Meridian Bancorp, Inc. - S-1 filing on 2014-03-10

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Information pertaining to the activity in the plan is as follows:


	Years Ended December 31,
	2013			2012			2011
	(In thousands)
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—		$	—
Employer contribution		—			302			—
Benefit payments		—			(302	)		—

Fair value of plan assets at end of year		—			—			—

Change in benefit obligation:
Benefit obligation at beginning of year		1,091			1,245			828
Service cost		85			91			87
Interest cost		35			42			43
Benefit payments		—			(302	)		—
Actuarial (gain) loss		(137	)		15			287

Benefit obligation at end of year		1,074			1,091			1,245

Funded status at end of year	$	(1,074	)	$	(1,091	)	$	(1,245	)

Accrued benefit obligation at end of year	$	(1,074	)	$	(1,091	)	$	(1,245	)

Accumulated benefit obligation at end of year	$	(1,000	)	$	(1,006	)	$	(1,153	)

The assumptions used to determine benefit obligations are as follows:


	Years Ended December 31,
	2013			2012			2011
Discount rate		4.00	%		3.50	%		4.25	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%
Retirement age		72			72			72

The components of net periodic benefit cost are as follows:


	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Service cost	$	85	$	91	$	87
Interest cost		35		42		43
Recognition of prior service cost		28		28		28
Amortization of unrecognized loss		61		68		—

	$	209	$	229	$	158


	Years Ended December 31,
	2013		2012		2011
	(In thousands)
Service cost	$	—	$	—	$	—
Interest cost		24		30		33
Recognition of prior service cost		17		18		18
Recognized net actuarial loss		5		26		—

	$	46	$	74	$	51

The assumptions used to determine net periodic benefit costs are as follows:


	Years Ended December 31,
	2013			2012			2011
Discount rate		3.50	%		4.25	%		5.25	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%
Retirement age		72			72			72

The expected future contributions and benefit payments for this plan are as follows:

The weighted-average assumptions used for options granted during the years ended December 31, 2013, 2012 and 2011 are as follows:


	Weighted Average Assumptions
	2013			2012			2011
Expected term (years)		6.50			6.50			6.50
Expected dividend yield		0.44	%		0.58	%		0.62	%
Expected volatility		30.94	%		31.05	%		29.84	%
Expected forfeiture rate		—	%		—	%		—	%
Risk-free interest rate		1.19	%		1.18	%		1.97	%
Fair value of options granted	$	5.82		$	4.38		$	4.07

A summary of options and SARs under the plan as of December 31, 2013, and activity during the year then ended, is presented below:


	Number of Shares			Weighted - Average Exercise Price
Options outstanding at beginning of year		897,450		$	9.58
Options granted		49,700			18.52
Options exercised		(3,700	)		9.47
SARs exercised		(10,000	)		9.43

Options outstanding at end of year		933,450		$	10.06

Options exercisable at end of year		763,540		$	9.42

The following table summarizes information about options outstanding and options exercisable at December 31, 2013:


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Shares		Weighted - Average Remaining Contractual Life (in years)		Weighted - Average Exercise Price		Number of Shares		Weighted - Average Remaining Contractual Life (in years)		Weighted - Average Exercise Price
$ 8.50 - 9.00		301,650		5.70	$	8.90		240,300		5.70	$	8.90
$ 9.00 - 9.50		509,000		4.87		9.49		496,000		4.84		9.49
$10.50 - 11.00		2,500		6.57		10.75		1,500		6.57		10.75
$11.00 - 11.50		5,000		6.48		11.13		3,000		6.48		11.13
$12.00 - 12.50		20,600		7.90		12.23		8,240		7.90		12.23
$13.00 - 13.50		25,000		7.86		13.29		7,500		7.70		13.32
$13.50 - 14.00		15,000		7.52		13.73		6,000		7.52		13.73
$16.00 - 16.50		5,000		8.95		16.30		1,000		8.95		16.30
$18.00 - 18.50		46,700		9.32		18.28		N/A		N/A		N/A
$22.00 - 22.50		3,000		9.81		22.24		N/A		N/A		N/A

		933,450		5.60				763,540		5.21

The following table summarizes the Company’s non-vested restricted stock activity for the year ended December 31, 2013:


	Number of Shares			Weighted - Average Grant - Date Fair Value
Non-vested restricted stock at beginning of year		119,055		$	10.25
Granted		48,700			18.96
Vested		(63,895	)		9.71
Forfeited		(50	)		9.50

Non-vested restricted stock at end of year		103,810			14.68

At December 31, 2013, the remaining principal balance on the ESOP debt is payable as follows:

Shares held by the ESOP include the following:

Long-Term Health Care Plan [Member]

Information pertaining to activity in the plan is as follows:


	Years Ended December 31,
	2013			2012			2011
	(In thousands)
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—		$	—
Employer contribution		48			44			44
Benefit payments		(48	)		(44	)		(44	)

Fair value of plan assets at end of year		—			—			—

Change in benefit obligation:
Benefit obligation at beginning of year		801			759			737
Interest cost		24			30			33
Benefit payments		(48	)		(44	)		(44	)
Actuarial (gain) loss		(45	)		56			33

Benefit obligation at end of year		732			801			759

Funded status at end of year	$	(732	)	$	(801	)	$	(759	)

Accumulated benefit obligation at end of year	$	(732	)	$	(801	)	$	(759	)