Meridian Bancorp, Inc (EBSB) has reported a 64.49 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $11.31 million, or $0.22 a share in the quarter, compared with $6.88 million, or $0.13 a share for the same period last year. Revenue during the quarter grew 28.03 percent to $37.73 million from $29.47 million in the previous year period. Net interest income for the quarter rose 22.24 percent over the prior year period to $33.42 million. Non-interest income for the quarter rose 109.95 percent over the last year period to $5.61 million.
Meridian Bancorp, Inc has made provision of $1.30 million for loan losses during the quarter, up 139.71 percent from $0.54 million in the same period last year.
Net interest margin contracted 8 basis points to 3.31 percent in the quarter from 3.39 percent in the last year period. Efficiency ratio for the quarter improved to 54.33 percent from 63.81 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Richard J. Gavegnano, chairman, president and chief executive officer, said, “It is my great pleasure to report record net income of $34.2 million for the year 2016, up $9.6 million, or 39%, from 2015. Our net income of $11.3 million for the fourth quarter of 2016, a new quarterly record, was up $1.8 million, or 19%, from the third quarter of 2016 and $4.4 million, or 64%, from the fourth quarter of 2015. Our earnings momentum over the past year resulted from rising net interest income, driven by our strong organic growth in loans and deposits, along with increasingly favorable trends in asset quality and operating efficiency. These results are also directly related to the hard work of the entire East Boston Savings Bank team, and all of us remain committed to building on these accomplishments to further strengthen our franchise and enhance shareholder value.”
Liabilities outpace assets growth
Total assets stood at $4,436 million as on Dec. 31, 2016, up 25.86 percent compared with $3,524.51 million on Dec. 31, 2015. On the other hand, total liabilities stood at $3,828.70 million as on Dec. 31, 2016, up 30.39 percent from $2,936.38 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $3,898.67 million as on Dec. 31, 2016, up 28.02 percent compared with $3,045.24 million on Dec. 31, 2015. Deposits stood at $3,475.84 million as on Dec. 31, 2016, up 7.63 percent compared with $3,229.57 million on Dec. 31, 2015. Investments stood at $67.66 million as on Dec. 31, 2016, down 53.48 percent or $77.78 million from year-ago. Shareholders equity stood at $607.30 million as on Dec. 31, 2016, up 3.26 percent or $19.17 million from year-ago.
Return on average assets moved up 25 basis points to 1.05 percent in the quarter from 0.80 percent in the last year period. At the same time, return on average equity increased 284 basis points to 7.51 percent in the quarter from 4.67 percent in the last year period.
Nonperforming assets moved down 57.13 percent or $17.91 million to $13.44 million on Dec. 31, 2016 from $31.34 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.30 percent in the quarter, down from 0.89 percent in the last year period.
Equity to assets ratio was 13.69 percent for the quarter, down from 16.69 percent for the previous year quarter. Book value per share was $11.33 for the quarter, up 5.69 percent or $0.61 compared to $10.72 for the same period last year.
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