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Meridian Bancorp, the holding company of East Boston Savings Bank, continues to press ahead with its expansion plan after another strong quarter for the company.
“Progress is continuing toward completion of our acquisition of Meetinghouse Bancorp Inc. and Meetinghouse Bank, with approximately $117 million in assets, $80 million in loans, $98 million in deposits and two branches in Dorchester and Roslindale,” Richard J. Gavegnano, chairman, president and CEO of the company, said in a statement. “Meetinghouse has received shareholder approval for its acquisition by Meridian, with closing of the transaction subject to regulatory approvals and other customary closing conditions.”
Gavegnano also said the bank is continuing to expand the core banking franchise, with plans to open four new branches in Brighton and Mission Hill in Boston, as well as neighborhoods in Lynnfield and West Peabody.
Net income for the quarter was $13.3 million, or $0.25 per diluted share, up almost $4 million from the third quarter of 2016.
Net interest income for the quarter ending Sept. 30 was $38.1 million, up $6.8 million, from the third quarter of 2016.
The net interest margin, at 3.3 percent, was up six basis points from the linked quarter and down two basis points from this time last year.
The company’s also saw an improved efficiency ratio below 50 percent.
“The improvement in our efficiency ratio to 49.04 percent in the third quarter of 2017 from 53.95 percent in the second quarter reflected the 7 percent rise in net interest income, the $1.7 million gain on a distribution from a bank-owned life insurance policy and a $591,000 decline in non-interest expenses,” said Gavegnano. “With enhancements to our regulatory compliance infrastructure virtually completed, the related overhead expenses levels are stabilizing.”
Total deposits reached $3.95 billion, up more than $700 million year-over-year.
Since Meridian’s second-step stock offering in July 2014, total assets have increased by $2 billion to climb over $5 billion.
Total loans are at $4.5 billion, up about $850 million year-over-year, led by increases in construction, commercial real estate and multi-family loans.
The company’s provision for loan losses was $2.5 million for the quarter, up $1.6 million from the quarter ended September 30, 2016. The allowance for loan losses in the third quarter was 1 percent of total loans compared to 1.04 percent of total loans at the end of the third quarter of 2016.
