GlobeNewswire Inc | Oct 21, 2021 04:05PM EDT

October 21, 2021

BOSTON, Oct. 21, 2021 (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 $18.3 million, or $0.36 per diluted share, for the quarter ended September30, 2021, compared to $16.5 million, or $0.32 per diluted share for the quarter ended June 30, 2021, and $16.7 million, or $0.33 per diluted share, for the quarter ended September30, 2020. For the nine months ended September 30, 2021, net income was $59.2 million, or $1.17 per diluted share, up from $46.9 million, or $0.93 per diluted share, for the nine months ended September 30, 2020. The Companys return on average assets was 1.17% for the quarter ended September30, 2021, compared to 1.03% for the quarter ended June 30, 2021, and 1.03% for the quarter ended September30, 2020. For the nine months ended September 30, 2021, the Companys return on average assets was 1.22%, up from 0.98% for the nine months ended September 30, 2020. The Companys return on average equity was 9.03% for the quarter ended September30, 2021, compared to 8.32% for the quarter ended June 30, 2021, and 8.94% for the quarter ended September30, 2020. For the nine months ended September 30, 2021, the Companys return on average equity was 9.91%, up from 8.50% for the nine months ended September 30, 2020.

The Companys net interest income was $46.0 million for the quarter ended September30, 2021, a decrease of $2.8 million, or 5.7%, from the quarter ended September30, 2020. The interest rate spread and net interest margin on a tax-equivalent basis were 2.91% and 3.05%, respectively, for the quarter ended September30, 2021 compared to 2.91% and 3.13%, respectively, for the quarter ended September30, 2020. For the nine months ended September30, 2021 net interest income increased $935,000, or 0.7%, to $142.2 million compared to $141.3 million for the nine months ended September30, 2020. The interest rate spread and net interest margin on a tax-equivalent basis were 2.92% and 3.07% for the nine months ended September30, 2021 compared to 2.81% and 3.07% for the nine months ended September30, 2020.

Total interest and dividend income totaled $52.6 million for the quarter ended September30, 2021, a decrease of $9.0 million, or 14.6% from the quarter ended September30, 2020, primarily due to a 12.8% decrease in the Companys average loan balances to $4.947 billion. For the nine months ended September30, 2021 the Companys total interest and dividend income totaled $165.8 million, a decrease of $24.0 million, or 12.7%, from the nine months ended September30, 2020, primarily due to a decrease in the Companys average loan balances of $534.6 million, or 9.4%, to $5.177 billion.

Total interest expense totaled $6.6 million for the quarter ended September30, 2021, a decrease of $6.2 million, or 48.6%, from the quarter ended September30, 2020. Interest expense on deposits decreased to $3.1 million for the quarter ended September30, 2021, a decrease of $5.7 million, or 64.8%, from the quarter ended September30, 2020, primarily due to a decrease in the cost of average total deposits to 0.25% from 0.72% for the quarter ended September30, 2020. The Companys total cost of funds was 0.48% for the quarter ended September30, 2021, a decrease of 42 basis points from 0.90% for the quarter ended September30, 2020. For the nine months ended September30, 2021, total interest expense totaled $23.6 million, a decrease of $24.9 million, or 51.4%, from the nine months ended September30, 2020, primarily due to a decrease in the cost of average total deposits to 0.35% from 0.99% for the nine months ended September30, 2020. The Companys total cost of funds was 0.56% for the nine months ended September30, 2021, down 60 basis points from the nine months ended September30, 2020.

The Companys provision for credit losses was $217,000 for the quarter ended September30, 2021, compared to a provision of $7.2 million for the quarter ended September30, 2020. For the nine months ended September30, 2021 the Company recognized a provision reversal of $4.3 million compared to a provision of $17.5 million for the nine months ended September30, 2020. The allowance for credit losses on loans was $60.8 million, or 1.24%, of total loans at September30, 2021, compared to $68.8 million, or 1.25%, of total loans at December 31, 2020. Non-performing assets were $6.9 million, or 0.11% of total assets, at September30, 2021, compared to $3.6 million, or 0.05% of total assets, at September 30, 2020.

Non-interest income was $3.1 million for the quarter ended September 30, 2021, a decrease of $509,000, or 14.2%, from the quarter ended September 30, 2020, primarily due to a decrease of $486,000 in mortgage banking gains, net. For the nine months ended September30, 2021, non-interest income decreased $355,000, or 3.1%, to $11.0 million from $11.4 million for the nine months ended September30, 2020, primarily due to a $4.2 million gain on sale of asset realized in 2020, a $623,000 decrease in loan fees and a $388,000 decrease in mortgage banking gains, net, partially offset by a $2.6 million valuation increase on marketable equity securities, net, a $1.5 million increase in gain on sale of equity securities, net, and a $976,000 increase in customer service fees.

Non-interest expenses were $24.5 million, or 1.57% of average assets for the quarter ended September 30, 2021, compared to $22.8 million, or 1.41% of average assets for the quarter ended September 30, 2020. The Companys efficiency ratio was 47.53% for the quarter ended September 30, 2021 compared to 43.69% for the quarter ended September 30, 2020. For the nine months ended September30, 2021, non-interest expenses increased $5.7 million, or 7.8%, to $78.1 million from $72.5 million for the nine months ended September30, 2020, due primarily to $3.4 million in expense for a legal judgment related to a loan assumed in the Mt. Washington Bank acquisition included in other general and administrative and $2.3 million in merger and acquisition related expenses realized in the second and third quarters of 2021. For the nine months ended September 30, 2021 the efficiency ratio was 50.11% compared to 48.10% for the nine months ended September 30, 2020.

The Company recorded a provision for income taxes of $6.0 million for the quarter ended September 30, 2021, reflecting an effective tax rate of 24.7%, compared to $5.7 million, or an effective rate of 25.5%, for the quarter ended September 30, 2020. For the nine months ended September 30, 2021 the provision for income taxes was $20.2 million, reflecting an effective tax rate of 25.4%, compared to $15.8 million, reflecting an effective rate of 25.1% for the nine months ended September 30, 2020.

Total assets were $6.128 billion at September 30, 2021, down $491.5 million, or 7.4%, from $6.620 billion at December 31, 2020. Net loans were $4.850 billion at September 30, 2021, down $593.6 million, or 10.9%, from December 31, 2020, despite loan originations of $701.1 million during the nine months ended September 30, 2021. The allowance for credit losses on loans decreased $8.0 million, or 11.6%, to $60.8 million during the nine months ended September 30, 2021 from $68.8 million at December 31, 2020, primarily due to changes in the volume and mix of the loan portfolio.

Total deposits were $4.693 billion at September 30, 2021, down $388.0 million, or 7.6%, from $5.081 billion at December 31, 2020. Core deposits, which exclude certificates of deposit, decreased $50.3 million, or 1.3%, during the nine months ended September 30, 2021 to $3.812 billion, or 81.2% of total deposits, compared to 76.0% at December 31, 2020. The decrease in core deposits included the payoff of $175.6 million in brokered interest-bearing demand deposits. Certificates of deposit decreased $337.7 million during the nine months ended September 30, 2021, inclusive of a $87.0 million decrease in brokered certificates of deposit. Total borrowings were $560.6 million at September 30, 2021, down $147.6 million, or 20.8%, from December 31, 2020, primarily due to $50.0 million in matured advances from the FHLB and paying down all borrowings from the Federal Reserves PPPLF program.

Total stockholders equity increased $44.8 million, or 5.8%, to $813.7 million at September 30, 2021 from $768.9 million at December 31, 2020. The increase for the nine months ended September 30, 2021 was primarily due to net income of $59.2 million, partially offset by dividends of $0.30 per share totaling $15.1 million. Stockholders equity to assets was 13.28% at September 30, 2021, compared to 11.61% at December 31, 2020. Tangible book value per share increased to $15.02 at September 30, 2021 from $14.25 at December 31, 2020. Market price per share increased 39.2% to $20.76 at September 30, 2021 from $14.91 at December 31, 2020. The Company and the Bank exceeded the minimum requirement to be considered well capitalized at September 30, 2021.

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 43 branches in the greater Boston metropolitan area, including 42 full-service locations and one mobile branch. 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, the effects of any health pandemic, changes in interest rates, regulatory considerations, and competition and the risk factors described in the Companys 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited)

September June 30, December September 30, 2021 31, 30, 2021 2020 2020 (Dollars in thousands) ASSETS Cash and due $ 1,052,553 $ 1,101,359 $ 914,586 $ 702,138 from banksSecuritiesavailable for 9,170 9,810 11,326 12,183 sale, at fairvalueMarketableequity 10 9,112 12,189 16,203 securities, atfair valueFederal HomeLoan Bank stock, 26,184 26,184 30,658 33,282 at costLoans held for 2,408 5,711 8,224 11,662 saleLoans: One- to 468,796 489,310 564,146 604,037 four-familyHome equity 54,170 56,032 68,721 73,581 lines of creditMulti-family 765,262 809,317 880,552 941,409 Commercial real 2,243,290 2,295,030 2,499,660 2,595,124 estateConstruction 707,503 645,622 731,432 666,375 Commercial and 670,116 703,745 765,195 766,418 industrialConsumer 9,296 9,749 10,707 12,213 Total loans 4,918,433 5,008,805 5,520,413 5,659,157 Allowance forcredit losses on (60,849 ) (64,300 ) (68,824 ) (67,639 ) loansNet deferredloan origination (7,333 ) (7,930 ) (7,784 ) (7,717 ) feesLoans, net 4,850,251 4,936,575 5,443,805 5,583,801 Bank-owned life 42,670 42,402 41,877 41,606 insurancePremises and 63,321 64,649 66,850 67,917 equipment, netAccrued interest 17,631 19,932 23,173 21,460 receivableDeferred tax 20,865 21,437 21,355 17,007 asset, netGoodwill 20,378 20,378 20,378 20,378 Core deposit 1,341 1,445 1,651 1,769 intangibleOther assets 21,592 28,147 23,776 37,327 Total assets $ 6,128,374 $ 6,287,141 $ 6,619,848 $ 6,566,733 LIABILITIES ANDSTOCKHOLDERS' EQUITYDeposits: Noninterest-bearing $ 818,350 $ 801,612 $ 711,573 $ 707,458 demand depositsInterest-bearing 1,331,001 1,270,484 1,364,548 1,353,153 demand depositsMoney market 833,125 863,526 930,507 789,712 depositsRegular savingsand other 829,194 866,191 855,329 850,810 depositsCertificates of 881,509 1,061,914 1,219,210 1,250,894 depositTotal deposits 4,693,179 4,863,727 5,081,167 4,952,027 Short-term ? ? ? 25,000 borrowingsLong-term debt 560,625 560,625 708,245 779,279 Accrued expensesand other 60,872 61,575 61,551 62,163 liabilitiesTotal 5,314,676 5,485,927 5,850,963 5,818,469 liabilitiesStockholders' equity:Preferred stock,$0.01 par value,50,000,000 ? ? ? ? sharesauthorized; noneissuedCommon stock,$0.01 par value,100,000,000shares authorized;52,711,409,52,608,747,52,415,061 and52,413,120sharesissued atSeptember 30,2021, June 30,2021, 527 526 524 524 December 31,2020 andSeptember 30,2020,respectivelyAdditional 364,844 365,607 363,995 363,093 paid-in capitalRetained 464,384 451,100 420,297 400,649 earningsAccumulatedother (184 ) (146 ) (58 ) 91 comprehensive(loss) incomeUnearnedcompensation -ESOP; 2,191,745, 2,191,745,2,191,745and 2,222,186shares atSeptember 30,2021, June 30,2021, (15,873 ) (15,873 ) (15,873 ) (16,093 ) December 31,2020 andSeptember 30,2020,respectivelyTotalstockholders' 813,698 801,214 768,885 748,264 equityTotalliabilities and $ 6,128,374 $ 6,287,141 $ 6,619,848 $ 6,566,733 stockholders'equity

MERIDIAN BANCORP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF NET INCOME(Unaudited)

Three Months Ended Nine Months Ended September June 30, September September September 30, 2021 30, 30, 30, 2021 2020 2021 2020 (Dollars in thousands, except per share amounts) Interest and dividend income:Interest and $ 51,964 $ 54,918 $ 60,918 $ 164,044 $ 186,400 fees on loansInterest on debt 57 61 76 183 263 securitiesDividends onmarketable 40 90 118 254 357 equitysecuritiesInterest oncertificates of ? ? ? ? 1 depositOther interestand dividend 555 361 494 1,286 2,753 incomeTotal interestand dividend 52,616 55,430 61,606 165,767 189,774 incomeInterest expense:Interest on 3,081 4,209 8,746 13,019 36,106 depositsInterest onshort-term ? ? 52 ? 112 borrowingsInterest on 3,491 3,453 3,999 10,535 12,278 borrowingsTotal interest 6,572 7,662 12,797 23,554 48,496 expenseNet interest 46,044 47,768 48,809 142,213 141,278 incomeProvision(reversal) for 217 749 7,163 (4,270 ) 17,529 credit lossesNet interestincome, afterprovision 45,827 47,019 41,646 146,483 123,749 (reversal) forcredit lossesNon-interest income:Customer service 2,530 2,485 2,193 7,214 6,238 feesLoan fees 146 39 264 280 903 Mortgage banking 218 45 704 845 1,233 gains, netGain on sale of ? ? ? ? 4,195 asset(Loss) gain onmarketable (104 ) 200 122 1,881 (2,197 )equitysecurities, netIncome frombank-owned life 268 264 272 793 842 insuranceOther income 5 17 17 31 185 Totalnon-interest 3,063 3,050 3,572 11,044 11,399 incomeNon-interest expenses:Salaries andemployee 13,941 13,939 13,426 43,396 43,198 benefitsOccupancy and 3,644 3,900 3,734 11,775 11,397 equipmentData processing 2,354 2,273 2,196 6,868 6,466 Marketing and 663 1,032 554 2,591 2,814 advertisingProfessional 704 691 688 2,125 2,380 servicesDeposit 406 345 692 1,264 1,967 insuranceMerger and 1,158 1,115 ? 2,273 ? acquisitionOther generaland 1,677 4,738 1,540 7,831 4,229 administrativeTotalnon-interest 24,547 28,033 22,830 78,123 72,451 expensesIncome before 24,343 22,036 22,388 79,404 62,697 income taxesProvision for 6,007 5,490 5,714 20,202 15,767 income taxesNet income $ 18,336 $ 16,546 $ 16,674 $ 59,202 $ 46,930 Earnings per share:Basic $ 0.36 $ 0.33 $ 0.33 $ 1.18 $ 0.93 Diluted $ 0.36 $ 0.32 $ 0.33 $ 1.17 $ 0.93 Weighted averageshares outstanding:Basic 50,470,710 50,375,468 50,169,024 50,362,807 50,311,231 Diluted 50,865,435 50,943,160 50,248,048 50,792,228 50,459,326

MERIDIAN BANCORP, INC. AND SUBSIDIARIESNET INTEREST INCOME ANALYSIS(Unaudited)

Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 Average Average Interest Yield/ Average Interest Yield/ Balance Interest Yield/ Balance (1) Cost (1)(6) Balance (1) Cost (1)(6) (1) Cost(1)(6) (Dollars in thousands)Assets: Interest-earning assets: Loans (2) $ 4,947,057 $ 52,723 4.23 % $ 5,160,579 $ 55,702 4.33 % $ 5,671,957 $ 61,682 4.33 %Securities and certificates of deposit 14,886 108 2.88 19,445 171 3.53 29,263 219 2.98 Other interest-earning assets (3) 1,128,550 555 0.20 1,099,850 361 0.13 604,916 494 0.32 Total interest-earning assets 6,090,493 53,386 3.48 6,279,874 56,234 3.59 6,306,136 62,395 3.94 Noninterest-earning assets 158,025 154,470 161,886 Total assets $ 6,248,518 $ 6,434,344 $ 6,468,022 Liabilities and stockholders' equity: Interest-bearing liabilities: Interest-bearing demand deposits $ 1,312,061 $ 669 0.20 $ 1,403,276 $ 959 0.27 $ 1,291,341 $ 1,946 0.60 Money market deposits 866,553 326 0.15 859,189 471 0.22 769,571 1,270 0.66 Regular savings and other deposits 849,253 217 0.10 870,508 333 0.15 834,368 966 0.46 Certificates of deposit 978,573 1,869 0.76 1,116,928 2,446 0.88 1,262,433 4,564 1.44 Total interest-bearing deposits 4,006,440 3,081 0.31 4,249,901 4,209 0.40 4,157,713 8,746 0.84 Borrowings 560,625 3,491 2.47 560,625 3,453 2.47 804,281 4,051 2.00 Total interest-bearing liabilities 4,567,065 6,572 0.57 4,810,526 7,662 0.64 4,961,994 12,797 1.03 Noninterest-bearing demand deposits 814,961 777,688 702,717 Other noninterest-bearing liabilities 54,669 50,409 57,636 Total liabilities 5,436,695 5,638,623 5,722,347 Total stockholders' equity 811,823 795,721 745,675 Total liabilities and stockholders' $ 6,248,518 $ 6,434,344 $ 6,468,022 equityNet interest-earning assets $ 1,523,428 $ 1,469,348 $ 1,344,142 Fully tax-equivalent net interest 46,814 48,572 49,598 incomeLess: tax-equivalent adjustments (770 ) (803 ) (789 ) Net interest income $ 46,044 $ 47,769 $ 48,809 Interest rate spread (1)(4) 2.91 % 2.95 % 2.91 %Net interest margin (1)(5) 3.05 % 3.10 % 3.13 %Average interest-earning assets to averageinterest-bearing liabilities 133.36 % 130.54 % 127.09 % Supplemental Information: Total deposits, including noninterest-bearingdemand deposits $ 4,821,401 $ 3,081 0.25 % $ 5,027,589 $ 4,209 0.34 % $ 4,860,430 $ 8,746 0.72 %Total deposits and borrowings, includingnoninterest-bearing demand deposits $ 5,382,026 $ 6,572 0.48 % $ 5,588,214 $ 7,662 0.55 % $ 5,664,711 $ 12,797 0.90 %

____________________ Income on debt securities, marketable 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 September 30, 2021, June 30, 2021, and September 30, 2020, yields on loans before tax-equivalent adjustments were 4.17%, 4.27% and 4.27%, respectively,(1) yields on securities and certificates of deposit before tax-equivalent adjustments were 2.59%, 3.11% and 2.64%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.43%, 3.54% and 3.89%, respectively. Interest rate spread before tax-equivalent adjustments for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020 was 2.86%, 2.90% and 2.86%, respectively, while net interest margin before tax-equivalent adjustments for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020 was 3.00%, 3.05% and 3.08%, respectively.(2) Loans on non-accrual status are included in average balances.(3) Includes Federal Home Loan Bank stock and associated dividends. Interest rate spread represents the difference between the tax-equivalent(4) 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 SUBSIDIARIESNET INTEREST INCOME ANALYSIS(Unaudited)

Nine Months Ended September 30, 2021 September 30, 2020 Average Interest(1) Yield/ Average Interest(1) Yield/ Balance Cost (1) Balance Cost (1) (Dollars in thousands)Assets: Interest-earning assets:Loans (2) $ 5,177,216 $ 166,379 4.30 % $ 5,711,852 $ 188,603 4.41 %Securities and 18,368 479 3.49 29,201 676 3.09 certificates of depositOther interest-earning 1,095,483 1,286 0.16 495,054 2,753 0.74 assets (3)Total interest-earning 6,291,067 168,144 3.57 6,236,107 192,032 4.11 assetsNoninterest-earning 158,898 159,039 assetsTotal assets $ 6,449,965 $ 6,395,146 Liabilities and stockholders' equity:Interest-bearing liabilities:Interest-bearing demand $ 1,391,975 $ 3,037 0.29 $ 1,289,479 $ 8,736 0.90 depositsMoney market deposits 867,744 1,577 0.24 728,024 4,551 0.84 Regular savings and 860,355 1,085 0.17 860,593 4,493 0.70 other depositsCertificates of deposit 1,105,381 7,320 0.89 1,356,139 18,326 1.81 Total interest-bearing 4,225,455 13,019 0.41 4,234,235 36,106 1.14 depositsBorrowings 596,646 10,535 2.36 738,058 12,390 2.24 Total interest-bearing 4,822,101 23,554 0.65 4,972,293 48,496 1.30 liabilitiesNoninterest-bearing 775,951 630,072 demand depositsOthernoninterest-bearing 52,470 56,420 liabilitiesTotal liabilities 5,650,522 5,658,785 Total stockholders' 796,443 736,361 equityTotal liabilities and $ 6,446,965 $ 6,395,146 stockholders' equityNet interest-earning $ 1,468,966 $ 1,263,814 assetsFully tax-equivalent 144,590 143,536 net interest incomeLess: tax-equivalent (2,377 ) (2,258 ) adjustmentsNet interest income $ 142,213 $ 141,278 Interest rate spread 2.92 % 2.81 %(1)(4)Net interest margin (1) 3.07 % 3.07 %(5)Averageinterest-earning assets to averageinterest-bearing 130.46 % 125.42 % liabilities Supplemental Information:Total deposits,including noninterest-bearingdemand deposits $ 5,001,406 $ 13,019 0.35 % $ 4,864,307 $ 36,106 0.99 %Total deposits and borrowings, includingnoninterest-bearing $ 5,598,052 $ 23,554 0.56 % $ 5,602,365 $ 48,496 1.16 %demand deposits

____________________ Income on debt securities, marketable 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 nine months ended September 30, 2021 and 2020, yields on loans before tax-equivalent adjustments were(1) 4.24%, and 4.36%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 3.18% and 2.84%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.52% and 4.06%, respectively. Interest rate spread before tax-equivalent adjustments for the nine months ended September 30, 2021 and 2020 was 2.87% and 2.76%, respectively, while net interest margin before tax-equivalent adjustments for the nine months ended September 30, 2021 and 2020 was 3.02%, and 3.03%, respectively.(2) Loans on non-accrual status are included in average balances.(3) Includes Federal Home Loan Bank stock and associated dividends. Interest rate spread represents the difference between the tax-equivalent(4) 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 SUBSIDIARIESSELECTED FINANCIAL HIGHLIGHTS(Unaudited)

Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2021 2021 2020 2021 2020KeyPerformance RatiosReturn onaverage 1.17 % 1.03 % 1.03 % 1.22 % 0.98 %assets (1)Return onaverage 9.03 8.32 8.94 9.91 8.50 equity (1)Interestrate spread 2.91 2.95 2.91 2.92 2.81 (1) (2)Net interestmargin (1) 3.05 3.10 3.13 3.07 3.07 (3)Non-interestexpense to 1.57 1.74 1.41 1.61 1.51 averageassets (1)Efficiency 47.53 53.18 43.69 50.11 48.10 ratio (4)

September 30, June 30, December 31, September 30, 2021 2021 2020 2020 (Dollars in thousands)Asset Quality Non-accrual loans:One- to $ 1,605 $ 1,633 $ 2,617 $ 3,041 four-familyHome equitylines of 339 20 20 20 creditCommercial 5,005 8,176 ? ? real estateCommercial and ? 635 527 541 industrialTotalnon-accrual 6,949 10,464 3,164 3,602 loansForeclosed ? ? ? ? assetsTotalnon-performing $ 6,949 $ 10,464 $ 3,164 $ 3,602 assets Allowance forcredit losses 1.24 % 1.28 % 1.25 % 1.20 %on loans/totalloansAllowance forcredit losseson loans/ 875.65 614.49 2,175.22 1,877.82 non-accrualloansNon-accrualloans/total 0.14 0.21 0.06 0.06 loansNon-accrualloans/total 0.11 0.17 0.05 0.05 assetsNon-performingassets/total 0.11 0.17 0.05 0.05 assets Capital and Share RelatedStockholders'equity to 13.28 % 12.74 % 11.61 % 11.39 %total assetsBook value per $ 15.44 $ 15.23 $ 14.67 $ 14.28 shareTangible bookvalue per $ 15.02 $ 14.81 $ 14.25 $ 13.85 share (5)Market value $ 20.76 $ 20.46 $ 14.91 $ 10.35 per shareShares 52,711,409 52,608,747 52,415,061 52,413,120 outstanding

____________________(1) Annualized. Interest rate spread represents the difference between the tax-equivalent(2) 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. The efficiency ratio is a non-GAAP measure representing non-interest expense, excluding merger and acquisition expenses, divided by the sum of net interest income and non-interest income excluding gains and losses on marketable equity securities and gains and losses on sale of assets. The efficiency ratio is a common measure used by banks to understand expenses related to the generation of revenue. We have removed gains and losses on marketable equity securities, gains and losses on sale of assets, and(4) merger and acquisition expenses as management deems them to be either discretionary or market driven and not representative of operating performance. Presented on a basis including gains and losses on marketable equity securities, gains and losses on sale of assets, and merger and acquisition expenses the efficiency ratio was 49.99%, 55.16% and 43.58% for the quarters ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively and 50.98% and 47.45% for the nine months ended September 30, 2021 and 2020, respectively. Tangible book value per share represents total stockholders? equity less(5) goodwill and other intangible assets divided by the number of shares outstanding.

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