----

----

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Balance Sheets                                                                                                                |
| (Unaudited)                                                                                                                                     |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | June      30, |   |   | December      31, |   |
| (Dollars      in thousands)                                                                                                                     |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                                                          |
| Cash      and due from banks                                                                                                                    |   | $ | 11,956 |   |   | $ | 11,821 |   |
| Federal      funds sold                                                                                                                         |   |   | 31,594 |   |   |   | 91,272 |   |
|           Total      cash and cash equivalents                                                |   |   | 43,550 |   |   |   | 103,093 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Certificates      of deposit                                                                                                                    |   |   | 7,000 |   |   |   | - |   |
| Securities      available for sale, at fair value                                                                                               |   |   | 341,070 |   |   |   | 267,058 |   |
| Federal      Home Loan Bank stock, at cost                                                                                                      |   |   | 4,303 |   |   |   | 3,165 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Loans                                                                                                                                           |   |   | 622,079 |   |   |   | 571,741 |   |
| Less      allowance for loan losses                                                                                                             |   |   | (5,961 | ) |   |   | (3,637 | ) |
|            Loans,      net                                                               |   |   | 616,118 |   |   |   | 568,104 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Bank-owned      life insurance                                                                                                                  |   |   | 22,418 |   |   |   | 18,003 |   |
| Investment      in affiliate bank                                                                                                               |   |   | 10,518 |   |   |   | 10,772 |   |
| Premises      and equipment, net                                                                                                                |   |   | 22,432 |   |   |   | 22,816 |   |
| Accrued      interest receivable                                                                                                                |   |   | 6,174 |   |   |   | 5,764 |   |
| Other      assets                                                                                                                               |   |   | 5,675 |   |   |   | 4,451 |   |
|               Total      assets                                           |   | $ | 1,079,258 |   |   | $ | 1,003,226 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                       |
| Deposits:                                                                                                                                       |   |   |   |   |   |   |   |   |
| Non      interest-bearing                                                                                                                       |   | $ | 55,777 |   |   | $ | 51,396 |   |
| Interest-bearing                                                                                                                                |   |   | 747,044 |   |   |   | 723,050 |   |
| Total      deposits                                                                                                                             |   |   | 802,821 |   |   |   | 774,446 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Stock      subscriptions                                                                                                                        |   |   | - |   |   |   | 62,518 |   |
| Short-term      borrowings                                                                                                                      |   |   | - |   |   |   | 9,154 |   |
| Long-term      debt                                                                                                                             |   |   | 62,823 |   |   |   | 27,373 |   |
| Accrued      expenses and other liabilities                                                                                                     |   |   | 14,805 |   |   |   | 14,051 |   |
|               Total      liabilities                                      |   |   | 880,449 |   |   |   | 887,542 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Stockholders'      equity:                                                                                                                      |   |   |   |   |   |   |   |   |
|    Common      stock, no par value 50,000,000 shares                                                                             |   |   |   |   |   |   |   |   |
|     authorized;      23,000,000 and 0 shares issued and                                                                     |   |   |   |   |   |   |   |   |
|      outstanding      at June 30, 2008 and December 31, 2007                                                           |   |   | - |   |   |   | - |   |
|    Additional      paid-in capital                                                                                               |   |   | 100,630 |   |   |   | - |   |
|    Retained      earnings                                                                                                        |   |   | 104,998 |   |   |   | 109,177 |   |
|    Accumulated      other comprehensive income                                                                                   |   |   | 1,254 |   |   |   | 6,507 |   |
|    Unearned      compensation - ESOP, 807,300                                                                                    |   |   |   |   |   |   |   |   |
|      shares      and 0 shares at June 30, 2008                                                                         |   |   |   |   |   |   |   |   |
|      and      December 31, 2007, respectively                                                                          |   |   | (8,073 | ) |   |   | - |   |
|              Total      stockholders' equity                                   |   |   | 198,809 |   |   |   | 115,684 |   |
|                 Total      liabilities and stockholders' equity |   | $ | 1,079,258 |   |   | $ | 1,003,226 |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Statements of Operations                                                                                                   |
| (Unaudited)                                                                                                                                  |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   | Three      Months Ended June 30, |   |   | Six      Months Ended June 30, |   |
| (Dollars      in thousands)                                                                                                                  |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Interest      and dividend income:                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest      and fees on loans                                                                                      |   | $ | 9,334 |   |   | $ | 8,815 |   |   | $ | 18,517 |   |   | $ | 17,487 |   |
|     Interest      on debt securities                                                                                     |   |   | 2,633 |   |   |   | 2,792 |   |   |   | 5,245 |   |   |   | 5,549 |   |
|     Dividends      on equity securities                                                                                  |   |   | 434 |   |   |   | 265 |   |   |   | 691 |   |   |   | 544 |   |
|     Interest      on certificates of deposit                                                                             |   |   | 30 |   |   |   | - |   |   |   | 38 |   |   |   | - |   |
|     Interest      on federal funds sold                                                                                  |   |   | 478 |   |   |   | 208 |   |   |   | 1,541 |   |   |   | 395 |   |
|                Total      interest and dividend income            |   |   | 12,909 |   |   |   | 12,080 |   |   |   | 26,032 |   |   |   | 23,975 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest      on deposits                                                                                            |   |   | 6,426 |   |   |   | 6,307 |   |   |   | 13,337 |   |   |   | 12,423 |   |
|     Interest      on short-term borrowings                                                                               |   |   | 53 |   |   |   | 102 |   |   |   | 115 |   |   |   | 191 |   |
|     Interest      on long-term debt                                                                                      |   |   | 517 |   |   |   | 391 |   |   |   | 829 |   |   |   | 778 |   |
|                Total      interest expense                        |   |   | 6,996 |   |   |   | 6,800 |   |   |   | 14,281 |   |   |   | 13,392 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                     |   |   | 5,913 |   |   |   | 5,280 |   |   |   | 11,751 |   |   |   | 10,583 |   |
| Provision      for loan losses                                                                                                               |   |   | 2,197 |   |   |   | 71 |   |   |   | 2,328 |   |   |   | 143 |   |
|                Net      interest income, after provision          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     for      loan losses |   |   | 3,716 |   |   |   | 5,209 |   |   |   | 9,423 |   |   |   | 10,440 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      income:                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Customer      service fees                                                                                           |   |   | 697 |   |   |   | 710 |   |   |   | 1,355 |   |   |   | 1,312 |   |
|     Loan      fees                                                                                                       |   |   | 154 |   |   |   | 128 |   |   |   | 370 |   |   |   | 334 |   |
|     Gain      on sales of loans, net                                                                                     |   |   | 8 |   |   |   | 8 |   |   |   | 27 |   |   |   | 25 |   |
|     Gain      on sales of securities, net                                                                                |   |   | 47 |   |   |   | - |   |   |   | 2,313 |   |   |   | 2,032 |   |
|     Income      from bank-owned life insurance                                                                           |   |   | 230 |   |   |   | 535 |   |   |   | 415 |   |   |   | 697 |   |
|     Equity      loss on investment in affiliate bank                                                                     |   |   | (86 | ) |   |   | (128 | ) |   |   | (254 | ) |   |   | (211 | ) |
|                Total      non-interest income                     |   |   | 1,050 |   |   |   | 1,253 |   |   |   | 4,226 |   |   |   | 4,189 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      expenses:                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Salaries      and employee benefits                                                                                  |   |   | 5,762 |   |   |   | 3,414 |   |   |   | 9,784 |   |   |   | 7,086 |   |
|     Occupancy      and equipment                                                                                         |   |   | 699 |   |   |   | 622 |   |   |   | 1,479 |   |   |   | 1,324 |   |
|     Data      processing                                                                                                 |   |   | 406 |   |   |   | 369 |   |   |   | 793 |   |   |   | 732 |   |
|     Marketing                                                                                                            |   |   | 293 |   |   |   | 203 |   |   |   | 539 |   |   |   | 343 |   |
|     Professional      services                                                                                           |   |   | 623 |   |   |   | 240 |   |   |   | 967 |   |   |   | 459 |   |
|    Contribution      to the Meridian                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Charitable      Foundation                                                                               |   |   | - |   |   |   | - |   |   |   | 3,000 |   |   |   | - |   |
|     Other      general and administrative                                                                                |   |   | 693 |   |   |   | 389 |   |   |   | 1,226 |   |   |   | 829 |   |
|                Total      non-interest expenses                   |   |   | 8,476 |   |   |   | 5,237 |   |   |   | 17,788 |   |   |   | 10,773 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before income taxes                                                                                                       |   |   | (3,710 | ) |   |   | 1,225 |   |   |   | (4,139 | ) |   |   | 3,856 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      (benefit) for income taxes                                                                                                    |   |   | (1,494 | ) |   |   | 429 |   |   |   | (1,602 | ) |   |   | 1,265 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                Net      income (loss)                             |   | $ | (2,216 | ) |   | $ | 796 |   |   | $ | (2,537 | ) |   | $ | 2,591 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      per share:                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 Basic                                        |   | $ | (0.10 | ) |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                 Diluted                                      |   | $ | (0.10 | ) |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Shares:                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 Basic                                        |   |   | 22,185,914 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                 Diluted                                      |   |   | 22,185,914 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                  |
|------------------------------------------------------------------------------------------|
| Net      Interest Income Analysis                                                        |
| (Unaudited)                                                                              |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | For      The Three Months Ended June 30, |   |
|                                                                                     | 2008 |   | 2007 |   |
| (Dollars      in thousands)                                                              |   | AverageBalance |   |   | InterestEarned/Paid |   |   | Yield/Cost      (4) |   |   | AverageBalance |   |   | InterestEarned/Paid |   |   | Yield/Cost      (4) |   |
| Assets:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      (1)                                                         |   | $ | 604,227 |   |   | $ | 9,334 |   |   |   | 6.21 | % |   | $ | 538,720 |   |   | $ | 8,815 |   |   |   | 6.56 | % |
|    Securities      and certificates of deposit                            |   |   | 310,094 |   |   |   | 3,097 |   |   |   | 4.02 |   |   |   | 278,410 |   |   |   | 3,057 |   |   |   | 4.40 |   |
|    Other      interest-earning assets                                     |   |   | 96,801 |   |   | 478 |   |   |   | 1.99 |   |   |   | 16,076 |   |   | 208 |   |   |   | 5.19 |   |
|          Total      interest-earning assets |   |   | 1,011,122 |   |   |   | 12,909 |   |   |   | 5.13 |   |   |   | 833,206 |   |   |   | 12,080 |   |   |   | 5.82 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                                          |   |   | 76,288 |   |   |   |   |   |   |   |   |   |   |   | 68,230 |   |   |   |   |   |   |   |   |   |
|          Total      assets                  |   | $ | 1,087,410 |   |   |   |   |   |   |   |   |   |   | $ | 901,436 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    NOW  deposits                                                |   | $ | 39,530 |   |   |   | 79 |   |   |   | 0.80 |   |   | $ | 34,289 |   |   |   | 33 |   |   |   | 0.39 |   |
|    Money      market deposits                                             |   |   | 143,566 |   |   |   | 885 |   |   |   | 2.48 |   |   |   | 103,936 |   |   |   | 891 |   |   |   | 3.44 |   |
|    Savings      and other deposits                                        |   |   | 123,801 |   |   |   | 351 |   |   |   | 1.14 |   |   |   | 132,958 |   |   |   | 380 |   |   |   | 1.15 |   |
|    Certificates      of deposit                                           |   |   | 448,618 |   |   | 5,111 |   |   |   | 4.58 |   |   |   | 414,495 |   |   | 5,003 |   |   |   | 4.84 |   |
|       Total      interest-bearing deposits                 |   |   | 755,515 |   |   |   | 6,426 |   |   |   | 3.42 |   |   |   | 685,678 |   |   |   | 6,307 |   |   |   | 3.69 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                     |   |   | 64,070 |   |   | 570 |   |   |   | 3.58 |   |   |   | 41,263 |   |   | 493 |   |   |   | 4.79 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      interest-bearing liabilities              |   |   | 819,585 |   |   |   | 6,996 |   |   |   | 3.43 |   |   |   | 726,941 |   |   |   | 6,800 |   |   |   | 3.75 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      demand deposits                               |   |   | 55,299 |   |   |   |   |   |   |   |   |   |   |   | 53,890 |   |   |   |   |   |   |   |   |   |
|    Other      noninterest-bearing liabilities                             |   |   | 9,647 |   |   |   |   |   |   |   |   |   |   |   | 7,598 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities             |   |   | 884,531 |   |   |   |   |   |   |   |   |   |   |   | 788,429 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      stockholders' equity                      |   |   | 202,879 |   |   |   |   |   |   |   |   |   |   |   | 113,007 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders' equity      |   | $ | 1,087,410 |   |   |   |   |   |   |   |   |   |   | $ | 901,436 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest income                                               |   |   |   |   |   | $ | 5,913 |   |   |   |   |   |   |   |   |   |   | $ | 5,280 |   |   |   |   |   |
|    Interest      rate spread  (2)                               |   |   |   |   |   |   |   |   |   |   | 1.70 | % |   |   |   |   |   |   |   |   |   |   | 2.07 | % |
|    Net      interest margin  (3)                                |   |   |   |   |   |   |   |   |   |   | 2.35 | % |   |   |   |   |   |   |   |   |   |   | 2.54 | % |
|    Average      interest-earning assets to                                |   |   |   |   |   |   | 123.37 | % |   |   |   |   |   |   |   |   |   |   | 114.62 | % |   |   |   |   |
|       average      interest-bearing liabilities            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                      |   |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|
| (1)      Loans on non accrual status are included in average    balances. |   |   |   |   |

|                                                                                                          |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| (2)      Interest rate spread represents the difference between the yield on      interest-earning assets and |   |

|     the      cost of interest-bearing liabilities. |   |   |   |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                  |
|------------------------------------------------------------------------------------------|
| Net      Interest Income Analysis                                                        |
| (Unaudited)                                                                              |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | For      The Six Months Ended June 30, |   |
|                                                                                     |   | 2008 |   |   | 2007 |   |
| (Dollars      in thousands)                                                              |   | AverageBalance |   |   | Interest      Earned/Paid |   |   | Yield/ Cost      (4) |   |   | Average      Balance |   |   | Interest      Earned/Paid |   |   | Yield/ Cost      (4) |   |
| Assets:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      (1)                                                         |   | $ | 585,481 |   |   | $ | 18,517 |   |   |   | 6.36 | % |   | $ | 538,719 |   |   | $ | 17,487 |   |   |   | 6.49 | % |
|    Securities      and certificates of deposit                            |   |   | 285,088 |   |   |   | 5,974 |   |   |   | 4.21 |   |   |   | 279,757 |   |   |   | 6,093 |   |   |   | 4.36 |   |
|    Other      interest-earning assets                                     |   |   | 117,636 |   |   |   | 1,541 |   |   |   | 2.63 |   |   |   | 15,214 |   |   |   | 395 |   |   |   | 5.23 |   |
|          Total      interest-earning assets |   |   | 988,205 |   |   |   | 26,032 |   |   |   | 5.30 |   |   |   | 833,690 |   |   |   | 23,975 |   |   |   | 5.75 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                                          |   |   | 75,438 |   |   |   |   |   |   |   |   |   |   |   | 65,911 |   |   |   |   |   |   |   |   |   |
|          Total      assets                  |   | $ | 1,063,643 |   |   |   |   |   |   |   |   |   |   | $ | 899,601 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    NOW  deposits                                                |   | $ | 37,225 |   |   |   | 147 |   |   |   | 0.79 |   |   | $ | 64,040 |   |   |   | 47 |   |   |   | 0.15 |   |
|    Money      market deposits                                             |   |   | 141,844 |   |   |   | 2,038 |   |   |   | 2.89 |   |   |   | 101,208 |   |   |   | 1,709 |   |   |   | 3.40 |   |
|    Savings      and other deposits                                        |   |   | 132,122 |   |   |   | 746 |   |   |   | 1.14 |   |   |   | 133,149 |   |   |   | 771 |   |   |   | 1.17 |   |
|    Certificates      of deposit                                           |   |   | 447,243 |   |   |   | 10,406 |   |   |   | 4.68 |   |   |   | 417,620 |   |   |   | 9,896 |   |   |   | 4.78 |   |
|       Total      interest-bearing deposits                 |   |   | 758,434 |   |   |   | 13,337 |   |   |   | 3.54 |   |   |   | 716,017 |   |   |   | 12,423 |   |   |   | 3.50 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                     |   |   | 49,992 |   |   |   | 944 |   |   |   | 3.80 |   |   |   | 40,823 |   |   |   | 969 |   |   |   | 4.79 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      interest-bearing liabilities              |   |   | 808,426 |   |   |   | 14,281 |   |   |   | 3.55 |   |   |   | 756,840 |   |   |   | 13,392 |   |   |   | 3.57 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      demand deposits                               |   |   | 53,550 |   |   |   |   |   |   |   |   |   |   |   | 23,851 |   |   |   |   |   |   |   |   |   |
|    Other      noninterest-bearing liabilities                             |   |   | 9,215 |   |   |   |   |   |   |   |   |   |   |   | 7,002 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities             |   |   | 871,191 |   |   |   |   |   |   |   |   |   |   |   | 787,693 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      stockholders' equity                      |   |   | 192,452 |   |   |   |   |   |   |   |   |   |   |   | 111,908 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders' equity      |   | $ | 1,063,643 |   |   |   |   |   |   |   |   |   |   | $ | 899,601 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest income                                               |   |   |   |   |   | $ | 11,751 |   |   |   |   |   |   |   |   |   |   | $ | 10,583 |   |   |   |   |   |
|    Interest      rate spread  (2)                               |   |   |   |   |   |   |   |   |   |   | 1.75 | % |   |   |   |   |   |   |   |   |   |   | 2.18 | % |
|    Net      interest margin  (3)                                |   |   |   |   |   |   |   |   |   |   | 2.39 | % |   |   |   |   |   |   |   |   |   |   | 2.54 | % |
|    Average      interest-earning assets to                                |   |   |   |   |   |   | 122.24 | % |   |   |   |   |   |   |   |   |   |   | 110.15 | % |   |   |   |   |
|       average      interest-bearing liabilities            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)      Loans on non accrual status are included in average    balances. |   |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|

|                                                                                                          |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| (2)      Interest rate spread represents the difference between the yield on      interest-earning assets and |   |

|     the      cost of interest-bearing liabilities. |   |   |   |   |   |   |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES     |
|-------------------------------------------------------------|
| Financial      Ratios                                       |
| (Unaudited)                                                 |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |
|                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Key      Performance Ratios                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average assets (4)                           |   |   | (0.82 | )      % |   |   | 0.35 | % |   |   | (0.48 | )      % |   |   | 0.58 | % |
| Return      on average equity (4)                           |   |   | (4.37 | ) |   |   | 2.82 |   |   |   | (2.64 | ) |   |   | 4.63 |   |
| Interest      rate spread  (1) (4)                |   |   | 1.70 |   |   |   | 2.07 |   |   |   | 1.75 |   |   |   | 2.18 |   |
| Net      interest margin  (2) (4)                 |   |   | 2.35 |   |   |   | 2.54 |   |   |   | 2.39 |   |   |   | 2.54 |   |
| Noninterest      expense to average assets  (4)   |   |   | 3.12 |   |   |   | 2.32 |   |   |   | 3.34 |   |   |   | 2.40 |   |
| Efficiency      ratio (3)                                   |   |   | 121.73 |   |   |   | 80.16 |   |   |   | 111.34 |   |   |   | 72.93 |   |
| Average      interest-earning assets to                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    average      interest-bearing liabilities |   |   | 123.37 |   |   |   | 114.62 |   |   |   | 122.24 |   |   |   | 110.15 |   |

| (1)      Interest rate spread represents the difference between the yield on      interest-earning assets                               |
|-----------------------------------------------------------------------------------------------------------------------------------------|
|      and      the cost of interest-bearing liabilities.                                                        |
|                                                                                                                                    |
| (2)      Net interest margin represents net interest income divided by average      interest-earning assets.                            |
|                                                                                                                                    |
| (3)      The efficiency ratio represents non-interest expense, divided by the sum      of net interest income plus non-interest income. |
|                                                                                                                                    |
| (4)      Annualized.                                                                                                                    |

|                                               |   | At            |   |   | At                |   |   | At            |   |
|----------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|--------|---------------|--------|
|                                               |   | June      30, |   |   | December      31, |   |   | June      30, |   |
|                                               |   | 2008          |   |   | 2007              |   |   | 2007          |   |
| Asset      Quality Ratios                          |   |          |   |   |              |   |   |          |   |
| Allowance      for loan losses/total loans         |   |          | 0.96   | %      |              |   | 0.63   | %             |   |   | 0.64 | % |
| Allowance      for loan losses/nonperforming loans |   |          | 78.64  |   |              |   | 73.00  |          |   |   | 49.95 |   |
|                                               |   |          |   |   |              |   |   |          |   |   |   |   |
| Non-performing      loans/total loans              |   |          | 1.22   |   |              |   | 0.87   |          |   |   | 1.28 |   |
| Non-performing      loans/total assets             |   |          | 0.70   |   |              |   | 0.50   |          |   |   | 0.77 |   |
| Non-performing      assets /total assets           |   |          | 0.70   |   |              |   | 0.55   |          |   |   | 0.77 |   |