BOSTON, April 25, 2017 (GLOBE NEWSWIRE) -- Meridian Bancorp, Inc. (the "Company" or "Meridian") (NASDAQ:EBSB), the holding company for East Boston Savings Bank (the "Bank") announced net income of $9.2 million, or $0.18 per diluted share, for the quarter ended March 31, 2017, compared to $11.3 million, or $0.22 per diluted share, for the quarter ended December 31, 2016 and $7.5 million, or $0.14 per diluted share, for the quarter ended March 31, 2016. The Company's return on average assets was 0.82% for the quarter ended March 31, 2017, compared to 1.05% for the quarter ended December 31, 2016 and 0.83% for the quarter ended March 31, 2016. The Company's return on average equity was 6.03% for the quarter ended March 31, 2017, compared to 7.51% for the quarter ended December 31, 2016 and 5.11% for the quarter ended March 31, 2016.

Richard J. Gavegnano, Chairman, President and Chief Executive Officer, said, "I am pleased to report net income of $9.2 million, a new first quarter record, for 2017, up 24% from the first quarter of 2016 resulting from an 18% rise in net interest income. During the first quarter, our total assets grew to $4.6 billion reflecting net growth of $122 million, or 3%, in loans to $4.0 billion and of $181 million, or 5%, in deposits to $3.7 billion. We are continuing to attract new business and consumer relationships that are the key to our strong organic growth as we consider other opportunities to gain market share in the Boston area and build stockholder value."

The Company's net interest income was $33.4 million for the quarter ended March 31, 2017, down $66,000, or 0.2%, from the quarter ended December 31, 2016 and up $5.0 million, or 17.5%, from the quarter ended March 31, 2016. The interest rate spread and net interest margin on a tax-equivalent basis were 2.99% and 3.20%, respectively, for the quarter ended March 31, 2017 compared to 3.09% and 3.31%, respectively, for the quarter ended December 31, 2016 and 3.18% and 3.39%, respectively, for the quarter ended March 31, 2016. The decrease in net interest income as compared to the quarter ended December 31, 2016 was primarily due to growth in deposits and borrowings that exceeded loan growth, and a decline in the yield on loans with an increase in the cost of funds.  As compared to the quarter ended March 31, 2016, the increase in net interest income was primarily due to loan growth, partially offset by growth in deposits and borrowings along with a decline in the yield on loans and an increase in the cost of funds.

Total interest and dividend income increased to $41.8 million for the quarter ended March 31, 2017, up $503,000, or 1.2%, from the quarter ended December 31, 2016 and $7.6 million, or 22.1%, from the quarter ended March 31, 2016, primarily due to growth in the Company's average loan balances to $4.001 billion, partially offset by declines in the yield on loans to 4.23% on a tax-equivalent basis, reflecting reductions in prepayment, late payment and other fees of $755,000 compared to the fourth quarter of 2016 and $661,000 compared to the first quarter of 2016. The Company's yield on interest-earning assets on a tax-equivalent basis was 3.98% for the quarter ended March 31, 2017, down seven basis points from the quarter ended December 31, 2016 and eight basis points from the quarter ended March 31, 2016.

Total interest expense increased to $8.4 million for the quarter ended March 31, 2017, up $569,000, or 7.3%, from the quarter ended December 31, 2016 and $2.6 million, or 44.7%, from the quarter ended March 31, 2016. Interest expense on deposits increased to $7.4 million for the quarter ended March 31, 2017, up $457,000, or 6.6%, from the quarter ended December 31, 2016 and $2.2 million, or 41.9%, from the quarter ended March 31, 2016 primarily due to growth in average total deposits to $3.531 billion and an increase in the cost of average total deposits to 0.85%. Interest expense on borrowings increased to $980,000 for the quarter ended March 31, 2017, up $112,000, or 12.9%, from the quarter ended December 31, 2016 and $403,000, or 69.8%, from the quarter ended March 31, 2016 primarily due to growth in average total borrowings to $330.6 million, and an increase in the cost of average total borrowings to 1.20%. The Company's cost of funds was 0.88% for the quarter ended March 31, 2017, up three basis points from the quarter ended December 31, 2016 and 10 basis points from the quarter ended March 31, 2016.

Mr. Gavegnano noted, "Our average loan balances in the first quarter increased by 5% from the fourth quarter and 27% from the first quarter of last year while our loan yield decreased to 4.23% from the prior quarters due primarily to lower fees recognized on early repayments and late payments on loans. Our average total deposits and borrowings also increased by 5% from the fourth quarter and 28% from the first quarter of last year and our cost of funds increased to 0.88% as we built and maintained liquidity to fund our strong lending pipeline."

The Company's provision for loan losses was $1.6 million for the quarter ended March 31, 2017, up $315,000 from the quarter ended December 31, 2016 and $553,000 from the quarter ended March 31, 2016. The allowance for loan losses was $41.8 million or 1.03% of total loans at March 31, 2017, compared to $40.1 million or 1.02% of total loans at December 31, 2016 and $34.4 million or 1.06% of total loans at March 31, 2016. The changes in the provision and the allowance for loan losses were based on management's assessment of loan portfolio growth and composition changes, declines in historical charge-off trends, reduced levels of problem loans and other improving asset quality trends.

Net charge-offs totaled $3,000 for the quarter ended March 31, 2017, or less than 0.01% of average loans outstanding on an annualized basis compared to net recoveries of $147,000 for the quarter ended December 31, 2016, or 0.02% of average loans outstanding on an annualized basis and net charge-offs of $81,000 for the quarter ended March 31, 2016, or 0.01% of average loans outstanding on an annualized basis.

Non-accrual loans were $13.7 million, or 0.34% of total loans outstanding, at March 31, 2017, up $250,000, or 1.9%, from December 31, 2016 and down $17.0 million, or 55.4%, from March 31, 2016. The reductions in non-accrual loans from March 31, 2016 were primarily due to the sale at foreclosure during the third quarter of 2016 of an $11.5 million multi-family construction loan in Boston that was originally placed on non-accrual status during the second quarter of 2015, along with reductions across all categories of non-accrual loans. Non-performing assets were $13.7 million, or 0.30% of total assets, at March 31, 2017, compared to $13.4 million, or 0.30% of total assets, at December 31, 2016 and $31.3 million, or 0.84% of total assets, at March 31, 2016.

Mr. Gavegnano commented, "Our asset quality continued to be outstanding during the first quarter of 2017, as our delinquent and non-performing loans remained at historically low levels and net loan charge-offs were near zero. We remain vigilant in maintaining our strong loan underwriting, credit monitoring and loan collection processes."

Non-interest income was $4.1 million for the quarter ended March 31, 2017, down from $5.6 million for the quarter ended December 31, 2016 and up from $2.7 million for the quarter ended March 31, 2016. Non-interest income decreased $1.5 million, or 27.5%, as compared to the quarter ended December 31, 2016, primarily due to decreases of $1.1 million in gain on sales of securities, net, $179,000 in customer service fees and $214,000 in loan fees. As compared to the quarter ended March 31, 2016, non-interest income increased $1.4 million, or 51.3%, primarily due to increases of $1.5 million in gain on sales of securities, net, and $105,000 in customer service fees, partially offset by a decrease of $244,000 in loan fees.

Non-interest expenses were $21.9 million, or 1.94% of average assets for the quarter ended March 31, 2017, compared to $19.8 million, or 1.84% of average assets for the quarter ended December 31, 2016 and $19.2 million, or 2.13% of average assets for the quarter ended March 31, 2016. Non-interest expenses increased $2.1 million, or 10.6%, as compared to the quarter ended December 31, 2016, primarily due to increases of $1.5 million in salaries and employee benefits, $142,000 in occupancy and equipment expenses, $166,000 in professional services and $210,000 in deposit insurance premiums. As compared to the quarter ended March 31, 2016, non-interest expenses increased $2.6 million, or 13.8%, primarily due to increases of $1.2 million in salaries and employee benefits, $539,000 in occupancy and equipment expenses, $122,000 in data processing, $141,000 in marketing and advertising, $522,000 in professional services and $239,000 in deposit insurance premiums. The increases in salaries and employee benefits expenses reflect annual increases in employee compensation and health benefits during the three months ended March 31, 2017.  In addition, the increases in salaries and employee benefits, occupancy and equipment expenses and other general and administrative expenses include costs associated with the opening of two new branches, the introduction of our new mobile branch in 2016 and an expansion of our regulatory compliance staff.  Professional services increased primarily due to additional costs related to regulatory compliance projects.  The Company's efficiency ratio was 61.02% for the quarter ended March 31, 2017 compared to 54.33% for the quarter ended December 31, 2016 and 62.01% for the quarter ended March 31, 2016.

Mr. Gavegnano added, "The rise in our efficiency ratio to 61.02% for the first quarter of 2017 was largely due to increases in professional fees and employee compensation costs associated with initiatives undertaken in the fourth quarter of last year to enhance our regulatory compliance infrastructure as we meet the needs of our growing bank. Based on our expectations for steadily rising net interest income driven by strong loan demand and prudent management of recurring non-interest expenses, we believe our operating efficiency will return to an improving trend in the coming periods."

The Company recorded a provision for income taxes of $4.7 million for the quarter ended March 31, 2017, reflecting an effective tax rate of 33.6%, compared to $6.6 million, or an effective tax rate of 37.0%, for the quarter ended December 31, 2016,  and $3.3 million, or an  effective tax rate of 30.6%, for the quarter ended March 31, 2016. The changes in the income tax provision and effective tax rate were primarily due to changes in the components of pre-tax income.

Total assets were $4.639 billion at March 31, 2017, an increase of $202.7 million, or 4.6%, from $4.436 billion at December 31, 2016.  Net loans were $4.021 billion at March 31, 2017, an increase of $122.1 million, or 3.1%, from December 31, 2016. Loan originations totaled $426.0 million during the quarter ended March 31, 2017. The net increase in loans for the three months ended March 31, 2017 was primarily due to increases of $64.6 million in construction loans, $24.2 million in multi-family loans, $14.9 million in commercial real estate loans, $11.6 million in one- to four-family loans and $9.3 million in commercial and industrial loans. Cash and due from banks was $327.7 million at March 31, 2017, an increase of $91.2 million, or 38.6%, from December 31, 2016. Securities available for sale were $59.1 million at March 31, 2017, a decrease of $8.6 million, or 12.7%, from $67.7 million at December 31, 2016.

Total deposits were $3.657 billion at March 31, 2017, an increase of $180.8 million, or 5.2%, from $3.476 billion at December 31, 2016. Core deposits, which exclude certificate of deposits, increased $168.8 million, or 7.2%, during the three months ended March 31, 2017 to $2.516 billion, or 68.8% of total deposits. Total borrowings were $334.8 million, an increase of $12.3 million, or 3.8%, from December 31, 2016.

Total stockholders' equity increased $8.9 million, or 1.5%, to $616.2 million at March 31, 2017 from $607.3 million at December 31, 2016. The increase for the three months ended March 31, 2017 was primarily due to net income of $9.2 million, $1.5 million related to stock-based compensation plans and $228,000 in accumulated other comprehensive income, reflecting an increase in the fair value of available-for-sale securities, partially offset by a dividend of $0.04 per share totaling $2.1 million. Stockholders' equity to assets was 13.28% at March 31, 2017, compared to 13.69% at December 31, 2016. Book value per share increased to $11.49 at March 31, 2017 from $11.33 at December 31, 2016. Tangible book value per share increased to $11.23 at March 31, 2017 from $11.08 at December 31, 2016. Market price per share decreased $0.60, or 3.2%, to $18.30 at March 31, 2017 from $18.90 at December 31, 2016. At March 31, 2017, the Company and the Bank continued to exceed all regulatory capital requirements.

As of the quarter ended March 31, 2017, the Company had repurchased  2,059,611 shares of its stock at an average price of $13.71 per share, or 75.2% of the 2,737,334 shares authorized for repurchase under the Company's repurchase program as adopted in August 2015. The Company did not repurchase any of its shares during the quarter ended March 31, 2017.

Meridian 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 31 full-service locations and one mobile location in the greater Boston metropolitan area. We offer a variety of deposit and loan products to individuals and businesses located in our primary market, which consists of Essex, Middlesex, Norfolk 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 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 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 BANCORP, INC. AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEETS 
(Unaudited)
 
        March 31, 2017     December 31, 2016      March 31, 2016     
          (Dollars in thousands)          
ASSETS                          
Cash and due from banks   $ 327,663     $ 236,423     $ 154,122    
Certificates of deposit     80,323       80,323       92,675    
Securities available for sale, at fair value     59,058       67,663       132,115    
Federal Home Loan Bank stock, at cost     18,629       18,175       13,021    
Loans held for sale     1,022       3,944       1,194    
Loans:                          
One- to four-family     544,025       532,450       455,438    
Home equity lines of credit     42,642       42,913       47,807    
Multi-family     587,180       562,948       430,871    
Commercial real estate     1,791,468       1,776,601       1,411,410    
Construction     567,352       502,753       413,660    
Commercial and industrial     524,723       515,430       477,450    
Consumer     9,710       9,712       9,832    
Total loans     4,067,100       3,942,807       3,246,468    
Allowance for loan losses     (41,764)       (40,149)       (34,390)    
Net deferred loan origination fees     (4,593)       (3,990)       (4,342)    
Loans, net     4,020,743       3,898,668       3,207,736    
Bank-owned life insurance     41,033       40,745       39,859    
Premises and equipment, net     41,099       41,427       40,733    
Accrued interest receivable     10,070       10,381       8,831    
Deferred tax asset, net     21,471       21,461       20,868    
Goodwill     13,687       13,687       13,687    
Other assets     3,914       3,105       4,614    
Total assets   $ 4,638,712     $ 4,436,002     $ 3,729,455    
                           
LIABILITIES AND STOCKHOLDERS' EQUITY                          
Deposits:                          
Non interest-bearing demand deposits   $ 439,315     $ 431,222     $ 388,731    
NOW deposits     748,465       630,413       360,237    
Money market deposits     1,005,534       980,344       880,186    
Regular savings and other deposits     323,136       305,632       297,806    
Certificates of deposit     1,140,183       1,128,226       984,459    
Total deposits     3,656,633       3,475,837       2,911,419    
Short-term borrowings                    
Long-term debt     334,827       322,512       211,426    
Accrued expenses and other liabilities     31,074       30,356       23,926    
Total liabilities     4,022,534       3,828,705       3,146,771    
Stockholders' equity:                          
Preferred stock, $0.01 par value, 50,000,000 shares                          
authorized; none issued                    
Common stock, $0.01 par value, 100,000,000 shares                          
authorized; 53,630,841, 53,596,105 and 53,895,870 shares                          
issued at March 31, 2017, December 31, 2016 and March 31,                          
2016, respectively     536       536       539    
Additional paid-in capital     391,316       390,065       391,399    
Retained earnings     241,472       234,290       212,158    
Accumulated other comprehensive income (loss)     2,034       1,806       (1,350)    
Unearned compensation - ESOP, 2,648,359, 2,678,800 and                          
2,770,123 shares at March 31, 2017, December 31, 2016 and                          
March 31, 2016, respectively     (19,180)       (19,400)       (20,062)    
Total stockholders' equity     616,178       607,297       582,684    
Total liabilities and stockholders' equity   $ 4,638,712     $ 4,436,002     $ 3,729,455    
                           

MERIDIAN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
                   
  Three Months Ended
    March 31, 2017     December 31, 2016     March 31, 2016    
                     
    (Dollars in thousands, except per share amounts)  
Interest and dividend income:                    
Interest and fees on loans   $ 40,489   $ 40,172   $ 33,097  
Interest on debt securities:                    
Taxable     119     159     266  
Tax-exempt     10     19     33  
Dividends on equity securities     277     346     400  
Interest on certificates of deposit     212     115     170  
Other interest and dividend income     645     438     218  
Total interest and dividend income     41,752     41,249     34,184  
Interest expense:                    
Interest on deposits     7,419     6,962     5,228  
Interest on short-term borrowings             6  
Interest on long-term debt     980     868     571  
Total interest expense     8,399     7,830     5,805  
Net interest income     33,353     33,419     28,379  
Provision for loan losses     1,619     1,304     1,066  
Net interest income, after provision for loan losses     31,734     32,115     27,313  
Non-interest income:                    
Customer service fees     2,052     2,231     1,947  
Loan fees     68     282     312  
Mortgage banking gains, net     90     125     70  
Gain on sales of securities, net     1,574     2,627     59  
Income from bank-owned life insurance     288     294     302  
Other income         55     2  
Total non-interest income     4,072     5,614     2,692  
Non-interest expenses:                    
Salaries and employee benefits     13,675     12,167     12,513  
Occupancy and equipment     3,023     2,881     2,484  
Data processing     1,379     1,331     1,257  
Marketing and advertising     854     973     713  
Professional services     1,135     969     613  
Foreclosed real estate              
Deposit insurance     691     481     452  
Other general and administrative     1,120     976     1,198  
Total non-interest expenses     21,877     19,778     19,230  
Income before income taxes     13,929     17,951     10,775  
Provision for income taxes     4,685     6,642     3,298  
Net income   $ 9,244   $ 11,309   $ 7,477  
                     
Earnings per share:                    
Basic   $ 0.18   $ 0.22   $ 0.14  
Diluted   $ 0.18   $ 0.22   $ 0.14  
Weighted average shares:                    
Basic     50,949,634   50,940,037       51,569,683  
Diluted     52,526,737   52,102,511       52,663,921  
                     

MERIDIAN BANCORP, INC. AND SUBSIDIARIES
NET INTEREST INCOME ANALYSIS
(Unaudited)
 
  Three Months Ended
  March 31, 2017 December 31, 2016 March 31, 2016
      AverageBalance     Interest (1)     YieldCost(1)(6)       AverageBalance     Interest (1)   YieldCost(1)(6)   AverageBalance     Interest (1)     YieldCost(1)(6)
                            (Dollars in thousands)                    
Assets:                                                        
Interest-earning assets:                                                        
Loans (2)   $ 4,000,857   $ 41,690     4.23 %   $ 3,792,961   $ 41,394   4.34 % $ 3,146,449   $ 34,104     4.36 %
Securities and certificates of deposit     145,841     725     2.02       147,509     778   2.1     231,604     1,034     1.8  
Other interest-earning assets (3)     243,478     645     1.07       244,241     438   0.71     123,476     218     0.71  
Total interest-earning assets     4,390,176     43,060     3.98       4,184,711     42,610   4.05     3,501,529     35,356     4.06  
Noninterest-earning assets     111,757                   113,336               114,476              
Total assets   $ 4,501,933                 $ 4,298,047             $ 3,616,005              
Liabilities and stockholders' equity:                                                        
Interest-bearing liabilities:                                                        
NOW deposits   $ 654,977   $ 1,219     0.75     $ 577,419     1,025   0.71   $ 338,517   $ 500     0.59  
Money market deposits     1,008,392     2,230     0.9       907,157     1,955   0.86     873,774     1,745     0.8  
Regular savings and other deposits     307,940     108     0.14       301,832     108   0.14     290,463     103     0.14  
Certificates of deposit     1,134,329     3,862     1.38       1,139,816     3,874   1.35     936,674     2,880     1.24  
Total interest-bearing deposits     3,105,638     7,419     0.97       2,926,224     6,962   0.95     2,439,428     5,228     0.86  
Borrowings     330,604     980     1.2       325,421     868   1.06     199,779     577     1.16  
Total interest-bearing liabilities     3,436,242     8,399     0.99       3,251,645     7,830   0.96     2,639,207     5,805     0.88  
Noninterest-bearing demand deposits     425,353                   416,727               368,038              
Other noninterest-bearing liabilities     27,312                   26,977               23,312              
Total liabilities     3,888,907                   3,695,349               3,030,557              
Total stockholders' equity     613,026                   602,698               585,448              
Total liabilities and stockholders'                                                        
equity   $ 4,501,933                 $ 4,298,047             $ 3,616,005              
Net interest-earning assets   $ 953,934                 $ 933,066             $ 862,322              
Fully tax-equivalent net interest income           34,661                   34,780               29,551        
Less: tax-equivalent adjustments           (1,308)                   (1,361)               (1,172)        
Net interest income         $ 33,353                 $ 33,419             $ 28,379        
Interest rate spread (1)(4)                 2.99 %               3.09 %               3.18 %
Net interest margin (1)(5)                 3.2 %               3.31 %               3.39 %
Average interest-earning assets to                                                        
average                                                        
interest-bearing liabilities           127.76 %                 128.7               132.67 %      
Supplemental Information:                                                        
Total deposits, including noninterest-                                                        
bearing                                                        
demand deposits   $ 3,530,991   $ 7,419     0.85 %   $ 3,342,951   $ 6,962   0.83 % $ 2,807,466   $ 5,228     0.75 %
Total deposits and borrowings, including                                                        
noninterest-bearing demand deposits   $ 3,861,595   $ 8,399     0.88 %   $ 3,668,372   $ 7,830   0.85 % $ 3,007,245   $ 5,805     0.78 %
 
 
(1) Income on debt securities, equity securities and revenue bonds included in commercial real estate loans, as well as resulting yields, interest rate spread and net interest
margin, are presented on a tax-equivalent basis. The tax-equivalent adjustments are deducted from tax-equivalent net interest income to agree to amounts reported in the
consolidated statements of net income. For the three months ended March 31, 2017, December 31, 2016 and March 31, 2016, yields on loans before tax-equivalent
adjustments were 4.10%, 4.21% and 4.23%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.71%, 1.72% and 1.51%,
respectively, and yield on total interest-earning assets before tax-equivalent adjustments were 3.86%, 3.92% and 3.93%, respectively. Interest rate spread before tax-
equivalent adjustments for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016 was 2.87%, 2.96% and 3.05%, respectively, while net interest
margin before tax-equivalent adjustments for the three months ended March 31, 2017, December 31, 2016 and March 31, 2016 was 3.08%, 3.18% and 3.26%, respectively.
(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 tax-equivalent 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.
 
 

MERIDIAN BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
 
  Three Months Ended   
  March 31, 2017   December 31, 2016   March 31, 2016   
                         
Key Performance Ratios                         
Return on average assets (1)    0.82 %     1.05 %     0.83 %  
Return on average equity (1)    6.03       7.51       5.11    
Interest rate spread  (1) (2)    2.99       3.09       3.18    
Net interest margin  (1) (3)    3.2       3.31       3.39    
Non-interest expense to average assets  (1)    1.94       1.84       2.13    
Efficiency ratio (4)    61.02       54.33       62.01    
                         
  March 31, 2017   December 31, 2016    March 31, 2016   
                         
  (Dollars in thousands)   
Asset Quality                         
Non-accrual loans:                         
One- to four-family  $ 8,761     $ 8,487     $ 9,662    
Home equity lines of credit    672       674       1,983    
Commercial real estate    2,792       2,807       3,686    
Construction    815       815       14,612    
Commercial and industrial    646       653       745    
Consumer                   
Total non-accrual loans    13,686       13,436       30,688    
Foreclosed assets                638    
Total non-performing assets  $ 13,686     $ 13,436     $ 31,326    
                         
Allowance for loan losses/total loans    1.03 %     1.02 %     1.06 %  
Allowance for loan losses/non-accrual loans    305.16       298.82       112.06    
Non-accrual loans/total loans    0.34       0.34       0.95    
Non-accrual loans/total assets    0.3       0.3       0.82    
Non-performing assets/total assets    0.3       0.3       0.84    
                         
Capital and Share Related                         
Stockholders' equity to total assets    13.28 %     13.69 %     15.62 %  
Book value per share  $ 11.49     $ 11.33     $ 10.81    
Tangible book value per share  $ 11.23     $ 11.08     $ 10.56    
Market value per share  $ 18.3     $ 18.9     $ 13.92    
Shares outstanding  53,630,841      53,596,105      53,895,870     
 
 
(1) Annualized. 
(2) Interest rate spread represents the difference between the tax-equivalent yield on interest-earning assets and the cost of interest-
bearing liabilities.
(3) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets. 
(4) The efficiency ratio is a non-GAAP measure representing non-interest expense divided by the sum of net interest income and
non-interest income excluding gains or losses on sales of securities. The efficiency ratio is a common measure used by banks to
understand expenses related to the generation of revenue. We have removed gains or losses on sales of securities as management
deems them to be discretionary and not representative of operating performance.
 
Contact: Richard J. Gavegnano, Chairman, President and Chief Executive Officer(978) 977-2211

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