BOSTON, Jan. 31, 2011 (GLOBE NEWSWIRE) -- Meridian Interstate Bancorp, Inc. (the "Company" or "Meridian") (Nasdaq:EBSB), the holding company for East Boston Savings Bank (the "Bank"), announced net income of $4.3 million, or $0.20 per share (basic and diluted), for the quarter ended December 31, 2010 compared to $2.0 million or $.09 per share (basic and diluted), for the quarter ended December 31, 2009. For the year ended December 31, 2010, net income was $13.4 million, or $0.61 per share (basic and diluted) compared to net income of $3.8 million, or $0.17 per share (basic and diluted), for the year ended December 31, 2009. The quarter and year ended December 31, 2010 reflects combined results following the acquisition of Mt. Washington Cooperative Bank ("Mt. Washington") on January 4, 2010.
During the quarter ended December 31, 2010, the Company realized a $386,000 reduction of the costs of $3.1 million recorded in the quarter ended September 30, 2010 related to termination of the contract with Mt. Washington's data processing services provider in October 2010. The resulting pre-tax charge was $2.7 million with the after tax impact reducing net income by $1.6 million, or $0.07 per share (basic and diluted), for the year ended December 31, 2010.
Richard J. Gavegnano, Chairman and Chief Executive Officer, noted, "We are extremely proud to report net income of $4.3 million, or $0.20 per share, for the fourth quarter and $13.4 million, or $0.61 per share, for the full year of 2010. These results show that we have been able to maintain high net interest margins in the current low rate environment while meeting a growing demand for our loan and deposit products. We expanded our Boston area franchise with two new branches this month, a Mt. Washington branch in the West Roxbury section of Boston and a second East Boston Savings Bank branch in the City of Revere. A third new branch is set to open mid-year in Boston's South End. With increasing signs that the economic climate of our market areas will continue to stabilize and improve in 2011, we believe the Bank is well positioned to take advantage of various opportunities to enhance shareholder value, increase our market share and grow the Bank. These opportunities may include additional stock repurchases and the evaluation of potential mergers, strategic alliances and partnerships."
Net interest income increased $4.3 million, or 40.8%, to $15.0 million for the quarter ended December 31, 2010 from $10.6 million for the quarter ended December 31, 2009. The net interest rate spread and net interest margin were 3.34% and 3.52%, respectively, for the quarter ended December 31, 2010 compared to 3.41% and 3.73%, respectively, for the quarter ended December 31, 2009. For the year ended December 31, 2010, net interest income increased $24.7 million, or 68.2%, to $61.0 million from $36.3 million for the year ended December 31, 2009. The net interest rate spread and net interest margin were 3.62% and 3.80%, respectively, for the year ended December 31, 2010 compared to 2.95% and 3.34%, respectively, for the year ended December 31, 2009. The increases in net interest income were due primarily to the Mt. Washington merger and organic loan growth, along with declines in interest costs of deposits and borrowings.
The average balance of the Company's loan portfolio, which is principally comprised of real estate loans, increased $416.5 million, or 54.2%, to $1.2 billion, which was partially offset by the decline in the yield on loans of 17 basis points to 5.69% for the year ended December 31, 2010 compared to the year ended December 31, 2009. The Company's cost of deposits declined 82 basis points to 1.39%, which was partially offset by the increase in the average balance of interest-bearing deposits of $421.8 million, or 50.6%, to $1.3 billion for the year ended December 31, 2010 compared to the year ended December 31, 2009. The Company's yield on interest-earning assets decreased 11 basis points to 5.11% for the year ended December 31, 2010 compared to 5.22% for the year ended December 31, 2009, while the cost of interest-bearing liabilities declined 78 basis points to 1.49% for the year ended December 31, 2010 compared to 2.27% for the year ended December 31, 2009.
The Company's provision for loan losses was $936,000 for the quarter ended December 31, 2010 compared to $2.3 million for the quarter ended December 31, 2009. For the year ended December 31, 2010, the provision for loan losses was $3.2 million compared to $4.1 million for the year ended December 31, 2009. These changes were based primarily 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 $10.2 million or 0.86% of total loans outstanding at December 31, 2010, compared to $9.2 million, or 1.12% of total loans outstanding at December 31, 2009. The decrease in the ratio of the allowance for loan losses to total loans outstanding was primarily due to $345.3 million of loans acquired in the Mt. Washington merger at fair value and the application of current accounting guidance that precludes the combination of allowance for loan loss amounts associated with such loans acquired.
Non-performing loans increased to $43.1 million, or 3.64% of total loans outstanding at December 31, 2010, from $21.7 million, or 2.63% of total loans outstanding at December 31, 2009. Non-performing assets increased to $47.2 million, or 2.57% of total assets, at December 31, 2010, from $24.6 million, or 2.03% of total assets, at December 31, 2009, primarily due to assets acquired in the Mt. Washington acquisition. Non-performing assets at December 31, 2010 were comprised of $15.4 million of construction loans, $11.5 million of commercial real estate loans, $11.5 million of one-to four-family mortgage loans, $2.2 million of multi-family mortgage loans, $2.4 million of home equity loans, $169,000 of commercial business loans and foreclosed real estate of $4.1 million. Non-performing assets at December 31, 2010 included $16.8 million acquired in the Mt. Washington merger, comprised of $14.7 million of non-performing loans and $2.1 million of foreclosed real estate.
Non-interest income increased $1.6 million, or 78.0%, to $3.7 million for the quarter ended December 31, 2010 from $2.1 million for the quarter ended December 31, 2009, primarily due to increases of $873,000 in gain on sales of securities, $602,000 in gain on sales of loans and $467,000 in customer service fees. For the year ended December 31, 2010, non-interest income increased $6.4 million, or 121.4%, to $11.7 million from $5.3 million for the year ended December 31, 2009, primarily due to increases of $2.6 million in customer service fees, $1.9 million in gain on sales of securities, $1.3 million in gain on sales of loans and $429,000 from other-than-temporary impairment losses recorded in the prior year. The increases in customer service fees were primarily due to service charges on deposit relationships acquired in the Mt. Washington merger and additional growth in deposits. The increases in gain on sales of securities reflected sales totaling $4.7 million during the quarter ended December 31, 2010 of certain securities acquired in the Mt. Washington merger for a net gain of $953,000 and sales totaling $6.6 million during the year ended December 31, 2010 of other securities for a net gain of $485,000. The increases in gain on sales of loans reflected higher gains on sales of loans originated for sale during the year ended December 31, 2010 and gains totaling $352,000 on sales of fixed-rate bi-weekly mortgage loans during the first quarter of 2010.
Non-interest expense increased $4.0 million, or 57.3%, to $11.1 million for the quarter ended December 31, 2010 from $7.0 million for the quarter ended December 31, 2009, primarily due to increases of $484,000 in recurring data processing costs, $1.9 million in salaries and employee benefits and $697,000 in occupancy and equipment expenses. For the year ended December 31, 2010, non-interest expense increased $17.2 million, or 54.6%, to $48.8 million from $31.6 million for the year ended December 31, 2009, primarily due to the $2.7 million charge related to termination of the contract with Mt. Washington's data processing services provider and increases of $1.4 million in recurring data processing costs, $7.0 million in salaries and employee benefits, $2.6 million in occupancy and equipment expenses, $727,000 in marketing and advertising, $446,000 in professional services and $1.9 million in other general and administrative expenses. The increases in non-interest expenses were primarily due to higher expense levels following the Mt. Washington merger. The Company's efficiency ratio was 64.92% for the quarter ended December 31, 2010, excluding the reduction to the charge to terminate Mt. Washington's data processing contract and securities gains, compared to 55.98% for the quarter ended December 31, 2009. For the year ended December 31, 2010, the efficiency ratio improved to 65.00%, excluding the charge to terminate Mt. Washington's data processing contract, from 74.88% for the year ended December 31, 2009.
The Company agreed to revised contract terms with its current data processing services provider during the quarter ended September 30, 2010 that included provisions for the conversion of Mt. Washington's accounts from their data processing services provider as completed in October 2010. As a result of these revised contract terms and the termination of Mt. Washington's prior data processing services contract, the Company expects to realize significant data processing cost savings in subsequent periods.
Mr. Gavegnano noted, "We are able to report an efficiency ratio of 65% for 2010 despite higher non-interest expense levels during the year following completion of the Mt. Washington acquisition. With the successful conversion of Mt. Washington's accounts to our core systems now behind us, we expect to realize even greater synergies between the East Boston Savings Bank and Mt. Washington divisions that will enable us to grow revenue and further improve operating efficiencies in 2011 and beyond."
The Company recorded a provision for income taxes of $2.3 million for the quarter ended December 31, 2010, reflecting an effective tax rate of 35.3%, compared to $1.4 million, or 40.4%, for the quarter ended December 31, 2009. For the year ended December 31, 2010, the provision for income taxes was $7.4 million, reflecting an effective tax rate of 35.6%, compared to $2.2 million, or 36.5%, for the year ended December 31, 2009. The increase in the income tax provision was primarily due to taxable income that was higher than tax preference items.
Total assets increased $624.4 million, or 51.5%, to $1.8 billion at December 31, 2010 from $1.2 billion at December 31, 2009, reflecting $465.0 million of assets acquired in the Mt. Washington merger. Cash and cash equivalents increased $135.5 million to $155.5 million at December 31, 2010 from $20.0 million at December 31, 2009, including $14.4 million of cash acquired in the Mt. Washington merger. Securities available for sale increased $67.2 million, or 22.9%, to $360.6 million at December 31, 2010 from $293.4 million at December 31, 2009, including $45.5 million of securities acquired in the Mt. Washington merger. Net loans increased $360.3 million, or 44.3%, to $1.2 billion at December 31, 2010 from $813.3 million at December 31, 2009, primarily due to $345.3 million of loans acquired in the Mt. Washington merger, partially offset by sales of fixed-rate bi-weekly mortgage loans totaling $34.1 million in the first quarter of 2010.
Total deposits increased $532.7 million, or 57.8%, to $1.5 billion at December 31, 2010 from $922.5 million at December 31, 2009, reflecting $380.4 million of deposits acquired in the Mt. Washington merger along with organic deposit growth of $152.3 million. Total borrowings increased $73.3 million, or 97.2%, to $148.7 million at December 31, 2010 from $75.4 million at December 31, 2009, reflecting $80.9 million of Federal Home Loan Bank advances acquired in the Mt. Washington merger.
Total stockholders' equity increased $15.2 million, or 7.6%, to $215.6 million at December 31, 2010, from $200.4 million at December 31, 2009, due primarily to $13.4 million in net income and a $2.5 million increase in accumulated other comprehensive income reflecting an increase in the fair value of available for sale securities, net of tax. Stockholders' equity to assets was 11.74% at December 31, 2010, compared to 16.54% at December 31, 2009, reflecting the increase in assets resulting from the Mt. Washington merger. Book value per share increased to $9.59 at December 31, 2010 from $9.07 at December 31, 2009. Tangible book value per share decreased to $8.98 at December 31, 2010 from $9.07 at December 31, 2009, primarily due to goodwill resulting from the Mt. Washington merger. Market price per share increased $3.09, or 35.5%, to $11.79 at December 31, 2010 from $8.70 at December 31, 2009. At December 31, 2010, the Company and the Bank continued to exceed all regulatory capital requirements.
As of December 31, 2010, the Company had repurchased 188,827 shares of its stock at an average price of $11.07 per share as included in treasury stock, or 40.0% of the 472,428 shares authorized for repurchase under the Company's third stock repurchase program announced on April 9, 2010. The Company has repurchased 1,120,327 shares since December 31, 2008.
Meridian Interstate Bancorp, Inc. is the holding company for East Boston Savings Bank. East Boston Savings Bank is a Massachusetts-chartered stock savings bank that operates from 22 full service locations in the greater Boston metropolitan area. East Boston Savings Bank was originally founded in 1848. 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 filings 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.
| MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES | ||
| Consolidated Balance Sheets | ||
| (Unaudited) | ||
| December 31, | December 31, | |
| (Dollars in thousands) | 2010 | 2009 |
| ASSETS | ||
| Cash and due from banks | $ 155,430 | $ 9,010 |
| Federal funds sold | 63 | 10,956 |
| Total cash and cash equivalents | 155,493 | 19,966 |
| Certificates of deposit - affiliate bank | -- | 3,000 |
| Securities available for sale, at fair value | 360,602 | 293,367 |
| Federal Home Loan Bank stock, at cost | 12,538 | 4,605 |
| Loans held for sale | 13,013 | 955 |
| Loans | 1,183,717 | 822,542 |
| Less allowance for loan losses | (10,155) | (9,242) |
| Loans, net | 1,173,562 | 813,300 |
| Bank-owned life insurance | 33,829 | 23,721 |
| Foreclosed real estate, net | 4,080 | 2,869 |
| Investment in affiliate bank | 11,497 | 11,005 |
| Premises and equipment, net | 34,425 | 23,195 |
| Accrued interest receivable | 7,543 | 6,231 |
| Prepaid deposit insurance | 3,026 | 5,114 |
| Deferred tax asset, net | 7,926 | 1,523 |
| Goodwill | 13,687 | -- |
| Other assets | 4,609 | 2,535 |
| Total assets | $ 1,835,830 | $ 1,211,386 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Deposits: | ||
| Non interest-bearing | $ 111,423 | $ 63,606 |
| Interest-bearing | 1,343,792 | 858,869 |
| Total deposits | 1,455,215 | 922,475 |
| Short-term borrowings - affiliate bank | 1,949 | 3,102 |
| Short-term borrowings - other | 10,037 | 22,108 |
| Long-term debt | 136,697 | 50,200 |
| Accrued expenses and other liabilities | 16,321 | 13,086 |
| Total liabilities | 1,620,219 | 1,010,971 |
| Stockholders' equity: | ||
| Common stock, no par value 50,000,000 shares authorized; 23,000,000 shares issued | -- | -- |
| Additional paid-in capital | 97,005 | 100,972 |
| Retained earnings | 122,563 | 109,189 |
| Accumulated other comprehensive income | 8,038 | 5,583 |
| Treasury stock, at cost, 192,218 and 517,500 shares at December 31, 2010 and 2009, respectively | (2,121) | (4,535) |
| Unearned compensation - ESOP, 703,800 and 745,200 shares at December 31, 2010 and 2009, respectively | (7,038) | (7,452) |
| Unearned compensation - restricted shares, 326,905 and 383,935 at December 31, 2010 and 2009, respectively | (2,836) | (3,342) |
| Total stockholders' equity | 215,611 | 200,415 |
| Total liabilities and stockholders' equity | $ 1,835,830 | $ 1,211,386 |
| MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES | ||||
| Consolidated Statements of Income | ||||
| (Unaudited) | ||||
| Three Months Ended December 31, | Years Ended December 31, | |||
| (Dollars in thousands, except per share amounts) | 2010 | 2009 | 2010 | 2009 |
| Interest and dividend income: | ||||
| Interest and fees on loans | $ 16,929 | $ 11,879 | $ 67,459 | $ 45,050 |
| Interest on debt securities | 3,176 | 2,750 | 13,467 | 10,432 |
| Dividends on equity securities | 258 | 227 | 923 | 1,071 |
| Interest on certificates of deposit | -- | 17 | 42 | 89 |
| Interest on other interest-earning assets | 84 | 2 | 168 | 25 |
| Total interest and dividend income | 20,447 | 14,875 | 82,059 | 56,667 |
| Interest expense: | ||||
| Interest on deposits | 4,580 | 3,781 | 17,444 | 18,386 |
| Interest on short-term borrowings | 8 | 14 | 63 | 61 |
| Interest on long-term debt | 884 | 444 | 3,533 | 1,945 |
| Total interest expense | 5,472 | 4,239 | 21,040 | 20,392 |
| Net interest income | 14,975 | 10,636 | 61,019 | 36,275 |
| Provision for loan losses | 936 | 2,274 | 3,181 | 4,082 |
| Net interest income, after provision for loan losses | 14,039 | 8,362 | 57,838 | 32,193 |
| Non-interest income: | ||||
| Customer service fees | 1,364 | 897 | 5,823 | 3,219 |
| Loan fees | 100 | 147 | 636 | 584 |
| Gain on sales of loans, net | 738 | 136 | 1,811 | 560 |
| Other-than-temporary impairment losses on securities | -- | -- | -- | (429) |
| Gain (loss) on sales of securities, net | 1,005 | 132 | 1,790 | (158) |
| Income from bank-owned life insurance | 304 | 220 | 1,169 | 890 |
| Equity income on investment in affiliate bank | 171 | 537 | 492 | 629 |
| Total non-interest income | 3,682 | 2,069 | 11,721 | 5,295 |
| Non-interest expenses: | ||||
| Salaries and employee benefits | 6,136 | 4,227 | 25,716 | 18,726 |
| Occupancy and equipment | 1,438 | 741 | 5,646 | 3,056 |
| Data processing | 918 | 434 | 3,200 | 1,752 |
| Data processing contract termination cost (income) | (386) | -- | 2,689 | -- |
| Marketing and advertising | 549 | 307 | 1,968 | 1,241 |
| Professional services | 503 | 462 | 2,443 | 1,997 |
| Foreclosed real estate (income) expense, net | 184 | (120) | 488 | 373 |
| Deposit insurance | 580 | 366 | 2,250 | 1,879 |
| Other general and administrative | 1,151 | 621 | 4,404 | 2,542 |
| Total non-interest expenses | 11,073 | 7,038 | 48,804 | 31,566 |
| Income before income taxes | 6,648 | 3,393 | 20,755 | 5,922 |
| Provision for income taxes | 2,347 | 1,372 | 7,381 | 2,159 |
| Net income | $ 4,301 | $ 2,021 | $ 13,374 | $ 3,763 |
| Income per share: | ||||
| Basic | $ 0.20 | $ 0.09 | $ 0.61 | $ 0.17 |
| Diluted | $ 0.20 | $ 0.09 | $ 0.61 | $ 0.17 |
| Weighted average shares: | ||||
| Basic | 21,998,757 | 21,680,522 | 22,072,047 | 21,820,860 |
| Diluted | 22,014,612 | 21,680,522 | 22,081,005 | 21,820,860 |
| MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES | ||||||
| Net Interest Income Analysis | ||||||
| (Unaudited) | ||||||
| For the Three Months Ended December 31, | ||||||
| 2010 | 2009 | |||||
| (Dollars in thousands) | Average Balance | Interest | Yield/ Cost (4) | Average Balance | Interest | Yield/ Cost (4) |
| Assets: | ||||||
| Interest-earning assets: | ||||||
| Loans (1) | $ 1,213,440 | $ 16,929 | 5.54% | $ 808,361 | $ 11,879 | 5.83% |
| Securities and certificates of deposit | 351,433 | 3,434 | 3.88 | 306,030 | 2,994 | 3.88 |
| Other interest-earning assets | 121,357 | 84 | 0.27 | 15,759 | 2 | 0.05 |
| Total interest-earning assets | 1,686,230 | 20,447 | 4.81 | 1,130,150 | 14,875 | 5.22 |
| Noninterest-earning assets | 129,828 | 73,519 | ||||
| Total assets | $ 1,816,058 | $ 1,203,669 | ||||
| Liabilities and stockholders' equity: | ||||||
| Interest-bearing liabilities: | ||||||
| NOW deposits | $ 132,785 | 146 | 0.44% | $ 38,890 | 19 | 0.19% |
| Money market deposits | 317,915 | 830 | 1.04 | 246,875 | 771 | 1.24 |
| Savings and other deposits | 186,904 | 255 | 0.54 | 130,435 | 198 | 0.60 |
| Certificates of deposit | 682,829 | 3,349 | 1.95 | 444,734 | 2,793 | 2.49 |
| Total interest-bearing deposits | 1,320,433 | 4,580 | 1.38 | 860,934 | 3,781 | 1.74 |
| FHLB advances and other borrowings | 153,349 | 892 | 2.31 | 68,981 | 458 | 2.63 |
| Total interest-bearing liabilities | 1,473,782 | 5,472 | 1.47 | 929,915 | 4,239 | 1.81 |
| Noninterest-bearing demand deposits | 117,436 | 63,637 | ||||
| Other noninterest-bearing liabilities | 9,403 | 9,533 | ||||
| Total liabilities | 1,600,621 | 1,003,085 | ||||
| Total stockholders' equity | 215,437 | 200,584 | ||||
| Total liabilities and stockholders' equity | $ 1,816,058 | $ 1,203,669 | ||||
| Net interest-earning assets | $ 212,448 | $ 200,235 | ||||
| Net interest income | $ 14,975 | $ 10,636 | ||||
| Interest rate spread (2) | 3.34% | 3.41% | ||||
| Net interest margin (3) | 3.52% | 3.73% | ||||
| Average interest-earning assets to average interest-bearing liabilities | 114.42% | 121.53% | ||||
| (1) Loans on non-accrual status are included in average balances. | ||||||
| (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) Annualized. | ||||||
| MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES | ||||||
| Net Interest Income Analysis | ||||||
| (Unaudited) | ||||||
| For the Years Ended December 31, | ||||||
| 2010 | 2009 | |||||
| (Dollars in thousands) | Average Balance | Interest | Yield/ Cost | Average Balance | Interest | Yield/ Cost |
| Assets: | ||||||
| Interest-earning assets: | ||||||
| Loans (1) | $ 1,184,816 | $ 67,459 | 5.69% | $ 768,278 | $ 45,050 | 5.86% |
| Securities and certificates of deposit | 350,038 | 14,432 | 4.12 | 291,372 | 11,592 | 3.98 |
| Other interest-earning assets | 72,136 | 168 | 0.23 | 25,883 | 25 | 0.10 |
| Total interest-earning assets | 1,606,990 | 82,059 | 5.11 | 1,085,533 | 56,667 | 5.22 |
| Noninterest-earning assets | 131,756 | 78,776 | ||||
| Total assets | $ 1,738,746 | $ 1,164,309 | ||||
| Liabilities and stockholders' equity: | ||||||
| Interest-bearing liabilities: | ||||||
| NOW deposits | $ 117,584 | 540 | 0.46% | $ 37,838 | 128 | 0.34% |
| Money market deposits | 308,756 | 3,447 | 1.12 | 231,248 | 3,956 | 1.71 |
| Savings and other deposits | 184,287 | 1,011 | 0.55 | 127,621 | 1,026 | 0.80 |
| Certificates of deposit | 644,181 | 12,446 | 1.93 | 436,341 | 13,276 | 3.04 |
| Total interest-bearing deposits | 1,254,808 | 17,444 | 1.39 | 833,048 | 18,386 | 2.21 |
| FHLB advances and other borrowings | 154,123 | 3,596 | 2.33 | 65,884 | 2,006 | 3.04 |
| Total interest-bearing liabilities | 1,408,931 | 21,040 | 1.49 | 898,932 | 20,392 | 2.27 |
| Noninterest-bearing demand deposits | 106,549 | 61,342 | ||||
| Other noninterest-bearing liabilities | 13,798 | 10,149 | ||||
| Total liabilities | 1,529,278 | 970,423 | ||||
| Total stockholders' equity | 209,468 | 193,886 | ||||
| Total liabilities and stockholders' equity | $ 1,738,746 | $ 1,164,309 | ||||
| Net interest-earning assets | $ 198,059 | $ 186,601 | ||||
| Net interest income | $ 61,019 | $ 36,275 | ||||
| Interest rate spread (2) | 3.62% | 2.95% | ||||
| Net interest margin (3) | 3.80% | 3.34% | ||||
| Average interest-earning assets to average interest-bearing liabilities | 114.06% | 120.76% | ||||
| (1) Loans on non-accrual status are included in average balances. | ||||||
| (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. | ||||||
| MERIDIAN INTERSTATE BANCORP, INC. AND SUBSIDIARIES | ||||
| Selected Financial Highlights | ||||
| (Unaudited) | ||||
| At or For the Three Months Ended | At or For the Years Ended | |||
| December 31, | December 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Key Performance Ratios | ||||
| Return on average assets (1) | 0.95% | 0.67% | 0.77% | 0.32% |
| Return on average equity (1) | 7.99 | 4.03 | 6.38 | 1.94 |
| Stockholders' equity to total assets | 11.74 | 16.54 | 11.74 | 16.54 |
| Interest rate spread (1) (2) | 3.34 | 3.41 | 3.62 | 2.95 |
| Net interest margin (1) (3) | 3.52 | 3.73 | 3.80 | 3.34 |
| Noninterest expense to average assets (1) | 2.44 | 2.34 | 2.81 | 2.71 |
| Efficiency ratio (4) | 64.92 | 55.98 | 65.00 | 74.88 |
| December 31, | ||||
| 2010 | 2009 | |||
| Asset Quality Ratios | ||||
| Allowance for loan losses/total loans | 0.86% | 1.12% | ||
| Allowance for loan losses/ nonperforming loans | 23.54 | 42.59 | ||
| Non-performing loans/total loans | 3.64 | 2.63 | ||
| Non-performing loans/total assets | 2.35 | 1.79 | ||
| Non-performing assets /total assets | 2.57 | 2.03 | ||
| Share Related | ||||
| Book value per share | $ 9.59 | $ 9.07 | ||
| Tangible book value per share | $ 8.98 | $ 9.07 | ||
| Market value per share | $ 11.79 | $ 8.70 | ||
| Shares outstanding | 22,480,877 | 22,098,565 | ||
| (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 excluding data processing contract termination costs, divided by the sum of net interest income and non-interest income excluding gains or losses on securities. | ||||