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Exhibit 99

 

LOGO

Meridian Interstate Bancorp, Inc. Reports Net Income for the Second Quarter

and Six Months Ended June 30, 2013

Contact: Richard J. Gavegnano, Chairman and Chief Executive Officer

(978) 977-2211

Boston, Massachusetts (July 23, 2013): Meridian Interstate Bancorp, Inc. (the “Company” or “Meridian”) (NASDAQ: EBSB), the holding company for East Boston Savings Bank (the “Bank”), which also operates under the name Mt. Washington Bank, a Division of East Boston Savings Bank (“Mt. Washington”), announced net income of $3.0 million, or $0.14 per diluted share, for the quarter ended June 30, 2013 compared to $5.4 million, or $0.25 per diluted share, for the quarter ended June 30, 2012. For the six months ended June 30, 2013, net income was $6.1 million, or $0.28 per diluted share compared to $7.6 million, or $0.35 per diluted share, for the six months ended June 30, 2012. The Company’s return on average assets was 0.50% for the quarter ended June 30, 2013 compared to 1.07% for the quarter ended June 30, 2012. For the six months ended June 30, 2013, the Company’s return on average assets was 0.51% compared to 0.75% for the six months ended June 30, 2012. The Company’s return on average equity was 5.03% for the quarter ended June 30, 2013 compared to 9.65% for the quarter ended June 30, 2012. For the six months ended June 30, 2013, the Company’s return on average equity was 5.12% compared to 6.74% for the six months ended June 30, 2012.

During the second quarter of 2012, the Company recognized a pre-tax gain of $4.8 million on the sale of its investment in Hampshire First Bank, which was 43% owned by the Company, to NBT Bancorp, Inc. (NASDAQ: NBTB) and NBT Bank, N.A. On an after-tax basis, this one-time gain increased net income by $2.9 million, or $0.13 per diluted share, for the quarter and six months ended June 30, 2012.

Richard J. Gavegnano, Chairman and Chief Executive Officer, said, “I am pleased to report net income of $3.0 million, or $0.14 per share, for the second quarter and $6.1 million, or $0.28 per share, for the first half of 2013. We achieved several key milestones during the quarter as we celebrated the 165th anniversary of East Boston Savings Bank. Our total assets rose to $2.5 billion during the quarter as total loans and deposits each grew to over $2 billion. In the first half of 2013, net loan growth was $219 million, or 12%, along with net deposit growth of $197 million, or 11%. Our strategic focus has resulted in significant growth from lucrative new markets in the Boston area that increases the retail traction of our banking products and services, especially loans and checking accounts. Following our entrance into the Belmont and Allston markets earlier this year, we expect our market share and franchise value will be further enhanced by the opening of our 27th full service location in Somerville during the fourth quarter.”

Net interest income increased $1.9 million, or 11.7%, to $18.3 million for the quarter ended June 30, 2013 from $16.4 million for the quarter ended June 30, 2012. The net interest rate spread and net interest margin were 3.08% and 3.24%, respectively, for the quarter ended June 30, 2013 compared to 3.37% and 3.53%, respectively, for the quarter ended June 30, 2012. For the six months ended June 30, 2013, net interest income increased $3.7 million, or 11.5%, to $35.9 million from $32.2 million for the six months ended June 30, 2012. The net interest rate spread and net interest margin were 3.13% and 3.28%, respectively, for the six months ended June 30, 2013 compared to 3.33% and 3.50%, respectively, for the six months ended June 30, 2012. The increases in net interest income were due primarily to loan growth along with declines in the cost of funds, partially offset by declines in yields on interest-earning assets for the second quarter and six months ended June 30, 2013 compared to the same periods in 2012.

The average balance of the Company’s loan portfolio increased $439.8 million, or 29.4%, to $1.938 billion, which was partially offset by the decline in the yield on loans of 51 basis points to 4.56% for the quarter ended June 30, 2013 compared to the quarter ended June 30, 2012. The Company’s cost of total deposits declined nine basis points to 0.83%, which was partially offset by the increase in the average balance of total deposits of $334.7 million, or 20.1%, to $1.997 billion for the quarter ended June 30, 2013 compared to the quarter ended June 30, 2012. The Company’s yield on interest-earning assets declined 40 basis points to 4.09% for the quarter ended June 30, 2013 compared to 4.49% for the quarter ended June 30, 2012, while the cost of funds declined 11 basis points to 0.91% for the quarter ended June 30, 2013 compared to 1.02% for the quarter ended June 30, 2012.


Mr. Gavegnano noted, “The tremendous growth of $468 million, or 30%, in our loan portfolio and $290 million, or 27%, in core deposits since June of last year contributed to our eighth consecutive quarter of rising net interest income. This growth has also been a factor in limiting the decline in our net interest margin despite falling loan yields.”

The Company’s provision for loan losses was $3.2 million for the quarter ended June 30, 2013 compared to $2.2 million for the quarter ended June 30, 2012. For the six months ended June 30, 2013, the provision for loan losses was $4.5 million compared to $3.4 million for the six months ended June 30, 2012. The increases in the provision for loan losses were primarily due to growth in the commercial real estate, construction and commercial business loan categories for the second quarter and six months ended June 30, 2013 compared to the same periods in 2012. In addition, the provision for loan losses was based on management’s assessment of loan portfolio growth and composition changes, an ongoing evaluation of credit quality and current economic conditions. The allowance for loan losses was $23.5 million or 1.16% of total loans outstanding at June 30, 2013, compared to $20.5 million or 1.13% of total loans outstanding at December 31, 2012. Net loan charge-offs totaled $652,000 for the quarter ended June 30, 2013, or 0.13% of average loans outstanding, and $1.5 million for the six months ended June 30, 2013, or 0.16% of average loans outstanding.

Non-performing loans increased $5.7 million, or 14.5%, to $45.3 million, or 2.23% of total loans outstanding, at June 30, 2013, from $39.6 million, or 2.19% of total loans outstanding, at December 31, 2012, primarily due to a net increase of $7.6 million in non-performing construction loans. Non-performing assets increased $4.9 million, or 11.7%, to $47.1 million, or 1.88% of total assets, at June 30, 2013, from $42.2 million, or 1.85% of total assets, at December 31, 2012. Non-performing assets at June 30, 2013 were comprised of $15.4 million of construction loans, $8.0 million of commercial real estate loans, $18.2 million of one- to four-family mortgage loans, $595,000 of multi-family mortgage loans, $2.6 million of home equity loans, $511,000 of commercial business loans and foreclosed real estate of $1.8 million. Non-performing assets at June 30, 2013 included $17.0 million of assets acquired in the January 2010 Mt. Washington Co-operative Bank merger, comprised of $16.7 million of non-performing loans and $320,000 of foreclosed real estate.

Non-interest income decreased $3.9 million, or 45.5%, to $4.7 million for the quarter ended June 30, 2013 from $8.7 million for the quarter ended June 30, 2012, primarily due to the $4.8 million gain on sale of the Hampshire First Bank affiliate recognized in second quarter of 2012, partially offset by an increase of $869,000 in gain on sales of securities, net. For the six months ended June 30, 2013, non-interest income decreased $3.5 million, or 27.7%, to $9.1 million from $12.6 million for the six months ended June 30, 2012, primarily due to the prior year $4.8 million gain on sale of the Hampshire First Bank affiliate and a decrease of $604,000 in mortgage banking gains, net, partially offset by an increase of $2.1 million in gain on sales of securities, net.

Non-interest expenses increased $796,000, or 5.4%, to $15.6 million for the quarter ended June 30, 2013 from $14.8 million for the quarter ended June 30, 2012, primarily due to increases of $834,000 in salaries and employee benefits, $222,000 in data processing and $162,000 in marketing and advertising, partially offset by decreases of $333,000 in professional services and $182,000 in other non-interest expenses. For the six months ended June 30, 2013, non-interest expenses increased $1.8 million, or 6.1%, to $31.9 million from $30.1 million for the six months ended June 30, 2012, primarily due to increases of $1.6 million in salaries and employee benefits, $325,000 in occupancy and equipment, $381,000 in data processing and $294,000 in marketing and advertising, partially offset by decreases of $565,000 in professional services, $94,000 in foreclosed real estate and $253,000 in other non-interest expenses. The increases in salaries and employee benefits and occupancy and equipment expenses were primarily associated with the opening of new branches and costs associated with the expansion of residential and commercial lending capacity. The Company’s efficiency ratio was 74.58% for the quarter ended June 30, 2013 compared to 77.98% for the quarter ended June 30, 2012, excluding the gain on sale of the Hampshire First Bank affiliate. For the six months ended June 30, 2013, the efficiency ratio was 78.49% compared to 79.88% for the six months ended June 30, 2012, excluding the gain on sale of the Hampshire First Bank affiliate.

Mr. Gavegnano added, “After rising to 82.64% for the first quarter of 2013, our efficiency ratio declined to 74.58% for the second quarter due to continued growth in net interest income and a more moderate increase in non-interest expenses. We expect additional improvements in efficiency as we continue to grow into our expanded lending and core deposit funding capacity along with diligently monitoring our overhead expenses.”

The Company recorded a provision for income taxes of $1.2 million for the quarter ended June 30, 2013, reflecting an effective tax rate of 28.4%, compared to $2.6 million, or 32.6%, for the quarter ended June 30, 2012. For the six

 

2


months ended June 30, 2013, the provision for income taxes was $2.6 million, reflecting an effective tax rate of 29.6%, compared to $3.7 million, or 32.7%, for the six months ended June 30, 2012. The change in the effective tax rate was primarily due to changes in the components of pre-tax income.

Total assets increased $229.7 million, or 10.1%, to $2.508 billion at June 30, 2013 from $2.279 billion at December 31, 2012. Net loans increased $219.2 million, or 12.3%, to $2.006 billion at June 30, 2013 from $1.786 billion at December 31, 2012. The net increase in loans for the six months ended June 30, 2013 was primarily due to increases of $151.4 million in commercial real estate loans, $59.3 million in construction loans and $30.6 million in commercial business loans. Cash and cash equivalents increased $50.3 million, or 54.0%, to $143.5 million at June 30, 2013 from $93.2 million at December 31, 2012. Securities available for sale decreased $40.8 million, or 15.5%, to $222.0 million at June 30, 2013 from $262.8 million at December 31, 2012.

Total deposits increased $196.6 million, or 10.5%, to $2.062 billion at June 30, 2013 from $1.865 billion at December 31, 2012, including net growth in core deposits of $132.2 million, or 10.7%, to $1.369 billion, or 66.4% of total deposits. Total borrowings increased $27.3 million, or 16.9%, to $188.6 million at June 30, 2013 from $161.3 million at December 31, 2012.

Total stockholders’ equity increased $5.0 million, or 2.1%, to $238.9 million at June 30, 2013, from $233.9 million at December 31, 2012. The increase for the six months ended June 30, 2013 was due primarily to $6.1 million in net income, partially offset by a decrease of $1.1 million in accumulated other comprehensive income reflecting a decrease in the fair value of available for sale securities, net of tax and a $1.0 million increase in treasury stock resulting from the Company’s repurchase of 60,786 shares. Stockholders’ equity to assets was 9.52% at June 30, 2013, compared to 10.27% at December 31, 2012. Book value per share increased to $10.81 at June 30, 2013 from $10.57 at December 31, 2012. Tangible book value per share increased to $10.19 at June 30, 2013 from $9.95 at December 31, 2012. Market price per share increased $2.05, or 12.2%, to $18.83 at June 30, 2013 from $16.78 at December 31, 2012. At June 30, 2013, the Company and the Bank continued to exceed all regulatory capital requirements.

As of June 30, 2013, the Company had repurchased 257,352 shares of its stock at an average price of $14.10 per share, or 28.5% of the 904,224 shares authorized for repurchase under the Company’s fourth repurchase program as adopted during 2011. The Company has repurchased 1,661,280 shares at an average price of $10.73 per share since December 2008.

Mr. Gavegnano concluded, “The Company and East Boston Savings Bank will continue to build on our solid record over the past 165 years as we consider various opportunities to enhance stockholder value.”

Meridian Interstate Bancorp, Inc. is the holding company for East Boston Savings Bank. East Boston Savings Bank, a Massachusetts-chartered stock savings bank founded in 1848, operates 26 full service locations in the greater Boston metropolitan area including nine full-service locations in its Mt. Washington Bank Division. We offer a variety of deposit and loan products to individuals and businesses located in our primary market, which consists of Essex, Middlesex and Suffolk Counties, Massachusetts. For additional information, visit www.ebsb.com.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of Meridian Interstate Bancorp, Inc.’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations, and competition and the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Meridian Interstate Bancorp, Inc.’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.

 

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MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

     June 30,
2013
    December 31,
2012
 
     (Dollars in thousands)  
ASSETS   

Cash and due from banks

   $ 143,441      $ 93,129   

Federal funds sold

     63        63   
  

 

 

   

 

 

 

Total cash and cash equivalents

     143,504        93,192   

Securities available for sale, at fair value

     221,996        262,785   

Federal Home Loan Bank stock, at cost

     11,907        12,064   

Loans held for sale

     10,188        14,502   

Loans

     2,029,032        1,806,843   

Less allowance for loan losses

     (23,450     (20,504
  

 

 

   

 

 

 

Loans, net

     2,005,582        1,786,339   

Bank-owned life insurance

     36,838        36,251   

Foreclosed real estate, net

     1,790        2,604   

Premises and equipment, net

     39,688        38,719   

Accrued interest receivable

     6,839        6,745   

Deferred tax asset, net

     10,463        9,710   

Goodwill

     13,687        13,687   

Other assets

     5,952        2,173   
  

 

 

   

 

 

 

Total assets

   $ 2,508,434      $ 2,278,771   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Deposits:

    

Non interest-bearing

   $ 228,705      $ 204,079   

Interest-bearing

     1,833,364        1,661,354   
  

 

 

   

 

 

 

Total deposits

     2,062,069        1,865,433   

Long-term debt

     188,576        161,254   

Accrued expenses and other liabilities

     18,892        18,141   
  

 

 

   

 

 

 

Total liabilities

     2,269,537        2,044,828   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock, no par value, 50,000,000 shares authorized; 23,000,000 shares issued

     —          —     

Additional paid-in capital

     98,770        98,338   

Retained earnings

     153,052        146,959   

Accumulated other comprehensive income

     3,838        4,915   

Treasury stock, at cost, 714,114 and 660,800 shares at June 30, 2013 and December 31, 2012, respectively

     (9,336     (8,331

Unearned compensation—ESOP, 600,300 and 621,000 shares at June 30, 2013 and December 31, 2012, respectively

     (6,003     (6,210

Unearned compensation—restricted shares, 195,190 and 203,345 at June 30, 2013 and December 31, 2012, respectively

     (1,424     (1,728
  

 

 

   

 

 

 

Total stockholders’ equity

     238,897        233,943   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,508,434      $ 2,278,771   
  

 

 

   

 

 

 

 

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MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Net Income

(Unaudited)

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2013      2012      2013      2012  
     (Dollars in thousands, except per share amounts)  

Interest and dividend income:

           

Interest and fees on loans

   $ 21,730       $ 18,565       $ 42,524       $ 36,553   

Interest on debt securities

     1,060         2,006         2,269         4,204   

Dividends on equity securities

     364         292         713         653   

Interest on certificates of deposit

     —           9         —           18   

Other interest and dividend income

     101         96         165         177   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest and dividend income

     23,255         20,968         45,671         41,605   
  

 

 

    

 

 

    

 

 

    

 

 

 

Interest expense:

           

Interest on deposits

     4,141         3,817         8,089         7,820   

Interest on borrowings

     795         756         1,637         1,539   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     4,936         4,573         9,726         9,359   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     18,319         16,395         35,945         32,246   

Provision for loan losses

     3,219         2,170         4,479         3,434   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income, after provision for loan losses

     15,100         14,225         31,466         28,812   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-interest income:

           

Customer service fees

     1,776         1,505         3,362         3,084   

Loan fees

     108         177         164         239   

Mortgage banking gains, net

     403         537         558         1,162   

Gain on sales of securities, net

     2,128         1,259         4,401         2,342   

Income from bank-owned life insurance

     296         295         587         596   

Equity income on investment in affiliate bank

     —           67         —           310   

Gain on sale of investment in affiliate bank

     —           4,819         —           4,819   

Other income

     9         1         9         1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-interest income

     4,720         8,660         9,081         12,553   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-interest expenses:

           

Salaries and employee benefits

     9,476         8,642         19,551         17,943   

Occupancy and equipment

     2,086         2,058         4,420         4,095   

Data processing

     1,079         857         2,070         1,689   

Marketing and advertising

     812         650         1,503         1,209   

Professional services

     537         870         1,138         1,703   

Foreclosed real estate

     86         103         192         286   

Deposit insurance

     522         440         997         871   

Other general and administrative

     997         1,179         2,016         2,269   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-interest expenses

     15,595         14,799         31,887         30,065   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     4,225         8,086         8,660         11,300   

Provision for income taxes

     1,200         2,639         2,567         3,697   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 3,025       $ 5,447       $ 6,093       $ 7,603   
  

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share:

           

Basic

   $ 0.14       $ 0.25       $ 0.28       $ 0.35   

Diluted

   $ 0.14       $ 0.25       $ 0.28       $ 0.35   

Weighted average shares:

           

Basic

     21,649,423         21,630,660         21,644,052         21,647,237   

Diluted

     21,962,628         21,808,507         21,957,397         21,818,079   

 

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MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES

Net Interest Income Analysis

(Unaudited)

 

     For the Three Months Ended June 30,  
     2013     2012  
     Average
Balance
     Interest (1)     Yield/
Cost (6)
    Average
Balance
     Interest (1)     Yield/
Cost (6)
 
     (Dollars in thousands)  

Assets:

              

Interest-earning assets:

              

Loans (2)

   $ 1,937,574       $ 22,035        4.56   $ 1,497,772       $ 18,893        5.07

Securities and certificates of deposits

     232,794         1,584        2.73        314,363         2,441        3.12   

Other interest-earning assets (3)

     154,113         101        0.26        106,994         96        0.36   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-earning assets

     2,324,481         23,720        4.09        1,919,129         21,430        4.49   
     

 

 

        

 

 

   

Noninterest-earning assets

     116,638             124,549        
  

 

 

        

 

 

      

Total assets

   $ 2,441,119           $ 2,043,678        
  

 

 

        

 

 

      

Liabilities and stockholders’ equity:

              

Interest-bearing liabilities:

              

NOW deposits

   $ 177,170         228        0.52      $ 145,731         162        0.45   

Money market deposits

     660,024         1,489        0.90        502,438         1,058        0.85   

Regular and other deposits

     252,868         166        0.26        230,532         221        0.39   

Certificates of deposit

     686,854         2,258        1.32        620,740         2,376        1.54   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-bearing deposits

     1,776,916         4,141        0.93        1,499,441         3,817        1.02   

Borrowings

     187,082         795        1.70        140,651         756        2.16   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-bearing liabilities

     1,963,998         4,936        1.01        1,640,092         4,573        1.12   
     

 

 

        

 

 

   

Noninterest-bearing demand deposits

     219,757             162,520        

Other noninterest-bearing liabilities

     16,889             15,268        
  

 

 

        

 

 

      

Total liabilities

     2,200,644             1,817,880        

Total stockholders’ equity

     240,475             225,798        
  

 

 

        

 

 

      

Total liabilities and stockholders' equity

   $ 2,441,119           $ 2,043,678        
  

 

 

        

 

 

      

Net interest-earning assets

   $ 360,483           $ 279,037        
  

 

 

        

 

 

      

Fully tax-equivalent net interest income

        18,784             16,857     

Less: tax-equivalent adjustments

        (465          (462  
     

 

 

        

 

 

   

Net interest income

      $ 18,319           $ 16,395     
     

 

 

        

 

 

   

Interest rate spread (4)

          3.08          3.37

Net interest margin (5)

          3.24          3.53

Average interest-earning assets to average interest-bearing liabilities

        118.35          117.01  

Supplemental Information:

              

Total deposits, including noninterest-bearing demand deposits

   $ 1,996,673       $ 4,141        0.83   $ 1,661,961       $ 3,817        0.92

Total deposits and borrowings, including noninterest-bearing demand deposits

   $ 2,183,755       $ 4,936        0.91   $ 1,802,612       $ 4,573        1.02

 

 

(1) Total adjustments to present tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans on a tax-equivalent basis.

 

(2) Loans on non-accrual status are included in average balances.

 

(3) Includes Federal Home Loan Bank stock and associated dividends.

 

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

 

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.

 

(6) Annualized.

 

 

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MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES

Net Interest Income Analysis

(Unaudited)

 

     For the Six Months Ended June 30,  
     2013     2012  
     Average
Balance
     Interest (1)     Yield/
Cost (6)
    Average
Balance
     Interest (1)     Yield/
Cost (6)
 
     (Dollars in thousands)  

Assets:

              

Interest-earning assets:

              

Loans (2)

   $ 1,883,894       $ 43,085        4.61   $ 1,443,848       $ 36,881        5.14

Securities and certificates of deposits

     242,655         3,297        2.74        319,031         5,168        3.26   

Other interest-earning assets (3)

     135,247         165        0.25        127,976         177        0.28   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-earning assets

     2,261,796         46,547        4.15        1,890,855         42,226        4.49   
     

 

 

        

 

 

   

Noninterest-earning assets

     119,128             128,023        
  

 

 

        

 

 

      

Total assets

   $ 2,380,924           $ 2,018,878        
  

 

 

        

 

 

      

Liabilities and stockholders’ equity:

              

Interest-bearing liabilities:

              

NOW deposits

   $ 176,455         459        0.52      $ 143,705         326        0.46   

Money market deposits

     638,532         2,844        0.90        481,276         2,018        0.84   

Regular and other deposits

     249,878         327        0.26        224,466         430        0.39   

Certificates of deposit

     667,973         4,459        1.35        632,120         5,046        1.61   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-bearing deposits

     1,732,838         8,089        0.94        1,481,567         7,820        1.06   

Borrowings

     182,071         1,637        1.81        137,640         1,539        2.25   
  

 

 

    

 

 

     

 

 

    

 

 

   

Total interest-bearing liabilities

     1,914,909         9,726        1.02        1,619,207         9,359        1.16   
     

 

 

        

 

 

   

Noninterest-bearing demand deposits

     210,014             158,064        

Other noninterest-bearing liabilities

     17,821             16,109        
  

 

 

        

 

 

      

Total liabilities

     2,142,744             1,793,380        

Total stockholders’ equity

     238,180             225,498        
  

 

 

        

 

 

      

Total liabilities and stockholders' equity

   $ 2,380,924           $ 2,018,878        
  

 

 

        

 

 

      

Net interest-earning assets

   $ 346,887           $ 271,648        
  

 

 

        

 

 

      

Fully tax-equivalent net interest income

        36,821             32,867     

Less: tax-equivalent adjustments

        (876          (621  
     

 

 

        

 

 

   

Net interest income

      $ 35,945           $ 32,246     
     

 

 

        

 

 

   

Interest rate spread (4)

          3.13          3.33

Net interest margin (5)

          3.28          3.50

Average interest-earning assets to average interest-bearing liabilities

        118.12          116.78  

Supplemental Information:

              

Total deposits, including noninterest-bearing demand deposits

   $ 1,942,852       $ 8,089        0.84   $ 1,639,631       $ 7,820        0.96

Total deposits and borrowings, including noninterest-bearing demand deposits

   $ 2,124,923       $ 9,726        0.92   $ 1,777,271       $ 9,359        1.06

 

 

(1) Total adjustments to present tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans on a tax-equivalent basis.

 

(2) Loans on non-accrual status are included in average balances.

 

(3) Includes Federal Home Loan Bank stock and associated dividends.

 

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

 

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.

 

(6) Annualized.

 

7


MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES

Selected Financial Highlights

(Unaudited)

 

     At or For the Three Months Ended
June 30,
    At or For the Six Months Ended
June 30,
 
             2013                     2012                     2013                     2012          

Key Performance Ratios

        

Return on average assets (1)

     0.50     1.07     0.51     0.75

Return on average equity (1)

     5.03        9.65        5.12        6.74   

Stockholders' equity to total assets

     9.52        10.89        9.52        10.89   

Interest rate spread (1) (2)

     3.08        3.37        3.13        3.33   

Net interest margin (1) (3)

     3.24        3.53        3.28        3.50   

Non-interest expense to average assets (1)

     2.56        2.90        2.68        2.98   

Efficiency ratio (4)

     74.58        77.98        78.49        79.88   

 

     June 30,
2013
    December 31,
2012
    June 30,
2012
 

Asset Quality Ratios

      

Allowance for loan losses/total loans

     1.16     1.13     1.05

Allowance for loan losses/non-performing loans

     51.75        51.81        40.24   

Non-performing loans/total loans

     2.23        2.19        2.60   

Non-performing loans/total assets

     1.81        1.74        1.93   

Non-performing assets/total assets

     1.88        1.85        2.07   

Share Related

      

Book value per share

   $ 10.81      $ 10.57      $ 10.36   

Tangible book value per share

   $ 10.19      $ 9.95      $ 9.74   

Market value per share

   $ 18.83      $ 16.78      $ 13.92   

Shares outstanding

     22,090,696        22,135,855        22,073,326   

 

 

(1) Annualized.

 

(2) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

 

(3) Net interest margin represents net interest income divided by average interest-earning assets.

 

(4) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income excluding gains or losses on securities and gain on sale of investment in affiliate bank.

 

 

 

8