ý
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Massachusetts
|
20-4652200
|
(State
or other jurisdiction of incorporation or
|
(I.R.S.
Employer Identification No.)
|
organization)
|
Page
|
|||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
6
|
|||
12
|
|||
23
|
|||
24
|
|||
25
|
|||
25
|
|||
26
|
|||
26
|
|||
26
|
|||
26
|
|||
27
|
|||
28
|
MERIDIAN INTERSTATE BANCORP, INC.
|
||||||||
Consolidated
Balance Sheets
|
||||||||
(Unaudited)
|
||||||||
March
31,
|
December
31,
|
|||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 11,284 | $ | 10,354 | ||||
Federal
funds sold
|
18,521 | 9,911 | ||||||
Total
cash and cash equivalents
|
29,805 | 20,265 | ||||||
Certificates
of deposit - affiliate bank
|
2,000 | 7,000 | ||||||
Securities
available for sale, at fair value
|
278,707 | 252,529 | ||||||
Federal
Home Loan Bank stock, at cost
|
4,303 | 4,303 | ||||||
Loans
|
745,378 | 711,016 | ||||||
Less
allowance for loan losses
|
(7,456 | ) | (6,912 | ) | ||||
Loans,
net
|
737,922 | 704,104 | ||||||
Bank-owned
life insurance
|
23,045 | 22,831 | ||||||
Investment
in affiliate bank
|
10,349 | 10,376 | ||||||
Premises
and equipment, net
|
22,587 | 22,710 | ||||||
Accrued
interest receivable
|
5,415 | 6,036 | ||||||
Foreclosed
real estate, net
|
2,449 | 2,604 | ||||||
Deferred
tax asset, net
|
10,462 | 10,057 | ||||||
Other
assets
|
1,723 | 2,537 | ||||||
Total
assets
|
$ | 1,128,767 | $ | 1,065,352 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 60,560 | $ | 55,216 | ||||
Interest-bearing
|
798,700 | 741,636 | ||||||
Total
deposits
|
859,260 | 796,852 | ||||||
Short-term
borrowings - affiliate bank
|
7,546 | 7,811 | ||||||
Long-term
debt
|
57,675 | 57,675 | ||||||
Accrued
expenses and other liabilities
|
17,240 | 13,174 | ||||||
Total
liabilities
|
941,721 | 875,512 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock, no par value 50,000,000 shares authorized;
|
||||||||
23,000,000
shares issued; 22,586,000 and 22,750,000 shares
|
||||||||
outstanding
at March 31, 2009 and December 31, 2008, respectively
|
- | - | ||||||
Additional
paid-in capital
|
100,779 | 100,684 | ||||||
Retained
earnings
|
104,318 | 105,426 | ||||||
Accumulated
other comprehensive loss
|
(6,723 | ) | (6,205 | ) | ||||
Unearned
compensation - ESOP - 776,250 and 786,600 shares
|
||||||||
at
March 31, 2009 and December 31, 2008, respectively
|
(7,762 | ) | (7,866 | ) | ||||
Unearned
compensation - restricted shares - 414,000
|
||||||||
and
250,000 shares at March 31, 2009 and
|
||||||||
December
31, 2008, respectively
|
(3,566 | ) | (2,199 | ) | ||||
Total
stockholders' equity
|
187,046 | 189,840 | ||||||
Total
liabilities and stockholders' equity
|
$ | 1,128,767 | $ | 1,065,352 |
MERIDIAN
INTERSTATE BANCORP, INC.
|
||||||||
Consolidated
Statements of Loss
|
||||||||
(Unaudited)
|
||||||||
Three
Months Ended
March 31 |
||||||||
(Dollars
in thousands, except per share amounts)
|
2009
|
2008
|
||||||
Interest
and dividend income:
|
||||||||
Interest
and fees on loans
|
$ | 10,645 | $ | 9,183 | ||||
Interest
on debt securities
|
2,455 | 2,612 | ||||||
Dividends
on equity securities
|
293 | 265 | ||||||
Interest
on certificates of deposit
|
42 | - | ||||||
Interest
on federal funds sold
|
12 | 1,063 | ||||||
Total
interest and dividend income
|
13,447 | 13,123 | ||||||
Interest
expense:
|
||||||||
Interest
on deposits
|
5,263 | 6,911 | ||||||
Interest
on short-term borrowings
|
35 | 62 | ||||||
Interest
on long-term debt
|
497 | 312 | ||||||
Total
interest expense
|
5,795 | 7,285 | ||||||
Net
interest income
|
7,652 | 5,838 | ||||||
Provision
for loan losses
|
546 | 131 | ||||||
Net
interest income, after provision
|
||||||||
for
loan losses
|
7,106 | 5,707 | ||||||
Non-interest
income:
|
||||||||
Customer
service fees
|
697 | 696 | ||||||
Loan
fees
|
150 | 178 | ||||||
Gain
on sales of loans, net
|
183 | 19 | ||||||
Gain
(loss) on securities, net
|
(124 | ) | 2,266 | |||||
Income
from bank-owned life insurance
|
214 | 185 | ||||||
Equity
loss on investment in affiliate bank
|
(27 | ) | (168 | ) | ||||
Total
non-interest income
|
1,093 | 3,176 | ||||||
Non-interest
expenses:
|
||||||||
Salaries
and employee benefits
|
6,314 | 4,092 | ||||||
Occupancy
and equipment
|
864 | 780 | ||||||
Data
processing
|
438 | 387 | ||||||
Marketing
and advertising
|
234 | 246 | ||||||
Professional
services
|
652 | 309 | ||||||
Contribution
to the Meridian
|
||||||||
Charitable
Foundation
|
- | 3,000 | ||||||
Foreclosed
real estate expense
|
255 | 29 | ||||||
Other
general and administrative
|
920 | 469 | ||||||
Total
non-interest expenses
|
9,677 | 9,312 | ||||||
Loss
before income taxes
|
(1,478 | ) | (429 | ) | ||||
Benefit
for income taxes
|
(370 | ) | (108 | ) | ||||
Net
loss
|
$ | (1,108 | ) | $ | (321 | ) | ||
Loss
per share:
|
||||||||
Basic
|
$ | (0.05 | ) | N/A | ||||
Diluted
|
$ | (0.05 | ) | N/A | ||||
Weighted
Average Shares:
|
||||||||
Basic
|
21,868,565 | N/A | ||||||
Diluted
|
22,050,960 | N/A |
MERIDIAN
INTERSTATE BANCORP, INC.
|
||||||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||
Three
Months Ended March 31, 2009 and 2008
|
||||||||||||||||||||||||||||
(Dollars
in thousands)
|
Shares
of
No Par Common Stock Outstanding |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Unearned
Compensation ESOP |
Unearned
Compensation Restricted Shares |
Total
|
|||||||||||||||||||||
Three
Months Ended March 31, 2008
|
||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
- | $ | - | $ | 109,177 | $ | 6,507 | $ | - | $ | - | $ | 115,684 | |||||||||||||||
Adjustment
to initially apply EITF 06-4
|
- | - | (1,642 | ) | - | - | (1,642 | ) | ||||||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||
Net
loss
|
- | - | (321 | ) | - | - | - | (321 | ) | |||||||||||||||||||
Change
in net unrealized gain on securities available for
|
||||||||||||||||||||||||||||
sale,
net of reclassification adjustment and tax effects
|
- | - | - | (2,713 | ) | - | - | (2,713 | ) | |||||||||||||||||||
Change
in prior service costs and
|
||||||||||||||||||||||||||||
actuarial
losses, net of tax effects
|
- | - | - | 5 | - | - | 5 | |||||||||||||||||||||
Total
comprehensive loss
|
(3,029 | ) | ||||||||||||||||||||||||||
Issuance
of 12,650,000 shares to the mutual
|
||||||||||||||||||||||||||||
holding
company
|
12,650,000 | - | - | - | - | - | - | |||||||||||||||||||||
Issuance
of 10,050,000 shares in the initial
|
||||||||||||||||||||||||||||
public
offering, net of expenses of $2,867
|
10,050,000 | 97,633 | - | - | - | - | 97,633 | |||||||||||||||||||||
Issuance
and contribution of 300,000 shares
|
||||||||||||||||||||||||||||
to
the Meridian Charitable Foundation
|
300,000 | 3,000 | - | - | - | - | 3,000 | |||||||||||||||||||||
Purchase
of common stock by the ESOP
|
- | - | - | - | (8,280 | ) | - | - | ||||||||||||||||||||
ESOP
shares earned (10,350 shares)
|
- | (5 | ) | - | - | 104 | - | (8,280 | ) | |||||||||||||||||||
Balance
at March 31, 2008
|
23,000,000 | $ | 100,628 | $ | 107,214 | $ | 3,799 | $ | (8,176 | ) | $ | - | $ | 203,465 | ||||||||||||||
Three
Months Ended March 31, 2009
|
||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
22,750,000 | $ | 100,684 | $ | 105,426 | $ | (6,205 | ) | $ | (7,866 | ) | $ | (2,199 | ) | $ | 189,840 | ||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||
Net
loss
|
- | - | (1,108 | ) | - | - | - | (1,108 | ) | |||||||||||||||||||
Change
in net unrealized loss on securities available for
|
||||||||||||||||||||||||||||
sale,
net of reclassification adjustment and tax effects
|
- | - | - | (518 | ) | - | - | (518 | ) | |||||||||||||||||||
Total
comprehensive loss
|
(1,626 | ) | ||||||||||||||||||||||||||
ESOP
shares earned (10,350 shares)
|
- | (17 | ) | - | - | 104 | - | 87 | ||||||||||||||||||||
Purchase
of 164,000 shares
|
||||||||||||||||||||||||||||
for
restricted share plan
|
(164,000 | ) | - | - | - | - | (1,468 | ) | (1,468 | ) | ||||||||||||||||||
Share-based
compensation expense
|
- | 112 | - | - | 101 | 213 | ||||||||||||||||||||||
Balance
at March 31, 2009
|
22,586,000 | $ | 100,779 | $ | 104,318 | $ | (6,723 | ) | $ | (7,762 | ) | $ | (3,566 | ) | $ | 187,046 |
Three
Months Ended March 31,
|
||||||||
(In
thousands)
|
2009
|
2008
|
||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$ | (1,108 | ) | $ | (321 | ) | ||
Adjustments
to reconcile net loss to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Contribution
of stock to charitable foundation
|
- | 3,000 | ||||||
Earned
ESOP shares
|
87 | 99 | ||||||
Provision
for loan losses
|
546 | 131 | ||||||
Amortization
of net deferred loan origination fees
|
(57 | ) | (78 | ) | ||||
Net
amortization of securities available for sale
|
302 | 150 | ||||||
Depreciation
and amortization expense
|
329 | 324 | ||||||
Loss
(gain) on securities, net
|
124 | (2,266 | ) | |||||
Loss
and provision for foreclosed real estate
|
148 | 5 | ||||||
Deferred
income tax provision (benefit)
|
14 | (1,152 | ) | |||||
Income
from bank-owned life insurance
|
(214 | ) | (185 | ) | ||||
Equity
loss on investment in affiliate bank
|
27 | 168 | ||||||
Share-based
compensation expense
|
213 | - | ||||||
Net
changes in:
|
||||||||
Accrued
interest receivable
|
621 | 514 | ||||||
Other
assets
|
814 | 3,666 | ||||||
Accrued
expenses and other liabilities
|
4,066 | (1,131 | ) | |||||
Net
cash provided by operating activities
|
5,912 | 2,924 | ||||||
Cash
flows from investing activities:
|
||||||||
Maturities
(purchases) of certifictes of deposit
|
5,000 | (2,000 | ) | |||||
Activity
in securities available for sale:
|
||||||||
Proceeds
from maturities, calls and principal payments
|
17,751 | 25,750 | ||||||
Proceeds
from sales
|
- | 9,804 | ||||||
Purchases
|
(45,292 | ) | (22,203 | ) | ||||
Loans
originated, net of principal payments received
|
(34,632 | ) | (12,257 | ) | ||||
Purchase
of bank-owned life insurance
|
- | (4,000 | ) | |||||
Purchases
of premises and equipment
|
(206 | ) | (137 | ) | ||||
Capitalized
cost on foreclosed real estate
|
(180 | ) | - | |||||
Proceeds
from sales of foreclosed real estate
|
512 | 290 | ||||||
Net
cash used in investing activities
|
(57,047 | ) | (4,753 | ) |
Three
Months Ended March 31,
|
||||||||
(In
thousands)
|
2009
|
2008
|
||||||
Cash
flows from financing activities:
|
||||||||
Net
increase in deposits
|
62,408 | 31,148 | ||||||
Proceeds
from sale of common stock
|
- | 97,633 | ||||||
Common
stock purchased by ESOP
|
- | (8,280 | ) | |||||
Decrease
in stock subscriptions
|
- | (62,518 | ) | |||||
Purchase
of stock for equity incentive plan
|
(1,468 | ) | - | |||||
Net
change in borrowings with maturities
|
||||||||
less
than three months
|
(265 | ) | - | |||||
Repayment
of Federal Home Loan Bank advances
|
||||||||
with
maturities of three months or more
|
- | (6,300 | ) | |||||
Net
cash provided by financing activities
|
60,675 | 51,683 | ||||||
Net
change in cash and cash equivalents
|
9,540 | 49,854 | ||||||
Cash
and cash equivalents at beginning of period
|
20,265 | 103,093 | ||||||
Cash
and cash equivalents at end of period
|
$ | 29,805 | $ | 152,947 | ||||
Supplemental
cash flow information:
|
||||||||
Interest
paid on deposits
|
$ | 5,332 | $ | 6,917 | ||||
Interest
paid on borrowings
|
532 | 404 | ||||||
Income
taxes paid
|
170 | 20 | ||||||
Non-cash
investing and financing activities:
|
||||||||
Transfers
from loans to foreclosed real estate
|
325 | 908 |
March
31, 2009
|
|
|||||||||||||||
(In
thousands)
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Securities
available for sale
|
$ | 73,589 | $ | 205,118 | - | $ | 278,707 | |||||||||
December
31, 2008
|
|
|||||||||||||||
(In
thousands)
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Securities
available for sale
|
$ | 47,799 | $ | 204,730 | - | $ | 252,529 |
March
31, 2009
|
Quarter
Ended
March
31,
2009
|
|||||||||||||||
(In
thousands)
|
Level
1
|
Level
2
|
Level
3
|
Total
Losses
|
||||||||||||
Impaired
loans
|
- | - | 2,156 | 109 | ||||||||||||
Foreclosed
real esate
|
- | - | 2,449 | 60 | ||||||||||||
$ | - | $ | - | $ | 4,605 | $ | 169 | |||||||||
December
31, 2008
|
Quarter
Ended
March
31,
2008
|
|||||||||||||||
(In
thousands)
|
Level
1
|
Level
2
|
Level
3
|
Total
Losses
|
||||||||||||
Impaired
loans
|
- | - | 1,511 | 59 | ||||||||||||
Foreclosed
real esate
|
- | - | 2,604 | - | ||||||||||||
$ | - | $ | - | $ | 4,115 | $ | 59 |
(Dollars
in thousands, except per share amounts)
|
Basic
|
Diluted
|
||||||
Net
Loss
|
$ | (1,108 | ) | $ | (1,108 | ) | ||
Weighted
average shares outstanding
|
21,868,565 | 21,868,565 | ||||||
Effect
of dilutive securities
|
- | 182,395 | ||||||
Adjusted
weighted average shares outstanding
|
21,868,565 | 22,050,960 | ||||||
Loss
Per Share
|
$ | (0.05 | ) | $ | (0.05 | ) |
|
·
|
significantly
increased competition among depository and other financial
institutions;
|
|
·
|
inflation
and changes in the interest rate environment or other changes that reduce
our interest margins or reduce the fair value of financial
instruments;
|
|
·
|
general
economic conditions, either nationally or in our market areas, that are
worse than expected;
|
|
·
|
adverse
changes in the securities markets;
|
|
·
|
legislative
or regulatory changes that adversely affect our
business;
|
|
·
|
our
ability to enter new markets successfully and take advantage of growth
opportunities, and the possible dilutive effect of potential acquisitions
or de novo
branches, if any;
|
|
·
|
changes
in consumer spending, borrowing and savings
habits;
|
|
·
|
changes
in accounting policies and practices, as may be adopted by bank regulatory
agencies, the Financial Accounting Standards Board, the Public Company
Accounting Oversight Board and other promulgating
authorities;
|
|
·
|
inability
of third-party providers to perform their obligations to
us;
|
|
·
|
changes
in our organization, compensation and benefit
plans;
|
|
·
|
changes
in real estate values in our market
areas;
|
|
·
|
the
effect of the current governmental effort to restructure the U.S.
financial and regulatory system;
|
|
·
|
the
effect of developments in the secondary market affecting our loan
pricing;
|
|
·
|
the
level of future deposit premiums;
and
|
|
·
|
the
effect of the current financial crisis on our loan portfolio and our
investment portfolio, and our deposit and other
customers.
|
Financial
Condition Highlights
|
||||||||
At
|
At
|
|||||||
March
31,
|
December
31,
|
|||||||
(In
thousands)
|
2009
|
2008
|
||||||
Total
assets
|
$ | 1,128,767 | $ | 1,065,352 | ||||
Secuities
available for sale
|
278,707 | 252,529 | ||||||
Net
loans
|
737,922 | 704,104 | ||||||
Deposits
|
859,260 | 796,852 | ||||||
Borrowed
funds
|
65,221 | 65,486 | ||||||
Stockholders'
equity
|
187,046 | 189,840 | ||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||
Net
interest income
|
$ | 7,652 | $ | 5,838 | ||||
Provision
for loan losses
|
546 | 131 | ||||||
Non-interest
income
|
1,093 | 3,176 | ||||||
Non-interest
expenses
|
9,677 | 9,312 | ||||||
Benefit
for income taxes
|
(370 | ) | (108 | ) | ||||
Net
loss
|
(1,108 | ) | (321 | ) | ||||
Interest
rate spread
|
2.55 | % | 1.82 | % | ||||
Net
interest margin
|
3.04 | % | 2.43 | % |
At
March 31,
|
At
December 31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
(In
thousands)
|
Amortized
|
Fair
|
Amortized
|
Fair
|
||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
Debt
securities:
|
||||||||||||||||
U.S.
Government – sponsored enterprises
|
$ | - | $ | - | $ | 1,000 | $ | 1,003 | ||||||||
Corporate
bonds
|
209,970 | 205,079 | 210,079 | 203,687 | ||||||||||||
Mortgage-backed
securities
|
40 | 39 | 40 | 40 | ||||||||||||
Total
debt securities
|
210,010 | 205,118 | 211,119 | 204,730 | ||||||||||||
Marketable
equity securities :
|
||||||||||||||||
Common
stocks
|
27,276 | 21,554 | 26,142 | 22,854 | ||||||||||||
Money
market mutual funds
|
52,035 | 52,035 | 24,945 | 24,945 | ||||||||||||
Total
marketable equity securities
|
79,311 | 73,589 | 51,087 | 47,799 | ||||||||||||
Total
securities available for sale
|
$ | 289,321 | $ | 278,707 | $ | 262,206 | $ | 252,529 |
At
March 31, 2009
|
At
December 31, 2008
|
|||||||||||||||
(Dollars
in thousands)
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Real
estate loans:
|
||||||||||||||||
One-to
four-family
|
$ | 284,565 | 38.1 | % | $ | 274,716 | 38.6 | % | ||||||||
Multi-family
|
46,560 | 6.2 | 31,212 | 4.4 | ||||||||||||
Commercial
real estate
|
277,825 | 37.2 | 269,454 | 37.7 | ||||||||||||
Construction
|
91,794 | 12.3 | 91,652 | 12.9 | ||||||||||||
Home
equity lines
|
||||||||||||||||
of
credit
|
29,466 | 4.0 | 28,253 | 4.0 | ||||||||||||
Total
real estate loans
|
730,210 | 97.8 | 695,287 | 97.6 | ||||||||||||
Commercial
business loans
|
14,851 | 2.0 | 15,355 | 2.2 | ||||||||||||
Consumer
loans
|
1,303 | 0.2 | 1,379 | 0.2 | ||||||||||||
Total
loans
|
746,364 | 100.0 | % | 712,021 | 100.0 | % | ||||||||||
Net
deferred loan origination fees
|
(986 | ) | (1,005 | ) | ||||||||||||
Allowance
for loan losses
|
(7,456 | ) | (6,912 | ) | ||||||||||||
Loans,
net
|
$ | 737,922 | $ | 704,104 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(Dollars
in thousands)
|
2009
|
2008
|
||||||
Beginning
balance
|
$ | 6,912 | $ | 3,637 | ||||
Provision
for loan losses
|
546 | 131 | ||||||
Charge
offs:
|
||||||||
Real
estate loans
|
- | - | ||||||
Commercial
business loans
|
- | - | ||||||
Consumer
loans
|
(2 | ) | - | |||||
Total
charge-offs
|
(2 | ) | - | |||||
Recoveries:
|
||||||||
Real
estate loans
|
- | - | ||||||
Commercial
business
|
- | - | ||||||
Consumer
loans
|
- | - | ||||||
Total
recoveries
|
- | - | ||||||
Net
recoveries (charge-offs)
|
(2 | ) | - | |||||
Ending
Balance
|
$ | 7,456 | $ | 3,768 | ||||
Allowance
to non-accrual loans
|
47.27 | % | 127.95 | % | ||||
Allowance
to total loans outstanding
|
1.00 | % | 0.64 | % | ||||
Net
recovery (charge-offs) to
average
loans outstanding
|
0.00 | % | 0.00 | % |
At
March 31,
|
At
December 31,
|
|||||||
(In
thousands)
|
2009
|
2008
|
||||||
Loans
accounted for on a non-accrual basis:
|
||||||||
Real
estate loans:
|
||||||||
One-to
four-family
|
$ | 4,021 | $ | 3,962 | ||||
Multi-family
|
- | - | ||||||
Commercial
real estate
|
798 | 883 | ||||||
Home
equity lines of credit
|
- | - | ||||||
Construction
|
10,906 | 9,387 | ||||||
Total
real estate loans
|
15,725 | 14,232 | ||||||
Commercial
business loans
|
- | - | ||||||
Consumer
loans
|
49 | - | ||||||
Total
non-accrual loans
|
15,774 | 14,232 | ||||||
Foreclosed
assets
|
2,449 | 2,604 | ||||||
Total
nonperforming assets
|
$ | 18,223 | $ | 16,836 | ||||
Non-accrual
loans to total loans
|
2.11 | % | 2.00 | % | ||||
Non-accrual
loans to total assets
|
1.40 | % | 1.34 | % | ||||
Non-performing
assets to total assets
|
1.61 | % | 1.58 | % |
At
March 31, 2009
|
At
December 31, 2008
|
|||||||||||||||
(Dollars
in thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
NOW
and demand deposits
|
$ | 97,429 | 11.34 | % | $ | 92,051 | 11.55 | % | ||||||||
Money
market deposits
|
204,746 | 28.83 | 172,876 | 21.69 | ||||||||||||
Regular
and other deposits
|
122,921 | 14.30 | 117,913 | 14.80 | ||||||||||||
Certificates
of deposit
|
434,164 | 50.53 | 414,012 | 51.96 | ||||||||||||
Total
|
$ | 859,260 | 100.00 | % | $ | 796,852 | 100.00 | % |
For
The Three Months Ended March 31,
|
||||||||||||||||||||||||
2009
|
2008
|
|||||||||||||||||||||||
(Dollars
in thousands)
|
Average
Balance
|
Interest
Earned/Paid
|
Yield/
Cost
(4)
|
Average
Balance
|
Interest
Earned/Paid
|
Yield/
Cost
(4)
|
||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
(1)
|
$ | 726,851 | $ | 10,645 | 5.94 | % | $ | 567,832 | $ | 9,183 | 6.50 | % | ||||||||||||
Securities
and certificates of deposit
|
262,955 | 2,790 | 4.30 | 259,907 | 2,877 | 4.45 | ||||||||||||||||||
Federal
funds sold
|
30,361 | 12 | 0.16 | 138,471 | 1,063 | 3.09 | ||||||||||||||||||
Total
interest-earning assets
|
1,020,167 | 13,447 | 5.35 | 966,210 | 13,123 | 5.46 | ||||||||||||||||||
Noninterest-earning
assets
|
75,208 | 74,585 | ||||||||||||||||||||||
Total
assets
|
$ | 1,095,375 | $ | 1,040,795 | ||||||||||||||||||||
Liabilities
and stockholders' equity:
|
||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
NOW deposits
|
$ | 36,610 | 46 | 0.51 | % | $ | 37,511 | 68 | 0.72 | % | ||||||||||||||
Money
market deposits
|
183,199 | 1,027 | 2.27 | 140,123 | 1,153 | 3.30 | ||||||||||||||||||
Savings
and other deposits
|
122,990 | 302 | 1.00 | 145,970 | 395 | 1.09 | ||||||||||||||||||
Certificates
of deposit
|
427,534 | 3,888 | 3.69 | 445,869 | 5,295 | 4.78 | ||||||||||||||||||
Total
interest-bearing deposits
|
770,333 | 5,263 | 2.77 | 769,473 | 6,911 | 3.61 | ||||||||||||||||||
FHLB
advances and other borrowings
|
67,752 | 532 | 3.19 | 35,913 | 374 | 4.19 | ||||||||||||||||||
Total
interest-bearing liabilities
|
838,085 | 5,795 | 2.80 | 805,386 | 7,285 | 3.64 | ||||||||||||||||||
Noninterest-bearing
demand deposits
|
58,705 | 51,801 | ||||||||||||||||||||||
Other
noninterest-bearing liabilities
|
9,078 | 24,033 | ||||||||||||||||||||||
Total
liabilities
|
905,868 | 881,220 | ||||||||||||||||||||||
Total
stockholders' equity
|
189,507 | 159,575 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 1,095,375 | $ | 1,040,795 | ||||||||||||||||||||
Net
interest income
|
$ | 7,652 | $ | 5,838 | ||||||||||||||||||||
Interest
rate spread (2)
|
2.55 | % | 1.82 | % | ||||||||||||||||||||
Net
interest margin (3)
|
3.04 | % | 2.43 | % | ||||||||||||||||||||
Average
interest-earning assets to
average
interest-bearing liabilities
|
121.73 | % | 119.97 | % | ||||||||||||||||||||
(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.
|
(a.)
|
–
(b.) Not applicable.
|
|
(c.)The
following table sets forth information with respect to any purchase made
by or on behalf of the Company during the indicated
periods:
|
Period
|
(a)
|
(b)
|
(c)
|
(d)
|
Total
Number of
Shares
(or Units)
Purchased
|
Average
Price
Paid
Per Share (or
Unit)
|
Total
Number of
Shares
(or Units)
Purchased
as Part
of
Publicly
Announced
Plans
or
Programs (1)
|
Maximum
Number
(or
Approximate
Dollar
Value) of
Shares
(or Units)
that
May Yet Be
Purchased
Under
the
Plans or
Programs
|
|
January
1 – 31, 2009
|
-
|
-
|
-
|
164,000
|
February
1 – 28, 2009 (1)
|
164,000
|
$ 8.95
|
164,000
|
-
|
March
1 – 31, 2009 (2)
|
-
|
-
|
-
|
517,500
|
Total
|
164,000
|
$ 8.95
|
164,000
|
517,500
|
Item
6.
|
Exhibits
|
3.1
|
Amended
and Restated Articles of Organization of Meridian Interstate Bancorp,
Inc.*
|
3.2
|
Amended
and Restated Bylaws of Meridian Interstate Bancorp,
Inc.*
|
4
|
Form
of Common Stock Certificate of Meridian Interstate Bancorp,
Inc.*
|
10.1
|
Form
of East Boston Savings Bank Employee Stock Ownership
Plan*
|
10.2
|
Form
of East Boston Savings Bank Employee Stock Ownership Plan Trust
Agreement*
|
10.3
|
East
Boston Savings Bank Employee Stock Ownership Plan Loan Agreement, Pledge
Agreement and Promissory Note*
|
10.4
|
Form
of Amended and Restated Employment Agreement*
|
10.5
|
Form
of East Boston Savings Bank Employee Severance Compensation
Plan*
|
10.6
|
Form
of Supplemental Executive Retirement Agreements with certain
directors*
|
10.7
|
Form
of Separation Agreement with Robert F. Verdonck incorporated by reference
to the Form 8-K filed on June 9, 2008
|
10.8
|
Form
of Separation Agreement with Leonard V. Siuda incorporated by reference to
Form 8-K filed on April 7, 2009
|
10.9
|
Form
of Separation Agreement with Philip F. Freehan incorporated by reference
to Form 8-K filed on April 7, 2009
|
10.10
|
Form
of Supplemental Executive Retirement Agreement with Richard J. Gavegnano
filed as an exhibit to Form 10-Q filed on May 14, 2008
|
10.11
|
Form
of Employment Agreement with Richard J. Gavegnano incorporated by
reference to the Form 8-K filed on January 12, 2009
|
10.12
|
Form
of Employment Agreement with Deborah J. Jackson incorporated by reference
to the Form 8-K filed on January 22, 2009
|
10.13
|
Form
of Supplemental Executive Retirement Agreement with Deborah J. Jackson
incorporated by reference to the Form 8-K filed on January 22,
2009
|
10.14
|
2008 Equity Incentive
Plan**
|
10.15
|
Amendment
to Supplemental Executive Retirement Agreements with certain directors
incorporated by reference to the Form 10K-A filed on April 8,
2009
|
21
|
Subsidiaries
of Registrant*
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
|
|
_______________________________
|
|
*
|
Incorporated
by reference to the Registration Statement on Form S-1 of Meridian
Interstate Bancorp, Inc. (File No. 333-146373), originally filed with the
Securities and Exchange Commission on September 28,
2007.
|
**
|
Incorporated
by reference to Appendix A to the Company’s Definitive
Proxy Statement for its 2009 Annual Meeting, as filed with the Securities
and Exchange Commission on April 24,
2009.
|
MERIDIAN INTERSTATE
BANCORP, INC.
|
|
(Registrant)
|
|
Dated: May
11, 2009
|
/s/ Richard J. Gavegnano
|
Richard
J. Gavegnano
|
|
Chairman
and Chief Executive Officer
|
|
(Principal
Executive Officer)
|
|
Dated: May
11, 2009
|
/s/ Deborah J. Jackson
|
Deborah
J. Jackson
|
|
President
and Acting Chief Financial Officer
|
|
(Principal
Financial and Accounting
Officer)
|