Merid­ian In­ter­state Ban­corp Inc de­clare 3Q earn­ings

The Pak Banker - - Front Page -

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.

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