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, 2017December 31, 2016March 31, 2016
   Average
Balance
  Interest (1)  Yield
Cost
(1)(6)
   Average
Balance
  Interest (1) Yield
Cost
(1)(6)
 Average
Balance
  Interest (1)  Yield
Cost
(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