Meridian Bancorp, Inc. Announces 25% Increase in Quarterly Dividend and New Stock Repurchase Program

Rhea-AI Summary

Meridian Bancorp, Inc. (NASDAQ: EBSB) has declared a quarterly cash dividend of $0.10 per common share, reflecting a 25% increase from the previous rate. This dividend is payable on April 1, 2021, to stockholders of record by March 18, 2021. Additionally, the company announced a new stock repurchase program allowing for the buyback of up to 1,000,000 shares, approximately 1.9% of its outstanding stock. CEO Richard J. Gavegnano emphasized the commitment to enhancing shareholder value through these actions, which align with expected earnings trends and strong asset quality.

Positive

• Quarterly cash dividend increased by 25% to $0.10 per share, improving shareholder value.
• New stock repurchase program allows for the buyback of up to 1,000,000 shares, potentially enhancing stock value.
• The annualized dividend rate is now $0.40 per share, indicating strong financial performance.

Negative

• None.

BOSTON, Feb. 24, 2021 (GLOBE NEWSWIRE) -- Meridian Bancorp, Inc. (the “Company” or “Meridian”) (NASDAQ: EBSB), the holding company for East Boston Savings Bank, today declared a quarterly cash dividend of $0.10 per common share, an increase of $0.02 per common share, or 25%, payable on April 1, 2021 to stockholders of record at the close of business on March 18, 2021. The Company also announced that it has adopted a new stock repurchase program for up to 1,000,000 shares, or approximately 1.9% of its outstanding common stock.

Richard J. Gavegnano, Chairman, President and Chief Executive Officer of the Company, said, “Consistent with our commitment to enhancing stockholder value, our Board of Directors approved this stock repurchase program and 25% increase in our dividend, to an annualized rate of $0.40 per share, based on our expected earnings trends and continued strength of our asset quality.”

Repurchases will be made outside of the regular quarterly trading blackouts surrounding the Company’s public release of its results of operations, and consistent with the Company’s trading policies. Shares may be repurchased in open market or private transactions, through block trades, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission.

Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance.  Open market purchases will be subject to the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements.

Repurchases under this authorization may be suspended, terminated or modified by the Company at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Company is not obligated to repurchase any particular number of shares.

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 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.

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

FAQ

What is the new dividend amount declared by Meridian Bancorp for EBSB in 2021?

Meridian Bancorp declared a quarterly cash dividend of $0.10 per common share, an increase of 25%.

When is the dividend payable for EBSB shareholders?

The dividend is payable on April 1, 2021, to stockholders of record as of March 18, 2021.

What is the purpose of Meridian Bancorp's new stock repurchase program?

The stock repurchase program aims to enhance shareholder value by buying back up to 1,000,000 shares.

How does the stock repurchase affect EBSB's share value?

The buyback may increase the value of remaining shares by reducing the total outstanding shares.

What is the significance of Meridian Bancorp's dividend increase?

The 25% increase in the dividend reflects confidence in the company's earnings trends and asset quality.