Meridian Bancorp, Inc. (the “Company” or “Meridian”) (NASDAQ:EBSB),
the holding company for East Boston Savings Bank (the “Bank”),
announced net income of $14.1 million, or $0.27 per diluted share,
for the quarter ended June 30, 2018, up from $12.0 million, or
$0.23 per diluted share, for the quarter ended March 31, 2018
and $11.3 million, or $0.22 per diluted share, for the quarter
ended June 30, 2017. For the six months ended June 30,
2018, net income was $26.1 million, or $0.49 per diluted share, up
from $20.6 million, or $0.39 per diluted share, for the six months
ended June 30, 2017. Net income for the quarter and six months
ended June 30, 2018 reflects a reduction in the statutory federal
income tax rate to 21% from 35% effective January 1, 2018 related
to enactment of the Tax Cuts and Jobs Act (the “Tax Act”) in
December 2017. The Company’s return on average assets was 1.01% for
the quarter ended June 30, 2018, up from 0.90% for the quarter
ended March 31, 2018 and 0.97% for the quarter ended
June 30, 2017. For the six months ended June 30, 2018,
the Company’s return on average assets was 0.96%, up from 0.90% for
the six months ended June 30, 2017. The Company’s return on
average equity was 8.50% for the quarter ended June 30, 2018,
up from 7.35% for the quarter ended March 31, 2018 and 7.28%
for the quarter ended June 30, 2017. For the six months
ended June 30, 2018, the Company’s return on average equity
was 7.93%, up from 6.66% for the six months ended June 30,
2017.
Richard J. Gavegnano, Chairman, President and
Chief Executive Officer, said, “I am proud to report record net
income of $14.1 million for the second quarter of 2018, up 17% from
the first quarter of 2018 and up 24% from the second quarter of
2017, and $26.1 million for the first half of 2018, up 27% from the
first half of 2017. Although our earnings are enhanced this year by
income tax expense reductions resulting from the Tax Act’s lower
federal income tax rate, our pre-tax income also rose 7% during the
first half, reflecting an 18% increase in net interest income. Our
pre-tax income would have increased 14% from the first quarter of
2018, 8% from the second quarter of 2017 and 17% from the first
half of 2017 if changes in the fair value of marketable equity
securities required to be recognized beginning in 2018 and gains on
sale of securities for these periods as reported in non-interest
income were excluded.”
The Company’s net interest income was $41.0
million for the quarter ended June 30, 2018, up $1.2 million
or 3.0%, from the quarter ended March 31, 2018 and $5.6
million, or 15.8%, from the quarter ended June 30, 2017. The
interest rate spread and net interest margin on a tax-equivalent
basis were 2.81% and 3.07%, respectively, for the quarter ended
June 30, 2018 compared to 2.92% and 3.16%, respectively, for
the quarter ended March 31, 2018 and 3.01% and 3.24%,
respectively, for the quarter ended June 30, 2017. For the six
months ended June 30, 2018, net interest income increased
$12.1 million, or 17.6%, to $80.9 million from the six months ended
June 30, 2017. The net interest rate spread and net
interest margin on a tax-equivalent basis were 2.87% and 3.11%,
respectively, for the six months ended June 30, 2018 compared
to 3.01% and 3.22%, respectively, for the six months ended
June 30, 2017. The increases in net interest income were
primarily due to growth in average loan balances and yields,
partially offset by increases in the average balances of total
deposits and borrowings and the cost of funds for the quarter and
six months ended June 30, 2018 compared to the respective prior
periods. The interest rate spread and net interest margin on a
tax-equivalent basis for the quarter and six months ended June 30,
2018 reflect the reduction in the federal income tax rate to 21%
from 35%.
Total interest and dividend income increased to
$55.8 million for the quarter ended June 30, 2018, up $3.8
million, or 7.4%, from the quarter ended March 31, 2018 and
$11.3 million, or 25.5%, from the quarter ended June 30, 2017,
primarily due to growth in the Company’s average loan balances to
$5.043 billion and yields on loans to 4.33%. The Company’s yield on
interest-earning assets on a tax-equivalent basis was 4.16% for the
quarter ended June 30, 2018, up five basis points from the
quarter ended March 31, 2018 and up 13 basis points from the
quarter ended June 30, 2017. For the six months ended
June 30, 2018, the Company’s total interest and dividend income
increased $21.6 million, or 25.0%, to $107.8 million from the six
months ended June 30, 2017 primarily due to growth in the
average loan balances of $819.6 million, or 20.0%, to $4.911
billion, and by an increase in the yield on loans on a
tax-equivalent basis of seven basis points to 4.31% for the six
months ended June 30, 2018 compared to the six months ended
June 30, 2017. The Company’s yield on interest-earning assets
on a tax-equivalent basis increased 13 basis points to 4.14% for
the six months ended June 30, 2018 compared to the same period in
2017. The yields on loans and interest-earning assets on a
tax-equivalent basis for the quarter and six months ended June 30,
2018 also reflect the reduction in the federal income tax rate to
21% from 35%.
Total interest expense increased to $14.8
million for the quarter ended June 30, 2018, up $2.6 million,
or 21.8%, from the quarter ended March 31, 2018 and $5.7
million, or 63.5%, from the quarter ended June 30, 2017.
Interest expense on deposits increased to $12.8 million for the
quarter ended June 30, 2018, up $2.2 million, or 21.3%, from
the quarter ended March 31, 2018 and $4.8 million, or 60.7%,
from the quarter ended June 30, 2017 primarily due to growth
in average total deposits to $4.280 billion and increases in the
cost of average total deposits to 1.19% from 1.04% for the quarter
ended March 31, 2018, and 0.87% for the quarter ended
June 30, 2017. Interest expense on borrowings increased to
$2.0 million for the quarter ended June 30, 2018, up $407,000,
or 24.8%, from the quarter ended March 31, 2018 and $931,000,
or 83.3%, from the quarter ended June 30, 2017 primarily due
to growth in average total borrowings to $591.9 million. The
Company’s total cost of funds was 1.22% for the quarter ended
June 30, 2018, up 16 basis points from the quarter ended
March 31, 2018 and 32 basis points from the quarter ended
June 30, 2017. Total interest expense increased $9.5 million,
or 54.4%, to $27.0 million for the six months ended June 30,
2018 from the six months ended June 30, 2017. Interest expense
on deposits increased $7.9 million, or 51.5%, to $23.3 million for
the six months ended June 30, 2018 from the six months ended
June 30, 2017 due to the growth in average total deposits of
$598.6 million, or 16.6%, to $4.198 billion and an increase in the
cost of average total deposits of 26 basis points to 1.12%.
Interest expense on borrowings increased $1.6 million, or 75.9%, to
$3.7 million for the six months ended June 30, 2018 from the
six months ended June 30, 2017 due to the growth in average
total borrowings of $213.1 million, or 62.0%, to $556.7 million and
an increase in the cost of average total borrowings of 11 basis
points to 1.34%. The Company’s cost of funds increased 25 basis
points to 1.14% for the six months ended June 30, 2018
compared to the six months ended June 30, 2017.
Mr. Gavegnano noted, “Our strong loan pipeline
continues to be the key driver of our rising net interest income.
Our net loan growth was $215 million, or 4%, for the second quarter
of 2018, $492 million, or 11%, for the first half of 2018, and $859
million, or 20%, since June 30, 2017. Our yield on loans also rose
seven basis points to 4.33% for the second quarter of 2018 and
seven basis points to 4.31% for the first half of 2018 from the
same periods last year. This loan growth and improvement in our
loan yield minimized the effect of the rise in our cost of funds
and the lower federal income tax rate under the Tax Act on our net
interest margin on a tax-equivalent basis, which declined to 3.07%
for the second quarter and 3.11% for the first half of 2018.
Without the tax rate change, our yields on loans and interest
earning assets, the interest rate spread and the net interest
margin on a tax-equivalent basis would have been four to five basis
points higher than reported for 2018 periods.”
The Company's provision for loan losses was $1.9
million for the quarter ended June 30, 2018, down $319,000
from the quarter ended March 31, 2018 and up $373,000 from the
quarter ended June 30, 2017. The allowance for loan losses was
$49.4 million or 0.96% of total loans at June 30, 2018,
compared to $47.5 million or 0.96% of total loans at March 31,
2018, $45.2 million or 0.97% of total loans at December 31,
2017, and $43.2 million or 1.00% of total loans at June 30,
2017. 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 improvements in
asset quality trends.
Net recoveries totaled $43,000 for the quarter
ended June 30, 2018, compared to net recoveries of $114,000
for the quarter ended March 31, 2018 and net charge-offs of
$32,000 for the quarter ended June 30, 2017. For the six
months ended June 30, 2018, net recoveries totaled $157,000,
or 0.01% of average loans outstanding on an annualized basis
compared to net charge-offs of $36,000 for the six months ended
June 30, 2017.
Non-accrual loans were $7.9 million, or 0.15% of
total loans outstanding, at June 30, 2018; down $126,000, or
1.6%, from March 31, 2018; down $458,000, or 5.5%, from
December 31, 2017; and down $3.6 million, or 31.1%, from
June 30, 2017. Non-performing assets were $7.9 million, or
0.14% of total assets, at June 30, 2018, compared to $8.0
million, or 0.15% of total assets, at March 31, 2018, $8.4
million, or 0.16% of total assets at December 31, 2017, and
$11.5 million, or 0.24% of total assets, at June 30, 2017.
Non-interest income was $2.9 million for the
quarter ended June 30, 2018, up from $2.3 million for the
quarter ended March 31, 2018 and down from $5.0 million for
the quarter ended June 30, 2017. Non-interest income increased
$525,000, or 22.5%, as compared to the quarter ended March 31,
2018, primarily due to an increase of $925,000 in the gain on
equity securities, net, partially offset by a decrease of $453,000
in loan fees. As compared to the quarter ended June 30, 2017,
non-interest income decreased $2.2 million, or 43.2%, primarily due
to decreases of $1.8 million in loan fee income and $808,000 in
gain on sales of securities available for sale, net, partially
offset by increases of $388,000 in gain on equity securities, net.
For the six months ended June 30, 2018, non-interest income
decreased $3.9 million, or 43.0%, to $5.2 million from $9.1 million
for the six months ended June 30, 2017, primarily due to a
$2.4 million decrease in gain on sales of securities available for
sale, net and a $1.6 million decrease in loan fees. The decreases
in loan fees are primarily due to $1.3 million of loan swap fee
income recognized in the second quarter of 2017.
Non-interest expenses were $23.5 million, or
1.69% of average assets for the quarter ended June 30, 2018,
compared to $24.7 million, or 1.86% of average assets for the
quarter ended March 31, 2018 and $21.4 million, or 1.83% of
average assets for the quarter ended June 30, 2017.
Non-interest expenses decreased $1.2 million, or 5.0%, compared to
the quarter ended March 31, 2018, due primarily to decreases of
$956,000 in salaries and employee benefits and $514,000 in
occupancy and equipment, partially offset by an increase of
$277,000 in other general and administrative expenses. Non-interest
expenses increased $2.1 million, or 9.6%, compared to the quarter
ended June 30, 2017, due primarily to increases of $1.7
million in salaries and employee benefits, $276,000 in other
general and administrative expenses, and $179,000 in data
processing, partially offset by a decrease of $106,000 in
professional services. For the six months ended June 30,
2018, non-interest expenses increased $4.9 million, or 11.3%, to
$48.2 million from $43.3 million for the six months ended
June 30, 2017, due to increases of $3.4 million in salaries
and employee benefits, $505,000 in occupancy and equipment
expenses, $483,000 in data processing expenses, $426,000 in other
general and administrative expenses, and $166,000 in marketing and
advertising expenses, partially offset by a $276,000 decrease in
professional services. The increases in salaries and employee
benefits expenses reflect annual increases in employee compensation
and health benefits during the first quarter of 2018. In
addition, the increases in salaries and employee benefits, and
occupancy and equipment expenses and data processing include costs
associated with the expansion of our branch and support staff,
including two branches acquired from Meetinghouse Bank on December
29, 2017, one new branch opened in the first quarter of 2018 and
three new branch openings planned for later in 2018. Other general
and administrative expenses reflect core deposit intangible
amortization of $147,000 for the quarter ended June 30, 2018 and
$295,000 for the six months ended June 30, 2018. The Company’s
efficiency ratio was 53.89% for the quarter ended June 30,
2018 compared to 57.62% for the quarter ended March 31, 2018
and 53.95% for the quarter ended June 30, 2017. For the six
months ended June 30, 2018, the efficiency ratio was 55.74%
compared to 57.31% for the six months ended June 30, 2017.
Mr. Gavegnano added, “The improvement in our
efficiency ratio to 53.89% for the second quarter of 2018 from
57.62% for the first quarter of 2018 was largely due to the 3% rise
in net interest income coupled with the 5% decrease in non-interest
expenses. Declines in our non-interest expenses in the second
quarter of 2018 reflected payroll tax and 401(k) retirement plan
employer-matching expenses incurred in the first quarter associated
with the January 2018 payment of 2017 bonuses to the Bank’s
employees and overhead cost savings following the first quarter
integration of Meetinghouse Bank. Our investments in franchise
expansion continue as we prepare for the opening of new branches in
Boston’s Brigham Circle, Lynnfield and Burlington later in the year
and evaluate additional opportunities within our metropolitan
Boston market area. We believe such investments are vital to
meeting our organic growth and financial performance goals.”
The Company recorded a provision for income
taxes of $4.5 million for the quarter ended June 30, 2018,
reflecting an effective tax rate of 24.3%, compared to $3.3
million, or an effective tax rate of 21.6%, for the quarter ended
March 31, 2018, and $6.2 million, or an effective tax rate of
35.5%, for the quarter ended June 30, 2017. For the six months
ended June 30, 2018, the provision for income taxes was $7.8
million, reflecting an effective tax rate of 23.1%, compared to
$10.9 million, or an effective tax rate of 34.7%, for the six
months ended June 30, 2017. The reductions in the provision
for income taxes and the effective tax rate for 2018 primarily
reflect the decrease in the statutory federal income tax rate to
21% from 35% effective January 1, 2018 as a result of the Tax
Act.
Total assets were $5.678 billion at
June 30, 2018, up $216.9 million, or 4.0%, from $5.461 billion
at March 31, 2018 and $378.1 million, or 7.1%, from $5.299
billion at December 31, 2017. Net loans were $5.115
billion at June 30, 2018, up $214.5 million, or 4.4%, from
March 31, 2018, and up $492.1 million, or 10.6%, from
December 31, 2017. Loan originations totaled $492.9 million
during the quarter ended June 30, 2018 and $842.6 million
during the six months ended June 30, 2018. The net increase in
loans for the six months ended June 30, 2018 was primarily due
to increases of $323.1 million in commercial real estate loans,
$131.9 million in multi-family loans, $43.3 million in commercial
and industrial loans, and $32.0 million in one- to four-family
loans. Cash and due from banks was $329.6 million at
June 30, 2018, a decrease of $73.1 million, or 18.2% from
December 31, 2017. Securities, at fair value, were $33.9
million at June 30, 2018, a decrease of $4.5 million, or
11.7%, from $38.4 million at December 31, 2017.
Total deposits were $4.390 billion at
June 30, 2018, an increase of $200.2 million, or 4.8%, from
$4.189 billion at March 31, 2018 and an increase of $281.7
million, or 6.9%, from $4.108 billion at December 31,
2017. Core deposits, which exclude certificate of deposits,
increased $81.9 million, or 3.0%, during the six months ended
June 30, 2018 to $2.819 billion, or 64.2% of total deposits.
Total borrowings were $591.7 million, up $9.1 million, or 1.6%,
from March 31, 2018 and up $78.2 million, or 15.2%, from
December 31, 2017.
Total stockholders’ equity increased $9.1
million, or 1.4%, to $664.7 million at June 30, 2018 from
$655.6 million at March 31, 2018, and $18.3 million, or 2.8%,
from $646.4 million at December 31, 2017. The increase for the
six months ended June 30, 2018 was primarily due to net income
of $26.1 million and $3.7 million related to stock-based
compensation plans, partially offset by the repurchase of 314,010
shares of the Company’s common stock at a total cost of $6.1
million, and dividends of $0.10 per share totaling $5.1 million.
Stockholders’ equity to assets was 11.71% at June 30, 2018,
compared to 12.01% at March 31, 2018 and 12.20% at
December 31, 2017. Book value per share increased to $12.33 at
June 30, 2018 from $11.96 at December 31, 2017. Tangible
book value per share increased to $11.91 at June 30, 2018 from
$11.54 at December 31, 2017. Market price per share decreased
$1.45, or 7.0%, to $19.15 at June 30, 2018 from $20.60 at
December 31, 2017. At June 30, 2018, the Company and the
Bank continued to exceed all regulatory capital requirements.
During the quarter ended June 30, 2018, the
Company repurchased 214,010 shares of its common stock at an
average price of $18.99 per share. As of June 30, 2018, the
Company had repurchased 2,373,621 shares of its stock at an average
price of $14.45 per share, or 86.7% of the 2,737,334 shares
authorized for repurchase under the Company’s repurchase program
adopted in August 2015.
Mr. Gavegnano concluded, “With 363,713 shares
remaining for repurchase under our current program, we will
consider buying additional shares when conditions are determined to
be favorable.”
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 34 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018 |
|
|
March 31, 2018 |
|
|
December 31, 2017 |
|
|
June 30, 2017 |
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
329,588 |
|
|
$ |
316,372 |
|
|
$ |
402,687 |
|
|
$ |
234,776 |
|
Certificates of
deposit |
|
|
23,885 |
|
|
|
44,133 |
|
|
|
69,326 |
|
|
|
85,323 |
|
Securities available
for sale, at fair value |
|
|
18,437 |
|
|
|
19,507 |
|
|
|
38,364 |
|
|
|
52,362 |
|
Equity securities, at
fair value |
|
|
15,428 |
|
|
|
14,722 |
|
|
|
— |
|
|
|
— |
|
Federal Home Loan Bank
stock, at cost |
|
|
29,546 |
|
|
|
27,572 |
|
|
|
24,947 |
|
|
|
22,579 |
|
Loans held for
sale |
|
|
1,052 |
|
|
|
1,136 |
|
|
|
3,772 |
|
|
|
2,257 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to
four-family |
|
|
635,708 |
|
|
|
614,043 |
|
|
|
603,680 |
|
|
|
552,762 |
|
Home
equity lines of credit |
|
|
45,812 |
|
|
|
45,193 |
|
|
|
48,393 |
|
|
|
42,599 |
|
Multi-family |
|
|
911,562 |
|
|
|
858,894 |
|
|
|
779,637 |
|
|
|
695,602 |
|
Commercial real estate |
|
|
2,386,926 |
|
|
|
2,253,014 |
|
|
|
2,063,781 |
|
|
|
1,927,572 |
|
Construction |
|
|
610,946 |
|
|
|
638,751 |
|
|
|
641,306 |
|
|
|
517,471 |
|
Commercial and industrial |
|
|
568,897 |
|
|
|
533,056 |
|
|
|
525,604 |
|
|
|
557,443 |
|
Consumer |
|
|
10,455 |
|
|
|
10,466 |
|
|
|
10,761 |
|
|
|
10,058 |
|
Total
loans |
|
|
5,170,306 |
|
|
|
4,953,417 |
|
|
|
4,673,162 |
|
|
|
4,303,507 |
|
Allowance
for loan losses |
|
|
(49,401 |
) |
|
|
(47,488 |
) |
|
|
(45,185 |
) |
|
|
(43,229 |
) |
Net
deferred loan origination fees |
|
|
(6,045 |
) |
|
|
(5,593 |
) |
|
|
(5,179 |
) |
|
|
(4,443 |
) |
Loans,
net |
|
|
5,114,860 |
|
|
|
4,900,336 |
|
|
|
4,622,798 |
|
|
|
4,255,835 |
|
Bank-owned life
insurance |
|
|
40,885 |
|
|
|
40,608 |
|
|
|
40,336 |
|
|
|
41,325 |
|
Premises and equipment,
net |
|
|
41,584 |
|
|
|
41,415 |
|
|
|
40,967 |
|
|
|
40,621 |
|
Accrued interest
receivable |
|
|
12,699 |
|
|
|
12,281 |
|
|
|
12,902 |
|
|
|
11,068 |
|
Deferred tax asset,
net |
|
|
15,896 |
|
|
|
15,737 |
|
|
|
15,244 |
|
|
|
21,728 |
|
Goodwill |
|
|
19,638 |
|
|
|
19,638 |
|
|
|
19,638 |
|
|
|
13,687 |
|
Core deposit
intangible |
|
|
2,948 |
|
|
|
3,096 |
|
|
|
3,243 |
|
|
|
— |
|
Other assets |
|
|
11,142 |
|
|
|
4,145 |
|
|
|
5,231 |
|
|
|
5,853 |
|
Total
assets |
|
$ |
5,677,588 |
|
|
$ |
5,460,698 |
|
|
$ |
5,299,455 |
|
|
$ |
4,787,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
interest-bearing demand deposits |
|
$ |
486,334 |
|
|
$ |
487,096 |
|
|
$ |
477,428 |
|
|
$ |
457,009 |
|
Interest-bearing demand deposits |
|
|
1,129,657 |
|
|
|
1,098,646 |
|
|
|
1,004,155 |
|
|
|
779,208 |
|
Money
market deposits |
|
|
865,349 |
|
|
|
851,702 |
|
|
|
921,895 |
|
|
|
972,720 |
|
Regular
savings and other deposits |
|
|
337,796 |
|
|
|
343,466 |
|
|
|
333,774 |
|
|
|
321,674 |
|
Certificates of deposit |
|
|
1,570,435 |
|
|
|
1,408,464 |
|
|
|
1,370,609 |
|
|
|
1,129,306 |
|
Total
deposits |
|
|
4,389,571 |
|
|
|
4,189,374 |
|
|
|
4,107,861 |
|
|
|
3,659,917 |
|
Short-term
borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40,000 |
|
Long-term debt |
|
|
591,660 |
|
|
|
582,561 |
|
|
|
513,444 |
|
|
|
434,015 |
|
Accrued expenses and
other liabilities |
|
|
31,691 |
|
|
|
33,156 |
|
|
|
31,751 |
|
|
|
26,753 |
|
Total
liabilities |
|
|
5,012,922 |
|
|
|
4,805,091 |
|
|
|
4,653,056 |
|
|
|
4,160,685 |
|
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; 53,905,279, 54,068,874,
54,039,316 and 53,649,946 shares issued at June 30, 2018, March 31,
2018, December 31, 2017 and June 30, 2017, respectively |
|
|
539 |
|
|
|
540 |
|
|
|
540 |
|
|
|
537 |
|
Additional paid-in
capital |
|
|
392,955 |
|
|
|
395,531 |
|
|
|
395,716 |
|
|
|
392,446 |
|
Retained earnings |
|
|
289,949 |
|
|
|
278,450 |
|
|
|
268,533 |
|
|
|
250,800 |
|
Accumulated other
comprehensive income (loss) |
|
|
(699 |
) |
|
|
(616 |
) |
|
|
128 |
|
|
|
1,905 |
|
Unearned compensation -
ESOP, 2,496,154, 2,526,595, 2,557,036 and 2,617,198 at June 30,
2018, March 31, 2018, December 31, 2017 and June 30, 2017,
respectively |
|
|
(18,078 |
) |
|
|
(18,298 |
) |
|
|
(18,518 |
) |
|
|
(18,959 |
) |
Total
stockholders' equity |
|
|
664,666 |
|
|
|
655,607 |
|
|
|
646,399 |
|
|
|
626,729 |
|
Total
liabilities and stockholders' equity |
|
$ |
5,677,588 |
|
|
$ |
5,460,698 |
|
|
$ |
5,299,455 |
|
|
$ |
4,787,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERIDIAN BANCORP, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF NET
INCOME |
(Unaudited) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, 2018 |
|
|
March 31, 2018 |
|
|
June 30, 2017 |
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
(Dollars in thousands, except per share amounts) |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
53,904 |
|
|
$ |
49,985 |
|
|
$ |
43,195 |
|
|
$ |
103,889 |
|
|
$ |
83,684 |
Interest
on debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
126 |
|
|
|
126 |
|
|
|
83 |
|
|
|
252 |
|
|
|
202 |
Tax-exempt |
|
|
15 |
|
|
|
15 |
|
|
|
8 |
|
|
|
30 |
|
|
|
18 |
Dividends
on equity securities |
|
|
134 |
|
|
|
148 |
|
|
|
291 |
|
|
|
282 |
|
|
|
568 |
Interest
on certificates of deposit |
|
|
141 |
|
|
|
203 |
|
|
|
196 |
|
|
|
344 |
|
|
|
408 |
Other
interest and dividend income |
|
|
1,527 |
|
|
|
1,522 |
|
|
|
736 |
|
|
|
3,049 |
|
|
|
1,381 |
Total
interest and dividend income |
|
|
55,847 |
|
|
|
51,999 |
|
|
|
44,509 |
|
|
|
107,846 |
|
|
|
86,261 |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
|
12,751 |
|
|
|
10,509 |
|
|
|
7,935 |
|
|
|
23,260 |
|
|
|
15,354 |
Interest
on short-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
Interest
on long-term debt |
|
|
2,049 |
|
|
|
1,642 |
|
|
|
1,114 |
|
|
|
3,691 |
|
|
|
2,094 |
Total
interest expense |
|
|
14,800 |
|
|
|
12,151 |
|
|
|
9,053 |
|
|
|
26,951 |
|
|
|
17,452 |
Net interest
income |
|
|
41,047 |
|
|
|
39,848 |
|
|
|
35,456 |
|
|
|
80,895 |
|
|
|
68,809 |
Provision for loan
losses |
|
|
1,870 |
|
|
|
2,189 |
|
|
|
1,497 |
|
|
|
4,059 |
|
|
|
3,116 |
Net
interest income, after provision for loan losses |
|
|
39,177 |
|
|
|
37,659 |
|
|
|
33,959 |
|
|
|
76,836 |
|
|
|
65,693 |
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
service fees |
|
|
2,282 |
|
|
|
2,170 |
|
|
|
2,214 |
|
|
|
4,452 |
|
|
|
4,266 |
Loan
fees |
|
|
(158 |
) |
|
|
295 |
|
|
|
1,634 |
|
|
|
137 |
|
|
|
1,702 |
Mortgage
banking gains, net |
|
|
63 |
|
|
|
133 |
|
|
|
82 |
|
|
|
196 |
|
|
|
172 |
Gain on
sales of securities available for sale, net |
|
|
— |
|
|
|
— |
|
|
|
808 |
|
|
|
— |
|
|
|
2,382 |
Gain
(loss) on equity securities, net |
|
|
388 |
|
|
|
(537 |
) |
|
|
— |
|
|
|
(149 |
) |
|
|
— |
Income
from bank-owned life insurance |
|
|
277 |
|
|
|
272 |
|
|
|
292 |
|
|
|
549 |
|
|
|
580 |
Other
income |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
Total
non-interest income |
|
|
2,858 |
|
|
|
2,333 |
|
|
|
5,030 |
|
|
|
5,191 |
|
|
|
9,102 |
Non-interest
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
14,438 |
|
|
|
15,394 |
|
|
|
12,752 |
|
|
|
29,832 |
|
|
|
26,427 |
Occupancy
and equipment |
|
|
3,025 |
|
|
|
3,539 |
|
|
|
3,036 |
|
|
|
6,564 |
|
|
|
6,059 |
Data
processing |
|
|
1,653 |
|
|
|
1,683 |
|
|
|
1,474 |
|
|
|
3,336 |
|
|
|
2,853 |
Marketing
and advertising |
|
|
1,006 |
|
|
|
967 |
|
|
|
953 |
|
|
|
1,973 |
|
|
|
1,807 |
Professional services |
|
|
1,000 |
|
|
|
965 |
|
|
|
1,106 |
|
|
|
1,965 |
|
|
|
2,241 |
Deposit
insurance |
|
|
782 |
|
|
|
797 |
|
|
|
813 |
|
|
|
1,579 |
|
|
|
1,504 |
Merger
and acquisition |
|
|
14 |
|
|
|
74 |
|
|
|
— |
|
|
|
88 |
|
|
|
— |
Other
general and administrative |
|
|
1,547 |
|
|
|
1,270 |
|
|
|
1,271 |
|
|
|
2,817 |
|
|
|
2,391 |
Total
non-interest expenses |
|
|
23,465 |
|
|
|
24,689 |
|
|
|
21,405 |
|
|
|
48,154 |
|
|
|
43,282 |
Income before income
taxes |
|
|
18,570 |
|
|
|
15,303 |
|
|
|
17,584 |
|
|
|
33,873 |
|
|
|
31,513 |
Provision for income
taxes |
|
|
4,508 |
|
|
|
3,309 |
|
|
|
6,237 |
|
|
|
7,817 |
|
|
|
10,922 |
Net
income |
|
$ |
14,062 |
|
|
$ |
11,994 |
|
|
$ |
11,347 |
|
|
$ |
26,056 |
|
|
$ |
20,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.22 |
|
|
$ |
0.51 |
|
|
$ |
0.40 |
Diluted |
|
$ |
0.27 |
|
|
$ |
0.23 |
|
|
$ |
0.22 |
|
|
$ |
0.49 |
|
|
$ |
0.39 |
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
51,437,726 |
|
|
|
51,531,835 |
|
|
|
51,003,967 |
|
|
|
51,484,521 |
|
|
|
50,976,950 |
Diluted |
|
|
52,867,787 |
|
|
|
53,083,815 |
|
|
|
52,422,486 |
|
|
|
52,975,541 |
|
|
|
52,474,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERIDIAN BANCORP, INC. AND
SUBSIDIARIES |
NET INTEREST INCOME ANALYSIS |
(Unaudited) |
|
|
|
Three Months Ended |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
AverageBalance |
|
|
Interest(1) |
|
Yield/Cost
(1)(6) |
|
AverageBalance |
|
|
Interest(1) |
|
Yield/Cost
(1)(6) |
|
AverageBalance |
|
|
Interest(1) |
|
Yield/Cost
(1)(6) |
|
|
(Dollars in thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(2) |
|
$ |
5,043,367 |
|
|
$ |
54,491 |
|
|
|
|
4.33 |
|
% |
|
$ |
4,776,876 |
|
|
$ |
50,573 |
|
|
|
|
4.29 |
|
% |
|
$ |
4,180,602 |
|
|
$ |
44,431 |
|
|
|
|
4.26 |
|
% |
Securities and certificates of deposit |
|
|
70,155 |
|
|
|
443 |
|
|
|
|
2.53 |
|
|
|
|
96,511 |
|
|
|
523 |
|
|
|
|
2.20 |
|
|
|
|
142,159 |
|
|
|
691 |
|
|
|
|
1.95 |
|
|
Other
interest-earning assets (3) |
|
|
328,659 |
|
|
|
1,527 |
|
|
|
|
1.86 |
|
|
|
|
317,883 |
|
|
|
1,522 |
|
|
|
|
1.94 |
|
|
|
|
239,590 |
|
|
|
736 |
|
|
|
|
1.23 |
|
|
Total
interest-earning assets |
|
|
5,442,181 |
|
|
|
56,461 |
|
|
|
|
4.16 |
|
|
|
|
5,191,270 |
|
|
|
52,618 |
|
|
|
|
4.11 |
|
|
|
|
4,562,351 |
|
|
|
45,858 |
|
|
|
|
4.03 |
|
|
Noninterest-earning
assets |
|
|
118,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
125,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
110,509 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
5,560,505 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,316,563 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,672,860 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
1,104,003 |
|
|
$ |
3,486 |
|
|
|
|
1.27 |
|
|
|
$ |
1,032,514 |
|
|
$ |
2,791 |
|
|
|
|
1.10 |
|
|
|
$ |
753,839 |
|
|
$ |
1,598 |
|
|
|
|
0.85 |
|
|
Money
market deposits |
|
|
849,177 |
|
|
|
2,326 |
|
|
|
|
1.10 |
|
|
|
|
883,549 |
|
|
|
2,057 |
|
|
|
|
0.94 |
|
|
|
|
992,382 |
|
|
|
2,219 |
|
|
|
|
0.90 |
|
|
Regular
savings and other deposits |
|
|
339,004 |
|
|
|
118 |
|
|
|
|
0.14 |
|
|
|
|
335,288 |
|
|
|
114 |
|
|
|
|
0.14 |
|
|
|
|
317,656 |
|
|
|
114 |
|
|
|
|
0.14 |
|
|
Certificates of deposit |
|
|
1,504,883 |
|
|
|
6,821 |
|
|
|
|
1.82 |
|
|
|
|
1,376,113 |
|
|
|
5,547 |
|
|
|
|
1.63 |
|
|
|
|
1,147,440 |
|
|
|
4,004 |
|
|
|
|
1.40 |
|
|
Total
interest-bearing deposits |
|
|
3,797,067 |
|
|
|
12,751 |
|
|
|
|
1.35 |
|
|
|
|
3,627,464 |
|
|
|
10,509 |
|
|
|
|
1.17 |
|
|
|
|
3,211,317 |
|
|
|
7,935 |
|
|
|
|
0.99 |
|
|
Borrowings |
|
|
591,862 |
|
|
|
2,049 |
|
|
|
|
1.39 |
|
|
|
|
521,090 |
|
|
|
1,642 |
|
|
|
|
1.28 |
|
|
|
|
356,325 |
|
|
|
1,118 |
|
|
|
|
1.26 |
|
|
Total
interest-bearing liabilities |
|
|
4,388,929 |
|
|
|
14,800 |
|
|
|
|
1.35 |
|
|
|
|
4,148,554 |
|
|
|
12,151 |
|
|
|
|
1.19 |
|
|
|
|
3,567,642 |
|
|
|
9,053 |
|
|
|
|
1.02 |
|
|
Noninterest-bearing
demand deposits |
|
|
482,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
488,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
456,447 |
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities |
|
|
27,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
26,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
25,732 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
4,898,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,663,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,049,821 |
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
|
661,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
652,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
623,039 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
5,560,505 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,316,563 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,672,860 |
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets |
|
$ |
1,053,252 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,042,716 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
994,709 |
|
|
|
|
|
|
|
|
|
|
|
Fully
tax-equivalent net interest income |
|
|
|
|
|
|
41,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
40,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
36,805 |
|
|
|
|
|
|
|
Less:
tax-equivalent adjustments |
|
|
|
|
|
|
(614 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(619 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1,349 |
) |
|
|
|
|
|
|
Net
interest income |
|
|
|
|
|
$ |
41,047 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
39,848 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
35,456 |
|
|
|
|
|
|
|
Interest
rate spread (1)(4) |
|
|
|
|
|
|
|
|
|
|
|
2.81 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
2.92 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
3.01 |
|
% |
Net
interest margin (1)(5) |
|
|
|
|
|
|
|
|
|
|
|
3.07 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
3.16 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
3.24 |
|
% |
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
|
|
|
|
124.00 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
125.13 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
127.88 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits, including noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
demand
deposits |
|
$ |
4,279,970 |
|
|
$ |
12,751 |
|
|
|
|
1.19 |
|
% |
|
$ |
4,115,923 |
|
|
$ |
10,509 |
|
|
|
|
1.04 |
|
% |
|
$ |
3,667,764 |
|
|
$ |
7,935 |
|
|
|
|
0.87 |
|
% |
Total
deposits and borrowings, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noninterest-bearing demand deposits |
|
$ |
4,871,832 |
|
|
$ |
14,800 |
|
|
|
|
1.22 |
|
% |
|
$ |
4,637,013 |
|
|
$ |
12,151 |
|
|
|
|
1.06 |
|
% |
|
$ |
4,024,089 |
|
|
$ |
9,053 |
|
|
|
|
0.90 |
|
% |
(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 June 30, 2018, March 31, 2018 and June 30,
2017, yields on loans before tax-equivalent adjustments were 4.29%,
4.24% and 4.14%, respectively, yields on securities and
certificates of deposit before tax-equivalent adjustments were
2.38%, 2.07% and 1.63%, respectively, and yield on total
interest-earning assets before tax-equivalent adjustments were
4.12%, 4.06% and 3.91%, respectively. Interest rate spread before
tax-equivalent adjustments for the three months ended June 30,
2018, March 31, 2018 and June 30, 2017 was 2.77%, 2.87% and 2.89%,
respectively, while net interest margin before tax-equivalent
adjustments for the three months ended June 30, 2018, March 31,
2018 and June 30, 2017 was 3.03%, 3.11% and 3.12%, 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 |
NET INTEREST INCOME ANALYSIS |
(Unaudited) |
|
|
Six Months Ended |
|
June 30, 2018 |
|
June 30, 2017 |
|
Average |
|
|
|
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
|
|
|
Yield/ |
|
Balance |
|
|
Interest (1) |
|
Cost (1) |
|
Balance |
|
|
Interest (1) |
|
Cost (1) |
|
(Dollars in thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(2) |
$ |
4,910,858 |
|
|
$ |
105,064 |
|
|
|
|
4.31 |
|
% |
|
$ |
4,091,226 |
|
|
$ |
86,121 |
|
|
|
|
4.24 |
|
% |
Securities and certificates of deposit |
|
83,260 |
|
|
|
966 |
|
|
|
|
2.34 |
|
|
|
|
143,990 |
|
|
|
1,418 |
|
|
|
|
1.99 |
|
|
Other
interest-earning assets (3) |
|
323,301 |
|
|
|
3,049 |
|
|
|
|
1.90 |
|
|
|
|
241,523 |
|
|
|
1,381 |
|
|
|
|
1.15 |
|
|
Total
interest-earning assets |
|
5,317,419 |
|
|
|
109,079 |
|
|
|
|
4.14 |
|
|
|
|
4,476,739 |
|
|
|
88,920 |
|
|
|
|
4.01 |
|
|
Noninterest-earning
assets |
|
121,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
111,130 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
5,438,515 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,587,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
$ |
1,068,456 |
|
|
$ |
6,277 |
|
|
|
|
1.18 |
|
|
|
$ |
704,681 |
|
|
$ |
2,817 |
|
|
|
|
0.81 |
|
|
Money
market deposits |
|
866,268 |
|
|
|
4,383 |
|
|
|
|
1.02 |
|
|
|
|
1,000,343 |
|
|
|
4,449 |
|
|
|
|
0.90 |
|
|
Regular
savings and other deposits |
|
337,156 |
|
|
|
232 |
|
|
|
|
0.14 |
|
|
|
|
312,825 |
|
|
|
222 |
|
|
|
|
0.14 |
|
|
Certificates of deposit |
|
1,440,854 |
|
|
|
12,368 |
|
|
|
|
1.73 |
|
|
|
|
1,140,921 |
|
|
|
7,866 |
|
|
|
|
1.39 |
|
|
Total
interest-bearing deposits |
|
3,712,734 |
|
|
|
23,260 |
|
|
|
|
1.26 |
|
|
|
|
3,158,770 |
|
|
|
15,354 |
|
|
|
|
0.98 |
|
|
Borrowings |
|
556,672 |
|
|
|
3,691 |
|
|
|
|
1.34 |
|
|
|
|
343,536 |
|
|
|
2,098 |
|
|
|
|
1.23 |
|
|
Total
interest-bearing liabilities |
|
4,269,406 |
|
|
|
26,951 |
|
|
|
|
1.27 |
|
|
|
|
3,502,306 |
|
|
|
17,452 |
|
|
|
|
1.00 |
|
|
Noninterest-bearing
demand deposits |
|
485,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
440,986 |
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities |
|
26,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
26,517 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
4,781,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,969,809 |
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
657,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
618,060 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
5,438,515 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4,587,869 |
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets |
$ |
1,048,013 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
974,433 |
|
|
|
|
|
|
|
|
|
|
|
Fully
tax-equivalent net interest income |
|
|
|
|
|
82,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
71,468 |
|
|
|
|
|
|
|
Less:
tax-equivalent adjustments |
|
|
|
|
|
(1,233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(2,659 |
) |
|
|
|
|
|
|
Net
interest income |
|
|
|
|
$ |
80,895 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
68,809 |
|
|
|
|
|
|
|
Interest
rate spread (1)(4) |
|
|
|
|
|
|
|
|
|
|
2.87 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
3.01 |
|
% |
Net
interest margin (1)(5) |
|
|
|
|
|
|
|
|
|
|
3.11 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
3.22 |
|
% |
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
|
|
|
124.55 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
127.82 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits, including noninterest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
demand
deposits |
$ |
4,198,399 |
|
|
$ |
23,260 |
|
|
|
|
1.12 |
|
% |
|
$ |
3,599,756 |
|
|
$ |
15,354 |
|
|
|
|
0.86 |
|
% |
Total
deposits and borrowings, including |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noninterest-bearing demand deposits |
$ |
4,755,071 |
|
|
$ |
26,951 |
|
|
|
|
1.14 |
|
% |
|
$ |
3,943,292 |
|
|
$ |
17,452 |
|
|
|
|
0.89 |
|
% |
(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 six months ended June 30, 2018, and 2017, yields on loans
before tax-equivalent adjustments were 4.27% and 4.12%,
respectively, yields on securities and certificates of deposit
before tax-equivalent adjustments were 2.20% and 1.67%,
respectively, and yield on total interest-earning assets before
tax-equivalent adjustments were 4.09% and 3.89%, respectively.
Interest rate spread before tax-equivalent adjustments for the six
months ended June 30, 2018, and 2017 was 2.82% and 2.89%,
respectively, while net interest margin before tax-equivalent
adjustments for the six months ended June 30, 2018, and 2017 was
3.07% and 3.10%, 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 |
|
Six Months Ended |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1) |
|
1.01 |
|
% |
|
|
0.90 |
|
% |
|
|
0.97 |
|
% |
|
|
0.96 |
|
% |
|
0.90 |
|
% |
Return on average
equity (1) |
|
8.50 |
|
|
|
|
7.35 |
|
|
|
|
7.28 |
|
|
|
|
7.93 |
|
|
|
6.66 |
|
|
Interest rate
spread (1) (2) |
|
2.81 |
|
|
|
|
2.92 |
|
|
|
|
3.01 |
|
|
|
|
2.87 |
|
|
|
3.01 |
|
|
Net interest
margin (1) (3) |
|
3.07 |
|
|
|
|
3.16 |
|
|
|
|
3.24 |
|
|
|
|
3.11 |
|
|
|
3.22 |
|
|
Non-interest expense to
average assets (1) |
|
1.69 |
|
|
|
|
1.86 |
|
|
|
|
1.83 |
|
|
|
|
1.77 |
|
|
|
1.89 |
|
|
Efficiency ratio
(4) |
|
53.89 |
|
|
|
|
57.62 |
|
|
|
|
53.95 |
|
|
|
|
55.74 |
|
|
|
57.31 |
|
|
|
June 30, 2018 |
|
March 31, 2018 |
|
December 31, 2017 |
|
June 30, 2017 |
|
|
|
(Dollars in thousands) |
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to
four-family |
$ |
6,457 |
|
|
|
$ |
6,568 |
|
|
|
$ |
6,890 |
|
|
|
$ |
7,667 |
|
|
Home
equity lines of credit |
|
563 |
|
|
|
|
562 |
|
|
|
|
562 |
|
|
|
|
619 |
|
|
Commercial real estate |
|
366 |
|
|
|
|
378 |
|
|
|
|
388 |
|
|
|
|
2,666 |
|
|
Commercial and industrial |
|
519 |
|
|
|
|
523 |
|
|
|
|
523 |
|
|
|
|
529 |
|
|
Total
non-accrual loans |
|
7,905 |
|
|
|
|
8,031 |
|
|
|
|
8,363 |
|
|
|
|
11,481 |
|
|
Foreclosed assets |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Total
non-performing assets |
$ |
7,905 |
|
|
|
$ |
8,031 |
|
|
|
$ |
8,363 |
|
|
|
$ |
11,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses/total loans |
|
0.96 |
|
% |
|
|
0.96 |
|
% |
|
|
0.97 |
|
% |
|
|
1.00 |
|
% |
Allowance for loan
losses/non-accrual loans |
|
624.93 |
|
|
|
|
591.31 |
|
|
|
|
540.30 |
|
|
|
|
376.53 |
|
|
Non-accrual loans/total
loans |
|
0.15 |
|
|
|
|
0.16 |
|
|
|
|
0.18 |
|
|
|
|
0.27 |
|
|
Non-accrual loans/total
assets |
|
0.14 |
|
|
|
|
0.15 |
|
|
|
|
0.16 |
|
|
|
|
0.24 |
|
|
Non-performing
assets/total assets |
|
0.14 |
|
|
|
|
0.15 |
|
|
|
|
0.16 |
|
|
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and
Share Related |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity to
total assets |
|
11.71 |
|
% |
|
|
12.01 |
|
% |
|
|
12.20 |
|
% |
|
|
13.09 |
|
% |
Book value per
share |
$ |
12.33 |
|
|
|
$ |
12.13 |
|
|
|
$ |
11.96 |
|
|
|
$ |
11.68 |
|
|
Tangible book value per
share (5) |
$ |
11.91 |
|
|
|
$ |
11.70 |
|
|
|
$ |
11.54 |
|
|
|
$ |
11.43 |
|
|
Market value per
share |
$ |
19.15 |
|
|
|
$ |
20.15 |
|
|
|
$ |
20.60 |
|
|
|
$ |
16.90 |
|
|
Shares
outstanding |
53,905,279 |
|
|
|
54,068,874 |
|
|
|
54,039,316 |
|
|
|
53,649,946 |
|
|
(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 measure representing non-interest
expense, excluding merger and acquisition expenses, divided by the
sum of net interest income and non-interest income excluding gains
or losses on sales of securities, and gains or losses on equity
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 and gains or
losses on equity securities as management deems them to be either
discretionary or market driven and not representative of operating
performance. We have removed merger and acquisition expenses as
management deems them to be not representative of operating
performance. Presented on a basis including merger and acquisition
expenses, gains or losses on sales of securities and gains or
losses on equity securities, the efficiency ratio was 53.44%,
58.53% and 52.87% for the quarters ended June, 30, 2018, March 31,
2018, and June 30, 2017, respectively, and 55.94% and 55.55% for
the six months ended June 30, 2018 and 2017, respectively.
(5) Tangible book value per share represents total
stockholders’ equity less goodwill and other intangible assets
divided by the number of shares outstanding.
Contact: Richard J. Gavegnano, Chairman,
President and Chief Executive Officer(978) 977-2211
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