----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Meridian Interstate Bancorp, Inc.                      |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Massachusetts                                                  |   | 20-4652200                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| (617) 567-1500                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

| Not Applicable                                                                     |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

----

----

----

MERIDIAN INTERSTATE BANCORP, INC.

| PART I.    |   | FINANCIAL INFORMATION                                                                                                              |   |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|       |   |                                                                                                                               |   |
| Item 1.    |   | Financial Statements                                                                                                               | Page   |
|       |   |                                                                                                                               |   |
|       |   | Consolidated Balance Sheets at September 30, 2009 and December 31, 2008 (Unaudited)                                                | 1      |
|       |   |                                                                                                                               |   |
|       |   | Consolidated Statements of Operations for the three and nine months ended September 30, 2009 and 2008 (Unaudited)                  | 2      |
|       |   |                                                                                                                               |   |
|       |   | Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2009 and 2008 (Unaudited) | 3      |
|       |   |                                                                                                                               |   |
|       |   | Consolidated Statements of Cash Flows for the nine months ended September 30, 2009 and 2008 (Unaudited)                            | 4      |
|       |   |                                                                                                                               |   |
|       |   | Notes to Unaudited Consolidated Financial Statements                                                                               | 6      |
|       |   |                                                                                                                               |   |
| Item 2.    |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                        | 15     |
|       |   |                                                                                                                               |   |
| Item 3.    |   | Quantitative and Qualitative Disclosures About Market Risk                                                                         | 26     |
|       |   |                                                                                                                               |   |
| Item 4.    |   | Controls and Procedures                                                                                                            | 27     |
|       |   |                                                                                                                               |   |
| PART II.   |   | OTHER INFORMATION                                                                                                                  |   |
|       |   |                                                                                                                               |   |
| Item 1.    |   | Legal Proceedings                                                                                                                  | 28     |
|       |   |                                                                                                                               |   |
| Item 1A.   |   | Risk Factors                                                                                                                       | 28     |
|       |   |                                                                                                                               |   |
| Item 2.    |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                        | 29     |
|       |   |                                                                                                                               |   |
| Item 3.    |   | Defaults Upon Senior Securities                                                                                                    | 29     |
|       |   |                                                                                                                               |   |
| Item 4.    |   | Submission of Matters to a Vote of Security Holders                                                                                | 29     |
|       |   |                                                                                                                               |   |
| Item 5.    |   | Other Information                                                                                                                  | 29     |
|       |   |                                                                                                                               |   |
| Item 6.    |   | Exhibits                                                                                                                           | 30     |
|       |   |                                                                                                                               |   |
| Signatures | 31     |

----

Index

Item

MERIDIAN 

|                                                                                                                            |   | September 30, |      |   | December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
| (Dollars in thousands)                                                                                                          |   | 2009          |      |   | 2008         |   |
| ASSETS                                                                                                                          |   |
| Cash and due from banks                                                                                                         |   | $             | 10,761    |   |         | $      | 10,354 |   |
| Federal funds sold                                                                                                              |   |          | 16,654    |   |         |   | 9,911 |   |
| Total cash and cash equivalents                                                                                                 |   |          | 27,415    |   |         |   | 20,265 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| Certificates of deposit - affiliate bank                                                                                        |   |          | 3,000     |   |         |   | 7,000 |   |
| Securities available for sale, at fair value                                                                                    |   |          | 319,787   |   |         |   | 252,529 |   |
| Federal Home Loan Bank stock, at cost                                                                                           |   |          | 4,454     |   |         |   | 4,303 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| Loans held for sale                                                                                                             |   |          | 699       |   |         |   | - |   |
| Loans                                                                                                                           |   |          | 785,742   |   |         |   | 711,016 |   |
| Less allowance for loan losses                                                                                                  |   |          | (8,711    | )      |         |   | (6,912 | ) |
| Loans, net                                                                                                                      |   |          | 777,031   |   |         |   | 704,104 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| Bank-owned life insurance                                                                                                       |   |          | 23,501    |   |         |   | 22,831 |   |
| Investment in affiliate bank                                                                                                    |   |          | 10,468    |   |         |   | 10,376 |   |
| Premises and equipment, net                                                                                                     |   |          | 23,381    |   |         |   | 22,710 |   |
| Accrued interest receivable                                                                                                     |   |          | 5,523     |   |         |   | 6,036 |   |
| Foreclosed real estate, net                                                                                                     |   |          | 2,658     |   |         |   | 2,604 |   |
| Deferred tax asset, net                                                                                                         |   |          | 2,793     |   |         |   | 10,057 |   |
| Other assets                                                                                                                    |   |          | 1,597     |   |         |   | 2,537 |   |
| Total assets                                                                                                                    |   | $             | 1,202,307 |   |         | $      | 1,065,352 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                            |   |
| Deposits:                                                                                                                       |   |          |      |   |         |   |   |   |
| Noninterest-bearing                                                                                                             |   | $             | 61,408    |   |         | $      | 55,216 |   |
| Interest-bearing                                                                                                                |   |          | 860,605   |   |         |   | 741,636 |   |
| Total deposits                                                                                                                  |   |          | 922,013   |   |         |   | 796,852 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| Short-term borrowings - affiliate bank                                                                                          |   |          | 5,795     |   |         |   | 7,811 |   |
| Long-term debt                                                                                                                  |   |          | 57,200    |   |         |   | 57,675 |   |
| Accrued expenses and other liabilities                                                                                          |   |          | 18,167    |   |         |   | 13,174 |   |
| Total liabilities                                                                                                               |   |          | 1,003,175 |   |         |   | 875,512 |   |
|                                                                                                                            |   |          |      |   |         |   |   |   |
| Stockholders' equity:                                                                                                           |   |          |      |   |         |   |   |   |
| Common stock, no par value 50,000,000 shares authorized; 23,000,000                                                             |   |          |      |   |         |   |   |   |
| shares issued; 22,257,768 and 22,750,000 shares outstanding at                                                                  |   |          |      |   |         |   |   |   |
| September 30, 2009 and December 31, 2008, respectively                                                                          |   |          | -         |   |         |   | - |   |
| Additional paid-in capital                                                                                                      |   |          | 100,919   |   |         |   | 100,684 |   |
| Retained earnings                                                                                                               |   |          | 107,168   |   |         |   | 105,426 |   |
| Treasury stock, 328,232 shares at September 30, 2009                                                                            |   |          | (2,902    | )      |         |   | - |   |
| Accumulated other comprehensive income (loss)                                                                                   |   |          | 4,910     |   |         |   | (6,205 | ) |
| Unearned compensation - ESOP, 755,550 and 786,600 shares at September 30, 2009 and December 31, 2008, respectively              |   |          | (7,555    | )      |         |   | (7,866 | ) |
| Unearned compensation - restricted shares, 414,000 and 250,000 shares at September 30, 2009 and December 31, 2008, respectively |   |          | (3,408    | )      |         |   | (2,199 | ) |
| Total stockholders' equity                                                                                                      |   |          | 199,132   |   |         |   | 189,840 |   |
| Total liabilities and stockholders' equity                                                                                      |   | $             | 1,202,307 |   |         | $      | 1,065,352 |   |

----

Index

ME

|                                                 |   | Three Months Ended September 30, |       |   | Nine Months Ended September 30, |   |
|------------------------------------------------------|--------|----------------------------------|------------|--------|---------------------------------|--------|
| (Dollars in thousands, except per share amounts)     |   | 2009                             |       |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
| Interest and dividend income:                        |   |                             |       |   |                            |   |   |   |   |   |   |   |
| Interest and fees on loans                           |   | $                                | 11,480     |   |                            | $      | 9,938 |   |   | $ | 33,171 |   |   | $ | 28,455 |   |
| Interest on debt securities                          |   |                             | 2,673      |   |                            |   | 2,674 |   |   |   | 7,682 |   |   |   | 7,919 |   |
| Dividends on equity securities                       |   |                             | 252        |   |                            |   | 573 |   |   |   | 844 |   |   |   | 1,264 |   |
| Interest on certificates of deposit                  |   |                             | 16         |   |                            |   | 60 |   |   |   | 72 |   |   |   | 98 |   |
| Interest on federal funds sold                       |   |                             | 5          |   |                            |   | 99 |   |   |   | 23 |   |   |   | 1,640 |   |
| Total interest and dividend income                   |   |                             | 14,426     |   |                            |   | 13,344 |   |   |   | 41,792 |   |   |   | 39,376 |   |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                    |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                 |   |                             | 4,404      |   |                            |   | 6,045 |   |   |   | 14,605 |   |   |   | 19,382 |   |
| Interest on short-term borrowings                    |   |                             | 5          |   |                            |   | - |   |   |   | 47 |   |   |   | 115 |   |
| Interest on long-term debt                           |   |                             | 502        |   |                            |   | 534 |   |   |   | 1,501 |   |   |   | 1,363 |   |
| Total interest expense                               |   |                             | 4,911      |   |                            |   | 6,579 |   |   |   | 16,153 |   |   |   | 20,860 |   |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                  |   |                             | 9,515      |   |                            |   | 6,765 |   |   |   | 25,639 |   |   |   | 18,516 |   |
| Provision for loan losses                            |   |                             | 694        |   |                            |   | 403 |   |   |   | 1,808 |   |   |   | 2,731 |   |
| Net interest income, after provision for loan losses |   |                             | 8,821      |   |                            |   | 6,362 |   |   |   | 23,831 |   |   |   | 15,785 |   |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income:                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Customer service fees                                |   |                             | 826        |   |                            |   | 718 |   |   |   | 2,322 |   |   |   | 2,073 |   |
| Loan fees                                            |   |                             | 160        |   |                            |   | 181 |   |   |   | 437 |   |   |   | 551 |   |
| Gain (loss) on sales of loans, net                   |   |                             | 125        |   |                            |   | (10 | ) |   |   | 424 |   |   |   | 17 |   |
| Other-than-temporary impairment losses on securities |   |                             | (56        | )      |                            |   | - |   |   |   | (429 | ) |   |   | - |   |
| Gain (loss) on sales of securities, net              |   |                             | (290       | )      |                            |   | 2,779 |   |   |   | (290 | ) |   |   | 5,092 |   |
| Income from bank-owned life insurance                |   |                             | 216        |   |                            |   | 209 |   |   |   | 670 |   |   |   | 624 |   |
| Equity income (loss) on investment in affiliate bank |   |                             | 117        |   |                            |   | (69 | ) |   |   | 92 |   |   |   | (323 | ) |
| Total non-interest income                            |   |                             | 1,098      |   |                            |   | 3,808 |   |   |   | 3,226 |   |   |   | 8,034 |   |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expenses:                               |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                       |   |                             | 4,084      |   |                            |   | 4,009 |   |   |   | 14,499 |   |   |   | 13,793 |   |
| Occupancy and equipment                              |   |                             | 754        |   |                            |   | 719 |   |   |   | 2,315 |   |   |   | 2,198 |   |
| Data processing                                      |   |                             | 406        |   |                            |   | 450 |   |   |   | 1,318 |   |   |   | 1,243 |   |
| Marketing and advertising                            |   |                             | 387        |   |                            |   | 293 |   |   |   | 934 |   |   |   | 832 |   |
| Professional services                                |   |                             | 467        |   |                            |   | 595 |   |   |   | 1,535 |   |   |   | 1,562 |   |
| Contribution to the Meridian Charitable Foundation   |   |                             | -          |   |                            |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Foreclosed real estate expense                       |   |                             | 15         |   |                            |   | 31 |   |   |   | 493 |   |   |   | 74 |   |
| Deposit insurance                                    |   |                             | 373        |   |                            |   | 172 |   |   |   | 1,513 |   |   |   | 382 |   |
| Other general and administrative                     |   |                             | 681        |   |                            |   | 530 |   |   |   | 1,921 |   |   |   | 1,503 |   |
| Total non-interest expenses                          |   |                             | 7,167      |   |                            |   | 6,799 |   |   |   | 24,528 |   |   |   | 24,587 |   |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                    |   |                             | 2,752      |   |                            |   | 3,371 |   |   |   | 2,529 |   |   |   | (768 | ) |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Provision (benefit) for income taxes                 |   |                             | 864        |   |                            |   | 1,228 |   |   |   | 787 |   |   |   | (374 | ) |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                    |   | $                                | 1,888      |   |                            | $      | 2,143 |   |   | $ | 1,742 |   |   | $ | (394 | ) |
|                                                 |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                           |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   | $                                | 0.09       |   |                            | $      | 0.10 |   |   | $ | 0.08 |   |   |   | N/A |   |
| Diluted                                              |   | $                                | 0.09       |   |                            | $      | 0.10 |   |   | $ | 0.08 |   |   |   | N/A |   |
| Weighted average common shares outstanding:          |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   |                             | 21,542,287 |   |                            |   | 22,196,225 |   |   |   | 21,704,968 |   |   |   | N/A |   |
| Diluted                                              |   |                             | 21,713,948 |   |                            |   | 22,196,225 |   |   |   | 21,889,813 |   |   |   | N/A |   |

----

Index

M

| (Dollars in thousands)                                                                                                  |   | Shares of No Par Common Stock Outstanding |       |   | Additional Paid-in Capital |   |    | Retained Earnings |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Unearned Compensation ESOP |   |    | Unearned Compensation Restricted Shares |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|----------------------------|--------|---------|-------------------|--------|--------|----------------|--------|--------|----------------------------------------------------|--------|--------|----------------------------|--------|---------|-----------------------------------------|--------|--------|--------|--------|
| Nine Months Ended September 30, 2008                                                                                    |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |
| Balance at December 31, 2007                                                                                            |   |                                      | -          |   |                       | $      | -       |              |   | $      | 109,177        |   |   | $                                                  | -      |   |                       | $      | 6,507   |                                    |   | $      | -      |   |   | $ | - |   |   | $ | 115,684 |   |
| Adjustment to initially apply EITF 06-4                                                                                 |   |                                      | -          |   |                       |   | -       |              |   |   | (1,642         | )      |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | (1,642 | ) |
| Comprehensive loss:                                                                                                     |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                |   |                                      | -          |   |                       |   | -       |              |   |   | (394           | )      |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | (394 | ) |
| Change in net unrealized loss on securities available for sale, net of reclassification adjustment and tax effects      |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | (10,914 | )                                       |   |   | -      |   |   |   | - |   |   |   | (10,914 | ) |
| Change in prior service costs and actuarial losses, net of tax effects                                                  |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | 15      |                                    |   |   | -      |   |   |   | - |   |   |   | 15 |   |
| Total comprehensive loss                                                                                                |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   | (11,293 | ) |
| Adjustment to initially apply FAS 158 for                                                                               |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| long-term health care plan                                                                                              |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | (353    | )                                       |   |   | -      |   |   |   | - |   |   |   | (353 | ) |
| Issuance of 12,650,000 shares to the mutual holding company                                                             |   |                                      | 12,650,000 |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | - |   |
| Issuance of 10,050,000 shares in the initial public offering, net of expenses of $2,867                                 |   |                                      | 10,050,000 |   |                       |   | 97,633  |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | 97,633 |   |
| Issuance and contribution of 300,000 shares                                                                             |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| to the Meridian Charitable Foundation                                                                                   |   |                                      | 300,000    |   |                       |   | 3,000   |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | 3,000 |   |
| Purchase of common stock by the ESOP                                                                                    |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | (8,280 | )      |   |   | - |   |   |   | (8,280 | ) |
| ESOP shares earned (31,050 shares)                                                                                      |   |                                      | -          |   |                       |   | (5      | )                 |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | 310    |   |   |   | - |   |   |   | 305 |   |
| Balance at September 30, 2008                                                                                           |   |                                      | 23,000,000 |   |                       | $      | 100,628 |              |   | $      | 107,141        |   |   | $                                                  | -      |   |                       | $      | (4,745  | )                                       |   | $      | (7,970 | )      |   | $ | - |   |   | $ | 195,054 |   |
| Nine Months Ended September 30, 2009                                                                                    |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2008                                                                                            |   |                                      | 22,750,000 |   |                       | $      | 100,684 |              |   | $      | 105,426        |   |   | $                                                  | -      |   |                       | $      | (6,205  | )                                       |   | $      | (7,866 | )      |   | $ | (2,199 | ) |   | $ | 189,840 |   |
| Comprehensive income :                                                                                                  |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                              |   |                                      | -          |   |                       |   | -       |              |   |   | 1,742          |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | 1,742 |   |
| Change in net unrealized gain/loss on securities available for sale, net of reclassification adjustment and tax effects |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | 11,133  |                                    |   |   | -      |   |   |   | - |   |   |   | 11,133 |   |
| Change in prior service costs and actuarial losses, net of tax effects                                                  |   |                                      | -          |   |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | (18     | )                                       |   |   | -      |   |   |   | - |   |   |   | (18 | ) |
| Total comprehensive income                                                                                              |   |                                      |       |   |                       |   |    |              |   |   |           |   |   |                                               |   |   |                       |   |    |                                    |   |   |   |   |   |   |   |   |   |   | 12,857 |   |
| Repurchase of 328,232 shares (treasury stock)                                                                           |   |                                      | (328,232   | )      |                       |   | -       |              |   |   | -              |   |   |                                               | (2,902 | )      |                       |   | -       |                                    |   |   | -      |   |   |   | - |   |   |   | (2,902 | ) |
| ESOP shares earned (31,050 shares)                                                                                      |   |                                      | -          |   |                       |   | (47     | )                 |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | 311    |   |   |   | - |   |   |   | 264 |   |
| Purchase of 164,000 shares for restricted share plan                                                                    |   |                                      | (164,000   | )      |                       |   | -       |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | (1,468 | ) |   |   | (1,468 | ) |
| Share-based compensation expense                                                                                        |   |                                      | -          |   |                       |   | 282     |              |   |   | -              |   |   |                                               | -      |   |                       |   | -       |                                    |   |   | -      |   |   |   | 259 |   |   |   | 541 |   |
| Balance at September 30, 2009                                                                                           |   |                                      | 22,257,768 |   |                       | $      | 100,919 |              |   | $      | 107,168        |   |   | $                                                  | (2,902 | )      |                       | $      | 4,910   |                                    |   | $      | (7,555 | )      |   | $ | (3,408 | ) |   | $ | 199,132 |   |

----

Index

ME

|                                                                                     |   |                            |     |   |   |   |
|------------------------------------------------------------------------------------------|--------|---------------------------------|----------|--------|--------|--------|
|                                                                                     |   | Nine Months Ended September 30, |     |
| (In thousands)                                                                           |   | 2009                            |     |   | 2008   |   |
| Cash flows from operating activities:                                                    |   |                            |     |   |   |   |
| Net income (loss)                                                                        |   | $                               | 1,742    |   |   | $      | (394 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |   |                            |     |   |   |   |   |   |
| Contribution to the Meridian Charitable Foundation                                       |   |                            | -        |   |   |   | 3,000 |   |
| Earned ESOP shares                                                                       |   |                            | 264      |   |   |   | 305 |   |
| Provision for loan losses                                                                |   |                            | 1,808    |   |   |   | 2,731 |   |
| Amortization of net deferred loan origination fees                                       |   |                            | (49      | )      |   |   | (242 | ) |
| Net amortization of securities available for sale                                        |   |                            | 925      |   |   |   | 828 |   |
| Depreciation and amortization expense                                                    |   |                            | 972      |   |   |   | 950 |   |
| Loss (gain) on sales of securities, net                                                  |   |                            | 290      |   |   |   | (5,092 | ) |
| Other-than-temporary impairment losses on securities                                     |   |                            | 429      |   |   |   | - |   |
| Loss and provision for foreclosed real estate                                            |   |                            | 369      |   |   |   | 5 |   |
| Deferred income tax benefit                                                              |   |                            | (84      | )      |   |   | (1,522 | ) |
| Loans originated for sale                                                                |   |                            | (62,049  | )      |   |   | (8,041 | ) |
| Principal balance of mortgage loans sold                                                 |   |                            | 61,350   |   |   |   | 8,041 |   |
| Income from bank-owned life insurance                                                    |   |                            | (670     | )      |   |   | (624 | ) |
| Equity (income) loss on investment in affiliate bank                                     |   |                            | (92      | )      |   |   | 323 |   |
| Share-based compensation expense                                                         |   |                            | 541      |   |   |   | - |   |
| Net changes in:                                                                          |   |                            |     |   |   |   |   |   |
| Accrued interest receivable                                                              |   |                            | 513      |   |   |   | 137 |   |
| Other assets                                                                             |   |                            | 940      |   |   |   | 2,808 |   |
| Accrued expenses and other liabilities                                                   |   |                            | 4,975    |   |   |   | 1,438 |   |
| Net cash provided by operating activities                                                |   |                            | 12,174   |   |   |   | 4,651 |   |
|                                                                                     |   |                            |     |   |   |   |   |   |
|  Cash flows from investing activities:                                              |   |                            |     |   |   |   |   |   |
| Maturities (purchases) of certificates of deposit                                        |   |                            | 4,000    |   |   |   | (7,000 | ) |
| Activity in securities available for sale:                                               |   |                            |     |   |   |   |   |   |
| Proceeds from maturities, calls and principal payments                                   |   |                            | 39,744   |   |   |   | 90,363 |   |
| Proceeds from redemption of mutual funds                                                 |   |                            | 12,116   |   |   |   | 25,000 |   |
| Proceeds from sales                                                                      |   |                            | 392      |   |   |   | 16,947 |   |
| Purchases                                                                                |   |                            | (102,673 | )      |   |   | (168,579 | ) |
| Purchase of Federal Home Loan Bank stock                                                 |   |                            | (151     | )      |   |   | (1,138 | ) |
| Loans originated, net of principal payments received                                     |   |                            | (75,526  | )      |   |   | (99,228 | ) |
| Purchase of bank-owned life insurance                                                    |   |                            | -        |   |   |   | (4,000 | ) |
| Purchases of premises and equipment                                                      |   |                            | (1,643   | )      |   |   | (709 | ) |
| Capitalized cost on foreclosed real estate                                               |   |                            | (1,132   | )      |   |   | - |   |
| Proceeds from sales of foreclosed real estate                                            |   |                            | 1,549    |   |   |   | 1,463 |   |
| Net cash used in investing activities                                                    |   |                            | (123,324 | )      |   |   | (146,881 | ) |

----

Index

|                                                                                  |   | Nine Months Ended Septmeber 30, |    |
|---------------------------------------------------------------------------------------|--------|---------------------------------|---------|
| (In thousands)                                                                        |   | 2009                            |    |   | 2008 |   |
| Cash flows from financing activities:                                                 |   |                            |    |   |   |   |
| Net increase in deposits                                                              |   |                            | 125,161 |   |   |   | 30,638 |   |
| Proceeds from sale of common stock                                                    |   |                            | -       |   |   |   | 97,633 |   |
| Common stock purchased by ESOP                                                        |   |                            | -       |   |   |   | (8,280 | ) |
| Decrease in stock subscriptions                                                       |   |                            | -       |   |   |   | (62,518 | ) |
| Purchase of stock for equity incentive plan                                           |   |                            | (1,468  | ) |   |   | - |   |
| Purchase of treasury stock                                                            |   |                            | (2,902  | ) |   |   | - |   |
| Net change in borrowings with maturities less than three months                       |   |                            | (2,016  | ) |   |   | (9,154 | ) |
| Proceeds from Federal Home Loan Bank advances with maturities of three months or more |   |                            | -       |   |   |   | 45,000 |   |
| Repayment of Federal Home Loan Bank advances with maturities of three months or more  |   |                            | (475    | ) |   |   | (14,698 | ) |
| Net cash provided by financing activities                                             |   |                            | 118,300 |   |   |   | 78,621 |   |
|                                                                                  |   |                            |    |   |   |   |   |   |
| Net change in cash and cash equivalents                                               |   |                            | 7,150   |   |   |   | (63,609 | ) |
|                                                                                  |   |                            |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                      |   |                            | 20,265  |   |   |   | 103,093 |   |
|                                                                                  |   |                            |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                            |   | $                               | 27,415  |   |   | $ | 39,484 |   |
|                                                                                  |   |                            |    |   |   |   |   |   |
| Supplemental cash flow information:                                                   |   |                            |    |   |   |   |   |   |
| Interest paid on deposits                                                             |   | $                               | 14,936  |   |   |   | 19,583 |   |
| Interest paid on borrowings                                                           |   |                            | 1,555   |   |   |   | 1,427 |   |
| Income taxes paid                                                                     |   |                            | 1,315   |   |   |   | 180 |   |
| Non-cash investing and financing activities:                                          |   |                            |    |   |   |   |   |   |
| Transfers from loans to foreclosed real estate                                        |   |                            | 840     |   |   |   | 2,953 |   |

----

Index

OTES

| 1. | Basis of Presentation |
|----|-----------------------|

| 2. | Recent Accounting Pronouncements |
|----|----------------------------------|

----

Index

----

Index

----

Index

|                          | September 30, 2009 |    |   |   |    |
|-------------------------------|--------------------|---------|--------|--------|---------|
| (In thousands)                |               | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Securities available for sale |               | $       | 71,869 |   |    | $ | 247,918 |   |   |   | - |   |   | $ | 319,787 |   |
|                          |               |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
|                          |               |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
|                          | December 31, 2008  |    |   |   |    |   |
| (In thousands)                |               | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Securities available for sale |               | $       | 47,799 |   |    | $ | 204,730 |   |   |   | - |   |   | $ | 252,529 |   |

|                   | September 30, 2009 |    |   | Nine Months Ended September 30, 2009              |    |
|------------------------|--------------------|---------|--------|---------------------------------------------------|---------|
| (In thousands)         |               | Level 1 |   |                                              | Level 2 |   |   | Level 3 |   |   | Total Losses |   |
| Impaired loans         |               | $       | -      |                                              |    | $ | - |   |   | $ | 5,850 |   |   | $ | 894 |   |
| Foreclosed real estate |               |    | -      |                                              |    |   | - |   |   |   | 2,658 |   |   |   | 286 |   |
|                   |               | $       | -      |                                              |    | $ | - |   |   | $ | 8,508 |   |   | $ | 1,180 |   |
|                   |               |    |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |
|                   |               |    |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |
|                   | December 31, 2008  |    |   | Nine Months Ended September 30, 2008 Total Losses |    |
| (In thousands)         |               | Level 1 |   |                                              | Level 2 |   |   | Level 3 |   |   | Total Losses |   |
| Impaired loans         |               | $       | -      |                                              |    | $ | - |   |   | $ | 1,511 |   |   | $ | 2,284 |   |
| Foreclosed real estate |               |    | -      |                                              |    |   | - |   |   |   | 2,604 |   |   |   | - |   |
|                   |               | $       | -      |                                              |    | $ | - |   |   | $ | 4,115 |   |   | $ | 2,284 |   |

----

Index

|                          |   | September 30, 2009 |    |   | December 31, 2008 |   |
|-------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| (In thousands)                |   | Carrying Amount    |    |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Financial assets:             |   |               |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents     |   | $                  | 27,415  |   |              | $      | 27,415 |   |   | $ | 20,265 |   |   | $ | 20,265 |   |
| Certificates of deposit       |   |               | 3,000   |   |              |   | 3,006 |   |   |   | 7,000 |   |   |   | 7,010 |   |
| Securities available for sale |   |               | 319,787 |   |              |   | 319,787 |   |   |   | 252,529 |   |   |   | 252,529 |   |
| Federal Home Loan Bank stock  |   |               | 4,454   |   |              |   | 4,454 |   |   |   | 4,303 |   |   |   | 4,303 |   |
| Loans held for sale           |   |               | 699     |   |              |   | 717 |   |   |   | - |   |   |   | - |   |
| Loans                         |   |               | 777,031 |   |              |   | 776,296 |   |   |   | 704,104 |   |   |   | 705,956 |   |
| Accrued interest receivable   |   |               | 5,523   |   |              |   | 5,523 |   |   |   | 6,036 |   |   |   | 6,036 |   |
|                          |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:        |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                      |   |               | 922,013 |   |              |   | 927,136 |   |   |   | 796,852 |   |   |   | 799,378 |   |
| Borrowings                    |   |               | 62,995  |   |              |   | 64,721 |   |   |   | 65,486 |   |   |   | 66,509 |   |
| Accrued interest payable      |   |               | 579     |   |              |   | 579 |   |   |   | 1,081 |   |   |   | 1,081 |   |

----

Index

| 4. | Earnings Per Share   |
|----|--------------------------------|

|                                                   |   | Three Months Ended September 30, |       |   | Nine Months Ended September 30, |   |
|--------------------------------------------------------|--------|----------------------------------|------------|--------|---------------------------------|--------|
|  (Dollars in thousands, except per share amounts) |   | 2009                             |       |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |
| Net income (loss) available to common stockholders     |   | $                                | 1,888      |   |                            | $      | 2,143 |   |   | $ | 1,742 |   |   | $ | (394 | ) |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding              |   |                             | 21,542,287 |   |                            |   | 22,196,225 |   |   |   | 21,704,968 |   |   |   | N/A |   |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities                          |   |                             | 171,661    |   |                            |   | - |   |   |   | 184,845 |   |   |   | N/A |   |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average shares outstanding            |   |                             | 21,713,948 |   |                            |   | 22,196,225 |   |   |   | 21,889,813 |   |   |   | N/A |   |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                    |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                  |   | $                                | 0.09       |   |                            | $      | 0.10 |   |   | $ | 0.08 |   |   | $ | N/A |   |
| Diluted                                                |   | $                                | 0.09       |   |                            | $      | 0.10 |   |   | $ | 0.08 |   |   | $ | N/A |   |

| 5. | Securities |
|----|------------|

----

Index

|  (In thousands)                   |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|----------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| September 30, 2009                     |   |           |    |
|                                   |   |           |    |   |                   |   |   |                    |   |   |       |   |
| Debt securities:                       |   |           |    |   |                   |   |   |                    |   |   |       |   |
| Government-sponsored enterprises       |   | $              | 15      |   |                   | $      | -      |                    |   | $      | (4         | )      |   | $ | 11 |   |
| Corporate bonds                        |   |           | 224,979 |   |                   |   | 9,008  |                    |   |   | (2,068     | )      |   |   | 231,919 |   |
| Residential mortgage-backed securities |   |           | 15,916  |   |                   |   | 72     |                    |   |   | -          |   |   |   | 15,988 |   |
| Total debt securities                  |   |           | 240,910 |   |                   |   | 9,080  |                    |   |   | (2,072     | )      |   |   | 247,918 |   |
|                                   |   |           |    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| Marketable equity securities:          |   |           |    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| Common stocks                          |   |           | 28,565  |   |                   |   | 3,029  |                    |   |   | (1,234     | )      |   |   | 30,360 |   |
| Money market mutual funds              |   |           | 41,509  |   |                   |   | -      |                    |   |   | -          |   |   |   | 41,509 |   |
| Total marketable equity securities     |   |           | 70,074  |   |                   |   | 3,029  |                    |   |   | (1,234     | )      |   |   | 71,869 |   |
| Total securities available for sale    |   | $              | 310,984 |   |                   | $      | 12,109 |                    |   | $      | (3,306     | )      |   | $ | 319,787 |   |

|  (In thousands)                   |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|----------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
| December 31, 2008                      |   |           |    |
|                                   |   |           |    |   |                   |   |   |                    |   |   |       |   |
| Debt securities:                       |   |           |    |   |                   |   |   |                    |   |   |       |   |
| Government-sponsored enterprises       |   | $              | 1,000   |   |                   | $      | 3      |                    |   | $      | -          |   |   | $ | 1,003 |   |
| Corporate bonds                        |   |           | 210,079 |   |                   |   | 1,404  |                    |   |   | (7,796     | )      |   |   | 203,687 |   |
| Residential mortgage-backed securities |   |           | 40      |   |                   |   | 3      |                    |   |   | (3         | )      |   |   | 40 |   |
| Total debt securities                  |   |           | 211,119 |   |                   |   | 1,410  |                    |   |   | (7,799     | )      |   |   | 204,730 |   |
|                                   |   |           |    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
|  Marketable equity securities:    |   |           |    |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| Common stocks                          |   |           | 26,142  |   |                   |   | 1,185  |                    |   |   | (4,473     | )      |   |   | 22,854 |   |
| Money market mutual funds              |   |           | 24,945  |   |                   |   | -      |                    |   |   | -          |   |   |   | 24,945 |   |
| Total marketable equity securities     |   |           | 51,087  |   |                   |   | 1,185  |                    |   |   | (4,473     | )      |   |   | 47,799 |   |
| Total securities available for sale    |   | $              | 262,206 |   |                   | $      | 2,595  |                    |   | $      | (12,272    | )      |   | $ | 252,529 |   |

----

Index

|                      |   | September 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                      |   | Amortized          |    |   | Fair              |   |   | Amortized |   |   | Fair |   |
| (In thousands)            |   | Cost               |    |   | Value             |   |   | Cost |   |   | Value |   |
|                      |   |               |    |   |              |   |
| 1 year or less            |   | $                  | 28,717  |   |              | $      | 28,946 |   |   | $ | 48,533 |   |   | $ | 48,430 |   |
| Over 1 year to 5 years    |   |               | 196,264 |   |              |   | 202,974 |   |   |   | 162,546 |   |   |   | 156,260 |   |
| Over 5 years to ten years |   |               | 13      |   |              |   | 10 |   |   |   | 15 |   |   |   | 13 |   |
| Over 10 years             |   |               | 15,916  |   |              |   | 15,988 |   |   |   | 25 |   |   |   | 27 |   |
|                      |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                      |   | $                  | 240,910 |   |              | $      | 247,918 |   |   | $ | 211,119 |   |   | $ | 204,730 |   |

|                                  |   | Less Than Twelve Months |   |   | Twelve Months or More |   |
|---------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In thousands)                        |   | Gross Unrealized Losses |   |   | Fair Value            |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |
| September 30, 2009                    |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Debt securities:                      |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Government-sponsored enterprises      |   | $                       | -      |   |                  | $      | - |   |   | $ | 4 |   |   | $ | 10 |   |
| Corporate bonds                       |   |                    | 1,924  |   |                  |   | 18,519 |   |   |   | 144 |   |   |   | 9,028 |   |
| Total debt securities                 |   |                    | 1,924  |   |                  |   | 18,519 |   |   |   | 148 |   |   |   | 9,038 |   |
|                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|  Common stock                    |   |                    | 181    |   |                  |   | 3,753 |   |   |   | 1,053 |   |   |   | 10,245 |   |
| Total temporarily impaired securities |   | $                       | 2,105  |   |                  | $      | 22,272 |   |   | $ | 1,201 |   |   | $ | 19,283 |   |

|                                   |   | Less Than Twelve Months |   |   | Twelve Months or More |   |
|----------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| (In thousands)                         |   | Gross Unrealized Losses |   |   | Fair Value            |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
| December 31, 2008                      |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Debt securities:                       |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Corporate bonds                        |   | $                       | 4,431  |   |                  | $      | 77,145 |   |   | $ | 3,365 |   |   | $ | 36,102 |   |
| Residential mortgage-backed securities |   |                    | -      |   |                  |   | - |   |   |   | 3 |   |   |   | 11 |   |
| Total debt securities                  |   |                    | 4,431  |   |                  |   | 77,145 |   |   |   | 3,368 |   |   |   | 36,113 |   |
|                                   |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                           |   |                    | 3,728  |   |                  |   | 14,979 |   |   |   | 745 |   |   |   | 2,281 |   |
| Total temporarily impaired securities  |   | $                       | 8,159  |   |                  | $      | 92,124 |   |   | $ | 4,113 |   |   | $ | 38,394 |   |

----

Index

----

Index

| 6. | Acquisition |
|----|-------------|

| 7. | Subsequent Events |
|----|-------------------|

Item 2

|   | · | significantly increased competition among depository and other financial institutions; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | inflation and changes in the interest rate environment or other changes that reduce our interest margins or reduce the fair value of financial instruments; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | adverse changes in the securities markets; |
|--------|--------|--------------------------------------------|

|   | · | legislative or regulatory changes that adversely affect our business; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | our ability to enter new markets successfully and take advantage of growth opportunities, and the possible dilutive effect of potential acquisitions or de novo branches, if any; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in consumer spending, borrowing and savings habits; |
|--------|--------|-------------------------------------------------------------|

|   | · | changes in accounting policies and practices, as may be adopted by bank regulatory agencies, the Financial Accounting Standards Board, the Public Company Accounting Oversight Board and other promulgating authorities; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | inability of third-party providers to perform their obligations to us; |
|--------|--------|------------------------------------------------------------------------|

|   | · | changes in our organization, compensation and benefit plans; |
|--------|--------|--------------------------------------------------------------|

|   | · | changes in real estate values in our market areas; |
|--------|--------|----------------------------------------------------|

|   | · | the effect of the current governmental effort to restructure the U.S. financial and regulatory system; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the effect of developments in the secondary market affecting our loan pricing; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | the level of future deposit premiums; and |
|--------|--------|-------------------------------------------|

|   | · | the effect of the current financial crisis on our loan portfolio and our investment portfolio, and our deposit and other customers. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                               |   |                  |    |   |                 |   |
|------------------------------------|--------|-----------------------|---------|--------|----------------------|--------|
|                               |   | At September 30, 2009 |    |   | At December 31, 2008 |   |
| (Dollars in thousands)             |   | Amount                |    |   | %                    |   |   | Amount |   |   | % |   |
| Real estate loans:                 |   |                  |    |   |                 |   |   |   |   |   |   |   |
| One- to four-family                |   | $                     | 283,466 |   |                 |   | 36.0 | % |   | $ | 274,716 |   |   |   | 38.6 | % |
| Multi-family                       |   |                  | 51,183  |   |                 |   | 6.5 |   |   |   | 31,212 |   |   |   | 4.4 |   |
| Commercial real estate             |   |                  | 304,579 |   |                 |   | 38.7 |   |   |   | 269,454 |   |   |   | 37.7 |   |
| Construction                       |   |                  | 96,701  |   |                 |   | 12.3 |   |   |   | 91,652 |   |   |   | 12.9 |   |
| Home equity lines of credit        |   |                  | 31,417  |   |                 |   | 4.0 |   |   |   | 28,253 |   |   |   | 4.0 |   |
| Total real estate loans            |   |                  | 767,346 |   |                 |   | 97.5 |   |   |   | 695,287 |   |   |   | 97.6 |   |
|                               |   |                  |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business loans          |   |                  | 18,071  |   |                 |   | 2.3 |   |   |   | 15,355 |   |   |   | 2.2 |   |
| Consumer loans                     |   |                  | 1,281   |   |                 |   | 0.2 |   |   |   | 1,379 |   |   |   | 0.2 |   |
| Total loans                        |   |                  | 786,698 |   |                 |   | 100.0 | % |   |   | 712,021 |   |   |   | 100.0 | % |
| Net deferred loan origination fees |   |                  | (956    | )      |                 |   |   |   |   |   | (1,005 | ) |   |   |   |   |
| Allowance for loan losses          |   |                  | (8,711  | )      |                 |   |   |   |   |   | (6,912 | ) |   |   |   |   |
| Loans, net                         |   | $                     | 777,031 |   |                 |   |   |   |   | $ | 704,104 |   |   |   |   |   |

----

Index

|                                         |   | Three Months Ended September 30, |   |   | Nine Months Ended Septmeber 30, |   |
|----------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| (Dollars in thousands)                       |   | 2009                             |   |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
| Beginning balance                            |   | $                                | 8,120  |   |                            | $      | 5,961 |   |   | $ | 6,912 |   |   | $ | 3,637 |   |
|                                         |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                    |   |                             | 694    |   |                            |   | 403 |   |   |   | 1,808 |   |   |   | 2,731 |   |
| Charge offs:                                 |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                            |   |                             | 51     |   |                            |   | 647 |   |   |   | 216 |   |   |   | 650 |   |
| Commercial business loans                    |   |                             | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Consumer loans                               |   |                             | 57     |   |                            |   | - |   |   |   | 58 |   |   |   | 2 |   |
| Total charge-offs                            |   |                             | 108    |   |                            |   | 647 |   |   |   | 274 |   |   |   | 652 |   |
|                                         |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                  |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans                            |   |                             | -      |   |                            |   | - |   |   |   | 260 |   |   |   | 1 |   |
| Commercial business loans                    |   |                             | -      |   |                            |   | - |   |   |   | - |   |   |   | - |   |
| Consumer loans                               |   |                             | 5      |   |                            |   | 1 |   |   |   | 5 |   |   |   | 1 |   |
| Total recoveries                             |   |                             | 5      |   |                            |   | 1 |   |   |   | 265 |   |   |   | 2 |   |
| Net recoveries (charge-offs)                 |   |                             | (103   | )      |                            |   | (646 | ) |   |   | (9 | ) |   |   | (650 | ) |
|                                         |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                               |   | $                                | 8,711  |   |                            | $      | 5,718 |   |   | $ | 8,711 |   |   | $ | 5,718 |   |
|                                         |   |                             |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Allowance to non-accrual loans               |   |                             | 45.14  | %      |                            |   | 92.51 | % |   |   | 45.14 | % |   |   | 92.51 | % |
| Allowance to total loans outstanding         |   |                             | 1.11   | %      |                            |   | 0.86 | % |   |   | 1.11 | % |   |   | 0.86 | % |
| Net charge-offs to average loans outstanding |   |                             | 0.01   | %      |                            |   | 0.10 | % |   |   | 0.00 | % |   |   | 0.11 | % |

----

Index

|                                        |   |             |   |   |            |   |
|---------------------------------------------|--------|------------------|--------|--------|-----------------|--------|
|                                        |   | At September 30, |   |   | At December 31, |   |
| (In thousands)                              |   | 2009             |   |   | 2008            |   |
| Loans accounted for on a non-accrual basis: |   |             |   |   |            |   |
| Real estate loans:                          |   |             |   |   |            |   |
| One- to four-family                         |   | $                | 4,287  |   |            | $      | 3,962 |   |
| Multi-family                                |   |             | 858    |   |            |   | - |   |
| Commercial real estate                      |   |             | 1,753  |   |            |   | 883 |   |
| Home equity lines of credit                 |   |             | 37     |   |            |   | - |   |
| Construction                                |   |             | 12,360 |   |            |   | 9,387 |   |
| Total real estate loans                     |   |             | 19,295 |   |            |   | 14,232 |   |
|                                        |   |             |   |   |            |   |   |   |
| Consumer loans                              |   |             | 1      |   |            |   | - |   |
| Total non-accrual loans                     |   |             | 19,296 |   |            |   | 14,232 |   |
|                                        |   |             |   |   |            |   |   |   |
| Foreclosed assets                           |   |             | 2,658  |   |            |   | 2,604 |   |
| Total non-performing assets                 |   | $                | 21,954 |   |            | $      | 16,836 |   |
|                                        |   |             |   |   |            |   |   |   |
| Non-accrual loans to total loans            |   |             | 2.45   | %      |            |   | 2.00 | % |
| Non-accrual loans to total assets           |   |             | 1.60   | %      |            |   | 1.34 | % |
| Non-performing assets to total assets       |   |             | 1.83   | %      |            |   | 1.58 | % |

----

Index

|                       |   | At September 30, 2009 |    |   | At December 31, 2008 |   |
|----------------------------|--------|-----------------------|---------|--------|----------------------|--------|
| (Dollars in thousands)     |   | Amount                |    |   | Percent              |   |   | Amount |   |   | Percent |   |
| NOW and demand deposits    |   | $                     | 99,300  |   |                 |   | 10.8 | % |   | $ | 92,051 |   |   |   | 11.5 | % |
| Money market deposits      |   |                  | 258,513 |   |                 |   | 28.0 |   |   |   | 172,876 |   |   |   | 21.7 |   |
| Regular and other deposits |   |                  | 125,501 |   |                 |   | 13.6 |   |   |   | 117,913 |   |   |   | 14.8 |   |
| Certificates of deposit    |   |                  | 438,699 |   |                 |   | 47.6 |   |   |   | 414,012 |   |   |   | 52.0 |   |
| Total                      |   | $                     | 922,013 |   |                 |   | 100.0 | % |   | $ | 796,852 |   |   |   | 100.0 | % |

----

Index

|                                                                    |   | For The Three Months Ended September 30, |      |
|-------------------------------------------------------------------------|--------|------------------------------------------|-----------|
|                                                                    |   | 2009                                     |      |   | 2008 |   |
|  (Dollars in thousands)                                            |   | Average Balance                          |      |   | Interest Earned/Paid |   |   | Yield/ Cost (4) |   |   | Average Balance |   |   | Interest Earned/Paid |   |   | Yield/ Cost (4) |   |
|  Assets:                                                           |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest-earning assets:                                          |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                                               |   | $                                        | 777,674   |   |   | $ | 11,480 |   |   |   | 5.86 | % |   | $ | 641,094 |   |   | $ | 9,938 |   |   |   | 6.17 | % |
| Securities and certificates of deposit                                  |   |                                     | 314,130   |   |   |   | 2,941 |   |   |   | 3.71 |   |   |   | 333,900 |   |   |   | 3,307 |   |   |   | 3.94 |   |
| Other interest-earning assets                                           |   |                                     | 35,346    |   |   |   | 5 |   |   |   | 0.06 |   |   |   | 21,478 |   |   |   | 99 |   |   |   | 1.83 |   |
| Total interest-earning assets                                           |   |                                     | 1,127,150 |   |   |   | 14,426 |   |   |   | 5.08 |   |   |   | 996,472 |   |   |   | 13,344 |   |   |   | 5.33 |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Noninterest-earning assets                                        |   |                                     | 77,101    |   |   |   |   |   |   |   |   |   |   |   | 79,296 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                                        | 1,204,251 |   |   |   |   |   |   |   |   |   |   | $ | 1,075,768 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities and stockholders' equity:                             |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest-bearing liabilities:                                     |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW  deposits                                                 |   | $                                        | 37,912    |   |   |   | 22 |   |   |   | 0.23 |   |   | $ | 42,078 |   |   |   | 92 |   |   |   | 0.87 |   |
| Money market deposits                                                   |   |                                     | 267,049   |   |   |   | 1,084 |   |   |   | 1.61 |   |   |   | 150,501 |   |   |   | 929 |   |   |   | 2.46 |   |
| Savings and other deposits                                              |   |                                     | 128,816   |   |   |   | 238 |   |   |   | 0.73 |   |   |   | 123,236 |   |   |   | 354 |   |   |   | 1.14 |   |
| Certificates of deposit                                                 |   |                                     | 439,967   |   |   |   | 3,060 |   |   |   | 2.76 |   |   |   | 435,022 |   |   |   | 4,670 |   |   |   | 4.27 |   |
| Total interest-bearing deposits                                         |   |                                     | 873,744   |   |   |   | 4,404 |   |   |   | 2.00 |   |   |   | 750,837 |   |   |   | 6,045 |   |   |   | 3.20 |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances  and other borrowings                           |   |                                     | 62,612    |   |   |   | 507 |   |   |   | 3.21 |   |   |   | 60,316 |   |   |   | 534 |   |   |   | 3.52 |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities                                      |   |                                     | 936,356   |   |   |   | 4,911 |   |   |   | 2.08 |   |   |   | 811,153 |   |   |   | 6,579 |   |   |   | 3.23 |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                                     |   |                                     | 61,203    |   |   |   |   |   |   |   |   |   |   |   | 54,711 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                                   |   |                                     | 11,260    |   |   |   |   |   |   |   |   |   |   |   | 10,509 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                                     | 1,008,819 |   |   |   |   |   |   |   |   |   |   |   | 876,373 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders' equity                                              |   |                                     | 195,432   |   |   |   |   |   |   |   |   |   |   |   | 199,395 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                              |   | $                                        | 1,204,251 |   |   |   |   |   |   |   |   |   |   | $ | 1,075,768 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                     |   |                                     |      |   |   | $ | 9,515 |   |   |   |   |   |   |   |   |   |   | $ | 6,765 |   |   |   |   |   |
| Interest rate spread  (2)                                     |   |                                     |      |   |   |   |   |   |   |   | 3.00 | % |   |   |   |   |   |   |   |   |   |   | 2.10 | % |
| Net interest margin  (3)                                      |   |                                     |      |   |   |   |   |   |   |   | 3.35 | % |   |   |   |   |   |   |   |   |   |   | 2.70 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                                     |      |   |   |   | 120.38 | % |   |   |   |   |   |   |   |   |   |   | 122.85 | % |   |   |   |   |

----

Index

|                                                                    |   | For The Nine Month Ended Septmeber 30, |      |
|-------------------------------------------------------------------------|--------|----------------------------------------|-----------|
|                                                                    |   | 2009                                   |      |   | 2008 |   |
| (Dollars in thousands)                                                  |   | Average Balance                        |      |   | Interest Earned/Paid |   |   | Yield/ Cost (4) |   |   | Average Balance |   |   | Interest Earned/Paid |   |   | Yield/ Cost (4) |   |
| Assets:                                                                 |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans (1)                                                               |   | $                                      | 754,770   |   |   | $ | 33,171 |   |   |   | 5.90 | % |   | $ | 604,157 |   |   | $ | 28,455 |   |   |   | 6.29 | % |
| Securities and certificates of deposit                                  |   | $                                      | 286,433   |   |   |   | 8,598 |   |   |   | 4.03 |   |   |   | 301,477 |   |   |   | 9,281 |   |   |   | 4.11 |   |
| Other interest-earning assets                                           |   |                                   | 29,295    |   |   |   | 23 |   |   |   | 0.11 |   |   |   | 85,350 |   |   |   | 1,640 |   |   |   | 2.57 |   |
| Total interest-earning assets                                           |   |                                   | 1,070,498 |   |   |   | 41,792 |   |   |   | 5.24 |   |   |   | 990,984 |   |   |   | 39,376 |   |   |   | 5.31 |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-earning assets                                              |   |                                   | 80,603    |   |   |   |   |   |   |   |   |   |   |   | 76,733 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                                      | 1,151,101 |   |   |   |   |   |   |   |   |   |   | $ | 1,067,717 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and stockholders' equity:                                   |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                           |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW  deposits                                                 |   | $                                      | 37,483    |   |   |   | 105 |   |   |   | 0.38 |   |   | $ | 38,855 |   |   |   | 236 |   |   |   | 0.81 |   |
| Money market deposits                                                   |   |                                   | 225,982   |   |   |   | 3,184 |   |   |   | 1.89 |   |   |   | 144,751 |   |   |   | 2,967 |   |   |   | 2.74 |   |
| Savings and other deposits                                              |   |                                   | 126,673   |   |   |   | 833 |   |   |   | 0.88 |   |   |   | 129,138 |   |   |   | 1,103 |   |   |   | 1.14 |   |
| Certificates of deposit                                                 |   |                                   | 433,512   |   |   |   | 10,483 |   |   |   | 3.24 |   |   |   | 443,140 |   |   |   | 15,076 |   |   |   | 4.54 |   |
| Total interest-bearing deposits                                         |   |                                   | 823,650   |   |   |   | 14,605 |   |   |   | 2.38 |   |   |   | 755,884 |   |   |   | 19,382 |   |   |   | 3.43 |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLB advances  and other borrowings                           |   |                                   | 64,840    |   |   |   | 1,548 |   |   |   | 3.20 |   |   |   | 53,458 |   |   |   | 1,478 |   |   |   | 3.69 |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities                                      |   |                                   | 888,490   |   |   |   | 16,153 |   |   |   | 2.44 |   |   |   | 809,342 |   |   |   | 20,860 |   |   |   | 3.44 |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-bearing demand deposits                                     |   |                                   | 60,569    |   |   |   |   |   |   |   |   |   |   |   | 53,867 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                                   |   |                                   | 10,412    |   |   |   |   |   |   |   |   |   |   |   | 9,854 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                                   | 959,471   |   |   |   |   |   |   |   |   |   |   |   | 873,063 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders' equity                                              |   |                                   | 191,630   |   |   |   |   |   |   |   |   |   |   |   | 194,654 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                              |   | $                                      | 1,151,101 |   |   |   |   |   |   |   |   |   |   | $ | 1,067,717 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                     |   |                                   |      |   |   | $ | 25,639 |   |   |   |   |   |   |   |   |   |   | $ | 18,516 |   |   |   |   |   |
| Interest rate spread  (2)                                     |   |                                   |      |   |   |   |   |   |   |   | 2.80 | % |   |   |   |   |   |   |   |   |   |   | 1.87 | % |
| Net interest margin  (3)                                      |   |                                   |      |   |   |   |   |   |   |   | 3.21 | % |   |   |   |   |   |   |   |   |   |   | 2.50 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                                   |      |   |   |   | 120.49 | % |   |   |   |   |   |   |   |   |   |   | 122.44 | % |   |   |   |   |

----

Index

----

Index

----

Index

| (In thousands)                        |   | September 30,2009 |    |   | December 31,2008 |   |
|---------------------------------------|--------|-------------------|---------|--------|------------------|--------|
| Unadvanced portion of existing loans: |   |              |    |   |             |   |
| Construction                          |   | $                 | 81,990  |   |             | $      | 82,041 |   |
| Home equity line of credit            |   |              | 24,559  |   |             |   | 27,168 |   |
| Other lines and letters of credit     |   |              | 4,038   |   |             |   | 3,658 |   |
| Commitments to originate:             |   |              |    |   |             |   |   |   |
| One- to four-family                   |   |              | 2,680   |   |             |   | 4,567 |   |
| Commercial real estate                |   |              | 26,161  |   |             |   | 36,738 |   |
| Construction                          |   |              | 3,875   |   |             |   | 1,037 |   |
| Other loans                           |   |              | 3,020   |   |             |   | 17,729 |   |
| Total loan commitments outstanding    |   | $                 | 146,323 |   |             | $      | 172,938 |   |

----

Index

te

----

Index

| Interest Rate Sensitivity |   |                |                   |   |   |    |   |
|---------------------------|--------|---------------------|------------------------|--------|--------|---------|--------|
|                      |   |                |                   |   |   |    |   |   |   |   |
|                      |   |                |                   |   |   |    |   |   |   |   |
| Increase (Decrease)       |   |                |                   |   |   |    |   |   |   |
| in Market Interest        |   | Net Interest Income |
| Rates (Rate Shock)        |   | Amount              |                   | Change |   | Percent |
|                      |   |                | (Dollars in thousands) |
|                      | 200    |                |                   |   | 32,177 |    |   |   | (6,668 | ) |   |   | (17.17 | ) |
|                      | 100    |                |                   |   | 35,615 |    |   |   | (3,230 | ) |   |   | (8.32 | ) |
|                      | 0      |                |                   |   | 38,845 |    |   |   |   |   |   |   |   |   |
|                      | (100   | )                   |                   |   | 41,693 |    |   |   | 2,848 |   |   |   | 7.33 |   |

Item 4

|   | (a) | Disclosure Controls and Procedures |
|--------|-----|------------------------------------|

----

Index

|   | (b) | Internal Control over Financial Reporting |
|--------|-----|-------------------------------------------|

Item 1

te

----

Index

em 

|                         |   | (a)                                         |   |   | (b)                                    |   |   | (c)                                                                                             |   |   | (d)                                                                                                                     |   |
|------------------------------|--------|---------------------------------------------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|
| Period                       |   | Total Number of Shares (or Units) Purchased |   |   | Average Price Paid Per Share (or Unit) |   |   | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1) |   |   | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |   |
| July 1 – 31, 2009 (1)  |   |                                        | -      |   |                                   |   | -      |                                                                                            |   |   | -                                                                                                                       |   |   |   | 289,049 |   |
|                         |   |                                        |   |   |                                   |   |   |                                                                                            |   |   |                                                                                                                    |   |   |   |   |   |
| August 1 – 31, 2009    |   |                                        | 77,400 |   |                                   | $      | 9.33   |                                                                                            |   |   | 77,400                                                                                                                  |   |   |   | 211,649 |   |
|                         |   |                                        |   |   |                                   |   |   |                                                                                            |   |   |                                                                                                                    |   |   |   |   |   |
| September 1 – 30, 2009 |   |                                        | 22,381 |   |                                   | $      | 9.33   |                                                                                            |   |   | 22,381                                                                                                                  |   |   |   | 189,268 |   |
| Total                        |   |                                        | 99,781 |   |                                   | $      | 9.33   |                                                                                            |   |   | 99,781                                                                                                                  |   |   |   | 189,268 |   |

em

m 

m

----

Index

em

| 3.1 | Amended and Restated Articles of Organization of Meridian Interstate Bancorp, Inc.* |
|-----|-------------------------------------------------------------------------------------|

| 3.2 | Amended and Restated Bylaws of Meridian Interstate Bancorp, Inc.* |
|-----|-------------------------------------------------------------------|

| 4 | Form of Common Stock Certificate of Meridian Interstate Bancorp, Inc.* |
|---|------------------------------------------------------------------------|

| 10.1 | Form of East Boston Savings Bank Employee Stock Ownership Plan* |
|------|-----------------------------------------------------------------|

| 10.2 | Form of East Boston Savings Bank Employee Stock Ownership Plan Trust Agreement* |
|------|---------------------------------------------------------------------------------|

| 10.3 | East Boston Savings Bank Employee Stock Ownership Plan Loan Agreement, Pledge Agreement and Promissory Note* |
|------|--------------------------------------------------------------------------------------------------------------|

| 10.4 | Form of Amended and Restated Employment Agreement* |
|------|----------------------------------------------------|

| 10.5 | Form of East Boston Savings Bank Employee Severance Compensation Plan* |
|------|------------------------------------------------------------------------|

| 10.6 | Form of Supplemental Executive Retirement Agreements with certain directors* |
|------|------------------------------------------------------------------------------|

| 10.7 | Form of Separation Agreement with Robert F. Verdonck incorporated by reference to the Form 8-K filed on September 9, 2008 |
|------|---------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Form of Separation Agreement with Leonard V. Siuda (incorporated by reference to Form 8-K filed on April 7, 2009) |
|------|-------------------------------------------------------------------------------------------------------------------|

| 10.9 | Form of Separation Agreement with Philip F. Freehan (incorporated by reference to Form 8-K filed on April 7, 2009) |
|------|--------------------------------------------------------------------------------------------------------------------|

| 10.10 | Form of Supplemental Executive Retirement Agreement with Richard J. Gavegnano filed as an exhibit to Form 10-Q filed on May 14, 2008 |
|-------|--------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Form of Employment Agreement with Richard J. Gavegnano (incorporated by reference to the Form 8-K filed on January 12, 2009) |
|-------|------------------------------------------------------------------------------------------------------------------------------|

| 10.12 | Form of Employment Agreement with Deborah J. Jackson (incorporated by reference to the Form 8-K filed on January 22, 2009) |
|-------|----------------------------------------------------------------------------------------------------------------------------|

| 10.13 | Form of Supplemental Executive Retirement Agreement with Deborah J. Jackson (incorporated by reference to the Form 8-K filed on January 22, 2009) |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14 | 2008 Equity Incentive Plan** |
|-------|------------------------------|

| 10.15 | Amendment to Supplemental Executive Retirement Agreements with certain directors (incorporated by reference to the Form 10K-A filed on April 8, 2009) |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16 | Agreement and Plan of Merger (incorporated by reference to the Form 8-K filed on July 24, 2009) |
|-------|-------------------------------------------------------------------------------------------------|

| 21 | Subsidiaries of Registrant* |
|----|-----------------------------|

| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------|----------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------|----------------------------------------------------------------------------------------------------|

| 32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| * | Incorporated by reference to the Registration Statement on Form S-1 of Meridian Interstate Bancorp, Inc. (File No. 333-146373), originally filed with the Securities and Exchange Commission on September 28, 2008. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement for its 2008 Annual Meeting, as filed with the Securities and Exchange Commission on July 11, 2008. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

SIG

|                                | MERIDIAN INTERSTATE BANCORP, INC.            |   |
|-------------------------------------|----------------------------------------------|--------|
|                                | (Registrant)                                 |   |
|                                |                                         |   |
|                                |                                         |   |
| Dated:  November 13, 2009 | /s/ Richard J. Gavegnano                     |   |
|                                | Richard J. Gavegnano                         |   |
|                                | Chairman and Chief Executive Officer         |   |
|                                | (Principal Executive Officer)                |   |
|                                |                                         |   |
|                                |                                         |   |
| Dated:  November 13, 2009 | /s/ Gregory Derderian                        |   |
|                                | Gregory Derderian                            |   |
|                                | Treasurer and Chief Financial Officer        |   |
|                                | (Principal Financial and Accounting Officer) |   |

----