Meridian Interstate Bancorp Inc declare 3Q earnings
BOSTON
Meridian Interstate Bancorp Inc, the holding company for East Boston Savings Bank, which also operates under the name Mt. Washington Bank, a Division of East Boston Savings Bank announced net income of $2.7 million, or $0.12 per diluted share, for the quarter ended September 30, 2012 compared to $2.6 million, or $0.12 per diluted share, for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, net income was $10.3 million, or $0.47 per diluted share compared to $10.0 million, or $0.46 per diluted share, for the nine months ended September 30, 2011. The Company recorded a pre-tax gain of $4.8 million on June 8, 2012 due to the sale of Hampshire First Bank, which was 43% owned by the Company, to NBT Bancorp, Inc. and NBT Bank, N.A. On an after-tax basis, this gain increased net income by $2.9 million, or $0.13 per diluted share, for the nine months ended September 30, 2012. The Company’s return on average assets was 0.50% for the quarter ended September 30, 2012 compared to 0.54% for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, the Company’s return on average assets was 0.67% compared to 0.70% for the nine months ended September 30, 2011. The Company’s return on average equity was 4.70% for the quarter ended September 30, 2012 compared to 4.78% for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, the Company’s return on average equity was 6.05% compared to 6.08% for the nine months ended September 30, 2011.
Richard J. Gavegnano, Chairman and Chief Executive Officer, said, “I am pleased to report net income of $2.7 million, or $0.12 per share, for the third quarter of 2012. Net interest income rose 15% for the third quarter of 2012, reflecting growth in the Bank’s loan portfolio of $391 million, or 32%, and core deposits of $271 million, or 30%, since September of last year. Such significant growth validates the actions taken over the past year to expand capacity in real estate and business lending, core deposit funding sources and support functions that contributed to increases in our market share and franchise value. We will continue to expand our footprint with a new East Boston Savings Bank branch in the Town of Belmont and a new Mt. Washington branch in Boston’s Allston neighborhood to be opened late this year or early next year.” Net interest income increased $2.1 million, or 14.8%, to $16.4 million for the quarter ended September 30, 2012 from $14.3 million for the quarter ended September 30, 2011. The net interest rate spread and net interest margin were 3.05% and 3.21%, respectively, for the quarter ended September 30, 2012 compared to 2.97% and 3.15%, respectively, for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, net interest income increased $5.7 million, or 13.2%, to $48.7 million from $43.0 million for the nine months ended September 30, 2011. The net interest rate spread and net interest margin were 3.18% and 3.35%, respectively, for the nine months ended September 30, 2012 compared to 3.07% and 3.24%, respectively, for the nine months ended September 30, 2011. The increases in net interest income were due primarily to strong loan growth along with declines in the cost of funds for the third quarter and nine months ended September 30, 2012 compared to the same periods in 2011.
The average balance of the Company’s loan portfolio increased $358.7 million, or 29.0%, to $1.598 billion, which was partially offset by the decline in the yield on loans of 53 basis points to 4.77% for the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011. The Company’s cost of total deposits declined 24 basis points to 0.89%, which was partially offset by the increase in the average balance of total deposits of $182.6 million.