THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Investors Bancorp, Inc. (ISBC)

8/19/2005 424B3 Information

Loans and Extensions of Credit. The Sarbanes-Oxley Act of 2002 generally prohibits companies from making loans to their executive officers and directors, but it contains a specific exemption from such prohibition for loans made by insured depository institutions, such as Investors Savings Bank, to their executive officers and directors in compliance with federal banking regulations. Federal regulations require that all loans or extensions of credit to executive officers and directors of insured institutions must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and must not involve more than the normal risk of repayment or present other unfavorable features. Investors Savings Bank is therefore prohibited from making any loans or extensions of credit to executive officers and directors at different rates or terms than those offered to the general public, except for loans made under a benefit program generally available to all other employees and that does not give preference to any executive officer or director over any other employee.

In addition, loans made to a director or executive officer must be approved in advance by a majority of the disinterested members of the Board of Directors. The aggregate amount of our loans to our officers and directors was $603,243 at March 31, 2005. These loans were performing according to their original terms at March 31, 2005.

Other Transactions. During the year ended June 30, 2004, the law firm of Herrigel, Bolan & Manahan, LLP received fees of $536,000 for services rendered on behalf of Investors Savings Bank, including fees paid by borrowers in connection with loan closings. Director Vincent D. Manahan III is a partner of the law firm.

During the year ended June 30, 2004, $84,000 in commissions were paid by Investors Bancorp, Inc. or Investors Savings Bank to Absolute Resource Solutions, LLC, a licensed insurance agency for insurance products purchased by Investors Bancorp, Inc. or Investors Savings Bank. Director John Kirkpatrick is the father of a managing director of that agency.