10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2015

OR

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                         

Commission file number 001-36573

Meridian Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Maryland	46-5396964
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

67 Prospect Street, Peabody, Massachusetts	01960
(Address of Principal Executive Offices)	(Zip Code)

(617) 567-1500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	¨	Accelerated Filer	x
Non-Accelerated Filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

At July 31, 2015 the registrant had 54,968,757 shares of $0.01 par value common stock outstanding.

MERIDIAN BANCORP, INC.

FORM 10-Q

INDEX

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets at June 30, 2015 and December 31, 2014		3
	Consolidated Statements of Net Income for the three and six months ended June 30, 2015 and 2014		4
	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2015 and 2014		5
	Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2015 and 2014		6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014		7
	Notes to Consolidated Financial Statements		9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		43
Item 4.	Controls and Procedures		44
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings		45
Item 1A.	Risk Factors		45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		45
Item 3.	Defaults Upon Senior Securities		45
Item 4.	Mine Safety Disclosures		45
Item 5.	Other Information		45
Item 6.	Exhibits		46
	Signatures		47
	Exhibit 31.1		48
	Exhibit 31.2		49
	Exhibit 32		50

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
	2015			2014
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	176,654		$	205,732
Certificates of deposit		95,000			85,000
Securities available for sale, at fair value		175,171			203,521
Federal Home Loan Bank stock, at cost		12,725			12,725
Loans held for sale		5,154			971
Loans, net of fees and costs		2,744,825			2,677,376
Less: allowance for loan losses		(30,109	)		(28,469	)
Loans, net		2,714,716			2,648,907
Bank-owned life insurance		39,201			38,611
Foreclosed real estate, net		1,046			1,046
Premises and equipment, net		38,700			38,512
Accrued interest receivable		8,054			7,748
Deferred tax asset, net		17,368			15,610
Goodwill		13,687			13,687
Other assets		4,785			6,456
Total assets	$	3,302,261		$	3,278,526
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non interest-bearing	$	351,236		$	285,990
Interest-bearing		2,199,930			2,217,945
Total deposits		2,551,166			2,503,935
Long-term debt		140,817			171,899
Accrued expenses and other liabilities		21,681			24,982
Total liabilities		2,713,664			2,700,816
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued		—			—
Common stock, $0.01 par value, 100,000,000 shares authorized; 54,965,555 and 54,708,066 shares issued at June 30, 2015 and December 31, 2014, respectively		550			547
Additional paid-in capital		412,367			411,476
Retained earnings		196,705			184,715
Accumulated other comprehensive income		364			2,898
Unearned compensation - ESOP, 2,861,446 and 2,922,328 shares at June 30, 2015 and December 31, 2014, respectively		(20,723	)		(21,164	)
Unearned compensation - restricted shares, 193,595 and 138,838 shares at June 30, 2015 and December 31, 2014, respectively		(666	)		(762	)
Total stockholders’ equity		588,597			577,710
Total liabilities and stockholders’ equity	$	3,302,261		$	3,278,526

See accompanying notes to consolidated financial statements.

3

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF NET INCOME

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014 (1)		2015		2014 (1)
	(Dollars in thousands, except per share amounts)
Interest and dividend income:
Interest and fees on loans	$	28,546	$	25,112	$	56,878	$	49,547
Interest on debt securities:
Taxable		434		630		945		1,375
Tax-exempt		41		44		83		89
Dividends on equity securities		421		377		808		690
Interest on certificates of deposit		157		—		293		—
Other interest and dividend income		188		138		358		228
Total interest and dividend income		29,787		26,301		59,365		51,929
Interest expense:
Interest on deposits		4,359		4,407		9,036		8,812
Interest on borrowings		482		655		990		1,276
Total interest expense		4,841		5,062		10,026		10,088
Net interest income		24,946		21,239		49,339		41,841
Provision for loan losses		3,651		696		3,711		829
Net interest income, after provision for loan losses		21,295		20,543		45,628		41,012
Non-interest income:
Customer service fees		2,003		1,860		3,760		3,659
Loan fees		230		106		396		319
Mortgage banking gains, net		268		267		378		387
Gain on sales of securities, net		1,424		1,505		2,444		3,065
Income from bank-owned life insurance		294		293		590		574
Other income		—		6		1		17
Total non-interest income		4,219		4,037		7,569		8,021
Non-interest expenses:
Salaries and employee benefits		10,717		10,017		21,884		20,818
Occupancy and equipment		2,368		2,216		4,988		4,777
Data processing		1,249		909		2,512		2,070
Marketing and advertising		895		688		1,789		1,495
Professional services		664		659		1,337		1,300
Foreclosed real estate		15		199		29		210
Deposit insurance		479		531		940		1,082
Other general and administrative		960		1,062		1,936		1,950
Total non-interest expenses		17,347		16,281		35,415		33,702
Income before income taxes		8,167		8,299		17,782		15,331
Provision for income taxes		2,582		2,795		5,792		5,056
Net income	$	5,585	$	5,504	$	11,990	$	10,275
Earnings per share:
Basic	$	0.11	$	0.10	$	0.23	$	0.19
Diluted	$	0.11	$	0.10	$	0.23	$	0.19
Weighted average shares:
Basic		52,074,889		53,047,448		51,969,106		53,029,783
Diluted		53,166,560		54,125,765		53,085,679		54,097,780

(1) Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

See accompanying notes to consolidated financial statements.

4

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Net income	$	5,585		$	5,504		$	11,990		$	10,275
Other comprehensive income (loss):
Securities available for sale:
Unrealized holding gain (loss) on securities available for sale		(790	)		3,719			(1,751	)		5,285
Reclassification adjustment for gains realized in income (1)		(1,424	)		(1,505	)		(2,444	)		(3,065	)
Net unrealized gain (loss)		(2,214	)		2,214			(4,195	)		2,220
Tax effect		871			(858	)		1,661			(839	)
Total other comprehensive income (loss)		(1,343	)		1,356			(2,534	)		1,381
Comprehensive income	$	4,242		$	6,860		$	9,456		$	11,656

(1) Amounts are included in gain on sales of securities, net, in the Consolidated Statements of Net Income. The provision for income taxes associated with the reclassification adjustments for the three months ended June 30, 2015 and 2014 was $560,000 and $583,000 and for the six months ended June 30, 2015 and 2014 was $968,000 and $1.2 million, respectively.

See accompanying notes to consolidated financial statements.

5

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Six Months Ended June 30, 2015 and 2014

(Unaudited)

	Shares of Common Stock Outstanding (1)			Common Stock		Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income			Treasury Stock			Unearned Compensation - ESOP			Unearned Compensation - Restricted Shares			Total
	(Dollars in thousands)
Six Months Ended June 30, 2014
Balance at December 31, 2013		54,406,335		$	—	$	99,553		$	162,388	$	4,104		$	(9,919	)	$	(5,796	)	$	(1,125	)	$	249,205
Comprehensive income		—			—		—			10,275		1,381			—			—			—			11,656
ESOP shares earned (50,682 shares)		—			—		307			—		—			—			207			—			514
Share-based compensation expense, net of awards surrendered		(1,861	)		—		232			—		—			—			—			202			434
Excess tax benefits in connection with share-based compensation		—			—		77			—		—			—			—			—			77
Stock options exercised		27,471			—		(101	)		—		—			150			—			—			49
Balance at June 30, 2014		54,431,945		$	—	$	100,068		$	172,663	$	5,485		$	(9,769	)	$	(5,589	)	$	(923	)	$	261,935
Six Months Ended June 30, 2015
Balance at December 31, 2014		54,708,066		$	547	$	411,476		$	184,715	$	2,898		$	—		$	(21,164	)	$	(762	)	$	577,710
Comprehensive income		—			—		—			11,990		(2,534	)		—			—			—			9,456
ESOP shares earned (60,882 shares)		—			—		324			—		—			—			441			—			765
Share-based compensation expense, net of awards surrendered		87,210			1		191			—		—			—			—			96			288
Excess tax benefits in connection with share-based compensation		—			—		255			—		—			—			—			—			255
Stock options exercised		170,279			2		121			—		—			—			—			—			123
Balance at June 30, 2015		54,965,555		$	550	$	412,367		$	196,705	$	364		$	—		$	(20,723	)	$	(666	)	$	588,597

(1) Share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

See accompanying notes to consolidated financial statements.

6

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Cash flows from operating activities:
Net income	$	11,990		$	10,275
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of acquisition fair value adjustments		(47	)		(20	)
ESOP shares earned		765			514
Provision for loan losses		3,711			829
Accretion of net deferred loan origination fees		(371	)		(231	)
Net accretion of securities available for sale		(39	)		(9	)
Capitalization of mortgage servicing rights		(13	)		(20	)
Amortization of mortgage servicing rights		107			111
Depreciation and amortization expense		1,202			1,190
Gain on sales of securities, net		(2,444	)		(3,065	)
Net loss and provision for foreclosed real estate		—			79
Deferred income tax benefit		(97	)		(134	)
Income from bank-owned life insurance		(590	)		(574	)
Share-based compensation expense		288			434
Excess tax benefits in connection with share-based compensation		(255	)		(77	)
Net changes in:
Loans held for sale		(4,183	)		(3,537	)
Accrued interest receivable		(306	)		9
Other assets		1,577			(1,199	)
Accrued expenses and other liabilities		(3,046	)		(3,971	)
Net cash provided by operating activities		8,249			604
Cash flows from investing activities:
Purchases of certificates of deposit		(10,000	)		—
Activity in securities available for sale:
Proceeds from maturities, calls and principal payments		18,148			26,853
Redemption of mutual funds, net		9,931			1,019
Proceeds from sales		19,095			14,814
Purchases		(20,543	)		(19,661	)
Loans originated, net of principal payments received		(69,145	)		(106,440	)
Purchases of premises and equipment		(1,349	)		(690	)
Purchase of Federal Home Loan Bank stock		—			(774	)
Proceeds from sales of foreclosed real estate		—			540
Net cash used in investing activities		(53,863	)		(84,339	)

7

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Cash flows from financing activities:
Net increase in deposits		47,240			315,720
Proceeds from Federal Home Loan Bank advances with maturities of three months or more		—			55,000
Repayment of Federal Home Loan Bank advances with maturities of three months or more		(31,082	)		(5,563	)
Stock options exercised		123			49
Excess tax benefits in connection with share-based compensation		255			77
Net cash provided by financing activities		16,536			365,283
Net change in cash and cash equivalents		(29,078	)		281,548
Cash and cash equivalents at beginning of period		205,732			86,271
Cash and cash equivalents at end of period	$	176,654		$	367,819
Supplemental cash flow information:
Interest paid on deposits	$	9,133		$	8,825
Interest paid on borrowings		1,023			1,265
Income taxes paid, net of refunds		8,510			7,033
Non-cash investing and financing activities:
Transfers from loans to foreclosed real estate		—			1,732
Net change in amounts due to broker on security transactions		—			636

See accompanying notes to consolidated financial statements.

8

MERIDIAN BANCORP, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

Meridian Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated on March 6, 2014 to be the successor to Meridian Interstate Bancorp, Inc. (“Old Meridian”) upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Meridian Financial Services, Incorporated (the “MHC”), the top tier mutual holding company of Old Meridian. Old Meridian was the former mid-tier holding company for East Boston Savings Bank (the “Bank”). Prior to completion of the Conversion, approximately 59% of the outstanding shares of common stock of Old Meridian were owned by the MHC. In conjunction with the Conversion, the MHC and Meridian Interstate Funding Corporation were merged into Old Meridian (and ceased to exist), and Old Meridian merged into the Company and the Company became its successor under the name Meridian Bancorp, Inc. The Conversion was completed July 28, 2014. The Company raised gross proceeds of $325.0 million by selling a total of 32,500,000 shares of common stock at $10.00 per share in the second-step stock offering. The Company utilized $16.3 million of the proceeds to fund an addition to its Employee Stock Ownership Plan (“ESOP”) loan for the acquisition by the ESOP of an additional 1,625,000 shares at $10.00 per share representing 5% of the shares issued in the second-step offering and incurred expenses in connection with the offer and sale of the common stock totaling $6.5 million, resulting in net cash proceeds to the Company of $302.3 million. The Company invested $159.3 million of the net proceeds it received from the sale into the Bank’s operations and retained the remaining amount for general corporate purposes. Concurrent with the completion of the stock offering, each share of Old Meridian common stock owned by public stockholders (stockholders other than the MHC) was exchanged for 2.4484 shares of Company common stock. A total of 22,200,316 shares of Company common stock were issued in the exchange. The Conversion was accounted for as a capital raising transaction by entities under common control. The historical financial results of the MHC are immaterial to the results of the Company and therefore the net assets of the MHC have been reflected as an increase to stockholders’ equity at the time of the offering.

As a result of the Conversion, all share and per share information has been revised to reflect the 2.4484-to-one exchange ratio. Such revised financial information presented in this Form 10-Q is derived from the consolidated financial statements of Old Meridian and its subsidiaries.

The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. The Company owns the Bank. The Bank’s subsidiaries include Prospect, Inc., which engages in securities transactions on its own behalf, EBOSCO, LLC and Berkeley Riverbend Estates LLC, both of which hold foreclosed real estate, and East Boston Investment Services, Inc., which is authorized for third-party investment sales and is currently inactive. All significant intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by such generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Such adjustments were of a normal recurring nature. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the entire year or any other interim period. For additional information, refer to the financial statements and footnotes thereto of the Company included in the Company’s Form 10-K for the year ended December 31, 2014 which was filed with the Securities and Exchange Commission (“SEC”) on March 13, 2015, and is available through the SEC’s website at www.sec.gov.

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the evaluation of goodwill for impairment, other-than-temporary impairment of securities and the valuation of deferred tax assets.

9

2. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This update is intended to reduce diversity in the application of guidance by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. Amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of this ASU was to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.

3. EARNINGS PER SHARE

Basic earnings per share excludes dilution and is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Dividends on unvested stock awards are non-forfeitable, therefore these unvested stock awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. Unallocated common shares held by the ESOP are shown as a reduction in stockholders’ equity and are not included in the weighted-average number of common shares outstanding for either basic or diluted earnings per share calculations.

Basic and diluted earnings per share have been computed based on the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(Dollars in thousands, except per share amounts)
Net income available to common stockholders	$	5,585	$	5,504	$	11,990	$	10,275
Basic weighted average shares outstanding		52,074,889		53,047,448		51,969,106		53,029,783
Effect of dilutive stock options		1,091,671		1,078,317		1,116,573		1,067,997
Diluted weighted average shares outstanding		53,166,560		54,125,765		53,085,679		54,097,780
Earnings per share:
Basic	$	0.11	$	0.10	$	0.23	$	0.19
Diluted	$	0.11	$	0.10	$	0.23	$	0.19

Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one). For the three and six months ended June 30, 2015, options for the exercise of 37,789 and 39,547, respectively, were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. There were no anti-dilutive options for the three and six months ended June 30, 2014.

10

4. SECURITIES AVAILABLE FOR SALE

The amortized cost and fair values of securities available for sale, with gross unrealized gains and losses, follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds:
Financial services	$	28,388	$	236	$	(27	)	$	28,597
Industry and manufacturing		3,996		47		—			4,043
Other		1,001		5		—			1,006
Total corporate bonds		33,385		288		(27	)		33,646
Government-sponsored enterprises		26,043		7		(110	)		25,940
U.S. treasury securities		24,994		22		—			25,016
Municipal bonds		5,228		130		—			5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		7,924		530		(2	)		8,452
Private label		1,290		51		—			1,341
Total debt securities		98,864		1,028		(139	)		99,753
Marketable equity securities:
Common stocks:
Financial services		10,983		740		(162	)		11,561
Industry and manufacturing		20,326		653		(2,579	)		18,400
Consumer products and services		17,815		596		(743	)		17,668
Technology		4,329		91		(332	)		4,088
Healthcare		6,871		1,011		(10	)		7,872
Other		3,441		1,301		(3	)		4,739
Total common stocks		63,765		4,392		(3,829	)		64,328
Money market mutual funds		11,130		—		(40	)		11,090
Total marketable equity securities		74,895		4,392		(3,869	)		75,418
Total securities available for sale	$	173,759	$	5,420	$	(4,008	)	$	175,171
December 31, 2014
Debt securities:
Corporate bonds:
Financial services	$	37,852	$	533	$	(38	)	$	38,347
Industry and manufacturing		5,935		121		—			6,056
Healthcare		4,001		27		—			4,028
Other		1,005		19		—			1,024
Total corporate bonds		48,793		700		(38	)		49,455
Government-sponsored enterprises		34,548		9		(357	)		34,200
U.S. treasury securities		24,991		—		(54	)		24,937
Municipal bonds		5,441		182		—			5,623
Residential mortgage-backed securities:
Government-sponsored enterprises		8,754		589		(3	)		9,340
Private label		1,410		86		—			1,496
Total debt securities		123,937		1,566		(452	)		125,051
Marketable equity securities:
Common stocks:
Financial services		10,849		1,225		(51	)		12,023
Industry and manufacturing		16,894		822		(1,658	)		16,058
Consumer products and services		13,992		1,467		(549	)		14,910
Technology		2,521		79		(184	)		2,416
Healthcare		5,220		1,551		—			6,771
Other		3,441		1,826		—			5,267
Total common stocks		52,917		6,970		(2,442	)		57,445
Money market mutual funds		21,060		—		(35	)		21,025
Total marketable equity securities		73,977		6,970		(2,477	)		78,470
Total securities available for sale	$	197,914	$	8,536	$	(2,929	)	$	203,521

11

At June 30, 2015, securities with an amortized cost of $17.5 million and $1.1 million, respectively, were pledged as collateral for Federal Home Loan Bank of Boston borrowings and Federal Reserve Bank discount window borrowings.

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2015 are as follows. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

					After One Year
	One Year or Less				Through Five Years				After Five Years				Total
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
	(In thousands)
Corporate bonds:
Financial services	$	10,989	$	11,083	$	17,399	$	17,514	$	—	$	—	$	28,388	$	28,597
Industry and manufacturing		2,996		3,028		1,000		1,015		—		—		3,996		4,043
Other		1,001		1,006		—		—		—		—		1,001		1,006
Total corporate bonds		14,986		15,117		18,399		18,529		—		—		33,385		33,646
Government-sponsored enterprises		43		43		22,000		21,951		4,000		3,946		26,043		25,940
U.S. treasury securities		—		—		24,994		25,016		—		—		24,994		25,016
Municipal bonds		801		808		4,427		4,550		—		—		5,228		5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		—		—		7,924		8,452		7,924		8,452
Private label		—		—		—		—		1,290		1,341		1,290		1,341
Total	$	15,830	$	15,968	$	69,820	$	70,046	$	13,214	$	13,739	$	98,864	$	99,753

For the three months ended June 30, 2015 and 2014, proceeds from sales of securities available for sale amounted to $14.4 million and $7.2 million, respectively. Gross gains of $1.6 million and $1.5 million and gross losses of $158,000 and $0, respectively, were realized on those sales. For the six months ended June 30, 2015 and 2014, proceeds from sales of securities available for sale amounted to $19.1 million and $14.8 million, respectively. Gross gains of $2.8 million and $3.1 million and gross losses of $323,000 and $0, respectively, were realized on those sales.

Information pertaining to securities available for sale as of June 30, 2015 and December 31, 2014, with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds - financial services	$	2	$	1,998	$	25	$	1,476
Government-sponsored enterprises		19		7,981		91		8,910
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		2		220
Total debt securities		21		9,979		118		10,606
Marketable equity securities:
Common stocks:
Financial services		162		2,535		—		—
Industry and manufacturing		2,579		12,299		—		—
Consumer products and services		423		7,448		320		1,816
Technology		332		2,160		—		—
Healthcare		10		818		—		—
Other		3		464		—		—
Total common stocks		3,509		25,724		320		1,816
Money market mutual funds		—		—		40		1,020
Total marketable equity securities		3,509		25,724		360		2,836
Total temporarily impaired securities	$	3,530	$	35,703	$	478	$	13,442

12

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
December 31, 2014
Debt securities:
Corporate bonds-financial services	$	5	$	1,994	$	33	$	1,467
Government-sponsored enterprises		10		4,491		347		24,653
U.S. treasury securities		54		24,937		—		—
Residential mortgage-backed securities:
Government-sponsored enterprises		3		225		—		—
Total debt securities		72		31,647		380		26,120
Marketable equity securities:
Common stocks:
Financial services		51		1,855		—		—
Industry and manufacturing		1,658		8,046		—		—
Consumer products and services		549		3,864		—		—
Technology		184		1,855		—		—
Total common stocks		2,442		15,620		—		—
Money market mutual funds		—		—		35		1,018
Total marketable equity securities		2,442		15,620		35		1,018
Total temporarily impaired securities	$	2,514	$	47,267	$	415	$	27,138

The Company determined no securities were other-than-temporarily impaired for the six months ended June 30, 2015 or 2014. Management evaluates securities for other-than-temporary impairment on a quarterly basis, with more frequent evaluation for selected issuers or when economic or market concerns warrant such evaluations.

As of June 30, 2015, the net unrealized gain on the total debt securities portfolio was $889,000. At June 30, 2015, 19 debt securities had unrealized losses with aggregate depreciation of 0.7% from the Company’s amortized cost basis. In analyzing a debt issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, industry analysts’ reports and, to a lesser extent given the relatively insignificant levels of depreciation in the Company’s debt portfolio, spread differentials between the effective rates on instruments in the portfolio compared to risk-free rates. The unrealized losses are primarily caused by a recent increase in interest rates. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment. Because (1) the Company does not intend to sell the securities; (2) the Company does not believe it is more likely than not that the Company will be required to sell the securities before recovery of its amortized cost basis; and (3) the present value of expected cash flows is sufficient to recover the entire amortized cost basis of the securities, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2015.

As of June 30, 2015, the net unrealized gain on the total marketable equity securities portfolio was $523,000. At June 30, 2015, 54 marketable equity securities have unrealized losses with aggregate depreciation of 11.9% from the Company’s cost basis. Although some issuers have shown declines in earnings, no issues have been identified that cause management to believe the decline in market value is other than temporary, and the Company has the ability and intent to hold these investments until a recovery of fair value. In analyzing an equity issuer’s financial condition, management considers industry analysts’ reports, financial performance and projected target prices of investment analysts within a one-year time frame. A decline of 10% or more in the value of an acquired equity security is generally the triggering event for management to review individual securities for liquidation and/or classification as other-than-temporarily impaired. Impairment losses are recognized when management concludes that declines in the value of equity securities are other than temporary, or when they can no longer assert that they have the intent and ability to hold depreciated equity securities for a period of time sufficient to allow for any anticipated recovery in fair value. Unrealized losses on marketable equity securities that are in excess of 25% of cost and that have been sustained for more than twelve months are generally considered-other-than temporary and charged to earnings as impairment losses, or realized through sale of the security.

13

5. LOANS

The Company’s loan portfolio consists primarily of residential real estate, commercial real estate, construction, commercial and industrial, and consumer segments. The residential real estate loans include classes for one- to four-family, multi-family and home equity lines of credit. There are no foreign loans outstanding. Interest rates charged on loans are affected principally by the demand for such loans, the supply of money available for lending purposes and the rates offered by our competitors. A summary of loans follows:

	June 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	462,897			16.8	%	$	468,560			17.5	%
Multi-family		401,584			14.6			409,675			15.3
Home equity lines of credit		48,274			1.8			50,091			1.9
Commercial real estate		1,134,686			41.3			1,145,820			42.8
Construction		335,939			12.2			265,980			9.9
Total real estate loans		2,383,380			86.7			2,340,126			87.4
Commercial and industrial		354,696			12.9			330,813			12.3
Consumer		9,564			0.4			8,772			0.3
Total loans		2,747,640			100.0	%		2,679,711			100.0	%
Allowance for loan losses		(30,109	)					(28,469	)
Net deferred loan origination fees		(2,815	)					(2,335	)
Loans, net	$	2,714,716					$	2,648,907

The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At June 30, 2015 and December 31, 2014, the Company was servicing loans for participants aggregating $112.1 million and $88.1 million, respectively.

As a result of the Mt. Washington Bank acquisition in January 2010, the Company acquired loans at fair value of $345.3 million. Included in this amount was $27.7 million of loans with evidence of deterioration of credit quality since origination for which it was probable, at the time of the acquisition, that the Company would be unable to collect all contractually required payments receivable. The Company’s evaluation of loans with evidence of credit deterioration as of the acquisition date resulted in a nonaccretable discount of $7.6 million, which is defined as the loan’s contractually required payments receivable in excess of the amount of its cash flows expected to be collected. The Company considered factors such as payment history, collateral values, and accrual status when determining whether there was evidence of deterioration of the loan’s credit quality at the acquisition date.

The following is a summary of the outstanding balance of the acquired loans with evidence of credit deterioration:

	June 30,			December 31,
	2015			2014
	(In thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	5,479		$	5,776
Multi-family		608			625
Home equity lines of credit		426			505
Commercial real estate		369			447
Outstanding principal balance		6,882			7,353
Discount		(1,552	)		(1,787	)
Carrying amount	$	5,330		$	5,566

14

A rollforward of the accretable discount, included with the outstanding loan balances, follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Beginning balance	$	776		$	1,170		$	919		$	1,181
Accretion		(14	)		(16	)		(28	)		(27	)
Disposals		(78	)		—			(207	)		—
Ending balance	$	684		$	1,154		$	684		$	1,154

An analysis of the allowance for loan losses and related information follows:

	For the Three Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,663		$	3,608		$	95		$	12,942		$	5,356		$	4,853		$	84		$	28,601
Provision (credit) for loan losses		(139	)		(86	)		57			(144	)		3,576			331			56			3,651
Charge-offs		(7	)		—			—			—			(2,287	)		—			(57	)		(2,351	)
Recoveries		—			—			—			18			166			1			23			208
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Three Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,960		$	3,276		$	105		$	11,924		$	4,149		$	3,928		$	98		$	25,440
Provision (credit) for loan losses		(52	)		70			5			57			353			254			9			696
Charge-offs		—			—			(5	)		—			—			—			(36	)		(41	)
Recoveries		5			—			—			—			10			3			18			36
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131
	For the Six Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,849		$	3,635		$	100		$	13,000		$	5,155		$	4,633		$	97		$	28,469
Provision (credit) for loan losses		(180	)		(113	)		52			(202	)		3,485			584			85			3,711
Charge-offs		(160	)		—			—			—			(2,287	)		(33	)		(118	)		(2,598	)
Recoveries		8			—			—			18			458			1			42			527
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Six Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,991		$	2,419		$	155		$	12,831		$	4,374		$	3,433		$	132		$	25,335
Provision (credit) for loan losses		(68	)		927			(45	)		(838	)		117			746			(10	)		829
Charge-offs		(54	)		—			(5	)		(12	)		—			—			(86	)		(157	)
Recoveries		44			—			—			—			21			6			53			124
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131

15

	One- to four-family		Multi- family		Home of equity lines credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
June 30, 2015
Amount of allowance for loan losses for loans deemed to be impaired	$	3	$	164	$	—	$	28	$	—	$	3	$	—	$	198
Amount of allowance for loan losses for loans not deemed to be impaired		1,514		3,358		152		12,788		6,811		5,182		106		29,911
	$	1,517	$	3,522	$	152	$	12,816	$	6,811	$	5,185	$	106	$	30,109
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans deemed to be impaired	$	2,071	$	1,422	$	—	$	5,403	$	19,174	$	996	$	—	$	29,066
Loans not deemed to be impaired		460,826		400,162		48,274		1,129,283		316,765		353,700		9,564		2,718,574
	$	462,897	$	401,584	$	48,274	$	1,134,686	$	335,939	$	354,696	$	9,564	$	2,747,640
	One- to four-family		Multi- family		Home equity lines of credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
December 31, 2014
Amount of allowance for loan losses for loans deemed to be impaired	$	76	$	168	$	—	$	—	$	32	$	14	$	—	$	290
Amount of allowance for loan losses for loans not deemed to be impaired		1,773		3,467		100		13,000		5,123		4,619		97		28,179
	$	1,849	$	3,635	$	100	$	13,000	$	5,155	$	4,633	$	97	$	28,469
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Loans deemed to be impaired	$	4,415	$	1,443	$	20	$	15,398	$	9,818	$	984	$	—	$	32,078
Loans not deemed to be impaired		464,145		408,232		50,071		1,130,422		256,162		329,829		8,772		2,647,633
	$	468,560	$	409,675	$	50,091	$	1,145,820	$	265,980	$	330,813	$	8,772	$	2,679,711

The following table provides information about the Company’s past due and non-accrual loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
June 30, 2015
Real estate loans:
Residential real estate:
One- to four-family	$	2,616	$	780	$	1,834	$	5,230	$	11,094
Home equity lines of credit		956		49		658		1,663		1,930
Commercial real estate		—		—		4,988		4,988		5,271
Construction		—		—		16,606		16,606		17,775
Total real estate loans		3,572		829		24,086		28,487		36,070
Commercial and industrial		544		—		892		1,436		892
Consumer		476		406		—		882		—
Total	$	4,592	$	1,235	$	24,978	$	30,805	$	36,962

16

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
December 31, 2014
Real estate loans:
Residential real estate:
One- to four-family	$	4,386	$	1,129	$	3,056	$	8,571	$	14,649
Home equity lines of credit		1,040		75		753		1,868		2,277
Commercial real estate		—		1,739		3,038		4,777		5,311
Construction		—		—		7,350		7,350		8,417
Total real estate loans		5,426		2,943		14,197		22,566		30,654
Commercial and industrial		5		99		833		937		855
Consumer		521		527		—		1,048		—
Total	$	5,952	$	3,569	$	15,030	$	24,551	$	31,509

At June 30, 2015 and December 31, 2014, the Company did not have any accruing loans past due 90 days or more. Delinquent loans at June 30, 2015 and December 31, 2014 included $972,000 and $485,000 of loans acquired with evidence of credit deterioration. At June 30, 2015 and December 31, 2014, non-accrual loans included $290,000 and $994,000 of loans acquired with evidence of credit deterioration.

The following tables provide information with respect to the Company’s impaired loans:

	June 30, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
Impaired loans without a valuation allowance:
One- to four-family	$	1,802	$	2,223			$	2,986	$	3,515
Multi-family		95		95				102		102
Home equity lines of credit		—		—				20		20
Commercial real estate		4,646		4,941				15,398		15,705
Construction		19,174		22,211				9,328		10,007
Commercial and industrial		988		1,320				936		1,320
Total		26,705		30,790				28,770		30,669
Impaired loans with a valuation allowance:
One- to four-family		269		269	$	3		1,429		1,429	$	76
Multi-family		1,327		1,327		164		1,341		1,341		168
Commercial real estate		757		757		28		—		—		—
Construction		—		—		—		490		490		32
Commercial and industrial		8		8		3		48		48		14
Total		2,361		2,361		198		3,308		3,308		290
Total impaired loans	$	29,066	$	33,151	$	198	$	32,078	$	33,977	$	290

At June 30, 2015, additional funds of $29,000 are committed to be advanced in connection with impaired construction loans.

17

	Three Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	2,282	$	35	$	34	$	4,033	$	50	$	55
Multi-family		1,426		14		14		5,319		77		53
Home equity lines of credit		—		—		—		20		—		—
Commercial real estate		5,558		33		33		9,546		126		77
Construction		22,304		60		60		13,876		235		69
Commercial and industrial		996		2		2		1,051		20		3
Total impaired loans	$	32,566	$	144	$	143	$	33,845	$	508	$	257

	Six Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	3,309	$	85	$	84	$	4,048	$	100	$	95
Multi-family		1,431		27		27		5,338		155		156
Home equity lines of credit		—		—		—		21		—		—
Commercial real estate		10,702		146		146		9,593		267		135
Construction		15,321		256		254		13,673		469		123
Commercial and industrial		973		5		5		1,060		39		8
Total impaired loans	$	31,736	$	519	$	516	$	33,733	$	1,030	$	517

The following table summarizes the troubled debt restructurings (“TDRs”) at the dates indicated:

	June 30,		December 31,
	2015		2014
	(In thousands)
TDRs on accrual status:
One- to four-family	$	2,906	$	2,946
Multi-family		1,422		1,443
Home equity lines of credit		19		20
Commercial real estate		10,111		9,950
Construction		174		121
Commercial and industrial		142		—
Total TDRs on accrual status		14,774		14,480
TDRs on non-accrual status:
One- to four-family		1,347		1,469
Commercial real estate		450		283
Construction		2,301		6,496
Commercial and industrial		267		186
Total TDRs on non-accrual status		4,365		8,434
Total TDRs	$	19,139	$	22,914

For the six months ended June 30, 2015 and 2014, new TDRs were immaterial and there were no TDRs that defaulted within the 12 months of restructure. The Company generally places loans modified as TDRs on non-accrual status for a minimum period of six months. Loans modified as TDRs qualify for return to accrual status once they have demonstrated performance with the modified terms of the loan agreement for a minimum of six consecutive months and future payments are reasonably assured. TDRs are reported as impaired loans with an allowance established as part of the allocated component of the allowance for loan losses when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. TDRs may be removed from impairment disclosures in the year following the restructure if the borrower demonstrates compliance with the modified terms and the restructuring agreement specifies an interest rate equal to that which would be provided to a borrower with similar credit at the time of restructuring.

18

The Company utilizes a nine-grade internal loan rating system for multi-family, commercial real estate, construction, and commercial and industrial loans as follows:

• Loans rated 1, 2, 3 and 3A: Loans in these categories are considered “pass” rated loans with low to average risk.

• Loans rated 4 and 4A: Loans in these categories are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

• Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

• Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

• Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as assets is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all multi-family, commercial real estate, construction, and commercial and industrial loans. The Company also engages an independent third-party to review a significant portion of loans within these segments on at least an annual basis. Management uses the results of these reviews as part of its annual review process.

The following tables provide information with respect to the Company’s risk rating:

	June 30, 2015								December 31, 2014
	Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial		Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial
	(In thousands)
Loans rated 1 - 3A	$	390,867	$	1,123,746	$	314,956	$	328,916	$	399,113	$	1,135,540	$	238,505	$	322,013
Loans rated 4 - 4A		2,225		5,255		—		24,747		1,960		4,832		—		7,816
Loans rated 5		8,492		5,685		20,983		1,033		8,602		5,448		27,475		984
Loans rated 6		—		—		—		—		—		—		—		—
Loans rated 7		—		—		—		—		—		—		—		—
Total	$	401,584	$	1,134,686	$	335,939	$	354,696	$	409,675	$	1,145,820	$	265,980	$	330,813

For one- to four-family real estate loans, home equity lines of credit and consumer loans, management uses delinquency reports as the key credit quality indicator.

6. DEPOSITS

A summary of deposit balances, by type, follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Demand deposits	$	351,236	$	285,990
NOW deposits		294,989		294,840
Money market deposits		907,933		942,542
Regular savings and other deposits		286,311		272,611
Total non-certificate accounts		1,840,469		1,795,983
Term certificates less than $100,000		298,272		280,393
Term certificates $100,000 and greater		412,425		427,559
Total term certificates		710,697		707,952
Total deposits	$	2,551,166	$	2,503,935

19

A summary of term certificates, by maturity, follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Within 1 year	$	463,515		1.04	%	$	493,676		1.05	%
Over 1 year to 2 years		161,177		1.24			131,099		1.31
Over 2 years to 3 years		41,340		1.16			42,237		1.39
Over 3 years to 4 years		22,931		1.45			18,202		1.47
Over 4 years to 5 years		18,462		1.48			19,539		1.50
Greater than 5 years		3,272		5.50			3,199		5.50
	$	710,697		1.13	%	$	707,952		1.16	%

7. BORROWINGS

Long-term debt consists of FHLB advances as follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
2015	$	10,000		1.83	%	$	39,500		1.20	%
2016		41,500		1.20			41,500		1.20
2017		74,632		1.38			74,632		1.38
2018		—		—			—		—
2019		7,571		1.23			8,454		1.23
2020		7,114		1.22			7,813		1.22
	$	140,817		1.34	%	$	171,899		1.28	%

At June 30, 2015, advances amounting to $6.5 million are callable by the FHLB prior to maturity.

As of June 30, 2015, the Company also has an available line of credit of $9.4 million with the FHLB at an interest rate that adjusts daily. No amounts were drawn on the line of credit as of June 30, 2015 or December 31, 2014. All borrowings from the FHLB are secured by investment securities (see Note 4) and qualified collateral, consisting of a blanket lien on one- to four-family loans and certain multi-family and commercial real estate loans held in the Bank’s portfolio. At June 30, 2015, the Company pledged multi-family and commercial real estate loans with carrying values totaling $60.4 million and $184.0 million, respectively.

8. COMMITMENTS AND DERIVATIVES

In the normal course of business, there are outstanding commitments which are not reflected in the accompanying consolidated financial statements.

Loan Commitments

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

20

A summary of outstanding financial instruments whose contract amounts represent credit risk is as follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Unadvanced portion of existing loans:
Construction	$	405,472	$	315,206
Home equity line of credit		33,358		32,861
Other lines and letters of credit		120,585		119,352
Commitments to originate:
One- to four-family		14,599		20,641
Commercial real estate		186,079		46,260
Construction		180,128		116,215
Commercial and industrial		41,335		19,013
Other loans		1,343		785
Total loan commitments outstanding	$	982,899	$	670,333

Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments are expected to expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case by case basis. The amount of collateral obtained, if deemed necessary by the Company for the extension of credit, is based upon management’s credit evaluation of the borrower. Collateral held includes, but is not limited to, residential real estate and deposit accounts.

Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized if deemed necessary and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Interest Rate Swaps

The Company is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that the Company enters into with commercial business customers to synthetically convert their loans from a variable rate to a fixed rate. The Company pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. Concurrently, the Company enters into an offsetting interest rate swap with a third-party financial institution. In the offsetting swap, the Company pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss of given default for all counterparties. At June 30, 2015 and December 31, 2014, the Company had $1.4 million and $950,000, respectively, in cash pledged for collateral on its interest rate swap with the third-party financial institution.

Summary information regarding these derivatives is presented below:

				June 30, 2015					December 31, 2014
	Maturity	Interest Rate Paid	Interest Rate Received	Notional Amount		Fair Value			Notional Amount		Fair Value
		(Dollars in thousands)
Customer interest rate swap	10/17/33	1 Mo. Libor + 175bp	Fixed (4.1052%)	$	11,175	$	780		$	11,245	$	932
Third-party interest rate swap	10/17/33	Fixed (4.1052%)	1 Mo. Libor + 175bp		11,175		(780	)		11,245		(932	)

21

Derivative Loan Commitments

Residential real estate loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential real estate loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. A residential loan commitment requires the Company to originate a loan at a specific interest rate upon the completion of various underwriting requirements. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from the exercise of the loan commitment might decline from the inception of the rate lock to funding of the loan due to increases in loan interest rates. If interest rates increase, the value of these commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. Derivative loan commitments with a notional amount of $11.5 million and $12.2 million were outstanding at June 30, 2015 and December 31, 2014, respectively. The fair value of such commitments was a net asset of $37,000 and $123,000 at June 30, 2015 and December 31, 2014, respectively.

Forward Loan Sale Commitments

To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Under a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay the investor a “pair-off” fee, based on then-current market prices, to compensate the investor for the shortfall. Under a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor and the investor commits to a price that it will purchase the loan from the Company if the loan to the underlying borrower closes. The Company generally enters into forward sale contracts on the same day it commits to lend funds to a potential borrower. The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Forward loan sale commitments with a notional amount of $16.5 million and $12.2 million were outstanding at June 30, 2015 and December 31, 2014, respectively. The fair value of such commitments was a net asset of $228,000 at June 30, 2015 and a net liability of $22,000 at December 31, 2014.

The following table presents the fair values of derivative instruments in the consolidated balance sheets.

	Assets			Liabilities
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
June 30, 2015
Derivative loan commitments	Other assets	$	124	Other liabilities	$	87
Forward loan sale commitments	Other assets		247	Other liabilities		19
Loan level interest rate swaps	Other assets		780	Other liabilities		780
Total		$	1,151		$	886
December 31, 2014
Derivative loan commitments	Other assets	$	159	Other liabilities	$	36
Forward loan sale commitments	Other assets		11	Other liabilities		33
Loan level interest rate swaps	Other assets		932	Other liabilities		932
Total		$	1,102		$	1,001

The following table presents information pertaining to gains (losses) on the Company’s derivative instruments included in the consolidated statements of net income.

		Three Months Ended June 30,						Six Months Ended June 30,
Derivative Instrument	Location of Gain (Loss)	2015			2014			2015			2014
					(In thousands)
Derivative loan commitments	Mortgage banking gains, net	$	(35	)	$	103		$	(86	)	$	141
Forward loan sale commitments	Mortgage banking gains, net		204			(73	)		250			(109	)
Total		$	169		$	30		$	164		$	32

22

For the three months ended June 30, 2015, the Company recognized net mortgage banking gains of $268,000, consisting of $99,000 in net gains on sale of loans and $169,000 in net derivative mortgage banking gains. The Company recognized net mortgage banking gains of $267,000, consisting of $237,000 in net gains on sale of loans and $30,000 in net derivative mortgage banking gains for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company recognized net mortgage banking gains of $378,000, consisting of $214,000 in net gains on sale of loans and $164,000 in net derivative mortgage banking gains. The company recognized net mortgage banking gains of $387,000, consisting of $355,000 in net gains on sale of loans and $32,000 in net derivative mortgage banking gains for the six months ended June 30, 2014.

Other Commitments

The Company has a contract with its core data processing provider through December 2017 with an outstanding commitment of $5.6 million as of June 30, 2015, with total annual payments of $2.2 million.

9. FAIR VALUES OF ASSETS AND LIABILITIES

Determination of Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of assets and liabilities is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

Cash and cash equivalents — The carrying amounts of cash and short-term instruments approximate fair values, based on the short-term nature of the assets.

Certificates of deposit — Fair values of certificates of deposit are estimated using discounted cash flow analyses based on current market rates for similar types of deposits.

Securities available for sale — All fair value measurements are obtained from a third party pricing service and are not adjusted by management. Marketable equity securities are measured at fair value utilizing quoted market prices (Level 1). Corporate bonds, obligations of government-sponsored enterprises, U.S. treasury securities, municipal bonds and mortgage-backed securities are determined by pricing models that consider standard input factors such as observable market data, benchmark yields, reported trades, broker/dealer quotes, credit spreads, benchmark securities, as well as new issue data, monthly payment information, and collateral performance, among others (Level 2).

Federal Home Loan Bank stock — The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank.

Loans held for sale — The fair value is based on commitments in effect from investors or prevailing market prices.

Loans — For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-accrual loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

Deposits — The fair values disclosed for non-certificate accounts are, by definition, equal to the amount payable on demand at the reporting date which is their carrying amounts. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Borrowings — The fair value is estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Accrued interest — The carrying amounts of accrued interest approximate fair value.

Forward loan sale commitments and derivative loan commitments — Forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Derivative loan commitments also include the fair values of respective servicing rights. Management judgment and estimation is required in determining these fair value measurements.

Loan level interest rate swaps — The fair value is based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves.

Off-balance sheet credit-related instruments — Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these instruments is considered immaterial.

23

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Level 1		Level 2		Level 3		Total Fair Value
	(In thousands)
June 30, 2015
Assets:
Debt securities	$	—	$	99,753	$	—	$	99,753
Marketable equity securities		75,418		—		—		75,418
Derivative loan commitments		—		—		124		124
Forward loan sale commitments		—		—		247		247
Loan level interest rate swaps		—		—		780		780
Total assets	$	75,418	$	99,753	$	1,151	$	176,322
Liabilities:
Derivative loan commitments	$	—	$	—	$	87	$	87
Forward loan sale commitments		—		—		19		19
Loan level interest rate swaps		—		—		780		780
Total liabilities	$	—	$	—	$	886	$	886
December 31, 2014
Assets:
Debt securities	$	—	$	125,051	$	—	$	125,051
Marketable equity securities		78,470		—		—		78,470
Derivative loan commitments		—		—		159		159
Forward loan sale commitments		—		—		11		11
Loan level interest rate swaps		—		—		932		932
Total assets	$	78,470	$	125,051	$	1,102	$	204,623
Liabilities:
Derivative loan commitments	$	—	$	—	$	36	$	36
Forward loan sale commitments		—		—		33		33
Loan level interest rate swaps		—		—		932		932
Total liabilities	$	—	$	—	$	1,001	$	1,001

For the six months ended June 30, 2015 and 2014, there were no transfers in or out of Levels 1 and 2 and the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Derivative loan commitments and forward sale commitments, net:
Beginning balance	$	96	$	90	$	101	$	88
Total realized and unrealized losses included in net income		169		30		164		32
Ending balance	$	265	$	120	$	265	$	120
Total realized gain relating to instruments still held at period end	$	265	$	120	$	265	$	120

Assets Measured at Fair Value on a Non-recurring Basis

The Company may also be required, from time to time, to measure certain other assets on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or market accounting or write-downs of individual assets.

24

The following tables summarize the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. The gain/loss represents the amount of write-down, charge-off or specific reserve recorded during the periods noted on the assets held at period end. There were no liabilities measured at fair value on a non-recurring basis.

	June 30, 2015						Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	24,937	$	(2,287	)	$	(2,287	)
Foreclosed real estate		—		—		1,046		—			—
	$	—	$	—	$	25,983	$	(2,287	)	$	(2,287	)
							Three Months Ended			Six Months Ended
	December 31, 2014						June 30, 2014			June 30, 2014
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	13,664	$	14		$	(43	)
Foreclosed real estate		—		—		1,046		(80	)		(80	)
	$	—	$	—	$	14,710	$	(66	)	$	(123	)

Certain impaired loans were adjusted to fair value, less cost to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.

Certain properties in foreclosed real estate were adjusted to fair value using appraised values of collateral, less cost to sell, and adjusted as necessary by management based on unobservable inputs for specific properties. The loss on foreclosed assets represents adjustments in valuation recorded during the time period indicated and not for losses incurred on sales.

Summary of Fair Values of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
June 30, 2015
Financial assets:
Cash and due from banks	$	176,654	$	176,654	$	—	$	—	$	176,654
Certificates of deposit		95,000		—		95,182		—		95,182
Securities available for sale		175,171		75,418		99,753		—		175,171
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,719,870		—		—		2,730,834		2,730,834
Accrued interest receivable		8,054		—		—		8,054		8,054
Financial liabilities:
Deposits		2,551,166		—		—		2,502,665		2,502,665
Borrowings		140,817		—		141,761		—		141,761
Accrued interest payable		771		—		—		771		771
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		124		—		—		124		124
Forward loan sale commitments		247		—		—		247		247
Loan level interest rate swaps		780		—		—		780		780
Liabilities:
Derivative loan commitments		87		—		—		87		87
Forward loan sale commitments		19		—		—		19		19
Loan level interest rate swaps		780		—		—		780		780

25

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets:
Cash and due from banks	$	205,732	$	205,732	$	—	$	—	$	205,732
Certificates of deposit		85,000		—		85,096		—		85,096
Securities available for sale		203,521		78,470		125,051		—		203,521
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,649,878		—		—		2,666,049		2,666,049
Accrued interest receivable		7,748		—		—		7,748		7,748
Financial liabilities:
Deposits		2,503,935		—		—		2,507,982		2,507,982
Borrowings		171,899		—		172,074		—		172,074
Accrued interest payable		891		—		—		891		891
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		159		—		—		159		159
Forward loan sale commitments		11		—		—		11		11
Loan level interest rate swaps		932		—		—		932		932
Liabilities:
Derivative loan commitments		36		—		—		36		36
Forward loan sale commitments		33		—		—		33		33
Loan level interest rate swaps		932		—		—		932		932

26

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis reflects our consolidated financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations. You should read the information in this section in conjunction with our business and financial information and the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission.

Forward Looking Statements

This report contains forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and words of similar meaning. The Company’s ability to predict results or actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to:

• general economic conditions, either nationally or in our market areas, that are worse than expected;

• inflation and changes in the interest rate environment that reduce our margins and yields, our mortgage banking revenues or reduce the fair value of financial instruments or reduce the origination levels in our lending business, or increase the level of defaults, losses and prepayments on loans we have made and make whether held in portfolio or sold in the secondary markets;

• competition among depository and other financial institutions;

• changes in consumer spending, borrowing and savings habits;

• our ability to enter new markets successfully and capitalize on growth opportunities;

• changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements, including as a result of Basel III;

• changes in the financial condition, results of operations or future prospects of issuers of securities that we own;

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board or the Securities and Exchange Commission;

• inability of third-party providers to perform their obligation to us; and

• changes in our organization, compensation and benefit plans.

Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets and changes in the quality or composition of the Company’s loan or investment portfolios. Additional factors that may affect our results are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission on March 13, 2015, under “Risk Factors,” which is available through the SEC’s website at www.sec.gov, as updated by subsequent filings with the SEC. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Except required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies

A summary of significant accounting policies is described in Note 1 to the Consolidated Financial Statements included in the 2014 Annual Report on Form 10-K for the year ended December 31, 2014. Critical accounting estimates are necessary in the application of certain accounting policies and procedures and are particularly susceptible to significant change. Critical accounting policies are defined as those involving significant judgments and assumptions by management that could have a material impact on the carrying value of certain assets or on income under different assumptions or conditions. Management believes that the most critical accounting policies are the allowance for loan losses, the evaluation of goodwill for impairment, other-than-temporary impairment of securities and the valuation of deferred tax assets.

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Comparison of Financial Condition at June 30, 2015 and December 31, 2014

Assets. Total assets increased $23.7 million, or 0.7%, to $3.302 billion at June 30, 2015 from $3.279 billion at December 31, 2014. Net loans increased $65.8 million, or 2.5%, to $2.715 billion at June 30, 2015 from $2.649 billion at December 31, 2014. Cash and due from banks decreased $29.1 million, or 14.1%, to $176.7 million at June 30, 2015 from $205.7 million at December 31, 2014. Securities available for sale decreased $28.4 million, or 13.9%, to $175.2 million at June 30, 2015 from $203.5 million at December 31, 2014.

Loan Portfolio Analysis. At June 30, 2015, net loans were $2.715 billion, or 82.2% of total assets. During the six months ended June 30, 2015, net loans increased $65.8 million, or 2.5%. The increase was primarily due to increases of $70.0 million in construction loans and $23.9 million in commercial and industrial loans, partially offset by decreases of $11.1 million in commercial real estate loans, $8.1 million in multi-family loans and $5.7 million in one- to four-family loans. Refer to Note 5 Loans in the Notes to the Unaudited Consolidated Financial Statements within this report for more detail regarding the loans held in the Company’s loan portfolio.

Credit Risk Management. Our strategy for credit risk management focuses on having well-defined credit policies and uniform underwriting criteria and providing prompt attention to potential problem loans. Management of asset quality is accomplished by internal controls, monitoring and reporting of key risk indicators, and both internal and independent third-party loan reviews. The primary objective of our loan review process is to measure borrower performance and assess risk for the purpose of identifying loan weakness in order to minimize loan loss exposure. From the time of loan origination through final repayment, multi-family, commercial real estate, construction, and commercial and industrial loans are assigned a risk rating based on pre-determined criteria and levels of risk. The risk rating is monitored annually for most loans; however, it may change during the life of the loan as appropriate.

Internal and independent third-party loan reviews vary by loan type, as well as the nature and complexity of the loan. Depending on the size and complexity of the loan, some loans may warrant detailed individual review, while other loans may have less risk based upon size, or be of a homogeneous nature reducing the need for detailed individual analysis. Assets with these characteristics, such as consumer loans and loans secured by residential real estate, may be reviewed on the basis of risk indicators such as delinquency or credit rating. In cases of significant concern, a total re-evaluation of the loan and associated risks are documented by completing a loan risk assessment and action plan. Some loans may be re-evaluated in terms of their fair market value or net realizable value in order to determine the likelihood of potential loss exposure and, consequently, the adequacy of specific and general loan loss reserves.

When a borrower fails to make a required loan payment, we take a number of steps to have the borrower cure the delinquency and restore the loan to current status, including contacting the borrower by letter and phone at regular intervals. When the borrower is in default, we may commence collection proceedings. If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure sale, the real property securing the loan generally is sold at foreclosure. Management informs the Executive Committee monthly of the amount of loans delinquent more than 30 days. Management provides detailed information to the Board of Directors on loans 60 or more days past due and all loans in foreclosure and repossessed property that we own.

Delinquencies. Total past due loans increased $6.3 million, or 25.5%, to $30.8 million at June 30, 2015 from $24.6 million at December 31, 2014, reflecting an increase of $9.9 million in loans 90 days or greater past due, partially offset by a decrease of $3.7 million in loans 30 to 89 days past due. The increase in loans 90 days or more past due was primarily due to a $14.0 million construction loan placed on non-accrual status as reduced by a $2.3 million charge-off during the second quarter of 2015. At June 30, 2015, non-accrual loans exceeded loans 90 days or greater past due primarily due to loans which were placed on non-accrual status based on a determination that the ultimate collection of all principal and interest due was not expected and certain loans that remain on non-accrual status until they attain a sustained payment history of six consecutive months.

Non-performing Assets. Non-performing assets include loans that are 90 or more days past due or on non-accrual status, including troubled debt restructurings (“TDRs”) on non-accrual status, and real estate and other loan collateral acquired through foreclosure and repossession. Loans 90 days or greater past due may remain on an accrual basis if adequately collateralized and in the process of collection. At June 30, 2015, we did not have any accruing loans past due 90 days or greater. For non-accrual loans, interest previously accrued but not collected is reversed and charged against income at the time a loan is placed on non-accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Real estate that we acquire as a result of foreclosure or by deed-in-lieu of foreclosure is classified as foreclosed real estate until it is sold. When property is acquired, it is initially recorded at the fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Holding costs and declines in fair value after acquisition of the property result in charges against income. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $1.1 million at June 30, 2015.

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The following table provides information with respect to our non-performing assets at the dates indicated.

	June 30, 2015			December 31, 2014
	(Dollars in thousands)
Loans accounted for on a non-accrual basis:
Real estate loans:
Residential real estate:
One- to four-family	$	11,094		$	14,649
Home equity lines of credit		1,930			2,277
Commercial real estate		5,271			5,311
Construction		17,775			8,417
Total real estate loans		36,070			30,654
Commercial and industrial		892			855
Total non-accrual loans (1)		36,962			31,509
Foreclosed assets		1,046			1,046
Total non-performing assets	$	38,008		$	32,555
Non-accrual loans to total loans		1.35	%		1.18	%
Non-accrual loans to total assets		1.12	%		0.96	%
Non-performing assets to total assets		1.15	%		0.99	%

(1) TDRs on accrual status not included above totaled $14.8 million at June 30, 2015 and $14.5 million and December 31, 2014.

Non-performing assets increased to $38.0 million, or 1.15% of total assets, at June 30, 2015, from $32.6 million, or 0.99% of total assets, at December 31, 2014. Interest income that would have been recorded for the six months ended June 30, 2015 had non-accruing loans been current according to their original terms amounted to $456,000. Construction loans, including related foreclosed real estate, represented approximately 42.8% of our non-performing assets at June 30, 2015.

Non-accrual loans increased $5.5 million, or 17.3%, to $37.0 million, or 1.35% of total loans outstanding at June 30, 2015, from $31.5 million, or 1.18% of total loans outstanding at December 31, 2014, primarily due to an increase of $9.4 million in non-accrual construction loans, partially offset by a decrease of $3.6 million in non-accrual one- to four-family loans. The increase in non-accrual construction loans during the six months ended June 30, 2015 was primarily due to a $14.0 million construction loan placed on non-accrual status as reduced by a $2.3 million charge-off during the second quarter of 2015. Other non-accrual construction loans were reduced by $4.7 million during the six months ended June 30, 2015 due to collection efforts. The decrease in non-accrual one- to four-family loans during the six months ended June 30, 2015 resulted from continued account monitoring, collection and workout efforts.

The $14.0 million non-accrual construction loan relationship is collateralized by a multi-family development project located in the City of Boston comprised of a substantially completed 12 unit apartment building and a proposed 16 unit apartment building with a shared parking garage. The loan relationship, which matured on May 1, 2015, was originated in 2008 and modified with a new borrower in 2012 for a total exposure of $18.7 million if it had been fully advanced. The loan relationship is also collateralized by other properties in the City of Boston. All of the collateral properties were appraised in 2014 or 2015 based on “as is” values, with the $2.3 million charge-off based on these appraisals. We are moving toward resolution and have commenced foreclosure proceedings on the other properties with foreclosure sales scheduled for November 2015.

Achieving and maintaining a moderate risk profile by aggressively managing troubled assets has been and will continue to be a primary focus for us. At June 30, 2015, our allowance for loan losses was $30.1 million, or 1.10% of total loans and 81.5% of non-accrual loans, compared to $28.5 million, or 1.06% of total loans and 90.4% of non-performing loans at December 31, 2014. Included in our allowance at June 30, 2015 was a general component of $29.9 million, which is based upon our evaluation of various factors relating to loans not deemed to be impaired. We continue to believe our level of non-performing loans and assets, which declined significantly during the past two years, is manageable and we believe that we have sufficient capital and human resources to manage the collection of our non-performing assets in an orderly fashion.

Foreclosed real estate remained flat at $1.0 million at June 30, 2015 and December 31, 2014. At June 30, 2015, foreclosed real estate consisted of a townhouse construction development project and one residential building lot. We continue to be actively engaged with our borrowers in resolving remaining problem assets and with the effective management of real estate owned as a result of foreclosures.

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Troubled Debt Restructurings. In the course of resolving loans of borrowers with financial difficulties, we may choose to restructure the contractual terms of certain loans, with terms modified to fit the ability of the borrower to repay in line with its current financial status. A loan is considered a troubled debt restructure if, for reasons related to the debtor’s financial difficulties, a concession is granted to the debtor that would not otherwise be considered.

Total TDRs decreased $3.8 million, or 16.5%, to $19.1 million at June 30, 2015 from $22.9 million at December 31, 2014, consisting primarily of a decrease of $4.1 million in TDRs on non-accrual status, partially offset by an increase of $294,000 in TDRs on accrual status. The decrease of $4.2 million in non-accrual construction TDRs during the six months ended June 30, 2015 was primarily due to a principal paydown resulting from the sale of a portion of a construction loan relationship. Modifications of TDRs consist of rate reductions, loan term extensions or provisions for interest-only payments for specified periods up to 12 months. We have generally been successful with the concessions we have offered to borrowers to date. We generally return TDRs to accrual status when they have sustained payments for six consecutive months based on the restructured terms and future payments are reasonably assured. Interest income that would have been recorded for the six consecutive months ended June 30, 2015 had TDRs been current according to their original terms amounted to $18,000. We recognized $461,000 of interest income on TDRs for the six months ended June 30, 2015.

Potential Problem Loans. Certain loans are identified during our loan review process that are currently performing in accordance with their contractual terms and we ultimately expect to receive payment in full of principal and interest, but it is deemed probable that we will be unable to collect all the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. This may result from deteriorating conditions such as cash flows, collateral values or creditworthiness of the borrower. These loans are classified as impaired but are not accounted for on a non-accrual basis.

Other potential problem loans are those loans that are currently performing, but where known information about possible credit problems of the borrowers causes us to have concerns as to the ability of such borrowers to comply with contractual loan repayment terms. These other potential problem loans are generally loans classified as “substandard” or 5-rated loans in accordance with our nine-grade internal loan rating system that is consistent with guidelines established by banking regulators. At June 30, 2015, other potential problem loans totaled $9.0 million, including $1.9 million of construction loans and $7.1 million of multi-family loans.

Allowance for Loan Losses. The allowance for loan losses is maintained at levels considered adequate by management to provide for probable loan losses inherent in the loan portfolio as of the consolidated balance sheet reporting dates. The allowance for loan losses is based on management’s assessment of various factors affecting the loan portfolio, including portfolio composition, delinquent and non-accrual loans, national and local business conditions and loss experience and an overall evaluation of the quality of the underlying collateral.

Changes in the allowance for loan losses during the periods indicated were as follows:

	Six Months Ended June 30,
	2015			2014
	(Dollars in thousands)
Beginning balance	$	28,469		$	25,335
Provision for loan losses		3,711			829
Charge offs:
One- to four-family		(160	)		(54	)
Home equity lines of credit		—			(5	)
Commercial real estate		—			(12	)
Construction		(2,287	)		—
Commercial and industrial		(33	)		—
Consumer		(118	)		(86	)
Total charge-offs		(2,598	)		(157	)
Recoveries:
One- to four-family		8			44
Commercial real estate		18			—
Construction		458			21
Commercial and industrial		1			6
Consumer		42			53
Total recoveries		527			124
Net charge-offs		(2,071	)		(33	)
Ending balance	$	30,109		$	26,131
Allowance to non-accrual loans		81.46	%		70.08	%
Allowance to total loans outstanding		1.10	%		1.09	%
Net charge-offs to average loans outstanding		0.15	%		0.00	%

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Our provision for loan losses was $3.7 million for the six months ended June 30, 2015 compared to $829,000 for the six months ended June 30, 2014. The increase was primarily due to a $2.3 million provision and charge-off for a construction loan relationship during the second quarter of 2015. The changes in the provision for loan losses were also based on management’s assessment of loan portfolio growth and composition changes, historical charge-off trends, an ongoing evaluation of credit quality and current economic conditions. The allowance for loan losses was $30.1 million or 1.10% of total loans outstanding at June 30, 2015, compared to $26.1 million or 1.09% of total loans outstanding at June 30, 2014. The increase in the allowance for loan losses was primarily due to increases in the construction and commercial and industrial loan categories, as such loans have higher inherent credit risk than loans in our residential real estate loan categories. We continue to assess the adequacy of our allowance for loan losses in accordance with established policies.

The following tables set forth the breakdown of the allowance for loan losses by loan category at the dates indicated:

	June 30, 2015								December 31, 2014
	Amount		Percent of Allowance to Total Allowance			Percent of Loans in Category of Total Loans			Amount		Percent of Allowance to Total Allowance			Percent of Loans in Category of Total Loans
	(Dollars in thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	1,517		5.0	%		16.8	%	$	1,849		6.5	%		17.5	%
Multi-family		3,522		11.7			14.6			3,635		12.8			15.3
Home equity lines of credit		152		0.5			1.8			100		0.4			1.9
Commercial real estate		12,816		42.6			41.3			13,000		45.6			42.8
Construction		6,811		22.6			12.2			5,155		18.1			9.9
Total real estate loans		24,818		82.4			86.7			23,739		83.4			87.4
Commercial and industrial		5,185		17.2			12.9			4,633		16.3			12.3
Consumer		106		0.4			0.4			97		0.3			0.3
Total loans	$	30,109		100.0	%		100.0	%	$	28,469		100.0	%		100.0	%

The allowance consists of general and allocated components. The general component relates to pools of non-impaired loans and is based on historical loss experience adjusted for qualitative factors. The allocated component relates to loans that are classified as impaired. A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

We had impaired loans totaling $29.1 million and $32.1 million as of June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, impaired loans totaling $2.4 million had a valuation allowance of $198,000. Impaired loans totaling $3.3 million had a valuation allowance of $290,000 at December 31, 2014. Our average investment in impaired loans was $31.7 million and $33.7 million for the six months ended June 30, 2015 and 2014, respectively.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment based on payment status. Accordingly, we do not separately identify individual one- to four-family residential and consumer loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring. We periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are initially classified as impaired.

We measure impairment on residential and commercial loans based on the fair value of collateral, if collateral-dependent, or the present value of expected cash flows. Management has reviewed the collateral value for all impaired and non-accrual loans that were collateral-dependent as of June 30, 2015 and considered any probable loss in determining the allowance for loan losses.

For residential loans measured for impairment based on the collateral value, we generally will do the following:

• When a loan becomes seriously delinquent, generally 60 days past due, we obtain third-party appraisals that are generally the basis for charge-offs when a loss is indicated, prior to the foreclosure sale, but usually no later than when such loans are 180 days past due. We generally are able to complete the foreclosure process within six to nine months from receipt of the third-party appraisal.

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• We make adjustments to appraisals based on updated economic information, if necessary, prior to the foreclosure sale. We review current market factors to determine whether, in management’s opinion, downward adjustments to the most recent appraised values may be warranted. If so, we use our best estimate to apply an estimated discount rate to the appraised values to reflect current market factors.

• Appraisals we receive are based on comparable property sales.

For commercial loans measured for impairment based on the collateral value, we generally will do the following:

• We obtain a third-party appraisal at the time a loan is deemed to be in a workout situation and there is no indication that the loan will return to performing status, generally when the loan is 90 days or more past due. One or more updated third-party appraisals are obtained prior to foreclosure depending on the foreclosure timeline. In general we order new appraisals annually on loans in the process of foreclosure.

• We make downward adjustments to appraisals when conditions warrant. Adjustments are made by applying a discount to the appraised value based on occupancy, recent changes in condition to the property and certain other factors. Adjustments are also made to appraisals for construction projects involving residential properties based on recent sales of units. Losses are recognized if the appraised value less estimated costs to sell is less than our carrying value of the loan.

• Appraisals we receive are generally based on a reconciliation of comparable property sales and income capitalization approaches. For loans on construction projects involving residential properties, appraisals are generally based on a discounted cash flow analysis assuming a bulk sale to a single buyer.

Loans that are partially charged off generally remain on non-accrual status until foreclosure or such time that they are performing in accordance with the terms of the loan and have a sustained payment history of at least six consecutive months. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. Loan losses are charged against the allowance when we believe the uncollectability of a loan balance is confirmed; for collateral-dependent loans, generally when appraised values (as adjusted values, if applicable) less estimated costs to sell, are less than our carrying values.

Although we believe that we use the best information available to establish the allowance for loan losses, future adjustments to the allowance for loan losses may be necessary and our results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations. Furthermore, while we believe we have established our allowance for loan losses in conformity with generally accepted accounting principles in the United States of America, there can be no assurance that regulators, in reviewing our loan portfolio, will not require us to increase our allowance for loan losses. In addition, because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that the existing allowance for loan losses is adequate or that increases will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. Any material increase in the allowance for loan losses may adversely affect our financial condition and results of operations.

Securities Portfolio. At June 30, 2015, our securities portfolio was $175.2 million, or 5.3% of total assets. At that date, $33.6 million, or 19.2% of the securities portfolio, was invested in corporate bonds. The amortized cost and fair value of corporate bonds in the financial services sector was $28.4 million and $28.6 million, respectively. The remainder of the corporate bond portfolio includes companies from a variety of industries. Refer to Note 4 Securities Available for Sale in Notes to the Unaudited Consolidated Financial Statements within this report for more detail regarding the investments held in the Company’s securities portfolio.

At June 30, 2015, we had no investments in a single company or entity that had an aggregate book value in excess of 10% of our stockholders equity.

Each reporting period, we evaluate all securities with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”). OTTI is required to be recognized if (1) we intend to sell the security; (2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that we intend to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit related OTTI is recognized in other comprehensive income/loss, net of applicable taxes.

As of June 30, 2015, the net unrealized gain on the total debt securities portfolio was $889,000. The most significant market valuation decrease related to any one debt security within the portfolio at June 30, 2015 was $24,000. We have no indication that the issuer will be unable to continue to service the obligations, and management does intend not to sell, and more likely than not will not be required to sell, such bond before the earlier of recovery or maturity. As a result, management considers the decline in market value to be temporary.

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As of June 30, 2015, the net unrealized gain on the total marketable equity securities portfolio was $523,000. The most significant market valuation decrease related to any one equity security within the portfolio at June 30, 2015 was $345,000. Although the issuers have shown declines in earnings, no issues have been identified that cause management to believe the decline in market value is other than temporary, and we have the ability and intent to hold these investments until a recovery of fair value. In analyzing an equity issuer’s financial condition, management considers industry analysts’ reports, financial performance and projected target prices of investment analysts within a one-year time frame.

Deposits. Deposits are a major source of our funds for lending and other investment purposes. Deposit inflows and outflows are significantly influenced by general interest rates and money market conditions. Our deposit base is comprised of demand, NOW, money market, regular savings and other deposits, and certificates of deposit. We consider demand, NOW, money market, and regular savings and other deposits to be core deposits. Total deposits increased $47.2 million, or 1.9%, to $2.551 billion at June 30, 2015 from $2.504 billion at December 31, 2014. Our continuing focus on the acquisition and expansion of core deposit relationships resulted in net growth in core deposits of $44.5 million, or 2.5%, to $1.840 billion, or 72.1% of total deposits. For further information about our deposits, refer to Note 6 Deposits in Notes to the Unaudited Consolidated Financial Statements within this report.

The following table sets forth the average balances of deposits for the periods indicated.

	Six Months Ended June 30,
	2015								2014
	Average Balance		Average Rate			Percent of Total Deposits			Average Balance		Average Rate			Percent of Total Deposits
	(Dollars in thousands)
Demand deposits	$	309,185		—	%		13.7	%	$	275,550		—	%		18.8	%
NOW deposits		289,340		0.58			11.6			226,714		0.56			9.8
Money market deposits		960,554		0.84			35.6			853,773		0.88			34.2
Regular savings and other deposits		279,134		0.18			11.2			264,841		0.26			10.6
Certificates of deposit		695,495		1.15			27.9			678,315		1.22			26.6
Total	$	2,533,708		0.72	%		100.0	%	$	2,299,193		0.77	%		100.0	%

Borrowings. We use borrowings from the Federal Home Loan Bank of Boston to supplement our supply of funds for loans and investments. In addition, we may also purchase federal funds from local banking institutions as an additional short-term funding source for the Bank. At June 30, 2015 and December 31, 2014, Federal Home Loan Bank of Boston advances totaled $140.8 million and $171.9 million, respectively, with a weighted average rate of 1.34% and 1.28%, respectively. Total borrowings decreased $31.1 million, or 18.1%, during the six months ended June 30, 2015, reflecting maturing advances with the Federal Home Loan Bank of Boston totaling $29.5 million with original terms ranging from one to five years and fixed interest rates ranging from 0.33% to 2.86%. At June 30, 2015, we also had an available line of credit of $9.4 million with the Federal Home Loan Bank of Boston at an interest rate that adjusts daily, none of which was outstanding at that date. For further information about our borrowings, refer to Note 7 Borrowings in Notes to the Unaudited Consolidated Financial Statements within this report.

Information relating to borrowings, including the federal funds purchased, is detailed in the following table.

	Six Months Ended June 30,
	2015			2014
	(Dollars in thousands)
Balance outstanding at end of period	$	140,817		$	211,340
Average amount outstanding during the period	$	146,881		$	194,221
Weighted average interest rate during the period		1.36	%		1.32	%
Maximum outstanding at any month end	$	156,637		$	211,340
Weighted average interest rate at end of period		1.34	%		1.25	%

Stockholders’ Equity. Total stockholders’ equity increased $10.9 million, or 1.9%, to $588.6 million at June 30, 2015, from $577.7 million at December 31, 2014. The increase for the six months ended June 30, 2015 was due primarily to $12.0 million in net income and $1.4 million related to stock-based compensation plans, partially offset by a decrease of $2.5 million in accumulated other comprehensive income reflecting a decrease in the fair value of available for sale securities, net of tax. Stockholders’ equity to assets was 17.82% at June 30, 2015, compared to 17.62% at December 31, 2014. Book value per share increased to $10.71 at June 30, 2015 from $10.56 at December 31, 2014. Tangible book value per share increased to $10.46 at June 30, 2015 from $10.31 at December 31, 2014. At June 30, 2015, the Company and the Bank continued to exceed all regulatory capital requirements. For further information regarding regulatory capital requirements and the actual capital amounts and ratios for the Bank and the Company, refer to “Capital Management.”

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Average Balance Sheets and Related Yields and Rates. The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. For purposes of the tables, average balances have been calculated using daily average balances, and non-accrual loans are included in average balances, but are not deemed material. Loan fees are included in interest income on loans but are not material.

	Three Months Ended June 30,
	2015								2014
	Average Balance		Interest (1)			Yield/ Cost (1)(6)			Average Balance		Interest (1)			Yield/ Cost (1)(6)
	(Dollars in thousands)
Assets:
Interest-earning assets:
Loans (2)	$	2,708,690	$	29,346			4.35	%	$	2,364,971	$	25,734			4.36	%
Securities and certificates of deposits		281,526		1,228			1.75			183,100		1,212			2.66
Other interest-earning assets (3)		172,820		188			0.44			147,456		138			0.38
Total interest-earning assets		3,163,036		30,762			3.90			2,695,527		27,084			4.03
Noninterest-earning assets		113,572								116,468
Total assets	$	3,276,608							$	2,811,995
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
NOW deposits	$	283,429		381			0.54		$	236,524		332			0.56
Money market deposits		941,219		1,914			0.82			855,929		1,887			0.88
Regular savings and other deposits		283,702		104			0.15			267,270		174			0.26
Certificates of deposit		693,054		1,960			1.13			677,827		2,014			1.19
Total interest-bearing deposits		2,201,404		4,359			0.79			2,037,550		4,407			0.87
Borrowings		142,867		482			1.35			204,460		655			1.28
Total interest-bearing liabilities		2,344,271		4,841			0.83			2,242,010		5,062			0.91
Noninterest-bearing demand deposits		322,701								293,776
Other noninterest-bearing liabilities		21,500								17,799
Total liabilities		2,688,472								2,553,585
Total stockholders’ equity		588,136								258,410
Total liabilities and stockholders’ equity	$	3,276,608							$	2,811,995
Net interest-earning assets	$	818,765							$	453,517
Fully tax-equivalent net interest income				25,921								22,022
Less: tax-equivalent adjustments				(975	)							(783	)
Net interest income			$	24,946							$	21,239
Interest rate spread (1)(4)							3.07	%							3.12	%
Net interest margin (1)(5)							3.29	%							3.28	%
Average interest-earning assets to average interest-bearing liabilities				134.93	%							120.23	%
Supplemental Information:
Total deposits, including noninterest-bearing demand deposits	$	2,524,105	$	4,359			0.69	%	$	2,331,326	$	4,407			0.76	%
Total deposits and borrowings, including noninterest-bearing demand deposits	$	2,666,972	$	4,841			0.73	%	$	2,535,786	$	5,062			0.80	%

(footnotes begin on following page)

34

(footnotes from previous page)

(1) Income on debt securities, equity securities and revenue bonds included in commercial real estate loans, resulting yields, and 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 June 30, 2015 and 2014, yields on loans before tax-equivalent adjustments were 4.23% and 4.26%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.50% and 2.30%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.78% and 3.91%, respectively. Interest rate spread before tax-equivalent adjustments for the three months ended June 30, 2015 and 2014 was 2.95% and 3.00%, respectively, while net interest margin before tax-equivalent adjustments for the three months ended June 30, 2015 and 2014 was 3.16% and 3.16%, respectively.

(2) Loans on non-accrual status are included in average balances.

(3) Includes Federal Home Loan Bank stock and associated dividends.

(4) Interest rate spread represents the difference between the tax-equivalent 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.

35

	Six Months Ended June 30,
	2015								2014
	Average					Yield/			Average					Yield/
	Balance		Interest (1)			Cost (1)(6)			Balance		Interest (1)			Cost (1)(6)
	(Dollars in thousands)
Assets:
Interest-earning assets:
Loans (2)	$	2,697,590	$	58,465			4.37	%	$	2,339,074	$	50,763			4.38	%
Securities and certificates of deposits		284,144		2,469			1.75			189,151		2,452			2.61
Other interest-earning assets (3)		192,333		358			0.38			124,706		228			0.37
Total interest-earning assets		3,174,067		61,292			3.89			2,652,931		53,443			4.06
Noninterest-earning assets		113,297								113,970
Total assets	$	3,287,364							$	2,766,901
Liabilities and stockholders’ equity:
Interest-bearing liabilities:
NOW deposits	$	289,340		838			0.58		$	226,714		633			0.56
Money market deposits		960,554		3,992			0.84			853,773		3,744			0.88
Regular savings and other deposits		279,134		255			0.18			264,841		342			0.26
Certificates of deposit		695,495		3,951			1.15			678,315		4,093			1.22
Total interest-bearing deposits		2,224,523		9,036			0.82			2,023,643		8,812			0.88
Borrowings		146,881		990			1.36			194,221		1,276			1.32
Total interest-bearing liabilities		2,371,404		10,026			0.85			2,217,864		10,088			0.92
Noninterest-bearing demand deposits		309,185								275,550
Other noninterest-bearing liabilities		22,478								18,609
Total liabilities		2,703,067								2,512,023
Total stockholders’ equity		584,297								254,878
Total liabilities and stockholders’ equity	$	3,287,364							$	2,766,901
Net interest-earning assets	$	802,663							$	435,067
Fully tax-equivalent net interest income				51,266								43,355
Less: tax-equivalent adjustments				(1,927	)							(1,514	)
Net interest income			$	49,339							$	41,841
Interest rate spread (1)(4)							3.04	%							3.14	%
Net interest margin (1)(5)							3.26	%							3.30	%
Average interest-earning assets to average interest-bearing liabilities				133.85	%							119.62	%
Supplemental Information:
Total deposits, including noninterest-bearing demand deposits	$	2,533,708	$	9,036			0.72	%	$	2,299,193	$	8,812			0.77	%
Total deposits and borrowings, including noninterest-bearing demand deposits	$	2,680,589	$	10,026			0.75	%	$	2,493,414	$	10,088			0.82	%

(footnotes begin on following page)

36

(footnotes from previous page)

(1) Income on debt securities, equity securities and revenue bonds included in commercial real estate loans, resulting yields, and 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 six months ended June 30, 2015 and 2014, yields on loans before tax-equivalent adjustments were 4.25% and 4.27%, respectively, yields on securities and certificates of deposit before tax-equivalent adjustments were 1.51% and 2.30%, respectively, and yields on total interest-earning assets before tax-equivalent adjustments were 3.77% and 3.95%, respectively. Interest rate spread before tax-equivalent adjustments for the six months ended June 30, 2015 and 2014 was 2.92% and 3.03%, respectively, while net interest margin before tax-equivalent adjustments for the six months ended June 30, 2015 and 2014 was 3.13% and 3.18%, respectively.

(2) Loans on non-accrual status are included in average balances.

(3) Includes Federal Home Loan Bank stock and associated dividends.

(4) Interest rate spread represents the difference between the tax-equivalent 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.

Rate/Volume Analysis. The following table sets forth the effects of changing rates and volumes on our fully tax-equivalent net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

	Three Months Ended June 30,									Six Months Ended June 30,
	2015 Compared to 2014									2015 Compared to 2014
	Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In thousands)
Interest income:
Loans	$	3,724		$	(112	)	$	3,612		$	7,770		$	(68	)	$	7,702
Securities and certificates of deposits		516			(500	)		16			986			(969	)		17
Other interest-earning assets		26			24			50			125			5			130
Total		4,266			(588	)		3,678			8,881			(1,032	)		7,849
Interest expense:
Deposits		298			(346	)		(48	)		751			(527	)		224
Borrowings		(206	)		33			(173	)		(318	)		32			(286	)
Total		92			(313	)		(221	)		433			(495	)		(62	)
Change in fully tax-equivalent net interest income	$	4,174		$	(275	)	$	3,899		$	8,448		$	(537	)	$	7,911

37

Results of Operations for the Three and Six Months Ended June 30, 2015 and 2014

Net Income. Our primary source of income is net interest income. Net interest income is the difference between interest income, which is the income that we earn on our loans and investments, and interest expense, which is the interest that we pay on our deposits and borrowings. Changes in levels of interest rates affect our net interest income. A secondary source of income is non-interest income, which includes revenue that we receive from providing products and services. The majority of our non-interest income generally comes from customer service fees, loan fees, bank-owned life insurance, mortgage banking gains and gains on sales of securities.

Net income information is as follows:

	Three Months Ended June 30,						Change						Six Months Ended June 30,						Change
	2015			2014			Amount			Percent			2015			2014			Amount			Percent
	(Dollars in thousands)
Net interest income	$	24,946		$	21,239		$	3,707			17.5	%	$	49,339		$	41,841		$	7,498			17.9	%
Provision for loan losses		3,651			696			2,955			424.6			3,711			829			2,882			347.6
Non-interest income		4,219			4,037			182			4.5			7,569			8,021			(452	)		(5.6	)
Non-interest expenses		17,347			16,281			1,066			6.5			35,415			33,702			1,713			5.1
Net income		5,585			5,504			81			1.5			11,990			10,275			1,715			16.7
Return on average assets		0.68	%		0.78	%		(0.10	)%		(12.8	)		0.73	%		0.74	%		(0.01	)%		(1.4	)
Return on average equity		3.80	%		8.52	%		(4.72	)%		(55.4	)		4.10	%		8.06	%		(3.96	)%		(49.1	)

Net Interest Income. Net interest income increased $3.7 million, or 17.5%, to $24.9 million for the three months ended June 30, 2015 from $21.2 million for the three months ended June 30, 2014. The net interest rate spread and net interest margin were 2.95% and 3.16%, respectively, for the three months ended June 30, 2015 compared to 3.00% and 3.16%, respectively, for the three months ended June 30, 2014. For the six months ended June 30, 2015, net interest income increased $7.5 million, or 17.9%, to $49.3 million from $41.8 million for the six months ended June 30, 2014. The net interest rate spread and net interest margin were 2.92% and 3.13%, respectively, for the six months ended June 30, 2015 compared to 3.03% and 3.18%, respectively, for the six months ended June 30, 2014. The increases in net interest income were due primarily to loan growth along with declines in the cost of funds, partially offset by declines in yields on interest-earning assets and deposit growth for the three and six months ended June 30, 2015 compared to the same periods in 2014.

The yield on interest-earning assets declined 13 basis points to 3.78% for the three months ended June 30, 2015 compared to 3.91% for the three months ended June 30, 2014, while the cost of funds declined seven basis points to 0.73% for the three months ended June 30, 2015 compared to 0.80% for the three months ended June 30, 2014. The increase in interest income on loans was primarily due to growth in the Company’s average loan balances of $343.7 million, or 14.5%, to $2.709 billion. The decrease in interest expense on deposits was primarily due to the decline in the cost of average total deposits of seven basis points to 0.69%, partially offset by the growth in average total deposits of $192.8 million, or 8.3%, to $2.524 billion for the three months ended June 30, 2015 compared to 0.76% for the three months ended June 30, 2014.

The yield on interest-earning assets declined 18 basis points to 3.77% for the six months ended June 30, 2015 compared to 3.95% for the six months ended June 30, 2014, while the cost of funds declined seven basis points to 0.75% for the six months ended June 30, 2015 compared to 0.82% for the six months ended June 30, 2014. The increase in interest income on loans was primarily due to growth in the Company’s average loan balances of $358.5 million, or 15.3%, to $2.698 billion. The increase in interest expense on deposits was primarily due to growth in average total deposits of $234.5 million, or 10.2%, to $2.534 billion, partially offset by the decline in the cost of average total deposits of five basis points to 0.72% for the six months ended June 30, 2015 compared to 0.77% for the six months ended June 30, 2014.

Provision for Loan Losses. Our provision for loan losses was $3.7 million for the three months ended June 30, 2015 compared to $696,000 for the three months ended June 30, 2014. For the six months ended June 30, 2015, the provision for loan losses was $3.7 million compared to $829,000 for the six months ended June 30, 2014. The increases were primarily due to a $2.3 million provision and charge-off for a construction loan relationship during the second quarter of 2015. For further discussion of the changes in the provision and allowance for loan losses, refer to “Allowance for Loan Losses.”

38

Non-Interest Income. Non-interest income information is as follows:

	Three Months Ended June 30,				Change						Six Months Ended June 30,				Change
	2015		2014		Amount			Percent			2015		2014		Amount			Percent
	(Dollars in thousands)
Customer service fees	$	2,003	$	1,860	$	143			7.7	%	$	3,760	$	3,659	$	101			2.8	%
Loan fees		230		106		124			117.0			396		319		77			24.1
Mortgage banking gains, net		268		267		1			0.4			378		387		(9	)		(2.3	)
Gain on sales of securities, net		1,424		1,505		(81	)		(5.4	)		2,444		3,065		(621	)		(20.3	)
Income from bank-owned life insurance		294		293		1			0.3			590		574		16			2.8
Other income		—		6		(6	)		(100.0	)		1		17		(16	)		(94.1	)
Total non-interest expenses	$	4,219	$	4,037	$	182			4.5	%	$	7,569	$	8,021	$	(452	)		(5.6	)%

The increases in customer service fees were primarily due to interchange fees earned as a result of the increasing number and activity in demand deposit accounts. The decreases in gain on sales of securities, net, reflected a decrease in the number of securities sold during the three and six months ended June 30, 2015 compared to the same periods in 2014.

Non-Interest Expense. Non-interest expense information is as follows:

	Three Months Ended June 30,				Change						Six Months Ended June 30,				Change
	2015		2014		Amount			Percent			2015		2014		Amount			Percent
	(Dollars in thousands)
Salaries and employee benefits	$	10,717	$	10,017	$	700			7.0	%	$	21,884	$	20,818	$	1,066			5.1	%
Occupancy and equipment		2,368		2,216		152			6.9			4,988		4,777		211			4.4
Data processing		1,249		909		340			37.4			2,512		2,070		442			21.4
Marketing and advertising		895		688		207			30.1			1,789		1,495		294			19.7
Professional services		664		659		5			0.8			1,337		1,300		37			2.8
Foreclosed real estate		15		199		(184	)		(92.5	)		29		210		(181	)		(86.2	)
Deposit insurance		479		531		(52	)		(9.8	)		940		1,082		(142	)		(13.1	)
Other general and administrative		960		1,062		(102	)		(9.6	)		1,936		1,950		(14	)		(0.7	)
Total non-interest expenses	$	17,347	$	16,281	$	1,066			6.5	%	$	35,415	$	33,702	$	1,713			5.1	%

The increases in salaries and employee benefits expense were primarily due to annual employee salary increases and higher expenses related to the Bank’s employee stock ownership plan during the current period. The increases in data processing expense reflected a one-time cost reduction during the second quarter of 2014 along with a scheduled contractual increase and business growth during the current period. The increases in marketing and advertising expense reflected the Bank’s new and expanded advertising campaign in our Boston area market. The Company’s efficiency ratio was 62.53% for the three months ended June 30, 2015 compared to 68.49% for the three months ended June 30, 2014. For the six months ended June 30, 2015, the efficiency ratio was 65.02% compared to 72.02% for the six months ended June 30, 2014.

Income Tax Provision. We recorded a provision for income taxes of $2.6 million for the three months ended June 30, 2015, reflecting an effective tax rate of 31.6%, compared to $2.8 million, or a 33.7% effective tax rate, for the three months ended June 30, 2014. For the six months ended June 30, 2015, the provision for income taxes of $5.8 million for the six months ended June 30, 2015, reflecting an effective tax rate of 32.6%, compared to $5.1 million, or a 33.0% effective tax rate, for the six months ended June 30, 2014. The changes in the effective tax provision were primarily due to changes in the components of pre-tax income.

Liquidity Management. Liquidity is the ability to meet current and future financial obligations of a short-term nature. Our primary sources of funds consist of deposit inflows, loan repayments, maturities of and payments on investment securities and borrowings from the Federal Home Loan Bank of Boston. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our assessment of (1) expected loan demand, (2) expected deposit flows, (3) yields available on interest-earning deposits and securities and (4) the objectives of our asset/liability management policy.

39

Our most liquid assets are cash and due from banks, and certificates of deposit with other banks. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At June 30, 2015, cash and due from banks totaled $176.7 million and certificates of deposit totaled $95.0 million. In addition, at June 30, 2015, we had $262.7 million of available borrowing capacity with the Federal Home Loan Bank of Boston, including a $9.4 million line of credit. On June 30, 2015, we had $140.8 million of advances outstanding.

A significant use of our liquidity is the funding of loan originations. At June 30, 2015 and December 31, 2014, we had total loan commitments outstanding of $982.9 million and $670.3 million, respectively. Historically, many of the commitments expire without being fully drawn; therefore the total amount of commitments does not necessarily represent future cash requirements. For further information, see Note 8 Commitments and Derivatives in the Notes to the Unaudited Consolidated Financial Statements, within this report.

Another significant use of our liquidity is the funding of deposit withdrawals. Certificates of deposit due within one year of June 30, 2015 totaled $463.5 million, or 65.2% of total certificates of deposit. If these maturing deposits do not remain with us, we will be required to utilize other sources of funds. Historically, a significant portion of certificates of deposit that mature have remained with us. Meridian Bancorp, Inc. is a separate legal entity from East Boston Savings Bank and it must provide for its own liquidity to pay dividends and repurchase its common stock and for other corporate purposes. Meridian Bancorp, Inc.’s primary source of liquidity is proceeds from the second-step offering, and to a lesser extent dividend payments received from East Boston Savings Bank. The ability of East Boston Savings Bank to pay dividends is subject to regulatory requirements. At June 30, 2015, Meridian Bancorp, Inc. (on an unconsolidated basis) had cash and cash equivalents, certificates of deposit and securities available for sale totaling $152.5 million. We have the ability to attract and retain deposits by adjusting the interest rates offered.

Capital Management. Both the Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board and the Federal Deposit Insurance Corporation, respectively, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. At June 30, 2015, both the Company and the Bank exceeded all of their respective regulatory capital requirements. The Bank is considered “well capitalized” under regulatory guidelines.

In July 2013, the FDIC and the other federal bank regulatory agencies issued a final rule that revised their leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. Among other things, the rule establishes a new common equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets), increases the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets), sets the leverage ratio at a uniform 4% of total assets and assigns a higher risk weight (150%) to exposures that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The final rule also requires unrealized gains and losses on certain “available-for-sale” securities holdings to be included for purposes of calculating regulatory capital requirements unless a one-time opt-out is exercised. The Bank has elected to exercise its one-time option to opt-out of the requirement under the final rule to include certain “available-for-sale” securities holdings for purposes of calculating its regulatory capital requirements. The rule limits a banking organization’s capital distributions and certain discretionary bonus payments to executive officers if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The final rule is effective January 1, 2015. The “capital conservation buffer” will be phased in from January 1, 2016 to January 1, 2019, when the full capital conservation buffer will be effective.

Consolidated regulatory capital requirements identical to those applicable to the Bank apply to bank holding companies such as the Company as of January 1, 2015. As is the case with institutions themselves, the capital conservation buffer will be phased in between 2016 and 2019.

The Company may use capital management tools such as cash dividends and common share repurchases. Pursuant to Federal Reserve Board regulations, we may not repurchase shares for at least one year following the second-step conversion. In addition, Massachusetts regulations restrict repurchases for the first three years following the second-step conversion except where compelling and valid business reasons are established to the satisfaction of the Massachusetts Commissioner of Banks. We are also subject to the Federal Reserve Board’s notice provisions for stock repurchases.

40

The Company’s and the Bank’s actual capital amounts and ratios follow:

						Minimum					Minimum
						Capital					To Be Well
	Actual					Requirement					Capitalized Under
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
June 30, 2015
Total Capital (to Risk Weighted Assets):
Company	$	604,890		19.8	%	$	244,629		8.0	%	$	305,787		10.0	%
Bank		429,030		14.0			244,916		8.0			306,145		10.0
Tier 1 Capital (to Risk Weighted Assets):
Company		574,546		18.8			183,472		6.0			244,629		8.0
Bank		398,686		13.0			183,687		6.0			244,916		8.0
Common Equity Tier 1 Capital (to Risk Weighted Assets):
Company		574,546		18.8			137,604		4.5			198,761		6.5
Bank		398,686		13.0			137,765		4.5			198,994		6.5
Tier 1 Capital (to Average Assets):
Company		574,546		17.5			131,064		4.0			163,830		5.0
Bank		398,686		12.8			124,416		4.0			155,520		5.0
December 31, 2014
Total Capital (to Risk Weighted Assets):
Company	$	591,563		20.3	%	$	232,621		8.0	%		N/A		N/A
Bank		416,069		14.9			223,348		8.0		$	279,178		10.0	%
Tier 1 Capital (to Risk Weighted Assets):
Company		561,072		19.3			116,311		4.0			N/A		N/A
Bank		385,578		13.8			111,674		4.0			167,511		6.0
Tier 1 Capital (to Average Assets):
Company		561,072		17.4			128,662		4.0			N/A		N/A
Bank		385,578		12.3			125,176		4.0			156,470		5.0

A reconciliation of the Company’s and Bank’s stockholders’ equity to regulatory capital follows:

	Company			Bank
	(In thousands)
June 30, 2015
Total stockholders’ equity per financial statements	$	588,597		$	412,724
Adjustments to Common Equity Tier 1 capital:
Accumulated other comprehensive income		(364	)		(351	)
Goodwill disallowed		(13,687	)		(13,687	)
Total Common Equity Tier 1 capital		574,546			398,686
Adjustments to Tier 1 capital:
Additional Tier 1 capital additions (deductions)		—			—
Total Tier 1 capital		574,546			398,686
Adjustments to total capital:
Allowance for loan losses		30,109			30,109
45% of net unrealized gains on marketable equity securities		235			235
Total regulatory capital	$	604,890		$	429,030

41

	Company			Bank
	(In thousands)
December 31, 2014
Total stockholders’ equity per financial statements	$	577,710		$	402,247
Adjustments to Tier 1 capital:
Accumulated other comprehensive income		(2,898	)		(2,929	)
Goodwill disallowed		(13,687	)		(13,687	)
Servicing assets disallowed		(53	)		(53	)
Total Tier 1 capital		561,072			385,578
Adjustments to total capital:
Allowance for loan losses		28,469			28,469
45% of net unrealized gains on marketable equity securities		2,022			2,022
Total regulatory capital	$	591,563		$	416,069

Off-Balance Sheet Arrangements. In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles in the United States of America are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit.

For the six months ended June 30, 2015, we engaged in no off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.

42

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk Management. Our earnings and the market value of our assets and liabilities are subject to fluctuations caused by changes in the level of interest rates. We manage the interest rate sensitivity of our interest-bearing liabilities and interest-earning assets in an effort to minimize the adverse effects of changes in the interest rate environment. Deposit accounts typically react more quickly to changes in market interest rates than mortgage loans because of the shorter maturities of deposits. As a result, sharp increases in interest rates may adversely affect our earnings while decreases in interest rates may beneficially affect our earnings. To reduce the potential volatility of our earnings, we have sought to improve the match between asset and liability maturities and rates, while maintaining an acceptable interest rate spread. Our strategy for managing interest rate risk emphasizes: originating loans with adjustable interest rates; selling the residential real estate fixed-rate loans with terms greater than 10 years that we originate; promoting core deposit products; and adjusting the interest rates and maturities of funding sources, as necessary.

We have an Asset/Liability Management Committee to coordinate all aspects of asset/liability management. The committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.

Net Interest Income Simulation Analysis. We analyze our interest rate sensitivity position to manage the risk associated with interest rate movements through the use of interest income simulation. The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest sensitive.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period.

Our goal is to manage asset and liability positions to moderate the effects of interest rate fluctuations on net interest income. Interest income simulations are completed quarterly and presented to the Asset/Liability Committee and the Board of Directors. The simulations provide an estimate of the impact of changes in interest rates on net interest income under a range of assumptions. The numerous assumptions used in the simulation process are reviewed by the Asset/Liability Committee and the Executive Committee on a quarterly basis. Changes to these assumptions can significantly affect the results of the simulation. The simulation incorporates assumptions regarding the potential timing in the repricing of certain assets and liabilities when market rates change and the changes in spreads between different market rates. The simulation analysis incorporates management’s current assessment of the risk that pricing margins will change adversely over time due to competition or other factors.

Simulation analysis is only an estimate of our interest rate risk exposure at a particular point in time. We continually review the potential effect changes in interest rates could have on the repayment of rate sensitive assets and funding requirements of rate sensitive liabilities.

The simulation uses projected repricing of assets and liabilities on the basis of contractual maturities, anticipated repayments and scheduled rate adjustments. Prepayment rates can have a significant impact on interest income simulation. Because of the large percentage of loans we hold, rising or falling interest rates have a significant impact on the prepayment speeds of our earning assets that in turn affect the rate sensitivity position. When interest rates rise, prepayments tend to slow. When interest rates fall, prepayments tend to rise. Our asset sensitivity would be reduced if prepayments slow and vice versa. While we believe such assumptions to be reasonable, there can be no assurance that assumed prepayment rates will approximate actual future mortgage-backed security and loan repayment activity.

The following table reflects changes in estimated net interest income for the Bank due to immediate non-parallel changes in interest rates for the subsequent one year period as of the dates indicated.

	June 30, 2015								December 31, 2014
Increase (Decrease) in Market Interest Rates	Amount		Change			Percent			Amount		Change			Percent
	(Dollars in thousands)
300	$	90,014	$	(8,676	)		(8.79	)%	$	87,006	$	(8,254	)		(8.66	)%
Flat		98,690								95,260
-100		99,408		718			0.73			96,386		1,126			1.18

43

ITEM 4. CONTROLS AND PROCEDURES

(a) Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Controls over Financial Reporting There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

44

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Periodically, there have been various claims and lawsuits against us, such as claims to enforce liens, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

ITEM 1A. RISK FACTORS

For information regarding our risk factors, see “Risk Factors,” in the Company’s 2014 Annual Report on Form 10-K, filed with the SEC on March 13, 2015, which is available through the SEC’s website at www.sec.gov. As of June 30, 2015, our risk factors have not changed materially from those reported in the annual report. The risks described in the annual report are not the only risks that we face. Additional risks not presently known to us, or that we currently deem immaterial, may also adversely affect our business, financial condition or results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a.) Not applicable.

(b.) Not applicable.

(c.) There were no repurchases of common stock during the quarter ended June 30, 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

45

ITEM 6. EXHIBITS

3.1	Articles of Incorporation of Meridian Bancorp, Inc. (Incorporated by reference to the Registration Statement on Form S-1 of Meridian Bancorp, Inc. (File No. 333-194454), originally filed with the Securities and Exchange Commission on March 10, 2014)
3.2	Bylaws of Meridian Bancorp, Inc. (Incorporated by reference to the Registration Statement on Form S-1 of Meridian Bancorp, Inc. (File No. 333-194454), originally filed with the Securities and Exchange Commission on March 10, 2014)
4	Form of Common Stock Certificate of Meridian Bancorp, Inc. (Incorporated by reference to the Registration Statement on Form S-1 of Meridian Bancorp, Inc. (File No. 333-194454), originally filed with the Securities and Exchange Commission on March 10, 2014)
10.1	[Reserved]
10.2	[Reserved]
10.3	[Reserved]
10.4	Amended and Restated Employment Agreement with Richard J. Gavegnano and East Boston Savings Bank dated July 28, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.5	East Boston Savings Bank Amended and Restated Employee Severance Compensation Plan filed as an exhibit to Form 10-Q filed on November 10, 2014
10.6	Form of Amended and Restated Supplemental Executive Retirement Agreements with Directors Vincent D. Basile, Domenic A. Gambardella, Edward L. Lynch, Gregory F. Natalucci, and James G. Sartori filed as an exhibit to Form 10-Q filed on November 10, 2014
10.7	Amended and Restated Supplemental Executive Retirement Agreement with Richard J. Gavegnano filed as an exhibit to Form 10-Q filed on November 10, 2014
10.8	2008 Equity Incentive Plan (Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement for its 2008 Annual Meeting, as filed with the Securities and Exchange Commission on July 11, 2008)
10.9	Amended and Restated Employment Agreement between Edward J. Merritt and East Boston Savings Bank dated July 28, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.10	Amended and Restated Supplemental Executive Retirement Agreement between East Boston Savings Bank and Edward J. Merritt dated July 28, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.11	Joint Beneficiary Designation Agreement between Edward J. Merritt and Mt. Washington Co-operative Bank (Incorporated by reference to the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2010)
10.12	First Amendment to Joint Beneficiary Designation Agreement between Edward J. Merritt and Mt. Washington Co-operative Bank (Incorporated by reference to the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 16, 2010)
10.13	Amended and Restated Two-Year Change in Control Agreement between Mark Abbate and East Boston Savings Bank dated July 28, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.14	Incentive Compensation Plan filed as an exhibit to Form 10-K filed on March 17, 2014
10.15	Amended and Restated Two-Year Change in Control Agreement between John Migliozzi and East Boston Savings Bank dated July 28, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.16	East Boston Non-Qualified Supplemental Employee Stock Ownership Plan dated October 1, 2014 filed as an exhibit to Form 10-Q filed on November 10, 2014
10.17	Amended and Restated Two-Year Change in Control Agreement between Frank Romano and East Boston Savings Bank dated July 28, 2014 filed as an exhibit to Form 10-K filed on March 13, 2015
21	Subsidiaries of Registrant filed as an exhibit to Form 10-Q filed on November 10, 2014
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial statements formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Net Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to the Consolidated Financial Statements.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

46

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MERIDIAN BANCORP, INC. (Registrant)
Date: August 10, 2015	By:	/s/ Richard J. Gavegnano
		Richard J. Gavegnano Chairman, President and Chief Executive Officer (Principal Executive Officer)
Date: August 10, 2015	By:	/s/ Mark L. Abbate
		Mark L. Abbate Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)

47

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a)

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Richard J. Gavegnano, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Meridian Bancorp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13(a)-15(f) and 15(d)-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 10, 2015	/s/ Richard J. Gavegnano
	Richard J. Gavegnano Chairman, President and Chief Executive Officer (Principal Executive Officer)

48

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a)

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Mark L. Abbate, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Meridian Bancorp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13(a)-15(f) and 15(d)-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 10, 2015	/s/ Mark L. Abbate
	Mark L. Abbate Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)

49

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Meridian Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Meridian Bancorp, Inc. as of and for the period covered by the Report.

Dated: August 10, 2015	/s/ Richard J. Gavegnano
	Richard J. Gavegnano Chairman, President and Chief Executive Officer (Principal Executive Officer)
Dated: August 10, 2015	/s/ Mark L. Abbate
	Mark L. Abbate Executive Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)

50

XML

Loans - Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014		Jun. 30, 2015	Jun. 30, 2014		Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 28,601	$ 25,440		$ 28,469	$ 25,335
Provision (credit) for loan losses	3,651	696	[1]	3,711	829	[1]
Charge-offs	(2,351)	(41)		(2,598)	(157)
Recoveries	208	36		527	124
Ending balance	30,109	26,131		30,109	26,131
Amount of allowance for loan losses for loans deemed to be impaired				198			$ 290
Amount of allowance for loan losses for loans not deemed to be impaired				29,911			28,179
Total, Amount of allowance	28,601	25,440		30,109	26,131		28,469
Loans deemed to be impaired				29,066			32,078
Loans not deemed to be impaired				2,718,574			2,647,633
Total, Amount of allowance impaired				2,747,640			2,679,711
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	4,853	3,928		4,633	3,433
Provision (credit) for loan losses	331	254		584	746
Charge-offs				(33)
Recoveries	1	3		1	6
Ending balance	5,185	4,185		5,185	4,185
Amount of allowance for loan losses for loans deemed to be impaired				3			14
Amount of allowance for loan losses for loans not deemed to be impaired				5,182			4,619
Total, Amount of allowance	4,853	3,928		5,185	4,185		4,633
Loans deemed to be impaired				996			984
Loans not deemed to be impaired				353,700			329,829
Total, Amount of allowance impaired				354,696			330,813
One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for loan losses for loans deemed to be impaired				3			76
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	5,356	4,149		5,155	4,374
Provision (credit) for loan losses	3,576	353		3,485	117
Charge-offs	(2,287)			(2,287)
Recoveries	166	10		458	21
Ending balance	6,811	4,512		6,811	4,512
Amount of allowance for loan losses for loans deemed to be impaired							32
Amount of allowance for loan losses for loans not deemed to be impaired				6,811			5,123
Total, Amount of allowance	5,356	4,149		6,811	4,512		5,155
Loans deemed to be impaired				19,174			9,818
Loans not deemed to be impaired				316,765			256,162
Total, Amount of allowance impaired				335,939			265,980
Residential Portfolio Segment [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,663	1,960		1,849	1,991
Provision (credit) for loan losses	(139)	(52)		(180)	(68)
Charge-offs	(7)			(160)	(54)
Recoveries		5		8	44
Ending balance	1,517	1,913		1,517	1,913
Amount of allowance for loan losses for loans deemed to be impaired				3			76
Amount of allowance for loan losses for loans not deemed to be impaired				1,514			1,773
Total, Amount of allowance	1,663	1,960		1,517	1,913		1,849
Loans deemed to be impaired				2,071			4,415
Loans not deemed to be impaired				460,826			464,145
Total, Amount of allowance impaired				462,897			468,560
Residential Portfolio Segment [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	3,608	3,276		3,635	2,419
Provision (credit) for loan losses	(86)	70		(113)	927
Ending balance	3,522	3,346		3,522	3,346
Amount of allowance for loan losses for loans deemed to be impaired				164			168
Amount of allowance for loan losses for loans not deemed to be impaired				3,358			3,467
Total, Amount of allowance	3,608	3,276		3,522	3,346		3,635
Loans deemed to be impaired				1,422			1,443
Loans not deemed to be impaired				400,162			408,232
Total, Amount of allowance impaired				401,584			409,675
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	95	105		100	155
Provision (credit) for loan losses	57	5		52	(45)
Charge-offs		(5)			(5)
Ending balance	152	105		152	105
Amount of allowance for loan losses for loans not deemed to be impaired				152			100
Total, Amount of allowance	95	105		152	105		100
Loans deemed to be impaired							20
Loans not deemed to be impaired				48,274			50,071
Total, Amount of allowance impaired				48,274			50,091
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	12,942	11,924		13,000	12,831
Provision (credit) for loan losses	(144)	57		(202)	(838)
Charge-offs					(12)
Recoveries	18			18
Ending balance	12,816	11,981		12,816	11,981
Amount of allowance for loan losses for loans deemed to be impaired				28
Amount of allowance for loan losses for loans not deemed to be impaired				12,788			13,000
Total, Amount of allowance	12,942	11,924		12,816	11,981		13,000
Loans deemed to be impaired				5,403			15,398
Loans not deemed to be impaired				1,129,283			1,130,422
Total, Amount of allowance impaired				1,134,686			1,145,820
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	84	98		97	132
Provision (credit) for loan losses	56	9		85	(10)
Charge-offs	(57)	(36)		(118)	(86)
Recoveries	23	18		42	53
Ending balance	106	89		106	89
Amount of allowance for loan losses for loans not deemed to be impaired				106			97
Total, Amount of allowance	$ 84	$ 98		106	$ 89		97
Loans not deemed to be impaired				9,564			8,772
Total, Amount of allowance impaired				$ 9,564			8,772
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above							41
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Portfolio Segment [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above							$ 41

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value transfer assets and liabilities	$ 0		$ 0
Liabilities measured at fair value non-recurring basis	886,000	$ 1,001,000
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities measured at fair value non-recurring basis	$ 0

XML

Commitments and Derivatives - Loan Commitments Outstanding (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loss Contingencies [Line Items]
Total loan commitments outstanding	$ 982,899	$ 670,333
Construction [Member] | Unadvanced Portion of Existing Loans [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	405,472	315,206
Construction [Member] | Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	180,128	116,215
Home Equity Lines of Credit [Member] | Unadvanced Portion of Existing Loans [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	33,358	32,861
One-to Four-Family [Member] | Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	14,599	20,641
Commercial Real Estate Portfolio Segment [Member] | Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	186,079	46,260
Unallocated Financing Receivables [Member] | Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	1,343	785
Other Lines and Letters of Credit [Member] | Unadvanced Portion of Existing Loans [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	120,585	119,352
Commercial and Industrial [Member] | Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Total loan commitments outstanding	$ 41,335	$ 19,013

XML

Fair Values of Assets and Liabilities - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - Loan Purchase Commitments [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ 96	$ 90	$ 101	$ 88
Total realized and unrealized losses included in net income	169	30	164	32
Ending balance	265	120	265	120
Total realized gain relating to instruments still held at period end	$ 265	$ 120	$ 265	$ 120

XML

Borrowings - Long-term Debt, FHLB Advances (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
2015	$ 10,000	$ 39,500
2016	41,500	41,500
2017	74,632	74,632
2018	0	0
2019	7,571	8,454
2020	7,114	7,813
Long-term Debt, Total	$ 140,817	$ 171,899
Weighted Average Rate, 2015	1.83%	1.20%
Weighted Average Rate, 2016	1.20%	1.20%
Weighted Average Rate, 2017	1.38%	1.38%
Weighted Average Rate, 2018	0.00%	0.00%
Weighted Average Rate, 2019	1.23%	1.23%
Weighted Average Rate, 2020	1.22%	1.22%
Weighted Average Rate	1.34%	1.28%

XML

Securities Available for Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	$ 15,830
Fair Value, within 1 year	15,968
Amortized Cost, over 1 year to 5 years	69,820
Fair Value, over 1 year to 5 years	70,046
Amortized Cost, over 5 years	13,214
Fair Value, over 5 years	13,739
Amortized Cost, Total	98,864	$ 123,937
Fair Value, Total	99,753	125,051
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	14,986
Fair Value, within 1 year	15,117
Amortized Cost, over 1 year to 5 years	18,399
Fair Value, over 1 year to 5 years	18,529
Amortized Cost, Total	33,385	48,793
Fair Value, Total	33,646	49,455
Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	43
Fair Value, within 1 year	43
Amortized Cost, over 1 year to 5 years	22,000
Fair Value, over 1 year to 5 years	21,951
Amortized Cost, over 5 years	4,000
Fair Value, over 5 years	3,946
Amortized Cost, Total	26,043	34,548
Fair Value, Total	25,940	34,200
US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, over 1 year to 5 years	24,994
Fair Value, over 1 year to 5 years	25,016
Amortized Cost, Total	24,994	24,991
Fair Value, Total	25,016	24,937
Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, over 5 years	7,924
Fair Value, over 5 years	8,452
Amortized Cost, Total	7,924	8,754
Fair Value, Total	8,452	9,340
Residential Mortgage-backed Securities, Private Label [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, over 5 years	1,290
Fair Value, over 5 years	1,341
Amortized Cost, Total	1,290	1,410
Fair Value, Total	1,341	1,496
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	801
Fair Value, within 1 year	808
Amortized Cost, over 1 year to 5 years	4,427
Fair Value, over 1 year to 5 years	4,550
Amortized Cost, Total	5,228	5,441
Fair Value, Total	5,358	5,623
Financial Services [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	10,989
Fair Value, within 1 year	11,083
Amortized Cost, over 1 year to 5 years	17,399
Fair Value, over 1 year to 5 years	17,514
Amortized Cost, Total	28,388	37,852
Fair Value, Total	28,597	38,347
Industry and Manufacturing [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	2,996
Fair Value, within 1 year	3,028
Amortized Cost, over 1 year to 5 years	1,000
Fair Value, over 1 year to 5 years	1,015
Amortized Cost, Total	3,996	5,935
Fair Value, Total	4,043	6,056
Other Sectors [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, within 1 year	1,001
Fair Value, within 1 year	1,006
Amortized Cost, Total	1,001	1,005
Fair Value, Total	$ 1,006	$ 1,024

XML

Fair Values of Assets and Liabilities - Summary of Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks, fair value	$ 176,654	$ 205,732
Cash and due from banks, carrying amount	176,654	205,732
Certificates of deposit, fair value	95,182	85,096
Certificates of deposit, carrying amount	95,000	85,000
Securities available for sale, carrying amount	175,171	203,521
Federal Home Loan Bank stock, carrying amount	12,725	12,725
Federal Home Loan Bank stock, fair value	12,725	12,725
Loans and loans held for sale, net, carrying amount	2,719,870	2,649,878
Loans and loans held for sale, net, fair value	2,730,834	2,666,049
Accrued interest receivable, carrying amount	8,054	7,748
Accrued interest receivable, fair value	8,054	7,748
Financial liabilities:
Deposits, fair value	2,502,665	2,507,982
Deposits, carrying amount	2,551,166	2,503,935
Borrowings, fair value	141,761	172,074
Borrowings, carrying amount	140,817	171,899
Accrued interest payable, fair value	771	891
Accrued interest payable, carrying amount	771	891
Reported Value Measurement [Member]
Financial assets:
Securities available for sale, carrying amount	175,171	203,521
Derivative Loan Commitments [Member]
Financial liabilities:
Derivative Financial Assets, fair value	124	159
Derivative Financial Assets, carrying amount	124	159
Derivative Financial Liability, fair value	87	36
Derivative Financial Liability, carrying amount	87	36
Forward Loan Sale Commitments [Member]
Financial liabilities:
Derivative Financial Assets, fair value	247	11
Derivative Financial Assets, carrying amount	247	11
Derivative Financial Liability, fair value	19	33
Derivative Financial Liability, carrying amount	19	33
Interest Rate Swaps Asset [Member]
Financial liabilities:
Derivative Financial Assets, fair value	780	932
Derivative Financial Assets, carrying amount	780	932
Interest Rate Swaps Liability [Member]
Financial liabilities:
Derivative Financial Liability, fair value	780	932
Derivative Financial Liability, carrying amount	780	932
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks, fair value	176,654	205,732
Securities available for sale, carrying amount	75,418	78,470
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Certificates of deposit, fair value	95,182	85,096
Securities available for sale, carrying amount	99,753	125,051
Financial liabilities:
Borrowings, fair value	141,761	172,074
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Federal Home Loan Bank stock, fair value	12,725	12,725
Loans and loans held for sale, net, fair value	2,730,834	2,666,049
Accrued interest receivable, fair value	8,054	7,748
Financial liabilities:
Deposits, fair value	2,502,665	2,507,982
Accrued interest payable, fair value	771	891
Fair Value, Inputs, Level 3 [Member] | Derivative Loan Commitments [Member]
Financial liabilities:
Derivative Financial Assets, fair value	124	159
Derivative Financial Liability, fair value	87	36
Fair Value, Inputs, Level 3 [Member] | Forward Loan Sale Commitments [Member]
Financial liabilities:
Derivative Financial Assets, fair value	247	11
Derivative Financial Liability, fair value	19	33
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swaps Asset [Member]
Financial liabilities:
Derivative Financial Assets, fair value	780	932
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swaps Liability [Member]
Financial liabilities:
Derivative Financial Liability, fair value	$ 780	$ 932

XML

Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-term Debt, FHLB Advances

Long-term debt consists of FHLB advances as follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
2015	$	10,000		1.83	%	$	39,500		1.20	%
2016		41,500		1.20			41,500		1.20
2017		74,632		1.38			74,632		1.38
2018		—		—			—		—
2019		7,571		1.23			8,454		1.23
2020		7,114		1.22			7,813		1.22
	$	140,817		1.34	%	$	171,899		1.28	%

XML

Commitments and Derivatives - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014		Jun. 30, 2015	Jun. 30, 2014		Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Cash pledged for collateral interest rate swap	$ 1,400,000			$ 1,400,000			$ 950,000
Derivative loan commitments with a notional amount outstanding	11,500,000			11,500,000			12,200,000
Fair value commitments of an asset	1,151,000			1,151,000			1,102,000
Fair value commitments of liability	886,000			886,000			1,001,000
Mortgage banking gains, net	268,000	$ 267,000	[1]	378,000	$ 387,000	[1]
Net gain (loss) on sale of loans	99,000	237,000		214,000	355,000
Net derivative mortgage banking gains (losses)	169,000	$ 30,000		164,000	$ 32,000
Outstanding commitments due to extension of contract	5,600,000			5,600,000
Total annual payments due to extension of contract	2,200,000			2,200,000
Derivative Loan Commitments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value commitments of an asset	37,000			37,000			123,000
Forward Loan Sale Commitments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative loan commitments with a notional amount outstanding	16,500,000			16,500,000			12,200,000
Fair value commitments of an asset	$ 228,000			$ 228,000
Fair value commitments of liability							$ 22,000

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

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Loans - Summary of Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	$ 14,774	$ 14,480
Total TDRs on non-accrual status	4,365	8,434
Total TDRs	19,139	22,914
One-to Four-Family [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	2,906	2,946
Total TDRs on non-accrual status	1,347	1,469
Multi-Family Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	1,422	1,443
Home Equity Lines of Credit [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	19	20
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	10,111	9,950
Total TDRs on non-accrual status	450	283
Construction [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	174	121
Total TDRs on non-accrual status	2,301	6,496
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs on accrual status	142
Total TDRs on non-accrual status	$ 267	$ 186

XML

Loans - Outstanding Balance of Acquired Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Discount	$ (1,552)	$ (1,787)
Carrying amount	5,330	5,566
Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Outstanding principal balance	6,882	7,353
Total Real Estate Loans [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Outstanding principal balance	5,479	5,776
Total Real Estate Loans [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Outstanding principal balance	608	625
Total Real Estate Loans [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Outstanding principal balance	426	505
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Outstanding principal balance	$ 369	$ 447

XML

Commitments and Derivatives - Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss), Derivative loan commitments	$ 169	$ 30	$ 164	$ 32
Derivative Loan Commitments [Member] | Mortgage Banking Gains, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss), Derivative loan commitments	(35)	103	(86)	141
Forward Loan Sale Commitments [Member] | Mortgage Banking Gains, Net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss), Derivative loan commitments	$ 204	$ (73)	$ 250	$ (109)

XML

Borrowings - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Debt Disclosure [Line Items]
Amount of advances callable by the FHLB prior to maturity	$ 6,500,000
Available line of credit with the FHLB	9,400,000
Amounts drawn on the line of credit	0	$ 0
Multi-Family Residential Real Estate [Member]
Debt Disclosure [Line Items]
Carrying value of commercial real estate loans pledged	60,400,000
Commercial Real Estate Portfolio Segment [Member]
Debt Disclosure [Line Items]
Carrying value of commercial real estate loans pledged	$ 184,000,000

XML

Consolidated Statements of Changes In Stockholders' Equity (Parenthetical)	6 Months Ended
	Jun. 30, 2015 shares	Jun. 30, 2014 shares
ESOP shares earned	60,882	50,682
Stock split, conversion ratio	2.4484	2.4484
Additional Paid-in Capital [Member]
ESOP shares earned	60,882	50,682
Unearned Compensation - ESOP [Member]
ESOP shares earned	60,882	50,682

XML

Loans - Risk Rating (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Multi-Family Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	$ 401,584	$ 409,675
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	1,134,686	1,145,820
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	335,939	265,980
Loans Rated 1 - 3A [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	390,867	399,113
Loans Rated 1 - 3A [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	1,123,746	1,135,540
Loans Rated 1 - 3A [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	314,956	238,505
Loans Rated 4 - 4A [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	2,225	1,960
Loans Rated 4 - 4A [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	5,255	4,832
Loans Rated 5 [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	8,492	8,602
Loans Rated 5 [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	5,685	5,448
Loans Rated 5 [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	20,983	27,475
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	354,696	330,813
Commercial and Industrial [Member] | Loans Rated 1 - 3A [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	328,916	322,013
Commercial and Industrial [Member] | Loans Rated 4 - 4A [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	24,747	7,816
Commercial and Industrial [Member] | Loans Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable Credit Quality Rating	$ 1,033	$ 984

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014		Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 5,585	$ 5,504	[1]	$ 11,990	$ 10,275	[1]
Basic weighted average shares outstanding	52,074,889	53,047,448	[1]	51,969,106	53,029,783	[1]
Effect of dilutive stock options	1,091,671	1,078,317		1,116,573	1,067,997
Diluted weighted average shares outstanding	53,166,560	54,125,765	[1]	53,085,679	54,097,780	[1]
Earnings per share:
Basic	$ 0.11	$ 0.10	[1]	$ 0.23	$ 0.19	[1]
Diluted	$ 0.11	$ 0.10	[1]	$ 0.23	$ 0.19	[1]

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

XML

Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions			6 Months Ended
	Jul. 28, 2014 USD ($) $ / shares shares	Mar. 06, 2014	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Net proceeds from sale of common stock	$ 325.0
Number of common stock sold | shares	32,500,000
Common stock value per share | $ / shares	$ 10.00
Additional funds utilized			$ 16.3
Number of additional shares | shares			1,625,000
Employee stock ownership plan per share | $ / shares			$ 10.00
Percentage of shares issued			5.00%
Stock split, conversion ratio	2.4484	2.4484	2.4484	2.4484
Common stock issued in exchange | shares	22,200,316
Stock split, conversion ratio			2.4484-to-one exchange ratio
Employee Stock Ownership Plan [Member]
Schedule of Available-for-sale Securities [Line Items]
Net proceeds from sale of common stock			$ 302.3
Expenses on sale of common stock			6.5
Net proceeds from the sale of Banks operations and general corporate purposes			$ 159.3
Meridian Financial Services Incorporated [Member]
Schedule of Available-for-sale Securities [Line Items]
Percentage of common stock owned before merger		59.00%

XML

Fair Values of Assets and Liabilities - Assets Measured at Fair Value on a Non-recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	$ 25,983		$ 25,983		$ 14,710
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	24,937		24,937		13,664
Foreclosed Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	1,046		1,046		$ 1,046
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets measured on non recurring basis, gains (losses)	(2,287)	$ (66)	(2,287)	$ (123)
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets measured on non recurring basis, gains (losses)	$ (2,287)	14	$ (2,287)	(43)
Fair Value, Measurements, Nonrecurring [Member] | Foreclosed Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets measured on non recurring basis, gains (losses)		$ (80)		$ (80)

XML

Deposits - Summary of Deposit Balances, by Type (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Demand deposits	$ 351,236	$ 285,990
NOW deposits	294,989	294,840
Money market deposits	907,933	942,542
Regular savings and other deposits	286,311	272,611
Total non-certificate accounts	1,840,469	1,795,983
Term certificates less than $100,000	298,272	280,393
Term certificates $100,000 and greater	412,425	427,559
Total term certificates	710,697	707,952
Total deposits	$ 2,551,166	$ 2,503,935

XML

Earnings Per Share - Additional Information (Detail)			3 Months Ended		6 Months Ended
	Jul. 28, 2014	Mar. 06, 2014	Jun. 30, 2015 shares	Jun. 30, 2014 shares	Jun. 30, 2015 shares	Jun. 30, 2014 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock split, conversion ratio	2.4484	2.4484			2.4484	2.4484
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Options			37,789	0	39,547	0

XML

Securities Available for Sale - Amortized Cost and Fair Values of Securities Available for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	$ 98,864	$ 123,937
Debt Securities, Gross Unrealized Gains	1,028	1,566
Debt Securities, Gross Unrealized Losses	(139)	(452)
Debt Securities, Fair Value	99,753	125,051
Marketable Equity Securities, Amortized Cost	74,895	73,977
Marketable Equity Securities, Gross Unrealized Gains	4,392	6,970
Marketable Equity Securities, Gross Unrealized Losses	(3,869)	(2,477)
Marketable Equity Securities, Fair Value	75,418	78,470
Total Securities Available for Sale, Amortized Cost	173,759	197,914
Total Securities Available for Sale, Gross Unrealized Gains	5,420	8,536
Total Securities Available for Sale, Gross Unrealized Losses	(4,008)	(2,929)
Total Securities Available for Sale, Fair Value	175,171	203,521
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	33,385	48,793
Debt Securities, Gross Unrealized Gains	288	700
Debt Securities, Gross Unrealized Losses	(27)	(38)
Debt Securities, Fair Value	33,646	49,455
Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	26,043	34,548
Debt Securities, Gross Unrealized Gains	7	9
Debt Securities, Gross Unrealized Losses	(110)	(357)
Debt Securities, Fair Value	25,940	34,200
Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	7,924	8,754
Debt Securities, Gross Unrealized Gains	530	589
Debt Securities, Gross Unrealized Losses	(2)	(3)
Debt Securities, Fair Value	8,452	9,340
Residential Mortgage-backed Securities, Private Label [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	1,290	1,410
Debt Securities, Gross Unrealized Gains	51	86
Debt Securities, Fair Value	1,341	1,496
Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	63,765	52,917
Marketable Equity Securities, Gross Unrealized Gains	4,392	6,970
Marketable Equity Securities, Gross Unrealized Losses	(3,829)	(2,442)
Marketable Equity Securities, Fair Value	64,328	57,445
US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	24,994	24,991
Debt Securities, Gross Unrealized Gains	22
Debt Securities, Gross Unrealized Losses		(54)
Debt Securities, Fair Value	25,016	24,937
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	5,228	5,441
Debt Securities, Gross Unrealized Gains	130	182
Debt Securities, Fair Value	5,358	5,623
Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	11,130	21,060
Marketable Equity Securities, Gross Unrealized Losses	(40)	(35)
Marketable Equity Securities, Fair Value	11,090	21,025
Financial Services [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	28,388	37,852
Debt Securities, Gross Unrealized Gains	236	533
Debt Securities, Gross Unrealized Losses	(27)	(38)
Debt Securities, Fair Value	28,597	38,347
Financial Services [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	10,983	10,849
Marketable Equity Securities, Gross Unrealized Gains	740	1,225
Marketable Equity Securities, Gross Unrealized Losses	(162)	(51)
Marketable Equity Securities, Fair Value	11,561	12,023
Industry and Manufacturing [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	3,996	5,935
Debt Securities, Gross Unrealized Gains	47	121
Debt Securities, Fair Value	4,043	6,056
Industry and Manufacturing [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	20,326	16,894
Marketable Equity Securities, Gross Unrealized Gains	653	822
Marketable Equity Securities, Gross Unrealized Losses	(2,579)	(1,658)
Marketable Equity Securities, Fair Value	18,400	16,058
Healthcare [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total		4,001
Debt Securities, Gross Unrealized Gains		27
Debt Securities, Fair Value		4,028
Healthcare [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	6,871	5,220
Marketable Equity Securities, Gross Unrealized Gains	1,011	1,551
Marketable Equity Securities, Gross Unrealized Losses	(10)
Marketable Equity Securities, Fair Value	7,872	6,771
Other Sectors [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total	1,001	1,005
Debt Securities, Gross Unrealized Gains	5	19
Debt Securities, Fair Value	1,006	1,024
Other Sectors [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	3,441	3,441
Marketable Equity Securities, Gross Unrealized Gains	1,301	1,826
Marketable Equity Securities, Gross Unrealized Losses	(3)
Marketable Equity Securities, Fair Value	4,739	5,267
Consumer Products and Services [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	17,815	13,992
Marketable Equity Securities, Gross Unrealized Gains	596	1,467
Marketable Equity Securities, Gross Unrealized Losses	(743)	(549)
Marketable Equity Securities, Fair Value	17,668	14,910
Technology [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable Equity Securities, Amortized Cost	4,329	2,521
Marketable Equity Securities, Gross Unrealized Gains	91	79
Marketable Equity Securities, Gross Unrealized Losses	(332)	(184)
Marketable Equity Securities, Fair Value	$ 4,088	$ 2,416

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Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Unearned Compensation - ESOP [Member]	Unearned Compensation - Restricted Shares [Member]
Beginning Balance at Dec. 31, 2013		$ 249,205		$ 99,553	$ 162,388	$ 4,104	$ (9,919)	$ (5,796)	$ (1,125)
Beginning balance, shares at Dec. 31, 2013	[1]		54,406,335
Comprehensive income		11,656			10,275	1,381
ESOP shares earned		514		307				207
Share-based compensation expense, net of awards surrendered		434		232					202
Share-based compensation expense, net of awards surrendered, shares	[1]		(1,861)
Excess tax benefits in connection with share-based compensation		77		77
Stock options exercised		49		(101)			150
Stock options exercised, shares	[1]		27,471
Ending Balance at Jun. 30, 2014		261,935		100,068	172,663	5,485	$ (9,769)	(5,589)	(923)
Ending balance, shares at Jun. 30, 2014	[1]		54,431,945
Beginning Balance at Dec. 31, 2014		577,710	$ 547	411,476	184,715	2,898		(21,164)	(762)
Beginning balance, shares at Dec. 31, 2014	[1]		54,708,066
Comprehensive income		9,456			11,990	(2,534)
ESOP shares earned		765		324				441
Share-based compensation expense, net of awards surrendered		288	$ 1	191					96
Share-based compensation expense, net of awards surrendered, shares	[1]		87,210
Excess tax benefits in connection with share-based compensation		255		255
Stock options exercised		123	$ 2	121
Stock options exercised, shares	[1]		170,279
Ending Balance at Jun. 30, 2015		$ 588,597	$ 550	$ 412,367	$ 196,705	$ 364		$ (20,723)	$ (666)
Ending balance, shares at Jun. 30, 2015	[1]		54,965,555

[1] Share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

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Securities Available for Sale - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) SecurityLoan Security	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) SecurityLoan Security shares	Jun. 30, 2014 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales of securities available for sale	$ 14,400,000	$ 7,200,000	$ 19,095,000	$ 14,814,000
Gross gains	1,600,000	1,500,000	2,800,000	3,100,000
Gross losses	$ 158,000	$ 0	323,000	$ 0
Net unrealized gain on total debt securities portfolio			$ 889,000
Number of debt securities | SecurityLoan	19		19
Unrealized losses with debt aggregate depreciation, percentage	0.70%		0.70%
Net unrealized gain on the total marketable equity securities portfolio			$ 523,000
Number of marketable equity securities | Security	54		54
Unrealized losses with equity aggregate depreciation, percentage	11.90%		11.90%
Credit issues identified | Security			0
Declined percentage of equity securities unrealized losses	10.00%		10.00%
Other-than-temporarily impaired securities | shares			0
Unrealized losses on marketable equity securities, declined percentage			25.00%
Federal Reserve Bank Discount Window Borrowings [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities with amortized cost, pledged as collateral	$ 1,100,000		$ 1,100,000
Federal Home Loan Bank of Boston Borrowings [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities with amortized cost, pledged as collateral	$ 17,500,000		$ 17,500,000

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Loans - Past Due and Non Accrual (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	$ 30,805	$ 24,551
Loans on Non-accrual	36,962	31,509
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	1,436	937
Loans on Non-accrual	892	855
One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	5,230	8,571
Loans on Non-accrual	11,094	14,649
Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	1,663	1,868
Loans on Non-accrual	1,930	2,277
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	4,988	4,777
Loans on Non-accrual	5,271	5,311
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	16,606	7,350
Loans on Non-accrual	17,775	8,417
Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	28,487	22,566
Loans on Non-accrual	36,070	30,654
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	882	1,048
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	4,592	5,952
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	544	5
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	2,616	4,386
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	956	1,040
Financing Receivables, 30 to 59 Days Past Due [Member] | Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	3,572	5,426
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	476	521
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	1,235	3,569
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due		99
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	780	1,129
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	49	75
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due		1,739
Financing Receivables, 60 to 89 Days Past Due [Member] | Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	829	2,943
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	406	527
Financing Receivables, 90 Days or Greater Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	24,978	15,030
Financing Receivables, 90 Days or Greater Past Due [Member] | Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	892	833
Financing Receivables, 90 Days or Greater Past Due [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	1,834	3,056
Financing Receivables, 90 Days or Greater Past Due [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	658	753
Financing Receivables, 90 Days or Greater Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	4,988	3,038
Financing Receivables, 90 Days or Greater Past Due [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	16,606	7,350
Financing Receivables, 90 Days or Greater Past Due [Member] | Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	$ 24,086	$ 14,197

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Fair Values of Assets and Liabilities - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 99,753	$ 125,051
Total assets	75,418	78,470
Total assets	176,322	204,623
Total liabilities	886	1,001
Derivative Loan Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative loan commitments	124	159
Derivative loan commitments	87	36
Forward Loan Sale Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative loan commitments	247	11
Total assets	247	11
Derivative loan commitments	19	33
Total liabilities	19	33
Loan Level Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	780	932
Total liabilities	780	932
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	75,418	78,470
Total assets	75,418	78,470
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	99,753	125,051
Total assets	99,753	125,051
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,151	1,102
Total liabilities	886	1,001
Fair Value, Inputs, Level 3 [Member] | Derivative Loan Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative loan commitments	124	159
Derivative loan commitments	87	36
Fair Value, Inputs, Level 3 [Member] | Forward Loan Sale Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative loan commitments	247	11
Total assets	247	11
Derivative loan commitments	19	33
Total liabilities	19	33
Fair Value, Inputs, Level 3 [Member] | Loan Level Interest Rate Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	780	932
Total liabilities	$ 780	$ 932

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 176,654	$ 205,732
Certificates of deposit	95,000	85,000
Securities available for sale, at fair value	175,171	203,521
Federal Home Loan Bank stock, at cost	12,725	12,725
Loans held for sale	5,154	971
Loans, net of fees and costs	2,744,825	2,677,376
Less: allowance for loan losses	(30,109)	(28,469)
Loans, net	2,714,716	2,648,907
Bank-owned life insurance	39,201	38,611
Foreclosed real estate, net	1,046	1,046
Premises and equipment, net	38,700	38,512
Accrued interest receivable	8,054	7,748
Deferred tax asset, net	17,368	15,610
Goodwill	13,687	13,687
Other assets	4,785	6,456
Total assets	3,302,261	3,278,526
Deposits:
Non interest-bearing	351,236	285,990
Interest-bearing	2,199,930	2,217,945
Total deposits	2,551,166	2,503,935
Long-term debt	140,817	171,899
Accrued expenses and other liabilities	21,681	24,982
Total liabilities	$ 2,713,664	$ 2,700,816
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued
Common stock, $0.01 par value, 100,000,000 shares authorized; 54,965,555 and 54,708,066 shares issued at June 30, 2015 and December 31, 2014, respectively	$ 550	$ 547
Additional paid-in capital	412,367	411,476
Retained earnings	196,705	184,715
Accumulated other comprehensive income	364	2,898
Unearned compensation - ESOP, 2,861,446 and 2,922,328 shares at June 30, 2015 and December 31, 2014, respectively	(20,723)	(21,164)
Unearned compensation - restricted shares, 193,595 and 138,838 shares at June 30, 2015 and December 31, 2014, respectively	(666)	(762)
Total stockholders' equity	588,597	577,710
Total liabilities and stockholders' equity	$ 3,302,261	$ 3,278,526

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Deposits - Summary of Term Certificates, by Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Within 1 year, Amount	$ 463,515	$ 493,676
Over 1 year to 2 years, Amount	161,177	131,099
Over 2 years to 3 years, Amount	41,340	42,237
Over 3 years to 4 years, Amount	22,931	18,202
Over 4 years to 5 years, Amount	18,462	19,539
Greater than 5 years, Amount	3,272	3,199
Total term certificates	$ 710,697	$ 707,952
Within 1 year, Weighted Average Rate	1.04%	1.05%
Over 1 year to 2 years, Weighted Average Rate	1.24%	1.31%
Over 2 year to 3 years, Weighted Average Rate	1.16%	1.39%
Over 3 year to 4 years, Weighted Average Rate	1.45%	1.47%
Over 4 years to 5 years, Weighted Average Rate	1.48%	1.50%
Greater than 5 Years, Weighted Average Rate	5.50%	5.50%
Weighted average rate on term certificates	1.13%	1.16%

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014		Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income		$ 5,585	$ 5,504	[1]	$ 11,990	$ 10,275	[1]
Securities available for sale:
Unrealized holding gain (loss) on securities available for sale		(790)	3,719		(1,751)	5,285
Reclassification adjustment for gains realized in income	[2]	(1,424)	(1,505)		(2,444)	(3,065)
Net unrealized gain (loss)		(2,214)	2,214		(4,195)	2,220
Tax effect		871	(858)		1,661	(839)
Total other comprehensive income (loss)		(1,343)	1,356		(2,534)	1,381
Comprehensive income		$ 4,242	$ 6,860		$ 9,456	$ 11,656

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

[2] Amounts are included in gain on sales of securities, net, in the Consolidated Statements of Net Income. The provision for income taxes associated with the reclassification adjustments for the three months ended June 30, 2015 and 2014 was $560,000 and $583,000 and for the six months ended June 30, 2015 and 2014 was $968,000 and $1.2 million, respectively.

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Loans - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015 USD ($) SecurityLoan	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) SecurityLoan	Jan. 31, 2010 USD ($)
Receivables [Abstract]
Foreign loans outstanding	$ 0
Servicing loans for participants	$ 112,100,000		$ 88,100,000
Company acquired loans with fair value				$ 345,300,000
Loans for deterioration of credit quality				27,700,000
Nonaccretable discount				$ 7,600,000
Number of accruing loans | SecurityLoan	0		0
Loans acquired with evidence of credit deterioration	$ 972,000		$ 485,000
Non accrual loans acquired with evidence of credit deterioration	290,000		$ 994,000
Additional funds advanced in connection with impaired construction loans	$ 29,000
Loans modified as TDRs on non-accrual status, minimum period	6 months
Loans modified as TDRs qualify for return to accrual status if demonstrated performance with modified terms of loan agreement, minimum period	6 months
TDRs defaulted within 12 months of restructure	$ 0	$ 0

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Securities Available for Sale (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Values of Securities Available for Sale

The amortized cost and fair values of securities available for sale, with gross unrealized gains and losses, follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds:
Financial services	$	28,388	$	236	$	(27	)	$	28,597
Industry and manufacturing		3,996		47		—			4,043
Other		1,001		5		—			1,006
Total corporate bonds		33,385		288		(27	)		33,646
Government-sponsored enterprises		26,043		7		(110	)		25,940
U.S. treasury securities		24,994		22		—			25,016
Municipal bonds		5,228		130		—			5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		7,924		530		(2	)		8,452
Private label		1,290		51		—			1,341
Total debt securities		98,864		1,028		(139	)		99,753
Marketable equity securities:
Common stocks:
Financial services		10,983		740		(162	)		11,561
Industry and manufacturing		20,326		653		(2,579	)		18,400
Consumer products and services		17,815		596		(743	)		17,668
Technology		4,329		91		(332	)		4,088
Healthcare		6,871		1,011		(10	)		7,872
Other		3,441		1,301		(3	)		4,739
Total common stocks		63,765		4,392		(3,829	)		64,328
Money market mutual funds		11,130		—		(40	)		11,090
Total marketable equity securities		74,895		4,392		(3,869	)		75,418
Total securities available for sale	$	173,759	$	5,420	$	(4,008	)	$	175,171
December 31, 2014
Debt securities:
Corporate bonds:
Financial services	$	37,852	$	533	$	(38	)	$	38,347
Industry and manufacturing		5,935		121		—			6,056
Healthcare		4,001		27		—			4,028
Other		1,005		19		—			1,024
Total corporate bonds		48,793		700		(38	)		49,455
Government-sponsored enterprises		34,548		9		(357	)		34,200
U.S. treasury securities		24,991		—		(54	)		24,937
Municipal bonds		5,441		182		—			5,623
Residential mortgage-backed securities:
Government-sponsored enterprises		8,754		589		(3	)		9,340
Private label		1,410		86		—			1,496
Total debt securities		123,937		1,566		(452	)		125,051
Marketable equity securities:
Common stocks:
Financial services		10,849		1,225		(51	)		12,023
Industry and manufacturing		16,894		822		(1,658	)		16,058
Consumer products and services		13,992		1,467		(549	)		14,910
Technology		2,521		79		(184	)		2,416
Healthcare		5,220		1,551		—			6,771
Other		3,441		1,826		—			5,267
Total common stocks		52,917		6,970		(2,442	)		57,445
Money market mutual funds		21,060		—		(35	)		21,025
Total marketable equity securities		73,977		6,970		(2,477	)		78,470
Total securities available for sale	$	197,914	$	8,536	$	(2,929	)	$	203,521

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2015 are as follows. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

					After One Year
	One Year or Less				Through Five Years				After Five Years				Total
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
	(In thousands)
Corporate bonds:
Financial services	$	10,989	$	11,083	$	17,399	$	17,514	$	—	$	—	$	28,388	$	28,597
Industry and manufacturing		2,996		3,028		1,000		1,015		—		—		3,996		4,043
Other		1,001		1,006		—		—		—		—		1,001		1,006
Total corporate bonds		14,986		15,117		18,399		18,529		—		—		33,385		33,646
Government-sponsored enterprises		43		43		22,000		21,951		4,000		3,946		26,043		25,940
U.S. treasury securities		—		—		24,994		25,016		—		—		24,994		25,016
Municipal bonds		801		808		4,427		4,550		—		—		5,228		5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		—		—		7,924		8,452		7,924		8,452
Private label		—		—		—		—		1,290		1,341		1,290		1,341
Total	$	15,830	$	15,968	$	69,820	$	70,046	$	13,214	$	13,739	$	98,864	$	99,753

Schedule of Information Pertaining to Securities Available for Sale

Information pertaining to securities available for sale as of June 30, 2015 and December 31, 2014, with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds - financial services	$	2	$	1,998	$	25	$	1,476
Government-sponsored enterprises		19		7,981		91		8,910
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		2		220
Total debt securities		21		9,979		118		10,606
Marketable equity securities:
Common stocks:
Financial services		162		2,535		—		—
Industry and manufacturing		2,579		12,299		—		—
Consumer products and services		423		7,448		320		1,816
Technology		332		2,160		—		—
Healthcare		10		818		—		—
Other		3		464		—		—
Total common stocks		3,509		25,724		320		1,816
Money market mutual funds		—		—		40		1,020
Total marketable equity securities		3,509		25,724		360		2,836
Total temporarily impaired securities	$	3,530	$	35,703	$	478	$	13,442

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
December 31, 2014
Debt securities:
Corporate bonds-financial services	$	5	$	1,994	$	33	$	1,467
Government-sponsored enterprises		10		4,491		347		24,653
U.S. treasury securities		54		24,937		—		—
Residential mortgage-backed securities:
Government-sponsored enterprises		3		225		—		—
Total debt securities		72		31,647		380		26,120
Marketable equity securities:
Common stocks:
Financial services		51		1,855		—		—
Industry and manufacturing		1,658		8,046		—		—
Consumer products and services		549		3,864		—		—
Technology		184		1,855		—		—
Total common stocks		2,442		15,620		—		—
Money market mutual funds		—		—		35		1,018
Total marketable equity securities		2,442		15,620		35		1,018
Total temporarily impaired securities	$	2,514	$	47,267	$	415	$	27,138

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Loans - Summary of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 2,747,640		$ 2,679,711
Total loans, Percent	100.00%		100.00%
Allowance for loan losses	$ (30,109)	$ (28,601)	$ (28,469)	$ (26,131)	$ (25,440)	$ (25,335)
Net deferred loan origination fees	(2,815)		(2,335)
Loans, net	2,714,716		2,648,907
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 354,696		$ 330,813
Total loans, Percent	12.90%		12.30%
Allowance for loan losses	$ (5,185)	(4,853)	$ (4,633)	(4,185)	(3,928)	(3,433)
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 335,939		$ 265,980
Total loans, Percent	12.20%		9.90%
Allowance for loan losses	$ (6,811)	(5,356)	$ (5,155)	(4,512)	(4,149)	(4,374)
Total Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 2,383,380		$ 2,340,126
Total loans, Percent	86.70%		87.40%
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 1,134,686		$ 1,145,820
Total loans, Percent	41.30%		42.80%
Allowance for loan losses	$ (12,816)	(12,942)	$ (13,000)	(11,981)	(11,924)	(12,831)
Residential Portfolio Segment [Member] | Multi-Family Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 401,584		$ 409,675
Total loans, Percent	14.60%		15.30%
Allowance for loan losses	$ (3,522)	(3,608)	$ (3,635)	(3,346)	(3,276)	(2,419)
Residential Portfolio Segment [Member] | One-to Four-Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 462,897		$ 468,560
Total loans, Percent	16.80%		17.50%
Allowance for loan losses	$ (1,517)	(1,663)	$ (1,849)	(1,913)	(1,960)	(1,991)
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 48,274		$ 50,091
Total loans, Percent	1.80%		1.90%
Allowance for loan losses	$ (152)	(95)	$ (100)	(105)	(105)	(155)
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans, Amount	$ 9,564		$ 8,772
Total loans, Percent	0.40%		0.30%
Allowance for loan losses	$ (106)	$ (84)	$ (97)	$ (89)	$ (98)	$ (132)

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Deposits (Tables)

6 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

Summary of Deposit Balances, by Type

A summary of deposit balances, by type, follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Demand deposits	$	351,236	$	285,990
NOW deposits		294,989		294,840
Money market deposits		907,933		942,542
Regular savings and other deposits		286,311		272,611
Total non-certificate accounts		1,840,469		1,795,983
Term certificates less than $100,000		298,272		280,393
Term certificates $100,000 and greater		412,425		427,559
Total term certificates		710,697		707,952
Total deposits	$	2,551,166	$	2,503,935

Summary of Term Certificates, by Maturity

A summary of term certificates, by maturity, follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Within 1 year	$	463,515		1.04	%	$	493,676		1.05	%
Over 1 year to 2 years		161,177		1.24			131,099		1.31
Over 2 years to 3 years		41,340		1.16			42,237		1.39
Over 3 years to 4 years		22,931		1.45			18,202		1.47
Over 4 years to 5 years		18,462		1.48			19,539		1.50
Greater than 5 years		3,272		5.50			3,199		5.50
	$	710,697		1.13	%	$	707,952		1.16	%

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Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Income taxes associated with reclassification adjustments	$ 560,000	$ 583,000	$ 968,000	$ 1,200,000

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	54,965,555	54,708,066
Unearned compensation, ESOP	2,861,446	2,922,328
Unearned compensation, restricted shares	193,595	138,838

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Borrowings

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Borrowings

7. BORROWINGS

Long-term debt consists of FHLB advances as follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
2015	$	10,000		1.83	%	$	39,500		1.20	%
2016		41,500		1.20			41,500		1.20
2017		74,632		1.38			74,632		1.38
2018		—		—			—		—
2019		7,571		1.23			8,454		1.23
2020		7,114		1.22			7,813		1.22
	$	140,817		1.34	%	$	171,899		1.28	%

At June 30, 2015, advances amounting to $6.5 million are callable by the FHLB prior to maturity.

As of June 30, 2015, the Company also has an available line of credit of $9.4 million with the FHLB at an interest rate that adjusts daily. No amounts were drawn on the line of credit as of June 30, 2015 or December 31, 2014. All borrowings from the FHLB are secured by investment securities (see Note 4) and qualified collateral, consisting of a blanket lien on one- to four-family loans and certain multi-family and commercial real estate loans held in the Bank’s portfolio. At June 30, 2015, the Company pledged multi-family and commercial real estate loans with carrying values totaling $60.4 million and $184.0 million, respectively.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	EBSB
Entity Registrant Name	Meridian Bancorp, Inc.
Entity Central Index Key	0001600125
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		54,968,757

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Commitments and Derivatives

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Derivatives

8. COMMITMENTS AND DERIVATIVES

In the normal course of business, there are outstanding commitments which are not reflected in the accompanying consolidated financial statements.

Loan Commitments

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

A summary of outstanding financial instruments whose contract amounts represent credit risk is as follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Unadvanced portion of existing loans:
Construction	$	405,472	$	315,206
Home equity line of credit		33,358		32,861
Other lines and letters of credit		120,585		119,352
Commitments to originate:
One- to four-family		14,599		20,641
Commercial real estate		186,079		46,260
Construction		180,128		116,215
Commercial and industrial		41,335		19,013
Other loans		1,343		785
Total loan commitments outstanding	$	982,899	$	670,333

Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments are expected to expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case by case basis. The amount of collateral obtained, if deemed necessary by the Company for the extension of credit, is based upon management’s credit evaluation of the borrower. Collateral held includes, but is not limited to, residential real estate and deposit accounts.

Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized if deemed necessary and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Interest Rate Swaps

The Company is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that the Company enters into with commercial business customers to synthetically convert their loans from a variable rate to a fixed rate. The Company pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. Concurrently, the Company enters into an offsetting interest rate swap with a third-party financial institution. In the offsetting swap, the Company pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss of given default for all counterparties. At June 30, 2015 and December 31, 2014, the Company had $1.4 million and $950,000, respectively, in cash pledged for collateral on its interest rate swap with the third-party financial institution.

Summary information regarding these derivatives is presented below:

				June 30, 2015					December 31, 2014
	Maturity	Interest Rate Paid	Interest Rate Received	Notional Amount		Fair Value			Notional Amount		Fair Value
		(Dollars in thousands)
Customer interest rate swap	10/17/33	1 Mo. Libor + 175bp	Fixed (4.1052%)	$	11,175	$	780		$	11,245	$	932
Third-party interest rate swap	10/17/33	Fixed (4.1052%)	1 Mo. Libor + 175bp		11,175		(780	)		11,245		(932	)

Derivative Loan Commitments

Residential real estate loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential real estate loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. A residential loan commitment requires the Company to originate a loan at a specific interest rate upon the completion of various underwriting requirements. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from the exercise of the loan commitment might decline from the inception of the rate lock to funding of the loan due to increases in loan interest rates. If interest rates increase, the value of these commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. Derivative loan commitments with a notional amount of $11.5 million and $12.2 million were outstanding at June 30, 2015 and December 31, 2014, respectively. The fair value of such commitments was a net asset of $37,000 and $123,000 at June 30, 2015 and December 31, 2014, respectively.

Forward Loan Sale Commitments

To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Under a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay the investor a “pair-off” fee, based on then-current market prices, to compensate the investor for the shortfall. Under a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor and the investor commits to a price that it will purchase the loan from the Company if the loan to the underlying borrower closes. The Company generally enters into forward sale contracts on the same day it commits to lend funds to a potential borrower. The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Forward loan sale commitments with a notional amount of $16.5 million and $12.2 million were outstanding at June 30, 2015 and December 31, 2014, respectively. The fair value of such commitments was a net asset of $228,000 at June 30, 2015 and a net liability of $22,000 at December 31, 2014.

The following table presents the fair values of derivative instruments in the consolidated balance sheets.

	Assets			Liabilities
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
June 30, 2015
Derivative loan commitments	Other assets	$	124	Other liabilities	$	87
Forward loan sale commitments	Other assets		247	Other liabilities		19
Loan level interest rate swaps	Other assets		780	Other liabilities		780
Total		$	1,151		$	886
December 31, 2014
Derivative loan commitments	Other assets	$	159	Other liabilities	$	36
Forward loan sale commitments	Other assets		11	Other liabilities		33
Loan level interest rate swaps	Other assets		932	Other liabilities		932
Total		$	1,102		$	1,001

The following table presents information pertaining to gains (losses) on the Company’s derivative instruments included in the consolidated statements of net income.

		Three Months Ended June 30,						Six Months Ended June 30,
Derivative Instrument	Location of Gain (Loss)	2015			2014			2015			2014
					(In thousands)
Derivative loan commitments	Mortgage banking gains, net	$	(35	)	$	103		$	(86	)	$	141
Forward loan sale commitments	Mortgage banking gains, net		204			(73	)		250			(109	)
Total		$	169		$	30		$	164		$	32

For the three months ended June 30, 2015, the Company recognized net mortgage banking gains of $268,000, consisting of $99,000 in net gains on sale of loans and $169,000 in net derivative mortgage banking gains. The Company recognized net mortgage banking gains of $267,000, consisting of $237,000 in net gains on sale of loans and $30,000 in net derivative mortgage banking gains for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company recognized net mortgage banking gains of $378,000, consisting of $214,000 in net gains on sale of loans and $164,000 in net derivative mortgage banking gains. The company recognized net mortgage banking gains of $387,000, consisting of $355,000 in net gains on sale of loans and $32,000 in net derivative mortgage banking gains for the six months ended June 30, 2014.

Other Commitments

The Company has a contract with its core data processing provider through December 2017 with an outstanding commitment of $5.6 million as of June 30, 2015, with total annual payments of $2.2 million.

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Consolidated Statements of Net Income - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	[1]	Jun. 30, 2015	Jun. 30, 2014	[1]
Interest and dividend income:
Interest and fees on loans	$ 28,546	$ 25,112		$ 56,878	$ 49,547
Interest on debt securities:
Taxable	434	630		945	1,375
Tax-exempt	41	44		83	89
Dividends on equity securities	421	377		808	690
Interest on certificates of deposit	157			293
Other interest and dividend income	188	138		358	228
Total interest and dividend income	29,787	26,301		59,365	51,929
Interest expense:
Interest on deposits	4,359	4,407		9,036	8,812
Interest on borrowings	482	655		990	1,276
Total interest expense	4,841	5,062		10,026	10,088
Net interest income	24,946	21,239		49,339	41,841
Provision for loan losses	3,651	696		3,711	829
Net interest income, after provision for loan losses	21,295	20,543		45,628	41,012
Non-interest income:
Customer service fees	2,003	1,860		3,760	3,659
Loan fees	230	106		396	319
Mortgage banking gains, net	268	267		378	387
Gain on sales of securities, net	1,424	1,505		2,444	3,065
Income from bank-owned life insurance	294	293		590	574
Other income		6		1	17
Total non-interest income	4,219	4,037		7,569	8,021
Non-interest expenses:
Salaries and employee benefits	10,717	10,017		21,884	20,818
Occupancy and equipment	2,368	2,216		4,988	4,777
Data processing	1,249	909		2,512	2,070
Marketing and advertising	895	688		1,789	1,495
Professional services	664	659		1,337	1,300
Foreclosed real estate	15	199		29	210
Deposit insurance	479	531		940	1,082
Other general and administrative	960	1,062		1,936	1,950
Total non-interest expenses	17,347	16,281		35,415	33,702
Income before income taxes	8,167	8,299		17,782	15,331
Provision for income taxes	2,582	2,795		5,792	5,056
Net income	$ 5,585	$ 5,504		$ 11,990	$ 10,275
Earnings per share:
Basic	$ 0.11	$ 0.10		$ 0.23	$ 0.19
Diluted	$ 0.11	$ 0.10		$ 0.23	$ 0.19
Weighted average shares:
Basic	52,074,889	53,047,448		51,969,106	53,029,783
Diluted	53,166,560	54,125,765		53,085,679	54,097,780

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

2. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This update is intended to reduce diversity in the application of guidance by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. Amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of this ASU was to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.

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Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

Meridian Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated on March 6, 2014 to be the successor to Meridian Interstate Bancorp, Inc. (“Old Meridian”) upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Meridian Financial Services, Incorporated (the “MHC”), the top tier mutual holding company of Old Meridian. Old Meridian was the former mid-tier holding company for East Boston Savings Bank (the “Bank”). Prior to completion of the Conversion, approximately 59% of the outstanding shares of common stock of Old Meridian were owned by the MHC. In conjunction with the Conversion, the MHC and Meridian Interstate Funding Corporation were merged into Old Meridian (and ceased to exist), and Old Meridian merged into the Company and the Company became its successor under the name Meridian Bancorp, Inc. The Conversion was completed July 28, 2014. The Company raised gross proceeds of $325.0 million by selling a total of 32,500,000 shares of common stock at $10.00 per share in the second-step stock offering. The Company utilized $16.3 million of the proceeds to fund an addition to its Employee Stock Ownership Plan (“ESOP”) loan for the acquisition by the ESOP of an additional 1,625,000 shares at $10.00 per share representing 5% of the shares issued in the second-step offering and incurred expenses in connection with the offer and sale of the common stock totaling $6.5 million, resulting in net cash proceeds to the Company of $302.3 million. The Company invested $159.3 million of the net proceeds it received from the sale into the Bank’s operations and retained the remaining amount for general corporate purposes. Concurrent with the completion of the stock offering, each share of Old Meridian common stock owned by public stockholders (stockholders other than the MHC) was exchanged for 2.4484 shares of Company common stock. A total of 22,200,316 shares of Company common stock were issued in the exchange. The Conversion was accounted for as a capital raising transaction by entities under common control. The historical financial results of the MHC are immaterial to the results of the Company and therefore the net assets of the MHC have been reflected as an increase to stockholders’ equity at the time of the offering.

As a result of the Conversion, all share and per share information has been revised to reflect the 2.4484-to-one exchange ratio. Such revised financial information presented in this Form 10-Q is derived from the consolidated financial statements of Old Meridian and its subsidiaries.

The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. The Company owns the Bank. The Bank’s subsidiaries include Prospect, Inc., which engages in securities transactions on its own behalf, EBOSCO, LLC and Berkeley Riverbend Estates LLC, both of which hold foreclosed real estate, and East Boston Investment Services, Inc., which is authorized for third-party investment sales and is currently inactive. All significant intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by such generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Such adjustments were of a normal recurring nature. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the entire year or any other interim period. For additional information, refer to the financial statements and footnotes thereto of the Company included in the Company’s Form 10-K for the year ended December 31, 2014 which was filed with the Securities and Exchange Commission (“SEC”) on March 13, 2015, and is available through the SEC’s website at www.sec.gov.

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the evaluation of goodwill for impairment, other-than-temporary impairment of securities and the valuation of deferred tax assets.

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Loans (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Summary of Loans

A summary of loans follows:

	June 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	462,897			16.8	%	$	468,560			17.5	%
Multi-family		401,584			14.6			409,675			15.3
Home equity lines of credit		48,274			1.8			50,091			1.9
Commercial real estate		1,134,686			41.3			1,145,820			42.8
Construction		335,939			12.2			265,980			9.9
Total real estate loans		2,383,380			86.7			2,340,126			87.4
Commercial and industrial		354,696			12.9			330,813			12.3
Consumer		9,564			0.4			8,772			0.3
Total loans		2,747,640			100.0	%		2,679,711			100.0	%
Allowance for loan losses		(30,109	)					(28,469	)
Net deferred loan origination fees		(2,815	)					(2,335	)
Loans, net	$	2,714,716					$	2,648,907

Outstanding Balance of Acquired Loans

The following is a summary of the outstanding balance of the acquired loans with evidence of credit deterioration:

	June 30,			December 31,
	2015			2014
	(In thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	5,479		$	5,776
Multi-family		608			625
Home equity lines of credit		426			505
Commercial real estate		369			447
Outstanding principal balance		6,882			7,353
Discount		(1,552	)		(1,787	)
Carrying amount	$	5,330		$	5,566

Accretable Discount Included with Outstanding Loan Balances

A rollforward of the accretable discount, included with the outstanding loan balances, follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Beginning balance	$	776		$	1,170		$	919		$	1,181
Accretion		(14	)		(16	)		(28	)		(27	)
Disposals		(78	)		—			(207	)		—
Ending balance	$	684		$	1,154		$	684		$	1,154

Allowance for Loan Losses

An analysis of the allowance for loan losses and related information follows:

	For the Three Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,663		$	3,608		$	95		$	12,942		$	5,356		$	4,853		$	84		$	28,601
Provision (credit) for loan losses		(139	)		(86	)		57			(144	)		3,576			331			56			3,651
Charge-offs		(7	)		—			—			—			(2,287	)		—			(57	)		(2,351	)
Recoveries		—			—			—			18			166			1			23			208
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Three Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,960		$	3,276		$	105		$	11,924		$	4,149		$	3,928		$	98		$	25,440
Provision (credit) for loan losses		(52	)		70			5			57			353			254			9			696
Charge-offs		—			—			(5	)		—			—			—			(36	)		(41	)
Recoveries		5			—			—			—			10			3			18			36
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131
	For the Six Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,849		$	3,635		$	100		$	13,000		$	5,155		$	4,633		$	97		$	28,469
Provision (credit) for loan losses		(180	)		(113	)		52			(202	)		3,485			584			85			3,711
Charge-offs		(160	)		—			—			—			(2,287	)		(33	)		(118	)		(2,598	)
Recoveries		8			—			—			18			458			1			42			527
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Six Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,991		$	2,419		$	155		$	12,831		$	4,374		$	3,433		$	132		$	25,335
Provision (credit) for loan losses		(68	)		927			(45	)		(838	)		117			746			(10	)		829
Charge-offs		(54	)		—			(5	)		(12	)		—			—			(86	)		(157	)
Recoveries		44			—			—			—			21			6			53			124
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131

	One- to four-family		Multi- family		Home of equity lines credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
June 30, 2015
Amount of allowance for loan losses for loans deemed to be impaired	$	3	$	164	$	—	$	28	$	—	$	3	$	—	$	198
Amount of allowance for loan losses for loans not deemed to be impaired		1,514		3,358		152		12,788		6,811		5,182		106		29,911
	$	1,517	$	3,522	$	152	$	12,816	$	6,811	$	5,185	$	106	$	30,109
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans deemed to be impaired	$	2,071	$	1,422	$	—	$	5,403	$	19,174	$	996	$	—	$	29,066
Loans not deemed to be impaired		460,826		400,162		48,274		1,129,283		316,765		353,700		9,564		2,718,574
	$	462,897	$	401,584	$	48,274	$	1,134,686	$	335,939	$	354,696	$	9,564	$	2,747,640
	One- to four-family		Multi- family		Home equity lines of credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
December 31, 2014
Amount of allowance for loan losses for loans deemed to be impaired	$	76	$	168	$	—	$	—	$	32	$	14	$	—	$	290
Amount of allowance for loan losses for loans not deemed to be impaired		1,773		3,467		100		13,000		5,123		4,619		97		28,179
	$	1,849	$	3,635	$	100	$	13,000	$	5,155	$	4,633	$	97	$	28,469
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Loans deemed to be impaired	$	4,415	$	1,443	$	20	$	15,398	$	9,818	$	984	$	—	$	32,078
Loans not deemed to be impaired		464,145		408,232		50,071		1,130,422		256,162		329,829		8,772		2,647,633
	$	468,560	$	409,675	$	50,091	$	1,145,820	$	265,980	$	330,813	$	8,772	$	2,679,711

Past Due and Non Accrual

The following table provides information about the Company’s past due and non-accrual loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
June 30, 2015
Real estate loans:
Residential real estate:
One- to four-family	$	2,616	$	780	$	1,834	$	5,230	$	11,094
Home equity lines of credit		956		49		658		1,663		1,930
Commercial real estate		—		—		4,988		4,988		5,271
Construction		—		—		16,606		16,606		17,775
Total real estate loans		3,572		829		24,086		28,487		36,070
Commercial and industrial		544		—		892		1,436		892
Consumer		476		406		—		882		—
Total	$	4,592	$	1,235	$	24,978	$	30,805	$	36,962

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
December 31, 2014
Real estate loans:
Residential real estate:
One- to four-family	$	4,386	$	1,129	$	3,056	$	8,571	$	14,649
Home equity lines of credit		1,040		75		753		1,868		2,277
Commercial real estate		—		1,739		3,038		4,777		5,311
Construction		—		—		7,350		7,350		8,417
Total real estate loans		5,426		2,943		14,197		22,566		30,654
Commercial and industrial		5		99		833		937		855
Consumer		521		527		—		1,048		—
Total	$	5,952	$	3,569	$	15,030	$	24,551	$	31,509

Impaired Loans of Company

The following tables provide information with respect to the Company’s impaired loans:

	June 30, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
Impaired loans without a valuation allowance:
One- to four-family	$	1,802	$	2,223			$	2,986	$	3,515
Multi-family		95		95				102		102
Home equity lines of credit		—		—				20		20
Commercial real estate		4,646		4,941				15,398		15,705
Construction		19,174		22,211				9,328		10,007
Commercial and industrial		988		1,320				936		1,320
Total		26,705		30,790				28,770		30,669
Impaired loans with a valuation allowance:
One- to four-family		269		269	$	3		1,429		1,429	$	76
Multi-family		1,327		1,327		164		1,341		1,341		168
Commercial real estate		757		757		28		—		—		—
Construction		—		—		—		490		490		32
Commercial and industrial		8		8		3		48		48		14
Total		2,361		2,361		198		3,308		3,308		290
Total impaired loans	$	29,066	$	33,151	$	198	$	32,078	$	33,977	$	290

	Three Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	2,282	$	35	$	34	$	4,033	$	50	$	55
Multi-family		1,426		14		14		5,319		77		53
Home equity lines of credit		—		—		—		20		—		—
Commercial real estate		5,558		33		33		9,546		126		77
Construction		22,304		60		60		13,876		235		69
Commercial and industrial		996		2		2		1,051		20		3
Total impaired loans	$	32,566	$	144	$	143	$	33,845	$	508	$	257

	Six Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	3,309	$	85	$	84	$	4,048	$	100	$	95
Multi-family		1,431		27		27		5,338		155		156
Home equity lines of credit		—		—		—		21		—		—
Commercial real estate		10,702		146		146		9,593		267		135
Construction		15,321		256		254		13,673		469		123
Commercial and industrial		973		5		5		1,060		39		8
Total impaired loans	$	31,736	$	519	$	516	$	33,733	$	1,030	$	517

Summary of Troubled Debt Restructurings

The following table summarizes the troubled debt restructurings (“TDRs”) at the dates indicated:

	June 30,		December 31,
	2015		2014
	(In thousands)
TDRs on accrual status:
One- to four-family	$	2,906	$	2,946
Multi-family		1,422		1,443
Home equity lines of credit		19		20
Commercial real estate		10,111		9,950
Construction		174		121
Commercial and industrial		142		—
Total TDRs on accrual status		14,774		14,480
TDRs on non-accrual status:
One- to four-family		1,347		1,469
Commercial real estate		450		283
Construction		2,301		6,496
Commercial and industrial		267		186
Total TDRs on non-accrual status		4,365		8,434
Total TDRs	$	19,139	$	22,914

Risk Rating

The following tables provide information with respect to the Company’s risk rating:

	June 30, 2015								December 31, 2014
	Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial		Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial
	(In thousands)
Loans rated 1 - 3A	$	390,867	$	1,123,746	$	314,956	$	328,916	$	399,113	$	1,135,540	$	238,505	$	322,013
Loans rated 4 - 4A		2,225		5,255		—		24,747		1,960		4,832		—		7,816
Loans rated 5		8,492		5,685		20,983		1,033		8,602		5,448		27,475		984
Loans rated 6		—		—		—		—		—		—		—		—
Loans rated 7		—		—		—		—		—		—		—		—
Total	$	401,584	$	1,134,686	$	335,939	$	354,696	$	409,675	$	1,145,820	$	265,980	$	330,813

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Fair Values of Assets and Liabilities

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

9. FAIR VALUES OF ASSETS AND LIABILITIES

Determination of Fair Value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of assets and liabilities is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

Cash and cash equivalents — The carrying amounts of cash and short-term instruments approximate fair values, based on the short-term nature of the assets.

Certificates of deposit — Fair values of certificates of deposit are estimated using discounted cash flow analyses based on current market rates for similar types of deposits.

Securities available for sale — All fair value measurements are obtained from a third party pricing service and are not adjusted by management. Marketable equity securities are measured at fair value utilizing quoted market prices (Level 1). Corporate bonds, obligations of government-sponsored enterprises, U.S. treasury securities, municipal bonds and mortgage-backed securities are determined by pricing models that consider standard input factors such as observable market data, benchmark yields, reported trades, broker/dealer quotes, credit spreads, benchmark securities, as well as new issue data, monthly payment information, and collateral performance, among others (Level 2).

Federal Home Loan Bank stock — The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank.

Loans held for sale — The fair value is based on commitments in effect from investors or prevailing market prices.

Loans — For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-accrual loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

Deposits — The fair values disclosed for non-certificate accounts are, by definition, equal to the amount payable on demand at the reporting date which is their carrying amounts. Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Borrowings — The fair value is estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Accrued interest — The carrying amounts of accrued interest approximate fair value.

Forward loan sale commitments and derivative loan commitments — Forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Derivative loan commitments also include the fair values of respective servicing rights. Management judgment and estimation is required in determining these fair value measurements.

Loan level interest rate swaps — The fair value is based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves.

Off-balance sheet credit-related instruments — Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these instruments is considered immaterial.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Level 1		Level 2		Level 3		Total Fair Value
	(In thousands)
June 30, 2015
Assets:
Debt securities	$	—	$	99,753	$	—	$	99,753
Marketable equity securities		75,418		—		—		75,418
Derivative loan commitments		—		—		124		124
Forward loan sale commitments		—		—		247		247
Loan level interest rate swaps		—		—		780		780
Total assets	$	75,418	$	99,753	$	1,151	$	176,322
Liabilities:
Derivative loan commitments	$	—	$	—	$	87	$	87
Forward loan sale commitments		—		—		19		19
Loan level interest rate swaps		—		—		780		780
Total liabilities	$	—	$	—	$	886	$	886
December 31, 2014
Assets:
Debt securities	$	—	$	125,051	$	—	$	125,051
Marketable equity securities		78,470		—		—		78,470
Derivative loan commitments		—		—		159		159
Forward loan sale commitments		—		—		11		11
Loan level interest rate swaps		—		—		932		932
Total assets	$	78,470	$	125,051	$	1,102	$	204,623
Liabilities:
Derivative loan commitments	$	—	$	—	$	36	$	36
Forward loan sale commitments		—		—		33		33
Loan level interest rate swaps		—		—		932		932
Total liabilities	$	—	$	—	$	1,001	$	1,001

For the six months ended June 30, 2015 and 2014, there were no transfers in or out of Levels 1 and 2 and the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Derivative loan commitments and forward sale commitments, net:
Beginning balance	$	96	$	90	$	101	$	88
Total realized and unrealized losses included in net income		169		30		164		32
Ending balance	$	265	$	120	$	265	$	120
Total realized gain relating to instruments still held at period end	$	265	$	120	$	265	$	120

Assets Measured at Fair Value on a Non-recurring Basis

The Company may also be required, from time to time, to measure certain other assets on a non-recurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of lower-of-cost-or market accounting or write-downs of individual assets.

The following tables summarize the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. The gain/loss represents the amount of write-down, charge-off or specific reserve recorded during the periods noted on the assets held at period end. There were no liabilities measured at fair value on a non-recurring basis.

	June 30, 2015						Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	24,937	$	(2,287	)	$	(2,287	)
Foreclosed real estate		—		—		1,046		—			—
	$	—	$	—	$	25,983	$	(2,287	)	$	(2,287	)
							Three Months Ended			Six Months Ended
	December 31, 2014						June 30, 2014			June 30, 2014
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	13,664	$	14		$	(43	)
Foreclosed real estate		—		—		1,046		(80	)		(80	)
	$	—	$	—	$	14,710	$	(66	)	$	(123	)

Certain impaired loans were adjusted to fair value, less cost to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties.

Certain properties in foreclosed real estate were adjusted to fair value using appraised values of collateral, less cost to sell, and adjusted as necessary by management based on unobservable inputs for specific properties. The loss on foreclosed assets represents adjustments in valuation recorded during the time period indicated and not for losses incurred on sales.

Summary of Fair Values of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
June 30, 2015
Financial assets:
Cash and due from banks	$	176,654	$	176,654	$	—	$	—	$	176,654
Certificates of deposit		95,000		—		95,182		—		95,182
Securities available for sale		175,171		75,418		99,753		—		175,171
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,719,870		—		—		2,730,834		2,730,834
Accrued interest receivable		8,054		—		—		8,054		8,054
Financial liabilities:
Deposits		2,551,166		—		—		2,502,665		2,502,665
Borrowings		140,817		—		141,761		—		141,761
Accrued interest payable		771		—		—		771		771
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		124		—		—		124		124
Forward loan sale commitments		247		—		—		247		247
Loan level interest rate swaps		780		—		—		780		780
Liabilities:
Derivative loan commitments		87		—		—		87		87
Forward loan sale commitments		19		—		—		19		19
Loan level interest rate swaps		780		—		—		780		780

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets:
Cash and due from banks	$	205,732	$	205,732	$	—	$	—	$	205,732
Certificates of deposit		85,000		—		85,096		—		85,096
Securities available for sale		203,521		78,470		125,051		—		203,521
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,649,878		—		—		2,666,049		2,666,049
Accrued interest receivable		7,748		—		—		7,748		7,748
Financial liabilities:
Deposits		2,503,935		—		—		2,507,982		2,507,982
Borrowings		171,899		—		172,074		—		172,074
Accrued interest payable		891		—		—		891		891
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		159		—		—		159		159
Forward loan sale commitments		11		—		—		11		11
Loan level interest rate swaps		932		—		—		932		932
Liabilities:
Derivative loan commitments		36		—		—		36		36
Forward loan sale commitments		33		—		—		33		33
Loan level interest rate swaps		932		—		—		932		932

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Loans

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans

5. LOANS

The Company’s loan portfolio consists primarily of residential real estate, commercial real estate, construction, commercial and industrial, and consumer segments. The residential real estate loans include classes for one- to four-family, multi-family and home equity lines of credit. There are no foreign loans outstanding. Interest rates charged on loans are affected principally by the demand for such loans, the supply of money available for lending purposes and the rates offered by our competitors. A summary of loans follows:

	June 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
	(Dollars in thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	462,897			16.8	%	$	468,560			17.5	%
Multi-family		401,584			14.6			409,675			15.3
Home equity lines of credit		48,274			1.8			50,091			1.9
Commercial real estate		1,134,686			41.3			1,145,820			42.8
Construction		335,939			12.2			265,980			9.9
Total real estate loans		2,383,380			86.7			2,340,126			87.4
Commercial and industrial		354,696			12.9			330,813			12.3
Consumer		9,564			0.4			8,772			0.3
Total loans		2,747,640			100.0	%		2,679,711			100.0	%
Allowance for loan losses		(30,109	)					(28,469	)
Net deferred loan origination fees		(2,815	)					(2,335	)
Loans, net	$	2,714,716					$	2,648,907

The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At June 30, 2015 and December 31, 2014, the Company was servicing loans for participants aggregating $112.1 million and $88.1 million, respectively.

As a result of the Mt. Washington Bank acquisition in January 2010, the Company acquired loans at fair value of $345.3 million. Included in this amount was $27.7 million of loans with evidence of deterioration of credit quality since origination for which it was probable, at the time of the acquisition, that the Company would be unable to collect all contractually required payments receivable. The Company’s evaluation of loans with evidence of credit deterioration as of the acquisition date resulted in a nonaccretable discount of $7.6 million, which is defined as the loan’s contractually required payments receivable in excess of the amount of its cash flows expected to be collected. The Company considered factors such as payment history, collateral values, and accrual status when determining whether there was evidence of deterioration of the loan’s credit quality at the acquisition date.

The following is a summary of the outstanding balance of the acquired loans with evidence of credit deterioration:

	June 30,			December 31,
	2015			2014
	(In thousands)
Real estate loans:
Residential real estate:
One- to four-family	$	5,479		$	5,776
Multi-family		608			625
Home equity lines of credit		426			505
Commercial real estate		369			447
Outstanding principal balance		6,882			7,353
Discount		(1,552	)		(1,787	)
Carrying amount	$	5,330		$	5,566

A rollforward of the accretable discount, included with the outstanding loan balances, follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Beginning balance	$	776		$	1,170		$	919		$	1,181
Accretion		(14	)		(16	)		(28	)		(27	)
Disposals		(78	)		—			(207	)		—
Ending balance	$	684		$	1,154		$	684		$	1,154

An analysis of the allowance for loan losses and related information follows:

	For the Three Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,663		$	3,608		$	95		$	12,942		$	5,356		$	4,853		$	84		$	28,601
Provision (credit) for loan losses		(139	)		(86	)		57			(144	)		3,576			331			56			3,651
Charge-offs		(7	)		—			—			—			(2,287	)		—			(57	)		(2,351	)
Recoveries		—			—			—			18			166			1			23			208
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Three Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,960		$	3,276		$	105		$	11,924		$	4,149		$	3,928		$	98		$	25,440
Provision (credit) for loan losses		(52	)		70			5			57			353			254			9			696
Charge-offs		—			—			(5	)		—			—			—			(36	)		(41	)
Recoveries		5			—			—			—			10			3			18			36
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131
	For the Six Months Ended June 30, 2015
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,849		$	3,635		$	100		$	13,000		$	5,155		$	4,633		$	97		$	28,469
Provision (credit) for loan losses		(180	)		(113	)		52			(202	)		3,485			584			85			3,711
Charge-offs		(160	)		—			—			—			(2,287	)		(33	)		(118	)		(2,598	)
Recoveries		8			—			—			18			458			1			42			527
Ending balance	$	1,517		$	3,522		$	152		$	12,816		$	6,811		$	5,185		$	106		$	30,109
	For the Six Months Ended June 30, 2014
	One- to four-family			Multi- family			Home equity lines of credit			Commercial real estate			Construction			Commercial and industrial			Consumer			Total
	(In thousands)
Beginning balance	$	1,991		$	2,419		$	155		$	12,831		$	4,374		$	3,433		$	132		$	25,335
Provision (credit) for loan losses		(68	)		927			(45	)		(838	)		117			746			(10	)		829
Charge-offs		(54	)		—			(5	)		(12	)		—			—			(86	)		(157	)
Recoveries		44			—			—			—			21			6			53			124
Ending balance	$	1,913		$	3,346		$	105		$	11,981		$	4,512		$	4,185		$	89		$	26,131

	One- to four-family		Multi- family		Home of equity lines credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
June 30, 2015
Amount of allowance for loan losses for loans deemed to be impaired	$	3	$	164	$	—	$	28	$	—	$	3	$	—	$	198
Amount of allowance for loan losses for loans not deemed to be impaired		1,514		3,358		152		12,788		6,811		5,182		106		29,911
	$	1,517	$	3,522	$	152	$	12,816	$	6,811	$	5,185	$	106	$	30,109
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans deemed to be impaired	$	2,071	$	1,422	$	—	$	5,403	$	19,174	$	996	$	—	$	29,066
Loans not deemed to be impaired		460,826		400,162		48,274		1,129,283		316,765		353,700		9,564		2,718,574
	$	462,897	$	401,584	$	48,274	$	1,134,686	$	335,939	$	354,696	$	9,564	$	2,747,640
	One- to four-family		Multi- family		Home equity lines of credit		Commercial real estate		Construction		Commercial and industrial		Consumer		Total
	(In thousands)
December 31, 2014
Amount of allowance for loan losses for loans deemed to be impaired	$	76	$	168	$	—	$	—	$	32	$	14	$	—	$	290
Amount of allowance for loan losses for loans not deemed to be impaired		1,773		3,467		100		13,000		5,123		4,619		97		28,179
	$	1,849	$	3,635	$	100	$	13,000	$	5,155	$	4,633	$	97	$	28,469
Amount of allowance for loan losses for loans acquired with deteriorated credit quality included above	$	41	$	—	$	—	$	—	$	—	$	—	$	—	$	41
Loans deemed to be impaired	$	4,415	$	1,443	$	20	$	15,398	$	9,818	$	984	$	—	$	32,078
Loans not deemed to be impaired		464,145		408,232		50,071		1,130,422		256,162		329,829		8,772		2,647,633
	$	468,560	$	409,675	$	50,091	$	1,145,820	$	265,980	$	330,813	$	8,772	$	2,679,711

The following table provides information about the Company’s past due and non-accrual loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
June 30, 2015
Real estate loans:
Residential real estate:
One- to four-family	$	2,616	$	780	$	1,834	$	5,230	$	11,094
Home equity lines of credit		956		49		658		1,663		1,930
Commercial real estate		—		—		4,988		4,988		5,271
Construction		—		—		16,606		16,606		17,775
Total real estate loans		3,572		829		24,086		28,487		36,070
Commercial and industrial		544		—		892		1,436		892
Consumer		476		406		—		882		—
Total	$	4,592	$	1,235	$	24,978	$	30,805	$	36,962

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans on Non-accrual
	(In thousands)
December 31, 2014
Real estate loans:
Residential real estate:
One- to four-family	$	4,386	$	1,129	$	3,056	$	8,571	$	14,649
Home equity lines of credit		1,040		75		753		1,868		2,277
Commercial real estate		—		1,739		3,038		4,777		5,311
Construction		—		—		7,350		7,350		8,417
Total real estate loans		5,426		2,943		14,197		22,566		30,654
Commercial and industrial		5		99		833		937		855
Consumer		521		527		—		1,048		—
Total	$	5,952	$	3,569	$	15,030	$	24,551	$	31,509

At June 30, 2015 and December 31, 2014, the Company did not have any accruing loans past due 90 days or more. Delinquent loans at June 30, 2015 and December 31, 2014 included $972,000 and $485,000 of loans acquired with evidence of credit deterioration. At June 30, 2015 and December 31, 2014, non-accrual loans included $290,000 and $994,000 of loans acquired with evidence of credit deterioration.

The following tables provide information with respect to the Company’s impaired loans:

	June 30, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
	(In thousands)
Impaired loans without a valuation allowance:
One- to four-family	$	1,802	$	2,223			$	2,986	$	3,515
Multi-family		95		95				102		102
Home equity lines of credit		—		—				20		20
Commercial real estate		4,646		4,941				15,398		15,705
Construction		19,174		22,211				9,328		10,007
Commercial and industrial		988		1,320				936		1,320
Total		26,705		30,790				28,770		30,669
Impaired loans with a valuation allowance:
One- to four-family		269		269	$	3		1,429		1,429	$	76
Multi-family		1,327		1,327		164		1,341		1,341		168
Commercial real estate		757		757		28		—		—		—
Construction		—		—		—		490		490		32
Commercial and industrial		8		8		3		48		48		14
Total		2,361		2,361		198		3,308		3,308		290
Total impaired loans	$	29,066	$	33,151	$	198	$	32,078	$	33,977	$	290

At June 30, 2015, additional funds of $29,000 are committed to be advanced in connection with impaired construction loans.

	Three Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	2,282	$	35	$	34	$	4,033	$	50	$	55
Multi-family		1,426		14		14		5,319		77		53
Home equity lines of credit		—		—		—		20		—		—
Commercial real estate		5,558		33		33		9,546		126		77
Construction		22,304		60		60		13,876		235		69
Commercial and industrial		996		2		2		1,051		20		3
Total impaired loans	$	32,566	$	144	$	143	$	33,845	$	508	$	257

	Six Months Ended June 30,
	2015						2014
					Interest						Interest
	Average		Interest		Income		Average		Interest		Income
	Recorded		Income		Recognized		Recorded		Income		Recognized
	Investment		Recognized		on Cash Basis		Investment		Recognized		on Cash Basis
	(In thousands)
One- to four-family	$	3,309	$	85	$	84	$	4,048	$	100	$	95
Multi-family		1,431		27		27		5,338		155		156
Home equity lines of credit		—		—		—		21		—		—
Commercial real estate		10,702		146		146		9,593		267		135
Construction		15,321		256		254		13,673		469		123
Commercial and industrial		973		5		5		1,060		39		8
Total impaired loans	$	31,736	$	519	$	516	$	33,733	$	1,030	$	517

The following table summarizes the troubled debt restructurings (“TDRs”) at the dates indicated:

	June 30,		December 31,
	2015		2014
	(In thousands)
TDRs on accrual status:
One- to four-family	$	2,906	$	2,946
Multi-family		1,422		1,443
Home equity lines of credit		19		20
Commercial real estate		10,111		9,950
Construction		174		121
Commercial and industrial		142		—
Total TDRs on accrual status		14,774		14,480
TDRs on non-accrual status:
One- to four-family		1,347		1,469
Commercial real estate		450		283
Construction		2,301		6,496
Commercial and industrial		267		186
Total TDRs on non-accrual status		4,365		8,434
Total TDRs	$	19,139	$	22,914

For the six months ended June 30, 2015 and 2014, new TDRs were immaterial and there were no TDRs that defaulted within the 12 months of restructure. The Company generally places loans modified as TDRs on non-accrual status for a minimum period of six months. Loans modified as TDRs qualify for return to accrual status once they have demonstrated performance with the modified terms of the loan agreement for a minimum of six consecutive months and future payments are reasonably assured. TDRs are reported as impaired loans with an allowance established as part of the allocated component of the allowance for loan losses when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. TDRs may be removed from impairment disclosures in the year following the restructure if the borrower demonstrates compliance with the modified terms and the restructuring agreement specifies an interest rate equal to that which would be provided to a borrower with similar credit at the time of restructuring.

The Company utilizes a nine-grade internal loan rating system for multi-family, commercial real estate, construction, and commercial and industrial loans as follows:

• Loans rated 1, 2, 3 and 3A: Loans in these categories are considered “pass” rated loans with low to average risk.

• Loans rated 4 and 4A: Loans in these categories are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management.

• Loans rated 5: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

• Loans rated 6: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

• Loans rated 7: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as assets is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all multi-family, commercial real estate, construction, and commercial and industrial loans. The Company also engages an independent third-party to review a significant portion of loans within these segments on at least an annual basis. Management uses the results of these reviews as part of its annual review process.

The following tables provide information with respect to the Company’s risk rating:

	June 30, 2015								December 31, 2014
	Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial		Multi-family residential real estate		Commercial real estate		Construction		Commercial and industrial
	(In thousands)
Loans rated 1 - 3A	$	390,867	$	1,123,746	$	314,956	$	328,916	$	399,113	$	1,135,540	$	238,505	$	322,013
Loans rated 4 - 4A		2,225		5,255		—		24,747		1,960		4,832		—		7,816
Loans rated 5		8,492		5,685		20,983		1,033		8,602		5,448		27,475		984
Loans rated 6		—		—		—		—		—		—		—		—
Loans rated 7		—		—		—		—		—		—		—		—
Total	$	401,584	$	1,134,686	$	335,939	$	354,696	$	409,675	$	1,145,820	$	265,980	$	330,813

For one- to four-family real estate loans, home equity lines of credit and consumer loans, management uses delinquency reports as the key credit quality indicator.

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Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

3. EARNINGS PER SHARE

Basic earnings per share excludes dilution and is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Dividends on unvested stock awards are non-forfeitable, therefore these unvested stock awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share is computed in a manner similar to that of basic earnings per share except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares (computed using the treasury method) that would have been outstanding if all potentially dilutive common stock equivalents (such as options) were issued during the period. Unallocated common shares held by the ESOP are shown as a reduction in stockholders’ equity and are not included in the weighted-average number of common shares outstanding for either basic or diluted earnings per share calculations.

Basic and diluted earnings per share have been computed based on the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(Dollars in thousands, except per share amounts)
Net income available to common stockholders	$	5,585	$	5,504	$	11,990	$	10,275
Basic weighted average shares outstanding		52,074,889		53,047,448		51,969,106		53,029,783
Effect of dilutive stock options		1,091,671		1,078,317		1,116,573		1,067,997
Diluted weighted average shares outstanding		53,166,560		54,125,765		53,085,679		54,097,780
Earnings per share:
Basic	$	0.11	$	0.10	$	0.23	$	0.19
Diluted	$	0.11	$	0.10	$	0.23	$	0.19

Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one). For the three and six months ended June 30, 2015, options for the exercise of 37,789 and 39,547, respectively, were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. There were no anti-dilutive options for the three and six months ended June 30, 2014.

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Securities Available for Sale

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

4. SECURITIES AVAILABLE FOR SALE

The amortized cost and fair values of securities available for sale, with gross unrealized gains and losses, follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds:
Financial services	$	28,388	$	236	$	(27	)	$	28,597
Industry and manufacturing		3,996		47		—			4,043
Other		1,001		5		—			1,006
Total corporate bonds		33,385		288		(27	)		33,646
Government-sponsored enterprises		26,043		7		(110	)		25,940
U.S. treasury securities		24,994		22		—			25,016
Municipal bonds		5,228		130		—			5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		7,924		530		(2	)		8,452
Private label		1,290		51		—			1,341
Total debt securities		98,864		1,028		(139	)		99,753
Marketable equity securities:
Common stocks:
Financial services		10,983		740		(162	)		11,561
Industry and manufacturing		20,326		653		(2,579	)		18,400
Consumer products and services		17,815		596		(743	)		17,668
Technology		4,329		91		(332	)		4,088
Healthcare		6,871		1,011		(10	)		7,872
Other		3,441		1,301		(3	)		4,739
Total common stocks		63,765		4,392		(3,829	)		64,328
Money market mutual funds		11,130		—		(40	)		11,090
Total marketable equity securities		74,895		4,392		(3,869	)		75,418
Total securities available for sale	$	173,759	$	5,420	$	(4,008	)	$	175,171
December 31, 2014
Debt securities:
Corporate bonds:
Financial services	$	37,852	$	533	$	(38	)	$	38,347
Industry and manufacturing		5,935		121		—			6,056
Healthcare		4,001		27		—			4,028
Other		1,005		19		—			1,024
Total corporate bonds		48,793		700		(38	)		49,455
Government-sponsored enterprises		34,548		9		(357	)		34,200
U.S. treasury securities		24,991		—		(54	)		24,937
Municipal bonds		5,441		182		—			5,623
Residential mortgage-backed securities:
Government-sponsored enterprises		8,754		589		(3	)		9,340
Private label		1,410		86		—			1,496
Total debt securities		123,937		1,566		(452	)		125,051
Marketable equity securities:
Common stocks:
Financial services		10,849		1,225		(51	)		12,023
Industry and manufacturing		16,894		822		(1,658	)		16,058
Consumer products and services		13,992		1,467		(549	)		14,910
Technology		2,521		79		(184	)		2,416
Healthcare		5,220		1,551		—			6,771
Other		3,441		1,826		—			5,267
Total common stocks		52,917		6,970		(2,442	)		57,445
Money market mutual funds		21,060		—		(35	)		21,025
Total marketable equity securities		73,977		6,970		(2,477	)		78,470
Total securities available for sale	$	197,914	$	8,536	$	(2,929	)	$	203,521

At June 30, 2015, securities with an amortized cost of $17.5 million and $1.1 million, respectively, were pledged as collateral for Federal Home Loan Bank of Boston borrowings and Federal Reserve Bank discount window borrowings.

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2015 are as follows. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

					After One Year
	One Year or Less				Through Five Years				After Five Years				Total
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
	(In thousands)
Corporate bonds:
Financial services	$	10,989	$	11,083	$	17,399	$	17,514	$	—	$	—	$	28,388	$	28,597
Industry and manufacturing		2,996		3,028		1,000		1,015		—		—		3,996		4,043
Other		1,001		1,006		—		—		—		—		1,001		1,006
Total corporate bonds		14,986		15,117		18,399		18,529		—		—		33,385		33,646
Government-sponsored enterprises		43		43		22,000		21,951		4,000		3,946		26,043		25,940
U.S. treasury securities		—		—		24,994		25,016		—		—		24,994		25,016
Municipal bonds		801		808		4,427		4,550		—		—		5,228		5,358
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		—		—		7,924		8,452		7,924		8,452
Private label		—		—		—		—		1,290		1,341		1,290		1,341
Total	$	15,830	$	15,968	$	69,820	$	70,046	$	13,214	$	13,739	$	98,864	$	99,753

For the three months ended June 30, 2015 and 2014, proceeds from sales of securities available for sale amounted to $14.4 million and $7.2 million, respectively. Gross gains of $1.6 million and $1.5 million and gross losses of $158,000 and $0, respectively, were realized on those sales. For the six months ended June 30, 2015 and 2014, proceeds from sales of securities available for sale amounted to $19.1 million and $14.8 million, respectively. Gross gains of $2.8 million and $3.1 million and gross losses of $323,000 and $0, respectively, were realized on those sales.

Information pertaining to securities available for sale as of June 30, 2015 and December 31, 2014, with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
June 30, 2015
Debt securities:
Corporate bonds - financial services	$	2	$	1,998	$	25	$	1,476
Government-sponsored enterprises		19		7,981		91		8,910
Residential mortgage-backed securities:
Government-sponsored enterprises		—		—		2		220
Total debt securities		21		9,979		118		10,606
Marketable equity securities:
Common stocks:
Financial services		162		2,535		—		—
Industry and manufacturing		2,579		12,299		—		—
Consumer products and services		423		7,448		320		1,816
Technology		332		2,160		—		—
Healthcare		10		818		—		—
Other		3		464		—		—
Total common stocks		3,509		25,724		320		1,816
Money market mutual funds		—		—		40		1,020
Total marketable equity securities		3,509		25,724		360		2,836
Total temporarily impaired securities	$	3,530	$	35,703	$	478	$	13,442

	Less Than Twelve Months				Twelve Months or Longer
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
December 31, 2014
Debt securities:
Corporate bonds-financial services	$	5	$	1,994	$	33	$	1,467
Government-sponsored enterprises		10		4,491		347		24,653
U.S. treasury securities		54		24,937		—		—
Residential mortgage-backed securities:
Government-sponsored enterprises		3		225		—		—
Total debt securities		72		31,647		380		26,120
Marketable equity securities:
Common stocks:
Financial services		51		1,855		—		—
Industry and manufacturing		1,658		8,046		—		—
Consumer products and services		549		3,864		—		—
Technology		184		1,855		—		—
Total common stocks		2,442		15,620		—		—
Money market mutual funds		—		—		35		1,018
Total marketable equity securities		2,442		15,620		35		1,018
Total temporarily impaired securities	$	2,514	$	47,267	$	415	$	27,138

The Company determined no securities were other-than-temporarily impaired for the six months ended June 30, 2015 or 2014. Management evaluates securities for other-than-temporary impairment on a quarterly basis, with more frequent evaluation for selected issuers or when economic or market concerns warrant such evaluations.

As of June 30, 2015, the net unrealized gain on the total debt securities portfolio was $889,000. At June 30, 2015, 19 debt securities had unrealized losses with aggregate depreciation of 0.7% from the Company’s amortized cost basis. In analyzing a debt issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, industry analysts’ reports and, to a lesser extent given the relatively insignificant levels of depreciation in the Company’s debt portfolio, spread differentials between the effective rates on instruments in the portfolio compared to risk-free rates. The unrealized losses are primarily caused by a recent increase in interest rates. The contractual terms of these investments do not permit the companies to settle the security at a price less than the par value of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment. Because (1) the Company does not intend to sell the securities; (2) the Company does not believe it is more likely than not that the Company will be required to sell the securities before recovery of its amortized cost basis; and (3) the present value of expected cash flows is sufficient to recover the entire amortized cost basis of the securities, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2015.

As of June 30, 2015, the net unrealized gain on the total marketable equity securities portfolio was $523,000. At June 30, 2015, 54 marketable equity securities have unrealized losses with aggregate depreciation of 11.9% from the Company’s cost basis. Although some issuers have shown declines in earnings, no issues have been identified that cause management to believe the decline in market value is other than temporary, and the Company has the ability and intent to hold these investments until a recovery of fair value. In analyzing an equity issuer’s financial condition, management considers industry analysts’ reports, financial performance and projected target prices of investment analysts within a one-year time frame. A decline of 10% or more in the value of an acquired equity security is generally the triggering event for management to review individual securities for liquidation and/or classification as other-than-temporarily impaired. Impairment losses are recognized when management concludes that declines in the value of equity securities are other than temporary, or when they can no longer assert that they have the intent and ability to hold depreciated equity securities for a period of time sufficient to allow for any anticipated recovery in fair value. Unrealized losses on marketable equity securities that are in excess of 25% of cost and that have been sustained for more than twelve months are generally considered-other-than temporary and charged to earnings as impairment losses, or realized through sale of the security.

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Deposits

6 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

Deposits

6. DEPOSITS

A summary of deposit balances, by type, follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Demand deposits	$	351,236	$	285,990
NOW deposits		294,989		294,840
Money market deposits		907,933		942,542
Regular savings and other deposits		286,311		272,611
Total non-certificate accounts		1,840,469		1,795,983
Term certificates less than $100,000		298,272		280,393
Term certificates $100,000 and greater		412,425		427,559
Total term certificates		710,697		707,952
Total deposits	$	2,551,166	$	2,503,935

A summary of term certificates, by maturity, follows:

	June 30, 2015					December 31, 2014
Maturing	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Within 1 year	$	463,515		1.04	%	$	493,676		1.05	%
Over 1 year to 2 years		161,177		1.24			131,099		1.31
Over 2 years to 3 years		41,340		1.16			42,237		1.39
Over 3 years to 4 years		22,931		1.45			18,202		1.47
Over 4 years to 5 years		18,462		1.48			19,539		1.50
Greater than 5 years		3,272		5.50			3,199		5.50
	$	710,697		1.13	%	$	707,952		1.16	%

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Securities Available for Sale - Schedule of Information Pertaining to Securities Available for Sale (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	$ 3,530	$ 2,514
Fair value, less than twelve months	35,703	47,267
Gross unrealized losses, over twelve months	478	415
Fair value, over twelve months	13,442	27,138
Debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	21	72
Fair value, less than twelve months	9,979	31,647
Gross unrealized losses, over twelve months	118	380
Fair value, over twelve months	10,606	26,120
Debt securities [Member] | Government-sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	19	10
Fair value, less than twelve months	7,981	4,491
Gross unrealized losses, over twelve months	91	347
Fair value, over twelve months	8,910	24,653
Debt securities [Member] | Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months		3
Fair value, less than twelve months		225
Gross unrealized losses, over twelve months	2
Fair value, over twelve months	220
Debt securities [Member] | US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months		54
Fair value, less than twelve months		24,937
Marketable Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	3,509	2,442
Fair value, less than twelve months	25,724	15,620
Gross unrealized losses, over twelve months	360	35
Fair value, over twelve months	2,836	1,018
Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	3,509	2,442
Fair value, less than twelve months	25,724	15,620
Gross unrealized losses, over twelve months	320
Fair value, over twelve months	1,816
Marketable Equity Securities [Member] | Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, over twelve months	40	35
Fair value, over twelve months	1,020	1,018
Financial Services [Member] | Debt securities [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	2	5
Fair value, less than twelve months	1,998	1,994
Gross unrealized losses, over twelve months	25	33
Fair value, over twelve months	1,476	1,467
Financial Services [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	162	51
Fair value, less than twelve months	2,535	1,855
Industry and Manufacturing [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	2,579	1,658
Fair value, less than twelve months	12,299	8,046
Consumer Products and Services [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	423	549
Fair value, less than twelve months	7,448	3,864
Gross unrealized losses, over twelve months	320
Fair value, over twelve months	1,816
Technology [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	332	184
Fair value, less than twelve months	2,160	$ 1,855
Healthcare [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	10
Fair value, less than twelve months	818
Other Sectors [Member] | Marketable Equity Securities [Member] | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses, less than twelve months	3
Fair value, less than twelve months	$ 464

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Commitments and Derivatives - Fair Values of Derivative Instruments (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	$ 1,151,000	$ 1,102,000
Total, Liability, Fair Value	886,000	1,001,000
Derivative Loan Commitments [Member]
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	37,000	123,000
Derivative Loan Commitments [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total, Liability, Fair Value	87,000	36,000
Derivative Loan Commitments [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	124,000	159,000
Forward Loan Sale Commitments [Member]
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	228,000
Total, Liability, Fair Value		22,000
Forward Loan Sale Commitments [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total, Liability, Fair Value	19,000	33,000
Forward Loan Sale Commitments [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	247,000	11,000
Loan Level Interest Rate Swaps [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total, Liability, Fair Value	780,000	932,000
Loan Level Interest Rate Swaps [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total, Asset, Fair Value	$ 780,000	$ 932,000

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

Basic and diluted earnings per share have been computed based on the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(Dollars in thousands, except per share amounts)
Net income available to common stockholders	$	5,585	$	5,504	$	11,990	$	10,275
Basic weighted average shares outstanding		52,074,889		53,047,448		51,969,106		53,029,783
Effect of dilutive stock options		1,091,671		1,078,317		1,116,573		1,067,997
Diluted weighted average shares outstanding		53,166,560		54,125,765		53,085,679		54,097,780
Earnings per share:
Basic	$	0.11	$	0.10	$	0.23	$	0.19
Diluted	$	0.11	$	0.10	$	0.23	$	0.19

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Commitments and Derivatives (Tables)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Loan Commitments Outstanding

A summary of outstanding financial instruments whose contract amounts represent credit risk is as follows:

	June 30,		December 31,
	2015		2014
	(In thousands)
Unadvanced portion of existing loans:
Construction	$	405,472	$	315,206
Home equity line of credit		33,358		32,861
Other lines and letters of credit		120,585		119,352
Commitments to originate:
One- to four-family		14,599		20,641
Commercial real estate		186,079		46,260
Construction		180,128		116,215
Commercial and industrial		41,335		19,013
Other loans		1,343		785
Total loan commitments outstanding	$	982,899	$	670,333

Summary Information Regarding the Derivatives

Summary information regarding these derivatives is presented below:

				June 30, 2015					December 31, 2014
	Maturity	Interest Rate Paid	Interest Rate Received	Notional Amount		Fair Value			Notional Amount		Fair Value
		(Dollars in thousands)
Customer interest rate swap	10/17/33	1 Mo. Libor + 175bp	Fixed (4.1052%)	$	11,175	$	780		$	11,245	$	932
Third-party interest rate swap	10/17/33	Fixed (4.1052%)	1 Mo. Libor + 175bp		11,175		(780	)		11,245		(932	)

Fair Values of Derivative Instruments

The following table presents the fair values of derivative instruments in the consolidated balance sheets.

	Assets			Liabilities
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
June 30, 2015
Derivative loan commitments	Other assets	$	124	Other liabilities	$	87
Forward loan sale commitments	Other assets		247	Other liabilities		19
Loan level interest rate swaps	Other assets		780	Other liabilities		780
Total		$	1,151		$	886
December 31, 2014
Derivative loan commitments	Other assets	$	159	Other liabilities	$	36
Forward loan sale commitments	Other assets		11	Other liabilities		33
Loan level interest rate swaps	Other assets		932	Other liabilities		932
Total		$	1,102		$	1,001

Derivative Instruments

The following table presents information pertaining to gains (losses) on the Company’s derivative instruments included in the consolidated statements of net income.

		Three Months Ended June 30,						Six Months Ended June 30,
Derivative Instrument	Location of Gain (Loss)	2015			2014			2015			2014
					(In thousands)
Derivative loan commitments	Mortgage banking gains, net	$	(35	)	$	103		$	(86	)	$	141
Forward loan sale commitments	Mortgage banking gains, net		204			(73	)		250			(109	)
Total		$	169		$	30		$	164		$	32

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Commitments and Derivatives - Summary Information Regarding the Derivatives (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Loss Contingencies [Line Items]
Notional amount	$ 11,500,000	$ 12,200,000
Customer Interest Rate Swap [Member]
Loss Contingencies [Line Items]
Notional amount	11,175,000	11,245,000
Fair value	$ 780,000	932,000
Maturity	Oct. 17, 2033
Interest rate paid	1 Mo. Libor + 175bp
Interest rate received	Fixed (4.1052%)
Third Party Interest Rate Swap [Member]
Loss Contingencies [Line Items]
Notional amount	$ 11,175,000	11,245,000
Fair value	$ (780,000)	$ (932,000)
Maturity	Oct. 17, 2033
Interest rate paid	Fixed (4.1052%)
Interest rate received	1 Mo. Libor + 175bp

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Loans - Impaired Loans of Company (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Recorded Investment, Total	$ 29,066		$ 29,066		$ 32,078
Impaired Loans Without Valuation Allowance, Recorded Investment	26,705		26,705		28,770
Unpaid Principal Balance, Total	33,151		33,151		33,977
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	30,790		30,790		30,669
Impaired Loans With Valuation Allowance, Recorded Investment	2,361		2,361		3,308
Impaired Loans With Valuation Allowance, Unpaid Principal Balance	2,361		2,361		3,308
Impaired Loans With Valuation Allowance, Related Allowance	198		198		290
Average Recorded Investment	32,566	$ 33,845	31,736	$ 33,733
Interest Income Recognized	144	508	519	1,030
Interest Income Recognized on Cash Basis	143	257	516	517
Multi-Family Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans Without Valuation Allowance, Recorded Investment	95		95		102
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	95		95		102
Impaired Loans With Valuation Allowance, Recorded Investment	1,327		1,327		1,341
Impaired Loans With Valuation Allowance, Unpaid Principal Balance	1,327		1,327		1,341
Impaired Loans With Valuation Allowance, Related Allowance	164		164		168
Average Recorded Investment	1,426	5,319	1,431	5,338
Interest Income Recognized	14	77	27	155
Interest Income Recognized on Cash Basis	14	53	27	156
One-to Four-Family [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans Without Valuation Allowance, Recorded Investment	1,802		1,802		2,986
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	2,223		2,223		3,515
Impaired Loans With Valuation Allowance, Recorded Investment	269		269		1,429
Impaired Loans With Valuation Allowance, Unpaid Principal Balance	269		269		1,429
Impaired Loans With Valuation Allowance, Related Allowance	3		3		76
Average Recorded Investment	2,282	4,033	3,309	4,048
Interest Income Recognized	35	50	85	100
Interest Income Recognized on Cash Basis	34	55	84	95
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans Without Valuation Allowance, Recorded Investment	4,646		4,646		15,398
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	4,941		4,941		15,705
Impaired Loans With Valuation Allowance, Recorded Investment	757		757
Impaired Loans With Valuation Allowance, Unpaid Principal Balance	757		757
Impaired Loans With Valuation Allowance, Related Allowance	28		28
Average Recorded Investment	5,558	9,546	10,702	9,593
Interest Income Recognized	33	126	146	267
Interest Income Recognized on Cash Basis	33	77	146	135
Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, Total	19,174		19,174		9,818
Impaired Loans Without Valuation Allowance, Recorded Investment	19,174		19,174		9,328
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	22,211		22,211		10,007
Impaired Loans With Valuation Allowance, Recorded Investment					490
Impaired Loans With Valuation Allowance, Unpaid Principal Balance					490
Impaired Loans With Valuation Allowance, Related Allowance					32
Average Recorded Investment	22,304	13,876	15,321	13,673
Interest Income Recognized	60	235	256	469
Interest Income Recognized on Cash Basis	60	69	254	123
Home Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Impaired Loans Without Valuation Allowance, Recorded Investment					20
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance					20
Average Recorded Investment		20		21
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment, Total	996		996		984
Impaired Loans Without Valuation Allowance, Recorded Investment	988		988		936
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance	1,320		1,320		1,320
Impaired Loans With Valuation Allowance, Recorded Investment	8		8		48
Impaired Loans With Valuation Allowance, Unpaid Principal Balance	8		8		48
Impaired Loans With Valuation Allowance, Related Allowance	3		3		$ 14
Average Recorded Investment	996	1,051	973	1,060
Interest Income Recognized	2	20	5	39
Interest Income Recognized on Cash Basis	$ 2	$ 3	$ 5	$ 8

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Consolidated Statements of Net Income (Parenthetical)			6 Months Ended
	Jul. 28, 2014	Mar. 06, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Stock split, conversion ratio	2.4484	2.4484	2.4484	2.4484

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 11,990	$ 10,275	[1]
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of acquisition fair value adjustments	(47)	(20)
ESOP shares earned	765	514
Provision for loan losses	3,711	829	[1]
Accretion of net deferred loan origination fees	(371)	(231)
Net accretion of securities available for sale	(39)	(9)
Capitalization of mortgage servicing rights	(13)	(20)
Amortization of mortgage servicing rights	107	111
Depreciation and amortization expense	1,202	1,190
Gain on sales of securities, net	(2,444)	(3,065)	[1]
Net loss and provision for foreclosed real estate		79
Deferred income tax benefit	(97)	(134)
Income from bank-owned life insurance	(590)	(574)	[1]
Share-based compensation expense	288	434
Excess tax benefits in connection with share-based compensation	(255)	(77)
Net changes in:
Loans held for sale	(4,183)	(3,537)
Accrued interest receivable	(306)	9
Other assets	1,577	(1,199)
Accrued expenses and other liabilities	(3,046)	(3,971)
Net cash provided by operating activities	8,249	604
Cash flows from investing activities:
Purchases of certificates of deposit	(10,000)
Proceeds from maturities, calls and principal payments	18,148	26,853
Redemption of mutual funds, net	9,931	1,019
Proceeds from sales	19,095	14,814
Purchases	(20,543)	(19,661)
Loans originated, net of principal payments received	(69,145)	(106,440)
Purchases of premises and equipment	(1,349)	(690)
Purchase of Federal Home Loan Bank stock		(774)
Proceeds from sales of foreclosed real estate		540
Net cash used in investing activities	(53,863)	(84,339)
Cash flows from financing activities:
Net increase in deposits	47,240	315,720
Proceeds from Federal Home Loan Bank advances with maturities of three months or more		55,000
Repayment of Federal Home Loan Bank advances with maturities of three months or more	(31,082)	(5,563)
Stock options exercised	123	49
Excess tax benefits in connection with share-based compensation	255	77
Net cash provided by financing activities	16,536	365,283
Net change in cash and cash equivalents	(29,078)	281,548
Cash and cash equivalents at beginning of period	205,732	86,271
Cash and cash equivalents at end of period	176,654	367,819
Supplemental cash flow information:
Interest paid on deposits	9,133	8,825
Interest paid on borrowings	1,023	1,265
Income taxes paid, net of refunds	$ 8,510	7,033
Non-cash investing and financing activities:
Transfers from loans to foreclosed real estate		1,732
Net change in amounts due to broker on security transactions		$ 636

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

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Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Level 1		Level 2		Level 3		Total Fair Value
	(In thousands)
June 30, 2015
Assets:
Debt securities	$	—	$	99,753	$	—	$	99,753
Marketable equity securities		75,418		—		—		75,418
Derivative loan commitments		—		—		124		124
Forward loan sale commitments		—		—		247		247
Loan level interest rate swaps		—		—		780		780
Total assets	$	75,418	$	99,753	$	1,151	$	176,322
Liabilities:
Derivative loan commitments	$	—	$	—	$	87	$	87
Forward loan sale commitments		—		—		19		19
Loan level interest rate swaps		—		—		780		780
Total liabilities	$	—	$	—	$	886	$	886
December 31, 2014
Assets:
Debt securities	$	—	$	125,051	$	—	$	125,051
Marketable equity securities		78,470		—		—		78,470
Derivative loan commitments		—		—		159		159
Forward loan sale commitments		—		—		11		11
Loan level interest rate swaps		—		—		932		932
Total assets	$	78,470	$	125,051	$	1,102	$	204,623
Liabilities:
Derivative loan commitments	$	—	$	—	$	36	$	36
Forward loan sale commitments		—		—		33		33
Loan level interest rate swaps		—		—		932		932
Total liabilities	$	—	$	—	$	1,001	$	1,001

Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Derivative loan commitments and forward sale commitments, net:
Beginning balance	$	96	$	90	$	101	$	88
Total realized and unrealized losses included in net income		169		30		164		32
Ending balance	$	265	$	120	$	265	$	120
Total realized gain relating to instruments still held at period end	$	265	$	120	$	265	$	120

Assets Measured at Fair Value on a Non-recurring Basis

The following tables summarize the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. The gain/loss represents the amount of write-down, charge-off or specific reserve recorded during the periods noted on the assets held at period end. There were no liabilities measured at fair value on a non-recurring basis.

	June 30, 2015						Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	24,937	$	(2,287	)	$	(2,287	)
Foreclosed real estate		—		—		1,046		—			—
	$	—	$	—	$	25,983	$	(2,287	)	$	(2,287	)
							Three Months Ended			Six Months Ended
	December 31, 2014						June 30, 2014			June 30, 2014
	Level 1		Level 2		Level 3		Gains (Losses)			Gains (Losses)
	(In thousands)
Impaired loans	$	—	$	—	$	13,664	$	14		$	(43	)
Foreclosed real estate		—		—		1,046		(80	)		(80	)
	$	—	$	—	$	14,710	$	(66	)	$	(123	)

Summary of Fair Values of Financial Instruments

Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
June 30, 2015
Financial assets:
Cash and due from banks	$	176,654	$	176,654	$	—	$	—	$	176,654
Certificates of deposit		95,000		—		95,182		—		95,182
Securities available for sale		175,171		75,418		99,753		—		175,171
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,719,870		—		—		2,730,834		2,730,834
Accrued interest receivable		8,054		—		—		8,054		8,054
Financial liabilities:
Deposits		2,551,166		—		—		2,502,665		2,502,665
Borrowings		140,817		—		141,761		—		141,761
Accrued interest payable		771		—		—		771		771
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		124		—		—		124		124
Forward loan sale commitments		247		—		—		247		247
Loan level interest rate swaps		780		—		—		780		780
Liabilities:
Derivative loan commitments		87		—		—		87		87
Forward loan sale commitments		19		—		—		19		19
Loan level interest rate swaps		780		—		—		780		780

	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(In thousands)
December 31, 2014
Financial assets:
Cash and due from banks	$	205,732	$	205,732	$	—	$	—	$	205,732
Certificates of deposit		85,000		—		85,096		—		85,096
Securities available for sale		203,521		78,470		125,051		—		203,521
Federal Home Loan Bank stock		12,725		—		—		12,725		12,725
Loans and loans held for sale, net		2,649,878		—		—		2,666,049		2,666,049
Accrued interest receivable		7,748		—		—		7,748		7,748
Financial liabilities:
Deposits		2,503,935		—		—		2,507,982		2,507,982
Borrowings		171,899		—		172,074		—		172,074
Accrued interest payable		891		—		—		891		891
On-balance sheet derivative financial instruments:
Assets:
Derivative loan commitments		159		—		—		159		159
Forward loan sale commitments		11		—		—		11		11
Loan level interest rate swaps		932		—		—		932		932
Liabilities:
Derivative loan commitments		36		—		—		36		36
Forward loan sale commitments		33		—		—		33		33
Loan level interest rate swaps		932		—		—		932		932

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Label		Element	Value
Gain (Loss) on Sale of Securities, Net		us-gaap_GainLossOnSaleOfSecuritiesNet	$ 1,424
Gain (Loss) on Sale of Securities, Net	[1]	us-gaap_GainLossOnSaleOfSecuritiesNet	1,505
Bank Owned Life Insurance Income	[1]	us-gaap_BankOwnedLifeInsuranceIncome	293
Bank Owned Life Insurance Income		us-gaap_BankOwnedLifeInsuranceIncome	$ 294

[1] Share and per share amounts related to periods prior to the date of completion of the Conversion (July 28, 2014) have been restated to give retroactive recognition to the exchange ratio applied in the Conversion (2.4484-to-one) (see Note 1).

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Loans - Accretable Discount Included with Outstanding Loan Balances (Detail) - Available-for-sale Securities [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accretable Yield [Line Items]
Beginning balance	$ 776	$ 1,170	$ 919	$ 1,181
Accretion	(14)	(16)	(28)	(27)
Disposals	(78)		(207)
Ending balance	$ 684	$ 1,154	$ 684	$ 1,154

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Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This update is intended to reduce diversity in the application of guidance by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. Amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The objective of this ASU was to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements.