----

----

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Balance Sheets                                                                                                    |
| (Unaudited)                                                                                                                         |
|                                                                                                                                |   |   |   |   |   |   |
|                                                                                                                                |   | March      31, |   | December      31, |   |
| (In      thousands)                                                                                                                 |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                                              |   |   |   |   |   |   |
| Cash      and due from banks                                                                                                        |   | $ | 11,583 |   |   | $ | 11,821 |   |
| Federal      funds sold                                                                                                             |   |   | 141,364 |   |   |   | 91,272 |   |
|           Total      cash and cash equivalents                                    |   |   | 152,947 |   |   |   | 103,093 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Securities      available for sale, at fair value                                                                                   |   |   | 253,045 |   |   |   | 267,058 |   |
| Federal      Home Loan Bank stock, at cost                                                                                          |   |   | 3,164 |   |   |   | 3,165 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Loans                                                                                                                               |   |   | 583,168 |   |   |   | 571,741 |   |
| Less      allowance for loan losses                                                                                                 |   |   | (3,768 | ) |   |   | (3,637 | ) |
|            Loans,      net                                                   |   |   | 579,400 |   |   |   | 568,104 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Bank-owned      life insurance                                                                                                      |   |   | 22,188 |   |   |   | 18,003 |   |
| Investment      in affiliate bank                                                                                                   |   |   | 10,604 |   |   |   | 10,772 |   |
| Premises      and equipment, net                                                                                                    |   |   | 22,629 |   |   |   | 22,816 |   |
| Accrued      interest receivable                                                                                                    |   |   | 5,250 |   |   |   | 5,764 |   |
| Other      assets                                                                                                                   |   |   | 4,614 |   |   |   | 4,451 |   |
|               Total      assets                               |   | $ | 1,053,841 |   |   | $ | 1,003,226 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                           |   |   |   |   |
| Deposits:                                                                                                                           |   |   |   |   |   |   |   |   |
| Non      interest-bearing                                                                                                           |   | $ | 53,499 |   |   | $ | 51,396 |   |
| Interest-bearing                                                                                                                    |   |   | 752,095 |   |   |   | 723,050 |   |
| Total      deposits                                                                                                                 |   |   | 805,594 |   |   |   | 774,446 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Stock      subscriptions                                                                                                            |   |   | - |   |   |   | 62,518 |   |
| Short-term      borrowings                                                                                                          |   |   | 9,154 |   |   |   | 9,154 |   |
| Long-term      debt                                                                                                                 |   |   | 21,073 |   |   |   | 27,373 |   |
| Accrued      expenses and other liabilities                                                                                         |   |   | 14,555 |   |   |   | 14,051 |   |
|               Total      liabilities                          |   |   | 850,376 |   |   |   | 887,542 |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Stockholders'      Equity:                                                                                                          |   |   |   |   |   |   |   |   |
| Common      stock, no par value 50,000,000                                                                                          |   |   |   |   |   |
| shares      authorized; 23,000,000 and 0 shares                                                                                     |   |   |   |   |   |
| issued      and outstanding at March 31, 2008                                                                                       |   |   |   |   |   |
|      and      December 31, 2007, respectively                                                              |   |   | - |   |   |   | - |   |
|    Additional      paid-in capital                                                                                   |   |   | 100,628 |   |   |   | - |   |
|    Retained      earnings                                                                                            |   |   | 107,214 |   |   |   | 109,177 |   |
|    Accumulated      other comprehensive income                                                                       |   |   | 3,799 |   |   |   | 6,507 |   |
| Unearned      compensation - ESOP, 817,650                                                                                          |   |   |   |   |   |
| shares      and 0 shares at March 31, 2008                                                                                          |   |   |   |   |   |
|      and      December 31, 2007, respectively                                                              |   |   | (8,176 | ) |   |   | - |   |
| Total      stockholders' equity                                                                                                     |   |   | 203,465 |   |   |   | 115,684 |   |
|               Total      liabilities and stockholders' equity |   | $ | 1,053,841 |   |   | $ | 1,003,226 |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                                      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated      Statements of Operations                                                                                                   |   |
| (Unaudited)                                                                                                                                  |   |
|                                                                                                                                         |   |
|                                                                                                                                         |   | Three      Months Ended March 31, |   |
| (In      thousands)                                                                                                                          |   | 2008 |   |   | 2007 |   |
| Interest      and dividend income:                                                                                                           |   |   |   |   |   |   |
|     Interest      and fees on loans                                                                                      |   | $ | 9,183 |   |   | $ | 8,672 |   |
|     Interest      on debt securities                                                                                     |   |   | 2,612 |   |   |   | 2,757 |   |
|     Dividends      on equity securities                                                                                  |   |   | 265 |   |   |   | 279 |   |
|     Interest      on federal funds sold                                                                                  |   |   | 1,063 |   |   |   | 187 |   |
|                Total      interest and dividend income            |   |   | 13,123 |   |   |   | 11,895 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Interest      expense:                                                                                                                       |   |   |   |   |   |   |   |   |
|     Interest      on deposits                                                                                            |   |   | 6,911 |   |   |   | 6,116 |   |
|     Interest      on short-term borrowings                                                                               |   |   | 62 |   |   |   | 89 |   |
|     Interest      on long-term debt                                                                                      |   |   | 312 |   |   |   | 387 |   |
|                Total      interest expense                        |   |   | 7,285 |   |   |   | 6,592 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                     |   |   | 5,838 |   |   |   | 5,303 |   |
| Provision      for loan losses                                                                                                               |   |   | 131 |   |   |   | 72 |   |
| Net      interest income, after provision                                                                                                    |   |   |   |   |   |
|                     for      loan losses |   |   | 5,707 |   |   |   | 5,231 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Non-interest      income:                                                                                                                    |   |   |   |   |   |   |   |   |
|     Customer      service fees                                                                                           |   |   | 696 |   |   |   | 637 |   |
|     Loan      fees                                                                                                       |   |   | 178 |   |   |   | 171 |   |
|     Gain      on sales of loans, net                                                                                     |   |   | 19 |   |   |   | 17 |   |
|     Gain      on sales of securities, net                                                                                |   |   | 2,266 |   |   |   | 2,032 |   |
|     Income      from bank-owned life insurance                                                                           |   |   | 185 |   |   |   | 162 |   |
|     Equity      loss on investment in affiliate bank                                                                     |   |   | (168 | ) |   |   | (83 | ) |
|                Total      non-interest income                     |   |   | 3,176 |   |   |   | 2,936 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Non-interest      expenses:                                                                                                                  |   |   |   |   |   |   |   |   |
|     Salaries      and employee benefits                                                                                  |   |   | 4,092 |   |   |   | 3,736 |   |
|     Occupancy      and equipment                                                                                         |   |   | 780 |   |   |   | 702 |   |
|     Data      processing                                                                                                 |   |   | 387 |   |   |   | 363 |   |
|     Marketing                                                                                                            |   |   | 246 |   |   |   | 140 |   |
|     Professional      services                                                                                           |   |   | 309 |   |   |   | 155 |   |
|    Contribution      to the Meridian                                                                                          |   |   |   |   |   |   |   |   |
|       Charitable      Foundation                                                                               |   |   | 3,000 |   |   |   | - |   |
|     Other      general and administrative                                                                                |   |   | 498 |   |   |   | 440 |   |
|                Total      non-interest expenses                   |   |   | 9,312 |   |   |   | 5,536 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Income      (loss) before income taxes                                                                                                       |   |   | (429 | ) |   |   | 2,631 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
| Provision      (benefit) for income taxes                                                                                                    |   |   | (108 | ) |   |   | 836 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |
|                Net      income (loss)                             |   | $ | (321 | ) |   | $ | 1,795 |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                  |
|------------------------------------------------------------------------------------------|
| Net      Interest Income Analysis                                                        |
| (Unaudited)                                                                              |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | For      The Three Months Ended March 31, |   |
|                                                                                     |   | 2008 |   | 2007 |   |
| (Dollars      in thousands)                                                              |   | Average      Balance |   |   | InterestEarned/Paid |   |   | Yield/ Cost      (4) |   |   | AverageBalance |   |   | Interest      Earned/Paid |   |   | Yield/ Cost      (4) |   |
| Assets:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      (1)                                                         |   | $ | 567,832 |   |   | $ | 9,183 |   |   |   | 6.50 | % |   | $ | 537,640 |   |   | $ | 8,672 |   |   |   | 6.54 | % |
|    Securities                                                             |   |   | 259,907 |   |   |   | 2,877 |   |   |   | 4.45 |   |   |   | 281,120 |   |   |   | 3,036 |   |   |   | 4.38 |   |
|    Other      interest-earning assets                                     |   |   | 138,471 |   |   |   | 1,063 |   |   |   | 3.09 |   |   |   | 14,342 |   |   |   | 187 |   |   |   | 5.28 |   |
|          Total      interest-earning assets |   |   | 966,210 |   |   |   | 13,123 |   |   |   | 5.46 |   |   |   | 833,102 |   |   |   | 11,895 |   |   |   | 5.79 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                                          |   |   | 74,585 |   |   |   |   |   |   |   |   |   |   |   | 66,576 |   |   |   |   |   |   |   |   |   |
|          Total      assets                  |   | $ | 1,040,795 |   |   |   |   |   |   |   |   |   |   | $ | 899,678 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    NOW  deposits                                                |   | $ | 37,511 |   |   | $ | 68 |   |   |   | 0.72 | % |   | $ | 37,671 |   |   | $ | 28 |   |   |   | 0.30 | % |
|    Money      market deposits                                             |   |   | 140,123 |   |   |   | 1,153 |   |   |   | 3.30 |   |   |   | 98,450 |   |   |   | 817 |   |   |   | 3.37 |   |
|    Regular      and other deposits                                        |   |   | 145,970 |   |   |   | 395 |   |   |   | 1.09 |   |   |   | 130,960 |   |   |   | 378 |   |   |   | 1.17 |   |
|    Certificates      of deposit                                           |   |   | 445,869 |   |   | 5,295 |   |   |   | 4.78 |   |   |   | 420,780 |   |   | 4,893 |   |   |   | 4.72 |   |
|       Total      interest-bearing deposits                 |   |   | 769,473 |   |   |   | 6,911 |   |   |   | 3.61 |   |   |   | 687,861 |   |   |   | 6,116 |   |   |   | 3.61 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                     |   |   | 35,913 |   |   | 374 |   |   |   | 4.19 |   |   |   | 40,378 |   |   | 476 |   |   |   | 4.78 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      interest-bearing liabilities              |   |   | 805,386 |   |   |   | 7,285 |   |   |   | 3.64 |   |   |   | 728,239 |   |   |   | 6,592 |   |   |   | 3.67 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      demand deposits                               |   |   | 51,801 |   |   |   |   |   |   |   |   |   |   |   | 52,309 |   |   |   |   |   |   |   |   |   |
|    Other      noninterest-bearing liabilities                             |   |   | 24,033 |   |   |   |   |   |   |   |   |   |   |   | 8,237 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities             |   |   | 881,220 |   |   |   |   |   |   |   |   |   |   |   | 788,785 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      stockholders' equity                      |   |   | 159,575 |   |   |   |   |   |   |   |   |   |   |   | 110,893 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders' equity      |   | $ | 1,040,795 |   |   |   |   |   |   |   |   |   |   | $ | 899,678 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest income                                               |   |   |   |   |   | $ | 5,838 |   |   |   |   |   |   |   |   |   |   | $ | 5,303 |   |   |   |   |   |
|    Interest      rate spread  (2)                               |   |   |   |   |   |   |   |   |   |   | 1.82 | % |   |   |   |   |   |   |   |   |   |   | 2.12 | % |
|    Net      interest margin  (3)                                |   |   |   |   |   |   |   |   |   |   | 2.43 | % |   |   |   |   |   |   |   |   |   |   | 2.58 | % |
|    Average      interest-earning assets to                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       average      interest-bearing liabilities            |   |   |   |   |   |   | 119.97 | % |   |   |   |   |   |   |   |   |   |   | 114.40 | % |   |   |   |   |

| (1)      Loans on non accrual status are included in average    balances.                                      |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                           |   |   |   |   |   |
| (2)      Interest rate spread represents the difference betweent the yield on      interest-earning assets and |   |
|            the cost of interest-bearing liabilities.                                  |   |   |   |   |   |   |   |
|                                                                                                           |   |   |   |   |   |   |   |
| (3)      Net interest margin represents net interest income divided by average      interest-earning assets.   |   |
|                                                                                                           |   |
| (4)      Yields are annualized.                                                                                |   |   |   |   |   |   |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES     |
|-------------------------------------------------------------|
| Financial      Ratios                                       |
| (Unaudited)                                                 |
|                                                        |   |   |   |   |   |   |
|                                                        |   | Three      Months Ended March 31, |   |
|                                                        |   | 2008 |   |   | 2007 |   |
| Key      Performance Ratios                                 |   |   |   |   |   |   |
| Return      on average assets                               |   |   | (0.03 | )      % |   |   | 0.20 | % |
| Return      on average equity                               |   |   | (0.20 | ) |   |   | 1.62 |   |
| Interest      rate spread  (1)                    |   |   | 1.82 |   |   |   | 2.12 |   |
| Net      interest margin  (2)                     |   |   | 2.43 |   |   |   | 2.58 |   |
| Noninterest      expense to average assets                  |   |   | 0.89 |   |   |   | 0.62 |   |
| Efficiency      ratio (3)                                   |   |   | 103.31 |   |   |   | 67.19 |   |
| Average      interest-earning assets to                     |   |   |   |   |   |   |   |   |
|    average      interest-bearing liabilities |   |   | 119.97 |   |   |   | 114.40 |   |
|                                                        |   |   |   |   |   |   |   |   |
| Capital      Ratios                                         |   |   |   |   |   |   |   |   |
| Average      equity to average assets                       |   |   | 15.33 |   |   |   | 12.33 |   |

| (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, including the      Company's                                 |
|       contribution      to the Meridian Charitable Foundation, divided by the sum of      net |
|       interest      income before loan loss provision plus non-interest  income.              |

| Return      on average assets |   |   | -0.03 | %       |   |   | 0.20 | %       |
|-------------------------------|--------|--------|-------|---------|--------|--------|------|---------|
| Return      on average equity |   |   | -0.20 | %  |   |   | 1.62 | %  |

|                                                      |   | At                                     |   |   | At                                        |   |   | At                                   |   |
|-----------------------------------------------------------|--------|----------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                      |   | March      31,                         |   |   | December      31,                         |   |   | March      31,                       |   |
|                                                      |   | 2008                                   |   |   | 2007                                      |   |   | 2007                                 |   |
| Asset      Quality Ratios                                 |   |                                   |   |   |                                      |   |   |                                 |   |
| Allowance      for loan losses/total loans                |   |                                   | 0.64   | %      |                                      |   | 0.63   | %                                    |   |   | 0.63 | % |
| Allowance      for loan losses/nonperforming loans        |   |                                   | 127.95 |   |                                      |   | 73.00  |                                 |   |   | 55.10 |   |
|                                                      |   |                                   |   |   |                                      |   |   |                                 |   |   |   |   |
| Non-performing      loans/total loans                     |   |                                   | 0.50   |   |                                      |   | 0.87   |                                 |   |   | 1.15 |   |
| Non-performing      loans/total assets                    |   |                                   | 0.28   |   |                                      |   | 0.50   |                                 |   |   | 0.69 |   |
| Non-performing      assets /total assets                  |   |                                   | 0.39   |   |                                      |   | 0.55   |                                 |   |   | 0.69 |   |
|                                                      |   |                                   |   |   |                                      |   |   |                                 |   |   |   |   |
|                                                      |   | Three      Months Ended March 31, 2008 |   |   | Twelve      Months EndedDecember 31, 2007 |   |   | Three      MonthsEndedMarch 31, 2007 |   |
| Net      charge-offs (recovery)/average loans outstanding |   |                                   | 0.00   |   |                                      |   | 0.03   |                                 |   |   | 0.00 |   |