Profile: Meridian Bancorp Inc (EBSB.O)
26 May 2017
Meridian Bancorp, Inc., incorporated on March 6, 2014, is a bank holding company for East Boston Savings Bank (the Bank). The Bank is a stock savings bank. The Bank conducted its business from 31 locations, one mobile branch and three loan centers in the greater Boston metropolitan area, as of December 31, 2016. The Bank offers a range of deposit and loan products to individuals and businesses located in its market, which consists of Suffolk, Middlesex and Essex Counties, Massachusetts. The Bank attracts deposits from the public and uses those funds to originate loans, which it holds for investment. The Bank's lending business also involves the purchase and sale of loan participation interests. The Bank also offers non-deposit financial products through a third-party network arrangement. It offers customers a range of non-deposit financial products, including mutual funds, annuities, stocks and bonds, which are offered and cleared by a third-party broker-dealer. It also offers customers long-term care insurance through a third-party insurance company.
The Bank's loan portfolio includes commercial real estate loans, one- to four-family residential real estate loans, multi-family real estate loans, construction loans, commercial and industrial loans, home equity lines of credit and consumer loans. Its commercial real estate loans are secured by properties used for business purposes, such as office buildings, industrial facilities and retail facilities. It originates a range of fixed- and adjustable-rate commercial real estate loans for terms and amortization periods up to 30 years. Its one- to four-family residential loan portfolio consists of mortgage loans that enable borrowers to purchase or refinance existing home. It originates a range of adjustable-rate multi-family real estate loans for terms approximately 30 years. It makes construction loans for commercial development projects, including apartment buildings, small industrial buildings, and retail and office buildings. It also originates adjustable loans to individuals and to builders to finance the construction of residential dwellings. It also originates construction and site development loans to contractors and builders to finance the construction of single-family homes and subdivisions. It offers home equity lines of credit, which are secured by one- to four-family residences. It offers automobile loans, loans secured by passbook or certificate accounts and overdraft loans. As of December 31, 2016, the Bank's total net loans amounted to $3898.66 million.
The Bank invests in various types of liquid assets, including the United States Treasury obligations, securities of various government-sponsored enterprises, residential mortgage-backed securities and municipal governments, deposits at the Federal Home Loan Bank of Boston, certificates of deposit of federally insured institutions, investment grade corporate bonds and investment grade marketable equity securities, including common stock and money market mutual funds. As of December 31, 2016, its investment portfolio consisted primarily of corporate bonds, municipal bonds, investment-grade marketable equity securities and mortgage-backed securities. As of December 31, 2016, the Bank's total securities available for sale amounted to $67.66 million.
Sources of Funds
Deposits, borrowings and loan repayments are the sources of the Bank's funds for lending and other investment purposes. The Bank offers a range of deposit instruments, including non-interest-bearing demand deposits (such as checking accounts), interest-bearing demand accounts, such as negotiable order of withdrawal (NOW) and money market accounts, savings accounts and certificates of deposit. In addition to accounts for individuals, it also offers several commercial checking accounts designed for the businesses operating in its market area. As of December 31, 2016, the Bank's total deposits amounted to $3475.83 million.
Meridian Bancorp Inc
10 Meridian St
BOSTON MA 02128-1963