----

----

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Balance Sheets                                                                                                                |
| (Unaudited)                                                                                                                                     |
|                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                            |   | September      30, |   |   | December      31, |   |
| (Dollars      in thousands)                                                                                                                     |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                                                          |
| Cash      and due from banks                                                                                                                    |   | $ | 15,934 |   |   | $ | 11,821 |   |
| Federal      funds sold                                                                                                                         |   |   | 23,550 |   |   |   | 91,272 |   |
|           Total      cash and cash equivalents                                                |   |   | 39,484 |   |   |   | 103,093 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Certificates      of deposit                                                                                                                    |   |   | 7,000 |   |   |   | - |   |
| Securities      available for sale, at fair value                                                                                               |   |   | 288,941 |   |   |   | 267,058 |   |
| Federal      Home Loan Bank stock, at cost                                                                                                      |   |   | 4,303 |   |   |   | 3,165 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Loans                                                                                                                                           |   |   | 667,608 |   |   |   | 571,741 |   |
| Less      allowance for loan losses                                                                                                             |   |   | (5,718 | ) |   |   | (3,637 | ) |
|            Loans,      net                                                               |   |   | 661,890 |   |   |   | 568,104 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Bank-owned      life insurance                                                                                                                  |   |   | 22,627 |   |   |   | 18,003 |   |
| Investment      in affiliate bank                                                                                                               |   |   | 10,449 |   |   |   | 10,772 |   |
| Premises      and equipment, net                                                                                                                |   |   | 22,575 |   |   |   | 22,816 |   |
| Accrued      interest receivable                                                                                                                |   |   | 5,627 |   |   |   | 5,764 |   |
| Foreclosed      real estate                                                                                                                     |   |   | 2,045 |   |   |   | 560 |   |
| Other      assets                                                                                                                               |   |   | 8,742 |   |   |   | 3,891 |   |
|               Total      assets                                           |   | $ | 1,073,683 |   |   | $ | 1,003,226 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                       |
| Deposits:                                                                                                                                       |   |   |   |   |   |   |   |   |
| Non      interest-bearing                                                                                                                       |   | $ | 56,805 |   |   | $ | 51,396 |   |
| Interest-bearing                                                                                                                                |   |   | 748,279 |   |   |   | 723,050 |   |
| Total      deposits                                                                                                                             |   |   | 805,084 |   |   |   | 774,446 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Stock      subscriptions                                                                                                                        |   |   | - |   |   |   | 62,518 |   |
| Short-term      borrowings                                                                                                                      |   |   | - |   |   |   | 9,154 |   |
| Long-term      debt                                                                                                                             |   |   | 57,675 |   |   |   | 27,373 |   |
| Accrued      expenses and other liabilities                                                                                                     |   |   | 15,870 |   |   |   | 14,051 |   |
|               Total      liabilities                                      |   |   | 878,629 |   |   |   | 887,542 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |
| Stockholders'      equity:                                                                                                                      |   |   |   |   |   |   |   |   |
| Common      stock, no par value 50,000,000 shares authorized;                                                                                   |   |   |   |   |   |
| 23,000,000      and 0 shares issued and outstanding                                                                                             |   |   |   |   |   |
|     at      September 30, 2008 and December 31, 2007                                                                        |   |   | - |   |   |   | - |   |
| Additional      paid-in capital                                                                                                                 |   |   | 100,628 |   |   |   | - |   |
| Retained      earnings                                                                                                                          |   |   | 107,141 |   |   |   | 109,177 |   |
| Accumulated      other comprehensive income (loss)                                                                                              |   |   | (4,745 | ) |   |   | 6,507 |   |
| Unearned      compensation - ESOP, 796,950 shares and 0 shares                                                                                  |   |
|       at      September 30, 2008 and December 31, 2007, respectively                                              |   |   | (7,970 | ) |   |   | - |   |
|              Total      stockholders' equity                                   |   |   | 195,054 |   |   |   | 115,684 |   |
|                 Total      liabilities and stockholders' equity |   | $ | 1,073,683 |   |   | $ | 1,003,226 |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------|
| Consolidated      Statements of Operations                                                                                                   |
| (Unaudited)                                                                                                                                  |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   | Three      Months EndedSeptember 30, |   |   | Nine      Months EndedSeptember 30, |   |
| (Dollars      in thousands, except per share amounts)                                                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Interest      and dividend income:                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest      and fees on loans                                                                                      |   | $ | 9,938 |   |   | $ | 9,073 |   |   | $ | 28,455 |   |   | $ | 26,560 |   |
|     Interest      on debt securities                                                                                     |   |   | 2,674 |   |   |   | 2,715 |   |   |   | 7,919 |   |   |   | 8,264 |   |
|     Dividends      on equity securities                                                                                  |   |   | 573 |   |   |   | 271 |   |   |   | 1,264 |   |   |   | 815 |   |
|     Interest      on certificates of deposit                                                                             |   |   | 60 |   |   |   | - |   |   |   | 98 |   |   |   | - |   |
|     Interest      on federal funds sold                                                                                  |   |   | 99 |   |   |   | 331 |   |   |   | 1,640 |   |   |   | 726 |   |
|                Total      interest and dividend income            |   |   | 13,344 |   |   |   | 12,390 |   |   |   | 39,376 |   |   |   | 36,365 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest      on deposits                                                                                            |   |   | 6,045 |   |   |   | 6,736 |   |   |   | 19,382 |   |   |   | 19,159 |   |
|     Interest      on short-term borrowings                                                                               |   |   | - |   |   |   | 97 |   |   |   | 115 |   |   |   | 288 |   |
|     Interest      on long-term debt                                                                                      |   |   | 534 |   |   |   | 370 |   |   |   | 1,363 |   |   |   | 1,148 |   |
|                Total      interest expense                        |   |   | 6,579 |   |   |   | 7,203 |   |   |   | 20,860 |   |   |   | 20,595 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                                                                                                     |   |   | 6,765 |   |   |   | 5,187 |   |   |   | 18,516 |   |   |   | 15,770 |   |
| Provision      for loan losses                                                                                                               |   |   | 403 |   |   |   | 117 |   |   |   | 2,731 |   |   |   | 260 |   |
|                Net      interest income, after provision          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     for      loan losses |   |   | 6,362 |   |   |   | 5,070 |   |   |   | 15,785 |   |   |   | 15,510 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      income:                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Customer      service fees                                                                                           |   |   | 718 |   |   |   | 710 |   |   |   | 2,073 |   |   |   | 2,022 |   |
|     Loan      fees                                                                                                       |   |   | 181 |   |   |   | 152 |   |   |   | 551 |   |   |   | 486 |   |
|     Gain      (loss) on sales of loans, net                                                                              |   |   | (10 | ) |   |   | (6 | ) |   |   | 17 |   |   |   | 19 |   |
|     Gain      (loss) on sales of securities, net                                                                         |   |   | 2,779 |   |   |   | (860 | ) |   |   | 5,092 |   |   |   | 1,172 |   |
|     Income      from bank-owned life insurance                                                                           |   |   | 209 |   |   |   | 153 |   |   |   | 624 |   |   |   | 850 |   |
|     Equity      loss on investment in affiliate bank                                                                     |   |   | (69 | ) |   |   | (138 | ) |   |   | (323 | ) |   |   | (349 | ) |
|                Total      non-interest income                     |   |   | 3,808 |   |   |   | 11 |   |   |   | 8,034 |   |   |   | 4,200 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest      expenses:                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Salaries      and employee benefits                                                                                  |   |   | 4,009 |   |   |   | 3,618 |   |   |   | 13,793 |   |   |   | 10,704 |   |
|     Occupancy      and equipment                                                                                         |   |   | 719 |   |   |   | 608 |   |   |   | 2,198 |   |   |   | 1,932 |   |
|     Data      processing                                                                                                 |   |   | 450 |   |   |   | 368 |   |   |   | 1,243 |   |   |   | 1,100 |   |
|     Marketing                                                                                                            |   |   | 293 |   |   |   | 282 |   |   |   | 832 |   |   |   | 625 |   |
|     Professional      services                                                                                           |   |   | 595 |   |   |   | 278 |   |   |   | 1,562 |   |   |   | 737 |   |
|    Contribution      to the Meridian                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Charitable      Foundation                                                                               |   |   | - |   |   |   | - |   |   |   | 3,000 |   |   |   | - |   |
|     Other      general and administrative                                                                                |   |   | 733 |   |   |   | 553 |   |   |   | 1,959 |   |   |   | 1,382 |   |
|                Total      non-interest expenses                   |   |   | 6,799 |   |   |   | 5,707 |   |   |   | 24,587 |   |   |   | 16,480 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before income taxes                                                                                                       |   |   | 3,371 |   |   |   | (626 | ) |   |   | (768 | ) |   |   | 3,230 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      (benefit) for income taxes                                                                                                    |   |   | 1,228 |   |   |   | (323 | ) |   |   | (374 | ) |   |   | 942 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                Net      income (loss)                             |   | $ | 2,143 |   |   | $ | (303 | ) |   | $ | (394 | ) |   | $ | 2,288 |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      per share:                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 Basic                                        |   | $ | 0.10 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                 Diluted                                      |   | $ | 0.10 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Shares:                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 Basic                                        |   |   | 22,196,225 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                 Diluted                                      |   |   | 22,196,225 |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                  |
|------------------------------------------------------------------------------------------|
| Net      Interest Income Analysis                                                        |
| (Unaudited)                                                                              |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | For      The Three Months Ended September 30, |   |
|                                                                                     |   | 2008 |   |   | 2007 |   |
| (Dollars      in thousands)                                                              |   | AverageBalance |   |   | Interest      Earned/Paid |   |   | Yield/ Cost      (4) |   |   | AverageBalance |   |   | InterestEarned/Paid |   |   | Yield/ Cost      (4) |   |
| Assets:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      (1)                                                         |   | $ | 641,094 |   |   | $ | 9,938 |   |   |   | 6.17 | % |   | $ | 545,808 |   |   | $ | 9,073 |   |   |   | 6.63 | % |
|    Securities      and certificates of deposit                            |   |   | 333,900 |   |   |   | 3,307 |   |   |   | 3.94 |   |   |   | 262,927 |   |   |   | 2,986 |   |   |   | 4.54 |   |
|    Other      interest-earning assets                                     |   |   | 21,478 |   |   |   | 99 |   |   |   | 1.83 |   |   |   | 26,153 |   |   |   | 331 |   |   |   | 5.02 |   |
|          Total      interest-earning assets |   |   | 996,472 |   |   |   | 13,344 |   |   |   | 5.33 |   |   |   | 834,888 |   |   |   | 12,390 |   |   |   | 5.94 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                                          |   |   | 79,296 |   |   |   |   |   |   |   |   |   |   |   | 77,934 |   |   |   |   |   |   |   |   |   |
|          Total      assets                  |   | $ | 1,075,768 |   |   |   |   |   |   |   |   |   |   |   | 912,822 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    NOW  deposits                                                |   | $ | 42,078 |   |   |   | 92 |   |   |   | 0.87 |   |   | $ | 61,909 |   |   | $ | 31 |   |   |   | 0.20 |   |
|    Money      market deposits                                             |   |   | 150,501 |   |   |   | 929 |   |   |   | 2.46 |   |   |   | 119,184 |   |   |   | 1,144 |   |   |   | 3.81 |   |
|    Savings      and other deposits                                        |   |   | 123,236 |   |   |   | 354 |   |   |   | 1.14 |   |   |   | 127,363 |   |   |   | 371 |   |   |   | 1.15 |   |
|    Certificates      of deposit                                           |   |   | 435,022 |   |   |   | 4,670 |   |   |   | 4.27 |   |   |   | 419,575 |   |   |   | 5,190 |   |   |   | 4.91 |   |
|       Total      interest-bearing deposits                 |   |   | 750,837 |   |   |   | 6,045 |   |   |   | 3.20 |   |   |   | 728,031 |   |   |   | 6,736 |   |   |   | 3.70 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                     |   |   | 60,316 |   |   |   | 534 |   |   |   | 3.52 |   |   |   | 38,663 |   |   |   | 467 |   |   |   | 4.83 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      interest-bearing liabilities              |   |   | 811,153 |   |   |   | 6,579 |   |   |   | 3.23 |   |   |   | 766,694 |   |   |   | 7,203 |   |   |   | 3.76 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      demand deposits                               |   |   | 54,711 |   |   |   |   |   |   |   |   |   |   |   | 25,111 |   |   |   |   |   |   |   |   |   |
|    Other      noninterest-bearing liabilities                             |   |   | 10,509 |   |   |   |   |   |   |   |   |   |   |   | 8,232 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities             |   |   | 876,373 |   |   |   |   |   |   |   |   |   |   |   | 800,037 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      stockholders' equity                      |   |   | 199,395 |   |   |   |   |   |   |   |   |   |   |   | 112,785 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders' equity      |   | $ | 1,075,768 |   |   |   |   |   |   |   |   |   |   | $ | 912,822 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest income                                               |   |   |   |   |   | $ | 6,765 |   |   |   |   |   |   |   |   |   |   | $ | 5,187 |   |   |   |   |   |
|    Interest      rate spread  (2)                               |   |   |   |   |   |   |   |   |   |   | 2.10 | % |   |   |   |   |   |   |   |   |   |   | 2.18 | % |
|    Net      interest margin  (3)                                |   |   |   |   |   |   |   |   |   |   | 2.70 | % |   |   |   |   |   |   |   |   |   |   | 2.48 | % |
|    Average      interest-earning assets to                                |   |   |   |   |   |   | 122.85 | % |   |   |   |   |   |   |   |   |   |   | 108.89 | % |   |   |   |   |
|       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. |   |
|                                                                                                                                                         |   |   |   |   |   |   |   |
| (3)      Net interest margin represents net interest income divided by average      interest-earning assets.                                                 |   |
|                                                                                                                                                         |   |   |   |   |   |   |   |
| (4)      Annualized.                                                                                                                                         |   |   |   |   |   |   |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES                                  |
|------------------------------------------------------------------------------------------|
| Net      Interest Income Analysis                                                        |
| (Unaudited)                                                                              |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | For      The Nine Months Ended September 30, |   |
|                                                                                     | 2008 |   |   | 2007 |   |
| (Dollars      in thousands)                                                              |   | AverageBalance |   |   | InterestEarned/Paid |   |   | Yield/ Cost      (4) |   |   | Average Balance |   |   | Interest      Earned/Paid |   |   | Yield/ Cost      (4) |   |
| Assets:                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loans      (1)                                                         |   | $ | 604,157 |   |   | $ | 28,455 |   |   |   | 6.29 | % |   | $ | 541,108 |   |   | $ | 26,560 |   |   |   | 6.55 | % |
|    Securities      and certificates of deposit                            |   |   | 301,477 |   |   |   | 9,281 |   |   |   | 4.11 |   |   |   | 269,448 |   |   |   | 9,079 |   |   |   | 4.49 |   |
|    Other      interest-earning assets                                     |   |   | 85,350 |   |   |   | 1,640 |   |   |   | 2.57 |   |   |   | 18,900 |   |   |   | 726 |   |   |   | 5.14 |   |
|          Total      interest-earning assets |   |   | 990,984 |   |   |   | 39,376 |   |   |   | 5.31 |   |   |   | 829,456 |   |   |   | 36,365 |   |   |   | 5.85 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning      assets                                                          |   |   | 76,733 |   |   |   |   |   |   |   |   |   |   |   | 74,542 |   |   |   |   |   |   |   |   |   |
|          Total      assets                  |   | $ | 1,067,717 |   |   |   |   |   |   |   |   |   |   | $ | 903,998 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and stockholders' equity:                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    NOW  deposits                                                |   | $ | 38,855 |   |   |   | 236 |   |   |   | 0.81 |   |   | $ | 63,322 |   |   | $ | 79 |   |   |   | 0.17 |   |
|    Money      market deposits                                             |   |   | 144,751 |   |   |   | 2,967 |   |   |   | 2.74 |   |   |   | 107,266 |   |   |   | 2,852 |   |   |   | 3.55 |   |
|    Savings      and other deposits                                        |   |   | 129,138 |   |   |   | 1,103 |   |   |   | 1.14 |   |   |   | 131,199 |   |   |   | 1,142 |   |   |   | 1.16 |   |
|    Certificates      of deposit                                           |   |   | 443,140 |   |   |   | 15,076 |   |   |   | 4.54 |   |   |   | 418,279 |   |   |   | 15,086 |   |   |   | 4.82 |   |
|       Total      interest-bearing deposits                 |   |   | 755,884 |   |   |   | 19,382 |   |   |   | 3.43 |   |   |   | 720,066 |   |   |   | 19,159 |   |   |   | 3.56 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLB      advances                                                     |   |   | 53,458 |   |   |   | 1,478 |   |   |   | 3.69 |   |   |   | 40,095 |   |   |   | 1,436 |   |   |   | 4.79 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      interest-bearing liabilities              |   |   | 809,342 |   |   |   | 20,860 |   |   |   | 3.44 |   |   |   | 760,161 |   |   |   | 20,595 |   |   |   | 3.62 |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Noninterest-bearing      demand deposits                               |   |   | 53,867 |   |   |   |   |   |   |   |   |   |   |   | 24,275 |   |   |   |   |   |   |   |   |   |
|    Other      noninterest-bearing liabilities                             |   |   | 9,854 |   |   |   |   |   |   |   |   |   |   |   | 7,417 |   |   |   |   |   |   |   |   |   |
|          Total      liabilities             |   |   | 873,063 |   |   |   |   |   |   |   |   |   |   |   | 791,853 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      stockholders' equity                      |   |   | 194,654 |   |   |   |   |   |   |   |   |   |   |   | 112,145 |   |   |   |   |   |   |   |   |   |
|       Total      liabilities and stockholders' equity      |   | $ | 1,067,717 |   |   |   |   |   |   |   |   |   |   | $ | 903,998 |   |   |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      interest income                                               |   |   |   |   |   | $ | 18,516 |   |   |   |   |   |   |   |   |   |   | $ | 15,770 |   |   |   |   |   |
|    Interest      rate spread  (2)                               |   |   |   |   |   |   |   |   |   |   | 1.87 | % |   |   |   |   |   |   |   |   |   |   | 2.23 | % |
|    Net      interest margin  (3)                                |   |   |   |   |   |   |   |   |   |   | 2.50 | % |   |   |   |   |   |   |   |   |   |   | 2.53 | % |
|    Average      interest-earning assets to                                |   |   |   |   |   |   | 122.44 | % |   |   |   |   |   |   |   |   |   |   | 109.12 | % |   |   |   |   |
|       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. |   |
|                                                                                                                                                         |   |   |   |   |   |   |   |
| (3)      Net interest margin represents net interest income divided by average      interest-earning assets.                                                 |   |
|                                                                                                                                                         |   |   |   |   |   |   |   |
| (4)      Annualized.                                                                                                                                         |   |   |   |   |   |   |   |

----

| MERIDIAN      INTERSTATE BANCORP, INC. AND SUBSIDIARIES     |
|-------------------------------------------------------------|
| Financial      Ratios                                       |
| (Unaudited)                                                 |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | Three      Months Ended September 30, |   | Nine      Months Ended September 30, |
|                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Key      Performance Ratios                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average assets (4)                           |   |   | 0.80 | % |   |   | (0.13 | )      % |   |   | (0.05 | )      % |   |   | 0.34 | % |
| Return      on average equity (4)                           |   |   | 4.30 |   |   |   | (1.08 | ) |   |   | (0.27 | ) |   |   | 2.72 |   |
| Interest      rate spread  (1) (4)                |   |   | 2.10 |   |   |   | 2.18 |   |   |   | 1.87 |   |   |   | 2.23 |   |
| Net      interest margin  (2) (4)                 |   |   | 2.70 |   |   |   | 2.48 |   |   |   | 2.50 |   |   |   | 2.53 |   |
| Noninterest      expense to average assets  (4)   |   |   | 2.53 |   |   |   | 2.50 |   |   |   | 3.07 |   |   |   | 2.43 |   |
| Efficiency      ratio (3)                                   |   |   | 64.31 |   |   |   | 109.79 |   |   |   | 92.61 |   |   |   | 82.52 |   |
| Average      interest-earning assets to                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    average      interest-bearing liabilities |   |   | 122.85 |   |   |   | 108.89 |   |   |   | 122.44 |   |   |   | 109.12 |   |

|                                                                                                                                                              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (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                 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                                                                                                                                             |   | September      30, |   |   | December      31, |   |   | September      30, |   |
|                                                                                                                                             |   | 2008               |   |   | 2007              |   |   | 2007               |   |
| Asset      Quality Ratios                                                                                                                        |   |               |   |   |              |   |   |               |   |
| Allowance      for loan losses/total loans                                                                                                       |   |               | 0.86   | %      |              |   | 0.63   | %                  |   |   | 0.66 | % |
| Allowance      for loan      losses/              nonperforming      loans |   |               | 92.51  |   |              |   | 73.00  |               |   |   | 72.49 |   |
|                                                                                                                                             |   |               |   |   |              |   |   |               |   |   |   |   |
| Non-performing      loans/total loans                                                                                                            |   |               | 0.92   |   |              |   | 0.87   |               |   |   | 0.91 |   |
| Non-performing      loans/total assets                                                                                                           |   |               | 0.58   |   |              |   | 0.50   |               |   |   | 0.53 |   |
| Non-performing      assets /total assets                                                                                                         |   |               | 0.77   |   |              |   | 0.55   |               |   |   | 0.56 |   |