:

Government-sponsored enterprise obligations

1

7

Mortgage-backed securities

6,577

8,294

Equity securities available-for-sale

4

Municipal bonds and other debt

1,532

1,258

Interest-bearing deposits

10

14

Federal Home Loan Bank stock

1,450

1,391

Total interest and dividend income

129,434

121,216

Interest expense:

Deposits

12,688

18,333

Secured borrowings

14,705

15,152

Total interest expense

27,393

33,485

Net interest income

102,041

87,731

Provision for loan losses

13,750

13,000

Net interest income after provision for loan losses

88,291

74,731

Non-interest income

Fees and service charges

4,401

4,966

Income on bank owned life insurance

757

664

Gain on loan transactions, net

3,074

3,889

Gain (loss) on securities transactions

684

(42)

Loss on sale of other real estate owned, net

(70)

Other income

1,243

877

Total non-interest income

10,089

10,354

Non-interest expense

Compensation and fringe benefits

29,824

26,411

Advertising and promotional expense

1,814

1,513

Office occupancy and equipment expense

9,229

10,133

Federal insurance premiums

3,650

1,950

Stationery, printing, supplies and telephone

587

878

Professional fees

2,732

4,442

Data processing service fees

3,656

4,823

Other operating expenses

4,632

4,304

Total non-interest expenses

56,124

54,454

Income before income tax expense

42,256

30,632

Income tax expense

15,089

11,696

Net income

$

27,167

18,936

Basic and diluted earnings per share

$

0.25

0.18

Weighted average shares outstanding:

Basic

107,499,975

107,257,811

Diluted

108,670,384

107,436,211

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Average Balance Sheet and Yield/Rate Information

For Three Months Ended

March 31, 2013

March 31, 2012

Average
Outstanding
Balance

Interest Earned/Paid

Average Yield/Rate

Average
Outstanding
Balance

Interest Earned/Paid

Average Yield/Rate

(Dollars in thousands)

Interest-earning assets:

Interest-earning cash accounts

$

112,869

10

0.04

%

95,604

14

0.06

%

Securities available-for-sale

1,371,679

5,363

1.56

%

1,157,510

5,891

2.04

%

Securities held-to-maturity

169,374

2,751

6.50

%

268,416

3,668

5.47

%

Net loans

10,364,257

119,860

4.63

%

8,915,992

110,252

4.95

%

Federal Home Loan Bank stock

144,749

1,450

4.01

%

112,759

1,391

4.93

%

Total interest-earning assets

12,162,928

129,434

4.26

%

10,550,281

121,216

4.60

%

Non-interest earning assets

549,764

470,532

Total assets

$

12,712,692

$

11,020,813

Interest-bearing liabilities:

Savings

1,739,465

1,677

0.39

%

1,407,586

1,973

0.56

%

Interest-bearing checking

1,740,042

1,458

0.34

%

1,335,836

1,700

0.51

%

Money market accounts

1,585,992

1,687

0.43

%

1,221,482

2,087

0.68

%

Certificates of deposit

2,927,195

7,866

1.07

%

3,405,240

12,573

1.48

%

Interest bearing deposits

7,992,694

12,688

0.63

%

7,370,144

18,333

0.99

%

Borrowed funds

2,631,414

14,705

2.24

%

2,063,436

15,152

2.94

%

Total interest-bearing liabilities

10,624,108

27,393

1.03

%

9,433,580

33,485

1.42

%

Non-interest bearing liabilities

1,012,314

602,578

Total liabilities

11,636,422

10,036,158

Stockholders’ equity

1,076,270

984,655

Total liabilities and stockholders’ equity

$

12,712,692

$

11,020,813

Net interest income

$

102,041

$

87,731

Net interest rate spread

3.23

%

3.18

%

Net interest earning assets

$

1,538,820

$

1,116,701

Net interest margin

3.36

%

3.33

%

Ratio of interest-earning assets to total interest- bearing liabilities

1.14

X

1.12

X

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Selected Performance Ratios

For the Three Months Ended

March 31,

2013

2012

Return on average assets

0.85

%

0.69

%

Return on average equity

10.10

%

7.69

%

Return on average tangible equity

11.12

%

8.15

%

Interest rate spread

3.23

%

3.18

%

Net interest margin

3.36

%

3.33

%

Efficiency ratio

50.05

%

55.52

%

Non-interest expense to average total assets

1.77

%

1.98

%

Average interest-earning assets to average interest-bearing liabilities

1.14

1.12

INVESTORS BANCORP, INC. AND SUBSIDIARIES

Selected Financial Ratios and Other Data

March 31, 2013

December 31, 2012

Asset Quality Ratios:

Non-performing assets as a percent of total assets

1.19

%

1.14

%

Non-performing loans as a percent of total loans

1.37

%

1.31

%

Allowance for loan losses as a percent of non-accrual loans

110.21

%

117.92

%

Allowance for loan losses as a percent of total loans

1.41

%

1.36

%

Capital Ratios:

Total risk-based capital (to risk weighted assets) (1)

11.36

%

11.24

%

Tier 1 risk-based capital (to risk weighted assets) (1)

10.11

%

9.98

%

Tier 1 leverage (core) capital (to adjusted tangible assets) (1)

7.41

%

7.59

%

Equity to total assets (period end)

8.46

%

8.39

%

Average equity to average assets

8.47

%

8.92

%

Tangible capital (to tangible assets)

7.75

%

7.67

%

Book value per common share

$

9.99

$

9.81

Other Data:

Number of full service offices

100

101

Full time equivalent employees

1,196

1,193

(1) Ratios are for Investors Bank and do not include capital retained at the holding company level.

[…]

Federal Home Loan Bank of Indianapolis Declares Dividend and Reports First Quarter 2013 Financial Results

INDIANAPOLIS, April 29, 2013 (GLOBE NEWSWIRE) — On April 29, 2013, the Board of Directors of the Federal Home Loan Bank of Indianapolis (“FHLBI”) declared dividends on Class B-1 and Class B-2 capital stock at annualized rates of 3.50% and 2.80%, respectively. These dividends will be paid in cash on April 30, 2013.

Net Income for the first quarter of 2013 was $39.4 million. The decrease of $2.0 million compared to the same period in 2012 was primarily due to lower Net Interest Income. However, a net reduction in the allowance for credit losses of $4.75 million, due primarily to an upgrade in the credit rating of one of our mortgage insurance providers, resulted in an increase in Net Interest Income After Provision for Credit Losses of $1.9 million or 3% in the first quarter of 2013, compared to the same period in 2012.

Total Assets at March 31, 2013 were $39.7 billion, a net decrease of $1.5 billion or 4% compared to December 31, 2012. Advances outstanding totaled $18.9 billion. The net increase of 5% compared to December 31, 2012 was attributable to higher Advances to our insurance company members, partially offset by lower Advances to our depository members. Mortgage Loans Held for Portfolio totaled $6.1 billion. The net increase of 2% compared to December 31, 2012 was attributable to participation interests purchased from the Federal Home Loan Bank of Topeka under our Mortgage Partnership Finance(R) Program. Investments totaled $14.5 billion. The net decrease of 14% compared to December 31, 2012 was primarily attributable to a decrease in short-term investments.

Consolidated Obligations at March 31, 2013 totaled $35.4 billion. The net decrease of $978.1 million or 3% compared to December 31, 2012 was attributable to lower funding needs.

Total Capital at March 31, 2013 was $2.3 billion. The increase of $121.5 million or 5% during the first quarter consisted of a net increase in Capital Stock of $43.7 million, a net increase in Retained Earnings of $25.1 million, and a favorable change in Accumulated Other Comprehensive Income (Loss) of $52.6 million, primarily due to an increase in the fair value of OTTI Available-for-Sale securities.

At March 31, 2013, Total Regulatory Capital was $2.5 billion. The decrease of $221.4 million or 8% compared to December 31, 2012 was due to a repurchase of $250 million of excess stock, which was classified as Mandatorily Redeemable Capital Stock. Our regulatory capital-to-assets ratio at March 31, 2013 was 6.2%, which exceeds all applicable regulatory capital requirements.

All amounts referenced above and in the following table are unaudited. More detailed information about our financial results for the three months ended March 31, 2013 will be included in our Quarterly Report on Form 10-Q, which we intend to file in mid-May.

Federal Home Loan Bank of Indianapolis Financial Highlights (unaudited)
($ amounts in millions, as rounded)
Three months ended March 31, Condensed Statements of Income 2013 2012 Net Interest Income After Provision for Credit Losses $ 64 $ 62 Other Income (Loss) (5) (1) Other Expenses 15 15 Total Assessments 5 5 Net Income $ 39 $ 41 Condensed Statements of Condition March 31, 2013 December 31, 2012 Advances $ 18,950 $ 18,130 Mortgage Loans Held for Portfolio, net 6,093 6,001 Investments (1) 14,463 16,845 Other Assets 187 252 Total Assets $ 39,693 $ 41,228

Consolidated Obligations, net $ 35,354 $ 36,332 Mandatorily Redeemable Capital Stock 160 451 Other Liabilities 1,841 2,229 Total Liabilities 37,355 39,012 Capital Stock, Class B Putable 1,678 1,634 Retained Earnings (2) 617 592
Accumulated Other Comprehensive Income (Loss) 43 (10) Total Capital 2,338 2,216 Total Liabilities and Capital $ 39,693 $ 41,228

Total Regulatory Capital (3) $ 2,455 $ 2,677

(1) Includes Held-to-Maturity Securities, Available-for-Sale Securities, Interest-Bearing Deposits, Securities Purchased Under Agreements to Resell, and Federal Funds Sold. (2) Includes Restricted Retained Earnings of $50 million and $42 million at March 31, 2013 and December 31, 2012, respectively. (3) Consists of Total Capital plus Mandatorily Redeemable Capital Stock less Accumulated Other Comprehensive Income (Loss).

Safe Harbor Statement

This document may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 concerning plans, objectives, goals, strategies, future events or performance. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” or the negative of these terms or comparable terminology. Any forward-looking statement contained in this document reflects our current beliefs and expectations. Actual results or performance may differ materially from what is expressed in any forward-looking statements.

Any forward-looking statement contained in this document speaks only as of the date on which it was made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are referred to the documents filed by us with the U.S. Securities and Exchange Commission, specifically reports on Form 10-K and Form 10-Q, which include factors that could cause actual results to differ from forward-looking statements. These reports are available at www.sec.gov.

Building Partnerships. Serving Communities.

The Federal Home Loan Bank of Indianapolis (FHLBI) is one of 12 regional banks that make up the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. The FHLBI is owned by its Indiana and Michigan financial institution members, which include commercial banks, credit unions, insurance companies, and savings banks. For more information about the FHLBI, visit www.fhlbi.com.

Contact:

Jeffrey A. Sanders
Corporate Communications & Planning Director
317.465.0529
jsanders@fhlbi.com

[…]