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Meridian Bancorp, Inc. Reports Net Income for the First Quarter Ended March 31, 2016

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BOSTON, April 26, 2016 (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 $7.5 million, or $0.14 per diluted share, for the quarter ended March 31, 2016, up from $6.9 million, or $0.13 per diluted share, for the quarter ended December 31, 2015 and $6.4 million, or $0.12 per diluted share, for the quarter ended March 31, 2015. The Company's return on average assets was 0.83% for the quarter ended March 31, 2016, up from 0.80% for the quarter ended December 31, 2015 and 0.78% for the quarter ended March 31, 2015. For the quarter ended March 31, 2016, the Company's return on average equity was 5.11%, up from 4.67% for the quarter ended December 31, 2015 and 4.41% for the quarter ended March 31, 2015.

Richard J. Gavegnano, Chairman, President and Chief Executive Officer, said, "It is my great pleasure to report record quarterly net income of $7.5 million for the first quarter of 2016, up 9% from the fourth quarter of 2015 and 17% from the first quarter of 2015. During the first quarter, we grew to $3.7 billion in total assets, reflecting record first quarter net loan growth of $162 million, or 21% on an annualized basis, and net deposit growth of $168 million, or 25% on an annualized basis. This organic growth has resulted in a 25% increase in core pre-tax income, which excludes gains on sales of securities, of $2.1 million to $10.7 million for the first quarter of 2016 from the first quarter of last year reflecting rising net interest income and improving operating efficiency. We are building on this momentum following the opening of our 30th branch in Boston's Chinatown neighborhood in March with the introduction of an innovative mobile branch in the second quarter and plans for our second branch in Brookline to be opened by year end as we continually evaluate other new opportunities to expand our franchise footprint in the greater Boston market area."

The Company's net interest income was $28.4 million for the quarter ended March 31, 2016, up $1.0 million, or 3.8%, from $27.3 million for the quarter ended December 31, 2015 and $4.0 million, or 16.3%, from $24.4 million for the quarter ended March 31, 2015. The interest rate spread and net interest margin on a tax-equivalent basis were 3.18% and 3.39%, respectively, for the quarter ended March 31, 2016 compared to 3.17% and 3.39%, respectively, for the quarter ended December 31, 2015 and 3.01% and 3.23%, respectively, for the quarter ended March 31, 2015. The increases in net interest income were due primarily to loan growth, partially offset by growth in total deposits and borrowings for the quarter ended March 31, 2016 compared to the quarters ended December 31, 2015 and March 31, 2015.

Total interest and dividend income increased to $34.2 million for the quarter ended March 31, 2016, up $1.5 million, or 4.7%, from the quarter ended December 31, 2015 and $4.6 million, or 15.6%, from the quarter ended March 31, 2015, primarily due to growth in the Company's average loan balances to $3.146 billion and increases in the yield on loans on a tax-equivalent basis to 4.36%. Total interest expense increased to $5.8 million for the quarter ended March 31, 2016, up $505,000, or 9.5%, from the quarter ended December 31, 2015 and $620,000, or 12.0%, from the quarter ended March 31, 2015, primarily due to the growth in average total deposits to $2.807 billion and increases in the cost of average total deposits to 0.75%. The Company's yield on interest-earning assets on a tax-equivalent basis increased to 4.06% for the quarter ended March 31, 2016 from 4.03% for the quarter ended December 31, 2015 and 3.89% for the quarter ended March 31, 2015, while the cost of funds was 0.78% for the quarter ended March 31, 2016 compared to 0.75% for the quarter ended December 31, 2015 and 0.78% for the quarter ended March 31, 2015.

Mr. Gavegnano noted, "Over the past twelve months, our total loans grew $564 million, or 21%, driving our trend of steadily rising quarterly net interest income. Our net interest margin also expanded over the past year along with our strong loan growth as loan yields and the cost of funds remained relatively stable. Our lending pipeline remains strong as we continue to expand our funding capacity."

The Company's provision for loan losses increased to $1.1 million for the quarter ended March 31, 2016 from $544,000 for the quarter ended December 31, 2015 and $60,000 for the quarter ended March 31, 2015, primarily due to commercial loan growth. The increases in the provision for loan losses were also based on management's assessment of loan portfolio growth and composition changes, improving historical charge-off trends, an ongoing evaluation of credit quality and current economic conditions. The allowance for loan losses was $34.4 million or 1.06% of total loans at March 31, 2016, compared to $33.4 million or 1.08% of total loans at December 31, 2015 and $28.6 million or 1.07% of total loans at March 31, 2015. Net charge-offs totaled $81,000 for the quarter ended March 31, 2016, or 0.01% of average loans outstanding on an annualized basis compared to net recoveries of $274,000 for the quarter ended December 31, 2015, or 0.04% of average loans outstanding on an annualized basis and net recoveries of $72,000 for the quarter ended March 31, 2015, or 0.01% of average loans outstanding on an annualized basis.

Non-accrual loans were $30.7 million, or 0.95% of total loans outstanding, at March 31, 2016 compared to $31.3 million, or 1.02% of total loans outstanding, at December 31, 2015 and $28.9 million, or 1.08% of total loans outstanding, at March 31, 2015. Non-accrual loans at March 31, 2016 decreased $656,000 or 2.1% compared to December 31, 2015, primarily due to a decrease of $1.2 million in construction loans, partially offset by increases of $398,000 in one- to four-family loans and $220,000 in home equity loans. Non-accrual construction loans include a $12.4 million construction loan placed on non-accrual status during the second quarter of 2015. Non-performing assets were $31.3 million, or 0.84% of total assets, at March 31, 2016, compared to $31.3 million, or 0.89% of total assets, at December 31, 2015 and $30.0 million, or 0.89% of total assets, at March 31, 2015.

Mr. Gavegnano commented, "Our credit quality remains solid as we continue the hard work of reducing and minimizing non-performing assets through diligent credit monitoring, collection and workout efforts. In particular, steady progress is being made toward resolution and collection of the $12.4 million remaining balance on the non-accrual multi-family construction loan in Boston." Mr. Gavegnano added, "Our Shared National Credit loan portfolio at March 31, 2016 was comprised of two performing commercial real estate loans totaling $17.7 million. These are seasoned loans in our lending footprint with no charge-offs to date or exposure to the energy industry."

Non-interest income was $2.7 million for the quarter ended March 31, 2016, compared to $2.7 million for the quarter ended December 31, 2015 and $3.4 million for the quarter ended March 31, 2015. For the quarter ended March 31, 2016, non-interest income decreased $658,000, or 19.6%, from the quarter ended March 31, 2015 primarily due to a decrease of $961,000 in gain on sales of securities, net, partially offset by increases of $190,000 in customer service fees and $146,000 in loan fees.

Non-interest expenses were $19.2 million, or 2.13% of average assets for the quarter ended March 31, 2016, compared to $19.2 million, or 2.24% of average assets for the quarter ended December 31, 2015 and $18.1 million, or 2.19% of average assets for the quarter ended March 31, 2015. For the quarter ended March 31, 2016, non-interest expenses increased $1.2 million, or 6.4%, from the quarter ended March 31, 2015, primarily due to increases of $1.3 million in salaries and employee benefits and $214,000 in other general and administrative expenses, partially offset by decreases of $181,000 in marketing and advertising and $136,000 in occupancy and equipment expenses. The increase in salaries and employee benefits expense was primarily due to annual increases in employee compensation and health benefits during the three months ended March 31, 2016 and expenses associated with the November 2015 grant of restricted stock and stock options to the Company's directors, officers and employees. The decrease in marketing and advertising expense reflected lower advertising production and direct mail costs and cost savings associated with the 2015 rebranding of the former Mt. Washington Bank Division into the East Boston Savings Bank brand. The decrease in occupancy and equipment expenses was primarily due to lower snow removal costs during the three months ended March 31, 2016. The Company's efficiency ratio improved to 62.01% for the quarter ended March 31, 2016 from 63.81% for the quarter ended December 31, 2015 and 67.61% for the quarter ended March 31, 2015.

Mr. Gavegnano concluded, "Our efficiency ratio for the first quarter of 2016 improved to 62%, the lowest level in our history. The continuing improvement in our efficiency ratio is due to the steady rise in net interest income driven by strong loan growth, along with prudent expense control. We expect this trend to continue as we move forward with our strategic growth plans."

The Company recorded a provision for income taxes of $3.3 million for the quarter ended March 31, 2016, reflecting an effective tax rate of 30.6%, compared to $3.4 million, or a 33.1% effective tax rate, for the quarter ended December 31, 2015 and $3.2 million, or a 33.4% effective tax rate, for the quarter ended March 31, 2015. 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 increased $204.9 million, or 5.8%, to $3.729 billion at March 31, 2016 from $3.525 billion at December 31, 2015. Net loans increased $162.5 million, or 5.3%, to $3.208 billion at March 31, 2016 from $3.045 billion at December 31, 2015. The net increase in loans for the three months ended March 31, 2016 was primarily due to increases of $83.1 million in commercial real estate loans, $77.4 million in commercial and industrial loans, $13.5 million in multi-family loans and $1.1 million in home equity loans, partially offset by decreases of $7.9 million in construction loans and $3.0 million in one- to four-family loans. Cash and due from banks increased $57.8 million, or 59.9%, to $154.1 million at March 31, 2016 from $96.4 million at December 31, 2015. Securities available for sale decreased $9.5 million, or 6.7%, to $132.1 million at March 31, 2016 from $141.6 million at December 31, 2015.

Total deposits increased $168.4 million, or 6.1%, to $2.911 billion at March 31, 2016 from $2.743 billion at December 31, 2015. Core deposits, which exclude certificate of deposits, increased $72.5 million, or 3.9%, to $1.927 billion, or 66.2% of total deposits, at March 31, 2016. Total borrowings increased $44.2 million, or 26.4%, to $211.4 million at March 31, 2016 from $167.2 million at December 31, 2015.

Total stockholders' equity decreased $5.4 million, or 0.9%, to $582.7 million at March 31, 2016, from $588.1 million at December 31, 2015. The decrease for the three months ended March 31, 2016 was primarily due to a $13.4 million repurchase of 976,417 shares of the Company's common stock and a dividend of $0.03 per share totaling $1.5 million, partially offset by increases of $7.5 million in net income, $1.3 million related to stock-based compensation plans and $742,000 in accumulated other comprehensive income, reflecting an increase in the fair value of available for sale securities. Stockholders' equity to assets was 15.62% at March 31, 2016, compared to 16.69% at December 31, 2015. Book value per share increased to $10.81 at March 31, 2016 from $10.72 at December 31, 2015. Tangible book value per share increased to $10.56 at March 31, 2016 from $10.47 at December 31, 2015. Market price per share decreased $0.18, or 1.3%, to $13.92 at March 31, 2016 from $14.10 at December 31, 2015. At March 31, 2016, the Company and the Bank continued to exceed all regulatory capital requirements.

During the quarter ended March 31, 2016, the Company repurchased 976,417 shares of its stock at an average price of $13.71 per share. As of March 31, 2016, the Company had repurchased 1,698,521 shares of its stock at an average price of $13.43 per share, or 62.1% of the 2,737,334 shares authorized for repurchase under the Company's repurchase program as adopted in August 2015. 

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 30 full-service locations 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 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, 2016 December 31, 2015 March 31, 2015
 (Dollars in thousands)
ASSETS
Cash and due from banks$154,122  $96,363  $273,433 
Certificates of deposit 92,675   99,062   85,000 
Securities available for sale, at fair value 132,115   141,646   199,727 
Federal Home Loan Bank stock, at cost 13,021   10,931   12,725 
Loans held for sale 1,194   4,669   5,814 
Loans:     
One- to four-family 455,438   458,423   459,154 
Home equity lines of credit 47,807   46,660   48,581 
Multi-family 430,871   417,388   406,713 
Commercial real estate 1,411,410   1,328,344   1,138,996 
Construction 413,660   421,531   277,506 
Commercial and industrial 477,450   400,051   342,330 
Consumer 9,832   10,028   8,954 
Total loans 3,246,468   3,082,425   2,682,234 
Allowance for loan losses (34,390)  (33,405)  (28,601)
Net deferred loan origination fees (4,342)  (3,778)  (2,588)
Loans, net 3,207,736   3,045,242   2,651,045 
Bank-owned life insurance 39,859   39,557   38,907 
Foreclosed real estate, net 638   -   1,046 
Premises and equipment, net 40,733   40,248   38,705 
Accrued interest receivable 8,831   8,574   7,545 
Deferred tax asset, net 20,868   21,246   16,397 
Goodwill 13,687   13,687   13,687 
Other assets 3,976   3,284   3,594 
      
Total assets$3,729,455  $3,524,509  $3,347,625 
      
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:     
Non interest-bearing demand deposits$388,731  $370,546  $306,736 
NOW deposits 360,237   334,753   307,954 
Money market deposits 880,186   860,957   1,009,758 
Regular savings and other deposits 297,806   288,180   285,000 
Certificates of deposit 984,459   888,582   684,836 
Total deposits 2,911,419   2,743,018   2,594,284 
Short-term borrowings -   20,000   - 
Long-term debt 211,426   147,226   144,110 
Accrued expenses and other liabilities 23,926   26,139   25,626 
Total liabilities 3,146,771   2,936,383   2,764,020 
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;     
53,895,870, 54,875,237 and 54,946,694 shares issued at March     
31, 2016, December 31, 2015 and March 31, 2015, respectively 539   549   549 
Additional paid-in capital 391,399   403,737   411,173 
Retained earnings 212,158   206,214   191,120 
Accumulated other comprehensive (loss) income (1,350)  (2,092)  1,707 
Unearned compensation - ESOP, 2,770,123, 2,800,564 and     
2,891,887 shares at March 31, 2016, December 31, 2015     
and March 31, 2015, respectively (20,062)  (20,282)  (20,944)
Total stockholders' equity 582,684   588,126   583,605 
      
Total liabilities and stockholders' equity$3,729,455  $3,524,509  $3,347,625 
      

 

        
MERIDIAN BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Net Income
(Unaudited)
        
  For the Three Months Ended 
  March 31, 2016 December 31, 2015 March 31, 2015 
  (Dollars in thousands, except per share amounts)
Interest and dividend income:      
Interest and fees on loans$33,097  $31,555  $28,332  
Interest on debt securities:      
Taxable 266   297   511  
Tax-exempt 33   38   42  
Dividends on equity securities 400   422   387  
Interest on certificates of deposit 170   168   136  
Other interest and dividend income 218   159   170  
Total interest and dividend income 34,184   32,639   29,578  
Interest expense:      
Interest on deposits 5,228   4,800   4,677  
Interest on short-term borrowings 6   5   -  
Interest on long-term debt 571   495   508  
Total interest expense 5,805   5,300   5,185  
Net interest income 28,379   27,339   24,393  
Provision for loan losses 1,066   544   60  
Net interest income, after provision for loan losses 27,313   26,795   24,333  
Non-interest income:      
Customer service fees 1,947   2,114   1,757  
Loan fees 312   203   166  
Mortgage banking gains, net 70   119   110  
Gain (loss) on sales of securities, net 59   (57)  1,020  
Income from bank-owned life insurance 302   295   296  
Other income 2   -   1  
Total non-interest income 2,692   2,674   3,350  
Non-interest expenses:      
Salaries and employee benefits 12,513   11,618   11,167  
Occupancy and equipment 2,484   2,482   2,620  
Data processing 1,257   1,317   1,263  
Marketing and advertising 713   1,160   894  
Professional services 613   652   673  
Foreclosed real estate 8   109   14  
Deposit insurance 452   527   461  
Other general and administrative 1,190   1,322   976  
Total non-interest expenses 19,230   19,187   18,068  
Income before income taxes 10,775   10,282   9,615  
Provision for income taxes 3,298   3,407   3,210  
Net income$7,477  $6,875  $6,405  
        
Earnings per share:      
Basic$0.14  $0.13  $0.12  
Diluted$0.14  $0.13  $0.12  
Weighted average shares:      
Basic 51,569,683   51,982,009   51,862,146  
Diluted 52,663,921   53,092,652   53,003,621  
        

 

                     
MERIDIAN BANCORP, INC. AND SUBSIDIARIES
Net Interest Income Analysis
(Unaudited)
                     
  For the Three Months Ended 
 March 31, 2016 December 31, 2015 March 31, 2015
 Average   Yield/ Average   Yield/ Average   Yield/
 Balance Interest (1) Cost (1)(6) Balance Interest (1) Cost (1)(6) Balance Interest (1) Cost (1)(6)
 (Dollars in thousands)
Assets:                    
Interest-earning assets:                    
Loans (2)$3,146,449  $34,104  4.36% $2,995,593  $32,427  4.29% $2,686,367  $29,120  4.40%
Securities and certificates of deposits 231,604   1,034  1.80   242,945   1,100  1.80   286,790   1,240  1.75 
Other interest-earning assets  (3) 123,476   218  0.71   78,836   159  0.80   212,063   170  0.33 
Total interest-earning assets 3,501,529   35,356  4.06   3,317,374   33,686  4.03   3,185,220   30,530  3.89 
Noninterest-earning assets 114,476        114,080        113,019      
Total assets$3,616,005       $3,431,454       $3,298,239      
                     
Liabilities and stockholders' equity:                    
Interest-bearing liabilities:                    
NOW deposits$338,517   500  0.59  $308,105   455  0.59  $295,317   457  0.63 
Money market deposits 873,774   1,745  0.80   873,355   1,762  0.80   980,104   2,078  0.86 
Regular savings and other deposits 290,463   103  0.14   284,085   102  0.14   274,516   151  0.22 
Certificates of deposit 936,674   2,880  1.24   831,152   2,481  1.18   697,963   1,991  1.16 
Total interest-bearing deposits 2,439,428   5,228  0.86   2,296,697   4,800  0.83   2,247,900   4,677  0.84 
Borrowings 199,779   577  1.16   151,416   500  1.31   150,939   508  1.36 
Total interest-bearing liabilities 2,639,207   5,805  0.88   2,448,113   5,300  0.86   2,398,839   5,185  0.88 
Noninterest-bearing demand deposits 368,038        370,061        295,520      
Other noninterest-bearing liabilities 23,312        24,285        23,465      
Total liabilities 3,030,557        2,842,459        2,717,824      
Total stockholders' equity 585,448        588,995        580,415      
Total liabilities and stockholders' equity$3,616,005       $3,431,454       $3,298,239      
                     
Net interest-earning assets$862,322       $869,261       $786,381      
Fully tax-equivalent net interest income   29,551        28,386        25,345    
Less: tax-equivalent adjustments   (1,172)       (1,047)       (952)   
Net interest income  $28,379       $27,339       $24,393    
Interest rate spread (1)(4)    3.18%     3.17%     3.01%
Net interest margin (1)(5)    3.39%     3.39%     3.23%
Average interest-earning assets to average                 
interest-bearing liabilities   132.67 %     135.51 %     132.78 % 
                     
Supplemental Information:                    
Total deposits, including noninterest-bearing                    
demand deposits$2,807,466  $5,228  0.75% $2,666,758  $4,800  0.71% $2,543,420  $4,677  0.75%
Total deposits and borrowings, including                    
noninterest-bearing demand deposits$3,007,245  $5,805  0.78% $2,818,174  $5,300  0.75% $2,694,359  $5,185  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, 2016, December 31, 2015 and March 31, 2015, yields on loans before tax-equivalent adjustments were 4.23%, 4.18% and 4.28%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.51%, 1.51% and 1.52%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.93%, 3.90%  and 3.77%, respectively. Interest rate spread before tax-equivalent adjustments for the three months ended March 31, 2016, December 31, 2015 and March 31, 2015 was 3.05%, 3.04% and 2.89%, respectively, while net interest margin before tax-equivalent adjustments for the three months ended March 31, 2016, December 31, 2015 and March 31, 2015 was 3.26%, 3.27% and 3.11%, 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)
            
   At or For the Three Months Ended 
   March 31, 2016 December 31, 2015 March 31, 2015 
            
Key Performance Ratios         
Return on average assets (1) 0.83 %  0.80 %  0.78 %
Return on average equity (1) 5.11    4.67    4.41   
Interest rate spread  (1) (2) 3.18    3.17    3.01   
Net interest margin  (1) (3) 3.39    3.39    3.23   
Non-interest expense to average assets  (1) 2.13    2.24    2.19   
Efficiency ratio (4) 62.01    63.81    67.61   
            
   March 31, 2016 December 31, 2015 March 31, 2015 
   (Dollars in thousands) 
Asset Quality         
Non-accrual loans:         
 One- to four-family$9,662   $9,264   $13,442   
 Home equity lines of credit 1,983    1,763    1,999   
 Commercial real estate 3,686    3,663    5,307   
 Construction 14,612    15,849    7,271   
 Commercial and industrial 745    805    894   
  Total non-accrual loans 30,688    31,344    28,913   
 Foreclosed assets 638    -    1,046   
  Total non-performing assets$31,326   $31,344   $29,959   
            
Allowance for loan losses/total loans 1.06 %  1.08 %  1.07 % 
Allowance for loan losses/non-accrual loans 112.06    106.58    98.92   
Non-accrual loans/total loans 0.95    1.02    1.08   
Non-accrual loans/total assets 0.82    0.89    0.86   
Non-performing assets/total assets 0.84    0.89    0.89   
            
Capital and Share Related         
Stockholders' equity to total assets 15.62 %  16.69 %  17.43 % 
Book value per share$10.81   $10.72   $10.62   
Tangible book value per share$10.56   $10.47   $10.37   
Market value per share$13.92   $14.10   $13.17   
Shares outstanding 53,895,870    54,875,237    54,946,694   
            
            
 (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 represents non-interest expense divided by the sum of net interest income and non-interest income excluding gains or losses on securities. 
            


Contact: Richard J. Gavegnano, Chairman, President and Chief Executive Officer       (978) 977-2211

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